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Colliers July 2010
Colliers July 2010
Colliers July 2010
INDIA
QUARTERLY UPDATE | JULY | 2010
c o l l i e r s i n t e r n at i o n a l
s e c o n D Q u a rt e r
MACRO ECONOMIC REVIEW
2010
econoMic inDicators
FDI in Real Estate
The GDP at constant prices for 2009-10 showed an YoY increase of 7.4 per cent over 2008-09. The quarterly estimates of GDP at constant prices for Jan-March 2010 show an YoY increase of 8.6 per cent over last year.
national oFFice BaroMeter cBD MuMBai Delhi GurGaon NOIDA chennai BenGaluru Pune KolKata sBD
12.00
10.00 6.00
4.00 Per cent
24-Jun-10
INR Crore
8.00
2.00
0.00
2005-06
2006-07
2007-08
2008-09
2009-10
The FDI in Real Estate in 2009-10 has increased to INR 13586 crore from INR 12621 crore in 2008-09.The share of Real estate in total FDI rose to 11.01 per cent in 2009-10 from 10.27 per cent in 200809. Overall BSE realty index fell during 2Q2010. It started to rise after touching 2869.54 on May 25, 2010. Over the last one year the monthly wholesale general inflation continually rose from (-) 1.01 per cent to a double digit figure of 10.16 per cent. In this quarter, Indian rupees initially experienced depreciation against US dollars till INR 47.71 on May 25, 2010; however, it started appreciating thereafter. The price of gold reached new height in second quarter of 2010 at INR 18800 per 10 grams on June 8, 2010 after hovering around INR 16500 per 10 grams in the previous quarter. This quarter RBI has increased repo and reverse repo rate in two consecutive months by 25 basis points each which resulted into the repo rate at 5.25 per cent and reverse repo rate at 3.75 per cent. It also hiked Cash Reserve Ratio (CRR) by 25 basis points.
Realty Index
2900
2700
national resiDential BaroMeter PriMe suBurBs MuMBai Delhi GurGaon noiDa chennai BenGaluru KolKata
Note: All Rental and Capital Values provided in this document are for Warm Shell properties and for reference only. Capital and Rental Values may vary on various parameters.
INR/USD
Mar 15,10
Mar 22,10
May 10,10
May 17,10
May 24,10
Apr 12,10
Apr 19,10
Mar 01,10
Mar 08,10
Mar 29,10
Apr 26,10
Apr 05,10
Jun 07,10
May 03,10
May 31,10
Jun 14,10
17-Jun-10
INR
17500 17000
16500 16000 15500 6-Apr-10 12-May-10 19-May-10 26-May-10 20-Apr-10 27-Apr-10 19-Feb-10
12-Feb-10 26-Feb-10 13-Apr-10
5-May-10
5-Feb-10
3-Jun-10
19-Mar-10
12-Mar-10
www.colliers.com/india
26-Mar-10
10-Jun-10
22-Jan-10
15-Jan-10
29-Jan-10
5-Mar-10
1-Jan-10
8-Jan-10
Jun 21,10
MuMBai
Approximately 12.5 million sq ft of prime office space was available in Mumbai in 2Q2010. 70 percent of this available supply was in the form of IT/ITES office space primarily concentrated in Lower Parel, LBS/Thane, Navi Mumbai and Goregaon/JVLR. A number of new office buildings were ready for fit-out in 2Q2010 in areas such as Andheri, BKC, LBS and Thane, adding approximately 2.5 million sq ft of prime office space to the existing inventory. These projects include Pittie Chambers by Pittie Developers, Everest Urbania by Everest Group, Boomerang by Kanakia Spaces, Ackruti Star by Ackruti Developers, Silver Utopia by Silver Group and Element by Dosti & Neptune Group. Rentals and capital values remained stable for both IT and non-IT office space in almost all of the micro-markets. Vacancy remained high during the quarter, due to addition of new supply and the limited number of transactions in the market. In a recent notification, the state urban development department decided to amend the regulation 33 (1) of the Development Control Rules 1991 and to provide 25 per cent more floor space index (FSI) to the developers should they construct a road on a portion of land surrendered to the BMC. In line with Central Legislation, the Building and the Other Construction workers Cess Act, 1996, Maharashtra Government decided to charge 1 per cent labour cess on construction cost of all new public and private projects.
