Hyderabad’s commercial real estate sector saw a surge in the first quarter of 2025, fuelled primarily by the expansion of third-party IT services. According to Knight Frank India’s latest report, ‘India Real Estate: Office and Residential (January – March 2025)’, the city recorded 4 million square feet of office space transactions, a 31% year-on-year (YoY) growth, the highest quarterly transaction volume in five years, as per the report.
Third-party IT services dominated office space leasing, accounting for 49% of the total transactions in Hyderabad. The sector’s expansion reflects the growing demand for outsourced IT solutions and the city’s appeal as a key technology hub. Following closely, Global Capability Centres (GCCs) leased 1.6 million square feet, securing a 41% market share.
As per the report, on the residential front, the market experienced a slight decline in sales, with 9,459 units sold in Q1 2025, a 1% drop YoY. New launches also dipped by 4% YoY, with 10,661 units introduced during the quarter. Despite the moderation in sales, housing prices in Hyderabad continued to rise, with the average weighted price increasing by 9% YoY to ₹ 6,164 per square feet.
The residential segment saw the highest demand in the ₹ 1 to 2 crore price bracket, which accounted for 4,257 units. However, the ₹ 2 to 5 crore category registered a growth of 14% YoY.
“Hyderabad’s commercial market demonstrated remarkable strength in Q1, fuelled by strong leasing activity from third-party IT firms and GCCs, placing the city among the top transaction hubs. While the residential segment saw a marginal slowdown, the premium housing category exhibited strong momentum, underscoring resilient buyer confidence and the city’s evolving real estate dynamics,” said Joseph Thilak, National Director, Occupier Strategy and Solutions, Knight Frank India.
Published – April 03, 2025 08:21 pm IST
