PROPERTY INSIGHTS
Subdued Trends, Cautiousness Continues
India Quarter 4, 2012
INDIA MARKET OVERVIEW
The GDP growth in Q2 2012 (July-September 2012)
declined to 5.3% as compared to 6.7% during the same
period last year. This is on account of lower growth in
manufacturing sector, which registered a growth of
only 0.8% in Q2 2012 compared to the 2.9% growth
during Q2 2011. The agricultural sector also registered
a lower performance and grew at 1.2% in Q2 2012 when
compared to a growth rate of 3.1% during same period
last quarter. Construction sector registered a robust
growth of 6.7% indicative of healthy activity in the
infrastructure space. Due to subdued domestic and
global economic environment and policy hurdles, the
GDP is expected to be in the range of 5.5%-6.0% for
fiscal year 2013. In its latest policy review in December
2012, RBI stated that inflation has been below the RBIs
projected levels over the past two months. However,
it still remains above their comfort levels and hence,
key policy rates remained unchanged. On a positive
note, the RBI did indicate that there is a reasonable
likelihood of easing policy rates in Q4 of Financial
Year 2013 (January- March 2013), even as its policy
stance remains sensitive to inflationary risks.
In the wake of prevailing subdued economic
sentiments, the real estate sector witnessed mixed
trends during the fourth quarter of 2012 (October
December). The office sector recorded absorption
of approximately 8.82 million square feet (msf) in
the top eight Indian cities , an increase of nearly 17%
over the previous quarter. However, year on year,
the top eight cities witnessed a 23% decline in office
space absorption in the wake of cautious approach
by companies in the view of slower economic growth.
Most of the companies are putting hold on their
expansion plans thereby committing less office space.
Total office space supply was noted at 7.86 msf, which
is 29% lower than the previous quarter. Annual supply
also declined by 10% year on year. During the fourth
quarter of 2012, none of the eight cities witnessed any
mall supply; though in the full year they did record
a supply of 10 malls admeasuring 3.44 msf. Demand
from retailers is still strong and expected to remain so
in 2013. The passage of the Bill for allowing 51% FDI
in multi-brand retail in the Parliament has boosted the
sentiments in the retail sector and hence, the cities
are likely to witness more retail transaction activities
in 2013. The residential markets remained subdued
as buyers remained cautious and were delaying
their buying decisions in expectation of a decrease
in mortgage rates; however a few micro markets
witnessed price escalations in both mid-end and high-
end segment. Developers continued to face liquidity
issues due to limited access to funding and reduced
/ slow off-takes in some cities and micro markets.
Additionally, a number of project launches have
1
been delayed and are facing cost increases due to
regulatory hurdles pertaining mainly to environmental
clearances at the national and state level. The numbers
of launches declined during the fourth quarter of 2012
by 19% compared to third quarter of 2012.
2
Trends & Updates
Economic Overview
The inflation numbers are showing signs of
moderation with figure coming down from 8% in
August 2012 to 7.45% in October 2012 and further
down to 7.24% in November 2012. The RBI will
evidently be viewing the trends in inflation before
taking a call on interest rates, which are expected
to show signs of reduction by end of January/early
February, albeit very slowly. Growth concerns, on the
other hand, have accentuated and the Government is
paying more attention to finding measures to promote
it. The year 2013 is expected to witness some positive
measures taken by both the Government and the RBI
to boost the economic growth.
The rupee has been falling since April and was stable
in July-August before strengthening in September
and October, as foreign funds flowed in, which was
helped further by the positive sentiment fuelled by
the policy announcements of the government relating
to FDI. However, it has started sliding again in the last
two months of 2012 and it appears that it will maintain
these levels in the short term at least.
As per Department for Industrial Policy & Promotion
(DIPP), FDI inflows in India during the second quarter
of the fiscal year (FY) 2013 (June-September 2012)
were registered at INR 463 billion, 54% lower
compared to the inflows during the same period last
year. This was on account of the global economic
conditions, especially in the EU and the US and further
compounded by domestic economic conditions and
policy hurdles. However, the FDI inflow in construction
development during the second quarter of FY 2013
saw a significant increase of approximately 82% as
compared to the same time period in FY 2012. This
is third consecutive quarter where the inflows have
shown an increasing trend. Approximately INR 16
EXCHANGE RATE MOVEMENT (INR/USD)
Source: RBI
GROSS DOMESTIC PRODUCT GROWTH RATE
Source: Central Statistical Organisation, Govt. of India
FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR
Source: Dept. of Industrial Policy & Promotion, Govt. of India
BSE REALITY INDEX
Source: BSE
3During the last quarter of 2012, Indias residential
market has seen a rise in capital values in few of the
micro markets of Bengaluru, Chennai, Mumbai and
NCR. While there was an average price increase of
7% (quarter-on-quarter) in mid-end properties,
capital values of high-end properties increased by
9% in the same period. NCR saw highest increase
in prices in the mid-end segment at 14% followed
by Bengaluru at 12%. Chennai on the other hand,
witnessed the highest average growth in values of
high-end segment at 10% followed by Mumbai at 9%.
Number of units launched in 4Q 2012, dropped by
19% and approximately 39,700 units were launched
across the top eight major cities during the quarter.
NCR continued to record the highest number of units
launched in 4Q 2012 and accounted for nearly 31%
of the total. Mumbai and Hyderabad also witnessed
healthy launches and contributed 19% and 13%
respectively to total number of units launched. These
cities witnessed the higher number of launches owing
to uncertainties over regulations (Development
Control Rules in Mumbai, G.O. 245 in Hyderabad and
issues pertaining to land acquisition in NCR) being
resolved and the advent of festive season.
The early signs of moderation of inflation coupled
with expected reduction in the interest rates and
improvement in the economic conditions is likely to
revive the demand in residential markets. Capital
values are likely to remain largely stable in the short
term. Launches are also expected to remain stable
in the wake of slow off-take of unsold stock in most
of the cities and cautious approach adopted by the
developers who are awaiting new policy proposals by
the Government.
Residential Trends
billion of FDI inflow was recorded in this sector during
the second quarter of FY 13.
The BSE Realty Index had showed an upward
trend in December 2012 as compared to September
2012 and registered a 14.3% q-o-q increase. The index
is expected to maintain this trend for at least the
first 2 months of 2013 until the presentation of the
Union Budget in March, which would then dictate the
direction thereon.
Source: Cushman & Wakefield Research
RESIDENTIAL CAPTIAL VALUES GROWTH INDEX
Source: Cushman & Wakefield Research
NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 4Q 2012
4Ahmedabad ......................................................................................5
Bengaluru .........................................................................................8
Chandigarh ....................................................................................... 12
Chennai ............................................................................................. 16
Hyderabad ........................................................................................20
Kolkata ..............................................................................................24
Mumbai ............................................................................................28
National Capital Region .................................................................33
Pune ..................................................................................................38
Index
5The residential sector in Ahmedabad witnessed
increased transaction activity during the festive
season. The total number of units launched increased
significantly compared to previous quarter. However, a
number of projects still have large unsold inventories.
Peripheral locations along the ring road and Sarkhej-
Ghandinagar highway witnessed large construction
activity mainly catering to the mid-end segment.
Investor activity in Ahmedabads residential market
has remained subdued over the past few quarters.
Ahmedabad witnessed office absorption of
355,000 sf, which is an increase of 12% over the
previous quarter. Absorption during the quarter
was concentrated in S.G. Highway contributing 98%
to total leasing activity. Approximately 598,000 sf
of Grade A supply was delivered during the fourth
quarter all of which was concentrated at S.G. Highway.
This is a clear indicator of the high level of commercial
activity at suburban locations in Ahmedabad. Rental
values for Grade A developments witnessed an
appreciation in the range of 3% -8% at S.G. Highway
and Prahladnagar.
With the large amount of vacant space in malls
across Ahmedabad no fresh supply is expected in
the coming future. Moderate leasing activity in major
malls excluding Alpha One has lead to stable rentals
for the quarter. Main street locations continue to
witness high level of enquiries from retailers.
AhmedabadMarket Overview
Trends & Updates
Ready Residential Property UpdatePrices for ready residential properties remained
stable across all micro-markets in the high-end and
mid-end segments for Ahmedabad. This is primarily
due to the high unsold inventories and low transaction
activity in the market.
Source: Cushman and Wakefield Research Note: The above values for high segment typically include units of 2,000-4,000 sf
Average Capital values High end (INR 000/sf)
Location 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
Satellite 4.0-4.8 4.3-6.0 4.3-6.0 4.3-6.0 4.3-6.0 4.3-6.0
Vastrapur 3.7-4.0 3.7-5.0 3.7-5.0 3.7-5.0 3.7-5.0 3.7-5.0
S.G.Highway 3.7-4.3 3.7-4.5 3.7-4.5 3.7-4.5 3.7-4.5 3.7-4.5
Prahlad Nagar 4.2-5.3 4.2-6.0 4.2-6.0 4.2-6.0 4.2-6.0 4.2-6.0
Ready Residential Property Values in Dec12
6New Residential Launches
New project launches in Ahmedabad during
the fourth quarter of 2012 were concentrated at
peripheral locations such as Vadsar and Kadi. Projects
launched during the quarter catered primarily to the
affordable segment and have witnessed high demand
from both end-users and investors. However, overall
end user activity in the city remained low resulting in
a substantial drop of new launches over the last two
quarters of 2012 when compared to previous year.
Source: Cushman and Wakefield Research Note: The above values for mid segment typically include units of 1,200-1,800 sf
Average Capital values Mid Segment (INR 000/sf)
Location Q4 2010 Q4 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
Satellite 2.8-3.8 2.8-4.3 2.8-4.3 2.8-4.3 2.8-4.3 2.8-4.3
Vastrapur 2.6-3.5 2.6-3.8 2.6-3.8 2.6-3.8 2.6-3.8 2.6-3.8
S.G.Highway 3.0-3.8 3.3-4.3 3.3-4.3 3.3-4.3 3.3-4.3 3.3-4.3
Prahlad Nagar 2.8-3.6 3.2-4.2 3.2-4.2 3.2-4.2 3.2-4.2 3.2-4.2
Under construction Residential Property Update
Commercial Office Sector
Most under construction activity is concentrated
in peripheral locations like S.G. Highway, Ring Road,
Bopal, Motera and Kalol. Large-scale construction
activities in the form of township projects are currently
ongoing, viz. Godrej Garden City, Shantigram, Sahara
City Homes and Applewoods. Out of the total units
expected to be completed in 2013 location along
the S.G. Highway and Ring road are expected to see
majority of the completions. With the large supply
along with the high unsold inventory stable capital
values is expected in the short term.
