India property market overview 1Q 2011-India
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India property market overview 1Q 2011-India Document Transcript

  • 1. PropertyMarket OverviewINDIAQUARTERLY UPDATE | APRIL | 2011 Accelerating success.
  • 2. TABLE OF CONTENTSINDIA PROPERTY MARKET OVERVIEW | 1Q2011ECONOMIC OVERVIEW ………………………………………………………………….................................................3CITY OVERVIEWS- MUMBAICOMMERCIAL & RESIDENTIAL MARKET ……………..................................…………………...............4- DELHICOMMERCIAL & RESIDENTIAL MARKET…………………………..........…...........................................6- GURGAONCOMMERCIAL & RESIDENTIAL MARKET………………………...........………........................................8- NOIDACOMMERCIAL & RESIDENTIAL MARKET…………………..............…………....................................…10- CHENNAICOMMERCIAL & RESIDENTIAL MARKET……………………...……….................................................12- BENGALURUCOMMERCIAL & RESIDENTIAL MARKET……………………………...................................................…14- KOLKATACOMMERCIAL & RESIDENTIAL MARKET………………............................................................……16- PUNECOMMERCIAL MARKET …………………………………………………..............................................................18GLOSSARY OF WORDS 19CONTACT INFORMATION 20
  • 3. COLLIERS INTERNATIONALSYDNEY CENTRAL BuSINESS DISTRICTTHE KNOWLEDGE REPORTRESEARCH & FORECAST REPORT MACRO ECONOMIC OVERVIEW ECONOMIC INDICATORS • RBI estimated GDP growth of 8.5% for 1Q2011, an increase of 250 basis points from the Gross Domestic Product at factor cost 1Q2010 estimate of 6%. The increase in the 10.00% 9.00% GDP growth rate is attributed to robust 8.00% economic growth and positive investor 7.00% 6.00% sentiment globally over the past four quarter. 5.00% In Percentage 4.00% 3.00% • Foreign Direct Investment (FDI) inflow for the 2.00% fiscal year April 2010 - Jan 2011 increased to 1.00% 0.000% INR 77,902 crore. Housing and real estate Jan - Mar 09 Apr - Jun 09 Jul - Sep 09 Oct - Dec 09 Jan - Mar 10 Apr - Jun 10 Jul - Sep 10 Oct - Dec 10 Jan - Mar 11 ECONOMIC BAROMETER contribution to total FDI soared to 12% against 7% in the previous quarter. More than 60% Mar-10 Mar-11 of the total FDI was attracted from countries FDI in Real Estate like Mauritius, Singapore, United States and 16000 REPO RATE 5% 6.75% United Kingdom. 14000 12000 REVERSE REPO RATE 3.50% 5.75% 10000 • Union Budget 2011 was presented this quarter INR Crore 8000 CRR 5.75% 6.0% by Finance Minister Mr. Pranab Mukherjee. 6000 Overall the budget emphasizes on inclusive 4000 INFLATION 10.23% 9.0% growth to agriculture, Infrastructure, rural 2000 0 development and capital markets through April- Jan 2011 2006 - 07 2008 - 09 2009 - 10 2005 - 06 2007 - 08 TREASURY BOND RATE 7.91% 7.97% various direct and indirect incentives. TheFIxED DEPOSIT (< 1YEAR) 6% 8.25% budget remained silent on the major issues pertaining to real estate including status of FOREIGN ExCHANGE Software Technology Parks of India, FDI in 150 BSE Sensex & Realty Index 140 INR - USD 45.14 44.65 retail, industry status to real estate. 130 120 INR- EURO 60.56 63.24 110 • Capital markets remained volatile during the 100 quarter; BSE Sensex closed at 19,445 as on 90 80 31st Mar, 2011 showing a appreciation of 70RETuRN ON ALTERNATIVE INVESTMENTS 10.94 percent YoY. 60 50 1-Jan-11 10-Jan-11 18-Jan-11 27-Jan-11 4-Feb-11 14-Feb-11 22-Feb-11 3-Mar-11 11-Mar-11 21-Mar-11 29-Mar-11 Mar-10 Mar-11 YoY % • In a measure to control inflation RBI further Change hiked repo and reverse repo rates by 50 basis *Rebase to 100 BSE Sensex Realty Index GOLD 16,620 21,050 26.65% points to 6.75% and 5.75%. Inflation decreased to 9% in 1Q2011 against 10.23% in the same 110 Exchange Rates SILVER 27,255 56,660 107.9% quarter last year. 105 EQUITY (BSE • ·Indian Rupee remained marginally strong 100 SENSEx) 17,528 19,445 10.94% against USD, closing at 44.65 on 31st Mar, REALTY INDEx 3,225 2,337 -27.53% 2011. Whereas it weakened against Euro 95 closing at 63.24on 31st Mar, 2011. This change is primarily attributed to the improved 90 1-Jan-11 10-Jan-11 18-Jan-11 27-Jan-11 4-Feb-11 14-Feb-11 22-Feb-11 3-Mar-11 11-Mar-11 21-Mar-11 29-Mar-11 economic conditions in the west. *Rebase to 100 INR/Euro INR/USD Source: Colliers International India Researchwww.colliers.com
  • 4. THE KNOWLEDGE REPORT | Q1 2011 | cOMMERcIAL | MUMbAI COMMERCIAL SuPPLY IN PRIME AREAS • Total grade ‘A’ office stock available for fit-out in 1Q2011 was over 11 million sq ft. More than CBD 0.5% 65 per cent of this available supply was in the LBS / Thane 22% Andheri East 19% form of IT/ITeS office space, concentrated in Lower Parel, Navi Mumbai and Thane. BKC 6% Kalina 1% • In 1Q2011 Lotus Info Park developed by Goregaon / JVLR 10% Nouvelle Realty in Parel (SBD) and Times Square developed by Neelkanth Tech Park Worli/Prabhdevi 1% Lower Parel 19% in Andheri (PBD) were completed, adding Powai 6% approximately half a million sq ft of office Navi Mumbai 11 % Malad 5% space to Mumbai’s total grade ‘A’ office stock.MUMBAI • New projects launched this quarter include 1Q2011 GRADE ‘A’ AND GRADE’B’ “C-66” by Wadhwa Group in Bandra Kurla RENTAL VALuES Complex (BKC), “xion” by Raheja developersCITY OFFICE BAROMETER in Byculla, and “ August House” by Dheeraj 300 Realty in Andheri (E). These projects will add 250 4Q2010 1Q2011 approximately 2 million sq ft of new supply in 200 the city’s Grade ‘A’ inventory by 2013. 150 INR Per Sq ft Per Month VACANCY 100 • Rental values remained stable in most of the 50 ABSORPTION micro markets in Mumbai, despite increased 0 CBD Andheri East BKC Lower Parel Malad Navi Mumbai Powai Worli/Prabhdevi Goregaon / JVLR Kalina Thane / LBS Andheri East (IT) Lower Parel (IT) Malad (IT) Navi Mumbai (IT) Powai (IT) Goregaon / JVLR (IT) Thane / LBS (IT) CONSTRuCTION absorption. This was primarily due to ample stock availability and continuous addition of RENTAL VALuE new supply. Micro markets such as Lower Grade A Grade B Parel in SBD and Andheri (E), Malad, Navi Mumbai and Thane in PBD witnessed minor corrections in rental and capital values in anticipation of large upcoming supply in the GRADE ‘A’ AVERAGE RENTAL VALuE short to medium term. PRIME OFFICE SPACE RENTAL TREND 300 • Recently nodal agency for airports, City and 520 Forecast Industrial Development Corporation (CIDCO) 470 420 250 has revised the land use plan of proposed Navi 370 320 200 Mumbai Airport. Accordingly, no commercial 270 220INR per Sq ft per Month INR per Sq ft per Month 150 structures are allowed in the vicinity of 2,753 170 100 hectares airport land, due to environmental 120 70 concerns. 20 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 50 CBD Andheri East Malad BKC 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 Lower Parel Navi Mumbai Powai Worli / Prabhadevi Goregaon Kalina Thane / LBS / JVLR MARKET TRANSACTIONS CLIENT BUILDING NAME AREA LOCATION TRANSACTION TYPE (SQ. FT.) Sterling Infosystems G Corp Tech Park 50,000 Thane Lease Priviledge Kaledonia 45,000 Andheri Lease Hanger Biotech Ackruti Solaris 20,000 Andheri Sale Ace Energy Infrastructure Pvt. Ltd Ackruti Solaris 15,000 Andheri Sale Star TV Indiana Business Center 14,400 Andheri Lease Goyal & Company Kaledonia 10,000 Andheri Lease Source: Colliers International India ResearchP. 4 | COLLIERS INTERNATIONAL
