Published on March 3, 2014
Residential Property Market Overview February 2014
Research & Forecast Report India I Residential | Feb 2014 SYDNEY CENTRAL BUSINESS DISTRICT research & forecast Report Macro Economic Overview • The GDP grew by 4.6% in the first half of FY2013-14, which is the slowest economic growth rate in the last nine years. The Reserve Bank of India (RBI), The World Bank, IMF and ADB have lowered the growth forecast from 3.75% to 5.3% for 2013-14. • RBI raised its policy repo rate to 7.75% amid market worries over slowing growth and the prospect of further tapering of US stimulus. Following the hike, banks are likely to increase their home loan rates. ECONOMIC BAROMETER Dec-12 Dec-13 Repo rate 8.00% 7.75% Reverse Repo rate 7.00% 6.75% CRR 4.25% 4.00% 7.31% 6.16% 10.00% 10.30% Inflation Home loan rate 1 Return on Alternative Investments Dec-12 Dec-13 31,096 30,434 -2.13% Silver 59,963 46,121 -23.08% Equity Realty Index 3 8.50% 9.00% ECONOMIC INDICATORS 12.0 5.88% 11.0 18,916 20,703 9.44% 10.0 1,940 1,347 -30.57% 8.0 SBI Home loan rate for loan upto INR 30 Lakhs 2 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. 9.0 In Percentage 2 Fixed Deposit 1 • COLLIERS VIEW: The Indian real estate markets are primarily sentiment driven, and the perception due to the adverse economic climate is that the residential sector will witness lower demand until at least the national elections. We believe that for those looking at a longer term investment, this is a good time to buy a property. Property today is available at good discounts, and with prospects of a stable government the demand is likely to rebound. YoY % Change Gold • Due to the pessimistic economic outlook, sales volumes have come down by 15% to 40%. In the primary market, many developers were willing to negotiate on prices and offered various incentives. In the secondary market, a substantial discount was available and prices were well below that of the primary market. This is primarily because investors shied away from the market, as they found it difficult to flip units and do not foresee significant capital appreciation in the realty sector in the short term. 7.0 6.0 5.0 4.0 3.0 2.0 1.0 Repo Rate Source: Goverment of India, Colliers International India Research 2 Research & Forecast Report | Feb 2014 | Residential | Colliers International www.colliers.com Cash Reserve Ratio Wholesale Price Index Oct ‘13 Dec ‘13 Jun ‘13 Aug ‘13 Feb‘13 Apr ‘13 Oct‘12 -2.0 Dec‘12 Jun‘12 Aug‘12 Feb‘12 Apr‘12 Oct‘11 Dec‘11 Jun‘11 Aug‘11 Feb‘11 Apr‘11 Oct‘10 Dec‘10 Jun‘10 Aug‘10 Feb‘10 Apr‘10 Oct‘09 Dec‘09 Aug‘09 Apr ‘09 Jun ‘09 Feb ‘09 Oct‘08 Dec’08 jun’ 08 Aug’08 -1.0 Apr ‘08 0.0
Mumbai AVERAGE CAPITAL VALUE RANGE 80,000 70,000 60,000 50,000 INR per sq.ft. • e market witnessed limited projects Th launched in micro-markets like Goregaon, Byculla and Dombivali. These projects were priced in the range of INR 12,750 to 19,000 per sq ft. A large-scale mid-range project, Palava by Lodha Group, was launched at Dombivali at INR4,545 per sq ft. Virar - Boisar 3,000 - 5,500 Note: Ongoing Price: Indicative asking price in the primary market. • COLLIERS VIEW: Low liquidity, an increase in interest rates and ready reckoner rates will keep residential markets under pressure in coming quarters. Absorption in the luxury segment will remain restricted; however, the new launches in the middle and low-end segments will continue to have traction at the introductory prices. Overall capital values in the primary and secondary sales markets are expected to be under pressure in the short to medium term. Andheri Powai Santacruz Juhu Khar Bandra Prabhadevi Worli South Mumbai 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Colaba, Cuffe Parade Bandra Andheri Khar Prabhadevi Juhu