Hyd strengthens GCC office market position

City posts 24% growth in net leasing as global capability centres drive office demand: 

Property Pulse

Hyderabad reinforced its position as one of India's fastest-growing office markets in the first half of 2026, recording a 24 per cent year-on-year increase in Grade A net office absorption as Global Capability Centres (GCCs) continued to expand their footprint, according to an  an Anarock Research report.

The city recorded 5.2 million sq. ft. of net office leasing during H1 2026, up from 4.2 million sq. ft. a year earlier. GCCs accounted for 48 per cent of Hyderabad’s 6.4 million sq. ft. gross office leasing, highlighting the city's growing importance as a preferred destination for multinational companies establishing engineering, technology, finance and digital operations.

Anuj Puri, chairman, Anarock Group, said GCC expansion reflects a structural shift in India's office market, with multinational companies increasingly choosing India to house core business functions. He attributed the trend to the country's skilled talent pool, operational efficiency and mature commercial real estate ecosystem.

Nationally, GCCs leased 19.2 million sq. ft., accounting for 45 per cent of the 42.6 million sq. ft. gross office leasing across the top seven cities during H1 2026, compared with 41 per cent in the corresponding period last year.

Hyderabad and Bengaluru together accounted for 49 per cent of the country's total net office leasing, underlining the continued dominance of southern markets. Bengaluru led GCC leasing with a 70 per cent share, followed by Chennai at 55 per cent and Hyderabad at 48 per cent.

The report also noted that Hyderabad’s office vacancy declined from 26.6 per cent to 23.5 per cent, while average office rentals increased 10 per cent year-on-year. Anarock expects demand from GCCs, flexible workspace operators, BFSI and manufacturing occupiers to continue supporting office leasing across major markets.

GCC momentum

• GCCs account for 48% of Hyderabad's gross leasing.
• Net office absorption rises 24% to 5.2 mn sq. ft.
• Hyderabad and Bengaluru contribute 49% of national net leasing.
• GCCs lease 19.2 mn sq. ft., or 45% of India's total office absorption.
• Hyderabad office rentals increase 10% year-on-year.
• Office vacancy declines to 23.5%.