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INSITE REPORT 2018 October-December

99acres ’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : HYDERABAD 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 such as , 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 Hyderabad’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 Hyderabad rental analysis of residential apartments 08 Key highlights - Hyderabad’s capital in key real estate markets – Delhi NCR, Mumbai and rental market in Oct-Dec 2018 Metropolitan Region (MMR), , 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 Oct-Dec 2018. 99acres India’s No.1 Property Portal INSITE : HYDERABAD 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 : HYDERABAD 7

99ACRES OUTLOOK Market Movers An upsurge in the housing deals, infrastructure developments, and commercial expansion defined the health of Hyderabad’s realty sector in Oct-Dec 2018. Sales Infrastructure overhaul on the cards have been identified. Majority of volume reported a marked improvement of 30 percent in Q4 2018 vis-à-vis Q4 The State government has announced an these structures are located in areas 2017; particularly after the gained political stability. State government’s efforts infrastructure makeover plan worth Rs 50,000 of , Panjagutta, , towards boosting connectivity via elevated corridors, radial roads and new metro crore. The prime focus of the development will , , and LB Nagar. links also helped improve market sentiment. be stormwater drains, roads, and sewerage In contrary to the burgeoning demand, supply remained erratic. Except for a few system in urban and rural areas. The existing Increased office space demand from launches in West Hyderabad, new supply suffered on the back of the State elections Strategic Road Development Plan (SRDP) global giants and poor implementation of RERA (TRERA). Lack of awareness amongst will also be fast-tracked and various flyovers, The global corporate giant, has developers about the registration process under TRERA significantly impacted the skywalks and junctions will be developed to leased four lakh sq ft of office space in launch of new housing units. Small and stand-alone developers, who are yet to ease traffic near HITEC city. HITEC City along with a 54-acre campus in come in terms with the regulatory act, adopted a wait-and-watch approach. Only . The Xander Group also expanded category A developers were seen ahead of the curve and moved seamlessly with -HITEC City metro inches its footprints in the city and signed a deal the law. Despite timeline extensions, around 140 projects were registered under closer to completion worth Rs 2,550 crore with a local developer. TRERA till December 2018. The soon-to-be-operational, Ameerpet-HITEC The group not only plans to develop but also acquire 4.5 million sq ft office City metro stretch will not only bring the West Plotted developments along the NH-48 garnered healthy buyer interest. Investors space in the city. Holistically, the and the East zones of the city closer, but seem to be focusing on plotted developments in the wake of slow-paced developments will generate improve the realty sentiment of the adjoining implementation of TRERA. The trend is likely to continue in the ensuing quarters. approximately one lakh job housing clusters. Key micro-markets that are With supply being put on the back burner and demand growing at a steady pace, opportunities in the city and likely to benefit from the development include property prices are expected to go north. A pool of RERA-certified projects will will eventually elevate , Maduranagar, and help in tailoring the unmet demand and trigger the necessary price correction, housing demand. the IT hubs of HITEC City and . particularly in areas such as , HITEC City and Banjara Hills.

Over half of the structures violate building norms Price movement in key micro-markets Approximately, 50 percent of the properties LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE in Hyderabad have reportedly been flouting the approved building plans. From the 2,800-3,400 -1% 6% construction of additional floors to non- 3,500-4,300 5% 7% compliance with the norms, multiple issues Beeramguda 2,400-3,100 4% 4% Kukatpally 3,900-5,100 3% 4% Miyapur 3,500-4,300 3% 6% Gachibowli 4,700-5,900 3% 5% 4,900-5,800 5% 7% Pragati Nagar 2,900-3,500 1% 6% Chandanagar 4,000-5,100 5% -8% Madhapur 5,500-6,500 4% 12%

* 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 Hyderabad’s real estate market KEY HIGHLIGHTS SUPPLY OF APARTMENTS remained vibrant in Oct-Dec 2018. UC RTM DEMAND UC RTM SUPPLY Despite a fleeting lull caused by the Demand for residential apartments remained bullish across the city, Invariably, 2 BHK units priced between Rs 60 lakh and Rs 80 lakh have been State elections, the city’s real estate pushing property values go north in Oct-Dec 2018 vs. the previous the prime choice of homebuyers in Hyderabad. However, the quarter ending landscape displayed resilience in quarter. Barring a few micro-markets, almost 75 percent of the tracked December saw a marked shift in the investor interest towards mid-income the backdrop of expanding metro localities in Hyderabad registered an upward price movement. properties ranging from Rs 40 lakh to Rs 60 lakh. connectivity, augmented commercial West Hyderabad, also acknowledged as the IT hub of the city, remained Plotted developments also regained momentum. Areas such as Shankarpally leasing, proposed Regional Ring the most sought-after housing belt. Areas such as HITEC City, and witnessed increased popularity for small-sized residential Road (RRR) and the extension of Manikonda and Kondapur captured maximum homebuyer interest

