India Residential Property Market Overview May 2013

Residential Property Market Overview
INDIA
QUARTERLY UPDATE | MAY | 2013
Accelerating success.
INDIA | May 2013 | residential
research India RESIDENTIAL & forecast market Report
Research SYDNEY CENTRAL & forecast BUSINESS report DISTRICT
MACRO ECONOMIC OVERVIEW

As per the latest Reserve Bank of India (RBI) projections, the GDP growth rate was recorded at 4.5% for the third quarter (October - December 2012), the lowest in the last decade. The revised projection from the RBI for FY 2013 - 14 stands at 5.7%. The provisional Wholesale Price Index (WPI) declined to 5.96% for March 2013, as compared to 7.96% for the corresponding month in the previous year. This decline was primarily due to the decrease in food price inflation. The central bank reduced the repo rate by 25 basis points from 7.75 to 7.50% in April 2013 to induce much needed liquidity in the market. Subsequently, a few nationalised and private banks such as the State Bank of India, Canara Bank, Housing Development Finance Corporation Ltd (HDFC) and Axis Bank reduced their home loan rates marginally in the range of 5 to 25 basis points. The Government of India, in its latest Union Budget, has allocated INR 2,000 Crore for creation of an Urban Housing Fund at the National Housing Bank. The fund has been created to provide housing finance at competitive rates in urban areas. COLLIERS VIEW: The residential market gained traction in cities such as Mumbai, Bangalore, Kolkata and Pune, though the NCR market and Chennai recorded steady growth during the quarter. Projects in affordable segments with the right price points witnessed high absorption due to an overwhelming response from both investors and end users. Capital values of premium residential properties in major cities of India displayed a marginal increase in the range of 2 to 7% QoQ. We anticipate increased activity in the primary sales market in the coming quarters with numerous new launches across the cities.
ECONOMIC BAROMETER
Apr-12 REPO RATE REVERSE REPO RATE CRR INFLATION Home Loan Rate
2
Apr-13 7.50% 6.50% 4.00% 5.96% 9.95%

1
8.00% 7.00% 4.75% 7.50% 11.00%
Return on Alternative Investments

Apr-12 Apr-13 YoY % Change Gold SILVER Fixed Deposit EQUITY REALTY INDEX
4 3
ECONOMIC INDICATORS
12.0 11.0 10.0 9.0
28,423 55,582 9.00% 17,151 1,781
26,450 45,117 8.25% 18,358 1,803
-6.94% -18.83% -8.33% 7.04%

In Percentage
8.0 7.0 6.0 5.0 4.0 3.0
1.24%
jun 08
Aug08
Oct08
Dec08
Feb 09
Apr 09
Jun 09
Aug09
Oct09
Dec09
Feb10
Apr10
Jun10
Aug10
Oct10
Dec10
Feb11
Apr11
Jun11
Aug11
Dec11
Feb12
Apr12
Jun12
Aug12
Oct12
Dec12
Feb13
-1.0 -2.0
Apr 08
Repo Rate
Cash Reserve Ratio
Wholesale Price Index
Source: Goverment of India, Colliers International India Research
www.colliers.com
Apr 13
As of March, 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.
1
2.0 1.0 0.0 Oct11
INDIA | May 2013 | residential MUMBAI

During 1Q 2013, the citys residential market witnessed launches of premium residential projects in micro-markets like Parel, Wadala and Santacruz, priced in the range of INR 16,000 - 20,000 per sq ft. A number of redevelopment projects were also launched in the western suburbs. Demand in the primary market increased during the quarter. The project launched witnessed good absorption due to right price points. Moreover, the 20-80 payment plans adopted by developers like Lodha Group, Bombay Dyeing and Ekta group got buyer interest due to ease of payment. Capital values for premium residential properties in the central and western suburbs witnessed a marginal increase QoQ in the range of 1-3%, while capital values remained stable in prime locations in south Mumbai. Rental values remained under marginal pressure and recorded a 1-4% decrease QoQ in almost all micro-markets, except for locations such as Colaba, Cuffe Parade, Bandra, Santacruz and Juhu. The Mumbai Metropolitan Region Development Authority (MMRDA) has planned to build a 1.6 km elevated road from the Bandra-Kurla Complex to the Eastern Express Highway. Colliers View: The primary sales market continued to observe the end user demand. The festive season of Gudi Padwa also helped to revive the overall sentiments in the residential market. In medium term we anticipate increase in activity in the primary sales market with numerous launches in line however, resale market will continue to show a signs of stagnancy because of high price points.
80,000 70,000 60,000 INR per sq.ft. 50,000 40,000 30,000 20,000 10,000 0 Malabar Hill, Altamount Road, Carmichael Road Colaba, Cuffe Parade Khar Santacruz Prabhadevi Breach Candy, Napeansea Road, Peddar Road Andheri Worli Bandra Juhu Powai 3Q2013F
Andheri Worli Santacruz
AVERAGE CAPITAL VALUE RANGE
MumBAI
AVERAGE RENTAL VALUE

