India’s property market takes the record another notch up. A Bengaluru luxury real estate firm has purchased a 11-acre plot in Hyderabad’s Knowledge City in Raidurg for ₹1,556.5 crore or €150.5 million. The auction organized by Telangana State Industrial Infrastructure Corporation (TSIIC) was a public auction. The price at which the land has been valued translates to ₹141.5 crore per acre or €13.7 million per acre, which is one of the highest ever for an urban piece of land in India.
Another 7.67-acre plot fetched a record price of ₹177 crore (around ₹1,358 crore) at the auction. Direct bids for the two sales earned around ₹2,914.5 crore (€283 million). The registration fees and duties from this auction will likely total ₹3,135 crore (€304 million), making it the largest single land auction in Hyderabad history by revenue, with a high profit margin.
Strategic Location and Market Impact
The newly bought Prestige plot is located at Knowledge City, which adjoins HITEC City and Gachibowli – Hyderabad’s top IT and financial districts.
According to the TSIIC, they are meant for multipurpose development and Prestige can develop high-end office, hospitality, retail or mixed-use projects. Intense bidding indicates Hyderabad’s western corridor has limited large land for development, with rising interest from institutional investors.
According to K. L. The record price of ₹177 crore per acre demonstrates that investors remain confident on Hyderabad’s long term potential, said L. Prasanna Kumar, a senior official at NAREDCO India. K. According to Shashanka, who is the Vice Chairman and Managing Director of TSIIC, it is a proof of the investor confidence and economic strength of Hyderabad.
Officials have claimed that the results of the auction reflect the growing confidence of investors. Despite rising costs of funding and global economic challenges, five developers fought for an 11-acre land bought by Prestige. And 12 bidders for a 7.67-acre land.
Record-Breaking Auction Momentum
This new sale surpasses Hyderabad’s previous record for the sale of land, which took place in 2023 at Neopolis, Kokapet, at ₹100.75 crore per acre (€9.8 million). Prices in the prime submarkets last two years increased by more than 70 per cent. Hyderabad’s rapid growth has made it one of the most vibrant real estate markets in India.
As per market experts, land rates in the western corridor of Hyderabad are almost at par with Bengaluru’s Outer Ring Road and Mumbai’s Bandra Kurla complex, showing the intent of developers to focus on valuable urban centers.
According to official sources, it further proves the credibility of Telangana as a governance and investor-friendly state, which is also being helped by projects such as metro extension and new arterial road.
Prestige Group’s Expansion Strategy
Prestige Estates Projects Ltd, part of the Prestige Group conglomerate which is listed on the Nse, is continuing to expand in the largest cities in India. The business got orders worth ₹18,144 crore (around €1.76 billion) in the first half of FY 2026 due to strong residential and office demand in Bengaluru, Mumbai and Hyderabad.
Prestige has not spoken of its intention here yet. According to analysts, this could either be a Grade A office campus or an integrated mixed-use complex containing premium offices, layouts, retail. Multinational occupiers expanding into southern India will find the site, located close to the Hyderabad Metro and Outer Ring Road, attractive.
Prestige is acquiring companies to create large urban land banks and this fits with its overall strategy. The company has healthy finances and a diversified multi-business portfolio enabling it to undertake large phased developments with long-term yield potential.
Market Performance and Outlook
In the calendar year 2024, Hyderabad saw an office absorption of nearly 12.3-12.5 million sq feet. According to experts, there’s been a year-on-year increase of almost 20 per cent. The city’s vacancy rate was between 17.5–24.2 per cent on submarket basis. Meanwhile, the major tech clusters, including Madhapur and Raidurg, reported a figure under 10 percent. By early 2025, business parks of the Grade A+ category had less than five per cent vacancy.
The latest project by Prestige is expected to generate momentum for a large-scale institutional-grade project for the residential market of Hyderabad. This project will help in the rental growth along with job creation and continuous capital inflow to the corridor.
The Bottom Line
The €150 million Raidurg deal by Prestige Group is more than a record-breaking deal. The Hyderabad real estate market is expected to be a global competitor thanks to transparency and credible civic agencies. Hyderabad has become one of the most resilient, investment-friendly and well-located property markets in India. This deal’s price is extraordinary with every acre fetching a good amount.
