This is our third edition of the flagship half yearly report - India Real Estate. It presents a comprehensive analysis of the residential and office market performance of the Bengaluru Region for the period between January–June 2015 (H1 2015).

1. BENGALURU
RESIDENTIAL
JANUARY TO JUNE 2015

2. RESIDENTIAL
MARKET UNDER
STRESS FOR THE
FIRST TIME
Will a resilient Bengaluru join the bandwagon of NCR and Mumbai?
Is this a one-off phenomenon or a trend to watch for?

3. NEW LAUNCHES DROP BY 40% Y-O-Y;
DEVELOPERS RESTRICT NEW LAUNCHES
42,155
36,145
35,545
32,589
21,400
31,844
25,522
27,256
28,445
22,234
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
No.ofunits
Launches Sales

4. PRICE SEES A SLOW GROWTH
4,020
4,296 4,473
4,585 4,650
0
1000
2000
3000
4000
5000
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
INR/sq.ft.

5. NORTH BENGALURU
EXUDES OPTIMISM

6. NORTH INCREASING ITS SHARE IN
LAUNCHES AND SALES Y-O-Y
23% 22%
26%
23%
20%
37%
19%
29%
45%
32%
48%
40%
12%
9%
7% 8%
0%
10%
20%
30%
40%
50%
60%
H1 2014 H1 2015 H1 2014 H1 2015
LAUNCHES SALES
Central East North South West8,221
7,029
16,107
4,162
4,759
6,812
1,947
7,882
26
63
6,961
5,247
13,050
1936
74
5,034
6,455
8,901
1,771

7. ELECTRONICS CITY,
KANAKAPURA ROAD
IN SOUTH MOST
AFFORDABLE

8. 75% OF NEW LAUNCHES BELOW
INR 2.5 MN IN SOUTH
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
<`2.5 mn `2.5-5 mn `5-7.5 mn `7.5-10 mn `10-20 mn >`20 mn
Central East West North South
INR

9. YESHWANTHPUR,
RAJAJINAGAR IN THE
WEST RELATIVELY
BETTER LOCATIONS
DUE TO METRO
CONNECTIVITY

10. HOWEVER, SOUTH AND EAST
MARKETS SUFFER
6
7
8
9
10
6 7 8 9 10
AgeofInventory
QTS
CENTRAL
SOUTH
NORTH
EAST
WEST

11. PREMIUM MARKET
WITH APARTMENTS
MORE THAN
INR 2 CRORE
REFLECTS OVERALL CITY
TREND

12. LAUNCHES CONTRACT, SALES
RELATIVELY STEADY
1,296
2,036
1,081
1,314
1,058
1,289
1,201
822
846
756
7,273
7,837
8,182
8,351
8,619
6500
7000
7500
8000
8500
9000
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
Launches Sales Wt. Avg. Price (RHS)

13. IT WILL TAKE AROUND
2.5 YEARS TO OFFLOAD
UNSOLD INVENTORY IN
PREMIUM MARKETS;
CITY TO TAKE 2 YEARS

14. SLOWER SALES IN PREMIUM MARKETS
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
No.ofquarters
PREMIUM MARKETS
CITY

15. NEW LAUNCHES TO
IMPROVE IN THE NEXT 6
MONTHS DUE TO ENHANCED
BUSINESS SENTIMENT AND
INCREASED OFFICE
ABSORPTION BY E-COMMERCE
AND IT/ITeS

16. OUTLOOK FOR THE NEXT 6 MONTHS
LAUNCHES
(UNITS)
SALES
(UNITS)
WEIGHTED
AVERAGE PRICE
(INR/SQ FT)
H2 2014 32,590 28,445 4,585
H1 2015 21,400 22,230 4,650
H2 2015 E 29,700 27,900 4,751

17. HOW DOES BENGALURU
STAND WHEN
COMPARED TO OTHER
CITIES

18. LAUNCHES- BENGALURU HAS THE
HIGHEST AMONG 8 CITIES
H1 2015
BENGALURU 21,400
MUMBAI 18,887
PUNE 12,762
NCR 11,360
CHENNAI 9,102
KOLKATA 8,372
AHMEDABAD 8,062
HYDERABAD 5,457
H1 2014 H2 2014
MUMBAI 35,512 26,833
NCR 35,500 37,643
BENGALURU 35,545 32,589
PUNE 16,883 16,700
CHENNAI 11,377 7,318
HYDERABAD 7,899 5,151
KOLKATA 8,444 11,891
AHMEDABAD 9,021 4,991

19. SALES - BENGALURU SURPASSES
H1 2015
MUMBAI 28,446
BENGALURU 22,234
PUNE 15,524
NCR 14,250
CHENNAI 9,091
AHMEDABAD 7,751
HYDERABAD 7,123
KOLKATA 5,883
NCR AND EMERGES AS THE 2ND LARGEST
H1 2014 H2 2014
MUMBAI 31,210 36,505
NCR 28,500 12,075
BENGALURU 27,256 28,445
PUNE 14,719 20,150
CHENNAI 10,315 10,643
AHMEDABAD 10,472 8,019
HYDERABAD 7,282 7,829
KOLKATA 6,390 6,245

