Hyderabad, known as the Pearl City of India, has become a business hub for commercial property. This city has greatly transformed over the past decade. This change is driven by robust growth in the technology sector, progressive government policies, enhanced infrastructure, and the influx of numerous international companies.
The city is getting ready for big changes with Metro Phase II coming soon, more Outer Ring Road connections, and huge projects like Pharma City and Hyderabad Airport City. These developments will create new business areas throughout the city. This suggests that 2025 will be a pivotal year for investors in India and other countries seeking to achieve substantial returns by investing in Hyderabad’s property market over an extended period.
So, let’s explore the top commercial real estate trends in Hyderabad. It will help you to make an informed decision for your commercial property investment in this bustling city.
Key Statistics of Commercial Real Estate in Hyderabad (2025)
The following are the latest figures indicating how the commercial property market in Hyderabad is doing based on the latest figures in the market:
- As per the new report published in The Hindu, companies rented 13 million square feet of office space in 2024, making it India’s second-best-performing city after Bengaluru.
- The empty office space rate sits at around 11% in main business areas, which is one of the lowest rates among major Indian cities.
- Technology and software companies want more than 65% of all commercial space.
- According to experts, Hyderabad’s real estate market is expected to expand 10-20% over the next five years.
8 Dominating Commercial Real Estate Trends to Watch in Hyderabad
The business property market in Hyderabad is evolving to include new technology, environmental concerns, and alternative work styles. These are the largest trends that will shape 2025:
1. Emergence of IT Corridor Extensions Beyond Gachibowli & Hitec City
The technology companies of Hyderabad have been operating in Gachibowli and Hitec City over the years. These areas are already overcrowded, and rents are increasing and therefore, developers are coming up with new technology parks like Kokapet, Narsingi, and Tellapur.
This trend is important in 2025 since:
- Better road connections through the ORR and new Metro lines are coming soon.
- Land costs much less compared to the crowded older areas.
- These locations are adjacent to major tech firms yet provide newer properties with newer technology.
Results: These areas will see the addition of new office buildings that will go up by 15-20% by the end of 2025. The rent prices will continue to be 10-15% cheaper than the Gachibowli, and this will enable new firms and smaller-scale technological businesses to afford the rent.
2. Surge in Flexible & Managed Workspaces Across the City
Shared workspaces are no longer just for new small companies. In 2025, major corporations in banking, finance, and technology are opting for flexible office solutions. This helps them spend less on fixed costs and change their office size when needed.
Growth happens because of:
- Work-from-home and office mixing has become normal after the pandemic.
- Companies want satellite offices in the suburbs where their workers live.
- International workspace companies are offering high-end services.
Key figures: According to CBRE, the total amount of flexible workspaces in Hyderabad increased by 34% in 2024, with Hyderabad recording the fastest pace of growth among prime cities. By the end of 2025, the demand will exceed 5 million square feet.
3. Green & ESG-Compliant Commercial Developments Gaining Momentum
Hyderabad builders are coming out with additional internationally recognized LEED and IGBC projects since global firms need green offices. This is being driven by international firms that have strict environmental regulations.
Main features include:
- Air conditioning systems that use less energy.
- Rainwater collection and solar panels.
- Smart lighting and better waste handling systems.
Market insight: Prior to the middle of 2025, there will be green certification of high-quality offices in Hyderabad, totalling over 45%. This makes tenants satisfied and allows owners to receive 8-12% more rent.
4. Growth of Retail Real Estate in Premium Micro-Markets
The office culture of technology companies in Hyderabad is quite high, whereas shopping centres are expanding at a rapid rate in places such as Kondapur, Madhapur, Kukatpally and Uppal. The developers are creating network shopping centers, which incorporate restaurants, luxury shops, and entertainment.
This trend is popular because:
- People have more money to spend and want a city lifestyle.
- More international shopping brands are opening stores.
- Customers would like to find entertainment and shopping combined.
Example: The new development in Inorbit Mall, Cyberabad will be among the largest shopping centers in South India in 2026.
