Bangalore 2019 January-March

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INSITE REPORT bangalore 2019 january-March

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From CBO’s Desk

With sales volume and new launches beginning to improve, Jan-Mar 2019 attested the recovery mode for Indian real estate. Barring Chennai and Kolkata, where demand-supply mismatch Contents and RERA inefficiencies kept the sentiment low, all other metros reported improvement in housing demand and posted marginal hikes in average property values. Interestingly, Hyderabad, riding the From CBO’s Desk Maneesh Upadhyaya Chief Business Officer wave of commercial expansion and competitively priced inventory, CBO’s perspective on current 03 outperformed other cities by scoring a three percent hike in average market 99acres.com weighted capital ‘asks’, QoQ. Ambiguities pertaining to the exclusion of ITC benefits from GST on under-construction units kept prospective National Outlook buyers uncertain about the real benefit of GST reduction. 04 Snapshot of real estate ambience across top 8 metro cities Noticeably, MMR tops the inventory overhang charts with over 2 lakh residential units waiting for buyers. Delhi NCR follows closely, Market Indicators where around 70 percent of the 1.42 lakh unsold units are located in 05 Changes in capital rates and inventory Noida and Greater Noida. The total unsold units across top eight status QoQ; and rental values YoY metros stand at around 6.5 lakh with the least in Hyderabad.

While the sector awaits the results of General Elections Market Movers 2019 and further progress towards PMAY (U), the News that impacted Bangalore’s 06 realty market in Jan-Mar 2019 financing crunch faced by a section of builders could be a serious thorn in an otherwise 99acres Outlook positive outlook for FY 2019-20. Methodology Affordable sector is likely to see 07 99acres’ perspective on current market The Insite Report by 99acres.com captures new supply which would cater to the colossal demand in the quarterly capital trends and the annual the segment. Bangalore rental analysis of residential apartments 08 Key highlights - Bangalore’s capital in key real estate markets – Delhi NCR, Mumbai and rental market in Jan-Mar 2019 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 Jan-Mar 2019. 99acres India’s No.1 Property Portal INSITE : BANGALORE 5 MARKET INDICATORS

DELHI NCR

NATIONAL OUTLOOK

HOME BUYING SENTIMENT KOLKATA Home buying sentiment remained upbeat; however, uncertainty regarding AHMEDABAD the actual benefit of the revised GST excluding ITC component, and the upcoming General Elections deferred home sales and new launches. 99acres.com data reveals that 45 percent of the demand is for affordable homes priced within Rs 50 lakh. MUMBAI

PROPERTY PRICES PUNE Despite improving sales, property rates maintained status quo in Delhi NCR, Chennai, Pune and Kolkata, and scaled up by a marginal one percent in HYDERABAD Bangalore, Mumbai and Ahmedabad, QoQ. Hyderabad led all cities with a three percent rise in average property values. Improved buying sentiment and trimming unsold inventory might propel prices in the subsequent quarters.

