Residential PropertyMarket OverviewINDIAQUARTERLY UPDATE | FEBRUARY | 2012Accelerating success.
4Q 2011 | THE KNOWLEDGEResearch reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia RESIDENTIAL market  ...
THE KNOWLEDGE | 4q 2011 | residential | Mumbai                                                                            ...
THE KNOWLEDGE | 4Q 2011 | residential | delhi                                                                             ...
Residential property market overview feb 2012
Residential property market overview feb 2012
Residential property market overview feb 2012
Residential property market overview feb 2012
Residential property market overview feb 2012
Residential property market overview feb 2012
Residential property market overview feb 2012
Residential property market overview feb 2012
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Residential property market overview feb 2012

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Colliers International is pleased to release the latest quarterly report: RESIDENTIAL PROPERTY MARKET OVERVIEW, INDIA - FEB 2012.
During 4Q 2011, the rental pegged up in almost all the major markets across India except Bengaluru and Chennai, this could attributed to the demand supply gap. Looking forward, demand is likely to witness moderate growth amid a weaker global economic outlook.

For feedback on this report please contact:
Surabhi Arora MRICS
Associate Director, Research
surabhi.arora@colliers.com

Sachin Sharma
Assistant Manager, Research
Sachin.sharma@colliers.com

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Residential property market overview feb 2012

