CB Property Insights Q2 2015

PROPERTY
INSIGHTS
India
Quarter 2, 2015
UPTICK IN ECONOMY, BETTER GROWTH PROSPECTS

INDIA MARKET OVERVIEW
The Gross Domestic Product (GDP) growth rate of
GROSS DOMESTIC PRODUCT GROWTH RATE
2014-15 was 7.5%, 0.9 percentage points higher from

the revised growth rate of 6.6% in the previous
quarter. In addition, the GDP growth rate for the FY
2014-15 was 7.3%, higher by 0.4 percentage points
Growth Rate (%)
India during the fourth quarter of the fiscal year (FY)
compared to the previous fiscal, hinting at

improvement in the economy. The sector which
witnessed higher growth compared to the previous
year include: finance, real estate & professional
services (11.5%), construction (4.8%), manufacturing
(7.1%) and electricity, gas, water supply & other utility
services (7.9%). However, agriculture, forestry &
fishing and mining & quarrying reported a major
decline in growth, which were recorded at just 0.2%
and 2.4%.
The Reserve Bank of India (RBI) in its bi-monthly
Monetary Policy Review in June 2015 reduced the
repo rate by 25 basis points (bps) to 7.25%, which was
the third rate cut this year so far as retail inflation has
been around 5%, and the government has been able
to contain the fiscal deficit at 4%. However, the central
bank kept the Cash Reserve Ratio (CRR) and the
Statutory Liquidity Ratio (SLR) unchanged at 4.0%,
and 21.5% respectively. The retail inflation as
Source: Central Statistical Organisation, Govt. of India* (as per the revised estimates)
5.01%. The Wholesale Price Index (WPI) continued to be

in dis-inflationary zone on year on year (y-o-y) basis,
which was recorded at (-2.36%) in May 2015 as primary
food inflation eased to a six months low of 3.8%.
Current Account Deficit (CAD) narrowed to 0.2%
of GDP in the fourth quarter of FY 2014-15 from 1.6% in
the previous quarter helped by lower trade deficit
primarily due to fall in global crude prices while
foreign investments inflows remained robust.
However, the HSBC India Purchasing Managers Index
(PMI) for services sector, which contributes 51% to the
Indian economy, contracted for the first time in the
past 13 months and stood at 49.6 in May 2015
compared to 52.4 in the preceding month.
The commercial office sector witnessed a total of
measured in terms of Consumer Price Index (CPI) for
about 13.6 million square feet (msf) of new supply
the month of April 2015 fell to 4.87%, but increased
during the second quarter of 2015 across the top eight
marginally in the subsequent month (May 2015) to
cities1. This was higher by about 83% over the
1
Last Modified Date : 28-07-15
preceding quarter as Chennai (17 times) and Pune (5
(FC Road, Koregaon Park and Aundh) and Bengaluru
times) saw a very substantial increase in the supply.
(Brigade Road) witnessed rentals declined by 2-5%
Similarly, total net absorption too noted an increase
owing to limited demand. Lower Parel and Goregaon in
by 25% from the previous quarter to 9.9 msf, led by
Mumbai and Kamanahalli in Bengaluru were the only
Bengaluru with 37% share in total net absorption
main-streets where rentals appreciated (q-o-q) by
followed by Pune with 23% share. Overall vacancy
13-15% and 7% respectively owing to limited availability
level inched up marginally by 0.13 percentage point
of quality space amidst increased enquiries.
over the previous quarter and was recorded at 20.1%

on the back of huge supply influx.
In the residential sector, about 28,100 units were

launched in the top eight cities during the second
In the retail sector, no new mall supply was added
quarter of 2015, an increase of 14% over the previous
during the second quarter of 2015. As a result, overall
quarter. Within the total unit launched this quarter,
mall vacancy levels of the top eight cities declined by
Delhi-NCR had the highest share at 25%, followed by
1.1 percentage points to 13.6%. In addition, three malls
Bengaluru with a 16% share. Capital values during the
with high vacancy levels, were closed this quarter in
quarter remained stable across most cities in
Mumbai, contributing to a decline in overall vacancy
comparison to the previous quarter owing to slow
levels. Mall rentals remained stable across most cities.
pace of sales velocity. However, few submarkets in
However, certain submarkets in western region of
Kolkata and Pune witnessed appreciation in capital
Mumbai (Kandivali, Kurla, Thane, Bhandup-Mulund)
values in 1-4% range for mid segment units on the
and Pune (Hadapsar) reported quarter-on-quarter
back of steady demand. Also, high-end and luxury
(q-o-q) rental decline of 7-9% decline owing to high
segments of a few submarkets in Kolkata and Delhi-
availabilities, low demand and competitive pressure.
NCR respectively witnessed about 3% appreciation in
Additionally, mall rentals in Somajiguda and NTR
capital values on a q-o-q basis. Residential sales are
Gardens in Hyderabad witnessed double-digit decline
likely to improve as banks have started reducing
(14-20%) due to decline in footfalls and lack of
lending rates on home loans.
demand. Rentals in certain main streets in Pune
Trends & Updates

Economic Trends
The Consumer Price Index (CPI) increased
EXCHANGE RATE MOVEMENT (INR/USD)
marginally from (a three month low of) 4.87%

the CPI remained well within the central bank's
targetted comfort zone, suppressing insecurities
INR/USD
recorded in April 2015 to 5.01% in May 2015. However,
arising out of forecasted rainfall deficit this year.

Though the Wholesale Price Index (WPI) remained in
dis-inflationary zone, it recorded narrower disinflation in May 2015 at (-2.4%) compared to (-2.7%)
Source: RBI
FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR
in the previous month. The inflation for the minerals

remained in sub-zero zone (-28.4%) for the tenth
average price for the Indian crude oil basket.
Primary food inflation further eased to a six month
INR Crore
conseutive month, owing to about 36% fall in
low of 3.8% in May 2015. The core inflation (non-food

manufactured products) further fell to (-0.65%) in
May as against (-0.41%) in the previous month.
Source: Dept. of Industrial Policy & Promotion, Govt, of India
Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.
2
In light of controlled CPI and WPI, the RBI reduced
BSE REALTY INDEX
repo rate by 25 bps to 7.25% in its Bi-Monthly

Monetary Policy Review held in June 2015. However,
the central bank has kept the CRR and SLR unchanged
at 4.0% and 21.5% respectively. Further easing in key
policy rates are expected from the central bank owing
to positive macro-economic data such as controlled
twin deficit (current and fiscal deficits) and inflation
within comfort zone. The Indian economy is projected
Source: BSE
to grow at 7.5% in the FY 2015-16.

previous year. Of this about 2.4% was attracted by
The central government has been able to achieve
better than targetted numbers on fiscal deficit and
revenue deficit front, which have been confined to
4.0% and 2.8% for the FY 2014-15, as against the
targets of 4.1% and 2.9% respectively. The Current
Account Deficit (CAD) narrowed to 0.2% of GDP in the
fourth quarter of FY 2014-15 from 1.6% in the previous
the construction development sector (comprising

townships, housing, built-up infrastructure) totalling
around INR 4,582 crores. On the back of robust
foreign capital inflows, the central bank added a
whopping USD 61.4 billion to the foreign exchange
reserves in FY 2014-15, significantly higher from USD
15.5 billion in the previous fiscal.
quarter. CAD for the FY 2014-15 was also lower at 1.3%

of GDP compared to 1.7% in the previous fiscal,
The BSE Realty Index dropped by 251.25 points to
primarily on account of lower crude oil prices and
close at 1,413.26 points at the end of June 2015 due to
robust foreign capital inflows.
capital outflows from FIIs especially in the month of

May amidst tax notices sent by the Finance Ministry to
For the FY 2014-15, the FII investments in equity

and debt markets together stood at around INR
the FIIs for the Minimum Alternative Tax (MAT)

payments for previous years.
250,670 crores (USD 41 billion). However, the Indian

Rupee came under pressure as it fell against the US
The Cabinet Cabinet Committee on Economic
dollar during the second quarter of 2015 to INR 64.08
Affairs (CCEA) approved the low cost housing scheme
in June from INR 62.56 in March as FIIs pulled out
for promoting affordable housing for the urban poor
money from Indian equities in the month of May
under the Housing for All by 2022 initiative in June
amidst concerns over Minimum Alternative Tax (MAT)
2015. Accordingly, the interest subsidy has been hiked
notices and subdued corporate earnings during the
to 6.5% on housing loans to beneficiaries belonging
Jan-March quarter.
to economically weaker sections (EWS) including slum

dwellers and low-income groups (LIG).
The total Foreign Direct Investment (FDI) inflows in

India during FY 2014-15 were recorded at INR 189,107
crores (USD 31 billion), an increase of 28% over the
Residential Trends
Capital values across most cities remained stable
RESIDENTIAL CAPITAL VALUES GROWTH INDEX
on q-o-q basis owing to slow pace of sales velocity

amidst subdued demand. However, select
submarkets in mid-segment in Kolkata witnessed
about 2-4% q-o-q appreciation in capital values
ow i n g to stea d y d e m a n d a n d i m p rove d
infrastructure. Additionally, luxury segment in
Gurgaon submarket in Delhi-NCR witnessed about
3% appreciation in capital values over the previous
Source: Cushman & Wakefield Research
3
quarter, on the back of increased demand from
NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 2Q 2015
investors. In the near term, the capital values are

likely to remain stable until the demand improves.
During the second quarter of 2015, around
28,100 new unit launches were witnessed in the top
eight cities, higher by about 14% over the preceding
quarter. This was primarily due to substantial
increase in new launches in Delhi-NCR, wherein new
unit launches more than doubled (144%) over the
previous quarter. In addition, with about 6,900 unit
launches, Delhi-NCR accounted for 25% of the total

unit launches during Q2 2015, followed by Bengaluru
during the quarter stood at 12%, 8% and 4%. Mid
with a 16% share. Kolkata and Pune also witnessed a
segment accounted for nearly 63% in total unit
q-o-q increase in unit launches by 15% and 13%
launches across top eight cities, followed by
respectively. New unit launches in Mumbai, Chennai
affordable segment with a, 25% share. The
and Hyderabad declined from the previous quarter
remainder of the unit launches were in high-end
and their respective shares in total unit launches
(11%) and luxury (1%) segments.
4
Index
Ahmedabad...................................................................................
Bengaluru......................................................................................
Chandigarh.................................................................................... 13
Chennai.......................................................................................... 16
Delhi - National Capital Region (NCR) .................................... 20
Hyderabad..................................................................................... 24
Jaipur ............................................................................................ 28
Kolkata..........................................................................................
31
Mumbai........................................................................................... 36
Pune............................................................................................... 40
5
Ahmedabad
Market Overview
Nearly 2,300 units were launched during the
READY RESIDENTIAL PROPERTY VALUES IN JUNE '15
second quarter of 2015, marking an improvement of

33% from the previous quarter. Due to the launch of
two projects with more than 400 units each, the
Western submarket led the launch activity with 54%
contribution to total unit launches. Mid segment
dominated the quarterly unit launches with a 56%
share, whilst high-end segment contributed the rest.
Both capital and rental values remained nearly
stable across submarkets during the quarter.
Represents Mid and High End segments
Office sector witnessed around 145,200 square

feet (sf) of net absorption in the second quarter of
Ahmedabad mall vacancies declined by 0.1
2015, registering a decline of 6% as compared to the
percentage point over the quarter to 33.2% in the
previous quarter. 96% of the quarterly net absorption
second quarter of 2015. This marginal decline in
was contributed by Grade A developments. Absence
vacancy level was due to limited transaction activity
of new completions during the second quarter amidst
witnessed in malls amidst subdued demand from
decent transaction activity led to a 0.7 percentage
retailers. The leasing activity in main streets also
points decline in all Grades vacancy level to 18.5%.
declined due to limited availability of quality spaces.
Trends & Updates

Ready Residential Property Update
Capital values of ready residential projects
reputed developers in key locations like Satellite,
remained stable as compared to the previous quarter.
Prahladnagar, S.G. Highway and Vastrapur witnessed
Select under-construction residential projects by
slight improvement of up to 6% in quoted values.
6
Average Capital Values High-end Segment (INR '000/sf)

Location
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
Satellite
4.0 - 4.8
4.3 - 6.0
4.3 - 6.0
4.3 - 6.0
4.3 - 6.0
4.3 - 6.0
4.3 - 6.5
Vastrapur
3.7 - 4.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.5
S.G.Highway
3.7 - 4.3
3.7 - 4.5
3.7 - 4.5
3.7 - 4.5
3.7 - 5.0
3.7 - 5.0
3.7 - 5.2
Prahlad Nagar
4.2 - 5.3
4.2 - 6.0
4.2 - 6.0
4.2 - 6.2
4.2 - 6.2
4.2 - 6.2
4.2 - 6.5
Source: Cushman and Wakefield Research

Note: The above values for high-end segment typically include units of 2,000-4,000 sf
Average Capital Values Mid Segment (INR 000/sf)

2010
2011
2012
2013
2014
1Q 2015
2Q 2015
2.8 - 3.8
2.8 - 4.3
2.8 - 4.3
2.8 - 4.3
2.8 - 4.3
2.8 - 4.3
3.0 - 4.3
Vastrapur
2.6 - 3.5
2.6 - 3.8
2.6 - 3.8
2.6 - 3.9
2.6 - 3.9
2.6 - 3.9
2.8 - 4.0
S.G.Highway
3.0 - 3.8
3.3 - 4.3
3.3 - 4.3
3.0 - 4.3
3.0 - 4.3
3.0 - 4.3
3.2 - 4.3
Prahlad Nagar
2.8 - 3.6
3.2 - 4.2
3.2 - 4.2
3.2 - 4.3
3.2 - 4.3
3.2 - 4.3
3.5 - 4.3
Location
Satellite

Note: The above values for mid segment typically include units of 1,200-1,800 sf
#
Limited availability at quoted values
New Residential Launches

