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INSITE REPORT 2018 April - June

99acres ’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : HYDERABAD 3

CBO’s Desk

The positive impact of groundbreaking policy reforms - Real Estate (Regulation and Development) Act and Goods and Services Tax (GST) – is seeming to bear some fruit in FY 2018- Contents 2019. Marked by a gradual reduction in unsold inventory, a rise in enquiries in affordable housing segment and the return of new launches, the beginning of the fiscal year is hinting From CBO’s Desk Maneesh Upadhyaya Chief Business Officer towards a slow but steady revival. 03 CBO’s perspective on current market 99acres.com The quarter recorded a quantum jump of almost 50 per cent in new residential launches to reach 50,100 units. Affordable National Outlook housing led the supply graph, up by about 100 per cent, QoQ, in 04 Snapshot of real estate ambience Pune, Hyderabad, Delhi NCR, Chennai, Mumbai Metropolitan across top 8 metro cities Region, Bangalore and Kolkata. Inventory levels, on the other hand, dropped by 10-30 per cent, YoY, across metros. RERA- Market Indicators approved projects commanded a significant share of the 05 Changes in capital rates and inventory residential demand, evident from a healthy upswing status QoQ; and rental values YoY in the timeshare on RERA-registered projects on 99acres.com. Realty stakeholders are gung-ho Market Movers about the upcoming festive quarter, which News that impacted Hyderabad’s might see a resurgence in end-user 06 realty market in Apr-Jun 2018 demand and sales volume. 99acres Outlook Methodology 07 99acres’ perspective on current market The Insite Report by 99acres.com captures the quarterly capital trends and the annual Hyderabad rental analysis of residential apartments 08 Key highlights - Hyderabad’s capital in key real estate markets – Delhi NCR, Mumbai and rental market in Apr-Jun 2018 Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Annexures Ahmedabad. In order to assess the prevailing sentiment, the report delves deep into demand 10 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 2018. 99acres India’s No.1 Property Portal INSITE : HYDERABAD 5 MARKET INDICATORS

Capital Values Rental Values Supply Bangalore ˄ ˄ ˅ Delhi NCR ˄ Mumbai ˄ ˄ ˅ Chennai ˄ ˅ Pune ˄ ˅ Hyderabad ˄ ˄ ˅ Kolkata ˄ Ahmedabad ˄ ˄ ˄ * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com NATIONAL OUTLOOK HOME BUYING SENTIMENT IN FOCUS The realty landscape witnessed a fleeting calm even as enquiries and sales recorded a slight uptick in most metro cities this quarter. While the RERA ANNIVERSARY non-formation of a RERA-body marred buyer sentiment in Kolkata and Hyderabad, the approaching ‘Aadi’ period slackened growth in Bangalore and May 1, 2018 marked the first anniversary of the Real Estate (Regulation and Development) Act, 2016 Chennai. A revival in property sales is expected in the festive quarter. [RERA]. The implementation progress varied from State to State depending on timely compliance with Central RERA rules. Kerala, West Bengal and the six north-eastern States are yet to implement the Act. PROPERTY PRICES Others including Karnataka, the NCT of Delhi and Tamil Nadu made snail-paced progress, tarnishing consumer sentiment. Price movement remained marginal across cities, except Hyderabad, which saw notable growth due to infrastructural overhaul and robust office-space absorption. The premium segment remained passive as affordable housing GENERAL BUYING SENTIMENT grabbed a majority share of buyer demand. Any significant deviation in Buyer confidence ameliorated for RERA-approved projects. A resurgence of fence-sitters in select pockets, average weighted capital ‘asks’ is likely to happen around Oct-Dec 2018. driven by connectivity and job opportunities, was a testimony to the reviving market. Conversion rate improved, albeit minimal. The affordable housing sector garnered maximum buyer interest, however, RENTAL LANDSCAPE RERA registration alone did not suffice to drive buyers towards under-construction properties. The rental landscape continued to remain upbeat for the seventh consecutive quarter. Rental values witnessed a notable hike across cities, PROPERTY PRICES except Delhi NCR and Pune where a pile-up of ready inventory inflicted the Enquiries resurfaced and led several housing pockets register an uptick in property prices. While market. The growth is likely to continue for a few more quarters, until home Hyderabad reported a notable rise in residential property rates, Pune and Chennai maintained status quo. buying picks up pace and sees a complete revival. Delhi NCR and Mumbai reported a price correction in the last one year due to discounts offered by developers to lure buyers back into the market. SUPPLY The hiatus in new launches amidst piling residential stock helped cities such as NEW LAUNCHES Bangalore, Mumbai, Pune, Chennai and Hyderabad rationalise inventory levels. New launches nose-dived across cities due to increased compliance under RERA. Chennai, Hyderabad and Slow-paced registrations under RERA played a key role in curtailing the saleable Kolkata reported a 50-70 percent dip in launches, YoY, largely owing to delayed notification of RERA rules. primary stock. The trend is expected to continue as no exceptional measures Delhi NCR, Mumbai, Bangalore and Pune, too, witnessed new launches coming to halt. A year later, the are being observed to fast-track RERA registrations. markets seem to have gained ground with new launches reporting an improvement, QoQ. 99acres India’s No.1 Property Portal INSITE : HYDERABAD 7

