In this blog we will discuss about the Growth of Hyderabad Real Estate Market, As of recent survey from The Oxford Economics Institution recently studied 780 cities across the globe and found that the top 10 wealthiest cities by 2035 based on annual gross domestic product (GDP) growth would not be New York, Tokyo or London but 10 metros from India.
Source: Oxford Economics
Hyderabad would be the fourth wealthiest in growth terms, behind Surat, Agra and Bengaluru. The current GDP of Hyderabad stands at $50 billion and estimates show that it is likely to increase to $201.4 billion by 2035.
The Oxford Economic Institution study was based on parameters like GDP growth year on year. Population research showed that all top 10 fastest-growing cities by GDP between 2019 and 2035 would be in India, towering over other ultra-urban economies.
In the light of this survey, we wanted to throw some light on how this diversified city has transformed itself from a historical and cultural hub into a thriving economic powerhouse – Hyderabad. Read till the end to understand the journey of this “would be” richest city in the world and what parameters contributed to reach the current position.
With its rich history, diverse culture, and a strategic approach to development, Hyderabad has emerged as one of India’s most dynamic and fastest-growing cities. Let’s delve into the remarkable journey that has propelled Hyderabad to its current status as an economic powerhouse.
The Historical Foundation
Hyderabad’s journey towards economic prominence is rooted in its historical significance. Established in the late 16th century, Hyderabad was the capital of the Qutb Shahi dynasty and later the Nizams of Hyderabad. The city’s strategic location along trade routes contributed to its growth and prosperity. This historical foundation laid the groundwork for future economic endeavors.
Information Technology and Business Process Outsourcing
The turning point in Hyderabad’s economic trajectory came in the 1990s when India began to embrace economic liberalization and globalization. Hyderabad quickly positioned itself as a major player in the Information Technology (IT) and Business Process Outsourcing (BPO) sectors. The establishment of HITEC City (Hyderabad Information Technology and Engineering Consultancy City) in 1998 marked a significant milestone. This dedicated IT and business district attracted a multitude of tech companies, both domestic and international, creating a vibrant ecosystem of innovation and entrepreneurship.
Education and Human Capital
Hyderabad’s transformation into an economic powerhouse was further fueled by its emphasis on education and human capital. The city boasts prestigious institutions like the Indian School of Business (ISB) and the International Institute of Information Technology (IIIT), which have contributed to a highly skilled workforce. The presence of these institutions has attracted students and professionals from across the country and the world, creating a diverse and talented talent pool that continues to drive economic growth.
Wikimedia: Indian School of Business
Pharma and Biotechnology Hub
Another sector that has significantly contributed to Hyderabad’s economic rise is pharmaceuticals and biotechnology. The city has earned the moniker of “Genome Valley” due to its concentration of biotech companies, research institutes, and pharmaceutical giants. The availability of skilled researchers, a supportive regulatory environment, and robust infrastructure have made Hyderabad a preferred destination for pharmaceutical research, manufacturing, and exports.
Credits: Lifescience Telangana
Hyderabad’s infrastructure development has played a pivotal role in its economic ascent. The city’s modern and well-connected transportation network, including its international airport, extensive roadways, and upcoming metro system, has facilitated the movement of goods and people. Additionally, the government’s focus on urban planning has led to the development of business-friendly zones and industrial parks, further attracting investment.
Government Initiatives and Policies
Government initiatives and policies have been instrumental in shaping Hyderabad’s economic landscape. The establishment of the Telangana state in 2014 provided renewed focus and autonomy to Hyderabad’s development efforts. Proactive policies, ease of doing business reforms, and incentives for industries have all contributed to making the city an attractive destination for investment.
Diversification of Industries
Hyderabad’s journey to economic prominence has been characterized by its ability to diversify across industries. While IT and pharma have been cornerstones, the city has also seen growth in sectors like real estate, hospitality, retail, and more. This diversification has not only added to the city’s economic resilience but also created a balanced ecosystem for sustained growth.
Hyderabad’s transformation from a historical city to an economic powerhouse is a testament to its adaptability, strategic planning, and commitment to progress. The synergy between historical significance, educational institutions, government policies, and diverse industries has propelled the city onto the global economic stage. As Hyderabad continues to evolve, its journey serves as an inspiration to other cities aspiring to harness their potential for economic growth and development.