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Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
Residential Property Market Overview Nov 2012
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Residential Property Market Overview Nov 2012

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According to Colliers’s research findings, during the third quarter, most of residential markets across India have experienced a healthy increase in residential supply through new project launches in …

According to Colliers’s research findings, during the third quarter, most of residential markets across India have experienced a healthy increase in residential supply through new project launches in each city except for Delhi city. Rental levels trended upwards this quarter with 3-7% in Delhi, 4-9% in Chennai and 2-6% in Kolkatta. Gurgaon, Noida and Pune registered stable rental levels due to overall ample supply and steady demand with decrease levels registered in Bengaluru in the range of 3-9%. Going forward, rentals values are expected to see marginal increase in near term. For a more detailed analysis of the trends in each market kindly click here to download the report. I am sure you will find it to be an interesting read.

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  • 1. Residential PropertyMarket OverviewINDIAQUARTERLY UPDATE | NOVEMBER | 2012Accelerating success.
  • 2. 3Q 2012 | RESIDENTIALResearch reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia RESIDENTIAL market MACRO ECONOMIC OVERVIEW • India’s GDP growth has slowed to a 3 year low at 5.3% in the April-June quarter of the current fiscal. The wholesale price index reached 7.45% in October this year much above the RBI’s expected range. • As the inflation remained higher, the central bank did not provide any repo rate cut this quarter. However, in October 2012, the RBI did reduce the (CRR) Cash Reserve Ratio by 25 basis points to induce immediate liquidity in the market in its mid-year policy review. Earlier, in July 2012, the RBI also reduced its SLR (Statutory Liquidity Requirement) by 1%. • Foreign direct investment (FDI) in India was around $1.76 billion in July 2012. Sectors which ECONOMIC BAROMETER received large FDI inflows were Services, Pharmaceuticals, Construction and Power. Oct-11 Oct-12 • During this festive season the Indian banking sector offered cheaper home loans rates and lower processing fee to boost the sagging housing market across the country. For example State Bank REPO RATE 8.50% 8.00% of India reduced its processing fee by half across all loans volumes till 31 December 2012. Similarly, Punjab National Bank offered full waiver on processing fee till Nov 2012. Other banks REVERSE REPO RATE 7.50% 7.00% like ICICI, Federal Bank and Bank of Baroda are providing concessional interest rates during this CRR 6.00% 4.25% season. INFLATION 9.87% 7.45% • The Finance Minister has announced a slew of reform measures such as diesel price hike, cap 1 on the number of subsidised cooking gas cylinders per family, liberalising foreign holding norms Home Loan Rate 10.00% 10.00% in aviation, multi-brand retail, non-news broadcasting and power exchanges sectors, and divesting its stake in five companies. However, most of these reform measures faced strong opposition and implementation of these measures is still uncertain.Return on Alternative Investments ECONOMIC INDICATORS Oct-11 Oct-12 YoY % Change 12.0 11.0 Gold 26,887 30,961 15.15% 10.0 SILVER 53,371 59,921 12.27% 9.0 8.0 2 Fixed Deposit 8.25% 8.50% 3.03% 7.0 EQUITY 17,025 18,713 9.92% 6.0 5.0 REALTY INDEX 1,836 1,879 2.36% 4.0 3.0 2.0 In Percentage 1.0 1 SBI Home Loan Rate for Loan Amount upto INR 30 Lakhs. 2 0.0 SBI Fixed Deposit rate for a period of more than one year and Feb ‘08 Apr ‘08 Jun ‘08 Aug‘08 Oct‘08 Dec ‘08 Feb ‘09 Apr ‘09 Jun ‘09 Augt‘09 Oct ‘09 Dec ‘09 Feb ‘10 Apr ‘10 Jun ‘10 Aug‘10 Oct‘10 Dec ‘10 Feb ‘11 Apr ‘11 Jun ‘11 Aug ‘11 Oct ‘11 Dec ‘11 Feb‘12 Apr ‘12 Jun ‘12 AUg ‘12 Oct ‘12 amount less than INR 1 Crore (-1.0) Repo Rate Reverse Repo Rate Cash Reserve Ratio Wholesale Price Index Source: Colliers International India Researchwww.colliers.com
  • 3. INDIA | 3q 2012 | residential MUMBAI 3Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • During 3Q 2012, Mumbai’s residential market witnessed the launch of several new 70,000 60,000 projects, such as “New Vinay” by kabra & 50,000 Associates at Santacruz; “Crescent Bay by 40,000 L&T at Parel; "Venezia” and a new tower in 30,000 “New Cuffe Parade” by Lodha Group at Parel 20,000 INR per sq ft 10,000 and Wadala, respectively. All of these projects 0 were priced in the range of INR 16,000 per sq Khar Malabar Hill, Altamount Road, Carmichael Road Breach Candy, Napeansea Road, Peddar Road Colaba, Cuffe Parade Worli Prabhadevi Bandra Santacruz Juhu Andheri Powai ft to INR 20,000 per sq ft. • During the last 2 quarters, construction activity remained slow and no new residential projects/phases of projects completed in Mumbai. MUMBAI • Capital values in the western and central parts CAPITAL VALUE TRENDS of Mumbai increased in the range of 1-2% CITY RESIDENTIAL BAROMETER QoQ. However, in south-central locations, 75,000 such as Malabar Hill, Altamount Road, 65,000 2Q 2012 3Q 2012 Carmichael Road, Breach Candy, Napeansea 55,000 45,000 Road, Peddar Road, Colaba and Cuffe Parade, 35,000 RENTAL VALUE and central locations, such as Powai, capital 25,000 INR per sq ft values remained stable. 