World Winning Cities

Global Foresight Series

India30

Real Estate Opportunities in Tier III Cities

Indias City Tiers

Jammu and Kashmir

Amritsar
Ludhiana

Himachal
Pradesh
Jalandhar
Chandigarh

Punjab

Uttrakhand

Haryana
Meerut

Delhi
Rajasthan
Jaipur

Jodhpur

Agra

Arunachal Pradesh
Sikkim

Uttar Pradesh
Lucknow
Kanpur
Allahabad

Varanasi

Vadodara

Nagaland

Meghalaya

Tripura

Jharkhand

Bhopal

Mizoram

West Bengal

Madhya Pradesh

Gujarat

Guwahati

Manipur

Ahmedabad
Indore

Assam

Bihar
Patna

Kolkata

Surat

Chhattisgarh
Nagpur
Nashik

Orissa
Bhubaneshwar

Maharashtra

Mumbai

Pune
Hyderabad

Visakhapatnam

Vijayawada
Goa

Goa
Karnataka

Mangalore
Mysore

Tier I

Andhra Pradesh

Bangalore

Chennai

Tier II

Tier III (India30)

Defining City Tiers

Jones Lang LaSalles city tiering system is based
on the combined current levels of real estate activity
(supply and demand) in three key sectors offices,
retail and hospitality.

Coimbatore
Kochi
Kerala
Thiruvananthapuram

Tamil Nadu

Tier I cities currently comprise of Delhi, Mumbai

and Bangalore;

Tier II cities comprise of Chennai, Hyderabad,

Pune and Kolkata;

Tier III cities comprise of the India30 cities.

Cities can move between tiers as market

circumstances change. Kolkata, for example,
moved from a Tier III to Tier II city in 2007 to reflect
increasing levels of real estate activity. Similarly in
Chennai, real estate activity is growing so rapidly
that the city may be reclassified as a Tier I city in the
near future.

India30, 2008 3

India30 Executive Summary

This latest report from JonesLangLaSalles

World Winning Cities Research sets out
to provide fresh insights into the long term
real estate opportunities and risks across
Indias Tier III cities.
The research highlights 30 cities the
India30 which we believe will be the
focus of new real estate activity outside of
Indias major metros over the next decade.
The India30 will set the benchmark by
which other Tier III cities will be measured.
Our Real Estate Opportunity Map
(Figure 1, below) provides a high level
summary of our research and analysis of
macro-economic parameters, real estate
fundamentals, future growth drivers and
risk profiles across the India30.
We have short-listed 10 Tier III cities which
offer the strongest real estate potential
combined with lowest market risk:

Five cities stand out Ahmedabad,
Chandigarh, Kochi, Jaipur and Nagpur.
This group already have rapidly

growing real estate markets due to their

city size, market reach and connectivity.

A second group of mainly southern
Indian cities Coimbatore, Mangalore,
Thiruvananthapuram, Visakhapatnam,
and Goa also score well and have
growing consumer markets.
We believe that three key factors will affect
the long term economic success of Tier III
cities infrastructure, human capital and
governance. It will be those cities, led by
proactive visionary governments which
invest in infrastructure and education, that
will be best positioned to succeed. Whilst
affordability is currently driving the move
into Tier III cities, continuing to rely solely
on cost savings (relative to lndias major
metros) will not be sufficient to ensure
future long term growth.
Our research highlights that the risk
profile varies considerably in the India30,
reflecting the diversity of operating
conditions across India. However in

Fig 1: Real Estate Opportunity Map

Transparency

Lowest

Real Estate Potential

Highest

Goa
Mangalore

Ahmedabad
Jaipur

Kochi

Surat
Lucknow

Bhubaneshwar
Vadodara
Mysore

Thiruvananthapuram
Visakhapatnam
Coimbatore

Nagpur

Agra
Kanpur
Guwahati

Jalandhar
Amritsar
Bhopal

Vijayawada
Nashik
Indore
Ludhiana

Allahabad
Meerut
Varanasi
Patna

Jodhpur

Lowest Potential Highest Risk

Source: Jones Lang LaSalle, 2008

Chandigarh

Highest Potential Lowest Risk

Highest

Lowest

World Winning Cities

Launched in 2002,
JonesLangLaSalles World
Winning Cities research
programme is a multi-year
project designed to identify the
rising urban stars in emerging
markets in Asia, Central and
Eastern Europe, the Middle East
and North Africa.
Three major thought pieces on
the Indian real estate market
have been produced by World
Winning Cities

India Tier III Cities; The

Next IT Offshoring Locations
(2005) provides an
assessment of prospects for
17 Tier III cities as potential
locations for IT offshoring.
We identify five cities that are
best positioned to emerge as
major centres over the next
five years.

Investment Futures (2006)

assesses the opportunities
in the Indian Real Estate
Investment Market following
the relaxation of FDI
regulations, which has
generated substantial interest
from cross-border investors.

India Retail The India 50

(2007) sets out to explain
and predict the emerging
geography of Indian retail
activity and property
opportunities. We identify
and develop a new typology
for 50 cities that will be on
the radar screen of retailers,
developers and investors.

4 India30, 2008

The India30 will be the

focus of new real estate
activity outside of Indias
major metros and will be
the benchmark by which
other Tier III cities will be
measured

contrast to many perceptions, our research

indicates that levels of risk in some TierIII
cities are no different than in the main
metros. For example, Chandigarh, Kochi
and Nagpur have levels of real estate
transparency similar to Tier I and II cities.
The growth of the office markets across
Tier III cities is being driven by cost
advantages in real estate and labour. While
these cities may have robust and diverse
economies, the charge in the commercial
real estate market is often led by domestic
IT&ITES companies which have already
moved en masse into Tier III cities such
as Chandigarh, Jaipur, Ahmedabad, Kochi
and Thiruvananthapuram. With affordability
and talent pools high on the agenda,
many southern cities such as Coimbatore,
Kochi, Thiruvananthapuram, Mysore and
Mangalore, as well as Ahmedabad, Jaipur
and Chandigarh are attracting attention. Our
Affordability Index (Figure 2, below), which
is calculated by averaging Grade A office
rents across all business districts in a given
market, illustrates the vast difference in
commercial rents across Indias Tier I, Tier II
and Tier III cities. For example, in Peripheral
Business Districts (PBDs) of the India30,
office rents can be less than 20% of those
found in comparable areas of Mumbai.

Fig 2: Commercial Space Affordability Index

100
80
60
40
20

Vi Vi
sa ja
kh ya
a w
Copata ada
Ah imb nam
m ato
Al eda re
lah ba
ab d
ad
Bh M
a
ub ng Go
an al a
es ore
hw
a
AmSur r
rits at
A ar
M g
Gu ee ra
r
Lu wah ut
dh ati
V
i
ad an
Th
od a
iru
a
va
na KPat ra
nth a na
n
a p
Ja pur ur
lan am
Mydha
r
N sor
Va ash e
Lu ranaik
c s
Jo knowi
dh
Ja pur
Ch Bh ipu
an op r
dig al
a
Ko rh
N
Ba ag chi
Hy nga pur
de lor
ra e
ba
Ch Pund
en e
In na
Ko dorei
lka
D ta
Mu elh
mb i
ai

Tier I

Source: Jones Lang LaSalle, 2008

Tier II

Tier III

Domestic retailers and mall developers are

moving into less saturated Tier III cities. A
third of the 300 new malls expected to be
developed over the next five years will be
in Tier III cities. Large, growing consumer
markets point to the cities in Gujarat and
Kerala, along with Chandigarh, Jaipur, and
Lucknow continuing to receive significant
retailer attention. In particular, favourable
retail opportunities exist in Chandigarh, Kochi,
Surat, Visakhapatnam and Vijayawada.
In contrast to the office and retail sectors,
the hospitality sector is well developed
in some Tier III cities. Six cities stand
out Goa, Jaipur, Kochi, Ahmedabad,
Agra and Thiruvananthapuram. In Goa
and Agra, demand is driven by tourism,
and while tourism is also a primary driver
in Kochi, Thiruvananthapuram and Jaipur,
their strengthening corporate bases are
boosting business demand. Going forward,
we expect revenue from MICE services to
contribute a larger share of the pie, and a
greater level of differentiation to exist with
budget hotels, luxury resorts and other
hospitality destinations.
Sizeable opportunities exist within the
India30, but our analysis suggests that
prudent investors should be focusing on
particular sectors or development types
when venturing into Tier III markets. Riskaverse foreign investors will continue to
focus on the perceived safety of Tier I and II
cities, a trend that is being reinforced by the
global economic and financial uncertainties.
This may represent an opportunity over the
short term for domestic investors who are
well versed with specific Tier III markets
to selectively engage in lucrative projects.
Over the longer term, as the investment
communitys interest is refocused on Tier III
markets, we anticipate the India30 will offer
new opportunities for both domestic and
foreign real estate investors, developers
and occupiers.