RENTAL LANDSCAPE The rental market gained on account of cautious buyer approach for yet BANGALORE CHENNAI Capital Values another quarter. Excess ready stock in Gurgaon and Greater Noida kept rental Rental Values ‘asks’ under check in Delhi NCR. Other metros reported a three percent uptick in rental values, each, YoY. The growth in the segment is likely to continue for Supply a few more quarters until the capital landscape recovers completely. Increase by 2-4 percent Increase by 0-1 percent SUPPLY Status quo Limited new launches led to improved absorption of residential stock across Decrease by 0-1 percent cities. Unsold inventory levels dipped by 10-20 percent in Delhi NCR, Mumbai, Bangalore and Chennai between H2 2018 and H2 2017. Hyderabad and Decrease by 2-4 percent Ahmedabad saw inventory stock reducing by up to 40 percent. The average ‘quarters to sell’ (QTS) now stand at 10.2, as against 11.2 a year ago. * 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 The Jan-Mar 2019 quarter saw a burgeoning residential market in Bangalore with the sale of over 15,000 housing units. Upcoming infrastructure projects, especially Metro Phase 2 expansion and widening of Hosur-Laskar Road. The the expanding metro network, helped keeping the market sentiment upbeat. gains momentum State also plans to execute several new Ready units continued to be the homebuyers’ first choice. Even as enquiries for With the settlement of land acquisition projects worth Rs 8,015 crore under the ‘Nava under-construction units posted a hike in Jan-Mar 2019, the city reported negligible hurdles for the proposed depots, the work on Bengaluru Kriya Yojana’’. transactions in the segment owing to the much-awaited revision in the GST regime. the 72 km-long stretch of the Namma Metro While the GST rate cut from 12 to five percent on the under-construction segment Phase 2 has begun. The 128 km-long metro Road widening projects underway The much-awaited widening of the cheered homebuyers, confusion prevailed over Input Tax Credit (ITC), which led line is anticipated to become operational by Tannery Road from 40 ft to 80 ft has finally buyers to adopt a wait-and-watch approach until April 2019. Surplus inventory, 2024. As a part of Phase 2A project, the State commenced, benefitting the commuters majorly in the under-construction luxury segment, restricted price growth in the city has also approved the Outer Ring Road (ORR) in East Bangalore and those travelling to to a negligible one percent, QoQ. line, connecting Central Silk Board Junction to Kempegowda International Airport. Also, the KR Puram and KR Puram to Kempegowda. East and South Bangalore bagged maximum enquiries owing to their proximity land acquisition process has been initiated to the IT corridors, improving metro connectivity and ample housing inventory. for the widening of the 3.6 km-long Begur Land conversion process goes online Despite the Quarter-to-Sell (QTS) the residential stock in the city coming down to Road, connecting Bannerghatta Road The launch of a simplified affidavit-based 10.3 from 10.6 last year, the city has around 93,000 unsold housing units. online system for land-use conversion will to Electronics City. reduce paperwork and expedite the process Like other metro cities, Bangalore displayed a shortfall of almost 20 percent in duration. Now, the time taken to convert land the supply of affordable homes, i.e. homes priced within Rs 40 lakh. The addition use pattern will be two months, as against six of 50,000 affordable units under PMAY (U) in the State might help the city bridge months to a year earlier. this gap. This along with the quick implementation of revised GST rates, timely execution of upcoming infrastructure projects, and faster approval under RERA Infra projects to begin on would ensure a realty revival for Bangalore defence land Bruhat Bengaluru Mahanagara Palike (BBMP) has received 11 acres of defence Price movement in key micro-markets land to expedite multiple road infrastructure LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE projects such as the construction of alternate stretch from Kavalbyrasandra Main Road Whitefield 4,800-6,400 0% 6% to Modi Garden, development of road from Electronic City 3,600-4,800 1% 7% Ejipura Ring Road to Sarjapur Ring Road JP Nagar 5,000-5,700 3% 8% Yelahanka 4,200-5,400 0% 2% Ramamurthy Nagar 3,700-4,400 3% 7% Marathahalli 4,900-6,600 1% 6% Kaggadasapura 3,900-4,600 2% 7% RT Nagar 5,000-6,000 1% 2% Raja Rajeshwari Nagar 3,800-4,700 -1% 5% Jayanagar 8,500-10,900 0% 6%

* 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 The year 2019 started on a positive KEY HIGHLIGHTS SUPPLY OF APARTMENTS note for Bangalore’s real estate UC RTM DEMAND UC RTM SUPPLY market with healthier sales volume, In line with the previous quarters, East and South Bangalore continued popularity charts, recording a five percent spike in property prices, each, QoQ. consistent housing demand and to garner maximum housing demand and sales across the city. However, the suburban areas of Bangalore such as Marathahalli in the East improved number of new launches Housing hubs such as Whitefield, Marathahali, Kadugodi and Varthur recorded a negligible surge in property values. A popular hub in the South, than the previous quarter. While the in the East; and JP Nagar, Kudlu Gate, Bommanahalli and Hosur Uttarahalli, saw prices dipping by a percent in Jan-Mar 2019 vs. Oct-Dec 2018. ambiguities pertaining to GST rates Road in the South received maximum enquiries from the homebuyer community in the first quarter of 2019. The rental landscape remained the prime gainer due to the availability of fresh

kept property price hike limited to a 92% / 8% inventory across the IT hubs of East and South Bangalore. The expanding percent in the city, QoQ, Bangalore 90% / 10% While affordable and mid-income housing categories accounted metro connectivity also played a key role in boosting the rental market in the recorded the second highest sales for almost 65 percent of the total housing demand, a dip in the city. Kadugodi from East Bangalore topped the market with 11 percent growth in India with over 15,000 units sold supply of such apartments by almost 25 percent marred the buying in average rental values, YoY. Other prime localities, including Doddathoguru in Q1, 2019. The rental landscape sentiment. To trim the demand-supply mismatch, developers reduced

and Hulimavu from South, and Nagavara and Hebbal from North, garnered 84% / 16% continued to narrate a happy tale 85% / 15% the average unit sizes in newly-launched projects to match the ‘ask’ an upsurge of 10 percent, each, in average rental ‘asks’ in Jan-Mar 2019 vs. with an uptick in average ‘ask’ by price in localities of North and South Bangalore such as Hennur, Jan-Mar 2018. three percent, YoY. Thanisandra, Hebbal, Devanahalli. All these areas are well-connected to the Kempegowda International Airport and the Outer Ring Road. On the commercial leasing front, a dip in the supply of Grade A office spaces 40% 61% 60% in prominent markets such as Whitefield and Electronic City, and robust 40% The residential pockets of the eastern belt such as CV Raman Nagar, demand from the IT/ITeS and start-up sectors are anticipated to lead to an Jan-Mar 2019 Oct-Dec 2018 Varthur and Gunjur, along with Kudlu Gate in the South, topped the upward revision in commercial rental values by the year-end. * Graph depicts the availability of residential apartments wrt other property types, QoQ, along with the distribution of under-construction and ready stock

