Property Insight q4

PROPERTY INSIGHTS
India
Quarter 1, 2016
INDIA ON RECOVERY PATH, REFORMS TO AID GROWTH

INDIA MARKET OVERVIEW
The Gross Domestic Product (GDP) of India during
GROSS DOMESTIC PRODUCT GROWTH RATE
the third quarter (October-December) of the fiscal
9.0%
year (FY) 2015-16 grew at 7.3%,with India reigning as
8.0%
7.0%
manufacturing sector witnessed growth at 12.6%,

despite the floods in Chennai during the OctoberDecember quarter. The spurt in manufacturing was, in
part, helped by lower input costs led by fall in
commodity prices. During the third quarter, the
growth in the construction sector was seen at 4.0%,
Growth Rate (%)
the fastest-growing large economy in the world. The
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2012-2013
2013-2014
2014-15
Q1 2015-16
Q2 2015-16
Q3 2015-16
Source: Central Statistical Organisation, Govt. of India* (as per the revised estimates)
up from a 1.2% growth in the previous quarter.

Steady private consumption was recorded during
the October-December quarter led by a pick-up in
urban demand, even while rural demand remains
tepid. Although the Indian economy is seen to be
buoyant at a time when the global economy is going
through a turmoil, challenges such as weak rural
demand, tepid corporate profitability and moderate
levels of investments in key sectors such as
Infrastructure could persist.
The Reserve Bank of India (RBI) has cut the repo
liquidity through lower minimum daily cash reserve

ratio (CRR) requirement, introduction of marginal
cost of lending, etc would likely result in better
transmission of rate cuts. The RBI had reduced the
repo rate by a cummulative 125 basis points in 2015,
in order to stimulate ecnomic growth. Supporting
the rate cut is Indias retail inflation that has been
stable over the last few quarters. The consumer
price index (CPI) - a key price indicator of the
Reserve Bank of India (RBI) for policy purpose
rate by 25 basis points to 6.5% in its monetary policy
eased to a 4-month low at 5.18% in February, from
review in April 2016, at a time when government
5.69% in January, helped by smaller increases in food
borrowing and spending has been in check and
prices. The retail inflation rate in February was primarily
inflation has eased. The repo rate cut would likely
driven by lower food inflation at 5.3% in February, as
provide a much-needed stimulus to private spending
against 6.85% in January. The wholesale Price Index
in the country and would boost the investment cycle.
(WPI)-based inflation rate contracted for the 16th
Furthermore, the RBI announced measures to augment
straight month in a row in February at 0.91%, on the
Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.
back of a dip in oil prices.
Modified Date: 12-May-2016
Current Account Deficit (CAD) narrowed to 1.3%

in the October-December quarter, from 1.5% in the
vacancy for top eight cities dropped to 17.12% during

the quarter from 17.36% in Q4 2015.
preceding quarter on the back of lower trade deficit.

CAD mirrors the difference between domestic
savings and domestic investment, and conveys the
extent of this gap that needs to be bridged by foreign
savings.The trade deficit in the October-December
quarter narrowed to USD 34 billion from USD 38.6
billion in the same period in 2014-15.
The total supply (all grades) in commercial office
1
sector across top eight cities decreased by 4% from
The retail sector witnessed total mall supply of 2.7

msf during the first quarter of 2016 as new malls
became operational in Delhi NCR (1.9 msf), Pune (0.5
msf) and Bengaluru (0.3 msf). The other cities did not
witness any new malls becoming operational this
quarter as a number of malls were delayed over the
last few quarters due to various reasons such as
construction delays and tepid response from
investors and retailers.
the previous quarter to about 11.11 million square feet

(msf) during Q1 2016. Bengaluru witnessed supply of
4.07 msf during the quarter, accounting for 37% of
total supply. This was the highest supply witnessed in
the city over the last 13 quarters. Delhi-NCR followed
next in terms of supply, with infusion of 2.5 msf of
space in Q1 2016, accounting for almost one-fourth of
total supply. Total net absorption (all grades) across
top eight cities was noted at approximately 7.09 msf in
Q1 2016, a 35% decline from Q4 2015. Following the
trend of the preceding quarter, Bengaluru accounted
for the highest share in net absorption at 46%, with
net absorption level of 3.27 msf. This marks a 46%
increase from the preceding quarter (Q4 2015).
Hyderabad continued to be an attractive market for
corporates, with net absorption of 1.2 msf in Q1 2016.
Delhi-NCR, while witnessing a 42% decline over Q4
2015 levels, was seen to have the third-highest net
absorption levels in Q1 2016 at 0.7 msf. Overall
The residential sector witnessed approximately

30,740 unit launches across top eight cities during the
first quarter of 2016 (January-March), representing
5% decline from the October-December quarter,
while registering a 25% increase from the year-ago
quarter. The quarter witnessed an equitable
distribution of launches across all cities. Bengaluru
accounted for the maximum of total launches (at
approximately 19%), decapitating Delhi-NCR from the
top slot. Mumbai followed close on the heels of
Bengaluru, accounting for 17% of the launches. DelhiNCR and Pune accounted for 15% each of total
launches. Bengaluru witnessed higher capital values
in three submarkets across high-end and mid
segment, as compared to the preceding quarter.
Chennai witnessed changes in capital value in some
submarkets, with a majority of them seeing an
increase in values.
Trends & Updates

Economic Trends
EXCHANGE RATE MOVEMENT (INR/USD)
February, from 5.69% in January. Lower food inflation at

5.3% in February, as against food inflation of 6.85% in
INR/USD
The consumer price index (CPI) eased to 5.18% in
January helped in the easing of CPI during the quarter.

With the Indian economy in recovery mode, RBI will
continue with its accommodative policy to boost
Source: RBI
growth within the space available under government's
FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR
inflation target, even as the RBI reduced repo rates by a
16000
13586
14000
cummulative 175 basis points between January 2015
Between April 2015 and March 2016, foreign
INR Crore
and April 2016.
12621
12000
10000
8749
8000
7248
6000
7508
5149
4264
3443
4000
2121
institutional investors (FIIs) sold net USD 2.74 bn in
2000
673
171
2014-15
2013-14
2012-13
Q1-Q3 2015-16
Source: Dept. of Industrial Policy & Promotion, Govt. of India
2011-12
2010 -11
2009-10
2008-09
2007-08
2006-07
equity. The outflows, along with a stronger dollar,
2005-06
have put pressure on the Indian currency, which was
BSE REALTY INDEX
the worst-performing currency in Asia in

Index
November.Since March 2015, the rupee has

depreciated 7.5% against the dollar.
Indias current account deficit (CAD) was seen at
USD7.1 bn or 1.3% of the GDP in the October-December
quarter on account of narrowing trade deficit. On a
cumulative basis, the CAD contracted to 1.4% of GDP
in the first nine months of the fiscal from 1.7% in the
Source: BSE
April-December period of 2014-15, on the back of a fall

in the trade deficit.
The total Foreign Direct Investment (FDI) inflows in
construction development sector in India between AprilDecember 2015 fell sharply to INR 673 crore (USD 105
mn), compared to INR 4,264 crore (USD 707 mn) in the
same period last year. The relaxation of FDI norms in the
Construction sector in November would likely propel
investments into the sector, going forward.
The BSE Realty Index registered a decline of 29%
to 1180 points as of March 2016, in a span of one year
from March 2015. When compared from March 2010,
the BSE Realty index has lost a whopping 64% of its
value as developers continue to be impacted by
sluggish demand in the residential sector, high land
costs and complex regulatory processes.
Since last year, the government has taken efforts in
in the Union Budget 2016-17, exempted Dividend

Distribution Tax (DDT) at the Special Purpose Vehicle
level of Real Estate Investment Trusts (REITs). REITs,
which are collective schemes that invest in a portfolio
of income-generating commercial real estate assets,
would enable developers to unlock value and create
liquidity.
Furthermore, in March, the Parliament enacted the
long-pending Real Estate (Regulation & Development)
Act, 2016 that would bring in transparency in the sector,
thereby encouraging foreign and domestic financial
institutions to invest in the real estate sector. The Bill
would bring in clear accountability of developers
through the establishment of the Real Estate
Regulatory Authority that would enable mandatory
disclosure of details of commercial and residential
projects.
bringing reforms in the real estate sector. The government,
Residential Trends
Capital values during the quarter remained
RESIDENTIAL CAPITAL VALUES GROWTH INDEX
stable across most cities in comparison to the

previous quarter owing to a slow pace of sales
velocity. Two locations in Bengaluru in the midsegment saw appreciation in capital values in 11-13%
range. Few locations in Chennai during Q1 2016 saw
appreciation in mid segment capital values in the
range of 4-18%, as compared to Q4 2015.
The residential sector witnessed approximately
Source: Cushman & Wakefield Research
30,740 unit launches across top eight cities during

the first quarter of 2016, representing a decline of
5% from the October-December quarter. Mid
segment accounted for roughly 53% of total
launches, followed by the affordable segment that
accounted for 34% of the total launches.
3
Mid-segment launches at approximately 16,450
NEW RESIDENTIAL UNIT LAUNCHES SHARE IN 1Q 2016
units registered an increase of 26% from the

previous quarter.
Bengaluru accounted for the
maximum of total launches among top 8 cities

during the quarter. Interestingly in Bengaluru,
affordable unit accounted for 55% of total launches
in the city. Mumbai followed close on the heels of
Bengaluru, accounting for 17% of the launches. In
Mumbai, the mid-segment rose 2.7 times over Q4
2015 and accounted for 77% of total launches in the
city. Delhi-NCR and Pune accounted for 15% each of
total launches.
Index
Ahmedabad...................................................................................
Bengaluru...................................................................................... 10
Chandigarh.................................................................................... 15
Chennai.......................................................................................... 18
Delhi - National Capital Region (NCR) .................................... 22
Hyderabad..................................................................................... 26
Jaipur ............................................................................................ 30
Kolkata.......................................................................................... 33
Mumbai........................................................................................... 38
Pune............................................................................................... 42
Ahmedabad
Market Overview
Ahmedabad witnessed nearly 1,800 unit launches
READY RESIDENTIAL PROPERTY VALUES IN MARCH 2016
during the first quarter of 2016, registering a quarterly

decline of 38% in the launch activity. The decline
was primarily due to low demand and significant
unsold inventory, which led to developers
postponing new unit launches. Developers
continued to focus on affordable segment, which
accounted for 43% of the total unit launches followed
by mid-end segment (36%), luxury segment (13%)
and high-end segment (8%). All of the luxury projects
were concentrated in the locations of Navrangpura
Represents Mid and High End segments
and S.G. Highway. Both capital and rental values

maintained status-quo during the quarter across
various segments in all sub-markets due to subdued
appreciated by 3% and 2% respectively compared
buyer sentiment.
to previous quarter buoyed by recent leasing activity
On the commercial front, Ahmedabad witnessed

780,000 square feet (sf) of incremental supply
in the said submarkets.

Ahmedabad witnessed no new mall supply in the
during the first quarter of 2016, all of it in Non-IT
first quarter of 2016. A mall admeasuring 160,000 sf
developments. Vacancy levels in the city increased
which was expected to become operational in the first
by 1.8 percentage points and was noted as 25.3% at
quarter of 2016, is deferred due to construction delays.
the end of March 2016, owing to significant supply
While the inventory levels remained stable, moderate
addition coupled with moderate absorption.
leasing activity resulted in vacancy levels remain range
Quarterly rentals in S.G. Highway and Prahlad Nagar
bound at 32.8% at the end of March 2016.
Trends & Updates

Ready Residential Property Update
Certain locations in submarkets like Satellite Road
previous quarter. Majority of the newly completed ready
and S.G. Highway witnessed minor appreciation in
projects were priced towards the upper range of the
capital values of ready residential projects by reputed
submarket capital values.
developers, however remained range bound as
Average Capital Values High-end Segment (INR '000/sf)

Location
2010
2011
2012
2013
2014
2015
Q1 2016
Satellite
4.0 - 4.8
4.3 - 6.0
4.3 - 6.0
4.3 - 6.0
4.3 - 6.0
4.3 - 6.5
4.3 - 6.5
Vastrapur
3.7 - 4.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.0
3.7 - 5.5
3.7 - 5.5
S.G.Highway
3.7 - 4.3
3.7 - 4.5
3.7 - 4.5
3.7 - 4.5
3.7 - 5.0
3.7 - 5.2
3.7 - 5.2
Prahlad Nagar
4.2 - 5.3
4.2 - 6.0
4.2 - 6.0
4.2 - 6.2
4.2 - 6.2
4.2 - 6.5
4.2 - 6.5
Q1 2016
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)

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

Note: The above values for mid-end segment typically include units of 1,200-1,800 sf
New Residential Launches

Almost 80% of the new unit launches during the
submarket of South-West, primarily along S.P. Ring
first quarter of 2016 were equally divided between 2
Road. Further, 25% of the unit launches came in
Be d ro o m - H a l l - K i tc h e n ( B H K ) a n d 3 B H K
North submarket, primarily in Chandkheda. Good
configurations, while the rest were 4 BHK. Almost
physical and social infrastructure continue to make
32% of the total unit launches were in peripheral
these as preferred locations for developers.
Location
Number of Units*
Type
Area of Units (sf)
Om Shanti Gold Plus Om Shanti

