india residential property market overview august 2013

Accelerating success.

INDIA

QUARTERLY UPDATE | AUGUST | 2013

Residential Property Market Overview

www.colliers.com

reseArch & forecAst reportSYDNEY CENTRAL BUSINESS DISTRICT

IndIA resIdentIAL mArketRESEARCh & foRECAST REpoRT

INDIA | AUGUST 2013 | residential

www.colliers.com

1As of June, 2013 (Provisional)2SBI Home Loan Rate for Loan upto INR 30 Lakhs3SBI Fixed Deposit rate for a period of more than one year and amount below INR 1 Crore4Realty Index is a free float weighted index, comprised of real estate development companies in the BSE-500 Index.

ECoNoMIC BARoMETER

RETURN oN ALTERNATIvE INvESTMENTS

Jul-12 Jul-13

repo rAte 8.00% 7.25%

reVerse repo rAte 7.00% 6.25%

crr 4.75% 4.00%

InfLAtIon 7.52% 4.86%

home LoAn rAte 11.00% 9.95%

Jul-12 Jul-13 YoY %

Change

GoLd 29,216 26,717 -8.55%

sILVer 51,572 41,026 -20.45%

fIxed deposIt 9.00% 8.75% -2.78%

eQUItY 17,103 20,034 17.14%

reALtY Index 1,725 1,548 -10.29%

3

4

2

1

repo rate cash reserve ratio Wholesale price Index

ECoNoMIC INDICAToRS

In p

erce

ntag

e

MACRo ECoNoMIC ovERvIEW

India’s Gdp growth was registered at 4.7% in the Jan - mar quarter of the current fiscal, •marginally up from the last quarter figure of 4.5%.

headline inflation, based on the wholesale price index, stood at 4.7% for the month of may 2013 •as compared to 7.55% for the corresponding month of previous year. the reserve bank of India kept the policy rates unchanged despite lower inflation due to various economic factors such as currency depreciation and fiscal deficit.

the rupee plunge 8.6% in the April-June quarter due to massive capital outflows and month end •dollar demand from importers. the rupee closed at an all-time low of 60.72 against the Us dollar in the last week of June.

the overall slowdown in the economy has impacted the residential market sentiments as buyers •were cautious to make long term Investments decision. the slowdown in sales has resulted in increased unsold inventories and downward pressure on capital values. Increasingly projects are offering incentives, and easy payment options.

coLLIers VIeW: there have been limited number of new launches in previous 2-3 quarters. We •anticipate increase in the new launches in coming quarters, as many developers are looking to the festive season to launch their projects. most market’s are extremely price conscious and project pricing will be a key criteria for the success of a project.

4.0

3.0

6.0

5.0

8.0

9.0

7.0

11.0

10.0

12.0

Apr

‘09

feb

‘09

dec‘

09

Apr‘1

1

Apr‘1

2

Jun

‘13

Apr

‘13

feb‘

11

Jun

‘09

Jun‘

10

Apr‘1

0

feb‘

10

Jun‘

11

Jun‘

12

Aug’

08

jun’

08

Apr

‘08

Aug‘

09

Aug‘

10

Aug‘

11

Aug‘

12

dec’

08

oct

‘08

oct

‘09

dec‘

10

oct

‘10

oct

‘11

oct

‘12

feb‘

12

feb‘

13

dec‘

11

dec‘

12

2.0

1.0

0.0

-1.0

-2.0

Source: Goverment of India, Colliers International India Research

CoLLIERS INTERNATIoNAL | p. 3

mUmBAI

seleCt neW PrOJeCts

proJect nAme LocAtIon deVeLoper nAme tentAtIVe possessIon* rAte (per sQ.ft.)**

Aurum Grande kanjurmarg Lodha Group 4Q 2016 10,500

kalpataru elan parel kalpataru Group 4Q 2017 26,500

oriente parel Lodha Group 4Q 2017 22,000

radiance Goregoan kalpataru Group 4Q 2017 13,500

sapphire powai sai Group of Industries 4Q 2015 10,500

CITY RESIDENTIAL BARoMETER

2Q 2013 3Q 2013f

capital Value

rental Value

new project

construction pace

Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft.

MUMBAI

In 2Q 2013, mumbai’s residential market •witnessed an increase in launches of premium residential projects in micro-markets like the powai, Goregaon, kanjurmarg and parel. these projects were priced in the range of Inr 10,500 - 26,500 per sq ft.

construction activities remained slow, •resulting in no major new supply during the quarter.

demand for smaller residential properties •from investors, as well as end-users, has picked up. to cater to lower ticket sizes; many developers are focusing on developing smaller unit sizes.

capital values for prime residential properties •remained stable, barring select locations which witnessed marginal increase in the range of 1 - 2% QoQ.

the rental values of premium residential •properties increased marginally in the range of 1 - 2% QoQ in almost all of the micro-markets, with the exception of micro-markets in south-central locations like malabar hill, Altamount road, carmichael road, Breach candy, napeansea road, peddar road, colaba and cuffe parade, which experienced a marginal decrease in rents of 1% QoQ.

this quarter the rail link between churchgate •and dahanu road became operational, which will improve the connectivity of the western suburbs to the south mumbai area.

coLLIers VIeW:• demand for smaller residential units in the primary market is estimated to remain healthy due to smaller ticket size. capital values in suburban areas will witness a moderate increase in view of the substantial new supply that is anticipated in medium term.

