K KISHORE KUMAR

AUGUST 2011

Mc Kinsey Global Institutes latest report Indias Urban Awakening highlights interesting and informative trends at National level by 2030. Current GDP will increase by 5X Urban India population will reach 40% from current 30% 590 million Indians will reside in urban areas in 2030 up from 290 million in 2001

70% of new employment generated in India would be in cities

Middle income households ( Rs 2 lac to 10 lac /annum) will increase from 34 million to 147 million To meet this kind of growth 700-900 million sq mtrs of commercial and residential space needs to be built or a new Chicago every year

WHY CITIES WOULD BE IMPORTANT FOR GOVT 85% of total tax revenue of India would be from urban areas 200 million people living close to 70 cities will benefit directly can come out of poverty
Achieving INCLUSIVE GROWTH goal by the Govt. would be possible only by investing in city infrastructure. Cost of providing services in higher concentration of population that live in cities is cheaper by 30-50% as compared to providing such services in sparsely populated areas

WHY CITIES WOULD BE IMPORTANT FOR GOVT Not providing services like roads/drinking water/sanitation/ public transportation will lead to huge problems such as Decay of urban areas Socio-economic problems Deter investors from investing in urban centers Hamper targeted economic growth of 8-10% Higher unemployment due to slow economic growth

INVESTMENT IN CITIES IS A MUST

PROSPECTS FOR HYDERABAD

Hyderabad is today rated 2nd best Indian city to do business as per World Bank Group report- DOING BUSINESS 2011 REPORT
Hyderabad ranks 4th in terms of per capita GDP in India Hyderabad has one the best all year climate. Hyderabad being centrally located is called as North of South India & South of North India It has massive supply of educated and young population at reasonable salary levels offering significant advantage to service and IT industry

For any City to be a Great City, 2 factors are critical

Urban Planning Infrastructure

Hyderabad is fortunate to have both

URBAN PLANNING FOR HYDERABAD: Hyderabad has witnessed planned development right from the times of the Nizams HUDA ( Hyderabad Urban Development Authority) a statutary agency for the development of Hyderabad Metropolitan area was constituted in 1975 with and area of 1962 sq.km to In 2008 HMDA (Hyderabad Metropolitan Development Authority) was constituted with a jurisdiction of 7228 sq.km including authorities like HUDA; HADA (Hyderabad Airport Development Authority) and CDA (Cyberabad Development Authority) It is the 2nd largest urban development area in India after the Bangalore Metropolitan Region Development Authority (8,005 sq km).

URBAN PLANNING FOR HYDERABAD:

HMDA has prepared master plans for both Core GHMC area and extended areas till 2030. The objectives of these master plans are to promote organized development, balanced development creating hierarchy of circulation network to meet present and future needs. The master plan envisages planning, coordination, supervising, promoting and securing the planned development of the Hyderabad Metropolitan Region

INFRASTRUCTURE IN HYDERABAD:
Visionary State Govt has made significant investments in Infrastructure and attracted investments.

Some of the significant infrastructure investments are

International standard airport 11.6 KM Elevated Expressway for Airport access Flyovers for faster transit ORR ( 159 km Outer Ring Road) It is an orbital linkage to decongest the traffic flow on the existing major arterials. Satellite townships are going to come up along the ORR to decongest the city

Expansion of MMTS railway system is being taken up Road widening is going on a rapid pace Water supply from Krishna river Creation of growth hubs like FAB city; Hardware Park; Pharma city etc. Large nos of IT & Other SEZ providing quality high quality infrastructure to accelerate the industrial growth

More infra investments are in pipeline Additional water supply from Godavari river for growing population Metro Rail. Work awarded to L&T. Radial roads to connect the ORR and de-congest the traffic

CM INSPECTING THE 2ND PHASE OF ORR

OUTER RING ROAD: The 159 km ring road provides connectivity to various State Highways and National Highways, to by-pass the city of Hyderabad. The proposed corridor is aimed at :

Relieving congestion on the metropolitan area and the inner ring road and meeting future demand Providing orbital linkage to radial arterial roads Creating options for the development of future satellite townships Providing linkage to the proposed MRTS and bus system Providing quick access to the international airport from strategic parts of the city Connecting various new urban nodes outside the city, including HiTech city, the Games village, IIIT, ISB, Hardware Park, and Singapore Township Financial district

RADIAL ROADS Radial roads are a means to provide connectivity between the existing Inner Ring Road and the Outer Ring Road by way of strengthening and widening stretches between the two.