Office space absorption for the third quarter stood
at 355,000 sf. New commercial establishments in
Ahmedabad have shifted base to suburban locations
like S.G. Highway and Prahladnagar where the bulk of
the new construction activity is concentrated. Despite
higher rentals, occupiers prefer these locations
primarily due to the availability of quality options in
terms of large floor plates, efficient designs, build
quality, etc and access to better infrastructure. With
low transaction activity, rentals have remained stable
at Ashram Road, while on C.G. Road they witnessed a
3% appreciation due to low availabilities.
* Estimated and as per market information # Not disclosed
Project Name Developer Location Number of Units* Type Area of Units -in sf
Palm Land Ajmera Ajmera Realty Kadi Village 434 Villa ND#
Shuh Gruh Phase 2 Tata Housing Vadsar-Kalol Road 1,050 Apartments Studio: 2931BHK: 3841.5BHK: 457
7Capital values are expected to remain stable in
the near future since any increase in prices would
have a negative impact on demand for residential
units. Most new launches in the city are expected in
peripheral locations like Vadsar and Kadi catering to
the affordable and mid-end segment.
Ahmedabad is expected to witness new supply
of 766,000 sf in the first quarter of 2013. The large
upcoming supply along with the vacant space is
expected to exert a downward pressure on rentals.
Limited availabilities at Ashram road and C.G. Road
could lead to increase in commercial rentals at these
locations.
Limited new supply and availabilities in prime
main street locations could lead to rental growth
especially at C.G. Road and Satellite Road over the
next two quarters. Mall rentals in all micro-markets,
except Vastrapur which has low vacancy levels,
could witnesses a marginal decline due to the large
availability of vacant spaces.
Outlook
Retail Sector
The main street location of Satellite Road
witnessed an appreciation of over 7% in the quarter
due to healthy demand. Rental values at C.G. Road,
Law Garden and S.G. Highway continued to remain
stable due to limited transaction activity or churn at
the location. Low vacancies at Alpha One mall resulted
in rentals increasing by 20% during the fourth
quarter. Mall rentals in the other micro markets of S.G.
Highway, Drive-in road and Kankaria Lake remained
stable during the quarter due to high vacancy levels.
8BengaluruMarket Overview
Bengalurus residential realty market witnessed
a subdued demand trend for high-end properties
across most micro markets. In the high-end segment,
Northern locations such as Hebbal emerged as the
sole exception on account of persistent demand,
primarily from investors. In the backdrop of improving
market sentiments and festive season setting in, the
fourth quarter witnessed nearly 20% increase in
residential launches quarter on quarter. During the
quarter approximately 85% the total project launches
catered to mid-end segment and were predominantly
launched in the peripheral locations of South and
North Bengaluru.
The commercial realty market of the city saw a
supply of nearly 1.6 msf of Grade A office space in the
final quarter of 2012, despite almost 1.4 msf getting
deferred to 2013. There was an addition of around
580,000 sf of SEZ spaces, all of which was on Outer
Ring Road. Given the benefits of good connectivity
and growing residential catchments, majority of the
supply was concentrated in peripheral locations of
Outer Ring Road.
The retail realty market of the city saw no fresh
supply of mall space in the last quarter of 2012.
However, there was some churn in established malls
of the city, which created opportunities for retailers
trying to relocate or expand in these prominent malls.
On the other hand, brands favoring main streets
continued to scout for quality space options. The
overall mall vacancy level for the city experienced a
slight dip due to tight demand and supply scenario.
Trends & Updates
Ready Residential Property Update
High-end units in micro markets in Central
Bengaluru and both mid and high-end units in
Off-Central Bengaluru witnessed capital value
appreciation in range of 7%-9%, primarily due to
the lack of availability of residential units. Similarly,
non availability of land parcels for development in
South led to capital value rise of almost 25% in
the mid-end segment properties. Mid-end units in
the micro market of North-West recorded capital
value appreciation of nearly 5% on account of
lower availability further aided by the progress
in the NAMMA metro construction work. Given
balanced supply-demand dynamics, the rental
values remained stable across micro markets.
Ready Residential Property Values in Dec12
9High-end Segment
Central: Lavelle Road, Off Palace Road, Off Cunnigham
Road, Ulsoor Road, Richmond Road
South: Koramangala, Outer Ring Road, Bannerghatta
Road, JP Nagar
Off Central: Frazer Town, Benson Town, Richards
Town, Dollars Colony
East: Whitefield (villas)
North: Hebbal, Yelahanka, Jakkur, Devanahalli
Mid-end Segment
Central: Brunton Road, Artillery Road, Ali Askar Road,
Cunningham Road
East: Marathalli, Whitefield, Old Airport Road
South-East: Sarjapur Road, Outer Ring Road, HSR
Layout
South: Koramangala, Jakkasandra
South-West: Jayanagar, J P Nagar, Kanakpura Road,
Bannerghatta Road, BTM Layout
North: Hebbal, Bellary Road, Yelahanka, Dodballapur
Road, Jalahalli
Off Central*: Vasanth Nagar, Richmond Town,
Indiranagar
Off Central**: Cox Town, Frazer Town, HRBR, Benson
Town, etc
North-West: Malleshwaram, Rajajinagar
Key to Locations:
Average Capital values Mid Segment (INR000/sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
Central 5.8-7.0 5.0-6.0 5.5-7.0 6.0-7.5 6.0-8.0 6.0-8.0 6.0-8.0 6.0-8.0
East 2.7-3.1 2.4-2.7 2.7-3.1 3.2-3.8 3.8-4.8 3.8-4.8 3.8-4.8 3.8-4.8
South East 2.9-4.0 2.5-3.2 2.8-4.0 3.4-5.0 4.0-5.5 4.0-5.5 4.0-5.5 4.0-5.5
South 5.0-6.5 4.6-5.7 4.8-6.0 5.0-6.5 5.0-7.0 5.0-7.0 5.0-7.0 6.0-9.0
North 3.0-4.0 2.8-4.0 2.8-4.4 3.0-4.8 3.0-5.0 3.5-5.5 3.5-5.5 3.5-5.5
South West 2.8-4.2 2.7-3.9 3.2-4.5 3.6-5.0 3.6-5.0 4.0-5.5 4.0-5.5 4.0-5.5
Off Central* 3.5-6.0 3.7-5.7 4.0-6.2 4.5-6.7 4.5-7.0 4.5-7.0 4.5-7.0 5.0-7.5
Off Central** 4.0-6.0 3.3-5.7 3.8-6.2 4.3-6.7 4.0-6.5 4.5-6.5 4.5-6.5 5.0-7.0
North West 4.2-5.8 3.5-5.2 3.8-5.6 4.3-6.2 4.3-6.2 4.3-6.2 4.3-6.2 4.5-6.5
Source: Cushman and Wakefield Research Note: The above values for mid segment typically include units of 1,200-1,400 sf
Average Capital values High end (INR000/sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
Central 14.0-18.0 12.0-14.5 13.5-17.5 14.0-18.0 16.0-21.0 18.0-23.0 18.0-25.0 18.0-28.0
South 7.0-9.0 6.0-8.5 6.0-9.5 6.5-10.0 6.5-10.0 6.5-10.0 6.5-10.0 6.5-10.0
Off Central 6.5-7.5 5.0-6.6 5.0-7.0 6.0-8.5 6.0-8.5 6.0-8.5 6.0-8.5 7.0-9.0
East 6.5-9.0 5.6-7.0 6.5-7.5 6.8-8.0 6.0-8.5 6.8-9.0 6.8-9.0 6.5-9.0
North 6.0-8.0 5.5-7.0 5.5-7.0 6.5-8.0 6.0-8.0 6.5-8.0 6.5-8.2 6.5-8.2
Source: Cushman and Wakefield Research Note: The above values for high segment typically include units of 1,650 - 3,000 sf
10
Project Name Developer Location Number of Units* Type Area of Units - in sf
Embassy Lake Terraces Embassy Developers Hebbal 470 Apartments 3BHK: 3,500 to 6,000 4BHK: 4,400 to 4,6005BHK: 7,700 to 9,900
Godrej E.City Godrej Properties Electronic City 600 Apartments 2BHK: 964 to 1,1712.5BHK: 1,1423BHK: 1,449 to 1,625
Nikoo Homes Bhartiya Developers Thanisandra 2415 Apartments 1BHK: 760 to 9332BHK: 1,056 to 1,2763BHK: 1,595 to 1917
DLF Woodland Heights DLF Rajapura 1080 Apartments 2BHK: 908 to 1,213 3BHK: 1,221
Purva Whitehall Purvankara Developers
Sarjapur Main Road 192 Apartments 3BHK: 1,925 to 2,023 4BHK: 2,322 to 2,425
* Estimated and as per market information
During 2013, several under construction projects
in micro markets like Outer Ring Road and Sarjapur
Road are expected to be completed. Micro markets in
North also witnessed significant level of construction
activity backed by strong growth potential of this
location. Developing infrastructure, present and
upcoming commercial office space, proximity to
airport and availability of land parcels has fuelled the
development of residential catchments in this location.
Meanwhile, under construction properties in South-
East micro markets saw capital value appreciation in
range of 6%-9% given their proximity to IT hubs.
Under Construction Residential Property Update
The leasing activity in the last quarter of 2012
remained upbeat and resulted in higher absorption
levels. Total of 3.6 msf of leasing activity took place
out of which 3.4 msf was the net absorption during
this quarter. Transaction activity continued to be
dominated by the IT/ITeS sector amounting to over
60% of the net take up, followed by BFSI sector
accounting for nearly 9% of it. Around 45% of the
net absorption was accounted for in SEZ properties.
The overall rental rates exhibited a stable trend
with fluctuation in weighted average rentals for
select locations. For instance, micro markets like
CBD/Off-CBD witnessed increase in vacancy levels
of second generation spaces due to preference for
quality spaces despite the comparatively higher
rentals. This resulted in drop in rentals for CBD/
Off-CBD. On the other hand, in other micro markets,
occupiers preferred spaces with lower rent, which
in turn resulted in higher rents. Pre-commitment of
around 670,000 sf of office space took place this
quarter; majorly by IT sector companies in peripheral
locations of Outer Ring Road and North Bengaluru.
