PropIndex | Magicbricks · Residential Market Insights Reduction in stamp duty and property...

PropIndex | Magicbricks

Residential Market Insights

Reduction in stamp duty and property guidance values to help revive Bengaluru real estate market

Bengaluru residential market maintained a steady momentum in the last 5 years with 17.7% and 33.3% surges inready to move and the under construction segment prices, respectively. However, the prices fell by almost 3% in thelast quarter due to the COVID-19 outbreak.

The state government took the initiative to support home buying by reducing the stamp duty on properties costingup to INR 35 lakh. Many local developers have also enabled online booking facilities such as digital signature, onlinepayment, virtual tours, and video conferencing to help in sales during the pandemic and offers such as "Once in aLockdown", are expected to bring the consumers back to the market.

5 YearChange YoY QoQ

-2.8%-1.5%17.7%

5 YearChange YoY QoQ

-0.8%1.7%33.3%

"Theunder-constructionsegment had a decent33% growth in the last5 years, but the recentpandemic brought adecline of 0.8% in Q2

2020"

BengaluruApr-Jun 2020

Parameters India Bengaluru

Demand+ -27% -14%Supply++ -43% -29%Price Index+++ -1.5% -2.8%

"QoQ 2.8% pricedecline in the

ready-to-move segmentwashed away the gainsmade during the

previous six quarters"

Notes:Above parameters represent QoQ change in Q2 2020 atIndia and city level + change in the volume of property searches ++ change in the volume of active listings +++ change in the weighted average price

Source: Magicbricks Research

Prestige Estates

SOBHA Ltd.

Brigade Enterprises

Mahaveer Group

Puravankara Ltd.

Salarpuria Sattva Group

Assetz Property Group

Shriram Properties

SNN Builders

Godrej Properties

Lakeside Habitat Whitefield

Sobha Dream Acres Panathur

Prestige Kew Gardens Yemalur

Prestige Song Of South Begur Road

Prestige Tranquility Budigere

Sobha City Thanisandra

SNR Verity Sarjapur Road

Ittina Neela Electronic City

Prestige Shantiniketan Whitefield

Welworth City Doddaballapur Rd

Average changes in prices for localities in various price segments

Market Dynamics

Ready to Move Price Index

Under Construction Price Index

- Post COVID-19 pandemic, governmenthas allowed partial sales of plots In thelayouts to ease the liquidity situation ofdevelopers and accelerate the layoutdevelopment process.

- State government allows theregularization of over 75,000 landparcels, which were initially a part ofthe BDA development scheme but wereunder unauthorized possession for morethan 12 years, by payment of penalty.

- Shortage of labour, supply chaindisruption and extension in the RERAdeadline by 3 months in Bengaluru islikely to shift delivery of some underconstruction projects by a few months.

"COVID-19 induced aprice decline of 1-3%across most budget

segments"

Key Trends to Watch Out

2014

2015

2016

2017

2018

2019

2020

2,000

4,000

6,000

8,000

10,000

2014

2015

2016

2017

2018

2019

2020

2,000

4,000

6,000

8,000

10,000

Price Bracket (INR per sqft)

< 5,000 5,000-6,000 6,000-7,000 > 7,000

RM UC RM UC RM UC RM UC

1.0%

-2.6%

-1.4%

-1.9%-1.5%

-2.0%

-1.0%

-3.3%

Key Projects

Key Developers based on activelistings

Project Name Locality

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 Q2 2020


Note:The above table represents the top projects by consumerpreference on Magicbricks website in Q2 2020


Notes:1. Ready to move price index represents the weighted average price of completed properties on Magicbricks website as on June 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 June 20202. The trend line represents the average prices of dominant asset class in each locality of the city.


Note:Above table represents the price changes for Ready to move (RM) and Under construction (UC) properties for dominant asset classes in each locality under various pricebuckets as on June 2020


Page 1© magicbricks.com

Above 3 BHK6%

3 BHK42%

2 BHK46%

1 BHK6%

DEMAND

Demand Supply Analysis Bengaluru | Apr-Jun 2020

Demand-supply mismatch emerging in INR <5,000 per sqft price bucket

2 and 3 BHKs together make up for ~ 90% of the demand and supplyWhitefield, Sarjapur Road, BellaryRoad and Electronic City were mostpreferred in Q2 2020

- Bengaluru thrives on a healthy mid-segmentdemand, with both 2 and 3 BHKs each accountingfor more than 40% of the demand and supply.Together they account for 88% of the propertysearches and 92% of the supply.