15,000 CAPITAL VALUE 5,000 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 • The rental values of premium residential properties remained stable in almost all of Breach Candy, Khar Colaba, Andheri Napeansea Road, Cuffe Parade the micro markets, except in those, such as Peddar Road Prabhadevi Bandra Worli Powai Malabar Hill, Santacruz Worli, Prabhadevi and Powai, where rents Juhu Altamount Road, Carmichael Road increased by 1%, and those micro markets in south-central locations, where rents declined by 1%. 3Q 2012 PREMIUM RESIDENTIAL AVerage COLLIERS RESIDEX 3Q 2012 - MUMBAI RENTAL VALUE • he State Government of Maharashtra passed T 150 the Maharashtra Housing Regulation and Malabar Hill, Altamount Road, Development Bill 2012. The aim of the bill Carmichael Road 140 Breach Candy, Powai 200 Napeansea Rd., 130 is to bring transparency to the realty sector 150 Peddar rd. 120 110 and empower end-users by protecting their Andheri 100 Colaba, Cuffe Parade 100 interests from the objectionable practices of 50 90 80 builders. 0 Worli Juhu 70 60 Santacruz Prabhadevi 50 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 Khar Bandra Rebase to 100 in 4Q 2008 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Crescent Bay Parel L&T 4Q 2017 17,500 New Cuffe Parade (New Tower) Wadala Lodha Group 4Q 2017 16,500 New Vinay Santacruz Kabra & Associates 4Q 2014 16,000 Venezia Parel Lodha Group 4Q 2017 19,980 Note: * Base selling price as quoted by developer Colliers International | p. 3K
  • 4. INDIA | 3Q 2012 | residential Delhi 3Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • During 3Q 2012, limited new supply was added to the city’s premium residential 100,000 90,000 inventory; only few small-scale redevelopment 80,000 residential projects were ready for possession 70,000 60,000 in locations such as Anand Niketan, Defence 50,000 40,000 Colony, Vasant Vihar and Shanti Niketan. 30,000 INR per Sq Ft 20,000 10,000 • No new premium residential project was 0 launched during this quarter. 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 • In 3Q 2012, capital values for premium residential properties increased marginally in almost all the micro markets, a few micro markets like Shanti Niketan, Anand Niketan,delhi Friends Colony and Greater Kailash, where capital value increased in the range of 3 to CAPITAL VALUE TRENDS 8% QoQ. This could be attributed to theCITY RESIDENTIAL BAROMETER new construction happening in these micro 100,000 markets, which in turn pegging up the capital 90,000 80,000 2Q 2012 3Q 2012 values. 70,000 60,000 50,000 RENTAL VALUE • Rental values for premium residential 40,000 30,000 INR per Sq Ft properties appreciated in the range of 3 to 7% 20,000 CAPITAL VALUE 10,000 QoQ across all the micro markets. The rentals 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 increase was primarily attributed to the limited supply of prime residential properties. Golf Links, Jor Bagh, Sunder Nagar Prithviraj Road, Aurangzeb Road Chanakya Puri Shanti Niketan, Westend Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh • In this quarter, the Delhi State Government Greater Kailash I & II, South Extension Anand Niketan, Vasant Vihar has started allocating the first batch of 500 low-cost flats in Bawana to the slum dwellers. The entire project consists of 14,000 low-cost 3Q 2012 PREMIUM RESIDENTIAL average COLLIERS RESIDEX 3Q 2012 - DELHI flats in eight slum clusters in West and South RENTAL VALUE Delhi, which are expected to be ready by the 150 end of 2012. Correspondingly, flats will be 140 allotted to the slum dwellers. Prithviraj Road, Aurangzeb Road 200 130 Anand Niketan, Vasant Vihar 160 Chanakya Puri 120 120 110 80 100 Greater 40 Kailash I 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 1Q2012 2Q2012 3Q2012 Panchashila, Anandlok, Niti Bagh, SDARebase to 100 in 4Q 2008 INR per Sq ft Per Month Ongoing Projects Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Capital Greens Shivaji Marg DLF Ltd. 2Q 2015 14,000 Castewood Okhla Indiabulls Ltd. 4Q 2013 12,800 Kings Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000 Metro Park Dwaraka Morh Umang Realtech 4Q 2014 8,500 Queens Court Greater Kailash- II DLF Ltd. 1Q 2015 30,000 Winter Hills Dwaraka Morh Umang Realtech 4Q 2013 7,000 Note: * Base selling price as quoted by developerp. 4 | Colliers International
  • 5. INDIA | 3q 2012 | residential gurgaon 3Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • In this quarter several premium projects were launched on Dwaraka Expressway in 18,000 Gurgaon, including: “Golf Avenue” by CHD 15,000 Developers at Sector 106, “The Summit” by 12,000 Godrej Properties at Sector 104, “Gurgaon 9,000 Greens” by EMAAR MGF and “Heritage Max” 6,000 INR per sq ft by Conscient, both of the projects were located 3,000 at Sector 102, and “Wind Chants” by Experion 0 Golf Course Road Sohna Road & Ext DLF Phase I Sushant Lok NH - 8 Developers at Sector 112. • Construction activities were slow and no premium residential projects/phases of the projects were ready for possession in Gurgaon during the quarter.gurgaon • Due to the festival season a number of CAPITAL VALUE TRENDS developers offered attractive offers likeCITY RESIDENTIAL BAROMETER discount on the base per sq.ft. price and 18,000 interest free period and free EMIs for 1 to 2 16,000 14,000 2Q 2012 3Q 2012 months. 