India30, 2008 5

Introducing India30
The Indian commercial real estate market has
been in existence for barely a decade, but
during this time the country has witnessed
exponential growth in its real estate provision.
The overwhelming focus so far has been on
Indias major metros: Indias Tier I cities (Delhi,
Mumbai and Bangalore) and increasingly its
Tier II cities (Chennai, Hyderabad, Pune and
Kolkata). These top 7 markets are all now
regularly cited in world city rankings and
feature on the radar of cross-border occupiers,
investors and developers.
Yet as the Indian real estate market has
gradually matured, we have subsequently
witnessed the expansion of the commercial
real estate sector into Indias tertiary cities, a
trend that was first highlighted by
JonesLangLaSalle back in 2005 when we
identified the potential of Indias Tier III cities
as IT offshoring locations. 1 Since 2005, real
estate activity has progressively widened and
deepened into Tier III cities as service
companies have sought out cost-effective,
skill-rich business locations, and as retailers
have responded to the rapid increase in
consumer purchasing power beyond Indias
major metros.
1

Making sense of the real estate opportunities in a

country as large and diverse as India is a major
challenge for the real estate sector. Our India30
research aims to short-cut this process by
focusing on 30 cities which reflect the diversity of
opportunity and risk across India. We believe
these cities will set the benchmarks against which
other cities will be measured. The India30
includes all tertiary cities with populations over
1.5 million (16cities), together with 14 smaller
cities which have been selected on the basis of IT,
retailer and hotels activity. Some of these cities,
such as Ahmedabad, Chandigarh and Kochi
already have active real estate markets; others
are only just appearing on the radar screen.
The India30 still account for a relatively small
proportion of real estate activity (21% of modern
offices and 34% of shopping malls), but with 41%
of the countrys wealth, the potential of these
tertiary markets is clearly evident. Domestic
players continue to expand rapidly into Tier III
cities, and whilst foreign players are currently
adopting a cautious approach in todays
uncertain global economic climate, over the
longer term we anticipate the India30 will offer
new opportunities for both domestic and foreign
real estate investors, developers and occupiers.

Fig 3: Office Stock

India30
21%
Tier 1 Cities
46%
Tier 2 Cities
33%

Source: Jones Lang LaSalle, 2008

Fig 4: Shopping Mall Stock

India30
34%

Tier 1 Cities
49%

Tier 2 Cities
17%

Source: Jones Lang LaSalle, 2008

Fig 5: 4-Star and 5-Star Hotels

India30
46%

Tier 1 Cities
36%

India: The Next IT Offshoring Locations, Tier III Cities, Jones Lang LaSalle, 2005

Tier 2 Cities
18%

Source: Jones Lang LaSalle, 2008

Fig 6: Wealth Distribution

India30
41%

Tier 1 Cities
34%

Tier 2 Cities
25%

Parliament, Delhi

Source: Market Skyline of India,

Indicus Analytics

6 India30, 2008

State of the Nation Offices

Most Grade A office
space within the India30
is concentrated in just
6cities Ahmedabad,
Chandigarh, Jaipur,
Kochi, Nagpur and
Thiruvananthapuram

Market Position
Approximately 21 million sq m of Grade A office
space exists throughout the whole of India today,
broadly equivalent to the office stock in Chicago or
Washington DC. Of this, 80% of this space is
found in Indias seven Tier I and Tier II cities.
Grade A office space stock within the India30 is
estimated to be 4.7 million sq m. Most of this is
concentrated in just six cities Ahmedabad,
Chandigarh, Jaipur, Kochi, Nagpur and
Thiruvananthapuram and is largely located in
business parks and SEZs. New construction is
typically found in the peripheral areas of Indian
cities, where larger parcels of land are available
and connectivity is better. Many firms with larger
operations typically opt for built-to-suit campuses
in Tier III locations rather than speculative space.

Fig 7: Commercial Affordability vs. Mumbai (CBDs)

Vijayawada
Visakhapatnam
Coimbatore

< 10%

1015%

Bhubaneshwar
Patna Ahmedabad
Allahabad Mangalore Nashik
Amritsar Goa Ludhiana Mysore

1520%

Jalandhar Surat Thiruvananthapuram Guwahati

Nagpur Jaipur Bhopal Meerut Vadodara

2025%

Indore Jodhpur Varanasi Kochi Lucknow Agra

25% <

Chandigarh Kanpur

100%

Mumbai

Source: Jones Lang LaSalle, 2008

Why Tier III?

Affordability, both in terms of real estate and
labour, is the principal driver behind many
corporations having a presence in Tier III
markets. Grade A office rents can range from
2040% of the levels found in peripheral areas
of the large metros, such as Mumbai. Labour
costs are also substantially lower with many
Tier III locations having wage rates that are
the levels found in Tier I cities.
Affordability is particularly important to firms
that specialize in IT, ITES and BFSI back office
operations. These firms are the primary
occupiers of Grade A office space in Tier III
markets as they rely on the potential cost
savings which these markets provide to remain
competitive within their industries.
MNCs and larger Indian firms typically expand
into Tier III markets rather than set up
headquarters there. When well known firms such
as IT/ITES majors Wipro, Infosys, and
TataConsultancy Services (TCS) announce
their intention to venture into a new Tier III market
in India, they are usually followed by other firms
from a variety of industries who assume that the
potential of that market has been vetted and
vouched for by these market pioneers.
Many international and domestic firms are
using their Tier III operations to complement,
rather than replace, their existing work forces
in Tier I and Tier II locations. A common
misconception is that low skilled work is
carried out in Tier III locations and high end
functions remain in Tier I and Tier II cities
where talent is concentrated. However, cities
like Ahmedabad, Chandigarh, Kochi and Jaipur
are challenging the perception that skilled
labour cannot be found in Tier III cities.
Moreover, the southern states of Kerala,
Karnataka and Tamil Nadu have seen the
emergence of IT hubs in Mysore, Mangalore,
Coimbatore and Thiruvananthapuram as
companies tap into the local talent pools.

India30, 2008 7

Fig 8: Labour Costs in Tier I, II and III cities

1,000

2,000

3,000

4,000
5,000
6,000
Annual Salary (USD)
IT
ITES

7,000

8,000

9,000

Source: Ma Foi Management Consultants, 2006

Fig 9: Grade A Office Relative Rents in Peripheral Areas

100%
80%
60%
40%
20%
0%

mb
De ai
Ko lhi
lka
t
P a
Ch une
Ba enn
n a
Hy galo i
de re
ra
b
Ind ad
Na ore
gp
Ja ur
i
My pur
so
Ch Nas re
an hik
d
Ja iga
lan rh
dh
Ko ar
Th
Lu ch
iru
dh i
va
i
na B ana
nth ho
ap pal
Va uram
ra
Bh A nas
ub mr i
an itsa
es r
h
Jo war
Ma dhp
ng ur
al
Ka ore
np
Me ur
er
ut

MNCs in India have also started to expand into

TierIII markets. HSBC has set up 47 branch
offices throughout India and has a presence in
half of the India30 cities. Most MNCs, such as
Genpact (Jaipur), IBM Daksh (Chandigarh &
Visakhapatnam), Affiliated Computer Services
(Kochi) and Sutherland Global (Kochi), are not
as aggressive in their expansion and have
typically just one or two offices outside of Indias
major metros. Yet, the presence of multinational
corporations in Tier III cities is expected to
increase as labour and real estate costs in Tier I
and Tier II cities continue to rise and some
TierIII markets, such as Kochi, Ahmedabad and
Chandigarh, continue to mature towards having
the characteristics of Tier II cities.

Mumbai
Delhi (NCR)
Chennai
Bangalore
Pune
Hyderabad
Kolkata
Chandigarh
Mangalore
Indore
Vizag
Jaipur
Nagpur
Kochi
Coimbature
Ahmedabad

Mu

Infosys and TCS have been aggressive in

expanding their operations into Tier III
markets. Each now has major facilities in more
than half a dozen Tier III cities. Infosys,
headquartered in Bangalore, and TCS,
headquartered in Mumbai, have seen
exponential growth over the past 15years.
Faced with rising real estate and labour costs
in their respective Tier I markets, the firms
have ventured out to Tier III cities from where
much of their own workforces originate.

Tier I

Tier II

Tier III

Source: Jones Lang LaSalle, 2008

Fig 10: Corporate Expansion into the India30

Infosys Locations
in the India30

TCS Locations
in the India30
Ludhiana

Chandigarh
Jaipur

Lucknow
Ahmedabad
Vadodara
Bhubaneshwar

Mangalore
Mysore

HSBC Locations
in the India30

Bangalore
Thiruvananthapuram

Source: Company websites

Mumbai

Bhubaneshwar

Jodhpur

Chandigarh
Jaipur

Lucknow
Patna
Ahmedabad
Indore
Vadodara
Nagpur
Mumbai

Vishakhapatnam

Goa
Coimbatore
Kochi
Thiruvananthapuram

Mysore
Coimbatore
Kochi
Thiruvananthapuram

8 India30, 2008

Strong

City
Kochi
Chandigarh

Above Average

The top 10 most active markets within the

India30 are set out below. In northern India,
Chandigarh is India30s most active office
market, while Jaipurs office market is also
growing rapidly. Half of the top 10 are located in
Indias southern region Kochi,
Thiruvananthapuram, Coimbatore, Mangalore
and Mysore. Nagpur, which may not traditionally
be perceived to have an active office market
due to a relatively low level of IT/ITES
occupiers, has scored well due to relatively high
levels of Grade A office stock and a large office
workforce being employed in the city.

Fig 12: IT/ITES Penetration

Thiruvananthapuram

Average

Current Office Market Activity

In order to assess the current levels of office
market activity across Tier III markets, we
measured a variety of factors including the
Grade A office stock, the existence of SEZs,
the presence of key occupiers across the
IT&ITES industries and the number of staff
employed by these occupiers in each market.

Coimbatore

Bhubaneshwar
Vadodara

Jaipur
Ahmedabad
Goa
Indore
Lucknow

Below Average

Affordability, both in terms

of real estate and labour,
is the principal driver
behind many corporations
having a presence in
TierIII markets

Mangalore
Mysore
Bhopal
Nagpur
Nashik
Visakhapatnam
Agra
Allahabad

Fig 11: Current Office Market Activity Top 10

Amritsar

Chandigarh

Guwahati

Kochi

Jalandhar

Nagpur
Weak

Thiruvananthapuram
Jaipur
Ahmedabad

Kanpur
Ludhiana
Meerut

Coimbatore

Patna

Mangalore

Surat

Mysore
Ludhiana

Score
Low

Source: Jones Lang LaSalle, 2008

High

Varanasi
Vijayawada
Source: Jones Lang LaSalle, 2008

India30, 2008 9

Kochi Coastline

Sunil C.K., 2008

Kochi
A southern Indian city with a diversified local economy and over
1.5 million inhabitants, Kochi is seen as a prime example of the
potential of Indias Tier III cities. While the traditional sectors of
tourism, port activities and gold trading remain strong in Kochis
economy, the new economy sectors of IT/ITES and BFSI are
becoming increasingly active. Kochis growth into a commercial
hub is driven by its excellent connectivity, low labour costs and
low attrition rates, and lower cost real estate compared to Tier I
and Tier II cities.

