Jan-Mar 2014 Quarter
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HYDERABAD FOREWORD PropIndex has completed three years now. Over this period, we’ve accumulated a wealth of data/analytics on price/locality trends and market performance. As the Indian property buyer gets more focused on returns from investment, we hope the data provided here, helps you in making informed property decisions. Use d in tandem with the host of advisory services available online at advice.magicbricks.com, the effort is to make this a one-stop shop for all your property queries, requirements and information. The year 2014 started with anticipation among real estate stakeholders concerning the 16th general elections in the country. These Lok Sabha elections have kept the Indian Real Estate Market in the wait and watch mode. This is reflected in the National Property Index with a mere 1 per cent change in the Jan-Mar 2014 quarter. City index values too remained intact and ranged between minus 1 to plus 3 per cent. The formation of new government is expected to infuse fresh life into the real estate market and improve home buyers sentiments. In the current quarter, property markets remained sluggish. However, robust demand from end-users arrested any significant change in property values. We have observed few finds from the current report: Key Findings l Across the country, capital markets have remained passive while rental markets have flourished. l Demand patterns across cities remained more or less in line with the previous quarter with the mid-budget range of Rs 30-50 lakh remained the most preferred category, especially in Bangalore and Pune. However high end properties remained more in demand in Gurgaon and Mumbai. l Premium luxury properties remained oversupplied across cities despite a robust demand of over 20%. l Mumbai topped the chart with maximum demand for properties worth Rs 1 crore and above, followed by Delhi and Gurgaon. l Slower demand for property forced sellers to negotiate between 5-15 per cent on the asking values. In this issue we have incorporated Greater Noida as an independent city which has recorded growing demand for residential properties, offering huge options in the affordable ranges. Do write in at [email protected] and share your views on this report and how we could make PropIndex even better. Sudhir Pai Business Head, Magicbricks.com VOL 3, ISSUE 4; JAN-MAR, FY 2013-14 propindex.magicbricks.com NATIONAL PROPERTY INDEX (NPI) JAN-MAR 2014 n Capital markets across cities were stable while rental markets were active with considerable demand and rise in values n The preferred localities in different cities remained unchanged since the Oct-Dec 2013 quarter n Consumer demand slowly and steadily moved towards the mid-segment category. Demand inched up in the luxury category which remained JAN-MAR 2014 oversupplied. With buyer sentiments down across the country and everyone awaiting the general elections, the common consensus is against buying property. Due to the resolving of the This has resulted in people opting for rental accommodation as opposed to Telangana issue, the capital values in buying their own home. This is the prime reason that held the growth of almost 70 per cent of the localities in the National Property Index (NPI). It rose by 1 per cent in the Hyderabad witnessed a rise of Jan-Mar 2014 quarter. NPI is a weighted average of supply and values 1-5 per cent. This, combined with across 11 cities in India. During the Jan-Mar 2014 quarter the city index increased supply, pushed up the City value was found to be in the range of minus 1 to plus 3 per cent. Index by 3 per cent during the Jan-Mar 2014 quarter. The rise in capital values also pushed up the Listed Price Monitor by 3 per cent. TOP YIELD GROSSERS Gross yield is a ratio of average annual rental value to the average capital value of the property in the current quarter. Below is the top yield-grossing locality in the city. Locality Gross yield Hyderabad, Manikonda 4.85% CAPITAL GAINS It indicates the locality recorded maximum increase in the capital value in the current quarter. Locality % Change Hyderabad,Padamrao Nagar 5.30% HYDERABAD propindex.magicbricks.com 02 VOL3, ISSUE 4; JAN-MAR, FY 2013-14 PROPINDEX - HYDERABAD Editorial Despite all the commotion around the Telengana issue the Hyderabad residential property market witnessed minor change in values. The Hyderabad City Index rose marginally during the Jan-Mar 2014 quarter and the Price Monitor rose by 3 per cent. Almost 60 per cent of the localities witnessed marginal change in demand in Hyderabad, heralding a buyers’ market. Areas located primarily in core Hyderabad reported sharp change in property values, while several others marked as upcoming by the industry The City Index of Hyderabad rose by 3 per cent in the Jan-Mar players have recorded a slight change 2014 quarter, as compared to Oct-Dec 2013 quarter. The Price in the Jan-Mar 2014 quarter. This Monitor also rose by 3 per cent. With upcoming localities in the resulted in the City Index rising outskirts reporting a marginal change, the NPI for the city saw marginally. a rise of 1 per cent. Places