Bangalore 2018 April - June

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INSITE REPORT bangalore 2018 April - June

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CBO’s Desk

The positive impact of groundbreaking policy reforms - Real Estate (Regulation and Development) Act and Goods and Services Tax (GST) – is seeming to bear some fruit in FY 2018- Contents 2019. Marked by a gradual reduction in unsold inventory, a rise in enquiries in affordable housing segment and the return of new launches, the beginning of the fiscal year is hinting From CBO’s Desk Maneesh Upadhyaya Chief Business Officer towards a slow but steady revival. 03 CBO’s perspective on current market 99acres.com The quarter recorded a quantum jump of almost 50 per cent in new residential launches to reach 50,100 units. Affordable National Outlook housing led the supply graph, up by about 100 per cent, QoQ, in 04 Snapshot of real estate ambience Pune, Hyderabad, Delhi NCR, Chennai, Mumbai Metropolitan across top 8 metro cities Region, Bangalore and Kolkata. Inventory levels, on the other hand, dropped by 10-30 per cent, YoY, across metros. RERA- Market Indicators approved projects commanded a significant share of the 05 Changes in capital rates and inventory residential demand, evident from a healthy upswing status QoQ; and rental values YoY in the timeshare on RERA-registered projects on 99acres.com. Realty stakeholders are gung-ho Market Movers about the upcoming festive quarter, which News that impacted Bangalore’s might see a resurgence in end-user 06 realty market in Apr-Jun 2018 demand and sales volume. 99acres Outlook Methodology 07 99acres’ perspective on current market The Insite Report by 99acres.com captures 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 Apr-Jun 2018 Metropolitan Region (MMR), Bangalore, 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 Apr-Jun 2018. 99acres India’s No.1 Property Portal INSITE : BANGALORE 5 MARKET INDICATORS

Capital Values Rental Values Supply Bangalore ˄ ˄ ˅ Delhi NCR ˄ Mumbai ˄ ˄ ˅ Chennai ˄ ˅ Pune ˄ ˅ Hyderabad ˄ ˄ ˅ Kolkata ˄ Ahmedabad ˄ ˄ ˄ * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com NATIONAL OUTLOOK HOME BUYING SENTIMENT IN FOCUS The realty landscape witnessed a fleeting calm even as enquiries and sales recorded a slight uptick in most metro cities this quarter. While the RERA ANNIVERSARY non-formation of a RERA-body marred buyer sentiment in Kolkata and Hyderabad, the approaching ‘Aadi’ period slackened growth in Bangalore and May 1, 2018 marked the first anniversary of the Real Estate (Regulation and Development) Act, 2016 Chennai. A revival in property sales is expected in the festive quarter. [RERA]. The implementation progress varied from State to State depending on timely compliance with Central RERA rules. Kerala, West Bengal and the six north-eastern States are yet to implement the Act. PROPERTY PRICES Others including Karnataka, the NCT of Delhi and Tamil Nadu made snail-paced progress, tarnishing consumer sentiment. Price movement remained marginal across cities, except Hyderabad, which saw notable growth due to infrastructural overhaul and robust office-space absorption. The premium segment remained passive as affordable housing GENERAL BUYING SENTIMENT grabbed a majority share of buyer demand. Any significant deviation in Buyer confidence ameliorated for RERA-approved projects. A resurgence of fence-sitters in select pockets, average weighted capital ‘asks’ is likely to happen around Oct-Dec 2018. driven by connectivity and job opportunities, was a testimony to the reviving market. Conversion rate improved, albeit minimal. The affordable housing sector garnered maximum buyer interest, however, RENTAL LANDSCAPE RERA registration alone did not suffice to drive buyers towards under-construction properties. The rental landscape continued to remain upbeat for the seventh consecutive quarter. Rental values witnessed a notable hike across cities, PROPERTY PRICES except Delhi NCR and Pune where a pile-up of ready inventory inflicted the Enquiries resurfaced and led several housing pockets register an uptick in property prices. While market. The growth is likely to continue for a few more quarters, until home Hyderabad reported a notable rise in residential property rates, Pune and Chennai maintained status quo. buying picks up pace and sees a complete revival. Delhi NCR and Mumbai reported a price correction in the last one year due to discounts offered by developers to lure buyers back into the market. SUPPLY The hiatus in new launches amidst piling residential stock helped cities such as NEW LAUNCHES Bangalore, Mumbai, Pune, Chennai and Hyderabad rationalise inventory levels. New launches nose-dived across cities due to increased compliance under RERA. Chennai, Hyderabad and Slow-paced registrations under RERA played a key role in curtailing the saleable Kolkata reported a 50-70 percent dip in launches, YoY, largely owing to delayed notification of RERA rules. primary stock. The trend is expected to continue as no exceptional measures Delhi NCR, Mumbai, Bangalore and Pune, too, witnessed new launches coming to halt. A year later, the are being observed to fast-track RERA registrations. markets seem to have gained ground with new launches reporting an improvement, QoQ. 99acres India’s No.1 Property Portal INSITE : BANGALORE 7

