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Hyderabad- An emerging real estate giant |
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Currently, Hyderabad is ranked the sixth largest urban agglomeration (HUA) in the country. The population of HUA increased from 4.3 million in 1991 to 5.7 million in 2001. |
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The city has the highest literacy rate in the state. The literacy rate has increased from 71% in 1991 to 79% in 2001. |
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Most of the population growth is occurring in the suburban areas which is a clear indication towards increasing housing demand. |
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The employment opportunities, educational facilities, hospitals, industries and business opportunities in the city have resulted in continuous immigration into the city. |
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Supportive policy environment, availability of cheap and talented technical manpower and competitive real estate costs have given a impetus to the growth of the IT industry in the state. Much of the growth is around Hyderabad, which is now looked at as “the preferred IT destination”. |
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While the IT/ITES sector continuous to play a major role, the NRI investments, investor friendly FDI norms, enhanced spending power and availability of loans are further fueling a healthy growth of the real estate sector. |
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Infrastructure development initiatives of the state government have also acted as prime drivers for the real estate investments into the city. |
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Commercial Growth Vectors : |
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Traditional hub - Old CBD (Central Hyderabad) |
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Current growth vector (IT driven growth) - Cyberabad |
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Residential Growth Vectors : |
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Organic growth vectors -Old City, Jubilee Hills, Ameerpet, LB Nagar, Sainikpuri, Medchal |
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Commercial driven growth -Madhapur, Kondapur, Kukatpally, Chevella, Vikarabad Road |
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Future growth vectors -Shamshabad, areas along Warangal and Vijaywada Highway, Shamirpet, Chevella, Vikarabad Road |
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| Sector |
Existing Hubs |
Sector Dyanamics |
| Residential |
Prime : Jubilee Hills, Banjara Hills, Maredpally etc.
Secondary: Kukatpally, DilshukNagar etc.
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Cyberabad(Madhapur, Kondapur)Nizamabad Road and Shamshabad ~ The new residential hubs.
Buoyant grouth in capital values.
Significant growth in apatmentActivity.
Resurgence of integrated townships. |
| Commercial |
Old CBD : Abids, Nampally
NewCBD:Panjagutta, Somajiguda, Begumpet, Banjarahills
Suburban : Hitec City & Cyberabad |
Significant Quantam of Grade A supply
High growth in absorption trends
Development of campuses by IT companies |
| Retail |
New CBD area : Pajagutta, Ameerpet, Somajiguda, SP Road
Old CBD :Abids |
Currently dominated by high street retail.
Limited presence of organised mall formats
Addition of approx. 2 million sft organised retail space(malls) by the end of 2006. |
| Hospitality |
New CBD : Banjarahills, Ameerpet, Begumpet, Somajiguda |
Madhapur/Cyberabad~ emerging hub
Approx.15-20 new hotels to be addesd by 2008.
Buoyant performance over last 2-3 years
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| The central areas of the city like Banjara Hills, Jubilee Hills, and Panjagutta are over burdened due to the increasing population, limited infrastructure, utilities & pollution, leaving little scope for expansion. |
| Hence suburbs are mushrooming: |
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Northern Suburbs include Medchal, Shamirpet, and Kompally. The activity here is in the form of layout development & a combination of independent houses & apartments. |
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Eastern Suburbs include Uppal, Habsiguda, Nacahram, Pocharam, etc. It is well connected by road and rail. This has emerged as a higher-education hub with many engineering colleges & other institutes. Development is not as prominent as the western and northern suburbs. |
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Southern Suburbs has been attracting a lot of attention because of proposed developments such as Hardware Park, Fab city, Apparel Park, Infosys, ring roads and link roads. |
| Western Suburbs is the fastest growing suburb of the city with the growth triggered by the Hi-Tech city in Madhapur. Gachibowli, Vikarabad Road, Chevella is witnessing development in the form of SEZ’s IT parks and campuses, while focus on residential townships is in Kukatpally. |
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In 2005-06 IT exports from Andhra Pradesh registered a growth rate of 65 % over the previous year surpassing the target of 40%. |
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IT Space Demand |
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According to report by JLL on real estate investment opportunities (May 2006), Hyderabad is one of the 3 Tier II cities with maximum potential & returns from an investor perspective. |
