Hyderabad adds zing to the opening edition of Propindex...
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Transcript of Hyderabad adds zing to the opening edition of Propindex...
Hyderabad adds zing to the opening edition of Propindex Volume III
Telangana may be debated in political and social circles and opinions may bedivided over whether it was a politically correct move. But Hyderabad’sproperty market has clearly shown that these issues need not determine thecourse of the city’s business or property markets. A whopping 11 per cent riseas compared to the national average of 2 per cent. The Price Monitor’s 10 percent rise shows the city’s growth has been across the board and fairly even.
Hyderabad was no aberration. At a time of rising inflation, slowing economyand a country headed towards general elections, the country’s real estatemarkets have shown that residential markets are dictated by soundfundamentals and realistic price. Chennai’s growth was on the back of apotisive business environment and steadily increasing stock along growthcorridors. Bangalore’s falling index value was largely because of thecorrection in values in the North zone which has pushed the city index up inan earlier quarter. Delayed infrastructure projects also got a clear thumbsdown from consumers. Positive growth stories from Ahmedabad is mirroredin its rising index values.
Does this indicate that the Indian property buyer has matured? Trends showthat with the exit of the investor and speculator, end users are driving trendsbased on sound economic growth and structured planned infrastructure.India may well be moving towards a planned growth story, at least in theproperty markets with values as the monitor of city governance.
City zones have a distinct role to play. So also do transport links. As theadvance of the metro as well as flyovers and expressways expose the lesserknown areas to access and therefore structured development, developers aremoving in with projects that attract all ends of the spectrum.
This is the 9th issue of PropIndex and 9 straight quarters of reporting marketperformance has led to Magicbricks.com building a large repository ofdata/values about property markets across cities. It shows that demandremains robust across the spectrum. The requirement at the base of thepyramid remains strong and select cities have seen the private sector cateringto these. But surprisingly for a weak economic scenario, the demand at the topof the pyramid showed robust growth in demand, fuelled by end users. High-end consumers have seen this as an opportunity to upgrade lifestyle and seekbetter, newer units with amenities to match their growing expectations. Butthe winners have been those who have managed to strike a balance betweenprice, amenities and luxury. So go ahead and invest intelligently and let ourvalues be your guide
FOREWORD
Sudhir PaiBusiness Head, [email protected]
MagicBricksPropIndexMagicBricks.comPropIndex is a tool whichempowers propertyseekers and investors withdetailed information onthe movement ofresidential apartmentprices and supply ofproperties in India. Nocredible property indexcan be a function of directvalues as the changes aregoverned by multiplefactors.
MagicBricks.comPropIndex has taken thisreality into account andproduced an index basedon listing of apartmentsand their capital andrental values on thewebsite.
MagicBricks.com has over 500,000 active propertiesposted by more than1,50,000 active users in 300cities and 10,000 localities.Our users include owners,agents and developers.
MethodologyApartment values arebased on listings onMagicBricks.com. Theseinclude multistoreyapartments and singleunits on plotteddevelopments, referred toas builder floors onMagicBricks.com.
The Index is structured in
such a way that individualproperties are aggregatedinto their respective citiesand then to the NationalIndex. Weightages forPropIndex are based on thesupply of propertieswithin the locality/city.Based on this structure,PropIndex gives a realisticpicture of trends inprice/supply acrossdifferent property marketsin each city. We have useddifferent weightages forListed Price Monitor/RentMonitor. Therefore, read asa whole, PropIndex alongwith tables provided forListed Price Monitor, RentMonitor, Yield Monitor andCapital Values, gives anexcellent perspective ofthe property marketperformance in thequarter.
While listing and itsvalues/supply provide alevel of understandinginto the market, there aremeticulous data checks toprevent aberrationscreeping into the Index.These are based onstatistical calculations,industry inputs and logicalinterpretations.
The National PropertyIndex (NPI) is indicative ofthe extent of activity aswell as price movementsacross cities and localitiesin the major cities activeon MagicBricks.com. Theindex includes the top 11
cities (these have beenchosen based on theiractivity levels) and has anindividual city report foreach of these cities. Whilethe NPI and its movementsare of interest to theexpert community ofbankers, builders andinvestors, the PropIndexhas also taken care toexplain the nuances ofindex movements at thelocality level that wouldhelp the huge base ofMagicBricks.comconsumers.
Insights into consumerdemand have beengathered through analysisof search information onthe site. This helpsunderstand the bestlocalities by demand, thetype and configuration ofunits as well as the budget-wise preferences.
The PropIndex is the resultof meticulous research atthe locality level andthrough detaileddiscussions with experts atMagicBricks.com’s offlineand online initiatives.
The Indian real estatemarket is dynamic and thePropIndex reflects thosechanges. Since it is derivedfrom a dynamic database,additions and deletions oflocalities happen as afunction of marketdynamics.
METHODOLOGY
There is a wealth of information within these pages. For better readability, we have presented some data as tablesand others as graphs. Between them, you will find how property markets have performed in the Apr-Jun 2013quarter from different perspectives – from that of capital appreciation, from a rental/yield realisationperspective and from a supply standpoint. Also in Demand Analysis section, understand what consumers look for.
