Resized (2) - KF Investment Advisory Report 2012

lÎl'1LIKI'lII^1lI
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lnvcslmcnlAdvscrykcpcrlIcvcmbcr2012
This report LII^1LIV the
top residential
destinations in the
country from the
investment point of view
over the next VI
years (2013-2017)
Balancing return with the associated risk is the
focal point of any investment decision. Equity and
debt are considered to be the mainstream asset
casscs. hRwcvcr, lhc lradcR bclwccn rclurn
and risk in both these asset classes is strikingly
dcrcnl. whc cquly as an asscl cass s
associated with high returns albeit with a greater
risk score as measured by volatility, a relatively
stable debt investment comes with a larger
compromise on returns.
Real estate, the third mainstream asset class,
Rcrs lhc bcsl cRmbnalRn RI rclurns and rsN.
From the perspective of return, real estate
investment in India has garnered superior returns
in comparison to other asset classes over a long
term. Further, an investment in residential
INVESTMENT
advisory REPORT
Indias Residential Destinations
INTRODUCTION
property is generally done with leverage in the
form of a housing mortgage. This leverage further
increases the potential for earning higher returns
since the initial equity contribution is a fraction of
the property value.
From the perspective of risk, property investment
fares better because asset price generally
remains stable. It has been established that an
investment in real estate based on sound
research can seldom go wrong. In the sense that
in comparison to an asset class like equity which
is dependent on several factors related to the
undcryng busncss Nc prRlably, cvcragc
and corporate governance, a real estate
investment is based on the underlying asset. A
sound research is inherently founded on deep
IMPORTANT TERMS USED IN THE REPORT
TERM MEANING
Metropolitan region Thc urban rcgRn as dcncd by lhc rcgRna dcvcRpmcnl aulhRrly
Zone A Zone is a geographical division of the metropolitan region comprising of several
localities that possess similar characteristics in terms of access to employment hubs,
connectivity and demography. In most cases, the metropolitan region is divided into 4-5
zRncs lhal arc abccd as Ccnlra, SRulh, 1Rrlh, wcsl and Lasl
Destination Destination is the most promising residential locality from the perspective of investment
Benchmark location ldcnlcd bascd Rn lhc ncarcsl prcc cRnlRur, a bcnchmarN RcalRn s an cslabshcd
residential locality that has saturated in terms of real estate growth and infrastructure
development and is considered as the most sought after residential market within the
zRnc. wlh rcspccl lR prcc IRrccaslng IRr lhc dcslnalRn, a bcnchmarN RcalRn, prcIcraby
in the same zone, becomes the reference point
Property price This map splits the geography of a city in accordance with the prevailing residential
contour map prRpcrly prcc. kcsdcnla marNcls Iang wlhn a cRnlRur nc cRmmand prcc dcnlcd
by such line
Investor Return It is the IRR (Internal Rate of Return) for a typical investor in residential property
Assumptions for Size of property: 1000 sq. ft. Investment horizon: 5 years
calculating Investor Loan to Value ratio: 60% Mortgage rate: 10.5% pa
Return Loan tenure: 20 years
Residential Property The price indicates the average capital value in the residential market of the destination
Price (` per sq.ft.) and benchmark locations
Hidden Gem Locations where we expect the real estate drivers to gather momentum beyond year 2017
We have developed a
framework built on top-
down approach in the
selection of 1II VI PRV1
promising cities and zones
within them and bottom-
up approach in the
selection of top
investment destinations
From the perspective of
risk, property investment
fares better because asset
price generally remains
stable
understanding of the property market along with
the study of factors that drive it.
Real estate is an asset class where an educated
investor can mitigate the risk and enjoy the
associated superior returns at the same time.
Coupled with the other mainstream asset classes,
this investment vehicle can make for an optimally
dvcrscd pRrlIRR. ln mRsl cascs, nvcslmcnl n
real estate is fraught with decisions based on gut
feeling and tips which result in poor
investments. Hence, an investor has to clearly
delineate a real estate investment from
speculation.
Thc gRba nanca crss RI 2008-09 has brRughl
about a striking change in the attitude of
investors. This change towards expectation on
investment returns, growth and risk does not
single out any one asset class but applies to most
of the assets whether it is equity, debt,
commodity or real estate. Amidst this changed
scenario it is evident that an advice on
investment in any asset class cannot be generic.
Real estate as an asset class is the foremost
example that will witness the challenge thrown by
this tenet particularly in this tough economic
scenario. Even within real estate as an asset
class, the judgment on investment outlook on
commercial real estate and residential real estate
cannRl bc a uncd Rnc. Thc dRmnanl IaclRrs
that drive investment returns for both these are
diverse to a great extent. Hence, the investment
opinion should take into account each of these
factors.
INVESTMENT
advisory REPORT
lnda's kcsdcnla 0cslnalRns
Although the prominence of real estate as an
asset class is increasing, the investment research
in the subject lags much behind in comparison to
other asset classes. With this report, we will make
an incipient foray into the subject by identifying
the top residential destinations in the country
IrRm lhc nvcslmcnl pRnl RI vcw IRr lhc ncxl vc
ycars (2013-2017). Thc dcslnalRns arc
residential markets that we expect will
outperform in terms of the investor returns on
account of the appreciation in property prices. We
havc dcvcRpcd a IramcwRrN bul Rn 'lRp-dRwn
apprRach' n lhc sccclRn RI lhc vc mRsl
promising cities and zones within them and
'bRllRm-up apprRach' n lhc sccclRn RI lRp
investment destinations. Since real estate
activities are not restricted to city limits, we have
considered the entire metropolitan region in our
analysis. Our understanding of the local property
market and experience in dealing with
paramclcrs lhal dclcrmnc an urban ccnlrc's
growth equips us to develop the framework for
this pioneering report.
While selection of the top residential investment
destinations remains the core of this report, we
asR prcscnl vc RcalRns, whcrc wc cxpccl lhc
real estate drivers to gather momentum albeit
durng lhc cRngalcd lmc hRrzRn bcyRnd 2017.
Thcsc RcalRns havc bccn dcnlcd as 'hddcn
gcms' n lhc rcpRrl.
In most cases, investment
in real estate is fraught
with decisions based on
gut feeling and tips which
result in pOor
investments. Hence, an
investor has to clearly
delineate a real estate
investment from
speculation
l^VI'1Î^1
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APPROACH FOR IDENTIFICATION OF THE TOP RESIDENTIAL
INVESTMENT DESTINATIONS
India
Urbanccnlrcs
Top 100 cities
Business activity:
ankngpcnclralcn,hclcrccmdcmand,arpasscngcrlraffc
Infrastructure development:
Currcnlandprcpcscdnfraslruclurccxpcndlurc
Tcp100clcsbascdcnpcpualcn
Employment:
Occupcdcffccspacc,nduslraaclvly
Social & physical infrastructure:
Anaysscfdcvccpmcnlpancfrcspcclvc
aulhcrlcsandcxlcnsvcfcdsurvcy
Connectivity with
important locations
Access to social
infrastructure
Special factors:
Prcxmlylc
prcmumcffcc
spacc,and
avaably,
fcslycshfl,
panncd
dcvccpmcnl
Top 5 cities
Zone
Destination
The top residential destinations have been picked
from the universe of all urban centres in the
country. In this multi stage selection, each
parameter was chosen in a manner that captures
lhc causc and cccl rcalRnshp RI such
parameters with the growth of residential
development in the city.
The population base of a city is a crucial indicator
RI lhc pRlcnla RI ls hRusng marNcl. ln lhc rsl
slagc RI sccclRn, lRp 100 clcs wcrc dcnlcd
based on their population. The extent of business
activity and thrust on infrastructure development
arc crlca IaclRrs acclng lhc hRusng marNcl
and accordingly these selected 100 cities were
studied. Banking penetration, hotel room
dcmand and ar passcngcr lrac wcrc
considered as surrogates for business activities
and current and proposed infrastructure
INVESTMENT
advisory REPORT
From the growth and
investment perspective,
zones that have high
concentration of business
activity at present and
projections of meaningful
increment in future will
have a comparative
advantage over others
that have saturated on
this
METHODOLOGY &
APPROACH
Selection of top cities in the country
expenditures were taken as proxies for
infrastructure development. The cities were
ranked on these individual parameters and based
on the average ranking Mumbai, Delhi,
Bengaluru, Chennai and Pune emerged as the top
vc clcs.
With the fundamental prerequisite already in
pacc, lhcsc vc clcs arc wc prcparcd lR
participate in the growth trajectory for the
foreseeable future. While a framework was
prcparcd and lRp clcs wcrc dcnlcd, Rur
cndcavRur was cvcn mRrc spccc. wc havc
striven to provide a crystal clear view on
investment destinations for a typical investor in a
residential property. This objective meant
dcnlcalRn RI rcsdcnla dcslnalRns lhal
would outperform others on the investment return
scale.
Selection of zone within a city
Regional growth within a city is anything but even
and the direction of such growth is a critical
factor in determining the fate of a particular
residential property. We therefore, split each city
into 4-5 zones to capture the quantum and
drcclRn RI such grRwlh. Ths spl nlR dcrcnl
zones is based on the homogeneity of
characteristics with respect to access to
employment centres, social and physical
infrastructure and demography.
The selection of a preferred zone depends on the
pcrspcclvc RI such sccclRn, whch dcrs
depending on the purpose of purchasing property
which is either end-use or investment. From the
growth and investment perspective, zones that
have high concentration of business activity at
present and projections of meaningful increment
in future will have a comparative advantage over
others that have saturated on this. Growth of
business activity will create abundant
employment opportunities which in turn will lead
to a rise in inward migration and high demand for
residential property in these zones. Hence, we
dcnlcd lhc drvcr nduslrcs n cach zRnc and
assessed the impact of their business activity on
the kind of employment generated by such
industry. We have captured the extent of
employment generation by measuring the
quanlum RI Rccupcd Rcc spacc al prcscnl and
IRr lhc ncxl vc ycars.
A regression model capturing the impact of
change in revenue of driver industry on change in
Rccupcd Rcc spacc was dcvcRpcd. kcvcnuc
prRjcclRns IRr rsl lwR ycars wcrc bascd Rn lhc
revenue guidance by the respective industry
associations. Projections for the remaining three
years were based on the moving average trend of
lhc prcccdng vc ycars. AsR, lhc upcRmng
suppy RI Rcc spacc n ncxl vc ycars n a lhc
zones was analysed to understand the balance
between the incremental employment and
upcRmng Rcc spacc. Thus a crysla ccar vcw
on employment potential in a particular zone has
been provided. The service sector has emerged as
a driving force in most of the cases with the
Information Technology and Information
Technology enabled Services (IT/ITeS) industry
emerging as a dominant employment driver.
Besides the quantum of employment generation
in the driver industry, the nature of jobs in
INVESTMENT
advisory REPORT
accordance with its position in the value chain in
lhc nduslry was laNcn as a dcrcnlalng
element. For instance, employment in software
development within the IT/ITeS industry has a
dcrcnl mpacl Rn lhc ncRmc prRc RI
employees in comparison to that in the Business
PrRccss 2ulsRurcng (P2) rRc. Ths dcrcncc n
ncRmc prRc w mpacl aRrdably n a
diverse manner.
Besides employment, the other important factor
IrRm lhc grRwlh and nvcslmcnl pcrspcclvc s
nIraslruclurc dcvcRpmcnl. kcgRna
dcvcRpmcnl pans and cd vsls lR lhc zRncs
equipped us to assess the scope of infrastructure
development that will have an impact on
rcsdcnla marNcls wlhn a zRnc. wc asscsscd
lhc mpacl RI cxslng and upcRmng physca
infrastructure like road, rail and airport projects
Rn lhc rcsdcnla marNcls RI cach zRnc. Prcscncc
RI sRca nIraslruclurc cRmprsng cducalRn,
healthcare and recreation was also reviewed.
wc sccclcd 1-2 zRncs havng lhc mRsl prRmsng
Iulurc Rn accRunl RI lhc grRwlh n lhc quanlum RI
Rccupcd Rcc spacc and ncrcmcnla
nIraslruclurc dcvcRpmcnl. 2vcr lhc IRrcsccabc
Iulurc, lhcsc prcIcrrcd zRncs w bc lhc bggcsl
bcnccarcs bccausc lhcy Ia n lhc drcclRn RI
movement of employment and infrastructure.
&RPPHUFLDO2FH6SDFH
IT Sector
Industrial Physical
Connectivity
asc ullcs: walcr 8 PRwcr
LducalRn 8 hcalhcarc
Entertainment
6RFLDO
The service sector has
emerged as a driving force
in most of the cases with
the Information
Technology and
Information Technology
enabled Services (IT/ITeS)
industry emerging as a
dominant employment
driver
Non IT Sector
Selection of Destination
wlhn zRnc
All the residential markets within the preferred
zRnc w bcncl Rn accRunl RI lhc grRwlh n
employment opportunities and infrastructure
dcvcRpmcnl. hRwcvcr, a Icw RI lhcsc w havc a
cRmparalvc advanlagc Rvcr Rlhcrs. A bRllRm-up
apprRach was adRplcd lR anaysc lhc cxslng
and proposed connectivity and social and
physical infrastructure facilities. The approach
was mRdccd bascd Rn Rur cd vsls lR cach RI
lhc rcsdcnla marNcls n lhc prcIcrrcd zRnc and
discussions with various stakeholders. This
primary survey coupled with our real estate
cxpcrlsc hcpcd us lR arrvc al lhc bcsl
destinations from the perspective of investment.
Thc dcslnalRns havc bccn anayscd vs--vs a
bcnchmarN RcalRn whch s an cslabshcd
residential locality that has attained a relatively
hghcr saluralRn cvc n lcrms RI rca cslalc
grRwlh and nIraslruclurc dcvcRpmcnl and s
cRnsdcrcd lR bc Rnc RI lhc mRsl sRughl aIlcr
rcsdcnla marNcls wlhn lhc zRnc. Thc
bcnchmarN RcalRn IRr cach dcslnalRn has
bccn dcnlcd bascd Rn lhc ncarcsl prcc
cRnlRur. wlh rcspccl lR prcc IRrccaslng IRr a
dcslnalRn, a bcnchmarN RcalRn, prcIcraby n
lhc samc zRnc, bccRmcs lhc rcIcrcncc pRnl.
As mentioned earlier, our analytical focus was
prmary lR undcrsland lhc slalc RI lhc subjccl
markets connectivity with important locations
and social and physical infrastructure facilities
avaabc currcnly and asR n lhc IRrcsccabc
Iulurc. hRwcvcr, n ccrlan dcslnalRns lhcrc
wcrc varalRns wlh rcspccl lR IaclRrs mpaclng
future price movements like:
. 3UR[LPLW\WRSUHPLXPRFHPDUNHWV wadaa,
Rnc RI lhc sccclcd dcslnalRns n 0umba,
w bcncl duc lR ls cRnncclvly wlh lhc
prcmum busncss dslrcl RI lhc andra Kura
CRmpcx (KC).
. /LPLWHGODQGDYDLODELOLW\ Limited land
avaably w ml lhc scRpc RI ncw
Besides the quantum of
employment generation in
the driver industry, the
nature of jobs in
accordance with its
position in the value chain
in the industry was taken
as a ILIKI^1LDting
element
5($/(67$7('5,9(56
Business activity Infrastructure
0anuIaclurng
INVESTMENT
advisory REPORT
construction and put an upward pressure on
property prices in destinations like Chembur
in Mumbai.
. Lifestyle shift: Destinations like KR Puram in
Bengaluru possess the potential to provide a
lifestyle shift, which is possible generally in
projects developed on large land parcels that
facilitate high rise premium developments
with plush amenities.
. Planned development: Lack of social
infrastructure remains a concern in some
destinations as of now. However, on account
of being in the planned development region,
education, healthcare and recreation facilities
will eventually come up in destinations like
Ulwe in Mumbai.
While dynamics of a residential market with
respect to the demand-supply scenario were
considered to understand its depth, the impact of
factors like quality of projects, premium or
aRrdabc calcgRry, Rn prRpcrly prcc was asR
assessed. It is of paramount importance to
assess all these factors in comparison to the
benchmark locality and also other localities
within the zone. Further, these factors have to be
viewed in the context of the prevailing property
prcc. 0cslnalRns chRscn arc dcnlcy lhc Rncs
that would outperform other locations on the
investment return scale. However, continuing
with our intention of undertaking a thread bare
analysis and providing an unequivocal
nvcslmcnl vcw, wc havc quanlcd lhc capla
appreciation and the resultant investor returns for
investment in these destinations.
As mentioned earlier, to forecast the price
movement of a destination, we have considered
the price of a benchmark location as the
reference point. The assumption is that the
destination price will grow at a faster pace (as
compared to the benchmark location price)
because of its relatively higher level of increasing
developmental activities. As a result of this, the
current price discount of the destination will
reduce, making price convergence imminent in
the future.
ln lhc rsl slagc, wc havc IRrccaslcd lhc prcc RI
a benchmark location. Empirical evidence
indicates that price variation of established
rcsdcnla marNcls s sgncanly cxpancd by
the changes in economic activities. In line with
this, we have conducted iterations to identify the
cxpanalRry varabcs lhal slrRngy nucnccd
property price movement in the benchmark
locations. Indias economic growth has been
dcnlcd as lhc mRsl sgncanl IaclRr
explaining the price movements. Regression
equations have been estimated for each of the
dcnlcd bcnchmarN RcalRns and prcc has
been forecasted till 2017.
In the second stage, the price discount of a
dcslnalRn has bccn IRrccaslcd IRr lhc ncxl vc
years. In order to achieve this, we studied the
mpacl RI dcrcnl IaclRrs Rn prccs RI lhc
benchmark location over the last decade. These
factors include:
. Incremental employment generation in the
zone.
. New infrastructure projects.
. Reduction in time to commute between the
benchmark location and important places in
the zone.
Our analysis shows that the occurrence of one of
the above mentioned factors or a combination of
them accelerated the growth of residential
property prices in a benchmark location before it
stabilized and emerged as a relatively developed
market. Assuming that the destination will have a
Over the foreseeable
future, the preferred
zones will be the biggest
EIÎLLDKLIV EILDIVI they
fall in the direL1LR^ of
movement of employment
and infrastrIL1IKI
Lontinuing with our
intention of undertaking a
thread bare analysis and
providing an unequivRLDO
investment view, we have
quD^1LII the LDSL1al
appreLLDtion and the
resultant investor
returns for investment in
these destinations
TOP INVESTMENT
DESTINATIONS RANKED IN
ORDER OF INVESTOR RETURN
DURING THE NEXT 5 YEARS
#1 Ulwe
29.0%
#2 Wadala
#3 Chembur
#4 Noida
Extension
27.0% 25.5% 22.9%
#8 Ravet
#7 Hinjewadi
#6Medavakkam
#5 Dwarka
Expressway
22.3%
21.2% 20.6% 20.1%
20.0%
#9 Tathawade
#10 Hebbal
#11 Pallikarnai
19.3% 19.1% 18.7%
#12 Wakad
18.6%
#13 KR Puram
Investor returns per annum
INVESTMENT
advisory REPORT
Empirical evidence
indicates that price
variation of established
residential markets is
VLL^LLD^1Oy explained by
the changes in economic
activities
similar impact of incremental employment
generation and new infrastructure projects, the
property price in the destination has been
forecasted by applying an estimated discount
factor on the future price movements of the
benchmark location.
2ur rcscarch ndcalcs lhal aRrdably w Nccp
a resistance on price movement in many
destinations. Hence, we have created an income
pyramid of the employees in the driver industry.
This pyramid is a distribution of all the employees
according to their income. Thus, a ceiling was
applied to our destination price forecast as per
the change in this pyramid for the forecast
horizon.
REGION-WISE TOP INVESTMENT DESTINATIONS FOR NEXT 5 YEARS
Forecasted Price Appreciation in Percentage
Additionally, in cases where land availability is
not a concern, price growth will not breach the
aRrdably lhrcshRd RI lhc largcl cRnsumcr
group. As a result of this factor some destinations
did not qualify for the projected price growth and
were dropped from the top destinations list.
For a typical investor in residential property what
mallcrs s lhc ccclvc rclurn rcsulng IrRm lhc
leverage provided through the housing loan. The
same has been calculated and labelled as
Investor Return arising out of investment in
under construction residential property, in these
lRp dcslnalRns Rvcr a pcrRd RI lhc ncxl vc
ycars. PrRpcrly spcccalRn and nvcslmcnl szc
available at a destination along with select
residential projects have also been provided in
the report.
NORTH
Mumbai Pune
N
C
R
C
h
e
n
n
a
i
B
a
n
g
a
l
o
r
e
SOUTH
W
E
S
T
#1 Noida Extension
#2 Dwarka Expressway
111%
108%
#2Hebbal
#1 Medavakkam
#3 Pallikarnai
#4 KR Puram
94%
103%
93%
91%
#
4
H
i
n
j
e
w
a
d
i
#
5
T
a
t
h
a
w
a
d
e
#
6
R
a
v
e
t
#
7
W
a
k
a
d
1
0
0
%
9
8
%
9
7
%
9
1
%
#
1
U
l
w
e
#
3
C
h
e
m
b
u
r
#
2
W
a
d
a
l
a
1
4
5
%
1
3
3
%
1
2
5
%
E
A
S
T
INVESTMENT
advisory REPORT
in cases where land
availability is not a
concern, price growth
will not breach the
Dordability threshold
of the target consumer
group
. With property options ranging from
`3,200/sq.ft. to `15,000/sq.ft. and investor
returns in the range of 18.6% - 29% pa
residential real estate will emerge as a
prRmsng asscl cass IRr lhc ncxl vc ycars.
. With seven destinations, the western region
has the highest number of promising
residential investment options.
. The top three investment destinations, with
investor returns in excess of 25% pa, are from
Mumbai.
. Only Mumbai ranks ahead of the top
investment destinations of the NCR, the
biggest residential market in the country.
. Enhanced connectivity and the proposition of
lhc dpRmalc cncavc w sgncanly bcncl
the Dwarka Expressway, placing it in high
KEY takeaways
Risk factors for our outlook
2ur IRrccasl IRr Rccupcd Rcc spacc rccs
largely on the service sector led by the IT/ITeS
industry. The sectors revenue growth during the
ncxl vc ycars w havc an mpacl Rn lhc
employment, which is one of the biggest drivers
of real estate. For the IT/ITeS industry, the
revenue growth estimates for the initial two years
have been taken from the industry association
and for the remaining three years they have been
laNcn as lhc prcccdng vc ycar mRvng avcragc
growth rate between 10-12%.
While the Indian IT/ITeS industry is
interconnected with the global economy, reputed
research studies have highlighted the
interlinkage between the domestic manufacturing
sector and this industry. As a result, the weak
global economy and a slowdown in the domestic
manufacturing sector will have a direct impact on
this industry. Our analysis puts a great emphasis
on the fate of the IT/ITeS industry because of its
cmcrgcncc as a sgncanl cmpRymcnl prRvdcr
n lhrcc RI lhc lRp vc clcs.
The BFSI industry has a meaningful role in the
employment trend in cities like Mumbai and
Delhi. We have considered a revenue growth rate
RI 17-21% bascd Rn lhc prcccdng vc ycar
moving average growth rate for this industry.
The employment generated by these industries
has a sgncanl mpacl Rn Rur IRrccasl IRr
Rccupcd Rcc spacc. hcncc, any majRr
deviation in their revenue growth will have an
advcrsc mpacl Rn Rur IRrccasl IRr Rccupcd Rcc
space and therefore the fate of the respective
destination.
Additionally, in several cases, the fate of the
destinations is linked to the delivery of
nIraslruclurc prRjccls, whch maNcs Rur anayss
vuncrabc lR any sgncanl dcvalRn IrRm lhc
prRgrcss lmcnc RI such prRjccls.
ranks on the investment return scale.
. The IT/ITeS industry is the driving force behind
the growth in most of the destinations.
. With four investment destinations, Pune has
the maximum number of promising residential
property options.
. IT/ITeS, Automobile and Engineering sectors
are the primary employment drivers in Pune
. The destinations in Chennai will immensely
bcncl IrRm lhc grRwlh RI lhc lT]lTcS and
Automobile industries in Tamil Nadu during the
ncxl vc ycars.
. IT/ITeS and Bio-technology sectors will be the
driving forces behind the growth of
destinations in Bengaluru.
INVESTMENT
advisory REPORT
BENGALURU METROPOLITAN
REGION POPULATION
Population in Millions
Source: Census 2011, Knight Frank Research
Population Average Annual Growth
1991 2001 2011
Bengaluru (also known as Bangalore), the capital of Karnataka is located
in the south-eastern part of the state. The city is located at an
altitude of 950m. above the sea level, thereby making its climate very
serene. Bengaluru is the third most populous city of India with a very diverse
demography. It is also known as the Garden City of India. It houses the
largest number of Information Technology (IT) and Information Technology
Enabled Services (ITeS) companies in India for which it earned the
sobriquet of the Silicon Valley. It also houses numerous public sector
companies including defence, aerospace and bio-technology.
Bengaluru urban agglomeration is known as Bengaluru Metropolitan
Region (BMR) comprising Bengaluru urban district, Bengaluru rural district
and Ramanagara district. The Bruhat Bengaluru Mahanagara Palike
(BBMP) is in charge of the civic administration of the city. The corporation
is spread over an area of 741 sq. km. Bangalore Metropolitan Region
Development Authority (BMRDA), an autonomous body created by the
Government of Karnataka is the nodal agency looking after the overall
development of the BMR. During the last two decades the population
growth was phenomenal in the BMR. It rose at an annual rate of 3.9%
durng 2001-2011, prmary duc lR a hugc nux RI lT]lTcS cmpoyees.
BENGALURU
4.84 6.54 9.59 5.2% 3.1% 3.9%
CHIKKA
BOMMASANDRA
VARTUR VARTUR
CHIKKA
MMASANDRA NDRAA BOM A BOM AA
15000
6000
3500
Major Roads
Railway Line
Existing Metro
Under Construction
South Zone
West Zone
Central Zone
East Zone
North Zone
Price Contours (`/ sq.ft)
Proposed Metro
Nagawara
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BENGALURU MAP
INVESTMENT
advisory REPORT
Bengaluru Metropolitan
Region (BMR) is spread over
741 sq. km.
Market Overview
ZONE MAJOR RESIDENTIAL
DESTINATIONS
Central MG Road, Vitthal Mallya Road,
Frazer Town, Lavelle Road,
Richmond Road, Langford Town
West Malleswaram, Rajajinagar, Tumkur
Road, Vijayanagar, Yeshwanthpur
North Banaswadi, Hebbal, Bellary Road,
Hennur, Yelahanka, Jakkur, HBR
Layout
East whlccd, 2d ArpRrl kRad, 2d
Madras Road, KR Puram
South Koramangala, Sarjapur Road, HSR
layout, Jayanagar, JP Nagar,
Bannerghatta Road, Kanakapura
Road
Thc 0k marNcl can bc dvdcd nlR vc brRad
zones: Central, West, North, East and South.
South Bengaluru, a locale which until the mid-
1990s housed a strong Kannada (native language of
Karnataka) speaking population now boasts of
being a cosmopolitan region. This was mainly on
accRunl RI a hugc nux RI pRpualRn IrRm a Rvcr
India. Electronic City located on Hosur Road in the
sRulh cmcrgcd as lhc rsl lT hub RI cngauru n
1990. Many IT giants like Infosys, HCL
Technologies, HP, Wipro, Genpact and Siemens
have setup their campuses in this region. With the
setting up of these companies, the South
Bengaluru region became a preferred commercial
as well as residential destination. The availability of
land, strong infrastructure and presence of the
middle-income segment have contributed to the
development of this zone. The residential clusters
n prRxmly lR lhc LcclrRnc Cly Nc Sarjapur,
Koramangala, Jayanagar, BTM Layout,
Bannerghatta Road and Hosur Road have attracted
a large number of immigrants especially the IT
employees. Social infrastructure like the availability
of quality hospitals, prestigious educational
institutions and retail malls are some of the major
reasons behind residential demand in this part of
Bengaluru.
This region started losing its charm since 1998
when the Government of Karnataka announced the
new international airport at Devanahalli - a town
located in the north of Bengaluru. Major IT/ITeS
companies started acquiring land closer to the
arpRrl n lhc nRrlh IRr lhcr cxpansRn. Thcy
refrained from buying any new land in this region,
hampering the overall growth of the South
Bengaluru region. In this bargain North Bengaluru
emerged a better investment destination compared
to the south.
The new international airport at Devanahalli
commenced in 2008. By virtue of this, North
Bengaluru became one of the most sought after
destinations of Bengaluru. Numerous real estate
and infrastructure projects were announced to
enhance the connectivity between Bengaluru city
centre and the airport; this included High Speed
Rail Link (HSRL), monorail and Metro rail. Moreover,
to generate employment in this region, the
government in association with private companies
carmarNcd argc nvcslmcnls, such as KlA0 ParN,
ArpRrl TRwnshp - AcrRlrRpRs, lnIRrmalRn
Technology Investment Region (ITIR), Devanahalli
Business Park (DBP) and Global Finance District
(GFD). These also attracted a lot of institutional
buyers like real estate developers and
hoteliers.This region is on the cusp of becoming the
new commercial business district (CBD) of
cngauru. hcncc l s wRrlhwhc lR cxpRrc lhs
region with respect to the real estate investment.
Major micro-markets covered under this zone are
Hebbal, Devanahalli, Yelahanka and Hennur.
Before 1990, the eastern zone was home only to
some of the reputed heavy manufacturing
nduslrcs Nc hnduslan AcrRnaulcs Lmlcd
(hAL), L0L and lTl lhal wcrc nslrumcnla n lhc
growth of this region. With the dawn of the IT sector
some of these industries have gradually turned into
lcch-parNs. PrRxmly lR lhc 2ulcr kng kRad (2kk)
cRupcd wlh lhc avaably RI gradcd Rcc spacc
attracted major IT/ITeS companies in the eastern
zRnc. Ths Iuccd lhc cxpansRn RI cRmmcrca and
residential development in this region.
CRnscqucnly, whlccd, Cv kaman 1agar, rRRNc
Fcd, 2d 0adras kRad, lndranagar, Kk Puram, 2d
ArpRrl kRad, 0ahadcvapura, hRRd Crcc and Sa
aba Ashram cmcrgcd as lhc prcIcrrcd rcsdcnla
destinations among the IT employees. Moreover,
INVESTMENT
advisory REPORT
2007 2008 2012* 2009 2010 2011
* Till September 2012
RESIDENTIAL PROJECT LAUNCH
TREND IN BENGALURU
Launches Source: Knight Frank Research
31,236
20,608
14,439
31,733
54,075
24,741
9.59 mn.
population in the BMR, an
increase of 98% in the
last two decades
2007 2008 2009 2010
5%
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
N
o
.

o
f

U
n
i
t
s
Stock Cumulative Absorption % of Unsold Units
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF BENGALURU
2011
Source: Knight Frank Research
2012*
2d 0adras kRad, whlccd kRad, lTPL and varlhur
Road emerged as a business district having many
tech-parks, SEZs, captive campuses and business
centres.
Central Bengaluru is the commercial and retail
hcarl RI lhc cly wlh varRus cRrpRralc Rccs
Rcalcd n mcrR-marNcls Nc lhc 06 kRad, vllha
Mallya Road, Commissariat Street, Ulsoor and
Lavcc kRad. Lxcccnl cRnncclvly wlh varRus
parts of the city, good physical and social
infrastructure along with the presence of organized
retail has ensured the highest property prices in
lhs parl RI lhc cly. Thc prRmncnl rcsdcnla
micro-markets of this region include MG Road,
LangIRrd kRad, kchmRnd TRwn, Labagh kRad,
vllha 0aya kRad, kcsdcncy kRad and Frascr
TRwn. 0ajRrly RI lhc rcsdcnla dcvcRpmcnls n
the central locations are bungalows and
independent residential units, however some
pRcNcls Nc kchmRnd TRwn, kchmRnd kRad,
0acshwaram Ppcnc kRad and 06 kRad arc
witnessing growth in multi-storey high-rise
constructions as well.
Prmary an nduslra hub, wcsl cngauru hRuscs
Rnc RI lhc argcsl nduslra arcas RI Asa - 'Pccnya
lnduslra Arca'. Thcrc arc hugc sclups RI scvcra
renowned engineering, transformers, motors and
generator companies here. Being an industrial hub,
lhs rcgRn was nRl caughl n lhc lT]lTcS wavc RI
the mid-1990s, that transformed South and East
Bengaluru as one of the most sought after
residential markets. However, this region gained a
lot of traction with the announcement of the
upcRmng nIraslruclurc prRjccls vz. ccvalcd
cxprcssway, mclrR and lhc rRad cRnncclvly aRng
lhc TumNur kRad. 0crR-marNcls such as
0acswaram, cshwanlpur, kajajnagar, L0L
layout, Mysore Road, Nagarbhavi,
asavcshwarnagar, TumNur kRad and }aha wcsl
received the necessary impetus for growth.
6rRwlh RI lhc lT]lTcS scclRr aRng wlh lhc scllng
up of bio-technology units and other large national
and multinational manufacturing units have
East North South
ZONE-WISE SPLIT OF UNDER
CONSTRUCTION UNITS
42%
27%
30%
176,832 residential
units launched since 2007
in the BMR
INVESTMENT
advisory REPORT
changed the dynamics of Bengaluru real estate
market. Apart from generating thousands of new
jRbs IRr lhc Rca rcsdcnls, cngauru has bccn
able to attract a large pool of migrants into these
scclRrs IrRm acrRss lhc cRunlry. Ths has cnabcd
the real estate market to grow at a tremendous rate
n lhc asl vc ycars cspccay lhc rcsdcnla
segment that witnessed the launch of over 176,832
units since 2007.
Bengaluru residential market witnessed the launch
of 85,808 units in the last two years (i.e. 2010 and
2011) accounting for almost 49% of the total units
aunchcd sncc 2007. 0urng lhc samc pcrRd
54,687 units were absorbed in the Bengaluru
residential market. South and East Bengaluru
wlncsscd a majRr chunN RI aunchcs and
absorption during this period mainly on account of
lhcr prRxmly lR lhc lT hub RI LcclrRnc Cly and
whlccd kRad. 2vcr lhc pcrRd lhs rcgRn has
emerged as a self-sustaining micro-market
allraclng many lT cmpRyccs.
