HYDERABAD COMMERCIAL REALTY

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					           HYDERABAD
           COMMERCIAL REALTY




5/1/2008   Bird’s eye-view of Commercial Realty in Hyderabad

           “By FY2008 and FY 2009, the demand for Commercial real estate is expected
           to see a requirement of about 5 million sq.ft in each year. With expected
           double figure growth rates in IT/ ITES and Biotech industry, along with huge
           spurge of Retail, Entertainment, Hospitality and service industries, Hyderabad
           Commercial Realty is poised for huge expansion and offers above average
           returns on investment."
                                                                 Hyderabad Commercial realty –A Snapshot




                           Hyderabad Commercial
INDUSTRIAL GROWTH:

Hyderabad still
                           Realty
continues to be among
the sought after
destinations for IT/ITES
organizations with more
than 25 SEZs approved      Hyderabad continued to be a lead player in real estate market in South
upto 2007 December.        India with a total absorption of about 4 million sq.ft. in FY2007. With 95%
Apart from IT/ITES few
                           of IT/ITES export revenues (Rs. 18,582 Cr.) in AP, growing biotech presence,
SEZs are already
approved for Footwear,     splurge of education universities and campuses, Hyderabad is set for a
Gems & Jewellery,          robust growth curve in coming few years.
Airport products,
Biotech,
Pharmaceuticals,
Hardware and                 Key Market Enablers:
Electronics.
                                 IT/ITES industry poised to grow at 30% CAGR over next couple of
                                 years
                                 Entry of Indian Retail majors directly and through franchise models
                                 Increasing trend of Consumer buying power with high disposable
RETAIL GROWTH:                   incomes and modern retail spending patterns (Organized retailing
                                 looks to have made a positive impact on the consumer perception of
Hyderabad Retail space
                                 shopping experience)
is exploding with single
                                 Huge Multiplexes and Malls planned across the City supported by
brand outlets, multi-
branded stores,                  higher spending on Entertainment
shopping complexes
and Malls. The city is
poised for atleast 12
new Malls in FY2008,
with space for Movies,     Outlook:
Food Courts, Retail
space and Gaming. All      Apart from IT & ITES sectors the state government has been focusing on
major players including    attracting Manufacturing/Industrial and Biotech sectors to the state.
DLF, GVK, AdLabs,
InOrbit are set to enter   The rental and Capital values are expected to remain stable across most
the Retail spree in        locations across the City except for a few localities like Banjara Hills, which
Hyderabad.                 might see a rise due to high demand and limited space availability.
                           The planned townships, business parks, IT parks and SEZs are expected to
                           enter the market in the later part of FY2008 and FY2009, which is expected
                           to mitigate the demand for Grade ‘A’ office space in the city.

                                                                    INCUBATE PROFESSIONAL SERVICES

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                                                                           Hyderabad Commercial realty –A Snapshot


                     Insights                          salability:
Land of Opportunity –Insights to increasing Commercial salability                 Industries to look out for future
                                                                                  growth:
 Hyderabad has advantages of land availability in large chunks,
                                                                                      IT/ITES
 360* expansion scope, business travelers, growing incomes, higher
                       ,
                                                                                      Knowledge based Services
  ffordability
 affordability and government support for transforming it into a key
                                                                                      Retail
 destination for commercial activity in the country.
                                                                                      Hospitality
 With growth drivers from various industries and lack of quality                      Healthcare
 commercial space for business dwellings to meet the foreseen                         Manufacturing & Industrial
 demand make Hyderabad an attractive destination for Commercial                       Engineering
 realty development in the coming few years.                                          Entertainment
                                                                                      Learning & Education



          IT/ITES                           Hospitality                             Retail
 • Projected 30% CAGR over           • More than 85% of the five five-    • More than 15 new Malls
 the next 2-3 years leading to           star hotel demand is from         coming up in FY2008 and
  huge real estate demand for           Corporate sector and 60%                   FY2009.
           office space.                    are foreign business
                                                  travellers.            • Supply of Constructed Retail
  • High affordability of the       • Occupancy rates above 80%           space will be a key for retail
     clientele in this sector.         in all categories of Hotels in        development, which is in
                                        the city in the last 2 years,        shortage in all the major
     • Rise in Employment             and shortage of rooms during         locations inside and around
 opprtunities leading to higher                 peak periods.                         the city.
  disposable incomes creating       • Average room rate increased
   demand for Entertainment,         by 75% over the last 2 years.         • Areas like Madhapur,
  Hospitality, High-End retail          • By 2010, more premium            Kukatpally, Dilsukhnagar,
    and better infrastructure          hotels are planned including       Uppal etc. still present huge
             facilities.                   Taj Faluknama, Ista, Le         opportunity for Shopping
                                          Meridien, The Hyatt and                innovations.
                                                    more...




    Entertainment                       Learning &
                                         Education
   •More than 20 movie            • Hyderabad is a hub for
  screens to be added to               Technical Education
  the existing capacity in           including IT and other
    the City by FY2009.             Engineering disciplines.

•Premium movie watchers           • Huge demand for in the
 are plenty and customers             learning sphere. B B-
    are willing to pay               Schools, Engineering
 premium for convenience.              Colleges, Medical
                                        Education and
•All the malls are gearing         professional institutes.. its
  up for movie screening             all happening here.
   and gaming facilities.
                                                                               Enquiries: karthik@inqb8.net
                                                                              INCUBATE PROFESSIONAL SERVICES

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