India Real Estate Residential and Office Market h2 2022 9809

RE SEA RCH
INDIA
REAL ESTATE
Residential and Office - July - December 2022
www.knightfrank.co.in/research
Mumbai HO
Knight Frank (India) Pvt. Ltd.
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Bengaluru
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Pune
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Pune 411 013, India
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Chennai
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Nungambakkam, Chennai 600 006, India
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Gurgaon
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Hyderabad
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Hyderabad Knowledge City,
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Kolkata
PS Srijan Corporate Park
Unit Number – 1202A, 12th Floor,
Contents
Block – EP & GP, Plot Number - GP 2,

Sector – V, Salt Lake, Kolkata 700 091, India All India 04
Tel: 033 66521000
Ahmedabad
Ahmedabad 14
Unit Nos. 407 & 408, Block ‘C’, The First,
B/H Keshav Baugh Party Plot,
Vastrapur, Ahmedabad – 380015 Bengaluru 22
Tel: 079 48940259/ 40380259
Chennai 32
Hyderabad 40
Kolkata 49
Mumbai 58
NCR 68
Pune 78
Foreword
After a prolonged period of uncertainty, 2022 was expected to see the
beginnings of a global economic recovery with the pandemic dissipating and
Shishir Baijal focus returning to economic growth. However, geopolitical tensions, energy crisis
Chairman and Managing Director and a highly inflationary environment, especially in the west, did not bode well for
the global economy or businesses in general. To combat this permacrisis, central
banks across the world raised policy rates to quell rising inflation. Most central
banks around the world raised prime lending rates to between 300 – 450 BPS in
2022. The looming threat of a recession also weighed on the investment climate
and constituted a challenging environment for global real estate markets.
Despite global headwinds weighing down on the domestic economy, India has
continued to be the fastest growing large economy globally. This is reflected in
the robust office and residential demand, and even complemented by relatively
strong price growth seen during 2022.
During 2022 the trend of a ‘liberated workplace’ continued as many companies

extended their experiment, with different combinations of workplace, in a bid
to arrive at the most productive office format. While more companies recalled
their staff to office in 2022, workplace flexibility was key theme for the year. This
need for flexibility further accelerated demand for managed offices or co-working
spaces that specialize in optimizing productivity.
While the resurgence in the office market has been a welcome surprise, the
residential market has sustained the momentum seen in the latter half of 2021.
Despite the 225 BPS repo rate hike, and increasing mortgage rates during the
year, the robust performance of the sector during H2 2022 signifies the strength
of the underlying demand for property.
I invite you to read the 18th edition of Knight Frank India’s flagship half yearly
report – ‘India Real Estate – Office and Residential, July – December 2022, which
tracks the developments that have impacted the residential and office segments
across the top 8 cities.
I hope that you will find it insightful and interesting.

4 I N D I A R E A L E S TAT E
All India
Real estate demand sustains momentum in 2022 with annual residential sales at a
nine-year high and office transactions second only to record levels seen in 2019.
Residential Market
ALL INDIA MARKET SUMMARY
2022 H2 2022
Parameter 2022 H2 2022
Change (YoY) Change (YoY)
Launches
328,129 41% 167,323 30%
(housing units)
Sales
312,666 34% 153,961 15%
(housing units)
Note – 1 square metre (sq m) = 10.764 square feet (sq ft)
Source: Knight Frank Research
Unsold inventory (housing units) in 2022
453,477 Quarters to sell

(in quarters) 2022
Age of unsold
inventory (in
4% quarters) 2022
Change (YoY)
7.2 16.3
LAUNCHES AND SALES TREND Launches (Units) Sales (Units)
1,67,323
1,53,952
1,58,705
1,33,487
1,41,341
1,35,016
1,29,285
1,29,144
1,24,288
1,18,040
1,26,616
1,26,865
1,20,755
1,12,150
1,11,175
1,16,576
10,385
1,17,200
1,03,238
1,07,120
1,07,316
1,09,159
99,416
94,997
91,739
89,509
86,139
68,702
62,738
60,489
59,538
40,832
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• All real estate asset classes have been on the >10 mn ticket-size categories grew from 35% to
recovery path over the past few quarters; however, 37% and 20% to 21% respectively. The higher
the resurgence in the residential segment was income segments were not as impacted by income
the swiftest and the most substantial. While the disruptions caused by pandemic exigencies as was
need for security that was acutely felt during the initially expected. Besides, the high savings rate
pandemic triggered the demand for homes, the due to the initial weak sentiments and lockdown
extremely low interest rates and comparatively low periods have played their part in fueling the current
property prices made the case for homebuying wave of demand.
even stronger. 2022 was expected to be the year
• While sales volumes have been robust in H2 2022,
of a sustained global recovery as the pandemic
prices have also grown in the range of 4% to 7%
ebbed and economic growth came back on
across all markets with Bengaluru, NCR, Mumbai
track. However, the Ukraine war and its massive
and Pune growing by 7% YoY each. This also
geopolitical fallout along with the continuously
marks the second consecutive half-yearly period
rising inflation threatened to put economies across
of YoY growth in prices across all markets. Even in
the world in a tailspin and catch India in its wake as
sequential terms, prices have either stayed steady
well.
or grown across markets during the period.
• With central banks raising policy rates to fight
• With the supply of units exceeding that of sales
an inflationary environment, making mortgages
during 2022, the unsold inventory level by the
increasingly expensive, residential markets around
end of the year grew slightly by 4% YoY to 0.45
the world have seen volumes taper off after the
mn units. And while the market is carrying more
initial recovery in 2022. However, despite the
inventory, heightened sales in 2022 have pushed
Reserve Bank of India raising policy rates by a
down the Quarters to Sell (QTS) level from 10.2 to 7.2
cumulative 225 bps in 2022, residential demand
quarters in H2 2022. QTS measures the number of
in the country has not only remained resilient
quarters required to exhaust the unsold inventory
but surged to a nine year high in terms of annual
and is calculated by dividing the existing unsold
sales in 2022. H2 2022 is second only to H1 2022
inventory by average sales of the eight trailing
in terms of being the half-yearly period with the
quarters from the analysis period to avoid seasonal
highest sales in nine years.
volatility. Generally, a lower QTS level denotes
• Heightened savings during the lockdowns, greater sales traction and better market health.
relatively little income disruption in the mid and
• The residential market turned a corner in 2022
high-income categories and a comparatively strong
with sales momentum consistently improving over
economic growth outlook have sustained demand
the year. Sales levels were not materially dented
in the Indian residential market. The 0.15 mn units
by concerns over growing inflation, increasing
sold during H2 2022 constitute a healthy 15%
interest costs or slowing economic growth. The
YoY growth in volume. While sales remain robust
industry continues to consolidate with residential
during the period, they have dipped marginally by
developments steadily shifting into the hands
3% compared to H1 2022. Considering the steady
of stronger developers who have been able to
upward trajectory that sales have stayed on since
weather the economic storm created by the
H1 2020, this modest dip is not a matter of concern.
pandemic. While ready inventory remains a strong
• The resurgence in demand has also put residential preference for homebuyers, established developers
development into overdrive with the half-yearly as with a robust execution record are increasingly
well as annual volume of units launched reaching finding a market for their under-construction
nine-year highs. Notably, this is also the first year inventory.
since 2014 that the volume of units launched has
exceeded that of units sold.
• The demand momentum was strong in H2 2022

with sales growing on a YoY basis in all markets,
except for Kolkata. Hyderabad saw the most sales
growth at 32% YoY while NCR and Mumbai grew at
24% and 19% YoY respectively.
• Sales in the <INR 5 mn ticket size price segment

reduced from 45% in 2020 to 42% in 2022.
Conversely, during the same reference period,
the share of annual sales in the INR 5-10 mn and
Knight Frank Affordability Index
The Knight Frank Affordability Index that tracks the EMI (Equated Monthly Instalment) to income ratio for house-
holds has declined across all cities during 2022. The 225 bps repo rate hike and consequent increase in home loan
rates along with higher residential prices are the primary drivers of this decline. 2022 also marks the first year since
2011 for affordability decline in year-on-year terms.
However, all markets except Mumbai, are recorded to be well below the threshold of comfortable affordability set
at 50% ratio, a level exceeding which banks rarely underwrite a mortgage. Ahmedabad emerged as the most afford-
able housing market in the country with an affordability ratio of 22% which implies that on an average a household
in Ahmedabad needs to spend 22% of its income to pay EMI for a housing loan. Ahmedabad was followed by Kolkata
and Pune at 25% each in 2022. Mumbai was the only city that recorded a higher than threshold affordability ratio at
53%, although it has improved the most since 2010.
While affordability levels across cities are much better compared to 2010, they also stand significantly improved than
those existing in pre-pandemic 2019. For instance, in NCR, the affordability index improved from 34% in 2019 to 29%
in 2022, while for Bengaluru, it improved from 32% in 2019 to 27% in 2022.
AFFORDABILITY MATRIX
City 2010 2019 2021 2022
Mumbai 93% 67% 52% 53%
NCR 53% 34% 28% 29%
Bengaluru 48% 32% 26% 27%
Pune 39% 29% 24% 25%
Chennai 51% 30% 24% 27%
Hyderabad 47% 34% 28% 30%
Kolkata 45% 32% 25% 25%
Ahmedabad 46% 25% 20% 22%
1. Calculated as EMI/INCOME ratio

2. City-wide average affordability statistics cannot highlight disparities in housing costs within sub-markets or across the income spectrum.
Source: MOSPI, Knight Frank Research
METHODOLOGY
The Knight Frank Affordability Index indicates the proportion of income that a household requires to fund the
monthly instalment (EMI) of a housing unit in a particular city. So, a Knight Frank Affordability Index level of 40%
for a city implies that on an average, households in that city need to spend 40% of their income to fund the
EMI of a housing loan for a unit. An EMI/ Income ratio of over 50% is considered unaffordable as it is the limit
beyond which banks rarely underwrite a mortgage.
ASSUMPTIONS
• EMI, housing unit size and price/sq ft represent city-level averages.
• Loan Tenure – 20 years
• Loan to Value – 80%
• Home Loan Interest Rate - Average home loan rates of the State Bank of India (SBI)
• Area of Housing Unit: House sizes are fixed for each city across the years but vary within different cities
taking into account the average size preference for each city.
• Housing Price: Median housing price for that city.
TICKET SIZE SPLIT COMPARISON OF SALES DURING H2 2021 AND H2 2022 <5 mn 5-10 mn >10 mn
H2 2022
35% 37% 28%
H2 2021
42% 35% 23%

100%
40%
80%
60%
50%
90%
20%
30%
70%
10%

INDIA MID AND PREMIUM MARKET ACTIVITY

Mid-segment sales Premium segment sales
57,595
54,913
47,283
42,562
42,713
40,306
38,847
38,425
38,352
35,045
34,027
Sales in H2 2022
30,641
15%
23,011
22,450
20,716
19,397
19,318
19,959
19,329
YoY increase
10,899
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
RESIDENTIAL LAUNCHES AND SALES
LAUNCHES SALES
H2 2022 (YoY change) 2022 (YoY change) H2 2022 (YoY change) 2022 (YoY change)
Mumbai 42,968 (26%) 90,434 (29%) 40,969 (19%) 85,169 (35%)
NCR 34,507 (96%) 63,233 (207%) 29,359 (24%) 58,460 (67%)
Bengaluru 22,197 (29%) 43,420 (42%) 26,686 (15%) 53,363 (40%)
Pune 21,247 (6%) 38,640 (-5%) 21,613 (9%) 43,410 (17%)
Chennai 7,846 (7%) 15,416 (21%) 7,297 (18%) 14,248 (19%)
Hyderabad 22,491 (18%) 43,847 (23%) 16,353 (32%) 31,046 (28%)
Kolkata 5,644 (6%) 12,330 (64%) 5,819 (-37%) 12,909 (-10%)
Ahmedabad 10,424 (24%) 20,809 (42%) 5,865 (25%) 14,062 (58%)
All India 167,323 (30%) 328,129 (41%) 153,961 (15%) 312,666 (34%)
RESIDENTIAL MARKET HEALTH IN H2 2022
City Unsold inventory (YoY change) QTS
Mumbai 159,832 (4%) 8.6
NCR 100,959 (5%) 8.6
Bengaluru 57,398 (-15%) 5.0
Pune 46,042 (-9%) 4.6
Chennai 14,184 (9%) 4.3
Hyderabad 31,400 (69%) 4.5
Kolkata 20,686 (-3%) 6.1
Ahmedabad 22,977 (42%) 6.8
All India 453,477 (4%) 7.2
RESIDENTIAL PRICE MOVEMENT
City H2 2022 in INR/sq m (INR/sq ft) 12 month change 6 month change
Mumbai 79,298 (7,367) 7% 3%
NCR 48,330 (4,490) 7% 1%
Bengaluru 59,315 (5,511) 7% 3%
Pune 46,204 (4,293) 7% 1%
Chennai 46,285 (4,300) 6% 1%
Hyderabad 53,651 (4,984) 6% 1%
Kolkata 36,070 (3,351) 4% 0%
Ahmedabad 31,216 (2,900) 4% 1%

Office Market
ALL INDIA MARKET SUMMARY
2022 H2 2022
Parameter 2022 Change (YoY) H2 2022 Change (YoY)
Completions
in mn sq m (mn sq ft) 4.59 (49.4) 28% 2.35 (25.3) 7%
Transactions
in mn sq m (mn sq ft) 4.80 (51.6) 36% 2.45 (26.3) 2%
Stock mn sq m (mn sq ft) in 2022
81.71
2022 2022 Vacancy 2022
(879.5) 6% 17.1% 14 bps points decrease
ALL INDIA OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions

3.48
3.08
2.55
2.45
2.40
2.40
2.35
2.35
2.24
2.23
2.22
2.20
2.18
2.09
2.06
2.02
1.99
1.95
1.94
1.87
1.90
1.81
1.75
1.70
1.71
1.60
1.59
1.54
1.39
1.28
1.14
1.04
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• With the pandemic almost completely in the transacted in H2 2019. 22% of the area transacted during the period. While
rear-view mirror, 2022 was expected to see the significant, the current period’s share still marks
• While market traction has been strong over
beginning of a sustained global economic recovery. the sector’s lowest since H1 2017 as IT companies
the major part of 2022, some deceleration in
However, the Ukraine war which began in February continue to maintain a primarily hybrid work
transaction volumes was observed in Q4 2022
2022 with the resulting geopolitical tensions and environment. Moreover, the fortunes of the Indian IT
in key markets such as Bengaluru, Mumbai and
highly inflationary environment especially in the sector are closely aligned with their western clients
Chennai with a few large transactions getting
West, did not bode well for the global economy or and their recent earning downgrades have kept the
delayed. Notably, transaction volumes in Bengaluru
businesses in general. Economic growth typically, IT sector’s expansion plans at bay.
slipped by a substantial 64% in Q4 2022
has a significant bearing on office occupier activity
compared to the preceding quarter. • While direct leasing by the IT sector was subdued,
and it became apparent that the weak economic
it was a strong driver for the co-working/managed
outlook held significant challenges for the global • Transaction volumes in Mumbai and Chennai grew
office sector’s transactions during H2 2022. The
office market in 2022. the most at 59% and 29% YoY respectively during
share of the sector in total transactions increased
the period. Bengaluru with 0.63 mn sq m (6.8 mn
• While these global headwinds weighed down to 21% in H2 2022 from 18% in H2 2021. 125,000
sq ft), constituted 26% of the area transacted. NCR
growth projections for the Indian economy over seats were taken up in managed office premises in
with 0.4 mn sq m (4.8 mn sq ft), is a distant second
the course of the year, it was always apparent 2022, a 49% growth in YoY terms. The occupier’s
and Chennai and Hyderabad follow with 0.3 mn sq
that India would still be the fastest growing large perspective of office space as an enabler of
m (3.5 mn sq ft) each.
economy during the year. The central bank’s recent productivity rather than just an asset continues to
6.8% growth projection for FY 2023 makes India • Mumbai’s ranking in terms of office space solidify and favours the increasing consumption of
a beacon of growth across the Asia-Pacific region consumed in every half yearly period has dropped coworking premises as they are acknowledged as
and the world at large. Additionally, the Indian significantly since the advent of the pandemic. This experts in the domain of workspace delivery.
office market was not as impaired by the remote can be attributed in part to new-age, tech-enabled
• Office completions also staged a recovery in line
working phenomenon as the rest of the world, due occupiers opting to initiate operations or expand
with transactions, growing to 2.35 mn sq m (25.3
to the greater influence that employers have here in lower priced office markets today. The BFSI
mn sq ft) which is the highest since the onset of
and their willingness to adopt flexible co-working sector, which is the mainstay of the Mumbai office
the pandemic and second only to the 3.48 mn sq
options to address current concerns. market, also has not seen any increase in its annual
m (37.5 mn sq ft) reached in H2 2019. Bengaluru
transaction levels since pre-pandemic times. In
• Hence, exceeding most expectations, the Indian alone accounted for 39% of the total office space
contrast, co-working and Other Services sector
office space market concluded 2022 with a completions with 0.9 mn sq m (9.8 mn sq ft), which
have seen significantly higher demand levels.
significant 36% YoY growth in transaction volumes incidentally is also the highest volume of office
and a 28% YoY growth in completions. The 4.8 • The Other Services sector, which include space completions for a market in any half yearly
mn sq m (51.6 mn sq ft) transacted during the year e-commerce, education, healthcare and logistics period ever. Bengaluru, along with Hyderabad,
is second only to the 5.6 mn sq m (60.6 mn sq ft) companies among others, took up the most office made up a massive 62% of the total office space
recorded in 2019 in terms of annual transacted space at 30% or 0.7 mn sq m (7.9 mn sq ft) of coming online during the period.
volumes. Even in terms of half yearly volumes, the the total space transacted during the period. The
• Rental levels were stable or grew across all markets
2.45 mn sq m (26.3 mn sq ft) transacted in H2 2022 Information Technology (IT) sector was the second
in H2 2022, marking it as the second half-yearly
are second only to the 3.08 mn sq m (33.2 mn sq ft) most prolific sector during H2 2022 accounting for
ALL INDIA OFFICE MARKET VACANCY