As with most Tier III cities in India, Kochis resurgence is

occurring outside of the city centre in the peripheral areas of
Edapally and Kakkanad, where land is more plentiful. The
existing business parks of Infopark and the Cochin SEZ will be
complimented by the planned SmartCity and Cyber City
developments. Many Indian and international occupiers such
as Wipro, TCS, Cognizant, and Citibank have already
established a large presence in the city, with more firms also
planning to set up facilities.

For a more in-depth analysis of the Kochi real estate market, please see the latest city profile by World Winning Cities entitled Kochi India's Rising Urban Star.

10 India30, 2008

State of the Nation Retail

A gradual shift in focus
towards Indias smaller
cities has resulted in a
third of new malls having
been announced in
TierIII cities

Since the completion of the first shopping mall in

1999, India has seen a steady migration from
traditional formats into retail malls. As recently as 2002
there was only 100,000 sq m of shopping mall space,
but today there are no fewer than 120 malls totalling
3.9 million sq m. So far, shopping centre development
has been focused on Indias major metros, with
two-thirds of Indias shopping stock currently located
in Indias seven Tier I and Tier II cities.
The exponential growth of Indias retail sector is
expected to continue until at least 2010, by which
time the shopping centre stock could be as high as
8.25 million sq m. Whilst the major metros will
continue to account for most new retail
development, we are witnessing a gradual shift in
retailers and developers focus towards Indias
smaller cities. A third of the 300 new malls that are
to be developed in India over the next five years will
be located in Tier III cities.
Why Tier III?
While new retailers in India (both domestic and
international) are still focused on major metros,
expanding retailers and mall developers are now
selectively focusing on Tier III cities. In general, TierIII
cities offer favourable opportunities for retailers due to
growing consumer markets, lower property costs and
considerable latent demand for branded goods in the
larger Tier III cities. Most Tier III cities are also less

Fig 13: Current Retail Market Activity Top 10

Ahmedabad
Chandigarh
Ludhiana
Jaipur
Lucknow
Kochi
Indore
Amritsar
Surat
Jalandhar

Score
Low

Source: Jones Lang LaSalle, 2008

High

saturated than Indias metros, and are less likely to

face future competition from international players.
By our estimates, a quarter of the total expected
growth in the organized retailing sector will occur in
TierIII cities. These markets are witnessing strong
growth in income and, more significantly, changing
lifestyles and aspirations along with a fundamental shift
in the consumer mindset. For many smaller Tier III
markets, however, success for developers and retailers
is predicated upon capturing first mover advantage.
Hypermarkets are regarded within India as a
bellwether for organized retail development and,
thereby, retail growth. These larger format stores
cater to a class of consumers who are younger, more
urban and have a higher proportion of disposable
income. The robust expansion of hypermarkets into
Tier III cities is a testament to the confidence many
retailers have in the future potential of these smaller
cities. Hypermarket presence varies significantly
across the Tier III markets, with the highest
concentrations found amongst the larger Tier III cities.
Current Retail Market Activity
Considerable differences exist in the depth of retail
market activity across the India30. Our analysis of
these markets has taken into account both the
presence of key retailers as well as existing
shopping centres. Ahmedabad, as the largest city of
the India30 has the most extensive retail provision,
with characteristics closer to those of Tier II cities.
Several northern Indian cities also have active retail
markets notably Chandigarh, Ludhiana, Jaipur
and Lucknow due to high incomes and strong
brand awareness. Kochi and Surat are set to
witness high growth as new retailers enter these
markets and new retail projects come online.
While most Tier III markets are smaller and more
nascent in their development as retail destinations,
they have started to show signs of maturing and a
shift in momentum. Demand for space by retailers
is starting to slow in some markets as a result of a
better understanding of local consumers and a
realization that standardized formats will not
necessarily work in all markets.

India30, 2008 11

Developers in some Tier III markets are now

suffering from the effects of their overly optimistic
assumptions on retail space absorption. The issue
of too much supply of retail space isnt restricted to
only small Tier III markets. Ahmedabad, one of our
largest and most active retail markets is currently
suffering from a short term oversupply of retail

space. As with other Tier III cities, this has led to a

dampening of market transactions and a correction
of rental levels. While developers, occupiers and
investors should be astutely aware of the shift in
market momentum, we believe this to be a short
term phenomenon rather than a reflection of a
broader long term trend in Tier III markets.

Fig 14: Retail Momentum

City

Demand

Supply

Transaction
Levels

Rental
Values

Observations

Agra

Low

High

Low

High vacancy, exodus due to lack of consumption, supply concentrated in one area of city.

Ahmedabad

Low

Medium

Low

Short term oversupply, low consumption growth.

Allahabad

Medium

Low

Low

No high quality supply or developers. Nothing of quality currently in pipeline.

Amritsar

High

Medium

Medium

Satellite city that is a part of the Chandigarh-Ludhiana-Jalandhar retail circuit.

Bhopal

Medium

Low

Medium

Virgin market, new supply just opening up. Not many high quality developments.

Bhubaneshwar

Medium

Low

Low

Activity low, but interest levels from developers remains high.

Chandigarh

High

Medium

Medium

Looming supply boom (including Mohali). Rental rates, which were too high to begin with, are
now correcting.

Coimbatore

Medium

Low

Low

Large number of students and value shoppers. A mix of developers are operating in this market.

Goa

Low

Low

Low

Retailers are split on the consumption potential of this citys small population. Many announced
projects not getting off the ground. Tourism affects shopping mall development patterns.

10 Guwahati

Medium

Low

Low

Short term oversupply. Retailers are still exploring consumers choices in this market.

11 Indore

Low

High

Medium

Oversupply looming. Developers are not showing signs of construction slowdown.

Price-conscious consumers dominate the market.

12 Jaipur

Low

Medium

Low

No quality developments in place, though some are on the horizon. Oversupply concerns exist.

Medium

Medium

Medium

Eclipsed by events in Ludhiana. No notable projects on horizon.

14 Jodhpur

Low

Medium

Low

Initial buzz of activity. Is still a nascent market with limited potential due to demographics.

15 Kanpur

Medium

Low

Low

Despite a large population, there remain doubts about citys potential. No takers for brands as
market is dominated by value consumers. No quality developments.

16 Kochi

Medium

Medium

Medium

No quality developments in short term despite a big pipeline. Price correction looming.

17 Lucknow

Medium

High

Medium

Oversupply looming in some pockets. Rentals not sustainable due to exodus of retailers.

18 Ludhiana

Medium

High

Low

Oversupply looming. Occupiers waiting for prices to correct.

19 Mangalore

Low

Medium

Low

Proximity to the university town of Manipal leads to high number of student shoppers.
Demographics do not support rental values.

20 Meerut

Low

Medium

Medium

Market is largely untested so far. Demographics do not support high retail growth.

21 Mysore

Low

Medium

Medium

Despite a few quality developments, market is still not fully tested by brands and national retailers.

22 Nagpur

Medium

High

Medium

Oversupply. Success of MIHAN is critical for the development of the city and its retail market.

23 Nashik

Medium

Medium

Medium

Large population base with price-conscious consumers. Market is balanced in terms of

supply and demand.

24 Patna

Low

Medium

Low

Despite large population, only a few brands are present. Activity levels are low. Retailers keep a
close eye on political situation.

25 Surat

High

Medium

High

Centre of Indias diamond industry. Relatively high number of affluent consumers. Market is still
largely untested.

26 Thiruvananthapuram

Medium

Medium

Low

Most brands present. Demand currently exceeds supply.

27 Vadodara

Medium

High

Low

Brands present but price-conscious market precludes multiple outlets. Some quality developments
exist. Oversupply looming.

28 Varanasi

Low

Low

Low

Untested market with low levels of activity currently.

29 Vijayawada

Medium

Medium

High

Solid brand presence with small but consistent level of retail activity.

30 Visakhapatanam

Medium

Medium

High

Stable retail activity and good brand presence.

13 Jalandhar

Source: Jones Lang LaSalle, 2008

12 India30, 2008

Gallops Mall, Ahmedabad

Ahmedabad
As the financial capital of the state of Gujarat, Ahmedabad is
the seventh largest metro in India and has a population of over
5.3 million, putting it in the same league as Bangalore,
Hyderabad and Pune. Ahmedabad has developed into one of
the hottest retail markets in all of India due to a large consumer
base that is wealthy, brand savvy and disposed to spending, all
of which has led the city to witness a flurry of retail
development activity recently.

The number of households in Ahmedabad that fall into the SEC A or SEC
B group is higher than virtually any Tier II or Tier III city in India. Many
international and domestic brands such as Nike, Reymonds, Pantaloons
and Wills Lifestyle have already established a presence in the city, either
along CG Road, the main high street in the city, or at one of the six
operational malls that exist in the city. This 170,000 sq m of mall space is
not enough to satisfy demand from retailers and an additional six malls
totaling 280,000 sq m is expected to come online by 2010.