0

10,000

20,000

30,000

40,000

60,000

70,000

50,000

80,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13f

1Q20

14f

1Q20

11

3Q20

11

80,000

40,000

50,000

70,000

60,000

10,000

20,000

30,000

0

Micro Market ongoing price (p.S.f)

thane-kalyan 4,000 - 8,000

navi mumbai 3,500 - 7,500

Virar- Boisar 3,000 - 6,000


prab

hade

vi

colaba, cuffe parade

sout

h m

umba

i

malabar hill, Altamount road, carmichael road

Worli

Wor

li

Breach candy, napeansearoad, peddar road

prabhadevi

Band

ra

Bandra

sant

acru

z

santacruz

Andh

eri

Andheri

pow

ai

powai

khar

khar

Juhu

Juhu

200

150

100

50

0

powai

khar

prabhadevi

Breach candy, napeansea road, peddar road

malabar hill, Altamount road, carmichael road

colaba, cuffe parade

Bandra

Juhu

Andheri

Worli

santacruz

Inr

per

sq.ft

.

Note:Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis.

Note: * As mentioned by developer ** Base selling price as quoted by developer

AvERAGE CApITAL vALUE RANGE

AvERAGE RENTAL vALUE

AvERAGE CApITAL vALUE TRENDS

INvESTMENT oppoRTUNITIES

p. 4 | CoLLIERS INTERNATIoNAL

2Q 2013 3Q 2013f

capital Value

rental Value

new project

construction pace


deLhI

seleCt OnGOinG PrOJeCts


capital Greens shivaji marg dLf Ltd. 2Q 2015 14,000

castlewood okhla Indiabulls Ltd. 4Q 2013 12,800

kings court Greater kailash- II dLf Ltd. 1Q 2015 36,000

Queens court Greater kailash- II dLf Ltd. 1Q 2015 36,000

Winter hills dwaraka morh Umang realtech 4Q 2013 8,750


DELhI

during 2Q 2013, limited supply was added to •delhi’s premium residential inventory. only a few small-scale residential redevelopment projects were ready for possession in locations like Vasant Vihar, Anand niketan, panchsheel park, Anand Lok and defence colony.

In the same quarter, capital and rental values •for premium residential properties remained stable in all of the micro-markets; not much activity was noticed during the quarter. Absorption remains upbeat however, and various farm-house deals were concluded in micro-markets like Westend Green and chhattarpur.

this quarter the delhi Urban Art commission •has cleared the redevelopment plan of kidwai nagar (east). the project is a vision project of ministry of Urban development and will be developed by the national Buildings construction corporation (nBcc) with an investment of more than Inr 4,000 crore. the project will comprise 4,747 residential units and about 1.3 million sq.ft. of commercial space adjoining prime areas such as AIIms, dili haat and InA market. the residential apartments are priced at the rate of Inr 10,004 per sq ft.

the Union cabinet clears the Urban •development ministry proposal to repeal the delhi rent control Act, 1958. According to the Urban development ministry the new act will be more balanced as compared to 1958 Act. this would benefit the landlords who are bound by rent controls and getting very low rentals even the property prices increase many folds.

coLLIers VIeW:• major infrastructure activities like overhead bridges and extensions to metro lines will help to boost the residential real estate market in the city. capital values are expected to remain upbeat due to limited upcoming residential supply and consistent demand.

15,000

0

30,000

45,000

75,000

90,000

105,000

60,000

120,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

Inr

per

sq.ft

.

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13f

3Q20

13f

1Q20

14f

1Q20

11

3Q20

1140,000

50,000

60,000

70,000

80,000

100,000

90,000

30,000

20,000

10,000

0

Anan

d ni

keta

n,

Vasa

nt V

ihar

Anand niketan, Vasant Vihar

panc

hash

ila, A

nand

lok,

niti

Bagh

, sdA

panchashila, Anandlok, niti Bagh, sdA

frie

nds

colo

ny,

mah

aran

i Ba

gh

friends colony, maharani Bagh

shan

ti ni

keta

n,

Wes

tend

shanti niketan, Westend

Grea

ter

kaila

sh

I & II

, sou

th

exte

nsio

n

Greater kailash I & II, south

extension

Golf

Link

s, J

or B

agh,

su

nder

nag

ar

Golf Links, Jor Bagh, sunder nagar

chan

akya

pur

i

chanakya puri

prith

vira

j roa

d,

Aura

ngze

b ro

ad

prithviraj road, Aurangzeb road

200

160

120

80

40

0

Golf Links, Jor Bagh, sunder nagar

panchashila, Anandlok, niti Bagh, sdA

Greater kailash I & II, south extension

chanakya puri shanti niketan, Westend

friends colony, maharani Bagh

prithviraj road, Aurangzeb road

Anand niketan, Vasant Vihar







2Q 2013 3Q 2013f

capital Value

rental Value

new project

construction pace

GURGAoN

during this quarter the city witnessed fewer •project launches, compared to previous quarter. projects launched were mainly located in the vicinity of dwarka expressway, in the price range of Inr 6,500 - 14,500 per sq ft.