Malabar Hill, Altamount Road, Carmichael Road
CITY OFFICE BAROMETER

1Q 2012
Capital Value Rental Value New Project Construction Pace
200
2Q 2013
Powai
Breach Candy, Napeansea Road, Peddar Road
150 100 50 0
Juhu Worli
INVESTMENT OPPORTUNITIES
Micro Market Thane-Kalyan Navi Mumbai Virar- Boisar Ongoing Price (P.S.F) 4,000 - 8,000 3,500 - 7,500 3,000 - 6,000
INR per sq.ft. per month
Andheri
Colaba, Cuffe Parade
Santacruz
Prabhadevi
Khar
Bandra
AVERAGE CAPITAL VALUE TRENDS

80,000 70,000 60,000 50,000 INR Per sq.ft. 40,000 30,000
Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft.
20,000 10,000 0 1Q2010 3Q2013F 1Q2009 1Q2011 1Q2012 1Q2008 3Q2008 3Q2009 3Q2010 3Q2012 3Q2011 1Q2013
Powai Khar Prabhadevi Breach Candy, Napeansea Road, Peddar Road
Colaba, Cuffe Parade Bandra Juhu Malabar Hill, Altamount Road, Carmichael Road
Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis.
KEY NEW PROJECTS Project Name

Alpine Sevens Prithvii Western Heights Location Kandivali Andheri east Ghatkopar west Andheri West Developer Name SD Corp Kanakia spaces Rohan Lifescapes Adani Group Tentative Possession* 4Q 2015 4Q 2016 4Q 2016 4Q 2016 Rate (Per Sq.ft.)** 11,150 12,500 12,000 16,000
Note: * As mentioned by developer ** Base selling price as quoted by developer
Colliers International |
p. 3
INDIA | May 2013 | residential delhI

120,000

105,000 90,000 INR per sq.ft. 75,000 60,000 45,000 30,000 15,000 0 Golf Links, Jor Bagh, Sunder Nagar Panchashila, Anandlok, Niti Bagh, SDA Shanti Niketan, Westend Prithviraj Road, Aurangzeb Road Friends Colony, Maharani Bagh Greater Kailash I & II, South Extension Chanakya Puri Shanti Niketan, Westend Chanakya Puri Anand Niketan, Vasant Vihar 3Q2013F 1Q2014F
In 1Q 2013, limited supply was added to the citys premium residential inventory. A few small-scale redevelopment projects were ready for possession in locations like Vasant Vihar, Anand Niketan, Shanti Niketan and Defence Colony. Capital values for premium residential properties appreciated in the range of 2-7% QoQ in micro-markets like Chanakyapuri, Friends Colony and Maharani Bagh. The rest of the micro-markets remained stable.
delhi

1Q 2013
2Q 2013
Rental values for premium residential properties remained stable with marginal downward pressure in micro-markets like Shanti Niketan, Westend, Panchashila, Anand lok, Niti Bagh, SDA, Greater Kailash I and II, South Extension, Anand Niketan and Vasant Vihar. The Delhi Development Authority (DDA) has approved its land pooling policy, which allows developers or land owners to pool their land to develop new areas. The developer or owner is required to surrender a stipulated portion of their land to the DDA for infrastructure development, as well as for green and open space. The policy also mandates the retention of a portion of land for economically weaker sections. Colliers View: Developers are adopting a wait-and-watch attitude in view of the new master plan, which is anticipated to facilitate vertical growth in the city and introduce additional new supply in the long-term. Moreover, the future phases of the Delhi Metro project, and other infrastructure developments across the city, will provide a boost to the real estate sector.

Prithviraj Road, Aurangzeb Road
200
Anand Niketan, Vasant Vihar
160 120 80 40
Greater Kailash I & II, South Extension
Golf Links, Jor Bagh, Sunder Nagar
Friends Colony, Maharani Bagh Panchashila, Anandlok, Niti Bagh, SDA

100,000 90,000 80,000 70,000 60,000 INR Per sq.ft. 50,000 40,000 30,000 20,000 10,000 3Q2012 1Q2013F 1Q2009 0
3Q2008
3Q2010
1Q2008
1Q2010
3Q2011
1Q2011
3Q2009
1Q2012
Golf Links, Jor Bagh, Sunder Nagar Chanakya Puri Panchashila, Anandlok, Niti Bagh, SDA Greater Kailash I & II, South Extension
Prithviraj Road, Aurangzeb Road Shanti Niketan, Westend Friends Colony, Maharani Bagh Anand Niketan, Vasant Vihar
KEY ONGOING PROJECTS Project Name

Capital Greens Castlewood Kings Court Queens Court Winter Hills Location Shivaji Marg Okhla Greater Kailash- II Greater Kailash- II Dwaraka Morh Developer Name DLF Ltd. Indiabulls Ltd. DLF Ltd. DLF Ltd. Umang Realtech Tentative Possession* 2Q 2015 4Q 2013 1Q 2015 1Q 2015 4Q 2013 Rate (Per Sq.ft.)** 14,000 12,800 36,000 36,000 8,750
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| Colliers International
INDIA | May 2013 | residential GURGAON