  • 5. THE KNOWLEDGE REPORT | Q1 2011 | REsIDENTIAL | MUMbAI RESIDENTIAL 1Q2011 PREMIuM RESIDENTIAL AVERAGE CAPITAL VALuE • This quarter, in the luxury segment a number 75000 of projects were launched in Mumbai, including 70000 65000 60000 “Seasons” by Rustomjee, “Azzure” by Lodha 55000 50000 45000 Group, “Invictus” and “Oculus” by Ekta World 40000 35000 INR per sq ft 30000 and “Sparkle” by Kalptaru Developers. In the 25000 20000 affordable category only two major projects 15000 10000 5000 were launched; “Orchid Views” by DB Realty 0 Khar Colaba, Cuffe Parade Malabar Hill, Altamount Road, Carmichael Road Breach Candy, Napeansea Road, Peddar Road Worli Prabhadevi Bandra Santacruz Andheri Juhu and “Central” by Ahuja Builder. • A small number of apartments was added to Mumbai premium residential stock this quarter in Central Mumbai area. The project that primarily contributed to this addition in the inventory was “Orchid Enclave” by DBMUMBAI Realty. CAPITAL VALuE TRENDS • Capital Values for the premium residentialCITY RESIDENTIAL BAROMETER market remained stable in 1Q2011 in almost all 75000 the micro markets. Rental values also showed 65000 4Q2010 1Q2011 a stable trend, except for a minor appreciation 55000 45000 in Worli & Prabhadevi in central Mumbai, 35000 RENTAL VALuE and Powai & Juhu in the north Mumbai area, 25000 INR per sq ft owing to limited supply. CAPITAL VALuE 15000 5000 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 1Q2011 4Q2010 • Recently a number of developers were buying or in the process of acquiring premium Breach Candy, Khar Colaba, Cuffe Andheri Napeansea Road, Parade residential plots in south and central Mumbai Peddar Road Prabhadevi Bandra Worli Santacruz Malabar Hill, Altamount Road, Carmichael areas to build high end residential properties. Juhu RoadPROJECT LAuNCHED IN 1Q2011 This quarter “Nowroz Building” at Girgaum Chowpatty has been bought by a Pune-basedPROJECT NAME LOCATION developer. DB Realty and Orbit Realtors are 1Q2011 PREMIuM RESIDENTIAL AVERAGEOrchid Views Jacob Circle in the process of buying premium properties RENTAL VALuE located at Bandra (E) and Neapeansea Road,Seasons Gandhi Nagar respectively. Bandra (E) Malabar Hill, Altamount Road, Carmichael Road Breach Candy, 200 Napeansea Rd.,Azzure Powai • In a major policy change, the floor space Powai 150 Peddar rd.Invictus Dadar index for areas falling under CRZ limits 100 Colaba, Cuffe Andheri INR per Sq ft Per Month has been increased from 1.3 to 2.5. Last ParadeOculus Chembur 50 quarter the Environment Ministry had 0Central Khar West approved re-development of slum clusters Juhu PrabhadeviSparkle Gandhi Nagar located at western coastal belt from Colaba Bandra (E) to Dahisar. This decision was taken to make Santacruz Worli redevelopment of these areas more realistic Khar Bandra and beneficial for all the parties involved in the redevelopment process. MARKET TRANSACTIONS CLIENT PROPERTY AREA LOCATION TRANSACTION TYPE CLASSIFICATION (SQ. FT.) Individual Apartment 5,400 Bandra Sale Mizhou Bank Apartment 3,000 Bandra Lease Individual Apartment 2,500 Bandra Lease Vodafone Apartment 2,500 Bandra Lease Individual Apartment 2,130 Parel Sale Source: Colliers International India Research COLLIERS INTERNATIONAL | P. 5
  • 6. THE KNOWLEDGE REPORT | Q1 2011 | cOMMERcIAL | DELhI COMMERCIAL SuPPLY IN PRIME AREAS • Approximately 1 million sq ft of grade ‘A’ office space was available for fit-out in Delhi this Nehru Place 10% quarter, primarily in Jasola and Saket. Connaught Place 2% Saket 29% • Rental values remained stable in most of the micro markets, barring CBD, where minor appreciation was registered. • No new supply was added in the city’s grade Jasola 59% ‘A’ office space this quarter either. • In a major policy decision the state government revised the circle rate in Delhi. In some areas the circle rate was doubled. Since 2007DELHI this is the first time the circle rate has been 1Q2011 GRADE ‘A’ AND GRADE’B’ revised in Delhi. This will help to increase RENTAL VALuES transparency in real estate transactions in theCITY OFFICE BAROMETER city. (The circle rate is the minimum rate for 350 land on which properties get registered.) 300 4Q2010 1Q2011 250 • In order to further boost real estate 200 INR per Sq Ft per Month VACANCY development in the city, the Delhi 150 Development Authority (DDA) is planning to 100 ABSORPTION introduce a new land policy on the model of 50 CONSTRuCTION public-private participation in land assembly, 0 Nehru Place Connaught Place Jasola Saket Netaji Subhash place development, constructions, management and RENTAL VALuE maintenance. Grade A Grade B • In a bid to improve infrastructure, Delhi Metro’s “Airport Express”, the country’s first metro rail corridor to to be developed on the GRADE ‘A’ AVERAGE RENTAL VALuE public-private-partnership model, became PRIME OFFICE SPACE RENTAL TREND operational this quarter. It’s a 23-km high- 280 speed link that promises a smooth ride 500 260 Forecast to commuters from Connaught Place, the 450 240 commercial hub of the city, to Terminal-3 of 400 350 the IGI Airport. INR per Sq ft per MonthINR per Sq ft per Month 220 300 200 250 180 200 150 160 100 140 50 120 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 Nehru Place Jasola Cannaught Saket place Netaji Subhash MARKET TRANSACTIONS CLIENT BUILDING NAME AREA LOCATION TRANSACTION TYPE (SQ. FT.) BSE Gopaldas Bhavan 16,000 Barakhamba Road Lease Avaya India MGF Metropolitan 15,000 Saket Lease Springer Publication Vijaya 11,000 Barakhamba Road Lease MCx The Grande 4,000 Vasant Kunj Lease Gazprom Bank Community Center 1,800 Malcha Marg Lease Source: Colliers International India ResearchP. 6 | COLLIERS INTERNATIONAL
