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Explained: What is Telangana’s ‘Future City’ and why it matters?

Market observers say that Future City is expected to unlock large-scale demand across industrial, commercial, residential and logistics real estate, while easing pressure on the city’s saturated IT hubs.

December 18, 2025 / 07:02 IST
Future City is planned along the Hyderabad–Bengaluru corridor across 765 square kilometers on the southern outskirts of Hyderabad between the Srisailam and Nagarjunasagar highways

The Telangana government’s proposed Future City is being seen as one of India’s most ambitious urban development projects, aimed at creating a next-generation economic and innovation hub on the outskirts of Hyderabad.

The project gained fresh momentum after, according to reports, Donald Trump’s business group, Trump Media, announced its plans to invest up to Rs 1 lakh crore over the next 10 years in the upcoming city.

Market observers say that the project is expected to unlock large-scale demand across industrial, commercial, residential and logistics real estate, while easing pressure on the city’s saturated IT hubs.

What is Future City?

Conceived as a large-scale, planned city focused on technology, manufacturing, sustainability and global investment, the project, also known as Bharat Future City, is expected to play a central role in Telangana’s long-term growth strategy.

Future City is planned along the Hyderabad–Bengaluru corridor across 765 square kilometers on the southern outskirts of Hyderabad between the Srisailam and Nagarjunasagar highways. The project is being positioned as a self-sustaining urban cluster, integrating workplaces, housing, social infrastructure and industrial activity within a single planning framework.

The government plans to back 30,000-acre Future City with extensive infrastructure investment, including high-speed road connectivity to Hyderabad and the international airport followed by metro and rail linkages in later phases. It will have dedicated power, water and waste-management systems along with digital infrastructure to support data-intensive industries.

The Future City is expected to anchor sectors such as semiconductors and electronics manufacturing, electric vehicles and advanced mobility, green energy, artificial intelligence, data centres and life sciences.

According to government officials, the Future City project is intended to expand Hyderabad, similar to its earlier, successful HITEC City project in Gachibowli. The new project, much larger in size, is intended to create a new city similar to Hyderabad, but without traffic issues.

The government also plans an expansion of the Hyderabad Metro Rail, currently run by L&T, into the Future City, and is in planning stages of dedicated expressways connecting the area to Hyderabad and elsewhere.

Investment size and timelines

While the state government has not yet issued a final investment figure, industry estimates suggest that Future City could attract investments of $20–30 billion (Rs 1.6–2.5 lakh crore) over a 20–25-year horizon, including public infrastructure, private industrial investment and real estate development.

According to people familiar with the plans, the proposed Rs 1 lakh crore investment by Trump Media over the next decade is expected to anchor early momentum, particularly in commercial real estate, digital infrastructure and mixed-use developments.

They said that core infrastructure, industrial and technology zones, logistics parks, and initial residential clusters close to airport-linked corridors will come up in the first phase spanning five to seven years. Large Grade-A office districts; integrated townships, retail centres, hospitality and social infrastructure is likely to be developed in the later phases.

Observers stated that like other modern-day greenfield cities in India, a large spend will be needed to develop basic infrastructure such as roads, water, electricity supply, and other allied measures, for which a spending of up to Rs 40,000 crore has been earmarked till 2030.

However, a significant part of the earmarked land is yet to be acquired, with pockets of resistance among farmers and landowners also being reported.

Why it matters for real estate?

Market observers said that the proposed Future City is expected to generate demand across multiple property segments including residential, offices and IT sector, mixed-use, industrial and logistics, data centre and retail.

Madhusudhan G, CMD, Sumadhura Group, said that for real estate, such comprehensive projects enhance investment viability.

He said that the proposed Future City is expected to create a pipeline for premium residential, commercial, and industrial developments that appeal to both domestic and international capital, while employment generation and economic clustering further underpin demand.

He said that Sumadhura Group has also committed Rs 600 crore investment in a 100-acre industrial and warehousing park in Telangana.

“Expected to generate over 8,000 jobs, our commitment aligns with the state’s sustainable growth strategy and strengthens the broader ecosystem that will make Bharat Future City a landmark for future-ready development in India,” he said.

Real estate experts said that land prices in surrounding micro-markets have already begun attracting attention from developers and institutional investors, though large-scale launches are likely to be phased.

“Much like Gachibowli transformed Hyderabad two decades ago, Future City could emerge as the city’s next long-term real estate anchor—provided infrastructure delivery keeps pace with announcements,” a Hyderabad-based real estate consultant said.

first published: Dec 18, 2025 07:00 am

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