In 1Q 2013, a number of new premium residential projects and project phases were launched. These projects were priced in the range of INR 5,000 - 9,000 per sq ft in micromarkets such as New Gurgaon and Dwaraka Expressway. Absorption remained restrained due to high price-points in both the primary and secondary sales markets, while a few select projects witnessed an over whelming response from both investors and end-users in primary markets. The Dwarka Expressway and New Gurgaon sectors from 80-92 remained the most active. Capital values in the secondary premium residential market witnessed a marginal appreciation QoQ in the range of 5-7% in select projects at Dwarka Expressway. The remaining micro-markets witnessed marginal appreciation in the range of 2-3% during the quarter. Rental values witnessed a QoQ increase in the range of 3-6% in most of the micromarkets because of the limited ready to move properties in the premium segment. Haryanas State Government has approved a nine-kilometre four-lane corridor from Mehurali-Gurgaon Road to Gurgaon-Faridabad Road. The objective of this road is to decongest traffic and improve the connectivity between the cities. COLLIERS VIEW: The increased investor participation resulted in increased resale inventory stock. In near term, the higher price points will confine the end-user as well as investor activity in the established residential micro markets. The emerging micro markets such as Dawarka Expressway, New Gurgaon will continue to hold the interest of buyers while price are expected to remain more or less at the same level.
Ekantum Emerald Bay Grande Sanskriti Location Sector 112 Sector 104 Sector 92 Sector 92 Developer Name Emaar MGF Puri Construction Sare Homes Bestech Group Tentative Possession* 4Q 2017 4Q 2016 4Q 2017 4Q 2016 Rate (Per Sq.ft.)** 9,000 7,250 5,250 5,750
18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 45,000 40,000 35,000 INR per sq.ft. 30,000 25,000 20,000 15,000 10,000 5,000 0 Sohna Road & Ext Sushant Lok DLF Phase I Golf Course Road NH - 8 Sohna Road & Ext 3Q2013F 1Q2013F
DLF Phase I
Gurgaon

Golf Course Road

1Q 2013
80
2Q 2013
60 40
INR per sq.ft. per month NH - 8
20 0
Micro Market Golf Course Extension Road Sohna Extension Pataudi Road New Gurgaon Ongoing Price (P.S.F) 7,500 - 8,500 5,000 - 6,500 4,500 - 5,500 3,500 - 4,500
Sushant Lok
DLF Phase I
INR Per sq.ft.
3Q2009
3Q2008
3Q2010
3Q2012
1Q2010
3Q2011
1Q2012
1Q2011
NH-8 Golf Course Road
Sohna Road & Ext Sushant Lok
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1Q2014F
1Q2009
INDIA | May 2013 | residential noida

A few new projects were launched in 1Q 2013. Most of them were new towers in existing projects in sectors along the NOIDA Expressway, and were priced in the range of INR 4,500 - 7,000 per sq ft. This quarter witnessed limited additional supply in the citys residential stock, as few under-construction projects offered readyfor-possession units. Capital values for premium residential properties in the secondary market increased marginally in the range of 2-4% QoQ, while micro-markets like Sector 61-63 remained stable. This could be due to the limited activity in the secondary sales-market in established areas. Buyers now prefer new projects with a modern amenities. Rental values during this quarter remained unchanged across all micro-markets; new projects were in demand because of the state-of-an-art facilities and amenities they offered. During 1Q 2013, in a major infrastructure push the local government authorities of NOIDA and Greater NOIDA have cleared more than 29 km of metro rail project between NOIDA and Greater NOIDA. Total cost of the entire project is expected to be around INR 5,500 crore. This will further improve the connectivity and boost the real estate activities between the two sister cities. Colliers View: In mid term, the market will be dominated by mid-range buyers, primarily because of the affordability quotient. Prices are expected to see moderate appreciation, in view of large upcoming inventory and new project launches.
20,000 17,000
INR per sq.ft.
14,000
11,000
8,000
5,000
Sector 61, 62., 63
noida

Sector 44

1Q 2013
40 30 20
Sector 28, 29, 30
2Q 2013
10 0
Sector 50
Micro Market NOIDA Expressway Sector 72 - 78 Sector 117 - 121 Ongoing Price (P.S.F) 3,800 - 5,500 4,500 - 5,800 4,000 - 5,000
Sector 92/93
Sector 61, 62., 63

12,000 10,500 9,000 7,500 INR Per sq.ft. 6,000 4,500 3,000 1.500 0 1Q2010 3Q2010 1Q2011 3Q2011 1Q2012 3Q2012 1Q2013 3Q2013F 1Q2014F
Sector 44
3Q2009
Sector 61,62,63 Sector 92 / 93
Sector 50 Sector 28,29,30
KEY ONGOING PROJECTS Project Name

Panchsheel Pratishtha The Palms Maxblis Grand Kingston Victory Ace Eldeco Inspire Prateek Edifice Location Sector 75 Sector 117 Sector 75 Sector 143B Sector 119 Sector 107 Developer Name Panchsheel Group Unitech Ltd. Maxblis Construction Pvt. Ltd. Victory Group Eldeco Group Prateek Group Tentative Possession* 4Q 2016 4Q 2016 2Q 2016 4Q 2016 4Q 2016 4Q 2016 Rate (Per Sq.ft.)** 4,600 5,000 4,900 4,800 4,500 6,950
p. 6
Sector 28, 29, 30
2,000 Sector 92/93 Sector 50 Sector 44
INDIA | may 2013 | residential CHENNAI