99ACRES OUTLOOK Market Movers The quarter which marked the first anniversary of the most crucial reform in the real estate sector – Real Estate (Regulation and Development) Act, 2016 (RERA), Karnataka RERA mandates permanent Green Tribunal (NGT) was commissioned to saw Bangalore’s residential market reporting an increment in sales volume which approval of projects probe into the infringement of the Varthur surpassed the previous year levels by huge margins. With an outstanding unsold Starting April 2018, Karnataka RERA Lake, people continued to occupy the inventory of 70,000 units at the beginning of the quarter, the average property mandated developers to seek permanent temporary sheds around the Bellandur Lake. prices maintained status quo in Apr-Jun 2018. approvals before advertising projects. In another incident, residents moved to the A few project launches were a testimony to the actively regaining market. So far, RERA issued provisional certificates High Court against the encroachment on the Locations such as Kanakapura Road in the South and Varthur and Belathur in the to all applicants. The move has tightened the Pattandur Agrahara Lake. East witnessed large-scale project launches from Category A developers. Majority string on several developers. Bangalore has new launches were restricted to the Rs 30-60 lakh price bucket as high-end, and a huge share of projects awaiting sanction in Protests against project delays luxury landscapes continued to suffer on account of piling stock. the State. mar sentiment Inordinate delays in completing infrastructure The fast-paced commercial office space absorption and low vacancy levels Bangalore realty goes digital and residential projects got Bangalore remained Bangalore realty’s growth drivers. The rental market, too, benefitted as Post relaunching the Bangalore Development residents livid. While in one of the instances, Q1 2018 witnessed absorption of more than 1.62 lakh sq ft of office space. Increased Authority (BDA) website, the government a group of homebuyers protested against BDA transparency and accountability instilled by RERA and GST seemed to smother the has opened an online portal for payment of for missing the 2015 deadline of the Gunjur volatility in Bangalore real estate. The market is anticipated to hit a lull in the next property tax. In tandem with the E-governance Housing project, in another, residents quarter due to the ‘inauspicious’ period of Aadi (monsoon) between July and August, department, BDA is set to launch five more dissented over the two-year delay in before picking up the pace in the festive months of October and November. online services pertaining to the issuance completing the underpass at the of Occupancy Certificate, approval of plans, Hosakerehalli Cross. transfer of Khata and amalgamation and extension of BDA plots in the forthcoming quarter.

Lake encroachment becomes Price Movement in Key Micro-markets ceaseless The unremitting talks on clearing lake LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE encroachments across Bangalore proved Whitefield 4,500 - 5,600 2% 8% futile as most water bodies faced serious environmental concerns. While the National Electronic City 3,400 - 4,500 0% 7% JP Nagar 3,700 - 6,100 -1% 0% Hennur 4,600 - 5,900 3% 0% Yelahanka 4,200 - 5,300 0% 3% Ramamurthy Nagar 3,800 - 4,400 -1% 0% Silk Board 4,000 - 5,100 0% 16% Marathahalli 4,500 - 6000 -2% 6% Kaggadasapura 3,700 - 4,400 4% 7% Raja Rajeshwari Nagar 3,500 - 4,500 1% 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 Recording a healthy uptick in demand, KEY HIGHLIGHTS SUPPLY OF APARTMENTS sales volume and supply in the UC RTM DEMAND UC RTM SUPPLY form of new launches, Bangalore’s The quarter witnessed buyers flocking towards under-construction units, Developers restricted new launches to a ticket price of Rs 60 lakh and real estate market displayed all the a segment snubbed by them since the implementation of GST last year. below owing to an oversupply of nearly 20 percent in premium housing signs of a revival. The city recorded a The come-back of ‘pre-launch’ surged enquiries for the segment. With category, across zones. significantly high traction for affordable developers pocketing all approvals and buying a completion timeline of In the North, developers were primarily seen focusing on offloading inventory located in proximity to the 3-4 years under RERA, it became possible to allow sale of homes at existing inventory. While sales volume remained subdued, the rental job-generating IT and other office competitive prices, offering a resurgence opportunity to investors. landscape flourished, especially along the Thanisandra Main Road. The 85% / 15% hubs in East and South Bangalore. The East and South zones remained the market-bearers as maximum belt, which swarmed with ready inventory lying vacant for the last few Registrations under RERA remained the

enquiries, sales and launches concentrated here. Stretches such quarters, attracted the tenant community on the back of the recent social 79% / 21% prime focus of developers resulting in as Kanakapura Road and Bannerghatta Road in the South and infrastructure boost as several schools opened in the vicinity. Thanisandra more than a 1,000 apartments getting Sarjapur Road in the East garnered maximum traction with new project and Jakkur, along the Thanisandra Main Road, clocked an 8-10 percent hike approved this quarter. 81% / 19%

launches in the price bracket of Rs 5,700-6,000 per sq ft. Varthur in rental prices, YoY. The capital market in the North remained undeterred by 80% / 20% and Belathur in the East, too, witnessed the launch of a few projects in the lack of sales and maintained status-quo this quarter. the budget range of Rs 4,200-4,700 per sq ft. Proximity to the IT hubs of Whitefield in the East and Electronic City in the South, coupled Towards the western quadrant, connectivity woes continued to play a spoiler. with the expanding metro connectivity, remained the prime Housing pockets connected by metro such as Vijaynagar, Nagarbhavi, growth benefactor for locales in these regions, which clocked a modest Basaveshwara Nagar and Raja Rajeshwari Nagar posted a capital growth between one and four percent, each, QoQ. 44% capital appreciation in Apr-Jun 2018 over Jan-Mar 2018. 64% 40% 59% Apr-Jun 2018 Jan-Mar 2018

