Real Estate

Residential Property Market OverviewFebruary 2014

research & forecast reportSYDNEY CENTRAL BUSINESS DISTRICT

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

ecoNoMIc BaroMeter

Dec-12 Dec-13

repo rate 8.00% 7.75%

reverse repo rate 7.00% 6.75%

crr 4.25% 4.00%

Inflation 7.31% 6.16%

home loan rate 10.00% 10.30%

returN oN alterNatIve INvestMeNts

Dec-12 Dec-13 YoY % Change

Gold 31,096 30,434 -2.13%

silver 59,963 46,121 -23.08%

fixed Deposit 8.50% 9.00% 5.88%

equity 18,916 20,703 9.44%

realty Index 1,940 1,347 -30.57%

repo rate cash reserve ratio Wholesale price Index

ecoNoMIc INDIcators

In p

erce

ntag

e

Macro Economic Overview

The GDP grew by 4.6% in the first half of FY2013-14, which is the slowest • economic growth rate in the last nine years. The Reserve Bank of India (RBI), The World Bank, IMF and ADB have lowered the growth forecast from 3.75% to 5.3% for 2013-14.

RBI raised its policy repo rate to 7.75% amid market worries over slowing growth and •the prospect of further tapering of US stimulus. Following the hike, banks are likely to increase their home loan rates.

Due to the pessimistic economic outlook, sales volumes have come down by 15% to •40%. In the primary market, many developers were willing to negotiate on prices and offered various incentives. In the secondary market, a substantial discount was available and prices were well below that of the primary market. This is primarily because investors shied away from the market, as they found it difficult to flip units and do not foresee significant capital appreciation in the realty sector in the short term.

COLLIERS VIEW: The Indian real estate markets are primarily sentiment driven, and •the perception due to the adverse economic climate is that the residential sector will witness lower demand until at least the national elections. We believe that for those looking at a longer term investment, this is a good time to buy a property. Property today is available at good discounts, and with prospects of a stable government the demand is likely to rebound.

4.0

3.0

6.0

5.0

8.0

9.0

7.0

11.0

10.0

12.0

apr

‘09

feb

‘09

Dec‘

09

apr‘1

1

apr‘1

2

Jun

‘13

aug

‘13

oct

‘13

Dec

‘13

apr

‘13

feb‘

11

Jun

‘09

Jun‘

10

apr‘1

0

feb‘

10

Jun‘

11

Jun‘

12

aug’

08

jun’

08

apr

‘08

aug‘

09

aug‘

10

aug‘

11

aug‘

12

Dec’

08

oct

‘08

oct

‘09

Dec‘

10

oct

‘10

oct

‘11

oct

‘12

feb‘

12

feb‘

13

Dec‘

11

Dec‘

12

2.0

1.0

0.0

-1.0

-2.0

Source: Goverment of India, Colliers International India Research

Research & Forecast ReportIndia I Residential | Feb 2014

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

2

3

1

3

4Q 2013 1Q 2014F

capital value

rental value

New project

construction pace

MuMBaI

SELECT NEW PROJECTS

PROJECT NAmE LOCATION DEvELOPER NAmE

TENTATIvE POSSESSION*

RATE (PER SQ.FT.)**

aveza (Gateway towers) Mulund east tata housing 4Q 2017 13,500

elanza santacruz east shamik Group 1Q 2015 17,000

Monte south Byculla Marathon realty 4Q 2018 18,999

palava Dombivali lodha Group 4Q 2018 4,545

raheja ridgewood Goregaon raheja Group 4Q 2017 13,250

sunteck city - avenue II Goregaon sunteck realty 4Q 2018 12,750

•Demand for premium residential properties in the secondary sales market remained moderate this quarter due to high price points. In the primary market, developers remained open to negotiation on prices in projects having significant unsold inventory.

The market witnessed limited projects •launched in micro-markets like Goregaon, Byculla and Dombivali. These projects were priced in the range of INR 12,750 to 19,000 per sq ft. A large-scale mid-range project, Palava by Lodha Group, was launched at Dombivali at INR4,545 per sq ft.

