CB Property Insights Q1 2015

Citigold Private Client
PROPERTY
INSIGHTS
India
Quarter 1, 2015
Improving Macro-economic Conditions; Positive Sentiments

INDIA MARKET OVERVIEW
Indias Gross Domestic Product (GDP) growth rate
GROSS DOMESTIC PRODUCT GROWTH RATE
(as per the new methodology) for the third quarter of

8.2% in the previous quarter to 7.5%. Finance, real
estate and professional services, and electricity, gas,
supply and other utilities grew more than 7% in this
Growth Rate (%)
fiscal year (FY) 2014-15, slowed down marginally from
quarter. In this quarter, the construction sectors

growth dipped sharply to 1.7%, a 5.5 percentage
points decline from the previous quarter. The
Source: Central Statistical Organisation, Govt. of India* (as per the revised estimates)
manufacturing sector also declined by 1.4 percentage

points from the previous quarter and stood at 4.2% in
Current Account Deficit (CAD) narrowed to 1.6%
the third quarter of FY2014-15. The agriculture,
of GDP in the third quarter of FY2014-15 from 2.0% in
forestry and fishing sectors growth dipped 2.4
the previous quarter, primarily due to an improvement
percentage points and stood at 0.4%. The mining &
in net earnings through travel and software services,
quarrying sector grew by 0.5 percentage points from
and lower net outflows. HSBC India Purchasing
the previous quarter and was noted at 2.9%.
Managers Index (PMI) stood at 53.5 in March 2015, a
With inflation under control, the Reserve Bank of

India (RBI) reduced the repo rate from 8% to 7.75% in
January, followed by a further reduction to 7.5% in
marginal decline from 54.5 in December. The

manufacturing sector expanded at a rapid pace, whilst
the services activity slowed down marginally.
March 2015. The Cash Reserve Ratio (CRR) remained
Across the top eight cities1, total net absorption of
unchanged at 4.0% whilst the Statutory Liquidity
commercial office was around 7.9 million square feet
Ratio (SLR) was reduced by 0.5 percentage points to
(msf), a 13% decline from the previous quarter.
21.5% in March 2015. The Consumer Price Index (CPI)
Bengaluru (41%), Hyderabad (14%) and Mumbai (13%)
stood at 5.37% in February 2015, increasing
held the highest share in the net absorption. Pune
marginally from 4.28% in December 2014, but well
held 10.5% share of the total net absorption followed
below the RBIs target of 8%. The Wholesale Price
by Chennai and Delhi-NCR, which accounted for 8-9%
Index (WPI) witnessed a further decline from -0.5% in
share each. Overall supply across top eight cities was
December 2015 to -2.06% in February 2015.
recorded at 7.43 msf, a 40% decline from the previous
Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.
1
Last Modified Date : 28-04-15
quarter. Due to healthy leasing, the overall vacancy
the total unit launches. Capital values remained
levels across these eight cities dropped by 0.5
largely stable in both high-end and mid segment units
percentage points from the previous quarter, and was
of five cities including Ahmedabad, Delhi-NCR, Mumbai,
noted at 18.3% in the first quarter of 2015.
Kolkata and Pune, primarily due to existing high unsold
In the retail sector, across the top eight cities, only

Bengaluru witnessed new mall supply of 0.2 msf. A few
malls have deferred their completion timelines due to
construction delays and in some cases, due to delay in
obtaining required approvals. In the wake of low new
supply, the overall mall vacancies across the top eight
cities remained largely stable at 14.7%
inventory. Bengaluru and Chennai witnessed a 5-7%

capital value appreciation in the mid segment due to an
increase in demand. In Hyderabad, limited availability in
the high-end segment resulted in 3-6% capital value
appreciation in select submarkets. With downward
revision of repo rates and reduction in home loan
interest rates, housing demand is likely to increase in
the coming quarters.
In the residential sector, approximately 24,600

units were launched across the top eight cities in this
quarter, a 21% decline from the previous quarter.
Bengaluru had a major share of these unit launches at
17%, closely followed by Mumbai contributing 16% to
Trends & Updates

Economic Trends
The Consumer Price Index (CPI) increased
EXCHANGE RATE MOVEMENT (INR/USD)
marginally from 5.19% in January to 5.37% in

February 2015, however the inflation largely seemed
the repo rate - twice (0.50 basis points in total) in the
INR/USD
to be under control. In order to revive the economic

growth, the RBI reduced its benchmark lending rate first quarter of 2015, to 7.5%. The Cash Reserve
Ratio (CRR) remained unchanged at 4.0%. However,
the Statutory Liquidity Ratio (SLR) was reduced by
Source: RBI
0.5 percentage point from December 2014 to 22.5%

in March 2015.
The Wholesale Price Index (WPI) continued to
FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR
witness a decline for the last four months, and was

noted at -2.06% in February 2015 from -0.5% in
products, manufactured goods, fuel and power. In
February 2015, food inflation was noted at 7.74%.
Although this was a marginal decline from January, it
INR Crore
December 2015, due to a decline in the prices of food
registered a 2.79 percentage points increase from

December 2014. The fuel and power inflation stood at 14.72% a further decline from -7.82% recorded in
Source: Dept. of Industrial Policy & Promotion, Govt, of India
December. Inflation for manufactured goods dropped

by 1.11 percentage points to 0.33% in February 2015.
2
Indias GDP is projected to attain 7.4% growth at
BSE REALTY INDEX
the end of FY2014-15. With the governments agenda

to boost infrastructure investments, and improve
anticipated to increase in the future periods.
Index
the business environment, private investments are
This quarter witnessed an improvement in the

Indian Rupee from INR 63.6 in December 2014 to INR
62.5 in March 2015, as against the US Dollar. The
rupee strengthened in this quarter primarily due to
increased inflows from Foreign Institutional
infrastructure), which was around INR 4,359 crores.
Investors (FIIs).
FDI doubled in January 2015 in comparison to the
The total FDI inflows in India were INR 155,489

crore during April 2014 January 2015, of which
2.8% came in the construction development sector
(comprising townships, housing, built-up
same month last year, making it the highest inflow in

the past 29 months.
The BSE Realty Index increased by 130.57 points
to close at 1,664 points at the end of March 2015.
Residential Trends
Subdued demand led to stable capital values
RESIDENTIAL CAPITAL VALUES GROWTH INDEX
across submarkets in five of the top 8 cities. Select

submarkets in Bengalurus mid segment witnessed a
3-7% appreciation due a marginal increase in
demand, infrastructure improvements and addition
of new launches at a higher rate. These submarkets
include Central, West, South-east and East
Bengaluru. Due to availability of quality mid segment
housing, Chennai also witnessed a surge in demand
Source: Cushman & Wakefield Research
especially in Porur and Rajiv Gandhi Salai-I

submarkets.
In Hyderabad, capital values in the
NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 1Q 2015
high-end segment of Banjara Hills and Jubilee Hills

appreciated between 3-6%, due to limited supply
amidst high demand.
In the first quarter of 2015, around 24,600 unit
launches were noted in the top eight cities; a 21%
decline from the previous quarter. This decline was
primarily due to high level of unsold inventory in many
cities.
Bengaluru (17%), Mumbai (16%), Chennai
(13%) and Pune (13%) witnessed the maximum

number of unit launches in this quarter. Unit launched
inventory and project delays due to non-receipt of
in Hyderabad and Chennai doubled from the previous
approvals. In anticipation of an increase in FSI in the
quarter. Ahmedabad also witnessed a 79% increase in
proposed Development Plan (DP) 2034 for Mumbai,
the total unit launches. In contrast, Delhi-NCR, Kolkata
developers held back new launches and focused on
and Pune noted a decline of 28-40% in total unit
completion of under-construction projects, which led
launches, due to existing high levels of unsold
to an 11% decline in unit launches during this quarter.

3
Index
Ahmedabad...................................................................................
Bengaluru...................................................................................... 8
Chandigarh.................................................................................... 12
Chennai.......................................................................................... 14
Delhi - National Capital Region (NCR) .................................... 19
Hyderabad..................................................................................... 23
Jaipur ............................................................................................ 27
Kolkata.......................................................................................... 30
Mumbai........................................................................................... 35
Pune............................................................................................... 39
4
Ahmedabad
Market Overview
Residential launches during 1Q 2015 were
READY RESIDENTIAL PROPERTY VALUES IN MARCH '15
approximately 1,750 units, an increase of 79% from

the previous quarter. Increase in number of units was
due to launch of a few large projects during the
quarter. Average number of units per project
increased from 122 in the previous quarter to 174
during the first quarter of 2015. Majority of the
projects launched in this quarter were Ground+10
storied or more. In a first of its kind, Disney themed
high-end villas were launched in the outskirts of the
city. Capital values remained stable from the previous
Represents Mid and High End segments
quarter due to high levels of unsold inventory.

The commercial office sector witnessed around
153,800 square feet (sf) of net absorption during the
first quarter of 2015, mainly in Grade A
developments. Net absorption declined by 59%
from the previous quarter and was concentrated in
the sub-markets of S.G. Highway (82%) and
Prahladnagar (18%). The IT-ITeS sector had the
highest share (42%) in 1Q 2015 leasing, down from
57% in the previous quarter. Supply also declined by
63% during this quarter to 216,000 sf, all in S.G.
Mall vacancy levels were noted at 33.3% in 1Q

2015, an increase of 1.2 percentage points from the
previous quarter. The increase in vacancy was due to
a few exits in select malls located in Kankaria and S.P.
Ring Road. Rentals in most malls remained stable,
except Kankaria where they declined by 16.7% due to
low demand. Transaction activity remained high in
main streets, especially along S.G. Highway where
apparel, lifestyle and automobile brands expanded
their footprint.
Highway submarket. Rental values largely remained

stable from the previous quarter.
Trends & Updates

Ready Residential Property Update
Capital values of ready residential projects
remained stable from the previous quarter. Majority
towards the upper range of the submarket capital

values.
of the newly completed ready projects were priced
5
Average Capital Values High-end Segment (INR '000/sf)

Location
2010
2011
2012
2013
2014
1Q 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
Vastrapur
3.7 - 4.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
S.G.Highway
3.7 - 4.3
3.7 - 4.5
3.7 - 4.5
3.7 - 4.5
3.7 - 5.0
3.7 - 5.0
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
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
2.8 - 3.8
2.8 - 4.3
2.8 - 4.3
2.8 - 4.3
2.8 - 4.3
2.8 - 4.3
Vastrapur
2.6 - 3.5
2.6 - 3.8
2.6 - 3.8
2.6 - 3.9
2.6 - 3.9
2.6 - 3.9
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
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
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

