This document summarizes real estate trends in Bengaluru for the period of July-December 2015. It finds that residential launches declined 27% in 2015 while sales remained steady. Specifically, launches fell 13% in the second half of 2015 compared to the previous year, but sales recovered slightly by 4%. In the office sector, Bengaluru witnessed the highest absorption level since 2011 of 11.1 million square feet in 2015, driven by the IT/ITeS sector. The West market emerged as the top performing area for residential real estate with the lowest unsold inventory levels.

1. BENGALURU
July – December 2015

2. 2015 witnesses
lowest launches in 5 years;
Sales holding steady
RESIDENTIAL

3. 2015 witnesses 27% decline
in launches
63,261
67,773
78,300
68,134
49,684
41,944
50,692
57,366
55,701
51,918
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2011 2012 2013 2014 2015
No.ofunits
Launches Absorption
ANNUAL LAUNCHES & ABSORPTION

4. Y-o-y, While launches
continue to fall
during H2 2015;
sales witnesses
steady recovery

5. New launches fall Y-O-Y by 13%;
sales witnesses a 4% recovery in h2 2015
37,236
36,145
32,589
28,284
27,757
25,522
28,445
29,684
0
5000
10000
15000
20000
25000
30000
35000
40000
H2 2012 H2 2013 H2 2014 H2 2015
Noofunits
Launches Sales

6. While launches decline in
other zones in h2 2015,
south bucks the trend

7. South sees 30% growth in launches
55
8,973
11,008
8,260
4,293
30
7,403
7,050
10,725
3,075
-
2,000
4,000
6,000
8,000
10,000
12,000
Central East North South West
Noofunits
H2 2014 H2 2015

8. hope of better connectivity
elevates southern peripheral
locations as promising
budget destinations

9. South sees 88% of city’s new
launches in the INR 25 lakh category
in H2 2015
MICRO-MARKET TICKET-WISE SPLIT OF LAUNCHED UNITS DURING H2 2015
0%
20%
40%
60%
80%
100%
<2.5 mn 2.5-5 mn 5-7.5 mn 7.5-10 mn 10-20 mn >20 mn
Central East North South West

10. west - the fastest
emerging market

11. while east expands, west to
watch out for
48
6,681
7,439
12,003
2,275
29
7,698
7,401
11,618
2,938
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Central East North South West
No.ofunits
Sales Trend
H2 2014 H2 2015

12. West, the best performing
market in the city with
lowest QTS

13. Metro connectivity & lifestyle
projects make West the preferred
market
5
6
7
8
9
10
11
5 6 7 8 9 10 11
Ageofunsoldinventoryinquarters
QTS
WEST
CENTRAL
EAST
NORTH
SOUTH
Size of bubble reflects size of unsold inventory

14. start-ups give fillip to
Bengaluru’s stellar
performance
OFFICE

15. 2015 witnesses 11.1 mn sq ft of
absorption, the highest since 2011
ANNUAL LAUNCHES & ABSORPTION4.3
7.4
7.2
7.5
8.5
11.5
9.4
9.5
10.4
11.1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
2011 2012 2013 2014 2015
mnsqft
New Completion Absorption

16. absorption increases by 14% y-o-y,
new completion remains steady
4.50
4.40
4.50
5.00
4.10
4.20
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
5.10
New Completion Absorption
mnsqft
H2 2014 H2 2015

17. while e-commerce holds
potential,
It sector tips the scale
in h2 2015

18. 70% of absorption in h2 2015 led by
It/ites sector
53%
13%
4%
29%
70%
4%
10%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
IT/ITeS BFSI Manufacturing Other Service Sectors
H2 2014 H2 2015

19. KEY Takeaways
RESIDENTIAL
Cautious launches, steady sales in h2 2015 on a
y-o-y basis
West emerges as the best performing market
OFFICE
Strong absorption in 2015 – it/ites & Start-ups
lead the way
Focus shifts to peripheral office markets in h2
2015

20. BENGALURU
July – December 2015