M A R K E T B E AT Residential Q1 2020

Tepid start to Q1, project launches deferred New launches totalling up 2,900 units were recorded in Q1, marking a 35% q-o-q decline and a 40% reduction on an annual basis. Launches had NEW UNITS LAUNCHED (Q1 picked up in Q4 2019 and the momentum was expected to continue in Q1 2020 as well, but the COVID-19 pandemic has brought the residential 2,905 2020) market to a standstill. Several projects that had received final approvals and were gearing up for official launch at the end of February/March were put on hold and at this time have been deferred for an indefinite period. Few major developers such as My Home Group, Indis (Incor Group) and SHARE OF MID SEGMENT (Q1 Praneeth Group among others were active in Q1, together accounting for nearly 60% of new launches during the quarter. Mid segment projects 45% 2020) continue to dominate with a 45% share of new unit launches, with 30% share held by the high-end segment. New projects were largely concentrated in established residential catchments in the West & Northern corridors such as , , Narsingi and , - and . SHARE OF HIGH-END 30% SEGMENT (Q1 2020) Rental and capital values remain stable, market conditions will favour opportunistic buyers in the short term Capital values across the city largely remained stable after growing steadily over the past 12-18 months. Average quoted prices were indicating towards an upward trend early in the quarter, but with the COVID-19 situation evolving fast, the expected movement in prices did not last. On MARKET INDICATORS OVERALL similar lines, the impact of the ongoing pandemic was quick to slash early gains, in the rental housing market as well. The COVID-19 outbreak and Q1 2020 subsequent lockdown has stalled construction activity and caused a delay in project completions during the quarter. Given the impact on resource mobilization and sourcing of raw materials, besides a significant pullback in demand in the short term along with the prevailing liquidity crunch, we Y-O-Y 12-Months expect further delays in project completions across all segments over the next 6-9 months. Meanwhile, opportunistic buyers whose cash flows are Forecast Change intact may expect higher discounts from developers who are more focused on reducing inventory overhang while curtailing cash flow gaps.

New Launches Short term recovery unlikely, peripheral locations could remain under pressure in 2020-21 Given the broader economic impact and uncertainty prevailing currently with the COVID-19 outbreak is expected to dampen market sentiments at Units Sold least for the next 2-3 quarters. Weak affordability and subdued demand conditions are likely to prevail across the city. As such, peripheral locations, especially those beyond the ORR and away from established catchments having witnessed a 2X-3X growth in land values over the last 3-4 years could see a large impact in recovery. The prominent residential clusters near the IT and financial districts, those with ongoing Average Capital infrastructure developments and metro connectivity elsewhere in the city are likely to rebound sooner. Values (INR/sf) SIGNIFICANT PROJECTS LAUNCHED IN Q1 2020

BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE*(INR/SF)

APR – Pranav Town Square Bachupally Praneeth Group 528 4,800

indis Viva City Kondapur indis (Incor Group) 629 6,000

Tarkshya Kokapet My Home Group 660 6,300

Alekhya Bamboo Grove Alekhya Homes 40 5,700 M A R K E T B E AT HYDERABAD Residential Q1 2020

RENTAL VALUES AS OF Q1 2020 CAPITAL VALUES AS OF Q1 2020 AVERAGE QUOTED QoQ CHANGE YoY SHORT TERM Average Quoted Rate QoQ CHANGE YoY SHORT TERM SUBMARKET SUBMARKET RENT (IND/MONTH) (%) (%) OUTLOOK (INR/sf) (%) (%) OUTLOOK

High-end segment High-end segment 58,000-1,50,000 0% 0% Banjara Hills 8,200-12,200 0% 2% , 36,000-70,000 0% 1% Madhapur, Gachibowli 5,600-8,000 0% 5% Kukatpally 21,000-40,000 0% 2% Kukatpally 5,000-6,500 0% 3% Himayathnagar 20,000-36,000 0% 0% Mid segment Mid segment Madhapur, Gachibowli 4,500-5,700 0% 9% Banjara Hills 22,000-32,000 0% 4% Kukatpally 4,000-5,000 0% 8% Madhapur, Gachibowli 18,500-28,500 0% 3% Himayathnagar 4,000-4,700 0% 9% Kukatpally 15,000-23,000 0% 3% Miyapur 4,200 – 4,500 0% 20% Himayathnagar 13,500-18,000 0% 0%

SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q1 2020 Rohan Sharma BUILDING LOCATION DEVELOPER ESTD NO. OF UNITS EXPECTED COMPLETION Director, Research Services Adithya Athena Shaikpet Sri Aditya Homes Pvt Ltd 522 Q1 2023 +91 124 4695555 /[email protected]

Luxor park Kondapur Aparna Constructions 414 Q1 2023 Kapil Kanala Ramky One Astra Narsingi Ramky Group 282 Q4 2021 Associate Director, Research Services +91 40 40405555 /[email protected] cushmanwakefield.com SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q1 2020 BUILDING LOCATION DEVELOPER ESTD NO. OF UNITS UNIT SIZE A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Niharika Interlake Gachibowli Niharika Projects 165 1900-3000 Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for Sancia Radhey Constructions 80 3333 - 3600 real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other Data collated from primary and secondary resources. Estimations are subject to change services. * Rental and capital values have been depicted only for key submarkets ©2020 Cushman & Wakefield. All rights reserved. The information ** Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc. contained within this report is gathered from multiple sources believed The above values for high-end segment are for units typically of 1,200-3,000 sf to be reliable. The information may contain errors or omissions and is The above values for mid segment are for units typically of 800-1,400 sf presented without any warranty or representations as to its accuracy. ^Affordable housing has been defined as units with a carpet area of 60 sq.mt in metros / 90 sq.mt in non-metros and value up to INR 45 lakhs