Commercial Office Sector
The new residential launches remained upbeat
during the last quarter of 2012 aided by the prolonged
festive season. The city witnessed new launches
in both mid and high-end categories. The launches
were primarily concentrated in peripheral locations
like Electronic City in South, Sarjapur Road in South-
East and Hebbal, Thanisandra in North. The proximity
to IT hubs has been instrumental in growth of the
residential catchment in and around peripheral
locations of South and South-East Bengaluru. On
the other end of the city, improving infrastructure,
proximity to Bengaluru International Airport and high
growth prospects of North Bengaluru has made the
micro markets in this location equally attractive for
both investors and developers.
New Residential Launches
11
The rental values for residential market are
anticipated to follow stable trend for most micro
markets during the next quarter as well. Micro
markets like South-East, North and East are expected
to witness demand for mid-end projects in wake of
healthy commercial activities. Due to the anticipated
demand, the capital values in these locations are
expected to witness an uptrend.
The office realty market of Bengaluru is
anticipated to see some momentum in transactions
on account of increased enquiry levels witnessed in
the last quarter of 2012. The vacancy levels for Grade
A properties will remain under pressure, which can
result in rentals moving north in locations like Outer
Ring Road and Whitefield.
Retail real estate market of the city is anticipated
to witness increased leasing activities aided by the
expansion plans of different brands. With expected
rise in volume, the main streets and malls will continue
to sustain the rental values. The city is anticipated
to record supply of 400,000 sf of new mall space
in Bannerghatta Road micro market during the first
quarter of 2013.
Outlook
The retail space rentals exhibited a stable trend
across most micro markets in both malls and main
streets. There was a minor appreciation in rental
values of main streets like Brigade Road, Commercial
Street and Jayanagar 4th Block, 11th Main in the range
of 1.5%-3.3%. On the other hand Vittal Mallaya Road
main street recorded a slight dip in rental values on
account of prevailing high rental values and some
retail spaces lying vacant. The main street of Vittal
Mallaya Road registered a remarkable hike of almost
58% in the rental values over the 2011 and hence, in
the final quarter of the year there was marginal price
correction.
Retail Sector
12
The residential sector in the upcoming peripheral
locations of the city has gained momentum in 2012
due to increase in demand from both end-users
and investors as most of the existing and upcoming
projects are in the affordable to mid-end segment.
A healthy absorption rate in group housing projects
indicates that the demand is now shifting towards
group housing, with a number of projects coming up
in this segment. The upcoming supply of residential
apartments in the city is mainly concentrated in the
areas like Zirakpur, Mohali and Dera Bassi catering to
the mid-end segment.
The commercial central business district of the city
is considered to be sectors 9 and 17 and it comprises
of Grade B developments. With limited scope of
development in main Chandigarh city and initiatives
provided by the Government to the IT/ITeS sector,
quality Grade A supply is concentrated in locations
such as Industrial Area Phase I, Manimajra, Panchkula
and Mohali. Demand for office spaces in the Tri-city
is dominated by IT/ITeS, telecom and manufacturing
companies who have consolidated and/or expanded
business operations due to cost arbitrage.
The main streets in the Tri-city are in the form
of sector markets which were established by the
government authorities. The established retail
precincts in Chandigarh include sectors 8, 9, 17,
20, etc. witnessing demand from both prominent
domestic and international brands. Sectors 9 and 17
have development in the form of Shop-Cum-Office
complexes with retail space on the ground floors and
small office spaces on upper floors. The prominent
real estate developers have their completed mall
projects in the city. Retail rental values across most
locations in Tri-city remained stable over the last six
months.
ChandigarhMarket Overview
Trends & Updates
Ready Residential Property UpdateThe main Chandigarh city and sectors 2,4,8,9 etc
of Panchkula offer ready residential properties in the
form of independent houses catering to high-end
segment. The locations like Zirakpur, Kharar, Mullanpur
and sectors 99,114,115,127 etc. in Mohali offer a mix of
both independent houses and apartments catering to
affordable and mid-end segment.
The capital values in main Chandigarh city have
stabilized over last two quarters with majority
of demand driven by end-users and speculative
investment activity is limited. On the other hand,
emerging peripheral locations namely Zirakpur,
Mohali, Panchkula and Dera Bassi have witnessed a
marginal appreciation of up to 7% during the same
period due to the demand being driven by a mix of
investors and end-users.
Ready Residential Property Values in Dec12
13
Average Capital Values High-end
Location 3Q 2012 4Q 2012
Chandigarh Sector: 2-11 160,000-180,000/sq yards 160,000-180,000/sq yards
Chandigarh Sector: 28 140,000-170,000/sq yards 140,000-170,000/sq yards
Panchkula 110,000-145,000 /sq yards 110,000-145,000 /sq yards
Manimajra* 13,000 /sf 13,000 /sf
Source: Cushman and Wakefield ResearchFor plotted developments in the range of 250 sq yards 1,000 sq yards*The above values for high-end segment apartments include units of 2,000-4,000 sf and villas include plot size of 125-1,000 sq yrds
Average Capital Values Mid range (INR 000/sf )
Location 3Q 2012 4Q 2012
Zirakpur 2.5-3.6 2.5-3.6
Mohali 3.0-4.0 3.0-4.0
Dera Bassi 3.0-3.2 3.0-3.2
Panchkula 2.7-3.3 2.7-3.3
Source: Cushman and Wakefield ResearchNote: The above values for mid-segment apartments typically include units of 1,600-2,000 sf
Several projects launched in 2012 were mainly in
the mid-end segment category. The new launches
constituted a mix of apartments and plotted
developments and were concentrated in micro
markets of Mohali and Mullanpur.
New Residential Launches
High-end Segment
Panchkula: Sectors 2,4,6,7,8,9,15
Mid-end Segment
Mohali: Sectors-114,115,127
Panchkula: Sector-20
Key to Locations:
Project Name Developer Location Number of Units* Type Area of Units
DLF Hyde Park Terraces DLF Mullanpur 300 Apartment 3BHK: 1,880 sf
DLF Hyde Park Estates DLF Mullanpur 100 Plots 250, 350 & 500 sq yrd
Tulip Tower & Carnation Tower
Ansals API Mohali 180 Apartment 3 BHK: 1,698 to 1,806 sf
Wave Estate- The Villas Wave Infratech Mohali 746 Villas 360, 550 & 1,000 sq yrd
Falcon View Janta Land Promoters Ltd
Mohali 540 Apartment 3BHK: 2,480 sf
Ralio Heights Star Realtech & Developers Ltd
Kharar 264 Apartment 2BHK- 1,250 sf3BHK- 1,650 to 2,150 sf
Note: The new launches data in table is of last six months* Estimated and as per market information
14
A number of new residential developments are
under construction in Zirakpur and towards Nada
Sahib, where Haryana Urban Development Authority
is coming up with new sectors for group housing.
Additionally, residential projects and townships by
local developers in locations such as Dera Bassi,
Kharar and Mullanpur are also coming up. The under
construction projects are likely to be completed during
2014 - 2015 with most of these projects belonging to
the mid-end segment.
Under construction Residential Property Update
The major demand drivers for commercial office
space are IT/ITeS companies. The demand remained
healthy for IT/ITeS developments in locations like
Manimajra while Mohali witnessed reduced demand
due to lack of infrastructure facilities. The rental
values of IT office developments is in the range of INR
20-75/sf/month while rental values for non-IT office
buildings, which mainly include sectors 7,8,9 and 17
are in the range of INR 100-120/sf/month.
The Rajiv Gandhi Chandigarh Technology Park
(RGCTP) Phase I is occupied by major IT/ITeS companies
such as Infosys, IBM Daksh, Tech Mahindra etc. In
addition to RGCTP, DLF Infocity is also an important
IT/ITeS development which houses companies like
eSys Info Services Ltd., Ericsson, and Agilent. The
other grade A office developments like Industrial
Area Phase 7, 8 and 8 B has witnessed prominent
electronics and telecom companies like Quark, Dell,
Bharti, Texas Instrument, Fujitsu etc. taking up space
while Industrial Area Phase 1 in outskirts of Chandigarh
has witnessed leading manufacturing companies like
Larsen & Tubro, Maruti Suzuki, Volvo, Jaguar taking
up space.
The sector-17 forms the centre of the city with
rental value as high as INR 1,000/sf/month. The
main street is dominated by a number of prominent
apparel & footwear category brands and premium
international brands which have established their
presence. In addition, sectors 8,9,26,34 and 35 are
also established main streets with rental values in the
range of INR 125-150/sf/month.
Mall developments admeasuring 1.64 msf are
present in peripheral location such as Zirakpur, Mohali
and Panchkula. Due to limited availability of quality
space on main streets, premium international brands
have established their presence in malls. The rental
values in malls are in the range of INR 100 to 180/sf/
month.
Commercial Office Sector
Retail Sector
15
The micro markets of Zirakpur, Mohali and
Mullanpur are expected to witness an increase in
demand from both investors and end-users due to their
location advantage which provides an easy access for
these locations to neighbouring cities and upcoming
IT/ITeS developments and up gradation of existing
infrastructure facilities. The approval of a metro rail
project by Government of Punjab with its first phase
extending from Capitol Complex Chandigarh to Sector
70 Mohali is expected to get operational by 2018. This
is expected to result in marginal appreciation of capital
values in select sectors of Mohali and Chandigarh.
The Industrial Area Phase 1 is expected to witness
increase in leasing activity as the location provides
quality Grade A commercial buildings, thus giving an
option to companies for further expansion in the city.
The rental values for commercial offices are likely to
strengthen in locations like Manimajra and Industrial
Area Phase 1 due to the increased demand while
Mohali is expected to witness a downward pressure.
The retail sector in the city is expected to witness an
upswing in supply with 2.06 million square feet of mall
space expected in 2013 in locations namely Mohali and
Industrial Area Phase-1.
With an increase in demand and limited availability
of quality space required by prominent luxury and
premium brands, the rental values are expected to
increase. Similarly rents in main streets like Sectors
17 and 8 are also expected to appreciate due to
consistent demand and limited availability. The factors
that are expected to act as a catalyst for growth of
retail sector include rapid economic growth from IT/
ITeS sector, increasing income levels leading to higher
disposable income and the cosmopolitan nature of Tri-
city due to non-IT and IT/ITeS office developments.
