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Residential Property Market OverviewFebruary 2014
research & forecast reportSYDNEY CENTRAL BUSINESS DISTRICT
2 Research & Forecast Report | Feb 2014 | Residential | Colliers Internationalwww.colliers.com
ecoNoMIc BaroMeter
Dec-12 Dec-13
repo rate 8.00% 7.75%
reverse repo rate 7.00% 6.75%
crr 4.25% 4.00%
Inflation 7.31% 6.16%
home loan rate 10.00% 10.30%
returN oN alterNatIve INvestMeNts
Dec-12 Dec-13 YoY % Change
Gold 31,096 30,434 -2.13%
silver 59,963 46,121 -23.08%
fixed Deposit 8.50% 9.00% 5.88%
equity 18,916 20,703 9.44%
realty Index 1,940 1,347 -30.57%
repo rate cash reserve ratio Wholesale price Index
ecoNoMIc INDIcators
In p
erce
ntag
e
Macro Economic Overview
The GDP grew by 4.6% in the first half of FY2013-14, which is the slowest • economic growth rate in the last nine years. The Reserve Bank of India (RBI), The World Bank, IMF and ADB have lowered the growth forecast from 3.75% to 5.3% for 2013-14.
RBI raised its policy repo rate to 7.75% amid market worries over slowing growth and •the prospect of further tapering of US stimulus. Following the hike, banks are likely to increase their home loan rates.
Due to the pessimistic economic outlook, sales volumes have come down by 15% to •40%. In the primary market, many developers were willing to negotiate on prices and offered various incentives. In the secondary market, a substantial discount was available and prices were well below that of the primary market. This is primarily because investors shied away from the market, as they found it difficult to flip units and do not foresee significant capital appreciation in the realty sector in the short term.
COLLIERS VIEW: The Indian real estate markets are primarily sentiment driven, and •the perception due to the adverse economic climate is that the residential sector will witness lower demand until at least the national elections. We believe that for those looking at a longer term investment, this is a good time to buy a property. Property today is available at good discounts, and with prospects of a stable government the demand is likely to rebound.
4.0
3.0
6.0
5.0
8.0
9.0
7.0
11.0
10.0
12.0
apr
‘09
feb
‘09
Dec‘
09
apr‘1
1
apr‘1
2
Jun
‘13
aug
‘13
oct
‘13
Dec
‘13
apr
‘13
feb‘
11
Jun
‘09
Jun‘
10
apr‘1
0
feb‘
10
Jun‘
11
Jun‘
12
aug’
08
jun’
08
apr
‘08
aug‘
09
aug‘
10
aug‘
11
aug‘
12
Dec’
08
oct
‘08
oct
‘09
Dec‘
10
oct
‘10
oct
‘11
oct
‘12
feb‘
12
feb‘
13
Dec‘
11
Dec‘
12
2.0
1.0
0.0
-1.0
-2.0
Source: Goverment of India, Colliers International India Research
Research & Forecast ReportIndia I Residential | Feb 2014
1 SBI Home loan rate for loan upto INR 30 Lakhs2 SBI Fixed deposit rate for a period of more than one year and amount below INR 1 Crore3 Realty Index is a free float weighted index, comprised of real estate development companies in the BSE-500 Index.
2
3
1
3
4Q 2013 1Q 2014F
capital value
rental value
New project
construction pace
MuMBaI
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
aveza (Gateway towers) Mulund east tata housing 4Q 2017 13,500
elanza santacruz east shamik Group 1Q 2015 17,000
Monte south Byculla Marathon realty 4Q 2018 18,999
palava Dombivali lodha Group 4Q 2018 4,545
raheja ridgewood Goregaon raheja Group 4Q 2017 13,250
sunteck city - avenue II Goregaon sunteck realty 4Q 2018 12,750
•Demand for premium residential properties in the secondary sales market remained moderate this quarter due to high price points. In the primary market, developers remained open to negotiation on prices in projects having significant unsold inventory.
The market witnessed limited projects •launched in micro-markets like Goregaon, Byculla and Dombivali. These projects were priced in the range of INR 12,750 to 19,000 per sq ft. A large-scale mid-range project, Palava by Lodha Group, was launched at Dombivali at INR4,545 per sq ft.
The average capital and rental values of •prime residential properties remained stable. Due to very limited transactions by both investors and end-users across the city.
