India Residential Property Market Overview November 2013

Residential Property Market Overview
INDIA
QUARTERLY UPDATE | NOVEMBER | 2013
Accelerating success.
INDIA | NOVEMBER 2013 | RESIDENTIAL
RESEaRCH INDia RESIDENTIAL & FORECaST MaRKET REPORT
ResearcH SYDNEY CENTRAL & FOrecast BUSINESS rePOrt DISTRICT
MACRO ECONOMIC OVERVIEW

GDP growth estimates for the period that lasted from April to June 2013 were around 4.4%. This was the slowest growth rate recorded in the last four years. Based on the wholesale price index, the headline inflation of October 2013 was at 7.00%, which marked an increase over the 6.46% headline inflation of September 2013. The Reserve Bank of India (RBI) increased the Repo Rate and Reverse Repo Rate by 25 basis points to 7.50 and 6.50 respectively. The Indian Rupee plunged further compared to the US Dollar and the Euro in the quarter that spanned from July to October 2013 and closed at INR 61.07 against the US Dollar on 31st October 2013.
Oct-13 7.50% 6.50% 4.00% 7.00% 10.10%
ECONOMIC BAROMETER
Oct-12 REPO RATE REVERSE REPO RATE CRR INFLATION HOME LOaN RaTE
1
8.00% 7.00% 4.25% 7.32% 10.00%
Demand for residential units in both the primary and secondary markets remained subdued. Pressures of increasing unsold inventory and a liquidity crunch resulted in fewer project launches. There was an increase in the incentives being offered to sell property, such as easy payment plans, discounts and free gifts with bookings. COLLIERS VIEW: End Users and buyers will continue to be cautious due to the current uncertain economic and political conditions; coupled with high residential prices. Capital values across most micro-markets in almost all the major cities will remain stable, even though transaction volume will remain constraint. Importantly, the current oversupply in the market will get mitigated in the coming quarters, as very limited new projects are being launched.
Return On AlternatiVe InVestments

Oct-12 Oct-13 YoY % Change GOlD SILVER FiXED DEPOSiT EQUITY REALTY INDEX
3 2
ECONOMIC INDICATORS
12.0 11.0 10.0 9.0 8.0
30,922 59,853 8.50% 18,714 1,879
30,063 45,917 9.00% 20,548 1,328
-2.78% -23.28% 5.58% 9.80% -29.33%

In Percentage
7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0
SBI Home Loan Rate for Loan upto INR 30 Lakhs SBI Fixed Deposit rate for a period of more than one year and amount below INR 1 Crore 3 Realty Index is a free float weighted index, comprised of real estate development companies in the BSE-500 Index.
1 2
Apr 08
jun 08
Aug08
Oct08
Dec08
Feb 09
Apr 09
Jun 09
Aug09
Oct09
Dec09
Feb10
Apr10
Jun10
Aug10
Oct10
Dec10
Feb11
Apr11
Jun11
Aug11
Oct11
Dec11
Feb12
Apr12
Jun12
Aug12
Oct12
Dec12
Feb13
Apr 13
Jun 13
Aug 13
-1.0 -2.0
Repo Rate
Cash Reserve Ratio
Wholesale Price Index
Source: Goverment of India, Colliers International India Research
www.colliers.com
Oct 13
INDIA | NOVEMBER 2013 | RESIDENTIAL MUMBAI

Mumbais residential property market witnessed low transaction volumes, despite the expected demand boost due to the festive season. This is attributed to various reasons, such as high price tags, making most projects unaffordable and Reserve Bank of Indias directive to discontinue the popular 80:20 financing scheme. The launch of new projects remained limited. Only a few premium projects were launched in locations, such as Prabhadevi, Wadala and Worli. These projects were priced in the range of INR18,000 - 45,000 per sq ft. Due to lack of capital, most of the residential projects in the luxury sector have been significantly delayed. The average rental values across the city did not change during the quarter. Similarly, capital values also remained unchanged in most of the citys micro markets, except in a few of West Mumbais precincts where marginal increases in the range of 1 - 3% QoQ were recorded. COLLIERS VIEW: During the next few quarters, the citys residential markets are expected to remain stagnant due to low liquidity and high price points. Absorption in the luxury segment will remain under pressure. The pre-launches in the mid and low end segment will continue to have traction at the introductory prices. The recent hike in the floor space index of 3 for the redevelopment of cessed buildings is expected to boost the citys redevelopment projects to some extent and improve the overall supply situation over the long term. Overall capital values in the primary and secondary sales markets are expected to be under pressure in the short to medium term.
80,000 70,000 60,000 INR per sq.ft. 50,000 40,000 30,000 20,000 10,000 0 South Mumbai Khar Prabhadevi Santacruz Worli Juhu Andheri
Andheri Worli Santacruz
AVERAGE CAPITAL VALUE RANGE
MuMBAI
AVERAGE RENTAL VALUE

