CB Property Insights Q4 2013

1

The Indian economy registered a growth of 4.8%

during July-September 2013, recording a slight

improvement over the previous quarter’s growth rate

of 4.4%. The improvement in quarterly growth can be

primarily attributed to improved performance of the

‘agriculture, forestry and fishing’ sector, which

registered a growth of 4.6%. This was due to the good

crop production witnessed during the Kharif season.

Other economic activities that registered significant

growth during the quarter included ‘electricity, gas

and water supply’ at 7.7%, ‘construction’ at 4.3%,

‘financing, insurance, real estate and business

services’ at 10% and ‘community, social and personal

services at 4.2%. The manufacturing sector showed

minor signs of recovery, while other sectors such as

‘mining and quarrying’ and ‘trade, hotels, transport

and communication’ registered a slowdown in

performance compared to the same period last year.

Growth in exports over the past few months also aided

improvement in GDP growth during the quarter. The

GDP growth rate for H1 2013-14 stood at 4.6%,

compared to 5.3% during the same period last year.

The Reserve Bank of India (RBI) lowered its

growth forecast from 5.7% to 4.8% for 2013-14 in

October 2013, citing downside risks from domestic

factors like weakening consumption and investment

demand. This followed the earlier downside revisions

by Prime Minister’s Economic Advisory Council

(PMEAC), Asian Development Bank (ADB) and

International Monetary Fund (IMF). The Current

Account Deficit (CAD) narrowed marginally during the

quarter, due to decline in oil and non-oil imports and

improvement in exports. However, wholesale and

retail inflation soared to 7.52% and 11.74%,

respectively by November and added to the woes of

the RBI. Considering the macro-economic scenario,

although the RBI raised the repo rate initially by 25

basis points to 7.75% in October 2013, the Central

Bank maintained it at the same level during December

2013. Further, the RBI cited the need to adopt a wait-

and-watch approach to gain more clarity on

performance of various factors, considering the time

lag with which monetary policies affect growth.

However, the RBI stated that it will remain vigilant of

INDIA MARKET OVERVIEW

GROSS DOMESTIC PRODUCT GROWTH RATEG

row

th R

ate

(%

)

Source: Central Statistical Organisation, Govt. of India

PROPERTY INSIGHTS

India Quarter 4, 2013

Sluggish Market, Slightly Positive Outlook

The general Consumer Price Index (CPI) rose to

11.74% in November 2013, driven by substantial

increases in food prices, non-food and non-fuel

categories. Wholesale Price Index (WPI) also rose

significantly to 7.52% in November 2013, rising from

5.16% in June 2013. The WPI and CPI for 2Q 2013-14

were recorded at 7.0% and 10.1%, respectively. As

retail inflation surpassed double digits and WPI

inflation continued its upswing, the RBI in its

monetary policy review in December stated that food

prices are likely to ease due to the better supply hitting

the markets post the monsoons. Consequently, it

maintained a neutral stance on policy matters, citing

the requirement to witness the impact of monetary

tightening and an anticipated drop in food prices.

The Indian economy registered a GDP growth of

4.8% in July-September 2013 as compared to 5.2%

growth recorded during the same period last year.

However, the economy showed minor signs of

recovery from 4.4% growth registered in the April-

June 2013 quarter, driven mainly by the improvement

in agricultural sector due to good Kharif crop season

and recovering exports. The decline in oil and non-oil

imports, along with an increase in exports brought

Economic Trends

Trends & Updates

the performance of external markets, and will act

even on off-policy dates, if required.

The last quarter of the year witnessed certain

signs of improvement in the economy, as growth

picked-up and some sectors performed better. The

office space across top eight cities recorded total net

absorption of 6.7 million square feet (msf), registering

a 23% quarter-on-quarter (q-o-q) increase. The total

leasing activity for the same period was higher at

nearly 9.6 msf as over 30% of the transactions

comprised of relocations and/or consolidations by

occupiers. NCR and Bengaluru topped the charts,

recording 1.8 and 1.5 msf of total net absorption

respectively during 4Q 2013. Mumbai ranked third,

recording a net absorption of 1.1 msf. The overall q-o-q

supply increase was nearly 54% at 10.2 msf with NCR,

Hyderabad and Bengaluru contributing 4.0, 2.2 and 1.2

msf of the supply, respectively.

Residential markets continued to reel under the

effect of cautious sentiment prevailing amongst the

stakeholders; launch activity declined by 11% on a q-o-

q basis and capital and rental values remained stable

in all cities. The only exceptions included Bengaluru,

which registered 10-25% q-o-q rental appreciation in

certain parts of the city. High-end capital values

witnessed appreciation upto 12-13% in select areas of

Bengaluru and Chennai. Mid-end capital values in

Bengaluru and Hyderabad also recorded a positive

trend during the quarter. Thus, the residential markets

and its stakeholders mostly exhibited a wait-and-

watch approach during the quarter with a hope of

revival in activity during the coming year.

*Top eight cities include NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad

2

EXCHANGE RATE MOVEMENT (INR/USD)

Source: RBI

INR

/US

D

BSE REALTY INDEX

Source: BSE

IND

EX

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR

INR

Cro

re

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

Residential capital values remained stable across

segments in Ahmedabad, Kolkata, Mumbai and Pune

during the quarter. However, some sub-markets in

the two southern cities of Bengaluru and Chennai

registered capital appreciation in high-end segment

during the quarter. Bengaluru registered 3-12% q-o-

q capital appreciation, while Chennai registered an

increase of 4-13%. Adyar in Chennai registered a

13% rise in high-end capital values during the

quarter, due to inherent demand for such properties

in the micro-market and infusion of new supply at

higher price points. The off-central locations in

Bengaluru comprising of areas like Benson Town,

Frazer Town, Richard Towns and Dollar Colony

registered highest q-o-q capital appreciation of 12%

in the high-end segment. Noida in NCR registered a

minor correction of 1% in the high-end capital

values. In mid-end segment capital values,

Bengaluru witnessed an uptrend of 3-13% across

submarkets during the quarter. Madhapur,

Gachibowli and Kukatpally areas of Hyderabad also

witnessed a 3% q-o-q appreciation in the mid-end

segment, due to relatively better demand for these

locations considering their proximity to IT and

financial hubs of the city. Rental values remained

almost stable in all cities except Bengaluru. Select

submarkets of Bengaluru recorded 10-25% capital

Residential Trends

appreciation in mid and high-end rentals due to

limited availabilities in these areas, coupled with

their connectivity to prominent workplaces.

Approximately 38,900 units were launched in 4Q

2013 across the top eight cities of India. The total

unit launches declined by 11% q-o-q and 12% y-o-y.

some respite to the Current Account Deficit (CAD),

which moderated to 1.2% of GDP after soaring to 4.9%

during April-June 2013. The Rupee stabilized at INR 61-

63 against the US Dollar over the past three to four

months. The RBI stated that over this period, the

inflows in swap windows had contributed significantly

to rebuilding foreign exchange reserves, which would

help the Indian currency stabilize in the foreign

exchange market and build resilience against external

factors such as the looming US Federal Reserve

tapering. However, a very high inflation could also add

to the risk of exchange rate volatility.

RBI’s stance of maintaining the repo rate,

improvement in GDP, along with stabilization of the

Indian Rupee, led to a recovery in the Bombay Stock

Exchange’s (BSE) Realty Index to 1,475.45 points on 27

December 2013, almost four months after it bottomed

to a 52-week low of 1,126.84 points on 28 August, 2013.

It increased by nearly 22.5% during the quarter, to

close at 1,433.41 points by December end.

India witnessed total FDI inflows of INR 373,860

million in 2Q 2013-14 (July-September). The FDI

inflows increased by 24.5% from the previous quarter

with highest contribution of nearly 9% from the

Construction Development sector. In 2Q 2013-14, the

Construction Development sector recorded FDI

inflows of INR 32,100 million, the highest inflow in the

last sixteen quarters. The increase in FDI inflows to the

sector during the quarter indicates an improvement in

the market sentiment and gradual pick-up in the

market activity.

RESIDENTIAL CAPITAL VALUES GROWTH INDEX

Source: Cushman & Wakefield Research

NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 4Q 2013


Ahmedabad recorded a q-o-q increase of 18% in

number of units launched, mainly due to the launch

of second phase of a large township in a peripheral

location. Bengaluru and Kolkata also recorded 5%

and 6% increases respectively in number of units

launched during the quarter. Bengaluru witnessed

over 13,800 unit launches during the quarter,

contributing to nearly 36% of the total launch

activity across top eight cities. It was followed by

NCR and Mumbai contributing to 20% and 14% of

the launches respectively. Pune saw a stable trend in

number of launches during the quarter and

contributed to 10% of the launches in top eight

cities. Hyderabad witnessed less than 750 units

being launched in 4Q 2013, with a q-o-q decline of

61% in the launch activity. It was followed by Chennai

registering a 38% decline in q-o-q launches.

The residential markets are likely to witness

stability in rental and capital values during the next

few months with a gradual pick-up in the launch

activity, despite subdued demand and cautious

sentiment amongst buyers. Whilst capital values and

rentals are largely expected to remain stable, prime

micromarkets may see marginal uptrend whilst

emerging and peripheral locations with substantial

supply in the pipelines may see some corrections.

4

5

Index

Ahmedabad................................................................................... 6

Bengaluru...................................................................................... 9

Chandigarh.................................................................................... 14

Chennai.......................................................................................... 17

Hyderabad..................................................................................... 21

Kolkata........................................................................................... 28

Jaipur........................................................................................... 25

Mumbai.......................................................................................... 33

National Capital Region.............................................................. 37

Pune............................................................................................... 41

Ahmedabad

Market Overview

During 4Q 2013, Ahmedabad witnessed

approximately 2,500 units launched, an increase of

18% from the previous quarter. The increase was

primarily due to the launch of an additional phase

(consisting of 2,300 units) of a large township

project along S.G. Highway. As a result, launches

during the quarter continued to be concentrated

along S.G. Highway (97%), catering mainly to the

mid-end segment.

Ahmedabad’s office markets witnessed an overall

net absorption of 219,400 square feet (sf) during 4Q

2013, which is more than double the previous

quarter. Net absorption was concentrated in the sub-

markets of Prahladnagar (70%) and Sarkhej-

Gandhinagar Highway (30%); driven primarily by

demand from the Pharmaceuticals, BFSI and the IT-

ITeS sectors. Net absorption for 2013 was recorded

at approximately 566,000 sf, a 37% decline

compared to 2012, primarily due to subdued demand

and limited expansions by various companies.

The city’s overall vacancy for retail spaces in

malls declined 0.2 percentage points over the

quarter and was recorded at 28.5%. Given that

transaction activity continued to remain low due to

limited availability of quality mall spaces, the rentals

remained stable across all mall locations in the city.

Mall vacancies have steadily declined from 33% in

the beginning of 2013 to the current levels.

Demand for ready residential property remained

stable in the city. Prices for ready residential

properties also continued to remain stable across all

micro-markets in the mid and high-end segments.

Trends & Updates

Ready Residential Property Update

End-users preferred emerging locations on the S.G.

Highway, Bopal, Naroda, Motera and Ranip over other

established destinations in the city due to their lower

ticket sizes ranging from INR 20 lakhs to 40 lakhs.

6

READY RESIDENTIAL PROPERTY VALUES IN DECEMBER '13

Source: Cushman & Wakefield Research Represents Mid and High End segments

Ahmedabad witnessed a significant increase in

the number of new launches during the fourth

quarter with the launch of another phase of Adani

Elysium Towers. Approximately 63% of the units

New Residential Launches

launched were in the 2 BHK configurations, whilst

35% were 3 BHK and the balance were 4 BHK. Most

of the new launches were in the vicinity of

Vaishnodevi Circle on S.G. Highway.

* Estimated and as per market information

Project Name Developer Location Number of Units* Type Area of Units (sf)

Adani Elysium Towers 2,300 Apartment 2 BHK: 1,140 to 1,400 3 BHK: 1,449

Adani Developers S.G. Highway

Swarnim Square 80 Apartment 2 BHK: 1,152 3 BHK: 1,449

Gopinath

Developers

S.G. Highway

Krupal Heritage 72 Apartment 2 BHK: 1,368 3 BHK: 1,632 to 1,819

Narayankrupa

Infra

Prahladnagar

Ratan Paradise 60 Apartment 4 BHK: 3,340Ratan Infracon S.G. Highway

Average Capital Values – High End (INR '000/sf)

Satellite

Vastrapur

S.G.Highway

Prahlad Nagar

Location

4.0 - 4.8

3.7 - 4.0

3.7 - 4.3

4.2 - 5.3

2010

4.3 - 6.0

3.7 - 5.0

3.7 - 4.5

4.2 - 6.0

2011

4.3 - 6.0

3.7 - 5.0

3.7 - 4.5

4.2 - 6.0

2012

4.3 - 6.0

3.7 - 5.0

3.7 - 4.5

4.2 - 6.2

1 2013Q

4.3 - 6.0

3.7 - 5.0

3.7 - 4.5

4.2 - 6.2

4Q 2013

4.3 - 6.0

3.7 - 5.0

3.7 - 4.5

4.2 - 6.2

3Q 2013

4.3 - 6.0

3.7 - 5.0

3.7 - 4.5

4.2 - 6.2

2Q 2013

Source: Cushman and Wakefield Research

Note: The above values for high-end segment typically include units of 2,000-4,000 sf

Average Capital Values – Mid-Segment (INR ‘000/sf)

Satellite

Vastrapur

S.G.Highway

Prahlad Nagar

Location

2.8 - 3.8

2.6 - 3.5

3.0 - 3.8

2.8 - 3.6

2010

2.8 - 4.3

2.6 - 3.8

3.3 - 4.3

3.2 - 4.2

2011

2.8 - 4.3

2.6 - 3.8

3.3 - 4.3

3.2 - 4.2

2012

2.8 - 4.3

2.6 - 3.9

3.3 - 4.3

3.2 - 4.3

1Q 2013

2.8 - 4.3

2.6 - 3.9

3.0 - 4.3

3.2 - 4.3

4Q 2013

2.8 - 4.3

2.6 - 3.9

3.0 - 4.3

3.2 - 4.3

3Q 2013

2.8 - 4.3

2.6 - 3.9

3.3 - 4.3

3.2 - 4.3

2Q 2013


Note: The above values for mid-end segment typically include units of 1,200-1,800 sf

Under Construction Residential Property Update

During 4Q 2013, locations in western Ahmedabad

like Bopal, South Bopal and Vaishnodevi witnessed

healthy construction activity in the affordable and

mid-end segments. After a correction of 4-8%

during the previous quarter, capital values remained

stable during the fourth quarter of 2013. A slowdown

in transaction activity continued and developers

were seen offering discounts to prospective buyers

in order to boost sales.

