Hyderabad: Hyderabad’s commercial real estate market continued to show strong growth during the third quarter of 2025, driven by rising office leasing activity, higher rentals, improving retail demand, and robust residential launches, according to a Cushman & Wakefield Q3 2025 market snapshot.
The report highlights sustained demand across office, retail and residential segments, with western and southern parts of the city emerging as key growth drivers.
Office Leasing Crosses 2.83 Million Sq Ft
Office leasing activity in Hyderabad remained healthy during Q3 2025, with gross leasing volume (GLV) reaching 2.83 million square feet.
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Net absorption stood at 1.42 million sq ft
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The leasing demand was led by:
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IT-BPM sector (30%)
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Flexible workspaces (20%)
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This reflects continued demand for Grade-A office spaces, particularly from technology firms and flexible workspace operators.
Office Rentals Rise; Madhapur Leads Growth
The report notes a steady rise in office rentals across the city:
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2% quarter-on-quarter (q-o-q) increase
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15% year-on-year (y-o-y) growth
Rental appreciation was largely driven by Madhapur, reaffirming its position as one of Hyderabad’s most sought-after commercial office micro-markets.
Retail Leasing Improves; Suburban Areas Drive Demand
Retail real estate activity also witnessed an improvement during Q3:
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Quarterly retail leasing reached 0.51 million sq ft
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This marked a 3.5% year-on-year increase
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Year-to-date (YTD) retail leasing stood at 2.04 million sq ft
Suburban locations accounted for 42% of total retail leasing volumes, with demand led by areas such as Kompally, Nallagandla, and the Financial District.
Residential Launches Touch 10,101 Units
The residential real estate segment recorded strong supply activity:
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10,101 residential units launched in Q3 2025
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West Hyderabad contributed 39% of new launches, driven by:
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Kollur
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Nallagandla
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Puppalaguda
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South Hyderabad accounted for 32%, led primarily by Rajendranagar
High-End Housing Dominates New Supply
The report highlights a clear shift toward premium housing:
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The high-end residential segment accounted for 63% of new launches
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Demand was strongest in:
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Nallagandla (West Hyderabad)
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Rajendranagar (South Hyderabad)
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This trend indicates growing buyer interest in larger homes, premium amenities, and well-connected locations.
Outlook Remains Positive
Overall, Hyderabad’s real estate market displayed resilience and steady expansion during Q3 2025. Strong office absorption, rental growth in prime micro-markets, improving retail leasing, and sustained residential launches point toward continued confidence among occupiers, developers, and investors.
The Cushman & Wakefield snapshot positions Hyderabad as one of India’s most dynamic commercial real estate markets, supported by its technology ecosystem, infrastructure growth, and expanding residential corridors.
