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INSITE REPORT

2018

HYDERABAD

October-December

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From CBO’s Desk Maneesh Upadhyaya Chief Business Officer 99acres.com The year 2018 marked the ‘settling down’
From CBO’s Desk
Maneesh Upadhyaya
Chief Business Officer
99acres.com
The year 2018 marked the ‘settling down’ phase for Indian real
estate, which had been battling with unremitting challenges ranging
from political instability to colossal policy reforms. Enhanced
transparency in the real estate sector, courtesy RERA, helped
improve buyer sentiment, which subsequently pushed demand and
sales velocity up. The affordable housing sector was the biggest
beneficiary of the rebounding housing demand. 99acres.com data
showed that homes priced within Rs 60 lakh garnered more than
seventy percent of the demand in top eight metros. Average property
prices across metros maintained status-quo with a few aberrations
in cities such as Pune, where a number of micro-markets recorded
price corrections on the back of meek sales. Hyderabad emerged
as one of the top performing metros with a consistent rise in home
values starting April 2018.
Methodology
The current year is expected to continue seeing gradual
recovery and reap returns of increased regulations in
the sector. With fly-by-night developers completely
shrugged out of the market, buyers having a voice
in the form of RERA and homes becoming
affordable by the day, unit sales are
expected to grow further from here.
Financing crunch for builders,
however, may be a potential
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 Oct-Dec 2018.
dark cloud.

National Outlook

Contents

  • From CBO’s Desk
    03 CBO’s perspective on current market

  • 04 Snapshot of real estate ambience across top 8 metro cities

Market Indicators

  • 05 Changes in capital rates and inventory status QoQ; and rental values YoY

  • 06 Market Movers News that impacted Hyderabad’s realty market in Oct-Dec 2018

  • 07 99acres Outlook 99acres’ perspective on current market

Hyderabad

  • 08 Key highlights - Hyderabad’s capital and rental market in Oct-Dec 2018

  • 10 Annexures

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99 acres India’s No.1 Property Portal INSITE : HYDERABAD 5 MARKET INDICATORS DELHI NCR NATIONAL OUTLOOK

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MARKET INDICATORS DELHI NCR NATIONAL OUTLOOK HOME BUYING SENTIMENT KOLKATA While buyer sentiment improved manifold, sales
MARKET INDICATORS
DELHI NCR
NATIONAL OUTLOOK
HOME BUYING SENTIMENT
KOLKATA
While buyer sentiment improved manifold, sales were impacted by
compliance related challenges. Homebuyers in Kolkata, for instance, waited
for clarity over HIRA, and those in Delhi NCR snubbed the under-construction
segment due to uncertainty over GST rates. Bangalore, Mumbai, Pune and
Hyderabad continued displaying signs of realty revival.
AHMEDABAD
MUMBAI
PROPERTY PRICES
PUNE
Barring Delhi NCR and Kolkata, where property prices maintained status quo,
all metros registered an upward revision in property prices with Hyderabad
leading the charts with a two percent uptick, QoQ. The legacy built-up of
inventory in Delhi NCR is likely to keep prices under check in the quarters to
come. Other metro cities may see modest price hike.
HYDERABAD
RENTAL LANDSCAPE
CHENNAI
The growth of the rental market continued unabatedly in Oct-Dec 2018. The
trend is likely to continue until the capital market undergoes a complete
revival. With Kolkata in the lead, all metro cities reported an uptick in
average rental ‘asks’ by 2-4 percent, except Delhi NCR where average rentals
increased by a modest one percent due to oversupply of residential units.
BANGALORE
Capital Values
Rental Values
Supply
SUPPLY
Though the absorption of residential units dipped, QoQ, the reduction in
the inventory pile-up across cities spelt good news. New projects, although
restricted, remained inclined towards affordable housing segments, accounting
for over 40 percent of the total new inventory. While the country boasts of over
34,800 RERA-approved projects, the pace of registration remained a concern.
Increase by 2-4 percent
Increase by 0-1 percent
Status quo
Decrease by 0-1 percent
Decrease by 2-4 percent
* Capital values represent quarterly change
* Rental values represent yearly change
* Supply is basis properties listed on 99acres.com
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Market Movers

Infrastructure overhaul on the cards

The State government has announced an infrastructure makeover plan worth Rs 50,000 crore. The prime focus of the development will be stormwater drains, roads, and sewerage

system in urban and rural areas. The existing Strategic Road Development Plan (SRDP)

will also be fast-tracked and various flyovers,

skywalks and junctions will be developed to

ease traffic near HITEC city.

Ameerpet-HITEC City metro inches closer to completion

The soon-to-be-operational, Ameerpet-HITEC City metro stretch will not only bring the West and the East zones of the city closer, but improve the realty sentiment of the adjoining housing clusters. Key micro-markets that are

likely to benefit from the development include

Jubilee Hills, Maduranagar, Yousufguda and the IT hubs of HITEC City and Madhapur.

have been identified. Majority of

these structures are located in areas

of Banjara Hills, Panjagutta, Kukatpally, Begumpet, Alwal, and LB Nagar.

