www.99acres.com

INSITE REPORT 2018 october-December

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

From CBO’s Desk

The year 2018 marked the ‘settling down’ phase for Indian real estate, which had been battling with unremitting challenges ranging from political instability to colossal policy reforms. Enhanced Contents transparency in the real estate sector, courtesy RERA, helped improve buyer sentiment, which subsequently pushed demand and sales velocity up. The affordable housing sector was the biggest From CBO’s Desk Maneesh Upadhyaya Chief Business Officer beneficiary of the rebounding housing demand. 99acres.com data CBO’s perspective on current 03 showed that homes priced within Rs 60 lakh garnered more than market 99acres.com seventy percent of the demand in top eight metros. Average property prices across metros maintained status-quo with a few aberrations National Outlook in cities such as Pune, where a number of micro-markets recorded Snapshot of real estate ambience 04 price corrections on the back of meek sales. Hyderabad emerged across top 8 metro cities as one of the top performing metros with a consistent rise in home values starting April 2018. Market Indicators 05 Changes in capital rates and inventory The current year is expected to continue seeing gradual status QoQ; and rental values YoY recovery and reap returns of increased regulations in the sector. With fly-by-night developers completely Market Movers shrugged out of the market, buyers having a voice News that impacted Bangalore’s in the form of RERA and homes becoming 06 realty market in Oct-Dec 2018 affordable by the day, unit sales are expected to grow further from here. 99acres Outlook Methodology Financing crunch for builders, 07 99acres’ perspective on current however, may be a potential market The Insite Report by 99acres.com captures dark cloud. the quarterly capital trends and the annual Bangalore rental analysis of residential apartments 08 Key highlights - Bangalore’s capital in key real estate markets – Delhi NCR, Mumbai and rental market in Oct-Dec 2018 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 Oct-Dec 2018. 99acres India’s No.1 Property Portal INSITE : BANGALORE 5 MARKET INDICATORS

DELHI NCR

NATIONAL OUTLOOK

HOME BUYING SENTIMENT KOLKATA While buyer sentiment improved manifold, sales were impacted by AHMEDABAD compliance related challenges. Homebuyers in Kolkata, for instance, waited for clarity over HIRA, and those in Delhi NCR snubbed the under-construction segment due to uncertainty over GST rates. Bangalore, Mumbai, Pune and Hyderabad continued displaying signs of realty revival. MUMBAI

PROPERTY PRICES PUNE Barring Delhi NCR and Kolkata, where property prices maintained status quo, all metros registered an upward revision in property prices with Hyderabad HYDERABAD leading the charts with a two percent uptick, QoQ. The legacy built-up of inventory in Delhi NCR is likely to keep prices under check in the quarters to come. Other metro cities may see modest price hike.

