india residential property market overview may 2013

Accelerating success.

INDIA

QUARTERLY UPDATE | MAY | 2013

Residential Property Market Overview

www.colliers.com

reseArch & forecAst reportSYDNEY CENTRAL BUSINESS DISTRICT

IndIA resIdentIAL mArketRESEARCh & foRECAST REpoRT

INDIA | MAY 2013 | residential

www.colliers.com

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

ECoNoMIC BARoMETER

RETURN oN ALTERNATIvE INvESTMENTS

Apr-12 Apr-13

repo rAte 8.00% 7.50%

reVerse repo rAte 7.00% 6.50%

crr 4.75% 4.00%

InfLAtIon 7.50% 5.96%

home LoAn rAte 11.00% 9.95%

Apr-12 Apr-13 YoY %

Change

GoLd 28,423 26,450 -6.94%

sILVer 55,582 45,117 -18.83%

fIxed deposIt 9.00% 8.25% -8.33%

eQUItY 17,151 18,358 7.04%

reALtY Index 1,781 1,803 1.24%

3

4

2

1

repo rate cash reserve ratio Wholesale price Index

ECoNoMIC INDICAToRS

In p

erce

ntag

e

MACRo ECoNoMIC ovERvIEW

As per the latest reserve Bank of India (rBI) projections, the Gdp growth rate was recorded at •4.5% for the third quarter (october - december 2012), the lowest in the last decade. the revised projection from the rBI for fY 2013 - 14 stands at 5.7%.

the provisional Wholesale price Index (WpI) declined to 5.96% for march 2013, as compared to •7.96% for the corresponding month in the previous year. this decline was primarily due to the decrease in food price inflation.

the central bank reduced the repo rate by 25 basis points from 7.75 to 7.50% in April 2013 to •induce much needed liquidity in the market. subsequently, a few nationalised and private banks such as the state Bank of India, canara Bank, housing development finance corporation Ltd (hdfc) and Axis Bank reduced their home loan rates marginally in the range of 5 to 25 basis points.

the Government of India, in its latest Union Budget, has allocated Inr 2,000 crore for creation •of an Urban housing fund at the national housing Bank. the fund has been created to provide housing finance at competitive rates in urban areas.

coLLIers VIeW:• the residential market gained traction in cities such as mumbai, Bangalore, kolkata and pune, though the ncr market and chennai recorded steady growth during the quarter. projects in affordable segments with the right price points witnessed high absorption due to an overwhelming response from both investors and end users. capital values of premium residential properties in major cities of India displayed a marginal increase in the range of 2 to 7% QoQ. We anticipate increased activity in the primary sales market in the coming quarters with numerous new launches across the cities.

4.0

3.0

6.0

5.0

8.0

9.0

7.0

11.0

10.0

12.0

Apr

‘09

feb

‘09

dec‘

09

Apr‘1

1

Apr‘1

2

Apr

‘13

feb‘

11

Jun

‘09

Jun‘

10

Apr‘1

0

feb‘

10

Jun‘

11

Jun‘

12

Aug’

08

jun’

08

Apr

‘08

Aug‘

09

Aug‘

10

Aug‘

11

Aug‘

12

dec’

08

oct

‘08

oct

‘09

dec‘

10

oct

‘10

oct

‘11

oct

‘12

feb‘

12

feb‘

13

dec‘

11

dec‘

12

2.0

1.0

0.0

-1.0

-2.0

Source: Goverment of India, Colliers International India Research

CoLLIERS INTERNATIoNAL | p. 3

mUmBAI

KeY neW PrOJeCts

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

Alpine kandivali sd corp 4Q 2015 11,150

sevens Andheri east kanakia spaces 4Q 2016 12,500

prithvii Ghatkopar west rohan Lifescapes 4Q 2016 12,000

Western heights Andheri West Adani Group 4Q 2016 16,000

CITY offICE BARoMETER

1Q 2012 2Q 2013

capital Value

rental Value

new project

construction pace

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

MUMBAI

during 1Q 2013, the city’s residential market •witnessed launches of premium residential projects in micro-markets like parel, Wadala and santacruz, priced in the range of Inr 16,000 - 20,000 per sq ft. A number of redevelopment projects were also launched in the western suburbs.

demand in the primary market increased •during the quarter. the project launched witnessed good absorption due to right price points. moreover, the 20-80 payment plans adopted by developers like Lodha Group, Bombay dyeing and ekta group got buyer interest due to ease of payment.

capital values for premium residential •properties in the central and western suburbs witnessed a marginal increase QoQ in the range of 1-3%, while capital values remained stable in prime locations in south mumbai.

rental values remained under marginal •pressure and recorded a 1-4% decrease QoQ in almost all micro-markets, except for locations such as colaba, cuffe parade, Bandra, santacruz and Juhu.

the mumbai metropolitan region development •Authority (mmrdA) has planned to build a 1.6 km elevated road from the Bandra-kurla complex to the eastern express highway.

coLLIers VIeW:• the primary sales market continued to observe the end user demand. the festive season of Gudi padwa also helped to revive the overall sentiments in the residential market. In medium term we anticipate increase in activity in the primary sales market with numerous launches in line however, resale market will continue to show a signs of stagnancy because of high price points.

