Hyderabad, the capital city of Telangana, is poised to become a hotspot for real estate development, with plans to add approximately 35-38 million square feet of high-quality business parks within the next two years.
This surge in real estate activity spans across various segments, offering lucrative opportunities for homebuyers, investors, entrepreneurs, and other stakeholders. The robust business environment in Hyderabad has attracted global corporations to establish outsourcing centers, back offices, R&D facilities, and regional headquarters. This influx of corporate entities has fueled a substantial demand for office space, resulting in a significant increase in investment-grade office stock. According to a CBRE report, Hyderabad’s office stock surpassed 100 million square feet in 2022 and is projected to reach 119 million square feet by the end of September 2023, marking a remarkable 63% increase since 2019. Notably, Hyderabad emerged as one of the top three cities in office space leasing, with a notable 35% year-on-year increase in leasing activity, driven by key sectors such as life sciences, BFSI, and technology.
Moreover, the residential real estate sector in Hyderabad is experiencing significant growth, with plans for the launch of over 130,000 residential units in the next two to three years. The expansion of the technology sector and industrialization has spurred residential development near key office micro-markets such as the IT Corridor and Extended IT Corridor. The influx of employees from multinational corporations, coupled with the development of high-quality infrastructure, has stimulated demand in the residential market, enhancing overall living standards for residents.
Submarkets such as Gachibowli, Kondapur, Nallagandla, Kokapet, Puppalaguda, Narsingi, Tellapur, Kompally, and Shamirpet are witnessing rapid growth, fueled by the expansion of the IT corridor, improved connectivity via the Outer Ring Road, and the presence of essential amenities such as schools and healthcare facilities. Looking beyond 2023, Hyderabad’s real estate market holds promising prospects, driven by ongoing infrastructure development, a thriving IT and corporate sector, and a growing population. Additionally, there is a notable trend towards the development of 3BHK units above 2,000 square feet, reflecting a preference for spacious residences among buyers. Amidst improving domestic inflation levels and India’s economic growth outpacing global trends, the real estate sector is expected to maintain its growth momentum in the coming quarters, supported by the Reserve Bank of India’s decision to maintain the repo rate in 2024.
