india rpmo aug 2014
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Residential Property Market Overview August 2014
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RESEARCH & FORECAST REPORTSYDNEY CENTRAL BUSINESS DISTRICT
2 Research & Forecast Report | August 2014 | Residential | Colliers International
www.colliers.com
ECONOMIC BAROMETER
Jun-13 Jun-14
Repo rate 7.25% 8.00%
Reverse Repo rate 6.25% 7.00%
CRR 4.00% 4.00%
Inflation 5.16% 5.43%
Home loan rate 9.95% 10.10%
RETURN ON ALTERNATIVE INVESTMENTS
Jun-13 Jun-14 YoY %
Change
Gold 25,778 28,092 8.98%
Silver 40,408 44,332 9.71%
Fixed Deposit 8.75% 9.00% 2.86%
Equity 19,396 25,414 31.03%
Realty Index 1,511 2,077 37.47%
Repo Rate C as h Res erve Rat io Wh ole sal e Pri ce Ind ex
ECONOMIC INDICATORS
I n P e r c e n t a g e
Macro Economic Overview
•
During second quarter the Central Govt. announced friendly measures in the 2014-15budget for real estate sector. With the general improvement in overall sentiment andoptimistic announcements for real estate BSE Sensex and the realty index showedupward trends.
• In a positive move, the RBI (Reserve Bank of India) allowed banks to issue long-termbonds with a minimum maturity of seven years to raise funds for lending to long terminfrastructure and affordable housing projects. Home loans up to INR50 lakhs (INR5million) for houses costing up to INR65 lakhs (INR6.5 million) located in the sixmetropolitan centres and INR40 lakhs (INR4 million) for houses costing INR50 lakhs(INR5 million) in other cities are eligible for home loan under this scheme.
• An increase in transaction volumes was witnessed in cities such as Bangalore, Chennai
and Pune and a number of projects were launched. In cities such NCR, Mumbai andKolkata, there was an increase in enquiries for residential properties but transaction volumes remained stable and developers continued to promote their unsold stock byoffering innovative payment plans.
•COLLIERS VIEW: We anticipate a stable price scenario in cities such as Mumbai andNCR due to the high price points. However, Bangalore, Chennai, Pune, and Kolkata maysee marginal appreciation due to increased demand. Most of these cities may witnessthe launch of affordable projects in the coming quarter as a number of developers areplanning to launch affordable housing projects in line with the Govt. agenda focusingon this type of housing.
4.0
3.0
6.0
5.0
8.0
9.0
7.0
11.0
10.0
12.0
M a r ‘ 0 9
J a n ‘ 0 9
N o v ‘ 0 9
M a r ‘ 1 1
M a r ‘ 1 2
M a y ‘ 1 3
J u l ‘ 1 3
S e p ‘ 1 3
M a r ‘ 1 4
J a n ‘ 1 4
J u l ‘ 1 4
M a y ‘ 1 4
N o v ‘ 1 3
M a r ‘ 1 3
J a n ‘ 1 1
M a y ‘ 0 9
M a y ‘ 1 0
M a r ‘ 1 0
J a n ‘ 1 0
M a y ‘ 1 1
M a y ‘ 1 2
M a y ’ 0 8
M a r ’ 0 8
J a n ‘ 0 8
J u l ‘ 0 9
J u l ‘ 1 0
J u l ‘ 1 1
J u l ’ 1 2
N o v ’ 0 8
S e p ’ 0 8
J u l ‘ 0 8
S e p ‘ 0 9
N o v ‘ 1 0
S e p ‘ 1 0
S e p ‘ 1 1
S e p ‘ 1 2
J a n ‘ 1 2
J a n ‘ 1 3
N o v ‘ 1 1
N o v ‘ 1 2
2.0
1.0
0.0
-1.0
-2.0
Source: Government of India, Colliers International India Research
Research & Forecast ReportIndia I Residential | August 2014
1 SBI Home loan rate for loan upto INR 30 Lakhs2 SBI Fixed deposit rate for a period of more than one yearand amount below INR 1 Crore
3 Realty Index is a free float weighted index, comprised ofreal estate development companies in the BSE-500 Index.
2
3
1
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3
2Q 2014 3Q 2014FCapital Value
Rental Value
New Project
Construction Pace
MUMBAI
SELECT NEW PROJECTS
PROJECT NAME LOCATION DEVELOPER NAME TENTATIVE
POSSESSION*
RATE (PER SQ.FT.)**
Anmol Fortune Goregaon (W) The Wadhwa Group 3Q 2017 14,000
Joy Callista Andheri (E) Joy and Sayla Realtors 2Q 2017 21,000
Kanakia Seven Andheri (E) Kanakia Spaces 4Q 2016 11,500
Kanakia Rainforest Andheri (E) Kanakia Spaces 4Q 2017 11,500
Nirmal Centre Court Mulund (W) Nirmal Lifestyle 4Q 2018 10,500
Raj Torres Thane (W) Rajesh Life Spaces 4Q 2017 8,250
•Te Mumbai residential marketremained steady in second quarter,
with lower transaction volume in thesecondary market.