Santacruz Breach Candy, Napeansea Road, Peddar Road 3Q2014F 3,500 - 7,500 80,000 3Q2013 Navi Mumbai AVERAGE CAPITAL VALUE TRENDS 1Q2014F 4,000 - 8,000 Bandra Khar 1Q2013 Thane - Kalyan Prabhadevi Santacruz 1Q2012 Ongoing Price (P.S.F) Worli 3Q2012 Micro Market 0 Juhu 3Q2011 INVESTMENT OPPORTUNITIES 50 1Q2011 Construction Pace Colaba, Cuffe Parade 100 Andheri 3Q2010 New Project Breach Candy, Napeansea Road, Peddar Road 150 1Q2010 Rental Value • The state government has increased the ready reckoner rates for residential and commercial properties by up to 20% in 26 posh zones of Mumbai. The increase in rates will impacts micro-markets like Worli, Napeansea Road, Altamount Road and Carter Road. The government is expected to collect over INR20,000 crore in 2013 - 14 via stamps and registration. The increase in the ready reckoner rates may result in increase in property prices in these areas. Malabar Hill, Altamount Road, Carmichael Road 200 Powai 3Q2009 Capital Value AVERAGE rental value 1Q2009 1Q 2014F 0 1Q2008 4Q 2013 10,000 INR per sq.ft. per month CITY RESIDENTIAL BAROMETER • The average capital and rental values of prime residential properties remained stable. Due to very limited transactions by both investors and end-users across the city. 30,000 20,000 INR Per sq.ft. MumBAI 40,000 3Q2008 • Demand for premium residential properties in the secondary sales market remained moderate this quarter due to high price points. In the primary market, developers remained open to negotiation on prices in projects having significant unsold inventory. Malabar Hill, Altamount Road, Carmichael Road Powai Worli Note: Above values represents indicative asking price for premium properties SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Aveza (Gateway Towers) Mulund East Tata Housing 4Q 2017 13,500 Elanza Santacruz East Shamik Group 1Q 2015 17,000 Monte South Byculla Marathon Realty 4Q 2018 18,999 Palava Dombivali Lodha Group 4Q 2018 4,545 Raheja Ridgewood Goregaon Raheja Group 4Q 2017 13,250 Sunteck City - Avenue II Goregaon Sunteck Realty 4Q 2018 12,750 Note: * As mentioned by developer ** Base selling price as quoted by developer 3
Delhi Greater Kailash I & II, South Extension Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh Anand Niketan, Vasant Vihar Shanti Niketan, Westend Chanakya Puri Anand Niketan, Vasant Vihar 160 Chanakya Puri 120 80 40 Greater Kailash I & II, South Extension Golf Links, Jor Bagh, Sunder Nagar 0 Shanti Niketan, Westend Friends Colony, Maharani Bagh • In order to create more land for residential development on the outskirts of Delhi, the Delhi Development Authority (DDA) proposes to target areas like Kanjhawala, Najafgarh, Burari, Ghitroni and Bawana for real estate development as amended in Master Plan of Delhi (MPD-2021). Panchashila, Anandlok, Niti Bagh, SDA AVERAGE CAPITAL VALUE TRENDS 80,000 70,000 60,000 50,000 40,000 30,000 20,000 Prithviraj Road, Aurangzeb Road Chanakya Puri Golf Links, Jor Bagh, Sundar Nagar Shanti Niketan, Westend 3Q2014F 3Q2013 1Q2014F 1Q2013 3Q2012 0 1Q2012 10,000 1Q2008 • COLLIERS VIEW: The residential sector will witness restricted demand until at least the national elections. However, the new state government started focusing on various stalled infrastructure projects in the city which are expected to be operational in coming quarters. Rental and capital values will remain under pressure in near term for premium properties. Golf Links, Jor Bagh, Sunder Nagar Prithviraj Road, Aurangzeb Road Prithviraj Road, Aurangzeb Road 200 1Q2011 Construction Pace • Capital values have come under pressure and properties were available in the market at heavy discounts. The sales volumes were low and only a few deals were concluded. AVERAGE rental value 3Q2011 New Project • Pressures on rents continued with the officials of multinational corporations and expatriates that are currently trying to optimise their costs negotiating on rental values. However, asking rentals have not changed much from previous quarter. 