Hyderabad Market Snapshot

Hyderabad, popularly known as the “City of Pearls,” is the capital of Telangana, India’s 29th state. The city has rapidly evolved into a bustling metropolis, functioning as the administrative, commercial, and industrial hub of the state. With Telangana’s focus on becoming a world-class hub for Information Technology and Biotechnology, Hyderabad has been at the forefront of this transformation. The city is also a pharmaceutical powerhouse, contributing over 30% to India’s total pharmaceutical production and 20% of its exports. A key highlight is Genome Valley, the country’s first and only systematically planned life sciences cluster, which further underscores Hyderabad’s vital role in the biotech sector.

Known for housing the world’s largest film studio complex, Ramoji Film City, the city boasts of being an entertainment centre in addition to the business hub.

Infrastructure and IT Growth

During the COVID-19 lockdown, the Telangana government capitalised on the pause in activity to enhance the city’s urban infrastructure, completing key projects in record time. This proactive approach has had a lasting impact on Hyderabad’s real estate market, making it more attractive for both business and investment.

Hyderabad is now a global centre for Information Technology, particularly with the development of Cyberabad and HITEC City. The state government’s strategic policies have fostered IT growth and attracted foreign investment, which has spurred the establishment of large international firms like Google, Microsoft, Samsung, Oracle, Amazon, and Facebook. Microsoft alone is expected to invest Rs. 15,000 crore (US$ 1.93 billion) over the next 15 years in Hyderabad to set up its largest Data Centre in the country. Hyderabad also accounts for approximately 20% of India’s total pharma export

The city also boasts the largest incubation centre for start-ups, T-Hub, which has made Hyderabad a destination for innovation and entrepreneurship.

The city’s booming IT industry has created a high demand for skilled professionals, leading to the establishment of several top-notch technical and management institutions that cater to this industry.

Medical Tourism

Hyderabad is quickly emerging as a hub for medical tourism, driven by competitive pricing, excellent air connectivity, and high-quality healthcare services. Each month, the city sees an influx of about 1,000 international visitors seeking medical care, primarily from African countries, the Middle East, and Southeast Asia. Private healthcare providers have expanded into new areas like Gachibowli, Nanakramguda, and Madhapur, fueling the city’s status as a major medical destination. In addition, the state government’s establishment of the country’s largest medical devices park at Sultanpur has further reinforced Hyderabad’s position as a healthcare leader. As a pharma and life sciences hub of the world, Hyderabad is poised to grow to a US$ 100 billion business generator by 2030.

A Rising Economic Power

Hyderabad has also emerged as a prominent educational and economic hub, drawing students and professionals from across India and around the globe. With esteemed institutions like the Indian School of Business (ISB), International Institute of Information Technology (IIIT), and National Institute of Fashion Technology (NIFT), the city offers a robust educational infrastructure. Its impressive economic growth has improved living standards and increased investment opportunities, making it a magnet for business and talent.

Notably, Hyderabad is home to over 467 ultra-high-net-worth individuals (UHNWI), with this number expected to increase by 56% to 728 by 2026. Gachibowli, in particular, is set to open 23 million square feet of office space over the next three years, cementing its status as one of India’s most important commercial markets.

A Booming Tourism Industry

In recent months, Hyderabad’s travel and tourism industry has significantly boosted the hospitality sector, driving record growth in occupancy rates, average rates, and revenue per available room (RevPAR). The city is set to see a wave of new commercial developments, including Grade A tech parks in Madhapur, Kokapet, Gachibowli, and HITEC City, as well as the Aerospace & Industrial Hub between Shamshabad and Adibatla. These developments will likely bring a surge in room night demand, further energizing the hotel market.

With the opening of the Rajiv Gandhi International Airport and the northwest expansion of the city, demand began shifting towards HITEC City (Hyderabad Information Technology and Engineering Consultancy City) and Gachibowli. Gachibowli has emerged as a thriving micro-market, attracting both international and domestic clientele. Historically, international customers have been a significant source of business for Hyderabad’s hotels. Although the pandemic temporarily shifted the city’s focus to domestic demand, with major IT firms establishing bases here, the return of international travel is expected to boost demand from regions like the US, UK, Middle East, and Africa. This influx of international visitors is anticipated to drive up average rates, particularly as international RFPs (Requests for Proposals) are negotiated at higher price points than their domestic counterparts. Hotel companies are also looking to increase contracted rates to counteract the rate stagnation experienced during the pandemic years. These areas, known for their booming IT sector, saw rapid development, eventually reaching saturation and forcing further expansion into emerging areas like Kokapet and Tellapur.

Today, hotel occupancies are largely driven by the Commercial and Extended-Stay segments, thanks to the presence of major companies like Deloitte, Microsoft, Amazon, and Tata Consultancy Services. The Meetings, Incentives, Conferences, and Exhibitions (M.I.C.E.) segment also plays a critical role, with large corporate events often held in HITEC City at venues like the Hyderabad International Convention Centre (HICC) and HITEX.

The Supply Glut

The hotel industry in Hyderabad has witnessed significant growth over the past decades, shaped by the city’s evolving commercial and residential landscape. Initially, the demand for hotels was concentrated in the Central Business District (CBD), which includes prominent areas like Begumpet, Banjara Hills, Jubilee Hills, and Mehdipatnam. The early 1990s saw the opening of landmark hotels such as Taj Banjara, Taj Krishna, Taj Deccan, ITC Kakatiya, and Green Park, solidifying Hyderabad’s hospitality footprint. It took more than a decade for the city to see the addition of other branded properties, such as the Marriott Hotel & Convention Centre.

Hyderabad, an expanding centre for technology, business, and tourism, is experiencing a notable shortage in hotel capacity. Most of the current hotels were built in 2018/19, and until recently, there were no new upscale or luxury options available until The Leela Hyderabad opened in 2025. As the city attracts more IT firms, global conferences, and high-profile events, its existing hospitality infrastructure has proven insufficient. This surge in demand for quality accommodations, particularly in premium segments, has resulted in higher room rates and reduced availability.

As Hyderabad experiences rapid growth, the city’s limited supply is driving increased demand, not only for business hotels but also for leisure resorts and wedding destinations, which are expected to continue doing well alongside its booming business environment. Hotelivate predicts a bright future for the hospitality market, driven by an influx of both international and domestic travellers, solidifying Hyderabad’s status as one of India’s most dynamic cities.