india residential property market overview_feb 2013

Accelerating success.

INDIA

QUARTERLY UPDATE | FEBRUARY | 2013

Residential Property Market Overview

www.colliers.com

reseArch & forecAst reportSYDNEY CENTRAL BUSINESS DISTRICT

IndIA resIdentIAL mArketRESEARCh & foRECAST REpoRT

INDIA | FEB 2013 | residential

www.colliers.com

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.

ECoNoMIC BARoMETER

RETURN oN ALTERNATIvE INvESTMENTS

Jan-12 Jan-13

repo rAte 8.50% 7.75%

reVerse repo rAte 7.50% 6.75%

crr 5.50% 4.00%

InfLAtIon 6.89% 6.95%

home LoAn rAte 11.00% 10.00%

Jan-12 Jan-13 YoY %

Change

GoLd 27,428 30,714 11.98%

sILVer 51,500 58,443 13.48%

fIxed deposIt 9.25% 8.50% -8.11%

eQUItY 16,189 19,818 22.42%

reALtY Index 1,574 2,245 42.63%

2

3

1

repo rate reverse repo rate cash reserve ratio Wholesale price Index

ECoNoMIC INDICAToRS

In p

erce

ntag

e

MACRo ECoNoMIC ovERvIEW

Gdp growth in the third quarter (July to september) of 2012 was 5.3%, contracted marginally •from the previous quarter’s 5.5%.

the headline inflation based on the whole sale price index edged down to 6.95% for the month •of January 2013, as compared to 7.18% in december 2012.

the reserve Bank of India reduced the repo and reverse repo rates by 25 basis points from •8.00% to 7.75% in Jan 2013 to induce immediate liquidity in the market. following suit, a few banks such as sBI and hdfc marginally reduced their home loan rates by 5 to 10 basis points.

this quarter, the reserve bank of India allowed electronic commercial Borrowing (ecB) for low-•cost affordable housing projects as a permissible end-use under the approval route. now not only, developers and builders can avail ecB for low-cost affordable housing projects, but housing finance companies (hfcs) and national housing Board (nhB) can also avail of ecB for financing prospective owners of low-cost affordable housing units.

the premium residential markets in India have shown an upward trend, with capital values •increasing in the range of 5 to 10% QoQ. notwithstanding the current economic difficulties, the mid-segment residential market will continue to remain active in markets like Bangalore, pune, chennai and noIdA due to their favourable affordability quotient. meanwhile, markets like those in mumbai, delhi and Gurgaon will continue to fetch premium value in the luxury segment.

4.0

3.0

6.0

5.0

8.0

9.0

7.0

11.0

10.0

12.0

Jan

‘09

nov

‘08

sep

‘09

Jan

‘11

Jan

‘12

Jan

‘13

nov‘

10

mar

‘09

mar

‘10

Jan‘

10

nov‘

09

mar

‘11

mar

‘12

may

’08

mar

’ 08

Jun

‘08

may

‘09

may

‘10

may

‘11

may

‘12

sep’

08

Jul‘0

8

Jul‘0

9

sep‘

10

Jul‘1

0

Jul ‘

11

Jul ‘

12

nov

‘11

nov

‘12

sep

‘11

sep

‘12

2.0

1.0

0.0

-1.0

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.)**

elisium Wadala Lodha Group 4Q 2017 16,900

elina saki naka runwal Group 4Q 2014 9,750

proxima Andheri kurla road the dudhwala Group 4Q 2016 11,750

serenity chembur Godrej properties 4Q 2015 26,400

CITY offICE BARoMETER

INvESTMENT oppoURTUNITIES

AvERAGE CApITAL vALUE RANGE

4Q 2012 1Q 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

In 4Q 2012, mumbai’s residential market •witnessed an increase in launches of new premium residential projects in locations like Wadala, Andheri and chembur micro-markets priced in the range of Inr 9,700 to 26,500 per sq ft.

