Prestige Group's Record Land Deal in Hyderabad's Knowledge City

Prestige Group has pulled off one of the biggest land transactions in South India's real estate history. On October 6, 2025, Prestige Group won a high-stakes auction held by the Telangana Government, obtaining 11 acres in Raidurg, part of Hyderabad's Knowledge City, at a price that touched ₹141.5 crore per acre, making it the most expensive land transaction in the city's history. In absolute terms, that works out to 11 acres (53,243.50 sq. yards) acquired by the Prestige Group, headquartered in Bengaluru, for ₹141.50 crore per acre, amounting to ₹1,556.50 crore.

The Prestige plot was one of two prime parcels sold that day. In a landmark auction held on Monday, 6 October, one acre of land in Raidurg's Knowledge City fetched a record-breaking ₹177 crore per acre, the highest ever in Telangana's history, in an auction conducted by the Telangana State Industrial Infrastructure Corporation (TSIIC) involving two prime plots in the heart of Raidurg. The adjoining 7.67-acre parcel was won by Hyderabad-based MSN Realty at ₹177 crore per acre, totalling ₹1,357.59 crore, with twelve bidders competing fiercely and pushing the price 75 percent above the reserve price of ₹101 crore per acre set by HMDA. Between the two plots, the Telangana State Industrial Infrastructure Corporation (TSIIC) conducted the auction, which fetched a record ₹3,135 crore from just 2 high-value land parcels. For Prestige's plot specifically, five bidders took part, driving the price well above expectations.

Location is everything, and this site has it in spades. This location, adjacent to HITEC City and Gachibowli, is witnessing sharp rental growth and minimal vacancy rates. The plots also come with unusually flexible planning permissions — under the Knowledge City layout, they are multi-zone plots, allowing flexible development for commercial, residential, retail, hospitality, healthcare, and entertainment projects, with no additional permissions needed. That flexibility is significant: it means Prestige could eventually build offices, a mixed-use hub, or residences on the site without fresh zoning clearances.

The scale of the numbers has drawn national attention. The prices achieved have even surpassed those in Mumbai and Delhi. Real estate analysts point to a mix of structural factors behind the surge. Real estate experts attributed the price on account of buoyancy in the market, the charm Hyderabad holds for investments because of its strategic location in the country, less seismic vulnerability, pleasant weather and no possibility of cyclones as it is quite far away from the sea coast.

For Prestige, the acquisition fits into a much larger commercial ambition. Prestige Office Ventures, the office development arm of Prestige Group, plans to expand its office portfolio to 30 million sq ft by April 2028, with over 17 million sq ft under construction across Mumbai, Bengaluru, Hyderabad, and Chennai, targeting an annual rental income of ₹3,200 crore by December 2028. The deal was executed through the group's project entity, with the Telangana State Industrial Infrastructure Corporation (TGIIC) organising the auction, with JLL acting as the advisor.

The timing lines up with a strong run for Prestige's core business. In the quarter the deal was struck, the company reported revenue of Rs 26.98 billion, an increase of 11.3 per cent year-on-year, EBITDA rose sharply to Rs 11.76 billion, up 56.64 per cent, and profit after tax grew by 95.14 per cent to Rs 4.58 billion. Chairman and Managing Director Irfan Razack said, "We are pleased with our steady performance this quarter. The first half of FY26 has been particularly encouraging, backed by robust sales momentum and healthy cash flows," adding that the company's focus remains on timely project delivery, disciplined capital allocation, and expanding its footprint in key growth markets.

What does this mean for the everyday homebuyer? Land at ₹141.5 crore an acre doesn't translate directly into apartment pricing, but it is a strong signal of where Hyderabad's western corridor is headed. Prestige Group's acquisition is positioned amid Hyderabad's transformation into a global hub for tech and services, drawing increasing interest from top-tier multinational corporations and Global Capability Centres (GCCs). More GCCs and office towers around Knowledge City typically mean more high-paying jobs, denser rental demand, and faster capital appreciation for residential projects in Gachibowli, Raidurg, and the wider Financial District belt — the exact corridor where Prestige already runs projects such as Prestige Vaishnaoi Rainbow Waters and is reportedly planning further residential development.