Bangalore: Real Estate Market Report - · PDF fileBangalore: Real Estate Market Report Office ... real estate development are the North ... 2007and Bangalore Development Authority

November 2013

A REPORT BY STRATEGIC ADVISORY GROUP

Bangalore: Real Estate Market Report

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BANGALORE: REAL ESTATE MARKET REPORT

112 million sqft stock

OF

FIC

ER

ES

IDE

NT

IAL

Y-O-Y growth in absorption:

8%

5.7 million sqft absorbed in H1 2013

(including 2 million sqft of pre-committed space)

Average Annual Rental Appreciation (2012 -13): 0 - 8%

40,336 units launched in 2012

33,988 units absorbed in 2012

26,620 units launched in H1 2013

18,076 units absorbed in H1 2013

Grown at a CAGR of

31%

since year 2010

Annual Price Appreciation (2012-13): 5% - 25%

BANGALORE REAL ESTATE: 2013 AND BEYOND

RE

TA

ILH

OS

PIT

AL

ITY

7.7 million sqft stock 0.78 million sqft expected

to enter in 2013 (of which 0.35 millionsqft is pre-committed)

Grown at a CAGR of

12% since year 2010

Average Annual Rental Appreciation (2012 -13): 5% - 20%

9,585

total number of existing hotel rooms

5,190rooms likely to enter by 2017

56% - 59% average occupancy rate

2


During the last two decades Bangalore gained prominence as a growth corridor in India on account of rapid development of the

IT/ITeS sector. Going forward, in addition to the IT/ITeS sector

other sectors such as biotechnology, automobile, aviation and

textiles are anticipated to strengthen the city’s economy.

Bangalore witnessed a decadal population growth rate of 47% and today, the city is the fifth largest urban agglomeration in the

country with a population of 9.6 million. A growing base of young

professionals with rising disposable incomes and substantial

global exposure has provided an immense opportunity for

development across the real estate segment.

The city’s infrastructure is being constantly upgraded with projects like the Metro Rail, Elevated Road to the Airport and the

Signal-free ORR. Planned projects namely PRR, High Speed

Rail to the airport and Monorail are further expected to ease the

transport within the city. Despite the above mentioned

improvements, Bangalore faces two prominent challenges -

provision of infrastructure to match the pace of population growth

and provision of adequate water & electricity.

In the last two decades, real estate development in Bangalore was focussed towards the southern and eastern corridors until

the city's International Airport became operational in 2008. Since

then, the real estate development migrated towards the north

quadrant of the city. In the past two years, areas in Bangalore

West especially Tumkur Road and its neighboring locations have

gained momentum due to availability of large land parcels and

improved connectivity. Currently, the most promising areas for

real estate development are the North - West region,

Kanakapura Road towards South and Old Madras Road towards

the North - East.

Bangalore’s non-captive office space registered an absorption of 5.7 million sqft in H1 2013 including 2 million sqft of

precommitments. According to our estimate, Bangalore will

absorb nearly 9 million sqft by end of 2013 and ORR will remain

the most attractive micro-market for the next 3 to 5 years. Post

revision of SEZ regulation, many SEZ Parks are likely to witness

mixed developments owing to high residential demand.

EXECUTIVE SUMMARY

Bangalore’s residential sector continues to remain strong in H12013. The city witnessed fresh supply of 26,620 units in H1

2013 and 18,076 units were absorbed during the same period.

The most vibrant micro-markets include Whitefield, ORR

(Hebbal to Silk Board Junction), Sarjapur Road and Bangalore

North. The sector registered CAGR of 31% during 2010 and

2012 with national and international players like Arvind Real

Estate, Address Makers by India REIT, Phoenix Group, Bhartiya

Group and Penninsula Land Limited progressively venturing into

the sector. Further, Private Equity players are also investing in

this sector.

The city is poised for large supply in retail sector in the coming years. The rentals have registered an annual appreciation of 5 %

- 20% in shopping malls and 4% - 13% in high street locations.

Most of the operational space is concentrated in SBD and PBD

locations. With 5.65 million sqft of mall space under-construction,

the city will have 13.30 million sqft of operational mall space by

2016. The city lacks specialty malls focusing exclusively on sale

of themed merchandise. The most promising locations for future

development are ORR-Sarjapur stretch, Old Madras Road and

Kanakapura Road.

Hospitality sector is likely to witness entry of 3,793 rooms in next 3 years. The current inventory is dominated by the 4 and 5 star

category projects and the same is likely to continue in the

coming years. Apart from CBD- Whitefield, ORR and Bangalore

North are potential locations for development. Currently, national

and international operators are keen to operate 3 star business

hotels across the city.

Overall, Bangalore has great growth potential for real estate development across different segments.

4


The modern metropolis Bangalore scores over many other Indian cities for various reasons: salubrious

climate, cosmopolitanism and growing knowledge economy.

Area: Bangalore City Corporation (sq km) 741

Area: Bangalore Metropolitan Area (sq km)

Decadal growth rate of population (2001 - 11)

11,276

8.5 million

9.6 million

47%

2Total Population (Bangalore City Corporation)

2Total Population (Bangalore Metropolitan Area)

Bangalore - Area and Population Growth

0

100

200

300

400

500

600

700

16

1950 1963 1969 1979 1995 2007

800

2013

Are

a (

sqkm

)

0

1

2

3

4

5

6

7

16

8

9

10

Area (sqkm) Population (in millions)

Table: Bangalore - Demographic Snapshot

BA

NG

AL

OR

E G

RO

WT

H S

TO

RY

Real Estate emerged as a major player in the economic growth

of the city during the last three decades. The key reasons that

supported the rapid development of Real Estate Sector in

Bangalore are:

Growth in the IT/ITeS industry that led to creation of large number of jobs across sectors which in turn led to migration

of working population to the city.

Today close to 2,840 IT/ITeS companies including at least

100 Fortune 500 companies operate out of Bangalore.

The city today employs nearly 0.95 million people and 3creates nearly 90,000 new jobs annually.

The multiplier effect of this has led to a real estate boom

and a flourishing retail and entertainment industry. The

city is also sufficiently supported by the hospitality

industry with accommodation ranging from budget

segment to 5 Star luxury segments.

The growth in the IT/ITeS sector has been well supported

by the growth in the per-capita income of the city.

Bangalore’s per-capita income in 2011 - 12 was INR

237,0004, much higher than India’s per capita income of

INR 5,1305 for the same period. According to McKinsey,

by 2030 the city will have highest per-capita GDP in India.

Rising income levels, education and global exposure

have contributed to the evolution in the living standards of

the city.

The city witnessed entry of various MNCs like Texas

Instruments, IBM, Intel, Motorola, Dell and Microsoft,

which provided the required thrust for development of

the residential and business infrastructure.

Advancements in the IT/ITeS industry led to entry of

many other national and international developers in the

city. Key examples being the Ascendas Group

developing International Tech Park Bangalore (ITPB) in

Whitefield, Sun Forest City investing in the Aerospace

Park in Devanahalli. The residential sector saw the Tata

Group, DLF, Godrej Properties and Phoenix Group

expanding their portfolio in the city while international

hotel brands like Sheraton, Hilton Group, Radisson, Ritz

Carlton, Hyatt and Marriott entered the city. Bangalore

today, is also the most sought after retail destination in

the country followed by Mumbai and Delhi.

1Revised Master Plan - 2007and Bangalore Development Authority (BDA)2Population has been sourced from Revised Master Plan - 2007 and Census of India, 20113Working population has been arrived at using occupant load of 100 sqft of floor area per person for commercial buildings as per National Building Code (NBC) 20054“Market Skyline of India 2012” - Indicus Analytics, New Delhi India5Central Statistics Office

Figure: Growth of Bangalore City & its Population

in m

illio

ns

The working population in the city is educated, multi-cultural and young with the median age being 28 years.

Entry of Multi-National Corporations (MNCs) in office, hospitality, retail and residential sectors.

Apart from the IT/ITeS sector, Bangalore also accounts for close to 60% of all Biotech companies in India and 50% of the total

revenues at national level.

Bangalore is home to some of the best R&D facilities in aerospace & defense sector like ISRO, DRDO, Airbus Engineering Center,

Boeing Research & Technology Center. Apart from being the

base for most global players, Bangalore also accounts for

production of more than 25% of India’s aircraft and space craft.

Currently Bangalore’s economy is driven by the IT/ITeS sector. Other major sectors that contribute to the

city’s economy include biotechnology, automobile, aviation and textile industries.

ECONOMY

Automotive majors like Volvo, Toyota, Honda, Mahindra and Bosch have their presence in Bangalore.

Karnataka contributes to over 20% of national garment production and 45% of the total raw silk production in India. The

6garment sector employs close to 500,000 people in Bangalore

with leading manufacturers like Tommy Hilfiger, Marks & Spencer,

GAP, H&M, Matalan and Mothercare having their presence in the

city.

6Source: Karnataka Industrial Areas Development Board (KIADB) and Vestian Research

IT/ITeS Hubs CBD & SBDORR (Hebbal to Silk

Board Jn.) WhitefieldElectronics City &

Hosur Road

Type / Sector

With multiple economic activities, the city has grown from a uni-nuclear structure with a Central Business

District (CBD) to a multi-nuclear structure with several Suburban Business Districts and Peripheral

Business Districts (PBD).

Table: IT/ITeS Micro-markets in Bangalore

6

PBD

Bangalore North &Mysore Road

Corporate offices, BFSI, IT / ITeS

IT / ITeS IT / ITeS IT / ITeS, Electronics,

Manufacturing

IT / ITeS, Aerospace

Total Office Stock(in million sqft)

39.6 29.5 29 10.41 3.67

Working population 400,000 250,000 275,000 175,000 35,000

Projected Growth 10% 27% 10% 5% 5%

Key Operating Companies Microsoft, Dell, Goldman Sachs, IBM, Target, Google, Yahoo, Amazon

2Cisco, EMC , Capgemini, Oracle, Intel, Accenture, IBM, Cognizant, Honeywell

GE, SAP Labs, TCS, HP, Dell, Mercedes Benz, Huawei

Infosys, Wipro, Siemens, Mahindra Satyam, TCS

Shell Technologies, SLK Software, Tyco Electricals, Wipro

Bidadi Industrial Area Automobile & Auto components, General Manufacturing, Electronics & Electrical Manufacturing

Toyota, Coco-Cola, Tata Auto Plastic Systems, Shashi Exports

Phase III: 400 acres in planning stage

1,192

Doddaballapur Industrial Area

Textile, Beverages Gokaldas Images, Bombay Rayon Fashions, Gati Limited, Arviva Industries, Mudra Textiles, Grover Vineyards

~ 60 acres in Apparel park is under development

799

Industrial Area Type of IndustryTotal Area

(acres)Key Industries Growth Plans

Verasandra, Jigani & Bommasandra Industrial Area

IT / Manufacturing, Biotech 1,874 OTIS, American Power, KTTM, SKF, Maine Precision Tools, HCL, Tata Advanced Material

Phase III - Land acquisition in progress on Jigani - Harohalli Road (~712 acres)

Peenya IndustrialArea

Engineering, Auto Components, Textile, Electrical Goods Manufacturing

Wipro Lights, ITC, Kirloskar, Karle, ABB

Land acquisition of 200 acres for Greater Peenya industrial area

1,485

Narasapura & Hoskote Industrial Area

Auto & Auto Components Manufacturing, Warehousing, Textile

Volvo, GE India, Celebration Apparels, Autoliv, Indo-US MIM Tech

145 acres in Narasapura industrial area is under development

1,602

Kumbalgodu Industrial Area

Auto Components, Food Processing, Chemical Manufacturing

United Breweries, Sumi Motherson, Wirtgen India, Micro Labs -250

Harohalli Industrial Area Granite, Printing, Automobile, Hatcheries and General Engineering

Basant Betons, Komarla Hatcheries, Stovekraft, AO Smith, Lotus Polymers, Saint Gobain

Phase III: 1,365 acres under land acquisition stage

1,102

The city being an important industrial town has significant presence of manufacturing, automobile and

textile companies.

Table: Industrial Areas of Bangalore

Favourable Government regulations and improving infrastructure are expected to promote development in medium to long term towards Bangalore North.

Government of Karnataka (GoK) has announced the following projects within Bangalore Metropolitan Region in order to promote economic development in the city.

Particulars Devanahalli Business Park

AerospacePark

Hardware Park IT / BT Park

Location

ITIR Logistics Park

Devanahalli -

Adjacent to BIASouth of BIA Bagalur Village Bagalur Village

Muddenhall,

Kaniverayanapura,

Chikkaballapur

Balepura (near

Devanahalli)

Area (in acres) 414 1,000 941 1,028 12,000 150

Agency

Status

Companies

that have

been alloted

land

Karnataka State

Industrial &

Infrastructure

Development

Corporation

(KSIIDC).

Fresh EOI invited

in August 2011 to

develop the

project on a PPP

basis. Design for

the convention

center within the

park has been

finalized

Land aqusition is

underway

-

Department of

Commerce &

Industries, GoK

GoK - Hardware

Park,IFCI - Financial

City

Land has been

alloted to some

companies

already.BEML has started

construction.