demand for residential properties from •investors as well as end-users picked up this quarter due to the long festive season. however, construction activities remained slow resulting in no major new supply during the surveyed quarter.

capital values for prime residential properties •increased modestly across the city in the range of 1-3% QoQ. however locations such as Worli, khar, santacruz, Andheri and powai remained stable due to the large supply.

rental values of premium residential properties •remained stable in almost all of the micro-markets, except Bandra and khar, where a marginal increase was noticed in rents.

the state Government of maharashtra •approved a new policy for special township projects spread across 100 acres or more. the new policy mandates that such projects reserve 25% of the land for economic activities and 20% for economically Weaker sections (eWs). Also it has increased the ready reckoner rates by 18-20% across the city.

coLLIers VIeW:• the primary sales market in mumbai picked up during the last quarter. A significant number of this demand came from end users due to attractive price points however, investors activity was overall limited due to longer exit periods. secondary sales market remained curbed due to high price points. We anticipate, increased activity in primary sales market in the coming quarters with numerous new launches in both luxury and mid housing segment in the 2/3 Bhk typology.

10000

20000

30000

40000

60000

70000

50000

80000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

AvERAGE RENTAL vALUE

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13f

3Q20

13f

1Q20

11

3Q20

11

75000

45000

55000

60000

15000

25000

35000

5000

AvERAGE CApITAL vALUE TRENDS

forecast

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

malabar hill, Altamount road, carmichael road

powai

khar

prabhadevi

colaba, cuffe paradeBandra

Andheri

Worli

Juhu

Breach candy, napeansea road, peddar road

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

p. 4 | CoLLIERS INTERNATIoNAL


deLhI

KeY OnGOinG PrOJeCts


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

castewood 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



4Q 2012 1Q 2013

capital Value

rental Value

new project

construction pace

DELhI

during 4Q 2012, limited supply was added to •the city’s premium residential inventory; only few small-scale redevelopment residential projects were ready for possession in locations such as Vasant Vihar, Anand niketan and shanti niketan.

In 4Q 2012, capital values for premium •residential properties remained stable in all of the micro-markets. rental values for premium residential properties appreciated by 4% QoQ in the prithviraj road, Aurangzeb road, Golf Links, Jor Bagh and sunder nagar micro-markets. however, rents in micro-markets like Anand niketan, Vasant Vihar, friends colony, maharani Bagh, panchashila, Anandlok, niti Bagh and sdA declined in the range of 2-4% QoQ.

the Urban development ministry has asked •the ddA (delhi development Authority) to increase the fAr (floor Area ratio) for the eWs projects from 200 to 400. this measure has been proposed with an aim to reduce the affordable housing shortage in the capital; especially in the eWs segment. In this quarter, the delhi state Government has also revised the minimum circle rates in category A colonies by 200%, category B by 50%, categories c, d, and e by 25%, categories f and G by 25% and category h by 15%. the increase in the circle rate will help to increase transparency in the market by reducing the gap between the circle rate and the market value.

coLLIers VIeW:• the new master plan for delhi will facilitate the creation of new sub-cities within delhi by unlocking around 60,000 hectares of land for development. the increase in fAr (floor Area ratio) will help to boost residential real estate activity primarily in the eWs and LIG sections.

25000

10000

40000

55000

85000

100000

70000

115000

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

11

3Q20

1140000

50000

60000

70000

80000

100000

90000

30000

20000

10000

0


forecast

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

shanti niketan, Westend

friends colony, maharani Baghpanchashila, Anandlok, niti Bagh, sdA

Greater kailash I & II, south extension

chanakya puri

prithviraj road, Aurangzeb road

Anand niketan, Vasant Vihar





GUrGAon




4Q 2012 1Q 2013

capital Value

rental Value

new project

construction pace


GURGAoN

during 4Q 2012, a number of premium •projects/ parts of projects were launched in Gurgaon. most of these projects were launched in the price rangeof Inr 5,500 to 10,000 per sqft in 3/4 Bhk typology. dwarka expressway remained the most active market; other upcoming residential locations, like sohna and Golf course extension road, witnessed limited new launches.