In 1Q 2013, numerous new projects were launched in the city. Old Mahabalipuram Road (OMR), Porur, Ponamalee, Ambattur, Sriperumbudur, Orgadamand Egattur have witnessed the most new launches. Most of these projects were priced in the range of INR 3,400 7,000 per sqft. There was limited supply in the city in micromarkets such as GST Road, OMR, Anna Nagar, Poes Garden, Boat Club Road, RK Salai and Thiruvanmiyur, due to the completion of a number of small projects. In these markets most of the mid-range projects were available for resale in the price band of INR 7,000 12,000 per sqft , while premium projects were priced in the range of INR 14,000 30,000 per sq ft .
INR per sq.ft. per month 30,000 26,000 22,000 INR per sq.ft.
18,000 14,000 10,000 6,000
2,000 Anna Nagar Velachery Adyar Beasant Nagar T Nagar Nungambakkam Sholinganallur Alwarpet / R A Puram Siruseri/ Kazipattur 3Q2013F
Adyar Anna Nagar T Nagar
Boat Club
chennai

Boat Club

1Q 2013
75
Siruseri/ Kazipattur
2Q 2013
60 45
Nungambakkam
Sholinganallur
30
Anna Nagar
Micro Market Velachery Sholinganallur Siruseri/ Kazipattur Ongoing Price (P.S.F) 5,000 - 7,000 3,500 - 4,200 2,500 - 3,900
Capital values were increased in the range of 3-5 % in almost all the micro-markets, except for areas like Beasant Nagar, Alwarpet / R A Puram and Velachery, where capital values remained stable. Rental values witnessed an increase in the range of 4 -5% in almost all micro-markets. The local Civic Authorities have allocated a budget over INR 900 crore for roads, parks and other works; INR 450 crore for stormwater drains and INR 31.15 crore for bridges. The key focus is to decongest city roads and improve the overall citys infrastructure. COLLIERS VIEW: City premium residential market has been growing at steady pace. Many developers have launched new projects across the city. Going ahead, locations along with OMR and GST Road would remain active in terms of number of new project launches because of sustained IT/ITeS development and planned infrastructure like metro project and mono rail projects in these locations.
15 0
Velachery
Adyar
Alwarpet / R A Puram T Nagar
Beasant Nagar

25,000
21,000
17,000
13,000 INR Per sq.ft.
9,000
5,000
1,000 1Q2008 3Q2008 1Q2009 3Q2009 3Q2012 1Q2013F 1Q2010 1Q2012 1Q2014F 3Q2010 3Q2011 1Q2011
Boat Club Sholinganallur Siruseri/ Kazipattur Velachery
Alwarpet / R A Puram Beasant Nagar Nugambakkam

Albatross Krona (Ph II) Meritta Pacifica Aurum Serene Solitaire Location Egattur Porur Kelambakkam, OMR OMR Porur West Mambalam Developer Name Archean Design & Development VGN Developers Sobha Developers Pacifica Group Sobha Developers Casa Grande Tentative Possession* 4Q 2015 4Q 2015 4Q 2016 4Q 2015 4Q 2016 4Q 2015 Rate (Per Sq.ft.)** 6,000 - 7,000 4,300 5,000 3,400 4,800 13,500
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INDIA | May 2013 | RESIDENTIAL BENGALURU (BANGALORE)

28,000
In 1Q 2013, the Bangalore residential market has seen a number of new launches in micromarkets such as Hosur Road, Hennur Road, Tumkur Road and Sarjapur Road. These new launches were priced in the range of INR 3,100-5,000 per sq ft, except Prestige Spencer Heights located at Frazer Town, which was priced INR 14,000 per sq ft. The city witnessed additional new supply as a number of completed projects and project phases were finalised this quarter, including Skyline Ambrosia, Regency Chandra, Vaishnavi Symphony, Esteem Enclave, Century Celesta, Skylark Zenith and Legacy Ariston. Capital values for premium residential properties witnessed an increase in the range of 2-9% QoQ in almost all micro-markets, except Bannerghatta Road where capital values remained stable. Rental values also appreciated in the range of 1-9% in almost all micro-markets; however locations like Cooke Town, Airport Road and Indiranagar remained stable. In order to reduce congestion and boost real estate activities in Bangalore, the state government and the Asian Development Bank have decided to develop eight new residential and industrial clusters in the RamanagaramChannapatna, Kanakapura-Nelamangala, Dobbspet-Peenya, Doddaballapur, AnekalJigani-Attibele, Devanahalli-Vijayapura, Magadi and Hoskote- Krishnarajapuram micro-markets. COLLIERS VIEW: The citys residential market witnessed healthy demand both from investors and end-users. We anticipate that the city will see a number of new launches in both premium and mid-range categories in the medium-term. Given the number of new launches, it is anticipated that prices will see appreciation in the near-to mid-term.
Mantri Web City Prestige Spencer Heights Samrudhi Rhythm SJR Plazza City Tata Haven The Greens Location Hennur Road Frazer Town Off Hosur Road Sarjapur Road Tumkur Road Hosur Road Developer Name Mantri Developers Prestige Group Samrudhi Developers SJR Group Tata Developers Indya Estates
24,000
20,000 INR per sq.ft. 16,000 12,000
8,000 4,000
0 Indiranagar Jayanagar Bannerghatta Road Whitefield Palace Orchard Koramangala Airport Road Cooke Town Central Yelahanka 3Q2013F
Jayanagar Bannerghatta Road Palace Orchard
bengaluru

