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INSITE
REPORT
2018 HYDERABAD
October-December

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From CBO’s Desk

The year 2018 marked the ‘settling down’ phase for Indian real
estate, which had been battling with unremitting challenges ranging

Contents
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

03 From CBO’s Desk

Maneesh Upadhyaya
Chief Business Officer beneficiary of the rebounding housing demand. 99acres.com data
CBO’s perspective on current
99acres.com showed that homes priced within Rs 60 lakh garnered more than
market
seventy percent of the demand in top eight metros. Average property

04
prices across metros maintained status-quo with a few aberrations
National Outlook
in cities such as Pune, where a number of micro-markets recorded
Snapshot of real estate ambience
price corrections on the back of meek sales. Hyderabad emerged
across top 8 metro cities
as one of the top performing metros with a consistent rise in home
values starting April 2018.

05
Market Indicators
Changes in capital rates and inventory The current year is expected to continue seeing gradual
status QoQ; and rental values YoY recovery and reap returns of increased regulations in
the sector. With fly-by-night developers completely

06
Market Movers shrugged out of the market, buyers having a voice
News that impacted Hyderabad’s in the form of RERA and homes becoming
realty market in Oct-Dec 2018
affordable by the day, unit sales are
expected to grow further from here.

07 99acres Outlook
99acres’ perspective on current
market
Methodology
The Insite Report by 99acres.com captures
Financing crunch for builders,
however, may be a potential
dark cloud.
the quarterly capital trends and the annual

08
Hyderabad rental analysis of residential apartments
Key highlights - Hyderabad’s capital in key real estate markets – Delhi NCR, Mumbai
and rental market in Oct-Dec 2018 Metropolitan Region (MMR), Bangalore,
Pune, Chennai, Hyderabad, Kolkata and

10
Annexures 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.
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MARKET INDICATORS

DELHI NCR

NATIONAL OUTLOOK
HOME BUYING SENTIMENT KOLKATA
While buyer sentiment improved manifold, sales were impacted by
AHMEDABAD
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.
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 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.

RENTAL LANDSCAPE
The growth of the rental market continued unabatedly in Oct-Dec 2018. The BANGALORE CHENNAI
Capital Values
trend is likely to continue until the capital market undergoes a complete
Rental Values
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 Supply
increased by a modest one percent due to oversupply of residential units.
Increase by 2-4 percent
Increase by 0-1 percent
SUPPLY Status quo
Though the absorption of residential units dipped, QoQ, the reduction in
Decrease by 0-1 percent
the inventory pile-up across cities spelt good news. New projects, although
restricted, remained inclined towards affordable housing segments, accounting Decrease by 2-4 percent
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.
* Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com
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99ACRES OUTLOOK
Market Movers An upsurge in the housing deals, infrastructure developments, and commercial
expansion defined the health of Hyderabad’s realty sector in Oct-Dec 2018. Sales
Infrastructure overhaul on the cards have been identified. Majority of volume reported a marked improvement of 30 percent in Q4 2018 vis-à-vis Q4
The State government has announced an these structures are located in areas 2017; particularly after the city gained political stability. State government’s efforts
infrastructure makeover plan worth Rs 50,000 of Banjara Hills, Panjagutta, Kukatpally, towards boosting connectivity via elevated corridors, radial roads and new metro
crore. The prime focus of the development will Begumpet, Alwal, and LB Nagar. links also helped improve market sentiment.
be stormwater drains, roads, and sewerage
Increased office space demand from In contrary to the burgeoning demand, supply remained erratic. Except for a few
system in urban and rural areas. The existing
launches in West Hyderabad, new supply suffered on the back of the State elections
Strategic Road Development Plan (SRDP) global giants
and poor implementation of Telangana RERA (TRERA). Lack of awareness amongst
will also be fast-tracked and various flyovers, The global corporate giant, Microsoft has
developers about the registration process under TRERA significantly impacted the
skywalks and junctions will be developed to leased four lakh sq ft of office space in
launch of new housing units. Small and stand-alone developers, who are yet to
ease traffic near HITEC city. HITEC City along with a 54-acre campus in
come in terms with the regulatory act, adopted a wait-and-watch approach. Only
Gachibowli. The Xander Group also expanded
category A developers were seen ahead of the curve and moved seamlessly with
Ameerpet-HITEC City metro inches its footprints in the city and signed a deal
the law. Despite timeline extensions, around 140 projects were registered under
closer to completion worth Rs 2,550 crore with a local developer.
TRERA till December 2018.
The soon-to-be-operational, Ameerpet-HITEC The group not only plans to develop
City metro stretch will not only bring the West but also acquire 4.5 million sq ft office
Plotted developments along the NH-48 garnered healthy buyer interest. Investors
and the East zones of the city closer, but space in the city. Holistically, the
seem to be focusing on plotted developments in the wake of slow-paced
improve the realty sentiment of the adjoining developments will generate
implementation of TRERA. The trend is likely to continue in the ensuing quarters.
housing clusters. Key micro-markets that are approximately one lakh job
With supply being put on the back burner and demand growing at a steady pace,
likely to benefit from the development include opportunities in the city and
property prices are expected to go north. A pool of RERA-certified projects will
Jubilee Hills, Maduranagar, Yousufguda and will eventually elevate
help in tailoring the unmet demand and trigger the necessary price correction,
the IT hubs of HITEC City and Madhapur. housing demand.
particularly in areas such as Miyapur, HITEC City and Banjara Hills.

