NORTH WEST HYDERABAD EMERGING MANUFACTURING HUB FEBRUARY 2016 Structure

INSIGHTS NORTH-WEST MANUFACTURING UPCOMING REAL ESTATE HYDERABAD HUB INFRASTRUCTURE LANDSCAPE OVERVIEW

Page 02 NORTH WEST HYDERABAD EMERGING MANUFACTURING HUB Key Insights

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.

Page 03 NORTH WEST HYDERABAD EMERGING MANUFACTURING HUB North-West Hyderabad Overview

North-West Hyderabad

Medchal 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

Bachupalli North-Western region is a mixed zone cluster comprising of Kompally manufacturing and IT/ITeS

Patancheru Bolarum Nizampet Corridor 1 of the upcoming Hyderabad Metro from Miyapur to LB Miyapur Nagar likely to improve connectivity with other parts of the city Alwal Chanda Nagar Kukatpally Upcoming organized retail cluster with presence of Grade A Tellapur Bowenpally malls in localities such as Miyapur, Nizampet and Kukatpally Kondapur Sanath Mo Nagar Nagar Balamrai Proximity to IT/ITeS zones in Gachibowli and HiTech City and railway stations at HiTech City, Borabanda and Bharatnagar

Figure 1 – North-West Hyderabad Map

Source : Proptiger DataLabs Research

Page 04 EMERGING MANUFACTURING HUB Manufacturing Hub Epicenter for Pharma

S.No. Industrial Area Major Companies

1 Patancheru Industrial Area Fenner India, Praxair India

Janachaitanya Industrial 2 Coca Cola Factory, TFL Quinn India, L&T Area, Miyapur ALEAP Industrial Area, 3 Neuheit Pharma, Lyophilization Systems, TherDose 1 Gajularamaram 3 2 IDL Factory, Usha International, MTAR 4 Kukatpally Industrial Estate Technologies, Hindustan Aeronautics, BHEL 4 5 Kattedan Industrial Area Dukes, Hindustan Adhesives, Balaji Packagings 5 6 Shree Vinayaka Life Sciences, Therdose Pharma, 6 IDA Jeedimatla Alphine Pharmaceutical, HMT 7 Indian Drugs and Pharmaceuticals Limited (IDPL), Balanagar Industrial 7 SEC Industries, Usha International, Khaitan, BHEL Development Area R&D

Table 1 - List of Industrial Areas in North-West Hyderabad

Figure 2 - Industrial Areas of North-West Hyderabad

Source : Proptiger DataLabs Research

Page 05 NORTH WEST HYDERABAD EMERGING MANUFACTURING HUB Manufacturing Hub Hyderabad-Nagpur Industrial Corridor (HNIC)

Six Industrial corridors planned for development along the HNIC Influence important national and state highways Region Phase 1 - Hyderabad-Warangal Industrial Corridor, Hyderabad-Nagpur Industrial Corridor (HNIC) and Hyderabad-Bengaluru Industrial Corridor Nagpur Phase 2 - Hyderabad-Mancherial Industrial Corridor, Hyderabad-Nalgonda Hyderabad-Nagpur Medchal Industrial Corridor Industrial Corridor and Hyderabad-Khammam Industrial Corridor Wardha 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 50 K Chandrapur Kompally ms. HNIC Influence - 50 Kms. on either side of the corridor and would cover a total 50 Kms. population of 2.7 Crore Kukatpally Alwal Areas under influence - Hyderabad, Ranga Reddy, Medak, Nizamabad, Nalgon- Adilabad da, Warangal, Karimnagar, Adilabad, Chandrapur, Wardha and Nagpur

Regions covered in this corridor would be developed with a specific industry Nizamabad Karimnagar Industrial corridor will connect economies of Telangana with Maharashtra Medak Warangal District-wise focus on Industries Ranga Reddy Hyderabad District Industries Nalgonda Locali es in Hyderabad that Medak Edible Oil Refining, Handloom Units, Handicrafts would be included in this corridor Nalgonda Service and Cement Industry Figure 3 - Hyderabad-Nagpur Industrial Corridor 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

Table 2 - District-wise focus on Industries

Source : Socio Economic Outlook 2015, Government of Telangana Planning Department

Page 06 EMERGING MANUFACTURING HUB Manufacturing Hub ITIR (Information Technology Investment Region)

