Presentation on the India Real Estate Outlook Report highlighting the residential and office real estate scenario in NCR.

1. NCR
July – Dec 2014

2. Residential
July – Dec 2014

3. NCR performs the worst over a decade:
Sales nosedived 43%
NCR residential market launches, sales and price trend
RESIDENTIAL
12% rise in H2 2014 vs. H2 2013
H2 2013 – 33,516 units
H2 2014 – 37,643 units
54% fall in H2 2014 vs. H2 2013
H2 2013 – 26,119 units
H2 2014 – 12,075 units
3% rise in price
Y-O-Y in 2014

4. RESIDENTIAL
Residential Market in NCR in Year 2014
Sales
volume
fell
by
43%
40,575 units sold vs.
71,421 units in 2013
New
launches
dropped
by
24%
73,143 units launched vs.
95,768 units in 2013

5. With limited fresh supply in the market, Noida is in a
state of stagnation
RESIDENTIAL
Micro-market-wise residential launches – Share in %
537units
70units
289units
5,609units
9,154units
6,733units
18,002units
11,867units
15,988units
5,819units
9,335units
9,564units
3,538units
4,878units
4,999units

6. Sales across Gurgaon and Noida remain low
RESIDENTIAL
Micro-market-wise residential sales – Share in %619units
428units
191units
5,418units
5,729units
2,361units
12,176units
12,188units
5,047units
4,512units
5,485units
2,448units
3,334units
4,478units
1,989units

7. NCR, one of India’s largest residential market will take
more than 3 years to offload the unsold inventory
RESIDENTIAL

8. Noida and Greater Noida are the unhealthiest
residential markets in NCR
RESIDENTIAL
Delhi
Faridabad
Ghaziabad
Gurgaon
Greater Noida
Noida
Total Unsold Units
192,568
as on December 2014
Size of the bubble indicates the quantum of unsold inventory

9. RESIDENTIAL
NCR observes stagnation in residential prices
in 2014

10. Concluding Remarks
 NCR performs the worst in a decade! Sales nosedived by 43%
 Noida – a desperate market for residential sales
 Developers bleed as Gurgaon records a 40% dip in sales volume, the
worst ever in its history
RESIDENTIAL

11. Going forward
 Launches likely to increase by 7% in the Jan – Jun 2015 period
 Sales to stay subdued at 20,000 units during Jan – June 2015;
however this is significantly higher than what NCR recorded
during H2 2014 at 12,075 units
 Price to remain stagnant during Jan – Jun 2015 with a 2% increase
Y-O-Y
RESIDENTIAL

12. Office
July – Dec 2014

13. 2014 proves to be one of the best years for the NCR
office market
OFFICE
mn.sq.ft

14. New completions to continue to be less than
4 mn.sq.ft. during Jan – Jun 2015
OFFICE

15. Share of other service sectors saw a 3-fold jump in
absorption during Jul – Dec 2014
Sector analysis
OFFICE

16. Gurgaon dominated the total absorption
levels with a 61% share during Jul – Dec 2014
OFFICE
72,895sq.ft.
24,387sq.ft.
126,802sq.ft.
85,300sq.ft.
5,000sq.ft.
2,578,074sq.ft.
2,333,679sq.ft.
2,485,448sq.ft.
392,861sq.ft.
856,349sq.ft.
933,122sq.ft.
116,669sq.ft.
290,740sq.ft.
537,873sq.ft.

17. Rentals heading north due to limited new
completions and a strong demand base
OFFICE
Weighted Average Rental Movement

18. Concluding Remarks
• In 2014, big ticket deals return to the NCR office market - E-
Commerce on the driver seat
• Both new completions and office space absorption have increased
by 14 and 15% respectively in 2014 Y-O-Y
• Weighted average rental has moved up by 9% at the end of 2014;
vacancy stayed at 20% vis-à-vis 21% in 2013

19. Going Forward
 Policy announcements on REITs and FDI to push leasing activity
across NCR
 NCR is likely to witness a restricted supply of new office space
during Jan – Jun 2015; 3.5 mn.sq.ft. of new space is likely to hit
the market vis-à-vis 4 mn.sq.ft. in H1 2014
 Absorption likely to be 3.3 mn.sq.ft. during Jan – Jun 2015; similar
to that of H1 2014
 Weighted average rental to rise from INR 58/sq.ft./month in H2
2014 to INR 59/sq.ft./month in H1 2015 - a negligible 2% increase

20. KnightFrank.India@in.knightfrank.com
Research@in.knightfrank.com
Contact