We recommend that you evaluate the city report in its entirety and that will provide a rounded perspective of theperformance of the property market within each city. Here are the details of what you will find in each of the cityreports enclosed within -
1. City Property Index – This is a composite index which is a function of supply of properties as well as theaverage capital appreciation/drop in various localities of the city in the quarter. The city index is theweighted average of the average rate per square foot in that locality and the supply of properties from thatlocality. Premium localities (with higher average rate per square foot) as well as localities with higher supplyof properties will have a bigger impact on the Index. For example, if the supply of properties from apremium locality drops, that locality will end up having a lower weightage in the index which in turn willpush the Index downwards (and vice-versa). On the other hand, supply of properties remaining unchanged,the Index will be influenced by capital appreciation within the locality.
2. Listed Price Monitor – This metric shows the capital appreciation/drop within a locality and is calculatedon the basis of movement in the “average rate per square foot” within that locality. By and large, themovement in the “average rate per square foot” reflects capital appreciation/ drops. However, in a few selectcases, we have observed that the average rate per square foot moves due to a change in the mix of apartmentswithin that locality (e.g. if the ratio of premium apartments, which command a higher per square foot rate,changes over the quarter). In these few circumstances, the Listed Price Monitor will, in turn, reflect thisinput. Such changes have been explained in the text of the City Reports.
3. Rent Monitor – This reflects the rental appreciation/drop within a locality. It is calculated on the basis ofmovement in the “average rent per square foot” within that locality. By and large, the movement in the“average rent per square foot” reflects rental appreciation/drops. However, in a few selected cases, we haveobserved that the average rent per square foot moves due to a change in the mix of apartments within thatlocality (e.g. if the ratio of premium apartments, which command a higher per square foot rent, changes overthe quarter). In these few circumstances, the Rent Monitor will, in turn, reflect this input. Such changes havebeen explained in the text of the City Reports.
4. Yield Meter – Yield is the annual rate of return earned on property. The Yield Meter depicts the gross yieldpercentages across various localities. Gross yield is a ratio of average annual rental value to the averagecapital value of the property.
5. Capital Value Tables (given in Annexures) – This shows the actual range of prices within which propertieswere available in each locality in the quarter. Prices are shown in Rupees per square foot basis; these are theprevailing rates for properties in each locality.
6. Demand Analysis –This analysis of consumer demand is based on searches and requirements that usershave performed on MagicBricks.com. The top localities by demand gives an insight into consumerpeferences. The demand data has been used to arrive at various aspects of consumer requirements includingBudget-wise analysis, Property type analysis and BHK configuration analysis. This section also provides acomparison between demand and supply in the Jan-Mar, 2013 and Apr-Jun, 2013 quarters.
7. Realty News – Property market performance is also dependent on drivers outside the purview of buyingand selling. There are broadly four key drivers that determine the prospects of real estate – infrastructuresuch as water and power, transport links creating new growth corridors, policy such as rental laws, propertytax, etc and return on investment. PropIndex also focuses on news bytes that impact future prospects of realestate in the city.
GLOSSARY & DEFINITIONS
APR-JUN 2013
The National Property Index is aweighted average of supply andvalues across 11 cities in India. Inthe latest quarter (Apr-Jun 2013)the NPI witnessed a rise of 2 percent. Of the 11 cities in theapartment index, 9 have seen arise while the others registered asmall drop in the city indexvalues. Hyderabad was the biggestgainer with a whopping 11 percent rise. It was followed byChennai with 8 per cent rise,Ahmedabad and Gurgaon with 4 per cent each, Noida andGhaziabad with 3 per cent andPune and Mumbai with 2 and 1 per cent respectively. Bangaloreand Delhi registered a drop of 6 and 3 per cent respectively whilethe city index in Kolkataremained unchanged.
Historic NPI trend PropIndex has been tracking theNPI for the last nine quarters.Clearly, in spite of all theeconomic upheavals and
inconsistencies across industriesincluding real estate, the NPI hasnot dropped at any point in thelast three years. In fact, the NPIhas actually risen by 2-6 per centin each quarter since Jan-Mar2011, recording a rise of 34 points.This indicates that either demandin the market has remainedupbeat over these years or thestock in the market has remainedstrong or both. This is alsoindicative of the fact that realestate in India is always activeirrespective of the prevailingeconomic situations in thecountry. The category and value ofthe actively traded property keepsshifting according to consumersentiments.
At the national level, buyerinterest for properties pricedbetween Rs 30-50 lakh remainedrobust at 25 per cent. Bangaloreand Pune were the majorcontributors recording more than35 per cent of the total demand inthis segment across cities. Thisfact was reinforced by the hugedemand for 2BHK units across all
cities tracked. Nine out of the 11 cities witnessed maximumdemand for 2BHK units.
Read what experts predict aboutthe city’s prospects in the nextquarter. Brokers have a ear to theground. They give views on citymarkets.
n Mumbai, Gurgaon andBangalore account for45 per cent demand for3BHK units.
n Property worth betweenRs 30-50 lakhwitnessed maximumdemand q-o-q with 25 per cent.
n Buyers look for politicaland economic certainty,adopt wait and watchapproach.
