Citibank property-insights-q1-2014

1
India recorded a growth of 4.7% in Q3 FY14
(October-December 2013) over Q3 FY13. This was a
marginal decline compared to Q2 FY14’s growth rate
of 4.8%. Majority of the growth during the quarter
was driven by services sector. The ‘financing,
insurance, real estate and business services’ sector
registered maximum growth of 12.5% during the
quarter, followed by ‘community, social and personal
services’ sector, which grew at 7% and ‘trade, hotels,
transport and communication’ at 4.3%. Apart from
this, all other sectors witnessed a slowdown in the
growth rate as compared to the previous quarter. The
pick-up in manufacturing activity during Q2 FY14
failed to sustain its momentum and registered a
negative growth rate compared to the same period
last year. The ‘Construction’ sector’s performance
also remained almost at par with levels observed last
year, recording only a 0.6% growth. The overall GDP
growth for April-December 2013 was estimated at
4.6%, registering a marginal improvement from 4.5%
duringthesameperiodlastyear.
The Reserve Bank of India (RBI) raised the repo
rate by 0.25 basis points to 8% in January 2014. This
decisionwasdrivenbytheneedtosettheeconomyon
the disinflationary path; targeting CPI below 8% by
January 2015 and below 6% by January 2016.
ApprehensionofafurtherdeclineingrowthduringQ3
2013-14 due to subdued outlook evident in the
industrial and services sector also aided this decision.
The Asian Development Bank (ADB) revised India’s
2014-15 growth forecast to 5.5% from an earlier
estimate of 5.7% in October 2013. The RBI also
suggested that though a revival from around 5.0%
growth in 2013-14 is certain in the coming year,
downside risks to central estimate of 5.5% for 2014-15
remain. This prediction came on the back of
apprehensions that India might face a weak monsoon
season this year. Additionally, there have been no
clear indicators on sustained revival of industrial and
services sector amidst a moderation in global
economic activity. The easing of supply bottlenecks,
revival of exports with pick-up in the world economy
andtheimplementation of stalled projects all have to
play a role in sustaining this positive outlook. The
INDIA MARKET OVERVIEW
GROSS DOMESTIC PRODUCT GROWTH RATE
PROPERTY
INSIGHTS
India Quarter 1, 2014
Subdued Demand, Stable Outlook
GrowthRate(%)
Source: Central Statistical Organisation, Govt. of India
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Oct-Dec
07
Jan-M
ar 08
Apr-Jun
08
Jul-Sep
08
Oct-Dec
08
Jan-M
ar 09
Apr-Jun
09
Jul-Sep
09
Oct-Dec
09
Jan-M
ar 10
Apr-Jun
10
Jul-Sep
10
Oct-Dec
10
Jan-M
ar 11
Apr-Jun
11
Jul-Sep
11
Oct-Dec
11
Jan-M
ar 12
Apr-Jun
12
Jul-Sep
12
Oct-Dec
12
Jan-M
ar 13
Apr-Jun
13
Jul-Sept 13
Oct-Dec
13

Economic Trends
Trends & Updates
2
EXCHANGE RATE MOVEMENT (INR/USD)
BSE REALTY INDEX
Source: RBI
INR/USD
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Mar-13
Mar-14
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-13
Jan-14
Feb-13
Feb-14
70
65
60
55
50
45
40
INDEX
Source: BSE
Jun-10
Jun-11
Jun-12
Jun-13
Sep-10
Sep-11
Sep-12
Sep-13
Dec-10
Dec-11
Dec-12
Dec-13
M
ar-11
M
ar-12
M
ar-13
M
ar-14
4000
3500
3000
2500
2000
1500
1000
500
500
1
Top eight cities include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune.
Current Account Deficit (CAD) shrunk to 0.9% of
GDP during Q3 2013-14 due to a narrowing trade
deficit resulting from higher exports and
moderation in imports. However, it is expected to be
around 2% of the GDP for 2013-14, much lower than
the 4.8% of GDP in 2012-13. External financing
conditions improved in February, as investors
started responding to the economic developments
in emerging markets by the way of reallocations
considering the probable impact of the U.S. Fed
tapering. However, exports growth dipped during
the quarter, amidst decline in global demand due to
overall slowdown.
The commercial office space across top eight
1
cities of India recorded total net absorption of 5.9
million square feet (msf) during the first quarter of
2014. Nearly 92% of this net absorption was in Grade
A developments. Hyderabad contributed 30% of the
total net absorption during the quarter followed by
NCR with 25% share. Majority of the absorption in
Hyderabad (which recorded more than 100%
quarterly rise) was driven by pre-commitments. The
total leasing during this period across the top eight
cities was 8.5 msf, indicating the continuing trend of
relocation. These cities recorded a total supply of
nearly 7.3 msf during the quarter and an overall
vacancy of 18.9%. In the retail sector, only 0.35 msf of
mall space supply was added across the eight cities
compared to 1.18 msf in Q4 2013. Due to this supply
decline and stable transaction activity, mall vacancies
dropped or remained stable in most of the cities
exceptAhmedabadandPune.
In1Q2014,residentialunitlaunchesacrossthetop
eight cities recorded a quarter-on-quarter (q-o-q)
increase of 42%. Nearly 55,500 units were launched
in this quarter, with Bengaluru contributing around
30% to the total launches. The capital values
continued to remain sticky across segments in these
top cities. However, GST submarket in Chennai
recorded the highest quarterly capital value
appreciation of 10% in the mid-end segment due to
persistent demand for residential properties located
in proximity to the workplaces. Quarterly mid-end
segment capital value appreciation of upto 8% was
recorded in certain submarkets of Bengaluru,
Hyderabad and Pune. NCR witnessed a correction
across segments in certain submarkets of the city due
to sluggish demand and unsold inventory pile-up.
Thus, although the launch activity picked up during
the quarter, residential markets across cities
continued to exhibit a subdued demand trend with
buyers adopting a wait-and-watch approach due to
prevailing economic scenario and uncertainty on
resultsofupcominggeneralelections.
After the repo rate hike in January 2014, headline
inflation receded from 11.2% in November 2013 to
8.1% in February 2014. This decline in inflation could
be attributed to the sharp seasonal correction in food
prices.Theex-foodandfuelCPIinflationhasremained
sticky at around 8% for nearly 20 months in a row,
posing significant threat to growth and making a
strong case for retightening of monetary policy to
align with country’s fiscal targets. The WPI inflation
also eased to 4.7% in February 2014 from 7.5% in
November 2013. This was led by the disinflationary
impulses in food prices; however, the inflation in non-
food manufactured products rose marginally from
2.2-2.6% in May-September 2013 to 3.1% in February
2014. The RBI has stated that though the inflation

FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR
has started to moderate, further easing of
inflationary pressures will depend on the impulses
from policy actions, the play of food inflation and the
extent of negative output gap. Thus, although the
inflation is expected to moderate, it is likely to
remain above the comfort zone.
The Indian economy recorded a GDP growth of
4.7% in Q3 2013-14. Although this was marginally
higher than the growth recorded during the
corresponding quarter of previous year, concerns of
growth revival escalated because the economy now
needs to record a 5.5% growth in Q4 2013-14 in order
to meet estimates of 4.9% GDP targeted for the fiscal
year. This seems difficult considering Q3 2013-14 was
the seventh consecutive quarter with a sub 5%
growth. Although moderation in inflation provided
someroomforrecovery,thedownsideriskscontinued
to remain due to weak performance of the
manufacturing sector and increased risks to the
agricultural sectors’ performance due to
uncertainty of south-west monsoons. Thus, recovery
remains largely dependent on improvement in the
investment climate, external demand facilitated by
improvement in global financial and monetary
conditions and improvement in business and
consumer confidence aided by the formation of a
stable central Government. The Rupee closed at INR
60.1 against the U. S. Dollar in March 2014 almost
reaching levels prior to the devaluation/volatility
slide in June 2013. This improvement in the Rupee
value could majorly be attributed to the decline in
inflationary pressures during the past two-three
months. In addition, reallocations and improvement
Residential capital values remained stable across
the high-end segment in Ahmedabad, Chennai,
Hyderabad and Mumbai. Mid-end segment capital
values in Ahmedabad and Mumbai also remained
stable; however GST Road in Chennai registered a
10% appreciation on a q-o-q basis, mainly driven by
high demand from working professionals and new
projects being launched at higher price points.
Though high-end capital values for Bengaluru mostly
remained stable, certain areas such as Koramangala,
JP Nagar, Bannerghatta, Kanakpura, etc. in the
southern region registered a marginal q-o-q
in the external financing conditions also played a
pivotal role in strengthening of the Rupee.
The tightening of financial conditions during
beginning of the year, the downslide of inflation and
the improvement in the Rupee contributed to the
recovery in BSE Realty Index. The index touched 1468
st
points on 31 March 2014 at the close of the financial
year, rising nearly 35 points above its December
closingof1433points.
India witnessed total FDI inflows of INR 24,632
crore in Q3 2013-14 (October-December 2013). The
Construction Development sector contributed 6%
(INR 1,432 crore) to the total FDI, registering a 55% q-
o-qdecline.Thisdeclinecouldmajorlybeattributedto
the fact that the previous quarter registered highest
FDI in Construction Development in sixteen quarters.
In addition, FDI numbers for July-September 2013
were revised to 45,153 crore, leading to overall q-o-q
decline of 45%. Thus, the improvement in market
sentiment evident from the pick-up in FDI inflows
duringthelastquarterfailedtosustaininQ32013-14.
Residential Trends
RESIDENTIAL CAPITAL VALUES GROWTH INDEX
3
INRCrore
Source: Dept. of Industrial Policy & Promotion, Govt. of India
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
171
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
12013-14
22013-14
32013-14
2,121
8,749
12,621
13,586
5,149
3,443
7,248
946
3,210
1,432
Source: Cushman & Wakefield Research
200120022003
2004200520062007
200820091Q20102Q
2010
3Q
2010
4Q
20101Q20112Q
2011
3Q
2011
4Q
20111Q20122Q
2012
3Q
2012
4Q
20121Q20132Q
2013
3Q
2013
4Q
20131Q
2014
1,000
900
800
700
600
500
400
300
200
100
-
Bengaluru (Brunton Road Lavalle Road) Chennai (Boat Club)
Kolkata (Ballygunge)
NCR (Satya Niketan and Anand Kiketan)
Hyderabad (Banjara Hills)
Mumbai (South)
Pune (Koregaon Park)

appreciation. The quarterly mid-end segment
appreciation ranged from 1-7% across Bengaluru. In
Hyderabad, areas such as Madhapur, Gachibowli,
Miyapur, Nizampet and Kukatpally registered a 3% q-
o-qcapitalvalueappreciationinthemid-endsegment.
Prices in Kolkata also remained sticky except in high-
end properties of South-east (comprising of locations
such as EM Bypass, Christopher Road and Pancha
Sayar) where new units were launched at higher price,
leading to 3% q-o-q capital value increase. A few
micro-markets in Pune witnessed 2-3% q-o-q
increase in capital values in the high-end segment
and 2-8% increase in the mid-end segment. This was
primarily due to project launches at higher prices
and higher demand for properties in close proximity
to the commercial hubs. NCR was the only location
that witnessed q-o-q capital value correction of 3-
9% in certain locations in both the high-and-mid-end
segments, primarily due to subdued demand and
decline in transaction activities.
Nearly 55,500 units were launched in the first
quarter of 2014. The launch activity picked up by 42%
compared to the last quarter of 2013. Ahmedabad
and NCR were the only two cities that registered a
quarterly decline of new launches; 8% and 18%
respectively. Conversely, number of launches almost
tripled in Kolkata and Chennai. The increase in the
number of launches in Kolkata was mainly due to the
launch of a large township project. Maximum number
of project launches was witnessed in Bengaluru
among the top eight cities; it contributed nearly 30%
of the total number of launches in the 8 cities during
the quarter. Mumbai contributed almost 19% of the
units launched. Although NCR witnessed a decline in
the number of new launches, it still featured among
the top three cities with maximum project launches
for the quarter. Pune registered new launches in the
range of 3,500-4,000 units for the third consecutive
quarter. Hyderabad, which registered the lowest
number of launches this quarter (930 units), recorded
a 25% increase from Q4 2013. Going forward, new
launch activity in Hyderabad is likely to remain stable
or increase marginally as several delayed projects are
expectedtobelaunchedinH12014.
4
NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 1Q 2014
35%
30%
25%
20%
15%
10%
5%
0%
Ahm
edabad
Bengaluru
Chennai
Hyderabad
Kolkata
M
um
bai
NCR
Pune
4%
30%
13%
2%
12%
19%
12%
7%

5
Index
Ahmedabad................................................................................... 6
Bengaluru...................................................................................... 9
Chandigarh.................................................................................... 14
Chennai.......................................................................................... 17
Hyderabad..................................................................................... 23
Kolkata........................................................................................... 30
Jaipur........................................................................................... 27
Mumbai.......................................................................................... 35
National Capital Region.............................................................. 40
Pune............................................................................................... 44

