india residential property market overview may 2014

Residential Property Market OverviewMay 2014

research & forecast reportSYDNEY CENTRAL BUSINESS DISTRICT

2 Research & Forecast Report | May 2014 | Residential | Colliers Internationalwww.colliers.com

ecoNoMIc BaroMeter

Apr-13 Apr-14

repo rate 7.50% 8.00%

reverse repo rate 6.50% 7.00%

crr 4.00% 4.00%

Inflation 4.77% 5.20%

home loan rate 9.95% 10.15%

returN oN alterNatIve INvestMeNts

Apr-13 Apr-14 YoY % Change

Gold 27,135 29,773 9.72%

silver 45,483 41,892 -7.90%

fixed Deposit 8.75% 9.00% 2.86%

equity 19,504 22,418 14.94%

realty Index 1,901 1,397 -26.54%

repo rate cash reserve ratio Wholesale price Index

ecoNoMIc INDIcators

In p

erce

ntag

e

Macro Economic Overview

India’s economic growth decelerated to 4.7% in 4Q 2013, from 4.8% in the previous •quarter. On a positive note, the BCI rose to 54.9 during 4Q 2013, from 45.7 in the previous quarter showing an increase in business confidence levels. The International Monetary Fund (IMF) has projected 5.4% GDP for 2014, presenting a positive outlook for the Indian economy.

RBI has raised the repo rate from 7.75 to 8.00% this quarter, which may result in a further •increase in consumer loan interest rates.

Restricted sales transactions were seen in major cities during the quarter. New project •launches saw a sharp decline except in cities like Chennai, Bengaluru and Pune, which have seen ample new project launches. Developers have continued offering buyback schemes and possession-linked payment plans to provide much needed comfort to buyers. Capital values remain stable in most cities; however select micro markets with inherent demand witnessed increases in the range of 2 -5% QoQ.

COLLIERS VIEW: An increase in the number of enquiries for residential properties has •been seen across the major cities. However, transaction volumes have not improved much. With the new Government in place and business confidence is gaining momentum, we anticipate an increase in residential sales in the coming quarter. Capital values are expected to remain stable in the near term; however, there will be upward pressure in the medium to long term due to increased demand.

4.0

3.0

6.0

5.0

8.0

9.0

7.0

11.0

10.0

12.0

Mar

‘09

Jan

‘09

Nov‘

09

Mar

‘11

Mar

‘12

May

‘13

Jul‘1

3

sep‘

13

Mar

‘14

Jan‘

14

May

‘14

Nov‘

13

Mar

‘13

Jan‘

11

May

‘09

May

‘10

Mar

‘10

Jan‘

10

May

‘11

May

‘12

May

’08

Mar

’08

Jan

‘08

Jul‘0

9

Jul‘1

0

Jul‘1

1

Jul’1

2

Dec’

08

Nov’

08

sep’

08

Jul‘0

8

sep‘

09

Nov‘

10

sep‘

10

sep‘

11

sep‘

12

Jan‘

12

Jan‘

13

Nov‘

11

Nov‘

12

2.0

1.0

0.0

-1.0

-2.0

Source: Goverment of India, Colliers International India Research

Research & Forecast ReportIndia I Residential | May 2014

1 SBI Home loan rate for loan upto INR 30 Lakhs2 SBI Fixed deposit rate for a period of more than one year and amount below INR 1 Crore3 Realty Index is a free float weighted index, comprised of real estate development companies in the BSE-500 Index.

2

3

1

3

1Q 2014 2Q 2014F

capital value

rental value

New project

construction pace

MuMBaI

SELECT NEW PROJECTS

PROJECT NAmE LOCATION DEvELOPER NAmE TENTATIvE POSSESSION*

RATE (PER SQ.FT.)**

Godrej central chembur (e) Godrej properties ltd. 4Q 2018 14,000

runwal forest Kanjurmarg runwal Group 4Q 2018 9,900

Wadhwa anantya chembur (W) Wadhwa Group 4Q 2018 15,500

the only Majiwada, thane lodha Group 4Q 2018 8,470

White city Kandivali (e) rajesh lifespaces 4Q 2018 11,300

auris serenity Malad sheth creators 4Q 2017 13,500

•During the quarter, the Mumbai residential market remained subdued with lower transaction volumes in the secondary market. However, the primary market witnessed increased traction in select mid-range projects.

