HYDERABAD RESIDENTIAL JUNE 2019 MARKETBEATS 90% 82% 28% SHARE OF NEW LAUNCHES IN SHARE OF MID SEGMENT IN DECREASE IN LAUNCHES WESTERN QUADRANT(Q2 2019) NEW LAUNCHES (Q2 2019) (Q- O - Q) HIGHLIGHTS RENTAL VALUES AS OF Q2 2019* Larger projects are awaiting approvals, decline in Average Quoted QoQ YoY Change Short term Submarket new launches is temporary Rent (INR/Month) Change (%) (%) outlook Unit launches were recorded at 3300 units, a 28% q-o-q decline with the quarter coinciding High-end segment with the general elections. Developers were thereafter in a wait-and-watch mode for favorable Banjara Hills 58,000-1,50,000 0% 0% policy announcements in the proposed budget by the new government. In addition, some Madhapur, Gachibowli 35,000-70,000 0% 0% larger projects were also awaiting environmental clearance. Meanwhile, developers are Kukatpally 20,000-40,000 0% 2% focused on completing existing projects which are in advanced stages of construction. Mid- Himayathnagar 20,000-36,000 0% 0% segment accounted for around 80% of the new launches during the quarter, spread across Mid segment established and upcoming residential corridors of Kondapur, Nallagandla, Mokila and Kokapet. We expect new launches to pick up over the next 6-12 months as approvals for Banjara Hills 22,000-30,000 0% 0% larger projects gain pace. For now, a total of 2500-3000 units are scheduled for launch in H2 Madhapur, Gachibowli 18,000-27,500 0% 7% 2019. New projects by prominent developers such as Aparna Constructions, Sumadhura Kukatpally 14,500-22,500 0% 10% Group and Vasavi Group are likely in the short term. Himayathnagar 13,500-18,000 0% 2% Momentum building up in the East and South Metro connectivity, availability of land parcels, infrastructure developments under the Strategic Road Development Plan and the Government’s Look East Policy to propel CAPITAL VALUES AS OF Q2 2019* commercial office market are driving demand in the Eastern corridor comprising areas such as Uppal - Pocharam and Nagole- LB Nagar. HMDA has recently e-auctioned 67 residential Average Quoted QoQ YoY Short term plots of about 27 acres in the Uppal Bhagayat area and they were all sold at rates far more Submarket Rate (INR/sf) Change (%)Change (%) outlook than the reserved price set by the government, indicating a robust demand from developers, High-end segment investors and end-users. ORR connectivity, infrastructure upgrades, government proposals for setting up IT parks to decongest Madhapur / Gachibowli and proposed airport metro Banjara Hills 8,000-12,000 0% 5% network are driving momentum towards the Southern belt comprising of Rajendranagar, Madhapur, Gachibowli 5,500-7,800 2% 18% Attapur, Kismatpur and Budwel etc. Kukatpally 4,700-6,500 0% 12% Prices on the rise, Western quadrant leads Mid segment Prices in the Western quadrant have increased by 2-3% q-o-q / 7-18% y-o-y due to strong Madhapur, Gachibowli 4,000 – 5,600 2% 7% end-user demand, robust sales and steeply rising land values. Similarly, locations in the Kukatpally 3,500 – 4,800 0% 6% Eastern and Southern quadrants such as Rajendranagar – Attapur, Nagole – Uppal and LB Himayathnagar 3,500 – 4,600 0% 1% A Cushman & Wakefield Nagar have also witnessed a 2-5% q-o-q rise on the back of improved connectivity, ongoing Research Publication commercial development and infrastructure upgrades. As such, rentals in these localities have Miyapur, Nizampet 3,000 – 4,200 3% 3% also grown by more than 7-8% on an annual basis. We expect price growth to continue across www.cushmanwakefield.com the city over the next 6-12 months. HYDERABAD RESIDENTIAL MARKETBEATS JUNE 2019 Rohan Sharma SIGNIFICANT PROJECTS LAUNCHED IN Q2 2019 Director Research Services BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE**(INR/SF) Tel: +91 124 4695555 [email protected] My Home Ankura Tellapur My Home Constructions Pvt Ltd 603 7,800 Bollineni Bion Kondapur BSCPL Infrastructure Ltd. 936 5,900 Ramky One Galaxia Phase II Nallagandla Ramky Group 412 5,399 SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q2 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS EXPECTED COMPLETION Vertex Premio Kukatpally Vertex Homes 223 Q4 2020 Cybercity Builders and Hitech city 1240 Q4 2021 Cyber City Marina Skies Developers Vasavi Sri Nilayam LB Nagar Vasavi Group 773 Q1 2024 SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q2 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS UNIT SIZE (SF) Muppa Alankrita Narsingi Muppa Projects India Pvt. Ltd. 200 1200-1470 Alekhya Palm woods Nanakramguds Alekhya Homes 175 1450-2050 Data collated from primary and secondary resources. Estimations are subject to change * Rental and capital values have been depicted only for key submarkets ** Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc. The above values for high-end segment are for units typically of 1,200-3,000 sf The above values for mid segment are for units typically of 800-1,400 sf ^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 A Cushman & Wakefield Research Publication Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for 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 services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. www.cushmanwakefield.com Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..