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HYDERABAD July – December 2015
Demand outstrips supply for
the second straight year
RESIDENTIAL
While demand holds steady,
residential supply is at its 5 year low
ANNUAL LAUNCHES AND ABSORPTION TREND
8,000
12,000
16,000
20,000
24,000
2010 2011 2012 2013 2014 2015
Launches Absorption
HENCE, UNSOLD INVENTORY AT
ITS LOWEST LEVEL SINCE 2010
Sharp fall in new launches AND
STEADY SALES reduces inventory
pressure
MICRO-MARKET SPLIT OF SALES
25,000
30,000
35,000
40,000
H2 2011 H2 2012 H2 2013 H2 2014 H2 2015
No
. o
f u
nso
ld u
nit
s
32,700
31,500
Sharp fall in new launches and
steady sales volume reduces
inventory pressure
However, H2 2015 sees a trend
reversal in terms of
launches; 11% growth Y-o-Y
H2 TREND OF LAUNCHES AND ABSORPTION
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
H2 2011 H2 2012 H2 2013 H2 2014 H2 2015
Launches Absorption
But launches still less than
half of their 2012 heydays
West & North dominate in
new launches; East
neglected
While new launches jump 3.5x in North
Hyderabad, it still accounts for just 15%
of the city’s launches
-
1,000
2,000
3,000
4,000
Central East North South West
H2 2014 H2 2015
85%
250%
33%
MICRO-MARKET SPLIT OF LAUNCHED UNITS
East suffers due to lack of
employment opportunity and poor
connectivity
-
200
400
600
800
1,000
1,200
1,400
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015
No
. o
f u
nit
s
LAUNCHES IN EAST HYDERABAD
HYDERABAD OFFICE MARKET
CONTINUES ITS UPWARD
CONSOLIDATION
OFFICE
Demand stays robust as supply tapers
down for the second straight year
ANNUAL TREND OF NEW COMPLETION AND ABSORPTION
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2011 2012 2013 2014 2015
mn
sq
ft
New Completions Absorption
Reducing vacancy levels cause surge
in rental growth
30
32
34
36
38
40
42
44
6%
8%
10%
12%
14%
16%
18%
20%
2011 2012 2013 2014 2015
Ren
ts (
INR
. p
sf)
Vacan
cy %
Vacancy Rents
ANNUAL RENT & VACANCY TREND
H2 2015 WITNESSES HIGHEST
HALF-YEARLY DEMAND FOR
OFFICE SPACE IN HISTORY
3.1 mn sq ft of space was absorbed
in H2 2015
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
H2 2012 H2 2013 H2 2014 H2 2015
mn
sq
ft
New completions Absorption
NEW COMPLETION AND ABSORPTION TREND DURING H2
KEY Takeaways
RESIDENTIAL
STEADY DEMAND AND REDUCING UNSOLD
INVENTORY COUPLED WITH SALES PRESSURE
WILL SOON ENCOURAGE DEVELOPERS TO
INCREASE SUPPLY
OFFICE
REDUCING VACANCY LEVELS WILL CONTINUE TO
PUSH UP RENTAL GROWTH RATES
HYDERABAD July – December 2015
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