Hyderabad Office Leasing Nears All-Time High as Premium Homes Dominate 71% Sales in H2 2025
Hyderabad real estate market 2025 shines as office leasing hits 11.4 million sq ft and premium homes capture 71% sales share in H2 2025, signaling strong growth.
Hyderabad real estate market 2025 has emerged as one of India’s strongest growth stories, with office leasing nearing an all-time high and premium housing dominating residential sales in H2 2025, highlighting the city’s transformation into a global business and high value living hub.
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Hyderabad Real Estate Market Shows Strong Momentum in 2025
According to the latest market assessment, Hyderabad recorded robust performance across both office and residential segments in 2025, reflecting sustained corporate demand and a clear consumer shift towards premium homes.
Office leasing activity touched 11.4 million sq ft in 2025, marking a 10% year-on-year growth and standing just below the historic peak seen in 2019. Leasing during H2 2025 alone reached 5.5 million sq ft, indicating steady demand throughout the year.
Office Leasing Nears All-Time High in Hyderabad
The office real estate market in Hyderabad remained resilient despite limited new supply.
Key highlights of Hyderabad office leasing in 2025:
- Total leasing: 11.4 million sq ft (second-highest ever)
- H2 2025 leasing: 5.5 million sq ft
- New office supply: Down sharply by 72% YoY to 4.3 million sq ft
- Average office rents: Up 10% YoY to ₹77 per sq ft per month
- Vacancy rate: Fell by 616 basis points to 12.1%
Established commercial hubs such as HITEC City and the Financial District led rental growth, benefiting from strong occupier interest and reduced vacancy levels.
GCCs Drive Office Demand in H2 2025
Global Capability Centres (GCCs) emerged as the primary growth engine, accounting for 50% of total office leasing in H2 2025, up from 38% a year earlier. Several large multinational firms anchored major transactions, reinforcing Hyderabad’s appeal as a global operations base.
Other contributors included:
- Flex space operators: 25% share of leasing
- Third-party IT firms: 16% share, with a strong 42% YoY growth
These trends underline Hyderabad’s rising stature as a preferred destination for technology, finance, and global enterprise operations.
Premium Housing Dominates Hyderabad Residential Sales
On the residential front, Hyderabad housing sales reached 38,403 units in 2025, registering a 4% YoY increase. Sales during H2 2025 rose 5% to 19,355 units, supported by strong demand in prime corridors.
Average residential prices climbed 13% YoY to ₹6,721 per sq ft, driven largely by premium and luxury project launches.
Homes Above ₹1 Crore Take 71% Share in H2 2025
The most striking trend in the Hyderabad residential market was the dominance of premium homes.
Sales distribution in H2 2025:
- Above ₹1 crore: 71% share (up from 63% last year)
- ₹1–2 crore segment: 44% share (core demand segment)
- ₹2–5 crore homes: 22% share, showing rapid growth
- Below ₹50 lakh: Just 4% share, continuing to shrink
Luxury homes priced ₹10–20 crore recorded the fastest turnover, with a quarters-to-sell (QTS) of only 1.1, reflecting strong buyer appetite for high-end living.
Hyderabad Emerges as a High-Value Global Destination
The combination of GCC-led office leasing growth and sustained premium housing demand highlights Hyderabad’s evolution into a high-value global business and residential destination. With strong corporate interest, rising rentals, and a decisive shift toward luxury housing, the city’s real estate fundamentals remain firmly positive heading into 2026.
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