The primary residential market •witnessed increased project launches QoQ. Developers, such as Godrej Ltd, Runwal Group, Lodha Group, Wadhwa Group and Rajesh Lifespaces, have launched their residential projects in the central and western suburb micro-markets.

Limited new supply was added to the •market this quarter. A project that witnessed completion this quarter was Aurum by Lodha Group at Kanjurmarg, which is currently priced at INR12,500 per sq ft.

During 1Q 2014, capital values in the •central and western Suburbs rose in the range of 1 - 9% QoQ. However micro-markets, like Colaba, Cuffe Parade and Powai, witnessed a decline in the range of 3 - 5% QoQ.

The decreasing demand and cost •optimisation from corporations have prompted landlords to lower their rent expectations in order to secure tenants. The rents declined in the range of 1 - 7% QoQ in most of the micro-markets, except a few, such as Bandra, Khar, Juhu and Powai, where rents rose marginally in the range of 1 – 2%.

COLLIERS VIEW:• Going forward, absorption in the luxury segment will remain under pressure. The pre-launches in the mid-segment and low-end segments will continue to have traction at the introductory prices. Overall capital values in the primary and secondary sales markets are expected to remain stable in the short to medium term.

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

13

3Q20

14f

1Q20

15f

1Q20

14f

1Q20

11

3Q20

11

80,000

40,000

50,000

70,000

60,000

10,000

20,000

30,000

0

Mumbai

prab

hade

vi

colaba, cuffe parade

sout

h M

umba

i

Malabar hill, altamount road, carmichael road

Worli

Wor

li

Breach candy, Napeansearoad, peddar road

prabhadevi

Band

ra

Bandra

sant

acru

z

santacruz

andh

eri

andheri

pow

ai

powai

Khar

Khar

Juhu

Juhu

200

150

100

50

0

Malabar hill, altamount road, carmichael road

colaba, cuffe paradeBandra

Juhu

Khar

prabhadevi

Breach candy, Napeansea road, peddar road

andheri

Worli

santacruz

INr

per

sq.ft

.

Note: above values represents indicative asking price for premium properties

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

averaGe capItal value raNGe

averaGe reNtal value

averaGe capItal value treNDs

cItY resIDeNtIal BaroMeter

Note: ongoing price: Indicative asking price in the primary market.

micro market Ongoing Price (P.S.F)

thane - Kalyan 4,000 - 8,000

Navi Mumbai 3,500 - 7,500

virar - Boisar 3,000 - 5,500

INvestMeNt opportuNItIes

4 Research & Forecast Report | May 2014 | Residential | Colliers International

1Q 2014 2Q 2014F

capital value

rental value

New project

construction pace

DelhI

SELECT ONGOING PROJECTS

PROJECT NAmE LOCATION DEvELOPER NAmE

TENTATIvE POSSESSION*

RATE (PER SQ.FT.)**

capital Greens phase v shivaji Marg Dlf ltd. 2Q 2015 18,000

castlewood okhla Indiabulls ltd. 2Q 2014 12,800

Kings court Greater Kailash- II Dlf ltd. 2Q 2015 40,000

Queens court Greater Kailash- II Dlf ltd. 1Q 2015 36,000

signature villas connaught place tata housing ltd. 4Q 2017 120,000 - 150,000

Winter hills Dwaraka Morh umang realtech 2Q 2014 10,250

In 1Q 2014, amid economic and political •volatility, the Delhi prime residential market remained distressed for the fourth consecutive quarter. Sales volume declined further as investors and end-users adopted a “wait-and-watch” strategy.