80
Central Cooke Town Yelahanka

1Q 2013
2Q 2013
60 40
INR per sq.ft. per month Whitefield (Appts) Jayanagar
20 0
Koramangala
Palace Orchard
Micro Market Airport Road Bannerghatta Road Whitefield Yelahanka Ongoing Price (P.S.F) 5,000 - 6,000 4,200 - 6,000 4,400 - 6,700 3,800 - 6,000
Bannerghatta Road Indiranagar
Airport Road

25,000
20,000
INR Per sq.ft.
15,000
10,000
5,000
3Q2009
3Q2011
1Q2008
3Q2008
1Q2009
1Q2012
Central Indiranagar Yelahanka Koramangala
Cooke Town Airport Road Whitefield
Tentative Possession* 4Q 2016 4Q 2015 4Q 2015 4Q 2016 4Q 2016 4Q 2016
Rate (Per Sq.ft.)** 4,490 14,000 3,450 4,302 3,125 2,375

p. 8
1Q2014F
1Q2010
3Q2010
3Q2012
1Q2013
1Q2011
INDIA | May 2013 | RESIEDENTIAL kolkata

During 1Q 2013, the citys residential market witnessed an increase in new premium project launches in locations like Garia, Sonarpur, Bondel Road, Tangra, Narendrapur Howrah and Jagaddal. Most of these projects were priced in the range of INR 2,400 - 6,000 per sq ft. Construction activities remain healthy, with the completion of numerous residential projects like Sunny Dale and Sunny Dew II by Starlite Group, located at EM Bypass and Garia respectively, and 4 Sight Model Town by Ganguly Group and Hindustan Enclave by Somani Realtors, located at Garia. Demand for residential properties from end users and investors picked up this quarter, and newly launched projects witnessed high absorption. Capital values increased in the range of 2-7% QoQ in almost all micro-markets. Similarly, rental values also witnessed an increase in the range of 2-5% QoQ across the city. In order to boost the citys infrastructure and ease out the traffic conditions between EM Bypass and Science City, the construction work of subway taken up by the State Government has been completed in a record time of just 29 days. Colliers View: Residential sales volumes are expected to gain momentum in the nearterm. Peripheral locations such as Tollygaunge, Behala, Salt Lake, EM Bypass and New Town Rajarhat will see increased activity, due to their affordability quotient. Overall, capital and rental values are expected to remain stable in the near future, except for south Kolkata due to the limited supply in this area.
17,000 15,000 13,000 INR per sq.ft. 11,000 9,000 7,000 5,000 3,000 1,000 Bhawanipur Loudon Street New Town Rajarhat Tollygunge Ballygunge PA Shah Road Salt Lake Behela EM Bypass VIP Road Tollygunge Alipore Alipore
Kolkata

Bhawanipur New Town Rajarhat

1Q 2013
40 30 20 10 0
PA Shah Road
2Q 2013
VIP Road
EM Bypass
Micro Market Tollygunge Behela Salt Lake EM Bypass New Town -Rajarhat Ongoing Price (P.S.F) 3,600 - 4,800 2,900 - 3,700 4,000 - 5,500 4,000 - 7,000 3,200 - 4,600
Salt Lake
Behela
Ballygunge
Loudon Street

16,000 14,000 12,000 10,000 INR Per sq.ft. 8,000 6,000 4,000 2,000 0
1Q2010
1Q2011
3Q2011
Bhawanipur Behela EM Bypass Ballygunge
Alipore VIP Road Salt Lake Loudon street
Tollygunge P A Shah Road New Town - Rajarhat

Arihant Viento` Arti Green Valley Mayfair Bloom Mayfair Whitefield Signum Gardenia Tirupati Paradise Location Tangra Garia Jagaddal Narendrapur Bondel Road Sonarpur Developer Name Arihant Group Arti Group Mayfair Group Mayfair Group Heritage Realty Group Tirupati Awas Tentative Possession* 2016 2017 2015 2015 2016 2016 Rate (Per Sq.ft.)** 5,800 2,400 2,280 2,350 6,000 2,014
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3Q2013F
1Q2014F
1Q2008
3Q2008
1Q2009
3Q2009
3Q2010
3Q2012
1Q2012
1Q2013
INDIA | May 2013 | RESIEDENTIAL PUNE

