PropIndex | Magicbricks Apr-Jun 2020

Residential Market Insights Market Dynamics Government polices and builder incentives to assist the revival of residential market Parameters Hyderabad

After a staggering ~50% return in the last 5 years, the city's prices witnessed a momentary dip of 5.2% in Q2 2020 Demand+ -27% -24% due to the ongoing pandemic. The state government has taken some quick measures to support the falling demand Supply++ -43% -22% such as it dropped the plan to increase stamp duty and registration charges for the time being. To support the Price Index+++ -1.5% -5.2% sales, the developers started offering incentives such as no EMI until possession and gold vouchers to attract home Notes: buyers. We expect, more builders to follow suit and more such offers in the market in the coming quarter. According Above parameters represent QoQ change in Q2 2020 at to Magicbricks Research, Hyderabad real estate market has solid fundamentals. Government initiatives such as India and city level + change in the volume of property searches permits to construct a house through self-certification (built up area <675 sqft), decision to spend INR 50,000 Crore ++ change in the volume of active listings in the next five years for the development of Hyderabad Urban Agglomeration Area, and positive policy for IT/ITeS +++ change in the weighted average price sector would ensure the long term growth in the market. Source: Magicbricks Research

Ready to Move Price Index Key Developers based on active listings 6,000 "After a stellar rise of Aliens Group 50% in 5 years, the 5,000 Aparna Constructions ready-to-move property Incor Infrastructure t f

q prices fell by a s

4,000 SMR Holdings r e p significant 5.2% Lanco Hills Technology Park R N I in Q2 2020"

e 3,000 NCC Urban Infrastructure c i r P Provident Housing e g a

r 2,000 Lansum Etania Developers e

v 5 Year A Change Asrithas Group 1,000 YoY QoQ Pacifica Companies 4 5 6 7 8 9 0

1 1 1 1 1 1 2 54.7% 0.5% -5.2% 0 0 0 0 0 0 0

2 2 2 2 2 2 2 Note: The above table represents the top developers by Notes: share of active listings on Magicbricks website in Q2 2020 1. Ready to move price index represents the weighted average price of completed properties on Magicbricks website as on June 2020 2. The trend line represents the average prices of dominant asset class in each locality of the city. Source: Magicbricks Research Source: Magicbricks Research

Under Construction Price Index Key Projects

6,000 Project Name Locality "Under-construction Sharvani Heights Chandanagar 5,000 prices stagnate as Nebula Aavaas t

f developers resist price q s

r 4,000 Aliens Space Station

e reduction due to rising p

R Shiny Jewel N costs" I

e 3,000 c i Aparna Serene Park r P

e

g Silverline Casa a

r 2,000 e v 5 Year Casa Rouge Kondapur A 1,000 Change YoY QoQ My Home Avatar Narsingi 4 5 6 7 8 9 0

1 1 1 1 1 1 2 35.1% 2.4% -0.3%

0 0 0 0 0 0 0 Pacifica Hillcrest Gachibowli 2 2 2 2 2 2 2

Note: Note: 1. Under-construction price index represents the weighted average price of under-construction properties on Magicbricks website as on June 2020 The above table represents the top projects by consumer 2. The trend line represents the average prices of dominant asset class in each locality of the city. preference on Magicbricks website in Q2 2020 Source: Magicbricks Research Source: Magicbricks Research

Average changes in prices for localities in various price segments Key Trends to Watch Out

Price Bracket (INR per sqft) - Ongoing infrastructure projects such < 4000 4,000-5,000 5,000-6,000 > 6,000 as Expressway, Phase II 1.5% Metro, Bridge near Panjagutta, 0.9% conversion of 52 major junctions as "Significant price signal free zones, and road under bridge near Hitech City, are expected to decline of 4-6% in ease connectivity across the city -0.9% -1.3% ready-to-move properties - State government's 'Look East' policy across all to develop the eastern part of -3.6% price brackets" Hyderabad, gained traction and -4.1% -4.1% localities such as Uppal, Pocharam, , and Sagar Highway are -5.7% expected to see more real estate activity in the future. RM UC RM UC RM UC RM UC