0

10,000

20,000

30,000

40,000

60,000

70,000

50,000

80,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13f

3Q20

13f

1Q20

11

3Q20

11

80,000

40,000

50,000

70,000

60,000

10,000

20,000

30,000

0

Micro Market ongoing price (p.S.f)

thane-kalyan 4,000 - 8,000

navi mumbai 3,500 - 7,500

Virar- Boisar 3,000 - 6,000


cola

ba, c

uffe

para

de

colaba, cuffe parade

mal

abar

hill

, Alta

mou

nt

road

, car

mic

hael

roa

d

malabar hill, Altamount road, carmichael road

Wor

li

Worli

Brea

ch c

andy

, nap

eans

earo

ad, p

edda

r ro

ad

Breach candy, napeansearoad, peddar road

prab

hade

vi

prabhadevi

Band

ra

Bandra

sant

acru

z

santacruz

Andh

eri

Andheri

pow

ai

powai

khar

khar

Juhu

Juhu

200

150

100

50

0

powai

khar

prabhadevi

Breach candy, napeansea road, peddar road

malabar hill, Altamount road, carmichael road

colaba, cuffe parade

Bandra

Juhu

Andheri

Worli

santacruz

Inr

per

sq.ft

.

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

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

AvERAGE CApITAL vALUE RANGE

AvERAGE RENTAL vALUE

AvERAGE CApITAL vALUE TRENDS

INvESTMENT oppoRTUNITIES

p. 4 | CoLLIERS INTERNATIoNAL


deLhI

KeY OnGOinG PrOJeCts


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

castlewood okhla Indiabulls Ltd. 4Q 2013 12,800

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

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

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


1Q 2013 2Q 2013

capital Value

rental Value

new project

construction pace

DELhI

In 1Q 2013, limited supply was added to the •city’s premium residential inventory. A few small-scale redevelopment projects were ready for possession in locations like Vasant Vihar, Anand niketan, shanti niketan and defence colony.

capital values for premium residential •properties appreciated in the range of 2-7% QoQ in micro-markets like chanakyapuri, friends colony and maharani Bagh. the rest of the micro-markets remained stable.

rental values for premium residential •properties remained stable with marginal downward pressure in micro-markets like shanti niketan, Westend, panchashila, Anand lok, niti Bagh, sdA, Greater kailash I and II, south extension, Anand niketan and Vasant Vihar.

the delhi development Authority (ddA) has •approved its land pooling policy, which allows developers or land owners to pool their land to develop new areas. the developer or owner is required to surrender a stipulated portion of their land to the ddA for infrastructure development, as well as for green and open space. the policy also mandates the retention of a portion of land for economically weaker sections.

coLLIers VIeW:• developers are adopting a wait-and-watch attitude in view of the new master plan, which is anticipated to facilitate vertical growth in the city and introduce additional new supply in the long-term. moreover, the future phases of the delhi metro project, and other infrastructure developments across the city, will provide a boost to the real estate sector.

15,000

0

30,000

45,000

75,000

90,000

105,000

60,000

120,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

Inr

per

sq.ft

.

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13f

3Q20

13f

1Q20

14f

1Q20

11

3Q20

1140,000

50,000

60,000

70,000

80,000

100,000

90,000

30,000

20,000

10,000

0

Anan

d ni

keta

n,

Vasa

nt V

ihar

Anand niketan, Vasant Vihar

panc

hash

ila, A

nand

lok,

niti

Bagh

, sdA

panchashila, Anandlok, niti Bagh, sdA

frie

nds

colo

ny,

mah

aran

i Ba

gh

friends colony, maharani Bagh

shan

ti ni

keta

n,

Wes

tend

shanti niketan, Westend

Grea

ter

kaila

sh

I & II

, sou

th

exte

nsio

n

Greater kailash I & II, south

extension

Golf

Link

s, J

or B

agh,

su

nder

nag

ar

Golf Links, Jor Bagh, sunder nagar

chan

akya

pur

i

chanakya puri

prith

vira

j roa

d,

Aura

ngze

b ro

ad

prithviraj road, Aurangzeb road

200

160

120

80

40

0

Golf Links, Jor Bagh, sunder nagar

panchashila, Anandlok, niti Bagh, sdA

Greater kailash I & II, south extension

chanakya puri shanti niketan, Westend

friends colony, maharani Bagh

prithviraj road, Aurangzeb road

Anand niketan, Vasant Vihar








GUrGAon


1Q 2013 2Q 2013

capital Value

rental Value

new project

construction pace


GURGAoN

In 1Q 2013, a number of new premium •residential projects and project phases were launched. these projects were priced in the range of Inr 5,000 - 9,000 per sq ft in micro-markets such as new Gurgaon and dwaraka expressway.

