Page 02 NORTH-WEST HYDERABAD EMERGING MANUFACTURING HUB
Structure
MANUFACTURINGHUB
UPCOMINGINFRASTRUCTURE
REAL ESTATELANDSCAPE
INSIGHTS NORTH-WESTHYDERABADOVERVIEW
While Hyderabad had come to a standstill during the Telangana dispute, the issue is now resolved and the city’s real estate landscape is set for a revival.
With an existing ecosystem of Pharmaceutical companies and announcement of Hyderabad-Nagpur Industrial Corridor (HNIC) and Information Technology Investment Region (ITIR), the region promises economic growth on the backbone of manufacturing which, in turn, has already attracted developers in proximity of this influence zone.
End-users and investors are looking at North-West Hyderabad as an attractive opportunity as planned infrastructural initiatives such as the proposed Outer Ring Road (ORR) and Metro Rail among others are likely to improve region’s connectivity.
With ongoing metro construction, North-West Hyderabad realty is getting a fresh lease of life. Once operational, the connectivity to the Southern and Western parts would improve significantly.
Residential real estate prices in Hyderabad are the lowest across most other metro cities like Bengaluru and Chennai which makes the city one of the most affordable metropolitan centers as well.
With the North-West region closely following the industrial/manufacturing footsteps of Tumkur Road in Bengaluru, the region holds high price potential in medium to long term.
Kukatpally, Miyapur and Medchal are the key localities in North-West region that are likely to witness an upsurge in residential demand, owing to their connectivity with National Highway-7, proximity to IT/ITeS hubs and manufacturing corridors.
Key Insights
Page 03 NORTH-WEST HYDERABAD EMERGING MANUFACTURING HUB
North-West HyderabadOverview
Page 04 EMERGING MANUFACTURING HUB
Figure 1 – North-West Hyderabad Map
North-West Hyderabad
Patancheru
Tellapur
Chanda Nagar
Miyapur
Nizampet
Bachupalli
Medchal
Kompally
Bolarum
Alwal
Bowenpally
Balamrai
Kukatpally
Mo NagarSanath Nagar
Kondapur
Prominent pharmaceutical hub of India with large scale initiatives planned in manufacturing and information technology
While the existing Outer Ring Road connects the region to other micro markets, the NH-9 connecting Hyderabad and Pune passes through the region
North-Western region is a mixed zone cluster comprising of manufacturing and IT/ITeS
Corridor 1 of the upcoming Hyderabad Metro from Miyapur to LB Nagar likely to improve connectivity with other parts of the city
Upcoming organized retail cluster with presence of Grade A malls in localities such as Miyapur, Nizampet and Kukatpally
Proximity to IT/ITeS zones in Gachibowli and HiTech City and railway stations at HiTech City, Borabanda and Bharatnagar
Source : Proptiger DataLabs Research
Manufacturing HubEpicenter for Pharma
Page 05 NORTH-WEST HYDERABAD EMERGING MANUFACTURING HUB
S.No. Industrial Area Major Companies
Patancheru Industrial Area Fenner India, Praxair India
Janachaitanya Industrial Area, Miyapur
Coca Cola Factory, TFL Quinn India, L&T
ALEAP Industrial Area, Gajularamaram
Neuheit Pharma, Lyophilization Systems, TherDose
Kukatpally Industrial EstateIDL Factory, Usha International, MTAR
Technologies, Hindustan Aeronautics, BHEL
Kattedan Industrial Area Dukes, Hindustan Adhesives, Balaji Packagings
IDA JeedimatlaShree Vinayaka Life Sciences, Therdose Pharma,
Alphine Pharmaceutical, HMT
Balanagar Industrial Development Area
Indian Drugs and Pharmaceuticals Limited (IDPL), SEC Industries, Usha International, Khaitan, BHEL
R&D
3
5
4
1
2
6
3
6
1
4
2
5
7
7
Table 1 - List of Industrial Areas in North-West Hyderabad
Figure 2 - Industrial Areas of North-West Hyderabad
Source : Proptiger DataLabs Research
Manufacturing HubHyderabad-Nagpur Industrial Corridor (HNIC)
Page 06 EMERGING MANUFACTURING HUB
