®

Gachibowli, Hyderabad
Transformation from an isolated region to a buzzing IT-ITeS
and BFSI destination

Micro Market Overview Report February 2019

02 Micro Market Overview Report | Gachibowli, Hyderabad Micro Market Overview Report | Gachibowli, Hyderabad 03

Micro Market Overview

About Micro Market

Gachibowli
recognized today as
a popular IT-ITeS
Gachibowli is a 15 km stretch, that originates from
and BFSI hub of
Nallagandla-Tellapur along Financial District, Hyderabad
Nanakramguda, Kokapet, Narsingi, Raidurg and stretches
up to Manikonda. Recognized today as a popular IT-ITeS
and BFSI hub of Hyderabad, Gachibowli has emerged as
a sought-after destination for commercial office spaces
as well as residential developments. Gachibowli falls in
the western periphery of Hyderabad and was one of the
far-flung regions of the city, where development was
minimal and residential activity was almost negligible.
However, Gachibowli has witnessed a rapid
transformation in terms of commercial and residential
real estate spaces due to the presence of major IT-ITeS
companies.

Gachibowli is 6 km from HITEC city and has the

presence of companies such as ICICI, CMC, Franklin
Templeton, UBS, Cognizant, IBM, Microsoft, Infosys and
many more. Gachibowli has emerged as a top
employment destination of Hyderabad and attracts
working professionals from various parts of India. These
commercial office developments have attracted
residential developers to come up with projects in the
nearby micro markets and now the region is booming
with massive real estate activity. Despite large residential
and commercial real estate activity, the retail activity is
yet to pick up in this region and the nearest mall
(Inorbit) is located at a distance of 6 km. However, to
facilitate the education needs of the residents, top-rated
education institutes such as ISB, University of
Hyderabad, IIIT and National Institute of Tourism and
Hospitality Management are present in Gachibowli.
04 Micro Market Overview Report | Gachibowli, Hyderabad Micro Market Overview Report | Gachibowli, Hyderabad 05

Micro Market Overview Micro Market Overview

Connectivity Major Growth Drivers

Located on the western flank of the city, Gachibowli enjoys excellent

connectivity to other parts of Hyderabad.

Proximity to ORR which The proposed Raidurg- Gachibowli has a huge

enhances the connectivity Gachibowli-Shamshabad presence of sports
and provides easy metro is expected to trigger infrastructure - GMC Balayogi
access to key parts commercial real estate Athletic Stadium, Indoor
of the city. activity under the transit- Stadium, Aquatic complex,
oriented development and New Rajiv Gandhi
policy with L&T. International Cricket Stadium.

Gachibowli has easy accessibility The nearest MMTS railway Gachibowli is well-connected to
to the Outer ring road (ORR) via station is Lingampally, located 7 the RGI airport (located 32 km
Old Mumbai Highway, Pullela km away from Gachibowli and away) via ORR.
Gopichand Academy road as HITEC city railway station at a
well as ISB road. distance of 9 km.

The micro market also provides Metro rail: Phase 2 of L&T

smooth access to Rajiv Gandhi Hyderabad metro rail (HMR) is
International Airport planned to come between Saturation of Madhapur and
Gachibowli is primarily an Gachibowli has the
Shamshabad, HITEC city, and Raidurg – Gachibowli –
end-user driven locality with new projects coming up in advantage of strong rental
Mehdipatnam. Shamshabad Airport (28 km).
a majority of the home Tellapur, Narsingi, Manikonda, yield and high capital
buyers working in the nearby Gopanapally, Indira Nagar and value appreciation which
areas. With booming IT-ITeS Telecom Nagar of Gachibowli also makes it a sought-
developments in India, the propelled residential demand after residential
housing demand is likely to in this locality. destination of Hyderabad.
rise further.