12,000 10,000 8,000 RENTAL VALUE • n 3Q 2012, capital values for premium I 6,000 residential properties remained stable in INR per sq ft 4,000 CAPITAL VALUE 2,000 almost all the micro markets, barring a few 0 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 micro markets like “DLF Phase I” and Sohna Road and its extension road, an increase in the NH-8 Sohna Road & Ext range of 2 to 4% was registered on quarter on Golf Course Road Sushant Lok quarter basis. DLF Phase I • During the same quarter, rental values for premium residential properties remained 3Q 2012 PREMIUM RESIDENTIAL AVerage COLLIERS RESIDEX 3Q 2012 - GURGAON stable in all micro markets. This is due to RENTAL VALUE ample supply available in location like Golf 200 Course Road Extension and Sohna Road. Golf Course Road 180 80 160 • In this quarter the Punjab and Haryana High 60 140 120 Court has restrained the Haryana Urban 40 100 Development Authority (HUDA) from issuing NH-8 20 Sohna Road & Ext 80 new licenses to developers in Gurgaon unless 0 60 they give an undertaking that groundwater 40 20 would not be used for construction work. This 0 decision was comes after the water scarcity arose in the city this summer. 4Q2008 1Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 2Q2009 DLF Phase I Sushant LokRebase to 100 in 4Q 2008 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Golf Avenue Sector 106 CHD Developers 4Q 2015 5,450 Gurgaon Greens Sector 102 EMAAR MGF 4Q 2015 6,500 Heritage Max Sector 102 Conscient 4Q 2015 6,200 The Summit Sector 104 Godrej Properties 4Q 2015 5,350 Wind Chants Sector 112 Experion Developers 4Q 2016 6,500 Note: * Base selling price as quoted by developer Colliers International | p. 5
  • 6. INDIA | 3q 2012 | residential noida 3Q 2012 PREMIUM RESIDENTIAL AVERAGE CAPITAL VALUE • n 3Q 2012, several premium projects were I launched including “Ajnara Ambrosia” 10,000 by Ajnara Group at Sector 118; “Jaypee 8,000 Kasablanca” and “Jaypee Kristal Court”, both 6,000 by Jaypee Group at Sector 128; “Lotus Peak” by 3C Group at Sector 100; and “Prateek 4,000 Edifice” by Prateek Group at Sector 107. INR per Sq Ft 2,000 0 • Construction activity during this quarter Sector 44 Sector 50 Sector 61, 62., 63 Sector 92/93 Sector 28, 29, 30 remained slow, resulting in only a few projects being completed these includes “34 Pavilion Aristo” by Supertech Ltd at Sector 34. The project was priced at INR 6,650 - 7,000 per sq ft.noida • In order to boost sales during the festive CAPITAL VALUE TRENDS season many developers are offering likeCITY RESIDENTIAL BAROMETER LCD/LED TVs or a trip abroad or wavier of 12,000 additional charges over the basic sales price. 10,000 2Q 2012 3Q 2012 8,000 • During the same quarter, capital values in 6,000 RENTAL VALUE NOIDA appreciated in the range of 1 to 5% 4,000 QoQ in almost all of the micro-markets; INR per Sq Ft 2,000 CAPITAL VALUE however, Sector 44 remained stable. 0 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 • Rental values were stable in most of the micro Sector 61,62,63 Sector 50 markets but it is evident that values in more Sector 92 / 93 Sector 28,29,30 favorable locations such as Expressway and Sector 44 the Institutional sectors. continue to show an upward trend. Demand for newly completed apartments was strong as tenants have become more discerning and are looking for 3Q 2012 PREMIUM RESIDENTIAL AVERAGE COLLIERS RESIDEX 3Q 2012 - NOIDA RENTAL VALUE residential facilities with amenities such as 200 allocated parking, green areas, swimming Sector 44 180 pools, etc. 40 160 30 140 120 • In order to ease the traffic conditions in 20 100 NOIDA, the Authority (NOIDA) has planned Sector 28,29,30 10 Sector 50 80 eight flyovers, 13 foot over bridges, multi-level 0 60 car parking, 2 major roads and 6 elevated 40 20 roads. This will further improve the real estate 0 sentiment in the city. 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 Sector 92/93 Sector 61,62,63Rebase to 100 in 4Q 2008 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Ajnara Ambrosia Sector-118 Ajnara Group 4Q 2015 4,200 Jaypee Kasablanca Sector-128 Jaypee Group 1Q 2014 9,000 Jaypee Kristal Court Sector-128 Jaypee Group 1Q 2016 8,100 Lotus Peak Sector-100 3C Group 4Q 2014 7,750 Prateek Edifice Sector-107 Prateek Group 1Q 2015 6,500 Note: * Base selling price as quoted by developerp. 6 | Colliers International
  • 7. INDIA | 3q 2012 | residential chennai 3Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • During this quarter, a number of projects / phases of projects were completed, including 24,000 22,000 “Fair Deal” by Fair Deal Construction at 20,000 18,000 Adyar; “Tivoli” by Landmark Construction 16,000 14,000 at Mogappair; “Bhandari” by Sterling 12,000 10,000 Builders; “Hillside” by Bolliineni Developers 8,000 at Sithalapakkam; “Akarshana” by Royal 6,000 INR per sq ft 4,000 Splendour and “Step Stone” by Step Stone 2,000 0 Anna Nagar Adyar Beasant Nagar T Nagar Velachery Sholinganallur Siruseri/ Kazipattur Boat Club Nungambakkam Alwarpet / R A Puram Builders, both at Tambaram; “Atvarika” by Asvini Builders at Kelambakkam; “Home Dale” by ICIPL Projects; and “Golden County” by Hallmark Infrastructures, both at Maraimalai Nagar; “Summit” by Chaitanya at Shastri Nagar; and “Varuna” by Radiance Realty atchennai Alwarpet. CAPITAL VALUE TRENDS • In 3Q 2012, the residential real estate marketCITY RESIDENTIAL BAROMETER remained active and several new projects were 25,000 launched during this festive season. Most of 21,000 2Q 2012 3Q 2012 these projects were launched in the price 17,000 band of INR 10,000 - 14,000 per sq.ft., except 13,000 RENTAL VALUE few projects like “Space Aura” and “ Auburn” 9,000 INR per sq ft which were laucnhed at a price of INR 3,750 5,000 CAPITAL VALUE and INR 7,000 per sq.ft. respectively. 