www.99acres.com

HYDERABAD RESIDENTIAL MARKET UPDATE JULY-SEPTEMBER 2019

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

FROM CBO’S DESK

With the news of an impending provide financing to the many stalled economic slowdown clouding the affordable and mid-income housing market, end-user and investor activity projects in the country cheered plunged evidently in residential real the market. The Government will estate in Jul-Sep 2019. This clubbed contribute Rs 10,000 crore, which with multiple insolvency proceedings is anticipated to benefit around and the on-going financial crunch that 350,000 housing units. Further, most developers are struggling with consecutive repo rate cuts and the kept overall sentiment submissive. mandate around repo rate linked Average weighted prices of residential home loans are seen as housing apartments witnessed meager demand lifters. The impact of alterations quarter on quarter, barring these policy announcements will and Ahmedabad. Rentals, be more evident in the ensuing too, grew insignificantly in the last one festive quarters. year. An inventory overhang of 10 lakh units along with 5.6 lakh delayed homes across the country kept price points under check. On the supply front, the top eight metros saw the launch of around 486 housing projects in Jul-Sep 2019, about 30 percent down from Apr-Jun 2019.

While the quarter did not have many laurels to talk about, the Finance Maneesh Upadhyaya Minister’s announcement regarding Chief Business Officer the creation of a special fund to 99acres.com NATIONAL MARKET OUTLOOK INDICATORS

Capital Values Rental Values Supply

HOME BUYING SENTIMENT Home buying sentiment remained weak due to developer defaults and the NBFC crisis, which dried up funding and slowed the completion of already delayed projects. Around 5.6 lakh residential projects are reportedly stalled across the country. Developers, nevertheless, anticipate the festive DELHI NCR season to lift housing demand up.

PROPERTY PRICES Metro cities witnessed marginal upticks in property prices. KOLKATA Hyderabad and Ahmedabad took lead with a two percent AHMEDABAD surge, QoQ. A few good deals in certain popular housing hubs contributed to the said price hike. The industry does not foresee any major deviations in the prices of new or MUMBAI ready residential stock in the ensuing quarters, too. PUNE

HYDERABAD RENTAL LANDSCAPE Rental ‘asks’ grew by an average of 2-3 percent across metros, YoY. The segment is expected to benefit from the prolonged caution exercised by homebuyers. Rental hubs along transit corridors are expected to see better demand and surging ‘rates’ in the next couple of quarters. Co-living is fast emerging BANGALORE CHENNAI as a trend, especially in Bangalore, Hyderabad and Mumbai.

SUPPLY Metro cities witnessed the launch of around 486 projects in Jul-Sep 2019, a 33 percent dip versus Apr-Jun 2019. Economic slowdown and liquidity crunch forced builders to hold back new launches. Government’s efforts to boost the Public Sector 99acres Banks and NBFCs by injecting funds worth Rs 1 lakh crore may India’s No.1 Property Portal propel housing supply in the forthcoming quarters. * 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 Jul-Sep 2019 QoQ % Change YoY % Change 4,100 - 4,800 2% 10% Demand Supply 3,260 - 3,720 4% 10% 3,610 - 4,860 3% 8% 5,220 - 6,670 2% 11% 5,480 - 6,370 4% 9% 4,660 - 5,650 1% 9% * 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 Pragati Nagar 3,310 - 3,820 3% 9% Chandanagar 4,270 - 4,990 5% 10% Beeramguda 2,890 - 3,270 3% 11% Nallagandla 4,930 - 5,560 2% 10%

* 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

Affordable 53% Housing 43% 99ACRES’ OUTLOOK

Even as other metro cities witnessed a slump in real estate transactions, Hyderabad registered steady growth in Jul-Sep 2019, too, on the back of numerous ongoing infrastructure projects, political stability, and policy reforms. Private Equity investments in the city went 33% north by more than five times over the last 4-5 years, which have resulted in around a 10 percent increase in Mid-income residential project launches, YoY. More than half of the Housing total residential demand in the city was captured for apartments priced within Rs 40 lakh. The luxury housing category reported oversupply against subdued demand.

A healthy jump in the absorption of office spaces, 35% primarily driven by the growth in the BFSI and IT/ITeS sectors, pushed the housing demand up in the city, exponentially. In H1 2019, office space leasing quadrupled compared to the leasing activity reported 14% during the same period in 2018.

The annual commercial leasing in Hyderabad has touched 9 million sq ft now. Subsequently, new residential launches have risen, too, to cater to the migrant workforce coming into the city. Planned Luxury 22% infrastructure projects such as metro expansion, the Housing Outer Ring Road (ORR), and a high-speed metro project connecting Hyderabad airport to have directed investor interest towards large-scale residential projects across the city.

