Hyderabad is rapidly moving beyond its identity as a technology destination to emerge as one of India’s important global capability hubs, with Global Capability Centres (GCCs), a strong talent base and a mature office market supporting the city’s next phase of growth, according to a FICCI-Anarock report.
The report, titled “Hyderabad: The Rise of a Global Capability Powerhouse”, says Hyderabad has steadily evolved from being recognised as a strong technology destination into a location for global companies seeking technology, research, analytics, engineering and other specialised functions. Hyderabad now has more than 515 GCCs employing over 3 lakh professionals, accounting for around 20% of India’s GCC base. It added more than 70 new GCCs in FY25, the highest among Indian cities covered in the report.
The report highlights the depth of Hyderabad’s overall business ecosystem. In its foreword, V V Rama Raju, FICCI Telangana State Council Chairman and Founder & Managing Director, Gaja Engineering wrote, “What stands out about Hyderabad is the breadth of capabilities that the city has built over the years.”
The city’s economic base also provides support for this expansion. Telangana recorded a GSDP of Rs 8.90 lakh crore at constant prices, with real growth of 8.5% in FY2025-26. The state’s IT-ITeS exports stood at Rs 3.13 lakh crore in FY2024-25, while Hyderabad accounts for approximately 54% of Telangana’s GSDP, according to the report.
GCC expansion is reshaping the office market
GCCs have become an important demand driver for Hyderabad’s commercial real estate market. GCC office leasing increased from 1.9 million sq ft in 2021 to 4.5 million sq ft in 2025 and had already crossed 3 million sq ft in the first half of 2026. The report says this sustained growth reflects the deepening of Hyderabad’s GCC ecosystem and the increasing use of the city by multinational companies for technology talent and established business infrastructure.
Hyderabad’s overall Grade A office stock stood at about 125 million sq ft, giving the city a 15% share of pan-India Grade A office stock. Average Grade A office rent was around Rs 75 per sq ft per month, compared with a pan-India average of Rs 96 per sq ft per month. The city also had 36 million sq ft of upcoming office supply.
The office market is showing signs of a healthier demand-supply balance. Annual office completions moderated from a peak of 17.1 million sq ft in 2022 to 3 million sq ft in the first half of 2026. At the same time, net absorption remained strong at 8.5 million sq ft in 2025 and 5.2 million sq ft in H1 2026. Office vacancy declined from 26.3% in 2025 to 23.5% in H1 2026.
GCC ecosystem spreads across sectors
Hyderabad’s GCC story is no longer restricted to traditional IT-ITeS operations. The report identifies a broad ecosystem covering technology and software, BFSI, pharma and life sciences, semiconductors, aerospace and defence, automotive and engineering, consumer and retail, healthcare, and media and sports technology.
The functions being undertaken in the city are also becoming more specialised. These include cloud engineering, AI and machine learning, product development, cybersecurity, financial technology, risk analytics, drug development analytics, clinical data, chip design, R&D, embedded systems, digital transformation and supply-chain analytics.
The report identifies talent, cost advantage, BFSI depth, life sciences capabilities, sector diversity and operating ease as key reasons behind Hyderabad’s competitiveness. The city has around 1 million IT workers and more than 4 lakh STEM graduates annually, while the Telangana State Industrial Project Approval and Self-certification System, or TS-iPASS, is reported to offer a 15-day guaranteed approval timeline for eligible processes.
Western Hyderabad remains the key office cluster
The western part of the city is expected to remain central to Hyderabad’s commercial growth. HITEC City, Madhapur, Gachibowli, Financial District and Kokapet are identified as the major office hubs, with the Financial District-Kokapet corridor expected to strengthen further as a destination for large-format occupiers.
The report expects infrastructure-led growth, improved connectivity and continued development of the western corridor to support both occupiers and institutional investors.
Up to 12 million sq ft of additional office demand
The report projects a strong outlook for Hyderabad over the next three to five years. It estimates that the city could attract 50-70 additional GCCs within a year across technology, engineering, BFSI, life sciences, analytics, consulting and digital operations.
This expansion could generate 8-12 million sq ft of incremental office demand over the next three to five years. The report also estimates potential flex and managed workspace demand of 2-3 million sq ft over the next two to three years, particularly across western Hyderabad and established IT corridors.
GCC expansion, technology-led sectors and higher-value corporate functions could potentially generate more than 75,000 high-skilled jobs. At the same time, demand is expected to increasingly favour Grade A, ESG-compliant and amenity-rich offices.
The report says Hyderabad’s evolution is moving the city towards higher-value activities such as research, engineering, analytics, digital operations and corporate decision-making. It expects office demand to remain broad-based across GCCs, IT-ITeS, BFSI, engineering, life sciences, professional services and flexible workspace operators through 2029.
Source: FICCI-Anarock, “Hyderabad: The Rise of a Global Capability Powerhouse.”
