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Strategic Partner : 1 HYDERABAD RESIDENTIAL REAL ESTATE MARKET

HYDERABAD - Kotak Mahindra Bank€¦ · Hyderabad - Residential Real Estate Market 2 Demand in Hyderabad has seen an uptick in the demand in last two years. The sales in primary builder

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Page 1: HYDERABAD - Kotak Mahindra Bank€¦ · Hyderabad - Residential Real Estate Market 2 Demand in Hyderabad has seen an uptick in the demand in last two years. The sales in primary builder

Strategic Partner :

1

HYDERABADRESIDENTIAL REAL ESTATE MARKET

Page 2: HYDERABAD - Kotak Mahindra Bank€¦ · Hyderabad - Residential Real Estate Market 2 Demand in Hyderabad has seen an uptick in the demand in last two years. The sales in primary builder

Hyderabad - Residential Real Estate Market

2

Demand in Hyderabad has seen an uptick in the demand in last two years. The sales in primary builder market has grown by 13% CAGR in last two years while the unsold inventory has witnessed a muted growth of 4% annually.

Average property prices have grow by 7.5% in last two years and are faring around Rs. 4700-4800 per sqft of saleable area.

Gachibowli, Kondapur and Manikonda have been the most preferred locations among the buyers in last 12 months. These area are mainly flocked by IT professionals and investors.

Existing transport network consists of metro rail network (3 lines), multi modal transport system, BRT/LRT network and highways/road networks.

Other than these, there are multiple phase of metro, inner and outer ring roads and various bridges proposed to ease out the growing traffic in the city.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2016 2017 2018

Pri

ce (

psq

ft)

Hyderabad Gachibowli Kondapur Manikonda

Source: Liases Foras

Page 3: HYDERABAD - Kotak Mahindra Bank€¦ · Hyderabad - Residential Real Estate Market 2 Demand in Hyderabad has seen an uptick in the demand in last two years. The sales in primary builder

Product Typology

1 1200-1300 1500-1750 3000-3250

2 1300-1400 1750-2000 1750-2000

3 1100-1200 2000-2250 4000-4500

3

12 3

3BHK2BHK

Villas

1BHK2%

2BHK30%

3BHK47%

4BHK3%

Villas16%

Others2%

Product Wise

Based on the last 12 months’ sales, 3BHK flats are the most preferred product among buyers, followed by 2BHK and Villas.

Buyers mostly picked up units between 1500-1750 sq.ft. (3BHK), 1200- 1300 sq. ft.(2 BHK) and 3000-3250 sq.ft. (Villas).

Cost range of Rs. 50 Lacs to Rs. 1.0 Crore has the maximum demand compared to all other segments.

5%

20%

50%

18%

8%

<30 Lac 30 - 50 Lac 50 - 1Cr. 1 - 2 Cr. > 2Cr.

Cost range wise percentage share of Sales

Page 4: HYDERABAD - Kotak Mahindra Bank€¦ · Hyderabad - Residential Real Estate Market 2 Demand in Hyderabad has seen an uptick in the demand in last two years. The sales in primary builder

Trend in New Launches

4

Nallagandla is the top gainer in terms of maximum new launches in the last 12 months followed by Manikonda and Kokapet.

Maximum new launches are in the cost range of Rs. 50 Lacs to Rs.1.0 Crore.

Amongst the new launches, 3 BHK is the most preferred product as can be seen by sales and supply distribution followed by 2BHK apartments.

0%

37%

41%

3%

19%

Sales in New Launch

1BHK 2BHK 3BHK 4BHK Others

2%

31%

47%

5%

15%

New Launch Supply

1BHK 2BHK 3BHK 4BHK Others