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Residential Snapshot Q1 2017Ahmedabad

MARKETBEAT

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EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0%

during the October-December quarter of 2016, dropping 0.4

percentage points from the previous quarter’s 7.4%. The healthy

growth rate however, came in a quarter that was marked by

demonetization of the Rupee, which squeezed liquidity among

households. In February, the Consumer Price Index (CPI), a key

price indicator of the Reserve Bank of India (RBI) for policy

purposes, was seen at 3.6%, treading well below the

government’s target of 4% till 2021. While the RBI has not cut the

repo rate for the past five months, banks have reduced their term-

deposit rates post demonetization as they were flush with funds.

Further, several banks have also reduced their home loan rates

by up to 90 basis points, providing some cheer to homebuyers.

Following the cut in home loan rates, some rationalization in

prices of housing units and the enforcement of the Real Estate

(Regulation and Development) Act (RERA) in May, a pick-up in

residential sector is anticipated towards the latter half of 2017.

Market OverviewDismal launch activities. Ahmedabad recorded around 1,800

new units launched during the first quarter of 2017, a 33% decline

quarter-on-quarter (QoQ). Further, the average number of units

launched per project decreased from 343 in the previous quarter

to 116 in the current quarter, indicating a trend of launching

smaller-sized projects.

The West Peripheral submarket contributed majority (57%) of the

quarterly unit launches, led by heightened activity in Bopal. Well-

developed physical and social infrastructure in this submarket has

been fuelling the high demand and supply.

Mid-segment dominated. The mid-segment made up almost

90% of the overall unit launches, 35% of which was located in

Bopal. The share of unit launches in the affordable segment

declined to 6% from 17% in the previous quarter.

Capital and rental values remained stable. Both quoted capital

and rental values maintained their status-quo across all

submarkets as demand remained passive post demonetization.

However, buyers are getting reasonable discounts while closing

transactions.

OutlookLimited launch activities. Given the existing high levels of

unsold inventory, the number of unit launches is likely to be

restrained in the upcoming quarter. In addition, developers are

adopting a wait-and-see strategy as they want to understand the

implications of the roll out of the Goods & Services Tax (GST) on

costs and prices and also the impending implementation of RERA.

<CITY> OFFICERENTAL VALUES AS OF Q1 2017

High-End Segment

Submarket Average Quoted

Rent (INR/Mth)

% Change From Short Term

Outlook3 Mth Ago 1 Yr Ago

Central 20,000-100,000 0% 0%

West 18,000-100,000 0% 0%

Mid Segment

Central 7,000-25,000 0% 0%

North 5,000-12,000 0% 0%

South 4,500-15,000 0% 0%

West 8,000-30,000 0% 0%

West Peripheral 8,000-30,000 0% 0%

East 4,000-12,000 0% 0%

CAPITAL VALUES AS OF Q1 2017

High-End Segment


Rate (INR/sf)



Central 5,500-8,000 0% 0%

West 5,500-8,000 0% 0%

Mid Segment

Central 4,500-6,500 0% 6%

North 2,700-4,500 0% 3%

South 1,900-5,000 0% -2%

West 3,500-6,500 0% -2%

West Peripheral 2,800-5,500 0% 0%

East 1,800-4,000 0% 0%

Increase DecreaseStable

Residential Snapshot Q1 2017Ahmedabad

MARKETBEAT


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Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered

to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.

Siddhart GoelSenior Director

Research Services, India

Tel: +91 80 40465555

[email protected]

STATS ON THE GO

Significant Projects Launched in Q1 2017

Building Location Developer Units Launched Rate* (INR/SF)

Aavishkar Bopal Aaryan Builders 350 2,650

Swagat Pelican Sargasan Swagat Group 276 3,111

Significant Projects Under Construction in Q1 2017

Building Location Developer Est. Number Of Units Expected Completion

Godrej Garden City Ranip Godrej Properties 920 Q2 2017

Iscon Platinum Bopal JP Iscon Group 600 Q4 2017

Significant Construction Completions in Q1 2017

Building Location Developer Est. Number Of Units Unit Size (SF)

Krupal Heritage Prahladnagar Narayankrupa Infra 119 1,308 - 1,841

NOTES

Data collated from primary and secondary resources. Estimations are subject to change

* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges,

etc.

The above values for high-end segment are for units typically of 1,600-3,000 sf

The above values for mid segment are for units typically of 900-1,800 sf

KEY TO SUBMARKETS

High-end Segment

Central: C.G. Road, Ashram Road, Navrangpura, Gulbai Tekda

West: Vastrapur, Satellite, Thaltej, Prahladnagar

Mid Segment

Central: C.G. Road, Ashram Road, Navrangpura, Gulbai Tekda

North: Ram Nagar, Sabarmati, Motera, Chandlodia, Ranip, Chandkheda, Gota, Vaishnodevi

South: Maninagar, Narol, Vatwa, Ghodasar

West: Vastrapur, Satellite, Thaltej, Prahladnagar, Makarba, Vejalpur

West Peripheral: Bopal, South Bopal, Ambli, Ghuma

East: Naroda, Nikol, Hansol, Odhav, Vastral

Residential Snapshot Q1 2017BENGALURU, INDIA

MARKETBEAT









purposes, was seen at 3.6%, treading well below the government’s

target of 4% till 2021. While the RBI has not cut the repo rate for the

past five months, banks have reduced their term-deposit rates post

demonetization as they were flush with funds. Further, several banks

have also reduced their home loan rates by up to 90 basis points,

providing some cheer to homebuyers. Following the cut in home loan

rates, some rationalization in prices of housing units and the

enforcement of the Real Estate (Regulation and Development) Act

(RERA) in May, a pick-up in residential sector is anticipated towards

the latter half of 2017.

