Hyderabad leads India office growth

Hyderabad
Hyderabad is set to remain a key growth driver of India’s office market in 2026, with demand and supply each projected at 10–12 million sq ft, reinforcing its position among the country’s top commercial hubs, according to Colliers.

At the national level, India’s Grade A office demand is expected to remain robust at 70–75 million sq ft in 2026, with new supply estimated at 60–65 million sq ft, supported by a diversified occupier base, expansion of Global Capability Centres (GCCs), and growing adoption of flexible workspaces.

Hyderabad, along with Bengaluru and Delhi-NCR, is expected to anchor this growth cycle, benefiting from strong leasing momentum, stable supply additions and continued occupier interest in high-quality assets, said Colliers’  report  ‘2026 India office: Unlocking agility, vitality and flight-to-quality.’

The report notes that Hyderabad continues to benefit from a strong technology ecosystem, cost competitiveness and availability of Grade A office space, making it a preferred destination for GCCs and large occupiers.

“India’s office market is entering a structurally strong growth phase, driven by GCC expansion, flex adoption and a broader occupier base,” said Arpit Mehrotra, Colliers India.

With demand expected to remain firm and vacancy levels gradually easing, India’s office market is poised for sustained expansion, with Hyderabad playing a central role in the next phase of growth, the report said.  

Work spaces 

In Hyderabad, demand and supply both seen at 10–12 msf, indicating a balanced and stable market

India office demand projected at 70–75 msf in 2026

New completions likely at 60–65 msf

 GCCs remain key drivers, expected to account for 30–35 msf, or 40–50% of total leasing

Flex spaces gaining share, likely to contribute 15–18 msf, or 20–25% of demand

Green buildings dominate, nearly 80% of leasing expected in green-certified assets

Over 380 msf of Grade A stock could be future REIT candidates