CB Property Insights Q4 2013

PROPERTY INSIGHTS
India Quarter 4, 2013
Sluggish Market, Slightly Positive Outlook

INDIA MARKET OVERVIEW
The Indian economy registered a growth of 4.8% during July-September 2013, recording a slight improvement over the previous quarters growth rate of 4.4%. The improvement in quarterly growth can be primarily attributed to improved performance of the agriculture, forestry and fishing sector, which registered a growth of 4.6%. This was due to the good crop production witnessed during the Kharif season. Other economic activities that registered significant growth during the quarter included electricity, gas and water supply at 7.7%, construction at 4.3%, financing, insurance, real estate and business services at 10% and community, social and personal services at 4.2%. The manufacturing sector showed minor signs of recovery, while other sectors such as mining and quarrying and trade, hotels, transport and communication registered a slowdown in performance compared to the same period last year. Growth in exports over the past few months also aided improvement in GDP growth during the quarter. The GDP growth rate for H1 2013-14 stood at 4.6%, compared to 5.3% during the same period last year. The Reserve Bank of India (RBI) lowered its growth forecast from 5.7% to 4.8% for 2013-14 in October 2013, citing downside risks from domestic factors like weakening consumption and investment demand. This followed the earlier downside revisions
Source: Central Statistical Organisation, Govt. of India
Growth Rate (%)
GROSS DOMESTIC PRODUCT GROWTH RATE
by Prime Ministers Economic Advisory Council (PMEAC), Asian Development Bank (ADB) and International Monetary Fund (IMF). The Current Account Deficit (CAD) narrowed marginally during the quarter, due to decline in oil and non-oil imports and improvement in exports. However, wholesale and retail inflation soared to 7.52% and 11.74%, respectively by November and added to the woes of the RBI. Considering the macro-economic scenario, although the RBI raised the repo rate initially by 25 basis points to 7.75% in October 2013, the Central Bank maintained it at the same level during December 2013. Further, the RBI cited the need to adopt a waitand-watch approach to gain more clarity on performance of various factors, considering the time lag with which monetary policies affect growth. However, the RBI stated that it will remain vigilant of
the performance of external markets, and will act even on off-policy dates, if required. The last quarter of the year witnessed certain signs of improvement in the economy, as growth picked-up and some sectors performed better. The office space across top eight cities recorded total net absorption of 6.7 million square feet (msf), registering a 23% quarter-on-quarter (q-o-q) increase. The total leasing activity for the same period was higher at nearly 9.6 msf as over 30% of the transactions comprised of relocations and/or consolidations by occupiers. NCR and Bengaluru topped the charts, recording 1.8 and 1.5 msf of total net absorption respectively during 4Q 2013. Mumbai ranked third, recording a net absorption of 1.1 msf. The overall q-o-q supply increase was nearly 54% at 10.2 msf with NCR,
Hyderabad and Bengaluru contributing 4.0, 2.2 and 1.2 msf of the supply, respectively. Residential markets continued to reel under the effect of cautious sentiment prevailing amongst the stakeholders; launch activity declined by 11% on a q-oq basis and capital and rental values remained stable in all cities. The only exceptions included Bengaluru, which registered 10-25% q-o-q rental appreciation in certain parts of the city. High-end capital values witnessed appreciation upto 12-13% in select areas of Bengaluru and Chennai. Mid-end capital values in Bengaluru and Hyderabad also recorded a positive trend during the quarter. Thus, the residential markets and its stakeholders mostly exhibited a wait-andwatch approach during the quarter with a hope of revival in activity during the coming year.
Trends & Updates

Economic Trends
The general Consumer Price Index (CPI) rose to 11.74% in November 2013, driven by substantial categories. Wholesale Price Index (WPI) also rose significantly to 7.52% in November 2013, rising from 5.16% in June 2013. The WPI and CPI for 2Q 2013-14 were recorded at 7.0% and 10.1%, respectively. As retail inflation surpassed double digits and WPI inflation continued its upswing, the RBI in its monetary policy review in December stated that food prices are likely to ease due to the better supply hitting
INDEX Source: RBI INR/USD
EXCHANGE RATE MOVEMENT (INR/USD)
increases in food prices, non-food and non-fuel
BSE REALTY INDEX

4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
the markets post the monsoons. Consequently, it maintained a neutral stance on policy matters, citing the requirement to witness the impact of monetary tightening and an anticipated drop in food prices. The Indian economy registered a GDP growth of 4.8% in July-September 2013 as compared to 5.2% growth recorded during the same period last year. However, the economy showed minor signs of June 2013 quarter, driven mainly by the improvement in agricultural sector due to good Kharif crop season and recovering exports. The decline in oil and non-oil imports, along with an increase in exports brought
*
Source: BSE
FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR
Top eight cities include NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad Source: Dept. of Industrial Policy & Promotion, Govt. of India
INR Crore
recovery from 4.4% growth registered in the April-
some respite to the Current Account Deficit (CAD), which moderated to 1.2% of GDP after soaring to 4.9% during April-June 2013. The Rupee stabilized at INR 6163 against the US Dollar over the past three to four months. The RBI stated that over this period, the inflows in swap windows had contributed significantly to rebuilding foreign exchange reserves, which would help the Indian currency stabilize in the foreign exchange market and build resilience against external factors such as the looming US Federal Reserve tapering. However, a very high inflation could also add to the risk of exchange rate volatility. RBIs stance of maintaining the repo rate, improvement in GDP, along with stabilization of the Indian Rupee, led to a recovery in the Bombay Stock Exchanges (BSE) Realty Index to 1,475.45 points on 27
December 2013, almost four months after it bottomed to a 52-week low of 1,126.84 points on 28 August, 2013. It increased by nearly 22.5% during the quarter, to close at 1,433.41 points by December end. India witnessed total FDI inflows of INR 373,860 million in 2Q 2013-14 (July-September). The FDI inflows increased by 24.5% from the previous quarter with highest contribution of nearly 9% from the Construction Development sector. In 2Q 2013-14, the Construction Development sector recorded FDI inflows of INR 32,100 million, the highest inflow in the last sixteen quarters. The increase in FDI inflows to the sector during the quarter indicates an improvement in the market sentiment and gradual pick-up in the market activity.
Residential Trends
Residential capital values remained stable across segments in Ahmedabad, Kolkata, Mumbai and Pune during the quarter. However, some sub-markets in the two southern cities of Bengaluru and Chennai registered capital appreciation in high-end segment during the quarter. Bengaluru registered 3-12% q-oq capital appreciation, while Chennai registered an increase of 4-13%. Adyar in Chennai registered a 13% rise in high-end capital values during the
Source: Cushman & Wakefield Research
RESIDENTIAL CAPITAL VALUES GROWTH INDEX
quarter, due to inherent demand for such properties in the micro-market and infusion of new supply at higher price points. The off-central locations in Bengaluru comprising of areas like Benson Town, Frazer Town, Richard Towns and Dollar Colony registered highest q-o-q capital appreciation of 12% in the high-end segment. Noida in NCR registered a minor correction of 1% in the high-end capital values. In mid-end segment capital values, Bengaluru witnessed an uptrend of 3-13% across submarkets during the quarter. Madhapur, Gachibowli and Kukatpally areas of Hyderabad also witnessed a 3% q-o-q appreciation in the mid-end segment, due to relatively better demand for these locations considering their proximity to IT and financial hubs of the city. Rental values remained almost stable in all cities except Bengaluru. Select submarkets of Bengaluru recorded 10-25% capital Approximately 38,900 units were launched in 4Q 2013 across the top eight cities of India. The total unit launches declined by 11% q-o-q and 12% y-o-y. appreciation in mid and high-end rentals due to limited availabilities in these areas, coupled with their connectivity to prominent workplaces.
Source: Cushman & Wakefield Research
NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 4Q 2013
Ahmedabad recorded a q-o-q increase of 18% in number of units launched, mainly due to the launch of second phase of a large township in a peripheral location. Bengaluru and Kolkata also recorded 5% and 6% increases respectively in number of units launched during the quarter. Bengaluru witnessed over 13,800 unit launches during the quarter, contributing to nearly 36% of the total launch activity across top eight cities. It was followed by NCR and Mumbai contributing to 20% and 14% of the launches respectively. Pune saw a stable trend in number of launches during the quarter and contributed to 10% of the launches in top eight cities. Hyderabad witnessed less than 750 units
being launched in 4Q 2013, with a q-o-q decline of 61% in the launch activity. It was followed by Chennai registering a 38% decline in q-o-q launches. The residential markets are likely to witness stability in rental and capital values during the next few months with a gradual pick-up in the launch activity, despite subdued demand and cautious sentiment amongst buyers. Whilst capital values and rentals are largely expected to remain stable, prime micromarkets may see marginal uptrend whilst emerging and peripheral locations with substantial supply in the pipelines may see some corrections.
Index
Ahmedabad................................................................................... Bengaluru...................................................................................... 6 9
Chandigarh.................................................................................... 14 Chennai.......................................................................................... 17 Hyderabad..................................................................................... 21 Jaipur........................................................................................... 25
Kolkata........................................................................................... 28 Mumbai.......................................................................................... 33 National Capital Region.............................................................. 37 Pune............................................................................................... 41
Ahmedabad
Market Overview
During 4Q 2013, Ahmedabad witnessed approximately 2,500 units launched, an increase of 18% from the previous quarter. The increase was primarily due to the launch of an additional phase (consisting of 2,300 units) of a large township project along S.G. Highway. As a result, launches during the quarter continued to be concentrated along S.G. Highway (97%), catering mainly to the mid-end segment.
Source: Cushman & Wakefield Research Represents Mid and High End segments
READY RESIDENTIAL PROPERTY VALUES IN DECEMBER '13
Ahmedabads office markets witnessed an overall net absorption of 219,400 square feet (sf) during 4Q 2013, which is more than double the previous quarter. Net absorption was concentrated in the submarkets of Prahladnagar (70%) and SarkhejGandhinagar Highway (30%); driven primarily by demand from the Pharmaceuticals, BFSI and the ITITeS sectors. Net absorption for 2013 was recorded at approximately 566,000 sf, a 37% decline compared to 2012, primarily due to subdued demand and limited expansions by various companies. The citys overall vacancy for retail spaces in malls declined 0.2 percentage points over the quarter and was recorded at 28.5%. Given that transaction activity continued to remain low due to limited availability of quality mall spaces, the rentals remained stable across all mall locations in the city. Mall vacancies have steadily declined from 33% in the beginning of 2013 to the current levels.
Trends & Updates

Ready Residential Property Update
Demand for ready residential property remained stable in the city. Prices for ready residential properties also continued to remain stable across all micro-markets in the mid and high-end segments. End-users preferred emerging locations on the S.G. Highway, Bopal, Naroda, Motera and Ranip over other established destinations in the city due to their lower ticket sizes ranging from INR 20 lakhs to 40 lakhs.
Average Capital Values High End (INR '000/sf) Location Satellite Vastrapur S.G.Highway Prahlad Nagar 2010 4.0 - 4.8 3.7 - 4.0 3.7 - 4.3 4.2 - 5.3 2011 4.3 - 6.0 3.7 - 5.0 3.7 - 4.5 4.2 - 6.0 2012 4.3 - 6.0 3.7 - 5.0 3.7 - 4.5 4.2 - 6.0 1Q 2013 4.3 - 6.0 3.7 - 5.0 3.7 - 4.5 4.2 - 6.2 2Q 2013 4.3 - 6.0 3.7 - 5.0 3.7 - 4.5 4.2 - 6.2 3Q 2013 4.3 - 6.0 3.7 - 5.0 3.7 - 4.5 4.2 - 6.2 4Q 2013 4.3 - 6.0 3.7 - 5.0 3.7 - 4.5 4.2 - 6.2
Source: Cushman and Wakefield Research Note: The above values for high-end segment typically include units of 2,000-4,000 sf
Average Capital Values Mid-Segment (INR 000/sf) Location Satellite Vastrapur S.G.Highway Prahlad Nagar 2010 2.8 - 3.8 2.6 - 3.5 3.0 - 3.8 2.8 - 3.6 2011 2.8 - 4.3 2.6 - 3.8 3.3 - 4.3 3.2 - 4.2 2012 2.8 - 4.3 2.6 - 3.8 3.3 - 4.3 3.2 - 4.2 1Q 2013 2.8 - 4.3 2.6 - 3.9 3.3 - 4.3 3.2 - 4.3 2Q 2013 2.8 - 4.3 2.6 - 3.9 3.3 - 4.3 3.2 - 4.3 3Q 2013 2.8 - 4.3 2.6 - 3.9 3.0 - 4.3 3.2 - 4.3 4Q 2013 2.8 - 4.3 2.6 - 3.9 3.0 - 4.3 3.2 - 4.3
Source: Cushman and Wakefield Research Note: The above values for mid-end segment typically include units of 1,200-1,800 sf
New Residential Launches

Ahmedabad witnessed a significant increase in the number of new launches during the fourth quarter with the launch of another phase of Adani Elysium Towers. Approximately 63% of the units
Project Name Adani Elysium Towers Developer Adani Developers
launched were in the 2 BHK configurations, whilst 35% were 3 BHK and the balance were 4 BHK. Most of the new launches were in the vicinity of Vaishnodevi Circle on S.G. Highway.
Type Apartment Area of Units (sf) 2 BHK: 1,140 to 1,400 3 BHK: 1,449 2 BHK: 1,152 3 BHK: 1,449 2 BHK: 1,368 3 BHK: 1,632 to 1,819 4 BHK: 3,340
Location S.G. Highway
Number of Units* 2,300
Swarnim Square
Gopinath Developers Narayankrupa Infra Ratan Infracon
S.G. Highway
80
Apartment
Krupal Heritage
Prahladnagar
72
Apartment
Ratan Paradise
S.G. Highway
60
Apartment
* Estimated and as per market information
Under Construction Residential Property Update

During 4Q 2013, locations in western Ahmedabad like Bopal, South Bopal and Vaishnodevi witnessed healthy construction activity in the affordable and mid-end segments. After a correction of 4-8% during the previous quarter, capital values remained stable during the fourth quarter of 2013. A slowdown in transaction activity continued and developers were seen offering discounts to prospective buyers in order to boost sales.
Commercial Office Sector