- However the market is slowly shifting to theaffordable segment, and a small demand-supplymismatch is emerging in the less than INR 5,000per sqft price bucket.

- The demand for 1 BHK and 2 BHKconfigurations is likely to further increase due tothe reduction of stamp duty between 3% to 5%for properties costing upto INR 35 lakh.

"The affordable housingmarket in Bengaluru to growfurther as peripheral areas

develop"

- Whitefield, Sarjapur Road, Bellary Road andElectronic City were the top 4 micromarkets inthe city, supported by factors such asaffordability, better access to IT hubs and soundconnectivity to the airport.

- The extension of metro lines fromBaiyappanahalli – Whitefield and RV Road –Bommasandra is likely to boost the demand forthe economic hubs of Whitefield and ElectronicCity in the future.

Top Micromarkets by consumersearches

Propensity of demand and supply in terms of searches andlistings by localities

Above 3 BHK5%

3 BHK46%

2 BHK46%

1 BHK3%

SUPPLY

6000-700018%

5000-600024%

> 700024% < 5000

34%

SUPPLY Price buckets in INR per sqft

Top Micromarkets by active listings

6000-700014%

5000-600020%

> 700024%

< 500042%

DEMAND Price buckets in INR per sqft

Notes:1. Demand represents property searches on Magicbricks website during Q2 2020, segregated by Bedroom, Hall, Kitchen (BHK) configuration2. Supply represents active listings on Magicbricks website during Q2 2020, segregated by BHK configuration


.Notes:1. Demand represents property searches on Magicbricks website during Q2 2020, segregated by price buckets2. Supply represents active listings on Magicbricks website during Q2 2020, segregated by price buckets


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 Q2 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.


Note:1. Top micro-markets of the city, ranked by their active listings onMagicbricks in Q2 20202. Price ranges represent the range of avg locality prices in themicromarket in INR per sqft.


Note:1. Top micro-markets of the city, ranked by number of searches onMagicbricks in Q2 20202. Price ranges represent the range of avg locality prices in themicromarket in INR per sqft.


Sarjapur Road

Bannerghatta

Tumkur Road

Indira Nagar

Chandapura

Devanahalli

AnjanaPura

Hoskote

Gunjur

© OpenStreetMap

Demand/SupplyDemand

Whitefield 3800 - 8750

Sarjapur Road 3750 - 8350

Bellary Road 3950 - 9900

Electronic City 3000 - 6450

Kanakapura Road 3750 - 9550

Bannerghatta Rd 3350 - 8500

JP Nagar 4050 - 12700

11

22

33

44

55

66

77

Whitefield 3800 - 8750

Sarjapur Road 3750 - 8350

Bellary Road 3950 - 9900

Electronic City 3000 - 6450

Kanakapura Road 3750 - 9550

Bannerghatta Rd 3350 - 8500

Hosur Road 3150 - 8250

11

22

33

44

55

66

87

Micro-Market Price Range Rank Rank Q2-20 Q1-20

Micro-Market Price Range Rank Rank Q2-20 Q1-20


Note:1. Size of the bubble depicts demand, measured by volume of property searches in localities in Q2 20202. Color of the bubble represents price change in Q2 2020, 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

Attibele

Hoskote

Chandapura

Sarjapur-Attibele Rd

Ramamurthy Nagar

Kengeri Town

Kaggadasapura

Kengeri

Gunjur

Singasandra

Kalkere

Bagalur Main Road

Kadugodi

Hosur Road

Electronic City

K R Puram

-1.0%

-7.2%

2.5%

-7.5%

-1.4%

2.5%

-3.6%

0.8%

-5.3%

0.7%

-3.1%

-3.4%

-5.8%

3.5%

0.0%

-1.2%

-1.7%

-0.6%

-2.9%

-2.4%

-7.5%

-4.1%

-3.2%

-6.8%

-7.1%

4,982

4,966

4,954

4,930

4,922

4,907

4,907

4,848

4,795

4,778

4,761

4,711

4,694

4,526

4,493

4,492

4,492

4,365

4,334

4,288

4,187

3,838

3,632

3,562

3,041

< INR 5,000 psf INR 5,000-6,000 psf INR 6,000-7,000 psf > INR 7,000 psf

Price Analysis Bengaluru | Apr-Jun 2020

- Price rationalisation was mostly observed in the established localities of North Bengaluru, including Hebbal, Horamavu, Hennur, and Malleshwaram witnessingprice decline of 5-7%.

