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HYDERABAD RESIDENTIAL MARKET UPDATE OCTOBER-DECEMBER 2019

Market Sentiment INSITE 99acres ’s No.1 Property Portal

FROM CBO’S DESK

The year 2019 was testimony to nominal changes in top eight metros. the economic slowdown worsening The rental landscape had a merrier the already shaky housing sector tale to narrate with most metros of the country, which is still trying witnessing ‘asks’ going north between to come to terms with multiple two and four percent, YoY. policy reforms and funding crisis. Developers were seen resisting new The real estate industry awaits launches as the remnants of the Union Budget 2020-21 for pro-buyer NBFC crisis still trouble the sector at announcements to uplift housing large. The quarter Oct-Dec 2019 was demand and sales. no different, although it experienced certain green shoots of recovery in buyer sentiment following the announcement of certain financial measures by the Government. The creation of an Alternative Investment Fund (AIF) to help complete stalled residential projects and reduction in repo rates to make home loans cheaper top the list.

There were fewer residential launches in the last quarter of the year against Jul-Sep 2019. Responses and enquiries, too, experienced a Maneesh Upadhyaya downturn, QoQ. Average weighted Chief Business Officer property prices reported no or 99acres.com NATIONAL MARKET OUTLOOK INDICATORS

Capital Values Rental Values Supply

HOME BUYING SENTIMENT Homebuyers continued with their wait-and-watch strategy as the economy failed to pick-up the pace. Alternative Investment Funds worth Rs 25,000 crore cheered the stakeholders of stuck residential projects, but failed to push transactions in the short-term. Property sales plummeted by DELHI NCR 20 percent, QoQ, and stood at 55,000 units in Oct-Dec 2019.

PROPERTY PRICES Delhi NCR, Mumbai, Pune and Chennai did not witness any KOLKATA major deviations in average property ‘asks’, QoQ. Bangalore, AHMEDABAD , Kolkata and Ahmedabad witnessed prices going up by a marginal one percent. With an unsold stock of 6.55 lakh units across the top eight metro cities, any significant MUMBAI jump in prices is unlikely in the short-term. PUNE

HYDERABAD RENTAL LANDSCAPE Amid subdued home buying sentiment, the rental landscape registered notable growth, YoY. All metros, barring Delhi NCR and Pune, reported an annual uptick of three percent each in rental ‘asks’. While overweighing ready inventory restricted rental growth to two percent in Delhi NCR, the booming IT BANGALORE industry pushed rentals by four percent in Pune, YoY. CHENNAI

SUPPLY Muted sales and the ongoing NBFC crisis forced developers to refrain from launching new residential projects. Delhi NCR, Mumbai, Bangalore, Chennai and Kolkata reported a decline of 20-30 percent in new project additions, QoQ. An inventory 99acres of 4.58 lakh stalled units, too, encouraged developers to India’s No.1 Property Portal restrict new launches. * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com HYDERABAD’S REALTY AT A GLANCE

Property Rental Prices ‘Asks’

Price movement in key micro-markets

Localities Oct-Dec 2019 QoQ % Change YoY % Change 3,180 - 3,740 1% 6% Demand Supply 4,030 - 4,840 1% 9% 3,620 - 4,820 1% 7% Pragati Nagar 3,410 - 3,840 0% 7% 5,220 - 6,200 2% 9% Chandanagar 3,800 - 4,840 -3% -2% * Property prices represent quarterly change * Rental ‘asks’ represent yearly change * Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com 5,410 - 6,300 2% 10% 4,860 - 5,800 2% 8% Beeramguda 2,480 - 3,000 -5% 4% Nallagandla 5,010 - 5,820 3% 7%

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com

INSITE : Hyderabad 7 99acres DEMAND & SUPPLY India’s No.1 Property Portal DYNAMICS 99ACRES’ 17% OUTLOOK 15% The last quarter of 2019 witnessed multiple factors preventing Hyderabad’s real estate market from succumbing to the current economic slowdown. Connectivity upgrades including the commencement of HITEC City- metro route, the construction of 46% arterial roads and elevated corridors in and around IT 35% hubs of Gachibowli, HITEC City and improved 50% the city’s liveability quotient further. These clubbed with a reduction in the cement prices by Rs 10-35 per 50 kg and consistent influx of working population to the city augured well for the housing industry. The city recorded a cent percent jump in the annual commercial leasing, which stood at 9 million sq ft, trailing only behind 37% Bangalore with an average commercial leasing of around 13 million sq ft. Sales also witnessed a four percent rise, YoY, with around 17,000 units getting sold in 2019.

On the back of robust capital infusion in the commercial sector in Hyderabad, average property values went north, although marginally by a percent, QoQ.

The future, too, looks bright with government’s emphasis on decentralising the realty Demand Supply growth across all the zones. After implementing LEAP (Look East Policy), Hyderabad GRID (Growth In Affordable Housing Dispersion) code would propel the real estate activities (Within Rs 40 lakh) in southern and northern parts of the city. Several tax Mid-income Housing (Rs 40 lakh - Rs 1 crore) sops such as waiver of development fee and impact Luxury Housing fee allured developers to put up their realty projects in (Rs 1 crore and above) areas other than West Hyderabad. Areas such as Uppal, Pocharam, , , Usmannagar, and Budwel would reap maximum benefit.

