Hyderabad is rapidly solidifying its position as a dynamic real estate powerhouse. Fuelled by multi-sector growth, strategic infrastructure development, and a burgeoning cosmopolitan culture, the city is witnessing significant expansion across the residential, commercial, and warehousing segments.
According to a report by JLL, a realty services firm, Hyderabad’s tech sector has been a key driver of this growth. The city’s IT/ITeS exports ranked second in the country, at $32 billion in FY 2022-23.
The city hosts over 4,000 start-ups and its office market has grown significantly, representing 15.6 percent of India's Grade A office stock and 17 percent of the country's stock of global capability centres (GCCs). Since 2019, the city has added 78.2 million square feet (msf) of Grade A office space, contributing 25 percent to India's incremental supply, according to JLL. In 2024, Hyderabad absorbed 7.31 msf of office space, up 6.1 percent from the previous year.
Market observers said that Hyderabad's future is promising, and that strong policies and infrastructure will drive multi-sector growth, attracting global investors to the city.
Experts also said that in the residential segment, Hyderabad is expected to launch over 1,00,000 new housing units in the next three-four years. Major retail players plan to expand their presence in the city, signalling strong investor confidence.
JLL data showed that the retail market is also steadily growing, with the total stock of Grade A malls standing at 9.86 msf and decreasing vacancy rates, signalling healthy absorption. Additionally, data centre capacity is also expected to increase by 23 megawatts (MW) in the next couple of years.
Growing GCCs
Chirag Mehta, Founder, Arbour Investment, said that Hyderabad’s growing share of GCCs is one of the most significant developments in India’s commercial real estate landscape.
“With 17 percent of India’s GCCs now based in Hyderabad, the city is attracting high-value global investments. The nature of these GCCs will determine the sustainability of Hyderabad’s rise,” he said.
Pushpamitra Das, Founder and Director of JUSTO, a real estate solutions provider, said that the city is anticipated to add 17-19 msf of office space annually until 2026, and also expand its warehousing capacity by 4 msf within two years.
Infra upgrade
Das said that unlike Bengaluru, which relies heavily on the IT sector, Hyderabad has successfully built a more balanced economy spanning technology, pharmaceuticals, life sciences, and logistics. This diversification ensures resilience against sector-specific downturns, as demonstrated during the pandemic. And the proactive infrastructure development in Hyderabad creates a crucial competitive edge.
“The Mega Master Plan 2050, the Mucherla 4.0 IT hub, and metro expansion represent forward-thinking urban planning that addresses the infrastructure challenges. This infrastructure investment will likely support sustainable long-term growth in Hyderabad's commercial real estate market,” he explained.
Affordability
According to market observers, affordability makes Hyderabad a lucrative investment option for domestic as well as global investors.
Das said that affordability is a key driver of future growth. “With significantly lower property prices compared to Bengaluru while still offering high-quality facilities, Hyderabad presents compelling value for businesses looking to optimise operational costs without compromising on amenities or talent access,” he said.
He added that strategic investments in Hyderabad's commercial real estate market represent an opportunity to capitalise on its rapid growth trajectory, diversified economy, improved infrastructure, and relative affordability.
Mehta said that Hyderabad’s commercial real estate boom presents a compelling investment opportunity, but stakeholders must remain vigilant about structural risks.
“The city’s advantages — cost efficiency, infrastructure readiness, and sectoral diversification — are strong, but they must be sustained through long-term urban planning and policy support,” he added.
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