In 1Q 2013, new residential projects were launched in locations like Baner-Balewadi, Kondhwa, Kharadi-Hadapsar, Koregaon Park, Wakad, NIBM and Taleagon. These new launches were priced between INR 3,5006,000 per sq ft , with the exception of luxury projects quoting INR 10,000 - 12,000 per sq ft. This quarter witnessed a slight slowdown in construction activity, further delaying completion of projects.
pune
15,000 13,000 11,000 9,000 7,000 5,000 3,000 1,000 NIBM/Undri/Kondhwa Kalyani Nagar/Viman Nagar/Kharadi Bhawanipur Magarpatta/Hadapsar Baner/Hinjewadi/ Wakad/Pashan Pimpri/Chinchwad/ Chakan Magarpatta/ Hadapsar 3Q2012F 1Q2014F Deccan/Camp/ Boat Club Kothrud/Bavdhan/ Wajre

1Q 2013
2Q 2013
Overall, capital prices in Pune remained stagnant in most micro-markets in comparison with 4Q. However the 10-20% hike in the ready-reckoner-rate resulted in price adjustments in the range of 2-8% in areas like Magarpatta-Hadapsar, Baner-Pashan, Hinjewadi, Wakad, Warje, Pimpri-Chinchwad and Chakan. This quarters rental values remained fairly stable in almost all of the micro-markets in Pune. The State Government proposed the provision of funds in the Union Budget 2013-2014 for two corridors of the metro rail project in Pune and Pimpri-Chinchwad, between Vanaz and Ramwadi, and between Nigdi and Swargate. COLLIERS VIEW: Punes residential market continues to remain strong, led by the IT industrys housing demand. Luxury projects offering modern amenities and retained green areas is the latest demand trend. Being the well-established residential hubs, Hadapsar and Kharadi continue to be the preferred locations, next to prime central areas, followed by the Baner-Pashan stretch, due to competitive pricing and their close proximity to Hinjewadi. Northern areas of Chakan, like Talegaon and Ravet are potential residential hotspots for growth due tothe promotion of SEZs and the planned Pune metro rail project.
INR per sq.ft.

Kalyani Nagar/Viman Nagar/ Kharadi Bhawanipur
30 25
Pimpri/Chinchwad/ Chakan
20 15 10 5 0
Deccan/Camp /Boat Club
NIBM/Undri/ Kondhwa
Micro Market Kalyani Nagar/Viman Nagar/Kharadi Baner/Hinjewadi/Wakad/ Pashan Kothrud/Bavdhan/Wajre NIBM/Undri/Kondhwa Pimpri/Chinchwad/Chakan Ongoing Price (P.S.F) 5,000 - 12,000 3,800 - 6,000 3,800 - 6,000 3,800 - 5,000 2,500 - 4,500
Kothrud/ Bavdhan/ Wajre
Baner/Hinjewadi/Wakad/Pashan

11,000 10,000 9,000 8,000 INR Per sq.ft. 7,000 6,000 5,000 4,000 3,000 2,000 1Q2009 3Q2009 3Q2012 1Q2010 3Q2010 3Q2011 1Q2012 1Q2013 1Q2011
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

9 Sadashiv Imperium Nyati Epitome Palm One Pittie Kourtyard Privie Sienna Location Sadashiv Peth Balewadi NIBM Kondhwa Kharadi Hadapsar Developer Name Pinnacle Group Madhumita Constructions Nyati Group Nobles Group Raja Bahadur International Ltd. Kumar Properties Tentative Possession* 1Q 2015 2Q 2014 4Q 2016 1Q 2015 1Q 2014 3Q 2013 Rate (Per Sq.ft.)** 12,000 5,850 5,200 5,100 5,000 5,999
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INDIA | may 2013 | residential | submarkets
Residential SUBMARKETS
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.
CITY BAROMETERS
Increasing as compared to previous quarter Decreasing as compared to previous quarter Remained stable from previous quarter
p. 11
INDIA | May 2013

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 Mumbai : Vaibhav Kumar, Office Director Vaibhav.kumar@colliers.com IndiaBulls Finance Centre, 1701-A, 17th Floor, Tower 3, Elphinstone Mills, Senapati Bapat Marg, Mumbai- 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 Recent Reports :
GLOBAL RETAIL
MID-YEAR 2012 | RETAIL
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
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.
INDIA OFFICE
INDIA RESIDENTIAL
APAC OFFICE
GLOBAL retail
MID-YEAR 2012 | RETAIL
iNDIA bUDGET 2012-13

UNION BUDGET 2013 - A SNEAK PREVIEW
HIGHLIGHTS
GLOBAL
HIGHLIGHTS
1Q 2013 | RESEARCH
GLOBAL
Record Rents for Top Retail Corridors; Global Slowdown Impacts Momentum Elsewhere
ANN T. NATUNEWICZ Manager | Retail Research | USA
c Colliers
Record Rents for Top Retail Corridors; Global Slowdown Impacts Momentum Elsewhere
ANN T. NATUNEWICZ Manager | Retail Research | USA
c Colliers
Impact on Real Estate I Neutral

Company
BSE SENSEX 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.
Change (%)
-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
TOP 10 GLOBAL RETAIL STREETS*