Source : Socio Economic Outlook 2015, Government of Telangana Planning Department
Table 2 - District-wise focus on Industries
District-wise focus on Industries
IndustriesDistrict
Medak Edible Oil Refining, Handloom Units, Handicrafts
Nalgonda Service and Cement Industry
Warangal Agro, Forest and Mineral Units
Karimnagar Food and Agro, Livestock, Leather, Textile and Paper Units
Adilabad Engineering and Small Service Establishments
Nizamabad Engineering and Electric units
Six Industrial corridors planned for development along the important national and state highways
Phase 1 - Hyderabad-Warangal Industrial Corridor, Hyderabad-Nagpur Industrial Corridor (HNIC) and Hyderabad-Bengaluru Industrial Corridor
Phase 2 - Hyderabad-Mancherial Industrial Corridor, Hyderabad-Nalgonda Industrial Corridor and Hyderabad-Khammam Industrial Corridor
HNIC - Covering 585 Kms. from Hyderabad to Nagpur, the dedicated freight corridor will include high-speed rail and an additional six-eight lanes to NH-44
HNIC Influence - 50 Kms. on either side of the corridor and would cover a total population of 2.7 Crore
Areas under influence - Hyderabad, Ranga Reddy, Medak, Nizamabad, Nalgon-da, Warangal, Karimnagar, Adilabad, Chandrapur, Wardha and Nagpur
Regions covered in this corridor would be developed with a specific industry
Industrial corridor will connect economies of Telangana with Maharashtra
50 Kms.50 Kms.
Kompally
AlwalKukatpally
HNIC InfluenceRegion
Hyderabad-Nagpur Industrial CorridorFigure 3 -
MedchalNagpur
Hyderabad-NagpurIndustrial Corridor
Wardha
Chandrapur
Adilabad
Nizamabad Karimnagar
Medak Warangal
HyderabadRanga Reddy
NalgondaLocali es in Hyderabad that
would be included in this corridor
Manufacturing HubITIR (Information Technology Investment Region)
Page 07 EMERGING MANUFACTURING HUB
Source : Proptiger DataLabs Research
ITIR
Approved jointly by Govt. of India and Govt. of Telangana in September 2013 to promote investment in IT/ITeS and electronic hardware sector, expected to be completed over a period of 25 years in 2 phases
As per the new proposal of Telangana Govt., ITIR will now be developed all along the ORR, where the government is already in the process of crea ng Transit Oriental Growth Corridors (TOGC).
The government lands would be iden fied in one kilometre range on both sides of the ORR and they would be marked for industrial purpose, so as to reduce the hassle of land conversion
Planned to include IT SEZs, IT parks, industrial parks, warehouses and export oriented zones and is expected to create direct employment of ~15 lakhs and indirect employment of ~50 lakhs
Promoted by the Central government’s financial assistance, where Centre will release Rs. 50 Crore for every 100 acre land in the ITIR and is expected to generate IT exports of Rs. 2.35 Lakh Crore.
Figure 4 – Upcoming ITIR
Tellapur
Chanda Nagar
Miyapur
Nizampet
Bachupalli
Medchal
Kompally
Bolarum
Alwal
Bowenpally
Balamrai
Kukatpally
Mo NagarSanath Nagar
Patancheru
1 KM
1 KM
Outer Ring Road
ITIR
Approved jointly by Govt. of India and Govt. of Telangana in Septem-ber 2013 to promote investment in IT/ITeS and electronic hardware sector, expected to be completed over a period of 25 years in 2 phases
To be developed along the ORR, where the government is already in the process of creating Transit Oriental Growth Corridors (TOGC)
Govt. land, within 1 Km. range of both sides of ORR, will be identified and marked for industrial purpose, so as to reduce the hassle of land conversion
Planned to include IT/ITeS SEZs, IT parks, industrial parks, warehouses and export oriented zones and is expected to create direct employment of ~15 lakhs and indirect employment of ~50 lakhs
Promoted by the Central government’s financial assistance, where Centre will release Rs. 50 Crore for every 100 acre land in the ITIR and is expected to generate IT/ITeS exports of Rs. 2.35 Lakh Crore.