9%
11%
14%
25%
32%
Pennya industrial estate
spread over 266acres -
one of the largest
industrial areas in Asia
85,808 units
launched and 54,687 units
absorbed during 2010 and
2011 in BMR
57%of under-
construction units are in
North and East Bengaluru
Real Estate Drivers
Infrastructure Development
Employment Indicators
Service Sector
IT Sector
Manufacturing Sector
Biotech Sector
Rail Network
Bangalore Metro Corridor I & II
Monorail Corridor
Pheripheral Ring Road
Elevated Road / Expressway
Road Network
62 km. Outer Ring Road
connects all the major IT
hubs from North to South
EXISTING ARTERIAL ROAD NETWORK
DISTANCE OBSERVATIONS
Outer Ring Road (ORR) 62 km. ORR provides connectivity with all the major highways around the
city. Passing across the major suburbs viz. Hebbal - KR Puram -
Marathahalli - Sarjapur Rd. - Silk Board Junction
Nandi Infrastructure Corridor 42 km. Long peripheral road, connecting Jalahalli in the north with the
Enterprises (NICE) Electronic City on Hosur Road in the South. The corridor connects
Ring Road Mumbai and Chennai through NH-4 in the western region and NH-
7 in the southern region respectively. Initially a four-lane structure
with provision for expansion upto six-lane. NICE Ring Road has
cnabcd lrac IrRm 0umba lR mRvc drccly lR Chcnna wlhRul
crossing downtown Bengaluru
Hosur Road (NH7) 40 km. A four to eight-lane national highway (Part of NH7) connecting
Bengaluru city with Hosur, a town in Tamil Nadu. The Hosur Road
passes via the Electronic City one of the largest IT industrial parks
of Bengaluru
Bengaluru Elevated Toll-way 10 km. A 10 km. long elevated and tolled expressway connecting
Bomanahalli to Electronic City
INVESTMENT
advisory REPORT
High Speed Rail Link
EXISTING SUBURBAN RAIL NETWORK
DISTANCE OBSERVATIONS
Metro Train Network 6.7 km. Reach I, a 6.7 km. part of the East-West corridor, connecting
Phase I, Reach I Byappanahalli with MG Road is operational since October 2011
Metro rail operational
between Byappanahalli
and MG Road since Oct 2011
ROAD NETWORK
METRO TRAIN NETWORK
A 33 km. High Speed Rail
Link proposed - will
operate between Cubbon
Road and Bengaluru
International Airport
UPCOMING ARTERIAL ROAD NETWORK
CONNECTIVITY & LENGTH OBSERVATIONS CURRENT EXPECTED
STATUS COMPLETION
Road widening from Hebbal A six-lane elevated road over the Under 2013-14
to Bengaluru International Airport existing road connecting with the Construction
20 km. international airport is under
construction. The elevated stretch that
starts from Kodigehalli gate will be a
six-lane highway extending over 4 km.
The project will have a series of seven
yRvcrs IrRm hcbba lR lhc Trumpcl
Junction near the airport
High Speed Rail Link (HSRL) A 33 Nm. hSkL has bccn prRpRscd, Five Post 2016
33 km. that will connect the city centre with consortiums
lhc arpRrl. Thc hSkL w Rpcralc shortlisted
bclwccn CubbRn kRad and cngauru
International Airport with two halts in
bclwccn, Rnc al hcbba and anRlhcr
at Yelahanka.
Monorail Project cngauru Ar ka LnN Lld. (AkL) has Proposed Post 2015
41 km. proposed 31 km. monorail from JP
1agar (sRulh) lR hcbba (nRrlh) and
10 Nm. bclwccn Pcrphcra kng kRad
(Pkk) and 0agad kRad. Ths prRjccl
will function as a feeder service to metro
rail as well as the international airport
Peripheral Ring Road (PRR) A 116 Nm. Pkk has bccn prRpRscd, l Pre-feasibility Post 2016
116 km. will connect the entire peripheral stage
arterial road linking all the major
hghways and lhc dslrcl rRads. 0ajRr
cRnncclng arca wRud bc hRsur kRad
lR TumNur kRad va Kk Puram, cary
kRad, 2d 0adras kRad and Sarjapur
kRad. Thc Pkk s cxpcclcd lR casc lhc
cRngcslRn Rn lhc 2kk
Bengaluru Metro Rail Phase I a) A 2/ Nm. 1Rrlh-SRulh (1S) mclrR Under 2014-15
42 km. cRrrdRr has bccn prRpRscd, l w construction
cRnnccl hcsaraghalla crcc (n nRrlh)
wlh Pullcnaha (n sRulh)
b) An 18 Nm. Lasl-wcsl (Lw) mclrR
cRrrdRr has bccn prRpRscd, l w
cRnnccl yappanaha wlh 0ysRrc
kRad (kcach l, a 6.7 Nm. parl RI lhc Lw
cRrrdRr, cRnncclng yappanaha
wlh 06 kRad s RpcralRna sncc
2clRbcr 2011.)
Bengaluru Metro Rail Phase 2 a) Phasc ll cnvsagcs cxlcnsRn RI lhc In-principle cyRnd 2016
72 Nm. 0clrR Phasc l, Rn lhc 1S cRrrdRr. TR approval
the north it will be extended upto received from
cngauru lnlcrnalRna LxhblRn lhc 6Rvl. RI
Ccnlrc (lLC) and lR lhc sRulh l w bc Karnataka.
cxlcndcd uplR 1lCL }unclRn Awaiting
approval from
b) Lw cRrrdRr s panncd lR bc the Urban
cxlcndcd uplR whlccd lR lhc casl Development
and Kengeri to the west. Department
0nslry
c) Furlhcr, lwR ncw ncs havc bccn
panncd n Phasc ll, Rnc cRnncclng
INVESTMENT
advisory REPORT
A 116 km. Peripheral Ring
Road proposed -
connecting Hosur Road to
Tumkur Road via KR Puram,
Bellary Road, Old Madras
Road and Sarjapur Road
Over 2,000 IT & ITeS
companies present in
Bengaluru including more
than 100 Fortune-500
companies
CONNECTIVITY & LENGTH OBSERVATIONS CURRENT EXPECTED
STATUS COMPLETION
Rashtreeya Vidyalaya (RV) Road with
Bommasandra in the South,
Electronics City on the Hosur road with
the city centre
d) Another line will be parallel to the
NS Corridor of Phase I, running
between Nagawara in the north and
Gottigere in the South. It will have two
interchange stations, one at MG Road
and another at Jayadeva hospital
Elevated corridor from Central Silk A 15 km. elevated corridor connecting Pre-Feasibility Beyond 2015
Board Junction to Jayamahal Road Central Silk Board Junction to stage
15 km. Jayamahal Road is envisaged to ease
lhc lrac Rw bclwccn 1Rrlh and
South Bengaluru. This will also
facilitate in reaching the new
international airport in the North.
Construction of elevated corridor A 28 km. West-East elevated corridor Pre-Feasibility Beyond 2014
between Jnanabharathi and along the Ring Road connecting stage
Old Airport Road Tumkur (Jnanabharathi) with Old
28 km. Airport Road. The corridor will pass
through Sirsi Circle, Town Hall, Hudson
Circle, Vellara junction and Old Airport
Road. The proposed corridor is
expected to ease the East-West city
lrac Rw
Bengaluru - Mysore Expressway A six-lane expressway connecting Land Beyond 2017
140 km. Bengaluru with Mysore is under acquisitions
construction. Only peripheral part of
56 km. has been completed till date.
INVESTMENT
advisory REPORT
Bengaluru is the IT and Bio-technology capital of
India. It also houses numerous Government
promoted heavy industries including defence
RrganzalRns, sccnlc cslabshmcnls,
aerospace and telecommunication companies. It
also has renowned Indian educational institutions
Rcrng a pclhRra RI jRb RppRrlunlcs.
However, Bengalurus economy is primarily
driven by the IT/ITeS sector and bio-technology
sector.
IT/ITeS SECTOR
Over 2,000 IT/ITeS companies, including more
than 100 Fortune-500 companies have
established their operations in Bengaluru. These
companies in all, generate software exports worth
`700bn. and directly employ over 650,000
professionals. Prominent Fortune-500 companies
operational in Bengaluru are IBM, Dell, HP,
CISCO, Sun Microsystems, Microsoft, Toyota, ING,
Tesco, Citigroup, JP Morgan Chase, Goldman
Sachs, Bosch and Tyco. Prominent Indian IT &
ITeS companies like TCS, Infosys, Wipro and
Mahindra Satyam have major operations in the
city.
Bengalurus IT/ITeS sector accounts for almost
one-third of Indias IT/ITeS revenue and almost
half of the Indian Bio-Technology companies are
located in Bengaluru. These sectors play a very
vital role in the growth of commercial and
residential real estate in Bengaluru.
IT/ITeS companies have been predominantly
concentrated in South, South East Bengaluru and
the Outer Ring Road (ORR) stretch from Hebbal to
Employment Indicators in Bengaluru
Bengaluru generates
software exports worth
`700 bn.
650,000 IT
professionals directly
employed in Bengaluru
IT/ITeS and Bio-technology
sector are the driving
factors for Bengaluru's
growth
Silk Board junction. This region houses many
renowned tech-parks, IT/ITeS SEZs and captive
campuses of Fortune-500 IT companies. Micro-
marNcls aRng whlccd, LcclrRnc Cly, 2kk,
Sarjapur and anncrghalla kRad havc dcvcRpcd
into self-sustaining hubs. East Bengaluru has
Rvcr 37 mn. sq.Il. RI Rcc spacc. Aparl IrRm lhc
large campuses of IT/ITeS companies such as
0c, TCS, L8T lnIRlcch, 6L, hP and 6alc, lhcrc
arc numcrRus slandaRnc cRmmcrca Rcc
budngs Nc rgadc 0clrRpRs, Prcslgc
ShanlnNclan, Lmbassy Crcsl, lTP, 6vk Tcch
ParN, S}k ParN and Saarpura Tcch ParN acrRss
lhc lT hub RI whlccd n Lasl cngauru.
LcclrRnc Cly lnduslra ParN Rcalcd n lhc
southern region is spread over 330 acres having
Rvcr /5 mn. sq Il. RI Rcc spacc ncudng lhc
caplvc Rccs. ll s dvdcd nlR lhrcc phascs, RI
which one is completely dedicated to the bio-
technology sector, while the other two pre-
dominantly house IT/ITeS sector companies.
0ajRr cRmpancs havng Rccs hcrc arc lnIRsys,
wprR, hCL, 6cnpacl, Scmcns, TCS and 0ahndra
Salyam. 1Rn-caplvc cRmmcrca Rcc spaccs
ncudc S}k LqunRx, harla lT ParN, 6Rba Tcch
ParN, Svk FRrlunac and hranandan upscac.
Thc 2kk slrclch bclwccn hcbba lR SN Rard
}unclRn acqurcd mpRrlancc wlh lhc
commencement of the Bengaluru International
ArpRrl n 2008 n 0cvanaha. Ths slrclch scrvcs
as a main junction between the airport and the
established IT hub of Bengaluru i.e. Electronic
Cly and whlccd. Ths slrclch has argc mul-
tenanted IT parks. Major IT parks include Manyata
Lmbassy usncss ParN, Saarpura Suprcmc,
Ccssna usncss ParN and Prcslgc Tcch ParN.
The countrys IT/ITeS sector grew at an annual
ralc RI 22.5% lR `1,/7/bn. durng 200/-2011 and
is estimated to reach 3,000bn. by 2017. As pcr
1ASSC20, lhc lT]lTcS scclRr has crcalcd
tremendous job opportunities, generating over 11
mn. direct and indirect jobs. It is
estimated that the sector would create
Rvcr 1/ mn. by 2015 and cRsc lR 30 mn. jRbs by
2030. cngauru IRrms Rnc-lhrd RI lhc cRunlry's
lRla lT]lTcS rcvcnucs. wc cxpccl cngauru lR
continue its growth trajectory in-line with the
cRunlry's lT]lTcS grRwlh. Furlhcr, lhc 6Rvcrnmcnl
of Karnataka proposes to increase employment
RppRrlunlcs n lhc sRIlwarc cxpRrl cd lR abRul
2 mn. by 2020 IrRm 0.65 mn. al prcscnl.
With the strengthening of the global economy,
robust domestic fundamentals and easy
availability of skilled human capital the IT/ITeS
nduslry hcrc s cxpcclcd lR grRw sgncanly n
the coming years.
`
IT/ITeS sector constitutes
70% of the total RLI
space in Bengaluru
OFFICE SPACE BREAK-UP
Source: Knghl FranN kcscarch
BENGALURU OFFICE
SPACE DYNAMICS
before
2008
2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E
INVESTMENT
advisory REPORT
70% 30%
160
140
120
100
80
60
40
20
ZONE WISE DISTRIBUTION OF
OFFICE SPACE STOCK
27%
12%
36%
15%
11%
Ccnlra West South East North
Currently the total RLI
space stock in Bengaluru
is 92 mn. sq.ft. of which
79.80 mn. sq.ft. is occupied
2 mn. direct and indirect
JoBS TO BE GENERATED BY
2020 IN BENGALURU
NORM DETAILS
Time line for property registration Any time until possession
Re-sale before possession Allowed
Transfer charges payable to builder `200-300 psf
Loading (as % of carpet) 33%
Remarks Investor friendly market. Gains from lower Stamp Duty are taken back by
hghcr vAT ralc. Lcclvcy, laxcs arc hghcr n cRmparsRn lR 0umba
and Pune
MARKET NORMS
BIO-TECHNOLOGY SECTOR
India is ranked among the top 12 biotechnology
destinations in the world and third largest in the
Asa-Pacc rcgRn. Thc 6Rvcrnmcnl RI KarnalaNa
is committed to establishing a Biotech corridor
for the development of the biotech industry in
KarnalaNa. Thc cRrrdRr n cngauru sha cxlcnd
from the Indian Institute of Science to the
unvcrsly RI Agrculura Sccnccs. KarnalaNa has
a argc numbcr RI bRlcch cRmpancs, such as
AslraZcncca lnda, RcRn lnda, Cada,
SmlhKnc cccham and wRcNhardl.
Thc lndan R-lcchnRRgy ScclRr s cxpcclcd lR
grow to USD 10 bn. by 2015 from USD 4 bn.
pRslcd n sca 2010-11. cngauru has cmcrgcd
as a Rlcch capla RI lnda, accRunlng Rvcr
40% or USD 1.6 bn. of the countrys total
rcvcnucs. 2I lhc 380 bRlcch rms acrRss lhc
cRunlry, 52% Rr 198 arc Rcalcd n KarnalaNa and
50% Rr 191, arc n cngauru Rwng lR rch human
capital and cost advantage over peers overseas.
Currcnly lhc lRla Rcc spacc slRcN n cngauru
s abRul 92 mn. sq. Il. RI whch 80 mn. sq. Il. s
USD 10 bn. the size of
Indian Bio-technology
sector by 2015. Current size
USD 4 bn.
INVESTMENT
advisory REPORT
Rccupcd, rcsulng n a vacancy cvc RI 13%.
Bengaluru retained the top slot for the highest
Rcc spacc absRrplRn n lhc cRunlry n F 2012,
despite global uncertainties looming large on the
hRrzRn. Thc cly's Rcc marNcl cRcNcd
absRrplRn RI amRsl 12 mn. sq. Il. durng F 2012,
translating into an increase of 10% over the
absRrplRn wlncsscd n F 2011. Thc lT]lTcS
industry still remains the key demand driver for
Rcc spacc n cngauru. 6Rng IRrward, wc
cxpccl anRlhcr 50 mn. sq. Il. RI ncw Rcc spacc
lR bc addcd lR lhc cxslng nvcnlRry n lhc ncxl
vc ycars, laNng lhc lRla slRcN lR 1/1 mn. sq. Il.
by the end of 2017.
Thc rcccnl sRwdRwn wlncsscd by lhc lT]lTcS
scclRr gRbay, s cxpcclcd lR mpacl lhc
ncrcmcnla absRrplRn RI Rcc spacc n
cngauru n lhc cnsung ycars. hRwcvcr, a dcay
in the delivery of new projects will lower the
vacancy cvcs lR 12% by lhc cnd RI 2017. wc
have forecasted an incremental demand of 44-45
mn. sq. Il. Rvcr lhc ncxl vc ycars laNng lhc lRla
Rccupcd spacc n lhc cly lR 12/ mn. sq. Il. by lhc
end of 2017.
COST DETAILS
Stamp duty 5% (On ready reckoner rate)
Registration 1% (uplR a maxmum RI `30,000)
VAT 7% (on agreement value)
Service Tax (on under- 3% (on agreement value)
construction property)
STATUTORY COSTS
AND MARKET NORMS
STATUTORY COSTS
380 biotech companies
in India - 50% alone in
Bengaluru
40%of the country's
bio-technology sector
contributed by Bengaluru
Proposed Monorail
Major Roads
Railway Line
Benchmark location
Top destination
Employment Hubs
Major Roads
Existing Metro
Proposed Metro
Airport
Railway Line
Benchmark location
Top destination
Employment Hubs
KR PURAM
WHITEFIELD
B Halli Terminal
MG Road
KR Puram
:KLWHHOG
B Narayanapura
Mahadevapura
CV Raman Nagar
%URRNHHOG
Hudi
KIADB Export
Promotion Area ,QWHUQDWLRQDO7HFKQRORJ\
3DUN%DQJDORUH,73%
EPIP Zone
INVESTMENT
advisory REPORT
EAST BENGALURU MAP
HEBBAL
<HODKDQND6DWHOOLWH7RZQ
NORTH BENGALURU MAP
Major Roads
Proposed Metro
Airport
Railway Line
Benchmark location
Top destination
Employment Hubs
bengaluru dominance in the
BPO/KPO sectors have won
it a place in the dictionary
as Bangalored meaning
Outsourced
Bengaluru was a laid-back city till the mid-1990s
when the IT boom reshaped it into a major city of
India. Many large domestic IT companies as well
as lhc FRrlunc-500 cRmpancs scl-up lhcr Rccs
here giving a boost to the Bengaluru real estate
market. Today, Bengaluru has become the
software hub of India, commonly known as the
Silicon Valley of India. Its dominance in the KPO
(Knowledge Process Outsourcing) and BPO
(Business Process Outsourcing) sectors have won
it a place in the dictionary as Bangalored
meaning Outsourced. We believe Bengalurus
dominance in the IT/ITeS sector will continue in
the foreseeable future.
As per the fundamental economics of the real
estate sector, the price appreciation depends on
two factors - employment and infrastructure
development (connectivity). This phenomenon
has been witnessed in the South and South-East
regions of Bengaluru. In the mid-1990s, since the
growth of the IT/ITeS sector many large IT parks
and campuses have been set-up in the Electronic
Cly (sRulh) and whlccd (sRulh-casl) rcgRn.
This attracted many software engineers to
Bengaluru consequently leading to demand for
residential real estate. Micro-markets such as
Bannerghatta Road, Kanakpura, Sarjapur Road, JP
1agar, }aya 1agar, whlccd, varlhur,
Mahadevapura, CV Raman Nagar, Uttarahalli, KR
Puram and Electronic City have emerged as
residential markets. However, South Bengaluru
destinations lost their charm post the
Airport (BIA) near Devanahalli in North Bengaluru.
As a natural phenomenon for the real estate
sector, all focus including government,
corporates and general public at large, has now
shifted northwards a new growth corridor for
real estate.
We expect North and East Bengaluru to be the
bggcsl bcnccarcs RI lhc lA and cxpccl lhcm
to emerge as the new Central Business Districts
(CBD) of Bengaluru within the next decade. This
can be further substantiated by the numerous
infrastructure projects undertaken by the
government such as High Speed Rail Link (HSRL),
Metro Lines, monorail and the Peripheral Ring
Road that are at various stages of construction.
On completion, these projects will enhance the
connectivity of the city centre with the BIA.
PREFERRED
ZONES IN
BENGALURU
Availability of huge land parcels along the road
between the city centre and the BIA has attracted
many large corporates.
Residential end-users at large prefer residing in
Northern Bengaluru as against the south; this
was not the case 4-5 years back. The change in
preference was mainly on account of shifting of
the airport to the north near Devanahalli. We
expect the stretch from Hebbal to Yelahanka in
the north to gain large price appreciation in the
ncxl vc ycars many Rn accRunl RI ls prRxmly
to the airport, connectivity with the city centre
and upcoming social infrastructure.
East Bengaluru in itself is a well-developed and
scI-suslanng zRnc. Al ls cRrc, whlccd as a
micro-market has evolved over the years. It has
become one of the most preferred destinations
for the IT/ITeS employees, as it is close to the IT
cRrrdRr RI whlccd and lTP. ll asR has a wc-
developed social infrastructure (school, hospitals
etc.) and a well-organized retail market.
Moreover, this region will have smooth
accessibility to the airport with the proposed 116
km. Peripheral Ring Road (PRR). The PRR will link
Hosur Road with Tumkur Road via KR Puram,
Bellary Road, Old Madras Road and Sarjapur
kRad. hcncc marNcls Nc Kk Puram, whlccd,
Budigere Cross and Old Madras Road will see
some good traction in the next 4-5 years.
Therefore, based on the above developments we
believe North and East Bengaluru regions will
wlncss gRRd lraclRn Rvcr lhc ncxl vc ycars.
INVESTMENT
advisory REPORT
NORTH
BENGALURU
The focus of the GOK over the last decade has
clearly been North Bengaluru. By shifting the
Bengaluru International Airport (BIA) near
Devanahalli in the north thereby replacing old
HAL Bengaluru International Airport, GOK has
substantiated its intention in developing North
Bengaluru. Since the new airport is 40 km.
outside the city, GOK has also planned Mass
Transit Systems (MTS) like monorail, Metro-Line
and High Speed Rail Link (HSRL) to enable
travellers to reach the airport faster. Also,
commuter rail system has been planned to
connect Devanahalli with Yeshvantpur via
Yelahanka. Additionally, widening of the NH-7
upto BIA from the existing six-lane to eight-lane is
undcr prRccss. Ths can suslan hghcr lrac duc
to airport expansion and expected real estate
developments on either side of the NH-7. Further,
South Bengaluru micro-
markets lost its charm
post the commencement
of the Bengaluru
International Airport in
North Bengaluru
We anticipate North and
East Bengaluru to be the
biggest EIÎLLDKLIV of
the BIA and expect them to
emerge as the new Central
Business Districts (CBD) of
Bengaluru within the next
decade
`1,150 bn.
Investment earmarked for
North Bengaluru
the GOK is also developing the Peripheral Ring
Road (PRR) as an eight lane expressway along
the periphery of Bengaluru for a total road length
of 116 km. that will connect all the periphery
regions to the airport. Availability of vast vacant
land parcels close to the airport and along the
road leading to the airport has enabled GOK to
plan projects worth `1,150bn., including
Devanahalli Business Park (DBP), Aero SEZ,
Information Technology Investment Region (ITIR),
Bio-Technology, Aerotropolis and many other
recreational developments.
Further, the GOK has also invited many
cRrpRralcs lR scl-up lhcr unls]Rccs n 1Rrlh
Bengaluru. Many large companies such as HAL,
BEML, Infosys, Dynamatic Technologies Ltd, IFCI
and Tata Elxsi have signed an MoU with the GOK.
55 multinational IT companies including Infosys,
Wipro, TCS and Cognizant have evinced interest
n scllng up lhcr Rccs n lhc lTlk. 2vcr 1.2 mn.
people are expected to get direct employment
IrRm lhc lTlk and Rvcr 2.8 mn. ndrccl
employment. Employment due to the ITIR in itself
speaks about the growth of this region. These
developments are expected to completely change
1Rrlh cngauru IrRm an uncxclng RcalRn lR a
bustling self-sustaining city.
Growth of the residential market in this zone has
been primarily along the Outer Ring Road (ORR)
such as hcbba, SahaNara 1agar, 0Rar's CRRny,
kT 1agar, anaswad, 0ahadcvapura and
1agwara. hRwcvcr, pRsl cRmmcnccmcnl RI lhc
lA n 2008, lhc slrclch IrRm hcbba lR lA s
2007 2008 2009 2010
50,000
40,000
30,000
20,000
10,000
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF NORTH BENGALURU
2011
2012*
witnessing residential developments. Proximity to
the airport and to the commercial hub of
Manayata Tech Park has made this pocket of
Bengaluru the preferred residential location by
the IT population.
As Rn Scplcmbcr 2012, 1Rrlh cngauru has wlncsscd
a lRla RI /2,329 rcsdcnla unls bcng aunchcd
sncc 2007. 2I lhs a lRla RI 28,785 unls havc
bccn absRrbcd rcsulng n 32% rcmanng
unsold. Over the years, unsold units have risen
mainly on account of low pace of absorption due
to uncertain global markets. Announcement of
ncw prRjccls has cRmc dRwn n lhc rsl 9m
RI 2012, as Rny 5,075 unls havc bccn aunchcd
agansl lhc 13,355 unls aunchcd n 2011. Thc
excess supply from the previous years has had an
advcrsc mpacl Rn lhc unsRd unls' pcrccnlagc.
INVESTMENT
advisory REPORT
2007 2008 2012* 2009 2010 2011
TREND IN NORTH BENGALURU
7,069
5,608
3,953
13,355
5,075
7,269
12%
14% 14%
15%
27%
32%
42,329 units
launched and 28,785 units
absorbed since 2007 in
North Bengaluru
4 mn. direct and
indirect employment to be
genereated over next 3
decade in North
Bengaluru
Existing
Infrastructure
HEBBAL TO BIA ROAD
A 3.72 km. six-lane elevated road over the
existing road is under construction. The project
w havc a scrcs RI scvcn yRvcrs IrRm hcbba lR
the Trumpet Junction near the airport. The
elevated road starts from the Kodigehalli gate
and connects to the international airport. This
prRjccl by lhc 1alRna hghway AulhRrly RI lnda
(1hAl) s al varRus slagcs RI cRnslruclRn IrRm
hcbba lR lhc cahanNa raway-undcr-brdgc. ll
w asR havc yRvcrs and undcrpasscs. 2ncc lhc
prRjccl s cRmpclcd l w cnhancc cRnncclvly
wlh lhc cly ccnlrc and lhc drvc lR lhc arpRrl
w bccRmc scamcss and sgna-Ircc. Ths
project is expected to reduce the travel time
bclwccn hcbba lR lA IrRm /5 mnulcs lR 20-25
mnulcs.Thc prRjccl s cxpcclcd lR bc rcady by
2013. Thc 0Rddabaapur kRad, hcnnur kRad,
cahanNa and hcbba arcas lhal arc cRnncclcd
wlh lhc lnlcrnalRna ArpRrl kRad arc nRw
hRlspRls IRr prRpcrly dcvcRpmcnl.
As pcr lhc prRjccl pan, lhc 3.72 Nm. slrclch IrRm
lhc hcbba yRvcr lR lhc bcgnnng RI cahanNa
ypass (ncar 6KvK) w bc an ccvalcd slrclch.
FrRm lhc cahanNa ypass lR lhc Trumpcl nlcr-
changc (lhc galcway lR lA), a lhc majRr
OUTER RING ROAD (ORR)
2ulcr kng kRad pRpuary rcIcrrcd lR as lhc 2kk
s a slrclch cRnncclng hcbba n lhc 1Rrlh and
SN Rard }unclRn n lhc SRulh. Ths 62 Nm.
slrclch has bccn dcvcRpcd as an lT grRwlh
cRrrdRr n lhc asl lcn ycars. Thc 2kk slrclch can
bc Iurlhcr casscd nlR IRur parls bascd Rn ls
rcspcclvc characlcrslcs as a) hcbba - Kk Puram
b) Kk Puram - 0aralhaha c) 0aralhaha -
Sarjapur kRad and d) Sarjapur kRad - SN Rard
}unclRn. 2I lhcsc (a) and (b) IRrm parl RI nRrlh-
casl cngauru and (c) and (d) IRrm parl RI
sRulh-casl cngauru. Thc ncw grRwlh cRrrdRr
IRr lT dcvcRpmcnl Rpcncd up n cngauru Rny
n 2002 aIlcr lhc cRmpclRn RI lhc 2kk. Thc 2kk
nRw accRunls IRr amRsl 35% RI lhc lRla Rcc
spacc RI cngauru. PrRxmly lR lhc arpRrl and
INVESTMENT
advisory REPORT
Upcoming
Infrastructure
lR lhc cRmmcrca hub such as 0anyala Tcch
ParN, k0Z LcRspacc, k0Z LcRzcn, Saarpura
Suprcmc, Ccssna usncss ParN, Fcrns lcRn, and
agmanc wRrd TcchnRRgy Ccnlrc has madc lhs
pRcNcl lhc mRsl sRughl aIlcr dcslnalRn. 6rRwlh
RI lhc rcsdcnla marNcl n lhs zRnc has bccn
prmary aRng lhc 2kk such as hcbba,
SahaNara 1agar, Kk Puram, whlccd, Cv kaman
1agar, lndranagar, 0aralhaha, candur,
varlhur kRad, 0Rar's CRRny, kT 1agar,
anaswad, 0ahadcvapura and 1agwara. Thc
0Rddabaapur kRad, hcnnur kRad and hcbba
areas that are connected with the international
arpRrl rRad arc nRw hRlspRls IRr prRpcrly
dcvcRpmcnl.Thc pan lR maNc lhc 2ulcr kng
kRad (2kk) a sgna-Ircc, scamcss cRrrdRr w
have far-reaching implications on the growth
along its route.
junclRns w bc madc sgna-Ircc. TRwards lhc
cnd, lwR yRvcrs w cRmc up al lhc KRgu CrRss
and vdyanagar junclRns, whc IRur
underpasses will come up at other crucial
junctions.
ELEVATED CORRIDOR FROM
CENTRAL SILK BOARD JUNCTION
TO JAYAMAHAL ROAD
A 15 Nm. ccvalcd cRrrdRr cRnncclng Ccnlra SN
Rard }unclRn wlh }ayamaha kRad s cnvsagcd
lR casc lhc lrac Rw bclwccn 1Rrlh and SRulh
cngauru. Ths w asR Iaclalc n rcachng lhc
ncw nlcrnalRna arpRrl n lhc 1Rrlh.
MONORAIL
A 31 Nm. mRnRra has bccn prRpRscd by lhc
cngauru Ar ka LnN Lld. (AkL) lhal w
cRnnccl }P 1agar (n sRulh) wlh hcbba (n lhc
nRrlh). AIlcr cRmpclRn, lhs prRjccl w IunclRn
as a feeder service to the metro rail as well as to
the international airport.
ORR accounts for almost
35%of the total RLI
space of Bengaluru.
Hebbal to BIA road project
is expected to reduce the
travel time between Hebbal
to BIA from 45 minutes to
20-25 minutes
EMPLOYMENT HUBS IN NORTH BENGALURU
SECTOR PROJECT NAME MAJOR COMPANIES
IT/ITeS Manyata Embassy Business Park Philips, IBM, ANZ
INVESTMENT
advisory REPORT
Employment Indicators in
North Bengaluru
Further, there is the aerospace SEZ that is being
planned here besides three industrial parks on
3,000 acres of land. Many renowned hotels like
Oberoi, JW Marriot and Fortune are also planned
here. There is plenty of commercial development
in the pipeline, with several developers having
bought huge land parcels for development in the
stretch from Hebbal to Devanahalli. With so much
commercial development, we expect residential
development to follow suit in this region making
it the most sought after destination in the next 4-
5 years.
Few builders who have planned residential
projects in North Bengaluru are Brigade Group
with their Gateway, Ozone Developers with their
integrated project called Urbana, Prestige with
their Ozone and Golfshire Projects, Hiranandani
Upscale with their Chancery, Nitesh with their
Columbus Square and Sobha with their Althea.
Sncc 2008 Rvcr 7.5 mn. sq. Il. RI Rcc spacc
ncudng caplvc Rccs has bccn cRnslruclcd n
METRO-LINE
A 24 km. North-South (NS) corridor connecting
Hesaraghatta circle near Nagasandra (north) with
Puttenahalli (south) has been proposed. Along
with this, there are also plans (under Metro Phase
II) to extend the Metro line from Hesarghatta up
lR lhc lA. Thcsc sgncanl prRjccls w add
value to the property along this route.
The region has a demand for residential,
commercial and retail spaces. With plans for the
development of an aerospace Special Economic
Manyata Embassy Business
Park has over 7.5 mn. sq. ft.
stock and 9.4 mn. sq. ft.
under construction
North Bengaluru region
is expected to
generate direct and
indirect employment of
over 4-4.5 mn. in
the next decade
Zone (SEZ), IT SEZ and creation of separate
workspaces in the vicinity of the airport, there is
also a huge supply of residential layouts.
HIGH SPEED RAIL LINK (HSRL)
A 33 km. HSRL has been proposed and will
connect the city centre with the airport. The HSRL
will operate between Cubbon Road and BIA with
two halts between them, one at Hebbal and the
other at Yelahanka. The HSRL will run parallel to
the expressway.
North zone of the city has a host of civic
infrastructure projects, large commercial
developments and new residential options that
have changed the characteristics of the localities
over the last few years. Bengaluru International
Airport has been the main catalyst for the change
in this region. The monorail, Metro Rail and
Bengaluru-Mysore Infrastructure Corridor (BMIC)
project as well as the social infrastructure
facilities are together set to drive Bengaluru
further ahead.
The existing major employment driver in this
region is the IT/ITeS sector. However, in future the
incremental employment in this region will be
generated from the planned commercial
developments such as ITIR, Aero SEZ, Devanahalli
Business Park, Aerotropolis and Global Financial
District. Cumulatively the GOK has envisaged an
investment of `1,150bn. in the North Bengaluru
region and is expected to generate direct and
indirect employment of over 4-4.5 mn. in the next
decade.
1Rrlh cngauru. 2vcr lhc ncxl vc ycars 9.6 mn.
sq. Il. RI Rcc spacc s cxpcclcd lR bc addcd lR
lhc cxslng nvcnlRry lhcrcby laNng l lR 17.1 mn.
sq. Il. by lhc cnd RI 2017. hRwcvcr, dcmand s
cxpcclcd nRl Rny IrRm lhc lT]lTcS scclRr bul asR
IrRm lhc acrRspacc scclRr, Rgslc cRmpancs
and nanca scclRrs. Lxccssvc dcmand IRr
qualy Rcc spacc has Ncpl vacancy cvcs n
Rwcr sngc dgls n 2011 and wc cxpccl l lR
rcman al lhal cvc l 2017. wc IRrccasl an
ncrcmcnla 7.3 mn. sq. Il. RI Rcc spacc lR bc
absRrbcd Rvcr lhc ncxl vc ycars.
PrcIcrcncc RI lhc cRmpancs lR bc n cRsc
prRxmly RI lhc arpRrl, and cmpRyccs'
prcIcrcncc lR slay cRscr lR lhcr wRrNpacc w
Rvcra drvc lhc dcmand IRr cRmmcrca as wc
as rcsdcnla rca cslalc n lhs RcalRn.
INVESTMENT
advisory REPORT
before
2008
2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E
20
18
16
1/
12
10
8
6
/
2
NORTH BENGALURU OFFICE
SPACE DYNAMICS
EAST BENGALURU
Lasl cngauru had smar characlcrslcs as lhal
RI cngauru cly. cng a nRndcscrpl zRnc unl
lhc md 1990s, lhc rcgRn gancd prRmncncc Rny
aIlcr lhc lT bRRm RI lhc 1990s. PrRxmly lR lhc
cly ccnlrc and hugc avaably RI and allraclcd
many lT]lTcS cRmpancs hcrc. 2vcr 30 mn. sq. Il.
RI lT]lTcS spacc s RpcralRna as RI }unc 2012.
0ajRr lT]lTcS hubs Nc Saarpura hamarN, lTP,
k0Z LcRspacc, Prcslgc ShanlnNclan and
agmanc wRrd Ccnlrc havc madc lhs pRcNcl RI
cngauru lhc prcIcrrcd rcsdcnla RcalRn by lT
pRpualRn. Furlhcr, wlh lhc grRwlh RI
pRpualRn, lhs rcgRn had a grcal dca RI sRca
nIraslruclurc lR prRvdc cnlcrlanmcnl RplRns lR
lhc rcsdcnls. 6rRwlh RI lhc rcsdcnla marNcl n
lhs zRnc has bccn prmary aRng lhc whlccd
kRad, Kk Puram, 2d 0adras kRad, 2d ArpRrl
kRad, lTPL, Cv kaman 1agar, 0ahadcvapura,
hRRd Crcc and lndra 1agar.
