How Foreign Investors Are ChangingQ Hyderabad’s Commercial Real Estate Market

Hyderabad’s Growing Appeal for Global Investors 

Hyderabad has emerged as a top destination for foreign direct investment (FDI) in commercial real estate, thanks to liberalized government policies, expanding IT hubs, and a thriving corporate ecosystem. Recent data shows that India’s real estate sector attracted over $26.6 billion in foreign investments between 2017 and 2022, with 40% of this directed towards commercial properties. 

Hyderabad’s strategic location, improved infrastructure, and high rental yields make it an attractive choice for global corporations, institutional investors, and private equity firms looking to expand their portfolios. 

Why Global Investors Are Choosing Hyderabad 

FDI Reforms & Government Policies 

• • • 100% FDI in real estate projects under the automatic route has made Hyderabad more accessible to foreign investors. 

• • • The Union Budget 2025 increased FDI caps in infrastructure and commercial property development, ensuring higher global participation. 

• • • SEBI-backed fractional ownership models allow foreign investors to co-own high-value properties, driving more institutional capital into Hyderabad. 

High Rental Yields & Corporate Demand 

• • • Hyderabad’s commercial rental yields range between 5-8%, higher than Bengaluru and Mumbai in several micro-markets. 

• • • MNCs and Global Capability Centers (GCCs) from the US, UK, and Europe are actively leasing premium office spaces in Financial District, HITEC City, and Kokapet. 

• • • Large-scale investments in business parks, IT SEZs, and retail hubs are leading to record leasing transactions. 

Infrastructure & IT Park Developments 

• • • Hyderabad Metro Expansion Phase 2 is expected to further boost commercial property values near metro corridors. 

• • • New IT parks in Tellapur and Shamshabad are attracting global technology firms, increasing demand for office spaces. 

• • • Global brands in finance, technology, and e-commerce are setting up regional headquarters in Hyderabad, further fueling foreign investments. 

Major Foreign Investment Deals in Hyderabad (2025) 

• • • Kokapet SEZ: A Global Private Equity Firm Invests ₹2,000+ Cr 
      A leading international investment fund acquired prime land in Kokapet for SEZ development, making it one of the highest-valued commercial deals of the year. 
    • Financial District: Foreign REITs Acquire Premium Office Spaces 
      Several real estate investment trusts (REITs) from Singapore and the Middle East have purchased Grade A office spaces in Hyderabad’s Financial District, driven by strong corporate leasing demand. 
    • Luxury Retail Expansion in Banjara Hills 
      Global luxury brands like Rolex, Gucci, and Louis Vuitton have secured long-term leases in Hyderabad’s high-end retail corridors, following trends seen in Delhi and Mumbai. 

What This Means for Investors 

✔ Hyderabad is now one of India’s most attractive commercial investment hubs, alongside Mumbai and Bengaluru. 
✔ Foreign investors are driving large-scale infrastructure projects, boosting overall real estate demand. 
✔ MNCs and institutional funds are increasing their footprint, ensuring long-term value growth for commercial properties.