Price Recommendation for Proposed Premium Residential ... · Price Recommendation for Proposed...
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Price Recommendation for Proposed
Premium Residential Apartment Project
along Kanakapura Main Road,
Bangalore, Karnataka, India
SmartOwner Services India Private Limited
Kanakapura Road Bangalore
For
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Site Location Along Kanakapura Main Road (NH-209)
Approximate
Site Area
5.0 acres
Envisaged
Development
Premium Apartment Development
Access Accessible through a 25 m wide Road
Salient Features of the Location
Note: Considering the confidentiality of the location, tentative location as indicated by the Client is considered for the
purpose of this assessment
MG Road (CBD) 35-45 minutes
Electronic City (Via NICE Corridor) 25-30 minutes
Outer Ring Road (ORR) 10-15 minutes
Kempegowda International Airport 60- 80 minutes
Travel Time from Major Landmarks
Location of the Micro-Market of the Proposed Project
View of the Access Road - National Highway -209
Metro Line Under Construction- Along
Kanakapura Main Road
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Site
Surroundings
� Strategic located along NH-209.
� Improved Connectivity (ORR / NICE & Upcoming Metro)
& good educational facilities triggered real estate
development in the surroundings
� Growing real estate market with presence of several
graded apartment projects. Notable projects are Prestige
Falcon City, Purva Highlands, The Magic Faraway Tree,
Mantri Royale, Brigade Omega, Nitesh Caesar's Palace,
Sobha Forest View and Century Central etc.
� Significant real estate growth potential for residential
sub-sector as the micro market is located close
Bannerghatta and Outer Ring Road (ORR) where
significant no. of IT&ITES and also Non-IT&ITES offices
are located.
Employment
Hub
� Bannerghatta Road & ORR (less than 5.0 km)
Education &
Healthcare
� Yashaswi International School, KSIT Engineering College,
Shankara Arts, Dayananda Sagar College of Engineering,
City Engineering College, Yellama Dasappa Institute of
Technology, Jnana Sweekar PU College, Swathi Galaxy
Hospital, Sri Sairam Hospital and Rajnandini Hospital etc.
Retail � Metro Cash and Carry, Big Bazaar, Spencer's, Bangalore
Central, Shoppers Stop, Upcoming Galleria Mall
Location and Surroundings
Dayananda Sagar College
KSIT Engineering College
Jnana Sweekar PU College
Sri Sairam Hospital
Yellama Dasappa Institute
of Technology
City Engineering College
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Catchment DelineationGeographic Spread of Catchment Area for Project Site
Projects Developer Name Launch year Completion year Units (Nos.) Price (INR per sq. ft.) Absorption Rate
The Magic Faraway Tree Total Environment 2010 2015 76 9,000 85%
Sobha Forest View Sobha Developers 2011 2016 973 6,200 85%
Mantri Serenity Mantri Group 2012 2016 1492 5,990 77%
Prestige Falcon City Prestige Group 2014 2016 500 6,500 25%
Sobha The Park & The Plaza Sobha Developers 2009 2018 657 7,300 10%
Century Central Century Real Estate 2013 2016 187 5,400 78%
Micro-Market Summary – Apartment Development
Present Inventory � 59 projects with total supply of about 23,606 units. 34 projects are completed with 100% absorption of
which almost 82% of the stock is from Grade-A developers.
� 23 ongoing projects have inventory of 9,848 units of which 70% of the supply is from Grade-A developers.
Mantri Serenity, Sobha Forest View, HM World City, Purva Highlands, Prestige Falcon City and Sobha Arena
are some of the major upcoming large scale developments in the immediate surroundings.
Sales Performance � Average price across all grade is about INR 5,500 per sq. ft. Recently launched Grade-A projects are in price
range of INR 5,800-7,300 per sq.ft.
� Impressive 66% absorption till date (from 2012) with unsold inventory of 3,127 units.
� Capital Value over the last 5 years of Grade-A projects have witnessed 9% Compounded Annual Growth
Rate (CAGR) and 5% for Grade -B projects.