Ahmedabad
Market Overview
In 1Q 2014, nearly 2,300 units were launched in
Ahmedabad, a q-o-q decline of 8%. However, the
number of projects launched more than doubled,
indicating absence of any significantly large project
launch in 1Q 2014. Around 30% of the new launches
were concentrated in West Ahmedabad at locations
such as Makarba, Thaltej and Vasna, followed by
Vastral in East (21%) and Ranip in the North (19%).
Approximately 55% of the new unit launches catered
to the mid-end segment and 45% cater to the
affordable segment. Due to stable demand, capital
values remained unchanged during the quarter.
Developers in the city primarily focussed on clearing
existing unsold inventory rather than launching new
projects.
In 1Q 2014, overall net absorption in Ahmedabad
office market was 608,000 sf, more than double the
previous quarter. The substantial increase in net
absorption was due to earlier pre-commitments that
were absorbed during this quarter. The city also
witnessedhealthysupplyadditionof1msfofficespace
during the quarter, an increase of 9% from the
previousquarter.
Given the limited availability of quality spaces and
no new malls becoming operational in the last two
years, overall transaction activity in Ahmedabad’s
mall segment has been insignificant. However, main-
streets in the suburban business districts such as
Prahladnagar and S.G. Highway witnessed increased
enquiries from the BFSI (bank branches, financial
advisors, etc.) and Food & Beverages (F&B) sectors. A
few lifestyle and home improvement brands have also
relocated and expanded operations in these areas. In
1Q2014,rentalvaluesremainedstableacrossallmajor
mallsandmain-streetlocationsofthecity.
Due to stable demand, ready residential
properties’ capital values remained stable compared
to the previous quarter, across all micro-markets in
the mid-and-high-end segments. End-users’
Trends & Updates
Ready Residential Property Update
preference for emerging locations on the S.G.
HighwayandBopalwashighduetoavailabilityofunits
betweenINR20-40lakhsmainlyattheselocations.
6
READY RESIDENTIAL PROPERTY VALUES IN MARCH '14
Source: Cushman & Wakefield Research Represents Mid and High End segments
Alitus
Orchid Woods
Maple County
Godrej Garden City
Smarana Apartments
Agora Residency
6,000
5,000
4,000
3,000
2,000
1,000
0
5,400
4,400 4,500
3,300
3,600
2,900

In 1Q 2014, number of new launches in Ahmedabad
declined by 8% on a quarterly basis. Launches during
the quarter were scattered across West, East and
North Ahmedabad. Affordable project launches were
primarily in the peripheral locations of South and East
New Residential Launches
Ahmedabad while launches in the mid-segment were
in the West and North Ahmedabad. Approximately
49% of the units launched were 2 BHKs whilst 40%
were3BHKandtheremainingwere1BHKand4BHK.
* Estimated and as per market information
Project Name Developer Location Number of Units* Type Area of Units (sf)
Malabar County II 442 Apartment 3 BHK: 1,620 to 1,701Ganesh Housing Near Nirma University
(S.G. Highway)
Suryam Elegance –
Phase 1
322 Apartment 2 BHK: 1,161 to 1,269Suryam Developers Vastral
Aakruti Aangan 320 Apartment 1 BHK: 405
2 BHK: 873
Aroma Reality Narol
Satyadeep Heights 320 Apartment 2 BHK: 1,050
3 BHK: 1,450
Deep Group Makarba
Rajyash Reevanta 272 Apartment 2 BHK: 535Rajyash Group Vasna
Aarohi Pratistha 208 Apartment 2 BHK: 1,092 to 1,285Siddhi Developers South Bopal
Silver Casa 176 Apartment 2 BHK: 1,180Avirat Group Thaltej
Suryam Pride 132 Apartment 2 BHK: 1,098
3 BHK: 1,359
Suryam Developers Vastral
Aaryan Opulence 78 Apartment 3 BHK: 2,675
4 BHK: 3,450 to 3,520
Aaryan Developers Bopal Ambli Road
Suryam Placid 41 Villas 3 BHK: 1,485Suryam Developers Vastral
Average Capital Values – High End (INR '000/sf)
Satellite
Vastrapur
S.G.Highway
Prahlad Nagar
Location
4.0 - 4.8
3.7 - 4.0
3.7 - 4.3
4.2 - 5.3
2010
4.3 - 6.0
3.7 - 5.0
3.7 - 4.5
4.2 - 6.0
2011
4.3 - 6.0
3.7 - 5.0
3.7 - 4.5
4.2 - 6.0
2012
4.3 - 6.0
3.7 - 5.0
3.7 - 4.5
4.2 - 6.2
2013
4.3 - 6.0
3.7 - 5.0
3.7 - 4.5
4.2 - 6.2
1Q 2014
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)
Satellite
Vastrapur
S.G.Highway
Prahlad Nagar
Location
2.8 - 3.8
2.6 - 3.5
3.0 - 3.8
2.8 - 3.6
2010
2.8 - 4.3
2.6 - 3.8
3.3 - 4.3
3.2 - 4.2
2011
2.8 - 4.3
2.6 - 3.8
3.3 - 4.3
3.2 - 4.2
2012
2.8 - 4.3
2.6 - 3.9
3.0 - 4.3
3.2 - 4.3
2013
2.8 - 4.3
2.6 - 3.9
3.0 - 4.3
3.2 - 4.3
1Q 2014
Note: The above values for mid-end segment typically include units of 1,200-1,800 sf
7

Under Construction Residential Property Update
During 1Q 2014, locations in West Ahmedabad
such as Bopal and South Bopal and Vaishnodevi in
the North witnessed healthy construction activity in
the affordable and mid-end segments. In this
quarter, stable demand levels resulted in stagnating
capital values for under construction projects across
all sub-markets.
Commercial Office Sector
In 1Q 2014, office space net absorption was
concentrated in submarkets of Gandhinagar (66%),
Prahladnagar (25%) and Sarkhej-Gandhinagar
Highway (10%). BFSI (49%), IT-ITeS (33%) and
Pharmaceutical (6%) were the highest contributors
to transaction activity during the quarter. Despite
significant supply, healthy transaction activity
helped to keep vacancy levels under control. In 1Q
2014, Grade A developments’ vacancy levels
increased marginally to 36.3%. Rental values
continued to remain stable from the previous
quarter across all major sub-markets.
Retail Sector
Increasing vacancy levels were noted in a few
malls along the S.G. Highway, resulting in overall mall
vacancy increase of 1.3 percentage points, which was
noted at 31.6% in 1Q 2014. Despite increase in mall
vacancy, landlords continued to quote similar
rentals across all sub-markets. In 1Q 2014, only a few
retailers exited mature main-streets such as C.G.
Road, Law Garden and Satellite Road. In addition,
limited availability of quality spaces led to marginal
opportunities for new retailers to expand at these
locations. Due to the limited transaction activity,
rental values remained stable from the previous
quarter across all main-streets of Ahmedabad.
Outlook
Stable residential real estate demand is likely to
result in stagnant capital values during the next
quarter. However, with economic conditions likely to
improve in H2 2014 (post elections); demand in the
residential segment might improve gradually. The
new Development Control Regulations, which are
now under effect, are likely to result in increased
redevelopment activity in the old city areas (which
have been given higher Floor Space Index - FSI, as a
part of R1 zone).
Approximately 500,000 sf of Grade A space is
expected to become operational at Prahladnagar in
the second quarter of 2014. With low pre-
commitments in these developments, vacancy is
likely to increase in the upcoming quarter. This could
result in a downward pressure on rentals at select
locations in the city.
Healthy demand for main-street locations such as
Prahladnagar and S.G. Highway could result in rental
increase at these locations. In the short-term, mall
rentals at S.G. Highway might witness a correction
due to existing high vacancy levels. Considering
higher preference for main-streets and prevailing
high vacancylevelsinmalls,developersarenotpresently
undertakinganynewmallconstructioninthecity.
8

Bengaluru
Market Overview
Trends And Updates
In 1Q 2014, quarterly uptrend of 3-7% was noted in
capital values of select mid-end submarkets.
Submarkets like North appreciated as the Hebbal-
Airport expressway became operational, North-west
due to commencement of metro rail line between
Peenya-Sampige Road and Off-Central** because of
supply paucity. Increased interest from employees of
IT-ITeS companies led to a similar trend in Far South
submarket; while demand spill-over from prominent
residential localities like Jayanagar, Banashankari,
etc.ledtocapitalvalueappreciationintheWest.
In 1Q 2014, the Bengaluru residential market
witnessed significant activity with more than 16,800
unit launches, a q-o-q increase of about 22%. Mid-
end segment offerings continued to dominate (75%
of total number of launches) due to continued
demand generated from mid-level employees of IT-
ITeS companies. Similar to the previous quarter, the
Southern submarket contributed heavily (47%) to
the new launches, followed by the Eastern
submarket contributing 36%. Only select
submarkets like North, Off-Central**, North-west,
Far South and West witnessed 3-7% q-o-q capital
value appreciation for the mid-end properties.
In 1Q 2014, nearly 750,000 sf supply was added to
the Bengaluru office sector. Owing to deferment of
select under construction projects, q-o-q supply
declined nearly by 23%. Reiterating last year’s
trend, Outer Ring Road (ORR) accounted for 79% of
the supply in 1Q 2014 approximately. Better
connectivity, close proximity to residential
developments and competitive rentals led to a high
occupier interest at this location, leading to a
significant traction in activity in this region.
Similar to the last year’s trend, in Q1 2014, no new
mall supply was added in the retail market.
Consequently, overall mall vacancy was recorded at
approximately 7.5%, a marginal q-o-q decline of 1%.
Healthy demand from apparel, footwear and F&B
retailers contributed to this decline. Although there
was a drop in overall vacancy, the average quoted
rentals still remained the same as spaces were
leased to premium brands at relatively lower rentals
with an aim to optimize tenant mix in the malls.
Excellent demand existed for upcoming malls in
Northern areas owing to scarcity of operational
malls in this submarket.
9
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
12,000
10,000
7,250 6,750 7,250 5,250
Brigade Gateway
Prestige Acropolis
Sobha Petunia
Elita Promenade
Brigade Metropolis
Purva Venezia

Key to locations:
High-end Segment
Central: Lavelle Road, Off Palace Road, Off Cunnigham
Road, Ulsoor Road, Richmond Road
South: Koramangala, Outer Ring Road, Bannerghatta
Road, JP Nagar
Off-Central: Frazer Town, Benson Town, Richards Town,
Dollars Colony
East: Whitefield (villas)
North: Hebbal, Yelahanka, Jakkur, Devanahalli
Mid-end Segment
Central: Brunton Road, Artillery Road, Ali Askar Road,
Cunningham Road
East: Marathalli, Whitefield, Old Airport Road
South-East: Sarjapur Road, Outer Ring Road, HSR
Layout
South: Kormangala, Jakkasandra
South-West: Jayanagar, J P Nagar, Kanakpura Road,
Bannerghatta Road, BTM Layout
North: Hebbal, Bellary Road, Yelahanka, Dodballapur
Road, Jalahalli
Off-Central*: Vasanth Nagar, Richmond Town,
Indiranagar
Off-Central**: Cox Town, Frazer Town, HRBR, Benson
Town, etc
North-West: Malleshwaram, Rajajinagar
10
Note: The above values for mid-end segment typically include units of 1,600-2,000 sf.
Average Capital Values – Mid-Segment (INR’000/sf)
Location
Central
East
South-East
North
South-West
Off-Central*
Off-Central**
North-West
South
2008
5.8 - 7.0
2.7 - 3.1
2.9 - 4.0
3.0 - 4.0
2.8 - 4.2
3.5 - 6.0
4.0 - 6.0
4.2 - 5.8
5.0 - 6.5
2009
5.0 - 6.0
2.4 - 2.7
2.5 - 3.2
2.8 - 4.0
2.7 - 3.9
3.3 - 5.7
3.7 - 5.7
3.5 - 5.2
4.6 - 5.7
2010
5.5 - 7.0
2.7 - 3.1
2.8 - 4.0
2.8 - 4.4
3.2 - 4.5
4.0 - 6.2
3.8 - 6.2
3.8 - 5.6
4.8 - 6.0
2011
6.0 - 7.5
3.2 - 3.8
3.4 - 5.0
3.0 - 4.8
3.6 - 5.0
4.5 - 6.7
4.3 - 6.7
4.3 - 6.2
5.0 - 6.5
2012
6.0 - 8.0
3.8 - 4.8
4.0 - 5.5
3.5 - 5.5
4.0 - 5.5
5.0 - 7.5
5.0 - 7.0
4.5 - 6.5
6.0 - 9.0 6.0 - 9.0 6.0 - 9.0
1Q 2014
9.0 - 12.0
4.0 - 5.5
4.5 - 6.0
4.5 - 6.5
7.0 - 10.0
6.5 - 8.5
6.0 - 6.5
2013
9.0 - 12.0
4.0 - 5.5
4.5 - 5.9
4.5 - 6.5
7.0 - 10.0
6.0 - 8.0
5.5 - 6.5
3.8 - 5.53.5 - 5.5
Note: The above values for high-end segment typically include units of 2,000-4,000 sf.
Location
Central
South
Off-Central
East
North
2009
12.0 - 14.5
6.0 - 8.5
5.0 - 6.8
5.6 - 7.0
5.5 - 7.0
2010
13.5 - 17.5
6.0 - 9.5
5.0 - 7.0
6.5 - 7.5
5.5 - 7.0
2011
14.0 - 18.0
6.5 - 10.0
6.0 - 8.5
6.8 - 8.0
6.5 - 8.0
2012
18.0 - 28.0
6.5 - 10.0
7.0 - 9.0
6.5 - 9.0
6.5 - 8.2
1Q 2014
18.0 - 30.0
7.0 - 10.3
8.0 - 11.0
6.5 - 10.0
7.0 - 9.5
2013
18.0 - 30.0
6.8 - 10.3
8.0 - 11.0
6.5 - 10.0
7.0 - 9.5
Average Capital Values – High-end (INR’000/sf)
2008
14.0 - 18.0
7.0 - 9.0
6.5 - 7.5
6.5 - 9.0
6.0 - 8.0