Absorption remained restrained due to high •price-points in both the primary and secondary sales markets, while a few select projects witnessed an over whelming response from both investors and end-users in primary markets. the dwarka expressway and new Gurgaon sectors from 80-92 remained the most active.

capital values in the secondary premium •residential market witnessed a marginal appreciation QoQ in the range of 5-7% in select projects at dwarka expressway. the remaining micro-markets witnessed marginal appreciation in the range of 2-3% during the quarter.

rental values witnessed a QoQ increase •in the range of 3-6% in most of the micro-markets because of the limited ready to move properties in the premium segment.

haryana’s state Government has approved •a nine-kilometre four-lane corridor from mehurali-Gurgaon road to Gurgaon-faridabad road. the objective of this road is to decongest traffic and improve the connectivity between the cities.

coLLIers VIeW:• the increased investor participation resulted in increased resale inventory stock. In near term, the higher price points will confine the end-user as well as investor activity in the established residential micro markets. the emerging micro markets such as dawarka expressway, new Gurgaon will continue to hold the interest of buyers while price are expected to remain more or less at the same level.

0

5,000

15,000

10,000

20,000

25,000

30,000

35,000

45,000

40,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

Inr

per

sq.ft

.

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13f

1Q20

14f

3Q20

13f

1Q20

11

3Q20

116,000

8,000

10,000

12,000

14,000

16,000

18,000

4,000

2,000

0


Golf course extension road 7,500 - 8,500

sohna extension 5,000 - 6,500

pataudi road 4,500 - 5,500

new Gurgaon 3,500 - 4,500

80

60

40

20

0

Golf

cour

se r

oad

Golf course road

sohn

a ro

ad &

ext

sohna road & ext

dLf

phas

e I

dLf phase I

sush

ant L

ok

sushant Lok

nh -

8

nh - 8

dLf phase Inh-8

Golf course road sushant Lok

sohna road & ext

KeY neW PrOJeCts


ekantum sector 112 emaar mGf 4Q 2017 9,000

emerald Bay sector 104 puri construction 4Q 2016 7,250

Grande sector 92 sare homes 4Q 2017 5,250

sanskriti sector 92 Bestech Group 4Q 2016 5,750









noIdA

CITY offICE BARoMETER1Q 2013 2Q 2013

capital Value

rental Value

new project

construction pace


NoIDA

A few new projects were launched in 1Q •2013. most of them were new towers in existing projects in sectors along the noIdA expressway, and were priced in the range of Inr 4,500 - 7,000 per sq ft.

this quarter witnessed limited additional •supply in the city’s residential stock, as few under-construction projects offered ready-for-possession units.

capital values for premium residential •properties in the secondary market increased marginally in the range of 2-4% QoQ, while micro-markets like sector 61-63 remained stable. this could be due to the limited activity in the secondary sales-market in established areas. Buyers now prefer new projects with a modern amenities.

rental values during this quarter remained •unchanged across all micro-markets; new projects were in demand because of the state-of-an-art facilities and amenities they offered.

during 1Q 2013, in a major infrastructure push •the local government authorities of noIdA and Greater noIdA have cleared more than 29 km of metro rail project between noIdA and Greater noIdA. total cost of the entire project is expected to be around Inr 5,500 crore. this will further improve the connectivity and boost the real estate activities between the two sister cities.

coLLIers VIeW:• In mid term, the market will be dominated by mid-range buyers, primarily because of the affordability quotient. prices are expected to see moderate appreciation, in view of large upcoming inventory and new project launches.

5,000

2,000

8,000

11,000

17,000

14,000

20,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

3Q20

09

1Q20

10

3Q20

12

1Q20

13

3Q20

13f

1Q20

14f

1Q20

11

3Q20

10

1Q20

12

3Q20

11

12,000

10,500

9,000

7,500

6,000

4,500

3,000

1.500

0


noIdA expressway 3,800 - 5,500

sector 72 - 78 4,500 - 5,800

sector 117 - 121 4,000 - 5,000


40

30

20

10

0

sect

or 2

8, 2

9, 3

0

sector 28, 29, 30

sect

or 9

2/93

sector 92/93

sect

or 6

1, 62

., 63

sector 61, 62., 63

sect

or 5

0

sector 50

sect

or 4

4

sector 44

sector 61,62,63

sector 92 / 93 sector 28,29,30

sector 50 sector 44

Inr

per

sq.ft

.







