This is our third edition of the flagship half yearly report - India Real Estate. It presents a comprehensive analysis of the residential and office market performance of the Hyderabad Region for the period between January–June 2015 (H1 2015).

1. HYDERABAD
RESIDENTIAL
JANUARY TO JUNE 2015

2. RESIDENTIAL
DEMAND
STABILISING SINCE
H1 2014
Will launches continue to spiral downward in Hyderabad?
How are the premium locations faring in Hyderabad currently?
Which market is carrying the oldest inventory in South India?

3. 11,266
7,376
7,899
5,151
5,457
10,009
8,419
7,282
7,829
7,123
3,116
3,316 3,390
3,502
3,509
3,590
2,000
2,300
2,600
2,900
3,200
3,500
3,800
-
2,000
4,000
6,000
8,000
10,000
12,000
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
INR/sqft
No.ofUnits
Launches Absorption Wt. Avg. Price (RHS)
DEMAND REMAINS STEADY SINCE END
OF 2013; NEW LAUNCHES DROP AT A
FASTER PACE

4. NORTH HYDERABAD –
THE MOST
AFFORDABLE MARKET

5. 0%
20%
40%
60%
80%
100%
<2.5 mn 2.5-5 mn 5-7.5 mn 7.5-10 mn 10-20 mn 20-40 mn
HMR - Central HMR - East HMR - North HMR - South HMR - West
ALL LAUNCHES UNDER INR 2.5 MN IN
NORTH HYDERABAD
INR

6. CENTRAL HYDERABAD THE
BEST MARKET DUE TO
LIMITED UNSOLD
INVENTORY AND INHERENT
SUPPLY CONSTRAINTS

7. 8
10
12
14
16
18
20
0 5 10 15 20 25 30
Ageofunsoldinventoryinquarters
QTS
WITH HIGHEST UNSOLD INVENTORY,
WEST HYDERABAD STILL AMONG THE
HEALTHIEST MARKETS
HMR - NORTH
HMR - SOUTH
HMR - EAST
HMR - WEST
HMR - CENTRAL

8. PREMIUM MARKET
WITH APARTMENTS
OVER INR 1.5 CRORE
HIT HARD BY
SLOWDOWN

9. 572
889
308
232
544
466
345
294
352
346
5,161
5,539
5,684
5,789
5,789
4,800
5,000
5,200
5,400
5,600
5,800
6,000
-
100
200
300
400
500
600
700
800
900
1,000
2013 H1 2013 H2 2014 H1 2014 H2 2015 H1
Sum of New Launch Sum of Total Absorption Max of Prices
AT 64%, Y-O-Y SPIKE IN LAUNCHES
PUTS ADDITIONAL PRESSURE ON
PREMIUM SEGMENT
Launches Absorption Wt. Avg. Price (RHS)

10. THE PREMIUM SEGMENT
IS CARRYING OVER
2 YEARS OF INVENTORY,
UP FROM LESS THAN 1
YEAR IN 2013

11. 1
2
3
4
5
6
7
8
9
10
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
NumberofQuarters
PREMIUM SEGMENT FALLS VICTIM TO
MARKET MALAISE
PREMIUM MARKETS
HYDERABAD CITY

12. GOING FORWARD,
SALES WILL HOLD
WITH A DOWNWARD
BIAS

13. OUTLOOK FOR THE NEXT 6 MONTHS
H2 2014 H2 2015E GROWTH
LAUNCHES (UNITS) 5,151 4,635 -10%
ABSORPTION
(UNITS)
7,829 7,640 -2%
WEIGHTED AVERAGE PRICE
(INR/SQ FT)
3,502 3,590 3%

14. HOW DOES HYDERABAD
STAND COMPARED TO
OTHER CITIES

15. HYDERABAD HAS THE LOWEST NUMBER
OF LAUNCHES AMONG ALL MARKETS
H1 2014 H1 2015
MUMBAI 35,512 18,887
NCR 35,500 11,360
BENGALURU 35,545 21,400
PUNE 16,883 12,762
CHENNAI 11,377 9,102
AHMEDABAD 9,021 8,062
KOLKATA 8,444 8,372
HYDERABAD 7,899 5,457

16. HYDERABAD SALES TOUCH LOWEST
LEVELS, EXCEED ONLY KOLKATA
H1 2014 H2 2014
MUMBAI 31,210 28,446
NCR 28,500 14,250
BENGALURU 27,256 22,234
PUNE 14,719 15,524
CHENNAI 10,315 9,091
AHMEDABAD 10,472 7,751
HYDERABAD 7,282 7,123
KOLKATA 6,390 5,883

17. HYDERABAD AMONG THE LEAST PRICED
MARKETS IN INDIA
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Rs/sqft
MUMBAI
PUNE
AHMEDABAD
HYDERABAD
KOLKATA
NCR
BENGALURU
CHENNAI

18. HYDERABAD CARRIES THE OLDEST
RESIDENTIAL UNSOLD INVENTORY IN INDIA
5
7
9
11
13
15
5 7 9 11 13 15 17 19
Ageofunsoldinventoryinquarters
QTS
MUMBAI
PUNE
AHMEDABAD
HYDERABAD
KOLKATA
NCR
BENGALURU
CHENNAI

19. HYDERABAD
OFFICE
MARKET
JANUARY TO JUNE 2015

20. OFFICE MARKET
RECOVERING
Will IT/ITeS sector continue to stay strong or new sectors will
take its place?
How have rentals fared during H1 2015?
Which locations experienced the most leasing activity?