Nearly 32% of the total 2,300 launches in second
Western submarket amongst end-users, all the high-
quarter of 2015 were 2 Bedroom-Hall-Kitchen (BHK)
end segment launches this quarter were located in
configuration, while 30% were 3 BHK configuration.
this submarket. Nearly 80% of the launches were
The 2 and 3 BHK units launched this quarter had an
witnessed in locations like Thaltej, Vejalpur and
average size of 1,550 and 2,400 sf respectively. Due
Nehrunagar in the high-end segment.
to the continued preference of locations in the
Project Name
Developer
Location
Number of Units*
Type
Area of Units (sf)
Maple Tree
Ganesh Housing
Thaltej
512
Apartments
3 BHK: 2,295;
4 BHK: 4,412
Cloud 9
JV - Addor Realty
& Vivan
Infrastructure
Nehrunagar
448
Apartments
2 BHK: 2,295;
3 BHK: 2,943;
4 BHK: 2,943 to 3,573
Swami Narayan Park 2
Dharmadev
Vasna
400
Apartments
2 BHK: 1,125 to 1,215
Unique Ashiyana
Unique Infraspace
Gota
384
Apartments
1 BHK: 774 to 801;

2 BHK: 1,179
Orchid Heights
HN Safal
Sardar Patel
Ring Road
272
Apartments
3 BHK: 1,960;
4 BHK: 2,460
Sun Simpolo
Sun Builders
Bodakdev
246
Apartments
1 BHK: 585;
1.5 BHK: 720
Parijat
B Safal
Constructions
Vejalpur
44
Apartments
4 BHK: 3,857
* Estimated and as per market information
7
Under Construction Residential Property Update

The western submarkets continued to dominate
availability of large tracts of land and comparatively
the under-construction scenario with locations such
affordable rates at these locations. Capital values in
as Prahladnagar, Vasna, Bopal, etc. leading the
under-construction projects remained mostly stable
activity. Northern locations like Motera and Ranip
to stay relevant in competitive market.
also witnessed sizeable construction activity due to
Commercial Office Sector

Ahmedabad witnessed 153,200 sf of leasing
quarter witnessed the first pre-commitment of the
activity in the second quarter of 2015. The IT-ITeS
year, with a telecom company committing to 30,000
sector dominated the leasing activity followed by
sf of space in an upcoming Grade A development.
consulting sector with 69% and 18% contribution
Grade A vacancy also dipped by 1.6 percentage
respectively. Gandhinagar (65%) and S.G. Highway
points to 31.8% due to no new supply and sizeable
(25%) witnessed maximum leasing during this
transaction activity during the quarter.
period accounting for 90% of the total activity. This
Retail Sector
Mall rentals continued to remain stable due to
Main street rentals also remained stable amidst
limited enquiries and high vacancy levels. Majority of
limited transaction activity as landlords quoted
the enquiries across malls and main streets were from
similar rents to attract retailers.
Food & Beverage (F&B) retailers and lifestyle brands.
Outlook
Residential launches are likely to decline
marginally in the coming quarter amidst sizeable
unsold inventory, limited projects in pre-launch
phase and wait-and-watch approach being adopted
by buyers. Some developers may postpone their
project launches to the fourth quarter expecting
improvement in sales during the festive season.
contribute to an increase in vacancy levels across

submarkets.
Retail leasing activity is likely to be moderate due
to no new mall supply and limited availability of
quality space in existing malls. Mall rentals are likely
to remain stable except S.G. Highway which might
register slight correction due to high vacancy levels.
Nearly 1.97 msf of Grade A new office supply is
Main streets are expected to witness improvement
likely to be delivered by the end of the year in
in demand with major enquiries from F&B and
Ahmedabad. While transaction activity is expected
jewellery retailers. Key main street locations like C.G.
to improve, it is unlikely to keep pace with the
Road, Prahladnagar and S.G. Highway might record
expected increase in supply during the coming
marginal improvement in rentals with pick-up in
quarters. This demand-supply imbalance might
demand.
8
Bengaluru
Market Overview
In the second quarter of 2015, nearly 4,500 units
READY RESIDENTIAL PROPERTY VALUES IN JUNE'15
were launched; a 10% increase from the previous

quarter. Mid segment unit launches were dominant,
with a total share of about 90%. The Eastern and
Northern submarkets comprised of maximum unit
launches of 28% and 27% respectively.
The office supply doubled from the previous
quarter and was recorded at nearly 4.0 million
square feet (msf). More than half (57%) of the Grade
A supply was witnessed in Outer Ring Road, followed
by 26% in the Peripheral South Market. Strong

leasing in Grade A spaces was noted at 3.8 msf,
which was similar to the leasing recorded in the
vacancy by 0.3 percentage point to 8.46% in
previous quarter.
Bengaluru.
A combination of steady leasing activities and no

new mall supply led to a dip in the overall mall
In the second quarter of 2015, the
rentals across all malls and main streets remained

largely steady, with a few exceptions.
Trends & Updates

Capital Values across all submarkets in Bengaluru
destinations and the presence of quality social and
maintained status quo, especially due to slow-moving
physical infrastructure act as a strong demand driver
inventory. The rental values in mid segment of South-
leading to a subsequent increase in demand for rental
Eastern and Eastern submarkets comprising of the IT
housing in the South-Eastern and Eastern submarkets.
hub along Outer Ring Road (ORR) and Whitefield
However, the high-end segment of the Eastern
locations witnessed a quarter-on-quarter rental
submarket witnessed softening of demand, resulting in
appreciation of 5%. The proximity to these IT
a 5% dip in rentals from the previous quarter.
9
Average Capital Values High-end Segment (INR000/sf)

Location
2008
2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
Central
14.0 - 18.0
12.0 - 14.5
13.5 - 17.5
14.0 - 18.0
18.0 - 28.0
18.0 - 30.0
18.0 - 30.0
18.0 - 30.0
18.0 - 30.0
South
7.0 - 9.0
6.0 - 8.5
6.0 - 9.5
6.5 - 10.0
6.5 - 10.0
6.8 - 10.3
7.0 - 10.3
7.0 - 10.5
7.0 - 10.5
Off-Central
6.5 - 7.5
5.0 - 6.8
5.0 - 7.0
6.0 - 8.5
7.0 - 9.0
8.0 - 11.0
8.0 - 11.0
8.0 - 11.0
8.0 - 11.0
East
6.5 - 9.0
5.6 - 7.0
6.5 - 7.5
6.8 - 8.0
6.5 - 9.0
6.5 - 10.0
6.5 - 10.0
6.5 - 10.0
6.5 - 10.0
North
6.0 - 8.0
5.5 - 7.0
5.5 - 7.0
6.5 - 8.0
6.5 - 8.2
7.0 - 9.5
7.0 - 9.8
7.0 - 11.0
7.0 - 11.0

Note: The above values for high-end segment typically include units of 2,000-4,000 sf.
Average Capital Values Mid Segment (INR000/sf)

Location
2008
2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
Central
5.8 - 7.0
5.0 - 6.0
5.5 - 7.0
6.0 - 7.5
6.0 - 8.0
9.0 - 12.0
9.0 - 12.0
9.5 - 13.0
9.5 - 13.0
East
2.7 - 3.1
2.4 - 2.7
2.7 - 3.1
3.2 - 3.8
3.8 - 4.8
4.0 - 5.5
4.0 - 5.5
4.3 - 5.7
4.3 - 5.7
South-East
2.9 - 4.0
2.5 - 3.2
2.8 - 4.0
3.4 - 5.0
4.0 - 5.5
4.5 - 5.9
4.5 - 6.0
4.5 - 6.3
4.5 - 6.3
North
5.0 - 6.5
2.8 - 4.0
2.8 - 4.4
3.0 - 4.8
6.0 - 9.0
6.0 - 9.0
6.0 - 9.0
7.0 - 10.0
7.0 - 10.0
South
3.0 - 4.0
4.6 - 5.7
4.8 - 6.0
5.0 - 6.5
3.5 - 5.5
3.5 - 5.5
4.0 - 5.5
4.0 - 6.5
4.0 - 6.5
South-West
2.8 - 4.2
2.7 - 3.9
3.2 - 4.5
3.6 - 5.0
4.0 - 5.5
4.5 - 6.5
4.5 - 6.5
4.5 - 6.5
4.5 - 6.5
Off-Central*
3.5 - 6.0
3.3 - 5.7
4.0 - 6.2
4.5 - 6.7
5.0 - 7.5
7.0 - 10.0
7.0 - 10.0
7.0 - 10.0
7.0 - 10.0
Off-Central**
4.0 - 6.0
3.7 - 5.7
3.8 - 6.2
4.3 - 6.7
5.0 - 7.0
6.0 - 8.0
6.5 - 8.5
6.5 - 8.5
6.5 - 8.5
North-West
4.2 - 5.8
3.5 - 5.2
3.8 - 5.6
4.3 - 6.2
4.5 - 6.5
5.5 - 6.5
6.0 - 6.8
6.0 - 6.8
6.0 - 6.8

Note: The above values for mid segment typically include units of 1,600-2,000 sf.
Key to locations:
High-end segment
East: Marathalli, Whitefield, Old Airport Road
Central: Lavelle Road, Off Palace Road, Off Cunnigham
South-East: Sarjapur Road, Outer Ring Road, HSR
Road, Ulsoor Road, Richmond Road
Layout
South: Koramangala, Outer Ring Road, Bannerghatta
South: Kormangala, Jakkasandra
Road, JP Nagar
Off-Central: Frazer Town, Benson Town, Richards Town,
Dollars Colony
East: Whitefield (villas)
North: Hebbal, Yelahanka, Jakkur, Devanahalli
South-West: Jayanagar, J P Nagar, Kanakpura Road,

Bannerghatta Road, BTM Layout
North: Hebbal, Bellary Road, Yelahanka, Dodballapur
Road, Jalahalli
Off-Central*: Vasanth Nagar, Richmond Town and
Indiranagar
Mid segment
Central: Brunton Road, Artillery Road, Ali Askar Road,
Cunningham Road
Off-Central**: Cox Town, Frazer Town, HRBR, Benson

Town, etc.
North-West: Malleshwaram, Rajajinagar
10

The second quarter of 2015 witnessed new unit
the mid segment projects. The Eastern submarket
launches of approximately 4,500 units. Similar to
witnessed 28% of unit launches especially in the Old
the last quarter, 69% of these total launches were
Madras Road and Whitefield locations. This was
pre-launched in the previous quarters. Overall, there
followed by 27% share of the total launches in
was a 10% quarter-on-quarter increase in the total
Northern sub-market, especially in Horamavu and
units launched, with over 90% share belonging to
Off Hennur Road locations.
Project Name
Developer
Location
Number of Units*
Type
Area of Units (in sf)
Vaishnavi Gardenia
Vaishnavi Group
Jalahalli
600
Apartments
2 BHK: 1,100 to 1,175;

3 BHK: 1,440 to 1,550
Bollineni Silas
Bollineni
Whitefield
499
Apartments
2 BHK: 1,060 to 1,405;

3 BHK: 1,590 to 1,600
Salarpuria Sattva
Cadenza
Salarpuria Sattva
Group
Hosur Road
493
Apartments
1 BHK: 703; 2BHK: 1,183;

2.5 BHK: 1,564;
3 BHK: 1,850
Purva Waves
Puravankara
Developers
Hennu Road
468
Apartments
2 BHK: 1,232 to 1,348;

3 BHK: 1,630 to 1,846
Vaswani Equisite
Vaswani Group
Whitefield
450
Apartments
2 BHK: 1,890 to 2,330;

3 BHK: 2,820
Gopalan Olympia
-Phase I
Gopalan Enterprises
Kumbalgodu
449
Apartments
2 BHK: 1,000;
3 BHK: 1,360
Prestige Gulmohar
Prestige Group
Horamavu
400
Apartments
2 BHK: 1,169;
2.5 BHK: 1,370;
3 BHK: 1,623 to 1,752
DSR Waterscape
DSR Properties
Horamavu Road
334
Apartments
2 BHK: 1,179 to 1,255;

3 BHK: 1,435 to 1,752
Vaswani Claremont
Vaswani Group
Whitefield
300
Apartments
2 BHK: 1,150 to 1,200;

3 BHK: 1,590 to 2,100
Emmanuel Heights
Emmanuel
Constructions
Sarjapur Road
293
Apartments
2 BHK: 1,115 to 1,197;

3 BHK: 1,445 to 3,366
TG Epitome
TG Developers
Doddanekundi
93
Apartments
2 BHK: 1,200;
3 BHK: 1,400
Garuda Green Field
Garudachala
Estates
Mahadevapura,
Outer Ring Road
90
Apartments
2 BHK: 1,200;
3 BHK: 1,450
The Big Tree
Ceear Realty
Jayanagar
Apartments
4 BHK: 4,300

Around 174,600 residential units are under
quarter. Far South, North and Eastern locations
construction across various submarkets. Mid
comprise of a predominant (75%) share of the total
segment comprises at least 56% of the total under-
affordable projects under construction in the city.
construction units, followed by 23% of units in the

affordable segment. Most of the new under
construction units noted in this quarter were mid
segment apartments offering 2BHK and 3BHK
configuration. Affordable segment launches
appeared to be subdued in this quarter as compared
to 6% of the total unit launches launched in the last
Over the last few quarters, developers have

offered schemes like paying pre-EMI or giving a buyback option to the end user post procession to
incentivize the latter and increase the sales. Given
the slow movement of existing inventory, different
subvention schemes are on the rise across the city.
11

Grade A net absorption of about 3.2 msf was
recorded during the second quarter of 2015. While
the transactions in Grade A spaces were healthy this
quarter, relocation activities resulted in a
comparatively lower net absorption of 3% from the
previous quarter. However, Grade A leasing was at
3.8 msf and at par with the previous quarter. Major
leasing activities were noted in the Outer Ring Road
(41%) and Peripheral East (22%) submarkets. Also,
the IT-ITeS continued to be a dominant demand
driver with nearly 76% of the total leasing, followed
by BFSI sector that constituted 8% of total leasing.
commitments of 1.2 msf, nearly 41% increase from

the previous quarter.
Bengaluru witnessed a rental decline in select
submarkets in Grade A office spaces. Peripheral
South and Suburban East witnessed a 6% and 13%
decline in their weighted average rentals
respectively, owing to limited absorption and
available spaces quoting lower rentals. Given high
new supply and healthy absorption, the overall
Grade A vacancy increased by 0.5 percentage point
and stood at 8.5%.
The second quarter of 2015, recorded total pre-
Retail Sector
Mall and main street rentals were stable across
enquiries and limited availability of quality space. On
most submarkets during the second quarter of 2015.
the other hand, Brigade Road witnessed a 5% rental
While there was no new mall supply, steady leasing
decline, owing to dwindling demand over the last few
activities were noted in malls across Whitefield,
quarters. Automobile, fitness, apparel and jewellery
Magrath Road and Malleswaram, especially by
brands were some of the prominent retailers that
apparel, electronic and Food & Beverage (F&B)
leased space in Koramangala, Indiranagar and
retailers. Among main streets, Kamanahalli Main
Commercial Street in this quarter.
Road rentals appreciated by 7.7% owing to increased
Outlook
The residential launches are likely to be restrained in
be in Grade A development. Outer Ring Road and
the following quarters due to surplus existing inventory,
Peripheral East submarkets are likely to witness
amidst stable demand across most submarkets. Rental
marginal rental appreciation due to continued
and capital values are likely to remain stable across
demand, while the other submarkets may maintain
most submarkets, with the exception of the South-
status quo in their rental values.
Eastern and Eastern submarkets which may witness a

capital value appreciation in the mid segment due to
growing demand.
In the third quarter of 2015, new office supply of
nearly 3.5 msf is expected, most of which is likely to
Rentals may hold steady across most malls and main

streets. A new mall measuring 320,000 sf is expected to
be operational in Binnypet next quarter. New BEL Road
and Kamanahalli Main Road are likely to witness an
upward rental revision due to steady demand.
12
Chandigarh
Market Overview
In the second quarter of 2015, approximately
1,100 units were launched in the Tri-City region. The

new launches were primarily in the outskirts in
submarkets of Zirakpur and Mohali. The high-end
segment witnessed healthy transaction activity
during the quarter. However, capital values
continued to maintain status quo due to sustained
selling pressure. Capital values in the mid segment
too remained stable across submarkets. Submarkets
in Peer Mushalla, Zirakpur and Mohali witnessed
increased number of inquiries as construction work
on the ring road recommenced during the quarter.

