India Residential Property Market Overview November 2013

Residential Property Market Overview INDIA QUARTERLY UPDATE | NOVEMBER | 2013

Accelerating success.

INDIA | NOVEMBER 2013 | RESIDENTIAL

RESEARCH SYDNEY CENTRAL & FORECAST BUSINESS REPORT DISTRICT

RESEARCH INDIA RESIDE RESIDENTIAL & FORECAS FNTIAL ORECAST MARKET T REPORT REPORT

MACRO ECONOMIC OVERVIEW •

•

•

ECONOMIC BAROMETER Oct-12

Oct-13

REPO RATE

8.00%

7.50%

REVERSE REPO RATE

7.00%

6.50%

CRR

4.25%

4.00%

INFLATION

7.32%

7.00%

10.00%

10.10%

1

HOME LOAN RATE

•

•

GDP growth estimates for the period that lasted from April to June 2013 were around 4.4%. This was the slowest growth rate recorded recorded in the last four years. Based on the wholesale price index, the headline inflation of October 2013 was at 7.00%, which marked an increase over the 6.46% 6.46% headline inflation of September 2013. The Reserve Bank of India (RBI) increased the Repo Rate and Reverse Repo Rate by 25 basis points to 7.50 and 6.50 respectively. The Indian Rupee plunged further compared to the US Dollar and the Euro in the quarter that spanned from July to October 2013 and closed at INR 61.07 against the US Dollar on 31st October 2013. Demand for residential units in both the primary and secondary markets remained subdued. Pressures of increasing unsold inventory and a liquidity crunch resulted in fewer project launches. There was an increase in the incentives being offered to sell property, such as easy payment plans, discounts and free gifts with bookings. COLLIERS VIEW: End Users and buyers will continue to be cautious due to the current uncertain economic and political conditions; coupled with high residential prices. Capital values across most micro-markets in almost all the major cities will remain stable, even though transaction volume will remain constraint. Importantly, the current oversupply in the market will get mitigated in the coming quarters, as very limited new projects are being launched.

ECONOMIC INDICATORS RETURN ON ALTERNATIVE INVESTMENTS 12.0

Oct-12

Oct-13

YoY % Change

GOLD

30,922

30,063

-2.78%

SILVER

59,853

45,917

-23.28%

11.0 10.0 9.0 8.0

FIXED DEPOSIT

2

EQUITY

8.50%

9.00%

5.58%

18,714

20,548

9.80%

7.0 e g a t n e c r e P n I

6.0 5.0 4.0

REALTY INDEX

3

1,879

1,328

-29.33%

3.0 2.0 1.0 0.0

1

SBI Home Loan Rate for Loan upto INR 30 Lakhs SBI Fixed Deposit rate for a period of more than one year and amount below INR 1 Crore 3 Realty Index is a free float weighted index, comprised of real estate development companies in the BSE-500 Index. 2

-1.0 -2.0

8 0 ‘ r p A

8 8 0 0 ’ ’ n g u u A j

8 0 ‘ t c O

8 0 ’ c e D

9 0 ‘ b e F

9 9 0 ‘ 0 ‘ r n p u A J

9 0 ‘ g u A

9 0 ‘ t c O

9 0 ‘ c e D

0 1 ‘ b e F

0 1 ‘ r p A

0 1 ‘ n u J

0 1 ‘ g u A

Repo Rate

Source: Goverment of India, Colliers International India Research

www.colliers.com

0 1 0 1 ‘ ‘ t c c e O D

1 1 ‘ b e F

1 1 ‘ r p A

1 1 ‘ n u J

1 1 ‘ g u A

C as as h R es es er er ve ve Ra Ra titi o

1 1 1 1 ‘ t ‘ c c e O D

2 1 ‘ b e F

2 1 ‘ r p A

2 1 ‘ n u J

W ho ho le sa sa le Pr Pr ic e I nd nd ex ex

2 1 ‘ g u A

2 1 ‘ t c O

2 1 ‘ c e D

3 1 ‘ b e F

3 1 ‘ r p A

3 1 3 1 ‘ ‘ n g u u J A

3 1 ‘ t c O


MUMBAI

AVERAGE CAPITAL VALUE RANGE 80,000

•

Mumbai’s residential property market witnessed low transaction volumes, despite the expected demand boost due to the festive season. This is attributed to various reasons, such as high price tags, making most projects unaffordable and Reserve Bank of India’s directive to discontinue the popular 80:20 financing scheme.

70,000 60,000 . t f . q s 50,000 r e p R N 40,000 I

30,000 20,000 10,000 0

•

MUMBAI

CITY RESIDENTIAL BAROMETER

i a b m u M h t u o S

The launch of new projects remained limited. Only a few premium projects were launched in locations, such as Prabhadevi, Wadala and Worli. These projects were priced in the range of INR18,000 - 45,000 per sq ft. Due to lack of capital, most of the residential projects in the luxury sector have been significantly delayed.

i l r o

i v e d a h b a r P

W

r a h K

a r d n a B

Malabar Hill, Altamount Road, Carmichael Road

200

4Q 2013F

Breach Candy, Napeansea Road, Peddar Road

150 •

Capital Value Rental Value New Project Construction Pace

The average rental values across the city did not change during the quarter. Similarly, capital values also remained unchanged in most of the city’s micro markets, except in a few of West Mumbai’s precincts where marginal increases in the range of 1 - 3% QoQ were recorded.

Colaba, Cuffe Parade

50 0 Worli

Juhu

Prabhadevi

Santacruz •

Ongoing Price (P.S.F)

Thane-Kalyan

4,000 - 8,000

Navi Mumbai

3,500 - 7,500

Virar- Boisar

100

Andheri

h t n o m r e p . t f . q s r e p R N I

INVESTMENT OPPORTUNITIES Micro Market

i r e h d n A

AVERAGE RENTAL VALUE

Powai

3Q 2013

i a w o P

z u r c a t n a S

u h u J

3,000 - 5,500

Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft.