17.2%
17.1%
17.0%
16.6%
16.7%
15.6%
15.4%
15.1%
14.2%
13.4%
13.1%
13.0%
12.9%
12.6%
12.4%
11.6%
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

OFFICE TRANSACTIONS AND COMPLETIONS period since H1 2019 that this has occurred. Bengaluru and Pune
office markets grew the most during H2 2022 at 11% and 7% YoY
respectively.
OFFICE TRANSACTIONS OFFICE COMPLETIONS
• The strong resurgence in office demand despite the significant
in mn sq m (mn sq ft) in mn sq m (mn sq ft) macroeconomic challenges seen this year, is a testament to the
(YoY changes %) (YoY changes %) strength of the Indian office space market. The central bank’s
last repo rate hike of a relatively lower 35 bps in December 2022,
H2 2022 2022 H2 2022 2022
could signal an easing of the increasing interest rate regime, as
the country focuses on supporting growth rather than curbing
0.32 (3.4) 0.59 (6.4) 0.09 (1) 0.19 (2)
Mumbai (59%) (69%) (-73%) (-59%) inflation. While the Indian economy recovers gradually, global
economic cues remain tense as inflation continues to subdue
0.45 (4.8) 0.83 (8.9) 0.5 (5.4) 0.73 (7.9) growth. With the pandemic having little material impact on
NCR (20%) (39%) (152%) (53%) businesses, the evolving story of global economic growth could
have a greater bearing on market traction going forward.
0.63 (6.8) 1.35 (14.5) 0.91 (9.8) 1.45 (15.6)
Bengaluru (-22%) (19%) (45%) (31%)
SECTOR-WISE TRANSACTIONS SPLIT IN

0.26 (2.8) 0.57 (6.2) 0.15 (1.7) 0.62 (6.7) H2 2021 AND H2 2022
Pune (6%) (61%) (-61%) (-8%)
H2 2021 H2 2022
0.08 (0.9) 0.2 (2.2) 0.01 (0.1) 0.13 (1.4)
Ahmedabad (24%) (88%) (-91%) (-42%)
0.32 (3.5) 0.52 (5.6) 0.13 (1.4) 0.41 (4.4)

Chennai (29%) (44%) (45%) (150%)
0.33 (3.5) 0.62 (6.7) 0.55 (6) 1.04 (11.2) 19% 30%
Hyderabad (-20%) (12%) (56%) (145%) OTHER
SERVICES
0.05 (0.6) 0.11 (1.1) 0 (0) 0.02 (0.2)
Kolkata (1%) (42%) (-100%) (-70%)
2.45 (26.3) 4.8 (51.6) 2.35 (25.3) 4.59 (49.4)

Total (2%) (36%) (7%) (28%)
27% 22%
Source: Knight Frank Research INFORMATION
TECHNOLOGY
MARKET-WISE RENTAL MOVEMENT
18% 21%
CO-WORKING
Rental value range in H2 2022 in 12-month 6-month
INR/sq m/month (INR/sq ft/month) change change
Mumbai 1184 (110) 3% 0%
NCR 901 (83.7) 2% 3%
16% 15%
Bengaluru 872 (81) 11% 0%
BFSI
Pune 775 (72) 7% 1%
Ahmedabad 432 (40.1) 0% 0%
Chennai 659 (61.2) 5% 2% 21% 12%

MANUFACTURING
Hyderabad 700 (65) 6% 2%
Source: Knight Frank Research Source: Knight Frank Research

14 I N D I A R E A L E S TAT E - A H M E D A B A D
Ahmedabad
High affordability, comparatively lower prices per square foot and an improving local
economic environment remain compelling drivers for the Ahmedabad real estate
market and should support market traction going forward.
Residential Market
AHMEDABAD MARKET SUMMARY
2022 H2 2022
Launches
20,809 42% 10,424 24%
(housing units)
Sales
14,062 58% 5,856 25%
(housing units)
Average price in
31,216 (2,900) 3.6% - -
INR/sq m (INR/sq ft)

(in quarters) 2022
Age of unsold
inventory (in
42% quarters) 2022
Change (YoY)
8.0 7.4
10,424
10,385
9,075
8,501
8,809
8,556
8,212
8,422
8,062
8,087
8,101
8,197
8,089
7,800
7,751
7,941
7,491
7,400
6,226
5,865
5,200
4,745
3,986
4,703
4,208
3,398
2,627
2,916
2,520
2,844
1,874
1,323
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• The Ahmedabad residential market has recovered Highway. These products are priced significantly currently stands at 7.4 quarters compared to 8.8
well from the pandemic lows with sales volumes higher than the average residential project due quarters in H2 2021.
increasing steadily and almost reaching pre- to the greater cost of construction, and in equal
• Among the eight markets under our review,
pandemic levels in early 2022. Supply levels also measure due to the highly elevated prices at which
Ahmedabad is the cheapest in per square foot
increased dramatically with developers looking to the land parcels have been acquired. This is a
terms and by extension, yields leaner margins
capitalize on the resurgence in demand and have significant departure from the residential products
to developers. Yielding to the increased cost
aggressively launched projects with larger areas that the premium/luxury residential segment has
pressures and the buoyant demand environment,
and better amenities, at price points that have had on offer earlier; the market response has been
the market saw average prices increase by 4% YoY
steadily increased during this period. encouraging thus far and will be tested further in
in H2 2022.
times to come.
• Sales levels remained strong with 5,865 units
• Unsold inventory has risen 42% YoY at the end of
sold during H2 2022 constituting a 25% growth • Plotted developments, which had seen the
H2 2022 to 22,977 units but is still 39% less than
over H2 2021. In annual terms as well, sales highest increase in sales traction in the aftermath
what the market carried in 2016. High affordability,
growth remained strong at a substantial 58% of the pandemic, saw homebuyer interest wane
comparatively lower prices per square foot and
YoY, despite increasing concerns on the broader significantly in H2 2022 as prices have increased
an improving local economic environment remain
economy. The cumulative 135 bps repo rate hikes substantially in this segment. Homebuyers looking
compelling drivers for the Ahmedabad residential
in August, September and December, in addition for better value, continue to scout for buying
real estate market and should support market
to the 90 bps hike in early 2022, were significant opportunities in the outskirts for properties that
traction despite any macro-economic headwinds.
impediments to homebuyer affordability during the would afford them a significant lifestyle upgrade.
period. While these rate hikes did not impact YoY
• The shift in demand over the past few years to
sales growth, sales levels in H2 2022 were lower
the INR 5-10 mn ticket size, from 15% in H1 2018
than those seen in H1 2022.
to 30% in H2 2022, has been significant. This
• Ahmedabad has historically been the most trend has been observed across locations due
affordable market among the top eight cities under to the need for upgrading the family’s primary
our coverage largely due to the preferences of a residence and to accommodate increasing lifestyle
very price sensitive homebuyer. While underlying requirements. Demand in this mid-segment
demand remains strong, the increasing ticket sizes has also been driven by a significant trend of
of homes being launched has begun to meet some in-migration from rural Gujarat to its frontline cities
resistance in the market during H2 2022. such as Ahmedabad and Surat. The > INR 10
mn ticket-size has also seen its share of sales
• The supply momentum has sustained with the
increase from 8% in H2 2021 to 10% in H2 2022.
number of units launched increasing in every half
Conversely, there has been a gradual decrease
yearly period since H1 2022. The 10,424 units
in the share of sales with ticket sizes < INR 5 mn
launched in H2 2022 mark a 24% increase in YoY
since 2018. The share of sales in this category has
terms.
shrunk from 76% in H1 2018 to 60% in H2 2022.
• The state government’s encouragement to the
• The average age of inventory has reduced
development of skyscrapers by increasing FSI limits
consistently over the past six years signifying the
in the city have also resulted in a spate of such
increasing rate at which ready inventory is getting
projects being launched, especially along the SG
consumed in the market. The age of inventory
MICRO-MARKET CLASSIFICATION
Micro market Locations
Central Paldi, Vasna, Navrangpura, Maninagar, Dudheshwar, Ambawadi
East Naroda, Vastral, Nikol, Kathwada Road, Odhav
North Gota, New Ranip, Tragad, Chandkheda, Motera
South Narol, Vatva, Vinzol, Hathijan
West SG Highway, Prahlad Nagar, Bopal, Thaltej, Science City Road

MICRO-MARKET SPLIT OF NEW LAUNCHES AHMEDABAD TICKET SIZE SPLIT

H2 2021 H2 2022
IN H2 2021 AND H2 2022 COMPARISON OF SALES DURING
H2 2021 AND H2 2022
<5 mn 5-10 mn >10 mn
18%
Central
100%
11%
8% 10%
90%
3%
80%
East
23% 30%
23%
% share of total sales

70%
60%
41%
North
50%
26%
40%
10% 69% 60%
30%
South
10% 20%
10%
28%
West
0%
30%
H2 2021 H2 2022

MICRO-MARKET SPLIT OF SALES AVERAGE RESIDENTIAL PRICE MOVEMENT

H2 2021 H2 2022
IN H2 2021 AND H2 2022
31,216
31,173
18% 31,500
31,000
Central
13%
30,677
31,000
3%
30,354
East
30,354
23%
30,215
30,161
30,500
30,570
38%
29,816
North
28%
29,684
30,139
30,000
30,085
29,386
11%
South
29,816
10%
29,500
30%
West
26% 29,000
28,500
28,376
28,000
27,500
27,000
Sales in H2 2022
25% 26,500
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
YoY increase

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS
Price range in H2 2022 in

Micro Market Location INR/sq m (INR/sq ft) 12 month Change 6 month Change
Ambavadi 64,000-69,800(5,950-6,490) 5% 1%
Central Navrangpura 55,400-65,600(5,150-6,100) 4% 2%
Nikol 26,900-34,400 (2,500-3,200) 4% 2%
East Vastral 23,700-30,100(2,200-2,800) 3% 1%
Chandkheda 27,900-36,900(2,600-3,430) 3% 2%
North Motera 37,600-45,200(3,500-4,200) 4% 2%
Aslali Circle 16,100-19,300 (1,500-1,800) 4% 2%
South Vatwa 18,300-22,600(1,700-2,100) 3% 2%
Bopal 35,500-44,100 (3,300-4,100) 5% 3%
West Prahlad Nagar 59,200-61,300 (5,500-5,700) 4% 1%

MICRO-MARKET HEALTH
Micro-market Unsold Inventory (housing units) (YoY Change) Quarters-to-sell (QTS)
Central 3,286 (21%) 7.9
East 3,307 (83%) 6.4
North 4,754 (58%) 5.4
South 3,376 (10%) 11.8
West 8,254 (47%) 10.8

Office Market
AHMEDABAD MARKET SUMMARY
2022 H2 2022
Completions
in mn sq m (mn sq ft) 0.13 (1.4) -42% 0.01 (0.1) -91%
Transactions
in mn sq m (mn sq ft) 0.20 (2.2) 88% 0.08 (0.9) 24%
Average transacted rent

in INR/sq m/month (INR/sq ft/month) 432 (40.1) 0%
3.30
2022 2022 Vacancy 2022
(35.5) 4% 42.8% 310 bps decrease
AHMEDABAD OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions

0.25
0.24
0.23
0.21
0.21
0.20
0.05
0.13
0.12
0.12
0.10
0.10
0.1 0
0.09
0.08
0.08
0.07
0.04
0.07
0.07
0.06
0.06
0.06
0.05
0.05
0.04
0.08
0.05
0.03
0.03
0.02
0.01
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• For long, Ahmedabad has been amongst the the period. The growth in transactions and the • The Information Technology sector is estimated
smallest office markets in India with annual curtailment of supply caused the vacancy level to constitute the largest tenant base of the
transaction volumes rarely exceeding 0.1 mn sq m (1 to drop to 42.8% in H2 2022 from 45.9% in H2 co-working sector as it has heavily favoured the
mn sq ft). Market volumes have also been subdued 2021. The heightened occupier activity also helped flexibility offered by co-working/ managed office
since the advent of the pandemic with vacancy maintain rent at the same level in YoY terms despite space operators instead of making long-term lease
levels above 45% since H2 2020. the persistently high vacancy level. commitments. Its aversion to taking up traditional
leases in Ahmedabad is also reflected in its modest
• However, 2022 has been a year of robust recovery • CBD West attracted 83% of occupier interest due
8% share of directly transacted (leased or acquired)
for the Ahmedabad office market with occupier to the growing infrastructure and new office space
area during the period.
demand rebounding from pandemic lows and development occurring there in recent times.
scaling 0.2 mn sq m (2.2 mn sq ft) during the year. Locations on Bopal-Ambli Road, Jodhpur Cross • The BFSI sector which accounted for 23% of the
The 88% YoY increase in annual transactions also Road and Vastrapur accounted for most of the space transacted in H2 2022, has gradually been
marks the sharpest spike among all eight office transactions in CBD West. gaining prominence in Ahmedabad, especially with
markets under our coverage. the steady government support given to GIFT City.
• The PBD accounted for 15% of the space
Kotak Mahindra Bank, National Stock Exchange and
• Transaction volumes in the second half of the year transacted while less than 2% was transacted in
ICICI Bank were among the prominent players that
grew by a healthy 24% YoY to 0.08 mn sq m (0.9 the CBD during H2 2022.
leased spaces from this occupier group during this
mn sq ft), much higher than the 13% YoY growth
• The largest transaction of H2 2022 took place period.
seen by all eight markets cumulatively during the
at Jodhpur Cross Road in the CBD West. This
period. The average deal size remained stable in • The fact that Ahmedabad has experienced
0.01 mn sq m (0.11 mn sq ft) lease was inked by
YoY terms indicating a more broad-based recovery heightened occupier traction in a less than ideal
co-working major Smartworks. The co-working
in occupier activity rather than a few exceptionally economic environment, shows the improving
sector continued to drive volumes in the office
large deals causing the growth in transaction stature of its office market. The dedicated push by
market and accounted for a massive 42% of
volumes. the state and central governments to make it an
the area transacted during H2 2022. Opulence,
economic hub, low real estate costs and abundant
• The rate of office space completions was severely DevX, Thinkspace and Incuspaze were some of
connectivity infrastructure within the city make it an
curtailed as prevailing vacancy levels allowed only the managed office space providers that featured
attractive destination for an office occupier.
selective development. Also, building completion prominently during the period.
certificates/approvals were delayed during
AHMEDABAD OFFICE MARKET VACANCY
45.9%
45.8%
41.7%
45.1%
42.8%
35.9%
34.0%
26.4%
24.6%
23.7%
22.2%
19.6%
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
BUSINESS DISTRICT CLASSIFICATION
Business district Micro markets
CBD West Bodakdev, Keshav Baug, Prahladnagar, Satellite, SG Highway, Thaltej
PBD Gandhinagar, GIFT City
CBD Ashram Road, Ellis Bridge, Paldi

BUSINESS DISTRICT WISE TRANSACTIONS SPLIT IN H2 2021 AND H2 2022 SECTOR-WISE TRANSACTIONS SPLIT IN
H2 2021 AND H2 2022
H2 2021
H2 2021 H2 2022
100%
40%
80%
60%
50%
90%
20%
30%
70%
10%
H2 2022
21%
CBD
17% 42%
2% CO-WORKING
58%
CBD West
83%
22%
PBD
15%
38% 23%
Source: Knight Frank Research BFSI
AVERAGE DEAL SIZE TREND (SQ M)

3,423
2,928
9% 17%
MANUFACTURING
2,407
2,350
2,292
2,024
6% 11%
OTHER
SERVICES
1,297
1,135
31% 8%
INFORMATION
TECHNOLOGY

Note: BFSI includes BFSI support services
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
BUSINESS DISTRICT-WISE RENTAL MOVEMENT
Rental value range in H2 2022 in

INR/sq m/month (INR/sq ft/month) 12-month change 6-month change
CBD 488-452 (36-42) 1% 1%
CBD West 420-538 (39-50) 0% 1%
PBD 323-431 (30-40) -1% 0%

22 I N D I A R E A L E S TAT E - B E N G A L U R U
Bengaluru
Bengaluru’s real estate market continued to witness strong momentum in 2022.

