Residential property market overview 2Q 2012

Accelerating success.

Residential Property Market OverviewINDIA

QUARTERLY UPDATE | AUGUST | 2012

www.colliers.com

SBI Home Loan Rate for Loan upto INR 50 Lakhs. SBI Fixed Deposit rate for a period of more than one year and

amount below INR 1 Crore

ECONOMIC BAROMETER

RETuRN ON AlTERNATIvE INvEsTMENTs

Jun-11 Jun-12

REPO RATE 7.50% 8.00%

REVERSE REPO RATE 6.50% 7.00%

CRR 6.00% 4.75%

INFLATION 9.51% 7.55%

HOmE LOAN RATE 9.50% 11.00%

Jun-11 Jun-12 YoY %

Change

GOLd 22,114 30,097 31.10%

SILVER 52,590 54,494 3.62%

FIxEd dEPOSIT 8.25% 9.00% 9.09%

EQUITY 18,132 16,949 -6.52%

REALTY INdEx 2,123 1,623 -23.56%

RESEARCH & FORECAST REPORTsYDNEY CENTRAl BusINEss DIsTRICT

INdIA RESIdENTIAL mARkETREsEARCh REpORT

2Q 2012 | RESIDENTIAL

2

2

1

1

Repo Rate Reverse Repo Rate Cash Reserve Ratio Wholesale Price Index

ECONOMIC INDICATORs

In P

erce

ntag

e

MACRO ECONOMIC OvERvIEW

GdP growth rate saw a sharp reduction to 5.3% during 1Q 2012. The most impacted sector •includes agriculture, mining & quarrying, manufacturing and construction. Prime reasons attributed to this were uncertainties in domestic policy, cumulative impact of monetary tightening and slackening of external demand.

Inflation as measured by the wholesale price index (WPI), 7.25%, 7.55%, 7.23% in June, may & •April respectively. There was upward pressure on the WPI, due to steep price increase of vegetable, milk, pulses & protein based items. While inflation remained a concern, the WPI stands 200 basis points lower in 2Q 2012 as compared to the same period last year.

Early in the quarter, RBI cut the repo and reverse repo rates by 50 basis points each to boost the •economy. However, the increased inflation rate has left a limited scope for further reduction in repo rates.

The rupee remained under pressure and depreciated further against both the Euro and the US •dollar as foreign investors were worried about persisting inflation, and the current account gap. The Rupee closed at INR 55.68 to 1 USd and INR 70.04 to 1 Euro as on 15th June 2012.

The department of Industrial Policy and Promotion (dIPP) recorded a total FdI inflow for April •2012 at $ 1.85 billion which is 41% lower as compared to $ 3.12 billion in April 2011. The housing and construction sectors contributed only 2.96% to the total FdI received.

4.0

6.0

8.0

10.0

12.0

Feb

‘08

Feb

‘09

dec

‘09

Oct

‘09

Feb

‘11

dec

‘10

Apr

‘08

Apr

‘09

Apr

‘10

Feb

‘10

dec

‘09

Apr

‘11

Jun

‘08

Jun

‘09

Jun

‘10

Jun

‘11

Oct

‘08

Aug‘

08

Augt

‘09

Oct

‘10

Aug‘

10

Aug

‘11

Feb‘

12

Apr

‘12

Jun

‘12

dec

‘11

Oct

‘11

2.0

0.0

(-2.0)

Source: Colliers International India Research

CApITAl vAluE TRENDs

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

3Q20

11

2Q20

11

1Q20

11

4Q20

10

3Q20

10

2Q20

08

1Q20

08

INR

per

sq ft

75,000

5,000

25,000

35,000

15,000

45,000

65,000

55,000

3Q20

08

malabar Hill, Altamount Road, Carmichael Road

Powai

khar

Prabhadevi

Colaba, Cuffe ParadeBandra

Andheri

Worli

Juhu

Breach Candy, Napeansea Road, Peddar Road

2Q20

12

1Q20

12

4Q20

11

Rebase to 100

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

09

1Q20

08

1Q20

10

2Q20

10

3Q20

10

COllIERs REsIDEX 2Q 2012 - MuMBAI

50

60

70

100

90

80

120

140

150

130

110

Santacruz

COllIERs INTERNATIONAl | p. 3 p. 3 | COllIERs INTERNATIONAl

NEW pROJECTs

PROJECT NAmE LOCATION dEVELOPER NAmE TENTATIVE POSSESSION RATE (PER SQ.FT.)*

Aarey Green Goregaon East karamvir Avanta Group 4Q 2015 9,000

Blu Worli Indiabulls Ltd. 4Q 2016 40,000

Habitat Andheri West Naman Group 4Q 2014 14,000

Summit Borivali East Rustomjee Group 4Q 2014 9,500

Veda Parel Omkar developer 2Q 2014 14,000

Western Woods Goregaon East karamvir Avanta Group 4Q 2015 9,500

CITY REsIDENTIAl BAROMETER

mUmBAI

1Q 2012 2Q 2012

RENTAl vAluE

CApITAl vAluE

INDIA | 2Q 2012 | RESIDENTIAL

2Q 2012 pREMIuM REsIDENTIAl AvERAgE CApITAl vAluE

Cola

ba, C

uffe

Para

de

INR

per

sq ft

mal

abar

Hill

, Alta

mou

nt

Road

, Car

mic

hael

Roa

d

Wor

li

Brea

ch C

andy

, Nap

eans

eaRo

ad, P

edda

r Ro

ad

Prab

hade

vi

Band

ra

Sant

acru

z

Andh

eri

Pow

ai

khar

Juhu

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2Q 2012 pREMIuM REsIDENTIAl AvERAgE RENTAl vAluE

Prabhadevi

Colaba, Cuffe Parade

Breach Candy, Napeansea Rd.,

Peddar rd.

malabar Hill, Altamount Road, Carmichael Road

200

150

100

50

0

Powai

Andheri

Juhu

khar

Santacruz

Worli

Bandra

Note: * As quoted by developer

INR per Sq ft Per month

MuMBAI

In 2Q 2012, mumbai residential market •witnessed the launch of several new residential projects, such as “Blu” by India Bulls Ltd., “Habitat” by Naman Group, “Veda” by Omkar Group, “Summit” by Rustomjee Group, “Western Woods” and “Aarey Green” both projects by karamvir Avanta Group. All of these projects were priced in the range of INR 9,000 – 14,000 per sq.ft. except “Blu” at Worli which was launched at INR 40,000 per sq.ft.