COLLIERS VIEW: During the next few quarters, the city’s residential markets are expected to remain stagnant due to low liquidity and high price points. Absorption in the luxury segment will remain under pressure. The pre-launches in the mid and low end segment will continue to have traction at the introductory prices. The recent hike in the floor space index of 3 for the redevelopment of cessed buildings is expected to boost the city’s redevelopment projects to some extent and improve the overall supply situation over the long term. Overall capital values in the primary and secondary sales markets are expected to be under pressure in the short to medium term.

Bandra

Khar

AVERAGE CAPITAL VALUE TRENDS 80,000 70,000 60,000 50,000 . t f . q s r40,000 e P R N I

30,000

20,000 10,000 0

8 0 0 2 Q 1

9 0 0 2 Q 1

8 0 0 2 Q 3

9 0 0 2 Q 3

0 1 0 2 Q 1

0 1 0 2 Q 3

1 1 0 2 Q 1

1 1 0 2 Q 3

2 1 0 2 Q 1

2 1 0 2 Q 3

3 1 0 2 Q 1

3 1 0 2 Q 3

F 4 1 0 2 Q 1

F 4 1 0 2 Q 3

Powai

Colaba, Cuffe Parade

Andheri

Khar

Bandra

Worli

Prabhadevi

Juhu

Santacruz

Breach Candy, Napeansea Road, Peddar Road

Malabar Hill, Altamount Road, Carmichael Road

Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.ft. basis.

SELECT NEW PROJECTS

PROJECT NAME

LO C AT I O N

D E V ELOPE R N A M E

Bay One

Prabhadevi

Hubtown Ltd.

4Q 2017

45,000

New Cuffe Parade Codename Metropolis

Wadala

Lodha Group

4Q 2015

18,700

Princess

Prabhadevi

Sumer Group

4Q 2016

27,000

The Park

Worli

Lodha Group

4Q 2017

24,470

Sapphire

Powai

Sai Group of Industries

4Q 2015

10,500

T E N TAT I V E PO S S ES S I ON *

RAT E ( PE R S Q . F T. ) * *

Note: * As mentioned by developer ** Base selling price as quoted by developer

COLLIERS INTERNATIONAL |

P. 3


DELHI


•

Demand in the secondary sales market for premium residential properties have come down significantly this quarter, however due to the continual interest of expatriates and HNI’s in the prime locations of South and Central Delhi, the demand for leasing remained stable for premium properties.

105,000 90,000 . t f . q s r e p

75,000

R N I

60,000 45,000 30,000 15,000

•

DELHI

•

CITY RESIDENTIAL BAROMETER 3Q 2013

4Q 2013F

The new supply remained limited and primarily in the form of small redevelopment projects projects in areas, such as Vasant Vihar, Anand Niketan and Safdarjung Enclave.

•

New Project Construction Pace

, d d a a o o R R j b a r e i z v g h n t i a r r P u A

Due to the decisions of a number of MNCs / Embassies to attempt to contain their costs in the wake of the current economic scenario, rental values declined by 5 - 14% across the micro markets.

Capital Value Rental Value

0

There is a downward pressure on capital values as the asking price for prime residential properties in Delhi has come down by approximately 10 - 15%. However, not many deals have been concluded in the market.

, r h a g a g a B N r o r e J d , s n k u n S i L f l o G

i r u P a y k a n a h C

, n d a n t e e t s k i e N W i t n a h S

, r n a a i h t e V k i t N n d a s n a a n V A

, y h n g o a l o B C i s n a d r n a e h i r a F M

, k A o D l d S n , a h n g A a , B a i l t i i h N s a h c n a P

AVERAGE RENTAL VALUE Prithviraj Road, Aurangzeb Road

200 Anand Niketan, Vasant Vihar

160

Chanakya Puri

120 80

h t n o m r e p . t f . q s r e p R N I

40 Golf Links, Jor Bagh, Sunder Nagar

0

Greater Kailash I & II, South Extension

ShantiNiketan, Westend

Friends Colony, Colony, Maharani Bagh •

A number of infrastructur inf rastructural al projects are taking place in the city simultaneously and causing traffic problems in select locations. This may cause the leasing demand to temporarily shift from these areas to other locales.

h h n s t o u i a o l s i n a S e K I , t r I x e & E t a I e r G

Panchashila, Anandlok, Niti Bagh, SDA

AVERAGE CAPITAL VALUE TRENDS 100,000 90,000

•

COLLIERS VIEW: Currently, Investors are holding for their decisions due to economic and political uncertainties. The activity in premium residential market will remain sluggish till the election. However, considering the fact that Delhi’s lease market is primarily driven by the officials of MNCs and expatriates that are currently trying to optimize their costs, rental values may further decline.

80,000 70,000 60,000

. t f . q s 50,000 r e P R 40,000 N I

30,000 20,000 10,000 0

8 0 0 2 Q 1

8 0 0 2 Q 3

9 0 0 2 Q 1

9 0 0 2 Q 3

0 1 0 2 Q 1

0 1 0 2 Q 3

1 1 0 2 Q 1

1 1 0 2 Q 3

2 1 0 2 Q 1

3 1 0 2 Q 1

2 1 0 2 Q 3

3 1 0 2 Q 3

F 4 1 0 2 Q 1

F 4 1 0 2 Q 3

Golf Links, Jor Bagh, Sunder Nagar

Prithviraj Road, Aurangzeb Road

Chanakya Puri

Shanti Niketan, Westend

Panchashila, Anandlok, Niti Bagh, SDA

Friends Colony, Maharani Bagh

Greater Kailash I & II, South Extension

Anand Niketan, Vasant Vihar

Note: Average Capital/Rental Value Range: Indicative asking price for premium residential properties on per sq.f t. basis.

SELECT ONGOING PROJECTS

PROJECT NAME

LO C AT I O N


Capital Greens

Shivaji Marg

DLF Ltd.

2Q 2015

14,000

Castlewood

Okh l a

Indiabulls Ltd.

4Q 2013

12,800

Kings Court

Greater Kailash- II

DLF Ltd.

1Q 2015

36,000

Queens Court

Greater Kailash- II

DLF Ltd.