IN THIS REPORT:
National Property Index...............1
Delhi.........................................4
Gurgaon...................................10
Noida & Ghaziabad................... 16
Mumbai....................................24
Pune........................................30
Ahmedabad..............................36
Kolkata...........,........................ 40
Chennai....................................46
Hyderabad................................52
Bangalore.................................58
Annexures.................................65
NATIONAL PROPERTY INDEX (NPI)
VOL 3, ISSUE 1; APR-JUN, FY 2013-14
APR-JUN 2013
propindex.magicbricks.com
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NATIONAL PROPERTY INDEX
l The Rs 30-50 lakh budget rangecontinued to be the mostpreferred category with 25 percent buyer demand. Bangaloreand Pune were the majorcontributors.
l Demand for premium housingpriced above Rs 1 crore saw adrop of 5 per cent in buyerdemand during the Apr-Mar2013 quarter.
l 2BHK apartments remained themost supplied configuration insix out of 11 cities.
l A rise in the city index in 9 outof 11 cities during the quarter,indicated an upbeat propertymarket across cities.
The Ahmedabad City Indexregistered a 4 per cent growth inthe Apr-Jun 2013 quarter over theprevious quarter. The city isenjoying considerable attentionfrom the services sector and anumber of IT/ITeS, banking,finance and insurance companiesare establishing their offices here.The growth in the service sectoris further complemented byindustrial development.
Bangalore recorded a significantdrop of 6 per cent in the city indexduring the Apr-Jun 2013 quarter.
North Bangalore reported aplateauing-off of the market withsales not increasing as expected.Developers attribute this to thedelayed infrastructuredevelopment projects. This mighthave had a negative impact on thecity index. Further, more than 55per cent of the localities trackedacross the city, recorded a drop inaverage capital values, which alsopushed the index down. Over-supply in some locations toonegatively impacted the index.
Chennai posted an 8 per cent risein the City Index. The Listed PriceMonitor also moved up by 5 percent. This may be attributed to theincreasing supply in almost 90 percent of the localities tracked.Further, nearly 70 per cent of thelocalities recorded a rise inaverage capital values during theApr-Jun 2013 quarter. This againhad a positive impact on the cityindex as well as the price monitor.
The Delhi City Index dropped by 3 per cent during the Apr-Jun 2013quarter. The Listed Price Monitorrecorded no change. Drop insupply of housing units, both newas well as resale properties,combined with stable averagecapital values in impacterlocalities such as Dwarka, GreaterKailash II and VasundharaEnclave pushed down the price
monitor. Rise in average values in24 per cent of the localities keptthe price monitor unchangedduring the Apr-Jun 2013 quarter.
The Ghaziabad Index rose by 3 per cent during the Apr-Jun 2013quarter. However, the pricemonitor recorded a dip of 2 percent in the same period. Increasein average capital values,particularly in localities such asBhopura and Raj NagarExtension, coupled with enhancedsupply in almost 53 per cent of thelocalities resulted in the cityindex moving up. On the otherhand, falling capital values insome of the most active locationssuch as Indirapuram and Vaishaliled to a dip in the price monitor.
The Gurgaon City Indexwitnessed an increase of 4 per
Locality RankQ1 Q4
Mumbai 1 1
Bangalore 2 2
Pune 3 3
New Delhi 4 4
Hyderabad 5 5
Kolkata 6 8
Chennai 7 6
Gurgaon 8 7
Noida 9 9
Ghaziabad 10 10
Preferred Localities - Sale
Note: Q1 Apr-Jun 2013, Q4 Jan-Mar 2013
Preferred Localities - Rent
Locality RankQ1 Q4
Mumbai 1 1
Bangalore 2 2
Pune 3 3
New Delhi 4 4
Chennai 5 5
Hyderabad 6 7
Gurgaon 7 6
Kolkata 8 8
Noida 9 9
Ahmedabad 10 10Note: Q1 Apr-Jun 2013, Q4 Jan-Mar 2013
3VOL3, ISSUE 1; APR-JUN, FY 2013-14 propindex.magicbricks.com
cent in the Apr-Jun 2013 quarter.The Listed Price Monitor alsorecorded an increase, reflectingan improved market. This wasprimarily due to increasing buyerinterest mainly from the MNCsand other offices located in thecity. An upward trend was notedin the supply as well as in theaverage listed price for more than70 per cent of the localitiestracked. This is the prime reasonfor the increased city index andthe price monitor.
After recording a 3 per cent dropin the City Index in Jan-Mar 2013,Hyderabad’s residential markethas picked up pace in the Apr-Jun2013 quarter and has gone up by 11 per cent. The Listed PriceMonitor also went up by 10 percent in the same period, clearlyindicating a healthy rise in capitalvalues across various localities.Industry experts believe that a lotof improvement in the otherwisestable market has happened due tohigh activity in the IT/ITeSindustry. This has boded well forthe real estate market as demandfor housing has received animpetus.