After no supply during the last two quarters, the city witnessed a commercial office supply of 915,000 sf in the fourth quarter of 2013. With net absorption remaining low, overall vacancies increased 3.5 percentage points to 17.7% at the end of the quarter. After a correction in the previous quarter, rentals continued to remain stable during the fourth quarter across all submarkets in the city. Overall supply in 2013 continued to remain high despite limited demand and was registered at 1.9 msf, a marginal decline of 6% compared to 2012.
Retail Sector
Limited options of quality retail spaces in main street locations like C.G. Road, Law Garden, Prahladnagar and Satellite Road has resulted in low transaction activity at these locations. As a result, rentals continued to remain stable during 4Q 2013. Enquiries from Food & Beverages (F&B) and apparel segments remained high in the city, but the actual transactions remained limited. Preference for mainstreet locations like Prahladnagar and S.G. Highway, which are in proximity to commercial office locations, remained high among retailers, primarily from the F&B segment.
Outlook
The quantum of residential unit launches is expected to remain low until the new Development Control Rules come into effect. The new regulations will provide higher FSI and incentives to affordable housing projects, which will lead to overall increase in residential supply during the next year. Moderate demand and high level of unsold inventory is likely to keep a downward pressure on capital values. Approximately 700,000 sf of Grade A space is expected to become operational at Prahladnagar and Motera during the first quarter of 2014. Overall city-level vacancy is likely to increase with low precommitment levels in these developments, which could result in additional pressure on rental values across the city. Healthy enquiries by retailers for main-street locations like C.G. Road, Prahladnagar and Law Garden coupled with low availabilities could result in striking new transactions at high rentals. The existing high vacancy levels in malls will keep rentals under pressure, especially at locations like S.G. Highway. However, the current low vacancy levels in malls at Vastrapur and the upcoming lease renewals are likely to result in increased enquiries from established retailers vying for space in Vastrapur malls. Considering the low preference for malls amongst shoppers, no new mall is currently underconstruction in the city.
Bengaluru
Market Overview
Continuing with the momentum of previous quarters, Bengalurus residential market witnessed new launches of around 13,800 units in 4Q 2013, a q-oq increase of 5%. Similar to previous quarters, most launches (57%) belonged to the mid-end category with the Southern submarket witnessing maximum new launches (58%). The eastern submarket accounted for 30% of the total new launches during this quarter. While connectivity and proximity to IT
hubs was the key reason for healthy residential activity in these locations, existing robust support infrastructure was also instrumental in aiding the demand. Amidst this, high-end segment capital values in select residential submarkets like Off-Central, North-West and mid-end segment capital values like Central, Off Central* and Far South recorded a notable q-o-q rise in the range of 6-13%. Bengalurus office space market witnessed a supply of nearly 1.2 million square feet (msf) in the last quarter of the year, adding up to a total supply of 5.8 msf for the year 2013. Unlike the previous quarter, this quarter saw no new spaces in SEZs being added to the stock and all the supply belonged to commercial space category only. However, 4Q 2013 recorded a q-o-q drop of 19% in new supply. Owing to deferment of a mall, which was anticipated to become operational in 4Q 2013, Bengalurus retail real estate market did not see any supply during 4Q 2013. The absence of new mall supply led to drop in mall vacancies during this quarter. The city level mall vacancy was recorded at 8.5% approximately, a q-o-q drop of 1.8 percentage points. Apparels and Food & Beverages (F&B) retailers accounted for majority of demand in the malls. Although, rental values for almost all malls remained stable during this quarter, there was a q-o-q rise of 12% in rentals for malls in Malleswaram, primarily due to low availability at this location.
Trends And Updates

Most residential submarkets registered a stable rental trend during this quarter. Nevertheless, select submarkets such as South in high-end segment, South-East in mid-end segment and Off-Central** in mid-end segment saw a q-o-q rental appreciation between 10-25%. Proximity to IT hubs and developed social infrastructure led to stronger preference for locations in these submarkets. In addition to this, limited availability fuelled the rise in rentals for South and Off-Central** locations. The quarter also recorded notable q-o-q capital value increase in the range of 6-13% in high-end locations of Off-Central, North-West and mid-end locations of Central, Off-Central** and Far South. While limited supply governed the uptrend in OffCentral, North-West, Central and Off-Central** submarkets, demand from IT-ITeS employees led to the rise in Far South submarket. Meanwhile, other submarkets like South, North in high-end and SouthEast, South-West, West in mid-end saw an uptrend of 3-5%, owing to inherent demand in these locations. Further, submarkets like East, South-East and North witnessed completion of several projects in 4Q 2013.
9
Average Capital Values High-end (INR000/sf)

Location Central South 2008 14.0 - 18.0 7.0 - 9.0 2009 12.0 - 14.5 6.0 - 8.5 5.0 - 6.8 5.6 - 7.0 5.5 - 7.0 2010 13.5 - 17.5 6.0 - 9.5 5.0 - 7.0 6.5 - 7.5 5.5 - 7.0 2011 14.0 - 18.0 6.5 - 10.0 6.0 - 8.5 6.8 - 8.0 6.5 - 8.0 2012 18.0 - 28.0 6.5 - 10.0 7.0 - 9.0 6.5 - 9.0 6.5 - 8.2 1Q 2013 18.0 - 30.0 6.5 - 10.0 7.0 - 10.0 6.5 - 10.0 6.5 - 9.5 2Q 2013 18.0 - 30.0 6.5 - 10.0 7.0 - 10.0 6.5 - 10.0 6.5 - 9.5 3Q 2013 18.0 - 30.0 6.5 - 10.0 7.0 - 10.0 6.5 - 10.0 6.5 - 9.5 4Q 2013 18.0 - 30.0 6.75 - 10.25 8.0 - 11.0 6.5 - 10.0 7.0 - 9.5
Off-Central 6.5 - 7.5 East North 6.5 - 9.0 6.0 - 8.0
Source: Cushman and Wakefield Research Note: The above values for high-end segment typically include units of 2,000-4,000 sf.
Average Capital Values Mid-Segment (INR000/sf)

Location Central East South-East North South South-West Off-Central* Off-Central** North-West 2008 5.8 - 7.0 2.7 - 3.1 2.9 - 4.0 3.0 - 4.0 5.0 - 6.5 2.8 - 4.2 3.5 - 6.0 4.0 - 6.0 4.2 - 5.8 2009 5.0 - 6.0 2.4 - 2.7 2.5 - 3.2 2.8 - 4.0 4.6 - 5.7 2.7 - 3.9 3.3 - 5.7 3.7 - 5.7 3.5 - 5.2 2010 5.5 - 7.0 2.7 - 3.1 2.8 - 4.0 2.8 - 4.4 4.8 - 6.0 3.2 - 4.5 4.0 - 6.2 3.8 - 6.2 3.8 - 5.6 2011 6.0 - 7.5 3.2 - 3.8 3.4 - 5.0 3.0 - 4.8 5.0 - 6.5 3.6 - 5.0 4.5 - 6.7 4.3 - 6.7 4.3 - 6.2 2012 6.0 - 8.0 3.8 - 4.8 4.0 - 5.5 3.5 - 5.5 6.0 - 9.0 4.0 - 5.5 5.0 - 7.5 5.0 - 7.0 4.5 - 6.5 1Q 2013 6.0 - 8.0 3.8 - 4.8 4.0 - 5.5 3.5 - 5.5 6.0 - 9.0 4.0 - 5.8 5.0 - 8.0 5.0 - 7.0 4.5 - 6.5 2Q 2013 7.0 - 10.0 4.0 - 5.0 4.0 - 5.5 3.5 - 5.5 6.0 - 9.0 4.5 - 6.0 6.0 - 9.0 6.0 - 8.0 5.0 - 6.5 3Q 2013 8.0 - 11.0 4.0 - 5.5 4.5 - 5.5 3.5 - 5.5 6.0 - 9.0 4.5 - 6.0 6.0 - 9.0 6.0 - 8.0 5.5 - 6.5 4Q 2013 9.0 - 12.0 4.0 - 5.5 4.5 - 5.9 3.5 - 5.5 6.0 - 9.0 4.5 - 6.5 7.0 - 10.0 6.0 - 8.0 5.5 - 6.5
Source: Cushman and Wakefield Research Note: The above values for mid-end segment typically include units of 1,600-2,000 sf.
Key to locations:
High-end Segment Central: Lavelle Road, Off Palace Road, Off Cunnigham Road, Ulsoor Road, Richmond Road South: Koramangala, Outer Ring Road, Bannerghatta Road, JP Nagar Off-Central: Frazer Town, Benson Town, Richards Town, Dollars Colony East: Whitefield (villas) North: Hebbal, Yelahanka, Jakkur, Devanahalli East: Marathalli, Whitefield, Old Airport Road South-East: Sarjapur Road, Outer Ring Road, HSR Layout South: Kormangala, Jakkasandra South-West: Jayanagar, J P Nagar, Kanakpura Road, Bannerghatta Road, BTM Layout North: Hebbal, Bellary Road, Yelahanka, Dodballapur Road, Jalahalli Off-Central*: Vasanth Nagar, Richmond Town, Indiranagar Mid-end Segment Central: Brunton Road, Artillery Road, Ali Askar Road, Cunningham Road Off-Central**: Cox Town, Frazer Town, HRBR, Benson Town, etc North-West: Malleshwaram, Rajajinagar
10

The residential real estate market of Bengaluru recorded new launches of over 13,800 units during the last quarter of 2013. The quantum of launches in 4Q 2013, remained in tandem with the previous quarters of this year. Around 57% of the launches belonged to the mid-end category, followed by affordable segment contributing around 22% to the new launches in 4Q 2013. Sarjapur Road, Harlur
Project Name Skylark Ithaca (Phase-I) Developer Skylark Developers Type Apartment Area of Units (in sf) 1 BHK: 592 2 BHK: 999 3 BHK: 1,472 4 BHK: 1,857 1 BHK: 650 2 BHK: 1,145 to 1,170 3 BHK: 1,440 to 1,680 4 BHK: 2,265 1 BHK: 641 to 663 2 BHK: 995 3 BHK: 1,240 to 1,510 2 BHK: 1,250 3 BHK: 1,720 to 2,260 4 BHK: 3,410 1 BHK: 750 2 BHK: 1,050 to 1,400 3 BHK: 1,600 1 BHK: 850 2 BHK: 1,044 3 BHK: 1,525 4 BHK: 2,284 2 BHK: 1,285 to 1,340 3 BHK: 1,585 to 2,150 1 BHK: 720 2 BHK: 915 3 BHK: 1,075 to 1,200 2 BHK: 1,105 3 BHK: 1,390 2 BHK: 1,005 to 1,031 3 BHK: 1,335 to 1,604 2 BHK: 1,210 to 1,225 3 BHK: 1,725 to 1,785 4 BHK: 3,360 2 BHK: 1,195 3 BHK: 1,586 to 1,615 3 BHK: 2,100 4 BHK: 3,960 2 BHK: 1,250 to 1,346 3 BHK: 1,650 to 1,850 3 BHK: 2,800 to 3,125 4 BHK: 4,235 2 BHK: 956 to 1,200 3 BHK: 1,550 2 BHK: 1,591 3 BHK: 1,885 to 2,015 2 BHK: 1,358 3 BHK: 1,937 to 2,375 4 BHK: 2,524
Road, Electronic City, etc. in Southern Bengaluru continued to witness maximum number of launches (58%) followed by locations in the East (mainly Whitefield), which accounted for 30%. Connectivity to major workplaces and presence of developed support infrastructure continued to drive residential real estate activity in these submarkets.
Location Whitefield
SJR Blue Waters
SJR Developers
Hosa Road
1,250
Apartment
Smondo 4.0
Patel Realty
Electronic City
1,012
Apartment
Brigade Cosmopolis
Brigade Group
Whitefield
880
Apartment
Shriram Chirping Woods Monarch Aqua
Shriram Group
Harlur Road
820
Apartment
Monarch Properties
KR Puram
593
Apartment
Sumadhura Silver Ripples Prabhavati Daffodils
Sumadhura Silver Ripples Prabhavati Developers Goyal and Co. Nitesh Estates Golden Gate Properties
Whitefield Off Sarjapur Road
475 445
Apartment Apartment
Orchid Woods Nitesh British Columbia Golden Panorama
Hennur Road Kanakpura Road Kanakpura Road
392 388 363
Apartment Apartment Apartment
Prestige Ivy Terraces Prestige Developers Adarsh Premia Purva Skydale Century Ethos Ajmera Stonepark Sterling Ascentia Prestige Jade Pavillion Adarsh Developers Purvankara Century Group Ajmera Developers Sterling Developers Prestige Developers
330 Outer Ring Road (Sarjapur-Marathahalli) Banshankari Harlur Road Hebbal Electronic City Outer Ring Road (Sarjapur-Marathahalli) Outer Ring Road (Sarjapur-Marathahalli) 330 314 308 280 280 272
Apartment Apartment Apartment Apartment Apartment Apartment Apartment
11
Mahaveer Amaze Bren Paddington Saroj Symphony Concorde Epitome Purva Sunflower Concorde Tech Turf Mahaveer Oleander Atlantis Liberty Square Salarpuria Clarinet Arge Helios Zonasha Vista
Mahaveer Developers Bren Developers Saroj Group Concorde Group Purvankara Developers Concorde Group Mahaveer Developers Atlantis Builders Salarpuria Developers Arge Realty Zonasha Developers
Whitefield Sarjapur Road Whitefield Electronic City Rajajinagar Electronic City Hosa Junction (Off Hosur Road) Kanakpura Road Bannerghatta Road Hennur Road Hennur Road
267 264 212 200 200 168 164 164 161 160 160
Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment
2 BHK: 1,128 3 BHK: 1,349 2 BHK: 1,178 to 1,349 3 BHK: 1,498 to 1,704 2 BHK: 1,065 to 1,200 3 BHK: 1,500 to 1,650 2 BHK: 900 to 1,100 3 BHK: 1,200 to 1,300 2 BHK: 1,216 to 1,408 3 BHK: 1,613 to 1,795 2 BHK: 800 3 BHK: 1,200 2 BHK: 1,118 to 1,156 3 BHK: 1,522 to 1,616 2 BHK: 1,285 to 1,575 3 BHK: 1,765 to 2,075 3 BHK: 1,898 to 2,066 2 BHK: 1,308 to 1,466 3 BHK: 2,068 to 2,357 1 BHK: 780 2 BHK: 1,020 3 BHK: 1,350 2 BHK: 1,131 3 BHK: 1,382 to 1,478 4 BHK: 1,740 2 BHK: 1,220 3 BHK: 1,675 4 BHK: 2,650 2 BHK: 873 3 BHK: 1,113 to 1,227 3 BHK: 2,850 4 BHK: 3,550 2 BHK: 1,150 to 1,250 3 BHK: 1,330 to 1,660 3 BHK: 1,832 to 2,045 3 BHK: 2,259 to 2,546 4 BHK: 3,161 3 BHK: 2,259 to 2,546 4 BHK: 3,161 2 BHK: 1,050 to 1,065 3 BHK: 1,285 to 1,300 1 BHK: 665 2 BHK: 985 to 1,190 3 BHK: 1,465 2 BHK: 1,120 to 1,256 3 BHK: 1,380 to 1,792 2 BHK: 1,051 to 1,182 3 BHK: 1,433 to 1,523 2 BHK: 1,175 3 BHK: 1,500 3 BHK: 1,477 to 2,023 4 BHK: 2,600 2 BHK: 1,165 to 1,235 3 BHK: 1,370 to 1,455 3 BHK: 2,143 to 2,600 5 BHK: 7,830
Wind Fields
Prajanpe Schemes
Off Old Airport Road
154
Apartment
Samruddhi North Square Concorde Wind Rush Shriram Chirping Woods Radiant Elitaire Salarpuria Aspire Another Sky Pushpam Woods JR Nexus Eternity Ecstasy
Samruddhi Group
Yelahanka
148
Apartment
Concorde Group Shriram Group Radiant Developers Salarpuria Developers Living Walls Pushpam Group JR Developers Eternity Structures
Electronic City Harlur Road JP Nagar Hennur Road HRBR Layout Sarjapur Road Chandapura Anekal Road Begur Road
143 138 133 120 117 112 108 100
Apartment Villas Apartment Apartment Apartment Villas Apartment Apartment
Sarvana Esplanade Vineyard Chrystolite Nakshatra Celestia Surya Shakti 80 Trees Sipani Classic Radiant Silver Oak Chaitanya Sharan
Sarvana Buildwell Vineyard Township Nakshatra Developers Surya Shakti Developers Sipani Properties Radiant Developers Chaitanya Developers
Yeshwantpur Hennur Road Yelahanka Off Sarjapur Road Kormangala Begur Road Whitefield
80 72 69 68 54 42 27
Apartment Apartment Apartment Apartment Apartment Villas Villas
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Capital values of under construction residential projects in Southern and Eastern submarkets witnessed a q-o-q appreciation in the range of 5-10% and 4-8%, respectively during 4Q 2013. Healthy demand from employees of the IT-ITeS sector, owing to proximity of workplaces and presence of strong social infrastructure led to northward movement of capital values. Areas like Sarjapur Road, Harlur Road in South, Whitefield in East, Hennur Road and Thanisandara Road in North continued to witness sizeable construction activity. Gopalan Atlantis located in Whitefield and DSR Wood Winds located in Sarjapur are select projects that are nearing completion.