Estates
SP Ring Road
450
Apartments
2 BHK: 684
3 BHK: 1,134
Sharan Circle
Chandkheda
342
Apartments
2 BHK: 1,242
3 BHK: 1,710
4 BHK: 2,178
S.G. Highway
150
Apartments
3 BHK: 2,610
4 BHK: 3,036
Project Name
Developer
Rushabhdev
Infrastructure
The Sky Villa
Sahjanand
Group
Dwarkesh Opulence
Dwarkesh Group
SP Ring Road
136
Apartments
2 BHK: 1,345
3 BHK: 2,673
4 BHK: 4,000
Shrinand Flora
Shrinand Buildcon
Nana Chiloda
108
Apartments
2 BHK: 1,350
3 BHK: 1,998
Ganga Residency
Ganga Developers
Kalol
84
Apartments
2 BHK: 1,143 to 1,260
Radhe Homes
Krishna Realty
Lambha
78
Apartments
4 BHK: 1,548
Shreenand Elite
Shreenand Group
Naroda
70
Apartments
2 BHK: 1,296 to 1,350
Shreehari Greens
Sarthi Developers Chandkheda
56
Apartments
2 BHK: 1,332
Sadguru Sharan
Sadguru Group
53
Apartments
3 BHK: 1,944 to 2,151
Naroda
Project Name
Developer
Location
Number of Units*
Type
Area of Units (sf)
Omkar Lotus
Siddhivinayak
Developers
Chandkheda
48
Apartments
3 BHK: 1,800 to 2,025
South Park Tower
Sun Builders
S.G. Highway
46
Apartments
3 BHK: 1,330 to 2,130
Kraft Ananta
Kraft Construction
Ambawadi
42
Apartments
3 BHK: 1,850 to 3,050
Status
Arpan Developers S.G. Highway
28
Apartments
4 BHK: 3,537
Sanchhi Heights
Sanchi Infra
Kalol
28
Apartments
2 BHK: 963 to 1,134
Shakti Elegance
Shakti
Infrastructure
S.G. Highway
28
Apartments
2 BHK: 1,350
3 BHK: 1,818
Shivalay Gold
Khodiyar
Enterprises
Naroda
28
Apartments
2 BHK: 1,260
Astha Dreams
B N Projects
S.G. Highway
19
Villas
4 BHK: 1,800
Ambience Park
Arham
Developers
Navrangpura
18
Villas
3 BHK: 2,250
4 BHK: 3,375
5 BHK: 4,500
* Estimated and as per market information
Under Construction Residential Property Update

Most under-construction projects are concentrated
construction activity. Capital values in under-
in Bopal and Prahlad Nagar in the western submarket.
construction projects remained stable over the quarter
Also, locations in north Ahmedabad such as
to stay relevant in a competitive market.
Chandkheda, Motera, etc. also witnessed significant
Commercial Office Sector

All Grade quarterly net absorption declined by
sector (23%). Majority (87%) of the leasing activity
11% and was noted at approximately 195,900 sf, 87%
during the quarter was concentrated in suburban
of which was noted in Grade A developments. The
business districts of S.G. Highway and Prahlad Nagar
Grade A leasing activity was dominated by
owing to availability of quality space in these locations.
companies in IT-ITeS sector (48%), followed by

pharmaceuticals sector (27%) and manufacturing
Retail Sector
Transaction activity remained moderate in the
subdued demand and persistent high mall vacancy
main street at Prahlad Nagar with apparel brands
levels, there was no change in mall rental values as
expanding their footprint. Due to limited transactions,
well during the quarter across the city.
main street rentals maintained status quo. Due to
Outlook
The number of unit launches is likely to improve in
the next quarter, especially in affordable segment,
as developers are increasingly focusing at this
segment. Quoted capital and rental values are likely
to remain stable in the upcoming quarter across all
submarkets due to existing demand-supply
imbalance.
and Satellite/Prahlad Nagar may lead to a marginal

uptick in rentals.
No new mall supply is expected to be added in the
second quarter of 2016. The demand-supply
equilibrium is expected to maintain and keep the
rentals stable across most malls. With high levels of
enquiries from food & beverage (F&B) and lifestyle
Nearly 550,000 sf of new supply constituting of
brands for space in prime main streets like C.G. Road
Non-IT developments is expected to become
and Prahlad Nagar, rentals may appreciate in these
operational by the second quarter of 2016. In the
main streets whilst they are expected to remain
wake of new supply infusion coupled with moderate
stable for all other main street locations in the
leasing activity, vacancy levels may rise in the short
upcoming quarter.
term. Sustained occupier interest in Grade A

developments in suburban markets of S.G. Highway
Bengaluru
Market Overview
The new residential unit launches in the first
quarter of 2016 increased by 86% over the previous

quarter. Approximately 6,300 units were launched in the
quarter of which 50% were in the Southern
submarket and 29% in the Eastern.
The first quarter of 2016 recorded 3.3 million square
feet (msf) of total Grade A net absorption, a growth of
87% q-o-q. The Outer Ring Road remained as the most
active submarket accounting for 77% of the Grade A
net absorption in Q1. The new supply is recorded at 4.0
Brigade
Gateway
Prestige
Acropolis
Sobha
Petunia
Elita
Promenade
Brigade
Metropolis
Purva
Venezia
msf, increasing by 66% over the last quarter. With net

absorption increasing significantly over the previous
quarter, the Grade A vacancy rate declined by 0.60
percentage points to 7.65% in Q1 2016.
13.2% during the quarter. Majority of leasing activity

in the malls was driven by food & beverage (F&B) and
Bengaluru witnessed new mall supply aggregating
apparel brands. The rental values remained stable
270,000 square feet (sf) in the first quarter of 2016.
during the quarter except Kamahahalli Main Road,
Owing to lower pre-commitments in the new supply,
where the rental values increased by 3.4% on back
the overall mall vacancy rate increased marginally to
of high demand.
Trends & Updates

Improved demand from end users during Q1 2016
The quarter also witnessed completions of about
led to increase in capital values in mid segment in
7,100 units. The micro-market of Electronic City
select submarkets. The capital values within the mid-
accounted for 23% of these completions followed by
segment increased the highest in West Bengaluru
Hosur Road (14%) and Sarjapur Road (12%). About
submarket (13%) followed by North (11%) and South
86% of the completed units were apartments and
East (2%) submarket. The Off-CBD submarket in the
the remainder being Villas.
high-end segment also witnessed capital values rise

by 11% during the quarter. The rental values remained
stable across submarkets during the quarter with
stable demand.
10
Average Capital Values High-end Segment (INR000/sf)

Location
2008
2009
2010
2011
2012
2013
2014
2015
Q1 2016
Central
14.0 - 18.0
12.0 - 14.5
13.5 - 17.5
14.0 - 18.0
18.0 - 28.0
18.0 - 30.0
18.0 - 30.0
18.0 - 30.0
18.0 - 30.0
South
7.0 - 9.0
6.0 - 8.5
6.0 - 9.5
6.5 - 10.0
6.5 - 10.0
6.8 - 10.3
7.0 - 10.3
7.0 - 10.5
7.0 - 10.5
Off-Central
6.5 - 7.5
5.0 - 6.8
5.0 - 7.0
6.0 - 8.5
7.0 - 9.0
8.0 - 11.0
8.0 - 11.0
8.0 - 11.0
8.0 - 11.0
East
6.5 - 9.0
5.6 - 7.0
6.5 - 7.5
6.8 - 8.0
6.5 - 9.0
6.5 - 10.0
6.5 - 10.0
6.5 - 10.0
6.5 - 10.0
North
6.0 - 8.0
5.5 - 7.0
5.5 - 7.0
6.5 - 8.0
6.5 - 8.2
7.0 - 9.5
7.0 - 9.8
7.0 - 11.0
7.0 - 11.0

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

Location
2008
2009
2010
2011
2012
2013
2014
2015
Q1 2016
Central
5.8 - 7.0
5.0 - 6.0
5.5 - 7.0
6.0 - 7.5
6.0 - 8.0
9.0 - 12.0
9.0 - 12.0
9.5 - 13.0
9.5 - 13.0
East
2.7 - 3.1
2.4 - 2.7
2.7 - 3.1
3.2 - 3.8
3.8 - 4.8
4.0 - 5.5
4.0 - 5.5
4.3 - 5.7
4.3 - 5.7
South-East
2.9 - 4.0
2.5 - 3.2
2.8 - 4.0
3.4 - 5.0
4.0 - 5.5
4.5 - 5.9
4.5 - 6.0
4.5 - 6.3
4.5 - 6.5
North
5.0 - 6.5
2.8 - 4.0
2.8 - 4.4
3.0 - 4.8
6.0 - 9.0
6.0 - 9.0
6.0 - 9.0
7.0 - 10.0
7.0 - 10.0
South
3.0 - 4.0
4.6 - 5.7
4.8 - 6.0
5.0 - 6.5
3.5 - 5.5
3.5 - 5.5
4.0 - 5.5
4.0 - 6.5
4.5 - 6.0
South-West
2.8 - 4.2
2.7 - 3.9
3.2 - 4.5
3.6 - 5.0
4.0 - 5.5
4.5 - 6.5
4.5 - 6.5
4.5 - 6.5
4.5 - 6.5
Off-Central*
3.5 - 6.0
3.3 - 5.7
4.0 - 6.2
4.5 - 6.7
5.0 - 7.5
7.0 - 10.0
7.0 - 10.0
7.0 - 10.0
7.0 - 10.0
Off-Central**
4.0 - 6.0
3.7 - 5.7
3.8 - 6.2
4.3 - 6.7
5.0 - 7.0
6.0 - 8.0
6.5 - 8.5
6.5 - 8.5
6.5 - 8.5
North-West
4.2 - 5.8
3.5 - 5.2
3.8 - 5.6
4.3 - 6.2
4.5 - 6.5
5.5 - 6.5
6.0 - 6.8
6.0 - 6.8
6.0 - 6.8

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

Layout
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)

North: Hebbal, Yelahanka, Jakkur, Devanahalli
Mid segment
Central: Brunton Road, Artillery Road, Ali Askar Road,
Cunningham Road
Off-Central*: Vasanth Nagar, Richmond Town and

Indiranagar
Off-Central**: Cox Town, Frazer Town, HRBR, Benson
Town, etc.
North-West: Malleshwaram, Rajajinagar
East: Marathalli, Whitefield, Old Airport Road
11

In the first quarter of 2016, approximately 6,300
constituted approximately 41% with the remainder in
units were launched, an increase of over 86% from
luxury segment. Majority share of the total new
the previous quarter. The rise in new launch units can
launched units were in the Southern (50%) and
be attributed to launch of several large-scale projects
Eastern (29%) submarkets during the quarter. The
predominantly in South Bengaluru submarket. The
new launches in the Southern submarket were
affordable segment increased its share in new launch
concentrated in Electronic City and Off Sarjapur Road
units from 15% in Q4 2015 to about 58% in Q1 2016
while in East Bengaluru it was in the submarket of
followed by the mid-segment launches that
Whitefield and Yemalur during the quarter.
Project Name
Developer
Assetz Lifestyle
Assetz Realty
63 Degree East
Location
Number of Units*
Type
Area of Units (in sf)
Off Sarjapur
1,608
Apartments
1BHK: 685 to 691;

2BHK: 984;
3BHK: 1,157
Road
Prestige Kew
Gardens
Prestige Group
Yemalur
950
Apartments
1BHK: 615 to 634;

2BHK: 1,146 to 1,185;
2.5BHK: 1,291 to 1,360;
3BHK: 1,301 to 1,800
Ramky One Carnival
Ramky Group
Electronic City
800
Apartments
1BHK: 682;
2BHK: 892 to 1,192;
3BHK: 1,441 to 1,668
Godrej Avenues
Godrej Properties
Yelahanka
600
Apartments
1BHK: 629 to 710;

2BHK: 1,023 to 1,260;
2.5BHK: 1,392 to 1,398;
3BHK: 1,446 to 1,721
Ozone Promennade
Ozone & Elegant

Properties
Mahadevpura
550
Apartments
2BHK: 1,345 to 1,540;

3BHK: 1,765 to 2,400
Concorde Spring
Meadows
Concorde Group
Bagulguntte
400
Apartments
1BHK: 600;
2BHK: 820;
2.5BHK: 1,180;
3BHK: 1,400
Mahaveer Sitara
Mahaveer
JP Nagar
218
Apartments
2BHK: 1,400 to 1,434;

3BHK: 1,685 to 1,994;
4BHK: 2,318 to 2953
Developers
Brigade Buena Vista
Brigade Group
Budigere Cross
200
Apartments
1BHK: 650 to 680;

2BHK: 1,100 to 1,350;
3BHK: 1,446 to 1,650
Rising City
Provident Housing
Bomasandra
200
Apartments
2BHK: 550 to 835;

3BHK: 1,075 to 1,225
Vaishnavi Trinity
Vaishnavi Group
Hebbal
190
Apartments
2BHK: 1,178 to 1,190;

3BHK: 1,628 to 1,812
Hiranandani
Penrith
Hiranandani
Hulimavu
96
Apartments
1BHK: 595
Unishire Pratyaksh
Unishire
Developers
Seshadripuram
26
Apartments
3BHK: 1505 to 2767
12

Leveraging from the large upcoming supply of
continues to be the most preferred and accounts for
Grade A office spaces that can drive demand for
about 44% of the upcoming supply followed by
residential units, about 40% of the under
3BHK at 37%. The micro-market Whitefield has the
construction units are located in the submarkets of
highest volume of upcoming supply (11%) followed
South East and East (SE&E) cumulatively. About
by Sarjapur road (9%) and Kanakpura (7%).
93% of the upcoming supply in SE&E is attributed to

apartments. At the city level, the 2BHK configuration

Owing to 2.1 million square feet (msf) of precommitments that got absorbed, the first quarter of
2016 recorded 3.3msf of total Grade A net
absorption, a growth of 87% q-o-q. The Outer Ring
Road remained as the most active submarket
accounting for 77% of the Grade A net absorption in
Q1. The Grade A office supply continued to surge
upwards as the quarter witnessed 3.8 msf of new
completions, recording a 160% increase q-o-q.
About 65% of this new supply was located in Outer
Ring Road and the remaining in the Peripheral

North. The new supply was almost equally split
between IT-SEZ (52%) and Commercial (48%)
categories of building type.
Owing to low vacancy rates and high demand, the
overall Grade A weighted average rental values
increased by 4%. The submarket of Outer Ring Road
that accounts for almost half of the inventory was
the key driver of the rents during the quarter.
Retail Sector
Bengaluru witnessed new mall supply
aggregating 270,000 square feet (sf) in the first
quarter of 2016. Overall vacancy rate in the city was
recorded at 13.2%, a marginal increase from the
previous quarter. Majority of leasing activity in the
malls was driven by food & beverage (F&B) and
apparel brands during the quarter. The mall rental
values remained stable during the quarter. The
quarter saw the launch of the first showroom of
French beauty brand Sephora in Bengaluru in
Forum Mall.
during the quarter across most submarkets.