  1. 1. Residential PropertyMarket OverviewINDIAQUARTERLY UPDATE | FEBRUARY | 2012Accelerating success.
  2. 2. 4Q 2011 | THE KNOWLEDGEResearch reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia RESIDENTIAL market MACRO ECONOMIC OVERVIEW • As per the latest Reserve Bank of India (RBI) projections GDP growth rate was recorded at 6.9% for 4Q 2011. The estimates by various agencies project the growth rate within a range of 7% to 8% for 2011-2012, suggesting a moderation in the growth process. • Provisional Wholesale Price Index as reported by Ministry of Finance was 7.47% for December 2011. This quarter there was a slight decline in primary inflation due to the decrease food inflation which stood at -3.36%. • In 4Q 2011, RBI did not increase repo rates. It further stated that there will not likely be any further increase to the policy rates, provided headline inflation moderates as is expected. The repo rate is currently at 8.5%. ECONOMIC BAROMETER Dec-10 Dec-11 • The Department of Industrial Policy and Promotion (DIPP) recorded FDI inflow for the period April to October, 2011 in Housing & Real Estate at INR 2,130 crores; which is a 2/3rd reduction REPO RATE 6.25% 8.50% from the highs of the years 2008-09 and 2009-10. The Housing and Construction sector contribution to the total FDI has also reduced to 2.31% from to 7% in the previous year. REVERSE REPO RATE 5.25% 7.50% • In 4Q 2011, Indian Rupee (INR) fell further by approximately 10% against the US Dollar to close CRR 6.00% 6.00% at INRs 54.40 to 1.00 USD on 29th December 2011. The Rupee also weakened against the Euro INFLATION 9.47% 7.47% dropping by approximately 5% to close the quarter at INRs 70.99 to 1.00 Euro. Home Loan Rate* 8.00% 11.00% • ualified Foreign Investor can now directly invest in the Indian Equity Market. The investment Q limit is to 5% and 10% for individual and QFIs respectively of their paid up capital of the company that they establish in India.Return on Alternative Investments ECONOMIC INDICATORS Dec-10 Dec-11 YoY % 12.0 Change Gold 20,496 28,041 36.81% 10.0 SILVER 45,346 51,168 12.84% 8.0 In Percentage Fixed Deposit 6.0 (= 1 year)** 8.50% 9.25% 8.82% EQUITY 20,389 15,836 -22.33% 4.0 REALTY INDEX 2,856 1,497 -47.57% 2.0 * SBI Home Loan Rate for Loan upto INR 50 Lakhs. 0.0 ** For amount below INR 1 Crore Jan ‘08 Feb ‘08 Mar ‘08 Apr ‘08 May ‘08 Jun ‘08 Jul ‘08 Aug ‘08 Sep‘08 Oct‘08 Nov ‘08 Dec ‘08 Jan ‘09 Feb ‘09 Mar ‘09 Apr ‘09 May ‘09 Jun ‘09 Jul ‘09 Aug ‘09 Sep‘09 Oct‘09 Nov ‘09 Dec ‘09 Jan ‘10 Feb ‘10 Mar ‘10 Apr ‘10 May ‘10 Jun ‘10 Jul ‘10 Aug ‘10 Sep‘10 Oct‘10 Nov ‘10 Dec ‘10 Jan ‘11 Feb ‘11 Mar ‘11 Apr ‘11 May ‘11 Jun ‘11 Jul ‘11 Aug ‘11 Sep‘11 Oct ‘11 Nov ‘11 Dec ‘11 (-2.0) Repo Rate Reverse Repo Rate Cash Reserve Ratio Wholesale Price Index Source: Colliers International India Researchwww.colliers.com
  3. 3. THE KNOWLEDGE | 4q 2011 | residential | Mumbai mumbai 4Q 2011 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • In 4Q 2011, various projects/phases of the projects were completed in Mumbai, including 70,000 60,000 “Kalpataru Aura” at Ghatkopar by Kalpataru 50,000 developers and “Lodha Bellissimo” by Lodha 40,000 Group at Mahalaxmi. 30,000 20,000 INR per sq ft 10,000 • This quarter, the Mumbai real estate market 0 witnessed the launch of several residential Khar Malabar Hill, Altamount Road, Carmichael Road Breach Candy, Napeansea Road, Peddar Road Colaba, Cuffe Parade Worli Prabhadevi Bandra Santacruz Juhu Andheri Powai projects, such as “Hill Crest” by Hubtown Ltd., “Aria” by Parinee Developers, “Island City Centre” by Bombay Realty, “Tripolis” by Ekta World and “Green Acres” by Nirman Relators. Lodha Group also launched its mix use development project called “NewMUMBAI Cuffe Parade”, on its 23-acre land parcel in Wadala. This land was purchased in 2010 at CAPITAL VALUE TRENDS approximately INR 4,500 crore.CITY RESIDENTIAL BAROMETER 75,000 • The residential market remained subdued, 65,000 3Q 2011 4Q 2011 and fewer transactions were recorded during 55,000 45,000 the quarter on account of an unstable global 35,000 RENTAL VALUE economy and rising interest. Capital values 25,000 INR per sq ft remained stable in almost all the micro CAPITAL VALUE 15,000 markets except for a few locations such as 5,000 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 Breach Candy, Napeansea Road, Peddar Road, Worli, Prabhadevi, Andheri and Powai where Breach Candy, Khar Colaba, Cuffe Andheri Napeansea Road, Parade capital value values witnessed an increase in Peddar Road Prabhadevi Bandra Worli Santacruz Malabar Hill, Altamount Road, Carmichael the range of 3 to 6% quarter on quarter. Juhu Road • The premium residential lease market remained active at locations such as Malabar 4Q 2011 PREMIUM RESIDENTIAL AVerage COLLIERS RESIDEX 4Q 2011 - MUMBAI Hill, Altamount Road, Carmichael Road, Breach RENTAL VALUE Candy, Napeansea Road, Peddar Road, Khar, 150 Juhu and Powai. These locations observed an Malabar Hill, Altamount Road, appreciation in rental values in the range of Carmichael Road 140 Breach Candy, Powai 200 Napeansea Rd., 130 1 % to 3% quarter on quarter. 