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Residential Real Estate in Hyderabad Product Image

Residential Real Estate in Hyderabad

  • Published: July 2008
  • Region: India
  • 82 Pages
  • Cygnus Research

FEATURED COMPANIES

  • Aditya Constructions
  • Amsri Builders
  • Jayabheri Group
  • Lanco Infratech Limited
  • Maytas Infra Ltd
  • Saket Engineers Pvt. Ltd
  • MORE

Introduction
The Indian economy has registered growth of 8.7% for FY08 and is expected to grow at the same level in next decade. Hyderabad contributes 15% to the State's GDP and 78% of its revenue is generated through services sector. Services include IT, hospitality and tourism, public and private transportations and banking and financial services.

Key Highlights of Report
-Younger population with higher income improves the affordability of property
- Greater connectivity to major destinations
- Efficient infrastructure in place
- Real Estate flourishes in all corners in Hyderabad
- Hyderabad offers value for investments
- Invest in gated community of 5 acres with long term investment horizon

Reasons to Buy
- Spot Investment opportunities
- Understand the factors which influence investments in real estate
- Reveals major competitors and their strategies
- Assess the various segments in Hyderabad Real estate market
- Analyses the factors influenced in making Hyderabad as fastest growing IT destination

The report covers thr current status of Gross State Domestic Product and projected GSDP. It also talks about city economic information READ MORE >

CONTENTS EXECUTIVE SUMMARY

1 GROSS STATE DOMESTIC PRODUCT OF ANDHRA PRADESH
1.1 Hyderabad contributes 15% to GSDP
1.2 Business and Industries: IT and Pharma Industries dominate
1.3 Professional educational institutions
1.4 Employment Level: IT and ITES industry will be the major employer
1.5 IT exports up by 41% in FY08
1.6 Growing population
1.7 City demographics
1.8 Affordability of property improves
1.9 Increase in housing loan disbursement

2 HYDERABAD – THE FASTEST GROWING IT DESTINATION
2.1 City Infrastructure
2.1.1 Roads to growth
2.1.2 Railway connectivity
2.1.3 Power consumption
2.1.4 Water supply
2.1.5 Sewage system
2.1.6 Education
2.1.7 City in safer seismic zone
2.1.8 Healthcare
2.1.9 Medical Tourism
2.1.10 Entertainment
2.1.11 Investment by Government and Private Enterprises
2.1.12 Hyderabad Metro Rail Project

3 HYDERABAD REAL ESTATE MARKET
3.1 Commercial Real Estate
3.2 Retail segment
3.3 Hospitality segment
3.4 Residential segment
3.4.2 Northern Hyderabad
3.4.3 Southern Hyderabad
3.4.4 Eastern Hyderabad
3.4.5 Western Hyderabad
3.5 Upcoming areas and their infrastructure
3.6 Key projects & major developers
3.7 Property prices by area in Hyderabad
3.8 Private Equity dominates investments
3.8.1 Investment Banks
3.8.2 Private Equity
3.8.3 Venture Capital
3.8.4 Pension Funds
3.9 Regulatory Development
3.9.1 Stamp Duty
3.9.2 GHMC Licensing System
3.9.3 FDI in Real Estate
3.9.4 Common Building Rules in Hyderabad
3.9.5 Floor Area Ratio

4 MAJOR COMPETITORS OF HYDERABAD
4.1 Global scenario in residential space
4.2 Global scenario in Commercial Office space
4.3 Indian scenario in Residential Space
4.3.1 Bangalore
4.3.2 Chennai
4.3.3 Hyderabad
4.3.4 Kolkata
4.3.5 Mumbai
4.3.6 National Capital Region (NCR)
4.4 Indian Scenario in Commercial Space
4.4.1 Bangalore
4.4.2 Chennai
4.4.3 Hyderabad
4.4.4 Kolkata
4.4.5 Mumbai
4.4.6 NCR

5 MAJOR PLAYERS
5.1 Aditya Constructions
5.2 Amsri Builders
5.3 Aliens Group
5.4 Aparna Constructions & Estates Pvt. Ltd.
5.5 Indu Projects
5.6 IVR Prime Urban Developers Ltd.
5.7 Janapriya Engineers Syndicate (Pvt) Ltd.
5.8 Jayabheri Group
5.9 L & T Infocity
5.10 Lanco Infratech Limited
5.11 Legend Estate Pvt Ltd
5.12 Maytas Infra Ltd
5.13 Modi properties & Investment Pvt. Ltd
5.14 My Home Constructions (P) Ltd.
5.15 NCC Urban Infrastructure Ltd
5.16 Prajay Engineers Syndicate Ltd
5.17 Ramky Estates.
5.18 Saket Engineers Pvt. Ltd
5.19 Vertex Homes

