Hyderabad: Hyderabad’s western growth corridor continues to witness a remarkable surge in both residential and commercial rentals, driven by record office leasing, rapid expansion of Global Capability Centres (GCCs), and increasing demand from IT professionals. Localities such as Kondapur, Gachibowli, Kokapet, Financial District, Nanakramguda and Narsingi have emerged as some of the hottest real estate destinations in the country, with rental values climbing steadily over the past year.
IT Corridor Witnessing Strong Rental Growth
The demand for housing near Hyderabad’s IT hubs has continued to outpace supply, resulting in higher rents across major residential markets. Professionals relocating to the city, return-to-office policies adopted by technology companies and continued hiring by multinational firms have significantly increased demand for apartments close to workplaces.
According to recent market reports, premium residential areas such as Narsingi and Kokapet have recorded one of the strongest rental growth rates in Hyderabad. Average monthly rentals in these localities now range between ₹28,000 and ₹38,000 for premium apartments, while rental values have increased by around 10% year-on-year.
Similarly, Madhapur and Gachibowli continue to command monthly rentals ranging from approximately ₹30,000 to ₹37,000 for quality residential apartments, depending on the project and amenities.
Kondapur, Gachibowli and Financial District Continue to Dominate
Industry experts say that Kondapur, Gachibowli, Raidurg and the Financial District remain Hyderabad’s strongest office micro-markets. These areas continue to attract multinational companies, GCCs, IT firms and flexible workspace operators, resulting in sustained demand for nearby residential properties.
Knight Frank India reported that Hyderabad recorded 7.5 million sq. ft. of office leasing during the first half of 2026, representing a 29% year-on-year increase—the highest first-half office leasing volume ever recorded in the city. Global Capability Centres accounted for nearly 45% of total office leasing, reflecting Hyderabad’s growing importance as a technology and innovation hub.
The Suburban Business District, which includes Kondapur, HITEC City, Raidurg and the Financial District, accounted for nearly 60% of all office leasing during the period. Average commercial office rents in these areas also increased by around 11% year-on-year.
Commercial Rentals Also Moving Up
Not only residential properties, but commercial office rentals are also witnessing healthy appreciation. Hyderabad’s Grade-A office market continues to benefit from strong demand and limited availability of premium office space.
Recent reports indicate that average transacted office rentals in Hyderabad have increased to nearly ₹80 per sq. ft. per month, while rental growth has been particularly strong in major IT corridors where vacancy levels continue to decline despite new supply entering the market.
Office vacancy has reduced considerably over the past year as large multinational companies continue expanding operations in Hyderabad. Major occupiers include technology firms, financial institutions, consulting companies and global capability centres.
Kokapet Emerging as Luxury Growth Corridor
Among Hyderabad’s rapidly developing areas, Kokapet has become one of the city’s fastest-growing premium residential destinations. The locality has benefited from the development of Neopolis, large-scale commercial investments and excellent connectivity to the Financial District and Gachibowli.
Real estate consultants note that Kokapet and nearby Narsingi continue to attract IT professionals, NRIs, senior executives and institutional investors looking for premium housing. The western corridor stretching from Gachibowli and the Financial District to Kokapet, Neopolis and Narsingi remains Hyderabad’s preferred address for high-end residential developments.
Registration Values Expected to Increase
The rapid rise in market prices has also prompted the Telangana Government to consider revising official property registration values across western Hyderabad. Reports suggest that areas such as Kokapet, Gachibowli, Raidurg, Financial District and Chandanagar could witness significant revisions as current government guidance values remain well below prevailing market prices.
Officials believe the revision will better reflect actual market conditions while improving state revenue collections.
Why Demand Continues to Rise
Several factors continue to support Hyderabad’s booming rental and real estate market:
- Rapid expansion of Global Capability Centres (GCCs)
- Record office leasing by multinational companies
- Growth of the Financial District and HITEC City
- Large-scale infrastructure projects including Metro expansion, Regional Ring Road (RRR) and Future City
- Steady inflow of IT professionals and corporate employees
- Limited availability of premium residential inventory near major employment hubs
Real Estate Momentum Expected to Continue
Property consultants expect Hyderabad’s western corridor to remain one of India’s strongest real estate markets over the coming years. With office demand continuing to grow, several multinational companies announcing expansions and infrastructure projects progressing across Telangana, rental demand is expected to remain robust in areas such as Kondapur, Gachibowli, Kokapet, Nanakramguda, Narsingi and the Financial District.
While higher rentals may pose affordability challenges for some tenants, the sustained demand highlights Hyderabad’s emergence as one of India’s fastest-growing commercial and residential real estate markets, reinforcing Telangana’s position as a preferred destination for investment, technology and urban development.
