Hyd’s Peripheral Realty Set For Major Boom, To Account For 15% Of Office Stock By 2030

These upcoming projects will enable Hyderabad’s peripheral micro-markets to become self-sustaining hubs for office, residential, and industrial activity, reducing pressure on core commercial zones like HITEC City and Gachibowli -- Arpit Mehrotra, Managing Director, Office Services, Colliers India

Hyderabad: Hyderabad’s real estate landscape is witnessing a significant shift as peripheral areas emerge as the city’s next major growth frontiers. Fuelled by large-scale infrastructure projects, such as Metro Phase II, the proposed Regional Ring Road (RRR), and key industrial corridors, these peripheral regions are set to attract substantial commercial and residential development over the next decade.

According to a report by Colliers India, Hyderabad’s peripheries—including North, South, East, and West zones—are projected to contribute 12-15 per cent of the city’s total Grade A office inventory by 2030. Additionally, 5-10 per cent of annual office space demand and 20-25 per cent of new office supply will come from these areas over the next 3-5 years.

The Metro Phase II expansion is expected to play a crucial role in enhancing connectivity between the city's core areas and its outskirts, making peripheral locations more accessible and attractive to businesses and investors. Key metro corridors under Phase II include:

• Corridor 4: Nagole to Rajiv Gandhi International Airport (RGIA), Shamshabad

• Corridor 5: Raidurg to Kokapet and Neopolis

• Corridor 8: LB Nagar to Hayath Nagar

Simultaneously, the 340-km Regional Ring Road (RRR) is set to boost real estate activity across major growth corridors, connecting areas like Sangareddy, Gajwel, Shankarpally, and Ibrahimpatnam.

“These upcoming projects will enable Hyderabad’s peripheral micro-markets to become self-sustaining hubs for office, residential, and industrial activity, reducing pressure on core commercial zones like HITEC City and Gachibowli,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

Among Hyderabad’s peripheral zones, the West Periphery (Kokapet, Neopolis, Narsingi, and Miyapur) is expected to see the highest commercial and residential activity. Due to its proximity to HITEC City and Financial District, along with competitive pricing compared to established IT hubs, the demand for Grade A office spaces in this region is projected to grow multifold.

As per Colliers, average rental rates in Kokapet and Neopolis may rise by 10-15 per cent in the next few years, though the region will still offer a cost advantage to corporate occupiers. The West Periphery will also continue to be a residential hotspot, with housing prices expected to increase by 10-15 per cent, driven by both premium and mid-segment developments.

The East Periphery (Uppal, Pocharam, Hayath Nagar, and LB Nagar) is expected to see a surge in housing demand, supported by:

• Metro Phase II connectivity

• Hyderabad-Warangal Industrial Corridor

• Affordable property prices compared to Central Hyderabad

The region is set to attract homebuyers looking for mid-range and affordable housing, with prices expected to rise by 10-20 per cent in the next 3-5 years.

North and South Periphery to See Growth in Industrial and Warehousing Sectors

While office and residential markets flourish in the West and East Peripheries, the North and South Peripheries will focus on industrial and logistics growth.

• North Periphery (Medchal, Kompally, Shamirpet): Expected to become a major hub for Grade A warehouses, life sciences, and pharma-related developments, driven by its proximity to Genome Valley.

• South Periphery (Shamshabad, Adibatla, Tukkuguda): Will benefit from Rajiv Gandhi International Airport (RGIA), the Hyderabad-Bengaluru Industrial Corridor, and the Data Center Policy.

The demand for data centers in Hyderabad is also surging, with major operators planning to add over 350 MW of capacity in the next 3-5 years, primarily in the South Periphery.

While HITEC City, Gachibowli, and Financial District remain Hyderabad’s leading commercial hubs, the peripheries will account for 20-25 per cent of all new Grade A office supply in the coming years, significantly up from less than 5 per cent in 2024.

“By 2027, the total Grade A office stock in Hyderabad’s peripheries will grow to 20-25 million sft, from 13 million sft in 2024. This will help diversify Hyderabad’s commercial landscape and reduce pressure on established business districts,” said Vimal Nadar, Senior Director & Head of Research, Colliers India.

With strong policy support, infrastructure investments, and increasing demand, Hyderabad’s peripheral areas are set to redefine the city's real estate dynamics, positioning themselves as the next big growth hubs in South India.