As Rn Scplcmbcr 2012, Lasl cngauru has wlncsscd a
lRla RI 23,689 rcsdcnla unls bcng aunchcd
sncc 2007. 2I lhs a lRla RI 15,9/6 unls havc
bccn absRrbcd rcsulng n 33% rcmanng
unsRd. 2vcr lhc ycars, unsRd unls havc rscn
many Rn accRunl RI Rw pacc RI absRrplRn duc
lR hgh numbcr RI aunchcs. AnnRunccmcnl RI
ncw prRjccls has cRnlnucd wlh ls hgh
mRmcnlum and 9m 2012 wlncsscd lhc aunch RI
5,/15 unls as cRmparcd lR 6,/00 unls aunchcd
lhrRughRul 2011. Lxccss suppy IrRm lhc prcvRus
ycars has an advcrsc mpacl Rn lhc unsRd unls'
pcrccnlagc.
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF EAST BENGALURU
2007 2008 2009 2010
25,000
20,000
15,000
10,000
5,000
N
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s
SlRcN Cumualvc AbsRrplRn % RI unsRd unls
2011
2012*
0%
/% /%
10%
21%
33%
Currently the total RLI
spaLI V1RLN L^ ^RKth
Bengaluru is 7.7 mn. sq.ft.
of \ILLI 6.26 P^. VT. ft. is
RLLISLII
23,689 I^L1V ODI^LIII
and 15,946 units absorbed
VL^LI 2UU7 in East
Bengaluru
Over 30 mn. sq. ft. of
IT/ITeS spaLI LV operational
as of June 2012 in East
Bengaluru
We expeL1 another 9.5
mn. sq.ft. of new RLI
spaLI to beLome
operational by 2017
Existing
Infrastructure
PERIPHERAL RING ROAD (PRR)
A 116 km. PRR connecting the entire
peripheral arterial road linking all the major
highways has been proposed. The major
connecting areas would be Hosur Road
(south) to Tumkur Road (west) via KR Puram
(east), Bellary Road (north), Old Madras
Road and Sarjapur Road (south). The PRR is
expected to ease the congestion on the
ORR.
METRO-LINE
A 15.5 km. metro rail line has been proposed
under Phase-II of the Bengaluru Metro. This
is the extension of the existing metro line
which runs between Byappanahalli and MG
Road. The new metro line stretch, a part of
East-West corridor, will start from the
yappanaha and lcrmnalc al whlccd
on the East. This corridor has 14 metro
stations - Jyothipuram, KR Puram,
Narayanapura, Mahadevapura,
Garudacharpalya, Doddanakundi,
Visvesvaraya Industrial Estate,
Kundalahalli, Vaidehi Hospital, Satyasai
Medical Institute, ITPL, Kadugodi, Ujwala
vdyaaya and whlccd.
CONNECTIVITY FROM OLD
MADRAS ROAD TO DEVANAHALLI
The distance between the Old Madras Road
(OMR) in the East and Devanahalli in the North is
over 40 km. There are two major routes that
connect the city centre in the east with the airport
ncar 0cvanaha n lhc nRrlh. Thc rsl rRulc -
Baiyappanahalli Hebbal BIA is a 40 km. drive
INVESTMENT
advisory REPORT
before
2008
2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E
60
50
40
30
20
10
EAST BENGALURU OFFICE
SPACE DYNAMICS
along the ORR. The second route starts on the NH-
75 ncar ayappanaha R lhc 2d 0adras kRad.
It then connects with the airport via NH-648 near
the Hoskote Industrial area. This stretch has also
witnessed a lot of residential traction post the
commencement of BIA. Manyata Tech Park,
whlccd kRad, lTP, hRsNRlc lnduslra ParN
and other IT space on the ORR are the major
developments fuelling demand for residential
houses in this pocket.
Upcoming
Infrastructure
2007 2008 2012* 2009 2010 2011
TREND IN NORTH BENGALURU
4,691
2,961
429
3,795
6,399
5,415
A 15.5 km. metro rail
line has been proposed
under Phase-II of the
Bengaluru Metro
The new metro line
stretch, a part of East-
West corridor, will start
from the Byappanahalli
and terminate at
\IL1IIOI on the East
INVESTMENT
advisory REPORT
EMPLOYMENT HUBS IN EAST BENGALURU
IT/ITeS Bagmane World Centre EMC2
IT/ITeS Ferns Icon Lenovo, ST Micro Electronics
IT/ITeS ITPB Zone ABB, Accenture, Amazon
East Bengaluru
The IT/ITeS sector continues to be the major
employment driver of this region. Over 30 mn. sq.
Il. Rcc spacc was Rccupcd as RI }unc 2012.
Major IT/ITeS hubs in this region include
Salarpuria Hallmark, ITPB, RMZ Ecospace,
Prestige Shantiniketan and Bagmane World
Ccnlrc. Thc Rvcra dcmand IRr lhs RcalRn w
bc drvcn by lwR majRr characlcrslcs, a) lT]lTcS
employees preference to stay close to their
wRrNpacc and b) wc cslabshcd sRca
infrastructure including organized retail market.
Thc prRpRscd Pkk w cnhancc cRnncclvly RI a
the industrial hubs of Bengaluru. One node of
this PRR is Hoskote - an upcoming industrial and
aulRmRbc hub. 0any }apancsc cRmpancs havc
evinced interest in setting up their plants here.
Sncc 2008 mRrc lhan 37 mn. sq. Il. RI Rcc
space has been constructed in Eastern
cngauru. 2vcr lhc ncxl vc ycars wc cxpccl
Rvcr 2/ mn. sq. Il. RI Rcc spacc lR bc addcd lR
the existing inventory taking the total stock to 57
mn. sq. Il. by lhc cnd RI 2017. lT]lTcS scclRr
remains the single largest demand driver for
lhcsc spaccs. Currcnly 20% RI lhc Rcc spacc n
the region is vacant and this is expected to
rcducc lR 16% by 2017. wc IRrccasl an
ncrcmcnla 20 mn. sq. Il. RI Rcc spacc lR bc
absRrbcd Rvcr lhc ncxl vc ycars.
INVESTMENT
DESTINATIONS IN
BENGALURU
Hebbal located in the northern region and KR
Puram in the eastern region are the most
promising residential destinations in Bengaluru.
Proximity to the Manyata Tech Park near Hebbal
and whlccd kRad ncar Kk Puram maNcs lhcsc
destinations an ideal residential location.
Additionally, connectivity of the eastern region
wlh lhc nRrlhcrn rcgRn lhrRugh 2kk and lhal RI
lhc cly ccnlrc wlh lhc arpRrl n lhc nRrlh
lhrRugh 1h-7 (cary kRad) havc mprRvcd lhc
commuting experience. Further, the upcoming
Pkk whch s cxpcclcd lR cRnnccl a lhc
pcrphcra dslrcls w casc cRnncclvly IrRm lhc
eastern region to the airport. Proposed
infrastructure projects such as the monorail,
Metro and High Speed Rail Link is expected to
further enhance the connectivity from the city
ccnlrc lR lhc arpRrl. Thcsc dcslnalRns w
bcncl mmcnscy IrRm lhc abRvc mcnlRncd
developments.
The GOK is carrying out numerous infrastructure
projects across the cities that are in various
stages of construction. These projects are
expected to bring about phenomenal changes in
lcrms RI cRnncclvly amRng dcrcnl RcalRns
wlhn lhc cly and rcducc lhc cRmmulng lmc.
Thcsc IaclRrs w havc a cRnsdcrabc mpacl Rn
lhc rca cslalc prccs acrRss lhc cly. hRwcvcr,
lhc prcc apprccalRn w nRl bc unIRrm acrRss
lhc cly and w vary bascd upRn varRus lhcmcs.
wc bccvc lhal Rvcr a pcrRd RI lhc ncxl vc
ycars 1Rrlh-Lasl cngauru w prRvdc lhc
highest appreciation compared to other zones.
Based on the announced infrastructure projects,
cRupcd wlh prRxmly lR lhc lT cRrrdRr, wc havc
shRrl-slcd lwR dcslnalRns lhal RRN prRmsng
in this zone viz. Hebbal and KR Puram. These
destinations share some common characteristics
among themselves making them ideal residential
Since 2008 more than 37
mn. sq. ft. of RLI VSace
has been constructed in
East Bengaluru
\I IXSIct another 24
mn. sq.ft. of new RLI
VSace to become
RSIKDtional by 2017
We believe Hebbal and KR
Puram to SKovide the
highest DSSKIciation in
Bengaluru market
INVESTMENT
advisory REPORT
destinations. These destinations are in close
prRxmly lR lhc lT cRrrdRr RI hcbba, whlccd
Road and the ORR (Hebbal-KR Puram-
Marathahalli stretch). Additionally, these
destinations are also well connected with the
Bengaluru International Airport and Bengaluru
city centre. The upcoming monorail, Metro, HSRL
and elevated road will enhance connectivity
between the city centre and the airport.
Following are the factors that will have a positive
impact on the chosen destination:
. Bengaluru will witness an incremental demand
RI //./ mn. sq. Il. RI Rcc spacc Rvcr lhc ncxl
vc ycars, prmary drvcn by lhc lT]lTcS
sector. More than 60% of this will be within
North-East Bengaluru.
. Bio-technology industry of Karnataka is
forecasted to grow at an annual average rate
of 10% over the next six years from USD
170mn. in 2011 to USD 272mn. in 2017. A large
number of these units are expected to be set-
up in the north-east region mainly on account
of favourable regulations, availability of vast
land parcels, proximity to the city centre and
the talent pool of the city.
. The distinct feature of these destinations will
be a) proximity to the major employment hubs
of Bengaluru i.e. Manyata Tech Park in the
1Rrlh and whlccd and lTPL n lhc Lasl, b)
quick and easy accessibility to the city centre
and rcla hubs IRr day rcqurcmcnls, and c)
distance to the airport.
. Additionally, the upcoming metro, monorail,
HSRL corridor between Hebbal and BIA will
further boost the connectivity of this location.
. Proposed PRR will further enhance the
connectivity from all the peripheral districts.
More than 60%of the
incremental RLI VSace
to be in North and East
Bengaluru
Bio-technology industry in
Karnataka is estimated to
growat 10% CAGR from USD
170mn. in 2011 to USD 272mn.
in 2017
PRICE FORECAST
* Figures in `/sq.ft
2012
Hebbal RMV/Sanjay Nagar
`6,350
2017E
`8,230
`9,145
`4,250
DESTINATION
HEBBAL
Hebbal was once the end of the northern city limit
of Bengaluru. However with Bengalurus
horizontal growth, Hebbal has witnessed a
complete make-over in the last decade. Hebbal,
previously, endowed with a calm and serene
environment has now become quite active and
lively. Hebbal gained importance as a destination
with the establishment of Bengaluru International
Airport near Devanahalli which is 30 km. away
from Hebbal. It has now emerged into one of the
IT/ITeS hub, housing many tech parks and
campuses of IT companies. The infrastructure of
Hebbal is outstanding; it has well linked roads
cRnncclng dcrcnl parls RI lhc cly. Ths w bc
further enhanced once the monorail, HSRL and
Metro commence in the next 4-5 years that will
connect the city-centre with the airport. This is
expected to immensely increase the residential
prices in Hebbal.
There was a dearth of residential projects in
Hebbal before 2008. It witnessed the launch of a
mere 110 residential units in 2008.
Developers got attracted to this destination post
Airport near Devanahalli in 2008. On account of
this, 372 new residential units were launched in
2010, which on a year-on-year basis registered a
rise of 285%.
As on September 2012, 557 units out of the total
1,604 units launched were unsold, implying 34.7%
of the total inventory as unsold.
We have benchmarked Hebbal to RMV/Sanjay
Nagar which is an established micro-market and
has characteristics similar to Hebbal. Going
forward, we expect the absorption rate to
increase due to the reasons stated earlier and
this will positively impact prices in Hebbal.
Currently, Hebbal prices are 33% lower than our
benchmarked micro-market. We forecast this
discount to narrow down to 10% by the end of 2017
resulting in Hebbal prices moving up from
`4,250/sq.ft. to `8,230/sq.ft.
2007 2008 2009 2010
1,800
1,500
1,200
900
600
300
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF HEBBAL
2011
2012*
1%
33%
8%
35%
Launches
2007 2008 2012* 2009 2010 2011
TREND IN HEBBAL
110
97
372
666
721 units launched
and 233 units absorbed in
last 21 months in Hebbal
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5% 4%
We forecast prices in
Hebbal to appreciate by
94% from 2012 to 2017
305
55
PRICE MOVEMENT
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
* Figures in ` per sq.ft
2013E 2014E 2015E 2016E 2017E 2007 2008 2009 2010 2011 2012
Hebbal RMV/Sanjay Nagar Discount Margin
`3.6 mn. and
`5.3 mn. are the
minimum ticket size for
investment in Hebbal for a
2 BHK and 3 BHK Apartment
respectively
Investment Options in Hebbal
INVESTMENT TICKET SIZE
Apartment Size in sq.ft. Ticket Size in ` mn.
SELECT PROJECTS
Source: Knight Frank Research Source: Knight Frank Research
Project Developer No. of Launch Completion
Units Date Date
Waters Equinox 380 Sep-11 Mar-16
Edge
Sobha Sobha 498 Jun-11 Mar-15
City Developers
1250 - 1850 5.3 - 7.9
850 - 1100 3.6 - 4.7
3BHK
2BHK
INVESTMENT
advisory REPORT
33%
10%
Launches
2007 2008 2012* 2009 2010 2011
TREND IN KR PURAM
DESTINATION
KR PURAM
Kk Puram Rcalcd Rn 1h-75 R lhc 2d 0adras
kRad s 3.1 Nm. IrRm ayappanaha 0clrR
slalRn and s jusl 8.2 Nm IrRm 06 kRad. lls
prRxmly lR lhc lT cRrrdRr RI whlccd as wc as
RI 0anyala Tcch ParN has madc l lhc mRsl
sRughl aIlcr dcslnalRn amRng lhc lT cmpRyccs.
Thc prRpRscd Pcrphcra kng kRad (Pkk) w
cRnnccl Laslcrn cngauru wlh hRsNRlc whch s
18 Nm. IrRm lhc Kk Puram. wdcnng RI lhc 2d
0adras kRad hghway lR cghl-anc has
enhanced the connectivity; the commute time to
lTPL ncar whlccd has rcduccd lR 15-20
minutes. Hence, KR Puram-Budigere Cross stretch
has emerged as a good destination. Proximity to
lhc lT hub RI whlccd, mprRvcd cRnncclvly
wlh lhc arpRrl and prRxmly lR lhc
yappanaha mclrR ra hub havc gcncralcd
nlcrcsl amRng prRspcclvc buycrs.
2vcr 3,600 unls wcrc aunchcd sncc 2008 n Kk
Puram mcrR-marNcl. Ths cd lR an ncrcasc n
unsRd unls, whch as a pcrccnlagc lR lRla
nvcnlRry Ncpl Rn rsng sncc 2009. As Rn Scplcmbcr-
2012, 28.6% RI lhc lRla unls slRRd unsRd n Kk
Puram as there is still some supply overhang of
the previous year.
wc havc bcnchmarNcd Kk Puram wlh whlccd
whch s Rnc RI lhc mRsl cslabshcd mcrR-
marNcls RI Lasl cngauru. 6Rng IRrward, wc
cxpccl lhc absRrplRn ralc lR ncrcasc duc lR lhc
IaclRrs slalcd carcr and lhs w pRslvcy
impact prices in KR Puram. Currently, KR Puram
prccs arc 37% Rwcr lhan lhc cslabshcd
marNcl. wc IRrccasl lhs dscRunl lR narrRw dRwn
lR 15% by lhc cnd RI 2017 rcsulng n Kk Puram
prices moving up from `3,245/sq.ft. to
`6,200]sq.Il.
2007 2008 2009 2010
7,000
6,000
5,000
/,000
3,000
2,000
1,000
SlRcN Cumualvc AbsRrplRn % RI unsRd unls
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF KR PURAM
2011 2012*
6,095 units launched
in KR Puram since 2007, of
which 42% launched in last
33 months
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CONNECTIVITY TO
IMPORTANT LOCATIONS
0slancc Travc lmc
y kRad (Lxslng) y 0clrR ka (PrRpRscd)
:KLWHHOG
:KLWHHOG
13
km
52
mins
13
km
26
mins
1,290
881
254
1,118
1,019
414
17% 17%
16%
22%
25%
29%
Over the next VI years,
we expect KR Puram to
follow\IL1IIOI in terms
of price
We forecast prices in KR
Puram to appreciate by
91% from 2012 to 2017
`3.1 mn. and
`4.7 mn. are the
minimum ticket size for
investment in KR Puram for
a 2 BHK and 3 BHK
Apartment respectively
SELECT PROJECTS
Units Date Date
Purva Puravankara 306 Mar-11 Sep-14
Midtown
Pashmina Pashmina 250 Jan-12 Dec-14
Waterfront Developers
Purple Purple 135 Jan-11 Dec-13
Woods Estates
1450 - 2100 4.7 - 6.8
950 - 1220 3.1 - 4.0
3BHK
2BHK
INVESTMENT
advisory REPORT
PRICE MOVEMENT
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
KR Puram whlccd Discount Margin
2013E 2014E 2015E 2016E 2017E 2007 2008 2009 2010 2011 2012
PRICE FORECAST
2012
KR Puram whlccd
`5,175
2017E
`6,200
`7,370
`3,245
37%
15%
Investment Options
in KR Puram
INVESTMENT
advisory REPORT
HIDDEN GEM
Yelahanka
CONNECTIVITY TO
IMPORTANT LOCATIONS
FROM YELAHANKA
* By road
Distance
18
km
17
km 19
km
Yelahanka located further north of Hebbal is at a
distance of 19km. from the Bengaluru
International Airport (BIA). It was initially
envisaged as the satellite city of Bengaluru, but is
now a part of the BBMP The Municipal
Corporation of Bengaluru. The NH-7 provides
excellent connectivity with the airport as well as
the city centre.
The destination gained prominence only after the
commencement of BIA at Devanahalli. However,
this was the sole reason for the swift rise in the
real estate prices of Yelahanka. The current prices
havc arcady bul-n lhc bcncl arsng Rul RI lhc
announced projects, which we believe will see
light only after 2017. As on date, Yelahanka is still
short of social infrastructure including basic
amenities like water and electricity. Moreover, the
organised retail market is still non-existent in this
destination.
The Government of Karnataka has proposed
numerous infrastructure projects including
widening of elevated road, High Speed Rail Link
and Metro Rail to improve the connectivity
between the airport and Bengaluru City Centre.
Also, commuter rail system has been planned to
connect Devanahalli with Yeshvantpur via
Yelahanka.
Further, the Government of Karnataka has formed
Bengaluru International Airport Area Planning
Authority (BIAAPA) to ensure organized
development of Bengaluru North, Devanahalli
and Dodaballapur Taluka. A total investment of
`1,150bn. has been earmarked in order to make
North Bengaluru a self-sustaining business hub.
Some of the major investments are Information
Technology Investment Region (ITIR) in
Devanahalli, Aero SEZ an aviation hub in
Devanahalli, Devanahalli Business Park and
Aerotropolis. The Government of Karnataka is in
talks with banking giants to set up a Global
Financial District near Devanahalli. These
developments are expected to completely change
North Bengaluru from an unexciting location to a
bustling self-sustaining city.
Cumulatively, the above developments have the
potential to generate 4 mn. direct and indirect
jobs in North Bengaluru over the next two
decades. Hence, we believe that Yelahankas
eventual evolution as a Peripheral Business District will
give birth to a thriving resiential real estate destination.
BBA E
L H
Yelahanka located
further north of Hebbal is
at a distance of 19 km
Yelahanka is still short of
social infrastructure and
basic amenities
Bengaluru International
Airport Area Planning
Authority formed by
Government of Karnataka
Destination gained
prominence only after the
commencement of
Bengaluru INTERNATIONAL
AIRPORT
INVESTMENT
advisory REPORT
8.70 1.9% 6.56 2.9%
CHENNAI METROPOLITAN REGION POPULATION
5.42 2.4%
1991 2001 2011
Chennai, the capital of Tamil Nadu, is the fourth most populous city in
India and serves as a gateway to Southern India through its strategically
located port. Chennais urban agglomeration, also known as the Chennai
Metropolitan Region (CMR), is spread over 1,189 sq.km. and consists of
parts of Thiruvallur and Kancheepuram districts apart from Chennai city.
As per Census 2011, the total population of CMR was 8.7 mn.
The development of the CMR is entrusted to the nodal planning agency
Chennai Metropolitan Development Authority (CMDA) which prepares the
master plan for the region. CMDA in September 2008 prepared the
Second Master Plan for Chennai Metropolitan Area, 2026 outlining the
detailed development plan along with land use, transportation, housing
and other important aspects of the CMR.
CHENNAI
Major Roads
Railway Line
South Zone
West Zone
Central Zone
North Zone
U/C Metro Corridor I
U/C Metro Corridor II
INVESTMENT
advisory REPORT
CHENNAI MAP
Chennai Metropolitan
Region is spread over
1,189 sq.km. with a
population of
8.7 mn.
Market
Overview
DESTINATIONS
Central Nungambakkam, Boat Club, Anna
Nagar, Kilpauk, T Nagar,Mylapore,
R.A Puram
West Sriperumbudur, Mogappair, Porur,
Ambattur, Poonamallee
North Ayanavaram, Tondiarpet,
Madhavaram, Perambur
South Old Mahabalipuram Road (OMR),
GST Road, Adyar, Velachery,
Medavakkam
Chennai is divided into four broad zones: North,
Central, South and West. It may be noted that
being a coastal city, Chennai does not have an
eastern market and faces the Bay of Bengal.
North Chennai is primarily an industrial area
dotted with various locomotive workshops and
port related activities. The two major ports
namely Chennai Port and Ennore Port are located
in this region. Non-availability of vacant land,
narrow arterial roads and lack of employment
opportunities have restricted the real estate
growth of this region as compared to other parts
of the city. Destinations such as Tondiarpet,
Madhavaram and Perambur are the primary
residential locations with large under-
construction projects in these areas. Residential
demand is driven by the business community,
traders and public sector employees here.
Central Chennai is the commercial heart of the
cly wlh varRus cRrpRralc Rccs Rcalcd n lhc
Central Business District (CBD) areas of Anna
Salai, Nungambakkam, Egmore, Nandanam and
others. Excellent connectivity with various parts
of the city, good physical and social infrastructure
and presence of organized retail have ensured
the highest property prices in this part of the city.
Locations such as Boat Club Road, Poes Garden,
Nungambakkam, T Nagar, Mylapore and RA
Puram are some of the prominent residential
areas. Majority of the residential development in
the central locations comprises bungalows and
independent residential units while some
pockets like Alwarpet, Kilpauk and Anna Nagar
are witnessing growth in high-rise construction as
well.
The western part of the city has some of the most
upcoming locations. The saturation of land banks
in Central Chennai has seen westward movement
of residential development. Electronic hardware
corridor in Sriperumbudur and Auto & Auto
Ancillary manufacturing units in Oragadam have
rcsulcd n ncrcascd dcmand IRr aRrdabc
residential units in this region. Multinationals like
Nokia, Dell, Samsung, Saint-Gobain, Renault-
Nissan and Hyundai have set up their units here.
However, lack of social infrastructure, absence of
organized retail and distance from the city centre
have restricted growth of the residential market in
this zone.
South Chennai, along the Old Mahabalipuram
Road (OMR) and Grand Southern Trunk (GST) road
is rapidly developing as a self-sustaining hub
with the presence of a large number of IT SEZs, IT
Parks and manufacturing units. Nodes such as
Perungudi, Sholinganallur and Siruseri on the
OMR along with Tambaram and Mahindra World
City on GST road have created enormous
employment opportunities in this region. This has
inherently led to the development of the
residential market in South Chennai.
Additionally, the focus of the state government in
providing excellent road connectivity along these
nodes has further helped in the development of
this region.
2007 2008 2012* 2009 2010 2011
TREND IN CHENNAI
14,441
15,505
12,702
23,803
26,152
12,633
INVESTMENT
advisory REPORT
Chennai market has
witnessed the launch of
more than 105,236
units since 2007
2007 2008 2009 2010
5%
4%
7%
12%
120,000
100,000
80,000
60,000
40,000
20,000
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RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF CHENNAI
2011
21%
2012*
25%
The advent of the IT sector along with the setting
up of large manufacturing units by multi-national
companies have changed the dynamics of
Chennai real estate market. Apart from
generating thousands of new jobs for the local
residents, Chennai has been attracting a large
pool of migrants into these sectors from across
the country. This has enabled the real estate
market to grow at a tremendous rate during the
asl vc ycars, cspccay lhc rcsdcnla scgmcnl
which witnessed the launch of more than 105,236
units since 2007.
During 2010 and 2011, more than 49,955 units
were launched in Chennai. However, only 33,938
units were absorbed during this period resulting
n a sgncanl jump n lhc unsRd unls'
percentage.
Thc pcrccnlagc RI unsRd unls durng lhc rsl
nine months of 2012 has further increased despite
the number of new launches falling drastically.
This is primarily because of the supply overhang of
the previous years.
Chennai is land locked on the eastern side by the
Bay of Bengal, thereby restricting its growth to
the remaining three sides. Backed by excellent
rail and road connectivity, the city has been
expanding three ways over the last few decades.
However, development on the northern side is
subdued as compared to West and South
Chennai mainly due to the presence of various
industrial pockets and port related activities here.
Over the last few years, the focus of developers
has been shifting from Central Chennai to the
peripheral areas of South and West Chennai due
to greater availability of jobs here.
Central North West South
CONSTRUCTION UNITS
65%
23%
5%
7%
As of Q3 2012, 25% of
the total units remain
unsold
INVESTMENT
advisory REPORT
33,938
units were absorbed
during 2010 and 2011
65%
of the under
construction units are
located in South Chennai
KIII'11IIKlVIK'
lnfraslruclurcDcvccpmcnl
Service Sector
lTScclcr
Aulc&AulcAncarcs
Rail Network
ChcnnaMclrcCcrrdcrl&ll
McncraCcrrdcrl,ll&lll
Oulcrkngkcad
Road Network
l1/l1I''IL1LKLL^'1l1I1I'
11%LI1II1L1ILIIlLI
'ILIl^LII^^l
CONNECTIVITY DESCRIPTION
Chennai-Kolkata
Anna Salai
Old Mahabalipuram
Road (OMR)
Chennai-Bangalore
East Coast Road
SlarlsalasnrdgclKcllur CcnncclsChcnnaPcrlwlhIcrlhChcnna
Highway (NH 5)
SlarlsalFcrlSl.Gccrgclcwardslhc Prcvdcscasyacccssfrcmlhcclyccnlrclc
GST Road (NH 45) sculhwcslvaarpcrllMahndra suburbsnlhcsculhsuchasTambaram,
WcrdCly Vandaur,MaramaaIagarand
Sngapcrumakc
SlarlsalMadhyaKaashjunclcn AsckncwnaslhclTccrrdcr,ccnncclslhc
lcwardslhcsculhvaShcnganaur clyccnlrcwlhsculhcrnsuburbssuchas
lMahabapuram Pcrungud,SruscrandKcambakkam
SlarlsfrcmChcnnaCcnlraSlalcn Ccnncclswcslcrnmarkclssuchas
Highway (NH 4) vaSrpcrumbudurlangacrc andSrpcrumbudurwlhlhcclyccnlrc
ShcnganaurlMahabapuram kunnngparaclclhcOMk,ccnncclslhc
lMahabapuram ccaslaccalcnscfSculhChcnna
MRTS
South West
Line
North Line
West Line
Chcnnacach-Tambaram- kunnngparaclcGSTrcad,ccnncclscly
Chcngapcl ccnlrcwlhMahndraWcrdClyvaTambaram
andMaramaaIagar
Chcnnacach-Thruvanmyur PrcvdcscasyccnncclvlyfrcmVcachcryva
-Vcachcry TdcParkandTaramanlcclyccnlrc
ChcnnaCcnlra-Enncrc- CcnncclslhcncrlhcrnparlcfChcnnawlh
Gummdpccnd CcnlraChcnnavaTcndarpcl
ChcnnaCcnlra-Avad-Truvaur CcnncclsIcrlhWcslcrnmarkclscfAmbalur
andAvadwlhclyccnlrc
l^VI'1Î^1
IVl'LKYKIILK1
LIKKI^1IYLII^^ll'
LL^ÎL1II1IKLILI
^JLKK1IKlIKLI'Î
4
'IBIKB^KlIÎ1\LKK'
Most of the upcoming
infrastructure
projects will be
operational before
2017
CONNECTIVITY DESCRIPTION CURRENT EXPECTED
STATUS COMPLETION
Outer Ring
Road I
Outer Ring
Road II
Vandalur - The six-lane highway is expected to Under 2012-13
Nazarathpet - decongest the city road by connecting construction
Nemilichery the GST Road (NH 45) with Chennai-
Bangalore Highway (NH 4) and NH 205
Nemilichery - Will connect NH 205 with the Chennai- Land 2016-17
Nallur - Minjur Kolkata Highway (NH 5) and TPP road Acquisition
at Minjur through a six-lane highway
UPCOMING SUBURBAN RAIL NETWORK
STATUS COMPLETION
Chennai
Monorail
Corridor I
Chennai
Monorail
Corridor II
Chennai
Monorail
Corridor III
Chennai Metro
Corridor I
Washermenpet - Will enhance connectivity between Under 2015
Chennai Central Chennai Airport and central Chennai via construction
Station - Guindy
Chennai Airport
Chennai Metro Chennai Central w cRnnccl lhc hcavy lrac rRulc Under 2015
Corridor II Station - between city centre and St. Thomas Construction
Annanagar - Mount
Vadapalani -
St. Thomas Mount
Vandalur - Better connectivity for Vandalur and Bidding 2016-17
Velachery Tambaram with city centre via Valechery stage
Poonamallee - Will connect West Chennai via Porur Bidding 2016-17
Kathipara stage
Poonamallee - Enhance connectivity of Poonamallee as Bidding 2016-17
Vadapalani Vadapalani is also a node on Metro stage
Corridor II
Employment Indicators in Chennai
Being a port city, Chennai has historically been at
an advantage compared to other metro cities of
South India like Bangalore and Hyderabad. Export
oriented manufacturing industries have always
been attracted to Chennai due to the presence of
two major ports with excellent road and rail
connectivity from all the three sides of India. Auto
& Auto Ancillary sector is one of the largest
employers among the various manufacturing
INVESTMENT
advisory REPORT
industries present in the periphery of Chennai.
Apart from the manufacturing plants of Hyundai,
Renault-Nissan, Daimler and Eicher Motors, there
are numerous Auto Ancillary units spread across
the industrial corridor of Sriperumbudur-
Oragadam. Additionally, manufacturing plants of
Ford, BMW and Sundram Fasteners on GST road
have also created large scale employment in the
Auto sector.
IT/ITeS and
Automobile
sectors to be the driving
factors for Chennais
growth
OFFICE SPACE STOCK
Source: KnghlFrankkcscarch
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South
Chennai, which
will host three-fourth of
the total RLI V1ock, is
expected to witness
maximum growth in the
residential market over
the next 5 years
Although the manufacturing sector is expected to
grow strongly, going forward, this zone will not be
abc lR rcap lhc bcncl RI argc scac
employment in the IT/ITeS sector. Higher
purchasing power and preference to reside in
close proximity of their work area, makes IT/ITeS
employees a dominant force in driving the
residential market of any region.
South Chennai, which will host three-fourth of the
lRla Rcc slRcN n Chcnna aRng wlh lhc argc
number of manufacturing units located on the
The focus of Tamil Nadu government over the last
decade in promoting OMR as an IT/ITeS
destination along with the setting up of Mahindra
World City on GST road has created immense
employment opportunities in South Chennai.
Additionally, the proximity to Chennai airport,
presence of arterial roads and availability of vast
vacant land parcels has enabled this zone to
rapidly grow into an emerging residential market.
Since 2000, a large number of IT/ITeS companies
have set up their operations in the numerous IT
Parks and IT SEZs on OMR and GST road. The
growth in IT/ITeS based employment, gradually
sowed the seeds of a bustling residential market
in this zone. Preference of employees in staying
cRsc lR lhcr wRrN pacc and aRrdabc prcng as
compared to Central Chennai sustained the
development of a healthy market in this zone.
Growth of the residential market in South Chennai
has been primarily along the three arterial roads
of OMR, GST road and ECR. However, in the last
few years a lot of development has taken place
within the destinations located between OMR and
GST road. The advantage of being centrally
SOUTH CHENNAI
2007 2008 2009 2010
70,000
60,000
50,000
40,000
30,000
20,000
10,000
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF SOUTH CHENNAI
2011
2012*
9%
6%
11%
13%
22%
26%
located with easy access to both these roads has
led to many home buyers preferring these
destinations.
South Chennai has witnessed the launch of
68,914 residential units since 2007. Of these, a
total of 50,666 units of this have been absorbed
as of Q3 2012, with 26% remaining unsold. There
has been a steady rise in the percentage of
unsold units over the years, as the pace of
absorption has not been able to keep up with the
pace of new launches. A total of 29,245 units
were launched in South Chennai during 2010 and
2011, of which only 19,550 units were absorbed.
Taking a cue from the market, developers have
become cautious before launching any new
project and only 61 new projects have been
launched in 2012 as compared to 147 during
the previous year. Although the number of new
launches has reduced drastically, the excess
supply from the previous years is impacting the
unsold units percentage. Additionally,
absRrplRn durng lhc rsl nnc mRnlhs RI 2012
has been abysmally low.
INVESTMENT
advisory REPORT
GST road, is expected to witness maximum
grRwlh n lhc rcsdcnla marNcl Rvcr lhc ncxl vc
ycars. hcavy lrac cRngcslRns and abscncc RI
any mass rapid transport system on the IT
Corridor of OMR has resulted in many employees
prcIcrrng lR slay cRsc lR lhcr Rccs n lhs
area. This phenomenon is expected to continue
for the next few years as no new mass rapid
transport system is planned on the OMR. Hence,
growth in the IT/ITeS sector of the city will directly
bcncl lhc rcsdcnla marNcl RI SRulh Chcnna.
68,914 residential
units have been launched
in South Chennai since
2007. Of these, a total of
50,666
units have been absorbed
as of Q3 2012
St. Thomas
Mount
Chennai
Airport
Kunrathur
Paranur
Chengalpattu
Anna
International
Airport
B A Y
O F
B E N G A L
C
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a
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B
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p
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NH
45
NH
45
NH
45
NH
4
NH
45
T
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TAMBARAM
GUDUVANCHERI
VELACHERY
PALLAVARAM
CHROMEPET
THIRUPORUR
SIRUSERI
SRIPERUMBUDUR
CHENGALPATTU
SITHALAPAKKAM
MEDAVAKKAM
ADYAR
VANDALUR
PALLIKARNAI
Proposed Monorail
Major Roads
U/C Metro Corridor I
U/C Metro Corridor II
Airport
Railway Line
Benchmark location
Top destination
Employment Hubs
INVESTMENT
advisory REPORT
SOUTH CHENNAI MAP
Existing
Infrastructure
up their campuses along this route. ELCOT SEZ
and SlPC2T lT ParN arc lhc lwR andmarN Rcc
space developments in these segments.
However, lack of social infrastructure and
absence of organized retail are the major
drawbacks of these segments and hence
preference among home buyers to reside here is
low. Some of the major residential destinations
located here are Thuraipakkam, Sholinganallur,
Navallur, Egattur and Padur.
GST road, also known as NH-45, is one of the
busiest National Highways in Southern India and
starts from Kathipara junction in Guindy till Theni.
It is a four-lane highway with various suburban
destinations and the Chennai airport located
along the road. The setting up of Ford Indias
manufacturing plant at Maraimalai Nagar was one
RI lhc rsl majRr dcvcRpmcnls Rn lhs rRad.