Residential sales were at an eight-year high and, the office transaction volume
registered a second-best year in 2022.
Residential Market
BENGALURU MARKET SUMMARY
2022 H2 2022
Launches
43,420 42% 22,197 29%
(housing units)
Sales
53,363 40% 22,686 15%
(housing units)
Average price in
59,320 (5,511) 7% INR 59,320 (INR 5,511) -

(in quarters) 2022
Age of unsold
inventory (in
-15% quarters) 2022
Change (YoY)
5 17.4
28,225
27,849
26,686
26,220
26,677
25,802
24,281
24,190
23,218
22,197
22,234
21,210
21,223
20,894
21,400
20,309
19,851
17,218
17,973
15,556
14,026
14,812
13,336
13,389
13,395
12,878
12,177
11,826
10,806
8,384
9,123
11,402
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• In 2022, Bengaluru’s residential market remained Thus, developers remain vigilant of this current 1,50,000. The share of residential sales of above
vibrant, enduring multiple headwinds arising situation and have remained cautious of launching INR 10 mn category grew to 28% in 2022 from 14%
from the Omicron wave in the early months of new projects during the second half of 2022. in 2018.
the year, followed by a steep rise in raw material However, this current situation is not likely to last for
• In H2 2022, the weighted average price of
cost, consumer inflation and a sharp increase more than a short period of time.
residential units in Bengaluru has increased by
in borrowing costs. Overall, residential sales in
• During H2 2022, South Bengaluru witnessed 7% YoY to INR 5,511 per sq ft. The rise in prices
Bengaluru in 2022 grew by 40% with 53 363 units
46% of the total launches supported by end user is attributed to strong demand along with a rise
sold in the city.
demand in the micro-market. Distant peripherals in the cost of construction. The increased cost
• During the second half of the year 2022, buyer in South Bengaluru such as Attibele, Sarjapur, of construction is primarily witnessed in new
sentiment continued to remain strong despite a and Kanakpura Road attracted some of the key launches. However, this price rise has not deterred
sharp rise in interest rates. 26,686 residential units launches by Grade A and Grade B developers buyer sentiment thus far.
were sold in H2 2022 registering a 15% growth in across categories, viz. affordable, mid and luxury
• Due to strong demand and softening in launches,
a year. In line with past trends, South Bengaluru segments. The development of metro lines on
the volume of unsold inventory reduced to
continued to remain the most popular micro-market Bannerghatta Road, Hosur Road, Outer Ring Road
57,398 units in H2 2022, lowest in a decade. As
and garnered a share of 46% of the residential connecting key employment clusters in Outer Ring
a result, the quarters-to-sell (QTS) for Bengaluru
sales in the city during H2 2022. Housing demand Road (ORR), Secondary Business District (SBD)
has narrowed to 5 quarters, which is a historical
in this cluster continues to remain steady due to the and Peripheral Business District (PBD) South is an
low. However, the age of unsold inventory (AoI)
proximity of prominent tech parks and employment added push factor boosting developers’ preference
continues to remain high at 17.4. The high AoI does
clusters located at Electronic City and Outer Ring to launch their projects in South Bengaluru.
not correlate with the healthy residential demand.
Road (ORR).
• East Bengaluru is the second most preferred The AoI seems to be upraised due to the presence
• East Bengaluru is another sought after region for micro-market for developers as well as consumers. of stalled projects in the city. Some of these
residential demand in Bengaluru. In H2 2022, East In H2 2022, East Bengaluru comprised 31% of the projects were launched over a decade ago and
Bengaluru accounted for 33% of the total launches total launches in the city. The residential market continue to remain on hold for various reasons.
in the city. The demand, which was primarily in East Bengaluru is supported by both end users
concentrated in Whitefield, K R Puram, etc. has now as well as investors. In the last few years, growing
gradually expanded to peripheral areas of micro- office leasing along with the extension of the
markets such as Hoskote. Purple Line Metro Rail to Whitefield has supported
developer as well as home buyer sentiments in the
• The pace of growth in residential launches softened
region.
in H2 2022. Although the launches grew by 29%
YoY during this six-month period, when measured • In the last few years, the sale of high-ticket price
sequentially, the half yearly growth rate was merely residential units of more than INR 10 mn has
5%. One of the key determinants of residential significantly strengthened, supported by a growth
demand in Bengaluru which boosts developer in the high paying Information Technology sector
confidence is the health of the Information and consistent expansion of startups and unicorns
Technology sector which translates into job in the city which has boosted the earnings of
creation and salary growth. Currently, the IT sector the population in Bengaluru. As per Karnataka
which had grown robustly during the pandemic Economic Survey 2021-22, the nominal per capita
is indicating signs of consolidation, due to global income in Bengaluru stood at INR 5,41,638, which is
macroeconomic headwinds in the last few months. significantly higher than the national average of INR
Central MG Road, Lavelle Road, Langford Town, Vittal Mallya Road, Richmond Road
East Whitefield, Old Airport Road, Old Madras Road, KR Puram, Marathahalli
West Malleshwaram, Rajajinagar, Yeswanthpur, Tumkur Road, Vijayanagar
North Hebbal, Bellary Road, Hennur, Jakkur, Yelahanka, Banaswadi
South Koramangala, Sarjapur Road, Jayanagar, JP Nagar, HSR Layout, Kanakapura Road, Bannerghatta Road

MICRO-MARKET SPLIT OF NEW LAUNCHES BENGALURU TICKET SIZE SPLIT

H2 2021 H2 2022
H2 2021 AND H2 2022
<5 mn 5-10 mn >10 mn
0%
Central
100%
0%
21% 28%
90%
20%
80%
East
31%

70%
60%
28%
47%
North
50% 46%
13%
40%
47%
30%
South
46% 20% 32% 26%
10%
5%
West
0%
10%
H2 2021 H2 2022
MICRO-MARKET SPLIT OF SALES

IN H2 2021 AND H2 2022
H2 2021 H2 2022 AVERAGE RESIDENTIAL PRICE MOVEMENT
(INR/SQ M)
0% 70000
Central
0%
26%
East
33% 65000
30%
North
59,315
13%
57,674
38% 60000
South
46%
55,435
6%
53,605
West
53,572
53,120
52,959
8%
52,205
55000
52,205
51,893
51,721
51,452
50,881
50,386
50,053
49,396
50000
45000
New launches in
2022
42% 40000
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
YoY increase


Langford Town 1,61,460-2,36,808 (15,000-22,000) 3% 3%
Central Lavelle Road 2,26,044-3,22,920 (21,000-30,000) 0% 1%
KR Puram 43,056-76,424 (4,000-7,100) 8% 1%
Whitefield 51,129-86,090 (4,750-7,998) 8% 4%
East Marathahalli 45,209-82,883 (4,200-7,700) 6% 1%
Hebbal 59,202-1,29,168 (5,500-12,000) 13% 3%
Yelahanka 45,209-83,959 (4,200-7,800) 9% 3%
Thanisandra 46,285-95,800 (4,300-8,900) 10% 0%
North Hennur 45,209-96,876 (4,200-9,000) 10% 1%
Sarjapur Road 46,285-91,494 (4,300-8,500) 11% 5%
Kanakpura Road 45,209-80,730 (4,200-7,500) 10% 0%
Electronic City 37,674-69,966 (3,500-6,500) 11% 5%
South Bannerghatta Road 45,209-78,039 (4,200-7,250) 9% 1%
Yeshwantpur 64,584-1,17,328 (6,000-10,900) 6% 0%
Malleswaram 88,265-1,56,078 (8,200-14,500) 3% 4%
Rajajinagar 89,341-1,71,148 (8,300-15,900) 10% 2%
West Tumkur Road 40,365-67,275 (3,750-6,250) 11% 1%
MICRO-MARKET HEALTH
Central 137(-16.4%) 4.5
East 9260 (-33.5%) 3.5
North 13032 (-15.3%) 5.5
South 30384 (-4.1%) 6.6
West 4,594 (-25.9%) 5.2

Office Market
BENGALURU MARKET SUMMARY
2022 H2 2022
Completions
in mn sq m (mn sq ft) 1.45 (15.6) 30.6% 0.91(9.8) 45%
Transactions
in mn sq m (mn sq ft) 1.35 (14.5) 18.9% 0.63(6.8) -22%

in INR/sq m/month (INR/sq ft/month) 872 (81) 11%
18.7
2022 2022 Vacancy 2022
(201.6) 84% 14.1% 110 bps Increase
BENGALURU OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions
0.91
0.80
0.77
0.72
0.78
0.71
0.70
0.65
0.64
0.63
0.63
0.60
0.57
0.56
0.56
0.55
0.54
0.54
0.50
0.49
0.48
0.46
0.44
0.42
0.41
0.37
0.37
0.36
0.34
0.34
0.33
0.33
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• Continuing with the historical trend, Bengaluru momentum from the IT sector moderated in H2 development of transport infrastructure led by the
remained the top performer in office leasing 2022 accounting for 23% of the total leasing. upcoming launch of the 13 km elevated Purple
recording 28% of the total transactions across the About 0.15 mn sq m (1.6 mn sq ft) of office space Line Metro corridor between Baiyappanahalli and
eight key markets. In 2022, Bengaluru registered was leased by the IT sector, a sharp moderation Whitefield has boosted occupier interest in this
1.35 mn sq m (14.5 mn sq ft) of office leasing from the 0.37 mn sq m (4 mn sq ft) during the micro-market. Development of infrastructure has
volume, a 19% annual growth. The prominent corresponding period in 2021. Continuation in also infused new supply in this micro-market.
Information Technology (IT) sector, a strong start- work from home and hybrid work models by the IT During H2 2022, PBD East accounted for 30% of
up ecosystem, and the expansion of new age companies along with cost optimization strategies the new supply infused in the city.
companies in sectors like e-commerce, fin-tech adopted by the tech companies dependent on the
• Overall, Bengaluru witnessed a supply infusion of
and ed-tech has buoyed the demand for office business conditions in the US and the European
0.91 mn sq m (9.8 mn sq ft) during H2 2022. As a
leasing in Bengaluru. region, justifies the moderation in office space
result, the vacancy level in the city has increased
leasing by the tech firms in H2 2022.
• Transaction volume in H2 2022 moderated to 0.63 from 13% in the beginning of 2022 to 14.1%
mn sq m (6.8 mn sq ft), a 22% decline from the • ORR accounted for the largest share of 38% of during H2 2022. However, a high level of vacancy
corresponding period in 2021. The precautionary the total office space leasing volume followed indicates adequate availability of leasing space for
stance of occupiers due to headwinds arising from by PBD East during H2 2022. ORR continues occupiers in the near future.
economic uncertainties in the US and the European to be an attractive micro-market as the location
• The average transacted rentals for Bengaluru
region has caused moderation in office space includes many established business parks set
surged by 11% YoY to INR 872/sq m/month (INR
leasing in the second half of the year, especially in up by Grade A developers with quality space and
81/sq ft/month) in 2022. The healthy demand for
the last quarter. convenience provided for the occupiers. Owing
occupancy during the year has led to a spike in
to its attractiveness to occupiers, along with
• Sectorally, the co-working sector recorded rent in the city. PBD East and PBD North are the
the development of new infrastructure such as
maximum leasing volume accounting for 27% of two key markets which witnessed a sharp rise in
the metro line connecting Silk Board to Hebbal,
all the transactions in H2 2022. In H2 2022, a total rent. The demand for office space in PBD North
developer sentiment in the ORR market is also
of 0.17 mn sq m (1.8 mn sq ft) of leasing was done has picked up significantly in the last few years with
strong. During H2 2022, ORR witnessed a supply
by the co-working sector with the deals primarily increased deals in Yelahanka and Thanisandra. The
infusion of 0.5 mn sq m (5.5 mn sq ft) primarily in
concentrated in the ORR micro-market. Amidst increasing demand for satellite offices propelled
the existing tech parks backed by prominent Grade
global economic uncertainties, occupiers have by concurrent residential demand has boosted the
A developers.
chosen the flexibility and plug and play premise of office transactions in this region. Overall, Bengaluru
the co-working space in the city during the second • PBD East registered 33% of the transactions being the most favored tech city with an adequate
half of the year. in H2 2022. From a mere 10% leasing share in talent pool, strengthening of rentals is favourable to
2017, the demand for office space in this region the investors as well.
• In contrast to the historical trend, the leasing
has significantly increased in the last 5 years. The
BENGALURU OFFICE MARKET VACANCY
14.1%
13.0%
12.3%
11.3%
9.3%
8%
8%
7%
6.5%
6%
4.8%
4%
4%
4%
3.5%
3%
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

Central Business District (CBD) and Off CBD MG Road, Residency Road, Cunningham Road, Lavelle Road, Richmond Road, Infantry Road
Secondary Business District (SBD) Indiranagar, Koramangala, Airport Road, Old Madras Road
Peripheral Business District (PBD) East Whitefield
Peripheral Business District (PBD) South Electronic City, Bannerghatta Road
Peripheral Business District (PBD) North Thanisandra, Yelahanka, Devanahalli
Peripheral Business District (PBD) West Vijaynagar, Tumkur Road, Mysore Road
Outer Ring Road (ORR) Hebbal ORR, Marathahalli ORR, Sarjapur Road ORR

BUSINESS DISTRICT WISE TRANSACTIONS SPLIT IN H2 2021 AND H2 2022 H2 2021 AND H2 2022
H2 2021 H2 2022
H2 2021
100%
40%
80%
60%
50%
90%
20%
30%
70%
10%
H2 2022
8%
CBD & Off-CBD 4% 5%
4%
BFSI
15%
SBD
4%
39%
PBD East
38% 42% 46%
INFORMATION
TECHNOLOGY
15%
PBD South
33%
5%
PBD North
15%
25% 11%
17%
MANUFACTURING
ORR
5%
1%
PBD West
0%
22% 15%
OTHER
Source: Knight Frank Research SERVICES
6% 24%
CO-WORKING

8,444
7,246
5,412
5,228
5,249
5,130
4,541
4,378
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

CBD & Off-CBD 1184-2045 (110-190) 5.3% 1.7%
SBD 861-1722 (80-160) 9.1% 0.0%
PBD East 592-807 (55-75) 13% 6.1%
PBD South 538-915 (50-85) 12.5% 6.7%
PBD North 538-915(50-85) 13% 3.8%
ORR 1023-1184 (95-110) 1% 0.0%

32 I N D I A R E A L E S TAT E - C H E N N A I
Chennai
Chennai’s sales momentum improved as the sales strengthened led by

rising inquiries and conversions from home buyers.
Residential Market
CHENNAI MARKET SUMMARY
2022 H2 2022
Launches
15,416 20.6% 7,846 6.6%
(housing units)
Sales
14,248 19.1% 7,297 17.6%
(housing units)
Average price in
46,285 (4,300) 6.2% - -

(in quarters) 2022
Age of unsold
inventory (in
9.0% quarters) 2022
Change (YoY)
4.3 11.3
LAUNCHES AND SALES TREND (NO. OF UNITS) Launches (Units) Sales (Units)
9,102
9,091
8,979
8,792
8,850
8,450
8,585
7,980
7,846
7,737
7,762
7,570
7,401
7,360
7,297
6,951
6,670
6,523
6,206
6,035
5,854
5,815
5,673
5,751
5,424
4,800
3,850
3,714
3,780
3,520
3,200
2,981
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• The residential market in Chennai has been and Poonamalle in the west made up 33% of the
gradually improving since H2 2020. Chennai’s total share.
sales growth remained steady with a gain of
• The INR 5-10 mn mid-segment has always made
19% YoY to 14,248 units in 2022. As the sales
the most sales; this share increased to 49% in H2
momentum strengthened, the number of inquiries
2022 from 44% in H2 2021. In the second half of
and conversions from homebuyers increased
2022, the share of INR 5 mn fell from 33% to 24%
steadily throughout the city, helped along by
in the first half of 2021.
a sharp improvement in consumer sentiment
towards home ownership. In the same time frame, • Compared to H2 2021, 23% of all sales in the
launches rose by 21% YoY to 15,416 units. second half of 2022 were made up of projects
with ticket sizes greater than INR 10 mn. In order to
• Chennai reported an 18% increase in sales to 7,297
acquire larger spaces with better amenities and to
units in the past six months. Due to Chennai’s
raise the standard of living generally, homebuyers
growth as an IT hub and the abundance of job
have grown more inclined to look into houses in
possibilities it has brought about, the city has been
peripheral areas that were previously off their radar.
able to reduce the consequences of rising interest
rates and recessionary fears. The city will continue • Residential demand is largely focused on the
to experience a robust rise over the future quarters ready-to-move-in properties and has caused the
thanks to improved market circumstances and a average age of inventory in Chennai to reduce to
sizable number of upcoming projects. 11.3 quarters in H2 2022 from 14.3 quarters in the
year ago period.
• Developers introduced 7,846 units in H2 2022,
representing a 7% YoY increase in supply, as they • There has also been a 6.2% YoY increase in prices
assessed the shifting market sentiment. During in the city. This price increase can be interpreted as
H2 2022, some of the prominent developers a sign of regaining sales momentum.
participating in the market included Alliance
Group, Navin Housing, Casagrand Builders,
Radiance Realty Developers (NAPC properties), and
Baashyaam Constructions. Increased development
activity was observed in places like Pudur,
Perumbbur, Kolapakkam, and Tiruvottiyur during
that time.
• Sales during the period were mostly concentrated

in the south and west micro markets, which
together accounted for 92% of all sales. The micro-
markets in the south near OMR and GST Roads
continue to attract most of the homebuyer interest,
accounting for 59% of the entire share, while more
reasonably priced areas like Porur, Valasaravakkam,
Central Chennai T. Nagar, Alandur, Nungambakkam, Kodambakkam, Kilpauk
West Chennai Porur, Ambattur, Mogappair, Iyyappanthangal, Sriperumbudur
South Chennai Perumbakkam, Chrompet, Sholinganallur, Guduvancheri, Kelambakkam
North Chennai Tondiarpet, Kolathur, Madhavaram, Perambur

