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HIGHLIGHTS • Restricted sales transactions were observed in major cities like Mumbai, Delhi, Gurgaon and NOIDA during 1Q 2014. However, an increase in the number of enquiries for residential properties has been seen across the markets. • Chennai, Bengaluru and Pune markets remained active and witnessed ample new project launches. • Capital values remain stable in most cities. However select micro markets with inherent demand witnessed increases in the range of 2 - 5% Q-o-Q. • With the new Government in place and business confidence gaining momentum, we anticipate an increase in residential sales in the coming quarter.
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Residential Property Market OverviewMay 2014
research & forecast reportSYDNEY CENTRAL BUSINESS DISTRICT
2 Research & Forecast Report | May 2014 | Residential | Colliers Internationalwww.colliers.com
ecoNoMIc BaroMeter
Apr-13 Apr-14
repo rate 7.50% 8.00%
reverse repo rate 6.50% 7.00%
crr 4.00% 4.00%
Inflation 4.77% 5.20%
home loan rate 9.95% 10.15%
returN oN alterNatIve INvestMeNts
Apr-13 Apr-14 YoY % Change
Gold 27,135 29,773 9.72%
silver 45,483 41,892 -7.90%
fixed Deposit 8.75% 9.00% 2.86%
equity 19,504 22,418 14.94%
realty Index 1,901 1,397 -26.54%
repo rate cash reserve ratio Wholesale price Index
ecoNoMIc INDIcators
In p
erce
ntag
e
Macro Economic Overview
India’s economic growth decelerated to 4.7% in 4Q 2013, from 4.8% in the previous •quarter. On a positive note, the BCI rose to 54.9 during 4Q 2013, from 45.7 in the previous quarter showing an increase in business confidence levels. The International Monetary Fund (IMF) has projected 5.4% GDP for 2014, presenting a positive outlook for the Indian economy.
RBI has raised the repo rate from 7.75 to 8.00% this quarter, which may result in a further •increase in consumer loan interest rates.
Restricted sales transactions were seen in major cities during the quarter. New project •launches saw a sharp decline except in cities like Chennai, Bengaluru and Pune, which have seen ample new project launches. Developers have continued offering buyback schemes and possession-linked payment plans to provide much needed comfort to buyers. Capital values remain stable in most cities; however select micro markets with inherent demand witnessed increases in the range of 2 -5% QoQ.
COLLIERS VIEW: An increase in the number of enquiries for residential properties has •been seen across the major cities. However, transaction volumes have not improved much. With the new Government in place and business confidence is gaining momentum, we anticipate an increase in residential sales in the coming quarter. Capital values are expected to remain stable in the near term; however, there will be upward pressure in the medium to long term due to increased demand.
4.0
3.0
6.0
5.0
8.0
9.0
7.0
11.0
10.0
12.0
Mar
‘09
Jan
‘09
Nov‘
09
Mar
‘11
Mar
‘12
May
‘13
Jul‘1
3
sep‘
13
Mar
‘14
Jan‘
14
May
‘14
Nov‘
13
Mar
‘13
Jan‘
11
May
‘09
May
‘10
Mar
‘10
Jan‘
10
May
‘11
May
‘12
May
’08
Mar
’08
Jan
‘08
Jul‘0
9
Jul‘1
0
Jul‘1
1
Jul’1
2
Dec’
08
Nov’
08
sep’
08
Jul‘0
8
sep‘
09
Nov‘
10
sep‘
10
sep‘
11
sep‘
12
Jan‘
12
Jan‘
13
Nov‘
11
Nov‘
12
2.0
1.0
0.0
-1.0
-2.0
Source: Goverment of India, Colliers International India Research
Research & Forecast ReportIndia I Residential | May 2014
1 SBI Home loan rate for loan upto INR 30 Lakhs2 SBI Fixed deposit rate for a period of more than one year and amount below INR 1 Crore3 Realty Index is a free float weighted index, comprised of real estate development companies in the BSE-500 Index.