Similarly, the leasing market slowed •considerably due to limited hiring by multinational companies and embassies. With tenants getting more cost conscious, landlords were more open to rent negotiations. This quarter, rents for prime residential properties witnessed a decline in the range of 6% to 10% in almost all the micro markets.

Capital value remained stable as •landlords are also in a “wait-and-see” mode and seem to be in no hurry to make a deal.

The local authorities have proposed •to increase the circle rate in the city by another 20% to 30% to rationalise registration in view of ongoing market rates. The last circle rate revision happened in 2012 when the minimum rate for valuation of land and immovable properties was increased substantially. This increase in rate is likely to be applicable after May, 2014.

COLLIERS VIEW:• With no formal government in place, as well as ongoing elections and political uncertainties, the city’s overall sentiment will remain cautious. We anticipate an increase in sales volumes in the coming month post-elections, as investors as well as end-users that are away from the market will come back once the political uncertainty is cleared. Capital and rental values are expected to remain stable in the near term for premium properties.

0

15,000

30,000

45,000

60,000

90,000

105,000

75,000

120,000

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

13

3Q20

14f

1Q20

15f

1Q20

14f

1Q20

11

3Q20

11

1,00,000

90,000

80,000

40,000

50,000

70,000

60,000

10,000

20,000

30,000

0

Delhi

200

160

120

80

40

0

INr

per

sq.ft

.







anan

d Ni

keta

n,

vasa

nt v

ihar

panc

hash

ila, a

nand

-lo

k, Ni

ti Ba

gh, s

Da

frie

nds

colo

ny,

Mah

aran

i Ba

gh

shan

ti Ni

keta

n,

Wes

tend

Grea

ter

Kaila

sh I

&

II, s

outh

ext

ensi

on

Golf

link

s, J

or B

agh,

su

nder

Nag

ar

chan

akya

pur

i

prith

vira

j roa

d,

aura

ngze

b ro

ad

anand Niketan, vasant vihar

panchashila, anandlok, Niti Bagh, sDa

friends colony, Maharani Bagh

shanti Niketan, Westend

Greater Kailash I

& II, south extension

Golf links, Jor Bagh, sunder Nagar

chanakya puri

prithviraj road, aurangzeb road

prithviraj road, aurangzeb road

Golf links, Jor Bagh, sundar Nagarshanti Niketan, Westend

chanakya puri friends colony, Maharani BaghGreater Kailash I & II, south extension

panchashila, anandlok,Niti Bagh, sDa

anand Niketan, vasant vihar

5

1Q 2014 2Q 2014F

capital value

rental value

New project

construction pace

GurGaoN

SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

Godrej oasis sector 88a Godrej properties 4Q 2017 6,500

platina sector 103 satya Group 4Q 2017 5,000

tata arabella sohna road tata housing 4Q 2017 12,500 - 14,000

ultima phase-II sector 81 Dlf ltd. 4Q 2017 8,700

vatika Boulevard sector 83 vatika Group 4Q 2017 6,800

vatika one express city sector 88a, 88B & 89a vatika Group 4Q 2018 7,250

0

5,000

10,000

15,000

20,000

30,000

35,000

40,000

25,000

45,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

14f

1Q20

11

3Q20

11

18,000

8,000

10,000

16,000

14,000

12,000

2,000

4,000

6,000

0

Gurgaon

Nh -

8

sohna road & ext

Golf

cour

se r

oad

Dlf phase I

sohn

a ro

ad &

ext

Dlf

phas

e I

Nh - 8

Golf course road

sush

ant l

ok

sushant lok

80

60

40

20

0

INr

per

sq.ft

.









Golf course road extension 7,500 - 9,000

sohna extension 4,000 - 5,000

pataudi road 4,500 - 5,500

New Gurgaon 4,000 - 5,000


Gurgaon residential market witnessed •overall reduced demand in both primary and secondary markets during the surveyed quarter.