Malabar Hill, Altamount Road, Carmichael Road
CITY RESIDENTIAL BAROMETER

3Q 2013
Capital Value Rental Value New Project Construction Pace
Bandra
200
4Q 2013F
Powai
Breach Candy, Napeansea Road, Peddar Road
150 100 50 0
Juhu Worli Colaba, Cuffe Parade
INVESTMENT OPPORTUNITIES
Micro Market Thane-Kalyan Navi Mumbai Virar- Boisar Ongoing Price (P.S.F) 4,000 - 8,000 3,500 - 7,500 3,000 - 5,500
INR per sq.ft. per month
Andheri
Santacruz
Prabhadevi
Khar
Bandra
AVERAGE CAPITAL VALUE TRENDS

80,000 70,000 60,000 50,000 INR Per sq.ft. 40,000 30,000
Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft.
20,000 10,000 0
1Q2008
1Q2009
1Q2010
1Q2011
1Q2013
3Q2013
1Q2012
Powai
Powai Khar Prabhadevi Breach Candy, Napeansea Road, Peddar Road
Colaba, Cuffe Parade Bandra Juhu Malabar Hill, Altamount Road, Carmichael Road
Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis.
SELECT NEW PROJECTS PROjECT NaME

Bay One New Cuffe Parade Codename Metropolis Princess The Park Sapphire LOCaTiON Prabhadevi Wadala Prabhadevi Worli Powai DEvElOPER NaME Hubtown Ltd. Lodha Group Sumer Group Lodha Group Sai Group of Industries TENTaTivE POSSESSiON* 4Q 2017 4Q 2015 4Q 2016 4Q 2017 4Q 2015 RaTE (PER Sq.FT.)** 45,000 18,700 27,000 24,470 10,500
Note: * As mentioned by developer ** Base selling price as quoted by developer
COlliers InternatiOnal |
P. 3
3Q2014F
3Q2008
3Q2009
3Q2010
3Q2011
3Q2012
1Q2014F
INDIA | NOVEMBER 2013 | RESIDENTIAL delHI

120,000

105,000 90,000 INR per sq.ft. 75,000 60,000 45,000 30,000 15,000
Demand in the secondary sales market for premium residential properties have come down significantly this quarter, however due to the continual interest of expatriates and HNIs in the prime locations of South and Central Delhi, the demand for leasing remained stable for premium properties. The new supply remained limited and primarily in the form of small redevelopment projects in areas, such as Vasant Vihar, Anand Niketan and Safdarjung Enclave.
DElHi
Golf Links, Jor Bagh, Sunder Nagar
Panchashila, Anandlok, Niti Bagh, SDA 1Q2013
Shanti Niketan, Westend
Prithviraj Road, Aurangzeb Road
Friends Colony, Maharani Bagh

3Q 2013
4Q 2013F
Due to the decisions of a number of MNCs / Embassies to attempt to contain their costs in the wake of the current economic scenario, rental values declined by 5 - 14% across the micro markets.

Prithviraj Road, Aurangzeb Road
200
Anand Niketan, Vasant Vihar
160 120 80 40
Anand Niketan, Vasant Vihar
Chanakya Puri
There is a downward pressure on capital values as the asking price for prime residential properties in Delhi has come down by approximately 10 - 15%. However, not many deals have been concluded in the market. A number of infrastructural projects are taking place in the city simultaneously and causing traffic problems in select locations. This may cause the leasing demand to temporarily shift from these areas to other locales. COLLIERS VIEW: Currently, Investors are holding for their decisions due to economic and political uncertainties. The activity in premium residential market will remain sluggish till the election. However, considering the fact that Delhis lease market is primarily driven by the officials of MNCs and expatriates that are currently trying to optimize their costs, rental values may further decline.
Greater Kailash I & II, South Extension
Golf Links, Jor Bagh, Sunder Nagar
Friends Colony, Maharani Bagh Panchashila, Anandlok, Niti Bagh, SDA
Shanti Niketan, Westend

100,000 90,000 80,000 70,000 60,000 INR Per sq.ft. 50,000 40,000 30,000 20,000 10,000 1Q2009 0
1Q2008
3Q2012
3Q2013
1Q2014F
Greater Kailash I & II, South Extension 3Q2014F
Chanakya Puri
3Q2010
3Q2009
1Q2011
3Q2008
3Q2011
1Q2010
1Q2012
Golf Links, Jor Bagh, Sunder Nagar Chanakya Puri Panchashila, Anandlok, Niti Bagh, SDA Greater Kailash I & II, South Extension
Prithviraj Road, Aurangzeb Road Shanti Niketan, Westend Friends Colony, Maharani Bagh Anand Niketan, Vasant Vihar
SELECT ONGOING PROJECTS PROjECT NaME

Capital Greens Castlewood Kings Court Queens Court Winter Hills LOCaTiON Shivaji Marg Okhla Greater Kailash- II Greater Kailash- II Dwaraka Morh DEvElOPER NaME DLF Ltd. Indiabulls Ltd. DLF Ltd. DLF Ltd. Umang Realtech TENTaTivE POSSESSiON* 2Q 2015 4Q 2013 1Q 2015 1Q 2015 4Q 2013 RaTE (PER Sq.FT.)** 14,000 12,800 36,000 36,000 10,250
P. 4
| COlliers InternatiOnal
INDIA | NOVEMBER 2013 | RESIDENTIAL GURGAON

