Hyderabad : Knight Frank India’s latest facilities management (FM) cost assessment highlights that the small office occupiers in Hyderabad are incurring 35% higher operational cost than large office spaces in Hyderabad. For office spaces between 100,000–300,000 sq ft, facilities management costs stand at INR 15.41 per sq ft for standard operations and INR 17.25 per sq ft for 24×7 operations. For occupiers operating in the 10,000–30,000 sq ft category, facilities management costs in Hyderabad stand at INR 23.48 per sq ft for standard 12-hour, 5-day operations and rise to INR 25.32 per sq ft for 24×7 operations.
As per Knight Frank’s India Real Estate Report Q1 2026, large office spaces constituted 75% (4.4 mn sq ft) of the overall office transaction volumes (5.9 mn sq ft) in Hyderabad market.
Operations cost across office spaces in Hyderabad
| Small Office | ||||
| Office area Range | Facility Management Services | Security Services | ||
| Site Operations | 12 hrs. x 5 Days Operations | 24 Hrs. x 7 Days Operations | 12 hrs. x 5 Days Operations | 24 Hrs. x 7 Days Operations |
| 10,000 – 30,000 sq ft | INR 23.48 | INR 25.32 | INR 2.76 | INR 3.75 |
| 30,000 – 50,000 sq ft | INR 25.44 | INR 27.28 | INR 3.22 | INR 4.85 |
| Mid Office | ||||
| Office area Range | Facility Management Services | Security Services | ||
| Site Operations | 12 hrs. x 5 Days Operations | 24 Hrs. x 7 Days Operations | 12 hrs. x 5 Days Operations | 24 Hrs. x 7 Days Operations |
| 50,000 – 100,000 sq ft | INR 22.82 | INR 24.66 | INR 3.36 | INR 4.77 |
Pawan Koyal, Executive Director and Head of Facilities & Asset Management Services, Knight Frank India, said, “It’s understandable that smaller offices will be less efficient in any geography but in Hyderabad, with higher minimum wages and other fixed costs, it is worthwhile to evaluate which model makes sense. It may be cheaper to use a co-working space than lease a small office and may even be optimal for mid-range considering that one does not need to hire FTEs or spend money and efforts in procuring services till a certain scale is achieved”
| Large office | ||||
| Office area Range | Facility Management Services | Security Services | ||
| Site Operations | 12 hrs. x 5 Days Operations | 24 Hrs. x 7 Days Operations | 12 hrs. x 5 Days Operations | 24 Hrs. x 7 Days Operations |
| 100,000 – 300,000 sq ft | INR 15.41 | INR 17.25 | INR 2.85 | INR 3.89 |
| 300,000 – 500,000 sq ft | INR 12.56 | INR 14.40 | INR 2.75 | INR 3.28 |
Large offices offer the strongest scale advantage
The most significant cost efficiencies are observed in Hyderabad’s large office campuses. For offices between 100,000–300,000 sq ft, facilities management costs stand at INR 15.41 per sq ft for standard operations and INR 17.25 per sq ft for 24×7 operations. Costs decline further for occupiers operating offices between 300,000–500,000 sq ft, where FM expenses reduce to INR 12.56 per sq ft and INR 14.40 per sq ft, respectively. Security costs remain stable at INR 2.75–2.85 per sq ft
These efficiencies are driven by integrated building infrastructure, centralised command systems, automation, and optimised workforce deployment, making large-format campuses particularly attractive for multinational corporations, GCCs, and IT/ITeS occupiers.
While 24×7 operating models continue to command a premium across office categories, the cost differential narrows for larger offices due to centralised systems, automation, and manpower efficiencies. Increasing adoption of smart building technologies, ESG-led workplace practices, and employee-centric workplace strategies is expected to further accelerate demand for integrated facilities management solutions across Hyderabad’s commercial office market.
Small offices record higher per sq ft operating costs
For occupiers operating in the 10,000–30,000 sq ft category, facilities management costs in Hyderabad stand at INR 23.48 per sq ft for standard 12-hour, 5-day operations and rise to INR 25.32 per sq ft for 24×7 operations. Meanwhile, offices in the 30,000–50,000 sq ft category incur FM costs of INR 25.44 per sq ft and INR 27.28 per sq ft, respectively. Security costs range between INR 2.76–4.85 per sq ft across these office formats.
These office formats are typically occupied by startups, flex-space operators, boutique firms, and regional business units, where manpower intensity and limited scale efficiencies tend to elevate operating costs on a per sq ft basis.
Mid-sized offices strike the balance between efficiency and scalability
Hyderabad’s 50,000–100,000 sq ft office segment demonstrates strong operational efficiency, making it particularly attractive for established corporates, technology firms, GCCs, and shared service centres. Facilities management costs in this category stand at INR 22.82 per sq ft for conventional operations and INR 24.66 per sq ft for round-the-clock operations, while security costs remain in the range of INR 3.36-4.77 per sq ft.
The relatively moderate cost structure reflects improved utilisation of engineering systems, optimised vendor deployment, and better workforce productivity, enabling occupiers to manage operational expenditure more effectively while maintaining workplace quality.