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India residential property market overview november 2013

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• Demand for residential units in both the primary and secondary markets remained subdued in last quarter. …

• Demand for residential units in both the primary and secondary markets remained subdued in last quarter.

• Pressures of increasing unsold inventory and a liquidity crunch resulted in fewer project launches.

• Going forward end users and buyers will continue to be cautious due to the current uncertain economic and political conditions; coupled with high residential prices.

• The current oversupply in the market will get mitigated in the coming quarters, as very limited new projects are being launched.


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  • 1. Residential Property Market Overview INDIA QUARTERLY UPDATE | NOVEMBER | 2013 Accelerating success.
  • 2. INDIA | NOVEMBER 2013 | residential Research & forecast report SYDNEY CENTRAL BUSINESS DISTRICT research & forecast Report India RESIDENTIAL market MACRO ECONOMIC OVERVIEW • GDP growth estimates for the period that lasted from April to June 2013 were around 4.4%. This was the slowest growth rate recorded in the last four years. • Based on the wholesale price index, the headline inflation of October 2013 was at 7.00%, which marked an increase over the 6.46% headline inflation of September 2013. The Reserve Bank of India (RBI) increased the Repo Rate and Reverse Repo Rate by 25 basis points to 7.50 and 6.50 respectively. • The Indian Rupee plunged further compared to the US Dollar and the Euro in the quarter that spanned from July to October 2013 and closed at INR 61.07 against the US Dollar on 31st October 2013. ECONOMIC BAROMETER Oct-12 Oct-13 REPO RATE 8.00% 7.50% REVERSE REPO RATE 7.00% 6.50% CRR 4.25% 4.00% INFLATION 7.32% 7.00% 10.00% 10.10% 1 Home Loan Rate • Demand for residential units in both the primary and secondary markets remained subdued. Pressures of increasing unsold inventory and a liquidity crunch resulted in fewer project launches. There was an increase in the incentives being offered to sell property, such as easy payment plans, discounts and free gifts with bookings. • COLLIERS VIEW: End Users and buyers will continue to be cautious due to the current uncertain economic and political conditions; coupled with high residential prices. Capital values across most micro-markets in almost all the major cities will remain stable, even though transaction volume will remain constraint. Importantly, the current oversupply in the market will get mitigated in the coming quarters, as very limited new projects are being launched. ECONOMIC INDICATORS Return on Alternative Investments 12.0 Oct-12 Oct-13 YoY % 11.0 Change Gold 30,922 30,063 10.0 9.0 -2.78% 8.0 Fixed Deposit 59,853 EQUITY REALTY INDEX 3 45,917 -23.28% 8.50% 9.00% 5.58% 18,714 2 20,548 9.80% 1,879 1,328 -29.33% 7.0 In Percentage SILVER 6.0 5.0 4.0 3.0 2.0 1.0 www.colliers.com Source: Goverment of India, Colliers International India Research Cash Reserve Ratio Wholesale Price Index Oct ‘13 Jun ‘13 Aug ‘13 Feb‘13 Apr ‘13 Oct‘12 Dec‘12 Jun‘12 Aug‘12 Feb‘12 Apr‘12 Oct‘11 Dec‘11 Jun‘11 Aug‘11 Feb‘11 Apr‘11 Oct‘10 Repo Rate Dec‘10 Jun‘10 Aug‘10 Feb‘10 Apr‘10 Oct‘09 Dec‘09 Aug‘09 Apr ‘09 Jun ‘09 Feb ‘09 Oct‘08 Dec’08 -1.0 -2.0 jun’ 08 2 Aug’08 SBI Home Loan Rate for Loan upto INR 30 Lakhs 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. 1 Apr ‘08 0.0
  • 3. INDIA | NOVEMBER 2013 | residential MUMBAI AVERAGE CAPITAL VALUE RANGE 80,000 70,000 60,000 INR per sq.ft. • Mumbai’s residential property market witnessed low transaction volumes, despite the expected demand boost due to the festive season. This is attributed to various reasons, such as high price tags, making most projects unaffordable and Reserve Bank of India’s directive to discontinue the popular 80:20 financing scheme. 50,000 40,000 30,000 20,000 10,000 3,000 - 5,500 Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft. Andheri Powai Santacruz Juhu Khar Bandra Prabhadevi Worli 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1Q2014F Virar- Boisar AVERAGE CAPITAL VALUE TRENDS 3Q2014F 3,500 - 7,500 3Q2013 Navi Mumbai 1Q2013 4,000 - 8,000 Bandra Khar 3Q2012 Thane-Kalyan • COLLIERS VIEW: During the next few quarters, the city’s residential markets are expected to remain stagnant due to low liquidity and high price points. Absorption in the luxury segment will remain under pressure. The pre-launches in the mid and low end segment will continue to have traction at the introductory prices. The recent hike in the floor space index of 3 for the redevelopment of cessed buildings is expected to boost the city’s redevelopment projects to some extent and improve the overall supply situation over the long term. Overall capital values in the primary and secondary sales markets are expected to be under pressure in the short to medium term. Prabhadevi Santacruz 1Q2012 Ongoing Price (P.S.F) Worli 3Q2011 Micro Market 0 Juhu 1Q2011 INVESTMENT OPPORTUNITIES Colaba, Cuffe Parade 50 3Q2010 Construction Pace Andheri 1Q2010 New Project 150 1Q2009 Rental Value Breach Candy, Napeansea Road, Peddar Road 100 3Q2009 Capital Value • The average rental values across the city did not change during the quarter. Similarly, capital values also remained unchanged in most of the city’s micro markets, except in a few of West Mumbai’s precincts where marginal increases in the range of 1 - 3% QoQ were recorded. 