BEML, AIMIL,

Dynamatic

Technologies,

Sunshine

Aerospace,

Starrag Seckert

Machine Tools,

Centum

Electronics

Land has been

alloted to some

companies

already.Foundation stone

laid for the

Financial city on

50 acres to be

developed by IFIC

Bangalore Bio-

Tech labs, Shell

Technology, Moser

Baer

Application

received from

various

companies to

develop IT/ITeS

SEZs. Land yet

to be alloted.

Sunlux

Technology

Karnataka

Industrial Areas

Development

Board (KIADB)

The Center has

approved the

project. Land

acquisition

underway for 2,200

- acres of phase I.

Global tender yet to

be floated to select

the developer

55 companies

including Infosys,

Wipro, TCS and

Cognizant have

signed up MOUs

KSIIDC

-


7Table: Key Government Initiatives: Proposed Economic Hubs in Bangalore

Integrated

Textile Park

Doddaballapur

Road

469

KIADB

Currently 41 units

are operational

across 48-acres

of land. Nearly

60-acres of land

under

development

Gokuldas

Images, Madura

Garments,

Raymonds,

Bombay Rayon

Fashion

7Vestian Research

Karnataka State

Electronics

Development

Corporation

Limited

(KEONICS)

PLANNING & DEVELOPMENT

Currently majority of the real estate development

in Banga lore is w i th in the Banga lore

Metropolitan Area (BMA 1,276 sqkm) under the

jurisdiction of Bangalore Development Authority

(BDA). However, with the development of various

under-construction and proposed infrastructure

projects in the Bangalore Metropolitan Region

(8,000 sqkm) under the jurisdiction of Bangalore

Metropolitan Regional Development Authority

(BMRDA), several new growth corridors have

emerged outside the BMA.

Bangalore-Devanahalli corridor due to the development of Bangalore International Airport (BIA) in Devanahalli.

Bangalore-Doddaballapur Corridor with the development of Doddaballapur Industrial area and its proximity to BIA.

Bangalore-Nelemangala-Tumkur corridor in North-West with the development of industrial areas in Peenya, Nelemangala and Dobaspet and the announcement of Bangalore-Chennai Industrial corridor.

KR Puram-Hoskote Corridor with the development of industrial areas in Hoskote and Narsapura.

Hoskote-Malur-Sarjapur-Attibele corridor with industrial development in this region; announcement of Bangalore - Chennai Industrial corridor and proximity to Electronics City.

Bangalore-Mysore corridor was looked at as an emerging corridor till 2008. However, with the Bangalore-Mysore Expressway and the associated townships failing to take off, this region has seen a decrease in activity levels.

The Revised Master Plan (RMP) 2031 has faced challenges while

implementing the proposed infrastructure development & economic

plans in terms of land acquisition issues, lack of funding, water shortage

and complex institutional mechanism. Key proposals of the Structural

Plan 2031 include:

A cluster based approach for development of the region identifying 8 clusters and 4 growth nodes in order to decongest the core.

The identified clusters include Ramanagaram-Channapatna, Bidadi-Harohalli, Nelamangala-Peenya, Dobaspete-Nelamangala,

Doddaballapur, Devanahalli-Yelahanka, Hoskote-KR Puram,

Jigani-Electronics City-Bommasandra-Attibele.

Growth Nodes include: Anekal, Kanakapura, Vijayapura, Magadi.

These clusters are connected by the Peripheral Ring Road (PRR), Intermediate Ring Road (ITRR) and the Satellite Town Ring Road

(STRR).

Commuter Rail Services to key towns within the Bangalore Metropolitan Region (BMR).

BDA has currently embarked upon the process of

preparing the revised master plan for 2031. The

recommendations of the Structural Plan 2031

prepared by BMRDA will play a major role in

developing the RMP 2031 for Bangalore.

8

Some of these emerging growth corridors include:


Figure: Key on-going and proposed infrastructure projects in Bangalore

Major Roads

Outer Ring Road

NICE Ring Road

Metro Rail Phase I (Operational)

Metro Rail Phase I (Under Construction)

Metro Rail Phase II (Proposed)

Proposed Monorail

Proposed High Speed Rail Link

Proposed Peripheral Ring Road

Bellary Elevated Express way Major Landmarks

Key Residential Areas

Key Metro Stations

Bangalore International Airport

Yelahanka

Outer Ring Road

Out

er R

ing

Roa

d

Outer Ring R

oad

HSR Layout

HMT Township

NH 7: To Hyderabad

Propo

sed

Perip

hera

l Rin

g Roa

d


NH 4: To Mumbai

Hebbal

BIEC

HesaraghattaCross

NIC

E Ring R

oad

NICE Ring Road

Nagawara

Banaswadi

MG Road

Krishnarajapuram

Byppanahalli

J.P. Nagar

Bangalore CityRailway Station

Rajaji Nagar

RMVExtension

Vijayanagar

Mysore Road

Kengeri

Puttenahalli

Thalagattapura

Kanaka

pura

Road

NH 209: To Coimbatore

SH 17:To Mysore

Silk Board

Gottigere

Begur

Koramangala

NH 7: To Salem

Bellandur

Brookefield

Pro

pose

d P

erip

hera

lR

ing R

oad

Magadi Road

PalaceGrounds

Marathahalli

Varthur

Bommasandra

Tumkur Road

Arkere

Bannerg

hatta R

oad

Hosur R

oad

NIC

E R

ing

Ro

ad

IISC

ITI

IIMB

Rajanukunte

SahakaraNagar Thannisandra

Hennur

HBR LayoutAvalahalli

Seegehalli

Haralur

Hosa Road

Dommasandra

Kothnur

Jaraganahalli

Jalahalli

Budigere

NH 4: To Chennai

Mysore Road

Old Madras Road

Indiranagar

C.V.Raman Nagar

Old Airport Road

Bel

lary

Roa

d

Whitefield Main Road

Sarjapur Road

Varthur Road

TowardsDoddaballapur Industrial Area

Doddaballapur M

ain Road

Hope Farm Circle

Jayanagar

Electronics City

Majestic

M

BangaloreUniversity

M

M

M

M

M

MM

M

M

M

M

M

M

M

M

M

M

awww.bmrc.co.in, www.karnataka.com, www.timesofindia.com, www.deccanhearld.combwww.timesofindia.comcwww.ksiidc.com/tender.html, www.projectsmonitor.com/detailnews.asp?newsid=15665 dwww.deccanchronicle.com, 13 Feb 2013

BangaloreaMetro

Project Details Timeline

Phase 1

Phase 2

bMonorail

High Speed Rail cLink

Peripheral Ring dRoad

Bellary Elevated

Expressway

Signal Free Outer

Ring Road

Expansion of

Bangalore

International eAirport

BMRDA Satellite fTownships

Satellite Town Ring gRoad(STRR)

Intermediate Ring hRoad(ITRR)

The proposed mass rapid system

for Bangalore 41 km of elevated

and underground rail network with

36 stations in Phase I

Phase II: Extension of Phase 1 lines connecting Whitefield (in the East), JP Nagar

(in the South), Kengeri (to the West) and Nelamangala (to the North).In addition, two new lines, one connecting Nagawara to Gottigere and the other

connecting BTM Layout to Bommasandra has been proposed.

North-South Corridor: Hesarghatta Cross

(Peenya Industrial area) to Banashankari

via Malleswaram, Majestic and Jayanagar.East-West Corridor: Bypanahalli - Mysore

Road via Indiranagar, M.G.Road, Majestic

and Vijayanagar.

-

Phase I

to be fully

operation

al by

2015.

Status Impact

Under

construction

(Phase I under

construction

& Reach 1

operational)Better connectivity

from all parts of the

city to the CBD

Travel time

reduction

Proposed

(Geo-technical

survey is under

progress)

Project will act as a feeder network

to the metro rail. Four corridors

have been identified covering 60

km.

Corridor I:Kanakapura Road - Mysore

Road,Kathriguppe - National CollegeCorridor II:Bannerghatta National Park -

AdugodiCorridor III:Tumkur Road - Bellary RoadCorridor IV:Mysore Road - Tumkur Road,

Magadi Road - Toll gate

The project will cover a distance of 34 km

starting from BRV Grounds, passing

through Cubbon Road, Raj Bhavan Road,

Hebbal and Yelahanka to the Airport

The High Speed Rail will connect

the CBD with the Bangalore

International Airport in Devenahalli.

-

-

Formal

approval for

the project is

awaited

Better access to

Metrorail networkBetter connectivity

from peripheral

areas to the city

Proposed Improved connectivity between CBD and International Airport

The Peripheral Ring Road is a

Public Private Partnership (PPP)

project to be executed by the BDA.

This ring road will circumnavigate

the city connecting all the major

highways.

NICE Ring Road connecting Hosur Road

and Tumkur Road has been declared as

Phase 1 of PRR.

Phase 2 of the Ring Road will connect

Tumkur Road, Bellary Road, Old Madras

Road, Sarjapur Road and Hosur Road.

Proposed

(30

months

from the

start of

construc-

tion)

Tenders

invited for

Phase 2

Diversion of truck

traffic from the city

roads will ease

traffic situation on

ORR and within the

city. Second, will

open up new areas

for development

A six-lane elevated expressway is

proposed to connect Hebbal to

Yelahanka. A ten-lane (6 lanes with

two services lanes on either side)

highway will connect Yelahanka to

Bangalore International Airport.

Hebbal to Yelahanka and Yelahanka to

Bangalore International Airport2014 (E) Under

Construction

Under

Construction

Under

Construction

2014 (E)

2014 (E)

The existing Outer Ring Road will be

made signal free with the construction

of 7 more flyovers and an underpass

Expansion of Terminal 1 to double its capacity. To be increased to over 17 million

passengers a year.

Hosur to Silk Board Junction

Better and faster

connectivity to the

International Airport

Traffic

decongestion and

reduced travel time

to key IT hubs

To increase

passenger and

aircraft handling

capacity

Five townships proposed at Bidadi, Ramanagaram, Solur, Sathanur and Nandagudi.

Total area: 61,000 acres -

-

-

8 lane road connecting the proposal BMRDA satellite townships. Will connect the

satellite towns of Doddaballapur, Devanahalli, Hoskote, Anekal, Kanakapura,

Ramanagaram and Magadi with each other and also to the Bangalore International

Airports

8 lane road around the Bangalore Metropolitan region. Will come up in-between

Peripheral Ring Road and Satellite Town Ring Road. Will pass through

Nelamangala, the southern parts of Dobbspet, Doddaballapur and Devanahalli,

areas about 6 km from International Airport, the eastern parts of Hoskote and

Anekal, besides Harohalli, Bidadi and Magadi.

Proposed

Proposed

Proposed

Expansion of

Bangalore city and

formation of new

peripheral locations

Will open new

areas for Real

Estate development

Ease traffic

congestion in

Greater Bangalore

Region and spur

Real Estate

activities

INFRASTRUCTURE PROJECTS

The development of urban infrastructure in Bangalore has not been able to keep pace with the rapid

population growth and economic development of the city.

Table: On-going & proposed infrastructure projects in Bangalore

Expected Completion Time 0 - 3 years

10

Expected Completion Time 3 - 5 years Expected Completion Time more than 5 years

ewww.bengaluruairport.com f-gwww.bmrda.kar.nic.inhwww.timesofindia.com


Bangalore continues to be one of the best cities for real estate sector in the country-absorbing close to 1/3rd of the total

office space of the country. Since 2009, the city witnessed an

average annual absorption in the range of 7.5 and 9 million

sqft. With a total absorption (including pre-commitments) of

5.7 million sqft for H1 2013, the city is expected to achieve

similar statistics this year as well.

Among all the micro-markets, ORR continues to remain the most preferred market for expansion by IT/ITeS companies

mainly due to availability of Grade A office spaces and

support infrastructure. Honeywell Technologies, Volvo,

Goldman Sachs and Adobe have expanded and / or

consolidated their operations along ORR in the last two

years.

Office space take-up in Whitefield during 2012 - 13 was mainly due to expansion and consolidation by existing

companies in this micro-market. Schneider Electric, TCS and

Societe General are prominent companies that have

expanded operations in the city.

Healthy office space absorption and on-going infrastructure projects have fuelled residential demand in the city.

Absorption of residential units has grown at a CAGR of 31%

since the year 2010.

Bangalore witnessed a launch of 40,336 units in the year 2012 and absorption in the same year stood at 33,988 units.

H1 2013 witnessed a launch of nearly 26,620 units and

absorption during the same period stood at 18,076 units.

Currently the most active residential micro-markets of the city are ORR-Sarjapur stretch, Whitefield and Bangalore North.

Off-central location of Magadi Road is witnessing renewed

interest due to the availability of industrial land for

redevelopment in the inner ring city.

In 2012-13, Bangalore witnessed entry of national developers like Phoenix Group and the Address Makers by

India REIT.