The Kolkata City Index did notwitness any rise during the Apr-Jun 2013 quarter. However, theListed Price Monitor rose by 3 percent. While the increasing capitalvalues in more than 60 per cent ofthe localities accounted for thepositive price monitor, a drop in
capital values of actively listedlocalities such as EM Bypass andBehala restricted the upwardmovement of the city index. Thismay be attributed to the launch ofnew projects at comparativelylower rates and a situation ofover-supply in these locations.
The City Index for Noidaregistered an increase of 3 percent in Apr-Jun 2013. IT/ITeS andother industries have led to hugeemployment generation in Noidawhich augurs well for housing.Increase in availability of units innew developing sectors coupledwith small rise in average capitalvalues across the city kept the cityindex and price monitor up.
The Pune City Index rose by 2 percent during the Apr-Jun 2013quarter on the back ofconsistently rising average capitalvalues across the city. Further, anincrease in supply also led to thepositive movement of the pricemonitor and the city index.Capital values in the city rose by1-8 per cent across differentlocalities.
The Mumbai City Index rose by 1 per cent during the Apr-Jun 2013quarter while the price monitorrose by 5 per cent. Increasedsupply in the market coupled witha rise in the average listed pricespushed up the city index and theprice monitor. Several localitiesposted higher capital values.
Upto Rs 20 Lakh Rs 20-30 Lakh Rs 30-50 Lakh Rs 50-70 Lakh Rs 70-100 Lakh Rs 1-2 Crore Rs 2 Crore & Above
National - Consumer Budget Preference
30%
25%
20%
15%
10%
5%
0%
16% 15%
25%
14%12% 11%
7%
TOP Y IELD GROSSERS
Gross yield is a ratio of average annualrental value to the average capital valueof the property. Given below are the topyield-grossing localities in each city.
Locality Gross yield
Bangalore, Electronic City 5.40%
Kolkata, EM Bypass 5.03%
Hyderabad, Kondapur 4.24%
Ahmedabad, Vejalpur 3.72%
Mumbai, Parel 3.52%
Noida, Sector-92 3.44%
Ghaziabad, Indirapuram 3.09%
Pune, Viman Nagar 3.06%
Gurgaon, MG Road 2.66%
Chennai, Anna Nagar 2.63%
Delhi, Vasundhara Enclave 2.33%
CAPITAL GAINS
The table given below indicatesmaximum increase in capital values ineach city.
Locality % Change
Noida, Sector-150 15.23%
Hyderabad, Gachibowli 14.50%
Bangalore, Koramangala 9.79%
Chennai, Saligramam 9.73%
Ghaziabad, Govindpuram 8.85%
Kolkata, Jodhpur Park 8.47%
Pune, Bavdhan 8.41%
Mumbai, Colaba 8.05%
Ahmedabad, Gurukul 6.51%
Gurgaon, Sector-86 5.63%
Delhi, Malviya Nagar 3.70%
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CITY PROPERTY INDEX
After recording a 3 per cent dropin the City Index in the Jan-Mar 2013 quarter,Hyderabad’s residential markethas picked up pace in the Apr-Jun2013 quarter and has reportedlygone up by 11 per cent. The ListedPrice Monitor also went up by 10 per cent in the same period,clearly indicating a healthy rise incapital values across variouslocalities. The National PropertyIndex rose by 2 per cent.
Few localities which reported asignificant rise in property valueswere Gachibowli, Manikonda,Uppal, Bowenpally, Nizampet,KPHB Colony and LB Nagar.
A few others reported a moderatehike in values. These localitieswere Kompally, Hitech City,Nallagandla, Sainikpuri andMiyapur among others. Somelocalities such as Chanda Nagar
and Dilsukhnagar reportedlywitnessed a slight drop in capitalvalues.
LISTED PRICE MONITORProgress in the IT/ITeS industry,planned development of the metroand improvement in the roadnetwork with Outer Ring Road(ORR) nearing completion haspushed property values in manymajor localities of the city.Western localities such asGachibowli and Nizampetrecorded a hike in property valuesby almost 13-14 per cent in the
Apr-Jun 2013 quarter. “Gachibowliis the financial district ofHyderabad. The enhancement inthe IT/ITeS industry in the cityhas led to a greater demand forresidential properties in the city,especially in areas aroundGachibowli, such as Nizampet andMiyapur. Not only the IT industry,but proximity to ORR has also ledto stronger customer sentimentsin these areas,” says BanglaSurendra of Suha Properties.
Few other localities which havebenefitted on account of theirproximity to Gachibowli includeManikonda, Hitech City andKPHB Colony. These localitieshave reportedly witnessed a risein capital values by approximately4-7 per cent in the present quarter.
PROPINDEX - HYDERABAD
L I S T E D P R I C E M O N I T O R
Price Monitor indicates 10 increase in the average sale price
10%
QUICKSTATS
n Yield Meter: Yield ranges between2.76% to 4.24%
n Capital Values rose in 69% localities
n Rental Values rose in 75% localities
n City Index rose from 117 to 130
n Price Monitor rose from 113 to 124
HYDERABAD53VOL3, ISSUE 1; APR-JUN, FY 2013-14 propindex.magicbricks.com
“Hitech City is one of the primeareas in the city. Just 4km away,there is the KPHB colony, whichoffers properties at comparativelylower prices. Being preferred bythose working in Gachibowli, theresidential demand in both theseareas is soaring,” says Ranga RaoNakka of Chetanya KiranHousing, a city-based realty firm.
