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Residential PropertyMarket OverviewINDIAQUARTERLY UPDATE | AUGUST | 2012Accelerating success.
2Q 2012 | RESIDENTIALResearch reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia RESIDENTIAL market    ...
INDIA | 2q 2012 | residential                                                                                             ...
INDIA | 2Q 2012 | residential                                                                                             ...
Residential property market overview 2Q 2012
Residential property market overview 2Q 2012
Residential property market overview 2Q 2012
Residential property market overview 2Q 2012
Residential property market overview 2Q 2012
Residential property market overview 2Q 2012
Residential property market overview 2Q 2012
Residential property market overview 2Q 2012
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Residential property market overview 2Q 2012

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The Indian residential market continues to see substantial levels of new projects entering into the market, which is creating more ‘Investor friendly’ environment, with increase in choice of quality product. Consistent demand for prime residential properties is putting a upward pressure on rentals as well as capital values in almost all the micro markets. As the government is taking initiatives to boost long term demand, transaction volumes are likely to see revival in the coming festive seasons.

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Residential property market overview 2Q 2012

  1. 1. Residential PropertyMarket OverviewINDIAQUARTERLY UPDATE | AUGUST | 2012Accelerating success.
  2. 2. 2Q 2012 | RESIDENTIALResearch reportSYDNEY CENTRAL BUSINESS DISTRICTresearch & forecast ReportIndia RESIDENTIAL market MACRO ECONOMIC OVERVIEW • DP growth rate saw a sharp reduction to 5.3% during 1Q 2012. The most impacted sector G includes agriculture, mining & quarrying, manufacturing and construction. Prime reasons attributed to this were uncertainties in domestic policy, cumulative impact of monetary tightening and slackening of external demand. • Inflation as measured by the wholesale price index (WPI), 7.25%, 7.55%, 7.23% in June, May & April respectively. There was upward pressure on the WPI, due to steep price increase of vegetable, milk, pulses & protein based items. While inflation remained a concern, the WPI stands 200 basis points lower in 2Q 2012 as compared to the same period last year. ECONOMIC BAROMETER • Early in the quarter, RBI cut the repo and reverse repo rates by 50 basis points each to boost the economy. However, the increased inflation rate has left a limited scope for further reduction in Jun-11 Jun-12 repo rates. REPO RATE 7.50% 8.00% • The rupee remained under pressure and depreciated further against both the Euro and the US REVERSE REPO RATE 6.50% 7.00% Dollar as foreign investors were worried about persisting inflation, and the current account gap. The Rupee closed at INR 55.68 to 1 USD and INR 70.04 to 1 Euro as on 15th June 2012. CRR 6.00% 4.75% • The Department of Industrial Policy and Promotion (DIPP) recorded a total FDI inflow for April INFLATION 9.51% 7.55% 2012 at $ 1.85 billion which is 41% lower as compared to $ 3.12 billion in April 2011. The housing 1 and construction sectors contributed only 2.96% to the total FDI received. Home Loan Rate 9.50% 11.00%Return on Alternative Investments ECONOMIC INDICATORS Jun-11 Jun-12 YoY % 12.0 Change Gold 22,114 30,097 31.10% 10.0 SILVER 52,590 54,494 3.62% 8.0 2 Fixed Deposit 8.25% 9.00% 9.09% 6.0 EQUITY 18,132 16,949 -6.52% REALTY INDEX 2,123 1,623 -23.56% 4.0 2.0 In Percentage 1 SBI Home Loan Rate for Loan upto INR 50 Lakhs. 2 0.0 SBI Fixed Deposit rate for a period of more than one year and Feb ‘08 Apr ‘08 Jun ‘08 Aug‘08 Oct‘08 Dec ‘09 Feb ‘09 Apr ‘09 Jun ‘09 Augt‘09 Oct ‘09 Dec ‘09 Feb ‘10 Apr ‘10 Jun ‘10 Aug‘10 Oct‘10 Dec ‘10 Feb ‘11 Apr ‘11 Jun ‘11 Aug ‘11 Oct ‘11 Dec ‘11 Feb‘12 Apr ‘12 Jun ‘12 amount below INR 1 Crore (-2.0) Repo Rate Reverse Repo Rate Cash Reserve Ratio Wholesale Price Index Source: Colliers International India Researchwww.colliers.com
  3. 3. INDIA | 2q 2012 | residential MUMBAI 2Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • In 2Q 2012, Mumbai residential market witnessed the launch of several new 70,000 60,000 residential projects, such as “Blu” by India 50,000 Bulls Ltd., “Habitat” by Naman Group, “Veda” 40,000 by Omkar Group, “Summit” by Rustomjee 30,000 Group, “Western Woods” and “Aarey Green” 20,000 INR per sq ft 10,000 both projects by Karamvir Avanta Group. All of 0 these projects were priced in the range of INR Khar Malabar Hill, Altamount Road, Carmichael Road Breach Candy, Napeansea Road, Peddar Road Colaba, Cuffe Parade Worli Prabhadevi Bandra Santacruz Juhu Andheri Powai 9,000 – 14,000 per sq.ft. except “Blu” at Worli which was launched at INR 40,000 per sq.ft. • In this quarter at most sites, the pace of construction remained slow, and no new residential project/phases of the project wasMUMBAI completed in Mumbai. CAPITAL VALUE TRENDS • Capital values in the western and centralCITY RESIDENTIAL BAROMETER suburbs have witnessed an increase in 75,000 the range of 2 to 10% quarter on quarter, 65,000 1Q 2012 2Q 2012 however, south central locations like Malabar 55,000 45,000 Hill, Altamount Road, Carmichael Road, 35,000 RENTAL VALUE Breach Candy, Napeansea Road, Peddar Road, 25,000 INR per sq ft Colaba, Cuffe Parade and Worli capital values 15,000 CAPITAL VALUE remained stable. 