6. The reality check; where do we stand
today?
SALES
• 13%
lower than the
5 half yearly
average
• 36%
lower than the
peak in H1 2011
• 23%
higher than H1
2015
LAUNCHES
• 50%
lower than the
5 half yearly
average
• 64%
lower than the
peak in H1 2012
• 29%
higher than H1
2015
8. Transactions follow sentiments
FICCI-KNIGHT FRANK REAL SENTIMENT INDEX OF Q1 2016 HAD
PREDICTED THIS REVIVAL; FALLING SENTIMENTS MOVE UP
AFTER SIX CONSECUTIVE QUARTERS
71
66
64
62
59
58
67
45
50
55
60
65
70
75
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
FUTURE SCORE
9. The enabling factors for turnaround
1 Real Estate Regulatory
Authority a reality
2
New Draft Development
Plan 2034 released
3 Robust office demand 4 Enhanced infrastructure
5 Right sizing of property
10. Growth story to continue
In 2016, we forecast a
16%
growth in sales over 2015
15. KEY TAKEAWAYS
MID AND
BUDGET
SEGMENTS
LEAD THE WAY;
PREMIUM
MARKETS YET
TO PICK UP
GROWTH
STORY TO
FURTHER GAIN
STRENGTH IN
H2 2016; SALES
IN 2016 TO BE
16 PER CENT
MORE THAN
2015
UNSOLD
INVENTORY
WENT DOWN
BY 20%
DURING THE
LAST 2
YEARS
18. Y-O-Y
Transactions
up by 51% in
H1 2016;
highest since
H1 2013
Y-O-Y
Completions
up by 115%
in H1 2016;
highest since
H1 2012
Reality check in H1 2016
20. SBD West and Central Mumbai lead the way
BUSINESS DISTRICT WISE TRANSACTIONS
0.48
0.44
0.52
0.87
0.05
0.18
0.53
0.51
0.78
1.32
0.09
0.57
11% 16%
50% 52%
93%
228%
0%
50%
100%
150%
200%
250%
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
SBD Central BKC & Off-BKC PBD SBD West CBD & Off-CBD Central Mumbai
Mnsqft
H1 2015 H1 2016 Change (RHS)
21. Dearth of supply in BKC & off BKC and Central
Mumbai pushes growth drivers to peripheral and
suburban markets
PROJECT COMPLETIONS BY BUSINESS DISTRICT
- -
0.4
0.5 0.5
0.8
- - 0.1
1.9
1.0
2.0
0.0
0.5
1.0
1.5
2.0
2.5
BKC & Off-
BKC
CBD & Off-
CBD
Central
Mumbai
PBD SBD Central SBD West
Mnsqft
Project Completions
H1 2015 H1 2016
282% 137%
85%
22. Single digit vacancy in prime office markets
OVERALL
VACANCY
DROPS TO
20%
IN H1 2016
FROM
22%
IN H1 2015
SINGLE DIGIT
VACANCY IN
CENTRAL
MUMBAI (2%)
AND BKC (5%) -
EXPECTED
SUPPLY KEEPS
RENTALS IN
CHECK
VACANCY IN
EXCESS OF
20%
IN SBD WEST
AND PBD
23. THE ROAD AHEAD
IN 2016, WE EXPECT NEW COMPLETIONS
TO GO UP BY 97% AND TRANSACTIONS
TO MOVE UP BY 24%, OVER 2015
24. KEY TAKEAWAYS
ACTION
LARGELY IN
PERIPHERAL
MARKETS
VACANCY
IN SINGLE
DIGITS IN
CENTRAL
MUMBAI
AND BKC
SHORTAGE OF
QUALITY
SPACE A
CHALLENGE
FOR BFSI AND
CONSULTING
SECTOR
RENTALS IN
CHECK EVEN
IN CENTRAL
MUMBAI AND
BKC IN
ANTICIPATION
OF SUPPLY IN
SHORT TERM
25. SINCE GFC, 2016 POISED TO BE
THE BEST YEAR
FOR MMR OFFICE MARKET