India Residential Property Market Overview  May 2014
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India Residential Property Market Overview May 2014

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HIGHLIGHTS ...

HIGHLIGHTS

• Restricted sales transactions were observed in major cities like Mumbai, Delhi, Gurgaon and NOIDA during 1Q 2014. However, an increase in the number of enquiries for residential properties has been seen across the markets.
• Chennai, Bengaluru and Pune markets remained active and witnessed ample new project launches.
• Capital values remain stable in most cities. However select micro markets with inherent demand witnessed increases in the range of 2 - 5% Q-o-Q.
• With the new Government in place and business confidence gaining momentum, we anticipate an increase in residential sales in the coming quarter.

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  • 1. Residential Property Market Overview May 2014
  • 2. research & forecast Report SYDNEY CENTRAL BUSINESS DISTRICT 2 Research & Forecast Report | May 2014 | Residential | Colliers International www.colliers.com ECONOMIC BAROMETER Apr-13 Apr-14 Repo rate 7.50% 8.00% Reverse Repo rate 6.50% 7.00% CRR 4.00% 4.00% Inflation 4.77% 5.20% Home loan rate 9.95% 10.15% Return on Alternative Investments Apr-13 Apr-14 YoY % Change Gold 27,135 29,773 9.72% Silver 45,483 41,892 -7.90% Fixed Deposit 8.75% 9.00% 2.86% Equity 19,504 22,418 14.94% Realty Index 1,901 1,397 -26.54% Repo Rate Cash Reserve Ratio Wholesale Price Index ECONOMIC INDICATORS InPercentage Macro Economic Overview India’s economic growth decelerated to 4.7% in 4Q 2013, from 4.8% in the previous• quarter. On a positive note, the BCI rose to 54.9 during 4Q 2013, from 45.7 in the previous quarter showing an increase in business confidence levels. The International Monetary Fund (IMF) has projected 5.4% GDP for 2014, presenting a positive outlook for the Indian economy. RBI has raised the repo rate from 7.75 to 8.00% this quarter, which may result in a further• increase in consumer loan interest rates. Restricted sales transactions were seen in major cities during the quarter. New project• launches saw a sharp decline except in cities like Chennai, Bengaluru and Pune, which have seen ample new project launches. Developers have continued offering buyback schemes and possession-linked payment plans to provide much needed comfort to buyers. Capital values remain stable in most cities; however select micro markets with inherent demand witnessed increases in the range of 2 -5% QoQ. COLLIERS VIEW: An increase in the number of enquiries for residential properties has• been seen across the major cities. However, transaction volumes have not improved much. With the new Government in place and business confidence is gaining momentum, we anticipate an increase in residential sales in the coming quarter. Capital values are expected to remain stable in the near term; however, there will be upward pressure in the medium to long term due to increased demand. 4.0 3.0 6.0 5.0 8.0 9.0 7.0 11.0 10.0 12.0 Mar‘09 Jan‘09 Nov‘09 Mar‘11 Mar‘12 May‘13 Jul‘13 Sep‘13 Mar‘14 Jan‘14 May‘14 Nov‘13 Mar‘13 Jan‘11 May‘09 May‘10 Mar‘10 Jan‘10 May‘11 May‘12 May’08 Mar’08 Jan‘08 Jul‘09 Jul‘10 Jul‘11 Jul’12 Dec’08 Nov’08 Sep’08 Jul‘08 Sep‘09 Nov‘10 Sep‘10 Sep‘11 Sep‘12 Jan‘12 Jan‘13 Nov‘11 Nov‘12 2.0 1.0 0.0 -1.0 -2.0 Source: Goverment of India, Colliers International India Research Research & Forecast Report India I Residential | May 2014 1 SBI Home loan rate for loan upto INR 30 Lakhs 2 SBI Fixed deposit rate for a period of more than one year and amount below INR 1 Crore 3 Realty Index is a free float weighted index, comprised of real estate development companies in the BSE-500 Index. 2 3 1