•Prices in the secondary market remainedstable across the micro markets, barring
a few micro markets such as SouthMumbai and the western suburbs, whereQoQ increases in the range of 1-9% wererecorded. Powai and Andheri recordedQoQ decreases in the range of 3-5%.
• In the primary market, few mid-rangedprojects were launched in central and
western suburbs by developers suchas Kanakia Spaces, Rajesh Life Spaces,
Wadhwa Group, Joy & Sayla Realtorsand Nirnal Lifestyle. Tese projects werepriced in the range of INR 8,500 - 21,000
per sq. ft.
• A very few projects were completed thisquarter, including Signia Oceans bySunteck Realty at Airoli.
•Subdued demand for premiumproperties placed pressure on landlords,and South Mumbai witnessed an average5% QoQ decrease in rental values.
•COLLIERS VIEW: While absorptionin the luxury segment is expected to
remain under pressure due to high pricepoints, the pre-launches in the mid-and low-end segments will continue tohave traction at the introductory prices.Overall capital values in the primary andsecondary sales markets are expected toremain stable in the short- to medium-term.
0
10,000
20,000
30,000
40,000
60,000
70,000
50,000
80,000
I N R p e r s q . f t .
I N R p e r s q . f t . p e r m
o n t h
1 Q 2 0 0 8
3 Q 2 0 0 8
3 Q 2 0 0 9
1 Q 2 0 0 9
1 Q 2 0 1 0
3 Q 2 0 1 0
1 Q 2 0 1 2
3 Q 2 0 1 2
1 Q 2 0 1 3
3 Q 2 0 1 3
3 Q 2 0 1 4 F
1 Q 2 0 1 5 F
1 Q 2 0 1 4 F
1 Q 2 0 1 1
3 Q 2 0 1 1
80,000
40,000
50,000
70,000
60,000
10,000
20,000
30,000
0
Mumbai
P r a b h a d e v i
Colaba,Cuffe Parade
S o u t h M u m b a i
Malabar Hill, AltamountRoad, Carmichael Road
Worli
W o r l i
Breach Candy,NapeanseaRoad, Peddar Road
Prabhadevi
B a n d r a
Bandra
S a n t a c r u z
Santacruz
A n d h e r i
Andheri
P o w a i
Powai
K h a r
Khar
J u h u
Juhu
200
150
100
50
0
Malabar Hill,Altamount Road,Carmichael Road
Colaba,Cuffe ParadeBandra
Juhu
Khar
Prabhadevi
Breach Candy,Napeansea Road,Peddar Road
Andheri
Worli
Santacruz
I N R P e r s q . f t .
Note: Above values represents indicative asking price forpremium properties
Note: * As mentioned by developer ** Base selling price as quoted by developer
AVERAGE CAPITAL VALUE RANGE
AVERAGE RENTAL VALUE
AVERAGE CAPITAL VALUE TRENDS
CITY RESIDENTIAL BAROMETER
Note: Ongoing Price: Indicative asking price in the primarymarket.
Micro MarketOngoing Price
(P.S.F)
Thane - Kalyan 4,000 - 8,000
Navi Mumbai 3,500 - 7,500
Virar - Boisar 3,000 - 5,500
INVESTMENT OPPORTUNITIES
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4 Research & Forecast Report | August 2014 | Residential | Colliers International
2Q 2014 3Q 2014FCapital Value
Rental Value
New Project
Construction Pace
DELHI
SELECT ONGOING PROJECTS
PROJECT NAME LOCATION DEVELOPER
NAME
TENTATIVE
POSSESSION*
RATE (PER
SQ.FT.)**
Capital Greens Phase V Shivaji Marg DLF Ltd. 4Q 2015 18,000
Castlewood Okhla Indiabulls Ltd. 4Q 2015 12,800
Kings Court Greater Kailash- II DLF Ltd. 4Q 2015 40,000
Queens Court Greater Kailash- II DLF Ltd. 4Q 2015 36,000
Signature Villas Connaught Place Tata Housing Ltd. 4Q 2017 120,000 - 150,000
Winter Hills Dwaraka Morh Umang Realtech 4Q 2014 10,250
•Te Delhi prime residential marketremained almost stable during 2Q 2014.
