THE SOUTH’S POWERHOUSE: HYDERABAD’S WINNING REALTY FORMULA

Telangana’s government has been allocating ₹10,000 crore annually from the budget towards urban development. As per Deputy Chief Minister Mallu Bhatti Vikramarka, over the past two years, ₹20,000 crore worth development works have been taken up and their impact is now becoming visible. “These projects will transform the very landscape of Hyderabad,” he asserted. In conjunction, Hyderabad’s real estate market is showing an upward trajectory, with property prices increasing by 13–19% year-on-year in Q3 2025, according to the latest Knight Frank–NAREDCO Real Estate Sentiment Index. The residential property registrations in Hyderabad rose by 5% year-on-year (YoY) with a notable rise in demand for homes priced above ₹1 crore, that registered a surge of 73% YoY in the month. This sharp 73% surge in registrations of over ₹1 crore reflects the city’s growing shift toward larger, high-value residences. Predictably, IT/ITeS comprised the largest share of office leasing this year too. Hyderabad witnessed 5.7 million square feet net absorption of office space in 9M 2025 compared to 4.42 million square feet in 9M 2025. In the retail real estate segment, Hyderabad along with Mumbai and Delhi NCR led the activity in Q3 with 21% share (0.51 MSF). Together, these three markets captured nearly two thirds of YTD leasing. Industrial & Logistics leasing in Hyderabad touched 4.6 million square feet and combined with Delhi-NCR and Bengaluru, led the cumulative share for 59% of total leasing in 9M 2025.


Giving an overall outlook of the city, Rajashekar Reddy Venuganti, Immediate Past President, Credai - Hyderabad stated, “Hyderabad has grown into a strong real estate market because of stable industrial growth driven sectors like IT, Pharma and Life Sciences, financial services, EV manufacturing and space and defense manufacturing etc., backed by a reliable infrastructure and competitive pricing across major corridors.” “Hyderabad has emerged as India’s most efficient and well-planned tech–innovation hub, and its real estate landscape reflects that maturity. The city continues to demonstrate a remarkable balance supporting diverse sectors of IT, Life sciences, aerospace. Its integrated, multi-sector ecosystem, backed by a well-planned infrastructure and proactive government interventions positions it in a sweet spot,” added Prashanth Menon, Co-Founder & Partner, Upwisery


Hyderabad is among the very few cities in the country where infrastructure development precedes real estate development.


Infrastructure Developments Fuelling Growth

Hyderabad’s real estate surge is propelled by transformative infrastructure projects. The Outer Ring Road (ORR) network has unlocked micro-markets like Kokapet, Patancheru, and the Financial District. The Hyderabad Metro Phase II, featuring a 31-km Airport Express connecting Raidurg to the international airport with investments exceeding ₹17,000 crore, revolutionizes accessibility. The Strategic Road Development Plan (SRDP) has added critical flyovers and grade separators, drastically cutting travel times. The newer Regional Ring Road (RRR) have opened peripheral land for development by slashing travel times to IT/airport nodes. Metro Phase II and related rapid-transit expansion have improved last-mile connectivity to employment centres and are already feeding price gains and higher rental premiums in neighbourhoods close to stations. Regional Ring Road shall also reduce the entry of heavy goods vehicles into Hyderabad thereby reducing the pollution and traffic congestion.

As M. Nanda Kishore, Managing Director, Ramky Estates & Farms Limited states, “Hyderabad is among the very few cities in the country where infrastructure development precedes real estate development. Government spending has been consistent on Roads, Water Supply, Metro and Waste Management. Water sourcing from Krishna and Godavari rivers has been ongoing in a major way. Mission Bhagiratha is a flagship drinking-water project launched by the Government of Telangana to provide safe, treated, and piped drinking water to every household in the state. The Fourth City announced recently by the state government is a major fillip to large scale urban expansion in south Hyderabad. Public-services & civic upgrades: large state allocations to water, sewerage, road widening and elevated corridors, improve habitability and unlock higher-value development across both central and peripheral locations.” Y Swapna Kumar, Managing Director, Honer Homes added, “The 340-km Regional Ring Road (RRR), being upgraded to six lanes, represents a watershed moment—this semi-greenfield expressway will connect five districts and unlock vast land parcels for townships and industrial clusters. The 41.5-km Ratan Tata Greenfield Radial Road with metro integration exemplifies forward-thinking planning. Most significantly, the proposal for Bharat Future City near Mucherla—spanning 30,000 acres with net-zero carbon design—will position Hyderabad for exponential growth in AI, healthcare, pharmaceuticals, and sports sectors.”