* Graph depicts demand and supply of residential inventory across budget segments in the studied quarter INSITE : Hyderabad 9 KEY HIGHLIGHTS The year ended for Hyderabad with an improvement in sales volume over the previous year, owing to a limited number of new launches and consistent demand for housing units. The trend is expected to continue in the ensuing quarters unless the liquidity crisis faced by the developers eases. Areas such as Kukatpally, , Kondapur, Gachibowli, Raidurgam and remained at the centre of new supply in the city due to their proximity CAPITAL & to the IT hubs. Areas from Uppal to Bhuvanagiri and Warangal Highway are RENTAL expected to house maximum constructions in the coming months due to the operationalisation of the metro corridor from to HITEC City.

8% Like previous quarters, the IT corridor stretching from Madhapur to Gachibowli and the Financial District in 7% 7% 7% West Hyderabad ruled the roost. However, with the announcement of the GRID policy, investment queries 6% 6% doubled in South Hyderabad. Land parcels priced below Rs 10,000 per sq yards remained popular in Shankarpally, 5% Maheswaram, Srisailam Highway, and Kokapet.

4% Localities such as Kokapet, Tellapur, Nagole, and Nallagandla recorded an uptick of 3-4 percent, each, in the capital rates, in Oct-Dec 2019 vis-à-vis Jul-Sep 2019. The 2% 2% 2% 2% 2% rental market, however, showed an uptick of three percent in the ’ask’ rates, YoY. Small-sized apartments remained 1% 1% 1% popular among homebuyers and tenants in this quarter, too. , Madinaguda and HITEC City were some of 0% 0% 0% the prominent areas in the city which recorded a surge of HITEC City Kondapur Kukatpally Gachibowli Nizampet Manikonda Miyapur Chandanagar 8-9 percent in the average rentals, YoY.

Capital

Rental -3%

* %change represents quarterly capital movement and yearly rental movement INSITE : Hyderabad 11 99acres India’s No.1 Property Portal CONCLUDING NEW LAUNCHES

REMARKS 2% KOLKATA While average weighted property prices did not witness a steep rise in Hyderabad, sentiment remain positive throughout Oct-Dec 2019. 4% Government initiatives, proposed infrastructure plans - GRID and LEAP, DELHI NCR reasonable cost of living and robust investment in commercial and retail 8% segments are expected to reap healthy results for the realty market in CHENNAI future. The problem at hand, however, remains limited housing supply 29% against improving demand. While developers are playing on the back foot 9% MUMBAI due to liquidity constraints, the current inventory in the city will only take AHMEDABAD around three quarters to get completely disposed of. The challenge is an unheard one for other metros, which are battling due to humongous unsold inventory. 12% HYDERABAD

12% 24% BANGALORE PUNE BUDGET-WISE DEMAND SUPPLY The data depicts share of new launches across metro cities in the studied quarter

18% 16% 36% 36% 29% 29% 24% 40% 41% 46% 48% 49% 55% 50% 57% 37% 32% 52% 31% 76% 31% 51% 40% 40% Demand Supply 40% 37% 36% 38% 26% 28% Affordable Housing 35% 45% 44% 33% 31% Mid-income Housing 29% 18% -5% 24% 32% 17% 20% 19% 19% 15% 15% 14% Luxury Housing 15% 6% -6%

DELHI NCR MUMBAI BANGALORE PUNE CHENNAI HYDERABAD AHMEDABAD KOLKATA

INSITE : Hyderabad 13 * Graph depicts demand and supply of residential inventory across budget segments in top eight metro cities in the studied quarter METHODOLOGY ANNEXURES The Insite Report by 99acres.com captures the quarterly capital trends and the annual rental analysis of residential apartments in key real estate markets – Delhi NCR, Mumbai Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad. In order to assess the prevailing sentiment, the CAPITAL VALUES RENTAL VALUES report delves deep into demand and supply of properties across Locality Oct-Dec 2019 Locality Oct-Dec 2019 varied budget segments and occupancy stages. While demand

Appa Junction 4900 Ameerpet 14 is a function of queries received, supply is based on property 4400 Appa Junction 14 listings posted on 99acres.com in Oct-Dec 2019. Banjara Hills 7500 Attapur 10 D S PS Beeramguda 2900 Banjara Hills 18 BUY SELL RENT PROPERTY Begumpet 5425 Begumpet 15 3200 Chandanagar 14 Chandanagar 4750 Gachibowli 19 FIND BEST OPTIONS TO Gachibowli 6200 Himayat Nagar 15 Gajulramaram 3900 HITEC City 21 BUY, SELL, RENT PROPERTY 5150 19 Himayat Nagar 5900 Kondapur 16 HITEC City 6800 Kukatpally 15 Price trends and obile pp property advice Jubilee Hills 10100 Madhapur 20 on ndroid platorm Kokapet 5050 Madinaguda 13 and iS Kondapur 5900 Manikonda 15 Kukatpally 5648 13 enuine Madhapur 7150 Miyapur 12 ver lakh listings ith photographs Madinaguda 4850 12 property listings Manikonda 4695 Nizampet 11 Mehdipatnam 4350 15 Miyapur 4750 13 Nagole 4300 Nallagandla 5550 More than 6450 1.7 lakh Narsingi 5315 projects Nizampet 3700 Pragati Nagar 3750 Sanath Nagar 6300 Shaikpet 6550 Tellapur 5050 Tolichowki 3900 CONTACT US 0120 4879400 Monday - Friday 9:30 AM to 6:30 PM IST *All prices are per sq ft rates Email: [email protected] 15 CONTACT US 9 Monday - Friday 9 to P S mail content99acres.com