construction activities remain slow due to the •monsoon season, resulting in the completion of few residential projects/ parts of projects like “palm drive” by emaar mGf on Golf course extension road and “tulip orange” by tulip developer on southern peripheral road.

during the surveyed quarter, demand •remained muted in both the primary and secondary markets. few developers started offering various easy payment plans such as subvention plan and emI waiver plan to boost the demand.

the limited activity in both the primary and •secondary markets resulted in stable capital and rental values across the city QoQ. the lower sales volumes is attributed to the high price points and the prevailing negative economic sentiment.

this quarter, private equity firm Ask property •Investment Advisors has invested around Inr 147 crore into Ats Group’s housing project in Gurgaon located at dwaraka - Gurgaon expressway.

coLLIers VIeW:• Golf course extension, sohna road, southern peripheral road and dwarka expressway will remain the most sought after micro markets. new sectors in sohna region have started witnessing investor activities with the launch of few new projects in this micro-market. Looking ahead, we anticipate increased traction in the upcoming festive season, with developers offering easy payment plans.


GUrGAon



0

5,000

15,000

10,000

20,000

25,000

30,000

35,000

45,000

40,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

Inr

per

sq.ft

.

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13f

1Q20

14f

3Q20

13f

1Q20

11

3Q20

11

6,000

8,000

10,000

12,000

14,000

16,000

18,000

4,000

2,000

0


Golf course extension road 7,500 - 8,500

sohna region 3,500 - 4,800

pataudi road 4,500 - 5,500

new Gurgaon 3,500 - 4,500

80

60

40

20

0

Golf

cour

se r

oad

Golf course road

sohn

a ro

ad &

ext

sohna road & ext

dLf

phas

e I

dLf phase I

sush

ant L

ok

sushant Lok

nh -

8

nh - 8

dLf phase Inh-8

Golf course road sushant Lok

sohna road & ext

seleCt neW PrOJeCts


dLf crest sector 42 dLf Ltd. 4Q 2017 14,500

Gurgaon Gateway sector 112 tAtA housing 4Q 2017 10,500

primera sector 37d ramprastha Group 4Q 2016 6,500

Vatika expressway plot sector 88A Vatika Group 4Q 2015 6,600

Vatika soverign sector 87 Vatika Group 4Q 2017 8,000








2Q 2013 3Q 2013f

capital Value

rental Value

new project

construction pace


noIdA


NoIDA

during 2Q 2013, there was a decrease in •new project launches, compared to previous quarters. most of the newly launched projects were located in sectors 75, 77 and 79, and were priced in the range of Inr 4,400 - 5,100 per sq ft.

during the same quarter, construction •activities remained slow due to the rainy season and not much supply added to the market except for a few units in projects such as Lotus Boulevard and supertech 34 pavilion.

capital values in the secondary sales market •witnessed marginal appreciation in sectors located along the noIdA expressway while all other micro markets recorded stable capital values due to limited traction in both primary and secondary market.

new projects with modern amenities were •favored by tenants due to affordable rental. continuous addition of new supply kept the rental values stable in almost all the micro market.

during this quarter the noIdA and Greater •noIdA authorities raised land rates, which may indirectly impact investors and end-users who are seeking residential investment opportunities in these locations due to increased cost. In noIdA, allotment rates for group housing, residential and institutional properties have been raised by 15%, while commercial and industrial land rates have increased by 30% and 11.25% respectively.

coLLIers VIeW:• We anticipate increased end-user activity in the festive season, with developers offering attractive promotional payment schemes like subvention and emI wavier plans. the capital values are expected to remain stable in the coming few quarters due to large inventory in pipeline.

1,500

3,000

0

4,500

6,000

10,500

9,000

7,500

12,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

3Q20

09

1Q20

10

3Q20

12

1Q20

13

3Q20

13f

1Q20

14f

1Q20

11

3Q20

10

1Q20

12

3Q20

11

12,000

10,500

9,000

7,500

6,000

4,500

3,000

1.500

0


noIdA expressway 3,800 - 5,500

sector 71 to 83 4,500 - 5,800


40

30

20

10

0

sect

or 2

8, 2

9, 3

0

sector 28, 29, 30

sect

or 9

2/93

sector 92/93

sect

or 6

1, 62

., 63

sector 61, 62., 63

sect

or 5

0

sector 50

sect

or 4

4

sector 44

sector 61,62,63

sector 92 / 93 sector 28,29,30

sector 50 sector 44

Inr

per

sq.ft

.







seleCt neW PrOJeCts


civitech stadia sector 79 civitech developers pvt. Ltd. 2Q 2016 4,800

elite Golf Green sector 79 hr oracle developers 4Q 2015 4,600

Griha pravesh sector 77Griha pravesh Buildteck & phadnis Infrastructure

2Q 2014 5,100

White house- II sector 75 maxblis constructions pvt. Ltd. 4Q 2015 4,500


seleCt neW PrOJeCts


mandarin omr radiance realty 4Q 2016 6,400

sheltrex city Gst road sheltrex 4Q 2016 2,060

padmalaya siruseri (omr) real Value promoters 4Q 2016 3,200

sai enclave Arasankazhani (omr) mmrf realty 4Q 2015 4,000

the point Guindy ksV developers 4Q 2015 14,000

Vista oceana padur (omr) mmrf realty 4Q 2015 6,000


chennAI


ChENNAI

In 2Q 2013, several new projects were •launched in the city. Locations like old mahabalipuram road (omr), Guindy and Gst road saw maximum new launches. projects were priced in the range of Inr 3,000 - 6,500 per sq ft.