  • 7. THE KNOWLEDGE REPORT | Q1 2011 | REsIDENTIAL | DELhI RESIDENTIAL 1Q2011 PREMIuM RESIDENTIAL AVERAGE CAPITAL VALuE • A few redevelopment projects were completed this quarter in south Delhi locations such as 80000 Shanti Niketan, Satya Niketan, Anand Niketan 70000 60000 and Maharani Bagh. Projects launched this 50000 quarter include only redevelopment projects 40000 by local developers in Vasant Vihar, Ananad 30000 INR Per SqFt 20000 Niketan, Westend and Chanakya Puri. 10000 0 Sunder Nagar Prithviraj Road, Aurangzeb Road Chanakya Puri Golf Links, Jor Bagh, Shanti Niketan, Westend Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh Greater Kailash I & II, South Extension Vasant Vihar Anand Niketan, • Stable demand from end users and absence of new supply within Lutyen’s Delhi Zone in premium housing category has resulted in an appreciation of 3 to 5 per cent in prime areas such as Golf Links and Chanakya Puri. Prime residential properties in South Delhi areasDELHI such as Shanti Niketan, Westend, Anandlok, Niti Bagh, Friends Colony, Maharani Bagh, GKI CAPITAL VALuE TRENDS & II, and South Ex also registered an increaseCITY RESIDENTIAL BAROMETER in the range of 5 to 9 per cent quarter-on- 85000 quarter. 75000 65000 4Q2010 1Q2011 55000 • Rental values in area such as Prithviraj Road, 45000 35000 RENTAL VALuE Aurangzeb Road, Chanakya Puri, Golf Links, INR Per Sq Ft 25000 Shanti Niketan, Westend remained stable 15000 CAPITAL VALuE 5000 during the quarter. However rental values 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 in relatively less expensive areas such as Panchsheel, Ananad Lok, Friends Colony, Golf Links, Jor Bagh, Sunder Nagar Prithviraj Road, Aurangzeb Road Chanakya Puri Shanti Niketan, Westend Maharani Bagh and other south Delhi areas Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh have started picking up and showed an Greater Kailash I & II, South Extension Anand Niketan, Vasant Vihar appreciation in the range of 5 to 10 per cent quarter-on-quarter. 1Q2011 PREMIuM RESIDENTIAL AVERAGE • This quarter the Municipal Corporation of RENTAL VALuE Delhi (MCD) started an amnesty scheme to provide incentive to property taxpayers in its area for settlement of cases under the Unit Prithviraj Road, Aurangzeb Road 140 Area Method of evaluating property tax. The Anand Niketan, 120 Chanakya Puri Vasant Vihar 100 scheme will provide a waiver of interest and 80 60 INR per Sq ft Per Month penalty subject to up-to-date payment of Greater 40 20 property tax. The MCD would henceforth not Kailash I & II, South 0 Golf Links, Jor Bagh, Sunder Nagar Extension launch any amnesty or settlement scheme. Friends Colony, Shanti Niketan, Westend Maharani Bagh Panchashila, Anandlok, Niti Bagh, SDA MARKET TRANSACTIONS CLIENT PROPERTY AREA LOCATION TRANSACTION TYPE CLASSIFICATION (SQ. FT.) UNHCR Independent Building 15,000 Vasant Vihar Lease US Embassy Independent Building 10,125 Defence Colony Lease Australian High Commission Apartment 3,200 Westend Lease World Bank Apartment 3,200 Sunder Nagar Lease Australian High Commission Apartment 3,000 Vasant Vihar Lease Individual Apartment 2,500 Safdarjung .D.Area Sale Source: Colliers International India Research COLLIERS INTERNATIONAL | P. 7
  • 8. THE KNOWLEDGE REPORT | Q1 2011 | cOMMERcIAL | GURGAON COMMERCIAL SuPPLY IN PRIME AREAS • Over 8.3 million sq ft of grade ‘A’ office stock was available for lease this quarter. More than 60 per cent of this stock was in the form of NH8/Udhyog Vihar 33% IT/ITeS office space, located at Golf Course Road, Golf Course Road Extension, Sohna Manesar 15% Road, NH-8, Udhyog Vihar, Cyber City and Manesar. DLF Cyber City 7% • Gurgaon registered completion of a commercial Institutional Sectors / project ‘SAS Commercial Towers’ by SAS Golf Course Road/ Ext /Sohna Road Sushant Lok 7% Group in Sector 38.This project added over 33% MG Road 5% 0.3 million sq ft of commercial space to the total Grade ‘A’ office stock.GURGAON • No new commercial/ IT/ITeS office project 1Q2011 GRADE ‘A’ AND GRADE’B’ was launched this quarter in Gurgaon. RENTAL VALuESCITY OFFICE BAROMETER • Gurgaon grade ‘A’ office space observed a 140 correction of 2 to 5 percent in rental value 120 100 4Q2010 1Q2010 across all markets. Availability of ample 80 supply along with the competition from 60 INR per sq ft per month VACANCY nearby markets such as Noida and Greater 40 20 Noida attributed to this decline in rental ABSORPTION 0 values. However demand for grade ‘A’ office NH8/Udhyog Vihar Manesar MG Road Golf Course Road /Ext /Sohna Road Institutional Sectors / Sushant Lok Sohna Road (IT) DLF Cyber City (IT) NH8/Udhyog Vihar (IT) Manesar (IT) CONSTRuCTION space in Manesar continued to rise resulting in an appreciation of 5 to 7 percent in rental RENTAL VALuE values. Grade A Grade B • In a major decision HUDA has sanctioned INR 22.95 crore for the construction of a 17 km southern peripheral road connecting GRADE ‘A’ AVERAGE RENTAL VALuE Faridabad and Gurgaon to National Highway-8. PRIME OFFICE SPACE RENTAL TREND Construction for the same is expected to 120 commence by 3Q2011. 180 Forecast 160 100 140 80 120 100INR per Sq ft per Month INR per sq ft per month 60 80 60 40 40 20 20 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 0 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 MG Road Manesar (IT) DLF Cyber City (IT) Golf Course Road/Ext /Sohna Road Manesar Golf Course Road/ Institutional Sectors /Sushant Lok Ext /Sohna Road (IT) NH8/Udhyog Vihar (it) NH8/Udhyog Vihar MARKET TRANSACTIONS CLIENT BUILDING NAME AREA LOCATION TRANSACTION TYPE (SQ. FT.) Ekznobel DLF Cyber Terrace 55,000 Cyber City Lease Fluor Daniel India Pvt. Ltd DLF 10-C 50,000 Cyber City Lease Infosys Unitech Cyber Park 30,000 Sector 39 Lease Servigistics Unitech Cyber Park 15,000 Sector 39 Lease Avaya India Vipul Plaza 12,000 Sushant Lok Lease Lease Sunlife Unitech Cyber Park 30,000 Sector 39 Source: Colliers International India ResearchP. 8 | COLLIERS INTERNATIONAL
  • 9. THE KNOWLEDGE REPORT | Q1 2011 | REsIDENTIAL | GURGAON RESIDENTIAL 1Q2011 PREMIuM RESIDENTIAL AVERAGE CAPITAL VALuE • A number of projects were launched in newly 15000 developing sectors located at DLF Golf Course 14000 13000 Road extension, Dwarka Express way, Sohna 12000 11000 Road and NH8. The projects include “Ansal 10000 9000 8000 Heights” by Ansal API, “Today Callidora” by 7000 6000 Today Group, “Raaga” by Acme Group, “Verona 5000 4000 Hills” by ABW Group, “Land Mark Residency” INR per sq ft 3000 2000 by Land Mark Group, “Space Age Homes” 1000 0 by Ireo Skyon and “South Park” by Unitech DLF Phase I Sushant Lok NH - 8 Sohna Road & Ext Golf Course Road Group. Most of these projects were launched in the price band of INR 2,600 to 4,500 per square foot in areas such as Sohna Road, NH8 and Dwarka Express way and Pataudi Road. However, project located at Golf courseGURGAON road and extension are commanding between 5,500 and 8,000 psf for newly launched CAPITAL VALuE TRENDS project.CITY RESIDENTIAL BAROMETER 15000 14000 • Project/phases of the project completed this 13000 12000 4Q2010 1Q2011 quarter include a premium residential project 11000 10000 developed by DLF: “Summit”, located in DLF 9000 8000 RENTAL VALuE Phase V. 7000 6000 INR per sq ft 5000 CAPITAL VALuE 4000 • Capital values for premium