JLL Pulse - July2013 - India

Monthly Real Estate Monitor – July 2013

Will INR Depreciation Lead to Homecoming of NRI Real Estate Investors? Dubai is touted as the world-class property investment destination in the Middle East. In 2012, real estate prices witnessed a 10% growth y-o-y, as per the Dubai Land Development (DLD) authority’s data. Also, the real estate transactions increased by 8% to AED 154 million. Interestingly, this recovery is backed by huge investments by expatriates, particularly from India as nonresident Indians (NRIs) are amongst the top five investors in the Middle East. However, with the natural affinity towards home-biasness for India, and against the recent depreciation of the Indian rupee (INR) against the US dollar (USD), could the real estate investment decisions of the NRI community be changed in favour of India?

Indian real estate prices have increased dramatically over the last few years. Immediately following the global financial crisis (GFC), Indian property prices witnessed a significant rise averaging 40–42% across all major markets, as per the database of Real Estate Intelligence Services (REIS), Jones Lang LaSalle (refer to Figure 1). Even in cities like Mumbai, where capital values were already high, returns stood at 66% during the same period. Contrary to this, DLD’s data for Dubai suggests property prices witnessed a 65% slump in the four-year period before 2012, thereby enabling us to suspiciously ask whether a 10% rally in 2012 is all that startling.

Figure 1: Returns from Indian Residential Market

0%

10%

20%

30%

40%

50%

60%

70%

80%

Returns from Indian residential market in last four years

Capital Value % change during 2Q09-1Q13

Source: Real Estate Intelligence Services, Jones Lang LaSalle, India

More recently, INR has witnessed a significant 12% depreciation against USD since the start of May 2013 until the end of June 2013, thereby forcing its value down against all other currencies that are pegged to USD, including the UAE dirham (AED). As a consequence, INR has also depreciated against the AED by 12% during the same period.

A simple back-of-envelope calculation suggests that for instance, if a Dubai-based NRI invests AED 10 million in the Indian real estate now (INR/AED at 16.4), and assuming only a conservative 15% returns from the Indian real estate in the near term for key markets, he could expect repatriated returns of over 27% (15% of returns from real estate market plus 12% of currency appreciation), assuming that the INR returns to its pre-May mean of 14.8/AED (refer to diagram).

Merely the incremental return of 12%, owing to exchange rate fluctuation, is comparable to the 10–12% of total returns expected by DLD in the near term from the investment in Dubai real estate. Similar incremental returns can be expected from investments made by NRIs from other parts of the Middle East where the local currency is mostly pegged to USD (refer to Table-1).

Table-1: Incremental gains from INR exchange rate UAE (Dirhams) 12.5% Saudi Arabia (Rial) 12.4% Oman (Rial) 11.8% Kuwait* (Dinnar) 12.0%

*Partially pegged to the USD

Pulse •Research Dynamics•2012

It could be argued that expat-Indians may be favouring Dubai over the Indian real estate on the basis of socio-economic and other factors. According to media sources, Indian investors were buying properties in Dubai as it offers relative political stability, world class infrastructure, tax benefits, attractive prices and geographical proximity.

However, a recent survey conducted by Sumansa Exhibitions, the organiser of the Indian Property Show in UAE, portrays a different picture. The survey reveals that NRIs place a higher intrinsic value to property owned in India over that owned in Dubai or elsewhere. Apart from strict visa rules in the Middle East region along with certain regulatory obstacles in buying a property in the Emirates, critical triggers that could help sustain their interest in Indian property market include higher economic growth in India, improving infrastructure, renewed political focus on timelines for new infrastructure initiatives, rising demand for commercial space in the market (leading to job creation), social infrastructure and price trends. Putting these things into perspective, the recent fall of INR could potentially act as a trigger amongst the NRI community in the Middle East to switch their focus towards the properties back in India. Figure 1: Financial Indicators

Grade A Capital ValueOffice Retail Residential

Delhi NCR

Mumbai

Bangalore

Chennai

Pune

Hyderabad

Kolkata

Rental Value

Deal of the Month Jones Lang LaSalle’s Capital

Markets team has sold a 100% equity stake in the

holding firm of BlueRidge Special Economic Zone

(SEZ) Phase I in Pune for INR 4,500 million to IDFC

What’s New!! The Union Cabinet of India

cleared the Real Estate (Regulatory & Development)

Bill during the first week of June 2013. The bill aims to instill

transparency and maturity into the residential sector that has

been so far unregulated.

