GCCs lead office space growth in Hyd

Flex spaces, limited supply and talent depth reinforce city’s positioning

Hyderabad’s office market continues to see steady momentum, driven by Global Capability Centres (GCCs) and flexible workspace operators, even as occupiers adopt a more calibrated approach to expansion.

According to India Office Figures Q1 2026 by CBRE, GCC leasing across India stood at about 9.1 million sq ft in Q1 2026, accounting for nearly 44% of total office absorption. Within this, Hyderabad accounted for a significant share, underscoring its growing role in global occupier strategies.

“GCC leasing has reached record levels, supported by global firms leveraging India’s talent and cost advantages. Cities like Hyderabad continue to see sustained demand as occupiers expand and consolidate operations,” said Abhinav Joshi, head of research, India, CBRE.

The city recorded close to 3 million sq ft of leasing during the quarter, with demand spread across IT corridors such as Gachibowli, Financial District and the extended western belt. Large, contiguous spaces and a relatively stable operating environment continue to make Hyderabad attractive for global firms.

A notable trend is the growing role of flexible workspace operators, who accounted for a significant share of leasing activity. This reflects a broader shift towards “core-plus-flex” strategies, where occupiers combine long-term leased space with flexible capacity to manage uncertainty.

At the same time, supply additions have remained measured. New completions in Hyderabad during the quarter were limited, particularly in Grade A assets, even as demand remained steady. This mismatch is expected to support rental stability and reinforce occupier preference for high-quality developments.

There is also a clear shift towards sustainability. A large share of new supply and leasing activity is concentrated in green-certified buildings, as occupiers increasingly align with ESG goals and long-term cost efficiency.

From a national perspective, India’s office market recorded strong leasing momentum during the quarter, with total absorption crossing 20 million sq ft. While Bengaluru, Delhi-NCR and Mumbai led in overall volumes, Hyderabad continues to stand out for its consistent share in GCC-led demand.

The city’s positioning is supported by a combination of factors—availability of skilled talent, competitive costs, established IT ecosystem and the ability to accommodate large-format requirements.

Going forward, demand is expected to remain anchored by GCC expansion, particularly in areas such as digital engineering, analytics and AI-led functions. Flexible workspaces are also likely to continue playing a key role in occupier strategies.

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