Market OverviewNew launches improved during the quarter. Overall unit launches

grew threefold from the previous quarter and stood at 4,200 units

driven by large project launches by developers. Average number of

units launched per project was close to 600. 17% of all units

launched this quarter were in the affordable segment with around

17% of the units having smaller configurations such as one

bedroom-hall-kitchen (BHK) and one room-kitchen (RK) to attract

buyers through lower prices. This also pushed the average size

down to 980 square feet (sf) per unit, a 40% decrease quarter-on-

quarter (QoQ).

After demonetization in the previous quarter, buyers are still cautious

and are postponing their buying decisions as they await the setting

up of the Real Estate Regulatory Authority (RERA) and

implementation of the Goods & Services Tax (GST) in the next

quarter. These ensure protection against malpractices and provide

benefits of transparency and rationalization in prices.

Capital values dipped while rental values remained range

bound. The prolonged slowdown in sales and the pressure of

mounting inventory has compelled many developers to reduce the

average base price in almost all the submarkets and across all

segments. At the same time, prices in Central, Off-Central and West

submarkets remained stable.

OutlookLaunches in the affordable segment likely to grow. With the

infrastructure status awarded to affordable housing, developers are

increasingly interested in launching projects in the segment. While

the implementation of RERA and GST may motivate buyers to

invest, quoted capital and rental values are expected to remain

stable.


High-End Segment


Rate (INR/Sf)% Change From Short Term


Central 18,000-30,000 0% 0%

South 7,000-10,500 -11% -8%

Off Central 9,000-12,000 0% 0%

East 6,500-10,000 -8% -8%

North 7,000-11.000 -1% 0%

North-West 8,000-11,000 -2% -2%

Mid Segment

Central 9,500-13,000 0% 0%

East 4,300-5,700 -3% -2%

South-east 4,500-6,500 -3% -2%

North 4,500-6,000 -9% -8%

South 4,500-6,500 -2% 2%

Off Central-I 7,000-10,000 0% 0%

Off Central-II 6,500-8,500 -1% -1%

North-west 6,000-6,750 2% 2%

Far South 3,750-4,500 -1% 0%

West 4,000-5,000 0% 1%

RENTAL VALUES AS OF Q1 2017

High-End Segment


Rent (INR/Mth)% Change From Short Term


Central 120,000-350,000 0% 0%

South 60,000-120,000 0% -14%

Off Central 60,000-150,000 0% -14%

East 70,000-300,000 0% -18%

North 60,000-150,000 0% 0%

North-West 50,000-100,000 0% 0%

Mid Segment

Central 70,000-100,000 0% 0%

East 25,000-40,000 0% 0%

South-east 25,000-45,000 0% 0%

North 20,000-35,000 0% 0%

South 25,000-40,000 0% 0%

Off Central-I 40,000-70,000 0% 0%

Off Central-II 30,000-50,000 0% 0%

North-west 25,000-35,000 0% 0%

Far South 20,000-30,000 0% 0%

West 20,000-30,000 0% 0%


Residential Snapshot Q1 2017BENGALURU, INDIA

MARKETBEAT













Tel: +91 80 40465555

[email protected]

NOTES


* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc.


The above values for mid segment are for units typically of 1,600-2,000 sf

KEY TO SUBMARKETS

High-end Segment

Central: Lavelle Road, Palace Cross Road, Off Cunningham Road, Ulsoor Road, Richmond Road, Sankeys Road

South: Koramangala, Bannerghatta Road, JP Nagar, Banashankari

Off Central: Frazer town, Benson Town, Richards Town, Dollars Colony

East: Whitefield, Old Airport Road

North: Hebbal, Jakkur, Devanahalli

North-west: Malleshwaram, Rajajinagar, Yeshwantpur

Mid Segment

Central: Brunton Road, Artillery Road, Ali Askar Road, Cunningham Road

East: Marathahalli, Whitefield, Old Airport Road, Old Madras Road, Budigere Cross

South-east: Sarjapur Road, Outer Ring Road (Marathahalli- Sarjapur), HSR Layout, Hosur Road

South: Jayanagar, J P Nagar, Kanakapura Road, Bannerghatta Road, BTM Layout, Banashankari

North: Hebbal, Bellary Road, Yelahanka, Doddaballapur Road, Hennur Road, Thanisandara Road

Off Central-I: Vasanth Nagar, Richmond Town, Indiranagar

Off Central-II: Cox Town, Frazer Town, Benson Town, etc.

