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INSITE REPORT 2019 April-June

99acres ’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : BANGALORE 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 Bangalore’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 inventory, which currently the quarterly capital trends and the annual stands at around 8 lakh Bangalore rental analysis of residential apartments 08 Key highlights - Bangalore’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 10 sentiment, the report delves deep into demand 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 : BANGALORE 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 : BANGALORE 7

99ACRES OUTLOOK Market Movers Property values in Bangalore reported a marginal one percent increase in Apr-Jun 2019 vs the previous quarter. The ongoing water crisis, and inordinate Over 900 RERA projects miss trash bins, digital information boards, and delays in metro land acquisition deals and completion of RERA-approved projects completion deadlines light-controlled crossing for pedestrians. impaired the market sentiment. Nevertheless, residential and commercial owners welcomed the announcement of unchanged property tax rates. About 948 real estate projects registered Also, elevated corridors covering about under RERA have missed their completion 88 km and 500 raised crosswalks at over Owing to the General Elections and the revised GST regime, the city witnessed a deadlines, severely marring the market 300 locations will be constructed across dip in the new launches in the studied quarter vis-à-vis Jan-Mar 2019. The demand sentiment. Developers of about 220 projects Bangalore to prevent accidents and reduce for the under-construction units also remained stagnant. On the supply side, have applied for an extension. The regulatory traffic congestion. Category A developers launched a few projects in the mid to premium segment, i.e. body has planned to serve notices to the Rs 60 lakh – Rs 1 crore. The quarter also saw a few re-launches in compliance with defaulters, who have failed to update the State proposes a five-year ban on RERA and building norms such as rainwater harvesting systems. information online. high-rise constructions The acute water shortage has led the State to Followed by a few micro-markets in East, North Bangalore witnessed the propose a five-year ban on the construction Phase 2 progresses maximum number of new project launches, enquiries and price appreciation. Price of high-rise buildings. In another move, in full swing competitiveness, improving metro connectivity and rise in large-scale commercial the water board has decided to reduce the After acquiring 1.05 lakh sq m of land developments contributed to the said growth. Buyer enquiries reported a clear Cauvery water supply for the residential from National Highways Authority of India inclination towards 2 BHK and 3 BHK units. Among all localities, Sarjapur Road in properties, which do not comply with (NHAI), the metro authority has issued land the East bagged the maximum number of site visits for 3 BHK housing units. acquisition notices to property owners for rainwater harvesting and sewage 36.3 km-long KR Puram – Kempegowda treatment system. Affordable homes still hold one-third share of the total demand. Supply in the International Airport metro corridor. In category, however, outweighs its demand by 20 percent. Resultantly, the city has addition, financial aid, worth Rs 2,255.14 crore, an inventory overhang of around 70,000 units. Hoping for high sales in the ensuing has accelerated the tunnelling work on the quarters, developers have rolled out attractive offers such as subvention schemes. 14 km-long underground stretch between Dairy Circle and Nagawara. Price movement in key micro-markets Infrastructure projects in the pipeline LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE The civic body has planned to equip 20 roads with features such as smart Whitefield 4,800-6,400 2% 4% signalling, intelligent parking systems, smart 3,600-4,800 0% 4% JP Nagar 5,500-5,700 0% 7% 5,200-5,400 -1% 0% Hennur 4,800-6,200 3% 2% 4,900-6,500 -2% 3% 5,100-6,500 0% 3% 3,900-4,600 -1% 3% 3,700-4,500 -1% 0% Raja Rajeshwari Nagar 4,000-4,800 2% 3%

* 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 : BANGALORE 9

BANGALORE Various infrastructure projects and KEY HIGHLIGHTS SUPPLY OF APARTMENTS expanding metro connectivity along UC RTM DEMAND UC RTM SUPPLY with the reduction in GST and home Bangalore’s realty recorded steady growth in the wake of new Localities such as , , Hegde Nagar and Sanjay loan rates helped the residential launches and consistent housing demand. Property prices, however, Nagar in the North; and Basavangudi, HSR Layout and Singasandra in the landscape of Bangalore to recover in remained under pressure. Sarjapur Road and bagged the East witnessed the maximum price appreciation to the tune of four percent, the second quarter of 2019, although maximum sale conversions on account of competitive prices, robust QoQ. The average capital values in JP Nagar remained stagnant in the studied marginally. Overall, the average social infrastructure and fresh inventory. quarter but bagged a seven percent growth, YoY, and currently stand around Rs 5,690 per sq ft.

weighted capital values registered 92% / 8% North and East Bangalore witnessed maximum new project launches a minimal hike of one percent in 92% / 8% and sale queries, especially in , , Hennur Road, The popular micro-markets of Whitefield, HSR Layout and Bellandur continued Apr-Jun 2019 vis-à-vis the quarter , Kadugodi, Marathahalli and Sarjapur Road. While proximity to witness price appreciation by 2-4 percent, QoQ, despite restrictions ending March 2019. The rental to the airport, SEZs and the Outer Ring Road (ORR) kept the northern imposed on Cauvery water supply. These localities have been relying entirely market, on the other hand, grew at localities popular among homebuyers, well-established infrastructure

on tank water for a few quarters now. 84% / 16% the rate of two percent, YoY. 85% / 15% along with proximity to IT hubs ensured steady demand from the eastern counterparts. The rental landscape continued on the growth trajectory owing to the expansion of the commercial market, improved connectivity and proximity to Ready homes remained the preferred choice with about 65 percent IT hubs. Rajaji Nagar in West Bangalore posted an eight percent surge in ‘ask’ 61% 40% 61% of the demand lying within Rs 60 lakh budget segment. The gap of rates in Apr-Jun 2019 vs the same quarter last year. The localities of North 41% 26 percent in the supply kept the price points under check. However, and East zones such as Doddanekundi, Malleshwaram, Mahadevpura and Apr-Jun 2019 Jan-Mar 2019 developers continued to launch new projects in the mid to premium Yeshwanthpur, too, remained popular among the tenant community, clocking * Graph depicts the availability of residential apartments segment, widening the demand-supply disparity in the city. an eight percent hike in lease rates, YoY. wrt other property types, QoQ, along with the distribution of under-construction and ready stock