The state government has increased the •ready reckoner rates for residential and commercial properties by up to 20% in 26 posh zones of Mumbai. The increase in rates will impacts micro-markets like Worli, Napeansea Road, Altamount Road and Carter Road. The government is expected to collect over INR20,000 crore in 2013 - 14 via stamps and registration. The increase in the ready reckoner rates may result in increase in property prices in these areas.
COLLIERS VIEW:• Low liquidity, an increase in interest rates and ready reckoner rates will keep residential markets under pressure in coming quarters. Absorption in the luxury segment will remain restricted; however, the new launches in the middle and low-end segments will continue to have traction at the introductory prices. Overall capital values in the primary and secondary sales markets are expected to be under pressure in the short to medium term.
0
10,000
20,000
30,000
40,000
60,000
70,000
50,000
80,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
80,000
40,000
50,000
70,000
60,000
10,000
20,000
30,000
0
Mumbai
prab
hade
vi
colaba, cuffe parade
sout
h M
umba
i
Malabar hill, altamount road, carmichael road
Worli
Wor
li
Breach candy, Napeansearoad, peddar road
prabhadevi
Band
ra
Bandra
sant
acru
z
santacruz
andh
eri
andheri
pow
ai
powai
Khar
Khar
Juhu
Juhu
200
150
100
50
0
powai
Khar
prabhadevi
Breach candy, Napeansea road, peddar road
Malabar hill, altamount road, carmichael road
colaba, cuffe paradeBandra
Juhu
andheri
Worli
santacruz
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
thane - Kalyan 4,000 - 8,000
Navi Mumbai 3,500 - 7,500
virar - Boisar 3,000 - 5,500
INvestMeNt opportuNItIes
4 Research & Forecast Report | Feb 2014 | Residential | Colliers International
4Q 2013 1Q 2014F
capital value
rental value
New project
construction pace
DelhI
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
capital Greens shivaji Marg Dlf ltd. 2Q 2015 14,000
castlewood okhla Indiabulls ltd. 2Q 2014 12,800
Kings court Greater Kailash- II Dlf ltd. 1Q 2015 40,000
Queens court Greater Kailash- II Dlf ltd. 1Q 2015 36,000
signature villas connaught place tata housing ltd. 4Q 2017 120,000 - 150,000
Winter hills Dwaraka Morh umang realtech 2Q 2014 10,250
The Delhi residential market remained •depressed for a third consecutive quarter. Sales volumes were reduced significantly primarily because of limited investor interest in view of the current political turbulence.
Limited new supply entered into Delhi •prime residential this quarter, in the form of redevelopment in Vasant Vihar and Panchsheel Park micro markets.
Pressures on rents continued with the •officials of multinational corporations and expatriates that are currently trying to optimise their costs negotiating on rental values. However, asking rentals have not changed much from previous quarter.
Capital values have come under pressure •and properties were available in the market at heavy discounts. The sales volumes were low and only a few deals were concluded.
In order to create more land for residential •development on the outskirts of Delhi, the Delhi Development Authority (DDA) proposes to target areas like Kanjhawala, Najafgarh, Burari, Ghitroni and Bawana for real estate development as amended in Master Plan of Delhi (MPD-2021).
COLLIERS VIEW:• The residential sector will witness restricted demand until at least the national elections. However, the new state government started focusing on various stalled infrastructure projects in the city which are expected to be operational in coming quarters. Rental and capital values will remain under pressure in near term for premium properties.