7

Commercial Office Sector

After no supply during the last two quarters, the

city witnessed a commercial office supply of

915,000 sf in the fourth quarter of 2013. With net

absorption remaining low, overall vacancies

increased 3.5 percentage points to 17.7% at the end

of the quarter. After a correction in the previous

quarter, rentals continued to remain stable during

the fourth quarter across all submarkets in the city.

Overall supply in 2013 continued to remain high

despite limited demand and was registered at 1.9

msf, a marginal decline of 6% compared to 2012.

Retail Sector

Limited options of quality retail spaces in main

street locations like C.G. Road, Law Garden,

Prahladnagar and Satellite Road has resulted in low

transaction activity at these locations. As a result,

rentals continued to remain stable during 4Q 2013.

Enquiries from Food & Beverages (F&B) and apparel

segments remained high in the city, but the actual

transactions remained limited. Preference for main-

street locations like Prahladnagar and S.G. Highway,

which are in proximity to commercial office

locations, remained high among retailers, primarily

from the F&B segment.

Outlook

The quantum of residential unit launches is

expected to remain low until the new Development

Control Rules come into effect. The new regulations

will provide higher FSI and incentives to affordable

housing projects, which will lead to overall increase

in residential supply during the next year. Moderate

demand and high level of unsold inventory is likely to

keep a downward pressure on capital values.

Approximately 700,000 sf of Grade A space is

expected to become operational at Prahladnagar

and Motera during the first quarter of 2014. Overall

city-level vacancy is likely to increase with low pre-

commitment levels in these developments, which

could result in additional pressure on rental values

across the city.

Healthy enquiries by retailers for main-street

locations like C.G. Road, Prahladnagar and Law

Garden coupled with low availabilities could result in

striking new transactions at high rentals. The

existing high vacancy levels in malls will keep rentals

under pressure, especially at locations like S.G.

Highway. However, the current low vacancy levels in

malls at Vastrapur and the upcoming lease renewals

are likely to result in increased enquiries from

established retailers vying for space in Vastrapur

malls. Considering the low preference for malls

amongst shoppers, no new mall is currently under-

construction in the city.

8

Bengaluru

Market Overview


Trends And Updates

Most residential submarkets registered a stable

rental trend during this quarter. Nevertheless, select

submarkets such as South in high-end segment,

South-East in mid-end segment and Off-Central** in

mid-end segment saw a q-o-q rental appreciation

between 10-25%. Proximity to IT hubs and

developed social infrastructure led to stronger

preference for locations in these submarkets. In

addition to this, limited availability fuelled the rise in

rentals for South and Off-Central** locations.

The quarter also recorded notable q-o-q capital

value increase in the range of 6-13% in high-end

locations of Off-Central, North-West and mid-end

locations of Central, Off-Central** and Far South.

While limited supply governed the uptrend in Off-

Central, North-West, Central and Off-Central**

submarkets, demand from IT-ITeS employees led to

the rise in Far South submarket. Meanwhile, other

submarkets like South, North in high-end and South-

East, South-West, West in mid-end saw an uptrend of

3-5%, owing to inherent demand in these locations.

Further, submarkets like East, South-East and North

witnessed completion of several projects in 4Q 2013.

Continuing with the momentum of previous

quarters, Bengaluru’s residential market witnessed

new launches of around 13,800 units in 4Q 2013, a q-o-

q increase of 5%. Similar to previous quarters, most

launches (57%) belonged to the mid-end category

with the Southern submarket witnessing maximum

new launches (58%). The eastern submarket

accounted for 30% of the total new launches during

this quarter. While connectivity and proximity to IT

hubs was the key reason for healthy residential

activity in these locations, existing robust support

infrastructure was also instrumental in aiding the

demand. Amidst this, high-end segment capital values

in select residential submarkets like Off-Central,

North-West and mid-end segment capital values like

Central, Off Central* and Far South recorded a notable

q-o-q rise in the range of 6-13%.

Bengaluru’s office space market witnessed a

supply of nearly 1.2 million square feet (msf) in the last

quarter of the year, adding up to a total supply of 5.8

msf for the year 2013. Unlike the previous quarter, this

quarter saw no new spaces in SEZs being added to the

stock and all the supply belonged to commercial space

category only. However, 4Q 2013 recorded a q-o-q

drop of 19% in new supply.

Owing to deferment of a mall, which was

anticipated to become operational in 4Q 2013,

Bengaluru’s retail real estate market did not see any

supply during 4Q 2013. The absence of new mall

supply led to drop in mall vacancies during this

quarter. The city level mall vacancy was recorded at

8.5% approximately, a q-o-q drop of 1.8 percentage

points. Apparels and Food & Beverages (F&B) retailers

accounted for majority of demand in the malls.

Although, rental values for almost all malls remained

stable during this quarter, there was a q-o-q rise of

12% in rentals for malls in Malleswaram, primarily due

to low availability at this location.



9

Key to locations:

High-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: Kormangala, 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

10


Note: The above values for mid-end segment typically include units of 1,600-2,000 sf.

Average Capital Values – Mid-Segment (INR’000/sf)

Location

Central

East

South-East

North

South-West

Off-Central*

Off-Central**

North-West

South

2008

5.8 - 7.0

2.7 - 3.1

2.9 - 4.0

3.0 - 4.0

2.8 - 4.2

3.5 - 6.0

4.0 - 6.0

4.2 - 5.8

5.0 - 6.5

2009

5.0 - 6.0

2.4 - 2.7

2.5 - 3.2

2.8 - 4.0

2.7 - 3.9

3.3 - 5.7

3.7 - 5.7

3.5 - 5.2

4.6 - 5.7

2010

5.5 - 7.0

2.7 - 3.1

2.8 - 4.0

2.8 - 4.4

3.2 - 4.5

4.0 - 6.2

3.8 - 6.2

3.8 - 5.6

4.8 - 6.0

2011

6.0 - 7.5

3.2 - 3.8

3.4 - 5.0

3.0 - 4.8

3.6 - 5.0

4.5 - 6.7

4.3 - 6.7

4.3 - 6.2

5.0 - 6.5

2012

6.0 - 8.0

3.8 - 4.8

4.0 - 5.5

3.5 - 5.5

4.0 - 5.5

5.0 - 7.5

5.0 - 7.0

4.5 - 6.5

6.0 - 9.0

4Q 2013

9.0 - 12.0

4.0 - 5.5

4.5 - 5.9

4.5 - 6.5

7.0 - 10.0

6.0 - 8.0

5.5 - 6.5

3Q 2013

8.0 - 11.0

4.0 - 5.5

4.5 - 5.5

4.5 - 6.0

6.0 - 9.0

6.0 - 8.0

5.5 - 6.5

2Q 2013

7.0 - 10.0

4.0 - 5.0

4.0 - 5.5

6.0 - 9.06.0 - 9.06.0 - 9.0

4.5 - 6.0

6.0 - 9.0

6.0 - 8.0

5.0 - 6.5

3.5 - 5.53.5 - 5.53.5 - 5.5

1Q 2013

6.0 - 8.0

3.8 - 4.8

4.0 - 5.5

3.5 - 5.5

4.0 - 5.8

5.0 - 8.0

5.0 - 7.0

4.5 - 6.5

6.0 - 9.0


Note: The above values for high-end segment typically include units of 2,000-4,000 sf.

Location

Central

South

Off-Central

East

North

2009

12.0 - 14.5

6.0 - 8.5

5.0 - 6.8

5.6 - 7.0

5.5 - 7.0

2010

13.5 - 17.5

6.0 - 9.5

5.0 - 7.0

6.5 - 7.5

5.5 - 7.0

2011

14.0 - 18.0

6.5 - 10.0

6.0 - 8.5

6.8 - 8.0

6.5 - 8.0

2012

18.0 - 28.0

6.5 - 10.0

7.0 - 9.0

6.5 - 9.0

6.5 - 8.2

3Q 2013

18.0 - 30.0

6.5 - 10.0

7.0 - 10.0

6.5 - 10.0

6.5 - 9.5

4Q 2013

18.0 - 30.0

6.75 - 10.25

8.0 - 11.0

6.5 - 10.0

7.0 - 9.5

2Q 2013

18.0 - 30.0

6.5 - 10.0

7.0 - 10.0

6.5 - 10.0

6.5 - 9.5

1Q 2013

18.0 - 30.0

6.5 - 10.0

7.0 - 10.0

6.5 - 10.0

6.5 - 9.5

Average Capital Values – High-end (INR’000/sf)

2008

14.0 - 18.0

7.0 - 9.0

6.5 - 7.5

6.5 - 9.0

6.0 - 8.0


The residential real estate market of Bengaluru

recorded new launches of over 13,800 units during

the last quarter of 2013. The quantum of launches in

4Q 2013, remained in tandem with the previous

quarters of this year. Around 57% of the launches

belonged to the mid-end category, followed by

affordable segment contributing around 22% to the

new launches in 4Q 2013. Sarjapur Road, Harlur

Road, Electronic City, etc. in Southern Bengaluru

continued to witness maximum number of launches

(58%) followed by locations in the East (mainly

Whitefield), which accounted for 30%. Connectivity

to major workplaces and presence of developed

support infrastructure continued to drive residential

real estate activity in these submarkets.

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

Skylark Ithaca (Phase-I)

Skylark Developers Whitefield 1,319 Apartment 1 BHK: 5922 BHK: 9993 BHK: 1,4724 BHK: 1,857

SJR Blue Waters SJR Developers Hosa Road 1,250 Apartment 1 BHK: 6502 BHK: 1,145 to 1,1703 BHK: 1,440 to 1,6804 BHK: 2,265

Smondo 4.0 Patel Realty Electronic City 1,012 Apartment 1 BHK: 641 to 6632 BHK: 9953 BHK: 1,240 to 1,510

Brigade Cosmopolis Brigade Group Whitefield 880 Apartment 2 BHK: 1,2503 BHK: 1,720 to 2,2604 BHK: 3,410

Shriram ChirpingWoods

Shriram Group Harlur Road 820 Apartment 1 BHK: 7502 BHK: 1,050 to 1,4003 BHK: 1,600

Monarch Aqua Monarch Properties KR Puram 593 Apartment 1 BHK: 8502 BHK: 1,0443 BHK: 1,5254 BHK: 2,284

Sumadhura Silver Ripples

Sumadhura Silver Ripples

Whitefield 475 Apartment 2 BHK: 1,285 to 1,3403 BHK: 1,585 to 2,150

Prabhavati Daffodils Prabhavati Developers

Off Sarjapur Road 445 Apartment 1 BHK: 7202 BHK: 9153 BHK: 1,075 to 1,200

Orchid Woods Goyal and Co. Hennur Road 392 Apartment 2 BHK: 1,1053 BHK: 1,390

Nitesh British Columbia

Nitesh Estates Kanakpura Road 388 Apartment 2 BHK: 1,005 to 1,0313 BHK: 1,335 to 1,604

Golden Panorama Golden Gate Properties

Kanakpura Road 363 Apartment 2 BHK: 1,210 to 1,2253 BHK: 1,725 to 1,7854 BHK: 3,360

Prestige Ivy Terraces Prestige Developers Outer Ring Road (Sarjapur-Marathahalli)

330 Apartment 2 BHK: 1,1953 BHK: 1,586 to 1,615

Adarsh Premia Adarsh Developers Banshankari 330 Apartment 3 BHK: 2,1004 BHK: 3,960

Purva Skydale Purvankara Harlur Road 314 Apartment 2 BHK: 1,250 to 1,3463 BHK: 1,650 to 1,850

Century Ethos Century Group Hebbal 308 Apartment 3 BHK: 2,800 to 3,1254 BHK: 4,235

Ajmera Stonepark Ajmera Developers Electronic City 280 Apartment 2 BHK: 956 to 1,2003 BHK: 1,550

Sterling Ascentia Sterling Developers Outer Ring Road (Sarjapur-Marathahalli)

280 Apartment 2 BHK: 1,5913 BHK: 1,885 to 2,015

Prestige Jade Pavillion

Prestige Developers Outer Ring Road (Sarjapur-Marathahalli)

272 Apartment 2 BHK: 1,3583 BHK: 1,937 to 2,3754 BHK: 2,524

11

12

Mahaveer Amaze Mahaveer Developers Whitefield 267 Apartment 2 BHK: 1,1283 BHK: 1,349

Bren Paddington Bren Developers Sarjapur Road 264 Apartment 2 BHK: 1,178 to 1,3493 BHK: 1,498 to 1,704

Saroj Symphony Saroj Group Whitefield 212 Apartment 2 BHK: 1,065 to 1,2003 BHK: 1,500 to 1,650

Concorde Epitome Concorde Group Electronic City 200 Apartment 2 BHK: 900 to 1,1003 BHK: 1,200 to 1,300

Purva Sunflower Purvankara Developers

Rajajinagar 200 Apartment 2 BHK: 1,216 to 1,4083 BHK: 1,613 to 1,795

Concorde Tech Turf Concorde Group Electronic City 168 Apartment 2 BHK: 8003 BHK: 1,200

Mahaveer Oleander Mahaveer Developers

Hosa Junction (Off Hosur Road)

164 Apartment 2 BHK: 1,118 to 1,1563 BHK: 1,522 to 1,616

Atlantis Liberty Square

Atlantis Builders Kanakpura Road 164 Apartment 2 BHK: 1,285 to 1,5753 BHK: 1,765 to 2,075

Salarpuria Clarinet Salarpuria Developers

Bannerghatta Road 161 Apartment 3 BHK: 1,898 to 2,066

Arge Helios Arge Realty Hennur Road 160 Apartment 2 BHK: 1,308 to 1,4663 BHK: 2,068 to 2,357

Zonasha Vista Zonasha Developers Hennur Road 160 Apartment 1 BHK: 7802 BHK: 1,0203 BHK: 1,350

Wind Fields Prajanpe Schemes Off Old Airport Road 154 Apartment 2 BHK: 1,1313 BHK: 1,382 to 1,4784 BHK: 1,740

Samruddhi North Square

Samruddhi Group Yelahanka 148 Apartment 2 BHK: 1,2203 BHK: 1,6754 BHK: 2,650

Concorde Wind Rush Concorde Group Electronic City 143 Apartment 2 BHK: 8733 BHK: 1,113 to 1,227