Apartments and villas are the key established residential product types in Bangalore. 2012 saw Villaments gaining

prominence as a product type since it offers the best of both

apartments and villas. Leading developers like Habitat

Ventures, Nitesh Estates, Embassy Group have launched

villament projects in the city.

REAL ESTATE MARKET SUMMARYO

FF

ICE

RE

SID

EN

TIA

L

Bangalore North witnessed increased momentum during H1 2013 with manufacturing and aerospace companies like Wipro

Systems & Controls and Starrag Heckert commencing

operations in this region.

City’s real estate market witnessed sustained traction for SEZ spaces in H1 2013; however, a large part of the planned supply

is not likely to materialize due to restricted time limit until March

31, 2014.

Office rentals across micro-markets largely remained unaltered during H1 2013.

Economic outlook for the city remains strong in medium term as many large IT/ITeS companies, Engineering and Automobile

MNCs have impending growth plans for Bangalore.

Sky Villas, duplex apartments with large terrace spaces, is another new concept introduced in the luxury segment.

Although this concept was prevalent in Mumbai, it has recently

gained prominence in Bangalore with the launch of luxury

apartments in off-central regions.

Capital Values for residential projects witnessed an increase in the range of 5% - 25% across micro-markets. Among micro-

markets- Tumkur Road, ORR-Sarjapur Stretch and Whitefield

observed the highest appreciation.

Bangalore remained one of the favoured real estate markets for Private Equity Funds resulting in their sizeable

participation in this asset class. Besides residential asset

class, commercial asset class also witnessed large

investments by PE funds during the last one and half year.

Strong economic outlook is likely to propel healthy growth rate in residential segment.

8As per Massachusetts Institute of Technology (MIT), Technology Review

8The real estate sector in Bangalore, one of the 8 largest Technology Innovation Clusters , will continue its

growth trajectory in future as well.

Favourable demographics, opening up of FDI in single and multi-brand retail and availability of large land parcels have

not only led to increase in mall space over the years but have

also facilitated development of larger malls.

Bangalore with 7.7 million sqft of operational mall space will see completion of 5.7 million sqft of mall space by the year

2016.

Based on the existing, under-construction and planned malls, Kanakapura Road, Bannerghatta Road, Mysore Road, Hosur

Road and Tumkur Road are in a balanced state in terms of

mall development vis-à-vis residential activity. ORR-Sarjapur

stretch is one of the most promising locations for

development of a shopping mall in short term while Whitefield

due to high under trading mall spaces offers less advantage.

Some of the national and international brands that entered Bangalore in 2012 - 13 are Krispy Kreme, Promod, Aldo,

Charles and Keith and Debenhams.

Continuous expansion of the city limits have led to availability of large mills / industrial land for redevelopment.

Development of mixed-use integrated townships

encompassing office, retail, residential and hotels has gained

prominence over the years.

Bangalore’s hospitality sector is primarily driven by the IT/ITeS sector with business travelers accounting for majority

of the room occupancy as compared to MICE and leisure

travelers. The city today has 9,585 rooms and 1,157 rooms

are expected to enter by Q1 2014.

Currently the hotel industry is dominated by 5 Star Category Hotels. Nearly 42% of the total operational rooms fall under

this category. After 2008, the city started witnessing entry of

many branded budget hotel operators. Some of the key

operators in the city are IBIS by Accor Group, Keys Hotel by

Berggruen Hotels and Ginger by Tata Group.

Bangalore will continue to see entry of 4 and 5 Star Category hotels as most of the under-construction hotels expected to

be operational in medium term are positioned in these

categories.

Occupancy levels in the city range between 56% and 59%.

Room rates for the 5 Star category ranges between INR 7,000 - 8,500 per night while they range between inr 4500-

5500 per night for the 4star category.

RE

TA

ILH

OS

PIT

ALIT

Y

Mall rentals have appreciated in the range of 5 - 20% in last one year. UB City on Vittal Mallya Road witnessed highest

appreciation in rentals due to lack of luxury spaces in the city.

The Forum at Koramangala and Garuda Mall at Magrath

Road also witnessed significant appreciation in the last one

year.

High-street locations over the last one year witnessed lesser appreciation as compared to shopping malls. Rentals across

the locations grew in the range of 5 - 12%. Among the high-

street locations, Vittal Mallya Road, which is a key high street

location for luxury brands, witnessed a significant increase in

rental value over H1 2012 due to limited supply of retail space

for luxury spaces. Other high-street locations that witnessed

growth in rental values included Kammanahalli Main Road

and M.G. Road.

Due to relaxation of FDI norms for both single and multi-brand retail, the retail sector in Bangalore is posed to grow in the

coming years.

Currently the most sought after development model in Bangalore is the management contract, wherein the landlord

undertakes the land acquisition, construction and fit-out of the

hotel and the hotel operator manages the operations.

Bangalore is increasingly witnessing development of hotels as a part of mixed use developments with residential,

commercial, retail and hospitality in the same project.

The city today has potential for development of serviced apartments and branded 3 Star category hotels.

Whitefield, ORR-Sarjapur Stretch, Bangalore North and Tumkur Road are among the most preferred locations by

hotel operators.

In light of the upcoming developments in the IT/ITeS sector and under-construction rooms, demand for hotels is

expected to remain unchanged in the short to medium term.

12

Source: Vestian Research, 2012


112 million sqft Total office stock in Bangalore

8.39 million sqft office space absorption in 2012 out of which

2.25 million sqft was SEZ

4.2 million sqft of fresh supply in H1 2013

5.7 million sqft of absorption in H1 2013 including2.0 million sqft of pre-commitment

7.13 million sqft Supply in 2012 out of which 3.3 million sqft was SEZ

16% overall vacancy level in Bangalore

OF

FIC

E

MA

RK

ET

OV

ER

VIE

W

Figure: Bangalore's Office Space Supply and Absorption

0

2

4

6

8

10

12

14

Fresh supply Absorption

16

2009 2010 2011 2012 2013(E) 2014(E)

14

Bangalore continues to witness steady office space demand since 2009 and absorption exceeded supply for the third consecutive year since 2010.

Since 2009, Bangalore witnessed an average annual absorption in the range of 7.5 and 9.0 million sqft.

H1 2013 witnessed absorption of 5.7 million sqft of office space while fresh supply stood at 4.2 million sqft. Of the total

absorption in H1 2013, 2.0 million sqft of the space was pre-

committed.

Absorption in the city has exceeded for the third consecutive year since 2010. Cautious approach adopted by the

developers has led to controlled supply and pre-

commitment activities have helped to maintain demand-

supply equilibrium in Bangalore’s office space market in

2012.

mill

ion

sq

ft

16

Vestian Estimate

OFFICE MARKET OVERVIEW

CBD

Operational Space

Micro-Location

SBD

Non-Captive Space (in million Sqft/Month)

Non SEZGrade A

Captive Space (in million Sqft)

SEZGrade A

Non SEZGrade B

Total Non SEZ SEZ Total

ORR

PBD

Under-Construction Space

Pre-committed Space

Available Space

Planned Space

Operational Space


Pre-committed Space

Available Space

Planned Space

Whitefield

Hosur Road & Electronic City

Mysore Road

Bangalore North

Operational Space


Pre-committed Space

Available Space

Planned Space

Operational Space


Pre-committed Space

Available Space

Planned Space

Operational Space


Pre-committed Space

Available Space

Planned Space

Operational Space


Pre-committed Space

Available Space

Planned Space

Operational Space


Pre-committed Space

Available Space

Planned Space

7.52

134

-

0.70

0.10

-

-

-

-

-

4.35

0.1

-

0.92

-

11.87

1.44

0.00

1.62

0.10

0.70

-

-

-

-

-

-

-

-

-

-

-

-

-

0.70

22.2

1.68

0.03

1.20

0.70

-

-

-

-

-

5.56

-

-

1.3

-

27.76

1.68

0.03

2.50

0.70

1.3

-

-

1.7

-

-

-

-

-

-

-

-

1.7

-

1.3

12.84

8.94

0.24

2.51

37.33

16.40

5.50

0.84

0.78

10.36

0.25

-

-

0.06

-

29.49

14.44

1.08

3.35

47.69

2.25

0.45

-

1.0

-

-

-

2.5

-

-

0.45

-

3.5

-

2.25

17.77

0.71

-

4.46

5.41

4.66

0.96

0.20

1.04

15.22

6.61

-

-

1.89

-

29.04

1.67

0.20

7.39

20.63

10.5

4.1

-

2.5

-

-

-

1.1

-

0.2

4.1

0

3.6

0

10.7

8.00

1.70

-

2.37

0.40

-

-

-

-

3.0

2.41

-

-

1.09

-

10.41

1.70

-

3.46

3.40

13.1

-

-

4

-

-

-

1.1

-

5.1

-

-

5.1

-

18.2

- 3.20

-

-

0.13

3.50

0.08

-

-

0.05

-

3.28

-

-

0.18

3.50

-

-

-

-

-

-

-

-

-

-

-

-

-

0.35

2.04

0.10

0.02

19.20

0.04 0.39

2.04

0.10

0.11

23.03

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- -

-

-

-

-

3.80

-

-

0.09

-


Table: Bangalore Office Space Statistics H1 2013

The city accounts for 112 million sqft of operational non-captive office space. The micro-markets Outer Ring Road (ORR) and

Whitefield in PBD dominate the office space market with almost

an equal share of 30% each amongst all others. Though,

Electronics City in PBD accounts for a mere 8% of non-captive

office space, this micro-market has significant presence of

captive campuses. CBD and SBD locations continue to attract

occupiers however availability of land is a deterrent.

Vacancy levels in the city range between 9% and 14%. However, PBD locations account for a high vacancy level of 26%. This may

be attributed to the presence of large number of Grade B / B+

developments in these micro-markets with limited amenities as

compared to Grade A developments.

ORR today accounts for nearly 30 million sqft of operational IT/ITeS spaces. ORR witnessed the largest supply of office

space in Bangalore accounting for nearly 56% of the city's new

supply for 2012. Further, this micro-market also witnessed 42%

of absorption during 2012 and H1 2013.

ORR will continue to remain a preferred destination by IT/ITeS companies in medium term mainly because of availability of

Grade A office space, land for expansion and required support

infrastructure. Some of the prominent IT occupiers namely

Goldman Sachs (1.6 million sqft), Adobe (1.43 million sqft),

Honeywell Technologies (1.0 million sqft) and Samsung (0.45

million sqft) have expanded their base in this micro-market.

Volvo is developing its captive campus in this micro-market; the

company has bought 1 million sqft of office space in Bagmane

World Technology Centre. Apart from Volvo, Intel and Cisco are

also expanding their captive campuses along ORR.

Today, Whitefield has 29 million sqft of operational IT/ITeS office (non-captive) space of which nearly 7.4 million sqft is vacant.

Existing companies in Whitefield are consolidating and

expanding their operations within the region. Some of the

companies that have expanded their operations are Schneider

Electric (0.5 million sqft) and TCS (0.3 million sqft).

Electronics City, a 680-acre electronics park is phased in three phases. Phase I (332-acre) and Phase II (148-acre) in total

account for 8.6 million sqft of non-captive office spaces. Both

these phases have IT/ITeS, electronics and hardware

manufacturing companies. Infosys, TCS, HCL and Wipro have

their captive campuses in this region. Electronics City Phase III

(100-acres) is anticipated to be established as Biotech Hub.

16

ORR, for the next 3 - 5 years is expected to remain a preferred destination among IT / ITeS occupiers while

Bangalore North is anticipated to gain momentum by 2015.

Office space in Mysore Road is restricted to Global Village Tech Park. The IT/ITeS SEZ has close to 3.2 million sqft of operational

IT space. Accenture (0.9 million sqft) and Mindtree Technologies

(0.5 million sqft) are among the key companies that have

expanded their operations in this region.

Bangalore North, until 2013, witnessed activity from manufacturing and aerospace companies. Wipro Systems and

Controls (SEZ) and Starrag Heckert have commenced their

operations in Bangalore Hardware Park.

Bangalore North has seen a higher preference for a built-to-suit campuses over leased office spaces. Some of the prominent

companies developing their facility are:

Shell Technologies is developing its Research and

Development (R&D) unit in Bangalore Hardware Park. The

40-acre campus will have built-up area of nearly 2.5 million

sqft.

Tyco Electronics is setting-up a manufacturing unit spread

across 25-acres in Aerospace Park, Devanahalli.

Bangalore North witnessed first major office space transaction in H1 2013; SLK Software leased 0.2 million sqft of office space in

RMZ Latitude on Bellary Road. The region is likely to see

completion of nearly 2 million sqft of office space by the end of

2014. Key developers with presence in this location include

Assetz, RMZ Corp, Embassy Group, Salapuria Sattva, Brigade

Group, Hinduja Developers and Gokaldas Images.

Bangalore West is likely to see development of mixed use townships. Apart from existing project by Brigade World Trade

Centre, Tata Realty & Infrastructure Limited is expected to

develop one of its flagship projects in this area. The integrated

township is spread over 1.7 million sq ft in Yeshwantpur.

