INSITE 99Acres India’S No.1 Property Portal

www.99acres.com

BANGALORE RESIDENTIAL MARKET UPDATE JULY-SEPTEMBER 2019

Market Sentiment INSITE 99acres India’s No.1 Property Portal

FROM CBO’S DESK

With the news of an impending provide financing to the many stalled economic slowdown clouding the affordable and mid-income housing market, end-user and investor activity projects in the country cheered plunged evidently in residential real the market. The Government will estate in Jul-Sep 2019. This clubbed contribute Rs 10,000 crore, which with multiple insolvency proceedings is anticipated to benefit around and the on-going financial crunch that 350,000 housing units. Further, most developers are struggling with consecutive repo rate cuts and the kept overall sentiment submissive. mandate around repo rate linked Average weighted prices of residential home loans are seen as housing apartments witnessed meager demand lifters. The impact of alterations quarter on quarter, barring these policy announcements will Hyderabad and Ahmedabad. Rentals, be more evident in the ensuing too, grew insignificantly in the last one festive quarters. year. An inventory overhang of 10 lakh units along with 5.6 lakh delayed homes across the country kept price points under check. On the supply front, the top eight metros saw the launch of around 486 housing projects in Jul-Sep 2019, about 30 percent down from Apr-Jun 2019.

While the quarter did not have many laurels to talk about, the Finance Maneesh Upadhyaya Minister’s announcement regarding Chief Business Officer the creation of a special fund to 99acres.com NATIONAL MARKET OUTLOOK INDICATORS

Capital Values Rental Values Supply

HOME BUYING SENTIMENT Home buying sentiment remained weak due to developer defaults and the NBFC crisis, which dried up funding and slowed the completion of already delayed projects. Around 5.6 lakh residential projects are reportedly stalled across the country. Developers, nevertheless, anticipate the festive DELHI NCR season to lift housing demand up.

PROPERTY PRICES Metro cities witnessed marginal upticks in property prices. KOLKATA Hyderabad and Ahmedabad took lead with a two percent AHMEDABAD surge, QoQ. A few good deals in certain popular housing hubs contributed to the said price hike. The industry does not foresee any major deviations in the prices of new or MUMBAI ready residential stock in the ensuing quarters, too. PUNE

HYDERABAD RENTAL LANDSCAPE Rental ‘asks’ grew by an average of 2-3 percent across metros, YoY. The segment is expected to benefit from the prolonged caution exercised by homebuyers. Rental hubs along transit corridors are expected to see better demand and surging ‘rates’ in the next couple of quarters. Co-living is fast emerging BANGALORE CHENNAI as a trend, especially in Bangalore, Hyderabad and Mumbai.

SUPPLY Metro cities witnessed the launch of around 486 projects in Jul-Sep 2019, a 33 percent dip versus Apr-Jun 2019. Economic slowdown and liquidity crunch forced builders to hold back new launches. Government’s efforts to boost the Public Sector 99acres Banks and NBFCs by injecting funds worth Rs 1 lakh crore may India’s No.1 Property Portal propel housing supply in the forthcoming quarters. * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com BANGALORE’S REALTY AT A GLANCE

Property Rental Prices ‘Asks’

Price movement in key micro-markets

Localities Jul-Sep 2019 QoQ % Change YoY % Change Whitefield 4,710 - 6,030 2% 5% Demand Supply Electronic City 3,690 - 4,840 2% 4% JP Nagar 4,710 - 6,330 2% 9% Yelahanka 4,500 - 5,440 2% 2% Silk Board 4,250 - 5,610 0% 2% Marathahalli 4,970 - 6,290 1% 1% * Property prices represent quarterly change * Rental ‘asks’ represent yearly change * Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com Bellandur 5,610 - 6,750 2% 4% Thanisandra 5,010 - 5,820 -2% 0% Kaggadasapura 3,860 - 4,590 1% 4% Raja Rajeshwari Nagar 4,280 - 4,990 2% 5%

* Average ‘ask’ rates have been calculated as per listings posted on 99acres.com

INSITE : Bangalore 7 99acres DEMAND & SUPPLY India’s No.1 Property Portal DYNAMICS 36% Affordable Housing 99ACRES‘ 16% OUTLOOK

With 5,400 projects awaiting possession, Bangalore’s realty sentiment remained tepid. While the number of project launches in Jul-Sep 2019 grew to 70 from 50 in Apr-Jun 2019, sales remained low. Unsold inventory 39% stood at 70,000 and resultantly, the average property Mid-income prices surged by a marginal one percent, QoQ. Housing The rental graph scored a two percent spike in average ‘asks’, YoY. Localities with good social infrastructure and 50% connectivity in the western and southern belts remained the first choice of the tenant community.