North-west: Malleshwaram, Rajajinagar, Tumkur Road

Far South: Electronic City

West: Mysore Road, Uttarahalli Main Road, Magadi Road

STATS ON THE GO



Sobha Palm Court Kogilu Main Road Sobha Developers 294 6,100

GM Infinite Elegance Tower Electronic City GM Group 285 4,299



Shriram Chirping Woods Harlur Road Shriram Properties 958 Q3 2017

Brigade Exotica Old Madras Road Brigade Group 454 Q3 2017


Building Location Developer Est. Number of Units Unit Size (SF)

HM Indigo Kanakpura Road HM Constructions 103 1,248 – 1,593

Residential Snapshot Q1 2017CHENNAI

MARKETBEAT



High-End Segment


Rate (INR/Sf)% Change From Short Term


Central 23,000-32,000 0% 1%

Off Central-I 18,000-22,000 0% 0%

Off Cenral-II 12,000-17,000 0% 1%

East Coast Road 6,000-9,500 0% 5%

Mid Segment

Central 14,000-18,000 0% 0%

Off Central-I 15,000-18,000 0% 0%

Off Central-II 9,000-15,000 0% 2%

Suburban South-I 5,000-7,000 0% 7%

Suburban South-II 4,000-7,000 0% 5%

Peripheral South-I 3,200-5,000 0% 5%

Peripheral South-II 3,200-4,500 0% 6%

Suburban North 4,200-7,000 0% 4%

Suburban West 4,400-6,500 0% 7%

East Coast Road 4,500-6,000 0% 0%


High-End Segment


Rent (INR/Mth)



Central 100,000-250,000 0% 0%

Off Central-I 90,000-130,000 0% 0%

Off Cenral-II 50,000-150,000 0% 0%

East Coast Road 100,000-250,000 0% 0%

Mid Segment

Central 50,000-75,000 0% 0%

Off Central-I 45,000-80,000 0% 0%

Off Cenral-II 25,000-50,000 0% 0%

Suburban South-I 22,000-32,000 0% 0%

Suburban South-II 15,000-25,000 0% 0%

Peripheral South-I 18,000-25,000 0% 0%

Peripheral South-II 8,000-15,000 0% 0%

Suburban North 10,000-18000 0% 0%

Suburban West 7000-15000 0% 0%

East Coast Road 50000-100000 0% 0%











demonetization as they were flush with funds. Further, several

banks have also reduced their home loan rates by up to 90 basis

points, providing some cheer to homebuyers. Following the cut in

home loan rates, some rationalization in prices of housing units and

the enforcement of the Real Estate (Regulation and Development)

Act (RERA) in May, a pick-up in residential sector is anticipated

towards the latter half of 2017.

Market OverviewLaunches remain subdued. New unit launches during the quarter

stood at about 1,000 units, a 24% growth from the previous quarter.

However, the number of unit launches continue to be lower than the

amount seen prior to demonetization (more than 1,500 units). Also,

with the RERA expected to be implemented in the next quarter,

developers are focusing on completing existing under-construction

projects. Mid-segment continued to dominate launch activities,

making up 75% of the overall share. The affordable and the high-

end segments each comprised 12% of the overall launches. The

micro-markets of Sholinganallur (Peripheral South-I) and Perambur

(Suburban North) recorded substantial launch activities in the mid-

segment with 34% and 28%, respectively. Sholinganallur, located in

south Chennai, is a preferred location for employees working in the

Information Technology (IT) corridor in this area. In addition, both

Perambur, as well as Sholinganallur, have well established

infrastructure and are well connected to different parts of the city,

fuelling strong demand for residential projects in these locations.

Rental and capital values remained stable Quoted rental and

capital values remained stable across submarkets. However, most

developers sold their stock at discounted prices, especially slow-

moving projects and projects in the luxury segment due to the drop

in demand post demonetization.

OutlookLaunches to remain moderate. New launches in the upcoming

quarter are likely to remain modest due to the restrained buying

sentiment prevailing in the market. Capital and rental values are

likely to remain flat across markets due to abundant supply and

moderate demand.Increase DecreaseStable

# Submarkets have been redefined, capital and rental values have been

recalibrated historically.

Residential Snapshot Q1 2017CHENNAI

MARKETBEAT













Tel: +91 80 40465555

[email protected]

STATS ON THE GO



Chandrika Tiruporur Arun Excello 124 3,398

Olympia Jayanthi Residences Thiruvanmiyur Olympia 54 14,000



KG Earth Homes SiruseriKG Developers & Promoters

176 Q2 2017



Sidharth Upscale Porur Sidharth Housing 388 476 – 2,663

TVH Quadrant Adyar True Value Homes 126 2,235-5,560

NOTES





KEY TO SUBMARKETS

Central: Boat Club, Poes Garden, Nungambakkam

Off Central-I: R.A. Puram, Abhiramapuram, Alwarpet and Teynampet

Off Central-II: T.Nagar, Mylapore, Annanagar, Kilpauk, Thiruvanmiyur, Adyar, Kotturpuram, Besant Nagar, K.K.Nagar, Velachery, Vadapalani