KeY OnGOinG PrOJeCts


panchsheel pratishtha sector 75 panchsheel Group 4Q 2016 4,600

the palms sector 117 Unitech Ltd. 4Q 2016 5,000

maxblis Grand kingston sector 75 maxblis construction pvt. Ltd. 2Q 2016 4,900

Victory Ace sector 143B Victory Group 4Q 2016 4,800

eldeco Inspire sector 119 eldeco Group 4Q 2016 4,500

prateek edifice sector 107 prateek Group 4Q 2016 6,950


india | MAY 2013 | REsIDENTIAL

KeY neW PrOJeCts


Albatross egattur Archean design & development 4Q 2015 6,000 - 7,000

krona (ph II) porur VGn developers 4Q 2015 4,300

meritta kelambakkam, omr sobha developers 4Q 2016 5,000

pacifica Aurum omr pacifica Group 4Q 2015 3,400

serene porur sobha developers 4Q 2016 4,800

solitaire West mambalam casa Grande 4Q 2015 13,500


chennAI

1Q 2013 2Q 2013

capital Value

rental Value

new project

construction pace


ChENNAI

In 1Q 2013, numerous new projects were •launched in the city. old mahabalipuram road (omr), porur, ponamalee, Ambattur, sriperumbudur, orgadamand egattur have witnessed the most new launches. most of these projects were priced in the range of Inr 3,400 – 7,000 per sqft.

there was limited supply in the city in micro-•markets such as Gst road, omr, Anna nagar, poes Garden, Boat club road, rk salai and thiruvanmiyur, due to the completion of a number of small projects. In these markets most of the mid-range projects were available for resale in the price band of Inr 7,000 – 12,000 per sqft , while premium projects were priced in the range of Inr 14,000 – 30,000 per sq ft .

capital values were increased in the range of •3-5 % in almost all the micro-markets, except for areas like Beasant nagar, Alwarpet / r A puram and Velachery, where capital values remained stable.

rental values witnessed an increase in the •range of 4 -5% in almost all micro-markets.

the local civic Authorities have allocated a •budget over Inr 900 crore for roads, parks and other works; Inr 450 crore for storm-water drains and Inr 31.15 crore for bridges. the key focus is to decongest city roads and improve the overall city’s infrastructure.

coLLIers VIeW:• city premium residential market has been growing at steady pace. many developers have launched new projects across the city. Going ahead, locations along with omr and Gst road would remain active in terms of number of new project launches because of sustained It/Ites development and planned infrastructure like metro project and mono rail projects in these locations.

Adya

r

Anna

nag

ar

nung

amba

kkam

Alw

arpe

t / r

A p

uram

Vela

cher

y

shol

inga

nallu

r

siru

seri/

ka

zipa

ttur

t na

gar

Beas

ant

naga

r

Boat

clu

b

6,000

2,000

10,000

18,000

14,000

22,000

26,000

30,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

sholinganallur

Velachery

Alwarpet / r A puram

t nagar

Beasant nagar

Adyar

Anna nagar

nungambakkam

Boat club

siruseri/ kazipattur

Boat club

siruseri/ kazipattur

Velachery

sholinganallur

Anna nagar

t nagar

AdyarBeasant nagar

nugambakkam

Alwarpet / r A puram

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13f

3Q20

13f

1Q20

14f

1Q20

11

3Q20

11

25,000

21,000

17,000

13,000

9,000

5,000

1,000


Velachery 5,000 - 7,000

sholinganallur 3,500 - 4,200

siruseri/ kazipattur 2,500 - 3,900

Inr

per

sq.ft

.

75

60

45

30

15

0









BenGALUrU

KeY neW PrOJeCts


mantri Web city hennur road mantri developers 4Q 2016 4,490

prestige spencer heights frazer town prestige Group 4Q 2015 14,000

samrudhi rhythm off hosur road samrudhi developers 4Q 2015 3,450

sJr plazza city sarjapur road sJr Group 4Q 2016 4,302

tata haven tumkur road tata developers 4Q 2016 3,125

the Greens hosur road Indya estates 4Q 2016 2,375



1Q 2013 2Q 2013

capital Value

rental Value

new project

construction pace


BENGALURU (BANGALoRE)

In 1Q 2013, the Bangalore residential market •has seen a number of new launches in micro-markets such as hosur road, hennur road, tumkur road and sarjapur road. these new launches were priced in the range of Inr 3,100-5,000 per sq ft, except prestige spencer heights located at frazer town, which was priced Inr 14,000 per sq ft.

the city witnessed additional new supply as •a number of completed projects and project phases were finalised this quarter, including skyline Ambrosia, regency chandra, Vaishnavi symphony, esteem enclave, century celesta, skylark Zenith and Legacy Ariston.

capital values for premium residential •properties witnessed an increase in the range of 2-9% QoQ in almost all micro-markets, except Bannerghatta road where capital values remained stable.

rental values also appreciated in the range of •1-9% in almost all micro-markets; however locations like cooke town, Airport road and Indiranagar remained stable.

