CB Property Insights Q4 2012

PROPERTY INSIGHTS

Subdued Trends, Cautiousness Continues

India Quarter 4, 2012

INDIA MARKET OVERVIEW

The GDP growth in Q2 2012 (July-September 2012)

declined to 5.3% as compared to 6.7% during the same

period last year. This is on account of lower growth in

manufacturing sector, which registered a growth of

only 0.8% in Q2 2012 compared to the 2.9% growth

during Q2 2011. The agricultural sector also registered

a lower performance and grew at 1.2% in Q2 2012 when

compared to a growth rate of 3.1% during same period

last quarter. Construction sector registered a robust

growth of 6.7% indicative of healthy activity in the

infrastructure space. Due to subdued domestic and

global economic environment and policy hurdles, the

GDP is expected to be in the range of 5.5%-6.0% for

fiscal year 2013. In its latest policy review in December

2012, RBI stated that inflation has been below the RBIs

projected levels over the past two months. However,

it still remains above their comfort levels and hence,

key policy rates remained unchanged. On a positive

note, the RBI did indicate that there is a reasonable

likelihood of easing policy rates in Q4 of Financial

Year 2013 (January- March 2013), even as its policy

stance remains sensitive to inflationary risks.

In the wake of prevailing subdued economic

sentiments, the real estate sector witnessed mixed

trends during the fourth quarter of 2012 (October

December). The office sector recorded absorption

of approximately 8.82 million square feet (msf) in

the top eight Indian cities , an increase of nearly 17%

over the previous quarter. However, year on year,

the top eight cities witnessed a 23% decline in office

space absorption in the wake of cautious approach

by companies in the view of slower economic growth.

Most of the companies are putting hold on their

expansion plans thereby committing less office space.

Total office space supply was noted at 7.86 msf, which

is 29% lower than the previous quarter. Annual supply

also declined by 10% year on year. During the fourth

quarter of 2012, none of the eight cities witnessed any

mall supply; though in the full year they did record

a supply of 10 malls admeasuring 3.44 msf. Demand

from retailers is still strong and expected to remain so

in 2013. The passage of the Bill for allowing 51% FDI

in multi-brand retail in the Parliament has boosted the

sentiments in the retail sector and hence, the cities

are likely to witness more retail transaction activities

in 2013. The residential markets remained subdued

as buyers remained cautious and were delaying

their buying decisions in expectation of a decrease

in mortgage rates; however a few micro markets

witnessed price escalations in both mid-end and high-

end segment. Developers continued to face liquidity

issues due to limited access to funding and reduced

/ slow off-takes in some cities and micro markets.

Additionally, a number of project launches have

1

been delayed and are facing cost increases due to

regulatory hurdles pertaining mainly to environmental

clearances at the national and state level. The numbers

of launches declined during the fourth quarter of 2012

by 19% compared to third quarter of 2012.

2

Trends & Updates

Economic Overview

The inflation numbers are showing signs of

moderation with figure coming down from 8% in

August 2012 to 7.45% in October 2012 and further

down to 7.24% in November 2012. The RBI will

evidently be viewing the trends in inflation before

taking a call on interest rates, which are expected

to show signs of reduction by end of January/early

February, albeit very slowly. Growth concerns, on the

other hand, have accentuated and the Government is

paying more attention to finding measures to promote

it. The year 2013 is expected to witness some positive

measures taken by both the Government and the RBI

to boost the economic growth.

The rupee has been falling since April and was stable

in July-August before strengthening in September

and October, as foreign funds flowed in, which was

helped further by the positive sentiment fuelled by

the policy announcements of the government relating

to FDI. However, it has started sliding again in the last

two months of 2012 and it appears that it will maintain

these levels in the short term at least.

As per Department for Industrial Policy & Promotion

(DIPP), FDI inflows in India during the second quarter

of the fiscal year (FY) 2013 (June-September 2012)

were registered at INR 463 billion, 54% lower

compared to the inflows during the same period last

year. This was on account of the global economic

conditions, especially in the EU and the US and further

compounded by domestic economic conditions and

policy hurdles. However, the FDI inflow in construction

development during the second quarter of FY 2013

saw a significant increase of approximately 82% as

compared to the same time period in FY 2012. This

is third consecutive quarter where the inflows have

shown an increasing trend. Approximately INR 16

EXCHANGE RATE MOVEMENT (INR/USD)

Source: RBI

GROSS DOMESTIC PRODUCT GROWTH RATE

Source: Central Statistical Organisation, Govt. of India

FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR

Source: Dept. of Industrial Policy & Promotion, Govt. of India

BSE REALITY INDEX

Source: BSE

3During the last quarter of 2012, Indias residential

market has seen a rise in capital values in few of the

micro markets of Bengaluru, Chennai, Mumbai and

NCR. While there was an average price increase of

7% (quarter-on-quarter) in mid-end properties,

capital values of high-end properties increased by

9% in the same period. NCR saw highest increase

in prices in the mid-end segment at 14% followed

by Bengaluru at 12%. Chennai on the other hand,

witnessed the highest average growth in values of

high-end segment at 10% followed by Mumbai at 9%.

Number of units launched in 4Q 2012, dropped by

19% and approximately 39,700 units were launched

across the top eight major cities during the quarter.

NCR continued to record the highest number of units

launched in 4Q 2012 and accounted for nearly 31%

of the total. Mumbai and Hyderabad also witnessed

healthy launches and contributed 19% and 13%

respectively to total number of units launched. These

cities witnessed the higher number of launches owing

to uncertainties over regulations (Development

Control Rules in Mumbai, G.O. 245 in Hyderabad and

issues pertaining to land acquisition in NCR) being

resolved and the advent of festive season.

The early signs of moderation of inflation coupled

with expected reduction in the interest rates and

improvement in the economic conditions is likely to

revive the demand in residential markets. Capital

values are likely to remain largely stable in the short

term. Launches are also expected to remain stable

in the wake of slow off-take of unsold stock in most

of the cities and cautious approach adopted by the

developers who are awaiting new policy proposals by

the Government.

Residential Trends

billion of FDI inflow was recorded in this sector during

the second quarter of FY 13.

The BSE Realty Index had showed an upward

trend in December 2012 as compared to September

2012 and registered a 14.3% q-o-q increase. The index

is expected to maintain this trend for at least the

first 2 months of 2013 until the presentation of the

Union Budget in March, which would then dictate the

direction thereon.

Source: Cushman & Wakefield Research

RESIDENTIAL CAPTIAL VALUES GROWTH INDEX

Source: Cushman & Wakefield Research

NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 4Q 2012

4Ahmedabad ......................................................................................5

Bengaluru .........................................................................................8

Chandigarh ....................................................................................... 12

Chennai ............................................................................................. 16

Hyderabad ........................................................................................20

Kolkata ..............................................................................................24

Mumbai ............................................................................................28

National Capital Region .................................................................33

Pune ..................................................................................................38

Index

5The residential sector in Ahmedabad witnessed

increased transaction activity during the festive

season. The total number of units launched increased

significantly compared to previous quarter. However, a

number of projects still have large unsold inventories.

Peripheral locations along the ring road and Sarkhej-

Ghandinagar highway witnessed large construction

activity mainly catering to the mid-end segment.

Investor activity in Ahmedabads residential market

has remained subdued over the past few quarters.

Ahmedabad witnessed office absorption of

355,000 sf, which is an increase of 12% over the

previous quarter. Absorption during the quarter

was concentrated in S.G. Highway contributing 98%

to total leasing activity. Approximately 598,000 sf

of Grade A supply was delivered during the fourth

quarter all of which was concentrated at S.G. Highway.

This is a clear indicator of the high level of commercial

activity at suburban locations in Ahmedabad. Rental

values for Grade A developments witnessed an

appreciation in the range of 3% -8% at S.G. Highway

and Prahladnagar.

With the large amount of vacant space in malls

across Ahmedabad no fresh supply is expected in

the coming future. Moderate leasing activity in major

malls excluding Alpha One has lead to stable rentals

for the quarter. Main street locations continue to

witness high level of enquiries from retailers.

AhmedabadMarket Overview

Trends & Updates

Ready Residential Property UpdatePrices for ready residential properties remained

stable across all micro-markets in the high-end and

mid-end segments for Ahmedabad. This is primarily

due to the high unsold inventories and low transaction

activity in the market.

Source: Cushman and Wakefield Research Note: The above values for high segment typically include units of 2,000-4,000 sf

Average Capital values High end (INR 000/sf)

Location 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

Satellite 4.0-4.8 4.3-6.0 4.3-6.0 4.3-6.0 4.3-6.0 4.3-6.0

Vastrapur 3.7-4.0 3.7-5.0 3.7-5.0 3.7-5.0 3.7-5.0 3.7-5.0

S.G.Highway 3.7-4.3 3.7-4.5 3.7-4.5 3.7-4.5 3.7-4.5 3.7-4.5

Prahlad Nagar 4.2-5.3 4.2-6.0 4.2-6.0 4.2-6.0 4.2-6.0 4.2-6.0

Ready Residential Property Values in Dec12

6New Residential Launches

New project launches in Ahmedabad during

the fourth quarter of 2012 were concentrated at

peripheral locations such as Vadsar and Kadi. Projects

launched during the quarter catered primarily to the

affordable segment and have witnessed high demand

from both end-users and investors. However, overall

end user activity in the city remained low resulting in

a substantial drop of new launches over the last two

quarters of 2012 when compared to previous year.

Source: Cushman and Wakefield Research Note: The above values for mid segment typically include units of 1,200-1,800 sf

Average Capital values Mid Segment (INR 000/sf)

Location Q4 2010 Q4 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

Satellite 2.8-3.8 2.8-4.3 2.8-4.3 2.8-4.3 2.8-4.3 2.8-4.3

Vastrapur 2.6-3.5 2.6-3.8 2.6-3.8 2.6-3.8 2.6-3.8 2.6-3.8

S.G.Highway 3.0-3.8 3.3-4.3 3.3-4.3 3.3-4.3 3.3-4.3 3.3-4.3

Prahlad Nagar 2.8-3.6 3.2-4.2 3.2-4.2 3.2-4.2 3.2-4.2 3.2-4.2

Under construction Residential Property Update

Commercial Office Sector

Most under construction activity is concentrated

in peripheral locations like S.G. Highway, Ring Road,

Bopal, Motera and Kalol. Large-scale construction

activities in the form of township projects are currently

ongoing, viz. Godrej Garden City, Shantigram, Sahara

City Homes and Applewoods. Out of the total units

expected to be completed in 2013 location along

the S.G. Highway and Ring road are expected to see

majority of the completions. With the large supply

along with the high unsold inventory stable capital

values is expected in the short term.

