pulse may 2014 final

Pulse Monthly Real Estate Monitor

Market Highlights

May 2014

APRIL 2014

Leasing activity improves in Bangalore

Rents and capital increase in Bangalore

Demand continues to remain sluggish

Get city Pulse by clicking below

Market Sentiment

Deal of the

month

Real

esto

nom

ics

Think About It!!

Green Wall

Pulse Monthly Real Estate Monitor May 2014

Favourable Neutral Unfavourable

Legend: Market Sentiment

India’s Residential Sector through the looking glass India’s residential sector is passing through interesting times. Through the microscopic lens of our Real Estate Intelligence Service, we have identified the top ten trends of the Indian residential sector over the past two or three quarters. 1. Supply – is showing variable signs of cyclical ups and downs

depending on launches. Affordable and lower-priced residential corridors were the prime drivers of new launches.

2. Demand – on the slowing curve in NCR-Delhi, but stable in all other cities, primarily on the back of new launches in emerging residential corridors being able to attract buyers.

3. Vacancy rate – in terms of available apartment units, has risen across all cities

4. Rents – have risen marginally across the residential markets of Mumbai, Bangalore, Chennai and Pune.

5. Capital values – have steadily risen across cities. Slowing sales momentum has tempered price growth in the Tier 1 cities.

6. Type of project launches – primarily in the mid-segment category comprising two and three bedroom-hall-kitchen configurations. Developers also launched studio apartments as low-ticket sized projects to attract buyers.

7. Emerging corridors – developers explored newer corridors in cities such as Sohna and NH-24 (NCR-Delhi), Ulwe and Karanjade (Mumbai) and Hennar Road (Bangalore) to offer lower-priced projects to buyers.

8. Infrastructure – projects planned and underway were positioned as pull factors for residential projects launched in the vicinity of such infrastructure developments.

9. Buyer/investor sentiment – remains weak given the high interest rates and rising residential prices.

10. Developer sentiment – is tied to the result of the country’s ongoing general elections. Developers are taking a wait and watch policy, holding prices.

To read more refer to http://www.joneslanglasalleblog.com/APResearch/residential-research/india%e2%80%99s-residential-sector-through-the-looking-glass

The National Housing Bank (NHB) has planned to support long term fixed-rate mortgage loans for lower and middle income group housing by using a portion of tax-free bonds. NHB will refinance banks and housing finance companies to disburse loans up to INR 1000,000. The tenure for these loans will be 15-20 years with a fixed rate. This is likely to give an impetus to affordable housing segment.

Investment climate cautious due to the impending general elections.

250,000 sq ft of office space in Centrum B2 in Kalyani Nagar, Pune was sold to a a high-net-worth individual (HNI) for INR 1.45 billion by private equity firm Milestone Capital Advisors.

According to JLL’s latest report “Offices 2020 - Mapping The Future Of The Mumbai Office Market” about 15000 acres of land will be available in Mumbai for redevelopment. This is likely to create opportunity for more quality supply in the city.

India has crossed the mark of 2 billion sq ft of registered green buildings this month. About 2400 projects which include commercial buildings, institutions and residential buildings are registered as green buildings in India

Next

For more information about our research, contact Ashutosh Limaye Head, Research and REIS +91 98211 07054 [email protected] Trivita Roy Assistant Vice President, Research +91 40 4040 9100 [email protected] Research Dynamics 2014 Pulse reports from JLL are frequent updates on real estate market dynamics. www.joneslanglasalle.co.in

Cities Office Rental Value

Retail Rental Value

Residential Capital values

DELHI

MUMBAI

PUNE

BANGALORE

CHENNAI

HYDERABAD

KOLKATA

Legend

Growing Stabilise Stagnate Falling

Weather Map

DELHI

KOLKATA

CHENNAI BANGALORE

HYDERABAD PUNE

MUMBAI

Back to top

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV

Demand/Vacancy Rental Value (RV) / Capital Values (CV) Increasing Moderate Increase Stable Moderate Fall Falling


Bangalore

Policy/ Infrastructure The state of Karnataka is all set to unveil a new infrastructure policy that seeks to decongest Bangalore and promote Tier II cities. The policy would be formulated in consultation with trade and industry bodies and would help set up high-speed rail corridors between Bangalore and Mangalore, Mysore, Belgaum, Hubli, Tumkur and Kolar. Road connectivity will also be upgraded.

