Market Intelligence
Hyderabad office leasing, H1 2026
Net absorption held, vacancy edged up and rents were flat. The more interesting number is where the leasing happened, and what that implies for residential demand over the next three years.
WENS Research · 1 August 2026 · 2 min read
Hyderabad recorded 6.1 million sq.ft of net office absorption in the first half of 2026, roughly flat against the same period last year. Vacancy across Grade A stock rose from 8.4% to 9.0%, reflecting completions rather than move-outs. Headline rents were unchanged.
A flat half is not a weak half in a market that has added supply at this rate.
Concentration
| Submarket | Share of absorption | Vacancy |
|---|---|---|
| Financial District | 41% | 9.0% |
| Gachibowli | 27% | 7.6% |
| Madhapur / HITEC City | 22% | 6.1% |
| Other | 10% | 14.2% |
Ninety per cent of absorption landed in three contiguous submarkets. The outer office locations that were launched on the assumption of decentralisation continue to carry vacancy at more than double the core.
Why residential buyers should care
Office leasing is the leading indicator for residential demand in this city, on a lag of roughly eighteen to thirty months. A lease signed today becomes a fit-out, then a headcount, then a housing requirement within a defined commute.
The concentration of leasing in the western core is therefore an argument for residential markets within a reasonable commute of that core — Tellapur, Kokapet, Mokila, Narsingi — and an argument against residential schemes priced on the assumption that employment will decentralise.
“Office leasing tells you where people will need to live, about two years before they need to live there.”
- office
- leasing
- commercial
