Corridor of growthCorridor Description and Rating

M I YA P U R

Areas Included: Miyapur, Chandanagar, Nizampet and Bachupally

Fig 1: Map of the corridor

Corridor of growth (COG)02

About the CorridorIntroduction

The Miyapur Corridor represents the north-westward expansion of Hyderabad along and off the National Highway-9 (NH-9) which is more popularly known as the Mumbai Highway. It consists of mixed-use and residential localities like Miyapur, Chandanagar, Bachupally and Nizampet. While Chandanagar and Miyapur are located along NH-9, Nizampet is situated at some depth from it while Bachupally is farthest out and beyond Nizampet. Chandanagar, Miyapur and Nizampet are established residential cum commercial areas while Bachupally is an upcoming destination.

The corridor has evolved as the development pushed outwards from the core IT/ITeS offices and residential hubs of Madhapur and Gachibowli. The first phase of this outward shift was towards Kukatpally/Kukatpally Housing Board and Hafeezpet. Spill-over demand from these areas for less expensive residential options (purchase as well as rental) was captured by development in the Miyapur Corridor. The capital value drops as distance from the IT/ITeS corridor increases in the north/north-west direction.

Apart from the IT/ITeS sector, the corridor also benefits from the presence of government and private sector manufacturing units. Bharat Heavy Electrical Limited (BHEL), a leading Public Sector Undertaking (PSU) is located west of Chandanagar. There is a large industrial area located in the north-west of the corridor known as the Industrial Development Area Bollaram (IDA Bollaram). It extends from Bollaram Road up to Outer Ring Road (ORR). Dr Reddy’s Laboratories has a manufacturing unit in this zone. Coca Cola India also has a bottling plant off the same road.

In case of Bachupally, demand drivers exist towards the north of the locality as well. There are pharmaceutical manufacturing units across the Jawaharlal Nehru Outer Ring Road as well as IT establishments within a 6-7 km radius.

This corridor is part of the overall growth corridor of the city as it expands north-westwards from multiple nodes.

Present Status

Development in the corridor is happening along and off existing roads. In Chandanagar, development is off the NH-9 while in Miyapur it is off NH-9 and along the Miyapur-Bollaram Road. Bachupally is further down this road. Similarly, development in Nizampet is off the Nizampet Road which touches Bollaram Road in the north and NH-9 in the south.

The corridor has a mix of apartments and plotted development. Bachupally has more plotted development options because of availability of land in the area. About 65% supply in the re-sale segment in the corridor is of multi-storey apartments followed by builder-floors/independent floors. The 2BHK format dominates across property types with a saleable area of 1000-1200 sq ft. This accounts for 61% supply in the re-sale segment with 3BHK units having 35% share. The 3BHK units are bigger in size with an average saleable area of 1500 sq ft.

Miyapur, Chandanagar and Nizampet are amongst the top 10 localities by consumer preference in the city when it comes to purchase of a residential property. Similarly, in terms of consumers looking for rental options, Miyapur is again amongst the top 10 localities of Hyderabad.

In terms of price level, the corridor caters to consumer preference in the lower price bracket. More than 60% of supply in the

corridor in the re-sale segment is within the Rs 20-40 lakh bracket. A further 29% is in the Rs 40-60 lakh segment. Together, the Rs 20-60 lakh segment accounts for 91% supply in the re-sale segment. Evaluation of consumer preference in the corridor shows that almost the same percentage of consumers are looking for options within the Rs 20-60 lakh segment. This highlights the price sensitive nature of demand in the market.

The average price level in the market is Rs 3,000 per sq ft. Miyapur and Chandanagar have options in the Rs 3,200-3,400 per sq ft price range, while capital values in Nizampet and Bachupally are on the lower side. The price level in these localities is in the Rs 2,400-2,600 per sq ft range.

In line with general market trend, the price level in the corridor has been stagnant for some time. The overall price increment in all the localities of the corridor has been under 10% for the last two years.

Infrastructure

The major infrastructure project in the corridor is the development of the Metro node at Miyapur. The Miyapur-LB Nagar Metro route is being developed as Corridor-1 with a distance of about 30 km. Miyapur to SR Nagar and SR Nagar to LB Nagar are referred to as Stage-2 and Stage-5, under the overall work plan of the Hyderabad Metro Rail network.

As per latest information, Phase-1 comprising of Nagole to Mettuguda (Stage-1) and Miyapur-SR Nagar (Stage-2), will become operational in the first week of June 2016. Operationalization of this line will build connectivity to the corridor with other residential and commercial areas of Hyderabad.

The state government has announced plans for extending the Phase-1 of the

Properties available in the corridor

The corridor offers relatively less expensive options for consumers as compared to localities which are closer

to IT/ITES office hubs. Within the corridor, Miyapur and Chandanagar are established

localities with higher capital values (Rs/sq ft). Bachupally and Nizampet come next. This price differential impacts the budget and BHK format wise spread of options.