Outlook
16
Chennai residential market witnessed mixed
trends in the fourth quarter of 2012. While the number
of residential launches declined by 34% over the
last quarter, the capital values increased in most of
the locations across the city. Approximately 3,730
housing units were launched in this quarter, majority
(60%) of them catering to the affordable group. The
capital values increased in both mid as well as high-
end segment groups due to the strong demand. In mid-
end residential segment, locations like Rajiv Gandhi
Salai, T. Nagar and Kilpauk witnessed a marginal
appreciation of approximately 3%-5% quarter-on-
quarter in capital values. The capital values of high-
end residential segment in locations like Anna Nagar,
Nungambakkam and Boat Club witnessed a quarter-
on-quarter appreciation in the range of 4%-18%.
The commercial office market of Chennai witnessed
a total supply of approximately 2.5 million square
feet (msf) in the fourth quarter of 2012, majority of
which was Grade A IT office space. The net absorption
declined in this quarter by 81% over the last quarter
due to conservative market sentiments and was
recorded at approximately 250,000 sf.
The retail market witnessed no fresh mall supply
in the fourth quarter of 2012 as there was a delay in
upcoming malls in Velachery and Koyambedu, having
a total built-up area of over 1 msf. The rental values
remained stable in most of the main streets, except
for locations such as Purusavakam and Velachery
where there was a price appreciation of 10% and 8%
respectively over the last quarter due to shortage of
quality retail spaces.
ChennaiMarket Overview
Trends & Updates
Ready Residential Property UpdateThere was healthy demand for ready residential
properties in this quarter. The capital values of high-
end residential properties increased across most of
the markets. Locations such as Boat Club, Anna Nagar,
Nungambakkam witnessed a price appreciation of
10%-20% over the last quarter. The mid-end ready
residential properties witnessed stable capital values
in locations like Adyar, GST, Velachery, Mogappair,
whereas it showed an increase in the range of 3%-
5% in the upper price band in the remaining micro
markets. Two significant projects in Velachery and
Navalur were completed in this quarter.
Ready Residential Property Values in Dec12
17
Average Capital values High end (INR 000/sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
Boat Club 18.0-24.0 18.0-20.0 18.0-23.0 20.0-25.0 20.0-25.0 20.0-25.0 20.0-25.0 23.0-27.0
R.A Puram* 13.0-15.0 13.0-15.0 13.0-16.5 14.0-17.0 14.0-18.0 14.0-18.0 14.0-18.0 15.0-19.0
Besant Nagar NA NA NA 12.5-13.5 12.5-13.5 12.5-13.5 12.5-14.0 13.0-14.5
Kotturpuram NA NA NA 12.0-14.0 12.0-14.0 12.0-14.0 13.0-15.0 14.0-16.0
Adyar 5.5-10.0 5.5-9.5 8.0-12.0 11.5-13.5 12.5-14.0 12.5-14.0 13.0-14.5 13.0-14.5
Poes Garden** 14.5-20.0 14.5-18.0 14.5-20.0 17.5-24.5 18.5-25.0 18.5-25.0 18.5-25.0 18.5-25.0
Nungambakkam 13.0-16.0 13.0-16.0 13.0-16.5 13.0-17.0 14.0-18.0 14.0-18.0 14.0-18.0 17.0-20.0
Anna Nagar 6.0-9.0 6.0-9.0 7.5-10.5 8.0-11.5 9.0-12.0 9.0-12.0 9.0-13.0 12.0-14.0
Kilpauk 4.0-8.0 4.0-8.0 8.0-12.0 9.0-15.0 9.0-15.0 9.0-15.0 9.0-15.0 12.0-15.0
Source: Cushman & Wakefield Research Note: The above values for high segment typically include units of 1,800-4,000 sf *RA Puram also includes Alwarpet and Abhiramapuram**Poes Garden also includes Venus Colony and Kasturi Rangan Road
Average Capital values Mid Segment (INR 000/sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
Adyar 4.5-6.5 4.5-6.5 6.0-8.5 8.0-11.0 8.5-12.0 8.5-12.0 9.0-13.0 9.0-13.0
Rajiv Gandhi Salai (Perungudi)
2.5-3.6 2.5-2.8 3.5-4.5 4.0-5.5 4.5-6.0 4.5-6.0 5.0-6.0 5.0-6.3
Velachery 3.8-4.2 3.5-4.0 3.5-5.0 3.5-5.5 4.0-6.0 4.0-6.0 4.0-6.5 4.5-6.5
T Nagar 4.0-6.5 4.0-6.5 7.5-10.5 8.5-11.5 8.5-13.0 8.5-13.0 8.5-13.0 8.5-14.0
Mylapore NA NA NA 8.0-12.5 9.0-14.0 9.0-14.0 10.0-15.0 10.0-15.0
Mogappair NA NA NA 5.0-5.5 5.0-6.5 5.0-6.5 5.0-6.5 5.0-6.5
Kilpauk 4.5-6.0 4.5-6.0 6.0-8.0 7.5-9.5 8.0-10.0 8.0-10.0 9.0-11.0 9.0-12.0
Source: Cushman & Wakefield Research Note: The above values for mid segment typically include units of 1,000-2,000 sfThe time series have been adjusted to reflect the updated values
During the fourth quarter of 2012, approximately
3,730 housing units were launched in locations
such as OMR, Kattupakam, Manapakkam, Porur,
Palavakkam, Thiruvallur. The number of residential
launches in this quarter declined by 34% over the
last quarter. OMR witnessed the maximum number
of residential launches, recording 68% of the total
launches in this quarter. Approximately 60% of
launches during this quarter catered to the affordable
segment group, followed by mid-end segment group
with approximately 24% and the rest falling in the
high-end segment.
New Residential Launches
18
* Estimated and as per market information
Project Name Developer Location Number of Units* Type Area of Units - in sf
Innova P dot G Kattupakam 236 Apartments 1BHK : 593 to 834 2BHK : 913 to 1,342 3BHK : 1,476 to 1,935 4BHK : 2,032 to 2,439
Amora ICIPL Manapakkam 114 Apartments 2BHK : 964 to 1,0923BHK : 1,282 to 1,398
Sukriti Jain Housing & Con-struction Ltd
Mogappair 184 Apartments 1BHK : 506 to 850 2BHK : 900 to 1200 3BHK : 1,250 to 1,572
Central Park Heights Lancor Holdings Ltd Sholinganallur 51 Apartments 3BHK : 1,343 to 1,828
Melody Bajaj Properties Porur 48 Apartments 3BHK : 1,400 to 2,000 4BHK : 2,000 to 2,700
Le Nid Antony Projects Pvt Ltd
Urapakkam 18 Apartments 1BHK : 389 to 750 2BHK : 800 to 950 3BHK : 1,000 to 1,200 4BHK: 1,250 to 1,562
Mythreya Manju Foundations Thiruvallur 70 Villas 2BHK: 1,013 3BHK: 1,310 to 1,904 4BHK: 2,030
The Grange Landmark Construc-tion
Palavakkam 28 Villas 4BHK: 4,776 to 4,917
Sky Dugar Dugar Homes Ayanambakkam 243 Apartments 1BHK: 535 to 600 2BHK: 1,200 to 1,350 3BHK: 1,500 to1,800
Abov Akshaya Ltd Kazhipattur 31 Apartments 4BHK: 6,700
Aurum Villas Pacifica Companies OMR 406 Villas 3BHK: 1,200 to 2,099 4BHK: 2,100 to 3,240
Today Akshaya Ltd OMR 2,134 Apartments 2BHK: 612 3BHK: 1,246
Prices for under construction residential properties
increased in most of the locations in the fourth quarter
of 2012 on account of high demand. Several locations
along OMR such as Padur, Egattur, Navalur, Perungudi
witnessed a price appreciation of 5%-15% over the
last quarter due to the high demand, whilst there was
an appreciation of 3%-8% in locations like Velachery,
Besant Nagar, Porur, Kalpakkam. Many under
construction projects, especially in the peripheral
locations are witnessing delays in completion due to
difficulty in obtaining the required approvals.
Under construction Residential Property Update
In the commercial office market, micromarkets
such as Suburban-Perungudi Taramani, Suburban-
Guindy and Peripheral-Rajiv Gandhi Salai witnessed a
decrease in vacancy levels due to high leasing activity
and limited new supply. IT/ITeS sector continued to be
the key demand driver accounting for approximately
56% of net absorption followed by manufacturing
sector (24%). The overall Grade A rental values
remained stable in this quarter. However, due to higher
availability of second generation Grade A space, the
weighted average net rental values in micro markets
like Suburban-Guindy and Off CBD experienced
downward pressure.
Commercial Office Sector
19
The residential market may witness an increase
in overall demand in the coming months due to
the overall improving economic conditions and
upcoming infrastructural projects. The rentals
are expected to remain stable across most of
the locations. However, certain locations such as
Velachary and Kilpauk may witness an appreciation
in rentals due to the higher anticipated demand
on account of upcoming infrastructural projects.
The capital values for high-end locations like Boat
Club, R.A.Puram, Besant Nagar, Kotturpuram ,
Nungambakkam and Anna Nagar are expected to
rise on account of persistent demand and limited
supply.
In the commercial office market, Grade A
supply of approximately 1.5 msf is expected in the
next quarter in micro markets like Off-CBD and
Suburban-Perungudi Taramani. The rentals are
expected to remain stable in the short term across
most of the micro markets except for Suburban-
Guindy and Suburban-Perungudi Taramani
where rentals are expected to witness an upward
movement due to the healthy demand from IT/ITeS
and Manufacturing sectors.
The city is expected to witness fresh mall supply
of over 1.5 msf in the next quarter with majority of
it being concentrated in Velachery micro market.
Rentals are expected to be stable in most of the
main streets as well as malls. The vacancy levels
in malls are anticipated to remain low despite the
new mall supply in the next quarter due to the low
mall penetration in the city.
Outlook
In the retail market, the rentals increased by 8%
in Velachery over the last quarter due to the high
retail activity. Purusavakam being traditional retail
stretch retained its prominence due to high demand
and competitive rentals. The overall mall vacancy
remained stable due to the low transaction activity
and low availability of quality retail space in malls.
