Hyderabad: Hyderabad’s commercial real estate market is making steady progress, with office rents posting strong growth of 24.1 per cent between 2022 and 2025. Lease rates have climbed by about 9.5 per cent, yet they remain more affordable than those in Bengaluru, where rents rose by 15.8 per cent. This remarkable price arbitrage is fuelling Hyderabad’s emergence as a preferred base for Global Capability Centres (GCCs) and technology companies seeking quality spaces at competitive costs.
Modern business districts such as Hitec City, Gachibowli, and Madhapur have driven this boom, attracting investment from healthcare, pharmaceutical, and advanced technology sectors. The city’s proactive government policies, robust infrastructure, and business-friendly ecosystem have further tipped the scales in its favour. Major global occupiers such as TCS, Infosys, Apple, and Amazon have expanded their presence in Hyderabad, underscoring its appeal to international technology and service giants.
Bengaluru, though retaining its lead in total leasing activity with marquee areas like Whitefield, Outer Ring Road, and Electronic City, continues to grapple with real estate congestion and rising operational costs. While its premium business districts command higher rents and fierce competition, companies are increasingly scrutinising their bottom lines — making Hyderabad’s lower costs and supportive environment an attractive alternative.
According to industry insights from Digi Space Realty Solutions, Hyderabad’s rental surge mirrors the city’s rapid absorption of office spaces; nearly 40 per cent of new leases now involve GCCs — up from just 11 per cent a year ago — illustrating a dramatic shift in market preference. Vacancy rates, especially in Hitec City’s Grade-A buildings, are at record lows, affirming the strength of demand despite limited new supply.
Nikhil Rao, director of operations at the firm, said, “Hyderabad’s rent growth signals strong market confidence, but the city’s cost advantage compared to Bengaluru allows dynamic firms to expand their footprints without overstretching budgets. For businesses balancing scale and spend, Hyderabad delivers unmatched value.”
With affordable office spaces, rapid infrastructure development, and an evolving technology landscape, Hyderabad is swiftly cementing its position as a top destination for global businesses seeking both value and quality.
