Residential PropertyMarket OverviewINDIAQUARTERLY UPDATE | MAY | 2012Accelerating success.
1Q 2012 | THE KNOWLEDGEResearch reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia RESIDENTIAL market  ...
THE KNOWLEDGE | 1q 2012 | residential | Mumbai                                                                            ...
THE KNOWLEDGE | 1Q 2012 | residential | delhi                                                                             ...
THE KNOWLEDGE | 1q 2011 | residential | gurgaon                                                                           ...
The knowledge report india residential property market overview 1 q 2012
The knowledge report india residential property market overview 1 q 2012
The knowledge report india residential property market overview 1 q 2012
The knowledge report india residential property market overview 1 q 2012
The knowledge report india residential property market overview 1 q 2012
The knowledge report india residential property market overview 1 q 2012
The knowledge report india residential property market overview 1 q 2012
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The knowledge report india residential property market overview 1 q 2012

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Colliers research has come up with its latest knowledge report India Residential Property Market Overview, May 2012. For more detailed information kindly download the report. You will surely find the report an interesting and informative read.

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The knowledge report india residential property market overview 1 q 2012

  1. 1. Residential PropertyMarket OverviewINDIAQUARTERLY UPDATE | MAY | 2012Accelerating success.
  2. 2. 1Q 2012 | THE KNOWLEDGEResearch reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia RESIDENTIAL market MACRO ECONOMIC OVERVIEW • During 4Q 2011 GDP grew at 6.9 % in real terms suggesting a moderation in growth in comparison to preceding two quarters. The finance minister presented India’s Union Budget 2012 -13 this quarter projecting a GDP growth rate of 7.6% for 2012-13. • The headline inflation figure moderated from 8.3% in December 2011 to 6.6 and 6.95% in January and February 2012, respectively. Keeping in view the moderation in inflation rate the Reserve Bank of India (RBI) reduced the CRR (Cash Reserve Ratio) by 50 basis points in January for the first time since one and a half year. A further reduction of 75 basis point was made in March 2012. The current CRR rate is 4.75%. ECONOMIC BAROMETER • The Budget remained silent on most of the major real estate related issues. It did however mentioned that efforts are on to arrive at a political consensus on the issue of allowing 51% Mar-11 Mar-12 Foreign Direct Investment (FDI) in multi-brand retailing. REPO RATE 6.50% 8.50% • The Budget aims to provide impetus to affordable housing by providing various incentives to both developers and end users. For example the External Commercial Borrowings (ECB) is allowed REVERSE REPO RATE 5.50% 7.50% for low cost housing projects which would help developers to raise debt at a lower rate. CRR 6.00% 4.75% • From an end user perspective, the budget provides few incentives including, Service tax INFLATION 9.68% 6.95% exemption for construction service related to residential dwelling and low cost mass housing up to an area of 60 sq mtr under the scheme of affordable housing. The existing scheme of interest 1 Home Loan Rate 10.25% 11.00% subvention of 1% for housing loans up to INRs 15 lakh (where the cost of the house does not exceed INR 25 lakhs), was extended by one more year.Return on Alternative Investments ECONOMIC INDICATORS Mar-11 Mar-12 YoY % 12.0 Change Gold 20,730 27,300 31.69% 10.0 SILVER 52,450 56,014 6.80% 8.0 2 Fixed Deposit 9.5% 9.25% -0.25% 6.0 EQUITY 18,167 17,675 -2.71% REALTY INDEX 2,054 1,821 -11.31% 4.0 2.0 In Percentage 1 2 SBI Home Loan Rate for Loan upto INR 50 Lakhs. 0.0 For a period of more than one year and amount below INR 1 Crore Jan ‘08 Apr ‘08 Jul ‘08 Oct‘08 Jan ‘09 Apr ‘09 Jul ‘09 Oct‘09 Jan ‘10 Apr ‘10 Jul ‘10 Oct‘10 Jan ‘11 Apr ‘11 Jul ‘11 Oct ‘11 Jan ‘12 (-2.0) Repo Rate Reverse Repo Rate Cash Reserve Ratio Wholesale Price Index Source: Colliers International India Researchwww.colliers.com
