Hyderabad’s Commercial Real Estate Booms with Affordable Rents, Driving GCC Growth
Hyderabad’s commercial real estate sector is witnessing robust growth, driven primarily by affordable office rents and rapid absorption of new spaces. Between 2022 and 2025, office rents in the city surged impressively by 24.1%, yet lease rates remain around 9.5% lower than Bengaluru’s, where rents increased by 15.8%. This notable price advantage is positioning Hyderabad as a preferred destination for Global Capability Centres (GCCs) and tech companies looking for quality yet cost-effective office spaces.
Modern business hubs such as Hitec City, Gachibowli, and Madhapur are at the forefront of this expansion. These areas have attracted investments from diverse sectors including healthcare, pharmaceuticals, and advanced technology industries. Hyderabad’s proactive government policies, improving infrastructure, and business-friendly ecosystem have further strengthened its competitive edge.
Several major global corporations, including TCS, Infosys, Apple, and Amazon, have expanded their operations in Hyderabad, highlighting the city’s increasing appeal as an international technology and services hub. While Bengaluru still leads in overall leasing activity, its real estate market contends with high congestion and operational costs, prompting companies to reassess their expenses. Hyderabad’s relatively lower costs and supportive environment provide an attractive alternative for businesses balancing growth and budgetary concerns.
Data from Digi Space Realty Solutions reveals a dramatic market shift: nearly 40% of new office leases in Hyderabad now involve GCCs, up significantly from just 11% a year ago. Vacancy rates in premium Grade-A buildings in Hitec City have reached record lows, underscoring strong demand amid limited new supply.
According to Nikhil Rao, Director of Operations at Digi Space Realty Solutions, Hyderabad’s rent growth reflects strong market confidence while maintaining a cost advantage over Bengaluru. This enables expanding firms to grow without overstretching budgets, making Hyderabad an ideal location for companies seeking to maximize value.
Consequences and Impact
The sustained demand and rising rents in Hyderabad’s commercial real estate signal a thriving business environment that can attract further investments. Growth in GCCs contributes to job creation and skill development in the city, reinforcing its stature as a technology and innovation hub. Additionally, this expansion stimulates ancillary sectors such as retail, hospitality, and real estate.
However, with increasing commercial space absorption, careful urban planning and infrastructure development will be vital to sustain this growth without leading to congestion or resource strain. The ongoing success of Hyderabad’s office market could also pressure Bengaluru to reassess its cost structures and infrastructure offerings to remain competitive.
Overall, Hyderabad’s affordable rents combined with premium infrastructure and a proactive governance model are shaping it into a premier destination for global companies, shaping the city’s future economic trajectory.
This transformation marks Hyderabad as an emerging leader in India’s commercial real estate and technology ecosystem, poised for continued growth and prosperity.