In the primary market, only a few •premium projects / parts of projects were launched, including: “Godrej Oasis” by Godrej Properties at Sector 88A; “Platina” by Satya Group at Sector 103; “Tata Arabella” by Tata Housing at Sohna Road; “Ultima Phase-II” by DLF Ltd at Sector 81; and “Vatika Boulevard” and “Vatika One Express City” by Vatika Group at Sector 83 and Sectors 88A, 88B and 89A, respectively. These projects were priced in the range between INR5,000 to INR14,000 per sq ft.

The developers have not reduced sales •prices in their newly launched projects; however, they were offering innovative payment plans such as partial payment on possession and buyback options to generate sales amid waning demand.

In the secondary market there was a •downward pressure on capital values, however asking prices were remained stable.

This quarter, Gurgaon district •administration has revised the circle rate with effect from April 1st 2014. The average hike in the circle rate is 15% across the city. This increase in the circle rate will lead to high registration cost of properties in the city. Circle rate is the minimum rate defined by the state government for property registration.

COLLIERS VIEW:• Looking forward, capital and rental values are expected to remain stable. Investor activity is expected to pick up post new Government formation; however, end-users will remain at bay due to high price points and relatively fewer options available for mid-segment housing.

Dlf phase I

Nh-8

Golf course road

sushant lok

sohna road & ext

1Q20

15f


1Q 2014 2Q 2014F

capital value

rental value

New project

construction pace

NoIDa

SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

exotica sports city sector 79 exotica housing 4Q 2017 4,300

Wave Irenia sector 32 & 25a Wave Group 4Q 2017 8,200

lotus Greens Yamuna expressway lotus Greens 4Q 2018 2,700

lotus square residences sector 98 lotus Greens 4Q 2018 7,500

romano sector 118 supertech ltd. 4Q 2017 4,350

the urban Walk sector 121 techzona Group 4Q 2017 5,000

0

1,500

3,000

4,500

6,000

9,000

10,500

7,500

12,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

3Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

15f

1Q20

14f

1Q20

11

3Q20

11

12,000

6,000

7,500

10,500

9,000

1,500

3,000

4,500

0

NOIDA

sector 50

sector 44

sector 61,62,63

sector 28,29,30

sector 92/93

40

30

20

10

0

INr

per

sq.ft

.









NoIDa expressway 4,000 - 7,000

sectors 71 to 83 4,500 - 5,500


sect

or 2

8, 2

9, 3

0

sect

or 9

2/93

sect

or 6

1, 62

., 63

sect

or 5

0

sect

or 4

4

sector 61,62,63

sector 92 / 93

sector 28,29,30

sector 50sector 44

The NOIDA residential market witnessed •revived interest from end-users as well as investors. There has been an increase in inquiries for projects nearing completion in the secondary sales market. However, this has not resulted in an increase in transaction volumes.

In 1Q 2014, NOIDA witnessed launch of •few premium and mid-range projects.

No new major projects / phases of •projects were completed this quarter; however, there are several projects awaiting an occupation certificate that are expected to be delivered in the next two quarters in sectors along the NOIDA Expressway.

In 1Q 2014, capital values remained •stable across all micro-markets. Rents in institutional sectors, such as Sectors 61 – 63, witnessed downward pressure as tenants prefer new projects with amenities in nearby localities.

In order to boost real estate activity, •the local government body this quarter gave the nod to a mixed land-use policy that allows commercial activities in residential sectors. The authority allows commercial activities in residential areas having roads of 24 m wide or more. This will further stimulate other real estate activities like construction of hospitals, banks, schools, ATM kiosks, guest houses and other business premises.

COLLIERS VIEW:• After the new Government formation, the city residential demand scenario is likely to improve. Moreover, a number of new projects are expected to be completed in the coming quarters. This upcoming supply will keep capital values in check in the secondary market. In the primary market, developers will keep offering freebies and other promotional offers in order to clear their unsold inventories.