2
3
1
3
1Q 2014 2Q 2014F
capital value
rental value
New project
construction pace
MuMBaI
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
Godrej central chembur (e) Godrej properties ltd. 4Q 2018 14,000
runwal forest Kanjurmarg runwal Group 4Q 2018 9,900
Wadhwa anantya chembur (W) Wadhwa Group 4Q 2018 15,500
the only Majiwada, thane lodha Group 4Q 2018 8,470
White city Kandivali (e) rajesh lifespaces 4Q 2018 11,300
auris serenity Malad sheth creators 4Q 2017 13,500
•During the quarter, the Mumbai residential market remained subdued with lower transaction volumes in the secondary market. However, the primary market witnessed increased traction in select mid-range projects.
The primary residential market •witnessed increased project launches QoQ. Developers, such as Godrej Ltd, Runwal Group, Lodha Group, Wadhwa Group and Rajesh Lifespaces, have launched their residential projects in the central and western suburb micro-markets.
Limited new supply was added to the •market this quarter. A project that witnessed completion this quarter was Aurum by Lodha Group at Kanjurmarg, which is currently priced at INR12,500 per sq ft.
During 1Q 2014, capital values in the •central and western Suburbs rose in the range of 1 - 9% QoQ. However micro-markets, like Colaba, Cuffe Parade and Powai, witnessed a decline in the range of 3 - 5% QoQ.
The decreasing demand and cost •optimisation from corporations have prompted landlords to lower their rent expectations in order to secure tenants. The rents declined in the range of 1 - 7% QoQ in most of the micro-markets, except a few, such as Bandra, Khar, Juhu and Powai, where rents rose marginally in the range of 1 – 2%.
COLLIERS VIEW:• Going forward, absorption in the luxury segment will remain under pressure. The pre-launches in the mid-segment and low-end segments will continue to have traction at the introductory prices. Overall capital values in the primary and secondary sales markets are expected to remain stable in the short to medium term.
0
10,000
20,000
30,000
40,000
60,000
70,000
50,000
80,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
15f
1Q20
14f
1Q20
11
3Q20
11
80,000
40,000
50,000
70,000
60,000
10,000
20,000
30,000
0
Mumbai
prab
hade
vi
colaba, cuffe parade
sout
h M
umba
i
Malabar hill, altamount road, carmichael road
Worli
Wor
li
Breach candy, Napeansearoad, peddar road
prabhadevi
Band
ra
Bandra
sant
acru
z
santacruz
andh
eri
andheri
pow
ai
powai
Khar
Khar
Juhu
Juhu
200
150
100
50
0
Malabar hill, altamount road, carmichael road
colaba, cuffe paradeBandra
Juhu
Khar
prabhadevi
Breach candy, Napeansea road, peddar road
andheri
Worli
santacruz
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
thane - Kalyan 4,000 - 8,000
Navi Mumbai 3,500 - 7,500
virar - Boisar 3,000 - 5,500
INvestMeNt opportuNItIes
4 Research & Forecast Report | May 2014 | Residential | Colliers International
1Q 2014 2Q 2014F
capital value
rental value
New project
construction pace
DelhI
SELECT ONGOING PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
capital Greens phase v shivaji Marg Dlf ltd. 2Q 2015 18,000
castlewood okhla Indiabulls ltd. 2Q 2014 12,800
Kings court Greater Kailash- II Dlf ltd. 2Q 2015 40,000
Queens court Greater Kailash- II Dlf ltd. 1Q 2015 36,000
signature villas connaught place tata housing ltd. 4Q 2017 120,000 - 150,000
Winter hills Dwaraka Morh umang realtech 2Q 2014 10,250
In 1Q 2014, amid economic and political •volatility, the Delhi prime residential market remained distressed for the fourth consecutive quarter. Sales volume declined further as investors and end-users adopted a “wait-and-watch” strategy.