Gurgaons residential market remained stagnant for a second consecutive quarter. Sales volumes have reduced significantly, primarily because investors arent purchasing. However, the market continues to see robust demand for projects close to completion. At the end of the quarter, with the start of the festive season, developers made lucrative offers to purchasers of residential real estate to revive demand. The various offers made by developers include deferred payment plans and waived charges on amenities such as free car parking, power back-up, club membership and freebies, such as microwave ovens, LCD TVs and washing machines, etc. During 3Q 2013, two premium projects / parts of projects were launched in Gurgaon DLF Camelias on Golf Course Road and Microtek Green Burg, by Microtek which were priced at INR25,000 per sq ft and INR16,950 per sq ft, respectively. A few more affordable projects were launched in the recently notified Sohna region in the price range of INR 4,000 - 5,000 per sq ft. Construction activity was slow and resulted in the completion of only a few premium residential projects / phases of projects, such as Spaze Privy, a property developed by the Spaze Group at Sector 72. The capital values of prime residential properties declined marginally by 1 - 3% QoQ in almost every micro market. However, they remained stable in a few locations, such as Sushant Lok and NH-8. COlliERS ViEw: End-users activity is expected to remain restricted primarily due to high price points and relatively very less options available for mid-segment housing. Looking ahead, we expect demand for prime residential properties to remain stable. Capital and rental values both will remain under pressure and may decline by 2-4% in near term across all the micro markets.
DLF Camelias Isle De Royale M3M Escala Microtek Green Burg Tangerine LOCaTiON Golf Course Road Gwal Pahadi Sector 70A Sector 86 Sector 89A DEvElOPER NaME DLF Ltd. ASF Group M3M Microtek ATS Group TENTaTivE POSSESSiON* 4Q 2018 4Q 2017 4Q 2017 4Q 2017 4Q 2017 RaTE (PER Sq.FT.)** 25,000 6,500 6,250 6,950 6,750
45,000 40,000 35,000 INR per sq.ft. 30,000 25,000 20,000 15,000 10,000 5,000 0
Golf Course Road
Sohna Road & Ext
Sushant Lok
GuRgaON

Golf Course Road

3Q 2013
80 60 40
NH - 8
4Q 2013F
20 0
Sohna Road & Ext
Micro Market Golf Course Extension Road Sohna Region Pataudi Road New Gurgaon Ongoing Price (P.S.F) 7,500 - 9,000 4,000 - 5,000 4,500 - 5,500 4,000 - 5,000
Sushant Lok
DLF Phase I

18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
INR Per sq.ft.
1Q2011
DLF Phase I
NH - 8
NH-8 Golf Course Road
Sohna Road & Ext Sushant Lok
DLF Phase I
P. 5
3Q2014F
3Q2009
1Q2010
1Q2012
1Q2013
3Q2008
3Q2010
3Q2012
3Q2013
3Q2011
1Q2014F
1Q2009
INDIA | NOVEMBER 2013 | RESIDENTIAL nOida

The NOIDA residential market witnessed comparatively fewer launches in 3Q 2013 than in the previous two quarters and the higher cost of debt compelled over-leveraged developers to try to liquidate their land-banks and existing projects. As a result, developers refrained from launching new projects and concentrated on selling their unsold stock. A number of developers offered various giveaways such as gold coins and electronic gadgets, subvention in the EMI, special cash discounts, free car parking, power backups, etc. to attract customers. Customers responded well to these offers and the market witnessed marginal increase in sales activity. The city did not witness any major completions this quarter as those projects scheduled to complete this quarter were delayed until early 2014. Despite a revival in demand, overall capital and rental values remained stable due to the high stock level. However, projects nearing completion witnessed a 5-10% increase in capital values due to high-end user demand. COlliERS ViEw: The market is expecting the completion of various projects that were launched during 2009-2010 and which have already been delayed from 1-2 years. This additional supply will keep rental values stable. Capital values will also remain stable across all the micro markets although projects nearing completion may see marginal increases.
12,000 10,500 9,000 INR per sq.ft. 7,500 6,000 4,500 3,000 1,500 0
Sector 61, 62., 63
Sector 92/93
Sector 50
Sector 44
NOiDa

Sector 44

3Q 2013
40 30 20
Sector 28, 29, 30
4Q 2013F
10 0
Sector 50
Micro Market NOIDA Expressway Sector 71 to 83 Ongoing Price (P.S.F) 4,000 - 7,000 4,500 - 5,500
Sector 92/93
Sector 61, 62., 63

12,000 10,500 9,000 7,500 INR Per sq.ft. 6,000 4,500 3,000 1.500 0 1Q2010 3Q2010 1Q2011 3Q2011 1Q2012 3Q2012 1Q2013 3Q2013 1Q2014F 3Q2014F 3Q2009
Sector 61,62,63 Sector 92 / 93
Sector 50 Sector 28,29,30

Antriksh Aralias The Downtown Mirabella Saha Amadeas Wave Livork LOCaTiON Sector 150 Sector 98 Sector 79 Sector 143 Sector 32 DEvElOPER NaME Antriksh Group Sikka Group Mahagun Group Saha Group Wave Group TENTaTivE POSSESSiON* 4Q 2016 4Q 2015 4Q 2016 4Q 2016 4Q 2017 RaTE (PER Sq.FT.)** 4,700 18,415 - 18,610 4,650 6,500 8,850
P. 6
Sector 28, 29, 30