Office space absorption for the third quarter stood

at 355,000 sf. New commercial establishments in

Ahmedabad have shifted base to suburban locations

like S.G. Highway and Prahladnagar where the bulk of

the new construction activity is concentrated. Despite

higher rentals, occupiers prefer these locations

primarily due to the availability of quality options in

terms of large floor plates, efficient designs, build

quality, etc and access to better infrastructure. With

low transaction activity, rentals have remained stable

at Ashram Road, while on C.G. Road they witnessed a

3% appreciation due to low availabilities.

* Estimated and as per market information # Not disclosed

Project Name Developer Location Number of Units* Type Area of Units -in sf

Palm Land Ajmera Ajmera Realty Kadi Village 434 Villa ND#

Shuh Gruh Phase 2 Tata Housing Vadsar-Kalol Road 1,050 Apartments Studio: 2931BHK: 3841.5BHK: 457

7Capital values are expected to remain stable in

the near future since any increase in prices would

have a negative impact on demand for residential

units. Most new launches in the city are expected in

peripheral locations like Vadsar and Kadi catering to

the affordable and mid-end segment.

Ahmedabad is expected to witness new supply

of 766,000 sf in the first quarter of 2013. The large

upcoming supply along with the vacant space is

expected to exert a downward pressure on rentals.

Limited availabilities at Ashram road and C.G. Road

could lead to increase in commercial rentals at these

locations.

Limited new supply and availabilities in prime

main street locations could lead to rental growth

especially at C.G. Road and Satellite Road over the

next two quarters. Mall rentals in all micro-markets,

except Vastrapur which has low vacancy levels,

could witnesses a marginal decline due to the large

availability of vacant spaces.

Outlook

Retail Sector

The main street location of Satellite Road

witnessed an appreciation of over 7% in the quarter

due to healthy demand. Rental values at C.G. Road,

Law Garden and S.G. Highway continued to remain

stable due to limited transaction activity or churn at

the location. Low vacancies at Alpha One mall resulted

in rentals increasing by 20% during the fourth

quarter. Mall rentals in the other micro markets of S.G.

Highway, Drive-in road and Kankaria Lake remained

stable during the quarter due to high vacancy levels.

8BengaluruMarket Overview

Bengalurus residential realty market witnessed

a subdued demand trend for high-end properties

across most micro markets. In the high-end segment,

Northern locations such as Hebbal emerged as the

sole exception on account of persistent demand,

primarily from investors. In the backdrop of improving

market sentiments and festive season setting in, the

fourth quarter witnessed nearly 20% increase in

residential launches quarter on quarter. During the

quarter approximately 85% the total project launches

catered to mid-end segment and were predominantly

launched in the peripheral locations of South and

North Bengaluru.

The commercial realty market of the city saw a

supply of nearly 1.6 msf of Grade A office space in the

final quarter of 2012, despite almost 1.4 msf getting

deferred to 2013. There was an addition of around

580,000 sf of SEZ spaces, all of which was on Outer

Ring Road. Given the benefits of good connectivity

and growing residential catchments, majority of the

supply was concentrated in peripheral locations of

Outer Ring Road.

The retail realty market of the city saw no fresh

supply of mall space in the last quarter of 2012.

However, there was some churn in established malls

of the city, which created opportunities for retailers

trying to relocate or expand in these prominent malls.

On the other hand, brands favoring main streets

continued to scout for quality space options. The

overall mall vacancy level for the city experienced a

slight dip due to tight demand and supply scenario.

Trends & Updates

Ready Residential Property Update

High-end units in micro markets in Central

Bengaluru and both mid and high-end units in

Off-Central Bengaluru witnessed capital value

appreciation in range of 7%-9%, primarily due to

the lack of availability of residential units. Similarly,

non availability of land parcels for development in

South led to capital value rise of almost 25% in

the mid-end segment properties. Mid-end units in

the micro market of North-West recorded capital

value appreciation of nearly 5% on account of

lower availability further aided by the progress

in the NAMMA metro construction work. Given

balanced supply-demand dynamics, the rental

values remained stable across micro markets.


9High-end Segment

Central: Lavelle Road, Off Palace Road, Off Cunnigham

Road, Ulsoor Road, Richmond Road

South: Koramangala, Outer Ring Road, Bannerghatta

Road, JP Nagar

Off Central: Frazer Town, Benson Town, Richards

Town, Dollars Colony

East: Whitefield (villas)

North: Hebbal, Yelahanka, Jakkur, Devanahalli

Mid-end Segment

Central: Brunton Road, Artillery Road, Ali Askar Road,

Cunningham Road

East: Marathalli, Whitefield, Old Airport Road

South-East: Sarjapur Road, Outer Ring Road, HSR

Layout

South: Koramangala, Jakkasandra

South-West: Jayanagar, J P Nagar, Kanakpura Road,

Bannerghatta Road, BTM Layout

North: Hebbal, Bellary Road, Yelahanka, Dodballapur

Road, Jalahalli

Off Central*: Vasanth Nagar, Richmond Town,

Indiranagar

Off Central**: Cox Town, Frazer Town, HRBR, Benson

Town, etc

North-West: Malleshwaram, Rajajinagar

Key to Locations:

Average Capital values Mid Segment (INR000/sf)

Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

Central 5.8-7.0 5.0-6.0 5.5-7.0 6.0-7.5 6.0-8.0 6.0-8.0 6.0-8.0 6.0-8.0

East 2.7-3.1 2.4-2.7 2.7-3.1 3.2-3.8 3.8-4.8 3.8-4.8 3.8-4.8 3.8-4.8

South East 2.9-4.0 2.5-3.2 2.8-4.0 3.4-5.0 4.0-5.5 4.0-5.5 4.0-5.5 4.0-5.5

South 5.0-6.5 4.6-5.7 4.8-6.0 5.0-6.5 5.0-7.0 5.0-7.0 5.0-7.0 6.0-9.0

North 3.0-4.0 2.8-4.0 2.8-4.4 3.0-4.8 3.0-5.0 3.5-5.5 3.5-5.5 3.5-5.5

South West 2.8-4.2 2.7-3.9 3.2-4.5 3.6-5.0 3.6-5.0 4.0-5.5 4.0-5.5 4.0-5.5

Off Central* 3.5-6.0 3.7-5.7 4.0-6.2 4.5-6.7 4.5-7.0 4.5-7.0 4.5-7.0 5.0-7.5

Off Central** 4.0-6.0 3.3-5.7 3.8-6.2 4.3-6.7 4.0-6.5 4.5-6.5 4.5-6.5 5.0-7.0

North West 4.2-5.8 3.5-5.2 3.8-5.6 4.3-6.2 4.3-6.2 4.3-6.2 4.3-6.2 4.5-6.5

Source: Cushman and Wakefield Research Note: The above values for mid segment typically include units of 1,200-1,400 sf

Average Capital values High end (INR000/sf)

Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

Central 14.0-18.0 12.0-14.5 13.5-17.5 14.0-18.0 16.0-21.0 18.0-23.0 18.0-25.0 18.0-28.0

South 7.0-9.0 6.0-8.5 6.0-9.5 6.5-10.0 6.5-10.0 6.5-10.0 6.5-10.0 6.5-10.0

Off Central 6.5-7.5 5.0-6.6 5.0-7.0 6.0-8.5 6.0-8.5 6.0-8.5 6.0-8.5 7.0-9.0

East 6.5-9.0 5.6-7.0 6.5-7.5 6.8-8.0 6.0-8.5 6.8-9.0 6.8-9.0 6.5-9.0

North 6.0-8.0 5.5-7.0 5.5-7.0 6.5-8.0 6.0-8.0 6.5-8.0 6.5-8.2 6.5-8.2

Source: Cushman and Wakefield Research Note: The above values for high segment typically include units of 1,650 - 3,000 sf

10

Project Name Developer Location Number of Units* Type Area of Units - in sf

Embassy Lake Terraces Embassy Developers Hebbal 470 Apartments 3BHK: 3,500 to 6,000 4BHK: 4,400 to 4,6005BHK: 7,700 to 9,900

Godrej E.City Godrej Properties Electronic City 600 Apartments 2BHK: 964 to 1,1712.5BHK: 1,1423BHK: 1,449 to 1,625

Nikoo Homes Bhartiya Developers Thanisandra 2415 Apartments 1BHK: 760 to 9332BHK: 1,056 to 1,2763BHK: 1,595 to 1917

DLF Woodland Heights DLF Rajapura 1080 Apartments 2BHK: 908 to 1,213 3BHK: 1,221

Purva Whitehall Purvankara Developers

Sarjapur Main Road 192 Apartments 3BHK: 1,925 to 2,023 4BHK: 2,322 to 2,425

* Estimated and as per market information

During 2013, several under construction projects

in micro markets like Outer Ring Road and Sarjapur

Road are expected to be completed. Micro markets in

North also witnessed significant level of construction

activity backed by strong growth potential of this

location. Developing infrastructure, present and

upcoming commercial office space, proximity to

airport and availability of land parcels has fuelled the

development of residential catchments in this location.

Meanwhile, under construction properties in South-

East micro markets saw capital value appreciation in

range of 6%-9% given their proximity to IT hubs.

Under Construction Residential Property Update

The leasing activity in the last quarter of 2012

remained upbeat and resulted in higher absorption

levels. Total of 3.6 msf of leasing activity took place

out of which 3.4 msf was the net absorption during

this quarter. Transaction activity continued to be

dominated by the IT/ITeS sector amounting to over

60% of the net take up, followed by BFSI sector

accounting for nearly 9% of it. Around 45% of the

net absorption was accounted for in SEZ properties.