An increase in enquires was witnessedtowards the end of the quarter; however,this has not resulted in increase intransaction volume.
•Due to the ongoing monsoon,construction activities remained dull,and the city has not witnessed much newsupply in this quarter.
•Capital values remained stable duringthe quarter; however, an increase in rentsin the range of 3-10% was witnessed inmicro markets including Panchashila,
Anandlok, Niti Bagh, SDA, FriendsColony, Maharani Bagh, Greater KailashI & II and the South Extension.
•
In a major transaction, the RuiaPromoters of ESSAR Group sold theirbungalow located in Jor Bagh for aboutINR 1 billion to an individual buyer whohappened to be a Supreme Court lawyer,Mr. Rohit andon. Te bungalow features12,000 sq ft of built-up space and is builton a 1,045 sq m plot.
• In the primary market, the DelhiDevelopment Authority is likely toannounce its 2014 housing scheme,
with approximately 27,000 flats on offer
in August 2014. Tis will improve theresidential supply in the affordablesegment of the city.
•COLLIERS VIEW: With overall economicuncertainties clearing, the secondarymarket is likely to improve in the comingquarters. Capital values are expected toremain stable in the near-term however,rental value may witness marginalappreciation in select micro-marketsdue to high demand and limited supply.
0
15,000
30,000
45,000
60,000
90,000
105,000
75,000
120,000
I N R p e r s q . f t .
I N R p e r s q . f t . p e
r m o n t h
1 Q 2 0 0 8
3 Q 2 0 0 8
3 Q 2 0 0 9
1 Q 2 0 0 9
1 Q 2 0 1 0
3 Q 2 0 1 0
1 Q 2 0 1 2
3 Q 2 0 1 2
1 Q 2 0 1 3
3 Q 2 0 1 3
3 Q 2 0 1 4 F
1 Q 2 0 1 5 F
1 Q 2 0 1 4 F
1 Q 2 0 1 1
3 Q 2 0 1 1
1,00,000
90,000
80,000
40,000
50,000
70,000
60,000
10,000
20,000
30,000
0
Delhi
200
160
120
80
40
0
I N R P e r s q . f t .
Note: Above values represents indicative asking price forpremium properties
Note: * As mentioned by developer ** Base selling price as quoted by developer
AVERAGE CAPITAL VALUE RANGE
AVERAGE RENTAL VALUE
AVERAGE CAPITAL VALUE TRENDS
CITY RESIDENTIAL BAROMETER
A n a n d N i k e t a n ,
V a s a n t V i h a r
P a n c h a s h i l a , A n a n d -
l o k , N i t i B a g h , S D A
F r i e n d s C o l o n y ,
M a h a r a n i B a g h
S h a n t i N i k e t a n ,
W e s t e n d
G r e a t e r K a i l a s h I &
I I , S o u t h E x t e n s i o n
G o l f L i n k s , J o r B a g h ,
S u n d e r N a g a r
C h a n a k y a P u r i
P r i t h v i r a j R o a d ,
A u r a n g z e b R o a d
Anand Niketan,Vasant Vihar
Panchashila, Anandlok,Niti Bagh, SDA
Friends Colony,Maharani Bagh
Shanti Niketan,Westend
GreaterKailash I
& II, SouthExtension
Golf Links,Jor Bagh,Sunder Nagar
Chanakya Puri
Prithviraj Road,Aurangzeb Road
Prithviraj Road,Aurangzeb Road
Golf Links, Jor Bagh,Sundar NagarShanti Niketan, Westend
Chanakya Puri Friends Colony,Maharani BaghGreater Kailash I & II,South Extension
Panchashila, Anandlok,Niti Bagh, SDA
Anand Niketan,Vasant Vihar
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5
SELECT NEW PROJECTS
PROJECT NAME LOCATION DEVELOPER
NAME
TENTATIVE
POSSESSION*
RATE (PER
SQ.FT.)**
Ambience High End Luxury Sector 22 Ambience Pvt. Ltd. 2Q 2018 9,500
ATS Triumph Sector 104 ATS Infra 4Q 2017 8,500
Greenopolis Phase 2 Sector 93 Spaze Group 1Q 2018 5,950
Michael Schumacher World Tower Sector 109 Homestead Devel-opers Ltd. 4Q 2017 8,350
One Key Resiments Sector 67 M3M Urbana 4Q 2017 9,250
Supertech Hues Sector 68 Supertech Ltd. 1Q 2018 6,800
•Te Gurgaon residential marketremained stagnant for the fourthconsecutive quarter. Tere was anincrease in enquiries from buyers thisquarter after the elections. However, thishas not resulted in increased transaction
volume due to higher price points.