Sector 44
INDIA | NOVEMBER 2013 | RESIDENTIAL CHENNAI

During the quarter, increased traction was witnessed in Chennais residential market. The demand for premium and mid-segment projects remained upbeat. Due to the areas proximity to the Anna Nagar & Chennai bypass road, a lot of investment activity was witnessed in Kolathur in North Chennai. Moreover, the completion of the Perambur flyover helped to improve the access to this emerging location. In 3Q 2013, numerous new projects were launched in the city. Locations, including R.A. Puram, Nungambakkam, Poonamallee, R.K. Salai, Moolakadai, Ambattur, Kovur and Polivakkam, had the largest number of new launches. Most of these projects were priced in the range of INR3,950 - 4,900 per sq ft. The premium projects that were launched in these areas had prices in the range of INR18,500 23,000 per sq ft. The average capital and rental values of the prime residential market increased by 2 - 9% QoQ. However, as buyer sentiment remained subdued in response to the prevailing high mortgage rates, the capital values of midrange properties remained stable during the quarter.
25,000 38,000 34,000 30,000 INR per sq.ft. 26,000 22,000 18,000 14,000 10,000 6,000 2,000 Anna Nagar Nungambakkam Sholinganallur Adyar 3Q2013F Alwarpet / R A Puram Siruseri/ Kazipattur 1Q2014F
T Nagar Adyar Anna Nagar
CHENNai

Boat Club

3Q 2013
75
Siruseri/ Kazipattur
4Q 2013F
60 45
Nungambakkam
Sholinganallur
30
Anna Nagar
15 0
Velachery
Micro Market Velachery Sholinganallur Siruseri/ Kazipattur Kelambakkam Ongoing Price (P.S.F) 5,000 - 7,000 3,500 - 4,200 3,000 - 4,000 3,000 - 4,000
Alwarpet / R A Puram T Nagar
Beasant Nagar
The State Government imposed an additional charge of 2% on registration and made it mandatory that construction agreements signed between builders and buyers be registered. Currently, the buyer of a new apartment that is under construction must pay 8% (5% stamp duty, 2% surcharge and 1% registration fee) to register the property. COLLIERS VIEW: Adequate growth has been observed in the premium residential market over the last few quarters. Considering the upright demand from end users and investors, capital and rental values are expected to increase by 2 - 5% in the near term.
21,000
17,000
13,000 INR Per sq.ft.
9,000
5,000
1,000 1Q2008 3Q2008 1Q2009 3Q2009 3Q2010 3Q2011 1Q2012 3Q2012 1Q2010 3Q2014F 1Q2011 1Q2013F
Boat Club Sholinganallur Siruseri/ Kazipattur Velachery
Alwarpet / R A Puram Beasant Nagar Nugambakkam

Imperia Ingai Lalique Navarathina Republic Whiteberry LOCaTiON Nungambakkam Poonamallee R.A.Puram Ambattur Kovur Moolakadai DEvElOPER NaME Adroit Urban Developers Vasavi Housing & Infrastructure ETA Star Property Developers Barath Building Construction Akshaya Homes Navin Housing & Properties TENTaTivE POSSESSiON* 4Q 2014 4Q 2015 4Q 2015 4Q 2015 4Q 2016 4Q 2015 RaTE (PER Sq.FT.)** 23,000 3,950 18,500 4,200 4,250 4,900
Velachery
Adyar
Beasant Nagar
Boat Club
T Nagar
P. 7
INDIA | NOVEMBER 2013 | RESIDENTIAL BENGALURU (BANGALORE)

32,000

28,000 24,000 INR per sq.ft. 20,000 16,000 12,000 8,000 4,000 0 Indiranagar Jayanagar Palace Orchard Koramangala Cooke Town Central Airport Road
The Bengaluru residential market recorded increased transaction volumes in both primary and secondary markets. High demand has been observed in the mid-segment residential projects from the IT/ITeS workforce. The micro-markets, which attracted significant interest from buyers were Outer Ring Road (ORR), Whitefield, Jakkur and Koramangala. A few national-level developers such as Puravankara Projects Ltd, Nitesh Estates, Sobha Developers, Raffles Residency, Unishire and LGCL. Developers launched their new projects in micro-markets like Sarjapur, Whitefield, Kanakapura, Thanisandra and Yemalur. Projects were launched in the price range of INR4,000 to 8,000 per sq ft. Capital values witnessed an increase in the range of 3 - 10% QoQ in select precincts of Jayanagar, Bannerghatta Road and Yelahanka, while capital values in all other micro-markets remained stable. Rental values remained stable in almost all micro-markets barring Cooke Town, Jayanagar and Yelahanka where rental values have increased in the range of 6 - 7% QoQ. The Karnataka Stamps and Registration Department has increased the guideline value for properties in the Bangalore Urban, Bangalore Rural and Ramanagara Districts. The guideline values have been revised to the tune of 40 - 100% in selected areas. COLLIERS VIEW: Going forward, we expect capital values in both the primary and secondary sales markets to remain stable considering the huge supply in the pipeline and the continuous addition of new projects. The IT/ITeS sector will remain the primary demand generator for mid-range residential properties.
Whitefield
Bannerghatta Road
Airport Road
bENgaluRu