healthy demand was noticed during the •surveyed quarter, and newly-launched projects witnessed high absorption despite an increased investment horizon. But most of this demand was investor driven and the end-users kept themselves at bay due to limited options in mid-segment housing and unaffordable prices.

construction activities remain healthy, •resulting in the completion of numerous residential projects like “tata raisina” by tata Group and “palm drive” by emaar mGf, both on Golf course extension road; and “La Lagoon” and “Verandas” by salcon Group both on Golf course road.

capital values in the secondary sales market •witnessed marginal appreciation in the range of 2 to 5% QoQ in locations like dLf phase I, sushant Lok, nh8, etc. emerging locations like dwarka expressway, new Gurgaon, pataudi road, Golf course extension road, etc. observed an increase in the range of 5 to 10% QoQ.

coLLIers VIeW:• the Gurgaon residential market witnessed an increase in resale inventory stock. end-users activity remained restricted, this is primarily due to an increase in prices and less options available for mid-segment housing. In the near term, micro-markets such as dwarka expressway, pataudi road, sohna road and Golf course extension road will continue to witness interest from investors; however, prices are expected to remain more or less at the same levels.

0

5000

15000

10000

20000

30000

35000

40000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth

Inr

per

sq.ft

.


3Q20

08

4Q20

08

2Q20

09

3Q20

09

4Q20

09

1Q20

09

1Q20

10

2Q20

10

1Q20

10

3Q20

10

4Q20

10

1Q20

12

4Q20

11

3Q20

12

4Q20

12

2Q20

12

1Q20

13f

2Q20

13f

4Q20

13f

3Q20

13f

1Q20

11

3Q20

11

2Q20

11

6000

8000

10000

12000

14000

16000

18000

4000

2000

0


forecast


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

nh-8

sushant Lok

dLf phase I

Golf course road

sohna road & ext

KeY neW PrOJeCts


Imperial Garden sector 102 emaar mGf 4Q 2016 6,500

kalistaa sector 84 spaze towers 4Q 2015 7,080

michael schumacher World tower sector 109 homestead 4Q 2016 12,000 - 14,000

oyster Grande sector 102 Adani Group 4Q 2016 5,500

triumph sector 104 Ats Group 4Q 2016 7,500

Woodshire sector 107 m3m Group 4Q 2016 6,250





noIdA




4Q 2012 1Q 2013

capital Value

rental Value

new project

construction pace


NoIDA

there has been a decrease in new project •launches this quarter as compared to the previous three quarters. most of the new launches were in the form of new towers at existing projects. the prices at newly-launched projects remained resilient due to consistent demand from end-users as well as investors, despite price correction speculation. most of the new projects were launched in the price range of Inr 4,000 to 5,000 psf.

fewer projects witnessed completion during •the quarter, including “Azure tower̶34 pavilion” in sector 39 by supertech Ltd. and phase I in “Lotus Boulevard” in sector 100 by 3c Universal Ltd..

capital values in the secondary sales market •remained stable in almost all micro-markets. however, secondary sales prices in the projects, which are expected to see completion in the near future, witnessed an appreciation in the range of 5 to 10% QoQ as they are preferred by end-users due to amenities offered in the form of club houses, parking, swimming pools, Wi-fi connectivity, etc.

rental values showed marginal appreciation •in the luxury segment due to limited supply. however, those in the mid-range segment remained stable.

coLLIers VIeW:• In the medium term, the noIdA residential market will witness increased absorption due to increasing interest from end-users as well as investors. the market will remain active among end-users primarily due its affordability quotient as compared to its counter part micro-markets, such as Gurgaon, where fewer options are available to cater to increasing demand from the mid-range segment. moreover, a decrease in interest rates will boost the investment confidence of end-users. prices are expected to see moderate appreciation in view of the large unsold inventory and upcoming new project launches.

