Real Insights: Locality Snapshot

Kondapur -

1. Overview is a suburb located on the north-western part of Hyderabad, about 20 km from the heart of the city, in . Strategically located in the Cyberabad Information Technology Zone, it has gradually progressed into a buzzing business hub. It is renowned for its connectivity as well as infrastructure facilities which has resulted in its growth as a prominent residential realty destination.

Figure 1 Location map of Kondapur Source: Real Estate Insights by CommonFloor.com

2. Connectivity Kondapur is nestled between some major roads such as Old Mumbai Road, the - Road as well as the Hitech City Road. Some of the other important roads passing through Kondapur are the Botanical Garden Road and the Police Colony Road. APSRTC buses ply along the area with many bus stops dotting it. The nearest railway station from Kondapur is the Hitech City railway station, located about 3 km away, along the Hitech City Road. The Rajiv Gandhi International Airport at is located about 33 km away along the Outer Ring Road (ORR). The proposed Metro railway station at Miyapur is just about 5 km away along the Gachibowli-Miyapur Road while the nearest MMTS railway station is located at Khairatabad, about 14 km away.

3. Infrastructure Kondapur has many important infrastructure facilities which has enhanced its appeal as a residential destination. Some of the reputed schools in the area are Jain Heritage Cambridge School, Arbor International School and TIME School, among others. There are some prestigious colleges in the area such as International Institute of Information Technol- ogy, Gunter Vignan Jr College and Vignan Vidyalaya Jr College, among others. The area also has a few important health- care centers like Apollo Clinic, Civil hospital and Sunshine Dental clinic, among others. Some of the important religious institutions in the area are Raghavendra Swamy temple, Saibaba temple and Our Lady of Good Health church, among others. Besides, there are many important facilities like branches of important banks, shopping centers and restau- rants, among others. The area is also renowned for many renowned parks like Night Safari Park, Sri Kotla Vijaybhaskar Reddy Botanical Garden and Gautami Enclave Park, among others. There are also many water bodies in the area.

4. Real Estate Market Analyses Kondapur has gained prominence due to the influx of many IT companies as well as the development of the financial district in close vicinity. Surrounded by many commercial complexes and IT offices, it has become one of the prime locations for builders and a favourite destination for the IT workforce to settle down. Kondapur has many residential pockets scattered across in the form of residential colonies, enclaves and layouts. Some of these residential pockets are Raghavendra Colony, JV Hills, Rajarajeshwari Nagar, Jagruthi Colony, Hanuman Nagar, Camelot Layout, Laxmi Nagar, Police Colony, Prashanth Nagar Colony, Forest Dept Colony, Sai Pruthvi Estate, CMC Enclave and Sri Ramnagar, among others.

Market Segmentation for Apartments based on Pricing

17% 7% Affordable (20-40 L) 10% 7% Mid-range (40-70 L) 72% Luxury (70 L – 1 Cr) 52% 14% Ultra luxury (> 1 Cr) 21%

Figure 3 Pricing for Completed Projects Figure 2 Pricing for Upcoming Projects Source: Real Estate insights by CommonFloor.com

Fig. 1 & 2 indicate that there is high demand for property in the mid-range segment. And this trend is growing even further. There has been a substantial increase in demand for mid-segment properties from 52 to 72 per cent. This is due to the growing demand from the IT professionals working in the area as well as from nearby areas such as Gachibowli and Hitech City where prices are relatively high. There are also now a large number of individuals with dual incomes as well as higher disposable incomes. Add to this, today, more number of people are aspiring for ‘more than affordable’ houses.

