® Gachibowli, Hyderabad Transformation from an isolated region to a buzzing IT-ITeS and BFSI destination Micro Market Overview Report April 2018 About Micro Market Gachibowli is a 15 km stretch, that begins from Microsoft, Infosys and many more. Gachibowli Nallagandla-Tellapur along Financial District, has emerged as a top employment destination of Nanakramguda, Kokapet, Narsingi, Raidurg and Hyderabad and attracts working professionals stretches up to Manikonda. Recognized today as from various parts of India. These commercial a popular IT-ITeS and BFSI hub of Hyderabad, office developments have attracted residential Gachibowli has emerged as a sought-after developers to come up with projects in the destination for commercial office spaces as well nearby micro markets and now the region is as residential developments. Gachibowli falls in booming with massive real estate activity. the western periphery of Hyderabad and was one Despite large residential and commercial real of the far-flung regions of the city, where estate activity, the retail activity is yet to pick up in development was minimal and residential activity was almost negligible. However, Gachibowli has this region and the nearest mall (Inorbit) is witnessed a rapid transformation in terms of located at a distance of 6 km. However, to commercial and residential real estate spaces due facilitate education needs of the residents, top- to presence of major IT-ITeS companies. rated education institutes such as ISB, University of Hyderabad, IIIT and National Institute of Gachibowli is 6 km from HITEC city and has Tourism and Hospitality Management are present presence of companies such as ICICI, CMC, in Gachibowli. Franklin Templeton, UBS, Cognizant, IBM, Gachibowli recognized today as a popular IT-ITeS and BFSI hub of Hyderabad ® Micro Market Overview Report | Gachibowli, Hyderabad 1 Connectivity Gachibowli enjoys excellent connectivity to other parts of Hyderabad. Located on the western flank of the city, Airport Gachibowli enjoys excellent connectivity to other parts of Hyderabad. Gachibowli is well-connected to the RGI airport (located 32 km away) via ORR. Road Ÿ Gachibowli has easy accessibility to the Outer Rail ring road (ORR) via Old Mumbai Highway, Pullela Gopichand Academy road and ISB road Ÿ The nearest MMTS railway station is Lingampally, also. located 7 km away from Gachibowli and HITEC city railway station at a distance of 9 km. Ÿ The micro market also provides smooth access to Rajiv Gandhi International Airport Ÿ Metro Rail: Phase 2 of L&T Hyderabad metro rail Shamshabad, HITEC city and Mehdipatnam. (HMR) is planned to come between Raidurg – Gachibowli – Shamshabad Airport (28 km). ® Micro Market Overview Report | Gachibowli, Hyderabad 2 Major Growth Drivers Ÿ Proximity to ORR which enhances the employment opportunities and has triggered connectivity and provides easy access to key residential activity. parts of the city. Ÿ Saturation of Madhapur and new projects coming up in Tellapur, Narsingi, Manikonda, Ÿ T h e p r o p o s e d R a i d u r g - G a c h i b o w l i - Gopanapally, Indira Nagar and Telecom Nagar Shamshabad metro is expected to trigger of Gachibowli propelled residential demand in commercial real estate activity under transit this locality. oriented development policy with L&T. Ÿ Gachibowli has the advantage of strong rental Ÿ Gachibowli has a huge presence of sports yield and high capital value appreciation which infrastructure - GMC Balayogi Athletic Stadium, also makes it a sought-after residential Indoor Stadium, Aquatic complex and New destination of Hyderabad. Rajiv Gandhi International Cricket Stadium. Ÿ Gachibowli is primarily an end-user driven Ÿ Raheja Mindspace is in proximity to Gachibowli locality with majority of the home buyers and has the presence of many global IT-ITeS working in the nearby areas. With booming IT- firms spread across 21 buildings and 10.2 msf of ITeS developments in India, the housing office space. This complex creates massive demand is likely