Similarly, the leasing market slowed •considerably due to limited hiring by multinational companies and embassies. With tenants getting more cost conscious, landlords were more open to rent negotiations. This quarter, rents for prime residential properties witnessed a decline in the range of 6% to 10% in almost all the micro markets.
Capital value remained stable as •landlords are also in a “wait-and-see” mode and seem to be in no hurry to make a deal.
The local authorities have proposed •to increase the circle rate in the city by another 20% to 30% to rationalise registration in view of ongoing market rates. The last circle rate revision happened in 2012 when the minimum rate for valuation of land and immovable properties was increased substantially. This increase in rate is likely to be applicable after May, 2014.
COLLIERS VIEW:• With no formal government in place, as well as ongoing elections and political uncertainties, the city’s overall sentiment will remain cautious. We anticipate an increase in sales volumes in the coming month post-elections, as investors as well as end-users that are away from the market will come back once the political uncertainty is cleared. Capital and rental values are expected to remain stable in the near term for premium properties.
0
15,000
30,000
45,000
60,000
90,000
105,000
75,000
120,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
15f
1Q20
14f
1Q20
11
3Q20
11
1,00,000
90,000
80,000
40,000
50,000
70,000
60,000
10,000
20,000
30,000
0
Delhi
200
160
120
80
40
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
anan
d Ni
keta
n,
vasa
nt v
ihar
panc
hash
ila, a
nand
-lo
k, Ni
ti Ba
gh, s
Da
frie
nds
colo
ny,
Mah
aran
i Ba
gh
shan
ti Ni
keta
n,
Wes
tend
Grea
ter
Kaila
sh I
&
II, s
outh
ext
ensi
on
Golf
link
s, J
or B
agh,
su
nder
Nag
ar
chan
akya
pur
i
prith
vira
j roa
d,
aura
ngze
b ro
ad
anand Niketan, vasant vihar
panchashila, anandlok, Niti Bagh, sDa
friends colony, Maharani Bagh
shanti Niketan, Westend
Greater Kailash I
& II, south extension
Golf links, Jor Bagh, sunder Nagar
chanakya puri
prithviraj road, aurangzeb road
prithviraj road, aurangzeb road
Golf links, Jor Bagh, sundar Nagarshanti Niketan, Westend
chanakya puri friends colony, Maharani BaghGreater Kailash I & II, south extension
panchashila, anandlok,Niti Bagh, sDa
anand Niketan, vasant vihar
5
1Q 2014 2Q 2014F
capital value
rental value
New project
construction pace
GurGaoN
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
Godrej oasis sector 88a Godrej properties 4Q 2017 6,500
platina sector 103 satya Group 4Q 2017 5,000
tata arabella sohna road tata housing 4Q 2017 12,500 - 14,000
ultima phase-II sector 81 Dlf ltd. 4Q 2017 8,700
vatika Boulevard sector 83 vatika Group 4Q 2017 6,800
vatika one express city sector 88a, 88B & 89a vatika Group 4Q 2018 7,250
0
5,000
10,000
15,000
20,000
30,000
35,000
40,000
25,000
45,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
18,000
8,000
10,000
16,000
14,000
12,000
2,000
4,000
6,000
0
Gurgaon
Nh -
8
sohna road & ext
Golf
cour
se r
oad
Dlf phase I
sohn
a ro
ad &
ext
Dlf
phas
e I
Nh - 8
Golf course road
sush
ant l
ok
sushant lok
80
60
40
20
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
Golf course road extension 7,500 - 9,000
sohna extension 4,000 - 5,000
pataudi road 4,500 - 5,500
New Gurgaon 4,000 - 5,000
INvestMeNt opportuNItIes
Gurgaon residential market witnessed •overall reduced demand in both primary and secondary markets during the surveyed quarter.
In the primary market, only a few •premium projects / parts of projects were launched, including: “Godrej Oasis” by Godrej Properties at Sector 88A; “Platina” by Satya Group at Sector 103; “Tata Arabella” by Tata Housing at Sohna Road; “Ultima Phase-II” by DLF Ltd at Sector 81; and “Vatika Boulevard” and “Vatika One Express City” by Vatika Group at Sector 83 and Sectors 88A, 88B and 89A, respectively. These projects were priced in the range between INR5,000 to INR14,000 per sq ft.