Suburban (North): Madhavaram, Perambur,Thondiarpet

Suburban (South-I): Pre-toll Rajiv Gandhi Salai (Thiruvanmiyur to Sholinganallur)

Suburban South-II: GST Road (Alandur to Tambaram), Porur

Peripheral South-I: Post-toll Rajiv Gandhi Salai (Sholinganallur to Kelambakkam)

Peripheral South-II: GST Road (Perungalathur to Singaperumal Koil), Oragadam

Suburban West: Mogappair, Nolumbur, Ambattur, Poonamallee High Road

Residential Snapshot Q1 2017DELHI-NCR, INDIA

MARKETBEAT



High-End Segment


Rate (INR/sf)% Change From Short Term


South-west 35,000-53,000 -3% -6%

South-east 24,000-35,000 0% -4%

South-central 25,000-43,000 -1% -2%

Central 60,000-90,000 0% 0%

Gurgaon Luxury 19,200-26,000 0% 0%

Gurgaon High-

end

10,750-16,200 -2% -2%

Noida 7,000-9,000 -3% -3%

Mid Segment

South-east 20,000-25,000 -3% -3%

South-central 23,750-33,250 0% 0%

Gurgaon 7,500-10,000 -3% -3%

Noida 4,200-6,500 -3% -7%


High-End Segment




South-west 225,000-425,000 0% -13%

South-east 90,000-225,000 0% -17%

South-central 150,000-275,000 0% -11%

Central 250,000-550,000 0% -3%

Gurgaon Luxury 200,000-275,000 0% -10%

Gurgaon High-

end

65,000-175,000 0% -11%

Noida 50,000-100,000 0% 0%

Mid Segment

South-east 85,000-160,000 0% -3%

South-central 90,000-170,000 0% -3%

Gurgaon 40,000-90,000 0% 0%

Noida 25,000-45,000 0% 0%


















Market OverviewSignificant improvement in new launch activities. New unit

launches increased 75% from the previous quarter at 3,500 units,

indicating a resurgence in developers’ interests in launching new

units. Gurgaon witnessed a higher concentration of new launches

during the quarter with a share of 67%, while the balance was

contributed by Noida. Gurgaon continued its lead over Noida with

respect to new launches on account of its relatively higher demand

potential emanating from a strong commercial office sector. The

micro-markets of New Gurgaon and Dwarka Expressway, located

inside Gurgaon and Greater Noida West in Noida, attracted majority

of the launches during the first quarter of 2017. Nearly 46% of the

unit launches were recorded in the mid-segment, followed by the

high-end segment at 33%. Launches in the high-end segment were

concentrated primarily in the Noida.

Stable rental values while capital values decline. Rental values

maintained their status quo during the quarter on account of steady

demand. In the backdrop of continued lackluster sales combined

with inventory overhang, quoted capital values softened by 1-3% in

both the mid- and high-end segments across most of the

submarkets as actual sales are taking place at discounted prices.

OutlookLaunches to remain at similar levels. Launches are expected to

maintain a steady pace in the upcoming quarter with a higher focus

on the affordable segment. Capital values in Gurgaon and Noida are

likely to remain under pressure due to high unsold inventory and

expected slower sales.

IncreaseDecreaseStable

Residential Snapshot Q1 2017DELHI-NCR, INDIA

MARKETBEAT













Tel: +91 80 40465555

[email protected]

STATS ON THE GO



ROF Ananda Gurgaon ROF Infratech 750 4,000

Raheja Vanya Gurgaon Raheja Developers 500 4,475



Diplomatic Greens Ph-2 Gurgaon Puri Construction 700 Q2 2017

The Primus Gurgaon DLF 624 Q2 2017



Regal Gardens Gurgaon DLF 524 1,693 – 2,215

NOTES





KEY TO SUBMARKETS

High-end Segment

South-west: Shanti Niketan, Westend, Anand Niketan, Vasant Vihar, etc.

South-east: Friends Colony East, Friends Colony West, Maharani Bagh, Greater Kailash – I, Greater Kailash – II, etc.

South-central: Defence Colony, Anand Lok, Niti Bagh, Gulmohar Park, Hauz Khas Enclave, Safdarjung Development Area, Mayfair Gardens, Panchsheel Park, Soami

Nagar, Sarvaodaya Enclave, etc.

Central: Jorbagh, Golf Links, Amrita Shergil Marg, Aurangzeb Road, Prithviraj Road, Sikandara Road, Tilak Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar,

Nizamuddin, Tees January Marg, Chanakyapuri, etc.

Gurgaon-Luxury: Golf Course Road

Gurgaon-High end: Golf Course Road, Mehrauli-Gurgaon Road, Golf Course Extension Road, Sohna Road, Central Gurgaon and Dwarka Expressway

Noida: Sectors 34-37, 39-41, 44, 50, 51, 92, 93, 96-98, 128 and 133

Mid Segment

South-east: New Friends Colony, Kalindi Colony, Ishwar Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave, etc.