  3. 3. THE KNOWLEDGE | 1q 2012 | residential | Mumbai MUMBAI 1Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • his quarter several new residential projects T were launched in Mumbai including a 70,000 60,000 few premium residential projects such as 50,000 “Imperia” by Raheja Universal, and “ITC Glory” 40,000 and “Aquino” by Rohan Lifescapes. All of 30,000 these new launches were located in western 20,000 INR per sq ft 10,000 suburbs and were priced in the range of INR 0 22,000 to 32,500 per sq ft. Khar Malabar Hill, Altamount Road, Carmichael Road Breach Candy, Napeansea Road, Peddar Road Colaba, Cuffe Parade Worli Prabhadevi Bandra Santacruz Juhu Andheri Powai • Construction activities remained slow and no new supply was added to the prime residential stock in Mumbai. • Buyer’s sentiments remained cautious on theMUMBAI backdrop of the current economic scenario and fewer transactions were recorded during CAPITAL VALUE TRENDS the quarter.CITY RESIDENTIAL BAROMETER 75,000 • apital values for prime residential properties C 65,000 4Q 2011 1Q 2012 in western suburbs such as Bandra, 55,000 45,000 Santacruz, Andheri, Khar and Juhu recorded 35,000 RENTAL VALUE an increase in the range of 3 to 9%. On the 25,000 INR per sq ft contrary, properties located in South Central 15,000 CAPITAL VALUE locations observed downward pressure on 5,000 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 capital values and saw a marginal correction quarter-on-quarter. Breach Candy, Khar Colaba, Andheri Napeansea Road, Cuffe Parade Peddar Road Prabhadevi Bandra Worli Powai Malabar Hill, Santacruz • Due to steady demand for high-end rental Juhu Altamount Road, Carmichael Road premises, rental values for prime residential properties witnessed marginal increase in the range of 1 to 2% quarter-on-quarter in most 1Q 2012 PREMIUM RESIDENTIAL AVerage COLLIERS RESIDEX 1Q 2012 - MUMBAI of the micro-markets barring locations such RENTAL VALUE as Worli, Andheri, Juhu and Powai where 140 rental values remained stable on account of Malabar Hill, Altamount Road, ample supply. Carmichael Road 130 Breach Candy, Powai 200 Napeansea Rd., 120 Peddar rd. 150 110 Andheri 100 Colaba, Cuffe Parade 100 50 90 0 80 Juhu Prabhadevi 70 60 Santacruz Worli 50 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 Khar BandraRebase to 100 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Aquino Prabhadevi Rohan Lifescapes 4Q 2015 32,500 Imperia Lower Parel Raheja Universal 4Q 2016 23,000 ITC Glory Parel Rohan Lifescapes 4Q 2014 22,000 Kanakia Skywalk Malad East Kanakia Group 4Q 2016 9,500 Note: * As quoted by developerp. 3 | Colliers International Colliers International | p. 3
  4. 4. THE KNOWLEDGE | 1Q 2012 | residential | delhi Delhi 1Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • he new residential supply in the premium T segment remains restricted, as only a few 100,000 90,000 redevelopment projects were completed this 80,000 quarter. Similarly no new residential projects 70,000 60,000 were launched this quarter, except for a few 50,000 40,000 redevelopment projects undertaken by local 30,000 INR per Sq Ft developers. 20,000 10,000 0 • apital value of prime residential properties C 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 appreciated in the range of 5 to 10% across all the micro markets in 1Q 2012. However, buyers’ sentiments remained cautions due to prevailing uncertainties in economy.delhi • Demand for premium residential properties remained consistent in South Delhi’s much CAPITAL VALUE TRENDS sought after locations such as PrithvirajCITY RESIDENTIAL BAROMETER Road, Aurangzeb Road, Chanakya Puri, Golf 90,000 Links, Jor Bagh and Sunder Nagar, however, 80,000 70,000 4Q 2011 1Q 2012 in Shanti Niketan, Westend, Panchashila, 60,000 Anandlok, Niti Bagh, SDA, Friends Colony, 50,000 40,000 RENTAL VALUE Maharani Bagh, Greater Kailash I & II, South 30,000 INR per Sq Ft 20,000 Extension, Anand Niketan and Vasant Vihar CAPITAL VALUE 10,000 rents appreciated in the range of 2 to 9%. 