The overall rental rates exhibited a stable trend

with fluctuation in weighted average rentals for

select locations. For instance, micro markets like

CBD/Off-CBD witnessed increase in vacancy levels

of second generation spaces due to preference for

quality spaces despite the comparatively higher

rentals. This resulted in drop in rentals for CBD/

Off-CBD. On the other hand, in other micro markets,

occupiers preferred spaces with lower rent, which

in turn resulted in higher rents. Pre-commitment of

around 670,000 sf of office space took place this

quarter; majorly by IT sector companies in peripheral

locations of Outer Ring Road and North Bengaluru.


The new residential launches remained upbeat

during the last quarter of 2012 aided by the prolonged

festive season. The city witnessed new launches

in both mid and high-end categories. The launches

were primarily concentrated in peripheral locations

like Electronic City in South, Sarjapur Road in South-

East and Hebbal, Thanisandra in North. The proximity

to IT hubs has been instrumental in growth of the

residential catchment in and around peripheral

locations of South and South-East Bengaluru. On

the other end of the city, improving infrastructure,

proximity to Bengaluru International Airport and high

growth prospects of North Bengaluru has made the

micro markets in this location equally attractive for

both investors and developers.

New Residential Launches

11

The rental values for residential market are

anticipated to follow stable trend for most micro

markets during the next quarter as well. Micro

markets like South-East, North and East are expected

to witness demand for mid-end projects in wake of

healthy commercial activities. Due to the anticipated

demand, the capital values in these locations are

expected to witness an uptrend.

The office realty market of Bengaluru is

anticipated to see some momentum in transactions

on account of increased enquiry levels witnessed in

the last quarter of 2012. The vacancy levels for Grade

A properties will remain under pressure, which can

result in rentals moving north in locations like Outer

Ring Road and Whitefield.

Retail real estate market of the city is anticipated

to witness increased leasing activities aided by the

expansion plans of different brands. With expected

rise in volume, the main streets and malls will continue

to sustain the rental values. The city is anticipated

to record supply of 400,000 sf of new mall space

in Bannerghatta Road micro market during the first

quarter of 2013.

Outlook

The retail space rentals exhibited a stable trend

across most micro markets in both malls and main

streets. There was a minor appreciation in rental

values of main streets like Brigade Road, Commercial

Street and Jayanagar 4th Block, 11th Main in the range

of 1.5%-3.3%. On the other hand Vittal Mallaya Road

main street recorded a slight dip in rental values on

account of prevailing high rental values and some

retail spaces lying vacant. The main street of Vittal

Mallaya Road registered a remarkable hike of almost

58% in the rental values over the 2011 and hence, in

the final quarter of the year there was marginal price

correction.

Retail Sector

12

The residential sector in the upcoming peripheral

locations of the city has gained momentum in 2012

due to increase in demand from both end-users

and investors as most of the existing and upcoming

projects are in the affordable to mid-end segment.

A healthy absorption rate in group housing projects

indicates that the demand is now shifting towards

group housing, with a number of projects coming up

in this segment. The upcoming supply of residential

apartments in the city is mainly concentrated in the

areas like Zirakpur, Mohali and Dera Bassi catering to

the mid-end segment.

The commercial central business district of the city

is considered to be sectors 9 and 17 and it comprises

of Grade B developments. With limited scope of

development in main Chandigarh city and initiatives

provided by the Government to the IT/ITeS sector,

quality Grade A supply is concentrated in locations

such as Industrial Area Phase I, Manimajra, Panchkula

and Mohali. Demand for office spaces in the Tri-city

is dominated by IT/ITeS, telecom and manufacturing

companies who have consolidated and/or expanded

business operations due to cost arbitrage.

The main streets in the Tri-city are in the form

of sector markets which were established by the

government authorities. The established retail

precincts in Chandigarh include sectors 8, 9, 17,

20, etc. witnessing demand from both prominent

domestic and international brands. Sectors 9 and 17

have development in the form of Shop-Cum-Office

complexes with retail space on the ground floors and

small office spaces on upper floors. The prominent

real estate developers have their completed mall

projects in the city. Retail rental values across most

locations in Tri-city remained stable over the last six

months.

ChandigarhMarket Overview

Trends & Updates

Ready Residential Property UpdateThe main Chandigarh city and sectors 2,4,8,9 etc

of Panchkula offer ready residential properties in the

form of independent houses catering to high-end

segment. The locations like Zirakpur, Kharar, Mullanpur

and sectors 99,114,115,127 etc. in Mohali offer a mix of

both independent houses and apartments catering to

affordable and mid-end segment.

The capital values in main Chandigarh city have

stabilized over last two quarters with majority

of demand driven by end-users and speculative

investment activity is limited. On the other hand,

emerging peripheral locations namely Zirakpur,

Mohali, Panchkula and Dera Bassi have witnessed a

marginal appreciation of up to 7% during the same

period due to the demand being driven by a mix of

investors and end-users.


13

Average Capital Values High-end

Location 3Q 2012 4Q 2012

Chandigarh Sector: 2-11 160,000-180,000/sq yards 160,000-180,000/sq yards

Chandigarh Sector: 28 140,000-170,000/sq yards 140,000-170,000/sq yards

Panchkula 110,000-145,000 /sq yards 110,000-145,000 /sq yards

Manimajra* 13,000 /sf 13,000 /sf

Source: Cushman and Wakefield ResearchFor plotted developments in the range of 250 sq yards 1,000 sq yards*The above values for high-end segment apartments include units of 2,000-4,000 sf and villas include plot size of 125-1,000 sq yrds

Average Capital Values Mid range (INR 000/sf )

Location 3Q 2012 4Q 2012

Zirakpur 2.5-3.6 2.5-3.6

Mohali 3.0-4.0 3.0-4.0

Dera Bassi 3.0-3.2 3.0-3.2

Panchkula 2.7-3.3 2.7-3.3

Source: Cushman and Wakefield ResearchNote: The above values for mid-segment apartments typically include units of 1,600-2,000 sf

Several projects launched in 2012 were mainly in

the mid-end segment category. The new launches

constituted a mix of apartments and plotted

developments and were concentrated in micro

markets of Mohali and Mullanpur.


High-end Segment

Panchkula: Sectors 2,4,6,7,8,9,15

Mid-end Segment

Mohali: Sectors-114,115,127

Panchkula: Sector-20

Key to Locations:

Project Name Developer Location Number of Units* Type Area of Units

DLF Hyde Park Terraces DLF Mullanpur 300 Apartment 3BHK: 1,880 sf

DLF Hyde Park Estates DLF Mullanpur 100 Plots 250, 350 & 500 sq yrd

Tulip Tower & Carnation Tower

Ansals API Mohali 180 Apartment 3 BHK: 1,698 to 1,806 sf

Wave Estate- The Villas Wave Infratech Mohali 746 Villas 360, 550 & 1,000 sq yrd

Falcon View Janta Land Promoters Ltd

Mohali 540 Apartment 3BHK: 2,480 sf

Ralio Heights Star Realtech & Developers Ltd

Kharar 264 Apartment 2BHK- 1,250 sf3BHK- 1,650 to 2,150 sf

Note: The new launches data in table is of last six months* Estimated and as per market information

14

A number of new residential developments are

under construction in Zirakpur and towards Nada

Sahib, where Haryana Urban Development Authority

is coming up with new sectors for group housing.

Additionally, residential projects and townships by

local developers in locations such as Dera Bassi,

Kharar and Mullanpur are also coming up. The under

construction projects are likely to be completed during

2014 - 2015 with most of these projects belonging to

the mid-end segment.


The major demand drivers for commercial office

space are IT/ITeS companies. The demand remained

healthy for IT/ITeS developments in locations like

Manimajra while Mohali witnessed reduced demand

due to lack of infrastructure facilities. The rental

values of IT office developments is in the range of INR

20-75/sf/month while rental values for non-IT office

buildings, which mainly include sectors 7,8,9 and 17

are in the range of INR 100-120/sf/month.

The Rajiv Gandhi Chandigarh Technology Park

(RGCTP) Phase I is occupied by major IT/ITeS companies

such as Infosys, IBM Daksh, Tech Mahindra etc. In

addition to RGCTP, DLF Infocity is also an important

IT/ITeS development which houses companies like

eSys Info Services Ltd., Ericsson, and Agilent. The

other grade A office developments like Industrial

Area Phase 7, 8 and 8 B has witnessed prominent

electronics and telecom companies like Quark, Dell,

Bharti, Texas Instrument, Fujitsu etc. taking up space

while Industrial Area Phase 1 in outskirts of Chandigarh

has witnessed leading manufacturing companies like

Larsen & Tubro, Maruti Suzuki, Volvo, Jaguar taking

up space.

The sector-17 forms the centre of the city with

rental value as high as INR 1,000/sf/month. The

main street is dominated by a number of prominent

apparel & footwear category brands and premium

international brands which have established their

presence. In addition, sectors 8,9,26,34 and 35 are

also established main streets with rental values in the

range of INR 125-150/sf/month.

Mall developments admeasuring 1.64 msf are

present in peripheral location such as Zirakpur, Mohali

and Panchkula. Due to limited availability of quality

space on main streets, premium international brands

have established their presence in malls. The rental

values in malls are in the range of INR 100 to 180/sf/

month.


Retail Sector

15

The micro markets of Zirakpur, Mohali and

Mullanpur are expected to witness an increase in

demand from both investors and end-users due to their

location advantage which provides an easy access for

these locations to neighbouring cities and upcoming

IT/ITeS developments and up gradation of existing

infrastructure facilities. The approval of a metro rail

project by Government of Punjab with its first phase

extending from Capitol Complex Chandigarh to Sector

70 Mohali is expected to get operational by 2018. This

is expected to result in marginal appreciation of capital

values in select sectors of Mohali and Chandigarh.

The Industrial Area Phase 1 is expected to witness

increase in leasing activity as the location provides

quality Grade A commercial buildings, thus giving an

option to companies for further expansion in the city.

The rental values for commercial offices are likely to

strengthen in locations like Manimajra and Industrial

Area Phase 1 due to the increased demand while

Mohali is expected to witness a downward pressure.

The retail sector in the city is expected to witness an

upswing in supply with 2.06 million square feet of mall

space expected in 2013 in locations namely Mohali and

Industrial Area Phase-1.

