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INSITE REPORT 2019 April-June

99acres ’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : HYDERABAD 3

From CBO’s Desk

While the market showed some green shoots of recovery in the form of improved enquiries and sales volume this quarter, new project launches took a backseat owing to General Elections. The affordable Contents and mid-income housing segments strengthened amidst government initiatives and developers’ realignment of product-mix. The average weighted prices of residential apartments across the top eight From CBO’s Desk Maneesh Upadhyaya Chief Business Officer metros witnessed slight variations. Hyderabad and Bangalore, yet CBO’s perspective on current 03 again, emerged as the only two metros posting growth in property market 99acres.com ‘asks’, albeit by a marginal one percent, each, QoQ.

National Outlook After several quarters, the demand for under-construction properties 04 Snapshot of real estate ambience in Pune, Hyderabad and Ahmedabad grew by 3-5 percent, each. across top 8 metro cities Interestingly, 80 percent of this demand is for units priced within Rs 60 lakh. Supply of new and resale apartments also improved by Market Indicators 1-3 percent each in Bangalore, Chennai, Hyderabad and Ahmedabad. 05 Changes in capital rates and inventory The demand-supply equation in various budget categories still status QoQ; and rental values YoY remains disproportionate. Delhi NCR, Bangalore and Mumbai cumulatively report a 50 percent shortfall of houses in the Market Movers affordable and mid-housing segments. News that impacted Hyderabad’s 06 realty market in Apr-Jun 2019 The industry now awaits inclusion of Input Tax Credit (ITC) in Goods and Services 99acres Outlook Tax (GST) bracket, further cuts in repo Methodology rate to improve home-ownership 07 99acres’ perspective on current market The Insite Report by 99acres.com captures appetite and reduction in unsold the quarterly capital trends and the annual inventory, which currently Hyderabad rental analysis of residential apartments stands at around 8 lakh 08 Key highlights - Hyderabad’s capital in key real estate markets – Delhi NCR, Mumbai in top eight metros. and rental market in Apr-Jun 2019 Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Annexures Ahmedabad. In order to assess the prevailing sentiment, the report delves deep into demand 10 and supply of properties across varied budget segments and occupancy stages. While demand is a function of queries received, supply is based on property listings posted on 99acres.com in Apr-Jun 2019. 99acres India’s No.1 Property Portal INSITE : HYDERABAD 5 MARKET INDICATORS

DELHI NCR

NATIONAL OUTLOOK

HOME BUYING SENTIMENT KOLKATA Reduced GST rates coupled with stabilised property prices across metros AHMEDABAD kept home buying sentiment buoyant in Apr-Jun 2019. Low-cost housing units ruled the roost and properties priced within Rs 50 lakh posted maximum enquiries and sales conversion. Demand for under-construction units improved as States undertook stringent actions under RERA. MUMBAI

PROPERTY PRICES PUNE Average weighted property prices remained under pressure despite improvement in sales volume. Barring Hyderabad and Bangalore, which HYDERABAD reported a marginal one percent uptick in property prices, each, all metros saw prices maintaining status quo, QoQ. The market remained marred by the uncertainty posed by the ongoing General Elections and piling housing stock.

RENTAL LANDSCAPE For yet another quarter, the rental market continued to benefit due to the BANGALORE CHENNAI Capital Values cautious buyer stance. With a four percent hike in average rentals, YoY, the Rental Values IT/ITeS-driven cities - Pune and Hyderabad, emerged as the top performers on the rental graph. Other cities averaged at a 2-3 percent uptick in rental Supply ‘asks’ in Apr-Jun 2019 vis-à-vis the same quarter last year. Increase by 2-4 percent Increase by 0-1 percent SUPPLY Status quo General Elections, liquidity crunch following the NBFC crisis and ambiguities Decrease by 0-1 percent pertaining to Input Tax Credit (ITC) under the revised GST regime kept new supply under stress. Developers’ focus on offloading existing stock led to a Decrease by 2-4 percent reduction in the total saleable stock across cities. The average time to offload residential inventory, as in Apr-Jun 2019, stands at around 30 months. * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com 99acres India’s No.1 Property Portal INSITE : HYDERABAD 7