200 Powai 1Q2008 4Q 2013F 3Q2008 3Q 2013 Malabar Hill, Altamount Road, Carmichael Road INR per sq.ft. per month CITY RESIDENTIAL BAROMETER AVERAGE RENTAL VALUE INR Per sq.ft. MumBAI South Mumbai 0 • The launch of new projects remained limited. Only a few premium projects were launched in locations, such as Prabhadevi, Wadala and Worli. These projects were priced in the range of INR18,000 - 45,000 per sq ft. Due to lack of capital, most of the residential projects in the luxury sector have been significantly delayed. Powai Colaba, Cuffe Parade Andheri Khar Bandra Worli Prabhadevi Juhu Santacruz Breach Candy, Napeansea Road, Peddar Road Malabar Hill, Altamount Road, Carmichael Road Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis. SELECT NEW PROJECTS Project Name Location Developer Name Bay One Prabhadevi Hubtown Ltd. 4Q 2017 45,000 New Cuffe Parade Codename Metropolis Wadala Lodha Group 4Q 2015 18,700 Princess Prabhadevi Sumer Group 4Q 2016 27,000 The Park Worli Lodha Group 4Q 2017 24,470 Sapphire Powai Sai Group of Industries 4Q 2015 10,500 Tentative Possession* Rate (Per Sq.ft.)** Note: * As mentioned by developer ** Base selling price as quoted by developer Colliers International | p. 3
  • 4. INDIA | NOVEMBER 2013 | residential delhI AVERAGE CAPITAL VALUE RANGE 120,000 105,000 90,000 INR per sq.ft. • Demand in the secondary sales market for premium residential properties have come down significantly this quarter, however due to the continual interest of expatriates and HNI’s in the prime locations of South and Central Delhi, the demand for leasing remained stable for premium properties. 75,000 60,000 45,000 30,000 Greater Kailash I & II, South Extension Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh Anand Niketan, Vasant Vihar Shanti Niketan, Westend Prithviraj Road, Aurangzeb Road AVERAGE CAPITAL VALUE TRENDS 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 3Q2014F 3Q2013 1Q2014F 1Q2013 0 3Q2012 10,000 1Q2012 • COLLIERS VIEW: Currently, Investors are holding for their decisions due to economic and political uncertainties. The activity in premium residential market will remain sluggish till the election. However, considering the fact that Delhi’s lease market is primarily driven by the officials of MNCs and expatriates that are currently trying to optimize their costs, rental values may further decline. Panchashila, Anandlok, Niti Bagh, SDA 3Q2011 • A number of infrastructural projects are taking place in the city simultaneously and causing traffic problems in select locations. This may cause the leasing demand to temporarily shift from these areas to other locales. Shanti Niketan, Westend Friends Colony, Maharani Bagh 1Q2011 Construction Pace Golf Links, Jor Bagh, Sunder Nagar 0 Greater Kailash I & II, South Extension 3Q2010 New Project 80 1Q2010 Rental Value Chanakya Puri 40 1Q2009 • There is a downward pressure on capital values as the asking price for prime residential properties in Delhi has come down by approximately 10 - 15%. However, not many deals have been concluded in the market. 160 120 3Q2009 Capital Value 200 Anand Niketan, Vasant Vihar 3Q2008 4Q 2013F Prithviraj Road, Aurangzeb Road 1Q2008 3Q 2013 AVERAGE RENTAL VALUE INR per sq.ft. per month CITY RESIDENTIAL BAROMETER • Due to the decisions of a number of MNCs / Embassies to attempt to contain their costs in the wake of the current economic scenario, rental values declined by 5 - 14% across the micro markets. INR Per sq.ft. delhi 0 Chanakya Puri • The new supply remained limited and primarily in the form of small redevelopment projects in areas, such as Vasant Vihar, Anand Niketan and Safdarjung Enclave. Golf Links, Jor Bagh, Sunder Nagar 15,000 Golf Links, Jor Bagh, Sunder Nagar Prithviraj Road, Aurangzeb Road Chanakya Puri Shanti Niketan, Westend Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh Greater Kailash I & II, South Extension Anand Niketan, Vasant Vihar Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis. SELECT ONGOING PROJECTS Project Name Location Developer Name Capital Greens Shivaji Marg DLF Ltd. 2Q 2015 14,000 Castlewood Okhla Indiabulls Ltd. 4Q 2013 12,800 Kings Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000 Queens Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000 Winter Hills Dwaraka Morh Umang Realtech 4Q 2013 10,250 Tentative Possession* Rate (Per Sq.ft.)** Note: * As mentioned by developer ** Base selling price as quoted by developer p. 4 | Colliers International
