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Hyderabad is the biggest PG market on My PG Manager: 1,375 active tenants in 54 Hyderabad PGs are managed on it, more than Bengaluru and Chennai combined. Demand comes from the IT corridor in the west, coaching centres in the centre and colleges across the city. Rents are lower than Bengaluru's, so the business works on full beds and controlled costs. This guide covers what tenants pay, the licences and the 2026 safety rules, costs, and where demand is.
What PG tenants pay in Hyderabad
From the rent that tenants in Hyderabad PGs on My PG Manager actually pay (October 2026):
| Room | Median rent per bed |
|---|---|
| All PGs (median) | ₹6,500 |
| Middle 50% of tenants | ₹6,000 – ₹7,500 |
| Double sharing | ₹9,000 |
| Triple sharing | ₹7,500 |
| Four or more sharing | ₹6,500 |
| AC room | ₹9,000 |
| Non-AC room | ₹6,500 |
| Boys' PGs | ₹6,500 |
| Girls' PGs | ₹6,000 |
| Co-living / co-ed | ₹8,500 |
Three things stand out:
- A tight band. Half of all tenants pay between ₹6,000 and ₹7,500. Pricing far above the market needs a clear reason: AC, a double room or a walk to the office.
- Most beds are shared by four or more. 58% of tenants in our data are in rooms of four or more, so most of your income comes from the cheapest beds.
- Food is expected. Three in four Hyderabad PGs on the app (66 of 88) include meals. A PG without food competes on price alone.
The latest figures are on PG rent in Hyderabad, and the PG Rent Index compares other cities.
Licences and rules in Hyderabad
GHMC trade licence
A PG is a commercial establishment. In July 2026 the GHMC Commissioner said hostel operations must hold a valid municipal trade licence, and that establishments without statutory approvals would be treated as unauthorised. Apply through GHMC's online services or your circle office, in the PG's name and address. Areas outside GHMC limits apply to their own municipality.
Police registration for women's hostels and PGs (2026)
In July 2026 Hyderabad City Police audited 447 women's hostels. 97.5% had CCTV, but only 43% had a proper compound wall and 38.9% had fire safety equipment. The police then made it compulsory for every women's hostel and PG in the Hyderabad Commissionerate to register at the local police station using Form-A, with these minimum standards:
- CCTV in common areas, working at all times.
- A complete register of residents.
- Background verification of housekeeping, kitchen and support staff.
- Fire safety: a second staircase, 2-kg extinguishers on every floor and in every room, and a hose reel connected to the rooftop tank.
- Kitchen hygiene with regular pest control; violators face food sampling, cases and penalties.
The order covers the Hyderabad Commissionerate. Much of the IT corridor (Madhapur, Gachibowli, Kondapur) falls under Cyberabad police, and the east under Rachakonda. Ask your local police station what applies. Following the same standards in a boys' or co-ed PG costs little and protects you in any dispute.
FSSAI for food
GHMC and the police both said PGs that serve food need FSSAI approval. Since April 2026 basic registration covers food turnover up to ₹1.5 crore, so almost every PG needs only the ₹100-a-year registration. See FSSAI registration for PGs.
Agreements and residents
- Telangana stamp duty on a rent agreement is 0.4% of the total rent; registration is optional under one year. See our stamp duty guide.
- Keep every resident's ID and address proof, and verify where your station asks for it. Our police verification form has the state rules.
Setting up: the Hyderabad checklist
- Lease in writing with PG use allowed, and check the building's permitted use and the society's rules.
- Fire safety: extinguishers on every floor, a clear second way out, safe wiring. Taller buildings need a fire NOC.
- Trade licence from GHMC or your municipality.
- FSSAI registration if you serve food.
- Police: Form-A registration for a women's PG in the Hyderabad Commissionerate; a visit to the station everywhere else.
- CCTV, register and staff verification before the first resident moves in.
- Agreements for every resident, stamped at 0.4%, with your house rules attached.
Costs to plan for in Hyderabad
- Lease rent in the western IT corridor is the biggest cost and the tightest margin, because PG rents there are only a little higher than elsewhere in the city.
- Food: with meals expected, groceries, gas and a cook are a fixed monthly cost. Track the cost per resident so the food part of your rent covers it.
- Electricity in summer, when AC and coolers run all day. Many PGs bill AC rooms by sub-meter; see electricity bills per room.
- Water tankers in summer in areas that depend on borewells.
- Safety upgrades: extinguishers in every room, CCTV and a hose reel if you are not compliant yet.
Put your real quotes into the PG profit calculator, and read is a PG business profitable? for how occupancy changes the answer.
Where demand is
Demand follows offices, coaching centres and colleges:
- IT corridor (west): HITEC City, Madhapur, Kondapur, Gachibowli, Nanakramguda and the Financial District, Manikonda. Madhapur has the most PGs on My PG Manager in Hyderabad. Professionals here pay more for double rooms, AC and co-living.
- North-west: Kukatpally, KPHB, Miyapur and Chanda Nagar, for cheaper beds on the metro line to the IT corridor.
- Coaching hubs: Ameerpet, Ashok Nagar and Dilsukhnagar, for students preparing for exams. Budgets are lower and stays are tied to course dates.
- College areas on the city's edges, such as Medchal, for students who want low-cost shared rooms with food.
Before choosing a building, check the commute to the nearest large employer or institute, the number of PGs already in the lane and their prices, and whether your residents want AC, food or private rooms. For filling a new PG, see how to fill vacant beds.
Running it well
- Collect rent without chasing, with automatic WhatsApp reminders and receipts.
- Keep inspection-ready records: trade licence, FSSAI, fire clearance, CCTV, the residents' register, IDs and agreements in one place.
- Publish the food menu and fix complaints fast. In a market where prices are close, reviews decide bookings.
My PG Manager keeps rooms, residents, verified IDs, rent, expenses and the weekly food menu together, so an inspection or month-end takes minutes. It costs ₹159 a month after a 14-day free trial.
Frequently asked questions
Is a PG business profitable in Hyderabad?
It can be. Demand is the largest of any city on My PG Manager, but rents are in a tight ₹6,000–₹7,500 band, so profit depends on keeping beds full and food and lease costs under control.
Do I need a licence to run a PG in Hyderabad?
Yes, a trade licence from GHMC or your municipality, plus FSSAI registration if you serve food. Women's hostels and PGs in the Hyderabad Commissionerate must also register with the local police station using Form-A.
How much is PG rent in Hyderabad?
In our data the median is ₹6,500 a month, with half of tenants paying between ₹6,000 and ₹7,500. Double sharing is about ₹9,000 and AC rooms about ₹9,000.
What are the police rules for women's hostels in Hyderabad?
Register at the local police station with Form-A, keep CCTV in common areas working, keep a full residents' register, verify staff, and meet fire rules: a second staircase, extinguishers on every floor and room, and a hose reel.
Sources
- Hyderabad police survey of 447 women's hostels, Form-A registration and GHMC trade licence (July 2026) — NewsMeter, Siasat.
- Telangana stamp duty — registration.telangana.gov.in.
- Rents: active tenants in Hyderabad PGs on My PG Manager, October 2026.
Last reviewed: October 2026. General information, not legal advice. Confirm current conditions with GHMC and your local police station.
We build My PG Manager, the app PG and hostel owners use for rooms, tenants, rent collection and WhatsApp reminders. Our guides come from running it with owners across India.