In 1Q 2014, 16,800 units were launched in
Bengaluru, a q-o-q increase of around 22%.
Reiterating past trends, mid-end segment continued
to dominate launches with around 75% contribution
while affordable segment accounted for an
additional 18%. Majority of the demand was
propelled by junior to mid-level employees working
in IT-ITeS companies; developers focussed on mid-
end segment offerings. Locations such as Sarjapur
Road and Electronic City located in the Southern
submarket accounted for 47% of the new launches
while the Eastern submarket including Varthur Road
contributed additional 36%. Availability of adequate
social infrastructure and proximity to workplaces
has been instrumental in sustaining buoyant
demand for Eastern and Southern submarkets.
Location Number of Units* Type Area of Units (in sf)Project Name Developer
Prestige Lakeside
Habitat
Prestige Group Varthur Road 3,426 Apartment 2 BHK: 905 to 1,346
3 BHK: 1,655 to 2,338
4 BHK: 2,830
Purvankara Palm
Beach
Purvankara
Developers
Hennur Road 1,323 Apartment 2 BHK: 1,232
3 BHK: 1,481 to 1,846
Republic of Whitefield Divyasree
Developers
Whitefield 1,306 Apartment 2 BHK: 712 to 1,372
3 BHK: 1,724
Indya Greens -
Phase II
Indya Estates Attebelle-Anekal Road 1,278 Apartment 2 BHK: 695 to 890
3 BHK: 1,118 to 1,202
Shriram Summit Shriram Properties Electronic City 947 Apartment 1 BHK: 670 to 780
2 BHK: 1,190 to 1,310
3 BHK: 1,370 to 1,640
Sobha Silicon Oasis Sobha Developers Kudlu Junction,
Hosur Road
918 Apartment 2 BHK: 1,350
3 BHK: 1,500 to 1,850
Purvankara West End Purvankara Developers Hosur Road 740 Apartment 2 BHK: 1,184
3 BHK: 1,415 to 18,91
MJR Clique MJR Group Electronic City 585 Apartment 1 BHK: 665
2 BHK: 1,140 to 1,315
3 BHK: 1,425 to 1,720
SJR Hamilton Homes SJR Developers Off Sarjapur Road 408 Apartment 1 BHK: 623
2 BHK: 937
3 BHK: 1,229 to 1,400
Hiranandani
Queensgate
House of
Hiranandani
Bannerghatta Road 400 Apartment 1 BHK: 565
2 BHK: 985 to 1,205
3 BHK: 1,685
VRR Fortuna VRR Builders &
Developers
Sarjapur Road 388 Apartment 2 BHK: 1,300 to 1,370
3 BHK: 1,680 to 1,745
Kolte Patil Mirabilis Kolte Patil Horamavu 386 Apartment 2 BHK: 1,100 to 1,389
3 BHK: 1,488 to 1,593
4 BHK: 2,266
Alpine Fiesta Alpine Developers Whitefield 320 Apartment 2 BHK: 936 to 1,221
3 BHK: 1,399
Unishire Spacio Unishire Developers Bannerghatta Road 300 Apartment 2 BHK: 1,266 to 1,294
3 BHK: 1,539 to 2,156
Hiranandani Glen Gate House of Hiranandani Hebbal 288 Apartment 2 BHK: 1,245 to 1,420
3 BHK: 1,630 to 1,665
Prestige Lakeside
Habitat
Prestige Group Varthur Road 271 Villas 3 BHK: 3,117 to 3,130
4 BHK: 4,003 to 4,934
Bren Woods Bren Corporation Electronic City 254 Apartment 2 BHK: 1,046 to 1,062
3 BHK: 1,281 to 1,377
11

12
HRC Ibbani HRC Developers Jakkur 243 Apartment 2 BHK: 1,279 to 1,450
3 BHK: 1,645 to 1,687
Supertech Micasa Supertech Developers Thanisandara
Main Road
224 Apartment 2 BHK: 1,100 to 1,136
3 BHK: 1,386 to 1,735
ND Orchids ND Developers Sarjapur Main Road 220 Apartment 2 BHK: 810 to 995
3 BHK: 1,235 to 1,360
Manar Pure Earth Manar Developers Sarjapur Road 208 Villas 3 BHK: 1,675 to 2,316
4 BHK: 3,972
GR Sankalpa GR Constructions Sarjapur Road 185 Apartment 2 BHK: 1,175 to 1,350
3 BHK: 1,440 to 1,450
Lilium Gardenia Dhammangani
Developers
Off Thanisandara
Road
185 Apartment 2 BHK: 977 to 1,045
3 BHK: 1,431 to 1,593
LGCL New Life LGCL Developers Harlur Road 170 Apartment 3 BHK: 1,300 to 2,500
4 BHK: 2,500 to 3,000
Trifecta Starlight Trifecta Developers Mahadevpura 166 Apartment 2 BHK: 1,045 to 1,212
3 BHK: 1,313 to 1,337
Aparna Elina Aparna Group Yeshwantpur 152 Apartment 3 BHK: 1,940 to 2,100
4 BHK: 2,610 to 3,835
5 BHK: 5,310
Sai Vadana
Brindavanam
Sai Vadana
Developers
Sarjapur Road 150 Apartment 2 BHK: 1,118 to 1,401
3 BHK: 1,465 to 1,666
Concorde Amber Concorde Group Sarjapur Road 150 Apartment 2 BHK: 1,100 to 1,200
3 BHK: 1,300 to 1,400
Max Meridian Maxworth Realty Yelahanka 147 Apartment 2 BHK: 975 to 1,570
3 BHK: 1,880
Pride Wilasa Pride Housing JP Nagar 138 Apartment 3 BHK: 2,791 to 2,929
4 BHK: 3,498 to 3,621
TG Lakeside Vista TG Developers Begur 128 Apartment 2 BHK: 1,097 to 1,208
3 BHK: 1,341 to 1,625
Nester Harmony Nester Group Whitefield 127 Apartment 2 BHK: 948
3 BHK: 1,183 to 1,644
Cauvery Serenity Cauvery Developers Yeshwantpur 124 Apartment 2 BHK: 1,223 to 1,358
3 BHK: 1,783 to 1,999
4 BHK: 1,936 to 2,387
President Leone President Properties Yelahanka 109 Apartment 3 BHK: 1,150 to 1,845
Mahaghar's Vajra Mahaghar Developers Kanakpura Road 96 Apartment 2 BHK: 850 to 1,195
3 BHK: 1,300 to 1,535
Mantri Courtyard Mantri Developers JP Nagar 95 Villas 3 BHK: 1,690 to 2,100
4 BHK: 2,795 to 3,495
VRR Vista Sarovar VRR & Co. Whitefield 72 Apartment 2 BHK: 1,100 to 1,240
3 BHK: 1,360 to 1,420
Eternity Astral Eternity Structures Bellandur 72 Apartment 2 BHK: 980 to 1,125
3 BHK: 1,360 to 1,430
Chartered
Grasshopper
Chartered Housing Off Hosur Road 56 Villas 3 BHK: 3,500
4 BHK: 3,990
Unishire Signature Unishire Developers Jakkur 53 Apartment 3 BHK: 2,300 to 2,500
4 BHK: 2,700 to 2,900
Samruddhi Bliss Samruddhi Developers Hosa Road 40 Apartment 2 BHK: 1,200
3 BHK: 1,400
Purva Coronation
Square
Purvankara
Developers
JP Nagar 20 Villas 4 BHK: 6,095 to 6,400

Retail Sector
Most main streets witnessed q-o-q stability in
rental values. However, there was a q-o-q rental
decline of around 7% for properties located on the
Vittal Mallaya Road, due to a drop in trading densities.
In addition, main streets like Commercial Street,
Brigade Road, Jayanagar 4th Block and Kormangala
80 Feet Road continued to witness demand from
apparel,electronics,footwearandF&Bretailers.
In 1Q 2014, 1.5 msf of office space was leased in
Bengaluru whilst net absorption accounted for only
33% of the leasing activity. Nearly 68% q-o-q decline
in net absorption was noted primarily due to
downsizingandrelocationsofafewselectcompanies.
94% of the leasing activity was in Grade A
developments, indicating tenants’ preference for
quality commercial spaces. In line with the past trend,
IT-ITeS sector accounted for more than 81% of the
transaction activity in 1Q 2014. Pre-commitments
(700,000 sf) recorded a q-o-q drop of nearly 19%, all
of which was concentrated in the peripheral
submarket of ORR (Sarjapur-Marathahalli) and were
committedbyIT-ITeSoccupiers.
Capital values for mid-end projects in North, East
and North-west submarkets are expected to
improve in the future periods due to a variety of
factors, including commencement of Hebbal-airport
expressway and metro rail along with existing
inherent demand from IT-ITeS population.
Due to continued high level of enquiries for small
and mid-sized spaces, office leasing activity is
expected to increase in the next quarter. Going
forward, rental values are anticipated to remain
stable due to significant pipeline of under
construction projects.
Outlook
Rentals for most of the malls are expected to
remain in a similar range during the future periods.
Also, most main streets are anticipated to witness
stability in rentals. Although prominent main streets
have been witnessing healthy enquiry levels, there is
a delay in deal closures. However, there might be a
downward pressure on rentals of main streets such
as Indiranagar, 100 Feet Road and MG Road owing to
non-availability of optimum sized spaces.
Under construction residential projects in the
Southern submarkets (Sarjapur Road, ORR,
Sarjapur-Marathahalli, etc.) witnessed q-o-q capital
value appreciation of upto 9% while projects in
Eastern (Whitefield, Old Madras Road, etc.) and the
Northern (Doddaballapur Road, Malleshwaram, etc.)
submarkets recorded q-o-q rise of upto 5%.
Sustained demand from IT-ITeS employees working
in nearby places led to price hike in Southern and
Eastern locations. Commencement of infrastructure
projects such as Hebbal-Airport expressway and
metro rail led to rise in prices at Northern locations.
Bren Celestia on Sarjapur Road and Rohan Jharoka-
Phase II on Old airport road are select residential
projects nearing completion as of 1Q 2014.
13

Market Overview
Chandigarh
The residential sector of the Tri-City depicted a
sluggish launch trend with no new units added in the
first quarter of 2014. Slow pace of construction also
resulted in no project being handed-over to the
buyers during this quarter. However, GMADA’s
(Greater Mohali Area Development Authority)
issuance of Letter of Intent (LoI) for allotment of
approximately 50 acres of land to Infosys improved
buyer interest in the adjoining submarkets of
Zirakpur and Mohali. Capital values remained
stagnant in the high-end segment with a marginal
decline in the mid-end segment from the previous
quarter.
Due to completion delay in many projects, the Tri-
City did not witness any new office space supply
addition in 1Q 2014. The demand for office space in the
Tri-CitywasprimarilydrivenbytheMediaandtheBFSI
sectors. The rentals of Grade A office space increased
byapproximately10%fromthepreviousquarter.
Approximately 1.1 msf of new mall space was added
to the Tri-City in the first quarter of 2014. As the
transaction activity was primarily concentrated in
main-street locations, mall vacancies increased. The
increase in mall vacancy was further fuelled by new
supply added to the market. During the quarter,
prominent main street locations of Sector 17, 20 and
35 witnessed healthy demand from apparel and F&B
retailers.
Trends And Updates
In 1Q 2014, demand for residential property
remained subdued across the Tri-City as expectations
of probable decline in capital values kept end-users at
bay. Due to the subdued transaction activity, the high-
end segment capital values in central Chandigarh
remained stable from the previous quarter. However,
the mid-end segment's capital values declined by 5-
10%inreadyproperties.
14
14,000
16,000
3,650
Marble Arch
Gilco Towers
Motia Heights
Orchard County
Pearls Group
ATS Gold Meadows
3,500 2,950 3,350 3,100
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0

