Quarter 2, 2013

Transcription

Quarter 2, 2013

PROPERTY
INSIGHTS
India
Quarter 2, 2013
Rise In Launches, Pick Up In Absorption
INDIA MARKET OVERVIEW
India witnessed a slight improvement of 0.3
GROSS DOMESTIC PRODUCT GROWTH RATE
percentage point in growth rate which was noted at
the least in past ten years. Following a similar trend
the construction sector registered an annual growth
Growth Rate (%)
4.8% in the last quarter (January-March) of FY 13,
aggregating to a yearly growth rate of 5.0% in 2012-13,
rate of 4.3% which was a drop of 1.3% compared to
last year. Meanwhile, the services and manufacturing
sectors registered a growth of 8.6% and 1.2%
respectively in 2012-13, a significant decline in
comparison to previous year mostly owing to demand
and supply side constraints. Other sectors like
agriculture, ‘community, social and personal service’,
electricity, ‘financing, insurance, real estate and
business services’ witnessed a quarterly growth of
1.4%, 4.0%, 2.8%, and 9.1% respectively.
Nevertheless, construction sector made a significant
Source: Central Statistical Organisation, Govt. of India
the economy, the Reserve Bank of India slashed repo
rate by 25 basis points to 7.25% during its periodic
monetary policy review. The policy review also stated
that GDP growth is expected to improve upto 5.7% in
2013-14 owing to an anticipated increase of economic
activity during second half of 2013.
Although, the slow economic growth resulted in
improvement over the quarter, with quarterly growth
cautious sentiments and led to a subdued demand
rising from 2.9% to 4.4% in Q2 2013. The second
trend by the occupiers in the beginning of the year, the
quarter also witnessed Indian Rupee sliding to a
second quarter witnessed improvement in the total
record low of INR 60.7 against US Dollar. Rupee
office space absorption. The second quarter of 2013
depreciation will aid export activities by making them
recorded a net absorption of approximately 7.2 msf
more competitive and helping exporters widen their
across top eight cities*, which was almost double
profit margin. Conversely, it will put upward pressure
compared to first quarter of this year. However, slow
on cost of imports and hence widen country’s current
performance of Q1 2013, noted at 3.6 msf of net
account deficit, which in turn can have severe effects
absorption led to a dip of around 36% year on year
on inflation rate. In its efforts to maintain liquidity in
(half-year comparison), which in turn resulted in
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overall decline in total absorption for first half of the
95% indicating continued interest of retailers for
year. While Bengaluru witnessed the highest gross
quality spaces. Meanwhile, residential launches
absorption of nearly 2.9 msf, Mumbai and Bengaluru
across top eight cities registered quarter on quarter
registered high net absorption amounting to over 1.6
increase of over 32%. NCR witnessed the highest
msf each this quarter. On the other hand, an increase
number of launches contributing around 28% of the
of around 23% was noted in supply figures adding to
total new launches. Mumbai and Bengaluru witnessed
nearly 9.7 msf across top eight cities. Chennai saw the
around 21% of the total launches in each city. In terms
highest infusion of supply with around 2.4 msf of
of capital appreciation in residential values,
office space getting ready followed by Mumbai that
Hyderabad emerged as the biggest gainer with values
noted nearly 2.2 msf of space offered for occupancy.
appreciating in the range of 5-22% primarily due to
The retail market witnessed opening of two new malls,
revision of guidance values effective from 1st of April
one mall each in Mumbai and Chennai adding a total of
2013. Select locations in Bengaluru too witnessed rise
1.94 msf to the existing mall inventory. Both of the
in capital value in the range of 15-21% owing to limited
malls got operational with occupancy level of over
supply and higher land acquisition costs.
Trends & Updates
Economic Trends
The Wholesale Price Index (WPI) dropped to 7.3%
EXCHANGE RATE MOVEMENT (INR/USD)
from 8.9% in the previous year, while the Consumer
Price Index (CPI) recorded a double digit figure of
Rate by 25 basis points in June to 7.25% from 7.5%
citing peaking food inflation and declining growth as
INR/USD
10.2%. Meanwhile, Reserve Bank of India cut the Repo
the major concerns.
The fourth quarter of FY 13 witnessed weak
performance of input sectors leading to a
corresponding ripple effect on the output sectors.
Source: RBI
BSE REALTY INDEX
GDP of input sectors like mining declined by nearly 3
percentage points quarterly. Growth rate of
4.5% in previous quarter and that of agriculture
sector grew at lower level of mere 1.4%. Power
INDEX
‘electricity, gas and water supply’ dipped to 2.8% from
generation has been affected badly due to continued
decline in mining output. Manufacturing sector on the
other hand registered a low year on year growth of
1.2%. Increasing input costs coupled with weak
exports have also hurt the manufacturing sector.
Source: BSE
FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR
Further, the quarter noticed Indian Rupee
Dollar. Rupee depreciation has resulted in a surge of
interest servicing costs for companies with forex debt.
INR Crore
depreciating to a record low of INR 60.7 against US
On the other hand, this will also benefit exporters in
raking in better profits provided the earlier agreed
rates are not re-negotiated.
*
Top eight cities include NCR, Mumbai, Bengaluru , Chennai, Kolkata, Hyderabad, Pune and Ahmedabad
Source: Dept. of Industrial Policy & Promotion, Govt. of India
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The BSE Realty Index had fallen by 269 points to
million with construction development sector
1,511 points by June end as compared to that in March,
accounting to around 6% of the total FDI. The FDI
2013. This 15.1% decline quarter on quarter can be
inflow in the construction development sector
primarily attributed to cautious buyer sentiment.
recorded a quarter on quarter decline of around 45%.
As per Department for Industrial Policy &
Promotion (DIPP), Foreign Direct Investment (FDI)
This decline was primarily due to slower economic
growth and cautious investor mood.
inflows in India for Q4 FY 13 was noted at INR 222,000
Residential Trends
Select cities saw fluctuation in rental and capital
RESIDENTIAL CAPITAL VALUES GROWTH INDEX
values during the quarter due to change in demand
and supply dynamics and investment sentiment.
Hyderabad’s submarkets saw the maximum
variation in capital values ranging from 5-22% owing
to revision of guidance values. Also, select micro
markets of Bengaluru witnessed rise in capital
values in the range of 15-21% in wake of limited
supply and higher land acquisition costs. Meanwhile,
some submarkets in Kolkata and Mumbai witnessed
moderate capital appreciation in the range of 3-9%
in Q2 13. NCR on the contrary saw correction in the
Source: Cushman & Wakefield Research
NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 2Q 2013
range of 5-9% in the high-end segment in the back
28%
drop of slow transaction activity coupled with
cautious buyer sentiments. Rental values on the
other hand witnessed uptrend in the range of 2-9%
in select micro markets of Hyderabad and Kolkata.
price points.
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However, select high-end submarkets of NCR and
Chennai witnessed a drop in rental values in the
Approximately 52,000 units were launched
The second quarter of 2013 also witnessed Union
across the eight major cities in Q2 2013. NCR
Cabinet approving of the ‘Real Estate Regulatory
accounted for majority of new launches contributing
Bill’ draft. The bill intends to protect buyers from
to nearly 28% of the total number; the city saw units
unscrupulous buyers by means of higher
being launched mainly in mid-end segment. Mumbai
transparency and accountability levels from
and Bengaluru registered the next highest number
developers. The bill proposes setting up of a ‘Real
of launches accounting for nearly 21% of the total
Estate Regulatory Authority’ in each state wherein
launches each and crossing 10,500 units mark. NCR,
developers will have to register before launching any
Mumbai, Chennai and Kolkata too saw an increase of
project for sale. Further, the developers will be
almost 60%, 50%, 40% and 48% respectively in
required to disclose details about land status, layout
the number of launches quarter on quarter. On the
plans and approvals, to name a few. This will help in
other hand Pune registered a negative growth of
providing higher clarity on project standard and
34% quarter on quarter and Bengaluru also
their completion timelines; thus making the buyers
recorded a marginal drop of 9%.
more aware and safeguarding their interests.
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Index
Ahmedabad...................................................................................
5
Bengaluru...................................................................................... 8
Chandigarh.................................................................................... 14
Chennai.......................................................................................... 17
Hyderabad..................................................................................... 21
Kolkata........................................................................................... 25
Mumbai.......................................................................................... 30
National Capital Region.............................................................. 35
Pune............................................................................................... 40
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Ahmedabad
Market Overview
Ahmedabad witnessed healthy quantum of
READY RESIDENTIAL PROPERTY VALUES IN JUNE '13
l a u n c h es d u r i n g t h e se co n d q u a r te r a t
approximately 1,500 units. This is a substantial
increase over the previous quarter where only 200
units were launched. Supply was primarily at
peripheral locations with 81% of the total launches
in Sarkhej Gandhinagar (S.G) Highway. With sluggish
sales activity in the mid and high-end segments,
developers have now shifted focus to affordable
housing as it has witnessed healthy sales over the
Represents Mid and High End segments
past year. Around 80% of the total new launches
catered to the affordable segment with developers
like Godrej and Adani launching new projects. With
highest share in absorption at 20%, 18% and 17%
stable demand, the rental values continued to
respectively.
remain stable across the city.
Prominent main street locations like C.G. Road,
Ahmedabad witnessed an overall net absorption
Law Garden, Prahladnagar and Satellite Road have
of 81,000 square feet (sf) during the second quarter
limited options of quality retail space; as a result
of the year, close to 80% of which were in Grade A
transaction activity remained low at these locations
developments. Lower demand of office space has
and rentals were stable. Enquiries for main street
resulted in net absorption declining by 66%
locations remained healthy during the quarter,
compared to the second quarter of 2012 and 58%
especially from the F&B and apparel segments. With
compared to the previous quarter. The suburban
S.G. Highway growing as a residential hotspot,
locations of S.G. Highway (53%) and Prahladnagar
retailers are now looking at expanding in these
(37%) witnessed the majority of the leasing activity.
locations. Retailers in the city continue to favour
Average transaction size was in the range of 6,000-
main-street locations over malls due to higher
7,000 sf. The manufacturing, banking, financial
potential for revenue as customers still prefer to do
services and insurance and IT/ITeS sectors had the
most of the shopping on the main streets.
Trends & Updates
Ready Residential Property Update
Demand for ready residential property remained
segments. With a ticket size between INR 25 lacs and
stable in the city especially from end-users. Prices
40 lacs, end-users have shown preference for
for ready properties also continued to remain stable
locations on the S.G. Highway, Bopal, Naroda, Motra
across all micro-markets in the mid and high-end
and Ranip.
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Average Capital Values – High End (INR '000/sf)
Location
2010
2011
2012
1Q 2013
2Q 2013
Satellite
4.0 - 4.8
4.3 - 6.0
4.3 - 6.0
4.3 - 6.0
4.3 - 6.0
Vastrapur
3.7 - 4.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
S.G.Highway
3.7 - 4.3
3.7 - 4.5
3.7 - 4.5
3.7 - 4.5
3.7 - 4.5
Prahlad Nagar
4.2 - 5.3
4.2 - 6.0
4.2 - 6.0
4.2 - 6.2
4.2 - 6.2
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)
Location
2010
2011
2012
1Q 2013
2Q 2013
Satellite
2.8 - 3.8
2.8 - 4.3
2.8 - 4.3
2.8 - 4.3
2.8 - 4.3
Vastrapur
2.6 - 3.5
2.6 - 3.8
2.6 - 3.8
2.6 - 3.9
2.6 - 3.9
S.G.Highway
3.0 - 3.8
3.3 - 4.3
3.3 - 4.3
3.3 - 4.3
3.3 - 4.3
Prahlad Nagar
2.8 - 3.6
3.2 - 4.2
3.2 - 4.2
3.2 - 4.3
3.2 - 4.3
Note: The above values for mid-end segment typically include units of 1,200-1,800 sf
New Residential Launches
Good momentum in new launches was witnessed
of 1BHK with a ticket size of INR 16-20 lacs.
during the second quarter in the city. A number of
Additionally developers are considering to launch
units were launched in the affordable segment
new projects as the draft GDCR (General
during the quarter in S.G. Highway and S.P. Ring
Development Control Regulations) which proposes
Road; these projects primarily have a configuration
to increase FSI is expected to be approved.
Project Name
Developer
Location
Number of Units*
Type
Area of Units (sf)
Adani Pratham
Adani Group
S.G. Highway
544
Apartment
1 BHK: 668
Godrej Garden City
Vrindavan
Godrej
Developers
S.G. Highway
480
Apartment
1 BHK: 600
Swaminarayan Park 4
Dharmadev Infra
S.P Ring Road
200
Apartment
1 BHK: 621
Godrej Garden City
Phase 5 Carmel
Godrej
Developers
S.G. Highway
192
Apartment
2 BHK: 1,100
3 BHK: 2,211
Swagat Echo
Swagat Group
Gandhinagar
90
Apartment
3 BHK:1, 575-1, 665
* Estimated and as per market information
Under Construction Residential Property Update
Peripheral locations in western and southern
INR 15-30 lacs have witnessed considerable demand.
Ahmedabad like Bopal, Vatwa, and Vaishnodevi
With a number of projects like Godrej Garden City,
witnessed healthy construction activity during the
Agora residency, Gala Haven, etc nearing
quarter. With low ticket sized units being available in
completion, project deliveries are expected to
these markets, end-user activity was noted to be
remain healthy during the year.
quite healthy. Apartments with a ticket-size between
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Commercial Office Sector
With no supply during the quarter and leasing
declining by 2-3% during the quarter. High vacancies
activity being limited, Grade A vacancy declined by
have also negatively impacted investor interest in
1.5 percentage points q-o-q and was recorded at 33%
commercial office space. Rentals at C.G. Road and
at the end of the second quarter. High availabilities in
Ashram Road continued to remain stable due to low
S.G. Highway and Prahladnagar resulted in rentals
leasing activity.
