North-West Hyderabad: A Potential Gold Mine For Investors
With the redesigning of the proposed Information Technology Investment Region (ITIR) along the Outer Ring Road (ORR), an upward spiral in economic growth, robust infrastructure, ample manpower and a business-friendly ecosystem, the real estate sector in North-West Hyderabad is expected to benefit substantially in the medium term.
PropTiger DataLabs' latest report, 'North-West Hyderabad, Emerging Manufacturing Hub', shows how this region is coming up as a real estate hotspot, accounting for 44 per cent of total absorption – in apartment and villa categories – in Hyderabad from April 2013 to December 2015. The report also shows that Kukatpally, Miyapur, Kompally and Bachupally were the top grossers in terms of absorption across localities, with a share of over 50 per cent of total sales, in the 12 months to December 2015.
Among the major drivers of this real estate revival in Hyderabad's northwestern parts are the proposed ITIR and completion of the ORR. ITIR, which plans to include IT/ITeS SEZs, IT parks, industrial parks, warehouses and export-oriented zones, is expected to create direct employment for about 15 lakh people. ITIR's alignment will not only boost the connectivity of the region but will also ensure uniform growth across all major localities of the city.
Anurag Jhanwar, head of consulting and data insights at PropTiger.com, says: “Connectivity and social infrastructure play a key role whenever someone is planning to invest in real estate. So, the development of ITIR along the Outer Ring Road will provide the necessary thrust to urban infrastructure, and people will find it easier to live towards the peripheral areas as well.”
On ITIR, Jhanwar says the aim is to create economic pockets for generating employment and giving more purchasing power to people. “All these steps are expected to revive the investment cycle. They will create a plethora of opportunities for the real estate sector which will cater to the growing influx of people in these areas.”
Expected to be completed in two phases over 25 years, the ITIR project was approved jointly by the Centre and the Telangana government in September 2013 to promote investment in information technology (IT), IT-enabled services (ITeS) and the electronic hardware sector. The mop-up from IT/ITeS exports from this region is expected to be Rs 2.35 lakh crore. All these activities point to an ideal atmosphere for real estate investors.
Also, the 158-km, eight-lane, fenced ORR expressway connected with the Inner Ring Road and the upcoming Regional Ring Road will further address the connectivity issues. The government will identify and earmark land, within one km of the ORR, to be developed for industrial purposes.
Among other infrastructure initiatives, about 20 million square feet of real estate space is planned for development over the next 8-10 years, in sync with the Hyderabad Metro (expected to be operational by this year). The Regional Ring Road, likely to be completed by December 2016, will also improve the connectivity between North-West Hyderabad and the IT/ITeS hubs of East Hyderabad. The suburban railway network is also slated to be augmented with four additional stretches that will boost the overall connectivity within the city.