Location
Chandigarh
Sector: 2-11
Chandigarh
Sector: 28
Panchkula
Manimajra
4Q 2012
160,000 -
180,000/sqyd
140,000 -
170,000/sqyd
110,000 -
145,000/sqyd
13,000/sf
1Q 2013
160,000 -
180,000/sqyd
140,000 -
170,000/sqyd
110,000 -
145,000/sqyd
13,000/sf
2Q 2013
160,000 -
180,000/sqyd
140,000 -
170,000/sqyd
110,000 -
145,000/sqyd
13,000/sf
1Q 2014
155,000 -
170,000/sqyd
140,000 -
160,000/sqyd
110,000 -
145,000/sqyd
14,000/sf
4Q 2013
155,000 -
170,000/sqyd
140,000 -
160,000/sqyd
110,000 -
145,000/sqyd
14,000/sf
3Q 2013
160,000 -
180,000/sqyd
140,000 -
170,000/sqyd
110,000 -
145,000/sqyd
13,000/sf
Average Capital Values - High-end segment (INR)
Note: The above values for high-end segment typically include units of 2,000-4,000 sf, both apartments and villa *sqyd: Square Yard
Location
Zirakpur
Mohali
Dera Bassi
Panchkula
4Q 2012
2,500 - 3,600
3,000 - 4,000
3,000 - 3,200
2,700 - 3,300
3Q 2013
2,500 - 3,600
3,000 - 4,000
3,000 - 3,200
2,700 - 3,300
1Q 2014
2,800 - 3,400
3,000 - 3,800
2,800 - 3,200
2,800 - 3,400
4Q 2013
2,800 - 3,600
3,200 - 4,000
3,000 - 3,200
2,800 - 3,500
2Q 2013
2,500 - 3,600
3,000 - 4,000
3,000 - 3,200
2,700 - 3,300
1Q 2013
2,500 - 3,600
3,000 - 4,000
3,000 - 3,200
2,700 - 3,300
Average Capital Values – Mid Range (INR/sf )
Note: The above values for mid-segment apartments typically include units of 1,600-2,000 sf
15
Mid-end Segment:
Mohali: Sectors - 114, 115, 127
Panchkula: Sector - 20
High-end Segment:
Panchkula: Sectors - 2, 4, 6, 7, 8, 9, 15
Key to Locations:
Due to significant unsold inventory and cautious
buyer sentiment, the Tri-City did not witness any
new launches in the first quarter of 2014. Also, no
new projects were “soft-launched” in this quarter as
developers focussed primarily on clearing existing
unsold inventory.
The Tri-City did not witness any project completions
duringthefirstquarterof2014.Moreover,capitalvalues
ofunder-constructionprojectsdeclinedby5-7%dueto
unsoldinventorypile-up.
Rental values of commercial office spaces in the
Tri-City improved q-o-q by nearly 10% during the
first quarter of 2014. This was primarily due to
demand generated from media, BFSI and
manufacturing companies. Quoted rentals for IT
Parks and SEZs was around INR 50-60 per square
feet per month (psf per month) and commercial
spaces was INR 70-90 psf per month.

Demand for retail spaces was noted primarily in
the main street locations with apparel and F&B
brands such as Louise Phillipe and Subway
strengthening their market presence in the Tri-City.
Retail space in malls was primarily taken up by the
Retail Sector
automobile sector with brands such as Volvo and
Land Rover opening stores in the city. New supply
addition led to increase in vacancy levels. Rental
values in malls maintained status quo at around INR
300 psf per month during the first quarter of 2014.
Due to subdued buyer interest, capital values are
likely to remain under pressure in the region during
the next quarter. With the new international terminal
at Mohali airport nearing completion, the adjoining
areas may witness increased interest from buyers.
Furthermore, with elections around the corner,
developers are pinning hopes on better sales during
the next quarter.
Demand for office space is expected to be stable
in the second quarter of 2014. More than 450,000 sf
of new office space is scheduled for completion in
the next quarter. Rentals are likely to remain stable
over the next quarter.
Outlook
Approximately 150,000 sf of new supply is likely
to be added in the Tri-City retail sector during the
second quarter of 2014. Although there is a steady
demand for quality retail spaces, significant supply
addition during this quarter led to higher vacancy.
As a result, the rentals are likely to remain stable
during the next quarter.
16

Trends And Updates
Prominent real estate developers such as Jain
Housing and Constructions, Land Marvel, Navin
Housing, KGEYES Residency and Vijay Shanthi
Builders handed over projects in locations such as
Kilpauk, Mylapore, Manapakkam, Besant Nagar and
GST Road. In 1Q 2014, 1,400 residential units were
completed, of which 77% belonged to the mid-end
segment, followed by 12% in the high-end segment.
Capital values largely remained stable for almost all
locations in Chennai. However, Poes Garden (high-
end segment) which is a prime residential location,
witnessed 6% q-o-q capital value appreciation due
to continued strong demand. Also, T.Nagar (mid-end
segment) witnessed 4% q-o-q capital value
appreciation due to high demand amongst end-
users for this central location, which is in proximity
to primary and secondary business centres.
Chennai
Market Overview
In 1Q 2014, 7,400 units were launched in the
Chennai residential real estate market, recording a
substantial increase from the previous quarter.
Locations such as Rajiv Gandhi Salai and Grand
Southern Trunk (GST) Road witnessed maximum
number of launches (51%) in 1Q 2014. Of the total
units launched, 90% were in the mid-end segment.
The high-end segment witnessed 37% q-o-q
increase in the number of launches; locations such
as Nungambakkam, Kotturpuram and Anna Nagar
accounted for majority of new units in this segment.
In 1Q 2014, overall leasing (all grades) in Chennai’s
office property market declined 26% on a q-o-q
basis and was recorded at 865,000 sf. Corporate
occupiers continued preference for Grade A spaces.
This was evident as 85% of leasing transactions
were concluded in such assets. However, significant
downsizing along with relocations reduced the net
absorption level, which was noted at 90,000 sf for
Grade A assets. 176,000 sf of supply across all
grades was infused into the market, of which only
18% was Grade A (in Suburban-South West
submarket). The overall vacancy rate in Chennai
dipped marginally by 0.1 percentage point and was
noted at 15.3%.
In 1Q 2014, Chennai’s retail market did not witness
any new mall supply addition. However, growing
demand for select shopping malls in Chennai-CBD
and Chennai-South led to a marginal q-o-q decline of
0.2 percentage points in mall vacancy and was noted
at 6.2%. However, enquiries from domestic retailers
of apparel, footwear and F&B remained high in these
sub-markets. Rentals for most high streets largely
remained stable during the quarter.
17
20,000
16,000
12,000
8,000
4,000
0
17,000
18,500
15,000
10,000
12,000
9,150
Appaswamy Midtown
Lancor Coral
Golden Altius
Newry Shreenidhi
True Value Homes Eden
Ceebros Boulevard

In 1Q 2014, 7,400 new residential units were
launched in Chennai, which is a substantial rise of
190% from the previous quarter. 44% of these units
were in large projects, in peripheral locations of
Kelambakkam, Perumbakkam and Padur in Rajiv
Gandhi Salai. Developers such as True Value Homes,
Adroit Urban Developers, Vijay Shanthi Builders,
Casa Grande and Voora Group were the key
developers of these projects. This quarter also
witnessed more than 120 unit launches in the luxury
segment in locations such as Kotturpuram and
Nungambakkam.
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
Location
Adyar
Average Capital Values – Mid Segment (INR ’000/sf)
Rajiv Gandhi
Salai (Perungudi)
Velachery
T. Nagar
Mylapore
Mogappair
Kilpauk
2009
4.5 - 6.5
2.5 - 2.8
3.5 - 4.0
4.0 - 6.5
NA
NA
4.5 - 6.0
2008
4.5 - 6.5
2.5 - 3.6
3.8 - 4.2
4.0 - 6.5
NA
NA
4.5 - 6.0
2010
6.0 - 8.5
3.5 - 4.5
3.5 - 5.0
7.5 - 10.5
NA
NA
6.0 - 8.0
2011
8.0 - 11.0
4.0 - 5.5
3.5 - 5.5
8.5 - 11.5
8.0 - 12.5
5.0 - 5.5
7.5 - 9.5
2012
9.0 - 13.0
5.0 - 6.3
4.5 - 6.5
8.5 - 14.0
10.0 - 15.0
5.0 - 6.5
9.0 - 12.0
10.0 - 14.0
5.0 - 6.3
6.0 - 8.0
10.0 - 16.0
12.0 - 17.0
5.0 - 7.5
9.0 - 12.0
1Q 2014
10.0 - 14.0
5.0 - 6.3
6.0 - 8.0
10.0 - 16.0
12.0 - 17.0
5.0 - 7.5
9.0 - 12.0
2013
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
Location 2008
18.0 - 24.0
13.0 - 15.0
NA
NA
5.5 - 10.0
14.5 - 20.0
13.0 - 16.0
6.0 - 9.0
4.0 - 8.0
Boat Club
R.A Puram*
Besant Nagar
Kotturpuram
Adyar
Poes Garden**
Nungambakkam
Anna Nagar
Kilpauk
2010
18.0 - 23.0
13.0 - 16.5
NA
NA
8.0 - 12.0
14.5 - 20.0
13.0 - 16.5
7.5 - 10.5
8.0 - 12.0
2009
18.0 - 20.0
13.0 - 15.0
NA
NA
5.5 - 9.5
14.5 - 18.0
13.0 - 16.0
6.0 - 9.0
4.0 - 8.0
2011
20.0 - 25.0
14.0 - 17.0
12.5 - 13.5
12.0 - 14.0
11.5 - 13.5
17.5 - 24.5
13.0 - 17.0
8.0 - 11.5
9.0 - 15.0
2013
23.0 - 33.0
17.0 - 23.0
13.5 - 15.0
14.0 - 20.0
14.0 - 17.5
20.5 - 28.0
14.0 - 25.0
12.0 - 17.0
12.0 - 16.0
2012
23.0 - 27.0
15.0 - 19.0
13.0 - 14.5
14.0 - 16.0
13.0 - 14.5
18.5 - 25.0
17.0 - 20.0
12.0 - 14.0
12.0 - 15.0
1Q 2014
23.0 - 33.0
17.0 - 23.0
13.5 - 15.0
14.0 - 20.0
14.0 - 17.5
20.5 - 33.0
14.0 - 25.0
12.0 - 17.0
12.0 - 16.0
Average Capital Values - High-End Segment (INR ‘000/sf)
18

Project Name Developer Location Number of Units* Type Area of Units (in sf)
VGN Hazel VGN Developers Avadi 781 Apartments 1 BHK: 570 to 578
2 BHK: 1,057 to 1,167
Eden Park - Phase II L&T Realty Siruseri, OMR 720 Apartments 1 BHK: 580
2 BHK: 1,100 to 1,135
3 BHK: 1,655 to 2,155
Santorini - Phase I Tata Value Homes Sriperumbudur 512 Apartments 1 BHK: 576
2 BHK: 855 to 1,008
3 BHK: 1,385 to 1,539
Vidyasagar Oswal
Garden - Phase II
ISP Infrastructure Pvt. Ltd.
(Voora Group)
Korukkpet 388 Apartments 2 BHK: 1,029
3 BHK: 1,281 to 1,634
4 BHK: 2019
Vasanthaa - II Arun Excello Padappai 388 Apartments 1 BHK: 375
Alexandriea ASV Constructions Before
Shollinganallur,
OMR
374 Apartments 3 BHK: 1,850
4 BHK: 2,750
The Terraces Unitech Vandalur 300 Apartments 3 BHK: 1,374
Ruby Landmark Ruby Builders Varadhararjpuram 298 Apartments 2 BHK: 1,101 to 1,141
3 BHK: 1,360 to 1,518
District S - Phase I Adroit Urban Developers Thalambur
Main Road
264 Apartments 1 BHK: 606 to 626
2 BHK: 922 to 978
3 BHK:1,254 to 1,278
Tiana Hiranandani Developers Egattur 262 Apartments 2 BHK: 975 to 1,205
3 BHK: 1,095 to 1,435
Purva Swanlake Sky
Condos Series
Puravankara Projects Ltd Kelambakkam 234 Apartments 2 BHK: 1,075 to 1,330
2.5 BHK: 1,539 to 1,579
3 BHK: 1,699 to 1,805
Pristine Acres -
Phase II
Plaza Group Perumbakkam 232 Apartments 1 BHK: 567 to 570
2 BHK: 910 to 973
3 BHK: 1,206 to 1,499
TVH Aura True Value Homes Padur, OMR 190 Apartments 2 BHK: 1,235 to 1,245
3 BHK: 1,447 to 1,525
Aldea Casa Grande Private
Limited
Thoraipakam 184 Apartments 1 BHK: 574 to 583
3 BHK: 1,423 to 1,695
4 BHK:1,919 to 1,986
Oceanique Altis Properties East Coast Road 180 Apartments 2 BHK: 1,252 to 1,255
3 BHK: 1,632 to 2,584
Ashraya BBCL Thoraipakkam 160 Apartments 2 BHK: 1,070 to 1,120
3 BHK: 1,110 to 1,480
Malles Aatmika Malles Constructions Mannivakkam 154 Apartments 2 BHK: 923
2.5 BHK: 1,120
3 BHK: 1,217 to 1,453
Daffodils Deva Constructions Potheri 152 Apartments 2 BHK: 982 to 1,112
3 BHK: 1,119 to 1,400
Suncity - Phase II Amarprakash Developers Tiruvallur 136 Apartments 1 BHK: 450 to 580
2 BHK: 650 to 725
BBCL Vajra BBCL Mogappair 134 Apartments 2 BHK: 1,306
3 BHK: 1,846 to 1,850
Shreyas Villas Sare Homes Singaperumalkoil 130 Villas 3 BHK: 2,316 to 2,616
Pavillion - Phase II Casa Grande Pvt. Ltd Thalambur 127 Apartments 3 BHK: 1,193 to 1,771
4 BHK: 2,325
Artistica Adroit Urban Shollinganallur 124 Apartments 3 BHK: 1,444 to 2,250
4 BHK: 2,500 to 4,700
Shriram OneCity Shriram Properties Valarpuram 118 Apartments 2 BHK: 1,032 to 1,048
3 BHK: 1,200
4 BHK: 1,555
19

