residential snapshot q1 2017 - cushman & wakefield ... snapshot q1 2017 marketbeat economy...
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Residential Snapshot Q1 2017Ahmedabad
MARKETBEAT
www.cushmanwakefield.com
EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0%
during the October-December quarter of 2016, dropping 0.4
percentage points from the previous quarter’s 7.4%. The healthy
growth rate however, came in a quarter that was marked by
demonetization of the Rupee, which squeezed liquidity among
households. In February, the Consumer Price Index (CPI), a key
price indicator of the Reserve Bank of India (RBI) for policy
purposes, was seen at 3.6%, treading well below the
government’s target of 4% till 2021. While the RBI has not cut the
repo rate for the past five months, banks have reduced their term-
deposit rates post demonetization as they were flush with funds.
Further, several banks have also reduced their home loan rates
by up to 90 basis points, providing some cheer to homebuyers.
Following the cut in home loan rates, some rationalization in
prices of housing units and the enforcement of the Real Estate
(Regulation and Development) Act (RERA) in May, a pick-up in
residential sector is anticipated towards the latter half of 2017.
Market OverviewDismal launch activities. Ahmedabad recorded around 1,800
new units launched during the first quarter of 2017, a 33% decline
quarter-on-quarter (QoQ). Further, the average number of units
launched per project decreased from 343 in the previous quarter
to 116 in the current quarter, indicating a trend of launching
smaller-sized projects.
The West Peripheral submarket contributed majority (57%) of the
quarterly unit launches, led by heightened activity in Bopal. Well-
developed physical and social infrastructure in this submarket has
been fuelling the high demand and supply.
Mid-segment dominated. The mid-segment made up almost
90% of the overall unit launches, 35% of which was located in
Bopal. The share of unit launches in the affordable segment
declined to 6% from 17% in the previous quarter.
Capital and rental values remained stable. Both quoted capital
and rental values maintained their status-quo across all
submarkets as demand remained passive post demonetization.
However, buyers are getting reasonable discounts while closing
transactions.
OutlookLimited launch activities. Given the existing high levels of
unsold inventory, the number of unit launches is likely to be
restrained in the upcoming quarter. In addition, developers are
adopting a wait-and-see strategy as they want to understand the
implications of the roll out of the Goods & Services Tax (GST) on
costs and prices and also the impending implementation of RERA.
<CITY> OFFICERENTAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rent (INR/Mth)
% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
Central 20,000-100,000 0% 0%
West 18,000-100,000 0% 0%
Mid Segment
Central 7,000-25,000 0% 0%
North 5,000-12,000 0% 0%
South 4,500-15,000 0% 0%
West 8,000-30,000 0% 0%
West Peripheral 8,000-30,000 0% 0%
East 4,000-12,000 0% 0%
CAPITAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rate (INR/sf)
% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
Central 5,500-8,000 0% 0%
West 5,500-8,000 0% 0%
Mid Segment
Central 4,500-6,500 0% 6%
North 2,700-4,500 0% 3%
South 1,900-5,000 0% -2%
West 3,500-6,500 0% -2%
West Peripheral 2,800-5,500 0% 0%
East 1,800-4,000 0% 0%
Increase DecreaseStable
Residential Snapshot Q1 2017Ahmedabad
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
STATS ON THE GO
Significant Projects Launched in Q1 2017
Building Location Developer Units Launched Rate* (INR/SF)
Aavishkar Bopal Aaryan Builders 350 2,650
Swagat Pelican Sargasan Swagat Group 276 3,111
Significant Projects Under Construction in Q1 2017
Building Location Developer Est. Number Of Units Expected Completion
Godrej Garden City Ranip Godrej Properties 920 Q2 2017
Iscon Platinum Bopal JP Iscon Group 600 Q4 2017
Significant Construction Completions in Q1 2017
Building Location Developer Est. Number Of Units Unit Size (SF)
Krupal Heritage Prahladnagar Narayankrupa Infra 119 1,308 - 1,841
NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges,
etc.
The above values for high-end segment are for units typically of 1,600-3,000 sf
The above values for mid segment are for units typically of 900-1,800 sf
KEY TO SUBMARKETS
High-end Segment
Central: C.G. Road, Ashram Road, Navrangpura, Gulbai Tekda
West: Vastrapur, Satellite, Thaltej, Prahladnagar
Mid Segment
Central: C.G. Road, Ashram Road, Navrangpura, Gulbai Tekda
North: Ram Nagar, Sabarmati, Motera, Chandlodia, Ranip, Chandkheda, Gota, Vaishnodevi
South: Maninagar, Narol, Vatwa, Ghodasar
West: Vastrapur, Satellite, Thaltej, Prahladnagar, Makarba, Vejalpur
West Peripheral: Bopal, South Bopal, Ambli, Ghuma
East: Naroda, Nikol, Hansol, Odhav, Vastral
Residential Snapshot Q1 2017BENGALURU, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0%
during the October-December quarter of 2016, dropping 0.4
percentage points from the previous quarter’s 7.4%. The healthy
growth rate however, came in a quarter that was marked by
demonetization of the Rupee, which squeezed liquidity among
households. In February, the Consumer Price Index (CPI), a key
price indicator of the Reserve Bank of India (RBI) for policy
purposes, was seen at 3.6%, treading well below the government’s
target of 4% till 2021. While the RBI has not cut the repo rate for the
past five months, banks have reduced their term-deposit rates post
demonetization as they were flush with funds. Further, several banks
have also reduced their home loan rates by up to 90 basis points,
providing some cheer to homebuyers. Following the cut in home loan
rates, some rationalization in prices of housing units and the
enforcement of the Real Estate (Regulation and Development) Act
(RERA) in May, a pick-up in residential sector is anticipated towards
the latter half of 2017.
