Hyderabad has become the fastest-growing city among six major Indian urban centers, fueled by rapid infrastructure development and a booming real estate market.
According to the India Prime City Index by Knight Frank India, Hyderabad is leading the charge in real estate growth, outpacing major metropolises like Mumbai, Delhi, and Bengaluru.
Hyderabad’s Real Estate Boom The city has experienced significant real estate growth, achieving a Compound Annual Growth Rate (CAGR) of 10 percent in residential launches over the past decade.
The report underscores Hyderabad’s diverse economy, which spans beyond IT to include key sectors like pharmaceuticals and manufacturing. This economic diversity has played a vital role in enhancing the city’s stability and growth potential.
Infrastructure Driving Growth Hyderabad’s robust and well-planned infrastructure, featuring an expansive network of roads, flyovers, underpasses, and ring roads, has been a key driver of housing demand. Strategic government investments in major projects such as the Hyderabad Metro Rail and outer ring roads have further bolstered the city’s real estate development.
The city’s continued emphasis on fostering a business- and resident-friendly environment highlights its potential to maintain and strengthen its position as a leading global city in the years ahead.
Fastest-Growing Cities in India Based on Real Estate Growth:
- Hyderabad
- Bengaluru
- Mumbai-MMR
- Delhi-NCR
- Ahmedabad
- Chennai
Performance of Other Cities
While Hyderabad leads in real estate growth, other Indian cities also excel in various key areas.
- Mumbai-MMR continues to show steady growth across all metrics, solidifying its role as India’s financial capital.
- Delhi-NCR ranks highest for its exceptional physical infrastructure and governance.
Bengaluru, on the other hand, demonstrates impressive socio-economic growth, fueled by its thriving service sector, which attracts a highly skilled workforce from across India and beyond.
“India’s rise as a global economic powerhouse is driven by the outstanding performance of a select group of cities that have evolved into both economic and cultural hubs. Each of these six cities presents unique opportunities to promote sustainable and inclusive urban development,” said Gulam Zia, Senior Executive Director, Knight Frank India.
Hyderabad stands out for its growing real estate market, where it leads among the six cities in this area.
Bengaluru ranks second in real estate growth but remains the top choice for commercial occupiers, with steady growth in residential real estate, according to the report. The city boasts India’s highest workforce participation rate at 76 percent, alongside an unemployment rate of just 1.8 percent—the lowest among the six cities analyzed.
Delhi leads in physical infrastructure, with the Delhi Metro being India’s largest metro network. With a daily ridership of 6.8 million and an extensive network spanning over 350 kilometers, it ensures seamless connectivity across the National Capital Region (NCR).
A Promising Future for Hyderabad’s Real Estate
Hyderabad’s real estate market is set for continued growth, backed by ongoing investments in infrastructure and urban planning.
With its affordability, abundant business opportunities, and high quality of life, the city remains an appealing destination for both homebuyers and investors.
