A look into the real estate figures of the residential markets across Mumbai, NCR, Bengaluru, Pune, Hyderabad, Chennai, Ahmedabad, Kolkata and office markets across Mumbai, NCR, Bengaluru, Pune, Hyderabad, Chennai for the period January – June 2017 (H1 2017).

1. INDIA
REAL
ESTATE
JANUARY – JUNE 2017
1

2. RESIDENTIAL
RECAP 20162
2016 launches and sales
at a decadal low
• Demonetisation and its effects

3. KEY FINDINGS
RESIDENITAL H1 20173
Affordable housing
a structural change;
71% launches in
less than INR 50
lakh category vis a
vis 52% a year ago
Launches
crash
41% -
reach lowest
level in 7 years
596,044
unsold inventory
in top 8 cities–
17% drop from
peak of H2 2014
Sales down by
11% YoY –
lowest first-half
sales in the last
5 years

4. 236,084
222,144
232,491
187,614
165,426
154,233
117,200
126,865
107,120
68,702
62,738
H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
4
Jan - Feb
Demonetisation hangover
May - June
RERA compliance
Developers cautious
Unsold inventory pressure
Launches come to a
grinding halt – down 73%
from H1 2013
Note: The top 8 cities are Mumbai, NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad
Top 8 cities half yearly
trend in launches
Launches down by
41% in H1 2017 YoY
(-9% sequentially)

5. 5
NCR & Ahmedabad worst
hit in launches
24,450
17,462
24,281
8,713
5,815
5,700
11,891
8,809
9,740
9,273
13,395
11,300
4,800
5,900
9,093
5,200
15,763
4,800
14,026
7,905
6,035
2,571
9,764
1,874
Mumbai NCR Bengaluru Pune Chennai Hyderabad Kolkata Ahmedabad
Numberofunits
H1 2016 H2 2016 H1 2017
City-wise half-yearly
launches
Ahmedabad and NCR
down 79% and 73% YoY
respectively
Chennai out of slumber,
increases 4% YoY
Sequentially, Mumbai picks up
close to 62% albeit lower by
36% YoY

6. 6
Resurrection of affordable
housing Top 8 cities ticket-size
split of launches
Affordable housing a structural
change with commensurate
supply side response
A significant chunk of new
launches below INR 50 lakh –
71% vis-a-vis 52%
H1 2016 H2 2016 H1 2017
<2.5 mn 17% 20% 36%
2.5-5 mn 35% 39% 35%
5-7.5 mn 22% 20% 14%
7.5-10 mn 10% 11% 6%
>10 mn 10% 6% 8%
>20 mn 6% 4% 1%
71%52%

7. 7
NCR, Pune, Ahmedabad,
Kolkata drive affordable
housing revival
0%
20%
40%
60%
80%
100%
Mumbai NCR Bengaluru Pune Chennai Hyderabad Kolkata Ahmedabad
< Rs 2.5 mn Rs 2.5-5 mn Rs 5-7.5 mn Rs 7.5-10 mn Rs 10-20 mn > Rs 20 mn
Ticket-size split of
launched units in
H1 2017
Around 80% of launches in
NCR, Pune, Ahmedabad and
Kolkata in the sub INR 50 lakh
category

8. 8
Sales not as badly hit as
launches YoY
139,295 140,527
126,616
141,341
135,016
109,158
120,755
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Numberofunits
Note: The top 8 cities are Mumbai, NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad
Top 8 cities half yearly
trend in sales
Sales down by 11% YoY but up
sequentially by same margin post
demonetisation
•Government thrust towards
affordable housing
•Freebies and discounts whip
up sales of ready inventory
•Sentiments among buyers up
owing to RERA

9. 9
Sequentially, sales in all
cities have improved
City-wise half-yearly
sales
NCR and Kolkata most hit,
down 26% and 22% YoY
respectively
Pune, Chennai and Hyderabad
witness growth YoY
34,971
23,092
26,220
15,688
8,450
7,700
10,339
8,556
25,403
16,913
20,309
16,800
7,737
7,289
7,308
7,400
32,077
17,188
21,210
17,480
8,850
7,901
8,109
7,941
Mumbai NCR Bengaluru Pune Chennai Hyderabad Kolkata Ahmedabad
H1 2016 H2 2016 H1 2017

10. 10
Time correction already
happened
Residential price index
Across 8 cities, residential price
index lower than Consumer
Price Index (CPI)
95
100
105
110
115
120
125
130
Indexvalue(Q12013=100)
CPI Mumbai NCR Bengaluru Pune
Chennai Hyderabad Kolkata Ahmedabad