More than 50% supply is within Rs 20-40 lakh bracket. A further 35% is in the Rs 40-60 lakh segment. Together, they account for 89% supply. This highlights the price sensitive nature of the market. Most of the supply in

Overall Connectivity Social Infrastructure Security/Water

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration

Corridor of growth (COG)03

Hyderabad Metro. From the corridors perspective, the metro line is expected to be extended by a further 13 km from Miyapur to BHEL and Patancheru. The timeline for implementation of this segment has not been declared.

An Inter-City Bus Terminal (ICBT) is also planned to be developed at Miyapur. However, the development timeline for the same is not clear at present as the proposal is awaiting some clearances.

The corridor has faced water supply problem in the summer season when due to low water level in the reservoirs, water supply was erratic coupled with low pressure in the government water supply network. Residents had to take recourse to purchasing water from private vendors.

However, Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) is working on a plan to improve the pipeline work in Serilingampally Circle. This will improve the water supply of the corridor.

Social Infrastructure

Most of the corridor is served by well evolved social and support infrastructure. The whole area along the NH-9 in the corridor is an established market with commercial and retail joints. A number of local and international schools are operational along with colleges offering graduate/post graduate education.

Outlook

The political uncertainty which had persisted for a couple of years had a negative impact on the realty market of Hyderabad. Political stability is likely to give a push to the market. This stems from the fact that many large infrastructure projects which had been stuck will finally be started and their implementation will have a positive impact on the market.

The IT/ITeS segment is a strong demand driver for realty in the corridor as well as in other areas. Recent trends show

that leasing of office space by IT/ITeS companies in Hyderabad has picked-up. Vacancy level in the office space segment is at a historically low as the office space take-up increased in 2014 and 2015. An important point to understand here is that most of the employee base of the IT/ITeS companies is young and in the lower income level (relative to industry salary levels). Such employees seek affordable rentals and purchase options. The Miyapur Corridor with its competitive price level, is perfectly placed to address this demand.

However, the price level is not expected to see major gains as this would put the market out of reach for people who form the consumer base for the corridor.

Overall, the corridor offers good residential options to consumers looking for affordable homes in a well-established area with good connectivity and social infrastructure.

Corridor of growth (COG)04

Rental demand in the corridor emanates from buyers looking for residential options close to IT/ITeS office hubs in

Madhapur and Gachibowli but cannot afford the options in localities which are close to

them. Miyapur ranks high because of its location on National Highway-9 (NH-9) and presence of support infrastructure. It is easily accessible from different areas. Between Nizampet and Chandanagar, the former scores

in terms of lower rentals while the latter is a well-established locality. Bachupally is still evolving and suffers from last mile connectivity and hence, the lower demand.

the Rs 20-40 lakh segment is in Nizampet and Miyapur localities. Miyapur, followed by Chandanagar and Nizampet, accounts for bulk of supply in the Rs 40-60 lakh bracket.

In a price sensitive market, the smaller 2BHK format with an average size of 1150 sq ft dominates the supply; its small size helps a consumer to keep acquisition cost low. Most of

the supply in the 2BHK format is in the Rs 20-40 lakh price bracket wherein Nizampet leads with the highest share of 2BHK options. The 3BHK is the second most preferred category and most of it is concentrated in Miyapur. In budget terms, 60% of 3BHK options are in the Rs 40-60 lakh price bracket with almost 75% being in the 1300-1700 sq ft size range.

Sales Price Covered Area ( Lacs) (Sq.ft)

1 BHK 15-30 510-950

2 BHK 20-50 950-1250

3 BHK 35-80 1350-2200

4 and Above 82-100 2500-4000

Best sectors to invest in a home Based on rental demand in sectors

Table 1: Sizes and prices of flats available for various room configurations

Based on home buying demand in sectors

Fig 5: Top localities by consumer for renting a house

Fig 6: Top localities by consumer for buying a house

Best bedroom configurations to buy Preferred buying and renting options

Buying Renting Total (BHKs) Total (BHKs)

1 BHK 1% 1%

2 BHK 60% 56%

3 BHK 37% 43%

4 BHK and Above 2% 0%

Table 2: Demand distribution for buying and renting

Miyapur is the most preferred locality as it offers the best infrastructure as well as connectivity. It also has options

across a wide price range from Rs 20-40 lakh to Rs 1-1.2 crore. This gives flexibility to the

consumers to choose as per their budget. Though, most consumers are looking for 3BHK options in Miyapur. Most consumers in Chandanagar are looking for 2BHK format in the Rs 20-60 lakh price bracket. Demand

for 3BHK units is mainly in the Rs 40-60 lakh budget. More than 60% demand in Nizampet is in the Rs 20-40 lakh segment and for the 2BHK format.

Consumers prefer the 2BHK format in the corridor from both house purchase as well as rent perspective. It has more than

50% share of consumer preference as rent or purchase options. This can be explained by the fact that relatively smaller size of the 2BHK apartments helps a buyer to keep the overall purchase cost on the lower side. About 84% of

consumer preference in the 2BHK segment is in the Rs 20-40 lakh segment followed by the Rs 40-60 lakh bracket with only 16% share. Almost 65% of 2BHK availability is in the 950-1200 sq ft range and this gives flexibility to consumers to choose and buy. In the Rs 40-60 lakh bracket, 73% demand is for 3BHK segment while the rest is for 2BHK formats.