to rise further. Gachibowli has the advantage of strong rental yield and high capital value appreciation Location DLF Cyber City Raheja Mindspace IT park IIIT Hyderabad Gachibowli ISB CARE Inorbit + Hospital Wells Forgo center Wipro Circle Divyasree NSL Orion WaveRock SEZ Nehru Outer R ing R oad Financial District Business Park Shopping Mall Outer Ring Road Educational Institute Main Road Prominent location + Hospital ® Micro Market Overview Report | Gachibowli, Hyderabad 4 Residential Market Assessment New Launch Supply Age of Inventory (Launches between 2013 to 2017) 6% 1% 4,000 33% 3,500 3,000 2,500 2,000 1,500 48% 1,000 500 12% 0 Ready to Move-in < 1 Year 1-2 Year 2-3 Years >3 Years 2013 2014 2015 2016 2017 Ÿ Over the last five years, Gachibowli has added around Ÿ About 33% units (around 3,600) of the total supply 10,900 units. Around 32% of the supply was added in since 2013, are in ready-to-move-in stages. This 2016 itself, indicating the recency of residential indicates that the region possesses a good execution developments. track record. Ÿ Working professionals from nearby IT-ITeS and BFSI Ÿ Around 48% (5,200) of the total supply since 2013, is companies find it convenient to reside at Gachibowli. As likely to complete in the next 1 - 2 years and around 12% the region primarily caters to the requirements of (around 1,400 units) are likely to complete within a junior-to-mid level employees, 66% of the supply came year. Hence, nearly 6,500 units (~60%) of the total in the mid range of INR 40-80 lakh price bracket. supply will be added in less than two years. Ÿ The presence of significant unsold inventory (5,500 units as of Q4-2017) led to the decline in supply during the last year, compelling the developers to keep a check on the new launches and focus on project execution. ® Micro Market Overview Report | Gachibowli, Hyderabad 5 Residential Market Assessment Gachibowli average price as of Q4 2017 is around INR 4,600/sft. Micro Market Price Movement wrt Supply 1,800 5,000 1,600 4,500 1,400 4,000 3,500 1,200 3,000 1,000 2,500 800 2,000 INR / sqft. Number of Units 600 1,500 400 1,000 200 500 0 0 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 New Supply (In Units) Price (INR.sqft) Ÿ The property prices in Gachibowli of Hyderabad have 1 2 m o n t h s . Wi t h r i s i n g e m p l oy m e n t risen linearly during the past two years with the opportunities in the region and improving average price as of Q4-2017 being INR 4,600/sqft. physical infrastructure, buyers are preferring Gachibowli and surrounding micro markets as Ÿ Despite the low new launches during the last years, their residential destinations. prices have appreciated by around 7% during the past ® Micro Market Overview Report | Gachibowli, Hyderabad 6 Outlook New launches likely to improve upon full-fledged implementation of RERA Ÿ Gachibowli has emerged as one of the most Biodiversity via Mindspace to Madhapur to ease traffic preferred residential destination in Hyderabad. The congest at peak hours. The presence of several location possesses excellent connectivity through corporate offices in the vicinity and availability of ORR and upcoming infrastructure upgrades such as residential developments at competitive rates Raidurg-Gachibowli-Shamshabad metro line will encourages home buyers to look for properties in help improve connectivity between Airport, Fab city, Gachibowli. With rampant real estate and Tolichowki, Manikonda and Raidurg IT offices. infrastructure developments, the future of Gachibowli Furthermore, Strategic Road Development Plan certainly seems bright. (SRDP) package IV, from state government is executing a multiple underpass project from ® Micro Market Overview Report | Gachibowli, Hyderabad 7 Unit 3, 14th floor, Salarpuria Sattva Knowledge City, Plot no.2, Inorbit Mall Road, HITEC City, Hyderabad 500081 T : +91 40 67868383 ® All information in this report is provided solely for internal circulation and reference purposes. 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