India Residential Property Market Overview August 2013

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INDIA
QUARTERLY UPDATE | AUGUST | 2013
Residential Property
Market Overview

www.colliers.com
research & forecast Report
SYDNEY CENTRAL BUSINESS DISTRICT
India RESIDENTIAL market
Research & forecast report
INDIA | AUGUST 2013 | residential
www.colliers.com
1
As of June, 2013 (Provisional)
2
SBI Home Loan Rate for Loan upto INR 30 Lakhs
3
SBI Fixed Deposit rate for a period of more than one year and amount
below INR 1 Crore
4
Realty Index is a free float weighted index, comprised of real estate
development companies in the BSE-500 Index.
ECONOMIC BAROMETER
Return on Alternative Investments
Jul-12 Jul-13
REPO RATE 8.00% 7.25%
REVERSE REPO RATE 7.00% 6.25%
CRR 4.75% 4.00%
INFLATION 7.52% 4.86%
Home Loan Rate 11.00% 9.95%
Jul-12 Jul-13 YoY %
Change
Gold 29,216 26,717 -8.55%
SILVER 51,572 41,026 -20.45%
Fixed Deposit 9.00% 8.75% -2.78%
EQUITY 17,103 20,034 17.14%
REALTY INDEX 1,725 1,548 -10.29%
3
4
2
1
Repo Rate Cash Reserve Ratio Wholesale Price Index
ECONOMIC INDICATORS
InPercentage
MACRO ECONOMIC OVERVIEW
India’s GDP growth was registered at 4.7% in the Jan - Mar quarter of the current fiscal,•
marginally up from the last quarter figure of 4.5%.
Headline inflation, based on the wholesale price index, stood at 4.7% for the month of May 2013•
as compared to 7.55% for the corresponding month of previous year. The reserve bank of India
kept the policy rates unchanged despite lower inflation due to various economic factors such as
currency depreciation and fiscal deficit.
The rupee plunge 8.6% in the April-June quarter due to massive capital outflows and month end•
dollar demand from importers. The rupee closed at an all-time low of 60.72 against the US dollar
in the last week of June.
The overall slowdown in the economy has impacted the residential market sentiments as buyers•
were cautious to make long term Investments decision. The slowdown in sales has resulted in
increased unsold inventories and downward pressure on capital values. Increasingly projects
are offering incentives, and easy payment options.
COLLIERS VIEW: There have been limited number of new launches in previous 2-3 quarters. We•
anticipate increase in the new launches in coming quarters, as many developers are looking to
the festive season to launch their projects. Most market’s are extremely price conscious and
project pricing will be a key criteria for the success of a project.
4.0
3.0
6.0
5.0
8.0
9.0
7.0
11.0
10.0
12.0
Apr‘09
Feb‘09
Dec‘09
Apr‘11
Apr‘12
Jun‘13
Apr‘13
Feb‘11
Jun‘09
Jun‘10
Apr‘10
Feb‘10
Jun‘11
Jun‘12
Aug’08
jun’08
Apr‘08
Aug‘09
Aug‘10
Aug‘11
Aug‘12
Dec’08
Oct‘08
Oct‘09
Dec‘10
Oct‘10
Oct‘11
Oct‘12
Feb‘12
Feb‘13
Dec‘11
Dec‘12
2.0
1.0
0.0
-1.0
-2.0
Source: Goverment of India, Colliers International India Research

Colliers International | p. 3
MumBAI
SELECT NEW PROJECTS
Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)**
Aurum Grande Kanjurmarg Lodha Group 4Q 2016 10,500
Kalpataru Elan Parel Kalpataru Group 4Q 2017 26,500
Oriente Parel Lodha Group 4Q 2017 22,000
Radiance Goregoan Kalpataru Group 4Q 2017 13,500
Sapphire Powai Sai Group of Industries 4Q 2015 10,500
CITY RESIDENTIAL BAROMETER
2Q 2013 3Q 2013F
Capital Value
Rental Value
New Project
Construction Pace
Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties
per sq.ft.
MUMBAI
In 2Q 2013, Mumbai’s residential market•
witnessed an increase in launches of premium
residential projects in micro-markets like the
Powai, Goregaon, Kanjurmarg and Parel.
These projects were priced in the range of
INR 10,500 - 26,500 per sq ft.
Construction activities remained slow,•
resulting in no major new supply during the
quarter.
Demand for smaller residential properties•
from investors, as well as end-users, has
picked up. To cater to lower ticket sizes; many
developers are focusing on developing smaller
unit sizes.
Capital values for prime residential properties•
remained stable, barring select locations
which witnessed marginal increase in the
range of 1 - 2% QoQ.
The rental values of premium residential•
properties increased marginally in the range of
1 - 2% QoQ in almost all of the micro-markets,
with the exception of micro-markets in south-
central locations like Malabar Hill, Altamount
Road, Carmichael Road, Breach Candy,
Napeansea Road, Peddar Road, Colaba and
Cuffe Parade, which experienced a marginal
decrease in rents of 1% QoQ.
This quarter the rail link between Churchgate•
and Dahanu Road became operational, which
will improve the connectivity of the western
suburbs to the south Mumbai area.
COLLIERS VIEW:• Demand for smaller
residential units in the primary market is
estimated to remain healthy due to smaller
ticket size. Capital values in suburban areas
will witness a moderate increase in view of
the substantial new supply that is anticipated
in medium term.