In order to reduce congestion and boost •real estate activities in Bangalore, the state government and the Asian development Bank have decided to develop eight new residential and industrial clusters in the ramanagaram-channapatna, kanakapura-nelamangala, dobbspet-peenya, doddaballapur, Anekal-Jigani-Attibele, devanahalli-Vijayapura, magadi and hoskote- krishnarajapuram micro-markets.

coLLIers VIeW:• the city’s residential market witnessed healthy demand both from investors and end-users. We anticipate that the city will see a number of new launches in both premium and mid-range categories in the medium-term. Given the number of new launches, it is anticipated that prices will see appreciation in the near-to mid-term.

4,000

0

8,000

16,000

12,000

20,000

24,000

28,000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth


25,000

20,000

15,000

10,000

5,000

0



Airport road 5,000 - 6,000

Bannerghatta road 4,200 - 6,000

Whitefield 4,400 - 6,700

Yelahanka 3,800 - 6,000

Yela

hank

a

Yelahanka

Bann

ergh

atta

roa

d

Whitefield (Appts)

Airp

ort r

oad

koramangala

Whi

tefie

ld

Bannerghatta road

Jaya

naga

r

Indiranagar

cook

e to

wn

Airport road

kora

man

gala

palace orchard

Indi

rana

gar

Jayanagar

pala

ce o

rcha

rd

cooke town

cent

ral

central80

60

40

20

0

1Q20

08

3Q20

08

1Q20

10

1Q20

09

3Q20

09

3Q20

10

1Q20

11

3Q20

12

1Q20

13

3Q20

13f

1Q20

14f

1Q20

12

3Q20

11

central

Yelahanka

koramangala

Indiranagar

Jayanagar

Bannerghatta road

palace orchard

cooke town

Airport road

Whitefield

Inr

per

sq.ft

.





INDIA | MAY 2013 | resiedential

koLkAtA

KeY neW PrOJeCts


Arihant Viento` tangra Arihant Group 2016 5,800

Arti Green Valley Garia Arti Group 2017 2,400

mayfair Bloom Jagaddal mayfair Group 2015 2,280

mayfair Whitefield narendrapur mayfair Group 2015 2,350

signum Gardenia Bondel road heritage realty Group 2016 6,000

tirupati paradise sonarpur tirupati Awas 2016 2,014




1Q 2013 2Q 2013

capital Value

rental Value

new project

construction pace


koLkATA

during 1Q 2013, the city’s residential market •witnessed an increase in new premium project launches in locations like Garia, sonarpur, Bondel road, tangra, narendrapur howrah and Jagaddal. most of these projects were priced in the range of Inr 2,400 - 6,000 per sq ft.

construction activities remain healthy, with •the completion of numerous residential projects like sunny dale and sunny dew II by starlite Group, located at em Bypass and Garia respectively, and 4 sight model town by Ganguly Group and hindustan enclave by somani realtors, located at Garia.

demand for residential properties from end •users and investors picked up this quarter, and newly launched projects witnessed high absorption. capital values increased in the range of 2-7% QoQ in almost all micro-markets. similarly, rental values also witnessed an increase in the range of 2-5% QoQ across the city.

In order to boost the city’s infrastructure and •ease out the traffic conditions between em Bypass and science city, the construction work of subway taken up by the state Government has been completed in a record time of just 29 days.

coLLIers VIeW:• residential sales volumes are expected to gain momentum in the near-term. peripheral locations such as tollygaunge, Behala, salt Lake, em Bypass and new town rajarhat will see increased activity, due to their affordability quotient. overall, capital and rental values are expected to remain stable in the near future, except for south kolkata due to the limited supply in this area.

3,000

1,000

7,000

5,000

11,000

9,000

13,000

15,000

17,000

Inr

per

sq.ft

.


2,000

4,000

0

6,000

8,000

10,000

12,000

14,000

16,000



tollygunge 3,600 - 4,800

Behela 2,900 - 3,700

salt Lake 4,000 - 5,500

em Bypass 4,000 - 7,000

new town -rajarhat 3,200 - 4,600

Bhaw

anip

ur

Bhawanipur

pA s

hah

road

pA shah road

tolly

gung

e

tollygunge

Loud

on s

tree

t

Loudon street

Behe

la

Behela

Alip

ore

Alipore

em B

ypas

s

em Bypass

Bally

gung

e

Ballygunge

salt

Lake

salt Lake

VIp

road

VIp road

new

tow

n ra

jarh

at

new town rajarhat

Bhawanipur

em Bypass

Ballygunge

Behela

tollygunge

p A shah road

new town - rajarhat

Loudon street

Alipore

VIp road

salt Lake

1Q20

08

3Q20

08

1Q20

10

1Q20

09

3Q20

09

3Q20

10

1Q20

11

3Q20

12

1Q20

13

3Q20

13f

1Q20

14f

1Q20

12

3Q20

11

Inr

per

sq.ft

.

