A look into the real estate figures of Hyderabad from July - December 2017.

1. HYDERABAD
RESIDENTIAL & OFFICE
JULY TO DECEMBER 2017
KnightFrank.co.in

2. 2
RESIDENTIAL
RECAP H1 2017
• New launches hit an all-time low of
just over 2,500 units in H1 2017
Ambiguity on RERA
Sales remained steady

3. Lack of proper
implementation of RERA
pulls new launches to a
grinding halt
3
14,828
19,919
22,726
18,643
13,050
11,197 11,600
3,511
2010 2011 2012 2013 2014 2015 2016 2017
Launches down
70% YoY
Launches
Launches all time low

4. 4
7,899
5,151
5,457
5,740 5,700 5,900
2,571
940
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017
84%
YoY
Lack of systems and
processes pulls down new
launches to a historic low in
2nd half of 2017
Half-yearly launches
In a first, city witnesses
sub 1,000 unit launches

5. 5
15,021
16,902
19,050
18,428
15,111 14,903
15,500
14,243
2010 2011 2012 2013 2014 2015 2016 2017
8%
YoY
Sales
Sales tad below
2016 levels
Lack of clarity in RERA and
GST
Inadequate ready-to-move-in
homes

6. EAST
23 units
-54% YoY
426 units
-23% YoY
CENTRAL
23 units
-54% YoY
416 units
-41% YoY
NORTH
23 units
-54% YoY
818 units
-18% YoY
WEST
23 units
-54% YoY
4,403 units
-11% YoY
SOUTH
23 units
-54% YoY
279 units
-54% YoY
The biggest market, West
Hyderabad also faces stress
Sales drop across
all micro-markets
in H2

7. Lack of launches and shortage
of ready to move in houses
push up prices by 3%
7
2,960
3,316
3,502
3,610
3,710
3,821
2,000
2,200
2,400
2,600
2,800
3,000
3,200
3,400
3,600
3,800
4,000
Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017
3%
YoY
Amidst price
correction in most
cities, Hyderabad
records an
appreciation

8. JUBILEE HILLS
INR 10,980-11,034/sq ft
3%
BANJARA HILLS
INR 10,100-10,464/sq ft
3%
NACHARAM
INR 3,467-3,535/sq ft
4%
MANIKONDA
INR 4,390-4,484/sq ft
7%
BANDLAGUDA
INR 2,700-2,752/sq ft
8%
SAINIKPURI
INR 2,700-2,787/sq ft
2%
KOKAPET
INR 4,234-4,314/sq ft
4%
All micro markets
witnessed a positive
growth in prices

9. 70
80
90
100
110
120
130
140
CPI HYDERABAD
Residential prices up by by
3% compared to an inflation
growth of 5.5% in 2017
Price growth evident,
albeit under retail
inflation
9
CPI
HYDERABAD

10. 10
Hyderabad an affordable market,
hovers around the
Knight Frank Affordability
Benchmark* of
4.5
(*house price to income ratio)
2017
5
2010
5.7

11. Inventory levels and
QTS lowest since 2014
Age of inventory a major
concern at 4.5 years
Unsold inventory
declines 38% YoY on
the back of negligible
launches
11
37,861
35,183
33,517
31,477
29,477
28,088
22,658
17,356
8.2 8.4
8.7
8.4
7.7
7.3
5.9
5.0
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
-10,00020,00030,00040,000
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017
QTS
UnsoldInventory
Unsold inventory QTS

12. EAST
CENTRAL
NORTH
WEST
SOUTH
Unsold units
2.993
QTS 7.2
Age 20.7
Unsold units
909
QTS 3.6
Age 23.1
Unsold units
1,037
QTS 3.6
Age 14.5
Unsold units
2,286
QTS 8.9
Age 21
Unsold units
10,131
QTS 4.1
Age 16.1
Drastic reduction in launches and
steady sales has further pushed
down the QTS from 8 quarters in
H2 2016 to 5 quarters in H2 2017
Affordable
housing lifts
peripheral markets
Age and QTS in quarters

13. KEY FINDINGS
13
01 03
02 04
Launches down by 84% YoY
in H2 2017
Amidst price correction in most
cities, Hyderabad records an
appreciation
Unsold inventory down
by 38% YoY
Age of inventory a major concern at 4.5
years
Sales in H2 2017
down by 13% YoY
• Lack of clarity in RERA and GST
• Inadequate ready-to-move-in homes
Lack of proper implementation of RERA
pulls new launches to a grinding halt
Lack of launches push up house price by 3%

14. 14
H1 2017 recorded highest number of
deals
Vacancy was at new low, low supply
failed to keep pace with demand
IT/ITeS took a hit in share of
transaction
OFFICE
RECAP H1 2017

15. 15
3.4
5.0
3.9
6.0
3.3
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2013 2014 2015 2016 2017
New completions
New completions were
down 46% in 2017
Robust supply pipeline, but
dearth of new completions in
2017
Mn.Sqft.

16. 16
2.7
1.0
2.0
2.4 2.4
1.2
H2 2012 H2 2013 H2 2014 H2 2015 H2 2016 H2 2017
Half-yearly new completions
Similar trend evident in
H2 2017
Mn.Sqft.

17. 17
3.74
4.70 4.57
5.92
5.67
2013 2014 2015 2016 2017
4% YoY
Transactions
Lack of quality supply
limits transaction
volume in an otherwise
robust market
Mn.Sqft.

18. 18
1.1
1.2
2.8
3.1
3.2
3.3
H2 2012 H2 2013 H2 2014 H2 2015 H2 2016 H2 2017
Half-yearly transactions
Highest transaction in
H2 recorded in the last
five years
Mn.Sqft.

19. 19
8.7
8.4
6.5
5.9
5.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2013 2014 2015 2016 2017
Vacancy
Want of quality office
space pushed vacancy
to abysmally low levels
percentage

20. Average rentals grew by
around 9% YoY
12 month change
PBD WEST
INR 45-55/sq ft/month
10%
SBD
INR 55-65/sq ft/month
8%
CBD & Off CBD
INR 40-50/sq ft/month
4%
PBD EAST
INR 30-35/sq ft/month
9%

21. 21
Industry H2 2017 H2 2016
BANKING, FINANCIAL
SERVICES &
INSURANCE
1% 7%
IT/ITES 75% 87%
MANUFACTURING 6% 1%
OTHER SERVICES 17% 5%
IT/ITeS still the market
leader; heightened
traction seen by other
services sector

22. KEY FINDINGS
01 03
02 04
22
New supply at an all time
low
Vacancy at an all time
low
IT/ ITeS maintains its
leadership in the share of
transactions
Rentals increase 9% YoY.
All micro markets witness
positive growth in rentals

23. HYDERABAD
RESIDENTIAL & OFFICE
Amidst price correction in most cities, Hyderabad
records an appreciation in the residential segment
Hyderabad office market among better performing
IT / ITeS driven market
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