However, Kamahahalli Main Road witnessed rental
values increase by 3.4% during the quarter due to
strong demand and limited availability. Apparel
along with F&B segment, drove demand for main
street locations in the first quarter. Brands including
Flying Machine, Jockey, Gap, Dominos and Beer Caf
to name a few took retail space at main street
locations during the quarter. Swensens, a global icecream chain added stores at multiple locations
across the city.
With steady demand from retailers for main

street locations, rental values remained stable
13
Outlook
Considering that several projects are currently
being marketed by developers, new residential
launches are expected to remain stable in the next
quarter. Both, capital and rental values in the
residential sector, are also expected to remain stable
in the next quarter with stable demand.
The net absorption for Grade A office space is
expected to further increase during the next quarter
as 2.2 msf of pre-commitments are due for
absorption. The new supply is also expected to
increase as about 3-4msf of supply is likely to
become operational during the next quarter. Greater
demand and limited availability can create an

upward pressure on rents during the next quarter.
A mall aggregating to 500,000 sf of Gross
Leasable Area is expected to become operational in
the next quarter. Owing to lower pre-commitments,
this new supply is likely to increase the overall mall
vacancy rate in the city. The rental values for main
street locations are expected to remain stable with
steady demand from retailers during the next quarter.
14
Chandigarh
Market Overview
The new launches are declining in the Tri-city as
the first quarter of 2016 witnessed approximately

300 units, a decline of 78% over the previous
quarter. The new launches were located in Zirakpur.
Capital values in both high-end and mid segment
maintained status quo during the quarter with
transactions continuing primarily in the lower end of
the price range.
Demand for office space during the quarter was

primarily from companies belonging to Telecom and
IT-ITeS sector. There were no new completions
during the first quarter of 2016 and the Grade A
office rentals remained stable owing to the sufficient
availability and limited demand.
space by occupiers remained tepid in both malls and

main street locations during the quarter. Rentals
remained stable for both malls and main street
locations in the last few quarters.
No new mall development commenced

operations during the quarter of 2016. Demand for
Trends & Updates

Capital values remained stable across all locations
from the previous quarter with subdued transaction
Airport witnessed increased interest from buyers

during the quarter looking for value deals.
activity. The submarkets of Mohali and region near the
15
Average Capital Values High-end Segment (INR)

4Q 2014
1Q 2015
2Q 2015
3Q 2015
4Q 2015
Q1 2016
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 2014
1Q 2015
2Q 2015
3Q 2015
4Q 2015
Q1 2016
Zirakpur
2,800 - 3,600
2,800 - 3,600
2,800 - 3,600
2,800 - 3,600
2,800 - 3,600
2,800 - 3,600
Mohali
3,200 - 4,200
3,200 - 4,200
3,200 - 4,200
3,200 - 4,200
3,200 - 4,200
3,200 - 4,200
Dera Bassi
2,700 - 3,500
2,700 - 3,500
2,700 - 3,500
2,700 - 3,500
2,700 - 3,500
2,700 - 3,500
Panchkula
2,900 - 3,500
2,900 - 3,500
2,900 - 3,500
2,900 - 3,500
2,900 - 3,500
2,900 - 3,500

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

Panchkula: Sector - 20

The Tri-City region witnessed launch of
approximately 300 units in the first quarter of 2016.
new launches were primarily in the peripheral

southern region of Zirakpur during the quarter.
With basic prices in the range of INR 2,700-3,300/sf,
Project Name
Developer
Location
Number of Units*
Type
Area of Units (sf)
Joynest
Sushma Buildtech
Zirakpur
192
Apartments
3 BHK: 1,270 to 1,350
Mona Greens II
Mona Township
Zirakpur
105
Apartments
3 BHK: 1,350 to 1,810

4 BHK: 3,120
16

In 1Q 2016, capital values of under construction
quarter looking for value deals. Few projects in
projects remained stable across submarkets. The
Zirakpur begun offering possession in their projects
submarkets of Mohali and region near the Airport
during the quarter.
witnessed increased interest from buyers during the

In 1Q 2016, Telecom and IT-ITeS sector companies
Parks and IT-SEZs were around INR 50-60 per
had a major share in office space take-up in the Tri-
square feet per month (psf pm) and commercial
City region. Rentals maintained status quo during
spaces were at INR 70-95 psf pm.
the quarter across submarkets. Quoted rentals of IT
Retail Sector
The first quarter of 2016 witnessed no new
tepid in the Tri-City region during the quarter.
addition of mall space in the Tri-City region. Demand
Rentals across malls and main street locations
in mall as well as main street locations remained
remained stable during the first quarter of 2016.
Outlook
Capital values are expected to maintain status quo
considering huge unsold inventory and subdued
demand in the Tri-City region. Developers are
expected to focus on delivering on-going projects
rather than launch new projects to attract end-users.
No new office supply is nearing completion which
maintain status quo over the next quarter,

considering the prevailing high vacancies.
No new mall space is scheduled for completion in
the second quarter of 2016. Rental values in malls
and main street locations are expected to remain
stable across submarkets in the Tri-City region.
is expected in the next quarter. Demand is expected

to remain stable and rentals are expected to
17
Chennai
Market Overview
Chennai witnessed the launch of nearly 1,049
new residential units during the first quarter of 2016.
This was a decline of approximately 37% over the
previous quarter. Contribution of mid segment to the
total launches increased almost two-fold to 98% of
the total new launches during the quarter. The highend segment contributed the balance. There were no
new unit launches in the affordable segment, which
formed 47% of the total launches in the last quarter.
Micro-markets of Perumbakkam and Thoraipakkam
in the Rajiv Gandhi Salai region and Pallavaram
towards the GST witnessed heightened activity in
terms of new launches. Alandur, Anna Nagar, and
MRC Nagar were other micro-markets that
witnessed new launches during the quarter.
Rental values remained stable across most of the
submarkets except Besant Nagar, which witnessed a
marginal decline of 4% in the high-end segment. In
terms of capital values, Nungambakkam and Anna
Nagarwitnessed a marginal decline of 3 5% in the
high-end segment as developers aligned their
product pricing in response to weak market demand.
Further, the Off Central sub-market (R.A.Puram,
Abhiramapuram, Alwarpet and Adyar) witnessed an
increase of around 4% in the mid-segment.
Chennai witnessed no new office supply during
the first quarter of 2016. Projects due for completion
in the quarter were deferred further to the next
quarter.Leasing activity for Grade-A spaces declined
Appaswamy
Midtown
Lancor
Coral
Golden
Altius
Newry
Shreenidhi
True Value
Homes Eden
Ceebros
Boulevard
by 27% over the previous quarter. Grade A net

absorption too declined by 65% over the previous
quarter and stood at 544,600 square feet (sf).
Peripheral south constituted the majority (93%) of
the overall Grade A net absorption.This was due to
heightened activity in the submarkets of
Sholinganallur, Thoraipakkam, and towards the GST
which recorded a few large transactions in the ITITeS and automotive sectors.
No new mall supply became operational in Chennai
in the first quarter of 2016. Closure of certain outlets
due to low sales conversion led to a marginal
increase in vacancy, which stood at 8.4% at the end
of Q1 2016. Mall rentals largely remained at similar
levels during the quarter.
Trends & Updates

Approximately nine new projects (2,115 units)
became available for possession during the first
quarter of 2016. However, this was a decline of 44%
over the previous quarter. In an interesting trend, the
OMR and GST regions constituted 31% each of the
total unit completions during the quarter. Mid
segment constituted nearly 80% of the total unit
completions during the quarter.
Capital values were stable in most sub-markets

except Nungambakkam and Anna Nagar, which
witnessed a marginal decline of 3 5% in capital
values in the high-end segment. Off Central micromarkets witnessed an increase of around 4% in the
mid-segment.
18
Average Capital Values High-end Segment (INR 000/sf)

Location
2009
2010
2011
2012
2013
2014
2015
Q1 2016
Boat Club
18.0-20.0
18.0-23.0
20.0-25.0
23.0-27.0
23.0-33.0
23.0-35.0
23.0-32.0
23.0-32.0
R.A Puram*
13.0-15.0
13.0-16.5
14.0-17.0
15.0-19.0
17.0-23.0
17.0-23.0
16.0-22.0
16.0-22.0
Besant Nagar
NA
NA
12.5-13.5
13.0-14.5
13.5-15.0
13.5-15.0
13.5-15.0
13.5-15.0
Kotturpuram
NA
NA
12.0-14.0
14.0-16.0
14.0-20.0
14.0-20.0
14.0-20.0
14.0-20.0
Adyar
5.5-9.5
8.0-12.0
11.5 - 13.5
13.0-14.5
14.0-17.5
14.0-17.5
14.0-17.0
14.0-17.0
Poes Garden**
14.5-18.0
14.5-20.0
17.5-24.5
18.5-25.0
20.5-28.0
20.5-33.0
23.0-32.0
23.0-32.0
Nungambakkam
13.0-16.0
13.0-16.5
13.0-17.0
17.0-20.0
14.0-25.0
14.0-25.0
14.0-25.0
14.0-24.0
Anna Nagar
6.0-9.0
7.5-10.5
8.0-11.5
12.0-14.0
12.0-17.0
12.0-17.0
12.0-17.0
12.0-15.5
Kilpauk
4.0-8.0
8.0-12.0
9.0-15.0
12.0-15.0
12.0-16.0
12.0-16.0
12.0-16.0
12.0-16.0

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

2009
2010
2011
2012
2013
2014
2015
Q1 2016
Adyar
4.5 - 6.5
6.0 - 8.5
8.0 - 11.0
9.0 - 13.0
10.0 - 14.0
10.0 - 14.0
12.0 - 15.0
12.0 - 15.5
Rajiv Gandhi
Salai (Perungudi)
2.5 - 2.8
3.5 - 4.5
4.0 - 5.5
5.0 - 6.3
5.0 - 6.3
5.0 - 6.3
5.0 - 7.0
5.0 - 7.0
Velachery
3.5 - 4.0
3.5 - 5.0
3.5 - 5.5
4.5 - 6.5
6.0 - 8.0
6.0 - 8.0
6.0 - 8.0
6.0 - 9.5
T. Nagar
4.0 - 6.5
7.5 - 10.5
8.5 - 11.5
8.5 - 14.0
10.0 - 16.0
10.0 - 17.0
10.0 - 17.0
12.0 - 17.0
Mylapore
NA
NA
8.0 - 12.5
10.0 - 15.0
12.0 - 17.0
12.0 - 17.0
12.0 - 15.0
12.0 - 17.0
Mogappair
NA
NA
5.0 - 5.5
5.0 - 6.5
5.0 - 7.5
5.0 - 7.5
6.0 - 7.5
6.0 - 7.5
Kilpauk
4.5 - 6.0
6.0 - 8.0
7.5 - 9.5
9.0 - 12.0
9.0 - 12.0
No
availability
12.0 - 15.0
12.0 - 15.0
Location

Note: The above values for mid segment typically include units of 1,000-2,000 sf
The time series have been adjusted to reflect the updated values