6 CONCLUSIONS AND RECOMMENDATIONS
6.2 Short-term future is bleak as RBI squeezes liquidity
6.3 Improved infrastructure will fuel the prices
6.4 SWOT Analysis
6.4.1 Strengths
6.4.2 Weaknesses
6.4.3 Opportunities
6.4.4 Threats

7 REFERENCES
ANNEXURE I: IT COMPANIES IN HYDERABAD
ANNEXURE II: MAJOR HOTELS UNDER CONSTRUCTION IN HYDERABAD ANNEXURE III: UPCOMING SHOPPING MALLS IN HYDERABAD
ANNEXURE IV: SEISMIC MAP OF INDIA
ANNEXURE V: MAJOR FOREIGN INVESTMENTS IN HYDERABAD
ANNEXURE VI: FDI IN REAL ESTATE
ANNEXURE VII: HYDERABAD REVISED BUILDING RULES, 2006

LIST OF TABLES
Table 1: Glimpse of Hyderabad
Table 1.1: Colleges in Hyderabad
Table 2.1: Major Plants Supplying Power to Hyderabad (Mar 31, 2008)
Table 2.2: Schools in Hyderabad
Table 2.3: Hospitals in Hyderabad
Table 2.4: Major Investments in Hyderabad
Table 2.5: Route of Hyderabad Metro
Table 3.1: Key Projects & Major Developers
Table 3.2: Area wise Property Prices in Hyderabad
Table 3.3: Stamp Duty in Andhra Pradesh
Table 3.4: FDI in Indian Real Estate
Table 3.5: Floor Area Ratio
Table 3.6: Road Width According to Master Plan
Table 4.1: Global Competitors of Hyderabad in Prime Retail Space
Table 4.2: Global Competitors of Hyderabad in Commercial Office Space
Table 5.1: Zonal Distribution of Hyderabad

LIST OF FIGURES
Figure 1: Boundaries of GHMC
Figure 2: GSDP of Andhra Pradesh
Figure 3: Hyderabad Contribution to GSDP
Figure 4: Expected Employment by 2015
Figure 5: GHMC Population
Figure 6: City Demographics
Figure 7: Affordability Pattern
Figure 8: Housing Loan Disbursement
Figure 9: Municipalities of Hyderabad
Figure 10: Detailed Map of Hyderabad
Figure 11: Flyovers in Hyderabad
Figure 12: Power Consumption
Figure 13: Water Supply System in Hyderabad
Figure 14: Sewage System in Hyderabad
Figure 15: Outer Ring Road Route
Figure 16: Hyderabad Metro Route
Figure 17: Growth Scenario in Hyderabad
Figure 18: Area of Western Hyderabad
Figure 19: Area of Eastern Hyderabad
Figure 20: Area of Northern Hyderabad
Figure 21: Area of Southern Hyderabad
Figure 22: FDI in Hyderabad
Figure 23: Indian Residential Property Scenario: Bangalore
Figure 24: Indian Residential Property Scenario: Chennai
Figure 25: Indian Residential Property Scenario: Hyderabad
Figure 26: Indian Residential Property Scenario: Kolkata
Figure 27: Indian Residential Property Scenario: Mumbai
Figure 28: Indian Residential Property Scenario: NCR
Figure 29: Indian Commercial Property Scenario: Bangalore
Figure 30: Indian Commercial Property Scenario: Chennai
Figure 31: Indian Commercial Property Scenario: Hyderabad
Figure 32: Indian Commercial Property Scenario: Kolkata
Figure 33: Indian Commercial Property Scenario: Mumbai
Figure 34: Indian Commercial Property Scenario: NCR

The Indian economy has registered growth of 8.7% for FY08 and is expected to grow at the same level in next decade. Robust economic growth rate has made it a preferred destination for investors. Andhra Pradesh is one of the fastest growing States in India. It contributes close to 5% to India’s GDP. Gross Domestic Product of the State, as per advance estimates for 2007-08 at 1999-2000 prices, has registered a growth rate of 10.37%. Hyderabad contributes 15% to the State’s GDP and 78% of its revenue is generated through services sector. Services include IT, hospitality and tourism, public and private transportations and banking and financial services.