ITIR ITIR Medchal Approved jointly by Govt. of India and Govt. of Telangana in Septem- Approved jointly by Govt. of India and Govt. of Telangana in September 2013 to ber 2013 to promote investment in IT/ITeS and electronic hardware promote investment in IT/ITeS and electronic hardware sector, expected to be sector, expected to be completed over a period of 25 years in 2 completed over a period of 25 years in 2 phases 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 To be developed along the ORR, where the government is already in Growth Corridors (TOGCO).uter Ring Road the process of creating Transit Oriental Growth Corridors (TOGC)

The government lands would be iden fied Bina cohunpea kllilometre range on both sides of the ORR and they would be marked for industrial purpose, so as to reducKeo m tphaell yhassle of Govt. land, within 1 Km. range of both sides of ORR, will be identified landP actoancverhersuion Bolarum and marked for industrial purpose, so as to reduce the hassle of land Nizampet conversion Planned to include IT SEZs, MITiy papaurrks, industrial parks, warehouses and export oriented zones and is expected to create direct employment of ~15 lakhs andA ilnwdailrect employment of ~50 lCahkahnsda Nagar Planned to include IT/ITeS SEZs, IT parks, industrial parks, warehouses Kukatpally Tellapur and export oriented zones and is expected to create direct employment Promoted by the Central government’s financial assistance, where CeBnotwreen wpaillly release of ~15 lakhs and indirect employment of ~50 lakhs Rs. 50 Crore for every 100 acre land in the ITIR and is expected to generate IT exports of Rs. 2.35 Lakh Crore. Sanath Mo Nagar Nagar Balamrai Promoted by the Central government’s financial assistance, where Centre will release Rs. 50 Crore for every 100 acre land in the ITIR and 1 KM is expected to generate IT/ITeS exports of Rs. 2.35 Lakh Crore.

1 KM

Figure 4 – Upcoming ITIR

Source : Proptiger DataLabs Research

Page 07 EMERGING MANUFACTURING HUB Upcoming Infrastructure Outer Ring Road, Suburban Railways and Hyderabad Metro

Medchal

Shamirpet

Bolarum

Patancheru

Miyapur Secunderabad Tellapur Sanathnagar Ghatkesar Shilpamaram Begumpet Sitaphal Mandi

Nagole

LB Nagar Outer Ring Road Falaknuma

Suburban Railways

Hyderabad Metro Shamshabad

Figure 5 - Upcoming Infrastructure

Source : Proptiger DataLabs Research

Page 08 NORTH WEST HYDERABAD EMERGING MANUFACTURING HUB Upcoming Infrastructure Outer Ring Road

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 21. 3 Regional Ring Road Km s Shamirpet

21.3 Kms. stretch of ORR, to be completed by Dec’16, will Patancheru improve connectivity of North-West Hyderabad with Keesara upcoming IT/ITeS hubs of East Hyderabad

State-run Telangana State Road Transport Corporation Ghatkesar (TSRTC) is planning to build 22 terminals-cum-depots (TCD) along the Outer Ring Road

Exis ng

Upcoming

Figure 6 - ORR

Source : Proptiger DataLabs Research

Page 09 EMERGING MANUFACTURING HUB Upcoming Infrastructure MMTS – Suburban Rail Network

Medchal Cost Length Stage Stretch (Rs.Crore) (Kms.)

Tellapur-Patancheru 32 5.5

1 Secunderabad-Bolarum 30 14.0

Bolarum Sanathnagar-Moula Ali 170 22.4 Patancheru 2 Bolarum-Medchal 74 14.0

Table 3 - List of suburban rail networks Lingampally Tellapur

Sanathnagar Moula Ali Malkajgiri Begumpet Secunderabad

Exis ng Suburban Rail Hyderabad Ctrl. Jn. Proposed Suburban Rail

Figure 7 - Upcoming Suburban Railway Sta ons

Source : Proptiger DataLabs Research

Page 10 EMERGING MANUFACTURING HUB Upcoming Infrastructure Hyderabad Metro

Hyderabad Metro Rail is expected to reduce the tra c from the high density corridors of North-Western region 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 KPHB Miyapur1 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 SR Nagar

LB Nagar

Figure 8 – P roposed Metro Route

Source : Proptiger DataLabs Research

Page 11 EMERGING MANUFACTURING HUB Real Estate Landscape Supply & Pricing Analysis of Launches in North-West Hyderabad % of total launches 4+ BHK 3 BHK 2 BHK 1 BHK