Nariman Point
Malad 5%
1Q2008
2Q2008
3Q2008
2Q2009
3Q2009
4Q2008
4Q2009
1Q2010
1Q2009
200 150 100 50 0 Navi Mumbai (IT) Malad (IT) Goregaon / JVLR (IT) CBD Andheri East BKC Lower Parel Malad Navi Mumbai Powai Worli / Prabhadevi Goregaon / JVLR Thane / LBS Andheri East (IT) Lower Parel (IT) Kalina Thane / LBS (IT) Powai (IT)
Grade A
Grade B
MarKet Deals
client edelweiss siemens india infoline sBi cipla canon
IL&FS Financial Centre, BKC
BuilDinG naMe
location
transaction tYPe
lotus Midtown hcc sun infotech Park Kaledonia raj Plaza rustomjee nataraj rustomjee nataraj
Kalina Vikroli thane andheri (e) Vikhroli andheri (e) andheri (e)
amway
colliers international
2Q2010
Delhi
In 2Q2010 approximately 1.0 million sq ft of prime office space was available for fit-outs. This supply was primarily concentrated in Jasola and Saket. Virtually no new supply was added to the citys prime office space inventory this quarter. Rentals for Grade A office space across all the CBD and SBD locations witnessed a marginal increase in the range of 2-5 per cent quarter-on-quarter, due to limited supply and improved demand. Capital values have also strengthened marginally over the quarter, in the range of 3-4 per cent across all the micromarkets. Vacancy level in the CBD has witnessed a decrease from the previous quarter; however, vacancy in SBD areas such as Jasola, Nehru Place and Saket remained unchanged, due to limited numbers of transactions. The much awaited flyover connecting Delhi to Ghaziabad and Noida via NH24 at Ghazipur became operational this quarter. Due to the upcoming Commonwealth Games, the citys infrastructure has improved at a fast pace. It is expected that all the related infrastructure work will be handed over by 31st July 2010.
Connaught Place 3%
Jasola 51%
Netaji Subhash
Grade A
MarKet Deals
client louis Vuitton hyundai Max Bupa
BuilDinG naMe area (sQ. Ft.) location transaction tYPe
colliers international
2Q2010
GurGaon
Over 8.5 million sq ft of Grade A office space was ready for fit-outs in Gurgaon in 2Q2010. Most of this supply was concentrated at National Highway 8/ Udhyog Vihar, followed by Golf Course Road/Extension, Sohna Road and Manesar. Approximately 60 per cent of this available supply was in the form of IT/ ITES office space.
Manesar 17%
MG Road 7% DLF Cyber City 7% NH8/Udhyog Vihar 40% Institutional Sectors / Sushant Lok 4%
Projects or parts of projects completed in this quarter in Gurgaon include Unitech Business Zone; a non-IT office space at Golf Course Extension Road and Bestech Orient Business Tower; an IT building at NH-8. Both these projects contributed approximately 0.8 million sq ft to the citys Grade A office space. Capital values for non-IT office space witnessed an increase in the range of 2-4 per cent quarter-on-quarter in most of the micro-markets in Gurgaon. However, capital values for IT/ITES office space remained stable across all the micromarkets. Following the capital value trends, rentals for non-IT Grade A office space in areas such as MG Road, Golf Course Road/Extension, Sohna Road and NH8/ Udhyog Vihar observed an increase in the range of 3-5 per cent quarter-onquarter. However, rentals for IT/ITES office buildings remained stable over the previous quarter, due to large available supply. This quarter Delhi Metro between Delhi and Gurgaon become operational, the 14.47 km link connects Qutub Minar in Delhi with HUDA City Centre in Gurgaon.
20
Golf Course Rd./ Ext / Sohana Rd. NH8 / Udyog vihar Institutional Sectors / Sushant Lok Golf Course Rd./ Ext / Sohana Rd.