The developers have not reduced sales •prices in their newly launched projects; however, they were offering innovative payment plans such as partial payment on possession and buyback options to generate sales amid waning demand.
In the secondary market there was a •downward pressure on capital values, however asking prices were remained stable.
This quarter, Gurgaon district •administration has revised the circle rate with effect from April 1st 2014. The average hike in the circle rate is 15% across the city. This increase in the circle rate will lead to high registration cost of properties in the city. Circle rate is the minimum rate defined by the state government for property registration.
COLLIERS VIEW:• Looking forward, capital and rental values are expected to remain stable. Investor activity is expected to pick up post new Government formation; however, end-users will remain at bay due to high price points and relatively fewer options available for mid-segment housing.
Dlf phase I
Nh-8
Golf course road
sushant lok
sohna road & ext
1Q20
15f
6 Research & Forecast Report | May 2014 | Residential | Colliers International
1Q 2014 2Q 2014F
capital value
rental value
New project
construction pace
NoIDa
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
exotica sports city sector 79 exotica housing 4Q 2017 4,300
Wave Irenia sector 32 & 25a Wave Group 4Q 2017 8,200
lotus Greens Yamuna expressway lotus Greens 4Q 2018 2,700
lotus square residences sector 98 lotus Greens 4Q 2018 7,500
romano sector 118 supertech ltd. 4Q 2017 4,350
the urban Walk sector 121 techzona Group 4Q 2017 5,000
0
1,500
3,000
4,500
6,000
9,000
10,500
7,500
12,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
3Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
15f
1Q20
14f
1Q20
11
3Q20
11
12,000
6,000
7,500
10,500
9,000
1,500
3,000
4,500
0
NOIDA
sector 50
sector 44
sector 61,62,63
sector 28,29,30
sector 92/93
40
30
20
10
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
NoIDa expressway 4,000 - 7,000
sectors 71 to 83 4,500 - 5,500
INvestMeNt opportuNItIes
sect
or 2
8, 2
9, 3
0
sect
or 9
2/93
sect
or 6
1, 62
., 63
sect
or 5
0
sect
or 4
4
sector 61,62,63
sector 92 / 93
sector 28,29,30
sector 50sector 44
The NOIDA residential market witnessed •revived interest from end-users as well as investors. There has been an increase in inquiries for projects nearing completion in the secondary sales market. However, this has not resulted in an increase in transaction volumes.
In 1Q 2014, NOIDA witnessed launch of •few premium and mid-range projects.
No new major projects / phases of •projects were completed this quarter; however, there are several projects awaiting an occupation certificate that are expected to be delivered in the next two quarters in sectors along the NOIDA Expressway.
In 1Q 2014, capital values remained •stable across all micro-markets. Rents in institutional sectors, such as Sectors 61 – 63, witnessed downward pressure as tenants prefer new projects with amenities in nearby localities.
In order to boost real estate activity, •the local government body this quarter gave the nod to a mixed land-use policy that allows commercial activities in residential sectors. The authority allows commercial activities in residential areas having roads of 24 m wide or more. This will further stimulate other real estate activities like construction of hospitals, banks, schools, ATM kiosks, guest houses and other business premises.
COLLIERS VIEW:• After the new Government formation, the city residential demand scenario is likely to improve. Moreover, a number of new projects are expected to be completed in the coming quarters. This upcoming supply will keep capital values in check in the secondary market. In the primary market, developers will keep offering freebies and other promotional offers in order to clear their unsold inventories.