5,000 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 • The premium residential rental market Breach Candy, Khar Colaba, Andheri Napeansea Road, Cuffe Parade remained active in locations such as Peddar Road Prabhadevi Bandra Worli Powai Malabar Hill, Santacruz Napeansea Road, Bandra, Khar, Powai and Juhu Altamount Road, Carmichael Road Goregaon East; In these locations rental values appreciated in the range of 1 to 2% quarter on quarter. 2Q 2012 PREMIUM RESIDENTIAL AVerage COLLIERS RESIDEX 2Q 2012 - MUMBAI RENTAL VALUE • The state government has made an amendment 150 to the the new DCR rules, accordingly, area Malabar Hill, Altamount Road, used for balconies, flower beds, terraces, Carmichael Road 140 Breach Candy, Powai 200 Napeansea Rd., 130 voids, and niches will now be counted in the 150 Peddar rd. 120 110 Floor Space Index (FSI). According to the new Andheri 100 Colaba, Cuffe Parade 100 policy, land owners/developers will be given 50 90 80 a higher the FSI of 2.5 if they jointly develop 0 Worli 70 the plots of 2,000 sq.mtrs with Maharashtra Juhu 60 Housing and Area Development Authority 50 (MHADA). Santacruz Prabhadevi 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 Khar BandraRebase to 100 INR per Sq ft Per Month NEW PROJECTS Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Aarey Green Goregaon East Karamvir Avanta Group 4Q 2015 9,000 Blu Worli Indiabulls Ltd. 4Q 2016 40,000 Habitat Andheri West Naman Group 4Q 2014 14,000 Summit Borivali East Rustomjee Group 4Q 2014 9,500 Veda Parel Omkar Developer 2Q 2014 14,000 Western Woods Goregaon East Karamvir Avanta Group 4Q 2015 9,500 Note: * As quoted by developerp. 3 | Colliers International Colliers International | p. 3
  4. 4. INDIA | 2Q 2012 | residential Delhi 2Q 2012 PREMIUM RESIDENTIAL AVerage CAPITAL VALUE • During 2Q 2012, limited new supply was added in the city’s premium residential 100,000 90,000 inventory; several small redevelopment 80,000 residential projects were ready for possession 70,000 60,000 in locations such as Anand Niketan, Vasant 50,000 40,000 Vihar and Shanti Niketan. 30,000 INR per Sq Ft 20,000 10,000 • No new premium residential project was 0 launched during this quarter. Vasant Vihar Sunder Nagar Anand Niketan, Prithviraj Road, Aurangzeb Road Chanakya Puri Golf Links, Jor Bagh, Shanti Niketan, Westend Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh Greater Kailash I & II, South Extension • Capital values for premium residential properties appreciated in the range of 2 to 10% quarter on quarter across all the micro markets. The price increase was primarilydelhi attributed to limited prime supply and further scope of development. CAPITAL VALUE TRENDSCITY RESIDENTIAL BAROMETER • Parallel with capital values, rental values 100,000 also appreciated in the range of 6 to 10% on 90,000 80,000 1Q 2012 2Q 2012 quarter on quarter basis in locations such 70,000 60,000 as Panchashila, Anandlok, Niti Bagh, SDA 50,000 RENTAL VALUE (Safdarjung Development Area), Friends 40,000 30,000 INR per Sq Ft Colony and Maharani Bagh. However, rental 20,000 CAPITAL VALUE 10,000 values in locations such as Chanakya Puri, 0 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 Golf Links, Jor Bagh and Sunder Nagar declined by 7%. Golf Links, Jor Bagh, Sunder Nagar Prithviraj Road, Aurangzeb Road Chanakya Puri Shanti Niketan, Westend Panchashila, Anandlok, Niti Bagh, SDA Friends Colony, Maharani Bagh • This quarter the state govt. has proposed Greater Kailash I & II, South Extension Anand Niketan, Vasant Vihar three new flyovers in Delhi. A two way flyover will connect north and east Delhi connecting under construction Wazirabad Signature 2Q 2012 PREMIUM RESIDENTIAL average COLLIERS RESIDEX 2Q 2012 - DELHI Bridge to Bhajanpura. Two one way flyovers RENTAL VALUE will connect Delhi and Ghaziabad along with 150 Seelampur.These developments are expected 140 to ease out the traffic conditions in these Prithviraj Road, Aurangzeb Road 200 130 areas. Anand Niketan, Vasant Vihar 160 Chanakya Puri 120 120 110 80 100 Greater 40 Kailash I 90 & II, South 0 Golf Links, Jor Bagh, Extension Sunder Nagar 80 70 60 Friends Colony, Shanti Niketan, Westend Maharani Bagh 50 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 Panchashila, Anandlok, Niti Bagh, SDARebase to 100 INR per Sq ft Per Month Ongoing Projects Project Name Location Developer Name Tentative Possession Rate (Per Sq.ft.)* Kings Court Greater Kailash- II DLF Ltd. 1Q 2015 36,000 Queens Court Greater Kailash- II DLF Ltd. 1Q 2015 30,000 Capital Greens Shivaji Marg DLF Ltd. 2Q 2015 14,000 Winter Hills Dwarka Morh Umang Realtech 4Q 2013 7,000 Note: * As quoted by developerp. 4 | Colliers International

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