Green Wall Surat is moving towards

becoming the first city in India to have a green building council (GBC) that would

ensure that the new buildings coming up will follow a green

building code.

http://timesofindia.indiatimes.com/topic/Green-Building-Council

http://timesofindia.indiatimes.com/topic/Green-Building-Council


Bangalore Bangalore office market saw improvement in transaction activity during June compared with the previous month. The combination of stable demand and restricted supply kept the city’s overall vacancy

rate low during the month. Interestingly, the IT/ITES sector accounted for the majority of leasing, with major companies taking up space in the quarter including Disney, Amazon, Honeywell, Synergy and TP Vision. The city witnessed the completion of Global Village Technology Park Phase III Tower 3, Kalyani Platina Oak, Kalyani Platina Crystal and Nagarjuna Garnet. Rents continued to remain stable across the city. However, capital values marginally appreciated because of improved demand and investor sentiments.

Bangalore’s retail market saw continued steady consumer demand in June. As a result, the vacancy in malls reduced marginally. In addition, the high streets continued to see modest absorption in the

month. Some of the major transactions in the city included leasing by Starke’s, FabIndia, McDonald’s, KFC and Pepe Jeans. Rents continued to remain stable over the month. Capital values also remain unchanged because of poor investor sentiments towards buying retail property.

Residential market saw modest absorption during June in Bangalore. The city also witnessed an increased number of launches over the month, with the notable ones including Prestige IVY Terraces by

Prestige Group, Sobha Santorini by Sobha Developers and DNR Atmosphere by DNR Corp. Rents remained stable over the month. However, capital values appreciated marginally across various submarkets because of increased sales volumes and marginal upsurge in price at most projects that are nearing completion.

Office Rents Capital Value

Key Precincts INR per sq ft per

month INR per sq ft CBD 48–55 5,500–6,500 Old Airport Road 60–65 6,000–7,000 Outer Ring Road (East) 46–52 4,700–6,000 Old Madras Road 30–34 3,000–3,500 Electronic City 26–28 2,500–3,000

Retail Rents Capital Value


month INR per sq ft Koramangala 80–150 9,000–16,000 Indiranagar 90–180 12,000–18,000 New BEL Road 50–80 6,000–10,000 Commercial Street 175–250 16,000–20,000 Jayanagar 80–120 7,000–15,000

Residential Rents Capital Value

Key Precincts

INR per month for a 1,000 sq ft

two-BHK apartment INR per sq ft

Old Madras Road 12,000–16,000 5,000– 6,000 Indiranagar 18,000–20,000 10,000–20,000 Bellary Road 10,000–14,000 3,000–7,000 Hosur Road 10,000–14,000 3,000–5,500 Whitefield 13,000–16,000 3,000–7,000 Tumkur Road 7,000–11,000 3,000–5,000 Kanakapura Road 8,000–12,000 3,000–5,500 Mysore Road 8,000–10,000 2,800–3,500

INFRASTRUCTURE ONGOING >> Having achieved considerable progress in Phase I and ready to execute Phase II of Namma Metro, Bangalore Metro Rail Corporation Ltd (BMRCL) is preparing to take up Phases II-A and III. After completion, the proposed new network of 150 km will virtually throw a metro grid around Bangalore City besides connecting key points such as the Bengaluru International Airport, Hebbal and Magadi Road. After the completion of all the three phases, Bangalore will have a respectable 265 km of metro network. The state government’s high-power committee has already cleared a pre-feasibility study on the proposed network, said a BMRCL statement.