(USD PER SQUARE FOOT PER YEAR)
ANNUAL RENT CHANGE (USD)** (%)
2012 Global Retail Streets survey found that of 129 locations tracked, 51 posted higher year over year average rental rates, 49 were flat, and 24 were down (5 lacked comparable data). entering new marketsboth developed and developingcontinue to hedge risk by targeting the same one or two premier locations, generating heated competition and outsized rental rate growth in a handful of space-constrained corridors. with the most ambitious long-term expansion plans remain focused on emerging markets with rapidly growing middle-class populations, but recently institutional capital has pulled back somewhat to favor core markets and investments. economic and political turmoil did affect rental rates in headline-generating markets (such as Cairo and Athens), high streets with strong fundamentals remained remarkably resilient, suggesting, at least for now, some separation between macroeconomic issues and underlying real estate fundamentals. we conducted our survey, however, weakening consumer sentiment among affluent shoppers has already begun to impact retailers revenues and could hinder landlords near-term ability to raise rents, suggesting flattening growth rates for the coming year.
c Retailers
TOP 10 GLOBAL RETAIL STREETS*

(USD PER SQUARE FOOT PER YEAR)
ANNUAL RENT CHANGE (USD)** (%)
2012 Global Retail Streets survey found that of 129 locations tracked, 51 posted higher year over year average rental rates, 49 were flat, and 24 were down (5 lacked comparable data). entering new marketsboth developed and developingcontinue to hedge risk by targeting the same one or two premier locations, generating heated competition and outsized rental rate growth in a handful of space-constrained corridors. with the most ambitious long-term expansion plans remain focused on emerging markets with rapidly growing middle-class populations, but recently institutional capital has pulled back somewhat to favor core markets and investments. economic and political turmoil did affect rental rates in headline-generating markets (such as Cairo and Athens), high streets with strong fundamentals remained remarkably resilient, suggesting, at least for now, some separation between macroeconomic issues and underlying real estate fundamentals. we conducted our survey, however, weakening consumer sentiment among affluent shoppers has already begun to impact retailers revenues and could hinder landlords near-term ability to raise rents, suggesting flattening growth rates for the coming year.
c Retailers
STREET/PRECINCT
New York Fifth Avenue Hong Kong Queen's Road Central, Central (tie) Hong Kong Canton Road (tie) London Old Bond St.*** Paris Avenue des*** Champs-lyses Hong Kong Causeway Bay New York Madison Avenue Zurich Bahnhofstrasse Milan Via Monte Napoleone Sydney Pitt Street Mall
, , , , , ,
. . . . flat . . flat (.) (.)
c Companies
STREET/PRECINCT
New York Fifth Avenue Hong Kong Queen's Road Central, Central (tie) Hong Kong Canton Road (tie) London Old Bond St.*** Paris Avenue des*** Champs-lyses Hong Kong Causeway Bay New York Madison Avenue
, , , , , ,
. . . . flat . . flat (.) (.)
c Companies
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. THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATE SECTOR ARE AS FOLLOWS: 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.
c While
c While
c Since
c Since
This spring proved to be a tricky time to conduct global benchmarking, as market sentiment has deteriorated markedly since April. During the past year, virtually every entity making a forecast including Colliers in our 2012 U.S. Retail Outlookincluded a caveat related to not-yet-quantifiable global fallout from Europes fiscal issues. As the past few months have illustrated, the time to face Eurozone issues has finally arrived, spawning a new wave of financial uncertainty. More than two years post-recession, though, results from our annual survey of High Street rents illustrate that the worlds priciest retail corridors continue to attract the most sought-after tenants at lofty rental rates. Eight of Colliers top ten Global Retail Streets in 2011 made the list again this year. The big story, however, lies with the explosive year over year rental growth achieved in a handful of markets. Six of our Top 10 grew at double-digit levels year over year in local currency units, five of them by more than 20%. At a regional level, streets in areas that entered 2007-08 better-positioned economicallyAustralia, Canada, parts of Eastern Europehad a higher percentage of this year's flat-to-higher rents than those slower to emerge from the recession. We will be watching these areas closely. Even as they represent some of the most attractive destinations for expansion-minded companies and yield-seeking investors, they too are vulnerable to softening consumer demand and, for those with reliable data, encroachment of e-commerce. This report contains two parts. The first summarizes the results of our annual Global Retail Streets survey, conducted in April 2012. The second incorporates content from Colliers brokerage and research teams worldwide who contributed market operational metrics, nuanced commentary on retail conditions, and forward-looking opinions on what the next year will hold for consumers, landlords, and investors.
Source: Colliers International * selected cities ** exchange rate as of March 31, 2012 *** Zone A rents
OFFICE PROPERTY MARKET OVERVIEW

INDIA
QUARTERLY UPDATE | APRIL | 2013
REGIONAL RETAIL RESEARCH CONTACTS

AMERICAS > Ann T. Natunewicz Ann.Natunewicz@colliers.com EUROPE/MIDDLE EAST/AFRICA > Zuzanna Baranowska Zuzanna.Baranowska@colliers.com ASIA > Simon Lo Simon.Lo@colliers.com AUSTRALIA/NEW ZEALAND > Nora Farren Nora.Farren@colliers.com
Residential Property Market Overview