Shriram Chirping Woods

Shriram Group Harlur Road 138 Villas 3 BHK: 2,8504 BHK: 3,550

Radiant Elitaire Radiant Developers JP Nagar 133 Apartment 2 BHK: 1,150 to 1,2503 BHK: 1,330 to 1,660

Salarpuria Aspire Salarpuria Developers

Hennur Road 120 Apartment 3 BHK: 1,832 to 2,045

Another Sky Living Walls HRBR Layout 117 Apartment 3 BHK: 2,259 to 2,5464 BHK: 3,161

Pushpam Woods Pushpam Group Sarjapur Road 112 Villas 3 BHK: 2,259 to 2,5464 BHK: 3,161

JR Nexus JR Developers ChandapuraAnekal Road

108 Apartment 2 BHK: 1,050 to 1,0653 BHK: 1,285 to 1,300

Eternity Ecstasy Eternity Structures Begur Road 100 Apartment 1 BHK: 6652 BHK: 985 to 1,1903 BHK: 1,465

Sarvana Esplanade Sarvana Buildwell Yeshwantpur 80 Apartment 2 BHK: 1,120 to 1,2563 BHK: 1,380 to 1,792

Vineyard Chrystolite Vineyard Township Hennur Road 72 Apartment 2 BHK: 1,051 to 1,1823 BHK: 1,433 to 1,523

Nakshatra Celestia Nakshatra Developers

Yelahanka 69 Apartment 2 BHK: 1,1753 BHK: 1,500

Surya Shakti 80 Trees

Surya Shakti Developers

Off Sarjapur Road 68 Apartment 3 BHK: 1,477 to 2,0234 BHK: 2,600

Sipani Classic Sipani Properties Kormangala 54 Apartment 2 BHK: 1,165 to 1,2353 BHK: 1,370 to 1,455

Radiant Silver Oak Radiant Developers Begur Road 42 Villas 3 BHK: 2,143 to 2,600

Chaitanya Sharan Chaitanya Developers Whitefield 27 Villas 5 BHK: 7,830


13

Retail Sector

Most main streets witnessed a stable rental trend

in the last quarter of 2013. Commercial Street being

an exception, which recorded a q-o-q drop of 3% in

the main street rentals owing to paucity of optimum

sized floor plates. ‘Starbucks’ opened its flagship

store in Bengaluru (Kormangala) in 4Q 2013. Further,

prominent main streets like MG Road, Brigade Road,

Kormangala 80 Feet Road and Jayanagar 4th block

continued to witness increased enquires from

apparels, jewellery and footwear retailers.


The last quarter of 2013 registered a q-o-q rise of

27% in net absorption, which was recorded to be 1.5

msf. Majority (72%) of the net absorption took place

in Grade A properties, reflecting higher preference

for quality spaces amongst occupiers. Amidst this,

IT-ITeS sector continued to drive majority (80%) of

the transaction activity during this quarter. Almost

all the net absorption this quarter (98%) took place

in peripheral areas such as Outer Ring Road (31%),

Whitefield (31%) and Electronic City (36%),

primarily due to availability of quality spaces at

competitive rentals. The IT-ITeS sector dominated

the pre-commitment activity as well with a 76%

share in total pre-commitments of approximately 1.1

msf during 4Q 2013. The rental values remained

stable for all submarkets as the vacancy levels

witnessed a dip of 0.4 percentage points each for all

Grade and Grade A properties.

Capital values across select mid-end residential

submarkets like East, South-East, North and North-

West are anticipated to see an upward revision in the

next quarter. While proximity to workplaces and good

support infrastructure are expected to contribute to

the uptrend in East and South-East, the submarkets of

North and North-West may record appreciation due to

ongoing and proposed infrastructure initiatives.

Considering the office transaction spillovers from

the last quarter of 2013, the first quarter of 2014 is

expected to record significant leasing activity. Further,

as a result of the anticipated supply and pre-

commitments, Outer Ring Road is expected to

Outlook

continue being a major destination for office leasing

activity. For the next quarter, the rentals for all the

submarkets are likely to remain in similar ranges.

Most mall submarkets are expected to see stable

rentals in the next quarter. However, lower trading

densities in select locations like Cunningham Road

and Mysore Road might lead to a possible drop in

rentals. Similarly, most main streets are anticipated to

record stable rentals except Marathahalli Junction,

which might witness appreciation in rentals due to low

availability of quality retail spaces.


Capital values of under construction residential

projects in Southern and Eastern submarkets

witnessed a q-o-q appreciation in the range of 5-10%

and 4-8%, respectively during 4Q 2013. Healthy

demand from employees of the IT-ITeS sector, owing

to proximity of workplaces and presence of strong

social infrastructure led to northward movement of

capital values. Areas like Sarjapur Road, Harlur Road

in South, Whitefield in East, Hennur Road and

Thanisandara Road in North continued to witness

sizeable construction activity. Gopalan Atlantis

located in Whitefield and DSR Wood Winds located in

Sarjapur are select projects that are nearing

completion.

Market Overview

Chandigarh

Cautious buyer sentiment led to subdued

transaction activity in Chandigarh in the fourth

quarter of 2013. This led to capital values remaining

largely stable from the previous quarter. However, the

completion of more than 2,500 units in the fourth

quarter of 2013 in suburban areas like Panchkula,

Mullanpur and Technology Park led to a slight

appreciation in the capital values in the suburban

areas. Developers came up with attractive payment

plans and offered discounts during the festive season

to attract end-users and investors in under-

construction projects. The Tri-City did not witness any

new launches in the fourth quarter due to inventory

pile up in the under-construction projects.

The sluggish pace of leasing activity in the office

segment continued in the fourth quarter of 2013.

Manufacturing and engineering continued to be the

main demand drivers for commercial office space in

the Tri-City. Despite high vacancy levels and subdued

leasing activity, the rentals of Grade A office space

remained stable from the previous quarter.

The rental values in malls and main streets remained

stable during the fourth quarter from the previous

quarter. The absorption during the quarter was mainly

from the apparels and footwear retailers, with national

and international brands expanding their presence in

the Tri-City. Prominent main street locations of Sector

17, 26 and 35 continued to be favoured by brands looking

to expand their market presence.


Trends And Updates

Demand for ready residential properties remained

subdued across the Tri-City. During 4Q 2013, capital

values for high-end properties declined marginally in

Sectors 2-11 and Sector 28, on a q-o-q basis. However,

values in Panchkula remained stable and the values in

Manimajra increasing by nearly 9%. In the mid-

segment, the capital values saw marginal increase,

ranging from 3-6% in most locations.



14

Location

Chandigarh Sector: 2-11

Chandigarh Sector: 28

Panchkula

Manimajra

4Q 2012

160,000 - 180,000/sqyd

140,000 - 170,000/sqyd

110,000 - 145,000/sqyd

13,000/sf

1Q 2013

160,000 - 180,000/sqyd

140,000 - 170,000/sqyd

110,000 - 145,000/sqyd

13,000/sf

2Q 2013

160,000 - 180,000/sqyd

140,000 - 170,000/sqyd

110,000 - 145,000/sqyd

13,000/sf

4Q 2013

155,000 - 170,000/sqyd

140,000 - 160,000/sqyd

110,000 - 145,000/sqyd

14,000/sf

3Q 2013

160,000 - 180,000/sqyd

140,000 - 170,000/sqyd

110,000 - 145,000/sqyd

13,000/sf

Average Capital Values – High End (INR)


Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villa *sqyd: Square Yard

Mid-end Segment:

Mohali: Sectors - 114, 115, 127

Panchkula: Sector - 20

High-end Segment:

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

Key to Locations:

Location

Zirakpur

Mohali

Dera Bassi

Panchkula

4Q 2012

2,500 - 3,600

3,000 - 4,000

3,000 - 3,200

2,700 - 3,300

3Q 2013

2,500 - 3,600

3,000 - 4,000

3,000 - 3,200

2,700 - 3,300

4Q 2013

2,800 - 3,600

3,200 - 4,000

3,000 - 3,200

2,800 - 3,500

2Q 2013

2,500 - 3,600

3,000 - 4,000

3,000 - 3,200

2,700 - 3,300

1Q 2013

2,500 - 3,600

3,000 - 4,000

3,000 - 3,200

2,700 - 3,300

Average Capital Values – Mid Range (INR/sf )


Note: The above values for mid-segment apartments typically include units of 1,600-2,000 sf

Owing to inventory pile up and cautious buyer

sentiments, the Tri-City did not witness any new

launches in the fourth quarter of 2013. A few developers

extended the period of soft launch of their projects and

deferred the official launch by a few more months,

primarily due to low response from the buyers.


Many projects scheduled for completion in the first

quarter of 2014 have been deferred to later quarters of

the year, considering the low response from buyers for

existing projects. With the slow pace of construction,

only one project in the suburban location of Panchkula

is expected to be completed in the next quarter.


15


The rentals of office space in IT parks and SEZs

remained unchanged in the fourth quarter of 2013.

Despite quoting higher rental values in the fourth

quarter, transaction activity was witnessed at rental

rate prevailing in previous quarter. Rentals values

for office spaces in IT Parks and SEZs remained in

similar range of INR 45-55 per square feet per

month (psf per month) and that of commercial office

spaces at INR 70-80 psf per month in the fourth

quarter of 2013.

Demand remained stable in the retail sector with

brands like Adidas, Allen Solly, and Van Heusen to

name a few expanding their market presence in the

Tri-City. Despite steady demand, vacancy levels

remained high in malls across the city. Due to this the

rental values in malls maintained status quo at INR

Retail Sector

300 psf per month in the fourth quarter of 2013.

Main street locations witnessed demand from

Banking and F&B (Food & Beverages) sector with

brands like Pizza hut, Dominos and Sagar Ratna

increasing their footprints in the market.

In the residential sector, capital values are

expected to remain largely stable in Chandigarh in

the short term with possible upward price

movements in only suburban areas like Mullanpur,

Mohali, Zirakpur and Panchkula. However, with a

number of projects scheduled for completion in

2014, the capital values are expected to improve in

the second half of the year. Moreover, with the

government expediting the process of land

acquisition for Medi City and IT city, development of

infrastructure is also expected to provide necessary

boost to demand and drive the capital values

northwards.

The demand for office space is expected to

remain sluggish in the first quarter of 2014. More

Outlook

than 450,000 square feet (sf) of new office supply is

anticipated in 1Q 2014. In view of the subdued

demand, this would result in higher vacancy levels

and stable rental values in the Tri-City.

The demand for quality retail spaces is expected

to remain stable in Chandigarh, which is likely to

keep rentals stable in the next quarter. The first

quarter of 2014 is expected to see new mall supply of

nearly 1.1 million square feet (msf) in Mohali.

Although a number of retailers have pre-committed

to this supply, the addition of such huge supply

would affect overall vacancy levels and might

adversely affect the rentals in Mohali.

16

Trends And Updates


Many prominent projects by developers like

Adroit Urban Developers, Arihant Foundations,

Anitech Foundations and XS Real became available

for possession in locations such as Adyar, Velachery,

GST Road and Rajiv Gandhi Salai (RGS). It is

anticipated that nearly 5,000 residential units are

expected to have been completed during 4Q 2013, of

which 56% belong to the mid-end category. Inherent

demand for high-end properties in locations like

Boat Club, Kotturpuram and Kilpauk led to a 4-6%

increase in capital values, while in Adyar an increase

of 13% was noted. Capital values in the mid-end

category remained stable due to ample supply and

significant number of new launches.

Chennai

Market Overview

Chennai’s residential property market slowed

down in 4Q 2013 and witnessed a 38% q-o-q decline

in the number of new residential units launches.

Nearly 2,500 residential units were launched,

mainly in suburban and peripheral locations. Of the

total units launched, around 31% were in the Rajiv

Gandhi Salai micromarket. While mid-end category

accounted for 93% of the total units launched

during this quarter, it recorded a q-o-q decline of

38%. High-end residential units accounted for the

remaining 7% of new residential unit launches and

were primarily concentrated in East Coast Road

(ECR) and Nandambakkam. In comparison to the

previous quarter, launches in high-end category

increased by 100% during this quarter.

Chennai’s office property market witnessed a

slowdown as the overall (all Grades) leasing activity

during this quarter decreased by 67% on a q-o-q

basis and was noted at around 1.0 msf. Though the

leasing activity decreased from the previous

quarter, the overall net absorption for all grades

remained at par with last quarter and was registered

at 766,400 square feet (sf). A clear preference for

Grade A office spaces was evident in 4Q 2013, as

86% of the total leasing transactions and 92% of

the net absorption was registered for Grade A

assets. Only 30,000 sf of new office supply was

infused in this quarter, all of which belonged to

Grade A in CBD and Off-CBD micro-markets. The

overall vacancy rate in Chennai dipped by 0.2

percentage points and was noted at 16.1%.

During 4Q 2013, Chennai’s retail real estate

market witnessed 311,000 sf infusion of new mall

space in Velachery, and the new mall became

operational with approx. 84% occupancy. The

vacancy in the new mall coupled with some churn in

Chennai’s CBD resulted in 1.1 percentage points rise

in the city’s mall vacancy levels, which was noted at

6.5% during this period. Enquiries from apparels,

accessories and cosmetic brands remained strong

for select shopping malls in Chennai-CBD and

Chennai-South micromarkets.



17


During 4Q 2013, around 2,500 new residential

units were launched in Chennai, registering a q-o-q

decline of 38%. This included projects from

developers such as Urban Tree Infrastructure,

Anitech Foundations, Vijay Shanthi, StepStone

Promoters, etc. Of the units launched, mid-end

segment accounted for 93% of the new launches.


