Hyderabad is India's most expensive GCC office market, commands 15% premium

Hyderabad: Hyderabad has emerged as India's most expensive office market for Global Capability Centres (GCCs), with multinational companies paying a 15% premium over other occupiers for office space, according to an IIM Bangalore-CRE Matrix GCC Commercial Property Rental Index (GCC-CPRI).

The city topped the index with a score of 212.1 in the January-March 2026 quarter, ahead of Pune (210.7) and Bengaluru (190), reflecting strong demand from global companies setting up or expanding their capability centres.

The report comes at a time when Hyderabad continues to attract new GCC investments across sectors such as technology, pharmaceuticals, engineering and financial services. A recent Cushman & Wakefield report showed that Hyderabad's average stock-weighted office rent rose 11.6% year-on-year to Rs 92.2 per sq ft per month in the January-March quarter, while rentals in Madhapur, the city's largest office micro-market, were even higher at Rs 105.5 per sq ft per month, driven by limited supply of Grade A office space and sustained demand from occupiers.


While Hyderabad recorded the highest index, Pune saw the biggest rental premium, with GCCs paying around 21% more than non-GCC occupiers for comparable office space. Bengaluru, India's largest GCC hub, continued to dominate in terms of overall scale, posting a GCC-CPRI of 190 and a three-year growth rate of 1.6%.

"GCC occupiers lease larger offices, sign longer contracts and typically have higher building specifications than other tenants. This has made them an important driver of India's office market," said Abhishek Kiran Gupta, co-founder and CEO of CRE Matrix.

The report also highlighted the growing importance of western India. Navi Mumbai recorded the highest three-year rental growth among major office markets at 13.4%, while Mumbai and Thane also posted healthy rental growth as more GCCs explored the region.

Among micro-markets, Mumbai's Central Suburbs and Chennai's Northern Suburbs saw rental growth of over 22% over the past three years, driven by demand for well-connected Grade A office parks.

The GCC-CPRI has been developed jointly by IIM Bangalore and CRE Matrix, which they claim is India's first rental index dedicated to tracking office rents paid by GCCs and is based on transaction-level data covering nearly 1 billion sq. ft. of office space, more than 2,000 commercial assets and over 19,000 lease transactions.