ready-to-move- 3000 2000 in residential properties located along Golf 4Q2008 3Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 Course Road, Sohna Road, Sushant Lok and Golf Course Road Sohna Road & Ext NH8 registered an increase in the range of 5 Sushant Lok DLF Phase I to 8 per cent quarter-on-quarter. NH-8PROJECT LAuNCHED IN 1Q2011 • Rental values for premium residentialPROJECT NAME LOCATION properties were almost at the same level as in 1Q2011 PREMIuM RESIDENTIAL AVERAGEBrisk Lumbini Brisk Infrastructure the previous quarter in all locations. RENTAL VALuE & Developers • This quarter the Haryana Government askedUnitech South Park Unitech Group developers to mention the project license Golf Course Road 60Satya Clarion Satya Clarion Group number and other details in their publicity 50 material to curb malpractice e.g. where 40Raheja Shilas Raheja Group 30 INR per Sq ft Per Month developers launching their project without NH-8 20 Sohna Road & ExtThe Residency Land Mark Group 10 getting permission for the change in land use 0 or the final approval from town and country planning department. Sushant Lok DLF Phase I MARKET TRANSACTIONS CLIENT PROPERTY AREA LOCATION TRANSACTION TYPE CLASSIFICATION (SQ. FT.) Leighton Independent House 5,000 Sushant Lok - 1 Lease Ahuja Residency Apartment 3,600 Golf Course Road Lease Daikin Apartment 2,810 DLF Phase - 5 Lease Individual Apartment 2,500 Golf Course Road Lease General Motors Apartment 2,382 Sector - 30 Lease Source: Colliers International India Research COLLIERS INTERNATIONAL | P. 9
  • 10. THE KNOWLEDGE REPORT | Q1 2011 | cOMMERcIAL | NOIDA COMMERCIAL SuPPLY IN PRIME AREAS • Approximately 5.5 million sq ft of grade ‘A’ and grade ‘B’ office space was available for lease/sale this quarter. About 75 percent of Institutional Sectors (Sec.16A, 62, 125-142) 89% this office space was IT/ITeS office space primarily located at Institutional Sectors such as 16A, 62 and at sector 125-142 alongside the NOIDA Express highway. Industrial Sectors (Industrial Usage bt IT also allowed) (Sec. 1-9, 57-60, 63-65) 10% • This quarter NOIDA registered launch of Commercial Sectors (sec 18) 1% two new commercial projects La Premiere by Logix Group in sector 124 and Oxygen Boulevard by 3C Developers in sector 98 located at NOIDA Greater NOIDA expressway. Both these project are expected to completeNOIDA by year 2013 and will add approximately 3 1Q2011 GRADE ‘A’ AND GRADE’B’ million sq ft of grade ‘A’ office space in the RENTAL VALuES city’s total stock.CITY OFFICE BAROMETER 120 • Rental values for Grade ‘A’ office space 100 4Q2010 1Q2011 remained stable in almost all the micro 80 markets in NOIDA this quarter. However, 60 INR Per SqFt Per Month VACANCY rental values for Grade ‘B’ property witnessed 40 a minor decrease in the range on 1 to 3 ABSORPTION 20 percent Q-o-Q. 0 Industrial Sector Sector Institutional Sectors (Non IT) Institutional Sector (IT) Commercial CONSTRuCTION • This quarter the Noida Authority took the RENTAL VALuE long awaited decision to build additional Grade A Grade B lanes at Kalindi Kunj overbridge which will improve connectivity between South Delhi and Noida. This will give a further boost to the sectors located at Expressway. The Bridge is GRADE ‘A’ AVERAGE RENTAL VALuE expected to cost around INR 300 crore and PRIME OFFICE SPACE RENTAL TREND will be completed in 18 months 80 140 Forecast 70 120 60 100 INR Per SqFt Per Month 50 80INR per Sq ft per Month 40 60 30 40 20 20 10 0 2Q2008 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 0 2Q2008 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 Institutional Sectors (Non IT) Industrial Sector Commercial Sectors Institutional Sectors (IT) MARKET TRANSACTIONS CLIENT BUILDING NAME AREA LOCATION TRANSACTION TYPE (SQ. FT.) Mother Dairy Somdatt Towers 3,200 Sector 18 Lease Tata Chemicals Somdatt Towers 3,200 Sector 18 Lease Barclays Bank Unitech Infospace 1,40,000 Sector 62 Lease Samsung India Electronics Pvt. Ltd. Logix Cyber Park 28,000 Sector 62 Lease Source: Colliers International India ResearchP. 10 | COLLIERS INTERNATIONAL
  • 11. THE KNOWLEDGE REPORT | Q1 2011 | REsIDENTIAL | NOIDA RESIDENTIAL 1Q2011 PREMIuM RESIDENTIAL AVERAGE CAPITAL VALuE • This quarter relatively less number of project were launched; “Heart Beat City” by Amrapali, 8000 7500 “Orchards” by Jaypee Group, “Residences” by 7000 6500 6000 Unitech “Krescent Homes” by Jaypee Group, 5500 5000 “North Eye” by Supertech Developers and 4500 4000 “Vanalika” by Sun World. 3500 3000 2500 2000 INR Per SqFt 1500 • All of these projects were launched in the 1000 500 0 price range of INR 3,400 to 4,000 per sq ft. Sector 44 Sector 50 Sector 61, 62., 63 Sector 92/93 Sector 28, 29, 30 Premium project North Eye, introduced as the tallest residential project in NCR region was launched at the rate of INR 5,500 per sq ft. • Capital values for ready to move in premiumNOIDA properties registered an increase in the range of 2 to 3 percent quarter on quarter CAPITAL VALuE TRENDS due to limited supply in the luxury segment.CITY OFFICE BAROMETER Properties in middle income range remained 7500 7000 stable on account of large availability and 6500 4Q2010 1Q2011 continuous addition of new supply in the 6000 market. 5500 5000 RENTAL VALuE 4500 INR Per Sq Ft • Premium residential property rental values 4000 CAPITAL VALuE 3500 witnessed an increase in the range of 3 to 5 3000 percent quarter on quarter; this is primarily 4Q2009 1Q2010 4Q2010 1Q2011 3Q2009 2Q2010 3Q2010 attributed to the high demand for premium Sector 92/93 Sector 50 properties due revived increase commercial Sector 28,29,30 Sector 61,62,63 sector and limited space availability. Sector 44PROJECT LAuNCHED IN 1Q2011 • Noida Authority has approved a proposalPROJECT NAME LOCATION to build 75 meter wide and 14 km long 1Q2011 PREMIuM RESIDENTIAL AVERAGE expressway from Gautam Buddha Nagar to RENTAL VALuEHeart Beat City Sector 107 Faridabad. This would improve the connectivityOrchards Sector 131 between areas like Noida Sector 150-152, Pari Sector 44Residences Sector 117 Chowk, Yamuna Bank, Mehatpur, Lalpur and 25 help commuters to avoid congested Badarpur 20Krescent Homes Sector 134 15 bypass.North Eye Sector 74 INR per Sq ft Per Month Sector 28,29,30 10 Sector 50 5Vanalika Sector 107 0 Sector 92/93 Sector 61,62,63 MARKET TRANSACTIONS CLIENT PROPERTY AREA LOCATION TRANSACTION TYPE CLASSIFICATION (SQ. FT.) Individual Apartment 2,400 Sector 93A Sale Individual Apartment 1,500 Sector 93A Lease Individual Apartment 1,375 Sector 62 Lease Individual Apartment 1,200 Sector 51 Lease Source: Colliers International India Research COLLIERS INTERNATIONAL | P. 11