Note: The above values for mid segment typically include units of 1,000-2,000 sf

The time series have been adjusted to reflect the updated values

Location

Adyar

Average Capital Values – Mid Segment (INR ’000/sf)

Rajiv Gandhi

Salai (Perungudi)

Velachery

T. Nagar

Mylapore

Mogappair

Kilpauk

2009

4.5 - 6.5

2.5 - 2.8

3.5 - 4.0

4.0 - 6.5

NA

NA

4.5 - 6.0

2008

4.5 - 6.5

2.5 - 3.6

3.8 - 4.2

4.0 - 6.5

NA

NA

4.5 - 6.0

2010

6.0 - 8.5

3.5 - 4.5

3.5 - 5.0

7.5 - 10.5

NA

NA

6.0 - 8.0

2011

8.0 - 11.0

4.0 - 5.5

3.5 - 5.5

8.5 - 11.5

8.0 - 12.5

5.0 - 5.5

7.5 - 9.5

2012

9.0 - 13.0

5.0 - 6.3

4.5 - 6.5

8.5 - 14.0

10.0 - 15.0

5.0 - 6.5

9.0 - 12.0

10.0 - 14.0

5.0 - 6.3

6.0 - 8.0

10.0 - 16.0

12.0 - 17.0

5.0 - 7.5

9.0 - 12.0

3Q 2013

10.0 - 14.0

5.0 - 6.3

6.0 - 8.0

10.0 - 16.0

12.0 - 17.0

5.0 - 7.5

9.0 - 12.0

4Q 2013

10.0 - 14.0

5.0 - 6.3

6.0 - 8.0

10.0 - 16.0

12.0 - 17.0

5.0 - 7.5

9.0 - 12.0

2Q 2013

10.0 - 14.0

5.0 - 6.3

6.0 - 8.0

10.0 - 16.0

12.0 - 17.0

5.0 - 7.5

9.0 - 12.0

1Q 2013



The time series have been adjusted to reflect the updated values

*RA Puram also includes Alwarpet and Abhiramapuram

**Poes Garden also includes Venus Colony and Kasturi Rangan Road

Location 2008

18.0 - 24.0

13.0 - 15.0

NA

NA

5.5 - 10.0

14.5 - 20.0

13.0 - 16.0

6.0 - 9.0

4.0 - 8.0

Boat Club

R.A Puram*

Besant Nagar

Kotturpuram

Adyar

Poes Garden**

Nungambakkam

Anna Nagar

Kilpauk

2010

18.0 - 23.0

13.0 - 16.5

NA

NA

8.0 - 12.0

14.5 - 20.0

13.0 - 16.5

7.5 - 10.5

8.0 - 12.0

2009

18.0 - 20.0

13.0 - 15.0

NA

NA

5.5 - 9.5

14.5 - 18.0

13.0 - 16.0

6.0 - 9.0

4.0 - 8.0

2011

20.0 - 25.0

14.0 - 17.0

12.5 - 13.5

12.0 - 14.0

11.5 - 13.5

17.5 - 24.5

13.0 - 17.0

8.0 - 11.5

9.0 - 15.0

1Q 2013

23.0 - 30.0

17.0 - 21.0

13.5 - 15.0

14.0 - 18.5

13.0 - 15.0

20.5 - 28.0

14.0 - 25.0

12.0 - 17.0

12.0 - 15.0

2012

23.0 - 27.0

15.0 - 19.0

13.0 - 14.5

14.0 - 16.0

13.0 - 14.5

18.5 - 25.0

17.0 - 20.0

12.0 - 14.0

12.0 - 15.0

4Q 2013

23.0 - 33.0

17.0 - 23.0

13.5 - 15.0

14.0 - 20.0

14.0 - 17.5

20.5 - 28.0

14.0 - 25.0

12.0 - 17.0

12.0 - 16.0

3Q 2013

23.0 - 30.0

17.0 - 21.0

13.5 - 15.0

14.0 - 18.5

13.0 - 15.0

20.5 - 28.0

14.0 - 25.0

12.0 - 17.0

12.0 - 15.0

2Q 2013

23.0 - 30.0

17.0 - 21.0

13.5 - 15.0

14.0 - 18.5

13.0 - 15.0

20.5 - 28.0

14.0 - 25.0

12.0 - 17.0

12.0 - 15.0

Average Capital Values – High End (INR ‘000/sf)

18

19

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

Mahidhara Supreme .Phase – I

Mahidhara Projects Oragadam 400 Villas 2 BHK: 988

3 BHK: 1,508 to 2,531 Aashira – Phase I Malles Construction Perumbakkam 384 Apartments 1 BHK: 547 to 611

2 BHK: 892 to 1,035

3 BHK: 1,202 to 1,352 Love Vijay Shanthi Builders Mambakkam,

Sriperumbudur377 Apartments 2 BHK: 973 to 1,293

3 BHK: 1,276 to 2,429 Blue Bells Shri Janani Homes (P) Ltd. Padur 288 Apartments 1 BHK: 600 to 630

2 BHK: 829 to 1,100

3 BHK: 1,200 to 1,600 Urbantree Oxygen – Phase I

Urban Tree Infrastructure Perumbakkam 284 Apartments 1 BHK: 466

2 BHK: 851 to 1,121

3 BHK: 1,390 to 1,434 Meadow Ville (Phase II B)

Sare Homes Kolathur 188 Villas 3 BHK: 2,308

Rock Ville Raba Promoters (P) Ltd. Kundrathur 157 Apartments 2 BHK: 930 to 980

2 BHK: 1,100 to 1,110 Eden Gardens Evocon Private Limited Tambaram 148 Apartments 2 BHK: 869 to 1,363

3 BHK: 1,256 to 1,395 Tiara Arihant Foundations Nandambakkam 96 Apartments 2 BHK: 1,005

3 BHK: 1,270 to 2,000 Myans Mayances Construction &

EngineeringEast Coast Road 73 Villas 3 BHK: 3,121 to 4,896

4 BHK: 5,299 to 5,264 Arihant Villa Viviana –II

Arihant Foundations Maraimalai Nagar 42 Villas 4 BHK: 3,804

Color Castle Color Homes Perumbakkam 40 Apartments 2 BHK: 774 to 1,063 Peru's StepStone Promoters Perumbakkam 36 Apartments 2 BHK: 778 to 1,209

3 BHK: 1,121 to 1,257 Tranquility Kay Arr Builders Thoraipakkam 20 Apartments 2 BHK: 980 to 1,171

3 BHK: 1,602 to 1,681 Iha Atikramya Developers Tambaram 8 Apartments 3 BHK: 1,271 to 1,274 Casa Abri VJS Associates Thoraipakkam 8 Apartments 2 BHK: 895 to 1,010

3 BHK: 1,010 to 1,310 Anitech Sunflower Anitech Foundations Maraimalai Nagar 5 Apartments 2 BHK: 1,036

3 BHK: 1,356


Due to subdued market sentiments and rising input

costs, construction activity progressed at a slow pace

during this quarter in most micro-markets.

Construction delays have deferred completion dates

for many projects in locations like RGS, Mogappair, GST

Road, etc. Though the demand for residential


properties has been slow, end-users are willing to pay an

additional price for projects nearing completion stages

or ready for handover as it helps them to mitigate the

risks associated with newly launched, under-

construction projects that typically are considered risky

propositions due to uncertain time lines.


Of all the locations, Peripheral-RGS and Suburban-

Guindy accounted for nearly 44% and 23%,

respectively of the overall net absorption. The IT-ITeS

sector accounted for 60% of the total gross absorption,

followed by healthcare and engineering at 7% and 5%

respectively. The city's weighted average rental showed

a marginal uptick of 1.5%, mainly due to an 11% increase

in weighted average rentals for Suburban-Perungudi

Taramani, owing to availability of good quality Grade A

spaces and higher demand for this micro-market. Only

30,000 sf commercial space, all belonging to Grade A,

was infused in the market in CBD and Off-CBD locations.

Outlook

As per current estimates, nearly 1,100 residential

units are currently in the soft launch stage, of which

300 belong to the high-end segment. These units are

expected to be launched in Nungambakkam,

Kotturpuram, R.A. Puram, Mylapore and Rajiv

Gandhi Salai in the first half of 2014. Around 2,800

residential units are expected to be completed

during 1Q 2014. However, despite the increasing

input costs for developers, the sizeable new supply is

likely to prevent rental and capital values from rising

drastically, and they are expected to remain stable in

the next quarter.

It is anticipated that during 1Q 2014, the net

absorption levels for office space will be much higher

than that of 4Q 2013 as a number of enquiries are

tending towards closure. It is expected that a total

new supply of 712,000 sf will be infused in the

market during 1Q 2014; 97% of which belongs to

Grade A. Less new supply coupled with high

enquiries and dipping vacancy levels mainly for

Suburban-Guindy and Suburban-Perungudi

Taramani may create an upward pressure on rentals

for these micro-markets.

Dearth of quality retail spaces along with healthy

demand may lead to an increase in rentals during the

next quarter for Usman Road-North and Pondy

Bazar. Mall rentals are expected to remain stable

except for Chennai-South where higher demand

from apparels, accessories and cosmetic brands may

push the rentals upwards. No new mall supply is

likely to be infused in Chennai during 1Q 2014.

Retail Sector

This quarter recorded stable rentals in most main

streets except Nungambakkam High Road where

rentals increased by 7.1% on a q-o-q basis, due to

high demand and lack of new supply. Enquiries by

electronics, apparels and footwear retailers

remained high, mainly for Pondy Bazar and

Nungambakkam High Road.

20

Market Overview

Hyderabad

In 4Q 2013, the residential property market

witnessed the launch of approximately 750 new

units in various micromarkets across mid and high-

end categories, registering a 61% decline from the

previous quarter. Almost 78% of these projects

belonged to the mid-end segment and were

concentrated in Madhapur, Gachibowli, Kukatpally,

Miyapur and Nizampet micro-markets. High-end

category accounted for the remaining 22% of the

new launches. Despite the ongoing political

uncertainties related to the bifurcation of the State,

almost all micromarkets witnessed a stable trend in

the capital and rental values, across categories. Only

Madhapur, Gachibowli and Kukatpally witnessed a

3% q-o-q capital value appreciation in the mid-end

segment, driven by their proximity to the IT and

financial hub of the city.

The office real estate market of Hyderabad saw

influx of nearly 2.24 msf in the fourth quarter of

2013. Nearly 41% of the total supply was in SEZs

situated in Madhapur. City-level vacancy was

recorded at 19.8% at the end of 4Q 2013, rising by 2.0

percentage on a q-o-q basis, primarily due to

considerable new supply across the city. The leasing

activity and net absorption for 4Q 2013 recorded a q-

o-q increase of 71% and 42%.

A mall admeasuring 425,000 sf became

operational in Kukatpally with approximately 70%

occupancy. Attapur, Nagole and Kompally witnessed

increased enquiry from Food and Beverages (F&B),

hypermarkets, multiplexes and apparel retailers.


Trends And Updates


The fourth quarter of 2013 witnessed moderate

enquiries for ready residential properties, especially

in the north-western quadrant of the city. Locations

such as Madhapur and Gachibowli witnessed

marginal q-o-q appreciation of 3% in capital values

of mid-end residential properties, due to the demand

driven by the employees from the IT-ITeS sector. The

capital and rental values in the high-end segment

remained stable across all locations, due to

moderate demand in the wake of the current

political uncertainty. Projects catering to mid-end

segment in Bachupally and Madhapur totalling

approximately 900 units and having an average unit

size in the range of 1,500-2,000 sf were completed

during this quarter.

21




Banjara Hills

Jubilee Hills

Himayatnagar

West & East Marredpally

Begumpet, Somajiguda

Madhapur, Gachibowli

Kukatpally

Miyapur, Nizampet

Average Capital Values - Mid Segment (INR ‘000/sf)

Location 2009

2.4 - 2.9

1.8 - 2.5

3.6 - 4.2

3.5 - 4.0

2.7 - 3.0

2.5 - 2.8

2.6 - 3.1

2.5 - 3.1

2010

2.7 - 3.2

1.8 - 2.5

3.6 - 4.5

3.7 - 4.0

2.7 - 3.5

2.7 - 3.0

2.8 - 3.5

2.6 - 3.4

2011

2.9 - 3.5

2.4 - 3.0

3.8 - 4.6

4.0 - 4.2

2.7 - 3.7

2.8 - 3.2

2.9 - 3.6

2.8 - 3.5

2012

2.9 - 3.6

2.2 - 3.4

3.8 - 4.8

4.0 - 4.2

2.8 - 3.6

2.7 - 3.2

2.8 - 3.6

3.0 - 3.8

2.9 - 3.6

2.3 - 3.4

3.8 - 4.8

3.8 - 4.4

2.8 - 3.6

2.7 - 3.2

2.8 - 3.7

3.0 - 3.9

Q1 2013 Q4 2013

3.1 - 4.0

2.7 - 3.4

4.0 - 5.0

3.8 - 4.4

3.0 - 3.8

3.0 - 3.5

3.0 - 4.0

3.5 - 4.2

Q2 2013

2.9 - 4.0

2.7 - 3.4

4.0 - 5.0

3.8 - 4.4

3.0 - 3.8

3.0 - 3.5

3.0 - 4.0

3.5 - 4.0

Q3 2013

2.9 - 4.0

2.7 - 3.4

4.0 - 5.0

3.8 - 4.4

3.0 - 3.8

3.0 - 3.5

3.0 - 4.0

3.5 - 4.2


Note: The above values for high-end typically include units of 1,600-4,000 sf

* Range has been increased to account for some units quoting higher capital values in the secondary market. However,

no capital appreciation has occurred in these locations.


Banjara Hills*

Jubilee Hills *

Himayatnagar

West & East Marredpally

Begumpet, Somajiguda

Madhapur, Gachibowli

Kukatpally

Miyapur, Nizampet

Location 2009

3.3 - 4.0

2.6 - 3.3

5.8 - 6.5

5.5 - 6.3

3.3 - 4.0

3.3 - 3.8

3.9 - 4.5

3.5 - 4.3

2010

3.5 - 4.5

2.7 - 3.4

6.0 - 7.2

6.0 - 7.0

3.7 - 4.0

3.5 - 4.0

4.1 - 4.5

3.8 - 4.9

2011

3.8 - 5.1

2.8 - 3.5

6.4 - 7.5

6.2 - 7.2

3.7 - 4.2

3.6 - 4.3

4.3 - 4.8

3.9 - 5.3

3.8 - 5.1

2.9 - 3.5

6.5 - 7.5

6.1 - 7.2

3.6 - 4.2

3.6 - 4.3

4.1 - 4.9

4.1 - 5.3

2012

3.8 - 5.1

2.9 - 3.5

6.5 - 7.5

6.1 - 7.2

3.6 - 4.2

3.6 - 4.3

4.3 - 4.7

4.1 - 5.3

Q2 2013Q1 2013

4.0 - 6.0

2.9 - 3.5

7.0 - 8.5

6.5 - 8.5

4.0 - 5.5

4.0 - 5.5

4.5 - 5.0

4.5 - 6.0

Q3 2013

4.0 - 6.0

2.9 - 3.5

7.0 - 8.5

6.5 - 8.5

4.0 - 5.5

4.0 - 5.5

4.5 - 5.5

4.5 - 6.0

Q4 2013

4.0 - 6.0

2.9 - 3.5

7.0 - 9.5

6.5 - 9.5

4.0 - 5.5

4.0 - 5.5

4.5 - 5.5

4.5 - 6.0


In Hyderabad, nearly 750 new residential units

were launched in Madhapur, Gachibowli, Miyapur

and Nizampet micromarkets. The new launches in

4Q 2013 registered a q-o-q decline of 61%. Around

78% of these projects catered to mid-end segment

and the remaining 22% were in the high-end

segment. However, unlike 3Q 2013, there were no

new units launched in the affordable category

during this quarter. Projects launched were mainly in

2, 3 and 4 BHK configurations with unit sizes ranging

1,200-1,700 sf and capital value range of INR 2,500-

3,500 per sf for mid-end and INR 6,000-6,500 per sf

for the high-end segment. Nearly 85% of these units

were apartment, while villas contributed the

remaining 15% units. Approximately, 1,500 units are

in pre-launch stages in locations such as Gachibowli,

Kismatpur, Kukatpally and Bachupally.