1000 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 • In this quarter, some developers offered Boat Club Alwarpet / R A Puram T Nagar waivers of pre-EMI interest during the project Sholinganallur Siruseri/ Kazipattur Beasant Nagar Nugambakkam Adyar implementation stage. This was part of their Velachery Anna Nagar strategic alliance with financial institutions. • In 3Q 2012, capital values for premium residential properties appreciated in the range 3Q 2012 PREMIUM RESIDENTIAL AVERAGE COLLIERS RESIDEX 3Q 2012 - CHENNAI of 3 to 7% in almost all micro-markets . This RENTAL VALUE is due to new projects, being launched at a 180 160 higher price than the prevailing market rate. 75 Boat Club Siruseri/ Kazipattur Nungambakkam 140 60 • During the same quarter, rental values for 45 120 100 premium residential properties appreciated Sholinganallur 30 Anna Nagar 80 in the range of 4 to 9% in almost all micro- 15 0 60 markets, barring Nungambakkam, Anna 40 Nagar, Adyar, Velachery and Sholinganallur Velachery Adyar 20 where rents remained stable. 2Q2008 4Q2008 1Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2008 3Q2012 1Q2008 2Q2009 Alwarpet / R A Puram Beasant Nagar T NagarRebase to 100 in 4Q 2008 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Atlantis Nelson Manickam Road Ramky Wavoo 4Q 2013 12,500 Auburn Perungudi, OMR Casa Grande 1Q 2014 7,000 Prince Courtyard Poonamallee High Road Price Foundations 1Q 2014 14,000 Quadrant Adyar TVH 2Q 2014 13,500 - 14,000 Space Aura Navalur, OMR Evocon 4Q 2013 3,750 Rajeshwari Founda- Tropicana Residences Kanathur, East Coast Road 2Q 2014 10,500 tions Note: * Base selling price as quoted by developer Colliers International | p. 7
  • 8. INDIA | 3q 2012 | residential BENGALURU (BANGALORE) 3Q 2012 PREMIUM RESIDENTIAL Average CAPITAL VALUE • In 3Q 2012, several premium projects were launched including “Bangalore West One” by 22,000 20,000 Phoenix Group at Rajaji Nagar; “Prestige Misty 18,000 16,000 Waters” and “Prestige Ferns Residency” by 14,000 Prestige Construction at Hebbal and Haralur 12,000 10,000 Road, respectively; “Mantri Harmony” by 8,000 Mantri Developers at Kanakpura Road; and 6,000 INR per Sq Ft 4,000 “East Parade” by Jains Heights at Old Madras 2,000 0 Road. Most of these projects are priced in the Jayanagar Indiranagar Central Cooke Town Palace Orchard Airport Road Bannerghatta Road Koramangala Whitefield (Appts) Yelahanka range of INR4,500 to 5,500 per sq ft. • During the same quarter, a number of projects / part of the projects were completed including “Salarpuria Greenage”bengaluru by Salarpuria Developers at Bomannahalli; “Golden Grand” by Golden Gate Properties at CAPITAL VALUE TRENDS Tumkur Road; “Arun Patios” by Arun ShelterCITY RESIDENTIAL BAROMETER at Yelahanka; “Windmills of your Mind” by 25,000 Total Environment; “Park View Apartment” by 20,000 2Q 2012 3Q 2012 Parkway Developers; and “Rakesh Heights” 15,000 by Rakesh Developers, all of which are located 10,000 RENTAL VALUE at Whitefield. INR per Sq Ft 5,000 2,000 CAPITAL VALUE 0 • Capital values in Central, Palace Orchard, 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 Bannerghatta Road and Whitefield appreciated Central Cooke Town Jayanagar in the range of 2 to 6%; however, at a few Indiranagar Airport Road Bannerghatta Road micro-markets like “Cooke Town”, “Airport Yelahanka Whitefield Palace Orchard Koramangala Road” and “Yelahanka”, values declined in the range of 3 to 8% QoQ. The rest of the micro- markets remained stable. 3Q 2012 PREMIUM RESIDENTIAL average COLLIERS RESIDEX 3Q 2012 - BENGALURU • On the contrary, rents declined in the range of RENTAL VALUE 3 to 9% in almost all micro-markets, except 140 for Central, Airport Road, Bannerghatta Road 130 and Yelahanka, which remained stable. Central 80 Yelahanka Cooke Town 120 60 110 • In this quarter, The National Highways 40 Whitefield 100 Authority of India (NHAI) and the State Public (Appts) 20 Jayanagar 90 Works Department (PWD) has initiated the 0 80 Satellite Town Ring Road (STRR). With the Koramangala Palace Orchard 70 improvement in connectivity the project will 60 further boost the real estate activities in these Airport Road Bannerghatta Road locations in the near future. 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 IndiranagarRebase to 100 in 4Q 2008 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Bangalore West One Rajaji Nagar Phoenix 4Q 2015 8,500 East Parade Old Madras Road Jains Heights 4Q 2015 4,950 Mantri Harmony Kanakpura Road Mantri Developers 4Q 2015 4,490 Prestige Ferns Residency Haralur Road Prestige Constructions 4Q 2015 4,550 Prestige Misty Waters Hebbal Prestige Constructions 4Q 2015 5,500 Note: * Base selling price as quoted by developerp. 8 | Colliers International
  • 9. INDIA | 3Q 2012 | residential KOlkata 3Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • n 3Q 2012, the projects/phases of projects I that were completed include “Fortune 14,000 12,000 Township - Phase II” by Fortune Realty at 10,000 Barasat and “Merlin Cambridge” and “Merlin 8,000 Trinayoni” by Merlin Group at Prince Anwar 6,000 Saha Road and Behala, respectively. “Mayfair 4,000 Palms” by Mayfair Group at Harinavi and INR per sq ft 2,000 “Meena Residency” by GM Group at Rajarhat 0 were also completed. Bhawanipur PA Shah Road Tollygunge Alipore Behela Loudon Street Ballygunge Salt Lake EM Bypass VIP Road New Town Rajarhat • During the quarter, a number of new projects were launched including “Astitva” by MCK PGE Projects at Kankurgachi, “Magnolia Skyview” by Magnolia Infrastructure at Rajarhat”, Avanikolkata Estates” by Avani Group at EM Bypass, “Ideal Grand” and “Ideal Aqua view” by Ideal Group CAPITAL VALUE TRENDS at Sector 5 and “Panchasheel Vatika” by MKCITY RESIDENTIAL BAROMETER Group