0
10,000
20,000
30,000
40,000
60,000
70,000
50,000
80,000
INRpersq.ft.INRpersq.ft.permonth
1Q2008
3Q2008
3Q2009
1Q2009
1Q2010
3Q2010
1Q2012
3Q2012
1Q2013
3Q2013F
1Q2014F
1Q2011
3Q2011
80,000
40,000
50,000
70,000
60,000
10,000
20,000
30,000
0
Micro Market Ongoing Price (P.S.F)
Thane-Kalyan 4,000 - 8,000
Navi Mumbai 3,500 - 7,500
Virar- Boisar 3,000 - 6,000
Prabhadevi
Colaba, Cuffe Parade
SouthMumbai
Malabar Hill, Altamount
Road, Carmichael Road
Worli
Worli
Breach Candy, Napeansea
Road, Peddar Road
Prabhadevi
Bandra
Bandra
Santacruz
Santacruz
Andheri
Andheri
Powai
Powai
Khar
Khar
Juhu
Juhu
200
150
100
50
0
Powai
Khar
Prabhadevi
Breach Candy,
Napeansea Road, Peddar Road
Malabar Hill, Altamount Road,
Carmichael Road
Colaba, Cuffe Parade
Bandra
Juhu
Andheri
Worli
Santacruz
INRPersq.ft.
Note:
Average Capital/Rental Value Range: Indicative asking price for premium
residential properties on per sq.ft. basis.
Note: * As mentioned by developer
** Base selling price as quoted by developer
AVERAGE CAPITAL VALUE RANGE
AVERAGE RENTAL VALUE
AVERAGE CAPITAL VALUE TRENDS
INVESTMENT OPPORTUNITIES

p. 4 | Colliers International
2Q 2013 3Q 2013F
Capital Value
Rental Value
New Project
Construction Pace
delhi
SELECT ONGOING PROJECTS
Capital Greens Shivaji Marg DLF Ltd. 2Q 2015 14,000
Castlewood Okhla Indiabulls Ltd. 4Q 2013 12,800
Kings Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000
Queens Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000
Winter Hills Dwaraka Morh Umang Realtech 4Q 2013 8,750
delhI
During 2Q 2013, limited supply was added to•
Delhi’s premium residential inventory. Only
a few small-scale residential redevelopment
projects were readyforpossession in locations
like Vasant Vihar, Anand Niketan, Panchsheel
Park, Anand Lok and Defence Colony.
In the same quarter, capital and rental values•
for premium residential properties remained
stable in all of the micro-markets; not much
activity was noticed during the quarter.
Absorption remains upbeat however, and
various farm-house deals were concluded
in micro-markets like Westend Green and
Chhattarpur.
This quarter the Delhi Urban Art Commission•
has cleared the redevelopment plan of Kidwai
Nagar (East). The project is a vision project
of Ministry of Urban Development and will
be developed by The National Buildings
Construction Corporation (NBCC) with an
investment of more than INR 4,000 crore.
The project will comprise 4,747 residential
units and about 1.3 million sq.ft. of commercial
space adjoining prime areas such as AIIMS,
Dili Haat and INA Market. The residential
apartments are priced at the rate of INR
10,004 per sq ft.
The Union Cabinet clears the Urban•
Development Ministry proposal to repeal the
Delhi Rent Control Act, 1958. According to
the Urban Development Ministry the new act
will be more balanced as compared to 1958
Act. This would benefit the landlords who
are bound by rent controls and getting very
low rentals even the property prices increase
many folds.
COLLIERS VIEW:• Major infrastructure
activities like overhead bridges and extensions
to metro lines will help to boost the residential
real estate market in the city. Capital values
are expected to remain upbeat due to limited
upcoming residential supply and consistent
demand.
15,000
0
30,000
45,000
75,000
90,000
105,000
60,000
120,000
INRpersq.ft.INRpersq.ft.permonthINRPersq.ft.
1Q2008
3Q2008
3Q2009
1Q2009
1Q2010
3Q2010
1Q2012
3Q2012
1Q2013F
3Q2013F
1Q2014F
1Q2011
3Q201140,000
50,000
60,000
70,000
80,000
100,000
90,000
30,000
20,000
10,000
0
AnandNiketan,
VasantVihar
Anand Niketan,
Vasant Vihar
Panchashila,Anandlok,
NitiBagh,SDA
Panchashila, Anandlok,
Niti Bagh, SDA
FriendsColony,
MaharaniBagh
Friends Colony,
Maharani Bagh
ShantiNiketan,
Westend
Shanti Niketan,
Westend
GreaterKailash
I&II,South
Extension
Greater Kailash
I & II, South
Extension
GolfLinks,JorBagh,
SunderNagar
Golf Links,
Jor Bagh,
Sunder Nagar
ChanakyaPuri
Chanakya Puri
PrithvirajRoad,
AurangzebRoad
Prithviraj Road,
Aurangzeb Road
200
160
120
80
40
0
Golf Links, Jor Bagh, Sunder Nagar
Panchashila, Anandlok, Niti Bagh, SDA
Greater Kailash I & II, South Extension
Chanakya Puri Shanti Niketan, Westend
Friends Colony, Maharani Bagh
Prithviraj Road, Aurangzeb Road
Anand Niketan, Vasant Vihar
Note:

2Q 2013 3Q 2013F
Capital Value
Rental Value
New Project
Construction Pace
GURGAON
During this quarter the city witnessed fewer•
project launches, compared to previous
quarter. Projects launched were mainly
located in the vicinity of Dwarka Expressway,
in the price range of INR 6,500 - 14,500 per
sq ft.
Construction activities remain slow due to the•
monsoon season, resulting in the completion
of few residential projects/ parts of projects
like “Palm Drive” by Emaar MGF on Golf
Course Extension Road and “Tulip Orange”
by Tulip Developer on Southern Peripheral
Road.
During the surveyed quarter, demand•
remained muted in both the primary and
secondary markets. Few developers started
offering various easy payment plans such as
subvention plan and EMI waiver plan to boost
the demand.