However, commencement of the 1,550 acres
Mahindra World City in 2005 at Chengelpet led to
a dramatic change in the development of this
corridor with huge employment opportunities
being created across the IT/ITeS, Auto & Auto
Ancillary and Apparel sectors. In addition to this,
setting up of Shrirams The Gateway and Estancia
IT SEZ have further facilitated growth of the
IT/ITeS sector on this road.
Residential development on the GST road has
been centred along the hubs of Chromepet,
Tambaram, Vandalur, Maraimalai Nagar and
Singaperumalkoil. The seamless connectivity
throughout the road leaves little variation in
terms of price among the various residential
destinations located on GST road, as the time
taken to travel between them is very marginal.
ECR, also known as the Entertainment Corridor, is
a two lane highway built along the coast of the
Bay of Bengal connecting Chennai with
Pondicherry. The road starts at Thiruvanmiyur in
South Chennai and runs parallel to OMR and
nay mcrgcs wlh 20k al 0ahabapuram. Sncc
the last ten years this road has witnessed
considerable real estate development with
numerous theme parks, boat houses, beaches,
5-star hotels and pubs dotted along the stretch.
wlh lhc abscncc RI any sgncanl Rcc spacc,
residential development along this road has been
restricted to second homes and villas.
GRAND SOUTHERN TRUNK (GST)
ROAD
EAST COAST ROAD (ECR)
OLD MAHABALIPURAM ROAD
(OMR)
OMR, also known as the IT Highway or Rajiv
Gandhi Salai, starts from Madhya Kailash
Junction near Adyar till Mahabalipuram. It is a six-
lane highway being developed in two phases,
with Phase I of 20.1 km. from Madhya Kailash
Junction to Siruseri already under operation since
2008. The work on Phase II that will connect
Siruseri to Mahabalipuram is still underway.
Phase II is expected to be ready in another 3-4
years. Phase I of OMR is further divided into three
segments based on toll plazas. The road from
Kailash Junction to Perungudi toll plaza is known
as lhc rsl scgmcnl.
Proximity to the city centre, presence of an
cslabshcd Rcc marNcl and acccss lR rcla
malls has enabled rapid development of various
rcsdcnla marNcls Rcalcd aRng lhc rsl
segment. Some of the major IT/ITeS projects such
as TIDEL Park, Ramanujan IT Park, Ascendas
International Tech Park, RMZ Millenia Business
Park and SP Infocity are located in this segment.
The road from Perungudi toll plaza till Egattur toll
plaza is known as the second segment and the
road beyond Egattur as third segment. These two
segments of the OMR have also witnessed
tremendous residential development over the last
few years, as many IT/ITeS companies have set
INVESTMENT
advisory REPORT
Lack of social
infrastructure and
absence of organized
retail have restricted the
growth of residential
market on OMR
beyond 1II KV1 toll
plaza
Commencement of the 1,550
acres Mahindra
World City
led to a dramatic change
in the development of the
GST Road with huge
employment opportunities
being created
TREND IN SOUTH CHENNAI
2007 2008 2012* 2009 2010 2011
9,185
11,889
10,355
12,505
16,740
8,240
CHENNAI BEACH- VELACHERY
MASS RAPID TRANSIT SYSTEM
(MRTS)
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arclhclT/lTcSscclcrandAulc&AulcAncary
nduslry.Sncc2008,mcrclhan30mnsq.flcf
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cffccspaccscxpcclcdlcbcccmccpcralcnan
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59.8mn.sq.fl.bylhccndcf2017.Currcnly28%
cflhclclacffccspaccnSculhChcnnasyng
vacanlandscxpcclcdlcncrcasclc35%by
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ncrcmcnlacffccspacclcbcabscrbcdcvcrlhc
ncxlfvcycars,whchwhcpnbrngngdcwn
lhcvacancycvclc20%bylhccndcf2017.
EMPLOYMENT HUBS IN SOUTH CHENNAI
OMR
lT/lTcS TlDELPark TCS,Ccgnzanl,QuSccnlTcchnccgcs
lT/lTcS kamanujanlTPark HP,lnfcsys,Mndlrcc
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lT/lTcS ELCOTSEZ Wprc,Ccgnzanl,HCL
lT/lTcS SlPCOTlTPark TCS,Ccgnzanl,Paln
GST ROAD
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lT/lTcS EslancalTSEZ MavcrcSyslcms
lT/lTcS MahndraWcrdCly lnfcsys,Capgcmn,MndTrcc
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spaccsbcundlccrcalcaddlcnacmpcymcnl
nlhczcnc.SncclhcprcfcrcnccamcnglT/lTcS
cmpcyccsfcrrcsdngccscrlclhcrwcrkpacc
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SOUTH CHENNAI OFFICE
SPACE DYNAMICS
* Figures in mn. sq.ft.
lncrcmcnlacmpcymcnlnlhclT/lTcSscclcrand
cnhanccdccnncclvlyduclclhcmcncraw
drvclhcrcsdcnlamarkclcfSculhChcnnan
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majcrlycflhcdcslnalcnsccalcdnlhszcnc,
lhcrcwbcccrlandcslnalcnslhalw
culpcrfcrmclhcrs.clwccnlhclwcarlcra
rcads-OMkandGSTrcad,wccxpcclOMklc
wlncsshghcrprccgrcwlhduclclhc
ccnccnlralcncfcffccspacchcrc.Oulcflhc
lclacffccspaccslcckcf59.8mn.sq.fl.whchs
cxpcclcdlcbccpcralcnanSculhChcnnaby
2017,82%wbcccalcdcnlhcOMk.
AcnglhcOMk,lhcprcfcrcnccfcrccalcns
ccscrlclhcclyccnlrcshghduclclhcackcf
sccanfraslruclurcandcrganzcdrclanlhc
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unprcccdcnlcddcvccpmcnlcfdcslnalcnssuch
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lhccmpcymcnlhubscfSculhChcnna.
Addlcnay,lhcVandaur-VcachcryMcncra
prcjcclwfurlhcrcnhancclhcccnncclvlycf
lhcscdcslnalcnswlhlhcclyccnlrcnlhc
ncrlhandGSTrcadnlhcsculhaslpasscs
lhrcughcachcflhcscccalcns.Thcsc
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anddslanccfrcmChcnnaarpcrlwbclhc
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abcvcfaclcrsduclclhcrfavcrabcccalcn.
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PALLIKARNAI AND MEDAVAKKAM
* By road
Dslancc Travclmc
6-12
km
10-20
mins
15-20
km
23-30
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fvcycars,lhsdsccunlwnarrcwdcwnduclc
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PRICE FORECAST
* Figures in `/sq.ft.
2012
Pallikarnai Adyar
`12,000
2017E
`8,100
`15,858
`4,200
Pallikarnai has witnessed
the launch of 1,684
units since 2007, of which
1,382 units have been
absorbed till Q3 2012
DESTINATION
PALLIKARNAI
Pallikarnai, which is located a few km. south of
Velachery, is well connected by road to all the
major employment hubs in south Chennai.
However, absence of rail network has restricted
the growth in prices of this destination. Going
forward, this is about to change as the upcoming
Vandalur-Velachery Monorail project will
sgncanly cnhancc lhc ra cRnncclvly RI
Pallikarnai with the GST Road and the city centre.
From 2007 to 2010, Pallikarnai witnessed a
healthy absorption trend. However, the sudden
surge in new launches during 2011 along with a
prcc rsc RI 10% cd lR a sgncanl ncrcasc n
unsold units percentage during the year.
Currently, the percentage of unsold units stands
at 18%.
The dynamics of Pallikarnai are expected to
change dramatically in the coming years due to
the upcoming Vandalur Velachery Monorail
network. This will narrow down the current price
dcrcnla bclwccn PaNarna and Adyar.
Currently, prices in Pallikarnai are 65% lower than
Adyar, which is the most established market in
SRulh Chcnna. ln lhc ncxl vc ycars, wc cxpccl
this discount rate to narrow down to 49% due to
various reasons discussed before. This will result
in prices increasing from `4,200/sq.ft to
`8,100/sq.ft by 2017.
2007 2008 2009 2010
2,000
1,600
1,200
800
400
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF PALLIKARNAI
2011
2012*
2%
4%
16%
TREND IN PALLIKARNAI
2007 2008 2012* 2009 2010 2011
228
94
900
181
52
230
INVESTMENT
advisory REPORT
Currently, the percentage
of unsold units stands at
18%
Pallikarnai to increase by
93% in the next 5 years
2% 2%
18%
PRICE MOVEMENT
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
65%
49%
Pallikarnai Adyar Discount Margin
` 3.3 mn. is the minimum
ticket size investment for
a 2 BHK apartment in
Pallikarnai
Investment Options in Pallikarnai
1325 - 2136 5.6 - 8.9
790 - 1766 3.3 - 7.4
3BHK
2BHK
2.4 - 2.6 1BHK
571 - 623
INVESTMENT
advisory REPORT
Before
2008
2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E
Appartment Sizes start
from 571 sq.ft. for a 1
BHK in Pallikarnai
SELECT PROJECTS
Units Date Date
Mapleton Appaswamy 473 Jan-11 Apr-13
Akash Rajkham 87 Apr-12 Dec-13
Ganga
PRICE FORECAST
2012
Medavakkam Adyar
`12,000
2017E
`7,700
`15,858
`3,800
Medavakkam has witnessed
the launch of 5,707
units since 2007, of which
4,147 units have been
absorbed till Q3 2012
DESTINATION
MEDAVAKKAM
Medavakkam, which is around 6 km. south of
Velachery, is another emerging residential hub
with excellent road connectivity with
Sholinganallur on the OMR and Tambaram on GST
road. Sharing similar characteristics with
Pallikarnai, the prices in this destination have
moved in the same range as Pallikarnai over the
asl vc ycars.
Medavakkam witnessed a large number of new
launches during 2010 and as it lacked the
capacity to absorb such a huge number, there
was a sudden jump in unsold inventory. During
2011 and 2012, the percentage of unsold
inventory increased further despite lesser number
of new launches due to the oversupply from the
previous year. As of Q3 2012, the unsold
inventory in Medavakkam stands at 27%.
2vcr lhc ncxl vc ycars, wc cxpccl 0cdavaNNam
to follow Pallikarnai in terms of price as the
bcncl RI vandaur - vcachcry 0RnRra nclwRrN
will accrue equally to this destination too. The
prcc dcrcnla wlh Adyar w smary narrRw
down from 68% in 2012 to 51% by 2017, resulting
in a price rise from `3,800/sq.ft to `7,700/sq.ft.
2007 2008 2009 2010
6,000
4,500
3,000
1,500
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF MEDAVAKKAM
2011
2012*
3% 3%
26%
27%
TREND IN MEDAVAKKAM
2007 2008 2012* 2009 2010 2011
3%
22%
870
621
315
2,411
1,256
233
INVESTMENT
advisory REPORT
Medavakkam to increase by
103% from 2012 to 2017
4BHK
3BHK
2BHK
1BHK
PRICE MOVEMENT
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
68%
51%
Medavakkam Adyar Discount Margin
` 3.4 mn. and
` 4.6 mn. are the
minimum ticket Sizes for
investment in Medavakkam
for a 2 BHK and 3 BHK
respectively
Investment Options in Medavakkam
SELECT PROJECTS
Units Date Date
Purva Purvankara 756 Mar-11 Mar-14
Windermere
Spring Navin 280 Oct-10 Dec-14
Field Housing
Majestica Vasavi 260 Jul-10 Dec-14
Housing
Indiabulls Indiabulls 900 Sep-10 May-14
Greens
560 - 715
902 - 1254
1220 - 2161
2450 - 2710 9.3 - 10.3
4.6 - 8.2
3.4 - 4.8
2.1 - 2.7
INVESTMENT
advisory REPORT
Before
2008
2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E
Over the next VI years,
we expect
Medavakkam
to follow Pallikarnai in
terms of price
INVESTMENT
advisory REPORT
47.38 3.1% 37.10 2.5%
NATIONAL CAPITAL REGION POPULATION
27.36 3.2%
1991 2001 2011
The National Capital Region (NCR) is spread over 33,578 sq. km. making it
one of the largest urban agglomerations in the world. It was initially
cRnccvcd undcr lhc rsl 0aslcr Pan RI 0ch n 1962 and cRnccpluazcd
with the foremost objective of creating a metropolitan area around Delhi,
so as to ease out the pressure on the national capital. The NCR
encompasses of the entire National Capital Territory of Delhi as well as
select urban areas from its neighbouring states of Haryana, Rajasthan
and Uttar Pradesh (UP). By virtue of this development, Gurgaon, Noida
and Greater Noida emerged as the major sub-regions of the NCR.
DELHI-NCR
DELHI-NCR MAP
INVESTMENT
advisory REPORT
A National Capital Region Planning Board (NCRPB) was formed under the NCR Planning
Board Act 1985, by the Ministry of Urban Development. The central focus of the board
was to coordinate the development of the NCR with the State Governments of Haryana,
Uttar Pradesh and Rajasthan. Led by Gurgaon and Noida, the NCR has witnessed
substantial growth as a centre for e-commerce associated businesses including
RulsRurcng and R-shRrng aclvlcs. 0ajRr nduslrcs Nc lT]lTcS, AulRmRbc and
Pharmaceuticals contribute the most towards the economy of this region.
Proximity to the national capital and enhanced connectivity due to the metro line
across the NCR, has positioned it as the most preferred destination for corporate and
01Cs lR scl up lhcr Rccs. Thc prmc Rncs ncudc 0crRsRIl, l0, AmdRcs, 1Rrlc,
0c, 1RNa, SAP, Acccnlurc, 0RlRrRa and LrcssRn. hcncc, l s bccvcd lhal lhc 1Ck s
Rn lhc brnN RI cmcrgng as lhc 'NnRwcdgc' hub RI lnda. ARng lhc grRwlh RI lhc
service industry the region witnessed huge immigration. As per Census 2011, the
population of the NCR witnessed a 2.5% annual rise during the decade 2001-2011, the
total population now stands at 47.38 mn.
STATE/UT REGIONS AREA (SQ. KM.)
Jhajjhar, Panipat
10,853
Bulandshahr
and Baghpat
7,829
Delhi Delhi - National Capital Territory 1,483
Haryana Fardabad, 6urgaRn, 0cwal, kRhlaN,
Sonepat, Rewari, 13,413
and Palwal
UP Meerut, Ghaziabad, Gautam
Budha Nagar,
Rajasthan Alwar
Total 33,578
Major Roads
Metro Corridor I
Metro Corridor II
South Zone
West Zone
Central Zone
Lasl ZRnc
North Zone
Price Contours (`] sq.Il)
5000 12000 35000
6kLATLk 12l0A
12l0A
FARIDABAD
GHAZIABAD
Major Roads
Railway Line
Lxslng 0clrR
Under Construction Metro
Delhi
Gurgaon
Faridabad
Noida
Greater Noida
Ghaziabad
Price Contours (`] sq.Il)
0LLhl
6uk6A21
National Capital Region
(NCR) is spread over
33,578 sq.km.
Market
Overview
DESTINATIONS
Noida
Delhi Rohini, Ashok Vihar, Civil Lines,
Greater Kailash, South Extension,
Hauz Khas, Anand Vihar, Pashchim
Vihar, Janakpuri, Raja Garden,
Tagore Garden, Rajouri Garden
Gurgaon Dharuhera, Golf Course Road,
Sohna Road, MG Road, NH-8,
Dwarka Expressway, Manesar
Noida/Greater Noida, Noida Extension, Noida-
Greater Noida Expressway
Faridabad Neharpar, Dayal Bagh Colony,
Sainik Colony
Ghaziabad Crossing Republik, Indraprastha
Yojna, Raj Nagar, Raj Nagar
Extension
Alwar Neemrana, Bhiwadi, Behror
Highway, Station Road
The NCR is divided into six broad zones: Delhi,
Gurgaon, Noida/ Greater Noida, Faridabad,
Ghaziabad and Alwar.
NATIONAL CAPITAL TERRITORY
DELHI
0ch, lhc capla RI lnda s lhc Ilh mRsl
populated city in the world. It is situated in
central north India and stands on the west bank
of Yamuna River. It is spread over an area of 1,483
sq. km., 216 m. above sea level and has a
population of around 16.75 mn. Delhi is the
political hub of India comprising headquarters of
all the political parties as well as important
admnslralvc Rccs. ll has cvRvcd IrRm bcng a
city of royal power to the seat of bureaucratic
power.
It has also transpired as one of the central hubs
of North India's trading and service industry.
Delhi has emerged as the major commercial
centre for small, medium and large scale
industries. The information technology (IT),
electronic, textile and fashion industry are also
the major contributors to Delhi's economy.
Based on its geographical locations the city is
divided into North Delhi, East Delhi, West Delhi
and South Delhi.
North Delhi houses numerous small scale
industries and has emerged as one of the major
markets of small industries. Low-rise
condominiums and narrow streets full of chaos
are the major characteristic of North Delhi. This
refrains major white-collared executives from
vng hcrc. ll RRNs cnlrcy dcrcnl IrRm lhc
more modern New Delhi and south Delhi areas.
Chawri Bazaar, Chandini Chowk, Mori Gate,
Kashmere Gate, Sadar Bazaar and Tis Hazaari are
some of the major micro-markets of Old Delhi.
East Delhi is largely inhabited by the middle-
income working class population. The residential
real estate market comprises the independent
houses and DDA apartments. The 2010 Common
Wealth Games held in East Delhi completely
changed its landscape and gave the necessary
growth impetus to this region. Delhi Metro has
enhanced the connectivity of East Delhi with
major destinations like Delhi City Centre and
Noida. Some of the major micro-markets of East
Delhi are Akshardham, Pushpanjali Enclave,
Vivek Vihar, Patparganj, Lakshmi Nagar, Mayur
Vihar, and Preet Vihar.
INVESTMENT
advisory REPORT
ZONE-WISE SPILT UP OF
UNDER CONSTRUCTION UNITS
Delhi
Gurgaon
Noida
Gt. Noida
Faridabad
Ghaziabad
23.6%
0.8%
2.0%
33.7%
18.8%
21.2%
Population of the NCR
increased by 20 mn. in
THE last 2 decades
55%of the residential
under-construction units
in Noida and Greater Noida
West Delhi is primarily a residential hub with a
cosmopolitan population. Sound infrastructure
and a well-developed organized retail market
Rcrcd lhc ncccssary bRRsl lR lhs rcgRn.
Additionally, West Delhi region gained
prominence due to its proximity to the
commercial hubs of Janakpuri, Rajaouri Gardens
and Punjabi Bagh. Over the years, it has emerged
as the most sought after destination thereby
making it one of the major posh localities of
Delhi. Patel Nagar, Punjabi Bagh, Pitampura,
Rohini, Dwarka, Janakpuri and Rajouri Garden are
some of the major micro-markets of this region.
South Delhi s cRnsdcrcd lR bc lhc mRsl aucnl
micro-market of Delhi. The residential real estate
comprises independent houses and bungalow
slyc dcvcRpmcnls. 0ajRr admnslralvc Rccs
including embassies and consulates are located
here. By virtue of this, South Delhi has become
the most sought after destination among the
hgh-prRc burcaucrals and lhc lRp cRrpRralc
executives. High residential demand and dearth
of new supply has propelled the residential prices
in this part of Delhi.
Its proximity to the international airport,
educational institutions and to the city centre has
made this region the most preferred destination.
Moreover, proximity to the commercial hub of
Nehru Place and Lajpat Nagar coupled with the
presence of organized retail further augmented
the demand for this region. Some of the major
micro-markets are Greater Kailash, Chanakyapuri,
Lajpat Nagar, Nehru Place, Defence Colony,
Vasant Kunj, Hauz Khas and Friends Colony.
GURGAON
Gurgaon was developed to ease out the
burgeoning growth of New Delhi. It is one of the
four major satellite cities of the NCR, located 30
518,200 residential
units launched in DELHI NCR
since 2007
INVESTMENT
advisory REPORT
km. south of New Delhi. The evolution of Gurgaon
coincides with the 1990s liberalization of the
Indian economy. Contemporary Gurgaon is dotted
with high-rise buildings and spectacular malls.
Over the years Gurgaon earned the sobriquets of
the 'Millennium City' and the 'Mall City' of India.
6urgaRn s nRl Rny an nduslra and nanca
centre of Haryana but also one of the most
prRnRunccd lT]lTcS RulsRurcng and R-shRrng
hubs in the world. Further, it is also a major hub
for the automobile, telecom and garment
manufacturing industries. Major factors like
availability of huge land parcels, quality
commercial properties, proximity to the
international airport, favourable government
policies and access to the talent pool lured many
corporates to Gurgaon.
Some of the prime residential and commercial
micro-markets of Gurgaon include Mehrauli-
Gurgaon Road (MG Road), Golf Course Road, Golf
Course Extension Road, Sohna Road and NH-8.
These locations are well-connected with New
Delhi through the six-lane NH-8 and MG Road.
The NH-8 also provides quick and easy access to
the New Delhi International Airport. Further, a 14
km. Southern Peripheral Road (SPR) covers all the
major developments in this part of Gurgaon and
connects MG Road and Golf Course Extension
Road with NH-8. The connectivity between the
adjoining markets of Delhi and Noida is further
enhanced by the existing metro-rail. Further, a
new residential belt has emerged along the
upcoming 8 lane 18 km. Northern Peripheral Road
(NPR) or Dwarka Expressway. This expressway
would act as an alternative route for the existing
Delhi-Gurgaon Expressway. A 135 km. Kundli-
Manesar-Palwal (KMP) Expressway is under
construction, once completed this expressway
will provide connectivity with the major industrial
hubs RI haryana. Ths has gvcn a p lR
commercialization in Manesar.
2008 2009 2010
9%
600,000
500,000
400,000
300,000
200,000
100,000
N
o
.

o
f

U
n
i
t
s
Supply Demand % of Unsold Units (RHS)
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF NCR
2011
19.2%
2012*
23.8%
2007
9.4%
7.8%
14.1%
Golf Course Road is the most sought after
destination owing to its proximity to South Delhi
(a posh locality) and hence boasts of the highest
residential property prices in Gurgaon. MG Road
is a self-sustaining micro-market with the
presence of well-developed organised retail
market, superior residential development and
qualy cRmmcrca Rccs. 0LF Cybcrcly, udyRg
vhar, Sgnalurc TRwcrs, 0LF CRrpRralc ParN,
Spazc lT ParN, valNa usncss ParN and unlcch
Infospace are some of the major commercial
buildings. Golf Course Extension Road is catching
up with the Golf Course Road with its quality
residential development.
NOIDA
1Rda cly s Rcalcd n lhc 6aulam uddha 1agar
dslrcl RI ullar Pradcsh. 6cRgraphcay l s
situated to the south-east of Delhi and spread
over 20,316 hectares. New Okhla Industrial
Development Authority is the nodal agency for
the overall development of this region. Noida has
emerged as one of the major satellite cities of the
NCR after Gurgaon. Noida is well connected with
0ch, Agra, Fardabad and 6hazabad. A 165 Nm.
Yamuna Expressway provides connectivity with
Agra via Mathura; an eight-lane Delhi-Noida-Delhi
(010) FyRvcr cRnnccls 1Rda and 0ch and a
Fardabad-1Rda-6hazabad (F16) hghway
prRvdcs cRnncclvly wlh Fardabad and
Ghaziabad. Noida has the Delhi Metro facility till
the City Centre from Delhi and also up to Vaishali.
The metro will further expand in Noida and also
cover Noida Extension and Greater Noida.
Over the years, Noida has developed into an
IT/ITeS hub. A number of IT/ITeS companies like
hCL, 0c, AdRbc Syslcms, ATC Labs, lnlcrra, CSC,
Fscrv, l0 and A21 hcwll havc scl up lhcr basc
in the city. It is now swiftly emerging into a hub
for automobile ancillary units with multinational
cRmpancs Nc hRnda-SlLL, LscRrls and 0acwRR
scllng up Rccs hcrc. 1Rda-6rcalcr 1Rda
Lxprcssway and ScclRr 58, 62, 63 and 6/ havc
emerged as the major commercial hubs in Noida.
GREATER NOIDA
Greater Noida is a new suburb located 20 km from
1Rda n 6aulam uddha 1agar dslrcl RI ullar
Pradcsh. Sprcad Rvcr 20,000 acrcs, l s slualcd
abRul /0 Nm sRulh-casl RI 1cw 0ch and IRrms a
part of the NCR. Greater Noida Industrial
Development Authority (GNIDA) is the nodal
agency for the overall development of this region.
Physca nIraslruclurc RI 6rcalcr 1Rda has bccn
crafted very meticulously by the GNIDA. Wide
roads along with service roads for all the major
arterial roads have been built. The Noida-Greater
395,650 residential
units absorbed in Delhi NCR
since 2007
INVESTMENT
advisory REPORT
Noida Expressway and the Yamuna Expressway
provides connectivity between Noida, Greater
Noida and Agra. Greater Noida also boasts of
lnda's rsl '6rand Prx' whch marNcd l prcscncc
on the International Motor Racing Circuit.
Moreover it is also emerging as a planned
industrial region and an educational hub.
FARIDABAD
Fardabad s lhc sRulh-caslcrn dslrcl RI haryana
and lhc argcsl cly RI lhc slalc. cng an
nduslra hub l has Rvcr 25,000 sma-scac
nduslrcs. Thc Fardabad-aabgarh cRmpcx
cmpRys Rvcr 500,000 pcRpc n apprRxmalcy
15,000 manuIaclurng unls. Thc rcgRn has
gained prominence due to its proximity to the
National Capital Territory (NCT) of Delhi, Gurgaon
and 6rcalcr 1Rda. FRr lhc casc RI admnslralRn,
Fardabad dslrcl s dvdcd nlR lwR sub
dvsRns vz. Fardabad and aabgarh.
Thc cly s 25 Nm. IrRm lST, 0ch and Rny 10 Nm.
from the Ashram Crossing on Mathura Road. The
Delhi-Mathura-Agra Road (NH-2) passes through
lhc cly va Fardabad, aabgarh and Pawa.
0RrcRvcr, Fardabad s cRnncclcd wlh
Delhi through the metro rail service which
currcnly lcrmnalcs al lhc 0ch-Fardabad
bRrdcr n adarpur.
Fardabad hRuscs scvcra lndan and 01C
manufacturing companies. Motorcycles, tyres,
auto-ancillaries, refrigerators, tractors and
switch-gears are some of the major industries in
Fardabad. Larscn 8 TurbR (L8T), A, 6RRdycar,
whrpRR, Lchcr, }C, 2rcnl Fans, haral 6cars,
LaNhan ShRcs, LaIargc, amaha, havc's,
Escorts and Castrol are some of the major
cRmpancs havng lhcr basc n Fardabad.
2007 2008 2012* 2009 2010 2011
TREND IN NCR
Launchcs Source: Knghl FranN kcscarch
59,176
/6,605
78,222
171,261
111,6/9
51,288
145,395 residential
units launched in Noida
during 2007-12
Reliance Energy has
proposed a 1000 hectares
multi-product SEZ in
Ghaziabad
INVESTMENT
advisory REPORT
GHAZIABAD
Ghaziabad forming one of the major constituents
of the NCR is strategically located 20 km. to the
east of New Delhi. It is a planned industrial city
spread over 1,933 sq. km. Moreover, it also acts
as a main entrance for the state of Uttar Pradesh.
Ghaziabad Development Authority (GDA) is the
nodal agency for the overall development of the
city. The region has gained prominence due to its
proximity to the National Capital Territory (NCT) of
Delhi, Gurgaon, Noida and Meerut. The city's real
estate market witnessed high traction with an
improvement in the physical and social
infrastructure.
Two major arterial roads NH-24 and NH-58
passing through Ghaziabad, provide connectivity
with Lucknow and Badrinath respectively. To
decongest the existing highways, the GDA has
proposed the widening of the NH-24 from the
existing four lanes to six lanes. Further, metro rail
has enhanced the connectivity with other regions
of the NCR. Further, the connectivity within
Ghaziabad will improve with the expansion of the
existing metro rail from Dilshad Garden to New
Bus Stand located near the Meerut Road
crossing. Major residential micro-markets like
Vaishali, Indirapuram, Vasundhara and Raj Nagar
Extension have emerged along these highways.
Being an industrial hub it has over 14,000 small-
scale industries, majorly manufacturing defence
products, railway wagons, heavy chains, bicycles
and glassware. Besides many large multi-national
companies, banks, IT and telecom services have
set up their base here. Reliance Energy's
proposed 1,000 hectares multi-product SEZ,
existing manufacturing units of Coca-cola and ITC
have further augmented demand for residential
as well as commercial real estate in Ghaziabad.
ALWAR
Alwar is a district in Rajasthan (a state in India)
located to the south-west of Gurgaon. It is spread
over 8,380 sq.km. of which 262 sq.km. forms a
part of the National Capital Region (NCR).
Rajasthan State Industrial Development and
Investment Corporation Ltd. (RIICO) is the major
nodal agency for the development of Rajasthan.
RIICO has been a catalyst for the overall industrial
transformation of the state. Over the years with
progressive industrial policies by the state
government, the district is now able to boast of
various industrial hubs. Some of the major
commercial areas are Bhiwadi, Tapookara,
Khushkhera and Neemrana. These commercial
areas house sectors like cement, automobile,
glass & ceramics, mines & minerals, textiles and
bio-tech industry. Moreover, this region is one of
the nodes for the Delhi-Mumbai Industrial
Corridor (DMIC) and Dedicated Freight Corridor
(DFC).
Rajasthan government has signed an MOU with
JETRO (Japanese External Trade Organization) for
setting up units in Neemrana. This region is
equidistant from Delhi and Jaipur and is also an
important part of the DMIC. These factors have
propped up the demand for commercial as well as
residential real estate in this region.
The Bhiwadi Industrial Hub is a mere 45 km. from
the Gurgaon city centre. Proximity to the city has
augmented demand for the residential as well as
commercial real estate in Bhiwadi. It alone
houses around 2,500 small, medium and large
industries including MNC industrial units. Some
of the major companies having their set up in
Alwar are Honda Siel Car, United Breweries,
Lafarge, Jaquar, Amtek India and Shree Cement.
The landscape of the NCR market has witnessed a
sea change in the last decade mainly on account
of new master development plans. Moreover,
cRnslruclRn RI varRus yRvcrs, undcrpasscs,
expressways and Metro Rail has enhanced
connectivity with all the parts of the region. These
have also changed the way people commute,
especially due to the Metro Rail. New Delhi being
the National Capital is perennially the most
sought after destination for commercial as well as
residential real estate. Further, to support the
burgeoning growth of New Delhi, newer
destinations like Gurgaon, Noida and Greater
Noida emerged in the peripheral region. Many
companies were attracted to these newer
destinations which were meticulously planned
and had a proper blend of residential and
commercial real estate developments. The NCR
wlncsscd a hugc nux RI pcRpc many Rn
account of new jobs being created by the
companies. Besides the inclination of the people
to reside closer to their work-place gave a growth
impetus to the residential real estate demand.
Since 2007, the NCR residential real estate
segment witnessed the launch of over 500,000
units.
During 2007 and 2009, the NCR residential
market witnessed an average new launch of
60,000 units per year. The arithmetic of new
launches changed completely in the last 2-3 years
owing to numerous launches of mega townships
in new destinations like Noida and Greater Noida.
Since 2009, the average residential launch per
year has increased two-fold to 120,000 units.
Alwar is one of the nodes
for the Delhi-Mumbai
Industrial Corridor (DMIC)
and Dedicated Freight
Corridor (DFC)
INVESTMENT
advisory REPORT
Real Estate Drivers
Employment Indicators Infrastructure Development
Auto Sector
REGULATORY AND MARKET ASPECT
Rail Network
Metro Corridor
Monorail Corridor
Road Network
Other Manufacturing
Sectors
IT/ITeS Sector
Other Service Sectors
Dwarka Expressway
Service Sectors
Yamuna Expressway
Southern Periphral Road
KMP Expressway
NATURE OF LEVY DELHI GURGAON NOIDA/ GHAZIABAD
GREATER NOIDA
Stamp duty 6% for Men 7% for Men 7% for Men 8% + 2%
5% for Joint 6% for Joint 6% for Joint additional charges
4% for Women 5% for Women 5% for Women
Registration 1% of the sale deed `15,000 (for `22,000 1% of market
properties above value or `30,000
`2.5mn) whichever is less
Service Tax (on under 3.09% 3.09% 3.09% 3.09%
MARKET NORMS
Since 2009, the average
residential launch per
year has increased two-
fold to 120,000 units in
ASPECTS DELHI GURGAON NOIDA/ GHAZIABAD
GREATER NOIDA
Time line for property Any time until Any time until Any time until Any time until
registration possession possession possession possession
Re-sale before Allowed Allowed Allowed Allowed
possession
Transfer charges First transfer is `100-`150 `100-`150
payable to builder sometimes free and per sq. ft. per sq. ft.
at times it is `100-
`150 per sq. ft.
Loading 12-20% 33-45% 20-45% 25-33%
(as % of carpet)
Remarks Speculative Market Speculative Market Speculative Market Speculative
Market
delhi NCR
INVESTMENT
advisory REPORT
ROAD NETWORK LENGTH OBSERVATIONS
Delhi-Gurgaon 28 km. In January-2008, an eight-lane access controlled toll expressway along the
Expressway NH-8 was started between Gurgaon and Delhi. Starting at Dhaula Kaun in
Delhi the expressway terminates on the outskirts of Gurgaon in Manesar.
Delhi-Noida Direct 9 km. Started in May-2001, this eight-lane access controlled toll expressway
(DND) Flyway provides connectivity between Delhi and the satellite city of Noida.
Yamuna Expressway 165 km. The six-lane expressway connecting Greater Noida with Agra started in
August-2012. This access controlled toll expressway is a better alternative
lR 1h-2 whch carcr uscd lR handc a lhc Agra bRund lrac Irom the
NCR.
Noida - Greater 25 km. A six-lane highway providing connectivity between the two satellite cities
Noida Expressway of the NCR i.e. Noida and Greater Noida.
NH-1 22 km. NH-1 is over 450-km., primarily connecting Delhi with Attari in Punjab. Of
this, only 22-km. form a part of Delhi. This entire stretch is an eight-lane
highway. It starts from Singhu Border in the northern district of Delhi and
terminates at ISBT Kashmiri Gate.
NH-2 (Delhi-Mathura 12 km. NH-2 is a 1,465 km. highway providing connectivity between Delhi and
Road) West Bengal. A 12-km. stretch in Delhi forming part of the NH-2 is called the
Delhi-Mathura Road. It connects Delhi with Mathura via Ashram Chowk.
NH-10 18 km. NH-10 is a 403 km. highway providing connectivity between Delhi and
Fazilka district of Punjab. Starting from the CBD of Delhi this 18 km. stretch
of NH-10 terminates at Tikri Kalan, near the Haryana-Delhi border.
Mehrauli-Gurgaon 19 km. A 19 km. stretch along the NH-236 connects Mehrauli (South Delhi) with
Road the Gurgaon city centre.
Old Delhi- 5 km. Starting from the Samalkha Crossing in New Delhi, this 5 km. road runs
Gurgaon Road parallel to Delhi-Gurgaon Expressway (NH8) providing connectivity
between Delhi and Gurgaon.
Gurgaon-Faridabad 25 km. A 25 km. toll highway starting from Gurgaon's Mehrauli Road in
Road Sikanderpur and ending at the junction of Pali Bhakri Road in Faridabad,
has been built by widening the existing two-lane road to four lanes.
Ballabhgarh- 28 km. A two-lane 28 km. toll highway connects Faridabad and Sohna, the two
Sohna Road major cities of Haryana. It starts from Ballabhgarh and ends at Rewari -
Palwal.
