Hyderabad Real Estate: Office Rents Spike

Office rents in India’s top seven cities increased by 4–8% in 2024, driven by rising demand from new businesses and company expansions. Hyderabad, known for its thriving tech and finance sectors, also saw notable growth, with office rents increasing by 4.4%.

India’s strong consumer base, rapid urbanization, large skilled workforce, and lower operational costs—particularly in tech and finance—are attracting both domestic and international companies to set up offices in the country.

Among Indian cities, New Delhi recorded the highest rent growth at 8.2%, followed by Chennai at 7.7%, Mumbai at 6.7%, Bengaluru at 4.7%, Pune at 4.5%, Hyderabad at 4.4%, and Kolkata at 3.8%. Hyderabad’s continued growth in office rents highlights its importance as a major business hub in India.

In terms of average monthly rent per square foot, Mumbai remains the most expensive at $1.6, followed by Bengaluru at $1.1, Pune at $1, New Delhi at $0.9, and Hyderabad at $0.8—the same as Chennai. Despite its lower average rent, Hyderabad’s office market remains attractive due to its growing business environment and affordable space compared to more expensive cities.

Globally, major office markets showed mixed results in 2024. New York saw a 1.3% decline in office rents, while Shanghai and Hong Kong experienced drops of 6.8% and 6%, respectively. On the other hand, London saw the highest growth internationally at 8.6%, with rents at $8.6 per square foot.

India’s office market continues to grow, with cities like Hyderabad benefiting from urban development, business expansion, and global interest.