5000

2000

8000

11000

17000

14000

20000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth


3Q20

09

4Q20

09

1Q20

10

2Q20

10

2Q20

12

4Q20

12

3Q20

12

2Q20

13f

1Q20

13f

3Q20

13f

4Q20

13f

1Q20

11

3Q20

10

4Q20

10

1Q20

12

3Q20

11

4Q20

11

2Q20

11

12000

10000

8000

6000

4000

2000

0


forecast


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 28,29,30

sector 44

sector 92 / 93

sector 50

KeY neW PrOJeCts


BrYs Buzz sector 150 Brys Group 4Q 2016 10,500

floraville sector 137 paramount Group 4Q 2014 5,400

ritz chateaux sector 74 supertech Ltd. 4Q 2016 14,990 - 16,990

Wave Amore sector 32 Wave Infratech 4Q 2015 6,770 - 6,860

Wave trucia sector 25A Wave Infratech 4Q 2015 6,770 - 6,860

Inr

per

sq.ft

.




india | FEB 2013 | REsIDENTIAL

KeY neW PrOJeCts


Abov kazhipattur, omr Akshaya homes 4Q 2015 10,400

fairways kolapakkam sumanth & co 1Q 2014 5,000

shine kazhipattur, omr radiance realty 2Q 2015 3,400

VGn hazel off poonamallee VGn developers 4Q 2016 3,000

pavilion thalambur, omr casa Grande 4Q 2015 3,000




chennAI

4Q 2012 1Q 2013

capital Value

rental Value

new project

construction pace


ChENNAI

In 4Q 2012, numerous new projects were •launched in the city. Locations like old mahabalipuram road (omr), poonamallee, chromepet and kolapakkam reckoned maximum activities in terms of launches. most of these projects were priced in the range of Inr 2,400 to 5,000 per sqft.

during the surveyed quarter, a number of •small residential projects/ phases of projects were completed, in micro-markets like Boat club road, thiruvanmiyur, pallavaram, Ayyappanthangal, singaperumalkoil, Avadi and Velachery.

capital values in the secondary sales market •for premium residential properties appreciated in the range of 2-7% QoQ in micro-markets like Boat club, Besant nagar, Adyar and siruseri, kazipattur. this was primarily because the new projects were being launched at a higher price and there was an increase in the guideline values in these areas.

the residential leasing market gathered •momentum, however, rents remained stable across the city for premium residential properties. the landlords have started offering attractive terms on leases, as they realize that companies have become very stringent with their residential budgets.

the chennai housing and Urban development •Authority has allowed an fsI exemption for multi-level parking above ground in residential projects.

coLLIers VIeW:• the evolving corridors such as rajiv Gandhi salai and Velachery will see an increase in capital values due to demand from the mid end segment. With upcoming infrastructure development in areas such as perungudi, sholinagallur, Adyar, teynampet, Valsaravakkam will witness high demand.

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

0

6000

3000

12000

9000

18000

15000

24000

27000

21000

30000

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 clubBeasant nagar

nugambakkamsiruseri/ kazipattur

Velachery

sholinganallur

Alwarpet / r A puram

Anna nagar

t nagarAdyar

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13f

3Q20

13f

1Q20

11

3Q20

11

25000

21000

17000

13000

9000

5000

1000


forecast


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


Bhartiya city thanisandra main road Bhartiya 4Q 2015 5,000

Brigade caladium hebbal Brigade Group 4Q 2015 7,000

Brigade Altamont off hennur road Brigade Group 4Q 2015 4,300

corinth off hennur road ezzy Group 4Q 2015 6,500

temple tree hennur road expat Group 4Q 2016 3,000




4Q 2012 1Q 2013

capital Value

rental Value

new project

construction pace


BENGALURU (BANGALoRE)

during 4Q 2012, developers continued to •launch premium residential projects. micro-markets like thanisandra, hebbal and hennur road were the preferred locations for new residential development. demand was driven by both investors and end-users due to high affordability and high rental yield. the prices at newly-launched projects have increased and most of the premium projects were priced in the range of Inr 4,000 to 7,000 per sq ft.

