Overview
Hyderabad is positioned to remain one of India’s key office market growth drivers in 2026, with both demand and new supply projected in the 10–12 million sq ft range, according to Colliers. The consultancy’s report, titled "2026 India office: Unlocking agility, vitality and flight-to-quality," places Hyderabad alongside Bengaluru and Delhi-NCR as cities expected to anchor the next phase of the country’s office cycle. The projections underscore Hyderabad’s status among India’s top commercial hubs, supported by strong leasing momentum, stable additions of Grade A space, and continued occupier interest in high-quality assets.
Hyderabad’s projected role
Colliers expects Hyderabad’s office demand and supply to balance in 2026 at roughly 10–12 million sq ft each, reinforcing the city’s role as a preferred destination for large occupiers and Global Capability Centres (GCCs). The report highlights a strong technology ecosystem, cost competitiveness, and abundant Grade A inventory as key factors that continue to attract occupiers to the market.
National context and drivers
At the national level, the report projects India’s Grade A office demand at 70–75 million sq ft in 2026, with new supply estimated at 60–65 million sq ft. Colliers attributes the sustained momentum to a diversified occupier base, continued expansion of GCCs, and the growing adoption of flexible workspaces across the country. Against this backdrop, Hyderabad, Bengaluru, and Delhi-NCR are all identified as markets expected to anchor the broader growth cycle.
Why occupiers favor Hyderabad
According to the report, Hyderabad benefits from a combination of ecosystem depth and cost advantages, alongside a healthy pipeline of high-quality buildings. These elements, together with the availability of Grade A space, support the city’s appeal to GCCs and other large occupiers looking for scalable, competitively priced offices. Colliers also points to continued occupier interest in high-quality assets, which has historically supported strong leasing momentum in the market.
Leasing and supply dynamics
The report frames the upcoming cycle as one characterized by stability in supply additions and active occupier demand, especially for quality assets. In Hyderabad, that balance is reflected in projections that place demand and new supply in a similar range, suggesting a market aligned to expansion plans of large tenants. The emphasis on "flight-to-quality" in the report title signals that higher-grade buildings are likely to remain in focus as occupiers expand or consolidate their footprints.
What this means
For Hyderabad, the projections reinforce its standing among India’s top commercial hubs, underpinned by a technology-led ecosystem and competitive costs that continue to attract occupiers. As companies evaluate growth plans for 2026, Colliers’ outlook indicates that the city can expect sustained leasing interest from GCCs and other large tenants, supported by the availability of Grade A offices. The alignment of demand and supply in the 10–12 million sq ft band also implies a market environment where new, high-quality stock can be absorbed by active requirements.
Caveats and source
All figures cited are projections from the Colliers report referenced by Deccan Chronicle, and they pertain specifically to 2026 expectations. The article does not provide submarket breakdowns, sector-level splits, or methodology details behind the estimates. As a result, while the outlook highlights anticipated strength in Hyderabad, Bengaluru, and Delhi-NCR, the precise distribution of demand across industries, locations within each city, or quarters of the year is not specified in the available summary. Readers should view the numbers as forward-looking estimates that may evolve with economic conditions and occupier strategies, as more granular data and subsequent updates become available.
Occupier trends to watch
Colliers’ assessment emphasizes three overarching, interlinked trends shaping the market into 2026: a diversified occupier base, continued growth in GCCs, and wider use of flexible workspaces. A broader mix of occupiers supports sustained demand, while GCC expansion keeps technology-led requirements prominent in cities with strong technology ecosystems and cost advantages. The growing adoption of flexible workspaces, according to the report, is another important factor supporting demand, as companies seek agility in portfolio planning and high-quality, ready-to-use environments within Grade A buildings.
Role alongside Bengaluru and Delhi-NCR
By grouping Hyderabad with Bengaluru and Delhi-NCR as anchors of the next growth cycle, the report positions these markets as bellwethers for national office performance. Each benefits from strong leasing momentum and steady supply additions, with occupiers showing interest in high-quality assets. Within this trio, Hyderabad’s combination of cost competitiveness and available Grade A stock is cited as a continuing draw for large tenants and GCCs, complementing the strengths of its peer markets.