80
Yelahanka Central Cooke Town

3Q 2013
4Q 2013F
60 40
INR per sq.ft. per month Whitefield (Appts) Jayanagar
20 0
Koramangala
Palace Orchard
Micro Market Airport Road Bannerghatta Road Whitefield Yelahanka Ongoing Price (P.S.F) 5,000 - 7,000 4,200 - 6,000 4,400 - 6,000 3,500 - 5,000
Bannerghatta Road Indiranagar
Airport Road

25,000
20,000
INR Per sq.ft.
15,000
10,000
5,000
3Q2010
3Q2011
1Q2014F
Central Indiranagar Yelahanka Koramangala
Cooke Town Airport Road Whitefield
Jayanagar Bannerghatta Road Palace Orchard

Purva Skydale Unishire Terraza Pueblo Raffles Park Nitesh British Columbia Sobha Paldium LOCaTiON Sarjapur Road Thanisandra Road Off Sarjapura Road Whitefield Kanakapura Road Yemalur Road DEvElOPER NaME Puravanakara Ltd. Unishire Projects Lalith Gangadhar Constructions Raffles Residency Nitesh Estates Sobha Developers TENTaTivE POSSESSiON* 4Q 2016 4Q 2016 4Q 2016 4Q 2015 4Q 2016 4Q 2016 RaTE (PER Sq.FT.)** 5,200 4,300 7,500 7,500 3,900 8,210
P. 8
3Q2014F
1Q2012
3Q2008
1Q2008
3Q2009
3Q2012
1Q2009
1Q2010
1Q2011
3Q2013
1Q2013
Yelahanka
INDIA | NOVEMBER 2013 | RESIDENTIAL KOlKata

During 3Q 2013, micro-markets like Dum Dum, Sonarpur, Rajarhat, Behala and Regent Park remain more active in terms of absorption in both primary and secondary markets. Various developers offered discounts in the range of 5 - 9% on the basic sales price to lure customers during the festive season. Numerous new launches were witnessed in micro-markets like Rajarhat, Barrackpore, Khardah, Baruipur and D H Road, where developers like Apni Dharti Developers, Shapoorji Paloonji, Siddha Group, Vibgyor Group and Merlin Group launched their residential projects in the price range of INR2,165 - 4,150 per sq ft. This quarter saw the completion of few residential projects / parts of projects in micromarkets like Narendrapur and Rajarhat. Despite new launches and fair absorption, capital values for the prime residential properties remained stable across all micromarkets. However, rents rose by 4 - 9% QoQ in micro-markets like Tollygunge, Behela, Ballygunge, Salt Lake, EM Bypass, VIP Road and New Town Rajarhat. The Centre has approved the master plan presented by the West Bengal state government to develop Rajarhat New Town as a solar city. The master plan proposes an investment of INR 400 cr; has been prepared to reduce the projected energy demand from conventional power. COlliERS ViEw: Demand in the Kolkata market is primarily driven by the mid- segment; due to this, capital values in the middle and affordable segments are likely to see marginal appreciation. A number of developers are planning to develop premium properties in prime locations of south central Kolkata.
21,000 19,000 17,000 INR per sq.ft. 15,000 13,000 11,000 9,000 7,000 5,000 3,000 1,000 Bhawanipur Loudon Street Tollygunge New Town -Rajarhat PA Shah Road Salt Lake VIP Road EM Bypass Ballygunge Alipore Behela 1Q2014F
KOlKaTa

Bhawanipur New Town Rajarhat

3Q 2013
50 40 30
PA Shah Road
4Q 2013F
VIP Road
20 10 0
Tollygunge
EM Bypass
Alipore
Micro Market Tollygunge Behela Salt Lake EM Bypass New Town -Rajarhat Ongoing Price (P.S.F) 3,600 - 4,800 2,900 - 3,700 4,000 - 6,000 4,000 - 7,000 3,200 - 4,600
Salt Lake
Behela
Ballygunge
Loudon Street

18,000 16,000 14,000 12,000 INR Per sq.ft. 10,000 8,000 6,000 4,000 2,000 0 1Q2008 3Q2008 1Q2009 3Q2009 1Q2011 1Q2010 3Q2010 3Q2011 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F
Bhawanipur Behela EM Bypass Ballygunge
Alipore VIP Road Salt Lake Loudon street
Tollygunge P A Shah Road New Town - Rajarhat

Merlin Crest Happy Villa Siddha Water Front North City Sukhobristi Phase III Swarnalata LOCaTiON D H Road Rajarhat Khardah Barrackpore Rajarhat Baruipur DEvElOPER NaME Merlin Group Siddha Group Siddha Group Vibgyor Group Shapoorji Paloonji Apni Dharti Developers TENTaTivE POSSESSiON* 4Q 2016 4Q 2016 4Q 2016 4Q 2015 4Q 2015 2Q 2016 RaTE (PER Sq.FT.)** 4,150 3,000 2,300 2,615 3,375 2,165
P. 9
INDIA | NOVEMBER 2013 | RESIDENTIAL PUNE