20. BENGALURU REMAINS ONE OF THE
BEST PERFORMING MARKETS IN INDIA
5
7
9
11
13
15
5 7 9 11 13 15 17 19
Ageofunsoldinventoryinquarters
QTS
MUMBAI
PUNE
AHMEDABAD
HYDERABAD
KOLKATA
NCR
BENGALURU
CHENNAI

21. BENGALURU
OFFICE
JANUARY TO JUNE 2015

22. OFFICE MARKET
PERFORMING WELL
Will Bengaluru be able to maintain its lead in office demand?
Will the supply be able to catch up with the demand?
Will the IT/ITeS sector continue to lead the demand?

23. VACANCY REACHES SINGLE DIGIT AT
8%, LOWEST IN THE COUNTRY
101.0
106.5
109.5
114.0
118.0
122.5
87.0
91.9
97.9
102.3
108.3
113.3
14%
14%
11% 10%
8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
20
40
60
80
100
120
140
Mn.Sq.ft.
Stock Occupied Stock Vacancy (RHS)

24. DEMAND OUTSTRIPPING SUPPLY IN 2015,
DEPLETING READY QUALITY OFFICE
SPACE A CONCERN1.70
5.50
3.00
4.50
4.00
4.50
4.65
4.89
6.01
4.40
6.07
5.00
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Mn.Sq.ft.
New Completion Absorption

25. SHARE OF IT/ITeS
DIPS, EMERGENCE
OF E-COMMERCE

26. OTHER SERVICES SECTOR INCREASES
SHARE; AMAZON, FLIPKART PICKS PRE-
COMMITTED SPACE
54%
6%
15%
24%
53%
13%
4%
29%
50%
3%
11%
36%
0%
10%
20%
30%
40%
50%
60%
IT/ITeS BFSI Manufacturing Other Service Sectors
H1 2014 H2 2014 H1 2015
3.25
2.35
3.04
0.40
0.58
0.18
0.92
0.18
0.67
1.44 1.29 2.19
ALL NUMBERS IN MN SQ FT

27. OUTER RING ROAD
CONSOLIDATES ITS
POSITION AS THE
LARGEST OFFICE HUB

28. SARJAPUR ROAD IN ORR MAJOR
CONTRIBUTOR TO THE ABSORPTION
4%
9%
71%
13%
3%2%
16%
69%
8%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
CBD & Off CBD SBD ORR PBD East PBD South
H1 2014 H1 20150.21
0.09
0.55
0.97
4.29
4.19
0.76
0.49
0.19
0.33
ALL NUMBERS IN MN SQ FT

29. DEMAND CONTINUES
TO OUTSTRIP SUPPLY
IN THE COMING 6
MONTHS, VACANCY TO
REMAIN STEADY

30. OUTLOOK FOR THE NEXT 6 MONTHS
NEW
COMPLETIONS
(MN SQ FT)
ABSORPTION
(MN SQ FT)
VACANCY
WEIGHTED
AVERAGE
RENT
(INR/SQ FT/MONTH)
H2 2014 4.5 4.4 10% 48.5
H2 2015E 4.5 5.0 8% 51.5
GROWTH 0% 14% 6%

31. UNTAPPED POTENTIAL IN
THANISANDRA,
NAGAWARA
NORTHERN CORRIDOR TO SEE DEMAND
OWING TO RESIDENTIAL TRACTION,
IMPROVED INFRASTRUCTURE, LOWER
RENTALS AND GOOD CONNECTIVITY TO CBD

32. HOW DOES BENGALURU
STAND WHEN COMPARED
TO OTHER CITIES

33. SCARCITY IN QUALITY OFFICE SPACE –
HIGHEST IN BENGALURU
22%
21%
8%
15%
18%
16%
0%
5%
10%
15%
20%
25%
-
1
2
3
4
5
6
7
Mumbai NCR Bengaluru Pune Chennai Hyderabad
mnsqft
New completions Absorption Vacancy (RHS)
H1 2015

34. AVERAGE DEAL SIZE LARGEST
IN BENGALURU
21,430
25,622
71,577
21,434
24,520
24,702
23,291
21,872
54,253
40,773
34,507
18,585
-
20,000
40,000
60,000
80,000
Mumbai NCR Bengaluru Pune Chennai Hyderabad
sqft
H1 2014 H1 2015

35. KEY TAKEAWAYS
RESIDENTIAL
BENGALURU
ONE OF THE MOST RESILIENT MARKETS OF INDIA UNDER STRESS FOR THE
FIRST TIME
OFFICE
BENGALURU
THE COUNTRY’S LARGEST OFFICE MARKET REELS UNDER SCARCITY OF
GOOD QUALITY OFFICE SPACE

36. Q&A