North and East Bangalore captured 80 percent of the total share of new launches priced between Rs 60 lakh and Rs 1.20 crore. Many Category A builders focused on plotted developments over apartments to improve their profit margins. Notably, several projects were re-launched after registering under Real Estate 24% (Regulation and Development) Act (RERA).

The inauspicious ‘aadi’ period, slow-paced progress of Namma metro, water crisis, ban on subvention Luxury scheme and low office space absorption marred Housing the realty sentiment. In an effort to improve RERA’s effectiveness, the authority has resolved about 30 percent complaints so far. Further, the construction of two lakh budget housing units under PMAY (U) by 2022 34% may also help abridge the demand-supply gap in the affordable housing category. Such measures may help in restoring the homebuyers’ confidence in the under- construction segment.

* Graph depicts demand and supply of residential inventory across budget segments in the studied quarter Demand Supply INSITE : Bangalore 9 KEY HIGHLIGHTS

Among all zones, the housing hubs of North and East Bangalore such as Whitefield, Sarjapur Road, Hennur and Horamavu remained popular for new projects falling in the budget segment of Rs 60 lakh – Rs 1.20 crore. The city, however, recorded an unmet demand of about 30 percent for homes priced within Rs 60 lakh. CAPITAL & To match the ‘ask’ price in newly launched projects, builders reduced the average unit size to about 1,300 sq ft from 1,417 sq ft in the last five years. However, the disequilibrium RENTAL in the market sustained, and the city struggled to record higher sale conversions in the last few quarters.

The influx of new inventory at a higher rate over resale 8% properties led the popular housing hubs of East Bangalore such as Panathur, Cooke Town and Ramamurthy Nagar clock maximum capital appreciation of four percent, each, in Jul-Sep 2019. The southern residential hubs, including 6% Bommanahalli, Hulimavu, Subramanyapura and Billekahalli, also recorded price appreciation of four percent, each, QoQ. 5% 5% Overall, property prices remained under check and saw a marginal increment of a percent in the studied quarter. 4% 4% The rental landscape, on the contrary, recorded a hike in 3% 3% 3% 3% average ‘asks’ by two percent, YoY. Backed by seamless connectivity and robust infrastructure, Rajaji Nagar and 2% 2% 2% 2% 2% 2% Kadubeesanahalli bagged maximum rental appreciation of eight percent, each, YoY. The popularity of paying guest accommodations and co-living spaces among the tenant community led micro-markets such as Cox Town, 0% 0% Hennur Thanisandra Mathikere, Hulimavu, Billekahalli and Bellandur Akshaya Rajaji Nagar Yelahanka Raja Uttarahalli Electronic Whitefield Hebbal Nagar Rajeshwari City post a seven percent rental hike, each, YoY. Nagar -1% Capital -2% Rental

* %change represents quarterly capital movement and yearly rental movement INSITE : Bangalore 11 99acres CONCLUDING India’s No.1 Property Portal 3% REMARKS KOLKATA 4% DELHI NCR The fear of an impending economic slowdown has impacted the market sentiment and led potential homebuyers to take a AHMEDABAD cautious stance. Although faster resolution of RERA complaints 8% is a welcome step towards re-instilling the homebuyers’ trust in the under-construction segment, the city is yet to witness any notable change in the demand curve. With the 10% developers’ efforts to reduce the average unit size to match 37% the affordability quotient, Bangalore’s housing segment might CHENNAI MUMBAI see some growth in the ensuing quarters. 11% HYDERABAD

12% PUNE 15% BUDGET-WISE BANGALORE DEMAND & SUPPLY The data depicts share of new launches across metro cities in the studied quarter

17% 16% 37% 36% 26% 29% 24% 39% 40% 43% 46% 49% 55% 53% 56% 37% 31% 50% Affordable Housing 30% 75% 31% 39% 53% 41% Mid-income Housing 39% 35% 36% 39% Luxury Housing 26% 29% 33% 46% 45% 33% 30% 30% 18% -5% 24% 34% 22% 21% 19% 21% 14% 15% 15% 15% 7% -6% Demand Supply Demand Supply Demand Supply Demand Supply Demand Supply Demand Supply Demand Supply Demand Supply DELHI NCR MUMBAI BANGALORE PUNE CHENNAI HYDERABAD AHMEDABAD KOLKATA INSITE : Bangalore 13 * Graph depicts demand and supply of residential inventory across budget segments in top eight metro cities in the studied quarter 99acres ANNEXURES India’s No.1 Property Portal