  • 5. INDIA | NOVEMBER 2013 | residential GURGAON AVERAGE CAPITAL VALUE RANGE 40,000 35,000 INR per sq.ft. • Gurgaon’s residential market remained stagnant for a second consecutive quarter. Sales volumes have reduced significantly, primarily because investors aren’t purchasing. However, the market continues to see robust demand for projects close to completion. 45,000 30,000 25,000 20,000 15,000 10,000 Pataudi Road 4,500 - 5,500 New Gurgaon 4,000 - 5,000 Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft. • The capital values of prime residential properties declined marginally by 1 - 3% QoQ in almost every micro market. However, they remained stable in a few locations, such as Sushant Lok and NH-8. • Colliers View: End-users activity is expected to remain restricted primarily due to high price points and relatively very less options available for mid-segment housing. Looking ahead, we expect demand for prime residential properties to remain stable. Capital and rental values both will remain under pressure and may decline by 2-4% in near term across all the micro markets. DLF Phase I Sohna Road & Ext Sushant Lok NH - 8 Golf Course Road 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 NH-8 Sohna Road & Ext Golf Course Road 3Q2014F 4,000 - 5,000 3Q2013 Sohna Region AVERAGE CAPITAL VALUE TRENDS 1Q2014F 7,500 - 9,000 DLF Phase I 1Q2013 Golf Course Extension Road Sushant Lok 3Q2012 Ongoing Price (P.S.F) 1Q2012 Micro Market 0 1Q2011 INVESTMENT OPPORTUNITIES Sohna Road & Ext 20 3Q2011 Construction Pace 40 NH - 8 1Q2010 New Project 60 3Q2010 Rental Value 80 3Q2009 Capital Value • During 3Q 2013, two premium projects / parts of projects were launched in Gurgaon – DLF Camelias on Golf Course Road and Microtek Green Burg, by Microtek – which were priced at INR25,000 per sq ft and INR16,950 per sq ft, respectively. A few more affordable projects were launched in the recently notified Sohna region in the price range of INR 4,000 - 5,000 per sq ft. Construction activity was slow and resulted in the completion of only a few premium residential projects / phases of projects, such as Spaze Privy, a property developed by the Spaze Group at Sector 72. Golf Course Road 1Q2009 4Q 2013F AVERAGE RENTAL VALUE 3Q2008 3Q 2013 0 INR per sq.ft. per month CITY RESIDENTIAL BAROMETER 5,000 INR Per sq.ft. Gurgaon • At the end of the quarter, with the start of the festive season, developers made lucrative offers to purchasers of residential real estate to revive demand. The various offers made by developers include deferred payment plans and waived charges on amenities such as free car parking, power back-up, club membership and freebies, such as microwave ovens, LCD TVs and washing machines, etc. Sushant Lok DLF Phase I Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis. SELECT NEW PROJECTS Project Name Location Developer Name DLF Camelias Golf Course Road DLF Ltd. 4Q 2018 25,000 Isle De Royale Gwal Pahadi ASF Group 4Q 2017 6,500 M3M Escala Sector 70A M3M 4Q 2017 6,250 Microtek Green Burg Sector 86 Microtek 4Q 2017 6,950 Tangerine Sector 89A ATS Group 4Q 2017 6,750 Tentative Possession* Rate (Per Sq.ft.)** Note: * As mentioned by developer ** Base selling price as quoted by developer Colliers International | p. 5
  • 6. INDIA | NOVEMBER 2013 | residential noida AVERAGE CAPITAL VALUE RANGE 3Q 2013 4Q 2013F Capital Value Rental Value New Project Construction Pace INVESTMENT OPPORTUNITIES Micro Market Ongoing Price (P.S.F) NOIDA Expressway 4,000 - 7,000 Sector 71 to 83 4,500 - 5,500 Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft. 3,000 Sector 28, 29, 30 Sector 50 AVERAGE RENTAL VALUE Sector 44 40 30 20 Sector 28, 29, 30 Sector 50 10 0 • Despite a revival in demand, overall capital and rental values remained stable due to the high stock level. However, projects nearing completion witnessed a 5-10% increase in capital values due to high-end user demand. • Colliers View: The market is expecting the completion of various projects that were launched during 2009-2010 and which have already been delayed from 1-2 years. This additional supply will keep rental values stable. Capital values will also remain stable across all the micro markets although projects nearing completion may see marginal increases. Sector 92/93 Sector 44 0 Sector 61, 62., 63 1,500 • A number of developers offered various giveaways such as gold coins and electronic gadgets, subvention in the EMI, special cash discounts, free car parking, power backups, etc. to attract customers. Customers responded well to these offers and the market witnessed marginal increase in sales activity. • The city did not witness any major completions this quarter as those projects scheduled to complete this quarter were delayed until early 2014. 7,500 6,000 4,500 INR per sq.ft. per month CITY RESIDENTIAL BAROMETER 9,000 Sector 92/93 Sector 61, 62., 63 AVERAGE CAPITAL VALUE TRENDS 12,000 10,500 9,000 7,500 INR Per sq.ft. noida 10,500 INR per sq.ft. • The NOIDA residential market witnessed comparatively fewer launches in 3Q 2013 than in the previous two quarters and the higher cost of debt compelled over-leveraged developers to try to liquidate their land-banks and existing projects. As a result, developers refrained from launching new projects and concentrated on selling their unsold stock. 12,000 6,000 4,500 3,000 1.500 Sector 61,62,63 3Q2014F 1Q2014F 3Q2013 Sector 44 Sector 50 Sector 92 / 93 1Q2013 3Q2012 1Q2012 3Q2011 1Q2011 3Q2010 1Q2010 3Q2009 0 Sector 28,29,30 Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis. SELECT NEW PROJECTS Project Name Location Developer Name Antriksh Aralias Sector 150 Antriksh Group 4Q 2016 4,700 The Downtown Sector 98 Sikka Group 4Q 2015 18,415 - 18,610 Mirabella Sector 79 Mahagun Group 4Q 2016 4,650 Saha Amadeas Sector 143 Saha Group 4Q 2016 6,500 Wave Livork Sector 32 Wave Group 4Q 2017 8,850 Tentative Possession* Rate (Per Sq.ft.)** Note: * As mentioned by developer ** Base selling price as quoted by developer p. 6 | Colliers International