No new office space was added to the Tri-City
Vacancy levels in the submarket of Mohali increased
during the quarter. Demand for office space during
due to the addition of new supply. Demand for mall
the quarter was primarily from companies belonging
space remained tepid during the quarter. In the main
to Banking, Financial and Insurance Services (BFSI),
street locations, demand was primarily from
consulting and telecommunication sectors. Grade A
footwear and apparel brands. Rentals remained
office rentals remained stable during the quarter, due
stable for both malls and main street locations
to the high prevailing vacancies and subdued demand.
across Chandigarh.
Approximately 350,000 sf of retail area was added

to the Tri-City region in the second quarter of 2015.
Trends & Updates

Capital values remained stable across all
competitive prices. Despite improved buyers
locations from the previous quarter. Transaction
interest, capital values in the markets of Zirakpur
activity in the high-end segment improved during
and Mohali remained stable due to high-unsold
the quarter with availability of good deals at
inventory in the market.
13
Average Capital Values High-end Segment (INR)

1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
2Q 2015
Chandigarh
Sector: 2-11
155,000 170,000/sqyd
155,000 170,000/sqyd
155,000 170,000/sqyd
155,000 170,000/sqyd
155,000 170,000/sqyd
155,000 170,000/sqyd
Chandigarh
Sector: 28
140,000 160,000/sqyd
140,000 160,000/sqyd
140,000 160,000/sqyd
140,000 160,000/sqyd
140,000 160,000/sqyd
140,000 160,000/sqyd
Panchkula
110,000 145,000/sqyd
110,000 145,000/sqyd
110,000 145,000/sqyd
110,000 145,000/sqyd
110,000 145,000/sqyd
110,000 145,000/sqyd
Manimajra
14,000/sf
14,000/sf
14,000/sf
14,000/sf
14,000/sf
14,000/sf
Location

Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villa *sqyd: Square Yard
Average Capital Values Mid Segment (INR/sf )

Location
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
2Q 2015
Zirakpur
2,800 - 3,400
2,800 - 3,400
2,800 - 3,500
2,800 - 3,600
2,800 - 3,600
2,800 - 3,600
Mohali
3,000 - 3,800
3,200 - 3,800
3,200 - 4,000
3,200 - 4,200
3,200 - 4,200
3,200 - 4,200
Dera Bassi
2,800 - 3,200
2,800 - 3,400
2,800 - 3,500
2,700 - 3,500
2,700 - 3,500
2,700 - 3,500
Panchkula
2,800 - 3,400
2,800 - 3,400
2,900 - 3,500
2,900 - 3,500
2,900 - 3,500
2,900 - 3,500

Note: The above values for mid segment apartments typically include units of 1,600-2,000 sf
Key to Locations:
High-end Segment:
Mid Segment:
Panchkula: Sectors - 2, 4, 6, 7, 8, 9, 15
Mohali: Sectors - 114, 115, 127

Panchkula: Sector - 20

The Tri-City region witnessed launch of
approximately 1,100 units in the second quarter of 2015.
new launches were primarily in the western and

southern regions namely, Zirakpur and Mohali.
With basic prices in the range of INR 3,200-3,800/sf,

Project Name
Developer
Location
Number of Units*
Type
Area of Units (sf)
Gillco Park Hills
Gillco
Sector 126, Mohali
700
Apartments
2 BHK: 1,075;
3 BHK: 1,420 to 1,655;
4 BHK: 2,350
The Eminence
Alliance Buildtech
Zirakpur
192
Apartments
3 BHK: 1,460
Tulip and Carnation

Tower
Ansal API
Sector 115, Mohali
192
Apartments
3 BHK: 1,695 to 1,806
14

In Q2 2015, capital values of under construction
expected to begin operation shortly. Few projects in
remained stable across submarkets. The
Zirakpur and Panchkula are expected to be ready for
submarkets of Peer Mushalla, Zirakpur and Mohali
possession in the next quarter.
witnessed increased traction as the new airport is

In the second quarter of 2015, BFSI, consulting and
and SEZs were around INR 50-60 per square feet per
telecommunication sector companies had a major
month (psf pm) and commercial spaces were at INR 70-
share in office space take-up. Quoted rentals of IT Parks
95 psf pm.
Retail Sector
The second quarter of 2015 witnessed
Carat lane and Nilkamal. In main street locations,
approximately 350,000 sf of new retail space.
footwear and apparel, retailers such as Hush Puppies
Demand in mall space was primarily from Food and
and Blackberry took up space in Sector 17 market.
Beverage (F&B), jewellery and home furnishing
Rentals across malls and main street locations
brands. Some of the retailers include, Coffee Day,
remained stable during the second quarter of 2015.
Outlook
Capital values are likely to remain stable in the
high-end segment despite improvement in
transaction activity, especially due to significant
existing unsold inventory. New launch activity is
likely to pick up in the southern submarket of
Zirakpur and on the 200ft road as the new airport
begins operation.
No new office supply is likely to be added in the
next quarter. Demand may remain moderate and
rentals are expected to remain stable over the next

quarter, considering the prevailing high vacancies.
No new mall space is scheduled for completion in
the third quarter of 2015, which is expected to lead to
decline in vacancy levels. Rental values in malls are
expected to remain stable in Chandigarh city due to
stable demand whilst they may soften marginally in
the peripheral submarkets, during the next quarter
due to high vacancies and tepid demand.
15
Chennai
Market Overview
During the second quarter of 2015, new
residential unit launches declined sharply by 33%

over the previous quarter to nearly 2,100 units.
However, mid segment constituted the highest
proportion of launches during this quarter and
comprised nearly 92% of total units launched.
Southern and South-west quadrants of the city,
primarily Grand Southern Trunk (GST) Road and
Suburban (South) together comprised 59% of total
new launches as upcoming IT-ITeS office
developments and proximity to suburban business
hubs rendered these locations attractive for home
buyers. Launches in high-end segment rose by 26%

over the previous quarter, mainly due to increasing
number of new unit offerings in this segment in
quarterly uptick in net absorption for Grade A
Nungambakkam. On an overall basis, high-end
spaces which was noted at 529,700 sf. However,
segment comprised 8% of new unit launches.
dearth of new developments, mainly IT-SEZs slowed
Chennai witnessed sizeable new office supply of

nearly 1.3 msf during the second quarter of 2015,
comprising of IT parks (74%) and commercial office
down the expansion plans of few occupiers and

overall net absorption levels dipped by 11% over the
previous quarter.
spaces (24%). However, in line with the first quarter
Mall stock in Chennai remained static as supply
of 2015, no new supply of IT-Special Economic Zone
infusion remained absent for the sixth consecutive
(IT-SEZ) became operational. The share of Grade A
quarter. Limited leasing coupled with the exit of a
developments as a proportion of total supply
few big retailers, including anchor tenants from
increased from 27% in the first quarter to 74% at the
some malls in Chennai-CBD led to a 2.3 percentage
end of this quarter. This is primarily because a new
point rise in mall vacancy to 7.9% on a q-o-q basis.
block of a prominent IT Park became operational in
Owing to limited churn and modest demand, mall
Perungudi. Occupier demand, mainly from the IT-
rentals remained maintained status-quo across
ITeS sector, remained strong leading to a 7%
submarkets.
Trends & Updates

Nearly 1,600 new residential units spread across
GST Road (26%) and Rajiv Gandhi Salai-II (16%)
22 projects completed construction during this
accounted for the highest number of unit
period, a stark decline of 37% over the previous
completions with builders such as Khivraj Olympia,
quarter. Many developers delayed possession of
South India Shelters Pvt. Ltd and Vishram Builders
under construction projects to second half of the
being prominent amongst others who handed over
year due to several factors such as slow pace of
completed units to buyers. Rental and capital values
construction and high costs of building materials.
largely remained stable for all submarkets.

16
Average Capital Values High-end Segment (INR 000/sf)

Location
2009
2010
2011
2012
2013
2014
1Q 2015
Boat Club
18.0-20.0
18.0-23.0
20.0-25.0
23.0-27.0
R.A Puram*
13.0-15.0
13.0-16.5
14.0-17.0
Besant Nagar
NA
NA
Kotturpuram
NA
Adyar
2Q 2015
23.0-33.0
23.0-35.0
23.0-35.0
23.0-35.0
15.0-19.0
17.0-23.0
17.0-23.0
17.0-25.0
17.0-25.0
12.5-13.5
13.0-14.5
13.5-15.0
13.5-15.0
13.5-15.0
13.5-15.0
NA
12.0-14.0
14.0-16.0
14.0-20.0
14.0-20.0
14.0-20.0
14.0-20.0
5.5-9.5
8.0-12.0
11.5 - 13.5
13.0-14.5
14.0-17.5
14.0-17.5
16.0-17.5
16.0-17.5
Poes Garden**
14.5-18.0
14.5-20.0
17.5-24.5
18.5-25.0
20.5-28.0
20.5-33.0
23.0-33.0
23.0-33.0
Nungambakkam
13.0-16.0
13.0-16.5
13.0-17.0
17.0-20.0
14.0-25.0
14.0-25.0
14.0-25.0
14.0-25.0
Anna Nagar
6.0-9.0
7.5-10.5
8.0-11.5
12.0-14.0
12.0-17.0
12.0-17.0
12.0-17.0
12.0-17.0
Kilpauk
4.0-8.0
8.0-12.0
9.0-15.0
12.0-15.0
12.0-16.0
12.0-16.0
12.0-16.0
12.0-16.0

The time series have been adjusted to reflect the updated values
*RA Puram also includes Alwarpet and Abhiramapuram
**Poes Garden also includes Venus Colony and Kasturi Rangan Road

2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
Adyar
4.5 - 6.5
6.0 - 8.5
8.0 - 11.0
9.0 - 13.0
10.0 - 14.0
10.0 - 14.0
12.0 - 15.0
12.0 - 15.0
Rajiv Gandhi
Salai (Perungudi)
2.5 - 2.8
3.5 - 4.5
4.0 - 5.5
5.0 - 6.3
5.0 - 6.3
5.0 - 6.3
5.0 - 7.0
5.0 - 7.0
Velachery
3.5 - 4.0
3.5 - 5.0
3.5 - 5.5
4.5 - 6.5
6.0 - 8.0
6.0 - 8.0
6.0 - 8.0
6.0 - 8.0
T. Nagar
4.0 - 6.5
7.5 - 10.5
8.5 - 11.5
8.5 - 14.0
10.0 - 16.0
10.0 - 17.0
10.0 - 17.0
10.0 - 17.0
Mylapore
NA
NA
8.0 - 12.5
10.0 - 15.0
12.0 - 17.0
12.0 - 17.0
12.0 - 17.0
12.0 - 17.0
Mogappair
NA
NA
5.0 - 5.5
5.0 - 6.5
5.0 - 7.5
5.0 - 7.5
5.0 - 7.5
5.0 - 7.5
Kilpauk
4.5 - 6.0
6.0 - 8.0
7.5 - 9.5
9.0 - 12.0
9.0 - 12.0
No
availability
No
availability
No
availability
Location

The time series have been adjusted to reflect the updated values

New launches plummeted from 3,200 units over
overall launches as mid-segment units declined
the previous quarter to nearly 2,100 units by the end
quarterly by 36%. On an overall basis, 20 new
of June 2015. Whilst mid-segment continued to
projects were launched out of which apartments
dominate the maximum share of new unit launches,
constituted 89% of total new units, remaining
it also acted as a catalyst behind the sizeable dip in
constituting villa projects.
17
Project Name
Developer
Location
Number of Units*
Type
Emerald
Hallmark
Infrastructure
Chettipunniyam
860
Apartments
1 BHK: 710;
2 BHK: 942 to 1,100
Bollineni Hillside
Phase II
BSCPL
Infrastructure Ltd.
Perumbakkam
383
Apartments
1 BHK: 920 to 1,035;

2 BHK: 1,060 to 1,330;
2.5 BHK: 1,380 to 1,515;
3 BHK: 1,520 to 1,580
Optima Upgrade
Optima Homes Pvt. Ltd.
Avadi
180
Apartments
1.5 BHK: 595;