0
15,000
30,000
45,000
60,000
90,000
105,000
75,000
120,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
80,000
40,000
50,000
70,000
60,000
10,000
20,000
30,000
0
Delhi
200
160
120
80
40
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
anan
d Ni
keta
n,
vasa
nt v
ihar
panc
hash
ila, a
nand
-lo
k, Ni
ti Ba
gh, s
Da
frie
nds
colo
ny,
Mah
aran
i Ba
gh
shan
ti Ni
keta
n,
Wes
tend
Grea
ter
Kaila
sh I
&
II, s
outh
ext
ensi
on
Golf
link
s, J
or B
agh,
su
nder
Nag
ar
chan
akya
pur
i
prith
vira
j roa
d,
aura
ngze
b ro
ad
anand Niketan, vasant vihar
panchashila, anandlok, Niti Bagh, sDa
friends colony, Maharani Bagh
shanti Niketan, Westend
Greater Kailash I
& II, south extension
Golf links, Jor Bagh, sunder Nagar
chanakya puri
prithviraj road, aurangzeb road
prithviraj road, aurangzeb road
Golf links, Jor Bagh, sundar Nagarshanti Niketan, Westend
chanakya puri friends colony, Maharani BaghGreater Kailash I & II, south extension
panchashila, anandlok,Niti Bagh, sDa
anand Niketan, vasant vihar
5
4Q 2013 1Q 2014F
capital value
rental value
New project
construction pace
GurGaoN
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
ashiana landcraft sector 88a ashiana Group 4Q 2017 6,250
Bptp pedestal sector 70a Bptp ltd. 4Q 2018 7,000
eldeco sohna sohna road eldeco Group 4Q 2018 4,250
Imperial tower (Godrej summit) sector 104 Godrej Group 4Q 2017 7,400
Ivy terraces sector 70 unitech ltd. 4Q 2018 4,500 - 6,500
tranquil heights sector 82a vatika Group 4Q 2017 7,200
0
5,000
10,000
15,000
20,000
30,000
35,000
40,000
25,000
45,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
18,000
8,000
10,000
16,000
14,000
12,000
2,000
4,000
6,000
0
Gurgaon
Nh -
8
sohna road & ext
Golf
cour
se r
oad
Dlf phase I
sohn
a ro
ad &
ext
Dlf
phas
e I
Nh - 8
Golf course road
sush
ant l
ok
sushant lok
80
60
40
20
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
Golf course road extension 7,500 - 9,000
sohna extension 4,000 - 5,000
pataudi road 4,500 - 5,500
New Gurgaon 4,000 - 5,000
INvestMeNt opportuNItIes
•During 4Q 2013, restricted investor activity pulled down the overall demand in Gurgaon’s residential market. In the primary market, developers did not reduce the base selling price, but many were willing to negotiate and offered various incentives.
Projects which were close to completion •witnessed robust demand from end-users. However, in the secondary market, a substantial discount was available and prices were well below that of the primary market. Slow construction activities resulted in completion of few residential projects / parts of projects like “Tulip Orange” by Tulip Infratech Pvt, Ltd, at Sector 70.
Due to decreased demand, developers •remained cautious in launching new projects. Restricted sales volumes in both primary and secondary markets resulted in downward pressure on both capital and rental values across all micro markets.
In order to boost residential real estate •activities, the Haryana government has decided to allow mixed land use in commercial zones notified in the master plan. According to the new policy, projects with at least 10 acres land and located along at least 30 meter wide road, will be allowed mixed use development comprising a maximum of 50% residential usage.
COLLIERS VIEW:• Looking forward, the capital values are expected to remain under pressure in coming quarters. End-user activity is expected to remain restricted primarily due to high price points and relatively fewer options available for mid-segment housing. The pre-launches in the mid- and low-end segment will continue evince good response at the introductory prices.
Dlf phase I
Nh-8
Golf course road
sushant lok
sohna road & ext
6 Research & Forecast Report | Feb 2014 | Residential | Colliers International
4Q 2013 1Q 2014F
capital value
rental value
New project
construction pace
NoIDa
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
Brys Buzz sector 150 Brys Group 4Q 2017 17,000
Mahagun Meadows sector 150 Mahagun Group 4Q 2016 4,550
pratishtha sector 75 panchsheel Buildtech pvt. ltd 4Q 2017 4,960
romano sector-118 supertech ltd. 4Q 2017 4,150
vasilia sector-32 & 25a Wave Group 4Q 2016 8,370
victory We sector 25a victory projects 4Q 2015 8,650
The NOIDA residential property market •witnessed low sales volumes in both primary and secondary residential markets in 4Q 2013.
New launches have dried up in the •fourth quarter in NOIDA and only a few residential projects were launched, in the price band of 4000 to 9000 per sq ft. However a premium residential project “Brys Buzz” by Brys Group at Sector 150 was priced at INR17,000 per sq ft.
Capital values and rental values in both •primary and secondary markets remained stable; this is due to limited interest from both investors and end-users. However, developers offered various incentives, that included cash discount to clear their unsold inventories.
In order to optimise the utilisation of land •and improve the habitability of NOIDA, the NOIDA authority has approved a mixed land use policy in NOIDA Master Plan 2021, which will permit residential facilities in commercial and institutional areas.