In 3Q 2013, fewer new residential projects and new phases of on-going projects were launched in Pune due to subdued demand. Most of the developments are mainly located in areas such as Kalyani Nagar, Wakad, Kharadi, Hinjewadi, Wagholi and Pimpri. New launches were priced, on average, from INR 3,600 to 5,500 per sq ft, and INR 8,500 to 13,000 per sq ft for premium projects, which are scheduled to be completed after 2016. During 3Q, capital values in Pune registered a slight increase in the eastern and western blocks primarily in mid-segment projects; however, average capital values have remained almost unchanged in the main micro-markets. Parallel to capital prices, rental values have marked a slight increase in main residential hubs including central areas of Boat Club Road, Camp and Deccan, as well as eastern suburbs, such as Magarpatta, Hadapsar, and western areas namely Baner, Hinjewadi, Pashan and Wakad. In this quarter, the National Green Tribunal has approved the on-going construction of a 2.35-km road from Vithalwadi to the NH-4 bypass with a reduction in the width of the road from the proposed 30 m to 24 m and elevating it in the blue line area. In addition, the central government has approved a proposal to facilitate smooth transfer of government land for speedy execution of metro projects across the country. COLLIERS VIEW: Although a general slowdown has been registered this year, with the onset of the festive period, developers are upbeat about the sales prospects in the upcoming quarter. New project launches will be lesser than in the previous year. Rents and capital values are likely to remain stable across micro-markets.
Castel Royale Excellente Elite Silverio Riviera Valentina Rohan Kritika Sky Line Water Bay LOCaTiON Bhosale Nagar Chikali-Moshi Baner Sinhagad Road Wakad Kalyani Nagar DEvElOPER NaME ABIL Group Elite Landmarks Skywards Developers Right Choice Builders Adi Group Brahma Corporation TENTaTivE POSSESSiON* 2Q 2016 4Q 2015 4Q 2015 4Q 2015 4Q 2014 4Q 2016 RaTE (PER Sq.FT.)** 6,000 3,750 8,500 8,600 5,100 5,200
INR per sq.ft. per month 15,000 13,000 11,000 9,000
INR per sq.ft.
7,000 5,000 3,000 1,000 Kalyani Nagar/Viman Nagar/Kharadi Bhawanipur NIBM/Undri/Kondhwa Magarpatta/Hadapsar Baner/Hinjewadi/ Wakad/Pashan Pimpri/Chinchwad/ Chakan Magarpatta/ Hadapsar 1Q2014F 3Q2014F 3Q2012 Kothrud/Bavdhan/ Wajre Deccan/Camp/ Boat Club
PuNE

Kalyani Nagar/Viman Nagar/ Kharadi Bhawanipur

3Q 2013
30 25
Pimpri/Chinchwad/ Chakan
4Q 2013F
20 15 10 5 0
Deccan/Camp /Boat Club
NIBM/Undri/ Kondhwa
Micro Market Kalyani Nagar/Viman Nagar/Kharadi Baner/Hinjewadi/Wakad/ Pashan Kothrud/Bavdhan/Wajre NIBM/Undri/Kondhwa Pimpri/Chinchwad/Chakan Ongoing Price (P.S.F) 5,000 - 12,000 3,800 - 6,000 3,800 - 6,000 3,800 - 5,000 3,000 - 4,500
Kothrud/ Bavdhan/ Wajre
Baner/Hinjewadi/Wakad/Pashan

11,000 10,000 9,000 8,000 INR Per sq.ft. 7,000 6,000 5,000 4,000 3,000 2,000 3Q2009 1Q2009 3Q2010 1Q2012 3Q2012 1Q2010 3Q2011 1Q2013 1Q2011
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
P. 10
INDIA | NOVEMBER 2013 | RESIDENTIAL
Residential SUBMARKETS
Mumbai The 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 The 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. Gurgaon The 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. NOIDA NOIDA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and Taj Express Highway. Chennai The 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. Kolkata The 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.
CITY BAROMETERS
Increasing as compared to previous quarter Decreasing as compared to previous quarter Remained stable from previous quarter
P. 11
INDIA | NOVEMBER 2013

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 Poonam.mahtani@colliers.com Tel: +91 22 4050 4551 Mumbai : Raghavendra Prabhu, Office Director Raghavendra.prabhu@colliers.com 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 Ajay.rakheja@colliers.com 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 Goutam.chakraborthy@colliers.com 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 Suresh.castellino@colliers.com 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 Kaushik.reddy@colliers.com 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 Soumya.mukherjee@colliers.com 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 Recent Reports :
GLOBAL RETAIL INDIA OFFICE INDIA RESIDENTIAL APAC OFFICE GLOBAL INDUSTRIAL BENGALURU RESIDENTIAL MARKET
REAL ESTATE
COLLIERS INTERNATIONAL INDIA RESEARCH
482 offices in 62 countries on 6 continents United States: 140 Canada: 42 Latin America: 20 Asia Pacific: 195 EMEA: 85 $2.0 billion in annual revenue 1.1 billion square feet under management Over 13,500 + professionals
AUTHORS
Amit Oberoi MRICS National Director, Valuation & Advisory; Research Email: Amit.oberoi@colliers.com Surabhi Arora MRICS Associate Director, Research Email: Surabhi.arora@colliers.com Sachin Sharma Assistant Manager, Research Email: Sachin.sharma@colliers.com Heliana Mano Assistant Manager, Research Email: Heliana.mano@colliers.com For general queries and feedback : India.Research@colliers.com 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.
PUNE RESIDENTIAL MARKET