2 BHK: 765 to 1,010;
2.5 BHK: 1,040;
3 BHK: 1,140 to 1,470
Creations Genesis
Creations Promoters
Navalur
156
Apartments
1 BHK: 594 to 680;

2 BHK: 750 to 1,100;
3 BHK: 1,150 to 1,500
Frontier
ETA Star
Neikuppi
84
Villas
4 BHK: 5,000
Adria
Royal Splendour
Developers
Kovur
76
Apartments
1 BHK: 497 to 595;

2 BHK: 750 to 1,167;
3 BHK: 1,297 to 1,485
R.S. Orchid
R S Promoters &
Developers
Manimangalam
73
Villas
2 BHK: 1,450 to 1,578;

3 BHK: 1,722 to 1,795
VGN Presidency
VGN Developers
Nungambakkam
High Road
72
Apartments
3 BHK: 3,278 to 3,467
Akshaya Level Up
Akshaya Homes
Sterling Road
50
Apartments
3 BHK: 2,037 to 3,387
ETA Lilac Heights
ETA Star
Greenways Road
48
Apartments
3 BHK: 2,498 to 4,273
Nest Njoy
Nest Builders &

Promoters
East Coast Road
45
Villas
1 BHK: 530;
2 BHK: 970;
3 BHK: 1,545
Poomalai Varishtaa
Poomalai Housing
Medavakkam
37
Villas
3 BHK: 1,505 to 1,984;

4 BHK: 2,075 to 2,420
Violet
ECO Bay Builders &

Developers
Thiruvallur
32
Apartments
2 BHK: 950 to 1,100;

3 BHK: 1,250
Lemongrass
Green Leaves Estates

& Hotels
Porur
16
Apartments
1 BHK: 614 to 652;

2 BHK: 934 to 993;
3 BHK: 1,063 to 1,389
Queen's Court
Selvi Constructions
Kottivakkam
12
Apartments
2 BHK: 973 to 1,054;

3 BHK: 1,564 to 1,604
Malles Vijayadhwajam
Malles Constructions
T. Nagar
Apartments
3 BHK: 1,481 to 1,810
Peacock Enclave
Dev Apartments
Neelankarai
Villas
4 BHK: 3,050
MM Seaview
MS Charan Builders
Kottivakkam
Apartments
3 BHK: 1,331 to 2,674
Casamia
Selvi Constructions
Kottivakkam
Apartments
3 BHK: 1,562 to 2,247
Oyester Rojavanam
Oyester Homes
Ayanavaram
Apartments
1 BHK: 600;
2 BHK: 780

Nearly 25,000 units are currently under
50% of such units are spread across suburban and
construction across various segments that may be
peripheral submarkets of GST Road, Rajiv Gandhi
available for possession by the end of this year. More
Salai (I) and II) and suburban areas near OMR and
than 81% of such units are in the mid segment,
Velachery.
followed by the affordable segment (13%). Nearly

18

As new supply influx remained sparse in
0.7 percentage point uptick in overall vacancy that
prominent suburban submarkets, existing
rose to 14.4% at the end of this quarter. Weighted
availabilities in Peripheral South-west (42%) and
average rentals increased by 4% over the previous
North-west (17%) witnessed maximum share in
quarter largely due to an 8% rental uptick in
Grade A net absorption as demand remained
Suburban South as premium spaces started quoting
healthy, despite slow execution of expansion plans
higher rentals in the wake of limited vacancy.
by some large occupiers. Huge supply influx led to a
Retail Sector
Strong demand for both established main streets
retailer categories fuelled demand for main street
and standalone formats from existing retailers as well
locations; rentals remained stable as demand was
as new entrants to the city culminated in some large
fulfilled at rates similar to the previous quarter.
transactions. Primarily jewellery and hypermarket
Outlook
Nearly 3,800 residential units are currently under
cause an upward bias in overall vacancy in the city.
soft launch and maybe launched during the latter half
Modest availability of IT-SEZ developments coupled
of the year. Improvements in physical infrastructure,
with continual demand from occupiers may lead to
such as inauguration of parts of Phase I of Metro Rail
rental uptick in select submarkets such as Suburban
and road widening of the East Coast Road (ECR) may
South and South-west.
act as a catalyst and help improve new launches

during the next quarter, especially in locations such as
Alandur, Koyambedu, Guindy, Kodambakkam and
parts of East Coast Road (ECR).
Whilst no new mall influx is expected during the

next quarter, mall vacancy may revise downwards as
demand from apparels and food and beverages
(F&B) categories may improve going forward.
During the next quarter, supply infusion in office
However, rentals may hold steady. In the wake of
sector may remain high as new developments
healthy demand, select main streets such as Anna
admeasuring nearly 1.3 msf may become
Nagar 2nd Avenue and Pondy Bazar may witness an
operational. Approximately 87% of the anticipated
upward rental bias due to retailers preference for
new supply belongs to Peripheral South that may
these locations.
19
Delhi - National Capital Region (NCR)

Market Overview
Delhi-NCR witnessed launch of approximately
6,900 units in the second quarter of 2015, registering

a 1.5 times increase over the previous quarter. The
surge in new unit launches is due to large-scale
projects that were launched in Sohna, Gurgaon during
the quarter. Capital values maintained status quo
during the quarter across most submarkets in DelhiNCR. With stable demand, rental values also remained
stable across all submarkets.
In the second quarter of 2015, Grade A office
supply in Delhi-NCR was recorded at 2.5 msf, a 20.8%

increase from the previous quarter. As compared to
the first quarter of 2015, net absorption increased by
increased marginally by 0.1 percentage points to
111% this quarter and was noted close to 1.3 msf. No
14.5% during the quarter. Rental values in malls as
pre-commitments were noted during the second
well as main street locations remained stable from
quarter of 2015. Rental values firmed up significantly
the previous quarter. Main street locations across
in the submarkets of Gurgaon CBD and Noida.
Khan Market, Greater Kailash and South Extension
No new mall supply was added during the second
witnessed healthy take up of space.
quarter of 2015. However, overall mall vacancy
Trends & Updates

Due to subdued transaction activity, capital values
previous quarter amidst strong demand from
across all segments in various submarkets remained
investors. The notification of Land Pooling Policy by
stable from the previous quarter. Capital values in the
Delhi Development Authority is expected to augment
luxury segment in Gurgaon increased by 3% from the
new supply in submarkets of Delhi.
20

2012
2013
2014
1Q 2015
2Q 2015
South-West
50.0 - 60.0
45.0 - 60.0
42.5 - 56.0
42.5 - 57.5
42.5 - 57.5
South-East
25.0 - 45.0
25.0 - 40.0
25.0 - 38.0
25.0 - 40.0
25.0 - 40.0
South Central
27.0 - 50.0
27.0 - 50.0
27.0 - 46.0
27.0 - 48.0
27.0 - 48.0
Central
60.0 - 80.0
60.0 - 90.0
60.0 - 90.0
60.0 - 90.0
60.0 - 90.0
Gurgaon
10.5 - 32.0
11.0 - 27.5
11.0 - 25.0
11.0 - 25.0
11.0 - 26.0
Noida
6.2 - 8.1
7.0 - 8.5
7.5 - 9.0
7.0 - 8.5
7.0 - 8.5
Location

Average Capital Values Mid Segment (INR '000/sf)

2012
2013
2014
1Q 2015
2Q 2015
South-East
25.0 - 30.0
25.0 - 30.0
22.0 - 27.0
22.5 - 27.5
22.5 - 27.5
South Central
25.0 - 35.0
25.0 - 35.0
25.0 - 35.0
25.0 - 35.0
25.0 - 35.0
Gurgaon
6.8 - 10.5
7.5 - 11.5
8.0 - 10.0
7.5 - 9.5
7.5 - 9.5
Noida
4.3 - 6.2
5.0 - 6.0
5.0 - 6.5
5.0 - 6.0
5.0 - 6.0
Location

Key to Locations:
High-end Segment:
Mid Segment :
South-west: Shanti Niketan, Westend, Anand Niketan,

Vasant Vihar, etc.
South-east: New Friends Colony, Kalindi Colony, Ishwar

Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave, etc.
South-east: Friends Colony East, Friends Colony West,

Maharani Bagh, Greater Kailash I, Greater Kailash II, etc.
South-central: Uday Park, Green Park, Saket, Asiad Village,

Geetanjali Enclave, Safdarjung Enclave, Sarvapriya Vihar,
Panchsheel Enclave, Navjeevan Vihar, etc.
South-central: Defence Colony, Anand Lok, Niti Bagh,

Gulmohar Park, Hauz Khas Enclave, Safdarjung
Development Area, Mayfair Gardens, Panchsheel Park,
Soami Nagar, Sarvaodaya Enclave, etc.
Central: Jorbagh, Golf Links, Amrita Shergil Marg,
Aurangzeb Road, Prithviraj Road, Sikandara Road, Tilak
Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar,
Nizamuddin, Tees January Marg, Chanakyapuri, etc.
Gurgaon-Luxury: Golf Course Road (Sectors 26, 26A, 27,
28, 42, 43, 53-56)
Gurgaon: Sohna Road (Sectors 38, 47-49), Southern

Peripheral Road (Sectors 68-70, 70A, 71-73), New Gurgaon
(Sectors 76-81, 81A, 82, 82A, 83-86, 88, 88A, 88B, 89,
89A, 90-93, 95, 95A and 95B) Dwarka Expressway
(Sectors 99, 99A, 102, 102A, 103-110, 110A, 111-114) and
Sohna
Noida: Sectors 50, 74-79, 82, 83, 110, 112, 115-121, 134, 135,
137, 143, 150, 151 and 168), Greater Noida and Yamuna
Expressway
Gurgaon-High end: Golf Course Road (Sectors 24-26,

26A, 27, 28, 42, 43, 53-56), Mehrauli-Gurgaon Road
(Sectors 24-26) Golf Course Extension Road (Sectors 5863, 63A, 65-67 and 67A), Sohna Road (Sectors 38, 4749), Central Gurgaon (Sectors 40, 41, 44-46, 50-52 and
57) and Dwarka Expressway (Sectors 99, 99A, 102, 102A,
103-110, 110A, 111-114)
Noida: Sectors 34-37, 39-41, 44, 50, 51, 92, 93, 96-98,
128 and 133
21

With approximately 6,900 unit launches, the
affordable segment in Sohna and the mid segment
second quarter of 2015 witnessed a 1.5 times
launches in the submarkets of Southern Peripheral
increase in launches over the previous quarter.
Road, New Gurgaon and Dwarka Expressway. Noida
Nearly 62% of units launched during the quarter
Extension continued to witness launches in
were in the affordable segment and the remaining in
affordable segment while launches along Noida
the mid segment. Gurgaon accounted for around
Expressway were in the mid segment.
57% of the total unit launches, with a majority in the
Project Name
Developer
Location
Number of Units* Type
Resortico
CHD Developers
Sector 34, Sohna
1,379
Apartments
1 BHK: 709
Hill Town
Supertech
Sector 2, Sohna
1,324
Apartments
2 BHK: 1,200 to 1,440;

3 BHK: 1,685 to 2,225;
4 BHK: 2,695
Ace Parkway
Ace Group
Sector 150, Noida
970
Apartments
2 BHK: 1,310 to 1,360;

3 BHK: 1,750 to 2,460;
4 BHK: 3,220
Ophira
Mangalya Group
Sector 1, Greater
Noida (West)
924
Apartments
2 BHK: 1,025 to 1,250;

3 BHK: 1,455
M3M Marina
M3M
Sector 68, Gurgaon
760
Apartments
2 BHK: 1,304;
3 BHK: 1,595 to 1,914
Ratan Pearls
Ratan Buildtech
Sector 16, Greater

Noida (West)
624
Apartments
2 BHK: 1,035 to 1,189;

3 BHK: 1,370 to 1,900
F Premiere
Home & Soul
Yamuna Expressway
412
Apartments
2 BHK: 1,490 to 1,640;

3 BHK: 1,779 to 1,835;
4 BHK: 4,008
37th Avenue
Imperia Structures
Sector 37C, Gurgaon
300
Apartments
1 BHK: 600;
2 BHK: 900
Icon
Godrej Properties
Sector 88A, Gurgaon
200
Apartments
2 BHK: 1,617 to 1,630;

3 BHK: 1,365;
4 BHK: 1,595

Developers continued offering phase-wise
vacated its stay on the construction work on the
possession in projects across submarkets. Under-
expressway. A 2-km stretch of Dwarka Expressway
construction projects in Noida Extension, which
was caught in land acquisition litigation and the
were stuck in petitions challenging the land
court had earlier ordered a stay on construction
acquisition, received a boost after the Supreme
activity of the expressway. However, the National
Court quashed all petitions. Projects on Dwarka
Green Tribunal imposed a ban on construction
Expressway also witnessed healthy pick-up in
activity on several projects for flouting pollution
construction activity after the State High Court
norms in Noida Extension.
22