India30, 2008 13

State of the Nation Hotels

Market Position
In India today, there exists approximately 185
5-star and 5-star deluxe hotels with over 31,000
rooms. While this is considerably less than the
level found in China (which has more than 300
5-star hotels), it exceeds the 114 5-star hotels
found in Thailand, an economy a fifth of the size
of India but where the hospitality infrastructure
is considerably more developed. This serves to
highlight the strong growth potential of Indias
hospitality sector which is now witnessing very
robust growth with, for example, a 13%
year-on-year increase in international air
passengers during 20062007.
In contrast to both the offices and retail
sectors, which are highly concentrated in
Indias Tier I and II cities, almost half of Indias
5-star and 5-star deluxe hotels are found in
Indias Tier III cities. Of these, a significant
proportion is found in just five locations Goa,
Jaipur, Kochi, Agra and Ahmedabad largely a
reflection of Indias geography of high-end
tourism. This distribution is also in strong
contrast to China, where only 13% of 5-star
hotels are found in Tier III cities.
Fig 15: 5-Star Hotels

Most major international hotel groups already

have a firm, but limited, presence in India. The
aggressive expansion into numerous Indian
markets, including many Tier III cities, by
multinational hoteliers such as StarwoodHotels
& Resorts and Marriott International will result in
international operators having a greater market
share than their domestic counterparts within
the next 3 years.

Nearly half of Indias

5-star and 5-star deluxe
hotels are found in
TierIII cities

Fig 16: Current Hotel Market Activity Top 10

Goa
Jaipur
Kochi
Ahmedabad
Thiruvananthapuram
Agra
Chandigarh
Lucknow
Jodhpur
Coimbatore

Score
Low

High

Source: Jones Lang LaSalle, 2008

India

Fig 17: Foreign Tourists into India

Tier 1 Cities
38%

India30
45%

6,000,000

30%
25%

5,000,000
Tier 2 Cities
17%

China

15%
10%

3,000,000

Tier 3 Cities
13%

Tier 2 Cities
38%

20%
4,000,000

5%

2,000,000
Tier 1 Cities
49%

0%
1,000,000
0

-5%
-10%
1998

1999

2000

2001

2002

Foreign Tourists
Source: Jones Lang LaSalle, 2008

Source: Government of India, Ministry of Tourism

2003

2004

2005

% Change Y-O-Y

2006

2007

14 India30, 2008

Two of the most active domestic hotel operators

in India are the Taj Hotels and ITC Hotels. As
Indias leading operators of 4- and 5-star hotels,
both organizations have ventured deep into
TierIII markets. Taj Hotels, in particular, has a
footprint extending into over half of the India30.
Why Tier III?
Increased business travel (due to strong economic
growth and improving connectivity), higher
international and domestic tourism and the
emergence of low cost airlines are fuelling strong
demand for hotel accommodation and MICE
facilities across Indias Tier III cities.Tourism is
expected to be the primary driver of the hospitality
industry across Indias Tier III cities, focused on
Indias top international tourist destinations such
as Goa, Jaipur, Agra and Thiruvananthapuram.
Many Tier III cities offer massive potential across a
range of tourist activities from cultural heritage and
historic sites in Jaipur and Agra, Ayurveda and
wellness spas in Kochi and Thiruvananthapuram,
beach resorts in Goa, eco-tourism in Coimbatore
and religious tourism in Varanasi. Indias Ministry
of Tourism is also actively promoting and providing

support for rural tourism, medical tourism, cruise

tourism and adventure tourism in numerous
locations throughout the country.
Current Hotel Market Activity
The India30 have been evaluated across a set
of parameters that include the presence of
business & luxury class hotels, the size of the
hospitality service sector, business demand,
and leisure and business travellers. Goa
emerges as the clear front runner; while it does
not lead the India30 in terms of business
demand, Goa stands head and shoulders above
the India30 in terms of the number of hotels and
the size of its local hospitality sector.
A similar situation exists, though to a lesser
degree, for Jaipur and Agra, although Jaipur
benefits from higher levels of business demand
than does Goa. The Kochi and
Thiruvananthapuram markets are driven by both
high levels of foreign tourists as well as
burgeoning local IT/ITES industries. The
Ahmedabad and Chandigarh markets are fuelled
primarily by their strong local commercial activities.

Fig 18: Hotel Presence in India30

Starwood Hotels
in the India30

Taj Hotels
in the India30
Chandigarh

Agra

Jodhpur

Ahmedabad

Ahmedabad
Vadodara
Surat
Nashik

Mysore
Coimbatore
Kochi

Lucknow
Varanasi

Vijaywada
Vishakhapatnam

Vishakhapatnam

Taj Lake Palace, Udaipur

Jaipur
Agra

Goa
Mangalore
Kochi
Thiruvananthapuram

Source: Company websites

Jaipur

India30, 2008 15

Bamboo huts in Goa

Goa & Jaipur

The cities of Goa and Jaipur are the top two tourist destination
within the India30. Both have international airports and local
economies that are geared towards tourism (although Jaipur has
a more diverse economy than Goa). Both are also key stops
along routes for some of Indias most well known luxury trains.
Goa is Indias most well known beach destination and attracts
many international holidaymakers from Asia, Australia and Europe.

Jaipur is part of the Golden Triangle tourist circuit (along with

Delhi and Agra) and has many historic sites.
A third of all 5-star, 4-star and heritage hotels in Tier III cities
are found within Goa and Jaipur. Excellent connectivity (air,
road & rail) and established tourism services have earned Goa
and Jaipur the top 2 spots for tourism infrastructure amongst
Tier III cities.

16 India30, 2008

A Short History of Real Estate Investment in India30

Regulations on Foreign Direct Investment in
India were liberalized in March 2005. Since
then, approximately USD 11 billion has been
invested in the India real estate market. A
great majority of that, approximately
USD4.5billion, flowed into the country during
2007. Despite the turmoil in global capital
markets that have existed for the past year,
investors have continued to look to India for
opportunities in the real estate sector, although
at a slowing pace.

Raising public debt in India has historically

been a difficult task. With a reduced supply of
domestic private debt, international capital
flows ebbing and the cost of borrowing rising,
Indian developers are increasingly utilizing
private equity to fund new projects. Of the
estimated 150 private equity funds operating in
India, two-thirds have operations on the
ground and are actively sourcing and
completing investment transactions throughout
India, albeit at a slower rate than in 2007.

Fig 19: Announced Investments in India (1H 2008)

Fig 20: Noted Investments in Tier III Markets by

Real Estate Sector

India30
4%
Tier 2 Cities
33%

Tier 1 Cities
63%

Retail

Ahmedabad Chandigarh

Hotels

Goa Jaipur

IT Parks/SEZs

Nagpur Kochi Jaipur

Mixed Developments

Indore Visakhapatnam

Source: Jones Lang LaSalle, 2008

Source: Jones Lang LaSalle, 2008

Fig 21: Investment Characteristics

Parameters

Tier I & II Cites

Tier III Cities

First mover advantage

Not necessary

Critical

Location within municipal limits

Not necessary

Critical

Deal size

Medium or large
(starting at USD 10 million)

Small
(up to USD 10 million)

Deal structure

Ranging from simple equity to preferred

returns involving substantial premium

Prefer entry at cost and/or capital

protection with low premium
Funds want to see a clear exit in
45years

Project size

Ranging from barely FDI compliant to

double digit acres

Many times higher than 100 acres

Occupier commitment
(pre-sale or pre-lease)

Preferred

Strongly preferred

Strong partnership with quality

developer/promoter

Important

Critical

Source: Jones Lang LaSalle, 2008

India30, 2008 17

Tier III Investment Climate

A combination of recent events has caused
international investors, namely private equity
funds, to shy away from Tier III markets
recently. As risk is being re-priced globally,
managers of foreign capital are seeking
exceptionally high rates of return in order to
continue to invest in Tier III markets. At the
same time, real estate markets in Tier I and
Tier II cities have started to rationalize and
offer more reasonable project valuations.
While Indias seven Tier I and Tier II markets
offer a lower rate of return, the perceived
stability they offer relative to Tier III cities has
been instrumental in convincing virtually all
private equity funds to stick with Tier I and
TierII markets for the time being.
However, in Jones Lang LaSalles 2008 Global
Real Estate Transparency Index, Indian Tier III
cities achieved transparency score close to
their Tier I and Tier II counterparts. Indian
TierIII cities ranked 62nd out of 82 global
markets surveyed and scored higher than many
other favoured investment destinations around
the world such as Turkey and Vietnam. Indias
Tier III cities also scored higher than Chinas
Tier II and Tier III cities. Moreover, the
transparency gap between Indias Tier III cities
and its large metros is expected to narrow in
the future as these cities go through the same
evolution as did their Tier I and Tier II
counterparts nearly a decade ago.
The risks and opportunities that exist in Indias
Tier III markets are very different than in larger
Tier I and Tier II metros. Indeed, the very
nature of investment transactions is unique
and requires a different approach than that of
other Indian markets. Generally speaking,
finding the right partner, having a first mover
advantage, and locating projects within the city
limits are a few of the key attributes of
successful Tier III projects, especially those in
smaller, more nascent markets.

Outlook
Tier III markets can vary considerably in their
levels of economic maturity and real estate
development, and hence the opportunities
within these markets can also be quite disparate
in nature. Furthermore, these opportunities may
not be consistent across all real estate sectors.
Prudent investors need to be focused on a
particular sector or development type when
venturing into Tier III markets.
While foreign capital will continue to focus on
safer Tier I and Tier II markets, this may
represent an opportunity for domestic
investors. As we noted in our recent report
Real Estate Transparency in India 4% of the
total amount of investment funds (domestic
and international) that have been announced
in India in 1H 2008 are expected to go to
TierIII cites. While the immediate future may
see a decline in Tier III cities shares of
investment funds, we expect this trend to
reverse over the long term as Tier III markets
continue to offer better risk adjusted returns
than larger Indianmetros.
A bright spot on the horizon for Tier III markets
is the expected introduction of real estate
mutual funds into Indian markets in the near
future. Allowing participation from individual
investors would not only deepen real estate
markets in India but also increase investor
focus on the 35 cities that the Securities and
Exchange Board of India, the nations market
regulator, has identified as acceptable
destinations for investment.
Of the India30, 21 cities along with all Tier I
and Tier II cities are on the list of 35 cities
that have been green-lighted by the SEBI.
Not all cities will necessarily be able to take
advantage of this initiative as finding
investment grade assets in many Tier III cities
remains a challenge, especially outside of the
residential sector.