1Q2010 Rental Value 0 3Q2010 Capital Value 15,000 1Q2009 1Q 2014F 45,000 30,000 INR Per sq.ft. 4Q 2013 60,000 3Q2009 CITY RESIDENTIAL BAROMETER 90,000 75,000 INR per sq.ft. per month Delhi 105,000 3Q2008 • Limited new supply entered into Delhi prime residential this quarter, in the form of redevelopment in Vasant Vihar and Panchsheel Park micro markets. AVERAGE CAPITAL VALUE RANGE 120,000 INR per sq.ft. • The Delhi residential market remained depressed for a third consecutive quarter. Sales volumes were reduced significantly primarily because of limited investor interest in view of the current political turbulence. Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh Greater Kailash I & II, South Extension Anand Niketan, Vasant Vihar Note: Above values represents indicative asking price for premium properties SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Capital Greens Shivaji Marg DLF Ltd. 2Q 2015 14,000 Castlewood Okhla Indiabulls Ltd. 2Q 2014 12,800 Kings Court Greater Kailash- II DLF Ltd. 1Q 2015 40,000 Queens Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000 Signature Villas Connaught Place Tata Housing Ltd. 4Q 2017 120,000 - 150,000 Winter Hills Dwaraka Morh Umang Realtech 2Q 2014 10,250 Note: * As mentioned by developer ** Base selling price as quoted by developer 4 Research & Forecast Report | Feb 2014 | Residential | Colliers International
Gurgaon Gurgaon 35,000 30,000 • Projects which were close to completion witnessed robust demand from endusers. However, in the secondary market, a substantial discount was available and prices were well below that of the primary market. Slow construction activities resulted in completion of few residential projects / parts of projects like “Tulip Orange” by Tulip Infratech Pvt, Ltd, at Sector 70. 25,000 20,000 15,000 10,000 DLF Phase I Sohna Road & Ext Sushant Lok NH - 8 0 Golf Course Road 5,000 AVERAGE rental value Golf Course Road 80 Note: Ongoing Price: Indicative asking price in the primary market. • COLLIERS VIEW: Looking forward, the capital values are expected to remain under pressure in coming quarters. End-user activity is expected to remain restricted primarily due to high price points and relatively fewer options available for mid-segment housing. The pre-launches in the mid- and lowend segment will continue evince good response at the introductory prices. INR per sq.ft. per month 4,000 2,000 0 Golf Course Road NH-8 Sohna Road & Ext Sushant Lok 3Q2014F 4,000 - 5,000 3Q2013 New Gurgaon 8,000 6,000 1Q2014F 4,500 - 5,500 1Q2013 Pataudi Road 10,000 3Q2012 4,000 - 5,000 14,000 12,000 1Q2012 Sohna Extension 18,000 16,000 1Q2011 7,500 - 9,000 AVERAGE CAPITAL VALUE TRENDS 3Q2011 Golf Course Road Extension DLF Phase I 1Q2010 Ongoing Price (P.S.F) Sushant Lok 3Q2010 INVESTMENT OPPORTUNITIES • In order to boost residential real estate activities, the Haryana government has decided to allow mixed land use in commercial zones notified in the master plan. According to the new policy, projects with at least 10 acres land and located along at least 30 meter wide road, will be allowed mixed use development comprising a maximum of 50% residential usage. 