Like many Indian cities, Hyderabad has witnessed a remarkable growth in the real estate business, thanks to a predominantly information technology-driven boom in the 1990s and the retail industry growth over the last few years which have spurred hectic commercial activity. A number of mega malls have come up or are being built in the city.

The contours of Hyderabad are in for a drastic change. The merger of 12 surrounding municipalities have resulted in the urban agglomeration area increasing from 172 sq. km to 725 sq. km.

The municipalities included are L.B. Nagar, Gaddiannaram, Uppal Kalan, Kapra, Alwal, Qutubullapur, Malkajgiri, Kukatpally, Serlingampally, Rajendranagar, Patancheru and Ramachandrapuram.

Greater Hyderabad is considered necessary to facilitate improved civic services and relieve the stress on existing infrastructure.

The constitution of Greater Hyderabad is intended to ensure better planning and focused development of the mega city, make it internationally competitive with world-class infrastructure and services. The population has registered an increase of about 216 per cent in the last three decades - jumping from 18 lakhs in 1971 to about 57 lakhs in 2001. The population of Hyderabad urban agglomeration is expected to touch 136 lakhs by 2021 with the overall average density of about 200 persons per hectare.

A New Expressway called Hyderabad Outer Ring Road of about 160 km is being built now and will be done in about 4 - 5 years.

Development of specialised IT infrastructure by private players gained over the last two years after the Government kicked off the Hitec City

Main article: Information Technology industry in Hyderabad, Andhra Pradesh

Hyderabad city is today known for its IT and IT Enabled Services, Pharmaceuticalsand Entertainment industries. Many call centers, Business process outsourcing(BPO) firms, dealing with IT and other technological services were set up in the 1990s making it one of the major regions for call center setups in India. Ramoji Film City, the largest film studio in the world is located on the outskirts of the city.

The development of a township with state-of-the-art facilities called HITEC City, prompted several IT and ITES companies like Inforlinx to setup operations in the city. An aggressive promotion of growth in this area has led civic boosters to call the city "Cyberabad". Hyderabad has also been referred to as the second Silicon Valley of India next to Bangalore. IT exports from the city are expected to exceed Rs 12,500 crores ($ 2.5 billion) in the 2005-06 fiscal year. There have been extensive investments in digital infrastructure within the city promoting the setting up of several campuses by a vast array of companies within the city. This list includes several multinational corporations having established centres in the city. The major areas where such campuses have been setup include Madhapur and Gachibowli.

Hyderabad has been the front runner in terms of attracting huge investments from Fortune 500 Companies. Hyderabad is poised to become a global city after the city has clinched Semiconductor Fab deals from Intellect Inc, Semindia. Hyderabad has been selected as the location for India's first Fab City, a silicon chip manufacturing facility, being setup with an investment of $3 billion by the AMD-SemIndia

AIRPORTS

Hyderabad iwas well connected to all parts of the country and world by air. Hyderabad city has had an airport since the 1930s at Begumpet. This airport provided two terminals, for domestic and international travels. The airport provided flights to all major destinations in India, as well as connections to locations in Middle East, Southeast Asia, Europe, the Americas and Sri Lanka with non stop flights to and from many cities in these areas. As the demand for air travel has grown in recent years, like most major airports in the country, the Begumpet airport now suffered  from overcrowding, this had led to major problems, especially in the domestic terminal, and conditions are cramped, unattractive, and sometimes unsanitary.

To meet the growing demands of the city a project to build a much bigger and state-of-art Airport was underway at Shamshabad, which lies on the outskirts of the city which has been completed. The new airport, is able to provide much needed infrastructure to handle large aircraft, and international traffic. The airport is one of the best in this region and will house world-class facilities .The airport is built on an area of 5,400 acres and has the longest runway among Indian airports and is able to handle the world’s largest passenger aircraft, the Airbus A380. The work on the flyover linking Mehdipatnam to the Shamshabad Airport has started, and it is expected to be one of the biggest projects undertaken by GreaterHyderabad metropolitian Development Authority, also known as GHMDA.

RAILS

Hyderabad has a light rail transportation system known as the MultiModal Transport System (MMTS)

The MMTS Necklace Road Metro Station(MMTS Photo feature). The MMTS connects various parts of the city with Hyderabad, Secunderabad, Lingampally and Falaknuma. Hyderabad is currently scheduled to get a Metro system to help ease urban congestion. Nationally, too, Hyderabad and especially Secunderabad are considered as among the important railway cities. The South Central Railway headquarters are located at Secunderabad.

• Secunderabad Railway Station (Which recently got ISO 9002 Certification)
  Hyderabad Railway Station (Nampally)
  Kachiguda Railway Station. A lot of development has come up at the Kachiguda Railway Station, like an extension of the platform. It is now the starting point of many trains like Kachiguda-Bangalore, Kachiguda-Tirupathi etc., to divert the traffic flow from Secunderabad.
  

Hyderabad is well connected to many other locations in India, such as Bangalore, Mumbai, Kurnool, Guntur, Nagpur, Warangal, Pune, and Vijaywada, either through directly or through intermediary locations. The highway (express way) network linking Hyderabad to various parts of the country is very good. Indian National Highways, NH-7, NH-9 and NH-202 pass through the city. The city shall also be part of the North-South Corridor

In a stunning coup, Hyderabad beat IT heavyweight Bangalore to bag the Fab City project, which will host India’s first major silicon chip manufacturing facility. The project will see a veritable watershed of foreign investment in Shamshabad, with $3 billion to be brought in by the anchor company SemIndia in collaboration with the international chip major AMD, and more by other chip manufacturers. Just SemIndia is likely to create 5,000jobs directly and thousands more indirectly through the influx about 200 suppliers and ancillaries.

"We have decided to position Fab City in Hyderabad." That announcement by SemIndia president and CEO Vinod K Agarwal rippled through a press conference like a streak of lightning at chief minister Y S Rajasekhara Reddy's camp office .

Fab City is to be located on 1,200 acres of land to be given by the AP government in Maheshwaram mandal near Shamshabad.. The project is to be executed in two phases, the first involving investment of $ 1 billion and the second $ 2 billion. There will be two projects in the first phase. The first project, which will begin right after the groundbreaking ceremony, will involve the setting up of assembly and testing facilities in which about 5,000 people will be employed.