RENTAL LANDSCAPE The growth of the rental market continued unabatedly in Oct-Dec 2018. The BANGALORE CHENNAI Capital Values trend is likely to continue until the capital market undergoes a complete Rental Values revival. With Kolkata in the lead, all metro cities reported an uptick in average rental ‘asks’ by 2-4 percent, except Delhi NCR where average rentals Supply increased by a modest one percent due to oversupply of residential units. Increase by 2-4 percent Increase by 0-1 percent SUPPLY Status quo Though the absorption of residential units dipped, QoQ, the reduction in Decrease by 0-1 percent the inventory pile-up across cities spelt good news. New projects, although restricted, remained inclined towards affordable housing segments, accounting Decrease by 2-4 percent for over 40 percent of the total new inventory. While the country boasts of over 34,800 RERA-approved projects, the pace of registration remained a concern. * 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 Bangalore realty exhibited signs of revival with consistent uptrends in demand for affordable and mid-income housing, QoQ. North and South Bangalore, specifically Civic body proposes spike in Jedimara and Kolifarm junctions. In another the areas connected via , bagged maximum property enquiries and deals. Noticeably, the city roughly needs around 10-12 quarters to sell its complete property taxes move, the airport authority has planned to residential stock – a trend healthier than most Indian metros. The civic body has proposed a 25 percent construct three new access roads to the increase in taxes for residential properties and Kempegowda International Airport from With around 83 percent of ready inventory, the city has an equivalent demand for 30 percent for commercial units from the next Trumpet Flyover to ease traffic congestion. such units. However, close to three-fourth of the total housing demand in Bangalore financial year. The tax hike is anticipated to is for apartments priced within Rs 40 lakh. The supply in this budget category generate Rs 500 crore for ongoing and new Uncertainty prevails over Mekedatu stands just at a little over 50 percent of the overall housing inventory. To trim civic projects. project the demand-supply mismatch, the developer community launched the maximum Post the Central Water Commission (CWC) number of projects in the affordable housing category, resulting in a modest upward RERA penalises defaulters approval, the fresh bout of tussle between revision to the tune of one percent in ‘ask’ rates in Oct-Dec 2018 vs. Jul-Sep 2018. The Karnataka RERA officials imposed a hefty Karnataka and Tamil Nadu over the Mekedatu The rental market narrated a happy story with consistent demand from the migrant penalty on the errant developers who had reservoir project unfolds the uncertainty of tenant community, resulting in a two percent rise in average rental values, YoY. not registered their projects under RERA. The constructing a multi-purpose dam across the Cauvery River. The project worth Rs 5,912 authority collected around Rs 8.83 crore as Factors that weighed the otherwise positive market sentiment down included the crore aims to alleviate drinking water issue penalty from builders. announcement to raise property taxes, the uncertainty over GST rates and several along with generating hydro-electricity to halts in the construction of Namma Metro Phase II. Nonetheless, the city showed meet the power needs of Bangalore. Land acquisition deals delay projects a strong comeback in terms of new launches, housing demand and sales volume Inordinate delays in acquiring land for Namma in the year 2018. The performance in the current year will depend on several Metro Phase II due to insufficient funds factors including, but not limited to, a downward revision in GST rates for under- marred market sentiment. The civic body is construction properties, progress under Pradhan Mantri Awas Yojana - Urban also struggling to acquire land for the road- (PMAY-U) in the State and the effective functioning of the RERA authority. widening project at Sarjapura Road, Trannery Road, Dinnur Main Road and Bellary Road. Price movement in key micro-markets Infrastructure projects on the cards LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE While there is no progress on Smart City projects, the civic body has commenced road- Whitefield 4,700-6,200 0% 6% widening work on Bannerghatta Road between 3,500-4,600 2% 7% JP Nagar 5,200-5,600 4% 6% 4,200-5,400 1% 5% Hennur 5,000-6,300 0% 4% 3,600-4,300 4% 6% 5,100-6,700 3% 5% Jayanagar 8,200-10,900 4% 9% 9,800-10,500 -2% 4% Indira Nagar 8,500-11,400 3% 7%

* 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 Affordable and RERA-registered KEY HIGHLIGHTS SUPPLY OF APARTMENTS projects continued yielding good UC RTM DEMAND UC RTM SUPPLY response in the last quarter of Property prices in Bangalore posted a marginal increase of one percent The popular housing localities of North, East and West Bangalore witnessed the year. The under-construction in Oct-Dec 2018 vs. the previous one. in East Bangalore and the maximum housing unit launches in the quarter. Affordable housing segment, however, was badly hit in in North Bangalore topped the charts with five percent remained the prime choice of both buyers and developers. Of the total the quarter amidst the uncertainty in spike in ‘ask’ rates, each, QoQ. new launches in Bangalore, 40 percent belonged to the Rs 30-60 lakh the revision of GST rates. Category A price bucket. Despite majority developers focussing on launching low- Bangalore South saw an increment of two percent in average developers launched 1BHK housing cost housing units, the city displayed a whopping 21 percent shortfall in 90% / 10% 88% / 12% property prices. Housing pockets such as , Jayanagar, Begur, units for the first time to revive the the supply of units priced up to Rs 40 lakh. On the contrary, the premium JP Nagar, and Basavangudi saw home prices scaling up buying sentiment in the upcoming housing segment including homes priced within Rs 1-2 crore and above by four percent, each, QoQ. Consistent demand from IT workforce led quarters. Rental values surged by Rs 2 crore witnessed an oversupply due to shift in demand towards the low- these pockets together bag a humongous 50 percent share in the total two percent, YoY and the capital ticket price homes. 85% / 15% sales of units this quarter. 82% / 18% market saw ‘ask’ prices of residential The rental market continued to outperform the capital market. Competitive apartments going up to the tune of Noticeably, the suburban areas of Bangalore, Marathahalli in the East rents, proximity to office spaces and connectivity links remained the prime one percent, QoQ. and in the South, saw an upsurge of three and two percent, focus of the tenant community throughout the year. The rental markets of respectively, in average property ‘asks’. While proximity to Whitefield, , and remained upbeat with seven percent hike in 42% Sarjapur Road, Electronics City and Outer Ring Road (ORR) kept the 40% 60% 62% lease rates, YoY, driven by the availability of fresh rental stock. former popular amongst homebuyers; metro connectivity ensured Oct-Dec 2018 Jul-Sep 2018 robust housing demand in the latter. * Graph depicts the availability of residential apartments wrt other property types, QoQ, along with the distribution of under-construction and ready stock