Transaction activity improved across all the sub-markets in the city. Major transactions: • BMA Wealth Creators and

Thorogood in CBD • Tangoe in Whitefield

Bangalore’s retail market continued to witness sluggish demand for retail spaces. Major transactions: • Chai Point in both of Mantri Mall and

Gopalan Mall • Crossword in Indiranagar

All the sub-markets across the city continued to witness stable residential demand. New Launches: • Prestige Falcon City in JP Nagar • Unishire Verzure in Jakkur • United Elysium in Whitefield • Sobha Gladiola in Kanakapura Road • Presidential Tower in Yeshwanthpur

Key Precincts Rental Value (INR per sq ft

per month)

Capital Value (INR per sq ft)

CBD 80–130 10,000–20,000 Old Airport Road 60–75 7,000–10,000

Outer Ring Road (Eastern) 48–55 5,500–6,500 Old Madras Road 45–60 5,000–6,500

Electronic City 26–28 2,800–3,200


per month)


Koramangala 80–150 9,000–16,000 Indiranagar 90–180 10,000–16,000

New BEL Road 50–80 6,000–10,000 Commercial Street 175–250 16,000–20,000

Jayanagar 80–120 7,000–15,000

Key Precincts

Rental Value (INR per month for a 1,000 sq ft

2BHK apartment)


Old Madras Road 15,000–25,000 5,000– 6,000

Indiranagar 20,000–30,000 10,000–25,000

Bellary Road 12,000–18,000 4,500–9,000

Hosur Road 10,000–14,000 3,000–6,500

Whitefield 18,000–25,000 4,500–8,000

Tumkur Road 8,000–12,000 3,000–5,000

Kanakapura Road 8,000–12,000 3,000–5,500

Mysore Road 8,000–10,000 3,000–4,000

Back to top

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV



Chennai

Policy/ Infrastructure • Chennai Municipal Corporation has applied for INR 500 million from

the World Bank for various projects involved in improving traffic congestion in T.Nagar.

• Six-laning work of the Oragadam to Sriperumbadur Road is expected to be completed within a year. The four-lane road will extend its service lane to two-lane width to ease the movement of large container trucks from the neighbouring heavy industries.

Office leasing remained healthy. CBD locations, Mount Poonamalle road (MPR) and Pre-toll OMR continued to remain the most preferred office destination.. Major transactions: • Kotak Mahindra Bank in Pre-toll

OMR • RR Donnelley in CBD • L&T IES, Photon & Delphi in MPR

Both high streets and malls recorded stable retail activity. The much awaited Luxe Cinemas opened in the Phoenix Market City mall. Major transactions: • Megamart opened in Mandaveli • Tanishq Jewellery in

Valsaravakkam • Univercell Sync Store at

Nungambakkam

Demand for housing continued to improve while the city recorded new launches in the upper-mid and luxury segments. New Launches • Altis Oceanique near Muttukadu • Greata Masken Heights near

Velachery • Tango in Thoraipakkam, OMR • One World on V K Road


per month)


Mount Road 60-85 9,000-15,000 RK Salai 65-85 10,000-15,000

Pre-toll OMR 40-67 5,000-6,500 Post-toll OMR 25-35 3,500-5,000

Guindy 40-65 6,000-9,000


per month)