Delhi-Faridabad 4.4 km. The tolled three-lane expressway on NH-2 provides connectivity between
Skyway Delhi and Faridabad.
METRO TRAIN
NETWORK
LENGTH
OBSERVATIONS
Delhi Metro Rail
190 km.
A well-connected six-lane Mass Rapid Transit System (MRTS) is laid across
the NCR.
Delhi Airport Metro
22 km.
It is a part of the Delhi Metro line starting from New Delhi Railway Station to
Express (DAME)
the Dwarka Sector 21 connecting the city centre with the Indira Gandhi
International Airport.
165 km. Yamuna Expressway
is now open to public
Completion of Gurgaon-
Faridabad Road has now
enhanced connectivity
between the two cities
EXISTING METRO RAIL NETWORK
INVESTMENT
advisory REPORT
CONNECTIVITY
Kundli-Manesar-
Palwal (KMP)
Expressway
Dwarka
Expressway
Southern
Peripheral Road
(SPR)
Faridabad-Noida-
Ghaziabad (FNG)
Expressway
LENGTH
136 km.
18 km.
14 km.
56 km.
OBSERVATIONS
An access controlled 4/6 lane expressway
connecting Kundli with Palwal via Manesar in
Haryana. It is proposed to connect important
industrial centres in Haryana, and intersects
four of India's busiest National Highways:
NH-1 near Kundli (Sonipat), NH-10 near
Bahadurgarh, NH-8 at Manesar (Gurgaon)
and NH-2 near Palwal (Faridabad)
Dwarka Expressway also called the Northern
Peripheral Road (NPR) is an eight-lane
expressway, providing the shortest
alternative between the new growth centres
of Delhi and Gurgaon. The NPR starting from
Dwarka will connect Palam Vihar and the
forthcoming SEZs in Gurgaon to join the NH-8
near Kherki Dhaula.
A 90 m. wide SPR will connect Gurgaon and
Manesar with South Delhi through the
current MG Road and the Faridabad Highway.
The alignment of SPR (starting from MG
Road) connects NH-8 about 1 km. before the
Kherki Dhaula Toll Plaza. SPR has acquired
the status of national highway and has been
allotted number 236.
Connecting Faridabad, Noida and
Ghaziabad. A stretch of 8 km. out of 16 km.,
that falls under the jurisdiction of Noida
authority is complete.
CURRENT
STATUS
Under
construction
Under
construction
Under
construction
Under
construction
EXPECTED
COMPLETION
2013-14
2014-15
2013-14
Beyond 2016
METRO TRAIN
NETWORK
Rapid Metro Rail
Gurgaon(RMRG)
Phase I
Rapid Metro Rail
Gurgaon (RMRG)
Phase II
Badarpur-
Faridabad Metro
Corridor
LENGTH
6.1 km.
12 km.
14 km.
OBSERVATIONS
This intra-city Metro line connects the
existing Sikanderpur metro station with the
NH-8. This will provide the much needed
access into areas like Cyber City, Mall of
India, as well as to the NH-8.
A 7 km. extension to the RMRG Phase I, has
been proposed. This will provide connectivity
between Sikanderpur and Sector 55-56 in
South Gurgaon.
Another 6 km. metro line has been planned
to provide connectivity upto Dwarka in the
north.
This corridor is an extension of the existing
Central Secretariat-Badarpur Metro Line. The
new corridor once completed will connect
Delhi with its satellite city of Faridabad. Nine-
stations have been planned on this corridor
extending upto YMCA Chowk in Faridabad.
CURRENT
STATUS
Under
construction
Bid invited
Under
Construction
EXPECTED
COMPLETION
2013-14
Beyond 2015
2016-17
136 km. KMP Expressway will
connect important
industrial centres in
Haryana
Once completed the
Dwarka Expressway will
enhacne the connectivity
between Delhi and
Gurgaon
Rapid Metro Rail Gurgaon -
will connect the existing
Sikanderpur Metro station
with the NH-8
UPCOMING METRO RAIL NETWORK
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NCR OFFICE SPACE DYNAMICS
Before
2008
2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
Stock
Occupied Stock
40
20
60
80
100
120
140
Zones (SEZs). Rapid industrialization witnessed
in the NCR led to a shift from agriculture in the
composition of the economy (of this region). The
economy of the NCR is now skewed towards the
manufacturing and service sector. The NCR
manufacturing sector contributes about 30% to
the total output of the region. The major
manufacturing industries that fuel the NCR
economy are automobile, auto ancillary,
electronic, textile, switch-gear and farm
equipments. The region accounts for a
substantial part of the country's production of
farm equipment (tractors) -20%, motor-cycles
50% and cars - 60%. The NCR Planning Board has
envisaged an infrastructure investment of around
USD 25 bn. by 2021, for the comprehensive
development of the region.
Constructive measures taken by the respective
state governments in the NCR propelled the
overall growth of manufacturing industries.
Haryana State Industrial & Infrastructure
Development Corporation Limited (HSIIDC), Uttar
Pradesh Industrial Development Corporation
(UPIDC) and Delhi State Industrial & Infrastructure
Development Corporation Limited (DSIIDC) have
been instituted by Haryana, UP and Delhi
government respectively, to promote
industrialization. Consequently, many industrial
centres were created in NCR, like IMT Manesar
and Udyog Vihar in Gurgaon; Okhla Industrial
Complex, Wazirpur Industrial Complex, Rohtak
Road Industrial Complex, Kirti Nagar Packing
Complex, Bawana and Narella industrial complex
in Delhi. Besides, major industries were set up in
Ghaziabad and Gautam Buddha Nagar in UP. The
Rajasthan Industrial Development and Investment
Corporation (RIICO) were successful in developing
the Japanese zone in an expanse of 1,165 acres, in
Neemrana. The major Japanese companies that
have invested in Neemrana are Honda
Motorcycles and Scooters India Ltd., Nissin
Brakes, Mitsui Prime, TPR Autoparts and Daikin
Airconditioning.
Availability of huge tracts of land coupled with
favourable government policies lured many
manufacturing companies to this region.
Renowned manufacturing companies like Maruti,
Suzuki, Hero Motors, Honda, Toyota, Honda-SIEL,
Escorts and Samsung Telecommunications have
set-up their base here.
By virtue of being the National Capital Region,
there would be no dearth of demand for the
residential real estate sector here. IT/ITeS and
BFSI are the most dominant industries, moreover,
being the business capital it is home to the
corporate headquarters of several companies.
Currcnly lhc lRla Rcc slRcN n lhc 1Ck s abRul
101.48 mn. sq.ft. of which 83 mn. sq. ft. is
occupied resulting in a vacancy level of 18%. The
cly's Rcc marNcl cRcNcd absRrplRn RI amRsl
9 mn. sq.ft. during 2011. The IT/ ITeS industry still
rcmans lhc Ncy dcmand drvcr IRr Rcc spacc n
the NCR. The current situation indicates that Gurgaon
with 57% of the total occupied space in the region
has lhc hghcsl dcnsly RI Rcc spacc, mpyng
a large proportion of employment opportunities
emanating in the NCR. We estimate that the
Rccupcd Rcc spacc n lhc rcgRn w gR up by
/7% durng 2011-17. Ths grRwlh n cccl w
drive the residential markets in the city.
INVESTMENT
advisory REPORT
160
2008
IT/ITeS Manufacturing
BFSI & Consulting Others
40%
15%
30%
15%
2LI VSaLI V1RLN L^ ^L5
IUI P^. VT.I1.
4o P^. VT.I1. RLI VSaLI
V1RLN 1o be added IIKL^L
2012-17
IT/ITeS DÎ BFSI &
LR^VIO1L^L 1RLI1IIK
aLLRI^1 for 70% of 1II
RLI VSaLI L^ 1II ^L5
Major Roads
Railway Line
Proposed Metro Rail
Noida
Greater Noida
Benchmark location
Top destination
Employment Hubs
INVESTMENT
advisory REPORT
d
a
o
r
n
o i
s
n
e t x e urse o c f l o
G
Major Roads
Existing Metro
Under Construction Metro
Under Construction Dwarka Expressway
Airport
Railway Line
Benchmark location
Top destination
Employment Hubs
d
a
o
i R d au t a P
d a o
R
i
d
u
a t
a
P
lcR ChRwN
O
l
d
G
u
r
g
a
o
n
R
o
a
d
GREATER NOIDA MAP
GURGAON MAP
119,404 residential
units launched in Gurgaon
during 2007-12
New Delhi being the national capital of the
country has always been the most preferred
destination in India. The dominance of the city in
busncss and burcaucralc Rccs has bccn lhc
major driver for real estate development. We
believe New Delhi as a destination will continue
with its dominance and be in demand
perpetually. The city is land-locked and as such
land is hardly available within the city limits.
Hence, to support the ever burgeoning growth of
the city, satellite cities like Gurgaon, Noida,
Ghaziabad, Faridabad and Greater Noida
emerged. However, we do not expect gains in all
the residential markets to be identical. We
believe residential markets of Gurgaon, Noida
and Greater Noida will grow at a higher
magnitude based on factors like employment
opportunities and infrastructure developments.
We have considered all these dynamics while
selecting the investment destinations.
As a result of our analysis, we expect Gurgaon,
Noida and Greater Noida to be the biggest
bcnccarcs n lhc ncxl 5 ycars. Thcsc zRncs arc
primarily hubs for the IT/ITeS industry and we
anticipate growth momentum to accelerate in the
ncxl vc ycars. Ths cxpcclalRn s bul Rn lhc
premise that it is a planned city and there is
visibility on the development of the infrastructure
prRjccls. kcalvcy Rwcr Rcc rcnlas, argc
Rcc spacc RplRns and wc-dcvcRpcd
residential markets are factors that make this
zRnc a prcIcrrcd pacc IRr scllng up Rccs.
Going forward, development of the Dwarka
Expressway in Gurgaon, Metro connectivity in
Noida and Greater Noida will only augment the
cause.
PREFERRED
ZONES IN
THE NCR
INVESTMENT
advisory REPORT
also one of the most pronounced IT/ITeS
RulsRurcng and R-shRrng hubs n lhc wRrd.
The major prime residential and commercial
micro-markets of Gurgaon include MG Road, Golf
Course Road, Golf Course Extension Road, Sohna
Road and NH-8. These locations are well-
connected with New Delhi through the six-lane
NH-8 and MG Road, thereby providing quick and
easy access to the New Delhi International
Airport. Moreover, a 14 km. Southern Peripheral
Road (SPR) covers all the major developments in
this part of Gurgaon and connects MG Road and
Golf Course Extension Road with NH-8.
Golf Course Road is the most sought after
destination on account of its proximity to South
Delhi and hence boasts of the highest residential
property prices in Gurgaon. MG Road is a self-
sustaining micro-market with the presence of a
well-developed orgainsed retail market, superior
residential development and quality commercial
Rccs. 0LF Cybcrcly, udyRg vhar, Sgnalurc
TRwcrs, 0LF CRrpRralc ParN, Spazc lT ParN, valNa
usncss ParN and unlcch lnIRspacc arc sRmc RI
the major commercial buildings. Golf Course
Extension Road is catching up with the Golf
Course Road with its quality residential
development.
A new residential belt has emerged along the
upcoming 18 km. Northern Peripheral Road
(1Pk) Rr 0warNa Lxprcssway. Ths 150 m. wdc
road is expected to connect Dwarka and Palam
vhar n 1cw 0ch wlh 1h-8 ncar KhcrN 0haua
in Gurgaon. This belt is predominantly a
residential area however a small proportion of it
is developed as a commercial area. Proximity to
the Dwarka Sub-city, Delhi International Airport
GURGAON
Gurgaon is a self-sustaining real estate market
comprising all the verticals of real estate viz.
residential, retail, commercial and industrial.
Major factors like availability of huge land
parcels, quality commercial properties, proximity
to the international airport, favourable tax
policies and access to the talented workforce
lured many corporates to Gurgaon. It is not only
an nduslra and nanca ccnlrc RI haryana bul
RESIDENTIAL PROJECT
LAUNCH TREND IN GURGAON
2007 2008 2012* 2009 2010 2011
8,939
19,870
23,439
2/,307
26,356
16,492
A new residential belt has
emerged along the
upcoming Dwarka
Expressway
Gurgaon witnessed
absorption of 98,713 units
during 2007-12
INVESTMENT
advisory REPORT
140,000
120,000
100,000
80,000
60,000
40,000
20,000
N
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RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF GURGAON
2007 2008 2009 2010 2011 2012*
Existing Infrastructure
DELHI-GURGAON EXPRESSWAY
Delhi Gurgaon Expressway is the most
breathtaking development in India's transport
hslRry. ll prRvdcs a Ircc-Rwng alcrnalvc lR
the congested NH-8. Since its opening in January
2008, this 8 lane 28 km. access controlled toll
expressway has enhanced the connectivity
between Delhi and the commercial hub, Gurgaon.
Starting from Dhaula Kaun in Delhi the
expressway terminates at Manesar and has 11
yRvcrs and undcrpasscs. Thc cxprcssway has
four toll plazas including the 36 lane toll plaza at
the Delhi-Haryana Border.
and proposed diplomatic enclave in Dwarka
Phase II attracted many developers to this micro-
marNcl. Thc undcr-cRnslruclRn kapd 0clrR ka
Gurgaon (RMRG) is proposed to link various
micro-markets including Mall of India and DLF
Phase II & III, thereby enhancing connectivity
wlhn 6urgaRn. Ths s cxpcclcd lR augmcnl
demand for residential real estate in these micro-
marNcls. 0cvcRpcrs Nc SRbha, PTP, lndabus,
Raheja and Mahindra Life Spaces have launched
projects in this belt.
Manesar located in the south Gurgaon region is a
majRr nduslra hub. lnduslra 0Rdc TRwn (l0T)
a Haryana government initiative, has given a
p lR cRmmcrcazalRn n 0ancsar. kcnRwncd
manufacturing companies like Maruti, Suzuki,
hcrR 0RlRrs, hRnda, TRyRla and Samsung
TcccRmmuncalRns arc arcady prcscnl n
Manesar. Moreover, Manesar has become the
most preferred destination for many leading
cRmpancs ncudng majRr lT]lTcS cRmpancs.
Ths, cRupcd wlh lhc kcancc SLZ w cad lR
huge employment generation thereby leading to
huge demand for residential real estate. Major
developers like DLF, Godrej, Anantraj and Emaar
MGF have well-perceived these developments
and strategically launched their projects in
Manesar. A 135 km. Kundli-Manesar-Palwal (KMP)
Expressway will further augment demand for the
residential real estate in Manesar.
Hence, based on the above factors we anticipate
Gurgaon market to witness good appreciation
over the next 4-5 years.
As on September-2012, Gurgaon residential market
witnessed a total launch of 119,404 units since
2007. Moreover, owing to enhanced connectivity
and infrastructure development, the zone
witnessed absorption of 98,713 units during the
same period resulting in 17.3% remaining unsold.
Over the last four years the average annual
absorption of residential units in Gurgaon was
20,700. Thc aunch mRmcnlum cRnlnucd n
2012, as the region witnessed the launch of
16,/92 unls durng lhc rsl nnc mRnlhs RI 2012
(9m 2012).
3.3%
7.7%
7.3%
8.1%
11%
17.3%
IMT is a 1,750-acre ultra
modern Integrated
Industrial Park
INVESTMENT
advisory REPORT
GURGAON-FARIDABAD ROAD
LINK
A 25 km. toll highway starting from Sector-54 of
Gurgaon and ending at the junction of Pali Bhakri
Road in Faridabad, has been built by widening
the existing two-lane road to four lanes.
toll expressway has enhanced the connectivity
between Delhi and the commercial hub, Gurgaon.
Starting from Dhaula Kaun in Delhi the
expressway terminates at Manesar and has 11
yRvcrs and undcrpasscs. Thc cxprcssway has
four toll plazas including the 36-lane toll plaza at
the Delhi-Haryana Border.
Extending further, a 13 km. Rapid Metro Rail have
been planned under RMRG Phase II, of which, a 7
km. line will provide connectivity between
Sikanderpur and Sector 55-56 in South Gurgaon
and another 6 km. rapid metro rail will connect
with Dwarka in the North.
KMP EXPRESSWAY
A 135 km. access controlled expressway
connecting Kundli with Palwal via Manesar in
Haryana is under construction. It will connect
important industrial centres of Haryana and
intersect four of India's busiest National
Highways: NH-1 near Kundli (Sonipat), NH-10 near
Bahadurgarh, NH-8 at Manesar (Gurgaon) and
1h-2 ncar Pawa (Fardabad). Thc prRjccl s
expected to be complete by 2013-14. Upcoming
Infrastructure
DWARKA EXPRESSWAY
Dwarka Expressway also called the Northern
Peripheral Road (NPR) is an eight-lane 18 km.
expressway, providing the shortest alternative
between the new growth centres of Delhi and
6urgaRn. Ths 150m. wdc rRad w slarl IrRm
Dwarka Sector-21 and end at NH-8 (Gurgaon
Lxprcssway) ncar hadram. Ths slrclch has bccn
planned as an alternative link between Delhi and
Gurgaon, thereby decongesting the Delhi-
6urgaRn Lxprcssway (1h-8). Thc rRad w asR
provide connectivity with the much-touted
Reliance-HSIIDC SEZ besides the Garhi Harsaru
0ry 0cpRl. Thc ncw nN wRud bc parac lR lhc
expressway till it merges ahead of the IFFCO
ChRwN. Thc prRpRscd cxprcssway w lRuch 16
new nearby residential colonies and would also
lRuch a cRmmcrca cRrrdRr. Thc prRjccl s undcr-
construction and is expected to be complete by
2014-15.
RAPID METRO RAIL GURGAON
(RMRG)
PrRmRlcd by 0LF, lhs s lhc rsl mclrR by any
private company in the NCR. A total of 20 km.
rapid metro rail has been planned which will
provide connectivity between Sikanderpur in
Gurgaon with NH-8. A 6 km. rapid metro rail
under Phase-I is in advanced stages of
cRnslruclRn. Ths w prRvdc lhc much nccdcd
access into areas like Cyber City, Mall of India
and NH8. RMRG Phase-I is expected to commence
commercial operations by 2013-14.
Employment
Indicators in
Gurgaon
6urgaRn s an nduslra and nanca ccnlrc RI
Haryana. It has now emerged as one of the
prRmncnl dcslnalRns IRr lT]lTcS RulsRurcng
and R-shRrng hubs, many duc lR ls prRxmly
to the national capital coupled with huge
availability of quality commercial properties and
IavRurabc gRvcrnmcnl pRccs. Thc cRmmcrca
Rcc spacc s cRnccnlralcd n 1Rrlh 6urgaRn,
GURGAON OFFICE SPACE
DYNAMICS
BeFORE
2008
2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
Stock
Occupied Stock
20
10
30
40
50
60
70
80
2008
28 km. Delhi-Gurgaon
Expressway and 25-km.
Gurgaon-Faridabad Link
Road are the major
arterial roads
Upcoming eight-lane 18 km.
Dwarka Expressway will aid
in decongesting the
existing Delhi-Gurgaon
Expressway
INVESTMENT
advisory REPORT
Employment Hubs in Gurgaon
PROJECT NAME LOCATION MAJOR COMPANIES
BPTP I Park Udyog Vihar Cisco, Deloitte
DLF Cyber City DLF Cyber City BCG, Cannon, Emerson, Google, KPMG
Global Foyer Golf Course Road Ciesta Hospitality, Stryker Hospitality
Spaze I-Tech Park Sohna Road Capgemini, Aircel, Shoppers Stop, Yamaha Music
JMD IT Park Sohna Road Convergys, Global Expo
majorly around DLF Phase I-V, Sohna Road and
Golf Course Road while the industrial hub is
concentrated in South Gurgaon region of
Manesar. Renowned manufacturing companies
like Maruti, Suzuki, Hero Motors, Honda and
Toyota have their base in Manesar.Major builders
who have planned residential projects in Gurgaon
are DLF, Anantraj, Godrej, Unitech and Emaar
MGF.
Currcnly 6urgaRn has 55 mn. sq. Il. RI Rcc
space of which 40 mn. sq. ft. is occupied. We
cxpccl 6urgaRn Rcc spacc lR pRsl an
cncRuragng grRwlh IRr lhc ncxl vc ycars unl
2017. whc lhc Rcc slRcN w ncrcasc by 33%,
lhc Rccupcd Rcc spacc w gR up by a slcar
39% by 2017. CRnscqucnly lhc vacancy ralc w
cRmc dRwn IrRm lhc currcnl cvc RI 26.5% lR
22.1%. wc IRrcscc lhal lhc cmpRymcnl
generation happening in the service industry will
feed the growth of residential markets in the
zone.
Gurgaon has emerged as
one of the prominent
destinations for IT/ITeS
outsourcing and R-
shoring hubs
Gurgaon to witness
another 22.3 mn. sq.ft. of
new RLI VISSOy by 2017
Gurgaon total RLI
space stock is 55 mn. sq.ft.
of which 40 mn. sq. ft. is
occupied
INVESTMENT
advisory REPORT
DESTINATION
DWARKA EXPRESSWAY
(Sec 103-106, 109-113)
A new residential belt has emerged along the
upcoming Dwarka Expressway or Northern
Peripheral Road (NPR). The 18 km. expressway will
provide an alternative link between Delhi and the
commercial hub, Gurgaon. Based on its proximity
to the Dwarka Sub-city (Delhi) and to the city
centre of Gurgaon, the expressway can be sub-
divided into two parts viz. North and South. The
northern stretch starts from Sector 103-106, 109-
113 in close proximity to Dwarka and ends at
Sector 99 near the turn where the NPR connects
with the NH8. The southern stretch begins from
Sector 37D the far end of the NPR and terminates
near Manesar on the NH-8. The south stretch
2009 2010
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
N
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RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF
DWARKA EXPRESSWAY (Sec 103-106, 109-113)
2011
2012*
31%
comprises Sectors 37, 37C, 37D, 83, 84 and 88.
This entire belt is predominantly a residential
area with a small portion of commercial and
industrial developments.
ThRugh lhc cnlrc bcl w mmcnscy bcncl
from the new link road between Gurgaon and
Delhi, we anticipate the north region (Sec 103-
106, 109-113) RI lhc cxprcssway lR bcncl mRrc
compared to the south. We base our argument
primarily on account of north region's proximity to
Dwarka Sub-city, Delhi International Airport and
the proposed diplomatic enclave in Dwarka Phase
II.
PROJECT LAUNCH TREND IN
DWARKA EXPRESSWAY
2012* 2007 2009 2011
7,456
694
230
2,146
PRICE FORECAST
2012
Dwarka Expressway Dwarka Sec. 22-23
`10,200
2017E
`10,200
`17,300
`4,900
15.6%
0.3%
6.5%
4.2%
8.4%
6,839
2008 2010
141
1,374
2008 2007
18,649 residential
units launched in the
micro-markets along the
Dwarka Expressway since
2007
77%
WAS launched IN
the last 21 months
OF THE RESIDENTIAL
UNITS
RESIDENTIAL
INVESTMENT
advisory REPORT
PRICE MOVEMENT
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
2009
52%
40%
Dwarka Sec. 22-23 Dwarka Expressway Discount Margin
2010 2011 2012 2013E 2014E 2015E 2016E 2017E
Developers started taking keen interest in this
locality only in 2009. Since 2009, the Northern
Region of this belt has witnessed the launch of
17,815 residential units and 92% of these were
launched during the last thirty-three months. The
destination witnessed healthy sales primarily on
account of euphoria associated with the new
connectivity. However, the sale momentum has
subsided for the projects launched in 2012. We
believe this is just an aberration, as the
2007 2008
destination has witnessed an average absorption
of 3,180 units per annum between 2009 and 2011.
The rate of unsold inventory climbed to 31% as
on Q3 2012, however, understanding the long
term potential of this destination the developers
continued launching new projects. The
destination witnessed the launch of 7,456 units in
lhc rsl nnc mRnlhs RI 2012 as agansl 6,839 unls
launched throughout 2011.
CONNECTIVITY TO IMPORTANT LOCATIONS FROM SEC.111
* By road
Distance Travel time
17
km
11
mins
ROA G D
M
D G
A O
O L
F R
C E O S UR
IRP A O
I R
T G I
E
C C
O A
L N
P N
A T UGH
ES N A
A R
M
28
km
17
mins
29
km
18
mins
13
km
8
mins
9
km
6
mins
Annual average
absorption rate in the
Dwarka Expressway 3,180
units
Selected destination
primarily on account of
its proximity to Dwarka
Sub-city, IGI Airport and
the proposed diplomatic
enclave in Dwarka Phase II
INVESTMENT
advisory REPORT
Investment
Options in Dwarka
Expressway
SELECT PROJECTS
Project Sector Developer No. of Units Launch Date Completion Date
Vedas 108 Raheja Builders 250 Nov-10 Dec-13
The Residency 103 The Landmark Group 500 Dec-10 Mar-14
Centrum 103 India Bulls 750 Mar-09 Mar-13
Aura Phase III 110 Mahindra Life Spaces 110 Apr-11 Mar-14
1,900 - 3,447 9.3 - 16.9
950 - 1,460 4.7 - 7.2
3BHK
2BHK
At present, Sec 111 on the Dwaraka Expressway is
connected with the important NH-8 through the
Major Sushil Aima Marg, which also connects it
with the Urban Extension Road II (UER-II) that
goes towards the Indira Gandhi International
ArpRrl. 0ajRr Rcc mcrR-marNcls Nc 6RI
Course Road and MG Road are just 13 km. and
9 km. from Sector 111. Going forward, the under
construction 18 km. Dwarka Expressway will
provide an alternative road to the existing
congested Delhi-Gurgaon Expressway. Connect-
-ivity between the two cities will be enhanced
once this expressway is in place.
Dwarka Sec 22/23 is in close proximity to the
selected destination and is also an established
at ` 10,200/sq. ft. However, the price in
Dwarka Expressway Sec 103-106, 109-113 is
around `4,900/sq. ft., which is a 52% discount.
Based on our investment rationale as discussed
above we expect prices to rise to `10,200/sq. ft.
thereby reducing the discount to 40% by 2017.
Major RLI PDKNI1V OLNI
LROI CRIKVI 5oad and MG
Road DKI MIV1 I NP. and 9
NP. KIVSIL1LVIOy IKRP 6IL.III
RI DwDKND IXSKIVVway
3KLLI L^ IwDKND IXSKIVVway
1o L^LKIDVI 1o `10,200/sq.I1.
IKRP 1II LIKKI^1 OIVIOV
RI `4,900/sq.I1. a IUo% SKLLI
DSSKILLD1LR^ L^ YIDKV
residential micro-market with prices averaging
from both Noida and Greater Noida. The CBD of
Connaught Place is only 18 km. from this region.
With the upcoming metro line the accessibility of
this destination will improve. Moreover, unlike
Gurgaon, this region has ample groundwater
coupled with a continuous supply from the
Ganges. Spread over 3,635 hectares, many real
estate developers have launched huge townships
like Amrapali Group's Leisure Park, Leisure Valley,
Supertech's Eco Village-I & II, Earth
Infrastructure's Earth Sapphire Court and
Antriksh's Antriksh Forest.
As on September-2012, Greater Noida has witnessed a
total of 127,424 residential units being launched
since 2007. Of these, a total of 79,746 units have
been absorbed resulting in 37.4% remaining unsold.
However, in the year 2010 Greater Noida
witnessed the highest number of launches and
absorption owing to its connectivity with Noida
Cly Ccnlrc and aRrdabc prcng RI lhc
apartments. Recently the land row problem has
been resolved and developers have been allowed
to commence construction.
GREATER
NOIDA
Greater Noida is a new suburb located 20 km from
Noida in Gautam Buddha Nagar district of Uttar
Pradesh. Spread over 20,000 acres, it is situated
about 40 km. south-east of New Delhi and forms a
part of the NCR. Greater Noida Industrial
Development Authority (GNIDA) is the nodal
agency for the overall development of this region.
Physical infrastructure of Greater Noida has been
crafted very meticulously by the GNIDA. Wide
roads along with service roads for all the major
arterial roads have been built. It also boasts of
lnda's rsl '6rand Prx' whch marNcd ls
presence on the International Motor Racing
Circuit.
Greater Noida is well connected with Noida and
Agra. A 25 Nm. sx-anc 1Rda-6rcalcr 1Rda
Lxprcssway cRnnccls ScclRr 15 RI 1Rda wlh lhc
Alpha Commercial belt of Greater Noida.
0RrcRvcr, a 165 Nm. amuna Lxprcssway asR
passes through the city providing connectivity
with Agra via Mathura. A 35 km. Metro line has
been approved by the Noida and Greater Noida
Authority that will connect new sectors of Noida,
Greater Noida, Ghaziabad and South Delhi. The
metro rail would provide connectivity between
Noida City Centre (sector 32) and Greater Noida.
1Rda LxlcnsRn, 1Rda ScclRrs 71, 72, 78 and 62
are some of the major nodes of this metro line.
Greater Noida is emerging as a planned industrial
region, an educational hub and also as an
aRrdabc hRusng RplRn. hRnda Sc Cars,
Daewoo Motors, Yamaha Motors, Delphi
Automotive, Samsung India, LG, Wipro, Videocon
and TEVA Pharmaceuticals are some of the major
companies that have set up their base here. It
also has some of the most prestigious
engineering and management colleges like Birla
Institute of Management and Technology,
Apeejay Institute of Technology, Noida Institute of
Engineering and Technology, Noida International
University and IEC College of Engineering.
Residential micro-markets have evolved along the
amuna Lxprcssway and sRmc RI lhc prmc
residential sectors are Alpha, Beta, Chi, Delta and
Pi.
kcccnly, 1Rda LxlcnsRn has cmcrgcd as an
aRrdabc hRusng hub RI lhc 1Ck. ThRugh parl
of Greater Noida, it is nomenclature as 'Noida
LxlcnsRn' as l s n cRsc prRxmly wlh lhc
1Rda Cly Ccnlrc. Ths hcps lR dcrcnlalc l
INVESTMENT
advisory REPORT
RESIDENTIAL PROJECT
LAUNCH TREND IN GREATER NOIDA
2007 2008 2012* 2009 2010 2011
6,121
3,035
5,638
82,150
23,619
6,860
Connaught Place (CBD) is a
mere 18 km. from Noida
Extension
Builders allowed to
resume construction in
Noida Extension
127,424 residential units
launched since 2007
INVESTMENT
advisory REPORT
140,000
120,000
100,000
80,000
60,000
40,000
20,000
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND SUPPLY ANALYSIS OF GREATER NOIDA
2007 2008 2009 2010 2011 2012*
18%
22.2%
21.4%
29.8%
36.3%
37.4%
YAMUNA EXPRESSWAY
A 165 km. six-lane expressway connecting Greater
Noida with Agra started in August-2012. This
access controlled toll expressway is a better
alternative to NH-2 which earlier used to handle
a lhc Agra bRund lrac IrRm lhc 1Ck. Thc
expressway has reduced the travel time between
Noida and Agra from 5 hours to less than 2
hRurs.ll w rccvc lrac cRngcslRn Rn lhc 1h-2
(which runs through the cities of Faridabad,
Ballabgarh and Palwal) and Old Grand Trunk Road
(NH-91).
NOIDA - GREATER NOIDA
EXPRESSWAY
A 25 km. six-lane expressway providing
connectivity between the two satellite cities of
the NCR i.e. Noida and Greater Noida is
operational. It starts at Sector 15A of Noida and
ends at the Alpha commercial belt in Greater
Noida. This expressway has reduced the travel
time between the commercial centres and
residential complexes of Greater Noida with the
Delhi CBD.
Upcoming Infrastructure
FARIDABAD-NOIDA-GHAZIABAD
(FNG) EXPRESSWAY
A 56 km. expressway meant to connect Faridabad-
1Rda-6hazabad had bccn Ralcd way bacN n
1993 lhc haryana gRvcrnmcnl dd nRl nd lhs
feasible and scrapped the idea in 1998. However,
construction has begun on a stretch of 16 km.
which falls under the jurisdiction of Noida
Authority. As on date an 8 km. stretch has been
constructed. This stretch is an important link
between Noida and Ghaziabad. Currently, the
congested NH-24 is the only link between the two
cities and once the 16 km. stretch is complete, it
will provide smooth and hassle free travel
between Noida and Ghaziabad. This road will also
provide speedy access to Greater Noida.
METRO LINE
The City Centre Metro line will be extended till Eco
Village via Sector 71. Out of the planned four
stations two will be in Noida Extension. The Metro
terminal will be near Eco Village-III, which is
around 3 km. from Noida Extension roundabout.
In addition to Noida Extension, group housing
projects are also being constructed in various
areas of Noida, especially from Sectors 74 to 79,
Sectors 112 and 119. The Metro extension will even
cater to these areas where nearly 50 housing
projects are being constructed. This would be the
rsl 0clrR ka cRnncclng 1Rda LxlcnsRn wlh
Delhi-NCR.
Recently completed
Yamuna Expressway has
reduced the travel time to
Agra to less than 2 hours
Metro Rail has been
proposed for connecting
Eco Village via Sector 71
INVESTMENT
advisory REPORT
Greater Noida
Greater Noida is emerging as one of the most
remarkable models for the industrial
infrastructure. It is regarded as the most favoured
location for industrial development owing to its
favourable government policies, huge availability
of land tracts and talented workforce. The region
has attracted a total industrial investment of
`10,000 crore from domestic as well as multi-
national companies. Honda Siel Cars, Daewoo
Motors, Yamaha Motors, Delphi Automotive,
Samsung India, LG, Videocon and TEVA
Pharmaceuticals are some of the major
companies that have set up their base here.
Greater Noida is emerging as an IT/ITeS hub,
mainly due to conscious measures taken by the
Greater Noida Industrial Development Authority
(GNIDA). Taking cognizance of the IT industry
grRwlh lraclRn, lhc 61l0A s Rcrng lhc bcsl RI
the infrastructure including uninterrupted power
as well as water supply. The sectors in the IT
industry that have witnessed remarkable growth
in Greater Noida are IT services, software
products, IT enabled Services and e-commerce
business. Greater Noida is poised to develop as
the next major IT destination with a number of
planned or upcoming IT & Bio tech parks such as
Wegmans Industries, Amprapali Tech park, Wipro
IT Park, Globus IT Park, Habitech Tech Park and
Kalika Infotech.
MNCs have got an invigorating platform as the
government is encouraging their presence here.
World-class infrastructure coupled with investor
friendly policies have lured many MNCs to set-up
base in Greater Noida. Sectors like Alpha, Beta,
Gamma, Swarn Nagari, NRI City and Golf Link 1
have emerged as commercial business districts.
Currcnly 6rcalcr 1Rda has / mn. sq. Il. RI Rcc
space of which 2.4 mn. sq.ft. is occupied. We
cxpccl 6rcalcr 1Rda Rcc spacc lR wlncss an
cncRuragng grRwlh IRr lhc ncxl vc ycars unl
2017. whc lhc Rcc slRcN w ncrcasc by 122%,
lhc Rccupcd Rcc spacc w gR up by a
spcclacuar 1/1% by 2017. CRnscqucnly lhc
vacancy rate will come down from the current
cvc RI /0.5% lR 35./%. wc IRrcscc lhal lhc
employment generation happening in the service
industry will feed the growth of residential
markets in the zone.