Market OverviewNew launches improved during the quarter. Overall unit launches
grew threefold from the previous quarter and stood at 4,200 units
driven by large project launches by developers. Average number of
units launched per project was close to 600. 17% of all units
launched this quarter were in the affordable segment with around
17% of the units having smaller configurations such as one
bedroom-hall-kitchen (BHK) and one room-kitchen (RK) to attract
buyers through lower prices. This also pushed the average size
down to 980 square feet (sf) per unit, a 40% decrease quarter-on-
quarter (QoQ).
After demonetization in the previous quarter, buyers are still cautious
and are postponing their buying decisions as they await the setting
up of the Real Estate Regulatory Authority (RERA) and
implementation of the Goods & Services Tax (GST) in the next
quarter. These ensure protection against malpractices and provide
benefits of transparency and rationalization in prices.
Capital values dipped while rental values remained range
bound. The prolonged slowdown in sales and the pressure of
mounting inventory has compelled many developers to reduce the
average base price in almost all the submarkets and across all
segments. At the same time, prices in Central, Off-Central and West
submarkets remained stable.
OutlookLaunches in the affordable segment likely to grow. With the
infrastructure status awarded to affordable housing, developers are
increasingly interested in launching projects in the segment. While
the implementation of RERA and GST may motivate buyers to
invest, quoted capital and rental values are expected to remain
stable.
CAPITAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rate (INR/Sf)% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
Central 18,000-30,000 0% 0%
South 7,000-10,500 -11% -8%
Off Central 9,000-12,000 0% 0%
East 6,500-10,000 -8% -8%
North 7,000-11.000 -1% 0%
North-West 8,000-11,000 -2% -2%
Mid Segment
Central 9,500-13,000 0% 0%
East 4,300-5,700 -3% -2%
South-east 4,500-6,500 -3% -2%
North 4,500-6,000 -9% -8%
South 4,500-6,500 -2% 2%
Off Central-I 7,000-10,000 0% 0%
Off Central-II 6,500-8,500 -1% -1%
North-west 6,000-6,750 2% 2%
Far South 3,750-4,500 -1% 0%
West 4,000-5,000 0% 1%
RENTAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rent (INR/Mth)% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
Central 120,000-350,000 0% 0%
South 60,000-120,000 0% -14%
Off Central 60,000-150,000 0% -14%
East 70,000-300,000 0% -18%
North 60,000-150,000 0% 0%
North-West 50,000-100,000 0% 0%
Mid Segment
Central 70,000-100,000 0% 0%
East 25,000-40,000 0% 0%
South-east 25,000-45,000 0% 0%
North 20,000-35,000 0% 0%
South 25,000-40,000 0% 0%
Off Central-I 40,000-70,000 0% 0%
Off Central-II 30,000-50,000 0% 0%
North-west 25,000-35,000 0% 0%
Far South 20,000-30,000 0% 0%
West 20,000-30,000 0% 0%
Increase DecreaseStable
Residential Snapshot Q1 2017BENGALURU, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc.
The above values for high-end segment are for units typically of 2,000-4,000 sf
The above values for mid segment are for units typically of 1,600-2,000 sf
KEY TO SUBMARKETS
High-end Segment
Central: Lavelle Road, Palace Cross Road, Off Cunningham Road, Ulsoor Road, Richmond Road, Sankeys Road
South: Koramangala, Bannerghatta Road, JP Nagar, Banashankari
Off Central: Frazer town, Benson Town, Richards Town, Dollars Colony
East: Whitefield, Old Airport Road
North: Hebbal, Jakkur, Devanahalli
North-west: Malleshwaram, Rajajinagar, Yeshwantpur
Mid Segment
Central: Brunton Road, Artillery Road, Ali Askar Road, Cunningham Road
East: Marathahalli, Whitefield, Old Airport Road, Old Madras Road, Budigere Cross
South-east: Sarjapur Road, Outer Ring Road (Marathahalli- Sarjapur), HSR Layout, Hosur Road
South: Jayanagar, J P Nagar, Kanakapura Road, Bannerghatta Road, BTM Layout, Banashankari
North: Hebbal, Bellary Road, Yelahanka, Doddaballapur Road, Hennur Road, Thanisandara Road
Off Central-I: Vasanth Nagar, Richmond Town, Indiranagar
Off Central-II: Cox Town, Frazer Town, Benson Town, etc.
