Hyderabad office market: what REIT filings show on occupancy, leasing and pre-commitments in Q1 FY27

Rules and rates as of 12 October 2026.

What the filings show

Four listed office REITs have now filed their results for April to June 2026 (Q1 FY27) with the stock exchanges. Two of them, Mindspace Business Parks REIT and Knowledge Realty Trust, own large office parks in Hyderabad. Their own disclosures are the closest thing a buyer has to audited, building-level data on how full offices are, how much new space is being let, and at what rent.

Every number below is taken from the REITs' own press releases and investor presentations, not from broker estimates. We did not find Q2 FY27 (July to September) results filed at the time of writing.

Hyderabad: high occupancy in the core, gaps at the edges

Mindspace REIT reports 17.1 million sq ft of leasable area in Hyderabad, about 37% of its 46.2 million sq ft portfolio. Committed occupancy for Hyderabad as a whole was 93.1% at 30 June 2026. Within that, Mindspace Madhapur stood at 98.9%, while the 0.6 million sq ft Pocharam park was at 0% and is shown as an asset held for sale. Average in-place rent in Hyderabad was ₹77.2 per sq ft per month.

Knowledge Realty Trust lists 12.9 million sq ft in Hyderabad, all of it completed, across Sattva Knowledge City (99% committed), Sattva Knowledge Park (96%) and Sattva Knowledge Capital (100%). The city total is 99%. Its Hyderabad in-place rent is ₹79 per sq ft per month against a market rent the REIT puts at ₹112, a gap it describes as 42% mark-to-market potential.

That gap matters. When existing leases expire, the landlord expects to re-let at closer to market rent. It is the landlord's estimate, not a contract, but it tells you where the REIT thinks rents are heading.

Pre-commitments: space let before it is built

Pre-leasing is the strongest signal of demand, because a tenant signs for space it cannot yet use. Mindspace says about 4.6 million sq ft of its 6.6 million sq ft under construction is already pre-let. In Hyderabad, its Madhapur 1A-1B redevelopment (1.5 million sq ft, due Q2 FY27) is 100% pre-leased and Madhapur 7/8 (1.7 million sq ft, due Q4 FY27) is 84% pre-leased. Embassy REIT, which has no Hyderabad assets, says about 60% of its deliveries over the next two years are pre-leased.

Four REITs side by side

REIT (Q1 FY27)	Committed occupancy	Gross leasing	Re-leasing spread	In-place rent (₹/sq ft/month)	Distribution per unit
Mindspace	90.7% (95.8% excluding Pocharam and new acquisitions)	0.9 msf	10.7%	81.0	₹6.67
Knowledge Realty	93%	1.4 msf	35% new, 29% renewals	99	₹1.70
Embassy	93% (by value)	1.3 msf	11% new, 9% renewals	Not stated in release	₹6.31
Brookfield India	93%	1.1 msf	14%	Not stated in release	₹5.60

Two cautions. First, the definitions differ: Embassy reports occupancy by value, Mindspace gives two figures depending on which assets are counted, and Knowledge Realty's press release and presentation describe its 35% spread slightly differently. Second, distribution per unit cannot be compared across REITs without the unit price, because each REIT has a different number of units.

What a REIT must pay out

Under the SEBI (Real Estate Investment Trusts) Regulations, 2014, as notified, at least 80% of a REIT's asset value must be in completed, rent-generating property, and not less than 90% of its net distributable cash flows must be paid to unit holders, at least once every six months. Each of the four REITs in the table declared a distribution for this single quarter. The regulations have been amended several times since; the current consolidated text is on SEBI's website.

Worked example: a ₹1 crore office unit vs REIT units

These are illustrative figures, not quotes. Suppose a small office unit in Hyderabad costs ₹1 crore and lets at ₹60,000 a month.

• Gross rent: ₹60,000 × 12 = ₹7,20,000 a year, or 7.20% of the price.
• Less one month's vacancy between tenants: ₹60,000.
• Less property tax (assumed): ₹30,000.
• Less owner's share of maintenance and repairs (assumed): ₹24,000.
• Net rent: ₹7,20,000 − ₹60,000 − ₹30,000 − ₹24,000 = ₹6,06,000, a net yield of 6.06% before tax and before stamp duty and registration on the purchase, which lower it further.

For a REIT, distribution yield = annual distribution per unit ÷ unit price. Mindspace's Q1 FY27 distribution was ₹6.67 per unit. Annualised, that is ₹6.67 × 4 = ₹26.68. At an assumed unit price of ₹450 (illustrative; check the live price on NSE or BSE), the yield is ₹26.68 ÷ ₹450 = 5.93%. ₹1 crore would buy about 22,222 units and, at that rate, receive about ₹5.93 lakh a year.

The two figures look close, but they are not like for like. The unit owner carries the vacancy risk of one tenant and one building; the REIT spreads it across millions of square feet. The REIT unit price moves daily; the office unit is harder to sell. And tax differs: REIT distributions are split into dividend, interest and debt repayment, each treated differently. A chartered accountant can work out what each means for your income.