The average capital and rental values of •prime residential properties remained stable. Due to very limited transactions by both investors and end-users across the city.

The state government has increased the •ready reckoner rates for residential and commercial properties by up to 20% in 26 posh zones of Mumbai. The increase in rates will impacts micro-markets like Worli, Napeansea Road, Altamount Road and Carter Road. The government is expected to collect over INR20,000 crore in 2013 - 14 via stamps and registration. The increase in the ready reckoner rates may result in increase in property prices in these areas.

COLLIERS VIEW:• Low liquidity, an increase in interest rates and ready reckoner rates will keep residential markets under pressure in coming quarters. Absorption in the luxury segment will remain restricted; however, the new launches in the middle and low-end segments will continue to have traction at the introductory prices. Overall capital values in the primary and secondary sales markets are expected to be under pressure in the short to medium term.

0

10,000

20,000

30,000

40,000

60,000

70,000

50,000

80,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

14f

1Q20

11

3Q20

11

80,000

40,000

50,000

70,000

60,000

10,000

20,000

30,000

0

Mumbai

prab

hade

vi

colaba, cuffe parade

sout

h M

umba

i

Malabar hill, altamount road, carmichael road

Worli

Wor

li

Breach candy, Napeansearoad, peddar road

prabhadevi

Band

ra

Bandra

sant

acru

z

santacruz

andh

eri

andheri

pow

ai

powai

Khar

Khar

Juhu

Juhu

200

150

100

50

0

powai

Khar

prabhadevi

Breach candy, Napeansea road, peddar road

Malabar hill, altamount road, carmichael road

colaba, cuffe paradeBandra

Juhu

andheri

Worli

santacruz

INr

per

sq.ft

.

Note: above values represents indicative asking price for premium properties

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

averaGe capItal value raNGe

averaGe reNtal value

averaGe capItal value treNDs

cItY resIDeNtIal BaroMeter

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

micro market Ongoing Price (P.S.F)

thane - Kalyan 4,000 - 8,000

Navi Mumbai 3,500 - 7,500

virar - Boisar 3,000 - 5,500

INvestMeNt opportuNItIes

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

4Q 2013 1Q 2014F

capital value

rental value

New project

construction pace

DelhI

SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

capital Greens shivaji Marg Dlf ltd. 2Q 2015 14,000

castlewood okhla Indiabulls ltd. 2Q 2014 12,800

Kings court Greater Kailash- II Dlf ltd. 1Q 2015 40,000

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

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

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

The Delhi residential market remained •depressed for a third consecutive quarter. Sales volumes were reduced significantly primarily because of limited investor interest in view of the current political turbulence.

Limited new supply entered into Delhi •prime residential this quarter, in the form of redevelopment in Vasant Vihar and Panchsheel Park micro markets.

Pressures on rents continued with the •officials of multinational corporations and expatriates that are currently trying to optimise their costs negotiating on rental values. However, asking rentals have not changed much from previous quarter.

Capital values have come under pressure •and properties were available in the market at heavy discounts. The sales volumes were low and only a few deals were concluded.

In order to create more land for residential •development on the outskirts of Delhi, the Delhi Development Authority (DDA) proposes to target areas like Kanjhawala, Najafgarh, Burari, Ghitroni and Bawana for real estate development as amended in Master Plan of Delhi (MPD-2021).

COLLIERS VIEW:• The residential sector will witness restricted demand until at least the national elections. However, the new state government started focusing on various stalled infrastructure projects in the city which are expected to be operational in coming quarters. Rental and capital values will remain under pressure in near term for premium properties.