North-west: Malleshwaram, Rajajinagar, Tumkur Road
Far South: Electronic City
West: Mysore Road, Uttarahalli Main Road, Magadi Road
STATS ON THE GO
Significant Projects Launched in Q1 2017
Building Location Developer Units Launched Rate* (INR/SF)
Sobha Palm Court Kogilu Main Road Sobha Developers 294 6,100
GM Infinite Elegance Tower Electronic City GM Group 285 4,299
Significant Projects Under Construction in Q1 2017
Building Location Developer Est. Number Of Units Expected Completion
Shriram Chirping Woods Harlur Road Shriram Properties 958 Q3 2017
Brigade Exotica Old Madras Road Brigade Group 454 Q3 2017
Significant Construction Completions in Q1 2017
Building Location Developer Est. Number of Units Unit Size (SF)
HM Indigo Kanakpura Road HM Constructions 103 1,248 – 1,593
Residential Snapshot Q1 2017CHENNAI
MARKETBEAT
www.cushmanwakefield.com
CAPITAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rate (INR/Sf)% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
Central 23,000-32,000 0% 1%
Off Central-I 18,000-22,000 0% 0%
Off Cenral-II 12,000-17,000 0% 1%
East Coast Road 6,000-9,500 0% 5%
Mid Segment
Central 14,000-18,000 0% 0%
Off Central-I 15,000-18,000 0% 0%
Off Central-II 9,000-15,000 0% 2%
Suburban South-I 5,000-7,000 0% 7%
Suburban South-II 4,000-7,000 0% 5%
Peripheral South-I 3,200-5,000 0% 5%
Peripheral South-II 3,200-4,500 0% 6%
Suburban North 4,200-7,000 0% 4%
Suburban West 4,400-6,500 0% 7%
East Coast Road 4,500-6,000 0% 0%
RENTAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rent (INR/Mth)
% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
Central 100,000-250,000 0% 0%
Off Central-I 90,000-130,000 0% 0%
Off Cenral-II 50,000-150,000 0% 0%
East Coast Road 100,000-250,000 0% 0%
Mid Segment
Central 50,000-75,000 0% 0%
Off Central-I 45,000-80,000 0% 0%
Off Cenral-II 25,000-50,000 0% 0%
Suburban South-I 22,000-32,000 0% 0%
Suburban South-II 15,000-25,000 0% 0%
Peripheral South-I 18,000-25,000 0% 0%
Peripheral South-II 8,000-15,000 0% 0%
Suburban North 10,000-18000 0% 0%
Suburban West 7000-15000 0% 0%
East Coast Road 50000-100000 0% 0%
EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0%
during the October-December quarter of 2016, dropping 0.4
percentage points from the previous quarter’s 7.4%. The healthy
growth rate however, came in a quarter that was marked by
demonetization of the Rupee, which squeezed liquidity among
households. In February, the Consumer Price Index (CPI), a key
price indicator of the Reserve Bank of India (RBI) for policy
purposes, was seen at 3.6%, treading well below the government’s
target of 4% till 2021. While the RBI has not cut the repo rate for the
past five months, banks have reduced their term-deposit rates post
demonetization as they were flush with funds. Further, several
banks have also reduced their home loan rates by up to 90 basis
points, providing some cheer to homebuyers. Following the cut in
home loan rates, some rationalization in prices of housing units and
the enforcement of the Real Estate (Regulation and Development)
Act (RERA) in May, a pick-up in residential sector is anticipated
towards the latter half of 2017.
Market OverviewLaunches remain subdued. New unit launches during the quarter
stood at about 1,000 units, a 24% growth from the previous quarter.
However, the number of unit launches continue to be lower than the
amount seen prior to demonetization (more than 1,500 units). Also,
with the RERA expected to be implemented in the next quarter,
developers are focusing on completing existing under-construction
projects. Mid-segment continued to dominate launch activities,
making up 75% of the overall share. The affordable and the high-
end segments each comprised 12% of the overall launches. The
micro-markets of Sholinganallur (Peripheral South-I) and Perambur
(Suburban North) recorded substantial launch activities in the mid-
segment with 34% and 28%, respectively. Sholinganallur, located in
south Chennai, is a preferred location for employees working in the
Information Technology (IT) corridor in this area. In addition, both
Perambur, as well as Sholinganallur, have well established
infrastructure and are well connected to different parts of the city,
fuelling strong demand for residential projects in these locations.
Rental and capital values remained stable Quoted rental and
capital values remained stable across submarkets. However, most
developers sold their stock at discounted prices, especially slow-
moving projects and projects in the luxury segment due to the drop
in demand post demonetization.
OutlookLaunches to remain moderate. New launches in the upcoming
quarter are likely to remain modest due to the restrained buying
sentiment prevailing in the market. Capital and rental values are
likely to remain flat across markets due to abundant supply and
moderate demand.Increase DecreaseStable
# Submarkets have been redefined, capital and rental values have been
recalibrated historically.
Residential Snapshot Q1 2017CHENNAI
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
STATS ON THE GO
Significant Projects Launched in Q1 2017
Building Location Developer Units Launched Rate* (INR/SF)
Chandrika Tiruporur Arun Excello 124 3,398
Olympia Jayanthi Residences Thiruvanmiyur Olympia 54 14,000
Significant Projects Under Construction in Q1 2017
Building Location Developer Est. Number Of Units Expected Completion
KG Earth Homes SiruseriKG Developers & Promoters
176 Q2 2017
Significant Construction Completions in Q1 2017
Building Location Developer Est. Number of Units Unit Size (SF)
Sidharth Upscale Porur Sidharth Housing 388 476 – 2,663
TVH Quadrant Adyar True Value Homes 126 2,235-5,560
NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc.
The above values for high-end segment are for units typically of 2,000-4,000 sf
The above values for mid segment are for units typically of 1,600-2,000 sf
KEY TO SUBMARKETS
Central: Boat Club, Poes Garden, Nungambakkam
Off Central-I: R.A. Puram, Abhiramapuram, Alwarpet and Teynampet
Off Central-II: T.Nagar, Mylapore, Annanagar, Kilpauk, Thiruvanmiyur, Adyar, Kotturpuram, Besant Nagar, K.K.Nagar, Velachery, Vadapalani
Suburban (North): Madhavaram, Perambur,Thondiarpet
Suburban (South-I): Pre-toll Rajiv Gandhi Salai (Thiruvanmiyur to Sholinganallur)
Suburban South-II: GST Road (Alandur to Tambaram), Porur
Peripheral South-I: Post-toll Rajiv Gandhi Salai (Sholinganallur to Kelambakkam)
Peripheral South-II: GST Road (Perungalathur to Singaperumal Koil), Oragadam
Suburban West: Mogappair, Nolumbur, Ambattur, Poonamallee High Road
Residential Snapshot Q1 2017DELHI-NCR, INDIA
MARKETBEAT
www.cushmanwakefield.com
CAPITAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rate (INR/sf)% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
South-west 35,000-53,000 -3% -6%
South-east 24,000-35,000 0% -4%
South-central 25,000-43,000 -1% -2%
Central 60,000-90,000 0% 0%
Gurgaon Luxury 19,200-26,000 0% 0%
Gurgaon High-
end
10,750-16,200 -2% -2%
Noida 7,000-9,000 -3% -3%
Mid Segment
South-east 20,000-25,000 -3% -3%
South-central 23,750-33,250 0% 0%
Gurgaon 7,500-10,000 -3% -3%
Noida 4,200-6,500 -3% -7%
RENTAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rent (INR/Mth)% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
South-west 225,000-425,000 0% -13%
South-east 90,000-225,000 0% -17%
South-central 150,000-275,000 0% -11%
Central 250,000-550,000 0% -3%
Gurgaon Luxury 200,000-275,000 0% -10%
Gurgaon High-
end
65,000-175,000 0% -11%
Noida 50,000-100,000 0% 0%
Mid Segment
South-east 85,000-160,000 0% -3%
South-central 90,000-170,000 0% -3%
Gurgaon 40,000-90,000 0% 0%
Noida 25,000-45,000 0% 0%
EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0%
during the October-December quarter of 2016, dropping 0.4
percentage points from the previous quarter’s 7.4%. The healthy
growth rate however, came in a quarter that was marked by
demonetization of the Rupee, which squeezed liquidity among
households. In February, the Consumer Price Index (CPI), a key
price indicator of the Reserve Bank of India (RBI) for policy
purposes, was seen at 3.6%, treading well below the government’s
target of 4% till 2021. While the RBI has not cut the repo rate for the
past five months, banks have reduced their term-deposit rates post
demonetization as they were flush with funds. Further, several
banks have also reduced their home loan rates by up to 90 basis
points, providing some cheer to homebuyers. Following the cut in
home loan rates, some rationalization in prices of housing units and
the enforcement of the Real Estate (Regulation and Development)
Act (RERA) in May, a pick-up in residential sector is anticipated
towards the latter half of 2017.
