Hyderabad’s rapidly expanding global capability centre (GCC) ecosystem is set to generate 8-12 million square feet of additional office space demand over the next three to five years, according to a report by Anarock Research and Advisory and FICCI. The report, titled “The Rise of a Global Capability Powerhouse,” was unveiled at the FICCI India Next Growth Frontier Hyderabad conference on Thursday. The projected growth is expected to bring 50-70 new GCCs to the city and create more than 75,000 high-skilled jobs in the coming years.
The city currently hosts more than 515 GCCs that employ over three lakh professionals, accounting for nearly 20 per cent of India’s GCC base. In FY25 alone, Hyderabad added more than 70 GCCs, significantly outpacing other major cities including Bengaluru which added 30-35, Pune with 15-20, and Chennai with 12-15 new GCCs. This growth trajectory has positioned Hyderabad as a leading destination for global capability centres in India.
GCC leasing activity in Hyderabad has witnessed substantial growth, rising from 1.9 million square feet in 2021 to 4.5 million square feet in 2025. An additional 3.05 million square feet was absorbed by GCCs in the first half of 2026. The demand for Grade A, amenity-rich and technology-enabled offices is expected to remain strong, with flex and managed workspace potentially generating another 2-3 million square feet of demand, particularly in established IT corridors.
The GCC ecosystem in Hyderabad is becoming increasingly diversified across multiple sectors including IT-ITeS, BFSI, pharma and life sciences, semiconductors, aerospace and defence, automotive engineering, healthcare, consumer retail, and media technology. Functions have expanded beyond traditional support roles to include AI and machine learning, cloud engineering, product development, cybersecurity, analytics, R&D and digital transformation. This diversification reflects a broader shift towards more strategic and high-value operations.
Hyderabad currently has about 125 million square feet of Grade A office stock, representing nearly 15 per cent of India’s inventory, with another 36 million square feet in the pipeline. Office completions moderated from 17.1 million square feet in 2022 to about 3 million square feet in 2025. Net absorption stood at 8.8 million square feet in 2025 and 5.2 million square feet in H1 2026, while vacancy rates declined from 26.3 per cent in 2025 to 23.5 per cent in H1 2026.
The western corridor covering Hitec City, Madhapur, Gachibowli, Financial District and Kokapet remains the principal commercial cluster, supported by strong office stock, infrastructure and talent availability. The city’s IT workforce stands at approximately one million, with more than four lakh STEM graduates entering the market annually. Average monthly rentals in Hyderabad stood at Rs 9.75 per square foot, which is below the pan-India average, making it an attractive proposition for companies looking to establish or expand their operations.
