CONNECT 25,000 · VESTIAN QUARTERLY NEWSLETTER Q3 2013 CONNECT S t r a t e g i c A d v i s o r y G...

CONNECT VESTIAN QUARTERLY NEWSLETTER Q3 2013

S t r a t e g i c A d v i s o r y G r o u p

INDIA ECONOMIC INDICATORS

Indian economy has grown at its

slowest this decade; Rupee slumped

to a historic low of 68.80 against the

US Dollar in Q3 2013

The Gross Domestic Product (GDP) of India grew

at 4.4% in Q2 2013; the lowest recorded quarterly

rate in the past one decade. The GDP growth has

been primarily driven by the finance, insurance,

business services and real estate at 8.9% and by

community & social services at 9.4% during Q3

2013. Agriculture, manufacturing and mining

sectors grew at 2.7%, -1.2% and -2.8%

respectively this quarter, decelerating the

economic growth. Construction sector took a

setback due to the change in government policies

and grew at 2.8% in Q3 2013 compared to 4.4%

in previous quarter. Index of Industrial Production

improved by 2.75% in July and by a further 0.6%

in August this year.

As the Indian Rupee continues to depreciate

against the US Dollar, it hit an all time low of

68.80 this quarter. Unfavorable macro-economic

conditions have adversely affected export-import

activity, investment activity and have created a

high current account and subsequent fiscal deficit.

Figure 1: GDP, Inflation & Index of Industrial

Production

The Inflation rate rose to 6.14% in Q2 2013 from

4.84% recorded last quarter. The rise in inflation is

mainly due to increase in the Index of food prices.

Table 1: Key Policy Rates

The Reserve Bank of India (RBI) increased the

repo rate and reverse repo rate by 25 basis points

in Q3 2013. However, the Cash Reserve Ratio

(CRR) and the Prime Lending Rates (PLR) remain

unchanged.

The BSE Realty also declined by 22% quarter-

over-quarter. Due to the depreciating value of

rupee against dollar, it fell to 1,126.8 points in

August 2013, lowest record for this year. However

it recovered in September, 2013 and reached

1,170 points.

Figure 2: Performance of BSE Sensex

Figure 3: Performance of BSE Realty Index

-4

-2

0

2

4

6

8

10

Jul-12

Aug

-12

Sep

-12

Oct-

12

No

v-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-

13

Ap

r-13

May-1

3

Jun-1

3

Jul-13

Aug

-13

Sep

-13

Perc

en

tag

e

Inf lation GDP IIP

Source: www.tradingeconomics.com, www.economictimes.com

0

5,000

10,000

15,000

20,000

25,000

Po

ints

Sensex

Source: www.bseindia.com

Q3 2013

0

500

1,000

1,500

2,000

2,500

Po

ints

Realty Index

Source: www.bseindia.com

Q3 2013

Key Rates Jul -13 Aug-13 Sep-13

PLR* 14.45% 14.45% 14.45%

Repo Rate 7.25% 7.25% 7.50%

Reverse Repo Rate 6.25% 6.25% 6.50%

CRR 4.0% 4.0% 4.0%

Source: www.rbi.org.in

*Source: www.sbi.co.in



Business Optimism and Employment

Outlook in Q3 2013

Figure 4: Net Employment Outlook11

Dun and Bradstreet’s (D&B) Composite Business

Optimism Index declined by 4.2% year-on-year (y-

o-y). However, this is a marginal improvement

when compared to the previous quarter. The

decline in business optimism can be accounted to

the prevailing macro-economic challenges.

Figure 5: Net Employment Outlook: Sector Wise

Comparison

1 According to manpower Employment Outlook Survey “Net

Employment Outlook” figure is derived by the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their locations in the next quarter.

According to Manpower survey report, Net

Employment Outlook for Q4 2013 stood at 40%

q-o-q and at 22% y-o-y. However, the hiring

prospects in all four regions improved both q-o-q

by 14% and y-o-y by 22%. The most optimistic

hiring plans are anticipated in the North region

with a Net Employment Outlook of 52% followed

by the South region at 44%. Net employment

Outlook in the West and the East region are

reported 36% and 33% respectively.