GREATER NOIDA OFFICE
SPACE DYNAMICS
BeFORE
2008
2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
Stock
Occupied Stock
2
1
3
4
5
6
7
8
2008
9
10
stock in Greater Noida -
4 mn. sq .ft
expect it to increase to 9
mn. sq.ft. by 2017
Greater Nodia has
attracted a total
industrial investment of
`100 bn. from domestic as
well as multinational
companies
EXISITING OFFICE SPACE
INVESTMENT
advisory REPORT
DESTINATION
NOIDA EXTENSION
Noida Extension comprising Sectors 1, 2, 4, 16B,
16C, 16D and Knowledge Park V have emerged as
the most sought after destination. Though, Noida
Extension is a part of Greater Noida, it is known
as 'Noida Extension' on its close proximity with
the Noida City Centre. This helps to distinguish it
from both Noida and Greater Noida. It is an
upcoming region for Greater Noida situated in
close proximity to Noida. Noida Extension is only
7 km. from Noida City Centre and is adjacent to
Noida. Sectors 18, 32 or 62 in Noida are barely 5-
15 minutes from Noida Extension. Moreover, the
CBD of Connaught Place is only 18 km. from this
region. With the upcoming metro line the
accessibility will be enhanced.
The Yamuna Expressway, F1 Car Racing Circuit
and Noida-Greater Noida Expressway have
completely changed the picture of this region.
2010
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF NOIDA EXTENSION
2011
2012*
SRund nIraslruclurc, aRrdabc prcng and
proximity to Noida made this region the most
sought after destination in the NCR. Based on the
above factors, many real estate developers have
launched huge townships like Amrapali Group's
Leisure Park, Leisure Valley, Supertech's Eco
Village and Antriksh's Antriksh Forest.
Developers started taking keen interest in this
locality only in 2010. Since 2010, Noida Extension
has witnessed the launch of 80,246 residential
units and 81% of these were launched in the year
2010. The entire region has come to a standstill
due to the land acquisition problem; as a result
this region witnessed very few launches of
residential projects between 2011 and Q2 2012.
However, in August 2012, it received the approval
to continue with its construction from GNIDA.
Hence, we anticipate launches in this region to
regain its 2010 momentum.
TREND IN NOIDA EXTENSION
2012* 2011
64,890
PRICE FORECAST
2012
Noida Extension Noida Sec. 50-52
`6,975
2017e
`6,760
`11,260
`3,200
1,271
2010
14,890
30.7%
38.4% 38.6%
80,246 residential units
launched in Noida
Extension since 2010
81% of these were
launched in the year 2010
INVESTMENT
advisory REPORT
PRICE MOVEMENT
12,000
10,000
8,000
6,000
4,000
2,000
Noida Sec. 50-52 Noida Extn. Discount Margin
2010 2011 2012 2013E 2014E 2015E 2016E 2017E
The destination witnessed healthy sales in 2010
prmary duc lR prRxmly lR 1Rda and aRrdabc
pricing. However, the sale momentum had slowed
down during 2011 and Q2 2012 for the reason
mcnlRncd abRvc. wlh a sRulRn lR lhc and
acquslRn prRbcm wc bccvc lhs dcslnalRn
to gain traction. The rate of unsold inventory
cmbcd lR 38% as Rn 43 2012. hRwcvcr, laNng
cRgnzancc RI lhc slualRn wc bccvc lhs
destination has a huge potential to grow as a
rcsdcnla hub and lhc unsRd nvcnlRry
percentage is anticipated to come down.
1Rda ScclRrs 50-52 arc lhc cslabshcd mcrR-
markets of Greater Noida with prices averaging at
`6,975/sq. ft. However, the price in Noida
Extension is around `3,200]sq. Il., whch s a
5/% dscRunl. wc cxpccl lhs dscRunl lR narrRw
dRwn lR /0% by lhc cnd RI 2017 rcsulng n
prices moving up to `6,760/sq. ft.
Investment Options in Noida Extn.
1,995 - 3,400 6.4 - 10.9
4BHK
1,480 - 2,100 4.7 - 6.7
895 - 1,060 2.9 - 3.4
410 - 580 1.5 - 2.2
3BHK
2BHK
1BHK
SELECT PROJECTS
Project Sector Developer No. of Completion
Units Date
Eco Village -I 1 Supertech 5,000 Apr-15
Gaur City II 16C 6aursRns 3,000 0cc-1/
Terrace 1 Amarpa 3,000 2cl-1/
Homes Group
Eco Village 16B Supertech 8,000 Sep-14
II & III
/0%
5/%
Prices in Noida Extension
to increase to 6,760/ sq.ft.
from the current levels
of `3,200/sq.ft.
`
Hidden Gem
Neemrana
Neemrana is situated in North-Eastern Rajasthan
and falls under the National Capital Region (NCR)
of Delhi. It is located close to the NH-8 which
forms a part of the Golden Quadrilateral.
Currently, there is absolutely no mass rapid
transport and as such the region has extremely
poor inter zone connectivity. The NH-8 is the only
major arterial road providing connectivity with
important regions in the NCR. The real estate
development in Neemrana is driven by the fact
that it is one of the major nodes of the Dedicated
Freight Corridor (DFC) and Delhi-Mumbai
Industrial Corridor (DMIC). Recently, the
Rajasthan government allotted 2,500 acres to the
Japanese companies to set up their operations
here. This region is known as the Japanese
Investment Zone. Moreover, the government is
also setting up an Export Promotion Industrial
Park (EPIP) in an area of more than 200 acres.
The destination is at a distance of approx. 55 km.,
72 km. and 93 km. from the prominent markets of
the NCR Bhiwadi, Manesar and MG Road,
Gurgaon respectively.
Following are the factors that make Neemrana the
most sought after investment destination:-
. Proximity to the Golden Quadrilateral, NH-8
and the Dedicated Freight Corridor
. Proximity to Delhi International Airport (106
Nm.) asR Rcrs gRRd cRnncclvly wlh
Neemrana. Besides, an independent airport
complex is also proposed to be developed
here.
. Thc gRvcrnmcnl has arcady dcnlcd and
designated land for constructing 'Global City
over 40,000 acres in the Neemrana-Behror
area. Once completed this region will have a
capacity of housing one million people. The
Cyber City, Medi-City, Knowledge City,
Entertainment City, SEZ, World Trade City and
Bio-diversity Park have also been planned
here.
Additionally, widening of the NH8 on this route
cRupcd wlh cRnslruclRn RI yRvcrs w
enhance the connectivity of Neemrana with other
industrial hubs of the NCR. Owing to the above
IaclRrs wc anlcpalc 1ccmrana shRud bcncl
immensely and provide superior investment
returns over a 10 year time horizon.
Over 40,000 acres have
LII^1LII for
constructing 'Global City'
in Neemrana-Behror area
CONNECTIVITY TO IMPORTANT LOCATIONS
* By road
Distance
55
km
72
km
93
km
106
km
117
km
WA I D H I B
, GU D R A G
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LOCATIONS
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23.51 2.85% 17.81 2.82%
MUMBAI METROPOLITAN REGION POPULATION
Source: Ccnsus2011,KnghlFrankkcscarch
Pcpualcn AvcragcAnnuaGrcwlh
13./5 3.38%
1''1 2UU1 2U11
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80000
40000
20000
4000
Under Construction Metro Rail
Under Construction Monorail
Under Construction Rail Line
Proposed
KHARGHAR
10000
WADALA
PRABHADEVI
INVESTMENT
advisory REPORT
MUMBAI MAP
AIROLI
VASHI
RANJANPADA
ULWE
BELAPUR
The MMR is spread over an
area of 4,355 sq.km.
and has a population of
23.51 mn.
Market
Overview
DESTINATIONS
Island city CRaba, Cuc Paradc, TardcR,
0ahaaNshm, Parc, wRr, 0adar,
0ahm, Scwr
Western zone andra, Andhcr, 6RrcgaRn,
0aad, Rrva, 0ahsar, 0ra
kRad, hayandar, vasa, vrar
Central zone wadaa, Chcmbur, 6halNRpar, PRwa,
handup, 0uund, Thanc, Kayan,
0Rmbv, Kasara, Ambcrnalh,
Karjal
Navi Mumbai ArR, vash, 1cru, C0 capur,
Panvc, TaRja, uwc
Thc rca cslalc marNcl RI lhc 00k can bc dvdcd
n lR IRur zRncs .c. lsand Cly, wcslcrn ZRnc,
Ccnlra ZRnc and 1av 0umba.
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and asR rcIcrrcd lR as Rd cly. Thc zRnc hRuscs
lhc Ccnlra usncss dslrcl (C0) cRmprsng
1arman PRnl, CRaba, Cuc Paradc, FRrl and
aard Lslalc. 0umba s lhc busncss capla RI
lhc cRunlry and as such lhc C0 s hRmc lR a
argc numbcr RI cRrpRralc hcadquarlcrs. Thc
Rmbay SlRcN Lxchangc (SL) s lhc Rdcsl slRcN
cxchangc n Asa and sRmc RI lhc bggcsl lndan
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majRr Rcc RcalRns. Thc rcsdcnla pRcNcls RI
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way IRr argc scac rca cslalc dcvcRpmcnl s by
gRng vcrlca.
Thc gcRgraphy bcgnnng IrRm andra lRwards
lhc nRrlh n lhc 00k s dcnlcd as lhc wcslcrn
zRnc. ll s hRmc lR lhc panncd cRmmcrca hub
RI lhc andra Kura CRmpcx (KC), lhal has lhc
cRunlry's argcsl slRcN cxchangc lhc - 1alRna
SlRcN Lxchangc (1SL) and mpRrlanl Rccs Nc
Amcrcan CRnsualc and rlsh hgh
CRmmssRn. 2lhcr sgncanl Rcc slRcN s Rn
lhc Andhcr Kura kRad and sRmc aRngsdc
wcslcrn Lxprcssway up lR 0aad. wlh rcspccl lR
rcsdcnla dcvcRpmcnl, andra and }uhu arc lhc
mRsl sRughl aIlcr RcalRns and hcncc cRmmand
lhc hghcsl prRpcrly prccs n lhs zRnc. Thc
wcslcrn zRnc has a vbranl sRca nIraslruclurc
wlh lhc prcscncc RI qualy rcla, cducalRn,
cnlcrlanmcnl and hcalhcarc RplRns. Thc
prRpcrly prccs dccnc as Rnc gRcs nRrlhwards
IrRm lhc cly ccnlrc. whc cmpRymcnl and sRca
nIraslruclurc arc lhc drvcrs unl 0aad,
RcalRns Iurlhcr nRrlh arc drvcn by cRnncclvly
prmary by suburban lran nclwRrN up lR vrar.
Thc ccnlra zRnc cRvcrs lhc nRrlhcrn rcgRn
slrclchng IrRm SRn lR Karjal. wc havc
wlncsscd a phcnRmcnRn RI shIl n Rcc spacc
dcvcRpmcnls, nRrlh RI lhc 00k and as a rcsul
hgh quanlum RI Rcc budngs havc cRmc up
Rn lhc LS rRad, PRwa and Thanc Rcalcs RI
lhs zRnc. Thc slrclch up lR Thanc has dcccnl
sRca and physca nIraslruclurc, and lhc
prcscncc RI scvcra Rrganzcd rcla RplRns Rn
lhc LS rRad n lhc asl vc ycars has addcd lR
lhc appca RI lhc rcsdcnla dcvcRpmcnls n lhc
rcgRn. Thc cRnncclvly n lhs zRnc s many
lhrRugh lhc Laslcrn Lxprcssway and lhc
suburban lran nclwRrN. FrRm rca cslalc
dcvcRpmcnl pcrspcclvc lhc mRsl crlca IaclRr
bcyRnd Thanc s lhc cRnncclvly prmary
2007 2008 2012* 2009 2010 2011
RESIDENTIAL LAUNCH TREND
IN MMR
INVESTMENT
advisory REPORT
44,483
37,127
72,129
112,543
69,150
41,950
The residential pockets of
the island city like LII
Parade, Napean sea Road
and Worli are amongst
the costliest in the
country
With the Arabian Sea on
three sides and lack of
land availability there is
limited scope for
horizontal expansion in
the island city, and the
only way for large scale
real estate development is
by going vertical
In the Western zone, while
employment and social
infrastructure are the
drivers until Malad,
locations further north
are driven by connectivity,
primarily by suburban train
network up to Virar
2008 2009 2010
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF MMR
2011 2012*
through suburban train network. This is because
whc lhcsc dslanl suburbs prRvdc aRrdabc
housing options, they are not self-sustainable
with respect to employment opportunities.
Developed as the planned satellite city of
Mumbai, Navi Mumbai is emerging as a self
-sustained real estate market on account of the
presence of employment opportunities primarily
in the IT/ITeS sector. While CBD Belapur has been
panncd as lhc Rcc dcvcRpmcnl hub, Rlhcr
sgncanl Rcc mcrR-marNcls arc vash and lhc
Thane-Belapur Road. The zone has several options
IRr qualy cducalRn and rcla wlh vash bcng lhc
most prominent micro-market commanding the
highest property price in the zone. The
connectivity is mainly through the suburban rail
network that also connects the zone with the
island city and the central zone. Besides, the road
connectivity is supported by the Thane-Belapur
Road and the Palm Beach Road.
CONSTRUCTION UNITS
The momentum in MMR
residential market is down
from 1,12,543 units
launched in 2010 to just
41,950units in
2012 (Until September)
INVESTMENT
advisory REPORT
2007
Island city
Western zone
Central zone
Navi Mumbai
5%
20%
36%
39%
6%
8% 8%
14%
18%
24%
In the Central zone, while
distant suburbs beyond
Thane provide Dordable
housing options, they are
not self-sustainable with
respect to employment
opportunities
Developed as the planned
satellite city of Mumbai,
Navi Mumbai is emerging as
a self-sustained real
estate market on account
of the presence of
employment opportunities
primarily in the IT/ITeS
sector
39%of the residential
supply is concentrated in
the Western zone
Real Estate Drivers
Employment Infrastructure Development
Western Expressway
Road Network
The Western Expressway
and the Eastern
Expressway are the
arteries of road
connectivity in Mumbai
ROAD NETWORK DISTANCE OBSERVATIONS
Western Expressway 25 km.
Eastern Expressway 24 km. This 6 lane arterial road between Sion and Thane provides the south-
north connectivity
Sion Panvel Highway
Extending from Bandra to Dahisar, this 8 lane arterial road has been
enhancing the south-north connectivity in the city instrumental in the city
25 km. This 8 lane road has been instrumental in providing the west-east
connectivity between Mumbai and Navi Mumbai
INVESTMENT
advisory REPORT
Rail Network
Suburban Train network
Upcoming Metro &
Monorail network
Air Network
Eastern Expressway
Upcoming Eastern
Freeway
BFSI
IT/ITeS
SUBURBAN TRAIN DISTANCE OBSERVATIONS
NETWORK
Churchgate - Virar 60 km.
CST - Kalyan - 121 km./115 km. This suburban rail network provides excellent south-north
Kasara/Khopoli connectivity of the city with the central suburbs
Thane - Panvel 49 km. This suburban rail network provides connectivity with the satellite city
of Navi Mumbai
Crucial for south-north connectivity in the western zone, separate
lines for suburban trains provide excellent connectivity
PROJECT
Mumbai Trans
Harbour Link
(MTHL)
DISTANCE
22 km.
OBSERVATIONS
This `96,300mn. six-lane sea bridge will be
lhc mRsl sgncanl nN bclwccn 0umba
and Navi Mumbai at Sewri and Nhava
rcspcclvcy. Thc nanca Icasbly has
been concluded. The authority has shortlisted
contractors so that the work can be
commissioned by 2013.
STATUS
Planned
EXPECTED
COMPLETION
Beyond 2017
Upcoming International
Airport
Service Sectors
The suburban train
network is considered as
the lifeline of the city and
has a VLL^LLD^1 bearing
on the real estate
development of the
connected regions
1IIIILL^l^LÎ1KLKlI
Î1\LKK\lIIIIKI''1II
ÎLIÎIIII\I'1I'1
LL^ÎL1lVl1Yl^1IILl1Y
1IKLILI^''KIlI
1K^'ILK1'Y'1I^
l^VI'1Î^1
IVl'LKYKIILK1
PROJECT
Eastern Freeway
Multi-modal
Corridor (Virar -
Alibaug)
DISTANCE
16.8km.
1/0km.
OBSERVATIONS
Thsprcjcclwcnhancclhcccnncclvlycf
SculhMumbawlhcaslcrnsuburbsand
scrvcasanmpcrlanlnkrcadrunnng
paraclclhcEaslcrnExprcssway.Ths
frccwaywbcgnalCSTandgcuplcAnk
andfurlhcrlcPanjarpcandGhalkcpar.Thc
rcacslalcmarkclscfChcmburandWadaa
wbclhcbggcslbcncfcarcscnacccunl
cflhscnhanccdccnncclvlywlhlhc
CcnlrausncssDslrcl(CD)cfSculh
Mumba
Ths`100bn.prcjcclsbascaybrcadcnng
cflhccxslngrculccfVrar-hwand-
Panvc-Pcn-Abaug.Thsccrrdcrw
prmarycnhancclhcccnncclvlyallhc
pcrphcrycflhcMMkandascwlhclhcr
clcsbyscrvngasanklcmpcrlanl
nalcnahghwayslhalnkMumbalcclcs
kcAhmcdabad,Dch,Chcnnaand
angacrc.Thcandsurvcywcrksn
prcgrcssandPhasclVrar-Chrncr(Icar
JIPT)scxpcclcdlcbcccmpclcby2017
STATUS
Undcr
Ccnslruclcn
Panncd
EXPECTED
COMPLETION
2013
cycnd2017
PROJECT
Metro Rail Phase
I (Versova -
Andheri-
Ghatkopar)
Metro Rail Phase-
II (Charkop -
Bandra-
Mankhurd)
Monorail Phase I
(Wadala-
Chembur)
Monorail Phase II
(Jacob Circle-
Wadala)
Navi Mumbai
suburban train
network
extension (Nerul-
Seawood-Uran)
Navi Mumbai
Metro Rail Phase
I (Belapur to
Pendhar)
DISTANCE
11./0km.
31.90km.
8.2km.
12km.
32km.
11.10km.
OBSERVATIONS
Thcmuchnccdcdwcsl-caslccnncclvly
lhrcughlhcMkTSwbcaddrcsscd.Ths
nkwcnhancclhcccnncclvlywlhcffcc
ccalcnscfAndhcrkcMlDCandSEEPZ.
Ccnslruclcnwcrksnlhcadvanccdslagc
cnlhsphascwlh12slalcnscnrculc.
Thcwcsl-caslccnncclvlylhrcughlhsMkTS
wbcncflrcsdcnlapcckclskcCharkcp
andOshwaranlhcwcslcrnsuburbsand
ChcmburandMankhurdnlhcccnlra
suburbs
Thsrculcwhavc7slalcnscnrculcand
prcvdcccnncclvlywlhccalcnskc
haklPark,PCLcccnyandChcmbur
Wlh11slalcnscnrculclhsprcjcclw
cnhanccccnncclvlynclhcrwscccngcslcd
ccalcnscfLcwcrParcandDadar.Alhcugh
lhcfnancafcasblysccmpclcd,lhc
prcjcclwcrkwbcccmmsscncdcnyaflcr
asucccssfuruncflhcPhascl
Currcnlylhcrcgcnsccnncclcdlhrcughlhc
JIPTrcad.Hcwcvcr,lhssuburbanlran
nclwcrkwcnhanccccnncclvlyandprcvc
bcncfcalcrcsdcnlamarkclskcUwc.
Thcccnslruclcnwcrksnprcgrcssfrcmlhc
ScawccdcndandwcxlcnduplcUran
Thc11ccvalcdslalcnscnrculclhsmclrc
ranclwcrkwcnhanccccnncclvlywlhn
lhcIavMumbazcnc.kcsdcnlapcckcls
cfKhargharwrcasclhcmaxmumbcncfl
cnacccunlcflhccnhanccdccnncclvlywlh
lhcccmmcrcahubscfCDcapurand
Tacja
STATUS
Undcr
ccnslruclcn
Panncd
Undcr
Ccnslruclcn
Panncd
Undcr
Ccnslruclcn
Undcr
ccnslruclcn
EXPECTED
COMPLETION
2013
cycnd2017
2013
2016-17
2016
201/
'IBIKB^KlIÎ1\LKKl^
^VlÎ^Bl\lIIBI
IX1IÎIIL^1II2K^.
'1KI1LIIKL^ÎKII1L
UK^
WI'1IK^ZLÎLL^1KlBI1I'
%LI1IILLLIIlII
LIIlLI'ILIl^1IILl1Y
UPCOMING MAJOR INFRASTRUCTURE PROJECT
EmpcymcnllndcalcrsnMMk
Mumbaslhcfnancacaplacflhcccunlryand
assuchlhchghpacccfcmpcymcnlgcncralcn
hcrcwdrvclhcgrcwlhcflhcrcsdcnla
markcls.FSlandlT/lTcSarclhcmcsldcmnanl
nduslrcsandbcnglhcbusncsscaplals
aschcmclclhcccrpcralchcadquarlcrscf
scvcraccmpancs.
Thccurrcnlslualcnndcalcslhallhcwcslcrn
zcncwlh33%cflhclclacccupcdcffccspacc
nlhcclyhaslhchghcsldcnslycfcffccspacc
mpyngaargcprcpcrlcncfcmpcymcnl
cppcrlunlcscmanalngnlhczcnc.Thcccnlra
zcncccnlrbulcs30%cflhccmpcymcnl.Thc
l^VI'1Î^1
IVl'LKYKIILK1
PROJECT
Navi Mumbai
Metro Rail Phase
II & III (Pendhar
to Khandeshwar)
Western Elevated
Rail Corridor
(Oval Maidan -
Virar)
DISTANCE
10.35km.
62.27km.
OBSERVATIONS
Thsscclcnwlh7slalcnswnkPhascl
alPcndharandslrclchuplcKhandcshwar.
Onccmpclcncflhsphasc,lhcrcsdcnla
mcrc-markclscfKaambc,Kamclhcand
Khandcshwarwbcncflbylhcccnncclvly
wlhCDcapur.
Ths`210bn.lwclrackccvalcdccrrdcrw
cnhancclhcccnncclvlycnlhcChurchgalc-
Vrarscclcnnlhcwcslcrnzcnc.Whc
bcngamassrapdccmmulccplcnlhs
lranccrrdcrwascprcvdcccmfcrlabc
lravcngbycmpcyngarccndlcncdlran
scrvcc.Thsprcjcclwmmcnscybcncfl
lhcrcsdcnlamarkclscfpcrphcrawcslcrn
suburbsbcycndcrvabycnhancnglhcr
ccnncclvlywlhlhcCDcfSculhMumba
andcrcssscclcncflhcMumbaMclrc
Phascl.Thckacardhasapprcvcdlhc
prcjcclandscurrcnlyallhcbddngslagc
whchscxpcclcdlcbcccmpclcbycary
2013.
STATUS
Panncd
ddng
slagc
EXPECTED
COMPLETION
2016
cycnd2017
PROJECT
Navi Mumbai
International
Airport
OBSERVATIONS
lnwakccflhcarlravcdcmandfrcmMMk
ncrcasngfrcm29mn.passcngcrsn2010-
11lcancslmalcd119mn.n2030-31,lhs
scccndnlcrnalcnaarpcrlsbcng
dcvccpcdnIavMumba.Whclhc
rcsdcnlamarkclhaswlncsscdan
cncrmcusgrcwlhnanlcpalcncflhs
prcjccl,lwprcvdcamajcrbccsllclhc
cccncmycflhcIavMumbarcgcnwlha
hcslcfccmmcrcaaclvlcslhalwccmc
up.Thcprcjcclhassccurcdlhc
EnvrcnmcnlaCcaranccnIcvcmbcr2010.
Phasclwhavcanannuacapaclycf10
mn.passcngcrs
STATUS
Panncd
EXPECTED COMPLETION
Phasclby2015
lsandcly Wcslcrnzcnc
Ccnlrazcnc IavMumba
16%
21%
33%
30%
BI'lII'BF'lÎl1/l1I'
lÎI'1KlI''IL^l^^1
LIIlLI'ILILLLIIlIK',1II
Ll1Yl'ILÎ1LLLKILK1I
IIILIK1IK'LI'IVIKI
lÎl^ÎÎI1l^1lLÎ
LLÎ^lI'
MMR OFFICE
SPACE DYNAMICS
2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
INVESTMENT
advisory REPORT
mpacl RI lhc gRba nanca crss Rn lhc
cmpRymcnl sccnarR sl prcvas and lhcrcIRrc
lhc 00k Rcc marNcl s wlncssng a vacancy RI
15%. hRwcvcr, wc cslmalc lhal lhs vacancy w
decline to 9% by 2017 mainly on account of
mprRvcd busncss sccnarR and mulcd Rcc
suppy. wc cslmalc lhal lhc Rccupcd Rcc
spacc n lhc cly w gR up by 63% bclwccn 2011
- 2017. Ths grRwlh n cccl w drvc lhc
rcsdcnla marNcls n lhc cly.
SlRcN
2ccupcd SlRcN
40
20
60
80
100
120
140
COST DETAILS
Stamp Duty 5% (Lcvcd Rn hghcr RI agrccmcnl vauc Rr rcady rccNRncr ralc)
Registration 1% (up to a Maximum of `30,000)
Value Added Tax (VAT) 1% (Rn agrccmcnl vauc)
Service Tax (on under 3% (Rn agrccmcnl vauc)
STATUTORY COSTS
AND MARKET NORMS
STATUTORY COSTS
NORM DETAILS
Time line for property Any time until possession
registration
Re-sale before ARwcd
possession
Transfer charges payable 0.5% of Base Selling Rate
to builder
Loading (as % of carpet) 55% - 80%
(0cvcRpcrs marNcl lhc prRpcrly al 55% Radng Rn usabc carpcl, whch ncudcs
Ircc RI FSl and nRn-vc-abc arcas Nc Rwcr bcd, dryng arca, clc. lmpyng an
ccclvc Radng RI 55-80%.)
MARKET NORMS
The occupied RLI V1ock
in 1II LL1Y will increase by
63% in 1II ÎX1 5 years
61a1I1ory levies in 1II LL1Y
increase 1II cRV1 of
buying proper1Y by as much
as 10%
The proper1Y PDKNI1
norms in 1II LL1Y PDNI L1
D^ L^VIV1or friendly
PDKNI1
The city's real estate
market is growing in the
north-east direction
Mumbai has gained its fair share of glory by
bcng lhc nanca capla RI lhc cRunlry. Thc
dRmnancc RI lhc cly n lhc busncss andscapc
RI lhc cRunlry has bccn drvng lhc rca cslalc
dcvcRpmcnl. wc cxpccl lhs lrcnd lR cRnlnuc n
lhc IRrcsccabc Iulurc. hRwcvcr, wc dR nRl cxpccl
a rcsdcnla marNcls lR rcap lhc bcncls Rn lhc
samc scac. Thc cly s surrRundcd by lhc Araban
Sca Rn lhrcc sdcs and as such and s cxlrcmcy
scarcc n lhc 0umba cly mls. hcncc, lhc
rcgRn w grRw lRwards lhc nRrlh and lhc
caslcrn lcrrlRry, prcdRmnanly 1av 0umba.
hRwcvcr, lhc magnludc RI grRwlh w vary
acrRss lhcsc cmcrgng marNcls dcpcndng Rn
IaclRrs Nc cmpRymcnl RppRrlunlcs,
nIraslruclurc dcvcRpmcnl and cRnncclvly. wc
havc IaclRrcd n lhcsc dynamcs n sccclng lhc
nvcslmcnl dcslnalRns.
As a rcsul RI lhs lhRughl prRccss, wc cxpccl
1av 0umba zRnc and lhc Ccnlra zRnc lR bc lhc
bggcsl bcnccarcs n lhc ncxl vc ycars. 1av
0umba rcgRn s prmary a hub IRr lhc lT]lTcS
nduslry and wc cslmalc lhs mRmcnlum lR
accccralc n lhc ncxl vc ycars. Ths cslmalc s
bascd Rn lhc Iacl lhal l s a panncd cly and
lhcrc s vsbly Rn lhc dcvcRpmcnl RI lhc
nIraslruclurc prRjccls. kcalvcy Rwcr Rcc
rcnlas and argc Rcc spacc RplRns arc IaclRrs
lhal maNc lhs zRnc a prcIcrrcd pacc IRr lhc lT
nduslry. Slralcgc RcalRn Rn lhc 0umba Punc
Lxprcssway, lhal cRnnccls lhc hnjcwad lT bcl RI
Punc, w bc bcncca lR 1av 0umba. 6Rng
IRrward, lhc dcvcRpmcnl RI 00k's sccRnd
nlcrnalRna arpRrl n lhs zRnc w Rny
augmcnl lhc causc.
2ur Rlhcr prRmsng rcgRn n lhc 00k s lhc
ccnlra zRnc. Thc rcRcalRn RI Rcc Rccupcrs
lRwards lhc nRrlh s a lrcnd lhal wc cxpccl lR
cRnlnuc and lhc ccnlra zRnc s cxpcclcd lR
cmcrgc as a sgncanl bcnccary RI lhs. whc
Rcc marNcls Nc lhc andra Kura CRmpcx
(KC), LRwcr Parc and wRr cRnlnuc lR bc
prcIcrrcd RcalRns IRr lhc FSl and cRnsulng
cRmpancs, Rcc dcvcRpmcnls Rn lhc LS kRad
w Iurlhcr Iuc lhc grRwlh RI lhc rcsdcnla
marNcl n lhs zRnc. 2n lhc cRnncclvly IrRnl,
whc lhc Laslcrn Lxprcssway has bccn lhc
Icnc RI rRad cRnncclvly n lhs zRnc, lhc
undcr cRnslruclRn Laslcrn Frccway prRjccl w
bc a grcal suppcmcnl. lls cRnncclvly wlh lhc
PREFERRED
ZONES IN
MMR
prRmsng lT]lTcS hub RI 1av 0umba s n pacc
lhrRugh lhc vash brdgc and lhc ArR brdgc
and lhs w bc cnhanccd by lhc 0umba Trans
harbRur LnN (0ThL).wlh rcspccl lR lhc
cRnncclvly wlh lhc wcslcrn zRnc, lhc upcRmng
0umba 0clrR and lhc 0RnR ka prRjccl w bc a
shRl n lhc armRur IRr lhs zRnc.
INVESTMENT
advisory REPORT
0cvcRpcd as a panncd salclc cly RI 0umba,
1av 0umba has cmcrgcd as a scI-suslanng
zRnc wlhn lhc 00k. Ths zRnc has lhc prcscncc
RI nduslra aclvly n lhc rcgRns RI 0ahapc and
TaRja. hRwcvcr, lhc asl dccadc has wlncsscd a
slcar grRwlh RI lhc lT]lTcS nduslry n lhs zRnc.
1av 0umba prRvdcs a bcllcr qualy RI vng al a
rcalvcy Rwcr prcc lhan 0umba and hcncc
20% RI lhc undcr cRnslruclRn rcsdcnla
prRpcrly n lhc 00k s cRnlrbulcd by lhs zRnc.
Cly and lnduslra 0cvcRpmcnl CRrpRralRn
(Cl0C2) s lhc dcvcRpmcnl bRdy IRr lhc zRnc
cnlruslcd by lhc slalc lR carry Rul lhc panncd
dcvcRpmcnl. csdcs lhc gRvcrnmcnl's and
hRdng, Cl0C2 acqurcs and IrRm Iarmcrs and
Rlhcr prvalc and Rwncrs and lhcn auclRns l as
pcr ls cly's dcvcRpmcnl pan. Thc 1av 0umba
zRnc has wlncsscd hgh grRwlh RI rcsdcnla
dcvcRpmcnl n lhc asl vc ycars. Sncc 2007,
87,055 rcsdcnla unls havc bccn aunchcd
hcrc, RI whch amRsl 65,/03 unls havc bccn
absRrbcd. hRwcvcr, lhc cRnsumcr appcllc was
hl wlh lhc sRarng prRpcrly prccs pullng a dcnl
Rn aRrdably sncc 2010. Thc IaRul RI hgh
NAVI
MUMBAI
RESIDENTIAL LAUNCH
TREND IN NAVI MUMBAI
2007 2008 2012* 2009 2010 2011
7,1/1
9,585
1/,011
28,2/7
20,220
7,850
Bandra Kurla Complex
(BKC), Lower Parel and
Worli continue to be
preferred locations for
the BFSI and consulting
companies
Running parallel to the
Eastern Expressway, the
under construction
Eastern Freeway project
will boost the
connectivity of the real
estate markets in the
island city and central
zone
CENTRAL AND NAVI MUMBAI ZONE MAP
Major Roads
Under construction Monorail
Proposed Metro Rail
Proposed MTHL
Airport
Railway Line
Under Construction Rail Line
Benchmark location
Top destination
Employment Hubs
Proposed
AIROLI
BELAPUR
KHARGHAR
POWAI
JUHU
ANDHERI
BANDRA
DADAR
FORT
COLABA
PANVEL
JNPT
URAN
INVESTMENT
advisory REPORT
Under construction Metro Rail
Proposed Monorail
65,403 units out of
the 87,055 residential units
launched in Navi Mumbai
since 2007 are already sold
INVESTMENT
advisory REPORT
Real Estate Drivers
Employment Infrastructure Development
Thane-Belapur Road
Road Network Rail Network
Suburban train network
Upcoming Metro
rail network
Upcoming International
Airport
Palm Beach Road
IT/ITeS
Manufacturing
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
N
o
.

o
f

U
n
i
t
s
Cumulative Supply Cumulative Absorption % of Unsold Units
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF NAVI MUMBAI
2007 2008 2009 2010 2011 2012*
3%
4%
6%
11%
21%
25%
property price and interest rate was an increase in
the unsold inventory to 25% as on Q3 2012.
Taking cognizance, a large number of developers
have exercised restrain on launching new
projects in 2012.
Air Network
THANE-BELAPUR ROAD
The 20 km. Thane-Belapur Road is the most
important road link in the zone providing both the
intra-zone as well as inter-zone connectivity with
Navi Mumbai. Towards the north it begins at
Thane and towards the south it connects with
CBD Belapur. Going further this road connects
with the Mumbai-Pune expressway that connects
the MMR with Pune. The importance of this road
can bc gaugcd by lhc Iacl lhal majRr Rcc spacc
locations like Airoli, Rabale, Turbhe, Jui Nagar
and CBD Belapur are linked on this road.
Thane-Belapur Road and
Palm Beach Road are the
arteries of road
connectivity in Navi
Mumbai
INVESTMENT
advisory REPORT
Upcoming
Infrastructure
NAVI MUMBAI METRO NETWORK
Of the six planned metro corridors in the zone
that would eventually cover a length of 120 km.,
only one i.e. Belapur-Taloja-Khandeshwar
corridor, encompassing 21.45 km., is worth
considering at this point of time. This corridor will
be developed in three phases and once
completed it will improve the connectivity within
the zone, which currently lacks mass rapid
transport system on this route. It will connect the
residential micro-markets of Kharghar,
Khandeshwar and Kalamboli with the
employment centre of CBD Belapur. The metro rail
network is considered to be a convenient form of
mass rapid transport system. There is a visibility
on the progress of the metro rail in the Navi
Mumbai Zone. The pace of development is
encouraging and we expect that the Phase I will
be completed by early 2014.
SUBURBAN TRAIN NETWORK
The suburban train network in the zone is fairly
decent on account of the connectivity with the
central zone at Thane and the island city up to
Mumbai CST. However, the southern stretch from
Ulwe to Uran lacked connectivity. It was
connected only by the JNPT road. However, with
the under construction 27 km. Nerul-Seawood-
uran nc lhs slrclch w wlncss sgncanl
improvement in connectivity. The network is
expected to be ready by 2016. Widely referred to
as the lifeline of Mumbai, the train network in the
entire MMR is very crucial and to a great extent
nucnccs lhc grRwlh RI rca cslalc dcvcRpmcnl
in the network.