New launches declined by about 37% over the
The new launches across apartment formats
previous quarter and stood at 1049 units at the end
contributed nearly 88% of overall launches with 2
of this quarter.The IT corridor of Old Mahabalipuram
Bedroom Hall Kitchen (BHK) configurations forming
Road (OMR, Rajiv Gandhi Salai) and the Grand
nearly 42% of total units launched.
Southern Trunk Road (GST) together constituted

nearly 35% of the total unit launches.
19
Project Name
Developer
Location
Number of Units*
Type
Aristo
Casa Grande Pvt Ltd
Karapakkam
496
Apartments
2 BHK: 1143 to 1232

3 BHK: 1418
4 BHK: 2568
Ceebros One 74
Ceebros
MRC Nagar
227
Apartments
3 BHK: 2200 to 2400

4 BHK: 3225 to 3810
Pelican Heights
Agni Estates &

Foundations
Pallavaram
132
Apartments
2 BHK: 980 to 1071

3 BHK: 1171 to 1450
Akankssha
Malles Constructions
Perumbakkam
120
Apartments
4 BHK: 1800 to 2200
Pace Park Lane
Pace Builders
Anna Nagar West
72
Apartments
2 BHK: 968 to 1145

3 BHK: 1285 to 1428
Akshaya Homes
Tango Compact Homes
Akshaya Homes
Thoraipakkam
68
Apartments
2 BHK: 676 to 700
Rajkham Emerald
Rajkham Builders
Porur
54
Apartments
2 BHK: 937
2.5 BHK: 1240
3 BHK: 1450
RKC Suprabath Ph-1
Raj Kishore
Engineerining &
Construction
Vadapalani
48
Apartments
2 BHK: 1105 to 1300

3 BHK: 1420 to 1654
P dot G Crescent Park
P Dot G
Pallavaram
42
Apartments
2 BHK: 755
3 BHK: 1360
Voora Saraswathi
Voora Property
Developers
T.Nagar
14
Apartments
3 BHK: 1748 to 1958
Elita
Casa Grande Pvt Ltd
Injambakkam, ECR
10
Villas
4 BHK: 3385
Salims Redrose
Cee Promoters &

Builders
Vadapalani
Apartments
1 BHK: 472
2 BHK: 637 to 902
3 BHK: 1001

More than 4000 units are under construction
coming up in the micro-markets of Perumbakkam,
across various segments, which are scheduled for
Potheri, Siruseri, Avadi, Perungudi, Pallikaranai,
possession in the coming quarter. These units are
Guduvanchery, to name a few.

With no new projects being added to the citys
the submarkets in the city. This can be attributed to
inventory, Grade A vacancy declined by 1.3
an increase in quoted rents by developers owing to
percentage point to 8.8% at the end of this quarter.
limited availability of Grade A space in majority of
Weighted average rentals increased across most of
the submarkets.
20
Retail Sector
Main streets witnessed increased transaction
the quarter. Rentals remained stable in most of the
activity from retailers mainly in the jewellery segment
submarkets, except Adyar Main Road that witnessed a
followed by apparel. Main streets of Velachery 100
correction in rentals. Also, Cathedral Road recorded a
feet Road and Anna Nagar 2nd Avenue witnessed
second consecutive quarterly increase in rentals
higher demand primarily by domestic retailers during
owing to robust demand.
Outlook
New launch activity in the residential segment is
absorbed in the second quarter of 2016. Rents are
expected to be subdued in the next quarter owing to
likely to increase especially in select submarkets like
the upcoming state elections.Capital and rental
Suburban South owing to limited availability of
values are likely to remain stable in the second
Grade A Stock.
quarter of 2016.
About 1.85 million sf of retail space is expected to
About 1.46 million sf of office supply is expected
enter the citys retail market in H2 2016. All these
to be operational in the next quarter in the micro-
projects are concentrated in the peripheral south
markets of Taramani and Anna Salai. Leasing
region. Main street rentals are expected to remain
activity is likely to gain momentum with the
largely stable in the next quarter except a likely rental
anticipated supply infusion to meet the pent up
decline in Adyar in line with the slower market demand.
demand of the last few quarters. Pre-commitments
Mall rentals are likely to remain range-bound.
of approximately 312,100 sf are expected to be
21
Delhi - National Capital Region (NCR)

Market Overview
A total of 5 projects aggregating approximately
4,600 units were launched in the first quarter of

2016. This marks a decline of about 44% compared
to the previous quarter as fewer projects were
launched owing mainly to subdued transaction
activity. Capital values maintained status quo across
submarkets during the quarter amidst weak buyer
sentiment. Increasing availability in older
constructions led to rental values declining in mid
segment in the submarkets of South-east and Southcentral Delhi during the quarter.
In the first quarter of 2016, Grade A office supply
in Delhi-NCR was recorded at 2.5 million square feet
(msf), an increase of over 82% from the previous
quarter. At 709,200 sf, Grade A net absorption
declined by 37% compared with the previous
quarter owing to consolidations and relocations by
occupiers. No pre-commitments were noted during
the first quarter of 2016. The weighted average
rentals in South-east Delhi submarket increased by
Delhi-NCR witnessed new mall supply

aggregating 1.9 msf during the first quarter of 2016.
Overall mall vacancy levels were noted at 22.0%,
increased by 5.1 percentage points compared to the
previous quarter due to infusion of new supply.
Rental values in malls locations remained stable
from the previous quarter. However, select main
street locations in South Delhi witnessed decline in
rentals during the quarter.
over 58% from the last quarter due to availabilities

in prime properties quoting higher rentals.
Trends & Updates

Transaction activity continued to remain subdued
values maintaining status quo during the quarter.
across submarkets in Delhi-NCR leading to capital
22

2013
2014
1Q 2015
2Q 2015
3Q 2015
4Q 2015
Q1 2016
South-West
45.0 - 60.0
42.5 - 56.0
42.5 - 56.0
42.5 - 56.0
40.4 - 53.2
40.4 - 53.2
40.4 - 53.2
South-East
25.0 - 40.0
25.0 - 38.0
25.0 - 38.0
25.0 - 38.0
24.5 - 37.2
24.5 - 37.2
24.5 - 37.2
South Central
27.0 - 50.0
27.0 - 46.0
27.0 - 46.0
27.0 - 46.0
25.7 - 43.7
25.7 - 43.7
25.7 - 43.7
Central
60.0 - 90.0
60.0 - 90.0
60.0 - 90.0
60.0 - 90.0
60.0 - 90.0
60.0 - 90.0
60.0 - 90.0
Gurgaon
11.0 - 27.5
11.0 - 25.0
11.0 - 25.0
11.0 - 26.0
11.0 - 26.0
11.0 - 26.0
11.0 - 26.0
Noida
7.0 - 8.5
7.5 - 9.0
7.0 - 9.0
7.0 - 9.0
7.0 - 9.0
7.0 - 9.0
7.0 - 9.0
Location

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

2013
2014
1Q 2015
2Q 2015
3Q 2015
4Q 2015
Q1 2016
South-East
25.0 - 30.0
22.0 - 27.0
22.0 - 27.0
22.0 - 27.0
20.9 - 25.7
20.9 - 25.7
20.9 - 25.7
South Central
25.0 - 35.0
25.0 - 35.0
25.0 - 35.0
25.0 - 35.0
23.8 - 33.3
23.8 - 33.3
23.8 - 33.3
Gurgaon
7.5 - 11.5
8.0 - 10.0
8.0 - 10.0
8.0 - 10.0
8.0 - 10.0
8.0 - 10.0
8.0 - 10.0
Noida
5.0 - 6.0
5.0 - 6.5
5.0 - 6.5
5.0 - 6.5
5.0 - 6.5
5.0 - 6.5
5.0 - 6.5
Location

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

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

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

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

Geetanjali Enclave, Safdarjung Enclave, 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
Gurgaon-High end: Golf Course Road (Sectors 24-26,

26A, 27, 28, 42, 43, 53-56), Mehrauli-Gurgaon Road
(Sectors 24-26) Golf Course Extension Road (Sectors 5863, 63A, 65-67 and 67A), Sohna Road (Sectors 38, 4749), Central Gurgaon (Sectors 40, 41, 44-46, 50-52 and
57) and Dwarka Expressway (Sectors 99, 99A, 102, 102A,
103-110, 110A, 111-114)
Noida: Sectors 34-37, 39-41, 44, 50, 51, 92, 93, 96-98,
128 and 133
23

Approx. 4,600 units were launched in the first
Noida. Submarkets of Sohna witnessed launch in
quarter of 2016, a decline of 44% from the previous
affordable segment while New Gurgaon witnessed
quarter.
The first quarter witnessed launches in
launches in mid segment in Gurgaon. Launches in
affordable (41%) and mid segment (59%) only,
Noida were concentrated along the Noida-Greater
similar mix as previous quarter. Gurgaon accounted
Noida Expressway during the quarter with both the
for 60% of the total unit launches with the rest in
launches in mid segment.
Project Name
Developer
Location
Number of Units* Type
Officers Enclave
Supertech
Sector 2, Sohna
1,200
Apartment
2 BHK: 958
3 BHK: 1,345
Golf Address
Antriksh
Sector 150, Noida
915
Apartment
3 BHK: 1,380 to 2,134

4 BHK: 2,760 to 2,977
5 BHK: 3,716 to 6,000
6 BHK: 5,954
Gulshan Botnia
Gulshan Homz
Sector 144, Noida
900
Apartment
2 BHK: 1,025 to 1,160

3 BHK: 1,355 to 1,475
Spots Parc
Sare Homes
Sector 92, Gurgaon
850
Apartment
3 BHK: 1,295 to 1,660
Raheja Maheshwara
Raheja Developers
Sector 11 & 14, Sohna
655
Apartment
2 BHK: 1,199 to 1,539

3 BHK: 1,630 to 3,175

Nearly 4,100 units across various projects begun
the submarkets of New Gurgaon, Noida Expressway
offering possession across submarkets in Noida and
and Central Noida Extension are expected to offer
Gurgaon during the quarter. Approx. 8,000 units in
possession over the next few quarters.

Grade A office supply in Delhi-NCR was recorded at
The surge in new supply along with dip in net
2.5 million square feet (msf), an increase of over 82%
absorption during the quarter led to rise in overall
from the previous quarter. IT Parks accounted for
vacancy levels in Grade A developments. Overall
44% of this new supply followed by IT-SEZs
vacancy was recorded at 30.1%, a 1.1 percentage
contributing 39% and the rest in commercial
point increase from the previous quarter. Rental
developments. At 709,200 sf, Grade A net absorption
values most submarkets remained largely stable
declined by 37% compared with the previous quarter
during the quarter.
owing to consolidations and relocations by occupiers.

Grade A leasing activity is recorded at 1.1 msf with
highest share (27%) constituted by IT-ITeS sector,
followed by BFSI (15%) and Aviation (10%). No precommitments were noted during the quarter.
The weighted average rentals in South-east Delhi

submarket increased by over 58% from the last
quarter due to availabilities in prime properties
quoting higher rentals.
24
Retail Sector
Overall mall vacancy levels increased by 5.1
rental values in Dwarka strengthened by 5.9% owing
percentage points compared to the previous quarter
to strong demand from branded retailers and limited
due to infusion of new supply aggregating 1.9 msf.
availability of quality space. Demand for space in
During the first quarter of 2016, mall rentals
main street locations during the quarter continued
remained stable in most malls with steady demand in
to be mainly from apparel and F&B segment. Main
prominent malls. Brands from the food and beverage
street locations in North Delhi, namely Kamla Nagar,
(F&B) and apparel segment such as Burger King,
witnessed take-up primarily from the apparel sector
Pantaloons and Madame expanded footprint in malls
brands such as Arrow and Manyavar. Main street
during the quarter. South Extension and Greater
locations of Lajpat Nagar, Safdarjung Development
Kailash I witnessed rental values dipping by 6.7%
Area (SDA) and Ghitorni in South Delhi witnessed
and 13.6% respectively during the quarter due to
significant take-up of space during the quarter.
increased availabilities and tepid demand. However,
Outlook
The next quarter is expected to witness further
dip in new launches as fewer projects are being
marketed by developers owing to subdued demand.
Capital values are expected to remain stable across
submarkets in the absence of any demand triggers.
With significant increase in enquiries for rental
housing primarily from diplomats and Multi-National
Companies (MNCs), rental values are expected to
increase in the submarkets of Delhi and Gurgaon.
quarter. Rental values are expected to maintain status

quo across submarkets amidst stable demand.
Two malls, aggregating 1.5 million square feet, are
scheduled to commence operations from the next
quarter. Overall city vacancy levels are expected to
increase owing to the significant addition. With
stable demand, rentals across submarkets are
expected to maintain status quo during the next
quarter across malls and main street locations.
Approximately 2.0 msf of office space,

concentrated in Gurgaon and Noida, is scheduled for
completion during the next quarter. Demand is
expected to remain at similar levels during the next
25
Hyderabad
Market Overview
The residential sector in Hyderabad witnessed
launch of over 3,850 units during the first quarter of

2016. This was significantly higher by 123% from the
preceding quarter, primarily owing to launch of a large
scale project. Gachibowli submarket accounted for
nearly 72% of the new unit launches. Mid-segment
witnessed maximum unit launches with 72% share in
total unit launches, followed by high-end segment
with 26% share. Capital values in mid-segment saw
appreciation in 1-11% range from the previous quarter
due to healthy pick-up in demand.
Commercial office sector witnessed total Grade