COLLIERS VIEW:• Currently, investors are delaying their decisions due to economic and political uncertainties. However, considering the fact that the NOIDA residential market is primarily driven by end-users, the market may see marginal increase in end-user and investor activity with many new projects in the pipeline offering various attractive offers and other promotional schemes to lure buyer interest. The market is expecting the completion of various projects that were launched during 2009 to 2010 and which have already been delayed one or two years. This additional supply will keep capital and rental values stable across all micro markets.
0
1,500
3,000
4,500
6,000
9,000
10,500
7,500
12,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
3Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
12,000
6,000
7,500
10,500
9,000
1,500
3,000
4,500
0
NOIDA
sector 50
sector 44
sector 61,62,63
sector 28,29,30
sector 92/93
40
30
20
10
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
NoIDa expressway 4,000 - 7,000
sectors 71 to 83 4,500 - 5,500
INvestMeNt opportuNItIes
sect
or 2
8, 2
9, 3
0
sect
or 9
2/93
sect
or 6
1, 62
., 63
sect
or 5
0
sect
or 4
4
sector 61,62,63
sector 92 / 93
sector 28,29,30
sector 50sector 44
7
4Q 2013 1Q 2014F
capital value
rental value
New project
construction pace
cheNNaI
2,000
6,000
18,000
14,000
10,000
22,000
30,000
26,000
38,000
34,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
25,000
9,000
13,000
21,000
17,000
1,000
5,000
Chennai
anna Nagar
Boat club
adyar
Nungambakkam
Beasant Nagar
t Nagar
sholinganallur
siruseri/ Kazipattur
alwarpet / r a puram
velachery
85
70
55
40
25
10
-5
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
velachery 5,000 - 7,000
sholinganallur 3,500 - 4,200
siruseri/ Kazipattur 3,000 - 4,000
Kelambakkam 3,000 - 4,000
INvestMeNt opportuNItIes
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
aldea thoraipakkam casa Grande 4Q 2015 5,100
czar r.a.puram real value 4Q 2015 25,000
lilac heights r.a.puram eta star 4Q 2015 18,000
Manadarin thoraipakkam radiance 2Q 2015 7,100
park residence Kotturpuram olympia Group 4Q 2015 23,000
sukriti t.Nagar BBcl 2Q 2015 15,000
•In 4Q 2013, many new premium and mid-range projects were launched in Chennai. Micro-markets like R.A. Puram, T. Nagar and Kotturpuram saw premium projects launched in the price range of INR15,000 - 25,000 per sq ft, while micro-markets like Thoraipakkam, Kelambakkam, Siruseri and Pallikaranai witnessed mid-range projects launched in the price bracket of INR3,000 - 7,000 per sq ft.
4Q 2013, saw completion of various •premium projects, including Jashn by Arihant Group at Egmore, 36 Carat by Akshaya Homes at Kilpauk, both priced in the range of INR18,000 - 22,000 per sq ft and mid-range projects like Oriana by Doshi Housing at Perungudi; Svasti by True Value Homes at Thoraipakkam; Lotus Pond by Vijayshanthi Group at Padur; Upscale by Hiranandani Group and Opaline Ph II by Olympia Group, both at Egattur.
During the same quarter, capital •values increased in the range of 2 - 9% QoQ across all micro-markets, except Nungambakkam and Anna Nagar, where capital values remained stable due to the high price bracket and low demand base.
Rents increased in the range of 4 - 10% •QoQ in most micro-markets, except Boat Club, Anna Nagar, Adyar, Beasant Nagar, T Nagar and Velachery where rents remained stable.
COLLIERS VIEW:• Going forward, we expect a moderate increase in capital values in the short term in the mid-range segment. The demand is expected to pick up further in this segment in the near term. Rental and capital values for premium properties will continue to remain stable cautious sentiments of investors as well as occupiers.