  • 7. INDIA | NOVEMBER 2013 | residential CHENNAI AVERAGE CAPITAL VALUE RANGE chennai CITY RESIDENTIAL BAROMETER 4Q 2013F Capital Value Rental Value New Project Construction Pace INVESTMENT OPPORTUNITIES Ongoing Price (P.S.F) 5,000 - 7,000 3,500 - 4,200 3,000 - 4,000 3,000 - 4,000 INR per sq.ft. Siruseri/ Kazipattur Sholinganallur Velachery T Nagar Anna Nagar Beasant Nagar Adyar Nungambakkam Alwarpet / R A Puram Boat Club AVERAGE RENTAL VALUE Boat Club 75 Siruseri/ Kazipattur Nungambakkam 60 45 30 Sholinganallur Anna Nagar 15 0 Adyar Velachery • The average capital and rental values of the prime residential market increased by 2 - 9% QoQ. However, as buyer sentiment remained subdued in response to the prevailing high mortgage rates, the capital values of midrange properties remained stable during the quarter. Alwarpet / R A Puram Beasant Nagar T Nagar AVERAGE CAPITAL VALUE TRENDS 25,000 17,000 13,000 9,000 5,000 3Q2014F 1Q2014F 3Q2013F 1Q2013F 3Q2012 1Q2012 3Q2011 1,000 1Q2011 • COLLIERS VIEW: Adequate growth has been observed in the premium residential market over the last few quarters. Considering the upright demand from end users and investors, capital and rental values are expected to increase by 2 - 5% in the near term. 21,000 3Q2010 Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft. • The State Government imposed an additional charge of 2% on registration and made it mandatory that construction agreements signed between builders and buyers be registered. Currently, the buyer of a new apartment that is under construction must pay 8% (5% stamp duty, 2% surcharge and 1% registration fee) to register the property. 1Q2010 Kelambakkam 6,000 2,000 3Q2009 Siruseri/ Kazipattur 10,000 1Q2009 Sholinganallur 18,000 14,000 1Q2008 Velachery 26,000 22,000 3Q2008 Micro Market 30,000 INR Per sq.ft. 3Q 2013 • In 3Q 2013, numerous new projects were launched in the city. Locations, including R.A. Puram, Nungambakkam, Poonamallee, R.K. Salai, Moolakadai, Ambattur, Kovur and Polivakkam, had the largest number of new launches. Most of these projects were priced in the range of INR3,950 - 4,900 per sq ft. The premium projects that were launched in these areas had prices in the range of INR18,500 23,000 per sq ft. 38,000 34,000 INR per sq.ft. per month • During the quarter, increased traction was witnessed in Chennai’s residential market. The demand for premium and mid-segment projects remained upbeat. Due to the area’s proximity to the Anna Nagar & Chennai bypass road, a lot of investment activity was witnessed in Kolathur in North Chennai. Moreover, the completion of the Perambur flyover helped to improve the access to this emerging location. T Nagar Boat Club Alwarpet / R A Puram Sholinganallur Beasant Nagar Adyar Siruseri/ Kazipattur Nugambakkam Anna Nagar Velachery Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis. SELECT NEW PROJECTS Project Name Location Developer Name Imperia Nungambakkam Adroit Urban Developers 4Q 2014 23,000 Ingai Poonamallee Vasavi Housing & Infrastructure 4Q 2015 3,950 Lalique R.A.Puram ETA Star Property Developers 4Q 2015 18,500 Navarathina Ambattur Barath Building Construction 4Q 2015 4,200 Republic Kovur Akshaya Homes 4Q 2016 4,250 Whiteberry Moolakadai Navin Housing & Properties 4Q 2015 Tentative Possession* Rate (Per Sq.ft.)** 4,900 Note: * As mentioned by developer ** Base selling price as quoted by developer Colliers International | p. 7
  • 8. INDIA | NOVEMBER 2013 | RESIDENTIAL BENGALURU (BANGALORE) AVERAGE CAPITAL VALUE RANGE 32,000 Yelahanka 3,500 - 5,000 Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft. • The Karnataka Stamps and Registration Department has increased the guideline value for properties in the Bangalore Urban, Bangalore Rural and Ramanagara Districts. The guideline values have been revised to the tune of 40 - 100% in selected areas. • COLLIERS VIEW: Going forward, we expect capital values in both the primary and secondary sales markets to remain stable considering the huge supply in the pipeline and the continuous addition of new projects. The IT/ITeS sector will remain the primary demand generator for mid-range residential properties. Yelahanka Bannerghatta Road Airport Road Whitefield Airport Road Jayanagar Cooke Town Koramangala Indiranagar Palace Orchard Central 25,000 20,000 15,000 10,000 5,000 0 3Q2014F 4,400 - 6,000 AVERAGE CAPITAL VALUE TRENDS 1Q2014F Whitefield Indiranagar 1Q2013 4,200 - 6,000 Airport Road Bannerghatta Road 3Q2013 Bannerghatta Road • Rental values remained stable in almost all micro-markets barring Cooke Town, Jayanagar and Yelahanka where rental values have increased in the range of 6 - 7% QoQ. Palace Orchard 3Q2012 5,000 - 7,000 0 Koramangala 1Q2012 Airport Road Jayanagar 20 3Q2011 Ongoing Price (P.S.F) 40 Whitefield (Appts) 1Q2011 Micro Market Cooke Town 60 3Q2010 INVESTMENT OPPORTUNITIES Central 80 Yelahanka 1Q2010 Construction Pace AVERAGE RENTAL VALUE 3Q2009 New Project 0 • A few national-level developers such as Puravankara Projects Ltd, Nitesh Estates, Sobha Developers, Raffles Residency, Unishire and LGCL. Developers launched their new projects in micro-markets like Sarjapur, Whitefield, Kanakapura, Thanisandra and