In this quarter at most sites, the pace of •construction remained slow, and no new residential project/phases of the project was completed in mumbai.

Capital values in the western and central •suburbs have witnessed an increase in the range of 2 to 10% quarter on quarter, however, south central locations like malabar Hill, Altamount Road, Carmichael Road, Breach Candy, Napeansea Road, Peddar Road, Colaba, Cuffe Parade and Worli capital values remained stable.

The premium residential rental market •remained active in locations such as Napeansea Road, Bandra, khar, Powai and Goregaon East; In these locations rental values appreciated in the range of 1 to 2% quarter on quarter.

The state government has made an amendment •to the the new dCR rules, accordingly, area used for balconies, flower beds, terraces, voids, and niches will now be counted in the Floor Space Index (FSI). According to the new policy, land owners/developers will be given a higher the FSI of 2.5 if they jointly develop the plots of 2,000 sq.mtrs with maharashtra Housing and Area development Authority (mHAdA).

140

p. 4 | COllIERs INTERNATIONAl

ONgOINg pROJECTs


kings Court Greater kailash- II dLF Ltd. 1Q 2015 36,000

Queens Court Greater kailash- II dLF Ltd. 1Q 2015 30,000

Capital Greens Shivaji marg dLF Ltd. 2Q 2015 14,000

Winter Hills dwarka morh Umang Realtech 4Q 2013 7,000

DElhI

during 2Q 2012, limited new supply was •added in the city’s premium residential inventory; several small redevelopment residential projects were ready for possession in locations such as Anand Niketan, Vasant Vihar and Shanti Niketan.

No new premium residential project was •launched during this quarter.

Capital values for premium residential •properties appreciated in the range of 2 to 10% quarter on quarter across all the micro markets. The price increase was primarily attributed to limited prime supply and further scope of development.

Parallel with capital values, rental values •also appreciated in the range of 6 to 10% on quarter on quarter basis in locations such as Panchashila, Anandlok, Niti Bagh, SdA (Safdarjung development Area), Friends Colony and maharani Bagh. However, rental values in locations such as Chanakya Puri, Golf Links, Jor Bagh and Sunder Nagar declined by 7%.

This quarter the state govt. has proposed •three new flyovers in delhi. A two way flyover will connect north and east delhi connecting under construction Wazirabad Signature Bridge to Bhajanpura. Two one way flyovers will connect delhi and Ghaziabad along with Seelampur.These developments are expected to ease out the traffic conditions in these areas.


1Q 2012 2Q 2012

RENTAl vAluE

CApITAl vAluE





dELHI

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

90,000

100,000

80,000

Anan

d Ni

keta

n,

Vasa

nt V

ihar

Panc

hash

ila, A

nand

lok,

Niti

Bagh

, SdA

Frie

nds

Colo

ny,

mah

aran

i Ba

gh

Shan

ti Ni

keta

n,

Wes

tend

Grea

ter

kaila

sh

I & II

, Sou

th

Exte

nsio

n

Golf

Link

s, J

or B

agh,

Su

nder

Nag

ar

Chan

akya

Pur

i

Prith

vira

j Roa

d,

Aura

ngze

b Ro

ad

INR

per

Sq F

t

10,000

0

20,00030,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

1Q20

08

2Q20

08

1Q20

09

2Q20

09

3Q20

09

1Q20

10

3Q20

08

4Q20

08

4Q20

09

2Q20

10

3Q20

10

4Q20

10

3Q20

11

1Q20

11

2Q20

11

Golf Links, Jor Bagh, Sunder Nagar

Shanti Niketan, Westend

Friends Colony, maharani BaghPanchashila, Anandlok, Niti Bagh, SdA

Greater kailash I & II, South Extension

Chanakya Puri

Prithviraj Road, Aurangzeb Road

Anand Niketan, Vasant Vihar

INR

per

Sq F

t

Golf Links, Jor Bagh, Sunder Nagar

Chanakya Puri

Prithviraj Road, Aurangzeb Road

Anand Niketan, Vasant Vihar

Greater kailash I

& II, South Extension

Friends Colony, maharani Bagh

Shanti Niketan, Westend

Panchashila, Anandlok, Niti Bagh, SdA

200

160

120

80

40

0

2Q20

12

1Q20

12

4Q20

11

COllIERs REsIDEX 2Q 2012 - DElhI

Rebase to 100

50

60

70

80

90

100

110

120

150

130

1Q20

08

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

09

1Q20

10

2Q20

10

3Q20

10




COllIERs REsIDEX 2Q 2012 - guRgAON

Rebase to 100

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

09

1Q20

10

2Q20

10

3Q20

10

0

20

40

100

80

60

140

200

180

160

120

COllIERs INTERNATIONAl | p. 5

NEW pROJECTs


Aravali Sector 79 Supertech Ltd. 4Q 2015 5,000

Irene Sector 78 Paras Buildtech 4Q 2015 6,500

m3m Sector 107 m3m 4Q 2015 5,300

Spire Condominiums Sector 106 Spire Group 4Q 2015 5,250



guRgAON

In 2Q 2012, several premium projects/phases •of the projects were ready for possession in Gurgaon, including: “Central park 2” by Central Park at Sohna Road and “Close South” and “Fresco” by Unitech Ltd. both located at Golf Course Extension Road.

