Hyderabad's Peripheral Areas Poised For Real Estate Boom Driven By Metro Phase II, RRR: Colliers India

Hyderabad's peripheral realty market is booming as new hotspots, as per a new report by Colliers India released on March 11, 2025. Major infra projects, including Metro Phase II, the Regional Ring Road (RRR), and industrial corridors, are expected to drive this growth. 

Government policies such as Information & Communication Technology 2.0 and the Micro, Small, and Medium Enterprises (MSME) policy have enhanced the business environment in these areas.

The peripheral locations included the North, South, East, and West peripheries. These areas could account for 12 per cent to 15 per cent of the city’s Grade A office stock by 2030. Over the next three to five years, these areas are expected to contribute 5 per cent to 10 per cent of annual office space demand and 20 per cent to 25 per cent of new supply. The residential market is also projected to see price increases of 10 per cent to 20 per cent in these zones.

West Periphery Leads Office and Residential Growth

Arpit Mehrotra, Managing Director, Office Services at Colliers India, said in the official release, "Hyderabad’s office market continues to mature, driving one-fifth of demand and over one-fourth of new supply across India’s top six cities in 2024."

The report projected that the West Periphery locations, such as Kokapet, Neopolis, and Narsingi, would see significant commercial activity. Especially as price gaps compared to IT hubs like Gachibowli and HITEC City make them attractive to businesses. Grade A office space demand and supply are likely to rise sharply, with average rentals in the area projected to increase by 10 per cent to 15 per cent.

Housing demand is also rising in the West Periphery, with prices in Kokapet, Neopolis, and Nalagandla increasing by over 50 per cent in the past five years. Another 10 per cent to 15 per cent growth is anticipated, particularly in upscale developments. 

Meanwhile, affordable and mid-segment housing was also seen to be gaining traction in areas such as Tellapur, Lingampally, and Miyapur.

South and East Peripheries Set for Industrial and Residential Growth

Industrial and warehousing developments in the South Periphery, including Shamshabad and Kothur, are taking advantage of proximity to Rajiv Gandhi International Airport and the anticipated Hyderabad-Bengaluru Industrial Corridor. Data centres are also expected to see major expansion, with over 350 MW of capacity planned in the next three to five years.

Additionally, the East Periphery is positioned for strong residential growth, charged by planned infrastructure such as Metro Phase II and the Hyderabad-Warangal Industrial Corridor. 

Meanwhile, affordable housing demand is expected to increase in areas including Uppal, Pocharam, and LB Nagar, where property prices remained 40 per cent to 50 per cent less when compared with central Hyderabad. 

North Periphery Gains Traction in Industrial and Alternative Real Estate

The North Periphery, particularly Medchal, Kompally, and Shamirpet, is rising as a hub for industrial and warehousing activity. This growth is supported by upcoming projects such as the RRR and the Hyderabad-Nagpur Industrial Corridor. The area is also expected to see increased investment in life sciences and pharmaceutical infrastructure due to its proximity to Genome Valley.

Vimal Nadar, Senior Director & Head of Research at Colliers India, said in the official release, "Apart from office and industrial segments, Hyderabad's peripheral areas are seeing a surge in residential real estate activity. Upscale offerings in Kokapet and Neopolis are gaining traction, while affordable and mid-range housing is on the rise in Uppal and Pocharam. Rental housing in industrial hubs such as Medchal is also set to grow."