5. Warehousing & Logistics Boom Driven by E-commerce & Pharma
Hyderabad is located well within India and is a leader in medicine production (Genome Valley, Pharma City), which has generated a lot of demand for storage buildings. The emergence of online shopping businesses such as Amazon, Flipkart, and Meesho has increased this demand even further.
Main storage areas:
- Shamshabad (close to the airport)
- Patancheru
- Medchal
Industry numbers: JLL reports that in 2024, there was a 9% increase in top-quality warehouse rents, compared to the previous year. The supply must exceed 15 million square feet in 2025.
6. Demand for Grade A+ Luxury Office Spaces
Multinational firms constructing research and development facilities are looking for luxury office buildings that are high-tech. These are AI-driven building controls, unrestricted access to building entry, and employee health zones.
Demand grows because of:
- Hyderabad is a global hub for technology and medicine.
- Builders compete to attract famous company tenants.
- Companies are willing to pay 15–20% more rent for premium services.
Future view: Premium office spaces will make up 25% of the new office supply in Hyderabad by the end of 2025.
7. Transit-Oriented Commercial Projects (TOCPs) on the Rise
Hyderabad Metro Phase II construction is encouraging builders to design commercial projects that connect directly to metro stations. This makes places easier to reach and cuts travel time, bringing in more tenants.
Benefits include:
- Fewer employees quit because they can travel to work more easily.
- More people visit shops and restaurants in commercial areas.
- Property values go up 8–12% in areas connected to metro lines.
8. Rise of Asset Diversification in Investor Portfolios
In 2025, local investors and big investment companies in Hyderabad will not put money only in office spaces. They are investing in co-living spaces, data centers, and shopping centers, too. This plan helps reduce risks and generates revenue from various growing business areas.
Data information: According to Knight Frank, investment in alternative real estate in Hyderabad grew 28% in 2024. Data centers are becoming a high-profit investment type.
Top Locations Gaining Popularity for Commercial Real Estate Investment in Hyderabad
Hyderabad’s commercial growth is not limited to its old tech areas. These are the fastest-growing smaller markets for 2025:
- Kokapet: New luxury-tech hub with luxurious top-quality spaces.
- Financial District (Nanakramguda): The financial district that is attracting Fortune 500 companies and banking businesses.
- Kondapur: Identical demand for office and shopping real estate.
- Shamshabad: Storage and shipping center near the airport.
- Kukatpally: Shopping and mixed-use development growth hotspot.
Growth Potential of Hyderabad’s Commercial Real Estate Market (2025–2030)
| Asset Class | Current Supply (Million sq. ft.) | Projected CAGR (2025–2030) | Key Drivers |
| Grade A Office Spaces | 85 | 8–9% | IT, BFSI, R&D expansion |
| Retail Spaces | 15 | 10–12% | Premium malls, F&B growth |
| Warehousing | 12 | 11–13% | E-commerce, pharma exports |
| Co-working Spaces | 5 | 14–16% | Hybrid work adoption |
| Data Centers | 1.5 | 18–20% | Cloud & AI infrastructure demand |
Future of Hyderabad’s Commercial Real Estate Market
The next five years will transform Hyderabad from a primarily tech-focused office market into a destination where people can invest in a wide range of property types. Better roads and buildings, international investor interest, and an active state government will keep growth strong. Rent prices are lower than in Bengaluru or Mumbai, and many new buildings are planned across different sectors. This means Hyderabad will stay a commercial real estate leader in India through 2030.
Conclusion
Hyderabad’s rapidly evolving commercial real estate market requires in-depth knowledge and reliable work. Brick & Bolt is the name you can trust in India to complete your commercial construction work in time, within budget, and to the highest quality standards, making it the most reliable technology-driven construction company in India.
Regardless of whether they are constructing new buildings in city centers as office suites or designing shopping arenas that can host quality tenants, their quality and timely project delivery promise to make your investment work harder than it should.
Hemali Patel