Advaya Royal Splendour
Developers
Porur 81 Apartments 2 BHK: 715 to 1,130
3 BHK: 1,346 to 1,435
Royal Creek Raba Promoters (P) Ltd Mangadu Village 72 Apartments 2 BHK: 750 to 1,050
2.5 BHK: 1,120
3 BHK: 995 to 1,330
Euphoria Doshi Housing Perungudi 67 Apartments I BHK: 414 to 825
Pace Aagam Pace Builders Medavakkam 66 Apartments 2 BHK: 1,177 to 1,181
3 BHK: 1,632 to 1,847
VGN Imperia - Phase IV VGN Developers ML Nagar,
Velappanchavadi
64 Apartments 2 BHK: 986 to 1,077
3 BHK: 1,300 to 1,320
Vogue Casa Grande Pvt. Ltd Perumbakkam 56 Apartments 2 BHK: 1,218 to 1,271
3 BHK: 1,453 to 1,701
RKC Subrabath Raj Kishore Developers
Pvt. Ltd.
Kumaran Colony,
Vadapalani
48 Apartments 2 BHK: 1,100 to 1,394
3 BHK: 1,496 to 1,600
Park Residence Olympia Group Kotturpuram 32 Apartments 3 BHK: 2,766 to 3,047
4 BHK: 3,155 to 3,581
5 BHK: 5,137
Lantern's Court Casa Grande Private
Limited
Thoraipakkam 32 Apartments 3 BHK: 1,392 to 1,633
Firm's Tranquility Firm Foundations &
Housing
Velachery 32 Apartments 2 BHK: 1,055
3 BHK: 1,375
Matrix Mini P dot G Constructions Potheri 32 Apartments 2 BHK: 630 to 892
Athena Sreerosh Properties Nolambur,
Mogappair (W)
3 BHK: 1,405 to 1,630
The Art Vijay Shanthi Builders Nungambakkam 21 Apartments 4 BHK: 5,498 to 5,969
Galileo KGEYES Anna Nagar
(East)
Urbano - Phase II Casa Grande Pvt. Ltd. Ponmar, Near
Medavakkam
20 Apartments 3.5 BHK: 1,486 to 1,960
Celestyn - Phase II Jeyyes Housing Developers Perumbakkam 16 Apartments 1 BHK: 557
2 BHK: 786
3 BHK: 1,015 to 1,180
Ananya BBCL Five Furlong
Road, Velachery
Serenity Newry Properties Gandhi Nagar,
Adyar
I Sky Villas Vijay Shanthi Builders Corporation Rd,
Perungudi
Livia@Luz Church Livia Spaces Mylapore 12 Apartments 3 BHK: 3,200
4 BHK: 5,800
Rampon Flats Rampon Infratech Ram Nagar (S),
Madipakkam
3 BHK: 998 to 1,314
Amara Avana AR Group Nungambakkam 11 Apartments 4 BHK: 4,200
Ananta KG 5 Poes Garden 8 Apartments 3 BHK: 3,800 to 6,000
Navin's Sumathi Navin Housing Alandur 8 Apartments 3 BHK: 1,264
LCS Natraj LCS City Makers Pvt. Ltd. Shastri Nagar,
Adyar
Y Block Vishwakarma Properties Anna Nagar (W) 8 Apartments 2 BHK: 900 to 1,100
3 BHK: 1,250
Pleasant Agni Estates & Foundations Perungudi 8 Apartments 2 BHK: 1,132
Elite Newry Properties CathedralGarden
Road,Nungambakkam
Mayfair Newry Properties CBI Colony,
Perungudi
8 Apartments 2 BHK: 954 to 1,026
3 BHK: 1,518 to 1,556
20

Sirius Adroit Urban Developers T. Nagar 7 Apartments 3 BHK: 1,979 to 2,700
Carnation Newry Properties New Avadi Road,
Kilpauk
Aurum Atikramya Tambaram - West 6 Apartments 2 BHK: 1,005 to 1,056
Padmalaya India Builders Anna Nagar 6 Apartments 3 BHK: 1,461 to 1,492
Newry Daffodils Newry Properties Thiruvika 3rd
Street, Mylapore
6 Apartments 2 BHK:1,336
3 BHK: 1,784
Mithila Pushkar Properties Pvt. Ltd. Shenoy Nagar
East, Kilpauk
JBM Manas JBM Shelters Pvt. Ltd. Chrompet 6 Apartments 2 BHK: 812 to 1,008
Imperia Adroit Urban Developers Nungambakkam 5 Apartments 3 BHK: 2,375 to 2,670
4 BHK: 5,012 to 5,143
By The C Ceebros East Coast Road 4 Apartments 4 BHK: 3,650
Dhanalakshmi Sreenivas Housing Pvt. Ltd. Madipakkam 4 Apartments 2 BHK: 1,015 to 1,022
The Nest Pushkar Properties
Pvt. Ltd.
Anna Nagar 4 Apartments 3 BHK: 1,550
Bonsai Spero Spero Holdings Kotturpuram 3 Apartments 4 BHK: 2,850
Shiv Krish India Builders Anna Nagar (E) 3 Apartments 4 BHK: 2,775
Current market conditions remain subdued and this
continued to impact the end-user sentiment, leading to
a slower pace of construction activity in several micro
markets. More than 6,600 residential units scheduled
to complete in 1Q 2014 were not delivered and are
expected to be ready by 2Q 2014. However, due to end-
users’ interest in projects at final stages of completion,
prices of a few under-construction projects in Rajiv
Gandhi Salai, Besant Nagar and Velachery marginally
improvedfromthepreviousquarter.
Grade A spaces in Suburban-Rajiv Gandhi Salai
and Suburban-South West accounted for the
maximum share in net absorption. IT and IT-SEZ
buildings accounted for a major chunk of the leasing
activity for Grade A properties with an average
ticket size of 37,000 sf. IT-ITeS and Automobiles
sector accounted for 39% and 23%, respectively, of
the total gross absorption for Grade A assets. The
weighted average rentals depicted a marginal q-o-q
improvement of 2.5% primarily due to an increase in
net rentals for Peripheral-GST; only buildings with
higher rentals were currently vacant in this area.
In1Q2014,prevalentcautioussentimentsamongst
retailers prevented any upward bias in rentals for
most high streets of Chennai. However, q-o-q rentals
increased by 5% on Khadar Nawaz Khan Road due to
high retailer interest at this prime location. Some
Retail Sector
retailers in Velachery and Usman Road-North
preferred to relocate to nearby shopping malls due to
which, rentals at both these high streets witnessed a
q-o-qdeclineofaround3.6%.
21

More than 4,200 units are currently in the pre-
launch stage and are expected to be launched during
the next six months. Of these, 76% belonged to the
mid-end segment in locations such as Rajiv Gandhi
Salai and Suburban-South. The high-end segment is
likely to account for 17% of these proposed launches
with new units at Nungambakkam and Kotturpuram.
In addition, more than 6,100 units are likely to
complete during 2Q 2014, which will infuse
significant new supply in the market and might lead
to short-term stability in capital values.
In 2Q 2014, 566,000 sf new office space supply is
likely to be infused in Chennai, of which 490,000 is in
Grade A. This sizeable upcoming supply will mainly
be concentrated in Suburban-South West, CBD and
Peripheral-GST, which might increase the vacancy
levels in these micro markets and bear a negative
impact on 2Q 2014 weighted average rentals.
Outlook
No new mall supply is likely to be infused in 2Q
2014. Amongst high streets, only Khadar Nawaz
Khan Road might witness rental appreciation in 2Q
2014 owing to availability of quality retail premises
at this prime location. Limited availability of quality
mall spaces and high-level of enquiries from apparel,
electronics and footwear retailers might lead to an
improvement in Chennai-CBD and Chennai-South
rentals.
22

Market Overview
Hyderabad
In 1Q 2014, approximately 900 new residential
units were launched in Hyderabad, a q-o-q increase of
25%; mid-end and high-end segment accounted for
77% and 21%, respectively. The launches were
primarily concentrated in North-west quadrant of the
city in locations such as Gachibowli and Kompally.
Continued cautious buyer approach led to stability in
capital values from the previous quarter across most
micro-markets. The North-west quadrant of the city
continues to be the most active in terms of new
launches and construction activity. Approval delays
led to retention of many projects in the pre-launch
stages and are likely to be launched in the
subsequent quarters.
In 1Q 2014, Hyderabad office market witnessed
overall (all grades) office supply addition of more than
2.2 msf, of which Grade A spaces accounted for
around 98%. The quarter also witnessed pre-
commitments (primarily by IT-ITeS companies) of
around 588,000 sf in Grade A developments. First
quarter of 2014 witnessed office space leasing of 2.1
msf and net absorption of 1.8 msf, majorly
contributed by pre-commitments of 2012 and 2013.
Supply almost equivalent to net absorption for this
quarter kept the vacancy stable.
The first quarter of 2014 witnessed continued
interest amongst retailers for quality main street and
mall spaces. Due to deferment of a 200,000 sf mall
planned at Attapur, no new mall space was added in 1Q
2014. Moderate demand and supply kept the main
streetandmallrentalsstable.
Trends And Updates
Demand for ready residential property remained
moderate across the city. Continued cautious buyer
approach led to stability in capital values. However,
slight upward capital value movement of 2-4% was
recordedinMadhapurandGachibowliduetocontinued
demand from employees working in nearby IT-ITeS
offices.Completionofcertainphasesofafewprojectsin
Kukatpally and Gachibowli led to residential supply
additionsofnearly600unitsin1Q2014.
23
12,100
9,050 8,700
5,350 5,650 5,500
Aparna Orchid
Trendset Ville
Aditya Hill Paradise
Hill Ridge Springs
Aditya Swapnalok
Reliance Manor
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0

Banjara Hills
Jubilee Hills
Himayatnagar
West & East Marredpally
Begumpet, Somajiguda
Madhapur, Gachibowli
Kukatpally
Miyapur, Nizampet
Average Capital Values - Mid Segment (INR ‘000/sf)
Location 2009
2.4 - 2.9
1.8 - 2.5
3.6 - 4.2
3.5 - 4.0
2.7 - 3.0
2.5 - 2.8
2.6 - 3.1
2.5 - 3.1
2010
2.7 - 3.2
1.8 - 2.5
3.6 - 4.5
3.7 - 4.0
2.7 - 3.5
2.7 - 3.0
2.8 - 3.5
2.6 - 3.4
2011
2.9 - 3.5
2.4 - 3.0
3.8 - 4.6
4.0 - 4.2
2.7 - 3.7
2.8 - 3.2
2.9 - 3.6
2.8 - 3.5
2012
2.9 - 3.6
2.2 - 3.4
3.8 - 4.8
4.0 - 4.2
2.8 - 3.6
2.7 - 3.2
2.8 - 3.6
3.0 - 3.8
2013 1Q 2014
3.3 - 4.0
2.7 - 3.6
4.0 - 5.0
3.8 - 4.4
3.0 - 3.8
3.0 - 3.5
3.0 - 4.0
3.6 - 4.3
3.1 - 4.0
2.7 - 3.4
4.0 - 5.0
3.8 - 4.4
3.0 - 3.8
3.0 - 3.5
3.0 - 4.0
3.5 - 4.2
Note: The above values for high-end typically include units of 1,600-4,000 sf
Average Capital Values - High-end Segment (INR ‘000/sf)
Banjara Hills*
Jubilee Hills *
Himayatnagar
West & East Marredpally
Begumpet, Somajiguda
Madhapur, Gachibowli
Kukatpally
Miyapur, Nizampet
Location 2009
3.3 - 4.0
2.6 - 3.3
5.8 - 6.5
5.5 - 6.3
3.3 - 4.0
3.3 - 3.8
3.9 - 4.5
3.5 - 4.3
2010
3.5 - 4.5
2.7 - 3.4
6.0 - 7.2
6.0 - 7.0
3.7 - 4.0
3.5 - 4.0
4.1 - 4.5
3.8 - 4.9
2011
3.8 - 5.1
2.8 - 3.5
6.4 - 7.5
6.2 - 7.2
3.7 - 4.2
3.6 - 4.3
4.3 - 4.8
3.9 - 5.3
2012
3.8 - 5.1
2.9 - 3.5
6.5 - 7.5
6.1 - 7.2
3.6 - 4.2
3.6 - 4.3
4.3 - 4.7
4.1 - 5.3
2013 1Q 2014
4.0 - 6.0
2.9 - 3.5
7.0 - 9.5
6.5 - 9.5
4.0 - 5.5
4.0 - 5.5
4.5 - 5.5
4.5 - 6.0
4.0 - 6.0
2.9 - 3.5
7.0 - 9.5
6.5 - 9.5
4.0 - 5.5
4.0 - 5.5
4.5 - 5.5
4.5 - 6.0
First quarter of 2014 witnessed more than 900
residential unit launches, a 25% q-o-q increase.
Gachibowli, HITEC City, Chandanagar, Kondapur,
Velimella and Kompally accounted for majority of
the new launches during this quarter. Approximately
47% of the units launched were 3 BHKs whilst 32%
were 4 BHKs and the remaining were 2 BHKs. Mid-
end segment recorded the highest number of new
launches (77%), followed by 21% and 2% in the high-
end and affordable segments, respectively. Around
65% of the total launches were concentrated in
Madhapur, Gachibowli micro-market due to
persistent demand from employees working in the
nearby IT-ITeS offices and developing physical
infrastructure in the region.
24