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 • n order to facilitate smooth travel between I Golf Links, Jor Bagh, Sunder Nagar Prithviraj Road, Aurangzeb Road Chanakya Puri Shanti Niketan, Westend the two cities, Delhi and Gurgaon, the Delhi Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh Development Authority (DDA) has planned to Greater Kailash I & II, South Extension Anand Niketan, Vasant Vihar develop three Urban Extension Roads (UERs) connecting Dwarka to Palam Vihar, Najafgarh to Dhansa and Nelson Mandela Road to MG 1Q 2012 PREMIUM RESIDENTIAL average COLLIERS RESIDEX 1Q 2012 - DELHI Road. RENTAL VALUE 140 • he Delhi government has given its in- T 130 principle approval for developing a monorail Prithviraj Road, Aurangzeb Road 200 120 corridor of 10.8 kms in Trans-Yamuna area. Anand Niketan, Vasant Vihar 160 Chanakya Puri 110 This monorail line is expected to link between 120 80 100 Shastri Park metro station and Trilokpuri via Greater 40 90 Laxmi Nagar in East Delhi and will have 12 Kailash I & II, South 0 Golf Links, Jor Bagh, 80 Extension Sunder Nagar 70 stations. It is proposed to be functional by end 60 of 2017. 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 Panchashila, Anandlok, Niti Bagh, SDARebase to 100 INR per Sq ft Per Month Ongoing Projects Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Kings Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000 Queens Court Greater Kailash- II DLF Ltd. 1Q 2015 26,000 Capital Greens Shivaji Marg DLF Ltd. 2Q 2015 14,000 Winter Hills Dwarka Morh Umang Realtech 4Q 2013 7,000 Note: * As quoted by developerp. 4 | Colliers International
  5. 5. THE KNOWLEDGE | 1q 2011 | residential | gurgaon gurgaon 1Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • arious projects / phases of projects were V offered for possession during this quarter 15,000 including “DLF Belaire”, “DLF Park Place” 12,000 and “DLF Mangnolias” at Golf Course Road 9,000 developed by DLF Ltd and “Tatvam Villa” 6,000 developed by Vipul Ltd located at Sohna INR per sq ft Road. 3,000 0 Golf Course Road Sohna Road & Ext DLF Phase I Sushant Lok NH - 8 • n 1Q 2012, the projects launched included, I “Gurgaon Greens” by Emaar MGF, “Amstoria” by BPTP, “Centrum Park” by India Bulls Ltd, “Colour Coding” by 3C Universal, “Provence Estate” by Krrish Group and Imperia Esfera by Imperia Group. All of these projects weregurgaon located in the sectors adjoining the Dwarka Expressway and were launched in a price CAPITAL VALUE TRENDS range of INR 4,000-5,000 per sq ft.CITY RESIDENTIAL BAROMETER 18,000 • s compared to the previous quarter, capital A 16,000 14,000 4Q 2011 1Q 2012 values for prime residential properties 12,000 recorded an marginal increase in the range of 10,000 8,000 RENTAL VALUE 2 to 4% across all micro markets, barring a 6,000 few locations such as DLF Phase-1 and NH-8, INR per sq ft 4,000 CAPITAL VALUE 2,000 where capital values remained stable quarter- 0 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 on-quarter on the account of muted demand. NH-8 Sohna Road & Ext • ental values for prime residential properties R Golf Course Road Sushant Lok increased in the range of 2 to 9% quarter- DLF Phase I on-quarter in locations such as DLF Phase 1, Golf Course Road, Sohna Road & Extension and Sushant Lok due to increasing demand 1Q 2012 PREMIUM RESIDENTIAL AVerage COLLIERS RESIDEX 1Q 2012 - GURGAON from multinational corporations as well as RENTAL VALUE domestic companies. 150 • n a bid to improve infrastructure in the I Golf Course Road 140 80 130 newly-developing sectors on the Golf Course 60 120 110 Extension Road and Dwarka Expressway, the 40 100 State Government has allocated INR 1,394 NH-8 20 Sohna Road & Ext 90 crore for various infrastructure projects such 0 80 as strengthening roads and developing water 70 60 supply and sewage systems. 50 4Q2008 1Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2009 DLF Phase I Sushant LokRebase to 100 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Amstoria Sector 102 BPTP Ltd. 4Q 2015 11,000 India Bulls Real Estate Centrum Park Sector 110 4Q 2013 4,500 Ltd. Colour Coding Sector 89 3C Universal 4Q 2016 4,000 Gurgaon Greens Sector 102 Emaar MGF 4Q 2016 5,000 Imperia Esfera Sector 37 C Imperia Group 1Q 2015 3,500 Provence Estate Gurgaon-Faridabad Road Krrish Group 4Q 2015 6,750 Note: * As quoted by developer Colliers International | p. 5

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