Yemalur. Projects were launched in the price range of INR4,000 to 8,000 per sq ft. • Capital values witnessed an increase in the range of 3 - 10% QoQ in select precincts of Jayanagar, Bannerghatta Road and Yelahanka, while capital values in all other micro-markets remained stable. Rental Value 4,000 1Q2009 Capital Value 8,000 1Q2008 4Q 2013F 16,000 3Q2008 3Q 2013 20,000 12,000 INR per sq.ft. per month CITY RESIDENTIAL BAROMETER 24,000 INR Per sq.ft. bengaluru 28,000 INR per sq.ft. • The Bengaluru residential market recorded increased transaction volumes in both primary and secondary markets. High demand has been observed in the mid-segment residential projects from the IT/ITeS workforce. The micro-markets, which attracted significant interest from buyers were Outer Ring Road (ORR), Whitefield, Jakkur and Koramangala. Central Cooke Town Jayanagar Indiranagar Airport Road Bannerghatta Road Yelahanka Whitefield Palace Orchard Koramangala Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis. SELECT NEW PROJECTS Project Name Location Developer Name Purva Skydale Sarjapur Road Puravanakara Ltd. 4Q 2016 5,200 Unishire Terraza Thanisandra Road Unishire Projects 4Q 2016 4,300 Pueblo Off Sarjapura Road Lalith Gangadhar Constructions 4Q 2016 7,500 Raffles Park Whitefield Raffles Residency 4Q 2015 7,500 Nitesh British Columbia Kanakapura Road Nitesh Estates 4Q 2016 3,900 Sobha Paldium Yemalur Road Sobha Developers 4Q 2016 8,210 Tentative Possession* Rate (Per Sq.ft.)** Note: * As mentioned by developer ** Base selling price as quoted by developer p. 8 | Colliers International
  • 9. INDIA | NOVEMBER 2013 | residential kolkata AVERAGE CAPITAL VALUE RANGE 21,000 19,000 17,000 INR per sq.ft. • During 3Q 2013, micro-markets like Dum Dum, Sonarpur, Rajarhat, Behala and Regent Park remain more active in terms of absorption in both primary and secondary markets. Various developers offered discounts in the range of 5 - 9% on the basic sales price to lure customers during the festive season. 15,000 13,000 11,000 9,000 7,000 5,000 3,000 4,000 - 6,000 EM Bypass 4,000 - 7,000 New Town -Rajarhat 3,200 - 4,600 Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft. • The Centre has approved the master plan presented by the West Bengal state government to develop Rajarhat New Town as a solar city. The master plan proposes an investment of INR 400 cr; has been prepared to reduce the projected energy demand from conventional power. • Colliers View: Demand in the Kolkata market is primarily driven by the mid- segment; due to this, capital values in the middle and affordable segments are likely to see marginal appreciation. A number of developers are planning to develop premium properties in prime locations of south central Kolkata. Behela VIP Road New Town -Rajarhat Tollygunge Salt Lake EM Bypass PA Shah Road Bhawanipur Loudon Street Ballygunge Alipore 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 3Q2014F Salt Lake 1Q2014F 2,900 - 3,700 AVERAGE CAPITAL VALUE TRENDS 1Q2013 Behela Loudon Street 3Q2013 3,600 - 4,800 Ballygunge 3Q2012 Tollygunge Behela Salt Lake 1Q2012 Ongoing Price (P.S.F) Alipore 3Q2011 Micro Market 0 EM Bypass 1Q2011 INVESTMENT OPPORTUNITIES 10 1Q2010 Construction Pace • Despite new launches and fair absorption, capital values for the prime residential properties remained stable across all micromarkets. However, rents rose by 4 - 9% QoQ in micro-markets like Tollygunge, Behela, Ballygunge, Salt Lake, EM Bypass, VIP Road and New Town – Rajarhat. Tollygunge 20 3Q2010 New Project PA Shah Road 30 VIP Road 3Q2009 Rental Value • This quarter saw the completion of few residential projects / parts of projects in micromarkets like Narendrapur and Rajarhat. 1Q2009 Capital Value 50 40 1Q2008 4Q 2013F Bhawanipur New Town Rajarhat 3Q2008 3Q 2013 AVERAGE RENTAL VALUE INR per sq.ft. per month CITY RESIDENTIAL BAROMETER 1,000 INR Per sq.ft. Kolkata • Numerous new launches were witnessed in micro-markets like Rajarhat, Barrackpore, Khardah, Baruipur and D H Road, where developers like Apni Dharti Developers, Shapoorji Paloonji, Siddha Group, Vibgyor Group and Merlin Group launched their residential projects in the price range of INR2,165 - 4,150 per sq ft. Bhawanipur Alipore Tollygunge Behela VIP Road P A Shah Road EM Bypass Salt Lake New Town - Rajarhat Ballygunge Loudon street Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis. SELECT NEW PROJECTS Project Name Location Developer Name Merlin Crest D H Road Merlin Group 4Q 2016 4,150 Happy Villa Rajarhat Siddha Group 4Q 2016 3,000 Siddha Water Front Khardah Siddha Group 4Q 2016 2,300 North City Barrackpore Vibgyor Group 4Q 2015 2,615 Sukhobristi Phase III Rajarhat Shapoorji Paloonji 4Q 2015 3,375 Swarnalata Baruipur Apni Dharti Developers 2Q 2016 2,165 Tentative Possession* Rate (Per Sq.ft.)** Note: * As mentioned by developer ** Base selling price as quoted by developer Colliers International | p. 9