0

15,000

30,000

45,000

60,000

90,000

105,000

75,000

120,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

14f

1Q20

11

3Q20

11

80,000

40,000

50,000

70,000

60,000

10,000

20,000

30,000

0

Delhi

200

160

120

80

40

0

INr

per

sq.ft

.







anan

d Ni

keta

n,

vasa

nt v

ihar

panc

hash

ila, a

nand

-lo

k, Ni

ti Ba

gh, s

Da

frie

nds

colo

ny,

Mah

aran

i Ba

gh

shan

ti Ni

keta

n,

Wes

tend

Grea

ter

Kaila

sh I

&

II, s

outh

ext

ensi

on

Golf

link

s, J

or B

agh,

su

nder

Nag

ar

chan

akya

pur

i

prith

vira

j roa

d,

aura

ngze

b ro

ad

anand Niketan, vasant vihar

panchashila, anandlok, Niti Bagh, sDa

friends colony, Maharani Bagh

shanti Niketan, Westend

Greater Kailash I

& II, south extension

Golf links, Jor Bagh, sunder Nagar

chanakya puri

prithviraj road, aurangzeb road

prithviraj road, aurangzeb road

Golf links, Jor Bagh, sundar Nagarshanti Niketan, Westend

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

panchashila, anandlok,Niti Bagh, sDa

anand Niketan, vasant vihar

5

4Q 2013 1Q 2014F

capital value

rental value

New project

construction pace

GurGaoN

SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

ashiana landcraft sector 88a ashiana Group 4Q 2017 6,250

Bptp pedestal sector 70a Bptp ltd. 4Q 2018 7,000

eldeco sohna sohna road eldeco Group 4Q 2018 4,250

Imperial tower (Godrej summit) sector 104 Godrej Group 4Q 2017 7,400

Ivy terraces sector 70 unitech ltd. 4Q 2018 4,500 - 6,500

tranquil heights sector 82a vatika Group 4Q 2017 7,200

0

5,000

10,000

15,000

20,000

30,000

35,000

40,000

25,000

45,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

14f

1Q20

11

3Q20

11

18,000

8,000

10,000

16,000

14,000

12,000

2,000

4,000

6,000

0

Gurgaon

Nh -

8

sohna road & ext

Golf

cour

se r

oad

Dlf phase I

sohn

a ro

ad &

ext

Dlf

phas

e I

Nh - 8

Golf course road

sush

ant l

ok

sushant lok

80

60

40

20

0

INr

per

sq.ft

.









Golf course road extension 7,500 - 9,000

sohna extension 4,000 - 5,000

pataudi road 4,500 - 5,500

New Gurgaon 4,000 - 5,000


•During 4Q 2013, restricted investor activity pulled down the overall demand in Gurgaon’s residential market. In the primary market, developers did not reduce the base selling price, but many were willing to negotiate and offered various incentives.

Projects which were close to completion •witnessed robust demand from end-users. However, in the secondary market, a substantial discount was available and prices were well below that of the primary market. Slow construction activities resulted in completion of few residential projects / parts of projects like “Tulip Orange” by Tulip Infratech Pvt, Ltd, at Sector 70.

Due to decreased demand, developers •remained cautious in launching new projects. Restricted sales volumes in both primary and secondary markets resulted in downward pressure on both capital and rental values across all micro markets.

In order to boost residential real estate •activities, the Haryana government has decided to allow mixed land use in commercial zones notified in the master plan. According to the new policy, projects with at least 10 acres land and located along at least 30 meter wide road, will be allowed mixed use development comprising a maximum of 50% residential usage.

COLLIERS VIEW:• Looking forward, the capital values are expected to remain under pressure in coming quarters. End-user activity is expected to remain restricted primarily due to high price points and relatively fewer options available for mid-segment housing. The pre-launches in the mid- and low-end segment will continue evince good response at the introductory prices.

Dlf phase I

Nh-8

Golf course road

sushant lok

sohna road & ext


4Q 2013 1Q 2014F

capital value

rental value

New project

construction pace

NoIDa

SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

Brys Buzz sector 150 Brys Group 4Q 2017 17,000

Mahagun Meadows sector 150 Mahagun Group 4Q 2016 4,550

pratishtha sector 75 panchsheel Buildtech pvt. ltd 4Q 2017 4,960

romano sector-118 supertech ltd. 4Q 2017 4,150

vasilia sector-32 & 25a Wave Group 4Q 2016 8,370

victory We sector 25a victory projects 4Q 2015 8,650

The NOIDA residential property market •witnessed low sales volumes in both primary and secondary residential markets in 4Q 2013.