Grade A office supply in Delhi-NCR was recorded
Led by a surge in supply along with high
at 2.5 msf in the second quarter of 2015, a 20.8%
relocations and consolidation by occupiers, the
increase from the previous quarter. Commercial
overall vacancy in Grade A developments increased
developments accounted for 87.2% of this new
by 0.7 percentage points and was noted at 27.8%.
supply followed by IT-SEZs with a 12.8% share. The
The weighted average Grade A rentals in Gurgaon
quarter witnessed net absorption of over 1.3 msf in
CBD increased by over 4.5% amidst strong demand
Grade A developments, a 111% increase from the
and limited availability. Weighted average rentals in
previous quarter. The IT-ITeS sector had the highest
Noida increased by over 27.2% due to fresh addition
share (67%), followed by healthcare (7%) and the
of premium spaces at higher rentals.
consulting sectors (5%). No pre-commitments were

noted during the quarter.
Retail Sector
Overall mall vacancy levels was recorded at
in rental values maintaining status quo during the
14.5%, increasing by 0.1 percentage point over the
second quarter of 2015, although rentals in select
previous quarter. The increase was primarily due to
prominent malls increased. Apparels, F&B and
tepid demand and exit by several vanilla retailers in a
footwear brands, which continued to strengthen
mall in West Delhi. The demand for space in malls
their presence across various locations, mainly
was driven mainly by retailers from food and
drove the demand in main street locations. Few of
beverage (F&B), apparel and accessories brands.
the brands that took up space during the quarter
Some of these retailers include, Carls Jr., H&M, W
include Farzi Caf, Caf Coffee Day, Bear Caf, Nike,
and GAP to name a few. Low levels of churn resulted
W and Madame.
Outlook
Considering that currently, only a few projects
this surge in supply is likely to lead to an increase in
are in pre-launch stage, new unit launches are likely
overall vacancy levels. Rental values are expected to
to decline in the next quarter. As transaction activity
further strengthen in Gurgaon CBD due to strong
is likely to remain subdued, capital values across
demand and limited availability.
submarkets in Delhi-NCR are expected to remain

stable during the next quarter. With the Delhi
government pushing for re-categorization of areas
for demarcation of circle rates, a revision is expected
soon. Several projects nearing completion in the
submarkets of Noida and Gurgaon are expected to
begin possession in the coming quarters.
Nearly 3.6 msf of new mall supply is scheduled for

completion in the next quarter across Noida, South
Delhi and West Delhi, which is likely to put pressure
on rentals owing to increased vacancy levels. During
the next quarter, rentals across most main street
locations are expected to remain stable. Prominent
main street locations such as Connaught Place and
Approximately 3.8 msf of office space is
Sector 29, Gurgaon will continue to see strong
scheduled for completion during the next quarter,
interest from retailers especially from F&B segment.
primarily in Gurgaon. Despite sustained absorption,
23
Hyderabad
Market Overview
During the second quarter of 2015, Hyderabad
witnessed the launch of nearly 1,140 residential

units, a decline of 66% over the previous quarter
due to the absence of large township projects that
were witnessed in the previous quarter. Of the total
units launched, Madhapur, Gachibowli in the northwestern quadrant of the city accounted for 71%
share. Land availability coupled with ease of access
to prominent business parks via the Outer Ring Road
continued to act as catalysts for the sizeable number
of launches in this submarket. Mid segment unit
offerings comprised 56% of the overall new

launches followed by high-end segment. Whilst the
high-end segment retained a high proportion of total
absorption which stood at 260,700 sf at the end of
new launches, it declined by 85% as compared to the
this quarter.
last quarter. Rental and capital values largely
For the second consecutive quarter, no new mall
maintained status-quo during this quarter as
became operational in the city and demand for mall
existing availabilities outpace current demand levels
spaces remained at par with last quarter. Steady
across submarkets.
leasing coupled with absence of new mall supply led
In the office sector, new supply declined
to a 0.35 percentage point decline in mall vacancy to
quarterly by 56% to nearly 450,800 sf at the end of
7.0% at the end of this quarter. Modest churn and
this quarter. The entire new supply comprised of
low leasing kept mall rentals largely unchanged from
Grade B and C developments as all proposed Grade A
the previous quarter. However, falling footfalls and
spaces scheduled to become operational during this
low demand led to a 20% quarterly decline in mall
quarter were deferred to later periods due to
rentals in NTR Gardens. Similarly, Somajiguda
construction delays. Dearth of new supply coupled
witnessed a 14% dip in quarterly mall rental due to
with limited leasing and increasing relocations led to
competition from neighboring retail submarkets
a sharp quarterly decline of 58% in Grade A net
that attracted higher number of footfalls.
Trends & Updates

During the second quarter of 2015, most projects
remainder of the year. Prominent amongst those
remained under construction with no prominent
would be in Madhapur, Gachibowli, Kukatpally,
completions in almost all submarkets. Slower pace of
Miyapur and Nizampet. These submarkets together
construction amidst waning housing demand led to
are expected to witness supply of nearly 4,800 ready
most project completions being scheduled for the
residential units in the latter half of 2015.
24

2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
Banjara Hills
5.8 - 6.5
6.0 - 7.2
6.4 - 7.5
6.5 - 7.5
7.0 - 9.5
7.0 - 9.5
7.0 - 10.0
7.0 - 10.0
Jubilee Hills
5.5 - 6.3
6.0 - 7.0
6.2 - 7.2
6.1 - 7.2
6.5 - 9.5
6.5 - 9.5
7.0 - 10.0
7.0 - 10.0
Himayatnagar
3.3 - 4.0
3.7 - 4.0
3.7 - 4.2
3.6 - 4.2
4.0 - 5.5
4.0 - 5.5
4.0 - 5.5
4.0 - 5.5
West & East Marredpally
3.3 - 3.8
3.5 - 4.0
3.6 - 4.3
3.6 - 4.3
4.0 - 5.5
4.0 - 5.5
4.0 - 5.5
4.0 - 5.5
Begumpet, Somajiguda
3.9 - 4.5
4.1 - 4.5
4.3 - 4.8
4.3 - 4.7
4.5 - 5.5
4.5 - 5.5
4.5 - 5.5
4.5 - 5.5
Madhapur, Gachibowli
3.5 - 4.3
3.8 - 4.9
3.9 - 5.3
4.1 - 5.3
4.5 - 6.0
4.5 - 6.0
4.5 - 6.0
4.5 - 6.0
Kukatpally
3.3 - 4.0
3.5 - 4.5
3.8 - 5.1
3.8 - 5.1
4.0 - 6.0
4.0 - 6.0
4.0 - 6.0
4.0 - 6.0
Miyapur, Nizampet
2.6 - 3.3
2.7 - 3.4
2.8 - 3.5
2.9 - 3.5
2.9 - 3.5
2.9 - 3.5
2.9 - 3.5
2.9 - 3.5
Location

Average Capital Values - Mid Segment (INR 000/sf)

2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
Banjara Hills
3.6 - 4.2
3.6 - 4.5
3.8 - 4.6
3.8 - 4.8
4.0 - 5.0
4.0 - 5.2
4.0 - 5.2
4.0 - 5.2
Jubilee Hills
3.5 - 4.0
3.7 - 4.0
4.0 - 4.2
4.0 - 4.2
3.8 - 4.4
3.8 - 4.4
3.8 - 4.5
3.8 - 4.5
Himayatnagar
2.7 - 3.0
2.7 - 3.5
2.7 - 3.7
2.8 - 3.6
3.0 - 3.8
3.0 - 3.8
3.0 - 3.8
3.0 - 3.8
West & East Marredpally
2.5 - 2.8
2.7 - 3.0
2.8 - 3.2
2.7 - 3.2
3.0 - 3.5
3.0 - 3.5
3.0 - 3.5
3.0 - 3.5
Begumpet, Somajiguda
2.6 - 3.1
2.8 - 3.5
2.9 - 3.6
2.8 - 3.6
3.0 - 4.0
3.2 - 4.0
3.2 - 4.0
3.2 - 4.0
Madhapur, Gachibowli
2.5 - 3.1
2.6 - 3.4
2.8 - 3.5
3.0 - 3.8
3.5 - 4.2
3.6 - 4.5
3.8 - 4.6
3.8 - 4.6
Kukatpally
2.4 - 2.9
2.7 - 3.2
2.9 - 3.5
2.9 - 3.6
3.1 - 4.0
3.3 - 4.0
3.3 - 4.0
3.3 - 4.0
Miyapur, Nizampet
1.8 - 2.5
1.8 - 2.5
2.4 - 3.0
2.2 - 3.4
2.7 - 3.4
2.8 - 3.6
2.9 - 3.6
2.9 - 3.6
Location


Nearly 1,140 units were launched during Q2 2015,
due to which a 85% q-o-q decline came to fore this
noting a sharp dip of 66% over the previous quarter.
quarter as limited number of units were launched in
Unlike the previous quarter when no units in mid
this segment.
segment were launched, this quarter witnessed the

launch of more than 600 new units in the mid
segment. Whilst no units were launched in the
affordable segment, new launches in the mid and
high-end segment constituted 56% and 44% share
respectively. Interestingly, all new unit launches in
the previous quarter catered to high-end segment,
More than 96% of the new units catered to the

apartment category and were launched across
Miyapur, Nizampet and Madhapur, Gachibowli
submarkets. Connectivity to offices and IT parks
nearby continued to drive residential demand in
these submarkets.
25
Project Name
Developer
Location
Number of Units*
Type
Aditya Empress Towers
Aditya Construction
Company
Gachibowli
506
Apartments
3 BHK: 1,700
Aditya Capitol Heights
Aditya Construction
Company
Gachibowli
300
Apartments
3 BHK: 2,400
Aditya Wiz Lagoon
Sri Aditya Homes
Nizampet
290
Apartments
2 BHK: 1,269;
3 BHK: 1,857
Giridhari Onyx Villas
Giridhari Constructions
Appa Junction
44
Villas
3 BHK: 2,785

Currently, there are more than 26,000
consists of locations such as Madhapur, Gachibowli,
residential units under construction in various
Miyapur and Kukatpally, forms at least 63% of the
submarkets which are expected to be available for
total residential units set for completion by the end
possession by December 2015. Of the total units
of this year. Concentration of mid segment unit
under construction, nearly 51% cater to the mid
offerings dominated the total units, at nearly 64% of
segment followed by the affordable segment (25%).
total expected residential supply in these pockets.
The north-western quadrant of the city, which

Majority of the new supply was concentrated in the
percentage point rise in Grade A vacancy to 13.8% at
suburban locations of Gachibowli (67%) and
the end of this quarter. Weighted average rentals in
Madhapur (21%). At 1.1 msf, the total leasing declined
Prime suburban submarkets witnessed nearly 5%
by 36% over the previous quarter as fewer new leases
quarterly rental uptick as available spaces started
were signed during this quarter. IT-ITeS sector
quoting higher rentals for new spaces released in
continued to be the prime demand driver for office
some buildings. Madhapur, too, recorded an upward
space absorption with nearly 57% share in total Grade
rental bias of 3% as quoted rentals increased in this
A gross absorption. Lack of new supply coupled with
submarket in the wake of continual demand.
modest absorption levels led to 0.8 quarterly
Retail Sector
Established main streets such as Jubilee Hills,
sized floor plates led to a 4% quarterly rental uptick.
Banjara Hills and Himayathnagar witnessed healthy
However, rentals remained stable for most other
demand from apparels and food and beverages
submarkets as existing demand was fulfilled at
(F&B) segments. In Himayathnagar, consistent
prevailing rental rates.
demand coupled with limited availability of optimum
26
Outlook
New residential unit launches may rise steadily in
the next quarter as more than 700 units are currently in
soft-launch stages awaiting formal launch. However,
capital and rental values may hold steady across
segments and submarkets as existing housing
inventory outpaces current demand from end-users.
leasing going forward. The rentals are expected to hold

steady across most markets.
A new mall admeasuring 100,000 sf may become
operational during the next quarter in Kothaguda and
has received healthy enquiries from apparels and F&B
segments. Limited availability of quality mall spaces and
New office supply of nearly 2.9 msf across all grades
low enquiries may keep mall rentals steady during the
is expected to become operational during the next
short term. Main street rentals may also remain
quarter. However, vacancy may revise upwards
unwavering in the wake of steady demand.
marginally in the wake of high supply and moderate
27
Jaipur
Market Overview
Approximately 650 units were launched in Jaipur
during the second quarter of 2015, a decline of 46%

from the previous quarter. The quarter witnessed
new launches primarily in the high-end and luxury
segment. The submarket of Kalwar Road witnessed
the highest number of new unit launches followed by
Sidhart Nagar and Mansarovar. With metro getting
operational, capital values in the submarkets of Civil
Lines and Mansarovar witnessed increase in capital
values in the range of 4-5% during the quarter.
New office supply admeasuring 80,000 sf was
added in the second quarter of 2015. Transaction

activity remained stable during the quarter with
(M.I.) Road and Malviya Nagar. Demand for mall
continued demand IT-ITeS and manufacturing
space remained tepid during the quarter. The
companies. Rentals maintained status quo from the
demand was primarily driven by apparel and F&B
previous quarter, across all submarkets.
retailers in the main street. Rentals across malls and

quarter of 2015. Transaction activity was observed
main street locations maintained status quo during

the quarter.
primarily in the main street locations of Mirza Ismail
Trends & Updates

Capital values of the high-end segment properties
In the mid segment, whilst capital values remained
increased in the range of 4-5% in the submarkets of C-
stable in most submarkets, Mansarovar witnessed an
Scheme and Civil Lines during the second quarter of
increase of 5% primarily due to increased buyer's
2015, primarily due to improvement of infrastructure.
interest with commencement of metro service.
28
Average
Average
Capital
Capital
Values
Values
High-end
High End
Segment
(INR 000/sf)
(INR)
Location
2Q 2014
3Q 2014
4Q 2014
1Q 2015
2Q 2015
C- Scheme
8,000-10,500/sf
8,000-11,000/sf
8,000-11,000/sf
8,200-11,200/sf
8,500-12,000/sf
Bapu Nagar
7,000-9,000/sf
7,000-9,000/sf
7,000-9,000/sf
7,000-9,000/sf
7,000-9,000/sf
Civil Lines
80,000-100,000/sqyd
80,000-110,000/sqyd
80,000-115,000/sqyd
82,500-115,000/sqyd
85,000-120,000/sqyd
75,000-100,000/sqyd
75,000-105,000/sqyd
77,500-105,000/sqyd
77,500-105,000/sqyd
Malviya Nagar 75,000-95,000/sqyd

Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villas
*sqyd: Square Yard
Average
AverageCapital
CapitalValues
ValuesMid
High
Segment
End (INR(INR)
000/sf)
Location
2Q 2014
3Q 2014
4Q 2014
1Q 2015
2Q 2015
Malviya Nagar
60,000-75,000/sqyd
60,000-75,000/sqyd
65,000-75,000/sqyd
65,000-77,500/sqyd
65,000-77,500/sqyd
Vaishali Nagar
2,900-3,400/sf
2,900-3,600/sf
2,900-3,600/sf
3,000-3,600/sf
3,000-3,600/sf
Mansarovar
3,000-3,500/sf
2,800-3,800/sf
2,800-3,850/sf
2,800-3,850/sf
3,000-4,000/sf
Jagatpura
2,900-3,300/sf
2,900-3,400/sf
2,900-3,500/sf
2,900-3,500/sf
2,900-3,500/sf

Note: The above values for mid segment apartments typically include units of 1,600-2,000 sf, both apartments and villas
*sqyd: Square Yard

