Hyderabad MarketBeat Reports

Hyderabad recorded its strongest office performance to date, with gross leasing volumes (GLV) touching 5.42 MSF in Q4 25, supporting a record annual GLV of 12.44 MSF. Net absorption reached 3.91 MSF in Q4 and 9.11 MSF for the year. IT BPM led Q4 demand at 44%, followed by BFSI (35%) and flex operators (12%). GCCs continued to anchor activity with 34% of annual leasing. Q4 supply additions total led 5.51 MSF, primarily in Gachibowli, helping citywide vacancy ease to 22.06%. Rentals strengthened, rising 3% q o q and 12% y o y.

Hyderabad recorded retail leasing of ~0.43 MSF in Q4-25, up by 14% q-o-q, taking annual volumes to ~1.95 MSF. Main streets dominated with 85% share, while malls improved to 15%, reflecting initial traction in new supply. Suburban corridors led with 46% share, followed by peripheral (29%) and core markets (25%). Fashion drove leasing with 32% share, followed by F&B at 20%. Grade A mall vacancy rose to 6.1% due to Lakeshore Mall’s addition, now Hyderabad’s largest, highlighting supply-led vacancy amid strong demand prospects. High street rentals remained stable, supported by steady occupier interest, reinforcing healthy retail fundamentals.

Hyderabad saw 9,126 residential launches in Q1 2026, led by the West zone (65%), notably the Financial District and Nanakramguda, and North zone (19%) with Balanagar as a key contributor. Supply was well-balanced across core (36%), peripheral (36%), and suburban (29%) markets. The mid-segment accounted for 42% of launches, with high-end and luxury at 28% and 10% respectively, with premium offerings concentrated in West Hyderabad’s prime corridors. Capital values rose 3% y-o-y and rentals grew 2%, while Narsingi-Kokapet outperformed with 12% capital and 10% rental growth y-o-y. With strong market fundamentals and a diverse supply mix, Hyderabad stands out as a key destination for real estate investment and sustained growth.

Hyderabad recorded 1.71 MSF of warehousing leasing in H2 2025, supported by strong large-format demand, taking annual absorption to a robust 4.19 MSF. E&M (34%), 3PL (32%), and FMCG (10%) led H2 activity, with the Northern corridor (46%) and Southern corridor (27%) dominating leasing. Industrial demand strengthened to 0.26 MSF, driven by expansions in Shamshabad and Patancheru. Rentals and land values firmed up annually, supported by sustained occupier confidence and healthy Grade A availability.

Cushman & Wakefield India Capital MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.