18 India30, 2008

Prozone-Liberty
Liberty International, a UK-based property company with
investments of 8.6 billion (USD 15.3 billion), entered into a
joint venture with Provogue, a premier Indian apparel
manufacturer and retailer. Liberty acquired approximately 25%
of Provogues retail infrastructure subsidiary Prozone
Enterprises in 2007 for INR 2.02 billion (USD 43 million).
The joint venture, named Prozone-Liberty, will focus on
developing and managing shopping centres in four Tier III cities:

Aurangabad, Indore, Jaipur and Nagpur. These projects,

including a 97,500 sq m mall under construction in Aurangabad,
will all be FDI compliant.
The partnership allows Prozone to access the knowledge and
best practices of Liberty while allowing Liberty to gain from
Prozones knowledge of Indian retailers and the emerging
organized retail sector in India.

India30, 2008 19

Future Drivers
While the drivers of city success are diverse
and complex, and there are many different
winning formulae that can catapult a city onto
the global arena, we have identified three
broad sets of drivers infrastructure, human
capital and governance which we believe
represent the critical elements necessary for
growth amongst Indian cities.
Infrastructure
Infrastructure is widely regarded as the single
biggest challenge to development in India.
After decades of neglect, the Indian
government is now scrambling to address the
infrastructure deficit that exists throughout the
country. The multitude of projects that have
been identified throughout the country will cost
billions of rupees and take decades to
execute. Special Economic Zones and private
business parks, which offer quality and reliable
power, water and roads, are some of the
measures that government and industry has
adopted to address the need for quality
infrastructure in the short term. Such facilities
are found in every corner of the country
offering even the smallest of cities the
opportunity for economic advancement.

driven by tourism. Five of the India30 cities have

major sea ports and an additional nine have access
to smaller ports nearby. All of the India30 cities are
connected to at least one national highway and
nineteen are connected to at least one major road
corridor such as the Golden Quadrilateral. Yet only
six of the India30 have any existing or planned rapid
transit systems, something that is vital to cope with
the traffic congestion that plagues all of Indias cities.
Fig 22: Connectivity Index
Kochi
Ahmedabad
Goa
Lucknow
Thiruvananthapuram
Coimbatore
Jaipur
Mangalore
Guwahati
Vadodara
Agra
Kanpur
Amritsar
Visakhapatanam
Varanasi
Bhubaneshwar
Surat
Chandigarh
Nagpur
Allahabad
Indore
Jalandhar
Vijayawada
Patna
Ludhiana
Bhopal
Nashik
Jodhpur
Meerut
Mysore

High
Above Average

Average

Below Average

Low

Source: Jones Lang LaSalle, 2008

As part of our analysis on infrastructure, we have

developed a Connectivity Index to assess a citys
linkages, both domestically and internationally,
which takes into consideration airport, sea port,
road and rail infrastructure. Our analysis indicates
that most of the India30 are surprisingly well
connected. Kochi, Ahmedabad and Goa scored the
highest amongst their peers due to their exceptional
performance across all indicators. They were
followed by Lucknow, Thiruvananthapuram,
Coimbatore, Jaipur and Mangalore, all of which
placed above average by scoring well in air and
road indicators plus one additional parameter such
as sea port or rail access.
Twenty-six of the India30 have airports, twelve of
which serve international destinations. This bodes
well for cities such as Goa, Jaipur, and
Thiruvananthapuram whose economies are primarily

Fig 23: Higher Education Institutes

Visakhapatnam
Thiruvananthapuram
Lucknow
Coimbatore
Mysore
Nagpur
Meerut
Ludhiana
Jaipur
Bhopal
Ahmedabad
Indore
Kanpur
Bhubaneshwar
Mangalore
Nashik
Amritsar
Agra
Vijayawada
Allahabad
Varanasi
Jalandhar
Kochi
Patna
Jodhpur
Surat
Vadodara
Guwahati
Chandigarh
Goa

Score
0

Source: Jones Lang LaSalle, 2008

50

100

150

200

20 India30, 2008

Indias telecom sector is one of the worlds most

dynamic, adding a record number of mobile
subscribers month on month. The entry of private
players and the existence of strong regulatory
bodies have put in place the necessary elements
to ensure continued robust growth and
development. While India has witnessed stronger
telecom penetration in its urban vs. rural areas,
telecom needs, including mobile phones, fixed
land lines and broadband internet, are rapidly
being addressed throughout the country.
Unlike telecom, utilities are a major area of
concern. Reliable and affordable electricity is a
major concern in most Tier II and Tier III cities,
some of which routinely face power cuts due to
load shedding. Despite most states in India
being net importers of electricity, there seems
to be no quick fix for this problem. Politics,
environmental issues and even unreliable
monsoons can all make a significant impact on
the availability and cost of power in India.

Human Capital
The sunrise sectors of Indias economy
(IT,biotechnology, pharmaceuticals and
semiconductors) are driven as much by skilled
workers as by any other factor. Indeed, the
availability of human capital is a key driver of
the success of any city. Educational institutes,
the factories which produce skilled labour for
the Indian economy, are found throughout
TierIII cities in India. When cities were scored
on availability of higher educational institutes
on a per capita basis, southern cities
(Thiruvananthapuram, Visakhapatnam,
Mysore, Coimbatore and Mangalore)
performed exceptionally well.
Kerala, a state in southern India with a literacy
rate above 90%, far outperformed the national
average which sits at just 65%. Its two
representatives in the India30,
Thiruvananthapuram and Kochi, are both
developing into IT hubs, due in large part to
the availability of skilled labour.
When the availability of higher educational
institutes in relation to population is assessed
at a state level, Karnataka stands out. Mysore
in particular is a key educational hub with a
large number of high quality medical and
engineering colleges located in the city.
Graduates from these institutions have helped
fuel the growing biotech and semiconductor
industries, and have positioned Karnataka as
the leading exporter of software technology
amongst Indian states.
The quality of higher education institutes in
India, rather than the sheer quantity, is a
critical area of focus as employers are
increasingly looking for highly skilled workers
with specialized skills to compete in the global
market place. A great majority of the campuses
of Indias famed Indian Institutes of
Technology, Indian Institutes of Management,
and the Indian School of Business are found in
Tier III cities, including 9 of the India30.

India30, 2008 21

Governance
Governance can make or break a city.
Competitiveness amongst Indian cities is often
dictated at the state level where most strategic
policy decisions are rendered. It is often the
foresight and tenacity of state governments
which precipitate success at the city level.
For example the governments of the states of
Andhra Pradesh and Kerala, are very active in
promoting investment and tourism in their states.
Andhra Pradeshs government has gone beyond
simply providing incentives for companies to
move into the state. It now routinely performs
international roadshows where it clearly
articulates the advantages of doing business
and investing in the state, notably in the cities of
Hyderabad and Visakhapatnam. The Kerala
government is one of the most active in India in
promoting tourism. Its Gods Own Country
marketing campaign, coupled with its investment
in tourism infrastructure, has boosted
international and domestic tourism and spurred
development activity, notably in the city of Kochi.
The role that governance plays in determining the
success of cities by drawing in new businesses
cannot be overstated. Whilst it is common for
states in India to vie for large industrial projects,
only a few governments such as those of
Gujarat and Andhra Pradesh have taken
measures to establish a business-friendly climate.
A comprehensive approach that addresses key
issues, such as tax policy, and has a forward
looking vision will be the strongest determinant of
success for any city in India.

Developing Industry Clusters

Given the infrastructure deficit that exists
within India currently, many industries find it
necessary to form their own economic
ecosystems where specialized resources and
partners are concentrated. This holds true for
small scale industries in particular. While much
attention has been dedicated to Special
Economic Zones, industrial clusters are as
critical to the success of many cities.
Clusters of a particular industry do not limit
themselves to just one location. Indias
pharmaceutical industry, for example, has
clusters spread throughout nine states and
18cities. The states of Gujarat, Maharashtra,
Andhra Pradesh and Goa have been especially
active in establishing the necessary
ecosystems to support pharmaceutical
clusters. The cities of Ahmedabad and Goa
have benefited in particular with
pharmaceutical manufacturing and R&D
services being firmly established there.
Jaipur and Ahmedabad stand out among the
India30 in terms of the number of industrial
clusters. While Ahmedabad is widely regarded
as having a small yet diversified economy,
Jaipur is considered by most to only be a hotbed
for tourism. Yet the city has a wide variety of
clusters including electrical equipment,
garments, jewellery/gems and handicrafts.
Clusters in Ahmedabad, in contrast, were
mostly of an industrial nature and produced
high value products such as pharmaceuticals,
industrial machinery, and electronics.

