Cost of renting an office space in Hyderabad

The rapidly expanding metro infrastructure, availability of massive talent pool, ample supply of coworking spaces, and lower floor plate values vis-à-vis other metro cities have made Hyderabad a popular commercial destination globally. Hence, if you too are planning to set up your business in the city, then here are a few micro-markets providing a host of commercial choices across budget ranges.

File photo
File photo

While the work-from-home culture among the young entrepreneurs has taken the industry by storm, a well-established office space still holds high significance as it renders an identity to a business. An office space brings the employees together and allows them to collaborate and discuss the ideas essential for the growth of the business. Hence, if you are looking for a prominent yet relatively affordable commercial market in India, then Hyderabad is a metro city offering a multitude of options for businesses across the spectrum.

Somajiguda

Located along the Raj Bhavan Road, Somajiguda was earlier a peaceful residential market that witnessed a rapid commercial expansion in the last 5-7 years, thanks to its proximity to the famous locales of Begumpet and Punjagutta.

Apart from being a notable automobile hub comprising a host of retail outlets of Honda, Skoda, Volkswagen, Maruti Suzuki, Bajaj and Yamaha, Somajiguda has also observed the expansion of numerous IT/ITeS firms and financial institutions. Some of the well-known companies operating in Somajiguda are ADP, Cavium and GEO Infospace.

Office space leasing rates in Somajiguda, Hyderabad

Type of project

Average Lease rate

Grade A

Rs 55-60 per sq ft

Grade B

Rs 45-50 per sq ft

“The micro-market has a 50-50 ratio of Grade A and Grade B offices. From an infrastructure standpoint, the area houses several reputed healthcare centres, malls and entertainment options. Besides, Somajiguda is also known for its jewellery market and has around 30 stores along the half km stretch,” shares, Ramesh Babu, Property Consultant, Global Realtors.

Begumpet

In contiguity to the mainstream areas of HITEC City and Madhapur, Begumpet has not only acquired a lot of infrastructure traction but commercial expansion as well. It is home to many government and corporate offices. However, the commercial landscape in the area filliped only after the commencement of the Blue Metro Line via Begumpet in 2017. Improved connectivity has triggered the office demand in Begumpet, particularly among the mid-sized firms. Some of the software companies working in the area include Sonata Software, SmartnetIT Solutions, Vertis Group, HTC Global Services and Netcomm IT Solutions Pvt Ltd among the pool of others. 

Office space leasing rates in Begumpet, Hyderabad

Type of project

Lease rate

Grade A

Rs 60-65 per sq ft

Grade B

Rs 50-55 per sq ft

Begumpet is also a famous residential market providing access to many well-maintained and self-sufficient societies, which makes it an ideal destination for companies and businesses. Some of the micro-markets near Begumpet are Uppal, Ameerpet and Nagole.

Madhapur

With the maximum concentration of IT/ITeS and Banking, Financial Services and Insurance (BFSI) firms, Madhapur is a busy corporate area of Hyderabad in the west. The micro-market is home to some of the leading IT/ITeS and Telecom companies from all over the world, including Accenture, TCS, IBM, Dell, Google, Verizon, Deloitte, Convergys and Capital IQ. Hence, if you are planning to rent an office space adjacent to industry giants, then Madhapur is the ideal market; however, the leasing rates here are comparatively higher than Somajiguda and Begumpet.

Office space leasing rates in Madhapur, Hyderabad

Type of project

Lease rate

Grade A

Rs 70-75 per sq ft

Grade B

Rs 60-65 per sq ft

While the Grade A offices occupy about 60 percent of market share in Madhapur, the increased supply of coworking spaces has helped the mid-sized firms and budding businesses to accommodate in the neighbourhood. The average leasing rates in coworking spaces in Madhapur range from Rs 5,000-10,000 per desk. Presently, not only the small commercial players but even multinational companies are exploring shared workspaces as they are cost-effective, well-maintained and offer flexible lease module, evading numerous hassles. While the recent COVID-19 crisis may pose some short-term hurdles for the coworking market, however, the segment is expected to continue strong with some innovations in design and rent models.

Nanakramguda

“Originally a village under Serilingampally Mandal of Ranga Reddy district on the outskirts of Hyderabad, Nanakramguda began experiencing infrastructure and real estate developments after its inclusion in the Greater Hyderabad Municipal Corporation (GHMC) in 2007. The growth was backed by the booming IT sector, which originally started in Madhapur. However, as Madhapur-Gachibowli-Kondapur stretch ran out of developable lands, the focus of the commercial investors shifted to neighbouring areas of Nanakramguda, Goapanapally, Raidurg, Narsingi and Manikonda. The development of new IT parks here has transformed this area beyond recognition. Presently, Nanakramguda is a famous financial district in the city,” shares Babu. 

Office space leasing rates in Nanakramguda, Hyderabad

Type of project

Lease rate

Grade A

Rs 60-65 per sq ft

Grade B

Rs 50-55 per sq ft

The first phase of the district includes TSI Business Park, IT/ITeS centres and Special Economic Zones (SEZs) that offer varied floor plate options to suit the business needs of investors across spectrum. Furthermore, the airport metro line would also boost the demand-supply dynamics as it would run through 10 destinations in the city, including Nanakramguda.

Manikonda

Manikonda spreads over eight km starting from Raidurg to Toli Chowki along Old Mumbai Highway (OMH). It is a site of significant residential and commercial developments. A few leading software companies that have established their headquarters in the area include Cognizant, Infosys, Microsoft India, Genpact, Hitachi and Cyient. Besides, the locality has gained importance due to the Lanco Hills project comprising residential, commercial as well as an IT-SEZ. The Lanco Hills Tech Park is part of the knowledge corridor promoted by the government of Telangana. Currently, the average office space leasing rates in a Grade A building range from Rs 65-70 per sq ft.

Office space leasing rates in Manikonda, Hyderabad

Type of project

Lease rate

Grade A

Rs 65-70 per sq ft

Grade B

Rs 55-60 per sq ft

The key localities bordering Manikonda include Shaikpet, Kondapur, and Gachibowli, the top real estate destinations buzzing with both commercial and residential developments. The proposed Raidurg-Manikonda-Shamshabad metro is also expected to trigger commercial real estate activity under Transit Oriented Development (TOD) policy with L&T.

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