MICRO-MARKET SPLIT OF NEW LAUNCHES CHENNAI TICKET SIZE SPLIT

H2 2021 H2 2022
H2 2021 AND H2 2022
<5 mn 5-10 mn >10 mn
2%
Central
100%
3%
23% 27%
90%
3%
80%
North
4%

70%
60% 44% 49%

49%
South
50%
49%
40%
45%
30%
West
44% 20%
33%
24%
10%
0%
H2 2021 H2 2022
MICRO-MARKET SPLIT OF SALES AVERAGE RESIDENTIAL PRICE MOVEMENT

H2 2021 H2 2022
IN H2 2021 AND H2 2022 (INR/SQ M)
5% 60,000
Central
5%
50,591
50,179
50,213
48,707
48,782
49,470
48,567
3%
47,245
47,110
North
46,285
45,661
4%
44,886
44,509
50,000
43,619
43,594
57%
40,843
South
59%
34% 40,000
West
33%
30,000
20,000
10,000
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022


Anna Nagar 119,028-120,083 (11,058-11,156) 5% 1%
Central Kilpauk 119,028-120,083 (11,058-11,156) 5% 2%
Kolathur 61,828-62,442 (5,744-5,801) 4% 2%
North Perambur 70,171-71,247 (6,519-6,619) 3% 1%
Perumbakkam 48,782-56,748 (4,532-5,272) 4% 0%
South Kelambakkam 42,862-44,821 (3,982-4,164) 3% 1%
Porur 60,171-69,105 (5,590-6,420) 5% 1%
West Mogappair 68,082-76672 (6,325-7,123) 5% 0%
Chennai residential market continues to witness improved

sales momentum in H2 2022
MICRO-MARKET HEALTH
Central 288 (-33%) 1.8
North 463 (11%) 3.9
South 5,504 (-10%) 2.9
West 7,928 (31%) 7.1

Office Market
CHENNAI MARKET SUMMARY
2022 H2 2022
Completions
in mn sq m (mn sq ft) 0.41 (4.4) 150.1% 0.13 (1.4) 45%
Transactions
in mn sq m (mn sq ft) 0.52 (5.6) 44.5% 0.32 (3.5) 29%

in INR/sq m/month (INR/sq ft/month) 659 (61.2) 5.1%
7.66
2022 2022 Vacancy 2022
(82.4) 5.7% 13.3% 29 bps decline
CHENNAI OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions
0.32
0.31
0.29
0.28
0.29
0.30
0.30
0.25
0.24
0.20
0.18
0.18
0.18
0.17
0.16
0.16
0.14
0.12
0.13
0.11
0.11
0.11
0.10
0.09
0.09
0.08
0.07
0.03
0.03
0.02
0.01
0.01
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• The year 2022 proved to be a great year for the contributor as global businesses such as Wells transactions.
Chennai office market with the city recording the Fargo and Bank of America scooped up office
• Rentals climbed in the majority of submarkets
largest transaction volume in the past ten years. space in the city. The BFSI segment comprised
including the CBD, South West, Suburban South,
Transaction volumes in 2022 climbed 45% YoY 21% of the total pie.
and Peripheral South, contributing to a 5.1% YoY
to 0.52 mn sq m (5.6 mn sq ft), driven by strong
• The co-working sector maintained its momentum, gain in overall rentals in 2022. The key causes
leasing momentum. The market fostered a
accounting for 16% of space taken up in H2 2022. for the increase in rentals were a healthy leasing
broad tenant base that supported demand in a
Workez and CoWrks were the most active co- momentum, increased occupier confidence, and
challenging environment.
working companies during this time. new office supply at higher prices. In terms of INR/
• Annual office completions grew by 150.1% YoY to sq ft/month, the Chennai office market remains
• Chennai also observed demand from start-ups and
0.41 mn sq m (4.4 mn sq ft), the highest since 2014. affordable compared to peer markets.
higher queries from healthcare occupiers in H2
• The IT industry was the mainstay of the market 2022. Healthcare occupiers took up 0.2 mn sq ft or • Chennai’s vacancy rate stood at 13.3% in H2
during H2 2022 contributing 30% of the space 6% of the overall pie in H2 2022. 2022 which is comparable to other big markets
transacted during the quarter. This is a very like Bengaluru. Demand and supply dynamics are
• 38% of the office space transacted in SBD OMR
positive indicator for the Chennai market as the city expected to remain in sync, ensuring vacancy stays
in H2 2022 occurred in Kandanchavadi, Taramani,
continues to attract major IT companies. within a narrow range.
and Kottivakkam. The SBD at 20%, remained close
• The BFSI industry remained the second largest behind the SBD OMR in terms of proportion of
CHENNAI OFFICE MARKET VACANCY

22.5%
19.3%
13.9%
13.3%
13.0%
16.8%
12.7%
12.2%
12.4%
11.7%
11.0%
10.6%
10.2%
8.8%
11.0%
10.2%
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
Central Business District (CBD and Off CBD) Anna Salai, RK Salai, Nungambakkam, Greams Road, Egmore, T Nagar
Suburban Business District (SBD) Mount-Poonamallee Road, Porur, Guindy, Nandambakkam
SBD-Old Mahabalipuram Road (OMR) Perungudi, Taramani
Peripheral Business District (PBD)-OMR and Grand
Southern Trunk Road (GST) OMR beyond Perungudi Toll Plaza, GST Road
PBD-Ambattur Ambattur


BUSINESS DISTRICT WISE TRANSACTIONS SPLIT IN H2 2021 AND H2 2022
H2 2021 AND H2 2022
H2 2021 H2 2021 H2 2022
100%
40%
80%
60%
50%
90%
20%
30%
70%
10%
H2 2022
36%
SBD OMR
38%
12% 20%
19% BFSI
PBD OMR & GST
26%
33%
SBD
20%
20% 28%
10%
INFORMATION
CBD TECHNOLOGY
12%
3%
PBD Ambattur
3%
Source: Knight Frank Research 39% 6%

MANUFACTURING
4,620
3,347
17% 31%
OTHER
3,012
SERVICES
2,906
2,587
2,531
2,244
1,602
11% 16%
CO-WORKING

H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

CBD 646–1,023 (60–95) 2% 1%
SBD 538–861 (50–80) 5% 1%
SBD OMR 538–1023(50–95) 5% -1%
PBD OMR and GST Road 269–538 (25–50) 4% -2%
PBD Ambattur 269–484 (25–45) 2% -1%

40 I N D I A R E A L E S TAT E - H Y D E R A B A D
Hyderabad
Hyderabad growth remain robust in 2022. The city continues to remain a desirable
location for investors as well as end users.
Residential Market
HYDERABAD MARKET SUMMARY
2022 H2 2022
Launches
43,847 22.7% 22,491 18%
(housing units)
Sales
31,046 27.7% 16,353 32%
(housing units)
Average price in
53,651 (4,984) 5.6% - -

(in quarters) 2022
Age of unsold
inventory (in
69% quarters) 2022
Change (YoY)
4.5 6.6
22,491
21,356
19,024
16,712
16,353
14,693
12,344
11,974
8,404
8,313
8,334
8,065
7,278
7,780
7,901
7,933
7,123
7,700
7,289
5,900
5,700
5,430
6,342
5,740
5,457
5,260
4,782
4,422
3,706
2,571
1,698
940
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• Hyderabad’s strong sales momentum continued commercial core and office centres, HITEC City, requirements of work and education from home
as sales increased by 28% YoY to 31,046 units in Gachibowli, and Nanakramguda. has resulted in a substantial change in demand for
2022, the most sales ever seen since 2011. Sales in ticket sizes higher than INR 5 mn.
• The mid segment of INR 5-10 mn has always
H2 2022 increased by 32% YoY to 16,353 units.
constituted the bulk of sales and accounted for • Hyderabad’s residential prices rose 5.6% YoY in H2
• Developers continued to capitalize on this shift in 45% in H2 2022 as well. Since H1 2018, this 2022. Despite the price rise, the city continues to
sentiment by launching 43,847 units in 2022. Total segment’s share has remained in the range of 45% remain a desirable location for investors as well as
launches in H2 grew by 18% YoY to 22,491. 61% to 52%. end users.
of these units were launched in West Hyderabad
• Longer-term trends indicate a gradual fall in the • The average age of inventory in Hyderabad has
with My Home Constructions, Rajapushpa
share of the <INR 5 mn segment from 29% in H1 decreased from 7.6 quarters in H2 2020 to 6.6
Properties and DSR Builders & Developers
2018 to 15% in H2 2022. The rise in price over the quarters in H2 2022 as residential demand largely
featuring prominently among developers active
years led to limited availability of options in this remained focused on ready to move in properties.
in West Hyderabad. Locations such as Tellapur,
price range.
Kollur, Gandipet and Narsingi saw most of this
development activity. • In contrast, the >INR 10 mn segment gained
traction, increasing its proportion of sales from
• West Hyderabad continued to have strong demand,
19% in H1 2018 to 40% in H2 2022. The need to
accounting for 62% of all sales in H2 2022 as
upgrade the family’s primary dwelling to meet the
purchasers preferred to be close to the city’s
West Hyderabad continued to have strong demand, as purchasers preferred to be close

to the city’s commercial core and office centres
HMR – Central Begumpet, Banjara Hills, Jubilee Hills, Panjagutta, Somajiguda
HMR – West Kukatpally, Madhapur, Kondapur, Gachibowli, Raidurgam, Kokapet
HMR – East Uppal, Malkajgiri, LB Nagar
HMR – North Kompally, Medchal, Alwal, Quthbullanpur
HMR – South Rajendra Nagar, Shamshabad

MICRO-MARKET SPLIT OF NEW LAUNCHES HYDERABAD TICKET SIZE SPLIT

H2 2021 H2 2022
H2 2021 AND H2 2022
<5 mn 5-10 mn >10 mn
5%
Central
100%
4%
30% 40%
90%
10%
80%
East
10%

70%
60%
16% 48%
North 45%
50%
19%
40%
5%
30%
South
6% 20%
23%
10%
64% 15%
West
0%
61%
H2 2021 H2 2022
AVERAGE RESIDENTIAL PRICE MOVEMENT

MICRO-MARKET SPLIT OF SALES (INR/SQ M)
H2 2021 H2 2022
IN H2 2021 AND H2 2022
60000
53,651
52,937
7%
50,806
Central
50,803
50,300
4%
48,438
47,071
9%
50000
East
44,025
43,185
9%
48,535
41,129
39,934
39,934
18%
38,966
38,966
North
37,771
19%
40000
5%
South
5%
60%
West 30000
62%
20000
10000
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022


Banjara Hills 145,863-155,045 (13,551-14,404) 7% 2%
Central Jubilee Hills 142,397-160,233 (13,229-14.,886) 7% 1%
LB Nagar 66,134-68,158 (6,144-6,332) 3% 1%
East Nacharam 55,973-62,431 (5,200-5,800) 4% 1%
Kompally 51,334-59,934 (4,769-5,568) 5% 1%
North Sainikpuri 54,121-56,716 (5,028-5,269) 4% 1%
Rajendra Nagar 54,121-56,716 (5,028-5,269) 3% 1%
South Bandlaguda 70,429-83,841 (6,543-7,789) 5% 1%
Kokapet 78,588-89,567 (7,301-8,321) 6% 1%
West Manikonda 77,242-80,956 (7,176-7,521) 5% 1%

Hyderabad is the only market out of the eight under consideration that
has not had a price decline since H1 2013
MICRO-MARKET HEALTH
Central 749 (8%) 1.7
East 3,087 (88%) 5.1
North 4,854 (68%) 3.9
South 2,315 (88%) 6.7
West 20,404 (68%) 4.8

Office Market
HYDERABAD MARKET SUMMARY
2022 H2 2022
Completions
in mn sq m (mn sq ft) 1.04 (11.2) 145.5% 0.56 (6.0) 56%
Transactions
in mn sq m (mn sq ft) 0.62 (6.7) 12.2% 0.33 (3.5) -20%

in INR/sq m/month (INR/sq ft/month) 700 (65.0) 5.8%
9.27
2022 2022 Vacancy 2022
(99.7) 12.7% 15.4% 316 bps decline
HYDERABAD OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions

0.83
0.64
0.55
0.49
0.45
0.40
0.41
0.36
0.35
0.36
0.37
0.35
0.33
0.31
0.30
0.30
0.29
0.26
0.33
0.25
0.22
0.22
0.22
0.20
0.20
0.19
0.16
0.15
0.14
0.14
0.12
0.07
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• The Hyderabad office market grew in 2022 with • The IT industry remained the mainstay of the from start-ups and inquiries from healthcare
transaction volumes remaining consistent with the market during H2 2022 accounting for 31% of the occupiers who took up 0.9 mn sq ft or 25% of the
previous year’s annual total of 0.62 mn sq m (6.7 mn space transacted during the quarter. This was total pie.
sq ft). The market has traditionally been anchored mostly driven by large-scale transactions inked by
• The SBD dominated occupier interest during H2
by the Information Technology (IT) sector, but it has IT giants. Growth in IT transactions is a very positive
2022, accounting for an astounding 80% of all
nurtured a broad tenant base that has supported indicator for the Hyderabad market, as the city
space transacted during the period. HITEC City
demand during H2 2022 in a challenging climate continues to attract IT players.
remains the nerve hub of the Hyderabad office
where the IT sector deferred its expansion plans.
• While IT sector businesses accounted for a lower market, accounting for 69% of all office space
• Annual office completions jumped 44.5% YoY to percentage of transactions at 31% during H2 transacted.
1.04 mn sq m (11.2 mn sq ft), a decadal high. The 2022, they were essential in driving up volumes
• In 2022, rentals climbed 5.8% YoY. Despite losing
city saw supply infusion of 0.41 mn sq m (4.4 mn generated by managed office/co-working players
momentum in the first part of the year due to
sq ft) in 2022, a 150% increase over the same throughout the period.
Omicron infections, the city saw rents rise in the
period last year. 92% of the total office supply
• Following its strong performance in H1 2022, second half of the year, driven by restored demand
received in Hyderabad in 2022 was received in
the co-working sector continued its momentum, for quality assets in high-demand regions such as
West Hyderabad with HITEC City and the Financial
accounting for 10% of space taken up in H2 HITEC City and the Financial District.
District comprising 44% and 34% respectively
2022. From the co-working pack, Urban Desk and
of the total completions. In 2022, faster project
Tablespace were the most active players during the
completions for the city relative to a stable
period.
transaction level resulted in a 3.2 percentage point
increase in vacancy levels to 15.4%. • In H2 2022, Hyderabad saw increased demand
HYDERABAD OFFICE MARKET VACANCY
15.4%
13.7%
12.3%
12.2%
9.4%
8.9%
8.2%
7.6%
7.4%
7.1%
7.0%
6.8%
6.5%
5.9%
5.2%
5.1%
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
Central Business District (CBD and off CBD) Banjara Hills, Jubilee Hills, Begumpet, Ameerpet, Somajiguda, Himayat Nagar, Raj Bhavan Road, Punjagutta
Suburban Business District (SBD) HITEC City, Kondapur, Manikonda, Kukatpally, Raidurg
Peripheral Business District (PBD) West Gachibowli, Kokapet, Madinaguda, Nanakramguda, Serilingampally
Peripheral Business District (PBD) East Uppal, Pocharam

H2 2021 AND H2 2022
H2 2021
H2 2021 H2 2022
100%
40%
80%
60%
50%
90%
20%
30%
70%
10%
H2 2022
1%
CBD & off CBD
0% 23% 6%
BFSI
0%
PBD East
0%
7%
PBD West
20%
18% 31%
INFORMATION
92% TECHNOLOGY
SBD
80%
35% 1%
MANUFACTURING
16,285
13,148
4% 52%
OTHER
SERVICES
7,403
6,992
6,216
5,720
4,520
3,772
21% 10%
CO-WORKING

H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

CBD and Off-CBD 592-646 (55-60) 1% 1%
SBD 753-861 (70-80) 6% 1%
PBD West 592-646 (55-60) 5% 0%
PBD East 323-377 (30-35) 1% 1%

48 I N D I A R E A L E S TAT E - K O L K ATA
Kolkata
In 2022, Kolkata’s primary residential market continued to benefit from the 2% stamp
duty remission which was extended thrice during this calendar year to provide relief to
homebuyers.
Residential Market
KOLKATA MARKET SUMMARY
2022 H2 2022
Launches
12,330 64% 5,644 6%
(housing units)
Sales
12,909 -10% 5,819 -37%
(housing units)
Average price in
36,070 (3,351) 4% 36,070 (3,351) -