New unit launches declined by 79% from the
whilst 33% to the high-end segment. Western
previous quarter and around 1,750 units were
peripheral locations such as Bopal, South Bopal and
launched in 1Q 2015. Average project size also
Ambli dominated the launch activity with a 47%
increased from 122 units in the previous quarter to
share. 3 BHK configurations had the maximum
174 units in this quarter. Around 65% of units
contribution to new launches with a 43% share
launched in this quarter catered to the mid segment
followed by 2 BHKs (28%) and 4 BHKs (22%).
Project Name
Developer
Location
Number of Units*
Type
Area of Units (sf)
Aaryan Gloria
Aaryan Builders
Bopal
560
Apartments
2 BHK: 999 to 1,435

3 BHK:1,440
Upland Villas
Arvind
Infrastructure
Nasmed
280
Villas
4 BHK: 2,925 to 3,870

5 BHK: 4,950 to 6,075
6 BHK: 9,900
Gala Eternia
Gala
Infrastructure
Thaltej
216
Apartments
3 BHK: 1,385 to 1,745
Savvy Swaraaj
Savvy
Infrastructure
S.G. Highway
208
Apartments
2.5 BHK: 1,380

3 BHK: 1,730
Binori Grandeur
Binori Buildcon
Ambli
152
Apartments
4 BHK: 2,995
Binori Gracia
Binori Buildcon
South Bopal
102
Apartments
3 BHK: 1,435
Binori Mable
Binori Buildcon
Prahladnagar
52
Apartments
3 BHK: 1,965
Dev Atelier
Dev Group
Prahladnagar
50
Apartments
3 BHK: 2,164
Indraprasth Kadamb
Deep Group,
Vedant Developers
Prahladnagar
42
Apartments
4 BHK: 3,000
Sepal Elegant 2
Swetalee
Developers
& Sepal Buildcon
Chandkheda
42
Apartments
1 BHK: 756
2 BHK: 1,008 to 1,026
Setu Scarlet
Setu Infracon
Motera
36
Apartments
3 BHK: 2,070
6
Under Construction Residential Property Update

Peripheral locations along S.G. Highway and Bopal
activity during the quarter. Capital values across most
and areas in north Ahmedabad such as Chandkheda,
submarkets remained stable from the previous
Motera, etc. witnessed significant construction
quarter.
Commercial Office Sector

Ahmedabad witnessed 242,000 sf of supply
outright purchases by local traders was also
during this quarter, primarily in the S.G. Highway
prominent during the quarter. Continued
sub-market. Leasing of 153,800 sf was noted during
transaction activity led to a quarterly decline in
the quarter with the IT-ITeS sector having the
Grade A vacancy levels by 1.7 percentage points and
highest share at 42%, followed by the chemicals
was noted at 33.4%. Rental values remained stable
sector at 34%. Transaction activity in the form of
from the previous quarter.
Retail Sector
Low transaction activity led to an increase in mall
due to which transaction activity may improve in the
vacancy levels, which were noted at 33.3% in 1Q
coming year. Quick Service Restaurants (QSRs) such
2015. Lack of quality spaces and upkeep in certain
as Starbucks and Burger King are looking to open
malls led to a few exits. Rentals remained stable from
their first stores in the city whilst Dunkin Donuts
the previous quarter across malls and main streets.
opened its first store in the city during this quarter.
However, enquiries for prime main streets increased
Outlook
Residential launches in the upcoming quarter are
Mall rentals in the S.G. Highway sub-market may
likely to remain at par with 1Q 2015, considering the
decline in the upcoming quarter due to persistently
high levels of unsold inventory. Capital values are
high vacancy levels. However, rentals in Vastrapur
also likely to remain stable across submarkets in the
may appreciated due to healthy demand and low
upcoming quarter.
vacancy levels. Rentals in the main streets of C.G.
110,000 sf of office supply is expected to become

operational in Prahladnagar during the next quarter.
Although the under construction pipeline has
declined, high vacancy levels due to subdued
Road and Prahladnagar may appreciate, considering

the high levels of enquiries from F&B and lifestyle
brands. Rentals are likely to remain stable in all other
main streets in the next quarter.
demand may lead to a downward pressure on rental

values in the upcoming quarter.
7
Bengaluru
Market Overview
About 4,000 units were launched in the first
quarter of 2015, a 28% decline from the previous

quarter. Mid segment dominated with about 91%
share of the total unit launches. Maximum unit
launches were in South-east submarket (41%),
followed by the North Submarket (25%). Strong-end
user demand, especially from IT-ITeS working
professionals and ease of connectivity to various
parts of the city drove new launches in these
submarket.
In the first quarter of 2015, approximately 1.96

msf supply was added. Whilst new supply was less
than half the previous quarters addition, leasing
In the retail sector, a new mall supply of 200,000
remained strong at 3.89 msf. New supply comprised
sf in Tumkur Road was added in this quarter. The
only of Grade A developments, of which 42% came
overall mall vacancy dipped by 0.6 percentage
in the Suburban South submarket, followed by 35%
points and was recorded at 8.8%, due to healthy
in the Outer Ring Road submarket. In this quarter, IT-
leasing along Thanisandra Road and Tumkur Road.
SEZ developments accounted for more than half
Malls and main street rentals largely remained
(52%) of the total supply.
Trends & Updates

Capital values improved in select submarkets from
in the Western submarket. Capital values of high-end
the previous quarter. Mid segment rentals in the Central
segment of the North submarket; and mid segment of
and the Western quadrant appreciated by 7% from the
the South-east and East submarket also appreciated by
previous quarter. Whilst limited supply amidst launches
3-7%, due to sustained end-user demand. Rental values
at a higher rate prompted an increase in the Central
across all submarkets remained stable from the
submarket, enhanced metro connectivity and
previous quarter.
developing social infrastructure caused a demand spur
8
Average Capital Values High-end Segment (INR000/sf)

Location
2008
2009
2010
2011
2012
2013
2014
1Q 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
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
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
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
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

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
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
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
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
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
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
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
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
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
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

Note: The above values for mid segment typically include units of 1,600-2,000 sf.
Key to locations:
High-end Segment
Central: Lavelle Road, Off Palace Road, Off Cunnigham
South-East: Sarjapur Road, Outer Ring Road, HSR

Layout
Road, Ulsoor Road, Richmond Road
South: Kormangala, Jakkasandra
South: Koramangala, Outer Ring Road, Bannerghatta
South-West: Jayanagar, J P Nagar, Kanakpura Road,
Road, JP Nagar
Bannerghatta Road, BTM Layout
Off-Central: Frazer Town, Benson Town, Richards Town,
North: Hebbal, Bellary Road, Yelahanka, Dodballapur
Dollars Colony
Road, Jalahalli
East: Whitefield (villas)
Off-Central*: Vasanth Nagar, Richmond Town and
North: Hebbal, Yelahanka, Jakkur, Devanahalli
Indiranagar
Off-Central**: Cox Town, Frazer Town, HRBR, Benson
Town, etc.
Mid Segment
North-West: Malleshwaram, Rajajinagar
Central: Brunton Road, Artillery Road, Ali Askar Road,

Cunningham Road
East: Marathalli, Whitefield, Old Airport Road
9

In the first quarter of 2015, approximately 4,000
Hosur Road in the South-east submarket.
units were launched, of which 76% were from units
Additionally, 25% of the unit launches came in
pre-launched in the previous quarters. Whilst total
Yelahanka and Kogilu areas in the North submarket.
unit launches declined by 28% from the previous
Several villa plot launches were also noted in this
quarter, mid segments share remained strong at
quarter, especially in Southern and Northern
91%. 41% of total unit launches came in Sarjapur and
quadrants of the city.
Project Name
Developer
Location
Number of Units*
Type
Area of Units (in sf)
Sobha Silicon Oasis
Sobha Developers
Hosur Road
918
Apartments
2 BHK: 1,350
3 BHK: 1,675
Brigade Northridge
Brigade Group
Kogilu Main Road
600
Apartments
2 BHK: 1,250
3 BHK: 2,000
SNN Raj Etternia
SNN Builders
Haralur Road
576
Apartments
1 BHK: 560
2 BHK: 1,270
3 BHK: 1,670
The Tree
Provident Housing
Off Magadi Road
560
Apartments
1 BHK: 605
2 BHK: 1,000
3 BHK: 1,256
Salarpuria Sattva
Laurel Heights
Salarpuria Sattva
Group
Tumkur Road
438
Apartments
2 BHK: 992
2.5 BHK: 1,240
3 BHK: 1,416
Edge Waters
Bren Corporation
Sarjapur Road
191
Apartments
2 BHK: 1,040
3 BHK: 1,418
Shrinikethan
RNS Infrastructures
Limited
Yeshwantpur
186
Apartments
3 BHK: 3,050
4 BHK: 3,390
RMZ Azure
RMZ
Bellary Road
182
Apartments
2 BHK: 1,602
3 BHK: 2,100
After the rain
Total Environment
Yelahanka
127
Villas
4 BHK: 3,090
Green Aspire
Tetra Grand
Off Thanisandra
Road
120
Apartments
2 BHK: 866
3 BHK: 1,453
ATZ Estrella
ATZ Properties
Varthur Road
110
Apartments
2 BHK: 1,302
3 BHK: 1,780
The Urban Forest
Alchemy Real Estate
Whitefield
75
Apartments
2 BHK: 1,314
3 BHK: 1,826
* Estimated and as per market information

Around 168,000 residential units are under
stable from the previous quarter. A few projects
construction across various submarkets, with mid
nearing completion include Vaswani Reserve in
segment accounting for about 56%, followed by 26
Marathahalli, Sunrise Towers in Whitefield and HM
% in the affordable segment. Capital values of under
Grandeur in Frazer Town.
construction residential projects remained mostly
10

Net absorption of around 3.3 msf was recorded in
appreciation along the Outer Ring Road, Peripheral
Grade A developments during the first quarter of
East and Peripheral North submarkets by 6.7%, 4.2%
2015; a 7% increase from the previous quarter.
and 6.0% respectively. In contrast to these, the
Leasing of 3.89 msf was noted in this quarter, 33% of
Suburban South and Suburban East submarkets
which was in the Outer Ring Road submarket. IT-ITeS
witnessed a decline of 4.4% and 9.3% respectively.
sector dominated leasing and had a 68% in the total
Whilst rental correction in a few buildings caused this
transactions. Further, pre-commitments of
dip in the Suburban South, low demand led to a decline
approximately 0.85 msf were noted in this quarter.
in the Suburban East. Overall Grade A vacancy levels
Office rentals also appreciated in select submarkets.