* 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 10% 8% 8% 6% 6% DEMAND SUPPLY 38% 39% 38% 3% 3% 3% 28% 28% 28% 30% 2 % 27% 2% 26% 2% 0% 0% 2% 0% 16% 16% 16% -2% 0% 0% -2% 9% 8% 8%

27% 10% 10% 10% 10% 26% 26% 19% 22% 25% 16% 16% 16% 7% 8% 8%

Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun Apr-Jun Jan-Mar Apr-Jun 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 -6% 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 8v% Hennur Mahadevpura Kadugodi Banashankari Whitefield Thanisandra City Electronic Yelahanka Marathahalli Hormavu

* %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 CAPITAL VALUES

Locality Apr-Jun 2018 Locality Apr-Jun 2018 Locality Apr-Jun 2018 Locality Apr-Jun 2018

Akshaya Nagar 5000 Kadugodi 4450 AECS Layout 20 JP Nagar 17 Arekere 5300 Kaggadasapura 4275 Akshaya Nagar 15 Kadugodi 15 Babusapalaya 3400 Kalyan Nagar 4950 Arekere 17 Kaggadasapura 17 Banashankari 6225 Kengeri 4075 Banashankari 17 Kalyan Nagar 17 Banaswadi 5325 Kodichikkanahalli 4000 Banaswadi 17 Kengeri 12 Bannerghatta 5775 Koramangala 9650 Basavangudi 23 Koramangala 27 Basavangudi 9400 KR Puram 4400 Begur 15 KR Puram 14 Basaveshwara Nagar 6775 Kundalahalli 5575 Bellandur 21 Kumaraswami Layout 15 Begur 4000 Mahadevpura 5750 Billekahalli 18 Kundalahalli 19 Bellandur 6200 Malleshwaram 11500 Bommanahalli 16 Mahadevpura 20 Benson Town 9475 Marathahalli 6000 Bommasandra 12 Malleshwaram 26 Brookefield 5900 Nagarbhavi 4525 Brookefield 19 Marathahalli 20 BTM Layout 5625 Nagavara 6275 BTM Layout 19 Mathikere 15 Budigere 4900 Padmanabhanagar 5150 Cooke Town 23 Murugeshpalya 19 Cooke Town 8800 Panathur 5700 Cox Town 25 Nagarbhavi 14 Cox Town 7350 Raja Rajeshwari Nagar 4500 CV Raman Nagar 17 Nagavara 15 CV Raman Nagar 5600 Rajaji Nagar 12500 Doddanekundi 18 Panathur 20 Electronic City 4400 Ramamurthy Nagar 4150 Doddathoguru 15 RT Nagar 15 Frazer Town 9625 Richmond Town 11300 Domlur 26 Raja Rajeshwari Nagar 13 Gottigere 4050 RMV Extension 6800 Electronic City 15 Rajaji Nagar 20 Gunjur 4250 RT Nagar 5500 Frazer Town 24 Ramamurthy Nagar 14 Harlur 5950 Sahakara Nagar 6000 Gottigere 12 Richmond Town 31 HBR Layout 5350 Sanjay Nagar 6850 HBR Layout 17 Sahakara Nagar 16 Hebbal 7300 Singasandra 4100 Hebbal 16 Sarjapur 15 Hegde Nagar 5675 Subramanyapura 4550 Hennur 17 Singasandra 15 Hennur 5325 TC Palaya 5400 Hoodi 18 Subramanyapura 13 Hoodi 5600 Thanisandra 5700 Horamavu Agara 14 TC Palaya 13 Hormavu 4325 Ulsoor 9950 Hormavu 16 Thanisandra 17 HSR Layout 6075 Uttarahalli 4300 HSR Layout 21 Ulsoor 23 Hulimavu 4900 Varthur 4475 Hulimavu 15 Uttarahalli 13 Indira Nagar 9650 Vidyaranyapura 4300 Indira Nagar 26 Vidyaranyapura 13 Jakkur 5600 Vijayanagar 5700 ITPL 18 Vijayanagar 17 Jalahalli 5725 Whitefield 5600 Jakkur 14 Whitefield 19 Jayanagar 10867 Yelahanka 5100 Jalahalli 16 Yelahanka 14 JP Nagar 5425 Yeshwanthpur 7500 Jayanagar 21 Yeshwanthpur 20

*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 IND BEST OPTIONS TO BUY SELL RENT PROPERTY buy, sell, rent property

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