99ACRES OUTLOOK Market Movers Hyderabad’s realty is poised on the threshold of growth as is evident from the steadily improving connectivity, office space absorption and civic infrastructure. Lack of regulatory body curbs New IT corridors bode well for the real All this, however, was offset by the lack of a regulatory body even a year after RERA sentiment estate sector was implemented countrywide. To this end, Apr-Jun 2018 witnessed limited new Real estate activities and sales volume The government’s plan to create launches and traction from end-users. continued to remain restricted in the absence new IT corridors in proximity to , Price points strengthened only due to several long-drawn under-construction of an official RERA website and a regulator. and Budvel is set to positively projects nearing completion or becoming possession-ready, despite being ineligible This rendered approximately 10,000 impact both the capital and rental segments for sale. The stakeholders, however, remained hopeful ahead of the RERA website newly-constructed homes in the last 1.5 of the city in the long run. launch in the forthcoming quarter. Real estate sentiment was especially vibrant in years ineligible for being marketed or sold. Upcoming office developments act as the IT-driven locales such as Manikonda, , Gachibowli and . Civic and transport infra enhancement a silver lining Demand was observed primarily for properties priced up to Rs 45 lakh. The gradual on the cards Over 32 million sq ft of office space is under bridging of the demand-supply lacunae in this segment proves that developers are The State government’s recent allocation various stages of construction, concentrated finally able to gauge buyers’ sentiment and tweak their offerings accordingly. of Rs 3,800 crore towards overhauling primarily near the secondary business district the existing civic infrastructure, cleaning (SBD) and the peripheral business district Phase II of the metro project, which is to be completed by early 2019 and and beautification of the Musi River and (PBD). A fresh supply of Grade-A office space government initiatives towards enhancing investment in the IT hubs of completion of metro connectivity projects, is anticipated to create demand in the and Gachibowli will work in favour of the residential landscape. lent cheer to Hyderabad’s realty landscape. residential segment in the future. Overall, the city’s realty is set to take wings and a resurgence in sales is anticipated in the festive quarter. Construction of Regional Ring Road to open up new land parcels The development of the Hyderabad Regional Ring Road (RRR), connecting major highways – NH-9, NH-7 and NH-22 – is expected to spell good news for several existing real estate belts such as Warangal, Kothur, Price Movement in Key Micro-markets Bibinagar and Mulugu, among others, while LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE opening up new topographies. Manikonda 3,200 - 3,600 5% 7% 2,600 - 3,100 4% 8% Beeramguda 2,100 - 2,500 2% 2% Gachibowli 4,400 - 5,200 2% 11% Kukatpally 3,500 - 4,600 1% 9% 3,400 - 4,100 4% 9% Kondapur 4,300 - 5,100 4% 9% Pragati Nagar 2,900 - 3,500 5% 10% Chandanagar 3,300 - 4,100 3% 11% 2,100 - 3000 0% 11%

* 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 : HYDERABAD 9

HYDERABAD The stagnancy of Q1 2018 gave way KEY HIGHLIGHTS SUPPLY OF APARTMENTS to a slightly cheerful Apr-Jun 2018, UC RTM DEMAND UC RTM SUPPLY with average weighted home values Nearly 85 percent of the tracked localities in Hyderabad recorded a Miyapur attracted end-users on the back of a plethora of mid-range, bolstering by three percent, QoQ, in spike in property prices in Apr-Jun 2018, as compared to the preceding newly-constructed properties priced around Rs 50-60 lakh. The opening of the Hyderabad. A spike in capital rates, quarter. New launches, however, continued to remain restricted in Miyapur- metro corridor in the March ending quarter of 2018 also lent however, was not representative of anticipation of a real estate regulator in the forthcoming months. cheer to the real estate market of the neighbouring housing pockets. improving sales, which remained The affordable locales of Pragati Nagar and Himayat Nagar topped the The upmarket , too, reported an incremental growth in home modest due to the absence of a capital charts with five percent growth, each, in Apr-Jun 2018, vis-à-vis values. Price points increased to the tune of four percent, QoQ, due to steady