Capital and Rental Values of Multi-storey Apartments in Kondapur in Q1 2014 Table 1 Property Prices in Kondapur

Capital Values (Rs/Sq. ft.) Rental Values (Rs/Sq. ft.) Min. Price 3,620 14 Max. Price 3,790 12 Avg. Price 3,705 13 Appreciation/Depreciation 1 per cent NA (compared to Q4, 2013)

Source: Real Estate Insights by CommonFloor.com Market Segmentation for Apartments based on BHK configuration

58% 54% 2 BHK 5% 2% 3 BHK 4 BHK

37% 44%

Figure 5 BHK proportion for Completed projects Figure 4 BHK Proportions for Upcoming projects Source: Real Estate Insights by CommonFloor.com

Fig. 3 & 4 clearly indicate that 3 BHKs are the most preferred property type in the locality. However, the demand for 2BHK is also on the rise. The demand for 2BHK has increased from 37 per cent to 44 per cent. This can be attributed to various reasons including an increase in the number of middle-class nuclear families and also the growing preference among IT professionals for cost-effective smaller houses instead of expensive large ones. Additionally, many professionals with smaller investment brackets are buying here and later putting it on rent.

Price Trends in Kondapur

3800

3700

3600

3500

3400 WA Price (per sq.ft.)

3300

3200

3100 Jan-March, 2013 April-June, 2013 July-Sept, 2013 Oct-Dec, 2013 Jan-March, 2014

Figure 6 Price trends in Kondapur Source: Real Estate Insights by CommonFloor.com Fig. 5 shows that there has been a steady increase in residential prices in Kondapur since the Jan-March 2013 quarter. There was a slight slump in prices during the July-Sept 2013 quarter. However, since then there has been a steady upswing. There was a 10 per cent increase in prices in the Jan-March, 2014 quarter compared to the subsequent period last year, and a 3 per cent increase compared to the previous quarter. This is primarily due to the resolution of the deadlock as well as improved economic stability. This trend is expected to continue in the future due to stability returning to the region.

Rentals in Kondapur (in Rs) 50000 Fig. 6 indicates that the maximum rentals for 45000 3 BHK apartments in Kondapur is much 40000 Max Expected Amt higher than that for 2 BHK units despite the 35000 (Rs) minimum rentals being lesser for 3 BHK units. 30000 25000 Min.Expected Amt Hence, from a tenant’s point of view, it would 20000 (Rs) be better to rent a 2 BHK apartment unless it 15000 Avg.Expected Amt (Rs) is extremely essential to rent a 3 BHK unit. 10000 However, from an investor's perspective, 5000 higher returns can be got by investing in 3 0 BHK units compared to 2 BHK units. 1 BHK Apt 2 BHK Apt 3 BHK Apt

Source: Real Estate Insights by Figure 7 Rentals for residential units in Kondapur for different BHK CommonFloor.com configurations

Capital Values per Sq. ft. (in Rs) for residential units

Figure 8 indicates that the maximum 9000 expected capital value for 2 BHK 8000 apartments is higher than that for 3 and 4 7000 BHK units. Besides, the minimum 6000 5000 expected capital value for 2 BHK units is Max Expected Amt (Rs) 4000 Min.Expected Amt (Rs) higher than that for 3 BHK units. Hence, 3000 from a buyer's perspective, it is better to 2000 Avg.Expected Amt (Rs) buy 4 BHK units than 2 BHK units due to 1000 the cost advantage. However, from an 0 2 BHK 3 BHK 4 BHK 4 BHK 5 BHK investors’ perspective, it is more lucrative Apt Apt Apt Villa Villa to invest in 2 BHK units as he would get more value for his money on sale. Figure 8 Capital values per sq. ft. for apartments in Kondapur for different BHK configurations For villas, the minimum and maximum capital value for both 4 and 5 BHK units Source: Real Estate Insights by CommonFloor.com are almost the same. Hence, from a buyer's point of view it makes more sense to buy a 5 BHK unit while from an investor's point of view either of the two can be equally lucrative.