22


The fourth quarter of 2013 continued to witness

robust construction activity in the western locations

of Madhapur, Gachibowli, Miyapur and Nizampet, with

developers constructing more than 10,000 units in

various residential projects. Demand continues to

remain stable due to the current political scenario.

Select under construction projects in prominent

residential locations such as Madhapur, Gachibowli

and Kukatpally witnessed a q-o-q price appreciation of

3-5%, attributed to the locations’ proximity to the

major commercial office locations.


Pushpak Abhay Infrastructure Nizampet 330

Apartment 2 BHK: 1,205

3 BHK: 1,205 to 1,705

Paramount Height Aditya Construction Company

Gachibowli 126 Apartment 3 BHK: 1,665 to 2,295

Reganti DSR Buildings & Developers

Madhapur 90 Apartment 4 BHK: 3,033 to 3,333

Ashvita Mahindra Life Space Developers

Kukatpally 85 Apartment 2 BHK: 1,218 to 1,261

3 BHK: 1,567 to 1,947

4 BHK: 2,018 to 2,082

Mantri Euphoria Mantri Developers Pvt. Ltd Manikonda 75 Villas 3,4 BHK: 3,055 to 5,170

Sark One Extension Sark Projects Mokhila 38 Villas 4BHK : 3,600


23

In 4Q 2013, Hyderabad's office market witnessed

a leasing activity of approximately 1.47 msf,

registering a 71% q-o-q increase, majority of it

pertaining to pre-commitments of 2012 and 2013.

The city witnessed an influx of approximately 2.2

msf of office space, out of which 43% belonged to

Grade A category. The entire Grade A supply was

concentrated in suburban micro-market of


Madhapur and comprised of SEZ developments. The

supply influx pushed up the city vacancy levels by 2

percentage points and was noted at 19.8%. The

vacancy level for Grade A stock witnessed a hike of

1.4 percentage points and was recorded at 14.1%.

Around 62% of the overall transactions witnessed in

4Q 2013 were in the IT-ITeS sector. Rentals remained

more or less stable across micro-markets.

A new mall in Kukatpally admeasuring 425,000

sf became operational in 4Q 2013. The mall supply

infusion has pushed up the overall mall vacancy of

the city by 6.8 percentage points to 8.2%. Malls in

Banjara Hills and Madhapur witnessed a surge in

enquiries from apparels and International F&B

brands. Prominent main streets like Banjara Hills

Road No.2, Jubilee Hills Road No.36, Himayatnagar

Retail Sector

and A.S. Rao Nagar witnessed enquiries from

electronics, footwear and apparels retailers. Attapur,

Nagole, Kompally, Uppal and LB Nagar are some of

the emerging organized retail precincts that have

experienced healthy enquiries from various retailers

operating in categories like hyper-markets, F&B,

multiplexes, apparels and electronics.

The residential market is expected to witness

moderate demand and stable rentals in the next 3-6

months due to cautious approach adopted by end-

users. However, select micromarkets like Madhapur,

Gachibowli, Kukatpally and Miyapur are likely to

witness a marginal capital value appreciation in mid-

end segment, primarily due to demand stemming

from employees of the IT-ITeS offices and financial

district of the city that is in proximity to these

micromarkets. The north-west corner of the city is

expected to witness robust launches in the next

quarter with approximately 1,500 units already in

the pre-launch stage.

The commercial office market is expected to

witness an influx of 3.4 msf of office space with 76%

Outlook

of it belonging to Grade A category. The leasing

activity is anticipated to remain moderate in the next

3-6 months. Healthy supply in the next quarter is

expected to keep the rentals under pressure,

especially in Gachibowli, where the vacancy is

already high.

The city is likely to witness supply addition of

200,000 sf of mall space (at Attapur) in 1Q 2014.

However, moderate demand and supply situation will

keep the rentals under check. Select retailers

operating in F&B, furniture and apparels categories

are anticipated to enter Hyderabad’s retail market in

the near period.

24

Market Overview

Jaipur

The residential sector in Jaipur witnessed fervent

transaction activity in the fourth quarter of 2013.

Capital values in the central areas of C-Scheme and

Civil Lines increased by 8-10% compared to the third

quarter of 2013. However, capital values in Malviya

Nagar increased nearly by 10% in 4Q 2013.

Peripheral areas of the city like Ajmer Road, Sirsi

Road, Jagatpura and Mansarovar witnessed

increase in capital values ranging from 4-6% over

the previous quarter. New launches in the city

continued to be mainly in the suburban and

peripheral areas such as Malviya Nagar, Jagatpura

and Ajmer Road.

Jaipur witnessed new office space supply of

nearly 200,000 square feet (sf) in the fourth quarter

of 2013. The demand was mainly driven by the BFSI

(Banking, Financial Services and Insurance) and

Logistics sectors. A few occupiers shifted from the

central area of MI Road and C-Scheme to secondary

business districts such as Malviya Nagar,

considering ease of accessibility and better quality

office facilities. The rental values for office spaces

remained stable over the quarter across the city.

The city witnessed new supply of nearly 450,000

sf of mall space in the fourth quarter of 2013.

Prominent main street locations of MI Road, Tonk

Road, Malviya Nagar and Vaishali Nagar witnessed

interest from a number of brands that expanded

their market presence in Jaipur. Rental values in

main streets remained stable over the last quarter.

However, with the infusion of new supply in malls at

higher rental values the mall rents increased by 3-

5% on a quarterly basis.

Trends And Updates


Demand for ready residential property in

locations such as C-scheme and Civil Lines was

buoyant in the fourth quarter of 2013. Capital values

in the high-end segment increased by 8-10% q-o-q

and rental values increased by 6-7% in the same

period. Mid-segment also witnessed healthy

increase in capital values in the range of 4-6% from

the previous quarter, with a rise in rental values as

well. Malviya Nagar, which is located strategically

between the airport and the central locations such

as MI Road, continued attracting end-users and

investors with capital values increasing by nearly

10% in the last quarter of 2013.



25


Jaipur witnessed new supply mainly in the

suburban and peripheral areas such as Ajmer Road,

Sirsi Road, Vaishali Nagar and Mansarovar with

capital values being in the range of INR 2,600-3,200

per sf. A few small projects were launched in the

central areas near Civil Lines as well. These were

mainly low rise buildings with capital values quoting

in the range of INR 6,500-7,500 per sf. Developers

offered discounts during the festive season to

attract end-users and investors alike.


Along with ongoing under construction activity in

many projects, Jaipur also witnessed nearly 3,000

unit completions in the fourth quarter of 2013.

Majority of these units were mainly on Tonk Road

with the remaining spread over other peripheral

areas such as Ajmer Road, Vaishali Nagar, Sikar Road

and Jagatpura. Most of these units catered to the

mid and affordable segment.


The rentals of office spaces in IT parks and SEZs

remained unchanged in the fourth quarter of 2013.

Demand for quality office space and lack of new supply

led to occupiers leasing spaces in non-CBD

micromarkets such as Malviya Nagar, Tonk Road and

Vaishali Nagar. The rental values in the Central Business

District (CBD) comprising of micromarkets such as MI

Road and C-Scheme remained stagnant at INR 65 per

square feet per month (psf per month) and that for non-

CBD micromarkets at INR 35-50 psf per month.

26


Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villas

*sqyd: Square Yard


Location

C- Scheme

Bapu Nagar

Civil Lines

Malviya Nagar

Q3 2013

7,000 - 9,000 /sf

6,500 - 7,500 /sf

80,000 - 95,000 /sqyd*

70,000 - 80,000 /sqyd

Q4 2013

7,500 - 10,000 /sf

7,000 - 8,000 /sf

80,000 - 100,000 /sqyd

75,000 - 90,000 /sqyd



Note: The above values for mid-segment apartments typically include units of 1,600-2,000 sf, both apartments and villas

*sqyd: Square Yard


Location

Malviya Nagar

Vaishali Nagar

Mansarovar

Jagatpura

Q3 2013

55,000 - 65,000 /sqyd

2,700 - 3,000 /sf

2,700 - 3,000 /sf

2,650 - 2,900 /sf

Q4 2013

60,000 - 70,000 /sqyd

2,700 - 3,100 /sf

2,800 - 3,200 /sf

2,800 - 3,000 /sf

Average Capital Values – Mid Segment (INR ‘000/sf)

With infusion of new supply at higher rental

values than prevailing average rents, the mall rents

in Jaipur increased by 3-5% in the fourth quarter of

2013. National and International retailers like Zara,

Shoppers Stop, Allen Solly, etc. continued to

establish and expand their presence in the city

Retail Sector

across prominent malls such as Gaurav Tower,

Crystal Palm, MGF Metropolitan and Triton. The main

streets witnessed Food & Beverages (F&B) and

apparels brands such as Mainland China and Lilliput

respectively lease spaces during the quarter.

In the residential sector, capital values are

expected to continue their upward trend. The end-

user demand for projects in central locations and

investor appetite for units in the peripheral locations

is likely to remain strong in the next quarter. More

than 1,000 units are scheduled for completion in the

first quarter of 2014 in suburban areas such as

Mansarovar and Sirsi Road. Further enhancement of

social infrastructure in these areas will improve

liveability, leading to appreciation in capital values.

Nearly 100,000 sf of new office space is

scheduled for completion in the first quarter of 2014.

With new office buildings mainly in Tonk Road,

Malviya Nagar and Vaishali Nagar offering better

Outlook

facilities, lower rentals and no new supply in the

central area of Jaipur, occupiers will continue to

move to the non-CBD micromarkets. With stable

demand, rental values are expected to remain

constant in the next quarter.

Demand for quality retail spaces is expected to

remain healthy, especially in prominent main street

location of MI Road and in malls such as MGF

Metropolitan and Gaurav Tower. New mall supply of

approximately 220,000 sf is scheduled for

completion in the first quarter of 2014. Rental values

for both malls and main street locations are likely to

remain stable over the next quarter.

27

Market Overview

Kolkata

In 4Q 2013, Kolkata's residential real estate sector

witnessed a slight upward momentum with total units

launched increasing by 6% over the preceding

quarter. Around 1,930 units were launched during the

quarter. Capital and rental values remained stable

during the quarter across micromarkets in both mid

and high-end segments, primarily due to slow pace of

transactions.

During 4Q 2013, the commercial office sector

witnessed total supply of 620,000 sf, all of which was

Grade A and almost three times the supply in the

previous quarter. Total net absorption was recorded at

over 216,000 sf, which increased by 21% over the

previous quarter. Overall vacancy level inched up by 1.1

percentage points and touched 24.2% due to

significant new supply influx and low absorption.

Weighted average rentals saw a marginal q-o-q

decline of 0.1-0.7% across submarkets.

Retail sector witnessed healthy demand from

apparels, jewellery and accessories segment during

the quarter wherein malls attracted more demand

than the main streets. The quarter witnessed new

mall supply of around 438,000 sf in a mall that has

dedicated zones for luxury brands. Overall vacancy

level in malls dropped to 3.9% from 4.3% reported in

the previous quarter, owing to healthy leasing activity

and new malls becoming operational with more than

95% occupancy levels. Rentals remained stable

during the quarter across main streets and malls

Trends And Updates


During 4Q 2013, around 2,270 units were

completed in various projects. Nearly 50% of the

completed projects were concentrated in North-east

submarket. Around 45% of the total completed units

catered to the high-end segment. Some of the

prominent projects that were completed during the

third quarter include DLF New Town Heights in

North-east submarket and Tirumani in South-

Central submarket. Capital values and rentals values

in ready properties remained stable during the

quarter across submarkets in mid and high-end

segments owing to slow pace of transactions.



28

High End Segment:

South: Southern Avenue, Hindustan Park, Triangular

Park, Lake Terrace etc.

South Central: Ballygunge, Queens Park, Rainy Park,

Gurusaday Road, Ballyguange Circular Road, Dover Lane

etc.

South-East: EM Bypass - Science City, Christopher Road,

Pancha Sayar etc.

South-West: Alipore Park Road, Ashoka Road, Burdwan

Road, Belvedere Road, etc.

Central: Park Street, Camac Street, Shakespeare Sarani,

Minto Park, Elgin Road, Lee Road, Loudon Street, Rowdon

Street, etc.

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 etc.

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

North: Jessore Road, Ultadanga, Shyambazar, Bagbazar,

Girish Park, Manicktala, Dum Dum, etc.

Key to Locations:



*The values for North-East micro market have been revised due to increased market coverage


Location

South

South - Central

South - East

North - East

North

2009

2.7 - 3.9

4.2 - 5.3

2.4 - 2.8

1.9 - 2.2

1.8 - 3.4

2010

3.2 - 4.5

4.5 - 6.0

2.5 - 3.2

2.2 - 2.7

2.2 - 4.7

2011

3.8 - 5.5

5.5 - 8.0

2.8 - 4.5

2.4 - 3.0

2.8 - 5.2

2012

3.8 - 5.5

5.5 - 8.0

2.8 - 4.5

2.4 - 3.5

2.8 - 5.2

1Q 2013

3.8 - 5.5

5.5 - 8.0

2.8 - 4.5

2.5 - 3.7

2.8 - 5.2

4Q 2013

3.8 - 6.5

5.8 - 8.8

2.9 - 5.0

2.7 - 4.0

3.0 - 5.8

3Q 2013

3.8 - 6.5

5.8 - 8.8

2.9 - 5.0

2.7 - 4.0

3.0 - 5.8

2Q 2013

3.8 - 6.0

5.8 - 8.8

2.9 - 5.0

2.7 - 4.0

3.0 - 5.8

29



*The values for Central, East and North-East micro markets have been revised due to increased market coverage.