Vertex Panache - Phase I Vertex Homes Gachibowli 338 Apartment 2 BHK: 1,265
3 BHK: 1,435 to 1,890
Ashoka A-La Mansion -
Phase II
Ashoka Developers and
Builders Ltd.
Kompally 200 Villas 3 BHK: 2,700 to 4,500
Vasantha City Vasantha Group HITEC City 197 Villas 4 BHK: 2,700 to 4,500
Tree Walk SVC Ventures Kondapur 128 Apartment 3 BHK: 1,622 to 2,052
Orchid Avenue Vitus Infrastructure Velimella 52 Villas 3 BHK: 1,855
Maruti Fortune Lucid Constructions Chandanagar 15 Apartment 2 BHK: 1,000 to 1,150
25
Capital values of under construction properties in
Madhapur, Gachibowli, Miyapur, Kukatpally and
Tellapur appreciated around 1-4% from the previous
quarter. This increase was primarily due to proximity
of workspaces from these locations and burgeoning
physical infrastructure. However, prices of under
construction projects in other parts of the city
remained stable from the previous quarter due to
subdued market sentiments. Construction delays also
led to completion deferment of many projects in
Gachibowli,MadhapurandKukatpally
In 1Q 2014, Hyderabad’s office market witnessed
an influx of 2.2 msf, 98% of which were Grade A
spaces. IT-SEZ space addition continued to remain
high in 1Q 2014 and was in-line to the previous
quarter. The leasing activity in this quarter was 2.1
msf, of which largely 54% was pre-committed in
2012 and 2013. Approximately 77% of the leasing
activity in 1Q 2014 was concentrated in Madhapur
micro market, on the back of significant pre-
commitments of 2012 and 2013. Grade A vacancy
marginally increased due to supply slightly
exceeding absorption. However, absorption
exceeded supply for All Grade properties leading to a
slight dip in vacancy level. Rentals largely remained
stable in this quarter.
The main street and mall rentals across the city
remained stable in 1Q 2014 as compared to the
previous quarter. Apparel, sportswear, telecom and
F&B retailers took up space in prominent main
streets such as A.S. Rao Nagar and Jubilee Hills.
Retail Sector
Although enquiries remained high in areas such as
Banjara Hills Road No. 2, lack of apt-sized space
affected the transactions. Deferment of 200,000 sf
mall supply at Attapur, due to delay in approval, led
to a marginal decline in vacancy.

Cautious buyer approach is likely to result in
moderate demand and stable rentals (for the next 3-6
months) in the residential real estate market.
However, select micro-markets such as Madhapur,
Gachibowli, Kukatpally and Miyapur are likely to
witness marginal capital value appreciation in the
mid-end segment, primarily due to interest generated
from employees working in the nearby IT-ITeS and
BFSI offices. The North-west quadrant of the city is
likely to witness robust launches in the next quarter
with approximately 1,500 units already in the pre-
launch stages.
During the next quarter, approximately 3 msf of
office space is expected to become operational, of
which nearly 50% is Grade A development. As
majority of this Grade A spaces are already pre-
committed, the vacancy levels for these
developments are likely to remain stable in the future
periods.
Outlook
Approximately 500,000 sf of mall space influx at
Kukatpally is likely to increase the overall city-level
vacancy in the short-term. Demand for both main
street and mall spaces is anticipated to remain stable
due to decent enquiries witnessed in this quarter.
Stable supply and demand are likely to result in
stagnation of main street rentals. However, mall
rentals might remain under pressure due to
substantialinfluxofnewspaceinthenextquarter.
26

Market Overview
Jaipur
With the change of regime in the state
government, Jaipur residential real estate sector
depicted mixed trends with prices increasing in
January 2014 and then normalizing towards the end
of 1Q 2014. In this quarter, more than 1,500 units
were launched primarily in the mid-segment.
Developers continued to launch projects in
peripheral areas such as Mansarovar, Jagatpura,
Ajmer road and Vidyadhar Nagar. These regions and
a few areas in proximity to the Mahindra SEZ
witnessed high buyer interest with capital values
increasing by 8-10% from the last quarter.
In 1Q 2014, around 100,000 sf supply was added to
the Jaipur office sector. Compared to the previous
quarter, there was a decline in office space demand
with no significant deals recorded in this quarter. The
rentals remained stable from the previous quarter
across major locations in the city.
As mall space scheduled for completion during 1Q
2014 was deferred, the city did not witness any new
supply addition. Continuing with the trend witnessed
in the previous quarters, transaction activity in the
city was primarily in the main street locations of
Mirza Ismail (MI) Road, Vaishali Nagar and Malviya
Nagar. Rental values remained stable both in malls
and main-street locations from the previous quarter.
Trends And Updates
In 1Q 2014, central submarkets of Jaipur such as
C-scheme, Swage Farm and Bani Park witnessed
continued interest from end-users. Stable demand in
the central submarkets led to capital values
appreciating by 5-6% from the previous quarter. In
1Q 2014, the mid-end segment witnessed quarterly
capital appreciation of 8-12%.
27
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
7,500
7,000
6,200
4,500
3,300
2,700
Grand Geejgarh
Kalpvriksha
Anukampa Grandeur
The Royal Paradise
Mahima Panorama
Hanging Gardens

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 Capital Values – High End (INR ‘000/sf)
Location
C- Scheme
Bapu Nagar
Civil Lines
Malviya Nagar
3Q 2013
7,000 - 9,000 /sf
6,500 - 7,500 /sf
80,000 - 95,000 /sqyd*
70,000 - 80,000 /sqyd
1Q 2014
8,000 - 10,500 /sf
7,000 - 9,000 /sf
80,000 - 100,000 /sqyd*
75,000 - 95,000 /sqyd
4Q 2013
7,500 - 10,000 /sf
7,000 - 8,000 /sf
80,000 - 100,000 /sqyd
75,000 - 90,000 /sqyd
Average Capital Values - High-end segment (INR)
Note: The above values for mid-segment apartments typically include units of 1,600-2,000 sf, both apartments and villas
*sqyd: Square Yard
Location
Malviya Nagar
Vaishali Nagar
Mansarovar
Jagatpura
3Q 2013
55,000 - 65,000 /sqyd
2,700 - 3,000 /sf
2,700 - 3,000 /sf
2,650 - 2,900 /sf
1Q 2014
60,000 - 75,000 /sqyd
2,900 - 3,300 /sf
3,000 - 3,400 /sf
2,900 - 3,200 /sf
4Q 2013
60,000 - 70,000 /sqyd
2,700 - 3,100 /sf
2,800 - 3,200 /sf
2,800 - 3,000 /sf
Average Capital Values – Mid Segment (INR ‘000/sf)
The largest supply in Jaipur during 1Q 2014 was
from residential plots in Jaisinghpura close to Ajmer
road, being developed by the Jaipur Development
Authority. This scheme (Anand Vihar) is proposed to
be developed on 250 bigha of land with more than
1,500 plots. Developers launched nearly 1,500 units
in the first quarter of 2014 in peripheral submarkets
of Jaipur such as Mansarovar, Jagatpura and Ajmer
Road. The new launches were mainly in the mid-
segment priced around INR 2,200-3,200/sf.
Vedanta Ashadeep Group Jagatpura 670 Apartment
Apartment
Apartment
Apartment
2 BHK: 1,308 to 1,318
3 BHK: 1,803 to 2,136
4 BHK: 2,638
Unique Joy Unique Builders Jagatpura 270 Studio: 420
1 BHK: 616 to 730
2 BHK: 1,090 to 1,363
Pinnacle Anukampa Group Mansarovar 250 2 BHK: 1,020 to 1,260
3 BHK: 1,425 to 2,170
Siddha Aaangan Phase II Siddha Group Ajmer Road 240 Apartment 2 BHK: 1,040 to 1,094
3 BHK: 1,330 to 1,500
Midas Touch Mojika Real Estate and
Developers
Vidyadhar Nagar 148 2 BHK: 1,100 to 1,211
3 BHK: 1,496 to 1,760
4 BHK: 2,293
28

The first quarter of 2014 witnessed steady
construction activity in peripheral areas of Tonk
Road, Ajmer Road and Sirsi Road. A number of
affordable and mid-end segment projects in these
areas started giving possession in this quarter.
Approximately 1,200 units in nearly 10 projects were
handed-over during this period.
Jaipur witnessed nearly 100,000 sf of office
supply addition in the first quarter of 2014. The
supply was added in proximity to JLN (Jawahar Lal
Nehru) Marg. The rental values in the Central
Business District (CBD) of MI Road and C-Scheme
remained stagnant from the previous quarter at INR
65 psf per month and for Secondary Business
District (SBD) at INR 35-50 psf per month.
Demand for retail space in malls was primarily
driven by BFSI, F&B and apparel segment in the first
quarter of 2014. Brands such as Pizza Hut, John
Player, Titan continued to strengthen their presence
by opening new stores in the city. Demand in the
Retail Sector
main street locations was driven by Lifestyle brands
such as Adidas besides apparel brands such as Lee
and Wrangler. In 1Q 2014, rentals remained stable in
malls as well as main street locations.
Capital values in the Jaipur residential sector are
likely to appreciate in the next quarter both in
central as well as peripheral locations. With space in
the Mahindra SEZ being taken up by IT-ITeS
companies, residential demand around this location
is likely to increase. Work on 9.2 km metro
connecting Mansaorvar to Chandpole via Civil Lines
is expected to complete soon and a part of this route
is expected be operational towards the end of next
quarter. This is likely to increase buyer interest for
projects in Mansarovar, Shyam Nagar and Ajmer
Road.
No new office space is likely to be added in Jaipur
during the next quarter. Rental values are expected
to remain stable as vacancies are quite high in
recently added stock in Malviya Nagar submarket.
Outlook
Overall city-level vacancy is expected to remain
range-bound as demand is likely to pick up only after
the elections.
Demand for quality retail space is likely to remain
stable especially in prominent main street locations
of MI Road and select malls such as MGF
Metropolitan, Elements and Gaurav Towers. With no
new mall supply expected to be added in the next
quarter, vacancy in both malls and main street
locations are expected to decline over the next
quarter. As a result, rentals are likely to improve in
certain locations of the city.
29

Market Overview
Kolkata
Kolkata residential real estate sector witnessed
substantial increase in new unit launches during 1Q
2014. Around 6,700 units were launched, which is
almost 3.5 times the number of new launches in
previous quarter. This quarter also witnessed a
marginal demand uptick in a few submarkets
compared to the previous quarter. However, capital
values remained stable during the quarter across
micro-markets in both mid and high-end segments.
During 1Q 2014, Kolkata’s commercial office
sector witnessed total supply addition of 72,500 sf, a
significant q-o-q decline of 90% owing to
deferments and slow pace of construction. Net
absorption also declined by about 62% on q-o-q
basis and was recorded at 156,700 sf. The average
deal size also decreased from 5,300 sf to 4,400 sf
due to lack of large-ticket deals. Overall vacancy
levels dropped marginally by about 0.4 percentage
points and were noted at 32.4% in 1Q 2014. Weighted
average rentals remained stable across submarkets
owing to low leasing activity.
In 1Q 2014, Kolkata’s retail sector witnessed
healthy leasing activity from apparel, accessories
and F&B segments, wherein malls witnessed more
demand than the main streets. No new mall supply
was added to the Kolkata retail market in 1Q 2014,
leading to the total mall stock remaining stagnant at
3.7 msf. Overall vacancy level in malls dropped to
3.6% due to healthy leasing activity and lack of new
mall supply. Rentals remained stable during the
quarter across main streets as well as malls.
Trends And Updates
During 1Q 2014, transaction activity in the mid-end
segment of ready residential properties improved
from the previous quarter. However, transaction
activity in the high-end segment did not witness any
momentum owing to subdued demand. The capital
values remained stable during the quarter across
submarkets in mid-and-high-end segments. However,
select projects in the mid-end segment of North-east
submarket that were completed during the quarter
witnessed minor q-o-q capital value appreciation of
about 3%. Around 3,000 units were completed in 1Q
2014, of which around 60% catered to the mid-end
segment while 30% catered to the high-end segment.
Similar to previous quarter, in 1Q 2014 nearly 52% of
the completed projects were concentrated in the
North-east submarket. Some of the prominent
projects that were completed in 1Q 2014 include Sri
Avani (a luxury project located in prime South Central
submarket) and Cascades (part of Uniworld City
locatedinNorth-eastsubmarket).
11,800
10,750
12,600
7,650
6,400 5,800
Mani Karn
Silver Springs
South City
Ujjwala
Green wood Sonata
Utsa
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
30