adya
r
anna
Nag
ar
Nung
amba
kkam
alw
arpe
t / r
a p
uram
vela
cher
y
shol
inga
nallu
r
siru
seri/
Kaz
ipat
tur
t Na
gar
Beas
ant N
agar
Boat
clu
b
Boat club
siruseri/ Kazipattur
velachery
sholinganallur
anna Nagar
t Nagar
adyarBeasant Nagar
Nugambakkam
alwarpet /r a puram
8 Research & Forecast Report | Feb 2014 | Residential | Colliers International
4Q 2013 1Q 2014F
capital value
rental value
New project
construction pace
BeNGaluru
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
concorde amber off sarjapur road concorde Group 4Q 2016 4,000
Mantri lithos off hebbal Mantri Developers 4Q 2017 5,590
prestige lakeside habitat varthur road prestige Group 4Q 2017 4,770
purva Westend hosur Main road puravankara Developers 4Q 2017 4,890
skylark Ithaca Whitefield skylark Mansion 4Q 2017 3,930
sobha palladium Yemlur, old airport road sobha Developers 4Q 2016 8,560
In 4Q 2013, the Bengaluru residential •market witnessed reasonable demand for residential space, mainly in micro-markets like Yelahanka, Sarjapur, Whitefield and Thanisandra Road. However there were less projects launched this quarter as compared to previous three quarters.
In this quarter, the city witnessed •completion of various premium and mid-range projects, like Nitesh Central Park by Nitesh Estates at Bagalur Cross, Concorde South Scape by Concorde Group at E-City Phase 2, Patel Smondo Ville by Patel Realty at E-City Phase 1, and Chartered Jardin by Chartered Housing at RMV 2nd Stage.
Overall capital values in most of the •micro-markets remained stable during the quarter; however, a increase of 9 - 12% QoQ was witnessed in locations like Jayanagar, Bannerghatta Road, Whitefield and Yelahanka. This is because few projects have been launched at a premium price, making a significant change in the average capital price range.
Continuous demand from IT/ITeS sector •employees caused an upsurge of 1 - 7% in rents QoQ, across all micro-markets.
In a major land deal, Tata Housing has •purchased 20 acres of land in north Bengaluru from Alstom T&D India for a total consideration of INR120 crore to develop a luxury housing project.
COLLIERS VIEW:• The city’s premium residential market is expected to remain active, due to healthy residential demand for mid-range and premium housing, accompanied by full-on construction activities. Looking at the positive outlook, we anticipate that capital values will increase further from 2 to 4% QoQ across all micro-markets.
0
4,000
8,000
12,000
16,000
24,000
28,000
20,000
32,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
25,000
20,000
15,000
5,000
10,000
0
Bengaluru
Jayanagar
central
palaceorchard
cooke town
airport road
Indiranagar
Koramangala
Whitefield
Yelahanka
Bannerghatta road
80
60
40
20
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
airport road 5,000 - 7,000
Bannerghatta road 4,200 - 6,000
Whitefield 4,400 - 6,000
Yelahanka 3,500 - 5,000
INvestMeNt opportuNItIes
Yela
hank
a
Bann
ergh
atta
roa
d
airp
ort r
oad
airp
ort r
oad
Whi
tefie
ld
Jaya
naga
r
cook
e to
wn
Kora
man
gala
Indi
rana
gar
pala
ce o
rcha
rd
cent
ral
central
YelahankaKoramangala
Indiranagar
Jayanagar
Bannerghatta road
palace orchard
cooke town
airport road
Whitefield
9
4Q 2013 1Q 2014F
capital value
rental value
New project
construction pace
KolKata
0
10,000
20,000
30,000
40,000
60,000
70,000
50,000
80,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
1Q20
08
3Q20
08
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
20,000
8,000
10,000
18,000
16,000
12,000
2,000
4,000
6,000
0
Kolkata
50
40
30
20
10
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
tollygunge 3,600 - 4,800
Behela 2,900 - 3,700
salt lake 4,000 - 6,000
eM Bypass 4,000 - 7,000
New town -rajarhat 3,200 - 4,600
INvestMeNt opportuNItIes
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
curiocity action area-III realtech Nirman 4Q 2016 4,150
Ideal aquaview Mahishbatan Ideal Group 4Q 2016 3,700
Ivory tower tollygunj Ivory Group 4Q 2015 4,000
Magnolia skyview rajarhat Magnolia Group 4Q 2016 3,200
North Grande Belghariya expressway Mounthill realty 4Q 2016 3,600
sucasa twins Norendrapur rupayan construc-tion pvt ltd 4Q 2015 2,900
Reasonable demand was witnessed •during the quarter, primarily in mid-range micro-markets located in South and North Kolkata. Most of this demand has come from end users.
During 4Q 2013, the Kolkata residential •market saw many new launches especially in micro-markets like Rajarhat Action Area-III, Mahishbathan, Tollygunj, Narendrapur and Belghariya Expressway. Most of these projects were launched in the affordable and mid-ranges and were priced in the range of INR2,900 - 4,150 per sq ft.