With an increase in demand and limited availability

of quality space required by prominent luxury and

premium brands, the rental values are expected to

increase. Similarly rents in main streets like Sectors

17 and 8 are also expected to appreciate due to

consistent demand and limited availability. The factors

that are expected to act as a catalyst for growth of

retail sector include rapid economic growth from IT/

ITeS sector, increasing income levels leading to higher

disposable income and the cosmopolitan nature of Tri-

city due to non-IT and IT/ITeS office developments.

Outlook

16

Chennai residential market witnessed mixed

trends in the fourth quarter of 2012. While the number

of residential launches declined by 34% over the

last quarter, the capital values increased in most of

the locations across the city. Approximately 3,730

housing units were launched in this quarter, majority

(60%) of them catering to the affordable group. The

capital values increased in both mid as well as high-

end segment groups due to the strong demand. In mid-

end residential segment, locations like Rajiv Gandhi

Salai, T. Nagar and Kilpauk witnessed a marginal

appreciation of approximately 3%-5% quarter-on-

quarter in capital values. The capital values of high-

end residential segment in locations like Anna Nagar,

Nungambakkam and Boat Club witnessed a quarter-

on-quarter appreciation in the range of 4%-18%.

The commercial office market of Chennai witnessed

a total supply of approximately 2.5 million square

feet (msf) in the fourth quarter of 2012, majority of

which was Grade A IT office space. The net absorption

declined in this quarter by 81% over the last quarter

due to conservative market sentiments and was

recorded at approximately 250,000 sf.

The retail market witnessed no fresh mall supply

in the fourth quarter of 2012 as there was a delay in

upcoming malls in Velachery and Koyambedu, having

a total built-up area of over 1 msf. The rental values

remained stable in most of the main streets, except

for locations such as Purusavakam and Velachery

where there was a price appreciation of 10% and 8%

respectively over the last quarter due to shortage of

quality retail spaces.

ChennaiMarket Overview

Trends & Updates

Ready Residential Property UpdateThere was healthy demand for ready residential

properties in this quarter. The capital values of high-

end residential properties increased across most of

the markets. Locations such as Boat Club, Anna Nagar,

Nungambakkam witnessed a price appreciation of

10%-20% over the last quarter. The mid-end ready

residential properties witnessed stable capital values

in locations like Adyar, GST, Velachery, Mogappair,

whereas it showed an increase in the range of 3%-

5% in the upper price band in the remaining micro

markets. Two significant projects in Velachery and

Navalur were completed in this quarter.


17


Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

Boat Club 18.0-24.0 18.0-20.0 18.0-23.0 20.0-25.0 20.0-25.0 20.0-25.0 20.0-25.0 23.0-27.0

R.A Puram* 13.0-15.0 13.0-15.0 13.0-16.5 14.0-17.0 14.0-18.0 14.0-18.0 14.0-18.0 15.0-19.0

Besant Nagar NA NA NA 12.5-13.5 12.5-13.5 12.5-13.5 12.5-14.0 13.0-14.5

Kotturpuram NA NA NA 12.0-14.0 12.0-14.0 12.0-14.0 13.0-15.0 14.0-16.0

Adyar 5.5-10.0 5.5-9.5 8.0-12.0 11.5-13.5 12.5-14.0 12.5-14.0 13.0-14.5 13.0-14.5

Poes Garden** 14.5-20.0 14.5-18.0 14.5-20.0 17.5-24.5 18.5-25.0 18.5-25.0 18.5-25.0 18.5-25.0

Nungambakkam 13.0-16.0 13.0-16.0 13.0-16.5 13.0-17.0 14.0-18.0 14.0-18.0 14.0-18.0 17.0-20.0

Anna Nagar 6.0-9.0 6.0-9.0 7.5-10.5 8.0-11.5 9.0-12.0 9.0-12.0 9.0-13.0 12.0-14.0

Kilpauk 4.0-8.0 4.0-8.0 8.0-12.0 9.0-15.0 9.0-15.0 9.0-15.0 9.0-15.0 12.0-15.0

Source: Cushman & Wakefield Research Note: The above values for high segment typically include units of 1,800-4,000 sf *RA Puram also includes Alwarpet and Abhiramapuram**Poes Garden also includes Venus Colony and Kasturi Rangan Road


Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

Adyar 4.5-6.5 4.5-6.5 6.0-8.5 8.0-11.0 8.5-12.0 8.5-12.0 9.0-13.0 9.0-13.0

Rajiv Gandhi Salai (Perungudi)

2.5-3.6 2.5-2.8 3.5-4.5 4.0-5.5 4.5-6.0 4.5-6.0 5.0-6.0 5.0-6.3

Velachery 3.8-4.2 3.5-4.0 3.5-5.0 3.5-5.5 4.0-6.0 4.0-6.0 4.0-6.5 4.5-6.5

T Nagar 4.0-6.5 4.0-6.5 7.5-10.5 8.5-11.5 8.5-13.0 8.5-13.0 8.5-13.0 8.5-14.0

Mylapore NA NA NA 8.0-12.5 9.0-14.0 9.0-14.0 10.0-15.0 10.0-15.0

Mogappair NA NA NA 5.0-5.5 5.0-6.5 5.0-6.5 5.0-6.5 5.0-6.5

Kilpauk 4.5-6.0 4.5-6.0 6.0-8.0 7.5-9.5 8.0-10.0 8.0-10.0 9.0-11.0 9.0-12.0

Source: Cushman & Wakefield Research Note: The above values for mid segment typically include units of 1,000-2,000 sfThe time series have been adjusted to reflect the updated values

During the fourth quarter of 2012, approximately

3,730 housing units were launched in locations

such as OMR, Kattupakam, Manapakkam, Porur,

Palavakkam, Thiruvallur. The number of residential

launches in this quarter declined by 34% over the

last quarter. OMR witnessed the maximum number

of residential launches, recording 68% of the total

launches in this quarter. Approximately 60% of

launches during this quarter catered to the affordable

segment group, followed by mid-end segment group

with approximately 24% and the rest falling in the

high-end segment.


18



Innova P dot G Kattupakam 236 Apartments 1BHK : 593 to 834 2BHK : 913 to 1,342 3BHK : 1,476 to 1,935 4BHK : 2,032 to 2,439

Amora ICIPL Manapakkam 114 Apartments 2BHK : 964 to 1,0923BHK : 1,282 to 1,398

Sukriti Jain Housing & Con-struction Ltd

Mogappair 184 Apartments 1BHK : 506 to 850 2BHK : 900 to 1200 3BHK : 1,250 to 1,572

Central Park Heights Lancor Holdings Ltd Sholinganallur 51 Apartments 3BHK : 1,343 to 1,828

Melody Bajaj Properties Porur 48 Apartments 3BHK : 1,400 to 2,000 4BHK : 2,000 to 2,700

Le Nid Antony Projects Pvt Ltd

Urapakkam 18 Apartments 1BHK : 389 to 750 2BHK : 800 to 950 3BHK : 1,000 to 1,200 4BHK: 1,250 to 1,562

Mythreya Manju Foundations Thiruvallur 70 Villas 2BHK: 1,013 3BHK: 1,310 to 1,904 4BHK: 2,030

The Grange Landmark Construc-tion

Palavakkam 28 Villas 4BHK: 4,776 to 4,917

Sky Dugar Dugar Homes Ayanambakkam 243 Apartments 1BHK: 535 to 600 2BHK: 1,200 to 1,350 3BHK: 1,500 to1,800

Abov Akshaya Ltd Kazhipattur 31 Apartments 4BHK: 6,700

Aurum Villas Pacifica Companies OMR 406 Villas 3BHK: 1,200 to 2,099 4BHK: 2,100 to 3,240

Today Akshaya Ltd OMR 2,134 Apartments 2BHK: 612 3BHK: 1,246

Prices for under construction residential properties

increased in most of the locations in the fourth quarter

of 2012 on account of high demand. Several locations

along OMR such as Padur, Egattur, Navalur, Perungudi

witnessed a price appreciation of 5%-15% over the

last quarter due to the high demand, whilst there was

an appreciation of 3%-8% in locations like Velachery,

Besant Nagar, Porur, Kalpakkam. Many under

construction projects, especially in the peripheral

locations are witnessing delays in completion due to

difficulty in obtaining the required approvals.


In the commercial office market, micromarkets

such as Suburban-Perungudi Taramani, Suburban-

Guindy and Peripheral-Rajiv Gandhi Salai witnessed a

decrease in vacancy levels due to high leasing activity

and limited new supply. IT/ITeS sector continued to be

the key demand driver accounting for approximately

56% of net absorption followed by manufacturing

sector (24%). The overall Grade A rental values

remained stable in this quarter. However, due to higher

availability of second generation Grade A space, the

weighted average net rental values in micro markets

like Suburban-Guindy and Off CBD experienced

downward pressure.


19

The residential market may witness an increase

in overall demand in the coming months due to

the overall improving economic conditions and

upcoming infrastructural projects. The rentals

are expected to remain stable across most of

the locations. However, certain locations such as

Velachary and Kilpauk may witness an appreciation

in rentals due to the higher anticipated demand

on account of upcoming infrastructural projects.

The capital values for high-end locations like Boat

Club, R.A.Puram, Besant Nagar, Kotturpuram ,

Nungambakkam and Anna Nagar are expected to

rise on account of persistent demand and limited

supply.

In the commercial office market, Grade A

supply of approximately 1.5 msf is expected in the

next quarter in micro markets like Off-CBD and

Suburban-Perungudi Taramani. The rentals are

expected to remain stable in the short term across

most of the micro markets except for Suburban-

Guindy and Suburban-Perungudi Taramani

where rentals are expected to witness an upward

movement due to the healthy demand from IT/ITeS

and Manufacturing sectors.

The city is expected to witness fresh mall supply

of over 1.5 msf in the next quarter with majority of

it being concentrated in Velachery micro market.

Rentals are expected to be stable in most of the

main streets as well as malls. The vacancy levels

in malls are anticipated to remain low despite the

new mall supply in the next quarter due to the low

mall penetration in the city.

Outlook

In the retail market, the rentals increased by 8%

in Velachery over the last quarter due to the high

retail activity. Purusavakam being traditional retail

stretch retained its prominence due to high demand

and competitive rentals. The overall mall vacancy

remained stable due to the low transaction activity

and low availability of quality retail space in malls.

