Hyderabad clocks its highest quarterly office transactions in 5 years in Q12025

HYDERABAD: The city saw its highest office transactions in a single quarter over the last five years in the first quarter of 2025, with 4 million sq ft of office space being absorbed during the quarter. This also positioned Hyderabad as the city with the second-highest office transactions during the quarter, after Bengaluru, which clocked 12.7 msft during the quarter, as per Knight Frank India’s latest report.

In Q1 of 2024, Hyderabad recorded 3 msft of office transactions, while Bengaluru had 3.5 msft of office transactions, the India Real Estate: Office and Residential Report (Jan-Mar 2025) released by Knight Frank said. Pune and Mumbai, with 3.7 msft and 3.5 msft, also set new quarterly transaction records.

While office transactions rose 31% over last year in Hyderabad, the average transacted rents also saw a 9% rise over the same period of last year to Rs 72 per sq ft per month.

According to Knight Frank, third-party IT services accounted for 1.9 msft or about 49% share of the total transactions during the quarter, followed closely by global capability centres (GCCs) at 1.6 msft or 41% of the total transactions during the quarter. After these two, flex space operators came a distant third with just 2.6 lakh sq ft of office space uptake or 6% of the total absorption during the quarter.

Joseph Thilak, National Director, Occupier Strategy and Solutions, Knight Frank India, said Hyderabad’s commercial market demonstrated remarkable strength in Q1 of 2025, fuelled by strong leasing activity by third-party IT firms and GCCs, which put the city among the top commercial transaction hubs in the country.