1Q 2015

36,000

Winter Hills

Dwaraka Morh

Umang Realtech

4Q 2013

10,250


RAT E ( PE R S Q . F T. ) * *


P. 4

| COLLIERS INTERNATIONAL


GURGAON


•

Gurgaon’s residential market remained stagnant for a second consecutive quarter. Sales volumes have reduced significantly, primarily because investors aren’t purchasing. However, the market continues to see robust demand for projects close to completion.

40,000 35,000 . 30,000 t f . q s r e p 25,000 R N I

20,000 15,000 10,000

•

GURGAON


4Q 2013F

•

Capital Value Rental Value New Project Construction Pace

INVESTMENT OPPORTUNITIES Micro Market


Golf Course Extension Road

7,500 - 9,000

Sohna Region

4,000 - 5,000

Pataudi Road

4,500 - 5,500

New Gurgaon

4,000 - 5,000

At the end of the quarter, with the start of the festive season, developers made lucrative offers to purchasers of residential real estate to revive demand. The various offers made by developers include deferred payment plans and waived charges on amenities such as free car parking, power back-up, club membership and freebies, such as microwave ovens, LCD TVs and washing machines, etc. During 3Q 2013, two premium projects / parts of projects were launched in Gurgaon – DLF Camelias on Golf Course Road and Microtek Green Burg, by Microtek – which were priced at INR25,000 per sq ft and INR16,950 per sq ft, respectively. A few more affordable projects were launched in the recently notified Sohna region in the price range of INR 4,000 - 5,000 per sq ft. Construction activity was slow and resulted in the completion of only a few premium residential projects / phases of projects, such as Spaze Privy, a property developed by the Spaze Group at Sector 72.

5,000 0

d a o R e s r u o C f l o G

I e s a h P F L D

t x E & d a o R a n h o S

k o L t n a h s u S

8 H N

AVERAGE RENTAL VALUE Golf Course Road

80 60 40

h t n o

m r e p . t f . q s r e p

NH - 8

Sohna Road & Ext

20 0

R N I

Sushant Lok

DLF Phase I

AVERAGE CAPITAL VALUE TRENDS 18,000 16,000

•


The capital values of prime residential properties declined marginally by 1 - 3% QoQ in almost every micro market. However, they remained stable in a few locations, such as Sushant Lok and NH-8.

14,000 12,000 . 10,000 t f . q s r 8,000 e P R N I

6,000 •

COLLIERS VIEW: End-users activity is expected to remain restricted primarily due to high price points and relatively very less options available for mid-segment housing. Looking ahead, we expect demand for prime residential properties to remain stable. Capital and rental values both will remain under pressure and may decline by 2-4% in near term across all the micro markets.

4,000 2,000 0

8 0 0 2 Q 3

9 0 0 2 Q 1

9 0 0 2 Q 3

0 1 0 2 Q 1

0 1 0 2 Q 3

1 1 0 2 Q 1

1 1 0 2 Q 3

2 1 0 2 Q 1

2 1 0 2 Q 3

NH-8

Sohna Road & Ext

Golf Course Road

Sushant Lok

3 1 0 2 Q 1

3 1 0 2 Q 3

F 4 1 0 2 Q 1

F 4 1 0 2 Q 3

DLF Phase I


SELECT NEW PROJECTS

PROJECT NAME

LO C AT I O N


DLF Camelias

Golf Course Road

DLF Ltd.

4Q 2018

25,000

Isle De Royale

Gwal Pahadi

ASF Group

4Q 2017

6,500

M3M Escala

S e c to r 7 0 A

M3M

4Q 2017

6,250

Microtek Green Burg

S e c to r 8 6

Microtek

4Q 2017

6,950

Tangerine

Sector 89A

ATS Group

4Q 2017

6,750


RAT E ( PE R S Q . F T. ) * *


COLLIERS INTERNAT INTERNATIONAL IONAL |

P. 5


NOIDA


•

•

NOIDA

CITY RESIDENTIAL BAROMETER 3Q 2013 Capital Value Rental Value New Project Construction Pace

•

INVESTMENT OPPORTUNITIES Ongoing Price (P.S.F)

NOIDA Expressway

4,000 - 7,000 •

Sector 71 to 83

10,500 9,000 . t f . q s r e p

7,500

R N I

6,000 4,500 3,000 1,500 0

A number of developers offered various giveaways such as gold coins and electronic gadgets, subvention in the EMI, special cash discounts, free car parking, power backups, etc. to attract customers. Customers responded well to these offers and the market witnessed marginal increase in sales activity.

3 9 / 2 9 r o t c e S

4 4 r o t c e S

4,500 - 5,500


The city did not witness any major completions this quarter as those projects scheduled to complete this quarter were delayed until early 2014.

0 3 , 9 2 , 8 2 r o t c e S

AVERAGE RENTAL VALUE Sector 44

40 30 h t n o m r e p . t f . q s r e p R N I

20 Sector 28, 29, 30

Sector 50

10 0

Despite a revival in demand, overall capital and rental values remained stable due to the high stock level. However, projects nearing completion witnessed a 5-10% increase in capital values due to high-end user demand. COLLIERS VIEW: The market is expecting the completion of various projects that were launched during 2009-2010 and which have already been delayed from 1-2 years. This additional supply will keep rental values stable. Capital values will also remain stable across all the micro markets although projects nearing completion may see marginal increases.

3 6 , . 2 6 , 1 6 r o t c e S

0 5 r o t c e S

4Q 2013F •

Micro Market

The NOIDA residential market witnessed comparatively fewer launches in 3Q 2013 than in the previous two quarters and the higher cost of debt d ebt compelled over-leveraged developers to try to liquidate their land-banks and existing projects. As a result, developers refrained from launching new projects and concentrated on selling their unsold stock.