0 3Q2009 Construction Pace Sohna Road & Ext 20 1Q2009 New Project 40 NH - 8 3Q2008 Rental Value • Due to decreased demand, developers remained cautious in launching new projects. Restricted sales volumes in both primary and secondary markets resulted in downward pressure on both capital and rental values across all micro markets. INR Per sq.ft. 1Q 2014F Capital Value Micro Market 40,000 60 CITY RESIDENTIAL BAROMETER 4Q 2013 AVERAGE CAPITAL VALUE RANGE 45,000 INR per sq.ft. • During 4Q 2013, restricted investor activity pulled down the overall demand in Gurgaon’s residential market. In the primary market, developers did not reduce the base selling price, but many were willing to negotiate and offered various incentives. DLF Phase I Note: Above values represents indicative asking price for premium properties SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Ashiana Landcraft Sector 88A Ashiana Group 4Q 2017 6,250 BPTP Pedestal Sector 70A BPTP Ltd. 4Q 2018 7,000 Eldeco Sohna Sohna Road Eldeco Group 4Q 2018 4,250 Imperial Tower (Godrej Summit) Sector 104 Godrej Group 4Q 2017 7,400 Ivy Terraces Sector 70 Unitech Ltd. 4Q 2018 4,500 - 6,500 Tranquil Heights Sector 82A Vatika Group 4Q 2017 7,200 Note: * As mentioned by developer ** Base selling price as quoted by developer 5
NOIDA AVERAGE CAPITAL VALUE RANGE • The NOIDA residential property market witnessed low sales volumes in both primary and secondary residential markets in 4Q 2013. 4,000 - 7,000 Sectors 71 to 83 4,500 - 5,500 Note: Ongoing Price: Indicative asking price in the primary market. Sector 28, 29, 30 Sector 61, 62., 63 Sector 50 Sector 92/93 Sector 44 0 Sector 61,62,63 INR per sq.ft. Sector 92/93 AVERAGE CAPITAL VALUE TRENDS 12,000 10,500 9,000 7,500 6,000 4,500 3,000 1,500 0 3Q2014F NOIDA Expressway Sector 50 10 1Q2014F Ongoing Price (P.S.F) 20 Sector 28,29,30 3Q2013 Micro Market • COLLIERS VIEW: Currently, investors are delaying their decisions due to economic and political uncertainties. However, considering the fact that the NOIDA residential market is primarily driven by end-users, the market may see marginal increase in end-user and investor activity with many new projects in the pipeline offering various attractive offers and other promotional schemes to lure buyer interest. The market is expecting the completion of various projects that were launched during 2009 to 2010 and which have already been delayed one or two years. This additional supply will keep capital and rental values stable across all micro markets. 30 1Q2013 INVESTMENT OPPORTUNITIES Sector 44 40 1Q2012 Construction Pace AVERAGE rental value 3Q2012 New Project 0 3Q2011 Rental Value 1,500 1Q2011 • In order to optimise the utilisation of land and improve the habitability of NOIDA, the NOIDA authority has approved a mixed land use policy in NOIDA Master Plan 2021, which will permit residential facilities in commercial and institutional areas. Capital Value 3,000 3Q2010 1Q 2014F 4,500 1Q2010 4Q 2013 6,000 3Q2009 CITY RESIDENTIAL BAROMETER 9,000 7,500 INR per sq.ft. per month Noida • Capital values and rental values in both primary and secondary markets remained stable; this is due to limited interest from both investors and end-users. However, developers offered various incentives, that included cash discount to clear their unsold inventories. 10,500 INR Per sq.ft. • New launches have dried up in the fourth quarter in NOIDA and only a few residential projects were launched, in the price band of 4000 to 9000 per sq ft. However a premium residential project “Brys Buzz” by Brys Group at Sector 150 was priced at INR17,000 per sq ft. 12,000 Sector 92 / 93 Sector 44 Sector 50 Sector 61,62,63 Sector 28,29,30 Note: Above values represents indicative asking price for premium properties SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Brys Buzz Sector 150 Brys Group 4Q 2017 17,000 Mahagun Meadows Sector 150 Mahagun Group 4Q 2016 4,550 Pratishtha Sector 75 Panchsheel Buildtech Pvt. Ltd 4Q 2017 4,960 Romano Sector-118 Supertech Ltd. 4Q 2017 4,150 Vasilia Sector-32 & 25A Wave Group 4Q 2016 8,370 Victory We Sector 25A Victory Projects 4Q 2015 8,650 Note: * As mentioned by developer ** Base selling price as quoted by developer 6 Research & Forecast Report | Feb 2014 | Residential | Colliers International
