Hyderabad Rental Market: Gachibowli and HITECH City Lead with 50%+ Hik

In a remarkable swing, Hyderabad’s rental real estate market has witnessed a surge of over 50% in house rents over the past five years in two key locations, Gachibowli and HITECH City. This spike reflects explosive demand from the city’s burgeoning IT workforce and a dearth of ready-to-move rental properties.

Capital and Rental Values Climb Across Hyderabad’s Key Markets

According to a report by Anarock, between late 2021 and Q2 2025:

•          Gachibowli: Rents for a 1,000 sq ft home climbed from ₹22,000 to ₹36,600, marking a 66% increase.
•          HITECH City: Rents for a similar home rose from ₹23,000 to ₹36,350, an increase of 58%.

On a broader level, across 14 key micro-markets in Hyderabad:

•          Capital values rose from 24% to 139%, while rental values increased between 32% and 81% over the same period.

Key Factors Driving Hyderabad’s Soaring Rents

Proximity to IT Hubs

Gachibowli and HITECH City are prime job locations, home to many tech firms and attracting professionals who prioritize living close to their workplaces.

Limited Rental Inventory

With infrastructure growing unevenly and a lag in new move-in-ready projects, supply has not kept pace with demand.

Infrastructure Connectivity

Areas supported by metro access, expressways, and upcoming connectivity projects such as Metro Phase II continue to outperform, highlighting infrastructure as a key performance driver.

Residential Demand Climbing Steadily

Demand for residential real estate in Gachibowli, HITECH City, and Kondapur has surged by around 80% over the past five years.

Capital Value Appreciation Outpacing Rent Gains

Between the end of 2021 and the end of 2024, Gachibowli’s property prices rose from ₹5,010 to ₹8,900 per sq ft (+78%) while rents grew by about 62%. HITECH City saw prices climb from ₹5,753 to ₹9,300 per sq ft (+62%), with rent growth around 54%.

Recent Moderation in Rental Growth

While the long-term trajectory remains steep, quarterly rent hikes have slowed. In Q2 2024, increases averaged 3% compared to 5% in Q1 2024, partly due to new housing supply entering the market.

Rental Growth Slows Across Major Indian Cities in 2025

Despite this localized surge, earlier in H1 2025, broader rental growth across metros like Hyderabad, Bengaluru, Delhi-NCR, and others has moderated to 7–9%, down from 12–24% during 2021–2024. This cooling is largely attributed to increased housing supply in certain urban clusters, easing of post-pandemic migration pressures, and tenants showing greater price sensitivity. Market analysts note that while high-demand pockets near major employment hubs continue to command premium rates, the overall rental landscape is entering a more balanced phase, where growth is driven by steady demand rather than aggressive bidding wars.

Hyderabad Property Prices Set for Continued Growth

Capital Values

Prime Hyderabad locations are still witnessing solid growth, with prices expected to climb further, especially in peripheral areas that will benefit from upcoming metro expansion.

Peripheral Zones

Areas such as LB Nagar, Kokapet, and Adibatla are projected to see property price increases of 10–20% over the next 3–5 years, driven by infrastructure upgrades and ongoing residential development.

Luxury Segment Expansion

High-end residential demand is strengthening, with the share of flats priced between ₹1.5 crore and ₹3 crore rising from 28% to 34% in H1 CY25 compared to H1 CY24.

Conclusion

Hyderabad’s IT corridors, Gachibowli and HITECH City, have emerged as epicenters of rental growth, with surging demand powering rent increases of over 50% in the past five years. Though the recent pace has cooled slightly, fundamentals like connectivity, infrastructure, and sustained residential interest keep these zones on an upward trajectory.

For tenants, the challenge lies in affordability amidst premium prices. For investors, the interplay between soaring capital values and robust rental demand presents opportunities worth navigating with strategy.

         FAQs       

Why have rents increased so much in Gachibowli and HITECH City?

Rents have jumped due to a combination of high demand from IT professionals, proximity to major tech offices, improved infrastructure, and limited availability of ready-to-move properties. The two areas sit at the heart of Hyderabad’s IT corridor, making them prime rental destinations.

Are property prices also rising in Gachibowli and HITECH City?

Yes. Between end-2021 and end-2024, capital values in Gachibowli rose by 78%, and in HITECH City by 62%, outpacing even the strong rental growth.

Has the pace of rent hikes in Gachibowli and HITECH City slowed recently?

Yes. In Q2 2024, rents in both areas increased by about 3%, compared to 5% in the previous quarter. The slight cooling is linked to new housing supply in these micro-markets.

How do rent hikes in Gachibowli and HITECH City compare to other Indian metros?

While major cities like Bengaluru, Delhi-NCR, and Pune have recorded rental growth of 7–9% in H1 2025, Gachibowli and HITECH City have seen far sharper increases over the past five years.