100% Emerging real estate hub as ~40% of launches in Hyderabad have been 9% 7% 18% concentrated in this region

80% Apartments accounted for nearly 65% of the total launches since 2013 42% 53% 60% 61% Over 50% of launches have been in the 3-BHK category while 2 and 4-BHK have contributed ~36% and ~12% since 2013 40%

39% 36% 32% Kondapur, Miyapur and Kompally are the prime localities in the region 20% contributing 45% to the overall launches in the region since 2013

0% 1% 2% ~80% of under-construction units will be complete by 2017. Out of these, Apr-Dec’ 13 CY 2014 CY 2015 47% will be 2-BHK and 35% will be 3-BHK Figure 9 - Residential units 1 launched since 2013 in North-West Hyderabad

BSP (Rs./sq.ft.) Apartments Villas 5,000 Analysis of Pricing in North-West Hyderabad

Apartments are priced in the range of Rs.3,000 - 3,320 psf while villas are 4,000 4,101 4,070 4,086 4,093 4,024 4,029 4,069 4,009 4,041 priced at Rs.3,900 -4,100 psf. 3,928 3,851 While 90% of the projects in the region are in the affordable segment, a few 3,317 3,000 3,168 3,182 3,196 3,215 3,236 3,257 3,278 3,097 3,085 3,135 luxury projects have been launched in Kukatpally and Kondapur in the Rs.8,700-9,000 psf. price range

2,000 Kondapur, Chandanagar and Tellapur have witnessed a price appreciation of 10-18% over the last 12 months Q1 CY’ 14 Q1 CY’ Q1 CY’ 15 Q1 CY’ Q3 CY’ 13 Q3 CY’ 14 Q3 CY’ Q4 CY’ 13 Q4 CY’ 14 Q4 CY’ Q2 CY’ 13 Q2 CY’ Q2 CY’ 14 Q2 CY’ 15 Q3 CY’ Q4 CY’ 15 Q4 CY’ 15 Q2 CY’

Figure 10 - Wt. avg.2 BSP (Rs./sq.ft.) of residential units1 since 2013 in North-West Hyderabad

Note: 1. Analysis includes Apartments and Villas across the region 2. Price weighed on number of BHK units in respective projects Source : Proptiger DataLabs Research

Page 12 NORTH WEST HYDERABAD EMERGING MANUFACTURING HUB Real Estate Landscape Absorption & Inventory % of absorbed units 4+ BHK 3 BHK 2 BHK 1 BHK Analysis of Sales in North-West Hyderabad 100% 10% 9% 10% Region accounts for ~44% of absorption in Hyderabad across apartments and villas from April’13 till Dec’15 80%

49% 50% 51% 69% of units sold over the last 12 months have been apartments 60% Consistent in-line with the launches, 3-BHK units have dominated the 40% absorption of last 12 months contributing ~50% to the total sales in the region, followed by 2-BHK (39%) 39% 39% 38% 20% Kukatpally, Miyapur, Kompally and Bachupally are the top grossers in terms 0% 2% 2% 1% of absorption across localities with over 50% contribution of total sales over Apr-Dec’ 13 CY 2014 CY 2015 the last 12 months Figure 11 - Residential units 1 sold since April 2013 in North-West Hyderabad

% of units in inventory 4+ BHK 3 BHK 2 BHK 1 BHK 100% Analysis of Inventory in North-West Hyderabad 14% 15% 14% 44% of Hyderabad’s inventory is stacked up in the North-Western region 80% wherein 34% of units were launched in last 12 months 45% 45% 47% 60% Apartments constitute 75% of inventory in the region, wherein ~40% are 2-BHK units and ~45% are 3-BHK units 40%

40% 39% 38% Kukatpally, Kondapur, Kompally and Bachupally together contribute 60% of 20% North-West Hyderabad’s inventory

0% 1% 1% 1% Apr-Dec’ 13 CY 2014 CY 2015

Figure 12 - Unsold Inventory of residential units 1 since April 2013 in North-West Hyderabad

Note: 1. Analysis includes Apartments and Villas across the region

Source : Proptiger DataLabs Research

Page 13 NORTH WEST HYDERABAD EMERGING MANUFACTURING HUB CONTACT PROPTIGER FOR REAL ESTATE INSIGHTS: Detailed analysis of micro markets | Market Intelligence Report | Micro market surveys | Price Sensitivity analysis | City Dashboards and trends | Demand assessment

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