Hyderabad Surges as India's Fastest-Growing Office Market: Knight Frank Report
Hyderabad has emerged as the fastest-growing office market in India, with a compound annual growth rate (CAGR) of 9.2%, according to a Knight Frank India report. The city's total office stock now stands at 123 million square feet, contributing 12% to India's total office market.
HyderabadOffice MarketReal EstateKnight FrankCommercial PropertyReal Estate MumbaiAug 05, 2025
This growth represents a compound annual growth rate (CAGR) of 9.2 per cent, the highest among the top six metros, according to a report by real estate consultancy Knight Frank India.
The report highlights that India’s total office stock is poised to surpass one billion sq ft by Q3 2025, a major milestone for the country’s commercial real estate sector. As of H1 2025, the combined office stock across the top eight Indian cities stood at 993 million sq ft. From under 200 million sq ft in 2005 to nearly 1 billion sq ft in 2025, India’s office supply has grown at a CAGR of 8.6 per cent over the last two decades.
Among major metros, Bengaluru leads with 229 million sq ft, contributing 23 per cent to the total office stock. It is followed by the National Capital Region (NCR) with 199 million sq ft (20%) and Mumbai with 169 million sq ft (17%). Together, these three cities comprise 60 per cent of the country’s total office supply. Hyderabad, along with Pune and Chennai, contributes 33 per cent, while Ahmedabad and Kolkata make up the remaining 7 per cent. Mumbai and Pune have recently touched record highs in office transaction volumes, while Hyderabad has reached a post-pandemic peak.
India’s total office inventory is currently valued at Rs 16 trillion (USD 187 billion). Of this, Grade A office spaces constitute 53 per cent, followed by Grade B at 43 per cent, and Grade C at 4 per cent. Cities like Bengaluru and Hyderabad boast the highest concentration of Grade A properties, while Mumbai and Kolkata—being older office markets—highlight the need for modernization and upgrades.
Hyderabad’s office stock, now at 123 million sq ft, reflects its rapid rise, backed by the highest CAGR of 9.2 per cent among India’s top metro cities. A significant portion of this is concentrated in HITEC City and Kondapur, which together account for 47 per cent, while Gachibowli contributes another 41 per cent. Hyderabad’s growth is driven by tech-enabled workspaces, scalable infrastructure, and competitive rental rates, all of which continue to attract global corporations and investors. This has positioned Hyderabad as India’s fastest-growing office market, with strong investment traction and future potential.
The Knight Frank report also points to India’s continued cost advantage in the global office space market. Average monthly rents are projected to decline to USD 0.96 per sq ft in 2025, further boosting India’s appeal for multinational corporations. The combination of affordability and increasing Grade A office supply has accelerated the growth of Global Capability Centres (GCCs) and reinforced India’s importance in multinational real estate strategies.
Despite ongoing global economic uncertainties, office demand in Q1 2025 in India showed a notable uptick, underlining the positive business sentiment prevailing across industries. Leadership teams from major firms such as TCS, Infosys, Wipro, HCL Technologies, and Reliance are playing an active role in pushing for a return to the office. As India maintains its status as a global growth leader, the office space segment is expected to continue its upward trajectory. Apart from some constraints in supply, the sector shows minimal headwinds and is well-positioned to sustain momentum through the rest of 2025.
Frequently Asked Questions
What is the current total office stock in Hyderabad?
Hyderabad’s total office stock as of June 2025 is 123 million square feet.
What is the CAGR of Hyderabad's office market growth?
Hyderabad’s office market has a compound annual growth rate (CAGR) of 9.2 per cent, the highest among the top six metros in India.
Which cities contribute the most to India's office stock?
Bengaluru leads with 229 million sq ft (23%), followed by NCR with 199 million sq ft (20%) and Mumbai with 169 million sq ft (17%).
Where is Hyderabad's office stock primarily concentrated?
Hyderabad’s office stock is primarily concentrated in HITEC City and Kondapur, which together account for 47 per cent, while Gachibowli contributes another 41 per cent.
What are the key drivers of Hyderabad's office market growth?
Hyderabad’s growth is driven by tech-enabled workspaces, scalable infrastructure, and competitive rental rates, which continue to attract global corporations and investors.
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