Hyderabad, February 11, 2025: Real estate consulting firm CBRE South Asia Pvt. Ltd has unveiled the findings of its joint report titled, ‘HYSEA Scale @ Hyderabad: Global Technology Destination’, with Hyderabad Software Enterprises Association (HYSEA) highlighting the city’s expanding real estate landscape. As per the report, Hyderabad’s office stock is estimated to surpass 200 million square feet (msf) by 2030. Hyderabad currently contributes to around 15 per cent of the total office space in India and accounts for over 18 per cent of the green-certified office stock in India. Driven by robust demand for office spaces by global firms, the city’s office stock has more than tripled since 2014 to nearly 137 msf as of December 2024.
The report highlights Hyderabad’s position as a preferred destination for businesses seeking dynamic office spaces. In 2024, this momentum continued, with absorption reaching 12.3 msf. With an extensive presence of leading players, the technology sector led Hyderabad’s office leasing activity with the highest share at 31 per cent. In the past, Hyderabad’s office absorption has been dominated by the technology sector, with an annual share of about 30-35 per cent. However, in recent years, the city has witnessed a diversification in its occupier base. Various other sectors, including flexible space operators, life sciences firms, and consulting companies, have increasingly turned to Hyderabad for their office space needs. In 2024, life sciences firms had an office leasing share of 21 per cent, and flexible space operators share stood at 14 per cent in overall office leasing, showcasing a diverse demand across industries. Hyderabad has now emerged as a major business and innovation hub, with global corporations expanding their presence across diverse sectors, including IT, pharmaceuticals, biotechnology, and finance.
The report further highlighted Hyderabad’s thriving tech ecosystem and talent pool, which made it a hub for Global Capability Centers (GCCs). These centers are driving digital transformation, evolving into strategic partners while recruiting specialized talent in engineering, research & development, and information technology. GCC absorption in Hyderabad grew by over 12 per cent from 2022 to 2024, reaching 5.3 million sq. ft. in 2024, accounting for nearly 43 per cent of the total office space take up in the city last year. Hyderabad is ranked second in GCC leasing in India, after Bengaluru and the city continues to attract global corporations across industries such as technology, pharmaceuticals, biotechnology, and financial services. The adoption of advanced technologies like AI, cloud computing, and data analytics further fuels this growth, backed by Hyderabad’s robust infrastructure and talent ecosystem.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, “Hyderabad’s transformation into a global business and technology hub showcases its ability to adapt and evolve with market demands. The city’s robust infrastructure, diverse occupier base, and skilled talent pool position it as a critical growth center for India’s real estate landscape. With its strong IT/ITeS ecosystem, Hyderabad will continue to remain a top choice for GCCs across technology, BFSI, and life sciences, driving office space demand.”
Gipson Paul, Senior Executive Director, Advisory & Transaction Services, CBRE India, said, “Hyderabad’s real estate landscape is evolving rapidly, with a strong emphasis on sustainability and eco-friendly practices. Developers are increasingly integrating green spaces and adopting environmentally conscious measures driven by proactive government policies and incentives. This commitment positions Hyderabad as a leading example of sustainable urban development, setting benchmarks for cities across India”.
Outlook
Looking ahead, Hyderabad’s real estate sector is poised for continued diversification. With increased investments in advanced technologies such as AI, robotics, and electric vehicles, coupled with the Telangana government’s sustained focus on infrastructure development, the city is well-positioned to maintain its momentum as a preferred destination for global businesses.
Hyderabad’s strong IT/ITeS ecosystem and abundant talent pool have cemented its status as a top choice for Global Capability Centers (GCCs) across technology, BFSI, and life sciences. The city’s unrestricted FSI (Floor Space Index) policies, combined with affordable housing options and a high quality of life, attract young professionals and drive demand for office spaces. Additionally, Hyderabad’s thriving IT and pharmaceutical sectors continue to fuel growth in both residential and commercial real estate.
The city’s office space is projected to witness 1.5x growth over the next five years, reflecting its sustained appeal to businesses.
Key Factors Contributing to GCC Growth in Hyderabad
- Availability of premium Grade A assets
- Adequate availability of skilled talent
- Well-developed IT/ITES ecosystem
- Significant scope for future scalability
- Established life sciences market
- Supportive government initiatives
- Robust infrastructure investment forecasts
Infrastructure Investment Forecast
- Vision – 2050 (Master Plan): Government projects worth over INR 1 lakh crore for sustainable urban infrastructure in Hyderabad.
- Hyderabad-Mumbai High-Speed Rail: 767-km rail corridor under the National Rail Plan to improve connectivity.
- Hyderabad-Indore Expressway: 713-km 4-lane expressway under Bharatmala Pariyojana Phase I by NHAI (National Highways Authority of India) to drive economic growth and tourism.
- Nagpur-Hyderabad-Bengaluru Expressway: Proposed 1,100-km 6-lane expressway to reduce travel time by 50 per cent between Nagpur and Bengaluru.
- Hyderabad Metro Rail Expansion: Six new corridors spanning approximately 116 km to revolutionize urban transportation.
- Hyderabad ORR (Outer Ring Road) Water Supply Scheme Phase II: 137 million liters/day storage reservoir and 2,865 km pipeline network to address water challenges.
- Musi Riverfront Development Project: Establishment of 39 STPs (Sewage Treatment Plants) to treat water, combat sewage pollution and revitalize the river and surroundings
- Future City: 30,000+ acres housing Young India Skill University and industries like technology and life sciences.
- AI City: Largest ‘Artificial Intelligence City’ spanning 200 acres across Maheshwaram, Serilingampally, Chevella, and Ibrahimpatnam mandals along the ORR.