at Birati. All of these projects were 14,000 launched in the price range of INR 5,000- 12,000 2Q 2012 3Q 2012 9,500 per sq ft, except for “Magnolia Skyview” 10,000 and “Panchasheel Vatika”, which were priced 8,000 RENTAL VALUE at INR 2,500 per sq ft. 6,000 4,000 INR per sq ft 2,000 CAPITAL VALUE • During the quarter, a healthy absorption rate 0 for residential developments was witnessed 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 across Kolkata. On a quarterly basis, capital Alipore Tollygunge Bhawanipur values appreciated in the range of 4-7% in Behela VIP Road P A Shah Road New Town - Rajarhat EM Bypass Salt Lake almost every micro market. However, micro Ballygunge Loudon Road markets, such as Behela, Salt Lake and New Town – Rajarhat, remained stable. • Following the trend of capital values, rents 3Q 2012 PREMIUM RESIDENTIAL AVerage COLLIERS RESIDEX 3Q 2012 - KOLKATA appreciated in the range of 2-6% in almost RENTAL VALUE 150 every micro market, except in a few locations, 140 such as Behela, Salt Lake and V.I.P Road, Bhawanipur where rents remained stable. New Town - Rajarhat 40 PA Shah Road 130 120 30 • The Kolkata Municipal Corporation (KMC) 110 VIP Road 20 Tollygunge 100 90 has mandated that the groundwater of all 10 proposed building sites be tested for arsenic 0 80 EM Bypass Alipore 70 before the building plans are submitted. If the 60 50 test results are positive, KMC will not allow Salt Lake Behela the project to proceed. This rule applies to 4Q2008 1Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 2Q2009 Ballygunge housing projects on the EM Bypass, Dum Loudon StreetRebase to 100 in 4Q 2008 INR per Sq ft Per Month Dum, Cossipore, Behala, Jadavpur and parts of Tollygunge. NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Astitva Kankurgachi MCK PGE Projects 4Q 2014 9,500 Avani Estates EM Bypass Avani Group 4Q 2014 5,040 Ideal Aqua view Salt Lake, Sector 5 Ideal Group 4Q 2015 3,800 Ideal Grand Howrah Ideal Group 4Q 2015 6,000 Magnolia Skyview Rajarhat Magnolia Infrastructure 4Q 2015 2,500 Mani Imperial Ultadanga Mani Group 4Q 2014 8,750 Note: * Base selling price as quoted by developer Colliers International | p. 9
  • 10. INDIA | 3q 2012 | residential PUNE 3Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • In 3Q 2012, several premium projects were 10,000 launched in locations like Kalyani Nagar, Baner, Hadapsar, Bavdhan, NIBM, Wakad, Hinjewadi, 8,000 Wagholi and Taleagon. New launches are 6,000 priced between INR 3,000-5,000 per sq. ft. 4,000 for projects located in North (East and West) and West areas of Pune; INR 4,300 – 5,100 INR per sq ft 2,000 per sq. ft. for projects located within South 0 area; and a prime rate of INR 11,000 per sq. Bhawanipur Magarpatta/Hadapsar Kalyani Nagar/Vi- man Nagar/Kharadi Deccan/Camp/ Boat Club Baner/Hinjewadi/ Wakad/Pashan Wajre NIBM/Undri/Kondhwa Pimpri/Chinchwad/ Chakan Kothrud/Bavdhan/ ft. for a premium project located along Kalyani Nagar. • In this quarter, construction activities picked up from previous quarter enabling few readypune possession buildings within residential projects and townships located in Wakad, Aundh and CAPITAL VALUE TRENDS Baner with a range of quoted prices betweenCITY RESIDENTIAL BAROMETER INR 5,200 – 6,000 per sq. ft. 10,000 9,000 8,000 2Q 2012 3Q 2012 • Capital values in Baner Hinjewadi, Wakad, 7,000 Kothrud, Bavdhan and Warje have experienced 6,000 RENTAL VALUE a marginal increase of 1-2% from previous 5,000 4,000 INR per sq ft quarter. Parallel, areas such as Magarpatta, CAPITAL VALUE 3,000 Hadapsar, NIBM, Undri, Pimpri-Chinchwad 2,000 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 and Chakan have contributed with a marginal increase between 6-9% quarter on quarter. Kalyani Nagar/Viman Nagar/Kharadi Deccan/Camp/Boat Club/Central Pune This change is attributed mainly to steady Magarpatta/Hadpsar Baner/Hinjewadi/Wakad/Pashan/Balewadi Kothrud/Bavdhan/Wajre NIBM/Undri/Kondhwa demand and fast developing areas particularly within North and South. Capital values remained stable in all other micro markets in Pune. 3Q 2012 PREMIUM RESIDENTIAL AVerage COLLIERS RESIDEX 2Q 2012 - PUNE RENTAL VALUE • During 3Q 2012, rental values remained stable 140 in almost all the micro markets in Pune due to 130 stable demand. Kalyani Nagar/Viman Nagar/Kharadi 30 25 120 Pimpri/Chinchwad/Chakan • Reliance Infrastructure Ltd has got approval Deccan/Camp/Boat Club 15 110 100 from the National Highway Authorities of 10 5 90 India (NHAI) to improve the 140-km stretch 0 80 of Pune-Satara highway (from Dehru Rd in NIBM/Undri Magarpatta/ Hadapsar Pune to Shindewadi in Satara) by way of /Kondhwa 70 60 construction of 13 flyovers; as 29 vehicular and 16 pedestrian underpasses and 3 major 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 Kothrud/Bavdhan/Wajre Baner/Hinjewadi/Wakad/PashanRebase to 100 in 4Q 2008 bridges (2 in Satara and 1 in Pune). INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Alkasa Mohammadwadi Majestique & Mantra 3Q 2014 3,400 Alpine Aura Moshi Alpine Homes 4Q 2014 3,000 GPL Sankalp Audumbar Warje 4Q 2014 5,000 Associates Blue Ridge Phase-2 Tathawade Paranjape Schemes 4Q 2016 5,800 Citron Wagholi Vascon Engineers Ltd 4Q 2015 3,100 Ela The Earth Hadapsar Vascon Engineers Ltd 4Q 2013 4,650 Note: * Base selling price as quoted by developerp. 10 | Colliers International