A number of projects were launched this •quarter including: “Aravali” by Supertech Ltd. at Sector 79, “Irene” by Paras Buildtech at Sector 78 and “Spire Condominiums” by Spire at Sector 106. All of these projects were priced in the range of INR 5,000 to INR 6,500 per sq.ft.

during the same quarter, capital values •registered an increase in the range of 3 to 6% quarter on quarter in all the micro markets due to continued interest of both investors and end users in this market.

Correspondingly, rental values for premium •residential properties also registered an increase in the range of 4 to 7% in almost all the micro markets, barring Golf Course Road where rentals remained stable.

The Housing and Urban development •Corporation (HUdCO) reduced interest rates by 0.50% for project loans in the housing and infrastructure categories and for individual loan under HUdCO Niwas effective April 1, 2012. For the Economically Weaker Section (EWS) housing schemes the applicable floating interest rates would be in the range of 8.50-8.75% and the applicable housing loans for lower income groups (LIG) would be 9%. For government and public sector housing projects, as well as infrastructure projects such as water supply, sewerage, solid waste management etc. the floating rate of interest would range between 11.25-11.50%.


1Q 2012 2Q 2012

RENTAl vAluE

CApITAl vAluE



GURGAON

Sohna Road & Ext

Golf Course Road

NH-8

Sushant LokdLF Phase I

80

60

40

20

0

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

1Q20

11

2Q20

11

3Q20

11

4Q20

11

2Q20

12

1Q20

12

4Q20

10

3Q20

10

18,000

16,000

14,000

2,000

0

4,000

8,000

6,000

10,000

12,000

3Q20

08

NH-8

Sushant Lok

dLF Phase I

Golf Course Road

Sohna Road & Ext

INR

per

sq ft

Golf

Cour

se R

oad

Sohn

a Ro

ad &

Ext

dLF

Phas

e I

Sush

ant L

ok

NH -

8

0

3,000

6,000

9,000

12,000

18,000

15,000

INR

per

sq ft





NOIDA

during 2Q 2012, no major under construction •projects/phases of the project witnessed completion.

This quarter a number of new projects were •launched in NOIdA including: “Aamantran” and “magnolia Park” by Eldeco Group both located at sector 119, “Garden Isles” and “Orchards” by Jaypee Group at sector 133 and 128 respectively, “Panchsheel Pratishtha” by Panchsheel Group at sector 75, “The Residence” and “Unihomes 3” by Unitech Ltd. at sector 117 and 113 respectively and “The Aranya” by Unnati Fortune Group. Asking price for all the above projects was in the range on INR 3,500- 4,900.

Capital values witnessed an increase in the •range of 3 to 7% quarter-on-quarter in almost all the premium residential sectors such as Sector 28-30, 44, 50, 92, 93 and 61-62 during the surveyed period. The primarily factor contributing to this increase in capital values is limited ready-to-move in option for premium residential properties in NOIdA. most of the under construction projects are expected to complete by end of 2013.

Similarly, prime rental values in NOIdA •increased in the range of 2 to 6% quarter-on-quarter.

The local municipal authorities have given •an In-principle approval for the NOIdA metro expansion plan till NOIdA Extension. The cost of the project is estimated to be approximately INR 1,800 crore which will be borne by the NOIdA and the Greater NOIdA Authorities.


1Q 2012 2Q 2012

RENTAl vAluE

CApITAl vAluE


NOIdA



0

2,000

4,000

6,000

8,000

10,000

Sect

or 2

8, 2

9, 3

0

Sect

or 9

2/93

Sect

or 6

1, 62

., 63

Sect

or 5

0

Sect

or 4

4

INR

per

Sq F

t

3Q20

09

0

2,000

4,000

6,000

10,000

8,000

1Q20

10

2Q20

10

3Q20

10

4Q20

09

1Q20

11

2Q20

11

3Q20

11

4Q20

10

Sector 61,62,63

Sector 28,29,30

Sector 44

Sector 92 / 93

Sector 50

INR

per

Sq F

t

Sector 50

Sector 44

Sector 28,29,30

Sector 92/93 Sector 61,62,63

40

30

20

10

0


2Q20

12

1Q20

12

4Q20

11

COllIERs REsIDEX 2Q 2012 - NOIDA

Rebase to 100

0

20

60

40

80

120

100

140

180

160

200

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

09

1Q20

10

2Q20

10

3Q20

10

NEW pROJECTs


Aamantran Sector 119 Eldeco Group 4Q 2014 4,000

Garden Isles Sector 133 Jaypee Group 4Q 2015 3,900

magnolia Park Sector 119 Eldeco Group 3Q 2014 3,500

Orchards Sector 128 Jaypee Group 1Q 2015 4,900

Panchsheel Pratishtha Sector 75 Panchsheel Group 4Q 2016 4,000

The Residence Sector 117 Unitech Ltd. 4Q 2015 4,000



COllIERs REsIDEX 2Q 2012 - ChENNAI

Rebase to 100

1Q20

08

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

09

1Q20

10

2Q20

10

3Q20

10

20

80

60

40

100

140

160

180

120




1Q 2012 2Q 2012

RENTAl vAluE

CApITAl vAluE



ChENNAI

In 2Q 2012, a number of projects/phases of •the projects were completed, including: “RC Royal Grande” by Rajarathinam constructions at Ambattur, “Pace Prana” by Jains Housing at mogappair, “Credia” by Isha Homes at medavakkam, “Parkwood” by Antony Projects at Ayappanthangal, “Jayasree” by malle Constructions at T.Nagar, “Opulence” by Golden homes at Poonamallee, “Ashvita” by Asvini builders at Siruseri and “Viviana” by Arihant builders at GST Road.

