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Hyderabad GCC boom to add about 8-12 million sq ft office demand over the next 3-5 years

Hyderabad’s rapidly expanding Global Capability Centre (GCC) ecosystem is expected to result in an additional demand for an additional 8-12 million sq ft of office space over next three-five years.

Current Grade A office stock in Hyderabad stands at about 125 million sq ft, comprising nearly 15 per cent of India’s inventory, with another 36 million sq ft of new supply pipeline over next few years, according to a Anarock-FICCI report.

At present, with 515 GCCs employing more than 3 lakh professionals, Hyderabad now accounts for about 20 per cent share of total GCCs in India. The city added 70 new GCCs in financial year 2025 (FY25) alone – the highest among all top cities – followed by Bengaluru (30-35 additions), Pune (15-20 additions), and Chennai (12-15 additions).

“This GCC expansion is already translating into significant real estate demand in the city. The report highlights that GCC office leasing in Hyderabad increased from 1.9 mn sqft in 2021 to 4.5 mn sq ft in 2025, while the city recorded 3.05 mn sq ft of GCC absorption in H1 2026 alone. The sustained leasing momentum reflects the deepening of Hyderabad’s GCC ecosystem and the increasing preference of global enterprises to establish larger and more sophisticated operations in the city,” Anuj Puri, Chairman at Anarock Group said.

Leading global enterprises have established or expanded operations covering functions such as Artificial Intelligence/Machine Learning (AI/ML), cloud engineering, product development, cybersecurity, financial analytics, fintech, regulatory operations, drug development analytics, clinical data, chip design, Research & Development (R&D), embedded systems and digital transformation.

This sectoral diversification is making Hyderabad less dependent on any single occupier segment while simultaneously increasing the quality and complexity of office demand.

“Hyderabad’s GCC proposition is broadening well beyond conventional IT-ITeS functions,” says V V Rama Raju, Chairman, FICCI Telangana State Council and Founder & Managing Director, Gaja Engineering.

“Technology and software remain core demand drivers, but the ecosystem has expanded significantly across BFSI, pharma and life sciences, semiconductors, aerospace and defence, automotive and engineering, healthcare, consumer and retail, and media and sports technology,” he added.

Despite office completions moderating from a peak of 17.1 million sq ft in 2022 to 3 million sq ft in first half of 2026 (H1 2026), occupier demand has remained resilient. Net office absorption stood at 8.5 million sq ft in 2025 and 5.2 million sq ft in H1 2026. At the same time, vacancy declined from 26.3 per cent in 2025 to 23.5 per cent in H1 2026.

The city’s average office rental value currently stands at about ₹75 per sq ft per month, below the pan-India average of ₹96 per sq ft per month. The report highlights that the city has an estimated 1 million IT workforce and more than 4 lakh Science, Technology, Engineering, and Mathematics (STEM) graduates annually. Prime office rents remain below Bengaluru.

The city also benefits from a reported 15-day guaranteed approval timeline for eligible processes under Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS).

The western corridor, comprising HITEC City, Gachibowli, Financial District and Kokapet, is expected to remain the principal growth engine.