(in quarters) 2022
Age of unsold
inventory (in
-3% quarters) 2022
Change (YoY)
6.1 13.3
11,891
12,073
11,448
10,680
10,339
9,764
5,622
9,170
9,093
9,290
8,109
7,308
7,090
6,678
6,591
6,686
6,393
6,176
6,038
5,975
6,140
5,819
5,315
5,115
5,644
4,588
5,027
3,290
2,937
2,195
858
627
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• In 2022, Kolkata’s primary residential market • In H2 2022, new launches registered a 6% YoY • Demand sustenance from homebuyers coupled
continued to benefit from the 2% stamp duty growth over H2 2021. Of all the micro-markets, with high input costs have led to a 4% YoY increase
remission which was extended thrice during this Rajarhat and South Zone constituted 45% and in average residential prices in H2 2022. Several
calendar year – from 31st March to 31st September 36% of the total units launched in this period. credible developers are now commanding a
and thereafter to 31St December 2022 to provide Compared to H2 2021, Rajarhat’s share has premium for their under-construction residential
relief to homebuyers. However, due to the long- swelled from 18% to the current level of 47% as a developments and launching new projects at
winded nature of this rebate coupled with gradual few large housing projects were launched in this relatively higher price points compared to the year
increase in the repo rates translating into higher key commercial and residential micro-market. ago period. Due to the multiple repo rate hikes in
home loan costs, the annual sales of 12,909 units Rajarhat’s connectivity to other parts of Kolkata 2022, housing affordability has been impacted
noted a 10% YoY degrowth, despite a healthy sales and enhanced social infrastructure has been where some moderation may come to the fore
velocity. The sales velocity moderated during the instrumental for the housing demand here. as we herald 2023. While there are concerns
second half of the year as home loan rates started regarding the inflationary pressures on home loan
• In line with past trends, the share of ticket sizes
looking northwards, which impacted the affordable interest rate and property prices, the stamp duty
< INR 5 mn continued to command the lion’s
and mid-segment residential products which are rebate opportunity for homebuyers continues until
share in the overall sales volume. In H2 2022,
sensitive to any interest rate movement. 31st December 2022.
this category comprised 62% of Kolkata’s overall
• In the third quarter of 2022, sales had slowed down sales, moderating marginally from the 64% share • Healthy sales volume in the past one year has led
due to the Durga Puja festivities, which dragged recorded in H2 2021. The share of projects with to a decline in unsold inventory which now stands
the total annual sales down. Consequently, the H2 ticket sizes of INR 5-10 mn has remained stable at at 20,686 units, a 3% YoY decline.
2022 sales volume depicted a 37% YoY decline 25% over the past one year. However, the share of
• The decline in Kolkata’s unsold inventory has also
despite a healthy uptick in sales volume in Q4 residential products in > INR 10 mn category has
led the quarters-to-sell (QTS) for the city to inch
2022. As many homebuyers have completed their grown from 10% in H2 2021 to 14% in H2 2022.
down from 7.3 in H2 2021 to 6.1 in H2 2022. QTS
primary home purchases already since the initial Homebuying preferences for spacious homes in
is the number of quarters required to exhaust the
announcement of the stamp duty rebate in July the wake of the pandemic has continued unabated
existing unsold inventory in the market. The existing
2021, sales volumes may moderate in the near in Kolkata.
unsold inventory is divided by the average sales
term.
• The share of South Zone of Kolkata in total sales velocity of the preceding eight quarters to arrive at
• As demand has sustained in the past year and a moderated from 36% in H2 2021 to 33% in H2 the QTS number for the current quarter.
half, real estate developers have increased the 2022. Despite this dip, the South Zone contributed
supply of new residential projects through new to one-third of the total sales volume in this period,
launches in the past one year. In 2022, 12,330 units making it the best performing zone for the period
were launched, which is the highest witnessed in under review. North Kolkata’s share also decreased
the past five years. On a YoY basis, it represents from 27% in H2 2021 to 20% in H2 2022, making
a 64% upsurge as developers are banking on the it the second best performing micro-market in the
stamp duty rebate and limited ready to move in city. Rajarhat’s share, on the other hand, improved
inventory to spur demand for under construction from 18% to 25% in the same period.
units.
Central Park Street, Rawdon Street, AJC Bose Road, Minto Park, Elgin Road
East Kankurgachi, Beliaghata, Salt Lake, Narkeldanga, Keshtopur, EM Bypass (eastern parts)
North Baguiati, Ultadanga, Jessore Road, Shyambazar, Lake Town, BT Road, VIP Road
Rajarhat Rajarhat New Town
West Howrah, Rishra, Hooghly, Uttarpara, Chandan Nagar, Rajpur, Kona Expressway
South Ballygunge, Alipore, Tollygunge, Narendrapur, Behala, Garia, Maheshtala, EM Bypass (southern parts)

MICRO-MARKET SPLIT OF NEW LAUNCHES KOLKATA TICKET SIZE SPLIT

H2 2021 H2 2022
H2 2021 AND H2 2022
<5 mn 5-10 mn >10 mn
33%
North
100%
10%
10% 13%
90%
31%
80%
South
25% 25%
38%

70%
60%
18%
Rajarhat
50%
47%
40%
9% 65% 62%
30%
East
5% 20%
10%
9%
West
0%
H2 2021 H2 2022

H2 2021 H2 2022 AVERAGE RESIDENTIAL PRICE MOVEMENT
IN H2 2021 AND H2 2022 (INR/SQ M)
36% 40,000
South
33%
38,481
38,427
38,449
38,051
39,000
27%
North
37,620
20%
38,000
25%
Rajarhat
18% 36,544
36,156
37,000
10%
West
35,447
13%
35,082
36,000
7%
34,585
East
34,595
34,606
7%
35,000
2%
34,731
Central
2%
34,000
33,433
33,000
32,000
New Launches
in H2 2022
31,000
6% 30,000
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
YoY increase


Park Street 130,244-215,278 (12,100-20,000) 0% 0%

Central
Rawdon Street 107,639-209,896 (10,000-19,500) 0% 0%
Kankurgachi 55,972-91,493 (5,200-8,500) 0% 0%

East
Salt Lake 51,667-82,883 (4,800-7,700) 1% 1%
Madhyamgram 27,448-36,598 (2,550-3,400) 3% 0%
North
BT Road 32,292-43,056 (3,000-4,000) 0% 0%
Jessore Road 37,674-57,049 (3,500-5,300) 0% 0%
Rajarhat
Rajarhat New Town 37,674-76,424 (3,500-7,100) 2% 0%
Ballygunge 87,188-206,669 (8,100-19,200) 1% 1%
Tollygunge 55,972-156,078 (5,200-14,500) 3% 3%

South
Behala 34,445-49,514 (3,200-4,600) 0% 0%
Narendrapur 27,986 -48,976 (2,600-4,550) 1% 0%

MICRO-MARKET HEALTH
Central 166 (60%) 3.3
East 1,060 (-27%) 4.4
North 4,993 (-3%) 6.1
Rajarhat 7,800 (24%) 11.7
South 5,830 (-4%) 4.9
West 838 (-63%) 1.9

Office Market
KOLKATA MARKET SUMMARY
2022 H2 2022
Completions
in mn sq m (mn sq ft) 0.02 (0.2) -70% 0.0 NA
Transactions
in mn sq m (mn sq ft) 0.11 (1.1) 42% 0.05 (0.6) 1%

in INR/sq m/month (INR/sq ft/month) 374.5 (34.8) 0%
32.5
2022 2022 Vacancy 2022
(3.02) 1% 41.9% 112 bps decline
KOLKATA OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions

0.56
0.28
0.21
0.11
0.07
0.08
0.06
0.06
0.05
0.05
0.05
0.05
0.05
0.04
0.04
0.04
0.04
0.03
0.03
0.02
0.05
0.02
0.02
0.02
0.02
0.01
0.01
-
-
-
-
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• In 2022, the office space demand in Kolkata has in Kolkata has grown despite the deferment of • In H2 2022, Kolkata noted no new office space
strengthened steadily. The ‘return to work’ transition expansion plans by some players. Along with a completions. No new office supply came on the
during the year led to the city clocking a transaction hybrid work mode strategy, the IT sector occupiers block as the city has been struggling with high
volume of 0.11 mn sq m (1.1 mn sq ft), representing continued to lease new office spaces to establish vacancy levels of above 40% for more than four
a 42% YoY growth over 2021. For Kolkata, this their office space footprint. years now. This has led developers to recalibrate
has been the highest office space leasing total in their plans for office space construction as the lack
• The manufacturing sector’s share in H2 2022 was
the past three years. During 2020 and 2021, the of a demand driver for office spaces in Kolkata has
noted at 13% as no large spaces were leased
transaction volumes had reduced substantially due kept leasing limited, which acts as an impediment
though smaller office spaces were leased by
to the pandemic led mobility restrictions. In 2022, to creation of new office stock. The existing
occupiers from this sector. In comparison to H2
the office market in Kolkata could be seen coming office space formats and flexible spaces are in
2021, however, this sector’s share grew from 5%
out of the woods. abundance to cater to occupiers hunting for office
in H2 2021 to 13% in the current period. This is an
spaces in the city, besides, no speculative office
• During the half yearly period of H2 2022, the city encouraging sign for Kolkata’s office market as the
space developments are foreseen in the near
witnessed total office space transaction volume of city is host to some big manufacturers.
future.
0.05 mn sq m (0.6 mn sq ft) with a 1% YoY uptick,
• Co-working, accounting for 17% of the city’s
which is largely at par with H2 2021. In the past • Kolkata’s office space vacancy continues to be the
office transactions volume in H2 2021, witnessed
three half yearly periods of H2 2021, H1 2022 and second highest amongst the vacancies recorded in
a share decline to 8% in H2 2022. This can be
H2 2022, the half yearly transaction totals have India’s top eight markets. Kolkata recorded 41.9%
due to the temporary delay in decision making by
remained stable at nearly similar levels on the back office space vacancy at the end of 2022 second
co-working operators due to cautionary expansion
of sustained demand for office spaces in the city. only to Ahmedabad’s 42.8% vacancy level. Despite
by IT companies and rationalization of office space
a 112 basis point decline in the past one year and
• The peripheral business district of Salt Lake City demand by start-ups, as recessionary headwinds
a 42% YoY uptrend in office space leasing, 2022
(PBD-1) dominated the occupier interest during from global economies make noise on the global
ended on a high vacancy note for Kolkata’s office
H2 2022 as an overwhelming 85% of the space stage. The BFSI sector’s share also moderated from
market. If new office completions are tightened in
transacted during the period was in this business 9% in H2 2021 to 6% in H2 2022.
2023, the increase in office space vacancy may
district. SBD-2 Rashbehari Connector continues to
• Though the pandemic waned in H2 2022, some remain restricted.
be a key micro-market with 6% of the office space
emerging sectors which had gained prominence in
transacted being located here. CBD & Off CBD and • The average office space rents have stagnated in
the past two years due to the pandemic influence,
PBD-2 Rajarhat New Town accounted for 5% and 2022, and no change was noted compared to the
approached new office space take-up in H2
4% of the office space demand, respectively. year ago period. Owing to high vacancy, rents may
2022 cautiously. With sectors like education,
not see an upward revision in 2023. With the bulk
• In terms of the office space demand by different e-commerce, healthcare and logistics clubbed
of office space demand concentrated in one micro-
sectors, the Information Technology (IT) sector under the Other Services sector, their combined
market, any upward revision in rents seems unlikely
witnessed an expansion in share from 21% in H2 share in office leasing tapered from 47% in H2 2021
in Kolkata as the overall leasing volume remains low.
2021 to 27% in H2 2022. The IT sector’s share to 45% in H2 2022.
KOLKATA OFFICE MARKET VACANCY

43.0%
43.0%
42.5%
41.8%
41.9%
41.7%
41.0%
34.5%
33.0%
32.7%
32.0%
31.4%
31.3%
31.3%
30.5%
24.9%
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

Park Street, Camac Street, Theatre Road, AJC Bose Road, Elgin Road, Rabindra Sadan, Esplanade, Lenin
Sarani, S N Banerjee Road, Central Avenue, Dalhousie Square, Mangoe Lane, Brabourne Road, Chandni
Chowk, Rawdon Street, Loudon Street, Lee Road, Lord Sinha Road, Hastings, Hare Street, Kiran Shankar
Central Business District (CBD) and Off CBD Ray Road, Upper Wood Street, Hungerford Street, Circus Avenue, Syed Amir Ali Avenue, Chowringhee
Suburban Business District (SBD-1)Park Circus Connector Topsia, JBS Haldane Avenue, EM Bypass-Park Circus Connector
EM Bypass-Rashbehari Connector, Anandapur Main Road, Rajdanga, South Ballygunge, Ashutosh

Suburban Business District (SBD-2) Rashbehari Connector Mukherjee Road, Gariahat, Hazra, Chetla, Jessore Road, Nagerbazar
Peripheral Business District (PBD-1)Salt Lake City Salt Lake Sector V
Peripheral Business District (PBD-2) Rajarhat New Town Rajarhat New Town, BT Road, Bantala
H2 2021 AND H2 2022
H2 2021
H2 2021 H2 2022
100%
40%
80%
60%
50%
90%
20%
30%
70%
10%
H2 2022
70%
PBD-1
(Salt lake City) 9% 6%
85%
BFSI
16%
PBD -2
(Rajarhat New Town) 4%
11%
SBD -2
(Rashbehari Connector) 6%
22% 28%
INFORMATION
3% TECHNOLOGY
CBD & Off CBD
5%
5% 13%
MANUFACTURING
47% 45%
OTHER
SERVICES
Salt Lake City garners
85%
of transaction volume in
CO-WORKING
17% 8%
H2 2022


2,083
1,818
1,726
1,763
1,630
1,373
1,338
725
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

CBD & Off CBD 700-1,023 (65-95) 0% 0%
SBD-I (Park Circus Connector) 538-753 (50-70) 0% 0%
SBD-II (Rashbehari Connector) 538-915 (50-85) 0% 0%
PBD-I (Salt Lake City) 312-517 (29-48) 0% 0%
PBD-II (Rajarhat New Town) 258-452 (24-42) 0% 0%

58 I N D I A R E A L E S TAT E - M U M B A I
Mumbai
Strong consumer demand continues to drive residential sales in Mumbai despite strong
headwinds leading 10 year high sales record in 2022. The Mumbai office market has
embarked on a path of recovery recording a 69% YoY growth in transactions in 2022
Residential Market
MUMBAI MARKET SUMMARY
2022 H2 2022
Launches
90,434 29% 42,968 26%
(housing units)
Sales
85,169 35% 40,969 19%
(housing units)
Average price in
79,298 (7,367) 7% - -
1,59,832 Quarters to sell

(in quarters) 2022
Age of unsold
inventory (in
4% quarters) 2022
Change (YoY)
9.0 15.4
47,466
44,200
43,822
42,968
40,969
38,389
35,988
35,974
35,872
34,382
34,151
34,971
34,135
32,077
33,731
32,412
30,179
31,481
30,042
28,607
27,212
28,446
25,403
26,904
24,450
23,399
20,776
18,887
18,646
15,763
9,740
7,490
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• On the back of sustained demand, the Mumbai explained by the increase in property prices. The total supply. South Mumbai is the only other market
residential market has logged record high sales in share of sales in above INR 10 mn ticket size has to have a larger share of 2 and 2.5 BHK supply
2022 despite strong headwinds. Attaining a 35% fallen from 26% to 20% in H2 2022. amounting to 45%. Apart from the Central Suburbs
YoY growth in 2022, the Mumbai market recorded that have equal distribution of supply for 1 BHK, 1.5
• The weighted average residential property prices
sales of 85,169 units, the best in 10 years since BHK, 2 and 2.5 BHK products, all other markets
have recorded an upward movement since H1
2013. The market’s resilience is evident from its have a larger supply of 1 and 1.5 BHK product types.
2021. This uptick in price was observed for the
half yearly absorption of 40,969 units in H2 2022, The supply of high-rise properties added in Q4
first time since H1 2017. In H2 2022, the residential
a growth of 19% YoY despite consecutive repo rate 2022 is greater in the Western Suburbs, Thane, and
prices recorded a 7% YoY rise. The increased raw
hikes impacting the purchasing capacity of home South Mumbai.
material prices coupled with strong demand were
buyers. Notwithstanding several hurdles like the
the primary drivers for developers to opt for price • Despite several headwinds, strong consumer
implementation of metro cess, effectively raising
rise. Nonetheless, developers remain mindful to not demand continues to drive the market. However,
the stamp duty by 1% and rise in housing prices,
deter the strong consumer sentiment. any further rise in mortgage rates and property
the market shows strength. Strong consumer
prices will have an impact on consumer sentiment.
sentiments supported by a rise in income levels, • The unsold inventory has risen by 4% YoY in
and need for house ownership are key drivers for 2022 on account of the massive supply added in
residential sales in the Mumbai market. the market. However, as a result of strong sales
volumes, the quarters to sell has reduced from 12
• To make the most of the momentum, developers
quarters in 2021 to 9 quarters in 2022. The age of
have quickly sprung into action by launching
the unsold inventory has dropped from 16.1 quarters
90,434 units in 2022 recording a 29% YoY growth.
to 15.4 quarters in 2022 indicating that old as well
This is the highest annual supply added in the
as new supply is being absorbed in the market.
market since 2014. Nonetheless, developers
remain cognizant of the consumer sentiment and • Approximately half the supply added in the Mumbai
affordability. 75% of the supply added in 2022 are market in Q4 2022 was of 1 BHK and 1.5 BHK
in suburban markets like the Western Suburbs, product type amounting to 45%, followed by 2 BHK
Thane, Peripheral Central Suburbs and Central and 2.5 BHK amounting to 38% of the total supply
Suburbs. added. Products of up to 500 sq ft size followed
by 500-1000 sq ft contributed the most to supply
• A high proportion of the properties transacted in
accounting for 55% and 33% respectively in Q4
H2 2022 remain in the less than INR 5 mn ticket
2022.
size although their share has shrunk from 51% in
H2 2021 to 48% in H2 2022. While the INR 5-10 • The Western Suburbs are one of the most diverse
mn ticket size market has expanded, recording a markets catering to all income groups. In Q4 2022,
32% share take-up in H2 2022 from 23% in H2 the new supply added is of product type ranging
2021, this shift to the INR 5-10 mn category can be from 1 BHK to 4.5 BHK, though 2 BHK and 3 BHK
hold the maximum share amounting to 77% of the
Central Mumbai Dadar, Lower Parel, Mahalaxmi, Worli, Prabhadevi
Central Suburbs Sion, Chembur, Wadala, Kurla, Ghatkopar, Vikhroli, Bhandup, Mulund
Navi Mumbai Vashi, Nerul, Belapur, Kharghar, Airoli, Panvel, Ulwe, Sanpada
Peripheral Central Suburbs Kalyan, Kalwa, Dombivli, Ambernath, Bhiwandi, Mumbra, Karjat
Peripheral Western Suburbs Vasai, Virar, Boisar, Palghar, Bhayandar, Nalasopara
South Mumbai Malabar Hill, Napean Sea Road, Walkeshwar, Altamount Road, Colaba
Thane Naupada, Ghodbunder Road, Pokhran Road, Majiwada, Khopat, Panchpakhadi
Western Suburbs Bandra, Andheri, Goregaon, Kandivali, Borivali, Santacruz, Vile Parle