Market OverviewSignificant improvement in new launch activities. New unit
launches increased 75% from the previous quarter at 3,500 units,
indicating a resurgence in developers’ interests in launching new
units. Gurgaon witnessed a higher concentration of new launches
during the quarter with a share of 67%, while the balance was
contributed by Noida. Gurgaon continued its lead over Noida with
respect to new launches on account of its relatively higher demand
potential emanating from a strong commercial office sector. The
micro-markets of New Gurgaon and Dwarka Expressway, located
inside Gurgaon and Greater Noida West in Noida, attracted majority
of the launches during the first quarter of 2017. Nearly 46% of the
unit launches were recorded in the mid-segment, followed by the
high-end segment at 33%. Launches in the high-end segment were
concentrated primarily in the Noida.
Stable rental values while capital values decline. Rental values
maintained their status quo during the quarter on account of steady
demand. In the backdrop of continued lackluster sales combined
with inventory overhang, quoted capital values softened by 1-3% in
both the mid- and high-end segments across most of the
submarkets as actual sales are taking place at discounted prices.
OutlookLaunches to remain at similar levels. Launches are expected to
maintain a steady pace in the upcoming quarter with a higher focus
on the affordable segment. Capital values in Gurgaon and Noida are
likely to remain under pressure due to high unsold inventory and
expected slower sales.
IncreaseDecreaseStable
Residential Snapshot Q1 2017DELHI-NCR, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
STATS ON THE GO
Significant Projects Launched in Q1 2017
Building Location Developer Units Launched Rate* (INR/SF)
ROF Ananda Gurgaon ROF Infratech 750 4,000
Raheja Vanya Gurgaon Raheja Developers 500 4,475
Significant Projects Under Construction in Q1 2017
Building Location Developer Est. Number Of Units Expected Completion
Diplomatic Greens Ph-2 Gurgaon Puri Construction 700 Q2 2017
The Primus Gurgaon DLF 624 Q2 2017
Significant Construction Completions in Q1 2017
Building Location Developer Est. Number of Units Unit Size (SF)
Regal Gardens Gurgaon DLF 524 1,693 – 2,215
NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc.
The above values for high-end segment are for units typically of 2,000-4,000 sf
The above values for mid segment are for units typically of 1,600-2,000 sf
KEY TO SUBMARKETS
High-end Segment
South-west: Shanti Niketan, Westend, Anand Niketan, Vasant Vihar, etc.
South-east: Friends Colony East, Friends Colony West, Maharani Bagh, Greater Kailash – I, Greater Kailash – II, etc.
South-central: Defence Colony, Anand Lok, Niti Bagh, Gulmohar Park, Hauz Khas Enclave, Safdarjung Development Area, Mayfair Gardens, Panchsheel Park, Soami
Nagar, Sarvaodaya Enclave, etc.
Central: Jorbagh, Golf Links, Amrita Shergil Marg, Aurangzeb Road, Prithviraj Road, Sikandara Road, Tilak Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar,
Nizamuddin, Tees January Marg, Chanakyapuri, etc.
Gurgaon-Luxury: Golf Course Road
Gurgaon-High end: Golf Course Road, Mehrauli-Gurgaon Road, Golf Course Extension Road, Sohna Road, Central Gurgaon and Dwarka Expressway
Noida: Sectors 34-37, 39-41, 44, 50, 51, 92, 93, 96-98, 128 and 133
Mid Segment
South-east: New Friends Colony, Kalindi Colony, Ishwar Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave, etc.
South-central: Uday Park, Green Park, Saket, Asiad Village, Geetanjali Enclave, Safdarjung Enclave, Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar, etc.
