IT corridor sees rentals grow

IT hubs, GCC expansion and infrastructure continue to shape the city's rental market

Property Pusle

Hyderabad has emerged as one of India's strongest residential rental markets, driven by its expanding IT sector, Global Capability Centres (GCCs) and relatively affordable property prices. According to industry estimates, the city's average residential rental yield is around 3.9 per cent, making it one of the better-performing rental markets among major Indian metros.

Gachibowli continues to lead the city's rental market, supported by the presence of major employers including Microsoft, Amazon, Deloitte and Accenture. The locality attracts a large workforce employed in the IT and financial services sectors, sustaining demand for rental housing. A typical two-bedroom apartment commands monthly rentals of ₹25,000-35,000, with rental yields estimated at 4-5 per cent.

Neighbouring Kondapur has also emerged as a preferred rental destination due to its proximity to Hitec City, established social infrastructure and good connectivity. Industry estimates place rental yields in the locality at 4.5-5 per cent, supported by demand from young professionals and families.

For investors seeking a combination of rental income and long-term capital appreciation, Kokapet and Narsingi continue to attract attention. Located close to the Financial District and the upcoming Neopolis development, both micro-markets have witnessed significant residential development and continue to attract premium projects catering to higher-income tenants.

Tellapur is gradually emerging as an affordable alternative within Hyderabad's western corridor. Improved connectivity through the Outer Ring Road and continued employment growth in nearby IT hubs have strengthened rental demand, while also offering scope for future appreciation. Emerging locations such as Osman Nagar are also witnessing increased interest as residential development expands westward.

Real estate experts say rental performance depends not only on the locality but also on factors such as proximity to employment centres, Metro connectivity, schools, hospitals and other social infrastructure. As Hyderabad continues to attract multinational companies and GCC investments, the western corridor is expected to remain one of the city's most active residential rental markets.

New hotspots

• Hyderabad's average rental yield is 3.9%.
• Gachibowli sees ₹25,000-35,000 monthly rent; 4-5% yield.
• Kondapur: Estimated 4.5-5% rental yield.
• Kokapet & Narsingi: Rental demand with appreciation potential.
• Tellapur & Osman Nagar: Emerging rental destinations.
• IT growth and GCC expansion continue to drive demand.