  • 12. THE KNOWLEDGE REPORT | Q1 2011 | cOMMERcIAL | chENNAI COMMERCIAL SuPPLY IN PRIME AREAS • This quarter approximately 11 million sq ft of grade ‘A’ office stock was available for fit-out in Chennai. Approximately 90 per cent of this stock was in the form of IT/ITeS office space primarily located at OMR. Velachery 5% Guindy (SBD) 1% • There was no major completion of new office CBD 1% developments in 1Q2011. Approximately 0.9 million sq ft of office space is expected to OMR (IT Corridor) be added to the total grade ‘A’ office stock in 69% Ambattur 24% 2Q2011 in Chennai. • Rental values in CBD increased in the range of 4 to 6 per cent quarter-on-quarter; thisCHENNAI was primarily due to limited supply of non- 1Q2011 GRADE ‘A’ IT AND NON IT IT office space and increased leasing activity RENTAL VALuES in this area. However, increase, conversion ofCITY OFFICE BAROMETER IT buildings into non-IT buildings will exert 80 pressure on the rental values of non-IT office 70 4Q2010 1Q2011 space in the medium to long term. 60 50 INR per sq ft per month 40 VACANCY • Rental values for IT/ITeS office space remained 30 stable in almost all of the micro markets, 20 ABSORPTION due to large stock availability. Guindy, micro 10 CONSTRuCTION market emerged as a preferred destination for 0 GST road Ambattur OMR CBD Guindy (SBD) both IT/ITeS and non IT office space due to its RENTAL VALuE proximity to CBD, Porur and the airport. IT NON IT • Continuing the trends from the previous quarter, there was a strong demand for large floor plates in Special Economic Zones GRADE ‘A’ AVERAGE RENTAL VALuE (SEZ). A number of large deals took place in PRIME OFFICE SPACE RENTAL TREND Ramanujam SEZ and DLF IT SEZ during the 60 quarter. 90 Forecast 50 80 • The state government has decided to expand 70 40 the metro network by introducing threeINR per Sq ft per Month 60 INR per sq ft per month 30 new routes; Moolakadai-Tirumangalam, 50 20 Moolakadai-Tiruvanmiyur and Luz- 40 10 Poonamallee via Lyyappanthanagal. This will 30 20 further boost connectivity along the areas like 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 Ambattur, Perambur, T Nagar and Vadapalani 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 Ambattur GST road CBD Guindy (SBD) etc. OMR (IT Corridor) MARKET TRANSACTIONS CLIENT BUILDING NAME AREA LOCATION TRANSACTION TYPE (SQ. FT.) HP Ramanujan IT SEZ 1,50,000 Taramani Lease Virtusa DLF SEZ 50,000 Manapakkam Lease Infosys Ramanujan IT SEZ 50,000 Taramani Lease BGR Energy Triton Square 36,000 Guindy Lease Prodapt Prince Infocity 2 35,000 Kandanchavadi(IT Corridor) Sale Scientific Publishing Services Ramanujan IT SEZ 25,000 Taramani Lease Source: Colliers International India ResearchP. 12 | COLLIERS INTERNATIONAL
  • 13. THE KNOWLEDGE REPORT | Q1 2011 | REsIDENTIAL | chENNAI RESIDENTIAL 1Q2011 PREMIuM RESIDENTIAL AVERAGE CAPITAL VALuE • A number of premium residential projects/ phases of the projects were completed 20000 18000 this quarter. “Tej Abirami”, developed by 16000 14000 Abirami Builders; “Venkataeswara” by 12000 Venkataeswara Builders, located at Poes 10000 8000 Garden; “Zircon Paradise” by Zircon Builders 6000 INR per sq ft at Thiruvanmiyur; “Terracotta” and “Fountain 4000 2000 Square” by Vijayshanthi Builders at Adyar 0 Alwarpet / R A Puram Anna Nagar Adyar Beasant Nagar T Nagar Velachery Sholinganallur Siruseri/ Kazipattur Boat Club Nungambakkam and Medavakkam, respectively; “Metropolis” by Akshaya Homes at GST Road; “Amara” by Arihant Builders at Poonamallee High Road; and “Kings Court” by Golden Homes at Anna Nagar. Most of these projects contribute only 4 to 10 units each to the premium residentialCHENNAI supply. CAPITAL VALuE TRENDS • Projects launched this quarter include “TheCITY RESIDENTIAL BAROMETER Origin” by Adrit Urban, “Atrium” by Urban 21000 Tree Infrastructure, “Mayfair” by SSPDL 19000 17000 4Q2010 3Q2011 and “Verterra” by Primex Infrastructure Pvt. 15000 13000 Ltd. Most of these projects were launched 11000 RENTAL VALuE in suburban areas, continuing the trend for 9000 7000 larger scale developments with smaller sized INR per sq ft 5000 CAPITAL VALuE units. 3000 1000 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 • Rental values for premium residential market Boat Club Nungambakkam T Nagar increased in the range of 4 to 10 per cent Adyar Beasant Nagar Sholinganallur Alwarpet / R A Puram Velachery quarter-on-quarter, due to increased demand Siruseri/ Kazipattur Anna Nagar on account of revived commercial sector inPROJECT LAuNCHED IN 1Q2011 the city; limited supply addition in the primePROJECT NAME LOCATION residential area also contributed to this rise. 1Q2011 PREMIuM RESIDENTIAL AVERAGEThe Origin Shastri Nagar, RENTAL VALuE • Following the previous quarter trends, capital Adyar values remained stable and no significantAtrium Perungudi, OMR increase was witnessed in any of the micro 65 Boat ClubMayfair Thalambur, OMR markets. Siruseri/ Kazipattur 55 Nungambakkam 45Verterra Mugalivakkam, Sholinganallur 35 INR per Sq ft Per Month 25 Anna Nagar Porur 15 5 -5 Adyar Velachery Alwarpet / R A Puram Beasant Nagar T Nagar MARKET TRANSACTIONS CLIENT PROPERTY AREA LOCATION TRANSACTION TYPE CLASSIFICATION (SQ. FT.) American International School Beach house 5,500 Neelankarai Lease British Deputy High Commission Apartment 3,500 Kotturpuram Lease Chennai Metrol Rail Apartment 2,400 R.A. Puram Lease Elof Hansson India Pvt. Ltd. Apartment 2,400 Mylapore Lease Hyundai India Apartment 1,800 Besant Nagar Lease Source: Colliers International India Research COLLIERS INTERNATIONAL | P. 13
  • 14. THE KNOWLEDGE REPORT | Q1 2011 | cOMMERcIAL | bENGALURU COMMERCIAL SuPPLY IN PRIME AREAS • More than 4.5 million sq ft of grade ‘A’ office space was available for lease/sales in 1Q2011. Nearly 80 per cent of this stock was IT/ITeS Bannerghatta Road 12% Outer Ring Road 33% office space, located at ORR, EPIP Zone and Whitefield. Electronic City 10% • Projects launched this quarter include CBD 10% “Brigade Rubix”, “Prestige Exora –II&III”, and “Alyssa”, which will contribute approximately 2 million sq ft to the city’s office space by the Hosur Rd 10% EPIP Zone/ Whitefield 25% end of 2012. • New supply of approximately 75,000 sq ft was added to Bengaluru grade ‘A’ officeBENGALURU space in 1Q2011. Projects contributing to 1Q2011 GRADE ‘A’ AND GRADE’B’ this supply were Umiya Emporium located in RENTAL VALuES Koramangala, and a stand-alone building atCITY OFFICE BAROMETER Bannerghatta Road. The next quarter, shall 90 also witness, small grade ‘A’ supply of 115,000 80 70 1Q2010 1Q2011 sq ft. 60 50 INR Per SqFt Per Month VACANCY • Following the previous quarter’s trend, the 40 30 market continued to see an increase in 20 ABSORPTION leasing activities in the market. This demand 10 0 was primarily attributed to IT/ITeS and CBD Hosur Road EPIP Zone/ Whitefield Electronic City(IT) Bannerghatta Road Outer Ring Road CONSTRuCTION financial sectors in PBD areas. This resulted RENTAL VALuE in an increase in Rental values for grade ‘A’ Grade A Grade B office space in the range of 4 to 8 per cent in Electronic City, Outer Ring Road, EPIP Zone and White Field area. Most of the other micro markets saw no change in rental values. GRADE ‘A’ AVERAGE RENTAL VALuE PRIME OFFICE SPACE RENTAL TREND • To boost growth of the IT/ITeS sector in 50 Karnataka, the state government approved its 100 45 Forecast new IT and Electronic Hardware policy. The 90 80 40 35 state also plans to develop four electronic 70 hardware parks in the clusters of Bangalore – 60INR per Sq ft per Month 30 50 INR Per SqFt Per Month 25 Tumkur, Shimoga – Hassan, Hubli – Dharwad 40 30 20 and Mysore – Nanjangud. 