Manesar NH8 / Udyog vihar (IT) Manesar (IT) DLF Cyber city (IT) MG Road
80 60 40 20 0
MG Road
Manesar
Grade A
Grade B
MarKet Deals
client Max remfrey sagar amway evalueserve contract advertising
Gateway Tower, NH8
BuilDinG naMe
location
transaction tYPe
DlF silokhera individual Bldg individual Bldg unitech infospace seZ chimes times tower
nh-8 Golf course road Golf course road Dundahera sector 44 MG road
sony ericsson
colliers international
Maesar (IT)
noiDa
More than 5.5 million sq ft of Grade A and Grade B office space was available for fit- out in Noida during 2Q2010. Over 70 percent of this supply was IT/ITES office space. Approximately 85 per cent of this total available stock was contributed by Institutional Sectors such as Sector 16-A, 62, 125 and 142 . The remainder of the supply was primarily Grade B IT/ITES office supply concentrated in Industrial Sectors. Projects or parts of projects witnessed completion this quarter included Tower C and D of Express Trade Tower building at Sector 132 alongside Noida Express Way. This contributed approximately 0.4 million sq ft to citys Grade A IT/ITES office space. Two new projects were launched in Noida this quarter: Capital City at Sector 94 on Express Way, and World Trade Tower at Sector 16 on Delhi Noida Delhi Toll Bridge, by BPTP and Electrotherm Developers, respectively. Rental for IT/ITES office space remained stable QoQ in most of the micro-markets. However, rentals for Grade A nonIT office space in Institutional Sectors such as 62, 125, 142 and 16A increased marginally in the range of 2-4 per cent QoQ. Vacancy for both IT/ITES and Non IT/ ITES office space decreased marginally . In a recent decision, the Noida Authority increased the commercial and institutional land rate by 10 per cent. Accordingly the land compensation has also been hiked by 10 pecent.
Industrial Sectors (Industrial Usage bt IT also allowed) (Sec. 1-9, 57-60, 63-65) 14% Commercial Sectors (Sec 18) 0.6%
Commercial Sectors
Grade A
Grade B
MarKet Deals
BuilDinG naMe
location
transaction tYPe
Source: Colliers International India Research Express Trade Tower, Sector 16A
colliers international
Institutional Sectors
chennai
Chennai Grade A office market observed over 9 million sq ft of available stock in 2Q2010. Most of this supply was contributed by areas such as Ambattur, OMR (IT Corridor) and GST Road. Approximately 90 per cent of this available stock was IT/ITES office space. Projects/parts of projects ready for fitouts include Harmony Tower and KDH located in the CBD. Both these projects contribute approximately 1 million sq ft to the citys Grade A office space. The continual addition of new supply kept the vacancy level high in the city prime office market, despite improvement in absorption levels. Rental and capital values for IT/ITES prime office space remained stagnant during the quarter. This could be attributed to high vacancy levels and large upcoming supply across most of the micro-markets. In a recent decision the Tamil Nadu Government has approved uniform guidelines of Development Control Regulations (DCR) relating to multistoreyed buildings, special buildings, group developments, layouts and subdivisions. These regulations will be implemented in planning areas, including Trichy, Madurai, Tirunelveli, Thoothukudi, Salem, Erode, Coimbatore, Tirupur, Vellore and sub-urban areas falling in Kancheepuram and Tiruvallur districts in Tamil Nadu.
CBD 37%
20
GST Road
CBD
Guindy (SBD)
Grade A
MarKet Deals
client cognizant technologies tcs cevin care sBB constructions Dalkia
Tidel Park, OMR
BuilDinG naMe
location
transaction tYPe
colliers international
GST Road
Ambattur
OMR
BenGaluru
Over 7.5 million sq ft of grade A office space was ready for fit-out in 2Q2010 in Bengaluru. Approximately 80 per cent of this available stock was in the form of IT/ ITES office space, primarily concentrated at EPIP Zone, Whitefield and Outer Ring Road. Project/part of the project that witnessed its completion this quarter was Vrindavan Tech Village located at ORR contributing approximately 0.9 million sq ft to the citys prime office space. This quarter, two new projects were launched in Bengaluru: Bagmane Commerce II at CV Ramanagar, and Stand Alone at Hebbal, by Bagmane Group and a local developer, respectively. Following the previous quarters trend, the absorption level in terms of lease and outright sale transactions showed signs of improvement, due to prevailing lower rentals and improved market sentiment, specifically in the IT and auto sectors. The citys overall vacancy levels remained stable QoQ, largely due to the limited infusion of new supply, coupled with a slight rise in absorption levels. Rentals of Grade A office space has increased marginally in the range of 2 - 5 per cent quarter on quarter in most of the micro markets.
Hosur Rd 9%
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
Housur Road
Grade A
Grade B
MarKet Deals
client schneider electricals crossdomain elken semler research center Pvt. ltd. hexawear technologies
UB City,Vittal Mallya Road
BuilDinG naMe
location
transaction tYPe
rMZ nXt stand alone BPl towers stand alone embassy icon the estate
system advisores
colliers international
Bannerghatta Rd
CBD
Electronic City
2Q2010
Pune
In 2Q2010 approximately 10 million sq ft of Grade A office space was available. Most of this stock was in the form of IT/ ITES office space. More than 50 per cent of this supply was concentrated on Nagar Road. The remainder was distributed among areas such as Hinjewadi, Hadapsar, Fursungi, and Airport Road, etc.