Retail Sector

20

HyderabadMarket Overview

The revision of land reservation clause

continued to positively impact the Hyderabad

residential market as it witnessed a spurt in the

residential launches in the fourth quarter of

2012. Approximately 5,200 units were launched

in key residential locations such as Gachibowli,

Madhapur, Kukatpally and Nallagandla in this

quarter of which 70% catered to the mid-end

segment. There was a surge in enquiries from

end-users as well as investors due to the festive

season and a large number of new project

launches. Capital values in the mid-end segment

witnessed a marginal appreciation of 1%-2% over

the last quarter in areas like Kukatpally, Miyapur,

Nizampet, Begumpet, Somajiguda. Capital values

in high-end segment have remained stable across

almost all locations except in Madhapur and

Gachibowli micro markets where there was a rise

due to their proximity to major commercial office

locations.

The office leasing activity in Hyderabad picked

up in the fourth quarter of 2012 with net absorption

being recorded at slightly below 1 million square

feet (msf), indicating an increase of about 89%

over the last quarter. However, the city witnessed

a meagre supply of approximately 252,000 sf due

to delays in several under construction projects.

There was no Grade A supply in the city for a

second consecutive quarter.

In the retail sector, enquiries for spaces

continued from domestic as well as international

retailers for their future expansion plans.

However, rentals remained stable in all main

streets as well as malls due to moderate demand

and no lease renewals. The upcoming locations

such as Habsiguda, the stretch from Chandanagar

to Madinaguda, L.B. Nagar and Dilsukhnagar

continued to gain prominence due to reasons such

as flexible leasing terms, favourable rentals and

proximity of good catchment areas.

Trends & Updates


Due to the festive season, the fourth quarter of

2012 witnessed a surge in sales of the ready residential

property. Locations such as Kukatpally, Miyapur,

Nizampet witnessed a marginal appreciation of 1%-

2% over the last quarter in the mid-end segment

due to higher demand arising from the proximity of

these areas to the IT & financial districts of the city.

The capital values in high-end segment have remained

stable across almost all locations. Ready properties

witnessed many transactions in the mid-end segment

group in key residential locations such as Kukatpally,

Madhapur, Gachibowli, Miyapur, Nizampet. Few

significant projects in Kukatpally were completed

during this quarter. The rental values have remained

stable across almost all locations.


21

The fourth quarter of 2012 witnessed a huge increase

in number of residential launches. Nine projects with

approximately 5,200 units were launched in this quarter.

Approximately 36% of the launches were in Gachibowli

followed by Nallagandla (17%) and Kukatpally (13%). The

number of residential units launched in this quarter was

nearly four times of the third quarter. Approximately 70%

of the units launched catered to the mid-end segment.

The capital values of these projects are expected to

marginally appreciate over the next few months with

increasing demand. There are approximately 1,100 units

in the pre-launch stage in locations such as Tellapur,

Nallagandla, Sananth Nagar.



Location 2008 2009 2010 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

Banjara Hills 3.4-4.2 3.6-4.2 3.6-4.5 3.8-4.6 3.8-4.6 3.8-4.6 3.8-4.8 3.8-4.8

Jubilee Hills 3.4-4.0 3.5-4.0 3.7-4.0 4.0-4.2 4.0-4.2 4.0-4.2 4.0-4.2 4.0-4.2

Himayatnagar 2.6-3.0 2.7-3.0 2.7-3.5 2.7-3.7 2.7-3.6 2.6-3.6 2.8-3.6 2.8-3.6

West & East Marredpally 2.5-3.0 2.5-2.8 2.7-3.0 2.8-3.2 2.7-3.2 2.7-3.2 2.7-3.2 2.7-3.2

Begumpet, Somajiguda 2.5-3.0 2.6-3.1 2.8-3.5 2.9-3.6 2.8-3.5 2.8-3.5 2.8-3.5 2.8-3.6

Madhapur, Gachibowli 2.6-3.0 2.5-3.1 2.6-3.4 2.8-3.5 2.8-3.7 3.0-3.6 3.0-3.8 3.0-3.8

Kukatpally 2.4-2.8 2.4-2.9 2.7-3.2 2.9-3.5 2.9-3.5 2.9-3.5 2.9-3.5 2.9-3.6

Miyapur, Nizampet NA 1.8-2.5 1.8-2.5 2.4-3.0 2.3-3.2 2.2-3.3 2.2-3.3 2.2-3.4

Source: Cushman and Wakefield Research The above values for mid range typically include units of 1,200-1,400 sf


Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

Banjara Hills 6.5-7.1 5.8-6.5 6.0-7.2 6.4-7.5 6.4-7.5 6.5-7.5 6.5-7.5 6.5-7.5

Jubilee Hills 6.5-7.1 5.5-6.3 6.0-7.0 6.2-7.2 6.1-7.2 6.1-7.2 6.1-7.2 6.1-7.2

Himayatnagar 3.4-4.4 3.3-4.0 3.7-4.0 3.7-4.2 3.7-4.1 3.6-4.1 3.6-4.2 3.6-4.2

West & East Marredpally 3.3-4.3 3.3-3.8 3.5-4.0 3.6-4.3 3.6-4.3 3.6-4.3 3.6-4.2 3.6-4.3

Begumpet, Somajiguda 3.9-4.5 3.9-4.5 4.1-4.5 4.3-4.8 4.3-4.7 4.3-4.7 4.3-4.7 4.3-4.7

Madhapur, Gachibowli 3.8-4.4 3.5-4.3 3.8-4.9 3.9-5.3 4.0-5.3 4.0-5.3 4.0-5.3 4.1-5.3

Kukatpally 3.3-4.3 3.3-4.0 3.5-4.5 3.8-5.1 3.8-5.1 3.8-5.1 3.8-5.1 3.8-5.1

Miyapur, Nizampet NA 2.6-3.3 2.7-3.4 2.8-3.5 2.9-3.5 2.9-3.5 2.9-3.5 2.9-3.5

Source: Cushman and Wakefield Research The above values for high end typically include units of 1,650-3,000 sf

Project Name Developer Location Number of Units* Type Area of Units-in sf

Patel Smondos Patel Realty Gachibowli 380 Apartment 2 BHK : 9653 BHK: 1,120 4 BHK: 1,417

RV Bhaijikunj RV Nirman Kondapur 300 Apartment 2 BHK: 1,204 3 BHK: 1,473 4 BHK: 1,760

Ashvita Mahindra Lifespace Develop-ers

Kukatpally 664 Apartment 2 BHK: 1,218 to 1,261 3 BHK: 1,567 to 1,847 4 BHK: 2,018 to 2,082

Sri Hemadurga SivHills

BRC Infra Gachibowli 800 Apartment 2 BHK: 1,297 3 BHK: 2,637

My Home Abhra My Home Constructions Ltd Madhapur 387 Apartment 3 BHK: 2,300 to 3,455 4 BHK: 4,045 to 4,650

Aparna Sarovar Grande

Aparna Constructions Gachibowli 720 Apartment 2 BHK: 1,920 to 2,100 3 BHK: 3,675 to 3,745

22


Under construction residential property prices

increased in the fourth quarter of 2012 on account

of growing enquiries in the festive season. The

maximum price appreciation in the mid-end segment

was witnessed in areas like Madhapur, Gachibowli,

Kukatpally where there was a price appreciation of 5%-

10% over the last quarter due to high demand arising

from proximity of these areas to major commercial

office locations. Construction activity has picked up

in peripheral locations such as Uppal, Habsiguda due

to better connectivity prospect brought about by the

onset of construction of the metro rail project.


In the office market, approximately 75% of net

absorption was pre-committed in SEZ properties

in the suburban micro market. The IT/ITes sector

continued to be the key demand driver, accounting

for nearly 90% of the total absorption in Q4 2012.

Many small size transactions were witnessed in the

Grade B developments in CBD, Off-CBD and Prime

Suburban micromarkets. The peripheral location

of Uppal also witnessed few transactions in this

quarter due to the availability of SEZ space as

well as favourable rentals. A total of 603,000 sf

was pre-committed during the quarter, majority of

which was in Grade B developments in suburban

locations of Gachibowli and Raidurg. The continued

shortage of Grade A space kept suburban Grade A

vacancies low at around 7%. Majority of the supply

in this quarter was concentrated in the suburban

location of Gachibowli. However, the rentals

remained stable across all the micro markets.


The city witnessed some new retailers from

categories such as Apparel and Food & Beverages taking

up spaces in premium main streets such as Banjara

Hills and Jubilee Hills. Economic considerations led to

relocation and downsizing in high streets by retailers

operating in categories like Automobile, Apparels and

Footwear. Due to the limited availability of mall space,

the overall mall vacancy remained low at around 1%.

Retail Sector

Aparna Cyberzon Aparna Constructions Nallagandla 900 Apartment 2 BHK : 1,245 3 BHK : 1,430 to 1,850

Aparna Hillpark Lakebreeze

Aparna Constructions Chandanagar 640 Apartment 2 BHK: 1,295 3 BHK: 1,610 to 2,335

Necklace Pride Salarpuria Sattva Off Tank Bund Road 434 Apartment 2 BHK: 1,280 to 1,342 3 BHK: 1,583 to 1,900

23

The residential markets are expected to witness

a moderate increase in overall demand in the next

3-6 months backed by the improving economic and

stable political conditions. Certain locations like

Miyapur, Kukatpally, Kondapur, Raidurg witnessing

infrastructural developments may witness a moderate

increase in capital and rental values. With the Outer

Ring Road stretch becoming operational, peripheral

locations like Shamirpet, Patencheru, Bachupally are

expected to witness the launch of some residential

developments. North-Western residential locations

such as Gachibowli, Kukatpally Nallagandla, Tellapur

are expected to continue witnessing launch of

residential projects.

In the commercial office market, the leasing activity

is likely to gain momentum in the next 3- 6 months

with improvement in the economic conditions and

market sentiments. Continued demand from IT/ITeS

sector and shortage of Grade A space are expected

to further reduce the Grade A vacancy. The city is

expected to witness supply of approximately 1-1.5 msf

in the next quarter, majority of it being in suburban

areas of Madhapur and Gachibowli. The rentals are

expected to remain stable in all the micro markets

in the short term. Upcoming peripheral locations

like Shamshabad, Pocharam and Uppal may witness

healthy absorption in the coming months.

