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Pulse

Monthly Real Estate Monitor

Market Highlights JUNE 2016

Office space demand

continued to increase

across most cities

Retail space demand

improved in Chennai,

Hyderabad and

Mumbai

Residential demand

remained stable in all

cities

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Market

Sentiment

Deal of

the

month

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Green Wall

Pulse


Favourable Neutral Unfavourable

Legend: Market Sentiment

India’s Residential Sector Poised for Faster Growth by Q4 2016 India’s residential property market has been through turbulent times over the past few years. However, things are looking up now with changes in the economy and various initiatives announced by the government. Economic Performance: FY 2015-16 saw the Indian economy become the fastest growing in the world with GDP growth of 7.6%. This was despite adverse global economic circumstances that put a lot of pressure on earnings, exports and overall development. The Reserve Bank of India (RBI) has cut the key interest rates and decreased the Repo rates since January 2015. An increase in the industrial growth rate, stabilisation of crude oil prices and decreased CPI inflation combined with expectations for a good monsoon will likely take the growth of the Indian economy to a healthy rate of 7.7-7.8%. There are signs of economic revival, along with foreign investment coming in the country. FDI increased in the country by a whopping 37% during FY 2015-16. Real Estate Performance So Far: The real estate sector saw the worst phase in 2015-16 with sales and prices plummeting. High inventory levels, diminished demand and limited liquidity affected new launches. Overall residential sales were down by 2.2% in FY 2015-16. However, a positive twist to this otherwise grim situation was the rise in sales in Q1CY2016 by 9%. The Road Ahead: Trends are beginning to change basis expectations of a good monsoon, a revival in economy, reducing inflation and the fact that residential prices have bottomed out. Also, the improving regulatory environment in the real estate sector and the decrease in interest rates by the RBI, coupled with schemes such as Smart Cities, AMRUT and “Housing for All by 2022”, are beginning to have a positive influence. The setting up of the Real Estate Regulatory Authority to ensure time-bound delivery of projects and more efficient and transparent dealings with developers point towards consumers gaining trust and coming back to investing in the market. A convincing start has been seen in the affordable housing segment, with this category witnessing increased traction on the peripheries of the major cities. Global factors do have an impact, but India’s current low inflation rate coupled with low interest rates will induce faster growth in the residential real estate sector. Various additional factors point towards positive sentiment, including the stimulus the recent Union Budget provided, improved funding for the industry and the clearing of roadblocks on REITs.

Ashwinder Raj Singh, CEO – Residential Services at JLL India

For further reading, please refer to following link: ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

http://jllapsites.com/real-estate-compass/author/ashwinder-raj-singh/

With the latest addition of 13 more cities, the Smart Cities mission has made inroads into 25 states/Union Territories in India. The latest list is a good mix of prominent industrial and cosmopolitan cities along with state capitals as well as Tier III and IV cities and bodes well for a holistic approach to developing existing cities as Smart Cities. The geographic spread of the new list also shows encouraging signs of development being focused towards the eastern and north-eastern part of the country where infrastructure development is vital, in line with Modi’s vision to develop the east.

Investment sentiment improving

Realty major DLF entered into an amended agreement to sell its 32 screens of DT cinemas to multiplex operator PVR at INR 433 crore.

The Real Estate (Regulation and Development) Act, 2016 will come into force on May 1 2016, starting the process of making operational rules and institutional infrastructure.

Metro projects are not required to seek environmental clearance from the Central Government and state governments, the environment ministry and Delhi Metro Rail Corporation told the National Green Tribunal.

Next










DELHI

KOLKATA

CHENNAI

BANGALORE

HYDERABAD

PUNE MUMBAI

AHMEDABAD

For more information about our research, contact Ashutosh Limaye National Director, Research and REIS +91 98211 07054 [email protected]

Aritra Das Analyst, Research +91 95157 20645 [email protected]

Research Dynamics 2016 Pulse reports from JLL are frequent updates on real estate market dynamics.

www.joneslanglasalle.co.in

Cities

Office

Rental

Value

Retail

Rental

Value

Residential

Capital

values

AHMEDABAD

DELHI

MUMBAI

PUNE

BANGALORE

CHENNAI

HYDERABAD

KOLKATA

Legend

Growing Stabilise Stagnate Falling

Weather Map

Back to top

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy

Rental Value (RV) / Capital Values (CV) Increasing Moderate Increase Stable Moderate Fall Falling

Pulse


DATA ANALYSIS FOR THE MONTH OF MAY 2016

Ahmedabad

Policy/Infrastructure No major policy was announced by the government.