A supply of about 602,000 sf during Q1 2016, a
decline of nearly 27% from the previous quarter.
Grade A net absorption during the quarter declined
by nearly 13.5% from a quarter ago to about
839,400 sf. Due to higher net absorption and
comparatively lower supply, the total Grade A
vacancy level declined to 8.1% during the quarter.
The IT-ITeS sector continued to have a significant
share in total Grade A leasing activity with nearly
78% share. Grade A weighted average rents
Retail sector in Hyderabad saw nearly 380,000 sf

of mall supply getting deferred to subsequent
quarters resulting in no new mall supply during the
first quarter of 2016. As a result, the overall mall
vacancy remained about 4% during the quarter. Due
to low availabilities in malls, transactions remained
muted during the quarter, which resulted in stable
mall rents on q-o-q basis.
appreciated by 2.5% on q-o-q basis due to healthy

demand and reduced vacancy level.
Trends & Updates

The first quarter saw nearly 2,450 units nearing
Narsingi location, followed by 34% in Kukatpally. Mid-
possession which is significantly lower from over
segment accounted for nearly 47% share in the total
6,000 units which were completed in the previous
construction completions during the quarter, followed
quarter. About 38% of the total units which got
by high-end segment which had over 40% share.
delivered during the quarter were concentrated in
26

2009
2010
2011
2012
2013
2014
2015
Q1 2016
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
8.0 - 10.5
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
8.0 - 10.5
Himayatnagar
3.3 - 4.0
3.7 - 4.0
3.7 - 4.2
3.6 - 4.2
4.0 - 5.5
4.0 - 5.5
4.0 - 5.5
4.5 - 5.5
West & East Marredpally
3.3 - 3.8
3.5 - 4.0
3.6 - 4.3
3.6 - 4.3
4.0 - 5.5
4.0 - 5.5
4.0 - 5.5
4.0 - 5.5
Begumpet, Somajiguda
3.9 - 4.5
4.1 - 4.5
4.3 - 4.8
4.3 - 4.7
4.5 - 5.5
4.5 - 5.5
4.5 - 5.5
4.5 - 5.5
Madhapur, Gachibowli
3.5 - 4.3
3.8 - 4.9
3.9 - 5.3
4.1 - 5.3
4.5 - 6.0
4.5 - 6.0
4.5 - 6.0
4.5 - 6.5
Kukatpally
3.3 - 4.0
3.5 - 4.5
3.8 - 5.1
3.8 - 5.1
4.0 - 6.0
4.0 - 6.0
4.0 - 6.0
4.0 - 6.0
Miyapur, Nizampet
2.6 - 3.3
2.7 - 3.4
2.8 - 3.5
2.9 - 3.5
2.9 - 3.5
2.9 - 3.5
NA
NA
Location

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

2009
2010
2011
2012
2013
2014
2015
Q1 2016
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 - 6.0
4.0 - 6.0
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
4.0 - 5.5
4.0 - 5.5
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
3.3 - 4.2
3.5 - 4.5
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 - 4.0
3.5 - 4.3
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 - 4.5
3.5 - 4.5
Madhapur, Gachibowli
2.5 - 3.1
2.6 - 3.4
2.8 - 3.5
3.0 - 3.8
3.5 - 4.2
3.6 - 4.5
3.8 - 4.6
3.8 - 5.0
Kukatpally
2.4 - 2.9
2.7 - 3.2
2.9 - 3.5
2.9 - 3.6
3.1 - 4.0
3.3 - 4.0
3.3 - 4.0
3.5 - 4.3
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 - 3.8
3.0 - 3.8
Location


Though total number of project launches didnt
launches during the quarter. This was followed by the
witness any major change over the previous quarter,
high-end segment with over 26% share. Healthy
the new unit launches continued to remain healthy
demand in mid segment lead to appreciation in capital
and gained further momentum during the first
values across most submarkets and varied between 1-
quarter of 2016, as nearly 3,850 units were launched.
11% on q-o-q basis, with West & East Marredpally
The new unit launches grew by more than two-folds
submarket recording highest appreciation during the
during the quarter, primarily owing to launch of a large
quarter. Gachibowli submarket accounted for nearly
scale project in the mid segment. Hence, mid segment
72% of the total unit launches during the quarter and
accounted for the major chunk with 74% in total unit
all of these units would cater to mid segment.
27
Project Name
Developer
Location
Number of Units*
Type
My Home Avatar
My Home
Constructions Ltd
Gachibowli
2,780
Apartments
2 BHK: 1,314;
3 BHK: 1,834
My Home Bhooja - Phase 1
My Home
Constructions Ltd
Tellapur
600
Apartments
3 BHK: 2,595 to 3,430;

4 BHK: 4,070
Lifestyle City Green Dale
Rajapushpha
Properties Pvt Ltd
Tellapur
300
Villas
3 BHK: 3,045 to 4,370;

4 BHK: 4,980 to 5,060
Ramky Tranquillas
Ramky Group
Kismathpur
102
Villas
4 BHK: 3,357 to 4,069
Riverstone Habitat
Riverstone Constructions
Begumpet
75
Apartments
3 BHK: 1,940 to 1,980

Nearly 8,200 units were in the final stages of
North-West is expected to account for more than half
construction at the end of Q1 2016, which are likely to
of the share in total units to be delivered in next
get complete in the next quarter. However, some of
quarter, followed by the Ameerpet location with
these may get delayed / deferred to the subsequent
nearly 23% share. Major projects expected to become
quarters. Mid segment would account for over half
ready for possession in next quarter include Aditya
(51%) of the total units anticipated to get complete in
Imperial Heights in Hafeezpet location in Others-
the next quarter, followed by the affordable segment
North-west submarket, followed by Janapriya
with nearly 28% share. The submarket of Others-
Metropolis in Ameerpet in Others-Central submarket.

Hyderabad witnessed total Grade A office supply
followed by Gachibowli submarket which accounted
declined by nearly 27% from the previous quarter to
for 30% share. IT-ITeS sector continued to be the key
about 602,000 sf in the first quarter of 2016. Total
demand driver of the office space demand as it
Grade A net absorption was noted at about 839,400
accounted for 78% share in total Grade A leasing
sf, a decline of nearly 14% from a quarter ago. Higher
activity during the quarter. Grade A weighted average
absorption than the supply during the quarter
rents at city level appreciated by over 2.4% on q-o-q
resulted in overall Grade A vacancy reduced to 8.1%.
basis, owing to reduced availabilities and healthy
Madhapur submarket continued to remain in focus as
demand. Madhapur submarket noted 5.1%
entire Grade A supply during the quarter was
appreciation in rents over the previous quarter due to
concentrated in this submarket. Also, it accounted for
continued preference by occupiers coupled with very
nearly 67% share of the total Grade A net absorption,
limited availabilities.
Retail Sector
The first quarter of 2016 didnt witness any
owing to closure of limited transactions as retailers
infusion of new mall supply as about 380,000 sf of
were unable to get the desired retail space in the
mall supply got deferred to subsequent quarters. Lack
malls. Andhra Pradesh has become the first state in
of mall supply coupled with limited transactions due to
India to release a formal retail policy to make doing
limited availabilities in existing malls has restricted
business easy and would allow extended operating
the overall mall vacancy to about 4% during the
hours to the retailers.
quarter. Rents remained stable during the quarter,

28
Outlook
New launches in residential sector are expected
Retail sector is likely to see nearly 380,000 sf of
to remain healthy in the next quarter. Mid segment is
new mall supply in the submarket of Kompally during
expected to continue to contribute majority share in
Q2 2016. This would provide more options to
new launches owing to healthy demand. Capital
retailers to open new stores in the city amidst low or
values are expected to maintain status quo over the
limited availabilities in other malls. However due to
next quarter, due to healthy launch activity and
lower pre-commitments in upcoming supply the
available inventory in existing projects.
vacancy rate is likely to increase marginally. The
Commercial office sector is anticipated to

witness over 3.2 msf of Grade A office supply in the
next quarter, primarily (88%) concentrated in
Suburban (Madhapur) submarket. Grade A net
absorption is likely to increase significantly in next
rentals for malls and main street locations are

expected to remain stable in the next quarter, owing
to high competition from e-retailers which would
limit the scope of rise in rents in brick and mortar
retail outlets in order maintain margins.
quarter as over 2.4 msf of Grade A pre-committed

space is anticipated to get absorbed. Rents in
Suburban (Madhapur) submarket may continue to
witness appreciation owing to healthy demand and
limited availabilities.
29
Jaipur
Market Overview
The first quarter of 2016 witnessed launch of
approximately 1,850 units in Jaipur, an increase of

over 124% compared to the previous quarter.
Continuing the trend from the previous quarter,
luxury segment had a healthy share in new launches
in Q1 2016. Ajmer Road in western Jaipur witnessed
the highest number of new unit launches followed by
Jawaharlal Nehru Marg (JLN Marg)/ Tonk Road
during the quarter. Capital values remained stable
across submarkets in the high-end as well as mid
segment during the quarter.

No new office completions were witnessed in the
primarily in the suburban main street locations of
first quarter of 2016. Transaction activity remained
Vaishali Nagar and Malviya Nagar in Jaipur. Retailers
stable during the quarter with demand primarily
from food and beverage (F&B) and consumer
from IT-ITeS and manufacturing sector companies.
electronics brands were the primary demand drivers
Rentals maintained status quo from the previous
during the quarter. Rentals across malls and main street
quarter, across all submarkets.
locations remained stable compared to the last quarter.
No new mall bacame operational during the first

quarter of 2016. Transaction activity was observed
Trends & Updates

Capital values remained stable across markets in
both high-end and mid segment in Jaipur during the
witnessed along Tonk Road and in the submarket of

Jagatpura during the quarter.
first quarter of 2016. Increased buyers interest was
30
Average
Average
Capital
Capital
Values
Values
High-end
High End
Segment
(INR 000/sf)
(INR)
1Q 2015
Location
2Q 2015
3Q 2015
4Q 2015
Q1 2016
C- Scheme
8,200-11,200/sf
8,500-12,000/sf
8,500-12,000/sf
8,600-12,000/sf
8,600-12,000/sf
Bapu Nagar
7,000-9,000/sf
7,000-9,000/sf
7,000-9,000/sf
7,000-9,200/sf
7,000-9,200/sf
Civil Lines
82,500-115,000/sqyd
85,000-120,000/sqyd
85,000-120,000/sqyd 85,000-120,000/sqyd
85,000-120,000/sqyd
Malviya Nagar 77,500-105,000/sqyd
77,500-105,000/sqyd
77,500-105,000/sqyd
78,000-105,000/sqyd
78,000-105,000/sqyd

Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villas
*sqyd: Square Yard
Average
AverageCapital
CapitalValues
ValuesMid
High
Segment
End (INR(INR)
000/sf)
Location
1Q 2015
2Q 2015
3Q 2015
4Q 2015
Q1 2016
Malviya Nagar 65,000-77,500/sqyd
65,000-77,500/sqyd
65,000-77,500/sqyd
65,000-78,000/sqyd
65,000-78,000/sqyd
Vaishali Nagar 3,000-3,600/sf
3,000-3,600/sf
3,000-3,600/sf
3,000-3,700/sf
3,000-3,700/sf
Mansarovar
2,800-3,850/sf
3,000-4,000/sf
3,000-4,000/sf
3,000-4,000/sf
3,000-4,000/sf
Jagatpura
2,900-3,500/sf
2,900-3,500/sf
2,950-3,550/sf
2,950-3,550/sf
2,950-3,550/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

New launches in the first quarter of 2016 were
submarket of Ajmer Road and the rest along JLN
witnessed in southern submarket and western
Marg. The Basic Sale Price (BSP) of new launches in
peripheries of the city comprising of luxury and mid
mid-segment in the submarket of Ajmer Road was INR
segment projects. Nearly 1,850 units were launched
2,420 2,800/sf. Luxury segment launches along JLN
during the quarter, of which 77% were in the
Marg was in the range of INR 7,500 8,500/sf.
Project Name
Developer
Location
Number of Units*
Type
Shiv Sarovar
Shiv Shakti Group
Ajmer Road
1,057
Apartments
1 BHK: 620
2 BHK: 1,070
Taruchaya Residency
Guman Group
Ajmer Road
360
Apartments
1 BHK: 700 to 800

2 BHK: 1,139 to 1,156
3 BHK: 1,623 to 1,762
Radiance
Manglam Group
JLN Marg
320
Apartments
3 BHK: 2,176 to 2,199

5 BHK: 3,518
Iconic Residency
Vilasa and Guman Group
JLN Marg
110
Apartments
3 BHK: 2,952 to 3,230

4 BHK: 3,474 to 5,347
31

Mansarovar Extension, Jagatpura, and Ajmer Road
possession during the first quarter of 2016. The next
are the submarkets which witnessed most of the
quarter is expected to witness completions primarily in
completions during the quarter.
the submarket of Sikar Road, Sirsi Road and Jagatpura
There were five
projects with over 1,000 units that began offering
comprising mostly of mid segment projects.