20 15 10 10 0 5 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 CBD Bannerghatta Road Hosur Road Electronic City EPIP Zone / Whitefield Outer Ring Road MARKET TRANSACTIONS CLIENT BUILDING NAME AREA LOCATION TRANSACTION TYPE (SQ. FT.) Ericssion World Technology Centre 1,00,000 Outer Ring Road Lease Renesas Electronics Stand Alone Building A & C 82,000 Koramangala Lease Mphasis Global Tech Village 86,000 Mysore Road Lease Northern Operating System Global Tech Village 80,000 Mysore Road Lease Amazon Software India Pvt Ltd World Trade Centre 80,000 Rajajinagar Lease Ameoba HM Vibha Tower 33,000 Koramangala Lease Source: Colliers International India ResearchP. 14 | COLLIERS INTERNATIONAL
  • 15. THE KNOWLEDGE REPORT | Q1 2011 | REsIDENTIAL | bENGALURU RESIDENTIAL 1Q2011 PREMIuM RESIDENTIAL AVERAGE CAPITAL VALuE • A number of projects/phases of the projects were completed this quarter including 15000 14000 13000 “Beverly Park” by Skyline, “Beverly Hills” and 12000 11000 “Jardin” by Chartered Housing, “Midway City” 10000 9000 , “Manhattans” by Concorde Group, “Antila 8000 7000 6000 III” by Confident Builders, “Elixir” by Daddy’s 5000 4000 Builders, “Serene Drive” by Definer, “Klassic INR per Sq Ft 3000 2000 Bench Mark” by Klassic Enterprises, “Temple 1000 0 Bells” by Renaissance Holding and “Sanctity” Whitefield (Appts) Jayanagar Central Cooke Town Palace Orchard Bannerghatta Road Koramangala Indiranagar Airport Road Yelahanka by Salarpuria. • Projects launched this quarter include “Shri Ram Shuruthi” by Shri Ram Properties, “Hill Crest” by Hiranandani Upscale, “Mittal Pals”BENGALURU by Mittal Group, “Keerthi Gardenia” by Keerthi Estates, “Pride Spring Fields” by ride Group, CAPITAL VALuE TRENDS “Purva Midtown” by Purva Projects and “ TheCITY RESIDENTIAL BAROMETER Pavilion” by SJR Builders. 14500 12500 10500 4Q2010 1Q2011 • The capital values for premium residential 8500 properties increased in the range of 8 to 10 6500 RENTAL VALuE percent quarter on quarter in almost all the 4500 INR per Sq Ft micro markets. 2500 CAPITAL VALuE 500 1Q2008 2Q2008 3Q2008 4Q2009 2Q2010 1Q2010 4Q2008 1Q2009 2Q2009 3Q2009 3Q2010 4Q2010 1Q2011 • Similarly, rental value for prime residential Central Cooke Town Jayanagar properties increased in the range of 8 to 10 Palace Orchard Airport Road Indiranagar percent in micro markets such as Central, Bannerghatta Road Koramangala Whitefield (Appts) Yelahanka Jayanagar, Palace Orchard, and Whitefield. Micro markets such as Airport Road,PROJECT LAuNCHED IN 1Q2011 Indiranagar, Bannerghatta Road, YelahankaPROJECT NAME LOCATION and Koramangala, witnessed an increase in the 1Q2011 PREMIuM RESIDENTIAL AVERAGEShri Ram Shruthi Jalahalli East range of 2 to 5 percent quarter on quarter. RENTAL VALuEHill Crest Banneghatta Road • In 1Q2011, Tumkur Road Expressway became CentralMittal Palms Jakkur operational. This expressway will connect 60 Cooke Town Yelahanka Yeshwantpur to Industrial areas like Pennya, 50Keethi Gardenia Varthur Road 40 INR per Sq Ft per Month Bommasandra, Neelamangala and is extended 30Pride Spring Fileds Kanakapura Road 20 till Tumkur. This expressway is expected to Whitefield Jayanagar (Appts) 10Purva Midtown Old Madras Road ease the traffic congestion along the Tumkur 0The Pavilion ORR Road. Koramangala Palace Orchard Bannerghatta Road Airport Road Indiranagar MARKET TRANSACTIONS PROPERTY AREA CLIENT CLASSIFICATION (SQ. FT.) LOCATION TRANSACTION TYPE Individual Apartement 2,605 Hosakerehalli Sale H&M Bungalow 2,000 Sanjaynagar Lease Individual Apartment 1,516 Sanjaynagar Sale GM Apartment 1,300 Whitefield Lease Source: Colliers International India Research COLLIERS INTERNATIONAL | P. 15
  • 16. THE KNOWLEDGE REPORT | Q1 2011 | cOMMERcIAL | KOLKATA COMMERCIAL NEW SuPPLY IN PRIME AREAS • During this quarter 0.25 million sq ft grade ‘A’ office space was added to the city’s total East Kolkata - 5% inventory. The project contributed to this new supply was Synthesis Business Park developed by Sharachi Developers located in New Town. • Project launched this quarter was “Merlin Matrix” in Sector 5 by Merlin Group. The gross leasable area of the project will be PBD (New Town,Rajarhat) approximately 65,000 sq ft. 95% • A number of large floor plate lease concluded in 1Q2011 Kolkata in New Town and Salt Lake.KOLKATA The major deal of the quarter was the lease of 1Q2011 GRADE ‘A’ AND GRADE’B’ approx 350,000 sq ft in DLF IT Park II taken RENTAL VALuES up by Ericsson.CITY OFFICE BAROMETER 140 • An appreciation in the range of 2 to 7 percent 120 4Q2010 1Q2011 was observed in CBD areas such as Park St, 100 Camac St, AJC Bose Road and East Kolkata 80 INR per sq ft per month VACANCY primarily due to limited supply and little scope 60 for further development in these areas. Rental 40 ABSORPTION values in PBD and SBD remained stable on 20 account of large stock availability. 0 CONSTRuCTION New Town, Rajarhat (IT) New Town, Rajarhat Sector 5 Ballygunge Circular Rd East Kolkata Sector 5 (IT) CBD RENTAL VALuE Grade A Grade B GRADE ‘A’ AVERAGE RENTAL VALuE PRIME OFFICE SPACE RENTAL TREND 100 160 90 Forecast 140 INR per sq ft per month 80 120 70 100 60INR per Sq ft per Month 80 50 40 60 30 40 20 20 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 1Q2011 4Q2010 10 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 Ballygunge PBD(New T East CBD (Park St, Circular Rd own ,Rajarhat) Kolkata Camac St,AJC Sector- 5 Bose Rd) MARKET TRANSACTIONS CLIENT BUILDING NAME AREA LOCATION TRANSACTION TYPE (SQ. FT.) Ericsson DLF IT Park 2 3,50,000 New Town Lease Mott Mac Donald RMZ Ambuja 22,000 New Town Lease Lahmeyer International Infinity Benchmark 12,500 Salt Lake Lease Binani Infrastructure Axis Mall 12,000 New Town Lease Hyundai Infinity Benchmark 7,500 Salt Lake Lease Tulip Telecom NA 6,000 CBD Lease Source: Colliers International India ResearchP. 16 | COLLIERS INTERNATIONAL