The construction activity within the residential •market remained active and several new projects were launched this quarter, mainly in suburban areas with a price range between INR 3,000 to 4,500 per sq ft.

during this quarter, both rental and capital •values of premium residential properties remained stable in all the micro markets, this is believed to be primarily due to cautious investors and end users sentiment.

The Chennai metropolitan development •Authority (CmdA) has approved construction of multi-level car parks within residential buildings; however, customers have to pay for the covered parking space; currently on an average around INR 2.5 to 5 lakh.


CHENNAI

Adyar

Anna Nagar

Nungambakkam

Boat Club

Siruseri/ kazipattur

Sholinganallur

Velachery

Alwarpet / R A Puram Beasant Nagar

T Nagar

75

60

45

30

15

0

0

5,000

10,000

20,000

25,000

15,000

3Q20

08

4Q20

08

2Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

3Q20

11

2Q20

12

1Q20

12

2Q20

11

1Q20

11

4Q20

10

3Q20

10

1Q20

08

Boat ClubBeasant Nagar

NugambakkamSiruseri/ kazipattur

Velachery

Sholinganallur

Alwarpet / R A Puram

Anna Nagar

T NagarAdyar

INR

per

sq ft

Boat

Clu

b

Nung

amba

kkam

Anna

Nag

ar

T Na

gar

Beas

ant N

agar

Adya

r

Shol

inga

nallu

r

Alw

arpe

t / R

A P

uram

Vela

cher

y

Siru

seri/

kaz

ipat

tur0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

INR

per

sq ft

NEW pROJECTs


Blessings kelambakkamCiti Lights Properties

Pvt. Ltd.4Q 2013 3,000

Horizon Residences Vadapalani Tulive developers 1Q 2014 4,500

Lumina GST road Lancor Holdings 1Q 2013 4,200

Sarvam Off Velachery S & S Foundations 1Q 2014 4,500

VGN Stafford Ambattur VGN Group 2Q 2014 3,200


4Q20

11


BENgAluRu (BANgAlORE)

during this quarter, several projects/ phases •of the projects were ready for possession, including: “Pebble Bay” by k Raheja at Sanjay Nagar, “Century Paradise” by Century developers at Bannerghatta Road, “Altura” by Jain developers at Sarjapur Road, “Vinnay Galaxy” by SmR developers at Whitefield and “moon Stone” by Sobha developers at Amruth Nagar.

Bengaluru’s residential market remained •upbeat and several prime residential projects were launched in Bellary Road, Buddigere Cross, Hebbal, Whitefield and Tumkur Road. These projects priced in the range of INR 5,350 to 7,500 per sq ft. depending on location and amenities provided in the project.

The capital values for premium residential •properties increased in the range of 6 to 8% quarter on quarter in locations like Central Bengaluru, Indiranagar, Cooke Town, Jayanagar and Palace Orchard, primarily due to limited supply. However, capital values in suburban and peripheral locations remained stable during the 2Q 2012.

Rental values for prime residential properties •remained stable in almost all the micro markets, barring Whitefield, Cooke Town and Airport Road locations where rentals witnessed an increase in the range of 5 to 8% quarter on quarter. This is due to an increase in the demand activities by mNCs corporates for their senior officials and expats working in the IT/ITeS sector.


1Q 2012 2Q 2012

RENTAl vAluE

CApITAl vAluE



0

2,000

4,000

8,000

6,000

10,000

14,000

16,000

20,000

18,000

12,000

Yela

hank

a

Whi

tefie

ld (A

ppts

)

kora

man

gala

Bann

ergh

atta

Ro

ad

Indi

rana

gar

Airp

ort R

oad

Pala

ce O

rcha

rd

Jaya

naga

r

Cook

e To

wnIN

R pe

r Sq

Ft

Cent

ral

1Q20

08

2Q20

08

3Q20

08

INR

per

Sq F

t

0

2,000

4,000

6,000

8,000

10,000

14,000

12,000

16,000

20,000

18,000

2Q20

10

4Q20

09

1Q20

10

4Q20

08

1Q20

09

2Q20

09

3Q20

09

3Q20

10

4Q20

10

1Q20

11

2Q20

11

2Q20

12

1Q20

12

4Q20

11

3Q20

11

Central

Yelahanka

koramangala

Indiranagar

Cooke Town Jayanagar

Bannerghatta Road

Palace Orchard

Airport Road

Whitefield



Palace Orchard

Jayanagar

Cooke Town

Central

Yelahanka

Whitefield (Appts)

