Hyderabad’s Outer Areas to Lead in Office, Housing Growth by 2030

Hyderabad’s real estate expansion is shifting towards peripheral areas, driven by infrastructure projects like Metro Phase II, the Regional Ring Road (RRR), and industrial corridors. These regions are expected to contribute 12-15 per cent of the city’s Grade A office stock by 2030, according to a report by Colliers India.

Projected Growth in Peripheral Real Estate:

- Peripheral areas are expected to generate 5-10 per cent of Hyderabad’s annual office space demand over the next 3-5 years.

- Approximately 20-25 per cent of new office supply will emerge from these regions.

- Residential property prices in the periphery may rise by 10-20 per cent across the western, southern, eastern, and northern micro-markets.

- Industrial, warehousing, data centers, and life sciences segments are projected to gain traction.

Key Drivers of Growth:

- The extension of Metro Phase II will improve connectivity in the West, South, and East Periphery regions.

- The RRR project will enhance road networks, supporting real estate expansion.

- Industrial corridors connecting Hyderabad to Nagpur, Bengaluru, and Warangal are expected to boost development.

- Government policies promoting ICT 2.0, MSME, and data centers will facilitate investment.

Micro-Market Real Estate Trends:

- West Periphery: Areas like Kokapet, Neopolis, and Narsingi will see increased commercial activity due to lower costs compared to established IT hubs like HITEC City and Gachibowli. Office rentals may rise by 10-15 per cent.

- East Periphery: Residential real estate is expected to gain momentum in Uppal, Pocharam, and LB Nagar, supported by affordability and metro connectivity.

- North Periphery: Medchal, Shamirpet, and Kompally will witness growth in industrial and warehousing segments due to logistics and manufacturing demand.

- South Periphery: Shamshabad and surrounding areas will benefit from industrial and warehousing expansion, as well as data center growth.

Infrastructure Developments and Impact:

- Metro Phase II corridors will strengthen connectivity across key micro-markets.

- The RRR project will spur radial expansion, benefiting emerging real estate corridors.

- Hyderabad’s Grade A office stock in peripheral areas may rise from 13 million sq. ft. to 20-25 million sq. ft. in the next five years.

- Office space demand in peripheral regions is projected to contribute 5-10 per cent of annual leasing activity.

Market Outlook:

- West Periphery will continue to attract commercial real estate investments, doubling its Grade A office space to approximately 22 million sq. ft.

- South Periphery will see increased demand for data centers, supported by the state’s ICT policies.

- East Periphery’s residential sector will gain from affordability and enhanced connectivity.

- North Periphery will strengthen its position in industrial, warehousing, and life sciences sectors.