The last quarter of 2013 registered a q-o-q rise of 27% in net absorption, which was recorded to be 1.5 msf. Majority (72%) of the net absorption took place in Grade A properties, reflecting higher preference for quality spaces amongst occupiers. Amidst this, IT-ITeS sector continued to drive majority (80%) of the transaction activity during this quarter. Almost all the net absorption this quarter (98%) took place in peripheral areas such as Outer Ring Road (31%), Whitefield (31%) and Electronic City (36%), primarily due to availability of quality spaces at competitive rentals. The IT-ITeS sector dominated the pre-commitment activity as well with a 76% share in total pre-commitments of approximately 1.1 msf during 4Q 2013. The rental values remained stable for all submarkets as the vacancy levels witnessed a dip of 0.4 percentage points each for all Grade and Grade A properties.
Retail Sector
Most main streets witnessed a stable rental trend in the last quarter of 2013. Commercial Street being an exception, which recorded a q-o-q drop of 3% in the main street rentals owing to paucity of optimum sized floor plates. Starbucks opened its flagship store in Bengaluru (Kormangala) in 4Q 2013. Further, prominent main streets like MG Road, Brigade Road, Kormangala 80 Feet Road and Jayanagar 4th block continued to witness increased enquires from apparels, jewellery and footwear retailers.
Outlook
Capital values across select mid-end residential submarkets like East, South-East, North and NorthWest are anticipated to see an upward revision in the next quarter. While proximity to workplaces and good support infrastructure are expected to contribute to the uptrend in East and South-East, the submarkets of North and North-West may record appreciation due to ongoing and proposed infrastructure initiatives. Considering the office transaction spillovers from the last quarter of 2013, the first quarter of 2014 is expected to record significant leasing activity. Further, as a result of the anticipated supply and precommitments, Outer Ring Road is expected to
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continue being a major destination for office leasing activity. For the next quarter, the rentals for all the submarkets are likely to remain in similar ranges. Most mall submarkets are expected to see stable rentals in the next quarter. However, lower trading densities in select locations like Cunningham Road and Mysore Road might lead to a possible drop in rentals. Similarly, most main streets are anticipated to record stable rentals except Marathahalli Junction, which might witness appreciation in rentals due to low availability of quality retail spaces.
Chandigarh
Market Overview
Cautious buyer sentiment led to subdued transaction activity in Chandigarh in the fourth quarter of 2013. This led to capital values remaining largely stable from the previous quarter. However, the completion of more than 2,500 units in the fourth quarter of 2013 in suburban areas like Panchkula, Mullanpur and Technology Park led to a slight appreciation in the capital values in the suburban areas. Developers came up with attractive payment plans and offered discounts during the festive season to attract end-users and investors in underconstruction projects. The Tri-City did not witness any new launches in the fourth quarter due to inventory pile up in the under-construction projects. The sluggish pace of leasing activity in the office segment continued in the fourth quarter of 2013. Manufacturing and engineering continued to be the main demand drivers for commercial office space in the Tri-City. Despite high vacancy levels and subdued leasing activity, the rentals of Grade A office space remained stable from the previous quarter. The rental values in malls and main streets remained stable during the fourth quarter from the previous quarter. The absorption during the quarter was mainly from the apparels and footwear retailers, with national and international brands expanding their presence in the Tri-City. Prominent main street locations of Sector 17, 26 and 35 continued to be favoured by brands looking to expand their market presence.
Trends And Updates

Demand for ready residential properties remained subdued across the Tri-City. During 4Q 2013, capital values for high-end properties declined marginally in Sectors 2-11 and Sector 28, on a q-o-q basis. However, values in Panchkula remained stable and the values in Manimajra increasing by nearly 9%. In the midsegment, the capital values saw marginal increase, ranging from 3-6% in most locations.
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Average Capital Values High End (INR)

Location Chandigarh Sector: 2-11 4Q 2012 160,000 180,000/sqyd 140,000 170,000/sqyd 110,000 145,000/sqyd 13,000/sf 1Q 2013 160,000 180,000/sqyd 140,000 170,000/sqyd 110,000 145,000/sqyd 13,000/sf 2Q 2013 160,000 180,000/sqyd 140,000 170,000/sqyd 110,000 145,000/sqyd 13,000/sf 3Q 2013 160,000 180,000/sqyd 140,000 170,000/sqyd 110,000 145,000/sqyd 13,000/sf 4Q 2013 155,000 170,000/sqyd 140,000 160,000/sqyd 110,000 145,000/sqyd 14,000/sf
Chandigarh Sector: 28
Panchkula
Manimajra
Source: Cushman and Wakefield Research Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villa *sqyd: Square Yard
Average Capital Values Mid Range (INR/sf )

Location Zirakpur Mohali Dera Bassi Panchkula 4Q 2012 2,500 - 3,600 3,000 - 4,000 3,000 - 3,200 2,700 - 3,300 1Q 2013 2,500 - 3,600 3,000 - 4,000 3,000 - 3,200 2,700 - 3,300 2Q 2013 2,500 - 3,600 3,000 - 4,000 3,000 - 3,200 2,700 - 3,300 3Q 2013 2,500 - 3,600 3,000 - 4,000 3,000 - 3,200 2,700 - 3,300 4Q 2013 2,800 - 3,600 3,200 - 4,000 3,000 - 3,200 2,800 - 3,500
Source: Cushman and Wakefield Research Note: The above values for mid-segment apartments typically include units of 1,600-2,000 sf
Key to Locations:
High-end Segment: Panchkula: Sectors - 2, 4, 6, 7, 8, 9, 15 Mid-end Segment: Mohali: Sectors - 114, 115, 127 Panchkula: Sector - 20

Owing to inventory pile up and cautious buyer sentiments, the Tri-City did not witness any new launches in the fourth quarter of 2013. A few developers extended the period of soft launch of their projects and deferred the official launch by a few more months, primarily due to low response from the buyers.

Many projects scheduled for completion in the first quarter of 2014 have been deferred to later quarters of the year, considering the low response from buyers for existing projects. With the slow pace of construction, only one project in the suburban location of Panchkula is expected to be completed in the next quarter.

The rentals of office space in IT parks and SEZs remained unchanged in the fourth quarter of 2013. Despite quoting higher rental values in the fourth quarter, transaction activity was witnessed at rental rate prevailing in previous quarter. Rentals values for office spaces in IT Parks and SEZs remained in similar range of INR 45-55 per square feet per month (psf per month) and that of commercial office spaces at INR 70-80 psf per month in the fourth quarter of 2013.
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Retail Sector
Demand remained stable in the retail sector with brands like Adidas, Allen Solly, and Van Heusen to name a few expanding their market presence in the Tri-City. Despite steady demand, vacancy levels remained high in malls across the city. Due to this the rental values in malls maintained status quo at INR 300 psf per month in the fourth quarter of 2013. Main street locations witnessed demand from Banking and F&B (Food & Beverages) sector with brands like Pizza hut, Dominos and Sagar Ratna increasing their footprints in the market.
Outlook
In the residential sector, capital values are expected to remain largely stable in Chandigarh in the short term with possible upward price movements in only suburban areas like Mullanpur, Mohali, Zirakpur and Panchkula. However, with a number of projects scheduled for completion in 2014, the capital values are expected to improve in the second half of the year. Moreover, with the government expediting the process of land acquisition for Medi City and IT city, development of infrastructure is also expected to provide necessary boost to demand and drive the capital values northwards. The demand for office space is expected to remain sluggish in the first quarter of 2014. More than 450,000 square feet (sf) of new office supply is anticipated in 1Q 2014. In view of the subdued demand, this would result in higher vacancy levels and stable rental values in the Tri-City. The demand for quality retail spaces is expected to remain stable in Chandigarh, which is likely to keep rentals stable in the next quarter. The first quarter of 2014 is expected to see new mall supply of nearly 1.1 million square feet (msf) in Mohali. Although a number of retailers have pre-committed to this supply, the addition of such huge supply would affect overall vacancy levels and might adversely affect the rentals in Mohali.
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Chennai
Market Overview
Chennais residential property market slowed down in 4Q 2013 and witnessed a 38% q-o-q decline in the number of new residential units launches. Nearly 2,500 residential units were launched, mainly in suburban and peripheral locations. Of the total units launched, around 31% were in the Rajiv Gandhi Salai micromarket. While mid-end category accounted for 93% of the total units launched during this quarter, it recorded a q-o-q decline of 38%. High-end residential units accounted for the remaining 7% of new residential unit launches and were primarily concentrated in East Coast Road (ECR) and Nandambakkam. In comparison to the previous quarter, launches in high-end category increased by 100% during this quarter. Chennais office property market witnessed a slowdown as the overall (all Grades) leasing activity during this quarter decreased by 67% on a q-o-q basis and was noted at around 1.0 msf. Though the leasing activity decreased from the previous quarter, the overall net absorption for all grades remained at par with last quarter and was registered at 766,400 square feet (sf). A clear preference for Grade A office spaces was evident in 4Q 2013, as 86% of the total leasing transactions and 92% of the net absorption was registered for Grade A assets. Only 30,000 sf of new office supply was infused in this quarter, all of which belonged to Grade A in CBD and Off-CBD micro-markets. The overall vacancy rate in Chennai dipped by 0.2 percentage points and was noted at 16.1%. During 4Q 2013, Chennais retail real estate market witnessed 311,000 sf infusion of new mall space in Velachery, and the new mall became operational with approx. 84% occupancy. The vacancy in the new mall coupled with some churn in Chennais CBD resulted in 1.1 percentage points rise in the citys mall vacancy levels, which was noted at 6.5% during this period. Enquiries from apparels, accessories and cosmetic brands remained strong for select shopping malls in Chennai-CBD and Chennai-South micromarkets.
Trends And Updates

Many prominent projects by developers like Adroit Urban Developers, Arihant Foundations, Anitech Foundations and XS Real became available for possession in locations such as Adyar, Velachery, GST Road and Rajiv Gandhi Salai (RGS). It is anticipated that nearly 5,000 residential units are expected to have been completed during 4Q 2013, of which 56% belong to the mid-end category. Inherent demand for high-end properties in locations like Boat Club, Kotturpuram and Kilpauk led to a 4-6% increase in capital values, while in Adyar an increase of 13% was noted. Capital values in the mid-end category remained stable due to ample supply and significant number of new launches.
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Average Capital Values High End (INR 000/sf)

Location Boat Club R.A Puram* Besant Nagar Kotturpuram Adyar Poes Garden** 2008 18.0 - 24.0 13.0 - 15.0 NA NA 5.5 - 10.0 14.5 - 20.0 2009 18.0 - 20.0 13.0 - 15.0 NA NA 5.5 - 9.5 14.5 - 18.0 13.0 - 16.0 6.0 - 9.0 4.0 - 8.0 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013
18.0 - 23.0 20.0 - 25.0 23.0 - 27.0 23.0 - 30.0 23.0 - 30.0 23.0 - 30.0 23.0 - 33.0 13.0 - 16.5 NA NA 8.0 - 12.0 14.0 - 17.0 12.5 - 13.5 12.0 - 14.0 11.5 - 13.5 15.0 - 19.0 13.0 - 14.5 14.0 - 16.0 13.0 - 14.5 17.0 - 21.0 13.5 - 15.0 14.0 - 18.5 13.0 - 15.0 17.0 - 21.0 13.5 - 15.0 14.0 - 18.5 13.0 - 15.0 17.0 - 21.0 13.5 - 15.0 14.0 - 18.5 13.0 - 15.0 17.0 - 23.0 13.5 - 15.0 14.0 - 20.0 14.0 - 17.5
14.5 - 20.0 17.5 - 24.5 13.0 - 16.5 7.5 - 10.5 8.0 - 12.0 13.0 - 17.0 8.0 - 11.5 9.0 - 15.0
18.5 - 25.0 20.5 - 28.0 20.5 - 28.0 20.5 - 28.0 20.5 - 28.0 17.0 - 20.0 12.0 - 14.0 12.0 - 15.0 14.0 - 25.0 12.0 - 17.0 12.0 - 15.0 14.0 - 25.0 12.0 - 17.0 12.0 - 15.0 14.0 - 25.0 12.0 - 17.0 12.0 - 15.0 14.0 - 25.0 12.0 - 17.0 12.0 - 16.0
Nungambakkam 13.0 - 16.0 Anna Nagar Kilpauk 6.0 - 9.0 4.0 - 8.0
Source: Cushman & Wakefield Research Note: The above values for high-end segment typically include units of 1,800-4,000 sf The time series have been adjusted to reflect the updated values *RA Puram also includes Alwarpet and Abhiramapuram **Poes Garden also includes Venus Colony and Kasturi Rangan Road
Average Capital Values Mid Segment (INR 000/sf)