South-central: Uday Park, Green Park, Saket, Asiad Village, Geetanjali Enclave, Safdarjung Enclave, Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar, etc.

Gurgaon: Sohna Road (Sectors 38, 47-49), Southern Peripheral Road, New Gurgaon, Dwarka and Sohna

Noida: Sectors 50, 74-79, 82, 83, 110, 112, 115-121, 134, 135, 137, 143, 150, 151 and 168), Greater Noida and Yamuna Expressway

Road

Residential Snapshot Q1 2017HYDERABAD

MARKETBEAT


Miyapur, Nizampet 10,000-17,500 4% 4%


High-end Segment



Outlook3 Mth

Ago

1 Yr

Ago

Banjara Hills 8,000-11,000 0% 3%

Jubilee Hills 8,000-11,000 1% 6%

Himayathnagar 4,500-5,500 0% 7%

West & East Marredpally 4,000-5,500 0% 0%

Begumpet, Somajiguda 4,500-6,500 0% 0%

Madhapur, Gachibowli 4,500-6,500 0% 4%

Kukatpally 4,000-6,000 0% 1%

Kompally 3,200-4,200 0% 0%

Mid Segment

Banjara Hills 4,000-6,000 0% 0%

Jubilee Hills 4,000-5,500 0% 0%

Himayathnagar 3,500-4,500 0% 0%




Kukatpally 3,500-4,300 0% 1%

Miyapur, Nizampet 3,000-4,000 0% 1%


High-end Segment


Rent (INR/Mth)


Outlook3 Mth

Ago

1 Yr

Ago

Banjara Hills 58,000-150,000 0% 0%

Jubilee Hills 57,000-150,000 0% 0%

Himayathnagar 20,000-36,000 0% 4%




Kukatpally 20,000-39,000 0% 0%

Mid Segment

Banjara Hills 22,000-30,000 0% 0%

Jubilee Hills 23,000-30,000 0% 0%

Himayathnagar 13,500-16,000 5% 7%




Kukatpally 13,500-20,000 8% 8%


















Market OverviewDip in launch activities. New unit launches in the first quarter of

2017 recorded a 16% decline quarter-on-quarter (QoQ) at about

1,800 units. Developers are deferring their launches in the wake of

the current slowdown in sales and are focusing instead on offering

ready-to-move in properties to buyers. The launch of a large project

in Nizampet led to the micromarket taking a 63% share of the total

unit launches. This was followed by the submarkets of Madhapur

and Gachibowli, who have a combined 30% share of unit launches.

Majority of the launches in the quarter were the mid-segment (62%),

followed by the affordable segment. Due to steady demand from

Information Technology-Business Process Management (IT-BPM)

employees and its close proximity to the Hi-Tech city, the

submarket of Miyapur-Nizampet has witnessed an increase in

demand as a residential market.

Quoted capital values remained steady, rental appreciation in

select submarkets. Rental values in the submarkets of Kukatpally

and Miyapur-Nizampet increased 8% and 4%, respectively due to

higher demand from IT-BPM employees. While the quoted capital

values across most submarkets remained steady during this

quarter, small and unorganized developers were offering sweeter

packages and incentives to close deals for genuine buyers.

OutlookLaunch activities to remain subdued. As developers are likely to

focus on completing existing under-construction projects, new

launches are expected to be limited in the upcoming quarter. In

addition, capital and rental values are expected to remain stable in

the upcoming quarter.


Residential Snapshot Q1 2017HYDERABAD

MARKETBEAT













Tel: +91 80 40465555

[email protected]

STATS ON THE GO



Regalia Kokapet Rajapushpa 490 4,200

Shreerath Apartment Nizampet Unnati Group 1,064 3,500



My Home Avatar II Narsingi My Home Constructions 1,390 Q1 2018

Serene Park Kondapur Aparna Constructions 1,900 Q1 2019



Carlton Creek Khajaguda Jain Housing & Constructions Ltd. 1,664 758 – 1,364

NOTES





Residential Snapshot Q1 2017KOLKATA, INDIA

MARKETBEAT



High-End Segment


Rent (INR/Mth)



South 63,000-85,000 0% 0%

South-central 100,000-165,000 0% 0%

South-east# 40,000–85,000 0% 0%

South-west 100,000-185,000 0% 0%

Central 85,000-155,000 0% 0%

East 38,000-68,000 0% 0%

North 35,000-70,000 0% 0%

North-east 43,000-66,000 0% 0%

Mid Segment

South 20,000-35,000 0% 0%

South-central 28,000-36,000 0% 0%

South-east# 20,000-35,000 0% 0%

North-east# 15,000-25,000 0% 0%

North 16,500-31,000 0% 0%








purposes, was seen at 3.6%, treading well below the

government’s target of 4% till 2021. While the RBI has not cut

the repo rate for the past five months, banks have reduced their

term-deposit rates post demonetization as they were flush with

funds. Further, several banks have also reduced their home loan

rates by up to 90 basis points, providing some cheer to

homebuyers. Following the cut in home loan rates, some

rationalization in prices of housing units and the enforcement of

the Real Estate (Regulation and Development) Act (RERA) in

May, a pick-up in residential sector is anticipated towards the

latter half of 2017.