Retail Sector
20
HyderabadMarket Overview
The revision of land reservation clause
continued to positively impact the Hyderabad
residential market as it witnessed a spurt in the
residential launches in the fourth quarter of
2012. Approximately 5,200 units were launched
in key residential locations such as Gachibowli,
Madhapur, Kukatpally and Nallagandla in this
quarter of which 70% catered to the mid-end
segment. There was a surge in enquiries from
end-users as well as investors due to the festive
season and a large number of new project
launches. Capital values in the mid-end segment
witnessed a marginal appreciation of 1%-2% over
the last quarter in areas like Kukatpally, Miyapur,
Nizampet, Begumpet, Somajiguda. Capital values
in high-end segment have remained stable across
almost all locations except in Madhapur and
Gachibowli micro markets where there was a rise
due to their proximity to major commercial office
locations.
The office leasing activity in Hyderabad picked
up in the fourth quarter of 2012 with net absorption
being recorded at slightly below 1 million square
feet (msf), indicating an increase of about 89%
over the last quarter. However, the city witnessed
a meagre supply of approximately 252,000 sf due
to delays in several under construction projects.
There was no Grade A supply in the city for a
second consecutive quarter.
In the retail sector, enquiries for spaces
continued from domestic as well as international
retailers for their future expansion plans.
However, rentals remained stable in all main
streets as well as malls due to moderate demand
and no lease renewals. The upcoming locations
such as Habsiguda, the stretch from Chandanagar
to Madinaguda, L.B. Nagar and Dilsukhnagar
continued to gain prominence due to reasons such
as flexible leasing terms, favourable rentals and
proximity of good catchment areas.
Trends & Updates
Ready Residential Property Update
Due to the festive season, the fourth quarter of
2012 witnessed a surge in sales of the ready residential
property. Locations such as Kukatpally, Miyapur,
Nizampet witnessed a marginal appreciation of 1%-
2% over the last quarter in the mid-end segment
due to higher demand arising from the proximity of
these areas to the IT & financial districts of the city.
The capital values in high-end segment have remained
stable across almost all locations. Ready properties
witnessed many transactions in the mid-end segment
group in key residential locations such as Kukatpally,
Madhapur, Gachibowli, Miyapur, Nizampet. Few
significant projects in Kukatpally were completed
during this quarter. The rental values have remained
stable across almost all locations.
Ready Residential Property Values in Dec12
21
The fourth quarter of 2012 witnessed a huge increase
in number of residential launches. Nine projects with
approximately 5,200 units were launched in this quarter.
Approximately 36% of the launches were in Gachibowli
followed by Nallagandla (17%) and Kukatpally (13%). The
number of residential units launched in this quarter was
nearly four times of the third quarter. Approximately 70%
of the units launched catered to the mid-end segment.
The capital values of these projects are expected to
marginally appreciate over the next few months with
increasing demand. There are approximately 1,100 units
in the pre-launch stage in locations such as Tellapur,
Nallagandla, Sananth Nagar.
New Residential Launches
Average Capital values Mid Segment (INR 000/sf)
Location 2008 2009 2010 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
Banjara Hills 3.4-4.2 3.6-4.2 3.6-4.5 3.8-4.6 3.8-4.6 3.8-4.6 3.8-4.8 3.8-4.8
Jubilee Hills 3.4-4.0 3.5-4.0 3.7-4.0 4.0-4.2 4.0-4.2 4.0-4.2 4.0-4.2 4.0-4.2
Himayatnagar 2.6-3.0 2.7-3.0 2.7-3.5 2.7-3.7 2.7-3.6 2.6-3.6 2.8-3.6 2.8-3.6
West & East Marredpally 2.5-3.0 2.5-2.8 2.7-3.0 2.8-3.2 2.7-3.2 2.7-3.2 2.7-3.2 2.7-3.2
Begumpet, Somajiguda 2.5-3.0 2.6-3.1 2.8-3.5 2.9-3.6 2.8-3.5 2.8-3.5 2.8-3.5 2.8-3.6
Madhapur, Gachibowli 2.6-3.0 2.5-3.1 2.6-3.4 2.8-3.5 2.8-3.7 3.0-3.6 3.0-3.8 3.0-3.8
Kukatpally 2.4-2.8 2.4-2.9 2.7-3.2 2.9-3.5 2.9-3.5 2.9-3.5 2.9-3.5 2.9-3.6
Miyapur, Nizampet NA 1.8-2.5 1.8-2.5 2.4-3.0 2.3-3.2 2.2-3.3 2.2-3.3 2.2-3.4
Source: Cushman and Wakefield Research The above values for mid range typically include units of 1,200-1,400 sf
Average Capital values High end (INR 000/sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
Banjara Hills 6.5-7.1 5.8-6.5 6.0-7.2 6.4-7.5 6.4-7.5 6.5-7.5 6.5-7.5 6.5-7.5
Jubilee Hills 6.5-7.1 5.5-6.3 6.0-7.0 6.2-7.2 6.1-7.2 6.1-7.2 6.1-7.2 6.1-7.2
Himayatnagar 3.4-4.4 3.3-4.0 3.7-4.0 3.7-4.2 3.7-4.1 3.6-4.1 3.6-4.2 3.6-4.2
West & East Marredpally 3.3-4.3 3.3-3.8 3.5-4.0 3.6-4.3 3.6-4.3 3.6-4.3 3.6-4.2 3.6-4.3
Begumpet, Somajiguda 3.9-4.5 3.9-4.5 4.1-4.5 4.3-4.8 4.3-4.7 4.3-4.7 4.3-4.7 4.3-4.7
Madhapur, Gachibowli 3.8-4.4 3.5-4.3 3.8-4.9 3.9-5.3 4.0-5.3 4.0-5.3 4.0-5.3 4.1-5.3
Kukatpally 3.3-4.3 3.3-4.0 3.5-4.5 3.8-5.1 3.8-5.1 3.8-5.1 3.8-5.1 3.8-5.1
Miyapur, Nizampet NA 2.6-3.3 2.7-3.4 2.8-3.5 2.9-3.5 2.9-3.5 2.9-3.5 2.9-3.5
Source: Cushman and Wakefield Research The above values for high end typically include units of 1,650-3,000 sf
Project Name Developer Location Number of Units* Type Area of Units-in sf
Patel Smondos Patel Realty Gachibowli 380 Apartment 2 BHK : 9653 BHK: 1,120 4 BHK: 1,417
RV Bhaijikunj RV Nirman Kondapur 300 Apartment 2 BHK: 1,204 3 BHK: 1,473 4 BHK: 1,760
Ashvita Mahindra Lifespace Develop-ers
Kukatpally 664 Apartment 2 BHK: 1,218 to 1,261 3 BHK: 1,567 to 1,847 4 BHK: 2,018 to 2,082
Sri Hemadurga SivHills
BRC Infra Gachibowli 800 Apartment 2 BHK: 1,297 3 BHK: 2,637
My Home Abhra My Home Constructions Ltd Madhapur 387 Apartment 3 BHK: 2,300 to 3,455 4 BHK: 4,045 to 4,650
Aparna Sarovar Grande
Aparna Constructions Gachibowli 720 Apartment 2 BHK: 1,920 to 2,100 3 BHK: 3,675 to 3,745
22
* Estimated and as per market information
Under construction residential property prices
increased in the fourth quarter of 2012 on account
of growing enquiries in the festive season. The
maximum price appreciation in the mid-end segment
was witnessed in areas like Madhapur, Gachibowli,
Kukatpally where there was a price appreciation of 5%-
10% over the last quarter due to high demand arising
from proximity of these areas to major commercial
office locations. Construction activity has picked up
in peripheral locations such as Uppal, Habsiguda due
to better connectivity prospect brought about by the
onset of construction of the metro rail project.
Under construction Residential Property Update
In the office market, approximately 75% of net
absorption was pre-committed in SEZ properties
in the suburban micro market. The IT/ITes sector
continued to be the key demand driver, accounting
for nearly 90% of the total absorption in Q4 2012.
Many small size transactions were witnessed in the
Grade B developments in CBD, Off-CBD and Prime
Suburban micromarkets. The peripheral location
of Uppal also witnessed few transactions in this
quarter due to the availability of SEZ space as
well as favourable rentals. A total of 603,000 sf
was pre-committed during the quarter, majority of
which was in Grade B developments in suburban
locations of Gachibowli and Raidurg. The continued
shortage of Grade A space kept suburban Grade A
vacancies low at around 7%. Majority of the supply
in this quarter was concentrated in the suburban
location of Gachibowli. However, the rentals
remained stable across all the micro markets.
Commercial Office Sector
The city witnessed some new retailers from
categories such as Apparel and Food & Beverages taking
up spaces in premium main streets such as Banjara
Hills and Jubilee Hills. Economic considerations led to
relocation and downsizing in high streets by retailers
operating in categories like Automobile, Apparels and
Footwear. Due to the limited availability of mall space,
the overall mall vacancy remained low at around 1%.
Retail Sector
Aparna Cyberzon Aparna Constructions Nallagandla 900 Apartment 2 BHK : 1,245 3 BHK : 1,430 to 1,850
Aparna Hillpark Lakebreeze
Aparna Constructions Chandanagar 640 Apartment 2 BHK: 1,295 3 BHK: 1,610 to 2,335
Necklace Pride Salarpuria Sattva Off Tank Bund Road 434 Apartment 2 BHK: 1,280 to 1,342 3 BHK: 1,583 to 1,900
23
The residential markets are expected to witness
a moderate increase in overall demand in the next
3-6 months backed by the improving economic and
stable political conditions. Certain locations like
Miyapur, Kukatpally, Kondapur, Raidurg witnessing
infrastructural developments may witness a moderate
increase in capital and rental values. With the Outer
Ring Road stretch becoming operational, peripheral
locations like Shamirpet, Patencheru, Bachupally are
expected to witness the launch of some residential
developments. North-Western residential locations
such as Gachibowli, Kukatpally Nallagandla, Tellapur
are expected to continue witnessing launch of
residential projects.
In the commercial office market, the leasing activity
is likely to gain momentum in the next 3- 6 months
with improvement in the economic conditions and
market sentiments. Continued demand from IT/ITeS
sector and shortage of Grade A space are expected
to further reduce the Grade A vacancy. The city is
expected to witness supply of approximately 1-1.5 msf
in the next quarter, majority of it being in suburban
areas of Madhapur and Gachibowli. The rentals are
expected to remain stable in all the micro markets
in the short term. Upcoming peripheral locations
like Shamshabad, Pocharam and Uppal may witness
healthy absorption in the coming months.