  • 17. THE KNOWLEDGE REPORT | Q1 2011 | REsIDENTIAL | KOLKATA RESIDENTIAL 1Q2011 PREMIuM RESIDENTIAL AVERAGE CAPITAL VALuE • Project that were ready for possession this 12000 quarter were “Unitech Horizon” by Unitech 10000 Group and “Meena Garden” by GM Group in Rajarhat “4Sight Manor” by Ganguly Group 8000 in Garia, “Jubilee Residency” by Goldwyn 6000 Advisory in Lake Town, and “Trideb Garden” 4000 by Trideb Construction in Keshtopur. INR per sq ft 2000 0 • A number of residential projects were launched Bhawanipur PA Shah Road Tollygunge Alipore Behela Loudon Street Ballygunge Salt Lake EM Bypass VIP Road New Town Rajarhat in the price band of INR 1,600 to 2,400 per sq ft in Kolkata this quarter including “Forum Pravesh” by Forum Projects, “Silver Oak” by Silver Oak Estate, “Sugam Swyam” by Sugam Properties Pvt. Ltd, “Aryan Towers” by NaturalKOLKATA Merchants Pvt. Ltd and “Purti Star” by Purti Group. CAPITAL VALuE TRENDSCITY RESIDENTIAL BAROMETER • Capital values across all the micro markets 14000 in Kolkata registered increase in the range 12000 4Q2010 1Q2011 of 6 to 9 percent Q-o-Q. This increase was 10000 8000 primarily attributed to the rising demand for RENTAL VALuE housing across all income groups. 6000 4000 INR per sq ft CAPITAL VALuE 2000 • Rental values in almost all the micro markets 1000 witnessed an increase in the range of 2-5 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q201 4Q2009 1Q2010 2Q2010 3Q201 3Q2010 4Q2010 1Q2011 percent q-o-q barring areas like Tollyguange Bhawanipur PA Shah Road Tollygunge and Behala where the rental value remained Behela EM Bypass Loudon Street VIP Road Ballygunge New Town - Rajarhat stable. Alipore Salt LakePROJECT LAuNCHED IN 1Q2011 3Q2010 • This quarter the state government has decidedPROJECT NAME LOCATION to allocate 30 plots under group housing or 1Q2011 PREMIuM RESIDENTIAL AVERAGEForum Pravesh Belur cooperative housing scheme. These plots will RENTAL VALuE be allocated through a lottery system amongSilver oak Rajarhat LIG and MIG applicants. Allocation of plots BhawanipurSugam Swayam Konnagar in Salt Lake was suspended because of a 35 New Town Rarhat PA Shah RoadAryan towers Sodepur litigation in Supreme Court challenging quota 30 25 system in distributing them. 15Purti Star Rajarahat Main Road VIP Road Tollygunge INR per Sq ft Per Month 10 5 0 EM Bypass Alipore Salt Lake Behela Ballygunge Loudon Street MARKET TRANSACTIONS CLIENT PROPERTY AREA LOCATION TRANSACTION TYPE CLASSIFICATION (SQ. FT.) Individual Apartment 1,339 Mahestala Sale Individual Apartment 1,335 TATA Eden Court, New Town Sale Individual Apartment 1,275 Kalikapur Sale Individual Apartment 1,125 Chinar Park, Rajarhat Sale Individual Apartment 1,050 Garia Sale Individual Apartment 875 Dum Dum Sale Source: Colliers International India Research COLLIERS INTERNATIONAL | P. 17
  • 18. THE KNOWLEDGE REPORT | Q1 2011 | cOMMERcIAL | PUNE COMMERCIAL SuPPLY IN PRIME AREAS • Nearly 10 million sq ft of Grade ‘A’ IT/ITeS office stock was available for lease/sale, Hinjewadi 13% Kharadi 5% primarily in Hinjewadi, Hadpsar, Fursungi, Hadapsar/Fursungi 8% Kharadi and Airport Road. Bund Garden 1% Airport road 10% • No supply was added to the city’s Grade ‘A’ office stock this quarter. Two new projects, Aundh 1% Senapati Bapat Rd 1% “Pride Infotech Park” and “Pride House” by Bavdhan 2% Pride Housing and Construction Pvt. Ltd. are Kalyani Nagar 5% expected to be ready for fit outs by next quarter, Nagar Road 55% resulting in the addition of approximately 0.3 million sq ft of Grade A office space to the city’s total commercial inventory.PUNE • This quarter, Kumar Builders launched a 1Q2011 GRADE ‘A’ IT AND NON IT special economic zone, “Cerebrum”, in RENTAL VALuES Hinjewadi. The project is expected to beCITY OFFICE BAROMETER completed in two to three years and will 80 add approximately 6 million sq ft of office 70 4Q2010 1Q2011 space. Wadhwa Developers also launched a 60 50 commercial project in Hinjewadi admeasuring INR Per SqFt Per Month 40 VACANCY approximately 0.3 million sq ft, which is 30 expected to be completed by the end of this 20 ABSORPTION 10 year. 0 Bund Garden Baner Aundh Bavdhan Nagar Road Hinjewadi Kalyani Nagar Airport road/ pune station Hadapsar/Fursungi Senapati Bapat Road Kharadi CONSTRuCTION • Rental values in almost all the micro markets RENTAL VALuE remained stable during the quarter. Increased IT Non IT absorption from the previous two quarters was unable to push rental values upward due to the large stock availability. GRADE ‘A’ AVERAGE RENTAL VALuE • To further improve the road connectivity PRIME OFFICE SPACE RENTAL TREND between Pune and Mumbai, the state’s public 70 works department (PWD) has started to build 130 60 Forecast an eight-lane highway along the existing 120 110 Sion-Panvel link connecting BARC junction 100 50 90 at Deonar in northeast Mumbai to the PuneINR per Sq ft per Month 80 40 INR Per SqFt Per Month expressway at Kalamboli. 70 60 30 50 40 20 30 20 10 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 Bavdhan Aundh Airport road/pune station Bund Garden Nagar Road Baner Kalyani Nagar Senapati Bapat Rd Khardi Hinjewadi / Hadapsar/Fursungi MARKET TRANSACTIONS CLIENT BUILDING NAME AREA LOCATION TRANSACTION TYPE (SQ. FT.) Tech Mahindra Manikchand Ikon 68,000 Bund Garden Road Lease Yardi Software India Pvt. Ltd. Pride Senate ii 45,000 S.B. Road Lease Johnson Controls Business Plaza 25,000 Koregaon Park Lease Cargotech Commerce Zone 22,000 Airport Road Lease Dupont Business Plaza 12,000 Koregaon Park Lease Ognam Technologies Nyati Millenium 4,000 Viman Nagar Lease Source: Colliers International India ResearchP. 18 | COLLIERS INTERNATIONAL
  • 19. THE KNOWLEDGE REPORT | Q1 2011 | REsIDENTIAL | sUbMARKETsCOMMERCIAL SuBMARKETS RESIDENTIAL SuBMARKETSMumbai MumbaiThe major business locations in Mumbai are the CBD (Nariman Point, The high-end residential real estate markets in Mumbai include MalabarFort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Hill, Altamount Road, Carmichael Road, Napean Sea Road, Breach Candy,Bandra Kurla Complex (BKC) and Andheri Kurla stretch. Powai, Malad Colaba, Cuffe Parade, Prabhadevi, Worli, Bandra, Khar, Santacruz, Juhuand Vashi are the preferred IT/ITES destinations, while Airoli at Navi and Powai.Mumbai and Lal Bahadur Shastri Marg are emerging as new office andIT/ITES submarkets. Delhi The prime residential areas in Delhi are in the South region andDelhi comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan andThe commercial areas in New Delhi metropolitan area can be broadly Central Delhi locations. These areas enjoy proximity to embassies, theclassified into the CBD (Connaught Place), SBD Nehru Place, Bhikaji airport and central commercial areas - Connaught Place.Cama Place, Netaji Subhash Place, Jasola and Saket . GurgaonGurgaon The prime residential locations of Gurgaon include Golf Course Road,The prime business locations in