Chennai CITY RESIDENTIAL BAROMETER 4Q 2013 1Q 2014F Capital Value Rental Value New Project Construction Pace INVESTMENT OPPORTUNITIES Micro Market Ongoing Price (P.S.F) Velachery 5,000 - 7,000 Sholinganallur 3,500 - 4,200 Siruseri/ Kazipattur 3,000 - 4,000 Kelambakkam 3,000 - 4,000 34,000 30,000 INR per sq.ft. 26,000 22,000 18,000 14,000 10,000 6,000 Siruseri/ Kazipattur Sholinganallur Velachery T Nagar Adyar Beasant Nagar Anna Nagar Alwarpet / R A Puram Boat Club Nungambakkam 2,000 AVERAGE rental value Boat Club 85 Siruseri/ Kazipattur Nungambakkam 70 55 40 Sholinganallur Anna Nagar 25 10 -5 Adyar Velachery • During the same quarter, capital values increased in the range of 2 - 9% QoQ across all micro-markets, except Nungambakkam and Anna Nagar, where capital values remained stable due to the high price bracket and low demand base. Beasant Nagar Alwarpet / R A Puram T Nagar AVERAGE CAPITAL VALUE TRENDS 25,000 21,000 • Rents increased in the range of 4 - 10% QoQ in most micro-markets, except Boat Club, Anna Nagar, Adyar, Beasant Nagar, T Nagar and Velachery where rents remained stable. 17,000 INR Per sq.ft. Chennai • 4Q 2013, saw completion of various premium projects, including Jashn by Arihant Group at Egmore, 36 Carat by Akshaya Homes at Kilpauk, both priced in the range of INR18,000 - 22,000 per sq ft and mid-range projects like Oriana by Doshi Housing at Perungudi; Svasti by True Value Homes at Thoraipakkam; Lotus Pond by Vijayshanthi Group at Padur; Upscale by Hiranandani Group and Opaline Ph II by Olympia Group, both at Egattur. AVERAGE CAPITAL VALUE RANGE 38,000 INR per sq.ft. per month • In 4Q 2013, many new premium and mid-range projects were launched in Chennai. Micro-markets like R.A. Puram, T. Nagar and Kotturpuram saw premium projects launched in the price range of INR15,000 - 25,000 per sq ft, while micro-markets like Thoraipakkam, Kelambakkam, Siruseri and Pallikaranai witnessed mid-range projects launched in the price bracket of INR3,000 - 7,000 per sq ft. 13,000 9,000 Boat Club Sholinganallur Siruseri/ Kazipattur Alwarpet / R A Puram Beasant Nagar T Nagar Nugambakkam 3Q2014F 1Q2014F 1Q2013 3Q2013 1Q2012 3Q2012 1Q2011 3Q2011 3Q2010 1Q2010 3Q2009 1Q2009 1,000 1Q2008 • COLLIERS VIEW: Going forward, we expect a moderate increase in capital values in the short term in the mid-range segment. The demand is expected to pick up further in this segment in the near term. Rental and capital values for premium properties will continue to remain stable cautious sentiments of investors as well as occupiers. 3Q2008 5,000 Note: Ongoing Price: Indicative asking price in the primary market. Anna Nagar Adyar Velachery Note: Above values represents indicative asking price for premium properties SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Aldea Thoraipakkam Casa Grande 4Q 2015 5,100 Czar R.A.Puram Real Value 4Q 2015 25,000 Lilac Heights R.A.Puram ETA Star 4Q 2015 18,000 Manadarin Thoraipakkam Radiance 2Q 2015 7,100 Park Residence Kotturpuram Olympia Group 4Q 2015 23,000 Sukriti T.Nagar BBCL 2Q 2015 15,000 Note: * As mentioned by developer ** Base selling price as quoted by developer 7