Over half of the structures violate

building norms Price movement in key micro-markets
Approximately, 50 percent of the properties
LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE
in Hyderabad have reportedly been flouting
the approved building plans. From the Nizampet 2,800-3,400 -1% 6%
construction of additional floors to non- Manikonda 3,500-4,300 5% 7%
compliance with the norms, multiple issues
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 KEY HIGHLIGHTS SUPPLY OF APARTMENTS
remained vibrant in Oct-Dec 2018.
UC RTM DEMAND UC RTM SUPPLY
Despite a fleeting lull caused by the Demand for residential apartments remained bullish across the city, Invariably, 2 BHK units priced between Rs 60 lakh and Rs 80 lakh have been
State elections, the city’s real estate pushing property values go north in Oct-Dec 2018 vs. the previous the prime choice of homebuyers in Hyderabad. However, the quarter ending
landscape displayed resilience in quarter. Barring a few micro-markets, almost 75 percent of the tracked December saw a marked shift in the investor interest towards mid-income
the backdrop of expanding metro localities in Hyderabad registered an upward price movement. properties ranging from Rs 40 lakh to Rs 60 lakh.
connectivity, augmented commercial
West Hyderabad, also acknowledged as the IT hub of the city, remained Plotted developments also regained momentum. Areas such as Shankarpally

82% / 18%
leasing, proposed Regional Ring
the most sought-after housing belt. Areas such as HITEC City, and Shamshabad witnessed increased popularity for small-sized residential

83% / 17%
Road (RRR) and the extension of
Manikonda and Kondapur captured maximum homebuyer interest plots priced within Rs 10 lakh. Maximum deals were recorded by the working

70% / 30%
radial roads. Overall, the average
and clocked around five percent growth in the average weighted professionals around the festive period.

87% / 13%
capital values grew at the rate of
capital prices, each, QoQ.
two percent in Oct-Dec 2018 vis-à-vis The rental market experienced buoyancy and recorded a two percent growth
Jul-Sep 2018. Nallagandla, a housing locale along NH-48, deserves a special in the average leasing values, YoY. HITEC City and Manikonda emerged
mention owing to its rising popularity. Being an affordable haven in as the most popular rental markets and posted eight percent hike in the
proximity to the financial district and having a plethora of academic average rentals, each, YoY. Nizampet also mushroomed as a promising
centres such as the University of Hyderabad in its proximity, rental housing destination with a five percent increase in rental rates. While

49%

40%

47%

39%
Nallagandla has emerged as a favoured destination among buyers IT professionals drove the rental demand in the former locations, student
Oct-Dec 2018 Jul-Sep 2018
looking for affordable properties. The average weighted capital values community helped Nizampet gain popularity.
in Nallagandla noted a three percent growth, QoQ, and are pegged at * Graph depicts the availability of residential apart-
ments wrt other property types in the city along with
Rs 4,850 per sq ft.
the distribution of under-construction and ready stock
of residential apartments in respective micromarkets

8% 8%

BUDGET-WISE SUPPLY OF PROPERTIES

DEMAND SUPPLY
5% 5% 5% 5%
4%
3% 3% 3%

-6%
2%
3% 3% 1%

-2%

32%

16%
33%

30%

28%

14%
-12%

16%
28%

1%
0%

-10%
0%

-12%

-16%

26%
0% -1%

27%

5%
8%
24%
-9%

23%

21%

21%

5%
18%
20%

18%
-3%

15%
-3% -3%

18%

16%
25%

30%

27%

16%

10%
10%

13%
Appa Junction

15%

21%
16%

5%
7%
7%
Banjara Hills
Jubilee Hills
Manikonda

Gachibowli

Kukatpally
HITEC City

Kondapur

Nizampet

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
Miyapur

Capital Rental 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

* %change represents quarterly capital movement and yearly rental movement * Graph depicts the fluctuation in supply wrt demand for residential properties in various budget categories
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Annexures
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CAPITAL VALUES

Locality Oct-Dec 2018

RENTAL VALUES

Locality Oct-Dec 2018

BUY, SELL, RENT PROPERTY buy, sell, rent property
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
Price trends and
Mobile App property advice
Chandanagar 4000 HITEC City 20 on Android platform
Gachibowli 5600 Jubilee Hills 18 and iOS

Gajulramaram 3450 Kondapur 15

Hafeezpet 4500 Kukatpally 15
Genuine
Himayat Nagar 5700 Madhapur 19
Over 8.2 lakh listings with
HITEC City 6050 Madinaguda 12
property photographs
Jubilee Hills 6460 Manikonda 14 listings
Kokapet 4500 Mehdipatnam 13
Kondapur 5200 Miyapur 12
Kothaguda 5700 Nallakunta 13
Kukatpally 4800 Nizampet 11
LB Nagar 3600 Somajiguda 15
More than
Madhapur 6470 Tolichowki 12
1.5 lakh
Madinaguda 4200 projects
Manikonda 3850
Mehdipatnam 4100
Miyapur 4100
Nagole 3200
Nallagandla 4850
Nanakramguda 5300
Narsingi 4400
Nizampet 3400
CONTACT US
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9:30 AM to 6:30 PM IST
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Email: content@99acres.com
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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