The under-construction metro,which would be running acrossvarious zones, has also left itsimpact on capital values. Uppal inthe East, LB Nagar and
Bowenpally in the South andBegumpet in the North recordedincreased capital values by 7-12 per cent in the Apr-Jun 2013quarter.
“The impact of the fast-pacedmetro construction is clearlyvisible in various localities in thecity. There has been a higherdemand for residential propertiesin areas such as LB Nagar,Bowenpally and Uppal. Theseareas will be well-connected oncethe metro gets functional in 2015,”adds Surendra.
As compared to the Jan-Mar 2013quarter, the Apr-Jun 2013 quarterwitnessed wider variations inproperty prices, pushing the CityIndex by a whopping 11 per cent.The trend is expected to continuein the coming one year with muchmore appreciation beinganticipated.
RENT MONITORThe MagicBricks.com Yield Meterranged from 2.76-4.24 per cent ascompared to 2.5-5 per cent in theJan-Mar 2013 quarter. Kondapurtopped the charts by recording4.24 per cent yield, followed byGachibowli. Unlike the Jan-Mar2013 quarter, the Apr-Jun 2013quarter saw many localities
RENT MONITOR
Rent Price Percentage Change
“The market hasimproved in the last fewmonths. Buyers, whowere apprehensive due torecession or Telanganafactor, have realised thatthe bottom was touched.Also, since Hyderabad isstill under-priced, there isa scope for upwardmovement.”
Rakesh TalwarVice PresidentMarketing and Sales,NSL Infratech
Locality Average Rental Average Capital Gross
Value (Rs/sqft/mth) Value (Rs/sqft) Yield
Kondapur 12.00 3,400.00 4.24%
Miyapur 9.00 3,150.00 3.43%
Kukatpally 9.00 3,150.00 3.43%
Banjara Hills 14.00 5,925.00 2.84%
Hitech City 14.50 4,225.00 4.12%
Manikonda 9.00 2,575.00 4.19%
Gachibowli 13.00 3,750.00 4.16%
Nizampet 6.50 2,350.00 3.32%
Madhapur 13.00 4,725.00 3.30%
Jubilee Hills 13.50 5,875.00 2.76%
Y I E L D M E T E R NEW
HYDERABAD 54VOL3, ISSUE 1; APR-JUN, FY 2013-14propindex.magicbricks.com
showing variations in rentalmarkets. The reasons weresimilar as that for rising capitalvalues. Areas most likely to bebenefitted by the metro have beenreceiving high rental demand inthe last three months.
For instance, Hitech City,Madhapur and Begumpetrecorded 7, 8 and 9 per cent rise inrental values, respectively. “Beingprime locations and close toGachibowli, Hitech City andMadhapur receive high demandfor rental properties,” says Nakkaof Chetanya Kiran Housing, acity-based realty firm.
Other localities which registereda major positive change in rentalvalues in the last six months wereKutkatpally, Banjara Hills,Somajiguda and Madhapur. Therental values in these localitieswent up by almost 6-8 per cent.
Industry experts believe that a lotof improvement in the otherwisestable market has happenedbecause of high activity in theIT/ITeS industry in the city. Asper TimesJobs.com research,March and April 2013 recorded 10and 14 per cent growthrespectively, in demand for talent,in the city.
June 2013 witnessed 31 per centgrowth in demand for talent,which has been the highest in thisyear. With enhanced jobopportunities, demand forresidential properties hasundoubtedly gone up.
The positive shift in customersentiments over Telangana hasalso led to an improvement in themarket. Srinivas Reddy, ResidentDirector, SMR Builders says,“Buyers have started realisingthat Telangana will not bring anykind of adverse effect and itsdeclaration will push the propertyvalues even higher. This has ledthe market to improve months.”
“Even developers have startedcashing in on the opportunity interms of their marketing. Sales
have gone up. Once the Telanganamatter is sorted out, the city willgrow further,” adds Reddy.
West Hyderabad sees price hikeThe values of residential properties in Hyderabad’s westernlocalities such as Gachibowli, Kondapur and Miyapur havereported a rise in the Jan-Mar 2013 quarter. While the prices formulti-storey apartments went up by 2 per cent in Kondapur, plotsgained value by over 7 per cent in Gachibowli. Miyapur recordeda rise in prices of both multi-storey apartments and independenthouses by 2 and 7 per cent respectively. The price rise is attributedto several factors with new launches playing the most vital roleamongst all. Data with MagicBricks.com states that out of thetotal new launches in Hyderabad, Gachibowli, Miyapur andKondapur account for 16, 10 and 5 per cent respectively.
n MagicBricks.com Bureau
New launches preferred over resale propertiesHyderabad’s real estate market is witnessing several new projectlaunches. Developers are positive since across the city buyersprefer new launches over resale properties. Data withMagicBricks.com indicates that almost 70 per cent of the newresidential launches will be in West Hyderabad. Madhapur andKukatpally in West Hyderabad would be the two main localities.Ganesh Pogul of Shreya Realty says, “Buyers usually prefer newlaunches for several reasons. First, resale properties are normally25-30 per cent more expensive than new launches. Second, returnson investment are higher in new projects.”
n MagicBricks.com Bureau
Higher property registration charges after a revision have not deterred the buyer in Hyderabad. From new growth corridorssuch as Manikonda, Nanakramguda and Gopanpally to a spate of new launches, some in the super luxury segment, hasthe Hyderabad property market reached its peak?