Back to top

Ahmedabad office market witnessed no major transaction during the month. There was notable demand for small office units from occupiers. New Completions: • Mondeal Heights became

operational in the SBD sub-market.

During the month, the Suburbs sub-market remained active in contributing retail space demand in the city. Anchor tenants were seen executing the transactions along with the vanilla brands. Major Transactions: • Pantaloons at Prahaldnagar

There was noticeable demand for affordable housing in the residential market. New launches were recorded in suburban areas such as Gota and Bopal. New Launches: • Shivalik Park View in South Bopal

Key Precincts Rental Value (INR per sq ft

per month)

Capital Value (INR per sq ft)

Prahlad Nagar 35 - 50 6000 - 7500

S G Highway 35 - 50 6000 - 7500

Ashram Road 32 - 42 5500 - 6500

Navarangpura 32 - 44 5500 - 6500

Koba 22 - 35 4000 - 5000


per month)


CG Road 100 - 125 16000 - 18000

SG Highway 80 - 110 11000 - 13000

Ashram Road 110 - 130 14000 - 16000

Chandkheda 60 - 80 9000 - 12000

Koba 50 - 70 8000 - 10000

Key Precincts

Rental Value (INR per month for a 1,000 sq ft

2BHK apartment)


Naroda 4000 - 6000 2200 - 2500

Gota 5000 - 8000 2500 - 2800

Navrangpura 15000 - 20000 6000 - 7000

SG Highway 10000 - 15000 5500 - 7500

Satellite 12000 - 15000 4000 - 6000

South Bopal 8000 - 12000 3000 - 4000

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy


Pulse



Bangalore

Policy/Infrastructure The Elevated Steel Corridor, which is worth INR 1,350 crore has been approved by the State Government. The six-lane steel flyover will cover a width of 25 m and run to a length of 6.75 km. The signal-free corridor will connect Basaveshwara Circle to Hebbal Flyover via Le Meridian Hotel and Mekhri Circle. The project is likely to commence shortly and will be completed by May 2018.

Back to top

The Sarjapur-Marathahalli stretch of the Outer Ring Road is witnessing construction of many new commercial office projects given the supply crunch. Major Transactions: • Broadridge and CGI leased space at

Whitefield • Beckman Coulter, Yodlee and

Noodle Analytics leased space at ORR and Nvidia leased space at Hebbal

Leasing strengthened in malls over the month. Major Transactions: • Girayas Explorium and Funskool

at Malleshwaram • Wildcraft and Lee Wrangler at

Indira Nagar • Biba and GKB at Banaswadi Main

Road

Demand in the southern suburbs of Bangalore is strengthening as it is preferred by the working population due to good connectivity with commercial hubs. Major Launches: • Bren Zen Gardens at Hosa Road • Prestige Lakeridge, Purva Bird Of

Paradise at Kanakapura Road • Ajmera Annex at Electronic City and

Habitat Iluminar at Kengeri


per month)


CBD 85–130 12,000–22,000

Old Airport Road 60–75 7,000–12,000

Outer Ring Road (Eastern) 58–67 5,500–7,500

Old Madras Road 55–75 6,000–8,500

Electronic City 34–38 3,500–4,500


per month)


Koramangala 90–160 9,000–18,000

Indiranagar 120–180 12,000–18,000

New BEL Road 80–120 6,000–12,000

Commercial Street 175–250 16,000–20,000

Jayanagar 80–150 8,000–18,000

Key Precincts


2BHK apartment)


Old Madras Road 15000-25000 4500-6500

Indiranagar 22000-35000 12000-17000

Bellary Road 12000-18000 4900-7600

Hosur Road 13000-20000 4300-6500

Whitefield 15000-25000 4500-8000

Tumkur Road 8000-15000 4200-6500

Kanakapura Road 8000-15000 4000-6000

Mysore Road 9000-13000 3000-5500

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy


Pulse



Chennai

Policy/Infrastructure Chennai Port Trust has signed a Memorandum of Understanding with Southern Railway to operationalise the rail traffic movement from Chennai to Walajabad.