Demand Supply

* Graph depicts demand and supply of residential inventory across budget segments in the studied quarter INSITE : Hyderabad 9 KEY HIGHLIGHTS Hyderabad’s housing market continued to register growth with a two percent uptick in capital prices, QoQ. State initiatives such as single-window clearance for building permits and introduction of a penalty clause for officials delaying legitimate building projects benefitted the city’s realty landscape. The proposal to establish new IT parks to decongest and Gachibowli, and the proposed metro corridor to airport drove buyers to the southern CAPITAL & locales of Rajendranagar, , and Budwel. Developers eyed the eastern and northern quadrants of RENTAL the city. Resultantly, Uppal and a few other eastern locales, emerged as the realtors’ best bets. Here, the average 9% 9% 9% property prices have almost doubled in the last 7-8 years. Property prices in LB Nagar jumped up to 10 percent, YoY. Commencement of metro services and several IT companies in Pocharam, , , and fuelled residential demand and housing deals. As a result, land prices in some mirco-markets of East Hyderabad doubled 6% in the last one year. For instance, land rates in reached Rs 26 crore per acre this year, which were pegged 5% 5% at Rs 12 crore earlier.

4% 4% 4% The 158 km-long Outer Ring Road (ORR) acted as a catalyst of development by aiding the expansion of the city. The 3% 3% 3% network triggered residential development in localities such as Adibhatla, Ibrahimpatnam, Pedda , , 2% 2% 2% 2% , Gundlapochampally and Kompally. 2% 1% The city recorded an average rental appreciation of three

Banjara Hills 0% percent, QoQ. Areas in proximity to IT hubs such as

Gachibowli Kondapur Miyapur HITEC Manikonda Madhapur Nizampet Kukatpally Miyapur, Madhapur, , Kondapur, HITEC City and City Gachibowli posted a five percent growth, YoY.

Capital

Rental

-4%

* %change represents quarterly capital movement and yearly rental movement INSITE : Hyderabad 11 99acres 3% India’s No.1 Property Portal CONCLUDING KOLKATA REMARKS 4% DELHI NCR

Backed by robust office leasing activities and sound AHMEDABAD infrastructure plan, Hyderabad is expected to continue 8% dominating the realty charts in the ensuing quarters, too. Extension of the Ameerpet-HITEC City metro corridor to Raidurg, and the Outer Ring Road project have the full potential to stir up residential and industrial growth in the city. Notably, Hyderabad faces a wide demand-supply 37% disequilibrium, especially for houses priced within Rs 60 lakh. 10% MUMBAI With the launch of just 53 new housing projects in the studied CHENNAI quarter as against 77 in Apr-Jun 2019, the gap is expected to further widen unless the developer community adopts “right price-right size” strategy to plan their launches. 11% HYDERABAD

12% 15% BUDGET-WISE PUNE BANGALORE DEMAND & SUPPLY The data depicts share of new launches across metro cities in the studied quarter

17% 16% 37% 36% 26% 29% 24% 39% 40% 43% 46% 49% 55% 53% 56% 37% 31% 50% Affordable Housing 30% 75% 31% 39% 53% 41% Mid-income Housing 39% 35% 36% 39% Luxury Housing 26% 29% 33% 46% 45% 33% 30% 30% 18% -5% 24% 34% 22% 21% 19% 21% 14% 15% 15% 15% 7% -6% Demand Supply Demand Supply Demand Supply Demand Supply Demand Supply Demand Supply Demand Supply Demand Supply 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 Jul-Sep 2019 Locality Jul-Sep 2019 varied budget segments and occupancy stages. While demand

Appa Junction 4850 Ameerpet 13 is a function of queries received, supply is based on property Attapur 4260 Appa Junction 14 listings posted on 99acres.com in Jul-Sep 2019. 7190 Attapur 10 D S PS Beeramguda 3050 Banjara Hills 18 BUY SELL RENT PROPERTY 5300 Begumpet 14 3181 Chandanagar 14 Chandanagar 4900 Gachibowli 17 FIND BEST OPTIONS TO Gachibowli 6100 Himayat Nagar 16 Gajulramaram 3750 HITEC City 20 BUY, SELL, RENT PROPERTY 5109 17 Himayat Nagar 5940 Kondapur 15 HITEC City 6640 Kukatpally 15 Price trends and Mobile App property advice Jubilee Hills 10500 Madhapur 19 on Android platform 4830 Madinaguda 13 and iS Kondapur 5800 Manikonda 14 Kothaguda 6450 Mehdipatnam 11 enuine Kukatpally 5550 Miyapur 13 ver . lakh listings ith photographs Madhapur 6950 13 property listings Madinaguda 4721 Nizampet 11 Manikonda 4650 16 Mehdipatnam 4400 12 Miyapur 4700 4160 More than Nallagandla 5400 1.7 lakh 6277 projects Narsingi 5260 Nizampet 3650 Pragati Nagar 3740 Sanath Nagar 6171 Shaikpet 6440 4845 Tolichowki 3980 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 AM to PM S mail content99acres.com