Sustained demand and limited availability of quality
decreased by 1.6 percentage points due to healthy

transactions and was noted at 8.0%.
spaces resulted in Grade A weighted average rental
Retail Sector
Rentals remained stable from the previous
3.2% from the previous quarter due to a preferential
quarter in malls as well as main streets of most sub-
shift of the tenants towards other locations such as
markets. During this quarter, a few F&B, electronics,
Indiranagar and Koramangala. Benefitting from the
footwear and apparel retailers leased spaces in malls
spill over demand from nearby saturated locations,
located along Thanisandra Road and Tumkur Road.
Koramangala 80 Feet Road witnessed a 4.3% rental
In the main streets, Brigade Road rentals dipped by
appreciation from the previous quarter.
Outlook
Given the significantly high number of pre-
appreciate in select submarkets such as the Outer
launches (around 13,000), residential unit launches
Ring Road and Peripheral East due to a sustained
in the subsequent quarters are expected to be
demand.
strong. Rental and Capital values are likely to hold

steady as the existing supply presently exceeds the
demand.
Around 7.3 msf of office space supply is expected
Rentals in most malls and main streets are likely

to remain stable in the next quarter. New BEL Road
and Kamanahalli Main Road are fetching increased
enquiries from international brands, amidst limited
to be added in the next quarter, most of which is
space availability. However, rentals are expected to
likely to be in Grade A developments. Given the
gain traction in the coming quarters.
strong demand, transaction activity may remain

high in the upcoming quarters. Rentals may
11
Chandigarh
Market Overview
In the first quarter of 2015, approximately 700
units were launched in the Tri-City region. New

launches were primarily in the outskirts in
submarkets of Zirakpur, Mullanpur and Mohali. The
high-end segment witnessed improvement in
transaction activity during the quarter; however, the
capital values remained stable from the previous
quarter. Capital values in the mid segment too
remained stable across submarkets. With improved
connectivity to Mullanpur, this submarket witnessed
an increased interest from the homebuyers.
Approximately 650,000 sf of office space was

added to the Tri-City during the first quarter of 2015,
primarily in Mohali. Demand for office space
No new mall space was added to the Tri-City
improved during the quarter with significant space
region in the first quarter of 2015. Vacancy levels
take-up from companies in BFSI, construction and
during the quarter declined as retailers of
automobile sectors. Grade A office rentals softened
accessories and apparels took up space across the
during the quarter, as investors agreed to lease out
region. Demand continued to be tepid in the main
their spaces at lower rentals considering the
streets. Rentals remained stable for both malls and
prevailing subdued demand conditions.
main streets across Chandigarh
Trends & Updates

Capital values remained stable across all locations,
values in Mohali and Zirakpur hardened during the
from the previous quarter. Transaction activity in the
quarter with continued interest from end-users but
high-end segment improved during the quarter with
remained stable amidst reduced investor demand.
availability of good deals at competitive prices. Capital
12
Average Capital Values High-end Segment (INR)

4Q 2013
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 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
4Q 2013
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
Zirakpur
2,800 - 3,600
2,800 - 3,400
2,800 - 3,400
2,800 - 3,500
2,800 - 3,600
2,800 - 3,600
Mohali
3,200 - 4,000
3,000 - 3,800
3,200 - 3,800
3,200 - 4,000
3,200 - 4,200
3,200 - 4,200
Dera Bassi
3,000 - 3,200
2,800 - 3,200
2,800 - 3,400
2,800 - 3,500
2,700 - 3,500
2,700 - 3,500
Panchkula
2,800 - 3,500
2,800 - 3,400
2,800 - 3,400
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 around
700 units in the first quarter of 2015. With basic prices
primarily in the northern and southern regions such

as Mullanpur, Zirakpur and Mohali.
in the range of INR 3,200-5,000/sf, new launches were

Project Name
Developer
Location
Number of Units*
Type
Area of Units (sf)
GBP Centrum
GBP Builders
Zirakpur
300
Independent
Floors
1 BHK: 475 to 491
Central Greens
Preet Land
Promoters and
Developers
Sector 86, Mohali
280
Apartments
3 BHK: 1,460
Celestia Grand
Omaxe
Mullanpur
60
Independent
Floors
3 BHK: 1,415
Golden Oak Sanskriti

Homes
Golden Oak
Estates
Mullanpur
54
Apartments
3 BHK: 2,000
13

In 1Q 2015, capital values of under construction
Approximately 450 units across several projects in
projects increased by 2-3% across locations in
Zirakpur, Panchkula and Mohali are expected to be
Mullanpur as developers revised basic selling prices
ready for possession in the next quarter.
due to improved infrastructure in the region.

In 1Q 2015, BFSI, construction and automobile
sector companies had a major share in office space
around INR 50-60/sf/month and commercial spaces

were at INR 70-95/sf/month.
take-up. Quoted rentals of IT Parks and SEZs were
Retail Sector
The first quarter of 2015 witnessed retailer activity
with footwear and apparel retailers such as Geox and
primarily from accessories brands in mall locations
Levis taking up space in prominent locations. Rentals
across the Tri-City region with brands such as Da
across malls and main street locations remained
Milano and Inglot taking up spaces. Demand in main
street locations remained tepid during the quarter
Outlook
Capital values are likely to remain stable in the
high-end segment despite improvement in
transaction activity, considering that there exists
significant unsold inventory. New launch activity is
likely to pick up in the northern submarket of
Mullanpur. Panchkula is expected to witness
softening of mid segment capital values due to
significant availability of ready to move projects.
rentals are expected to remain stable over the next

quarter, considering the prevailing high vacancies.
Approximately 350,000 sf of mall space is
scheduled for completion in the second quarter of
2015, which is likely to increase vacancy levels in
Mohali submarket. Mall rentals are likely to remain
stable in Chandigarh city whilst they may soften
marginally in the peripheral submarkets.
No new office supply is likely to be added in the

next quarter. Demand may remain moderate and
14
Chennai
Market Overview
During the first quarter of 2015, new residential
unit launches were nearly double the previous

quarter, and stood at 3,200 units. In the festival
season during this quarter, developers launched new
projects. Developers continued to focus on the mid
segment as is evident by the same accounting for
more than 96% of the total unit launches during the
quarter. Due to proximity to IT and manufacturing
hubs, Suburban (South) (32%) and Grand Southern
Trunk (GST) Road (27%) accounted for a major share
of new launches in the quarter. The high-end
segment had a 3% share in the total launches, most
of which was concentrated in Nungambakkam and

Off-Central I.
With only 75,400 sf office space becoming
operational during this quarter, Chennai witnessed
vacancy levels, which stood at 14.5% at the end of

this quarter.
pre-commitments of nearly 547,000 sf from
Chennai did not witness any new mall supply
occupiers looking to commence operations in
addition for the fifth consecutive quarter and
premium Grade A spaces in IT parks or IT-SEZs. Whilst
completion timelines for more than 3 msf under
the entire new supply comprised of commercial
construction mall spaces are staggered across the
spaces, Grade A developments had a 27% share, all of
next three years. Supply deficiency for new malls
which was added in South-west. Driven by robust
coupled with limited churn led to a 0.12 percentage
occupier demand, gross absorption stood at 1.3 msf, of
points quarterly dip in mall vacancy levels and it
which 62% was in Grade A developments. Strong
stood at 6.50% at the end of this quarter.
demand led to a 1.2 percentage points dip in Grade A
Trends & Updates

At 2,500, new residential units that became
Nearly 35 projects were completed and developers
available for possession remained at par with the
such as Newry Properties, Ruby Builders, Marutham
previous quarter. This was primarily due to slow
Group and Jains Housing & Constructions delivered
construction pace of large township projects in the
units in this quarter. Whilst rental values largely
peripheral submarkets. Of all the completed units,
remained stable, capital values appreciated by 5-13%
77% belonged to the mid segment followed by 22% in
from the previous quarter in certain submarkets such
the high-end segment. GST Road (24%), Mogappair
as Off-Central I, Porur and Rajiv Gandhi Salai-I, due to
(10%) and Velachery (8%) witnessed the maximum
increased demand.
number of unit completions during this quarter.
15
Average Capital Values High-end Segment (INR 000/sf)

Location
2008
2009
2010
2011
2012
2013
2014
1Q 2015
Boat Club
18.0-24.0
18.0-20.0
18.0-23.0
20.0-25.0
23.0-27.0
23.0-33.0
23.0-35.0
23.0-35.0
R.A Puram*
13.0-15.0
13.0-15.0
13.0-16.5
14.0-17.0
15.0-19.0
17.0-23.0
17.0-23.0
17.0-25.0
Besant Nagar
NA
NA
NA
12.5-13.5
13.0-14.5
13.5-15.0
13.5-15.0
13.5-15.0
Kotturpuram
NA
NA
NA
12.0-14.0
14.0-16.0
14.0-20.0
14.0-20.0
14.0-20.0
Adyar
5.5-10.0
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
Poes Garden**
14.5-20.0
14.5-18.0
14.5-20.0
17.5-24.5
18.5-25.0
20.5-28.0
20.5-33.0
20.5-33.0
Nungambakkam
13.0-16.0
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
Anna Nagar
6.0-9.0
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
Kilpauk
4.0-8.0
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

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

2008
2009
2010
2011
2012
2013
2014
1Q 2015
Adyar
4.5 - 6.5
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
Rajiv Gandhi
Salai (Perungudi)
2.5 - 3.6
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
Velachery
3.8 - 4.2
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
T. Nagar
4.0 - 6.5
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
Mylapore
NA
NA
NA
8.0 - 12.5
10.0 - 15.0
12.0 - 17.0
12.0 - 17.0
12.0 - 17.0
Mogappair
NA
NA
NA
5.0 - 5.5
5.0 - 6.5
5.0 - 7.5
5.0 - 7.5
5.0 - 7.5
Kilpauk
4.5 - 6.0
4.5 - 6.0
6.0 - 8.0
7.5 - 9.5
9.0 - 12.0
9.0 - 12.0
No
availability
No
availability
Location

The time series have been adjusted to reflect the updated values

At 3,200, unit launches nearly doubled from the
such as Sholinganallur, Siruseri as well as Suburban
previous quarter as many developers launched new
(South) locations such as 200 Feet Pallavaram
projects during the first quarter, to coincide with the
Th o ra i pa k ka m Roa d , M e d ava k ka m a n d
auspicious Pongal festival. New unit launches in the
Perumbakkam witnessed significant new launches
mid segment continued to dominate and witnessed
due to their proximity to IT parks and IT-SEZs. New
more than 220% quarterly increase, as developers
launches in the high-end segment declined by 70%
focused on introducing products in this segment
over the previous quarter with launches largely
that matched the homebuyers affordability.
concentrated in Nungambakkam, Kotturpuram and
Locations along the IT corridor of Rajiv Gandhi Salai
Off-Central I.
16
Project Name
Developer
Location
Number of Units*
Type
S.I.S Queenstown
South India Shelters