CAPITAL VALUES RENTAL VALUES RENTAL VALUES

Locality Jul-Sep 2019 Locality Jul-Sep 2019 Locality Jul-Sep 2019 Locality Jul-Sep 2019 Kadubeesanahalli 21 Akshaya Nagar 5400 Jayanagar 11200 AECS Layout 20 Kadugodi 15 Banashankari 6400 JP Nagar 5800 Akshaya Nagar 15 Kaggadasapura 16 Banaswadi 5529 Kadugodi 4520 Arekere 17 Kalyan Nagar 18 Bannerghatta 5700 Kaggadasapura 4400 Banashankari 17 Kengeri 12 Basavangudi 10400 Kasavanhalli 5250 Banaswadi 17 Kodihalli 20 Begur 4470 Kengeri 4170 Basavangudi 23 Koramangala 26 Bellandur 6470 Koramangala 10525 Begur 15 KR Puram 15 Benson Town 9900 KR Puram 4630 Bellandur 22 Kumaraswami Layout 13 Billekahalli 5500 Kudlu Gate 6710 Billekahalli 19 Kundalahalli 19 Bommanahalli 4900 Kundalahalli 5700 Bommanahalli 17 Mahadevpura 20 Bommasandra 3500 Mahadevpura 5800 Bommasandra 13 Malleshwaram 29 Brookefield 6080 Malleshwaram 11740 Brookefield 20 Marathahalli 20 BTM Layout 6000 Marathahalli 6170 BTM Layout 19 Mathikere 15 Budigere 4900 Nagarbhavi 4750 Cooke Town 24 Murugeshpalya 20 Cooke Town 9160 Nagavara 6420 Cox Town 25 Nagarbhavi 14 CV Raman Nagar 6200 Panathur 6155 CV Raman Nagar 17 Nagavara 16 Dodda Nekkundi 5100 Raja Rajeshwari Nagar 4850 Doddathoguru 15 Panathur 21 Doddathoguru 3750 Rajaji Nagar 12300 Domlur 27 RT Nagar 15 Electronic City 4700 Ramamurthy Nagar 4500 Electronic City 15 Raja Rajeshwari Nagar 13 Frazer Town 9800 RT Nagar 5400 Frazer Town 24 Rajaji Nagar 21 Gottigere 4500 Sahakara Nagar 6250 Gottigere 12 Ramamurthy Nagar 14 Gunjur 4600 Sanjay Nagar 7200 HBR Layout 18 Richmond Town 30 Harlur 6400 Singasandra 4240 Hebbal 18 Sahakara Nagar 16 HBR Layout 5200 Subramanyapura 4920 Hennur 17 Sarjapur 16 Hebbal 7700 TC Palaya 5280 Hoodi 19 Subramanyapura 13 Hegde Nagar 5620 Thanisandra 5300 Horamavu Agara 15 TC Palaya 13 Hennur 5450 Uttarahalli 4530 Hormavu 15 Thanisandra 17 Hoodi 5950 Varthur 5070 HSR Layout 22 Ulsoor 27 Horamavu Agara 4500 Vidyaranyapura 5520 Hulimavu 16 Uttarahalli 13 Hormavu 4550 Vijayanagar 5500 Indira Nagar 26 Vidyaranyapura 13 HSR Layout 6600 Whitefield 5900 ITPL 20 Vijayanagar 17 Hulimavu 5400 Yelahanka 5300 Jakkur 15 Whitefield 19 Indira Nagar 10400 Yeshwanthpur 7350 Jalahalli 16 Yelahanka 15 Jakkur 5640 Jayanagar 21 Yeshwanthpur 21 Jalahalli 5885 JP Nagar 17

*All prices are per sq ft rates *All prices are per sq ft rates INSITE : Bangalore 15 METHODOLOGY The Insite Report by 99acres.com captures the quarterly capital trends and the annual rental analysis of residential apartments in key real estate markets – Delhi NCR, Mumbai Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad. In order to assess the prevailing 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 Jul-Sep 2019. D S PS BUY SELL RENT PROPERTY

FIND BEST OPTIONS TO BUY, SELL, RENT PROPERTY

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

enuine ver . lakh listings ith property photographs listings

More than 1. lakh projects