Younger population with higher income improves the affordability of property

With increasing job opportunities in the city, younger people from other cities of the country are coming to Hyderabad. More than 65% population is under 35 years and 27% population falls under 25-34 years age group. These age groups are more inclined towards buying property. Per capita income has been growing at CAGR of 9.29%.

In mid 90s, property prices were 22 times the annual income. It has reduced to 4.6 times at present. Hyderabad accounts for 4% of total housing loan disbursed by banking sector across the country.

Greater connectivity to major destinations
Hyderabad is well connected to major cities of India through road network. It is connected to Mumbai, Bangalore and Kolkata. Hyderabad is also well connected to vast network of railways, with Secunderabad as the headquarters of South Central Railways (SCR). It provides smooth movement of passenger and goods across India. The city provides connectivity to major global destinations through its newly-constructed Rajiv Gandhi International Airport at Shamshabad, which has the capacity to handle over 12m passengers and 0.1m tonnes of freight in a year. It is India’s first truly world-class airport.

Efficient infrastructure in place

Hyderabad has one of the best internal surface transport systems in the country. All important roads and artery roads connecting to strategic points are 2-laned. To avoid traffic congestions, roads are well equipped with flyovers and subways. The city has a light rail transportation system known as Multi Modal Transport System (MMTS).

Currently, HUDA is supplying around 290m litres per day of water including 50m litres per day of potable water to 6m people. The supply of water is expected to increase to 385m litres per day, including 65m litres per day of potable water by 2010.

Real Estate flourishes in all corners
After the evolution of IT industry in Hyderabad, the residential property rates have seen only upward trend. Northern Hyderabad has witnessed tremendous growth in residential property rates. The availability of huge land blocks, with good infrastructure facility, led to development activities in Medchal Road and Kompally. Southern Hyderabad has seen great leap in property prices, mainly in terms of commercial property rates since January 2006 owing to fast development in the construction of Rajiv Gandhi International Airport at Shamshabad. Eastern Hyderabad, particularly Ghatkesar, Pocharam, Bongulur and Cherlapally, is developing as the educational and knowledge hub of the city. Western Hyderabad (Madhapur and Gachibowli) is the fastest growing part of the city, mainly because of the proximity to HITEC City and the proposed financial district.

Hyderabad offers value for investments
Hyderabad offers better investment opportunities as the city is in initial phase of the development. In the last 2-3 years, the city has offered more than 30% return on investments, exceeding that of Shanghai and Kuala Lumpur. Hyderabad’s Real Estate market has seen unprecedented growth in the past and continues to be one of the lucrative markets for the global players. Investment close to Rs170billion has taken place so far. Private Equity players dominate this at 70% of investment. Bigger players like Seqouia Capital, Lehman Brothers and Aquarius Investment have invested to the tune of Rs1.5 billion, Rs500m and Rs300m respectively. Major international players are looking for partners in Hyderabad.

Robust future outlook
Looking at the present demand and supply scenario of residential properties and macroeconomic situation of the economy, the prices of the residential properties will not increase in the near future. In next 2-3 years, the prices of residential properties are expected to grow at CAGR of 10-15% on better intercity connectivity and infrastructure. In the next 5-6 years, improved city infrastructure and entry of major foreign players will fuel the prices in Hyderabad’s residential market and the prices are expected to grow at CAGR of 18-20%. Under extremely tight monetary situation, the property prices in Hyderabad are expected to remain under pressure and may decline by 5% from the current level in near term of 3 months to a year.

Invest in gated community of 5 acres with long term investment horizon

It is advisable that an investor should invest in properties located in Tellapur, Moinabad, Kokapet and Narsingi with 4.5-5 acre plot size and with 4-5 years investment horizon. The demand for gated residential community is expected to increase in this investment horizon. The fear of recession in US economy can affect the returns from investment. Similarly, any down-trend in Indian economy can adversely affect the situation.

Aditya Constructions
Amsri Builders
Aliens Group
Aparna Constructions & Estates Pvt. Ltd
Indu Projects
IVR Prime Urban Developers Ltd
Janapriya Engineers Syndicate (Pvt) Ltd
Jayabheri Group
L & T Infocity
Lanco Infratech Limited
Legend Estate Pvt Ltd
Maytas Infra Ltd
Modi properties & Investment Pvt. Ltd
My Home Constructions (P) Ltd
NCC Urban Infrastructure Ltd
Prajay Engineers Syndicate Ltd
Ramky Estates
Saket Engineers Pvt. Ltd
Vertex Homes

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