7

1Q 2014 2Q 2014F

capital value

rental value

New project

construction pace

cheNNaI

2,000

6,000

18,000

14,000

10,000

22,000

30,000

26,000

38,000

34,000

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

13

3Q20

14f

1Q20

15f

1Q20

14f

1Q20

11

3Q20

11

25,000

9,000

13,000

21,000

17,000

1,000

5,000

Chennai

anna Nagar

Boat club

adyar

Nungambakkam

Beasant Nagar

t Nagar

sholinganallur

siruseri/ Kazipattur

alwarpet / r a puram

velachery

90

75

60

45

30

15

0

INr

per

sq.ft

.









velachery 5,000 - 7,000

sholinganallur 3,500 - 4,200

siruseri/ Kazipattur 3,000 - 4,000

Kelambakkam 3,000 - 4,000


SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

atlantic egmore ceebros property Development 4Q 2016 17,000

avana Nungambakkam ar homes 2Q 2015 26,000

corniche egmore ramky Wavoo developers 4Q 2016 16,000

la verde Mare thoraipakkam Jains housing 4Q 2016 7,200

pallagio thoraipakkam casa Grande 4Q 2016 7,800

White rose thoraipakkam Bhoomi & Buildings 4Q 2016 5,999

adya

r

anna

Nag

ar

Nung

amba

kkam

alw

arpe

t / r

a p

uram

vela

cher

y

shol

inga

nallu

r

siru

seri/

Kaz

ipat

tur

t Na

gar

Beas

ant N

agar

Boat

clu

b

Boat club

siruseri/ Kazipattur

velachery

sholinganallur

anna Nagar

t Nagar

adyarBeasant Nagar

Nugambakkam

alwarpet /r a puram

During 1Q 2014, increased demand •for premium residential projects was noticed precisely in micro-markets, like R.A. Puram, Thoraipakkam, Alwarpet, Anna Nagar and Kilpauk. Mid-income projects have also witnessed marginally increased absorption in peripheral locations.

Chennai witnessed an increase in launch •of premium and mid-range projects in 1Q 2014.

During the quarter, Chennai based XS •Real Group and Hayat Invest Co. of Kuwait have partnered for a 14-acre residential project located near Siruseri IT Park. The project will target the middle-income group and is expected to be launched in 2Q 2014.

This quarter witnessed completion •of various premium projects such as “Centralis” by Coromandel Engg at Boat Club; “Sreshta Vasanth” by Sumanth & Co at Alwarpet; “Sukhin” by Barath Building Construction; and “Ananta” by AR Homes at Palavakkam, all priced in the range of INR12,000 to INR30,000 per sq ft; and mid-range projects like “Bollineni Hillside” by BSCPL Infra at Perumbakkam; “Amber” by Indus Builders at Saidapet; and “Belvedere” by Ceebros Constructions. These are currently priced in the range of INR5,300 - 8,500 per sq ft.

Capital values increased in the range •of 2 - 5% QoQ in the prime micro-markets, like T Nagar, Beasant Nagar and Sholinganallur. The remaining micro-markets were stable.

COLLIERS VIEW:• Demand from both occupiers and investors will continue to grow in the coming quarters. Further backed up by strong construction activities and new project launches, we expect an increase in capital values in almost all micro-markets.


Steady demand for premium residential •properties was seen during the quarter. Micro-markets like Whitefield, Electronic City, Hennur Road, Marathahalli and Binnypet witnessed new project launches in the price range of INR 3,500 - 6,100 per sq ft.

The market witnessed completion •of various premium and mid-range projects / parts of projects like “Brigade Petunia” by Brigade Group at Jayanagar; “Salarpuria Greenage” by Salarpuria Group at Bommanahalli; “Arya Ananya” by Arya Gruha at Whitefield; “Sobha Aspire” by Sobha Developers at Tumkur Road; “Legacy Ariston” by Legacy Group at Yelahanka; and “Neotown Smondoville” by Patel Realty at Electronic City.

During the surveyed quarter, capital •values rose in the range of 3 - 4% QoQ in micro-markets like Airport Road, Bannerghatta Road and Whitefield. However, the rest of the micro-markets remained stable. Continued demand from the IT/ITeS sector employees kept upward pressure on rentals and rents increased in the range of 2 - 9% QoQ in almost all micro-markets.