T.Nagar 120 - 180 12,000-15,000 Nungambakkam 130 - 150 13,000-16,000

Velachery 80 - 120 10,000-12,000 Pre-toll OMR 80 - 100 8,000-11,000 Anna Nagar 120 - 150 11,000-13,000

LB Road (Adyar) 120 - 150 10,500-13,500

Key Precincts


2BHK apartment)


Adyar 20,000–30,000 15,000-22,000 Medavakkam 7,000-14,000 3,600-5,500

Tambaram 6,000-12,000 3,500-4,500 Anna Nagar 15,000 – 25,000 9,000-15,000

Porur 5,000-10,000 3,800-6,200 Sholinganallur 9,000-12,000 4,250-5,800

Back to top

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV



Delhi NCR

Policy/ Infrastructure • Circles rates of Gurgaon hiked by an average 10 per cent for the

financial year 2014-15. • Work has recommenced on some portion of FNG corridor between

Noida-Ghaziabad region

Demand continued to see momentum with large space requirements becoming active. New enquiries came in to the market with lease terms for some tenants were nearing expiration. Major transactions: • KPMG in NH 8-Gurgaon • ReNew Power in MG Road-

Gurgaon • Control Risks in Jasola-SBD

Demand remained slow with moderate activity in under construction malls. Retailers were looking at portfolio rationalisation and pre committed in upcoming malls. Major transactions: • Footin in Gurgaon • Saint Louis in Prime South • And, Baggit & SRS Jewels in

Prime Others (all High Street)

Residential sales continued to exhibit a slowing trend. Although there was slight increase in capital values in Gurgaon. New Launches: • Godrej Oasis & Woodview

Residences in Gurgaon • The Arthah in Ghaziabad • Uni Park in Yamuna Expressway-

Greater Noida


per month)


Barakhamba Road 170-400 28,000-35,000 Jasola 110-170 17,000-21,000

DLF Cybercity 80-84 NA MG Road 115-140 17,000-19,000

Golf Course Road 88-105 12,500-15,000


per month)


South Delhi 180-330 24,000-32,000 West and North Delhi 140-230 15,000-23,000 Gurgaon-MG Road 140-270 17,500-23,000

Rest of Gurgaon 60-100 8,000-14,000 Noida 130-220 14,000-25,000

Ghaziabad 90-150 10,500-16,000

Key Precincts


2BHK apartment)


Golf Course Road 26,000-32,000 13,000-19,000 Sohna Road 16,000-20,000 5,800-7,500

Golf Course Extension Road 18,000-22,000 8,500-11,000 Dwarka Expressway NA 5,500-7,500 Noida- Greater Noida

Expressway 13,000-15,000 4,300-6,500

Noida City 12,000-14,500 4,700-6,000 Indirapuram 11,000-12,000 4,500-5,300

Back to top

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV



Hyderabad

Policy/ Infrastructure The shipment of first metro train with three cars been sent out by Hyundai–Rotem Factory Changwon Korea in April. This is likely to reach Hyderabad in the end of May. This is will be run on the track from Nagole to Mettuguda for trial run in June before starting the commercial operations.

Demand remained stable in Hyderabad in April. Hitec City continued to witness most of the leasing activity. Major transactions: • Adapt TV, Symphony and

Cognizant leased space at Hitec City

Demand continued to remain stable on high streets and malls of Hyderabad in April. Major transactions: • Maxl leased space at Tirumulgiri • Bare started their first exclusive

store in India at Nagarjuna Circle

Residential sales remained subdued in April. New launches in both apartments and villas were slow over the month. Key launches: • Serene Mak at Srisailam Highway

by Mak Projects. This is a senior living apartment project

• Pranav Antilia a plotted development by Praneeth Group at Bachupally.


per month)


Begumpet 45–55 4,500–6,500

Banjara Hills 50–60 4,500–7,500 Hitec City 36–42 4,000–5,200

Gachibowli 36–40 4,000–5,000 Uppal 25–35 3,000–4,000


per month)


