Hyderabad Leads Office Space Vacancies Amid Urban Expansion

Hyderabad tops the list of major Indian cities with the highest office space vacancy at 284 lakh sq ft. This accounts for 17.5% of its total office space, despite a robust supply in recent years. Industry experts anticipate demand growth driven by sectors like GCCs and IT-ITeS.

Hyderabad currently holds the highest office space vacancy among India's major cities, with 284 lakh square feet unoccupied, marking 17.5% of its total office stock, according to real estate consultancy Vestian.

Vestian's data for March 2025 shows a decline in Hyderabad's vacancy rate to 17.5% from a previous 19%, thanks to no new supply entering the market from January to March.

Closely following Hyderabad, Delhi-NCR reports a vacancy of 232 lakh sq ft, or 17%, while Bengaluru and Mumbai exhibit lower rates of 7.5% and 8.3% respectively. Overall, demand for office leasing rose by 34% in Q1 2025.

(With inputs from agencies.)