The state government has proposed an •elevated road from Basaveshwara Circle to Hebbal in order to provide a hassle-free drive to Kempegowda International Airport (KIA). The total cost of the project is expected to be around INR1,200 crore.

COLLIERS VIEW:• The overall sentiments look positive for the city. With increasing business confidence and a strong office market, demand in the residential sector is expected to improve from its current levels, specifically for premium and mid-range housing. A narrowing demand and supply gap should allow capital values to rise in the range of 4 - 6% in the near term across all micro-markets.

1Q 2014 2Q 2014F

capital value

rental value

New project

construction pace

BeNGaluru

SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

enchante Whitefield olympia Group 3Q 2015 9,500

Godrej united Whitefield Godrej properties 4Q 2017 5,400

Miccassa Kogilu supertech Builders 4Q 2015 3,890

MJr clique electronic city MJr Builder 4Q 2016 3,490

park West Binnypet shapoorji pallonji Developers 4Q 2017 6,450

sterling asecentia Marathahalli sterling Developers 4Q 2016 6,100

0

4,000

8,000

12,000

16,000

24,000

28,000

20,000

32,000

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

13

3Q20

14f

1Q20

15f

1Q20

14f

1Q20

11

3Q20

11

25,000

20,000

15,000

5,000

10,000

0

Bengaluru

Jayanagar

central

palaceorchard

cooke town

airport road

Indiranagar

Koramangala

Whitefield

Yelahanka

Bannerghatta road

80

60

40

20

0

INr

per

sq.ft

.









airport road 5,000 - 7,000

Bannerghatta road 4,200 - 6,000

Whitefield 4,400 - 6,000

Yelahanka 3,500 - 5,000


Yela

hank

a

Bann

ergh

atta

roa

d

airp

ort r

oad

airp

ort r

oad

Whi

tefie

ld

Jaya

naga

r

cook

e to

wn

Kora

man

gala

Indi

rana

gar

pala

ce o

rcha

rd

cent

ral

central

Yelahanka

Koramangala

Indiranagar

Jayanagar

Bannerghatta road

palace orchard

cooke town

airport road

Whitefield

9

1Q 2014 2Q 2014F

capital value

rental value

New project

construction pace

KolKata

1,000

3,000

5,000

9,000

7,000

13,000

15,000

19,000

17,000

11,000

21,000

23,000

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

13

3Q20

14f

1Q20

15f

1Q20

14f

1Q20

11

3Q20

11

8,000

10,000

18,000

20,000

16,000

12,000

14,000

2,000

4,000

6,000

0

Kolkata

50

40

30

20

10

0

INr

per

sq.ft

.









tollygunge 3,600 - 4,800

Behela 2,900 - 3,700

salt lake 4,000 - 6,000

eM Bypass 4,000 - 7,000

New town -rajarhat 3,200 - 4,600


SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

Blossom county New alipore vinayak Group 4Q 2018 6,100

citrus cove rajpur vinayak Group & ps srijan 4Q 2017 4,050

pratham Bt road Dhoot 4Q 2017 3,600

sankalpa Iv New town WBIDfc 4Q 2016 4,800

sonar Kella Baruipur arrjavv 4Q 2017 2,390

sukhmani Imperia Diamond harbour road sukhmani Develop-ers pvt ltd 4Q 2017 8,000

In 1Q 2014, end-users remained the •primary demand generator in the primary residential market. Micro markets like Rajarhat, EM Bypass, New Town and Baguihati remained the preferred locations due to proximity to employment hubs, affordability and upcoming infrastructure.

A few mid-range projects witnessed •completion this quarter, including “Sankalpa II & III” by WBIDFC at New Town and “Sunrise Symphony” by Surekha Group at Rajarhat. These projects were priced in the range of INR4,500 to INR4,800 per sq ft.