No new office supply was added during the first
Secondary Business District (SBD) at INR 35-
quarter of 2016. Rental values in the Central
50/sf/month. IT-ITeS companies and occupiers from
Business District (CBD) of MI Road and C-Scheme
manufacturing sector had majority share in office
remained stable at INR 65/sf/month and that for
space take-up during the quarter.
Retail Sector
Demand for mall spaces remained tepid during
demand drivers during the quarter. Rentals
the quarter. No new mall supply was added during
remained stable from the previous quarter across
the quarter. Retailers from food and beverage (F&B)
malls and main street locations
and consumer electronics brands were the primary
Outlook
New launches in the next quarter is expected to
expected to continue in the submarket of central
decline as few projects are being marketed by
Jaipur with rental values ikely to remain stable during
developers. Capital values in the residential sector are
the quarter.
likely to strengthen going ahead in select submarkets

as projects under the smart city initiative gets
launched in the city.
No new office space is expected to be added
during the next quarter. Demand for office space is
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 Malviya Nagar and Vaishali nagar are
expected to witness continued interest from retailers.
32
Kolkata
Market Overview
Residential sector witnessed moderation in new
unit launches with nearly 3,700 unit launches in the

first quarter of 2016, with a decline of 15% from the
previous quarter. Rajarhat in North-east submarket
remained the highest contributor with 40% share in
new unit launches, followed by South-peripheral
submarket with 19% share. High-end segment
attracted highest share of new unit launches at 37%,
closely followed by affordable segment with 36%
share. Capital values maintained status quo across
most segments and submarkets in comparison to
previous quarter.
Commercial office sector witnessed significant
decline of 65% in Grade A supply from previous
quarter to 486,700 sf, owing to deferment of projects
Retail sector witnessed deferment of nearly
to subsequent quarters. Salt Lake submarket
350,000 sf of mall supply which was anticipated in
continued to constitute majority (73%) share in total
Howrah submarket, owing to construction delays.
Grade A supply noted during the quarter. Similar to
Leasing activity was primarily concentrated in new
supply, Grade A net absorption declined by 48% from
mall which got operational in the previous quarter
the previous quarter to 136,400 sf. Major chunk (85%)
owing to limited quality space in the city. Overall mall
of the Grade A net absorption was concentrated in Salt
vacancy declined marginally to 3.79% over the
Lake submarket. Grade A vacancy levels increased by
previous quarter led by transaction activity. Main
0.7 percentage points from the previous quarter to
streets witnessed healthy leasing activity primarily in
43.2%, owing to infusion of new supply and low
main streets of Central and North Kolkata. Jewellery
absorption. Most submarkets witnessed rental decline
and telecom segments led the leasing activity in main
between 0.4- 0.9% on quarter-on-quarter basis, due
streets during the quarter. Rentals remained stable
to elevated vacancy levels and subdued demand.
across mall submarkets and main streets.
Trends & Updates

During Q1 2016, nearly 1,100 units were ready for
submarket. Projects which became ready for
possession, nearly 36% less than the previous
possession during the quarter noted nearly 1-2%
quarter. Major chunk of the units completed during
appreciation on quarter-on-quarter basis. Some of
the quarter continued to be in mid segment (39%),
the prominent projects completed during the
followed by 28% in the high-end segment. Over 38%
quarter include Swarnamani which caters to high-
of the unit completions were concentrated in Garia,
end segment in North submarket and Rajwada
Narendrapur and Pailan locations in South-
Springfield which would cater to mid segment in
peripheral submarket, followed by nearly one-third
South-peripheral submarket.
(30%) in Canal Circular Road and Kestopur in North

33
Average Capital Values High-End Segment (INR 000/sf)

Location
2010
2011
2012
2013
2014
2015
Q1 2016
South
5.3 - 6.8
6.3 - 8.5
7.0 - 12.0
7.5 - 13.0
7.5 - 13.0
7.5 - 13.0
7.5 - 13.0
South - Central
9.5 - 13.0
10.0 - 18.0
10.0 - 18.0
12.5 - 18.5
12.5 - 18.5
12.5 - 18.5
12.5 - 18.5
South - East
4.5 - 8.0
5.8 - 9.2
5.8 - 9.5
6.0 - 10.5
6.2 - 11.0
6.2 - 11.0
6.2 - 12.5
South - West
8.9 - 13.0
10.0 - 15.0
10.0 - 15.0
12.0 - 17.0
12.0 - 17.0
12.0 - 17.0
12.0 - 17.0
Central
8.0 - 12.5
9.0 - 15.0
10.0 - 17.0
12.0 - 19.5
12.0 - 19.5
12.0 - 19.5
12.0 - 19.5
East
4.0 - 5.5
4.5 - 6.0
4.5 - 6.8
5.0 - 7.7
5.0 - 7.7
5.0 - 7.7
5.0 - 7.7
North - East
3.2 - 4.5
3.5 - 5.0
3.8 - 5.7
4.2 - 6.5
4.3 - 6.5
4.3 - 6.5
4.3 - 6.5


2010
2011
2012
2013
2014
2015
Q1 2016
South
3.2 - 4.5
3.8 - 5.5
3.8 - 5.5
3.8 - 6.5
4.0 - 6.7
4.0 - 6.7
4.0 - 6.7
South - Central
4.5 - 6.0
5.5 - 8.0
5.5 - 8.0
5.8 - 8.8
5.9 - 8.9
5.9 - 9.2
5.9 - 9.2
South - East
2.5 - 3.2
2.8 - 4.5
2.8 - 4.5
2.9 - 5.0
3.0 - 5.2
3.0 - 5.5
3.0 - 5.5
North - East
2.2 - 2.7
2.4 - 3.0
2.4 - 3.5
2.7 - 4.0
2.9 - 4.1
2.9 - 4.2
2.9 - 4.2
North
2.2 - 4.7
2.8 - 5.2
2.8 - 5.2
3.0 - 5.8
3.1 - 6.0
3.1 - 6.2
3.1 - 6.2
Location

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

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

Gurusaday Road, Ballyguange Circular Road, Dover Lane.
South-East: EM Bypass - Science City, Christopher Road,
Pancha Sayar.
South-West: Alipore Park Road, Ashoka Road, Burdwan
Road, Belvedere Road.
Central: Park Street, Camac Street, Shakespeare Sarani,
Minto Park, Elgin Road, Lee Road, Loudon Street, Rowdon
Street.
North: Kankurgachi, Lake Town, VIP Road, Ultadanga,
Narkeldanga Main Road
East: Salt Lake
North-East: New Town, Rajarhat
South-central: Deshpriya Park, Hazra Road, Bhawanipur

South-east: Ajoy Nagar, Hiland Park, PA Shah
Connector
North-east: Rajarhat, Rajarhat Chowmatha
South-west: Tollyguange Circular Road, New Alipore,
Behala, Jones Lang Sarani
North: Jessore Road, Ultadanga, Shyambazar, Bagbazar,
Girish Park, Manicktala, Dum Dum
North peripheral: BT Road, Barasat, Madhyamgram,
Sodepur
South peripheral: Garia, Narendrapur, Sonarpur,
South-west peripheral**: Joka, Maheshtala, Budge
Budge, Thakurpukur
34

New residential launches moderated during the
during Q1 2016, followed by South-peripheral
first quarter of 2016 and were recorded at nearly
submarket with 19% share. In order to attract buyers,
3,700 units, a decline of 15% from the previous
developers are co-branding and offering
quarter. High-end segment outpaced other
differentiated products. For instance the quarter saw
segments for the first time in past several years as it
launch of a high-end project in South-east submarket,
accounted for nearly 37% of the total unit launches
which offers products and services in association with
during the quarter. This was closely followed by the
world renowned lifestyle brands such as Versace and
affordable segment with nearly 36% share.
IOSIS. Also, a large international theme based project
Rajarhat in North-east submarket continued to have
was launched in the affordable segment in South-
majority share (40%) in the total unit launches
peripheral submarket.
Project Name
Developer
Location
Number of Units*
Type
Nestwood Maple
(Phase 1)
Nestwood Estates
Rajarhat
550
Apartments
1 BHK: 398 to 409

2 BHK: 710 to 807
3 BHK: 871
Dream World City
Jain Group
Pailan
416
Apartments
1 BHK: 555 to 560

2 BHK: 620 to 785
3 BHK: 845 to 990
Freshia
Loharuka Group
Rajarhat
360
Apartments
2 BHK: 885 to 899

3 BHK: 1,160 to 1,301
Riverfront
Hiland Group
Maheshtala
320
Apartments
2 BHK: 1,224 to 1,357

3 BHK: 1,370 to 1,508
Vyom
PS Group
New Alipore
270
Apartments
3 BHK: 1,962 to 2,669

4 BHK: 2,702 to 3,414
Ecos
Amit Realty / Shree

RSH Group
Rajarhat
212
Apartments
2 BHK: 1,070
3 BHK: 1,377 to 1,637
4 BHK: 2,013 to 2,039
Convicity
Bloomsbury
Infrastructure Pvt. Ltd.
Rajarhat
208
Apartments
1 BHK: 537
2 BHK: 720 to 893
3 BHK: 1,087 to 1,112
NVR Pride
Jalan Builders
Amtala, DH Road
171
Apartments
2 BHK: 814 to 880

3 BHK: 1,122 to 1,208
5th Avenue (Phase 1)
Merlin Group
Maheshbathan,
Salt Lake
156
Apartments
3 BHK: 1,062 to 1,790

4 BHK: 1,893 to 2,379
Star Om Millenia
Star Om Realty
Belgharia
152
Apartments
2 BHK: 853 to 1,047

3 BHK: 1,140 to 1,227
Eternis
Srijan Realty /
PS Group
Madhyamgram
132
Apartments
2 BHK: 823
3 BHK: 1,049 to 1,105
4 BHK: 1,637
Lakewood Estate
(Phase 1)
Unimark Group
Patuli
126
Apartments
3 BHK: 1,230 to 1,406
Urban Mango
Four Ace Infra Projects
Rajarhat
120
Apartments
2 BHK: 1075 to 1220

3 BHK: 1300 to 1615
4 BHK: 2300 to 2700
Iland
Merlin Group
Picnic Garden
117
Apartments
3 BHK: 1,077 to 1,507

4 BHK: 1,588 to 1,712
Shankh Mani
Mani Group and

MBPS Group
Tollygunge
111
Apartments
2 BHK: 1,277 to 1,367

3 BHK: 1,495 to 2,032
Sugam Habitat
Sugam Homes
Picnic Garden
86
Apartments
3 BHK: 1,421 to 1,641

4 BHK: 1,962 to 1,975
35
Project Name
Developer
Location
Number of Units*
Type
Arham
PS Group
Rajarhat
61
Apartments
2 BHK: 877 to 909

3 BHK: 1,107 to 1,697
Solitaire
Unimark Group /
Bagaria Group /
Anmol Group
EM Bypass
53
Apartments
3 BHK: 2205 to 2246

4 BHK: 2859 to 3286
Elysium
Tilakratan Realtors
Tangra
46
Apartments
3 BHK: 1,627 to 1,779

4 BHK: 1,980 to 2,453
Royale
Ideal Group
Maniktala
44
Apartments
3 BHK: 1910 to 2010

4 BHK: 2250 to 2350
Anukul
MCK Primarc
Maniktala
28
Apartments
3 BHK: 1,109 to 1,215

Over 4,750 units were in the final stages of
completions in the next quarter and are likely to have
construction and are anticipated to get complete in
over 70% share in total unit completions. Prominent
the coming quarter. This includes projects which got
projects that are nearing completion include
deferred from the previous quarters owing to
Mounthill Essence in North-east submarket and
construction delays. Rajarhat in North-east
Prudent Prana in South-peripheral submarket, both
submarket is expected to contribute nearly half
catering to the mid segment. Capital values of most of
(50%) in the total units to be delivered next quarter,
the under-construction projects remained stable
followed by Garia, Narendrapur in South-peripheral
across submarkets and segments. Additionally, the
submarkets with nearly 19% share. Mid segment
next quarter is also expected to witness a couple of
(40%) followed by the high-end (33%) segments are
prominent luxury projects which includes services
expected to continue witness maximum construction
apartments across various submarkets.