Chennai

After a few months of slowdown, office leasing gained momentum during the month of June. The majority of supply in 2013 would be coming from the most preferred office locations of pre-toll Old

Mahabalipuram Road (OMR). Important to mention, the new office supplies such as Ramanujan IT City and SP Infocity are gaining steady demand from the occupiers. Apart from the OMR, SBD locations such as Guindy and Mount-Poonamallee Road (MPR) also witnessed healthy demand in June. Notable new occupiers in this submarket included Visionary RCM, Solartis and iGold Technologies. Average office rents in Chennai saw marginal increase on the back of improving demand.

The high streets of Chennai continued to witness healthy leasing activity with electronics showrooms such as Poorvika and Samsung, as well as several quick serving resturant brands that opened in June.

The city also witnessed the opening of Spencer’s hypermarket in Velachery. With the new malls operating with nearly full occupancy, retailers are chasing potential properties in the high street locations such as T Nagar, Adyar and Velachery, supporting the rental growth in the high streets.

Residential sales remained restricted in Chennai. However, the number of new launches improved during the month of June. Some of the prominent launches during the month were Prince Highlands in

Iyyapanthangal, Kgeyes Samyuktha in Madambakkam and VGN Dynasty in Melapakkam. In addition, Marutham Group launched two new projects near Tambaram and Casa Grande and added one more villa project named Avalon in Perumbakkam. Capital values and rents remained largely unaltered during the month.



month INR per sq ft Mount Road 60–90 9,000–15,000 RK Salai 70–100 10,000–15,000 Pre-toll OMR 40–62 5,000–6,500 Post-toll OMR 25–35 3,500–5,000 Guindy 40–60 6,000–9,000 Ambattur 20–32 3,250–4,300

Retail Rents

(High Streets) Capital Value


month INR per sq ft T. Nagar 120–180 12,000–15,000 Nungambakkam 130–150 13,000–16,000 Velachery 80–120 10,000–12,000 Pre-toll OMR 50–70 8,000–11,000 Anna Nagar 110–140 11,000–13,000 LB Road (Adyar) 110–130 10,500–13,500


Key Precincts

INR per month for a 1,000 sq ft

two-BHK apartment INR per sq ft

Adyar 20,000–30,000 11,000–17,000 Medavakkam 7,000–14,000 3,600–5,250 Tambaram 6,000–12,000 3,500–4,500 Anna Nagar 15,000–25,000 9,000–14,000 Porur 5,000–10,000 3,800–6,200 Sholinganallur 9,000–12,000 4,250–5,800

INFRASTRUCTURE ONGOING >> Thirumazhisai, located along the Chennai-Bangalore Highway, will soon get a multistoreyed industrial estate at a cost of INR 200 million. In addition, the state government has also planned to create a land bank of 2,000 acres to promote the micro-industries in the state.


Delhi The demand for office space was showing signs of improvement in June with occupiers looking to close the transactions. The major transactions during the month included GroupM Media and Manpower

leasing space in Cyber City-Gurgaon, Samsung taking up space in Noida Expressway and SYSTRA renting space in the SBD. Unitech Infospace, Sec 48, Block 4 in Gurgaon (Sohna Road); Unitech Infospace, Gurgaon Phase II, Building Six on National Highway 8, Dundahera; and Ascendas OneHub Phase I commenced operation in June with moderate to low occupancy. Rents increased in DLF Cyber City, MG Road and Golf Course Road within the given range. However, capital values remained unaltered across all the submarkets.

The retail demand in Delhi was sluggish because of the constraints in the availability of good space. Retailers were mostly active with the pre-commitment of space in the upcoming malls that

would offer the promise of good location, design, branding and business potential. Some of the major transactions in June included Yauatcha and Burberry Brit both leasing space in Prime South, Starbucks renting space in Prime Others and Croma taking up space in the Noida suburbs. TDI Town Square Mall at Nehru Place Metro Station in Prime Others submarket commenced operation with high occupancy. On the contrary, I Mall in the Greater Noida suburbs started with moderate occupancy in June. Rents increased marginally in Prime South and Prime Others submarkets. Interestingly, capital values continued to remain stable throughout the city.