High End Segment:
South: Southern Avenue, Hindustan Park, Triangular
Park, Lake Terrace.
South Central: Ballygunge, Queens Park, Rainy Park,
Gurusaday Road, Ballyguange Circular Road, Dover Lane.
South-East: EM Bypass - Science City, Christopher Road,
Pancha Sayar.
South-West: Alipore Park Road, Ashoka Road, Burdwan
Road, Belvedere Road.
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
Mid-Segment:
South: Golf Green, Tollygunge, Lake Gardens, Jodhpur
Park.
South Central: Deshpriya Park, Hazra Road, Bhawanipur
South-East: Ajoy Nagar, Hiland Park, PA Shah
Connector
North-East: Rajarhat, Rajarhat Chowmatha
South West: Tollyguange Circular Road, New Alipore,
Behala
North: Jessore Road, Ultadanga, Shyambazar, Bagbazar,
Girish Park, Manicktala, Dum Dum.
Key to Locations:Key to Locations:
*The values for North-East micro market have been revised due to increased market coverage
Average Capital Values – Mid Segment (INR ‘000/sf)
Location
South
South - Central
South - East
North - East
North
2009
2.7 - 3.9
4.2 - 5.3
2.4 - 2.8
1.9 - 2.2
1.8 - 3.4
2010
3.2 - 4.5
4.5 - 6.0
2.5 - 3.2
2.2 - 2.7
2.2 - 4.7
2011
3.8 - 5.5
5.5 - 8.0
2.8 - 4.5
2.4 - 3.0
2.8 - 5.2
2012
3.8 - 5.5
5.5 - 8.0
2.8 - 4.5
2.4 - 3.5
2.8 - 5.2
2013
3.8 - 6.5
5.8 - 8.8
2.9 - 5.0
2.7 - 4.0
3.0 - 5.8
1Q 2013
3.8 - 6.5
5.8 - 8.8
2.9 - 5.0
2.7 - 4.0
3.0 - 5.8
Average Capital Values -Mid-Segment (INR ‘000/sf)
*The values for Central, East and North-East micro markets have been revised due to increased market coverage.
East
North - East
Location
South
South - Central
South - East
South - West
Central
4.0 - 5.2
3.0 - 4.0
2009
4.8 - 5.9
8.5 - 9.6
4.5 - 5.7
8.6 - 9.8
7.2 - 10.0
4.5 - 6.0
3.5 - 5.0
2011
6.3 - 8.5
10.0 - 18.0
5.8 - 9.2
10.0 - 15.0
9.0 - 15.0
4.5 - 6.8
3.8 - 5.7
2012
7.0 - 12.0
10.0 - 18.0
5.8 - 9.5
10.0 - 15.0
10.0 - 17.0
5.0 - 7.7
4.2 - 6.5
2013
7.5 - 13.0
12.5 - 18.5
6.0 - 10.5
12.0 - 17.0
12.0 - 19.5
5.0 - 7.7
4.2 - 6.5
1Q 2014
7.5 - 13.0
12.5 - 18.5
6.0 - 11.0
12.0 - 17.0
12.0 - 19.5
Average Capital Values - High-end Segment (INR ‘000/sf)
Location
4.0 - 5.5
3.2 - 4.5
2010
5.3 - 6.8
9.5 - 13.0
4.5 - 8.0
8.9 - 13.0
8.0 - 12.5
2010
31

In 1Q 2014, around 6,700 residential units were
launched in Kolkata, 3.5 times the number of units
launched in the previous quarter. This was primarily
due to a few high-density affordable and mid-end
projects launched in southern peripheral locations
such as Joka and Maheshtala. These projects
contributedalmost70%tothetotalnewunitlaunches
during the quarter. In 1Q 2014, affordable segment
overall accounted for 57% of total new unit launches
followed by the mid-end segment with 40% share.
This quarter witnessed launch of a theme-based
project in collaboration with Disney UTV, which is first
ofitskindintheregion.
Hiland Green Hiland Group Maheshtala 3,817 Apartments 2 BHK: 712
The County - Phase I Team Taurus Joka 850 Apartments 1 BHK: 869
2 BHK: 919 to 1,053
3 BHK: 1,253
Ivy Green Vedic Realty Vedic Village,
Rajarhat
3 BHK: 1,174 to 1,274
North Grande Mounthill Realty Belghoria 474 Apartments 2 BHK: 1,022
3 BHK: 1,231 to 1,903
4 BHK: 2,311
Merlin Paradise Merlin Group Dum Dum 264 Apartments 2 BHK: 960
3 BHK: 1,365 to 1,663
4 BHK: 1,888
Ideal Aquaview
(Tower A, B)
Ideal Group Maheshbathan,
New town
3 BHK: 1,475 to 1,510
4 BHK: 1,950
Eternia Unimark Group &
Concast Group
EM Bypass 104 Apartments 3 BHK: 2,398 to 2,573
4 BHK: 2,857 to 3,297
Rohit Apartments Parasrampuria Realty VIP Road 80 Apartments 2 BHK: 977 to 1,159
3 BHK: 1,431 to 1,530
GoldwinGanpatiSharnam Goldwin & Ganpati
Group
Kaikhali 72 Apartments 2 BHK: 964 to 1,083
3 BHK: 1,045 to 1,114
Ideal Heights: Ph II
(Cirrus)
Ideal Group Sealdah 60 Apartments 2 BHK: 1,330 to 1,355
3 BHK: 1,715 to 1,995
Yahvi A. Sarkar & Associates Joka 46 Apartments 2 BHK: 993
3 BHK: 1,165 to 1,195
Curiocity Realtech Nirman Rajarhat 44 Apartments 2 BHK: 996 to 1,018
3 BHK: 1,398 to 1,502
The Address PS Group EM Bypass 40 Independent
Floors
3 BHK: 2,440 to 2,486
4 BHK: 2,688 to 2,734
Ivory Tower Shrishti Comotrade Kudghat Metro 39 Apartments 2 BHK: 1,387
3 BHK: 1,556 to 1,656
Inia JC Infratech Park Circus
Connector
4 BHK: 4,300
5 BHK: 4,630
Fort Rejoice Fort Group Behala 24 Apartments 3 BHK: 1,555
Florenza Vinayak Group Diamond Harbour
Road
4 BHK: 2,100
Sukhmani Imperia Sukhmani Developer Diamond Harbour
Road
Euphoria Multicon Ballygunge 15 Apartments 4 BHK: 5,000
32

In1Q 2014,capital valueslargelyremained stable in
both mid and high-end segments across most
submarkets. Most of the developers kept prices stable
to garner sales in the current subdued environment.
However, select projects in north, north-east and
south-east submarkets witnessed around 3-5% q-o-q
capital value appreciation. The construction activity
picked up pace during the quarter and nearly 2,100
units are likely to be completed in Q2 2014; majority of
this upcoming supply will cater to the mid-end
segment. North-east submarket would continue to
see maximum number of project completions as lot of
projects have been launched in last couple of years.
Some of the prominent projects that are nearing
completion include Promenade and Orbit Royale in
primesouthcentralandsouthwestsubmarkets.
The commercial office sector witnessed total
supply addition of 72,500 sf, a q-o-q decline of about
90%. 1Q 2014 did not witness any new Grade A
supply addition due to slow pace of project
construction in Salt Lake and Rajarhat micro-
markets, which together constitutes majority of
Grade A stock in Kolkata. Net absorption also
declined by about 62% on q-o-q basis and was noted
at 156,700 sf. Average deal size in Q1 2014 fell to
4,400 sf as against 5,300 sf in the preceding
quarter. IT-ITeS sector continued to witness highest
share (50%) in total net absorption, followed by
BFSI and Consulting sectors together accounting
for nearly 20%. The overall quarterly vacancy
dropped marginally by about 0.4 percentage points,
primarily due to lower supply infusion than net
absorption in this quarter. Weighted average rentals
remained stable across micro-markets owing to low
leasing activity.
During 1Q 2014, no new mall supply was added to
the Kolkata retail sector, leading to total mall stock
remaining unchanged at 3.7 msf. The malls in Central
location (Elgin Road) and East Kolkata (EM Bypass)
witnessed healthy leasing activity from F&B and
apparel retailers. Lack of new mall supply and
healthy leasing activity in a few malls led to a q-o-q
decline of 0.3 percentage point in vacancy level,
which was noted at 3.6% at the end of 1Q 2014. Main
street locations witnessed negligible transactions
despite demand from apparel, accessories and F&B
retailers due to lack of quality retail space on the
main streets. This in turn benefited the mall leasing
activity during 1Q 2014.
Retail Sector
In 1Q 2014, rentals remained stable during the
quarter in both main streets and malls. Also, a few
locations having retail space availability did not
witness significant leasing activity due to lack of apt
catchment area to attract shoppers towards these
locations.
33

Outlook
North-east submarket along with peripheral
locations such as Narendrapur, Sonarpur and Joka in
South and Madhyamgram and BT Road in North are
expected to witness majority of new launches in 2Q
2014. Demand in the mid-end segment may further
improve in the upcoming quarter, post general
elections and establishment of a stable government.
However, capital values are expected to remain
stable across most submarkets with minor
appreciation in the north-east region owing to
continued demand.
Kolkata office space sector is expected to witness
supply infusion of around 1.8 msf in 2Q 2014,
majority of which was supposed to have been added
during 1Q 2014 but got deferred due to slow pace of
construction. Net absorption is expected to improve
considering current pre-commitment levels. Overall
vacancy is expected to remain high due to
anticipated supply addition. Weighted average
rentals are expected to remain stable with slight
downward pressure in Salt Lake micromarket, owing
to existing high vacancy levels and likely new supply
addition.
In 2Q 2014, new mall supply of about 120,000 sf is
likely to be added to the south Kolkata retail market.
Retailers are likely to depict a higher preference for
malls over main streets primarily due to lack of
quality retail spaces on the main streets. The
upcoming quarter might witness leasing of a few
premium and upscale apparel brands. In 2Q 2014,
rentals are expected to remain stable across both
main streets and malls.
34

MARKET OVERVIEW
Mumbai
In 1Q 2014, around 10,700 new residential units
were launched in Mumbai, which is double the
number of the previous quarter. This substantial
increase was primarily due to the launch of new
phase in a large township project located on the
outskirts of city. This project received healthy
response from the market due to its lower ticket size
offerings. New launches in the quarter were
concentrated in the sub-markets of Dombivli (56%),
Western Suburbs (15%), Thane (15%) and Central
Suburbs (19%). In 1Q 2014, capital values remained
stable across sub-markets due to the subdued
demand and new launches at competitive prices.
Mumbai’s commercial office sector witnessed an
overall net absorption of approximately 750,000 sf
during the first quarter of 2014, a q-o-q decline of
35%. Majority of the net-absorption was in Grade A
developments concentrated in the sub-markets of
Thane-Belapur Road (29%), Lower Parel (29%),
Central Suburbs (19%) and Vashi (10%). Office space
demand was primarily driven by the IT-ITeS (48%),
E n g i n e e r i n g ( 3 0 % ) , B F S I ( 1 6 % ) a n d
Pharmaceuticals (4%) sectors. Lower demand in the
CBD resulted in the weighted average rental decline
of 3.7% from the previous quarter.
Retailers’ demand for space in malls and main-
streets remained stable during the first quarter of
2014. Demand from the apparel segment was high,
especially in Lower Parel, resulting in mall rentals
increasing by 4% during the quarter. Due to stable
demand, mall rentals in other suburban locations
such as Andheri, Malad, Goregaon, Ghatkopar,
Thane and Vashi remained stable from the previous
quarter. Overall mall vacancies also remained
unchanged and were noted at 15.3% for 1Q 2014.
Demand for spaces on main-street locations was
driven by the F&B and apparel sectors. However,
stable demand resulted in landlords quoting similar
rentals from the previous quarter across all major
sub-markets.
TRENDS AND UPDATES
With low demand levels, capital values of ready
residential properties continued to remain stable
during the quarter. Even in submarkets with healthy
supply and continued end-user demand such as
Thane and Navi Mumbai, capital values remained
stable during the quarter. With a number of under-
construction projects facing completion delays, end-
users preferred ready projects over under
construction properties.
35
Planet Godrej
Ashok Towers
Summer Trinity
Orchard Residency
Rustomjee Athena
Godrej Riverside
50,000
46,000
44,000
14,000
9,800
6,000
50,000
40,000
30,000
20,000
10,000
0