The retail activity is expected to increase in

the next 3-6 months with the launch of two malls

of approximately 560,000 sf. New retailers are

expected to enter the city with new formats in the

coming months. The rentals are expected to increase

in high streets due to the increased leasing activity

on account of anticipated demand. Many residential

properties on main streets such as Jubilee Hills and

Banjara Hills are expected to be converted into retail

spaces in the coming months.

Outlook

24

KolkataMarket Overview

During fourth quarter, the residential market in

the city reflected stable trend in terms of project

launches and transaction activities. Despite

inherent and unmet demand, transaction activities

did not pick up significantly due to the uncertain

job market and high home loan rates. Across major

micro markets demand was primarily driven by mid-

end segment. Project launches remained moderate

as developers continued to launch projects in

anticipation of increased demand in the coming

quarters. Almost 50% of the new projects were

launched in the peripheral locations like Sonarpur,

Garia and Barasat due to the availability of large

land parcels.

Commercial office space market remained

lacklustre during the quarter as leasing activity was

recorded at approximately 150,000 sf, dropping

almost 9% from the last quarter. Supply remained

high as just over 1 msf of space was infused,

including fresh IT-SEZ stock. City vacancy level

for office markets increased marginally from last

quarter to just over 18%.

The retail sector in Kolkata reflected positive

sentiments with increased fresh enquiries and

demand, particularly from Lifestyle and Food &

Beverage brands. No fresh supply was infused

during the quarter. Mall vacancy remained stable

across micro markets as there was no churning of

retailers.

Trends & Updates

Ready Residential Property UpdateProject completions during the quarter mostly

comprised of small projects by local developers.

Almost 200 residential units were reported to be

completed across various micro markets. Prime

high-end ready properties by reputed developers

in prime residential micro markets in Prince Anwar

Shah Road, EM Bypass and New Town Rajarhat

witnessed appreciation up to 10%. Across most

micro markets, capital values remained stable due

to already high prices and slow transaction in the

past two quarters.


25

Key to Locations:

Average Capital values Mid Segment (INR 000/Sq.ft.)

Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

South 2.8-4.3 2.7-3.9 3.2-4.5 3.8-5.5 3.8-5.5 3.8-5.5 3.8-5.5 3.8-5.5

South Central 4.5-5.5 4.2-5.3 4.5-6.0 5.5-8.0 5.5-8.5 5.5-8.0 5.5-8.0 5.5-8.0

South East 2.5-3.0 2.4-2.8 2.5-3.2 2.8-4.5 2.8-4.5 2.8-4.5 2.8-4.5 2.8-4.5

North East 1.8-2.2 1.9-2.2 2.2-2.7 2.4-3.0 2.4-3.0 2.4-3.0 2.4-3.0 2.4-3.0

North 1.8-3.5 1.8-3.4 2.2-4.7 2.8-5.2 2.8-5.2 2.8-5.2 2.8-5.2 2.8-5.2

Source: Cushman and Wakefield Research NNote: The above values for mid-end segment typically include units of 1,500-2,000 sf

South*: Southern Avenue, Dover Lane

South-Central*: Ballygunge, Queens Park, Rainy Park,

Gurusaday Road, etc.

South-East: EM Bypass

South-West: Alipore Park Road, Ashoka Road,

Belvedere Road, etc.

Central: Lansdowne, Park Street

East: Salt Lake

North-East: Rajarhat

South**: New Alipore, Golf Green, Tollygunge, etc.

South-Central**: Hindustan Park

North: Kankurgachi, Lake Town, Jessore Road,

Ultadanga, etc.

Approximately 1,400 residential units were

launched during 4Q 2012, which is almost 71% lower

than the previous quarter. This is primarily because

no large project was launched during this quarter.

New launches were dominated by the local developers

during the quarter. Peripheral locations like Garia,

Nayabad, Bansdroni, Airport- Jessore Road and

Rajarhat witnessed almost 50% of the new launches.

Most of the new launches were priced between INR

2,350 to 3,800 per sf. EM Bypass witnessed the

launch of a significant high-end project marking the

joint collaboration of two major regional companies.


Average Capital values High end (INR 000/Sf)

Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

South 5.0 - 6.0 4.8-5.9 5.3-6.8 6.3-8.5 7.0-9.0 7.5-12.0 7.5-12.0 7.5-12.0

South Central 9.0-10.0 8.5-9.6 9.5-13.0 10.0-18.0 10.0-18.0 10.0-18.0 10.0-18.0 10.0-18.0

South East 4.5-5.7 4.5-5.7 4.5-8.0 5.8-9.2 5.8-9.2 5.8-9.5 5.8-9.5 5.8-9.5

South West 9.5-10.0 8.6-9.8 8.9-13.0 10.0-15.0 10.0-15.0 10.0-15.0 10.0-15.0 10.0-15.0

Central 7.5-8.5 7.2-8.1 7.5-9.2 8.3-10.2 8.3-10.2 8.3-10.2 8.3-10.2 8.3-10.2

East 4.0-5.0 4.0-4.7 4.0-4.9 4.5-5.5 4.5-5.5 4.5-5.5 4.5-5.5 4.5-5.5

North East 2.5-3.0 2.4-2.9 2.4-3.9 2.8-4.5 2.8-4.5 2.8-4.5 2.8-4.5 2.8-4.5

Source: Cushman and Wakefield Research Note: The above values for high-end segment typically include units of 2,000-4,000 sf

26


Sapphire Vinayak Vinayak Group Ballygunge 16 Apartment 3BHK: 1,490-1,590

Aashiyana SP Group & Arush Homes

Beraberi, (Shike-herbagan, Kalipark, Rajarhat)

144 Apartment 2BHK: 8503BHK: 1,157

Jamuna Point Jamuna Developers Kaikhali, VIP Road 65 Apartment 3BHK: 1,2293BHK: 1,863

Shankar Tower Shankar Group Airport Gate 130 Apartment 2BHK: 7583BHK: 1,441

Capricon Royale Capricorn Royale NSC Bose Road Bansdroni

19 Apartment 4BHK: 1,905, 2,135

Vishnu Regency Vishnu Group Naskarpara Bans-droni

46 Apartment 2BHK: 1,052,11003BHK: 1,392, 1,404

Eden Pavilion Eden Group Shahid Kudiram Metro, Garia

96 Apartment 1BHK: 427,5672BHK: 840 to 9453 BHK: 1,228 to 1,302

Aqua Beaumont Olympia Group & Kankaria Holdings

E M Bypass 40 Apartment 3BHK: 3,2254BHK: 4,250Penthouses: 8,889, 7543

Eden Imperial Eden Group Ballygunge 23 Apartment 3BHK: 1,828 to 2,889

Arihant Viento Arihant Group Topsia 45 Apartment 3BHK: 1,539 to 1,7804BHK: 2,317, 2,402

Pelican Twins Pelican Group Nayabad 144 Apartment 2BHK: 965, 9703BHK- 1,330

Mounthill Essence Mounthill Realty Rajarhat 342 Apartments (with Du-plexes)

1BHK: 660,7002BHK: 996 to 14203BHK: 1,500 to 1,758

Bengal DCL DCL Rajarhat 320 Apartment 2BHK: 400 to 8003BHK: 1,203 to 1,553


Large format under construction projects in

Rajarhat continued to witness slow construction work

as delay in infrastructure development in the area

affected sales activity. However, under construction

projects by reputed developers in prime upcoming

micro markets like Rajarhat New Town, EM Bypass

and Kankurgachi witnessed price appreciations of

up to 15%. Comparatively, north peripheral locations

like Birati, Barasat and south peripheral locations like

Garia and Patuli witnessed price appreciations of up to

5% compared to the last quarter. More than 20,900

residential units were under construction across

various micro markets and they are expected to be

completed in next 16 to 18 months.


The commercial market reflected a less vibrant

scenario as occupiers and investors took a cautious

approach resulting in weak transaction activities

during the fourth quarter. Total leasing activity

was noted at 154,735 sf, almost 9% lower than the

previous quarter. Overall vacancy rate of the city was

registered at just over 18%, recording an increase

from 15.7 % in the previous quarter due to significant

fresh Grade A supply.


27

Residential markets are expected to witness

increased transaction activity and new launches in

the upcoming quarter as developers are anticipating

better market conditions going forward. Also

during the first half of 2013, residential market in

Kolkata is likely to see increased demand for mid-

end and affordable segment properties resulting

into marginal appreciation. A significant share of

fresh launches at affordable rates will continue to

come up in peripheral locations like Airport, Birati,

Patuli and Sonarpur due to availability of land at

relatively cheaper prices.

Overall city vacancy in the office sector is

expected to remain stable in the short term and

transaction activity will continue to be moderate.

No major pre-commitment for office space is

expected in the city. Rental values in the CBD

are likely to increase primarily due to consistent

demand. However, rental values in peripheral

locations are likely to remain stable in view of the

large amount of fresh supply in the pipeline.

Retail markets will register increased demand

for prime malls and main street locations in Central

Business District. Approximately 1.2 msf fresh mall

supply is likely to get infused next year. Therefore,

mall rentals likely to be stable in the long term.

However, rentals in main street locations in CBD

will continue to witness appreciation due to

sustained demand.

Outlook

Retail markets in Kolkata exhibited positive

sentiments with increased demand. No fresh mall

supply was infused during the quarter. Due to low

vacancy at 5% in the already operational malls

coupled with lack of fresh supply, under construction

malls witnessed increased enquiries. Quite a few

lifestyle brands were noticed to take up space in the

main streets like Park Street and Camac Street at high

rentals. Rental values remained stable quarter on

quarter across major micro markets. However, prime

main streets witnessed 12% to almost 33% year on

year appreciation due to consistent demand.

Retail Sector

28

MumbaiMarket Overview

In the wake of the prolonged festive season,

developers launched several projects during

the fourth quarter of 2012. The city witnessed a

quarter on quarter increase of 34% in the number

of residential unit launches. Suburban locations like

Borivali, Kandivali and Dahisar witnessed launches

in the high-end segment. Parel in Central Mumbai

and Malad, Goregaon and Andheri in the Far North

micro markets also witnessed significant launches

in the form of slum rehabilitation projects.