In the same quarter, the city witnessed •completion of various projects/ parts of projects including “Jains Altura” by Jain heights & structures, and “LGcL Ashlar” by LGcL, both located at sarjapur road; “Legacy caldera” by Legacy Group at cunningham road; “sobha cinnamon” by sobha developers at haralur road; “prestige oasis” by prestige Group at doddaballapur road; and “skylark Arcadia” by skylark at Whitefield.

capital values in the secondary sales markets •have witnessed an increase in the range of 5-6% QoQ in central locations cooke town and Jayanagar due to limited supply. All other micro-markets were remained stable due to large available supply in the pipeline.

rents in micro-markets such as Whitefield, •koramangala, central, cooke town and Airport road increased in the range of 2-5% QoQ. most of the demand in this segment comes from employees of the It/Ites sector.

colliers View:• the Bangalore residential market will continue to remain active due to its favourable affordability quotient and increasing investor interest. recently, Bangalore caught the interest of a number of Grade A developers which will result in more options for buyer and control over prices. We anticipate that residential prices will increase moderately in the near future inspite of the huge supply in the pipeline.

6000

2000

10000

18000

14000

22000

26000

30000

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth


25000

20000

15000

10000

5000

0


forecast


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

Whi

tefie

ld (A

ppts

)

Whitefield (Appts)

kora

man

gala

koramangala

Bann

ergh

atta

ro

ad

Bannerghatta road

Indi

rana

gar

Indiranagar

Airp

ort r

oad

Airport road

pala

ce o

rcha

rd

palace orchard

Jaya

naga

r

Jayanagar

cook

e to

wn

cooke town

cent

ral

central80

60

40

20

0

1Q20

08

2Q20

08

3Q20

08

2Q20

10

4Q20

09

1Q20

10

4Q20

08

1Q20

09

2Q20

09

3Q20

09

3Q20

10

4Q20

10

1Q20

11

2Q20

11

3Q20

12

4Q20

12

1Q20

13f

2Q20

13f

3Q20

13f

4Q20

13f

2Q20

12

1Q20

12

4Q20

11

3Q20

11

central

Yelahanka

koramangala

Indiranagar

cooke town Jayanagar

Bannerghatta road

palace orchard

Airport road

Whitefield

Inr

per

sq.ft

.




INDIA | FEB 2013 | resiedential

koLkAtA

KeY neW PrOJeCts


Alcove regency topsia Alcove Group 4Q 2015 7,500

Altius topsiaprudent Infra realty &

space Group4Q 2015 8,200

Lavanya Bishnupur orchid Grup 4Q 2015 2,600

rajat Boulevard tangra rajat Group 4Q 2015 5,200

sampoorna new town, rajarhat Bengal dcL 4Q 2015 3,600 - 3,800





4Q 2012 1Q 2013

capital Value

rental Value

new project

construction pace


koLkATA

In 4Q 2012, the kolkata premium residential •market saw few launches as a number of developers are awaiting approvals from the authorities for new project launches. suburban residential micro-markets like topsia, tangra, Bishnupur and new town witnessed most of these new launches. most of these projects were launched in the mid-range, priced from Inr 2,500 to 5,500 per sq ft.

during 4Q 2012, developers put their project •construction work on the fast track, resulting in the completion of various projects/ phases of the projects including “meena elegant” by Gm Group at kaikhali; “Ideal heights phase I” by Ideal Group at sealdah and “shrestha Garden phase II” by shreshta construction pvt. Ltd at kalipark.

