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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
Page 1© magicbricks.com
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 [email protected] [email protected] [email protected] [email protected]
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%
Page 3© magicbricks.com