• In the primary market, many developerslaunched their premium projectsin hopes of a revival of the marketconditions after the new governmenttook charge. However, downwardpressure on the primary marketcontinues and developers with schemeslike “buyback” remained unable to lurecustomers.
•Overall construction activities remainedslow in 2Q 2014 due to the monsoon
season. Projects / parts of projectscompleted this quarter include Avenue71 by CHD Developers at Sector 71 andEden Heights by GPL Promoters at Sector70. Both of these projects were priced atan average of INR5,800 per sq ft.
•Te Public Works Department (PWD),the National Highway Authorityof India (NHAI) and the GurgaonDistrict Administration has given thepermission to construct an eight-laneflyover on Hero Honda Chowk. Tis
will significantly decrease the commutetime to the developing sector in the newGurgaon area.
•COLLIERS VIEW: In view of the politicalstability, the residential market is likelyto gain momentum in the comingquarters. However, capital and rental
values are likely to remain stable inalmost all micro-markets due to amplestock availability in both primary andsecondary markets.
2Q 2014 3Q 2014FCapital Value
Rental Value
New Project
Construction Pace
GURGAON
0
5,000
10,000
15,000
20,000
30,000
35,000
40,000
25,000
45,000
I N R p e r s q . f t .
I N R p e r s q . f t . p e r m o n t h
3 Q 2 0 0 8
3 Q 2 0 0 9
1 Q 2 0 0 9
1 Q 2 0 1 0
3 Q 2 0 1 0
1 Q 2 0 1 2
3 Q 2 0 1 2
1 Q 2 0 1 3
3 Q 2 0 1 3
3 Q 2 0 1 4 F
1 Q 2 0 1 4 F
1 Q 2 0 1 1
3 Q 2 0 1 1
18,000
8,000
10,000
16,000
14,000
12,000
2,000
4,000
6,000
0
Gurgaon
N H - 8
Sohna Road
& Ext
G o l f C o u r s e R o a d
DLF Phase I
S o h n a R o a d & E x t
D L F P h a s e I
NH - 8
Golf Course Road
S u s h a n t L o k
Sushant Lok
80
60
40
20
0
I N R P e r s q . f t .
Note: Above values represents indicative asking price forpremium properties
Note: * As mentioned by developer ** Base selling price as quoted by developer
AVERAGE CAPITAL VALUE RANGE
AVERAGE RENTAL VALUE
AVERAGE CAPITAL VALUE TRENDS
CITY RESIDENTIAL BAROMETER
Note: Ongoing Price: Indicative asking price in the primarymarket.
Micro MarketOngoing Price
(P.S.F)
Golf Course Road
Extension
7,500 - 9,000
Sohna Extension 4,000 - 5,000
Pataudi Road 4,500 - 5,500
New Gurgaon 4,000 - 5,000
INVESTMENT OPPORTUNITIES
DLF Phase I
NH-8
Golf Course Road
Sushant Lok
Sohna Road& Ext
1 Q 2 0 1 5 F
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•Caution continues to be the dominatingfactor affecting both investors and end-users demand in the NOIDA residentialmarket. A number of projects ready forpossession in various sectors along theNOIDA expressway are stalled and havenot been given occupation certificates.
•Te National Green ribunal (NG) hascome up with an interim decision thatall building construction within a 10-km radius of the Okhla bird sanctuary,or within a certain distance of the eco-sensitive zone, as may be prescribed bya notification from the MoEF (Ministryof Environment and Forests), shall besubject to the decision of the NationalBoard of Wild Life (NBWL), anduntil clearance from NBWL has beenobtained, the authority concerned maynot issue buildings with completioncertificates.
•Following the previous quarter trends,both capital values in the primarymarket remained stable across all micro-markets. However, developers wereoffering various incentives such as cashdiscounts and other giveaways in orderto attract customers and reduce theirunsold stock.
•Rental values are depreciated in therange of 2-5% QoQ across the sectors
due to upcoming new supply in newdeveloping sectors.