Capital values in the premium residential •market increased in the range of 1% to 9% QoQ in almost all the micro markets barring premium micro markets in central Kolkata where capital values remained stable. Correspondingly, rents also increased in the range of 2% to 9% QoQ in most of the micro markets; however, Bhawanipur, Tollygunge, Behela and New Town-Rajarhat registered a stable rent scenario this quarter due to large supply in these micro markets.

For the first time in Kolkata, the local •government has reduced the circle rate in the range of 8% to 33% across the city to streamline property valuation by reducing discrepancies between registration price and actual market value of the property.

COLLIERS VIEW:• The new government will play a vital role in terms of influencing and ruling the city’s real estate. However in observance of demand for mid-range and affordable housing projects, developers have started launching new projects. Going ahead, capital values are expected to strengthen further and increase in the range of 2% to 5% in the mid-term.

alip

ore

Bally

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e

Bhaw

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ur

eM B

ypas

s

pa s

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road

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on s

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t

New

tow

n -r

ajar

hat

salt

lake

tolly

gung

e

vIp

road

Behe

la

Bhawanipur

pa shah road

tollygunge

loudon street

Behela

aliporeeM Bypass

Ballygunge

salt lake

vIp road

New town rajarhat

Bhawanipur

eM Bypass

Ballygunge

Behela

tollygunge

p a shah road

New town - rajarhat

loudon street

alipore

vIp roadsalt lake


During this quarter, restricted demand •from speculators and investors has been seen in the premium and mid-range residential segments; however end-user demand remained positive.

The market witnessed launches of a few •mid-range residential projects during the surveyed quarter.

Various projects were completed this •quarter like “Suyog Nisrag” by Suyog Development Corporation at Wagholi; “Vishal Arc Glory” by Vishal Group at Hadapsar; “Shree Venkatesh Lake Vista” by Shree Venkatesh Buildcon at Ambegaon; “Megapolis Smart Homes” by Kumar Properties and “Village Residency” by The Pristine Horizon Promoters, both located at Hinjewadi; “Kirti Avenue” by Kirti Developers, “Gera Regent Manor” by Gera Development, and “Vascon Willows” by Vascon Infrastructure Ltd, all located at Baner.

Capital values in all micro-markets •increased in the range of 2 - 4% QoQ. However, the remaining micro-markets like Deccan, Camp and Boat Club were stable.

In a major land transaction, Kolte-Patil •Developers Ltd has bought 34 acres of land at Wakad for a consideration of approximately INR350 crore. The developer is planning a mixed-use project with residential and commercial development.

COLLIERS VIEW:• The city witnessed an increased number of inquiries for residential projects in both mid- and high end segments this quarter. In the coming quarter, we expect that the residential market will start gaining significant traction. Capital values are expected to rise in mid-price and affordable housing locations such as Pimpri Chinchwad, Chakan and Kondhwa in the marginal range of 2 to 3% on a quarterly basis.

1Q 2014 2Q 2014F

capital value

rental value

New project

construction pace

puNe

SELECT NEW PROJECTS

PROJECT NAmE LOCATION DEvELOPER NAmE TENTATIvE POSSESSION*

RATE (PER SQ.FT.)**

Balewadi f-residences Balewadi eiffel Group 4Q 2016 6,000

calyx’ Navyangan pirangut calyx Group 3Q 2017 3,150

Ganga platino Kharadi Goel Ganga Developments 4Q 2016 5,700

Majestique city Wagholi Majestique Group 4Q 2017 4,000

pharande puneville Wakad pharande spaces 1Q 2017 4,800

sobha orion Kondhwa sobha Developers 4Q 2017 7,000

1,000

3,000

5,000

7,000

11,000

15,000

13,000

9,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

15f

1Q20

14f

1Q20

11

3Q20

11

11,000

6,000

8,000

7,000

10,000

9,000

3,000

4,000

5,000

2,000

Pune

30

25

20

15

10

5

0

INr

per

sq.ft

.