The limited activity in both the primary and•
secondary markets resulted in stable capital
and rental values across the city QoQ. The
lower sales volumes is attributed to the
high price points and the prevailing negative
economic sentiment.
This quarter, private equity firm ASK Property•
Investment Advisors has invested around INR
147 crore into ATS Group’s housing project
in Gurgaon located at Dwaraka - Gurgaon
Expressway.
Colliers View:• Golf Course Extension,
Sohna Road, Southern Peripheral Road and
Dwarka Expressway will remain the most
sought after micro markets. New sectors in
Sohna region have started witnessing investor
activities with the launch of few new projects
in this micro-market. Looking ahead, we
anticipate increased traction in the upcoming
festive season, with developers offering easy
payment plans.
Gurgaon
per sq.ft.
0
5,000
15,000
10,000
20,000
25,000
30,000
35,000
45,000
40,000
INRpersq.ft.INRpersq.ft.permonthINRPersq.ft.
3Q2008
3Q2009
1Q2009
1Q2010
3Q2010
1Q2012
3Q2012
1Q2013F
1Q2014F
3Q2013F
1Q2011
3Q2011
6,000
8,000
10,000
12,000
14,000
16,000
18,000
4,000
2,000
0
Golf Course
Extension Road
7,500 - 8,500
Sohna Region 3,500 - 4,800
Pataudi Road 4,500 - 5,500
New Gurgaon 3,500 - 4,500
80
60
40
20
0
GolfCourseRoad
Golf Course Road
SohnaRoad&Ext
Sohna Road & Ext
DLFPhaseI
DLF Phase I
SushantLok
Sushant Lok
NH-8
NH - 8
DLF Phase INH-8
Golf Course Road Sushant Lok
Sohna Road & Ext
SELECT NEW PROJECTS
DLF Crest Sector 42 DLF Ltd. 4Q 2017 14,500
Gurgaon Gateway Sector 112 TATA Housing 4Q 2017 10,500
Primera Sector 37D Ramprastha Group 4Q 2016 6,500
Vatika Expressway Plot Sector 88A Vatika Group 4Q 2015 6,600
Vatika Soverign Sector 87 Vatika Group 4Q 2017 8,000
Note:

2Q 2013 3Q 2013F
Capital Value
Rental Value
New Project
Construction Pace
noida
per sq.ft.
noida
During 2Q 2013, there was a decrease in•
new project launches, compared to previous
quarters. Most of the newly launched projects
were located in Sectors 75, 77 and 79, and
were priced in the range of INR 4,400 - 5,100
per sq ft.
During the same quarter, construction•
activities remained slow due to the rainy
season and not much supply added to the
market except for a few units in projects
such as Lotus Boulevard and Supertech 34
Pavilion.
Capital values in the secondary sales market•
witnessed marginal appreciation in sectors
located along the NOIDA Expressway while all
other micro markets recorded stable capital
values due to limited traction in both primary
and secondary market.
New projects with modern amenities were•
favored by tenants due to affordable rental.
Continuous addition of new supply kept the
rental values stable in almost all the micro
market.
During this quarter the NOIDA and Greater•
NOIDA authorities raised land rates, which
may indirectly impact investors and end-
users who are seeking residential investment
opportunities in these locations due to
increased cost. In NOIDA, allotment rates for
group housing, residential and institutional
properties have been raised by 15%, while
commercial and industrial land rates have
increased by 30% and 11.25% respectively.
Colliers View:• We anticipate increased
end-user activity in the festive season, with
developers offering attractive promotional
payment schemes like subvention and EMI
wavier plans. The capital values are expected
to remain stable in the coming few quarters
due to large inventory in pipeline.
1,500
3,000
0
4,500
6,000
10,500
9,000
7,500
12,000
3Q2009
1Q2010
3Q2012
1Q2013
3Q2013F
1Q2014F
1Q2011
3Q2010
1Q2012
3Q2011
12,000
10,500
9,000
7,500
6,000
4,500
3,000
1.500
0
NOIDA Expressway 3,800 - 5,500
Sector 71 to 83 4,500 - 5,800
40
30
20
10
0
Sector28,29,30
Sector 28, 29, 30
Sector92/93
Sector 92/93
Sector61,62.,63
Sector 61, 62., 63
Sector50
Sector 50
Sector44
Sector 44
Sector 61,62,63
Sector 92 / 93 Sector 28,29,30
Sector 50 Sector 44
INRPersq.ft.
Note:
SELECT NEW PROJECTS
Civitech Stadia Sector 79
Civitech Developers
Pvt. Ltd.
2Q 2016 4,800
Elite Golf Green Sector 79 HR Oracle Developers 4Q 2015 4,600
Griha Pravesh Sector 77
Griha Pravesh
Buildteck & Phadnis
Infrastructure
2Q 2014 5,100
White House- II Sector 75
Maxblis Constructions
Pvt. Ltd.
4Q 2015 4,500

SELECT NEW PROJECTS
Mandarin OMR Radiance Realty 4Q 2016 6,400
Sheltrex City GST Road Sheltrex 4Q 2016 2,060
Padmalaya Siruseri (OMR) Real Value Promoters 4Q 2016 3,200
Sai Enclave Arasankazhani (OMR) MMRF Realty 4Q 2015 4,000
The Point Guindy KSV Developers 4Q 2015 14,000
Vista Oceana Padur (OMR) MMRF Realty 4Q 2015 6,000
chennai
per sq.ft.
CHENNAI
In 2Q 2013, several new projects were•
launched in the city. Locations like Old
Mahabalipuram Road (OMR), Guindy and GST
Road saw maximum new launches. Projects
were priced in the range of INR 3,000 - 6,500
per sq ft.
This quarter the city witnessed completion•
of many mid-scale projects in micro-markets
like Besant Nagar, Shastri Nagar, Palavakkam,
Uthandi and Thiruvanmiyur.