•COLLIERS VIEW: Currently, bothinvestors and end-users are delayingtheir buying decisions due to theongoing NG issue. However, the NGrecently sent a proposal to the ministryto declare the area within a 1.2 km radiusof the bird sanctuary an eco-sensitivezone. If accepted, large new supply willcome on the market and will keep rental
values under pressure. In the meantime,
capital values have remained stable dueto consistent end-user demand.
2Q 2014 3Q 2014FCapital Value
Rental Value
New Project
Construction Pace
NOIDA
SELECT NEW PROJECTS
PROJECT NAME LOCATION DEVELOPER
NAME
TENTATIVE
POSSESSION*
RATE (PER
SQ.FT.)**
Ambience Tiverton Sector 50 Ambience Group 4Q 2017 9,000
Eldeco Edge Sector 119 Eldeco Group 4Q 2017 4,520
Sports City Sector 79 Exotica Housing 2Q 2018 4,400
Lotus Greens Yamuna Expressway 3C Ltd 4Q 2018 2,700
Lotus Square Residences Sector 98 Lotus Greens 4Q 2018 7,500
The Urban Walk Sector 121 Techzona Group 4Q 2017 5,000
0
1,500
3,000
4,500
6,000
9,000
10,500
7,500
12,000
I N R p e r s q . f t .
I N R p e r s q . f t . p e r
m o n t h
3 Q 2 0 0 9
1 Q 2 0 1 0
3 Q 2 0 1 0
1 Q 2 0 1 2
3 Q 2 0 1 2
1 Q 2 0 1 3
3 Q 2 0 1 3
3 Q 2 0 1 4 F
1 Q 2 0 1 5 F
1 Q 2 0 1 4 F
1 Q 2 0 1 1
3 Q 2 0 1 1
12,000
6,000
7,500
10,500
9,000
1,500
3,000
4,500
0
NOIDA
Sector 50
Sector 44
Sector 61,62,63
Sector28,29,30
Sector 92/93
40
30
20
10
0
I N R P e r s q . f t .
Note: Above values represents indicative asking price forpremium properties
Note: * As mentioned by developer ** Base selling price as quoted by developer
AVERAGE CAPITAL VALUE RANGE
AVERAGE RENTAL VALUE
AVERAGE CAPITAL VALUE TRENDS
CITY RESIDENTIAL BAROMETER
Note: Ongoing Price: Indicative asking price in the primarymarket.
Micro MarketOngoing Price
(P.S.F)
NOIDA Expressway 4,000 - 7,000
Sectors 71 to 83 4,500 - 5,500
INVESTMENT OPPORTUNITIES
S e c t o r 2 8 , 2 9 , 3 0
S e c t o r 9 2 / 9 3
S e c t o r 6 1 , 6 2 . , 6 3
S e c t o r 5 0
S e c t o r 4 4
Sector 61,62,63
Sector 92 / 93
Sector 28,29,30
Sector 50Sector 44
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2Q 2014 3Q 2014FCapital Value
Rental Value
New Project
Construction Pace
CHENNAI
0
4,000
16,000
12,000
8,000
20,000
28,000
24,000
40,000
36,000
32,000
I N R p e r s q . f t .
I N R p e r s q . f t . p e r m o n t h
1 Q 2 0 0 8
3 Q 2 0 0 8
3 Q 2 0 0 9
1 Q 2 0 0 9
1 Q 2 0 1 0
3 Q 2 0 1 0
1 Q 2 0 1 2
3 Q 2 0 1 2
1 Q 2 0 1 3
3 Q 2 0 1 3
3 Q 2 0 1 4 F
1 Q 2 0 1 5 F
1 Q 2 0 1 4 F
1 Q 2 0 1 1
3 Q 2 0 1 1
35,000
15,000
20,000
30,000
25,000
0
5,000
10,000
Chennai
Anna Nagar
Boat Club
Adyar
Nungambakkam
Beasant Nagar
T Nagar
Sholinganallur
Siruseri/ Kazipattur
Alwarpet /R A Puram
Velachery
90
75
60
45
30
15
0
I N R P e r s q . f t .
Note: Above values represents indicative asking price forpremium properties
Note: * As mentioned by developer ** Base selling price as quoted by developer
AVERAGE CAPITAL VALUE RANGE
AVERAGE RENTAL VALUE
AVERAGE CAPITAL VALUE TRENDS
CITY RESIDENTIAL BAROMETER
Note: Ongoing Price: Indicative asking price in the primarymarket.