MICRO-MARKET SPLIT OF NEW LAUNCHES MUMBAI TICKET SIZE SPLIT

H2 2021 H2 2022
H2 2021 AND H2 2022
<5 mn 5-10 mn >10 mn
7%
Thane
100%
23%
26%
90% 20%
22%
80%
Western Suburbs
18%

70%
32%
60% 23%
30%
Peripheral
50%
Central Suburbs 16%
40%
13%
30%
Central Suburbs
51%
14% 20% 48%
10%
12%
Navi Mumbai
0%
12%
H2 2021 H2 2022
9%
Peripheral
Western Suburbs 10%
(INR/SQ M)
1%
South Mumbai
6%
8,093
9000
8,120
8,044
7,994
7,994
7,717
5%
Central Mumbai
7,333
7,367
1%
7,192
8000
7,163
7,115
7,014
6,885
6,886
6,787
6,750
H2 2021 H2 2022
IN H2 2021 AND H2 2022
7000
12%
Thane
12%
6000
15%
Western Suburbs
14%
5000
22%
Peripheral
Central Suburbs 27%
4000
15%
Central Suburbs
15%
3000
15%
Navi Mumbai
12%
2000
18%
Peripheral
Western Suburbs 17%
1000
1%
South Mumbai
1%
0
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
2%
Central Mumbai
1%

Lower Parel 2,69,100-3,87,504(25,000-36,000) 2% 2%

Central Mumbai
Worli 5,92,020-8,07,300(55,000-75,000) 12% 11%
Ghatkopar 1,29,168-2,36,808(12,000-22,000) 0% 1%
Central Suburbs
Mulund 1,29,168-2,36,808(12,000-22,000) 4% 3%
Powai 1,82,988-3,22,920(17,000- 30,000) 7% 2%
Panvel 40,903-80,730(3,800- 7,500) 7% 4%
Navi Mumbai
Kharghar 75,348-99,029(7,000-9,200) 6% 3%
Vashi 1,29,168-2,58,336(12,000-24,000) 1% -5%
Badlapur 30,139-48,438(2,800-4,500) 7% 4%
Peripheral Central Suburbs
Dombivali 53,820-91,494(5,000-8,500) 13% 5%
Mira Road 64,584-99,029(6,000-9200) 12% 5%

Peripheral Western Suburbs
Virar 53,820-77,501(5,000-7,200) 12% 6%
South Mumbai
Tardeo 4,30,560-6,45,840(40,000-60,000) 2% -1%
Ghodbunder Road 64,584-1,29,168(6,000-12,000) 12% 8%

Thane
Naupada 1,50,696-2,58,336(14,000-24000) 12% 2%
Andheri 1,61,460-2,79,864(15,000-26,000) 6% 2%
Bandra(W) 5,82,00-7,53,480(50,000-70,000) -2% -5%
Western Suburbs
Borivali 1,50,696-2,69,100(14,000-25000) 7% 1%
Dahisar 96,876-1,72,224(9,000- 16000) 7% 2%
Goregaon 1,39,932-2,58,336(13000- 24000) 7% 4%

MICRO-MARKET HEALTH
Central Mumbai 7,401 (1%) 24.4
Central Suburbs 33,789 (8%) 12.8
Navi Mumbai 26,193 (-5%) 11.1
Peripheral Central Suburbs 12,584 (-26%) 2.8
Peripheral Western Suburbs 9,505 (-42%) 2.9
South Mumbai 5,381 (130%) 41.3
Thane 31,052 (28%) 12.7
Western Suburbs 33,926 (23%) 12.1

Office Market
MUMBAI MARKET SUMMARY
2022 H2 2022
Completions
in mn sq m (mn sq ft) 0.19 (2.0) -59% 0.09 (1.0) -73%
Transactions
in mn sq m (mn sq ft) 0.59 (6.4) 69% 0.32 (3.4) 59%

in INR/sq m/month (INR/sq ft/month) 1,184 (110.0) 3%
14.7
2022 2022 Vacancy 2022
(158.3) 1% 19.6% 130 bps decline
MUMBAI OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions

0.71
0.47
0.47
0.46
0.46
0.43
0.41
0.41
0.36
0.35
0.34
0.34
0.32
0.32
0.30
0.29
0.32
0.28
0.26
0.27
0.23
0.21
0.20
0.20
0.20
0.18
0.15
0.15
0.12
0.09
0.09
0.09
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• Supported by a stable economic environment, the landlords can be attributed to the lack of available when compared to H2 2021. The Other Services
Mumbai office market recorded substantial growth quality supply in the market with limited office sector, with key deals from consulting, healthcare
in transactions in 2022. Annual absorption volumes spaces being added post Covid- 19. Relocation and and logistics, recorded a drop from 36% in H2 2021
grew strongly with 0.59 mn sq m (6.4 mn sq ft) new acquisition deals have recorded a rise in their to 21% in H2 2022, while the manufacturing sector
transacted recording a 69% YoY growth in 2022. share take-up in H2 2022. The share of relocation deals contracted from 22% in H2 2021 to 13% in H2
The Mumbai office market has embarked upon a deals grew from 44% in H2 2021 to 49% in H2 2022.
path of recovery with the BFSI sector continuing 2022, while the share of new acquisitions grew to
• The share take-up of co- working spaces has
to drive demand. The half yearly transactions are 13% in H2 2022. The share of expansion deals,
doubled, growing from 5% in H1 2022 to 10% in H2
supportive of the growth with H2 2022 recording however, has contracted, dropping from 42% in
2022. The Mumbai office market is also gearing up
a 59% YoY jump in transactions. The traction was H2 2021 to 38% in H2 2022. Many companies
towards embracing hybrid working models with an
primarily led by deals concluded in Secondary continue to review their existing space utilizations
increase in co-working deals amounting to 0.04 mn
Business District (SBD) West and Peripheral and expansion plans and tenants are moving
sq m (0.4 mn sq ft). Information Technology also
Business District (PBD) micro markets amounting towards hybrid working models to optimize space
recorded an upward movement with a share take-
to 27% and 26% of the transactions respectively in utilization.
up of 9% in H2 2022.
H2 2022.
• The bulk of transactions closed in H2 2022 are
• Rents grew marginally by 3% YoY in H2 2022 with
• Developers, however, remain cautious while recorded in Goregaon location at 0.04 mn sq m
the average rental of the Mumbai office market
adding new supply post pandemic. Annual supply (0.45 mn sq ft), followed by Kurla and BKC with
remaining stable in the last three quarters. However,
added in 2022 stands at 0.19 mn sq m (2.0 mn 0.04 mn sq m (0.4 mn sq ft) each. Transactions
as transactions outpace supply, the vacancy dipped
sq ft) recording a 59% YoY drop. The new supply concluded in Navi Mumbai in H2 2022 are spread
by 130 bps from 20.9% in H2 2021 to 19.6% in H2
added in 2022 is at a 10-year low, and this can be across locations with Ghansoli, Turbhe and Airoli
2022.
attributed to the delay in construction activities on being the prominent markets accounting for 0.07
account of Covid restrictions and rising raw material mn sq m (0.71 mn sq ft). • The impact of a rise in interest rates globally
costs post supply chain disruptions due to global and regionally, will directly impact cost of capital
• The BFSI sector continues to dominate the new
tensions. With transaction volumes recording a causing companies to revisit their business plans.
transactions, amounting to almost half the deals
steady increase, developers are expected to add However, backed by a growth in demand, the office
transacted in H2 2022. The share of BFSI sector
new supply going forward. SBD West, Central market of Mumbai is expected to continue the
grew from 33% in H2 2021 to 46% in H2 2022. The
Mumbai and PBD micro markets account for 86% path of recovery with a temporary deceleration in
Other Services sector and manufacturing sector
of the supply added in 2022. momentum.
contracted in H2 2022 while the BFSI, Information
• Tenants’ tendencies to continue with their existing Technology and co-working spaces expanded
MUMBAI OFFICE MARKET VACANCY

21.9%
21.9%
21.6%
21.6%
21.5%
20.9%
20.2%
20.2%
19.6%
19.7%
19.7%
19.8%
19.6%
17.9%
17.9%
17.5%
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

Central Business District (CBD and Off CBD) Nariman Point, Cuffe Parade, Ballard Estate, Fort, Mahalaxmi, Worli
Bandra Kurla Complex & Off- Bandra Kurla Complex

(BKC & Off-BKC) BKC, Bandra (E), Kalina and Kalanagar
Central Mumbai Parel, Lower Parel, Dadar, Prabhadevi
Secondary Business District (SBD) West Andheri, Jogeshwari, Goregoan, Malad
Secondary Business District (SBD) Central Kurla, Ghatkopar, Vikhroli, Kanjurmarg, Powai, Bhandup, Chembur
Peripheral Business District (PBD) Thane, Airoli, Vashi, Ghansoli, Rabale, Belapur
H2 2021 AND H2 2022
H2 2021
H2 2021 H2 2022
100%
40%
80%
60%
50%
90%
20%
30%
70%
10%
H2 2022
0%
CBD & Off-CBD
33% 46%
4%
BFSI
3%
Central Mumbai
10%
10%
BKC & Off-BKC
13%
4% 9%
INFORMATION
25% TECHNOLOGY
SBD West
27%
28%
SBD Central
20%
22% 13%
34% MANUFACTURING
PBD
26%
36% 21%
OTHER
SERVICES
5% 10%
CO-WORKING

3,892
3,627
3,404
3,094
2,920
2,700
Transaction in H2 2022
59%
2,331
1,851
YoY increase
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

BKC & Off-BKC 1776 - 3229 (165-300) 3% 0%
CBD & Off-CBD 1453-2422 (135-225) 3% 0%
Central Mumbai 1615-2153 (150-200) 2% 0%
PBD 484-861 (45-80) 3% 0%
SBD Central 807-1615 (75-150) 2% 0%
SBD West 807-1345 (75-125) 2% 0%

68 I N D I A R E A L E S TAT E - N C R
NCR
In 2022, the National Capital Region (NCR)’s primary residential market was on a
substantial upward trajectory as strong homebuying demand accentuated by the
pandemic continued throughout the calendar year.
Residential Market
NCR MARKET SUMMARY
2022 H2 2022
Launches
63,233 207% 34,507 96%
(housing units)
Sales
58,460 67% 29,359 24%
(housing units)
Average price in
48,330 (4,490) 7% 48,330 (4,490) -

(in quarters) 2022
Age of unsold
inventory (in
5% quarters) 2022
Change (YoY)
8.6 25.8
34,000
34,507
29,359
29,101
29,458
28,726
25,000
23,800
23,599
23,092
22,596
20,465
18,047
17,462
17,188
17,642
22,976
15,788
19,852
16,913
11,474
15,059
9,273
9,123
8,402
7,846
6,926
6,696
5,446
4,800
2,943
1,422
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• In 2022, the National Capital Region (NCR)’s continues to influence homebuyers’ preference as an upward trajectory with each half-yearly period.
primary residential market was on a substantial a way of life long after the pandemic has waned in From 27% in H1 2020, it has grown to 41% in H2
upward trajectory as strong homebuying demand India. In NCR’s overall sales volume, the share of 2022. The construction quality and credibility of
accentuated by the pandemic continued INR 5- 10 mn segment has reduced marginally from established developers from Gurugram resonates
throughout the calendar year. Despite the 33% in H1 2022 to 30% in H2 2022. well with homebuyers looking at a lifestyle upgrade
cumulative repo rate hike of 225 basis points in by possessing larger homes. Availability of new
• In 2022, the average residential prices across
2022 alone, the sales total reached a 9-year high launches in multiple formats such as independent
NCR headed upwards, leading to a 7% YoY growth.
at 58,460 units, a 67% sales growth over 2021. floors, gated plotted developments and high-rise
Healthy absorption in residential units coupled with
Buoyed by a sustained demand scenario and apartment projects have ensured healthy sales
rise in input costs led to a sharp increase in prices
limited availability of ready to move in inventory, velocity.
in many micro-markets in Gurugram, Noida and
developers have been scaling up new launches
Delhi. If this significant sales velocity is sustained in • Multiple infrastructure upgrades post COVID-19
since the beginning of 2022. In 2022, 62,233 units
NCR’s residential realty, the upward price revision have helped revive homebuyer sentiment towards
were launched, taking the launch total to a 7-year
may continue as the median home loan rates have Gurugram’s developing peripherals making
high. Due to the limited launch of new residential
still not breached the pre pandemic levels of 2019. them accessible to the main areas of Gurugram
projects in 2021 because of the pandemic, this
and Delhi via connectivity with NH-48. Rapid
translates into a 207% YoY growth over 2021. • Despite buoyancy in home sales in 2022, the
development of social infrastructure in Sector 65
unsold inventory in NCR witnessed a 5% YoY
• As compared to H1 2022, the second half of the and Sector 66 on Golf Course Extension Road,
growth to 100,959 units. This is largely due to the
year emerged stronger in terms of housing sales. In completion of the Sohna Elevated Corridor, and
infusion of new supply which not only breached
H2 2022, NCR’s residential market witnessed the the impending opening of the Gurugram stretch
pre-pandemic levels but noted a 7-year high.
sales of 29,359 units, toppling the H1 2022 sales of Dwarka Expressway in early 2023 has been
Limited availability of ready to move in inventory
total to emerge as the strongest half yearly period instrumental in giving a fillip to the fortunes of the
contributed to many new projects being launched
since H2 2013. This is primarily due to the fact that primary residential market in 2022.
in the market giving a fillip to the available units.
the home loan rates have remained supportive of
• Similar to the trend witnessed with sales, new
housing demand despite the multiple repo rate • Despite a 5% annual growth in the unsold inventory,
launches in Gurugram have been increasing since
revisions. The repo rate revision, too, moderated the quarters-to-sell (QTS) inched down from 13.7 in
H2 2021, albeit at a slower pace. From a 51% share
as the year drew to a close which underpinned H2 2021 to 8.6 at the end of H2 2022. This is largely
in NCR’s total launches in H2 2021, Gurugram’s
the decision making by prospective homebuyers. due to the high sales velocity witnessed in H2 2022
share has swelled to 61% in the current review
New home sales in H2 2022 recorded a 24% YoY on the back of sustained homebuyer demand. QTS
period. In the past year, sustenance of robust
growth. is the number of quarters required to exhaust the
demand for high-end, luxury segment products
existing unsold inventory in the market. The existing
• Of the total units sold in H2 2022, Gurugram have led to new residential projects being launched
unsold inventory is divided by the average sales
accounted for 41% share whereas Noida, Greater periodically. In H2 2022, new residential launches
velocity of the preceding eight quarters to arrive
Noida and Ghaziabad cumulatively accounted for a took place in DLF Phase I, Sector 37D along the
at the QTS number for the current quarter. This
54% share of the total pie. Dwarka Expressway and Sector 84, 93 and 113 in
significant reduction in NCR’s QTS in the past one
New Gurugram. Golf Course Road and Golf Course
• In line with housing sales, consistent launch of year is indicative of a healthy demand cycle and is
Extension Road also witnessed a few residential
new residential projects was noticed in H2 2022 the lowest since H1 2014. QTS was recorded at 9 in
units being launched in this period.
as developers launched new projects to meet H1 2014, before it reduced to 8.6 in H2 2022.
the contemporary needs of the homebuyer.
• In 2022, NCR’s leading publicly listed and
A combination of amenities-rich projects,
private developers closed several land parcel Noida and Greater Noida
independent floors and gated plotted development
acquisitions in Gurugram and Noida to strengthen
projects in NCR’s vital residential markets led to the • Compared to H2 2021, Noida’s share in NCR’s total
their development portfolios. As the homebuyer
launch of 34,507 units in H2 2022, nearly doubling sales volume decreased from 19% to 14% in H2
demand has not only remained higher than the
the numbers of H2 2021. Gurugram comprised the 2022. This is largely due to the non-availability of
pre-pandemic peak of 2019 but grown manifold,
lion’s share or 61% of the total launch pie due to ready to move in inventory in key micro-markets
developers are looking at opportunities for group
strong inherent demand for residential products in of Noida situated closer to Delhi. Lack of under
housing developments in emerging peripheral
its micro-markets. construction projects from credible developers
belts to deepen their market presence in the
known for their execution capability has created
• Since H2 2021, the share of products with ticket megalopolis.
a shortage of preferred residential projects for
sizes > INR 10 mn in the total sales volume has
homebuyers. Despite high homebuyer demand,
consistently increased in NCR. From 37% in H2
sales lagged as buyers were left with fewer
2021, the share of this category expanded to 41% Gurugram
residential products to consider.
in H1 2022 before growing to 50% in H2 2022.
• Gurugram continues to remain the focal point
There has been a sizeable jump in the demand for • During H2 2022, Noida’s share in NCR’s new
of NCR’s primary residential sales and its group
premium residential products which has largely launches remained limited at 4%, although in H1
housing and luxury high-rises have become
remained unaltered by the interest rate hike. In 2022, Noida had accounted for a 13% share in
homebuyer favorites. Since H1 2020, Gurugram’s
fact, it now constitutes nearly half of the total sales NCR’s new launches.
share in NCR’s total sales volume has been on
in NCR. The need for ownership of larger homes
• Unlike Noida, Greater Noida’s share in NCR’s total • The lack of new inventory in Greater Noida has led of expected infrastructure developments like the
sales inched down marginally when compared to to a positive outcome as many developers who upcoming Noida International Airport, multi-modal
H2 2021. From 29% in H2 2021, it moderated to were previously not present in this region due to its logistics park and expansion of the metro link
27% in H2 2022. Demand sustenance for ready to past legacy issues have started taking exposure between Noida and Greater Noida. The extension
move in inventory helped Greater Noida maintain here. In H2 2022, a few regional and national of Metro’s Aqua Line between Noida-Greater Noida
its share in NCR’s total sales but sales velocity developers announced new residential projects (West) will boost connectivity between Noida Sector
has been impacted due to limited availability of here hoping to capitalise on this unmet demand 51 and Knowledge Park V in Greater Noida (West)
new inventory and lack of completed projects. from homebuyers. From an 18% share in NCR’s and bolster real estate development in Sectors 122,
Greater Noida West remained a suitable location for total launches in H2 2021, Greater Noida’s share 123, 4, 2, Sector 12 Ecotech, Greater Noida Sectors
homebuyers and witnessed good sales traction. has increased to 22% in H2 2022 on the back 10, 12 and Greater Noida Knowledge Park.
MICRO-MARKET SPLIT OF NEW LAUNCHES NCR TICKET SIZE SPLIT COMPARISON OF