  • 3. 3 1Q 2014 2Q 2014F Capital Value Rental Value New Project Construction Pace MumBAI SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)**  Godrej Central Chembur (E) Godrej Properties Ltd. 4Q 2018 14,000  Runwal Forest Kanjurmarg Runwal Group 4Q 2018 9,900 Wadhwa Anantya Chembur (W)  Wadhwa Group 4Q 2018 15,500 The Only   Majiwada, Thane Lodha Group 4Q 2018 8,470 White City   Kandivali (E)  Rajesh Lifespaces 4Q 2018 11,300 Auris Serenity Malad Sheth Creators 4Q 2017 13,500 • During the quarter, the Mumbai residential market remained subdued with lower transaction volumes in the secondary market. However, the primary market witnessed increased traction in select mid-range projects. The primary residential market• witnessed increased project launches QoQ. Developers, such as Godrej Ltd, Runwal Group, Lodha Group, Wadhwa Group and Rajesh Lifespaces, have launched their residential projects in the central and western suburb micro- markets. Limited new supply was added to the• market this quarter. A project that witnessed completion this quarter was Aurum by Lodha Group at Kanjurmarg, which is currently priced at INR12,500 per sq ft. During 1Q 2014, capital values in the• central and western Suburbs rose in the range of 1 - 9% QoQ. However micro- markets, like Colaba, Cuffe Parade and Powai, witnessed a decline in the range of 3 - 5% QoQ. The decreasing demand and cost• optimisation from corporations have prompted landlords to lower their rent expectations in order to secure tenants. The rents declined in the range of 1 - 7% QoQ in most of the micro-markets, except a few, such as Bandra, Khar, Juhu and Powai, where rents rose marginally in the range of 1 – 2%. COLLIERS VIEW:• Going forward, absorption in the luxury segment will remainunderpressure.Thepre-launches in the mid-segment and low-end segments will continue to have traction at the introductory prices. Overall capital values in the primary and secondary sales markets are expected to remain stable in the short to medium term. 0 10,000 20,000 30,000 40,000 60,000 70,000 50,000 80,000 INRpersq.ft.INRpersq.ft.permonth 1Q2008 3Q2008 3Q2009 1Q2009 1Q2010 3Q2010 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F 1Q2015F 1Q2014F 1Q2011 3Q2011 80,000 40,000 50,000 70,000 60,000 10,000 20,000 30,000 0 Mumbai Prabhadevi Colaba, Cuffe Parade SouthMumbai Malabar Hill, Altamount Road, Carmichael Road Worli Worli Breach Candy, Napeansea Road, Peddar Road Prabhadevi Bandra Bandra Santacruz Santacruz Andheri Andheri Powai Powai Khar Khar Juhu Juhu 200 150 100 50 0 Malabar Hill, Altamount Road, Carmichael Road Colaba, Cuffe Parade Bandra Juhu Khar Prabhadevi Breach Candy, Napeansea Road, Peddar Road Andheri Worli Santacruz INRPersq.ft. Note: Above values represents indicative asking price for premium properties Note: * As mentioned by developer ** Base selling price as quoted by developer AVERAGE CAPITAL VALUE RANGE AVERAGE rental value AVERAGE CAPITAL VALUE TRENDS CITY RESIDENTIAL BAROMETER Note: Ongoing Price: Indicative asking price in the primary market. Micro Market Ongoing Price (P.S.F) Thane - Kalyan 4,000 - 8,000 Navi Mumbai 3,500 - 7,500 Virar - Boisar 3,000 - 5,500 INVESTMENT OPPORTUNITIES
  • 4. 4 Research & Forecast Report | May 2014 | Residential | Colliers International 1Q 2014 2Q 2014F Capital Value Rental Value New Project Construction Pace Delhi SELECT ONGOING PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Capital Greens Phase V Shivaji Marg DLF Ltd. 2Q 2015 18,000 Castlewood Okhla Indiabulls Ltd. 2Q 2014 12,800 Kings Court Greater Kailash- II DLF Ltd. 2Q 2015 40,000 Queens Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000 Signature Villas Connaught Place Tata Housing Ltd. 4Q 2017 120,000 - 150,000 Winter Hills Dwaraka Morh Umang Realtech 2Q 2014 10,250 In 1Q 2014, amid economic and political• volatility, the Delhi prime residential market remained distressed for the fourth consecutive quarter. Sales volume declined further as investors and end- users adopted a “wait-and-watch” strategy. Similarly, the leasing market slowed• considerably due to limited hiring by multinational companies and embassies. With tenants getting more cost conscious, landlords were more open to rent negotiations. This quarter, rents for prime residential properties witnessed a decline in the range of 6% to 10% in almost all the micro markets. Capital value remained stable as• landlords are also in a “wait-and-see” mode and seem to be in no hurry to make a deal. The local authorities have