Market OverviewDip in new unit launches. The first quarter of 2017 recorded a

40% decline in new unit launches at around 2,400 units. The

decline was noted after a strong momentum in launch activities

in the previous two quarters. Average number of units per project

decreased from 582 in the previous quarter to 243 in the current

quarter, indicating a trend of launching relatively small-sized

projects. The north-east submarket of Rajarhat had the highest

contribution (58%) to new unit launches during the quarter,

followed by combined 28% share for the peripheral submarkets

of Barasat and BT Road in the north.

In a trend similar to the previous quarter, developers maintained

their focus on the affordable segment, which contributed 85% of

the total new launches. The submarkets of Rajarhat, Barasat and

BT Road recorded almost all of the launches in the affordable

category. The mid-segment made up about 10% of the newly

launched units, mainly in the southern submarkets of

Narendrapur, Nayabad, and EM Bypass.

Capital and rental values remained unchanged. Quoted

capital values in both the high-end and mid-segments maintained

their status quo during the quarter, as developers continued to

hold on to the prevailing market rates despite the lower sales

momentum. Rental values also remained broadly unchanged

from the previous quarter due to steady demand and adequate

availability in the market.

OutlookPrices expected to remain unchanged. Quoted capital and

rental values are expected to remain stable over the next

quarter. New unit launches are likely to remain at similar levels

as this quarter.


High-End Segment


Rate (INR/sf)



South 7,500-13,000 0% 7%

South-central 12,500-18,500 0% -1%

South-east 6,200-12,500 0% 0%

South-west 12,000-17,000 0% 2%

Central 12,000-19,500 0% 4%

North 6,500-9,500 0% 8%

East 5,000-7,750 0% 8%

North-east 4,350-6,500 0% 8%

Mid Segment

South 4,000-6,700 0% 6%

South-central 5,900-9,250 0% 0%

South-east 3,000-5,550 0% 8%

North-east 2,900-4,250 0% 5%

North 3,150-6,200 0% 7%

Increase Stable Decrease

Residential Snapshot Q1 2017KOLKATA, INDIA

MARKETBEAT













Tel: +91 80 40465555

[email protected]

STATS ON THE GO



Usashi King Town Barasat Usashi Real Estate 586 2,094

Rajwada Grand Avenue Narendrapur Rajwada Group 90 3,800



Deeshari Megacity Sonarpur Deeshari Group 855 Q2 2017



Godrej Platinum Alipore Godrej Properties 120 3,762 – 5,075

NOTES





KEY TO SUBMARKETS

High-end Segment

South: Southern Avenue, Hindustan Park, Triangular Park, Lake Terrace

South-central: Ballygunge, Queens Park, Rainy Park, Gurusaday Road, Ballyguange Circular Road, Dover Lane

South-east: EM Bypass - Science City, Christopher Road, Pancha Sayar

South-west: Alipore Park Road, Ashoka Road, Burdwan Road, Belvedere Road

Central: Park Street, Camac Street, Shakespeare Sarani, Minto Park, Elgin Road, Lee Road, Loudon Street, Rowdon Street

North: Kankurgachi, Lake Town, VIP Road, Ultadanga, Narkeldanga Main Road

East: Salt Lake

North-east: New Town, Rajarhat

Mid Segment

South: Golf Green, Tollygunge, Lake Gardens, Jodhpur Park

South-central: Deshpriya Park, Hazra Road, Bhawanipur

South-east: Ajoy Nagar, Hiland Park, PA Shah Connector

North-east: Rajarhat, Rajarhat Chowmatha

South-west: Tollyguange Circular Road, New Alipore, Behala, Jones Lang Sarani

North: Jessore Road, Ultadanga, Shyambazar, Bagbazar, Girish Park, Manicktala, Dum Dum

North-peripheral: BT Road, Barasat, Madhyamgram, Sodepur

South-peripheral: Garia, Narendrapur, Sonarpur,

South-west peripheral**: Joka, Maheshtala, Budge Budge, Thakurpukur

Residential Snapshot Q1 2017MUMBAI, INDIA

MARKETBEAT


<CITY> OFFICERENTAL VALUES AS OF Q1 2017

High-End Segment


Rent (INR/Mth)

% Change From Short

Term

Outlook3 Mth

Ago

1 Yr

Ago

South 60,000-700,000 0% 0%

South Central 50,000-550,000 0% 0%

Eastern Suburbs 25,000-400,000 0% 0%

Western Suburbs

– Prime50,000-800,000 0% 0%

Western Suburbs 25,000-220,000 0% 0%

Mid Segment

Eastern Suburbs 18,000-70,000 0% 0%

Western Suburbs 20,000-80,000 0% 0%

Thane 14,000-28,000 0% 0%

Navi Mumbai 10,000-50,000 0% 0%


High-End Segment


Rate (INR/sf)

