This is our third edition of the flagship half yearly report - India Real Estate. It presents a comprehensive analysis of the residential and office market performance of the Chennai Region for the period between January–June 2015 (H1 2015).

1. CHENNAI
REAL
ESTATE
JANUARY TO JUNE 2015

2. CHENNAI
RESIDENTIAL
JANUARY TO JUNE 2015

3. RESIDENTIAL
MARKET
IN CONSOLIDATION
MODE
Will launches continue to spiral downward in Chennai?
How are the premium locations faring in Chennai currently?
Which is currently the healthiest residential market in South India?

4. NEW LAUNCHES DROP BY 20% Y-O-Y;
DEVELOPERS RESTRICT NEW LAUNCHES
16,832
8,015
11,377
7,318
9,102
14,020
10,424
10,212
10,343
9,091
4,208
4,354
4,407
4,528
4,532
3,900
4,100
4,300
4,500
4,700
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
INR/sqft
No.ofunits
Launches Absorption Wt. Avg. Price (RHS)

5. WEST CHENNAI
MOST AFFORDABLE

6. 77% OF NEW LAUNCHES BELOW
INR 2.5 MN IN WEST
INR
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
<2.5 mn 2.5-5 mn 5-7.5 mn 7.5-10 mn 10-20 mn 20-40 mn 80-150 mn
Central North South West

7. WEST CHENNAI
PERFORMS THE BEST
CLOSELY FOLLOWED
BY SOUTH

8. HOWEVER, NORTH CHENNAI
CONTINUES TO LANGUISH
5
6
7
8
9
10
11
5 6 7 8 9 10 11 12 13
AgeofInventory
QTS
Central North South West
CENTRAL
SOUTH
WEST
NORTH

9. PREMIUM MARKET
WITH RESIDENTIAL
UNITS OVER
INR 1.5 CRORE HIT
HARD BY SLOWDOWN

10. SUPPLY AND DEMAND AT LOWEST
LEVELS SINCE 2013, PRICE GROWTH
HOWEVER REMAINS STRONG526
213
151
420
138
596
398
342
375
147
10,206
11,308 11,448
13,279 13,495
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
0
100
200
300
400
500
600
700
2013 H1 2013 H2 2014 H1 2014 H2 2015 H1
INR/sqft
No.ofunits
Sum of New Launch Sum of Total Absorption Max of PricesLaunches Absorption Wt. Avg. Price (RHS)

11. SLACK IN MARKET
ENGULFS PREMIUM
SEGMENT;NEARLY 2
YEARS TO OFFLOAD
UNSOLD INVENTORY

12. PREMIUM SEGMENT FALLS VICTIM TO
MARKET MALAISE
0
1
2
3
4
5
6
7
8
9
Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
QTS
CHENNAI CITY
PREMIUM MARKET

13. SALES EXPECTED TO
SEE MARGINAL GROWTH
IN THE NEXT 6 MONTHS

14. OUTLOOK FOR THE NEXT 6 MONTHS
LAUNCHES
(UNITS)
SALES
(UNITS)
WEIGHTED
AVERAGE PRICE
(INR/SQ FT)
H2 2014 7,318 10,343 4,528
H2 2015 E 6,439 10.420 4,596
GROWTH -12% 1% 1.5%

15. HOW DOES CHENNAI
STAND COMPARED TO
OTHER CITIES

16. LAUNCHES- CHENNAI MAINTAINS
ITS POSITION
H1 2014 H1 2015
MUMBAI 35,512 18,887
NCR 35,500 11,360
BENGALURU 35,545 21,400
PUNE 16,883 12,762
CHENNAI 11,377 9,102
AHMEDABAD 9,021 8,062
KOLKATA 8,444 8,372
HYDERABAD 7,899 5,457

17. ABSORPTION- CHENNAI GOES UP AT
5TH POSITION IN SALES
H1 2014
MUMBAI 31,210
NCR 28,500
BENGALURU 27,256
PUNE 14,719
AHMEDABAD 10,472
CHENNAI 10,315
HYDERABAD 7,282
KOLKATA 6,390
H1 2015
MUMBAI 28,446
BENGALURU 22,234
PUNE 15,524
NCR 14,250
CHENNAI 9,091
AHMEDABAD 7,751
HYDERABAD 7,123
KOLKATA 5,883

18. CHENNAI COSTLIER THAN NCR
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Rs/sqft
Mumbai
NCR
Bengaluru
Pune
Chennai
Hyderabad
Kolkata
Ahmedabad
MUMBAI
PUNE
AHMEDABAD
HYDERABAD
KOLKATA
NCR
BENGALURU
CHENNAI

19. CHENNAI AMONG THE BETTER
PERFORMING MARKETS IN INDIA
5
7
9
11
13
15
5 7 9 11 13 15 17 19
Ageofunsoldinventoryinquarters
QTS
MUMBAI
PUNE
AHMEDABAD
HYDERABAD
KOLKATA
NCR
BENGALURU
CHENNAI

