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Peripheral areas of Hyderabad, emerging as real estate growth frontiers; to account for 12-15% of Grade A office inventory by 2030
Peripheral areas of Hyderabad, emerging as real estate growth frontiers; to account for 12-15% of Grade A office inventory by 2030

March 18, 2025

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5-10% of annual office space demand and 20-25% of new supply is likely to come from peripheral areas of the city over the next 3-5 years. Average housing prices can increase by 10-20% across West, South, East and North Periphery micro markets.


Hyderabad’s real estate growth is rapidly expanding beyond its core hubs, with peripheral areas emerging as the city’s new growth frontiers. Fueled by prominent upcoming infrastructure projects such as Metro Phase II extension, proposed Regional Ring Road (RRR) and industrial corridors, Hyderabad’s peripheral areas hold immense growth potential in the coming years. Additionally, supportive government policies such as Information & Communication Technology 2.0, Micro, Small and Medium Enterprises (MSME) policy, Data Center policy etc., conducive business environment, and relatively affordable real estate price points are set to make Hyderabad’s peripheries increasingly attractive for businesses and investors. 

While established hotspots in the West & Central Hyderabad will continue to drive real estate activity, peripheral areas including North, South, East and West peripheries are expected to account for 12-15% of Hyderabad’s Grade A office stock and 5-10% of annual office space demand in the next 3-5 years, according to Colliers' latest report, ‘Hyderabad: Emerging Real Estate Growth Hotspots’. The residential market is also set to witness significant traction, with property prices in the peripheral areas projected to rise 10-20% over the next 3-5 years. 

Upcoming key Infrastructure projects in Hyderabad –

 

Infrastructure development will be key to urban as well as real estate growth of Hyderabad across asset classes, particularly in peripheral areas of the city.

Anticipated impact in Hyderabad’s peripheral micro markets across key real estate segments over the next 3-5 years

 

Infrastructure upgrades to boost Hyderabad’s commercial real estate; 20-25% of new supply likely to come up in peripheral markets

While existing established markets in Hyderabad such as HITEC City, Raidurg, Kondapur, Gachibowli, Nanakramguda, etc. will continue to drive the office market, peripheral areas are likely to increasingly complement established office micro markets in the next few years. Emerging areas in the city’s periphery are likely to account for 20-25% of Hyderabad’s Grade A new supply, significantly up from a current share of less than 5%. Moreover, areas including Kokapet, Shamshabad, Uppal and Pocharam are expected to see notable rise in Grade A space uptake. Resultantly, peripheral micro markets can contribute up to 10% of Hyderabad’s annual leasing activity in the next 3-5 years. Additionally, Grade A stock in the peripheral areas can increase to 20-25 million sq ft in the next few years, from around 13 million sq ft currently. With heightened demand, average rentals across the four peripheral micro markets, too can rise further by 5-15% in the near-mid-term. 

Office market outlook for Peripheral micro markets of Hyderabad in the next 3-5 years

 

Micro market-wise office market outlook of peripheral areas in Hyderabad (for the next 3-5 years)

 

 

West Periphery likely to see heightened office & residential activity


Strong intra-city connectivity to drive real estate developments in South Periphery

 

East Periphery growth to be driven by affordability & proximity to Tier II Cities

 

North Periphery to witness traction in industrial & warehousing as well as alternative segments

 

Read the detailed findings in our research report here.


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Colliers India
Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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