Figure: Stock Vs Absorption and Vacancy Levels across Bangalore

micro-markets

0

5

10

15

20

25

30

35

Stock Absorption

16

CBD SBD ORR PBD

mill

ion

sq

ft

40

45

50

14%

9%11%

26%

Vacancy

0

5%

16

10%

15%

20%

25%

30%V

aca

ncy

(%

)


Bangalore has 24.3 million sqft of operational multi-tenanted IT/ITeS Special Economic Zones (SEZs) space. Of this, ORR

accounts for nearly 16.4 million sqft while PBD locations of

Whitefield and Mysore Road account for the remaining 7.9

million sqft of SEZ spaces.

Year 2012 and H1 2013 witnessed absorption of 2.35 and 2.1 million sqft respectively of SEZ spaces. ORR and Whitefield

are the two micro-markets, which have witnessed

considerable SEZ absorption during the last one year. ORR

accounted for nearly 75% of total SEZ absorption and PBD

locations of Whitefield and Mysore Road collectively

accounted for 25%.

Some of the major occupiers that leased out space in last two years are Honeywell Technologies (1.0 million sqft),

Accenture (0.5 million sqft), TCS (0.3 million sqft), Societe

General (0.07), Cognizant Technologies (0.75 million sqft)

and Mu Sigma (0.33 million sqft).

Currently about 5.15 million sqft of non-captive SEZ space is under-construction and expected to enter the market before

2014. However, a large part of the planned supply - nearly 31

million sqft of SEZ space is not likely to materialize due to

limited time frame. (As per the draft Direct Tax Code 2010,

units in SEZ spaces have to be operational before March 31,

2014).

The Government of India (GoI) has relaxed norms for key criteria such as minimum land requirement. As a result of the

above revisions, it will be possible for smaller IT companies

to develop their own SEZ units. Also, developers who have

already constructed 100,000 sqm are allowed to utilize the

remaining land for residential purpose.


The city continued to witness sustained traction for IT SEZ spaces mainly along ORR and Whitefield in PBD.

Figure: SEZ Supply and Absorption in Bangalore

0

5

10

15

20

25

30

35

Supply Absorption / Pre-committed Space

16

Operational Space Under-ConstructionSpace

Planned Spacem

illio

n s

qft

40

24.26

22.31

6.46

1.04

35.88

3.83

Particulars Before April 2013 w.e.f April 2013

Minimum LandRequirement

10 Hectares None

Minimum Built-up Area

100,000 sqm

Exit Policy for

SEZ units

None

10100,000 sqm for 7 major

cities

50,000 sqm for category B

cities

25,000 sqm for other cities

Transfer of ownership of SEZ

units including sale permitted

9Table: Key Revisions in norms for IT / ITeS SEZ

9Annual Supplement 2013 – 14 to the Foreign Trade Policy 2009 – 14, released on March 18, 2013

10Refers to Delhi NCR, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad and Pune

Tenant

NDS

Name of the Building Area Leased (Sqft) Micro Location Year of Transaction

Intel Technology

Atos Origin

Cerner India

Amazon

Pritech Park

RMZ Ecospace

Embassy Tech Square

400,000 ORR

ORR

ORR

Whitefield

2012

67%

Consolidation

Expansion

Relocation

New Entry

10%14%

9%

18

2012 - 13 witnessed expansion by major IT/ITeS companies

Year 2012 witnessed absorption 8.39 million sqft of which nearly 65% was a result of expansion by major companies.

Amazon.com, Intel Technologies, Caterpillar, Capgemini

and Samsung were among the prominent companies that

expanded their operations in the city.

Of the total deals reported during 2012, nearly 20% were consolidation and relocation deals and 15% were new

entrants to the market. Canadian High Commission, Wells

Fargo were some of the companies that commenced

operations in the city during 2012.

As of H1 2013, IT/ITeS companies continue to expand their operations in the city. Of the total absorption (including pre-

commitments), 70% of the deals were due to expansion by

major companies and 25% of the transacted space was for

re-location and consolidation of operations. Linkedin

started its operations in Bangalore during H1 2013.

Figure: Occupancy Strategy 2012 - H1 2013

Table: Key Lease Transactions in Bangalore during 2012 & H1 2013

In Mobi

Infosys

Honeywell

Alti Source

Texas Instruments

Gopalan Millenium Towers

JP IT Park

RMZ Ecoworld

Manyata Embassy Business Park

Pritech Park

Brigade WTC

Bagmane Tech Park

204,000

121,000

125,000

175,000

1,000,000

356,000

120,000

294,000

100,000

Eletronics city

ORR

ORR

ORR

SBD

SBD

2012

2012

2012

2012

2013

2013

2013

2013

2013



Bangalore witnessed limited investments by Private Equity (PE) funds for office space compared to

Mumbai and Delhi NCR since land for development of commercial spaces in the city is allotted by KIADB at

low prices and the availability of pre-commitment loans at low interest rates.

Bangalore witnessed one of the country’s biggest commercial real estate acquisition deals by the US based Private Equity

fund – Blackstone Group. As a part of the deal, Blackstone

purchased stake in a SPV comprising of three commercial

properties (2 in Bangalore and 1 in Pune) totaling over 10

million sqft.

Fund Owner Project

Blackstone Embassy

Group

Manyata Embassy

Business Park SEZ

Blackstone, GIC

Singapore and

HDFC Property

Fund

Vikas

Telecom

Vrindavan Tech Village

Amount(INR Cr)

875

1,951

Baring Private

Equity Partners

RMZ Corp 6 million sqft of office

space

500

Bannerghatta Road

Micro-Location

CBD

SBD

Koranmangala

Indiranagar

Intermediate Ring Road

PBD

Mysore Road

Electronics city

Whitefield

Bangalore North

ORR

Warm Shell Rental Value (INR/sqft/month)

Grade A Grade B

Non SEZ SEZ Non SEZ

Capital Values (INR/Sqft)

Grade A

80 - 100 60 - 70-

50 - 55 40 - 45-

45 - 50 40 - 45-

35 - 45 30 - 35 -

70 - 80 50 - 60-

9,000 - 12,000

6,500 - 8,000

26 - 28 18 - 20-

26 - 30

24 - 26

45 - 55

32 - 34 20 - 25

-35 - 38

25 - 26

-

5046 - 48 38 - 40

3,200 - 3,700

4,500 - 5,000

-

-

5,000 - 6,200

Office rental values remained unchanged in most micro-markets during 2012 - H1 2013 owing to controlled

supply and healthy absorption levels. Investors are capitalizing Grade A office spaces between 11% and

13% whereas developers are capitalizing it at 8% to 10%.

Majority of the available Grade A spaces in CBD locations are fully-furnished mainly due to limited availability of fresh supply in

this micro-market.

Despite healthy absorption and pre-commitment levels, rentals in the ORR remained unchanged which is a result of huge planned

inventory and large built-to-suit transactions in this micro-market.

Table: Bangalore - Office Rental and Capital Values

Old Airport 45 - 50 - 32 - 36

Table: Key PE deals for office space in Bangalore during 2012 - YTD

Qatar Investment Authority, a sovereign fund invested in RMZ Corp with a focus of investing in commercial properties in

Bangalore, Hyderabad, Chennai and Pune.

Source: www.vccircle.com

20

H1 2013 has witnessed entry of 4.2 million sqft of office space.

Another 4.9 million sqft of office space is likely to enter in H2

2013, totaling the fresh supply for 2013 to 9.1 million sqft.

Absorption in 2013 is pegged between 8.5 and 9.0 million sqft.

ORR, for the coming three years is expected to remain a

preferred destination among IT/ITeS occupiers. The micro-

market has witnessed substantial activity in the past three

years and is expected to continue the trend with significant

planned supply.

With companies initiating development of their campuses in

Bangalore North, this micro-market is anticipated to gain

momentum by 2015.

Rental and capital values in Bangalore are expected to remain

unchanged in short term. Besides, increase in rentals is

expected in prominent Grade A IT Parks due to controlled

supply and healthy leasing activity.OU

TL

OO

K -

OF

FIC

E


40,336 units launched during 2012

31% CAGR of residential absorption

5% - 25% annual capital appreciation range

3% - 7% range of annual average rental yield

33,988 unitsabsorbed in 2012

RE

SID

EN

TIA

L

MA

RK

ET

OV

ER

VIE

W

26,620 units launchedduring H1 2013

18,076 units absorbed in H1 2013

Figure: Supply and Absorption as per ticket size in Bangalore, H1 2013

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Supply Absorption

16

< 25L 25L-50L 50L-1Cr 1Cr-5Cr >5Cr

22

Bangalore residential market witnessed a launch of 40,336 units including both Class A and Class B projects in 2012. This

was a drop by 8% compared to the number of launches in 2011.

Total absorption in Bangalore during the year 2012 was 33,988 units in Class A and B categories. Absorption of residential units

in Bangalore is growing at a CAGR of 31% over the last 3 years.

H1 2013 witnessed launch of 26,620 units and absorption for corresponding year stood at 18,076 units.

Majority of these new launches have a ticket size in the range of INR 50L to 1Cr (Premium segment). The remaining were in the

INR 25L to 50L (Mid-segment); INR 1Cr to 5Cr (Luxury

segment). Launches in the < INR 25L (Budget segment) and >

INR 5Cr (Super-luxury segment) were less than 1% of the total

number of units launched.

Analyzing new launches, absorption and availability across the various segments- there is a demand for units in budget, mid-

segment and super-luxury categories. However, if the launches

continue at the same levels, there will be an oversupply

situation in the premium and luxury segments by 2014.

93% of the new launches were apartments and 7% were villas. Absorption also followed a similar trend with apartments

accounting for 94% and villas accounting for 6% of the total

absorption witnessed in H1 2013.

Among micro-markets, Bangalore North witnessed highest number of launches accounting to 20% of the total units

launched. Whitefield and ORR-Sarjapur with 18% and 17% of

total launches respectively were among the other micro-

markets to see high activity.

Nu

mb

er

of

Un

its

RESIDENTIAL MARKET OVERVIEW

Again Bangalore North, ORR-Sarjapur Road and Whitefield micro-markets witnessed highest absorption; accounting for

29%, 16% and 14% of total absorption respectively.

Off-central location of Magadi Road is witnessing renewed interest due to the availability of industrial land for

redevelopment in the inner ring city.

Bannerghatta Road, Mysore Road and Kanakapura Road witnessed subdued activity in terms of new launches.

Unit sizes ranged between 3,000 - 6,000 sqft in Central and Off-central locations. In peripheral locations like Whitefield, ORR-

Sarjapur Road, Bangalore North and Bannerghatta Road- the

average unit size ranges between 1,250 - 2,500 sqft for

apartments and 2,500 - 4,500 sqft for villas. In micro-locations

like Tumkur Road and Hosur Road where target audience is

predominantly industrial workers, the unit size range between

900 - 1,800 sqft for apartments and 1,500 - 3,000 sqft for villas.

Annual capital appreciation ranges between 5% - 25% with maximum appreciation of 25% observed in Tumkur Road, due

to Metro connectivity. Other locations that witnessed high

capital appreciation include ORR-Sarjapur Road and

Whitefield.

Annual average rental yield in Bangalore ranges between 3% - 7% with Bangalore North and Whitefield offering the best

returns of upto 7% and 6% respectively.

Segments in INR

Supply includes fresh supply for H1 2013. Absorption includes sale of fresh and unsold stock of

previous years.

PE Firm

Madison India

RE Fund Ltd.

Developer Building LocationAmount

(in million USD)

GIC (Singapore

Soveriegn Fund)

Ask Property Fund

Redfort Capital

Ask Property Fund

APG and Group of

investors

Portman Holdings

Sun Apollo

Pragnya

Shriram Land

Developers India Ltd.

Brigade Enterprises

Mantri Developers

Prestige Estates

Godrej Properties

Tata Housing

Sobha Developers

Habitat Ventures

Shriram Properties

Residential PlottedDevelopment

-

Land Acquisition

Residential

Residential

Residential

Residential

Promont

Sarjapur and

Meesaganahalli

Whitefield

Bangalore

Lal Bagh Road

-

Banashankari

Bangalore East

Bannerghatta Road

5.5

19

18.2

14

36

138

12

9.2

5

Source: www.vccircle.com


Residential sector is the most preferred Real Estate segment for investment in Bangalore. Among the prominent channels available

for funding real estate projects are construction finance from

banks, private equity (FDI compliant & domestic funds) and Non-

Banking Financial Corporations (NBFCs). Apart from these,

overseas funding for Real Estate sector include External

Commercial Borrowings (ECB). However, ECBs can be used to

fund only low-cost affordable housing projects.

Despite availability of construction finance from banks at a low cost, developers are evaluating alternate sources for financing the

project mainly due to end-use restrictions. While selecting an

investment partner, sought after parameters for the developer

include availability of funding at land aggregation stage, lesser

end-use restrictions and lower monitoring of the funds.