BUDGET-WISE SUPPLY OF PROPERTIES

DEMAND SUPPLY 39% 39% 37% 20% 19% 17% -2% -5% 4% 4% 4% -16% -6% 3% 4% 3% 3% 29% 28% 30% 29% 27%

4% -18%

-21%

2% 2% 27% 0%

1% 3% 1% 2% 0% 1%

0% 0% 0% 0% 0% 4% 15% 15% 17% 3% 1%

-3% 12% 10% 10%

18% 19% 23% 22% 25% 24% 10% 10% 10% 10% 10% 18% 17% 16% 7% 8% 9%

Oct-Dec Jul-Sep Oct-Dec Oct-Dec Jul-Sep Oct-Dec Oct-Dec Jul-Sep Oct-Dec Oct-Dec Jul-Sep Oct-Dec Oct-Dec Jul-Sep Oct-Dec 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 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 Ramamurthy Nagar Nagar Ramamurthy JP Nagar Marathahalli Uttarahalli City Electronic Hormavu Yelahanka Whitefield Hennur

* %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 Oct-Dec 2018 Locality Oct-Dec 2018 Locality Oct-Dec 2018 Locality Oct-Dec 2018

Akshaya Nagar 4892 Jayanagar 10900 Akshaya Nagar 14 17 Banashankari 6230 JP Nagar 5400 17 Kasavanhalli 19 5450 Kadugodi 4500 Banashankari 17 12 Bannerghatta 5610 4300 Banaswadi 17 Kodihalli 20 Basavangudi 9890 Kasavanhalli 5130 Basavangudi 23 Koramangala 27 Begur 4310 Kengeri 4180 Begur 15 KR Puram 15 6300 Koramangala 10200 Bellandur 21 Kumaraswami Layout 13 Benson Town 9550 KR Puram 4625 17 19 Billekahalli 5185 Kudlu Gate 6145 13 Mahadevpura 20 Bommanahalli 4680 Kundalahalli 5535 19 Malleshwaram 26 Bommasandra 2910 Mahadevpura 5710 BTM Layout 19 Marathahalli 20 Brookefield 5910 Malleshwaram 11610 23 16 BTM Layout 5960 Marathahalli 6300 Cox Town 23 19 Budigere 4942 4510 CV Raman Nagar 17 Nagarbhavi 14 Cooke Town 8535 Nagavara 6235 Doddathoguru 15 Nagavara 15 CV Raman Nagar 5710 5075 26 New Thippasandra 22 Dodda Nekkundi 4230 Panathur 5950 Electronic City 15 Panathur 20 Doddathoguru 3710 Raja Rajeshwari Nagar 4700 Frazer Town 23 Raja Rajeshwari Nagar 13 Electronic City 4600 Rajaji Nagar 11763 Gottigere 13 Rajaji Nagar 18 Frazer Town 9100 Ramamurthy Nagar 4250 HBR Layout 18 Ramamurthy Nagar 14 Gottigere 4685 RT Nagar 5600 Hebbal 17 31 Gunjur 4350 Sahakara Nagar 6200 Hennur 17 RT Nagar 15 Harlur 6070 Sanjay Nagar 7350 18 Sahakara Nagar 16 HBR Layout 5420 Singasandra 4265 Hormavu 15 Sarjapur 15 Hebbal 7700 Subramanyapura 4670 HSR Layout 21 Singasandra 15 Hegde Nagar 5460 TC Palaya 5610 Hulimavu 16 Subramanyapura 13 Hennur 5290 Thanisandra 5340 Indira Nagar 26 TC Palaya 14 Hoodi 5600 Uttarahalli 4550 ITPL 18 Thanisandra 17 Agara 4410 Varthur 4770 Jakkur 15 27 Hormavu 4565 4320 16 Uttarahalli 13 HSR Layout 6065 Vijayanagar 5700 Jayanagar 21 Vidyaranyapura 13 Hulimavu 5230 Whitefield 5700 JP Nagar 17 Vijayanagar 18 Indira Nagar 10310 Yelahanka 5250 Kadugodi 15 Whitefield 19 Jakkur 5450 Yeshwanthpur 7690 Kaggadasapura 17 Yelahanka 14 Jalahalli 5590 Kalyan Nagar 18 Yeshwanthpur 21

*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

Price trends and Mobile App property advice on Android platform and iOS

Genuine Over 8.2 lakh listings with property photographs listings

More than 1.5 lakh projects

CONTACT US 0120 4879400 Monday - Friday 9:30 AM to 6:30 PM IST Email: [email protected]

CONTACT US 0120 4879400 Monday - Friday 930 AM to 630 PM IST Email content99acres.com