PropIndex | Magicbricks

Residential Market Insights

Steady residential market growth on the back of solid fundamentals

In the first quarter of 2020, Hyderabad's housing market remained competitive on all parameters. The consistentlyoutperforming commercial sector in Hyderabad successfully delivered demand in the residential sector. Strongconnectivity through the Outer Ring Road and metro rail network have also fueled real estate development in primeareas like Gachibowli and Kukatpally.

Developers increasingly focused on peripheral locations like Kompally, Adibatla, Tellapur, and Patancheru, as ORRconnects them with IT hubs, International Airport, and emerging employment destinations. The demand for newprojects by prominent developers with good track record continued to support prices, though the market favored theready segment, where prices have climbed a phenomenal 71% in the last 5 years.

5 YearChange YoY QoQ

1.4%12.0%71.0%

5 YearChange YoY QoQ

0.4%3.7%43.2%

"Comparatively lowerprice hike for theunder-constructionproperty segment overthe ready to move type,with QoQ uptick of

0.4%"

HyderabadJan-Mar 2020

Parameters India Hyderabad

Demand+ +5.3% +8.1%Supply++ -0.8% +5.2% Price Index+++ +0.1% +1.4%

"A rise of 12% YoY and1.4% QoQ price growthindicative of strongdemand in the city"

Notes:Above parameters represent QoQ change in Q1 2020 atIndia and city level + volume of property searches ++ volume of active listings +++ change in the weighted average price

Source: Magicbricks Research

Aliens Group

Incor Infrastructure

Aparna Constructions

Lansum Etania

Lodha Group

NCC Urban Infra

SMR Holdings

Lanco Hills

PBEL Developers

Sumadhura Infracon 10

9

8

6

6

5

4

3

2

1

Sumadhura Acropolis Gachibowli

JB Residency Manikonda

Aliens Space Station Gachibowli

Chitrapuri Colony Manikonda

Karthikeya ApartmentsKukatpally

NMR Apartments Aminpur

My Home Vihanga Gachibowli

Lanco Hills Manikonda

Aarambh Township Chandanagar

My Home Abhra Madhapur

Average changes in prices for localities in various price segments

Market Dynamics

Ready to Move Price Index

Under Construction Price Index

- Despite prices increasing 71% in thelast 5 years, Hyderabad continues tooffer a sizable but shrinking affordablehousing market ('< INR 5,000 per sqft'segment). Though future price increasesin CBD are likely to push demand toperipheral localities in north-west

- State government set to increase themarket value (used to calculate StampDuty), by 10-30%, increasing the cost ofpurchase, and may dampen the demand

- Hyderabad metro Phase II to connectthe peripheral localities, and likely tobenefit prominent localities like Alwal,Patancheru, and Hayatnagar

"Prices of both RM andUC properties in the'less than INR 4,000 persqft' segment fell inQ1 2020, while pricesfor the premiumproperties rose"

Key Trends to Watch Out

2014

2015

2016

2017

2018

2019

2020

1,000

2,000

3,000

4,000

5,000

6,000

Avg. Price psf

2014

2015

2016

2017

2018

2019

2020

1,000

2,000

3,000

4,000

5,000

6,000

Avg. Price psf

Price Bracket (INR/sqft)

< 4000 4,000-5,000 5,000-6,000 > 6,000

RM UC RM UC RM UC RM UC

-0.9%

-1.8%-1.4%

1.8%

0.4%

2.0%

4.1%

2.2%

Key Projects based on consumersearches

Key Developers based on activelistings

Average Price INR per sqft

Average Price INR per sqft

The above table represents the top developers by share ofactive listings on Magicbricks website in Q1 2020

Source: Magicbricks Research

Note:The above table represents the top projects by consumerpreference on Magicbricks website in Q1 2020

Source: Magicbricks Research

Notes:1. Ready to move price index represents the weighted average price of completed properties on Magicbricks website as on March 20202. The trend line represents the average prices of dominant asset class in each locality of the city. Source: Magicbricks Research

Note:1. Under-construction price index represents the weighted average price of under-construction properties on Magicbricks website as on March 20202. The trend line represents the average prices of dominant asset class in each locality of the city.

Source: Magicbricks Research

Note:Above table represents the price changes for Ready to move (RM) and Under construction (UC) properties on Magicbricks website in Q1 2020 for various price buckets

Source: Magicbricks Research

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Above 3 BHK3%

2 BHK56%

1 BHK6%

DEMAND

Demand Supply Analysis Hyderabad | Jan-Mar 2020

High consumers preference for affordable property

More than 50 % of property searches performed for 2BHK configurationRapid IT development and relativeaffordability sustain Hyderabad'sresidential demand

Hyderabad market is fairly balanced in terms ofresidential demand and supply. With themajority of the searches being in the 2 and 3BHK configurations, the consumers are lookingfor localities with good infrastructure and withaffordable properties.