Note: Above table represents the price changes for Ready to move (RM) and Under construction (UC) properties for dominant asset classes in each locality under various price buckets as on June 2020 Source: Magicbricks Research

© magicbricks.com Page 1 Demand Supply Analysis Hyderabad | Apr-Jun 2020

Infrastructure and IT development 2 and 3 BHKs dominate the city's landscape driving the residential market DEMAND SUPPLY 2 and 3 BHKs continued to witness most traction in Q2 2020 with 91% of the property searches. Above 3 BHK 1 BHK Above 3 BHK 1 BHK The supply side also managed to keep up with the 4% 6% 5% 3% demand in terms of BHK configurations. 3 BHK 38% - Some of the top IT companies such as Google, , , Facebook and Salesforce are 3 BHK setting up offices in Hyderabad and pushing 2 BHK demand for residential development in the city. 2 BHK 44% 48% 53% "The affordable housing trend

has continued in Q2 as well, with Notes: 1. Demand represents property searches on Magicbricks website during Q2 2020, segregated by Bedroom, Hall, Kitchen (BHK) configuration more than 50% consumers 2. Supply represents active listings on Magicbricks website during Q2 2020, segregated by BHK configuration Source: Magicbricks Research searching for 2 BHKs"

- Majority of the searches were for houses priced less than INR 5,000 per sqft, which correspond to Demand-supply match amongst all price buckets prime localities of , , Nizampet, Kollur, Uppal, , and . DEMAND Price buckets in INR per sqft SUPPLY Price buckets in INR per sqft The 'more than INR 6,000 per sqft' segment received just 20% of the consumer searches, even > 6,000 though almost 30% of the supply was attributed 19% > 6,000 to this segment, indicating buyer's aversion to 28% < 4,000 the premium segment in the ongoing crisis. < 4,000 34% 44% - Miyapur, Gachibowli, and Kukatpally continued to be the top 3 micro-markets due to proximity to 5,000-6,000 employment hubs, affordability, and good civic 13% amenities. 5,000-6,000 4,000-5,000 16% 4,000-5,000 23% 21%

. Notes: 1. Demand represents property searches on Magicbricks website during Q2 2020, segregated by price buckets 2. Supply represents active listings on Magicbricks website during Q2 2020, segregated by price buckets

Source: Magicbricks Research

Top Micromarkets by consumer Propensity of demand and supply in terms of searches and Demand/Supply Demand searches listings by localities

Micro-Market Price Range Rank Rank Q2-20 Q1-20

Miyapur 2150 - 5700 1 1 Gachibowli 3850 - 8600 2 2 Kukatpally 3800 - 8200 3 3 5800 - 11200 4 4 Nallaganla- 2150 - 7050 5 7 Kondapur 5300 - 8100 6 5 Patancheruvu Medchal Highway 3150 - 4950 7 6 Alwal

Note: Kukatpally 1. Top micro-markets of the city, ranked by number of searches on Magicbricks in Q2 2020 Tellapur 2. Price ranges represent the range of avg locality prices in the micromarket in INR per sqft. Kollur Source: Magicbricks Research

Top Micromarkets by active listings Uppal

Micro-Market Price Range Rank Rank Sun City LB Nagar Q2-20 Q1-20 Appa junction Miyapur 2150 - 5700 1 1 Gachibowli 3850 - 8600 2 2 Kukatpally 3800 - 8200 3 3 Nallaganla-Tellapur 2150 - 7050 4 4 Kondapur 5300 - 8100 5 5 Medchal Highway 3150 - 4950 6 8 Adibatla Jubilee Hills 5800 - 11200 7 7 © OpenStreetMap contributors

Note: Note: 1. Top micro-markets of the city, ranked by their active listings on 1. Above map depicts the key localities of the city, with the size of the bubble depicting demand (consumer preference) /supply (active listings) for Magicbricks in Q2 2020 properties in the localities on Magicbricks website in Q2 2020 2. Price ranges represent the range of avg locality prices in the 2. This is an interactive map available on Magicbricks.com under Propindex section. micromarket in INR per sqft. Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard. Source: Magicbricks Research Source: Magicbricks Research