koramangala

Bannerghatta Road Airport Road

Indiranagar

80

60

40

20

0

BENGALURU

COllIERs REsIDEX 2Q 2012 - BENgAluRu

Rebase to 100

60

70

80

90

100

110

120

140

130

1Q20

08

2Q20

08

3Q20

08

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

09

1Q20

10

2Q20

10

3Q20

10

NEW pROJECTs


1 North Hebbal divyaSree developers 4Q 2015 7,500

GoldCounty Tumkur Road Godrej Properties 4Q 2015 5,350

Glen wood Buddigere Cross Prestige Construction 2Q 2015 4,500

Latitude Bellary Road RmZ Group 4Q 2015 8,000

may Berry Whitefield Prestige Construction 2Q 2015 7,000

Napa Valley Bellary Road Nitesh Estates 4Q 2015 10,000



Rebase to 100

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

09

1Q20

10

2Q20

10

3Q20

10

COllIERs REsIDEX 2Q 2012 - KOlKATA

50

60

70

120

110

90

100

80

140

150

130

NEW pROJECTs


dream Exotica Sonarpur Jain Group 4Q 2015 2,200

Himadri Shyambazar Gini Realty 4Q 2015 5,400

magnolia City Barasat magnolia Infrastructure 4Q 2015 1,700

maya Teghoria Realtech Nirman Pvt. Ltd 4Q 2014 2,200



1Q 2012 2Q 2012

RENTAl vAluE

CApITAl vAluE





kOLkATA

Alipore

Tollygunge

PA Shah Road

Bhawanipur

New Town - Rajarhat

VIP Road

Em Bypass

Ballygunge

Salt Lake Behela

Loudon Street

40

30

20

10

0

3Q20

08

4Q20

08

2Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

1Q20

11

2Q20

10

2Q20

11

3Q20

10

3Q20

11

4Q20

10

2Q20

12

1Q20

12

4Q20

11

2,000

0

4,000

8,000

6,000

10,000

12,000

14,000

1Q20

08

Bhawanipur

Em BypassBallygunge Loudon Road

Behela

Alipore Tollygunge

P A Shah RoadNew Town - Rajarhat

VIP RoadSalt Lake

INR

per

sq ft

Bhaw

anip

ur

PA S

hah

Road

Tolly

gung

e

Loud

on S

tree

t

Behe

la

Alip

ore

Em B

ypas

s

Bally

gung

e

Salt

Lake

VIP

Road

New

Tow

n Ra

jarh

at

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

INR

per

sq ft



KOlKATA

Projects/phases of the projects that were •completed during the quarter include: “Ujjas The Condivilla” by Ambuja Realty at Lake Town, “Parvati Garden” by Parvati Resources Pvt. Ltd. at Birati, “Eden City” by Eden group at mahestala and “Sugam Sabuj” by Sugam Realty at Narendrapur.

In 2Q 2012, new projects, that were launched •including “dream Exotica” by Jain Group at Sonarpur, “maya” by Realtech Nirman Pvt. Ltd at Teghoria and “magnolia City” by magnolia Infrastructure at Barasat. All of these projects were launched in the price range of INR 1,700 – 2,200 per sq.ft. except “Himadri” at Shyambazar by Gini Realty, which was priced at INR 5,400 per sq.ft.

demand for affordable housing has started •picking up during the surveyed period. An appreciation of capital values in the range of 2 to 7% on a quarterly basis in southern, south west and central locations such as PA Shah Road, Tollygunge, Behela, Ballygunge and Rajarhat.

during this quarter, rental values remained •stable in almost all the micro markets, barring few locations such as Loudon Street and Ballygunge where rentals appreciated by 5% and Salt Lake, PA Shah Road and Tollygunge where rental values declined in the range of 3- 8% on quarterly basis.

The state government has legalized the sale •of leasehold land in the Satellite Township of Salt Lake. This will now allow the residents to buy and sell residential properties by paying transfer fees of INR 5 lakh a cottah. These Plots in Salt Lake were leased on 999-year tenure since the 1970s enabling middle-class people to settle down in the township.


magarpatta/Hadapsar

deccan/Camp/Boat Club

kalyani Nagar/Viman Nagar/kharadi

Pimpri/Chinchwad/Chakan

NIBm/Undri/kondhwa

kothrud/Bavdhan/Wajre Baner/Hinjewadi/Wakad/Pashan

30

25

15

10

5

0



1Q 2012 2Q 2012

RENTAl vAluE

CApITAl vAluE





PUNE

1Q20

09

2Q20

09

3Q20

09

4Q20

09

1Q20

10

2Q20

10

3Q20

10

2Q20

11

1Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

10

3,000

2,000

4,000

7,000

8,000

9,000

6,000

5,000

10,000

kalyani Nagar/Viman Nagar/kharadi deccan/Camp/Boat Club/Central Pune

magarpatta/Hadpsar Baner/Hinjewadi/Wakad/Pashan/Balewadi

kothrud/Bavdhan/Wajre NIBm/Undri/kondhwaIN

R pe

r sq

ft

kaly

ani N

agar

/Vi-

man

Nag

ar/k

hara

di

Bhaw

anip

ur

decc

an/C

amp/

Boat

Clu

b

Bane

r/H

inje

wad

i/W

akad

/Pas

han

mag

arpa

tta/H

adap

sar

NIBm

/Und

ri/ko

ndhw

a

koth

rud/

Bavd

han/

Waj

re

Pim

pri/C

hinc

hwad

/Ch

akan

0

2,000

4,000

6,000

8,000

10,000

INR

per

sq ft

COllIERs REsIDEX 2Q 2012 - puNE

Rebase to 100

60

70

80

90

100

110

140

130

120

4Q20

08

1Q20

09

2Q20

09

3Q20

09

4Q20

10

1Q20

11

2Q20

11

3Q20

11

2Q20

12

1Q20

12

4Q20

11

4Q20

09

1Q20

10

2Q20

10

3Q20

10

NEW pROJECTs


Alkasa mohammadwadi majestique & mantra 3Q 2014 3,400

Alpine Aura moshi Alpine Homes 4Q 2014 3,000

Audumbar Warje GPL Sankalp Associates 4Q 2014 5,000

Blue Ridge Phase-2 Tathawade Paranjape Schemes 4Q 2016 5,800

Citron Wagholi Vascon Engineers Ltd 4Q 2015 3,100

Ela The Earth Hadapsar Vascon Engineers Ltd 4Q 2013 4,650


puNE

In 2Q 2012, several premium projects were •launched in locations like Warje, NIBm Road, Hinjewadi, moshi, mohammadwadi, Chakan, Thathawade, Talegaon, Wagholi, Hadapsar and Pimple Saudagar; projects were priced in the range of INR 3,000 - 5,800 per sq. ft.

In this quarter construction activities remained •slow. No new premium residential project/phases of the project was completed in Pune this quarter.