"Slight demand-supply mismatchobserved for properties in 'less thanINR 4,000 per sqft' segment, as

prices continued to climb in the city,shrinking the city's affordability pie"

- The proposed Regional Ring Road (RRR) toconnect all the outskirt localities of Hyderabad,bringing affordable supply to the city inmid-term. This is expected to address the city'sincreasing demand-supply mismatch for theaffordable segment.

- Consumers continued to look for affordabilityin Q1 2020, with more than half of the buyerslooking for 2 BHK options.

- Less than 20% of the city's consumer demandis towards properties costing more than INR6,000 per sqft, making the city non-conducivefor luxury project developments.

- Due to the proximity of main employment hubs,easy access for ORR and metro trainsconnectivity, Miyapur, Gachibowli, Kukatpally,Hitech City and Kondapur continue to be the top5 micro-markets.

Rank of 90 ..1 to 7

Top Micromarkets by consumersearches

Propensity of demand and supply in terms of searches andlistings by localities

Above 3 BHK5%

3 BHK40%

2 BHK51%

1 BHK4%

SUPPLY

5,000-6,00015% 4,000-5,000

21%

> 6,00029% < 4,000

35%

SUPPLY Price buckets in INR per sqft

Top Micromarkets by active listings

5,000-6,00014%

4,000-5,00024%

> 6,00019%

< 4,00043%

DEMAND Price buckets in INR per sqft

Notes:1. Demand represents property searches on Magicbricks website during Q1 2020, segregated by Bedroom, Hall, Kitchen (BHK) configuration2. Supply represents active listings on Magicbricks website during Q1 2020, segregated by BHK configuration

Source: Magicbricks Research

.Notes:1. Demand represents property searches on Magicbricks website during Q1 2020, segregated by price buckets2. Supply represents active listings on Magicbricks website during Q1 2020, segregated by price buckets

Source: Magicbricks Research

Note:1. Above map depicts the key localities of the city, with the size of the bubble depicting demand (consumer preference) /supply (active listings) forproperties in the localities on Magicbricks website in Q1 20202. This is an interactive map available on Magicbricks.com under Propindex section.Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard.

Source: Magicbricks Research

Note:1. Top micro-markets of the city, ranked by their active listings onMagicbricks in Q1 20202. Price ranges represent the range of avg locality prices in themicromarket in INR per sqft.

Source: Magicbricks Research

Note:1. City's top micro-markets (locality clusters with similar real-estatedynamics), ranked by number of searches on Magicbricks in Q1 20202.Price ranges represent the range of avg locality prices in themicromarket in INR per sqft.

Source: Magicbricks Research

Alkapur Township

Vanasthalipuram

Rajendra Nagar

Pragathi NagarPatancheruvu

Appa junction

Shastripuram

Quthbullapur

Bowenpally

Gachibowli

Jeedimetla

Upparpally

Kukatpally

Ghatkesar

Pocharam

Nizampet

Kompally

Adibatla

Miyapur

Tellapur

Balapur

Kollur

UppalAbids

ECIL

© OpenStreetMap contributors

Demand/SupplyDemand

Miyapur 2250 - 5750

Gachibowli 3650 - 8650

Kukatpally 3550 - 8250

Nallaganla-Tellapur 2150 - 7050

Kondapur 5050 - 7700

Hitech City 5800 - 9700

Medchal Highway 3200 - 4950

11

22

33

44

75

86

57

Micro-Market Price Range Rank Rank Q1-20 Q4-19

Miyapur 2250 - 5750

Gachibowli 3650 - 8650

Kukatpally 3550 - 8250

Hitech City 5800 - 9700

Kondapur 5050 - 7700

Mehdipatnam 3100 - 8300

Nallaganla-Tellapur 2150 - 7050

11

22

33

104

85

46

77

(Price in INR per Sqft)

Micro-Market Price Range Rank Rank Q1-20 Q4-19

Page 2© magicbricks.com

Note:1. Size of the bubble depicts demand, measured by volume of property searches in localities in Q1 20202. Color of the bubble represents price change in Q4 2019, with green color representing price increase and red color price decrease.3. This is an interactive map available on Magicbricks.com under Propindex section.Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard.