East

North - East

Location

South

South - Central

South - East

South - West

Central

4.0 - 5.2

3.0 - 4.0

2009

4.8 - 5.9

8.5 - 9.6

4.5 - 5.7

8.6 - 9.8

7.2 - 10.0

4.5 - 6.0

3.5 - 5.0

2011

6.3 - 8.5

10.0 - 18.0

5.8 - 9.2

10.0 - 15.0

9.0 - 15.0

4.5 - 6.8

3.8 - 5.7

2012

7.0 - 12.0

10.0 - 18.0

5.8 - 9.5

10.0 - 15.0

10.0 - 17.0

4.7 - 7.2

4.0 - 6.0

1Q 2013

7.5 - 12.0

10.0 - 18.0

5.8 - 9.5

10.0 - 15.0

10.5 - 17.5

5.0 - 7.7

4.2 - 6.5

2Q 2013

7.5 - 13.0

11.0 - 18.5

6.0 - 10.5

11.0 - 16.0

11.0 - 18.5

5.0 - 7.7

4.2 - 6.5

4Q 2013

7.5 - 13.0

12.5 - 18.5

6.0 - 10.5

12.0 - 17.0

12.0 - 19.5

5.0 - 7.7

4.2 - 6.5

3Q 2013

7.5 - 13.0

12.5 - 18.5

6.0 - 10.5

12.0 - 17.0

12.0 - 19.5

High End Segment:

South: Southern Avenue, Hindustan Park, Triangular

Park, Lake Terrace etc.

South Central: Ballygunge, Queens Park, Rainy Park,

Gurusaday Road, Ballyguange Circular Road, Dover Lane

etc.

South-East: EM Bypass - Science City, Christopher Road,

Pancha Sayar etc.

South-West: Alipore Park Road, Ashoka Road, Burdwan

Road, Belvedere Road, etc.

Central: Park Street, Camac Street, Shakespeare Sarani,

Minto Park, Elgin Road, Lee Road, Loudon Street, Rowdon

Street, etc.

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 etc.

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

North: Jessore Road, Ultadanga, Shyambazar, Bagbazar,

Girish Park, Manicktala, Dum Dum, etc.

Key to Locations:



*The values for North-East micro market have been revised due to increased market coverage




*The values for Central, East and North-East micro markets have been revised due to increased market coverage.


Location

4.0 - 5.5

3.2 - 4.5

2010

5.3 - 6.8

9.5 - 13.0

4.5 - 8.0

8.9 - 13.0

8.0 - 12.5

2010

During 4Q 2013, around 1,930 units were launched

in new projects, an increase of about 6% over the

previous quarter. Mid-end segment continued to

witness majority of the launches with 76% share,

followed by high-end segment with 21% share in the

total units launched. The high-end and luxury

segments witnessed significant drop of 30% and 80%

respectively in total units launched over the previous

quarter, as developers continued to focus more on the

mid-end segment that witnessed 46% q-o-q increase

in total units launched. The North-east submarket

contributed the most with 62% share in total units


launched as the submarket reported almost seven

times q-o-q increase in new unit launches. Peripheral

locations such as Garia, Narendrapur and Sonarpur in

South Kolkata, which used to be major contributors,

have witnessed a significant q-o-q drop of 90% in new

launches, owing to delay in project approvals. The

overall sales activity in new project launches

remained slow, as buyers refrained from making any

new investments on expectations of a possible price

correction. However, select projects in Salt Lake

garnered huge response from buyers due to its

development as an IT hub.

Ideal Aquaview

Ideal Group

Maheshbathan, New town

416 Apartments

2 BHK: 1,080 to 1,090

3 BHK: 1,475 to 1,510

4 BHK: 1,950

Kshitij

Jessore Road Construction LLP / Prudent Infra

Jessore Road

180 Apartments

3 BHK: 1,800

4 BHK: 2,500

Magnolia Prestige

Magnolia Infrastructure

Rajarhat 176

Apartments

2 BHK: 867 to 967

3 BHK: 1,174 to 1,274

Duplex Natura

Greentech IT City Pvt. Ltd

Vedic Village, Rajarhat

176 Apartments

4 BHK: 2124

Duplex: 2,127 to 2,351

Sunland Residency

Earth Work Nirman Pvt. Ltd. Pinion Developers

Rajarhat

142 Apartments

2 BHK: 968 to 1,050

3 BHK: 1,455 to 1,482

4 BHK: 1,958

Terrace Heights

GreenTech IT City & Vedic Realty

Rajarhat

128 Apartments

3 BHK: 1,835

Ashwa

Orbit Group

Hussain Shah Road, Near Alipore

108 Apartments

3 BHK: 1,400 to 1,600

4 BHK: 1,900 to 2,250

Merlin Legacy

Merlin Group

Off CIT Road 102

Apartments

2 BHK: 941

3 BHK: 1,600

Cloud 9

PS Group/ Srijan/ Signum

Bhukailash Road, Off Alipore

72 Apartments

4 BHK: 2,200 to 2,800

Ramsnehi Unimark Tower

Unimark Group

Maniktala

67 Apartments

4 BHK: 2,751 to 4,044

Taal Chaya

Pasari Group

New Town 60

Apartments

3 BHK

Astor Park

Eden Group

Pancha Sayar 60

Apartments

2 BHK: 950 to 1,275

3 BHK: 1,375

Greentech City Boat Homes


Shikharpur, Rajarhat

57 Independent Floors

3 BHK: 2,600

Exotica Heights

Adya Group

Mahamayatala, Garia 46

Apartments

3 BHK: 1,034 to 1,663

Greentech City Golf Grove Villas


Shikharpur, Rajarhat

43 Villas

4 BHK: 3,266 to 3,954

5 BHK: 3,981 to 5,162

6 BHK: 6,091

Akshara Vilaas

Akshara Group

New Alipore 35

Apartments

3 BHK: 1,692 to 2,090

4 BHK: 2,916 to 3,226

Royal Villa

Martin Infraprojects

SK Deb Road, Lake Town

30 Apartments

3 BHK: 1,200 to 1,492

Habitat

Prudent Infrarealty

Christopher Road 21

Apartments

2 BHK: 900 to 1,043

3 BHK: 1,600

Bellezza

Vinayak Group

Garia 18 Apartments

3 BHK: 1,555 to 1,575



30


In 4Q 2013, capital values remained stable in both

mid and high-end segments across most submarkets,

primarily due to subdued sales activity in the primary

as well as secondary markets. Developers have been

offering cash discounts and freebies to lure home

buyers and push up sales during the festive season.

Around 3,800 units in various projects are expected

to be completed in 1Q 2014; more than half of these are

concentrated in North-east submarket. Some of the

prominent projects that are nearing completion

include Sri Avani in Ballygunge and Unitech Cascades

in New Town.


In 4Q 2013, the commercial office sector witnessed

an uptick both in supply as well as demand. The

quarter witnessed total supply influx of 620,000 sf, all

of which was Grade A and almost thrice that of the

previous quarter. The new supply was concentrated in

peripheral submarkets of Salt Lake and Rajarhat,

contributing 56% and 44%, respectively. Total net

absorption was noted at over 216,000 sf, with almost

97% in Grade A developments. The net absorption

was higher by about 21% over the previous quarter

primarily due to large transaction from IT-ITeS and

engineering and construction (E&C) sectors that

contributed 52% and 33%, respectively to the total

net absorption. Peripheral submarkets of Salt Lake

and Rajarhat continued to have majority share in the

total net absorption with 72% and 14% share,

respectively. In 4Q 2013, overall vacancy level

witnessed an increase of 1.1 percentage points over

the previous quarter and was noted at 24.2%, owing

to new supply influx. Weighted average rentals remain

in similar range as those of the preceding quarter with

minor drop of 0.1-0.7% across submarkets.

The fourth quarter of 2013 witnessed healthy

demand in both main streets and malls. Retailers from

apparel, accessories, jewellery and electronics segment

were the most active and leased out spaces in various

parts of the city. The total mall stock in the city increased

by 440,000 sf, as a mall became operational in the

South Central location during this quarter. The mall has

dedicated zones for luxury and premium lifestyle

brands and is the first of its kind in the Eastern region.

Retail Sector

The overall mall vacancy in the city further dropped by

0.4 percentage points and was recorded at 3.9% at the

end of 4Q 2013, declining on the back of healthy leasing

activity and the new mall becoming operational with

more than 95% occupancy. VIP road was the most

active main street too witness leasing from retailers of

jewellery, accessories and apparels segments. Rentals

remained stable across main streets and malls owing to

steady demand.

31

Outlook

In the first quarter of 2014, the new launch

activity in residential sector is expected to remain

similar to that witnessed in 4Q 2013, with continued

focus on mid-end segment. North-east submarket

and Southern peripheral locations such as

Narendrapur, Sonarpur and Joka are likely to see

majority of new launches as a number of projects,

currently in pre-launch stage, are anticipated to be

launched in the next quarter. Capital values are likely

to remain stable across most locations as the sales

activity is expected to take 3-6 months to pick up.

However, the South-east submarket might witness a

marginal appreciation in both mid and high-end

segments owing to new project launches at higher

price points.

The office space sector is expected to witness an

infusion of around 1.7 msf of new Grade A supply in 1Q

2014. A little over one-third of this was expected in

the last quarter of 2013, but got deferred to the new

year due to slow pace of construction amid subdued

demand. Also, more than half of the anticipated

supply would be concentrated in the peripheral

submarkets of Salt Lake and Rajarhat. Net

absorption is expected to improve further in the

coming quarter, but the overall vacancy level is also

anticipated to increase considering the huge supply

pipeline. Weighted average rentals are expected to

remain stable with slightly downward pressure in

Salt Lake micromarket, owing to high vacancy levels

existing.

The retail sector is expected to continue to

witness healthy leasing activity in 1Q 2014,

considering the significant enquiry levels. Also, the

quarter may witness more international brands

venturing into Kolkata as the city’s first luxury mall

became operational in 4Q 2013. Rentals may

continue to remain stable across most main streets

and mall submarkets. However, marginal

appreciation might be witnessed in the main-street

of VIP Road owing to healthy leasing activity and

increased enquiry levels. Mall inventory is expected

to increase by about 120,000 sf as the Lake Mall that

is partially operational as of now is expected to

become fully operational by next quarter.

32

MARKET OVERVIEW

Mumbai

Mumbai witnessed a total of approximately

5,500 units launched during 4Q 2013, a decline of

23% from the previous quarter. New launches

during the quarter were primarily concentrated in

the Western Suburbs (72%), followed by Thane

(15%) and Central Mumbai (8%). The decline in

launches was due to developers delaying projects in

order to reduce current unsold inventory. Most of

the new launches during the quarter were in the

lower end of the existing capital value ranges in

various locations resulting in healthy demand levels

for them.

The commercial office sector in Mumbai

witnessed an overall net absorption of 1.13 million

square feet (msf) during the fourth quarter,

witnessing a q-o-q decline of 1%. Majority of the net-

absorption was concentrated in Grade A

developments in the sub-markets of Thane-Belapur

Road (31%), Lower Parel (24%), Malad/Goregaon

(18%) and Thane (17%). The IT-ITeS sector continued

to remain the largest driver (68%) of transaction

activity, followed by Education (13%), FMCG (5%)

and Logistics sectors (5%).

Prime main-street locations like Lokhandwala

(Andheri), Fort, Fountain and Kemps Corner

witnessed healthy activity during the quarter, with

rentals appreciating in the range of 2-7%. Main-

street rentals in Thane corrected by 4% during the

fourth quarter due to landlords reducing rents to

attract tenants to vacant spaces. High demand for

space and declining availabilities in mall locations

like Lower Parel, Ghatkopar and Thane also resulted

in q-o-q rental appreciation of 2-5% at these

locations. However, mall rentals at Mulund declined

16% during the quarter with developers lowering

rentals in select developments which possess high

vacancy levels.


TRENDS AND UPDATES

Capital values continued to remain stable across

most locations in Mumbai during the quarter.

Preference for ready projects remained high among

end-users due to a large number of under-

construction projects facing approvals and execution

delays. Limited ready availability in sub-markets like

South-Central and North Mumbai could result in

capital values appreciating at these locations.

33



Source- Cushman and Wakefield Research

Note: The above values for high-end segment typically include units of 2,500-6,000 sf for South, South-Central, Central and North and units of 1,650-3,000 sf

for North (Santacruz & Juhu), Far North and North-East

South

South Central

Central

North

Far North

North East

Location 2008

43.0 - 55.0

47.0 - 67.0

27.0 - 31.0

9.0 - 13.0

33.0 - 53.0

14.0 - 18.0

34.0 - 55.0

10.0 - 16.0

42.5 - 58.0

42.0 - 66.0

22.0 - 30.0

10.0 - 16.5

2009

35.0 - 55.0

10.0 - 16.0

43.0 - 60.0

45.0 - 70.0

24.0 - 32.0

11.0 - 16.5

2010

48.0 - 70.0

46.0 - 78.0

34.0 - 58.0

28.0 - 40.0

12.5 - 18.0

14.0 - 22.0

2012

48.0 - 75.0

46.0 - 83.0

27.0 - 65.0

28.0 - 48.0

12.5 - 18.0

15.0 - 22.0

3Q 2013

48.0 - 75.0

46.0 - 83.0

27.0 - 65.0

28.0 - 48.0

12.5 - 18.0

15.0 - 22.0

4Q 2013

48.0 - 75.0

46.0 - 83.0

30.0 - 65.0

28.0 - 48.0

12.5 - 18.0

15.0 - 22.0

2Q 2013

48.0 - 70.0

46.0 - 78.0

30.0 - 58.0

28.0 - 40.0

12.5 - 18.0

14.0 - 22.0

1Q 2013

32.0 - 54.0

10.0 - 18.0

45.0 - 65.0

45.0 - 75.0

24.0 - 32.0

11.0 - 16.5

2011

Average Capital Values High End (INR ’000/sf)–

South

South Central

Central

North

Far North

North East

Location 2008

27.0 - 34.0

34.0 - 43.0

13.5 - 19.5

7.0 - 9.0

18.0 - 28.0

6.0 - 7.4

15.0 - 26.0

6.4 - 8.5

28.0 - 37.0

35.0 - 45.0

16.0 - 24.0

8.5 - 11.5

2009

17.0 - 30.0

6.5 - 8.5

30.0 - 40.0

40.0 - 48.0

16.0 - 25.0

9.0 - 12.0

2010

35.0 - 45.0

43.0 - 52.0

22.0 - 37.0

18.0 - 27.0

10.0 - 14.0

8.5 - 12.5

2012

40.0 - 50.0

45.0 - 58.0

23.0 - 40.0

20.0 - 30.0

10.0 - 14.0

8.5 - 12.5

4Q 2013

40.0 - 50.0

45.0 - 58.0

23.0 - 40.0

20.0 - 30.0

10.0 - 14.0

8.5 - 12.5

3Q 2013

40.0 - 50.0

45.0 - 58.0

25.0 - 40.0

20.0 - 30.0

10.0 - 14.0

8.5 - 12.5

2Q 2013

35.0 - 45.0

43.0 - 52.0

25.0 - 37.0

18.0 - 27.0

10.0 - 14.0

8.5 - 12.5

1Q 2013

17.0 - 35.0

6.5 - 10.0

30.0 - 40.0

43.0 - 52.0

16.0 - 25.0

9.0 - 13.0

2011

Average Capital Values – Mid Segment (INR'000/sf)


Note: The above values for mid-end segment typically include units of 1,400-2,500 sf for South, South-Central, Central and North and units of 900-1,400 sf

for Far North and North-East

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:

34


Approximately 5,500 units were launched during

the fourth quarter, a decline of 23% from the

previous quarter. Most new launches were in high-

end projects in the western suburbs of Mumbai. L&T

Realty and Sunteck Realty launched an additional

phase in their projects at Powai and Goregaon

respectively. Launches in the Dahisar-Mira road belt

also remained high with nearly 1,000 units launched

by Sheth Developers and ANA Realty. The Thane

submarket also continued its contribution to new

launch activity with projects at Ghodbunder Road

and Kalwa.