RERA body. Stakeholders continued 83% / 17% Jan-Mar 2018, showcasing Hyderabad’s appetite for properties priced commercial development and absorption. to wait for a real estate regulator around Rs 40-45 lakh. 83% / 17% as under-construction projects Mirroring the capital segment, the rental market, too, showcased a growth inched towards completion, leading The western regions of Manikonda, Madhapur, Kondapur, Gachibowli trajectory in Apr-Jun 2018 vis-à-vis the same quarter in 2017, with average 73% / 27% to incremental growth in property and Kukatpally, which are also a part of Hyderabad’s IT belt, witnessed weighted rates improving by five percent. Most of the localities reported growth 62% / 38% price tags. price points heading north by a margin of 1-5 percent, QoQ. on the wave of office space consumption.

Proximity to HITEC City helped several localities post growth on the Banjara Hills and led the race with 10 percent growth in rental values, capital graph in the Apr-Jun 2018 quarter, including Attapur, each. These two locales were closely followed by Madhapur and Gachibowli,

and Miyapur. The micro-markets boasted of a quarterly surge of four each reporting a rise of nine percent, YoY. 51% 43% 45% 46% percent, each. Apr-Jun 2018 Jan-Mar 2018

* Graph depicts the availability of residential apartments wrt other property types, QoQ, along with the distribution of under-construction and ready stock

9% 9% 8% 8% 10% 7% BUDGET-WISE SUPPLY OF PROPERTIES 5% 5% DEMAND SUPPLY 4% 4% 4% 4% 4% 4% 36% 2% 1% 31%

2% 30% 29% 33% 29%

0% 0% 23% 23% 23% 21% 19% 18% -1% 18% 15% 14% 5% 6% 18% 18% 16% 6% 25% 25% 24% 33% 19% 11% 11% 19% 20% 15% 10% 10%

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 Capital Rental 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 Within Rs 25 Lakh Rs 25-40 Lakh Rs 40-60 Lakh Rs 60 Lakh to 1 Crore Rs 1 Crore and Above Manikonda Madhapur Kondapur Gachibowli Kukatpally Nizampet City HITEC Miyapur Attapur

* %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 : HYDERABAD 11 99acres Annexures India’s No.1 Property Portal FIND BEST OPTIONS TO IND BEST OPTIONS TO CAPITAL VALUES RENTAL VALUES buy, sell, rent property Locality Apr-Jun 2018 Locality Apr-Jun 2018 BUY SELL RENT PROPERTY

Alkapuri 3250 13 Appa Junction 3900 Appa Junction 13 Attapur 3700 Attapur 11 Bandlaguda 2950 Banjara Hills 17 Banjara Hills 7450 14 Beeramguda 2200 Chandanagar 14 Begumpet 5050 Gachibowli 18 Price trends and 2600 Himayat Nagar 16 Mobile App property advice Chandanagar 3825 HITEC City 20 on Android platform Gachibowli 5200 Jubilee Hills 18 and iOS Hafeezpet 4325 Kondapur 15 Himayat Nagar 4950 Kukatpally 15 Genuine HITEC City 5675 Madhapur 18 Over 8.2 lakh listings with Jubilee Hills 6400 Madinaguda 12 property photographs 4375 Manikonda 14 listings Kondapur 4800 10 Kukatpally 4450 Miyapur 12 LB Nagar 3500 13 Madhapur 5900 Nizampet 10 Madinaguda 4000 16 More than Manikonda 3525 12 1.5 lakh Mehdipatnam 4000 projects Miyapur 3800 Nagole 3000 Nallagandla 4650 Nanakramguda 5075 Narsingi 4025 Nizampet 3025 Pragati Nagar 3425 Sanath Nagar 4800 CONTACT US Shaikpet 5875 0120 4879400 4400 Monday - Friday Tolichowki 3250 9:30 AM to 6:30 PM IST Email: [email protected]

*All prices are per sq ft rates *Capital change depicts quarterly alterations in average ‘asks’ *Rental change depicts yearly alterations in average ‘asks’ CONTACT US 0120 4879400 Monday - Friday 930 AM to 630 PM IST Email content99acres.com