Net absorption in Q4 2025 was driven by newly completed supply in the Prime Suburbs

• In Q4 2025, Hyderabad recorded a robust net absorption of 0.55 million sq ft, primarily driven by significant leasing activity at the newly completed Lakeshore Gateway Mall in Prime Suburbs. This brought the city’s annual net absorption for 2025 to 1.05 million sq ft.
• Gross leasing volumes remained healthy in Q4 2025, reaching 1.01 million sq ft and marking a 44.6% q-o-q growth, bringing annual 2025 gross leasing volumes to 2.91 million sq ft.

The Prime Suburbs sees a new mall completion of 1.1 mn sq ft

• Lakeshore Gateway Mall became operational in the Prime Suburbs in Q4 2025, adding 1.1 million sq ft of new supply and taking the city’s total annual supply in 2025 to 2.15 million sq ft.
• Hyderabad has a healthy supply pipeline in the coming years, with the expected influx of new supply set to marginally increase vacancy levels.

Capital values and rents show an upward trend during the year

• In Q4 2025, overall rents rose 6.1% q-o-q and 8.3% y-o-y, driven by strong growth in the Prime Suburbs, where rents increased 6.8% q-o-q as Grade A mall completions commanded rental premiums.
• Overall capital values also rose sharply both q-o-q and y-o-y, driven again by the Prime Suburbs. Yields fell by 10 bps q-o-q.

Outlook: Leasing momentum is expected to remain healthy

• A healthy supply pipeline in 2026 is expected to keep leasing momentum strong, with retailers actively occupying space and expanding their presence.
• The entry of new international brands and the expansion of domestic retail chains introducing new formats are expected to further boost leasing momentum in the coming months.