Auris Serenity

Transcon Developers, Sheth Developers

Malad

1,292 Apartment 2 BHK: 1,225

3 BHK: 2,085

4 BHK: 2,525

Omkar Alta Monte Tower B

Omkar Developers

Malad

605 Apartment 2 BHK: 1,200

3 BHK: 1,830

Anchor Park Phase II

Anchor Realty

Nalasopara 588 Apartment 1 BHK: 585

2 BHK: 820

Avant Grande

ANA Realty

Mira Road 528 Apartment 1 BHK: 895

2 BHK: 1,250

3 BHK: 1,895

Sheth Midori

Sheth Developers

Dahisar 468 Apartment 1 BHK: 698

3 BHK: 1,040

Solitaire

Wadhwa Developers

Thane 308 Apartment 2 BHK: 664

2.5 BHK: 833

3 BHK: 968

Callisto

L&T Realty

Parel 270 Apartment 2 BHK: 1,400

2.5 BHK: 1,775

Avenue 2

Sunteck City

Goregaon east 240 Apartment 2 BHK: 899 to 1,091

3 BHK: 1,395

Lodha Metropolis

Lodha Developers

Wadala 236 Apartment 1 BHK: 738

2 BHK: 1,431 to 1,439

3 BHK: 1,638 to 2,061

Ariana and Claron

L&T Realty

Powai 200 Apartment 2 BHK: 985 to 1,250

2.5 BHK: 1,540

3 BHK: 1,805 to 2,100

4 BHK: 3,400 to 4,235

Evergreen Heights

Wadhwa Developers

Kalwa 160

Apartment 1 BHK: 414

2 BHK: 652

Signature Residences

Shree Tirupati Group

Ghodbunder Road 132


2 BHK: 1,060

Kalpataru Avana

Kalpataru Group

Parel 120

Apartment 3 BHK: 2,500 to 4,084

4 BHK: 5,916

9 Riviera Hills

Ishaan Developers

Kalwa 110


2 BHK: 950

Harmony Sky suits

Harmony Lifestyle

Ghodbunder Road 100


Vardhaman Flora

Vardhaman Developers

Byculla 72

Apartment 2 BHK: 1,100

Mayfair Akshay

Mayfair Developers

Andheri 60


KUL Radiance

Kumar Urban

Bandra 60


2 BHK: 525



35

36

Mumbai witnessed an overall supply of 974,000

sf during the quarter, of which one-third was in Grade

A developments. Approximately 51% of the new

supply was in an IT-SEZ development located along

Thane-Belapur Road. Although supply was more


than double of the previous quarter, it declined by

approximately 32% compared to the fourth quarter

of 2012. This was primarily due to the developers

delaying completions in order to achieve adequate

occupancy rate in their projects.

Retail Sector

Low availability of quality spaces at established

locations like Lokhandwala (Andheri), Fort, Fountain

and Kemps Corner along with healthy demand from

key sectors like apparels and Food & Beverages

(F&B) resulted in rentals appreciating during the

quarter. Main-street rentals continued to remain

stable at Colaba, Vashi and Borivali, due to limited

transaction activity. Rentals at Linking road also

remained stable during the quarter despite

increased enquiries for space from retailers. With no

mall supply during the quarter in Mumbai, overall

vacancies declined by 0.1 percentage points and

were recorded at 15.3% at the end of Q4 2013. With

limited transaction activity in malls at Malad, Link

Road, Goregaon and Vashi, rentals continued to

remain stable during the quarter. Growing

residential real estate coupled with infrastructure

initiatives like the Chembur-Santacruz link road and

mono-rail, both of which are expected to become

operational in the first quarter of 2014 have led to

increased retailer interests for main-street locations

in Chembur.

Outlook

Demand for residential apartments in Mumbai is

likely to remain subdued during the first half of 2014

and could result in price corrections in a few under-

construction projects in select locations. A few

developers who have delayed launches are expected

to launch new projects in the first quarter of 2014. As

economic fundamentals are expected to improve in

the second half of 2014, demand is also likely to

gradually rise across the city.

Fresh commercial office supply of 3.3 msf is

expected to become operational in the first quarter

of 2014 in the micro-markets of Goregaon, Kurla,

Dadar and Vikhroli. Net-absorption is expected to

remain stable with healthy take-up expected in

suburban and peripheral locations such as Andheri,

Thane-Belapur Road and eastern suburbs. The high

supply could result in increasing vacancy levels and

downward pressure on rental values in select micro-

markets of Mumbai.

Demand for space in main-streets in prime

residential locations of Lokhandwala (Andheri),

Borivali and Vashi is expected to increase in the

coming quarters due to high demand from apparels,

electronics and F&B sectors. Low vacancies and high

demand for space in mall locations like Lower Parel,

Malad and Goregaon could result in higher rentals in

the upcoming quarter.

Western and central suburban locations

witnessed healthy construction activity during the

quarter. Capital values in under-construction

projects continued to remain stable during the

quarter. Developers refrained from any price hikes

as they are likely to bear a negative impact on

demand. Rise in unsold inventory in high-end


submarkets like Lower Parel has resulted in pressure

on capital values with prices correcting in a few

projects. A few developers are also offering

attractive discounts in under construction projects,

especially in the premium segment with an aim to

liquidate unsold inventory.

National Capital Region

MARKET OVERVIEW

With decreasing number of launches every

quarter, new unit launches in the year 2013 declined

by 33% compared to 2012. In 4Q 2013, new launches

were about 8,000 units, 18% less than the previous

quarter. More than 60% of the new units launched in

4Q 2013 were in the affordable segment. Demand too

remained sluggish in the fourth quarter with capital

and rental values remaining stable over the previous

quarter in all markets of NCR.

The NCR witnessed Grade A Office space supply of

over 4.0 msf in the fourth quarter, the highest in 2013.

The quarter also witnessed pre-commitments of

nearly 500,000 sf, majority by IT-ITeS and FMCG

companies. At 1.7 msf, Grade A absorption also

increased by more than four times over the previous

quarter. Over the year, while the leasing activity was

registered at 4.5 msf, net absorption was noted at 3.5

msf as a number of occupiers from the IT-ITeS sector

relocated and consolidated operations to achieve cost

and operational efficiencies in suburban locations.

The fourth quarter of 2013 witnessed continued

interest amongst retailers for quality mall spaces.

With no new mall supply, the vacancy levels declined

by 1.2 percentage points to 13.6%, from 14.7% in the

previous quarter. Although a few prominent malls in

South Delhi and Gurgaon saw high churn, especially in

the apparels and Food & Beverages (F&B) categories,

the rentals across micro markets maintained status

quo on a q-o-q basis. However, mall rentals in most

locations except Ghaziabad and West Delhi witnessed

a y-o-y increase, due to limited availability and no new

mall supply. Rentals across all main street locations

remained unchanged over the previous quarter.

TRENDS AND UPDATES


Subdued transactions across South and Central

Delhi led to stagnant capital values. Similarly, capital

values remained stagnant in Gurgaon and Noida

owing to continuous launches of new units at

prevailing market rates. Rental values too remained

stable in both mid and high-end segments across

markets as landlords kept their focus on retaining

tenants rather than increasing rents owing to

increase in supply in the coming months.

37



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-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:


Location

South-West

South-East

South Central

Central

Gurgaon

Noida

28.0 - 33.0

19.0 - 23.0

20.0 - 23.0

45.0 - 50.0

5.2 - 11.0

5.2 - 6.2

2008

29.0 - 34.0

21.0 - 24.0

21.0 - 25.0

40.0 – 45.0

5.3 – 12.5

5.2 – 6.5

2009

36.0 - 43.0

24.0 - 30.0

25.0 - 32.0

50.0 - 57.0

6.2 - 18.0

5.5 - 7.0

2010

42.0 - 50.0

25.0 - 35.0

27.0 - 40.0

50.0 - 65.0

8.5 - 21.0

5.5 - 7.5

2011

50.0 - 60.0

25.0 - 45.0

27.0 - 50.0

60.0 - 80.0

10.5 - 32.0

6.2 - 8.1

2012

45.0 - 60.0

25.0 - 40.0

27.0 - 50.0

60.0 - 90.0

11.0 - 27.5

6.6 - 9.0

3Q 2013

45.0 - 60.0

25.0 - 40.0

27.0 - 50.0

60.0 - 90.0

11.0 - 27.5

7.0 - 8.5

4Q 2013

45.0 - 60.0

25.0 - 40.0

27.0 - 50.0

60.0 - 90.0

11.5 - 29.0

6.6 - 9.0

2Q 2013

50.0 - 60.0

25.0 - 45.0

27.0 - 50.0

60.0 - 90.0

11.0 - 32.0

6.5 - 8.5

1Q 2013




Note: The above values for mid-segment typically include units of 1,600-2,000 sf

Average Capital Values – Mid End (INR '000/sf)

South-East

South Central

Gurgaon

Noida

Location

14.0 - 16.0

18.0 - 20.0

3.8 - 5.2

3.0 - 4.5

2008

14.5 - 16.5

18.5 – 20.5

4.0 – 6.5

3.2 – 5.5

2009

15.0 - 20.0

20.0 - 23.5

4.5 - 7.5

3.8 - 5.6

2010

15.0 - 28.0

25.0 -30.0

5.0 - 9.0

4.2 - 5.8

2011

25.0 - 30.0

25.0 - 35.0

6.8 - 10.5

4.3 - 6.2

2012

25.0 - 30.0

25.0 - 35.0

7.5 - 11.5

4.5 - 6.5

3Q 2013

25.0 - 30.0

25.0 - 35.0

7.5 - 11.5

5.0 - 6.0

4Q 2013

25.0 - 30.0

25.0 - 35.0

7.5 - 11.5

4.5 - 6.5

2Q 2013

25.0 - 30.0

25.0 - 35.0

6.8 - 11.5

4.5 - 6.2

1Q 2013

The new unit launches in the fourth quarter

declined by 18% from the previous quarter.

Approximately 80% of the new units were launched

in Greater Noida, primarily in the affordable

segment. Overall in 2013, most of the new units were

launched in peripheral locations like Greater Noida


(West), New Gurgaon and Dwarka Expressway,

primarily in the affordable and mid-end segments.

Many developers deferred the official launch of their

projects to next year, with 8-10 projects being

currently in the soft launch stage.

38

Allure ApartmentsATS Greens Yamuna Expressway 1,104 2 BHK: 1,150

3 BHK: 1,350

Smart Homes (14th Avenue)

ApartmentsGaursons Sector 16 C, Greater

Noida (West)

1,040 2 BHK: 760 to 960

3 BHK: 1,160

Amaatra Homes ApartmentsAmaatra Group Sector 10, Greater

Noida (West)

924 2 BHK: 1,048 to 1,179

3 BHK: 1,405 to 1,722

Novena Greens ApartmentsSachdeva Buildcon+

Woodhill Homes Pvt. Ltd

Techzone 4, Greater

Noida (West)

720 2 BHK: 1,050 to 1,225

3 BHK: 1,355 to 1,656

Greenburg ApartmentsMicrotek Group Sector 86, Gurgaon 700 2 BHK: 1,480

3 BHK: 1,895 to 2,285

4 BHK: 3,005

Verasalia ApartmentsAnsal API Sector 67A, Gurgaon 660 3 BHK: 1,561 to 1,685

4 BHK: 1,818 to 1,885

Greenshire ApartmentsNirala Group Sector 2, Greater Noida 646 2 BHK: 950 to 1,185

3 BHK: 1,280 to 1,860

Stadia ApartmentsCivitech Sector 79, Noida 528 3 BHK: 1,495 to 1,735

4 BHK: 2,690

MSA Circuit Heights ApartmentsMSA Developers Pvt. Ltd Jaypee Sports City,

Yamuna Expressway

512 2 BHK: 1,150

3 BHK: 1,395 to 1,575

Mahagun Mantra ApartmentsMahagun Sector 10, Noida

Extension

506 2 BHK: 1,025 to 1,200

3 BHK: 1,400

Kings Valley ApartmentsDewa Coloniser Pvt. Ltd Sector 4, Greater

Noida (West)

421 1 BHK: 566

2 BHK: 900 to 1,105

3 BHK: 1,370

Kings Valley ApartmentsM3M Sector 70A, Gurgaon 152 2 BHK: 1,475 to 1,600

3 BHK: 2,100

48 Canvas ApartmentsSupertech Sector 79, Gurgaon 56 4 BHK: 3,620



Developers focussed on completing under

construction projects and building market

credibility. Owing to pile up of inventory and slow

rate of uptakes, developers continued to offer

discounts and attractive payment schemes to


attract end-users and investors. More than 35

projects across Delhi-NCR are scheduled for

completion in the next quarter. While some of them

may get deferred to later dates, a sizeable amount of

units are likely to be completed in 1Q 2014.