Retail Sector
With Vastrapur being the only micro market with
street locations during 2Q 2013. Mall vacancies
low mall vacancies and the city lacking quality mall
declined by 3.8% over the last quarter and were
space, retailers have a few options to choose from.
recorded at 29.2% due to some leasing activity in
Limited transaction activity resulted in rentals
malls along the S.G. Highway and lack of mall supply.
continuing to remain stable across malls and main
Outlook
Residential capital values in the city are expected
regulations expected to come into effect, developers
to witness downward pressure due to stagnant
are evaluating plans for commercial office
demand. The new development control rules are
developments on the Sabarmati river front. If
expected to be approved in the second half of the
initiated these developments are likely to be
year which is likely to bring relief to developers by
completed only post 2015.
offering higher floor space index resulting in higher
development potential. This could also help bring
down prices as developers may pass on some benefit
to buyers.
With limited availability of quality space in
prominent main street locations, rental values at
C.G. Road, Prahladnagar and Law Garden are
expected to witness appreciation in the upcoming
Ahmedabad is expected to witness a healthy
quarters. Mall rentals on S.G. Highway will remain
office supply of 600,000 sf during the third quarter.
under pressure due to high vacancy levels. Going
This is expected to put additional pressure on rentals
ahead, vacancies are expected to decline with no
especially at S.G. Highway as vacancies are expected
new mall under-construction in the city.
to rise further. With the new development control
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Bengaluru
Market Overview
In Bengaluru residential market, the Eastern
micro market remained a favoured residential
launch destination witnessing over 31% of the total
launches in this quarter, primarily in affordable and
mid-end segments. Also, the micro-market
experienced an appreciation of 5% for the mid
segment properties due to continued demand from
Information Technology – Business Process
Management (IT-BPM) sector employees. Further, in
the mid-end segment, locations like Central and Off
Central registered an increase in the range of 15-
21%, while locations like North-West and South-West
registered an appreciation in the range of 5-8% over
this quarter belonged to commercial space category
the quarter. North-West sub market was the only
instead of being exclusively intended for IT-BPM
gainer in the high-end category, recording a capital
sector occupiers.
value rise of 3% quarter on quarter.
The commercial real estate market of the city
Retail market of the city witnessed no new mall
supply in the second quarter of the year. Meanwhile,
recorded supply of 1.6 million square feet (msf) of
prominent malls in locations like Magrath Road and
new office space in the second quarter of the year.
Kormangala witnessed addition of some new brands
94% of the total supply came in the peripheral
belonging to apparel and Food and Beverage (F&B)
locations of Outer Ring Road owing to attractiveness
category owing to the ongoing churn in these malls.
of this location among corporate occupiers.
Further, established main streets like MG Road,
Proximity to residential catchment and good
Brigade Road, Commercial Street, Kormangala 80
connectivity to central and suburban business
Feet Road and New BEL Road witnessed persistent
districts are major driving factors behind
demand from international and domestic apparel,
attractiveness of this micro market. All of the supply
accessories and F&B retailers.
Trends And Updates
Rental levels across the city remained stable in
market only. North-West, Central and Off-Central
the second quarter. Capital values on the other hand
locations experienced price hike in wake of higher
registered an uptrend in select locations. Mid-end
land acquisition costs and limited residential supply
properties in locations like North-West, East and
in these areas. Properties located in the Eastern sub
South-West registered a quarterly capital
market saw prices moving northwards due to
appreciation of 5-8% along with locations like
healthy demand from IT population. Developed
Central and Off Central witnessing increase of 15-
social infrastructure and proximity to workplaces
21%. In the high-end segment, appreciation of
fuelled in demand for properties in South-West
capital values was recorded in North-West micro
micro market leading to rise in capital values.
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Average Capital Values – High-end (INR’000/sf)
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
Central
14.0 - 18.0
12.0 - 14.5
13.5 - 17.5
14.0 - 18.0
18.0 - 28.0
18.0 - 30.0
18.0 - 30.0
South
7.0 - 9.0
6.0 - 8.5
6.0 - 9.5
6.5 - 10.0
6.5 - 10.0
6.5 - 10.0
6.5 - 10.0
Off-Central
6.5 - 7.5
5.0 - 6.8
5.0 - 7.0
6.0 - 8.5
7.0 - 9.0
7.0 - 10.0
7.0 - 10.0
East
6.5 - 9.0
5.6 - 7.0
6.5 - 7.5
6.8 - 8.0
6.5 - 9.0
6.5 - 10.0
6.5 - 10.0
North
6.0 - 8.0
5.5 - 7.0
5.5 - 7.0
6.5 - 8.0
6.5 - 8.2
6.5 - 9.5
6.5 - 9.5
Location
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)
Location
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
Central
5.8 - 7.0
5.0 - 6.0
5.5 - 7.0
6.0 - 7.5
6.0 - 8.0
6.0 - 8.0
7.0 - 10.0
East
2.7 - 3.1
2.4 - 2.7
2.7 - 3.1
3.2 - 3.8
3.8 - 4.8
3.8 - 4.8
4.0 - 5.0
South-East
2.9 - 4.0
2.5 - 3.2
2.8 - 4.0
3.4 - 5.0
4.0 - 5.5
4.0 - 5.5
4.0 - 5.5
North
3.0 - 4.0
2.8 - 4.0
2.8 - 4.4
3.0 - 4.8
3.5 - 5.5
3.5 - 5.5
6.0 - 9.0
South
5.0 - 6.5
4.6 - 5.7
4.8 - 6.0
5.0 - 6.5
6.0 - 9.0
6.0 - 9.0
3.5 - 5.5
South-West
2.8 - 4.2
2.7 - 3.9
3.2 - 4.5
3.6 - 5.0
4.0 - 5.5
4.0 - 5.8
4.5 - 6.0
Off-Central*
3.5 - 6.0
3.3 - 5.7
4.0 - 6.2
4.5 - 6.7
5.0 - 7.5
5.0 - 8.0
6.0 - 9.0
Off-Central**
4.0 - 6.0
3.7 - 5.7
3.8 - 6.2
4.3 - 6.7
5.0 - 7.0
5.0 - 7.0
6.0 - 8.0
North-West
4.2 - 5.8
3.5 - 5.2
3.8 - 5.6
4.3 - 6.2
4.5 - 6.5
4.5 - 6.5
5.0 - 6.5
Note: The above values for mid-end segment typically include units of 1,600-2,000 sf.
Key to locations:
High End Segment:
East: Marathalli, Whitefield, Old Airport Road
Central: Lavelle Road, Off Palace Road, Off Cunnigham
South-East: Sarjapur Road, Outer Ring Road, HSR Layout
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
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
Mid End Segment:
Central: Brunton Road, Artillery Road, Ali Askar Road,
Town, etc
North-West: Malleshwaram, Rajajinagar
Cunningham Road
9
Over 10,500 residential units were launched in
developers preferring these locations for new
the second quarter of the year. Accounting for 31%
project launches. Mid-end segment accounted for
of the total launches, East Bengaluru registered the
the largest chunk of launches adding up to almost
highest number of launches. Northern submarket
50% of the total launches followed by the affordable
witnessed the next highest number of launches with
category with 34% of the launches and remaining in
around 27% of the total launches followed by South-
the high-end segment. Meanwhile, select developers
East Bengaluru recording 19% of the total launches.
also launched theme based projects with special
Healthy demand from IT population resulted in
focus on senior citizen and retired people.
Project Name
Developer
Location
Number of Units*
Type
Area of Units (in sf)
E.City
GM Infinite
Near Electronic City
970
Apartment
Studio: 435
1 BHK: 625
2 BHK: 1,025 to 1,070
3 BHK: 1,350 to 1,500
Nandi Citadel
Nandi Housing
Bannerghatta Road
710
Apartment
2 BHK: 1,050
3 BHK: 1,500 to 1,650
Pashmina
Brookwoods (Ph2)
Paschmina
Developers
Off KR Puram
700
Apartment
1 BHK: 500
2 BHK: 625
Brigade Golden
Triangle
Brigade
Developers
Old Madras Road
670
Apartment
2 BHK: 1,210
3 BHK: 1,490 to 1,630
4 BHK: 2,010
Fortuna Viva
Fortuna Developers
Yelahanka
560
Apartment
2 BHK: 1,070
3 BHK: 1,500
4 BHK: 3,051
Prestige Augusta
Gold Villa
Prestige Developers
Hennur-Horamavu
Cross
460
Villa
3 BHK: 2,400 to 3,545
4 BHK: 4,300
Sobha Santorini
Sobha Developers
Thanisandara Road
455
Apartment
2 BHK: 1,340 to 1,400
3 BHK: 1,700 to 1,740
Trifecta Esplanade
Trifecta Projects
Whitefield
426
Apartment
2 BHK: 990
3 BHK: 1,329 to 1,460
Vasanthi Avante
Vansanthi
Developers
Hebbal
380
Apartment
2 BHK: 1,074
3 BHK: 1,616
Fortuna Windflower
Fortuna Developers
Sahakarnagar
360
Apartment
2 BHK: 1,263
3 BHK: 1,758 to 1,893
4 BHK: 2,400
PSR Aster
PSR Constructions
Group
Sarjapur Road
334
Apartment
1 BHK; 635
2 BHK: 970 to 1,070
3 BHK: 1,340
Lotus Pond
SSVR Developers
Whitefield
308
Apartment
2 BHK: 1,010 to 1,205
3 BHK: 1,293
Uber Verdant
Mana Projects
Sarjapur Road
280
Apartment
2 BHK: 1,117 to 1,300
3 BHK: 1,834
SVS Palms
SVS Constructions
Marathahalli
272
Apartment
2 BHK: 990 to 1,251
3 BHK: 1,247 to 1,445
Mantri Webcity
Mantri Developers
Hennur Road
272
Apartment
2 BHK: 1,155 to 1,385
3 BHK: 1,445 to 1,740
VRR Nest
VRR Builders &
Developers
Electronic City
243
Apartment
2 BHK: 1,060 to 1,335
3 BHK: 14,70
SJR Bren Palms
SJR Developers
Off Kudlu Main Road
189
Apartment
2 BHK: 1,158
3 BHK: 1,655
10
Project Name
Developer
Location
Number of Units*
Type
Tata Riva
Tata
Tumkur Road
180
Apartment
1 BHK: 796
2 BHK: 1,187
Keerthi Regalia
Keerthi Estates
Sarjapur Road
180
Apartment
2 BHK: 1,220 to 1,320
3 BHK: 1,530 to 1,640
Horizon
Mahaveer
Developers
Whitefield
171
Apartment
3 BHK: 1,800
4 BHK: 4,000
Shalom
Gina Developers
K.R. Puram
170
Apartment
3 BHK: 1,650 to 2,185
Orchids
Prisha Properties
Off Thanisandara
Main Road
167
Apartment
2 BHK: 1,440 to 1,630
3 BHK: 2,050 to 3,150
4 BHK: 3,330,
Penthouse: 4,365 to 4,385
Peninsula Prakruthi
Peninsula Infra
Sarjapur Road
165
Villa
3 BHK: 1,200 to 2,400
Nishant Prime
Nishant Properies
Whitefield
159
Apartment
2 BHK: 1,021
3 BHK: 1,960
AMR Oaks
AMR Builders
Chandapura
Junction
150
Apartment
2 BHK: 950
Manor
VKC Developers
Marathahalli
150
Apartment
2 BHK: 1,219 to 1,275
3 BHK: 1,440 to 1,575
Blossom
Mantri Developers
Lalbagh
145
Apartment
3 BHK: 2,605 to 3,160
4 BHK: 3,635 to 3,810
5 BHK: 5,105 to 5,875
Mana Jardin
Mana Projects
Sarjapur Road
144
Apartment
2 BHK: 1,337 to 1,501
3 BHK: 1,523 to 1,691
Indradhanush
Maya Ventures
Kanakpura Road
128
Apartment
2 BHK: 1,622 to 1,753
3 BHK:- 2,080 to 2,473
The Grand Carmon
Address
India REIT Address
Makers
Sarjapur Road
109
Villa
3 BHK: 2,900 to 3,900
Embassy Grove
Embassy Group
Old Airport Road
106
Villa
4 BHK: 4,500 to 5,500
Sri Sai Icon
AMIGO Shelters
Off Sarjapur Road
100
Apartment
2 BHK: 1,107
3 BHK: 1,395 to 1,745
Brindavanam
SV Constructions
Marathahalli
100
Apartment
1 BHK: 725
2 BHK: 1,195
La Plazzo
KMB Developers
Sarjapur Road
92
Apartment
3 BHK- 2,900
5 BHK- 6,500
Naimisha
Mytheri Developers
Adugodi
81
Apartment
2 BHK: 1,200
3 BHK: 1,500
Vaastu Dew Flower
Vaastu Estates
Whitefield
76
Apartment
1 BHK: 695
2 BHK: 910
3 BHK: 1,275
4 BHK: 1,730
Geown Iris
Geown Properties
Whitefield
73
Apartment
2 BHK: 935
3 BHK: 1,505
Prelude
Regal
Old Madras Road
72
Apartment
2 BHK: 1,330 to 1,462
3 BHK: 1,664 to 1,790
Pueblo
Lalit Gangadar
Constructions
Sarjapur Road
64
Villa
4 BHK: 2,232 to 2,684
Sri Tirumala Splendor
EAPL Group
Housr Main Road
56
Apartment
3 BHK: 1,359 to 1,917
Vrushabadri Willows
S V Edifice
Hennur Road
50
Apartment
2 BHK: 1,250 to 1,330
3 BHK: 1,690 to 1,700
11
Project Name
Developer
Location
Number of Units*
Type
Soorya Pyda Palms
Soorya Properties
Whitefield
48
Apartment
2 BHK: 1,229
3 BHK: 1,492
Crescenta
MIMS
Whitefield
40
Villa
4 BHK: 3,100 to 3,800
Kristal Quartz 5
Kristal Group
Sarjapur Road
32
Apartment
2 BHK: 1,111 to 1,200
3 BHK: 1,350 to 1,411
Following the last quarter’s trend several
due to their proximity to areas with developed social
developers continued to offer no pre-EMI schemes to
infrastructure and IT hubs. Meanwhile, increased
attract buyers, wherein buyers have to pay 20% as the
enquiry levels from NRI buyers were witnessed for
booking amount and rest 80% need to be paid at the
under construction high-end properties in wake of
time of possession. Further under construction
rupee depreciating against dollar. Valmark Ananda on
properties in South-West market witnessed an
Bannerghatta Road, Bren Celestia on Sarjapur Road
appreciation of up to 11% in the capital values, followed
and Mantri Royale on Kanakpura Road are some of the
by East registering an uptrend of up to 12% primarily
projects nearing completion.