India Pvt. Ltd.
Guduvanchery
424
Apartments
2 BHK: 623 to 1,226

2.5 BHK: 1,263 to 1,304
3 BHK: 1,373 to 1,508
Pinnacle Crest
Baashyam
Constructions
Sholinganallur
421
Apartments
1 BHK: 579 to 607

2 BHK: 1,109 to 1,186
2.5 BHK: 1,336 to 1,357
3 BHK: 1,582 to 1,592
Temple Waves
Amarprakash
Developers
Chrompet
405
Apartments
2 BHK: 616 to 918

3 BHK: 980
Casa Grande
Cherry Pick
Casa Grande Pvt. Ltd.
Perumbakkam
380
Apartments
1 BHK: 590 to 701

2 BHK: 1,199 to 1,354
2.5 BHK: 1,186 to 1,433
3 BHK: 1,379 to 1,624
3.5 BHK: 1,546 to 1,768
Real Value
Padmalaya Grand
Tower P,Q,E,F
Real Value Promoters
Siruseri
288
Apartments
2 BHK: 942 to 1,060

3 BHK: 1,380 to 1,454
SkyPod Residences
Vishwakarma Properties
200 Ft Pallavaram
Thoraipakkam Road
280
Apartments
2 BHK:1,111
3 BHK: 1,363
S&P Essence - Phase I
S&P Living Spaces
Ayanambakkam
200
Apartments
1.5 BHK: 560 to 566

2 BHK: 952 to 953
3 BHK: 1,746 to 1,761
Urban Tree Wow
Urban Tree Infrastructure
Medavakkam
169
Apartments
2 BHK: 926 to 1,177

3 BHK: 1,428
Jamals Caladium
Jamals Enterprises
Velappanchavadi
158
Apartments
2 BHK: 955 to 1,105

3 BHK: 1,280 to 1,385
Silver Crest
Rajkham Builders
Madurapakkam
116
Apartments
2 BHK: 1,002 to 1,072

2.5 BHK: 1,271
3 BHK: 1,258 to 1,400
Vrindavan Enclave
Amaar Foundations &

Properties
Virugambakkam
64
Apartments
2 BHK: 972 to 1,110

3 BHK: 1,200 to 1,838
Color County
Color Homes
Iyappanthangal
60
Apartments
2 BHK: 884 to 974

3 BHK: 1,124 to 1,177
Tower of Adyar
Nahar Group
Adyar
56
Apartments
3 BHK: 2,113
4 BHK: 2,384 to 2,420
Shrayans
Cara Properties
Nungambakkam
High Road
47
Apartments
4 BHK: 4,000 to 5,000
Hamlin
AKB Developers
Pallavaram
45
Apartments
2 BHK: 783 to 1,033

3 BHK: 1,265
GVSPL Raksha
Green Valley Shelters

Pvt. Ltd.
Valasaravakkam
35
Apartments
2 BHK: 1,145 to 1,165

2 BHK: 1,570 to 1,860
Green Crest
Green Valley Shelters

Pvt. Ltd.
Anna Nagar
28
Apartments
3 BHK: 1,260 to 1,345
Navin's Skanda
Navin Housing
Chrompet
16
Apartments
2 BHK: 1,032
3 BHK: 1,180
Sri Lakshmivilas
Altis Properties
Kotturpuram
11
Apartments
3 BHK: 2,392
4 BHK: 2,692
Aise
Devinrayan Housing
Nandanam
Apartments
4 BHK: 2,462
Sree Sarada Nivas
Devinarayan Housing
Mandaveli
Apartments
3 BHK: 2,494
Aquarelle
Devinarayan Housing
Kanathur
Apartments
3 BHK: 5,850 to 5,968
Sangeeth
Arihant Foundations
Shanthi Colony
Apartments
3 BHK: 2,000
17

As of 1Q 2015, under construction units across
houses and duplexes. Nearly one-third of these units
various segments were around 33,600. As per
consist of new phases in existing township
current estimates, these units are likely to complete
developments in peripheral locations such as
by the end of 2015. More than 90% of these units are
Chrompet, Oragadam, Vandalur-Kelambakkam
apartment projects and the remaining are villas, row
Road, Perambur and Siruseri.

Despite the improving occupier demand, Grade A
South (32%) witnessed maximum net absorption of
net absorption levels dipped by 19% from the
Grade A spaces. IT-ITeS sector was the major
previous quarter and stood at 495,000 sf at the end
demand driver and accounted for nearly 95% of
of the first quarter of 2015. This decline was
total gross absorption during the quarter. Rentals
primarily due to change in employee to space ratio
largely remained stable in all sub markets, as
requirements of a few major IT-ITeS companies. The
compared to the previous quarter.
IT corridor of Suburban South (64%) and Peripheral
Retail Sector
Established main streets such as Anna Nagar 2nd
(not affected by ongoing infrastructure upgrades) to
Avenue witnessed a steep rental escalation of 15%
charge higher rentals. Purusawakam High Road too
compared to the last quarter as strengthening
witnessed a 4% rental rise due to higher demand
demand and entry of new retailers prompted owners
from footwear and apparel retailers.
Outlook
Whilst more than 4,300 residential units remain in
soft launch stages, the number of new unit launches
during the next quarter may remain at par with 1Q
2015, as developers may channelize larger efforts
towards completion of under construction units.
levels may increase in the next quarter due to this

substantial new supply addition.
As no new mall supply is likely to be added in the
next quarter, mall vacancy levels may decline further
as prevalent demand for mall spaces from footwear,
In the next quarter, nearly 1.5 msf of new office
F&B and apparel retailers remains strong. Anna
supply is expected be added. Of the total new supply,
Nagar - 2nd Avenue and Pondy Bazar may witness
65% is expected to constitute Grade A spaces, all of
rental appreciation due to healthy demand and
which will become operational in Suburban South.
limited options for prime retail spaces.
Whilst leasing may strengthen, overall vacancy
18
Delhi - National Capital Region (NCR)

Market Overview
With around 2,800 new unit launches, Delhi-NCR
witnessed a decline of approximately 68% during

the first quarter of 2015, as compared to the
previous quarter. The decline in new launches was
primarily due to increasing unsold inventory, forcing
developers to restrict new launches. Capital values
remained stable from the previous quarter across all
submarkets in Delhi-NCR. With stable demand,
rentals also remained stable during the quarter
across most submarkets.
With Grade A office supply addition of about 2.1
msf in the first quarter of 2015, a marginal decline of

around 2.9% was noted from the previous quarter.
This quarter witnessed net absorption of more than
0.5 percentage points to 14.4%. Demand remained
0.6 msf in Grade A developments, a 58% decline
high for mall spaces in Ghaziabad, Gurgaon and
from the previous quarter. No pre-commitments
South Delhi. Rental values in malls remained stable
were noted during the first quarter of 2015. Rental
from the previous quarter. Main street locations
values firmed up significantly in Gurgaon CBD, due
across Greater Kailash, Lajpat Nagar and Green Park
to limited availability and significant demand.
witnessed healthy space take-up during the quarter.
No new mall supply was added in the first quarter

of 2015, resulting in overall mall vacancy declining by
Trends & Updates

Due to subdued transaction activity, capital
be recovering with availability of several value deals
values across all segments of various submarkets
in this segment. Although the market remains buyer
remained stable from the previous quarter.
friendly, capital values continued to remain stable
Transaction activity in the luxury segment seems to
due to existing high unsold inventory.
19

2011
2012
2013
2014
1Q 2015
South-West
42.0 - 50.0
50.0 - 60.0
45.0 - 60.0
42.5 - 56.0
42.5 - 56.0
South-East
25.0 - 35.0
25.0 - 45.0
25.0 - 40.0
25.0 - 38.0
25.0 - 38.0
South Central
27.0 - 40.0
27.0 - 50.0
27.0 - 50.0
27.0 - 46.0
27.0 - 46.0
Central
50.0 - 65.0
60.0 - 80.0
60.0 - 90.0
60.0 - 90.0
60.0 - 90.0
Gurgaon
8.5 - 21.0
10.5 - 32.0
11.0 - 27.5
11.0 - 25.0
11.0 - 25.0
Noida
5.5 - 7.5
6.2 - 8.1
7.0 - 8.5
7.0 - 9.0
7.0 - 9.0
Location

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

2011
Location
2012
2013
2014
1Q 2015
South-East
15.0 - 28.0
25.0 - 30.0
25.0 - 30.0
22.0 - 27.0
22.0 - 27.0
South Central
25.0 - 30.0
25.0 - 35.0
25.0 - 35.0
25.0 - 35.0
25.0 - 35.0
Gurgaon
5.0 - 9.0
6.8 - 10.5
7.5 - 11.5
8.0 - 10.0
8.0 - 10.0
Noida
4.2 - 5.8
4.3 - 6.2
5.0 - 6.0
5.0 - 6.5
5.0 - 6.5

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.
Village, Geetanjali Enclave, Safdarjung Enclave,
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-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)
South-central: Uday Park, Green Park, Saket, Asiad

Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar, etc.
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
Noida: Sectors 34-37, 39-41, 44, 50, 51, 92, 93, 96-98,
128 and 133
20

With approximately 2,800 unit launches in the first
65% of the units launched during the quarter. In
quarter of 2015, there was a decline of around 68%
Noida, launches in Noida extension submarket were in
from the previous quarter. Nearly 42% of units
the affordable segment, Greater Noida submarket in
launched during the quarter were in the mid segment,
the mid segment and along the Noida expressway
39% in the affordable segment and remaining 19% in
submarket in the high-end segment.
the high-end segment. Noida accounted for around
Project Name
Developer
Location
Number of Units* Type
Amrapali Enchante
Amrapali
Sector 16B, Greater

Noida (West)
650
Apartments
2 BHK: 850 to 900

3 BHK: 1,050 to 1,150
Familia
Nimai Group
Sector 7, Sohna
650
Apartments
2 BHK: 1,150
3 BHK: 1,450
Sports Home
Devsai Construction
Sector 1, Greater
Noida (West)
366
Apartments
2 BHK: 1,140
4 BHK: 3,210
Bollywood Towers
Amrapali
Sector 1, Greater
Noida (West)
360
Apartments
2 BHK: 975 to 1,100
Omaxe Riyasat
Omaxe
Sector 93B, Noida
276
Apartments
2 BHK: 1,225
3 BHK: 1,675
The Crest
DLF
DLF Phase V, Gurgaon
250
Apartments
4 BHK: 3,081 to 3,497
Mahagun Villaments
Mahagun Group
Sector 10, Greater

Noida (West)
104
Apartments
3 BHK: 2,600
4 BHK: 2,950
Ayana
Raheja
Sector 79B, Gurgaon
96
Independent
Floors
3 BHK: 1,800 to 2,430