MUMBAI TRANS HARBOUR LINK
(MTHL)
The MTHL project has the potential to become a
game changer in the real estate market. It will
connect the Navi Mumbai zone with the Island
city zone at Sewri and Nhava respectively,
thereby reducing the travel time between these
zRncs sgncanly. Thc sRulhcrn slrclch IrRm
uwc lR uran w bc lhc bggcsl bcnccarcs Rn
account of their connectivity with the CBD
0ndspacc lT SLZ, lhc / mn.sq.Il. Rcc
development of Airoli is situated on this road. The
Rlhcr prRmncnl Rcc dcvcRpmcnls Rn lhc rRad
are Reliance Corporate Park and Dhirubhai
Ambani Knowledge City.
PALM BEACH ROAD
The Palm Beach Road runs alongside the
mangroves on the western coast of this zone.
Stretching from Vashi to Belapur this stretch is
widely referred to as the Marine Drive of Navi
Mumbai and boasts of the most expensive
properties in the zone. It is a supplementary link
to the Thane-Belapur Road and connects
residential markets like Vashi, Sanpada, Nerul
and Belapur. The road is developing as a hub for
organized retail developments.
VASHI BRIDGE
The 6-lane Vashi Bridge also referred to as the
Sion- Panvel Expressway is a major inter-zone
link. Providing East-West connectivity within the
MMR, this road connects Navi Mumbai zone at
Vashi with the central zone at Mankhurd. At
prcscnl lhs nN s lhc rsl cnlry pRnl and asR
the shortest road network from the island city
zone to the Navi Mumbai zone.
AIROLI BRIDGE
The Airoli Bridge serves as the inter-zone
connector by connecting the Navi Mumbai zone
with the central zone. It links the Eastern
expressway at Mulund in the Central zone with
the Thane-Belapur Road at Airoli in the Navi
Mumbai zone.
SUBURBAN TRAIN NETWORK
The zone has a decent inter and intra zone
connectivity by the suburban rail network. The
suburban train network connects the zone with
island city i.e. the CBD locations of Nariman
Point, Fort and Colaba and also the central zone
in Thane. Running parallel to the crucial Thane-
capur kRad l cRnnccls lhc majRr Rcc spacc
locations like Airoli, Rabale, Turbhe, Jui Nagar
and CBD Belapur.
Vashi Bridge and Airoli
Bridge provide the inter
zone connectivity to Navi
Mumbai
INVESTMENT
advisory REPORT
locations of Nariman Point, Fort, and Colaba. The
nanca Icasbly has bccn cRncudcd. Thc
aulhRrly has shRrlslcd cRnlraclRrs sR lhal
lhc wRrN can bc cRmmssRncd by 2013.
NAVI MUMBAI INTERNATIONAL
AIRPORT (NMIA)
Ar lrac n lhc 00k s cxpcclcd lR ncrcasng
IrRm 29 mn. passcngcrs n 2010-11 lR an
cslmalcd 119 mn. n 2030-31, whch cannRl bc
handcd by lhc cxslng arpRrl n lhc wcslcrn
zRnc. Paucly RI and IRr Iurlhcr cxpansRn n lhc
cxslng arpRrl has pavcd way IRr lhc sccRnd
nlcrnalRna arpRrl RI 00k lhal w cRmc up n
lhc 1av 0umba zRnc. Ths upcRmng
nlcrnalRna arpRrl, LnvrRnmcnla Ccarancc IRr
whch has arcady bccn sccurcd, s cxpcclcd lR
wlncss ls Phasc l lR bc RpcralRna by 2015.
csdcs prRvdng a bRRsl lR lhc ccRnRmy RI 1av
0umba zRnc wlh a hRsl RI cRmmcrca aclvlcs
n lhc acd nduslry, l w ncrcasc lhc
allraclvcncss RI Rcc and rcsdcnla prRpcrlcs
in the zone.
LmpRymcnl lndcalRrs n
1av 0umba
Thc zRnc has lhc prcscncc RI manuIaclurng
aclvly n lhc slalc Rwncd nduslra cslalcs.
0l0C arcas n 0ahapc aRng lhc Thanc- capur
kRad and TaRja havc lhc prcscncc RI scvcra
sma and mcdum cnlcrprscs (S0Ls). TaRja has
lhc prcscncc RI cRmpancs Nc Lxdc allcrcs,
Asan Panls and Asah 6ass. hRwcvcr, wlh lhc
grRwlh RI lhc cly, lhc nduslra and s gvng
way lR mRrc ccRnRmcay Icasbc, cRmmcrca
Rcc and rcsdcnla dcvcRpmcnl. ln lhc
IRrcsccabc Iulurc wc cxpccl lhc scrvcc nduslry
prmary lT]lTcS lR dRmnalc lhc ccRnRmc
andscapc RI lhc zRnc.
wlhn lhc zRnc, mRsl RI lhc cmpRymcnl
gcncralRn s Rn lhc 20 Nm. slrclch RI lhc Thanc-
capur rRad. LRcalRns Nc ArR, kabac,
0ahapc lRwards lhc nRrlh and vash, Turbhc, }u
1agar and capur lRwards lhc sRulh arc
prRmsng Rcc spacc RcalRns whcrc ampc
cmpRymcnl RppRrlunlcs arc avaabc.
Currcnly lhc zRnc has 18 mn.sq.Il. Rcc spacc RI
whch abRul 13.58 mn.sq.Il. s Rccupcd. wc
cxpccl an cncRuragng grRwlh n lhc
dcvcRpmcnl RI Rcc spacc IRr lhc ncxl vc
ycars unl 2017. whc lhc Rcc spacc slRcN w
ncrcasc by 80%, lhc Rccupcd Rcc spacc w
gR up by a slcar 105% by 2017 as lhc vacancy
ralc w cRmc dRwn IrRm lhc currcnl cvc RI 2/%
lR 6%. wc anlcpalc lhal lhc cmpRymcnl
gcncralRn happcnng n lhc scrvcc nduslry w
Iccd lhc grRwlh RI rcsdcnla marNcls n lhc
zone.
NAVI MUMBAI OFFICE
SPACE DYNAMICS
2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E 2017E
SlRcN
2ccupcd SlRcN
10
5
15
20
25
30
The increase of air
passenger 1KDL IKom the
current 29 mn. passengers
to 119 mn. in 2030-31 will be
supported by the city's
second international
airport coming up in Navi
Mumbai
The occupied RLI V1ock
in Navi Mumbai will
increase by 105% in
the next 5 years
As industrial land gives
way to more lucrative
RLI IIVIOopments,
IT/ITeS industry will
dominate the economic
landscape of Navi Mumbai
INVESTMENT
advisory REPORT
DESTINATION
ULWE
Ulwe is a residential market located to the south
of the Panvel creek. CIDCO, the planning authority
of Navi Mumbai, has acquired land from the
villagers and other private land owners and is
developing this location as per its city
development plan. Hence, it is not yet an
established residential destination. Developers
started taking keen interest in this locality only in
2009. Since 2009, Ulwe has witnessed a launch
of 6,606 residential units and almost 83% of these
were launched between 2010 and 2011. Due to the
initial euphoria associated with the investor
community, the projects also witnessed healthy
sales. However, the rate of sale has subsided now
2009 2010
7,000
6,000
5,000
4,000
3,000
2,000
1,000
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF ULWE
2011
2012*
23%
27%
12%
5%
on account of low end user interest, because of
lack of mass rapid transport connectivity. The rate
of unsold inventory climbed to 27% as on Q3
2012 and taking cognizance of the state of
market, the developers have reduced the new
aunchcs sgncanly.
At present, Ulwe is connected with the important
Thane-Belapur Road through the Uran Road,
which also connects it with the JNPT Road that
goes towards the Jawaharlal Nehru Port (Nhava
Shcva).C0 capur, lhc Cl0C2 nRlcd Rcc
micro-market, is just 7 km. from Ulwe enroute this
uran kRad. csdcs, C0 capur, vc Rlhcr
RESIDENTIAL LAUNCHES IN ULWE
2012* 2009 2010 2011
700
130
230
2,675
2,256
ULWE PRICE FORECAST
2012
Ulwe Vashi
`10,000
2017E
`9,800
`15,802
`4,000
Of the 6,606 residential
units launched in Ulwe
since 2009, 4,805units
are already sold
At present, lack of mass
rapid connectivity is a
concern. However, the
under construction
suburaban rail network
will address it by 2015
l^VI'1Î^1
IVl'LKYKIILK1
ULWE PRICE FORECAST
18,000
16,000
1/,000
12,000
10,000
8,000
6,000
/,000
2,000
2UU'
60%
38%
Vash Uwc DsccunlMargn
prcmncnlcffccccalcnswlhnlhczcncarcal
amaxmumdslancccfjusl22km.Gcng
fcrward,lhcundcrccnslruclcn27km.Icru-
Scawccd-UranrancwccnncclUwcwlhlhc
suburbanranclwcrk.Thswhappcnlhrcugha
rawayslalcncacdamandcngrwhchs
cxpcclcdlcbccpcralcnaby2015.Oncclhs
ccnncclvlysnpacc,Uwcwbcccnncclcd
wlhalhcscmajcrcffccmarkclslhcughlhc
massrapdlranspcrlsyslcm.
Thcpannngcflhsdcslnalcnsundcrlakcnby
ClDCOandhcnccalhcughlhcrcsadcarlhcf
sccanfraslruclurcalprcscnl,lhcsamcwbc
addrcsscdlhrcughlhcauclcncfcarmarkcd
pclsfcrhcsplas,schccsandclhcrrcacslalc
dcvccpmcnls.PrcxmlylclhcIavMumba
lnlcrnalcnaArpcrl(IMlA)whcpUwccn
acccunlcflhcccrcaryccmmcrcaaclvlcs.
Tcwardslhcsculhcflhcnlcrnalcnaarpcrlwas
lhcpanncdIavMumbaSpccaEccncmcZcnc
(IMSEZ).AlhcughpansfcrlhcSEZhavcbccn
shcvcd,wccxpcclargcscacccmmcrca
dcvccpmcnlslcccmcupcnlhsandparcclhal
wmmcnscybcncflUwc.IavMumbaZcnc
hascmcrgcdasascf-suslanngzcnc,hcwcvcr,
lhcccnncclvlywlhlhcsandlhrcughlhc
prcpcscdMumbaTransHarbcurLnk(MTHL)w
ncrcasclhcallraclvcncsscflhsdcslnalcn.
Onccccmpclcd,lhcMTHLwbclhcmcsl
sgnfcanlnkbclwccnsandclyzcncandIav
MumbanScwrandIhavarcspcclvcy.
Alprcscnl,Vashslhccslabshcdrcsdcnla
mcrc-markclnlhczcncwlhprccsavcragngal
`10,000/sq.fl.Hcwcvcr,lhcprccnUwcs
arcund`/,000/sq.fl.,whchsa60%dsccunl.
ascdcncurnvcslmcnlralcnacasdscusscd
abcvcwccxpccllhsdsccunllcnarrcwdcwnlc
38%by2017.
2U1U 2U11 2U12 2U1I 2U14I 2U1I 2U16I 2U11I
IIK1ILI'LLlI
lÎK'1KIL1IKIl'
LL^LIK^.HL\IVIK,
II^ÎIIIVIILIÎ^1\lII
IIKI''1II'Îl^1II
ILKI'IIBIIII1IKI
UI\I\lIIBIÎIl1L^
LLLI^1LI1IILLKLIIKY
LL^ÎKLlILlVl1YKl'l^L
IKL^1IIIILL^l^L
l^1IK^1lLÎlKILK1Î
1II'IZIÎ
1IIIl'LLI^1IL1LKLI
KI'lII^1lILIl1IVIII'
lÛI\Il^LLÎKl'L^1L
V'Il\lIIKIIILI1Lo%BY
2U11
Ulwe has access to the
zone's 5 major RLI
markets within a distance
of 22 km.
INVESTMENT
advisory REPORT
* By road
Distance
22
km
18
km
16
km
15
km
7
km
11
km
ROL I I A
HA A PE M
R E A L BA VA I SH
RBH U E
T
C
B R
D U
P B A EL
Investment Options in Ulwe
SELECT PROJECTS
Units Date Date
Vighnaharta Shree
Complex Siddhivinayak 126 Sep-11 Mar-14
Palacio Platinum 122 Jan-11 Nov-13
Group
Neelsiddhi Neelsidhi 120 Feb-12 Dec-13
Joya Group
Swaraj Swaraj 164 Dec-10 Jul-14
Kingston Builders
1600 - 1850 6.9 - 8.7
880 - 1224 3.6 - 5.8
3BHK
2BHK
2.0 - 2.9 1BHK
500 - 700
The RLI PDKNI1 of CBD
Belapur is at a distance of
just 7 km.
Ulwe residential property
is forecasted to
appreciate by 145%
over the next 5 years
units launched in Chembur
since 2007, 2,625 units
are sold
INVESTMENT
advisory REPORT
DESTINATION
CHEMBUR
Chembur is a residential destination in the central
zone of the MMR. The stretch towards the south of
Chembur railway station up to Collectors Colony
is the most sought after residential catchment.
Going further south of the Collectors Colony, the
micro-market has the presence of industrial
activity notable amongst which is Rashtriya
Chemicals and Fertilizers and Bharat Petroleum
kcncry. Thc Laslcrn Lxprcssway s lhc mRsl
sgncanl prRjccl lhal cRnnccls lhc rcgRn wlh
island city zone and other regions of the central
zone.
2007 2008
3500
3000
2500
2000
1500
1000
500
N
o
.

o
f

U
n
i
t
s
CHEMBUR RESIDENTIAL MARKET
2010
2012*
24%
25%
19%
Since 2007, Chembur has witnessed the launch
of 3,518 residential units, out of which almost
75% or 2,625 units have been sold. 2010 was an
cxccplRnay gRRd pcrRd IRr lhc rcsdcnla
property market for this destination. However,
due to the slowdown in the overall Mumbai
market, the inventory level in Chembur climbed
up to 25% in Q3 2012. Taking cue from the
changed consumer appetite, many developers
havc rcIrancd IrRm aunchng ncw prRjccls lhs
year.
CHEMBUR RESIDENTIAL LAUNCHES
2012* 2009 2010 2011
360
125
1,601
210
CHEMBUR PRICE FORECAST
2012
Chembur Prabhadevi
`36,000
2017E
`27,000
`55,459
`12,000
2009 2011
0%
3%
4%
377
2008 2007
On account of its
startegic location in the
MMR, overall growth of
employment in the city will
drive the residential
market of Chembur
845
The Eastern Freeway
project and the Santacruz
Chembur Link Road will
VLL^LLD^1Oy enhance the
connectivity of Chembur
with island city and
western zone respectively
INVESTMENT
advisory REPORT
CHEMBUR PRICE FORECAST
60,000
54,000
48,000
42,000
36,000
30,000
24,000
18,000
12,000
6,000
2009
Prabhadevi Chembur Discount Margin
Being strategically located within the central
zone, Chembur is not only connected with the
majRr Rcc marNcls RI lhc ccnlra zRnc bul asR
the island city zone, western zone and Navi
0umba zRnc. hcncc, lhc Rvcra grRwlh RI
cmpRymcnl n lhc 00k w Iccd lhc rcsdcnla
marNcl RI lhs dcslnalRn. 0uc lR ls prRxmly lR
lhc rcvcrcd Rcc marNcl RI lhc andra Kura
CRmpcx (KC) and ncrcasng cRnccnlralRn RI
Rcc dcvcRpmcnls n lhc ccnlra zRnc, wc
cxpccl lhc allraclvcncss RI rcsdcnla prRpcrly
n lhs dcslnalRn lR gR up n Iulurc. Al prcscnl,
the destination has connectivity through the
Laslcrn Lxprcssway, whch cRnnccls l wlh lhc
prRmncnl Rcc spacc RcalRns n lhc ccnlra
zone. Besides, the mass rapid connectivity is
provided by the suburban rail network that
cRnnccls l wlh lhc C0 RcalRns RI FRrl and
Nariman Point through Mumbai CST.
6Rng IRrward, scac RI upcRmng nIraslruclurc
prRjccls w sgncanly bRRsl lhc cRnncclvly
RI Chcmbur n lhc IRrcsccabc Iulurc. Thc Laslcrn
Freeway Project is one important project that will
nN Chcmbur wlh lhc C0 RI SRulh 0umba. Ths
nN, runnng parac lR lhc Laslcrn Lxprcssway,
s n advanccd slagcs RI cRnslruclRn and sha
be operational by H2 2013.
The Santacruz Chembur Link Road is another
pvRla nIraslruclurc prRjccl lhal w cRnnccl
Chembur with the western zone. This 6.45 km.
rRad w slarl al Amar 0aha }unclRn n Chcmbur
and end up to Santacruz East thereby becoming a
cRnncclng nN bclwccn lhc Laslcrn Lxprcssway
and lhc wcslcrn Lxprcssway. Ths nN w
sgncanly rcducc lhc lravc lmc IrRm Chcmbur
to the western zone when it is ready in 2013.
Connectivity through a mass rapid transport
system has a particularly high bearing on the
grRwlh RI rca cslalc dcvcRpmcnl n lhc 00k.
Thc upcRmng 20.2 Nm. Chcmbur -wadaa- }acRb
Crcc mRnRra prRjccl s lhc rsl mRnRra
prRjccl n lhc 00k. Phasc l bcgnnng IrRm
Chembur and terminating at Wadala is in
advanccd slagcs RI cRnslruclRn and cxpcclcd lR
be open to public by early 2013. Phase II will
cRnnccl Chcmbur wlh }acRb Crcc n lhc sand
city zone via Wadala. This project will directly link
Chcmbur wlh lhc Rcc marNcl RI LRwcr Parc.
Thc 0clrR ka Phasc ll (CharNRp - andra-
0anNhurd) w Iurlhcr cnhancc lhc cRnncclvly
2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2008 2007
67%
51%
The Chembur-Wadala phase
of monorail project is in
an advanced stage of
construction and is
expected to be
operational by early 2013
INVESTMENT
advisory REPORT
* By road
Distance
Investment Options in Chembur
SELECT PROJECTS
of Chembur with the western zone. Work has been
awarded to the contractor but is lagging behind
schedule. While the project is unlikely to be
cRmpclc n Rur IRrccasl hRrzRn RI vc ycars, l
will have a positive impact on prices during this
period.
Al prcscnl, Prabhadcv s an cslabshcd
residential market commanding an average price
of `36,000]sq.Il. Al an avcragc RI `12,000]sq.Il.
Chembur residential property sells at a 67%
discount. Based on our investment rationale
dscusscd abRvc, wc IRrccasl lhs dscRunl lR
narrRw dRwn lR 51% by 2017.
A C L O R M
U P
K L
E A
X R
D (
B
N
K
A
C
B
)
D
A V
I O K
R H
R S
O B LI- L
UR K L - A I
R R
E O
H
A
D D
N
A
L
O L
E W R E A R P
SH A I V
I W L OR
AN P M O I
I R N
A T
N
7
km
8
km
10
km
12
km
13
km
18
km
22
km
1600 - 1750 16 - 19.3 4BHK
1350 - 1700 12.8 - 18.7
1000 - 1150 9.5 - 11.5
5.4 - 7.6
600 - 760
3BHK
2BHK
1BHK
Units Date Date
Views Dheeraj 308 0ay-10 Jun-14
Group
Brizo Red Brick 132 0cc-10 Dec-14
Residency
Mangal 0anga 0RRrl 250 }an-10 Dec-14
Moorti Developer
Akshay Akshay 70 Jun-11 Oct-14
Paradise Corporation
Aparlmcnl Szc n sq.Il. Ticket Size in ` mn.
Limited land availability
will limit the scope of new
construction in Chembur
Prominent RLI PDKNI1V
of BKC and Lower Parel are
located within a distance
of I2 NP. IKom Chembur
Residential property in
Chembur would appreciate
by 125% over the next
5 years
INVESTMENT
advisory REPORT
DESTINATION
WADALA
Wadala is a residential market in the
central zone. Eastern expressway is the
arterial road that connects Wadala with other
regions of the central zone and also the CBD
in the island city zone. The destination is also
connected by the suburban train network through
the Wadala station. It is surrounded by dense
residential developments on the south, north
and western side by Parel-Sewri, Matunga and
Dadar respectively. Arabian Sea on the eastern
side restricts any further real estate development
2007 2008
2000
1500
1000
500
N
o
.

o
f

U
n
i
t
s
WADALA RESIDENTIAL MARKET
2010
2012*
56%
here.The destination witnessed very limited supply,
of just 167 residential units, between 2007 and
2009. However, the consumer perception about
the location started improving in 2010 and
2011.During this period almost 1,704 units were
launched, many of them being positioned at the
high end market. These projects also witnessed
healthy absorption at the very initial stage of the
launch. At present, the destination has an unsold
inventory of 56%, which is at a nascent stage of
construction.
WADALA RESIDENTIAL LAUNCHES
2012* 2009 2010 2011
72
313
WADALA PRICE FORECAST
2012
Wadala Prabhadevi
`36,000
2017E
`35,000
`55,459
`15,000
2009 2011
95
1,387
2008 2007
3%
41% 41%
46%
56%
units launched in Wadala
since 2007, 1,387 units were
launched in 2011 alone
Being strategically
located, Wadala will
EIÎ1 from its
connectivity with
employment hubs across
the MMR
With a slew of launches in
the premium segment, the
perception of Wadala as a
residential market has
VLL^LLD^1Oy improved
INVESTMENT
advisory REPORT
WADALA PRICE FORECAST
60,000
54,000
48,000
42,000
36,000
30,000
24,000
18,000
12,000
6,000
2009
Prabhadevi Wadala Discount Margin
The most important proposition of the Wadala
residential market is its strategic location in the
MMR. Located to the south of the central zone,
this destination is at a comfortable commuting
distance from the employment centres of the
island city zone, central zone, western zone as
well as Navi Mumbai. On account of this strategic
RcalRn, lhc Rvcra grRwlh n lhc 00k Rcc
market will have a bearing on this destination.
Besides, the proximity of 8 km. and 10 km. from
prRmncnl Rcc marNcls RI KC and wRr
respectively, make it a sought after residential
catchment. As a result, new launches in the last
two years have been positioned at the high end
segment of consumers. This happened because
wadaa Rcrs argc and parccs lR dcvcRp
rcsdcnla prRjccls wlh sNy scrapcrs Rcrng
ultra-modern amenities. This provision enables
the destination to provide a lifestyle shift and
command a premium price for the residential
property in comparison to the surrounding micro-
markets.
At present, the arterial Eastern expressway
cRnnccls lhs dcslnalRn wlh lhc C0 RI
1arman PRnl, FRrl and CRaba. Thc suburban
train network connects the destination with
0umba CST n lhc sand cly zRnc, Andhcr n
lhc wcslcrn zRnc and vash and C0 capur n
the Navi Mumbai zone. This strategic location
along with established road and suburban train
cRnncclvly wlh lhc mpRrlanl Rcc marNcls n
each zone make Wadala a promising residential
market.
0urng lhc ncxl vc ycars (2013-2017), lwR majRr
infrastructure projects will alter the residential
landscape of this destination. The Eastern
Freeway Project, which is in advanced stages of
construction and is expected to be operational by
2013, will immensely improve the road
cRnncclvly wlh lhc C0 n lhc sand cly zRnc.
Additionally, the mass rapid connectivity through
a convenient and modern means of transport will
be provided by the upcoming monorail project.
Thc 20.2 Nm. Chcmbur -wadaa- }acRb Crcc
monorail project will connect Wadala with the
upcRmng Rcc dcvcRpmcnls n Ccnlra 0umba
namely Lower Parel. While Phase I connecting
Chcmbur wlh wadaa w bc rcady by 2013, lhc
wRrN IRr Phasc ll, cRnncclng wadaa wlh }acRb
Crcc, s ycl lR bc cRmmssRncd.
2010 2011 2013E 2014E 2015E 2016E 2017E 2008 2007
37%
58%
2012
Wadala residential market
will EIÎ1 due to its
connectivity with the
premium RLI PDKNI1 of
Bandra Kurla Complex (BKC)
The region development
authority's intention of
developing Wadala in a
similar manner as BKC will
further increase the
appeal of this destination
Going forward, we expect this destination to
follow the established market of Prabhadevi. In
comparison to Prabhadevi residential property,
the discount has already narrowed down from
70% in 2007 to 58% in 2012.Wadala commands a
price of `15,000/sq.ft., which is a 58% discount
to Prabhadevi that commands an average price of
`36,000/sq.ft. Based on our investment rationale
lhs dscRunl w narrRw dRwn n lhc ncxl vc
years (2013-2017) and come down to 37% by 2017.
* By road
Distance Travel time
Investment Options in Wadala
INVESTMENT TICKET SIZE SELECT PROJECTS
Units Date Date
Dosti Dosti Group 288 Nov-10 Sep-14
Ambrosia
1HZ&XH Lodha Group 900 Oct-11 Nov-15
Parade
Vishwachand R.K. 100 May-11 Dec-13
Sky Developers
Zeon Ajmera 164 Sep-11 Dec-15
5
km
8
km
10
km
13
km
15
km
18
km
21
km
1950 - 2700 28.3 - 45.9 4BHK
1500 - 1900 22.5 - 30.4
1260 -1520 18.3 - 25.1
3BHK
2BHK
INVESTMENT
advisory REPORT
B X
E A
L
N
P
D
M R
A O
C KU A RL
ORLI W
N T
A N I R
I O M P AN
- KU I R R
E L
A H
D R
N O
A A
D
D
A V
I O
K R
H
S R B O L LI-
SHI A
V
ER P W A O R L
E
L
Wadala has the potential
to provide a lifestyle
shift, which is possible in
projects developed on
large land parcels that
facilitate high rise premium
developments with plush
amenities
Wadala residential
property shall appreciate
by 133% during the
next 5 years
INVESTMENT
advisory REPORT
HIDDEN GEM
Ranjanpada
Ranjanpada is a locality in the Navi Mumbai Zone.
With absolutely no mass rapid transport, the
region has extremely poor inter zone connectivity.
The JNPT Road is the only connectivity of
Ranjapada with important regions in Navi
Mumbai. Currently, the only driver for the real
estate development in this destination is the port
related activity in the Jawaharlal Nehru Port Trust
(JNPT).
The destination is at a distance of approx. 15 km,
22 Nm and 28 Nm IrRm prRmncnl Rcc marNcls
of CBD Belapur, Vashi and Airoli respectively.
Although these employment centers are at a
comfortable distance, the connectivity is a
drawback both in terms of the mode of commute
and the transit time. Ranjanpada only has a road
connectivity to CBD Belapur, beyond which the
suburban train connectivity is available. On
accRunl RI cRnlancr lrac IrRm }1PT, lhc lrac
on the Uran Road, which connects Ranjanpada to
Belapur, remains high. Beyond Belapur, the
destination is connected to Vashi through the
Palm Beach Road and the Thane-Belapur Road
and alternatively by the suburban train network.
However, the under construction rail project on
Nerul-Seawood-Uran line will move the scale in
LOCATIONS
* By road
Distance
OL R I I
A
V I ASH
EL B A
D P
U B
R C
28
km
22
km
15
km
favour of this location. Being a mass rapid mode
of transport this suburban train link will reduce
transit time and provide last mile connectivity to
this destination. The attractiveness of residential
market is expected to increase with this
cnhanccd cRnncclvly wlh lhc mpRrlanl Rcc
markets in the Navi Mumbai zone. This project is
expected to be complete by 2016.
Additionally, the Mumbai Trans Harbour Link
(MTHL) project will be a game changer project for
this destination. This project will radically change
the road connectivity and bring a drastic
reduction in travel time between Ranjanpada and
the Island city zone. At present, the shortest road
connectivity between this destination and
Mumbai is through the Vashi Bridge (Sion Panvel
Highway). The destination will be amongst the
bggcsl bcnccarcs Rn accRunl RI lhs
connectivity with the CBD locations of Nariman
PRnl, FRrl, CRaba. Thc nanca Icasbly has
been concluded. The authortiy has shortlisted
contractors so that the work can be commissioned
by 2013.
* By road
Current Distance in km.
Road Distance post MTHL in km.
55
km
40
mins
45
km
38
mins
N A P
M O
I
I
R N
A T
N
R P E A
W R
E O
L L
LOCATIONS
The Mumbai Trans Harbour
Link (MTHL) will
VLL^LLD^1Oy improve 1II
LonneL1LVL1Y of
Ranjanpada \L1I 1II
revered island LL1Y
Suburban 1KDL^
LonneL1LVL1Y will
IV1ablish Ranjanpada as a
KIVLII^1LDO PDKNI1 in 1II
nex1 4 years
l^VI'1Î^1
IVl'LKYKIILK1
5.05 /.0% 3.76 3.0%
PUNE METROPOLITAN REGION POPULATION
Source: Ccnsus2011,KnghlFrankkcscarch
Pcpualcn AvcragcAnnuaGrcwlh
2./9 /.0%
1''1 2UU1 2U11
Punc,ascrcfcrrcdlcaslhcOxfcrdcflndaduclclhcprcscncccf
numcrcuscducalcnansllulcs,slhcscvcnlhmcslpcpucusclynlnda
andlhcscccndargcslclynMaharashlra.Puncsurbanaggcmcralcn,
asckncwnaslhcPuncMclrcpclankcgcn(PMk),ssprcadcvcr1,3/0
sq.km.andccnsslscfPuncMuncpaCcrpcralcn(PMC),Pmpr
ChnchwadMuncpaCcrpcralcn(PCMC),PuncCanlcnmcnlandKhadk
Canlcnmcnl.AspcrCcnsus2011,lhclclapcpualcncfPMkwas5.05mn.
DcvccpmcnlcflhcPMksundcrlakcnbyvarcusagcnccssuchaslhc
PMC,PCMC,PubcWcrksDcparlmcnl(PWD)andclhcrs.Abscncccfa
sngcpannngaulhcrlyfcrlhcmclrcpclanrcgcnhascdlcan
ncrdnalcdcaynlhccxcculcncfvarcusnfraslruclurcprcjccls.Alhcugh
lhcdcalcscluplhcPuncMclrcpclankcgcnaDcvccpmcnlAulhcrly
(PMkDA)wasfrslnlalcdn2008,lsslallhcprcpcsaslagc.
IUÎ
Major Roads
Railway Line
Proposed Metro Corridor I
Proposed Metro Corridor II
South Zone
West Zone
Central Zone
East Zone
North Zone
PUNE MAP
INVESTMENT
advisory REPORT
Pune Metropolitan Region
is spread over
1,340 sq.km. and has a
population of 5.05 mn.
Market
Overview
DESTINATIONS
North Pimpri, Chinchwad, Nigdi, Moshi,
Dighi
Central Bund Garden Road, Koregaon
Park, Deccan, Model Colony,
Kothrud, Swargate
South Warje, Katraj, Kondhwa, NIBM
Road, Undri
East Kalyani Nagar, Yerwada, Viman
Nagar, Kharadi, Wagholi Road,
Hadapsar
West Aundh, Baner, Pashan, Bavdhan,
Wakad, Hinjewadi, Ravet
Punc s dvdcd nlR vc brRad zRncs: Ccnlra,
North, West, South and East.
North Pune is primarily an industrial area with
various Auto & Auto Ancillary and Engineering
industries located here. The twin towns of Pimpri
and Chinchwad are host to some of Indias
leading auto companies manufacturing plants
such as Bajaj Auto, Tata Motors, Force Motors and
DaimlerChrysler. Additionally, engineering majors
Nc Thcrmax, FRrbcs-0arsha, ThysscnKrupp and
AIa Lava asR havc lhcr manuIaclurng basc
hcrc. hslRrcay, 1Rrlh Punc has bccn a scI-
succnl zRnc wlh lhc rcsdcnla marNcl
lhrvng Rn lhc cmpRymcnl gcncralcd by lhc
manufacturing sector. Pimpri, Chinchwad, Nigdi
and Moshi are some of the prominent residential
destinations here.
Central Pune is the commercial heart of the city
wlh varRus cRrpRralc Rccs Rcalcd n lhc
Central Business District (CBD) areas of Bund
Garden Road, M.G Road, Deccan and Shivaji
Nagar. Good physical and social infrastructure,
prcscncc RI Rrganzcd rcla, cxcccnl
connectivity with various parts of the city and
mlcd avaably RI vacanl and havc cnsurcd
the highest property prices in this part of the city.
Destinations such as Koregaon Park, D.P Road,
Model Colony and Kothrud are some of the
primary residential areas here.
Over the years South Pune has emerged as a
chcapcr alcrnalc rcsdcnla zRnc cRmparcd lR
Central Pune. People preferring to reside in
prRxmly lR lhc cly ccnlrc bul unabc lR aRrd a
hRusc lhcrc, IavRr lhcsc RcalRns. Abscncc RI
any sgncanl cmpRymcnl RppRrlunlcs has
rcslrclcd lhc grRwlh RI lhs zRnc as cRmparcd lR
Rlhcr zRncs. Kalraj, KRndhwa, 1l0 kRad and
Warje are some of the major residential
destinations here.
Largc numbcr RI lT]lTcS Rccs, rRbusl physca
and sRca nIraslruclurc, cslabshcd Rrganzcd
retail market, presence of the Pune airport and
proximity to the city centre have resulted in East
Pune emerging as the most preferred residential
zRnc n lhc asl lcn ycars. 0cvcRpmcnl RI
0agarpalla Cly as a scI-suslanng nlcgralcd
township and setting up of EON IT Park have
Iurlhcr bRRslcd lhc rcsdcnla marNcl hcrc.
However, the emergence of Hinjewadi in West
Punc as an alcrnalc lT]lTcS dcslnalRn has bccn
gvng a lRugh cRmpcllRn lR lhc Rccs Rcalcd
hcrc. A Rl RI buc chp lT]lTcS cRmpancs prcIcr
hnjcwad Rvcr Lasl Punc duc lR lhc avaably RI
vasl vacanl and Rn whch bul-lR-sul Rccs can
bc cRnslruclcd IRr caplvc usc. AlhRugh Lasl
Punc cRnlnucs lR allracl sma and md-szcd
lT]lTcS cRmpancs, mRsl RI lhc argcr paycrs arc
setting up campuses in West Pune.
2007 2008 2012* 2009 2010 2011
RESIDENTIAL LAUNCH TREND
IN PUNE
INVESTMENT
advisory REPORT
42,637
33,104
20,433
38,809
40,452
24,866
Development of
Hinjewadi as an
IT/ITeS destination has led
to an unprecedented
growth of the western
part
Since 2007, the city has
witnessed the launch of
200,301 units of
which 154,874 units
have been absorbed till
Q3 2012
2008 2009 2010
200,000
160,000
120,000
80,000
40,000
N
o
.

o
f

U
n
i
t
s
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF PUNE
2011 2012*
Development of Hinjewadi as an IT/ITeS
destination has led to an unprecedented growth
of the western part of the city in the last ten years.
Residential locations that are in close proximity
to Hinjewadi such as Aundh, Baner, Pashan and
waNad havc mmcnscy bcnclcd IrRm lhc argc
number of IT/ITeS jobs created here. Availability
RI argc lracls RI vacanl and al aRrdabc prccs
and excellent road connectivity with the city
centre has led to the rapid development of this
zone.
Emergence of the IT/ITeS sector along with the
setting up of various manufacturing units in Pune
over the last decade has resulted in the citys real
estate market expanding in all four directions.
Since 2007, the city has witnessed the launch of
more than 200,301 units of which 154,874 units
have been absorbed till Q3 2012, resulting in
23% remaining unsold. The percentage of unsold
units has witnessed an uptrend in the last few
years. It has increased from 9% in 2009 to 23% in
Q3 2012 as the absorption rate has not been
able to match the pace of new launches. The
period witnessed the launch of 124,561 units, of
which only 86,854 units were absorbed.