plots priced within Rs 10 lakh. Maximum deals were recorded by the working 82% / 18% radial roads. Overall, the average and clocked around five percent growth in the average weighted professionals around the festive period. capital values grew at the rate of 83% / 17% capital prices, each, QoQ. two percent in Oct-Dec 2018 vis-à-vis The rental market experienced buoyancy and recorded a two percent growth 70% / 30%

Jul-Sep 2018. Nallagandla, a housing locale along NH-48, deserves a special in the average leasing values, YoY. HITEC City and Manikonda emerged 87% / 13% mention owing to its rising popularity. Being an affordable haven in as the most popular rental markets and posted eight percent hike in the proximity to the financial district and having a plethora of academic average rentals, each, YoY. Nizampet also mushroomed as a promising centres such as the in its proximity, rental housing destination with a five percent increase in rental rates. While 47% Nallagandla has emerged as a favoured destination among buyers IT professionals drove the rental demand in the former locations, student 49% 40% 39% Oct-Dec 2018 Jul-Sep 2018 looking for affordable properties. The average weighted capital values community helped Nizampet gain popularity. in Nallagandla noted a three percent growth, QoQ, and are pegged at * Graph depicts the availability of residential apart- Rs 4,850 per sq ft. ments wrt other property types in the city along with the distribution of under-construction and ready stock of residential apartments in respective micromarkets

8% 8%

BUDGET-WISE SUPPLY OF PROPERTIES DEMAND SUPPLY 5% 5% 5% 5% 4% 3% 3% 3% 2% 3% 3% 1% -6% -2% 32% 16% 33% 30% 28% 14% 1% 16% 28% 0% 0% 0% -1% -12% 26% 5% 27% -10% -12% -16% 8% -9% 24% 23% 21% 5% 21% 18% 20% 18% -3% -3%

-3% 15% 5% 18% 18% 16% 7% 10% 10% 16% 25% 25% 30% 30% 27% 10% 13% 15% 21% 7% 16%

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 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 Rs 1 Crore Rs 1 Crore and Above Manikonda City HITEC Kondapur Jubilee Hills Miyapur Gachibowli Kukatpally Appa Junction Nizampet Hills Banjara

* %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 FIND BEST OPTIONS TO CAPITAL VALUES RENTAL VALUES buy, sell, rent property Locality Oct-Dec 2018 Locality Oct-Dec 2018 BUY SELL RENT PROPERTY

Alkapuri 4250 Ameerpet 13 Appa Junction 4500 Appa Junction 13 4060 Attapur 11 Bandlaguda 3100 Banjara Hills 17 Banjara Hills 7600 Begumpet 14 Beeramguda 2400 Chandanagar 14 Begumpet 4840 Gachibowli 19 Price trends and 4200 Himayat Nagar 17 Mobile App property advice Chandanagar 4000 HITEC City 20 on Android platform Gachibowli 5600 Jubilee Hills 18 and iOS Gajulramaram 3450 Kondapur 15 4500 Kukatpally 15 Genuine Himayat Nagar 5700 Madhapur 19 Over 8.2 lakh listings with HITEC City 6050 Madinaguda 12 property photographs Jubilee Hills 6460 Manikonda 14 listings 4500 13 Kondapur 5200 Miyapur 12 Kothaguda 5700 13 Kukatpally 4800 Nizampet 11 LB Nagar 3600 15 More than Madhapur 6470 12 1.5 lakh Madinaguda 4200 projects Manikonda 3850 Mehdipatnam 4100 Miyapur 4100 3200 Nallagandla 4850 5300 Narsingi 4400 Nizampet 3400 CONTACT US Pragati Nagar 3450 0120 4879400 Sanath Nagar 5400 Monday - Friday Shaikpet 5850 9:30 AM to 6:30 PM IST 4520 Email: [email protected] Tolichowki 3750

*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