Business EconomyPosted at: May 19 2026 10:52PM


Hyderabad logs record Q1 office leasing at 3.15 million sq ft: Cushman & Wakefield

Hyderabad, May 19 (UNI) Hyderabad’s office market registered its strongest-ever first-quarter performance in 2026, with gross leasing volume (GLV) touching a record 3.15 million square feet (MSF), according to the latest Office MarketBeat Q1 2026 report released by the global real estate consultancy Cushman & Wakefield.
The report showed that office leasing activity in the city grew 21.6 per cent year-on-year, reinforcing Hyderabad’s position as one of India’s leading commercial real estate hubs.
The city accounted for nearly 14 per cent of India’s total office leasing activity of around 22 MSF during the quarter.
Large office deals of over 100,000 sq ft dominated the market, contributing 81 per cent of the total leasing activity, while Madhapur emerged as the key driver with a commanding 91 per cent share in overall leasing, the report revealed.
Despite no new office completions during the quarter, Hyderabad recorded robust net absorption of 2.21 MSF, indicating sustained occupier demand.
The strong demand also pushed citywide vacancy levels down by 260 basis points year-on-year to 20.22 per cent. Vacancy in Madhapur stood at 7.5 per cent, while Grade A office assets tightened further to just 4.8 per cent, the report stated.
Office rentals in the city also touched record levels, with average stock-weighted rents rising 11.6 per cent year-on-year to Rs 92.2 per sq ft.
Madhapur continued to command premium rentals at Rs 105.5 per sq ft, while Gachibowli remained a cost-effective alternative at Rs 72.3 per sq ft.
Sector-wise, the IT-BPM segment remained the largest occupier with a 36 per cent share in leasing activity, followed by flexible workspaces at 30 per cent and BFSI firms at 23 per cent.
Global Capability Centres (GCCs) accounted for 0.83 MSF of leasing during the quarter, representing 26 per cent of the total leasing volume.
The report said Hyderabad is expected to witness a strong supply pipeline, with nearly 11 MSF of new office space likely to be added during the rest of 2026, mainly in Gachibowli and Madhapur. Another 20 MSF is expected to be delivered during 2027-28.
Veera Babu, Executive Managing Director, Tenant Representation-India, Cushman & Wakefield, said Hyderabad continues to attract large occupiers due to its strong talent pool, mature office ecosystem and growing GCC presence, which are expected to sustain leasing momentum in the coming quarters.
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