Bangalore ($1/sqft, 14.2% vacancy) and Hyderabad ($1/sqft, 17.4% vacancy) compete on different axes: Bangalore on talent depth and Hyderabad on rent and tax.
Bangalore ($1/sqft, 14.2% vacancy) and Hyderabad ($1/sqft, 17.4% vacancy) compete on different axes: Bangalore on talent depth and Hyderabad on rent and tax.
| Metric | Bangalore | Hyderabad |
|---|---|---|
| Region | APAC | APAC |
| Country | India | India |
| Class A rent (USD/sqft/yr) | $1 | $1 |
| Class A rent (local) | 110 INR | 90 INR |
| Vacancy | 14.2% | 17.4% |
| Trend | rising | rising |
| Prime yield | 8.5% | 8.6% |
| Premium flex / seat / month (USD) | $280 | $260 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 25.17% | 25.17% |
| Metric | Bangalore | Hyderabad |
|---|---|---|
| Typical term | 9 yrs | 9 yrs |
| Typical rent-free | 6 mos | 7 mos |
| Lease norms | Net leases (tenant pays opex, taxes separately). 9-year terms with 3-year lock-ins standard. Free rent of 4-9 months and TI of INR 1,500-3,000/sqft typical on a 9-year Class A deal. | Net leases. 9-year terms with 3-year lock-ins. Free rent of 5-9 months and TI of INR 1,500-3,000/sqft typical. |
| Tax note | 22% base corporate income tax plus surcharges and cess for an effective rate of 25.17%. New manufacturing companies eligible for 15% concessional rate. SEZ benefits available in selected GCC parks. | 22% base corporate income tax plus surcharges and cess for an effective rate of 25.17%. SEZ benefits available in selected HITEC City and Gachibowli parks. Telangana state offers tech-sector incentives. |
| Metric | Bangalore | Hyderabad |
|---|---|---|
| Talent index (0–100) | 82 | 80 |
| Talent note | Deepest tech and engineering talent pool in India — anchored by IISc, IIM Bangalore, IIIT-B, and a deep network of engineering colleges. English-fluent professional base supports global delivery operations. | Deep tech, pharma, and life sciences talent. Strong feed from IIT Hyderabad, ISB, NIT Warangal, and a deep network of engineering and pharma colleges. English-fluent professional base; Telugu and Hindi-Urdu language depth. |
Bangalore: BMRCL Namma Metro (Purple, Green, Yellow Lines), BMTC bus. Whitefield is now Metro-served (2023). Bengaluru Suburban Rail under construction. Heavy congestion on Outer Ring Road remains a tenant concern.
Hyderabad: Hyderabad Metro Rail (Red, Blue, Green Lines). MMTS suburban rail. RGI Airport connected via bus and the planned Airport Metro Express.
Hyderabad is the cheaper Class A market on a USD basis.
Bangalore has the deeper talent index (82/100 vs 80/100).
Tax rates are tied.
Bangalore typical term is 9 years with 6 months free; Hyderabad runs 9 years with 7 months free.
Bangalore: BMRCL Namma Metro (Purple, Green, Yellow Lines), BMTC bus. Whitefield is now Metro-served (2023). Bengaluru Suburban Rail under construction. Heavy congestion on Outer Ring Road remains a tenant concern. Hyderabad: Hyderabad Metro Rail (Red, Blue, Green Lines). MMTS suburban rail. RGI Airport connected via bus and the planned Airport Metro Express.
Score Bangalore, Hyderabad and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.