150 Peddar rd. 120 110 Andheri 100 Colaba, Cuffe Parade 100 • The state government has decided to provide 50 90 an additional 0.33 Floor Space Index (FSI) 0 80 in suburbs of Mumbai. The FSI would Juhu Prabhadevi 70 60 be available to the developer on paying a 50 premium. Currently, the state government Santacruz Worli 2Q2008 4Q2008 2Q2009 4Q2009 3Q2008 3Q2009 allows an FSI of 1 in the suburbs and 1.33 in 2Q2010 4Q2010 1Q2008 1Q2009 3Q2010 1Q2010 2Q2011 4Q2011 3Q2011 1Q2011 Khar BandraRebase to 100 the island city. INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Aria Juhu Vile Parle Development Parinee Developers 4Q 2014 23,000 Green Acres Malad East Nirman Relators 4Q 2016 8,500 Hill Crest Jogeshwari Vikhroli Link Road Hub Town 2Q 2014 9,500 Island City Center Dadar East Bombay Realty 4Q 2016 37,500 Tripolis Goregaon West Ekta World 4Q 2016 10,500 Note: * As quoted by developerp. 3 | Colliers International Colliers International | p. 3
  4. 4. THE KNOWLEDGE | 4Q 2011 | residential | delhi Delhi 4Q 2011 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • During 4Q 2011, several redevelopment residential projects were ready for possession 100,000 90,000 in locations such as Anand Niketan, Vasant 80,000 Vihar, Westend, Defence Colony and Malcha 70,000 60,000 Marg. 50,000 40,000 30,000 INR per Sq Ft • No new project was launched during 4Q 20,000 10,000 2011. 0 Vasant Vihar Sunder Nagar Anand Niketan, 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 • Capital values for premium residential properties observed a minor appreciation in the range of 2% to 5% quarter on quarter across all the micro markets. This could be attributed to the limited premium supply anddelhi scope of development. CAPITAL VALUE TRENDS • Due to continuous demand from expatriatesCITY RESIDENTIAL BAROMETER and officials of MNC and Indian Corporate 90,000 for prime residential properties, rental values 80,000 70,000 3Q 2011 4Q 2011 recorded an increase in the range of 7 to 60,000 10% quarter on quarter across all the micro 50,000 40,000 RENTAL VALUE markets, except for a few location such as 30,000 INR per Sq Ft 20,000 Prithviraj Road, Aurangzeb Road, where rates CAPITAL VALUE 10,000 remained stable. 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 • The Delhi state cabinet has hiked the circle Golf Links, Jor Bagh, Sunder Nagar Prithviraj Road, Aurangzeb Road Chanakya Puri Shanti Niketan, Westend rates for the second time this year in Delhi. Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh The circle rate hike was highest in category Greater Kailash I & II, South Extension Anand Niketan, Vasant Vihar ‘A’ (Anand Niketan, Bhikaji Cama Place, Friends Colony, Maharani Bagh, Nehru Place etc.) at 250% while in B (Defence Colony, 4Q 2011 PREMIUM RESIDENTIAL average COLLIERS RESIDEX 4Q 2011 - DELHI Greater Kailash, Green Park, Hauz Khas etc.), RENTAL VALUE C (Civil Lines, East of Kailash, Kalkaji, Lajpat 150 Nagar etc.) and D (Anand Vihar, Dwarka, 140 Janakpuri,Karol Bagh etc.) category areas the Prithviraj Road, Aurangzeb Road 160 130 circle rates increased by 100%. Earlier this Anand Niketan, Vasant Vihar 140 120 Chanakya Puri 120 year in February, the circle rates increased up 100 80 110 60 100 to 100% in various categories. Greater 40 Kailash I 20 90 & II, South 0 Golf Links, Jor Bagh, Extension Sunder Nagar 80 70 60 Friends Colony, Shanti Niketan, Westend Maharani Bagh 50 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 Panchashila, Anandlok, Niti Bagh, SDARebase to 100 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Kings Court Greater Kailash- II DLF 1Q 2015 36,000 Queens Court Greater Kailash- II DLF 1Q 2015 26,000 Capital Greens Shivaji Marg DLF 2Q 2015 14,000 Winter Hills Dwarka Morh Umang Realtech 4Q 2013 7,000 Note: * As quoted by developerp. 4 | Colliers International Colliers International | p. 4

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