% Change From Short

Term

Outlook3 Mth

Ago

1 Yr

Ago

South 40,000-83,000 0% 2%

South Central 23,000-80,000 -2% 3%


Western Suburbs

– Prime18,000-50,000 0% 5%


Mid Segment



Thane 7,000-14,000 0% 5%

Navi Mumbai 5,000-15,000 0% 4%







households. In February, the Consumer Price Index (CPI), a key price

indicator of the Reserve Bank of India (RBI) for policy purposes, was

seen at 3.6%, treading well below the government’s target of 4% till

2021. While the RBI has not cut the repo rate for the past five months,

banks have reduced their term-deposit rates post demonetization as

they were flush with funds. Further, several banks have also reduced

their home loan rates by up to 90 basis points, providing some cheer

to homebuyers. Following the cut in home loan rates, some

rationalization in prices of housing units and the enforcement of the

Real Estate (Regulation and Development) Act (RERA) in May, a

pick-up in residential sector is anticipated towards the latter half of

2017.

Market OverviewUnit launches increased. Overall unit launches increased 21% from

the previous quarter at nearly 6,900 units. This was led by the launch

of new phase in a township project which accounted for 40% of the

total unit launches in the submarket of Kalyan/Dombivli. Kandivali in

the Western suburbs accounted for 36% of unit launches driven by

local developers, The share of large-sized apartments, three

bedroom-hall-kitchen (BHK) and more, declined to 17% from 22% in

the previous quarter as developers are slowing down on the high-end

and luxury segments.

Nearly 54% of the unit launches were recorded in the mid-segment,

followed by the affordable segment at 41%. Thane continued its

momentum and recorded the maximum unit launches within the

affordable (71%) and mid (37%) segments. The buoyancy in launches

reflects the focused efforts of the government to increase supply

through supportive policy and infrastructure initiatives.

Rental and capital values largely remained range-bound. Rental

values remained range-bound across most of the submarkets during

the quarter. Quoted capital values in South Central Mumbai softened

2% on the back of slower sales and higher supply. At the same time,

quoted capital values increased 2% in the Eastern Suburbs due to

favourable responses for select projects in Kanjurmarg and Vikhroli.

However, buyers are getting reasonable discounts on actual sales in

slow-moving markets.

OutlookLimited launch activities. New unit launches are expected to decline

as developers gear-up for RERA and the roll-out of the Goods and

Services Tax (GST), both of which will have impact on their costs and

prices. Capital values in South Central Mumbai are likely to be under

pressure due to higher amount of under-construction units and slow

demand.

Residential Snapshot Q1 2017MUMBAI, INDIA

MARKETBEAT











STATS ON THE GO



Lodha Central Park Dombivali Lodha Group 2,500 5,500

Siddha Seabrook Kandivali Siddha Group. 261 18,000



Sky City Borivali Oberoi Realty 1,080 Q2 2021

Central Park Chembur Radius Developers 650 Q4 2020



Signia Pearl Bandra-Kurla Complex Sunteck Developers 80 3,593-3,700

NOTES





KEY TO SUBMARKETS

High-end Segment

South: Colaba, Cuffe Parade, Nariman Point, Churchgate, Altamount Road, Carmichael Road, Malabar Hill, Napeansea Road, Breach Candy, Pedder Road, Tardeo

South Central: Worli, Prabhadevi, Lower Parel / Parel, Dadar, Matunga

Eastern Suburbs: Wadala, Sion, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali

Western Suburbs - Prime: Bandra, Khar, Santacruz, Juhu

Western Suburbs: Andheri, Vile Parle, Jogeshwari, Goregaon, JVLR, Malad

Mid Segment

Eastern Suburbs: Sion, Wadala, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali, Kanjurmarg, Bhandup, Mulund

Western Suburbs: Andheri, Jogeshwari, Goregaon, JVLR, Malad, Kandivali, Borivali, Dahisar

Thane: Thane, Ghodbunder Road

Navi Mumbai: Airoli, Ghansoli, Rabale, Koparkhairane, Vashi, Turbhe, Sanpada, Nerul, Belapur, Kharghar, Panvel



Tel: +91 80 40465555

[email protected]

Residential Snapshot Q1 2017Pune

MARKETBEAT


EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0% during

the October-December quarter of 2016, dropping 0.4 percentage

points from the previous quarter’s 7.4%. The healthy growth rate

however, came in a quarter that was marked by demonetization of the

Rupee, which squeezed liquidity among households. In February, the

Consumer Price Index (CPI), a key price indicator of the Reserve Bank

of India (RBI) for policy purposes, was seen at 3.6%, treading well

below the government’s target of 4% till 2021. While the RBI has not

cut the repo rate for the past five months, banks have reduced their

term-deposit rates post demonetization as they were flush with funds.

Further, several banks have also reduced their home loan rates by up

to 90 basis points, providing some cheer to homebuyers. Following the

cut in home loan rates, some rationalization in prices of housing units

and the enforcement of the Real Estate (Regulation and Development)



Market OverviewLaunch activities continue to be tepid. Pune launched about 4,300

units during the first quarter of 2017, similar to the previous quarter.

