RESIDENTIAL MARCH 2019 MARKETBEATS

70% 46% 12-16% SHARE OF NEW LAUNCHES IN SHARE OF MID & AFFORDABLE CAPITAL VALUE GROWTH IN THE WESTERN QUADRANT(Q1 2019) SEGMENTS (Q1 2019) WESTERN QUADRANT ( Y o Y )

HIGHLIGHTS Sustained growth momentum across major RENTAL VALUES AS OF Q1 2019* Average Quoted QoQ YoY Change Short term Submarket residential corridors Rent (INR/Month) Change (%) (%) outlook The healthy momentum in Hyderabad’s residential market continues on the back of RERA High-end segment implementation, strong buyer sentiment and an upbeat commercial office segment. Nearly 58,000-1,50,000 0% 0% 5,000 units have been launched this quarter, an 84% rise y-o-y. With a 70% share in new , 35,000-70,000 0% 0% launches, the Western quadrant dominated with new projects from major developers such as 20,000-40,000 0% 2% Aparna Construction and My Home Group. There are clear signs of the market picking up in Himayathnagar 20,000-36,000 0% 0% North and Eastern parts of the city, which accounted for 30% of new launches this quarter, in Mid segment areas such as Uppal, Pocharam, Bollarum and etc. Developers are preferring JD Banjara Hills 22,000-30,000 0% 0% agreements and are already exploring stalled projects with lower land valuations in growth Madhapur, Gachibowli 18,000-27,500 2% 7% corridors. More new launches are underway, and we expect nearly 10,000+ units to be Kukatpally 14,500-22,500 4% 10% launched over the next three quarters. Himayathnagar 13,500-18,000 0% 2% Rents and capital values rising A steady rise in land values over the last 2-3 years across the city is now reflecting in increased capital values. New projects are launching at a 10-15% premium on the average market price CAPITAL VALUES AS OF Q1 2019* across all segments. Sale prices have gone up by 15% y-o-y (3-4% q-o-q) in the Western quadrant, followed by a 10-12% annual increase in other parts of the city. Rentals followed a Average Quoted QoQ YoY Short term Submarket similar trend with areas closer to the IT corridor witnessing a 2-4% q-o-q rise, followed by 2-3% Rate (INR/sf) Change (%)Change (%) outlook average escalation in other localities. Co-living is gradually picking up in Madhapur and High-end segment Gachibowli, and we expect several organized players entering this space later this year. Banjara Hills 8,000-12,000 2% 5% Madhapur, Gachibowli 5,500-7,500 4% 16% A Cushman & Wakefield Demand spillover to new corridors Research Publication Healthy demand for ready-built houses backed by land availability and infrastructure Kukatpally 4,700-6,500 2% 12% development is driving residential growth radially outwards from ORR and in newer locations Mid segment across the city. Areas such as Kollur,, Nallagandla, Bandlaguda, Budwel and Madhapur, Gachibowli 4,000 – 5,400 4% 4% DATA are gaining traction with demand spillover from the Western quadrant. Metro Kukatpally 3,500 – 4,800 6% 6% INTO connectivity and upcoming projects such as elevated corridor from Uppal is driving development ACTION Himayathnagar 3,500 – 4,500 0% 0% towards Pocharam and . Similar is the case with areas further away from LB Nagar, , 3,000 – 4,000 0% 0% where metro corridor and other infra projects have reduced travel times and eased congestion. www.cushmanwakefield.com We expect the momentum to continue going forward, with prices trending higher this year. HYDERABAD RESIDENTIAL MARKETBEATS MARCH 2019

Rohan Sharma SIGNIFICANT PROJECTS LAUNCHED IN Q1 2019 Director Research Services BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE**(INR/SF) Tel: +91 124 4695555 [email protected] Aparna One Shaikpet Aparna Constructions 496 9,999 My Home Mangala My Home Constructions Pvt Ltd 1860 5,700 Incor VB City Bollaram Incor Infrastructure 1120 4,100

SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q1 2019

BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS EXPECTED COMPLETION

Eterna Gachibowli Rajapushpa Properties 219 Q1 2022 Vishnu Vistara Madhapur Vishnu Group 240 Q4 2019 Vasavi Solitiare Heights Vasavi Group 288 Q3 2020

SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q1 2019

BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS UNIT SIZE (SF) Prestige Ivy League Madhapur Prestige Constructions 349 1327-3394 Vertex Panache Gachibowli Vertex Homes Pvt Ltd. 180 1265-1945

Data collated from primary and secondary resources. Estimations are subject to change * Rental and capital values have been depicted only for key submarkets DATA ** Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc. INTO The above values for high-end segment are for units typically of 1,200-3,000 sf ACTION 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

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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.