Hyderabad : Knight Frank India, a leading international property consultancy, in its latest report- India Warehousing Market 2025, cited that Hyderabad’s warehousing market recorded transactions of 3.4 mn sq ft in 2025, which in 2024 was 3.5mn sq ft, reflecting a dip of 5% year-on-year (YoY). While transaction volumes softened slightly compared to the previous year, the market continues to demonstrate stability, supported by strong occupier interest, sustained infrastructure development, and a steady pipeline of active RFPs across key sectors.
Grade A warehouses represented 55% of overall transactions, underlining occupiers’ continued preference for high-quality, compliant logistics infrastructure.
INDUSTRY SPLIT OF TRANSACTION VOLUMES
Manufacturing dominates demand as industrial share rises, reinforcing production-led warehousing growth.
With respect to industry-split of transaction volume, 3PL and Other manufacturing segments remained the primary demand drivers, collectively accounting for 66% of total leasing activity, followed by E-commerce at 21%. Space absorption during the year was primarily driven by warehousing demand, which accounted for 92% of total transactions in 2025. Industrial activity, including light manufacturing and assembly operations within warehousing parks, constituted the remaining 8%. The dominance of storage and logistics functions signals Hyderabad’s growing importance as a regional distribution hub.
Source: Knight Frank Research
Notes:
· Other Manufacturing – These include all manufacturing sectors (automobile, electronics, pharmaceuticals, etc.) except FMCG and FMCD.
· Miscellaneous – These include services such as telecom, real estate, document management, agricultural warehousing and publishing.
CLUSTER SPLIT OF TRANSACTION VOLUMES
Medchal cluster in North Hyderabad remained the city’s dominant warehousing hub accounting for 60% of total transactions in 2025, the Medchal cluster in North Hyderabad remained the city’s dominant warehousing hub, driven by its strategic location along NH-44 and proximity to the Outer Ring Road. The Shamshabad cluster in South Hyderabad contributed 30% of annual absorption, supported by its access to the Rajiv Gandhi International Airport and the Aerotropolis, with Grade A assets comprising 61% of activity. Meanwhile, the Patancheru–Sangareddy cluster in West Hyderabad accounted for the remaining 10%, continuing to attract manufacturing, pharma and E-commerce occupiers due to its strong connectivity along the Mumbai-Hyderabad Highway.
Source: Knight Frank Research
Joseph Thilak, National Director- Occupier Strategy and Solutions (Hyderabad & Chennai), Knight Frank India said, “While 2025 witnessed a measured pace of leasing, the fundamentals of the Hyderabad warehousing market remain intact. Strong infrastructure connectivity, sectoral diversification, rising demand from pharmaceuticals, electronics, and renewable energy industries, and increasing institutional-grade supply position the city for sustained, long-term growth. Hyderabad continues to evolve as a strategic logistics gateway for South and Central India, with steady investment interest and occupier expansion expected to drive the next phase of growth.”
HYDERABAD: LAND RATE AND RENTS
In 2025, the warehousing market of Hyderabad recorded the the weighted average rent increased from INR 20.7/sq ft/month in 2024 to INR 21.5/sq ft/month in 2025, marking a 4% YoY growth. The rental value in Grade A warehouse is the highest in the micro market of Patancheru cluster at INR 24-28 /sq ft/month.
Warehouse Cluster | Location | Land Rate | Grade A | Grade B | |||||
| (INR mn/acre) | Rent in INR/sq ft/month | Rent in INR/sq ft/month | |||||||
| Medchal Cluster | Medchal | 30-50 | 22-24 | 18-21 | |||||
| Devaryamjal – Gundlapochampally | 35-60 | 23-25 | 17-21 | ||||||
| Kandlakoya | 35-60 | 23-25 | 17-21 | ||||||
| Yellampet | 30-50 | 22-24 | 17-21 | ||||||
| Shamirpet | 30-50 | 22-24 | 17-21 | ||||||
| Patancheru Cluster | Patancheru Industrial Area | 40-70 | 24-28 | 18-22 | |||||
| Rudraram | 30-60 | 23-26 | 18-21 | ||||||
| Pashamylaram | 35-60 | 23-26 | 18-21 | ||||||
| Edulanagulapally | 30-60 | 23-26 | 18-21 | ||||||
| Sulthanpur | 35-60 | 23-26 | 18-21 | ||||||
| Shamshabad Cluster | Aerotropolis | 40-60 | 22-26 | 18-21 | |||||
| Srisailam Highway | 40-60 | 22-25 | 18-20 | ||||||
| Bongloor | 40-60 | 22-25 | 18-20 | ||||||
| Kothur | 35-50 | 22-26 | 18-21 | ||||||
| Shadnagar | 35-50 | 22-25 | 18-20 |