210 211
1 Hyderabad City Overview
Hyderabad, the capital city of both the states of Telangana and Andhra Pradesh, is an established IT/ITES, pharmaceutical
and biotech destination. With the people demanding for a separate State of Telangana for several years since independence,
the Central Government announced on 30
th
July 2013, the creation of Telangana state from the existing State of Andhra
Pradesh. The State of Telangana became the 29
th
state of India when it was formed on 2
nd
June 2014. Hyderabad will be
the joint capital for both Telangana and erstwhile Andhra Pradesh for a period of 10 years.
The city of Hyderabad is spread over five districts namely Hyderabad, Ranga Reddy, Medak, Nalgonda and Mahboobnagar.
The Hyderabad Metropolitan area (under the jurisdiction of Hyderabad Metropolitan Development Authority) comprises
nearly 7,229 sq km. Industrial activity in Hyderabad is quite broad-based with sectors like IT/ITES, biotechnology, apparel
parks, pharmaceuticals, construction having presence in the city. IT/ITES and pharmaceutical & biotechnology industry are
the dominant players and are expected to play an increasing role in the future.
Low cost of living as compared to other Indian metros, good quality of life, rapid pace of infrastructure development, and
a proactive government have led to increased corporate interest and investments in the city. With the growing competition
amongst Indian states to attract investments in various industries and service sector, Hyderabad State with its proactive
approach has undertaken several infrastructural initiatives to equip the city to handle large-scale projects and investments in
the city. The population of Hyderabad as per 2011 census is 7.8 million.
2 Hyderabad City Real Estate – Key Demand Drivers
The city has witnessed expansion both in terms of its area and population over the last few years. The growth in Hyderabad
city’s economic base (primarily the establishment of IT/ITES industry) has altered the real estate dynamics in the city. There
has been development of all segments of real estate (office space, residential, retail and hospitality) in the city. The entry of
leading national and international developers to the city has accelerated real estate development in the city.
Primary growth drivers in the city are:
• IT/ITES services
• Pharmaceutical & biotechnology manufacturing, research and development
• Scientific research and development
The city houses many of the Fortune 500 corporations, majority of them related to the IT/ITES industry such as Microsoft,
Computer Associates, Amazon, GE, IBM, AMD, Facebook, Accenture, Google, Motorola, Deloitte, Dell, QUALCOMM, Verizon,
Convergys and Hewlett-Packard. Besides international giants, Indian companies also have a strong presence here. Infosys,
Wipro, Cognizant Technologies, TCS, ICICI, Polaris and more have set up their development centres in the city.
The pharmaceutical & biotechnology industry is a dominant player and is expected to play an increasing role in the future in
the export of pharmaceutical products. Hyderabad is considered as the ‘bulk drug’ capital of the country due to the presence
of a large number of bulk drug units and currently accounts for about 30-35%
26
of the total production in the country.
Hyderabad is also home to several financial services companies like Wells Fargo, GE, Deloitte and UBS. The establishment of
these industries has triggered the growth of the commercial office market in Hyderabad.
G
H y d e r a b a d C omm e r c i a l M a r k e t O v e r v i e w
26
Business Line- April 28, 2013
