Hyderabad’s Office Supply Dips 51% Despite Growth in Other Cities

While Mumbai and Bengaluru see a surge in new office space, Hyderabad's supply has dropped significantly, raising concerns about the city's real estate market.

HyderabadReal EstateOffice SupplyMumbaiBengaluruReal Estate MumbaiNov 13, 2025

Hyderabad’s Office Supply Dips 51% Despite Growth in Other Cities
Real Estate Mumbai:Hyderabad, a city known for its robust IT and real estate sectors, has seen a significant decline in new office supply, dropping by 51% in recent months. This stark contrast is particularly notable as other major cities like Mumbai and Bengaluru continue to expand their office spaces.

Mumbai, for instance, has more than doubled its new office supply, reaching 1.80 million square feet. This growth is driven by a surge in demand from various sectors, including IT, finance, and healthcare. Similarly, Bengaluru, often referred to as the Silicon Valley of India, has also seen a healthy increase in new office spaces.

The decline in Hyderabad's office supply can be attributed to several factors, including a slowdown in new project launches and a shift in focus towards existing developments. Real estate experts suggest that the city's market is currently experiencing a period of consolidation, where developers are focusing on completing and marketing their existing projects rather than launching new ones.

Joon Realty, a Gurugram-based real-estate developer, has recently acquired the Joy City project in Jaipur and rebranded it as Adi Bagh. This acquisition is part of Joon Realty's strategic shift from land-banking to full-scale development. The first phase of Adi Bagh will offer 218 villas in a low-density layout, targeting gross sales of around Rs 2.1 billion.

Despite the dip in new office supply, Hyderabad remains a strong player in the real estate market. The city's IT hub continues to attract major corporations and startups, ensuring a steady demand for office spaces. However, the current slowdown is a cause for concern, and stakeholders are urging developers to accelerate the launch of new projects to meet the growing demand.

The Indian real estate market is highly dynamic, with various cities experiencing different trends. While Hyderabad faces a temporary setback, the overall market remains optimistic. The government's push for infrastructure development and the growing emphasis on smart cities are expected to drive further growth in the coming years.

In conclusion, while Hyderabad's new office supply has dropped significantly, the city's long-term prospects remain strong. Developers and investors are closely monitoring the market to identify opportunities and make strategic moves. The key to sustained growth lies in balancing supply and demand, ensuring that new projects meet the evolving needs of the business community.

Frequently Asked Questions

What caused the 51% drop in Hyderabad's new office supply?

The drop is attributed to a slowdown in new project launches and a shift in focus towards completing and marketing existing developments. Developers are consolidating their efforts rather than launching new projects.

How is Mumbai's office supply performing?

Mumbai has more than doubled its new office supply, reaching 1.80 million square feet, driven by high demand from sectors like IT, finance, and healthcare.

What is Joon Realty's recent acquisition in Jaipur?

Joon Realty has acquired the Joy City project in Jaipur and rebranded it as Adi Bagh. The first phase will offer 218 villas in a low-density layout, with expected gross sales of around Rs 2.1 billion.

Why is the decline in Hyderabad's office supply a concern?

The decline is a concern because it may not meet the growing demand for office spaces in the city, which continues to attract major corporations and startups.

What is the outlook for Hyderabad's real estate market?

Despite the current slowdown, Hyderabad's long-term prospects remain strong. The city's IT hub and the government's push for infrastructure development are expected to drive further growth.

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