In the second quarter of 2015, new project
ticket price of new launches in the high-end segment
launches were primarily in the western and southern
was in the range of INR 0.4-0.7 crore while for the
peripheries of the city. Nearly 650 units were
luxury segment it was INR 0.9-5.1 crore. The Basic Sale
launched, of which 34% were on Kalwar Road and
Price (BSP) of the new launches ranged from
24% in Sidhart Nagar. The quarter witnessed launches
INR 3,100-8,500/sf.
primarily in the high-end and luxury segment. The

Project Name
Developer
Location
Number of Units*
Type
Gokul Residency
Guman Builders
Kalwar Road
216
Apartments
2 BHK: 989 to 1,323;

3 BHK: 1,610 to 1,795
Pamposh
Aashish Group
Sidhart Nagar
156
Apartments
1 BHK: 770;
2 BHK: 1,064 to 1,208;
3 BHK: 1,417
Royal Tatvam
Kotecha Group
Mansarovar
120
Apartments
2 BHK: 1,163 to 1,233;

3 BHK: 1,499 to 1,782
AIR
RidhiRaj Builders
Sodala
86
Apartments
3 BHK: 2,170 to 2,564;

5 BHK: 4,103 to 6,241
Veto's Verve
Veto Group
Jawahar Nagar
48
Apartments
3 BHK: 1,460 to 1,500
Aralyas
RidhiRaj Builders
Govind Marg
18
Apartments
4 BHK: 2,705;
6 BHK: 5,410
29

In Jaipur, six projects began offering possession
which witnessed completions during the quarter.
during the second quarter of 2015. These are
The next quarter is expected to witness completions
primarily small scale projects (total number of units
primarily in the submarket of Ajmer Road, Tonk Road
ranging from 9-48 units). Durgapura, Sanganer, C-
and Jagatpura.
Scheme and Vaishali Nagar are the submarkets

New office supply admeasuring 80,000 sf was
for Secondary Business District (SBD) at INR 35-
added during the second quarter of 2015. Rental values
50/sf/month. IT-ITeS and manufacturing companies
in the Central Business District (CBD) of MI Road and C-
continued to have a majority share in office space take-
Scheme remained stable at INR 65/sf/month and that
up during the quarter.
Retail Sector
apparels and F&B retailers during the quarter.
quarter of 2015. Demand for mall spaces remained
Rentals remained stable from the previous quarter
tepid during the quarter. Main street locations of MI
across malls and main street locations.
Road and Malviya Nagar witnessed interest from
Outlook
Capital values in the residential sector are likely
No new mall supply is expected to be added in the
to remain stable going ahead with no visible demand
next quarter. Rentals are expected to remain stable
trigger and huge number of under-construction
in malls due to existing high vacancies. Main street
projects in the peripheral submarkets. However, in
location of MI road, Malviya Nagar and Vaishali
the the central markets such as Civil Lines and
nagar are expected to witness continued interest
suburban markets such as sodala and mansarovar
from retailers.
capital values are expected to increase due to the

new operational metro. Number of new launches is
likely to remain stable during the next quarter.
No new office space is expected to be added
during the next quarter. Rental values are expected
to remain stable due to tepid demand.
30
Kolkata
Market Overview
Residential unit launches in the second quarter of
2015 almost doubled (92%) over the previous

quarter, with about 4,200 units launched during the
quarter. The steep increase was primarily due to
healthy launch activity in locations such as BT Road,
Barasat and Madhyamgram in North-peripheral
submarket, Mid segments share increased by 3.0
percentage points over the previous quarter to 81%,
while that of high-end segments share fell to 10%
against 23% in the quarter ago. Capital values in mid
segment appreciated by 2-3% on q-o-q basis across

most submarkets due to steady demand especially in
under-construction projects.
Commercial office sector saw total supply addition
Retail sector continued to witness healthy leasing
of 233,000 sf in Q2 2015, an increase of 30% over the
activity on main streets during Q2 2015, whilst leasing
previous quarter. However, Grade A supply declined by
activity in malls remained subdued like that of the
52% on q-o-q basis as only 55,000 sf was added
previous quarter. No new mall supply was witnessed
during the quarter. Overall net absorption during the
as about 638,000 sf of mall supply was deferred,
quarter was at 145,000 sf, a decline of 50% on q-o-q
which resulted in mall stock remaining unchanged
basis due to subdued demand. Overall vacancy levels
at 3.87 msf. Overall mall vacancy increased by 0.2
at the end of Q2 2015 was recorded at 33.2%, a minute
percentage points over the previous quarter to 3.3%
increase of 0.1 percentage points over the previous
as some retailers exited on lease expiry. Telecom,
quarter. Rental values across submarkets witnessed a
apparels and electronics were the most active
decline of 0.5-1.3% range over the previous quarter
segments during the quarter. Rental values remained
due to low demand and high vacancy.
stable during the quarter across main streets and malls.
Trends & Updates

In Q2 2015, around 1,800 units were completed,
segments. Nearly half (51%) of the completed units
almost half of the units completed in the previous
were concentrated in Rajarhat in North-east
quarter as project completion was deferred to
submarket where majority of the under-
subsequent quarters due to slow pace of
construction projects are located. North (17%) and
construction. Majority of the units completed during
North-peripheral (10%) submarkets accounted for
the quarter were in the mid segment (94%), while
27% share of the total completed units, followed by
the remaining were in the high-end and luxury
South-peripheral submarket with a 13% share.
31
Average Capital Values High-End Segment (INR 000/sf)

2014
1Q 2015
7.5 - 13.0
7.5 - 13.0
7.5 - 13.0
7.5 - 13.0
10.0 - 18.0
12.5 - 18.5
12.5 - 18.5
12.5 - 18.5
12.5 - 18.5
5.8 - 9.2
5.8 - 9.5
6.0 - 10.5
6.2 - 11.0
6.2 - 11.0
6.2 - 11.5
8.9 - 13.0
10.0 - 15.0
10.0 - 15.0
12.0 - 17.0
12.0 - 17.0
12.0 - 17.0
12.0 - 17.0
7.2 - 10.0
8.0 - 12.5
9.0 - 15.0
10.0 - 17.0
12.0 - 19.5
12.0 - 19.5
12.0 - 19.5
12.0 - 19.5
East
4.0 - 5.2
4.0 - 5.5
4.5 - 6.0
4.5 - 6.8
5.0 - 7.7
5.0 - 7.7
5.0 - 7.7
5.0 - 7.7
North - East
3.0 - 4.0
3.2 - 4.5
3.5 - 5.0
3.8 - 5.7
4.2 - 6.5
4.3 - 6.5
4.3 - 6.5
4.3 - 6.5
2009
2010
South
4.8 - 5.9
5.3 - 6.8
6.3 - 8.5
7.0 - 12.0
South - Central
8.5 - 9.6
9.5 - 13.0
10.0 - 18.0
South - East
4.5 - 5.7
4.5 - 8.0
South - West
8.6 - 9.8
Central
Location
2011
2012
2013
2Q 2015


2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
South
2.7 - 3.9
3.2 - 4.5
3.8 - 5.5
3.8 - 5.5
3.8 - 6.5
4.0 - 6.7
4.0 - 6.7
4.0 - 6.7
South - Central
4.2 - 5.3
4.5 - 6.0
5.5 - 8.0
5.5 - 8.0
5.8 - 8.8
5.9 - 8.9
5.9 - 8.9
5.9 - 9.2
South - East
2.4 - 2.8
2.5 - 3.2
2.8 - 4.5
2.8 - 4.5
2.9 - 5.0
3.0 - 5.2
3.0 - 5.2
3.0 - 5.5
North - East
1.9 - 2.2
2.2 - 2.7
2.4 - 3.0
2.4 - 3.5
2.7 - 4.0
2.9 - 4.1
2.9 - 4.1
2.9 - 4.2
North
1.8 - 3.4
2.2 - 4.7
2.8 - 5.2
2.8 - 5.2
3.0 - 5.8
3.1 - 6.0
3.1 - 6.0
3.1 - 6.2
Location

Key to Locations:
High-end Segment:
Mid segment:
South: Southern Avenue, Hindustan Park, Triangular

Park, Lake Terrace.
South: Golf Green, Tollygunge, Lake Gardens, Jodhpur Park
South Central: Ballygunge, Queens Park, Rainy Park,

Gurusaday Road, Ballyguange Circular Road, Dover Lane.
South-East: EM Bypass - Science City, Christopher Road,
Pancha Sayar.
South-West: Alipore Park Road, Ashoka Road, Burdwan
Road, Belvedere Road.
Central: Park Street, Camac Street, Shakespeare Sarani,
Minto Park, Elgin Road, Lee Road, Loudon Street, Rowdon
Street.
South-central: Deshpriya Park, Hazra Road, Bhawanipur

South-east: Ajoy Nagar, Hiland Park, PA Shah Connector
North-east: Rajarhat, Rajarhat Chowmatha
South-west: Tollyguange Circular Road, New Alipore,
Behala, Jones Lang Sarani
North: Jessore Road, Ultadanga, Shyambazar, Bagbazar,
Girish Park, Manicktala, Dum Dum
North peripheral: BT Road, Barasat, Madhyamgram,
Sodepur
North: Kankurgachi, Lake Town, VIP Road, Ultadanga,

Narkeldanga Main Road
South peripheral: Garia, Narendrapur, Sonarpur,
East: Salt Lake
South-west peripheral**: Joka, Maheshtala, Budge

Budge, Thakurpukur
North-East: New Town, Rajarhat

32

With nearly 4,200 new residential unit launches
Road and Old Delhi Road, the North-peripheral
during the second quarter of 2015, launch activity
market is turning into an attractive opportunity for
almost doubled (92%) over the previous quarter.
residential developments. Mid segment accounted
This was primarily due to significant rise in launch
for the highest (81%) share in total new unit
activity in locations such as BT Road, Barasat and
launches up from 78% in the previous quarter.
Madhyamgram in North-peripheral submarket,
Though number of units launched in high-end
which accounted for highest (32%) share in total
segment increased over the previous quarter, its
unit launches as government fast-paced project
share declined to 10% as against 23%. This quarter
clearances. Also, more number of developers are
also saw launch of an ultra-luxury project in a prime
expanding their presence in the residential sector in
location in Central Kolkata, which once complete
this region which used to be primarily an industrial
would be the tallest building in the East India.
area. With industrial activity shifting to Bombay
Project Name
Developer
Location
Number of Units*
Type
The Rainforest
(Blocks 4-6, 10-14)
Mounthill Realty
Rajarhat
654
Apartments
2 BHK: 923 to 1,008;

3 BHK: 1,160 to 1,417;
4 BHK: 1,711 to 1,738
Adwita (Phase 1)
Tata Value Homes
BT Road
384
Apartments
1 BHK: 770 to 804;

2 BHK: 897 to 992;
3 BHK: 1,170 to 1,430
Oxygen
Magnolia Infra
Rajarhat
368
Apartments
2 BHK: 890;
3 BHK: 987 to 1,287
Angelica
Ruchi Realty
Tangra
300
Apartments
4 BHK: 7,780 to 7,815
Aurum
Space / Dhoot
Rathtala, Sonarpur
286
Apartments
3 BHK: 1,925 to 2,385;

4 BHK: 3,830;
5 BHK: 4,760
Navita
Space Group /
Diamond Group
Madhyamgram
266
Apartments
2 BHK: 931;
3 BHK: 1,177 to 1,592;
4 BHK: 1,854 to 1,954
Riya Gitanjali
Riya Green Valley LLp
Barrackpore Barasat Road
221
Apartments
2 BHK: 1,276 to 1346;

3 BHK: 1,535 to 1,564
Royal Gardens
Rajwada Group
Narendrapur
184
Apartments
2 BHK: 816 to 1,041;

3 BHK: 1,018 to 1,093
Fortune Heights
Fortune Realty
Barasat
176
Apartments
1 BHK: 540;
2 BHK: 720 to 860
Majhergaon
(Blocks 11-17
NPR / PS / Srijan
Madhyamgram
175
Apartments
2 BHK: 818 to 940;

3 BHK: 1,070 to 1,174;
4 BHK: 1,830 to 1,946
Southern Heights
(Block 1,2,5,6)
DTC
Kulerdari, Joka
162
Apartments
4 BHK: 2,600 to 2,753
Padmalaya
Padmalaya Projects /
Aryan Group
Dum Dum
152
Apartments
2 BHK: 890 to 940;

3 BHK: 1,130 to 1,370
Orchard Estate
Master Properties
Madhyamgram
128
Apartments
3 BHK: 1,525
Hans Pushpak Group

Residency
Hans Pushpak Group
Dum Dum
125
Apartments
2 BHK: 851 to 870;

3 BHK: 1,061 to 1,354
Avenida (Twer DGrande)
Tata Housing
Rajarhat
120
Apartments
2 BHK: 906 to 1,035;

3 BHK: 1,229 to 1,595;
4 BHK: 1,832 to 1,915
33
Project Name
Developer
Location
Number of Units*
Type
MBPS Waterview
MBPS Projects LLp
Rajpur, Sonarpur
112
Apartments
2 BHK: 869 to 990;

3 BHK: 1,065 to 1,275;
4 BHK: 1,700 to 2,200
Fussion Courtyard
Mounthill Realty
Rajarhat
100
Apartments
2 BHK: 904 to 1,068;

3 BHK: 1,040 to 1,409
Purti Jewels
Purti Realti
Tangra
81
Apartments
2 BHK: 906 to 1,035;

3 BHK: 1,229 to 1,595
The 42
Mani Group
Chowringhee
58
Apartments
2 BHK: 1,036;
3 BHK: 1,379 to 1,424;
4 BHK: 1,900 to 1,978
Silveroak Prive
Simplex Infra /
Salarpuria
Rajarhat
50
Villas
2 BHK: 995 to 1,087;

3 BHK: 1,290 to 1,372
Rajwada Emerald
Rajwada Group
Narendrapur
43
Apartments
4 BHK: 3,417
Golf Apartments
Greentech City
Rajarhat
40
Apartments
2 BHK: 1,087 to 1,184;