  • 10. INDIA | NOVEMBER 2013 | RESIDENTIAL PUNE AVERAGE CAPITAL VALUE RANGE Kothrud/Bavdhan/Wajre 3,800 - 6,000 NIBM/Undri/Kondhwa 3,800 - 5,000 Pimpri/Chinchwad/Chakan 3,000 - 4,500 Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft. • COLLIERS VIEW: Although a general slowdown has been registered this year, with the onset of the festive period, developers are upbeat about the sales prospects in the upcoming quarter. New project launches will be lesser than in the previous year. Rents and capital values are likely to remain stable across micro-markets. Pimpri/Chinchwad/ Chakan NIBM/Undri/Kondhwa Kothrud/Bavdhan/ Wajre Baner/Hinjewadi/ Wakad/Pashan Magarpatta/Hadapsar Kalyani Nagar/Viman Nagar/Kharadi Bhawanipur Deccan/Camp/ Boat Club 5 0 NIBM/Undri/ Kondhwa Magarpatta/ Hadapsar Kothrud/ Bavdhan/ Wajre Baner/Hinjewadi/Wakad/Pashan AVERAGE CAPITAL VALUE TRENDS 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 Kalyani Nagar/Viman Nagar/Kharadi Deccan/Camp/Boat Club/Central Pune Kothrud/Bavdhan/Wajre Magarpatta/Hadapsar NIBM/Undri/Kondhwa 3Q2014F 3,800 - 6,000 10 1Q2014F Baner/Hinjewadi/Wakad/ Pashan Deccan/Camp /Boat Club 15 3Q2012 5,000 - 12,000 • In this quarter, the National Green Tribunal has approved the on-going construction of a 2.35-km road from Vithalwadi to the NH-4 bypass with a reduction in the width of the road from the proposed 30 m to 24 m and elevating it in the blue line area. In addition, the central government has approved a proposal to facilitate smooth transfer of government land for speedy execution of metro projects across the country. 20 1Q2013 Kalyani Nagar/Viman Nagar/Kharadi 25 Pimpri/Chinchwad/ Chakan 3Q2012 Ongoing Price (P.S.F) 30 1Q2012 Micro Market Kalyani Nagar/Viman Nagar/ Kharadi Bhawanipur 3Q2011 INVESTMENT OPPORTUNITIES AVERAGE RENTAL VALUE 1Q2011 Construction Pace 1,000 3Q2010 New Project 3,000 • During 3Q, capital values in Pune registered a slight increase in the eastern and western blocks primarily in mid-segment projects; however, average capital values have remained almost unchanged in the main micro-markets. • Parallel to capital prices, rental values have marked a slight increase in main residential hubs including central areas of Boat Club Road, Camp and Deccan, as well as eastern suburbs, such as Magarpatta, Hadapsar, and western areas namely Baner, Hinjewadi, Pashan and Wakad. Rental Value 5,000 1Q2010 Capital Value 7,000 1Q2009 4Q 2013F 9,000 3Q2009 3Q 2013 11,000 INR per sq.ft. per month CITY RESIDENTIAL BAROMETER 13,000 INR Per sq.ft. pune 15,000 INR per sq.ft. • In 3Q 2013, fewer new residential projects and new phases of on-going projects were launched in Pune due to subdued demand. Most of the developments are mainly located in areas such as Kalyani Nagar, Wakad, Kharadi, Hinjewadi, Wagholi and Pimpri. New launches were priced, on average, from INR 3,600 to 5,500 per sq ft, and INR 8,500 to 13,000 per sq ft for premium projects, which are scheduled to be completed after 2016. Baner/Hinjewadi/Wakad/Pashan Pimpri/Chinchwad/Chakan Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis. SELECT NEW PROJECTS Project Name Location Developer Name Castel Royale Excellente Bhosale Nagar ABIL Group 2Q 2016 6,000 Elite Silverio Chikali-Moshi Elite Landmarks 4Q 2015 3,750 Riviera Valentina Baner Skywards Developers 4Q 2015 8,500 Rohan Kritika Sinhagad Road Right Choice Builders 4Q 2015 8,600 Sky Line Wakad Adi Group 4Q 2014 5,100 Water Bay Kalyani Nagar Brahma Corporation 4Q 2016 5,200 Tentative Possession* Rate (Per Sq.ft.)** Note: * As mentioned by developer ** Base selling price as quoted by developer p. 10 | Colliers International
  • 11. INDIA | NOVEMBER 2013 | residential Residential SUBMARKETS 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 and Sohna Road. The Delhi- Jaipur Highway (NH-8) is also emerging as a preferred residential location owing to its proximity to the national capital. NOIDA NOIDA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and Taj Express Highway. Chennai The prime residential areas in Chennai include 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. CITY BAROMETERS Increasing as compared to previous quarter Decreasing as compared to previous quarter Remained stable from previous quarter Colliers International | p. 11
  • 12. INDIA | NOVEMBER 2013 Colliers International (India) provides property services to property Investors and Occupiers. We deliver customised service solutions utilising local and global knowledge in partnership with our clients via our property Investment and Occupier service lines. These service lines include - Office Services, Facility Management, Project Management, Residential Services, Investment Services and Valuation & Advisory Services. www.colliers.com/india 482 offices in 62 countries on 6 continents United States: 140 Canada: 42 Latin America: 20 Asia Pacific: 195 EMEA: 85 For national Residential Services related queries please contact: $2.0 billion in annual revenue Poonam Mahtani, National Director Residential Services & Knowledge Systems Poonam.mahtani@colliers.com Tel: +91 22 4050 4551 1.1 billion square feet under management Over 13,500 + professionals Mumbai : Raghavendra Prabhu, Office Director Raghavendra.prabhu@colliers.com IndiaBulls Finance Centre, 1701-A, 17th Floor, Tower 3, Elphinstone Mills, Senapati Bapat Marg, Mumbai, India - 400 013. Tel : +91 22 4050 4527, fax : +91 22 2351 4272 AUTHORS Amit Oberoi MRICS National Director, Valuation & Advisory; Research Email: Amit.oberoi@colliers.com Delhi NCR : Ajay Rakheja, Office Director Ajay.rakheja@colliers.com Surabhi Arora MRICS Associate Director, Research Email: Surabhi.arora@colliers.com New Delhi : tatesman House, 4th Floor, Barakhamba Road, Connaught Place, S New Delhi, India - 110001 Tel : +91 11 3044 6423, fax : +91 11 3044 6500 Gurgaon : Technopolis Building, 1st floor, DLF Golf Course Main Road, Sector 54, Gurgaon, India - 122002 Tel : +91 124 456 7500, fax : +91 124 456 7502 Bengaluru : Goutam Chakraborthy, Office Director Goutam.chakraborthy@colliers.com Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru, India - 560 042 Tel : +91 80 4079 5500, fax : +91 80 4112 3131 Sachin Sharma Assistant Manager, Research Email: Sachin.sharma@colliers.com Heliana Mano Assistant Manager, Research Email: Heliana.mano@colliers.com For general queries and feedback : India.Research@colliers.com Tel: +91 124 456 7580 Pune : Suresh Castellino, Office Director Suresh.castellino@colliers.com Hotel Le Meridian, 101, R.B.M. Road, Pune, India - 411 001 Tel : +91 20 4120 6438, fax : +91 20 4120 6434 This report and other research materials may be found on 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 document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries 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. Chennai : Kaushik Reddy, Office Director Kaushik.reddy@colliers.com Heavitree Complex, Unit 1C, 1st floor, 23, Spurtank Road, Chetpet, Chennai, India - 600 031 Tel : +91 44 2836 1064, fax : +91 44 2836 1377 Kolkata : Soumya Mukherjee , Office Director Soumya.mukherjee@colliers.com Infinity Business Centre, Infinity Benchmark, Room No 13, Level 18, Plot G - 1, Block EP & GP, Salt Lake Sector V, Kolkata - 700 091 West Bengal, India Tel : +91 33 2357 6501, fax : +91 33 2357 6502 © Copyright 2012 - 2013 All Rights Reserved. Recent Reports : GLOBAL RETAIL INDIA OFFICE INDIA RESIDENTIAL APAC OFFICE GLOBAL INDUSTRIAL BENGALURU RESIDENTIAL MARKET REAL ESTATE COLLIERS INTERNATIONAL INDIA RESEARCH Global | Retail | 2013 HIGHLIGHTS Trade Flows Bolster Industrial Demand in Asia and the Americas Tourists and Brands Flock to High Streets > Slower economic growth in China did not make a lasting dent on tourist spending in Hong Kong. Retail sales have rebounded from the lows of Q3 2012. The latest figures from the Hong Kong Tourism Board show that Hong Kong received a total of 12.5 million inbound visitors during the three-month period ending May 2013, an 11.8% year-over-year increase. Nine million of those visitors were from Mainland China. > Combined with the arrival of international brands such as Apple, Top Ten Global Retail Rents USD/SqFt/Year $3,052 $2,087 $1,994 Zara, and Topshop, in addition to luxury brands expanding their presence, the Australian CBD is once again a popular shopping destination. Pitt Street Mall in Sydney was ranked the 8th most expensive in Colliers’ High Street survey. $1,223 > Demand for flagship space in London continues to exceed supply, $1,114 driven largely from international retailers seeking a share of the spoils. This is leading to some notable rental growth in the West End’s core locations, with Regent Street witnessing double digit annual rental growth. > São Paulo and Rio de Janeiro remain leaders in shopping quality and diversity, achieving the most expensive rents and the focus of growth for luxury brands. Brazil’s High Street rents are the most costly in Latin America. São Paulo’s luxury shopping street Rua Oscar Freire saw a 15% growth in asking rents over the previous year. Rua Garcia D´Avila in Rio de Janeiro saw rents grow by 6.7%. > Most U.S. high street rents grew over last year. In New York, Fifth Avenue rents grew by 11 percent. At $3,052 per square foot, Fifth Avenue rents are the most expensive in the world. On Las Vegas Boulevard, asking rents grew by 25 percent. Philadelphia’s Walnut Street showed the biggest gains in the U.S., with 33.8 percent growth. BENGALURU RESIDENTIAL MARKET HEAT’S UP Global | Industrial | Midyear 2013 HIGHLIGHTS $1,325 > Despite anemic U.S. job growth, demand for North American industrial warehouse space and modern distribution centers remains strong. In Q1 2013, the North American vacancy rate declined for the eighth straight quarter, down 20 basis points to 8.20%. Canada’s vacancy rate stands at 4.13%. New York, NY, Fifth Avenue Hong Kong, Queen’s Road Central > Thanks in part to a recent drop in exports to the United States, Mexico Hong Kong, Canton Rd, Tsim Sha Tsui has seen slowing economic growth. In Q1 2013, several Mexico City industrial warehouses were vacated, slightly increasing the vacancy rate to 3.49%. New York, NY, Madison Avenue London, Old Bond Street Zurich, Bahnhofstrasse $871 Sydney, Pitt Street Mall $836 Milan, Via Monte Napoleone $834 Paris, Champs Élysées All Rents in USD * Exchange Rate as of March 31, 2013 LONDON (HEATHROW) 21.95 HONG KONG 21.83 SINGAPORE 21.02 TOKYO 20.61 20.04 OSLO 16.20 GENEVA PARIS 14.70 14.70 HELSINKI MINSK 13.23 SYDNEY 13.23 6-Month Change in Rent** > While occupier demand for industrial property in Brazil remains strong, Hong Kong, Causeway Bay $930 Global Top 10 Industrial Warehouse Rents* OFFICE PROPERTY MARKET OVERVIEW INDIA QUARTERLY UPDATE | OCTOBER | 2013 Residential Property Market Overview INDIA the market now appears to have stabilized into a more rational mode of sustained growth. São Paulo has seen positive net absorption, in spite of the final tally in 2012 showing a 23% decrease over the previous year. ASIA PACIFIC OFFICE MARKET OVERVIEW QUARTERLY UPDATE | AUGUST | 2013 Accelerating success. This book is printed on 100% Recyclable paper 11.1% > Demand for Beijing’s logistics properties remained as strong as it has 1Q 2013 Accelerating success. 