Overall hiring prospects improved in all seven

industry sector compared to the previous quarter

with highest Net Employment Outlook recorded

46% and 45% in the Wholesale & Retail Trade

sector and the Service sector respectively. The

most momentous growth in hiring prospect has

been recorded in Construction & Mining sector

and Finance, Insurance & Real Estate sector with

an increase of 25% and 22% respectively over

previous quarter.

FDI in Real Estate

According to the data available from the

Department of Industrial Policy and Promotion

(DIPP), in Q2 2013 the total FDI inflow stood at

USD 5,396 million and FDI inflow in Construction

Development Sector2 stood at USD 167 million.

The FDI inflow in Construction sector has declined

by 30% q-o-q. However, the sector is recuperating

as of Q3 2013 and has subsequently witnessed

FDI inflow of USD 245 million in the months of

July and August. The overall FDI inflow for Q3

2013 stands at USD 3,065 million.

2 Construction development includes the sub sectors

Housing, Township, Built-up Infrastructure and Construction Development projects.

0

10

20

30

40

50

60

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Pe

rce

nta

ge

Net Employment Outlook

Source: Manpower India, Q3 2013

30

43

40

40

42

38

38

30

46

43

37

45

42

42

0 20 40 60

Transportation & Utilities

Wholesale & Retail Trade

Mining & Construction

Public Administration & …

Services

Manufacturing

Finance, Insurance and Real Estate

Percentage (%)

Seasonally Adjusted Outlook Net Employment Outlook

Source: Manpower India, Q4 2013



PE deals in Real Estate declined by

50% on Y-o-Y basis in Q3 2013

7 major investments amounting to USD 199

million occurred through Private Equity deals in

Real Estate sector. However, the total PE

investment value dropped by 18% to USD 2.8

billion in Q3 2013 when compared to USD 3.4

billion of investments in Q3 2012.

Major PE deal announced this quarter includes:

Blackstone Real Estate Partners to invest

USD 415 million in Gurgaon based IT

SEZ project of Unitech Corporate Parks.

Qatar Investment Authority (QIA) likely to

invest USD 300 million in Bangalore

based Developer RMZ Corp.

Table 2: Key PE Investments in Real Estate Sector, Q3 2013

Table 3: Key PE Exits in Real Estate Sector, Q3 2013

PE Firm Developer Project / Stake Location Internal Rate of

Return (in %)

HDFC Nitesh Housing 10% Stake Bangalore 0.24

Deutsche Bank Golden Gate Properties 30% Stake Bangalore 0.3

Source: www.vccircle.com

PE Firm Developer Project Location Amount

(in USD million)

Standard Chartered Mahindra Lifespace Development Ltd

Residential Gurgaon & Bangalore

13.5

Red Fort Capital Lotus Green Developers Residential Gurgaon 58.8

Avenue Venture Rohan Builders Residential Bangalore 9

Reliance Capital PMS Omkar Realtors Commercial & Residential Bangalore 13.3

Source: www.vccircle.com



INDIA REAL ESTATE MARKET

OVERVIEW

In Q3 2013, real estate activity in

office, retail and residential sectors

across the four major cities was

comparable to the previous quarters

Office: Office market in the four cities

reported a total supply of 4.72 million sqft in Q3

2013, a drop of around 15% since the last

quarter. Bangalore was the leading contributor

with 3.16 million sqft of fresh supply of office

space and subsequently witnessed 50%

increase as compared to the last quarter.

