Hyderabad GCC boom is expected to drive around 8-12 million sq ft of additional office demand over the next three to five years, as the city’s Global Capability Centre (GCC) ecosystem continues to expand across technology, engineering, BFSI, life sciences and other high-value sectors.
The findings are part of a new report titled ‘Hyderabad: The Rise of a Global Capability Powerhouse’ by Anarock Research & Advisory and FICCI.
The report was unveiled by knowledge partners Anarock at the FICCI India Next Growth Frontier Hyderabad 2035: India’s Global Capability Capital conference held in the city today.
According to the report, GCCs, IT-ITeS firms, BFSI companies, flex operators and allied services are expected to have a significant impact on Hyderabad’s future commercial real estate landscape.
The Hyderabad GCC Boom could generate approximately 8-12 million sq ft of additional office demand over the next three to five years.
The city could also see 50-70 additional GCCs across technology, engineering, BFSI, life sciences, analytics, consulting and digital operations.
In addition, Hyderabad could witness 2-3 million sq ft of potential flex and managed workspace demand, particularly across western Hyderabad and established IT corridors, over the next two to three years.
GCC expansion, technology-led sectors and higher-value corporate functions could potentially generate more than 75,000 high-skilled jobs.
The report also points to greater occupier preference for Grade A, ESG-compliant, amenity-rich and technology-enabled offices, supporting premium rentals for institutional-quality assets.
Hyderabad Emerges as a Major GCC Destination
Hyderabad is rapidly transitioning from a traditional IT-ITeS destination into a diversified global capability powerhouse, with its expanding GCC ecosystem emerging as a major driver of office demand, talent creation and commercial real estate growth.
Currently, Hyderabad has more than 515 GCCs employing over 3 lakh professionals. The city now accounts for nearly 20% of India’s GCC base.
The Hyderabad GCC Boom gained further momentum in FY25, when the city added more than 70 new GCCs, the highest among the major GCC destinations.
This was significantly ahead of Bengaluru, which added around 30-35 GCCs, while Pune added 15-20 and Chennai added 12-15.
The increasing number of GCC additions highlights Hyderabad’s growing attractiveness to multinational enterprises seeking technology, engineering, BFSI, life sciences and other high-value capabilities.
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Anuj Puri, Chairman – Anarock Group, says, “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 Mn sq. ft. in 2021 to 4.5 Mn sq. ft. in 2025, while the city recorded 3.05 Mn 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.”
From Back-Office Destination to Global Hub
The Hyderabad GCC Boom is also being supported by the diversification of the city’s GCC ecosystem beyond conventional IT-ITeS functions.
“Hyderabad’s GCC proposition is broadening well beyond conventional IT-ITeS functions,” says V V Rama Raju, Chairman, FICCI Telangana State Council and Founder & Managing Director, Gaja Engineering.
“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.”
Leading global enterprises have established or expanded operations covering AI/ML, cloud engineering, product development, cybersecurity, financial analytics, fintech, regulatory operations, drug development analytics, clinical data, chip design, R&D, embedded systems and digital transformation.
This sectoral diversification is making Hyderabad less dependent on any single occupier segment while simultaneously increasing the quality and complexity of office demand.
GCC Momentum Boosts Hyderabad Office Market
Hyderabad’s broader office market is already showing signs of a healthier demand-supply balance.
The city currently has approximately 125 million sq ft of Grade A office stock, accounting for around 15% of India’s Grade A office inventory. Another 36 million sq ft of upcoming supply is in the pipeline.
The Hyderabad GCC Boom is taking place even as office completions have moderated from a peak of 17.1 million sq ft in 2022 to 3 million sq ft in H1 2026.
Occupier demand has remained resilient, with net office absorption reaching 8.5 million sq ft in 2025 and 5.2 million sq ft in H1 2026.
At the same time, vacancy declined from 26.3% in 2025 to 23.5% in H1 2026, pointing towards improving utilisation of available office stock.
The city’s average office rental value currently stands at around INR 75 per sq ft per month, below the pan-India average of INR 96 per sq ft per month, providing occupiers with a relative cost advantage.
Talent and Cost Advantage Support GCC Growth
The report further highlights that Hyderabad’s competitive advantage is increasingly based on the combination of talent, cost, sector depth and operating ease.
The city has an estimated 1 million IT workforce and more than 4 lakh STEM graduates annually. Prime office rents remain below Bengaluru, while Hyderabad offers a broader sector mix spanning technology, BFSI, pharma and semiconductors.
The Hyderabad GCC Boom is reflected in the city’s expanding GCC base compared with other major destinations. Hyderabad has more than 515 GCCs, compared with over 880 in Bengaluru, more than 475 in Pune and over 280 in Chennai.
However, Hyderabad recorded more than 70 new GCC additions in FY25, ahead of the 30-35 additions in Bengaluru, 15-20 in Pune and 12-15 in Chennai.
The city also benefits from a reported 15-day guaranteed approval timeline for eligible processes under TS-iPASS, compared with more variable timelines in competing destinations.
Hyderabad GCC Boom to Shape Next Phase of Growth
The city’s evolution is increasingly being shaped by the shift in GCCs from traditional support functions towards R&D, engineering, analytics, digital and corporate functions.
This transition is expected to strengthen Hyderabad’s position as a location for global innovation and decision-making rather than simply a cost-efficient offshore base.
The combination of a deep technology talent pool, competitive occupancy costs, established infrastructure, a growing BFSI and life sciences ecosystem, and expanding Grade A office supply is expected to sustain Hyderabad’s attractiveness to global occupiers.
As GCCs continue to scale and diversify, the Hyderabad GCC Boom is expected to support sustained office demand through 2029, with the western corridor emerging as the city’s strategic commercial cluster.
Western Hyderabad to Remain Principal Growth Engine
The western corridor, comprising HITEC City, Gachibowli, Financial District and Kokapet, is expected to remain at the heart of Hyderabad’s commercial expansion.
These locations combine established Grade A office inventory, infrastructure, talent accessibility and institutional investment. The continued development of the Financial District–Kokapet corridor is also expected to strengthen Hyderabad’s ability to accommodate large-format occupiers.
The Hyderabad GCC Boom is already being reflected in rental values across key micro markets.
In H1 2026, Grade A rents in HITEC City stood at INR 75-115 per sq ft per month, compared with INR 750-110 per sq ft per month in H1 2025.
Madhapur rentals increased to INR 90-110 from INR 85–100 in a month per sq ft, while Gachibowli moved to INR 60-90 from INR 55-85 per sq ft per month.