Gurgaon: Sohna Road (Sectors 38, 47-49), Southern Peripheral Road, New Gurgaon, Dwarka and Sohna
Noida: Sectors 50, 74-79, 82, 83, 110, 112, 115-121, 134, 135, 137, 143, 150, 151 and 168), Greater Noida and Yamuna Expressway
Road
Residential Snapshot Q1 2017HYDERABAD
MARKETBEAT
www.cushmanwakefield.com
Miyapur, Nizampet 10,000-17,500 4% 4%
CAPITAL VALUES AS OF Q1 2017
High-end Segment
Submarket Average Quoted
Rate (INR/sf)% Change From Short Term
Outlook3 Mth
Ago
1 Yr
Ago
Banjara Hills 8,000-11,000 0% 3%
Jubilee Hills 8,000-11,000 1% 6%
Himayathnagar 4,500-5,500 0% 7%
West & East Marredpally 4,000-5,500 0% 0%
Begumpet, Somajiguda 4,500-6,500 0% 0%
Madhapur, Gachibowli 4,500-6,500 0% 4%
Kukatpally 4,000-6,000 0% 1%
Kompally 3,200-4,200 0% 0%
Mid Segment
Banjara Hills 4,000-6,000 0% 0%
Jubilee Hills 4,000-5,500 0% 0%
Himayathnagar 3,500-4,500 0% 0%
West & East Marredpally 3,500-4,250 0% 0%
Begumpet, Somajiguda 3,500-4,500 0% 0%
Madhapur, Gachibowli 3,750-5,000 0% 3%
Kukatpally 3,500-4,300 0% 1%
Miyapur, Nizampet 3,000-4,000 0% 1%
RENTAL VALUES AS OF Q1 2017
High-end Segment
Submarket Average Quoted
Rent (INR/Mth)
% Change From Short Term
Outlook3 Mth
Ago
1 Yr
Ago
Banjara Hills 58,000-150,000 0% 0%
Jubilee Hills 57,000-150,000 0% 0%
Himayathnagar 20,000-36,000 0% 4%
West & East Marredpally 20,000-33,000 0% 0%
Begumpet, Somajiguda 27,000-45,000 0% 0%
Madhapur, Gachibowli 30,000-70,000 0% 0%
Kukatpally 20,000-39,000 0% 0%
Mid Segment
Banjara Hills 22,000-30,000 0% 0%
Jubilee Hills 23,000-30,000 0% 0%
Himayathnagar 13,500-16,000 5% 7%
West & East Marredpally 13,000-17,500 7% 7%
Begumpet, Somajiguda 13,000-17,500 0% 0%
Madhapur, Gachibowli 17,500-25,000 0% 0%
Kukatpally 13,500-20,000 8% 8%
EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0%
during the October-December quarter of 2016, dropping 0.4
percentage points from the previous quarter’s 7.4%. The healthy
growth rate however, came in a quarter that was marked by
demonetization of the Rupee, which squeezed liquidity among
households. In February, the Consumer Price Index (CPI), a key
price indicator of the Reserve Bank of India (RBI) for policy
purposes, was seen at 3.6%, treading well below the government’s
target of 4% till 2021. While the RBI has not cut the repo rate for the
past five months, banks have reduced their term-deposit rates post
demonetization as they were flush with funds. Further, several
banks have also reduced their home loan rates by up to 90 basis
points, providing some cheer to homebuyers. Following the cut in
home loan rates, some rationalization in prices of housing units and
the enforcement of the Real Estate (Regulation and Development)
Act (RERA) in May, a pick-up in residential sector is anticipated
towards the latter half of 2017.
Market OverviewDip in launch activities. New unit launches in the first quarter of
2017 recorded a 16% decline quarter-on-quarter (QoQ) at about
1,800 units. Developers are deferring their launches in the wake of
the current slowdown in sales and are focusing instead on offering
ready-to-move in properties to buyers. The launch of a large project
in Nizampet led to the micromarket taking a 63% share of the total
unit launches. This was followed by the submarkets of Madhapur
and Gachibowli, who have a combined 30% share of unit launches.
Majority of the launches in the quarter were the mid-segment (62%),
followed by the affordable segment. Due to steady demand from
Information Technology-Business Process Management (IT-BPM)
employees and its close proximity to the Hi-Tech city, the
submarket of Miyapur-Nizampet has witnessed an increase in
demand as a residential market.
Quoted capital values remained steady, rental appreciation in
select submarkets. Rental values in the submarkets of Kukatpally
and Miyapur-Nizampet increased 8% and 4%, respectively due to
higher demand from IT-BPM employees. While the quoted capital
values across most submarkets remained steady during this
quarter, small and unorganized developers were offering sweeter
packages and incentives to close deals for genuine buyers.
OutlookLaunch activities to remain subdued. As developers are likely to
focus on completing existing under-construction projects, new
launches are expected to be limited in the upcoming quarter. In
addition, capital and rental values are expected to remain stable in
the upcoming quarter.
Increase DecreaseStable
Residential Snapshot Q1 2017HYDERABAD
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
STATS ON THE GO
Significant Projects Launched in Q1 2017
Building Location Developer Units Launched Rate* (INR/SF)
Regalia Kokapet Rajapushpa 490 4,200
Shreerath Apartment Nizampet Unnati Group 1,064 3,500
Significant Projects Under Construction in Q1 2017
Building Location Developer Est. Number Of Units Expected Completion
My Home Avatar II Narsingi My Home Constructions 1,390 Q1 2018
Serene Park Kondapur Aparna Constructions 1,900 Q1 2019
Significant Construction Completions in Q1 2017
Building Location Developer Est. Number Of Units Unit Size (SF)
Carlton Creek Khajaguda Jain Housing & Constructions Ltd. 1,664 758 – 1,364
NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc.
The above values for high-end segment are for units typically of 2,000-4,000 sf
The above values for mid segment are for units typically of 1,600-2,000 sf
Residential Snapshot Q1 2017KOLKATA, INDIA
MARKETBEAT
www.cushmanwakefield.com
RENTAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rent (INR/Mth)
% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
South 63,000-85,000 0% 0%
South-central 100,000-165,000 0% 0%
South-east# 40,000–85,000 0% 0%
South-west 100,000-185,000 0% 0%
Central 85,000-155,000 0% 0%
East 38,000-68,000 0% 0%
North 35,000-70,000 0% 0%
North-east 43,000-66,000 0% 0%
Mid Segment
South 20,000-35,000 0% 0%
South-central 28,000-36,000 0% 0%
South-east# 20,000-35,000 0% 0%
North-east# 15,000-25,000 0% 0%
North 16,500-31,000 0% 0%
EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0%
during the October-December quarter of 2016, dropping 0.4
percentage points from the previous quarter’s 7.4%. The healthy
growth rate however, came in a quarter that was marked by
demonetization of the Rupee, which squeezed liquidity among
households. In February, the Consumer Price Index (CPI), a key
price indicator of the Reserve Bank of India (RBI) for policy
purposes, was seen at 3.6%, treading well below the
government’s target of 4% till 2021. While the RBI has not cut
the repo rate for the past five months, banks have reduced their
term-deposit rates post demonetization as they were flush with
funds. Further, several banks have also reduced their home loan
rates by up to 90 basis points, providing some cheer to
homebuyers. Following the cut in home loan rates, some
rationalization in prices of housing units and the enforcement of
the Real Estate (Regulation and Development) Act (RERA) in
May, a pick-up in residential sector is anticipated towards the
latter half of 2017.