The residential demand witnessed signs of slowdown. Meanwhile, studio apartments performed well because of the low ticket size being associated with it. Over the month, new launches were noted

only in Noida, Ghaziabad and Faridabad, while the prominent launches included ATS Pristine by ATS Infrastructure in Noida, Palm Resort by MR JKG in Ghaziabad and Aravali One by Maxheights Infrastructure in Faridabad. Rents remained stable in June. Meanwhile, capital values increased in growth corridors and the rise in values varies with projects.



month INR per sq ft Barakhamba Road 170-400 28,000-35,000 Jasola 110-170 17,000-21,000 DLF Cybercity 75-78 NA MG Road 115-140 17,000-19,000 Golf Course Road 85-98 12,500-15,000 Sohna Road 47-55 6,500-8,000

Retail Rents Capital Value


month INR per sq ft South Delhi 180-300 24,000-32,000 West and North Delhi 140-230 15,000-23,000 Gurgaon-MG Road 140-270 17,500-23,000 Rest of Gurgaon 60-100 8,000-14,000 Noida 130-220 14,000-25,000 Ghaziabad 90-150 10,500-16,000


Key Precincts

INR per month for a 1000 sq ft 2BHK

apartment INR per sq ft Golf Course Road 22,000-32,000 12,000-16,000 Sohna Road 15,000-20,000 5,800-7,500 Golf Course Extension Road 16,000-22,000 8,000-9,500 NH 8 14,000-19,000 4,500-6,500 Dwarka Expressway NA 5,500-7,500 Noida-Greater Noida Expressway 12,000-14,000 4,000-6,100 Noida City 12,000-14,500 4,700-6,000 Indirapuram 10,000-12,000 4,200-5,000 NH 24 7,000-9,000 2,400-3,200

INFRASTRUCTURE ONGOING >> The fate of the proposed metro link between the Noida City Centre and the Greater Noida Bodaki is still hanging in balance nearly after two years of its conception. With two industrial development authorities, Noida and Greater Noida are struggling to raise about INR 50 billion required to build the 29 km metro project. Important to mention that once built, this project would also be beneficial for the centres’ ambitious Delhi-Mumbai Industrial Corridor (DMIC) project.


Hyderabad Leasing volumes improved in June. Again most leases were focused on Hitec City where good quality leasable space is fast reducing. Leasing activity was more focussed in Hitec in June was

followed by CBD submarket. There were also a few leases closed in Gachibowli submarket. Interestingly, the Pocharam submarket again witnessed a marginal leasing activity as SDG Software leased space. Key transactions in June included Cytel, WHISHWORKS, Apps Associates, QSSI and PARAXEL leasing space at Hitec City, Adap.TV, NetElixir, Centrica and Metlife taking space in the CBD; and IL&FS and Biological E securing space in SBD. Salarpuria Cyber Park, which is almost fully occupied, commenced operations in June. There were many occupiers who vacated spaces either to consolidate or to relocate, increasing the overall vacancy in the city. Therefore, average market rents and capital values remained stable over the month.

Retailers continued to focus on leasing high street space for ready-to-move-in spaces while pre-committing spaces in the upcoming malls. Key transactions in June included Chhabra 555 and Axis

Bank leasing space in Banjara Hills; F Studio taking space at Nagarjuna Circle; and Pai Electronics, W, Khazana and Malabar Gold renting in Dilshuknagar. Pre-leasing continued in few upcoming malls. Rents and capital values remained stable over the month.