New launches have dried up in the •fourth quarter in NOIDA and only a few residential projects were launched, in the price band of 4000 to 9000 per sq ft. However a premium residential project “Brys Buzz” by Brys Group at Sector 150 was priced at INR17,000 per sq ft.

Capital values and rental values in both •primary and secondary markets remained stable; this is due to limited interest from both investors and end-users. However, developers offered various incentives, that included cash discount to clear their unsold inventories.

In order to optimise the utilisation of land •and improve the habitability of NOIDA, the NOIDA authority has approved a mixed land use policy in NOIDA Master Plan 2021, which will permit residential facilities in commercial and institutional areas.

COLLIERS VIEW:• Currently, investors are delaying their decisions due to economic and political uncertainties. However, considering the fact that the NOIDA residential market is primarily driven by end-users, the market may see marginal increase in end-user and investor activity with many new projects in the pipeline offering various attractive offers and other promotional schemes to lure buyer interest. The market is expecting the completion of various projects that were launched during 2009 to 2010 and which have already been delayed one or two years. This additional supply will keep capital and rental values stable across all micro markets.

0

1,500

3,000

4,500

6,000

9,000

10,500

7,500

12,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

3Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

14f

1Q20

11

3Q20

11

12,000

6,000

7,500

10,500

9,000

1,500

3,000

4,500

0

NOIDA

sector 50

sector 44

sector 61,62,63

sector 28,29,30

sector 92/93

40

30

20

10

0

INr

per

sq.ft

.









NoIDa expressway 4,000 - 7,000

sectors 71 to 83 4,500 - 5,500


sect

or 2

8, 2

9, 3

0

sect

or 9

2/93

sect

or 6

1, 62

., 63

sect

or 5

0

sect

or 4

4

sector 61,62,63

sector 92 / 93

sector 28,29,30

sector 50sector 44

7

4Q 2013 1Q 2014F

capital value

rental value

New project

construction pace

cheNNaI

2,000

6,000

18,000

14,000

10,000

22,000

30,000

26,000

38,000

34,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

14f

1Q20

11

3Q20

11

25,000

9,000

13,000

21,000

17,000

1,000

5,000

Chennai

anna Nagar

Boat club

adyar

Nungambakkam

Beasant Nagar

t Nagar

sholinganallur

siruseri/ Kazipattur

alwarpet / r a puram

velachery

85

70

55

40

25

10

-5

INr

per

sq.ft

.









velachery 5,000 - 7,000

sholinganallur 3,500 - 4,200

siruseri/ Kazipattur 3,000 - 4,000

Kelambakkam 3,000 - 4,000


SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

aldea thoraipakkam casa Grande 4Q 2015 5,100

czar r.a.puram real value 4Q 2015 25,000

lilac heights r.a.puram eta star 4Q 2015 18,000

Manadarin thoraipakkam radiance 2Q 2015 7,100

park residence Kotturpuram olympia Group 4Q 2015 23,000

sukriti t.Nagar BBcl 2Q 2015 15,000

•In 4Q 2013, many new premium and mid-range projects were launched in Chennai. Micro-markets like R.A. Puram, T. Nagar and Kotturpuram saw premium projects launched in the price range of INR15,000 - 25,000 per sq ft, while micro-markets like Thoraipakkam, Kelambakkam, Siruseri and Pallikaranai witnessed mid-range projects launched in the price bracket of INR3,000 - 7,000 per sq ft.

4Q 2013, saw completion of various •premium projects, including Jashn by Arihant Group at Egmore, 36 Carat by Akshaya Homes at Kilpauk, both priced in the range of INR18,000 - 22,000 per sq ft and mid-range projects like Oriana by Doshi Housing at Perungudi; Svasti by True Value Homes at Thoraipakkam; Lotus Pond by Vijayshanthi Group at Padur; Upscale by Hiranandani Group and Opaline Ph II by Olympia Group, both at Egattur.

During the same quarter, capital •values increased in the range of 2 - 9% QoQ across all micro-markets, except Nungambakkam and Anna Nagar, where capital values remained stable due to the high price bracket and low demand base.