- Localities with price increment in the quarter were mostly concentrated in South Bengaluru, including localities of Begur Road, Uttarahalli, and Koramangala. Source: Magicbricks Research

LocalityAvg.Price

PriceChange

Banashankari

Jalahalli

Arakere

Brooke Field

Hoodi Circle

Marathahalli

Kundalahalli

Vijayanagar

HSR Layout

Mahadevapura

Bannerghatta

BEML Layout

Panathur

Hoodi Circle

Kudlu Gate

JP Nagar Phase 7

-1.2%

1.4%

3.4%

1.1%

-3.3%

-0.2%

-5.4%

-7.5%

-6.6%

-0.2%

0.0%

2.8%

-5.1%

-7.5%

-3.6%

2.3%

0.7%

-7.5%

6,633

6,600

6,577

6,569

6,545

6,515

6,399

6,386

6,284

6,277

6,232

6,202

6,095

6,075

6,063

6,045

6,039

6,024

LocalityAvg.Price

PriceChange

Outer Ring Road

Bellandur

C V Raman Nagar

Hebbal Kempapura

Konanakunte

Yeshwantpur

Hebbal

Old Airport Road

Yemalur

JP Nagar Phase 1

Frazer Town

Binnypete

Magadi Road

Cooke Town

Malleshwaram

Basavanagudi

-6.8%

1.1%

-7.5%

-0.6%

-0.8%

-7.5%

2.7%

0.6%

0.0%

-6.0%

0.0%

-7.5%

-7.5%

-5.5%

-5.8%

-5.8%

-6.2%

3.0%

1.4%

-7.5%

13,984

11,123

10,400

10,390

10,321

10,269

9,895

9,793

9,500

9,205

9,107

7,779

7,695

7,587

7,477

7,357

7,339

7,242

7,127

7,010

Note:1. Above is the list of major localities of the city, with information about their average prices and QoQ price changes in Q2 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 Q2 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.

Q2 2020 Price changes for the city's major localities

LocalityAvg.Price

PriceChange

JP Nagar Phase 8

Electronics City Ph 1

Hegde Nagar

Devanahalli

Yelahanka

Chokkanahalli

Subramanyapura

Tejaswini Nagar

Hosa Road

JP Nagar Phase 5

Yelahanka New Town

Nobel Residency

Bommanahalli

Gubbalala

Kogilu

Hulimavu

-1.4%

-2.7%

-2.0%

-4.0%

2.8%

-1.8%

-5.9%

-7.5%

-4.2%

-6.4%

-3.7%

-6.7%

0.1%

0.6%

-5.0%

0.0%

-2.9%

-3.7%

2.0%

0.0%

0.0%

0.9%

3.1%

0.7%

1.7%

0.3%

-4.5%

4.6%

-2.6%

-2.6%

-1.3%

-0.6%

-3.4%

-2.9%

-1.7%

0.3%

2.6%

-5.3%

-7.5%

-3.0%

1.5%

1.3%

0.0%

-1.6%

-6.2%

-0.4%

0.0%

-1.1%

0.0%

-3.9%

-3.4%

-7.5%

-1.0%

-6.2%

5,973

5,888

5,887

5,843

5,839

5,838

5,834

5,826

5,810

5,789

5,752

5,748

5,741

5,702

5,683

5,648

5,635

5,624

5,610

5,579

5,572

5,549

5,506

5,500

5,472

5,466

5,451

5,445

5,434

5,424

5,399

5,396

5,390

5,356

5,318

5,309

5,293

5,271

5,251

5,228

5,223

5,175

5,152

5,151

5,146

5,125

5,123

5,110

5,093

5,092

5,092

5,060

5,060

5,037

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:

Sarjapur-Attibele Rd-4.1%

Budigere Cross-3.4%

Electronic City-3.1%

Sarjapur Road-1.8%

Bannerghatta-7.5%

Mysore Road0.8%

BEML Layout-5.4%

Indira Nagar-0.6%

Rajaji Nagar-6.8%

Chandapura-3.2%

Nagarbhavi-5.3%

Begur Road0.3%

Banaswadi0.3%

Gottigere0.9%

Panathur-0.2%

RT Nagar2.8%

Sarjapur2.0%

Varthur-1.3%

Kengeri-0.6%

Hennur-5.0%

© OpenStreetMap

-7.5% 7.5%

-5% -2.5% 0% 2.5% 5%


PropIndex | Magicbricks · Residential Market Insights Reduction in stamp duty and property...

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