The office space market registered a significant
second quarter’s transactions had an average deal
increase in leasing activity, adding to 2.9 msf, of which
size of nearly 25,000 sf. The overall vacancy was
27% was pre-committed earlier. Net absorption too
recorded at 14.5%, registering a marginal dip of 0.2
saw a significant rise, increasing by over seven times
percentage point from the previous quarter. The
compared to the previous quarter, to 1.6 msf in2Q
quarter also saw some pre-commitments amounting
2013. IT-BPM sector continued to be the frontrunner in
to almost 1.9 msf, of which 74% is concentrated in the
leasing activities; accounting for over 46% of the
peripheral locations of ORR. Rental values for most
absorption followed by Manufacturing and Telecom
micro markets remained in similar ranges apart from
accounting for 18% and 6% of the total absorption
Suburban sub market registering a rise of rentals in
respectively. Barring a few large transactions
wake of healthy demand from IT-BPM companies for
admeasuring over 100,000 square feet (sf), the
second generation spaces.
Retail Sector
The rental levels remained stable for most malls
retailers shying away thereby putting downward
and main streets in the second quarter of 2013.
pressure on rentals in this location. On the other
However, Vittal Mallaya Road main street witnessed
hand, slowdown in retail activity coupled with
a drop of 5% in rentals as compared to last quarter.
paucity of quality retail space led to a dip of around
Non-availability of small ticket size options has lead
13% in Bannerghatta Road mall submarket.
12
Outlook
Residential real estate market is anticipated to
half of the year considering the quantum of Request
witness a stable trend for both rental and capital
for Proposals (RFPs) in the market currently. Further,
values for most micro markets in the next quarter.
the next quarter is expected to see rentals values
The North-West submarket is expected to see
within the current range.
rentals moving northwards for both mid as well as
high-end segments due to the upcoming metro,
developed social infrastructure and good
connectivity to central locations of the city. Driven
by continued investor interest North Bengaluru is
expected to witness an uptrend in capital values for
both mid and high-end properties.
In the retail segment, Vittal Mallaya Road and
Indiranagar 100 Feet Road main streets might
witness a dip in rentals due to non availability of
retail options of smaller ticket sizes. Bannerghatta
Road mall micro market may experience downward
pressure in rentals depending on any future
government announcement regarding metro
Going forward, office market is expected to see a
realignment. Rest of the micro markets for both
rise in leasing activity in anticipation of some larger
malls and main streets are anticipated to exhibit a
deals, which are expected to take place in second
stable rental trend in the coming quarter.
13
Chandigarh
Market Overview
The second quarter of 2013 witnessed subdued
demand for residential real estate across most of the
micro markets in Tri-City as cautious sentiments were
witnessed among both investors and end-users. Also,
the new residential projects launched during the
second quarter of the year were priced at par with the
last quarter’s market average. As a result, the capital
values remained consistent over the previous quarter.
The new projects launched in the mid-end segment
were mainly concentrated in Mohali micro market
whilst no new launches were witnessed in Mullanpur
and Dera Bassi micro markets.
quarter for office spaces in Tri-City.
The Tri-City during the second quarter of 2013
During 2Q 2013, healthy demand from both
witnessed a new grade A commercial office supply of
international and domestic retailers like Gas, Charles
400,000 sf in Industrial Area Phase-I. During 2Q 2013,
& Keith, Shoppers Stop and Guess to name a few was
engineering and manufacturing sectors had the major
witnessed, especially in the new mall at Industrial
share in leasing activity. The leasing activity during
Area Phase-I which has become operational in the last
the quarter mainly constituted of relocation and
quarter. The main streets witnessed a steady demand
consolidation. The higher vacancy rates along with
due to quality space options available in malls thus the
sluggish demand due to cautious occupiers’
main street rental values remained stable over the
sentiment resulted in stable rental values over the last
previous quarter.
Trends And Updates
The second quarter of 2013 witnessed consistent
quarter. This is mainly due to the sluggish demand
capital values for ready residential properties in
for ready residential properties resulting in low
high-end and mid-end segment in Tri-City over the
transaction activity.
Average Capital Values – High End (INR)
Location
3Q 2012
*
4Q 2012
1Q 2013
2Q 2013
Chandigarh Sector: 2-11
160,000 - 180,000/sqyd
160,000 - 180,000/sqyd
160,000 - 180,000/sqyd
160,000 - 180,000/sqyd
Chandigarh Sector: 28
140,000 - 170,000/sqyd
140,000 - 170,000/sqyd
140,000 - 170,000/sqyd
140,000 - 170,000/sqyd
Panchkula
110,000 - 145,000/sqyd
110,000 - 145,000/sqyd
110,000 - 145,000/sqyd
110,000 - 145,000/sqyd
Manimajra
13,000/sf
13,000/sf
13,000/sf
13,000/sf
Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villa *sqyd: Square Yard
14
Average Capital Values – Mid Range (INR/sf )
Location
3Q 2012
4Q 2012
1Q 2013
2Q 2013
Zirakpur
2,500 - 3,600
2,500 - 3,600
2,500 - 3,600
2,500 - 3,600
Mohali
3,000 - 4,000
3,000 - 4,000
3,000 - 4,000
3,000 - 4,000
Dera Bassi
3,000 - 3,200
3,000 - 3,200
3,000 - 3,200
3,000 - 3,200
Panchkula
2,700 - 3,300
2,700 - 3,300
2,700 - 3,300
2,700 - 3,300
Note: The above values for mid-segment apartments typically include units of 1,600-2,000 sf
Key to Locations:
High-end Segment:
Mid-end Segment:
Panchkula: Sectors 2, 4, 6, 7, 8, 9, 15
Mohali: Sectors - 114, 115, 127
Panchkula: Sector - 20
During 2Q 2013, the demand for new residential
witnessed launches in the housing market in the form
launches in Tri-City remained sluggish and the total
of plots and independent floors, the second quarter of
number of units launched was noted at approximately
the year witnessed launches mainly in the form of
284. Most of the new launches in the quarter were
apartments in mid-end segment to attract both end-
mainly in the mid-end segment targeting the middle
users and investors.
income group. Also, unlike the previous quarter which
Project Name
Developer
Location
Number of Units*
Type
Area of Units
Sandwood Opulencia
Sandwood
Sector-110,
Mohali
224
Apartments
3BHK: 1,950
4BHK: 2,600
Palm Village Phase-III
Bee Gee Buildtech
Sector-126,
Mohali
60
Apartments
3BHK: 2,180
*Estimated and as per market information
The peripheral micro markets of Tri-City namely
projects continued to remain unchanged over the
Mohali, Zirakpur, Kharar Road and Dera Bassi
previous quarter owing to a slowdown in demand in
witnessed steady construction activity. During 2Q
the housing market in Tri-City.
2013, the capital values of the under construction
15
The vacancy rates in both IT parks and SEZs in
CBD micro-market to SBD micro-market. Thus
the Tri-City remain unchanged over the previous
relocations constituted majority of leasing activity
quarter. This has resulted in a stable rental values for
during the quarter. Also, the rental values for
IT space at INR 45/sf/month. In order to reduce the
commercial office space remained stable over the
real estate costs due to slowdown in economy, a few
quarter at INR 70/sf/month.
occupiers during the quarter relocated from prime
Retail Sector
The demand for mall space conitnued to remain
in apparel/footwear, lifestyle and F&B categories, to
buoyant over the quarter. Increased enquiries were
name a few. The mall rentals witnessed no change
witnessed for the new mall space added during 2Q
over the quarter due to availability of space which
2013 from prominent international retailers primarily
matched the current demand.
Outlook
The Punjab Government has approved the
expected to continue primarily by the engineering
renaming of Mullanpur as New Chandigarh and plans
and manufacturing sectors. The new Grade A supply
to develop it as a model city with a new master plan
noted during 2Q 2013 would provide quality space
for the location. This would result in better
options for non-IT companies thereby keeping the
infrastructure facilities in the peripheral areas of Tri-
rental values for commercial office space steady
City, which would help in boosting demand for real
over the quarter.
estate in the location in the long term. However, in
the upcoming quarter the residential capital values
are expected to remain unchanged owing to limited
supply and demand.
The Tri-City will witness no new mall supply over the
next quarter. However, the last quarter of the year is
expected to witness a mall supply of 200,000 sf in
Industrial Area. Limited mall supply along with
The vacancy rates in the IT buildings are
availability of space in malls in Tri-City is expected to
expected to remain stable over the next quarter
keep mall rentals steady in the upcoming quarter. Also,
owing to sluggish demand and lack of any expected
the rentals on main streets are also likley to be stable.
suppply in the third quarter. The relocation activity is
16
Chennai
Market Overview
The Chennai residential market witnessed an
READY RESIDENTIAL PROPERTY VALUES IN JUNE ' 13
upward trend in 2Q 2013 as the city witnessed a 40%
rise in the new residential units being launched
across all categories. More than 3,200 new
residential units were launched in the last three
months across various micro markets such as
Mogappair, Rajiv Gandhi Salai and Grand Southern
Trunk Road. Mid-end segment dominated the
residential real estate scenario as 89% of the new
units launched belonged to this category. High-end
category also saw huge demand in some locations
like Nungambakkam and Anna Nagar where
msf came into the market out of which 96% was in
premium lifestyle projects are gaining a lot of
Suburban – Perungudi Taramani area.
interest amongst end users.
In the retail real estate market, Chennai
Chennai’s office market witnessed healthy
witnessed the opening of a mall admeasuring
absorption level noted at 1.4 msf in 2Q 2013 as
700,000 sf in Vadapalani with almost full occupancy
corporate occupiers consolidated and relocated
and with a strong presence of both domestic and
their business operations. Leasing activity remained
international brands like RMKV, The Body Shop,
strong for Grade A stock and micromarkets such as
Marks and Spencer, etc. Increased absorption from
Suburban-Perungudi Taramani, Peripheral saw
apparel and footwear retailers led to a decrease of
nearly 90% of net absoprtion. CBD and Suburban –
0.30 percentage point in the overall mall vacancy
Guindy followed thereafter. Total new supply of 2.4
levels in the city.
Trends And Updates
Demand for ready residential properties
residential segment saw almost a 5% q-o-q increase
continued to remain stable for most micro markets
in capital values in R.A. Puram as demand remained
in the second quarter with the exception of East
healthy for luxury residential apartments. Some
Coast Raod (ECR) where demand remained low due
prominent projects like Metrozone (Anna Nagar),
to higher prices. As a result of some construction
Akshaya 36 Carat (Kilpauk), and Hiranandani
completions, mainly in the mid-end category, the
Upscale (Rajiv Gandhi Salai) have started handing
capital values also depicted a stable trend. High – end
over units to customers in 2Q 2013.