  • 11. INDIA | 3q 2012 | residential | submarketsResidential SUBMARKETSMumbaiThe 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.DelhiThe prime residential areas in Delhi are in the South region and comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan and Central Delhilocations. These areas enjoy proximity to embassies, the airport and central commercial areas - Connaught Place.GurgaonThe 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.NOIDANOIDA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and Taj Express Highway.ChennaiThe 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 aremainly concentrated along the CBD, and Eastern and South precincts of the city. Recently, Northern Bengaluru has also witnessed a spree of realtyactivity facilitated by the new International Airport at Devanhalli.KolkataThe 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.PuneThe 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 ResidexColliers Residex represents the average secondary sale prices of high end properties. Residex has been derived by rebasing the capital values as100 as on 1Q 2008. Colliers International | p. 11
  • 12. INDIA | 3Q 2012Colliers International (India) provides property services to property Investors and Occupiers. Wedeliver customised service solutions utilising local and global knowledge in partnership with our 522 offices in 62 countries on 6 continentsclients via our property Investment and Occupier service lines. These service lines include - OfficeServices, Facility Management, Project Management, Residential Services, Investment Services United States: 147 Canada: 37 and Valuation & Advisory Services. Latin America: 19 www.colliers.com/india Asia Pacific: 201 EMEA: 118For national residential services related queries please contact: $1.8 billion in annual revenuePoonam Mahtani, National Director 2.55 billion square feet under managementResidential Services & Knowledge Systems Poonam.mahtani@colliers.com Over 12,300 + professionalsTel: +91 22 4050 4551 Mumbai : Vaibhav Kumar Vaibhav.kumar@colliers.com AUTHORS 31/A, 3rd floor, Film Center, 68, Tardeo Road, Mumbai, India - 400 034. Tel : +91 22 4050 4500, fax : +91 22 2351 4272 Amit Oberoi MRICS National Director, Valuation & Advisory; ResearchDelhi NCR : Ajay Rakheja, Office Director Email: Amit.oberoi@colliers.com Ajay.rakheja@colliers.com Surabhi Arora MRICSNew Delhi : tatesman House, 4th Floor, Barakhamba Road, Connaught Place, S Associate Director, Research New Delhi, India - 110 001 Email: Surabhi.arora@colliers.com Tel : +91 11 3044 6423, fax : +91 11 3044 6500 Sachin SharmaGurgaon : Technopolis Building, 1st floor, DLF Golf Course Main Road, Sector 54, Gurgaon, Assistant Manager, Research India - 122 002 Email: Sachin.sharma@colliers.com Tel : +91 124 456 7500, fax : +91 124 456 7502 Heliana ManoBengaluru : Goutam Chakraborthy, Office Director Assistant Manager, Research Goutam.chakraborthy@colliers.com Email: Heliana.mano@colliers.com Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru, India - 560 042 For general queries and feedback : India.Research@colliers.com Tel : +91 80 4079 5500, fax : +91 80 4112 3131 Tel: +91 124 456 7580Pune : 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 relatedChennai : Kaushik Reddy, Office Director to information herein should be directed to the Research Department at the number indicated above. This document Kaushik.reddy@colliers.com has been prepared by Colliers International for advertising Heavitree Complex, Unit 1C, 1st floor, 23, Spurtank Road, Chetpet, Chennai, and general information only. Colliers International makes no guarantees, representations or warranties of any kind, India - 600 031 expressed or implied, regarding the information including, Tel : +91 44 2836 1064, fax : +91 44 2836 1377 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.Kolkata : Soumya Mukherjee , Office Director Colliers International excludes unequivocally all inferred Soumya.mukherjee@colliers.com or implied terms, conditions and warranties arising out Infinity Business Centre, Infinity Benchmark, Room No 13, Level 18, Plot G - 1, of this document and excludes all liability for loss and damages arising there from. 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 oFFICE iNDIA bUDGET 2012-13MID-YEAR 2012 | RETAIL SECOND HALF 2011 | OFFICE Q1 2012 | RESEARCH GLOBAL OFFICE A SNEAK PREVIEW HIGHLIGHTSGLOBALHIGHLIGHTS UNION BUDGET 2012 -13 Record Rents for Top Retail Corridors; Global Global Office Demand Growth Budget Highlights | Real Estate Slowdown Impacts Momentum Elsewhere Slow and Steady MARKET REACTION TO BUDGET ANN T. NATUNEWICZ Manager | Retail Research | USA JAMES COOK Director of Research | USA Company Change (%) Finance Minister Pranab Mukherjee started his budget speech 2012-13 in the BSE SENSEX -1.19 backdrop of challenging macroeconomic scenario. The finance minister projects Colliers’ 2012 Global Retail Streets survey found that of 129 locations tracked, 51 posted higher year Global Office Trend Forecast over year average rental rates, 49 were flat, and 24 were down (5 lacked comparable data). Global office vacancies will continue their decline, due to steady demand and low levels of new construction in North Realty Index -1.26 the economy to grow by 7.6% in the next fiscal up from 6.9% in 2011-12. HeTOP 10 GLOBAL RETAIL STREETS* America and Europe. Anant Raj Inds -6.04 mentioned that due to adverse global economic sentiments there has been a(USD PER SQUARE FOOT PER YEAR) Retailers entering new markets—both developed and developing—continue to hedge risk by targeting GLOBAL CAPITALIZATION RATES / The “flight to quality” trend will continue in many major markets, with occupiers trading up to higher-quality space or a D B Realty -2.02 the same one or two premier locations, generating heated competition and outsized rental rate growth better location as their leases expire. slowdown in the Indian Economy but the fact is India still remains among the ANNUAL PRIME YIELDS: 10 LOWEST CITIES RENT CHANGE in a handful of space-constrained corridors. DLF 0.15 front runners in the economic growth in any cross country comparison. The STREET/PRECINCT (USD)** (%) The European sovereign debt crisis will likely push the Eurozone into a mild recession in early 2012. This contraction Companies with the most ambitious long-term expansion plans remain focused on emerging markets CBD CAP RATE (%) will be felt most profoundly in a handful of commercial property markets within the most troubled nations. Godrej Properties -2.82 budget aims at faster, sustainable and more inclusive growth across sectors New York – Fifth Avenue ��,��� ��.