Banjara Hills 100–130 10,000–13,000

Jubilee Hills 110–140 11,000–14,000 Secunderabad 80–100 8,000–10,000

Hitec City 100–130 10,000–13,000 Kukatpally 100–120 10,000–12,000

Dilsukhnagar 100–120 10,000–12,000

Key Precincts


2BHK apartment)


Banjara Hills 20,000–25,000 7,500–14,000 Begumpet 12,000–16,000 4,000–5,500 Kondapur 8,000–16,000 3,200–5,000

Gachibowli 8,000-16,000 3,500-4,200 Tellapur 6,000–12,000 2,800–3,500

Kukatpally 7,000–10,000 3,500–3,800 Miyapur 5,000–8,000 2,400–3,500

Back to top

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV



Kolkata

Policy/ Infrastructure WBHIDCO would auction off several plots ranging from 0.5 acre to more than 6 acres in New Town on leasehold basis for setting up commercial establishments and residential complexes. The land on offer adds up to over 15 acres will be auctioned after the elections. Among the projects planned are a higher education institute, a nursing college, hotel, offices and residential complexes.

Demand grew moderately in the city with both the occupier and investors getting active, especially in the PBDs. Projects with better facilities remained the key behind the market activities. Major Transactions: • HDFC, Serco BPO and Genpact

all at Salt Lake

Demand for retail spaces in organised malls remained stable with transactions happening all over the city. Major Transactions: • Harley Davidson in Prime City

High Street • Collective and Forever New in

Prime Others • Titan Eye Plus in Suburbs Residential demand in April was stable mostly on the back of good activity in by projects in low and mid categories. New Launches • Avishi Trident near Sinthi More, B T

Road • Panache by a JV of PS Group and

Srijan Realty near Mahisbathan • Merlin Paradise by Merlin Group

near Nagerbazaar


per month)


Park Street 110-140 13,500- 22,000 Topsia 70-90 7,500-10,000 Kasba 75-90 8,000-11,000

Salt Lake Sector V 40-45 4,000-4,800 New Town and Rajarhat 32-36 3,200-4,100


per month)


Elgin Road 300-350 24,000-30,000 Park Street (high street) 325-400 26,000-33,000

Prince Anwar Shah Road 125-160 12,000-15,500 Salt Lake 185-225 15,000--20,000

New Town and Rajarhat 60-80 6,500-8,000 Gariahat (high street) 200-250 16,000-22,000

Key Precincts


2BHK apartment)


Alipore 43,000-52,000 14,000-22,000 Prince Anwar Shah Road 19,000-30,000 7,000-14,000

EM Bypass (Topsia) 15,000-25,000 6,000-10,000 Lake Town 11,000-17,000 3,800-7,500

New Town (AA- I, II & III) 10,000-16,000 3,500-6,000 Rajarhat 8,000–14,000 2,500-4,700 Behala 8,000-14,000 3,000-5,500

Back to top

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV



Mumbai

Policy/ Infrastructure The 3.45 km long Santa Cruz-Chembur Link Road (SCLR) became operational in the month of April, with faster connectivity between Western Express highway & Eastern Express highway.

The office sector recorded lukewarm activity with occupiers remaining cautious as general elections approached. Nonetheless, some of the cash rich companies took advantage of stagnated capital values to buy spaces at prominent locations. Major transactions: • SBI Capital in SBD Central • Lekhi Forgings in SBD North

Categories such as apparel, accessories and F&B continued to lease out spaces in April. High street transactions at certain precincts recorded growth while mall transactions saw moderate pick-up. Major transactions: • CEX at R Mall in Suburbs • Go Colors in Oberoi Mall • Keeda at R-City Mall in Suburbs

The demand for residential sector in Mumbai witnessed a slight fall compared to previous month mainly due to gloomy market conditions. New Launches: • Runwal Mydesire at Dombivali • The Baya Goldspot at Andheri • Uniworld City Amber at Santacruz


per month)


