Hyderabad office leasing nears record; premium homes drive 71% of H2 2025 sales

Hyderabad: Hyderabad’s commercial and residential real estate markets recorded significant gains in 2025, with office leasing nearing an all-time high and premium homes capturing the majority of sales, according to Knight Frank India’s H2 2025 report.

GCCs and premium housing reshape Hyderabad property trends

Office leasing in the city reached 11.4 million sq ft in 2025, marking a 10% year-on-year increase and the second-highest annual volume on record. In H2 2025 alone, leasing stood at 5.5 million sq ft. Global Capability Centres (GCCs) drove half of all leasing activity, up from 38% in H2 2024.

Major global companies such as Charles Schwab, Warner Bros. Discovery, Goldman Sachs, and ServiceNow closed large transactions. Flex space operators accounted for 25% of the demand, while third-party IT firms posted a 42% YoY rise in leasing, capturing a 16% share.

Tightened supply pushed rents upward. New office additions plunged 72% YoY to 4.3 million sq ft, while average monthly rents climbed 10% to ₹77 per sq ft. Vacancy levels dropped by 616 basis points to 12.1%, with HITEC City and the Financial District leading rent gains.

The residential sector also showed continued strength. Hyderabad recorded 38,403 home sales in 2025, up 4% YoY, with H2 contributing 19,355 units. Prices rose 13% to an average of ₹6,721 per sq ft, largely due to demand in premium corridors.

Homes priced above ₹1 crore accounted for 71% of all H2 2025 sales. The ₹1–2 crore bracket held a 44% share, while ₹2–5 crore homes rose to 22%. Affordable housing shrank further, with homes below ₹50 lakh making up just 4% of total sales. Luxury units in the ₹10–20 crore segment sold the fastest, with a Quarters-to-Sell (QTS) ratio of 1.1.

Knight Frank noted that strong GCC-led office demand and rising premium home sales reflect Hyderabad’s evolution into a high-value global hub for business and living.