Location Adyar Rajiv Gandhi Salai (Perungudi) Velachery T. Nagar Mylapore Mogappair Kilpauk 2008 4.5 - 6.5 2.5 - 3.6 3.8 - 4.2 4.0 - 6.5 NA NA 4.5 - 6.0 2009 4.5 - 6.5 2.5 - 2.8 3.5 - 4.0 4.0 - 6.5 NA NA 4.5 - 6.0 2010 6.0 - 8.5 3.5 - 4.5 3.5 - 5.0 7.5 - 10.5 NA NA 6.0 - 8.0 2011 8.0 - 11.0 4.0 - 5.5 3.5 - 5.5 8.5 - 11.5 8.0 - 12.5 5.0 - 5.5 7.5 - 9.5 2012 9.0 - 13.0 5.0 - 6.3 4.5 - 6.5 8.5 - 14.0 10.0 - 15.0 5.0 - 6.5 9.0 - 12.0 1Q 2013 10.0 - 14.0 5.0 - 6.3 6.0 - 8.0 10.0 - 16.0 12.0 - 17.0 5.0 - 7.5 9.0 - 12.0 2Q 2013 10.0 - 14.0 5.0 - 6.3 6.0 - 8.0 10.0 - 16.0 12.0 - 17.0 5.0 - 7.5 9.0 - 12.0 3Q 2013 10.0 - 14.0 5.0 - 6.3 6.0 - 8.0 10.0 - 16.0 12.0 - 17.0 5.0 - 7.5 9.0 - 12.0 4Q 2013 10.0 - 14.0 5.0 - 6.3 6.0 - 8.0 10.0 - 16.0 12.0 - 17.0 5.0 - 7.5 9.0 - 12.0
Source: Cushman & Wakefield Research Note: The above values for mid segment typically include units of 1,000-2,000 sf The time series have been adjusted to reflect the updated values

During 4Q 2013, around 2,500 new residential units were launched in Chennai, registering a q-o-q decline of 38%. This included projects from developers such as Urban Tree Infrastructure, Anitech Foundations, Vijay Shanthi, StepStone Promoters, etc. Of the units launched, mid-end segment accounted for 93% of the new launches.
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Project Name Mahidhara Supreme . Phase I Aashira Phase I
Developer Mahidhara Projects Malles Construction
Location Oragadam Perumbakkam
Number of Units* 400 384
Type Villas Apartments
Area of Units (in sf) 2 BHK: 988 3 BHK: 1,508 to 2,531 1 BHK: 547 to 611 2 BHK: 892 to 1,035 3 BHK: 1,202 to 1,352 2 BHK: 973 to 1,293 3 BHK: 1,276 to 2,429 1 BHK: 600 to 630 2 BHK: 829 to 1,100 3 BHK: 1,200 to 1,600 1 BHK: 466 2 BHK: 851 to 1,121 3 BHK: 1,390 to 1,434 3 BHK: 2,308 2 BHK: 930 to 980 2 BHK: 1,100 to 1,110 2 BHK: 869 to 1,363 3 BHK: 1,256 to 1,395 2 BHK: 1,005 3 BHK: 1,270 to 2,000 3 BHK: 3,121 to 4,896 4 BHK: 5,299 to 5,264 4 BHK: 3,804 2 BHK: 774 to 1,063 2 BHK: 778 to 1,209 3 BHK: 1,121 to 1,257 2 BHK: 980 to 1,171 3 BHK: 1,602 to 1,681 3 BHK: 1,271 to 1,274 2 BHK: 895 to 1,010 3 BHK: 1,010 to 1,310 2 BHK: 1,036 3 BHK: 1,356
Love Blue Bells
Vijay Shanthi Builders Shri Janani Homes (P) Ltd.
Mambakkam, Sriperumbudur Padur
377 288
Apartments Apartments
Urbantree Oxygen Phase I Meadow Ville (Phase II B) Rock Ville Eden Gardens Tiara Myans Arihant Villa Viviana II Color Castle Peru's Tranquility Iha Casa Abri Anitech Sunflower
Urban Tree Infrastructure
Perumbakkam
284
Apartments
Sare Homes Raba Promoters (P) Ltd. Evocon Private Limited Arihant Foundations Mayances Construction & Engineering Arihant Foundations Color Homes StepStone Promoters Kay Arr Builders Atikramya Developers VJS Associates Anitech Foundations
Kolathur Kundrathur Tambaram Nandambakkam East Coast Road Maraimalai Nagar Perumbakkam Perumbakkam Thoraipakkam Tambaram Thoraipakkam Maraimalai Nagar
188 157 148 96 73 42 40 36 20 8 8 5
Villas Apartments Apartments Apartments Villas Villas Apartments Apartments Apartments Apartments Apartments Apartments

Due to subdued market sentiments and rising input costs, construction activity progressed at a slow pace during this quarter in most micro-markets. Construction delays have deferred completion dates for many projects in locations like RGS, Mogappair, GST Road, etc. Though the demand for residential properties has been slow, end-users are willing to pay an additional price for projects nearing completion stages or ready for handover as it helps them to mitigate the risks associated with newly launched, underconstruction projects that typically are considered risky propositions due to uncertain time lines.

Of all the locations, Peripheral-RGS and SuburbanGuindy accounted for nearly 44% and 23%, respectively of the overall net absorption. The IT-ITeS sector accounted for 60% of the total gross absorption, followed by healthcare and engineering at 7% and 5% respectively. The city's weighted average rental showed a marginal uptick of 1.5%, mainly due to an 11% increase in weighted average rentals for Suburban-Perungudi Taramani, owing to availability of good quality Grade A spaces and higher demand for this micro-market. Only 30,000 sf commercial space, all belonging to Grade A, was infused in the market in CBD and Off-CBD locations.
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Retail Sector
This quarter recorded stable rentals in most main streets except Nungambakkam High Road where rentals increased by 7.1% on a q-o-q basis, due to high demand and lack of new supply. Enquiries by electronics, apparels and footwear retailers remained high, mainly for Pondy Bazar and Nungambakkam High Road.
Outlook
As per current estimates, nearly 1,100 residential units are currently in the soft launch stage, of which 300 belong to the high-end segment. These units are expected to be launched in Nungambakkam, Kotturpuram, R.A. Puram, Mylapore and Rajiv Gandhi Salai in the first half of 2014. Around 2,800 residential units are expected to be completed during 1Q 2014. However, despite the increasing input costs for developers, the sizeable new supply is likely to prevent rental and capital values from rising drastically, and they are expected to remain stable in the next quarter. It is anticipated that during 1Q 2014, the net absorption levels for office space will be much higher than that of 4Q 2013 as a number of enquiries are tending towards closure. It is expected that a total new supply of 712,000 sf will be infused in the market during 1Q 2014; 97% of which belongs to Grade A. Less new supply coupled with high enquiries and dipping vacancy levels mainly for Suburban-Guindy and Suburban-Perungudi Taramani may create an upward pressure on rentals for these micro-markets. Dearth of quality retail spaces along with healthy demand may lead to an increase in rentals during the next quarter for Usman Road-North and Pondy Bazar. Mall rentals are expected to remain stable except for Chennai-South where higher demand from apparels, accessories and cosmetic brands may push the rentals upwards. No new mall supply is likely to be infused in Chennai during 1Q 2014.
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Hyderabad
Market Overview
In 4Q 2013, the residential property market witnessed the launch of approximately 750 new units in various micromarkets across mid and highend categories, registering a 61% decline from the previous quarter. Almost 78% of these projects belonged to the mid-end segment and were concentrated in Madhapur, Gachibowli, Kukatpally, Miyapur and Nizampet micro-markets. High-end category accounted for the remaining 22% of the new launches. Despite the ongoing political
uncertainties related to the bifurcation of the State, almost all micromarkets witnessed a stable trend in the capital and rental values, across categories. Only Madhapur, Gachibowli and Kukatpally witnessed a 3% q-o-q capital value appreciation in the mid-end segment, driven by their proximity to the IT and financial hub of the city. The office real estate market of Hyderabad saw influx of nearly 2.24 msf in the fourth quarter of 2013. Nearly 41% of the total supply was in SEZs situated in Madhapur. City-level vacancy was recorded at 19.8% at the end of 4Q 2013, rising by 2.0 percentage on a q-o-q basis, primarily due to considerable new supply across the city. The leasing activity and net absorption for 4Q 2013 recorded a qo-q increase of 71% and 42%. A mall admeasuring 425,000 sf became operational in Kukatpally with approximately 70% occupancy. Attapur, Nagole and Kompally witnessed increased enquiry from Food and Beverages (F&B), hypermarkets, multiplexes and apparel retailers.
Trends And Updates

The fourth quarter of 2013 witnessed moderate enquiries for ready residential properties, especially in the north-western quadrant of the city. Locations such as Madhapur and Gachibowli witnessed marginal q-o-q appreciation of 3% in capital values of mid-end residential properties, due to the demand driven by the employees from the IT-ITeS sector. The capital and rental values in the high-end segment remained stable across all locations, due to moderate demand in the wake of the current political uncertainty. Projects catering to mid-end segment in Bachupally and Madhapur totalling approximately 900 units and having an average unit size in the range of 1,500-2,000 sf were completed during this quarter.
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Location Banjara Hills* Jubilee Hills * Himayatnagar West & East Marredpally Begumpet, Somajiguda Madhapur, Gachibowli Kukatpally Miyapur, Nizampet 2009 5.8 - 6.5 5.5 - 6.3 3.3 - 4.0 3.3 - 3.8 3.9 - 4.5 3.5 - 4.3 3.3 - 4.0 2.6 - 3.3 2010 6.0 - 7.2 6.0 - 7.0 3.7 - 4.0 3.5 - 4.0 4.1 - 4.5 3.8 - 4.9 3.5 - 4.5 2.7 - 3.4 2011 6.4 - 7.5 6.2 - 7.2 3.7 - 4.2 3.6 - 4.3 4.3 - 4.8 3.9 - 5.3 3.8 - 5.1 2.8 - 3.5 2012 6.5 - 7.5 6.1 - 7.2 3.6 - 4.2 3.6 - 4.3 4.3 - 4.7 4.1 - 5.3 3.8 - 5.1 2.9 - 3.5 Q1 2013 6.5 - 7.5 6.1 - 7.2 3.6 - 4.2 3.6 - 4.3 4.1 - 4.9 4.1 - 5.3 3.8 - 5.1 2.9 - 3.5 Q2 2013 7.0 - 8.5 6.5 - 8.5 4.0 - 5.5 4.0 - 5.5 4.5 - 5.0 4.5 - 6.0 4.0 - 6.0 2.9 - 3.5 Q3 2013 7.0 - 8.5 6.5 - 8.5 4.0 - 5.5 4.0 - 5.5 4.5 - 5.5 4.5 - 6.0 4.0 - 6.0 2.9 - 3.5 Q4 2013 7.0 - 9.5 6.5 - 9.5 4.0 - 5.5 4.0 - 5.5 4.5 - 5.5 4.5 - 6.0 4.0 - 6.0 2.9 - 3.5
Source: Cushman and Wakefield Research Note: The above values for high-end typically include units of 1,600-4,000 sf * Range has been increased to account for some units quoting higher capital values in the secondary market. However, no capital appreciation has occurred in these locations.
Average Capital Values - Mid Segment (INR 000/sf)

Location Banjara Hills Jubilee Hills Himayatnagar West & East Marredpally Begumpet, Somajiguda Madhapur, Gachibowli Kukatpally Miyapur, Nizampet 2009 3.6 - 4.2 3.5 - 4.0 2.7 - 3.0 2.5 - 2.8 2.6 - 3.1 2.5 - 3.1 2.4 - 2.9 1.8 - 2.5 2010 3.6 - 4.5 3.7 - 4.0 2.7 - 3.5 2.7 - 3.0 2.8 - 3.5 2.6 - 3.4 2.7 - 3.2 1.8 - 2.5 2011 3.8 - 4.6 4.0 - 4.2 2.7 - 3.7 2.8 - 3.2 2.9 - 3.6 2.8 - 3.5 2.9 - 3.5 2.4 - 3.0 2012 3.8 - 4.8 4.0 - 4.2 2.8 - 3.6 2.7 - 3.2 2.8 - 3.6 3.0 - 3.8 2.9 - 3.6 2.2 - 3.4 Q1 2013 3.8 - 4.8 3.8 - 4.4 2.8 - 3.6 2.7 - 3.2 2.8 - 3.7 3.0 - 3.9 2.9 - 3.6 2.3 - 3.4 Q2 2013 4.0 - 5.0 3.8 - 4.4 3.0 - 3.8 3.0 - 3.5 3.0 - 4.0 3.5 - 4.0 2.9 - 4.0 2.7 - 3.4 Q3 2013 4.0 - 5.0 3.8 - 4.4 3.0 - 3.8 3.0 - 3.5 3.0 - 4.0 3.5 - 4.2 2.9 - 4.0 2.7 - 3.4 Q4 2013 4.0 - 5.0 3.8 - 4.4 3.0 - 3.8 3.0 - 3.5 3.0 - 4.0 3.5 - 4.2 3.1 - 4.0 2.7 - 3.4
Source: Cushman and Wakefield Research Note: The above values for mid segment typically include units of 1,200-1,600 sf

In Hyderabad, nearly 750 new residential units were launched in Madhapur, Gachibowli, Miyapur and Nizampet micromarkets. The new launches in 4Q 2013 registered a q-o-q decline of 61%. Around 78% of these projects catered to mid-end segment and the remaining 22% were in the high-end segment. However, unlike 3Q 2013, there were no new units launched in the affordable category during this quarter. Projects launched were mainly in 2, 3 and 4 BHK configurations with unit sizes ranging 1,200-1,700 sf and capital value range of INR 2,5003,500 per sf for mid-end and INR 6,000-6,500 per sf for the high-end segment. Nearly 85% of these units were apartment, while villas contributed the remaining 15% units. Approximately, 1,500 units are in pre-launch stages in locations such as Gachibowli, Kismatpur, Kukatpally and Bachupally.
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Project Name Pushpak
Developer Abhay Infrastructure
Location Nizampet
Number of Units* 330
Type Apartment Apartment
Area of Units (in sf) 2 BHK: 1,205 3 BHK: 1,205 to 1,705 3 BHK: 1,665 to 2,295
Paramount Height
Aditya Construction Company DSR Buildings & Developers Mahindra Life Space Developers
Gachibowli
126
Reganti Ashvita
Madhapur Kukatpally
90 85
Apartment Apartment
4 BHK: 3,033 to 3,333 2 BHK: 1,218 to 1,261 3 BHK: 1,567 to 1,947 4 BHK: 2,018 to 2,082 3,4 BHK: 3,055 to 5,170 4BHK : 3,600
Mantri Euphoria Sark One Extension
Mantri Developers Pvt. Ltd Manikonda Sark Projects Mokhila
75 38
Villas Villas

The fourth quarter of 2013 continued to witness robust construction activity in the western locations of Madhapur, Gachibowli, Miyapur and Nizampet, with developers constructing more than 10,000 units in various residential projects. Demand continues to remain stable due to the current political scenario. Select under construction projects in prominent residential locations such as Madhapur, Gachibowli and Kukatpally witnessed a q-o-q price appreciation of 3-5%, attributed to the locations proximity to the major commercial office locations.

