8/8/2019 Pune Residential Market Beat 2q10

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MARKETBEAT

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RENTALS AS OF 2Q 2010

Location Average % Change from Short Achievable Rent (Local Currency) Term

INR/mth 3 mth 1 yr Outlookago ago

High SegmentNorth-East 120,000-200,000 0% 3% Aundh 50,000-160,000 0% 0% Kalyani Nagar 130,000-210,000 0% 10% Wanowrie 18,000-25,000 0% 5%

Mid SegmentNorth-East 25,000-37,000 0% 17% Aundh 14,000-25,000 0% 5% Baner 14,000-21,000 0% 3% Wakad 10,000-16,000 0% 4% Kalyani Nagar 18,000-28,000 0% 7% Wanowrie 12,000-17,000 0% 4%

CAPITAL VALUES AS OF 2Q 2010

Location Achievable Price % Change from ShortINR/sq.ft. (Local Currency) Term

3 mth 1 yr Outlookago ago

High SegmentNorth-East 6,750-10,500 0% 15% Aundh 5,500-6,750 0% 5% Kalyani Nagar 7,000-11,000 0% 16% Wanowrie 3,200-3,800 0% 24%

Mid SegmentNorth-East 4,500-5,500 0% 18% Aundh 3,600-4,500 0% 20% Baner 3,000-4,000 0% 18% Wakad 2,400-3,000 0% 29% Kalyani Nagar 4,500-5,500 0% 14%

Wanowrie 3,000-3,200 0% 19%

KEY TRANSACTIONS

Property Location Type Area (sq. ft) Value (INR)

Park Street Wakkad Sale 2,400 sq.ft. 14,300,000TitaniumSatellite Tower Kalyani Nagar Lease 3,500 sq.ft. 120,000 pmWaterfront Kalyani Nagar Lease 3,200 sq.ft. 240,000 pm

Note:Values are average prices for the respective areasThe above values for high range typically include units of 1,650-3,000 sq.ft.The above values for mid range typically include units of 1,200-1,400 sq.ft.

Key to Locations:

North-East: Koregaon Park, Bund Garden Road, Kharadi, etc.

2Q 2010

Overview

Pune witnessed moderate volumes for rental and purchaseactivities, leading to stable price points across all micro markets.The citys high end market witnessed the soft launch of selectprojects from developers seeking to test the markets appetite.The poor response, however, led to an extension of projectedtimelines, while the focus remained on mid segment andaffordable projects.

Rental Values

Rental values witnessed stability over the previous quarter in 2Q

2010. This was largely because of significant new supply enteringboth high and mid end segments of Pune. Demand being spreadout across the city, and across segments, it was difficult toidentify any clear rental trends during the quarter under review.

Capital ValuesCapital values across all micro markets remained stable in thesecond quarter; primarily due to the appreciation witnessedduring 1Q 2010, which sustained itself. Additionally, significantlaunches in the suburban and peripheral micro markets led tostabilization of values as investors and end users had multipleoptions to consider. Projects priced in the INR 3-6 millionbracket witnessed the highest enquiries from end users; and is

expected to see sound absorption in the short to medium term.

Outlook

High end segments are expected to witness stagnation in theshort term, as the supply of under construction propertiesremains higher than the current demand. The mid segment isexpected to witness increase in volumes during the next quarterdue to its continued price attractiveness. The significant existingsupply options as well as the anticipated launches in the nextquarter are together expected to ensure a stable capital valuetrend in the mid and high end segments of the city.

Punes suburban micro markets of Baner and Wakad are

expected to witness higher investor interest in the comingmonths, primarily due to the upcoming and existing commercialsupply as well as the improving physical and social infrastructureof the region.

PUNE RESIDENTIAL REPORT

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION

Legend

Market Rising Market Stable Market Falling