Research Report – The inside story Redwoods Research’s Mid-Year Residential Research Report for 2017 released in the month of July is a compilation of the general residential market in Bengaluru, and particularly the Supply and Demand scenario to give the reader a better understanding of the same. This report comprehends a cohesive research by the Redwoods team of Research analysts and experts where an intensive on-field thorough research by tracking trends from over 1,496 primary Bengaluru’s residential projects was conducted. Fundamental figures  Bangalore residential market witnessed a slight escalation in its Weighted Average Capital Value by 2.3% from INR 5,314 per Sq. ft. to INR 5,437 per Sq. ft.  The Bangalore residential market would require 39 Months to offload its Unsold Inventory. Category wise highlights  Sales Velocity of Residential Apartments and Plots dropped by -16.5% and -24.4% respectively, whereas the Row houses and Villa Developments observed a slight increase in its Sales Velocity by 1% and 09% respectively.  Months Inventory for apartment and plot recorded at 40 and 30 Months respectively. To know more, contact Mr. Idirees Chenakkal

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Residential Real Estate Market, Bengaluru
JULY-2017(SNAPSHOT H1-2017)
Information sourced and compiled by Mr. Idirees , Head Research Department,Chenakkal
Redwoods Group, by analyzing the ongoing Residential Projects.
FOR COMMENTS PLEASE CONTACT: idirees.chenakkal@redwoodscorp.com
+91 80 4928 3000 / +91 88844 40135

2. REDWOODSRESEARCH
Embracing our potential as the market's leading provider of in-depth Real Estate Analysis & Research
Report, Redwoods has now successfully exited from the LJ Hooker franchise. Redwoods Research
India is back with the same team of Real Estate experts and analysts with boosted dynamism backed
by on- eld experience to bring you latest updates and reports aiding you to make better Real Estate
decisions.
Redwoods Group's released in the month of July isMid-Year Residential Research Report for 2017
the compilation of the general residential market in Bengaluru, and particularly the Supply and
Demand scenario to give the reader a better understanding of the same. The report constitutes of and
comprehends a cohesive research by the Redwoods team of Research analysts and experts where an
intensive on- eld thorough research was piloted by tracking trends from over 1,496 primary
Bengaluru's residential projects.
LJ HOOKER RESEARCH INDIA IS NOW REDWOODS RESEARCH
India was considered to be the fastest growing economy in the year 2014. However, in the recent
years, the Indian economy has been noting a slow growth rate as most of our economic directories are
expressing a weakening trend. According to the nancial experts and economists, India's growth is
expected to reverberate to 7.2% in the 2017–18 scal and 7.7% in 2018–19.
India's GDP growth decelerated ominously to 6.1 percent YoY in 1Q17 from 7.0 per cent in 4Q16
which is thus far the lowest recorded growth rate. The reason for this being the slowdown in consumer
spending, and a drop in the investments; following the demonetization program in November 2016
which drained out 86 percent of the currency circulating in the market. In addition to these afore
mentioned facts, the government changed the GDP base year to 2011-2012 from 2004-2005.
INTRODUCTION – THE INDIAN ECONOMY & REAL ESTATE
THE REPORT CONSISTS OF THREE MAIN PARTS:
Ÿ Part One - the general economic conditions and their probable effect on the Bengaluru Residential Real
Estatemarket.
Ÿ PartTwo-theanalyticaldatafromover1,496residentialprojectsacrossBengaluru.
Ÿ PartThree-detailedlistofongoingresidentialdevelopmentsacrossthecity.