H2 2021 H2 2022
IN H2 2021 AND H2 2022 SALES DURING H2 2021 AND H2 2022
<5 mn 5-10 mn >10 mn

51%
Gurugram
100%
61%
37% 50%
90%
18%
80%
Greater Noida
22%

70%
60%
18%
Noida
50%
4% 36%
40%
30%
7%
30%
Ghaziabad
6% 20%
10% 27% 20%

6%
Faridabad
0%
4%
H2 2021 H2 2022
Delhi
3%
Source: Knight Frank Research AVERAGE RESIDENTIAL PRICE MOVEMENT

(INR/SQ M)
MICRO-MARKET SPLIT OF SALES 55,000

IN H2 2021 AND H2 2022
H2 2021 H2 2022
33%
Gurugram
49,281
41%
48,330
48,553
47,760
50,000
47,695
29%
47,362
45,822
46,777
Greater Noida
45,228
44,617
27%
44,832
45,908
45,639
45,747
45,747
44,832
19%
Noida
14%
45,000
16%
Ghaziabad
13%
2%
Faridabad
3%
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
40,000
1%
Delhi
2%
35,000

Dwarka 69,966–107,640 (6,500–10,000) 10% 3%

Delhi
Greater Kailash -II 247,572–389,657(23,000–36,200) 2% 1%
Sector 82 34,445–38,750 (3,200–3,600) 5% 0%

Faridabad
Sector 88 33,368–36,597 (3,100–3,400) 0% 0%
NH-24 Bypass 31,217–33,960 (2,900–3,155) 4% 3%

Ghaziabad
Raj Nagar Extension 31,754–35,812 (2,950–3,327) 1% 0%
Sector 1 34,606–43,056 (3,215–4,000) 7% 6%

Greater Noida
Omicron 1 32,238–37,674 (2,995–3,500) 7% 7%
Sector 77 56,511–69,966 (5,250–6,500) 6% 1%

Gurugram
Sector 81 58,126–68,890 (5,400–6,400) 7% 2%
Sector 78 49,514–63,058 (4,600–5,900) 5% 1%

Noida
Sector 143 45,209–52,747 (4,200–5,000) 4% 1%

MICRO-MARKET HEALTH
Delhi 3,230 (155%) 13.2
Faridabad 3,355 (14%) 13.4
Ghaziabad 15,213 (-14%) 9.0
Greater Noida 33,945 (-9%) 10.8
Gurugram 35,259 (59%) 8.2
Noida 9,957 (-33%) 4.9

Office Market
NCR MARKET SUMMARY
2022 H2 2022
Completions
in mn sq m (mn sq ft) 0.7 (7.9) 53% 0.5 (5.4) 152%
Transactions
in mn sq m (mn sq ft) 0.8 (8.9) 39% 0.4 (4.8) 20%

in INR/sq m/month (INR/sq ft/month) 900.9 (83.7) 2%
16.9
2022 2022 Vacancy 2022
(181.9) 5% 14.5% 103 bps points decrease
NCR OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions

0.59
0.56
0.55
0.51
0.50
0.45
0.40
0.40
0.37
0.37
0.40
0.35
0.34
0.35
0.34
0.33
0.33
0.32
0.30
0.30
0.30
0.26
0.24
0.21
0.20
0.20
0.20
0.19
0.19
0.17
0.17
0.08
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• The National Capital Region (NCR) office market new office completions heightened in 2022 along Gurugram
witnessed a 10 year high in office spaces leased with the recovery in office space demand.
during 2022. The office transaction volume
• In H2 2022, new office completions witnessed a
surpassed all previous records of pre-covid years, • During H2 2022, Gurugram accounted for 0.2
healthy upswing of 152% over H2 2021. Of the total
reporting a strong upsurge in market volume at mn sq m (2.7 mn sq ft) of office space leasing
new completions, Gurugram comprised 76% of
0.8 mn sq m (8.9 mn sq ft), a 39% YoY growth over which is 55% of NCR’s total transaction volume.
the total share, followed by Noida at 23%. This was
2021. Office spaces transacted in NCR made it one Whilst Gurugram’s share in NCR’s overall leasing
followed by the Secondary Business District (SBD)
of the best performing office markets in terms of decreased from 64% in H2 2021 to 55% in H2
of Delhi which accounted for 1% of the share.
office leasing across the top eight cities in 2022 2022, it has grown in terms of actual square
as the ‘return to office’ transition continued. There • With the sizeable infusion of new office space footage leased.
has been a significant increase in office space completions, NCR’s office vacancy corrected by
• In H2 2022, office leasing in Gurugram recorded a
occupancies in 2022 as occupiers expanded 103 basis points to reduce to 14.5% at the end of
4% YoY growth over H2 2021. This is an indicative
footprint across business districts of NCR. 2022. This is primarily due to a strong rebound
sign of stability in occupier demand despite the
in office space leasing and preference for NCR’s
• In H2 2022, nearly 0.4 mn sq m (4.8 mn sq ft) office global economic vulnerabilities and domestic
well developed business districts as a hotspot for
space was leased in NCR, marking a 20% YoY economic scenario.
corporate occupiers.
growth. Of all the office spaces leased during this
• For large multinationals and corporate occupiers,
half yearly period, Gurugram accounted for 55% • The average transacted rents in NCR increased
Grade A office assets in Gurugram Zone A
share of the total pie, followed by Noida at 41%. by 2% YoY in H2 2022. With transaction volumes
remained favorites as they garnered 62% of
This is in line with the historical trends since the for office leasing reaching a new high, rents have
Gurugram’s total leasing in H2 2022. M G Road,
development of office stock in these cities, which recorded an upward growth mainly due to premium
parts of NH-48, Golf Course Road and Golf Course
are the cornerstones of the NCR office market. office spaces in prominent micro-markets of
Extension Road witnessed a lot of traction during
Gurugram and Noida commanding higher rent than
• In H2 2022, office space demand for traditional this half yearly period. Occupiers across sectors
others.
and flexible working space formats remained such as IT/ITeS, co-working, BFSI and e-commerce
strong. The co-working sector’s share in NCR’s • The average area transacted has moderated from largely leased Grade A spaces in Gurugram’s Zone
total leasing expanded from 12% in H2 2021 to 3,190 sq m (34,337 sq ft) in H2 2021 to 3,017 sq A.
17% in H2 2022. As the pandemic waned, many m (32,475) in H2 2022. Whilst the office space
• Gurugram’s Zone B comprising DLF Cybercity,
co-working operators continued to expand their demand has grown in 2022, the correction in deal
Udyog Vihar, Sohna Road and Gwal Pahari micro-
footprint as occupier preference for flexible office size is indicative of occupiers being judicious about
markets together accounted for the remaining
formats continues to rise. their office space take-up as workspace strategies
38% of Gurugram’s leasing. This is largely due to
evolve in a post pandemic year.
• The Information Technology (IT) sector’s share also limited space availability in these belts despite high
inched up from 19% in H2 2021 to 22% in H2 2022
as a few large deal closures were reported during
this period. The share of the Banking, Financial
Services and Insurance (BFSI) sector increased
marginally from 7% in H2 2021 to 8% of the total
leasing in H2 2022. The manufacturing sector’s
share, however, decreased from 21% in H2 2021 to
10% in H2 2022.
• The Other Services sector cluster which comprises

diverse sectors such as consulting, e-commerce,
education, engineering, healthcare, legal, media,
real estate and miscellaneous other companies,
together accounted for 43% share in the H2 2022
transaction volume. Consulting and e-commerce
companies in particular, made up one-fourth of the
total volume under this category.
• In 2022, new office space completions of 0.7 mn sq

m (7.9 mn sq ft) became operational in NCR. This is
the highest supply of new office spaces to become
available in the past three years. Compared to 2021,
this is indicative of a 53% YoY growth as many
office buildings received occupancy certificates
during this calendar year. Due to the lull in office
completions in 2020 and the pandemic in 2021,
occupier demand. Most of the office spaces eyed 76% of NCR’s total supply. On a YoY basis, this is available, Noida’s prime commercial districts have
by occupiers are either pre-committed or occupied, indicative of a healthy 159% growth over H2 2021. noted enhanced occupier traction recently. Sectors
leaving fewer choices for interested corporates Many office space buildings in Gurugram Zone A 62, 125, 126, 127, 132 and parts of Noida-Greater
to consider. Also, with the availability of spaces in came on the block during H2 2022. Most of these Noida Expressway evinced a lot of occupier
Gurugram Zone A, the office market is expanding spaces were located in Sectors 44, 58, 59, 62 and interest.
beyond these erstwhile favorites. 65.
• During H2 2022, new office completions in Noida
witnessed a YoY growth of 121% over H2 2021.
New office spaces of 0.1 mn sq m (1.2 mn sq ft)
• The stability in office space demand has led to a NOIDA
became available in this period. The high supply
minor uptick in average rents for office spaces in
infusion in this half yearly period is also a key factor
Gurugram. The average rents in Gurugram Zone A
behind increased space take-up in Noida. The lack
and Gurugram Zone B have inched up by 3% and • Noida accounted for 41% share of NCR’s total
of quality office supply had been a key factor for
2% YoY respectively. With stable demand for office office space leasing In H2 2022. At 0.2 mn sq m
limited office space consumption in the year ago
spaces prevailing throughout the year, rents for (2.0 mn sq ft), Noida’s share in NCR’s leasing has
period.
key Grade A properties have witnessed a modest expanded from 27% in H2 2021 to the current level
upward revision. in a span of just one year. This represents a healthy • The high occupier demand resulted in a 6% YoY
81% YoY jump witnessed during this period. With increase in average rents for office spaces in Noida
• In H2 2022, new office space completions of 0.4
new supply of quality office spaces becoming in H2 2022.
mn sq m (4.1 mn sq ft) in Gurugram constituted
Rising occupier inclination towards co-working spaces on account of the flexibility has
resulted in a jump in its share of transactions from 18% in H2 2021 to 46% in H2 2022.
NCR OFFICE MARKET VACANCY

17.7%
17.7%
17.7%
17.7%
17.7%
17.2%
16.8%
16.8%
16.5%
16.3%
16.1%
16.3%
16.5%
15.5%
14.5%
14.4%
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

CBD Delhi Connaught Place, Barakhamba Road, Kasturba Gandhi Marg and Minto Road
SBD Delhi Nehru Place, Saket, Jasola, Bhikaji Cama Place, Mohan Cooperative, Okhla and Aerocity
Gurugram Zone A M G Road, NH-8, Golf Course Road and Golf Course Extension Road
Gurugram Zone B DLF CyberCity, Sohna Road, Udyog Vihar and Gwal Pahari
Gurugram Zone C Manesar
Noida Sectors 16, 18, 62, 63 and the Noida-Greater Noida Expressway
Greater Noida Sector Alpha, Beta, Gamma and Tech Zone
H2 2021 AND H2 2022
H2 2022
H2 2021 H2 2022
100%
40%
80%
60%
50%
90%
20%
30%
70%
10%
H2 2022
64%
Gurugram
7% 8%
55%
BFSI
27%
Noida
41%
7%
SBD Delhi
3%
19% 22%
INFORMATION
1% TECHNOLOGY
CBD Delhi
1%
1%
Faridabad
21% 10%
MANUFACTURING
41% 43%
OTHER
SERVICES
Gurugram share in
NCR transactions in
H2 2022
55% CO-WORKING
12% 17%


4,340
4,166
3,872
3,190
3,017
2,927
2,343
2,301
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

CBD Delhi 2,347–3,767 (218–350) 0% 0%
SBD Delhi 915–2,153 (85–200) 0% 0%
Gurugram Zone A 1,184–1,744 (110–162) 3% 1%
Gurugram Zone B 915–1,453 (85–135) 2% 0%
Gurugram Zone C 269–377 (25–35) 0% 0%
Noida 538–915 (50–85) 6% 4%
Faridabad 484–592 (45–55) 0% 0%

78 I N D I A R E A L E S TAT E - P U N E
Pune
2022 recorded highest residential sales volumes in the last 10 years. Annual office
transactions in Pune rose by 61% YoY .
Residential Market
PUNE MARKET SUMMARY
2022 H2 2022
Launches
38,640 -5% 21,247 6%
(housing units)
Sales
43,410 17% 21,613 9%
(housing units)
Average price in
46,204 (4,293) 7% - -

(in quarters) 2022
Age of unsold
inventory (in
-9% quarters) 2022
Change (YoY)
4.6 11.7
23,264
21,396
21,797
21,613
21,557
21,247
20,740
20,477
20,012
19,744
18,135
18,584
17,480
17,364
17,393
17,070
17,474
16,870
16,800
16,486
15,445
16,451
15,524
15,688
14,100
13,435
12,762
11,300
10,049
8,713
7,905
4,800
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• The Pune residential market has recorded contribution of new launches in Central, Western • Residential prices have recorded growth of 7% YoY
substantial growth over the last 2 years. The annual and Northern Zones amounting to 20%, 26% and 2% QoQ in H2 2022. Initially, developers opted
sales volumes rose by 17% YoY in 2022 registering and 10% of the total launches while the share for price hikes on account of rising raw material
sales of 43,410 units, the highest volume recorded contribution for South and East recorded a prices. However, subsequently, they have been
in the last 10 years since 2013. The market’s contraction in share to 20% and 24% respectively. able to increase prices as they are supported by a
resilience despite several hurdles is evident from With the return-to-office trend catching up, strong demand. Quarter to sell has dipped from 6.3
the half yearly sales of 21,613 units recording a 9% residential spaces near key employment hubs quarters in 2021 to 4.6 quarters in 2022 indicative
YoY growth in H2 2022. Although a large section like Hinjewadi and Baner in the West Zone are of the strong market demand. New as well as old
of homebuyers comprises the migrant workforce, expected to see a rise in sales momentum. projects are being absorbed in the market as is
primarily salaried employees opting for housing evident from the age of unsold inventory reducing
• Sales volumes in H2 2022 was concentrated
mortgage, their outlook towards the market from 12.7 in 2021 to 11.7 quarters in 2022.
majorly in South, East and West markets having
continues to remain optimistic despite consecutive
a share contribution of 32%, 28% and 23%
mortgage rate hikes affecting the consumer’s
respectively.
purchasing capacity.
• Residential sales of ticket size INR 5-10 mn
• Annual launches recorded a marginal drop of
recorded a jump in share from 40% in H1 2021 to
5% YoY accounting for a supply of 38,640 units
45% in H2 2022 while residential sales of <INR
in 2022. Pune is the only market to witness
5 mn ticket size recorded a decline in share from
deceleration in growth of new launches in this
52% in H2 2021 to 46% in H2 2022. This change
period, and this can be attributed to strong supply
in share contribution can be attributed to an overall
volumes recorded in 2021. In H2 2022 however,
rise in the price of products. >INR 10mn properties
the Pune market recorded a 6% YoY rise in new
also recorded an increase in share take up from
launches amounting to a supply of 21,247 units.
8% in H1 2022 to 9% H2 2022.
• H2 2022 has recorded a jump in the share
Pune residential market has seen a robust performance in H2 2022, overcoming

several hurdles including metro cess, RR rate hike and rising input costs the consumer
sentiment shows great resilience.
Central Koregaon Park, Boat Club Road, Erandwane, Deccan, Kothrud, Model Colony
East Viman Nagar, Kharadi, Wagholi, Hadapsar, Dhanori
West Aundh, Baner, Wakad, Hinjewadi, Bavdhan, Pashan
North Pimpri, Chinchwad, Moshi, Chikhali, Chakan, Talegaon
South Kondhwa, Ambegaon, Undri, Dhayari, Warje, Sinhgad Road

