Hotspot: From anonymity to IT-ITeS hub, story of Gachibowli

Gachibowli, situated on the western periphery of Hyderabad, is a market that consists of a 15-kilometre stretch from Nallagandla to Tellapur. It includes the Financial District, Nanakramguda, Kokapet, Narsingi, Raidurg and goes up to Manikonda. Recognised as one of the popular IT-ITeS and BFSI hubs of Hyderabad, Gachibowli has emerged as a sought-after destination for both commercial office spaces and for residential developments. The area has witnessed massive transformation in terms of commercial and residential real estate activity, driven primarily by the many major IT-ITeS companies that operate there now. 

This area is situated only six kilometres from HITEC City. It has ICICI, CMC, Franklin Templeton, UBS, Cognizant, IBM, Microsoft, Infosys and many other large firms driving multi-faceted real estate demand. As a result, it has emerged as one of the top employment destinations 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 real estate activity.

Top-rated education institutes such as ISB, University of Hyderabad, IIIT and National Institute of Tourism and Hospitality Management are present here. They are a major draw for residential developments in the vicinity. Gachibowli also has a host of commuting options that make living here quite convenient.

Over the past five years, Gachibowli has added around 10,900 housing units. Around 32 per cent of the current supply was added in 2016 itself. Working professionals from nearby IT-ITeS and BFSI companies find it convenient to reside at Gachibowli. As the region caters primarily to the requirements of junior-to-mid level employees, 66 per cent of the supply came in the mid-range price bracket of Rs 4-8 million .

Approximately 33 per cent (around 3,600 units) of the total supply since 2013 is in the ready-to-move-in stage. Around 48 per cent (5,200 units) of the total supply since 2013 is likely to be completed in one-two years, and around 12 per cent (nearly 1,400 units) is likely to be completed in less than a year. Hence, nearly 6,800 units ( Rs 60 per cent) of the total supply will be pumped into Gachibowli in less than two years.

Residential property prices in Gachibowli have risen linearly over the past two years, with the average price in the fourth quarter of 2017 being Rs 4,600 per sq ft. Though there have been many new launches in the past few years, prices have still appreciated by around 7 per cent in the past 12 months.

The writer is head-research, ANAROCK Property Consultants