Here’s How Location Impacts the Value of Commercial Rentals in Hyderabad

Commercial rental values in Hyderabad “premium office space for rent in Hyderabad”, like any growing metro, are closely tied to location drivers. The drivers aren’t simply about ‘where the building is located.’ The drivers are what surrounds the building. An area with access to metro services, proximity to business districts, and vibrant surroundings will automatically demand higher rental rates and greater rental productivity. Businesses prefer areas that are accessible to clients or employees and where supporting infrastructure such as cafes, banks and transport is close by. For example, a property in a CBD or tech corridor will always command more than a property in an obscure suburb, even if it has the same square footage. 

In Hyderabad, commercial rents depend on connectivity, footfall, and growth. Prime areas like HITEC City cost more, while less connected zones are cheaper. The right location is a smart investment. This is especially true for those seeking premium office space for rent in Hyderabad, where value aligns closely with visibility and long-term potential.

Micro-Markets Driving Hyderabad’s Commercial Growth

The western area of Hyderabad continues to lead current commercial activity. Gachibowli, HITEC City, Madhapur, & Kokapet remain at the forefront of importance, especially in recent times, from the IT and global capability centres. Rentals vary depending on project quality and location, but regardless, according to a recent 2025 article by Address Advisors, this region denotes nearly 80% of the city’s office stock, with current leasing activity being strong, and the vacancy rate in certain projects remains tight.

Jubilee Hills:  Redefining Commercial Luxury in Hyderabad

Jubilee Hills is quietly establishing itself as a preferred area for premium commercial use. While rental values vary depending on the project and location, the area continues to attract businesses looking for a more refined and distinctive setting. 

With its celebrity presence and premium social infrastructure, Jubilee Hills, along with its proximity to Banjara Hills and major IT corridors, makes for a highly desirable location among affluent clientele.

Although supply is still simply not enough, developers are rolling out more office and retail types that offer a lifestyle-oriented appeal as well. Projects are starting to adopt this format, such as ICP 800 Jubilee in Hyderabad, which is an experience-driven project on Road No. 36 created to meet the needs of redefined modern businesses.

Rising Appeal of Peripheral Zones

Peripheral areas like Kokapet and Shamshabad are gaining traction, driven by upcoming infrastructure like Metro Phase II and the Outer Ring Road. With varied rents based on project size and connectivity, these regions attract cost-conscious businesses seeking room to grow. Significant developer investments suggest the western office pipeline could double in the coming years.

City-Wide Market Shifts and Tenant Trends

Hyderabad has seen a sharp rise in overall rentals over the past few years. According to a 2024 report by Infomerics, the market absorbed around 12.5 million sq ft in 2024, and until now, 2025 alone has clocked 4 million sq ft. Tech firms and GCCs lead the way, with GCC leases alone rising by 70% in 2024. Flexible workspaces and retail formats are also on the rise, reflecting the changing needs of occupiers.

What Investors Should Know?

Despite an increasing supply, demand for green-certified and well-connected spaces continues to stay strong. Over 70% of existing leases now involve sustainable buildings. While rental rates in some micro-markets may stabilize due to oversupply, the long-term outlook remains positive, especially in areas where infrastructure improvements are underway, commute times are shorter, and accessibility is enhanced. These factors are expected to drive sustained demand for eco-friendly, well-located spaces, ensuring a bright future for the commercial real estate sector.

Moreover, companies are becoming increasingly conscious of their environmental impact and employee well-being, further boosting the preference for green buildings. Tenants now seek workspaces that align with ESG goals, offer energy efficiency, and promote wellness through better air quality and daylight access. This shift in mindset is not only shaping leasing decisions but also influencing developers to invest in sustainable construction and smarter locations. As a result, commercial real estate in strategic urban pockets is witnessing increased absorption, higher tenant retention, and stronger investor interest, reinforcing the sector’s resilience and growth potential in the years ahead.

The expanding commercial real estate market in Hyderabad is rapidly adapting to accommodate growth and the evolving business climate. The vast expanse of options available for occupiers and investors can be explored from core business districts to emerging corridors of opportunity. With improvements in infrastructure and a shift toward tenant preferences, the city still presents a market that privileges those appealing locations with long-term relevance, efficiency, and value.