Gachibowli enjoys
excellent connectivity
Raheja Mindspace is in
to other parts of proximity to Gachibowli and
has the presence of many
Hyderabad. global IT-ITeS firms spread
across 21 buildings and 10.2 msf
of office space. This complex
creates massive employment
opportunities and has
triggered residential activity
06 Micro Market Overview Report | Gachibowli, Hyderabad Micro Market Overview Report | Gachibowli, Hyderabad 07

Residential Market Assessment

Location Mapping
New Launch Supply

Over the last six years, Gachibowli has added 6,000

around 14,300 units. Around 34% of the supply
was added in 2016 itself, indicating the recency
5,000
of residential developments.

Working professionals from nearby IT-ITeS and 4,000

BFSI companies find it convenient to reside at
Gachibowli. As the region primarily caters to 3,000
the requirements of junior-to-mid level
employees, 43% of the supply came in the
mid-range of INR 40-80 lakh price bracket. 2,000

The presence of significant unsold inventory 1,000

DLF Cyber City
+ Image Hospital (6,950 units as of Q3 2018) led to the decline
in supply during the last year, as the
0
IIIT Hyderabad developers focused on executing under-
GACHIBOWLI

14

16

18
15
13

17
construction projects.

20
20
20

20
20

20

9M
Raheja Mindspace IT park

Wells Forgo Centre

Indian School of Business

WaveRock SEZ Divyasree NSL Orion

Age of Inventory (Launches between 2013 to Q3 2018)
Outer Ring Road
oad

Financial District
Ring R

5%

About 29% units (around 4,150) of the total

29%
Outer

supply since 2013, are in ready-to-move-in

stages. This indicates that the region
possesses a good execution track record. 31%

Around 35% (4,950) of the total supply since

2013, is likely to complete within the next year
Business Park
and around 31% (around 4,400 units) are likely
Outer Ring Road to complete within a year. Hence, nearly 9,350
units (~66%) of the total supply will be added
Main Road in less than two years.
35%
+ Hospital

Educational Institute
Ready to Move-in < 1 Year
Prominent location 1-2 Year 2-3 Years
08 Micro Market Overview Report | Gachibowli, Hyderabad Micro Market Overview Report | Gachibowli, Hyderabad 09

Micro Market Price Movement wrt Supply Outlook

3,500 5,000

3,000
4,500
2,500

2,000 Gachibowli has emerged as one of the most

4,000 preferred residential destinations in Hyderabad.
1,500 The location possesses excellent connectivity
1,000 through ORR and upcoming infrastructure
3,500
upgrades such as Raidurg-Gachibowli-
500
Shamshabad metro line will help improve
0 3,000 connectivity between Airport, Fab city,
Tolichowki, Manikonda, and Raidurg IT offices.
16
15

16

17
16

18
15

18
15

17
17
16

18
15

17 Furthermore, the state government under its

20
20

20

20
20

20
20

20
20

20
20

20
20

20
20

4-
4-

4-

3-
3-

2-
2-

3-
3-

2-
2-

1-
1-

1-
1-

Strategic Road Development Plan (SRDP)

Q
Q

Q
Q

Q
Q

Q
Q

Q
Q

Q
Q

Q
Q

package IV, is executing a multiple underpass

project from Biodiversity via Mindspace to
New Supply (In Units) Price (INR/sqft) Madhapur to ease traffic congest at peak hours.

The presence of several corporate offices in the

The property prices in Gachibowli have risen linearly during the past two years with the average price as of Q3 vicinity and availability of residential
2018 being INR 4,700/sqft. developments at competitive rates encourages
home buyers to look for properties in
Despite the low new launches during the last years, prices have appreciated by around 17% during the past 12 Gachibowli. With rampant real estate and
quarters. With rising employment opportunities in the region and improving physical infrastructure, buyers are infrastructure developments, Gachibowli’s future
preferring Gachibowli and surrounding micro markets as their residential destinations. certainly seems bright.

Gachibowli
average price as of
Q3 2018 is around
INR 4,700/sft.
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