22 India30, 2008

Indias Key
Transport Infrastructure

Jammu and Kashmir

Amritsar
Ludhiana

Himachal
Pradesh
Jalandhar

Punjab

Chandigarh
Uttrakhand
Haryana
Delhi
Meerut

Rajasthan
Jaipur

Jodhpur

Arunachal Pradesh

Uttar Pradesh
Agra
Lucknow

Sikkim

Kanpur

Varanasi

Ahmedabad

Bhopal

Gujarat

Madhya Pradesh

Surat

Mizoram

Kolkata
Chhattisgarh
Orissa

Nagpur

Nashik

Paradip
Bhubaneshwar

Maharashtra

Pune

Tripura

West Bengal

Vadodara

Mumbai

Nagaland

Manipur

Jharkhand

Indore

Assam

Meghalaya

Patna

Allahabad
Kandla

Guwahati

Bihar

Visakhapatnam

Hyderabad

Golden Quadrilateral
Vijayawada

North-South Corridor
East-West Corridor

Goa

International Airport

Goa
Karnataka

Andhra Pradesh
Ennore

Mangalore
Mysore
Kerala

Domestic Airport
Major Sea Port

Bangalore

Chennai
Tamil Nadu

MIHAN at Nagpur
Coimbatore
Kochi
The Multi-modal
Tuticorin
International Hub
Airport at Nagpur (or
Thiruvananthapuram
MIHAN) is a mega project
designed to take advantage of
Nagpurs central location within India
and Asia. The project, administered by the Maharashtra
government and funded through government sanctions and
private lending, is spread over 4,354 hectares. Reliable
infrastructure will be provided through measures such as a
captive power plant and water and sanitation systems.
When completed, the MIHAN will encompass a multi-modal
passenger and cargo hub, a new rail and road terminal, and an SEZ

that will cater to, among other industries, specialized health services
in order to promote health tourism. A new residential township,
international school, and golf course will also be developed.
MIHANs impact to the economy of Nagpur and its real estate
market were immediately evident. Boeing has decided to invest
USD 100 million in Nagpur to develop its regional maintenance,
repair and overhaul (MRO) facility. Over 3,000 new jobs are
expected to be created, and other aviation companies have
also started to explore Nagpur for their own regional MROs. All
of this has led to a real estate boom in Nagpur which has seen
leading Indian IT firms such as Satyam and L&T Infocity
purchasing land to develop IT parks inside the SEZ,
encouraging real estate developers to begin planning for a
wave of new residential development in adjacent areas.

India30, 2008 23

Assessing Risk

1
2
3
4

availability of market information

planning and building codes
availability of public records
property rights

Tier I
Tier II

Market Risk
In order to gauge market risk at a city level, we
have used real estate transparency as a proxy
for real estate risk. JonesLangLaSalle has
been measuring real estate transparency
across the globe for a number of years. We
have adapted our Global Transparency Index
for the India market, and using a survey of
market experts, have scored cities based on
the following criteria:

Fig 24: Rapid Transit Systems

(Existing or Planned)
Metro

Bus

Delhi

Mumbai

Bangalore

Chennai

Hyderabad

Kolkata

Pune

Ahmedabad

Tier III

As anyone who has conducted business in

India is likely to agree, there are a myriad of
risks that one needs to be aware of. The risk
profile of each of Indias cities can vary
considerably based upon a variety of
elements. For the purpose of our analyses, we
have grouped these elements into three broad
categories: market risk, political & social risk
and environmental risk.

Bhopal

Indore

Jaipur

Kochi

Patna

Source: Jones Lang LaSalle, 2008

Fig 25: LEED Certified & Registered Projects

All cities were graded from A, indicating the

highest level of transparency in India, through to
E, which indicates the most opaque markets.
Predictably, Tier I and Tier II cities all scored in
the top two transparency grades. Of greater
surprise was that a few Tier III cities also
scored in the top grades notably
Chandigarh,Kochi and Nagpur.

India30
8%

Tier 2 Cities
40%

Tier 1 Cities
52%

Source: Indian Green Building Council

Fig 26: Real Estate Transparency

Highest

Lowest

Chandigarh, Delhi, Kolkata, Pune

Bangalore, Chennai, Hyderabad, Kochi, Mumbai, Nagpur

Ahmedabad, Coimbatore, Indore, Jaipur, Ludhiana, Nashik, Thiruvananthapuram, Vijayawada, Visakhapatnam

Amritsar, Bhopal, Bhubaneshwar, Goa, Jalandhar, Jodhpur, Mangalore, Mysore, Vadodara

Agra, Allahabad, Guwahati, Kanpur, Lucknow, Meerut, Patna, Surat, Varanasi

Source: Jones Lang LaSalle, 2008

India has shown

consistent improvement in
market transparency over
the past 6 years. Amongst
Indian cities, a few Tier III
cities (Chandigarh, Kochi
& Nagpur) score in the
top grades

24 India30, 2008

We also observed a correlation between

transparency and levels of real estate activity
across all three real estate sectors (office,
retail and hotels). Cities which had higher
levels of transparency also tended to have
more active real estate markets.
However, having a low level of market
transparency doesnt necessarily preclude a
city from having high real estate activity within
a single sector. While Goa and Jaipur did not
score particularly well in our Transparency
Index, they do have the highest hotel market
activity. The same holds true for Ludhiana
(retail) and Thiruvananthapuram (offices).
On a national level, India has shown consistent
improvements in market transparency over the
past six years.
In Jones Lang LaSalles 2008 Global Real Estate
Transparency Index, Indias prime markets
ranked 50th out of 82 markets globally. The same
survey revealed relatively narrow differences in
transparency levels between Indias Tier I, II and
III cities, particularly when compared to
differences within China. This bodes well for
Indias smaller cities which are looking to lure
international investors, developers and occupiers
away from the majormetros.

Political & Social Risk

While many opportunities are available across
Indian real estate markets, Indias political and
social landscape is a blend of diverse ideologies,
religions and cultures. Despite offering a more
stable environment for business and investment
than other South Asian countries, India is not
immune to the political upheaval, terrorist
activities and economic strikes that are found
within the region.
Corruption, an issue that continues to be a
hindrance to economic and social development
across the country, is being fought by
governments on both state and national levels.
These efforts are yielding various levels of
success with the states of Andhra Pradesh,
Chandigarh, Punjab and Maharashtra being
noted by Transparency International for having
the most recent success.

India30, 2008 25

Environmental Risk
Environmental risks in India are widespread and
not limited to specific regions or cities. Poor
infrastructure and lax enforcement of existing
building codes and pollution standards often
serve to compound existing problems.
Earthquakes, flooding and pollution are some of
the leading environmental issues that Indiafaces.
The subcontinent is a seismically active
region. 25 of the 30 cities in our survey sit in a
seismic activity zone of moderate to high
levels. While construction codes in India do
require builders to employ earthquake
resistant technology in their projects, these
laws are not effectively enforced. The situation
is expected to improve as international
investors and occupiers demand better
compliance from the pan-national and
international developers who are taking up
projects in Tier III cities.
The monsoon rains, vital for Indias agriculture
and power generation, can also wreak havoc
in both rural and urban environments. Even
large metropolises such as Mumbai lack the
infrastructure to cope with this recurring
phenomenon, leading to productivity loss
eachseason.
Fig 27: Seismic Zones in India

Srinagar

Delhi
Jaipur
Ahmedabad
Mumbai

Sustainability initiatives are gaining traction in

India, and the green building movement, while
small, is steadily growing. There currently
exists over 500,000 sq m of green building
space in India with an additional
10millionsqm estimated to be under
construction or awaiting certification.
Indias first green building was developed in 2001.
Since then, the number of registered and certified
green buildings in the country has steadily
increased. It is encouraging to see that while only
3% of LEED certified green buildings currently
exist outside of Tier I and Tier II cities, this figure is
expected to rise up to 8% as registered projects
located in 11 Tier III cites (six of which are in the
India30) become LEED certified.

Jorhat
Guwahati

Lucknow

Bhuj

Pollution of Indias air and water is becoming

an increasing concern. As consumer
purchasing power rises and the price of
automobiles falls, more and more Indians are
purchasing their first automobile. The resulting
air pollution and traffic is reaching alarming
levels, particularly in smaller cities which do
not currently have adequate public transit
systems. While only six cities have an existing
or planned bus rapid transit system, four of
these are India30 cities. Conversely, mass
rapid transit systems (metros) can be found in
six of the seven Tier I and Tier II cities, but
only in two of the India30 cities.

Kolkata
Hyderabad Vishakhapatnam

Chennai
Thiruvananthapuram

Zone I (Least Activty)

Zone II (Low Activity)
Zone III (Moderate Activity)
Zone IV (High Activity)
Zone V (Highest Activity)

Source: Geological Survey of India

Kerala Backwaters

26 India30, 2008

Chandigarh Technology Park, Chandigarh

Chandigarh
Chandigarh was one of the first Tier III cities to be on the radar
screen of occupiers, developers and investors in India. The city,
which was first recognized by World Winning Cities in 2005 for
its growth potential, is the only Tier III city to score an A rating
in our India Transparency Survey.
With only 114 sq km of total area, the union territory of
Chandigarh functions as a municipality within itself, one that is
friendly to business and real estate investment. Possessing

some of Indias best infrastructure and being in close proximity

to Delhi have helped Chandigarh attract keen interest from
domestic and international investors.
While the growth of the city has been challenged in recent
times by other tertiary markets such as Jaipur and Kochi,
Chandigarh continues to have a robust economy with
corporates such as Infosys, TCS, Dell, IBM Daksh and Intel all
having a major presence.

India30, 2008 27

Future Hotspots Offices

Economic development and real estate activity
has to date been strongly concentrated in Indias
largest metros. Going forward, however, Tier III
cities are expected to reap greater benefits and
play a larger role in Indias growth story. The
attractiveness of these tertiary markets will grow
as increasing labour costs and real estate costs
continue to erode the appeal of larger metros.

When market transparency is overlaid upon sector

potential, three clear winners emerge
Chandigarh, Kochi and Nagpur. While these more
established office markets do not necessarily offer
the strongest growth potential among the India30,
they do present markets of significant size, offer
economies that are robust and provide relatively
stable environments for real estate development.

In evaluating the growth potential of the office

sector in the India30, we have examined a variety
of factors including office space affordability,
availability of human capital, connectivity and
overall attractiveness for the IT/BPO sector.

