Hyderabad GCC Boom May Add 8–12 Mn Sq Ft of Office Demand Over Next 3–5 Years

Hyderabad’s expanding global capability centre (GCC) ecosystem could generate 8–12 million sq ft of additional office demand over the next three to five years, as multinational companies increase investments in technology, engineering, BFSI, life sciences, and other high-value functions, according to a report by Anarock Research & Advisory and FICCI.

The city could add 50–70 new GCCs over the period, potentially generating more than 75,000 high-skilled jobs. The report also estimates 2–3 million sq ft of potential demand for flex and managed workspaces, particularly across western Hyderabad and established IT corridors.

Hyderabad currently has 515+ GCCs employing more than 3 lakh professionals, accounting for nearly 20% of India’s GCC base. The city added more than 70 GCCs in FY25, the highest among the major GCC hubs, compared to 30–35 additions in Bengaluru, 15–20 in Pune, and 12–15 in Chennai.

Anuj Puri, Chairman of Anarock Group, said the expansion is already driving higher commercial real estate demand.

“This GCC expansion is already translating into significant real estate demand in the city. The report highlights that GCC office leasing in Hyderabad increased from 1.9 million sq ft in 2021 to 4.5 million sq ft in 2025, while the city recorded 3.05 million sq ft of GCC absorption in H1 2026 alone. The sustained leasing momentum reflects the deepening of Hyderabad’s GCC ecosystem and the increasing preference of global enterprises to establish larger and more sophisticated operations in the city,” he said in a statement.

The expansion is also coinciding with a broader shift in the nature of GCC operations. Companies are increasingly setting up functions spanning AI and machine learning, cloud engineering, product development, cybersecurity, financial analytics, fintech, drug development analytics, clinical data, chip design, R&D, embedded systems, and digital transformation.

“Hyderabad’s GCC proposition is broadening well beyond conventional IT-ITeS functions. Technology and software remain core demand drivers, but the ecosystem has expanded significantly across BFSI, pharma and life sciences, semiconductors, aerospace and defence, automotive and engineering, healthcare, consumer and retail, and media and sports technology,” V V Rama Raju, Chairman, FICCI Telangana State Council and Founder and Managing Director of Gaja Engineering, noted, adding that Hyderabad’s GCC base is becoming more diversified.

Hyderabad currently has around 125 million sq ft of Grade A office stock, accounting for nearly 15% of India’s Grade A office inventory. Another 36 million sq ft of supply is expected to enter the market over the next few years.

Net office absorption reached 8.5 million sq ft in 2025 and 5.2 million sq ft in H1 2026, while vacancy declined from 26.3% in 2025 to 23.5% in the first half of 2026.

Average office rents in the city are around ₹75 per sq ft per month, below the pan-India average of ₹96 per sq ft, according to the report, giving Hyderabad a cost advantage over several competing GCC destinations.

The city has an estimated 1 million IT workforce and more than 4 lakh STEM graduates annually, according to the report.

The HITEC City-Gachibowli-Financial District-Kokapet corridor is expected to remain the primary driver of office expansion, supported by existing Grade A supply, infrastructure, and access to talent.

The report said the shift from traditional support operations towards R&D, engineering, analytics, digital, and corporate functions could further strengthen Hyderabad’s position as a global innovation and decision-making hub.