Mumbai saw a steep decline with 0.32 million

sqft of fresh supply. Although Chennai office

market recorded a fresh supply of 0.6 million

sqft, this was a decrease by 30% compared to

the last quarter. But Hyderabad witnessed an

increase of 8% compared to Q2 2013 with a

fresh supply of 0.64 million sqft. Total

absorption in the four cities was 4.01 million sqft

in Q3 2013. Bangalore accounted for highest

absorption at 2.05 million sqft followed by

Mumbai at 1.01 million sqft. The overall office

leasing activity observed a drop of 20% as

compared to Q3 2012.With subdued fresh

supply and drop in absorption; the office rental

values also did not witnessed any significant

change in the four major cities.

Figure 6: Supply and Absorption of Office space

in Q3 2013 and expected supply in 20133

3 Office rentals mentioned are for Warm Shell spaces

Retail: Q3 2013 did not witness completion of

new mall space across the four major cities.

Leasing activity in malls remained subdued due

to limited availability of mall space. However,

high street locations continued to witness

healthy leasing activities in these cities. Rental

values for mall spaces remained unchanged

while select high street locations saw an

appreciation.

Residential: The three southern cities

Bangalore, Chennai and Hyderabad together

witnessed launch of around 19,500 residential

units in Q3 2013. Bangalore accounted for

highest number of new launches of 13,500

residential units, which was distributed across

all the micro-markets except the CBD region of

the city.

Chennai witnessed a moderate decline in

residential activity with 4,000 units launched in

Q3 2013, majority of which fall under mid-

segment category. Hyderabad saw a passive

residential activity with 2,000 new units being

launched this quarter. OMR and GST in

Chennai, Madhapur and Gachibowli in

Hyderabad continue to be the attractive

locations for residential activity.

Owing to festive season, the quarter was

expected to witness a healthy residential

activity, however cautious approach of home

buyers resulted in low absorption. Also, there

was a 20% drop in new launches of residential

units in the three southern cities compared to

the previous quarter

0

2

4

6

8

10

12

Bangalore Chennai Hyderabad Mumbai

in m

illio

n s

qft

Supply Q3 2013 Absorption Q3 2013 Supply 2013 (E)



BANGALORE

Office: Bangalore witnessed a fresh supply

of 3.16 million sqft of Grade A office space in

Q3 2013 of which 0.7 million sqft was SEZ

space. Nearly 65% of this supply was along

ORR, which includes the total SEZ space

supply. The Electronics City and the micro-

locations of CBD & Off- CBD witnessed 21%

and 14% of the total supply respectively. Key

Buildings commissioned during this quarter

included Prestige Khodays Tower in CBD,

Manyata Tech Park – Mountain Ash Block,

Prestige Tech Park Phase II & III and Mantri

Commercio in ORR.

Q3 2013 witnessed 2.05 million sqft of Grade A

office space absorption of which approximately

0.30 million sqft was SEZ space. ORR also

contributed to the highest absorption of 52%

Grade A office space this quarter followed by

SBD and Whitefield with 16% each of the total

absorption.

Select Grade A buildings across CBD locations

witnessed an appreciation in rental values.

However other locations did not witness any

significant change in the rentals.

Table 4: Bangalore Office Rental Values4, Q3 2013

Retail: Bangalore did not witness completion

of any malls in Q3 2013. Under-construction

malls include Vaishnavi Sapphire Mall (0.25

million sqft), Embassy Galaxy Mall (0.18 million

sqt) and Elements Mall (0.33 million sqft) all are

expected to be completed in Q4 2013. Key

brands that expanded this quarter include Titan,

Turtle, Pantaloon, I am in by Future Group,

Biba and Mc Donald’s.


Rental values witnessed a nominal increase by

2 – 5% across a few high street micro-locations,

while unaltered across for other locations.

Table 5: Bangalore Retail Rental Values

5,

Q3 2013

Residential: Bangalore saw an addition of

13,500 Grade A residential units in Q3 2013,

which is 10% lower than the number of units

launched in Q2 2013. The residential micro-

market did not witness any significant

appreciation of in capital values.

Table 6: Bangalore Residential Capital Values,

Q3 2013

5 Retail rental values mentioned are for Ground floor

store of 1,000 sqft on carpet with an efficiency of 80% for high streets and 65% for malls.