Upcoming InfrastructureOuter Ring Road, Suburban Railways and Hyderabad Metro
Page 08 NORTH-WEST HYDERABAD EMERGING MANUFACTURING HUB
Outer Ring Road
Suburban Railways
Hyderabad Metro
Figure 5 - Upcoming Infrastructure
Shamirpet
Ghatkesar
Patancheru
Tellapur
Miyapur
Sanathnagar
Begumpet
Falaknuma
Medchal
Shamshabad
Bolarum
Sitaphal Mandi
Secunderabad
Shilpamaram
LB Nagar
Nagole
Source : Proptiger DataLabs Research
Upcoming InfrastructureOuter Ring Road
Page 09 EMERGING MANUFACTURING HUB
Shamirpet
Keesara
Ghatkesar
Patancheru
Exis ng
Upcoming
21.3 Kms
Figure 6 - ORR
158 kms. In length with a width of 150m, ORR is an 8-lane fenced expressway which has 33 radial roads that connect it with the Inner Ring Road and the upcoming Regional Ring Road
21.3 Kms. stretch of ORR, to be completed by Dec’16, will improve connectivity of North-West Hyderabad with upcoming IT/ITeS hubs of East Hyderabad
State-run Telangana State Road Transport Corporation (TSRTC) is planning to build 22 terminals-cum-depots (TCD) along the Outer Ring Road
Source : Proptiger DataLabs Research
Upcoming InfrastructureMMTS – Suburban Rail Network
Page 10 EMERGING MANUFACTURING HUB
Source : Proptiger DataLabs Research
Stage StretchCost
(Rs.Crore)Length (Kms.)
1
Tellapur-Patancheru 32 5.5
Secunderabad-Bolarum 30 14.0
Sanathnagar-Moula Ali 170
2 Bolarum-Medchal 74 14.0
Exis ng Suburban Rail
Proposed Suburban Rail
Patancheru
TellapurLingampally
Sanathnagar
Begumpet
Hyderabad Ctrl. Jn.
Secunderabad
MalkajgiriMoula Ali
Medchal
Bolarum
Table 3 - List of suburban rail networks
Figure 7 - Upcoming Suburban Railway Sta ons
22.4
Upcoming InfrastructureHyderabad Metro
Page 11 EMERGING MANUFACTURING HUB
Source : Proptiger DataLabs Research
1
MiyapurKPHB
SR Nagar
LB Nagar
Figure 8 – Proposed Metro Route
To be built on PPP-basis by Central Govt. and L&T, the 72 Kms. long project is estimated to cost Rs.14,132 Crore, to be operational by 2016
With a frequency of 3 to 5 minutes during peak hours, Metro is expected to carry about 17 lakh passengers per day by 2017 and 22 lakh by 2024
L&T has planned to develop 18.5 million sq.ft. of realty space in a phased manner in sync with market requirements over the next 8-10 years, across ~20 locations in different micro markets of Hyderabad
About 1.1 million sq.ft. of high quality retail and office space is underway in the first phase across three locations- Punjagutta, Erramanzil and Hi-Tec City, to be commissioned in 2016
Hyderabad Metro Rail is expected to reduce the tra�c from the high density corridors of North-Western region
Real Estate LandscapeSupply & Pricing
Page 12 NORTH-WEST HYDERABAD EMERGING MANUFACTURING HUB
Source : Proptiger DataLabs Research
Note: 1. Analysis includes Apartments and Villas across the region 2. Price weighed on number of BHK units in respective projects
18%
42%
4+ BHK
Apr-Dec’ 13 CY 2014 CY 2015
39%
1%
9%
53%
36%
2%
7%
61%
32%
3 BHK 2 BHK 1 BHK
100%
80%
60%
40%
20%
0%
% of total launches
Figure 9 - Residential units launched since 2013 in North-West Hyderabad1
2,000
Q2
CY
’ 13
3,0003,097
3,928
3,085
4,000
5,000
Q3
CY
’ 13
Q4
CY
’ 13
Q1
CY
’ 14
Q2
CY
’ 14
Q3
CY
’ 14
Q4
CY
’ 14
Q1
CY
’ 15
Q2
CY
’ 15
Q3
CY
’ 15
Q4
CY
’ 15
3,135 3,168 3,182 3,196 3,215 3,236 3,257 3,278 3,317
3,8514,024 4,029 4,069
4,101 4,070 4,086 4,009 4,041 4,093
Apartments VillasBSP (Rs./sq.ft.)