7
1Q 2014 2Q 2014F
capital value
rental value
New project
construction pace
cheNNaI
2,000
6,000
18,000
14,000
10,000
22,000
30,000
26,000
38,000
34,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
15f
1Q20
14f
1Q20
11
3Q20
11
25,000
9,000
13,000
21,000
17,000
1,000
5,000
Chennai
anna Nagar
Boat club
adyar
Nungambakkam
Beasant Nagar
t Nagar
sholinganallur
siruseri/ Kazipattur
alwarpet / r a puram
velachery
90
75
60
45
30
15
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
velachery 5,000 - 7,000
sholinganallur 3,500 - 4,200
siruseri/ Kazipattur 3,000 - 4,000
Kelambakkam 3,000 - 4,000
INvestMeNt opportuNItIes
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
atlantic egmore ceebros property Development 4Q 2016 17,000
avana Nungambakkam ar homes 2Q 2015 26,000
corniche egmore ramky Wavoo developers 4Q 2016 16,000
la verde Mare thoraipakkam Jains housing 4Q 2016 7,200
pallagio thoraipakkam casa Grande 4Q 2016 7,800
White rose thoraipakkam Bhoomi & Buildings 4Q 2016 5,999
adya
r
anna
Nag
ar
Nung
amba
kkam
alw
arpe
t / r
a p
uram
vela
cher
y
shol
inga
nallu
r
siru
seri/
Kaz
ipat
tur
t Na
gar
Beas
ant N
agar
Boat
clu
b
Boat club
siruseri/ Kazipattur
velachery
sholinganallur
anna Nagar
t Nagar
adyarBeasant Nagar
Nugambakkam
alwarpet /r a puram
During 1Q 2014, increased demand •for premium residential projects was noticed precisely in micro-markets, like R.A. Puram, Thoraipakkam, Alwarpet, Anna Nagar and Kilpauk. Mid-income projects have also witnessed marginally increased absorption in peripheral locations.
Chennai witnessed an increase in launch •of premium and mid-range projects in 1Q 2014.
During the quarter, Chennai based XS •Real Group and Hayat Invest Co. of Kuwait have partnered for a 14-acre residential project located near Siruseri IT Park. The project will target the middle-income group and is expected to be launched in 2Q 2014.
This quarter witnessed completion •of various premium projects such as “Centralis” by Coromandel Engg at Boat Club; “Sreshta Vasanth” by Sumanth & Co at Alwarpet; “Sukhin” by Barath Building Construction; and “Ananta” by AR Homes at Palavakkam, all priced in the range of INR12,000 to INR30,000 per sq ft; and mid-range projects like “Bollineni Hillside” by BSCPL Infra at Perumbakkam; “Amber” by Indus Builders at Saidapet; and “Belvedere” by Ceebros Constructions. These are currently priced in the range of INR5,300 - 8,500 per sq ft.
Capital values increased in the range •of 2 - 5% QoQ in the prime micro-markets, like T Nagar, Beasant Nagar and Sholinganallur. The remaining micro-markets were stable.
COLLIERS VIEW:• Demand from both occupiers and investors will continue to grow in the coming quarters. Further backed up by strong construction activities and new project launches, we expect an increase in capital values in almost all micro-markets.
8 Research & Forecast Report | May 2014 | Residential | Colliers International
Steady demand for premium residential •properties was seen during the quarter. Micro-markets like Whitefield, Electronic City, Hennur Road, Marathahalli and Binnypet witnessed new project launches in the price range of INR 3,500 - 6,100 per sq ft.
The market witnessed completion •of various premium and mid-range projects / parts of projects like “Brigade Petunia” by Brigade Group at Jayanagar; “Salarpuria Greenage” by Salarpuria Group at Bommanahalli; “Arya Ananya” by Arya Gruha at Whitefield; “Sobha Aspire” by Sobha Developers at Tumkur Road; “Legacy Ariston” by Legacy Group at Yelahanka; and “Neotown Smondoville” by Patel Realty at Electronic City.
During the surveyed quarter, capital •values rose in the range of 3 - 4% QoQ in micro-markets like Airport Road, Bannerghatta Road and Whitefield. However, the rest of the micro-markets remained stable. Continued demand from the IT/ITeS sector employees kept upward pressure on rentals and rents increased in the range of 2 - 9% QoQ in almost all micro-markets.