Back to top

Given the positive investment scenario there has been unabated demand for office space in the city. Major Transactions: • Astra Zeneca at Nandambakkam • RBL at R K Salai • KLS Martin at Anna Nagar

There was a good traction of space in malls as well as high streets. Major Transactions: • GAP at Market City • Brown Tree at Thiruvanmiyur • Brick House Bistro at Besant

Nagar • United Colors of Benetton and

Arrow at TTK Road

The launches in the residential sector have been slow as a result of elections. Major Launches: • Habitat at Siruseri by Appaswamy

Real Estate


per month)


Mount Road 60–85 9,000–16,500

RK Salai 65–90 10,000–15,000

Pre-toll OMR 40–75 5,000–6,500

Post-toll OMR 35–40 3,000–6,000

Guindy 45–65 6,500–9,000


per month)


T. Nagar 120–180 12,000–15,000

Nungambakkam 130–150 13,000–16,000

Velachery 90–125 10,000–12,000

Pre-toll OMR 80–100 8,000–11,000

Anna Nagar 120–150 11,000–13,000

LB Road (Adyar) 100–140 10,500–13,500

Key Precincts


2BHK apartment)


Adyar 20,000–30,000 18,000–22,000

Medavakkam 11,000–14,000 4,000–6,000

Tambaram 8,000–15,000 4,000–6,000

Anna Nagar 18,000–25,000 10,000–15,000

Porur 7,000–12,000 4,200–6,200

Sholinganallur 9,000–12,000 4,500–6,000

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy


Pulse



Delhi NCR

Policy/Infrastructure • The floor area ratio (FAR) for residential plots increased in Gurgaon

and owners can purchase additional FAR • 14 laning of Delhi-UP border and the Dasna section of the Delhi-

Meerut Expressway on NH-24 approved by Cabinet Committee on Economic Affairs

Back to top

Demand has retained momentum with visibly healthy traction across different occupier categories with a mix of expansion and relocation. Major Transactions: • TCS in Sector-62, Noida City, Axalta and Apple in Golf Course Road and SBI in the CBD New Completions: • Worldmark 3 in the SBD sub-market

Space take-up limited due to low vacancy rates in prime malls. Major Transactions: • Decathlon and Spencer’s in

Gurgaon, Dior in Prime South New Completions: • Worldmark 3

Demand remains slow, but low-cost and projects nearing completion are witnessing buyer traction. Major Launches: • No launches recorded during the

month


per month)


Barakhamba Road 170–400 28,000–35,000

Jasola 110–170 17,000–21,000

DLF Cybercity 105–115 NA

MG Road 115–140 17,000–19,000

Golf Course Road 90–110 12,500–15,000


per month)


South Delhi 200–400 26,000–40,000

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


2BHK apartment)


Golf Course Road 27,000–32,000 13,000–19,000

Sohna Road 17,000–20,000 5,800–7,500

Golf Course Extension Road 19,000–22,000 8,500–11,000

Dwarka Expressway NA 5,500–7,500

Noida–Greater Noida Expressway

13,000–15,000 4,300–6,500

Noida City 12,000–14,500 4,700–6,000

Indirapuram 11,000–12,000 4,500–5,300

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy


Pulse



Hyderabad

Policy/Infrastructure L&T Hyderabad Metro Rail, a subsidiary of Larsen & Toubro, which is implementing the INR 16,000 crore elevated metro rail project, announced that the work is expected to be delayed by almost 18 months.