© magicbricks.com Page 2 Price Analysis Hyderabad | Apr-Jun 2020

Q2 2020 Price changes for the city's major localities

Kompally -6.0% Patancheru -7.5% Suchitra Circle -7.5%

Tellapur -3.8% Kollur 0.4% -7.5%

Attapur LB Nagar -4.6% Appa Junction -7.5% -1.2%

Rajendra Nagar -4.5%

Adibatla © OpenStreetMap contributors -4.8%

Note: -7.5% 7.5% 1. Size of the bubble depicts demand, measured by volume of property searches in localities in Q2 2020 2. Color of the bubble represents price change in Q2 2020, with green color representing price increase and red color price decrease. -5% -2.5% 0% 2.5% 5% 3. This is an interactive map available on Magicbricks.com under Propindex section. Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard.

- Maximum price decline witnessed in the premium localities in Hyderabad's north-west direction. These include prime localities like , Jubilee Hills, and Hitec City.

- Price increment was mostly restricted to mid-segment localities such as Narsingi, Beeramguda, and Nizampet, which are located close to the employment hubs...

< INR 4,000 psf INR 4,000-5,000 psf INR 5,000-6,000 psf > INR 6,000 psf

Avg. Price Avg. Price Avg. Price Price Locality Locality Locality Locality Avg. Price Price Change Price Change Price Change Change Adibatla 2,088 -4.8% Toli Chowki 4,009 3.5% Appa Junction 5,066 -1.2% Narsingi 6,015 1.5% Aminpur 2,238 -7.5% 4,087 -4.6% KPHB Colony 6,369 -6.0% Kollur 2,589 -7.5% Tellapur 5,109 -3.8% Patancheru 2,703 -7.5% Uppal 4,133 2.9% Kondapur 6,501 2.3% 5,121 -4.5% 3,238 -7.5% Rajendra Nagar Nagole 4,159 -7.5% Financial District 6,648 -5.8% Beeramguda 3,241 1.7% 4,221 -7.5% 5,175 -6.5% 6,657 -3.1% Ramachandra Puram 3,242 1.6% LB Nagar Gachibowli 3,380 -7.5% Bollaram 4,322 -7.5% Madinaguda 5,421 1.2% Nanakram Guda 6,726 -6.2% 3,382 -7.5% Alkapur Township 4,392 -6.1% 6,898 -7.5% Alwal 3,386 -7.5% Kukatpally 5,541 -7.5% Suchitra Circle 3,497 -7.5% Mallampet 4,410 -7.5% Shaikpet 6,999 0.6% Nallagandla 5,686 -4.1% 3,796 -4.2% Chandanagar 4,577 -3.5% Banjara Hills 7,173 -6.8% Gajularamaram 3,886 -6.2% 5,751 0.2% 4,661 -2.9% Hitec City 7,222 -6.8% Kompally 3,909 -6.0% Nizampet 3,941 4.2% Puppalaguda 4,773 3.9% Begumpet 5,829 0.4% Jubilee Hills 8,562 -7.4%

NMotiey:apur 3,947 -7.5% 1. Above is the list of major localities of the city, with information about their average prices and QoQ price changes in Q2 2020. This is an interactive table available on Magicbricks.com under Propindex section. 2. The locality prices are calculated by averaging the prices of all properties in a locality in multi-storey and builder floor segment, after removing the outlier properties that might distort the overall prices. 3. The four tables above categorize the localities in various price buckets. 4. The color of the numbers represent the price change in Q2 2020, with green color representing price increase, red color price decrease, and grey as neutral. Source: Magicbricks Research

For more information and research related queries, please contact:

Surabhi Arora | Head of Research Devendra Lohmor | Chief Manager Ankur Upadhyay | Data Manager Kavya N | Research Analyst [email protected] [email protected] [email protected] [email protected]

Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard.

Disclaimer: The data represented above is compiled by MagicBricks from multiple sources. MagicBricks gives no warranty, express or implied, as to the accuracy, reliability, and completeness of any information and does not accept any liability on the information which may or may not be subject to change from time to time due to Governmental or non Governmental regulations/directions.

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