17
Average Capital Values – High End (INR ‘000/sf)
Location
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
Boat Club
18.0 - 24.0
18.0 - 20.0
18.0 - 23.0
20.0 - 25.0
23.0 - 27.0
23.0 - 30.0
23.0 - 30.0
R.A Puram*
13.0 - 15.0
13.0 - 15.0
13.0 - 16.5
14.0 - 17.0
15.0 - 19.0
17.0 - 21.0
17.0 - 23.0
Besant Nagar
NA
NA
NA
12.5 - 13.5
13.0 - 14.5
13.5 - 15.0
13.5 - 15.0
Kotturpuram
NA
NA
NA
12.0 - 14.0
14.0 - 16.0
14.0 - 18.5
14.0 - 18.5
Adyar
5.5 - 10.0
5.5 - 9.5
8.0 - 12.0
11.5 - 13.5
13.0 - 14.5
13.0 - 15.0
13.0 - 15.0
Poes Garden**
14.5 - 20.0
14.5 - 18.0
14.5 - 20.0
17.5 - 24.5
18.5 - 25.0
20.5 - 28.0
20.5 - 28.0
Nungambakkam
13.0 - 16.0
13.0 - 16.0
13.0 - 16.5
13.0 - 17.0
17.0 - 20.0
14.0 - 25.0
14.0 - 25.0
Anna Nagar
6.0 - 9.0
6.0 - 9.0
7.5 - 10.5
8.0 - 11.5
12.0 - 14.0
12.0 - 17.0
12.0 - 17.0
Kilpauk
4.0 - 8.0
4.0 - 8.0
8.0 - 12.0
9.0 - 15.0
12.0 - 15.0
12.0 - 15.0
12.0 - 15.0
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
Average Capital Values – Mid Segment (INR ’000/sf)
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
Adyar
4.5 - 6.5
4.5 - 6.5
6.0 - 8.5
8.0 - 11.0
9.0 - 13.0
10.0 - 14.0
10.0 - 14.0
Rajiv Gandhi Salai
(Perungudi)
2.5 - 3.6
2.5 - 2.8
3.5 - 4.5
4.0 - 5.5
5.0 - 6.3
5.0 - 6.3
5.0 - 6.3
Velachery
3.8 - 4.2
3.5 - 4.0
3.5 - 5.0
3.5 - 5.5
4.5 - 6.5
6.0 - 8.0
6.0 - 8.0
T. Nagar
4.0 - 6.5
4.0 - 6.5
7.5 - 10.5
8.5 - 11.5
8.5 - 14.0
10.0 - 16.0
10.0 - 16.0
Mylapore
NA
NA
NA
8.0 - 12.5
10.0 - 15.0
12.0 - 17.0
12.0 - 17.0
Mogappair
NA
NA
NA
5.0 - 5.5
5.0 - 6.5
5.0 - 7.5
5.0 - 7.5
Kilpauk
4.5 - 6.0
4.5 - 6.0
6.0 - 8.0
7.5 - 9.5
9.0 - 12.0
12.0 - 15.0
13.0 - 15.0
Location
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
Unlike 1Q 2013, this quarter saw a huge surge in
launched in the mid-end segment, followed by
the number of new units being launched to cater to
approximately 6% launches in affordable segment.
the residential real estate demand. At 3,200, the
High-end segment accounted for almost 5% of the
number of new launches increased by 40% over 1Q
new launches in this quarter.
2013 with approximately 89% of units being
18
Project Name
Developer
Location
Number of Units*
Type
Akshaya Republic
Akshaya Homes
Kovur
600
Apartments
2 BHK: 612
3 BHK: 1481
Temple Town
VGN Developers
Thiruverkadu
520
Apartments
1 BHK: 565
2 BHK: 960 to 1149
3 BHK: 1260
Urbantree Oxygen
Urban Tree Infrastructure
Off Gandhi
Nagar Society,
Mian Road,
Perumbakkam
515
Apartments
1 BHK: 463
2 BHK: 600 to 900
3 BHK: 1436
Akshaya Republic
Akshaya Homes
Kovur
600
Apartments
2 BHK: 612
3 BHK: 1481
Solaray
Land Marvel
Perumbakkam
360
Apartments
2 BHK: 600 to 1057
3 BHK: 1326 to 1556
Imperial Towers
Sri Sreenivasa
Constructions
OMR Road
205
Apartments
2 BHK: 985 to 1065
3 BHK: 1450 to 1510
Arista
Arihant - JP Morgan
Maraimalai Nagar
184
Apartments
1 BHK: 545
2 BHK: 954
3 BHK: 1010
Marutham Prestige
Marutham Group
Tambaram West
165
Apartments
3 BHK: 1346
Avalon Springs
Jains Housing &
Constructions Pvt. Ltd.
Off GST
152
Apartments
2 BHK: 817
3 BHK: 1217
Geethanjali
Landmark Construction
Anna Nagar
(West)
96
Apartments
3 BHK: 1525
Ethiraj
StepsStone Promoters
Perungalathur
76
Apartments
1 BHK, 2 BHK,
3 BHK: 464 to 1249
Aalayam
Manju Groups
200 Ft. Chennai
Bypass Road
67
Villas
3 BHK, 4 BHK,
5 BHK: 1500 to 2500
Celebration
Fomra Housing
Ayanambakkam,
Mogappair West
Extension
51
Apartments
2 BHK: 916
3 BHK: 1340
Sai Enclave
MMRF
Arazankazhani,
Sholinganallur
44
Apartments
1 BHK: 780
2 BHK: 1000
3 BHK: 1300
Spruce
Vijay Raja Homes
Kalavakkam, OMR
35
Apartments
4 BHK: 1570
Adava
JK Construction
Thoraipakkam
28
Apartments
3 BHK: 1095
Ashraya
VJS Associates
Medavakkam
28
Apartments
2 BHK: 750 to 1140
3 BHK: 1110 to 1330
Vista Oceana
MMRF
Padur, OMR
19
Villas
3 BHK : 2648 -3106
Sreshta Sundaram
Sumanth & Co.
Kalakshetra Road,
Thiruvanmiyur
16
Apartments
3 BHK: 1600 to 2000
4 BHK: 3550
Aspire
Royal Splendour
Developers (P) Ltd.
Pallavaram
16
Apartments
2 BHK: 838 to 1151
Shree Mohan Flats
Shree Constructions
Vandalur Kelambakkam Road
12
Apartments
2 BHK: 900
3 BHK: 110O
Osian One
SPR Group
Vandalur Kelambakkam Road
8
Villas
4 BHK: 4000
Shree Mohan Flats
Shree Constructions
Porur
5
Apartments
2 BHK: 900
3 BHK: 1100
Dharshini
Priams
West Mambalam
4
Apartments
3 BHK: 1300
19
Robust construction activity in locations along
Mogappair and Porur. In the high–end category,
Rajiv Gandhi Salai and GST continued during the
under construction projects, both within city limits
second quarter of 2013. Owing to high demand,
and in the periphery continued to draw interest and
several developers have increased the prices of
some locations like R.A. Puram saw price
projects currently under construction, mainly for
appreication by 5%.
mid-end categories, in locations like Egattur,
In the commercial office market, Suburban-
activity. There were no pre-commitments recorded
Perungudi Taramani emerged as the micro market
in this quarter. The rental values continued to remain
with highest net absorption followed by CBD and
stable in most of the micro markets of the city,
Suburban–Guindy locations. IT/ITeS sector was the
except for Suburban – Perungudi Taramani and CBD
largest contributor to the leasing activity with 72%
areas where an increase in supply led to a dip in the
space taken up by IT companies. BFSI came a close
weighted average rentals.
second and accounted for 18% of the leasing
Retail Sector
In the retail sector, dearth of quality retail space
however, dipped by 6.7% on a q-o-q basis in Anna
and high demand were noted in the main streets in 2Q
Nagar 2nd Avenue due to the ongoing construction of
2013. Main street rentals remained stable throughout
metro rail. Adyar Main Road, too saw a 6.3% dip in
the city except for Usman Road – North where an 8%
rentals due to slowdown in business activity and
q-o-q increase was recorded due to consistent high
cautious sentiments from retailers. Level of enquiries
demand from jewellery and apparel retailers. Rentals,
remained high in Pondy Bazaar.
Outlook
The residential market is anticipated to witness
occupiers. Limited new supply is expected to come in
stable capital and rental values in most of the
the market in the next quarter and vacancy levels
locations in the next quarter. However, certain
might dip as a result. By and large, the rentals are
locations like Velachary and Adyar may see an
expected to remain stable for the city.
upward trend in capital values for the mid-end
category due to high demand. Many new project
launches are expected to be announced in the
coming quarter for locations like Rajiv Gandhi Salai
and GST.
Rentals in most of the main streets and malls are
expected to remain stable in the coming quarter.
Some main streets like Pondy Bazar may witness an
upward movement in rentals due to continued high
demand from apparel and jewellery retailers. Two
The commercial office market is expected to
new shopping malls with a cumulative area of
witness healthy leasing activity in the next quarter
461,000 sf are expected to become operational in
as business sentiments improve which may provide
the next quarter in Chennai.
the much needed impulse amongst corporate
20
Hyderabad
Market Overview
In 2Q 2013, the residential property market
witnessed an influx of over 4,400 new residential
units in various micro markets. Almost 82% of these
projects belonged to the mid segment and were
concentrated in the South West region and
Madhapur in the North West. Affordable category
and high-end category saw 11% and 7% of the total
new launches respectively. Due to the revision in
circle rates, almost all micro markets witnessed an
upward trend in the capital values, across all
categories with the exception of Kompally, which did
not witness any q-o-q appreciation in capital values.
The ongoing work for Metro Rail also boosted the
local sentiments due to increased accessibiliy for
the highest quarter on quarter increase of nearly
some regions. Rental values depicted a stable trend
33.3% in the rentals due to limited availability of
and only areas like Kukatpally and Banjara Hills
options and robust demand from brands belonging
witnessed a q-o-q increase of 9% and 8%
to apparel, electronics, hypermarket and conviniece
respectively. Marginal increase of 2% in rental
store categories. Other main streets like Kukatpally,
values was also noted in Madhapur.
Himaynagar, Ameerpet and Punjagutta experienced
The office real estate market of Hyderabad saw
influx of nearly 960,000 square feet (sf) of space in
the second quarter of 2013. Office space targeted
towards IT occupiers accounted for 52% of the total
supply, while 14% of the office space supply
belonged to SEZ category. Around 66% of the total
supply came in Grade A, however 78% was already
pre-committed. City level vacancy was recorded at
17.2%, a slight drop of 0.3 percentage point from the
last quarter. Strong occupier preference for Grade A
properties in Suburban (Madhapur) owing to
proximity of residential cacthments along with good
connectivity to central and suburban business
districts led to drop of vacancy to a sub 2% level.
Hyderabad retail market witnessed a mixed
rental trend in main streets. A.S.Rao Nagar recorded
an increase of 16.7%, 8%, 19% and 29.2%
respectively owing to healthy demand by apparel
and jewellery retailers and mom and pop categories.
Select main streets like Raj Bhavan Road/
Somajiguda witnessed negative growth of 14.3% in
rentals owing to accessibility constraints due to
recent modification of road dividers barring the
medians. Abids and Banjara hills too followed a
similar trend registering a drop of 12% and 7.1%
respectively due to huge vacancy creation in Abids
by a hypermarket chain and a convinience store and
limited demand in Banjara Hills due to availability of
relatively poor retail space options only. NTR
Gardens mall submarket too registered a drop in
rentals due to lower demand from retailers.
Meanwhile, malls in all other locations exhibited
stable rental trend.
21
Trends And Updates
During the second quarter of 2013, Hyderabad
capital values. Rental values in the high-end
witnessed a steep rise in enquiries for ready
segment remained stable across all locations except
residential properties. Almost all micro markets in
Kukatpally. Major project completions are expected
Hyderabad witnessed appreciation in capital values
in Madhapur, Nizampet, Tellapur and Alwal in the
for both high and mid-end segment due to increasing
coming months. Two major projects, Sri Sai Ram
demand and revision in guidance values at the
Towers and Lodha Bellezza got completed in 2Q
beginning of the quarter. Himayathnagar and West
adding nearly 700 new units to the residential
and East Maredpally both saw a 20-22% rise in
supply in the city.
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
Banjara Hills
6.5 - 7.1
5.8 - 6.5
6.7 - 2.0
6.4 - 7.5
6.4 - 7.5
6.5 - 7.5
7.0 - 8.5
Jubilee Hills
6.5 - 7.1
5.5 - 6.3
6.0 - 7.0
6.2 - 7.2
6.1 - 7.2
6.1 - 7.2
6.5 - 8.5
Himayatnagar
3.4 - 4.4
3.3 - 4.0
3.7 - 4.0
3.7 - 4.2
3.6 - 4.2
3.6 - 4.2
4.0 - 5.5
West & East Marredpally
3.3 - 4.3
3.3 - 3.8
3.5 - 4.0
3.6 - 4.3
3.6 - 4.3
3.6 - 4.3
4.0 - 5.5
Begumpet, Somajiguda
3.9 - 4.5
3.9 - 4.5
4.1 - 4.5
4.3 - 4.8
4.3 - 4.7
4.1 - 4.9
4.5 - 5.5
Madhapur, Gachibowli
3.8 - 4.4
3.5 - 4.3
3.8 - 4.9
3.9 - 5.3
4.1 - 5.3
4.1 - 5.3
4.5 - 6.0
Kukatpally
3.3 - 4.3
3.3 - 4.0
3.5 - 4.5
3.8 - 5.1
3.8 - 5.1
3.8 - 5.1
4.0 - 6.0
Miyapur, Nizampet
NA
2.6 - 3.3
2.7 - 3.4
2.8 - 3.5
2.9 - 3.5
2.9 - 3.5
2.9 - 3.5
1Q 2013
2Q 2013
Location
Note: The above values for high-end typically include units of 1,600-4,000 sf
Average Capital Values - Mid Segment (INR ‘000/sf)
2008
2009
2010
2011
Banjara Hills
3.4 - 4.2
3.6 - 4.2
3.6 - 4.5
3.8 - 4.6
3.8 - 4.8
3.8 - 4.8
4.0 - 5.0
Jubilee Hills
3.4 - 4.0
3.5 - 4.0
3.7 - 4.0
4.0 - 4.2
4.0 - 4.2
3.8 - 4.4
3.8 - 4.4
Himayatnagar
2.6 - 3.0
2.7 - 3.0
2.7 - 3.5
2.7 - 3.7
2.8 - 3.6
2.8 - 3.6
3.0 - 3.8
West & East Marredpally
2.5 - 3.0
2.5 - 2.8
2.7 - 3.0
2.8 - 3.2
2.7 - 3.2
2.7 - 3.2
3.0 - 3.5
Begumpet, Somajiguda
2.5 - 3.0
2.6 - 3.1
2.8 - 3.5
2.9 - 3.6
2.8 - 3.6
2.8 - 3.7
3.0 - 4.0
Madhapur, Gachibowli
2.6 - 3.0
2.5 - 3.1
2.6 - 3.4
2.8 - 3.5
3.0 - 3.8
3.0 - 3.9
3.5 - 4.0
Kukatpally
2.4 - 2.8
2.4 - 2.9
2.7 - 3.2
2.9 - 3.5
2.9 - 3.6
2.9 - 3.6
2.9 - 4.0
Miyapur, Nizampet
NA
1.8 - 2.5
1.8 - 2.5
2.4 - 3.0
2.2 - 3.4
2.3 - 3.4
2.7 - 3.4
Location
2012
22
In Hyderabad, nearly 4,400 new residential units
Gachibowli, Hafeezpet and Madhapur. 75% of these
were launched compared to 600 units launched last
projects were apartment units and villas contributed to
quarter as a number of property developers seeked
the remaining 25% units. 82% of these projects catered
benefit of increasing demand and stable political
to mid-end, followed by affordable (11%) and high–end
environment. Also, fear of the weakening currency and
segments (7%). Demand is expected to continue
changes in budgetory norms also expedited project
increasing which may lead to an upward bias in capital
launches which were spread across Narsingi,
values for these under construction residential units.