PE funds and NBFCs are the major channels available for financing large-scale residential developments in the city. Opening

of Real Estate sector in the year 2005 to FDI led to entry of Private

Equity (PE) funds in this sector. Until 2008 access to PE funds was

less challenging and funding was available at land aggregation

stage. However post 2009, funds prefer to evaluate projects post

land aggregation stage. PE funds today evaluate preferred /

promote return structure with Grade A developers. Also, minimum

IRR evaluated is 25%, although a few funds have exited with a

return as high as 35%.

NBFC finance through structured debt / mezzanine finance offer guaranteed returns and fixed timelines for exit. In addition,

provision of collateral including land and / or corporate

guarantees are a pre-requisite to avail funding through NBFCs.

Coupon rates for NBFC ranges between 18% - 24% depending

upon the reputation of the developer and project attributes.

Exit timelines for both PE funds and NBFCs range between 3 - 5 years.

Launch of Real Estate Investment Trust (REIT) on the Alternative Investment Fund (AIF) platform is expected to

positively impact the industry.

Table: Key PE investments in Bangalore residential market during 2011-12

PE funds have invested close to INR 1,386 Cr in Bangalore’s residential market during 2012.

--


24

Major Roads

Outer Ring Road

NICE Ring Road

Metro Rail Operational

Major Rail Phase I Under Construction

Proposed Metro Rail Phase II

Proposed Monorail



Elevated Express Highway Under Construction

IT/ITeS Clusters

Major Industrial Areas

Major Landmarks



Peenya Industrial Area

ITPB

Electronic City

OFF-CENTRAL

BANGALORE NORTH

TUMKURROAD

MYSOREROAD

KANAKAPURAROAD

BANNERGHATTAROAD

HOSURROAD

SARJAPUR ROAD

WHITEFIELD

OLD MADRASROAD

Manyata EmbassyBusiness Park

Bagmane Tech Park

Cessna Business Park

WiproGlobal Village

Technology Park

Doddaballapur Industrial Area

Hoskote Industrial Area

KumbalgoduIndustrail Area

Bommasandra & JiganiIndustrial Area

Figure: Bangalore's Residential micro-markets

Yelahanka

Outer Ring Road

Out

er R

ing

Roa

d

Outer Ring R

oad

HSR Layout

HMT Township

NH 7: To Hyderabad

Propo

sed

Perip

hera

l Rin

g Roa

d


NH 4: To Mumbai

Hebbal

BIEC

HesaraghattaCross

NIC

E Ring R

oad

NICE Ring Road

Nagawara

Banaswadi

MG Road

Krishnarajapuram

Byppanahalli

J.P. Nagar


Rajaji Nagar

RMVExtension

Vijayanagar

Mysore Road

Kengeri

Puttenahalli

Thalagattapura

Kanaka

pura

Road


SH 17:To Mysore

Silk Board

Gottigere

Begur

Koramangala

NH 7: To Salem

Bellandur

Brookefield

Pro

posed P

erip

hera

lR

ing R

oad

Magadi Road

PalaceGrounds

Marathahalli

Varthur

Bommasandra

Tumkur Road

Arkere

Bannerg

hatta R

oad

Hosur R

oad

NIC

E R

ing

Ro

ad

IISC

ITI

IIMB

Rajanukunte


Hennur


Seegehalli

Haralur

Hosa Road

Dommasandra

Kothnur

Jaraganahalli

Jalahalli

Budigere

NH 4: To Chennai

Mysore Road

Old Madras Road

Indiranagar

C.V.Raman Nagar

Old Airport Road

Bel

lary

Roa

d


Sarjapur Road

Varthur Road


Doddaballapur M

ain Road

Hope Farm Circle

Jayanagar

Majestic

M

BangaloreUniversity

M

M

M

M

M

MM

M

M

M

M

M

M

M

M

M

CBD

Key Metro StationsM

Target Segment: MixedKey projects launched in H1 2013: Legacy Mycon Vuv, Total Environment’s Lost in the Greens

Type of developments: High end luxury homesSocial Infrastructure Maturity Status: High

Target Segment: MixedKey Projects: Sobha Indraprastha, Prestige Westwood, Purva Sunflower, Total Environment’s Here comes the Sun and

Assetz Lumos.

Type of developments: This micro-location mostly comprises of first ring suburbs with industrial areas that are now open for

redevelopment thereby making large land parcels available for

mixed use development.

This micro-location has witnessed the development of not just apartments, but has come up with newer concepts like sky villas

(duplex apartments with large terrace spaces) in Divyasree’s 77

East; Doublements (Twin units) Divyasree’s 77 East, row

houses and villas.

Social Infrastructure Maturity Status: High


19units launched in H1 2013

33units absorbed in H1 2013

190units available as on H1 2013

INR 7,000 - 25,000 per sqft Capital value for each class A apartments

3% - 4%Average Annual Rental Yield

11% Average Annual price Appreciation

Target Segment: Predominantly IT/ITeS employeesDemand for residential segment is highest in this micro-market due to its proximity to Outer Ring Road (ORR) – one of the most

sought after IT/ITeS hubs in India.

Key projects: Prestige Ivy Terraces, KMB La Palazzo, SJR Parkway Homes, VBD Azure, LGCL Puevlo.

Social Infrastructure Maturity Status: Medium

Central

Off Central


1,116units absorbed in H1 2013

3,340units available as on H1 2013

INR 5,000 - 11,000 per sqft Capital value for class A apartments

3% - 4%Average Annual Rental Yield

11% Average Annual price Appreciation

INR 11,500 - 13,000 per sqft Capital value for class A villas / row-houses

ORR - Sarjapur Road (Marathahalli to Silk Board Junction)

4,485 launched in H1 2013

11,011 units available as on H1 2013

INR 4,790 - 11,350per sqft Capital value for class A villas / row-houses

3% - 4% Average Annual Rental Yield



15% - 20%Average Annual price Appreciation

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Whitefield

Old Madras Road








Target Segment: Predominantly IT/ITeS employeesKey projects launched in 2013 include: Skylark Ithaca, Brigade Begonia, Rohan Avrithi

Social Infrastructure Maturity Status: HighClass B project launches were higher than Class A.

3,281units launched in H1 2013







Target Segment: Industrial workersKey Projects launched in 2013: Brigade Golden Triangle and Prestige Glenwood.

Social Infrastructure Maturity Status: LowInfrastructure: This location is strategically located between Bangalore

International Airport, Whitefield and Outer Ring Road, the three

economic magnets that will lead the economic growth in the next

5 -10 years.

The announcement of the Chennai-Bangalore expressway

connecting Hoskote will also lead to the growth of automobile,

aerospace and manufacturing sectors around Hoskote.

Currently, this location lacks water supply and social

infrastructure which is the key reason for low absorption by end

users. Absorption is mostly investor driven.


Bannerghatta Road

No units launched in H1 2013


800 units available as on H1 2013

INR 2,100 - 6,300 per sqft Capital value for Class A apartments



INR 8,500per sqft Capital value for class A villas / row-houses

Target Segment: IT/ITeS employeesKey Projects launched in 2012: DLF Bella Greens was the only Class A project launched in this micro-market in 2012.

No new projects launched in H1 2013Social Infrastructure Maturity: High. However, travel time is an issue during peak hours.

Infrastructure: Proposed new line of Metro connecting Nagawara to Gottigere

Bangalore North








Target Segment: MixedKey projects: Ashed Properties’ Regency La Majada, Prestige Augusta Golf Village, Samruddhi Rhythm, Bhartiya

City - Phase II and Equinox Water’s Edge - Phase II.

Social Infrastructure Maturity Status: LowInfrastructure: This micro-location has the advantage of availability of large land parcels. The completion of physical

infrastructure projects like Elevated Expressway to BIAL,

High Speed Rail Link and operationalization of government

promoted & private industrial and / or business parks in

Devanahalli are likely to improve the long term potential for

residential growth in this market.

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Hosur Road

Kanakapura Road








Target Segment: IT/ITeS employees, Industrial workersType of development: Class A developments are limited. Absorption was high in this micro-market and was next only to

Bangalore North and Sarjapur Road due to the availability of

lower priced apartment and villa projects as compared to prices

in other nearby micro-markets.

Key projects launched include Prestige Sunrise Park, Sattva Greenage - Phase II, Godrej E City - Phase II, Indya Estates - The

Greens.

Social Infrastructure Maturity Status: Medium

728 units launched in H1 2013







Target Segment: MixedKey Projects launched in H1 2013 are Golden Panorama and Mahaveer Carnation

Social Infrastructure Maturity Status: HighInfrastructure: Ongoing construction of Metro Rail Project Phase I.


Mysore Road

Tumkur Road

Target Segment: Predominantly industrialThis micro-market witnessed limited supply. Absorption was witnessed mostly in Grade A projects before NICE corridor.

Key projects launched include Provident Sunworth, VBHC Vaibhava, Gopalan Sanskriti and Kumar Properties

Princeville

Social Infrastructure Maturity Status: HighInfrastructure Projects: Metro Rail Phase I will improve connectivity to this micro-location.

2,385units launched in H1 2013







Target Segment: Industrial workersMajority of the projects launched in 2012 were in the mid-segment. However, this location also witnessed the launch of its

first luxury villa project by Godrej Properties.

Key projects launched in H1 2013 include Tata RivaSocial Infrastructure Maturity Status: HighInfrastructure: This micro-market was previously looked at as an industrial location, and is now undergoing a shift with metro

connectivity. However, in the long term, the proposal to shift units

within Peenya Industrial area and the micro-location’s proximity

to Bangalore International Airport will unlock land for commercial

Grade A developments, thereby making this location suitable for

the development of a range of residential projects.

274 units launched in H1 2013







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New project launches are likely to be in the range of 40,000 -

45,000 units whereas absorption is likely to be in the range of

33,000 - 35,000 units.

Since the announcement of additional interest benefits at the

Union Budget 2013-14 on home loans up to INR 25L for

projects within a ticket size of INR 40L, developers are likely to

come up with projects in the 25L - 40L bracket.

New project launches are expected to increase especially in

the budget and mid-segment category; however will be

subdued in the premium and luxury categories due to

availability of large number of under construction units.

Meanwhile, super-luxury projects are likely to do well in 2013.

Bangalore North, ORR-Sarjapur Road and Whitefield will

continue to witness major activity in the residential segment

with several projects already lined up for launch.

Key upcoming micro-locations include Tumkur Road and

Kanakapura Road due to improvement in infrastructure and

Old Madras Road for its strategic location and announcement

of new infrastructure projects. This will result in capital value

appreciation in these micro-locations.

Strong demand for office space in ORR and Sarjapur Road is

expected to appreciate the rental values in these micro-

markets.

The success of Integrated Townships like Brigade Gateway

and Prestige Shantiniketan, and availability of industrial land

for redevelopment in off-central locations (inner ring city)-

developers are likely to announce many more mixed-use

integrated township projects.

In terms of residential products, there exists a huge scope for

innovation in the budget and mid-segment housing. Increasing

use of technology in various aspects like design, construction,

project management, marketing and customer service is

necessary to arrive at newer products.

New brands likely to enter Bangalore residential market in

2013 include India REIT’s The Address Makers, Olympia

Group, Supertech and Sahara Group.


7.65 million sqft Total Mall space

operational in Bangalore0.5 million sqft vacancy in operational malls

0.78 million sqft is likely to enter in H2 2013

2.50 million sqft is pre-leased inunder construction malls

13.79 million sqft is under planning stage

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5.65 million sqftof mall space under-construction

0.00

0.50

2004 2013(E)

11Mall space statistics in the report are indicated in Gross Leasable Area (GLA) unless mentioned otherwise

GLA

in m

illio

n s

qft

32

Bangalore will add of 5.65 million sqft of shopping mall space by 2016

Bangalore witnessed completion of 1.29 million sqft11 of mall space during 2012; higher than Tier I cities of NCR and Mumbai.

As of H1 2013, operational shopping mall space in the city totaled

to 7.65 million sqft.

The city reported no new completion of malls during H1 2013. However, with three malls under construction, completion of 0.78

million sqft of mall space is anticipated by year end. Shopping

malls expected to enter the market during 2013 are Vaishnavi

Sapphire (0.25 million sqft) on Tumkur Road, World Market -

Phase I (0.18 million sqft) on Old Madras Road and MSR Regalia -

Elements Mall (0.33 million sqft) on Thanisandra Road.

Between 2004 and 2008, shopping mall space in the city grew at a CAGR of 8%; however, last four years 2009 - 12 witnessed

significant mall completions and the city’s mall space grew at a

CAGR of 20%.

Favourable demographics, opening-up of FDI in single and multi-brand retail and availability of large land parcels have not only led

to increase in mall space over the years but have also facilitated

development of larger malls. Until 2008, the malls were

predominantly neighbourhood and community malls with sizes

restricted between 0.35 and 0.60 million sqft while today the city

has witnessed completion of regional malls ranging between 0.75

and 0.90 million sqft.