Back to top

The Hyderabad market witnessed good traction. Good demand and low availability of quality space pushed rentals in the Western sub-market. Major Transactions: • Pole to Win and Stratosphere IT

services Pvt Ltd. leased space at Kukatpally

• Red Brick leased space at Hitec City

The retail market in the city witnessed robust growth with several transactions in upcoming shopping malls and on high streets. Major Transactions: • Burger King at Hitec City • Brand Factory at Attapur • Cinepolis at Uppal • Satyam Cineplex at Gachibowli

The residential market continued to witness an increase in launches while demand remained stable. Major Launches: • Alekhya Palm Woods at

Hafeezpet • Sumadhura Acropolis at

Nanakramguda • Ark Terminus Hamptons at

Kondapur


per month)


Begumpet 45–50 5,500–6,500

Banjara Hills 45–55 7,000–8,000

Hitec City 48–55 6,000–7,000

Gachibowli 40–48 5,500–6,000

Uppal 30–35 4,500–5,500


per month)


Banjara Hills - Jubilee Hills 140–160 13,500–16,000

Secunderabad 120–130 12,000–13,000

Hitec City 120–140 12,000–14,000

Kukatpally 100–115 10,000–11,500

Himayatnagar 150–170 15,000–17,000

Key Precincts


2BHK apartment)


Banjara Hills 25,000–35,000 7,000–15,000

Begumpet 17,500–25,000 4,500–5,500

Kondapur 11,000–20,000 3,800–5,000

Gachibowli 11,000–20,000 3,500–4,800

Tellapur 7,000–12,500 3,000–3,800

Kukatpally 15,000–20,000 4,000–5,000

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy


Pulse



Kolkata

Policy/Infrastructure A Detailed Project Report is being prepared for a road-cum-rail bridge across the Hoogly on Sagar Island for connectivity to the proposed Deep Sea Port facility on the island. It will be built by the National Highways Authority of India at a cost of nearly INR 2,800 crore.

Back to top

The market witnessed tepid transaction activity. Most transactions were for small to medium sized floor space. Major Transactions: • Eagle Burgmann leased space in

the SBD sub-market • Destimoney, Tyco Fire and

Mitsubishi leased space in PBD

The market remained stable. While demand remained steady, the availability of quality space determined the movement of transactions. Major Transactions: • Kalyan Jewellers leased space in

Gariahat and Salt Lake • Pantaloons and 10 Downing Street at

Sector V • W, All and Global Desi at Forum

Rangoli

The residential market remained stable while launches remained steady over the month. Major Launches: • Siddha Sky at Tiljala • Loudon Star at Loudon Street


per month)


Park Street 110–135 13,000–20,000

Topsia 70–90 7,500–10,000

Kasba 75–90 8,000–11,000

Salt Lake Sector V 40–45 4,000–4,800

New Town and Rajarhat 32–36 3,200–4,100


per month)


Elgin Road 300–350 24,000–28,000

Park Street (high street) 325–375 25,000–31,000

Prince Anwar Shah Road 150–200 15,000–18,000

Salt Lake 185–225 15,000–20,000

New Town and Rajarhat 60–80 6,500–8,000

Gariahat (high street) 200–250 16,000–22,000

Key Precincts


2BHK apartment)


Alipore 50,000–70,000 15,000–22,000

Prince Anwar Shah Road 20,000–35,000 7,000–14,000

EM Bypass (Topsia) 15,000–25,000 6,000–10,000

Lake Town 10,000–16,000 4,000–7,500

New Town (AA- I, II & III) 9,000–15,000 3,500–6,000

Rajarhat 7,000–14,000 3,000–4,500

Behala 7,000–14,000 3,000–5,500

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy


Pulse



Mumbai

Policy/Infrastructure The city’s New Development Plan (DP) was presented to the standing committee meeting of the Brihanmumbai Municipal Corporation on 28 May 2016 by the civic administration. Corporators and the public will have a 60-day window to file their objections and suggestions before the DP is sent to a select committee comprising civic and State Government representatives.

Back to top

During the month, the Mumbai office market witnessed transactions especially for small office space. Sub-markets such as SBD North and Navi Mumbai saw healthy leasing activity. Major Transactions: • Imarticus Learning in SBD North • Sulzer Pumps in Navi Mumbai

A new mall became operational in the peripheral suburbs. It comes with good pre-commitment . Demand for quality space remains strong. Major Transactions: • Skechers, Barbeque Nation and

Cotton Culture in the suburbs New Completions: • Orion Mall, Panvel

The Mumbai residential sector witnessed a slight drop in sales and new launches in May. Developers are concentrating on offloading the previous unsold inventory in under-construction projects. Major Launches: • Amardeep Anutham at Mulund • JVM Orchid at Thane • Tricity Panache at Seawoods


per month)


