Hyderabad is rapidly transforming from a traditional IT-ITeS destination into a diversified global capability powerhouse, with its expanding Global Capability Centre (GCC) ecosystem emerging as a key driver of office demand, talent creation and commercial real estate growth, according to a report by Anarock Research & Advisory and FICCI titled ‘Hyderabad: The Rise of a Global Capability Powerhouse’.

The report highlights that GCCs, IT-ITeS companies, BFSI firms, flex operators and allied services could drive approximately 8-12 million sq ft of additional office demand in Hyderabad over the next three to five years.

The city is also expected to witness the addition of 50-70 new GCCs across technology, engineering, BFSI, life sciences, analytics, consulting and digital operations. The expansion could generate over 75,000 high-skilled jobs, while flex and managed workspace demand could reach 2-3 million sq ft, particularly across western Hyderabad and established IT corridors.

Currently, Hyderabad hosts more than 515 GCCs employing over 300,000 professionals, accounting for nearly 20% of India’s GCC base. The city added over 70 new GCCs in FY25, the highest among major GCC destinations including Bengaluru, Pune and Chennai.

According to Anuj Puri, Chairman, Anarock Group, GCC expansion is already translating into strong real estate demand. 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 the first half of 2026.

The report noted that Hyderabad’s GCC ecosystem has expanded beyond conventional IT-ITeS functions, with growing presence across BFSI, pharmaceuticals, life sciences, semiconductors, aerospace and defence, automotive, healthcare, consumer and retail sectors.

The diversification is enabling companies to establish capabilities across artificial intelligence, cloud engineering, product development, cybersecurity, financial analytics, fintech, drug development analytics, chip design, research and development and digital transformation.

Hyderabad currently has approximately 125 million sq ft of Grade A office stock, accounting for nearly 15 per cent of India’s Grade A office inventory, with another 36 million sq ft of upcoming supply.

Despite office completions moderating from 17.1 million sq ft in 2022 to 3 million sq ft in the first half of 2026, demand has remained resilient. Net office absorption stood at 8.5 million sq ft in 2025 and 5.2 million sq ft in H1 2026.

Vacancy levels improved from 26.3 per cent in 2025 to 23.5 per cent in H1 2026, indicating stronger utilisation of available office spaces.

The city’s average office rental value currently stands at around Rs 75 per sq ft per month, compared with the pan-India average of Rs 96 per sq ft per month, providing occupiers with a cost advantage.

The western corridor, including HITEC City, Gachibowli, Financial District and Kokapet, is expected to remain the centre of Hyderabad’s commercial expansion. These locations offer established office infrastructure, talent accessibility and institutional-grade developments.

Grade A office rentals in HITEC City stood at Rs 75-115 per sq ft per month in H1 2026, while Madhapur rentals increased to Rs 90-110 per sq ft per month and Gachibowli reached Rs 60-90 per sq ft per month.

The report highlighted that Hyderabad’s next phase of growth will be driven by the transition of GCCs from traditional support operations towards research, engineering, analytics, digital capabilities and corporate functions.

With a strong talent pool, competitive occupancy costs, expanding Grade A office supply and growing sector diversity, Hyderabad is expected to remain a preferred destination for global enterprises, supporting sustained office demand through 2029.