Capital values in deccan, Camp, magarpatta •City, kalyani Nagar, Viman Nagar and kharadi have observed a marginal increase in the range of 1 to 3% quarter on quarter. All other micro markets capital values remained stable.

during 2Q 2012, rental values remained •stable in almost all the micro markets in Pune, this was primarily due to stable demand for rented housing from the expats working in the IT/ITeS and other industries in the region.

maharashtra State Road development •Corporation (mSRdC) planned to construct around 15 flyovers on the old mumbai-Pune Highway (NH-4) at an estimated cost of INR 2,600 crore. The project is expected to get complete by the end of 2017. This will improve the connectivity between the two cities and will boost the real estate activities.


INDIA | 2Q 2012 | RESIDENTIAL | SUbMARkETS

MumbaiThe high-end residential real estate markets in mumbai include malabar Hill, Altamount Road, Carmichael Road, Napean Sea Road, Breach Candy, Colaba, Cuffe Parade, Prabhadevi, Worli, Bandra, khar, Santacruz, Juhu and Powai.

DelhiThe prime residential areas in delhi are in the South region and comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan and Central delhi locations. These areas enjoy proximity to embassies, the airport and central commercial areas - Connaught Place.

GurgaonThe prime residential locations of Gurgaon include Golf Course Road, dLF Phase I, Sushant Lok and Sohna Road. The delhi- Jaipur Highway (NH-8) is also emerging as a preferred residential location owing to its proximity to the national capital.

NOIDANOIdA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and Taj Express Highway.

ChennaiThe prime residential areas in Chennai include Thiruvanmiyur, Valmiki Nagar and Besant Nagar, R.A Puram, mylapore and Adyar in South Chennai, Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, T. Nagar in Central Chennai; and Anna Nagar, kilpauk in North West Chennai.

Bengaluru (BANGALORE)The residential market of Bengaluru comprises both apartments and independent residences. Currently, high-end residential developments are mainly concentrated along the CBd, and Eastern and South precincts of the city. Recently, Northern Bengaluru has also witnessed a spree of realty activity facilitated by the new International Airport at devanhalli.

KolkataThe prime residential areas in kolkata include PA Shah Road, Tollygunge and Bhawanipur in South kolkata, Alipore and Behala in South-west kolkata, Loudon Street and Ballygunge in Central kolkata; and Salt Lake, Em Bypass and VIP Road in North kolkata.

Pune The prime residential areas in Pune include kalyani Nagar, Viman Nagar, Boat Club Road, NIBm Road, magarpatta, Hadapsar, koregaon Park. Recently, increased activities has been witnessed in Pimpri-Chinchwad, Baner-Pashan and kondhwa.

REsIDENTIAl suBMARKETs

CITY BAROMETERs

COllIERs REsIDEX

Increasing as compared to previous quarter

decreasing as compared to previous quarter

Remained stable from previous quarter

Colliers Residex represents the average secondary sale prices of high end properties. Residex has been derived by rebasing the capital values as 100 as on 1Q 2008.

Colliers International (India) provides property services to property Investors and Occupiers. We deliver customised service solutions utilising local and global knowledge in partnership with our clients via our property Investment and Occupier service lines. These service lines include - Office Services, Facility management, Project management, Residential Services, Investment Services and Valuation & Advisory Services.

www.colliers.com/india

For national residential services related queries please contact:

Poonam mahtani, National director Residential Services & knowledge Systems [email protected]: +91 22 4050 4551

Mumbai : Prabhu Raghavendra, Office director [email protected] 31/A, 3rd floor, Film Center, 68, Tardeo Road, mumbai, India - 400 034. Tel : +91 22 4050 4500, fax : +91 22 2351 4272

Delhi NCR : Ajay Rakheja, Office director [email protected]

New delhi : Statesman House, 4th Floor, Barakhamba Road, Connaught Place, New delhi, India - 110 001 Tel : +91 11 4360 7500 - 23, fax : +91 11 2335 6624

Gurgaon : Technopolis Building, 1st floor, dLF Golf Course main Road, Sector 54, Gurgaon, India - 122 002 Tel : +91 124 437 5807, fax : +91 124 437 5806

Bengaluru : Goutam Chakraborthy, Office director [email protected] Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru, India - 560 042 Tel : +91 80 4079 5500, fax : +91 80 4112 3131

Pune : Suresh Castellino, Office director [email protected] Hotel Le meridian, 101, R.B.m. Road, Pune, India - 411 001 Tel : +91 20 4120 6438, fax : +91 20 4120 6434

Chennai : kaushik Reddy, Office director [email protected] Heavitree Complex, Unit 1C, 1st floor, 23, Spurtank Road, Chetpet, Chennai, India - 600 031 Tel : +91 44 2836 1064, fax : +91 44 2836 1377

Kolkata : Soumya mukherjee , Office director [email protected] Infinity Business Centre, Infinity Benchmark, Room No 13, Level 18, Plot G - 1, Block EP & GP, Salt Lake Sector V, kolkata - 700 091 West Bengal, India Tel : +91 33 2357 6501 , fax : +91 33 2357 6502

This book is printed on 100% Recyclable paper

INDIA | 2Q 2012


AUTHORS

Amit Oberoi MRICSNational director, Valuation & Advisory; ResearchEmail: [email protected]

Surabhi Arora MRICSAssociate director, ResearchEmail: [email protected]

Sachin SharmaAssistant manager, ResearchEmail: [email protected]

Heliana ManoAssistant manager, Research Email: [email protected]

For general queries and feedback :[email protected] Tel: +91 124 456 7580

This report and other research materials may be found on our website at www.colliers.com/India. Questions related to information herein should be directed to the Research department at the number indicated above. This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.

© Copyright 2012 - 2013 All Rights Reserved.

