MARKETBEAT

Residential Snapshot Q3 2016

BENGALURU, INDIA

RENTAL VALUES AS OF Q3 2016 Economy

High-End Segment GDP growth of India was recorded at 7.1% during the April-June
Submarket Average Quoted % Change From Short Term quarter of 2016, down from 7.9% in the preceding quarter. In August,
Rent (INR/Mth) 3 Mth 1 Yr Ago Outlook
Ago the Consumer Price Index (CPI), a key price indicator of the Reserve
Central 120,000-350,000 0% 0% Bank of India (RBI) for policy purposes, was seen at 5.05% - the
South 60,000-120,000 -14% -14% lowest in 5 months – on the back of lower food inflation. The stable
Off Central 60,000-150,000 -14% -18% inflation rate has increased hopes of an interest rate cut in October
East 70,000-300,000 0% -18%
when the new RBI Governor presents his monetary policy review. As
per the RBI data, outstanding credit of banks towards housing loans
North 60,000-150,000 0% -5%
increased 17% as of July 2016, compared to July 2015.The likely
North-West 50,000-100,000 0% 0%
implementation of the Real Estate Regulatory Authority Act by all
Mid Segment
states next year would bring transparency, thereby increasing
Central 70,000-100,000 0% -13% buyer’s confidence.
East 25,000-40,000 0% -4%
South-east 25,000-45,000 0% -5% Market Overview
North 20,000-35,000 0% -4%
New unit launches moderated, affordable segment witnessed a
25,000-40,000
two-fold increase. The third quarter of 2016 continued to witness a
South 0% 0%
decline in new unit launches. Approximately 4,800 units were
Off Central-I 40,000-70,000 0% 0%
launched during the quarter, registering a 9% quarter-on-quarter (Q-
Off Central-II 30,000-50,000 0% 0%
o-Q) decline from Q2. Prominent locations in the East, such as
North-west 25,000-35,000 0% 0%
Far South 20,000-30,000 0% 0%
Whitefield, Brookefield, Sarjapur Road and Hoodi, cumulatively
West 20,000-30,000 0% 25% accounted for 40% of the newly launched units. Further, the West
(Kengeri) submarket accounted for almost one-fourth of the total new
units launched in Q3, owing to the launch of a large project. While
CAPITAL VALUES AS OF Q3 2016
unit launches in the affordable segment witnessed a strong 83% rise
High-End Segment
Submarket Average Quoted Short Term
during the quarter, launches in the mid segment declined by 18%
% Change From
Rate (INR/Sf) 3 Mth 1 Yr Ago Outlook from Q2.
Ago
Central 18,000-30,000 0% 0%
Select submarkets witnessed correction in rental values, capital
7,000-10,500
values largely remained stable. Owing to high availability and
South 0% 0%
subdued demand for rental spaces in the submarkets of South and
Off Central 9,000-12,000 0% 11%
Off Central in the high-end segment, rental values moderated by
East 6,500-10,000 0% 0%
about 14% during the quarter on a sequential basis. However, rental
North 7,000-11,000 0% 0%
values remained at similar levels across all other submarkets.
North-West 8,000-11,000 0% 0%
The momentum of new unit launches have increased in the city with
Mid Segment 2016 recording an average of 5,300 units per quarter, compared to
Central 9,500-13,000 0% 0% 3,900 units in 2015. Thus, increased volume of supply during the
East 4,300-5,700 0% 0% year, coupled with relatively slower growth in demand resulted in
South-east 4,500-6,500 0% 2% stable average capital values during Q3.
North 4,500-6,000 0% 11%

South 4,500-6,500 0% 0% Outlook

Off Central-I 7,000-10,000 0% 0% New launch units are likely to witness growth. Owing to the
Off Central-II 6,500-8,500 0% 0%
upcoming festive season, new unit launches are expected to
North-west 6,000-6,750 0% 0%
increase in the fourth quarter.
Far South 3,750-4,500 0% 0%
West 4,000-5,000 0% 13%

Increase Stable Decrease www.cushmanwakefield.com

 MARKETBEAT

Residential Snapshot Q3 2016

BENGALURU, INDIA

STATS ON THE GO

Significant Projects Launched in Q3 2016

Building Location Developer Units Launched Rate* (INR/SF)
Rohan Akriti Subramanyapura Rohan Builders 248 4,300
UKN Belvedere Devanahalli Ukn 422 4,500

Significant Projects Under Construction in Q3 2016

Building Location Developer Est. Number Of Units Expected Completion
Sobha City - Casa Serenita Thanisandra Road Sobha Developers 503 Q4 2016
Westwood Magadi Road Prestige Group 582 Q4 2016

Significant Construction Completions in Q3 2016

Building Location Developer Est. Number of Units Unit Size (SF)

Brigade Meadows Kanakpura Road Brigade Group 1,780 700 – 1,180

NOTES
Data collated from primary and secondary resources. Estimations are subject to change
* Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc.
The above values for high-end segment are for units typically of 2,000-4,000 sf
The above values for mid segment are for units typically of 1,600-2,000 sf

KEY TO SUBMARKETS
High-end Segment
Central: Lavelle Road, Palace Cross Road, Off Cunningham Road, Ulsoor Road, Richmond Road, Sankeys Road
South: Koramangala, Bannerghatta Road, JP Nagar, Banashankari
Off Central: Frazer town, Benson Town, Richards Town, Dollars Colony
East: Whitefield, Old Airport Road
North: Hebbal, Jakkur, Devanahalli
North-west: Malleshwaram, Rajajinagar, Yeshwantpur

Mid Segment
Central: Brunton Road, Artillery Road, Ali Askar Road, Cunningham Road
East: Marathahalli, Whitefield, Old Airport Road, Old Madras Road, Budigere Cross
South-east: Sarjapur Road, Outer Ring Road (Marathahalli- Sarjapur), HSR Layout, Hosur Road
South: Jayanagar, J P Nagar, Kanakapura Road, Bannerghatta Road, BTM Layout, Banashankari
North: Hebbal, Bellary Road, Yelahanka, Doddaballapur Road, Hennur Road, Thanisandara Road
Off Central-I: Vasanth Nagar, Richmond Town, Indiranagar
Off Central-II: Cox Town, Frazer Town, Benson Town, etc.
North-west: Malleshwaram, Rajajinagar, Tumkur Road
Far South: Electronic City
West: Mysore Road, Uttarahalli Main Road, Magadi Road

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Copyright © 2016 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. www.cushmanwakefield.com