The state government has proposed an •elevated road from Basaveshwara Circle to Hebbal in order to provide a hassle-free drive to Kempegowda International Airport (KIA). The total cost of the project is expected to be around INR1,200 crore.
COLLIERS VIEW:• The overall sentiments look positive for the city. With increasing business confidence and a strong office market, demand in the residential sector is expected to improve from its current levels, specifically for premium and mid-range housing. A narrowing demand and supply gap should allow capital values to rise in the range of 4 - 6% in the near term across all micro-markets.
1Q 2014 2Q 2014F
capital value
rental value
New project
construction pace
BeNGaluru
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
enchante Whitefield olympia Group 3Q 2015 9,500
Godrej united Whitefield Godrej properties 4Q 2017 5,400
Miccassa Kogilu supertech Builders 4Q 2015 3,890
MJr clique electronic city MJr Builder 4Q 2016 3,490
park West Binnypet shapoorji pallonji Developers 4Q 2017 6,450
sterling asecentia Marathahalli sterling Developers 4Q 2016 6,100
0
4,000
8,000
12,000
16,000
24,000
28,000
20,000
32,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
15f
1Q20
14f
1Q20
11
3Q20
11
25,000
20,000
15,000
5,000
10,000
0
Bengaluru
Jayanagar
central
palaceorchard
cooke town
airport road
Indiranagar
Koramangala
Whitefield
Yelahanka
Bannerghatta road
80
60
40
20
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
airport road 5,000 - 7,000
Bannerghatta road 4,200 - 6,000
Whitefield 4,400 - 6,000
Yelahanka 3,500 - 5,000
INvestMeNt opportuNItIes
Yela
hank
a
Bann
ergh
atta
roa
d
airp
ort r
oad
airp
ort r
oad
Whi
tefie
ld
Jaya
naga
r
cook
e to
wn
Kora
man
gala
Indi
rana
gar
pala
ce o
rcha
rd
cent
ral
central
Yelahanka
Koramangala
Indiranagar
Jayanagar
Bannerghatta road
palace orchard
cooke town
airport road
Whitefield
9
1Q 2014 2Q 2014F
capital value
rental value
New project
construction pace
KolKata
1,000
3,000
5,000
9,000
7,000
13,000
15,000
19,000
17,000
11,000
21,000
23,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
15f
1Q20
14f
1Q20
11
3Q20
11
8,000
10,000
18,000
20,000
16,000
12,000
14,000
2,000
4,000
6,000
0
Kolkata
50
40
30
20
10
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
tollygunge 3,600 - 4,800
Behela 2,900 - 3,700
salt lake 4,000 - 6,000
eM Bypass 4,000 - 7,000
New town -rajarhat 3,200 - 4,600
INvestMeNt opportuNItIes
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
Blossom county New alipore vinayak Group 4Q 2018 6,100
citrus cove rajpur vinayak Group & ps srijan 4Q 2017 4,050
pratham Bt road Dhoot 4Q 2017 3,600
sankalpa Iv New town WBIDfc 4Q 2016 4,800
sonar Kella Baruipur arrjavv 4Q 2017 2,390
sukhmani Imperia Diamond harbour road sukhmani Develop-ers pvt ltd 4Q 2017 8,000
In 1Q 2014, end-users remained the •primary demand generator in the primary residential market. Micro markets like Rajarhat, EM Bypass, New Town and Baguihati remained the preferred locations due to proximity to employment hubs, affordability and upcoming infrastructure.
A few mid-range projects witnessed •completion this quarter, including “Sankalpa II & III” by WBIDFC at New Town and “Sunrise Symphony” by Surekha Group at Rajarhat. These projects were priced in the range of INR4,500 to INR4,800 per sq ft.