this quarter the city witnessed completion •of many mid-scale projects in micro-markets like Besant nagar, shastri nagar, palavakkam, Uthandi and thiruvanmiyur.

following last quarter’s capital value trend, •the secondary sales market for premium residential properties appreciated in the range of 4 - 7% QoQ, in micro-markets such as nungambakkam, Adyar, Besant nagar, t nagar Alwarpet / r A puram and Velachery. this was primarily because, new projects were being launched at a higher price, and there was an increase in the guideline rates for these areas. however micro-markets like sholinganallur and siruseri / kazipattur remained stable.

the residential rental market gained •momentum during the quarter; however rents remained stable across the city for premium residential properties, except Adyar, where rents increased by 9% QoQ.

the state Government has planned to build •a 45 kilometre elevated road along the It corridor from taramani to mamallapuram. this will further boost real estate activity in the area between these two micro-markets.

coLLIers VIeW:• In the last few quarters chennai’s residential market has witnessed growth. the developing corridors, along with omr, will see an increase in capital values due to high demand from the mid-end segment. Looking ahead, capital values are expected to increase moderately considering the demand coming from both end-users and investors.

Adya

r

Anna

nag

ar

nung

amba

kkam

Alw

arpe

t / r

A p

uram

Vela

cher

y

shol

inga

nallu

r

siru

seri/

ka

zipa

ttur

t na

gar

Beas

ant

naga

r

Boat

clu

b

6,000

2,000

10,000

18,000

14,000

22,000

26,000

30,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

sholinganallur

Velachery

Alwarpet / r A puram

t nagar

Beasant nagar

Adyar

Anna nagar

nungambakkam

Boat club

siruseri/ kazipattur

Boat club

siruseri/ kazipattur

Velachery

sholinganallur

Anna nagar

t nagar

AdyarBeasant nagar

nugambakkam

Alwarpet / r A puram

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13f

3Q20

13f

1Q20

14f

1Q20

11

3Q20

11

25,000

21,000

17,000

13,000

9,000

5,000

1,000


Velachery 5,000 - 7,000

sholinganallur 3,500 - 4,200

siruseri/ kazipattur 2,500 - 3,900

Inr

per

sq.ft

.

75

60

45

30

15

0








2Q 2013 3Q 2013f

capital Value

rental Value

new project

construction pace


2Q 2013 3Q 2013f

capital Value

rental Value

new project

construction pace


BenGALUrU

seleCt neW PrOJeCts


klassik Landmark sarjapur road klassik developers 4Q 2015 3,700

prestige sunrise electronic city prestige developers 4Q 2017 3,900

samruddhi rthythm hennur samruddhi developers 4Q 2016 3,450

sJr palms kudlugate sJr developers 4Q 2016 4,200

sobha Indraprstha rajajinagar sobha developers 4Q 2016 4,200

Valmark Apas hulimavu Valmark developers 4Q 2015 6,500




BENGALURU (BANGALoRE)

during 2Q 2013, micro-markets like hulimavu, •hennur, sarjapur road, rajajinagar, kudlugate and electronic city saw the highest number of new launches. residential demand was driven by both investors and end-users. premium residential projects were priced in the range of Inr 3,500 - 6,500 per sq ft.

In the surveyed quarter, Bengaluru witnessed •the completion of various premium projects/ parts of projects including “regency floradale” by Ashed properties at Lavelle road, “Brigade sonata” by Brigade Group at palace road and “chaitanya samarpan” by chaitanya developers at Whitefield. few other mid-range projects were also completed on sarjapur road and hmt Layout micro markets.

capital values in the secondary sales markets •remained stable, except for cooke town where capital values increased by 2% QoQ, due to limited supply.

rents in micro-markets such as Airport road, •Bannerghatta road and Whitefield increased in the range of 2 - 8% QoQ. most of the demand in this segment came from employees of the It/Ites sector. All other micro-markets remained stable.

during this quarter, the Bangalore metropolitan •region development Authority (BmrdA) framed the draft master plan for Bengaluru. the revised plan envisages a compact, balanced and equitable urban growth pattern for the city.

coLLIers VIeW: the city’s residential market •will continue to remain active, as construction of various residential projects is in full swing and premium and mid-range projects were launched across various micro-markets. We anticipate that residential prices will remain stable in the near future due to the huge supply in the pipeline.

4,000

0

8,000

16,000

12,000

20,000

24,000

28,000

32,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth


25,000

20,000

15,000

10,000

5,000

0



Airport road 5,000 - 6,000

Bannerghatta road 4,200 - 6,000

Whitefield 4,400 - 6,700

Yelahanka 3,800 - 6,000

Yela

hank

a

Yelahanka

Bann

ergh

atta

roa

d

Whitefield (Appts)

Airp

ort r

oad

Airp

ort r

oad

koramangala

Whi

tefie

ld

Bannerghatta road

Jaya

naga

r

Indiranagar

cook

e to

wn

Airport road

kora

man

gala

palace orchard

Indi

rana

gar

Jayanagar

pala

ce o

rcha

rd

cooke town

cent

ral

central80

60

40

20

0

1Q20

08

3Q20

08

1Q20

10

1Q20

09

3Q20

09

3Q20

10

1Q20

11

3Q20

12

1Q20

13

3Q20

13f

1Q20

14f

1Q20

12

3Q20

11

central

Yelahanka

koramangala

Indiranagar

Jayanagar

Bannerghatta road

palace orchard

cooke town

Airport road

Whitefield

Inr

per

sq.ft

.