Project Name
Developer
Location
Number of Units*
Type
My Home Vihanga
Phase I
My Home Constructions Ltd.
Gachibowli
800
Apartment
2 BHK: 1115 to 1275
3 BHK: 1690 to 1740
Symphony Park Homes
Phase II
Safeway Infra
Tellapur
730
Villas
3 BHK+ 1: 2030 to 3550
Atria Phase I
Rajapushpha Properties
Pvt Ltd.
Kokapet
550
Apartment
2, 3, 4 BHK: 1345 onwards
Avalon Courts Phase I
Chennamaneni Infra
Pvt. Ltd.
Pocharam, Uppal
500
Apartment
3 BHK: 1200
Urban One Phase I
Nagarjuna Constructions
Narsingi
320
Apartment
3 BHK: 1350 to 1845
4 BHK: 2575 to 3325
Mantri Euphoria
Mantri Developers Pvt Ltd. Narsingi
200
Villas
3 BHK: 3020 to 3700
Rashmi Lake City Phase I
Rashmi Realty Builders
Hafeezpet
162
Apartment
2 BHK: 981 to 1332
3 BHK: 1512 to 1809
Lakshmi Villas Phase II
Anuteja Constructions
Chandanagar
90
Villas
4 BHK: 3000 to 3500
Riparian Casa
Sri Srinivasa
Constructions
Mokila
71
Villas
3BHK: 2500 to 2800
The North Western and South Western locations
Kukatpally, Madhapur and Gachibowli which have
of Madhapur, Gachibowli, Tellapur, Kukatpally and
already witnessed an upward trend in pricing.
Hafeezpet continued to witness robust construction
Improvements in infrastructure, like new flyover
activity during 2Q 2013 with a number of developers
between Kukatpally and Madhapur will also
constructing approximately 100-300 units in a
contribute to increase in residential property prices
phased manner. In particular, huge demand in a few
in the coming months.
under construction projects is anticipated in
23
The office market witnessed a net absorption of
strong preference for quality spaces. The average
nearly 755,000 sf (65% of which was pre-commited
deal size for transactions was noted nearly 10,000 sf
earlier) in the second quarter of the year. Further,
in this quarter. Meanwhile, rentals across micro
Information Technology – Business Process
markets remained in similar ranges with only
Management (IT-BPM) sector continued to be the
marginal deviations. Further, the city saw few pre-
biggest contibutor accounting for over 56% of the
commitments this quarter amouting to 355,000 sf
total absorption. Over 95% of the net absorption
as against first quarter which saw no pre-
took place in Suburban (Madhapur and Gachibowli)
commitments. Majority (78%) of the pre-
location. 90% of the net absorption in the above
commitments were for Grade A properties located in
locations accounted for Grade A spaces, indicating a
Suburban (Madhapur) submarket.
Retail Sector
The retail market witnessed enquiries for
multiplexes and hypermarkets categories. Residential
emerging main streets like Attapur, Kottapet (Dilkush
catchments in vicinity and competitive rentals is
nagar extension), Tolichoki (in Mehdipatnam) from
driving the attractiveness of these locations.
diverse retailers belonging to apparel, electronics,
Outlook
As demand remains strong for residential units in
levels since most of the supply is pre-committed.
the pockets of Madhapur and Gachibowli, these
Further, rentals are expected to remain in similar
micro markets may continue to witness steady
ranges across submarkets, apart from Suburban
increase in prices in the next quarter. Improved
(Madhapur) where rentals may experience an
market sentiments will also provide an impetus for
upward pressure due to sustained demand for
new launches in the second half of the year. Demand
quality spaces.
for resale properties is also expected to be favorable
in Banjara Hills and Jubilee Hills.
The rental levels for both main streets and malls
are anticipated to exhibit a stable trend. Meanwhile,
Going forward in the commercial real estate
Kukatpally micro market is likely to witness opening
market, Grade A properties in Suburban (Madhapur)
of a new mall in the third quarter leading to an
micro market are expected to witness lower vacancy
addition of 425,000 sf of mall space in the city.
24
Kolkata
Market Overview
During the second quarter of 2013, the residential
sector gained momentum as the quantum of the new
projects that were launched rose by 47% as
compared to the previous quarter. The mid-end
segment witnessed healthy demand both from end
users as well as investors. Capital values in most
micro markets, mid as well as high-end segments,
appreciated in the range of 3-8% over the previous
quarter on the back of steady demand and new
project launches at higher price points fuelled by the
continuous increase in land acquisition and
construction cost.
Retail sector in second quarter of 2013 witnessed
Commercial sector leasing activity for 2Q 2013
healthy leasing activity majority of which was driven
was recorded at 339,000 sf, 44% higher than first
by domestic jewellery and lifestyle brands followed
quarter. Grade A net absorption was noted at
by international brands from the food and beverage
296,000 sf, almost double of the previous quarter.
segment. Vacancy level in malls remain unchanged
Around 318,000 sf of new supply was infused during
at 4.5% as new space take up was negated by few
the second quarter in Rajarhat and Park Circus micro
stores that closed their operations either due to high
markets. Overall vacancy level remained at 22-23%
rentals and low sales revenue or as part of their
level. However, Park Circus Connector micro market
company strategy.
witnessed an increase in vacancy due to new supply
addition which is lying vacant.
Trends And Updates
Ready properties appreciated in the range of 2.5-
East micro market. Few of the prominent projects
8% on quarterly basis; mid end segment in North-
which got completed during the second quarter
East, South East and North micro markets witnessed
included Fort Legend by Fort Group in Southern
higher appreciation. Around 3,000 units got
Avenue and Sunrise Greens by Surekha Properties in
completed in various projects during the second
North East micro market.
quarter, majority of which were in Rajarhat in North
25
2008
2009
2010
South
5.0 - 6.0
4.8 - 5.9
5.3 - 6.8
6.3 - 8.5
7.0 - 12.0
7.5 - 12.0
7.5 - 13.0
South - Central
9.0 - 10.0
8.5 - 9.6
9.5 - 13.0
10.0 - 18.0
10.0 - 18.0
10.0 - 18.0
11.0 - 18.5
South - East
4.5 - 5.7
4.5 - 5.7
4.5 - 8.0
5.8 - 9.2
5.8 - 9.5
5.8 - 9.5
6.0 - 10.5
South - West
9.5 - 10.0
8.6 - 9.8
8.9 - 13.0
10.0 - 15.0
10.0 - 15.0
10.0 - 15.0
11.0 - 16.0
Central
7.5 - 10.2
7.2 - 10.0
8.0 - 12.5
9.0 - 15.0
10.0 - 17.0
10.5 - 17.5
11.0 - 18.5
East
4.2 - 5.3
4.0 - 5.2
4.0 - 5.5
4.5 - 6.0
4.5 - 6.8
4.7 - 7.2
5.0 - 7.7
North - East
3.2 - 4.2
3.0 - 4.0
3.2 - 4.5
3.5 - 5.0
3.8 - 5.7
4.0 - 6.0
4.2 - 6.5
2012
1Q 2013
2Q 2013
Location
2011
2012
1Q 2013
2Q 2013
*The values for Central, East and North-East micro markets have been revised due to increased market coverage.
Average Capital Values – Mid Segment (INR ‘000/sf)
2008
2009
2010
South
2.8 - 4.3
2.7 - 3.9
3.2 - 4.5
3.8 - 5.5
3.8 - 5.5
3.8 - 5.5
3.8 - 6.0
South - Central
4.5 - 5.5
4.2 - 5.3
4.5 - 6.0
5.5 - 8.0
5.5 - 8.0
5.5 - 8.0
5.8 - 8.8
South - East
2.5 - 3.0
2.4 - 2.8
2.5 - 3.2
2.8 - 4.5
2.8 - 4.5
2.8 - 4.5
2.9 - 5.0
North - East
1.8 - 2.2
1.9 - 2.2
2.2 - 2.7
2.4 - 3.0
2.4 - 3.0
2.4 - 3.0
2.7 - 4.0
North
1.8 - 3.5
1.8 - 3.4
2.2 - 4.7
2.8 - 5.2
2.8 - 5.2
2.8 - 5.2
3.0 - 5.8
Location
2011
*The values for North-East micro market have been revised due to increased market coverage
Key to Locations:
High End Segment:
Mid-Segment:
South: Southern Avenue, Hindustan Park, Triangular
Park, Lake Terrace etc.
South: Golf Green, Tollygunge, Lake Gardens, Jodhpur
Park etc.
South Central: Ballygunge, Queens Park, Rainy Park,
Gurusaday Road, Ballyguange Circular Road, Dover Lane etc.
South Central: Deshpriya Park, Hazra Road, Bhawanipur
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.
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.
North: Kankurgachi, Lake Town, VIP Road, Ultadanga,
Narkeldanga Main Road
East: Salt Lake
North-East: New Town, Rajarhat
26
The second quarter of 2013 saw an increase in
North Peripheral locations such as Garia,
momentum in terms of the new projects launched.
Narendrapur and Madhyamgram, Sodepur
Around 2,295 residential units were launched during
respectively. Some of the most prominent projects
the quarter, which was significantly higher
launched during the second quarter included a
(approximately 47%) than the last quarter.
luxurious project Godrej Platinum by Godrej
Developers focused majorly on the mid-end segment
Properties in Alipore. Another project that attracted
with smaller 2 & 3 BHK apartments of area ranging
huge interest from end users as well as investors was
from 900-1500 sf. Majority of the projects were
Greentech City Smarthomes which is a part of Vedic
launched in Rajarhat location in North East micro
Village in Rajarhat targeted for the mid end segment.
market followed by emerging South Peripheral and
Project Name
Developer
Location
Number of Units*
Type
Greentech City
Smart Homes
GreenTech IT City &
Vedic Realty
Rajarhat
600
Apartment
1 BHK: 650
2 BHK: 950
3 BHK: 1300
Siddha Town
(Madhyamgram)
Siddha Group
Madhyamgram
410
Apartment
2 BHK: 815 to 1160
3 BHK: 1260 to 1485
Modello Highs
Modello
Ventures Pvt. Ltd.
EM Bypass
172
Apartment
2 BHK: 1113 to 1128
3 BHK: 1448 to 1841
Rajwada Springfield
Rajwada Group
Narendrapur
168
Apartment
2 BHK: 1040
3 BHK: 1405 to 1610
Clubtown Gateway
Space Group
New Town
155
Apartment
2 BHK: 1038 to 1206
3 BHK1391 to 1835
4BHK: 1957 to 2170
Prakriti (Phase 5)
Godrej Properties
Sodepur
152
Apartment
3 BHK: 1100 to 1359
Fussion
Mounthill Realty
Sodepur
140
Apartment
2 BHK: 954
3 BHK: 1555
4 BHK: 2047 to 2510
Symphony Towers
Mainaak Group
Behala
108
Apartment
3 BHK: 1440 to 1510
Meena Wood
G M Group
New Town
100
Apartment
2 BHK: 866 to 1044
3 BHK: 1165 to 1349
Rajwada Estate (Ph 2)
Rajwada Group
Garia
80
Apartment
2 BHK: 1025 to 1340
3 BHK: 1350 to 1905
Realtech Gharoa
Realtech Nirman
Pvt. Ltd
Rajarhat
60
Apartment
2 BHK: 853 to 954
3 BHK: 1162 to 1481
Eden Pavilion
(Block 3&4)
Eden Group
Garia
40
Apartment
3 BHK: 1172 to 1358
Godrej Platinum
Godrej Properties
Alipore
35
Apartment
4 & 5 BHK: 3762 to 5075
Maple Wood
Realtech Nirman
Pvt. Ltd
Noapara
32
Apartment
2 BHK: 890 to 937
3 BHK: 1227 to 1265
Magnolia Elite
Magnolia Infrastructure
Development
Rajarhat
24
Apartment
3 BHK: 1143 to 1309
Fort Eleganza
Fort Group
Hazra Road
11
Apartment
4 BHK: 2726
Fort Jardin
Fort Group
Ramesh Mitra Road
8
Apartment
3 BHK: 1464 to 1497
27
During the second quarter, the capital values of
under construction projects that are nearing
under construction projects in the mid end segment
completion are Tata Eden Court Primo and DLF New
witnessed appreciation in 3-8% range over the
Town Heights in Rajarhat and Tirumani in
previous quarter. North East, North and South East
Ballygunge, which are expected to be completed in
micro markets recorded higher appreciation on the
coming quarters.
back of healthy demand. Some of the prominent
The overall leasing activity in commercial office
IT/ITeS sector that had pre-committed space in IT
space was noted at 339,000 sf which was
SEZ developments in Rajarhat. Another sector that
significantly higher, a hike of about 44% as
contributed majorly to the increase in net
compared to the preceding quarter. Likewise last
absorption was Banking, Financial Services and
quarter majority of the leasing activity was noticed
Insurance. A total of 318,000 sf of Grade A supply
in small to mid size office spaces with deals ranging
was infused during the second quarter in Rajarhat
between 1,200 and 15,000 sf. There were limited
and Park Circus micro markets. The overall vacancy
transactions with area requirements of 25,000 sf;
level remained unchanged at 22.8%. Park Circus
thus reflecting the continued cautiousness among
Connector micro market however witnessed a rise in
corporate occupiers for expansion. Grade A net
vacancy level due to infusion of new supply that was
absorption was recorded at 296,000 sf which almost
lying vacant. A marginal decline of 0.4-3% was
doubled over the previous quarter. Majority of the
observed in weighted average rentals across micro
net absorption was driven by companies from
markets during the second quarter.