In 4Q 2013, Hyderabad's office market witnessed a leasing activity of approximately 1.47 msf, registering a 71% q-o-q increase, majority of it pertaining to pre-commitments of 2012 and 2013. The city witnessed an influx of approximately 2.2 msf of office space, out of which 43% belonged to Grade A category. The entire Grade A supply was concentrated in suburban micro-market of Madhapur and comprised of SEZ developments. The supply influx pushed up the city vacancy levels by 2 percentage points and was noted at 19.8%. The vacancy level for Grade A stock witnessed a hike of 1.4 percentage points and was recorded at 14.1%. Around 62% of the overall transactions witnessed in 4Q 2013 were in the IT-ITeS sector. Rentals remained more or less stable across micro-markets.
Retail Sector
A new mall in Kukatpally admeasuring 425,000 sf became operational in 4Q 2013. The mall supply infusion has pushed up the overall mall vacancy of the city by 6.8 percentage points to 8.2%. Malls in Banjara Hills and Madhapur witnessed a surge in enquiries from apparels and International F&B brands. Prominent main streets like Banjara Hills Road No.2, Jubilee Hills Road No.36, Himayatnagar and A.S. Rao Nagar witnessed enquiries from electronics, footwear and apparels retailers. Attapur, Nagole, Kompally, Uppal and LB Nagar are some of the emerging organized retail precincts that have experienced healthy enquiries from various retailers operating in categories like hyper-markets, F&B, multiplexes, apparels and electronics.
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Outlook
The residential market is expected to witness moderate demand and stable rentals in the next 3-6 months due to cautious approach adopted by endusers. However, select micromarkets like Madhapur, Gachibowli, Kukatpally and Miyapur are likely to witness a marginal capital value appreciation in midend segment, primarily due to demand stemming from employees of the IT-ITeS offices and financial district of the city that is in proximity to these micromarkets. The north-west corner of the city is expected to witness robust launches in the next quarter with approximately 1,500 units already in the pre-launch stage. The commercial office market is expected to witness an influx of 3.4 msf of office space with 76% of it belonging to Grade A category. The leasing activity is anticipated to remain moderate in the next 3-6 months. Healthy supply in the next quarter is expected to keep the rentals under pressure, especially in Gachibowli, where the vacancy is already high. The city is likely to witness supply addition of 200,000 sf of mall space (at Attapur) in 1Q 2014. However, moderate demand and supply situation will keep the rentals under check. Select retailers operating in F&B, furniture and apparels categories are anticipated to enter Hyderabads retail market in the near period.
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Jaipur
Market Overview
The residential sector in Jaipur witnessed fervent transaction activity in the fourth quarter of 2013. Capital values in the central areas of C-Scheme and Civil Lines increased by 8-10% compared to the third quarter of 2013. However, capital values in Malviya Nagar increased nearly by 10% in 4Q 2013. Peripheral areas of the city like Ajmer Road, Sirsi Road, Jagatpura and Mansarovar witnessed increase in capital values ranging from 4-6% over the previous quarter. New launches in the city continued to be mainly in the suburban and peripheral areas such as Malviya Nagar, Jagatpura and Ajmer Road. Jaipur witnessed new office space supply of nearly 200,000 square feet (sf) in the fourth quarter of 2013. The demand was mainly driven by the BFSI (Banking, Financial Services and Insurance) and Logistics sectors. A few occupiers shifted from the central area of MI Road and C-Scheme to secondary business districts such as Malviya Nagar, considering ease of accessibility and better quality office facilities. The rental values for office spaces remained stable over the quarter across the city. The city witnessed new supply of nearly 450,000 sf of mall space in the fourth quarter of 2013. Prominent main street locations of MI Road, Tonk Road, Malviya Nagar and Vaishali Nagar witnessed interest from a number of brands that expanded their market presence in Jaipur. Rental values in main streets remained stable over the last quarter. However, with the infusion of new supply in malls at higher rental values the mall rents increased by 35% on a quarterly basis.
Trends And Updates

Demand for ready residential property in locations such as C-scheme and Civil Lines was buoyant in the fourth quarter of 2013. Capital values in the high-end segment increased by 8-10% q-o-q and rental values increased by 6-7% in the same period. Mid-segment also witnessed healthy increase in capital values in the range of 4-6% from the previous quarter, with a rise in rental values as well. Malviya Nagar, which is located strategically between the airport and the central locations such as MI Road, continued attracting end-users and investors with capital values increasing by nearly 10% in the last quarter of 2013.
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Location C- Scheme Bapu Nagar Civil Lines Malviya Nagar Q3 2013 7,000 - 9,000 /sf 6,500 - 7,500 /sf 80,000 - 95,000 /sqyd* 70,000 - 80,000 /sqyd Q4 2013 7,500 - 10,000 /sf 7,000 - 8,000 /sf 80,000 - 100,000 /sqyd 75,000 - 90,000 /sqyd
Source: Cushman and Wakefield Research Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villas *sqyd: Square Yard
Average Average Capital Capital Values Values Mid Segment High End(INR (INR000/sf) 000/sf)
Location Malviya Nagar Vaishali Nagar Mansarovar Jagatpura Q3 2013 55,000 - 65,000 /sqyd 2,700 - 3,000 /sf 2,700 - 3,000 /sf 2,650 - 2,900 /sf Q4 2013 60,000 - 70,000 /sqyd 2,700 - 3,100 /sf 2,800 - 3,200 /sf 2,800 - 3,000 /sf
Source: Cushman and Wakefield Research Note: The above values for mid-segment apartments typically include units of 1,600-2,000 sf, both apartments and villas *sqyd: Square Yard

Jaipur witnessed new supply mainly in the suburban and peripheral areas such as Ajmer Road, Sirsi Road, Vaishali Nagar and Mansarovar with capital values being in the range of INR 2,600-3,200 per sf. A few small projects were launched in the central areas near Civil Lines as well. These were mainly low rise buildings with capital values quoting in the range of INR 6,500-7,500 per sf. Developers offered discounts during the festive season to attract end-users and investors alike.

Along with ongoing under construction activity in many projects, Jaipur also witnessed nearly 3,000 unit completions in the fourth quarter of 2013. Majority of these units were mainly on Tonk Road with the remaining spread over other peripheral areas such as Ajmer Road, Vaishali Nagar, Sikar Road and Jagatpura. Most of these units catered to the mid and affordable segment.

The rentals of office spaces in IT parks and SEZs remained unchanged in the fourth quarter of 2013. Demand for quality office space and lack of new supply led to occupiers leasing spaces in non-CBD micromarkets such as Malviya Nagar, Tonk Road and Vaishali Nagar. The rental values in the Central Business District (CBD) comprising of micromarkets such as MI Road and C-Scheme remained stagnant at INR 65 per square feet per month (psf per month) and that for nonCBD micromarkets at INR 35-50 psf per month.
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Retail Sector
With infusion of new supply at higher rental values than prevailing average rents, the mall rents in Jaipur increased by 3-5% in the fourth quarter of 2013. National and International retailers like Zara, Shoppers Stop, Allen Solly, etc. continued to establish and expand their presence in the city across prominent malls such as Gaurav Tower, Crystal Palm, MGF Metropolitan and Triton. The main streets witnessed Food & Beverages (F&B) and apparels brands such as Mainland China and Lilliput respectively lease spaces during the quarter.
Outlook
In the residential sector, capital values are expected to continue their upward trend. The enduser demand for projects in central locations and investor appetite for units in the peripheral locations is likely to remain strong in the next quarter. More than 1,000 units are scheduled for completion in the first quarter of 2014 in suburban areas such as Mansarovar and Sirsi Road. Further enhancement of social infrastructure in these areas will improve liveability, leading to appreciation in capital values. Nearly 100,000 sf of new office space is scheduled for completion in the first quarter of 2014. With new office buildings mainly in Tonk Road, Malviya Nagar and Vaishali Nagar offering better Demand for quality retail spaces is expected to remain healthy, especially in prominent main street location of MI Road and in malls such as MGF Metropolitan and Gaurav Tower. New mall supply of approximately 220,000 sf is scheduled for completion in the first quarter of 2014. Rental values for both malls and main street locations are likely to remain stable over the next quarter. facilities, lower rentals and no new supply in the central area of Jaipur, occupiers will continue to move to the non-CBD micromarkets. With stable demand, rental values are expected to remain constant in the next quarter.
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Kolkata
Market Overview
In 4Q 2013, Kolkata's residential real estate sector witnessed a slight upward momentum with total units launched increasing by 6% over the preceding quarter. Around 1,930 units were launched during the quarter. Capital and rental values remained stable during the quarter across micromarkets in both mid and high-end segments, primarily due to slow pace of transactions. During 4Q 2013, the commercial office sector witnessed total supply of 620,000 sf, all of which was Grade A and almost three times the supply in the previous quarter. Total net absorption was recorded at over 216,000 sf, which increased by 21% over the previous quarter. Overall vacancy level inched up by 1.1 percentage points and touched 24.2% due to significant new supply influx and low absorption. Weighted average rentals saw a marginal q-o-q decline of 0.1-0.7% across submarkets. Retail sector witnessed healthy demand from apparels, jewellery and accessories segment during the quarter wherein malls attracted more demand than the main streets. The quarter witnessed new mall supply of around 438,000 sf in a mall that has dedicated zones for luxury brands. Overall vacancy level in malls dropped to 3.9% from 4.3% reported in the previous quarter, owing to healthy leasing activity and new malls becoming operational with more than 95% occupancy levels. Rentals remained stable during the quarter across main streets and malls
Trends And Updates

During 4Q 2013, around 2,270 units were completed in various projects. Nearly 50% of the completed projects were concentrated in North-east submarket. Around 45% of the total completed units catered to the high-end segment. Some of the prominent projects that were completed during the third quarter include DLF New Town Heights in North-east submarket and Tirumani in SouthCentral submarket. Capital values and rentals values in ready properties remained stable during the quarter across submarkets in mid and high-end segments owing to slow pace of transactions.
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Location South South - Central South - East South - West Central East North - East 2009 4.8 - 5.9 8.5 - 9.6 4.5 - 5.7 8.6 - 9.8 7.2 - 10.0 4.0 - 5.2 3.0 - 4.0 2010 5.3 - 6.8 9.5 - 13.0 4.5 - 8.0 8.9 - 13.0 8.0 - 12.5 4.0 - 5.5 3.2 - 4.5 2011 6.3 - 8.5 10.0 - 18.0 5.8 - 9.2 10.0 - 15.0 9.0 - 15.0 4.5 - 6.0 3.5 - 5.0 2012 7.0 - 12.0 10.0 - 18.0 5.8 - 9.5 10.0 - 15.0 10.0 - 17.0 4.5 - 6.8 3.8 - 5.7 1Q 2013 7.5 - 12.0 10.0 - 18.0 5.8 - 9.5 10.0 - 15.0 10.5 - 17.5 4.7 - 7.2 4.0 - 6.0 2Q 2013 7.5 - 13.0 11.0 - 18.5 6.0 - 10.5 11.0 - 16.0 11.0 - 18.5 5.0 - 7.7 4.2 - 6.5 3Q 2013 7.5 - 13.0 12.5 - 18.5 6.0 - 10.5 12.0 - 17.0 12.0 - 19.5 5.0 - 7.7 4.2 - 6.5 4Q 2013 7.5 - 13.0 12.5 - 18.5 6.0 - 10.5 12.0 - 17.0 12.0 - 19.5 5.0 - 7.7 4.2 - 6.5
Source: Cushman and Wakefield Research Note: The above values for high-end segment typically include units of 2,000-4,000 sf *The values for Central, East and North-East micro markets have been revised due to increased market coverage.
Average Capital Values Mid Segment (INR 000/sf)

Location South South - Central South - East North - East North 2009 2.7 - 3.9 4.2 - 5.3 2.4 - 2.8 1.9 - 2.2 1.8 - 3.4 2010 3.2 - 4.5 4.5 - 6.0 2.5 - 3.2 2.2 - 2.7 2.2 - 4.7 2011 3.8 - 5.5 5.5 - 8.0 2.8 - 4.5 2.4 - 3.0 2.8 - 5.2 2012 3.8 - 5.5 5.5 - 8.0 2.8 - 4.5 2.4 - 3.5 2.8 - 5.2 1Q 2013 3.8 - 5.5 5.5 - 8.0 2.8 - 4.5 2.5 - 3.7 2.8 - 5.2 2Q 2013 3.8 - 6.0 5.8 - 8.8 2.9 - 5.0 2.7 - 4.0 3.0 - 5.8 3Q 2013 3.8 - 6.5 5.8 - 8.8 2.9 - 5.0 2.7 - 4.0 3.0 - 5.8 4Q 2013 3.8 - 6.5 5.8 - 8.8 2.9 - 5.0 2.7 - 4.0 3.0 - 5.8
Source: Cushman and Wakefield Research Note: The above values for mid segment typically include units of 1,000-2,000 sf *The values for North-East micro market have been revised due to increased market coverage
Key to Locations:
High End Segment: South: Southern Avenue, Hindustan Park, Triangular Park, Lake Terrace etc. South Central: Ballygunge, Queens Park, Rainy Park, Gurusaday Road, Ballyguange Circular Road, Dover Lane etc. South-East: EM Bypass - Science City, Christopher Road, Pancha Sayar etc. South-West: Alipore Park Road, Ashoka Road, Burdwan Road, Belvedere Road, etc. Central: Park Street, Camac Street, Shakespeare Sarani, Minto Park, Elgin Road, Lee Road, Loudon Street, Rowdon Street, etc. 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 etc. 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 North: Jessore Road, Ultadanga, Shyambazar, Bagbazar, Girish Park, Manicktala, Dum Dum, etc. 29