Increased office space demand from

global giants

The global corporate giant, Microsoft has

leased four lakh sq ft of office space in

HITEC City along with a 54-acre campus in Gachibowli. The Xander Group also expanded its footprints in the city and signed a deal worth Rs 2,550 crore with a local developer. The group not only plans to develop

but also acquire 4.5 million sq ft office

space in the city. Holistically, the developments will generate approximately one lakh job opportunities in the city and will eventually elevate housing demand.

Over half of the structures violate building norms

Approximately, 50 percent of the properties

in Hyderabad have reportedly been flouting

the approved building plans. From the

construction of additional floors to non-

compliance with the norms, multiple issues

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99ACRES OUTLOOK

An upsurge in the housing deals, infrastructure developments, and commercial

expansion defined the health of Hyderabad’s realty sector in Oct-Dec 2018. Sales

volume reported a marked improvement of 30 percent in Q4 2018 vis-à-vis Q4 2017; particularly after the city gained political stability. State government’s efforts towards boosting connectivity via elevated corridors, radial roads and new metro links also helped improve market sentiment.

In contrary to the burgeoning demand, supply remained erratic. Except for a few

launches in West Hyderabad, new supply suffered on the back of the State elections and poor implementation of Telangana RERA (TRERA). Lack of awareness amongst

developers about the registration process under TRERA significantly impacted the

launch of new housing units. Small and stand-alone developers, who are yet to come in terms with the regulatory act, adopted a wait-and-watch approach. Only category A developers were seen ahead of the curve and moved seamlessly with the law. Despite timeline extensions, around 140 projects were registered under TRERA till December 2018.

Plotted developments along the NH-48 garnered healthy buyer interest. Investors seem to be focusing on plotted developments in the wake of slow-paced implementation of TRERA. The trend is likely to continue in the ensuing quarters.

With supply being put on the back burner and demand growing at a steady pace,

property prices are expected to go north. A pool of RERA-certified projects will

help in tailoring the unmet demand and trigger the necessary price correction, particularly in areas such as Miyapur, HITEC City and Banjara Hills.

Price movement in key micro-markets

LOCALITY

AVERAGE ‘ASK’ RATE (PER SQ FT)

QOQ CHANGE

YOY CHANGE

Nizampet

2,800-3,400

-1%

6%

Manikonda

3,500-4,300

5%

7%

Beeramguda

2,400-3,100

4%

4%

Kukatpally

3,900-5,100

3%

4%

Miyapur

3,500-4,300

3%

6%

Gachibowli

4,700-5,900

3%

5%

Kondapur

4,900-5,800

5%

7%

Pragati Nagar

2,900-3,500

1%

6%

Chandanagar

4,000-5,100

5%

-8%

Madhapur

5,500-6,500

4%

12%

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

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HYDERABAD

Hyderabad’s real estate market remained vibrant in Oct-Dec 2018.

Despite a fleeting lull caused by the

State elections, the city’s real estate landscape displayed resilience in the backdrop of expanding metro connectivity, augmented commercial leasing, proposed Regional Ring Road (RRR) and the extension of radial roads. Overall, the average capital values grew at the rate of two percent in Oct-Dec 2018 vis-à-vis Jul-Sep 2018.

KEY HIGHLIGHTS

Demand for residential apartments remained bullish across the city, pushing property values go north in Oct-Dec 2018 vs. the previous quarter. Barring a few micro-markets, almost 75 percent of the tracked localities in Hyderabad registered an upward price movement.

West Hyderabad, also acknowledged as the IT hub of the city, remained the most sought-after housing belt. Areas such as HITEC City, Manikonda and Kondapur captured maximum homebuyer interest

and clocked around five percent growth in the average weighted

capital prices, each, QoQ.

Nallagandla, a housing locale along NH-48, deserves a special mention owing to its rising popularity. Being an affordable haven in

proximity to the financial district and having a plethora of academic

centres such as the University of Hyderabad in its proximity, Nallagandla has emerged as a favoured destination among buyers looking for affordable properties. The average weighted capital values in Nallagandla noted a three percent growth, QoQ, and are pegged at Rs 4,850 per sq ft.

99 acres India’s No.1 Property Portal HYDERABAD Hyderabad’s real estate market remained vibrant in Oct-Dec 2018.

Capital

99 acres India’s No.1 Property Portal HYDERABAD Hyderabad’s real estate market remained vibrant in Oct-Dec 2018.