Micro MarketOngoing Price
(P.S.F)
Velachery 5,000 - 7,000
Sholinganallur 3,500 - 4,200
Siruseri/ Kazipattur 3,000 - 4,000
Kelambakkam 3,000 - 4,000
INVESTMENT OPPORTUNITIES
SELECT NEW PROJECTS
PROJECT NAME LOCATION DEVELOPER
NAME
TENTATIVE
POSSESSION*
RATE (PER
SQ.FT.)**
Bollineni Hillside Phase II Sholinganallur Bollineni Hillside 2Q 2017 4,000
Fairmount Guindy VGN Developers 2Q 2017 6,500
Lilac Heights R A Puram ETA Star 4Q 2016 22,000
Masken Heights Velachery Greata Enterprises 2Q 2016 8,500
Opaline sequel Navalur Olymbia Group 4Q 2016 4,400
Tango Thoraipakkam Akshaya Homes 4Q 2016 8,500
A d y a r
A n n a N a g a r
N u n g a m b a k k a m
A l w a r p e t /
R A P u r a m
V e l a c h e r y
S h o l i n g a n a l l u r
S i r u s e r i / K a z i p a t t u r
T N a g a r
B e a s a n t N a g a r
B o a t C l u b
Boat Club
Siruseri/ Kazipattur
Velachery
Sholinganallur
Anna Nagar
T Nagar
AdyarBeasant Nagar
Nugambakkam
Alwarpet /R A Puram
• In 2Q 2014, a number of new projects,both in the premium and mid-rangecategories, were launched in micro-markets such as R. A. Puram, Velacheryand Toraipakkam witness launch ofpremium projects in the price rangeof INR8,500 - 22,000 per sq ft, while
micro-markets like Guindy, Navalur andSholinganallur witnessed mid-rangeprojects launched in the price bracket ofINR4,000 - 6,500 per sq ft.
•Similarly, a number of premium projects/ parts of projects were completed thisquarter, including “Isha Maanikam”by Isha Homes Pvt Ltd at Alwarpet,“Bhoomi Crimson Square” by Bhoomi&Buildings at Mylapore, “Mandarina” by
Appaswamy real estates at Kotturpuram,all priced in the range of INR 15,500 –
20,000 per sq. ft.
•Capital values increased in the rangeof 1 - 8% QoQ in almost all micro-markets, barring Adyar where capital
values decline by 1% QoQ, and Nagar, Velachery, Siruseri and Kazipattur, where capital values remained stable.
•Rental rates remained stable due to hugeavailable supply.
•Tis quarter, GMR Infrastructure
announced completion of 29.65 kmOuter Ring Road (ORR) Phase 1.Tis road will extend from Vandalurto Nemilichery and ease the trafficcongestion along the western periphery.
•COLLIERS VIEW: Looking forward, weexpect a further increase in demand fromboth investors and end users. Capital andrental values for premium properties willcontinue to remain stable; however mid-range properties will see a rise in capital
values by 2 - 5% in the near term due tohigh demand.
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8 Research & Forecast Report | August 2014 | Residential | Colliers International
•Strong demand for mid-range properties was witnessed during 2Q 2014, mainlyin micro-markets like Whitefield,Tanisandra Road, Kanakpura Road andHosur Road.
• Various projects / parts of projects
witnessed completion this quarterincluding “Legacy Caldera” by LegacyGroup at Cunninghum Road, priced atINR 15,000 per sq. ft.; “Nitesh CentralPark” by Nitesh Estate at Bagalur Road,“Legacy Estilo” by Legacy Group at
Yalahanka-Doddaballapur Road, “PurvaSky wood” by Puravankara Projectsand “PrishaBhuvana Greens” by PrishaProperties both at Harlur Road. Teseprojects priced in the range of INR 4,500to 5,200 per sq. ft.
•
A number of national and localdevelopers launched new projects inmid-range focusing on supplying moremedium density or township stylehousing, in an attempt to provide a moreaffordable product.
•Backed-up by the strong demand, capital values increased in the range of 2 - 12%QoQ. Similarly, rents increased in therange of 1 - 5% QoQ due to continuousdemand from I/IeS employees.
•
Te state government has cleared theexecution of Phase 2 of the NammaMetro which will connect Byappanahallito IPL-Whitefield and Mysore Roadterminal to Kengeri.
•COLLIERS VIEW: It is anticipated thatdemand in the Bangalore residentialmarket will continue to remain firmin the coming quarters due to apositive economic outlook and robustcommercial market performance. Bothcapital and rental vales are expected
to increase in the range of 2 - 4% QoQacross all micro-markets.
