HYDERABAD RESIDENTIAL SEPTEMBER 2019 MARKETBEAT 96% 60% 34% SHARE OF WESTERN QUADRANT SHARE OF LUXURY SEGMENT DECREASE IN LAUNCHES IN NEW LAUNCHES (Q3 2019 ) IN NEW LAUNCHES (Q3 2019) (Q- O - Q) HIGHLIGHTS RENTAL VALUES AS OF Q3 2019* Average Quoted QoQ YoY Change Short term Submarket Launches continue to decline in Q3, expect growth Rent (INR/Month) Change (%) (%) outlook from Q4 High-end segment New launches adding to 2,100 units were recorded in Q3, a 34% q-o-q decline. Established Banjara Hills 58,000-1,50,000 0% 0% residential catchments such as Kondapur, Kukatpally, Shaikpet and Patancheru in the western Madhapur, Gachibowli 35,000-70,000 0% 0% quadrant accounted for 95% of the unit launches this quarter. Delays in environmental clearances for Kukatpally 20,000-40,000 0% 0% the past 12-15 months have resulted in project deferments across the city. As such, developers are Himayathnagar 20,000-36,000 0% 0% focused on completing ongoing projects ahead of schedule. Office growth in Gachibowli and along Mid segment the ORR has driven numerous land transactions in Kokapet, Narsingi, Tellapur, Nallagandla, 0% Gopanpally etc. over the last 2-3 years and several such parcels earmarked for residential Banjara Hills 22,000-30,000 0% development are getting ready for launch within in the next 12 months. Meanwhile, with the State Madhapur, Gachibowli 18,000-27,500 0% 2% Environment Impact Assessment Authority (SEIAA) set in place earlier this quarter, has started Kukatpally 14,500-22,500 0% 4% expediting approvals, which should give a fillip to new launch activity starting Q4. Himayathnagar 13,500-18,000 0% 0% Increase in share of high-end projects Hyderabad is witnessing a steady stream of high-end projects over the last 3 years. In Q3, units launched in the high-end segment held a 60% share of total units. Around 30% of these launched units have already been sold, indicating a healthy appetite for such projects from end users. These CAPITAL VALUES AS OF Q3 2019* launches in the high-end segment were recorded in and around the prime IT corridor in areas such Average Quoted QoQ YoY Short term as Kondapur, Shaikpet and Kukatpally. As land values firm up further, the increased traction in the Submarket Rate (INR/sf) Change (%)Change (%) outlook commercial office segment is aiding the launch of high-end residential projects. We can expect more High-end segment such launches in the future. Extended Suburbs driving capital value growth Banjara Hills 8,000-12,000 0% 2% 5,500-7,800 Rents and capital values were largely range bound across most prominent residential sub-markets for Madhapur, Gachibowli 0% 6% both the mid and high-end segments. The extended suburbs in the western corridor are witnessing Kukatpally 4,700-6,500 0% 2% robust demand as the residential catchments around the prime IT corridors are expanding and Mid segment remain the most preferred. The capital values in the extended suburbs areas such as Tellapur, Madhapur, Gachibowli 4,000 – 5,600 0% 7% Kokapet, Miyapur, Bachupally, Bandlaguda, Nallagandla recorded an increase of about 2-4% q-o-q Kukatpally 3,500 – 4,800 0% 6% and are anticipated to see further growth in prices. The government, mindful of the demand in this Himayathnagar 3,500 – 4,600 0% 1% A Cushman & Wakefield region, has decided to auction about 500 acres of land, mainly in the form of larger layouts suitable Miyapur, Nizampet 3,000 – 4,350 2% 5% Research Publication for commercial and residential developments in Tellapur, Miyapur, Mokila, Kokapet and Uppal areas. This is expected to aid a comprehensive growth of the commercial and residential zones in the city. www.cushmanwakefield.com HYDERABAD RESIDENTIAL MARKETBEAT SEPTEMBER 2019 Rohan Sharma SIGNIFICANT PROJECTS LAUNCHED IN Q3 2019 Director Research Services BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE**(INR/SF) Tel: +91 124 4695555 [email protected] Sumadhura Horizon Kondapur Sumadhura Group 486 6,000 Shreemukh Namitha Homes Izzatnagar 290 11,000 Namitha 360 Life Pvt. Ltd. Aditya Athena Shaikpet Sri Aditya Homes Pvt. Ltd. 522 6,500 SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q3 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS EXPECTED COMPLETION Accurate Wind Chimes Narsingi Accurate Developers 334 Q4 2022 Aparna One Shaikpet Aparna Constructions 496 Q4 2021 SMR SMS Vinay Casa Carino Rajendranagar SMR Holdings 143 Q4 2023 SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q3 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS UNIT SIZE (SF) My Home Avatar Phase I Narsingi My Home Constructions. 1112 1300-1900 Dukes Galaxy Banjara Hills Muppa Projects India Pvt. Ltd. 66 1900-2000 Data collated from primary and secondary resources. Estimations are subject to change * Rental and capital values have been depicted only for key submarkets ** Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc. The above values for high-end segment are for units typically of 1,200-3,000 sf 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 Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. www.cushmanwakefield.com 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..