8% BUDGET-WISE SUPPLY OF PROPERTIES 7% 6% DEMAND SUPPLY

38%

5% 5% 21% 20% 19% 37% -1% 35% 3% 3% 3% -6% -5% 28% 30% 29% 28% 30 % 32% 3% -19%

1% -20% 2% 1%

2% -19%

2% 0%

5% 0% 0% 0% 0% 2% 16%

0% 17% 16% 0% -1% -1% 12% 11%

-2% 8%

11% 11% 11% 11% 17% 16% 19% 23% 23% 27% 10% 18% 18% 16% 7% 8% 9%

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 2019 2019 2018 2019 2019 2018 2019 2019 2018 2019 2019 2018 2019 2019 2018 Within Rs 40 Lakh Rs 40-60 Lakh Rs 60 Lakh - Rs 1 Crore Rs 1-2 Crore Rs 2 Crore and Above

Capital Rental Hennur Hebbal Whitefield Thanisandra City Electronic Bellandur JP Nagar Yelahanka Yeshwanthpur Marathahalli

* %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 : BANGALORE 11

Annexures Annexures

CAPITAL VALUES RENTAL VALUES RENTAL VALUES

Locality Apr-Jun 2019 Locality Apr-Jun 2019 Locality Apr-Jun 2019 Locality Apr-Jun 2019

Akshaya Nagar 5260 Jayanagar 11000 AECS Layout 20 Kadubeesanahalli 22 6350 JP Nagar 5690 Akshaya Nagar 14 Kadugodi 16 5650 Kadugodi 4450 15 Kaggadasapura 17 Bannerghatta 5540 Kaggadasapura 4360 Banashankari 17 12 Basavangudi 10400 Kasavanhalli 5200 Banaswadi 17 Kodihalli 20 Begur 4539 Kengeri 4200 Basavangudi 21 27 Bellandur 6360 Koramangala 10170 Begur 15 KR Puram 15 Benson Town 9600 KR Puram 4590 Bellandur 22 Kumaraswami Layout 15 Billekahalli 5310 Kudlu Gate 6600 17 20 Bommanahalli 4690 Kundalahalli 5700 12 Mahadevpura 21 Bommasandra 2960 Mahadevpura 5965 19 Malleshwaram 28 Brookefield 6000 Malleshwaram 12000 BTM Layout 18 Marathahalli 21 BTM Layout 5950 Marathahalli 6230 24 15 Budigere 5060 4700 Cox Town 23 19 Cooke Town 8800 Nagavara 6500 CV Raman Nagar 18 Nagarbhavi 14 CV Raman Nagar 6630 Panathur 5900 Doddanekundi 20 Nagavara 16 Dodda Nekkundi 5175 Raja Rajeshwari Nagar 4760 Doddathoguru 15 Panathur 21 Doddathoguru 3760 Rajaji Nagar 12000 27 RT Nagar 15 Electronic City 4620 4330 Electronic City 16 Raja Rajeshwari Nagar 13 Frazer Town 9400 RT Nagar 5540 Frazer Town 25 Rajaji Nagar 21 4700 Sahakara Nagar 6360 Gottigere 12 Ramamurthy Nagar 14 Gunjur 4700 Sanjay Nagar 7400 HBR Layout 19 30 Harlur 6300 Singasandra 4400 Hebbal 16 Sahakara Nagar 17 HBR Layout 5300 Subramanyapura 4750 Hennur 16 Sarjapur 15 Hebbal 7720 TC Palaya 5300 19 Singasandra 15 Hegde Nagar 5600 Thanisandra 5730 Agara 14 Subramanyapura 13 Hennur 5500 Uttarahalli 4450 Hormavu 15 TC Palaya 13 Hoodi 6000 Varthur 5100 HSR Layout 21 Thanisandra 17 Horamavu Agara 4390 Vidyaranyapura 5430 15 24 Hormavu 4450 Vijayanagar 5600 Indira Nagar 26 Uttarahalli 12 HSR Layout 6400 Whitefield 5800 ITPL 18 Vidyaranyapura 13 Hulimavu 5200 Yelahanka 5200 Jakkur 15 Vijayanagar 17 Indira Nagar 10120 Yeshwanthpur 8040 16 Whitefield 20 Jakkur 5530 Jayanagar 22 Yelahanka 15 Jalahalli 5700 JP Nagar 18 Yeshwanthpur 22

*All prices are per sq ft rates *Capital change depicts quarterly alterations in average ‘asks’ *Rental change depicts yearly alterations in average ‘asks’ *All prices are per sq ft rates *Capital change depicts quarterly alterations in average ‘asks’ *Rental change depicts yearly alterations in average ‘asks’ 99acres India’s No.1 Property Portal FIND BEST OPTIONS TO FIND BEST OPTIONS TO BUY, SELL, RENT PROPERTY buy, sell, rent property

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