The commercial office sector in Mumbai

witnessed absorption of 1.3 msf. Majority of the

absorption (1.1 msf) were in Grade A developments.

This absorption was concentrated in Lower Parel

(27%) and Powai (18%) along with peripheral micro-

markets of Thane (18%) and Thane-Belapur Road

(10%). Absorption was led by the IT/ITeS sector

followed by Logistics and Pharmaceutical sectors.

Rentals continued to remain stable across all micro-

markets except for in the Secondary Business

District of Bandra-Kurla Complex(SBD-BKC), which

witnessed an appreciation on account of the high

demand.

Enquiries from international and domestic

retailers remained active, especially for main street

locations during the fourth quarter of the year.

They mainly came in from the Food & Beverages

and Hypermarket segments. Retailers are looking

at selective expansion into key suburban and

peripheral main street locations in Mumbai.

Trends & Updates


With limited quality stock and minimal projects

under construction the micro markets of South,

South Central, North and North East in Mumbai

witnessed healthy growth in high-end capital values

in the range of 5%-24%. With new launches at

higher capital values the micro markets of Central

and Far North Mumbai witnessed marginal increase

in prices. Mid-end capital values have remained

stable during the quarter in most of the micro

markets in the city.


29

South: Colaba, Cuffe Parade, Nariman Point,

Churchgate, etc.

South Central: Altamount Road, Carmichael Road,

Malabar Hill, Napeansea Road, Breach Candy, Pedder

Road, etc.

Central: Worli, Prabhadevi, Lower Parel/ Parel

North: Bandra (W), Khar (W), Santacruz (W), Juhu, etc.

Far North: Andheri (W), Malad, Goregaon, etc.

North-East: Powai

Key to Locations:

Approximately 7,500 units were launched

during the last quarter of 2012. Of these 75% of the

total launches were concentrated in suburban and

peripheral locations like Andheri, Goregaon, Borivali,

Kandivali and Thane. Majority of the newly launched

projects in these locations are designed to cater to

the high-end segment (60%). Given that there is a

substantial unsold inventory of units that fall within

the mid-range capital value, but their ticket size is

large and unaffordable for a majority of the buyers.

Many developers have responded by launching units

with smaller configurations and hence, smaller ticket

sizes in their projects to ensure sales.


Average Capital values Mid Segment (INR000/sf)

Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

South 27.0-34.0 28.0-37.0 30.0-40.0 30.0-40.0 30.0-40.0 30.0-40.0 35.0-45.0 35.0-45.0

South Central 34.0-43.0 35.0-45.0 40.0-48.0 43.0-52.0 43.0-52.0 43.0-52.0 43.0-52.0 43.0-52.0

Central 18.0-28.0 15.0-26.0 17.0-30.0 17.0-35.0 17.0-35.0 17.0-35.0 20.0-37.0 22.0-37.0

North 13.5-19.5 16.0-24.0 16.0-25.0 16.0-25.0 16.0-25.0 18.0-27.0 18.0-27.0 18.0-27.0

Far North 7.0-9.0 8.5-11.5 9.0-11.5 9.0-13.0 9.0-13.0 9.5-13.5 10.0-14.0 10.0-14.0

North East 6.0-7.4 6.4-8.5 6.5-8.5 6.5-10.0 6.5-10.0 7.5-11.0 8.5-12.5 8.5-12.5

Source: Cushman and Wakefield ResearchNote: The above values for mid-segment typically include units of 1,200 - 1,400 sf

Average Capital values High end (INR000/sf)

Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

South 43.0-55.0 42.5-58.0 43.0-60.0 45.0-65.0 45.0-65.0 45.0-65.0 45.0-65.0 48.0-70.0

South Central 47.0-67.0 42.0- 66.0 45.0-70.0 45.0-75.0 45.0-75.0 45.0-75.0 45.0-75.0 46.0-78.0

Central 33.0-53.0 34.0-55.0 35.0-55.0 32.0-54.0 32.0-54.0 32.0-54.0 32.0-54.0 34.0-58.0

North 27.0-31.0 22.0-30.0 24.0-32.0 24.0-32.0 24.0-32.0 24.0-32.0 25.0-35.0 28.0-40.0

Far North 9.0-13.0 10.0-16.5 11.0-16.5 11.0-16.5 11.0-16.5 12.0-18.0 12.0-18.0 12.5-18.0

North East 14.0-18.0 10.0-16.0 10.0-16.0 10.0-18.0 10.0-18.0 11.0-18.0 11.0-18.0 14.0-22.0

Source: Cushman and Wakefield ResearchNote: The above values for high-end segment typically include units of 1,650 - 3,000 sf

30


Lodha Venezia Lodha Group Parel 480 Apartments 2BHK: 1,3003BHK: 1,700 to 2,000

Omkar Veda Omkar Group Parel 300 Apartments 2BHK: 1,250 to 1,3803BHK: 1,650

Crescent Bay L&T Realty Parel 320 Apartments 2BHK: 1,3603BHK: 1,8004BHK: 2,500

Levels Kanakia Malad East 296 Apartments 2BHK: 1,222 to 1,3503BHK: 1,6784BHK: 2,300

Kohinoor City Phase 2 Kohinoor Developers Kurla 120 Apartments 2BHK: 830 to 9623BHK: 1,439 to 1,975

Sheth Midori Sheth Developers Dahisar East 351 Apartments 1BHK: 630 to 7752BHK: 1,050

Godrej Platinum Tower 3 Godrej Properties Vikhroli 88 Apartments 2BHK: 8433BHK: 1,1104BHK: 1,746

JP Decks JP Infra Goregaon East

204 Apartments 2BHK: 1,2903BHK: 2,1204BHK: 2,5805BHK: 4,240

Runwal Garden City (Lily and Dhalia)

Runwal Developers Thane 136 Apartments 2BHK: 9053BHK: 1,200

Neumec Crescent Aria Neumec Group Worli 140 Apartments 2BHK: 1,4653BHK: 2,000 to 2,5004BHK: 4,000

Signature II Chaubey Realties Dahisar East 52 Apartments 1BHK: 6391.5BHK: 8192BHK: 1,107 to 1,134

Signature III Chaubey Realties Dahisar East 144 Apartments 2BHK: 1,134

Lodha Grandezza Lodha group Thane 144 Apartments 2BHK: 1,089 to 1,1343BHK: 1,368 to 1,557

Lodha Evoq Lodha group Wadala 180 Apartments 3BHK: 2,628 to 3,0424BHK: 3,141 to 4,662Duplex: 5,130 to 8,256Pent House: 5,787 to 8,867

DB Crown Tower 3 DB Realties Prabhadevi 284 Apartments 3BHK: 2,1004BHK: 2,845

Sai Proviso County Sai Proviso Panvel 108 Apartments 1BHK: 6632BHK: 921 to 1,046

Parinee Essence Parinee Developers Kandivali 160 Apartments 1BHK: 6722BHK: 856

Rivali Park CCI Projects Borivali 156 Apartments 2BHK: 1,2983BHK: 1,643

Runwal Anthurium Valintine

Runwal Developers Mulund 120 Apartments 2BHK: 1,070 2.5BHK: 1,185 to ,275 3 BHK: 1,425

Omkar Meridia Omkar Group Kurla 315 Apartments 2BHK: 1,2363BHK: 1,566 to1,608

Mayfair Mistique Mayfare Developers Ghatkopar 40 Apartments 2BHK: 1,2983BHK: 1,643

Rising City Hubtown, Marathon, Rajesh Lifespaces

Chembur 504 Apartments 2BHK: 1,2302.5BHK: 1,4753BHK: 1,5353.5BHK: 1,660

Ventana Hiranandani Group Thane 170 Apartments 1BHK: 650

Rustomjee Azziano F wing

Rustomjee Thane 96 Apartments 2BHK: 1,135 to 1,209

Marathon Nexworld Marathon Group Dombivali 300 Apartments 1BHK: 6002BHK: 1,000

Mayfair Hillcrest Mayfare Developers Vikhroli 84 Apartments 2BHK: 1,0003BHK: 1,3004BHK: 2,200

31

Gundecha Montego Gundecha Developers Andheri 36 Apartments 1BHK: 4442BHK: 702

Satellite Glory Saltellite Group Andheri 35 Apartments 3BHK: 2,0964BHK: 2,416

Marathon Nextown Marathon Group Dombivali 216 Apartments 1BHK: 600 to 6752BHK: 1,050

Agarwal Vrindavan Township

Agarwal Group Virar 252 Apartments 1BHK: 630 to 6852BHK: 905 to1,0103BHK: 1,230 to 1,365

34 east Parinee Developers Juhu 40 Apartments 4BHK: 2,900

11 west Parinee Developers Juhu 40 Apartments 3BHK: 2,245

Bhagtani Riyo Jaycee Home Mira Road 490 Apartments 1BHK: 600 to 7001.5BHK: 8402BHK: 900

Bhagtani Sapphire Jaycee Home Dahisar 92 Apartments 1BHK: 6752BHK: 1,112

Grandioso INR Group Kalina 56 Apartments 2BHK: 1,5303.5BHK: 2,0404.5BHK: 2,530

Vedic Heights MLH Group Kandivali 324 Apartments 1BHK: 6002BHK: 800

Swaroop Atlantis Swaroop Developers Bhandup 147 Apartments 2BHK: 1,2003BHK: 1,650

Dosti Ambrosia New Tower

Dosti Group Wadala 132 Apartments 2BHK: 1,268 to 1,3103BHK: 1,539 to1,627

Mayfair Meridian Mayfare Developers Thane 120 Apartments 2BHK: 720 to 1,000

Goodwill Paradise Phase II

Goodwill Developers Kharghar 26 Apartments 3BHK: 1,720 to 1,750

Shah Lotus Shah Developers Vashi 27 Apartments 4BHK: 2,700

Yonne Nahar Amrit Shakti Chandivali 110 Apartments 2BHK: 1,4003BHK: 1,850

Neev Amberwood Neev Group Andheri 176 Apartments 2BHK: 1,2243BHK: 1,719

Desia Oceanic Spark Developers Worli 36 Apartments 3BHK: 2,0754BHK: 2,691 to 2,795Duplex: 4,800 to 5,000

Tridhaatu Prarmbh Tridhaatu Realty Chembur 52 Apartments 1BHK: 7522BHK: 955

Kamala Estelle Kamala Landmarc Wadala 60 Apartments 1BHK: 8102BHK: 1,050

Milano Lodha Fiorenza Lodha group Goregaon 50 Apartments 4BHK: 3,159 to 3,1955BHK: 5,373


Suburban and peripheral locations like Goregaon,

Malad, Thane, Kharghar and Mira Road witnessed

healthy construction activity during the quarter.