Kharadi 5% Hadapsar/Fursungi 8%
Hinjewadi 17%
This quarter a new commercial project was launched in Pune named AG Inspire - at Aundh by AG Construction.
PriMe oFFice sPace rental trenD
After almost three static quarters, rentals in Pune started inching up in few areas. An increase, in the range of 2-6 per cent, was witnessed in areas such as Baner, Bund Garden, Airport Road and Hinjewadi. However, no change in capital values was observed in this quarter. Vacancy dropped marginally, due to increase in the number of deals compared to previous quarters, and no new supply addition in the existing office space. The construction activity has picking up, due to positive sentiment and the recovery of ITES industry, which is main driver of Pune. started market the IT/ growth
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
60 50 40 30 20 10 0 Airport road/ Pune station Baner Hinjewadi/Hadapsar/Fursungi(IT) Airport road/ Pune station Baner (IT) Bund Garden (IT) Aundh (IT) Senapati Bapat Road (IT) Bavdhan (IT) Kalyani Nagar (IT) Nagar Road (IT) Kharadi (IT) Bund Garden (IT) Aundh Senapati Bapat Road Bavdhan Kalyani Nagar Nagar Road Hinjewadi Hinjewadi/Hadapsar/Fursungi Kharadi
MarKet Deals
client citibank Global advertisement services cognizant technologies iDBi
Infosys Headquarter Building, Hinjewadi
BuilDinG naMe
location
transaction tYPe
colliers international
2Q2010
KolKata
The second quarter witnessed a new supply of approximately 1 million sq ft in Kolkata prime office space. Approximately 60 per cent of this supply was in the form of IT/ ITES office space, concentrated mostly in Sector V. New projects saw their completion this quarter includes Synthesis in New Town and Godrej Waterside (Tower II) at Salt lake, by Bengal Shrachi and Godrej Properties, respectively. Continuing the previous quarters trend, rental values in most markets remained stable, except Sector V and New Town (Rajarhat), where a marginal increase in the range of 3-7 per cent was observed QoQ for both IT/ITES and non-IT office space. Capital values remained stable during 2Q2010, barring New Town (Rajarhat), which witnessed an increase of approximately 9 per cent quarter on quarter. Absorption has improved as compared to previous quarters, and a few large deals happened in areas such as Salt Lake and New Town, resulting in marginal appreciation in rentals in these areas. Overall vacancy almost stagnant, supply addition of absorption in market. in 2Q2010 remained attributed to the new nullifying the impact the prime office space
Sector-5 83%
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
CBD (Park St, Camac St, JC Bose Rd) PBD (New Town, Rajarhat)
East Kolkata
Sector -5
Sector - 5(IT)
Grade A
Grade B
MarKet Deals
client sharda Group Bajaj allianz uninor Zte telecom edu com
DLF IT Park-2, New Town Rajarhat
BuilDinG naMe
location
East Kolkata
transaction tYPe
Globsyn crystal ecospace south city Pinnacle Godrej Waterside akash tower ashram Building
salt lake rajarhat, salt lake salt lake eM Bypass salt lake
10
colliers international
CBD
Sector - 5
Ballygunge Circular RD
2Q2010
20
MuMBai
New supply additions in the premium residential market remained limited this quarter, with only two new projects/ parts of projects witnessed their completion: Orbit Eternia in Lower Parel and Orchid Enclave in Mumbai Central developed by Orbit Developers and DB Realty, respectively. A number of premium projects were launched this quarter in Mumbai including World One by Lodha Developers, Ahuja Towers by Ahuja Builders, Kumar Cortue by Kumar Builders, Oberoi Exquiite by Oberoi Builders, Aqua Marine & Hill Roof by Kamla Group. Most of these projects were concentrated in Lower Parel, Prabhadevi, Goregaon and Bandra (West). Despite a few big ticket transactions, such as the INR 37 crore deal for an apartment at Samudra Mahal building at Haji Ali, and the INR 33 crore deal for an apartment in Kamal Mahal building on Carmicheal road, capital values remained stable this quarter in most of the locations in South and South Central areas such as Colaba, Cuffe Parade, Malabar Hills, Altamount Road, Carmicheal Road, Breach Candy, Napeansea Road, and Peddar Road . However, an increase in the range of 2-7 per cent was witnessed in Central and North Mumbai locations such as Worli, Prabhadevi, Bandra, Santacruz, Khar and Juhu. Rentals witnessed a fall of approx. 4-6 per cent in most of the micro-markets, except for a few locations in South Central areas.
