Peripharies emerge Hyderabad’s real estate hot spot growth hubs: Colliers

Hyderabad’s real estate growth is rapidly expanding beyond its core hubs, with peripheral areas emerging as the city’s new growth frontiers, according to a report by real estate services company Colliers.

In its report ‘Hyderabad: Emerging Real Estate Growth Hotspots’, Colliers said the growth is largely driven by the upcoming Metro Phase II extension, proposed Regional Ring Road (RRR) and various industrial corridors that are coming up on the outskirts of the city.

“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,” Arpit Mehrotra, Managing Director, Office Services, Colliers India, said.

“Both demand and supply of Grade A office spaces are likely to grow multifold in the next few years,” he said.

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 & Hi-Tec City and enhancements in metro connectivity.

“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 and global occupiers, including GCCs,” he said.

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 per cent of Hyderabad’s Grade A office stock and 5-10 per cent of annual office space demand in the next 3-5 years, the report said.

The residential market is also set to witness significant traction, with property prices in the peripheral areas projected to rise 10-20 per cent over the next 3-5 years.

Emerging areas in the city’s periphery are likely to account for 20-25 per cent of Hyderabad’s Grade A new supply, significantly up from a current share of less than 5 per cent. Moreover, areas including Kokapet, Shamshabad, Uppal and Pocharam are expected to see a notable rise in Grade A space uptake.