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Recent Reports : GLOBAL RETAIL INdIA OFFICE INdIA RESIdENTIAL APAC OFFICE GLOBAL OFFICE INdIA BUdGET 2012-13

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Residential Property Market OverviewINDIA

QUARTERLY UPDATE | MAY | 2012

ASIA PACIFICOFFICE MARKET OVERVIEW1Q 2012


HIGHLIGHTSGLOBAL OFFICE

WWW.COLLIERS.COM

SECOND HALF 2011 | OFFICE

JAMES COOK Director of Research | USA

Global Office Trend ForecastGlobal office vacancies will continue their decline, due to steady demand and low levels of new construction in North America and Europe. The “flight to quality” trend will continue in many major markets, with occupiers trading up to higher-quality space or a better location as their leases expire.The European sovereign debt crisis will likely push the Eurozone into a mild recession in early 2012. This contraction will be felt most profoundly in a handful of commercial property markets within the most troubled nations.

Economic prospects in the Eurozone have slightly reduced overall positive global expectations for market performance in 2012. We expect continuing modest demand for office space, with most cities seeing a drop in vacancy rates. But global averages do not speak to the nuances of individual markets, and—while we expect positive absorption due to business growth and expansion in the United States, China and Australia—some Eurozone countries may see negative absorption and increased vacancy as the region enters a mild recession.

Global Office Demand Growth Slow and Steady

GLOBAL CAPITALIZATION RATES /PRIME YIELDS: 10 LOWEST CITIES

MARKET (Ranked byDec 2011)

DEC 2011

JUNE 2011

DEC 2010

Taipei �.�� .�� .�� Hong Kong �.�� .�� .�� Vienna �.�� .�� .�� London – West End �.�� .�� .�� Zurich �.�� .�� .�� Singapore �.�� .�� .�� Geneva �.�� .�� .�� Beijing �.�� .�� .��Paris �.�� .�� .��Munich �.�� .�� .��Tokyo �.�� .�� .��

GLOBAL OFFICE OCCUPANCY COSTS:TOP 10 CITIES

MARKET (Ranked byDec 2011)

DEC 2011

JUNE 2011

DEC 2010

Hong Kong ��.�� .�� .�� London – West End ��.�� .�� .�� Paris ��.�� .�� .�� Rio de Janeiro ��.�� .�� .�� Moscow ��.�� .�� .�� London – City ��.�� .�� .�� Perth ��.�� .�� .�� Singapore ��.�� .�� .�� Geneva ��.�� .�� .�� São Paulo ��.�� .�� .��

CBD CAP RATE (%)

Latin America Boasts the Tightest Office MarketsSome of the world’s lowest office vacancy rates are found in Latin American cities. Santiago, Chile; Rio de Janeiro, Brazil; São Paulo, Brazil; and Lima, Peru all have vacancy rates below three percent, resulting in a market that strongly favors landlords, prompts new construction and might squeeze some tenants that desire to expand. For the most part, we expect the strength of these markets to persist. While decreases in European demand for its commodities will likely hurt Latin America, this will be tempered by continued demand from China. In São Paolo, heightened demand has spurred the highest rates of new development in the region, which will eventually put downward pressure on asking rents.

Select Asia Pacific Markets See Big Vacancy DropsThe global trend in dropping vacancy rates should be evi-dent in Asia and continue through 2012. Markets that saw a drop in vacancy in the second half of 2011 outnumbered by a two-to-one margin those where vacancy increased.

Of the world’s most populous markets, those with the most significant declines in six-month vacancy rates were nearly all in the Asia Pacific region. Chengdu, propelled by its strong manufacturing sector, saw its vacancy rate drop by 7.8 percent in the period, and Shanghai saw a 3.2 percent drop in vacancy.

Two other large Asian markets saw vacancy rates drop by 1.5 percent or more: Jakarta, which has also seen sustained growth in CBD rental rates and renewed global investor interest; and Singapore, where occupancies are expected to stabilize.

Marquee Markets See Rent DeclineWhile Hong Kong, London’s West End and Paris command the top three highest asking rents for Class A office space,

each has shown apparent decline in rents between June and December of 2011, when quoted in U.S. dollars. Substantial declines, in fact: led by a $10.87 USD drop in Parisian Class A rents.

But how significant are these figures? The change in London and Paris rents is due to the strengthening dollar relative to the euro and pound sterling. In local currency, prime rents in these markets are holding ground. Although smaller, the decline in Hong Kong of $7.56 USD ($5.10 HKD) per square foot may be a more important indicator of things to come, as demand from the banking and financial sector continue to weaken.

EMEA and Asia Pacific Lead Global ConstructionA significant percentage of the office space under construction is in Europe, the Middle East and Africa (EMEA), and much of that is occurring in Moscow and Dubai. While both of these markets should expect strong economic growth in 2012, the fact that Dubai—with a vacancy rate of 50 percent—is constructing at such a pace leads us to expect that supply will continue to outpace demand in that market.

The other two top markets for office construction are in the Asia Pacific region. Guangzhou—China’s leading commercial port city—and Tokyo have 19.6 and 15.6 million square feet under construction respectively. Asian economic growth rates will remain strong in the coming months, with China and India leading the pack. Rents are on the rise in most cities in the region. However, dropping rents in Seoul and Hong Kong are a potential indicator of global economic uncertainty. In Tokyo, where new supply has been increasing for the past three years, we expect construction to peak and begin to decline in the coming year.

CLASS A / NET RENT (USD/SQ FT)

www.colliers.com/india

Budget Highlights | Real Estate

Finance Minister Pranab Mukherjee started his budget speech 2012-13 in the backdrop of challenging macroeconomic scenario. The finance minister projects the economy to grow by 7.6% in the next fiscal up from 6.9% in 2011-12. He mentioned that due to adverse global economic sentiments there has been a slowdown in the Indian Economy but the fact is India still remains among the front runners in the economic growth in any cross country comparison. The budget aims at faster, sustainable and more inclusive growth across sectors emphasizing on five focus areas including revival of domestic consumption, rapid revival of high growth in private investment, removal of supply bottlenecks, addressing malnutrition in 200 high burden districts and expedite improvement in delivery system, governance and transparency.