During 4Q 2013, around 1,930 units were launched in new projects, an increase of about 6% over the previous quarter. Mid-end segment continued to witness majority of the launches with 76% share, followed by high-end segment with 21% share in the total units launched. The high-end and luxury segments witnessed significant drop of 30% and 80% respectively in total units launched over the previous quarter, as developers continued to focus more on the mid-end segment that witnessed 46% q-o-q increase in total units launched. The North-east submarket contributed the most with 62% share in total units
Project Name Ideal Aquaview Developer Ideal Group Location Maheshbathan, New town Jessore Road
launched as the submarket reported almost seven times q-o-q increase in new unit launches. Peripheral locations such as Garia, Narendrapur and Sonarpur in South Kolkata, which used to be major contributors, have witnessed a significant q-o-q drop of 90% in new launches, owing to delay in project approvals. The overall sales activity in new project launches remained slow, as buyers refrained from making any new investments on expectations of a possible price correction. However, select projects in Salt Lake garnered huge response from buyers due to its development as an IT hub.
Number of Units* 416 Type Apartments Area of Units (in sf) 2 BHK: 1,080 to 1,090 3 BHK: 1,475 to 1,510 4 BHK: 1,950 3 BHK: 1,800 4 BHK: 2,500 2 BHK: 867 to 967 3 BHK: 1,174 to 1,274 4 BHK: 2124 Duplex: 2,127 to 2,351 2 BHK: 968 to 1,050 3 BHK: 1,455 to 1,482 4 BHK: 1,958 3 BHK: 1,835 3 BHK: 1,400 to 1,600 4 BHK: 1,900 to 2,250 2 BHK: 941 3 BHK: 1,600 4 BHK: 2,200 to 2,800 4 BHK: 2,751 to 4,044 3 BHK 2 BHK: 950 to 1,275 3 BHK: 1,375 3 BHK: 2,600 3 BHK: 1,034 to 1,663 4 BHK: 3,266 to 3,954 5 BHK: 3,981 to 5,162 6 BHK: 6,091 3 BHK: 1,692 to 2,090 4 BHK: 2,916 to 3,226 3 BHK: 1,200 to 1,492 2 BHK: 900 to 1,043 3 BHK: 1,600 3 BHK: 1,555 to 1,575
Kshitij
Jessore Road Construction LLP / Prudent Infra Magnolia Infrastructure Greentech IT City Pvt. Ltd Earth Work Nirman Pvt. Ltd. Pinion Developers GreenTech IT City & Vedic Realty Orbit Group Merlin Group PS Group/ Srijan/ Signum Unimark Group Pasari Group Eden Group GreenTech IT City & Vedic Realty Adya Group GreenTech IT City & Vedic Realty Akshara Group Martin Infraprojects Prudent Infrarealty Vinayak Group
180
Apartments
Magnolia Prestige Duplex Natura Sunland Residency
Rajarhat Vedic Village, Rajarhat Rajarhat
176 176 142
Apartments Apartments Apartments
Terrace Heights Ashwa Merlin Legacy Cloud 9 Ramsnehi Unimark Tower Taal Chaya Astor Park Greentech City Boat Homes Exotica Heights Greentech City Golf Grove Villas Akshara Vilaas Royal Villa Habitat Bellezza
Rajarhat Hussain Shah Road, Near Alipore Off CIT Road Bhukailash Road, Off Alipore Maniktala New Town Pancha Sayar Shikharpur, Rajarhat Mahamayatala, Garia Shikharpur, Rajarhat
128 108 102 72 67 60 60 57 46 43
Apartments Apartments Apartments Apartments Apartments Apartments Apartments Independent Floors Apartments Villas
New Alipore SK Deb Road, Lake Town Christopher Road Garia
35 30 21 18
Apartments Apartments Apartments Apartments
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In 4Q 2013, capital values remained stable in both mid and high-end segments across most submarkets, primarily due to subdued sales activity in the primary as well as secondary markets. Developers have been offering cash discounts and freebies to lure home buyers and push up sales during the festive season. Around 3,800 units in various projects are expected to be completed in 1Q 2014; more than half of these are concentrated in North-east submarket. Some of the prominent projects that are nearing completion include Sri Avani in Ballygunge and Unitech Cascades in New Town.

In 4Q 2013, the commercial office sector witnessed an uptick both in supply as well as demand. The quarter witnessed total supply influx of 620,000 sf, all of which was Grade A and almost thrice that of the previous quarter. The new supply was concentrated in peripheral submarkets of Salt Lake and Rajarhat, contributing 56% and 44%, respectively. Total net absorption was noted at over 216,000 sf, with almost 97% in Grade A developments. The net absorption was higher by about 21% over the previous quarter primarily due to large transaction from IT-ITeS and engineering and construction (E&C) sectors that contributed 52% and 33%, respectively to the total net absorption. Peripheral submarkets of Salt Lake and Rajarhat continued to have majority share in the total net absorption with 72% and 14% share, respectively. In 4Q 2013, overall vacancy level witnessed an increase of 1.1 percentage points over the previous quarter and was noted at 24.2%, owing to new supply influx. Weighted average rentals remain in similar range as those of the preceding quarter with minor drop of 0.1-0.7% across submarkets.
Retail Sector
The fourth quarter of 2013 witnessed healthy demand in both main streets and malls. Retailers from apparel, accessories, jewellery and electronics segment were the most active and leased out spaces in various parts of the city. The total mall stock in the city increased by 440,000 sf, as a mall became operational in the South Central location during this quarter. The mall has dedicated zones for luxury and premium lifestyle brands and is the first of its kind in the Eastern region. The overall mall vacancy in the city further dropped by 0.4 percentage points and was recorded at 3.9% at the end of 4Q 2013, declining on the back of healthy leasing activity and the new mall becoming operational with more than 95% occupancy. VIP road was the most active main street too witness leasing from retailers of jewellery, accessories and apparels segments. Rentals remained stable across main streets and malls owing to steady demand.
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Outlook
In the first quarter of 2014, the new launch activity in residential sector is expected to remain similar to that witnessed in 4Q 2013, with continued focus on mid-end segment. North-east submarket and Southern peripheral locations such as Narendrapur, Sonarpur and Joka are likely to see majority of new launches as a number of projects, currently in pre-launch stage, are anticipated to be launched in the next quarter. Capital values are likely to remain stable across most locations as the sales activity is expected to take 3-6 months to pick up. However, the South-east submarket might witness a marginal appreciation in both mid and high-end segments owing to new project launches at higher price points. The office space sector is expected to witness an infusion of around 1.7 msf of new Grade A supply in 1Q 2014. A little over one-third of this was expected in the last quarter of 2013, but got deferred to the new year due to slow pace of construction amid subdued demand. Also, more than half of the anticipated supply would be concentrated in the peripheral submarkets of Salt Lake and Rajarhat. Net absorption is expected to improve further in the coming quarter, but the overall vacancy level is also anticipated to increase considering the huge supply pipeline. Weighted average rentals are expected to remain stable with slightly downward pressure in Salt Lake micromarket, owing to high vacancy levels existing. The retail sector is expected to continue to witness healthy leasing activity in 1Q 2014, considering the significant enquiry levels. Also, the quarter may witness more international brands venturing into Kolkata as the citys first luxury mall became operational in 4Q 2013. Rentals may continue to remain stable across most main streets and mall submarkets. However, marginal appreciation might be witnessed in the main-street of VIP Road owing to healthy leasing activity and increased enquiry levels. Mall inventory is expected to increase by about 120,000 sf as the Lake Mall that is partially operational as of now is expected to become fully operational by next quarter.
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Mumbai
MARKET OVERVIEW
Mumbai witnessed a total of approximately 5,500 units launched during 4Q 2013, a decline of 23% from the previous quarter. New launches during the quarter were primarily concentrated in the Western Suburbs (72%), followed by Thane (15%) and Central Mumbai (8%). The decline in launches was due to developers delaying projects in order to reduce current unsold inventory. Most of the new launches during the quarter were in the lower end of the existing capital value ranges in various locations resulting in healthy demand levels for them. The commercial office sector in Mumbai witnessed an overall net absorption of 1.13 million square feet (msf) during the fourth quarter, witnessing a q-o-q decline of 1%. Majority of the netabsorption was concentrated in Grade A developments in the sub-markets of Thane-Belapur Road (31%), Lower Parel (24%), Malad/Goregaon (18%) and Thane (17%). The IT-ITeS sector continued to remain the largest driver (68%) of transaction activity, followed by Education (13%), FMCG (5%) and Logistics sectors (5%). Prime main-street locations like Lokhandwala (Andheri), Fort, Fountain and Kemps Corner witnessed healthy activity during the quarter, with rentals appreciating in the range of 2-7%. Mainstreet rentals in Thane corrected by 4% during the fourth quarter due to landlords reducing rents to attract tenants to vacant spaces. High demand for space and declining availabilities in mall locations like Lower Parel, Ghatkopar and Thane also resulted in q-o-q rental appreciation of 2-5% at these locations. However, mall rentals at Mulund declined 16% during the quarter with developers lowering rentals in select developments which possess high vacancy levels.
TRENDS AND UPDATES

Capital values continued to remain stable across most locations in Mumbai during the quarter. Preference for ready projects remained high among end-users due to a large number of underconstruction projects facing approvals and execution delays. Limited ready availability in sub-markets like South-Central and North Mumbai could result in capital values appreciating at these locations.
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Average Capital Values High End (INR 000/sf) Location South 2008 2009 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013
43.0 - 55.0 42.5 - 58.0 43.0 - 60.0 45.0 - 65.0 48.0 - 70.0 48.0 - 70.0 48.0 - 75.0 48.0 - 75.0 48.0 - 75.0 42.0 - 66.0 45.0 - 70.0 45.0 - 75.0 46.0 - 78.0 46.0 - 78.0 46.0 - 83.0 46.0 - 83.0 46.0 - 83.0 27.0 - 65.0
South Central 47.0 - 67.0 Central North Far North North East
33.0 - 53.0 34.0 - 55.0 35.0 - 55.0 32.0 - 54.0 34.0 - 58.0 30.0 - 58.0 30.0 - 65.0 27.0 - 65.0 27.0 - 31.0 9.0 - 13.0 14.0 - 18.0
22.0 - 30.0 24.0 - 32.0 24.0 - 32.0 28.0 - 40.0 28.0 - 40.0 28.0 - 48.0 28.0 - 48.0 28.0 - 48.0 10.0 - 16.5 10.0 - 16.0 11.0 - 16.5 10.0 - 16.0 11.0 - 16.5 10.0 - 18.0 12.5 - 18.0 14.0 - 22.0 12.5 - 18.0 14.0 - 22.0 12.5 - 18.0 15.0 - 22.0 12.5 - 18.0 15.0 - 22.0 12.5 - 18.0 15.0 - 22.0
Source- Cushman and Wakefield Research Note: The above values for high-end segment typically include units of 2,500-6,000 sf for South, South-Central, Central and North and units of 1,650-3,000 sf for North (Santacruz & Juhu), Far North and North-East
Average Capital Values Mid Segment (INR'000/sf)

Location South 2008 27.0 - 34.0 2009 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013
28.0 - 37.0 30.0 - 40.0 30.0 - 40.0 35.0 - 45.0 35.0 - 45.0 40.0 - 50.0 40.0 - 50.0 40.0 - 50.0
South Central 34.0 - 43.0 35.0 - 45.0 40.0 - 48.0 43.0 - 52.0 43.0 - 52.0 43.0 - 52.0 45.0 - 58.0 45.0 - 58.0 45.0 - 58.0 Central North Far North North East 18.0 - 28.0 13.5 - 19.5 7.0 - 9.0 6.0 - 7.4 15.0 - 26.0 16.0 - 24.0 8.5 - 11.5 6.4 - 8.5 17.0 - 30.0 16.0 - 25.0 9.0 - 12.0 6.5 - 8.5 17.0 - 35.0 16.0 - 25.0 9.0 - 13.0 6.5 - 10.0 22.0 - 37.0 18.0 - 27.0 10.0 - 14.0 8.5 - 12.5 25.0 - 37.0 18.0 - 27.0 10.0 - 14.0 8.5 - 12.5 25.0 - 40.0 23.0 - 40.0 23.0 - 40.0 20.0 - 30.0 20.0 - 30.0 20.0 - 30.0 10.0 - 14.0 8.5 - 12.5 10.0 - 14.0 8.5 - 12.5 10.0 - 14.0 8.5 - 12.5
Source: Cushman and Wakefield Research Note: The above values for mid-end segment typically include units of 1,400-2,500 sf for South, South-Central, Central and North and units of 900-1,400 sf for Far North and North-East
Key to Locations:
South: Colaba, Cuffe Parade, Nariman Point, Churchgate, etc. South Central: Altamount Road, Carmichael Road, Malabar Hill, Napeansea Road, Breach Candy, Pedder Road, etc. Central: Worli, Prabhadevi, Lower Parel/ Parel North: Bandra (W), Khar (W), Santacruz (W), Juhu, etc. Far North: Andheri (W), Malad, Goregaon, etc. North-East: Powai
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Approximately 5,500 units were launched during the fourth quarter, a decline of 23% from the previous quarter. Most new launches were in highend projects in the western suburbs of Mumbai. L&T Realty and Sunteck Realty launched an additional phase in their projects at Powai and Goregaon respectively. Launches in the Dahisar-Mira road belt also remained high with nearly 1,000 units launched by Sheth Developers and ANA Realty. The Thane submarket also continued its contribution to new launch activity with projects at Ghodbunder Road and Kalwa.
Project Name Auris Serenity
Developer Transcon Developers, Sheth Developers Omkar Developers Anchor Realty ANA Realty
Location Malad
Type Apartment
Area of Units (in sf) 2 BHK: 1,225 3 BHK: 2,085 4 BHK: 2,525 2 BHK: 1,200 3 BHK: 1,830 1 BHK: 585 2 BHK: 820 1 BHK: 895 2 BHK: 1,250 3 BHK: 1,895 1 BHK: 698 3 BHK: 1,040 2 BHK: 664 2.5 BHK: 833 3 BHK: 968 2 BHK: 1,400 2.5 BHK: 1,775 2 BHK: 899 to 1,091 3 BHK: 1,395 1 BHK: 738 2 BHK: 1,431 to 1,439 3 BHK: 1,638 to 2,061 2 BHK: 985 to 1,250 2.5 BHK: 1,540 3 BHK: 1,805 to 2,100 4 BHK: 3,400 to 4,235 1 BHK: 414 2 BHK: 652 1 BHK: 680 2 BHK: 1,060 3 BHK: 2,500 to 4,084 4 BHK: 5,916 1 BHK: 600 2 BHK: 950 3 BHK: 1,510 to 2,555 2 BHK: 1,100 2 BHK: 1,300 to 1,800 1 BHK: 361 2 BHK: 525
Omkar Alta Monte Tower B Anchor Park Phase II Avant Grande
Malad Nalasopara Mira Road
605 588 528
Sheth Midori Solitaire
Sheth Developers Wadhwa Developers
Dahisar Thane
468 308
Apartment Apartment
Callisto Avenue 2 Lodha Metropolis
L&T Realty Sunteck City Lodha Developers
Parel Goregaon east Wadala
270 240 236
Ariana and Claron
L&T Realty
Powai
200
Apartment
Evergreen Heights
Wadhwa Developers
Kalwa Ghodbunder Road Parel Kalwa Ghodbunder Road Byculla Andheri Bandra
160 132 120 110 100 72 60 60
Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment
Signature Residences Shree Tirupati Group Kalpataru Avana 9 Riviera Hills Harmony Sky suits Vardhaman Flora Mayfair Akshay KUL Radiance Kalpataru Group Ishaan Developers Harmony Lifestyle Vardhaman Developers Mayfair Developers Kumar Urban
35

