HYDERABAD July – December 2015

Demand outstrips supply for

the second straight year

RESIDENTIAL

While demand holds steady,

residential supply is at its 5 year low

ANNUAL LAUNCHES AND ABSORPTION TREND

8,000

12,000

16,000

20,000

24,000

2010 2011 2012 2013 2014 2015

Launches Absorption

HENCE, UNSOLD INVENTORY AT

ITS LOWEST LEVEL SINCE 2010

Sharp fall in new launches AND

STEADY SALES reduces inventory

pressure

MICRO-MARKET SPLIT OF SALES

25,000

30,000

35,000

40,000

H2 2011 H2 2012 H2 2013 H2 2014 H2 2015

No

. o

f u

nso

ld u

nit

s

32,700

31,500

Sharp fall in new launches and

steady sales volume reduces

inventory pressure

However, H2 2015 sees a trend

reversal in terms of

launches; 11% growth Y-o-Y

H2 TREND OF LAUNCHES AND ABSORPTION

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

H2 2011 H2 2012 H2 2013 H2 2014 H2 2015

Launches Absorption

But launches still less than

half of their 2012 heydays

West & North dominate in

new launches; East

neglected

While new launches jump 3.5x in North

Hyderabad, it still accounts for just 15%

of the city’s launches

-

1,000

2,000

3,000

4,000

Central East North South West

H2 2014 H2 2015

85%

250%

33%

MICRO-MARKET SPLIT OF LAUNCHED UNITS

East suffers due to lack of

employment opportunity and poor

connectivity

-

200

400

600

800

1,000

1,200

1,400

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015

No

. o

f u

nit

s

LAUNCHES IN EAST HYDERABAD

HYDERABAD OFFICE MARKET

CONTINUES ITS UPWARD

CONSOLIDATION

OFFICE

Demand stays robust as supply tapers

down for the second straight year

ANNUAL TREND OF NEW COMPLETION AND ABSORPTION

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2011 2012 2013 2014 2015

mn

sq

ft

New Completions Absorption

Reducing vacancy levels cause surge

in rental growth

30

32

34

36

38

40

42

44

6%

8%

10%

12%

14%

16%

18%

20%

2011 2012 2013 2014 2015

Ren

ts (

INR

. p

sf)

Vacan

cy %

Vacancy Rents

ANNUAL RENT & VACANCY TREND

H2 2015 WITNESSES HIGHEST

HALF-YEARLY DEMAND FOR

OFFICE SPACE IN HISTORY

3.1 mn sq ft of space was absorbed

in H2 2015

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

H2 2012 H2 2013 H2 2014 H2 2015

mn

sq

ft

New completions Absorption

NEW COMPLETION AND ABSORPTION TREND DURING H2

KEY Takeaways

RESIDENTIAL

STEADY DEMAND AND REDUCING UNSOLD

INVENTORY COUPLED WITH SALES PRESSURE

WILL SOON ENCOURAGE DEVELOPERS TO

INCREASE SUPPLY

OFFICE

REDUCING VACANCY LEVELS WILL CONTINUE TO

PUSH UP RENTAL GROWTH RATES

HYDERABAD July – December 2015