The retail activity is expected to increase in
the next 3-6 months with the launch of two malls
of approximately 560,000 sf. New retailers are
expected to enter the city with new formats in the
coming months. The rentals are expected to increase
in high streets due to the increased leasing activity
on account of anticipated demand. Many residential
properties on main streets such as Jubilee Hills and
Banjara Hills are expected to be converted into retail
spaces in the coming months.
Outlook
24
KolkataMarket Overview
During fourth quarter, the residential market in
the city reflected stable trend in terms of project
launches and transaction activities. Despite
inherent and unmet demand, transaction activities
did not pick up significantly due to the uncertain
job market and high home loan rates. Across major
micro markets demand was primarily driven by mid-
end segment. Project launches remained moderate
as developers continued to launch projects in
anticipation of increased demand in the coming
quarters. Almost 50% of the new projects were
launched in the peripheral locations like Sonarpur,
Garia and Barasat due to the availability of large
land parcels.
Commercial office space market remained
lacklustre during the quarter as leasing activity was
recorded at approximately 150,000 sf, dropping
almost 9% from the last quarter. Supply remained
high as just over 1 msf of space was infused,
including fresh IT-SEZ stock. City vacancy level
for office markets increased marginally from last
quarter to just over 18%.
The retail sector in Kolkata reflected positive
sentiments with increased fresh enquiries and
demand, particularly from Lifestyle and Food &
Beverage brands. No fresh supply was infused
during the quarter. Mall vacancy remained stable
across micro markets as there was no churning of
retailers.
Trends & Updates
Ready Residential Property UpdateProject completions during the quarter mostly
comprised of small projects by local developers.
Almost 200 residential units were reported to be
completed across various micro markets. Prime
high-end ready properties by reputed developers
in prime residential micro markets in Prince Anwar
Shah Road, EM Bypass and New Town Rajarhat
witnessed appreciation up to 10%. Across most
micro markets, capital values remained stable due
to already high prices and slow transaction in the
past two quarters.
Ready Residential Property Values in Dec12
25
Key to Locations:
Average Capital values Mid Segment (INR 000/Sq.ft.)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
South 2.8-4.3 2.7-3.9 3.2-4.5 3.8-5.5 3.8-5.5 3.8-5.5 3.8-5.5 3.8-5.5
South Central 4.5-5.5 4.2-5.3 4.5-6.0 5.5-8.0 5.5-8.5 5.5-8.0 5.5-8.0 5.5-8.0
South East 2.5-3.0 2.4-2.8 2.5-3.2 2.8-4.5 2.8-4.5 2.8-4.5 2.8-4.5 2.8-4.5
North East 1.8-2.2 1.9-2.2 2.2-2.7 2.4-3.0 2.4-3.0 2.4-3.0 2.4-3.0 2.4-3.0
North 1.8-3.5 1.8-3.4 2.2-4.7 2.8-5.2 2.8-5.2 2.8-5.2 2.8-5.2 2.8-5.2
Source: Cushman and Wakefield Research NNote: The above values for mid-end segment typically include units of 1,500-2,000 sf
South*: Southern Avenue, Dover Lane
South-Central*: Ballygunge, Queens Park, Rainy Park,
Gurusaday Road, etc.
South-East: EM Bypass
South-West: Alipore Park Road, Ashoka Road,
Belvedere Road, etc.
Central: Lansdowne, Park Street
East: Salt Lake
North-East: Rajarhat
South**: New Alipore, Golf Green, Tollygunge, etc.
South-Central**: Hindustan Park
North: Kankurgachi, Lake Town, Jessore Road,
Ultadanga, etc.
Approximately 1,400 residential units were
launched during 4Q 2012, which is almost 71% lower
than the previous quarter. This is primarily because
no large project was launched during this quarter.
New launches were dominated by the local developers
during the quarter. Peripheral locations like Garia,
Nayabad, Bansdroni, Airport- Jessore Road and
Rajarhat witnessed almost 50% of the new launches.
Most of the new launches were priced between INR
2,350 to 3,800 per sf. EM Bypass witnessed the
launch of a significant high-end project marking the
joint collaboration of two major regional companies.
New Residential Launches
Average Capital values High end (INR 000/Sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
South 5.0 - 6.0 4.8-5.9 5.3-6.8 6.3-8.5 7.0-9.0 7.5-12.0 7.5-12.0 7.5-12.0
South Central 9.0-10.0 8.5-9.6 9.5-13.0 10.0-18.0 10.0-18.0 10.0-18.0 10.0-18.0 10.0-18.0
South East 4.5-5.7 4.5-5.7 4.5-8.0 5.8-9.2 5.8-9.2 5.8-9.5 5.8-9.5 5.8-9.5
South West 9.5-10.0 8.6-9.8 8.9-13.0 10.0-15.0 10.0-15.0 10.0-15.0 10.0-15.0 10.0-15.0
Central 7.5-8.5 7.2-8.1 7.5-9.2 8.3-10.2 8.3-10.2 8.3-10.2 8.3-10.2 8.3-10.2
East 4.0-5.0 4.0-4.7 4.0-4.9 4.5-5.5 4.5-5.5 4.5-5.5 4.5-5.5 4.5-5.5
North East 2.5-3.0 2.4-2.9 2.4-3.9 2.8-4.5 2.8-4.5 2.8-4.5 2.8-4.5 2.8-4.5
Source: Cushman and Wakefield Research Note: The above values for high-end segment typically include units of 2,000-4,000 sf
26
Project Name Developer Location Number of Units* Type Area of Units - in sf
Sapphire Vinayak Vinayak Group Ballygunge 16 Apartment 3BHK: 1,490-1,590
Aashiyana SP Group & Arush Homes
Beraberi, (Shike-herbagan, Kalipark, Rajarhat)
144 Apartment 2BHK: 8503BHK: 1,157
Jamuna Point Jamuna Developers Kaikhali, VIP Road 65 Apartment 3BHK: 1,2293BHK: 1,863
Shankar Tower Shankar Group Airport Gate 130 Apartment 2BHK: 7583BHK: 1,441
Capricon Royale Capricorn Royale NSC Bose Road Bansdroni
19 Apartment 4BHK: 1,905, 2,135
Vishnu Regency Vishnu Group Naskarpara Bans-droni
46 Apartment 2BHK: 1,052,11003BHK: 1,392, 1,404
Eden Pavilion Eden Group Shahid Kudiram Metro, Garia
96 Apartment 1BHK: 427,5672BHK: 840 to 9453 BHK: 1,228 to 1,302
Aqua Beaumont Olympia Group & Kankaria Holdings
E M Bypass 40 Apartment 3BHK: 3,2254BHK: 4,250Penthouses: 8,889, 7543
Eden Imperial Eden Group Ballygunge 23 Apartment 3BHK: 1,828 to 2,889
Arihant Viento Arihant Group Topsia 45 Apartment 3BHK: 1,539 to 1,7804BHK: 2,317, 2,402
Pelican Twins Pelican Group Nayabad 144 Apartment 2BHK: 965, 9703BHK- 1,330
Mounthill Essence Mounthill Realty Rajarhat 342 Apartments (with Du-plexes)
1BHK: 660,7002BHK: 996 to 14203BHK: 1,500 to 1,758
Bengal DCL DCL Rajarhat 320 Apartment 2BHK: 400 to 8003BHK: 1,203 to 1,553
* Estimated and as per market information
Large format under construction projects in
Rajarhat continued to witness slow construction work
as delay in infrastructure development in the area
affected sales activity. However, under construction
projects by reputed developers in prime upcoming
micro markets like Rajarhat New Town, EM Bypass
and Kankurgachi witnessed price appreciations of
up to 15%. Comparatively, north peripheral locations
like Birati, Barasat and south peripheral locations like
Garia and Patuli witnessed price appreciations of up to
5% compared to the last quarter. More than 20,900
residential units were under construction across
various micro markets and they are expected to be
completed in next 16 to 18 months.
Under construction Residential Property Update
The commercial market reflected a less vibrant
scenario as occupiers and investors took a cautious
approach resulting in weak transaction activities
during the fourth quarter. Total leasing activity
was noted at 154,735 sf, almost 9% lower than the
previous quarter. Overall vacancy rate of the city was
registered at just over 18%, recording an increase
from 15.7 % in the previous quarter due to significant
fresh Grade A supply.
Commercial Office Sector
27
Residential markets are expected to witness
increased transaction activity and new launches in
the upcoming quarter as developers are anticipating
better market conditions going forward. Also
during the first half of 2013, residential market in
Kolkata is likely to see increased demand for mid-
end and affordable segment properties resulting
into marginal appreciation. A significant share of
fresh launches at affordable rates will continue to
come up in peripheral locations like Airport, Birati,
Patuli and Sonarpur due to availability of land at
relatively cheaper prices.
Overall city vacancy in the office sector is
expected to remain stable in the short term and
transaction activity will continue to be moderate.
No major pre-commitment for office space is
expected in the city. Rental values in the CBD
are likely to increase primarily due to consistent
demand. However, rental values in peripheral
locations are likely to remain stable in view of the
large amount of fresh supply in the pipeline.
Retail markets will register increased demand
for prime malls and main street locations in Central
Business District. Approximately 1.2 msf fresh mall
supply is likely to get infused next year. Therefore,
mall rentals likely to be stable in the long term.
However, rentals in main street locations in CBD
will continue to witness appreciation due to
sustained demand.
Outlook
Retail markets in Kolkata exhibited positive
sentiments with increased demand. No fresh mall
supply was infused during the quarter. Due to low
vacancy at 5% in the already operational malls
coupled with lack of fresh supply, under construction
malls witnessed increased enquiries. Quite a few
lifestyle brands were noticed to take up space in the
main streets like Park Street and Camac Street at high
rentals. Rental values remained stable quarter on
quarter across major micro markets. However, prime
main streets witnessed 12% to almost 33% year on
year appreciation due to consistent demand.
Retail Sector
28
MumbaiMarket Overview
In the wake of the prolonged festive season,
developers launched several projects during
the fourth quarter of 2012. The city witnessed a
quarter on quarter increase of 34% in the number
of residential unit launches. Suburban locations like
Borivali, Kandivali and Dahisar witnessed launches
in the high-end segment. Parel in Central Mumbai
and Malad, Goregaon and Andheri in the Far North
micro markets also witnessed significant launches
in the form of slum rehabilitation projects.