Market OverviewDip in new unit launches. The first quarter of 2017 recorded a
40% decline in new unit launches at around 2,400 units. The
decline was noted after a strong momentum in launch activities
in the previous two quarters. Average number of units per project
decreased from 582 in the previous quarter to 243 in the current
quarter, indicating a trend of launching relatively small-sized
projects. The north-east submarket of Rajarhat had the highest
contribution (58%) to new unit launches during the quarter,
followed by combined 28% share for the peripheral submarkets
of Barasat and BT Road in the north.
In a trend similar to the previous quarter, developers maintained
their focus on the affordable segment, which contributed 85% of
the total new launches. The submarkets of Rajarhat, Barasat and
BT Road recorded almost all of the launches in the affordable
category. The mid-segment made up about 10% of the newly
launched units, mainly in the southern submarkets of
Narendrapur, Nayabad, and EM Bypass.
Capital and rental values remained unchanged. Quoted
capital values in both the high-end and mid-segments maintained
their status quo during the quarter, as developers continued to
hold on to the prevailing market rates despite the lower sales
momentum. Rental values also remained broadly unchanged
from the previous quarter due to steady demand and adequate
availability in the market.
OutlookPrices expected to remain unchanged. Quoted capital and
rental values are expected to remain stable over the next
quarter. New unit launches are likely to remain at similar levels
as this quarter.
CAPITAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rate (INR/sf)
% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
South 7,500-13,000 0% 7%
South-central 12,500-18,500 0% -1%
South-east 6,200-12,500 0% 0%
South-west 12,000-17,000 0% 2%
Central 12,000-19,500 0% 4%
North 6,500-9,500 0% 8%
East 5,000-7,750 0% 8%
North-east 4,350-6,500 0% 8%
Mid Segment
South 4,000-6,700 0% 6%
South-central 5,900-9,250 0% 0%
South-east 3,000-5,550 0% 8%
North-east 2,900-4,250 0% 5%
North 3,150-6,200 0% 7%
Increase Stable Decrease
Residential Snapshot Q1 2017KOLKATA, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
STATS ON THE GO
Significant Projects Launched in Q1 2017
Building Location Developer Units Launched Rate* (INR/SF)
Usashi King Town Barasat Usashi Real Estate 586 2,094
Rajwada Grand Avenue Narendrapur Rajwada Group 90 3,800
Significant Projects Under Construction in Q1 2017
Building Location Developer Est. Number Of Units Expected Completion
Deeshari Megacity Sonarpur Deeshari Group 855 Q2 2017
Significant Construction Completions in Q1 2017
Building Location Developer Est. Number of Units Unit Size (SF)
Godrej Platinum Alipore Godrej Properties 120 3,762 – 5,075
NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc.
The above values for high-end segment are for units typically of 2,000-4,000 sf
The above values for mid segment are for units typically of 1,000-2,000 sf
KEY TO SUBMARKETS
High-end Segment
South: Southern Avenue, Hindustan Park, Triangular Park, Lake Terrace
South-central: Ballygunge, Queens Park, Rainy Park, Gurusaday Road, Ballyguange Circular Road, Dover Lane
South-east: EM Bypass - Science City, Christopher Road, Pancha Sayar
South-west: Alipore Park Road, Ashoka Road, Burdwan Road, Belvedere Road
Central: Park Street, Camac Street, Shakespeare Sarani, Minto Park, Elgin Road, Lee Road, Loudon Street, Rowdon Street
North: Kankurgachi, Lake Town, VIP Road, Ultadanga, Narkeldanga Main Road
East: Salt Lake
North-east: New Town, Rajarhat
Mid Segment
South: Golf Green, Tollygunge, Lake Gardens, Jodhpur Park
South-central: Deshpriya Park, Hazra Road, Bhawanipur
South-east: Ajoy Nagar, Hiland Park, PA Shah Connector
North-east: Rajarhat, Rajarhat Chowmatha
South-west: Tollyguange Circular Road, New Alipore, Behala, Jones Lang Sarani
North: Jessore Road, Ultadanga, Shyambazar, Bagbazar, Girish Park, Manicktala, Dum Dum
North-peripheral: BT Road, Barasat, Madhyamgram, Sodepur
South-peripheral: Garia, Narendrapur, Sonarpur,
South-west peripheral**: Joka, Maheshtala, Budge Budge, Thakurpukur
Residential Snapshot Q1 2017MUMBAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
<CITY> OFFICERENTAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rent (INR/Mth)
% Change From Short
Term
Outlook3 Mth
Ago
1 Yr
Ago
South 60,000-700,000 0% 0%
South Central 50,000-550,000 0% 0%
Eastern Suburbs 25,000-400,000 0% 0%
Western Suburbs
– Prime50,000-800,000 0% 0%
Western Suburbs 25,000-220,000 0% 0%
Mid Segment
Eastern Suburbs 18,000-70,000 0% 0%
Western Suburbs 20,000-80,000 0% 0%
Thane 14,000-28,000 0% 0%
Navi Mumbai 10,000-50,000 0% 0%
CAPITAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rate (INR/sf)
% Change From Short
Term
Outlook3 Mth
Ago
1 Yr
Ago
South 40,000-83,000 0% 2%
South Central 23,000-80,000 -2% 3%
Eastern Suburbs 12,000-40,000 2% 0%
Western Suburbs
– Prime18,000-50,000 0% 5%
Western Suburbs 12,000-35,000 0% 1%
Mid Segment
Eastern Suburbs 10,000-25,000 0% 3%
Western Suburbs 9,000-26,000 0% 5%
Thane 7,000-14,000 0% 5%
Navi Mumbai 5,000-15,000 0% 4%
Increase DecreaseStable
EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0%
during the October-December quarter of 2016, dropping 0.4
percentage points from the previous quarter’s 7.4%. The healthy
growth rate however, came in a quarter that was marked by
demonetization of the Rupee, which squeezed liquidity among
households. In February, the Consumer Price Index (CPI), a key price
indicator of the Reserve Bank of India (RBI) for policy purposes, was
seen at 3.6%, treading well below the government’s target of 4% till
2021. While the RBI has not cut the repo rate for the past five months,
banks have reduced their term-deposit rates post demonetization as
they were flush with funds. Further, several banks have also reduced
their home loan rates by up to 90 basis points, providing some cheer
to homebuyers. Following the cut in home loan rates, some
rationalization in prices of housing units and the enforcement of the
Real Estate (Regulation and Development) Act (RERA) in May, a
pick-up in residential sector is anticipated towards the latter half of
2017.