11. 11
Pan India unsold inventory
lowest in the last 4 years
Trend of all India unsold
inventory and QTS
Unwinding of unsold inventory
from drastic fall in launches
Less than 3 years required to
offload existing unsold inventory
7.4
8.2
9.0
10.1
11.3 11.5 11.3 11.3 11.3
520,000
540,000
560,000
580,000
600,000
620,000
640,000
660,000
680,000
700,000
720,000
740,000
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Unsoldinventory(no.ofunits)
QTS
Unsold inventory (RHS) QTS

12. 12
NCR the worst market –
over 4 year inventory
Inter-city comparison
on unsold inventory
Smaller metros like Pune and
Hyderabad have relatively less
inventory pressure
Unsold units Quarters-to-sell
Mumbai 138,653 8.8
NCR 180,370 17.8
Bengaluru 114,064 10.0
Pune 40,141 4.5
Chennai 28,110 6.6
Hyderabad 22,658 5.9
Kolkata 39,114 10.6
Ahmedabad 32,934 7.7
Top 8 cities 596,044

13. 13
Affordable housing comes to rescue
of the beleaguered real estate sector
Lowest first-half sales and launches
in the last 5 years
SUMMARY

14. OFFICE
RECAP 201614
2016 office transactions at
40.6 mn sq ft at par with
2015, the highest since 2009

15. KEY FINDINGS
H1 201715
Co-working
operators show
traction with
around half a
million sq ft taken
up across
Bengaluru, Pune
and NCR
Transactions
down 10% YoY
in H1 2017, new
completions
lower by 5%
At 12%, vacancy
levels at the lowest
since 2012 when it
was 21%
Industry headwinds,
supply crunch affect
IT sector
transactions; share
down to 39% vis-
à-vis 43% a year ago

16. 17.9
20.7
17.9
23.2
20.2 20.6
18.1
0
5
10
15
20
25
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
mnsqft
16
Transactions decline 10% YoY
in H1 2017
Most cities face a supply
crunch for the country’s
largest occupier – IT/ ITeS
Transactions decline 10%
YoY
Note: The top 6 cities are Mumbai, NCR, Bengaluru, Pune, Chennai and Hyderabad
Top 6 cities ha
trend of transa

17. 17
Top 6 cities half yearly
trend of new completions
In H1 2017, new completions
lower by 5%
Developer inclination towards
residential segment over the
last few years a major cause
17.1
19.5
15.7
18.7 19.0
10.1
17.9
0
5
10
15
20
25
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
mnsqft

18. 18
Top 6 cities half-yearly
trend of vacancy level
At 12%, vacancy levels at the
lowest level since 2012 when it
was 21%
18.5%
17.5%
16.7%
15.6%
15.1%
13.3%
12.4%
12%
14%
16%
18%
20%
0
5
10
15
20
25
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
mnsqft

19. 19 City wise trend
Except Mumbai and NCR, other
cities facing low vacancy level
Even prime locations in NCR
and Mumbai are in single digit
All cities except Mumbai had
lower completion compared to
demand
21.9%
17.7%
3.8%
7.9%
10.8%
9.0%
0%
5%
10%
15%
20%
25%
0
1
2
3
4
5
6
7
8
9
Mumbai NCR Bengaluru Pune Chennai Hyderabad
mnsqft
New completions Transactions Vacancy (RHS)

20. 20
Industry-wise transaction
split
IT sector, the backbone of
Indian office market, facing
business challenges
IT industry headwinds, share
down to 39% vis-a-vis 43% a
year ago
Co-working operators show
traction with around 0.5 mn sq ft
taken up across Bengaluru,
Pune and NCR
H1 2016 H2 2016 H1 2017
BFSI 12% 13% 12%
IT/ITeS 43% 49% 39%
Manufacturing 16% 17% 18%
Other Services 29% 21% 31%

21. 21
Industry headwinds, dearth of
relevant supply affect India’s largest
occupier – IT/ITeS
Vacancy lowest since GFC
SUMMARY

22. 22
A slew of the most disruptive reforms in independent
India became a reality in a span of a few months.
Described by many as the Brahmastras against black
economy in an unorganised industry, demonetisation,
RERA, the Benami Prohibition Act and the recently
rolled out GST have time and again pushed the already
sluggish market to the brink. But we believe that these
were corrective measures long due to transform real
estate into a robust, transparent and thriving sector.
The short-term hiccups grappling the industry would
eventually fade away and bear rich dividends in the
future.
Shishir Baijal, Chairman & Managing Director
“
”

23. INDIA
REAL
ESTATE
JANUARY – JUNE 2017
23
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