2Q 2014 3Q 2014FCapital Value
Rental Value
New Project
Construction Pace
BENGALURU
SELECT NEW PROJECTS
PROJECT NAME LOCATION DEVELOPER
NAME
TENTATIVE
POSSESSION*
RATE (PER
SQ.FT.)**
Assetz Marq Whitefield Assetz Homes 4Q 2018 4,200
Godrej United Whitefield Godrej Properties 4Q 2017 5,400
Nitesh Melbourne Park Hennur Road Nitesh Group 4Q 2017 4,750
Prestige Falcon City Kanakpura Road Prestige Group 4Q 2018 5,499
Pride Enchanta Mysore Road Pride Group 4Q 2016 5,450
Pride Wilasa Kanakpura Road Pride Group 4Q 2016 6,750
0
4,000
8,000
12,000
16,000
24,000
28,000
20,000
32,000
I N R p e r s q . f t .
I N R p e r s q . f t . p e
r m o n t h
1 Q 2 0 0 8
3 Q 2 0 0 8
3 Q 2 0 0 9
1 Q 2 0 0 9
1 Q 2 0 1 0
3 Q 2 0 1 0
1 Q 2 0 1 2
3 Q 2 0 1 2
1 Q 2 0 1 3
3 Q 2 0 1 3
3 Q 2 0 1 4 F
1 Q 2 0 1 5 F
1 Q 2 0 1 4 F
1 Q 2 0 1 1
3 Q 2 0 1 1
30,000
25,000
20,000
15,000
5,000
10,000
0
Bengaluru
Jayanagar
Central
PalaceOrchard
Cooke Town
Airport Road
Indiranagar
Koramangala
Whitefield
Yelahanka
Bannerghatta Road
80
60
40
20
0
I N R P e r s q . f t .
Note: Above values represents indicative asking price forpremium properties
Note: * As mentioned by developer ** Base selling price as quoted by developer
AVERAGE CAPITAL VALUE RANGE
AVERAGE RENTAL VALUE
AVERAGE CAPITAL VALUE TRENDS
CITY RESIDENTIAL BAROMETER
Note: Ongoing Price: Indicative asking price in the primarymarket.
Micro MarketOngoing Price
(P.S.F)
Airport Road 5,000 - 7,000
Bannerghatta Road 4,200 - 6,000
Whitefield 4,400 - 6,000
Yelahanka 3,500 - 5,000
INVESTMENT OPPORTUNITIES
Y e l a h a n k a
B a n n e r g h a t t a R o a d
A i r p o r t R o a d
W h i t e fi e l d
J a y a n a g a r
C o o k e T o w n
K o r a m a n g a l a
I n d i r a n a g a r
P a l a c e O r c h a r d
C e n t r a l
Central
Yelahanka
Koramangala
Indiranagar
Jayanagar
Bannerghatta Road
Palace Orchard
Cooke Town
Airport Road
Whitefield
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9
2Q 2014 3Q 2014FCapital Value
Rental Value
New Project
Construction Pace
KOLKATA
0
2,000
4,000
8,000
6,000
12,000
14,000
20,000
18,000
16,000
10,000
22,000
24,000
I N R p e r s q . f t .
I N R p e r s q . f t . p e
r m o n t h
1 Q 2 0 0 8
3 Q 2 0 0 8
3 Q 2 0 0 9
1 Q 2 0 0 9
1 Q 2 0 1 0
3 Q 2 0 1 0
1 Q 2 0 1 2
3 Q 2 0 1 2
1 Q 2 0 1 3
3 Q 2 0 1 3
3 Q 2 0 1 4 F
1 Q 2 0 1 5 F
1 Q 2 0 1 4 F
1 Q 2 0 1 1
3 Q 2 0 1 1
8,000
10,000
18,000
20,000
16,000
12,000
14,000
2,000
4,000
6,000
0
Kolkata
50
40
30
20
10
0
I N R P e r s q . f t .
Note: Above values represents indicative asking price forpremium properties
Note: * As mentioned by developer ** Base selling price as quoted by developer
AVERAGE CAPITAL VALUE RANGE
AVERAGE RENTAL VALUE
AVERAGE CAPITAL VALUE TRENDS
CITY RESIDENTIAL BAROMETER
Note: Ongoing Price: Indicative asking price in the primarymarket.