Capital values in the premium residential •market increased in the range of 1% to 9% QoQ in almost all the micro markets barring premium micro markets in central Kolkata where capital values remained stable. Correspondingly, rents also increased in the range of 2% to 9% QoQ in most of the micro markets; however, Bhawanipur, Tollygunge, Behela and New Town-Rajarhat registered a stable rent scenario this quarter due to large supply in these micro markets.
For the first time in Kolkata, the local •government has reduced the circle rate in the range of 8% to 33% across the city to streamline property valuation by reducing discrepancies between registration price and actual market value of the property.
COLLIERS VIEW:• The new government will play a vital role in terms of influencing and ruling the city’s real estate. However in observance of demand for mid-range and affordable housing projects, developers have started launching new projects. Going ahead, capital values are expected to strengthen further and increase in the range of 2% to 5% in the mid-term.
alip
ore
Bally
gung
e
Bhaw
anip
ur
eM B
ypas
s
pa s
hah
road
loud
on s
tree
t
New
tow
n -r
ajar
hat
salt
lake
tolly
gung
e
vIp
road
Behe
la
Bhawanipur
pa shah road
tollygunge
loudon street
Behela
aliporeeM Bypass
Ballygunge
salt lake
vIp road
New town rajarhat
Bhawanipur
eM Bypass
Ballygunge
Behela
tollygunge
p a shah road
New town - rajarhat
loudon street
alipore
vIp roadsalt lake
10 Research & Forecast Report | May 2014 | Residential | Colliers International
During this quarter, restricted demand •from speculators and investors has been seen in the premium and mid-range residential segments; however end-user demand remained positive.
The market witnessed launches of a few •mid-range residential projects during the surveyed quarter.
Various projects were completed this •quarter like “Suyog Nisrag” by Suyog Development Corporation at Wagholi; “Vishal Arc Glory” by Vishal Group at Hadapsar; “Shree Venkatesh Lake Vista” by Shree Venkatesh Buildcon at Ambegaon; “Megapolis Smart Homes” by Kumar Properties and “Village Residency” by The Pristine Horizon Promoters, both located at Hinjewadi; “Kirti Avenue” by Kirti Developers, “Gera Regent Manor” by Gera Development, and “Vascon Willows” by Vascon Infrastructure Ltd, all located at Baner.
Capital values in all micro-markets •increased in the range of 2 - 4% QoQ. However, the remaining micro-markets like Deccan, Camp and Boat Club were stable.
In a major land transaction, Kolte-Patil •Developers Ltd has bought 34 acres of land at Wakad for a consideration of approximately INR350 crore. The developer is planning a mixed-use project with residential and commercial development.
COLLIERS VIEW:• The city witnessed an increased number of inquiries for residential projects in both mid- and high end segments this quarter. In the coming quarter, we expect that the residential market will start gaining significant traction. Capital values are expected to rise in mid-price and affordable housing locations such as Pimpri Chinchwad, Chakan and Kondhwa in the marginal range of 2 to 3% on a quarterly basis.