10% BUDGET-WISE SUPPLY OF PROPERTIES

8% DEMAND SUPPLY 6% 39% 38%

6% 6% 21% 20% 35% -2% 17% 3% 3% 3% 3% 3% -5% -16% -6% 28% 32% 28% 27% 3% 30% -21% 1% 1% 28% 3% 0% 1%

2% -19% 0% 0%

0% 0% 4% 0% 2% 17% 16% 15% 1% 11% -2% 12% 9%

11% 11% 10% 10% 16% 18% 22% 23% 22% 26% 10% 18% 18% 16% 9% 8% 8%

Jan-Mar Oct-Dec Jan-Mar Jan-Mar Oct-Dec Jan-Mar Jan-Mar Oct-Dec Jan-Mar Jan-Mar Oct-Dec Jan-Mar Jan-Mar Oct-Dec Jan-Mar 2019 2018 2018 2019 2018 2018 2019 2018 2018 2019 2018 2018 2019 2018 2018 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 Rajaji Nagar Banashankari JP Nagar HSR Layout Hennur City Electronic Thanisandra Whitefield Hebbal Koramangala

* %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 Jan-Mar 2019 Locality Jan-Mar 2019 Locality Jan-Mar 2019 Locality Jan-Mar 2019

Akshaya Nagar 5120 Jayanagar 10850 AECS Layout 20 Kadugodi 16 Banashankari 6400 JP Nagar 5545 Akshaya Nagar 14 Kaggadasapura 17 Banaswadi 5500 Kadugodi 4460 Arekere 18 Kalyan Nagar 17 Bannerghatta 5700 Kaggadasapura 4400 Banashankari 17 Kengeri 12 Basavangudi 9960 Kasavanhalli 5295 Banaswadi 18 Kodihalli 18 Begur 4500 Kengeri 4150 Basavangudi 21 Koramangala 28 Bellandur 6350 Koramangala 9950 Begur 15 KR Puram 14 Benson Town 9200 KR Puram 4635 Bellandur 20 Kumaraswami Layout 13 Billekahalli 5000 Kudlu Gate 6800 Billekahalli 18 Kundalahalli 19 Bommanahalli 4700 Kundalahalli 5525 Bommanahalli 17 Mahadevpura 20 Bommasandra 2950 Mahadevpura 5800 Bommasandra 13 Malleshwaram 26 Brookefield 5900 Malleshwaram 11860 Brookefield 19 Marathahalli 21 BTM Layout 5965 Marathahalli 6355 BTM Layout 18 Mathikere 14 Budigere 4850 Nagarbhavi 4600 Cooke Town 23 Murugeshpalya 19 Cooke Town 8700 Nagavara 6437 Cox Town 23 Nagarbhavi 14 CV Raman Nagar 6000 Padmanabhanagar 5000 CV Raman Nagar 18 Nagavara 16 Dodda Nekkundi 5100 Panathur 5810 Doddathoguru 16 Panathur 19 Doddathoguru 3700 Raja Rajeshwari Nagar 4670 Domlur 26 RT Nagar 15 Electronic City 4635 Rajaji Nagar 11945 Electronic City 16 Raja Rajeshwari Nagar 12 Frazer Town 9000 Ramamurthy Nagar 4370 Frazer Town 23 Rajaji Nagar 19 Gottigere 4600 RT Nagar 5640 Gottigere 12 Ramamurthy Nagar 14 Gunjur 4550 Sahakara Nagar 6130 HBR Layout 17 Richmond Town 31 Harlur 6150 Sanjay nagar 7145 Hebbal 17 Sahakara Nagar 16 HBR Layout 5460 Singasandra 4250 Hennur 17 Sarjapur 14 Hebbal 7720 Subramanyapura 4790 Hoodi 18 Singasandra 15 Hegde Nagar 5400 TC Palaya 4300 Horamavu Agara 14 Subramanyapura 14 Hennur 5350 Thanisandra 5350 Hormavu 15 TC Palaya 13 Hoodi 5840 Uttarahalli 4500 HSR Layout 21 Thanisandra 17 Horamavu Agara 4400 Varthur 5000 Hulimavu 17 Ulsoor 27 Hormavu 4575 Vidyaranyapura 4500 Indira Nagar 25 Uttarahalli 12 HSR Layout 6160 Vijayanagar 5720 ITPL 18 Vidyaranyapura 13 Hulimavu 5087 Whitefield 5700 Jakkur 14 Vijayanagar 17 Indira Nagar 10100 Yelahanka 5250 Jalahalli 16 Whitefield 19 Jakkur 5420 Yeshwanthpur 7900 Jayanagar 22 Yelahanka 15 Jalahalli 5550 JP Nagar 17 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 FIND BEST OPTIONS TO BUY SELL RENT PROPERTY buy, sell, rent property

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