The first quarter of 2016 witnessed Grade A supply
the previous quarter to 136,400 sf, owing to low
declining significantly from previous quarter by 65%
demand and lack of pre-commitments. Salt Lake
to 486,700 sf. This was primarily owing to deferment
submarket accounted for the majority share (85%) of
of large IT projects to subsequent quarters and one IT-
the total Grade A net absorption. Grade A vacancy
SEZ project put on hold amidst widening gap between
levels increased by 0.7 percentage points from the
demand and supply. Salt Lake submarket continued to
previous quarter to 43.2%, owing to infusion of new
contribute majority (73%) to the total Grade A supply
supply and low absorption. Grade A weighted rentals
noted during the quarter. The major chunk (82%) of
across most submarkets declined between 0.4-0.9%
supply noted during the quarter was that of IT
from the previous quarter, amidst elevated vacancy
development, while the rest was for commercial office
levels and low absorption.
space. Grade A net absorption declined by 48% from
36
Retail Sector
The quarter witnessed no new supply as nearly
already high rents. Leasing activity in mainstreets
350,000 sf of mall supply anticipated in Howrah got
was primarily concentrated in Central and North
deferred to subsequent quarters, owing to delay in
Kolkata. Jewellery and telecom segments led the
construction. The leasing activity was noted from
leasing activity in main streets during the quarter.
apparel and accessories segments and was
Rentals across main streets remained stable during
concentrated in new mall which got operational in
the quarter. The quarter also witnessed few retailers
previous quarter. Mall vacancy declined marginally
from accessories and jewellery segments closing
from the previous quarter and is noted at 3.79% at
down their retail outlets from main streets of Camac
the end of quarter. Mall rentals across submarkets
Street and Park Street as part of the company
remained unchanged in comparison to the
strategy to consolidate operations.
preceding quarter, amidst low leasing activity and
Outlook
Residential sector is expected to witness healthy
witness quarterly supply of this magnitude for the
activity in new project launches in the next quarter,
first time. This is expected to substantial increase
owing to couple of large projects in affordable and
vacancy levels in Rajarhat where the existing vacancy
mid-segment anticipated to be launched. Additionally,
is the lowest (28%) in Kolkata. Rental values are
subsequent phases of existing projects would also add
expected to continue to remain under pressure
to the new launches. North-east and South-peripheral
owing to elevated vacancy levels and widening gap
submarkets are expected to continue to contribute
in demand and supply.
significantly to new launches. Capital values across

submarkets and segments are likely to remain stable
on quarter-on-quarter basis, owing to continued
healthy launch activity since past couple of quarters.
Commercial office sector is anticipated to witness
During the next quarter, mall supply of about

350,000 sf is anticipated in West submarket, which
continued to get deferred in the previous quarters. This
may increase overall vacancy levels in malls marginally.
Healthy leasing activity is expected in main streets,
huge influx of Grade A supply of about 1.3 msf during
owing to new supply in standalone buildings and an
the next quarter. The entire supply expected in next
expected churn. Rentals are expected to remain stable
quarter is concentrated in Rajarhat submarket and
across most malls and main streets.
this is completely an IT development. Rajarhat would
37
Mumbai
Market Overview
Residential unit launches witnessed a moderate
9% growth during the quarter on a sequential basis

(q-o-q). It is pertinent to note that select large
project launches in the eastern suburban submarket
supported this growth. Eastern suburban submarket
constituted majority of the unit launches (36%)
followed by Navi Mumbai (22%) and Thane (20%)
submarkets. Mid segment contributed to more than
80% of the unit launches across all these markets.
Planet
Godrej
Ashok
Towers
Sumer
Trinity
Orchard
Residency
Rustomjee
Athena
Godrej
Riverside
Capital and rental values continued to remain status

quo across all submarkets during this quarter as
compared to the previous quarter.

The first quarter of 2016 was marked with healthy
leasing activity recording 1.2 million square feet
The quarter witnessed a healthy recovery in the
(msf) with increased momentum witnessed in the
leasing activity across both malls and main streets
submarkets of Lower Parel, Thane and Malad /
with leasing transactions mainly concentrated in the
Goregaon. Grade A net absorption witnessed a 66%
apparel and food & beverage (F&B) segments. The
quarter-on-quarter (q-o-q) decline on the back of
apparel segment witnessed increased momentum
increased relocations in select submarkets.
Pre-
with a number of international players such as GAP,
commitments witnessed a healthy flow of nearly
The Childrens Place, to name a few, established
478,000 sf in the Grade A office space and augurs
presence at select malls in Lower Parel and Malad-
well for leasing in the coming quarters. With respect
Goregaon. A combined impact of healthy leasing and
to fresh supply, about 885,100 sf was added in the
retailer exits from malls in Mulund resulted in a
Grade A office space across the submarkets of
marginal dip in the overall vacancy levels to 17.3% in
Andheri-Kurla, Thane and Malad/ Goregaon. Rentals
the first quarter of 2016. Steady demand and
across most submarkets remained at similar levels
inadequate supply supported mall rental
except in select markets which witnessed a 57%
appreciation of 2-3% at Goregaon, 8% in Kurla and
quarterly increase.
4-5% across Colaba Causeway main street.
Trends & Updates

Q1 2016 witnessed few large project completions
in a weak environment during the quarter. However,
across the submarkets of Thane, eastern suburbs
the average capital and rental values remained
and Navi Mumbai. At the same time, developers
stable across all the submarkets in the city.
continue to reel under the pressure of declining sales
38

2009
2010
2011
2012
2013
2014
2015
Q1 2016
South
42.5 - 58.0
43.0 - 60.0
45.0 - 65.0
48.0 - 70.0
48.0 - 75.0
48.0 - 75.0
48.0 - 75.0
48.0 - 75.0
South Central
42.0 - 66.0
45.0 - 70.0
45.0 - 75.0
46.0 - 78.0
46.0 - 83.0
46.0 - 83.0
46.0 - 83.0
46.0 - 83.0
Central
34.0 - 55.0
35.0 - 55.0
32.0 - 54.0
34.0 - 58.0
27.0 - 65.0
27.0 - 65.0
27.0 - 65.0
27.0 - 65.0
North
22.0 - 30.0
24.0 - 32.0
24.0 - 32.0
28.0 - 40.0
28.0 - 48.0
28.0 - 50.0
28.0 - 50.0
28.0 - 50.0
Far North
10.0 - 16.5
11.0 - 16.5
11.0 - 16.5
12.5 - 18.0
12.5 - 18.0
12.5 - 20.0
12.5 - 20.0
12.5 - 20.0
North East
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 - 24.0
15.0 - 24.0
Location

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)

2009
2010
2011
2012
2013
2014
2015
Q1 2016
South
28.0 - 37.0
30.0 - 40.0
30.0 - 40.0
35.0 - 45.0
40.0 - 50.0
40.0 - 50.0
40.0 - 50.0
40.0 - 50.0
South Central
35.0 - 45.0
40.0 - 48.0
43.0 - 52.0
43.0 - 52.0
45.0 - 58.0
45.0 - 58.0
45.0 - 58.0
45.0 - 58.0
Central
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 - 45.0
23.0 - 45.0
North
16.0 - 24.0
16.0 - 25.0
16.0 - 25.0
18.0 - 27.0
20.0 - 30.0
20.0 - 30.0
20.0 - 30.0
20.0 - 30.0
Far North
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 - 16.0
10.0 - 16.0
North East
6.4 - 8.5
6.5 - 8.5
6.5 - 10.0
8.5 - 12.5
8.5 - 12.5
9.0 - 13.0
10.0 - 14.0
10.0 - 14.0
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
39

The first quarter of 2016 witnessed a 9% growth in
distantly followed by the high-end segment (20%) in
unit launches as compared to the previous quarter
select markets in western suburbs and south central
with nearly 5,400 units. The eastern suburban
Mumbai. 2 BHKs accounted for nearly one-half of the
submarket witnessed the maximum unit launches
total unit launches followed by 1 BHKs, forming about
(about 36% of the overall unit launches) buoyed by
one-third of the overall unit launches. Further, 2 BHKs
few large projects. Accordingly, the mid-segment saw
constituted almost 60% of the unit launches within
the highest unit launches (77%) across submarkets
the mid segment.
Project Name
Developer
Location
Number of Units*
Type
Dheeraj liv smart
Dheeraj Realty
Kurla
1,700
Apartments
1 BHK: 625 sf
2 BHK: 853 sf
The Pyramid
Garnet Constructions
Ambivali
626
Apartments
1 BHK: 750 sf
2 BHK: 1226 sf
Metro Grande
West pioneer
Kalyan
432
Apartments
2 BHK: 1170 sf
3 BHK: 1470 sf
Sky City II
Oberoi Realty
Borivali(E)
342
Apartments
3 BHK: 1158 sf
Juhi serenity
Juhi developer
Ghansoli
336
Apartments
2 BHK: 990 sf
3 BHK: 1330 sf
Kalpavriksha height
Sethia infra
Kandivali
330
Apartments
1 BHK: 645 sf
2 BHK: 1035 sf
2.5 BHK: 1210 sf
Juhi Luxuria
Juhi developer
Kharghar
312
Apartments
2 BHK: 1040 sf
3 BHK: 1645 sf
Fortune Maximus
Fortune Infra
Panvel
260
Apartments
1 BHK: 602 sf
2 BHK: 1105 sf
Sai Vrindavan
Today Global Group
Panvel
250
Apartments
1 BHK: 610 sf
2 BHK: 1040 sf
Lodha codename
hidden jewel
Lodha Group
Parel
212
Apartments
2 BHK: 1373 sf
3 BHK: 1945 sf
Kalpataru Primus
Kalpatru group
Santacruz(E)
160
Apartments
2 BHK: 1000 sf
3 BHK: 1400 sf
Mahindra Vivante
Mahindra Lifespaces
Andheri (E)
100
Apartments
1 BHK: 732 sf
2 BHK: 1227 sf
3 BHK: 2039 sf
Marathon Embrace
Marathon Realty
Bhandup (W)
88
Apartments
1 BHK: 600 sf
2 BHK: 775 sf
Kavya Ashwamegh
Kavya Buildcon Pvt Ltd
Ghatkopar E
64
Apartments
1 BHK: 400 sf
2 BHK: 623 sf
Kanakia Rainforest
(Amazona)
Kanakia
Andheri(E)
60
Apartments
3 BHK: 895 sf
4 BHK: 1209 sf
Amaltas 71
Tattva Mittal group
Chembur
52
Apartments
2 BHK: 1073 sf
3 BHK: 1350 sf
Subha heritage
Heritage Group
Powai
32
Apartments
1 BHK: 510 sf
2 BHK: 1170 sf
3 BHK: 1675 sf
Estimated and as per market information
40

Peripheral locations like Thane (including
Ghodbunder Road) and Navi Mumbai continued to
witness notable construction activity during the
quarter. Eastern and Western suburban locations
like Chembur, Wadala, Mulund, Ghatkopar, Andheri,

Goregaon, Malad, Kandivali, etc., continue to have
strong under-construction pipeline.

About 885,100 sf of office space was added
during Q1 2016 and all of it was contributed by Grade
A developments. Nearly 65% of this incremental
space was added in Andheri-Kurla submarket
followed by Thane (23%) and Malad/Goregaon
(12%). Grade A net absorption (constituting nearly
81% of the total net absorption) stood at 440,800 sf
and witnessed a 66% quarter-on-quarter (q-o-q)
decline on the back of increased relocations in the
submarkets of Andheri Kurla Road, Powai and

Central suburbs. Thus, a relatively slower net
absorption amidst fresh supply pushed the vacancy
levels marginally upwards and stood at 16.2% at the
end of quarter. Rentals across most submarkets
remained at similar levels except in Thane, BKC and
Powai submarkets which witnessed a 57% quarterly
increase owing to demand for quality space.
Retail Sector
The quarter witnessed a discernible recovery in
leasing activity led by apparel and F&B across malls
and main streets respectively. Lease rentals largely
remained range-bound across most of the malls and
main streets. However, mall rentals increased by
23% at Goregaon, 8% in Kurla and by 45% across
Colaba Causeway main street on the back of steady

demand for quality space. Overall mall vacancy
reduced marginally to 17.3% during Q1 2016 f driven
by healthy leasing activity and retailer exits from
malls in Mulund.
Outlook
In Q2 2016, residential capital and rental values are
SBD (mainly Bandra Kurla Complex), Thane, etc.
likely to remain at similar levels on the back of
Demand is expected to continue its healthy streak in
expected stability in demand. Further, the number of
the coming quarter as well; consequently vacancy
new launches is anticipated to decline with no major
levels are likely to decline from the current levels. At
projects currently at the pre-launch stage across key
the same time, lease rentals are expected to be
submarkets in the city. Developers are likely to
largely range-bound with marginal appreciation
continue to focus on offering apartments of smaller
expected in BKC and Andheri-Kurla submarkets.
configuration without substantially reducing prices

to push the overall ticket size downwards in the city.
Lease rentals across malls and main street are

expected to largely remain at similar levels in the
The second quarter of 2016 is expected witness
coming quarter of Q2 2016. The entry of international
incremental office supply to the tune of 11.6 msf and
apparel brands and opening up of new F&B outlets is
90% of this fresh supply will be Grade A
likely to continue which is expected to boost leasing
developments. Of the Grade A developments, Thane-
activity across malls and main street.
Belapur Road accounts for about 37% followed by
41
Pune
Market Overview
Pune witnessed new residential unit launches of
approximately 4,500 units in the first quarter of

2016, registering a decline of nearly 12% quarter-onquarter (q-o-q). Developers focused on affordable
segment which constituted 67% of the total units
launched in the current quarter, followed by mid-end
segment (32%). Accordingly, 1 Bedroom Hall Kitchen
(BHK) and 2 BHK together comprised 87% share in
total units launched this quarter. 59% of the total
units launched were concentrated in locations along
NH4 Bypass (North), Wagholi and Talegaon, owing to
growing housing demand in these existing industrial

hubs. Quoted rental and capital values remained
incremental supply quoting higher than existing
stable during the quarter across all submarkets.
market average rentals.
Pune witnessed incremental commercial supply
Approximately 487,000 sf of retail space spread
of 893,600 square feet (sf) in the first quarter of
across two malls became operational in the first
2016, majority (54%) constituting of IT-SEZ
quarter of 2016. Amidst rise in inventory levels
developments in Magarpatta Cybercity (Hadapsar).
combined with moderate leasing activity, overall
Almost 90% of this new supply is in Grade A
mall vacancy levels increased by 4.07 percentage
developments. Quarterly net absorption in the city
points, and was noted as 22.12% at the end of March
was recorded at approximately 574,100 sf,
2016. Rental values across most main streets
registering a sequential decline of 83%. Almost
remained stable except in Old Mumbai-Pune
89% of the total net absorption was noted in Grade
Highway, where it appreciated by 4.3% q-o-q due to
A developments. Grade A weighted average rentals
limited quality supply amidst increasing enquiries
appreciated by 18% q-o-q in SBD West mainly due to
from apparel retailers.
Trends & Updates