Figure: Year-on-year increase in mall space in Bangalore

1.00

1.50

2.00

2.50

3.00

3.50

2005 2006 2007 2008 2009 2010 2011 2012 2014(E) 2015(E) 2016(E)

0.36 0.35 0.300.40

0.550.46

0.93

2.90

1.30

0.78

2.30

1.191.35

1 2 2 3 3 2 1 7 3 4 13 3

Total number of malls operational in the respective year

Vestian Estimate

RETAIL MARKET OVERVIEW

Total number of malls expected to be completed in the respective year


12CBD covers areas around MG Road, Brigade Road, Magrath Road, Richmond Road, Lavelle Road, Vittal Mallya Road, Cunningham Road, Langford Town, Brunton Road and Residency Road.13SBD Locations include areas of Indiranagar, CMH Road, Old Madras Road (till KR Puram), Banaswadi, Bellary Road, Koramangala, Kanakapura Road (till ORR), Jayanagar, JP Nagar,

VijaynagarSadashivnagar, New BEL Road, Sanjaynagar, Malleshwaram and few locations of Bannerghatta Road, Hosur Road Rajajinagar and Yeshwantpur.14Locations of Whitefield, ORR-Sarjapur, Electronics City and Hosur Road, Bannerghatta Road, Kanakapura Road, Mysore Road, Old Madras Road, Tumkur Road and Bangalore North.

SBD and PBD locations are likely to be focus areas for developments of shopping malls in next three to five

years.

The Forum (0.36 million sqft) in Koramangala, Garuda Mall (0.35 million sqft) at Magrath Road and Sigma Mall (0.18 million sqft) at

Cunningham Road are situated in Central Business District 12 13(CBD) and Secondary Business District (SBD) locations.

Growth in city’s population coupled with infrastructure projects like completion of Outer Ring Road (ORR), NICE Ring Road and on-

going metro rail project have provided impetus for development of 14retail spaces in Peripheral Business District (PBD) locations of

the city.

Further lack of availability of large land parcels in CBD of the city has fuelled development of shopping malls towards SBD and PBD

locations. Currently 4.5 million sqft of shopping mall space is

under-construction in these locations.

PBD location of Whitefield has witnessed highest mall space activity in the past few years. The micro-market accounts for 33%

of total operational mall space in the city. The micro-location is also

expected to see completion of 0.87 million sqft of mall space in

next three years. As a consequence of this large under trading

supply, the potential for retail development in this micro-location is

low. Under-construction malls in this location include Forum

Shantiniketan Mall (0.45 million sqft) and Xander Mall (0.42 million

sqft).

Based on existing, under-construction and planned malls Kanakapura Road, Bannerghatta Road, Mysore Road, Hosur

Road and Tumkur Road are in a balanced state in terms of mall

development vis-à-vis residential activity.

ORR Sarjapur Road is one of the most promising locations for development of a shopping mall due to high residential activity, low

existing mall space and no malls under construction.

Bangalore North and Old Madras Road have high potential for mall development in long term due to proposed developments in

commercial and residential sectors.

Currently, CBD, SBD and PBD locations respectively account for 10%, 42% and 48% of existing mall space and this ratio is

expected to remain the same in next three to five years. Although

PBD locations are expected to witness completions of more

number of malls than SBD locations, the latter is anticipated to

house larger malls designed mostly as regional or community

malls.

Today, shopping malls are being developed as an

integral part of a mixed-use development having an

appropriate mix of office spaces, residences and

hotels.

Continuous expansion of the city limits have led to availability of large mills / industrial land for redevelopment. These sick mills land

have facilitated development of mixed-use integrated townships

and over the years have emerged as preferred destinations for

development of shopping malls. Some of the key examples being

Brigade Orion (0.75 million sqft) on Kirloskar Factory land in

Rajajinagar, Mantri Square (0.93 million sqft) on Raja Mills land in

Malleshwaram and Salarpuria World Market (1.0 million sqft) on

BPL Factory land in Old Madras Road.

34

Bangalore mainly has shopping malls anchored around a department store / hyper-market chain and / or a

multiplex. The city offers an opportunity for development of specialty shopping malls revolving around a

theme.

Although Bangalore has the third largest High Net-worth Individual (HNI) population in the country, next only to Delhi and Mumbai, the

city has limited luxury mall space. The Collection Mall in UB City

and Leela Galleria in Hotel Leela Palace are the only available

luxury mall spaces in the city. The upcoming Galaxy Mall on

Residency Road, the luxury mall in West Court’s City View on

Bellary Road and luxury retail space within Ritz Carlton on

Residency Road are likely to add some luxury mall space in the

coming years.

Currently mall spaces are largely anchored around departmental stores or hypermarket chains. Until recent past, entertainment in

the malls was limited to multiplexes however; today it is growing to

a status of an important anchor.

The city lacks specialty malls focusing exclusively on sale of home & furnishing products, cars &auto-accessories, jewelry, electronics

& white goods. No such malls have been planned presently, but with

the Government opening FDI in multi-brand retail the city is likely to

witness entry of retail giants that will provide necessary impetus for

development of themed malls

High-street locations currently face traffic congestion, crunch in availability of parking space and lack of

unobstructed pedestrian walkways.

High-street, synonymous with a market, offers better brand visibility and rental advantage as compared to a shopping mall.

Brigade Road and Commercial Street in CBD and Indiranagar 100 thfeet Road, Malleshwaram 8 Cross, New BEL Road, Jayanagar 4th

Block and Koramangala 80 feet Road in Koramangala in SBD are

among the prominent illustrations of evolved high-streets of the city.

Among the recently developing high-street locations are Kamanahalli Main Road, Sahakar Nagar and Marenahalli Road

towards the PBD locations.

Regardless of increasing mall space; Bangalore’s high-street locations are preferred by Apparel & Footwear, Electronic goods

and Food & Beverage (F&B) retailers.

High-street expansions during 2012-13 included Delsey (Indiranagar), Baileys (Koramangala), Krispy Crème (Church

Street), Choki Dhani (Intermediate Ring Road) and Me n Mom’s

(Banashankari). Further, some of the entrant retailers namely

Starbucks coffee is currently evaluating high-street locations for

setting-up their stores in the city.



1 G Corp 1 MG Road

Operational

6

72

3

4

5

Suraj Cambridge Mall

Embassy Galaxy MallEVA Mall

Garuda Mall

The Collection

Sigma Mall

Under Construction Planned

Operational Under Construction Planned

8

9

10

11

12

Salarpuria Oasis Mall

The Forum

Swagath Garuda

Gopalan Innovation Mall

Mantri Junction

13

14

Mantri Square

Orion Mall

15 Gopalan Signature Mall

16 Leela Galleria

17 Vega Mall Sobha Grand Mall

World GT Mall

21

18

19

Karle MallCity View

Orion Mall - 2 Nitesh Mall23

22

Operational Under Construction Planned

35

36

24

25

29

26

27

28

37

Grand Mall & TowersSoul Space Arena Gopalan Destination Mall

Virtuous Xander MallPhoenix Market City Prestige Technostar

MBD ZephyrInorbit Mall

Park Square

Forum Shantiniketan Mall

Salarpuria World Market

The Forum Value Mall

Cosmos Mall

46

47

48

38

30

39

40

Soul Space Spirit

Mantri Mall, Agara

Perk In Mall

Neo Mall

44

45

49

Royal Meenakshi Mall31

41

Gardens Galleria

32

42

Gopalan Arcade Mall

Vaishnavi Sapphire

43

MSR Regallia Elements

50

33 Gopalan Legacy Mall

34 Esteem Mall

RMZ Galleria

Mantri Mall, Kanakpura

Puravankara Mall

51

52

Lotus Mall53

Prestige Falcon City

54

55 Monarch Celestial

Century Istana High Street56

Karle Town Center

20

Raheja INXS Mall

Malls in CBD

Malls in SBD

Malls in PBD

Legend: List of existing, under-construction and planned malls in Bangalore

36


Figure: Map of existing, under-construction and planned malls in Bangalore


Yelahanka

Outer Ring Road

Out

er R

ing

Roa

d

Oute

r R

ing R

oad

HSR Layout

HMT Township

NH 7: To Hyderabad

Propo

sed

Perip

hera

l Rin

g Roa

d


NH 4: To Mumbai

Hebbal

BIEC

HesaraghattaCross

NIC

E Ring R

oad

NICE Ring Road

Nagawara

Banaswadi

MG Road

Byppanahalli

J.P. Nagar


Rajaji Nagar

RMVExtension

Vijayanagar

Mysore Road

Kengeri

Puttenahalli

Thalagattapura

Kanaka

pura

Road


SH 17:To Mysore

Silk Board

Gottigere

Begur

Koramangala

NH 7: To Salem

Bellandur

Brookefield

Pro

pose

d P

erip

hera

lR

ing R

oad

Magadi Road

PalaceGrounds

Marathahalli

Varthur

Bommasandra

Tumkur Road

Arkere

Bannerg

hatta R

oad

Hosur R

oad

NIC

E R

ing

Ro

ad

ITI

IIMB

Rajanukunte


Hennur


Haralur

Hosa Road

Dommasandra

Kothnur

Jaraganahalli

Jalahalli

Budigere

NH 4: To Chennai

Mysore Road

Old Madras Road

Indiranagar

Old Airport Road

Bel

lary

Roa

d


Sarjapur Road

Varthur Road


Doddaballapur M

ain Road

Hope Farm Circle

Jayanagar

Electronics City

Majestic

M

BangaloreUniversity

M

M

M

M

M

MM

M

M

M

M

M

M

M

M

M

39

52

51

4050

3149

1711

53

32

33

47

48

30

16

12 10

9

8

214

3 2

23624

3529

28

2646

4544155 1

38

37

2536

18

56

55

43

42

54

34

41

22

14

13

19

2027

7

Major Roads

Outer Ring Road

NICE Ring Road




Proposed Monorail



Bellary Elevated Express way Major Landmarks


Key Metro StationsM

Krishnarajapuram


Micro-LocationRentals on UCA

CBD

H1 2012 H2 2013

Magrath Road

Cunningham Road

Vittal Mallya Road

300

165

330

15Table: Malls and High-street Rental Value (INR/sqft/month)

350

185

395

Mall RentalsRentals on SBA

H1 2012 H2 2013% Change

195

107

215

228

120

260

17%

12%

20%

SBD

Koramangala

Malleshwaram

400

210

450

225

260

137

292

146

13%

7%

PBD

Whitefield

Bannerghatta Road

Mysore Road

Rajarajeshwari Nagar

150

180

100

110

170

200

105

115

98

117

65

72

110

130

68

75

13%

11%

5%

5%

Brigade Road

Commercial Street

Church Street

Vittal Mallaya Road

M. G. Road

450

300

160

200

300

480

320

175

225

330

360

240

128

160

240

384

256

140

180

264

7%

7%

9%

13%

10%

Koramangala 80 Feet Road

Indiranagar 100 Feet Road

Jayanagar 11th Main Road

Malleshwaram - Sampige Road

New BEL Road

Kammanahalli Main Road

130

210

245

120

130

125

130

225

255

125

140

140

104

168

196

96

104

100

104

180

204

100

112

112

0%

7%

4%

4%

8%

12%

ORR (Marathahalli - Sarjapur Road)

Bannerghatta Road

Yelahanka Main Road

100

95

90

100

100

90

80

76

72

80

80

72

0%

5%

0%

15Shopping Mall rentals indicated on UCA are for a 1,000 sqft vanilla store on Ground Floor with an efficiency of 65%. High-street rentals indicated on UCA are for 1,000 sqft store on Ground Floor with an

efficiency of 85%.

Since last year, shopping mall rentals have appreciated between 5% and 20% while high-street rentals have

appreciated between 5% and 12%.

Mall rentals have appreciated in the range of 5 - 20% in last one year. UB City on Vittal Mallya Road witnessed highest

appreciation in rentals due to lack of luxury space in the city. The

Forum in Koramangala and Garuda Mall on Magrath Road

witnessed significant appreciation in the last one year.

High-street locations over the last one year witnessed lesser appreciation compared to shopping malls. Rentals across the

locations grew in the range of 5-12%. Vittal Mallya Road, a key

high street location for luxury brands, witnessed significant

increase in rental value during H1 2012 due to limited supply of

retail space in the luxury category. Other high-street locations that

witnessed growth in rental values include Kammanahalli Main

Road and M.G. Road.

CBD

SBD

PBD

High-Street Locations

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end of 2013. Total operational mall space shall account to 8.45

million sqft by the year end.

SBD and PBD locations are expected to witness significant

entry of new malls in the next three years. Close to 4.5 million

sqft of mall space is under-construction across these

locations.

Among the PBD locations ORR-Sarjapur has high potential for

development of malls in near future while Whitefield due to

high penetration of shopping malls remains less attractive.

The city offers an opportunity for development of specialty

malls that concentrate on a particular merchandise like

furniture, automobile and its accessories, entertainment and

jewelry to name a few. No such malls have been planned

presently, but with the Government opening FDI in multi-brand

retail, the city is likely to witness entry of retail giants that will

provide necessary impetus for development of themed malls.