21. 53.15
55.85
58.89
60.84
62.34
44.83
45.98
47.93
50.69
52.15
15.7%
17.7%
18.6%
16.7%
16.3%
14.0%
14.5%
15.0%
15.5%
16.0%
16.5%
17.0%
17.5%
18.0%
18.5%
19.0%
-
10
20
30
40
50
60
70
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
mn.sqft
Stock Occupied stock Vacancy
ABJECT SCARCITY OF VIABLE OFFICE
SPACE PUSHES DOWN VACANCY TO
16.3% DURING JAN-JUN 2015

22. 4.04
2.70
3.04
1.95
1.50
2.59
1.15
1.94
2.76
1.47
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
mn.sqft
New completions Absorption
ABSORPTION AT LOWEST LEVEL
SINCE LAST JUNE

23. DWINDLING OFFICE
SUPPLY AND LATENT
DEMAND DRIVE
RENTAL GROWTH

24. RESULTING IN STEEP RENTAL
APPRECIATION OF 8% DURING H1 2015
36
37 37 37
37
39
40
34
35
36
37
38
39
40
41
H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
INR/sqft/month
Rents

25. OTHER SERVICES
SECTOR ALMOST
EQUALS IT/ITeS’
SPACE SHARE IN
JAN-JUN 2015

26. 12%
52%
5%
31%
2%
40%
10%
47%
1%
49%
2%
48%
0%
10%
20%
30%
40%
50%
60%
BFSI IT/ITeS Manufacturing Other Services sectors
H1 2014 H2 2014 H1 2015
0.23
0.07
0.02
0.60
1.30
0.70
0.10
0.28
0.03
HEALTHCARE COMPANIES LIKE CARE
HOSPITAL & MEDICITY HOSPITALS TAKE
UP LARGE SPACES
1.01
1.11
0.71

27. GACHIBOWLI, THE
MOST PREFERRED
MARKET BY
OCCUPIERS

28. PBD WEST INCREASES ITS SHARE IN
THE TOTAL ABSORPTION
9%
75%
14%
3%
18%
39% 41%
2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
CBD & Off CBD SBD PBD West PBD East
H1 2014 H1 2015
1.46
0.57
0.26
0.60
0.05
0.03
0.17
0.26

29. INCREASE IN SUPPLY
DURING THE NEXT 6
MONTHS EXPECTED
TO BOOST
ABSORPTION

30. OUTLOOK FOR THE NEXT 6 MONTHS
H1 2015 H2 2015E GROWTH
NEW COMPLETIONS
(MN SQ FT)
1.5 2.4 60%
ABSORPTION
(MN SQ FT)
1.5 2.5 67%
VACANCY 16.3% 15.5%
WEIGHTED AVERAGE RENT
(INR/SQ FT/MONTH)
40 42 5%

31. HOW DOES HYDERABAD
STAND COMPARED TO
OTHER CITIES

32. 22%
21%
8%
15%
18%
16%
0%
5%
10%
15%
20%
25%
-
1
2
3
4
5
6
7
Mumbai NCR Bengaluru Pune Chennai Hyderabad
mnsqft
New completions Absorption Vacancy (RHS)
H1 2015
SCARCITY IN QUALITY OFFICE SPACE

33. HYDERABAD HAS THE LOWEST
RENTALS AMONG ALL MARKETS IN INDIA
-15%
-10%
-5%
0%
5%
10%
15%
20%
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
Mumbai NCR Bengaluru Pune Chennai Hyderabad
GrowthinRentals
HYDERABAD

34. 21,430
25,622
71,577
21,434
24,520
24,702
23,291
21,872
54,253
40,773
34,507
18,585
-
20,000
40,000
60,000
80,000
Mumbai NCR Bengaluru Pune Chennai Hyderabad
sqft
H1 2014 H1 2015
ABJECT SCARCITY OF OFFICE SPACE
HAS RESULTED IN LOWEST AVERAGE
DEAL SIZEIN INDIA

35. RESIDENTIAL
HYDERABAD
DEMAND STABILIZING SINCE 2014, BUT LOWEST NUMBER OF LAUNCHES
DURING JAN - JUN 2015 AMONG TOP 8 CITIES
OFFICE
HYDERABAD
SUPPLY CRUNCH COUPLED WITH LATENT DEMAND LEADING TO RENTAL
GROWTH
KEY TAKEAWAYS

36. HYDERABAD
REAL
ESTATE
JANUARY TO JUNE 2015