To read full story and more news go to www.content.magicbricks.com
Rakesh Sudam Business Head Earthwide Properties
Preferred Localities - Rent
Locality RankQ1 Q4
Gachibowli 1 2
Madhapur 2 1
Kondapur 3 3
Banjara Hills 4 5
Miyapur 5 4
KPHB Colony 6 9
Hitech City 7 7
Kukatpally 8 6
Begumpet 9 8
Ameerpet 10 -Note: Q1 Apr-Jun 2013, Q4 Jan-Mar 2013
R E A L T Y N E W S
“The real estate market inHyderabad andSecunderabad is growingfast, irrespective of thepolitical uncertainty asclaimed, the prices haveshot up in the last 6months and reputedbuilders are coming upwith a number of newprojects. “
Locality RankQ1 Q4
Gachibowli 1 1
Kondapur 2 2
Miyapur 3 3
Banjara Hills 4 7
Kukatpally 5 4
Manikonda 6 5
Chanda Nagar 7 6
Hitech City 8 9
KPHB Colony 9 10
Uppal 10 8
Preferred Localities - Sale
Note: Q1 Apr-Jun 2013, Q4 Jan-Mar 2013
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Budget wise Analysis - DEMAND
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Q1 (Apr-Jun 2013)
Fig
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in p
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ntag
e(%
)
South Hyderabad North Hyderabad Central Hyderabad West Hyderabad East Hyderabad
Rs <20 lakh Rs 20-40 lakh Rs 40-60 lakh Rs 60 lakh-1 crore Rs1 crore and above
Q4 Q1
47
Q4 Q1
44
Q4 Q1
54
Q4 Q1
44
Q4 Q1
4845
49 45
4546
Budget wise Analysis - SUPPLY
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Q4 Q1 Q4 Q1 Q4 Q1
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37
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41 25
192127
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36 3437
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18 18
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1612
22 22
13 13
30
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15
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above
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)
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16
45 46
1920
11 11
7 7
Budget wise Analysis - City Level
DEMAND
60
50
40
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0<20 20-40 40-60 60-100 100 &
above
20
Fig
ures
in p
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)
Figures in Rs lakh
17
2925 21 22
15 16 15
20
SUPPLY
10
(Jan-Mar 2013)
(Apr-Jun 2013)
(Jan-Mar 2013)
(Apr-Jun 2013)
7
8
22
City Level Analysis
l The budget categories Rs 60 lakh-Rs 1 crore and Rs 1 crore and aboveposted stable demand, whiledemand for Rs 20-40 lakh and Rs 40-60 lakh category went up by 1 per cent each in the quarter.
l Supply of Rs 20-40 lakh categoryalso dropped by 4 per cent in theApr-Jun 2013 quarter. However itcontinued to be the most suppliedbudget category in the city.
l Demand and supply of Rs 20 lakhbudget category dipped by 2 and 3 per cent respectively.
Zone Level Analysis
l Properties worth up to Rs 20 lakhwitnessed a decline in demand invarious zones across the city. TheNorth registered maximum declineof 6 per cent in Apr-Jun 2013.
l Demand for properties worth Rs 20-40 lakh increased by 3 and 5 per cent in East and Centralareas with localities such as Uppal,and Pragathi Nagar recordingsignificant demand.
l Luxury homes valued above atRs 1 crore and above were the leastpreferred in the city. Their demandwas largely concentrated in thewestern areas such as Gachibowli,Banjara Hills and Jubilee Hills.
l Supply of properties worth up toRs 20 lakh was the largest in theSouth with 41 per cent availabilityin the Apr-Jun 2013 quarter. The supply rose by 6 per cent sincethe Jan-Mar 2013 quarter.
l North Hyderabad registered a 5 percent rise in supply of Rs 20-40 lakhproperties in areas such as Alwal,Sainikpuri and Begumpet.
l Central areas recorded a 10 and 3 per cent rise in supply ofpremium properties valuedbetween Rs 60-100 lakh and Rs 1 crore and above, respectively.
D E M A N D - S U P P LY A N A LY S I S
Budget Wise Analysis
City Level graphs represent demand and supply in differentbudgets in the city in two quarters. Zonal Demand and Supplygraphs decode specific requirements, listings and changingavailability of these units across zones in each quarter.
Buyer demand analysis includes city and zone level analysis of three parameters - Budget, Configuration andProperty Types. Each of these have been analysed from the supply and demand perspective. These give insightinto a city’s real estate profile in the quarter.