INR per sq ft
Colaba , cuffparade
Malaar hill, Altamoundt Rd, carmichael Rd Breach Candy, Napeansea rd, Pedder Rd
Prabhadevi
Santacruz
Andheri
Bandra
Khar
1Q2010
5000
Worli
Colaba, Cuffe Parade Breach candy, Neapen Sea Road, Peddar Road Prabhadevi Malabar Hill, Altamount Road, Carmichael Rd
Worli Andheri
Bandra
Santacruz
ProJects launcheD PROJECT NAME World One Ahuja Towers Kumar Coture Oberoi Exquisite Aqua Marine Hill Roof LOCATION Lower Parel Prabhadevi Prabhadevi Goregaon Bandra (West) Bandra (West)
MarKet Deals
client individual itochu corp. Morgan stanley individual Marsh
Oberoi Parkview, Kandivali(E)
ProPertY classiFication
location
transaction tYPe
British consulate
colliers international
Juhu
11
Delhi
INR per sq ft
Supply additions in premium residential properties were restricted, as only a few redevelopment projects were completed in the South Delhi area, such as Vasant Vihar, Anand Niketan, Defense Colony and Shanti Niketan. The demand for premium properties started picking up and an increase in enquiries were recorded; however, the conversion ratio is still very low, due to cautious investor sentiment. Capital values for prime residential properties in most of the micro-markets showed marginal appreciation in the range of 2-4 per cent, except in a few areas, such as Friends Colony, Maharani Bagh, Greater Kailash and South Extension. Rental for premium residential areas observed rise in the range of 2 to 6 per cent in areas such as Prithviraj Road, Chanakya Puri, Panchashila, Anandlok, Niti Bagh, Anand Niketana and Vasant Vihar, due to restricted supply with existing stock being recycled in the market. In a recent policy change, the Delhi Government revised the circle rates for sale and purchase of properties in the capital. For premium residential areas, such as Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave Anandlok, etc., the circle rate was revised at INR 1.25 lakh per sq mtr, from the existing rate of INR 43,000 per sq mtr. The Government has also decided to abolish the existing eight categories of colonies and introduce the new rates for 2,480 colonies identified by the Revenue Department.
Chanakya Puri
Lutyens Delhi
5000
Prithviraj Road, Aurangzeb Road Golf Links, Jor Bagh, Sunder Nagar Panchashila, Anandlok, Niti Bagh, SDA Greater Kailash I & II, South Extension
Chanakya Puri Shanti Niketan, Westend Friends Colony, Maharani Bagh Anand Niketan, Vasant Vihar
ProJects launcheD Only Few redevelopment projects were launched in areas such as Vashant Vihar , Westend, Chanakya Puri and Defence Colony.
MarKet Deals
client Xerox BMW German embassy Ben & company
ProPertY classiFication area (sQ. Ft.) location transaction tYPe
12
colliers international
GurGaon
DLF Phase I
Golf Course Rd
Sushant Lok
In 2Q2010 a number of residential projects were launched. These included Spire South by Millennium Spire, Victory Valley by IREO, Tulip Purple by Tulip Infratech Pvt. Ltd. , Upvan Phase II by ABW Group, Carnation Residency by Orris Infrastructure, Harmony Nirvana Country by Unitech Ltd., Casa Bella Phase II by Mapsko Builders, ILD Spire Greens by ILD Millennium , M3M Golf Estate by M3M Group. Most of these projects were launched in newly developing sectors such as sector 67,68,69, 85 and 45 located on Golf Course Extension Road and Sohna Road. In 2Q2010 no supply was added to the citys premium residential space. Due to improved economic conditions and active investor participation the absorption for prime residential properties observed an increase from previous quarter. Capital values for premium residential properties in locations like DLF Golf Course Road, Sohna Road and NH8 witnessed an increase in the range of 8-10 percent quarter. Rentals observed an increase of 3-6 percent quarter on quarter across all the micro markets in Gurgaon. The State Government has decided to develop 6 new residential sectors 5863 to cater to the growing housing requirement. The government is in process for acquiring the land falling in eight villages namely Medawas, Tigda, Behrampur, Ulvass, Badshapur, Nangali Umarpura, Ghata and Kadarpur for this purpose.