4 BHK: 2,564
Aspire
Ace Developers
Sector 1, Greater Noida

(West)
72
Independent
Floors
2 BHK: 1,160
3 BHK: 1,365
4 BHK: 1,595

Developers continued offering phase-wise
quarter, more than 10 projects are likely to be
possession in projects on Golf Course Extension
completed with more than 5,000 units across
Road and in New Gurgaon submarkets. In the next
Gurgaon and Noida

With Grade A office supply recorded at about 2.1
Due to low leasing, overall vacancy levels in
msf in the first quarter of 2015, it declined marginally
Grade A properties increased by 1.1 percentage
by around 2.9% from the previous quarter.
points from the previous quarter, and was noted at
Approximately 56% of the new supply was in IT-
27.1%. Weighted average Grade A rentals in Gurgaon
SEZs, followed by 29% in IT Parks and the rest in
CBD increased by more than 22.0% amidst strong
non-IT developments. The quarter witnessed net
demand and limited availability. Weighted average
absorption of over 0.6 msf in Grade A developments,
rentals in Noida increased by over 10% due to
a 58% decline from the previous quarter. The IT-ITeS
addition of spaces at higher rentals.
sector had the highest share in leasing (39%),

followed by consulting (13%) and the manufacturing
sectors (13%). No pre-commitments were noted
during the quarter.
21
Retail Sector
Mall vacancy levels were recorded at 14.4%, a 0.5
of 7.1% in DLF Galleria, Gurgaon. Rentals in other
percentage points decline from the previous quarter.
main street locations maintained status quo during
Demand for mall spaces was driven mainly by
the quarter. F&B and jewellery retailers were the key
retailers of accessories and apparel such as Carat
demand generators across main streets with brands
Lane, Fossil, Nappadori, etc. Robust demand and
such as Subway, The Backyard and Senco Gold,
limited availability led to a quarterly rental increase
expanding their presence in the city.
Outlook
Developers are likely to focus on completing
Nearly 1.9 msf of new mall supply is scheduled for
under construction projects rather than launching
completion in the next quarter across Ghaziabad,
new projects in the short term. As a result, new
South Delhi and West Delhi. With tepid demand,
launch activity may remain subdued in the next
rental values are expected to remain stable. In
quarter. In the absence of significant triggers for
addition, infusion of new supply would lead to an
demand improvement, capital values in Delhi and
increase in vacancy levels in select submarkets.
Gurgaon may remain stable in the next quarter.
Rentals across most main street locations are
However, capital values in Noida may strengthen in
expected to remain stable. Prominent main street
the next quarter due to continued end-user demand.
locations such as Connaught Place, Lajpat Nagar
Approximately 3.9 msf of office space is likely to

be added in the next quarter. Although some of this
and Greater Kailash II are expected to witness

continued retailer interest.
may be deferred, vacancy levels are likely to

increase, as net absorption is not likely to keep pace
with the supply.
22
Hyderabad
Market Overview
Hyderabad residential segment witnessed
launch of nearly 3,300 residential units during the

first quarter of 2015, nearly thrice the previous
quarter. About 98% of new unit launches were in the
north-west quadrant of the city, mainly Madhapur
and Gachibowli. This quadrant remained most active
in terms of new unit launches and construction
activity. As compared to the previous quarter, rental
and capital values largely remained stable across
submarkets. However, high-end segment capital
values in Banjara Hills and Jubilee Hills appreciated
by 3% and 6%, respectively, from the previous
quarter, due to limited availability amidst high

demand. Mid segment capital values in Jubilee Hills,
SLN Lumbini mall, measuring 150,000 sf, is
Madhapur and Gachibowli also appreciated
currently undergoing fit-outs by tenants and is
marginally by 1-2%, due to continued demand
expected to commence operations in the third quarter
emanating from IT-ITeS professionals employed in
of 2015. This quarter also witnessed limited
the nearby office hubs.
transactions and hence, mall rentals remained stable
The commercial real estate market witnessed an
across all sub-markets and overall mall vacancy levels
influx of 1 msf of office space in 1Q 2015, of which
remained stable at 7%. Limited availability of quality
65% was in Grade A developments. Grade A net
spaces in malls led to spill-over of demand to main
absorption declined by 36% to around 0.6 msf at the
streets and subsequently healthy leasing activity was
end of this quarter. Whilst overall vacancy for the
noted in main streets such as Jubilee Hills, Kukatpally
quarter declined by 0.6 percentage points to 17.6%,
and Chandanagar. The demand primarily emanated
Grade A vacancy in Suburban Madhapur submarket
from apparels and F&B retailers. Despite healthy
increased marginally by 0.5 percentage points and
leasing, main street rentals remained stable from the
was noted at 5.4%.
previous quarter, across the city.
Trends & Updates

The first quarter of 2015 witnessed moderate
respectively, from the previous quarter, primarily
enquiries for ready residential properties. Mid
due to a healthy demand amidst limited supply of
segment capital values in Jubilee Hills and
quality projects. Around 320 units were completed
Madhapur-Gachibowli appreciated by 1% and 2%,
in the first quarter of 2015.
23

2009
2010
2011
2012
2013
2014
1Q 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
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
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
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
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
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
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
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
Location

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

2009
2010
2011
2012
2013
2014
1Q 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
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
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
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
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
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
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
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
Location


The first quarter of 2015 witnessed three times
this quarter, all in the high-end segment. New
residential unit launches compared to the previous
projects were launched primarily in Madhapur and
quarter. Approximately 3,300 units were launched in
Gachibowli.
Project Name
Developer
Location
Number of Units*
Type
Highfields
Prestige Constructions
Gachibowli
2,240
Apartments
2 BHK: 1,283
2.5 BHK: 1,410 to 1,492
3 BHK: 1,742
3.5 BHK: 1,919 to 1,993
4 BHK: 2,713 to 2,848
3 BHK+Home Theatre: 4,070
Etania
Lansum
Gachibowli
552
Apartments
3 BHK: 1,895 to 3,255

4 BHK: 4,085
Ivy League
Prestige Constructions
Madhapur
349
Apartments
2 BHK: 1,327 to 1,355

3 BHK: 1,738 to 2,051
4 BHK: 3,031 to 3,498
24
Project Name
Developer
Location
Number of Units*
Type
Northstar District 1
Northstar Homes
Gachibowli
151
Apartments
3BHK: 1,600 to 2,400
Fortune Galaxy
Fortune Developers
Banjara Hills
55
Apartments
3 BHK: 1,445 to 2,400

Studio: 500 to 900

The North-West quadrant continued to witness
at Jubilee Hills, Madhapur and Gachibowli too
robust construction activities. Capital values of high-
appreciated marginally by 1-2% from the previous
end segment projects at Banjara Hills and Jubilee Hills
quarter, due to sustained demand driven by IT-ITeS
appreciated by 3% and 6%, respectively, from the
professionals, coupled with availability of good
previous quarter due to limited availability amidst
offerings at competitive prices.
high demand. Capital values of mid segment projects

In the commercial office sector, majority of the
coupled with high supply addition in Grade A
supply was concentrated in the suburban locations
developments in Suburban Madhapur submarket
of Madhapur (65%) and Gachibowli (21%). Although
resulted in a 0.5 percentage point increase in
IT-ITeS sector dominated leasing activity with a 65%
vacancy. Rentals continued to remain nearly stable
share, majority of the space (53%) was leased in
across all submarkets, except the Prime Suburban
non-IT buildings. Grade A net absorption for the
submarket where the weighted average rental
quarter was 0.6 msf, recording a 36% quarterly
values declined by 6% due to an increase in vacant
decline. Whilst overall vacancy declined by 0.6
spaces amidst high supply.
percentage points (to 17.6%), low absorption
Retail Sector
SLN Lumbini mall, measuring 150,000 sf, is
and were noted at 7%. Healthy leasing activity was
currently undergoing fit-outs by tenants and is
noted in main streets such as Jubilee Hills,
expected to commence operations in the third
Kukatpally and Chandanagar. Demand primarily
quarter of 2015. This quarter witnessed limited
emanated from apparel & F&B retailers. Despite
transactions and hence, mall rentals remained
healthy leasing, main street rentals remained stable
stable across all sub-markets. Overall mall vacancy
across the city.
levels remained stable from the previous quarter
25
Outlook
High-end segment capital values may appreciate
marginally in Banjara Hills and Jubilee Hills in the
next quarter. Mid segment capital values in
submarkets such as Banjara Hills, Jubilee Hills,
Madhapur and Gachibowli may witness marginal
appreciation due to sustained demand and
availability of good offerings at competitive prices.
quality office spaces in Madhapur may result in

heightened demand in Gachibowli.
With no new supply addition and limited
availability in existing malls, rentals are likely to
remain stable in the next quarter. Rentals across
most main streets are expected to remain stable in
the upcoming quarter as leasing is expected to
Nearly 2.6 msf of supply infusion is expected in
remain steady. However, access related issues in
the upcoming quarter. Rental values in Suburban
specific micro-markets such as Raj Bhavan Road /
Gachibowli submarket may appreciate marginally in
Somajiguda may be a reason for waning retailers
the next quarter as upcoming supply is likely to be
interest, which may lead to lower demand and
introduced at higher rentals. Limited availability of
subsequently lower rentals.
26
Jaipur
Market Overview
Approximately 1,200 units were launched in
Jaipur during the first quarter of 2015, a 44%

decline from the previous quarter. The quarter
witnessed unti launches primarily in the mid
segment. Locations across Mansarovar witnessed
the highest number of new unit launches followed by
Sirsi Road and Vaishali Nagar. Capital Values
appreciated marginally (around 1-3%) in both mid
and high-end segment.
No new office supply was added in the first
quarter of 2015. Transaction activity remained
stable during the quarter with demand primarily

from IT-ITeS and manufacturing companies. Rentals
maintained status quo from the previous quarter,
across all submarkets.
(M.I.) Road and Malviya Nagar. During the quarter,

demand for mall spaces arose from large apparel,
No new mall supply was added during the first
lifestyle and F&B retailers. Rentals across malls and
quarter of 2015. Healthy transaction activity was
main street locations maintained status quo during
noted in the main street locations of Mirza Ismail
the quarter.
Trends & Updates

Capital values increased in the range of 1-2%
values remained stable in Bapu Nagar, C-Scheme
across high-end and mid segment properties during
witnessed the highest increase of 2.1% followed by
the first quarter of 2015, due to stable demand from
Civil Lines (1.4%) and Malviya Nagar (1.3%).
end-users. In the high-end segment, whilst capital
27
Average
Average
Capital
Capital
Values
Values
High-end
High End
Segment
(INR 000/sf)
(INR)
1Q 2014
2Q 2014
C- Scheme
8,000-10,500/sf
8,000-10,500/sf
8,000-11,000/sf
8,000-11,000/sf
8,200-11,200/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
80,000-100,000/sqyd
80,000-110,000/sqyd
80,000-115,000/sqyd
82,500-115,000/sqyd
75,000-95,000/sqyd
75,000-100,000/sqyd
75,000-105,000/sqyd
77,500-105,000/sqyd
Location
Malviya Nagar 75,000-95,000/sqyd
3Q 2014
4Q 2014
1Q 2015