Following last quarter’s capital value trend,•
the secondary sales market for premium
residential properties appreciated in the
range of 4 - 7% QoQ, in micro-markets such
as Nungambakkam, Adyar, Besant Nagar, T
Nagar Alwarpet / R A Puram and Velachery.
This was primarily because, new projects
were being launched at a higher price, and
there was an increase in the guideline rates
for these areas. However micro-markets
like Sholinganallur and Siruseri / Kazipattur
remained stable.
The residential rental market gained•
momentum during the quarter; however rents
remained stable across the city for premium
residential properties, except Adyar, where
rents increased by 9% QoQ.
The State Government has planned to build•
a 45 kilometre elevated road along the IT
corridor from Taramani to Mamallapuram.
This will further boost real estate activity in
the area between these two micro-markets.
COLLIERS VIEW:• In the last few quarters
Chennai’s residential market has witnessed
growth. The developing corridors, along with
OMR, will see an increase in capital values due
to high demand from the mid-end segment.
Looking ahead, capital values are expected to
increase moderately considering the demand
coming from both end-users and investors.
Adyar
AnnaNagar
Nungambakkam
Alwarpet/
RAPuram
Velachery
Sholinganallur
Siruseri/
Kazipattur
TNagar
Beasant
Nagar
BoatClub
6,000
2,000
10,000
18,000
14,000
22,000
26,000
30,000
Sholinganallur
Velachery
Alwarpet / R A Puram
T Nagar
Beasant Nagar
Adyar
Anna Nagar
Nungambakkam
Boat Club
Siruseri/ Kazipattur
Boat Club
Siruseri/ Kazipattur
Velachery
Sholinganallur
Anna Nagar
T Nagar
AdyarBeasant Nagar
Nugambakkam
Alwarpet / R A Puram
1Q2008
3Q2008
3Q2009
1Q2009
1Q2010
3Q2010
1Q2012
3Q2012
1Q2013F
3Q2013F
1Q2014F
1Q2011
3Q2011
25,000
21,000
17,000
13,000
9,000
5,000
1,000
Velachery 5,000 - 7,000
Sholinganallur 3,500 - 4,200
Siruseri/ Kazipattur 2,500 - 3,900
INRPersq.ft.
75
60
45
30
15
0
Note:
2Q 2013 3Q 2013F
Capital Value
Rental Value
New Project
Construction Pace

2Q 2013 3Q 2013F
Capital Value
Rental Value
New Project
Construction Pace
INDIA | august 2013 | RESIDENTIAL
bengaluru
SELECT NEW PROJECTS
Klassik Landmark Sarjapur Road Klassik Developers 4Q 2015 3,700
Prestige Sunrise Electronic City Prestige Developers 4Q 2017 3,900
Samruddhi Rthythm Hennur Samruddhi Developers 4Q 2016 3,450
SJR Palms Kudlugate SJR Developers 4Q 2016 4,200
Sobha Indraprstha Rajajinagar Sobha Developers 4Q 2016 4,200
Valmark Apas Hulimavu Valmark Developers 4Q 2015 6,500
per sq.ft.
BENGALURU (BANGALORE)
During 2Q 2013, micro-markets like Hulimavu,•
Hennur, Sarjapur Road, Rajajinagar, Kudlugate
and Electronic City saw the highest number of
new launches. Residential demand was driven
by both investors and end-users. Premium
residential projects were priced in the range
of INR 3,500 - 6,500 per sq ft.
In the surveyed quarter, Bengaluru witnessed•
the completion of various premium projects/
parts of projects including “RegencyFloradale”
by Ashed Properties at Lavelle Road, “Brigade
Sonata” by Brigade Group at Palace Road
and “Chaitanya Samarpan” by Chaitanya
Developers at Whitefield. Few other mid-range
projects were also completed on Sarjapur
Road and HMT Layout micro markets.
Capital values in the secondary sales markets•
remained stable, except for Cooke Town
where capital values increased by 2% QoQ,
due to limited supply.
Rents in micro-markets such as Airport Road,•
Bannerghatta Road and Whitefield increased in
the range of 2 - 8% QoQ. Most of the demand
in this segment came from employees of
the IT/ITeS sector. All other micro-markets
remained stable.
Duringthisquarter,theBangaloreMetropolitan•
Region Development Authority (BMRDA)
framed the draft master plan for Bengaluru.
The revised plan envisages a compact,
balanced and equitable urban growth pattern
for the city.
COLLIERS VIEW: The city’s residential market•
will continue to remain active, as construction
of various residential projects is in full swing
and premium and mid-range projects were
launched across various micro-markets. We
anticipate that residential prices will remain
stable in the near future due to the huge
supply in the pipeline.
4,000
0
8,000
16,000
12,000
20,000
24,000
28,000
32,000
25,000
20,000
15,000
10,000
5,000
0
Airport Road 5,000 - 6,000
Bannerghatta Road 4,200 - 6,000
Whitefield 4,400 - 6,700
Yelahanka 3,800 - 6,000
Yelahanka
Yelahanka
BannerghattaRoad
Whitefield (Appts)
AirportRoad
AirportRoad
Koramangala
Whitefield
Bannerghatta Road
Jayanagar
Indiranagar
CookeTown
Airport Road
Koramangala
Palace Orchard
Indiranagar
Jayanagar
PalaceOrchard
Cooke Town
Central
Central
80
60
40
20
0
1Q2008
3Q2008
1Q2010
1Q2009
3Q2009
3Q2010
1Q2011
3Q2012
1Q2013
3Q2013F
1Q2014F
1Q2012
3Q2011
Central
Yelahanka
Koramangala
Indiranagar
Jayanagar
Bannerghatta Road
Palace Orchard
Cooke Town
Airport Road
Whitefield
INRPersq.ft.