Gurgaon are MG Road, Golf Course DLF Phase I, Sushant Lok and Sohna Road. The Delhi- Jaipur HighwayRoad, Cyber City and Udhyog Vihar. Manesar on the outskirts of Gurgaon (NH-8) is also emerging as a preferred residential location owing to itsis also emerging as the city’s new office destination. proximity to the national capital.Noida NoidaNoida market is comprised of sectors broadly classified as institutional, Noida premium residential market is comprised of sectors 44, 50, 92,industrial and commercial sectors. Institutional sectors include sec 16A, 61,62,63 , 28, 29, 30 and Taj Express Highway.62 and 125-142, industrial sectors include sec 1-9, 57-60 and 63- 65while sector 18 is the most developed commercial sector. Chennai The prime residential areas in Chennai include Thiruvanmiyur, ValmikiChennai Nagar and Besant Nagar, R.A Puram, Mylapore and Adyar in SouthPrime office properties in Chennai are located in four principal sub- Chennai, Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet,markets: the CBD, the IT Corridor, the SBD and the PBD. The SBD T. Nagar in Central Chennai; and Anna Nagar, Kilpauk in North Westcomprises Guindy, Manapakkam, Velachery and other areas. The PBD Chennai.primarily includes Ambattur and GST Road, while the IT Corridor is theOld Mahaballipuram Road (OMR) in south Chennai. Bengaluru The residential market of Bengaluru comprises both apartments andBengaluru independent residences. Currently, high-end residential developmentsPrime office properties in Bangaluru can be divided into three principal are mainly concentrated along the CBD, and Eastern and South precinctssub-market— CBD, the SBD consisting of Banerghatta Road & Outer of the city. Recently, Northern Bengaluru has also witnessed a spree ofRing Road (ORR) and PBD including Hosur Road, EPIP Zone, Electronic realty activity facilitated by the new International Airport at Devanhalli.City and Whilefield. KolkataPune The prime residential areas in Kolkata include PA Shah Road, TollygungeThe prime office sub-markets of Pune include Deccan Gymkhana, and Bhawanipur in South Kolkata, Alipore and Behala in South-westSenapati Bapat Road & Camp (SBD), while the PBD includes Aundh, Kolkata, Loudon Street and Ballygunge in Central Kolkata; and Salt Lake,Bund Garden, Airport Road and Kalyani Nagar, among other locations. EM Bypass and VIP Road in North Kolkata.The eastern corridor, along with Nagar Road and Kharadi, have emergedas a preferred location for financial and IT/ITES companies.KolkataThe major business locations in Kolkata are CBD (Park Street, Camac CITY BAROMETERStreet, AJC Bose Rd, Chowranghee Rd), Ballygunge circular Rd, EastKolkata and PBD (New Town & Rajarhat). The area around Park Street, Increasing as compared to previous quarterCamac Street and AJC Bose road houses number of high-risescommercial buildings such as Chatterjee International Centre, Tata Decreasing as compared to previous quarterCentre, Everest House and Industry House among others. Remained stable from previous quarter COLLIERS INTERNATIONAL | P. 19
  • 20. THE KNOWLEDGE REPORT | Q1 2011Colliers International (India) provides property services to property Investors and Occupiers. Wedeliver customised service solutions utilising local and global knowledge in partnership with our 480 OFFICES IN 61 COUNTRIES ON 6 CONTINENTSclients via our property Investment and Occupier service lines. These service lines include - OfficeServices, Facility Management, Land Sales, Project Management, Residential Services, Retail USA 135Services, Investment Services and Valuation & Advisory Services. Canada 39 Asia 26For more information please visit www.colliers.com/india ANZ 168 Latin America 17 EMEA 95Mumbai : George Mckay, South Asia Director US $154 billion in annual transaction volume George.mckay@colliers.com 2.4 billion square feet under management Poonam Mahtani, Office Director Poonam.mahtani@colliers.com 15,052 Professionals 31/A, 3rd floor, film Center, 68, Tardeo Road, Mumbai - 400 034 US$ 1.9 billion in annual revenue Tel : 91 22 4050 4500 fax: 91 22 2351 4272New Delhi : Prit Paul, Office Director AUTHORS Prit.paul@colliers.com Amit Oberoi 204/205, 2nd floor, Kanchenjunga Building, 18, Barakhamba Road, National Director, Valuation & Advisory; Research New Delhi - 110 001. Tel : 91 11 4360 7500 - 23 fax: 91 11 2335 6624 Tel: 91 11 4360 7500 Email: Amit.oberoi@colliers.comBengaluru : Goutam Chakraborthy, Office Director Surabhi Arora MRICS Goutam.chakraborthy@colliers.com Senior Manager, Research Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru - 560 042. Tel: 91 11 4360 7542 Tel : 91 80 4079 5500 fax: 91 80 4112 3131 Email: Surabhi.Arora@colliers.comPune : Suresh Castellino, Office Director Abhinna Rastogi Analyst, Research Suresh.castellino@colliers.com Tel: 91 11 4360 7541 Vatika Business Center, Level-5,C Wing, Panchsheel Tech Park-1, Yerwada Email: Abhinna.rastogi@colliers.com Pune- 411 006. Tel : 91 20 4011 1356 For general queries and feedback :Gurgaon : Saccketh Chawla, Office Director India.Research@colliers.com Saccketh.chawla@colliers.com For Press enquiries: G3-5th Floor, NewBridge Business Centers, TechnoPolis, DLF Golf Course Main Road, Poonam Mahtani Sector 54, Gurgaon - 122002. Tel : 91 124 437 5807 fax : 91 124 437 5806 National Director, Knowledge System Tel: 91 22 4050 4500Chennai : Kaushik Reddy, Office Director Email: India.marketing@colliers.com Kaushik,reddy@colliers.com Heavitree Complex, Unit 1C, 1st floor, 23,Spurtank Road, Chetpet, This report and other research materials may be found on Chennai - 600 031. Tel : 91 44 2836 1064 fax: 91 44 2836 1377 our website at www.colliers.com/India. Questions related to information herein should be directed to the Research Department at the number indicated above. This documentKolkata : Joe Verghese, Managing Director has been prepared by Colliers International for advertising Joe.verghese@colliers.com Accelerating succe and general information only. Colliers International makes no guarantees, representations or warranties of any kind, Infinity Business Centre, Infinity Benchmark, Room No 13, Level 18, Plot G - 1, Block EP & GP, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Salt Lake Sector V, Kolkata - 700 091. West Bengal, India Any interested party should undertake their own inquiries Tel : +91 33 2357 6501 Extn : 206 , Fax +91 33 2357 6502 as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.Recent Reports : © Copyright 2011 - 2012 All Rights Reserved.- Asia Pac Office Market Overview - Q1-2011- Asia Pac Real Estate Investment Market Bulletin - Second Half 2010- Global Office Market Overview - Second Half 2010- Asia Pac Industrial Market : May-2010 This book is printed on 100% Recyclable paper Accelerating success. Accelerating success.