The commercial office sector in Mumbai
witnessed absorption of 1.3 msf. Majority of the
absorption (1.1 msf) were in Grade A developments.
This absorption was concentrated in Lower Parel
(27%) and Powai (18%) along with peripheral micro-
markets of Thane (18%) and Thane-Belapur Road
(10%). Absorption was led by the IT/ITeS sector
followed by Logistics and Pharmaceutical sectors.
Rentals continued to remain stable across all micro-
markets except for in the Secondary Business
District of Bandra-Kurla Complex(SBD-BKC), which
witnessed an appreciation on account of the high
demand.
Enquiries from international and domestic
retailers remained active, especially for main street
locations during the fourth quarter of the year.
They mainly came in from the Food & Beverages
and Hypermarket segments. Retailers are looking
at selective expansion into key suburban and
peripheral main street locations in Mumbai.
Trends & Updates
Ready Residential Property Update
With limited quality stock and minimal projects
under construction the micro markets of South,
South Central, North and North East in Mumbai
witnessed healthy growth in high-end capital values
in the range of 5%-24%. With new launches at
higher capital values the micro markets of Central
and Far North Mumbai witnessed marginal increase
in prices. Mid-end capital values have remained
stable during the quarter in most of the micro
markets in the city.
Ready Residential Property Values in Dec12
29
South: Colaba, Cuffe Parade, Nariman Point,
Churchgate, etc.
South Central: Altamount Road, Carmichael Road,
Malabar Hill, Napeansea Road, Breach Candy, Pedder
Road, etc.
Central: Worli, Prabhadevi, Lower Parel/ Parel
North: Bandra (W), Khar (W), Santacruz (W), Juhu, etc.
Far North: Andheri (W), Malad, Goregaon, etc.
North-East: Powai
Key to Locations:
Approximately 7,500 units were launched
during the last quarter of 2012. Of these 75% of the
total launches were concentrated in suburban and
peripheral locations like Andheri, Goregaon, Borivali,
Kandivali and Thane. Majority of the newly launched
projects in these locations are designed to cater to
the high-end segment (60%). Given that there is a
substantial unsold inventory of units that fall within
the mid-range capital value, but their ticket size is
large and unaffordable for a majority of the buyers.
Many developers have responded by launching units
with smaller configurations and hence, smaller ticket
sizes in their projects to ensure sales.
New Residential Launches
Average Capital values Mid Segment (INR000/sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
South 27.0-34.0 28.0-37.0 30.0-40.0 30.0-40.0 30.0-40.0 30.0-40.0 35.0-45.0 35.0-45.0
South Central 34.0-43.0 35.0-45.0 40.0-48.0 43.0-52.0 43.0-52.0 43.0-52.0 43.0-52.0 43.0-52.0
Central 18.0-28.0 15.0-26.0 17.0-30.0 17.0-35.0 17.0-35.0 17.0-35.0 20.0-37.0 22.0-37.0
North 13.5-19.5 16.0-24.0 16.0-25.0 16.0-25.0 16.0-25.0 18.0-27.0 18.0-27.0 18.0-27.0
Far North 7.0-9.0 8.5-11.5 9.0-11.5 9.0-13.0 9.0-13.0 9.5-13.5 10.0-14.0 10.0-14.0
North East 6.0-7.4 6.4-8.5 6.5-8.5 6.5-10.0 6.5-10.0 7.5-11.0 8.5-12.5 8.5-12.5
Source: Cushman and Wakefield ResearchNote: The above values for mid-segment typically include units of 1,200 - 1,400 sf
Average Capital values High end (INR000/sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
South 43.0-55.0 42.5-58.0 43.0-60.0 45.0-65.0 45.0-65.0 45.0-65.0 45.0-65.0 48.0-70.0
South Central 47.0-67.0 42.0- 66.0 45.0-70.0 45.0-75.0 45.0-75.0 45.0-75.0 45.0-75.0 46.0-78.0
Central 33.0-53.0 34.0-55.0 35.0-55.0 32.0-54.0 32.0-54.0 32.0-54.0 32.0-54.0 34.0-58.0
North 27.0-31.0 22.0-30.0 24.0-32.0 24.0-32.0 24.0-32.0 24.0-32.0 25.0-35.0 28.0-40.0
Far North 9.0-13.0 10.0-16.5 11.0-16.5 11.0-16.5 11.0-16.5 12.0-18.0 12.0-18.0 12.5-18.0
North East 14.0-18.0 10.0-16.0 10.0-16.0 10.0-18.0 10.0-18.0 11.0-18.0 11.0-18.0 14.0-22.0
Source: Cushman and Wakefield ResearchNote: The above values for high-end segment typically include units of 1,650 - 3,000 sf
30
Project Name Developer Location Number of Units* Type Area of Units - in sf
Lodha Venezia Lodha Group Parel 480 Apartments 2BHK: 1,3003BHK: 1,700 to 2,000
Omkar Veda Omkar Group Parel 300 Apartments 2BHK: 1,250 to 1,3803BHK: 1,650
Crescent Bay L&T Realty Parel 320 Apartments 2BHK: 1,3603BHK: 1,8004BHK: 2,500
Levels Kanakia Malad East 296 Apartments 2BHK: 1,222 to 1,3503BHK: 1,6784BHK: 2,300
Kohinoor City Phase 2 Kohinoor Developers Kurla 120 Apartments 2BHK: 830 to 9623BHK: 1,439 to 1,975
Sheth Midori Sheth Developers Dahisar East 351 Apartments 1BHK: 630 to 7752BHK: 1,050
Godrej Platinum Tower 3 Godrej Properties Vikhroli 88 Apartments 2BHK: 8433BHK: 1,1104BHK: 1,746
JP Decks JP Infra Goregaon East
204 Apartments 2BHK: 1,2903BHK: 2,1204BHK: 2,5805BHK: 4,240
Runwal Garden City (Lily and Dhalia)
Runwal Developers Thane 136 Apartments 2BHK: 9053BHK: 1,200
Neumec Crescent Aria Neumec Group Worli 140 Apartments 2BHK: 1,4653BHK: 2,000 to 2,5004BHK: 4,000
Signature II Chaubey Realties Dahisar East 52 Apartments 1BHK: 6391.5BHK: 8192BHK: 1,107 to 1,134
Signature III Chaubey Realties Dahisar East 144 Apartments 2BHK: 1,134
Lodha Grandezza Lodha group Thane 144 Apartments 2BHK: 1,089 to 1,1343BHK: 1,368 to 1,557
Lodha Evoq Lodha group Wadala 180 Apartments 3BHK: 2,628 to 3,0424BHK: 3,141 to 4,662Duplex: 5,130 to 8,256Pent House: 5,787 to 8,867
DB Crown Tower 3 DB Realties Prabhadevi 284 Apartments 3BHK: 2,1004BHK: 2,845
Sai Proviso County Sai Proviso Panvel 108 Apartments 1BHK: 6632BHK: 921 to 1,046
Parinee Essence Parinee Developers Kandivali 160 Apartments 1BHK: 6722BHK: 856
Rivali Park CCI Projects Borivali 156 Apartments 2BHK: 1,2983BHK: 1,643
Runwal Anthurium Valintine
Runwal Developers Mulund 120 Apartments 2BHK: 1,070 2.5BHK: 1,185 to ,275 3 BHK: 1,425
Omkar Meridia Omkar Group Kurla 315 Apartments 2BHK: 1,2363BHK: 1,566 to1,608
Mayfair Mistique Mayfare Developers Ghatkopar 40 Apartments 2BHK: 1,2983BHK: 1,643
Rising City Hubtown, Marathon, Rajesh Lifespaces
Chembur 504 Apartments 2BHK: 1,2302.5BHK: 1,4753BHK: 1,5353.5BHK: 1,660
Ventana Hiranandani Group Thane 170 Apartments 1BHK: 650
Rustomjee Azziano F wing
Rustomjee Thane 96 Apartments 2BHK: 1,135 to 1,209
Marathon Nexworld Marathon Group Dombivali 300 Apartments 1BHK: 6002BHK: 1,000
Mayfair Hillcrest Mayfare Developers Vikhroli 84 Apartments 2BHK: 1,0003BHK: 1,3004BHK: 2,200
31
Gundecha Montego Gundecha Developers Andheri 36 Apartments 1BHK: 4442BHK: 702
Satellite Glory Saltellite Group Andheri 35 Apartments 3BHK: 2,0964BHK: 2,416
Marathon Nextown Marathon Group Dombivali 216 Apartments 1BHK: 600 to 6752BHK: 1,050
Agarwal Vrindavan Township
Agarwal Group Virar 252 Apartments 1BHK: 630 to 6852BHK: 905 to1,0103BHK: 1,230 to 1,365
34 east Parinee Developers Juhu 40 Apartments 4BHK: 2,900
11 west Parinee Developers Juhu 40 Apartments 3BHK: 2,245
Bhagtani Riyo Jaycee Home Mira Road 490 Apartments 1BHK: 600 to 7001.5BHK: 8402BHK: 900
Bhagtani Sapphire Jaycee Home Dahisar 92 Apartments 1BHK: 6752BHK: 1,112
Grandioso INR Group Kalina 56 Apartments 2BHK: 1,5303.5BHK: 2,0404.5BHK: 2,530
Vedic Heights MLH Group Kandivali 324 Apartments 1BHK: 6002BHK: 800
Swaroop Atlantis Swaroop Developers Bhandup 147 Apartments 2BHK: 1,2003BHK: 1,650
Dosti Ambrosia New Tower
Dosti Group Wadala 132 Apartments 2BHK: 1,268 to 1,3103BHK: 1,539 to1,627
Mayfair Meridian Mayfare Developers Thane 120 Apartments 2BHK: 720 to 1,000
Goodwill Paradise Phase II
Goodwill Developers Kharghar 26 Apartments 3BHK: 1,720 to 1,750
Shah Lotus Shah Developers Vashi 27 Apartments 4BHK: 2,700
Yonne Nahar Amrit Shakti Chandivali 110 Apartments 2BHK: 1,4003BHK: 1,850
Neev Amberwood Neev Group Andheri 176 Apartments 2BHK: 1,2243BHK: 1,719
Desia Oceanic Spark Developers Worli 36 Apartments 3BHK: 2,0754BHK: 2,691 to 2,795Duplex: 4,800 to 5,000
Tridhaatu Prarmbh Tridhaatu Realty Chembur 52 Apartments 1BHK: 7522BHK: 955
Kamala Estelle Kamala Landmarc Wadala 60 Apartments 1BHK: 8102BHK: 1,050
Milano Lodha Fiorenza Lodha group Goregaon 50 Apartments 4BHK: 3,159 to 3,1955BHK: 5,373
* Estimated and as per market information
Suburban and peripheral locations like Goregaon,
Malad, Thane, Kharghar and Mira Road witnessed
healthy construction activity during the quarter.