Construction activities remained •moderate resulting in completion of few projects / parts of the projects during the last quarter of 2013, including Meera Garden by Rajat Group at Madhyamgram and Tirumani by Mani Group at Ballygunje.
Capital values in the premium residential •market remained stable in almost all micro-markets, except Alipore and Ballygunge where around a 3% QoQ increase was witnessed during the quarter. On the other hand, rents rose in the range of 1 - 4% QoQ in almost all micro-markets, except PA Shah Road, Loudon Street, Ballygunge and VIP Road where rents remained stable, due to low base demand and limited availability.
COLLIERS VIEW:• Many mid-range and affordable residential projects were launched in the peripheral locations and the city witnessed increasing activity in the mid-range segment. This could be due to smaller ticket size and affordability. Looking forward, capital values are expected to rise marginally, especially in the outskirt micro-markets due to demand from end-users.
alip
ore
Bally
gung
e
Bhaw
anip
ur
eM B
ypas
s
pa s
hah
road
loud
on s
tree
t
New
tow
n -r
ajar
hat
salt
lake
tolly
gung
e
vIp
road
Behe
la
Bhawanipur
pa shah road
tollygunge
loudon street
Behela
aliporeeM Bypass
Ballygunge
salt lake
vIp road
New town rajarhat
Bhawanipur
eM Bypass
Ballygunge
Behela
tollygunge
p a shah road
New town - rajarhat
loudon street
alipore
vIp roadsalt lake
10 Research & Forecast Report | Feb 2014 | Residential | Colliers International
Demand for residential units in Pune •continued to remain stable and the city witnessed launch of a number of mid-range projects in the price range of INR 4,500 to 5,500 per sq ft. However, few premium projects like “The Palladium” by Guardian Developers at Kothrud, “Sanctum” by Kumar Properties at Baner, and “Panchshil One North” by Panchshil Realty at Hadapsar, were priced in the range of INR9,900 to INR14,900 per sq ft.
During the surveyed quarter, construction •activities remained slow and thus no known projects / parts of projects saw completion. Going ahead, construction activities are likely to improve.
Capital values in micro markets like •Kalyani Nagar, Viman Nagar, Kharadi, Deccan, Camp, Boat Club, Pimpri-Chinchwad and Chakan saw a marginal increase in the range of 1% to 3% quarter-on-quarter (QoQ). The rest of all micro markets remained stable.
In 4Q 2013, the local government hiked •the Ready Reckoner (RR) rates in an average range of 10% to 20% in almost all the micro markets. Capital values are set to increase mainly in locations like Koregaon Park, Pimple Gurav and Pimpri-Chinchwad, where a sharp increase in rates was witnessed.
COLLIERS VIEW:• The Pune residential market saw many new launches in both premium and mid segments. Continuous demand from end-users and investors was witnessed and is expected to continue in the coming few quarters. In anticipation of reasonable demand, capital values are expected to rise in the mid-range and affordable housing locations like Pimpri-Chinchwad, Chakan and Kondhwa in the range of 2% to 3% on a quarterly basis.
4Q 2013 1Q 2014F
capital value
rental value
New project
construction pace
puNe
SELECT NEW PROJECTS
PROJECT NAmE LOCATION DEvELOPER NAmE
TENTATIvE POSSESSION*
RATE (PER SQ.FT.)**
Bramha skycity Dhanori Bramha realty & Infrastructure 3Q 2015 4,550 - 4,600
eastern ranges phase II Keshav Nagar phadnis properties 4Q 2015 5,200
Guardian the palladium Kothrud Guardian Developers 1Q 2017 14,900
Nyati evita lohegaon Nyati Group 4Q 2016 4,500
panchshil one North hadapsar panchshil realty 4Q 2016 9,900
sanctum Baner Kumar properties 1Q 2017 12,000
0
10,000
20,000
30,000
40,000
60,000
70,000
50,000
80,000
INr
per
sq.ft
.IN
r pe
r sq
.ft. p
er m
onth
3Q20
09
1Q20
09
1Q20
10
3Q20
10
1Q20
12
3Q20
12
1Q20
13
3Q20
13
3Q20
14f
1Q20
14f
1Q20
11
3Q20
11
11,000
6,000
8,000
7,000
10,000
9,000
3,000
4,000
5,000
2,000
Pune
30
25
20
15
10
5
0
INr
per
sq.ft
.