40

30

20

10

0


Inr

per

sq.ft

. per

mon

th



INDIA | MAY 2013 | resiedential

pUne

KeY neW PrOJeCts


9 sadashiv sadashiv peth pinnacle Group 1Q 2015 12,000

Imperium Balewadi madhumita construc-tions 2Q 2014 5,850

nyati epitome nIBm nyati Group 4Q 2016 5,200

palm one kondhwa nobles Group 1Q 2015 5,100

pittie kourtyard kharadi raja Bahadur Interna-tional Ltd. 1Q 2014 5,000

privie sienna hadapsar kumar properties 3Q 2013 5,999




1Q 2013 2Q 2013

capital Value

rental Value

new project

construction pace


pUNE

In 1Q 2013, new residential projects were •launched in locations like Baner-Balewadi, kondhwa, kharadi-hadapsar, koregaon park, Wakad, nIBm and taleagon. these new launches were priced between Inr 3,500-6,000 per sq ft , with the exception of luxury projects quoting Inr 10,000 - 12,000 per sq ft.

this quarter witnessed a slight slowdown •in construction activity, further delaying completion of projects.

overall, capital prices in pune remained •stagnant in most micro-markets in comparison with 4Q. however the 10-20% hike in the ready-reckoner-rate resulted in price adjustments in the range of 2-8% in areas like magarpatta-hadapsar, Baner-pashan, hinjewadi, Wakad, Warje, pimpri-chinchwad and chakan.

this quarter’s rental values remained fairly •stable in almost all of the micro-markets in pune.

the state Government proposed the provision •of funds in the Union Budget 2013-2014 for two corridors of the metro rail project in pune and pimpri-chinchwad, between Vanaz and ramwadi, and between nigdi and swargate.

coLLIers VIeW:• pune’s residential market continues to remain strong, led by the It industry’s housing demand. Luxury projects offering modern amenities and retained green areas is the latest demand trend. Being the well-established residential hubs, hadapsar and kharadi continue to be the preferred locations, next to prime central areas, followed by the Baner-pashan stretch, due to competitive pricing and their close proximity to hinjewadi. northern areas of chakan, like talegaon and ravet are potential residential hotspots for growth due tothe promotion of seZs and the planned pune metro rail project.

1,000

3,000

7,000

5,000

9,000

13,000

11,000

15,000

Inr

per

sq.ft

.


11,000

10,000

8,000

9,000

7,000

6,000

5,000

4,000

3,000

2,000



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

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

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

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

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

kaly

ani n

agar

/Vi-

man

nag

ar/k

hara

di

Bhaw

anip

ur

kalyani nagar/Viman nagar/kharadi Bhawanipur

decc

an/c

amp/

Boat

clu

b

deccan/camp/Boat club

Bane

r/h

inje

wad

i/W

akad

/pas

han

Baner/hinjewadi/Wakad/pashan

mag

arpa

tta/h

adap

sar

magarpatta/hadapsar

nIBm

/Und

ri/ko

ndhw

a

nIBm/Undri/kondhwa

koth

rud/

Bavd

han/

Waj

re

kothrud/ Bavdhan/ Wajre

pim

pri/c

hinc

hwad

/ch

akan

pimpri/chinchwad/chakan

30

25

20

15

10

5

0

1Q20

09

3Q20

09

1Q20

10

3Q20

10

1Q20

11

3Q20

11

3Q20

12f

1Q20

14f

1Q20

13

3Q20

12

1Q20

12

kalyani nagar/Viman nagar/kharadi

kothrud/Bavdhan/Wajre

nIBm/Undri/kondhwa

pimpri/chinchwad/chakan

deccan/camp/Boat club/central pune

magarpatta/hadapsar

Baner/hinjewadi/Wakad/pashan

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth




india | MAY 2013 | REsIDENTIAL | sUbMARkETs

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

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

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

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

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

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

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

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

RESIDENTIAL SUBMARkETS

CITY BARoMETERS

Increasing as compared to previous quarter

decreasing as compared to previous quarter

remained stable from previous quarter

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

www.colliers.com/india

for national residential services related queries please contact:

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

This book is printed on 100% Recyclable paper

india | MAY 2013


aUtHOrs

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

surabhi arora MriCsAssociate director, researchemail: [email protected]

sachin sharmaAssistant manager, researchemail: [email protected]

Heliana ManoAssistant manager, research email: [email protected]

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

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

© copyright 2012 - 2013 All rights reserved.