INR per sq ft
DLF phase IV
INR per sq ft
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
1Q2010
DLF Phase I
ProJects launcheD PROJECT NAME Spire South Victory Valley Tulip Purple Upvan Phase II Carnation Residency Harmony Nirvana Country Casa Bella Phase II LOCATION Sector 68 Sector 67 Sector 69 Sector M-1 Sector 85 Sector 50 Sector 82
MarKet Deals
client Mnc croma Phillips ranbaxy
Vipul Belmonte, Gurgaon
ProPertY classiFication
location
transaction tYPe
colliers international
2Q2010
NH - 8
13
noiDa
A number of mid range projects were launched in Noida in 2Q2010 including Eldeco Sharnam by Eldeco Developers, Mahagun Moderne by Mahagun Pvt. Ltd, Jaypee Kensington Boulevard, Kasa Isles, and Knights Court by Jaypee Developers, Royal Park by Purvanchal Developers, Golf Views by Antriksh Group, 34 Pavilion, Ceyane Heights and Apex Heights by Supertech, Princely Estate by Amrapali Developers, Morpheus Green by Morpheus Group, Sikka Karmic Greens by Sikka Group, Prateek Wisteria by Prateek Group and Elite Homz, by HR Oracle Developers. These project were mostly concentrated either in Sector 75,76,77,78 or in Sectors adjoining Noida Greater Noida Express way such as 137,117, 107, 131, 129, and 93 A. Additionally Noida Authority has also launched a scheme of duplex residences in various sectors of Noida pricing between INR 80.53 lakh to INR 1.11 crore admeasuring in the range of 125 sq mtr to 180 sq mtr. The registration amount for these duplex were fixed at INR 8 lakh for all categories and rest of the amount will have to be paid in six monthly installments. Capital value remained stable across all the micro-markets in Noida. Ample new supply is the major factor attributed to this trend.
INR per sq ft
Sector 44
Sector 50
Sector 92/93
3000
ProJects launcheD PROJECT NAME Eldeco Sharnam Mahagun Moderne Kasa Isles Royal Park Golf View LOCATION Sector 107 Sector 78 Sector 129 Sector 137 Sector 78
Rental values also remained stable across all the micro-markets in Noida. This quarter the first flyover on the UP Link Road connecting Akshardham to Noida witnessed completion. The flyover will be open to public in July 2010. This is expected to be used by approximately 50,000 commuters every day .
MarKet Deals
client individual individual individual
ProPertY classiFication area (sQ. Ft.) location transaction tYPe
14
colliers international
chennai
In 2Q2010 a number of premium projects/ parts of the projects were completed, including Anantya in Navallur, Aura One in Shastri Nagar, Strawberry in Egmore, and Central Park West in Sholinganallur, developed by Indus Builders, Androit Urban,Vijayshanthi and Lancor developers, respectively. Due to improved market conditions Chennai observed the launch of a number of projects in areas such as OMR, Velachery and Mogaippair. Projects, that were launched in 2Q2010 include Gem Grove, Carolina, Verdan Acres, Sunrise and Dewy Terraces, by Vision India Real Estate, Kgeyes, Plaza Properties, Golden Prosperous Properties and Sare Group, respectively. The demand has improved marginally in the prime residential market, as analysed from the number of enquiries during the quarter. However, the conversion rate of these enquiries into real transactions remained low, due to cautious investor sentiments. In terms of leasing, an increased demand for fully furnished apartments and service apartments was witnessed from corporate clients. Despite an increase in demand, the rental and capital values for prime residential properties remained stable in almost all the micro-markets in Chennai. In an effort to provide housing for lower income groups and the economic weaker section (EWS), the state government made a necessary provision for 10 per cent of the site area to be earmarked for the provision of housing for the lower income group and EWS, where developments are proposed for sites exceeding 10,000 sq m.
INR per sq ft
Nungambakkam
Alwarpet/ R A Puram
Beasant Nagar
Sholinganallur
1Q2010
Anna Nagar
Boat Club
T Nagar
Adyar
Velachery
INR per sq ft
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
3Q2009
4Q2009
ProJects launcheD PROJECT NAME Gem Grove Carolina Verdant Acres Sunrise Dewy Terraces LOCATION Padur, OMR Velachery Perumbakkam, OMR Golden George Nagar, Mogappair Thiruporur, OMR
MarKet Deals
client saipem india Projects Pvt ltd hindustan oil exploration individual Pharmaceutical company
VGP Layout, East Coast Road
ProPertY classiFication
location
transaction tYPe
German consulate
colliers international
2Q2010
Siruseri / Kazipattur
15
BenGaluru
Bengaluru residential market witnessed launches of a number of new projects across all segments during the second quarter of 2010. Projects that were launched in the premium segment includes Melody and Purva Atria Platina by Salarpuria & Sattva Group and Purvankara developers, respectively. In mid range segment, the projects such as The Ledge by Mehta Commercials Pvt. Ltd., Century Pragati by Century Group, Century Paradise by Century Real Estate Holdings, Royal Manor by Arattukulam Developers and Pride Pavilion by Pride Expert Properties were launched. Demand for premium residential property witnessed an increase due to improved expatriates movements. However, demand has shifted towards suburbs due to availability of better quality of housing amenities and good infrastructure. The construction speed witnessed an increase in the projects which were earlier either delayed or put on hold due to economic slowdown. Capital values remained stable witnessing minor appreciations in some of the micro-markets in Central and South East locations. Continuing the previous quarter trends rentals remained stable across all the micro markets in Bengaluru.