Fig 28: Office Market Future Hotspots

As Indias economy and

real estate markets
continue to develop,
TierIII markets are
expected to play a
greater role

Ahmedabad
Kochi
Bhubaneshwar
Jaipur

Coimbatore
Mysore
Mangalore
Score

Thiruvananthapuram
Low

High

Source: Jones Lang LaSalle, 2008

Fig 29: Office Sector Opportunity Map

Transparency

Highest

Lowest

Lowest

The cities with the strongest potential differ

considerably in their levels of market maturity.
Ahmedabad and Chandigarh are the most mature
within the group and have large, diversified local
economies that drive their commercial real estate
markets. Jaipur, Kochi and Thiruvananthapuram follow,
with robust local economies and a growing occupier
base. Other winners such as Bhubaneshwar, Nagpur,
Coimbatore, Mysore and Mangalore exhibit solid
potential but are still primarily driven by cost.

Nagpur

Highest

Bhubaneshwar

Ahmedabad
Jaipur

Surat

Mysore
Mangalore
Goa

Coimbatore
Thiruvananthapuram
Visakhapatnam

Lucknow
Kanpur
Agra

Vadodara
Bhopal

Vijayawada
Nashik
Indore
Ludhiana

Allahabad
Meerut
Varanasi
Patna
Guwahati

Jalandhar
Amritsar
Jodhpur

Lowest Potential Highest Risk

Source: Jones Lang LaSalle, 2008

Kochi
Nagpur

Chandigarh

Highest Potential Lowest Risk

Cities from each region of India are represented in

our top spots. Coimbatore, Ahmedabad, Goa,
Mangalore and Bhubaneshwar benefited from high
levels of affordability. With the exception of Mysore,
all cities are well connected with an international or
domestic airport. Southern cities were buoyed by
large talent pools as was Ahmedabad. Jaipur, which
is traditionally recognized as a tourist destination,
demonstrated that it has the right mix of ingredients
to support a robust office market.

Chandigarh

Office Potential

The top 10 cities with the strongest office market

potential include several cities that already have an
active office market, such as Chandigarh, Kochi,
Nagpur, Thiruvanathapuram, Jaipur and
Ahmedabad. It also includes a number of locations
that are not yet on the radar of most office occupiers.
Bhubaneshwar, Mysore, Coimbatore, and
Mangalore all have low levels of current activity,
suggesting that these cities are now poised for lift off.

28 India30, 2008

Future Hotspots Retail

Retail sector growth in
Tier III markets will
remain strong, but not
uniform. Operational
issues and product
differentiation will play
an increasingly
importantrole

Growth in the retail sector in Indias Tier III cities

is being fuelled by rising incomes, favourable
demographics, changing attitudes toward
spending and increasing brand awareness. Many
Indian and international retailers already have a
well-established presence in several Tier III cities
and will continue to look for additional markets as
they expand their operations over the long term.
Not all Tier III cities will be able to absorb a high level
of new retail activity. Smaller markets will become
quickly saturated and retailers will be seeking first
mover advantage. Even larger Tier III cities will
eventually become saturated, forcing retail
developers and retailers to focus on operational
issues (mall management) and product differentiation
(luxury malls, discount malls, and other formats).

Fig 30: Retail Market Future Hotspots

Chandigarh
Surat
Kochi
Visakhapatanam
Vijayawada
Ahmedabad
Vadodara
Thiruvananthapuram
Jaipur
Score

Lucknow
Low
Source: Jones Lang LaSalle, 2008

DLF Mega Mall, DLF City, Gurgaon

High

An evaluation of retail potential among the

India30 has taken into account the size and
spending power of each citys consumer base,
economic growth, levels of hypermarket
activity and retail momentum. The analysis has
identified some predictable winners such as
Chandigarh, Kochi, Jaipur and Lucknow, but
also includes less familiar cities, such as Surat
in the state of Gujarat.
The Gujarati cities of Ahmedabad, Vadodara
and Surat have taken three out of the top ten
spots in terms of retail potential. Their strong
potential is driven by a combination of large
market size and solid economic growth. Both
Ahmedabad and Surat are flush with
consumers with high levels of disposable
income, as demonstrated by the large number
of households in the SEC A and B categories
found in those cities. Surat, the capital of
Indias diamond industry, has a relatively large
population of affluent consumers. Ahmedabad
has more SEC A & B households than the
TierII cities of Pune and Hyderabad. Despite
the short term correction that will play out in
Ahmedabads retail sector, we feel this market
is a clear long term winner.
Chandigarh, already well established as a
retail hub, scores well due to its high levels of
per capita expenditure, representing the
highest in India. The city is a top destination
for international retailers due to its high level
of brand awareness. Despite the price
correction that is being witnessed in this
market, demand from retailers and transaction
levels in the market remain strong and will do
so in the medium term.
Kochi and Visakhapatnam, cities with relatively
small consumer bases, scored well across all
measures, pointing to robust retail markets.
Vijayawada, a slightly smaller consumer
market, has also begun to attract brands and
organized retail players into its steadily
growing retail market.

India30, 2008 29

Future Hotspots Hotels

As a group, the India30 will provide opportunities

in the hospitality sector for a diverse set of
product offerings and formats. The six hotspots
that we have identified in particular, with their
unique markets and demand drivers, will offer
products that cover the entire spectrum of
hospitality products and services. The remaining
24 markets, some of which also scored highly in
our analysis, will be able to capitalize on niche
opportunities such as budget hotels, particularly
in cities where domestic tourism is strong.

In evaluating the potential of the hospitality sector in

the India30, we have factored in tourist attractions,
tourism infrastructure development, convention
centres, accessibility by air and rail, and local
Fig 31: Hotels Market Potential vs. Supply
High

Thiruvananthapuram

Potential

Jaipur

Agra

Low

Source: Jones Lang LaSalle, 2008

High number of resorts and

convention centres

Serves as the gateway to

tourism inKerala

Growing corporate demand

International airport that

handles more international
passengers than any other
India30 city

Seaport upgrades include

new international cruise
shipterminal

Part of Indias Golden

Triangle tourcircuit

International airport

Well connected by luxury

and long distance trains

Local attractions drive

religioustourism

Growing corporate demand

International airport

Ahmedabad

Agra

Bhubaneshwar
Visakhapatanam
Amritsar
Surat
Lucknow
Nagpur
Varanasi
Coimbatore
Jalandhar
Mysore Indore
Vadodara
Mangalore
Bhopal Jodhpur
Meerut
Nashik
Vijayawada
Allahabad Kanpur Ludhiana

Indias most popular leisure

destination

Chandigarh
Guwahati

Goa

Kochi

Thiruvananthapuram

Fig 32: Hotel Hotspots

Key Drivers

Goa

A key driver for the hospitality sector will also be the

growth in corporate demand. As Indias economic
activity continues to grow in size and geographic
spread into Tier III cities, demand from business
travellers for rooms and MICE facilities will further
drive development of the hospitality sector.

Six cities stood out from the pack, each with a

different leisure-corporate blend, and emerged as
our future hotspots Goa, Jaipur, Kochi,
Ahmedabad, Agra and Thiruvananthapuram. In
Goa and Agra, the hospitality sector will continue to
be driven primarily by tourism and leisure. At the
other end of the spectrum, the hospitality sector in
Ahmedabad, with its diverse and robust local
economy, will be largely supported by corporate
demand. While tourism is the primary driver for the
hospitality sector in Kochi, Thiruvananthapuram
and Jaipur, all three cities have strong and dynamic
economies and we expect business travellers to
boost demand for hotel accommodation.

While corporate demand

is projected to increase
over the long term, the
hospitality sector will
continue to be fueled by
tourism and leisure

Kochi

corporate demand. Our analysis suggests that most

cities are in the nascent stage of development and
currently show low levels of potential.

Jaipur

India has an acute shortage of hotel accommodation,

with a current estimate of only 31,400 rooms in 5-star
and 5-star deluxe hotels across the whole of the
country. The sector has huge growth potential
supported by both leisure and business demand.
Forecasts by the World Travel and Tourism Council
point to the travel & tourism industry in India growing
by an average of 7.6% per annum over the coming
10years. Furthermore, WTTC ranks India #1 out of
176 countries in terms of projected growth in demand
for travel and tourism. India has so far failed to exploit
its massive tourism potential attracting only 0.5% of
world tourists and taking in only 0.9% of international
tourism receipts. However, this situation is likely to
improve as the international marketing campaigns by
Indias Ministry of Tourism, as well as those by
several states, continue to increase the number of
tourists that visit the country each year.

Supply

High

Home to Indias most

famous tourist attraction
the Taj Mahal

Highest number of
convention centres outside
of Mumbai andDelhi

Part of Indias Golden

Triangle tourcircuit

Source: Jones Lang LaSalle, 2008

30 India30, 2008

Closing Thoughts
Cities with proactive
governments which invest
in infrastructure and
education are best
positioned to succeed

While Tier III cities currently account for a

relatively small share of Indias real estate
market, this scenario is bound to change as
Indias economy continues to grow and be
more widely dispersed. While in general Tier III
cities will stand to benefit from this economic
development, these markets will not grow
uniformly. Rather it will be those cities, led by
proactive governments which invest in
infrastructure and education, that will be best
positioned to succeed. Tier III cities which
simply rely on cost savings (relative to Indias
major metros) will not be doing enough to
ensure future long term growth.
From an examination of future potential across
a combination of office, retail and hotel sectors
together with an assessment of risk profiles,
we short-listed 10 cities which we believe offer
the most robust opportunities.

The first group of 5 cities Ahmedabad,

Chandigarh, Kochi, Jaipur and Nagpur already
have rapidly growing real estate markets due to
city size, market reach and connectivity.
The second set of 5 cities Coimbatore,
Mangalore, Thiruvananthapuram,
Visakhapatnam and Goa are continuing to
emerge as favoured real estate destinations
amongst the India30 due to the unique aspects
that they can offer affordability, tourism and
a rapidly developing consumer base.
Our top 10 cities have disparate risk profiles with
Chandigarh, Kochi and Nagpur scoring the same
risk levels as Indias Tier I and Tier II markets.
The remaining eight cities, while possessing
slightly higher levels of risk, should not be
ignored as opportunities continue to abound
there for those savvy enough to understand the
unique dynamics of these markets.