During the festive season, a number of developers
offered various incentives and attractive payment
timelines to attract potential customers. With little
land available for development, developers are
increasingly executing slum rehabilitation projects to
bridge the shortfall of residential units.
Under construction Residential Property Update
32
Lack of transactions and limited churn resulted
in stable rentals for prominent main-street
locations like Linking road, Colaba, Kemps Corner,
Fort and Lokhandwala. Established mall locations
of Lower Parel, Malad, Goregaon, Mulund, Vashi
and Thane have limited availabilities of mall space.
Despite low vacancy levels in these malls, as a
result of the low transaction activity and limited
churn, the mall rentals continued to remain stable
during the fourth quarter of the year. Lack of
quality supply is a major concern for growth of the
retail industry in Mumbai.
Mumbai witnessed a supply of 1.2 msf, which was
concentrated in peripheral locations of Thane and
Thane-Belapur Road. Majority of the new supply
(63%) was in the form of IT developments. With
absorption remaining healthy during the quarter,
vacancy slid to under 20% at the end of the year.
With a large quantum of supply and substantial
amount of vacant space available rentals remained
stable during the quarter. BKC which has witnessed
healthy demand for corporate offices witnessed a
marginal increase in Grade A rentals.
Retail Sector
Commercial Office Sector
With capital values maintaining their high levels
and subdued demand, no further increase in prices
is expected in the near term. Further, as a result
of high input costs, developers are not expected
to go in for any price cuts in the coming months.
However, new launches in the form of rehabilitation
and redevelopment projects with smaller ticket
sizes are expected to be healthy in the new year.
Fresh supply of 2.2 msf of office space is
expected to be completed during the first quarter
of 2013. Absorption is also expected to remain high
with a number of deals currently in the pipeline.
However, the large supply expected to become
available will keep commercial rentals stable
across Mumbai.
Transactions as a result of churn in established
mall locations like Lower Parel, Malad, Goregaon
and Vashi are expected to happen at higher
rentals due to low availabilities in these micro
markets. Just one mall is expected to be delivered
in 2013 at Thane. Preference for main street
locations by both international and Indian retailers
for further expansions remains high. This could
lead to increase in rentals at key locations like
Lokhandwala Andheri, Colaba and Linking Road.
Outlook
33
Given the weak sentiments prevailing in the
economy, the demand and supply in the residential
market continued to witness slow growth across
most micro markets in NCR during the last quarter
of 2012. In terms of upcoming supply, projects
were launched mainly in the peripheral locations
of Noida having approximately 68% share of units
launched and the remaining share in Gurgaon. More
than 90% of the total new units launched cater to
the mid-end and affordable segments. With the
cautious buyer sentiment and slowdown in supply,
prices of ready property did not move significantly
across NCR micro markets during the quarter.
During the 4Q 2012, absorption for the office
market was recorded at approximately 1.4 msf,
which is nearly 26% higher than the previous
quarter, given the rise in leasing activity with
occupiers opting for expansion and consolidation.
Demand was mainly concentrated in Gurgaons CBD
(Cyber City and M.G. Road) along with peripheral
locations such as Sohna Road and Golf Course
Extension Road, which together witnessed a
significant share of close to 62% of the total leasing
activity in the NCR region. Rental values witnessed
an appreciation in the range of 1%-6% across micro
markets during the fourth quarter.
With the slow pace of construction along with
completion deferments, no fresh mall supply was
witnessed in NCR during 4Q 2012. Due to moderate
leasing activity in only select malls, rental values
remained stable across all micro markets during
the last quarter of 2012. For main streets, rentals
remained stable for most micro markets with DLF
Galleria in Gurgaon being an exception as it recorded
a quarter-on-quarter rental appreciation of 9.5%
due to high demand from domestic retailers.
National Capital RegionMarket Overview
Trends & Updates
Ready Residential Property Update
Prices of ready properties across the micro markets
of Gurgaon and Noida have witnessed an appreciation
in the range of 4%-15% during the quarter given the
rise in input costs for developers and the increased
price points of newly completed projects. At the same
time, in Delhi, prices across most markets were stable
with marginal fluctuations given the slowdown in terms
of transaction activity and high unsold inventories.
Ready Residential Property Values in Dec12
34
Average Capital values Mid range (INR 000/sf.)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
South East 14.0-16.0 14.5-16.5 15.0-20.0 15.0-28.0 20.0-30.0 20.0-30.0 20.0-30.0 25.0-30.0
South Central 18.0-20.0 18.5-20.5 20.0-23.5 25.0-30.0 25.0-30.0 25.0-30.0 25.0-30.0 25.0-30.0
Gurgaon 3.8-5.2 4.0-6.5 4.5-7.5 5.0-9.0 6.5-9.0 6.5-10.0 6.5-9.0 6.8-10.5
Noida 3.0-4.5 3.2-5.5 3.8-5.6 4.2-5.8 4.5-6.0 4.5-6.0 4.2-5.8 4.3-6.2
Source: Cushman & Wakefield ResearchNote: The above values for mid range segment typically include units of 1,600-2,000 sf
High-end Segment
South-West: Shanti Niketan, Westend, Anand Niketan,
Vasant Vihar
South-East: Friends Colony East, Friends Colony West,
Maharani Bagh, Greater Kailash - I, Greater Kailash II.
South Central: Defence Colony, Anand Lok, Niti Bagh,
Gulmohar Park, Hauz Khas Enclave, Safdarjung
Development Area, Mayfair Gardens, Panchsheel Park,
Soami Nagar, Sarvodaya Enclave.
Central: Jorbagh, Golf Links, Amrita Shergil Marg,
Aurangzeb Road, Prithviraj Road, Sikandara Road, Tilak
Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar,
Nizamuddin, Tees January Marg, Chanakyapuri.
Mid-end Segment
South-East: New Friends Colony, Kalindi Colony, Ishwar
Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave.
South Central: Uday Park, Green Park, Saket, Asiad
Village, Geetanjali Enclave, Safdarjung Enclave,
Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar.
Key to Locations:
The overall number of projects that got launched
in NCR during 4Q 2012 increased by approximately
11% in comparison to the previous quarter. The new
project launches were concentrated in micro markets
of Gurgaon and Noida, namely in Dwarka Expressway,
Southern Periphery Road, Noida Extension and Greater
Noida. Most of these projects cater to the demand of
the mid-end segment with a base price in the range of
INR 3,500-6,400 per sf in Noida and INR 4,200-9,000
per sf in Gurgaon. Developers also continued to launch
co-branded residences in the luxury segment across the
city. The fourth quarter has seen a few high-end and
branded residences (approximately 8% of total units)
launched that are targeted at HNIs.
New Residential Launches
Average Capital values High end (INR 000/sf)
Location 2008 2009 2010 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012
South West 28.0-33.0 29.0-34.0 36.0-43.0 42-50.0 50.0-60.0 50.0-60.0 50.0-60.0 50.0-60.0
South East 19.0-23.0 21.0-24.0 24.0-30.0 25.0-35.0 25.0-40.0 25.0-40.0 25.0-40.0 25.0-45.0
South Central 20.0-23.0 21.0-25.0 25.0-32.0 27.0-40.0 27.0-40.0 27.0-40.0 27.0-40.0 27.0-50.0
Central 45.0-50.0 40.0-45.0 50.0-57.0 50.0-65.0 60.0-80.0 60.0-80.0 60.0-80.0 60.0-80.0
Gurgaon 5.2-11.0 5.3-12.5 6.2-18.0 8.5-21.0 9.5-25.0 10.0-26.0 9.5-30.0 10.5-32.0
Noida 5.2-6.2 5.2-6.5 5.5-7.0 5.5-7.5 5.8-8.0 5.8-8.0 5.8-8.0 6.2-8.1
Source: Cushman & Wakefield ResearchNote: The above values for high end segment typically include units of 2,000-4,000 sf
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Project Name Developer Location Number of Units* Type Area of Units -in sf
Oyster Grande Adani & M2K Sector 102, Dwarka Expressway, Gurgaon
760 Apartment/ Penthouse
3BHK: 1,689 to 4,548 4BHK: 4,7505BHK: 5,826 to 7,283
ATS Triumph ATS Sector 104, Dwarka Expressway, Gurgaon
420 Apartment 3BHK: 2,290 4BHK: 3,150
Prateek Edifice Prateek Group Sector 107, Noida 420 Apartment 3BHK: 2,070 to 2,5004BHK: 3,300 5BHK: 4,300
Brys Buzz Brys Group Sector 150, Noida 260 Apartment/ Duplex 3BHK: 3,200 to 4,7004BHK: 4,300 to 5,1005BHK: 6,300 6BHK: 6,700 to 8,650
Visionnaire Homes BPTP Sector 70 A, Southern Peripheral Road, Gurgaon
45 Villas Villas: 4,700 to 8,740
The Eiffel Krrish Group Gwal Pahari, Gurgaon Faridabad Road, Gurgaon
14 Duplex 5BHK: 15,000
Maceo (Phase II) Anant Raj Sector 91, Gurgaon 370 Apartment 2BHK: 1,195 to 1,2853BHK: 1,708 to 2,113 4BHK: 2,451
Wood Shire M3M Sector 107, Dwarka Expressway, Gurgaon
300 Apartment 2BHK: 1,350 to 1,550 3BHK: 1,960 to 2,3604BHK: 2,700
Spring homes Orris Infra Sector 85, Gurgaon 560 Apartment 2BHK: 1,200 3BHK: 1,700 to1,9104 BHK: 2,300
The Summit (Phase II)
Godrej Properties Sector 104, Dwarka Expressway, Gurgaon
70 Apartment/ Penthouse
2BHK: 1,269 to 1,446 3BHK: 1,647 to 1,8164BHK: 2,324 to 4,500
Monde de Provence Krrish Group Gwal Pahari, Gurgaon Faridabad Road, Gurgaon
176 Apartment/ Penthouse
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