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 3,000 - 4,500


Kaly

ani N

agar

/vi

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Khar

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Bhaw

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Decc

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Boat

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i/W

akad

/pas

han

Mag

arpa

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apsa

r

NIBM

/und

ri/K

ondh

wa

Koth

rud/

Bavd

han/

Waj

re

pim

pri/c

hinc

hwad

/ch

akan

Kalyani Nagar/vi-man Nagar/Kharadi

Bhawanipur

Deccan/camp/Boat club

Baner/hinjewadi/Wakad/pashan

Magarpatta/hadapsar

NIBM/undri/

Kondhwa

Kothrud/ Bavdhan/ Wajre

pimpri/chinchwad

/chakan

Kalyani Nagar/viman Nagar/KharadiKothrud/Bavdhan/Wajre

NIBM/undri/Kondhwa

pimpri/chinchwad/chakan

Deccan/camp/Boat club/central puneMagarpatta/hadapsar

Baner/hinjewadi/Wakad/pashan

11

Mumbai

The high-end residential real estate markets in Mumbai include

Malabar Hill, Altamount Road, Carmichael Road, Napean Sea

Road, Breach Candy, Colaba, Cuffe Parade, Prabhadevi, Worli,

Bandra, Khar, Santacruz, Juhu and Powai.

Delhi

The prime residential areas in Delhi are in the South region and

comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan

and Central Delhi locations. These areas enjoy proximity to

embassies, the airport and central commercial areas - Connaught

Place.

Gurgaon

The prime residential locations of Gurgaon include Golf Course

Road, DLF Phase I, Sushant Lok, NH-8 and Sohna Road. Dwarka

Expressway, Sohna Region, Pataudi Road and Southern Peripheral

Road (SPR) are also emerging as a preferred residential location

owing to its proximity to the national capital.

NOIDA

NOIDA premium residential market is comprised of sectors

44, 50, 92, 61, 62, 63 , 28, 29, 30 and NOIDA - Greater NOIDA

Expressway. Most of the new projects launches are concentrated

in new sectors such as Sector 70 - 78 and sectors along NOIDA -

Greater NOIDA Expressway.

Chennai

The prime residential areas in Chennai include Boat Club,

R.A.Puram, MRC Nagar, Thiruvanmiyur, Valmiki Nagar and

Besant Nagar, R.A Puram, Mylapore and Adyar in South Chennai,

Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, T.

Nagar in Central Chennai; and Anna Nagar, Kilpauk in North

West Chennai.

Bengaluru (Bangalore)

The residential market of Bengaluru comprises both apartments

and independent residences. Currently, high-end residential

developments are mainly concentrated along the CBD, and

Eastern and South precincts of the city. Recently, Northern

Bengaluru has also witnessed a spree of realty activity facilitated

by the new International Airport at Devanhalli.

Kolkata

The prime residential areas in Kolkata include PA Shah Road,

Tollygunge and Bhawanipur in South Kolkata, Alipore and

Behala in South-west Kolkata, Loudon Street and Ballygunge in

Central Kolkata; and Salt Lake, EM Bypass and VIP Road in North

Kolkata.

Pune

The prime residential areas in Pune include Kalyani Nagar, Viman

Nagar, Boat Club Road, NIBM Road, Magarpatta, Hadapsar,

Koregaon Park. Recently, increased activities has been witnessed

in Pimpri-Chinchwad, Baner-Pashan and Kondhwa.

Residential Submarkets

CITY BAROMETERS

Increasing as compared to previous quarter

Decreasing as compared to previous quarter

Remained stable from previous quarter


Copyright © 2014 Colliers International.

ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

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Primary Authors:

Surabhi Arora I Associate Director Research

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Mumbai:[email protected]

Delhi / NCR: [email protected]

Amit Oberoi I National DirectorValuation & Advisory Services & Researchamit.oberoicolliers.com

Sachin Sharma I Assistant [email protected]

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Bengaluru:[email protected]

Pune:[email protected]

Chennai:[email protected]

Kolkata: [email protected]

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india residential property market overview may 2014

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