Hyderabad, Feb. 5 -- Hyderabad's office market is entering its next growth phase, backed by steady leasing demand, improving vacancy trends, and consistent rental appreciation, according to ICRA. The city is expected to see about 18-19 million square feet of new Grade-A office supply over the late FY2026-FY2027 period, with nearly a quarter of the upcoming space already pre-leased-an indicator of sustained occupier confidence despite global economic uncertainties.

Leasing activity has remained resilient across India through 9M FY2026, and Hyderabad has been among the stronger performers. During the period, the city added 8.4 msf of fresh Grade-A space, while net absorption stood slightly higher at 8.5 msf, largely driven by continued dem...