Residential sales remained stable in June. New launches also remained stable over the month, with projects including a villa project by Sri Srinivasa Constructions called Esmeralda Fortune in

Kondapur and an apartment project by PNR Infra called High Nest in Kukatpally. Rents and capital values continued to increase marginally across all the submarkets as newly launched residential projects were sold at a price higher than the market average over the month.



month INR per sq ft Begumpet 45–55 4,500–6,500

Banjara Hills 50–60 4,500–7,500 Hitec City 36–42 4,000–5,200

Gachibowli 36–40 4,000–5,000 Uppal 25–35 3,000–4,000

Shamshabad 20–25 3,000–4,000 Retail Rents Capital Value


month INR per sq ft Banjara Hills 100–130 10,000–13,000 Jubilee Hills 110–140 11,000–14,000

Secunderabad 80–100 8,000–10,000 Hitec City 100–130 10,000–13,000 Kukatpally 100–120 10,000–12,000

Dilshuknagar 100–120 10,000–12,000 Residential Rents Capital Value

Key Precincts

INR per month for a 1,000 sq ft 2BHK

apartment INR per sq ft Banjara Hills 20,000–25,000 7,500–14,000 Begumpet 12,000–16,000 4,000–5,500 Kondapur 8,000–16,000 3,200–5,000 Tellapur 6,000–12,000 2,800–3,500

Kukatpally 7,000–10,000 3,500–3,800 Miyapur 5,000–8,000 2,400–3,500

INFRASTRUCTURE ONGOING >> Hyderabad Metro Rail (HMR) update in June: 28 traffic junctions will be involved in situ construction of girders to cover large spans which are more than 112 ft.


Kolkata Kolkata office market witnessed moderate activity as transactions which were going on for a long time concluded during June. The vacancy increased marginally on the back of new completions. Infinity

IT Lagoon and Ecostation, both at Salt Lake, commenced operations in June. The major transactions in the month included Jacobs Engineering Group and Reliance, both leasing space in Salt Lake City. Rents were under pressure amidst large amount vacancy across the peripheral submarkets of the city. Capital values appreciated marginally in the select precincts of CBD. However, they remained unaltered across all other submarkets in the city.

Retail activity in the malls of the city continued to remain sluggish. As a result, vacancy levels remained unchanged in the organised retail stocks of the city. Important to mention, Spencers Galleria

would become operational in the coming months with good precommitments from national and international retailers. Meanwhile, the high streets of the city witnessed moderate demand for retail space with the absence of quality spaces in organised malls. Reliance 4G expanded its outlets in various parts of the city. Rents continued to remain stable in most parts of the city amidst marginal appreciation in select precincts. Capital values inclined in select precincts of the CBD.

Residential demand in the city was stable in June for mid and low segments. However, the luxury category witnessed a dip in absorption. The notable launches in June included South Winds by Srijan

Group at Rajpur; Mounthill Essence and Mounthill Fusion by Mounthill Group, both at Rajarhat; and Godrej Prakriti Phases III and IV by Godrej Properties near Barrackpore. Rents and capital values both remained unchanged in the city.



month INR per sq ft Park Street 110 – 150 13,500 – 23,000 Topsia 75 – 90 9,000 – 11,000 Kasba 70 – 90 9,000 – 11,500 Salt Lake Sector V 40 – 50 4,400 – 5,400 Rajarhat & New Town 32 – 40 3,500 – 4,800 Retail Rents Capital Value


month INR per sq ft Elgin Road 275 – 325 24,000 – 30,000 Park Street (high street) 300 – 350 24,000 – 34,000 Salt Lake City 175 – 225 15,000 – 20,000 Prince Anwar Shah Road 120 – 150 12,000 – 15,000 Rajarhat & New Town 50 – 80 6,000 – 8,000 Gariahat (high street) 200 – 250 18,000 – 22,000 Residential Rents Capital Value