Market OverviewUnit launches increased. Overall unit launches increased 21% from
the previous quarter at nearly 6,900 units. This was led by the launch
of new phase in a township project which accounted for 40% of the
total unit launches in the submarket of Kalyan/Dombivli. Kandivali in
the Western suburbs accounted for 36% of unit launches driven by
local developers, The share of large-sized apartments, three
bedroom-hall-kitchen (BHK) and more, declined to 17% from 22% in
the previous quarter as developers are slowing down on the high-end
and luxury segments.
Nearly 54% of the unit launches were recorded in the mid-segment,
followed by the affordable segment at 41%. Thane continued its
momentum and recorded the maximum unit launches within the
affordable (71%) and mid (37%) segments. The buoyancy in launches
reflects the focused efforts of the government to increase supply
through supportive policy and infrastructure initiatives.
Rental and capital values largely remained range-bound. Rental
values remained range-bound across most of the submarkets during
the quarter. Quoted capital values in South Central Mumbai softened
2% on the back of slower sales and higher supply. At the same time,
quoted capital values increased 2% in the Eastern Suburbs due to
favourable responses for select projects in Kanjurmarg and Vikhroli.
However, buyers are getting reasonable discounts on actual sales in
slow-moving markets.
OutlookLimited launch activities. New unit launches are expected to decline
as developers gear-up for RERA and the roll-out of the Goods and
Services Tax (GST), both of which will have impact on their costs and
prices. Capital values in South Central Mumbai are likely to be under
pressure due to higher amount of under-construction units and slow
demand.
Residential Snapshot Q1 2017MUMBAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
STATS ON THE GO
Significant Projects Launched in Q1 2017
Building Location Developer Units Launched Rate* (INR/SF)
Lodha Central Park Dombivali Lodha Group 2,500 5,500
Siddha Seabrook Kandivali Siddha Group. 261 18,000
Significant Projects Under Construction in Q1 2017
Building Location Developer Est. Number Of Units Expected Completion
Sky City Borivali Oberoi Realty 1,080 Q2 2021
Central Park Chembur Radius Developers 650 Q4 2020
Significant Construction Completions in Q1 2017
Building Location Developer Est. Number Of Units Unit Size (SF)
Signia Pearl Bandra-Kurla Complex Sunteck Developers 80 3,593-3,700
NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc.
The above values for high-end segment are for units typically of 1,200-3,000 sf
The above values for mid segment are for units typically of 800-1,400 sf
KEY TO SUBMARKETS
High-end Segment
South: Colaba, Cuffe Parade, Nariman Point, Churchgate, Altamount Road, Carmichael Road, Malabar Hill, Napeansea Road, Breach Candy, Pedder Road, Tardeo
South Central: Worli, Prabhadevi, Lower Parel / Parel, Dadar, Matunga
Eastern Suburbs: Wadala, Sion, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali
Western Suburbs - Prime: Bandra, Khar, Santacruz, Juhu
Western Suburbs: Andheri, Vile Parle, Jogeshwari, Goregaon, JVLR, Malad
Mid Segment
Eastern Suburbs: Sion, Wadala, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali, Kanjurmarg, Bhandup, Mulund
Western Suburbs: Andheri, Jogeshwari, Goregaon, JVLR, Malad, Kandivali, Borivali, Dahisar
Thane: Thane, Ghodbunder Road
Navi Mumbai: Airoli, Ghansoli, Rabale, Koparkhairane, Vashi, Turbhe, Sanpada, Nerul, Belapur, Kharghar, Panvel
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
Residential Snapshot Q1 2017Pune
MARKETBEAT
www.cushmanwakefield.com
EconomyIndia’s Gross Domestic Product (GDP) growth softened to 7.0% during
the October-December quarter of 2016, dropping 0.4 percentage
points from the previous quarter’s 7.4%. The healthy growth rate
however, came in a quarter that was marked by demonetization of the
Rupee, which squeezed liquidity among households. In February, the
Consumer Price Index (CPI), a key price indicator of the Reserve Bank
of India (RBI) for policy purposes, was seen at 3.6%, treading well
below the government’s target of 4% till 2021. While the RBI has not
cut the repo rate for the past five months, banks have reduced their
term-deposit rates post demonetization as they were flush with funds.