Sector 92/93

Sector 61, 62., 63

AVERAGE CAPITAL VALUE TRENDS 12,000 10,500 9,000 7,500 . t f . q s r e P R N I

6,000 4,500 3,000 1.500 0

9 0 0 2 Q 3

0 1 0 2 Q 1

0 1 0 2 Q 3

1 1 0 2 Q 1

1 1 0 2 Q 3

2 1 0 2 Q 1

2 1 0 2 Q 3

Sector 61,62,63

Sector 50

Sector 92 / 93

Sector 28,29,30

3 1 0 2 Q 1

3 1 0 2 Q 3

F 4 1 0 2 Q 1

F 4 1 0 2 Q 3

Sector 44


SELECT NEW PROJECTS

PROJECT NAME

LO C AT I O N


Antriksh Aralias

Sector 150

Antriksh Group

4Q 2016

4,700

The Downtown

S e c to r 9 8

Sikka Group

4Q 2015

18,415 - 18,610

Mirabella

Sector 79

Mahagun Group

4Q 2016

4,650

Saha Amadeas

Sector 143

Saha Group

4Q 2016

6,500

Wave Livork

Sector 32

Wave Group

4Q 2017

8,850


RAT E ( PE R S Q . F T. ) * *


P. 6



CHENNAI


•

•

CHENNAI


4Q 2013F

Capital Value Rental Value New Project

In 3Q 2013, numerous new projects were launched in the city. Locations, including R.A. Puram, Nungambakkam, Poonamallee, R.K. Salai, Moolakadai, Ambattur, Kovur and Polivakkam, had the largest number of new launches. Most of these projects were priced in the range of INR3,950 - 4,900 per sq ft. The premium projects that were launched in these areas had prices in the range of INR18,500 23,000 per sq ft.

34,000 30,000 . t f . 26,000 q s r e p

22,000

R N I

18,000 14,000 10,000 6,000 2,000

/ m t a e r p r u a P w A l A R

b u l C t a o B

t r n a a g s a a e N B

r a y d A

m a k k a b m a g n u N

r a g a N a n n A

r a g a N T

•


Velachery

5,000 - 7,000

Sholinganallur

3,500 - 4,200

Siruseri/ Kazipattur

3,000 - 4,000

Kelambakkam

3,000 - 4,000

r / i u r t e t s a p u i r i z S a K

r u l l a n a g n i l o h S

y r e h c a l e V

AVERAGE RENTAL VALUE Boat Club

75 Siruseri/Kazipattur

Nungambakkam

60 45

h t n o

30

Sholinganallur

Anna Nagar


15 0

R N I

Construction Pace

Micro Market

During the quarter, increased traction was witnessed in Chennai’s residential market. The demand for premium and mid-segment projects remained upbeat. Due to the area’s proximity to the Anna Nagar & Chennai bypass road, a lot of investment activity was witnessed in Kolathur in North Chennai. Moreover, the completion of the Perambur flyover helped to improve the access to this emerging location.

Adyar

Velachery

The average capital and rental values of the prime residential market increased by 2 - 9% QoQ. However, as buyer sentiment remained subdued in response to the prevailing high mortgage rates, the capital values of midrange properties remained stable during the quarter.

Alwarpet / R A Puram

Beasant Nagar T Nagar

AVERAGE CAPITAL VALUE TRENDS 25,000

•


•

The State Government imposed an additional charge of 2% on registration and made it mandatory that construction agreements signed between builders and buyers be registered. Currently, the buyer of a new apartment that is under construction must pay 8% (5% stamp duty, 2% surcharge and 1% registration fee) to register the property. COLLIERS VIEW: Adequate growth has been observed in the premium residential market over the last few quarters. Considering the upright demand from end users and investors, capital and rental values are expected to increase by 2 - 5% in the near term.

21,000

17,000

13,000 . t f . q s r e P R N I

9,000

5,000

1,000

8 0 0 2 Q 1

8 0 0 2 Q 3

9 0 0 2 Q 1

9 0 0 2 Q 3

0 1 0 2 Q 1

0 1 0 2 Q 3

1 1 0 2 Q 1

1 1 0 2 Q 3

2 1 0 2 Q 1

2 1 0 2 Q 3

F 3 1 0 2 Q 1

F 3 1 0 2 Q 3

F 4 1 0 2 Q 1

F 4 1 0 2 Q 3

T Nagar

Boat Club

Alwarpet / R A Puram

Sholinganallur

Beasant Nagar

Adyar

Siruseri/ Kazipattur

Nugambakkam

Anna Nagar

Velachery


SELECT NEW PROJECTS

PROJECT NAME

LO C AT I O N


Imperia

Nungambakkam

Adroit Urban Developers

4Q 2014

23,000

Ingai

Poonamallee

Vasavi Housing & Infrastructure

4Q 2015

3,950

Lalique

R.A.Puram

ETA Star Property Developers

4Q 2015

1 8, 5 0 0

Navarathina

Ambattur

Barath Building Construction

4Q 2015

4,200

Republic

Kovur

Akshaya Homes

4Q 2016

4,250

Whiteberry

Moolakadai

Navin Housing & Properties

4Q 2015

4,900


R AT E ( PE R S Q . F T. ) * *



P. 7


BENGALURU (BANGALORE)


•

The Bengaluru residential market recorded increased transaction volumes in both primary and secondary markets. High demand has been observed in the mid-segment residential projects from the IT/ITeS workforce. The micro-markets, which attracted significant interest from buyers were Outer Ring Road (ORR), Whitefield, Jakkur and Koramangala.