the capital values in the premium residential •market picked up this quarter across micro-markets in the range of 2-8% QoQ. however, micro-markets like pA shah road, tollygunge, salt Lake em Bypass and VIp road remained stable due to the abundant supply.

rental values remained stable due to subdued •commercial market sentiments in the city. Locations like the pA shah road, Alipore, Loudon street, Ballygunge, em Bypass and new town-rajarhat micro-markets reflected a marginal decline due to low demand and supply availability in these locations.

coLLIers VIeW:• residential sales volume in peripheral locations is likely to increase in coming quarters due to the affordability factor, infrastructure development and a decrease in interest rates. A few high-end projects are expected to be launched during the first half of the year. capital and rental values are expected to remain stable across the city, while southern kolkata may see a marginal increase due to limited availability of properties.

3000

1000

7000

5000

11000

9000

13000

15000

17000

Inr

per

sq.ft

.


2000

4000

0

6000

8000

10000

12000

14000

16000


forecast


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 BypassBallygunge Loudon road

Behela

Alipore tollygunge

p A shah roadnew town - rajarhat

VIp roadsalt Lake

1Q20

08

2Q20

08

3Q20

08

2Q20

10

4Q20

09

1Q20

10

4Q20

08

1Q20

09

2Q20

09

3Q20

09

3Q20

10

4Q20

10

1Q20

11

2Q20

11

3Q20

12

4Q20

12

1Q20

13f

2Q20

13f

3Q20

13f

4Q20

13f

2Q20

12

1Q20

12

4Q20

11

3Q20

11

Inr

per

sq.ft

.

40

30

20

10

0


Inr

per

sq.ft

. per

mon

th


INDIA | FEB 2013 | resiedential

pUne

KeY neW PrOJeCts


Amanora Gateway towers 1 hadapsar city corporation 1Q 2017 8,000 -11,000

dB Golf Links kalyani nagar dB realty 4Q 2014 12,000

Gagan Unnati kondhwa road Gagan properties 4Q 2014 6,000

Gagan krishnagan kondhwa road Gagan properties 4Q 2014 5,150

nyati equatorial Bavdhan the nyati Builders pvt. Ltd 2Q 2015 5,000

park Grandeur Baner pride Group 4Q 2015 7,250





4Q 2012 1Q 2013

capital Value

rental Value

new project

construction pace


pUNE

In 4Q 2012, numerous residential projects •were launched in locations like kalyani nagar, Baner, hadapsar, kharadi, Bavdhan, nIBm, Wakad and talegaon. new launches are priced between Inr 3,000-5,000 per sqft with the exception of high-end luxury projects located in kalyani nagar, hadapsar and Baner priced at Inr 8,000-12,000 per sq ft.

this quarter witnessed fairly high construction •activity enabling under-construction projects to welcome ready-possession units and registering a few completed projects mainly located in Baner, Bavdhan and chinchwad, priced between Inr 4,000-7,000 per sq ft.

capital prices in pune registered stable •growth with an upward trend due to numerous launches of luxury residential projects as well as rapid growth in western and southern areas. prices in areas such as Boat club road, camp, deccan, kalyani nagar, Viman nagar, kharadi, nIBm, Undri and kondhwa registered an increase of 6-7% QoQ from the previous quarter.

during 4Q 2012, rental values remained •stable in almost all of the micro-markets in pune due to stable demand, although minor fluctuations were registered in prime and developing areas.

coLLIers VIeW:• With developing infrastructure most preferred living areas in pune remain on the eastern and western sides. nevertheless, the southern and northern zones are quickly picking up as well in terms of new launches and under-construction developments, particularly in areas such as kothrud, talegaon, etc. In terms of sales activity, medium-priced projects quoting from Inr 3,000 - 5,000 per sq ft. tend to be absorbed faster due to affordability in comparison with the slow sales of high-end projects quoting above Inr 7,000 per sq ft.

1000

3000

7000

5000

9000

13000

11000

15000

Inr

per

sq.ft

.