Figure 10 - Wt. avg. BSP (Rs./sq.ft.) of residential units since 2013 in North-West Hyderabad
Analysis of Launches in North-West Hyderabad
Emerging real estate hub as ~40% of launches in Hyderabad have been concentrated in this region
Apartments accounted for nearly 65% of the total launches since 2013
Over 50% of launches have been in the 3-BHK category while 2 and 4-BHK have contributed ~36% and ~12% since 2013
Kondapur, Miyapur and Kompally are the prime localities in the region contributing 45% to the overall launches in the region since 2013
~80% of under-construction units will be complete by 2017. Out of these, 47% will be 2-BHK and 35% will be 3-BHK
Analysis of Pricing in North-West Hyderabad
Apartments are priced in the range of Rs.3,000 - 3,320 psf while villas are priced at Rs.3,900 -4,100 psf.
While 90% of the projects in the region are in the affordable segment, a few luxury projects have been launched in Kukatpally and Kondapur in the Rs.8,700-9,000 psf. price range
Kondapur, Chandanagar and Tellapur have witnessed a price appreciation of 10-18% over the last 12 months
1 2
Real Estate LandscapeAbsorption & Inventory
Page 13 NORTH-WEST HYDERABAD EMERGING MANUFACTURING HUB
Source : Proptiger DataLabs Research
45%
14%
4+ BHK
Apr-Dec’ 13 CY 2014 CY 2015
40%
1%
45%
15%
39%
1%
47%
38%
1%
3 BHK 2 BHK 1 BHK
100%
80%
60%
40%
20%
0%
% of units in inventory
Figure 12 - Unsold Inventory of residential units since April 2013 in North-West Hyderabad
14%
1
10%
49%
4+ BHK
Apr-Dec’ 13 CY 2014 CY 2015
39%
2%
9%
50%
39%
2%
10%
51%
38%
1%
3 BHK 2 BHK 1 BHK
100%
80%
60%
40%
20%
0%
% of absorbed units
Figure 11 - Residential units sold since April 2013 in North-West Hyderabad1
Analysis of Sales in North-West Hyderabad
Region accounts for ~44% of absorption in Hyderabad across apartments and villas from April’13 till Dec’15
69% of units sold over the last 12 months have been apartments
Consistent in-line with the launches, 3-BHK units have dominated the absorption of last 12 months contributing ~50% to the total sales in the region, followed by 2-BHK (39%)
Kukatpally, Miyapur, Kompally and Bachupally are the top grossers in terms of absorption across localities with over 50% contribution of total sales over the last 12 months
Analysis of Inventory in North-West Hyderabad
44% of Hyderabad’s inventory is stacked up in the North-Western region wherein 34% of units were launched in last 12 months
Apartments constitute 75% of inventory in the region, wherein ~40% are 2-BHK units and ~45% are 3-BHK units
Kukatpally, Kondapur, Kompally and Bachupally together contribute 60% of North-West Hyderabad’s inventory
Note: 1. Analysis includes Apartments and Villas across the region
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