28,000

24,000 . t f . q s r e p

20,000

R N I

16,000 12,000 8,000

4,000 0

•

BENGALURU


4Q 2013F

l a r t n e C

A few national-level developers such as Puravankara Projects Ltd, Nitesh Estates, Sobha Developers, Raffles Residency, Unishire and LGCL. Developers launched their new projects in micro-markets like Sarjapur, Whitefield, Kanakapura, Thanisandra and Yemalur. Projects were launched in the price range of INR4,000 to 8,000 per sq ft.

r a g a n a r i d n I

d r a h c r O e c a l a P

a l a g n a m a r o K

r a g a n a y a J

n w o T e k o o C

d l e fi e t i h W

d a o R t r o p r i A

d a o R t r o p r i A

d a o R a t t a h g r e n n a B

a k n a h a l e Y

AVERAGE RENTAL VALUE Central

80 Yelahanka

Cooke Town

60 40

Capital Value

•

Rental Value New Project Construction Pace

INVESTMENT OPPORTUNITIES

•

Micro Market


Airport Road

5,000 - 7,000

Bannerghatta Road

4,200 - 6,000

Whitefield

4,400 - 6,000

Yelahanka

3,500 - 5,000

•


•

Capital values witnessed an increase in the range of 3 - 10% QoQ in select precincts of Jayanagar, Bannerghatta Road and Yelahanka, while capital values in all a ll other micro-markets remained stable.

h t n o


Whitefield (Appts)

0

R N I

Koramangala

Rental values remained stable in almost all micro-markets barring Cooke Town, Jayanagar and Yelahanka where rental values have increased in the range of 6 - 7% QoQ. The Karnataka Stamps and Registration Department has increased the guideline value for properties in the Bangalore Urban, Bangalore Rural and Ramanagara Districts. The guideline values have been revised to the tune of 40 - 100% in selected areas. COLLIERS VIEW: Going forward, we expect capital values in both the primary and secondary sales markets to remain stable considering the huge supply in the pipeline and the continuous addition of new projects. The IT/ITeS sector will remain the primary demand generator for mid-range residential properties.

Jayanagar

20

Palace Orchard

Airport Road

Bannerghatta Road Indiranagar

AVERAGE CAPITAL VALUE TRENDS 25,000

20,000

15,000 . t f . q s r e P R 10,000 N I

5,000

0

8 0 0 2 Q 1

8 0 0 2 Q 3

9 0 0 2 Q 1

9 0 0 2 Q 3

0 1 0 2 Q 1

0 1 0 2 Q 3

1 1 0 2 Q 1

1 1 0 2 Q 3

2 1 0 2 Q 1

2 1 0 2 Q 3

3 1 0 2 Q 1

3 1 0 2 Q 3

F 4 1 0 2 Q 1

F 4 1 0 2 Q 3

Central

Cooke Town

Jayanagar

Indiranagar

Airport Road

Bannerghatta Road

Yelahanka

Whitefield

Palace Orchard

Koramangala


SELECT NEW PROJECTS

PROJECT NAME

LO C AT I O N


Purva Skydale

Sarjapur Road

Puravanakara Ltd.

4Q 2016

5,200

Unishire Terraza

Thanisandra Road

Unishire Projects

4Q 2016

4 , 3 00

Pueblo

Off Sarjapura Road

Lalith Gangadhar Constructions

4Q 2016

7,500

Raffles Park

Whitefield

Raffles Residency

4Q 2015

7,500

Nitesh British Columbia

Kanakapura Road

Nitesh Estates

4Q 2016

3,900

Sobha Paldium

Yemalur Road

Sobha Developers

4Q 2016

8,210


RAT E ( PE R S Q . F T. ) * *


P. 8



KOLKATA


•

During 3Q 2013, micro-markets like Dum Dum, Sonarpur, Rajarhat, Behala and Regent Park remain more active in terms of absorption in both primary and secondary markets. Various developers offered discounts in the range of 5 - 9% on the basic sales price to lure customers during the festive season.

19,000 17,000 . t f . q s r e p

15,000 13,000

R N I

11,000 9,000 7,000 5,000 3,000

•

KOLKATA


1,000

e r o p i l A

r u p i n a w a h B

e g n u g y l l a B

t e e r t S n o d u o L

d a o R h a h S A P

•

Rental Value •

Construction Pace


Tollygunge

3,600 - 4,800

Behela

2,900 - 3,700

Salt Lake

4,000 - 6,000

EM Bypass

4,000 - 7,000

New Town -Rajarhat

3,200 - 4,600

e k a L t l a S

e g n u g y l l o T

t a h r a j a R n w o T w e N

d a o R P I V

a l e h e B

AVERAGE RENTAL VALUE Bhawanipur

50

New Town Rajarhat

4Q 2013F

New Project

s s a p y B M E

PA Shah Road

40

Capital Value

Micro Market

Numerous new launches were witnessed in micro-markets like Rajarhat, Barrackpore, Khardah, Baruipur and D H Road, where developers like Apni Dharti Developers, Shapoorji Paloonji, Siddha Group, Vibgyor Group and Merlin Group launched their residential projects in the price range of INR2,165 - 4,150 per sq ft.

•


This quarter saw the completion of few residential projects / parts of projects in micromarkets like Narendrapur and Rajarhat. Despite new launches and fair absorption, capital values for the prime residential properties remained stable across all micromarkets. However, rents rose by 4 - 9% QoQ in micro-markets like Tollygunge, Behela, Ballygunge, Salt Lake, EM Bypass, VIP Road and New Town – Rajarhat. The Centre has approved the master plan presented by the West Bengal state government to develop Rajarhat New Town as a solar city. The master plan proposes an investment of INR 400 cr; has been prepared to reduce the projected energy demand from conventional power.

30 VIP Road

h t n o


Tollygunge

20 10 0

Alipore

EM Bypass

R N I

Behela

Salt Lake

Ballygunge

Loudon Street


10,000 8,000 6,000 4,000

•

COLLIERS VIEW: Demand in the Kolkata market is primarily driven by the mid- segment; due to this, capital values in the middle and affordable segments are likely to see marginal appreciation. A number of developers are planning to develop premium properties in prime locations of south central Kolkata.