Micro-Location Capital Values (INR/sqft)

Central 7,000 - 25,000

Off-Central 5,000 - 1,100

Bannerghatta Road 2,100 - 6,300

Hosur Road 3,300 - 5,290

Sarjapur Road 4,000 - 9,000

Whitefield 4,000 - 8,000

Bangalore North 3,800 - 11,500

Tumkur Road 2,800 - 5,000

Mysore Road 4,200 - 6,600

Kanakapura Road 2,100 - 6,300

Old Madras Road 3,000 - 6,000

Brigade Road 480 - 500 Magrath Rd 300 - 350 Commercial Street 310 - 330 Cunningham Rd 175 - 185

Church Street 175 - 235 Vittal Mallya Rd 395 - 440

MG Road 225 - 250

Indiranagar 100 ft Rd 220 - 235

Jayanagar 11 th Main Rd 225 - 280

Sampige Rd 120 - 130

New BEL Rd 135 - 145

Kamanahalli Main Rd 140 - 170 ORR (Marathahalli - Sarjapur Junction)

90 - 110 Mysore Rd 105 - 120

Bannerghatta Rd 90 - 100

Yelahanka Main Rd 90 - 100

Rajararajeshwari Nagar

Koramangala

115 - 140

Bannergatta Rd 190 - 200

Whitefield 170 - 180

450 - 485

High Street Location

Rental Value

(INR/sqft /month)

Mall Spaces Location

Rental Value

(INR/sqft /month)

Grade A Grade B

CBD 90 - 110 80 - 85

SBD 70- 75 60 - 65

ORR 48 - 55 40 - 50

PBD 26 - 28 20 - 24

Bangalore North 45 - 55 35 - 40

Micro-location

Rental Value (INR/sqft/month)



Table 7: Bangalore - Key Office Lease Transactions, Q3 2013

Table 8: Bangalore - Key Residential Project Launches, Q3 2013

Project Developer Location Type No. of Units

Mantri Blossoms Mantri Developers Lalbagh Road Apartments 145

Sobha Concordia Sobha Developers Old Airport Road Apartments 230

Century Ethos Century Real Estate Hebbal Apartments 308

Ajmera Stone Park Ajmera Group Electronics City Apartments 280

Mantri Lithos Mantri Developers Hebbal Apartments 552

Century Breeze Century Real Estate Jakkur (Off NH7) Apartments 304

Mantri Courtyard Mantri Developers Off Kanakapura Road Row Houses 47

Sterling Ascentia Sterling Developers Bellandur Apartments 392

Aspire Salarpuria Sattva Hennur Main Road Apartments 119

Shriram Sameeksha Shriram Properties Jalahalli Apartments 1,008

Company Building Location Developer Area (in sqft)

Juniper Networks Prestige Tech Park Bellandur Prestige Group 7,16,384

Samsung India Pvt Ltd Bagmane Constellation BusinessPark Outer Ring Road Bagmane Group 3,50,000

JDA Software Group, Inc Mantri commercio Outer Ring Road Mantri Group 2,89,000 Microchip Technology Designs India Pvt Ltd First Face Technology Park Whitefield Renaissance Group 1,42,777

Synopsys RMZ Infinity Old Madras Road RMZ Corp 36,135

Safran Engineering Services Pritech IT Park Outer Ring Road Primal Projects Pvt Ltd 1,27,670

MetricStream AMR Tech Park Building Hosur Road Independent Building 60,000

Genpact Pritech IT Park Outer Ring Road Primal Projects Pvt Ltd 1,20,000 Maxim India Integrated Circuit Design PVT Ltd. Mantri Commercio Outer Ring Road Mantri Group 35,400

Fiberlink software Fortuna Towers Hosur Road Independent Building 36,000

Radisys India Pvt Ltd Prestige Exora Business Park Outer Ring Road Prestige Group 40,369



CHENNAI

Office: Chennai witnessed a fresh supply of

0.6 million sqft of Grade A office space in Q3

2013. Nearly 50% of this supply was located in

the Off-CBD locations. Chennai office market

witnessed an absorption of 0.54 million sqft.