Lower Parel 155 - 185 17,000 - 21,000 BKC 250 - 330 25,000 - 34,000

Andheri 105 - 135 10,000 - 14,000 Goregaon-Malad 85 - 105 9,000 - 10,500

Wagle Estate 50 - 65 5,200 - 6,800


per month)


Lower Parel 260-380 22,000-32,000 Malad 160-250 12,500-20,000

Ghatkopar 130-200 10,100-18,000 Mulund 125-200 9,500-15,500 Thane 100-175 8,000-14,000

Navi Mumbai 75-150 7,000-12,000

Key Precincts


2BHK apartment)


Lower Parel 60,000-1,10,000 25,000– 40,000 Wadala 35,000-60,000 15,000–23,000 Andheri 32,000-55,000 12,500–21,500

Ghatkopar 30,000-45,000 11,500–16,000 Ghodbunder Road 12,000–26,000 6.000–9,500

Kharghar 10,000–18,000 6,000–9,000

Back to top

OFFICE

Demand Vacancy

RV

CV

RETAIL

Demand Vacancy

RV

CV

RESIDENTIAL

Demand Launches

RV

CV



Pune

Policy/ Infrastructure Pune Municipal Corporation (PMC) has decided to conduct safety audit of the Bus Rapid Transit System (BRTS) on Pune-Satara road. The issue was raised by elected corporators at the general body meeting of the civic body. The civic body assured the members that they will check dangerous zones all along the stretch and take up necessary steps to ensure road safety.

Leasing continued to remain stable in the Pune office market. Vacancy decreased marginally during the month. Major transactions: • Lumedx in Hijewadi • Thought Works in Baner • Knowledge Transition

Consultancy in Hadapsar

Pune’s retail market continued to remain stable during the month. Transactions were restricted to only small leases on high street retail areas.

Demand for the residential properties remained stable. A few large projects and integrated townships including Pride City by Pride Group and Pune Ville by Pharande Group are in the pre-launch stage and are likely to come on stream over the next few months. New Launches: • Amador County • The Leaf


per month)


Hadapsar 45-65 5,500-7,500 Kharadi 40-55 4,500-6,000

Hinjewadi 33-40 4,000–5,500 Viman Nagar 55–65 6,500–7,500

SB Road 55–75 6,500–8,000


per month)


MG Road 100-160 15,000–21,000 Bund Garden Road 90–130 13,000–17,000

FC Road 100–150 15,000–20,000 JM Road 100–150 15,000–20,000 DP Road 90–130 12,000–16,000 SB Road 80-140 13,000-16,000

Key Precincts


2BHK apartment)


Wakad 10,000–13,000 4,700–5,700 Hinjewadi 9,000–11,000 4,800–6,500 Kharadi 11,000–15,000 4,800–5,800

Hadapsar 13,000–18,000 5,000–7,500 Undri 8,000–11,000 4,000–5,200

Pimri-Chinchwad 8,000–13,000 4,500–6,000

Back to top

For more information about our research, contact Ashutosh Limaye Head, Research and REIS +91 98211 07054 [email protected] Trivita Roy Assistant Vice President, Research +91 40 4040 9100 [email protected] Research Dynamics 2014 Pulse reports from JLL are frequent updates on real estate market dynamics.

About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. JLL has over 50 years of experience in Asia Pacific, with over 27,500 employees operating in 80 offices in 15 countries across the region. The firm was named ‘Best Property Consultancy’ in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and won nine Asia Pacific Awards in the Euromoney Real Estate Awards 2013. For further information, please visit our website, www.jll.com

About JLL India JLL is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 6800, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, healthcare, senior living, education and retail advisory. The firm was named the Best Property Consultancy in India (5 Star Winner) at the International Property Awards- Asia Pacific for 2012-13. For further information, please visit www.joneslanglasalle.co.in

pulse may 2014 final

Documents