City’s GDP to touch US$ 201.4 billion by 2035, says report
The report underscores Hyderabad’s remarkable economic growth, with a yearonyear increase of 8.47%. It ranks among the fastestgrowing cities globally between 2019 to 2035
Arecent report titled ‘India Real Estate: A Decade From Now,’ jointly released by Knight Frank India and the Confederation of Indian Industry (CII), predicts a significant surge in Hyderabad’s Gross Domestic Product (GDP). In 2018, the city’s GDP was recorded at US$ 50.6 billion, and it is anticipated to soar to US$ 201.4 billion by 2035.
The report underscores Hyderabad’s remarkable economic growth, with a yearonyear (YoY) increase of 8.47%. It ranks among the fastestgrowing cities globally between 2019 to 2035, securing the third position among the top 10 cities.
The report further projects that the value of the Indian real estate sector will reach an estimated US$ 1.5 trillion by 2034, constituting 10.5% of the total economic output by then. “Cities are the loci of economic growth as they enable the interaction between the firms and job seekers; providing immense employment opportunities and output generation,” the report stated.
Luxury housing sales across India’s top eight cities surged from 16% in 2018 to a notable 34% in 2023. The report attributes this growth trajectory to factors such as the growing economy, salary increments in the highpaying services sector, and the increasing numbers of High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs), all of which continue to drive demand for luxury housing.
Hyderabad garnered attention in the realm of Real Estate Investment Trusts (REITs), with Mindspace Business Parks REIT having a substantial 14.1 million square feet space in the city, and Nexus Select Trust Retail REIT occupying 0.8 million square feet.
The report highlights Private Equity (PE) investments across cities, with Bangalore, Pune, and Hyderabad collectively accounting for US$ 20 billion in PE investments, fuelled predominantly by the growing demand for ITcentric spaces within these urban centres. Hyderabad’s share in Private Equity investments stood at US$ 4.836 billion, solidifying its position as a prime investment destination.