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
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
Malviya Nagar
60,000-75,000/sqyd
60,000-75,000/sqyd
60,000-75,000/sqyd
65,000-75,000/sqyd
65,000-77,500/sqyd
Vaishali Nagar
2,900-3,300/sf
2,900-3,400/sf
2,900-3,600/sf
2,900-3,600/sf
3,000-3,600/sf
Mansarovar
3,000-3,400/sf
3,000-3,500/sf
2,800-3,800/sf
2,800-3,850/sf
2,800-3,850/sf
Jagatpura
2,900-3,200/sf
2,900-3,300/sf
2,900-3,400/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 first quarter of 2015, new project launches
The quarter witnessed launches only in the mid
were primarily in the Western peripheries of the city.
segment. The Basic Sale Price (BSP) of the new
Nearly 1,200 units were launched, of which 39%
launches ranged from INR 2,400-3,500/sf.
were in Mansarovar followed by 34% in Sirsi Road,

17% in Vaishali Nagar and remaining in Jagatpura.
Project Name
Developer
Location
Number of Units*
Type
Terraza Greens
Shivank Group
Mansarovar
380
Apartments
2 BHK: 1,257 to 1,390

3 BHK: 1,321 to 1,782
Ozone
SNG Group
Sirsi Road
312
Apartments
2 BHK: 950 to 1,509

3 BHK: 1,200 to 2,000
The Horizon
Vardhman Group
Vaishali Nagar
204
Apartments
2 BHK: 900 to 1,200

3 BHK: 1,420 to 1,545
Bhavyaa Green
Aradhana Buildtech
Jagatpura
108
Apartments
2 BHK: 1,050 to 1,310

3 BHK: 1,560 to 1,580
Atelier Erica
Apeksha Group
Sirsi Road
98
Apartments
2 BHK: 980
3 BHK: 1,300 to 1,450
The Trump
IPG Group
Mansarovar
90
Apartments
2 BHK: 952 to 1,300

3 BHK: 1,300
28

Around 11 projects began offering possession in
submarkets. The next quarter is expected to witness
the first quarter of 2015. Submarkets of Vaishali
completions primarily in the submarket of C-schme
Nagar witnessed the highest share of completions
and Sanganer.
along with projects on Ajmer Road and Sanganer

No new office supply was added in the first quarter
District (SBD) at INR 35-50/sf/month. IT-ITeS and
of 2015. Rental values in the Central Business District
manufacturing companies had a majority share in
(CBD) of MI Road and C-Scheme remained stable at
office space take-up during the quarter.
INR 65/sf/month and that for Secondary Business
Retail Sector
No new mall supply was added during the first
apparels and F&B retailers such as Van Heusen, Allen
quarter of 2015. Demand for mall spaces was primarily
Solly and Dunkin Donuts. Rentals remained stable
from large lifestyle and apparel brands such as Marks
from the previous quarter across malls and main
& Spencer and Shoppers Stop. Main street locations of
street locations.
MI Road and Malviya Nagar witnessed interest from
Outlook
Capital values in the residential sector are likely
to remain stable in the short term with marginal
improvement in submarkets of C-scheme and Sirsi
Road, due to bettering infrastructure. Considering
that only a few projects are currently in the prelaunch stages, number of new launches are likely to
decline in the future periods.
New office space measuring 80,000 sf is
values are expected to remain stable with stagnant

demand for office space.
No new mall supply is expected to be added in the
next quarter. Rentals are expected to remain stable
in malls due to existing high vacancies. Main street
location of MI road, Malviya Nagar and Vaishali
nagar are expected to witness slight increase in
rentals due to increased interest from retailers.
expected to be added during the next quarter. Rental
29
Kolkata
Market Overview
New residential unit launches declined by about
40% from the previous quarter, with nearly 2,200

units launched in the first quarter of 2015.
The
decline in unit launches was primarily due to low

activity in North and South Peripheral locations. Mid
segments share was the highest in total unit
launches, at 78%, whilst the remaining was
contributed by the high-end segment. Capital values
remained stable from the previous quarter, across
submarkets and segments.
Commercial office sector witnessed a total supply
addition of 179,000 sf in 1Q 2015, about 60% lower

than the previous quarter. Supply during the quarter
was concentrated in the CBD and Salt Lake
submarkets with 64% and 36% share, respectively.
Overall net absorption during the quarter increased
by 17% from the previous quarter and was around
231,000 sf. Overall vacancy levels at the end of 1Q
2015 were 33.1%. Rentals largely remained stable
from the previous quarter, across submarkets owing
to low demand and high vacancy.
subdued leasing activity compared to the previous

quarter. Mall supply of about 300,000 sf was
deferred and as a result, the mall stock remained at
3.87 msf. Mall vacancy dropped by 0.06 percentage
points from the previous quarter, and was noted at
3.11%. Demand emanated primarily from home
furnishings and apparel brands during the quarter.
Rental values remained stable during the quarter
across main streets and malls.
During 1Q 2015, main streets continued to witness

healthy leasing activity, whilst malls reported
Trends & Updates

Around 4,300 units were completed in 1Q 2015,
units were concentrated in South-east submarket
significantly higher than the previous quarter as
(primarily EM Bypass), 26% in North-peripheral
many delayed projects were also completed during
submarket (Barasat and Birati) and the remaining
this quarter. Of the total units completed, around
were spread across various submarkets. Some of the
39% were in the high-end segment, 33% in the mid
prominent projects completed during the quarter
segment whilst the remaining 28% were in the
include Urbana in South-east submarket and Larica
affordable segment. Nearly 36% of the completed
in North-peripheral submarket.
30
Average Capital Values High-End Segment (INR 000/sf)

2014
1Q 2015
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
5.8 - 9.2
5.8 - 9.5
6.0 - 10.5
6.2 - 11.0
6.2 - 11.0
8.9 - 13.0
10.0 - 15.0
10.0 - 15.0
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
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
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
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


2009
2010
2011
2012
2013
2014
1Q 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
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
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
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
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
Location

Key to Locations:
High-end Segment:
South: Southern Avenue, Hindustan Park, Triangular
Park, Lake Terrace.
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.
Mid segment:
South: Golf Green, Tollygunge, Lake Gardens, Jodhpur Park
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
Central: Park Street, Camac Street, Shakespeare Sarani,

Minto Park, Elgin Road, Lee Road, Loudon Street, Rowdon
Street.
North: Jessore Road, Ultadanga, Shyambazar, Bagbazar,

Girish Park, Manicktala, Dum Dum
North: Kankurgachi, Lake Town, VIP Road, Ultadanga,

Narkeldanga Main Road
North peripheral: BT Road, Barasat, Madhyamgram,

Sodepur
East: Salt Lake
South peripheral: Garia, Narendrapur, Sonarpur,
North-East: New Town, Rajarhat
South-west peripheral**: Joka, Maheshtala, Budge

Budge, Thakurpukur
31

New residential unit launches dropped by about
about 78% catered to the mid segment, whilst the
40% from the previous quarter, with 2,200 units
remaining to the high-end segment. A few theme-
launched in the first quarter of 2015. The decline in
based projects were launched during the quarter in
unit launches was primarily due to low launch activity
Rajarhat and EM Bypass in North-east and South-east
in North and South peripheral locations wherein large
submarkets, respectively. A few developers also
project launches were deferred due to approval
offered home loan interest rates as low as 7-8%
delays. Of the total unit launches during the quarter,
(under special schemes) to attract buyers.
Project Name
Developer
Location
Number of Units*
Type
Springfield
Unimark Group
Rajarhat
522
Apartments
2 BHK: 923 to 1,008

3 BHK: 1,160 to 1,417
4 BHK:1,711 to 1,738
Galaxia 2
Siddha Group
Rajarhat
408
Apartments
2 BHK: 1,005 to 1,090

3 BHK: 1,230 to 1,370
The Pyramid
Mounthill Realty
Rajarhat
340
Apartments
2 BHK: 969
3BHK: 1,301 to 1,536
Richmond Park (Phase 1) Eden Group
Atlas More
150
Apartments
2 BHK: 844 to 994

3 BHK:1,035 to 1,318
Zen
PS Group/ Srijan
Realty
Topsia
117
Apartments
3 BHK: 2,123 to 2,317

4 BHK: 2,831 to 2,940
Belvedere
Eden Group
Nayabad
75
Apartments
1 BHK: 400 to 459

2 BHK: 763 to 987
3 BHK: 1,133 to 1,342
Kings Hut (Phase 2)
Real Networth Builders
Rajarhat
72
Apartments
2 BHK: 762 to 875

3 BHK: 930 to 1,262
Sky Terraces
Eden Group
Nayabad
63
Apartments
2 BHK: 972 to 1,029

3BHK: 1,121 to 1,484
Tolly Signature Plus
Eden Group
Tollygunge
62
Apartments
2 BHK: 956 to 1,151

3 BHK: 1,294 to 1,660
Orange Nest
Cancun Group
Rajarhat
56
Apartments
2 BHK: 880 to 1,040

3 BHK: 1,135 to 1,300
Fabulous Duo
Fabulous Group
Rajarhat
48
Apartments
2 BHK: 872 to 1,032

3 BHK: 1,269 to 1,464
Sarovar Residency
Sweet Hut Group
Rajarhat
45
Apartments
2 BHK: 810 to 9502

3 BHK: 1,270
Avion
Sri Siddhi Vinayak
Rajarhat
41
Apartments
1 BHK: 482
2 BHK: 700 to 891
3 BHK:1,016 to 1,310
Sinjini Apartment
Sweet Hut Group
Rajarhat
38
Apartments
2 BHK: 900 to 937

3 BHK: 1,145 to 1,280
Elanza
Magnolia Infra
Rajarhat
32
Apartments
2 BHK: 845 to 875
Aspire
Magnolia Infra
Rajarhat
32
Apartments
2 BHK: 650 to 720

3 BHK: 920 to 1,150
Iris
Cancun Group
Rajarhat
30
Apartments
1 BHK: 561
2 BHK: 704 to 915
Jeevandeep
Banyan Tree Group
Rajarhat
25
Apartments
1 BHK: 487
2 BHK: 810 to 1,032
3 BHK:1,122
Sikha Tuku
Unimark Group
Garia
14
Apartments
3 BHK: 1,500 to 1,635
Palatial
Saltee Group
Syed Amir Ali Avenue
13
Apartments
4 BHK: 4,500
Exotica (Block K)
Eden Group
EM Bypass
Apartments
2 BHK: 920 to 983
32