DLF Info Park in Manappakkam saw major

leasing activity in the city during the quarter.

Rental values did not witness any change

across the micro-locations of the city.

Table 9: Chennai Office Rental Values6, Q3 2013

Retail: Chennai retail market did not witness

completion of any new mall space in Q3, 2013.

However with completion of the Forum Vijaya

Mall (1.6 million sqft) in Vadapalani and the Ten

Square Mall (0.15 million sqft) in Koyambedu,

healthy leasing activity was seen in malls. High

street micro-locations also witnessed healthy

leasing activity with expansion of key brands

like Reliance Digital, Woodland, Nilgiris,

Samsung and Khazana Jewellery.

Rental values across mall spaces and high

street locations did not witness any significant

change.


Table 10: Chennai Retail Rental Values7, Q3 2013

Residential: Chennai residential market saw

an addition of 4,000 residential units of which

around 90% of new launches were seen to fall

in the mid-segment category. OMR and GST

continued to be most active micro-markets for

residential activity in the city.

Capital values across all the residential micro-

market did not change this quarter.

Table 11: Chennai Residential Capital Values,

Q3 2013


store of 1,000 sqft on carpet with an efficiency of 80% for high streets and 65% for malls

Micro-location Capital Value (INR/sqft)

Central 10,000 - 26,000

Off-Central 4,500 - 12,000

OMR 5,000 - 6,000

GST 3,500 - 5,000

NH-4 2,500 - 4,500

Khadar Nawaz Khan Rd 200 Whites Rd 300

Nungambakkam High Rd 200 R K Salai 175

R K Salai 155 Mount Road 175

Usman Rd – South 125 Nelsanmanickam Rd 230

Usman Rd – North 130 Velachery 375

Pondy Bazaar 185 Vadapalani 230

Adyar Main Rd 175

Annanagar Second Avenue 135

Velachery 100

Purusuvakam High Rd 80

Rental Value

(INR/sqft/ month)

High Street

Rental Value

(INR/sqft/ month)

Mall Spaces

Grade A Grade B

75 60 55 40 40 30

OMR 30 18 GST 35 - 25 -

SBD

PBD

Micro-location Rental Value

(INR/sqft/month)

CBD Off CBD



Table 12: Chennai – Key Office Lease Transactions, Q3 2013

Table 13: Chennai – Key Residential Project Launches, Q3 2013


KG Earth Homes KG Developers & Promoters Siruseri Apartments 412

Color Gates Colorhomes Developer Perumbakkam Apartments 84

Royal Woods Marutham Group Urapakkam Apartments 96

Harini's Asihwaryam MCB Assetz Selaiyur Apartments 68

Company Name Building Location Developer Area (in sqft)

L& T Infotech DLF - 10 Manapakkam DLF 1,89,000

Equinity ICS DLF - 10 Manapakkam DLF 35,000

Access Health Care DLF - 3 Manapakkam DLF 37,000

Bank of Newyork DLF - 3 Manapakkam DLF 73,000

Hitachi DLF - 5 Manapakkam DLF 11,000

Sony Centennial Square Ashok Nagar Chaitanya 13,000

2 Adpro Sunnyside Nungambakkam Sabari 30,000

Finserve Cash Edge Sunnyside Nungambakkam Sabari 30,000

CADD Ind. Bldg Taramani Origin 20,000



HYDERABAD

Office: Hyderabad witnessed a fresh supply

of 0.64 million sqft of Grade A office space in

Q3 2013 compared to 0.45 million sqft in same

quarter last year. Highest supply was seen

along the PBD West micro-location of around

40% followed by the CBD location with 37% of

the total supply.

The city witnessed an absorption of 0.31 million

sqft of Grade A office space as compared to 0.5

million sqft office space absorption in Q3 2012.