proposed• to increase the circle rate in the city by another 20% to 30% to rationalise registration in view of ongoing market rates. The last circle rate revision happened in 2012 when the minimum rate for valuation of land and immovable properties was increased substantially. This increase in rate is likely to be applicable after May, 2014. COLLIERS VIEW:• With no formal government in place, as well as ongoing elections and political uncertainties, the city’s overall sentiment will remain cautious. We anticipate an increase in sales volumes in the coming month post- elections, as investors as well as end- users that are away from the market will come back once the political uncertainty is cleared. Capital and rental values are expected to remain stable in the near term for premium properties. 0 15,000 30,000 45,000 60,000 90,000 105,000 75,000 120,000 INRpersq.ft.INRpersq.ft.permonth 1Q2008 3Q2008 3Q2009 1Q2009 1Q2010 3Q2010 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F 1Q2015F 1Q2014F 1Q2011 3Q2011 1,00,000 90,000 80,000 40,000 50,000 70,000 60,000 10,000 20,000 30,000 0 Delhi 200 160 120 80 40 0 INRPersq.ft. Note: Above values represents indicative asking price for premium properties Note: * As mentioned by developer ** Base selling price as quoted by developer AVERAGE CAPITAL VALUE RANGE AVERAGE rental value AVERAGE CAPITAL VALUE TRENDS CITY RESIDENTIAL BAROMETER AnandNiketan, VasantVihar Panchashila,Anand- lok,NitiBagh,SDA FriendsColony, MaharaniBagh ShantiNiketan, Westend GreaterKailashI& II,SouthExtension GolfLinks,JorBagh, SunderNagar ChanakyaPuri PrithvirajRoad, AurangzebRoad Anand Niketan, Vasant Vihar Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh Shanti Niketan, Westend Greater Kailash I & II, South Extension Golf Links, Jor Bagh, Sunder Nagar Chanakya Puri Prithviraj Road, Aurangzeb Road Prithviraj Road, Aurangzeb Road Golf Links, Jor Bagh, Sundar Nagar Shanti Niketan, Westend Chanakya Puri Friends Colony, Maharani Bagh Greater Kailash I & II, South Extension Panchashila, Anandlok, Niti Bagh, SDA Anand Niketan, Vasant Vihar
  • 5. 5 1Q 2014 2Q 2014F Capital Value Rental Value New Project Construction Pace Gurgaon SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Godrej Oasis Sector 88A Godrej Properties 4Q 2017 6,500 Platina Sector 103 Satya Group 4Q 2017 5,000 Tata Arabella Sohna Road Tata Housing 4Q 2017 12,500 - 14,000 Ultima Phase-II Sector 81 DLF Ltd. 4Q 2017 8,700 Vatika Boulevard Sector 83 Vatika Group 4Q 2017 6,800 Vatika One Express City Sector 88A, 88B & 89A Vatika Group 4Q 2018 7,250 0 5,000 10,000 15,000 20,000 30,000 35,000 40,000 25,000 45,000 INRpersq.ft.INRpersq.ft.permonth 3Q2008 3Q2009 1Q2009 1Q2010 3Q2010 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F 1Q2014F 1Q2011 3Q2011 18,000 8,000 10,000 16,000 14,000 12,000 2,000 4,000 6,000 0 Gurgaon NH-8 Sohna Road & Ext GolfCourseRoad DLF Phase I SohnaRoad&Ext DLFPhaseI NH - 8 Golf Course Road SushantLok Sushant Lok 80 60 40 20 0 INRPersq.ft. Note: Above values represents indicative asking price for premium properties Note: * As mentioned by developer ** Base selling price as quoted by developer AVERAGE CAPITAL VALUE RANGE AVERAGE rental value AVERAGE CAPITAL VALUE TRENDS CITY RESIDENTIAL BAROMETER Note: Ongoing Price: Indicative asking price in the primary market. Micro Market Ongoing Price (P.S.F) Golf Course Road Extension 7,500 - 9,000 Sohna Extension 4,000 - 5,000 Pataudi Road 4,500 - 5,500 New Gurgaon 4,000 - 5,000 INVESTMENT OPPORTUNITIES Gurgaon residential market witnessed• overall reduced demand in both primary and secondary markets during the surveyed quarter. In the primary market, only a few• premium projects / parts of projects were launched, including: “Godrej Oasis” by Godrej Properties at Sector 88A; “Platina” by Satya Group at Sector 103; “Tata Arabella” by Tata Housing at Sohna Road; “Ultima Phase-II” by DLF Ltd at Sector 81; and “Vatika Boulevard” and “Vatika One Express City” by Vatika Group at Sector 83 and Sectors 88A, 88B and 89A, respectively. These projects were priced in the range between INR5,000 to INR14,000 per sq ft. The developers have not reduced