Technical Notes

Methodology & Definitions

Commercial Space Affordability Index relative
affordability for Grade A commercial space (or
closest substitute in smaller markets) that is
calculated as an average across all business districts
that exist (primary, secondary and peripheral).
Connectivity Index composite index based upon
variables that measure a citys air passenger volume
(domestic and international), rapid transit systems,
rail network density, rail halt stations, sea port access,
connections to major highways and road corridors,
and proximity to Tier I cities and other major metros.
Educational Institutes count of institutes of
higher education within a city including universities,
research institutions, colleges (arts, science,
commerce, teaching, engineering and architecture)
and medical schools.

IT/ITES Penetration based upon cumulative total of

office presence of the top 109 IT and ITES companies
in India. Cities are rated as Strong (5+), Above Average
(45), Average (3), Below Average (12) and Weak (0).
Office Market Activity Score composite index
based upon supply and demand indicators including
stock of Grade A office (or closest substitute in smaller
markets), corporate presence and labouremployed.
Office Market Growth Potential composite index
based upon attractiveness rating to the IT/ITES
industry, Commercial Space Affordability Index,
Connectivity Index, and availability of skilled labour.
Real Estate Potential Score composite index based
upon Office Market Growth Potential, Retail Market
Growth Potential and Hotel Market GrowthPotential.

Hotel Market Activity Score composite index

based upon supply and demand indicators including
presence of business class and luxury hotels,
availability of labour, domestic and international
tourists, domestic and international air travellers
and demand from corporates.

Real Estate Transparency a measure of the degree of

openness, accountability and communication in a real
estate market. World Winning Cities has assigned each
city a grade of A (highest, or most transparent) through
E (lowest, or least transparent) as determined by the
results of a survey of real estate and investment experts.

Hotel Market Growth Potential composite

index based upon corporate presence, convention
centres, tourist attractions, rail connectivity, air
connectivity, presence of business class and luxury
hotels, tourism services and tourism projects.

Retail Market Activity Score composite index

based upon supply and demand indicators including
presence of quality shopping malls & shopping
centres and presence of key retailers of apparel,
food & beverage and entertainment.

Retail Sector Growth Potential composite index

based upon socio-economic fundamentals and
indicators of organized retail including population,
per capita income, per capita savings, per capita
expenditure, socio-economic classification (SEC A
& B), GDP growth, and presence of hypermarkets,
shopping malls & shopping centres, and key retailers
of apparel, food & beverage andentertainment.
Socio-Economic Classification (SEC) used
to group households based on education and
occupation of the chief wage earner with levels A
& B considered high, level C considered mid-level
and levels D & E being considered low.
Abbreviations
BFSI
Banking, financial services & insurance
IT
Information technology
ITES
Information technology enabled services
MNC Multi-national corporation
REMF
Real estate mutual fund
SEBI
Securities and Exchange Board of India
SEZ
Special economic zone
FOREX Rates
As of September 30, 2008
1 USD = 46.9400 INR
1 INR = 0.0213 USD
1 USD = 0.5617 GBP
1 GBP = 1.7804 USD

India30, 2008 31

India 30 Comparative Data

Airports

Tier III (India30)

Tier II

Tier I

City

State

Population
(000s, 2006)

Income / Capita
(USD, 2006)

GDP Growth
(%pa, 20072008)*

Transparency

Transaction
Costs
(Stamp Duty)

International
or Domestic

Total
Passengers
(20072008)

20,924

$1,184

13.58%

5.0%

International

25,864,753

6,761

$1,693

13.37%

8.5%

International

10,120,621

16,029

$1,261

NA

8.0%

International

23,971,662

Mumbai

Maharashtra

Bangalore

Karnataka

Delhi

National Capital Territory

Hyderabad

Andhra Pradesh

6,550

$1,340

6.55%

9.0%

International

6,985,048

Pune

Maharashtra

5,167

$1,405

13.58%

5.0%

International

1,679,409

Chennai

Tamil Nadu

8,219

$1,328

11.88%

8.0%

International

10,659,754

Kolkata

West Bengal

15,736

$976

13.50%

6.0%

International

7,458,932

Agra

Uttar Pradesh

1,873

$662

10.76%

10.0%

Ahmedabad

Gujarat

5,310

$1,340

13.28%

4.9%

Allahabad

Uttar Pradesh

1,336

$1,006

10.76%

10.0%

Domestic
International
Domestic

NA
3,163,647
NA

Amritsar

Punjab

1,481

$1,272

2.67%

6.0%

International

677,768

Bhopal

Madhya Pradesh

1,739

$1,219

9.78%

8.5%

Domestic

218,359

Bhubaneshwar

Orissa

996

$855

2.91%

5.0%

Domestic

702,199

Chandigarh

Chandigarh

960

$2,330

NA

6.0%

Domestic

229,608

Coimbatore

Tamil Nadu

1,820

$1,119

11.88%

8.0%

International

1,062,315

Goa

Goa

798

$1,815

12.00%

2.0%

International

2,578,248

10

Guwahati

Assam

979

$1,768

9.12%

15.0%

International

1,347,485

11

Indore

Madhya Pradesh

2,076

$1,046

9.78%

8.5%

Domestic

12

Jaipur

Rajasthan

3,120

$1,284

8.37%

6.0%

International

13

Jalandhar

Punjab

1,097

$1,609

2.67%

6.0%

548,711
1,339,391

14

Jodhpur

Rajasthan

1,103

$1,125

8.37%

6.0%

Domestic

NA

15

Kanpur

Uttar Pradesh

3,371

$815

10.76%

10.0%

Domestic

NA

16

Kochi

Kerala

1,524

$1,829

13.55%

6.0%

International

3,344,124

17

Lucknow

Uttar Pradesh

2,693

$1,334

10.76%

10.0%

International

716,585

18

Ludhiana

Punjab

1,972

$1,336

2.67%

6.0%

19

Mangalore

Karnataka

858

$1,334

13.37%

8.5%

International

713,667

20

Meerut

Uttar Pradesh

1,679

$739

10.76%

10.0%

21

Mysore

Karnataka

1,076

$1,375

13.37%

8.5%

22

Nagpur

Maharashtra

2,984

$1,047

13.58%

5.0%

International

851,651

23

Nashik

Maharashtra

1,550

$798

13.58%

5.0%

Domestic

NA

24

Patna

Bihar

2,374

$839

8.70%

10.4%

Domestic

387,303

25

Surat

Gujarat

3,991

$1,214

13.28%

4.9%

Domestic

NA

26

Thiruvananthapuram

Kerala

1,146

$2,176

13.55%

6.0%

International

27

Vadodara

Gujarat

1,835

$1,893

13.28%

4.9%

Domestic

501,744

28

Varanasi

Uttar Pradesh

1,372

$677

10.76%

10.0%

International

448,863

29

Vijayawada

Andhra Pradesh

1,337

$1,124

6.55%

9.0%

Domestic

NA

30

Visakhapatanam

Andhra Pradesh

1,644

$1,368

6.55%

9.0%

Domestic

502,194

Sources: Jones Lang LaSalle, Indicus Analytics Pvt. Ltd., Airports Authority of India, and Planning Commision, Government of India
* State-level estimates using current prices

2,101,904

December 2008

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Chiramel Chambers
Kurisupally Road
Ravipuram Kochi 682 015
tel +91 48 4301 8652/5
fax +91 48 4301 8656

Mumbai
1st Floor 2 Brady Gladys Plaza
1/447 Senapati Bapat Marg
Lower Parel
Mumbai 400 013
tel +91 22 2482 8400
fax +91 22 2494 1321

Chandigarh
304 3rd Floor SCO
120122 Sector 17 C
Chandigarh 160 017
tel +91 17 2304 7651
fax +91 17 2304 4212

Gurgaon
Level 9
Tower A, Global Business Park,
Mehrauli Gurgaon Road
Sector 26
Gurgaon Haryana 122 002
tel +91 12 4460 5000
fax +91 12 4460 5001

Kolkata
Berger House
Premises No. 129 3rd Floor
Park Street
Kolkata 700 017
tel +91 33 2227 3294
fax +91 33 2227 3297

Pune
6th Floor
Amar Avinash Corporate Plaza,
Bund Garden Road (Near Inox)
Pune 411 001
tel +91 20 4019 6100
fax +91 20 4019 6101

Chennai
Level 8 Tower II
TVH Beliciaa Towers
Block No 94 MRC Nagar
Chennai 600 028
tel +91 44 4299 3000
fax +91 44 4299 3001

Gurgaon
Building Operations
403 4th Floor Tower A
Signature Towers
South City 1 NH8
Gurgaon 122 001
tel +91 124 408 33368
fax +91 124 408 3339

Mumbai
3rd Floor
Khanna Construction House
44 Dr. R.G. Thadani Marg Worli
Mumbai 400 018
tel +91 22 2497 2652
tel +91 22 2496 2427
fax +91 22 2494 5612

Contacts
To find out how JonesLangLaSalle can assist in making real estate decisions in India, contact one of the following people:
Mr. Anuj Puri
Chairman and Country Head
Mumbai
+91 22 2482 8400
Anuj.Puri@jllm.co.in

Mr. Sanjay Dutt

Chief Executive Officer
Business
Mumbai
+91 22 2482 8400
Sanjay.Dutt@jllm.co.in

Mr. Deepak Bhavsar

Managing Director
Strategic Consulting & Land
New Delhi
+91 11 4331 7070
Deepak.Bhavsar@jllm.co.in

Mr. Avinash Mirchandani

Programme Manager
World Winning Cities
Mumbai
+91 22 6658 1000
Avinash.Mirchandani@jllm.co.in

Mr. Jeremy Kelly

Programme Director
World Winning Cities
London
+ 44 (0)20 3147 1199
Jeremy.Kelly@eu.jll.com

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