Hyderabad’s peripheral real estate markets poised for transformative growth amid infrastructure growth

While established hotspots in West and Central Hyderabad continue to drive real estate activity, peripheral areas—including the North, South, East, and West peripheries—are projected 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 these peripheral areas expected to rise by 10-20% over the same period.

“Hyderabad’s office market continues to mature, driving one-fifth of the demand and over one-fourth of the new supply across the top six 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, particularly areas like Kokapet, Neopolis, and Narsingi, is likely to witness heightened commercial activity, driven by price arbitrage compared to established IT hubs of Gachibowli and HITEC City, along with enhancements in metro connectivity,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

He further noted that 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 current levels, the price arbitrage will persist, continuing to attract domestic and