INDIA
QUARTERLY UPDATE | FEBRUARY | 2013
Zurich Bahnhofstrasse Milan Via Monte Napoleone Sydney Pitt Street Mall
This spring proved to be a tricky time to conduct global benchmarking, as market sentiment has deteriorated markedly since April. During the past year, virtually every entity making a forecast including Colliers in our 2012 U.S. Retail Outlookincluded a caveat related to not-yet-quantifiable global fallout from Europes fiscal issues. As the past few months have illustrated, the time to face Eurozone issues has finally arrived, spawning a new wave of financial uncertainty. More than two years post-recession, though, results from our annual survey of High Street rents illustrate that the worlds priciest retail corridors continue to attract the most sought-after tenants at lofty rental rates. Eight of Colliers top ten Global Retail Streets in 2011 made the list again this year. The big story, however, lies with the explosive year over year rental growth achieved in a handful of markets. Six of our Top 10 grew at double-digit levels year over year in local currency units, five of them by more than 20%. At a regional level, streets in areas that entered 2007-08 better-positioned economicallyAustralia, Canada, parts of Eastern Europehad a higher percentage of this year's flat-to-higher rents than those slower to emerge from the recession. We will be watching these areas closely. Even as they represent some of the most attractive destinations for expansion-minded companies and yield-seeking investors, they too are vulnerable to softening consumer demand and, for those with reliable data, encroachment of e-commerce. This report contains two parts. The first summarizes the results of our annual Global Retail Streets survey, conducted in April 2012. The second incorporates content from Colliers brokerage and research teams worldwide who contributed market operational metrics, nuanced commentary on retail conditions, and forward-looking opinions on what the next year will hold for consumers, landlords, and investors.
Source: www.bseindia.com | Feb 28, 2013
Source: Colliers International * selected cities ** exchange rate as of March 31, 2012 *** Zone A rents
ASIA PACIFIC OFFICE MARKET OVERVIEW

3Q 2012
REGIONAL RETAIL RESEARCH CONTACTS

AMERICAS > Ann T. Natunewicz Ann.Natunewicz@colliers.com EUROPE/MIDDLE EAST/AFRICA > Zuzanna Baranowska Zuzanna.Baranowska@colliers.com ASIA > Simon Lo Simon.Lo@colliers.com AUSTRALIA/NEW ZEALAND > Nora Farren Nora.Farren@colliers.com
www.colliers.com
www.colliers.com
1 Colliers International
www.colliers.com/india
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Residential Property Market Overview

INDIA | May 2013 | residential

research India RESIDENTIAL & forecast market Report

Research SYDNEY CENTRAL & forecast BUSINESS report DISTRICT

MACRO ECONOMIC OVERVIEW

Apr-13 7.50% 6.50% 4.00% 5.96% 9.95%

8.00% 7.00% 4.75% 7.50% 11.00%

Return on Alternative Investments

28,423 55,582 9.00% 17,151 1,781

26,450 45,117 8.25% 18,358 1,803

-6.94% -18.83% -8.33% 7.04%

8.0 7.0 6.0 5.0 4.0 3.0

Cash Reserve Ratio

Wholesale Price Index

Source: Goverment of India, Colliers International India Research

2.0 1.0 0.0 Oct11

INDIA | May 2013 | residential MUMBAI

AVERAGE CAPITAL VALUE RANGE

AVERAGE RENTAL VALUE

CITY OFFICE BAROMETER

Breach Candy, Napeansea Road, Peddar Road

INR per sq.ft. per month

Colaba, Cuffe Parade

AVERAGE CAPITAL VALUE TRENDS

Powai Khar Prabhadevi Breach Candy, Napeansea Road, Peddar Road

KEY NEW PROJECTS Project Name

Note: * As mentioned by developer ** Base selling price as quoted by developer

INDIA | May 2013 | residential delhI

AVERAGE CAPITAL VALUE RANGE

CITY OFFICE BAROMETER

INR per sq.ft. per month

AVERAGE RENTAL VALUE

Greater Kailash I & II, South Extension

Golf Links, Jor Bagh, Sunder Nagar

Friends Colony, Maharani Bagh Panchashila, Anandlok, Niti Bagh, SDA

AVERAGE CAPITAL VALUE TRENDS

KEY ONGOING PROJECTS Project Name

Note: * As mentioned by developer ** Base selling price as quoted by developer

INDIA | May 2013 | residential GURGAON

AVERAGE CAPITAL VALUE RANGE

AVERAGE RENTAL VALUE

CITY OFFICE BAROMETER

AVERAGE CAPITAL VALUE TRENDS

INR Per sq.ft.

NH-8 Golf Course Road

Sohna Road & Ext Sushant Lok

Note: * As mentioned by developer ** Base selling price as quoted by developer

INDIA | May 2013 | residential noida

AVERAGE CAPITAL VALUE RANGE

INR per sq.ft.

Sector 61, 62., 63

AVERAGE RENTAL VALUE

CITY OFFICE BAROMETER

INR per sq.ft. per month

Sector 61, 62., 63

AVERAGE CAPITAL VALUE TRENDS

Sector 61,62,63 Sector 92 / 93

Sector 50 Sector 28,29,30

KEY ONGOING PROJECTS Project Name

Sector 28, 29, 30

2,000 Sector 92/93 Sector 50 Sector 44

INDIA | may 2013 | residential CHENNAI

AVERAGE CAPITAL VALUE RANGE

18,000 14,000 10,000 6,000