3 BHK: 1,205 to 1,425;
4 BHK: 1,475 to 1,677
Aspirations Grandeur
Aspirations Group
Off Ballygunge
Circular Road
12
Apartments
3 BHK: 1,900 to 2,300

About 3,000 units were in the final stages of
Estate and Siddha Galaxia (Phase 1) in North-east
construction and are likely to be delivered in the next
submarket and Prakriti (Phase3) in the North-
quarter, which includes deferred projects from the
peripheral submarket, catering to the high-end and
current quarter. Rajarhat in North-east submarket is
mid segments respectively. In Q2 2015, capital values
expected to have more than half of the share in the
of under-construction projects in mid segment
total units to be delivered next quarter, followed by
witnessed marginal appreciation of about 2-3% on
North-peripheral submarket. Prominent projects
q-o-q basis owing to steady demand.
that are nearing completion include Silver Oak

Around 233,000 sf of office space was added in
down by 51% from the previous quarter owing to
the second quarter of 2015, about 30% increase over
subdued demand and lack of pre-commitments. Salt
the previous quarter. However, Grade A supply during
Lake submarket attracted almost half (46%) of the
the quarter fell almost to half (52%) from the previous
leasing activity during the quarter, followed by CBD
quarter as only 55,000 sf of supply was added, which
and Rajarhat submarkets with 27% share each.
was concentrated in Park Circus Connector
Overall vacancy levels at the end of Q2 2015 were
submarket. This was primarily due to continued
33.2%, a minute increase of 0.1 percentage points
deferment of a few large projects, owing to slow pace
over the previous quarter as supply-outpaced
of construction activity amidst high vacancy levels
demand. Rentals across submarkets dropped by 0.5-
across submarkets. Total net absorption during the
1.3% over the previous quarter, amidst subdued
second quarter was noted at 145,000 sf, which was
demand and elevated vacancy levels.
34
Retail Sector
During Q2 2015, main streets continued to
quality retail spaces in new properties in the same
witness healthy leasing activity, whilst leasing
submarket, as well as to Rajarhat. No new mall
remained subdued in malls, similar to the previous
supply was witnessed during the quarter as about
quarter. Central locations such as Camac Street,
638,000 sf of mall supply got deferred to next
Park Street in central Kolkata and Kankurgachi, VIP
quarter due to construction delays. As a result, total
Road in North Kolkata led the leasing activity on
mall stock remained same at 3.87 msf. However,
main streets. The leasing activity in main streets was
overall mall vacancy rate inched up marginally by 0.2
driven by retailers from telecom, followed by
percentage points to 3.3% at the end of Q2 2015 as
apparels brands. Some of the major retailers in
few retailers exited on lease expiry. Mall rentals
Jewellery and Electronics segments have relocated
across submarkets remained unchanged from the
from Camac Street and Elgin Road to larger and
previous quarter.
Outlook
Total unit launches in the next quarter are likely to
Connector submarket. Net absorption is anticipated
be steady considering that there are significant
to improve in the next quarter considering the pick-
projects in the pre-launch stages. Rajarhat in North-
up in enquiry levels from IT-ITeS, Telecom and BFSI
east followed by BT Road, Barasat and Madhyamgram
sectors. Also, quality Grade A office spaces in CBD
in North-peripheral and Garia, Joka and Sonarpur in
are expected to continue to attract demand.
South-peripheral submarkets are likely to continue to
However, as demand is unlikely to keep pace with the
witness healthy launch activity owing to availability of
upcoming supply, vacancy levels are expected to
large land parcels and continued interest from
increase. Hence, rentals are expected to witness
developers. Capital values are likely to remain stable
marginal downward pressure especially in
across submarkets. However, select projects
peripheral submarkets of Salt Lake.
especially in under construction stages in EM Bypass

and Rajarhat in South-east and North-east
submarkets may continue to see marginal
appreciation (1-3%) owing to steady demand.
During the next quarter, mall supply of about

638,000 sf is likely to become operational, all of
which were deferred from the previous quarter. The
upcoming supply would be concentrated in South-
Commercial office sector is anticipated to
east and West Kolkata. Healthy leasing activity is
witness about 870,000 sf of Grade A supply in the
anticipated in main streets and under-construction
next quarter, which includes deferred supply (100%)
malls that are likely to become operational,
from previous quarters. Nearly 41% of this upcoming
considering the enquiry levels and availability of
supply would be concentrated in Sector-V, Salt Lake
retail spaces. Rentals are expected to remain stable
submarket, followed by 34% in Rashbehari
across most malls and main streets.
35
Mumbai
Market Overview
Mumbai witnessed launch of approximately
3,250 units in the second quarter of 2015. Launch

activity declined by nearly 18% from the previous
quarter driven mainly by the lack of clarity on the
new Floor Space Index (FSI) regulations due to
scrapping of the Development Plan 2034. Peripheral
locations dominated the unit launches during this
quarter with Navi Mumbai and Thane contributing to
34% and 24% of the total activity. Other locations
like Bhiwandi and Neral also contributed nearly 25%
to the overall quarterly launches. Capital values

continued to maintain status-quo across majority of
the submarkets.
The office market recorded 1.0 msf of total net
in the second quarter of the year with nearly 50%

concentration in BKC.
absorption in the second quarter of 2015, lower by
Mumbai witnessed no new mall completion this
7% over the previous quarter. Grade A
quarter. The overall mall vacancy level declined by
developments contributed to 77% of the total net
1.5 percentage points to 14.3% in the second quarter
absorption. The Secondary Business District (SBD)
driven by leasing activity in malls along Kurla-
of Bandra-Kurla Complex (59%), Thane-Belapur
Ghatkopar and Malad-Goregaon stretch. A mix of
Road (12%) and Lower Parel (12%) submarkets led
local retailers and international brands (mostly in
the Grade A absorption. IT-ITeS sector continued to
the apparels and accessories segment) contributed
dominate the leasing activity with 29% contribution,
to the demand. Additionally, three malls with high
followed by BFSI sector with 21% share.
vacancy levels shut down operations contributing to
Approximately 1.4 msf of office space was delivered
the overall decline in vacancy level.
Trends & Updates

Low sales velocity led to stability in capital values
across majority of the submarkets. Capital values
North East locations due to increase in quoted values

of select in-demand ready residential projects.
recorded a marginal uptick in Central, Far North and
36

2008
2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
South
43.0 - 55.0
42.5 - 58.0
43.0 - 60.0
45.0 - 65.0
48.0 - 70.0
48.0 - 75.0
48.0 - 75.0
48.0 - 75.0
48.0 - 75.0
South Central
47.0 - 67.0
42.0 - 66.0
45.0 - 70.0
45.0 - 75.0
46.0 - 78.0
46.0 - 83.0
46.0 - 83.0
46.0 - 83.0
46.0 - 83.0
Central
33.0 - 53.0
34.0 - 55.0
35.0 - 55.0
32.0 - 54.0
34.0 - 58.0
27.0 - 65.0
27.0 - 65.0
27.0 - 65.0
27.0 - 65.0
North
27.0 - 31.0
22.0 - 30.0
24.0 - 32.0
24.0 - 32.0
28.0 - 40.0
28.0 - 48.0
28.0 - 50.0
28.0 - 50.0
28.0 - 50.0
Far North
9.0 - 13.0
10.0 - 16.5
11.0 - 16.5
11.0 - 16.5
12.5 - 18.0
12.5 - 18.0
12.5 - 20.0
12.5 - 20.0
12.5 - 20.0
North East
14.0 - 18.0
10.0 - 16.0
10.0 - 16.0
10.0 - 18.0
14.0 - 22.0
15.0 - 22.0
15.0 - 22.0
15.0 - 22.0
15.0 - 24.0
Location
Source- Cushman and Wakefield Research

Note: The above values for high-end segment typically include units of 2,500-6,000 sf for South, South-Central, Central and North and units of 1,650-3,000 sf
for North (Santacruz & Juhu), Far North and North-East
Average Capital Values Mid Segment (INR'000/sf)

Location
South
2008
2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
27.0 - 34.0
28.0 - 37.0
30.0 - 40.0
30.0 - 40.0
35.0 - 45.0
40.0 - 50.0
40.0 - 50.0
40.0 - 50.0
40.0 - 50.0
South Central 34.0 - 43.0 35.0 - 45.0 40.0 - 48.0 43.0 - 52.0 43.0 - 52.0
45.0 - 58.0 45.0 - 58.0 45.0 - 58.0 45.0 - 58.0
Central
18.0 - 28.0
15.0 - 26.0
17.0 - 30.0
17.0 - 35.0
22.0 - 37.0 23.0 - 40.0
23.0 - 40.0
23.0 - 40.0
23.0 - 40.0
North
13.5 - 19.5
16.0 - 24.0
16.0 - 25.0
16.0 - 25.0
18.0 - 27.0
20.0 - 30.0
20.0 - 30.0
20.0 - 30.0
20.0 - 30.0
Far North
7.0 - 9.0
8.5 - 11.5
9.0 - 12.0
9.0 - 13.0
10.0 - 14.0
10.0 - 14.0
10.0 - 14.0
10.0 - 14.0
10.0 - 16.0
North East
6.0 - 7.4
6.4 - 8.5
6.5 - 8.5
6.5 - 10.0
8.5 - 12.5
8.5 - 12.5
9.0 - 13.0
9.0 - 13.0
10.0 - 14.0

Note: The above values for mid segment typically include units of 1,400-2,500 sf for South, South-Central, Central and North and units of 900-1,400 sf for
Far North and North-East
Key to Locations:
South: Colaba, Cuffe Parade, Nariman Point, Churchgate, etc.
South Central: Altamount Road, Carmichael Road, Malabar
Hill, Napeansea Road, Breach Candy, Pedder Road, etc.
Central: Worli, Prabhadevi, Lower Parel/ Parel
North: Bandra (W), Khar (W), Santacruz (W), Juhu, etc.
Far North: Andheri (W), Malad, Goregaon, etc.
North-East: Powai
37

Mumbai recorded the launch of nearly 3,250
25% contribution. The 2 and 3 BHK units dominated
units in the second quarter, witnessing 18% decline
the mid segment unit launches with 42% and 33%
compared to the first quarter of 2015. Mid segment
share respectively. This quarter also witnessed the
properties dominated unit launches with 58%
first luxury project launch of the year; a marquee
contribution, followed by affordable projects with
project at Altamount Road in South Mumbai.
Project Name
Developer
Location
Number of Units*
Type
Sai World City
Paradise Group
Panvel
1,092
Apartments
2 BHK: 1,265 to 1,305;

3 BHK: 1,735 to 2,000;
4 BHK: 2,775 to 2,785
Orovia
Vijay Group
Thane West
648
Apartments
1 BHK: 650 to 715;

2 BHK: 855 to 1,115
Vijay Estate
Vijay Group
Neral
486
Apartments
1 BHK: 499 to 682;

2 BHK: 849
Crescent Bay
JV- L&T Realty and

Omkar Realtors and.
Developers
Parel
360
Apartments
2 BHK: 1,435;
3 BHK: 1,810
Florence Pearl
Wadhwa Developers
Bhiwandi
328
Apartments
1 BHK: 655 to 730;

2 BHK: 1,120 to 1,175
Rodas Enclave
Hiranandani Developers
Thane
124
Apartments
3 BHK : 1,251 to 1,300
Satra Limited
Edition 88
Satra Group
Bandra
88
Apartments
4 BHK: 4,116 to 4,364
Altamount One
Lodha Developers
Altamount Road
64
Apartments
3 BHK: 3 ,200;
4 BHK: 4,500;
5 BHK : 5,500 to 7,600
Naman Residency
Shree Naman Group
Bandra Kurla
Complex
30
Apartments
2 BHK: 2,777;
3 BHK: 3,200
Satyam Aura
Satyam Developers
Ulwe
28
Apartments
1 BHK: 680;
2 BHK: 1,100
Estimated and as per market information

Peripheral locations like Thane (including
Ghodbunder Road) and Navi Mumbai continued to
witness sizeable construction activity during the
year. Also, Eastern and Western suburban locations
like Wadala, Mulund, Powai, Ghatkopar, Andheri,
Goregaon, Malad, Kandivali, Mira Road, etc., have

strong under-construction pipeline. Due to subdued
demand from end-users, capital values across
locations and segments continued to remain stable.