Lower Parel 165 - 210 17,500 - 22,000

BKC 230 – 320 27,500 - 34,000

Andheri - Kurla Road 100 - 150 10,000 - 16,000

Goregaon-Malad 85 - 135 9,500 - 12,500

Wagle Estate 50 - 65 5,200 - 6,900


per month)


Lower Parel 260-390 23,000-32,300

Malad 130-230 12,500-20,000

Ghatkopar 120-220 10,100-18,300

Mulund 150-250 9,500-15,500

Thane 100-180 8,000-14,500

Navi Mumbai 85-140 8,000-12,000

Key Precincts


2BHK apartment)


Lower Parel 65,000-1,10,000 25,000– 40,000

Wadala 36,000-60,000 13,500–23,000

Andheri 32,000-55,000 12,500–21,500

Ghatkopar 30,000-46,000 11,500–17,000

Ghodbunder Road 12,000–25,000 6.000–9,500

Kharghar 10,000–18,000 6,000–9,000

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy


Pulse



Pune

Policy/Infrastructure The Pune Smart City Development Corporation received INR 283 crore, the first instalment of funds for projects under the Smart Cities Mission, from the Union and State Governments. The Union Government chipped in with INR 186 crore, while the State gave INR 93 crore; INR 4 crore was deducted for administrative charges.

Back to top

Demand for office space in Pune remained stable in May. The city saw noticeable demand in built-to-suit and Grade B properties. Major Transactions: • Icertis leased space in ICC Tech

Park • UBS leased space in

Commerzone.

Leasing activity in malls remained stable. A few select malls witnessed marginal rent appreciation during the month. Major Transactions: • Pantaloons opened for business

on Baner Road

In May, the sales in the Pune residential market remained stable. However, Grade A launches witnessed good demand during the month. New Launches: • Amar Serenity launched on Baner-

Pashan Road • Ganga Fairmont launched in

Tathawade


per month)


Hadapsar 55-70 6,500-9,000

Kharadi 55-70 6,500-9,500

Hinjewadi 38-48 5,000–7,000

Viman Nagar 55–75 7,000–10,000

SB Road 70–85 7,000–12,000


per month)


MG Road 160-200 22,000–30,000

Bund Garden Road 100-120 20,000-25,000

FC Road 150-200 25,000-30,000

JM Road 150-190 25,000-30,000

DP Road 100-120 18,000–26,000

SB Road 90-110 18,000-25,000

Key Precincts


2BHK apartment)


Wakad 10,000–13,000 5,000–6,500

Hinjewadi 9,000–11,000 4,800–6,500

Kharadi 11,000–15,000 5,000–7,200

Hadapsar 13,000–18,000 5,500–7,500

Undri 8,000–12,000 4,000–5,500

Pimri-Chinchwad 8,000–15,000 4,500–6,000

For more information about our research, contact Ashutosh Limaye National Director, Research and REIS +91 98211 07054 [email protected]

Aritra Das Analyst, Research +91 95157 20645 [email protected]

Research Dynamics 2016 Pulse reports from JLL are frequent updates on real estate market dynamics.

About JLL JLL (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. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com JLL has over 50 years of experience in Asia Pacific, with over 33,000 employees operating in 92 offices in 16 countries across the region. The firm won 15 awards at the International Property Awards Asia Pacific in 2016 and was named number one real estate advisor in Asia at the 2015 Euromoney Real Estate Awards. www.ap.jll.com

About JLL India JLL 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 8500, 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 awarded the Property Consultant of the Decade at the 10th CNBC-Awaaz Real Estate Awards 2015 and the Best Property Consultancy in India at the International Property Awards Asia Pacific 2016-17. For further information, please visit www.joneslanglasalle.co.in

http://www.jll.com/

http://www.ap.jll.com/

http://www.joneslanglasalle.co.in/

Documents

Market Highlights JUNE 2016 - …d3ajvuw23j7pxv.cloudfront.net/upld_466682092813860092_PulseJune... · MUMBAI PUNE AHMEDABAD ... width of 25 m and run to a length of 6.75 km