REAL ESTATE
Colliers International India Research
Global | Retail | 2013 HIGHLIGHTS
Global | Industrial | Midyear 2013 HIGHLIGHTS
BENGALURU RESIDENTIAL MARKET HEATS UP

Global Top 10 Industrial Warehouse Rents*
LONDON (HEATHROW) HONG KONG SINGAPORE TOKYO OSLO GENEVA PARIS HELSINKI MINSK SYDNEY
PUNE RESIDENTIAL MARKET

LUXURIOUS YET AFFORDABLE
une is a classic example of the real estate market Collierss Pick: The areas that will witness where commercial maximum uptake would be those having activities lead the commercial or industrial activities such as residential development Hinjewadi, Magarpatta, Viman Nagar, Kharadi, in the city. Pune has a large Wagholi, Chakan, Pimpri, Bavdhan, Warje & manufacturing base, with many Talegaon. manufacturing as well as automobile companies having large plants. In last one decade the city has also city also attracts students who are the city has seen considerable emerged as a prominent IT/ITeS appreciation in property values. destination. Residential demand compelled by the citys offering of The government is also actively in the city is mostly from the large quality education. A large share of the upcoming participating in the economic population of working professionals growth of the city by undertaking premium residential space in and the older generation retired various infrastructure projects such from the mid-management cadre Pune is in the form of township as Pune Metro, Bus Rapid Transit from Mumbai who find this place developments, the majority of which (BRT) and High Capacity Bus Route. attractive due to affordability, peace is concentrated in and around the IT and industrial hubs. In the past, and proximity to Mumbai. The
Tourists and Brands Flock to High Streets

> Slower economic growth in China did not make a lasting dent on
tourist spending in Hong Kong. Retail sales have rebounded from the lows of Q3 2012. The latest figures from the Hong Kong Tourism Board show that Hong Kong received a total of 12.5 million inbound visitors during the three-month period ending May 2013, an 11.8% year-over-year increase. Nine million of those visitors were from Mainland China.
Trade Flows Bolster Industrial Demand in Asia and the Americas

Top Ten Global Retail Rents USD/SqFt/Year
$3,052 $2,087 $1,994 $1,325 $1,223 $1,114 $930 $871 $836 $834 New York, NY, Fifth Avenue Hong Kong, Queens Road Central Hong Kong, Canton Rd, Tsim Sha Tsui New York, NY, Madison Avenue London, Old Bond Street Hong Kong, Causeway Bay Zurich, Bahnhofstrasse Sydney, Pitt Street Mall Milan, Via Monte Napoleone Paris, Champs lyses
21.95 21.83 21.02 20.61 20.04 16.20 14.70 14.70 13.23 13.23
> 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%. Canadas vacancy rate stands at 4.13%.
> Combined with the arrival of international brands such as Apple,

Zara, and Topshop, in addition to luxury brands expanding their presence, the Australian CBD is once again a popular shopping destination. Pitt Street Mall in Sydney was ranked the 8th most expensive in Colliers High Street survey.
> 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%.
6-Month Change in Rent**
> While occupier demand for industrial property in Brazil remains strong,
> Demand for flagship space in London continues to exceed supply,

driven largely from international retailers seeking a share of the spoils. This is leading to some notable rental growth in the West Ends core locations, with Regent Street witnessing double digit annual rental growth.
> So Paulo and Rio de Janeiro remain leaders in shopping quality

and diversity, achieving the most expensive rents and the focus of growth for luxury brands. Brazils High Street rents are the most costly in Latin America. So Paulos luxury shopping street Rua Oscar Freire saw a 15% growth in asking rents over the previous year. Rua Garcia DAvila in Rio de Janeiro saw rents grow by 6.7%.
OFFICE PROPERTY MARKET OVERVIEW

INDIA
QUARTERLY UPDATE | OCTOBER | 2013
All Rents in USD * Exchange Rate as of March 31, 2013
Residential Property Market Overview

INDIA
QUARTERLY UPDATE | AUGUST | 2013
the market now appears to have stabilized into a more rational mode of sustained growth. So Paulo has seen positive net absorption, in spite of the final tally in 2012 showing a 23% decrease over the previous year.
12.5% 11.1%
> Demand for Beijings 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. Shanghais industrial sector remained stable, with average asking rents for ground floor premises of high quality facilities in both the logistics and workshop sectors unchanged.
LEGEND
> Most U.S. high street rents grew over last year. In New York, Fifth
Avenue rents grew by 11 percent. At $3,052 per square foot, Fifth Avenue rents are the most expensive in the world. On Las Vegas Boulevard, asking rents grew by 25 percent. Philadelphias Walnut Street showed the biggest gains in the U.S., with 33.8 percent growth.
ASIA PACIFIC OFFICE MARKET OVERVIEW