Retail Sector
The second quarter witnessed healthy demand for
to sustain due to high rentals and low sales revenue.
retail space from domestic as well as international
Although rentals remained unchanged in most
brands. Some of the prominent transactions reported
locations; main street locations such as Park Street
during the quarter were Exclusive Lines and Pizza Hut
and Camac Street witnessed 12.5% q-o-q appreciation
in main streets of Camac Street and Park Street
in rentals due to consistent demand but lack of quality
respectively. The quarter also continued to witness
space. Also, malls in Salt Lake and South City
queries from international F&B and premium lifestyle
witnessed rentals inched up by about 11% each as
brands for quality mall space. The overall vacancy
compared to the previous quarter due to limited
levels of malls in city remained unchanged at 4.5% as
quality retail space in these malls and churning
the new space take up was negated by few stores that
happening at higher rentals in Salt Lake mall.
closed their operations as they were finding it difficult
28
Outlook
The residential properties in affordable and mid-
The office sector is expected to witness moderate
end segment are expected to witness steady
leasing activity with mainly small to mid size deals of
demand. However, the sales activity may slow down
areas between 1500-15,000 sf. Rentals in CBD
a bit or moderate temporarily across all segments in
locations such as Park Street and Camac Street are
the next quarter. Capital values are expected to
expected to see slight appreciation due to steady
remain stable. Select properties with good product
demand but limited quality available options.
mix and attractive price points may continue to
However, rentals in peripheral locations such as
appreciate on the back of steady demand. Also, East
Rajarhat and Salt Lake may drop marginally due to
and North East micro markets may continue to
current high vacancy levels and expected infusion of
witness appreciation in capital values fuelled by
supply of around 700,000 sf in Salt Lake.
positive news such as legalisation of land transfer in
Salt Lake and formation of a separate development
authority in New Town region respectively. In terms
of new project launches, the North East micro
market followed by Southern peripheral locations
such as Garia, Narendrapur and Northern peripheral
locations such as Madhyamgram, BT road are
expected to continue to be the major contributors.
Kolkata is expected to have its first mall with
dedicated floors for premium and luxury brands
spread across 438,000 sf in South Central location
almost at the end of third quarter of 2013. Rentals
are expected to appreciate in malls in Salt Lake and
Elgin Road due to steady demand from retailers.
Vacancy in malls is expected to remain stable.
29
Mumbai
MARKET OVERVIEW
Close to 11,000 units were launched in the city
during the quarter. This is an increase of close to
50% over the previous quarter primarily due to a
large township project launched in Panvel. 68% of
the units launched catered to the mid-end segment
followed by high-end (31%). No units were launched
in the affordable segment during the quarter. New
launches were concentrated in Navi Mumbai (38%)
followed by Western Suburbs (22%). Most of the new
projects launched offered some form of subvention
scheme to attract buyers. A few prominent
developers have also delayed launches and revisited
commitments by the IT/ITeS sector were recorded in
plans to offer lower priced units to boost sales. With
Goregaon, all of which is expected to be absorbed
demand for rental housing remaining stable and no
during the year. Demand in the second quarter was
additional supply in prime sub-markets, rental
driven by the IT/ITeS, pharmaceuticals and the
values continued to remain stable in the city.
media sectors.
The commercial office sector in Mumbai
The main-street locations of Colaba and Borivali
witnessed net absorption of approximately 1.62
LT road witnessed healthy enquiries during the
million square feet (msf) during the quarter. This is
quarter especially from the F&B sector. The F&B
an increase of 16% compared to the same quarter
sector has been particularly active in the recent past
last year and twice that of the previous quarter. New
with high-end brands looking to expand in Bandra-
take-ups during the quarter were concentrated in
Kurla complex. Limited transaction activity during
Thane-Belapur Road (42.0%), Malad/Goregaon
the quarter has resulted in stable rentals across all
(16.0%), Andheri (15.0%) and Thane (13.0%).
main-street locations except Lokhandwala Andheri
Average transaction size during the quarter was
where rentals appreciated by 3% on account of high
between 30,000-40,000 sf. A few significant pre-
demand.
TRENDS AND UPDATES
With most high-end projects being under-
appreciated by 4-12% in the high-end and mid-end
construction and limited quality availabilities in
segment. Other suburban markets with healthy
prominent sub-markets like South, South Central,
supply like Far North, Thane and Navi Mumbai had
Central and North Mumbai, capital values
capital values remaining stable.
30
Average Capital Values – High End (INR ’000/sf)
Location
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
South
43.0 - 55.0
42.5 - 58.0
43.0 - 60.0
45.0 - 65.0
48.0 - 70.0
48.0 - 70.0
48.0 - 75.0
South Central
47.0 - 67.0
42.0 - 66.0
45.0 - 70.0
45.0 - 75.0
46.0 - 78.0
46.0 - 78.0
46.0 - 83.0
Central
33.0 - 53.0
34.0 - 55.0
35.0 - 55.0
32.0 - 54.0
34.0 - 58.0
30.0 - 58.0
30.0 - 65.0
North
27.0 - 31.0
22.0 - 30.0
24.0 - 32.0
24.0 - 32.0
28.0 - 40.0
28.0 - 40.0
28.0 - 48.0
Far North
9.0 - 13.0
10.0 - 16.5
11.0 - 16.5
11.0 - 16.5
12.5 - 18.0
12.5 - 18.0
12.5 - 18.0
North East
14.0 - 18.0
10.0 - 16.0
10.0 - 16.0
10.0 - 18.0
14.0 - 22.0
14.0 - 22.0
15.0 - 22.0
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
Average Capital Values – Mid Segment (INR'000/sf)
Location
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
South
27.0 - 34.0
28.0 - 37.0
30.0 - 40.0
30.0 - 40.0
35.0 - 45.0
35.0 - 45.0
40.0 - 50.0
South Central
34.0 - 43.0
35.0 - 45.0
40.0 - 48.0
43.0 - 52.0
43.0 - 52.0
43.0 - 52.0
45.0 - 58.0
Central
18.0 - 28.0
15.0 - 26.0
17.0 - 30.0
17.0 - 35.0
22.0 - 37.0
25.0 - 37.0
25.0 - 40.0
North
13.5 - 19.5
16.0 - 24.0
16.0 - 25.0
16.0 - 25.0
18.0 - 27.0
18.0 - 27.0
20.0 - 30.0
Far North
7.0 - 9.0
8.5 - 11.5
9.0 - 12.0
9.0 - 13.0
10.0 - 14.0
10.0 - 14.0
10.0 - 14.0
North East
6.0 - 7.4
6.4 - 8.5
6.5 - 8.5
6.5 - 10.0
8.5 - 12.5
8.5 - 12.5
8.5 - 12.5
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 1,200-1,400 sf
for Far North and North-East
Key to Locations:
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
31
Approximately 11,000 units were launched during
included Indiabulls Phase II, part of its township
the second quarter of 2013, representing an increase
project in Panvel and a high end project by Tata
of 50% compared to the previous quarter. Most of
housing in Mulund. The western suburbs also
the new launches were in Panvel and the western
witnessed quite a few launches especially in the
suburbs in Mumbai. A few prominent projects
Goregaon to Borivali belt.
Project Name
Developer
Location
Number of Units*
Type
Indiabulls Greens
Phase 2
Indiabulls Realty
Panvel
4,100
Apartment
1BHK: 910
2BHK: 1172
3BHK: 1706
4BHK: 2416
Dosti Centerio
Dosti Group
Mumbra
2,000
Apartment
1BHK: 647
1.5BHK: 799
2BHK: 929
2.5BHK: 1108
Aveza
Tata realty
Mulund
950
Apartment
2BHK: 1453 to 1556
3BHK: 2005 to 2013
Raj Infinia
Rajesh Lifespaces
Malad
490
Apartment
2BHK: 1342
3BHK: 2008
4BHK: 3308
Neelkanth Palms
Phase 2
Neelkanth Developers
Thane
450
Apartment
2BHK: 1288
3BHK: 1545
4BHK: 2155
Park Royale
Pride Group
Andheri
336
Apartment
2BHK: 1170
3BHK: 1460
10 Degree north
Vihang Group
Thane
324
Apartment
1BHK: 635
2BHK: 970
Kalpataru Radiance
Kalpataru Group
Goregaon
320
Apartment
2BHK: 1342
3BHK: 2008
4BHK: 3308
The Era
Ravi Group, HDIL
Kandivali
240
Apartment
1BHK: 720
2BHK: 1,000 to 1,100
3BHK: 1,600
Gaurav Discovery
Ravi Gorup
Malad
240
Apartment
1BHK: 640 to 715
2BHK: 870 to 945
Acme avenue
Acme develoipers
Charkop
216
Apartment
2BHK: 1050
3BHK: 1642
Celestia
Lodha Group
Kanjurmarg
210
Apartment
2BHK: 1161
3BHK: 1638
Kalpataru Sparkle
Kalpataru Group
Bandra
160
Apartment
3 BHK: 1938 to 2460
4 BHK: 3400
Harmony Residency
Harmony Group
Thane
139
Apartment
2BHK: 1145
3BHK: 1510 to 1595
4BHK: 1655 to 2225
Vinayak Harmony
JMD Associates
Mulund
80
Apartment
1BHK: 715
2BHK: 1,100
Raheja Vista
K Raheja
Chandivali
80
Apartment
2BHK: 1300
3BHK: 1800
Burberry & Brioni
Nahar Amrit Shakti
Chandivali
76
Apartment
3BHK: 2361
Thakur Jewel
Thakur Group
Kandivali
76
Apartment
3BHK: 2055
4BHK: 2415
Fortune Exotica
Fortune
Borivali
72
Apartment
1BHK: 775
2BHK: 1050
3BHK: 1400
32
Project Name
Developer
Location
Number of Units*
Type
Rosa Elite
Rosa Group
Thane
72
Apartment
1BHK: 660
2BHK: 910
KUL Palladio
KumarUrban
Andheri
60
Apartment
1BHK: 693 to 801
Sanghvi Solitaire
Sanghvi Group
Borivali
48
Apartment
2BHK: 1120
3BHK: 1515
Mayfair Mystic
Mayfare Developers
Ghatkopar
40
Apartment
2BHK: 1298
3BHK: 1643
Ratan Icon
Ratan Group
Nerul
40
Apartment
2BHK: 1130
Aayush Aangan
Aayush Developers
Chembur
28
Apartment
2BHK: 1,250
iZARRA
Dheeraj realty
Khar
20
Apartment
3BHK: 1290
Suburban locations in Thane and Navi Mumbai
witnessed healthy construction activity during the
quarter with a number of projects nearing completion
like Lodha Aristo and Rustomjee Acura. With projects
in the city facing delays, preference for projects
nearing completions has increased. Developers
continue to offer subvention schemes like 20:80 and
30:80 so as to boost sales in the high-end segment.
Mumbai witnessed a supply of 2.2 msf during the
quarter all of which was Grade A. Majority of this
supply was concentrated in Andheri (65%), most
being IT/ITeS developments. An SEZ development
also became operational in Airoli at Thane-Belapur
Road; the last SEZ development in Mumbai was
delivered over a year back. With supply outpacing
absorption, Grade A vacancies increased marginally
to 22.1% from 21.9%. Rental values across most
locations remained stable except Powai where
rentals increased by 6% due to low availabilities and
Worli where rentals declined by 4% with landlords
reducing rents to attract tenants.
Retail Sector
A mall admeasuring 940,000 square feet (sf)
became operational in Thane with almost full
occupancy. A number of brands such as Marks &
Spencer, Zara, Lifestyle and Shoppers’ Stop have
leased space in the mall; thus expanding their
footprint in the city. With demand remaining stable,
mall vacancy in the city declined marginally to 15.1% at
the end of the second quarter. Low vacancy and
healthy demand for space in Lower Parel and Vashi
resulted in increased mall rentals. Mall rentals in Vashi
appreciated 17% during the quarter while rents at
Lower Parel increased only marginally by 4%. Limited
churn despite lower availabilities resulted in stable
rentals for other locations in the city.