Note:

2Q 2013 3Q 2013F
Capital Value
Rental Value
New Project
Construction Pace
Kolkata
SELECT NEW PROJECTS
Godrej Platinum Alipore Godrej Group 4Q 2016 19,000
Greenfield Oasis Bakhrahat Road Bengal Greenfield 4Q 2016 2,350
Kings Residency Rajarhat Vibgyor Group 4Q 2016 3,000
Modello Highs E M Bypass Tirupati Awas 4Q 2017 4,800
Mounthill Fusion Rajarhat Mounthill Realty 4Q 2016 3,750
Symphony Tower Ho Chi Minh Sarani Mainaak Group 4Q 2016 3,600
Note:
per sq.ft.
kolkata
During 2Q 2013, Kolkata’s residential market•
saw new launches in micro-markets like EM
Bypass, Bakhrahat Road, Rajarhat and Alipore.
Most of these projects were launched in the
mid-range, and were priced from INR 2,300
- 4,800 per sq ft, except “Godrej Platinum”
by Godrej, which was priced at INR 19,000
per sq ft.
During the same quarter, developers•
accelerated their construction activities,
resulting in the completion of various projects
or project phases, including “Purti Bloom” and
“Purti Flowers” by Purti Group at Taratala,
“Meera Gardens” by Vibgyor Housing at
Madhyamgram and “Manjuri Enclave” by
Sunirman Infrastructure at Narendrapur.
Capital values in the premium residential•
market increased this quarter across all
micro-markets in the range of 3 - 13%.
However, micro-markets in the peripheral
locations remained stable.
Rental values continued to remain stable due to•
weaker economic sentiments however, central
locations witnessed marginal appreciation due
to consistent demand and limited availability.
Colliers View:• Residential sales in
peripheral locations are showing signs of
growth due to the lower ticket size. In view of
ceiling on acquisition of large tracts of land we
anticipate a slowdown in the new launches of
the projects in coming quarters. Capital and
rental values are expected to remain stable
across the city, while South Kolkata may
experience a marginal increase due to the
limited availability of properties.
3,000
1,000
7,000
5,000
11,000
9,000
13,000
15,000
17,000
19,000
21,000
INRpersq.ft.
2,000
4,000
0
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Tollygunge 3,600 - 4,800
Behela 2,900 - 3,700
Salt Lake 4,000 - 5,500
EM Bypass 4,000 - 7,000
New Town -Rajarhat 3,200 - 4,600
Alipore
Bhawanipur
Ballygunge
PA Shah Road
Bhawanipur
Tollygunge
EMBypass
Loudon Street
PAShahRoad
Behela
LoudonStreet
Alipore
NewTown-Rajarhat
EM Bypass
SaltLake
Ballygunge
Tollygunge
Salt Lake
VIPRoad
VIP Road
Behela
New Town Rajarhat
Bhawanipur
EM Bypass
Ballygunge
Behela
Tollygunge
P A Shah Road
New Town - Rajarhat
Loudon street
Alipore
VIP Road
Salt Lake
1Q2008
3Q2008
1Q2010
1Q2009
3Q2009
3Q2010
1Q2011
3Q2012
1Q2013
3Q2013F
1Q2014F
1Q2012
3Q2011
INRPersq.ft.
50
40
30
20
10
0
INRpersq.ft.permonth
INDIA | august 2013 | residential

2Q 2013 3Q 2013F
Capital Value
Rental Value
New Project
Construction Pace
pune
SELECT NEW PROJECTS
Artemis Sinhagad Road Calyx Group 1Q 2016 6,000
Kumar Pinakin Baner Kumar Properties 2Q 2015 5,500
Kunal Aspiree Balewadi Kunal Group 2Q 2016 5,600
Kunal Iconia Mamurdi Kunal Group 4Q 2016 3,700
Le Reve Kharadi Ami Estates LLP 2Q 2014 5,900
Marvel Aquanas Kharadi Marvel Realtors 2Q 2015 5,750
Note:
per sq.ft.
PUNE
In 2Q 2013, fewer residential projects were•
launched compared with the previous quarter;
most of the launched projects were located
in areas such as Baner-Balewadi, Bavdhan,
Kondhwa, Kharadi, and Wakad. New launches
were in the an average price band of INR
4,000 - 7,000 per sq ft
This quarter continued to register a slowdown•
in construction activities, further delaying
completion of under-construction projects
and ready possessions.
Similar to the previous quarter, capital values•
in Pune remained stable in most micro-
markets. However, the NIBM-Undri-Kothrud,
Pimpri Chinchwad-Chakan and Magarpatta-
Hadapsar micro-markets registered an
average increase of 2 - 6% and Baner-
Pashan-Hinjewadi-Wakad and Bavdhan-
Kothrud-Warje micro-markets, prices were
increased by around 10% QoQ.
During 2Q, rental values remained stable in•
almost all the micro-markets in Pune, with
marginal increase in prime areas in the north-
west and north-east micro-markets.
During this quarter, the Union Ministry of•
Urban Development has revised Pune’s metro
rail project which will commence construction
between the first corridor of Pimpri
Chinchwad and Swargate and the second
corridor between Vanaz and Ramwadi, with a
total length of 31.5 kilometres.
COLLIERS VIEW: Pune’s residential market•
continues to witnessed end-user as well as
investor demand in affordable residential
projects. NH4 Bypass will remain the location
of interest as it is emerging as preferred
location from mid-range buyers. We anticipate
marginal appreciation in capital values in the
coming quarter.
1,000
3,000
7,000
5,000
9,000
13,000
11,000
15,000
INRpersq.ft.
