Why Hyderabad is the Go To City for Biotech and Pharma Expansion

Hyderabad has emerged as India’s leading biotechnology and pharmaceutical hub, attracting billions in investments from both global and domestic companies. The city is witnessing rapid growth in office spaces, research and development (R&D) facilities, and industrial zones. This expansion is driven by robust infrastructure, government support, and a vibrant ecosystem of research institutions and skilled professionals.

According to the Hindustan Times, Hyderabad's office space inventory has increased more than threefold since 2014, reaching approximately 137 million square feet by December 2024. This figure is expected to surpass 200 million square feet by 2030. The growing demand for office space is fueled by the establishment of Global Capability Centers (GCCs), pharmaceutical research and development hubs, contract research organizations (CROs), and biotech startups in the city.

Additionally, the growth in office space is supported by significant life sciences parks, including Genome Valley, Hyderabad Pharma City, and the Telangana government's flagship Green Pharma City Initiative. This initiative aims to position the city as a global leader in pharmaceutical manufacturing and innovation.

1. Government-Led Infrastructure & Policy Support

The Telangana government has been proactive in positioning Hyderabad as a global life sciences hub by launching large-scale projects such as the following:

• Green Pharma City – A 19,000-acre, world-class industrial township dedicated to the pharmaceutical and biotech industries.

• Genome Valley Expansion – India’s first life sciences research and manufacturing cluster, already home to over 200 companies, including major global players.

• Life Sciences Growth Strategy 2020-2030 – Aiming to triple the size of the life sciences industry to $100 billion and create 400,000 new jobs by 2030.

2. Large-Scale Global Investments

Hyderabad has attracted massive investments from global pharmaceutical and biotech firms:

• Over ₹5,445 crore (approximately $740 million) has been committed for research and development (R&D) and manufacturing at BioAsia 2025.

• Growth of top contract research and manufacturing companies, enhancing the city’s status as the Contract Development and Manufacturing Organization (CDMO) capital of India.

• Investment by leading global pharmaceutical companies in technology centers, AI-driven drug development, and advanced manufacturing facilities.

3. Skilled Workforce & Research Ecosystem

Hyderabad boasts a large pool of highly skilled professionals and is home to prestigious research institutions such as the Indian Institute of Chemical Technology (IICT), the National Institute of Pharmaceutical Education and Research (NIPER), and the Centre for Cellular & Molecular Biology (CCMB). These institutions foster research and development collaborations and drive innovation in the biotech sector.

The massive influx of biotech and pharma firms has led to soaring demand for commercial spaces, including:

• Premium office spaces in IT and biotech hubs such as HITEC City, Financial District, and Genome Valley.

• Industrial spaces for biotech and pharma manufacturing in Hyderabad Pharma City and Genome Valley.

• Specialized R&D centers and innovation labs, fostering cutting-edge advancements in drug discovery and biotechnology.

Hyderabad is set to become a global leader in life sciences due to strong government support and ongoing infrastructure development. 

The next decade will bring significant advancements in AI-driven pharmaceutical research, biopharmaceutical manufacturing, and the expansion of Global Capability Centers (GCCs). This growth will enhance demand for office and industrial spaces, making the city an attractive destination for real estate investors in the biotech and pharmaceutical sectors.