11000

10000

8000

9000

7000

6000

5000

4000

3000

2000


forecast


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

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

3Q20

10

2Q20

11

1Q20

11

3Q20

11

4Q20

12

1Q20

12f

2Q20

12f

3Q20

12f

4Q20

12f

3Q20

12

2Q20

12

1Q20

12

4Q20

11

4Q20

10

kalyani nagar/Viman nagar/kharadi deccan/camp/Boat club/central pune

magarpatta/hadpsar Baner/hinjewadi/Wakad/pashan/Balewadi

kothrud/Bavdhan/Wajre nIBm/Undri/kondhwa

Inr

per

sq.ft

.In

r pe

r sq

.ft. p

er m

onth



india | FEB 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

Mumbai : Vaibhav kumar, office director [email protected] 31/A, 3rd floor, film center, 68, tardeo road, mumbai, India - 400 034. 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 - 110 001 tel : +91 11 3044 6423, fax : +91 11 3044 6500

Gurgaon : technopolis Building, 1st floor, dLf Golf course main road, sector 54, Gurgaon, India - 122 002 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

This book is printed on 100% Recyclable paper

india | FEB 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 | JANUARY | 2013

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Residential Property Market OverviewINDIA

QUARTERLY UPDATE | NOVEMBER | 2012

ASIA PACIFICOFFICE 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

www.colliers.com/india

Budget Highlights | Real Estate

Finance Minister Pranab Mukherjee started his budget speech 2012-13 in the backdrop of challenging macroeconomic scenario. The finance minister projects the economy to grow by 7.6% in the next fiscal up from 6.9% in 2011-12. He mentioned that due to adverse global economic sentiments there has been a slowdown in the Indian Economy but the fact is India still remains among the front runners in the economic growth in any cross country comparison. The budget aims at faster, sustainable and more inclusive growth across sectors emphasizing on five focus areas including revival of domestic consumption, rapid revival of high growth in private investment, removal of supply bottlenecks, addressing malnutrition in 200 high burden districts and expedite improvement in delivery system, governance and transparency.

From a real estate perspective, the budget remained silent on most of the major issues including status of STPIs (Software Technology Parks of India), Real Estate Regulatory Bill, Land Bill etc. however, it mentioned that efforts are on to arrive at a political consensus on the issue of allowing 51% Foreign Direct Investment (FDI) in multi-brand retail.

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

- External Commercial Borrowings (ECB) for low cost affordable housing projects. Impact: Real estate companies developing large affordable housing projects with large fund requirements will benefit the most from the easing of external commercial borrowing (ECB) norms as interest rate charged is lower in case of external borrowings in comparison to rates charged by domestic institutions.

- Increase in provision under Rural Housing Fund to INR 4,000 crore from the existing INR 3,000 crore.Impact: It will provide housing finance to targeted groups in rural areas at competitive rates.

- Extension of the existing scheme of interest subvention of 1% on housing loans up to INR 15 lakh where the cost of the house does not exceed INR 25 lakh for another year. Impact: This will boost the affordable housing segment by providing cheaper loan to the end users.

MARKET REACTION TO BUDGET

Q1 2012 | RESEARCH

Source: www.bseindia.com | Mar 16, 2012

Company Change (%)BSE SENSEX -1.19Realty Index -1.26Anant Raj Inds -6.04D B Realty -2.02DLF 0.15Godrej Properties -2.82HDIL -5.21Hubtown Ltd. -4.13Indiabulls Real Estate -1.95Mahindra Lifespaces -0.72Orbit Corp. -3.37Parsvnath Developers -4.04Peninsula Land -3.18Phoenix Mills -2.65Sobha Developers 3.04Sunteck Realty -1.13Unitech -1.68

UNION BUDGET 2012 -13

A SNEAK PREVIEW

P. 1 | COLLIERS INTERNATIONAL

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

india residential property market overview_feb 2013

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