2Q 2013 3Q 2013f

capital Value

rental Value

new project

construction pace

koLkAtA

seleCt neW PrOJeCts


Godrej platinum Alipore Godrej Group 4Q 2016 19,000

Greenfield oasis Bakhrahat road Bengal Greenfield 4Q 2016 2,350

kings residency rajarhat Vibgyor Group 4Q 2016 3,000

modello highs e m Bypass tirupati Awas 4Q 2017 4,800

mounthill fusion rajarhat mounthill realty 4Q 2016 3,750

symphony tower ho chi minh sarani mainaak Group 4Q 2016 3,600





koLkATA

during 2Q 2013, kolkata’s residential market •saw new launches in micro-markets like em Bypass, Bakhrahat road, rajarhat and Alipore. most of these projects were launched in the mid-range, and were priced from Inr 2,300 - 4,800 per sq ft, except “Godrej platinum” by Godrej, which was priced at Inr 19,000 per sq ft.

during the same quarter, developers •accelerated their construction activities, resulting in the completion of various projects or project phases, including “purti Bloom” and “purti flowers” by purti Group at taratala, “meera Gardens” by Vibgyor housing at madhyamgram and “manjuri enclave” by sunirman Infrastructure at narendrapur.

capital values in the premium residential •market increased this quarter across all micro-markets in the range of 3 - 13%. however, micro-markets in the peripheral locations remained stable.

rental values continued to remain stable due to •weaker economic sentiments however, central locations witnessed marginal appreciation due to consistent demand and limited availability.

coLLIers VIeW:• residential sales in peripheral locations are showing signs of growth due to the lower ticket size. In view of ceiling on acquisition of large tracts of land we anticipate a slowdown in the new launches of the projects in coming quarters. capital and rental values are expected to remain stable across the city, while south kolkata may experience a marginal increase due to the limited availability of properties.

3,000

1,000

7,000

5,000

11,000

9,000

13,000

15,000

17,000

19,000

21,000

Inr

per

sq.ft

.


2,000

4,000

0

6,000

8,000

10,000

12,000

14,000

16,000

18,000



tollygunge 3,600 - 4,800

Behela 2,900 - 3,700

salt Lake 4,000 - 5,500

em Bypass 4,000 - 7,000

new town -rajarhat 3,200 - 4,600

Alip

ore

Bhawanipur

Bally

gung

e

pA shah road

Bhaw

anip

ur

tollygunge

em B

ypas

s

Loudon street

pA s

hah

road

Behela

Loud

on s

tree

t

Alipore

new

tow

n -r

ajar

hat

em Bypass

salt

Lake

Ballygunge

tolly

gung

e

salt Lake

VIp

road

VIp road

Behe

la

new town rajarhat

Bhawanipur

em Bypass

Ballygunge

Behela

tollygunge

p A shah road

new town - rajarhat

Loudon street

Alipore

VIp road

salt Lake

1Q20

08

3Q20

08

1Q20

10

1Q20

09

3Q20

09

3Q20

10

1Q20

11

3Q20

12

1Q20

13

3Q20

13f

1Q20

14f

1Q20

12

3Q20

11

Inr

per

sq.ft

.

50

40

30

20

10

0


Inr

per

sq.ft

. per

mon

th




2Q 2013 3Q 2013f

capital Value

rental Value

new project

construction pace

pUne

seleCt neW PrOJeCts


Artemis sinhagad road calyx Group 1Q 2016 6,000

kumar pinakin Baner kumar properties 2Q 2015 5,500

kunal Aspiree Balewadi kunal Group 2Q 2016 5,600

kunal Iconia mamurdi kunal Group 4Q 2016 3,700

Le reve kharadi Ami estates LLp 2Q 2014 5,900

marvel Aquanas kharadi marvel realtors 2Q 2015 5,750





pUNE

In 2Q 2013, fewer residential projects were •launched compared with the previous quarter; most of the launched projects were located in areas such as Baner-Balewadi, Bavdhan, kondhwa, kharadi, and Wakad. new launches were in the an average price band of Inr 4,000 - 7,000 per sq ft

this quarter continued to register a slowdown •in construction activities, further delaying completion of under-construction projects and ready possessions.

similar to the previous quarter, capital values •in pune remained stable in most micro-markets. however, the nIBm-Undri-kothrud, pimpri chinchwad-chakan and magarpatta-hadapsar micro-markets registered an average increase of 2 - 6% and Baner-pashan-hinjewadi-Wakad and Bavdhan-kothrud-Warje micro-markets, prices were increased by around 10% QoQ.

during 2Q, rental values remained stable in •almost all the micro-markets in pune, with marginal increase in prime areas in the north-west and north-east micro-markets.

during this quarter, the Union ministry of •Urban development has revised pune’s metro rail project which will commence construction between the first corridor of pimpri chinchwad and swargate and the second corridor between Vanaz and ramwadi, with a total length of 31.5 kilometres.

coLLIers VIeW: pune’s residential market •continues to witnessed end-user as well as investor demand in affordable residential projects. nh4 Bypass will remain the location of interest as it is emerging as preferred location from mid-range buyers. We anticipate marginal appreciation in capital values in the coming quarter.