Rental

8% 8% 5% 5% 5% 5% 4% 3% 3% 3% 3% 3% 1% 0% 0% 0%
8%
8%
5%
5%
5%
5%
4%
3%
3%
3%
3%
3%
1%
0%
0%
0%
-1%
-3%
-3%
-3%
Manikonda
HITEC City
Kondapur
Jubilee Hills
Miyapur
Gachibowli
Kukatpally
Appa Junction
Nizampet
Banjara Hills

* %change represents quarterly capital movement and yearly rental movement

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Invariably, 2 BHK units priced between Rs 60 lakh and Rs 80 lakh have been the prime choice of homebuyers in Hyderabad. However, the quarter ending December saw a marked shift in the investor interest towards mid-income properties ranging from Rs 40 lakh to Rs 60 lakh.

Plotted developments also regained momentum. Areas such as Shankarpally and Shamshabad witnessed increased popularity for small-sized residential plots priced within Rs 10 lakh. Maximum deals were recorded by the working professionals around the festive period.

The rental market experienced buoyancy and recorded a two percent growth in the average leasing values, YoY. HITEC City and Manikonda emerged

as the most popular rental markets and posted eight percent hike in the average rentals, each, YoY. Nizampet also mushroomed as a promising

rental housing destination with a five percent increase in rental rates. While

IT professionals drove the rental demand in the former locations, student community helped Nizampet gain popularity.

SUPPLY OF APARTMENTS

  • DEMAND

RTM
RTM
UC
UC
RTM
RTM

SUPPLY

   

18%

 
 
 

17%

 

/

82%

   

/

30%

83%

13%

/

 

/

87%

70%

 

49%

47%

40%

39%

Oct-Dec 2018

Jul-Sep 2018

* Graph depicts the availability of residential apart - ments wrt other property types in the city along with the distribution of under-construction and ready stock of residential apartments in respective micromarkets

BUDGET-WISE SUPPLY OF PROPERTIES

99 acres India’s No.1 Property Portal HYDERABAD Hyderabad’s real estate market remained vibrant in Oct-Dec 2018.

DEMAND

99 acres India’s No.1 Property Portal HYDERABAD Hyderabad’s real estate market remained vibrant in Oct-Dec 2018.

SUPPLY

Oct-Dec Jul-Sep Oct-Dec Oct-Dec Jul-Sep Oct-Dec Oct-Dec Jul-Sep Oct-Dec Oct-Dec Jul-Sep Oct-Dec Oct-Dec Jul-Sep Oct-Dec 2018
Oct-Dec
Jul-Sep
Oct-Dec
Oct-Dec
Jul-Sep
Oct-Dec
Oct-Dec
Jul-Sep
Oct-Dec
Oct-Dec
Jul-Sep
Oct-Dec
Oct-Dec
Jul-Sep
Oct-Dec
2018
2018
2017
2018
2018
2017
2018
2018
2017
2018
2018
2017
2018
2018
2017
Within Rs 25 Lakh
Rs 25-40 Lakh
Rs 40-60 Lakh
Rs 60 Lakh to Rs 1 Crore
Rs 1 Crore and Above
27%
-2%
25%
28%
2%
30%
33%
-6%
27%
30%
-12%
18%
28%
-12%
16%
32%
-16%
16%
26%
-10%
16%
24%
-9%
15%
20%
1%
21%
7%
16%
23%
7%
14%
21%
5%
16%
21%
10%
8%
18%
13%
5%
18%
10%
5%
15%

* Graph depicts the fluctuation in supply wrt demand for residential properties in various budget categories

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Annexures

CAPITAL VALUES

RENTAL VALUES

Locality

Oct-Dec 2018

Locality

Oct-Dec 2018

Alkapuri

4250

Ameerpet

13

Appa Junction

4500

Appa Junction

13

Attapur

4060

Attapur

11

Bandlaguda

3100

Banjara Hills

17

Banjara Hills

7600

Begumpet

14

Beeramguda

2400

Chandanagar

14

Begumpet

4840

Gachibowli

19

Boduppal

4200

Himayat Nagar

17

Chandanagar

4000

HITEC City

20

Gachibowli

5600

Jubilee Hills

18

Gajulramaram

3450

Kondapur

15

Hafeezpet

4500

Kukatpally

15

Himayat Nagar

5700

Madhapur

19

HITEC City

6050

Madinaguda

12

Jubilee Hills

6460

Manikonda

14

Kokapet

4500

Mehdipatnam

13

Kondapur

5200

Miyapur

12

Kothaguda

5700

Nallakunta

13

Kukatpally

4800

Nizampet

11

LB Nagar

3600

Somajiguda

15

Madhapur

6470

Tolichowki

12

Madinaguda

4200

Manikonda

3850

Mehdipatnam

4100

Miyapur

4100

Nagole

3200

Nallagandla

4850

Nanakramguda

5300

Narsingi

4400

Nizampet

3400

Pragati Nagar

3450

Sanath Nagar

5400

Shaikpet

5850

Tellapur

4520

Tolichowki

3750

*All prices are per sq ft rates

*Capital change depicts quarterly alterations in average ‘asks’

*Rental change depicts yearly alterations in average ‘asks’

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