Hyderabad’s real estate market is on a roll in recent times and political stability coupled with pro-active Government measures have contributed to this growth. Demand has gone up considerably for homes not just in Hyderabad but also along its peripheries and outskirts. People are migrating to the city in large numbers for employment and this is naturally keeping the housing market ticking. The city is also witnessing a major spurt of infrastructural growth and progress. The Metro expansion, widening of roads and other physical infrastructure development have contributed towards further growth of the realty market.
Hyderabad has one of the biggest and most flourishing IT and ITeS sectors in the country and this sector is contributing towards sizable housing demand in tandem with biotechnology, pharmaceuticals, start-ups and more. Several top MNCs and other conglomerates are now choosing to set up base in Hyderabad and the growth of the IT corridors in and around the city have also contributed towards the development of residential housing hotspots in several key locations. What is also drawing investors is the steady growth of the commercial realty market here which also rubs off rather well on the residential segment. Additionally, prices of property are comparatively lower in Hyderabad as compared to several other metropolises in the country. Several premium projects are being developed throughout the city including Incor One City, Incor VB City and NCC Urban One among others. Now, the housing market is set to get another major boost with a new business park announced by GMR.
GMR Business Park to be mega development in Hyderabad
GMR’s announcement of its upcoming business park has definitely contributed to oodles of optimism amongst real estate industry watchers. Here are some of the key points worth noting in this regard:
- GMR Infrastructure Limited is reportedly planning an investment of approximately Rs. 350 crore for establishing its first office park in Hyderabad.
- This may span a whopping 1 million sq. ft. and more and may be developed over the next 3-4 years as per reports.
- This is a part of the GMR Group’s bigger blueprints for monetizing its sizable land banks.
- The Group, which is based in New Delhi, has been seeking to monetize many of its non-core company assets which include lucrative land parcels.
- These measures are being undertaken to lower steadily increasing company debt as per reports.
- The business park will thus cover more than whopping 7 acres and will be situated strategically near the Rajiv Gandhi International Airport in Hyderabad.
- This project will be a part of the upcoming GMR Airport City that has already been planned by the Group.
- GMR Group is already in charge of operating the Hyderabad and New Delhi International Airports while possessing other infrastructure ventures in the country.
- As of the 31st of March, 2018, the overall debt for the GMR Group touched approximately Rs. 20,000 crore. Post investment of approximately Rs. 8,000 crore by the Tata Group and a couple of foreign investment entities into its airport businesses, the overall debt levels will come down to around Rs. 12,000 crore.
- This new business park will help the Group monetize this land parcel while creating a sustainable revenue source for the future, banking on Hyderabad’s rapidly progressing IT and ITeS sectors and steady demand for commercial and office spaces in the city.
- With the airport included into the portfolio, GMR Airport Land Development which is a GMR Infrastructure subsidiary, owns approximately 5,000 acres in Hyderabad alone.
What you can expect at this project
- GMR Airport City will be a real estate project spanning 1,500 acres in all and will transform the zones near and adjacent to the airport. This development will encompass several retail spaces, logistics, hotels and healthcare, entertainment and educational facilities.
- The 7 acre business park will comprise of a total of 5-6 towers and every tower will cover a whopping 2.4 lakh sq. ft.
- The development will be taking place in a couple of phases over a period of 3-4 years as per reports.
- This will naturally depend on the rising demand for commercial spaces in surrounding zones as per company officials.
- 350 crore will be deployed for the development of this new business park and this will come from internal accruals and debt alike.
- This is one of the first initiatives taken by the GMR Group to monetize and tap its vast land bank in Hyderabad. The Airport City and business park will be built by the 100% subsidiary owned by GMR Hyderabad International Airport Limited which is GMR Hyderabad Aerotropolis.
The GMR Group believes that a key challenge is the common perception amongst residents of Hyderabad about the Airport being too distant from the main city. This perception is set to change rapidly over the next few years and these developments will lead to a major real estate boost for the entire region and surrounding areas alike. The completion of the Airport City and the business park will make this zone a hotspot for both commercial and residential growth as per several experts.
In close proximity to this office park, GMR has also planned a logistics and warehousing park that will cover a whopping 120 acres along with a retail project across 19 acres. These projects will naturally transform the entire region in the near future as per reports. The company is still working on the blueprint for the retail zone while it has inked the MoU (Memorandum of Understanding) with E-Shang Redwood or ESR which is based in Singapore, with regard to the development of the logistics park. The first of the 5-6 towers at the project may be ready by the end of the year itself as per reports. This business park will emphasize on drawing more IT and ITeS players, technology companies and other businesses not just from India but worldwide with infrastructure tailored to suit all their needs.
This park will not be a competing development when it comes to the Cyberabad commercial district or HICC and will be offering only alternatives to companies as per GMR officials. The business park will be using innovative, new-age and eco-friendly green technologies for its development in tandem with offering new-generation high-quality digital infrastructure and other facilities. The retail park being planned will integrate movie theatres and shopping malls while the entertainment zone nearby will be a hotspot for employees working here.