2,000 0

8 0 0 2 Q 1

8 0 0 2 Q 3

9 0 0 2 Q 1

9 0 0 2 Q 3

0 1 0 2 Q 1

0 1 0 2 Q 3

1 1 0 2 Q 1

1 1 0 2 Q 3

2 1 0 2 Q 1

2 1 0 2 Q 3

3 1 0 2 Q 1

3 1 0 2 Q 3

F 4 1 0 2 Q 1

F 4 1 0 2 Q 3

Bhawanipur

Alipore

Tollygunge

Behela

VIP Road

P A Shah Road

EM Bypass

Salt Lake

New Town - Rajarhat

Ballygunge

Loudon street


SELECT NEW PROJECTS

PROJECT NAME

LO C AT I O N


Merlin Crest

D H Road

Merlin Group

4Q 2016

4,150

Happy Villa

Rajarhat

Siddha Group

4Q 2016

3,000

Siddha Water Front

Khardah

Siddha Group

4Q 2016

2,300

North City

Barrackpore

Vibgyor Group

4Q 2015

2,615

Sukhobristi Phase III

Rajarhat

Shapoorji Paloonji

4Q 2015

3,375

Swarnalata

Baruipur

Apni Dharti Developers

2Q 2016

2,165


RATE ( PE R S Q . F T. ) * *



P. 9


PUNE


•

•

PUNE


4Q 2013F

Capital Value

•

New Project Construction Pace


Kalyani Nagar/Viman Nagar/Kharadi

5,000 - 12,000

Baner/Hinjewadi/Wakad/ Pashan

3,800 - 6,000

Kothrud/Bavdhan/ Wajre

3,800 - 6,000

NIBM/Undri/Kondhwa

3,800 - 5,000

Pimpri/Chinchwad/C ha hakan

3,000 - 4, 50 500

13,000

. t f . q s r e p

11,000 9,000

R N I

7,000 5,000 3,000 1,000

- i i d r u V r a p / r a i a h n g K a w a / a r N h i a g B n a a y N l a n K a m

/ b p l u m a C t C / a o n B a c c e D

During 3Q, capital values in Pune registered a slight increase in the eastern and western blocks primarily in mid-segment projects; however, average capital values have remained almost unchanged in the main micro-markets.

r a s p a d a H / a t t a p r a g a M

Parallel to capital prices, rental values have marked a slight increase in main residential hubs including central areas of Boat Club Road, Camp and Deccan, as well as eastern suburbs, such as Magarpatta, Hadapsar, and western areas namely Baner, Hinjewadi, Pashan and Wakad.

/ i n a d h a s w a e P j / n i d a H / r k a e W n a B

Note: Ongoing Price (P.S.F): Indicative asking price for premium residential properties per sq.ft. •

In this quarter, the National Green Tribunal has approved the on-going construction of a 2.35-km road from Vithalwadi to the NH-4 bypass with a reduction in the width of the road from the proposed 30 m to 24 m and elevating it in the blue line area. In addition, the central government has approved a proposal to facilitate smooth transfer of government land for speedy execution of metro projects across the country. COLLIERS VIEW: Although a general slowdown has been registered this year, with the onset of the festive period, developers are upbeat about the sales prospects in the upcoming quarter. New project launches will be lesser than in the previous year. Rents and capital values are likely to remain stable across micro-markets.

/ n d a a k w a h h c C n i h C / i r p m i P

a w h d n o K / i r d n U / M B I N

Kalyani Nagar/Viman Nagar/ Kharadi Bhawanipur

30 25 20

Deccan/Camp /Boat Club

15

h t n o

10


5 0

R N I

NIBM/Undri/ Kondhwa

Magarpatta/ Hadapsar

Kothrud/ Bavdhan/ Wajre •

/ e n r a j a h W d v a B / d u r h t o K

AVERAGE RENTAL VALUE

Pimpri/Chinchwad/ Chakan

Rental Value

Micro Market

In 3Q 2013, fewer new residential projects and new phases of on-going projects were launched in Pune due to subdued demand. Most of the developments are mainly located in areas such as Kalyani Nagar, Wakad, Kharadi, Hinjewadi, Wagholi and Pimpri. New launches were priced, on average, from INR 3,600 to 5,500 per sq ft, and INR 8,500 to 13,000 per sq ft for premium projects, which are scheduled to be completed after 2016.

Baner/Hinjewadi/Wakad/Pashan


7,000 6,000 5,000 4,000 3,000 2,000

9 0 0 2 Q 1

9 0 0 2 Q 3

0 1 0 2 Q 1

0 1 0 2 Q 3

1 1 0 2 Q 1

1 1 0 2 Q 3

2 1 0 2 Q 1

2 1 0 2 Q 3

3 1 0 2 Q 1

2 1 0 2 Q 3

F 4 1 0 2 Q 1

Kalyani Nagar/Viman Nagar/Kharadi

Deccan/Camp/Boat Club/CentralPune

Kothrud/Bavdhan/Wajre

Magarpatta/Hadapsar

NIBM/Undri/Kondhwa

Baner/Hinjewadi/Wakad/Pashan

F 4 1 0 2 Q 3

Pimpri/Chinchwad/Chakan


SELECT NEW PROJECTS

PROJECT NAME

LO C AT I O N


Castel Royale Excel lente

Bhosale Nagar

ABIL Group

2Q 2016

6,000

Elite Silverio

Chikali-Moshi

Elite Landmarks

4Q 2015

3,750

Riviera Valentina

Baner

Skywards Developers

4Q 2015

8, 5 00

Rohan Kritika

Sinhagad Road

Right Choice Builders

4Q 2015

8,600

Sky Line

Wakad

Adi Group

4Q 2014

5,100

Water Bay

Kalyani Nagar

Brahma Corporation

4Q 2016

5,200


RATE ( PE R S Q . F T. ) * *


P. 10



RESIDENTIAL SUBMARKETS Mumbai The 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, Sa ntacruz, Juhu and Powai. Delhi The 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. Gurgaon The 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. NOIDA NOIDA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and Taj Express Highway. Chennai The 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 (Bangalor (Bangalore) e) 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. Kolkata The 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, Hada psar, Koregaon Park. Recently, increased activities has been witnessed in Pimpri-Chinchwad, Baner-Pashan and Kondhwa.