Micro MarketOngoing Price
(P.S.F)
Tollygunge 3,600 - 4,800
Behela 2,900 - 3,700
Salt Lake 4,000 - 6,000
EM Bypass 4,000 - 7,000
New Town-Rajarhat 3,200 - 4,600
INVESTMENT OPPORTUNITIES
SELECT NEW PROJECTS
PROJECT NAME LOCATION DEVELOPER
NAME
TENTATIVE
POSSESSION*
RATE (PER
SQ.FT.)**
Avishi Trident BT Road Trident Group 4Q 2018 6,100
Bhawani Allen Enclave Keshtopur Bhawani Group 4Q 2017 4,050
Malati Apartment New Town Malati Construction 4Q 2017 3,600
Ozone Garia PS & Srijan Group 4Q 2018 5,500
Rajarhat Junction Rajarhat Realtech Nirman 4Q 2018 4,500
Shivaham Paradise Haldiram Shivaham Builders 4Q 2018 4,500
•During 2Q 2014, Kolkata market witnessed a moderate increase indemand was primarily in the mid-rangeand affordable segments in Dum DumCant, Rajarhat, Barasat and New own.Te majority of this demand was fromend-users.
• In the same quarter, the city residentialmarket saw many new launches,especially in micro-markets like Garia,Rajarhat, New own, B Road andKeshtopur. Most of these projects weremid-range projects priced in the rangeof INR3,300 to 5,500 per sq ft.
•Few projects / parts of projects werecompleted this quarter includingGreenfield City Phase 2 by Greenfield atBehala; Sidhha own (owers 6 & 7) by
Sidhha Group at Rajarhat; and SamarKunj by Infrastructure India Pvt Ltd atBarasat. All of these projects are pricedin the range of INR2,300 to 3,500 per sqft.
• In 2Q 2014, both capital and rental valuesrose in the range of 2 - 8 % QoQ in almostall micro-markets, except Bhawanipur,ollygunge, Salt Lake and New own –Rajarhat where both capital and rental
values remained stable.
•
COLLIERS VIEW: Going forward, weexpect a moderate increase in capitaland rental values in the near term inthe mid-range and affordable housingsegments due to high demand in thesesegments. However, premium propertiesare expected to remain stable in theshort term.
A l i p o r e
B a l l y g u n g e
B h a w a n i p u r
E M B y p a s s
P A S h a h R o a d
L o u d o n S t r e e t
N e w
T o w n - R a j a r h a t
S a l t L a k e
T o l l y g u n g e
V I P R o a d
B e h e l a
Bhawanipur
PA Shah Road
Tollygunge
Loudon Street
Behela
AliporeEM Bypass
Ballygunge
Salt Lake
VIP Road
New Town Rajarhat
Bhawanipur
EM Bypass
Ballygunge
Behela
Tollygunge
P A Shah Road
New Town -Rajarhat
Loudon street
Alipore
VIP Road
Salt Lake
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11
Mumbai
Te 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.
Delhi
Te prime residential areas in Delhi are in the South region and
comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan
and Central Delhi locations. Tese areas enjoy proximity to
embassies, the airport and central commercial areas - Connaught
Place.
Gurgaon
Te prime residential locations of Gurgaon include Golf Course
Road, DLF Phase I, Sushant Lok, NH-8 and Sohna Road. DwarkaExpressway, Sohna Region, Pataudi Road and Southern Peripheral
Road (SPR) are also emerging as a preferred residential location
owing to its proximity to the national capital.
NOIDA
NOIDA premium residential market is comprised of sectors
44, 50, 92, 61, 62, 63 , 28, 29, 30 and NOIDA - Greater NOIDA
Expressway. Most of the new projects launches are concentrated
in new sectors such as Sector 70 - 78 and sectors along NOIDA -
Greater NOIDA Expressway.
Chennai
Te prime residential areas in Chennai include Boat Club,
R.A.Puram, MRC Nagar, Tiruvanmiyur, Valmiki Nagar and
Besant Nagar, R.A Puram, Mylapore and Adyar in South Chennai,
Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, .
Nagar in Central Chennai; and Anna Nagar, Kilpauk in North
West Chennai.
Bengaluru (Bangalore)
Te 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.
Kolkata
Te prime residential areas in Kolkata include PA Shah Road,
ollygunge 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
Te 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
CIY BAROMEERS
Increasing as compared to previous quarter
Decreasing as compared to previous quarter
Remained stable from previous quarter
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12 R h & F R | A 2014 | R id i l | C lli I i l
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Research
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