During the festive season, a number of developers

offered various incentives and attractive payment

timelines to attract potential customers. With little

land available for development, developers are

increasingly executing slum rehabilitation projects to

bridge the shortfall of residential units.


32

Lack of transactions and limited churn resulted

in stable rentals for prominent main-street

locations like Linking road, Colaba, Kemps Corner,

Fort and Lokhandwala. Established mall locations

of Lower Parel, Malad, Goregaon, Mulund, Vashi

and Thane have limited availabilities of mall space.

Despite low vacancy levels in these malls, as a

result of the low transaction activity and limited

churn, the mall rentals continued to remain stable

during the fourth quarter of the year. Lack of

quality supply is a major concern for growth of the

retail industry in Mumbai.

Mumbai witnessed a supply of 1.2 msf, which was

concentrated in peripheral locations of Thane and

Thane-Belapur Road. Majority of the new supply

(63%) was in the form of IT developments. With

absorption remaining healthy during the quarter,

vacancy slid to under 20% at the end of the year.

With a large quantum of supply and substantial

amount of vacant space available rentals remained

stable during the quarter. BKC which has witnessed

healthy demand for corporate offices witnessed a

marginal increase in Grade A rentals.

Retail Sector


With capital values maintaining their high levels

and subdued demand, no further increase in prices

is expected in the near term. Further, as a result

of high input costs, developers are not expected

to go in for any price cuts in the coming months.

However, new launches in the form of rehabilitation

and redevelopment projects with smaller ticket

sizes are expected to be healthy in the new year.

Fresh supply of 2.2 msf of office space is

expected to be completed during the first quarter

of 2013. Absorption is also expected to remain high

with a number of deals currently in the pipeline.

However, the large supply expected to become

available will keep commercial rentals stable

across Mumbai.

Transactions as a result of churn in established

mall locations like Lower Parel, Malad, Goregaon

and Vashi are expected to happen at higher

rentals due to low availabilities in these micro

markets. Just one mall is expected to be delivered

in 2013 at Thane. Preference for main street

locations by both international and Indian retailers

for further expansions remains high. This could

lead to increase in rentals at key locations like

Lokhandwala Andheri, Colaba and Linking Road.

Outlook

33

Given the weak sentiments prevailing in the

economy, the demand and supply in the residential

market continued to witness slow growth across

most micro markets in NCR during the last quarter

of 2012. In terms of upcoming supply, projects

were launched mainly in the peripheral locations

of Noida having approximately 68% share of units

launched and the remaining share in Gurgaon. More

than 90% of the total new units launched cater to

the mid-end and affordable segments. With the

cautious buyer sentiment and slowdown in supply,

prices of ready property did not move significantly

across NCR micro markets during the quarter.

During the 4Q 2012, absorption for the office

market was recorded at approximately 1.4 msf,

which is nearly 26% higher than the previous

quarter, given the rise in leasing activity with

occupiers opting for expansion and consolidation.

Demand was mainly concentrated in Gurgaons CBD

(Cyber City and M.G. Road) along with peripheral

locations such as Sohna Road and Golf Course

Extension Road, which together witnessed a

significant share of close to 62% of the total leasing

activity in the NCR region. Rental values witnessed

an appreciation in the range of 1%-6% across micro

markets during the fourth quarter.

With the slow pace of construction along with

completion deferments, no fresh mall supply was

witnessed in NCR during 4Q 2012. Due to moderate

leasing activity in only select malls, rental values

remained stable across all micro markets during

the last quarter of 2012. For main streets, rentals

remained stable for most micro markets with DLF

Galleria in Gurgaon being an exception as it recorded

a quarter-on-quarter rental appreciation of 9.5%

due to high demand from domestic retailers.

National Capital RegionMarket Overview

Trends & Updates


Prices of ready properties across the micro markets

of Gurgaon and Noida have witnessed an appreciation

in the range of 4%-15% during the quarter given the

rise in input costs for developers and the increased

price points of newly completed projects. At the same

time, in Delhi, prices across most markets were stable

with marginal fluctuations given the slowdown in terms

of transaction activity and high unsold inventories.


34

Average Capital values Mid range (INR 000/sf.)

Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

South East 14.0-16.0 14.5-16.5 15.0-20.0 15.0-28.0 20.0-30.0 20.0-30.0 20.0-30.0 25.0-30.0

South Central 18.0-20.0 18.5-20.5 20.0-23.5 25.0-30.0 25.0-30.0 25.0-30.0 25.0-30.0 25.0-30.0

Gurgaon 3.8-5.2 4.0-6.5 4.5-7.5 5.0-9.0 6.5-9.0 6.5-10.0 6.5-9.0 6.8-10.5

Noida 3.0-4.5 3.2-5.5 3.8-5.6 4.2-5.8 4.5-6.0 4.5-6.0 4.2-5.8 4.3-6.2

Source: Cushman & Wakefield ResearchNote: The above values for mid range segment typically include units of 1,600-2,000 sf

High-end Segment

South-West: Shanti Niketan, Westend, Anand Niketan,

Vasant Vihar

South-East: Friends Colony East, Friends Colony West,

Maharani Bagh, Greater Kailash - I, Greater Kailash II.

South Central: Defence Colony, Anand Lok, Niti Bagh,

Gulmohar Park, Hauz Khas Enclave, Safdarjung

Development Area, Mayfair Gardens, Panchsheel Park,

Soami Nagar, Sarvodaya Enclave.

Central: Jorbagh, Golf Links, Amrita Shergil Marg,

Aurangzeb Road, Prithviraj Road, Sikandara Road, Tilak

Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar,

Nizamuddin, Tees January Marg, Chanakyapuri.

Mid-end Segment

South-East: New Friends Colony, Kalindi Colony, Ishwar

Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave.

South Central: Uday Park, Green Park, Saket, Asiad

Village, Geetanjali Enclave, Safdarjung Enclave,

Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar.

Key to Locations:

The overall number of projects that got launched

in NCR during 4Q 2012 increased by approximately

11% in comparison to the previous quarter. The new

project launches were concentrated in micro markets

of Gurgaon and Noida, namely in Dwarka Expressway,

Southern Periphery Road, Noida Extension and Greater

Noida. Most of these projects cater to the demand of

the mid-end segment with a base price in the range of

INR 3,500-6,400 per sf in Noida and INR 4,200-9,000

per sf in Gurgaon. Developers also continued to launch

co-branded residences in the luxury segment across the

city. The fourth quarter has seen a few high-end and

branded residences (approximately 8% of total units)

launched that are targeted at HNIs.



Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012

South West 28.0-33.0 29.0-34.0 36.0-43.0 42-50.0 50.0-60.0 50.0-60.0 50.0-60.0 50.0-60.0

South East 19.0-23.0 21.0-24.0 24.0-30.0 25.0-35.0 25.0-40.0 25.0-40.0 25.0-40.0 25.0-45.0

South Central 20.0-23.0 21.0-25.0 25.0-32.0 27.0-40.0 27.0-40.0 27.0-40.0 27.0-40.0 27.0-50.0

Central 45.0-50.0 40.0-45.0 50.0-57.0 50.0-65.0 60.0-80.0 60.0-80.0 60.0-80.0 60.0-80.0

Gurgaon 5.2-11.0 5.3-12.5 6.2-18.0 8.5-21.0 9.5-25.0 10.0-26.0 9.5-30.0 10.5-32.0

Noida 5.2-6.2 5.2-6.5 5.5-7.0 5.5-7.5 5.8-8.0 5.8-8.0 5.8-8.0 6.2-8.1

Source: Cushman & Wakefield ResearchNote: The above values for high end segment typically include units of 2,000-4,000 sf

35

Project Name Developer Location Number of Units* Type Area of Units -in sf

Oyster Grande Adani & M2K Sector 102, Dwarka Expressway, Gurgaon

760 Apartment/ Penthouse

3BHK: 1,689 to 4,548 4BHK: 4,7505BHK: 5,826 to 7,283

ATS Triumph ATS Sector 104, Dwarka Expressway, Gurgaon

420 Apartment 3BHK: 2,290 4BHK: 3,150

Prateek Edifice Prateek Group Sector 107, Noida 420 Apartment 3BHK: 2,070 to 2,5004BHK: 3,300 5BHK: 4,300

Brys Buzz Brys Group Sector 150, Noida 260 Apartment/ Duplex 3BHK: 3,200 to 4,7004BHK: 4,300 to 5,1005BHK: 6,300 6BHK: 6,700 to 8,650

Visionnaire Homes BPTP Sector 70 A, Southern Peripheral Road, Gurgaon

45 Villas Villas: 4,700 to 8,740

The Eiffel Krrish Group Gwal Pahari, Gurgaon Faridabad Road, Gurgaon

14 Duplex 5BHK: 15,000

Maceo (Phase II) Anant Raj Sector 91, Gurgaon 370 Apartment 2BHK: 1,195 to 1,2853BHK: 1,708 to 2,113 4BHK: 2,451

Wood Shire M3M Sector 107, Dwarka Expressway, Gurgaon

300 Apartment 2BHK: 1,350 to 1,550 3BHK: 1,960 to 2,3604BHK: 2,700

Spring homes Orris Infra Sector 85, Gurgaon 560 Apartment 2BHK: 1,200 3BHK: 1,700 to1,9104 BHK: 2,300

The Summit (Phase II)

Godrej Properties Sector 104, Dwarka Expressway, Gurgaon


2BHK: 1,269 to 1,446 3BHK: 1,647 to 1,8164BHK: 2,324 to 4,500

Monde de Provence Krrish Group Gwal Pahari, Gurgaon Faridabad Road, Gurgaon


CB Property Insights Q4 2012

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Transcript of CB Property Insights Q4 2012