1,000

3,000

7,000

5,000

9,000

13,000

11,000

15,000

Inr

per

sq.ft

.


11,000

10,000

8,000

9,000

7,000

6,000

5,000

4,000

3,000

2,000



kalyani nagar/Viman nagar/kharadi 5,000 - 12,000

Baner/hinjewadi/Wakad/pashan 3,800 - 6,000

kothrud/Bavdhan/Wajre 3,800 - 6,000

nIBm/Undri/kondhwa 3,800 - 5,000

pimpri/chinchwad/chakan 2,500 - 4,500

kaly

ani n

agar

/Vi-

man

nag

ar/k

hara

di

Bhaw

anip

ur

kalyani nagar/Viman nagar/kharadi Bhawanipur

decc

an/c

amp/

Boat

clu

b

deccan/camp/Boat club

Bane

r/h

inje

wad

i/W

akad

/pas

han

Baner/hinjewadi/Wakad/pashan

mag

arpa

tta/h

adap

sar

magarpatta/hadapsar

nIBm

/Und

ri/ko

ndhw

a

nIBm/Undri/kondhwa

koth

rud/

Bavd

han/

Waj

re

kothrud/ Bavdhan/ Wajre

pim

pri/c

hinc

hwad

/ch

akan

pimpri/chinchwad/chakan

30

25

20

15

10

5

0

1Q20

09

3Q20

09

1Q20

10

3Q20

10

1Q20

11

3Q20

11

3Q20

12f

1Q20

14f

1Q20

13

3Q20

12

1Q20

12

kalyani nagar/Viman nagar/kharadi

kothrud/Bavdhan/Wajre

nIBm/Undri/kondhwa

pimpri/chinchwad/chakan

deccan/camp/Boat club/central pune

magarpatta/hadapsar

Baner/hinjewadi/Wakad/pashan

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth






Mumbaithe high-end residential real estate markets in mumbai include malabar hill, Altamount road, carmichael road, napean sea road, Breach candy, colaba, cuffe parade, prabhadevi, Worli, Bandra, khar, santacruz, Juhu and powai.

delhithe prime residential areas in delhi are in the south region and comprise Vasant Vihar, Westend, shanti niketan, Anand niketan and central delhi locations. these areas enjoy proximity to embassies, the airport and central commercial areas - connaught place.

Gurgaonthe prime residential locations of Gurgaon include Golf course road, dLf phase I, sushant Lok and sohna road. the delhi- Jaipur highway (nh-8) is also emerging as a preferred residential location owing to its proximity to the national capital.

nOidanoIdA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and taj express highway.

Chennaithe prime residential areas in chennai include thiruvanmiyur, Valmiki nagar and Besant nagar, r.A puram, mylapore and Adyar in south chennai, nungambakkam, chetpet, poes Garden, egmore, Alwarpet, t. nagar in central chennai; and Anna nagar, kilpauk in north West chennai.

Bengaluru (Bangalore)the residential market of Bengaluru comprises both apartments and independent residences. currently, high-end residential developments are mainly concentrated along the cBd, and eastern and south precincts of the city. recently, northern Bengaluru has also witnessed a spree of realty activity facilitated by the new International Airport at devanhalli.

Kolkatathe prime residential areas in kolkata include pA shah road, tollygunge and Bhawanipur in south kolkata, Alipore and Behala in south-west kolkata, Loudon street and Ballygunge in central kolkata; and salt Lake, em Bypass and VIp road in north kolkata.

Pune the prime residential areas in pune include kalyani nagar, Viman nagar, Boat club road, nIBm road, magarpatta, hadapsar, koregaon park. recently, increased activities has been witnessed in pimpri-chinchwad, Baner-pashan and kondhwa.

RESIDENTIAL SUBMARkETS

CITY BARoMETERS

Increasing as compared to previous quarter

decreasing as compared to previous quarter

remained stable from previous quarter

colliers International (India) provides property services to property Investors and occupiers. We deliver customised service solutions utilising local and global knowledge in partnership with our clients via our property Investment and occupier service lines. these service lines include - office services, facility management, project management, residential services, Investment services and Valuation & Advisory services.

www.colliers.com/india

for national residential services related queries please contact:

poonam mahtani, national director residential services & knowledge systems [email protected]: +91 22 4050 4551

This book is printed on 100% Recyclable paper

india | AUGUST 2013


aUtHOrs

amit Oberoi MriCsnational director, Valuation & Advisory; researchemail: [email protected]

surabhi arora MriCsAssociate director, researchemail: [email protected]

sachin sharmaAssistant manager, researchemail: [email protected]

Heliana ManoAssistant manager, research email: [email protected]

for general queries and feedback :[email protected] tel: +91 124 456 7580

this report and other research materials may be found on our website at www.colliers.com/India. Questions related to information herein should be directed to the research department at the number indicated above. this document has been prepared by colliers International for advertising and general information only. colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.

© copyright 2012 - 2013 All rights reserved.