Hyderabad’s Competitive Edge Over Bengaluru and Pune

Hyderabad has demonstrated a faster growth curve compared to other IT hubs. The city recorded 80% capital appreciation over four years, significantly outpacing Bengaluru (45%) and Pune (30%). Property rates increased 64% between 2019-2024, with Kokapet witnessing 89% price surges. At ₹7,412 per square foot versus Bengaluru’s ₹7,881, Hyderabad offers superior value with rental yields of 4.2-5% compared to Bengaluru’s 3-4%. According to Y Swapna Kumar, “Hyderabad’s strategic advantage lies in its 360-degree geographical expansion potential, unlike land-constrained metros. Global tech giants including Microsoft, Google, and Amazon drive sustained housing demand. Office rentals are 20-30% lower than Bengaluru, attracting more Global Capability Centers—in 2025 alone, tech GCCs leased 5.2 million square feet. The city’s robust international connectivity through trade, IT, ITeS, and exports, combined with an expanding airport infrastructure, cements its position as a premier technology hub.” M. Nanda Kishore agreed that the quality of real estate development in Hyderabad is fast outgrowing both Bangalore and Pune by the sheer size and magnitude of development. Perhaps, the concept of significantly higher FSI availability is driving this.

Even though land prices have zoomed in the recent past, particularly in west Hyderabad, the price of developed spaces, are still very comparable again due to higher FSI both for residential and office space. Office rentals in Hyderabad are competitive and comparatively lower for the same reason. No wonder Hyderabad is the leader in hosting GCC’s in the country. Hyderabad is arguably the fastest-growing major real estate city right now if you look at residential launches + price CAGR and expansion of GCCs. Considering the affordability of homes, relatively lower office rentals, better social and physical infrastructure, lower cost of living and better quality of life, Hyderabad seems to be carried a huge advantage over other cities.” “Hyderabad offers smoother expansion and better affordability than Bengaluru, along with a more predictable regulatory environment. Compared with Pune, the city benefits from a wider corporate base, growing financial services presence and steady interest from global capability centres. Its overall quality of life, supported by planned civic improvements, continues to attract both end users and long-term investors, making the market resilient and future ready,” said V Rajshekar Reddy.

There have been significant reforms brought in real estate by the Hyderabad government to enhance speed, transparency and ease of doing business.


“CREDAI Hyderabad believes that a simpler process for land use conversion and land consolidation will significantly reduce uncertainty for developers and help them plan long term. V Rajshekar Reddy”

“With the recent an nouncements related to the proposed ECB structure, even more liquidity will be available for Hyderabad developers through traditional banks, IPO’s & REITs. Prashanth Menon”

“Land prices along new metro corridors and ORR edge will appreciate significantly. Among the micro-locations, Kokapet -Neopolis promises to be the Manhattan of Hyderabad with several structures touching the sky! M. Nanda Kishore”

“Hyderabad’s advantage of abundant land enabling balanced peripheral growth, coupled with pro business policies and stable governance, ensures sustainable development without congestion challenges. Y Swapna Kumar”



Regulatory Reforms Boosting Confidence

There have been significant reforms brought in real estate by the state government to enhance speed, transparency and ease of doing business while providing fillip to growth in certain segments of the city. BuildNow, earlier known as TS bPASS, has strengthened ease of doing business by shifting approvals to a digital and time-based system that is simple and transparent. “The Telangana State Building Permission Approval and Self-Certification System (TS-bPASS), launched in 2021, has revolutionized development timelines. This single-window system delivers approvals within 21 days, with deemed approval if authorities delay. Plots up to 75 square yards require only ₹1 token registration with no permission needed, while 75-600 square yards receive instant approval through self-certification. Critical reforms include streamlined project permissions, faster occupancy certificate issuance, and significantly, removal of the mortgage requirement for under-development spaces with GHMC.

This mortgage was previously mandatory before TS RERA could ensure adherence to development proposals and prevent deviations or violations. These reforms have enhanced transparency, reduced corruption, accelerated completion rates, and increased buyer confidence—evidenced by climbing approvals and a 13% increase in monthly registrations since February 2025,” elaborates Y Swapna Kumar As V Rajshekar Reddy puts it, “TS bPASS has reduced unnecessary delays, introduced self-certification where eligible and improved the clarity of documentation. Developers benefit from faster planning, lower holding costs and more predictable t imelines, while buyers gain confidence as approvals move smoothly. Smaller developers are also adopting formal processes due to the transparency of the platform. Overall, it supports quicker project execution and better governance across the real estate sector.” M. Nanda Kishore added, “The TS-bPASS system facilitates speedier and accurate processing of drawings helping scrutiny of plans in a better way.

