Hyderabad’s Office Space to Cross 200 Million Sq Ft by 2030, Led by Tech Firms and Global Companies

Hyderabad is set to witness a significant expansion in its office space, with total stock expected to exceed 200 million square feet by 2030. This growth is being fueled by strong demand from technology companies and Global Capability Centers (GCCs), according to a report by CBRE and the Hyderabad Software Enterprises Association (HYSEA).

Over the past decade, Hyderabad’s office space market has grown rapidly. In 2014, the city had significantly less office space, but by the end of 2024, this figure had reached nearly 137 million square feet. Currently, Hyderabad accounts for about 15% of India’s total office space, and more than 18% of it is green-certified, meaning it follows environmentally sustainable standards.

Hyderabad is a Hotspot for Businesses

The report highlights Hyderabad’s position as a top choice for businesses looking for modern office spaces. In 2024, the city saw strong demand, with companies occupying a total of 12.3 million square feet. This demand is being fueled by industries using advanced technologies such as artificial intelligence (AI), cloud computing, and data analytics. These innovations have strengthened Hyderabad’s position as a hub for Global Capability Centers (GCCs).

The demand for GCC office space in Hyderabad has grown by over 12% from 2022 to 2024, reaching 5.3 million square feet in 2024. This accounts for nearly 43% of the total office space taken up in the city last year. Hyderabad is now the second-largest city in India for GCC leasing, just behind Bengaluru. The city is attracting global corporations from industries like technology, pharmaceuticals, biotechnology, and financial services.

Technology Industry Leading the Demand

The technology sector continues to drive Hyderabad’s office space absorption. In 2024, tech companies accounted for 31% of all office space leased in the city. Historically, the technology sector has made up about 30-35% of Hyderabad’s total office space demand each year.

However, the city’s office space demand is becoming more diverse. The report stated that in 2024, life sciences companies accounted for 21% of office space leasing, while flexible workspace operators (such as coworking spaces) held a 14% share. This indicates that more businesses outside the IT sector are establishing themselves in Hyderabad.

Hyderabad’s Future in Office Space

The report predicts that Hyderabad’s office space will grow 1.5 times over the next five years. With increased investments in AI, robotics, and electric vehicles, combined with the Telangana government’s focus on infrastructure development, Hyderabad is expected to maintain its status as a top business destination.

The city’s strong IT and business services ecosystem, along with a large skilled workforce, makes it an attractive place for GCCs across different industries such as banking, technology, and life sciences. Hyderabad’s flexible real estate policies, affordable housing, and high quality of life are also drawing young professionals, further boosting demand for office spaces.

Additionally, the thriving IT and pharmaceutical sectors continue to fuel growth in both residential and commercial real estate.

Sharing his views on Hyderabad’s transformation, Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE, said:

"Hyderabad’s transformation into a global business and technology hub showcases its ability to adapt and evolve with market demands. The city’s robust infrastructure, diverse occupier base, and skilled talent pool position it as a critical growth centre for India’s real estate landscape."

With Hyderabad’s business ecosystem continuing to expand, the city is well-positioned to remain one of India’s leading destinations for global companies in the coming years.