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recent reports : GLoBAL retAIL IndIA offIce IndIA resIdentIAL ApAc offIce GLoBAL retAIL IndIA BUdGet 2012-13

OFFICE PROPERTY MARKET OVERVIEW INDIA

QUARTERLY UPDATE | APRIL | 2013

Accelerating success. Accelerating success.

INDIA

QUARTERLY UPDATE | FEBRUARY | 2013

Residential Property Market Overview ASIA PACIFIC

OFFICE MARKET OVERVIEW3Q 2012


STREET/PRECINCTRENT

(USD)**

ANNUAL CHANGE

(%)

New York – Fifth Avenue ��,�� .�

Hong Kong – Queen's Road Central, Central (tie)

��,�� .�

Hong Kong – Canton Road (tie)

��,�� .�

London – Old Bond St.*** ��,�� .�

Paris – Avenue des*** Champs-Élysées

��,�� flat

Hong Kong - Causeway Bay

��,�� .�

New York – Madison Avenue

�� .�

Zurich – Bahnhofstrasse �� flat

Milan – Via Monte Napoleone

�� (�.�)

Sydney – Pitt Street Mall �� (��.�)

HIGHLIGHTSGLOBAL

www.colliers.com

MID-YEAR 2012 | RETAIL

ANN T. NATUNEWICZ Manager | Retail Research | USA

Colliers’ 2012 Global Retail Streets survey found that of 129 locations tracked, 51 posted higher year over year average rental rates, 49 were flat, and 24 were down (5 lacked comparable data).

Retailers entering new markets—both developed and developing—continue to hedge risk by targeting the same one or two premier locations, generating heated competition and outsized rental rate growth in a handful of space-constrained corridors.

Companies with the most ambitious long-term expansion plans remain focused on emerging markets with rapidly growing middle-class populations, but recently institutional capital has pulled back somewhat to favor core markets and investments.

While economic and political turmoil did affect rental rates in headline-generating markets (such as Cairo and Athens), high streets with strong fundamentals remained remarkably resilient, suggest-ing, at least for now, some separation between macroeconomic issues and underlying real estate fundamentals.

Since we conducted our survey, however, weakening consumer sentiment among affluent shoppers has already begun to impact retailers’ revenues and could hinder landlords’ near-term ability to raise rents, suggesting flattening growth rates for the coming year.

This spring proved to be a tricky time to conduct global benchmarking, as market sentiment has deteriorated markedly since April. During the past year, virtually every entity making a forecast—including Colliers in our 2012 U.S. Retail Outlook —included a caveat related to not-yet-quantifiable global fallout from Europe’s fiscal issues. As the past few months have illustrated, the time to face Eurozone issues has finally arrived, spawning a new wave of financial uncertainty.

More than two years post-recession, though, results from our annual survey of High Street rents illustrate that the world’s priciest retail corridors continue to attract the most sought-after tenants at lofty rental rates. Eight of Colliers’ top ten Global Retail Streets in 2011 made the list again this year. The big story, however, lies with the explosive year over year rental growth achieved in a handful of markets. Six of our Top 10 grew at double-digit levels year over year in local currency units, five of them by more than 20%.

At a regional level, streets in areas that entered 2007-08 better-positioned economically—Australia, Canada, parts of Eastern Europe—had a higher percentage of this year's flat-to-higher rents than those slower to emerge from the recession. We will be watching these areas closely. Even as they represent some of the most attractive destinations for expansion-minded companies and yield-seeking investors, they too are vulnerable to softening consumer demand and, for those with reliable data, encroachment of e-commerce.

This report contains two parts. The first summarizes the results of our annual Global Retail Streets survey, conducted in April 2012. The second incorporates content from Colliers’ brokerage and research teams worldwide who contributed market operational metrics, nuanced commentary on retail conditions, and forward-looking opinions on what the next year will hold for consumers, landlords, and investors.

Record Rents for Top Retail Corridors; Global Slowdown Impacts Momentum Elsewhere

TOP 10 GLOBAL RETAIL STREETS*(USD PER SQUARE FOOT PER YEAR)

REGIONAL RETAIL RESEARCH CONTACTS

AMERICAS > Ann T. Natunewicz [email protected]

EUROPE/MIDDLE EAST/AFRICA > Zuzanna Baranowska [email protected]

ASIA > Simon Lo [email protected]

AUSTRALIA/NEW ZEALAND > Nora Farren [email protected]

Source: Colliers International* selected cities** exchange rate as of March 31, 2012*** Zone A rents

Colliers International 1 www.colliers.com/india

Impact on Real Estate I Neutral

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

1Q 2013 | RESEARCH

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

Company Change (%)BSE SENSEX -1.52

-2.72

-2.05

-3.54

-0.27

-2.97

-5.62

0.23

-7.51

-2.12

-4.00

-0.69

-2.93

-0.77

-0.04

-0.99

-7.95

Realty Index

Anant Raj Ltd.