Rents increased in the range of 4 - 10% •QoQ in most micro-markets, except Boat Club, Anna Nagar, Adyar, Beasant Nagar, T Nagar and Velachery where rents remained stable.

COLLIERS VIEW:• Going forward, we expect a moderate increase in capital values in the short term in the mid-range segment. The demand is expected to pick up further in this segment in the near term. Rental and capital values for premium properties will continue to remain stable cautious sentiments of investors as well as occupiers.

adya

r

anna

Nag

ar

Nung

amba

kkam

alw

arpe

t / r

a p

uram

vela

cher

y

shol

inga

nallu

r

siru

seri/

Kaz

ipat

tur

t Na

gar

Beas

ant N

agar

Boat

clu

b

Boat club

siruseri/ Kazipattur

velachery

sholinganallur

anna Nagar

t Nagar

adyarBeasant Nagar

Nugambakkam

alwarpet /r a puram


4Q 2013 1Q 2014F

capital value

rental value

New project

construction pace

BeNGaluru

SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

concorde amber off sarjapur road concorde Group 4Q 2016 4,000

Mantri lithos off hebbal Mantri Developers 4Q 2017 5,590

prestige lakeside habitat varthur road prestige Group 4Q 2017 4,770

purva Westend hosur Main road puravankara Developers 4Q 2017 4,890

skylark Ithaca Whitefield skylark Mansion 4Q 2017 3,930

sobha palladium Yemlur, old airport road sobha Developers 4Q 2016 8,560

In 4Q 2013, the Bengaluru residential •market witnessed reasonable demand for residential space, mainly in micro-markets like Yelahanka, Sarjapur, Whitefield and Thanisandra Road. However there were less projects launched this quarter as compared to previous three quarters.

In this quarter, the city witnessed •completion of various premium and mid-range projects, like Nitesh Central Park by Nitesh Estates at Bagalur Cross, Concorde South Scape by Concorde Group at E-City Phase 2, Patel Smondo Ville by Patel Realty at E-City Phase 1, and Chartered Jardin by Chartered Housing at RMV 2nd Stage.

Overall capital values in most of the •micro-markets remained stable during the quarter; however, a increase of 9 - 12% QoQ was witnessed in locations like Jayanagar, Bannerghatta Road, Whitefield and Yelahanka. This is because few projects have been launched at a premium price, making a significant change in the average capital price range.

Continuous demand from IT/ITeS sector •employees caused an upsurge of 1 - 7% in rents QoQ, across all micro-markets.

In a major land deal, Tata Housing has •purchased 20 acres of land in north Bengaluru from Alstom T&D India for a total consideration of INR120 crore to develop a luxury housing project.

COLLIERS VIEW:• The city’s premium residential market is expected to remain active, due to healthy residential demand for mid-range and premium housing, accompanied by full-on construction activities. Looking at the positive outlook, we anticipate that capital values will increase further from 2 to 4% QoQ across all micro-markets.

0

4,000

8,000

12,000

16,000

24,000

28,000

20,000

32,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

14f

1Q20

11

3Q20

11

25,000

20,000

15,000

5,000

10,000

0

Bengaluru

Jayanagar

central

palaceorchard

cooke town

airport road

Indiranagar

Koramangala

Whitefield

Yelahanka

Bannerghatta road

80

60

40

20

0

INr

per

sq.ft

.