Nearly 60% of the total absorption was in PBD

west wherein Hi-Tec City witnessed 47% of the

total absorption in the city.

This quarter recorded weak absorption since

occupiers resorted to cautious approach owing

to the weak macro-economic conditions and the

current political situation. The rental values

across all the micro-locations remain

unchanged.

Table 14: Hyderabad Office Rental Values8,

Q3 2013

Retail: Hyderabad did not witness any new

completion of malls in Q3 2013. However, malls

under-construction, include the Manjeera Trinity

Mall (0.8 million sqft) and the Sujana Forum

Mall (0.45 million sqft) in Kukatpally, are

witnessing pre-leasing activities. High street

locations continue to witness healthy leasing

activities in Q3 2013. Splash, Ruosh and

Malabar Gold were the few key brands that

expanded in Q3 2013 along high street

locations. Rental values remained unchanged

in both mall spaces and high street locations.

8 Office rental mentioned are for Warm Shell spaces

Table 15: Hyderabad Retail Rental Values

9,

Q3 2013

Residential: Hyderabad witnessed a drop in

the launch of residential projects this quarter

with influx of a mere 2,000 units. Western

locations such as Gachibowli, Madhapur,

Tellapur and Miyapur continue to be attractive

locations for the residential activity. The capital

values largely remained unchanged across all

the micro-markets.

Table 16: Hyderabad Residential Capital Values,

Q3 2013


store of 1,000 sqft on carpet area with an efficiency of 80% for high streets and 65% for malls

Micro-location Capital Value

(INR/sqft)

Banjara Hills 4,000 - 8,500

Jubilee Hills 4,000 - 8,000

Himayath Nagar 3,000 - 4,500

Maredpally 3,000 - 5,000

Begumpet, Somajiguda 3,000 - 5,000

Madhapur, Gachibowli 3,000 - 6,000

Kukatpally 3,000 - 4,000

M.G. Road 156 NTR Gardens 230 Begumpet 125 Banjara Hills 270

Banjara Hills Rd. 1 175 Madhapur 280 Banjara Hills Rd. 2 162

Panjagutta 131 Jubilee Hills Rd. 36 168

AS Rao Nagar 110 Madhapur 143 Kukatpally 135

Rental Value

(INR/sqft /month)

High Street

Rental Value

(INR/sqft /month)

Mall Spaces

Grade A Grade B CBD 45-55 40-45 SBD 55-60 40-50

PBD (West) 36-42 28-35 PBD 22-28 16-22

Micro-location Rental Value (INR/sqft/month)



Table 17: Hyderabad – Key Office Lease Transactions, Q3 2013

Table 18: Hyderabad – Key Residential Launches, Q3 2013


Mayfair Villas Pranit Projects Pvt. Ltd. Gachibolwi Apartments 208

Luxor Trishala Infra Pvt Ltd Kondapur Apartments 200

Vinay Harmony County SMR Builders Rajendra Nagar Apartments 406

Water Front City, Phase II Prajay Engineerings Shamirpet Villas 500

Company Building Location Developer Area (in sqft )

M-Modal Ashoka Raghupathy Chambers Begumpet Ashoka Builders 24,000

Kony Labs E-Park Kondapur Vijay textiles Pvt. Ltd 11,500

John Deere Krish Sapphire Madhapur Sri Krishna Developers 20,000

Kantra Perra Sanali Infopark Banjara Hills Sanali Constructions 13,500

Softronics Trendset Towers Banjara Hills Trendset Builders 24,000

Net Orange Ananth Techno Park, Block - 1 Hi-Tec City Ascendas 11,000

Tech Aspect Maximus 2B Hi-Tec City K. Raheja Corp 20,000

iconcept Capella Hi-Tec City Ascendas 24,000

Camp Systems Capella Hi-Tec City Ascendas 24,000



MUMBAI:

Office: Mumbai witnessed fresh supply of

0.32 million sqft of Grade A office space in Q3

2013 compared to 2.01 million sqft of fresh

supply in Q2 2013. The decrease in the fresh

supply was due to the delay in expected

projects to be operational but now will be

operational only by next quarter. The fresh

supply in Q3 2013 was infused with the

completion of Block 6 – Nirlon knowledge Park

(0.31 million sqft) in western Suburbs.