D B Realty Ltd.

DLF Ltd.

Godrej Properties Ltd.

HDIL

Hubtown Ltd.

Indiabulls Real Estate

Mahindra Lifespace

Orbit Corporation Ltd.

Parsvnath Developers

Peninsula Land Ltd.

The Phoenix Mills Ltd.

Sobha Developers Ltd.

Sunteck Realty Ltd.

Unitech Ltd.

UNION BUDGET 2013 - A SNEAK PREVIEW

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

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

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

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

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

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

STREET/PRECINCTRENT

(USD)**

ANNUAL CHANGE

(%)

New York – Fifth Avenue ��,�� .�

Hong Kong – Queen's Road Central, Central (tie)

��,�� .�

Hong Kong – Canton Road (tie)

��,�� .�

London – Old Bond St.*** ��,�� .�

Paris – Avenue des*** Champs-Élysées

��,�� flat

Hong Kong - Causeway Bay

��,�� .�

New York – Madison Avenue

�� .�

Zurich – Bahnhofstrasse �� flat

Milan – Via Monte Napoleone

�� (�.�)

Sydney – Pitt Street Mall �� (��.�)

HIGHLIGHTSGLOBAL

www.colliers.com

MID-YEAR 2012 | RETAIL

ANN T. NATUNEWICZ Manager | Retail Research | USA

Colliers’ 2012 Global Retail Streets survey found that of 129 locations tracked, 51 posted higher year over year average rental rates, 49 were flat, and 24 were down (5 lacked comparable data).

Retailers entering new markets—both developed and developing—continue to hedge risk by targeting the same one or two premier locations, generating heated competition and outsized rental rate growth in a handful of space-constrained corridors.

Companies with the most ambitious long-term expansion plans remain focused on emerging markets with rapidly growing middle-class populations, but recently institutional capital has pulled back somewhat to favor core markets and investments.

While economic and political turmoil did affect rental rates in headline-generating markets (such as Cairo and Athens), high streets with strong fundamentals remained remarkably resilient, suggest-ing, at least for now, some separation between macroeconomic issues and underlying real estate fundamentals.

Since we conducted our survey, however, weakening consumer sentiment among affluent shoppers has already begun to impact retailers’ revenues and could hinder landlords’ near-term ability to raise rents, suggesting flattening growth rates for the coming year.

This spring proved to be a tricky time to conduct global benchmarking, as market sentiment has deteriorated markedly since April. During the past year, virtually every entity making a forecast—including Colliers in our 2012 U.S. Retail Outlook —included a caveat related to not-yet-quantifiable global fallout from Europe’s fiscal issues. As the past few months have illustrated, the time to face Eurozone issues has finally arrived, spawning a new wave of financial uncertainty.

More than two years post-recession, though, results from our annual survey of High Street rents illustrate that the world’s priciest retail corridors continue to attract the most sought-after tenants at lofty rental rates. Eight of Colliers’ top ten Global Retail Streets in 2011 made the list again this year. The big story, however, lies with the explosive year over year rental growth achieved in a handful of markets. Six of our Top 10 grew at double-digit levels year over year in local currency units, five of them by more than 20%.

At a regional level, streets in areas that entered 2007-08 better-positioned economically—Australia, Canada, parts of Eastern Europe—had a higher percentage of this year's flat-to-higher rents than those slower to emerge from the recession. We will be watching these areas closely. Even as they represent some of the most attractive destinations for expansion-minded companies and yield-seeking investors, they too are vulnerable to softening consumer demand and, for those with reliable data, encroachment of e-commerce.

This report contains two parts. The first summarizes the results of our annual Global Retail Streets survey, conducted in April 2012. The second incorporates content from Colliers’ brokerage and research teams worldwide who contributed market operational metrics, nuanced commentary on retail conditions, and forward-looking opinions on what the next year will hold for consumers, landlords, and investors.

Record Rents for Top Retail Corridors; Global Slowdown Impacts Momentum Elsewhere

TOP 10 GLOBAL RETAIL STREETS*(USD PER SQUARE FOOT PER YEAR)

REGIONAL RETAIL RESEARCH CONTACTS

AMERICAS > Ann T. Natunewicz [email protected]

EUROPE/MIDDLE EAST/AFRICA > Zuzanna Baranowska [email protected]

ASIA > Simon Lo [email protected]

AUSTRALIA/NEW ZEALAND > Nora Farren [email protected]

Source: Colliers International* selected cities** exchange rate as of March 31, 2012*** Zone A rents

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

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

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

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

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

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

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

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

india residential property market overview may 2013

Economy & Finance