1Q 2013
EMEA APAC
> 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.
3.9%
PARIS
2.2%
HELSINKI GENEVA TOKYO HONG KONG LONDON - (HEATHROW)
> 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.
MIN
SK
OSL
SIN
GAP ORE
SYD
NEY
ver the last two decades, Bengaluru has cemented its position as the leading IT/ITeS. destination amongst top Indian cities. In 2012, Bengaluru commanded a 30% market-share of all of the commercial (office) real estate absorbed across the top seven cities (Delhi NCR, Mumbai, Pune, Chennai, Hyderabad and Kolkata). Bengalurus commercial absorption share was greater than Mumbai and Delhi NCR. The increase in jobs has been the primary growth-driver for residential real estate. The citys population is expected to exceed 12 million by 2020, as compared to 8.5 million in 2011. Now of course the city is experiencing a surge in investors buying real estate. In spite of increasing prices, the city still is comparatively affordable compared to other major cities such as Mumbai and Delhi. With its higher rental yields and favourable currency exchange rates, Bengaluru is emerging as one of the most promising markets in the country for Residential investment. Moreover, the professional approach of developers is also providing much needed comfort to investors as well as end users. Considering the demand potential, it is not only Bengaluru-based developers that are investing, but many national level developers are also entering in this market. The government is also actively participating in the
Colliers Picks: The latest Colliers International research unvails top investment destination in Bengaluru (Bangalore)
commercial developments are most Kharadi & Wagholi in East, Baner, Hinjewadi, Wakad & Pashan, Kothrud, attractive. Pune witnesses multiBavdhan & Wajre in west and Undri & directional growth of residential For investment purpose, the new projects in various locations such Kondhwa in the South. residential developments located as Pimpri, Chinchwad, Chakan & in peripheral areas alongside the Talegaon in North Viman Nagar Markets to witness residential real estate growth
Upcoming Infrastructure Driving Citys Growth
Ofce Absorption in Million sq ft among major 7 cities in India
Factors Driving Growth Favorable exchange rate (INR/USD) 1 $ = INR 56.45

Rising per capita income reflects in demand for houses Gradual shift in the demographic profile with more service professionals with higher income range Falling Rupee making NRI investments more lucrative High commercial absorption indicates sustained demand growth Source: Maharashtra Economic Survey, RBI, Colliers International India Research
* December 2013 Rent (USD/PSF/YR) ** Local currency
58
THE INTERNATIONAL INDIAN July - August 2013
56
THE INTERNATIONAL INDIAN
THE INTERNATIONAL INDIAN
57
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Residential Property Market Overview

INDIA | NOVEMBER 2013 | RESIDENTIAL

RESEaRCH INDia RESIDENTIAL & FORECaST MaRKET REPORT

ResearcH SYDNEY CENTRAL & FOrecast BUSINESS rePOrt DISTRICT

MACRO ECONOMIC OVERVIEW

8.00% 7.00% 4.25% 7.32% 10.00%

Return On AlternatiVe InVestments

30,922 59,853 8.50% 18,714 1,879

30,063 45,917 9.00% 20,548 1,328

-2.78% -23.28% 5.58% 9.80% -29.33%

7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0

Cash Reserve Ratio

Wholesale Price Index

Source: Goverment of India, Colliers International India Research

INDIA | NOVEMBER 2013 | RESIDENTIAL MUMBAI

AVERAGE CAPITAL VALUE RANGE

AVERAGE RENTAL VALUE

CITY RESIDENTIAL BAROMETER

Breach Candy, Napeansea Road, Peddar Road

INR per sq.ft. per month

AVERAGE CAPITAL VALUE TRENDS

Powai Khar Prabhadevi Breach Candy, Napeansea Road, Peddar Road

SELECT NEW PROJECTS PROjECT NaME

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

INDIA | NOVEMBER 2013 | RESIDENTIAL delHI

AVERAGE CAPITAL VALUE RANGE

Golf Links, Jor Bagh, Sunder Nagar

Panchashila, Anandlok, Niti Bagh, SDA 1Q2013

Shanti Niketan, Westend

Prithviraj Road, Aurangzeb Road

Friends Colony, Maharani Bagh

CITY RESIDENTIAL BAROMETER

AVERAGE RENTAL VALUE

Anand Niketan, Vasant Vihar

Greater Kailash I & II, South Extension

Golf Links, Jor Bagh, Sunder Nagar

Friends Colony, Maharani Bagh Panchashila, Anandlok, Niti Bagh, SDA

Shanti Niketan, Westend

AVERAGE CAPITAL VALUE TRENDS

Greater Kailash I & II, South Extension 3Q2014F

SELECT ONGOING PROJECTS PROjECT NaME

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

INDIA | NOVEMBER 2013 | RESIDENTIAL GURGAON

AVERAGE CAPITAL VALUE RANGE

Golf Course Road

Sohna Road & Ext

AVERAGE RENTAL VALUE

CITY RESIDENTIAL BAROMETER

INR per sq.ft. per month

Sohna Road & Ext

AVERAGE CAPITAL VALUE TRENDS

INR Per sq.ft.

NH-8 Golf Course Road

Sohna Road & Ext Sushant Lok

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

INDIA | NOVEMBER 2013 | RESIDENTIAL nOida

AVERAGE CAPITAL VALUE RANGE

Sector 61, 62., 63

AVERAGE RENTAL VALUE

CITY RESIDENTIAL BAROMETER

INR per sq.ft. per month

Sector 61, 62., 63

AVERAGE CAPITAL VALUE TRENDS

Sector 61,62,63 Sector 92 / 93