99ACRES OUTLOOK Market Movers Backed by robust office leasing activities and competitive housing prices, Hyderabad continued to dominate the realty charts in Apr-Jun 2019. The city TRERA registers just over 100 Water woes to end in Greater saw a quarterly increase of two percent in the total housing supply priced within projects from Hyderabad Hyderabad Rs 40 lakh. More than 90 percent of the new supply was launched along the IT corridor alone – the -Financial District- belt. Maximum Till now, a total of 121 ongoing projects in The State government inaugurated the property registrations, too, were reported from localities such as Gachibowli, Hyderabad have been registered with the Kaleshwaram Lift Irrigation Project (KLIP) , , , Financial District, Nallagandla, , Real Estate Regulatory Authority worth Rs 80,000 crore, which will supply Guttala Kothaguda, , Chandanagar, , and Madinaguda. (TRERA). A total of 936 projects have been 40 TMC of water to the ambitious Mission However, slow-paced registration of new real estate projects under Telangana approved by the Authority across the State. Bhagiratha drinking water supply project. The RERA restricted the growth of housing supply, which has far been outweighed by The slow pace of RERA registration is project will also supply drinking water to about improving demand in the city, especially in the affordable housing segment. Out of impacting new residential supply in the city. one crore residents of Greater Hyderabad. 936 approved projects in the State, only 121 projects are located in Hyderabad. Metro expansion on the cards Hyderabad emerges as a leader in Hyderabad, like other metros, also reported an improvement in the demand for Rail Limited (HMRL) is office leasing under-construction properties in Apr-Jun 2019, thanks to revised GST rates. The planning to extend the -HITEC City With office leasing activities touching popularity of such units went north by three percent in the quarter, against their corridor till Raidurg. The planned route 11 million sq ft, Hyderabad emerged as demand recorded in Jan-Mar 2019. is expected to become operational by the most active commercial market in August this year. the first two quarters of 2019. Small Among top metro cities, Hyderabad reported the maximum number of new and medium-sized transactions launches with 3,026 units in 2019. Unsold inventory, too, dipped in this quarter City to increase its commercial accounted for a major share considering a higher number of property registrations made this year. Extension footprint with another Business Park in the total leasing activity. of Ameerpet-HITEC City metro corridor to Raidurg, the launch of Kaleshwaram Lift Hyderabad will see the addition of another Irrigation project and proposal to scrap GO No 111 norms are expected to boost real 1 million sq ft of commercial office space estate activities in and around the city in the ensuing quarters. in a business park established by GMR Infrastructure at a cost of Rs 350 crore. Each of the five towers in the project would span Price movement in key micro-markets across 2.4 lakh sq ft. The consistent inflow of LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE investment in commercial real estate across Hyderabad has led to a spike in commercial 3,700-4,600 3% 8% land rates by 30 percent. Commercial projects 2,900-3,500 1% 4% attract immigrants to the city, eventually Miyapur 3,700-4,600 3% 8% improving housing demand. Gachibowli 5,000-6,100 3% 9% Kondapur 4,900-5,800 3% 7% Kukatpally 4,100-5,500 1% 8% Pragati Nagar 3,100-3,700 1% 5% Chandanagar 3,600-4,800 -3% 8% Beeramguda 2,600-3,100 2% 3% Nallagandla 4,900-5,700 4% 6%

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com in the current quarter 99acres India’s No.1 Property Portal INSITE : HYDERABAD 9

HYDERABAD

Rampant development in KEY HIGHLIGHTS SUPPLY OF infrastructure and high office APARTMENTS leasing activities cheered Similar to the previous quarter, Nallagandla witnessed a four percent to the same tenure last year. On the other hand, witnessed hike in the average capital prices, QoQ, owing to its continued popularity 13 percent appreciation in the same, highlighting a rise in demand for the Hyderabad’s real estate market UC RTM DEMAND UC RTM SUPPLY in the Apr-Jun quarter. Average among tech professionals working in Gachibowli and HITEC City. peripheral locations as future housing destinations. weighted prices of residential Hafeezpet, too, recorded a four percent appreciation in the average With over 50 percent of the overall housing demand in the city, affordable apartments went up by a marginal capital ‘asks’, QoQ. Due to its proximity to Kukatpally, Madhapur residential segment (within Rs 40 lakh) witnessed a demand-supply one percent during the period. and Miyapur, the locality is gradually becoming a popular locale for mismatch of 14 percent in this quarter. To augment the supply of affordable Suburbs located in proximity to the residential real estate. Apartments in Hafeezpet are currently priced around Rs 5,100 per sq ft. A few other locations which remained housing units in the city, the Greater Hyderabad Municipal Corporation IT hubs of Gachibowli, Kondapur, 80% / 20% popular amongst homebuyers include Manikonda, Nizampet, (GHMC) announced its plans to develop another one lakh 2 BHK homes for and Madhapur witnessed maximum 83% / 17% Economically Weaker Sections (EWS) in Greater Hyderabad limits. This might demand from end-users and Miyapur, Gachibowli, Kondapur, Kukatpally, and Pragati Nagar. 84% / 16%