airport road 5,000 - 7,000

Bannerghatta road 4,200 - 6,000

Whitefield 4,400 - 6,000

Yelahanka 3,500 - 5,000


Yela

hank

a

Bann

ergh

atta

roa

d

airp

ort r

oad

airp

ort r

oad

Whi

tefie

ld

Jaya

naga

r

cook

e to

wn

Kora

man

gala

Indi

rana

gar

pala

ce o

rcha

rd

cent

ral

central

YelahankaKoramangala

Indiranagar

Jayanagar

Bannerghatta road

palace orchard

cooke town

airport road

Whitefield

9

4Q 2013 1Q 2014F

capital value

rental value

New project

construction pace

KolKata

0

10,000

20,000

30,000

40,000

60,000

70,000

50,000

80,000

INr

per

sq.ft

.IN

r pe

r sq

.ft. p

er m

onth

1Q20

08

3Q20

08

3Q20

09

1Q20

09

1Q20

10

3Q20

10

1Q20

12

3Q20

12

1Q20

13

3Q20

13

3Q20

14f

1Q20

14f

1Q20

11

3Q20

11

20,000

8,000

10,000

18,000

16,000

12,000

2,000

4,000

6,000

0

Kolkata

50

40

30

20

10

0

INr

per

sq.ft

.









tollygunge 3,600 - 4,800

Behela 2,900 - 3,700

salt lake 4,000 - 6,000

eM Bypass 4,000 - 7,000

New town -rajarhat 3,200 - 4,600


SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

curiocity action area-III realtech Nirman 4Q 2016 4,150

Ideal aquaview Mahishbatan Ideal Group 4Q 2016 3,700

Ivory tower tollygunj Ivory Group 4Q 2015 4,000

Magnolia skyview rajarhat Magnolia Group 4Q 2016 3,200

North Grande Belghariya expressway Mounthill realty 4Q 2016 3,600

sucasa twins Norendrapur rupayan construc-tion pvt ltd 4Q 2015 2,900

Reasonable demand was witnessed •during the quarter, primarily in mid-range micro-markets located in South and North Kolkata. Most of this demand has come from end users.

During 4Q 2013, the Kolkata residential •market saw many new launches especially in micro-markets like Rajarhat Action Area-III, Mahishbathan, Tollygunj, Narendrapur and Belghariya Expressway. Most of these projects were launched in the affordable and mid-ranges and were priced in the range of INR2,900 - 4,150 per sq ft.

Construction activities remained •moderate resulting in completion of few projects / parts of the projects during the last quarter of 2013, including Meera Garden by Rajat Group at Madhyamgram and Tirumani by Mani Group at Ballygunje.

Capital values in the premium residential •market remained stable in almost all micro-markets, except Alipore and Ballygunge where around a 3% QoQ increase was witnessed during the quarter. On the other hand, rents rose in the range of 1 - 4% QoQ in almost all micro-markets, except PA Shah Road, Loudon Street, Ballygunge and VIP Road where rents remained stable, due to low base demand and limited availability.

COLLIERS VIEW:• Many mid-range and affordable residential projects were launched in the peripheral locations and the city witnessed increasing activity in the mid-range segment. This could be due to smaller ticket size and affordability. Looking forward, capital values are expected to rise marginally, especially in the outskirt micro-markets due to demand from end-users.

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Demand for residential units in Pune •continued to remain stable and the city witnessed launch of a number of mid-range projects in the price range of INR 4,500 to 5,500 per sq ft. However, few premium projects like “The Palladium” by Guardian Developers at Kothrud, “Sanctum” by Kumar Properties at Baner, and “Panchshil One North” by Panchshil Realty at Hadapsar, were priced in the range of INR9,900 to INR14,900 per sq ft.

During the surveyed quarter, construction •activities remained slow and thus no known projects / parts of projects saw completion. Going ahead, construction activities are likely to improve.

Capital values in micro markets like •Kalyani Nagar, Viman Nagar, Kharadi, Deccan, Camp, Boat Club, Pimpri-Chinchwad and Chakan saw a marginal increase in the range of 1% to 3% quarter-on-quarter (QoQ). The rest of all micro markets remained stable.

In 4Q 2013, the local government hiked •the Ready Reckoner (RR) rates in an average range of 10% to 20% in almost all the micro markets. Capital values are set to increase mainly in locations like Koregaon Park, Pimple Gurav and Pimpri-Chinchwad, where a sharp increase in rates was witnessed.

COLLIERS VIEW:• The Pune residential market saw many new launches in both premium and mid segments. Continuous demand from end-users and investors was witnessed and is expected to continue in the coming few quarters. In anticipation of reasonable demand, capital values are expected to rise in the mid-range and affordable housing locations like Pimpri-Chinchwad, Chakan and Kondhwa in the range of 2% to 3% on a quarterly basis.