Nearly 1.4 msf supply became operational in
Mumbai in the second quarter of 2015, registering a
32% increase compared to the previous quarter.
70% of this total supply was contributed by Grade A
developments. BKC and Central suburbs recorded
50% and 21% contribution to the overall supply.
The increase in quarterly supply and slight decline in

net absorption led to 0.3 percentage points increase
in All Grades vacancy levels to 18.8%. Weighted
average rentals witnessed slight improvement
across all locations due to minor increase in quoted
rentals of select Grade A properties.
38
Retail Sector
High vacancy levels and subdued demand led to
decline in mall rental values in the range of 7.5% to
9.1% in Kurla, Bhandup-Mulund, Thane and Kandivali
submarkets. Whilst other submarkets recorded
stable mall rentals, Lower Parel and Goregaon
witnessed 15.4% and 13.3% increase respectively
during the quarter, driven by limited availability of

space and high demand. Main street rentals
maintained status-quo in all submarkets except
Colaba Causeway. Rentals in Colaba declined by 7.7%
in the quarter due to dip in enquiries and sufficient
availability of space.
Outlook
Both capital and rental values are likely to
supply in the next quarter, which might lead to
remain stable across majority of the locations.
stable vacancies. Overall weighted average rentals
However, certain locations might see a slight
are likely to strengthen due to introduction of new
improvement in upper range of capital values due
supply at higher rentals especially in Lower Parel
to an increase in quoted values of select projects.
and Thane-Belapur Road.
Many developers are likely to delay project

launches until the revised Development Plan
comes into force and to benefit from likely
improvement in sales activity during festive season
in the fourth quarter. However, launch activity
might improve marginally in next quarter due to
the proposed launch of a large project in peripheral
location by a leading developer.
Mall rentals in Lower Parel, Goregaon and Vashi

are likely to strengthen in the coming quarter amidst
limited availabilities and higher enquiries. Lack of
appropriate tenant mix and declining footfalls in
certain malls might lead to further rental correction
in mall locations such as Kandivali, Kurla and
Bhandup-Mulund. Main street rentals in South
Mumbai are likely to be under pressure with
Mumbai is expected to witness steady office
increasing preference for suburban and peripheral
supply in the next quarter. The transaction activity
locations like Goregaon, Thane and Vashi.
is likely to pick-up pace due to sizeable demand
Transaction activity is likely to improve in the next
arising from the IT-ITeS and BFSI sectors. The
six months with many anchor retailers in lifestyle
absorption levels are expected to be at par with
segment currently scouting for space in the market.
39
Pune
Market Overview
Nearly 3,700 units were launched during the
second quarter of 2015. Launch activity improved by

12% from the previous quarter. Mid segment
continued to dominate the launch activity in the
second quarter of 2015 with a 53% share, whilst
affordable segment contributed the rest. Quoted
rental and capital values largely remained stable
from the previous quarter across all submarkets.
However, quarterly mid segment capital values in
Nagar Road, East and NH4 Bypass (North)
submarkets appreciated by 2% each due to

continued demand.
Pune witnessed nearly 3.5 msf of new commercial
percentage point to stand at 16.8% and 20.9%,

respectively.
supply in the second quarter of 2015, almost four
Mall inventory remained unchanged in the second
times that of the previous quarter. Grade A
quarter of 2015, as 560,000 sf of retail space spread
developments contributed 82% to the total supply,
across two malls was deferred on account of delay in
which was concentrated in the western locations of
obtaining approvals. Mall vacancy dipped by 0.8
Hinjewadi (40%) and Aundh-Baner (29%). IT-SEZ
percentage points in the quarter and was noted at
developments dominated the supply with a 40%
19.9% due to stable transaction activity and no new
share. Grade A vacancy increased by 0.7 percentage
supply addition.
points and All Grade vacancy increased by 1.0
Trends & Updates

Due to high unsold inventory, capital values
across locations maintained status quo. Most
better manage project cash-flows and clear existing

unsold inventory.
developers staggered launch activity in phases, to
40

2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
Koregaon Park,
Boat Club
8.5 - 10.7
9.0 - 13.0
13.0 - 15.5
14.0 - 17.0
14.0 - 17.0
15.0 - 17.0
15.0 - 17.0
15.0 - 17.5
Aundh
5.0 - 5.2
5.0 - 5.5
5.0 - 6.0
8.0 - 10.0
9.0 - 11.0
9.0 - 12.5
9.0 - 12.5
9.0 - 12.5
Baner
NA
5.0 6.5
6.5 7.5
8.0 10.0
8.0 10.0
8.5 11.5
8.5 11.5
8.5 12.0
Kalyani Nagar
7.3 - 9.2
8.0 - 12.0
8.0 - 12.5
12.0 - 14.0
12.0 - 15.0
12.0 - 15.0
12.0 - 15.0
12.0 - 15.0
Wanowrie, NIBM,
Kondhwa
3.3 - 3.6
4.0 - 5.0
4.0 - 5.5
5.0 - 6.2
5.2 - 6.5
5.2 - 7.2
5.2 - 7.2
5.2 - 7.4
Location

Average Capital Values Mid Segment (INR '000/sf)

2009
2010
2011
2012
2013
2014
1Q 2015
2Q 2015
Koregaon Park,
Boat Club
4.5 - 5.5
6.0 - 7.0
6.0 - 7.0
8.0 - 10.0
8.0 - 10.0
8.5 - 10.5
8.5 - 10.5
8.5 - 10.5
Aundh
3.6 - 4.2
4.0 - 5.0
4.5 - 5.5
6.0 - 7.0
6.5 - 8.0
7.5 - 8.5
7.5 - 8.5
7.5 - 8.5
Baner
2.9 - 3.6
3.5 - 5.5
4.0 - 5.5
5.0 - 6.0
5.7 - 6.8
6.0 - 7.5
6.0 - 7.5
6.0 - 7.5
Wakad
2.2 - 2.8
3.5 - 4.0
3.7 - 4.5
4.0 - 4.7
4.7 - 5.5
5.1 - 5.7
5.1 - 5.7
5.1 - 6.0
Kalyani Nagar
4.5 - 5.5
6.5 - 7.0
6.5 - 7.5
7.0 - 8.0
7.0 - 8.0
8.0 - 9.0
8.0 - 9.0
8.0 - 9.0
Wanowrie, NIBM,
Kondhwa
2.8 - 3.1
4.0 - 5.5
4.0 - 5.5
4.8 - 6.0
4.8 - 6.0
5.0 - 6.0
5.0 - 6.0
5.0 - 6.0
Location


The second quarter of 2015 witnessed 12%
quarter to 264 units per project. 6 large projects
improvement in launch activity compared to the
that consisted of more than 350 units each were
previous quarter. Approximately 3,700 units were
launched in the second quarter of 2015. Chakan and
launched in this quarter, mid segment dominated the
Wagholi accounted for 64% of the total affordable
launch activity with a 53% share whilst affordable
units launched in this quarter. Locations such as
segment contributed the rest. This quarter
Pashan, Bavdhan and Tathawade along NH4 Bypass
witnessed an increase in the average number of
(North) also witnessed significant launches.
units launched per project from 183 units in the first
Project Name
Developer
Location
Number
of Units*
Type
Magic
Mantra Properties
Moshi
480
Apartments
1 BHK: 500 to 639;

2 BHK: 718 to 726
Moments
Mantra Properties
Moshi
420
Apartments
1 BHK: 609 to 841;

2 BHK: 867 to 983;
3 BHK: 1,173 to 1,200
Aapla Ghar
Maple Developers
Chakan
384
Apartments
1 BHK: 357 to 575;

2 BHK: 619 to 805
Aapla Ghar
Maple Developers
Wagholi
384
Apartments
1 BHK: 503 to 524;

2 BHK: 529 to 823
Residency
Mantra Properties
Chakan
360
Apartments
1 BHK: 515 to 675;

2 BHK: 722
41
Project Name
Developer
Location
Number
of Units*
Type
Prana
Godrej Properties
Undri
354
Apartments
1 BHK: 634 to 665;

2 BHK: 872 to 1,350;
3 BHK: 1,196 to 1,318
Ideal Spacio
Marvel Realtors
Undri
336
Apartments
2 BHK: 1,090 to 1,320;

3 BHK: 1,515 to 1,615
Abitante
Puranik Builders
Bavdhan
220
Apartments
1 BHK: 585;
2 BHK: 926;
3 BHK: 1,426
Mantri Vantage
Mantri Developers
Kharadi
195
Apartments
2 BHK: 1,175 to 1,265;

2.5 BHK: 1,380;
3 BHK: 1,520
Ivy Estate Phase II Ivy Apartments
Kolte Patil Developers
Kharadi
140
Apartments
2 BHK: 1,140 to 1,205;

3 BHK: 1,565 to 1,830
Legacy
Gayatrree Group
Chikhali
130
Apartments
1 BHK: 628 to 660;

2 BHK: 988 to 998
Kalpataru Serenity
Kalpataru
Manjri
116
Apartments
1 BHK: 650;
2 BHK: 712 to 736;
2.5 BHK: 1,272 to 1,359
Azure
Paranjape Schemes
Tathawade
114
Apartments
2 BHK: 1,024 to 1,175;

3 BHK: 1,521 to 1,577
Anant Venkatesh
Dajikaka Gadgil
Developers
Private Limited
(DGDPL)
Pashan
60
Apartments
2 BHK: 1,035 to 1,087;

3 BHK: 1,391 to 1,439

To boost sales in both completed and under-
token price. Going forward, many developers are
construction projects, many reputed developers came
expected to follow the trend and come up with
up with individual property exhibitions. These
individual property exhibitions. Existing unsold
exhibitions offered attractive schemes and discounts
inventory levels kept capital values stable across
on both on-the-spot and online bookings, and some of
segments and locations during the quarter.
the projects were available for booking at a very low

Pune recorded 2.3 msf of net absorption in the
supply, which was concentrated in the western
second quarter of 2015, reflecting an increase of
locations of Peripheral-West (40%) and Suburban-
176% from the last quarter. Grade A developments
West (29%) submarkets. IT-SEZ developments
accounted for 93% of overall net absorption and
dominated the supply with a 40% share. Grade A
doubled to nearly 2.2 msf. Approximately 3.5 msf of
weighted average rentals increased by 6%, mainly
new supply was added in the second quarter of 2015,
due to available quality space being quoted at higher
almost four times that of the previous quarter. Grade
rentals, specifically in Off-CBD West and Peripheral
A developments contributed 82% to the total
East submarkets.
42
Retail Sector
Malls continued to drive leasing activity, primarily
quarterly decline in rents due to competitive pressure.
at Nagar Road and Hadapsar that witnessed healthy
Rental values across most main streets remained
leasing mainly by apparels and food and beverage
stable except FC Road, Koregaon Park and Aundh that
(F&B) segments. Burger King opened its first outlet in
saw a decline in the range of 2%-4% in the second
the city, admeasuring 3,500 sf in Phoenix Market City.
quarter of 2015 due to reducing interest of retailers
Despite healthy leasing, mall rentals remained stable
owing to limited quality space.
across the city except Hadapsar that saw an 8%
Outlook
The third quarter of 2015 is expected to witness
similar launch activity as in the current quarter as
developers may open only limited blocks for
bookings and may prolong pre-launch phases of
their residential projects until sales improve
significantly.
may lead to an upward revision in overall weighted

average rentals.
Rentals are expected to remain stable across
most main streets in the next quarter. However,
Aundh may witness softening of rentals if demand
continues to remain low due to competitive pressure
Almost half of the upcoming commercial supply
from upcoming malls in the vicinity. Owing to
of 1.5 msf expected in the next quarter is pre-
infusion of nearly 1.0 msf of retail space spread
committed by consulting and e-commerce
across three malls in the upcoming quarter, overall
companies. With steady leasing activity and limited
mall vacancy levels are expected to rise which may
supply, vacancy levels are likely to reduce. The
put a downward pressure on rentals.
supply addition is likely to be at higher rentals which
43
This research report has been prepared by Cushman & Wakefield

specially for distribution to Citibank customers.
GENERAL DISCLOSURE
Disclaimer Cushman & Wakefield
All data, figures, information provided hereto are provided and/or collated by Cushman & Wakefield India and that Citibank or any of its
representatives, officers, employees or affiliates makes no representations or warranties as to the accuracy or completeness of any
information furnished hereto. This report has been prepared by Cushman & Wakefield India solely for information purposes. It does not
purport to be a complete description of the markets or developments contained in this material. The information on which this report is based
has been obtained from sources that Cushman & Wakefield India believes in its reasonable bona fide faith to be reliable, but Cushman &
Wakefield India has not independently verified such information and do not guarantee/ warranty the accuracy, genuineness or completeness
of the information therein. This report contains information available to the public and has been relied upon by Cushman & Wakefield on the
basis that it is accurate and complete. Information contained herein should not, in whole or part, be published, reproduced or referred to
without prior approval. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. Any such reproduction should
be credited to Cushman Wakefield.
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above have been selected randomly for the purpose of this report and that such mention/indication of the same does not, in anyway whatsoever,
indicate any preference or promotion by Citibank of the same. Citibank does not intend to suggest or promote any specific area, builder, developer
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44

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PROPERTY

UPTICK IN ECONOMY, BETTER GROWTH PROSPECTS

GROSS DOMESTIC PRODUCT GROWTH RATE

2014-15 was 7.5%, 0.9 percentage points higher from

Growth Rate (%)

India during the fourth quarter of the fiscal year (FY)

compared to the previous fiscal, hinting at

5.01%. The Wholesale Price Index (WPI) continued to be

measured in terms of Consumer Price Index (CPI) for

about 13.6 million square feet (msf) of new supply

the month of April 2015 fell to 4.87%, but increased

during the second quarter of 2015 across the top eight

marginally in the subsequent month (May 2015) to

cities1. This was higher by about 83% over the

preceding quarter as Chennai (17 times) and Pune (5

(FC Road, Koregaon Park and Aundh) and Bengaluru

times) saw a very substantial increase in the supply.

(Brigade Road) witnessed rentals declined by 2-5%

Similarly, total net absorption too noted an increase

owing to limited demand. Lower Parel and Goregaon in

by 25% from the previous quarter to 9.9 msf, led by

Mumbai and Kamanahalli in Bengaluru were the only

Bengaluru with 37% share in total net absorption

main-streets where rentals appreciated (q-o-q) by

followed by Pune with 23% share. Overall vacancy

13-15% and 7% respectively owing to limited availability

level inched up marginally by 0.13 percentage point

of quality space amidst increased enquiries.

over the previous quarter and was recorded at 20.1%

In the residential sector, about 28,100 units were

In the retail sector, no new mall supply was added

quarter of 2015, an increase of 14% over the previous

during the second quarter of 2015. As a result, overall

quarter. Within the total unit launched this quarter,

mall vacancy levels of the top eight cities declined by

Delhi-NCR had the highest share at 25%, followed by

1.1 percentage points to 13.6%. In addition, three malls

Bengaluru with a 16% share. Capital values during the

with high vacancy levels, were closed this quarter in

quarter remained stable across most cities in

Mumbai, contributing to a decline in overall vacancy

comparison to the previous quarter owing to slow

levels. Mall rentals remained stable across most cities.

pace of sales velocity. However, few submarkets in

However, certain submarkets in western region of

Kolkata and Pune witnessed appreciation in capital

Mumbai (Kandivali, Kurla, Thane, Bhandup-Mulund)

values in 1-4% range for mid segment units on the

and Pune (Hadapsar) reported quarter-on-quarter

back of steady demand. Also, high-end and luxury

(q-o-q) rental decline of 7-9% decline owing to high

segments of a few submarkets in Kolkata and Delhi-

availabilities, low demand and competitive pressure.

NCR respectively witnessed about 3% appreciation in

Additionally, mall rentals in Somajiguda and NTR

capital values on a q-o-q basis. Residential sales are

Gardens in Hyderabad witnessed double-digit decline

likely to improve as banks have started reducing

(14-20%) due to decline in footfalls and lack of

lending rates on home loans.

demand. Rentals in certain main streets in Pune

Trends & Updates

EXCHANGE RATE MOVEMENT (INR/USD)

marginally from (a three month low of) 4.87%