sales• prices in their newly launched projects; however, they were offering innovative payment plans such as partial payment on possession and buyback options to generate sales amid waning demand. In the secondary market there was a• downward pressure on capital values, however asking prices were remained stable. This quarter, Gurgaon district• administration has revised the circle rate with effect from April 1st 2014. The average hike in the circle rate is 15% across the city. This increase in the circle rate will lead to high registration cost of properties in the city. Circle rate is the minimum rate defined by the state government for property registration. COLLIERS VIEW:• Looking forward, capital and rental values are expected to remain stable. Investor activity is expected to pick up post new Government formation; however, end- users will remain at bay due to high price points and relatively fewer options available for mid-segment housing. DLF Phase I NH-8 Golf Course Road Sushant Lok Sohna Road & Ext 1Q2015F
  • 6. 6 Research & Forecast Report | May 2014 | Residential | Colliers International 1Q 2014 2Q 2014F Capital Value Rental Value New Project Construction Pace Noida SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Exotica Sports city Sector 79 Exotica Housing 4Q 2017 4,300 Wave Irenia Sector 32 & 25A Wave Group 4Q 2017 8,200 Lotus Greens Yamuna Expressway Lotus Greens 4Q 2018 2,700 Lotus Square Residences Sector 98 Lotus Greens 4Q 2018 7,500 Romano Sector 118 Supertech Ltd. 4Q 2017 4,350 The Urban Walk Sector 121 Techzona Group 4Q 2017 5,000 0 1,500 3,000 4,500 6,000 9,000 10,500 7,500 12,000 INRpersq.ft.INRpersq.ft.permonth 3Q2009 1Q2010 3Q2010 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F 1Q2015F 1Q2014F 1Q2011 3Q2011 12,000 6,000 7,500 10,500 9,000 1,500 3,000 4,500 0 NOIDA Sector 50 Sector 44 Sector 61,62,63 Sector 28,29,30 Sector 92/93 40 30 20 10 0 INRPersq.ft. Note: Above values represents indicative asking price for premium properties Note: * As mentioned by developer ** Base selling price as quoted by developer AVERAGE CAPITAL VALUE RANGE AVERAGE rental value AVERAGE CAPITAL VALUE TRENDS CITY RESIDENTIAL BAROMETER Note: Ongoing Price: Indicative asking price in the primary market. Micro Market Ongoing Price (P.S.F) NOIDA Expressway 4,000 - 7,000 Sectors 71 to 83 4,500 - 5,500 INVESTMENT OPPORTUNITIES Sector28,29,30 Sector92/93 Sector61,62.,63 Sector50 Sector44 Sector 61,62,63 Sector 92 / 93 Sector 28,29,30 Sector 50Sector 44 The NOIDA residential market witnessed• revived interest from end-users as well as investors. There has been an increase in inquiriesforprojectsnearingcompletion in the secondary sales market. However, this has not resulted in an increase in transaction volumes. In 1Q 2014, NOIDA witnessed launch of• few premium and mid-range projects. No new major projects / phases of• projects were completed this quarter; however, there are several projects awaiting an occupation certificate that are expected to be delivered in the next two quarters in sectors along the NOIDA Expressway. In 1Q 2014, capital values remained• stable across all micro-markets. Rents in institutional sectors, such as Sectors 61 – 63, witnessed downward pressure as tenants prefer new projects with amenities in nearby localities. In order to boost real estate activity,• the local government body this quarter gave the nod to a mixed land-use policy that allows commercial activities in residential sectors. The authority allows commercial activities in residential areas having roads of 24 m wide or more. This will further stimulate other real estate activities like construction of hospitals, banks,schools,ATMkiosks,guesthouses and other business premises. COLLIERS VIEW:• After the new Government formation, the city residential demand scenario is likely to improve. Moreover, a number of new projects are expected to be completed in the coming quarters. This upcoming supply will keep capital values in check in the secondary market. In the primary market, developers will keep offering freebies and other promotional offers in order to clear their unsold inventories.