INR per sq ft
Bannerghatta Road
Whitefield (Appts)
1Q2010
Koramangala
Palace Orchard
Cooke Town
Airport Road
Central
Jayanagar
Indira Nagar
INR per sq ft
2Q2008
2Q2009
3Q2008
1Q2008
4Q2008
1Q2009
3Q2009
4Q2009
ProJects launcheD PROJECT NAME Melody Purva Atria Platina The Ledge Century Pragati Pride Pavillion Royal Manor Century Paradise LOCATION Mysore Road Sanjay Nagar Bellary Road Bannerghatta Road Rajajji Nagar HSR Layout Bannerghatta Road
MarKet Deals
client
ProPertY classiFication area (sQ. Ft.) location transaction tYPe
Individual
individual individual
apartment apartment
Villa
16
colliers international
2Q2010
Yelahanka
KolKata
Ujjwala, Rajarhat
Kolkata witnessed completion of a number of projects/parts of projects in 2Q2010 contributing approximately 1 million sq ft to the citys residential stock. The Projects constituting this supply include PS Srijan Sonargaon, PS Palazzo & Jubilee Park, Siddha Pines and Purti Utsav developed by PS Group & Srian Developers, PS Group, Siddha Real Estate Developments and Purti Group, respectively. Most of these projects were located in South Kolkata areas such as Sonar Pur, Panditiya Road, Tollyguange and Rajarhat. A number of projects were launched in Kolkata this quarter, including Club Town Heights, Eden Gourth - Primo (Phase-1) Emerald Garden, PS Magnum, Devaloke De Casa, by Space Group, Tata Housing, Realtech Nirman, PS Group, Devaloke Group, respectively. Most of these projects were launched in the mid-range segment, consisting of 2BHK and 3BHK configuration. In 2Q2010 capital values witnessed an increase in the range of 2-6 per cent in areas such as Bhawanipur, Tollygaunge, Alipore, Behela, EM Bypass and VIP Road in South, South West and North Kolkata. However, in the rest of the micro-markets the capital values remained stable. Contrary to the capital value trends, the rental values remained stable in almost all the micro-markets in Kolkata.
INR per sq ft
Salt Lake
PA Shah Road
Tollygunge
INR per sq ft
1Q2008
2Q2008
3Q2008
4Q2008
1Q2009
2Q2009
Ballygunge
3Q2009
4Q2009
ProJects launcheD PROJECT NAME Club Town Heights Eden Court -Primo (Phase-1) Emerald Garden PS Magnum Devaloke De Casa LOCATION BT Road New Town, Action Area-II Teghoria VIP Road Sonarpur
ProPertY classiFication
location
transaction tYPe
Kalikapur Jadavpur
sonarpur rajarhat rajarhat
colliers international
1Q2010
VIP Road
Behela
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coMMercial suBMarKets
Mumbai The major business locations in Mumbai are the CBD (Nariman Point, Fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandra Kurla Complex (BKC) and Andheri Kurla stretch. Powai, Malad and Vashi are the preferred IT/ ITES destinations, while Airoli at Navi Mumbai and Lal Bahadur Shastri Marg are emerging as new office and IT/ITES submarkets. Delhi The commercial areas in New Delhi metropolitan area can be broadly classified into the CBD (Connaught Place), SBD Nehru Place, Bhikaji Cama Place, Netaji Subhash Place, Jasola and Saket . Gurgaon The prime business locations in Gurgaon are MG Road, Golf Course Road, Cyber City and Udhyog Vihar. Manesar on the outskirts of Gurgaon is also emerging as the citys new office destination. NOIDA Noida market is comprised of sectors broadly classified as institutional, industrial and commercial sectors. Institutional sectors include sec 16A, 62 and 125-142, industrial sectors include sec 1-9, 57-60 and 63- 65 while sector 18 is the most developed commercial sector. Chennai Prime office properties in Chennai are located in four principal sub-markets: the CBD, the IT Corridor, the SBD and the PBD. The SBD comprises Guindy, Manapakkam, Velachery and other areas. The PBD primarily includes Ambattur and GST Road, while the IT Corridor is the Old Mahaballipuram Road (OMR) in south Chennai. Bengaluru Prime office properties in Bangalore can be divided into three principal sub-market CBD, the SBD consisting of Banerghatta Road & Outer Ring Road (ORR) and PBD including Hosur Road, EPIP Zone, Electronic City and Whilefield. Pune The prime office sub-markets of Pune include Deccan Gymkhana, Senapati Bapat Road & Camp (SBD), while the PBD includes Aundh, Bund Garden, Airport Road and Kalyani Nagar, among other locations. The eastern corridor, along with Nagar Road and Kharadi, have emerged as a preferred location for financial and IT/ITES companies. Kolkata The major business locations in Kolkata are CBD (Park Street, Camac Street, AJC Bose Rd, Chowranghee Rd), Ballygunge circular Rd, East Kolkata and PBD (New Town & Rajarhat). The area around Park Street, Camac Street and AJC Bose road houses a number of high-rises commercial buildings such as Chatterjee International Centre, Tata Centre, Everest House and Industry House among others.