Further, several banks have also reduced their home loan rates by up
to 90 basis points, providing some cheer to homebuyers. Following the
cut in home loan rates, some rationalization in prices of housing units
and the enforcement of the Real Estate (Regulation and Development)
Act (RERA) in May, a pick-up in residential sector is anticipated
towards the latter half of 2017.
Market OverviewLaunch activities continue to be tepid. Pune launched about 4,300
units during the first quarter of 2017, similar to the previous quarter.
Select large projects were launched during the quarter as developers
continue to evaluate their launch strategy on the back of moderate
sales and while waiting further clarity on the rules for the enforcement
of the RERA.
Majority of the unit launches were in the mid-segment, nearly 88% of
which were concentrated in the submarkets of NH4 Bypass (North)
and East. The share of the affordable segment declined to 46% from
57% in the previous quarter. One and two bedroom-hall-kitchen (BHK)
units combined for nearly 83% of the launches during the quarter.
Quoted rental and capital values recorded mixed trends in select
submarkets. Quoted capital values in the submarkets of Koregaon
Park and Nagar road increased 2-3% in the high-end segment. The
submarket of Aundh-Baner recorded a marginal decline due to excess
supply and spillover of demand to the adjacent submarkets of Wakad
and Pashan. Rental values remained steady across submarkets,
except in the North-east and Pimpri submarkets which witnessed a 2%
increase from the previous quarter due to the high demand from
people employed in the Information Technology-Business Process
Management (IT-BPM) sector (in Kharadi and Wagholi) and the
industrial corridor towards Pimpri.
OutlookLaunch activities to remain slow. New launches are expected to be
restricted in the upcoming quarter as developers are likely to focus on
completing existing under-construction projects. Prices are expected to
remain stable, given the high unsold inventory and expected slower
pick-up in demand.
<CITY> OFFICE
RENTAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rent (INR/Mth)% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
Koregaon Park –
Boat Club
100,000-220,000 0% 0%
Aundh-Baner 75,000-130,000 0% 0%
Nagar Road 70,000-140,000 0% 0%
East 55,000-140,000 0% 0%
Mid Segment
Koregaon Park -
Boat Club
30,000-45,000 0% 0%
Aundh-Baner 17,000-32,000 0% 4%
Kothrud 14,000-21,000 0% 0%
Nagar Road 15,000-35,000 0% 0%
North-East 12,000-20,500 2% 2%
East 11,500-20,000 0% 0%
South-East – I 13,000-22,000 0% 0%
South-East II 8,500-13,000 0% 0%
NH4 Bypass
(North)
11,000-18,500 0% 2%
Pimpri 10,500-17,500 2% 6%
<CITY> OFFICECAPITAL VALUES AS OF Q1 2017
High-End Segment
Submarket Average Quoted
Rate (INR/sf)% Change From Short Term
Outlook3 Mth Ago 1 Yr Ago
Koregaon Park -
Boat Club
14,000-19,000 3% 7%
Aundh-Baner 8,500-13,000 0% -3%
Nagar Road 9,500-14,500 2% 6%
East 8,500-13,000 0% 6%
West 13,000-17,500 0% 6%
Mid Segment
Koregaon Park -
Boat Club
8,500-10,500 0% 3%
Aundh-Baner 6,500-8,200 -1% -5%
Kothrud 8,500-11,250 0% 1%
Nagar Road 6,000-7,800 0% -1%
North-East 3,600-6,200 0% 4%
East 4,300-5,800 0% 3%
South-East – I 5,300-7,200 0% 9%
South-East – II 3,750-5,500 0% 1%
NH4 Bypass
(North)
4,200-6,100 0% 2%
Pimpri 4,000-6,000 0% 5%
Increase DecreaseStable
Residential Snapshot Q1 2017Pune
MARKETBEAT
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Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
STATS ON THE GO
Significant Projects Launched in Q1 2017
Building Location Developer Units Launched Rate* (INR/SF)
Atria Grande Handewadi Atria construction 570 3,199
Forest Trail Bhugaon Paranjape Schemes
Construction Limited
300 5,800
Significant Projects Under Construction in Q1 2017
Building Location Developer Est. Number Of Units Expected Completion
Umang Kharadi Kolte-Patil Developers 3,000 Q2 2017
Dream City Phursungi DSK Group 1,090 Q4 2017
Significant Construction Completions in Q1 2017
Building Location Developer Est. Number Of Units Unit Size (SF)
Raheja Vistas Premiere NIBM K Raheja Corp 160 1,335-2,050
Montvert Oystera Wakad Montvert 88 992
NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges,
etc.
The above values for high-end segment are for units typically of 1,600 sf and above
The above values for mid segment are for units typically of 900-1,600 sf
KEY TO SUBMARKETS
High-end Segment
Koregaon Park-Boat Club: Koregaon Park, Bund Garden Road, Boat Club Road, Mangaldas Road
Aundh-Baner: Aundh, Baner
Nagar Road: Kalyani Nagar, Viman Nagar
East: Sopan Baug, Uday Baug, Hadapsar
West: Deccan Gymkhana, Model Colony, Prabhat Road, Erandwane, Bhosale Nagar
Mid Segment
Koregaon Park-Boat Club: Koregaon Park, Bund Garden Road, Boat Club Road, Mangaldas Road
Aundh-Baner: Baner, Baner Road
Kothrud: Kothrud
Nagar Road: Kalyani Nagar, Yerwada, Shashtri Nagar, Viman Nagar, Old Airport Road, Vishrantwadi
North-East: Kharadi, Wagholi, Wadgaon Sheri
East: Hadapsar, Manjri, Mundhwa, Keshavnagar
South-East - I: Wanowrie, NIBM Road, Lulla Nagar
South-East - II: Undri, Kondhwa, Pisoli
NH4 Bypass (North): Balewadi, Mahalunge, Wakad, Hinjewadi, Punawale, Kiwale, Ravet, Tathawade, Bhugaon, Bavdhan, Pashan, Sus