Peripheral Areas of Hyderabad, Emerging as Real Estate Growth Frontiers
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.
"Hyderabad’s office market continues to mature, driving one-fifth of the demand and over one-fourth of the new supply across the top 6 cities in India during 2024. The city’s peripheral areas are set to enter a transformative growth phase, fueled by upcoming infrastructure projects and supportive government policies. The West Periphery micro-market in particular, including Kokapet, Neopolis, Narsingi etc. is likely to witness heightened commercial activity, driven by price arbitrage compared to established IT hubs of Gachibowli & HITEC City and enhancements in metro connectivity. Both demand and supply of Grade A office spaces are likely to grow multifold in the next few years. Although average rentals in the West Periphery micro market could potentially increase by 10-15% from the current levels, the price arbitrage will persist and continue to be an attractive proposition for domestic & global occupiers, including GCCs." says Arpit Mehrotra, Managing Director, Office Services, Colliers India.