12.5% Accelerating success. been since 2011. Rents grew by 11.41% year-over-year as of the end of Q1 2013. Shanghai’s industrial sector remained stable, with average asking rents for ground floor premises of high quality facilities in both the logistics and workshop sectors unchanged. LEGEND EMEA APAC > In Hong Kong, high quality warehouse buildings are nearly fully 3.9% occupied. Those users seeking to expand or rationalize their real estate costs have had to consider the option of split operations in lower quality buildings. > Indian economic growth remained sluggish through the end of 2012, however we expect industrial activity to improve, thanks to recent government actions. These include the government-proposed National Investment and Manufacturing Zones and the newly approved 51% foreign direct investment in multi-brand retail trading. PARIS 2.2% HELSINKI GENEVA TOKYO HONG KONG MIN SK OSL O SIN SYD GAP ORE NEY LONDON - (HEATHROW) O ver the last two decades, Bengaluru has cemented its position as the leading IT/ITeS. destination amongst top Indian cities. In 2012, Bengaluru commanded a 30% market-share of all of the commercial (office) real estate absorbed across the top seven cities (Delhi NCR, Mumbai, Pune, Chennai, Hyderabad and Kolkata). Bengaluru’s commercial absorption share was greater than Mumbai and Delhi NCR. The increase in jobs has been the primary growth-driver for residential real estate. The city’s population is expected to exceed 12 million by 2020, as compared to 8.5 million in 2011. Now of course the city is experiencing a surge in investors buying real estate. In spite of increasing prices, the city still is comparatively affordable compared to other major cities such as Mumbai and Delhi. With its higher rental yields and favourable currency exchange rates, Bengaluru is emerging as one of the most promising markets in the country for Residential investment. Moreover, the professional approach of developers is also providing much needed comfort to investors as well as end users. Considering the demand potential, it is not only Bengaluru-based developers that are investing, but many national level developers are also entering in this market. The government is also actively participating in the Colliers Picks: “The latest Colliers International research unvails top investment destination in Bengaluru (Bangalore)” PUNE RESIDENTIAL MARKET REAL ESTATE Colliers International India Research PUNE RESIDENTIAL MARKET LUXURIOUS YET AFFORDABLE P commercial developments are most Kharadi & Wagholi in East, Baner, Hinjewadi, Wakad & Pashan, Kothrud, attractive. Pune witnesses multiBavdhan & Wajre in west and Undri & directional growth of residential For investment purpose, the new projects in various locations such Kondhwa in the South. residential developments located as Pimpri, Chinchwad, Chakan & in peripheral areas alongside the Talegaon in North Viman Nagar Markets to witness residential real estate growth Upcoming Infrastructure Driving City’s Growth une is a classic example of the real estate market Colliers’s Pick: “The areas that will witness where commercial maximum uptake would be those having activities lead the commercial or industrial activities such as residential development Hinjewadi, Magarpatta, Viman Nagar, Kharadi, in the city. Pune has a large Wagholi, Chakan, Pimpri, Bavdhan, Warje & manufacturing base, with many Talegaon”. manufacturing as well as automobile companies having large plants. In last one decade the city has also city also attracts students who are the city has seen considerable emerged as a prominent IT/ITeS appreciation in property values. destination. Residential demand compelled by the city’s offering of The government is also actively in the city is mostly from the large quality education. A large share of the upcoming participating in the economic population of working professionals growth of the city by undertaking premium residential space in and the older generation retired various infrastructure projects such from the mid-management cadre Pune is in the form of township as Pune Metro, Bus Rapid Transit from Mumbai who find this place developments, the majority of which (BRT) and High Capacity Bus Route. attractive due to affordability, peace is concentrated in and around the IT and industrial hubs. In the past, and proximity to Mumbai. The Office Absorption in Million sq ft among major 7 cities in India Factors Driving Growth · Rising per capita income Favorable exchange rate (INR/USD) 1 $ = INR 56.45 reflects in demand for houses · Gradual shift in the demographic profile with more service professionals with higher income range · Falling Rupee making NRI investments more lucrative · High commercial absorption indicates sustained demand growth Source: Maharashtra Economic Survey, RBI, Colliers International India Research * December 2013 Rent (USD/PSF/YR) ** Local currency 58 THE INTERNATIONAL INDIAN July - August 2013 56 THE INTERNATIONAL INDIAN THE INTERNATIONAL INDIAN 57 Accelerating success.