Bengaluru AVERAGE CAPITAL VALUE RANGE 32,000 28,000 24,000 20,000 INR per sq.ft. • In 4Q 2013, the Bengaluru residential market witnessed reasonable demand for residential space, mainly in micromarkets like Yelahanka, Sarjapur, Whitefield and Thanisandra Road. However there were less projects launched this quarter as compared to previous three quarters. 16,000 12,000 8,000 Bengaluru CITY RESIDENTIAL BAROMETER Yelahanka Bannerghatta Road Whitefield Airport Road Airport Road Jayanagar Cooke Town Indiranagar Koramangala Central Palace Orchard 0 AVERAGE rental value Central 80 Yelahanka Cooke Town Yelahanka 3,500 - 5,000 Note: Ongoing Price: Indicative asking price in the primary market. • COLLIERS VIEW: The city’s premium residential market is expected to remain active, due to healthy residential demand for mid-range and premium housing, accompanied by full-on construction activities. Looking at the positive outlook, we anticipate that capital values will increase further from 2 to 4% QoQ across all micro-markets. 10,000 5,000 0 3Q2014F 4,400 - 6,000 3Q2013 Whitefield 15,000 1Q2014F 4,200 - 6,000 20,000 • n a major land deal, Tata Housing has I purchased 20 acres of land in north Bengaluru from Alstom T&D India for a total consideration of INR120 crore to develop a luxury housing project. 1Q2013 Bannerghatta Road 25,000 1Q2012 5,000 - 7,000 AVERAGE CAPITAL VALUE TRENDS • Continuous demand from IT/ITeS sector employees caused an upsurge of 1 - 7% in rents QoQ, across all micro-markets. 3Q2012 Airport Road Airport Road Indiranagar 3Q2011 Ongoing Price (P.S.F) Bannerghatta Road 1Q2011 Micro Market Palace Orchard 3Q2010 INVESTMENT OPPORTUNITIES Koramangala 1Q2010 Construction Pace 0 1Q2009 New Project Jayanagar 20 3Q2009 Rental Value 40 Whitefield 3Q2008 Capital Value • Overall capital values in most of the micro-markets remained stable during the quarter; however, a increase of 9 12% QoQ was witnessed in locations like Jayanagar, Bannerghatta Road, Whitefield and Yelahanka. This is because few projects have been launched at a premium price, making a significant change in the average capital price range. 1Q2008 1Q 2014F INR per sq.ft. per month 60 INR Per sq.ft. 4Q 2013 • In this quarter, the city witnessed completion of various premium and mid-range projects, like Nitesh Central Park by Nitesh Estates at Bagalur Cross, Concorde South Scape by Concorde Group at E-City Phase 2, Patel Smondo Ville by Patel Realty at E-City Phase 1, and Chartered Jardin by Chartered Housing at RMV 2nd Stage. 4,000 Central Cooke Town Jayanagar Indiranagar Airport Road Bannerghatta Road Yelahanka Koramangala Whitefield Palace Orchard Note: Above values represents indicative asking price for premium properties SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Concorde Amber Off Sarjapur Road Concorde Group 4Q 2016 4,000 Mantri Lithos Off Hebbal Mantri Developers 4Q 2017 5,590 Prestige Lakeside Habitat Varthur Road Prestige Group 4Q 2017 4,770 Purva Westend Hosur Main Road Puravankara Developers 4Q 2017 4,890 Skylark Ithaca Whitefield Skylark Mansion 4Q 2017 3,930 Sobha Palladium Yemlur, Old Airport Road Sobha Developers 4Q 2016 8,560 Note: * As mentioned by developer ** Base selling price as quoted by developer 8 Research & Forecast Report | Feb 2014 | Residential | Colliers International
Kolkata AVERAGE CAPITAL VALUE RANGE • Reasonable demand was witnessed during the quarter, primarily in midrange micro-markets located in South and North Kolkata. Most of this demand has come from end users. Salt Lake 4,000 - 6,000 EM Bypass 4,000 - 7,000 New Town -Rajarhat 3,200 - 4,600 Note: Ongoing Price: Indicative asking price in the primary market. • COLLIERS VIEW: Many mid-range and affordable residential projects were launched in the peripheral locations and the city witnessed increasing activity in the mid-range segment. This could be due to smaller ticket size and affordability. Looking forward, capital values are expected to rise marginally, especially in the outskirt micro-markets due to demand from end-users. INR per sq.ft. Behela VIP Road New Town -Rajarhat Salt Lake Tollygunge EM Bypass PA Shah Road Loudon Street Ballygunge Bhawanipur Alipore Salt Lake Behela Ballygunge Loudon Street AVERAGE CAPITAL VALUE