Approximately 5,700 units were in the final
construction projects remained stable across
stages of construction and are likely to be delivered
submarkets. However, select projects in the North-
in the next quarter. Prominent projects that are
east and North submarkets mid segment witnessed
nearing completion include Orbit Crystal in the
marginal appreciation of about 2-3% on the back of
South-west submarket and Clubtown Gateway in the
healthy demand owing to the locations proximity to
North-east submarket, both catering to the high-end
IT hubs and improving physical infrastructure.
segment. In 1Q 2015, capital values of under

Around 178,500 sf of office space was added in 1Q
increase of 16% from the previous quarter. However,
2015, about 63% lower than the previous quarter.
the total Grade A net absorption was higher
This was primarily due to deferment of a few large
(288,000 sf) due to relocations from lower grade
projects, owing to subdued demand. Nearly 64% of
properties. About 92% of the total absorption was
total supply added during the quarter was
noted in the peripheral submarkets of Salt Lake
concentrated in the CBD, whilst the remaining 36%
(75%) and Rajarhat (17%). Overall vacancy levels at
was in the Salt Lake submarket. Total net absorption
the end of 1Q 2015 were 33.1% whilst the rentals
during the fourth quarter was noted at 231,000 sf, an
remained stable from the previous quarter.
Retail Sector
During 1Q 2015, main streets witnessed healthy
of retail space in prime main street of Elgin Road in
leasing activity, whilst it remained subdued in malls as
central Kolkata. Mall supply of about 300,000 sf was
compared to the previous quarter. Central locations
deferred and so the mall stock remained at 3.87 msf.
such as Camac Street, Elgin Road, Theatre Road and
Hence, mall vacancy dropped by 0.06 percentage
Park Street led the leasing activity in both main
points and was noted at 3.11%. Global restaurant chain
streets and malls. Home furnishings and apparels
- Thank God Its Friday (TGIF) leased about 9,800 sf in a
were the most active segments during the quarter.
mall located on Elgin Road. Rental values remained
International apparel brand Marks & Spencer
stable during the quarter across main streets and
expanded its presence in the city by leasing 16,000 sf
malls in most sub-markets.
33
Outlook
Total unit launches in the next quarter are likely
in the next quarter considering the enquiry levels
to be higher than the current quarter, considering
and pre-commitments. However, as demand is
that there are significant projects in the pre-launch
unlikely to keep pace with the upcoming supply,
stages. Rajarhat in the North-east submarket is
vacancy levels are expected to increase
likely to contribute significantly to the new launches
substantially. As a result, rentals are expected to
along with peripheral locations in North (BT Road,
remain stable or witness marginal downward
Madhyamgram, and Barasat) and South (Garia, Joka,
pressure in peripheral submarkets of Salt Lake and
Sonarpur). Capital values are likely to remain stable
Rajarhat.
across submarkets.
During the next quarter, mall supply of about
Commercial office sector is anticipated to witness
638,000 sf is likely to be added, which would be
huge supply addition of about 1.9 msf in the next
concentrated in South and West Kolkata. Healthy
quarter, of which 75% is previously deferred supply.
leasing activity is anticipated across malls and main
Nearly 66% of this upcoming supply would be
streets, considering the enquiry levels and
concentrated in Sector-V, Salt Lake submarket,
availability of retail spaces. Rentals are expected to
followed by 15% in Rashbehari Connector
remain stable across most malls and main streets.
submarket. Net absorption is anticipated to improve
34
Mumbai
Market Overview
During the first quarter of 2015, Mumbai
witnessed approximately 4,000 unit launches, a

decline of 11% from the previous quarter. Subdued
demand led to developers refraining from launching
new projects and focussing on completion of
existing under-construction projects.
Approximately 92% of the units launched in this
quarter were in the Eastern Suburbs, followed by 3%
in the Western Suburbs - Prime, 3% in Western
Suburbs and remaining 2% in Navi Mumbai. Project
launches in the Eastern Suburbs were between
Kanjurmarg and Mulund where erstwhile industrial

plots are being redeveloped. Despite subdued
demand, capital values were stable across all submarkets from the previous quarter.
In the retail sector, overall mall vacancies

increased 1.0 percentage points to 17.0% at the end
of 1Q 2015. The increase in vacancy was due to exits
Mumbai witnessed office net absorption of
in malls located at Thane and Mulund. Limited
approximately 1.1 msf, an increase of 24% from the
availabilities and continued demand for space
previous quarter. Net absorption was primarily
resulted in mall rentals appreciating at Goregaon,
concentrated in Malad-Goregaon (27%), Thane-
Lower Parel and Vashi in the range of 7-9% from the
Belapur Road (23%) and Powai (16%). IT-ITeS (65%),
previous quarter. Demand in these malls was
BFSI (9%), and manufacturing (9%) sectors drove
primarily from F&B, lifestyle and apparel brands.
transaction activity during the quarter. Pre-
Stable demand kept rentals unchanged across most
commitments of 284,000 sf were noted during the
major main streets. High demand (primarily from
quarter primarily in a development nearing
F&B and apparel retailers) led to a quarterly increase
completion in Bandra-Kurla Complex. New supply for
of 15% in main street rentals at Vashi.
the first quarter was approximately 1.1 msf. With

continued supply addition, Grade A vacancy
increased 1.1 percentage points over the quarter and
was noted at 21.7%.
Trends & Updates

Despite subdued demand, capital values of
stable during the quarter.
ready residential properties largely remained
35

2008
2009
2010
2011
2012
2013
2014
1Q 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
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
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
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 - 48.0
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 - 18.0
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
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)

2008
2009
2010
2011
2012
2013
2014
1Q 2015
South
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
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
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
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
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
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
Location

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
36

Approximately 4,000 units were launched in the
large unit size offerings was launched in Mulund, due
first quarter of 2015, a decline of 11% from the
to which 3 BHK offerings dominated unit launches
previous quarter. Mid and high-end segment
with a 53% contribution, followed by 2 BHKs (24%),
contributed 49% and 51% respectively to total unit
4 BHKs (8%), 1 BHKs (8%) and 1.5 BHKs (7%).
launches during the quarter. A premium project with
Project Name
Developer
Location
Number of Units*
Type
Eternia
Oberoi Realty
Mulund
1,100
Apartments
3 BHK: 880 to 1,012 sf*
Runwal Forest
Runwal Group
Kanjurmarg
1,100
Apartments
1 BHK: 725 sf
2 BHK: 1,025 to 1,200 sf
3 BHK: 1,575 to 1,800 sf
Enigma
Oberoi Realty
Mulund
600
Apartments
3 BHK: 1,257 sf*

4 BHK: 1,862 sf*
One Spirit
Nirmal Lifestyle
Mulund
480
Apartments
1 BHK: 639 sf
2 BHK: 882 sf
3 BHK: 1,143 sf
Alta Vista
Spenta Corporation
Chembur
360
Apartments
1 BHK: 690 to 715 sf

2 BHK: 989 to 1,108 sf
3 BHK: 1,452 to 1,582 sf
Lamansion
K Mordani Realty
Bandra East
146
Apartments
2 BHK: 1,225 to 1,235 sf

3 BHK: 1,575 to 1,585 sf
Prisma
Oberoi Realty
Jogeshvari Vikhroli
Link Road
100
Apartments
4 BHK: 1,691 to 2,075 sf*
Akshar Alvario
Akshar Developers
Nerul
92
Apartments
2 BHK: 1,195 to 1,210 sf

3 BHK: 1,805 to 2,120 sf
#
Estimated and as per market information
* Based on carpet area

Both peripheral and suburban locations
witnessed healthy construction activity during the
first quarter of 2015. Despite subdued demand,
developers held on to the capital values. With an aim
to increase sales velocity, a few developers offered

subvention schemes and low down payment options
whilst some collaborated with financial institutions
to offer lower interest rates for a certain period.

New office supply of 1.1 msf became operational in
Mumbai, all of which was in Grade A developments.
Supply was nearly half the previous quarter and was
concentrated in Kurla (45%), Malad-Goregaon
(38%) and Lower Parel (17%). Low demand resulted

in CBD rentals declining by 10% during the quarter.
Rentals in all other submarkets continued to be
quoted in a similar range during the first quarter.
37
Retail Sector
High demand coupled with limited availabilities
resulted in main street rentals at Vashi increasing by
15% over the quarter. Stable demand resulted in
rentals remaining unchanged across all other main
streets. Mall rentals appreciated in Vashi (9%),
Goregaon (8%) and Lower Parel

quarter. Select malls in Goregaon
are looking to get in new brands
densities and maintain their
amongst competitors.
(7%) during the

and Lower Parel
to boost trading
distinctiveness
Outlook
In February 2015, the Municipal Corporation of
as Lower Parel and Goregaon in the upcoming
Greater Mumbai released draft Development Plan
months due to high demand and limited quality
2034 which proposes higher FSI of upto 8,
availabilities; rentals in all other sub-markets are
depending on the location. This may lead to a decline
likely to remain stable.
in project launches, as developers may refrain from

launching new projects until these regulations come
into effect. Residential capital values are expected to
remain stable in the short term, as any price hike
may negatively affect demand.
Mall rentals may appreciate in quality

developments in Lower Parel and Goregaon due to
increasing demand from F&B and apparel brands.
High level of enquiries for prime main streets of
Borivali LT Road and Lokhandwala - Andheri may also
The second quarter of 2015 is expected to witness
result in higher rentals at these locations. Enquiries
office supply of 1.5 msf in Bandra-Kurla Complex.
for quality space remains high especially from foreign
With improving macro-economic conditions and
apparel brands such as H&M, Gap and Massimo Dutti,
companies looking to execute growth strategies,
due to which transaction activity in main streets is
demand is likely to improve in the coming quarters.
likely to increase in the coming quarter.
Rentals are likely to improve in a few locations such
38
Pune
Market Overview
Nearly 3,300 units were launched in Pune in the
first quarter of 2015. Launch activity declined by

33% from the previous quarter, as many developers
launched only select blocks in their upcoming
projects. Mid segment contributed 70% to the total
unit launches, followed by the high-end (21%) and
affordable segment (9%). Capital values remained
stable from the previous quarter across all
segments.
Total office supply of 731,300 sf was added in the
first quarter of 2015. 76% of this supply was

contributed by Grade A developments in Off-CBD
East and Suburban East micro-markets. 68% of the
supply came in through completion of 500,000 sf
Mall inventory remained unchanged in 1Q 2015, as
phase in an SEZ. Despite substantial supply addition,
a mall was deferred due to approval delays. Mall
healthy transaction activity led to 0.5 percentage
vacancy dipped by 2.3 percentage points in a
points quarterly decline in All Grade vacancy, to be
quarter, to be noted at 20.7% due to stable
noted at 19.9% in 1Q 2015.
transaction activity and no new supply addition.
Trends & Updates