The entire system signals a big change in how real estate landscape functions in Telangana in terms of ease of doing business. Most recently the decision of the State government to allow conversion of certain industrial lands within the city for multi-use development, too will provide a huge boost to development of quality real estate within the city while providing economic boost within the micro markets and provide a facelift to the city.” Prashanth Menon was of the view that Hyderabad already offers a strong environment for investors, and reinforcing a few key policies can make it even better and focused micro market planning will ensure infrastructure keeps up with growth. “TS-iPASS should remain efficient to provide quick, reliable clearances. Further progress in digitising revenue and land records will improve transparency and make transactions easier. These measures can help maintain the city’s positive investment climate.”


Hyderabad’s Enhanced Investment Appeal

V Rajshekar Reddy shared, “A clear and uniform framework for contributions toward essential civic infrastructure, including water, drainage, electricity and mobility, will bring financial clarity. Incentives for affordable and mid income housing can ensure balanced supply. Continued digital service delivery, efficient coordination among departments and time bound approvals will build deeper investor confidence and attract responsible private and institutional capital into the city.” Y Swapna Kumar was of the view that to strengthen investor confidence, Hyderabad should expedite land acquisition for mega projects like RRR and Future City, while harmonizing state and municipal approvals through digital integration. “Tax incentives for green-certified projects would align with global trends. Strengthening RERA enforcement ensures developer accountability and homebuyer protection. Simplifying FDI norms and offering SEZ benefits for integrated townships would attract international capital.

Robust dispute resolution frameworks and improved infrastructure financing through public-private partnerships will sustain momentum.” M. Nanda Kishore points out a few areas that need to be addressed viz, removal of the mortgage clause on plan approvals since RERA is in place, making Single Window system really effective, expediting certain NoC’s. Of course,a lot of expectations are around affordable housing where the State and the Centre need to work together for providing tax reliefs, Stamp duty exemptions, cheaper home finance etc. Talking about the finance & funding opportunities available for the developers Prashanth Menon said, “Family offices with strong liquidity have become one of the most active new sources of capital for developers. Going beyond the traditional real estate ownership, more and more family offices are now taking up equity-based structuring.

Further boosting up the liquidity available to the developers, the growing momentum in IPOs and REITs continues to draw global capital and expand developers’ access to public-market funding. At the same time, the increasing financialization is putting Hyderabad on the global map as one of the promising investment destinations. Ranked #1 in real estate financing by deal volume in the Venture Intelligence league table, Upwisery is now channelling its combined expertise and strong access to diversified institutional capital into an alternate real estate investment platform for family offices and HNIs. With over ₹600 crores already deployed across real estate deals, we are focused on creating a cohesive ecosystem to efficiently manage family office capital allocation into the sector.”


Realty Segments Gaining Momentum

43 Hyderabad is experiencing strong momentum in office spaces, information technology campuses, logistics, warehousing and residential communities. Giving a detailed perspective, Prashanth Menon shared, “Hyderabad, India’s ‘Vaccine Hub,’ has established one of the most integrated life sciences ecosystems, anchored by Genome Valley and Pharma City. With the launch of the 4th City, a 30,000-acre, net-zero energy development, the city is positioning itself as a globally competitive hub. Beyond life sciences, Hyderabad is witnessing rapid growth across warehousing, data centres, and industrial sectors. With its current and upcoming projects, the city is set to emerge as the nation’s second-largest data centre hub, capturing a 19% market share. Hyderabad’s upcoming data centre capacity stands at 540 MW, giving the city a larger growth pipeline compared to Bengaluru’s 106 MW and Pune’s 190 MW. Hyderabad has also become a major GCC hub, with 21.1 million sq ft of GCC leasing between 2021 and 2025, which is the second-highest in India. During this period, the city accounted for 21% of the country’s total GCCs.” As per Y Swapna Kumar, “Luxury housing above ₹1.5 crore surged 450% since 2021 is now representing 29% of sales versus 18% for affordable housing. Premium gated communities with smart features and sustainability certifications dominate preferences, with 56% preferring 3 BHK or larger. Commercial real estate, particularly Grade A offices, is projected to grow from 13 million to 20-25 million square feet in 3-5 years, driven by tech expansion and GCC proliferation.