MICRO-MARKET SPLIT OF NEW LAUNCHES PUNE TICKET SIZE SPLIT COMPARISON

H2 2021 H2 2022
IN H2 2021 AND H2 2022 OF SALES DURING
H2 2021 AND H2 2022
<5 mn 5-10 mn >10 mn
21%
West
100%
26%
8% 9%
90%
25%
80%
East
40% 45%
24%

70%
60%
7%
Central
50%
20%
40%
38% 52% 46%
30%
South
20% 20%
10%
9%
North
0%
10%
H2 2021 H2 2022


MICRO-MARKET SPLIT OF SALES (INR/SQ M)
H2 2021 H2 2022
IN H2 2021 AND H2 2022
60000
22%
52,318
52,318
52,318
51,871
52,045
West
23%
48,524
48,007
24%
47,068
East
46,327
46,204
45,656
45,661
50000
28%
43,830
43,056
43,236
43,164
3%
Central
3%
38%
South 40000
32%
13%
North
15%
Source: Knight Frank Research 30000
20000
Sales in 2022
17% 10000
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
YoY increase


Koregaon Park 1,39,932-1,82,988 (13,000 - 17,000) 1% 1%
Kothrud 80,730-1,50,696 (7,500 - 14,000) 13% 5%

Central
Erandwane 1,45,314-1,93,752 (13,500 - 18,000) 8% -3%
Boat Club Road 1,56,078-2,69,100 (14,500 - 25,000) 9% -2%
Kharadi 57,049-86,112 (5,300 - 8,000) 7% 4%
Wagholi 37,674-59,202 (3,500 - 5,500) 10% 3%

East
Dhanori 51,667-73,195(4,800- 6,800) 9% 2%
Hadapsar 60,278-86,112 (5,600 - 8,000) -4% -1%
Aundh 83,959-1,39,932(7,800 - 13,000) 0% -1%
Baner 71,042-1,18,404(6,600 - 11,000) 10% 3%

West
Hinjewadi 51,667-86,112 (4,800 - 8,000) 10% 2%
Wakad 58,126-92,570 (5,400 - 8,600) 5% 2%
Moshi 39,827-64,584 (3,700 - 6,000) 6% 1%
North
Chikhali 37,674-55,973 (3,500 - 5,200) 7% 1%
Chakan 32,292-40,903 (3,000 - 3,800) 2% 0%
Ambegaon 47,367-73,196 (4,400 - 6,800) 12% 4%
South
Undri 41,980-53,820 (3,900 - 5,000) 5% 1%
Kondhwa 49,514-61,355 (4,600 - 5,700) 10% 4%
MICRO-MARKET HEALTH
Central 5,382 (134%) 22.4
East 12,228 (-17%) 4.7
West 19,373 (14%) 7.4
North 8,020 (-16%) 5.3
South 1,014 (-86%) 0.3
Pune City 46,042 (-9%) 4.6

Office Market
PUNE MARKET SUMMARY
2022 H2 2022
Completions
in mn sq m (mn sq ft) 0.62 (6.7) -8% 0.15 (1.7) -61%
Transactions
in mn sq m (mn sq ft) 0.57 (6.2) 61% 0.26 (2.8) 6%

in INR/sq m/month (INR/sq ft/month) 775 (72) 7%
8.14
2022 2022 Vacancy 2022
(87.6) 8% 10.3% 183 bps decline
PUNE OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions
0.46
0.40
0.39
0.35
0.35
0.31
0.31
0.27
0.25
0.25
0.25
0.25
0.26
0.24
0.22
0.20
0.19
0.19
0.17
0.16
0.16
0.16
0.14
0.14
0.15
0.11
0.12
0.11
0.11
0.05
0.03
0.02
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

• Leading office demand in the Pune market, the driven by manufacturing deals, and Panchshil • Several occupiers are re-evaluating expansion
managed office spaces have grown to be the Business Park Viman Nagar (SBD West) driven plans in the backdrop of global turmoil and rising
preferred choice amongst office occupiers on by Information Technology sector deals, each interest rates, which is evident with deals from
account of the flexibility, cost and spatial benefits. recording 7% of the total transacted deals. the BFSI sector recording a substantial decline in
Annual office transactions in Pune rose by 61% H2 2022. The share take-up of BFSI sector has
• Steered by the co-working deals, the share of SBD
YoY to 0.57 mn sq m (6.2 mn sq ft), closing at the fallen from 35% in H2 2021 to 1% in H2 2022.
East and West, PBD East and West expanded in H2
pre pandemic levels of 2019. The latest half yearly This plunge can also be attributed to employers in
2022, while the share of CBD and off-CBD which is
period recorded transactions amounting to 0.26 this sector preferring hybrid working models with
a major market for Information Technology sector
mn sq m (2.8 mn sq ft) with micro markets like remote working or leasing spaces with co-working
deals, has contracted. Kharadi, Baner and Hinjewadi
Secondary Business District (SBD) East, Peripheral operators instead of direct space take up.
were hotspots for leasing activity in H2 2022.
Business District (PBD) east and Peripheral
• Information Technology and manufacturing sectors
Business District (PBD) west driving demand • SBD East recorded an increase in its share of
have recorded an uptick in their space take up in H2
amounting to 73% of the transactions in H2 2022. transaction from 18% in H2 2021 to 26% in H2
2022. The IT sector recorded a jump in share take
2022, while SBD West recorded a jump from 7%
• Annual office completions have fallen 8% YoY. With up from 16% in H2 2021 to 21% in H2 2022, while
in H2 2021 to 19% in H2 2022. PBD West led by
0.62 mn sq m (6.7 mn sq ft) supply added in 2022, manufacturing grew from 8% in H2 2021 to 13% in
manufacturing deals also saw a minor jump in its
the overall supply remains strong and ahead of H2 2022. Other Services sector led by consulting,
share of transactions amounting to a rise of 1%.
transactions. telecom, media and education have recorded no
• The co-working market has grown substantially YoY change in their share take up of 11%.
• Top performing office spaces in H2 2022 that
as a result of rising occupier inclination towards
recorded substantial transactions were in ITPP, • Rents grew 7% YoY to INR 775/sq m/month (INR 72/
co-working spaces on account of the flexibility,
Kharadi with transactions primarily driven by sq ft/month) in H2 2022. With demand outpacing
recording a jump in its share of transactions from
co-working deals accounting for 11% of the total supply in H2 2022, vacancy has dropped to 10.5%,
18% in H2 2021 to 46% in H2 2022.
transactions, followed by Nalanda in Hinjewadi recording the first drop in vacancy since H1 2020.
Rising occupier inclination towards co-working spaces on account of the

flexibility has resulted in a jump in its share of transactions from 18% in H2 2021
to 46% in H2 2022.
PUNE OFFICE MARKET VACANCY

14.9%
11.9%
10.5%
10.5%
10.8%
9.3%
8.7%
7.9%
8.2%
7.5%
5.9%
5.8%
5.7%
5.2%
4.7%
4.2%
H1 2015
H2 2015
H1 2016
H2 2016
H1 2017
H2 2017
H1 2018
H2 2018
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

Central Business District (CBD and Off-CBD) Bund Garden Road, S B Road, Camp, Deccan, University Road, Shankar Sheth Road
Secondary Business District (SBD) East Kalyani Nagar, Yerwada, Nagar Road, Hadapsar
Peripheral Business District (PBD) East Kharadi, Phursungi
Secondary Business District (SBD) West Wakdewadi, Aundh, Baner, Kothrud, Balewadi
Peripheral Business District (PBD) West Hinjewadi, Bavdhan, Wakad
Secondary Business District (SBD) North Pimpri , Chinchwad, Khadki, Moshi and Bhosari
H2 2021 AND H2 2022
H2 2021
H2 2021 H2 2022
100%
40%
80%
60%
50%
90%
20%
30%
70%
10%
H2 2022
5%
SBD North
35% 1%
0%
BFSI
7%
SBD West
19%
18%
SBD East
26%
16% 21%
INFORMATION
21% TECHNOLOGY
PBD West
22%
25%
CBD & Off-CBD
6%
19% 21%
25% MANUFACTURING
PBD East
25%
11% 11%
OTHER
SERVICES
Transactions in 2022
61% YoY increase

CO-WORKING
18% 46%

6,831
5,452
5,054
5,043
4,918

in 2022
4,484
7%
4,286
4,293
YoY increase
H1 2019
H2 2019
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022

CBD & Off-CBD 807- 1399 (75-130) 4% 0%
SBD East 646- 1238 (60-115) 8% 1%
SBD West 646- 1023 (60-95) 4% 0%
PBD East 646- 1066 (60-99) 9% 1%
PBD West 484- 807 (45-75) 8% 1%

KEY CONTACTS
Shishir Baijal
Chairman and Managing Director
shishir.baijal@in.knightfrank.com
------------------------------------------
ADVISORY, INFRASTRUCTURE, AND VALUATION
Gulam Zia
Senior Executive Director
gulam.zia@in.knightfrank.com
Rajeev Vijay
Executive Director - Advisory
rajeev.vijay@in.knightfrank.com
Saurabh Mehrotra
Executive Director - Advisory
saurabh.mehrotra@in.knightfrank.com
-----------------------------------------
CAPITAL MARKETS
Viral Desai
viral.desai@in.knightfrank.com
-----------------------------------------
FACILITIES & ASSET MANAGEMENT SERVICES

Sathish Rajendren
sathish.rajendren@in.knightfrank.com AHMEDABAD
----------------------------------------- Balbirsingh Khalsa
Branch Director
LAND AGENCY balbirsingh.khalsa@in.knightfrank.com
Reshmi Panicker -----------------------------------------
Executive Director
reshmi.panicker@in.knightfrank.com BENGALURU
----------------------------------------- Shantanu Mazumder
Executive Director
INDUSTRIAL & LOGISTICS SERVICES shantanu.mazumder@in.knightfrank.com
Balbirsingh Khalsa -----------------------------------------
Executive Director
REPORT AUTHORS CHENNAI
balbirsingh.khalsa@in.knightfrank.com
Srinivas Ankipatti
Yashwin Bangera
Pinkesh Teckwani Senior Director
Senior Vice President - Research
National Director srinivas.ankipatti@in.knightfrank.com
yashwin.bangera@in.knightfrank.com -----------------------------------------
pinkesh.teckwanii@in.knightfrank.com
Divya Agarwal -----------------------------------------
HYDERABAD
Vice President - Research Samson Arthur
OCCUPIER STRATEGY AND SOLUTIONS
divya.agarwal@in.knightfrank.com Senior Branch Director
Viral Desai
Senior Executive Director samson.arthur@in.knightfrank.com
V Shilpashree -----------------------------------------
viral.desai@in.knightfrank.com
Lead Consultant - Research -----------------------------------------
shilpa.shree@in.knightfrank.com KOLKATA
PROJECT MANAGEMENT Abhijit Das
Naresh Sharma Deben Moza Senior Director - East
Lead Consultant - Research Senior Executive Director abhijit.das@in.knightfrank.com
deben.moza@in.knightfrank.com -----------------------------------------
naresh.sharma@in.knightfrank.com
-----------------------------------------
Gaurashi Sawant
Consultant - Research RESIDENTIAL AGENCY NCR
Reshmi Panicker Mudassir Zaidi
gaurashi.sawant@in.knightfrank.com
Executive Director Executive Director - North
reshmi.panicker@in.knightfrank.com mudassir.zaidi@in.knightfrank.com
GRAPHICS & DESIGN ----------------------------------------- -----------------------------------------
Mahendra Dhanawade
RESEARCH PUNE
Senior Manager - Graphics & Design P. Vilas
Vivek Rathi
mahendra.dhanawade@in.knightfrank.com Director Branch Head
vivek.rathi@in.knightfrank.com p.vilas@in.knightfrank.com
----------------------------------------- -----------------------------------------
Your partners in property .
We like questions, if you’ve got one about our research, or would

like some property advice, we would love to hear from you.
RENTAL REAL ESTATE IN INDIA
2021: A NEW ERA FOR
INDIA REAL ESTATE
SENTIMENT INDEX
JAN-JUNE 2022
CO-WORKING
REAL ESTATE
RESEARCH
VIVEK RATHI
Director - Research
vivek.rathi@in.knightfrank.com
#WORK FROM HYDERABAD
CORPORATE - MARKETING & PUBLIC RELATIONS

MARKET REPORT 2022
INDIA WAREHOUSING
WORK FROM HOME
PIYALI DASGUPTA
INVESTMENTS IN
Director - Corporate -
REAL ESTATE
Marketing & Public Relations

piyali.dasgupta@in.knightfrank.com
Knight Frank Research Reports

are available to download at The statements, information, data and opinions expressed or provided herein are provided on “as is, where is” basis. Knight Frank (India) Private Limited (KFIPL) makes no warranties,
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RE SEA RCH

Block – EP & GP, Plot Number - GP 2,

During 2022 the trend of a ‘liberated workplace’ continued as many companies

I hope that you will find it insightful and interesting.

Unsold inventory (housing units) in 2022

453,477 Quarters to sell

LAUNCHES AND SALES TREND Launches (Units) Sales (Units)

Source: Knight Frank Research

• The demand momentum was strong in H2 2022

• Sales in the <INR 5 mn ticket size price segment

Knight Frank Affordability Index

City 2010 2019 2021 2022

Mumbai 93% 67% 52% 53%

NCR 53% 34% 28% 29%

Bengaluru 48% 32% 26% 27%

Pune 39% 29% 24% 25%

Chennai 51% 30% 24% 27%

Hyderabad 47% 34% 28% 30%

Kolkata 45% 32% 25% 25%

Ahmedabad 46% 25% 20% 22%

1. Calculated as EMI/INCOME ratio

35% 37% 28%

42% 35% 23%

Source: Knight Frank Research

INDIA MID AND PREMIUM MARKET ACTIVITY

RESIDENTIAL LAUNCHES AND SALES

Mumbai 42,968 (26%) 90,434 (29%) 40,969 (19%) 85,169 (35%)

NCR 34,507 (96%) 63,233 (207%) 29,359 (24%) 58,460 (67%)

Bengaluru 22,197 (29%) 43,420 (42%) 26,686 (15%) 53,363 (40%)

Pune 21,247 (6%) 38,640 (-5%) 21,613 (9%) 43,410 (17%)

Chennai 7,846 (7%) 15,416 (21%) 7,297 (18%) 14,248 (19%)

Hyderabad 22,491 (18%) 43,847 (23%) 16,353 (32%) 31,046 (28%)

Kolkata 5,644 (6%) 12,330 (64%) 5,819 (-37%) 12,909 (-10%)

Ahmedabad 10,424 (24%) 20,809 (42%) 5,865 (25%) 14,062 (58%)

RESIDENTIAL MARKET HEALTH IN H2 2022

City Unsold inventory (YoY change) QTS

Mumbai 159,832 (4%) 8.6

NCR 100,959 (5%) 8.6

Bengaluru 57,398 (-15%) 5.0

Pune 46,042 (-9%) 4.6

Chennai 14,184 (9%) 4.3

Hyderabad 31,400 (69%) 4.5

Kolkata 20,686 (-3%) 6.1

Ahmedabad 22,977 (42%) 6.8

All India 453,477 (4%) 7.2

Source: Knight Frank Research

RESIDENTIAL PRICE MOVEMENT

City H2 2022 in INR/sq m (INR/sq ft) 12 month change 6 month change

Mumbai 79,298 (7,367) 7% 3%

NCR 48,330 (4,490) 7% 1%

Bengaluru 59,315 (5,511) 7% 3%

Pune 46,204 (4,293) 7% 1%

Chennai 46,285 (4,300) 6% 1%

Hyderabad 53,651 (4,984) 6% 1%

Kolkata 36,070 (3,351) 4% 0%

Ahmedabad 31,216 (2,900) 4% 1%

Source: Knight Frank Research

ALL INDIA MARKET SUMMARY

Stock mn sq m (mn sq ft) in 2022

(879.5) 6% 17.1% 14 bps points decrease

ALL INDIA OFFICE MARKET ACTIVITY (MN SQ M) Completions Transactions

Source: Knight Frank Research

• The demand momentum was strong in H2 2022

• Sales in the <INR 5 mn ticket size price segment