Prestige Group has set a new record in Hyderabad’s commercial real estate market by acquiring an 11-acre plot in the high-demand Knowledge City area for Rs 1,556 crore. This deal, part of a Telangana Government auction, underscores Hyderabad’s growing stature as a global business hub and reflects robust investor confidence in its office space demand, especially in the HITEC City micro market.
Record-Breaking Land Acquisition
On October 6, 2025, during a Telangana State Industrial Infrastructure Corporation (TGIIC) auction, Prestige Group secured the 11-acre land parcel located in Raidurg, a strategic zone within Hyderabad’s Knowledge City. The acquisition, valued at Rs 141.5 crore per acre, is the highest for Hyderabad, highlighting an unparalleled price benchmark in the city’s commercial sector.
The area’s proximity to major hubs such as HITEC City and Gachibowli, combined with limited land availability, triggered fierce competition, with five bidders vying for the plot. This competition reflects the soaring demand for world-class office spaces in this rapidly developing technology and business corridor.
Hyderabad’s Rising Commercial Real Estate Market
Hyderabad has been emerging as a major destination for IT, financial services, and tech companies, driving unprecedented demand for premium office infrastructure. The micro market at HITEC City, in particular, has seen rental rates spike and vacancy rates drop to record lows. This context makes the land at Raidurg even more coveted by developers and investors seeking long-term growth opportunities.
Beyond Prestige Group’s purchase, the auction generated total proceeds exceeding Rs 3,135 crore for the Telangana Government, with another 7.67-acre parcel fetching Rs 1,358 crore. These results affirm Hyderabad’s transformation into one of India’s top commercial real estate destinations and validate government efforts to create a transparent, investor-friendly ecosystem.
The Flexinsights Take
This acquisition underscores the strategic foresight of Prestige Group in capitalising on Hyderabad’s escalating commercial real estate dynamics. The record-setting price demonstrates strong confidence in the city’s trajectory as a global business hub, particularly in Hyderabad’s Knowledge City micro market, which continues to attract IT giants and multinational corporations with its superior infrastructure and connectivity.
For investors and developers, Hyderabad’s commercial land valuations are signalling a new phase of premium office space developments, driven by solid demand outstripping supply. The Telangana Government’s successful land auctions will also bolster infrastructure funding, further reinforcing Hyderabad’s position as a preferred destination for commercial real estate investments.