Supply in the fourth quarter increased by more

than three times over the previous quarter.

Approximately 50% of new supply was in

commercial office space category, followed by 25%

in IT Parks and 24% in IT SEZs. At 42%, the IT-ITES

sector had the highest share of Grade A absorption,

followed by Consulting (13%) and Engineering

sectors (9%), amongst others. Although net

absorption increased significantly in the fourth

quarter, the total net absorption for the year

recorded a decline of 20% from 2012, in the wake of

slow economic growth in the country. Even with

increased net absorption in the fourth quarter, the

overall vacancy level in Grade A properties increased

by 1.8 percentage points as net absorption did not

keep pace with the supply, which led to softening of

rentals across most markets. However, over the year,

weighted average rental values appreciated across

all markets as supply with relatively lower rents saw

absorption, resulting in mainly higher priced spaces

being currently available.

39

40

Both malls and main streets witnessed resizing

and relocation of stores, with a number of national

and international brands like Croma, Apple, The

Collective, Westside, etc. strategizing their presence

in the market to optimize costs. The rentals

remained stable from the previous quarter in both

Retail Sector

malls and main streets. Over the year, rental values

strengthened in select main street locations like

Connaught Place, DLF Galleria (Gurgaon) and

Rajouri Garden due to persistent demand and

limited availability of quality stock.

In the residential sector, capital and rental values

are expected to stay stable in the forthcoming

quarter due to the wait-and-watch strategy adopted

by buyers. Gurgaon and Noida too are expected to

witness stable rental and capital values in the

coming months with prices moving marginally only

in select locations or projects. Completion of

projects is expected to put downward pressure on

the prices of under-construction projects across

Gurgaon and Noida.

More than 2.8 msf of office space is scheduled for

completion in the first quarter of 2014 across Delhi

and Gurgaon, of which 60% belongs to commercial

space category. Increasing vacancy levels and

Outlook

cautious sentiments among occupiers is likely to

soften rentals across peripheral markets of the NCR.

The next quarter is expected to witness an

increase in churn of retail spaces as a number of

leases will be due for renewals in prominent malls in

South Delhi, possibly leading to a slight rental

appreciation. Approximately 7.0 million square feet

(msf) of new mall supply is scheduled for completion

in the next year, which may adversely impact

vacancy levels and rentals in micro markets where

the new malls become operational. Steady demand

in main street locations is likely to keep rentals

unchanged during the next quarter.

MARKET OVERVIEW

Pune

Pune’s residential real estate market witnessed new

launches of nearly 3,780 units in the last quarter of

2013, similar to the previous quarter depicting stability

in launch activity. However the new unit launches

declined 20% on a year-on-year (y-o-y) basis, mainly

due to the slowdown in economic activity, which has

resulted in a cautious approach being adopted by the

developers. Mid-segment accounted for approximately

57% of new launches during the quarter. Capital and

rental values continued to remain stable during this

period, amidst the subdued demand.

Commercial office space sector recorded a net

absorption of nearly 470,000 sf during 4Q 2013,

registering a decline of nearly 64% q-o-q. Grade A net

absorption also fell by 76% to 290,000 sf during the

same period, due to the slowdown in transaction

activity. However, 2013 yearly trends indicated an

improvement of 15% in net absorption for All Grades

and 21% for Grade A spaces. The last quarter of 2013

saw an infusion of nearly 183,000 sf of commercial

space. Overall vacancy levels dropped by 0.3

percentage points, due to higher net absorption

compared to the new supply during the quarter.

The retail sector rentals witnessed a mixed trend

during this quarter. While rentals for most of the main

street locations remained stable, mall spaces witnessed

a slight correction in rental values. No new supply and

stable transaction activity contributed to a q-o-q decline

of 4.2 percentage points in mall vacancies.

TRENDS AND UPDATES


Overall, secondary markets witnessed stability in

capital values during the quarter across the city,

primarily due to subdued demand in the wake of

overall economic slowdown. Only select prime

projects witnessed a minor appreciation in resale

capital values due to limited availability of similar

ready projects by reputed developers in the locality.

The quarter witnessed the completion of Phase I of

Tuscan Estate in Kharadi, while Phase 2 for the same

project was launched earlier during the second half

of the year.

41



Average Capital Values – Mid End (INR '000/sf)

Location

Koregaon Park, Boat Club

Aundh

Baner

Wakad

Kalyani Nagar

Wanowrie, NIBM Road, Kondhwa

2008

4.5 - 5.0

3.5 - 4.0

3.0 - 3.8

2.5 - 3.0

4.5 - 5.5

3.0 - 3.2

2009

4.5 - 5.5

3.6 - 4.2

2.9 - 3.6

2.2 - 2.8

4.5 - 5.5

2.8 - 3.1

2010

6.0 - 7.0

4.0 - 5.0

3.5 - 5.5

3.5 - 4.0

6.5 - 7.0

4.0 - 5.5

2011

6.0 - 7.0

4.5 - 5.5

4.0 - 5.5

3.7 - 4.5

6.5 - 7.5

4.0 - 5.5

2012

8.0 - 10.0

6.0 - 7.0

5.0 - 6.0

4.0 - 4.7

7.0 - 8.0

4.8 - 6.0

4Q 2013

8.0 - 10.0

6.5 - 8.0

5.7 - 6.8

4.7 - 5.5

7.0 - 8.0

4.8 - 6.0

3Q 2013

8.0 - 10.0

6.0 - 8.0

5.5 - 6.5

4.5 - 5.5

7.0 - 8.0

4.8 - 6.0

2Q 2013

8.0 - 10.0

6.0 - 7.0

5.0 - 6.0

4.0 - 4.7

7.0 - 8.0

4.8 - 6.0

1Q 2013

8.0 - 10.0

6.0 - 7.0

5.0 - 6.0

4.0 - 4.7

7.0 - 8.0

4.8 - 6.0






Koregaon Park, Boat Club

Wanowrie, NIBM, Kondhwa

Location

Aundh

Baner

Kalyani Nagar

2008

3.4 - 4.5

9.6 - 12.7

4.9 - 6.1

NA

7.6 - 9.6

2009

3.3 - 3.6

8.5 - 10.7

5.0 - 5.2

NA

7.3 - 9.2

2010

4.0 - 5.0

9.0 - 13.0

5.0 - 5.5

5.0 – 6.5

8.0 - 12.0

2011

4.0 - 5.5

13.0 - 15.5

5.0 - 6.0

6.5 – 7.5

8.0 - 12.5

2012

5.0 - 6.2

14.0 - 17.0

8.0 - 10.0

8.0 – 10.0

12.0 - 14.0

3Q 2013

14.0 - 17.0

9.0 - 11.0

8.0 – 10.0

12.0 - 14.0

5.2 - 6.2

4Q 2013

14.0 - 17.0

9.0 - 11.0

8.0 – 10.0

12.0 - 15.0

5.2 - 6.5

2Q 2013

14.0 - 17.0

8.0 - 10.0

8.0 – 10.0

12.0 - 14.0

5.0 - 6.2

1Q 2013

14.0 - 17.0

8.0 - 10.0

8.0 – 10.0

12.0 - 14.0

5.0 - 6.2


Nearly 3,780 units were launched in the fourth

quarter of 2013, almost at par with the number of

units launched in 3Q 2013. Mid-segment accounted

for 57% of these new launches. Locations like

Hinjewadi, Mahalunge and Bavdhan along the NH-4

Bypass stretch contributed 30% to new units

launched during the quarter. Hadapsar and

Mundhwa contributed 20%, followed by 15%

contribution from South-eastern areas like NIBM,

Kondhwa and Undri. Majority of the launches in this

quarter were 2 BHK configurations with average

sizes varying from 700-1,400 sf.

of Units*Project Name Developer Location

Number Type Area of Units (in sf)

Pegasus Properties Hinjewadi Apartment 2 BHK: 1,228 to 1,2322.5 BHK: 1,4323 BHK: 1,649 to 1,662

798 Megapolis Mystic

Amanora Hadapsar Apartment 1 BHK: 6862 BHK: 1,2313 BHK: 1,5294 BHK: 2,172

545 Amanora (Neo Towers)

Elite Landmarks Mahalunge Apartment 1 BHK: 6112 BHK: 1,212 to 1,3183 BHK: 1,723 to 1,7753.5 BHK: 1,976 to 2,0234 BHK: 2,550 to 2,562

260 Metro Jazz

Gokhale Constructions Pirangut Apartment 1 BHK: 6102 BHK: 740 to 953

250 Briz

Mantra Properties Undri Apartment 2 BHK: 810 to 1,0803 BHK: 1,314 to 1,351

194 Ira

Shree Venkatesh Buildcon Pvt. Ltd

Mundhwa Apartment 1 BHK: 463 to 5152 BHK: 694 to 7583 BHK: 787 to 817

193 Venkatesh Graffiti (Block B and E)

42

of Units*Project Name Developer Location

Number Type Area of Units (in sf)

Anshul Realties Moshi Apartment 1 BHK: 6602 BHK: 877 to 925

184 Anshul Kosmas

Ganesh Developers Ambegaon Apartment 1 BHK: 6952 BHK: 985 to 1,090

164 Ganesh Graceland

Krishna Construction

Company

Alandi Apartment 1 BHK: 652 to 6572 BHK: 896 to 916

160 Krishna Icon Phase II

K Raheja Corp NIBM Apartment 2 BHK: 1,3353 BHK: 2,050

160 Raheja Vistas

Premiere (Tower 6)

Lodha Group Gahunje Apartment 1 BHK : 700136 Lodha Belmondo

Kolte Patil Undri Apartment 3 BHK: 1,685 to 1,8254 BHK: 2,095 to 2,300

132 24K Glamore

ABIL Real Estate Kalyani Nagar Apartment 3 BHK: 3,0004 BHK: 4,000

128 ABIL Verde

Sobha Developers Kondhwa Apartment 1 BHK: 8002 BHK: 1,100 to 1,400

112 Orion

Ravinanda Landmarks Wagholi Apartment 1 BHK: 645 to 6551.5 BHK: 8402 BHK: 950 to 1,015

84 Skywater -

Waterfront Homes

Dynamic Realty Wagholi Apartment 1 BHK: 545 to 8102 BHK: 1050 to 1,110

72 Linea

Pride Purple Group Baner Apartment 3 BHK: 34334 BHK: 3,799 to 3,8174.5 BHK: 4,190 to 4,582

62 The Spires

Natraj Group Lohegaon Apartment 1 BHK: 600 to 7002 BHK: 800 to 1,647

56 Vela Enclave

Gera Bavdhan Villas 3.5 BHK: 3,5005.5 BHK: 5,500

36 Gera Isle Royale -

Dahlia (Villas)

Pristine Properties Ambegaon Apartment 2 BHK: 977 to 1,05232 Pristine Pacific

Phase III

Gera Bavdhan Apartment 4.5 BHK: 3,08024 Gera Isle Royale

Verbana

(Apartments)


Areas like Hinjewadi, Balewadi, Bavdhan, Wakad

and Mahalunge along the NH-4 Bypass, Kharadi and

Wagholi in the North-east witnessed tremendous

construction activity. High-end capital values

witnessed a slight appreciation in Kalyani Nagar due

to the launch of a prime project in the locality, which

commanded a higher base price. South-eastern


areas like Wanowrie, NIBM and Kondhwa also

witnessed a slight upward revision in capital values

due to launch of new projects with better amenities.

Mid-end capital values continued to remain stable

during the quarter with a slight upward revision in

lower limit of capital values range for micro-markets

like Aundh, Baner and Wakad.

Pune witnessed 928,000 sf of leasing activity

during the quarter, nearly 72% of which was in Grade

A spaces. The net absorption during the quarter

totalled to approximately 470,000 sf indicating a

prevalent trend of relocation and consolidation

amongst occupiers. Though the quarterly trends

recorded a decline in leasing and net absorption, the

yearly numbers depicted a 36% and 15% rise in


leasing and net absorption respectively. Majority of

the activity during 4Q 2013 was concentrated in

Hadapsar, Kharadi and Viman Nagar. The IT-ITeS

sector contributed to 58% of the absorption,

followed by 17% by the BFSI sector. Quoted rentals

remained stable, while the dip in vacancy levels

contributed to a marginal fluctuation in the

weighted average rentals across micro markets.

43

44

Mall rentals in locations like Nagar Road and

Camp remained stable while those in Koregaon Park,

Ganeshkhind Road and Hadapsar registered a

decline of 4% to 9% during 4Q 2013, primarily due to

subdued demand. Nagar Road continued to be the

preferred mall location during the year, due to

presence of quality malls with a good tenant mix.

Main street rentals remained stable across majority

of the micro markets in the city, except Koregaon

Retail Sector

Park and Mahatma Gandhi (MG) Road which

witnessed 3-4 % downward q-o-q revision due to

existing demand-supply dynamics. Increase in

demand from Food & Beverages (F&B) retailers and

youth-centric brands contributed to 4% quarterly

appreciation in Fergusson College (FC) Road rentals.

Overall vacancy levels in malls across the city

declined by 4.2 percentage points in 4Q 2013 due to

lack of new supply and good leasing activity.

Capital and rental values are expected to remain

stable in the coming months till the demand picks up

and the economic scenario improves. However,

launch activity in 2014 is likely to be at par with 2013.

Majority of these launches are likely to be

concentrated in suburban and peripheral locations

such as Wagholi, Baner, Hadapsar, Undri, Pisoli,

Kondhwa and along the NH-4 Bypass stretch.

Approximately 5.7 msf of office space supply is

expected to be completed next year, which is likely to

increase vacancies across submarkets considering

that the transaction activity is likely to remain at par

with the current year. Near 2.3 msf of supply is

Outlook

expected to be delivered in 1Q 2014, with rentals

likely to remain stable in the coming months. The IT-

ITeS sector is expected to continue driving the

market activity in the near future.

Rentals for main street locations are expected to

remain stable in the near future, except Koregaon

Park which might witness a slight correction in

rentals due to subdued demand. Mall rentals in

Koregaon Park and Ganeshkhind Road are also

expected to remain under pressure due to subdued

demand. Vacancies are expected to increase amidst

stable transaction activity and 780,000 sf of supply

expected in 2014.

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CB Property Insights Q4 2013

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