Bengaluru has been the default answer for Indian commercial real estate for a decade. Hyderabad is making that harder to defend. Here is the head-to-head.
Absorption
Bengaluru leads in absolute absorption (~15m sqft / yr), but Hyderabad leads in growth rate. Hyderabad's absorption is growing faster off a smaller base, and its GCC share is the highest in the country.
Rents
- Bengaluru Grade-A (ORR): ₹90–110 /sqft/month.
- Hyderabad Grade-A (HITEC / Gachibowli): ₹75–95 /sqft/month.
- Bengaluru premium pricing is real, but rent growth is steady in both markets.
Vacancy
Hyderabad's vacancy is structurally lower than Bengaluru's city-level vacancy thanks to concentrated, planned supply (HITEC master-planning). Bengaluru's vacancy varies wildly by corridor.
Exit market
Bengaluru is a deeper exit market — institutional buyers pay up for Grade-A. Hyderabad exits are pricing closer to Bengaluru than they did five years ago, but a 25–50 bps cap-rate premium still exists.
How to decide
- Prefer Bengaluru for depth, premium pricing, and the broadest tenant pool.
- Prefer Hyderabad for slightly higher entry yields and lower vacancy risk.
- Do not treat them as substitutes at the asset level — micro-market still dominates.