20. CHENNAI
OFFICE
JANUARY TO JUNE 2015

21. OFFICE MARKET
RECOVERING

22. VACANCY LEVEL AT A 5-YEAR LOW -
17.9% DURING JAN – JUN 2015
52.2
54.7
56.2
57.3
58.2
39.4
41.8
43.6
45.8
47.8
24.4% 23.6%
22.4%
18.9%
17.9%
16.4%
0%
5%
10%
15%
20%
25%
30%
-
10
20
30
40
50
60
70
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
mnsqft
Stock Occupied stock Vacancy

23. DEMAND CONSISTENTLY OUTSTRIPPING
SUPPLY SINCE 2014
1.7
2.5
1.5
1.1
1.6
1.1
2.4
1.8
2.2
2.0
-
0.5
1.0
1.5
2.0
2.5
3.0
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
mnsqft
New completions Absorption

24. DWINDLING OFFICE
SUPPLY AND STEADY
DEMAND DRIVE
RENTAL GROWTH

25. RENTAL GROWTH AT 3.1% DURING
JAN – JUN 2015
43
45
45
47
48
49
50
40
41
42
43
44
45
46
47
48
49
50
51
H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
INR/sqft/month

26. IT/ITeS CONTINUES TO
BE THE LARGEST
OCCUPIER

27. BANKING AND FINANCIAL SERVICES
INCREASES SHARE; BNP PARIBAS,
CITIBANK PICK UP SPACE
13%
42%
25%
20%
14%
54%
15% 16%
26%
46%
15%
13%
0%
10%
20%
30%
40%
50%
60%
BFSI* IT/ITeS Manufacturing Other Services
H1 2014 H2 2014 H1 2015
* INCLUDES SUPPORT SERVICES
ALL NUMBERS IN MN SQ FT
0.25
0.27
0.51
0.79
1.03
0.91
0.47
0.29
0.29
0.39
0.31
0.26

28. LACK OF LARGE FORMAT
OFFICE SPACE PUSHES
OCCUPIERS TOWARDS
PERIPHERAL LOCATIONS
LIKE SHOLLINGANALLUR

29. ONLY PERIPHERAL MARKETS SEE AN
INCREASE IN ABSORPTION SHARE
18%
27%
1%
48%
6%7%
23%
4%
27%
39%
0%
10%
20%
30%
40%
50%
60%
CBD SBD PBD Ambattur SBD OMR PBD OMR & GST
%Share
H1 2014 H1 20150.34
0.14
0.51
0.45
0.03
0.08
0.92
0.54
0.12
0.77

30. DEMAND EXPECTED TO
BE HIGHER THAN
SUPPLY IN THE COMING
6 MONTHS, VACANCY TO
FALL FURTHER

31. OUTLOOK FOR THE NEXT 6 MONTHS
NEW
COMPLETIONS
(MN SQ FT)
ABSORPTION
(MN SQ FT)
VACANCY
WEIGHTED
AVERAGE
RENT
(INR/SQ FT/MONTH)
H2 2014 1.1 2.2 18.9% 49.5
H2 2015E 0.7 2.4 15.6% 51
GROWTH -39% 6% 3%

32. HOW DOES CHENNAI
STAND COMPARED TO
OTHER CITIES

33. VACANCY IN CHENNAI THOUGH
REDUCING, IS STILL THE HIGHEST
AMONG IT / ITeS DRIVEN MARKETS
22%
21%
8%
15%
18%
16%
0%
5%
10%
15%
20%
25%
-
1
2
3
4
5
6
7
Mumbai NCR Bengaluru Pune Chennai Hyderabad
mnsqft
New completions Absorption Vacancy (RHS)
H1 2015

34. AT 3%, CHENNAI EXPERIENCED THE
WEAKEST RENTAL GROWTH DURING
JAN – JUN 2015
CHENNAI
-15%
-10%
-5%
0%
5%
10%
15%
20%
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
Mumbai NCR Bengaluru Pune Chennai Hyderabad
GrowthinRentals

35. AVERAGE DEAL SIZE 3RD LARGEST
AFTER BENGALURU & PUNE
21,430
25,622
71,577
21,434
24,520
24,702
23,291
21,872
54,253
40,773
34,507
18,585
-
20,000
40,000
60,000
80,000
Mumbai NCR Bengaluru Pune Chennai Hyderabad
sqft
H1 2014 H1 2015

36. RESIDENTIAL
CHENNAI
RESIDENTIAL MARKET IN A CONSOLIDATION PHASE; DEVELOPERS
RESTRICT NEW LAUNCHES ON THE BACK OF STEADY SALES
OFFICE
CHENNAI
RECOVERING – DWINDLING OFFICE SUPPLY AND STEADY DEMAND DRIVE
RENTAL GROWTH
KEY TAKEAWAYS

37. CHENNAI
REAL
ESTATE
JANUARY TO JUNE 2015