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OFFICE PROPERTY MARKET OVERVIEW INDIA

QUARTERLY UPDATE | JUlY | 2013

Accelerating success. Accelerating success.

INDIA

QUARTERLY UPDATE | MAY | 2013

Residential Property Market Overview ASIA PACIFIC

OFFICE MARKET OVERVIEW1Q 2013


Trade Flows Bolster Industrial Demand in Asia and the Americas> Despite anemic U.S. job growth, demand for North American industrial

warehouse space and modern distribution centers remains strong. In Q1 2013, the North American vacancy rate declined for the eighth straight quarter, down 20 basis points to 8.20%. Canada’s vacancy rate stands at 4.13%.

> Thanks in part to a recent drop in exports to the United States, Mexico has seen slowing economic growth. In Q1 2013, several Mexico City industrial warehouses were vacated, slightly increasing the vacancy rate to 3.49%.

> While occupier demand for industrial property in Brazil remains strong, the market now appears to have stabilized into a more rational mode of sustained growth. São Paulo has seen positive net absorption, in spite of the final tally in 2012 showing a 23% decrease over the previous year.

> Demand for Beijing’s logistics properties remained as strong as it has been since 2011. Rents grew by 11.41% year-over-year as of the end of Q1 2013. Shanghai’s industrial sector remained stable, with average asking rents for ground floor premises of high quality facilities in both the logistics and workshop sectors unchanged.

> In Hong Kong, high quality warehouse buildings are nearly fully occupied. Those users seeking to expand or rationalize their real estate costs have had to consider the option of split operations in lower quality buildings.

> Indian economic growth remained sluggish through the end of 2012, however we expect industrial activity to improve, thanks to recent government actions. These include the government-proposed National Investment and Manufacturing Zones and the newly approved 51% foreign direct investment in multi-brand retail trading.

Global | Industrial | Midyear 2013HIGHLIGHTS

* December 2013 Rent (USD/PSF/YR)** Local currency

Global Top 10 Industrial Warehouse Rents*

6-Month Change in Rent**

LONDON (HEATHROW)

HONG KONG

SINGAPORE

TOKYO

OSLO

GENEVA

PARIS

HELSINKI

MINSK

SYDNEY

21.95

21.83

21.02

20.61

20.04

16.20

14.70

14.70

13.23

13.23

MINSK

OSLOSINGAPORE

SYDNEY

11.1%

3.9%

2.2%

12.5%

PARIS

HELSINKI

GENEVA

TOKYO

HONG KONG

LONDON - (HEATHROW)

LEGEND

EMEA

APAC

THE INTERNATIONAL INDIAN May - June 201344

CONTENTS

45 Indian Real Estate Unplugged

46 Gurgaon

48 NOIDA

52 Mumbai

53 Pune

54 Bengaluru

55 Chennai

56 Hyderabad

56 Kochi

57 Maisuru

57 Thiruvananthapuram

58 Current Market Prices

61 Do’s and Don’ts of Real Estate Investments

62 Dubai Residential Market Hots up Th

e Sp

ring-

Sum

mer

REA

L ES

TATE

FO

CU

S

2013 OUTLOOKGLOBAL OFFICE

WWW.COLLIERS.COM

2012 | OFFICE

The global economy has seen recent headwinds from the smoldering eurozone debt crisis, slowing growth in China’s economy and the forecasted American fiscal cliff. Yet our overall global view of office real estate is moderately positive. While many large occupiers have taken a wait-and-see attitude toward the global economy, others are leasing up much-needed space to accommodate expanding operations. Quality office buildings in major global cities are seeing consistent demand from both occupiers and investors.

U.S. is showing gradually lowering vacancy rates. Canada’s office market continues to perform well and is seeing notable development activity in major markets. Office absorption has been largely driven by Intellectual Capital, Energy and Education (ICEE) sectors.

Mexico and Brazil report slightly higher vacancies, due to a combination of speculative construction and slackening economic growth. Yet São Paulo still boasts the ultra-low vacancy rate of 3.3%.

Average Central Business District (CBD) office rents remained broadly unchanged across key EMEA markets, but this has been a result of limited supply more than increased demand. Business confidence across Europe is firmly negative, which does not bode well for the next year of activity.

China’s slowing growth has dampened office demand in some Asian markets. Beijing’s office market remains healthy, but appeared lackluster when compared to an extremely active 2011.

GLOBAL OFFICE MARKETS SHOW STABILITY IN THE FACE OF HEADWINDS

GLOBAL CAPITALIZATION RATES /PRIME YIELDS: 10 LOWEST CITIES

MARKET (Ranked byJune 2012)

JUNE 2012

DEC 2011

JUNE 2011

Taipei �.�� .�� .�� Hong Kong �.�� .�� .�� Vienna �.�� .�� .�� Singapore �.�� .�� .�� London - West End �.�� .�� .�� Zurich �.�� .�� .�� Geneva �.�� .�� .�� Beijing �.�� .�� .�� Paris �.�� .�� .�� Munich �.�� .�� .�� Tokyo �.�� .�� .��

GLOBAL OFFICE OCCUPANCY COSTS:TOP 10 CITIES

MARKET (Ranked byJune 2012)