  • 7. 7 1Q 2014 2Q 2014F Capital Value Rental Value New Project Construction Pace Chennai 2,000 6,000 18,000 14,000 10,000 22,000 30,000 26,000 38,000 34,000 INRpersq.ft.INRpersq.ft.permonth 1Q2008 3Q2008 3Q2009 1Q2009 1Q2010 3Q2010 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F 1Q2015F 1Q2014F 1Q2011 3Q2011 25,000 9,000 13,000 21,000 17,000 1,000 5,000 Chennai Anna Nagar Boat Club Adyar Nungambakkam Beasant Nagar T Nagar Sholinganallur Siruseri/ Kazipattur Alwarpet / R A Puram Velachery 90 75 60 45 30 15 0 INRPersq.ft. Note: Above values represents indicative asking price for premium properties Note: * As mentioned by developer ** Base selling price as quoted by developer AVERAGE CAPITAL VALUE RANGE AVERAGE rental value AVERAGE CAPITAL VALUE TRENDS CITY RESIDENTIAL BAROMETER Note: Ongoing Price: Indicative asking price in the primary market. Micro Market Ongoing Price (P.S.F) Velachery 5,000 - 7,000 Sholinganallur 3,500 - 4,200 Siruseri/ Kazipattur 3,000 - 4,000 Kelambakkam 3,000 - 4,000 INVESTMENT OPPORTUNITIES SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Atlantic Egmore Ceebros Property Development 4Q 2016 17,000 Avana Nungambakkam AR Homes 2Q 2015 26,000 Corniche Egmore Ramky Wavoo developers 4Q 2016 16,000 La Verde Mare Thoraipakkam Jains Housing 4Q 2016 7,200 Pallagio Thoraipakkam Casa Grande 4Q 2016 7,800 White Rose Thoraipakkam Bhoomi & Buildings 4Q 2016 5,999 Adyar AnnaNagar Nungambakkam Alwarpet/ RAPuram Velachery Sholinganallur Siruseri/Kazipattur TNagar BeasantNagar BoatClub Boat Club Siruseri/ Kazipattur Velachery Sholinganallur Anna Nagar T Nagar AdyarBeasant Nagar Nugambakkam Alwarpet / R A Puram During 1Q 2014, increased demand• for premium residential projects was noticed precisely in micro-markets, like R.A. Puram, Thoraipakkam, Alwarpet, Anna Nagar and Kilpauk. Mid-income projects have also witnessed marginally increased absorption in peripheral locations. Chennai witnessed an increase in launch• of premium and mid-range projects in 1Q 2014. During the quarter, Chennai based XS• Real Group and Hayat Invest Co. of Kuwait have partnered for a 14-acre residential project located near Siruseri IT Park. The project will target the middle-income group and is expected to be launched in 2Q 2014. This quarter witnessed completion• of various premium projects such as “Centralis” by Coromandel Engg at Boat Club; “Sreshta Vasanth” by Sumanth & Co at Alwarpet; “Sukhin” by Barath Building Construction; and “Ananta” by AR Homes at Palavakkam, all priced in the range of INR12,000 to INR30,000 per sq ft; and mid-range projects like “Bollineni Hillside” by BSCPL Infra at Perumbakkam; “Amber” by Indus Builders at Saidapet; and “Belvedere” by Ceebros Constructions. These are currently priced in the range of INR5,300 - 8,500 per sq ft. Capital values increased in the range• of 2 - 5% QoQ in the prime micro- markets, like T Nagar, Beasant Nagar and Sholinganallur. The remaining micro- markets were stable. COLLIERS VIEW:• Demand from both occupiers and investors will continue to grow in the coming quarters. Further backed up by strong construction activities and new project launches, we expect an increase in capital values in almost all micro-markets.
  • 8. 8 Research & Forecast Report | May 2014 | Residential | Colliers International Steady demand for premium residential• properties was seen during the quarter. Micro-marketslikeWhitefield,Electronic City, Hennur Road, Marathahalli and Binnypet witnessed new project launches in the price range of INR 3,500 - 6,100 per sq ft. The market witnessed completion• of various premium and mid-range projects / parts of projects like “Brigade Petunia” by Brigade Group at Jayanagar; “Salarpuria Greenage” by Salarpuria Group at Bommanahalli; “Arya Ananya” by Arya Gruha at Whitefield; “Sobha Aspire” by Sobha Developers at Tumkur Road; “Legacy Ariston” by Legacy Group at Yelahanka; and “Neotown Smondoville” by Patel Realty at Electronic City. During the surveyed quarter, capital• values rose in the range of 3 - 4% QoQ in micro-markets like Airport Road, Bannerghatta Road and Whitefield. However, the rest of the micro-markets remained stable. Continued demand from the IT/ITeS sector employees kept