Tech Mahindra's 10-year lease for 4 lakh sq ft in Hyderabad adds to a tightening Grade A office market, signaling long-term confidence in the region's tech hub.
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Tech Mahindra has taken 4 lakh square feet of office space in Hyderabad on a 10-year lease, the property developer said Monday. The block is part of a larger commercial project near the Outer Ring Road, a corridor that hosts many IT parks.
The lease adds to a tightening market for Grade A office space in Hyderabad. Vacancy rates across the city's tech hubs have fallen below 10% in recent quarters, according to property consultants, as occupiers lock in long-term deals before rents climb further.
Tech Mahindra employs roughly 150,000 people globally. The company did not say whether this expansion is for new hires or a relocation of existing teams. Chief executive CP Gurnani has previously flagged plans to consolidate offices in high-demand cities to cut real estate costs, though this lease adds net square footage rather than swapping it.
Hyderabad accounts for about a fifth of Tech Mahindra's India office portfolio, the company said in its annual report. The city's IT corridor has seen renewed leasing activity after a two-year slump driven by remote work.
The project is developed by Phoenix Group, which has delivered 3 million sq ft of office space in the city over the past decade. Completion is scheduled for the second half of 2025.
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