Retail demand in high-street locations of Brigade Road and

Commercial Street is expected to strengthen with completion

of Bangalore Metro Rail. Indiranagar 100 feet Road and

Koramangala 80 feet Road will continue to be a preferred

location with F&B retailers while Jayanagar 4th Block and

Malleshwaram will be preferred by retailers focusing on

womens’ apparel and jewelry.

Mall Rentals in SBD locations are likely to increase in short

term while rentals in PBD locations are expected to remain at

current levels in coming one year.

High-street rentals are anticipated to contain past growth trend

in coming one year.

With Karnataka Government easing FDI norms for both single

brand and multi-brand retail, the retail sector in Bangalore is

poised to grow in the coming years.


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557 roomsadded in Bangalore in 2012

9,585 rooms at the end of 2012

324 rooms entered in H1 2013

1,157 rooms likely to enter byQ1 2014

5,190 roomsunder-construction

Hotel Name Micro-market No. of Rooms

40

The city’s hospitality market is dominated by upscale hotels; 42% of the existing room inventory is under 5

Star Category. In medium term, the city will continue to see addition of 5 Star category hotels over other

formats.

Bangalore’s hospitality sector is driven by business travelers that contributes close to 75 - 80% of the city’s hospitality demand. Leisure travelers

and Meetings, Incentives, Conferencing & Exhibitions (MICE) travelers contribute to a mere 20% - 25% of the city’s hospitality demand.

29%

Serviced Apartment

4 Star

3 Star

5 Star

42%

6%

23%

Figure: Distribution of ExistingInventory

Figure: Distribution of Under-construction Inventory

Figure: Distribution of Planned Inventory

17%

Serviced Apartment

4 Star

3 Star

5 Star

69%

7%

6%

Serviced Apartment

4 Star

3 Star

5 Star

82%

10%

18%

0%

Existing Inventory:

Bangalore’s hospitality market is dominated by upscale 5

Star category hotels. Nearly 42% of the total existing room

inventory falls under this category. Mid-segment hotels

have started penetrating the market only post 2008 and

currently accounts for a mere 23% of the existing inventory.

Branded serviced apartments contribute to 6% of the

existing inventory.

In the year 2012, 557 rooms entered the city’s market.

Sheraton (230 rooms) at Rajajjnagar and Vivanta by Taj

(327 rooms) at Yeshwantpur commenced operations in

2012. However, this is only 30% of the rooms that were

slated to enter the market in 2012. Ritz Carlton on

Residency Road, JW Marriott in UB City deferred their

construction schedules. H1 2013 witnessed completion of

Hotel Marriott (324 rooms) in Whitefield.

Upcoming and Planned inventory:

Going forward, the hospitality market will continue to be

dominated by 5 Star category hotels as of the 5,524 rooms,

nearly 4,000 rooms are under this category.

By Q1 2014 Bangalore is likely to witness entry of 1,157

rooms, of which 65% are in 5 Star Category.

Table: List of Hotels likely to enter Bangalore market in 2013-14

CategoryLocation

Fairfield by Marriott

Hilton Residences

Taj Gateway

Marriott

Double Tree Suites by Hilton

Rajaji Nagar

Inner Ring Road

Bannerghatta Road

Devanahalli

ORR - Sarjapur

SBD

SBD

SBD

PBD

PBD

140

251

210

307

172

5 Star

4 Star

Business

4 Star Serviced Apartments

5 Star Serviced Apartments

HOSPITALITY MARKET OVERVIEW


PBD locations account for nearly 48% of the total room inventory. Currently of the total 5,190 rooms under-

construction, PBD is expected to see an entry of 3,471 rooms.

Based on the micro-markets, CBD accounts for 3,582 operational hotel rooms. The location, due to its proximity to the

city center and high land prices is preferred for development of 5

Star category hotels. Currently, nearly 70% of the existing

inventory is under 4 and 5 Star category hotels. In medium term,

this micro-market will continue to see entry of 5 Star category

hotels; 1,098 rooms under this category are expected to enter

the market by 2015 - 16. Ritz Carlton (267 rooms), JW Marriott

(318 rooms) commenced operations while Hilton (285 rooms) is

presently under-construction in this region.

SBD locations account for a mere 1,923 rooms. This location has witnessed development of a hotel as a part of mixed-use

development having an office, residential and / or a shopping

mall within a development. Key illustrations being Sheraton in

Brigade World Trade Center, upcoming serviced apartments -

Hilton Residences by Hilton Group in Embassy Golf Links and

upcoming 5 Star hotel in Mantri Group’s proposed integrated

township at Agara.

PBD tops the chart with 5,144 operational hotel rooms. Proximity to IT micro-markets of ORR, Whitefield and Electronics City has

led to development of branded 3 Star category / business hotels

and branded serviced apartments as compared to CBD or SBD

locations. Some of the prominent national and international

operators with presence in this area include Novotel and IBIS by

Accor, Marriott by Marriott Group, Lemon Tree Hotel by Lemon

Tree Group of Hotels, Premier Inn by Premier Inn Group and Aloft

by Starwood Group of Hotels. With 3,471 rooms in various stages

of construction, PBD is likely to have the highest inventory in the

city in the near future.

CategoryCBD SBD PBD

4 Star

5 Star

Total

Existing U/C Planned Existing U/C Planned Existing U/C Planned

807

1,192

1,289

3,582

30

-

1,068

1,098

-

-

-

-

179

186

1,404

1,923

140

-

230

621

-

-

-

-

1,734

1,455

1,727

5,144

194

988

2,117

3,471

125

-

1,412

1,712

Table: Bangalore's Existing, Under-construction and Planned Hotel Room Inventory

3 Star

Serviced Apartment 294 - 154 251 - 228 172 175

Total

2,930

4,100

9,246

1,274

17,551

-

42

Among the PBD locations, ORR-Sarjapur Stretch and Whitefield are preferred locations by hotel operators

mainly due to its proximity to IT clusters while Tumkur Road and Bangalore North have gained prominence

owing to its proximity to Bangalore International Airport.

LocationNo. of Hotel Rooms

Whitefield

ORR-Sarjapur

Tumkur Road

Existing U/C Planned

5,144

2,129

1,058

662

3,471

1,160

984

-

502

1,712

700

-

Table: Bangalore's Hotel Room Inventory in PBD locations

PBD

Bannerghatta Road - 215 -

Bangalore North

Hosur Road

31

1,264

1,112

-

510

-

ORR-Sarjapur Road accounts for nearly 30% of the total operational IT/ITeS space in the city. This location has witnessed

increased penetration by hotel operators in the last two years

due to high commercial activity across this corridor. Some of the

prominent hotels in this location are Novotel and IBIS by Accor

and Park Plaza by Carlson Rezidor Group. Apart from the

operational hotels, Aloft by Starwood Group, Courtyard by

Marriott and Double Tree Suites by Hilton are among the

upcoming hotels in this micro-market. However, room inventory

in this micro-market is not sufficient to cater to the demand of this

micro-market.

Whitefield currently accounts for more than 40% of the operational rooms in PBD locations. This micro-location also has

a significant under-construction and planned inventory, which is

likely to enter in medium term.

Hosur Road has sufficient existing inventory to cater to the demand. With office development in Electronics City almost

nearing saturation, the potential for developing hotels in this

micro-location is low.

Tumkur Road is emerging as a preferred location for hotels due to its proximity to Bangalore International Airport and CBD

locations. Further, proximity to business hubs like Brigade

World Trade Center, Manyata Embassy Business Park,

Bangalore International Exhibition Center (BIEC) and industrial

areas of Peenya and Nelamangalais are make this an attractive

location. Vivanta by Taj and Golden Beach Palm Resorts are

among the major operational hotels in this location. However,

almost all hotels that are operational in this micro-location are in

the upscale categories. The micro-market has an opportunity

for development of branded 3 Star category hotels.

With Bangalore International Airport commencing operation in 2008, several hotel projects have been announced in the

Bangalore North micro-market. Currently 1,112 rooms are

under construction and are likely to enter the market in the next

24 months. However, this location has high potential for hotel

development in the long-term due to the proposed economic

hubs. Leela Ventures is coming up with a 300 room 5 Star hotel

in Bhartiya City on Thanisandra Road.



1 Royal Orchid Central

2

3

4

5

Lemon Tree Premier

The Hilton

Hyatt

Taj Vivanta

6

Royal Orchid7

8

9

10

The Leela Palace

Matthan

Hilton Residences

The Oberoi

11 Ginger

12

13

14

15

Ritz Carlton

JW Marriott

ITC Gardenia

JNR IBIS Citi Centre

16

The Taj West End17

18

19

20

Viceroys

Shangri-La

Le Meridien

The Atria

21 ITC Windsor

22

24

25

The Lalit Ashok

Sarovar Portico

Fairfield by Marriott

Sheraton

26 Movenpick

27

28

Taj Vivanta

Ascott

The Wyndham Grand

30 Marriott

31

32

33

34

Hotel Trident Hilton

Howard Johnson

Hyatt Place

Swissotel

35

MBD Zephyr

37

38

39

Keys Hotel

Ginger

Sheraton

Zuri

40 Aloft

41

42

43

44

Marriott

Taj Vivanta

Royal Orchid

Alila

45

Aloft46

47

48

49

Novotel and IBIS

Citrus

Double Tree Suites by Hilton

Park Plaza

Planned Hotel (Mantri Group)

51

52

53

54

Davanam Sarovar Portico

Courtyard by Marriott

The Gateway by Taj

Keys Hotel

55

Lemon Tree Hotel56

Crowne Plaza

36

50

23

29

Operational Hotels Under-Construction Hotels Planned Hotels

List of Key Hotels in Bangalore

Legend: List of existing, under-construction and planned hotels in Bangalore

44

Operational Hotels

Under-Construction Hotels

Planned Hotels

Figure: Map of existing, under-construction and planned hotels in Bangalore


Yelahanka

Outer Ring Road

Out

er R

ing

Roa

d

Outer Ring R

oad

HSR Layout

HMT Township

NH 7: To Hyderabad

Propo

sed

Perip

hera

l Rin

g Roa

d


NH 4: To Mumbai

Hebbal

BIEC

HesaraghattaCross

NIC

E Ring R

oad

NICE Ring Road

Nagawara

Banaswadi

MG Road

Krishnarajapuram

Byppanahalli

J.P. Nagar


Rajaji Nagar

RMVExtension

Vijayanagar

Mysore Road

Kengeri

Puttenahalli

Thalagattapura

Kanaka

pura

Road


SH 17:To Mysore

Silk Board

Gottigere

Begur

Koramangala

NH 7: To Salem

Bellandur

Brookefield

Pro

pose

d P

erip

hera

lR

ing R

oad

Magadi Road

PalaceGrounds

Marathahalli

Varthur

Bommasandra

Tumkur Road

Arkere

Bannerg

hatta R

oad

Hosur R

oad

NIC

E R

ing

Ro

ad

IISC

ITI

IIMB

Rajanukunte


Hennur


Seegehalli

Haralur

Hosa Road

Dommasandra

Kothnur

Jaraganahalli

Jalahalli

Budigere

NH 4: To Chennai

Mysore Road

Old Madras Road

Indiranagar

C.V.Raman Nagar

Old Airport Road

Bel

lary

Roa

d


Sarjapur Road

Varthur Road


Doddaballapur M

ain Road

Hope Farm Circle

Jayanagar

Electronics City

Majestic

M

BangaloreUniversity

M

M

M

M

M

MM

M

M

M

M

M

M

M

M

M

56

55

54

53

4952

51

50

44

46

48

45

47

34

3335

39

40

4241

38

37

36

438

9

7

10

12

11

14

13

15

2416

456

17

23

22

18

21

25

27

30

31

29

28

32

26

20

19

1

2 3


Major Roads

Outer Ring Road

NICE Ring Road




Proposed Monorail



Bellary Elevated Express way

Major Landmarks

Key Residential Areas Key Metro StationsM


CategoryCBD SBD PBD

4 Star

5 Star

Rack Rate Discount Offered

5,000

7,900

4,000

20%

11%

16%

5,650

8,000

5,350

20%

14%

14%

4,000

7,700

2,000

24%

20%

30%Serviced Apartment

Rack Rate Discount Offered Rack Rate

Table: Hotel Rack Rates in Bangalore

3 Star 4,200 28% 3,700 36% 3,600 25%

Management Contract is the most preferred model by International and National Hotel Operators.

Currently, management contract is the most preferred model by the international and national hotel operators. In this model, the

landlord / developer undertakes the land acquisition,

construction and fit-out of the hotel and the hotel operator

manages the operation of the hotel, in return paying a

management fee on top-line and bottom-line revenues.

Hotels are bringing in external brands of restaurants, spas and lounges on leases or management contracts in order to increase

revenue generation.

Bangalore is also witnessing the development of hotels as part of mixed use developments with residential, commercial, retail and

hospitality in the same project. Key examples include the

Sheraton Hotel in Brigade Gateway (Rajajinagar), JW Marriott in

UB City (Vittal Mallya Road), Four Seasons Hotel in City View

(Bellary Road) and Fairfield by Marriott in Sumangala Golden

Heights (Rajkumar Road).