33
Outlook
Residential capital values in the city are expected
to witness downward pressure owing to stagnant
demand levels and healthy supply. A number of
projects currently in the pipeline are expected to be
launched in the latter half of the year. Investors are
using real estate investment funds to invest in
organized real estate rather than making investment
decisions individually.
Fresh supply of 1.9 msf is expected to get
completed in the third quarter. Rentals at locations
like Andheri, Thane-Belapur Raod and Thane are
expected to be under pressure due to rising
availabilities as absorption during the third quarter
is expected to remain moderate. With quality
developments available at attractive pricings,
institutional investor interests in commercial office
developments have increased with a few significant
deals in the pipeline.
Mall rentals in Lower Parel are expected to
increase further in the upcoming quarter due to low
vacancy levels and healthy demand for space. No
new mall is under-construction in the city currently;
however one is expected to be launched in Navi
Mumbai. Main street rentals at Linking Road will
remain under pressure due to higher availabilities,
while rents in Borivali and Vashi could appreciate
due to healthy demand for these suburban
residential hotspots.
34
National Capital Region
MARKET OVERVIEW
The residential sector in NCR witnessed slow
transaction activity during the second quarter of
2013 in line with that in the previous quarter. With
the prevailing cautious demand scenario, the rental
and capital values across most micro markets
weakened during the quarter. On the supply side,
more than 14,000 units were launched during 2Q
2013, a notable increase from the previous quarter.
These were mainly launched in the Noida region,
which is primarily driven by end users and small
ticket size investors. Gurgaon witnessed a slowdown
in new launches with the developers in the region
following a wait and watch approach.
During the second quarter of 2013, Grade A
office leasing activity witnessed an increase of 13%
Grade A vacancy at 28% remained stable during 2Q
2013 as compared to the previous quarter.
as compared to the previous quarter. Corresponding
Continuing from the first quarter, NCR did not
to that, the Grade A net absorption saw a quarter on
witness any fresh mall supply during the second
quarter (q-o-q) increase of approximately 40%
quarter. Prominent apparel and F&B retailers
during 2Q 2013. The quarter saw an increase in the
continued to expand their presence across the city.
number of fresh leases along with active relocations
Select main streets and malls witnessed a marginal
and consolidations by occupiers. Rental values
rental appreciation over the previous quarter. Owing
across most micro markets remained stable with
to the healthy leasing activity in South Delhi, West
select locations witnessing marginal appreciation in
Delhi and Gurgaon malls, the overall mall vacancy
the range of 1-7% during the quarter. The overall
marginally declined to 14.4% during 2Q 2013.
TRENDS AND UPDATES
Prices of ready properties in most parts of Delhi
the addition of new supply in this segment at capital
witnessed weakened capital and rental values in
values lesser than the marker rates in 2Q 2013.
both the mid-end and high-end segment. Prominent
However, the prices remained stable in the mid-end
locations such as South-East and South-Central
and high-end segments in Gurgaon. Noida, on the
Delhi saw a double digit rental decline over the last
other hand, witnessed a marginal price appreciation
quarter. Gurgaon also noted a similar trend with
given the sustained interest from end-users.
prices declining in the high end segment because of
35
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
28.0 - 33.0
29.0 - 34.0
36.0 - 43.0
42.0 - 50.0
50.0 - 60.0
50.0 - 60.0
45.0 - 60.0
Location
South-West
South-East
19.0 - 23.0
21.0 - 24.0
24.0 - 30.0
25.0 - 35.0
25.0 - 45.0
25.0 - 45.0
25.0 - 40.0
South Central
20.0 - 23.0
21.0 - 25.0
25.0 - 32.0
27.0 - 40.0
27.0 - 50.0
27.0 - 50.0
27.0 - 50.0
Central
45.0 - 50.0
40.0 – 45.0
50.0 - 57.0
50.0 - 65.0
60.0 - 80.0
60.0 - 90.0
60.0 - 90.0
Gurgaon
5.2 - 11.0
5.3 – 12.5
6.2 - 18.0
8.5.0 - 21.0
10.5 - 32.0
11.0 - 32.0
11.5 - 29.0
Noida
5.2 - 6.2
5.2 – 6.5
5.5 - 7.0
5.5 - 7.5.0
6.2 - 8.1
6.5 - 8.5
6.6 - 9.0
Average Capital Values – Mid End (INR '000/sf)
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
South-East
14.0 - 16.0
14.5 - 16.5
15.0 - 20.0
15.0 - 28.0
25.0 - 30.0
25.0 - 30.0
25.0 - 30.0
South Central
18.0 - 20.0
18.5 – 20.5
20.0 - 23.5
25.0 -30.0
25.0 - 35.0
25.0 - 35.0
25.0 - 35.0
Gurgaon
3.8 - 5.2
4.0 – 6.5
4.5 - 7.5
5.0 - 9.0
6.8 - 10.5
6.8 - 11.5
7.5 - 11.5
Noida
3.0 - 4.5
3.2 – 5.5
3.8 - 5.6
4.2 - 5.8
4.3 - 6.2
4.5 - 6.2
4.5 - 6.5
Location
Note: The above values for mid-segment typically include units of 1,600-2,000 sf
Key to Locations:
High-end Segment:
South-West: Shanti Niketan, Westend, Anand Niketan,
Vasant Vihar
Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar,
Nizamuddin, Tees January Marg, Chanakyapuri.
High-end Segment:
South-East: Friends Colony East, Friends Colony West,
South-East: New Friends Colony, Kalindi Colony, Ishwar
Maharani Bagh, Greater Kailash - I, Greater Kailash – II.
Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave.
South Central: Defence Colony, Anand Lok, Niti Bagh,
South Central: Uday Park, Green Park, Saket, Asiad
Gulmohar Park, Hauz Khas Enclave, Safdarjung
Village, Geetanjali Enclave, Safdarjung Enclave,
Development Area, Mayfair Gardens, Panchsheel Park,
Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar.
Soami Nagar, Sarvodaya Enclave.
Central: Jorbagh, Golf Links, Amrita Shergil Marg,
Aurangzeb Road, Prithviraj Road, Sikandara Road, Tilak
The number of units launched in NCR during 2Q
and New Gurgaon. Most of these projects belonged to
2013 increased by approximately 31% as compared to
the affordable to mid-end category with a price
the previous quarter. The new project launches were
ranging from INR 2,500-7,700 per sf. The quarter also
mainly concentrated in Noida (77%) and Gurgaon
witnessed a few project launches in the high-end
(23%), namely in peripheral micro markets such as
segment mainly located in Gurgaon’s key micro
Greater Noida, along Yamuna Expressway, along
markets such as Golf Course Road, Southern
Noida-Greater Noida Expressway, Dwarka Expressway
Peripheral Road and Dwarka Expressway.
36
Project Name
Developer
Location
Number of Units* Type
Buddh Circuit Studios
(Phase 1)
Jaypee
Yamuna Expressway
1,600
Studio
Apartments
1BHK: 560 to 725
Buddh Circuit Studios
(Phase 2)
Jaypee
Yamuna Expressway
1,600
Studio
Apartments
1BHK: 560 to 725
ATS Pristine
ATS Group
Sector 150,
Noida Expressway
1,200
Studio
Apartments
3BHK: 1,750 to 2,300
4BHK: 3,200
Golf Village
(Part of Golf Country)
Supertech Group
Sector 22 D,
Yamuna Expressway
1,200
Apartments/
Studio
Apartments
1BHK: 590 to 690
2BHK: 1,000 to 1,255
3BHK: 1,440
Fable Castle
Supertech Group
Yamuna Expressway
1,000
Apartments
2BHK: 1,000 to 1,255
3BHK: 1,440 to 1,820
4BHK: 2,125
Crescent Residences
(Part of Sushant
Megapolis)
Ansal API
Greater Noida
1,000
Apartments
3BHK: 1.515
Gaur Sportswood
Gaur
Sector 79, Noida
900
Apartments
3BHK: 1,540 to 2,070
4BHK: 2,780
Galaxy Vega
Galaxy Developers
Greater Noida (West)
800
Apartments
2BHK: 995 to 1,195
3BHK: 1,340
Earth Gracia
Earth Infrastructure
Sector 1, Greater
Noida-West
720
Apartments
2BHK: 1,310
3BHK: 1,545
Verona Hills
ABW Group
Sector 76, Gurgaon
700
Apartments
2BHK: 1,441
3BHK: 1,824 to 2,136
4BHK: 3,756
Park View Sanskriti
Bestech
Sector 92, Gurgaon
650
Apartments
3BHK: 1,950 to 2,350
4BHK: 2,650
Mirage Homes
Imperia
Jaypee Sports City,
Yamuna Expressway
650
Apartments
3BHK: 1,350 to 1,450
Primera (Phase 1)
Ramprastha
Sector 37 D,
Dwarka Expressway,
Gurgaon
472
Apartments
3BHK: 1,695 to 1,720
Tata Primanti
(Phase 2)
Tata Housing
Sector 72, Southern
Peripheral Road
400
Apartments
3BHK: 2,550
4BHK: 3,355
Beethoven's 8
Agrante
Sector 107,
Dwarka Expressway,
Gurgaon
391
Apartment/
Duplex
2BHK: 1,300
3BHK: 1,702 to 2,261
4BHK: 2,585
5BHK: 5,709
White House
(Phase 2)
Maxblis
Sector 75, Noida
350
Apartment
2BHK: 940 to 1,040
3BHK: 1,350 to 1,820
4BHK: 2,250
Gurgaon Gateway
Tata Housing
Sector 113,
Dwarka Expressway,
Gurgaon
300
Apartment
2BHK: 1,550
3BHK: 2,000 to 2,300
The Crest
DLF
Golf Course Road
250
Apartment
3BHK: 2,662
4BHK: 3,081 to 4,498
5BHK: 6,288
Elite Residences
Pareena Infrastructure
Pvt. Ltd.
Sector 99, Dwarka
Expressway, Gurgaon
100
Apartment
3BHK: 1,865 to 2,150
4BHK: 2,365
The Summit (Phase3)
Godrej Properties
Sector 104, Dwarka
Expressway, Gurgaon
80
Apartment/
Penthouse
3BHK: 1,712 to 1,844
4BHK: 2,324 to 4,925
37
Prominent micro markets of Gurgaon and Noida
this year. During 2Q 2013, developers across NCR
such as Golf Course Road, Golf Course Extention Road,
came up with innovative payment schemes to
Southern Peripheral Road, Dwarka Expressway, New
attractive buyers and boost sales. Some of these are
Gurgaon, Greater Noida, along Yamuna Expressway
variants of a 20:80 scheme, which limits the quantum
and along Noida-Greater Noida Expressway witnessed
of payment by the buyer to 20% of the total amount
healthy construction activity during 2Q 2013 with
initially until the actual handover of possession when
numerous projects nearing completion by the end of
the balance 80% is due.
Slowdown in new office supply continued during
the new supply across the region along with
the second quarter of 2013 with approximately 1.8
moderate leasing activity, the overall vacancy rate
msf of supply addition, a 4% decline from the
remained stable during 2Q 2013. However, the influx
previous quarter. The supply was mainly
of robust supply in Noida took a toll on the vacancy
concentrated in Noida (approximately 67%). South-
levels of the micro market, which moved northwards.
East Delhi also saw an addition of 124,000 sf Grade A
IT/ITeS, telecom and BFSI companies were the key
supply after nearly two years. Given the infusion of
demand drivers during the second quarter of 2013.
Retail Sector
Healthy leasing activity was witnessed across
Philippe and Starbucks are some of the retailers
main streets and malls during the second quarter of
which are expanding their presence within the NCR
2013. There was a rise in the number of enquiries
region. Rentals across most main streets and malls
from international retailers for prominent malls in
remained stable over the previous quarter with
South Delhi due to the relaxation of Foreign Direct
select markets such as Rajouri Garden and South
Investment (FDI) norms in single brand retail.
Delhi malls witnessing marginal rental appreciation
Popular brands such as U.S. Polo, Van Heusen, Louis
during the quarter.
38
Outlook
Given the prevailing sentiment in the residential
significant share of this supply is coming up in
real estate market, rental and capital values across
Gurgaon (approximately 89%) followed by Noida
NCR are expected to further weaken in the short
(approximately 11%). The first phase of the Rapid
term given the slow transaction activity. Delhi
metro in Gurgaon expected to become operational
residential market is likely to remain stagnant with
soon, is likely to provide impetus to the real estate
cautious buyer sentiment and Gurgaon is expected
activity in the region. Given the steady upcoming
to witness stable prices in the next few months. On
supply along with expected moderate leasing
the other hand, prices in Noida, Greater Noida and
activity, the rentals across NCR are likely to remain
Yamuna Expressway are expected to move
steady during the next quarter.
northwards in the subsequent months with the
implementation of the recently proposed hike in the
circle rates in the region. In the long run, the
upcoming Metro line from Delhi to Greater Noida is
expected to provide improved connectivity thereby
boosting the real estate activity in the Noida region.
The third quarter of 2013 is likely to witness
225,000 square feet (sf) of mall supply in West Delhi.
Considering the moderate leasing activity expected
in the coming 3 months, the rental values of main
streets are likely to remain stable in the next few
months. On the other hand, mall rentals are
Moderate office demand is expected in the next
expected to move northwards given the increase in
quarter and occupiers are likely to evaluate
enquiries from luxury international brands for Grade
consolidation and relocation plans while restraining
A retail space. Kamla Nagar, a prominent main
expansion plans within the region. Approximately
street, is expected to witness addition of a retail
2.3 msf of Grade A office supply in expected to be
complex providing quality space options to both
completed during the third quarter of 2013. A
international and domestic retailers.
