- New residential launches and sales in Bengaluru recovered in the first half of 2017 from demonetization impacts but were still significantly lower than the previous year. Unsold residential inventory remained high at around 114,064 units. - Budget homes priced between 25-50 lakhs made up almost 60% of new launches, reflecting current demand. Office space transactions declined 38% in the first half of 2017 compared to the same period last year. Vacancy rates continued falling to 4%. - IT/ITeS sectors remained the major occupier of office space but their share is gradually reducing as newer service sectors grow. The Outer Ring Road submarket increased its share of transactions in the first half of 2017.

1. Bengaluru
Residential & Office
January to June 2017
1

2. RESIDENTIAL
RECAP
2016
2

3. KEY
FINDINGS
H1 2017
01 New launches and
sales recover the
demonetisation
induced slump but YoY
hit a significant low in
H1 2017
03 The unsold inventory of
the city was recorded at
around 114,064 units in
various stages of
construction which still
is of concern
02 RERA, demonetisation
hangover and
considerable unsold
stock collectively cripple
new projects launch
04 Budget homes in
vogue - almost 6 out of
10 new launches in the
INR 25-50 lakh range
3

4. Half yearly
trend in
launches
& sales
4
0
5000
10000
15000
20000
25000
30000
35000
40000
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
No.ofunits
Launches Sales
-19%
-42%

5. Ticket-size
split of
launches
5 H1 2016 H2 2016 H1 2017
<INR 2.5 mn 8% 2% 3%
INR 2.5-5 mn 29% 64% 59%
INR 5-7.5 mn 41% 18% 22%
INR 7.5-10 mn 11% 6% 5%
INR 10-20 mn 8% 6% 10%
>INR 20 mn 3% 4% 1%

6. Micro-market
split of
launches
6
0%
27%
22%
42%
9%
0%
18%
31%
47%
4%
0%
14%
28%
44%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Central East North South West
H1 2016 H2 2016 H1 2017
24,281 units 13,395 units 14,026 units

7. Micro-market
split of sales
7
0%
29%
22%
40%
9%
0%
27%
18%
47%
8%
0%
24%
19%
48%
9%
0%
10%
20%
30%
40%
50%
60%
Central East North South West
H1 2016 H2 2016 H1 2017

8. Residential
price
index
8
95
100
105
110
115
120
125
130
Indexvalue(Q12013=100)
CPI Bengaluru
CPI
BENGALURU

9. Analysis of
unsold inventory
and QTS
9
86,821
100,464
105,359
100,968
105,525
98,734
96,195
121,248
114,064
6
7 7
8
8 8 8
9
10.0
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
-
2
4
6
8
10
12
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

10. Unsold
inventory
10
Unsold units Quarters-to-sell
Central 243 7.5
East 24,096 7.9
North 25,596 10.9
South 54,075 10.5
West 10,054 11.0
Bengaluru City 114,064 10.0

11. RESIDENTIAL
RECAP
H1 2017
11

12. OFFICE
RECAP
2016
12

13. KEY
FINDINGS
H1 2017
01 Transactions see a
decline in H1 2017
03 IT/ITeS share gradually
reducing due to advent
of newer service
sectors
02 At 4% in H1 2017,
vacancy has been
declining steadily over
the years
04
ORR sees an increase
of share in H1 2017
compared to H1 2016
13
05
Take up of space by
co-working companies
is a trend to watch for

14. Half yearly
trend of new
completions
& transactions
14
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Mn.sq.ft.
New Completion Transactions
-5%
-38%

15. 15 Half yearly
trend of
vacancy
11%
10%
8%
8%
7%
6%
4%
0%
2%
4%
6%
8%
10%
12%
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Mn.sq.ft

16. 16 Half yearly
trend of
rentals
47.0 48.5 50.0 51.5
55.2
57.8
60.1
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
INR/sq.ft.permonth

17. 17 Sector-wise
split of
transactions
58%
4%
7%
30%
62%
9%
4%
25%
57%
9% 8%
26%
0%
10%
20%
30%
40%
50%
60%
70%
IT/ITeS BFSI Manufacturing Other Service
Sectors
H1 2016 H2 2016 H1 2017
6.1 mn sq ft 5.3 mn sq ft 5.8 mn sq ft

18. 18 Business
district-wise
transaction
3.8 mn sq ft 3.1 mn sq ft
7%
16%
33%
24%
18%
1% 1%
11%
23%
44%
12%
7%
4%
0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
CBD & Off
CBD
SBD ORR PBD East PBD South PBD North PBD West
H1 2016 H1 2017

19. OFFICE
RECAP
H1 2017
19

20. Bengaluru
Residential & Office
January to June 2017
20
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