Plotted developments and villa communities experience robust demand from NRIs and high-net-worth individuals. Integrated townships offering walk-to-work ecosystems redefine urban living. Transit-oriented developments along metro corridors show 8-12% value appreciation. The logistics segment booms around RRR alignment and the airport, supported by e-commerce growth.”

According to V Rajshekar Reddy “Offices continue to grow due to steady hiring and new corporate investments in technology and life sciences. Logistics is rising because of ecommerce expansion and improved highways. Premium homes are attracting professionals who prefer larger spaces, better planning and community facilities. Peripheral locations near the outer ring road and new mobility corridors are gaining demand as connectivity improves. These trends are supported by economic stability, strong employment and increasing interest from investors,”

he said. M. Nanda Kishore was bullish about new asset classes. “Senior living segment is emerging as a strong and a viable long term asset class due to demographics, desire for professionally managed retirement communities, nuclear families etc. Similarly, Co-living is also steadily growing as we witness more organized developments happening in this space with younger professionals, students, and millennials increasingly preferring f lexible and community-driven living. Data centres are emerging as a strong alternative real estate asset class. Data centre capacity in India is expected to rise sharply, driven by cloud adoption, AI, and global digital infrastructure needs.”



The increasing financialization is putting Hyderabad on the global map as one of the promising investment destinations.


Hyderabad 2030: A Vision of Prosperity

By 2030, Hyderabad is set to emerge as a balanced, multi sector global hub, featuring dense innovation clusters, robust industrial capacity, and one of India’s most future-ready real estate ecosystems. Prashanth Menon states, “The entry of 64 new GCCs over the past two years underscores Hyderabad’s appeal as a high-value, innovation-driven destination. Supported by over ₹54,000 crore in recent investments, its life sciences sector is evolving beyond its traditional manufacturing focus to become a global innovation engine. As part of this wider evolution, the virtual introduction of a major engine MRO facility signals Hyderabad’s steadily increasing relevance in aerospace and defence.”

Y Swapna Kumar envisions Hyderabad as a globally competitive metropolis with unparalleled 360-degree development potential. RRR completion, metro expansion to 190 kilometers, and Bharat Future City operationalization will transform the landscape. Net-zero carbon initiatives, IoT-enabled smart infrastructure, and intelligent traffic management will set new benchmarks. “Hyderabad’s future is secure as India’s premier destination for IT, ITeS, pharmaceuticals, biotechnology, AI, and electronics manufacturing. International connectivity through the expanded airport, multimodal transportation, and robust digital infrastructure will attract continued foreign investment. With projected population growth to 18.5 million by 2031 and infrastructure investments exceeding $10 billion, Hyderabad is poised to redefine urban living while maintaining its cultural heritage and quality of life,” he adds.

M. Nanda Kishore expects Hyderabad to be a Polycentric Mega City with several Urban hubs each having a significant impact on the economy of the city. “The Gachibowli Raidurgam-Financial District shall be the Corporate IT & GCC Hub, Shamshabad region shall be the Aero City & AI City Hub, Medchal -Kompally shall be the Logistics Hub, Patancheruvu Sangareddy shall be the manufacturing hub, so on & so forth. Residential demand will stay strong and organized, Grade A assets (IT, GCC, data centres) will expand, Senior living, co living, and student housing will grow. We shall witness major infrastructure transformations with Metro Phase 2 & Airport metro fully operational, expressway network connectivity with semi-urban centers in rest of Telangana, Musi River Front Development in all its grandeur, Integrated Transport Network, completion of all water supply and utilities supply schemes to Hyderabad. The city will continue its global dominance in Pharma and Life Sciences, GCC’s, while making significant strides in creating a more diversified economic base across industries and services. We might finally see the Hub & Spoke model of development for real by 2030,”

he said. V Rajshekar Reddy predicts, Hyderabad evolution into a more connected, well-coordinated and globally competitive metropolitan centre by 2030. “Expanding business districts, new mixed-use corridors, modern logistics networks and well designed residential clusters will guide urban growth. Better public transport, upgraded civic amenities and wider use of digital systems will support efficient development. The city is likely to attract deeper corporate and investment activity across sectors. The upcoming Bharth Future City with the planned AI City will propel the growth for Hyderabad as the new smart city will enhance the growth of South / South West corridors and propel the growth of the city for the next decade and more supported by continued growth and expansion all along the ORR.”