Note: above values represents indicative asking price for premium properties
Note: * as mentioned by developer ** Base selling price as quoted by developer
averaGe capItal value raNGe
averaGe reNtal value
averaGe capItal value treNDs
cItY resIDeNtIal BaroMeter
Note: ongoing price: Indicative asking price in the primary market.
micro market Ongoing Price (P.S.F)
Kalyani Nagar/viman Nagar/Kharadi
5,000 - 12,000
Baner/hinjewadi/Wakad/pashan 5,000 - 12,000
Kothrud/Bavdhan/Wajre 3,800 - 6,000
NIBM/undri/Kondhwa 3,800 - 5,000
pimpri/chinchwad/chakan 3,000 - 4,500
INvestMeNt opportuNItIes
Kaly
ani N
agar
/vi
man
Nag
ar/
Khar
adi
Bhaw
anip
ur
Decc
an/c
amp/
Boat
clu
b
Bane
r/h
inje
wad
i/W
akad
/pas
han
Mag
arpa
tta/
had
apsa
r
NIBM
/und
ri/K
ondh
wa
Koth
rud/
Bavd
han/
Waj
re
pim
pri/c
hinc
hwad
/ch
akan
Kalyani Nagar/vi-man Nagar/Kharadi
Bhawanipur
Deccan/camp/Boat club
Baner/hinjewadi/Wakad/pashan
Magarpatta/hadapsar
NIBM/undri/
Kondhwa
Kothrud/ Bavdhan/ Wajre
pimpri/chinchwad
/chakan
Kalyani Nagar/viman Nagar/KharadiKothrud/Bavdhan/Wajre
NIBM/undri/Kondhwa
pimpri/chinchwad/chakan
Deccan/camp/Boat club/central puneMagarpatta/hadapsar
Baner/hinjewadi/Wakad/pashan
11
MumbaiThe high-end residential real estate markets in Mumbai include Malabar Hill, Altamount Road, Carmichael Road, Napean Sea Road, Breach Candy, Colaba, Cuffe Parade, Prabhadevi, Worli, Bandra, Khar, Santacruz, Juhu and Powai.
DelhiThe prime residential areas in Delhi are in the South region and comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan and Central Delhi locations. These areas enjoy proximity to embassies, the airport and central commercial areas - Connaught Place.
GurgaonThe prime residential locations of Gurgaon include Golf Course Road, DLF Phase I, Sushant Lok and Sohna Road. The Delhi- Jaipur Highway (NH-8) is also emerging as a preferred residential location owing to its proximity to the national capital.
NOIDANOIDA premium residential market is comprised of sectors 44, 50, 92, 61, 62, 63 , 28, 29, 30 and Taj Express Highway.
ChennaiThe prime residential areas in Chennai include Boat Club, R.A.Puram, MRC Nagar, Thiruvanmiyur, Valmiki Nagar and Besant Nagar, R.A Puram, Mylapore and Adyar in South Chennai, Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, T. Nagar in Central Chennai; and Anna Nagar, Kilpauk in North West Chennai.
Bengaluru (Bangalore)The residential market of Bengaluru comprises both apartments and independent residences. Currently, high-end residential developments are mainly concentrated along the CBD, and Eastern and South precincts of the city. Recently, Northern Bengaluru has also witnessed a spree of realty activity facilitated by the new International Airport at Devanhalli.
KolkataThe prime residential areas in Kolkata include PA Shah Road, Tollygunge and Bhawanipur in South Kolkata, Alipore and Behala in South-west Kolkata, Loudon Street and Ballygunge in Central Kolkata; and Salt Lake, EM Bypass and VIP Road in North Kolkata.
Pune The prime residential areas in Pune include Kalyani Nagar, Viman Nagar, Boat Club Road, NIBM Road, Magarpatta, Hadapsar, Koregaon Park. Recently, increased activities has been witnessed in Pimpri-Chinchwad, Baner-Pashan and Kondhwa.
Residential Submarkets
cItY BaroMeters
Increasing as compared to previous quarter
Decreasing as compared to previous quarter
Remained stable from previous quarter
12 Research & Forecast Report | Feb 2014 | Residential | Colliers International
Copyright © 2014 Colliers International.
ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
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