From a real estate perspective, the budget remained silent on most of the major issues including status of STPIs (Software Technology Parks of India), Real Estate Regulatory Bill, Land Bill etc. however, it mentioned that efforts are on to arrive at a political consensus on the issue of allowing 51% Foreign Direct Investment (FDI) in multi-brand retail.

THE KEY HIGHLIGHTS OF THE BUDGET WHICH MAY IMPACT REAL ESTATE SECTOR ARE AS FOLLOWS:

- External Commercial Borrowings (ECB) for low cost affordable housing projects. Impact: Real estate companies developing large affordable housing projects with large fund requirements will benefit the most from the easing of external commercial borrowing (ECB) norms as interest rate charged is lower in case of external borrowings in comparison to rates charged by domestic institutions.

- Increase in provision under Rural Housing Fund to INR 4,000 crore from the existing INR 3,000 crore.Impact: It will provide housing finance to targeted groups in rural areas at competitive rates.

- Extension of the existing scheme of interest subvention of 1% on housing loans up to INR 15 lakh where the cost of the house does not exceed INR 25 lakh for another year. Impact: This will boost the affordable housing segment by providing cheaper loan to the end users.

MARKET REACTION TO BUDGET

Q1 2012 | RESEARCH

Source: www.bseindia.com | Mar 16, 2012

Company Change (%)BSE SENSEX -1.19Realty Index -1.26Anant Raj Inds -6.04D B Realty -2.02DLF 0.15Godrej Properties -2.82HDIL -5.21Hubtown Ltd. -4.13Indiabulls Real Estate -1.95Mahindra Lifespaces -0.72Orbit Corp. -3.37Parsvnath Developers -4.04Peninsula Land -3.18Phoenix Mills -2.65Sobha Developers 3.04Sunteck Realty -1.13Unitech -1.68

UNION BUDGET 2012 -13

A SNEAK PREVIEW

P. 1 | COLLIERS INTERNATIONAL

STREET/PRECINCTRENT

(USD)**

ANNUAL CHANGE

(%)

New York – Fifth Avenue ��,�� .�

Hong Kong – Queen's Road Central, Central (tie)

��,�� .�

Hong Kong – Canton Road (tie)

��,�� .�

London – Old Bond St.*** ��,�� .�

Paris – Avenue des*** Champs-Élysées

��,�� flat

Hong Kong - Causeway Bay

��,�� .�

New York – Madison Avenue

�� .�

Zurich – Bahnhofstrasse �� flat

Milan – Via Monte Napoleone

�� (�.�)

Sydney – Pitt Street Mall �� (��.�)

HIGHLIGHTSGLOBAL

www.colliers.com

MID-YEAR 2012 | RETAIL

ANN T. NATUNEWICZ Manager | Retail Research | USA

Colliers’ 2012 Global Retail Streets survey found that of 129 locations tracked, 51 posted higher year over year average rental rates, 49 were flat, and 24 were down (5 lacked comparable data).

Retailers entering new markets—both developed and developing—continue to hedge risk by targeting the same one or two premier locations, generating heated competition and outsized rental rate growth in a handful of space-constrained corridors.

Companies with the most ambitious long-term expansion plans remain focused on emerging markets with rapidly growing middle-class populations, but recently institutional capital has pulled back somewhat to favor core markets and investments.

While economic and political turmoil did affect rental rates in headline-generating markets (such as Cairo and Athens), high streets with strong fundamentals remained remarkably resilient, suggest-ing, at least for now, some separation between macroeconomic issues and underlying real estate fundamentals.

Since we conducted our survey, however, weakening consumer sentiment among affluent shoppers has already begun to impact retailers’ revenues and could hinder landlords’ near-term ability to raise rents, suggesting flattening growth rates for the coming year.

This spring proved to be a tricky time to conduct global benchmarking, as market sentiment has deteriorated markedly since April. During the past year, virtually every entity making a forecast—including Colliers in our 2012 U.S. Retail Outlook—included a caveat related to not-yet-quantifiable global fallout from Europe’s fiscal issues. As the past few months have illustrated, the time to face Eurozone issues has finally arrived, spawning a new wave of financial uncertainty.

More than two years post-recession, though, results from our annual survey of High Street rents illustrate that the world’s priciest retail corridors continue to attract the most sought-after tenants at lofty rental rates. Eight of Colliers’ top ten Global Retail Streets in 2011 made the list again this year. The big story, however, lies with the explosive year over year rental growth achieved in a handful of markets. Six of our Top 10 grew at double-digit levels year over year in local currency units, five of them by more than 20%.

At a regional level, streets in areas that entered 2007-08 better-positioned economically—Australia, Canada, parts of Eastern Europe—had a higher percentage of this year's flat-to-higher rents than those slower to emerge from the recession. We will be watching these areas closely. Even as they represent some of the most attractive destinations for expansion-minded companies and yield-seeking investors, they too are vulnerable to softening consumer demand and, for those with reliable data, encroachment of e-commerce.

This report contains two parts. The first summarizes the results of our annual Global Retail Streets survey, conducted in April 2012. The second incorporates content from Colliers’ brokerage and research teams worldwide who contributed market operational metrics, nuanced commentary on retail conditions, and forward-looking opinions on what the next year will hold for consumers, landlords, and investors.

Record Rents for Top Retail Corridors; Global Slowdown Impacts Momentum Elsewhere

TOP 10 GLOBAL RETAIL STREETS*(USD PER SQUARE FOOT PER YEAR)

REGIONAL RETAIL RESEARCH CONTACTS

AMERICAS> Ann T. [email protected]

EUROPE/MIDDLE EAST/AFRICA> Zuzanna [email protected]

ASIA> Simon [email protected]

AUSTRALIA/NEW ZEALAND> Nora [email protected]

Source: Colliers International* selected cities** exchange rate as of March 31, 2012*** Zone A rents