10
9
Rs <20 lakh Rs 20-40 lakh Rs 40-60 lakh Rs 60 lakh-1 crore Rs1 crore and above
HYDERABAD 56VOL3, ISSUE 1; APR-JUN, FY 2013-14propindex.magicbricks.com
Property wise Analysis - City Level
60
50
40
30
20
10
0
4852
2 2
2219
2220
Fig
ures
in p
erce
ntag
e(%
)
Multistorey Single Residential Residential Villaapartment floor house plot
DEMAND
7 8
60
50
40
30
20
10
0
5451
4 4
10 11
2325
Fig
ures
in p
erce
ntag
e(%
)
Multistorey Single Residential Residential Villaapartment floor house plot
SUPPLY
9 9
Property wise Analysis - DEMAND
120
100
80
60
40
20
0
Q4 (Jan-Mar 2013)
Q1 (Apr-Jun 2013)
Fig
ures
in p
erce
ntag
e(%
)
South Hyderabad North Hyderabad Central Hyderabad West Hyderabad East Hyderabad
Multistorey apartment Single floor Residential house Residential plot Villa
Q4 Q1
30
25
35
33
21
34
31
36
28
37
30
28
64
18
13
68
17
12
56
16
17
59
13
16
Q4 Q1 Q4 Q1 Q4 Q1
35
32
27
42
28
2411 9
Q4 Q1
Property wise Analysis - SUPPLY
120
100
80
60
40
20
0
Q4 (Jan-Mar 2013)
Q1 (Apr-Jun 2013)
Fig
ures
in p
erce
ntag
e(%
)
South Hyderabad North Hyderabad Central Hyderabad West Hyderabad East Hyderabad
Multistorey apartment Single floor Residential house Residential plot Villa
Q4 Q1
26
5
58
16
7
61
49
16
24
45
17
29
73
9
9
76
12
62
8
16
58
9
19
Q4 Q1 Q4 Q1 Q4 Q1
54
16
16
54
19
1614 10
Q4 Q110 8
810
10
7
City Level Analysis
l Similar to the Jan-Mar 2013quarter, multi-storey apartmentscontinued to be the most demandedand supplied property type in thecity. While demand went up by 4 per cent, supply dropped by 3 percent in the Apr-Jun 2013 quarter.
l Residential houses and plotswitnessed almost equal demand inthe city, though their suppliesdiffered by a significant amount.Availability of plots exceeded thatof houses by 14 per cent.
l Single floors remained the leastpreferred property type since thelast six months.
Zone Level Analysis
l The Central and Western zoneswitnessed more than 50 per centdemand for multi-storeyapartments. All the zones recordeda hike in demand for this propertytype by 3-7 per cent.
l Southern localities such asShamshabad, Shankarpalli andShad Nagar registered maximumdemand for residential plots.
l The South was also the only regionwhich posted a healthy demand forvillas. Almost 11 per cent buyers, 2 per cent higher than the Jan-Mar2013 quarter, sought villas in areassuch as Kokapet and BHEL Colony.
l Other than the Central and theWest, eastern areas also deliveredmore than 50 per cent multi-storeyapartments. The North, West andSouth recorded a decline inavailability of these units by awhopping 4-10 per cent.
l In place of multi-storeyapartments, the South delivered 3 per cent more of residential plotsand 4 per cent more of villas in theApr-Jun 2013 quarter.
l The North and the West registereda 3-5 per cent higher supply ofplots, especially in localities suchas Alwal and Ghatkesar in theNorth and Gachibowli, Miyapur,Kondapur and Manikonda in the West.
(Jan-Mar 2013)
(Apr-Jun 2013)
(Jan-Mar 2013)
(Apr-Jun 2013)
9 9
96
Property Wise Analysis
The first graph, Property-wise Analysis – City Level, depictshow demand and supply statistics for different property typeshave changed at the city level over a period of six months.
The Property wise graphs by Demand and Supply comparebuyer requirements and the existing listings for variousproperty types in different zones in the six-month period fromJanuary to June 2013.
HYDERABAD57VOL3, ISSUE 1; APR-JUN, FY 2013-14 propindex.magicbricks.com
BHK Configuration - DEMAND
120
100
80
60
40
20
0
Fig
ures
in p
erce
ntag
e(%
)
South Hyderabad North Hyderabad Central Hyderabad West Hyderabad East Hyderabad
1 BHK 2 BHK 3 BHK 4 BHK & above
Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1
54
63 68
56 59 53616162
53
BHK Configuration - SUPPLY
120
100
80
60
40
20
0
Fig
ures
in p
erce
ntag
e(%
)
South Hyderabad North Hyderabad Central Hyderabad West Hyderabad East Hyderabad
1 BHK 2 BHK 3 BHK 4 BHK & above
Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1
49
5043
43
48
454438
48
5043
38
40
43
32 31
6 6
32 33
7
37 33 37
6
38 29 26
6
16 16
43 42
13 10 15
36 32
18
39 36
12
Q4 (Jan-Mar 2013)
Q1 (Apr-Jun 2013)
Q4 (Jan-Mar 2013)
Q1 (Apr-Jun 2013)
13 9
BHK Configuration - City Level
60
50
40
30
20
10
0
6 5
5557
35 35
4 3
Fig
ures
in p
erce
ntag
e(%
)
1 BHK 2BHK 3 BHK 4BHK &above
DEMAND SUPPLY
60
50
40
30
20
10
01 1
4037
45 45
1417
Fig
ures
in p
erce
ntag
e(%
)
1 BHK 2BHK 3 BHK 4BHK &above
6
8
City Level Analysis
l 2BHK units recorded maximumdemand in the city. The preferencefor this configuration rose by 2 per cent in the Apr-Jun 2013quarter. However, supply wentdown by 3 per cent and remained20 per cent short of demand.
