HYDERABAD: Hyderabad recorded a new peak in office transaction volumes, with leasing touching 5.86 million square feet in the first quarter of 2026, the highest ever for a single quarter, according to Knight Frank India in its latest India Real Estate: Office and Residential (January–March 2026) Q1 2026 report.
Overall office leasing grew 48% year-on-year from 4 million sq ft in Q1 2025, making Hyderabad the second-largest market for office space absorption among eight major cities in the country. Average transacted rents also rose 8% year-on-year to Rs 77.5 per sq ft per month. New office completions stood at 2.3 million sq ft, adding healthy supply to the market.
Global Capability Centres dominated leasing activity, accounting for 43% of total transactions in the city. Despite geopolitical tensions, GCCs leased 2.5 million sq ft and expanded office absorption by 53% from 1.6 million sq ft in Q1 2025.
Third-party services recorded the highest space take-up across the eight leading cities, with 1.7 million sq ft leased, accounting for 29% of the city’s total leasing volume. Flex workspace absorption surged 457% year-on-year to 1.42 million sq ft in Q1 2026 from 0.26 million sq ft in the corresponding period last year.