11,000
10,000
8,000
9,000
7,000
6,000
5,000
4,000
3,000
2,000
Kalyani Nagar/Viman
Nagar/Kharadi
5,000 - 12,000
Baner/Hinjewadi/Wakad/
Pashan
3,800 - 6,000
Kothrud/Bavdhan/Wajre 3,800 - 6,000
NIBM/Undri/Kondhwa 3,800 - 5,000
Pimpri/Chinchwad/Chakan 2,500 - 4,500
KalyaniNagar/Vi-
manNagar/Kharadi
Bhawanipur
Kalyani Nagar/Viman Nagar/
Kharadi Bhawanipur
Deccan/Camp/
BoatClub
Deccan/Camp
/Boat Club
Baner/Hinjewadi/
Wakad/Pashan
Baner/Hinjewadi/Wakad/Pashan
Magarpatta/Hadapsar
Magarpatta/
Hadapsar
NIBM/Undri/Kondhwa
NIBM/Undri/
Kondhwa
Kothrud/Bavdhan/
Wajre
Kothrud/ Bavdhan/ Wajre
Pimpri/Chinchwad/
Chakan
Pimpri/Chinchwad/
Chakan
30
25
20
15
10
5
0
1Q2009
3Q2009
1Q2010
3Q2010
1Q2011
3Q2011
3Q2012F
1Q2014F
1Q2013
3Q2012
1Q2012
Kalyani Nagar/Viman Nagar/Kharadi
Kothrud/Bavdhan/Wajre
NIBM/Undri/Kondhwa
Pimpri/Chinchwad/Chakan
Deccan/Camp/Boat Club/Central Pune
Magarpatta/Hadapsar
Baner/Hinjewadi/Wakad/Pashan
INRPersq.ft.INRpersq.ft.permonth
INDIA | august 2013 | RESIDENTIAL

INDIA | august 2013 | residential
Mumbai
The high-end residential real estate markets in Mumbai include Malabar Hill, Altamount Road, Carmichael Road, Napean Sea Road, Breach Candy,
Colaba, Cuffe Parade, Prabhadevi, Worli, Bandra, Khar, Santacruz, Juhu and Powai.
Delhi
The prime residential areas in Delhi are in the South region and comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan and Central Delhi
locations. These areas enjoy proximity to embassies, the airport and central commercial areas - Connaught Place.
Gurgaon
The prime residential locations of Gurgaon include Golf Course Road, DLF Phase I, Sushant Lok and Sohna Road. The Delhi- Jaipur Highway (NH-8)
is also emerging as a preferred residential location owing to its proximity to the national capital.
NOIDA
NOIDA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and Taj Express Highway.
Chennai
The prime residential areas in Chennai include Thiruvanmiyur, Valmiki Nagar and Besant Nagar, R.A Puram, Mylapore and Adyar in South Chennai,
Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, T. Nagar in Central Chennai; and Anna Nagar, Kilpauk in North West Chennai.
Bengaluru (Bangalore)
The residential market of Bengaluru comprises both apartments and independent residences. Currently, high-end residential developments are
mainly concentrated along the CBD, and Eastern and South precincts of the city. Recently, Northern Bengaluru has also witnessed a spree of realty
activity facilitated by the new International Airport at Devanhalli.
Kolkata
The prime residential areas in Kolkata include PA Shah Road, Tollygunge and Bhawanipur in South Kolkata, Alipore and Behala in South-west Kolkata,
Loudon Street and Ballygunge in Central Kolkata; and Salt Lake, EM Bypass and VIP Road in North Kolkata.
Pune
The prime residential areas in Pune include Kalyani Nagar, Viman Nagar, Boat Club Road, NIBM Road, Magarpatta, Hadapsar, Koregaon Park. Recently,
increased activities has been witnessed in Pimpri-Chinchwad, Baner-Pashan and Kondhwa.
Residential SUBMARKETS
CITY BAROMETERS
Increasing as compared to previous quarter
Decreasing as compared to previous quarter
Remained stable from previous quarter

Colliers International (India) provides property services to property Investors and Occupiers. We
deliver customised service solutions utilising local and global knowledge in partnership with our
clients via our property Investment and Occupier service lines. These service lines include - Office
Services, Facility Management, Project Management, Residential Services, Investment Services
and Valuation & Advisory Services.
www.colliers.com/india
For national Residential Services related queries please contact:
Poonam Mahtani, National Director
Residential Services & Knowledge Systems
Poonam.mahtani@colliers.com
Tel: +91 22 4050 4551
This book is printed on 100% Recyclable paper
INDIA | August 2013
AUTHORS
Amit Oberoi MRICS
National Director, Valuation & Advisory; Research
Email: Amit.oberoi@colliers.com
Surabhi Arora MRICS
Associate Director, Research
Email: Surabhi.arora@colliers.com
Sachin Sharma
Assistant Manager, Research
Email: Sachin.sharma@colliers.com
Heliana Mano
Assistant Manager, Research
Email: Heliana.mano@colliers.com
For general queries and feedback :
India.Research@colliers.com
Tel: +91 124 456 7580
This report and other research materials may be found on
our website at www.colliers.com/India. Questions related
to information herein should be directed to the Research
Department at the number indicated above. This document
has been prepared by Colliers International for advertising
and general information only. Colliers International makes
no guarantees, representations or warranties of any kind,
expressed or implied, regarding the information including,
but not limited to, warranties of content, accuracy and
reliability. Any interested party should undertake their
own inquiries as to the accuracy of the information.
Colliers International excludes unequivocally all inferred
or implied terms, conditions and warranties arising out
of this document and excludes all liability for loss and
damages arising there from.
© Copyright 2012 - 2013 All Rights Reserved.