Source- Cushman and Wakefield Research
Note: The above values for high-end segment typically include units of 2,500-6,000 sf for South, South-Central, Central and North and units of 1,650-3,000 sf
for North (Santacruz & Juhu), Far North and North-East
South
South Central
Central
North
Far North
North East
Location 2008
43.0 - 55.0
47.0 - 67.0
27.0 - 31.0
9.0 - 13.0
33.0 - 53.0
14.0 - 18.0
34.0 - 55.0
10.0 - 16.0
42.5 - 58.0
42.0 - 66.0
22.0 - 30.0
10.0 - 16.5
2009
35.0 - 55.0
10.0 - 16.0
43.0 - 60.0
45.0 - 70.0
24.0 - 32.0
11.0 - 16.5
2010
48.0 - 70.0
46.0 - 78.0
34.0 - 58.0
28.0 - 40.0
12.5 - 18.0
14.0 - 22.0
2012
48.0 - 75.0
46.0 - 83.0
27.0 - 65.0
28.0 - 48.0
12.5 - 18.0
15.0 - 22.0
1Q 2014
48.0 - 75.0
46.0 - 83.0
27.0 - 65.0
28.0 - 48.0
12.5 - 18.0
15.0 - 22.0
2013
32.0 - 54.0
10.0 - 18.0
45.0 - 65.0
45.0 - 75.0
24.0 - 32.0
11.0 - 16.5
2011
Average Capital Values -High-end Segment (INR ‘000/sf)
South
South Central
Central
North
Far North
North East
Location 2008
27.0 - 34.0
34.0 - 43.0
13.5 - 19.5
7.0 - 9.0
18.0 - 28.0
6.0 - 7.4
15.0 - 26.0
6.4 - 8.5
28.0 - 37.0
35.0 - 45.0
16.0 - 24.0
8.5 - 11.5
2009
17.0 - 30.0
6.5 - 8.5
30.0 - 40.0
40.0 - 48.0
16.0 - 25.0
9.0 - 12.0
2010
35.0 - 45.0
43.0 - 52.0
22.0 - 37.0
18.0 - 27.0
10.0 - 14.0
8.5 - 12.5
2012
40.0 - 50.0
45.0 - 58.0
23.0 - 40.0
20.0 - 30.0
10.0 - 14.0
8.5 - 12.5
1Q 2014
40.0 - 50.0
45.0 - 58.0
23.0 - 40.0
20.0 - 30.0
10.0 - 14.0
8.5 - 12.5
2013
17.0 - 35.0
6.5 - 10.0
30.0 - 40.0
43.0 - 52.0
16.0 - 25.0
9.0 - 13.0
2011
Average Capital Values – Mid Segment (INR'000/sf)
Note: The above values for mid-end 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
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
Key to Locations:
36

Approximately 10,700 units were launched in 1Q
2014, which is close to double the previous quarter.
Mid-end segment accounted for about 67% of the
total units launched in the quarter whilst high-end
segment contributed 33%. New residential launches
during the quarter were concentrated in Dombivli
(56%), Western Suburbs (15%), Thane (15%) and
Central Suburbs (19%). Launches in the Western
Suburbs were concentrated between Goregaon-
Kandivali whilst in the Central Suburbs were located
at Chembur and Mulund. Thane also witnessed a few
launches at Kolshet and along the Ghodbunder road.
Lakeshore Greens Lodha Developers Dombivli 6,000 Apartment 1 BHK: 729 to 774
2 BHK: 927 to 1,026
3 BHK: 1,197
Ariisto Siesta Ariisto Realty Mulund 576 Apartment 2 BHK: 1,310 to 1,335
3 BHK: 1,715 to 1,925
Eastern Heights Satara Properties Chembur 480 Apartment 1 BHK: 367
1.5 BHK: 442
2 BHK: 503
BBJ Worldwide Roma BBJ Worldwide Andheri 432 Apartment 2 BHK: 1,095
3 BHK: 1,580
Rajesh Whitecity Rajesh Lifespaces Kandivali 416 Apartment 1 BHK: 745
2 BHK: 980
3 BHK: 2,015
4 BHK: 2,685
Rajesh Tattva Rajesh Lifespaces Thane 368 Apartment 3 BHK: 1,935
4 BHK: 2,985
Runwal Eirene Runwal Developers Thane 304 Apartment 1 BHK: 620
2 BHK: 830 to 1,075
2.5 BHK: 1,335
3 BHK: 1,510 to 1,535
Raheja Ridgewood Raheja Universal Goregaon 262 Apartment 1.5 BHK: 690
2 BHK: 1,274
3 BHK: 1,663 to 1,742
4 BHK: 2,232 to 2,465
La Riveria Lakhani Builders Panvel 234 Apartment 1 BHK: 640 to 720
2 BHK: 1,000 to 1,135
Omkar Ananta Omkar Developers Goregaon 221 Apartment 2 BHK: 1,050
Rosa Neo Orbis Rosa Group Thane 192 Apartment 2 BHK: 960
Acme Ozone - Phase 2
(Alpinia)
Acme Developers Thane 180 Apartment 2 BHK: 1,066
3 BHK: 1,318
Unique Vistas Unique Shanti
Developers
Thane 176 Apartment 2 BHK: 1,250
Acme Ozone - Phase 2
(Herbelia
Acme Developers Thane 108 Apartment 3 BHK: 1,482
Puranik Hometown
Smart Homes
Puranik Developers Thane 100 Apartment 2 BHK: 715
3 BHK: 957
Neona K Hemani Developers Mulund 90 Apartment 1 BHK: 850
2 BHK: 1,190
Tridhaatu Harsh
Aangan
Tridhaatu Princecare
Group
Chembur 80 Apartment 2 BHK: 743
2.5 BHK: 881
White Orchid Kamala Landmarc Kandivali 80 Apartment 1 BHK: 725
2 BHK: 1,110
Marina Shree Tirupati Group Thane 80 Apartment 1 BHK: 695
2 BHK: 1,060
Iris Hubtown Developers Mira Road 77 Apartment 1 BHK: 795
2 BHK: 945
37

38
Rosa Oasis - Phase 2 Rosa Group Thane 68 Apartment 2 BHK: 950 to 985
Pashmina Lotus Pashmina Developers Andheri 60 Apartment 4 BHK: 2,350 to 2,400
Celeste Hubtown Developers Worli 60 Apartment 1 BHK: 724
2 BHK: 1,048
Raheja Reflections
Odessy
K. Raheja Universal
Pvt. Ltd
Kandivali 54 Apartment 4 BHK: 3,454
In 1Q 2014, Mumbai witnessed an overall office
space supply addition of 1.1 msf, 70% of which was in
Grade A developments. Overall supply increased by
21% from the previous quarter and was
concentrated in the sub-markets of Vashi (34%),
Lower Parel (24%) and Kanjurmarg (24%). With a
few companies deferring plans to take-up new space,
there was a decline in net-absorption during 1Q 2014.
With similar levels of supply and net-absorption in
Grade A developments, q-o-q vacancy declined
marginally to 19.7%. Rentals at all sub-markets
remained stable during the quarter except CBD,
which witnessed a decline due to lower demand.
Attractive rentals at Thane-Belapur road resulted in
pre-commitments of approximately 450,000 sf
during the quarter.
Westernandcentralsuburbanlocationswitnessed
healthy construction activity during the quarter. With
new launches at attractive prices, capital values in
under construction projects remained stable during
the quarter. A few developers also offered attractive
discounts in the high-end segment under
constructionprojects.
Retail Sector
Main street locations in Colaba, Andheri (West)
and Borivali continued to witness high level of enquiry
from F&B retailers. Limited availability of quality
spaces remains a concern especially in mature main-
streets such as Colaba, Breach Candy and Borivali.
With limited transactions and churn, rentals remained
stable across main-street locations. Mall rentals at
Mulund declined 4.6% during the quarter due to
existing high vacancy. A number of apparel and
footwear brands are expanding operations in
peripheral main-streets of Vasai and Virar due to
increasingresidentsinthisregion.

Outlook
Mumbai’s residential real estate demand is likely
to remain stable in 2Q 2014, resulting in stagnant
capital values from 1Q 2014. Developers are likely to
delay new launches and focus on clearing existing
unsold inventory. With economic fundamentals
likely to improve in 2H 2014, post general elections,
demand in the residential real estate sector might
revive.
In 2Q 2014, office space supply of 1.9 msf is
expected to be added in sub-markets of Goregaon
and Vikhroli. Net-absorption is likely to remain stable
in the upcoming quarter with transaction activity
concentrated in Andheri, Goregoan and Thane-
Belapur Road. Also, with stability in demand, rental
values are likely to remain unchanged in all major
submarkets in the short-term.
Demand for quality mall space is expected to
remain high from retailers who are planning store
expansions in the city. Limited availability and high
demand from F&B and apparel sectors for mall
spaces at Lower Parel, Malad and Goregaon could
result in rental appreciation in the short-term.
Demand for space at main-streets such as Chembur,
Borivali and Vashi is also expected to increase in the
upcoming quarter, resulting in rental values
appreciation at these locations.
39

National Capital Region
MARKET OVERVIEW
Due to current state of the economy and political
situation, NCR witnessed fewer launches in the first
quarter of 2014. New launches declined by 18% over
the previous quarter and were noted at around
6,500 units. More than 95% of the new units
launched in the quarter were in the mid-segment
and the remaining 5% were in the affordable
segment. This is a notable shift from the previous
quarter, which witnessed majority launches in the
affordable segment. Low demand continued to
impart pressure on rental and capital values across
most submarkets of NCR, resulting in capital and
rental value decline of 3-5% in many submarkets.
In 1Q 2014, NCR office sector also witnessed a
decline in supply due to completion delays in many
buildings. At 1.7 msf, Grade A supply in NCR declined
around 53% from the previous quarter.
Approximately 1 msf of pre-commitments were
noted during the quarter primarily from the IT-ITeS
companies. IT-ITeS sector also led the leasing
activity during this quarter, accounting for 46% of
total leasing followed by the Consulting and
Engineering sectors. Net absorption declined 18%
from the previous quarter and was noted at 1.4 msf.
The first quarter of 2014 did not witness any new
addition to the existing mall supply of NCR. Some
amount of transaction activity was witnessed in
select malls of South and North Delhi only. Main
street locations witnessed a number of transactions
in Connaught Place, Khan Market, South Extension
and DLF Galleria. In mall space, vacancy remained
almost similar to the previous quarter and was noted
at 13.4%. Rental values maintained status quo in
malls and main street locations.
TRENDS AND UPDATES
In 1Q 2014, capital and rental values declined in the
range of 3-5% across submarkets of South Delhi,
primarily due to subdued transaction activity
prevailing for the past few quarters. Capital values in
Central Delhi maintained status quo owing to stable
supply-demand dynamics. Gurgaon and Noida
markets reported stagnant capital values in the high-
end segment from the previous quarter. In the luxury
and mid-end segment of Gurgaon, capital values
declined q-o-q by 5% and 3% respectively due to
sluggish demand and availability of ready-to-occupy
projectsinthevicinity.
40
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
16,500
11,500 11,500
13,250
9,750
8,250
ITC Laburnum
Uniworld City
ATS Greens Village
Richmond Park
Vatika City
Eldeco Utopia

High-end Segment:
South-West: Shanti Niketan, Westend, Anand Niketan,
Vasant Vihar
South-East: Friends Colony East, Friends Colony West,
Maharani Bagh, Greater Kailash - I, Greater Kailash – II.
South Central: Defence Colony, Anand Lok, Niti Bagh,
Gulmohar Park, Hauz Khas Enclave, Safdarjung
Development Area, Mayfair Gardens, Panchsheel Park,
Soami Nagar, Sarvodaya Enclave.
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.
Mid-Segment:
South-East: New Friends Colony, Kalindi Colony, Ishwar
Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave.
South Central: Uday Park, Green Park, Saket, Asiad
Village, Geetanjali Enclave, Safdarjung Enclave,
Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar.
Key to Locations:
Average Capital Values – High End (INR '000/sf)
Location
South-West
South-East
South Central
Central
Gurgaon
Noida
Note: The above values for mid-segment typically include units of 1,600-2,000 sf
Average Capital Values – Mid End (INR '000/sf)
South-East
South Central
Gurgaon
Noida
Location
NCR witnessed new launches of approximately
6,500 units in the first quarter of 2014. Majority of the
newlaunchesbelongedtotwoprojectsinSector118of
Noida. Shifting from the last year’s trend when
launches were primarily in the affordable segment,
95% of the launches in 1Q 2014 were in mid-end
segment.BesidesNoida,newunitswerealsolaunched
on Sohna Road with an aim to capitalise on the fact
thatitliesinproximitytotheGolfCourseroadandGolf
Course Extension road. Some projects were launched
in Noida extension as well, a few of which were
additions to already existing projects. Due to the
uncertainty of upcoming elections, many developers
continuedthesoft-launchstatusoftheirprojects.
41
29.0 34.0
21.0 24.0
21.0 25.0
40.0 45.0
5.3 12.5
5.2 6.5
2009
36.0 43.0
24.0 30.0
25.0 32.0
50.0 57.0
6.2 18.0
5.5 7.0
2010
42.0 50.0
25.0 35.0
27.0 40.0
50.0 65.0
8.5 21.0
5.5 7.5
2011
50.0 60.0
25.0 45.0
27.0 50.0
60.0 80.0
10.5 32.0
6.2 8.1
2012
25.0
42.5
25.0
27.0
60.0
11.0
7.0
57.5
40.0
48.0
90.0
8.5
1Q 2014
45.0 60.0
25.0 40.0
27.0 50.0
60.0 - 90.0
11.0 27.5
7.0 8.5
2013
14.5 16.5
18.5 20.5
4.0 6.5
3.2 5.5
2009
15.0 20.0
20.0 23.5
4.5 7.5
3.8 5.6
2010
15.0 - 28.0
25.0 - 30.0
5.0 - 9.0
4.2 - 5.8
2011
25.0 30.0
25.0 35.0
6.8 10.5
4.3 6.2
2012
22.5 27.5
25.0 35.0
7.5 11.0
5.0 6.0
1Q 2014
25.0 30.0
25.0 35.0
7.5 11.5
5.0 6.0
2013

Citibank property-insights-q1-2014

Citibank property-insights-q1-2014

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