� MARKET with rapidly growing middle-class populations, but recently institutional capital has pulled back (Ranked by DEC JUNE DEC Economic prospects in the Eurozone have slightly reduced overall positive global expectations for market performance in HDIL -5.21 emphasizing on five focus areas including revival of domestic consumption, Hong Kong – Queens ��,��� ��.� somewhat to favor core markets and investments. Dec 2011) 2011 2011 2010 2012. We expect continuing modest demand for office space, with most cities seeing a drop in vacancy rates. But global Hubtown Ltd. -4.13 rapid revival of high growth in private investment, removal of supply bottlenecks, Road Central, Central (tie) averages do not speak to the nuances of individual markets, and—while we expect positive absorption due to business Taipei �.�� �.�� �.�� While economic and political turmoil did affect rental rates in headline-generating markets (such growth and expansion in the United States, China and Australia—some Eurozone countries may see negative absorption Indiabulls Real Estate -1.95 addressing malnutrition in 200 high burden districts and expedite improvement Hong Kong – ��,��� ��.� Hong Kong �.�� �.�� �.�� Canton Road (tie) as Cairo and Athens), high streets with strong fundamentals remained remarkably resilient, suggest- and increased vacancy as the region enters a mild recession. Mahindra Lifespaces -0.72 in delivery system, governance and transparency. ing, at least for now, some separation between macroeconomic issues and underlying real Vienna �.�� �.�� �.�� London – Old Bond St.*** ��,��� ��.� Latin America Boasts the Tightest Office Markets each has shown apparent decline in rents between June Orbit Corp. -3.37 estate fundamentals. London – West End �.�� �.�� �.�� Some of the world’s lowest office vacancy rates are found and December of 2011, when quoted in U.S. dollars. Paris – Avenue des*** ��,��� flat Parsvnath Developers -4.04 From a real estate perspective, the budget remained silent on most of the major Champs-Élysées Zurich �.�� �.�� �.�� in Latin American cities. Santiago, Chile; Rio de Janeiro, Substantial declines, in fact: led by a $10.87 USD drop in Since we conducted our survey, however, weakening consumer sentiment among affluent shoppers Brazil; São Paulo, Brazil; and Lima, Peru all have vacancy Parisian Class A rents. Peninsula Land -3.18 issues including status of STPIs (Software Technology Parks of India), Real Hong Kong - ��,��� ��.� Singapore �.�� �.�� �.�� Estate Regulatory Bill, Land Bill etc. however, it mentioned that efforts are on to has already begun to impact retailers’ revenues and could hinder landlords’ near-term ability to rates below three percent, resulting in a market that Causeway Bay �.�� �.�� �.�� But how significant are these figures? The change in Phoenix Mills -2.65 raise rents, suggesting flattening growth rates for the coming year. Geneva strongly favors landlords, prompts new construction and London and Paris rents is due to the strengthening dollar arrive at a political consensus on the issue of allowing 51% Foreign Direct New York – ���� ��.� Beijing �.�� �.�� �.�� might squeeze some tenants that desire to expand. For the Sobha Developers 3.04 Madison Avenue most part, we expect the strength of these markets to relative to the euro and pound sterling. In local currency, Investment (FDI) in multi-brand retail. Paris �.�� �.�� �.�� prime rents in these markets are holding ground. Although Sunteck Realty -1.13 This spring proved to be a tricky time to conduct global benchmarking, as market sentiment has persist. While decreases in European demand for its Zurich – Bahnhofstrasse ���� flat Munich �.�� �.�� �.�� commodities will likely hurt Latin America, this will be smaller, the decline in Hong Kong of $7.56 USD ($5.10 HKD) Unitech -1.68 THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATE deteriorated markedly since April. During the past year, virtually every entity making a forecast— per square foot may be a more important indicator of things SECTOR ARE AS FOLLOWS: Residential Property Milan – ���� (�.�) tempered by continued demand from China. In São Paolo, including Colliers in our 2012 U.S. Retail Outlook—included a caveat related to not-yet-quantifiable global Tokyo �.�� �.�� �.�� Source: www.bseindia.com | Mar 16, 2012 OFFICE Via Monte Napoleone heightened demand has spurred the highest rates of new to come, as demand from the banking and financial sector fallout from Europe’s fiscal issues. As the past few months have illustrated, the time to face Eurozone development in the region, which will eventually put continue to weaken. - External Commercial Borrowings (ECB) for low cost affordable housing Sydney – Pitt Street Mall ���� (��.