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The number of employees is growing at an average rate of 15 –20 % every year with around 50,000 employees getting added in the IT/ITES sector in Hyderabad. The sector is growing at an average growth rate of 45 % and the average export value per person is calculated at INR 11, 00,000. |
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On a conservative note of 60 sq. ft per employee, the space demand exists at 3 million sq. ft. If we assume an 1.5 per FTEs. The demand stands at 2 million sq. ft |
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On an optimistic note of of 100 sq. ft per person, the space requirement is estimated at 3.35 million sq. ft |
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SP Road, Begumpet Banjara Hills |
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Emerged as new CBD with high activity level in last decade |
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Propelled by the IT Boom |
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Transformation from residential to commercial usage |
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Market earlier characterized by predominantly ‘Grade B’ projects ~ transformation to Grade ‘A’ specifications over last 1-2 years |
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Cyberabad – Hi tech City, Madhapur, Gachibowli |
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Demarcated area for IT and related industries |
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State Government initiative - ‘HITEC City’ located here |
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High development activity over the last 5-6 years |
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Campuses of large IT Companies & multi tenanted ‘Grade A’ projects |
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Shifting trend towards ‘built to suit’ facilities |
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Other hubs - Abids, Liberty X Roads, Besheerbagh, SD Road
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Old CBD and surrounding areas |
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Inadequate space options and poor facility profile |
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Real estate activity witnessing a revival |
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| S.No |
Mall Name |
Location |
Developer |
Built up area |
status |
1 |
AdityaTrade Centre |
Ameer Pet |
Manjeera Estates |
40,00 |
operational |
2 |
Asoka Mall |
Banjara Hills |
Ashoka Builders |
1,50,00 |
end-2005 |
3 |
Atria Mall |
Abids |
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1,15,000 |
Project phase |
4 |
Babu Khan Mall |
Somajiguda |
BabuKhan Properties |
1,75,000 |
operational |
5 |
City Centre |
BanjaraHills |
Skill Promoters |
2,00,000 |
end-2005 |
6 |
G S 24 Carat |
Ameer pet |
G.S.Realtors |
1,75,000 |
project Phase |
7 |
GVK One |
Banjara Hills |
G.V.K Group |
3,00,000 |
Site Development |
8 |
Hyderabad Central |
Panjagutta |
PantallonsRetailLimited |
2,50,000 |
Operational |
9 |
Mahavir Mall |
RajBhaven Road |
Mahaveer Constructions |
1,00,000 |
2007 |
10 |
MPM Mall |
Banjara Hills |
Maheswari Builders |
NA |
SiteDevelopment |
11 |
MPM Mall |
Abids,Hyderabad |
MaheswariMega Venture |
1,50,000 |
Operational |
12 |
MPM Mall |
Himayath Nagar |
MaheswariMega Venture |
1,80,000 |
Feb-06 |
13 |
N.A |
Cyberabad |
K Raheja Corp Group |
5,92,000 |
2007 |
14 |
Prasad Labs |
Necklace Road |
Prasad Media |
1,00,000 |
Operational |
15 |
Sanali Mall |
Abids |
Remax Constructions |
80,000 |
Operational |
16 |
Sigma Mall |
Secunderabad |
IDBC Inc |
1,00,000 |
Jan 6 |
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2,707,000 |
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Currently Hyderabad has 8 operational malls with a total retail area of 1.3 m sq ft. The supply is projected to go up to 16 malls with total area of 2.7 m sq ft in 2007.
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Rising Population : |
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Huge influx of people from other parts of the country driven by employment opportunities. The population is expected to cross 9 m by 2011 and 13.64 m by 2021. |
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Economic growth driven by IT/ITES sector. |
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The performance of the software export industry in the State has shown a significant growth of 64.5% in the year 2004 - 2005 touching INR 8,270 Crs (USD 1.88 bn)* |
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Huge investments by NRIs : |
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A large number of NRIs who possess ancestral links with the city are also investing to have continued base in the city, thereby driving demand for premium residential space. |
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Proposed International Airport at Shamshabad across 5000 acres. Expected completion time 2008. |
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Knowledge Corridor: proposed to be 80 sq.km & 20,000 acres of land out of which some portion will be a SEZ for IT/ITES sector. |
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Multi-Modal Transportation System: Suburban train network with connectivity across Hyderabad. |
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Easy entry permits fro International Developers
The state Government has simplified regulatory procedures which has lad to a a large number of foreign developers to bring investments to real estate sector & add impetus |
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