CITY BAROMETERS Increasing as compared to previous quarter Decreasing as compared to previous quarter Remained stable from previous quarter


P. 11

INDIA | NOVEMBER 2013 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

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For national Residential Services related queries please contact:

$2.0 billion in annual a nnual revenue

Poonam Mahtani, National Director Residential Services & Knowledge Systems [email protected] Tel: +91 22 4050 4551

1.11 billion square feet under management 1. Over 13,500 + professionals

: Raghavendra Prabhu, Office Director [email protected] IndiaBulls Finance Centre, 1701-A, 17th Floor, Tower 3, Elphinstone Mills, Senapati Bapat Marg, Mumbai, India - 400 013. Tel : +91 22 4050 4527, fax : +91 22 2351 4272

Mumbai

AUTHORS Amit Oberoi MRICS

National Director, Valuation & Advisory; Research Email: [email protected]

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

Surabhi Arora MRICS

Associate Director, Research Email: [email protected]

New Delhi : Statesman House, 4th Floor, Barakhamba Road, Connaught Place, New Delhi, India - 110001 Tel : +91 11 3044 6423, fax : +91 11 3044 6500

Sachin Sharma

Gurgaon : Technopolis Building, 1st floor, DLF Golf Course Main Road, Sector 54, Gurgaon, India - 122002 Tel : +91 124 456 7500, fax : +91 124 456 7502

Heliana Mano

Assistant Manager, Researc Research h Email: Heliana.mano@c [email protected] olliers.com m

Director 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

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

: 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

Pune

Assistant Manager, Researc Research h Email: Sachin.sharma@c [email protected] olliers.com m

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 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 report and other research materials ma y be found on our website at www.colliers.c www.colliers.com/India. om/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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COLLIERS INTERNATIONAL INDIA RESEARCH

BENGALURURESIDENTIAL MARKET Global | Retail | 2013

Global|Industrial| Midyear2013

HIGHLIGHTS

HIGHLIGHTS

radeFlows BolsterIndustrial Demand in Asia and theAmericas

ourists and Brands Flock to High Streets >

Slowereconomicgro wthinChinadidnotmakealastingden ton touristspendin ginHongKong.Retailsaleshaverebo undedrom thelowsoQ32012.TelatestfguresromtheHon gKongourism BoardshowthatHongKo ngreceivedatotalo12.5millioninb ound visitorsduringthethree-m onthperiodendin onthperiodendin gMay2013,an11.8% year-over-yearincrease.Nin emillionothosevisi torswererom MainlandChina.

Top Ten GlobalRetailRentsUSD/SqFt/Year

earrivalointernationalbrand ssuchasApple, > Combinedwithth

$3,052

NewYork,NY, Fifth Avenue

$2,087

HongKong, Queen’s Road Central

$1,994

HongKong, Canton Rd, Tsim Sha Tsui

Zara,andopshop ,inadditiontoluxurybran dsexpandingtheir presence,theAustralia nCBDisonceagainapopularshop ping th most destination.Pi ttStreetMallinSydneywasrankedthe8 expensiveinColliers ’HighStreetsurvey.

$1,325

NewYork,NY, Madison Avenue

$1,223

London, Old Bond Street

aceinLondoncont inuestoexceedsuppl y, > Demandoragshipsp

$1,114

HongKong, Causeway Bay

drivenlargelyrominternati onalretailersseekingashareothe spoils.Tisisleadi ngtosomenotablerentalgrow thintheWestEnd’s corelocations,wi thRegentStreetwitnessingdo ubledigitannual rentalgrowth.

>S ãoPauloandRiodeJaneiroremainleadersin

shoppingqua lity anddiversity,achievingthemostexpensiverentsandtheocuso growthorluxurybrands.Brazil’sHighStreet rentsarethemost costlyinLatinAmerica. SãoPaulo’sluxuryshoppingstreetRua OscarFreiresawa15%growthinaskingrentsovertheprevious year. Rua Garcia DÁ vila in Rio deJaneiroaw s rents grow by 6.7% .

>

$930

Zurich, Bahnhofstrasse

$871

Sydney, Pitt Street Mall

$836

Milan, Via Monte Napoleone

$834

Paris, Champs Élysées

All Rents in USD * ExchangeRateas oMarch 31,2013

MostU.S.highstreetrentsgrewo verlastyear.InNewYork,Fith Avenuerentsgrewby11percent.At$3,052persquareoot,F ith Avenuerentsarethemostexpensiv eintheworld.OnLasVegas Boulevard,askingrentsgrewby25percent .Philadelphia’ sWalnut StreetshowedthebiggestgainsintheU. S.,with33.8percentgrowth.

>

DespiteanemicU.S.jobgro wth,demandorNorthAmeri canindustrial warehousespaceandmod erndistributioncentersrem ainsstrong. ainsstrong. InQ12013,theNorthAmericanvacancyratedeclinedortheeighth straightquarter,down20basispo intsto8.20%.Canada’svacancyrate standsat4.13%.

> TanksinparttoarecentdropinexportstotheUnitedStates,Mexi co

hasseenslowingecono micgrowth.InQ12013,severalMexicoCity industrialwarehou seswerevacated,slightlyincreasi ngthevacancy rateto3.49%.

OFFICE PROPERTY MARKET OVERVIEW INDIA QUARTERLY UPDATE | OCTOBER | 2013

Residential Property Market Overview INDIA

ASIA PACIFIC OFFICE MARKET OVERVIEW

QUARTERLY UPDATE | AUGUST | 2013 1Q 2013

Acceleratingsuccess.


This book is printed on 100% Recyclable paper


>

Whileoccupierdeman dorindustrialpropertyinBrazilremain sstrong, themarketnowappearstohavestabilizedin toamorerationalmodeo sustainedgrowth.SãoPau lohasseenpositivenetabsorp tion,inspite othefnaltallyin2012showinga23%decreaseoverthepreviousyear.

>

DemandorBeijing’slo gisticspropertiesremain edasstrongasithas beensince2011.Rentsgrewby11.41%year-over-yearasotheendo Q12013.Shanghai’sindustri alsectorremainedstable,withaverage askingrentsorgroundoorpremi sesohighqualityacilitiesinbo th thelogisticsandworksho psectorsunchanged.

>

InHongKong,highqualitywareh ousebuildingsarenearlyull y occupied.Toseuse rsseekingtoexpandorrationalizetheirrealestate costshavehadtoconsidertheopti onosplitoperationsinlo wer qualitybuildings .