Central North West South
CONSTRUCTION UNITS
INVESTMENT
advisory REPORT
2007
East
33% 28%
19%
18%
2%
8%
10%
9%
13%
20%
23%
33%and 28%of the
under construction units
are located in West and
East Pune respectively
KIII'11IIKlVIK'
lnfraslruclurcDcvccpmcnl
Old Mumbai-
Pune Highway vaPmprChnchwad CcnlraPunc
Mumbai-Pune
Bypass Road (NH-4) Mumba-PuncExprcsswayandPmpr
ChnchwadnlhcIcrlh andPunc-angacrcHghwaynlhcSculh
Pune Nashik
Highway (NH-50) lhcIcrlhvaChakan Mcshwlhlhcclyccnlcr
Pune Solapur
Highway (NH-9) lcwardsScapurnlhcEasl EaslPuncfrcmlhcclyccnlrc
SlarlsalShvajIagarlcwardsMumba AvlarcadccnncclngPmprChnchwadwlh
CcnncclsKalrajnlhcSculhPuncwlh PrcvdcsscamcssccnncclvlywlhHnjcwad
nWcsl,Mumba-PuncExprcsswaynIcrlh
SlarlsalKasarwadlcwardsIashkn CcnncclsIcrlhPuncmarkclskchcsarand
SlarlsfrcmCampnlhcclyccnlrc PrcvdcscasyccnncclvlywlhHadapsarn
l^VI'1Î^1
IVl'LKYKIILK1
Service Sector
lT/lTcSScclcr
Aulc&AulcAncarcs
Engnccrng
Rail Network
PuncMclrckaCcrrdcrl&ll
kngkcad
Road Network
STATUS COMPLETION
Outer Ring
Road I (IH-9)-Waghc-
nIcrlhPunc
Outer Ring
Road II (IH-50)-IH-/-
Prangul adclacdprcjccl
Outer Ring
Road III Snhagad-Punc-
Outer Ring
Road IV ThcurPhala
(IH-9)
ThcurPhala Thsrcadwprcvdcdrccl Fcasblysludy 2017-18
ccnncclvlybclwccnIH-9n andprcparalcncf
Chmb(IH-50) EaslPuncandIH-50 adclacdprcjccl
rcpcrl
ChmbaPhala EasyacccssbclwccnIcrlhand Fcasblysludy 2017-18
WcslPunc andprcparalcncf
rcpcrl
Prangul- WccnncclWcslPuncwlh Fcasblysludy Pcsl2018
SnhagadandPunc-angacrc andprcparalcncf
angacrc HghwaynSculhPunc adclacdprcjccl
Hghway(IH-/) rcpcrl
Kalraj(IH-/)- WdrcclyccnncclIH-/nlhc Fcasblysludy Pcsl2018
SculhandIH-9nEaslPunc andprcparalcncf
adclacdprcjccl
rcpcrl
l1/l1I',I1L
Î
I^LlÎIKl^L
'IL1LK'KI1II
IKl^KYIÎILYÎ^1
IKlVIK'
IIÎl'LL^ÎL1II
1IKLILI4^JLKK1IKlI
KLI'
Proximity to Mumbai has always been a positive
factor for Pune and has enabled it to attract
investments from various companies to set up
their manufacturing plants here. Auto & Auto
Ancillary and Engineering sectors are the largest
employers among the various manufacturing
industries present in Pune. The emergence of
Chakan and Ranjangaon as the new
manufacturing hubs in the periphery of Pune has
led to the setting up of plants by companies such
as Volkswagen, Mahindra & Mahindra, Fiat and
Apollo Tyres.
Going forward, we expect the Auto & Auto
Ancillary sector to be one of the driving factors for
Punes growth. We forecast the output of
Maharashtras Auto & Auto Ancillary industry to
grow at an annual average rate of 17% over the
ncxl vc ycars. Thc prcscncc RI a argc numbcr RI
manufacturing plants in its vicinity will
mmcnscy bcncl Punc.
INVESTMENT
advisory REPORT
STATUS COMPLETION
Pune Metro
Rail Corridor I Station - Wanaz between East and West Pune detailed technical-
feasibility study
Pune Metro
Rail Corridor II
Ramwadi - Pune w cRnnccl lhc hcavy lrac rRulc Undergoing 2017-18
Pimpri Chinchwad - Will enhance connectivity between Approval stage Post 2018
Shivaji Nagar - North and South Pune
Swargate
Over the years, the IT/ITeS sector has emerged
the largest employer in Pune and reshaped its
real estate market. The setting up of Rajiv Gandhi
Infotech Park in Hinjewadi resulted in companies
such as Infosys, Wipro, TCS and Tech Mahindra
establishing their global delivery centres here.
Currently the IT/ITeS sector accounts for 74% of
lhc lRla Rcc slRcN and lhs sharc s cxpcclcd lR
gR up Iurlhcr as ncw lT]lTcS Rccs bccRmc
operational in the coming years.
Thc Rcc spacc marNcl n lhc cly has wlncsscd
tremendous growth in the last six years with the
lRla Rcc slRcN ncrcasng mRrc lhan lhrcc
times, from 20.4 mn. sq.ft. in 2007 to 64.7 mn.
sq.ft. in Q3 2012. However, the absorption rate
has been slowing down with each passing year.
This has led to a gradual rise in the vacancy level.
The total occupied space as of Q3 2012 stands
at 48.2 mn. sq.ft., resulting in a vacancy level of
26%. The slowdown in the IT/ITeS sector coupled
with high vacancy levels in the existing stock,
26% 74%
OFFICE SPACE STOCK
Central North West South East
46% 32%
14%
5%
3%
Employment Indicators in Pune
Phase I of the metro from
Ramwadi to Wanaz is
expected to be completed
by 2017-18
Currently the IT/ITeS
sector accounts for
74% of the total
RLI V1ock
46%of Pune's RLI
space stock is located in
West Pune
PUNE OFFICE SPACE DYNAMICS
Before
2008
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E
INVESTMENT
advisory REPORT
have compelled many developers to delay the
launch of new supply by 1-2 years.
Considering this, we expect an additional 25.8
mn. sq.Il. RI Rcc spacc lR bccRmc RpcralRna
n lhc ncxl vc ycars laNng lhc lRla slRcN lR 90.5
mn. sq.Il. by lhc cnd RI 2017.
Going forward, we expect the IT/ITeS companies
preference for Pune to remain high due to the
availability of a large talent pool and willingness
of employees to relocate here. This will ensure a
healthy rate of absorption in the coming years
and cvcnluay rcducc lhc vacancy cvcs lR 17%
by lhc cnd RI 2017. wc havc IRrccaslcd an
ncrcmcnla dcmand RI 26.7 mn. sq.Il. n lhc ncxl
vc ycars laNng lhc lRla Rccupcd spacc n lhc
cly lR 7/.9 mn. sq.Il. by 2017.
COST DETAILS
Stamp Duty 5% (hghcr RI agrccmcnl vauc Rr rcady rccNRncr ralc)
Registration 1% uplR a maxmum RI `30,000
Value Added Tax (VAT) 1% Rn agrccmcnl vauc
Service Tax 3% Rn agrccmcnl vauc. Lcvcd Rn undcr cRnslruclRn prRpcrlcs.
STATUTORY COSTS
AND MARKET NORMS
STATUTORY COSTS
NORM DETAILS
Time line for property registration wlhn 15 days RI bRRNng
Re-sale before possession Allowed subject to payment of transfer charges
Loading 30% Rn carpcl arca
Brokerage 1-2% RI prRpcrly vauc
MARKET NORMS
100
90
80
70
60
50
/0
30
20
10
26.7 mn. sq.ft. RLI
spaLI LV IoreLDsted to be
absorbed in the next 5
years
90.5 mn. sq.ft. of RLI
spaLI V1RLN LV IXSIL1II to
be operational by 2017
Pune residential market has historically been an
end-user driven market which has ensured
minimal price volatility. However, 2007 onwards
investor participation has witnessed an
increasing trend with local investors as well as
those from Mumbai buying properties in the
peripheral areas. This is despite the fact that
most of the developers discourage investor
participation by restricting re-sale before
possession.
Employment growth and infrastructure
development will be the primary drivers of the
real estate market in Pune in the coming years.
However, the impact of infrastructure
development will be comparatively low, as most
of the upcoming infrastructure projects are still at
a very nascent stage and will not be operational
before 2018. Growth in employment will be largely
from the IT/ITeS sector followed by the
manufacturing sector.
North Pune, where majority of the existing
manuIaclurng panls arc Rcalcd, w bcncl
from the growth in the Auto & Auto Ancillary
sector. However, the impact of this will be limited
as no new units are being set up here due to the
paucity of large vacant land parcels and high cost
of existing land. The attractiveness of Pimpri
Chinchwad as the manufacturing hub is slowly
fading out, with many companies shifting their
units to alternate cheaper locations. Most of the
new manufacturing plants are coming up along
the periphery of Pune like Chakan and
Ranjangaon which are located 32 km. and 50 km.
away from the city centre respectively. Hence, no
sgncanl bcncl RI ncrcmcnla cmpRymcnl
will be felt on North Pune.
East and West Pune will accrue the maximum
bcncl RI ncrcmcnla cmpRymcnl n Punc, as
mRrc lhan lhrcc-IRurlh RI lhc cxslng Rcc
space stock and 95% of the upcoming stock will
be located here. However, within these two
zones, the West Zone will account for majority of
lhc upcRmng Rcc spacc. whc 16.8 mn.sq.Il.
RI ncrcmcnla Rcc slRcN w bc addcd lR wcsl
ZRnc, lhc Lasl w add Rny 9 mn.sq.Il. ln
addlRn lR lhs, Rccs n Lasl Punc arc sprcad
acrRss dcrcnl dcslnalRns such as hadapsar,
Kharadi, Kalyani Nagar, Magarpatta City and
Nagar Road. This distributes the demand for
residential space evenly across these
PREFERRED
ZONE IN
PUNE
destinations, thereby reducing the preference for
any single location. In contrast to this, more than
80% RI lhc Rccs n wcsl Punc arc Rcalcd n
Hinjewadi. This increases the importance of the
destinations that are located in close proximity to
Hinjewadi.
SRulh Punc w nRl wlncss any sgncanl gan
in the residential market, as it is primarily
dependent on East and West Pune where most of
the employment hubs are located. Additionally,
lhc prccs hcrc arc cquvacnl lR mRsl RI lhc
emerging destinations of East and West Pune
leaving little room for further appreciation.
Similar is the case with Central Pune.
The above mentioned reasons make a compelling
case for the preference of West Pune over other
zones. Although in terms of social infrastructure
West Pune still lags; we expect this gap to be
cd up rapdy n lhc cRmng ycars. A argc
number of educational institutes, organized retail
and entertainment avenues are expected to
bccRmc RpcralRna hcrc n lhc ncxl vc ycars.
INVESTMENT
advisory REPORT
WEST PUNE
Maharashtra governments push to the IT/ITeS
sector by setting up of the Rajiv Gandhi Infotech
Park in Hinjewadi has changed the face of West
Pune. Currently, Phase I, II and III of the park are
operational with campuses of IT/ITeS majors such
as Infosys, Wipro, TCS, Tech Mahindra and
Cognizant present here. Apart from this, various
companies are operating out of the Dlf Akruti IT
SEZ, Blueridge SEZ, Embassy Techzone and
Ascendas International Tech Park which together
accRunl IRr Rvcr 5 mn.sq.Il. RI Rcc slRcN. Pans
for further expansion into Phase IV and V are
undcrway and and acquslRn s arcady n
TREND IN WEST PUNE
2007 2008 2012* 2009 2010 2011
Re-sale before
possession is not allowed
in most of the projects
While 16.8 mn. sq.ft. of
incremental RLI V1ock
will be added to the West
Zone, the East will add
only 9 mn.sq.ft.
The attractiveness of
Pimpri
Chinchwad
as a manufacturing hub is
slowly fading out, with
many companies shifting
their units to alternate
cheaper locations
16,710
10,513
5,865
14,947
13,850
11,150
K
arve R
o
ad
Paud Road
CHIKHALI
PIRANGUT
LAVALE
AUNDH
HINJEWADI
SUS
PIMPRI
CHINCHWAD
DEHUROAD
CANTOMENT
BAVDHAN
PASHAN
BANER
BALEWADI
WAKAD
TATHAWADE
Baner Road
NH
4
NH
4
PIMPRI
RAVET
NH
4
T
o

K
h
a
n
d
a
l
a
Paud Road
M
u
m
b
a
i
-
P
u
n
e
E
x
p
r
e
s
s
w
a
y
CHINCHWAD
Major Roads
Railway Line
Benchmark location
Top destination
Employment Hubs
WEST PUNE MAP
INVESTMENT
advisory REPORT
2007 2008 2009 2010
70,000
60,000
50,000
40,000
30,000
20,000
10,000
N
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RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF WEST PUNE
2011
2012*
INVESTMENT
advisory REPORT
prRccss. 2vcr lhc ncxl vc ycars, hnjcwad s scl
lR bccRmc Rnc RI lhc argcsl Rcc spacc hubs n
lnda, whch w bcncl lhc adjRnng rcsdcnla
markets.
PrcIcrcncc RI cmpRyccs n slayng cRsc lR lhcr
wRrN pacc and aRrdabc prcng as cRmparcd lR
Ccnlra Punc w drvc lhc dcmand IRr hRusng n
this zone. Destinations along the route to
hnjcwad such as ancr, Pashan, avdhan and
waNad havc arcady cmcrgcd as prcIcrrcd
rcsdcnla RcalRns IRr cmpRyccs wRrNng hcrc.
6Rng IRrward, dcslnalRns Rcalcd wlhn
hnjcwad and aRng lhc 0umba-Punc ypass
kRad w asR wlncss smar phcnRmcna.
FrRm 2007 lR 43 2012, wcsl Punc has wlncsscd
the launch of 73,035 units. The absorption during
lhc samc pcrRd has bccn 57,150 unls wlh 22%
remaining unsold. The unsold units percentage
ncrcascd cRnsdcraby pRsl 2009, 28,797 unls
wcrc aunchcd durng 2010 and 2011. Thc unsRd
unls' pcrccnlagc has mRvcd up IrRm 6% n 2009
to 22% in Q3 2012. Developers have taken stock
RI lhs Rvcrsuppy slualRn and hcncc rcduccd
lhc numbcr RI ncw aunchcs. 2ny /1 ncw
prRjccls cRnsslng RI 5,655 unls havc bccn
launched in 2012.
EXISTING
INFRA-
STRUCTURE
OUTER RING ROAD II & III
Thc 2ulcr kng kRad, rsl prRpRscd n 2007, w
bc a 170 Nm. Rng rng rRad n lhc pcrphcry RI
Punc and Pmpr Chnchwad whch w bc
dcvcRpcd by lhc 0aharashlra Slalc kRad
0cvcRpmcnl CRrpRralRn (0Sk0C) n IRur
phascs. Thc Rbjcclvc RI lhs rRad s lR rcducc
lrac cRngcslRn wlhn lhc cly by dvcrlng
outstation vehicles onto this road.
Phasc ll RI lhc 2ulcr kng kRad w slarl IrRm
Chmba Phala Rn lhc Punc-1ashN hghway (1h-
50) n lhc nRrlh and cRnnccl Prangul n lhc wcsl
va 0umba-Punc hghway and khc. Phasc lll w
cRnnccl Prangul wlh lhc Punc-angaRrc
hghway (1h-/) n lhc sRulh va Snhagad. Thcsc
rRads w pass lhrRugh lhc wcslcrn sdc RI
MUMBAI-PUNE BYPASS ROAD
Thc 0umba-Punc ypass kRad s an arlcra rRad
n wcsl Punc lhal slarls al lhc 0umba-Punc
Lxprcssway n lhc nRrlh and cRnnccls wlh lhc
Punc-angaRrc hghway ncar Kalraj n lhc sRulh.
Thc rRad passcs lhrRugh lhc cnlry pRnl RI
hnjcwad al waNad and acls as a vla lransl
route for the various residential destinations
Rcalcd n lhc wcsl ZRnc. Sncc l s a IRur-anc
hghway wlh lwR-anc scrvcc rRads, lhc lmc
taken to various locations on this route is
marginal. The road provides multiple access
pRnls lRwards lhc cly ccnlrc lhrRugh lhc
Kacwad kRad, ancr kRad and Pashan-Sus
Road. Residential development in West Pune has
been centred along the various access points of
this road.
4%
5%
6%
10%
17%
22%
UPCOMING
INFRA-
STRUCTURE
Over the next 5 years,
Hinjewadi is set
to become one of the
largest RLI VSace hubs
in India
From 2007 to Q3 2012, West
Pune has witnessed the
launch of 73,035 units
The unsold units
SIKcentage has moved IS
from 6% in 2009 to 22%
in SEPTEMBER 2012
fcasblysludyandprcparcadclacdprcjccl
rcpcrl.ThcccnslruclcncfPhascllandlllw
lakcasgnfcanlycngcrlmcasaargcnumbcr
cfnalurabcdcsanddcfcnccandarcccalcdcn
lhsrculc.WccxpcclPhasclllcbcrcadyby2018
andPhasclllpcsl2018.OlhcrlhanlhcOulcr
kngkcads,lhcrcarcncmajcrnfraslruclurc
prcjcclspanncdnWcslPunc.
HnjcwadanddrcclyccnncclwlhlhcMumba-
PuncExprcsswaynncrlhlhcandPunc-
angacrcHghway(IH-/)nlhcsculhlhcrcby
rcducnglhcslrancnlhccxslngMumba-Punc
ypasskcad.
MSkDCnJunc2012nvlcdgcbabdsfcr
appcnlmcnlcfccnsulanlslccarrycullhc
l^VI'1Î^1
IVl'LKYKIILK1
ThcmajcrcmpcymcnldrvcrnWcslPuncslhc
lT/lTcSscclcr.Sncc2008,mcrclhan22mn.
sq.fl.cfcffccspacchasbccnccnslruclcdnlhs
zcncncudnglhccaplvccffccscfccmpancs
kcTCS,lnfcsys,WprcandCcgnzanl.lnlhc
ncxlfvcycars,anaddlcna16.8mn.sq.fl.cf
cffccspaccwbcccmccpcralcnalaknglhc
lclacffccslccknWcslPunclc/7.3mn.sq.fl.
bylhccndcf2017.
Currcnly28%cflhclclacffccslccknWcsl
Puncsyngvacanlaslhcscwdcwnnlhc
lT/lTcSscclcrhasccmpccdmanyccmpancslc
dcaylhcrcxpanscnpans.Hcwcvcr,lhcscw
pacccfdcvcrynncwprcjcclsandmprcvcmcnl
nabscrplcnralcnlhcccmngycarswbrng
dcwnlhcvacancycvcslc16%by2017.Wc
fcrccaslanncrcmcnlaabscrplcncf17.6mn.
sq.fl.nlhcncxlfvcycarslaknglhclcla
cccupcdspacclc39.5mn.sq.fl.by2017.
ThclraclcncxpcclcdnWcslPuncscffccspacc
sbcundlccrcalcaddlcnacmpcymcnlnlhc
zcnc.SncclhcprcfcrcnccamcnglT/lTcS
IÎILYÎ^1lÎlL1LK'
l^WI'1IUÎ
cmpcyccsfcrrcsdngccscrlclhcrwcrkpacc
shgh,lsmpaclwbcpcslvcyfclcnlhc
dcmandfcrrcsdcnlaunlshcrc.
l^VI'1Î^1II'1l^1lL^'
l^WI'1IUÎ
EmpcymcnlcppcrlunlcsnlhclT/lTcSscclcr
wbclhcprmarydrvcrcflhcrcsdcnlamarkcl
nWcslPunc.Alhcughprccswrscnmajcrly
cflhcdcslnalcnsccalcdnlhszcnc,lhcrcw
bcccrlandcslnalcnslhalwculpcrfcrm
clhcrs.Dcslnalcnslhalarcnccscprcxmlylc
HnjcwadcrccalcdacnglhcMumba-Punc
ypasskcadwwlncsshghcrprcc
apprccalcnasccmparcdlcfarlhcrccalcns
duclclhcccnccnlralcncfcffccspacchcrc.
lnlhcasllcnycars,ccalcnssuchasancr,
acwad,Pashanandavdhanhavcwlncsscd
ccnsdcrabcprccapprccalcn,aslhcyarcncl
cnyccalcdccsclclhcclyccnlrcbulascarc
casyacccssbcfrcmHnjcwad.kapd
dcvccpmcnlcfphyscanfraslruclurc,crganzcd
rcla,sccanfraslruclurcandcnlcrlanmcnl
avcnucscvcrlhcaslccupccfycarshavc
rcsulcdnWcslPuncbcccmngascf-suffccnl
zcnc.Thshasrcduccdlhcnccdfcrslayng
ccscrlclhcclyccnlrc.lnslcad,prcxmlylclhc
wcrkpacchasbcccmcakcyfaclcrwhcnbuyng
KI'lII^1lIIIVIILIÎ^1l^
WI'1IIÎI'BII^
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LLI''ILl^1'LI1II
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50
/0
30
20
10
WEST PUNE OFFICE SPACE
DYNAMICS
BIILKI
2UUo
2UUo 2UU' 2U1U 2U11 2U12 2U1 2U14 2U1 2U16 2U11I
l^VI'1Î^1
IVl'LKYKIILK1
ahcusc.Thcscfaclcrshavccdlclhccmcrgcncc
cfncwcrrcsdcnladcslnalcnskcHnjcwad,
Wakad,Talhawadcandkavcl.Aparlfrcmbcngn
ccscprcxmlylcHnjcwad,prccsnlhcsc
dcslnalcnsarcascsgnfcanlycwcras
ccmparcdlcancr,acwad,Pashanand
avdhan.Thcdffcrcnccnprccwcvcnluay
narrcwdcwnrcsulngnhghcrapprccalcnfcr
lhcscccalcns.
Gcngfcrward,wccxpcclHnjcwad,Wakad,
Talhawadcandkavcllcwlncsslhcmaxmum
amcunlcfprccapprccalcnnPuncsrcsdcnla
markcl.WhcHnjcwadsccalcdwlhnlhc
kajvGandhlnfclcchPark,lhcclhcrlhrccarc
slualcdacnglhcMumba-Puncypasskcad.
Thcprmaryrcascnsnbrcffcrlhcscfcur
dcslnalcnslcculpcrfcrmclhcrsnPunccvcr
lhcncxlfvcycarsarc:
Puncwwlncssanncrcmcnladcmandcf
26.7mn.sq.fl.cfcffccspacccvcrlhcncxlfvc
ycarsprmarydrvcnbylhclT/lTcSscclcr.
66%cflhswbcwlhnWcslPunc.
UnkcEaslPunc,80%cfcffccsnlhcwcsl
arcccnccnlralcdnHnjcwad.Thsncrcascs
lhcmpcrlancccfrcsdcnlamarkclsccalcd
nccscprcxmlylcHnjcwad.
WlhWcslPunccmcrgngascf-suffccnlzcnc
cvcrlhcycars,lhcnccdfcrrcsdngccscrlc
lhcclyccnlrchasrcduccd.lnslcad,prcxmly
lclhcwcrkpacchasgancdparamcunl
mpcrlanccfcrbuyngahcusc.
Hnjcwad,Wakad,Talhawadcandkavcl
addrcssalhcabcvcfaclcrsduclclhcr
favcurabcccalcn
Addlcnay,prccsnlhcscdcslnalcnsarcsl
alasgnfcanldsccunlccmparcdlcncarby
ccalcnscfancr,acwad,Pashanand
avdhan.Thsdsccunlwnarrcwdcwnnlhc
ccmngfvcycars.
Mcslcflhcfaclcrslhalwdrvclhcrcsdcnla
prccsnWcslPuncwbcccmmcnfcralhc
dcslnalcnsccalcdhcrc.Hcwcvcr,lhcdcgrcccf
nfucncccflhcscfaclcrscncachcflhc
dcslnalcnswbcdffcrcnldcpcndngcnlhcr
ccalcnnWcslPunc.Aundh,whchslhcmcsl
cslabshcddcslnalcnnWcslPunc,hasbccn
ccnsdcrcdaslhcbcnchmarkfcrccmparng
prccsnlhszcncandgcngfcrwardwccxpccl
alhcclhcrdcslnalcnsccalcdhcrclcfccw
lhcprcclrcndcfAundh.
CurrcnlylhcrcsdcnlaprccsnHnjcwad,
Wakad,Talhawadcandkavclarcsgnfcanly
cwcrasccmparcdlcAundh.Wcbccvclhal
cvcrlhcncxlfvcycars,lhsdsccunlwnarrcw
dcwnduclclhcrcascnsslcdcarcr.
WIILKIL'1^
l^LKIÎ^1IB'LKI1lL^LI
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ÎX1YIK'
PRICE FORECAST
2012
Aundh Hinjewadi
`7,800
2017E
`11,200
`4,000
DESTINATION
HINJEWADI
The growing preference for the walk-to-work
concept among the IT/ITeS employees has led to
the emergence of Hinjewadi as the most sought
after residential location. The presence of various
integrated township projects within Hinjewadi
takes care of all the necessary requirements of
the residents such as education, organized retail
and entertainment.
Since 2007, 15,070 units have been launched, of
which 11,466 have been absorbed till Q3 2012.
The launch of various township projects has
ensured a steady supply of new units 2010
onwards, resulting in an increase in the
percentage of unsold units with each passing
year. Currently the percentage of unsold units
stands at 24%.
Going forward, we expect the absorption rate to
increase due to the reasons mentioned earlier
and this will positively impact prices in Hinjewadi.
Currently, Hinjewadi prices are 49% lower than
Aundh. We forecast this discount to narrow down
to 29% by the end of 2017 resulting in Hinjewadi
`8,000/sq.ft.
2007 2008 2009 2010
20,000
15,000
10,000
5,000
N
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RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF HINJEWADI
2011 2012*
TREND IN HINJEWADI
2007 2008 2012* 2009 2010 2011
INVESTMENT
advisory REPORT
17%
12%
14%
18%
28%
24%
1,881
975
175
3,750
4,214
4,076
`8,000
We expect Hinjewadi,
Wakad, Tathawade and
Ravet to witness the
maximum amount of price
appreciation
Currently the percentage
of unsold units stands at
24% in Hinjewadi
PRICE MOVEMENT
12,000
10,000
8,000
6,000
4,000
2,000
2013E 2014E 2015E 2016E 2017E BEFORE
2008
2008 09 20 10 20 11 20 2012
Hinjewadi Aundh Discount Margin
Investment Options in Hinjewadi
SELECT PROJECTS
Units Date Date
Megapolis
Properties
Life
Republic Developers
Blue Ridge Paranjape
Schemes
The Crown
Greens Estate
Sovereign Saarrthi 172 Dec-07 Mar-13
Kumar 4000 Mar-08 Dec-13
and ABIL
Kolte Patil 2100 Feb-11 Dec-14
2000 Oct-07 Dec-13
TCG Real 165 Sep-11 Mar-14
Group
1220 - 1800 4.9 - 7.2
860 - 1370 3.4 - 5.5
3BHK
2BHK
2.3 - 3.7 1BHK
571 - 930
INVESTMENT
advisory REPORT
49%
29%
Hinjewadi to increase by
100% from
2012 to 2017
Ticket size in Hinjewadi
starts from `3.4 mn.
for a 2 BHK
PRICE FORECAST
2012
Aundh Wakad
`7,800
2017E
`11,200
`4,500
From 2007 till Q3 2012, a
total of 15,570 units
haS been launched of
which12,864 units have
been absorbed in Wakad
DESTINATION
WAKAD
Till a few years back, Wakad was a non-descript
place. However, proximity to the Rajiv Gandhi
Infotech Park in Hinjewadi has led to many
IT/ITeS professionals preferring to reside here as
the travel time to work is hardly 10 minutes by
road. Additionally, it is well connected with
nearby locations such as Baner, Aundh, Pashan
and Bavdhan. Despite these reasons, prices in
Wakad have been historically at a discount as
compared to these nearby locations.
Availability of vast tracts of vacant land attracted
the attention of many developers and led to the
launch of more than 100 projects in Wakad since
2007. From 2007 till Q3 2012, a total of 15,570
units have been launched of which 12,864 units
have been absorbed. More than 50% of the total
units were absorbed during 2007 and 2008. Post
2008, the absorption rate has considerably
reduced due to the slowdown in the IT/ITeS
sector. Currently, 17% of the total units remain
unsRd whch s sgncanly hghcr lhan /% n
2007.
Going forward, we expect the absorption rate to
remain healthy, as a growing number of IT/ITeS
companies have begun to prefer Hinjewadi for
setting up their operations. Moreover, the drop in
new launches in 2012 will help in reducing the
unsold inventory of previous years. The traction
expected in Wakad will reduce the price discount
from 42% to 23% as compared to Aundh in the
cRmng vc ycars. wc IRrccasl lhc prccs lR
increase from `4,500/sq.ft. to `8,600/sq.ft. by
the end of 2017.
2007 2008 2009 2010
15,000
10,000
5,000 N
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RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF WAKAD
2011 2012*
TREND IN WAKAD
2007 2008 2012* 2009 2010 2011
INVESTMENT
advisory REPORT
`8,600
4%
7% 7%
8%
13%
17%
4,234
3,077
1,106
2,576
3,081
1,495
Wakad to increase by
91% in the coming 5
years
PRICE MOVEMENT
12,000
10,000
8,000
6,000
4,000
2,000
2013E 2014E 2015E 2016E 2017E BEFORE
2008
2008 09 20 10 20 11 20 2012
Wakad Aundh Discount Margin
A drop in new launches in
2012will help in
reducing the unsold
inventory of THE previous
years
Investment Options in Wakad
SELECT PROJECTS
Units Date Date
Pristine
Prolife Properties
Park
Turquoise Group
Kalpataru
Splendour
Casa
Imperia
Elite
Homes
Pristine 384 Sep-11 Dec-13
Pride Purple 192 Jun-11 Oct-14
Kalpataru 188 May-10 Dec-13
Aum Housing 290 Jan-11 Dec-13
DNV Builders 376 Mar-11 Feb-13
INVESTMENT
advisory REPORT
42%
23%
580 - 950
2.6 - 4.3
800 - 1500 3.6 - 6.8
1470 - 1750 6.6 - 7.9
1600 - 2700 7.2 - 12.2
Ticket sizeS in Wakad start
from `3.6 mn. for a
2 BHK
PRICE FORECAST
2012
Aundh Tathawade
`7,800
2017E
`11,200
`4,300
Tathawade can be
considered as an
extension of Wakad with
only 4 km. separating
them
DESTINATION
Tathawade
Tathawade can be considered as an extension of
Wakad with only 4 km. separating them. It is
located on the eastern side of the Mumbai-Pune
Bypass Road and can be accessed from Hinjewadi
through the Dange Chowk Road. Tathawade has
similar characteristics as Wakad except that the
prices are 5% lower here.
Tathawade is a relatively new residential market
with most of the projects launched only during
the last three years. Of the 1,415 units launched
since 2010, 1,038 units have been absorbed till
Q3 2012. Although the percentage of unsold
units is currently high, we expect it to fall in the
coming years as the destination will observe an
increase in absorption rate and lesser number of
new launches.
ln lhc ncxl vc ycars, lhc prcc lrcnd n
Tathawade will mirror that of Wakad as these two
markets are closely linked together. However, the
dcrcncc n prcc bclwccn lhcm w rcducc Rvcr
the years and prices in Tathawade will be almost
equal to that of Wakad by 2017. Similar to Wakad,
the price discount in Tathawade as compared to
Aundh will reduce from 45% to 24% resulting in
`8,500/sq.ft. by 2017.
2010
1,400
1,200
1,000
800
600
400
200
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RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF TATHAWADE
2011 2012*
TREND IN TATHAWADE
2012* 2010 2011
INVESTMENT
advisory REPORT
`8,500
4%
22%
27%
234
876
305
In the next 5 years, the
price trend in Tathawade
will mirror that of Wakad
as these two markets are
closely
linked
PRICE MOVEMENT
12,000
10,000
8,000
6,000
4,000
2,000
2013E 2014E 2015E 2016E 2017E 10 20 11 20 2012
Tathawade Aundh Discount Margin
Tathawade to increase by
98% in the coming 5
years
Investment Options in Tathawade
SELECT PROJECTS
INVESTMENT
advisory REPORT
45%
24%
Units Date Date
Elementa Akshar
Developers
Ganga
Aurum
Park
The Nook Bhojwani
Homes
Palladio Vilas
Javdekar
Group
850 Oct-10 Dec-14
Goel Ganga 144 Dec-11 Jun-14
Deployment
282 Jun-12 Dec-14
150 Sep-11 Sep-13
1250 - 1500 5.4 - 6.5
920 - 1200 4.0 - 5.2
3BHK
2BHK
1BHK 590 - 950
2.5 - 4.1
PRICE FORECAST
2012
Aundh Ravet
`7,800
2017E
`11,200
`3,950
We forecast prices in Ravet
to increase by 97% in
the coming 5 years
DESTINATION
RAVET
Ravet, which is further 5 km. north of Tathawade
and located on the eastern side of the Mumbai-
Pune Bypass Road is another destination that will
mmcnscy bcncl IrRm lhc grRwlh n
employment in Hinjewadi. The destination has
historically remained at a discount as compared
to Wakad and Tathawade, as it is located farther
north of Hinjewadi.
Similar to Tathawade, residential activities in
Ravet started post 2010 and a total of 1,744 units
has been launched since then. Since the
destination is relatively new, the absorption rate
has been slow and only 1,216 units have been
absorbed till date resulting in 30% of the total
units remaining unsold. However, going forward
we expect the absorption rate to increase, backed
by the incremental employment in Hinjewadi and
lower prices compared to nearby destinations.
In the coming years, the price trend in Ravet will
mirror that of Wakad and Tathawade as these
markets are closely linked together. However,
prices in Ravet will continue to remain at a
marginal discount compared to these
destinations due to its farther location from
Hinjewadi. Similar to Wakad and Tathawade, the
discount in price of Ravet as compared to Aundh
will reduce from 49% to 30% resulting in prices
increasing from `3,950/sq.ft. to `7,800/sq.ft by
2017.
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
N
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RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF RAVET
TREND IN RAVET
2012* 2010 2011
INVESTMENT
advisory REPORT
`7,800
2010 2011 2012*
17%
16%
30%
757
272
715
Residential activities in
Ravet started post 2010
and a total of 1,744
units has been launched
since then
PRICE MOVEMENT
12,000
10,000
8,000
6,000
4,000
2,000
2013E 2014E 2015E 2016E 2017E 10 20 11 20
Ravet Aundh Discount Margin
Ticket sizeS in Ravet start
from `3.2 mn. For
a 2 BHK
Investment Options in Ravet
SELECT PROJECTS
INVESTMENT
advisory REPORT
Units Date Date
Celestial
City and Pharande
Spaces
Silver
Gardenia Construction
Serene
Scapes
Rama Group 1200 Mar-10 Dec-16
Rohan 240 Nov-11 Dec-13
S. D. Tapkir 138 Jun-11 Jul-13
1178 - 1360 4.7 - 5.4
820 - 1200 3.2 - 4.7
3BHK
2BHK
1BHK 700 - 850
2.8 - 3.4
2012
49%
30%
DISCLAIMER
The statements made, information and opinions
expressed or provided in this publication are intended
only as a guide to some of the important
considerations that relate to the real estate sector in
India. This report is published for general information
only and does not contain or purport to contain all the
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