The city witnessed absorption of nearly 1.0

million sqft of Grade A office space in Q3 2013

compared to 1.75 million sqft of absorption in

Q2 2013. Nearly 50% of the total absorption

was seen in the micro-locations of the Western

Suburbs and 20% in Eastern Suburbs. Key

lease transactions this quarter include Clariant

(0.13 million sqft) in Reliable Tech Park, Thane

and Aegon Religare (0.06 million sqft) in Nesco

IT Park, Goregaon.

Rental values across all the micro-locations

remained unchanged except a marginal

increase in Western Suburbs.

Table 19: Mumbai Office Rentals10

, Q3 2013

10

Office rentals mentioned are for Warm Shell spaces

Retail: Mumbai saw the completion of no new

malls in Q3 2013. Viviana Mall (1.0 million sqft)

in Thane, which was operational towards the

flag end of previous quarter saw healthy retail

activity in Q3 2013 with expansion of around

200 retail brands of which 40 brands are yet to

come. L&T Mall (1.5 million sqft GLA), part of

an integrated commercial complex project in

Seawoods, has commenced their construction

work.

The key brands that expanded during this

quarter were Caterpiller, Tresmode, Forever 21,

FabIndia and Big Door.

Table 20: Mumbai Retail Rentals11

, Q3 2013

Rental values in mall spaces remained

unchanged. High street retail space in BKC and

Western Suburbs saw 10 – 15% appreciation in

the rental values due to available retail spaces

and growing residential catchment. The rental

values on high street location of South Mumbai

declined by 10 – 15%.

11

Retail rental values mentioned are for Ground floor

store of 1,000 sqft on carpet area with an efficiency of 80% for high streets and 65% for malls

South Mumbai 650 450 Linking Road - Juhu 700 -

BKC 450 -

Western Suburbs 400 300 Eastern Suburbs 250 170

Navi Mumbai 225 170

Micro-location

High Street Rental Value

(INR/sqft/ month)

Mall Rental Value

(INR/sqft/ month)

CBD 275 - 320

SBD 170 - 260

BKC 280 - 340

Western Suburbs 90 - 150

Eastern Suburbs 60 - 110

Navi Mumbai 50 - 120

Micro-location Rental Value

Grade A (INR/sqft/month)



OUTLOOK

Nearly 29 million sqft of grade A office

space is expected to enter market in the

major four cities (Bangalore, Chennai,

Hyderabad and Mumbai) by the end of year

2013. Of the total expected supply, the

market has already witnessed 18.4 million

sqft of fresh supply this year till Q3 2013,

remaining 10.6 million of supply is expected

to be induced during Q4 2013.

Bangalore office market with an estimated

fresh supply of 4.5 million sqft in Q4 2013,

is likely to witness highest supply of nearly

11 million sqft office space in 2013.

With improving hiring intentions, demand

for office space is likely to grow in Q4 2013.

Office Rentals are likely to remain stable

due to the new supply that is expected to

enter in Q4 2013.

With final approval obtained by IKEA to

enter India, investments of around USD 100

million and the launch of 25 stores across

the country has been planned by the

world’s largest furniture retailer. The

company is evaluating to set up their first

few stores in Hyderabad, Bangalore,

Chennai, Mumbai and Noida.

Q3 2013 did not witness completion of any

new mall project. However Bangalore is

likely to receive 0.77 million sqft GLA with

completion of Vaishnavi Sapphire Mall,

Elements Mall and Embassy Galaxy Mall in

Q4 2013.

Demand in residential sector will improve in

the short to medium term and the capital

values are likely to appreciate in cities like

Bangalore and Chennai due to healthy

economic activity.

Residential projects have huge scope for

innovation in the budget and the mid-

segment housing categories. This is

anticipated to drive the residential market in

future.



