Why Hyderabad Is Becoming The Real Estate Capital Of South India

Hyderabad is no longer just "up and coming" — it is firmly establishing itself as South India's top real estate destination. While property markets in other cities are slowing down, Hyderabad is showing strength even during tough times.

In Q2 2025, housing sales across India's top 7 cities dropped by 20% year-on-year. Hyderabad also saw a dip of 27%. But here's the difference — sales in Hyderabad still grew 9% quarter-on-quarter, proving that investors and homebuyers haven't lost confidence in this city.

1. Strong Economy Means Strong Demand
IT and Tech Are Still Booming

In FY 2024-25, Hyderabad's software exports reached ₹1.42 lakh crore.
IT job openings increased by over 41% in the first half of 2024.
HITEC City, Gachibowli, and the Financial District remain hot housing zones.

Global Companies Are Moving In

Over 355 Global Capability Centres (GCCs) operate in Hyderabad, employing 3+ lakh people.
GCCs made up 41% of office space deals in early 2025.
35% of upcoming GCCs in India may be located in Telangana.

Pharma and Life Sciences Are Also Growing

Pharma City (expected end of 2025) and Genome Valley are major employment hubs.

Rising Income Levels

Telangana's economy grew over 10% in 2024-25.
Per capita income rose to ₹3.79 lakh.

2. Better Infrastructure Is Changing the Map
Metro Expansion

Phase 2 adds 70 km of metro lines connecting Kokapet, LB Nagar, and the airport by 2027.
Property prices in newly connected areas have already increased by up to 22%.

Outer and Regional Ring Roads

ORR improves connectivity and opens new residential zones.
RRR (Regional Ring Road) to be completed in 2026, further boosting access.

Airport Expansion

Rajiv Gandhi International Airport is being upgraded.
Nearby zones like Rajendra Nagar are growing fast with luxury housing like Godrej Regal Pavilion.

3. Business-Friendly Rules Make It Easier to Build

TS-iPASS gives developers faster approvals and smoother launches.
Government offers incentives under Electronics Policy 2025 and MSME Policy.
RERA compliance builds buyer trust through transparent practices.

4. A City Where People Want to Live

Hyderabad offers a perfect mix of heritage and modern convenience. From excellent hospitals and schools to green areas and clean roads, the city stands out for its livability.

Rents are 24% lower than in Bengaluru.
Living costs are about 30% cheaper, drawing more families and professionals to relocate.

5. What's Happening in the Market Right Now (Q2 2025)
Homes

Prices are up 11% year-on-year.
Over 50% of new supply is in the ₹2.5 crore+ luxury segment.
Suburban zones like Medchal-Malkajgiri and Rangareddy lead property registrations.

Commercial Properties

Office space demand is led by GCCs and IT firms.
Rents in HITEC City rose 9% in early 2025.
Hyderabad’s office stock expected to grow by 1.5x by 2030.

Rentals

High-end apartments rent for ₹2–5 lakh/month.
2BHKs in Kukatpally rent for ₹30,000–₹35,000/month.
Rental yields may reach 5% in 2025.

6. Why This Matters for You

Investors: Expect long-term appreciation, rental income, and a growing NRI market.
Developers: Abundant land and fast approvals mean faster turnaround.
Companies: Lower operational costs and easy employee access.
Families & NRIs: Affordable, regulated market with world-class infrastructure.
Banks: Reduced risk due to demand stability and strong legal backing via RERA.

7. What's Ahead for Hyderabad

Telangana aims to grow its share of India's GDP from 2.5% to 8% by 2047. Hyderabad will lead the way with investments in tech, AI, EVs, and urban infrastructure.

Despite small dips, Hyderabad keeps growing stronger each quarter. With its balance of affordability, opportunity, and liveability — it truly is South India’s new real estate capital.