TRENDS 20,000 18,000 16,000 12,000 10,000 8,000 6,000 4,000 2,000 0 3Q2014F 2,900 - 3,700 Alipore 1Q2014F Behela 0 EM Bypass 1Q2013 3,600 - 4,800 Tollygunge 10 3Q2013 Tollygunge 20 1Q2012 Ongoing Price (P.S.F) 30 VIP Road 3Q2012 Micro Market PA Shah Road 3Q2011 INVESTMENT OPPORTUNITIES 50 40 1Q2011 Construction Pace • Capital values in the premium residential market remained stable in almost all micro-markets, except Alipore and Ballygunge where around a 3% QoQ increase was witnessed during the quarter. On the other hand, rents rose in the range of 1 - 4% QoQ in almost all micro-markets, except PA Shah Road, Loudon Street, Ballygunge and VIP Road where rents remained stable, due to low base demand and limited availability. Bhawanipur New Town Rajarhat 1Q2010 New Project AVERAGE rental value 3Q2010 Rental Value 0 3Q2009 Capital Value 10,000 1Q2009 1Q 2014F 30,000 20,000 1Q2008 4Q 2013 40,000 3Q2008 CITY RESIDENTIAL BAROMETER • Construction activities remained moderate resulting in completion of few projects / parts of the projects during the last quarter of 2013, including Meera Garden by Rajat Group at Madhyamgram and Tirumani by Mani Group at Ballygunje. 60,000 50,000 INR per sq.ft. per month kolkata 70,000 INR Per sq.ft. • During 4Q 2013, the Kolkata residential market saw many new launches especially in micro-markets like Rajarhat Action Area-III, Mahishbathan, Tollygunj, Narendrapur and Belghariya Expressway. Most of these projects were launched in the affordable and midranges and were priced in the range of INR2,900 - 4,150 per sq ft. 80,000 Bhawanipur Alipore Tollygunge Behela VIP Road P A Shah Road EM Bypass Salt Lake Ballygunge Loudon street New Town Rajarhat Note: Above values represents indicative asking price for premium properties SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Curiocity Action Area-III Realtech Nirman 4Q 2016 4,150 Ideal Aquaview Mahishbatan Ideal Group 4Q 2016 3,700 Ivory Tower Tollygunj Ivory Group 4Q 2015 4,000 Magnolia Skyview Rajarhat Magnolia Group 4Q 2016 3,200 North Grande Belghariya Expressway Mounthill Realty 4Q 2016 3,600 Sucasa Twins Norendrapur Rupayan Construction Pvt Ltd 4Q 2015 2,900 Note: * As mentioned by developer ** Base selling price as quoted by developer 9
Pune Pune AVERAGE CAPITAL VALUE RANGE 80,000 70,000 60,000 50,000 INR per sq.ft. 40,000 30,000 20,000 Pimpri/Chinchwad/ Chakan NIBM/Undri /Kondhwa Kothrud/ Bavdhan/ Wajre Baner/Hinjewadi/ Wakad/Pashan • During the surveyed quarter, construction activities remained slow and thus no known projects / parts of projects saw completion. Going ahead, construction activities are likely to improve. Magarpatta/ Hadapsar 0 Kalyani Nagar/ Viman Nagar/ Kharadi Bhawanipur 10,000 Deccan/Camp/ Boat Club • Demand for residential units in Pune continued to remain stable and the city witnessed launch of a number of midrange projects in the price range of INR 4,500 to 5,500 per sq ft. However, few premium projects like “The Palladium” by Guardian Developers at Kothrud, “Sanctum” by Kumar Properties at Baner, and “Panchshil One North” by Panchshil Realty at Hadapsar, were priced in the range of INR9,900 to INR14,900 per sq ft. AVERAGE rental value Kalyani Nagar/Viman Nagar/Kharadi Bhawanipur 30 Kothrud/Bavdhan/ Wajre 3,800 - 6,000 NIBM/Undri/ Kondhwa 3,800 - 5,000 Pimpri/Chinchwad/ Chakan 3,000 - 4,500 Note: Ongoing Price: Indicative asking price in the primary market. • COLLIERS VIEW: The Pune residential market saw many new launches in both premium and mid segments. Continuous demand from end-users and investors was witnessed and is expected to continue in the coming few quarters. In anticipation of reasonable demand, capital values are expected to rise in the mid-range and affordable housing locations like PimpriChinchwad, Chakan and Kondhwa in the range of 2% to 3% on a quarterly basis. 