3. REDWOODSRESEARCH
GOODS AND SERVICE TAX (GST)
Ÿ The conception of GST is to account for the 'tax credits' while aiming to rationalize tax structure alongside
bringing in price uniformity.
Ÿ The Goods and Services Tax (GST) that rolled out on the Friday of 1-July-2017 has four tax slabs of 5%,
12%, 18%, and 28%, for various items and categories.
Ÿ Economic and real estate experts have foretold that the GST would bring in a lot of transparency while
minimizing fraudulent transactions.
Ÿ The effective GST rate on under-construction projects will be 12 per cent only in contrast to 18 per cent as
there will be a diminution in the cost of the land. It is believed that Supply chain mechanism in real estate
sector would be revamped after implementation of the GST.
Ÿ RERA, which came into force on the 1st of May 2017 in India, demands compulsory registration of all the
residential realty projects under the Regulatory Act for plot sizes that are more than 500sqm. It is also
applicable to certain ongoing, under construction projects.
Ÿ RERA aims to protect the interest of home-buyers while bringing in transparency and accountability into
the otherwise unregulated realty market.
Ÿ Builders are expected to disclose project related information including project plan, layout, and
government approvals- related information to the concerned RERA regulator.
REAL ESTATE REGULATION ACT (RERA)
FACTORS INFLUENCING THE INDIAN REAL ESTATE
PREDICTION FOR THE BENGALURU RESIDENTIAL MARKET
GENERAL COMMENT
Indian Real estate market has been through a phase of transformation in the past 6 months where there have
been 3 signi cant events that have impacted the industry both directly and indirectly. These events include
Demonetization, Goods and Services Tax (GST), and Real Estate Regulation and Development Act (RERA) in
the economic and regulatory front; which brought along them the mixed feelings of hope and apprehension.
Bengaluru Real Estate Market was going through a tough during the past few years, and especially in the last
one-and-a-half year due to….
PREDICTION FOR THE SECOND HALF 2017
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PART – II STATISTICAL REPORT ON BENGALURU RESIDENTIAL MARKET
EXECUTIVE SUMMARY
Ÿ Bengaluru residential market witnessed a
slight escalation in its Weighted Average
Capital Value by 2.3% from INR 5,314 per Sq.
ft. to INR 5,437 per Sq. ft.
Ÿ The Bengaluru residential market would
require 39 Months to of oad its Unsold
Inventory.
Ÿ
Sales Velocity plummeted by 4.9% and
reached an all-time low of 0.86% since 2012.
Ÿ During the last 6 months, i.e., the 1st half of
2017, an upsurge of 120% in the New
Launches was witnessed while about 9.8 Mn
Sq. ft. of Apartment Developments was added
in the Residential Market.
Ÿ Weighted Average Capital Value of the newly
launched apartment stands at INR 3,315 per
Sq. ft. which is -28% fall when compared to the
previous period
FUNDAMENTAL FIGURES NEW LAUNCHES

4. REDWOODSRESEARCH BENGALURU PRIMARY RESIDENTIAL MARKET – MACRO ANALYSIS
KEY INDICATORS
Bengaluru residential market witnessed a slight escalation in its weighted average Capital Value by 2.3% from INR
5,314 per Sq. ft. to INR 5,437 per sq. ft.
Sales Velocity further plummeted by 4.9% and reached an all-time low of 0.86% since 2012; at this pace, the
Bengaluru residential market would require 39 months to of oad its unsold inventory.
KEY AVERAGES
Residential apartment ticket size for a unit has stretched back to 1.03 crore. Whereas the other developments
such as Villa and Row house increased further by 4% and 0.4% respectively.
The average size of an apartment stands at 1,630 Sq. ft. Row House & Villa are offering at an average of 3,293 Sq.
ft. and 3,321 Sq. ft. respectively.

5. REDWOODSRESEARCH
DEVELOPMENT WISE PERFORMANCE INDICATORS
YEARLY LAUNCHES COMPARISON
NEW LAUNCHES IN RESIDENTIAL APARTMENTS
REGION WISE MARKET DYNAMICS
DEVELOPMENT WISE PRICE TREND
Among all residential developments, Plotted schemes are giving the highest CAGR of 10.16% followed by Row
house and apartment by 7.51% and 3.1% respectively.
During the past 6 months, Apartment prices ascended by 2.3% as compared to the previous period.
Eastern region contributes 76% of the unsold Inventory of where the South-east shares 45% and the North-east
shares 32% of the unsold units.
South-east has an unsold inventory of 63.8 Mn Sq. ft. translating into INR 30,229 crores of unsold units.

6. REDWOODSRESEARCH
UNSOLD INVENTORY DISTRIBUTION BY CATEGORY WISE
BUDGET HOMES (30 LAKHS TO 60 LAKHS)
DETAILED ANALYSIS ON THE BUDGET CATEGORIES
VALUE HOMES (LESS THAN 30 LAKH BUDGET)
Average Size in Sq. . 1,239 1,231 2,121 2,049 1,824 1,658

7. Detailed Residential market analysis and
the analytical data from over 1,496
residential projects across Bengaluru
PART - III PRIMARY PROJECT SOURCE DATA
APARTMENT DEVELOPMENTS
BANGALORE NORTH EAST

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