� Average Car Parking Charges: INR 200,000 per unit (Grade-A).
� Club Membership charges ranges between INR 250,000- 300,000 per unit (Grade-A).
� Sales Velocity- average of 60 units per project per year, growing at about 18% every year.
Revenue Upside
Potential
� Other charges like Car Parking, Floor Rise Premium, Preferential Location Charge (PLC), Deposits, Statutory
Levies and Taxes are loaded over the base price which varies between 15-25%. This percentage depends
upon the size of development, developer and amenities provided.
Inventory of Existing Projects
Competitive Projects considered for Price Benchmarking
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Mapping of Existing Projects - Apartment Development
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Benchmarking and Price Recommendation
Premium Factor Discount FactorRecommended Base Selling Price Range for the
Upcoming Premium Apartment Project is
INR 6000-6200 per sq. ft.
Notes
Other charges like PLC, Club Membership Charges, Car Parking, Floor Rise
Premium, Deposits, Statutory Levies and Taxes. These charges are loaded over
the base price and it varies between 15-25% of the apartment pricing depending
upon the size of development, developer and amenities provided.
Attributes Project Site Prestige Falcon City Sobha The Park &
The Plaza
Accessibility &
Connectivity
Located along Kanakapura
Main Road and accessible
by 25 m wide road.
Located along Kanakapura Main
Road and accessible by 25 m
wide road
Located off from Kanakapura Main
Road and accessible by 15 m wide
road.
Type of development Premium Residential
Development
Large scale integrated
development with various asset
classes
Premium Residential Development
Status of the Project Proposed & Pre-Launch Proposed & Pre-Launch with
Sales
Proposed & Pre-Launch with Sales
Size of Development 5.0 Acres with 350 Units 41 acres with 2,520 units.
Note: as of now 500 units are
available for booking
10.76 Acres with 657 Units
Unit/ Format Option 2 BHK, 2.5 BHK & 3 BHK 2 BHK, 2 BHK + study, 3 BHK &
4 BHK
2 & 3 BHK
Amenities & Facilities Excellent amenities and
facilities
Excellent amenities and facilities Excellent amenities and facilities
Present Base Selling Price INR 6,500 per sq.ft. INR 7300 per sq.ft.
Disclaimer
The Client has appointed Jones Lang LaSalle (‘JLL’) to offer independent opinion on price recommendation based on the location of the Project Site, its micro-market dynamics,
competitive benchmarking, etc. based on the proposed project configuration and positioning brief given by the Client.
JLL is the Indian operations of JLL (NYSE: JLL), the only real estate money management and services firm named to FORTUNE magazine's "100 Best Companies to Work For" and
Forbes magazine's "400 Best Big Companies". It is the premiere and largest real estate Services Company in India, with an extensive geographic footprint across several cities and staff
strength of over 5,650. The company provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, consultancy,
transactions, project and development services, integrated facility management, property management, capital markets, residential, hotels and retail advisory. For further information,
please visit www.joneslanglassale.co.in
This document is prepared for the sole use of the Client and no responsibility and/or liability is accepted to any other party for the whole or any part of its contents. The information in this
document reflects prevailing conditions and JLL’s view as of this date, all of which are, accordingly, subject to change. In preparing this document, JLL has relied upon and assumed,
without independent verification, the accuracy and completeness of all information available from public sources. Markets being dynamic, should any information or projection changes in
the future or do not prevail, JLL shall not accept any liability for the same.
JLL is providing this opinion for information purposes only. JLL would like to highlight that this document does not take into account the individual circumstances, financial situation,
investment objectives or requirements of a potential investor or any other person. It is intended to be used as a guide only and does not constitute advice, including without limitation,
investment, legal, tax and financial or any other type of expert advice. Any recipient of this document, must, however, make its independent assessment of the various investment options
with regard to the relevance and the adequacy of the information contained herein, and should make the investigations it deems necessary. Neither JLL nor any of its officers or employees
accept any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.
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