�) issues has finally arrived, spawning a new wave of financial uncertainty. downward pressure on asking rents. EMEA and Asia Pacific Lead Global Construction projects. Impact: Real estate companies developing large affordable housing Source: Colliers International GLOBAL OFFICE OCCUPANCY COSTS: A significant percentage of the office space under * selected cities More than two years post-recession, though, results from our annual survey of High Street rents TOP 10 CITIES Select Asia Pacific Markets See Big Vacancy Drops projects with large fund requirements will benefit the most from the easing of ** exchange rate as of March 31, 2012 illustrate that the world’s priciest retail corridors continue to attract the most sought-after tenants at lofty The global trend in dropping vacancy rates should be evi- construction is in Europe, the Middle East and Africa Market Overview *** Zone A rents dent in Asia and continue through 2012. Markets that saw (EMEA), and much of that is occurring in Moscow and external commercial borrowing (ECB) norms as interest rate charged is lower in rental rates. Eight of Colliers’ top ten Global Retail Streets in 2011 made the list again this year. The big PROPERTY MARKET OVERVIEW CLASS A / NET RENT (USD/SQ FT) story, however, lies with the explosive year over year rental growth achieved in a handful of markets. Six a drop in vacancy in the second half of 2011 outnumbered Dubai. While both of these markets should expect strong case of external borrowings in comparison to rates charged by domestic MARKET by a two-to-one margin those where vacancy increased. economic growth in 2012, the fact that Dubai—with a of our Top 10 grew at double-digit levels year over year in local currency units, five of them by more than (Ranked by DEC JUNE DEC vacancy rate of 50 percent—is constructing at such a pace institutions.REGIONAL RETAIL RESEARCH CONTACTS 20%. ASIA PACIFIC Dec 2011) 2011 2011 2010 Of the world’s most populous markets, those with the most leads us to expect that supply will continue to outpaceAMERICAS significant declines in six-month vacancy rates were nearly demand in that market. > Ann T. Natunewicz At a regional level, streets in areas that entered 2007-08 better-positioned economically—Australia, Hong Kong ���.�� ���.�� ���.�� all in the Asia Pacific region. Chengdu, propelled by its - Increase in provision under Rural Housing Fund to INR 4,000 crore from the strong manufacturing sector, saw its vacancy rate drop by The other two top markets for office construction are in the Ann.Natunewicz@colliers.com Canada, parts of Eastern Europe—had a higher percentage of this years flat-to-higher rents than those slower to emerge from the recession. We will be watching these areas closely. Even as they represent INDIA INDIA London – West End ���.�� ���.�� ���.�� 7.8 percent in the period, and Shanghai saw a 3.2 percent Asia Pacific region. Guangzhou—China’s leading existing INR 3,000 crore.Impact: It will provide housing finance to targeted OFFICE MARKET OVERVIEWEUROPE/MIDDLE EAST/AFRICA Paris ��.�� ���.�� ��.�� commercial port city—and Tokyo have 19.6 and 15.6 million groups in rural areas at competitive rates. drop in vacancy. > Zuzanna Baranowska some of the most attractive destinations for expansion-minded companies and yield-seeking investors, Rio de Janeiro ��.�� ��.�� ��.�� square feet under construction respectively. Asian economic Zuzanna.Baranowska@colliers.com they too are vulnerable to softening consumer demand and, for those with reliable data, encroachment of Two other large Asian markets saw vacancy rates drop by growth rates will remain strong in the coming months, with e-commerce. QUARTERLY UPDATE | AUGUST | 2012 Moscow ��.�� ��.�� ��.�� 1.5 percent or more: Jakarta, which has also seen China and India leading the pack. Rents are on the rise in - Extension of the existing scheme of interest subvention of 1% on housingASIA QUARTERLY UPDATE | OCTOBER | 2012 London – City ��.�� ��.�� ��.�� sustained growth in CBD rental rates and renewed global most cities in the region. However, dropping rents in Seoul > Simon Lo investor interest; and Singapore, where occupancies are and Hong Kong are a potential indicator of global economic loans up to INR 15 lakh where the cost of the house does not exceed INR 25 Simon.Lo@colliers.com This report contains two parts. The first summarizes the results of our annual Global Retail Streets Perth ��.�� ��.�� ��.�� survey, conducted in April 2012. The second incorporates content from Colliers’ brokerage and research expected to stabilize. uncertainty. In Tokyo, where new supply has been increasing lakh for another year. Impact: This will boost the affordable housing segment Singapore ��.�� ��.�� ��.��AUSTRALIA/NEW ZEALAND > Nora Farren teams worldwide who contributed market operational metrics, nuanced commentary on retail conditions, 3Q 2012 Marquee Markets See Rent Decline for the past three years, we expect construction to peak and by providing cheaper loan to the end users. Geneva ��.�� ��.�� ��.�� begin to decline in the coming year. Nora.Farren@colliers.com and forward-looking opinions on what the next year will hold for consumers, landlords, and investors. While Hong Kong, London’s West End and Paris command São Paulo ��.�� ��.�� ��.�� the top three highest asking rents for Class A office space, Accelerating success. Accelerating success. P. 1 | COLLIERS INTERNATIONALwww.colliers.com Accelerating success. WWW.COLLIERS.COM www.colliers.com/india This book is printed on 100% Recyclable paper Accelerating success.

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