482 offices in 62 countries on 6 continents
United States: 140
Canada: 42
Latin America: 20
Asia Pacific: 195
EMEA: 85
$2.0 billion in annual revenue
1.1 billion square feet under management
Over 13,500 + professionals
Recent Reports :
GLOBAL OFFICE INDIA OFFICE INDIA RESIDENTIAL APAC OFFICE GLOBAL INDUSTRIAL INDIAN REAL ESTATE UNPLUGGED
OFFICE
PROPERTY MARKET OVERVIEW
INDIA
QUARTERLY UPDATE | JUlY | 2013
Accelerating success. Accelerating success.
INDIA
QUARTERLY UPDATE | MAY | 2013
Residential Property
Market Overview ASIA PACIFIC
OFFICE MARKET OVERVIEW
1Q 2013
Trade Flows
Bolster Industrial
Demand in Asia
and the Americas
> Despite anemic U.S. job growth, demand for North American industrial
warehouse space and modern distribution centers remains strong.
In Q1 2013, the North American vacancy rate declined for the eighth
straight quarter, down 20 basis points to 8.20%. Canada’s vacancy rate
stands at 4.13%.
> Thanks in part to a recent drop in exports to the United States, Mexico
has seen slowing economic growth. In Q1 2013, several Mexico City
industrial warehouses were vacated, slightly increasing the vacancy
rate to 3.49%.
> While occupier demand for industrial property in Brazil remains strong,
the market now appears to have stabilized into a more rational mode of
sustained growth. São Paulo has seen positive net absorption, in spite
of the final tally in 2012 showing a 23% decrease over the previous year.
> Demand for Beijing’s logistics properties remained as strong as it has
been since 2011. Rents grew by 11.41% year-over-year as of the end of
Q1 2013. Shanghai’s industrial sector remained stable, with average
asking rents for ground floor premises of high quality facilities in both
the logistics and workshop sectors unchanged.
> In Hong Kong, high quality warehouse buildings are nearly fully
occupied. Those users seeking to expand or rationalize their real estate
costs have had to consider the option of split operations in lower
quality buildings.
> Indian economic growth remained sluggish through the end of 2012,
however we expect industrial activity to improve, thanks to recent
government actions. These include the government-proposed National
Investment and Manufacturing Zones and the newly approved 51%
foreign direct investment in multi-brand retail trading.
Global | Industrial | Midyear 2013
HIGHLIGHTS
* December 2013 Rent (USD/PSF/YR)
** Local currency
Global Top 10 Industrial Warehouse Rents*
6-Month Change in Rent**
LONDON (HEATHROW)
HONG KONG
SINGAPORE
TOKYO
OSLO
GENEVA
PARIS
HELSINKI
MINSK
SYDNEY
21.95
21.83
21.02
20.61
20.04
16.20
14.70
14.70
13.23
13.23
MIN
SK
OSL
O
SIN
GAP
ORE
SYD
NEY
11.1%
3.9%
2.2%
12.5%
PARIS
HELSINKI
GENEVA
TOKYO
HONG KONG
LONDON
- (HEATHROW)
LEGEND
EMEA
APAC
THE INTERNATIONAL INDIAN May - June 201344
CONTENTS
45 Indian Real
Estate Unplugged
46 Gurgaon
48 NOIDA
52 Mumbai
53 Pune
54 Bengaluru
55 Chennai
56 Hyderabad
56 Kochi
57 Maisuru
57 Thiruvananthapuram
58 Current Market Prices
61 Do’s and Don’ts of Real
Estate Investments
62 Dubai Residential Market Hots up
TheSpring-Summer
REALESTATEFOCUS
2013 OUTLOOK
GLOBAL OFFICE
WWW.COLLIERS.COM
2012 | OFFICE
The global economy has seen recent headwinds from the smoldering eurozone debt crisis, slowing growth in
China’s economy and the forecasted American fiscal cliff. Yet our overall global view of office real estate is
moderately positive. While many large occupiers have taken a wait-and-see attitude toward the global economy,
others are leasing up much-needed space to accommodate expanding operations. Quality office buildings in
major global cities are seeing consistent demand from both occupiers and investors.
U.S. is showing gradually lowering vacancy rates. Canada’s office market continues to perform well
and is seeing notable development activity in major markets. Office absorption has been largely driven
by Intellectual Capital, Energy and Education (ICEE) sectors.
Mexico and Brazil report slightly higher vacancies, due to a combination of speculative construction and
slackening economic growth. Yet São Paulo still boasts the ultra-low vacancy rate of 3.3%.
Average Central Business District (CBD) office rents remained broadly unchanged across key EMEA
markets, but this has been a result of limited supply more than increased demand. Business confidence
across Europe is firmly negative, which does not bode well for the next year of activity.
China’s slowing growth has dampened office demand in some Asian markets. Beijing’s office market
remains healthy, but appeared lackluster when compared to an extremely active 2011.