JUNE2012

DEC 2011

JUNE 2011

Hong Kong ��.�� .�� .�� London – West End ��.�� .�� .�� Tokyo* ��.�� .�� .��Rio de Janeiro ��.�� .�� .��Paris ��.�� .�� .��Moscow ��.�� .�� .��London – City ��.�� .�� .��Perth ��.�� .�� .��Geneva ��.�� .�� .��São Paulo ��.�� .�� .��

CBD CAP RATE (%)

CLASS A / NET RENT (USD/SF/YR)

10.25

9.00

9.00

4.90

4.75

4.70

4.00

4.00

3.90

3.50

2.67

2.50

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0

Rio de Janeiro

Mexico City

Buenos Aires

New York, NY - Midtown South Manhattan

Vancouver, BC

New York, NY - Midtown Manhattan

London - West End

Zurich

Singapore

Vienna

Hong Kong

Taipei

Asia Pacific

EMEA

North America

Latin America

TOP THREE MARKETS BY REGION: JUNE 2012 CAP RATE (%)

*Tokyo rents listed are gross rents.

Mumbai : Vaibhav kumar, office director [email protected] IndiaBulls finance centre, 1701-A, 17th floor, tower 3, elphinstone mills, senapati Bapat marg, mumbai, India - 400 013. tel : +91 22 4050 4527, fax : +91 22 2351 4272

delhi nCr : Ajay rakheja, office director [email protected]

new delhi : statesman house, 4th floor, Barakhamba road, connaught place, new delhi, India - 110001 tel : +91 11 3044 6423, fax : +91 11 3044 6500

Gurgaon : technopolis Building, 1st floor, dLf Golf course main road, sector 54, Gurgaon, India - 122002 tel : +91 124 456 7500, fax : +91 124 456 7502

Bengaluru : Goutam chakraborthy, office director [email protected] prestige Garnet, Level 2, Unit no.201/202, 36 Ulsoor road, Bengaluru, India - 560 042 tel : +91 80 4079 5500, fax : +91 80 4112 3131

Pune : suresh castellino, office director [email protected] hotel Le meridian, 101, r.B.m. road, pune, India - 411 001 tel : +91 20 4120 6438, fax : +91 20 4120 6434

Chennai : kaushik reddy, office director [email protected] heavitree complex, Unit 1c, 1st floor, 23, spurtank road, chetpet, chennai, India - 600 031 tel : +91 44 2836 1064, fax : +91 44 2836 1377

Kolkata : soumya mukherjee , office director [email protected] Infinity Business centre, Infinity Benchmark, room no 13, Level 18, plot G - 1, Block ep & Gp, salt Lake sector V, kolkata - 700 091 West Bengal, India tel : +91 33 2357 6501, fax : +91 33 2357 6502

Colliers International 1 www.colliers.com/india

Impact on Real Estate I Neutral

THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATESECTOR ARE AS FOLLOWS:

1Q 2013 | RESEARCH

Source: www.bseindia.com | Feb 28, 2013

Company Change (%)BSE SENSEX -1.52

-2.72

-2.05

-3.54

-0.27

-2.97

-5.62

0.23

-7.51

-2.12

-4.00

-0.69

-2.93

-0.77

-0.04

-0.99

-7.95

Realty Index

Anant Raj Ltd.

D B Realty Ltd.

DLF Ltd.

Godrej Properties Ltd.

HDIL

Hubtown Ltd.

Indiabulls Real Estate

Mahindra Lifespace

Orbit Corporation Ltd.

Parsvnath Developers

Peninsula Land Ltd.

The Phoenix Mills Ltd.

Sobha Developers Ltd.

Sunteck Realty Ltd.

Unitech Ltd.

UNION BUDGET 2013 - A SNEAK PREVIEW

Honorable Finance Minister P. Chidambaram started his budget speech 2013-14 with the pretext of slowed global economic growth in 2012. He acknowledged that the Indian Economy is challenged and mentioned that the Indian economy is constrained because of a high fiscal deficit; its reliance on foreign inflows to finance the current account deficit; decreased savings and lower investment; a tight monetary policy to contain inflation and strong external headwinds. He assured that the budget spelled out measures for each of the above mentioned issues. The agenda for the Union Budget 2013-14 is set for ‘higher growth leading to inclusive and sustainable development’. The finance minister projected the economy to grow by 4.8% in the next fiscal down from 5.5% in 2012-13.

The real estate sector had high hopes this year from the Budget. However, the budget remained silent on most of the major issues such as enactment of the Real Estate (Regulation and Development) Bill, revision of Land Bill, granting industry status to the sector or infrastructure status to the much ailing affordable housing sector etc. None the less, there are a few small measures that have been taken for the real estate industry in this budget.

1% TDS on value of the transfer of immovable properties where the consideration exceeds INR 50 lakh; No TDS for agricultural land transfer;

Impact: This move would help to increase the much needed transparency in the real estate transactions. The provision of deducting 1% as TDS will improve the reporting of such transactions and improve the government revenue from capital gain taxes arising from such transactions.

Increase in excise duty rate on marble from INR 30 per sq. meter to INR 60 per sq. meter;

Impact: The increase in excise duty rate on marble will affect the sector byincreasing in the overall construction cost. This impact will however be minor considering the percentage of cost allocated to this particular construction material and the alternates available. The impact will probably be felt more in the luxury residential and hospitality construction sectors.

IndIA BUdGet 2012-13