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 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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Residential Property Market Overview Nov 2012

  1. 1. Residential PropertyMarket OverviewINDIAQUARTERLY UPDATE | NOVEMBER | 2012Accelerating success.
  2. 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. 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. 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

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