7,000 6,000 5,000 4,000 3,000 2,000 1Q2014F 5,000 - 12,000 3Q2014F Baner/Hinjewadi/ Wakad/Pashan 9,000 8,000 3Q2013 5,000 - 12,000 11,000 10,000 1Q2013 Kalyani Nagar/ Viman Nagar/ Kharadi AVERAGE CAPITAL VALUE TRENDS 3Q2012 Ongoing Price (P.S.F) Baner/Hinjewadi /Wakad/Pashan 1Q2012 Micro Market Kothrud/ Bavdhan/ Wajre 1Q2011 INVESTMENT OPPORTUNITIES • In 4Q 2013, the local government hiked the Ready Reckoner (RR) rates in an average range of 10% to 20% in almost all the micro markets. Capital values are set to increase mainly in locations like Koregaon Park, Pimple Gurav and Pimpri-Chinchwad, where a sharp increase in rates was witnessed. Magarpatta/ Hadapsar 3Q2011 Construction Pace NIBM/ Undri/ Kondhwa 3Q2010 New Project 5 1Q2010 Rental Value 15 0 1Q2009 Capital Value Deccan/Camp /Boat Club 20 10 3Q2009 1Q 2014F 25 Pimpri/ Chinchwad /Chakan INR per sq.ft. per month 4Q 2013 • Capital values in micro markets like Kalyani Nagar, Viman Nagar, Kharadi, Deccan, Camp, Boat Club, PimpriChinchwad and Chakan saw a marginal increase in the range of 1% to 3% quarteron-quarter (QoQ). The rest of all micro markets remained stable. INR Per sq.ft. CITY RESIDENTIAL BAROMETER Kalyani Nagar/Viman Nagar/ Kharadi Kothrud/Bavdhan/Wajre Deccan/Camp/Boat Club/ Central Pune Magarpatta/Hadapsar NIBM/Undri/Kondhwa Baner/Hinjewadi/Wakad/ Pashan Pimpri/Chinchwad/Chakan Note: Above values represents indicative asking price for premium properties SELECT NEW PROJECTS Project Name Location Developer Name Tentative Possession* Rate (Per Sq.ft.)** Bramha Skycity Dhanori Bramha Realty & Infrastructure 3Q 2015 4,550 - 4,600 Eastern Ranges phase II Keshav Nagar Phadnis Properties 4Q 2015 5,200 Guardian The Palladium Kothrud Guardian Developers 1Q 2017 14,900 Nyati Evita Lohegaon Nyati Group 4Q 2016 4,500 Panchshil One North Hadapsar Panchshil Realty 4Q 2016 9,900 Sanctum Baner Kumar Properties 1Q 2017 12,000 Note: * As mentioned by developer ** Base selling price as quoted by developer 10 Research & Forecast Report | Feb 2014 | Residential | Colliers International
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, Santacruz, 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 Boat Club, R.A.Puram, MRC Nagar, 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. 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, Hadapsar, 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 11
Primary Authors: 62 countries on 6 continents United States: 140 Canada: 42 Latin America: 20 195 EMEA: 85 $2 billion in annual revenue 1.12 billion square feet under management 13,500 Surabhi Arora I Associate Director Research +91 124 456 7500 firstname.lastname@example.org Amit Oberoi I National Director Valuation & Advisory Services & Research email@example.com Sachin Sharma I Assistant Manager Research firstname.lastname@example.org For Residential Services: Mumbai: email@example.com Delhi / NCR: firstname.lastname@example.org Bengaluru: email@example.com Pune: firstname.lastname@example.org Chennai: email@example.com Kolkata: firstname.lastname@example.org professionals Technopolis Building, 1st Floor, DLF Golf Course Road, Sector 54, Gurgaon - 122 002 TEL +91 124 456 7500 About Colliers International Colliers International is a global leader in commercial real estate services, with over 13,500 Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, colliers.com Copyright © 2014 Colliers International. ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult 12 their professional advisors priorReport on Feb 2014 | Residential this report. International Research & Forecast to acting | any of the material contained in | Colliers
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