LocalityAvg.Price

PriceChange

Adibatla

Kollur

Bollaram

Ramachandra Puram

Bachupally

Nizampet

Sainikpuri

Toli Chowki

Bandlaguda Jagir

Pragathi Nagar 0.3%

-4.3%

-5.4%

-7.5%

1.6%

3.3%

2.1%

-2.9%

-7.5%

2.0%

3,977

3,964

3,874

3,869

3,781

3,564

3,192

3,185

2,841

2,193

< INR 4,000 psf INR 4,000-5,000 psf INR 5,000-6,000 psf > INR 6,000 psf

Price Analysis Hyderabad | Jan-Mar 2020

- Most of the localities witnessed a price increase in the quarter, with the maximum price increments happening in the localities in proximity to IT hubs andhaving great connectivity via public transport

- Posh localities like Kukatpally (-4.8%) and Jubilee Hills (-7.5%), were the major localities witnessing a price decline in Q1 2020 Source: Magicbricks Research

LocalityAvg.Price

PriceChange

Appa junction

Boduppal

Beeramguda

Tellapur

Madinaguda

Rajendra Nagar

Hafeezpet

Peerzadiguda

Kokapet

Begumpet

Vanasthalipuram

Gachibowli Phase 3

Nallagandla

Narsingi

Kukatpally -4.8%

4.7%

2.7%

1.7%

7.5%

3.7%

5.0%

-5.4%

6.4%

-0.7%

7.5%

1.9%

-0.2%

-0.4%

0.5%

5,998

5,927

5,926

5,894

5,843

5,807

5,739

5,676

5,535

5,359

5,357

5,309

5,240

5,156

5,128

LocalityAvg.Price

PriceChange

Himayath Nagar

Kondapur

KPHB

Gachibowli

Shaikpet

Financial District

Nanakram Guda

Banjara Hills

Hitech City

Madhapur

Jubilee Hills -7.5%

4.9%

6.9%

7.5%

4.8%

3.1%

2.3%

4.0%

-4.1%

2.2%

-0.1%

9,242

7,751

7,749

7,697

7,168

7,059

6,956

6,871

6,773

6,355

6,091

Note:1. Above is the list of major localities of the city, with information about their average prices and QoQ price changes in Q1 2020. This is an interactive table available on Magicbricks.com under Propindex section.2. The locality prices are calculated by averaging the prices of all properties in a locality in multi-storey and builder floor segment, after removing the outlier properties that might distort the overall prices.3. The four tables above categorize the localities in various price buckets.4. The color of the numbers represent the price change in Q1 2020, with green color representing price increase, red color price decrease, and grey as neutral. Source: Magicbricks Research

Disclaimer: The data represented above is compiled by MagicBricks from multiple sources. MagicBricks gives no warranty, express or implied, as to the accuracy, reliability, and completeness of any information and does not acceptany liability on the information which may or may not be subject to change from time to time due to Governmental or non Governmental regulations/directions.

Q1 2020 Price changes for the city's major localities

Locality Avg. PricePrice

Change

Uppal

GajularamaramSuchitra Circle

Kompally

AttapurCherlapalli

RampallyMehdipatnam

Puppalaguda

MiyapurAlkapur Township

Nagole

DammaigudaChandanagar

ManikondaBadangpet -0.1%

1.5%-5.2%

7.5%

3.7%2.7%

-3.4%

4.6%3.6%

0.0%7.5%

-4.7%

7.2%-0.2%

3.3%

0.6%

4,987

4,8014,745

4,731

4,7034,675

4,644

4,5964,576

4,5034,321

4,284

4,1584,152

4,142

4,016

Surabhi Arora | Head of Research Devendra Lohmor | Chief Manager Ankur Upadhyay | Data Manager Rikitha Murthy | Sr. Research Analystsurabhi.arora@magicbricks.com devendra.lohmor@magicbricks.com ankur.upadhyay@magicbricks.com rikitha.murthy@magicbricks.com

Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard.

For more information and research related queries, please contact:

Vanasthalipuram7.5%

Himayath Nagar-0.1%

Rajendra Nagar-0.7%

Suchitra Circle-0.2%

Appa junction0.5%

Peerzadiguda-5.4%

Dammaiguda7.5%

Cherlapalli7.5%

Begumpet3.7%

Rampally0.0%

Kompally7.2%

Adibatla2.0%

Tellapur1.9%

Attapur-4.7%

Nagole3.7%

Kollur-7.5%

© OpenStreetMap contributors

-7.5% 7.5%

-5% -2.5% 0% 2.5% 5%

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