Key Precincts

INR per month for a 1,000 sq ft 2BHK apartment INR per sq ft

Alipore 43,000 – 50,000 14,000 – 23,500 Prince Anwar Shah Road 18,000 – 30,000 7,000 – 14,000 EM Bypass 15,000 – 25,000 5,000 – 11,000 Lake Town 12,000 – 19,000 3,500 – 7,500 Behala 8,000 – 14,000 3,000 – 5,500 Howrah 7,000 – 9,500 2,700 – 5,000 New Town (AA I, II & III) 11,000 – 18,000 3,300 – 6,300 Rajarhat 9,000 – 15,000 2,500 – 4,900

INFRASTRUCTURE ONGOING

>> The Calcutta high court approved the land acquisition for the East-West Metro at Bow Bazar, doing away with the need for a route realignment that threatened to further delay the project and push up costs.

>> With the Civil Aviation Ministry fast-tracking the management privatisation of Kolkata and Chennai airports, the Airports Authority of India (AAI) has set up a cell to execute Public Private Partivipation (PPP) process to operate and maintain these and other aerodromes. The Key Infrastructure Development (KID) cell that was in existence during the privatisation of Delhi and Mumbai airports would handle the public-private partnership process for Kolkata and Chennai airports, which are currently owned and managed by the AAI, official sources said.

http://economictimes.indiatimes.com/topic/Airports-Authority-of-India

http://economictimes.indiatimes.com/topic/Key-Infrastructure-Development

http://economictimes.indiatimes.com/topic/Key-Infrastructure-Development


Mumbai Office leasing continued exhibiting improvement over the month of June. Projects in the advanced stage of construction recorded moderate pre-commitments. Companies were opting for consolidation and

relocation, over the expansion. Banking, financial services and insurance (BFSI) and IT industries remained the driving force behind the robust transactions in the month. Vacancy rates reduced minimally in June across select submarkets, except in the eastern suburbs. Important to mention, eastern suburbs submarket witnessed a few tenants relocating to relatively cheaper submarkets to avail lower cost advantage. Major transactions included Apple Inc leasing space in SBD Bandra Kurla Complex (BKC) and Tata AIA renting space in SBD Central. Kalpataru Prime at Thane submarket commenced operation in June. Rents and capital values in the western suburbs submarket rose slightly. However, other submarkets saw no change in either rents or capital values over the month.

Organised retailing continued to witness moderate demand over the month. Categories such as clothing and F&B remained to be the driving force behind demand generation. Interestingly, high street retail space in the suburbs, especially in Borivali and

Ghatkopar saw moderate transaction activities. A select pool of occupiers has started considering mixed-use project to open up the outlets. However, vacancy in the malls remained stable across the month. Major transactions in June included Cottonworld renting space at Oberoi Mall in the suburbs and Reliance Digital leasing space at Viva City Mall in Thane. Meanwhile, Viva City Mall commenced operation in the month with healthy pre-commitment levels. It houses high-profile tenants from all the retail categories. Rents and capital values in the submarkets, such as the Prime North and the suburbs, increased marginally.

In June, the residential sector in Mumbai witnessed sluggish demand primarily because of significant increase in prices. Hence, most of the projects that were launched during the month saw smaller

configurations to improve the offtake in sales. New launches

included Acme Boulevard in Andheri by Acme Group, Bougainvillea in Kalina and Happy Homes in Vile Parle by Richa Realtors. Rents continued to remain stagnant during the month. In addition, capital values remained stable as the sales activity witnessed a slowdown with the start of the monsoon season.



month INR per sq ft Lower Parel 155–185 19,000–23,000 BKC 260–360 25,000–35,000 Andheri 100–150 9,000–15,000 Goregaon-Malad 80–105 8,000–10,000 Wagle Estate 50–65 5,000–6,000 Thane-Belapur Road 45–60 5,100–6,000

Retail Rents

(mall space) Capital Value


month INR per sq ft Lower Parel 260–380 22,000–32,000 Malad 160–250 12,500–20,000 Ghatkopar 140–225 10,100–18,000

Mulund 125–200 10,000–16,000

Thane 100–170 8,000–14,000 Navi Mumbai 75–150 7,000–12,000 Residential Rents Capital Value