like Nizampet and Miyapur, located close to the IT/ITeS industry witnessed a drop in property values. Proximity to the congested ORR is one Key Takeaways of the reasons for this trend. l With the bulk of properties left its impact on the capital A closer look at the Hyderabad market witnessing a minor change in values. Sainikpuri, Begumpet revealed some interesting trends. For instance, the supply and demand were values, the Hyderabad City and Madhapur have recorded evenly balanced in the Rs 40-60 lakh, Index rose marginally during increased capital values in the Rs 60-100 lakh and in the Upto Rs 20 the Jan-Mar 2014 quarter current quarter lakh categories. However, the city witnessed a maximum demand l Over 60 per cent of localities l With continued ongoing (40%) for houses in the Rs 20-40 witnessed marginal change in Telegana agitation and the lakh category while the supply stood demand in Hyderabad, impending elections, prices in at a mere 26 per cent. heralding a buyers’ market Hyderabad have not grown As expected, supply in the significantly. This has resulted l While localities in core Rs 1 crore and Above segment was in consumers viewing it as a much higher than the demand. Hyderabad showed sharp buyers’ market change in prices, several others The demand for multi-storey previously marked as upcoming, l The buyer demand shifted from apartments was the maximum in the recorded a slight change. This 2BHK to 3BHK units. Maximum city at 56 per cent, almost well resulted in the City Index rising properties delivered were in matched with a supply of 52 per cent. only marginally the 3BHK segment, within the Except for localities like Madinaguda, budget range of Rs 70-80 lakh Srinagar Colony and a few other l Localities like Gachibowli, the and above places which recorded a drop in rental financial district of Hyderabad, values almost all the localities tracked recorded a marginal rise in l In the super luxury segment of recorded a significant increase. property values Rs 1 crore and Above, market A more in-depth analysis throws up offerings included villas and some interesting figures. While l Places like Nizampet and independent high-end homes Miyapur, despite the presence of 60 per cent of the total localities located in areas in and around tracked witnessed only a marginal rise the IT/ITeS industry and Jubilee Hills, Banjara Hills, in rental values, a few like Hitech City, proximity to Gachibowli, Madhapur and Gachibowli Gachibowli, KPHB Colony and witnessed a drop in property Madhapur reported significant values. Proximity to the l With several developers focusing increase in values in the congested ORR is the reason for on the luxury segment, the Jan-Mar 2014 quarter. this trend in this quarter market witnessed an oversupply. Going forward, the upcoming 2014 The prices of these offerings elections are expected to bring political l The under-construction metro to ranged from Rs 2-3 crore to stability and thereby, a boost to the run across various zones, has Rs 4-6 crore real estate market. VOL3, ISSUE 4; JAN-MAR, FY 2013-14 03 propindex.magicbricks.com HYDERABAD LISTED PRICE MONITOR RENT MONITOR 3% l Approximately 60 per cent micromarkets in l Except for Madinaguda, Srinagar Colony and a few Hyderabad have reported marginal change in prices other places which recorded a drop in rental values almost all localities tracked recorded an increase l Areas such as Jubilee Hills, Kompally and Attapur registered no change in the previous quarter l Approximately 60 per cent of the total localities tracked witnessed only a marginal rise in rental l Areas like Kondapur, Gachibowli, Miyapur and values. A few like Hitech City, Gachibowli, KPHB Uppal reported a marginal change in the Colony and Madhapur reported significant increase Jan-Mar 2014 over the Oct-Dec 2013 quarter in values in the Jan-Mar 2014 quarter l Places like Nizampet and Hitech City, due to the l Places like Kondapur and Miyapur with proximity presence of IT/ITeS industry and proximity to to IT hubs and Somajiguda, despite its proximity to Gachibowli, witnessed a marked increase in property city centres, registered only a marginal increase values. This is a notable change as compared to the previous two quarters (Jul-Sep 2013 and Oct-Dec 2013) l High-end residential areas such as Banjara Hills and when the values continued to remain constant certain parts of Madhapur witnessed maximum rise in rental values YIELD METER Locality Average Rental Average Capital Gross Value (Rs/sqft/mth) Value (Rs/sqft) Yield Jubilee Hills 14.00 6,475.00 2.59% Kondapur 12.75 3,625.00 4.22% Miyapur 9.25 3,075.00 3.61% Kukatpally 10.75 3,475.00 3.71% Banjara Hills 16.00 7,025.00 2.73% Hitech City 14.25 4,350.00 3.93% KPHB Colony 11.75 3,825.00 3.69% Madinaguda 9.75 3,050.00 3.84% Manikonda 10.50 2,600.00 4.85% Gachibowli 15.00 4,000.00 4.50% l The yield meter ranged from 2.59-4.85 per cent in l Jubilee Hills continued to hold its position at the the Jan-Mar 2014 quarter, a marginal change as bottom of the list in the Jan-Mar 2014 quarter, compared to the 2.61-4.48 per cent recorded in the reporting a gross yield of 2.59 per cent primarily Oct-Dec 2013 quarter.