Due to high unsold inventory, capital values
better manage project cash-flows and concentrate
across locations maintained status quo. The quoted
on clearing existing stock. One luxury project in
values remained in the same range across segments
suburban Pune, handed over units in one tower.
as developers staggered launch activity in phases, to
39

2008
2009
2010
2011
2012
2013
2014
1Q 2015
Koregaon Park,
Boat Club
9.6 - 12.7
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
Aundh
4.9 - 6.1
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
Baner
NA
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
Kalyani Nagar
7.6 - 9.6
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
Wanowrie, NIBM,
Kondhwa
3.4 - 4.5
3.3 - 3.6
4.0 - 5.0
4.0 - 5.5
5.0 - 6.2
5.2 - 6.5
5.2 - 7.0
5.2 - 7.2
Location

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

2008
2009
2010
2011
2012
2013
2014
1Q 2015
Koregaon Park,
Boat Club
4.5 - 5.0
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
Aundh
3.5 - 4.0
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
Baner
3.0 - 3.8
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
Wakad
2.5 - 3.0
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
Kalyani Nagar
4.5 - 5.5
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
Wanowrie, NIBM,
Kondhwa
3.0 - 3.2
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
Location


Nearly 3,300 units were launched in 1Q 2015, a
units, having an average size of 1,000 sf had a 48%
33% decline from the previous quarter. Due to launch
share in the total units launched this quarter.
of only select towers/blocks in majority of the
Locations such as Hinjewadi, Wakad, Tathawade,
residential projects, average number of units
Bavdhan, Balewadi and Sus along NH4 Bypass (North)
launched per project declined from 289 units in 4Q
dominated the launch activity with a 24% share.
2014 to 183 in 1Q 2015. 2 Bedroom-Hall-Kitchen (BHK)
Project Name
Developer
Location
Number
of Units*
Type
Panchshil Towers
Panchshil Realty
Kharadi
478
Apartments
3 BHK: 2,860
4 BHK: 3,400 to 6,700
5 BHK: 8,000
Abhiruchi Parisar
Paranjape Schemes
Dhayari
362
Apartments
1 BHK: 481 to 490

1.5 BHK: 697 to 937
2 BHK: 685 to 826
2.5 BHK: 1,045 to 1,402
3 BHK: 854 to 2,067
3.5 BHK: 1,400 to 1,439
Colori
Amit Enterprises
Undri
288
Apartments
1 BHK: 528
1.5 BHK: 663
2 BHK: 774
Tinsel Town
Kohinoor Group
Hinjewadi
272
Apartments
2 BHK: 993 to 1,003

3 BHK: 1,351 to 1,367
Saarrthi Skybay
Saarrthi Group
Baner
250
Apartments
1 BHK: 664
2 BHK: 1,019 to 1,076
3 BHK: 1,400 to 1,500
40
Project Name
Developer
Location
Number
of Units*
Type
Richmond Park
Paranjape Schemes
Rahatani
231
Apartments
2 BHK: 635 to 1,367

3 BHK: 926 to 1,604
Ganga Acropolis
JV - Goel Ganga
Developments, Gagan
Developers, Kalyani
Constructions, Fortune
Properties
Baner
204
Apartments
2 BHK: 1,192
3 BHK: 1,562 to 1,591
Nyati Ethos
Nyati Group
Undri
192
Apartments
2 BHK: 1,000
3 BHK: 1,295 to 1,608
Azure
Paranjape Schemes
Tathawade
160
Apartments
2 BHK: 788 to 1,222

2.5 BHK : 1,757 to 1,968
3 BHK: 1,199 to 1,711
The Address
Adi Group
Wakad
144
Apartments
2 BHK: 996
2.5 BHK: 1,022 to 1,033
Kalpataru Serenity
Kalpataru
Manjri
138
Apartments
1 BHK: 650
2 BHK: 1,050
3 BHK: 1,426
Silverstone
JV- Panama Group

and Sunarch Developers
Handewadi
133
Apartments
1 BHK: 839
2 BHK: 1,028
2.5 BHK: 1,316
Gloria Grand
Paranjape Schemes
Bavdhan
100
Apartments
2 BHK: 829 to 882

3 BHK: 1,055 to 1,131
Montvert Avion
Montvert Homes
Sus
90
Apartments
2 BHK: 936 to 940

2.5 BHK: 1,060 to 1,119
3 BHK: 1,316 to 1,428
Lodha Riviera
Lodha
Gahunje
88
Apartments
2 BHK: 1,341
Sobha Elanza
Sobha
Developers
Kothrud
82
Apartments
3 BHK: 1,755 to 2,081

3 BHK (PH): 3,400
4 BHK: 2,574
Skylark Residences
JV- Vastupurti
Associates, Valay
Realty, Excell
Constructions,
Crystal Landmarks
Baner
44
Apartments
2 BHK: 991 to 1,113

3 BHK (PH): 2,503 to 2,704
Montvert Lumiere
Montvert Homes
Balewadi
38
Apartments
3 BHK: 1,494 to 1,515

4 BHK (PH): 3,050 to 3,183

In 1Q 2015, three reputed developers came up with
many developers are expected to follow the trend
individual property exhibitions. These exhibitions
and come up with individual property exhibitions.
offered attractive schemes and discounts for both
Existing high unsold inventory levels led to capital
on-the-spot as well as online bookings, and some
values remaining stable across segments and
projects were available for very low booking
locations. NH4 Bypass in the West and Kharadi,
amounts. Due to the attractive discounts and
Wagholi etc. in the East witnessed significant
promotional activities, these events were successful
construction activity during the quarter.
in generating significant footfalls. Going forward,
41

Pune recorded 838,200 sf of net absorption in the
ITeS sector. Nagar Road, Yerwada and Hinjewadi
first quarter of 2015. Though the net absorption levels
witnessed majority of the leasing activity during the
declined by 41% from the previous quarter, it
quarter. Overall weighted average rentals registered a
improved 35% from the same period last year. 76% of
marginal improvement from the previous quarter, due
total net absorption was in Grade A developments.
to an increase in quoted rentals of certain Grade A
Approximately 1.03 msf of leasing activity was
buildings and new supply addition at higher rentals.
recorded in 1Q 2015, with 57% contribution from IT-
Retail Sector
Malls continued to drive leasing activity in the
3.1% and 3.8% from the previous quarter, in MG
first quarter of 2015. Hadapsar and Koregaon Park
Road and FC Road respectively. However, during the
sub-market recorded rental correction of 3.8% and
same period, main streets of Aundh and Old Mumbai
5% during the quarter, due to exit of a few retailers
Pune Highway in PCMC recorded 2.6% and 4.5%
from select malls amidst declining enquiries. Due to
rental appreciation respectively as more retailers
limited options for mall spaces, rentals declined by
scouted for newer locations.
Outlook
Residential launches are expected to remain
stable in the upcoming quarter, as developers are
likely to open only select towers for bookings in new
residential projects, considering the existing high
unsold inventory. This is likely to lead to stability in
rental and capital values in the short term.
Nearly 3 msf of Grade A supply is expected to be
lead to an upward revision in overall weighted

average rentals.
Two malls nearing completion are expected to
witness some transaction activity in the next
quarter. Additionally, lack of quality availabilities on
main streets is expected to retain the preference for
malls amongst occupiers. Mall rentals are expected
added in the next quarter. High quantum of new
to remain stable in the coming quarter. However, new
supply may lead to marginal increase in vacancies
mall supply in the vicinity of main streets may exert a slight
despite healthy transaction activity. This supply
pressure on main street rentals in the coming months.
addition is likely to be at higher rentals which may
42
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Citigold Private Client

Improving Macro-economic Conditions; Positive Sentiments

GROSS DOMESTIC PRODUCT GROWTH RATE

(as per the new methodology) for the third quarter of

Growth Rate (%)

fiscal year (FY) 2014-15, slowed down marginally from

quarter. In this quarter, the construction sectors

manufacturing sector also declined by 1.4 percentage

Current Account Deficit (CAD) narrowed to 1.6%

the third quarter of FY2014-15. The agriculture,

of GDP in the third quarter of FY2014-15 from 2.0% in

forestry and fishing sectors growth dipped 2.4

the previous quarter, primarily due to an improvement

percentage points and stood at 0.4%. The mining &

in net earnings through travel and software services,

quarrying sector grew by 0.5 percentage points from

and lower net outflows. HSBC India Purchasing

the previous quarter and was noted at 2.9%.

Managers Index (PMI) stood at 53.5 in March 2015, a

With inflation under control, the Reserve Bank of

marginal decline from 54.5 in December. The

March 2015. The Cash Reserve Ratio (CRR) remained

Across the top eight cities1, total net absorption of

unchanged at 4.0% whilst the Statutory Liquidity

commercial office was around 7.9 million square feet

Ratio (SLR) was reduced by 0.5 percentage points to

(msf), a 13% decline from the previous quarter.

21.5% in March 2015. The Consumer Price Index (CPI)

Bengaluru (41%), Hyderabad (14%) and Mumbai (13%)

stood at 5.37% in February 2015, increasing

held the highest share in the net absorption. Pune

marginally from 4.28% in December 2014, but well

held 10.5% share of the total net absorption followed

below the RBIs target of 8%. The Wholesale Price

by Chennai and Delhi-NCR, which accounted for 8-9%

Index (WPI) witnessed a further decline from -0.5% in

share each. Overall supply across top eight cities was

December 2015 to -2.06% in February 2015.

recorded at 7.43 msf, a 40% decline from the previous

Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.

quarter. Due to healthy leasing, the overall vacancy

the total unit launches. Capital values remained

levels across these eight cities dropped by 0.5

largely stable in both high-end and mid segment units

percentage points from the previous quarter, and was

of five cities including Ahmedabad, Delhi-NCR, Mumbai,

noted at 18.3% in the first quarter of 2015.

Kolkata and Pune, primarily due to existing high unsold

In the retail sector, across the top eight cities, only

inventory. Bengaluru and Chennai witnessed a 5-7%

In the residential sector, approximately 24,600

Trends & Updates

EXCHANGE RATE MOVEMENT (INR/USD)

marginally from 5.19% in January to 5.37% in

the repo rate - twice (0.50 basis points in total) in the

to be under control. In order to revive the economic

0.5 percentage point from December 2014 to 22.5%

FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR

witness a decline for the last four months, and was

December 2015, due to a decline in the prices of food

registered a 2.79 percentage points increase from

Source: Dept. of Industrial Policy & Promotion, Govt, of India

December. Inflation for manufactured goods dropped

Indias GDP is projected to attain 7.4% growth at