Hyderabad: Hyderabad’s property market has rewritten the rulebook. Land auctions now command jaw-dropping prices of over ₹230 crore per acre, underscoring Telangana’s meteoric rise as one of India’s fastest-growing, real estate-driven economies in just a decade.Fresh data accessed by TOI reveals that the ‘Real estate, ownership of dellings and professional services’ segment contributed a massive 34% to Telangana’s tertiary sector GSVA (Gross State Value Added) between 2011-12 and 2023-24. That puts the state neck-and-neck with Maharashtra (35%), while Karnataka leads the pack at 50%.GSVA — the total value of goods and services produced in a state after subtracting input costs — is widely regarded as the clearest measure of economic performance and sectoral growth.At the national level, the real estate and professional services category has grown from 13% in 2011-12 to 17.6% in 2023-24. Telangana’s growth rate is nearly double the national average, highlighting the state’s unique trajectory.NITI Aayog’s takeAccording to NITI Aayog’s report ‘Service Sector Insights from GVA and State-Level Dynamics’, Telangana represents a ‘digitally oriented model’ anchored in Hyderabad’s IT and startup ecosystem.The surge in real estate and dwelling indicators is linked to: Rapid urban expansion, innovation corridors, and legal, architectural and consultancy clusters around tech hubs.Services-led prosperityStates with higher services sector shares, including Telangana, have also recorded stronger per capita incomes, thanks to concentrated activity in IT, finance, professional services, and real estate.The report notes that while India’s services-led growth is geographically uneven, Telangana has emerged as a major hub for modern, high-productivity services, powered by: Urban infrastructure, skilled workforce, digital connectivity, and commercial real estate investments.With Telangana’s real estate growth remaining heavily concentrated around Hyderabad, NITI Aayog recommended the creation of innovation hubs in tier-2 and tier-3 cities through dedicated digital zones and shared infrastructure focused on the pharmaceutical and IT sectors.The report said this would help nurture startups in fintech, health-tech and software-as-a-service, while broadening the state’s growth base beyond Hyderabad. It also called for strengthening technology-driven services through training in AI, robotics and cybersecurity in collaboration with educational institutes, and integrating these efforts with digital delivery systems in healthcare, governance and education.Additionally, NITI Aayog suggested expanding rural services and tourism networks by promoting telemedicine, agri-wellness and craft-based experiences linked to primary healthcare infrastructure, digital booking platforms and homestay facilities.