Price changes and future prospects Historic Price movement

6 monthly change Yearly change

1% 4%

Table 3: Historical Price changes

The price trend over last few quarters in the corridor reflects the overall slow market conditions. The price has been flat

and has not seen any change over 6 months or 1 year.

Miyapur Corridor caters to a price sensitive demand-segment which is looking for affordable homes. The purchasing ability of this segment is effected more by slow economic conditions.

The sale had declined in the corridor leading to over-supply. But sale over last few quarters has been steady.

And price level in some localities in the corridor has seen marginal improvement. But overall price level is expected to remain flat or see marginal increase. Fig 7: Historical Price changes of corridor

Corridor of growth (COG)05

Most of the localities in the corridor fall under the R1 residential land use plan. This is the most flexible land use

zoning under the Hyderabad Metropolitan Development Authority (HMDA) Master Plan. Development of all types of residential,

retail, support retail, healthcare, education, entertainment, public and semi-public are permitted in this zone.

The area around Miyapur Metro Station has been earmarked as a Multiple-Use Zone which

will be used for Transit-Oriented Development (TOD). Permissible land use in this zone is residential, commercial, public & semi-public, recreational and peri-urban

Price movement for top localities by Consumer Preference

The price change in top localities by consumer demand over last quarter has varied across the localities. The price change varied from max of 3% to minimum of -3%. Miyapur, Gajularamaram

and Pragathi Nagar continued the marginal price increment which they have witnessed over last few quarters. Price trend in Nizampet has been positive for last few quarters.

The present price drop could’ve happened by way of correction. The average price in previous quarter had reached a level which was highest over last few years and was not sustainable. Same is the case with Chandanagar. Next few quarters will show whether the recent trend hold

Fig 8: Price changes in top localities by consumer demand

Master Plan

Fig 9: Land use of various localities in the corridor

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RESIDENTIAL

COMMERCIAL

PUBLIC AND SEMI-PUBLIC

MANUFACTURING

MULTIPLE USE ZONE

SPECIAL DEVELOPMENT ZONE

OPEN SPACES BUFFER

(around water bodies)

FOREST ZONE

BIO CONSERVATION ZONE

Infrastructure UpdatesHyderabad Metro

Miyapur is the last terminal on the Green Line of the Hyderabad Metro project which connects Miyapur in north-west of the city with LB Nagar in the south-east. It passes through the core areas of the city and connects them with

Miyapur. Part of this Green Line from Miyapur to SR Nagar (11.9 k) is to become operational soon.

Hyderabad Metro – Corridor Extension

The government is proposing to extend the reach of Corridor-1 of the Hyderabad Metro

which presently terminates at Miyapur in the corridor. The new metro route will improve the connectivity to the corridor and help the local people immensely. The route will be extended by another 13 km and connect with BHEL and Patancheru towards west and north-west.

Miyapur: Affordable and cosmopolitan residential

Miyapur is considered to be a cosmopolitan hub as new malls, shopping complexes and recreational facilities are coming up. The area is developed and is a good place to reside. Majority of property types in Miyapur are multi-storey apartments, which comprises the overall consumer’s preference. Miyapur is an area that provides both facilities and budget that attract home buyers. The locality is based very close to Hitec City. For this reason, the area is a preferred choice for potential investment.

n Source: The Times of India

Why should you invest in Chandanagar?

Chandanagar in Secunderabad became news when it was shortlisted as one of the localities which would see significant commercial establishments in the coming year. Chandanagar is well-connected via the Multi-Modal Transport System (MMTS) to other parts of the city. The South Central Railway is also a popular mode of transport among residents. The upcoming metro line will also boost the transport options of the area. The neighbouring localities include Hitec City, Gachibowli, Lingampally and Miyapur. It is strategically located on the Mumbai Highway. The property prices of Chandanagar are not very high.

n Source: Magicbricks Bureau

Where to buy an affordable house in Hyderabad?

Miyapur is an affordable locality. The area is one of Hyderabad’s busiest places. LB Nagar in Miyapur is a high-density traffic corridor. It has IT, pharmaceutical, apparel companies and other industrial development areas. Miyapur, a part of the Greater Hyderabad Municipal Corporation (GHMC), is strategically located at NH-9 (Pune-Hyderabad-Machillipatam Highway). The area enjoys proximity to IT hubs such as Hitec City (8 km) and Gachibowli (15 km). The Outer Ring Road (ORR) is also easily accessible from the locality. This makes commuting easy and here the property prices are quite reasonable.

n Source: Magicbricks Bureau

Smart tech may revive Hyderabad’s real estate

The development of smart technology in the real estate industry will help to revive Hyderabad’s sluggish market. Smart cities are defined by extensive use of technology to make life simpler and more comfortable. They are the solutions to problems that residents of Indian cities face due to improper planning and maintenance. Areas like Miyapur will be benefit from such a move. The most available property types in this locality are 2-3BHK units.

n Source: The Times of India

IN NEWS

Corridor of growth (COG)07

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