A total of 33 radial roads have been proposed at a cost of Rs.2,500 crore Japan International Cooperative Agency (JICA) is providing funds to parts of the ORR has also agreed to provide assistance to the tune of Rs.380 crore for these radial roads.

OTHER INFRASTRUCTURE

Excellent Education infrastructure

Hospitals

Several schools offer state , central and international syllabus with good infrastructure Hyderabad has several reputed institutes for higher learning like ISB; BITS; IIIT; NALSAR and is emerging as an educational hub. Recently IMT, Ghaziabad has opened its campus for MBA program. A Canadian university is starting a campus for MBA program near Airport shortly. Hyderabad has renown hospitals from a long time. Apollo hosptials with nation wide chain of hospitals has its roots in Hyderabad. Hospitals like NIMS; Global;CARE; Kamineni etc are leaders in this field.

ISB

Hotels & Convention Centers

Air, Rail & Road Connectivity

Hyderabad has all major hotel chains like Taj; ITC; Marriot; Novotel; Sarovar. Many more hotels are coming up such as Hyatt etc.
Being centrally located to all parts of the country, Hyderabad is well connected by air, rail and road. It is within 2 hours flying time to any destination within the country Hyderabad has several lakes and parks which provide lung space to citizens and help in preserving the quality of life. Osmansagar, Himayatsagar are the most renown.

Lakes and Parks

VIEW OF OSMANSAGAR LAKE

SPORTS Hyderabad has world class sports infrastructure having hosted several international events. Swarnandhra Pradesh Sports Complex Located in Gachi Bowli, this sports complex uses a synthetic turf with sophisticated sprinkler system for watering G. M. C. Balayogi Athletic Stadium This stadium has a capacity of 30,000 spectators. It is an ultra modern stadium with 8 line competition synthetic athletic track and 4-lane synthetic practice track . Gachibowli Indoor Stadium This stadium has a capacity of 4000 spectators, is fully airconditioned, and a multi-purpose stadium. It has wooden flooring which is approved by International Federation and is up to DIN standards

Aquatics Complex This complex has a capacity of 2000 spectators, is an aquatic complex for swimming, diving, water polo and synchronized events Kotla Vijay Bhaskar Reddy Indoor Stadium This multi-purpose stadium has a capacity of 2000 spectators and adopts a world class wooden flooring with temperature control. SAAP Tennis Complex, Fateh Maidan This central court has a capacity of 4000 spectators and has a 7 top class synthetic surfaces. Shooting Range, Hyderabad Central University This is an outdoor shooting range with a capacity of 600 spectators and facilities for 120 competitors at a time, with facilities for 15 different games at a time using latest electronic equipment targets Rajiv Gandhi International Cricket Stadium For hosting international cricket matches

NIGHT VIEW OF GACHIBOWLI STADIUM

REAL ESTATE Given this background, Hyderabad real estate market has greatly evolved over the years. Several PE funds like Trinity Capital; Redfort Capital; JP Morgan; Blackstone; CVC; (IL&FS), Sabre-Abraaj Capital, Lehman Brothers Holdings Inc.; Deutsche Bank AG etc have invested in this market Several national developers like Mantri; Prestige; DLF; Raheja; Lodha; L&T have a presence in the city

Current real estate capital values are among the cheapest in India for both residential and commercial properties Customers are increasingly favoring gated communities and such projects are successful
Industry bodies like CREDAI ; APRA etc contributing significantly through constructive engagement with the govt. in evolving progressive legislation to promote orderly and transparent development of the industry.

Customer oriented practices like Code of Conduct for member developers; establishing Customer grievance resolution mechanism by CREDAI indicate maturing of the real estate sector in the city

All these factors augur a bright future for Hyderabad real estate sector.

FINAL TAKE AWAY

With low capital values and robust growth prospects of real estate demand (for residential/ commercial/office space) in the future, Hyderabad real estate market offers unique investment opportunity. The prevailing fluid situation offers an investment opportunity as Hyderabad has all required factors like good infrastructure; thriving IT/ ITES and Financial services sector, cosmopolitan culture, favorable climate and above all a responsive government.

THANK YOU