upward pressure on rentals and rents increased in the range of 2 - 9% QoQ in almost all micro-markets. The state government has proposed an• elevated road from Basaveshwara Circle to Hebbal in order to provide a hassle- free drive to Kempegowda International Airport (KIA). The total cost of the project is expected to be around INR1,200 crore. COLLIERS VIEW:• The overall sentiments look positive for the city. With increasing business confidence and a strong office market, demand in the residential sector is expected to improve from its current levels, specifically for premium and mid- range housing. A narrowing demand and supply gap should allow capital values to rise in the range of 4 - 6% in the near term across all micro-markets. 1Q 2014 2Q 2014F Capital Value Rental Value New Project Construction Pace Bengaluru SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Enchante Whitefield Olympia Group 3Q 2015 9,500 Godrej United Whitefield Godrej Properties 4Q 2017 5,400 Miccassa Kogilu Supertech Builders 4Q 2015 3,890 MJR Clique Electronic City MJR Builder 4Q 2016 3,490 Park West Binnypet Shapoorji Pallonji Developers 4Q 2017 6,450 Sterling Asecentia Marathahalli Sterling Developers 4Q 2016 6,100 0 4,000 8,000 12,000 16,000 24,000 28,000 20,000 32,000 INRpersq.ft.INRpersq.ft.permonth 1Q2008 3Q2008 3Q2009 1Q2009 1Q2010 3Q2010 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F 1Q2015F 1Q2014F 1Q2011 3Q2011 25,000 20,000 15,000 5,000 10,000 0 Bengaluru Jayanagar Central Palace Orchard Cooke Town Airport Road Indiranagar Koramangala Whitefield Yelahanka Bannerghatta Road 80 60 40 20 0 INRPersq.ft. Note: Above values represents indicative asking price for premium properties Note: * As mentioned by developer ** Base selling price as quoted by developer AVERAGE CAPITAL VALUE RANGE AVERAGE rental value AVERAGE CAPITAL VALUE TRENDS CITY RESIDENTIAL BAROMETER Note: Ongoing Price: Indicative asking price in the primary market. Micro Market Ongoing Price (P.S.F) Airport Road 5,000 - 7,000 Bannerghatta Road 4,200 - 6,000 Whitefield 4,400 - 6,000 Yelahanka 3,500 - 5,000 INVESTMENT OPPORTUNITIES Yelahanka BannerghattaRoad AirportRoad AirportRoad Whitefield Jayanagar CookeTown Koramangala Indiranagar PalaceOrchard Central Central Yelahanka Koramangala Indiranagar Jayanagar Bannerghatta Road Palace Orchard Cooke Town Airport Road Whitefield
  • 9. 9 1Q 2014 2Q 2014F Capital Value Rental Value New Project Construction Pace kolkata 1,000 3,000 5,000 9,000 7,000 13,000 15,000 19,000 17,000 11,000 21,000 23,000 INRpersq.ft.INRpersq.ft.permonth 1Q2008 3Q2008 3Q2009 1Q2009 1Q2010 3Q2010 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F 1Q2015F 1Q2014F 1Q2011 3Q2011 8,000 10,000 18,000 20,000 16,000 12,000 14,000 2,000 4,000 6,000 0 Kolkata 50 40 30 20 10 0 INRPersq.ft. Note: Above values represents indicative asking price for premium properties Note: * As mentioned by developer ** Base selling price as quoted by developer AVERAGE CAPITAL VALUE RANGE AVERAGE rental value AVERAGE CAPITAL VALUE TRENDS CITY RESIDENTIAL BAROMETER Note: Ongoing Price: Indicative asking price in the primary market. Micro Market Ongoing Price (P.S.F) Tollygunge 3,600 - 4,800 Behela 2,900 - 3,700 Salt Lake 4,000 - 6,000 EM Bypass 4,000 - 7,000 New Town -Rajarhat 3,200 - 4,600 INVESTMENT OPPORTUNITIES SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Blossom County New Alipore Vinayak Group 4Q 2018 6,100 Citrus Cove Rajpur Vinayak Group & PS Srijan 4Q 2017 4,050 Pratham BT Road Dhoot 4Q 2017 3,600 Sankalpa IV New Town WBIDFC 4Q 2016 4,800 Sonar Kella Baruipur Arrjavv 4Q 2017 2,390 Sukhmani Imperia Diamond Harbour Road Sukhmani Develop- ers Pvt Ltd 4Q 2017 8,000 In 1Q 2014, end-users remained the• primary demand generator in the primary residential market. Micro markets like Rajarhat, EM Bypass, New Town and Baguihati remained the preferred locations due to proximity to employment hubs, affordability and upcoming infrastructure. A few mid-range projects witnessed• completion this quarter, including “Sankalpa II & III” by WBIDFC at New Town and “Sunrise Symphony” by Surekha Group at Rajarhat. These projects were priced in the range of INR4,500 to INR4,800 per sq