4Q 2013 1Q 2014F

capital value

rental value

New project

construction pace

puNe

SELECT NEW PROJECTS



RATE (PER SQ.FT.)**

Bramha skycity Dhanori Bramha realty & Infrastructure 3Q 2015 4,550 - 4,600

eastern ranges phase II Keshav Nagar phadnis properties 4Q 2015 5,200

Guardian the palladium Kothrud Guardian Developers 1Q 2017 14,900

Nyati evita lohegaon Nyati Group 4Q 2016 4,500

panchshil one North hadapsar panchshil realty 4Q 2016 9,900

sanctum Baner Kumar properties 1Q 2017 12,000

0

10,000

20,000

30,000

40,000

60,000

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Kalyani Nagar/viman Nagar/Kharadi

5,000 - 12,000

Baner/hinjewadi/Wakad/pashan 5,000 - 12,000

Kothrud/Bavdhan/Wajre 3,800 - 6,000

NIBM/undri/Kondhwa 3,800 - 5,000

pimpri/chinchwad/chakan 3,000 - 4,500


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Deccan/camp/Boat club/central puneMagarpatta/hadapsar

Baner/hinjewadi/Wakad/pashan

11

MumbaiThe high-end residential real estate markets in Mumbai include Malabar Hill, Altamount Road, Carmichael Road, Napean Sea Road, Breach Candy, Colaba, Cuffe Parade, Prabhadevi, Worli, Bandra, Khar, Santacruz, Juhu and Powai.

DelhiThe prime residential areas in Delhi are in the South region and comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan and Central Delhi locations. These areas enjoy proximity to embassies, the airport and central commercial areas - Connaught Place.

GurgaonThe prime residential locations of Gurgaon include Golf Course Road, DLF Phase I, Sushant Lok and Sohna Road. The Delhi- Jaipur Highway (NH-8) is also emerging as a preferred residential location owing to its proximity to the national capital.

NOIDANOIDA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and Taj Express Highway.

ChennaiThe prime residential areas in Chennai include Boat Club, R.A.Puram, MRC Nagar, Thiruvanmiyur, Valmiki Nagar and Besant Nagar, R.A Puram, Mylapore and Adyar in South Chennai, Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, T. Nagar in Central Chennai; and Anna Nagar, Kilpauk in North West Chennai.

Bengaluru (Bangalore)The residential market of Bengaluru comprises both apartments and independent residences. Currently, high-end residential developments are mainly concentrated along the CBD, and Eastern and South precincts of the city. Recently, Northern Bengaluru has also witnessed a spree of realty activity facilitated by the new International Airport at Devanhalli.

KolkataThe prime residential areas in Kolkata include PA Shah Road, Tollygunge and Bhawanipur in South Kolkata, Alipore and Behala in South-west Kolkata, Loudon Street and Ballygunge in Central Kolkata; and Salt Lake, EM Bypass and VIP Road in North Kolkata.

Pune The prime residential areas in Pune include Kalyani Nagar, Viman Nagar, Boat Club Road, NIBM Road, Magarpatta, Hadapsar, Koregaon Park. Recently, increased activities has been witnessed in Pimpri-Chinchwad, Baner-Pashan and Kondhwa.

Residential Submarkets

cItY BaroMeters

Increasing as compared to previous quarter

Decreasing as compared to previous quarter

Remained stable from previous quarter


Copyright © 2014 Colliers International.

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

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Primary Authors:

Surabhi Arora I Associate Director Research

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Mumbai:[email protected]

Delhi / NCR: [email protected]

Amit Oberoi I National DirectorValuation & Advisory Services & [email protected]

Sachin Sharma I Assistant [email protected]

Technopolis Building, 1st Floor, DLF Golf Course Road, Sector 54, Gurgaon - 122 002TEL +91 124 456 7500

Bengaluru:[email protected]

Pune:[email protected]

Chennai:[email protected]

Kolkata: [email protected]

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Real Estate - Feb 2014

Transcript of Real Estate - Feb 2014