Area in Sq.ft. in Kondapur for residential units

Figure 9 indicates that the maximum and 6000 minimum area in sq. ft. for 4 BHK 5000 apartments as expected is greater than that for 2 and 3 BHK units. Considering that the 4000 Max.Area capital values for 3 BHK apartments is 3000 Min.Area almost at par with that of 4 BHK units, it 2000 makes more sense as an end user to invest Avg.Area 1000 in 4 BHK units. However, from an investor's point of view, it is more lucrative from an 0 2 BHK Apt 3 BHK Apt 4 BHK Apt 4 BHK 5 BHK investor's perspective to invest in 3 BHK Villa Villa apartments. The advantage that an investor has by investing in 3 BHK units is Figure 9 Area in sq. ft. for apartments in Kondapur for different BHK that rentals are quite high and there is a configurations steady demand for such units. In Source: Real Estate Insights by CommonFloor.com comparison demand is lower for renting 4 BHK units because the rentals are higher. Moreover, more time and effort is required by the tenant to maintain them. For villas, it can be seen that the sq.ft. area for 4 BHK units is greater than that for 5 BHK units. Moreover, since the capital values of 4 BHK units is on par with that for 5 BHK units, it would be more advantageous to invest in 5 BHK units from an end user's perspective. Investors are also expected to get higher returns out of 5 BHK units, provided there is a steady demand for them.

Key Completed residential Projects in Kondapur Some of the important completed apartment projects in Kondapur are Gauthami Sigma Towers by Gauthami Developers, Prime Splendour by Prime Constructions, Reliance Paradise by Reliance Builders, Tranquil Towers by Sree Thirumala Constructions and Bharat Iconia by Bharat Infratech Projects, among others. Table 2 List of Premium Upcoming Apartment Projects in Kondapur

Project Name Builder Name Total Units Launch Date Expected Possession Date Luxor Apartments Trishala Infrastructure 474 June, 2013 Dec, 2014

Pranit Galaxy Apartments Pranit Projects Pvt Ltd 468 Nov, 2013 Dec, 2016

RV Bhaijikunj R V Nirmaan Pvt Ltd 306 Aug, 2012 June, 2015

RV Bhaiji Panchajanya R V Nirmaan Pvt Ltd 306 Feb, 2013 March, 2015

SVC Treewalk SVC Ventures Pvt Ltd 192 Dec, 2013 Dec, 2015

Prime Legend Prime Constructions 130 Aug, 2013 Jan, 2015

SK Wonders NCB Shriya Constructions 96 March, 2013 Oct, 2015

Gem Vivendas Ascentia Gem Vivendas 92 Jan, 2014 Feb, 2016

Source: Real Estate insights by Commonfloor.com

Advantages of staying in Kondapur • Well connected to Hitech City and Gachibowli • Transport facilites like buses and trains are available • Good infrastructure facilities • High growth prospects • Calm and peaceful locality • Various residential options • Well connected to the International airport • Wide roads, with fewer traffic jams • Pollution-free environment

Challenges of staying in Kondapur • Water scarcity especially during summers • Approach roads not properly developed • Traffic congestion during peak hours

Future Prospects of Realty in Kondapur Kondapur, being in close proximity to both Hitech city and Gachibowli, is a fast-developing residential hub for IT professionals working in these IT hubs. Rentals in the area are also considerably lower than those in Hitech city and Gachibowli. Infrastructure, though fairly well developed has the scope of developing even further. With the development in infrastructure and the coming up of new facilities, the real estate market in the area is expected to get a major facelift. Considering that the prices are comparatively lower than a few years back, buyers can expect to buy residential units by availing discounts offered by developers. Investors in land as well as residential accommodation can also expect high returns in future when the prices stabilise.

------CommonFloor.com maxHeap Technologies Pvt Ltd #298,299 SGR Towers 7th Cross, Domlur, Bangalore - 560071. ------Authors Ranjan Joseph Priyanka Kapoor Meha Singla Research Associate Chief Editor Manager Research [email protected] [email protected] [email protected] Bangalore Bangalore Bangalore

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Disclaimer: The document above is written by the Domain Research Team at Commonfloor.com, ’s fastest growing real estate website known for its unbiased prognosis in Real Estate sector. The information provided in this report is based on CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps. It should be considered as a guideline and not in absolute certainty. While care has been taken for groundwork, no responsibility is accepted for the accuracy of whole or any part. This information is confidential and the sole property of CommonFloor.com. It should not be reproduced in any form, in part or whole, without prior permission.