ft. Capitalvaluesinthepremiumresidential• market increased in the range of 1% to 9% QoQ in almost all the micro markets barring premium micro markets in central Kolkata where capital values remained stable. Correspondingly, rents also increased in the range of 2% to 9% QoQ in most of the micro markets; however, Bhawanipur, Tollygunge, Behela and New Town-Rajarhat registered a stable rent scenario this quarter due to large supply in these micro markets. For the first time in Kolkata, the local• government has reduced the circle rate in the range of 8% to 33% across the city to streamline property valuation by reducing discrepancies between registration price and actual market value of the property. COLLIERS VIEW:• The new government willplayavitalroleintermsofinfluencing and ruling the city’s real estate. However in observance of demand for mid- range and affordable housing projects, developers have started launching new projects. Going ahead, capital values are expected to strengthen further and increase in the range of 2% to 5% in the mid-term. Alipore Ballygunge Bhawanipur EMBypass PAShahRoad LoudonStreet NewTown-Rajarhat SaltLake Tollygunge VIPRoad Behela Bhawanipur PA Shah Road Tollygunge Loudon Street Behela AliporeEM Bypass Ballygunge Salt Lake VIP Road New Town Rajarhat Bhawanipur EM Bypass Ballygunge Behela Tollygunge P A Shah Road New Town - Rajarhat Loudon street Alipore VIP Road Salt Lake
  • 10. 10 Research & Forecast Report | May 2014 | Residential | Colliers International During this quarter, restricted demand• from speculators and investors has been seen in the premium and mid-range residential segments; however end-user demand remained positive. The market witnessed launches of a few• mid-range residential projects during the surveyed quarter. Various projects were completed this• quarter like “Suyog Nisrag” by Suyog Development Corporation at Wagholi; “Vishal Arc Glory” by Vishal Group at Hadapsar; “Shree Venkatesh Lake Vista” by Shree Venkatesh Buildcon at Ambegaon; “Megapolis Smart Homes” by Kumar Properties and “Village Residency” by The Pristine Horizon Promoters, both located at Hinjewadi; “Kirti Avenue” by Kirti Developers, “Gera Regent Manor” by Gera Development, and “Vascon Willows” by Vascon Infrastructure Ltd, all located at Baner. Capital values in all micro-markets• increased in the range of 2 - 4% QoQ. However, the remaining micro-markets like Deccan, Camp and Boat Club were stable. In a major land transaction, Kolte-Patil• Developers Ltd has bought 34 acres of land at Wakad for a consideration of approximately INR350 crore. The developer is planning a mixed-use project with residential and commercial development. COLLIERS VIEW:• The city witnessed an increased number of inquiries for residentialprojectsinbothmid-andhigh end segments this quarter. In the coming quarter, we expect that the residential market will start gaining significant traction. Capital values are expected to rise in mid-price and affordable housing locations such as Pimpri Chinchwad, Chakan and Kondhwa in the marginal range of 2 to 3% on a quarterly basis. 1Q 2014 2Q 2014F Capital Value Rental Value New Project Construction Pace Pune SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Balewadi F-Residences Balewadi Eiffel Group 4Q 2016 6,000 Calyx’ Navyangan Pirangut Calyx Group 3Q 2017 3,150 Ganga Platino Kharadi Goel Ganga Developments 4Q 2016 5,700 Majestique City Wagholi Majestique Group 4Q 2017 4,000 Pharande Puneville Wakad Pharande Spaces 1Q 2017 4,800 Sobha Orion Kondhwa Sobha Developers 4Q 2017 7,000 1,000 3,000 5,000 7,000 11,000 15,000 13,000 9,000 INRpersq.ft.INRpersq.ft.permonth 3Q2009 1Q2009 1Q2010 3Q2010 1Q2012 3Q2012 1Q2013 3Q2013 3Q2014F 1Q2015F 1Q2014F 1Q2011 3Q2011 11,000 6,000 8,000 7,000 10,000 9,000 3,000 4,000 5,000 2,000 Pune 30 25 20 15 10 5 0 INRPersq.ft. Note: Above values represents indicative asking price for premium properties Note: * As mentioned by developer ** Base selling price as quoted by developer AVERAGE CAPITAL VALUE RANGE AVERAGE rental value AVERAGE CAPITAL VALUE TRENDS CITY RESIDENTIAL BAROMETER Note: Ongoing Price: Indicative asking price in the primary market. Micro Market Ongoing Price (P.S.F) Kalyani Nagar/ Viman Nagar/ Kharadi 5,000 - 12,000 Baner/Hinjewadi/ Wakad/Pashan 3,800 - 6,000 Kothrud/Bavdhan/ Wajre 3,800 - 6,000 NIBM/Undri/ Kondhwa 3,800 - 5,000 Pimpri/Chinchwad/ Chakan 3,000 - 4,500 INVESTMENT OPPORTUNITIES KalyaniNagar/ VimanNagar/ Kharadi Bhawanipur Deccan/Camp/ BoatClub Baner/Hinjewadi/ Wakad/Pashan Magarpatta/ Hadapsar NIBM/Undri /Kondhwa Kothrud/ Bavdhan/ Wajre Pimpri/Chinchwad/ Chakan Kalyani Nagar/Vi- man Nagar/Kharadi Bhawanipur Deccan/Camp /Boat Club Baner/Hinjewadi /Wakad/Pashan Magarpatta/ Hadapsar NIBM/ Undri/ Kondhwa Kothrud/ Bavdhan/ Wajre Pimpri/ Chinchwad /Chakan Kalyani Nagar/Viman Nagar/ Kharadi Kothrud/Bavdhan/Wajre NIBM/Undri/Kondhwa Pimpri/Chinchwad/Chakan Deccan/Camp/Boat Club/ Central Pune Magarpatta/Hadapsar Baner/Hinjewadi/Wakad/ Pashan
  • 11. 11 Mumbai The high-end residential real estate markets in Mumbai include Malabar Hill, Altamount Road, Carmichael Road, Napean Sea Road, Breach Candy, Colaba, Cuffe Parade, Prabhadevi, Worli, Bandra, Khar, Santacruz, Juhu and Powai. Delhi The prime residential areas in Delhi are in the South region and comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan and Central Delhi locations. These areas enjoy proximity to embassies, the airport and central commercial areas - Connaught Place. Gurgaon The prime residential locations of Gurgaon include Golf Course Road, DLF Phase I, Sushant Lok, NH-8 and Sohna Road. Dwarka Expressway,SohnaRegion,PataudiRoadandSouthernPeripheral Road (SPR) are also emerging as a preferred residential location owing to its proximity to the national capital. NOIDA NOIDA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and NOIDA - Greater NOIDA Expressway. Most of the new projects launches are concentrated in new sectors such as Sector 70 - 78 and sectors along NOIDA - Greater NOIDA Expressway. Chennai The prime residential areas in Chennai include Boat Club, R.A.Puram, MRC Nagar, Thiruvanmiyur, Valmiki Nagar and Besant Nagar, R.A Puram, Mylapore and Adyar in South Chennai, Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, T. Nagar in Central Chennai; and Anna Nagar, Kilpauk in North West Chennai. Bengaluru (Bangalore) The residential market of Bengaluru comprises both apartments and independent residences. Currently, high-end residential developments are mainly concentrated along the CBD, and Eastern and South precincts of the city. Recently, Northern Bengaluru has also witnessed a spree of realty activity facilitated by the new International Airport at Devanhalli. Kolkata The prime residential areas in Kolkata include PA Shah Road, Tollygunge and Bhawanipur in South Kolkata, Alipore and Behala in South-west Kolkata, Loudon Street and Ballygunge in Central Kolkata; and Salt Lake, EM Bypass and VIP Road in North Kolkata. Pune The prime residential areas in Pune include Kalyani Nagar, Viman Nagar, Boat Club Road, NIBM Road, Magarpatta, Hadapsar, Koregaon Park. Recently, increased activities has been witnessed in Pimpri-Chinchwad, Baner-Pashan and Kondhwa. Residential Submarkets CITY BAROMETERS Increasing as compared to previous quarter Decreasing as compared to previous quarter Remained stable from previous quarter
  • 12. 12 Research & Forecast Report | May 2014 | Residential | Colliers International Copyright © 2014 Colliers International. ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. About Colliers International colliers.com 485 offices in 63 countries on 6 continents United States: 146 Canada: 44 Latin America: 25 186 EMEA: 84 $2.1 billion in annual revenue 1.46 billion square feet under management 15,800 professionals Primary Authors: Surabhi Arora I Associate Director Research surabhi.arora@colliers.com +91 124 456 7500 Mumbai: raghavendra.prabhu@colliers.com Delhi / NCR: ajay.rakheja@colliers.com Amit Oberoi I National Director Valuation & Advisory Services & Research amit.oberoicolliers.com Sachin Sharma I Assistant Manager Research sachin.sharma@colliers.com Technopolis Building, 1st Floor, DLF Golf Course Road, Sector 54, Gurgaon - 122 002 TEL +91 124 456 7500 Bengaluru: goutam.chakraborty@colliers.com Pune: suresh.castellino@colliers.com Chennai: kaushik.reddy@colliers.com Kolkata: soumya.mukherjee@colliers.com For Residential Services: