In older times, rivers were called the cradles of civilization, with many communities initially settling near rivers becoming full-fledged habitations, the Indus Valley Civilization and Egyptian Civilization being prime examples of the same. In modern times, one can say that roads have taken up the old role of rivers. The construction of roads bring the promise of better connectivity and improved infrastructure, which leads to a number of settlements coming up next to or near the new roads. The Outer Ring Road (ORR) in the city of Hyderabad illustrates this phenomenon.
The Hyderabad Outer Ring Road is an 8-laned road, covering a distance of 158 km, connecting the outer suburbs of Hyderabad. Built to decongest the crowded city roads by providing an alternative and faster route to traffic wishing to either avoid the city or reach destinations such as the Hyderabad Airport faster, this expressway has not only come as a boon to customers but has spurred development along its entire stretch. In this article, we assess how this road has impacted the real estate sector in Hyderabad, particularly along its western stretch passing near the city’s main growth corridors.
Outer Ring Road: Location & Connectivity
The Hyderabad Outer Ring Road circles the city and connects all major highways leading to and from it. This allows road users to get from one place to another in quick time, after payment of the appropriate toll. A major benefit of this road is that it connects the major localities of western Hyderabad, which are seeing the greatest real estate growth such as Hitec City, Gachibowli, Manikonda, APPA Junction and Kokapet to the Rajiv Gandhi International Airport in Shamshabad, which is next to the ORR, with the commuting time over this 30-35 km stretch likely to be no greater than around 35-45 minutes.
For inner city travel, one can get off the Outer Ring Road at any of the junctions, which is nearest and take the appropriate road or take the toll-free service road. Rather unsurprisingly, the ORR has helped expand the boundaries of the city, with most new real estate projects (both residential and commercial) coming up around it. Many places, which were little more than villages less than a decade ago, such as Shamirpet, Kokapet, Narsingi and Puppalaguda are now seeing massive construction activity to cater to the increased demand due to the ORR’s proximity to the major IT corridors such as Raheja Mindspace IT Park, Financial District, Cyber Gateway, Cyber Towers and DivyaSree NSL Orion, all of which are within 5-8 km from the ORR. The upcoming Hyderabad Metro project is intra-city connectivity further, complementing this road.
Outer Ring Road: Social Conveniences
The Outer Ring Road has attracted plenty of habitation along both sides, which in turn has attracted many conveniences to benefit residents of these new complexes. If one focuses on the western part of this highway, one can see how service providers have established themselves in all upcoming locations such as Kokapet, Nanakramguda and APPA Junction to benefit from the housing boom.
To cater to the children of IT professionals, a number of highly rated schools such as Delhi Public School and Oakridge International School in Manikonda, Phoenix Greens International School and Rockwell International School in Kokapet, and Don Bosco School and T.I.M.E. School near APPA Junction have come up. Medical care facilities, however, still show a bias towards the more developed portions, with big names such as Continental Hospital, Max Cure Hospital and Care Hospital largely present in Gachibowli and Hitec City, though there are a few others such as Shadan Hospital near APPA Junction.
One major positive of the ORR is the excellent connectivity it provides residents and visitors alike to popular destinations such as Osman Sagar Lake, Chilkur Balaji Temple and Ramoji Film City. For a resident of a complex near the ORR, he/she is saved the hassle of navigating the chaotic city traffic and can get to and from their outing spot in double quick time.
Outer Ring Road: Residential Profile
Considering the long span of the ORR, it is not possible to make any generalizations regarding the residential unit profile, which is primarily individual area specific. For instance, while some areas such as Kokapet and Gachibowli are primarily seeing high rise apartment constructions, others such as APPA Junction have both villa and apartment projects. While some projects cater to the crème de la crème of the city, others cater to the economical section of home buyers.
The ORR has attracted major developers with a significant presence and noted track record such as INCOR, Aparna, My Home, Rajapushpa and Prestige, who have come up with some of their highly rated projects around here. For home buyers, who value quality and timeliness of delivery, the options are aplenty. The property prices too show a significant variation, both with regards to area as well as developer. While the average base price of a multistorey apartment in Puppalaguda is ~Rs. 3,000/sq. ft., it is ~Rs. 3500 in APPA Junction, ~Rs. 4000 in Kokapet/Gandipet and ~Rs. 5000 near Gachibowli. Variations from developer to developer are even greater, so a prospective home buyer should check directly with the developer in all cases.
Outer Ring Road: Great opportunities for investors
Due to a combination of the Outer Ring Road’s location, proximity to the airport as well as the major IT hub of Hyderabad and the vast amount of land available for development, the building blocks are in place for a real estate boom. For a discerning real estate investor, it would be advisable to take advantage of the significant variance of land prices between locations and projects and invest wisely, to get the benefit of the expected sharp appreciation in property rates here, particularly if one considers the ever-increasing demand for both commercial and residential real estate as well as the infrastructural developments expected to come up.
Outer Ring Road: Upcoming housing projects
My Home Avatar is an upcoming apartment project by My Home Constructions Pvt. Ltd. in Puppalaguda next to the Outer Ring Road. Scheduled to come up by 2020, this project offers 2 BHK and 3 BHK apartments, with a total of 2800 units in 10 towers of 31 storeys each. Among the amenities provided to residents will be basketball courts, fitness stations and a clubhouse containing a library, crèche and a multipurpose hall.
In a similar vein is SMR Vinay Harmony County by SMR Builders Pvt. Ltd. near APPA Junction. Spread over a large 50 acre land parcel, this project comprises 2 BHK and 3 BHK apartments of varying configurations, with the first of 3 phases due to be handed over by May 2017. Residents will be provided amenities such as a yoga/meditation hall, banquet hall and tennis and shuttle (badminton) courts.
Located near it is Incor’s PBEL City. One of the landmark projects in this part of Hyderabad, it offers smart, comfortable homes for its smart residents. This self-sustaining township boasts of the largest sewage treatment plant in a residential complex, which is recycled as well as a large 40,000 sq. ft. clubhouse, ‘The Square’, which has a saloon, spa, crèche and a large air-conditioned gym, with a lot more on the way.
Among the villa projects, one of the most notable ones is Mantri Euphoria by Mantri Developers. Built on a Balinese theme, this project contains 151 triplex luxury villas, boasting of large terraces, spacious rooms and space for a home office/study. The amenities for residents include a swimming pool, meditation lawn, amphitheatre and badminton court.
The Outer Ring Road has clearly been a major contributor towards the emergence of Hyderabad as a major residential and commercial center. Being in a sweet spot of good connectivity to the city and airport, numerous social amenities and vast land availability, it offers good opportunities for end users and investors alike. While most developments have been along its western corridor, its northern and eastern corridors too can be expected to carry on the growth momentum in years to come.