Hyderabad's Real Estate Market Witnesses Significant Rent Increases in Gachibowli and Hitech City
A recent report by real estate consulting firm Anarock reveals a substantial rise in house rents in Gachibowli and Hitech City, with increases over 50 percent in the past five years. This surge is driven by the growing IT workforce and improved connectivity.
Real EstateHouse RentsGachibowliHitech CityIt WorkforceReal EstateAug 14, 2025
According to a report by real estate consulting firm Anarock, across 14 key micro markets, capital values rose between 24-139 percent and rentals climbed 32-81 percent from the end of 2021 to Q2 2025. While Hyderabad saw significant growth in house rents in Gachibowli and Hitech City, Sector-150 in Noida recorded the highest surge with 139 percent capital growth and 71 percent rental growth. This growth is attributed to planned township projects and strong investor demand.
“Markets with new metro lines, expressways, or airport proximity consistently outperformed, showing that connectivity and jobs drive both price and rent growth,” the report noted. The data highlights the importance of infrastructure and employment opportunities in driving property value and rental prices.
The report provides a detailed breakdown of capital value growth in various micro markets across major cities. For instance, in Bengaluru, Sarjapur Road saw a 79 percent increase in capital values, while Thanisandra Main Road experienced an 81 percent rise. In Hyderabad, Hitech City saw a 70 percent increase, and Gachibowli witnessed an 87 percent rise. Other cities like Pune, NCR, MMR, Kolkata, and Chennai also reported significant growth in capital values.
From 2021-end to Q2-2025, the average monthly rent for a 1,000 sq. ft 2BHK home in Gachibowli increased from Rs 22,000 to Rs 36,600. Similarly, in Hitech City, the rent for the same size home rose from Rs 23,000 to Rs 36,350. The report also details the rental growth in other micro markets, such as Sohana Road in NCR, which saw a 50 percent increase, and Sector-150 in Noida, which experienced a 71 percent rise.
Even as national rental inflation has eased, these two pockets in Hyderabad continue to post double-digit annual increases. This trend is primarily due to the unrelenting demand from a growing IT workforce and the scarcity of ready-to-move-in apartments. The report emphasizes the need for more housing options to meet the increasing demand and maintain a balanced market.
The data underscores the importance of strategic planning and investment in infrastructure to support sustainable real estate growth. For potential investors and property buyers, understanding these trends can provide valuable insights into the most promising areas for investment in the coming years.
In conclusion, the real estate market in Hyderabad, particularly in Gachibowli and Hitech City, is experiencing a robust upward trajectory. The combination of strong job growth, improved connectivity, and limited housing supply is driving this trend. For those looking to capitalize on these opportunities, staying informed about market dynamics and investing in well-connected areas can yield significant returns.
Frequently Asked Questions
What is driving the increase in house rents in Gachibowli and Hitech City?
The increase in house rents in Gachibowli and Hitech City is primarily driven by the growing IT workforce and the scarcity of ready-to-move-in apartments. Improved connectivity and infrastructure also play a significant role.
How much has the rent increased in Gachibowli and Hitech City over the past five years?
Over the past five years, the rent for a 1,000 sq. ft 2BHK home in Gachibowli has increased from Rs 22,000 to Rs 36,600, and in Hitech City, it has risen from Rs 23,000 to Rs 36,350.
Which other city saw the highest capital growth according to the Anarock report?
Sector-150 in Noida saw the highest capital growth with a 139 percent increase and a 71 percent rise in rental growth.
What factors are important for driving both price and rent growth in real estate markets?
Connectivity, such as new metro lines and expressways, and job opportunities are key factors driving both price and rent growth in real estate markets.
What advice does the report give to potential investors in the real estate market?
The report advises potential investors to focus on areas with strong job growth, improved connectivity, and limited housing supply to capitalize on the most promising investment opportunities.
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