Office: Location Master

City Location

M.G. Road, Kasturba Road, Lavelle Road, V.M. Road, Ulsoor

Road, Residency Road, Infantry Road

Indiranagar, Koramangala, Inner Ring Road, Old Airport Road,

Bannerghatta Road

Stretch from Hebbal to Silk Board junction

Whitefield, Electronics City, Mysore Road, Bellary Road,

Sarjapur Road

Bellary Road ( Hebbal to BIAL)

Anna Salai, Cathedral Road, Dr. R. K. Salai, Nungambakkam, T Nagar,

Alwarpet & Egmore

Velacherry, Guindy, Mt. Poonamallee Road, OMR (Madhya

Kailash to Tharamani)

Ambattur, OMR (Tharamani to Perungudi Toll)

OMR OMR (Perungudi Toll, Thoraipakkam, Shollinganallur, Siruseri,

Padur)

GST Shriram, L&T Estancia, Mahindra World City

Begumpet, Somajiguda, Raj Bhavan Road and SP Road

Banjara Hills, Jubilee Hills

Madhapur, Gachibowli, Raidurgam, Manikonda, Hi-Tech City

Pocharam, Uppal, Shamshabad

Fort, Church Gate, Cuff Parade, Colaba

Worli, Lower Parel, Prabhadevi

Bandra Kurla Complex

Andhei, Goregaon, Malad

Vikhroli, Powai, Mulund, Thane

Vashi, Belapur

Off-CBD

Bangalore

Chennai

Hyderabad

Mumbai

BKC

Western Suburbs

Eastern Suburbs

Navi Mumbai

PBD

CBD

Micro-location

SBD

CBD

SBD

PBD (West)

CBD

SBD

ORR

PBD

Bangalore North

CBD

Off-CBD

PBD



Residential: Location Master

Bangalore Micro-location Location

Central MG Road, Kasturba Road, Brunton Road, Lavelle Road, Richmond

Road, Residency Road, Frazer Road, Cox Town and Hanes Road

Off-central Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleswaram, RMV

Extension, Sanjay Nagar, RT Nagar

ORR (Marathahalli - Silk

Board Jn) and Sarjapur

Road

HSR Layout, ORR (Marathalli - Silk Board Junction), Sarjapur Road,

Haralur Main Road, Kasavanahalli Main Road

Whitefield Whitefield, Brookefield, Mahadevpura, ORR (K.R.Puram to

Marathahalli), Varthur Road

Old Madras Road K.R. Puram, Ramamurthy Nagar, Battarahalli, Sonnenahalli,

Hirandahalli, Budigere, Devanahalli-Hoskote Road

Bangalore North

Banaswadi, HRBR Layout, Hennur Road, Thanisandra Main Road,

Bellary Road, Yelahanka, Kogilu, Chokkanahalli, Bagalur Road,

Doddaballapur Road, New Town Yelahanka, Jakkur

Hosur Road Hosur Main Road, Electronics City, Neeladri, Chandapura, Anekal

Bannerghatta Road Bannerghatta Road, Begur, BTM Extention

Mysore Road Mysore Road, Kengeri Satellite Town, Vijayanagar, Magadi Road, RR

Nagar

Kanakapura Road Kanakapura Main Road, Banashankari Extension and Uttarahalli

Tumkur Road Tumkur Road, Rajajinagar, Hesarghatta, Jalahalli, HMT Township,

Yeshwantpur

Central Boat Club Road, Poes Garden, Besant Nagar, Annanagar, T. Nagar,

R.A. Puram

Off-Central Vadapalani, Saligramam, KK Nagar, Porur, Ambattur, Pallavaram,

Medavakkam

OMR Madhya Kailash, Perungudi, Thoraipakkam, Sholinganallur, Navalur

GST Tambaram, Vandalur, Potheri, Guduvancherri, Mahindra World City

NH-4 Poonamallee to Sriperumbudur

Chennai

Bangalore

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