Gurgaon, March 11, 2025: Hyderabad’s peripheral areas are emerging as new real estate growth corridors, supported by infrastructure expansion, government policies and relatively affordable property prices, according to a report by real estate consultancy Colliers.
The company’s report, Hyderabad: Emerging Real Estate Growth Hotspots, estimates that the city’s North, South, East and West peripheral markets could account for 12-15% of its Grade A office inventory over the next three to five years. These areas are also expected to contribute 5-10% of annual office space demand and 20-25% of new office supply during the period.
Residential property prices across the peripheral markets could rise by 10-20% over the next three to five years, the report said.
The proposed Regional Ring Road, Metro Phase II extension and industrial corridors are expected to support development beyond Hyderabad’s established commercial hubs. Government initiatives, including Information & Communication Technology 2.0, the MSME policy and the Data Center policy, are also likely to encourage investment.
The West Periphery, including Kokapet, Neopolis and Narsingi, is expected to benefit from its proximity to major IT hubs such as Gachibowli and HITEC City. Lower real estate costs and improving connectivity could attract domestic companies and global capability centres.
“Hyderabad’s peripheral areas are set to enter a transformative growth phase, fueled by upcoming infrastructure projects and supportive government policies,” said Arpit Mehrotra, Managing Director, Office Services, Colliers India.
He added that Grade A office demand and supply in the West Periphery could grow significantly in the coming years, while rental values may increase by 10-15%.
The East Periphery is expected to receive a major boost in residential real estate, while the North and South Peripheries could see increased demand for industrial and warehousing facilities. Data centres and life sciences are also expected to gain traction across the city’s peripheral markets.
Colliers said established commercial areas in West and Central Hyderabad would continue to drive overall real estate activity, even as emerging corridors attract new investment.