1Q 2014 2Q 2014F
capital value
rental value
New project
construction pace
puNe
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
Balewadi f-residences Balewadi eiffel Group 4Q 2016 6,000
calyx’ Navyangan pirangut calyx Group 3Q 2017 3,150
Ganga platino Kharadi Goel Ganga Developments 4Q 2016 5,700
Majestique city Wagholi Majestique Group 4Q 2017 4,000
pharande puneville Wakad pharande spaces 1Q 2017 4,800
sobha orion Kondhwa sobha Developers 4Q 2017 7,000
1,000
3,000
5,000
7,000
11,000
15,000
13,000
9,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
15f
1Q20
14f
1Q20
11
3Q20
11
11,000
6,000
8,000
7,000
10,000
9,000
3,000
4,000
5,000
2,000
Pune
30
25
20
15
10
5
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
Kalyani Nagar/viman Nagar/Kharadi
5,000 - 12,000
Baner/hinjewadi/Wakad/pashan 3,800 - 6,000
Kothrud/Bavdhan/Wajre 3,800 - 6,000
NIBM/undri/Kondhwa 3,800 - 5,000
pimpri/chinchwad/chakan 3,000 - 4,500
INvestMeNt opportuNItIes
Kaly
ani N
agar
/vi
man
Nag
ar/
Khar
adi
Bhaw
anip
ur
Decc
an/c
amp/
Boat
clu
b
Bane
r/h
inje
wad
i/W
akad
/pas
han
Mag
arpa
tta/
had
apsa
r
NIBM
/und
ri/K
ondh
wa
Koth
rud/
Bavd
han/
Waj
re
pim
pri/c
hinc
hwad
/ch
akan
Kalyani Nagar/vi-man Nagar/Kharadi
Bhawanipur
Deccan/camp/Boat club
Baner/hinjewadi/Wakad/pashan
Magarpatta/hadapsar
NIBM/undri/
Kondhwa
Kothrud/ Bavdhan/ Wajre
pimpri/chinchwad
/chakan
Kalyani Nagar/viman Nagar/KharadiKothrud/Bavdhan/Wajre
NIBM/undri/Kondhwa
pimpri/chinchwad/chakan
Deccan/camp/Boat club/central puneMagarpatta/hadapsar
Baner/hinjewadi/Wakad/pashan
11
Mumbai
The high-end residential real estate markets in Mumbai include
Malabar Hill, Altamount Road, Carmichael Road, Napean Sea
Road, Breach Candy, Colaba, Cuffe Parade, Prabhadevi, Worli,
Bandra, Khar, Santacruz, Juhu and Powai.
Delhi
The prime residential areas in Delhi are in the South region and
comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan
and Central Delhi locations. These areas enjoy proximity to
embassies, the airport and central commercial areas - Connaught
Place.
Gurgaon
The prime residential locations of Gurgaon include Golf Course
Road, DLF Phase I, Sushant Lok, NH-8 and Sohna Road. Dwarka
Expressway, Sohna Region, Pataudi Road and Southern Peripheral
Road (SPR) are also emerging as a preferred residential location
owing to its proximity to the national capital.
NOIDA
NOIDA premium residential market is comprised of sectors
44, 50, 92, 61, 62, 63 , 28, 29, 30 and NOIDA - Greater NOIDA
Expressway. Most of the new projects launches are concentrated
in new sectors such as Sector 70 - 78 and sectors along NOIDA -
Greater NOIDA Expressway.
Chennai
The prime residential areas in Chennai include Boat Club,
R.A.Puram, MRC Nagar, Thiruvanmiyur, Valmiki Nagar and
Besant Nagar, R.A Puram, Mylapore and Adyar in South Chennai,
Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, T.
Nagar in Central Chennai; and Anna Nagar, Kilpauk in North
West Chennai.
Bengaluru (Bangalore)
The residential market of Bengaluru comprises both apartments
and independent residences. Currently, high-end residential
developments are mainly concentrated along the CBD, and
Eastern and South precincts of the city. Recently, Northern
Bengaluru has also witnessed a spree of realty activity facilitated
by the new International Airport at Devanhalli.
Kolkata
The prime residential areas in Kolkata include PA Shah Road,
Tollygunge and Bhawanipur in South Kolkata, Alipore and
Behala in South-west Kolkata, Loudon Street and Ballygunge in
Central Kolkata; and Salt Lake, EM Bypass and VIP Road in North
Kolkata.
Pune
The prime residential areas in Pune include Kalyani Nagar, Viman
Nagar, Boat Club Road, NIBM Road, Magarpatta, Hadapsar,
Koregaon Park. Recently, increased activities has been witnessed
in Pimpri-Chinchwad, Baner-Pashan and Kondhwa.
Residential Submarkets
CITY BAROMETERS
Increasing as compared to previous quarter
Decreasing as compared to previous quarter
Remained stable from previous quarter
12 Research & Forecast Report | May 2014 | Residential | Colliers International
Copyright © 2014 Colliers International.
ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
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