Due to high unsold inventory, capital values
range across segments as developers staggered
across locations maintained status quo during the
launch activity in phases, to better manage project
quarter. The quoted values remained in the same
cash-flows and clear existing unsold inventory.
42
Average Capital Values Mid Segment (INR '000/sf)

2010
2011
2012
2013
2014
2015
Q1 2016
Koregaon Park,
Boat Club
6.0 - 7.0
6.0 - 7.0
8.0 - 10.0
8.0 - 10.0
8.5 - 10.5
8.5 - 10.5
8.5 - 10.5
Aundh
4.0 - 5.0
4.5 - 5.5
6.0 - 7.0
6.5 - 8.0
7.5 - 8.5
7.5 - 8.5
7.5 - 8.5
Baner
3.5 5.5
4.0 5.5
5.0 6.0
5.7 6.8
6.0 7.5
6.0 7.5
6.0 7.5
Wakad
3.5 - 4.0
3.7 - 4.5
4.0 - 4.7
4.7 - 5.5
5.1 - 5.7
5.1 - 6.3
5.2 - 6.3
Kalyani Nagar
6.5 - 7.0
6.5 - 7.5
7.0 - 8.0
7.0 - 8.0
8.0 - 9.0
8.0 - 9.0
8.0 - 9.0
Wanowrie,
NIBM,Kondhwa
4.0 - 5.5
4.0 - 5.5
4.8 - 6.0
4.8 - 6.0
5.0 - 6.0
5.0 - 6.0
5.0 - 6.0
Location


Location
2010
2011
2012
2013
2014
2015
Q1 2016
Koregaon Park,
Boat Club
9.0 - 13.0
13.0 - 15.5
14.0 - 17.0
14.0 - 17.0
15.0 - 17.0
15.0 - 17.5
15.0 - 17.5
Aundh
5.0 - 5.5
5.0 - 6.0
8.0 - 10.0
9.0 - 11.0
9.0 - 12.5
9.0 - 12.5
9.0 - 12.5
Baner
5.0 - 6.5
6.5 - 7.5
8.0 - 10.0
8.0 - 10.0
8.5 - 11.5
8.5 - 12.5
8.5 - 12.5
Kalyani Nagar
8.0 - 12.0
8.0 - 12.5
12.0 - 14.0
12.0 - 15.0
12.0 - 15.0
12.0 - 15.0
12.0 - 15.0
Wanowrie, NIBM,
Kondhwa
4.0 - 5.0
4.0 - 5.5
5.0 - 6.2
5.2 - 6.5
5.2 - 7.2
5.2 - 7.4
5.2 - 7.4


Nearly 4,500 units were launched in Pune during
launched per project from 177 in the previous quarter to
the first quarter of 2016, registering a sequential decline
137 in the first quarter of 2016. With developers higher
of 12% in launch activity. Owing to existing higher levels
focus on affordable segment, which constituted 67% of
of unsold inventory, developers have begun phase-wise
the total units launched during the quarter, 1 BHK and 2
project launches to keep a check on mounting unsold
BHK together comprised 87% share in total units.
stock. This led to a drop in average number of units
Project Name
Developer
Location
Number of Units*
Type
Eco City II
Namrata Group
Talegaon
600
Apartments
1 BHK: 513
2 BHK: 804
Urban Nest
VTP Group
NIBM Road
600
Apartments
1.5 BHK: 697

2 BHK: 1,041
3 BHK: 1,385
Blossom
NG Rathi Associates
Wagholi
260
Apartments
1 BHK: 645
2 BHK: 975
Western Avenue
Phase I
Kolte Patil Developers
Wakad
250
Apartments
2 BHK: 1,131 to 1,150

3 BHK: 1,517 to 1,537
Utsav Residency
(Prudent)
Zenith Landmarks
Wagholi
234
Apartments
1 BHK: 490
2 BHK: 741
43
Project Name
Developer
Location
Number of Units*
Type
White Field
Balaji Alliance
Developers
Sus
192
Apartments
1 BHK: 676
2 BHK: 934
3 BHK: 1,192
Utsav Residency
(Lifestyle)
Zenith Landmarks
Wagholi
174
Apartments
1 BHK: 640
2 BHK: 960
Ganga New Town
Goel Ganga
Development
Dhanori
154
Apartments
1 BHK: 580
2 BHK: 860
3 BHK: 1,140
Fria Phase II
Marvel Realtors
Wagholi
154
Apartments
2 BHK: 1,255
Golden Treasure
Garve Developments
Punawale
144
Apartments
1 BHK: 645
2 BHK: 1,050
Sukool
Shree Siddhi Vinayak

Constructions
Talegaon
144
Apartments
1 BHK: 550
2 BHK: 865
Village Residency IV
Address Builders
Hinjewadi
140
Apartments
1 BHK: 608
2 BHK: 903
Sai Ganga II
Goel Ganga
Development
Undri
140
Apartments
1 BHK: 625
2 BHK: 1,245
Majestique Aqua
Majestique Properties
Phursungi
130
Apartments
1 BHK: 680
2 BHK: 1,007
Samarth Leela
Shree Balaji Group
Talegaon
126
Apartments
1 BHK; 525
2 BHK: 809
Nivaara
Essen Group
Chikhali
112
Apartments
1 BHK: 620
2 BHK: 917
Lotus
Ravi Kiran Group
Rahatani
110
Apartments
2 BHK: 900
3 BHK: 1,440
La Vida
Tatvam Constructions
Ravet
108
Apartments
2 BHK: 1,020
3 BHK: 1,400
Paramount City
Amarnath Builders
Lohegaon
88
Apartments
2 BHK: 918
3 BHK: 1,356
Chesterfield Homes
Fortune Group
Dhanori
87
Apartments
2 BHK: 915 to 970
The Regent Park
Kamdhenu
Construction
Charoli
82
Apartments
1 BHK: 639
2 BHK: 848
Onyx
Vastukalp
Wakad
80
Apartments
2 BHK: 1,013
Utsav Homes II
Primespace Realty
Bavdhan
65
Apartments
1 BHK: 615
2 BHK: 900
Sherlyn Avenue
Yash Developers
Pisoli
64
Apartments
2 BHK: 987 to 1,250
Nisarg Vatika
Nisarg Group
Moshi
63
Apartments
1 BHK: 585
2 BHK: 950
Impact Imperial
Impact Builders
Dhanori
48
Apartments
1 BHK: 615
2 BHK: 958
Avalon City II
Chordiya Group
Dapodi
45
Apartments
2 BHK: 1,050
Vastu Nirvana
Vastu Buildcorp
Baner-Pashan
25
Apartments
1 BHK: 700
2 BHK: 1,100
3 BHK: 1,500
25 Story
Vijayraj Associates
Chikhali
25
Apartments
1 BHK: 623
2 BHK: 940
Shriniwas Tranquil Tower Darode Jog
Dhayari
24
Apartments
3 BHK: 1,327 to 1,400
Urban Space III

(Kings Sceptre)
VTP Group
NIBM Road
20
Apartments
5 BHK: 4,388
BU Bhandari
Crescendo
BU Bhandari
Landmarks
Sopan Baug
14
Apartments
2 BHK: 1,500
3 BHK: 2,500
Bhakti Breeze
Meghaswana Landmarks
Talegaon
10
Apartments
1 BHK: 600
2 BHK: 854
Amar Westview
Inc Developers
Koregaon Park
Apartments
4 BHK: 6,800 to 7,223
Estimated and as per market information
44

The projects of large developers which are at
entailing prolonged completion timelines. Significant
advanced stages of completion are being increasingly
construction activity was noted in locations like Pisoli
preferred by buyers than the newly launched projects
and Kalyani Nagar.

Quarterly net absorption registered a sequential
commitments were noted during the quarter. A
decline of 83% and was noted at 574,100 sf. Consulting,
combined impact of moderate net absorption and
BFSI and IT-ITeS sectors together constituted 56% of
higher infusion of supply pushed the overall Grade A
the leasing activity, which was concentrated in the
vacancy levels northwards by 0.5 percentage points
suburban locations of SBD East (62%). No pre-
and stood at 11.1% at the end of March 2016.
Retail Sector
Majority of leasing activity was concentrated in
remained stable during the quarter. Also, rental
malls at Nagar Road and prime main streets at F.C.
values across most main streets remained stable
Road and was driven by Food & Beverage (F&B) and
except in Old Mumbai-Pune Highway in Pimpri-
apparel segments. While a couple of malls also
Chinchwad Municipal Corporation (PCMC), where
witnessed exit by a few retailers, mall rental values
they appreciated by 4.3% q-o-q.
Outlook
The number of unit launches is expected to
remain largely stable in the upcoming quarter as
several developers are likely to prolong pre-launch
phases or offer only limited units for bookings.
Quoted capital values across submarkets are likely
to remain stable in the short term until signs of sales
traction become visible.
such as SBD East and PBD West are expected to

witness softening of rentals in the upcoming quarter.
On account of anticipated infusion of mall supply
admeasuring nearly 350,000 sf in the second
quarter of 2016, overall mall vacancy levels are
expected to rise which is likely to put downward
pressure on rentals in Aundh. Lease rentals are
Amidst expected influx of approximately 695,300
expected to remain stable across most main streets
sf of Grade A supply in the upcoming quarter (none of
in Q2 2016 except in PCMC. PCMC is likely to witness
which is pre-committed), net absorption is expected to
softening of rentals as new supply in this expanding
be moderate. Hence, vacancy level in the city is likely
main street is expected to be quoted at lower than
to go up in short-term. As a result, select submarkets
current market average rentals.
45
This research report has been prepared by Cushman & Wakefield

specially for distribution to Citibank customers.
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representatives, officers, employees or affiliates makes no representations or warranties as to the accuracy or completeness of any
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has been obtained from sources that Cushman & Wakefield India believes in its reasonable bona fide faith to be reliable, but Cushman &
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PROPERTY INSIGHTS

INDIA ON RECOVERY PATH, REFORMS TO AID GROWTH

GROSS DOMESTIC PRODUCT GROWTH RATE

the third quarter (October-December) of the fiscal

year (FY) 2015-16 grew at 7.3%,with India reigning as

manufacturing sector witnessed growth at 12.6%,

Growth Rate (%)

the fastest-growing large economy in the world. The

up from a 1.2% growth in the previous quarter.

liquidity through lower minimum daily cash reserve

rate by 25 basis points to 6.5% in its monetary policy

eased to a 4-month low at 5.18% in February, from

review in April 2016, at a time when government

5.69% in January, helped by smaller increases in food

borrowing and spending has been in check and

prices. The retail inflation rate in February was primarily

inflation has eased. The repo rate cut would likely

driven by lower food inflation at 5.3% in February, as

provide a much-needed stimulus to private spending

against 6.85% in January. The wholesale Price Index

in the country and would boost the investment cycle.

(WPI)-based inflation rate contracted for the 16th

Furthermore, the RBI announced measures to augment

straight month in a row in February at 0.91%, on the

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

back of a dip in oil prices.

Modified Date: 12-May-2016

Current Account Deficit (CAD) narrowed to 1.3%

vacancy for top eight cities dropped to 17.12% during

preceding quarter on the back of lower trade deficit.

sector across top eight cities decreased by 4% from

The retail sector witnessed total mall supply of 2.7

the previous quarter to about 11.11 million square feet

The residential sector witnessed approximately

Trends & Updates

EXCHANGE RATE MOVEMENT (INR/USD)

February, from 5.69% in January. Lower food inflation at

The consumer price index (CPI) eased to 5.18% in

January helped in the easing of CPI during the quarter.

growth within the space available under government's

FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR

inflation target, even as the RBI reduced repo rates by a

cummulative 175 basis points between January 2015

Between April 2015 and March 2016, foreign

and April 2016.

institutional investors (FIIs) sold net USD 2.74 bn in

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

equity. The outflows, along with a stronger dollar,

Modified Date: 12-May-2016

have put pressure on the Indian currency, which was

BSE REALTY INDEX

the worst-performing currency in Asia in

November.Since March 2015, the rupee has

April-December period of 2014-15, on the back of a fall

in the Union Budget 2016-17, exempted Dividend

bringing reforms in the real estate sector. The government,

RESIDENTIAL CAPITAL VALUES GROWTH INDEX

stable across most cities in comparison to the

Source: Cushman & Wakefield Research

30,740 unit launches across top eight cities during

Modified Date: 12-May-2016

Mid-segment launches at approximately 16,450

NEW RESIDENTIAL UNIT LAUNCHES SHARE IN 1Q 2016

units registered an increase of 26% from the