help bridge the demand-supply gap in the category in future. 88% / 12% investors, alike. Chandanagar reported a dip of three percent in average property rates in the Apr-Jun 2019 quarter, against Jan-Mar 2019. A plethora of The infusion of investments in the commercial sector has boosted the rental illegal constructions in the region has been the primary reason behind market, too. The rental landscape in Hyderabad reported a four percent dwindling property rates in the locale. growth in the average rental values, YoY. Madhapur, Nizampet, , 38% 43% Gachibowli, and Kondapur remained the top performing rental markets in the 46% 31% Apr-Jun 2019 Jan-Mar 2019 Notably, in April and May 2019, the revenue generated from property city with over five percent rental appreciation, each, in the last one year. registrations in jumped by around 100 percent, compared * Graph depicts the availability of residential apart- ments wrt other property types in the city along with the distribution of under-construction and ready stock of residential apartments in respective micromarkets

8% 7% 7%

6% 6% 5% BUDGET-WISE SUPPLY OF PROPERTIES DEMAND SUPPLY

3% 3% 3% 3% 3% 3% 3% 2% 1% 1% 1% -4% -4% -5% 17% 15% 15% -4% -7% 8% -10% -13% -10% 0% 0% 0% -8% 6% 4% 26% 29% 26% 28% 31% 23% 27% 26% 23% 23% 23% 26% 21% 18% 15% 8% 22% 22% 18% 18% 21% 21% 25% 17% 6% 8% 19% 11% 11% 12% 13% 18% 19% 18%

Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Capital Rental 2019 2019 2018 2019 2019 2018 2019 2019 2018 2019 2019 2018 2019 2019 2018 Within Rs 25 Lakh Rs 25-40 Lakh Rs 40-60 Lakh Rs 60 Lakh to 1 Crore Rs 1 Crore and Above Banjara Hills Banjara Gachibowli Kondapur Miyapur City HITEC Manikonda Madhapur Nizampet Mehdipatnam Kukatpally

* %change represents quarterly capital movement and yearly rental movement * Graph depicts the fluctuation in supply wrt demand for residential properties in various budget categories 99acres India’s No.1 Property Portal INSITE : HYDERABAD 11 99acres Annexures India’s No.1 Property Portal FIND BEST OPTIONS TO FIND BEST OPTIONS TO CAPITAL VALUES RENTAL VALUES buy, sell, rent property Locality Apr-Jun 2019 Locality Apr-Jun 2019 BUY, SELL, RENT PROPERTY

Appa Junction 4700 Ameerpet 14 4100 Appa Junction 13 Banjara Hills 7500 Attapur 11 Beeramguda 2950 Banjara Hills 18 Begumpet 5500 Begumpet 14 3200 Chandanagar 14 Chandanagar 4650 Gachibowli 19 Price trends and Gachibowli 6000 Himayat Nagar 17 Mobile App property advice Gajulramaram 3660 HITEC City 20 on Android platform Hafeezpet 5100 19 and iOS Himayat Nagar 5730 Kondapur 16 HITEC City 6400 Kukatpally 15 Genuine Jubilee Hills 9000 Madhapur 19 Over 9 lakh listings with 4650 Madinaguda 13 property photographs Kondapur 5560 Manikonda 14 listings Kothaguda 6400 Mehdipatnam 11 Kukatpally 5500 Miyapur 12 Madhapur 6750 13 Madinaguda 4600 Nizampet 11 Manikonda 4550 16 More than Mehdipatnam 4300 12 1.6 lakh Miyapur 4550 projects 4000 Nallagandla 5300 Nanakramguda 6000 Narsingi 5100 Nizampet 3500 Pragati Nagar 3630 Sanath Nagar 6000 Shaikpet 6200 CONTACT US 4710 0120 4619723 Tolichowki 3800 Monday - Friday 9:30 AM to 6:30 PM IST Email: [email protected]

*All prices are per sq ft rates *Capital change depicts quarterly alterations in average ‘asks’ *Rental change depicts yearly alterations in average ‘asks’ CONTACT US 0120 4879400 Monday - Friday 9:30 AM to 6:30 PM IST Email: [email protected]