l While 3BHK units were the secondmost demanded, its supply toppedthe charts. Both demand andsupply remained stable in the lastsix months.
l 1BHK and 4BHK and above unitswere the least demanded in thecity. However, 4BHK and aboveunits were over-supplied withsupply going up to 17 per cent inthe Apr-Jun 2013 quarter.
Zone Level Analysis
l All the zones recorded more than50 per cent demand for 2BHK units.The East, Central and South zonesrecorded an increase of 5-8 percent in demand for these units.
l Among all other zones, the Westregistered the highest demand for3BHK and above homes. Localitiessuch as Gachibowli, Kondapur,Madhapur and Miyapur were the post popular for premiumhomes.
l Demand for 4BHK and largerhomes dipped by 1-3 per cent in allzones, except the West where itremained stable.
l Supply of 1BHK units remainedstable in all zones expectHyderabad Central where it wentup by 4 per cent.
l All the zones recorded maximumsupply of 3BHK units except theSouth and the East where 2BHKunits were most delivered.
l In line with demand, the Westernlocalities of Hyderabad deliveredmaximum premium homes, of 3, 4BHK and above configurations,as compared to all other zones.Supply of 4BHK and above unitswent up by a moderate 3 per cent inthe Apr-Jun 2013 quarter ascompared to the previous quarter.
BHK Configuration Analysis
The City BHK Configuration graphs represent demand andsupply of 1, 2, 3 and 4 BHK apartments in the city in twoconsecutive quarters – Jan-Mar 2013 and Apr-Jun 2013.
The BHK Configuration graphs by Demand and Supplycompares buyer requirements and the existing listings forvarious configurations in different zones in the six-monthperiod from January to June 2013.
(Jan-Mar 2013)
(Apr-Jun 2013)
(Jan-Mar 2013)
(Apr-Jun 2013)
ANNExURES
Alwal 2050 to 2350
Amberpet 2900 to 4050
Ameerpet 3750 to 4550
Appa Junction 3100 to 3850
AS Rao Nagar 1950 to 2550
Attapur 2500 to 3150
Bachupally 2250 to 2750
Bala Nagar 2300 to 2400
Bandalguda 2050 to 2550
Banjara Hills 5250 to 7150
Begumpet 3850 to 4750
Bowenpally 2300 to 2850
Chanda Nagar 2600 to 3250
Chintal 2350 to 2500
DD Colony 4150 to 5050
Dilsukh Nagar 2750 to 3250
ECIL 2000 to 2450
Gachibowli 3400 to 4350
Gajularamaram 2500 to 2800
Hafeezpet 3300 to 3600
Hitech City 3900 to 4800
Hyder Nagar 3300 to 3800
Jeedimetla 2200 to 2550
Jubilee Hills 5250 to 6950
Kavadiguda 4600 to 5100
Kompally 2200 to 2700
Kondapur 3200 to 3800
KPHB Colony 3400 to 4400
Kukatpally 2850 to 3700
LB Nagar 2600 to 2900
Madhapur 4300 to 5500
Madinaguda 2800 to 3350
Malkajgiri 2100 to 2600
Manikonda 2400 to 2900
Mehedipatnam 2650 to 3700
Miyapur 2950 to 3500
Nallagandla 3100 to 3700
Nallakunta 3100 to 3850
Narsingi 2800 to 3800
Nizampet 2150 to 2700
Nizampet Village 1950 to 2200
Pocharam 1000 to 1050
Pragati Nagar 2050 to 2350
Quthbullapur 2300 to 2550
SR Nagar 4000 to 4950
Safilguda 1800 to 2400
Sainikpuri 2050 to 2500
Saket 2950 to 3300
Sanath Nagar 4100 to 4550
Somajiguda 4100 to 4800
Srinagar Colony 4100 to 5150
Tellapur 2300 to 2750
Uppal 2100 to 2400
HYDERABAD 74VOL3, ISSUE 1; APR-JUN, FY 2013-14propindex.magicbricks.com
CAPITAL VALUES – LOCALITY WISE
Average Listed Residential Apartment Prices
Locality Capital Values (Rs/Sq feet)
Locality Capital Values (Rs/Sq feet)
HYDERABAD
VOL3, ISSUE 1; APR-JUN, FY 2013-14propindex.magicbricks.com
D I S C L A I M E REvery effort has been made to make this Index as complete and as accurate as possible. MagicBricksaccepts no responsibility for inaccuracies in the information/data contained in this book. It shall haveneither liability nor responsibility to any person or entity with respect to any loss or damage caused, oralleged to have been caused, directly or indirectly, by the information contained in this book. Theinformation/data in this book is subject to change from time to time due to market condition.
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