Select large projects were launched during the quarter as developers

continue to evaluate their launch strategy on the back of moderate

sales and while waiting further clarity on the rules for the enforcement

of the RERA.

Majority of the unit launches were in the mid-segment, nearly 88% of

which were concentrated in the submarkets of NH4 Bypass (North)

and East. The share of the affordable segment declined to 46% from

57% in the previous quarter. One and two bedroom-hall-kitchen (BHK)

units combined for nearly 83% of the launches during the quarter.

Quoted rental and capital values recorded mixed trends in select

submarkets. Quoted capital values in the submarkets of Koregaon

Park and Nagar road increased 2-3% in the high-end segment. The

submarket of Aundh-Baner recorded a marginal decline due to excess

supply and spillover of demand to the adjacent submarkets of Wakad

and Pashan. Rental values remained steady across submarkets,

except in the North-east and Pimpri submarkets which witnessed a 2%

increase from the previous quarter due to the high demand from

people employed in the Information Technology-Business Process

Management (IT-BPM) sector (in Kharadi and Wagholi) and the

industrial corridor towards Pimpri.

OutlookLaunch activities to remain slow. New launches are expected to be

restricted in the upcoming quarter as developers are likely to focus on

completing existing under-construction projects. Prices are expected to

remain stable, given the high unsold inventory and expected slower

pick-up in demand.

<CITY> OFFICE


High-End Segment




Koregaon Park –

Boat Club

100,000-220,000 0% 0%

Aundh-Baner 75,000-130,000 0% 0%

Nagar Road 70,000-140,000 0% 0%

East 55,000-140,000 0% 0%

Mid Segment

Koregaon Park -

Boat Club

30,000-45,000 0% 0%

Aundh-Baner 17,000-32,000 0% 4%

Kothrud 14,000-21,000 0% 0%

Nagar Road 15,000-35,000 0% 0%

North-East 12,000-20,500 2% 2%

East 11,500-20,000 0% 0%

South-East – I 13,000-22,000 0% 0%

South-East II 8,500-13,000 0% 0%

NH4 Bypass

(North)

11,000-18,500 0% 2%

Pimpri 10,500-17,500 2% 6%

<CITY> OFFICECAPITAL VALUES AS OF Q1 2017

High-End Segment




Koregaon Park -

Boat Club

14,000-19,000 3% 7%

Aundh-Baner 8,500-13,000 0% -3%

Nagar Road 9,500-14,500 2% 6%

East 8,500-13,000 0% 6%

West 13,000-17,500 0% 6%

Mid Segment

Koregaon Park -

Boat Club

8,500-10,500 0% 3%

Aundh-Baner 6,500-8,200 -1% -5%

Kothrud 8,500-11,250 0% 1%

Nagar Road 6,000-7,800 0% -1%

North-East 3,600-6,200 0% 4%

East 4,300-5,800 0% 3%

South-East – I 5,300-7,200 0% 9%

South-East – II 3,750-5,500 0% 1%

NH4 Bypass

(North)

4,200-6,100 0% 2%

Pimpri 4,000-6,000 0% 5%


Residential Snapshot Q1 2017Pune

MARKETBEAT













Tel: +91 80 40465555

[email protected]

STATS ON THE GO



Atria Grande Handewadi Atria construction 570 3,199

Forest Trail Bhugaon Paranjape Schemes

Construction Limited

300 5,800



Umang Kharadi Kolte-Patil Developers 3,000 Q2 2017

Dream City Phursungi DSK Group 1,090 Q4 2017



Raheja Vistas Premiere NIBM K Raheja Corp 160 1,335-2,050

Montvert Oystera Wakad Montvert 88 992

NOTES


* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges,

etc.

The above values for high-end segment are for units typically of 1,600 sf and above


KEY TO SUBMARKETS

High-end Segment

Koregaon Park-Boat Club: Koregaon Park, Bund Garden Road, Boat Club Road, Mangaldas Road

Aundh-Baner: Aundh, Baner

Nagar Road: Kalyani Nagar, Viman Nagar

East: Sopan Baug, Uday Baug, Hadapsar

West: Deccan Gymkhana, Model Colony, Prabhat Road, Erandwane, Bhosale Nagar

Mid Segment

Koregaon Park-Boat Club: Koregaon Park, Bund Garden Road, Boat Club Road, Mangaldas Road

Aundh-Baner: Baner, Baner Road

Kothrud: Kothrud

Nagar Road: Kalyani Nagar, Yerwada, Shashtri Nagar, Viman Nagar, Old Airport Road, Vishrantwadi

North-East: Kharadi, Wagholi, Wadgaon Sheri

East: Hadapsar, Manjri, Mundhwa, Keshavnagar

South-East - I: Wanowrie, NIBM Road, Lulla Nagar

South-East - II: Undri, Kondhwa, Pisoli

NH4 Bypass (North): Balewadi, Mahalunge, Wakad, Hinjewadi, Punawale, Kiwale, Ravet, Tathawade, Bhugaon, Bavdhan, Pashan, Sus

residential snapshot q1 2017 - cushman & wakefield ... snapshot q1 2017 marketbeat economy...

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