International Hotel operators today are also exploring opportunities to acquire existing hotels and re-brand these under

their parent companies. Hyatt Hotels Corporation signed

management agreement with Indian Hotels and Health Resorts

(IHHR) and rebranded five Ista Hotels in India including Ista in

CBD location of Bangalore.

Figure: Average Occupancy Levels and Room Rates (INR/night) in Bangalore

0

2,000

4,000

6,000

8,000

10,000

12,000

Room Rate

16

5 Star

Ro

om

Ra

te (

INR

/ R

oo

m /

Nig

ht)

58%

Average Occupancy Levels

50%

16

Occ

up

an

cy L

eve

ls

Average occupancy rate in branded hotels across Bangalore ranges between 56% and 59%.

4 Star 3 Star

7,867 4,883 3,833

55%

60%

65%

70%

75%

Occupancy rates for 5 Star category hotels in the city range between 55% and 60%. Further, occupancy rates in 5 Star

category hotels are higher in CBD and SBD locations as

compared to PBD locations.

Lower occupancy rates in 3 Star category hotels is due to two main reasons; firstly not all the 3 Star hotels are managed by

branded operators and secondly most of 5 Star & 4 Star hotels

have long-term corporate tie-ups that impact the demand

supply dynamics.

Discount Offered

59%

56%

46

OU

TL

OO

K -

HO

SP

ITA

LIT

Y

Majority of the under-construction and planned projects are

under the 4 Star and above categories. However, there is still a

demand for 3 Star and business category hotels in PBD

locations in and around economic hubs.

Occupancy levels and average room rates are likely to fall with

an addition of 1,157 rooms by Q1 2014. However, in the long

run economic growth is likely to increase demand for hotel

rooms.

Active micro-markets in the short to medium terms are CBD

and ORR, whereas Bangalore North has potential for hotels in

the long term.

Management contract will be the preferred development model

for hotels in the short to medium term.

Serviced apartments and company hotels or guest houses

have immense potential to grow.


Opportunities across Real Estate Sector in Bangalore in the short term

OFFICE

RESIDENTIAL

RETAIL

HOSPITALITY

48

ORR being one of the most preferred micro-market will remain a promising

location for development of office space in short to medium term. Further,

with availability of land for redevelopment in CBD and SBD locations, there is

a scope for development of office spaces in these locations.

Bangalore has witnessed significant launches in the ticket size of INR 1 crore

and above. Demand for mid segment (ticket size of INR 25L - INR 50L)

continues to remain buoyant across the city. Some of the locations that have

an opportunity for development of this product type include Kanakapura

Road, Sarjapur Road (after Railway Crossing), Hosur Road and

Bannerghatta Road.

With most of the malls being anchored around a department store and / or a

hyper-market / super-market chain, the city has opportunity for development

of a specialty mall focusing exclusively on sale of home & furnishing products,

cars & auto-accessories, jewelry, electronics & white goods.

The city’s hospitality sector is currently dominated by the 4 and 5 Star

category hotels. There is scope for development of branded 3 Star hotels. In

coming years, integrated township projects would be preferred development

spheres instead of single-use projects.

OP

PO

RT

UN

ITIE

S


Micro-Markets Areas covered within the micro-markets

OFFICE

SBD

ORR

CBD

PBD

Bangalore North

M.G. Road, Kasturba Road, Lavelle Road, V.M. Road, Ulsoor Road, Residency Road, Infantry Road.

Indiranagar, Koramangala, Inner Ring Road, Old Airport Road, Bannerghatta Road.

Stretch from Hebbal to Silk Board junction.

Whitefield, Electronics City, Mysore Road, Bellary Road, Sarjapur Road.

Bellary Road (Hebbal to BIAL).

RESIDENTIAL

Off-Central

ORR

Central

Whitefield

Old Madras Road

MG Road, Kasturba Road, Brunton Road, Lavelle Road, Richmond Road, Residency Road, Frazer

Road, Cox Town and Hanes Road.

Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleswaram, RMV Extension, Sanjay Nagar, RT

Nagar.

HSR Layout, ORR (Marathalli - Silk Board Junction), Sarjapur Road, Haralur Main Road,

Kasavanahalli Main Road.

Whitefield, Brookefield, Mahadevpura, ORR (K.R.Puram to Marathahalli), Varthur Road

Bangalore North

Hosur Road

Bannerghatta

Road

Mysore Road

Kanakapura Road

Tumkur Road

K.R. Puram, Ramamurthy Nagar, Battarahalli, Sonnenahalli, Hirandahalli, Budigere, Devanahalli-

Hoskote Road

Banaswadi, HRBR Layout, Hennur Road, Thanisandra Main Road, Bellary Road, Yelahanka, Kogilu,

Chokkanahalli, Bagalur Road, Doddaballapur Road, New Town Yelahanka, Jakkur

Hosur Main Road, Electronics City, Neeladri, Chandapura, Anekal

Bannerghatta Road, Begur, BTM Extention

Mysore Road, Kengeri Satellite Town, Vijayanagar, Magadi Road, RR Nagar

Kanakapura Main Road, Banashankari Extension and Uttarahalli

Tumkur Road, Rajajinagar, Hesarghatta, Jalhalli, HMT Township, Yeshwantpur

RETAIL & HOSPITALITY

SBD

CBD

PBD

M.G. Road, Brigade Road, Magrath Road, Richmond Road, Lavelle Road, Cunningham Road,

Langford Town, Brunton Road and Residency Road.

Indiranagar, CMH Road, Old Madras Road (till K.R.Puram Bridge), Banaswadi, Bellary Road (till

ORR), Koramangala, few locations on Bannerghatta Road and Hosur Road (till Silk Board Junction),

Kanakapura Road (till ORR), Jayanagar, JP Nagar, Vijayanagar, Sadashiv Nagar, New BEL Road,

Sanjay Nagar, Malleswaram, Rajajinagar and Yeshwanthpur.

Peripheral locations of Whitefield, ORR - Sarjapur, Electronics City and Hosur Road, Bannerghatta

Road, Kanakapura Road, Mysore Road, Old Madras Road, Tumkur Road and Bangalore North.

LO

CA

TIO

N M

AS

TE

R

50

Strategic Advisory

Vestian Global Workplace Services’ Strategic Advisory Group is the Research arm of Vestian. They align business

strategies of corporate clients with their real estate portfolio strategy. Property market intelligence, economic, urban &

space planning principles and analytical methods all come together to provide strategic insights to real estate

occupiers. This approach guarantees recommendations that are thorough and meets not only the needs of today, but

of the future as well. We primarily cater to Developers, Builders, Investors and Occupiers.

Our studies span a spectrum of sectors:Commercial, Residential, Industrial, Institutional, Hospitality.

Retail Business Solutions

Vestian Retail Business Solutions is the full-service retail arm of Vestian. We work with each client to understand their

objectives, keep them informed of associated risks, establish achievable goals, develop and implement effective

solutions. Vestian Retail Business Solutions provides end-to-end services such as Retailer Expansion Strategy, Real

Estate Services, Occupier Representation, Retail Concept Development & Consulting and Retail Project

Management.

Project Services

The Vestian Project Services team is a one-stop solution for clients opting for Project Management solutions. We are

focused on delivering functional facilities that meet the clients’ space requirements. We provides supervisory &

coordination services to the client. We deliver consistent, reliable and viable solutions for local and international

markets. Our delivery process involves Preparation of Design documents, Co-ordination with Architects &

Consultants on design, Finalization of Vendors, Supervision of the project, Project Closure

Facilities Management Services

Vestian’s Facilities Management Services team helps clients focus on their core business activities while supporting

the entire facility. We act on behalf of the client to preserve the value of the property, while generating income. We

effectively oversee property performance and maintenance following international best practices, using high end

technology and precision processes. We manage &supervise the administration of residential, commercial, retail

and/or industrial real estate.

Transaction Advisory

Vestian’s competent Transaction team provides an array of services focused on optimizing workplace solutions that

enhance the client’s workplace services portfolio. We handle varied workplace related transactions such as

purchase, lease, disposal, lease management, lease renegotiations and restructuring. We provide solutions that are

aligned to the business objectives of our clients.

Vestian Global Workplace Services, an ISO 9001:2008 certified workplace services firm, specializes in providing

occupier-focused solutions for commercial, residential, industrial, retail and hospitality sectors. Our service portfolio

includes Strategic Advisory, Retail Business Solutions, Transaction Advisory, Integrated Service Delivery, Project

Services and Facilities Management Services.

We measure key deliverables of our business and align it to the clients’ strategic business goals. Our commitment to

achieve excellence and consistency in our service delivery models has helped us attain high standards of quality and

raised the bar for the industry.

Our experienced team has the required expertise and exposure in different sectors. Combining global best practices and

local knowledge, the team provides an integrated solution for all real estate requirements. Moreover, the belief in our

corporate philosophy - Delivering Measurable Results - helps us in providing solutions in keeping with global delivery

standard.

ABOUT VESTIAN


Michael serves as Chairman and is responsible for strategic oversight. He is a recognized

leader in the field of workplace services. He has established and led the growth of a large

occupier focused services corporation.

In 2006, he received the Ernst & Young "Entrepreneur of the Year" Award. He is also an

active member of the YPO (Young Presidents' Organization) and WPO (World

Presidents' Organization).

Michael SilverChairman, Vestian

Shrinivas Rao, MRICSCEO - Asia Pacific, Vestian

Shrinivas serves as Chief Executive Officer for Asia Pacific arm of Vestian. With over 20

years of experience in working with global clients throughout India, he is well-versed in

delivering solutions that work in India's very challenging workplace services markets.

Amongst the pioneers of professional workplace consulting services in India, he

successfully established and led operations of three multinational corporations in India.

He is widely recognized as a "change leader", known for his keen insights into workplace

services trends and innovative structuring services.

MA

NA

GE

ME

NT

52

As a part of Strategic Advisory Group, Dhara contributes to property market reports,

research papers as well as client assignments. She has 6 years of experience and has

worked on investments and consultancy assignments across commercial, residential,

hospitality, retail and industrial sector. She holds an engineering degree with M. Tech in

planning from CEPT University, Ahmedabad.

Dhara Dalal

Sr. Manager, Strategic Advisory Group

dhara vestianglobal.com +91 80 40620100

Shwetha has over 8 years of experience in real estate research and consultancy. As an

account manager for key residential focus clients at Vestian, she is responsible for

developing and implementing customized research, corporate strategy and project

conceptualization. A qualified urban planner from the School of Planning & Architecture

(SPA), New Delhi, she has worked in both Indian and US markets.

Shwetha H Pai

Associate Director, Strategic Advisory Group

shwetha vestianglobal.com +91 80 40620100

Gorakh serves as Vice President and heads the Strategic Advisory Group. He guides the

team and is responsible for research output as well as client assignments. With over 10

years of work experience in investments, consulting and advisory domain, he has

executed and delivered assignments across asset classes. Gorakh pursued his master’s

degree from Indian Institute of Technology, Delhi and holds a bachelor’s degree in

Architecture.

Gorakh Jhunjhunwala, MRICS

VP, Strategic Advisory Group

gorakh vestianglobal.com, +91 80 40620100

@

@

@

Acknowledgment

The Vestian Strategic Advisory team would like to take this opportunity to extend our

gratitude towards all those who have helped us in our endeavor to produce this report.

We would like to especially thank the developers in Bangalore who have extended their

valuable support and market information to help us ensure authenticity of this report. A

special mention for our Corporate Communications Team, as well as Shailendra H C,

Sneha Sharma, Chandra Mohan Reddy and Manoj Joseph for their continued support &

cooperation. Our sincere thanks to Ramalekshman - Asst.Manager, Corporate

Communications for designing the report.

AUTHORS


USA

India

China

UAE

Srilanka

54

OFFICES

Bangalore (Corporate Office)First Floor, West Wing,DuParc Trinty,#17, MG Road,Bangalore 560 001T: +91 80 4062 0100

INDIA Chicago (Head Office)300 N. LaSalle StreetSuite 1850Chicago, IL 60654Telephone: +1 312 920 0290Telephone: +86 21 3255 6366

USA

CHINA (Regional Office)Unit 1207, No.546Changning Road,Changning District,Shanghai 200 042Telephone: +86 21 3255 6366

CHINA

ChennaiSuite No # 403MLS Business CenterKuppu Arcade4, Venkatanarayana RoadT. Nagar, Chennai- 600017T: +91 44 39159351/ 66659351

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Hyderabad2nd Floor, N.N.R Arcade,Plot 13, Road No. 10, Banjara HillsHyderabad - 500034Telephone: +91 40 33782100

DISCLAIMER: This report contains information available to the public and has been relied upon by Vestian Global Workplace Services on the basis that it is accurate. Vestian

accepts no responsibility if this should prove not to be the case. No warranty or representation, expressed or implied, is made to the accuracy or completeness of the information

contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions and withdrawal without notice.

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