Knight Frank Report: Hyderabad emerges as Global office hub, luxury homes lead
HYDERABAD: Hyderabad’s real estate scene is thriving, with office spaces attracting global attention and homes appealing to the city’s elite. With tight supply, steady demand, and rising rents and prices, the city is set for a vibrant year. Knight Frank India’s latest report notes Hyderabad’s strong growth and solidifying market structure, driven by international office interest and a surge in luxury homebuyers.
The city’s office market wrapped up 2025 on a high note. It recorded annual leasing of 11.4 million square feet, which is a 10% increase from last year. This was the second-highest volume ever, just behind the record set in 2019. The second half of 2025 saw 5.5 million square feet of leasing activity, up 4% year-on-year, indicating steady demand throughout the year.
A key highlight is the shifting occupier profile. Global Capability Centres (GCCs) emerged as the dominant force, accounting for 50% of total leasing in H2 2025, up from 38% a year earlier. Major global firms such as Charles Schwab Corporation, Warner Bros. Discovery, Randstad, Goldman Sachs, and ServiceNow drove large-scale transactions during this period.
Meanwhile, the flex space segment expanded its presence, contributing 25% of leasing, while IT firms staged a comeback with a 42% year-on-year increase in transaction volumes.
Further, sustained demand and constrained new supply, which fell 72% year-on-year to 4.3 million square feet, pushed average office rents up 10% to Rs 77 per square foot per month. Vacancy rates dropped by 616 basis points to 12.1% in H2 2025.
luxury homes lead housing sales
Notably, prime locations such as HITEC City and the Financial District commanded premium rents ranging between Rs 70 and Rs 120 per square foot per month.
Commenting on the same, Joseph Thilak, National Director, Occupier Strategy and Solutions (Hyderabad & Chennai), Knight Frank India, said, “Hyderabad’s office market has displayed exceptional performance… The dominance of Global Capability Centres, which now accounts for half of the city’s office transactions, underscores its evolution into a strategic hub for high-value global operations.”
The residential sector in Hyderabad saw stable, demand-led activity with annual sales reaching 38,403 units, a 4% year-on-year increase. The average price per square foot rose 13% to Rs 6,721, fuelled by a rising share of premium developments.
The most striking trend is the definitive shift towards high-value homes. In H2 2025, properties priced above Rs 1 crore accounted for a dominant 71% of total sales, up from 63% in H2 2024.
Further analysis revealed, the Rs 1–2 crore segment remained the largest, with a 44% sales share. The Rs 2–5 crore category saw the sharpest jump, from 13% to 22%. And affordable segments continued to shrink, with homes below Rs 50 lakh making up just 4% of sales.
Luxury homes priced between Rs 10–20 crore recorded the fastest turnover, with a Quarters-to-Sell metric of just 1.1 quarters, indicating a strong investor and end-user appetite.
Joseph Thilak added, “The Hyderabad residential market is undergoing a profound structural shift where premiumization is no longer a trend but a dominant reality reflecting the rising disposable incomes and evolving lifestyle aspirations of the city’s homebuyers.”