Key Precincts INR per month for a

1,000 sq ft 2BHK apartment

INR per sq ft

Lower Parel 87,000–95,000 24,000–35,000

Wadala 40,000–55,000 14,500–19,100

Andheri 35,000–50,000 11,500–21,000 Ghatkopar 35,000–48,000 9,500–15,000 Ghodbunder Road 12,000–21,000 5,500–9,000

Kharghar 12,000–20,000 4,800–8,000

INFRASTRUCTURE ONGOING >> A signal-free drive between Chembur and South Mumbai was made possible as 14 km of the long-awaited Eastern Freeway was opened to traffic. The traffic police would have little supervision over the 17 km long bridge (3 km to be opened in December 2013) and the freeway’s feeder and arrival routes, include roads leading to the main entrance and exit points.


Pune

The office leasing activity in Pune increased in June, decreasing the vacancy levels marginally. Major transactions over the month included LSI Logic leasing space in Yerwada, Bajaj Finance renting

space in Viman Nagar and Amdocs taking up space in Hadapsar. The IITP Phase I located in Hinjewadi is likely to be operational in the next two—three months with good pre-commitments. Rents and capital values rose marginally in select submarkets, such as Kharadi and Hadapsar, both of which witnessed very low vacancy in most of the buildings. However, both rents and capital values remained unchanged in other parts of the city.

Leasing activity continued to be sluggish in the malls in Pune. The city’s organised retail stock also remained unchanged on the back of absence of new completions. Rents and capital values both were

stable during the month of June. It is noteworthy to mention, Season's Mall in Hadapsar and Prime Mall in Pimpri would likely to be operational by 2H13.

Demand for residential units in Pune continued to be stable in June. Major launches during the month included Kumar Pinakin by KUL Group in Baner and Ayaan by Gandhi Bafna Constructions in Wagholi.

Rents and capital values both remained stable during the month of June.



month INR per sq ft Hinjewadi 34–40 4,000–5,500 Hadapsar 40–50 5,000–6,000 Bund Garden Road 60–70 6,500–7,500 Viman Nagar 50–60 6,000–7,000 SB Road 55–75 6,500–7,500 Koregaon Park 60–70 6,500–7,500

Retail Rents

(High Streets) Capital Value


month INR per sq ft MG Road 100–150 10,000–15,000 Bund Garden Road 90–130 9,000–13,000 FC Road 100–150 10,000–15,000 JM Road 100–150 10,000–15,000 DP Road 90–130 9,000–11,000 SB Road 80–130 8,000–11,000


Key Precincts

INR per month for a 1,000 sq ft two-BHK apartment INR per sq ft

Wakad 10,000–12,000 4,500–5,500 Kharadi 11,000–15,000 4,800–5,800 Hadapsar 12,000–16,000 5,000–6,000 Hinjewadi 9,000–11,000 4.000–5,500 Undri 9,000–12,000 3,800–4,800 Pimpri-Chinchwad 8,000–12,000 4,000–5,000

INFRASTRUCTURE ONGOING >> The civic administration of Pimpri Chinchwad Municipal Corporation (PCMC) would start major construction works from November onwards, while ward-level projects would begin from October onwards. The implementation of small development works in wards, such as laying drainage lines, laying footpaths and tarring of internal roads, has not started yet, despite the PCMC making budgetary provision for it.

About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management. Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 25,400 employees operating in 76 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012. For further information, please visit our website, www.ap.joneslanglasalle.com About Jones Lang LaSalle India Jones Lang LaSalle is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 6100, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory. The firm was named the Best Property Consultancy in India (5 Star Winner) at the International Property Awards - Asia Pacific for 2012-13. For further information, please visit www.joneslanglasalle.co.in

For more information about our research

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Research Dynamics 2013 Pulse reports from Jones Lang LaSalle are frequent updates on real estate market dynamics.

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JLL Pulse - July2013 - India