resiDential suBMarKets
Mumbai The high-end residential real estate markets in Mumbai include Malabar Hill, Altamount Road, Carmichael Road, Napean Sea Road, Breach Candy, Colaba, Cuffe Parade, Prabhadevi, Worli, Bandra, Khar, Santacruz, Juhu and Powai. Delhi The prime residential areas in Delhi are in the South region and comprise Vasant Vihar, Westend, Shanti Niketan, Anand Niketan and Central Delhi locations. These areas enjoy proximity to embassies, the airport and central commercial areas - Connaught Place. Gurgaon The prime residential locations of Gurgaon include Golf Course Road, DLF Phase I, Sushant Lok and Sohna Road. The DelhiJaipur Highway (NH-8) is also emerging as a preferred residential location owing to its proximity to the national capital. NOIDA Noida premium residential market is comprised of sectors 44, 50, 92, 61,62,63 , 28, 29,, 30 and Taj Express Highway. Chennai The prime residential areas in Chennai include Thiruvanmiyur, Valmiki Nagar and Besant Nagar, R.A Puram, Mylapore and Adyar in South Chennai, Nungambakkam, Chetpet, Poes Garden, Egmore, Alwarpet, T. Nagar in Central Chennai; and Anna Nagar, Kilpauk in North West Chennai. Bengaluru The residential market of Bangalore comprises both apartments and independent residences. Currently, high-end residential developments are mainly concentrated along the CBD, and Eastern and South precincts of the city. Recently, Northern Bangalore has also witnessed a spree of realty activity facilitated by the new International Airport at Devanhalli. Kolkata The prime residential areas in Kolkata include PA Shah Road, Tollygunge and Bhawanipur in South Kolkata, Alipore and Behala in South-west Kolkata, Loudon Street and Ballygunge in Central Kolkata; and Salt Lake, EM Bypass and VIP Road in North Kolkata.
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New Delhi : 204/205, 2nd floor, Kanchenjunga Building, 18, Barakhamba Road, New Delhi - 110 001. Tel : 91 11 4360 7500 - 23 fax: 91 11 2335 6624 Bengaluru : Prestige Garnet, Level 2, Unit No.201/202, 36 Ulsoor Road, Bengaluru - 560 042. Tel : 91 80 4079 5500 fax: 91 80 4112 3131 Pune Gurgaon Chennai Kolkata : Vatika Business Center, Level-5,C Wing, Panchsheel Tech Park-1, Yerwada Pune- 411 006. Tel : 91 20 4011 1356 : G3-5th Floor, NewBridge Business Centers, TechnoPolis, DLF Golf Course Main Road, Sector 54, Gurgaon - 122002. Tel : 91 124 437 5807 fax : 91 124 437 5806 : Heavitree Complex, Unit 1C, 1st floor, 23,Spurtank Road, Chetpet, Chennai - 600 031. Tel : 91 44 2836 1064 fax: 91 44 2836 1377 : Kolkata Regus Business Centre, Constantia, Level 6, 11 U.N. Bhramachari Road, Kolkata - 700 017. Tel : 91 33 4400 0541 fax: 91 33 4400 0555
RECENT REPORTS Asia Pacific Office Market Overview - April 2010 Asia Pacific Industrial Market Overview - 2010 Global Parking Rate Survey - 2010
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