39
Pune
MARKET OVERVIEW
During the second quarter of 2013, around 4,400
residential units were launched in Pune, a decline of
34% compared to the previous quarter. The midsegment contributed 75% of the total units
launched followed by high end segment (25%).
Capital values remained stable across all micro
markets, in the city with demand remaining stable.
Demand-supply equilibrium in the rental market has
resulted in rental values remaining stable in the city.
Pune’s commercial sector witnessed increased
leasing activity with an overall net absorption of
approximately 850,000 sf during the second
quarter of 2013; this was almost double when
due to high demand for these locations.
compared to the previous quarter. Grade A net
Retail sector observed decline in rentals both in
absorption was recorded at 726,000 sf that was
main streets and malls in most locations due to
higher by around 56% than previous quarter.
limited demand from retailers and low consumer
364,000 sf of new supply was infused during the
spending. Overall mall vacancy levels inched up
second quarter. Overall vacancy levels dropped
higher by about 1.4 percentage points as compared
marginally by 0.5 percentage point as net
to the previous quarter and was recorded at 26.7%
absorption increased during the quarter and major
during the second quarter. All of the expected mall
chunk of the expected supply got deferred to the
supply got deferred due to lower demand from
next quarter. Grade A rentals inched up marginally at
retailers.
Off-CBD II, Suburban East and Extended Suburban
TRENDS AND UPDATES
Capital values in the secondary market remained
demand from end-users due to lower ticket size
stable during the second quarter of the year. End-
apartments available. Prominent projects like
users showed preference for mid-end developments
Kohinoor Shangrila in Pimpri and One North in
rather than the high-end segment. Projects in north-
Hadapsar were delivered during the quarter.
east and south-east Pune witnessed healthy
40
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
Koregaon Park, Boat Club
9.6 - 12.7
8.5 - 10.7
9.0 - 13.0
13.0 - 15.5
14.0 - 17.0
14.0 - 17.0
14.0 - 17.0
Aundh
4.9 - 6.1
5.0 - 5.2
5.0 - 5.5
5.0 - 6.0
8.0 - 10.0
8.0 - 10.0
8.0 - 10.0
Baner
NA
NA
5.0 – 6.5
6.5 – 7.5
8.0 – 10.0
8.0 – 10.0
8.0 – 10.0
Kalyani Nagar
7.6 - 9.6
7.3 - 9.2
8.0 - 12.0
8.0 - 12.5
12.0 - 14.0
12.0 - 14.0
12.0 - 14.0
Wanowrie, NIBM, Kondhwa
3.4 - 4.5
3.3 - 3.6
4.0 - 5.0
4.0 - 5.5
5.0 - 6.2
5.0 - 6.2
5.0 - 6.2
Location
Average Capital Values – Mid End (INR '000/sf)
2008
2009
2010
2011
2012
1Q 2013
2Q 2013
Koregaon Park, Boat Club
4.5 - 5.0
4.5 - 5.5
6.0 - 7.0
6.0 - 7.0
8.0 - 10.0
8.0 - 10.0
8.0 - 10.0
Aundh
3.5 - 4.0
3.6 - 4.2
4.0 - 5.0
4.5 - 5.5
6.0 - 7.0
6.0 - 7.0
6.0 - 7.0
Baner
3.0 - 3.8
2.9 - 3.6
3.5 - 5.5
4.0 - 5.5
5.0 - 6.0
5.0 - 6.0
5.0 - 6.0
Wakad
2.5 - 3.0
2.2 - 2.8
3.5 - 4.0
3.7 - 4.5
4.0 - 4.7
4.0 - 4.7
4.0 - 4.7
Kalyani Nagar
4.5 - 5.5
4.5 - 5.5
6.5 - 7.0
6.5 - 7.5
7.0 - 8.0
7.0 - 8.0
7.0 - 8.0
Wanowrie, NIBM Road,
Kondhwa
3.0 - 3.2
2.8 - 3.1
4.0 - 5.5
4.0 - 5.5
4.8 - 6.0
4.8 - 6.0
4.8 - 6.0
Location
New projects launched during the second quarter
total units launched during the second quarter.
of 2013 comprised of around 4,400 units, almost one-
Significant launches also took place in the Aundh,
third lower than the launches in the preceding quarter.
North-east and Pimpri submarkets. Some of the
Majority of the new launches were observed in mid
prominent projects that were launched during the
segment (75%) followed by the high-end segment
quarter included high end residential projects like
which contributed about 22%. The NH4 Bypass
Casa Jewel by Mantri Properties on Magaldas Road
(North) submarket witnessed a majority (25%) of the
and L'Artista by Mahindra Lifespaces in Sopan Bang.
Project Name
Developer
Location
Number
of Units*
Type
Kul Ecoloch
KUL
Mahalunge
700
Apartment
1BHK: 550
2BHK: 1010
L-Axis
Pharande Spaces
Pradhikaran
Sector - 6
700
Apartment
2, 2.5 and
3BHK: 900 to 1500
Majestic Towers
Jairaj Group
Bibwewadi
250
Apartment
2BHK: 1220 to 1240
3BHK: 1500 to 1591
Brahma Skycity
(15 Acres)
Brahma Realty &
Infrastructure
Dhanori
240
Apartment
2BHK: 954 to 961
3BHK: 1160 to 1360
Tamara
Goldfinger Kataria Urban
Developments
Rahatani
220
Apartment
2BHK: 1100
2.5BHK: 1300
3BHK: 1500
Western Hills
(40 Acres) Phase I
Atul Enterprises
Baner
182
Apartment,
Villa
3BHK to ;
3.5BHK to ;
4BHK to ;
4.5BHK (Villas) to 5000
41
Project Name
Developer
Location
Number
of Units*
Type
Grand View
Phase III
Tyagi Properties, G.Mittal &
sons & Trimurti Group
Ambegaon
172
Apartment
1BHK: 550
2BHK: 760 to 1128
Kundan Eternia
Kundan Spaces
Sopan Baug
168
Apartment
2BHK: 1324 to 1427
3BHK: 1510 to 1782
Artemis
Calyx Corp
Sinhagad Road
144
Apartment
2BHK: 1052 to 1164
El Castillo
Bright Era Developers
Wagholi
130
Apartment
1BHK: 636
2BHK: 883 to 905
DSK Sadaphuli
DSK Developers
Talegaon
124
Apartment
1BHK: 656
2BHK: 1000
Mont Vert Belbrook
Mont Vert
Bhugaon
106
Apartment
2BHK: 744
2.5BHK: 857
3BHK: 1184
Inora Park Phase II
Tata Housing
Undri
100
Apartment
3BHK: 1400
Galaxy One (3 Acres)
Galaxy
Kharadi
92
Apartment
2BHK: 1149
Marvel Brisa
Marvel Realtors
Balewadi
90
Apartment
2BHK: 2062
3BHK: 1870
3BHK+Servant: 2800
Urban Soul
Urban Homes
Kharadi
88
Apartment
2BHK: 1008 to 1091
Kumar Pinakin
Kumar Builders
Mohan Nagar,
Baner
88
Apartment
2BHK: 1062
3BHK: 1444 to 1473
Atlantica East
Gauree Space Creator
Keshav Nagar,
Mundhwa
86
Apartment
2BHK: 940
3BHK: 1222
Solacia Phase II
Belvalkar Housing
Wagholi
86
Apartment
2BHK: 1062 to 1103
Nandan Spectra
Nandan
Balewadi
76
Apartment
2BHK: 1065 to 1173
Le Reve
Ami Estates LLP
Kharadi
64
Apartment
2BHK: 1171 to 1225
3.5BHK: 1587 to 1680
One Nation
Mittal Brothers Pvt. Ltd.
Pimple Saudagar
64
Apartment
3BHK: 2036 to 2090
4BHK: 2491 to 2615
Greenland County
Phase II
Darod-Jog
Narhe
64
Apartment
2BHK: 800 to 814
Nyati Epitome
Nyati Builders
NIBM
64
Apartment
1350 to 2017
Jubilation
Akanksha Builders
Kondhwa Annexe
60
Apartment
1BHK: 611 to 642
2BHK: 940 to 965
Ritz
Navalakh Group
Kharadi
51
Apartment
2BHK: 1030 to 1230
Zenistry
PGM Associates
Baner
44
Apartment
2BHK: 1146 to 1163
Ganga Bhagyoday
Phase-I
Goel Ganga
Sinhagad Rd
42
Apartment
3BHK: 1630 to 1750
Nandan Aspira
Nandan
Aundh
29
Apartment
4BHK: 3500 to 4500
Riviera Valentina
Skywards & Kanakraj
Developers
Baner
22
Apartment
3BHK: 1900 to 2900
L'Artista
Mahindra Lifespace
Sopan Baug
21
Apartment
3BHK: 3600
4BHK: 4500
Supreme Palms 2
Supreme Universal
Balewadi
21
Apartment
2BHK: 1340
3BHK: 1600
Vivero Supreme
Pallacio Phase toII
Supreme Universal
Baner Rd
9
Apartment
4BHK: 4000
Casa Jewel
Mantri Properties
Mangaldas Road
8
Apartment
4BHK: 4000
Shivalaya
Vilas Javdekar Developers
Kothrud
6
Apartment
2BHK: 1101
3BHK: 1496
42
Large scale under-construction activity was
levels of unsold stock. Quite a few developers are
witnessed in Aundh-Ravet Road, Baner, Wakad,
also offering subvention schemes where upfront
Hinjewadi upto Mamurdi and Gahunje during the
payment is lower both in mid-end and high-end
quarter. Further, most sub-markets did not witness
developments to boost sales.
any major change in capital values owing to high
The overall leasing activity gained momentum on
Grade A space which offers cost savings due to lower
the back of consolidations and relocations and was
rentals. An upward movement in weighted average
recorded at around 850,000 sf, which is almost
rentals was observed in most micro markets on
double the previous quarter. Grade A net absorption
account of higher transaction activity and limited
was recorded at 726,000 sf, a q-o-q rise of around
infusion of supply of approximately 364,000 sf as
56%. The demand was mainly led by IT-BPM sector
majority of the expected supply during the second
that contributed more than two third in the total
quarter got deferred to the next quarter. The overall
absorption, followed by BFSI, pharmaceutical and
vacancy levels dropped marginally by 0.5
manufacturing sectors. Occupiers preferred to take
percentage point; however the extended suburban
up office spaces in peripheral and suburban
districts which got maximum share of the supply saw
locations such as Off CBD II, Suburban East and
vacancies rise marginally.
Peripheral I respectively due to availability of quality
Retail Sector
Main streets especially in locations such as
all locations barring Nagar Road witnessed drop in
Koregaon Park and FC Road witnessed healthy
rentals in a range of 8% to 17% due to limited
enquiries during the second quarter from F&B
demand, low consumer spend and retailers shifting
segment. Main street rentals remained stable in
focus to better quality space. Leasing activity in
most locations, however; MG Road and Koregaon
malls was majorly driven by apparel segment.
Park witnessed drop in rentals by 3% and 10%
Premium lifestyle brands such as Eva Danielle,
respectively over the previous quarter on account of
People and Splash made foray into the city. During
limited options of quality space coupled with traffic
the second quarter the overall mall vacancy inched
and parking woes. Aundh was an exception amongst
up higher by 1.4 percentage points as compared to
main street locations that witnessed appreciation in
the previous quarter and was recorded at 26.7%.
rentals due to a good catchment area and low
Due to weak demand, all of the upcoming mall supply
availability of quality retail space. Rentals in malls in
has been deferred to a later date.
43
Outlook
The capital values in the high end residential
companies could result in overall vacancy level
properties across sub markets are expected to
increasing. However, rentals in select micro-
remain stable in short term due to high supply but
markets are expected to remain stable considering
subdued demand. Mid segment may witness some
the anticipated high transaction activity fuelled by
appreciation in capital values in North and East sub
continued demand for quality space which is
markets on account of steady demand from end
readily available in the city at relatively cheaper
users working in nearby locations and good
rentals.
property options available at attractive price
points.
In the commercial office space, cautiousness is
Rentals in main street locations are expected to
be stable in the coming quarter; however JM Road
and Aundh may witness some appreciation in
expected among corporate occupiers towards
rentals due to healthy demand and limited
expansion however relocations have led to
availability of quality retail space. Vacancy levels in
increased leasing activity. Deferred supply which
malls are expected to drop in the absence of new
was likely to come up during the second half of the
supply as a mall in Hadapsar got further deferred.
year coupled with sluggish expansion plans by
44
This research report has been prepared by Cushman & Wakefield
specially for distribution to Citibank customers.
GENERAL DISCLOSURE
Disclaimer – Cushman & Wakefield
All data, figures, information provided hereto are provided and/or collated by Cushman & Wakefield India and that Citibank or any of its
representatives, officers, employees or affiliates makes no representations or warranties as to the accuracy or completeness of any
information furnished hereto. This report has been prepared by Cushman & Wakefield India solely for information purposes. It does not
purport to be a complete description of the markets or developments contained in this material. The information on which this report is based
has been obtained from sources that Cushman & Wakefield India believes in its reasonable bona fide faith to be reliable, but Cushman &
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of the information therein. This report contains information available to the public and has been relied upon by Cushman & Wakefield on the
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The market data and information herein contained (“Information”) is the product or service of a third party not affiliated to Citibank NA, Citigroup
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way represents the opinion or view of Citibank NA, Citigroup Inc or Its Affiliates. The properties/projects that are indicated/mentioned herein
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45

Quarter 2, 2013

Transcription

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