Western and central suburban locations witnessed healthy construction activity during the quarter. Capital values in under-construction projects continued to remain stable during the quarter. Developers refrained from any price hikes as they are likely to bear a negative impact on demand. Rise in unsold inventory in high-end submarkets like Lower Parel has resulted in pressure on capital values with prices correcting in a few projects. A few developers are also offering attractive discounts in under construction projects, especially in the premium segment with an aim to liquidate unsold inventory.

Mumbai witnessed an overall supply of 974,000 sf during the quarter, of which one-third was in Grade A developments. Approximately 51% of the new supply was in an IT-SEZ development located along Thane-Belapur Road. Although supply was more than double of the previous quarter, it declined by approximately 32% compared to the fourth quarter of 2012. This was primarily due to the developers delaying completions in order to achieve adequate occupancy rate in their projects.
Retail Sector
Low availability of quality spaces at established locations like Lokhandwala (Andheri), Fort, Fountain and Kemps Corner along with healthy demand from key sectors like apparels and Food & Beverages (F&B) resulted in rentals appreciating during the quarter. Main-street rentals continued to remain stable at Colaba, Vashi and Borivali, due to limited transaction activity. Rentals at Linking road also remained stable during the quarter despite increased enquiries for space from retailers. With no mall supply during the quarter in Mumbai, overall vacancies declined by 0.1 percentage points and were recorded at 15.3% at the end of Q4 2013. With limited transaction activity in malls at Malad, Link Road, Goregaon and Vashi, rentals continued to remain stable during the quarter. Growing residential real estate coupled with infrastructure initiatives like the Chembur-Santacruz link road and mono-rail, both of which are expected to become operational in the first quarter of 2014 have led to increased retailer interests for main-street locations in Chembur.
Outlook
Demand for residential apartments in Mumbai is likely to remain subdued during the first half of 2014 and could result in price corrections in a few underconstruction projects in select locations. A few developers who have delayed launches are expected to launch new projects in the first quarter of 2014. As economic fundamentals are expected to improve in the second half of 2014, demand is also likely to gradually rise across the city. Fresh commercial office supply of 3.3 msf is expected to become operational in the first quarter of 2014 in the micro-markets of Goregaon, Kurla, Dadar and Vikhroli. Net-absorption is expected to remain stable with healthy take-up expected in suburban and peripheral locations such as Andheri, Thane-Belapur Road and eastern suburbs. The high supply could result in increasing vacancy levels and downward pressure on rental values in select micromarkets of Mumbai. Demand for space in main-streets in prime residential locations of Lokhandwala (Andheri), Borivali and Vashi is expected to increase in the coming quarters due to high demand from apparels, electronics and F&B sectors. Low vacancies and high demand for space in mall locations like Lower Parel, Malad and Goregaon could result in higher rentals in the upcoming quarter.
36
National Capital Region

MARKET OVERVIEW
With decreasing number of launches every quarter, new unit launches in the year 2013 declined by 33% compared to 2012. In 4Q 2013, new launches were about 8,000 units, 18% less than the previous quarter. More than 60% of the new units launched in 4Q 2013 were in the affordable segment. Demand too remained sluggish in the fourth quarter with capital and rental values remaining stable over the previous quarter in all markets of NCR. The NCR witnessed Grade A Office space supply of over 4.0 msf in the fourth quarter, the highest in 2013. The quarter also witnessed pre-commitments of nearly 500,000 sf, majority by IT-ITeS and FMCG companies. At 1.7 msf, Grade A absorption also increased by more than four times over the previous quarter. Over the year, while the leasing activity was registered at 4.5 msf, net absorption was noted at 3.5 msf as a number of occupiers from the IT-ITeS sector relocated and consolidated operations to achieve cost and operational efficiencies in suburban locations. The fourth quarter of 2013 witnessed continued interest amongst retailers for quality mall spaces. With no new mall supply, the vacancy levels declined by 1.2 percentage points to 13.6%, from 14.7% in the previous quarter. Although a few prominent malls in South Delhi and Gurgaon saw high churn, especially in the apparels and Food & Beverages (F&B) categories, the rentals across micro markets maintained status quo on a q-o-q basis. However, mall rentals in most locations except Ghaziabad and West Delhi witnessed a y-o-y increase, due to limited availability and no new mall supply. Rentals across all main street locations remained unchanged over the previous quarter.
TRENDS AND UPDATES

Subdued transactions across South and Central Delhi led to stagnant capital values. Similarly, capital values remained stagnant in Gurgaon and Noida owing to continuous launches of new units at prevailing market rates. Rental values too remained stable in both mid and high-end segments across markets as landlords kept their focus on retaining tenants rather than increasing rents owing to increase in supply in the coming months.
37
Average Capital Values High End (INR '000/sf)

Location South-West South-East 2008 2009 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013
28.0 - 33.0 29.0 - 34.0 36.0 - 43.0 42.0 - 50.0 50.0 - 60.0 50.0 - 60.0 45.0 - 60.0 45.0 - 60.0 45.0 - 60.0 19.0 - 23.0 21.0 - 24.0 24.0 - 30.0 25.0 - 35.0 25.0 - 45.0 25.0 - 45.0 25.0 - 40.0 25.0 - 40.0 25.0 - 40.0
South Central 20.0 - 23.0 21.0 - 25.0 25.0 - 32.0 27.0 - 40.0 27.0 - 50.0 27.0 - 50.0 27.0 - 50.0 27.0 - 50.0 27.0 - 50.0 Central Gurgaon Noida 45.0 - 50.0 40.0 45.0 50.0 - 57.0 50.0 - 65.0 60.0 - 80.0 60.0 - 90.0 60.0 - 90.0 60.0 - 90.0 60.0 - 90.0 5.2 - 11.0 5.2 - 6.2 5.3 12.5 5.2 6.5 6.2 - 18.0 5.5 - 7.0 8.5 - 21.0 5.5 - 7.5 10.5 - 32.0 11.0 - 32.0 6.2 - 8.1 6.5 - 8.5 11.5 - 29.0 6.6 - 9.0 11.0 - 27.5 6.6 - 9.0 11.0 - 27.5 7.0 - 8.5
Average Capital Values Mid End (INR '000/sf)

Location South-East South Central Gurgaon Noida 2008 14.0 - 16.0 2009 14.5 - 16.5 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013
15.0 - 20.0 15.0 - 28.0 25.0 - 30.0 25.0 - 30.0 25.0 - 30.0 25.0 - 30.0 25.0 - 30.0
18.0 - 20.0 18.5 20.5 20.0 - 23.5 25.0 -30.0 25.0 - 35.0 25.0 - 35.0 25.0 - 35.0 25.0 - 35.0 25.0 - 35.0 3.8 - 5.2 3.0 - 4.5 4.0 6.5 3.2 5.5 4.5 - 7.5 3.8 - 5.6 5.0 - 9.0 4.2 - 5.8 6.8 - 10.5 4.3 - 6.2 6.8 - 11.5 4.5 - 6.2 7.5 - 11.5 4.5 - 6.5 7.5 - 11.5 4.5 - 6.5 7.5 - 11.5 5.0 - 6.0
Source: Cushman and Wakefield Research Note: The above values for mid-segment typically include units of 1,600-2,000 sf
Key to Locations:
High-end Segment: South-West: Shanti Niketan, Westend, Anand Niketan, Vasant Vihar South-East: Friends Colony East, Friends Colony West, Maharani Bagh, Greater Kailash - I, Greater Kailash II. South Central: Defence Colony, Anand Lok, Niti Bagh, Gulmohar Park, Hauz Khas Enclave, Safdarjung Development Area, Mayfair Gardens, Panchsheel Park, Soami Nagar, Sarvodaya Enclave. 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. Mid-Segment: South-East: New Friends Colony, Kalindi Colony, Ishwar Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave. South Central: Uday Park, Green Park, Saket, Asiad Village, Geetanjali Enclave, Safdarjung Enclave, Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar.

The new unit launches in the fourth quarter declined by 18% from the previous quarter. Approximately 80% of the new units were launched in Greater Noida, primarily in the affordable segment. Overall in 2013, most of the new units were launched in peripheral locations like Greater Noida (West), New Gurgaon and Dwarka Expressway, primarily in the affordable and mid-end segments. Many developers deferred the official launch of their projects to next year, with 8-10 projects being currently in the soft launch stage.
38
Project Name Allure Smart Homes (14th Avenue) Amaatra Homes Novena Greens Greenburg
Developer ATS Greens Gaursons Amaatra Group Sachdeva Buildcon+ Woodhill Homes Pvt. Ltd Microtek Group
Location Yamuna Expressway Sector 16 C, Greater Noida (West) Sector 10, Greater Noida (West) Techzone 4, Greater Noida (West) Sector 86, Gurgaon
Number of Units* Type 1,104 1,040 924 720 700 Apartments Apartments Apartments Apartments Apartments
Area of Units (in sf) 2 BHK: 1,150 3 BHK: 1,350 2 BHK: 760 to 960 3 BHK: 1,160 2 BHK: 1,048 to 1,179 3 BHK: 1,405 to 1,722 2 BHK: 1,050 to 1,225 3 BHK: 1,355 to 1,656 2 BHK: 1,480 3 BHK: 1,895 to 2,285 4 BHK: 3,005 3 BHK: 1,561 to 1,685 4 BHK: 1,818 to 1,885 2 BHK: 950 to 1,185 3 BHK: 1,280 to 1,860 3 BHK: 1,495 to 1,735 4 BHK: 2,690 2 BHK: 1,150 3 BHK: 1,395 to 1,575 2 BHK: 1,025 to 1,200 3 BHK: 1,400 1 BHK: 566 2 BHK: 900 to 1,105 3 BHK: 1,370 2 BHK: 1,475 to 1,600 3 BHK: 2,100 4 BHK: 3,620
Verasalia Greenshire Stadia MSA Circuit Heights Mahagun Mantra Kings Valley
Ansal API Nirala Group Civitech MSA Developers Pvt. Ltd Mahagun Dewa Coloniser Pvt. Ltd
Sector 67A, Gurgaon Sector 2, Greater Noida Sector 79, Noida Jaypee Sports City, Yamuna Expressway Sector 10, Noida Extension Sector 4, Greater Noida (West) Sector 70A, Gurgaon Sector 79, Gurgaon
660 646 528 512 506 421
Apartments Apartments Apartments Apartments Apartments Apartments
Kings Valley 48 Canvas
M3M Supertech
152 56
Apartments Apartments

Developers focussed on completing under construction projects and building market credibility. Owing to pile up of inventory and slow rate of uptakes, developers continued to offer discounts and attractive payment schemes to attract end-users and investors. More than 35 projects across Delhi-NCR are scheduled for completion in the next quarter. While some of them may get deferred to later dates, a sizeable amount of units are likely to be completed in 1Q 2014.