HEAT’SUP GlobalTop 10 IndustrialWarehouse Rents* LONDON

21.95

(HEATHROW)

21.83

HONG KONG SINGAPORE NGAPORE

21.02

TOKYO

20.61

OSLO

20.04 16.20

GENEVA

14.70

PARIS

14.70

HELSINKI MINSK

13.23

SYDNEY

13.23

6-Month Change in Rent**

12.5% 11.1%

LEGEND EMEA APAC

3.9% PARIS

2.2%

HELSI NKI GENEVA TOKYO HONGKONG

> Indian economic growth remained sluggish through theend of2012,

howeverweexpectindustrialactivitytoimprove,thankstorecent governmentactions.Tesein cludethegovernmen t-proposed National Investment and ManufacturingZones and thenewlyapproved 51% foreign direct investment in multi-brand retail trading.

M I N S K

O S L O L O

* December 2013Rent 2013Rent(USD/PSF/YR) **Localcurrency

S I S Y N G D N A E Y P O R E

LONDON -(HEATHROW)

Colliers Picks: Thelatest ColliersInternationalresearchunvailstop “ Thelatest

investmentdestinationinBengaluru(Bangalore) ” verthelasttwo decades,Bengaluruhas cementeditsposition astheleadingIT/ITeS. destinationamo ngst topIndiancities.In2012,Bengaluru commandeda30%market-share ofallofthecommercial(oce)real estateabsorbedacrossthetopseven cities(DelhiNCR,Mumbai,Pun e, Chennai,HyderabadandKolk ata). Bengaluru’scom mercialabsorptio mercialabsorptio n sharewasgreaterthanMumbaiand DelhiNCR.Theincreaseinjobshas beentheprimarygrowth-driver forresidentialrealestate.Thecity’ s populationisexpectedtoexceed12 millionby2020,ascomparedto8.5 millionin2011. Nowofcoursethecity isexperiencingasurgein investorsbuyingrealestate. Inspiteofincreasingprices , OfficeAbsorptioninMillionsqftamongmajor7citiesinIndia thecitystilliscomparatively aordablecomparedtooth er majorcitiessuchasMumba i andDelhi.Withitshigherrental Favorableexchangerate(INR/USD)1$=INR56.45 yieldsandfavourablecurrency exchangerates,Bengaluruis emergingasoneofthemost promisingm arketsinthecountry arketsinthecountry forResidentialinves tment. Moreover,theprofession al approachofdevelopersis alsoprovidingm uchneeded uchneeded comforttoinvestorsaswell asendusers.Considerin gthe demandpotential,itisnotonl y Bengaluru-bas eddevelopersthat areinvesting,butmanynation al leveldevelopersarealsoentering inthismarket. Thegovernmentisalso activelyparticipatinginthe

O

58

THEINTERNATIONALINDIAN July-August2013

PUNE RESIDENTIAL MARKET Colliers liersInternationalI ndiaResearch

PUNERESIDENTIALMARKET LUXURIOUSYETAFFORDABLE

P

uneisclassic a example oftherealestatemarket wherecommercial activiti vitieses lead eadthe residential dentialdevel opment inthecity.Punehasa large manufacturingbase,withmany many manufacturingaswell well asautomobi as automobile companies havi nglargeplants.In lastonedecadethecityhasalso emergedprominent asa IT/ITeS destination.Residentialaldemand demand inthecityi s mostly fromthelarge thelarge populati ationofworki on ofworkingprof ngprof essional essionals andtheol and theoldergener der generation ationretired retired fromthemi from themid-management d-managementcadre fromMumbai from Mumbaiwho whondthis this place attractivedueto aordabi lity,peace andproximity and proximitytoMumbai .The

Marketstowitnessresi dentialreal r eal estategrowth

commercialdevel developments opmentsaremost aremost KharadiWagholi & in East,Baner, attractive. ve.PunewitnessesmultiHinjewadi,Wakad Pashan, & Kothrud, directionalgrowth ionalgrowthofresidential dential Bavdhan& Wajreinwest andUndri & Forinvestment investment purpose,thenew projects ectsinvariousl ocations onssuch KondhwaintheSouth. residentialdevelopmen dentialdevelopmen ts located as Pimpri,Chinchwad,kan kan& Cha& inperipheralareasalongsidethe TalegaoninNorth Talegaonin NorthViViman manNagar

UpcomingInfrastructureDrivingCity’sGrowth sGrowth

Colliers’sPi ck: ck: “Theareas that willwitness maximum uptakewould bethosehaving commercialorindustrialactivities such as Hinjewadi , Magarpatta, Viman Nagar, Kharadi , Wagholi,Chakan,Pimpri,Bavdhan,Warje& Talegaon”. thecityhas hasseenconsiderable cityalsoattractsstudents ty alsoattractsstudentswhoare whoare thecity compelledby ed bythecity’s oeringof appreciationi nproperty values. Thegovernmenti s alsosoactively actively qualieducation. tyty theeconomic Alargeshareoftheupcoming participatingin growthofthecitybyundertaking premiumresidenti premium residentialals pacein pacei n various infrastructureproj ectssuch Puneisini n thef orm ormoftownship developments,themajoritytyofwhich ofwhich asPuneMetro,Bus RapidTransi t (BRT)andHighCapacityBus Route. isconcentratedinandaroundthe ITITand andindustrial industrialh ubs.In thepast,

FactorsDrivingGrowth ·Risingper isingper capi capitaincome taincome reects inin demandfor for houses houses ·Gradualshi shiftin ft inthe the demographic prolewit ewithmore servicepr ceprofess ofessionals ionals wit with higher gher incomerange ange ·FallilingRupeemakingNRI ngRupeemakingNRI investmentsmor tmentsmorelucrat el ucrative ive ·Highcommer ighcommercial abs absorpti orption on indicatessust catessustaineddemand aineddemand growth Source:Maharashtr a Economic onomicSurvey, Survey,RBI,Collier iers Inter International national I IndiaResearch ndiaResearch

56

THEINTERNATIONALIND IAN

THEINTERNATIONALIND IAN

57

Accelerating success.

India Residential Property Market Overview November 2013

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