GLOBAL OFFICE MARKETS SHOW
STABILITY IN THE FACE OF HEADWINDS
GLOBAL CAPITALIZATION RATES /
PRIME YIELDS: 10 LOWEST CITIES
MARKET
(Ranked by
June 2012)
JUNE
2012
DEC
2011
JUNE
2011
Taipei �.�� .�� .��
Hong Kong �.�� .�� .��
Vienna �.�� .�� .��
Singapore �.�� .�� .��
London - West End �.�� .�� .��
Zurich �.�� .�� .��
Geneva �.�� .�� .��
Beijing �.�� .�� .��
Paris �.�� .�� .��
Munich �.�� .�� .��
Tokyo �.�� .�� .��
GLOBAL OFFICE OCCUPANCY COSTS:
TOP 10 CITIES
MARKET
(Ranked by
June 2012)
JUNE
2012
DEC
2011
JUNE
2011
Hong Kong ��.�� .�� .��
London – West End ��.�� .�� .��
Tokyo* ��.�� .�� .��
Rio de Janeiro ��.�� .�� .��
Paris ��.�� .�� .��
Moscow ��.�� .�� .��
London – City ��.�� .�� .��
Perth ��.�� .�� .��
Geneva ��.�� .�� .��
São Paulo ��.�� .�� .��
CBD CAP RATE (%)
CLASS A / NET RENT (USD/SF/YR)
10.25
9.00
9.00
4.90
4.75
4.70
4.00
4.00
3.90
3.50
2.67
2.50
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0
Rio de Janeiro
Mexico City
Buenos Aires
New York, NY - Midtown South Manhattan
Vancouver, BC
New York, NY - Midtown Manhattan
London - West End
Zurich
Singapore
Vienna
Hong Kong
Taipei
Asia Pacific
EMEA
North America
Latin America
TOP THREE MARKETS BY REGION: JUNE 2012 CAP RATE (%)
*Tokyo rents listed are gross rents.
Mumbai : Vaibhav Kumar, Office Director
Vaibhav.kumar@colliers.com
IndiaBulls Finance Centre, 1701-A, 17th Floor, Tower 3, Elphinstone Mills,
Senapati Bapat Marg, Mumbai, India - 400 013.
Tel : +91 22 4050 4527, fax : +91 22 2351 4272
Delhi NCR : Ajay Rakheja, Office Director
Ajay.rakheja@colliers.com
New Delhi : Statesman House, 4th Floor, Barakhamba Road, Connaught Place,
New Delhi, India - 110001
Tel : +91 11 3044 6423, fax : +91 11 3044 6500
Gurgaon : Technopolis Building, 1st floor, DLF Golf Course Main Road, Sector 54, Gurgaon,
India - 122002
Tel : +91 124 456 7500, fax : +91 124 456 7502
Bengaluru : Goutam Chakraborthy, Office Director
Goutam.chakraborthy@colliers.com
Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru,
India - 560 042
Tel : +91 80 4079 5500, fax : +91 80 4112 3131
Pune : Suresh Castellino, Office Director
Suresh.castellino@colliers.com
Hotel Le Meridian, 101, R.B.M. Road, Pune, India - 411 001
Tel : +91 20 4120 6438, fax : +91 20 4120 6434
Chennai : Kaushik Reddy, Office Director
Kaushik.reddy@colliers.com
Heavitree Complex, Unit 1C, 1st floor, 23, Spurtank Road, Chetpet, Chennai,
India - 600 031
Tel : +91 44 2836 1064, fax : +91 44 2836 1377
Kolkata : Soumya Mukherjee , Office Director
Soumya.mukherjee@colliers.com
Infinity Business Centre, Infinity Benchmark, Room No 13, Level 18, Plot G - 1,
Block EP & GP, Salt Lake Sector V, Kolkata - 700 091 West Bengal, India
Tel : +91 33 2357 6501, fax : +91 33 2357 6502
Colliers International1 www.colliers.com/india
Impact on Real Estate I Neutral
THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATE
SECTOR ARE AS FOLLOWS:
1Q 2013 | RESEARCH
Source: www.bseindia.com | Feb 28, 2013
Company Change (%)
BSE SENSEX -1.52
-2.72
-2.05
-3.54
-0.27
-2.97
-5.62
0.23
-7.51
-2.12
-4.00
-0.69
-2.93
-0.77
-0.04
-0.99
-7.95
Realty Index
Anant Raj Ltd.
D B Realty Ltd.
DLF Ltd.
Godrej Properties Ltd.
HDIL
Hubtown Ltd.
Indiabulls Real Estate
Mahindra Lifespace
Orbit Corporation Ltd.
Parsvnath Developers
Peninsula Land Ltd.
The Phoenix Mills Ltd.
Sobha Developers Ltd.
Sunteck Realty Ltd.
Unitech Ltd.
UNION BUDGET 2013 - A SNEAK PREVIEW
Honorable Finance Minister P. Chidambaram started his budget speech 2013-14
with the pretext of slowed global economic growth in 2012. He acknowledged
that the Indian Economy is challenged and mentioned that the Indian economy is
constrained because of a high fiscal deficit; its reliance on foreign inflows to
finance the current account deficit; decreased savings and lower investment; a
tight monetary policy to contain inflation and strong external headwinds. He
assured that the budget spelled out measures for each of the above mentioned
issues. The agenda for the Union Budget 2013-14 is set for ‘higher growth
leading to inclusive and sustainable development’. The finance minister
projected the economy to grow by 4.8% in the next fiscal down from 5.5% in
2012-13.
The real estate sector had high hopes this year from the Budget. However, the
budget remained silent on most of the major issues such as enactment of the Real
Estate (Regulation and Development) Bill, revision of Land Bill, granting industry
status to the sector or infrastructure status to the much ailing affordable housing
sector etc. None the less, there are a few small measures that have been taken for
the real estate industry in this budget.
1% TDS on value of the transfer of immovable properties where the consideration
exceeds INR 50 lakh; No TDS for agricultural land transfer;
Impact: This move would help to increase the much needed transparency in the
real estate transactions. The provision of deducting 1% as TDS will improve the
reporting of such transactions and improve the government revenue from capital
gain taxes arising from such transactions.
Increase in excise duty rate on marble from INR 30 per sq. meter to INR 60 per sq.
meter;
Impact: The increase in excise duty rate on marble will affect the sector by
increasing in the overall construction cost. This impact will however be minor
considering the percentage of cost allocated to this particular construction material
and the alternates available. The impact will probably be felt more in the
luxury residential and hospitality construction sectors.
iNDIA bUDGET 2012-13

India Residential Property Market Overview August 2013

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