Supply in the fourth quarter increased by more than three times over the previous quarter. Approximately 50% of new supply was in commercial office space category, followed by 25% in IT Parks and 24% in IT SEZs. At 42%, the IT-ITES sector had the highest share of Grade A absorption, followed by Consulting (13%) and Engineering sectors (9%), amongst others. Although net absorption increased significantly in the fourth quarter, the total net absorption for the year recorded a decline of 20% from 2012, in the wake of
39
slow economic growth in the country. Even with increased net absorption in the fourth quarter, the overall vacancy level in Grade A properties increased by 1.8 percentage points as net absorption did not keep pace with the supply, which led to softening of rentals across most markets. However, over the year, weighted average rental values appreciated across all markets as supply with relatively lower rents saw absorption, resulting in mainly higher priced spaces being currently available.
Retail Sector
Both malls and main streets witnessed resizing and relocation of stores, with a number of national and international brands like Croma, Apple, The Collective, Westside, etc. strategizing their presence in the market to optimize costs. The rentals remained stable from the previous quarter in both malls and main streets. Over the year, rental values strengthened in select main street locations like Connaught Place, DLF Galleria (Gurgaon) and Rajouri Garden due to persistent demand and limited availability of quality stock.
Outlook
In the residential sector, capital and rental values are expected to stay stable in the forthcoming quarter due to the wait-and-watch strategy adopted by buyers. Gurgaon and Noida too are expected to witness stable rental and capital values in the coming months with prices moving marginally only in select locations or projects. Completion of projects is expected to put downward pressure on the prices of under-construction projects across Gurgaon and Noida. More than 2.8 msf of office space is scheduled for completion in the first quarter of 2014 across Delhi and Gurgaon, of which 60% belongs to commercial space category. Increasing vacancy levels and cautious sentiments among occupiers is likely to soften rentals across peripheral markets of the NCR. The next quarter is expected to witness an increase in churn of retail spaces as a number of leases will be due for renewals in prominent malls in South Delhi, possibly leading to a slight rental appreciation. Approximately 7.0 million square feet (msf) of new mall supply is scheduled for completion in the next year, which may adversely impact vacancy levels and rentals in micro markets where the new malls become operational. Steady demand in main street locations is likely to keep rentals unchanged during the next quarter.
40
Pune
MARKET OVERVIEW
Punes residential real estate market witnessed new launches of nearly 3,780 units in the last quarter of 2013, similar to the previous quarter depicting stability in launch activity. However the new unit launches declined 20% on a year-on-year (y-o-y) basis, mainly due to the slowdown in economic activity, which has resulted in a cautious approach being adopted by the developers. Mid-segment accounted for approximately 57% of new launches during the quarter. Capital and rental values continued to remain stable during this period, amidst the subdued demand. Commercial office space sector recorded a net absorption of nearly 470,000 sf during 4Q 2013, registering a decline of nearly 64% q-o-q. Grade A net absorption also fell by 76% to 290,000 sf during the same period, due to the slowdown in transaction activity. However, 2013 yearly trends indicated an improvement of 15% in net absorption for All Grades and 21% for Grade A spaces. The last quarter of 2013 saw an infusion of nearly 183,000 sf of commercial space. Overall vacancy levels dropped by 0.3 percentage points, due to higher net absorption compared to the new supply during the quarter. The retail sector rentals witnessed a mixed trend during this quarter. While rentals for most of the main street locations remained stable, mall spaces witnessed a slight correction in rental values. No new supply and stable transaction activity contributed to a q-o-q decline of 4.2 percentage points in mall vacancies.
TRENDS AND UPDATES

Overall, secondary markets witnessed stability in capital values during the quarter across the city, primarily due to subdued demand in the wake of overall economic slowdown. Only select prime projects witnessed a minor appreciation in resale capital values due to limited availability of similar ready projects by reputed developers in the locality. The quarter witnessed the completion of Phase I of Tuscan Estate in Kharadi, while Phase 2 for the same project was launched earlier during the second half of the year.
41
Average Capital Values High End (INR '000/sf)

Location 2008 2009 8.5 - 10.7 5.0 - 5.2 NA 7.3 - 9.2 3.3 - 3.6 2010 9.0 - 13.0 5.0 - 5.5 5.0 6.5 2011 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013
Koregaon Park, Boat Club 9.6 - 12.7 Aundh Baner Kalyani Nagar 4.9 - 6.1 NA 7.6 - 9.6
13.0 - 15.5 14.0 - 17.0 14.0 - 17.0 14.0 - 17.0 14.0 - 17.0 14.0 - 17.0 5.0 - 6.0 6.5 7.5 8.0 - 10.0 8.0 - 10.0 8.0 - 10.0 9.0 - 11.0 9.0 - 11.0
8.0 10.0 8.0 10.0 8.0 10.0 8.0 10.0 8.0 10.0 12.0 - 14.0 12.0 - 14.0 12.0 - 14.0 12.0 - 14.0 12.0 - 15.0 5.0 - 6.2 5.0 - 6.2 5.0 - 6.2 5.2 - 6.2 5.2 - 6.5
8.0 - 12.0 8.0 - 12.5 4.0 - 5.0 4.0 - 5.5
Wanowrie, NIBM, Kondhwa 3.4 - 4.5
Average Capital Values Mid End (INR '000/sf)

Location 2008 2009 4.5 - 5.5 3.6 - 4.2 2.9 - 3.6 2.2 - 2.8 4.5 - 5.5 2.8 - 3.1 2010 6.0 - 7.0 4.0 - 5.0 3.5 - 5.5 3.5 - 4.0 6.5 - 7.0 4.0 - 5.5 2011 6.0 - 7.0 4.5 - 5.5 4.0 - 5.5 3.7 - 4.5 6.5 - 7.5 4.0 - 5.5 2012 8.0 - 10.0 6.0 - 7.0 5.0 - 6.0 4.0 - 4.7 7.0 - 8.0 4.8 - 6.0 1Q 2013 8.0 - 10.0 6.0 - 7.0 5.0 - 6.0 4.0 - 4.7 7.0 - 8.0 4.8 - 6.0 2Q 2013 8.0 - 10.0 6.0 - 7.0 5.0 - 6.0 4.0 - 4.7 7.0 - 8.0 4.8 - 6.0 3Q 2013 8.0 - 10.0 6.0 - 8.0 5.5 - 6.5 4.5 - 5.5 7.0 - 8.0 4.8 - 6.0 4Q 2013 8.0 - 10.0 6.5 - 8.0 5.7 - 6.8 4.7 - 5.5 7.0 - 8.0 4.8 - 6.0
Koregaon Park, Boat Club 4.5 - 5.0 Aundh Baner Wakad Kalyani Nagar Wanowrie, NIBM Road, Kondhwa 3.5 - 4.0 3.0 - 3.8 2.5 - 3.0 4.5 - 5.5 3.0 - 3.2
Source: Cushman and Wakefield Research Note: The above values for mid segment typically include units of 1,200-1,400 sf

Nearly 3,780 units were launched in the fourth quarter of 2013, almost at par with the number of units launched in 3Q 2013. Mid-segment accounted for 57% of these new launches. Locations like Hinjewadi, Mahalunge and Bavdhan along the NH-4 Bypass stretch contributed 30% to new units launched during the quarter. Hadapsar and Mundhwa contributed 20%, followed by 15% contribution from South-eastern areas like NIBM, Kondhwa and Undri. Majority of the launches in this quarter were 2 BHK configurations with average sizes varying from 700-1,400 sf.
Number of Units* 798
Project Name Megapolis Mystic
Developer Pegasus Properties
Location Hinjewadi
Type Apartment
Area of Units (in sf) 2 BHK: 1,228 to 1,232 2.5 BHK: 1,432 3 BHK: 1,649 to 1,662 1 BHK: 686 2 BHK: 1,231 3 BHK: 1,529 4 BHK: 2,172 1 BHK: 611 2 BHK: 1,212 to 1,318 3 BHK: 1,723 to 1,775 3.5 BHK: 1,976 to 2,023 4 BHK: 2,550 to 2,562 1 BHK: 610 2 BHK: 740 to 953 2 BHK: 810 to 1,080 3 BHK: 1,314 to 1,351 1 BHK: 463 to 515 2 BHK: 694 to 758 3 BHK: 787 to 817
Amanora (Neo Towers)
Amanora
Hadapsar
545
Apartment
Metro Jazz
Elite Landmarks
Mahalunge
260
Apartment
Briz Ira Venkatesh Graffiti (Block B and E)
Gokhale Constructions Mantra Properties Shree Venkatesh Buildcon Pvt. Ltd
Pirangut Undri Mundhwa
250 194 193
42
Project Name Anshul Kosmas Ganesh Graceland Krishna Icon Phase II Raheja Vistas Premiere (Tower 6) Lodha Belmondo 24K Glamore ABIL Verde Orion Skywater Waterfront Homes Linea The Spires
Developer Anshul Realties Ganesh Developers Krishna Construction Company K Raheja Corp Lodha Group Kolte Patil ABIL Real Estate Sobha Developers Ravinanda Landmarks
Location Moshi Ambegaon Alandi NIBM Gahunje Undri Kalyani Nagar Kondhwa Wagholi
Number of Units* 184 164 160 160 136 132 128 112 84
Type Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment
Area of Units (in sf) 1 BHK: 660 2 BHK: 877 to 925 1 BHK: 695 2 BHK: 985 to 1,090 1 BHK: 652 to 657 2 BHK: 896 to 916 2 BHK: 1,335 3 BHK: 2,050 1 BHK : 700 3 BHK: 1,685 to 1,825 4 BHK: 2,095 to 2,300 3 BHK: 3,000 4 BHK: 4,000 1 BHK: 800 2 BHK: 1,100 to 1,400 1 BHK: 645 to 655 1.5 BHK: 840 2 BHK: 950 to 1,015 1 BHK: 545 to 810 2 BHK: 1050 to 1,110 3 BHK: 3433 4 BHK: 3,799 to 3,817 4.5 BHK: 4,190 to 4,582 1 BHK: 600 to 700 2 BHK: 800 to 1,647 3.5 BHK: 3,500 5.5 BHK: 5,500 2 BHK: 977 to 1,052 4.5 BHK: 3,080
Dynamic Realty Pride Purple Group
Wagholi Baner
72 62
Apartment Apartment
Vela Enclave Gera Isle Royale Dahlia (Villas) Pristine Pacific Phase III Gera Isle Royale Verbana (Apartments)
Natraj Group Gera Pristine Properties Gera
Lohegaon Bavdhan Ambegaon Bavdhan
56 36 32 24
Apartment Villas Apartment Apartment

Areas like Hinjewadi, Balewadi, Bavdhan, Wakad and Mahalunge along the NH-4 Bypass, Kharadi and Wagholi in the North-east witnessed tremendous construction activity. High-end capital values witnessed a slight appreciation in Kalyani Nagar due to the launch of a prime project in the locality, which commanded a higher base price. South-eastern areas like Wanowrie, NIBM and Kondhwa also witnessed a slight upward revision in capital values due to launch of new projects with better amenities. Mid-end capital values continued to remain stable during the quarter with a slight upward revision in lower limit of capital values range for micro-markets like Aundh, Baner and Wakad.

Pune witnessed 928,000 sf of leasing activity during the quarter, nearly 72% of which was in Grade A spaces. The net absorption during the quarter totalled to approximately 470,000 sf indicating a prevalent trend of relocation and consolidation amongst occupiers. Though the quarterly trends recorded a decline in leasing and net absorption, the yearly numbers depicted a 36% and 15% rise in leasing and net absorption respectively. Majority of the activity during 4Q 2013 was concentrated in Hadapsar, Kharadi and Viman Nagar. The IT-ITeS sector contributed to 58% of the absorption, followed by 17% by the BFSI sector. Quoted rentals remained stable, while the dip in vacancy levels contributed to a marginal fluctuation in the weighted average rentals across micro markets.
43
Retail Sector
Mall rentals in locations like Nagar Road and Camp remained stable while those in Koregaon Park, Ganeshkhind Road and Hadapsar registered a decline of 4% to 9% during 4Q 2013, primarily due to subdued demand. Nagar Road continued to be the preferred mall location during the year, due to presence of quality malls with a good tenant mix. Main street rentals remained stable across majority of the micro markets in the city, except Koregaon Park and Mahatma Gandhi (MG) Road which witnessed 3-4 % downward q-o-q revision due to existing demand-supply dynamics. Increase in demand from Food & Beverages (F&B) retailers and youth-centric brands contributed to 4% quarterly appreciation in Fergusson College (FC) Road rentals. Overall vacancy levels in malls across the city declined by 4.2 percentage points in 4Q 2013 due to lack of new supply and good leasing activity.
Outlook
Capital and rental values are expected to remain stable in the coming months till the demand picks up and the economic scenario improves. However, launch activity in 2014 is likely to be at par with 2013. Majority of these launches are likely to be concentrated in suburban and peripheral locations such as Wagholi, Baner, Hadapsar, Undri, Pisoli, Kondhwa and along the NH-4 Bypass stretch. Approximately 5.7 msf of office space supply is expected to be completed next year, which is likely to increase vacancies across submarkets considering that the transaction activity is likely to remain at par with the current year. Near 2.3 msf of supply is Rentals for main street locations are expected to remain stable in the near future, except Koregaon Park which might witness a slight correction in rentals due to subdued demand. Mall rentals in Koregaon Park and Ganeshkhind Road are also expected to remain under pressure due to subdued demand. Vacancies are expected to increase amidst stable transaction activity and 780,000 sf of supply expected in 2014. expected to be delivered in 1Q 2014, with rentals likely to remain stable in the coming months. The ITITeS sector is expected to continue driving the market activity in the near future.
44
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CB Property Insights Q4 2013

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CB Property Insights Q4 2013

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PROPERTY INSIGHTS

India Quarter 4, 2013

Sluggish Market, Slightly Positive Outlook

GROSS DOMESTIC PRODUCT GROWTH RATE

Trends & Updates

EXCHANGE RATE MOVEMENT (INR/USD)

increases in food prices, non-food and non-fuel

BSE REALTY INDEX

FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR

recovery from 4.4% growth registered in the April-

RESIDENTIAL CAPITAL VALUES GROWTH INDEX

NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 4Q 2013

READY RESIDENTIAL PROPERTY VALUES IN DECEMBER '13

Trends & Updates

New Residential Launches

Location S.G. Highway

Number of Units* 2,300

Gopinath Developers Narayankrupa Infra Ratan Infracon

* Estimated and as per market information

Under Construction Residential Property Update

Commercial Office Sector

READY RESIDENTIAL PROPERTY VALUES IN DECEMBER '13

Trends And Updates

Average Capital Values High-end (INR000/sf)

Off-Central 6.5 - 7.5 East North 6.5 - 9.0 6.0 - 8.0

Average Capital Values Mid-Segment (INR000/sf)

New Residential Launches

Number of Units* 1,319

SJR Blue Waters

Shriram Chirping Woods Monarch Aqua

Sumadhura Silver Ripples Prabhavati Daffodils

Whitefield Off Sarjapur Road

Orchid Woods Nitesh British Columbia Golden Panorama

Hennur Road Kanakpura Road Kanakpura Road

392 388 363

Apartment Apartment Apartment

Apartment Apartment Apartment Apartment Apartment Apartment Apartment

Off Old Airport Road

143 138 133 120 117 112 108 100

Apartment Villas Apartment Apartment Apartment Villas Apartment Apartment

Apartment Apartment Apartment Apartment Apartment Villas Villas

* Estimated and as per market information

Under Construction Residential Property Update

Commercial Office Sector

READY RESIDENTIAL PROPERTY VALUES IN DECEMBER '13

Trends And Updates

Average Capital Values High End (INR)

Average Capital Values Mid Range (INR/sf )

New Residential Launches

Under Construction Residential Property Update

Commercial Office Sector

READY RESIDENTIAL PROPERTY VALUES IN DECEMBER '13

Trends And Updates

Average Capital Values High End (INR 000/sf)

Average Capital Values Mid Segment (INR 000/sf)

New Residential Launches

Project Name Mahidhara Supreme . Phase I Aashira Phase I

Developer Mahidhara Projects Malles Construction

Location Oragadam Perumbakkam

Number of Units* 400 384

Type Villas Apartments

Love Blue Bells

Vijay Shanthi Builders Shri Janani Homes (P) Ltd.

Mambakkam, Sriperumbudur Padur