Residential Property Research and Forecast Report - April 2016

www.colliers.com/india
Residential Property Research
and Forecast Report
August 2016

Quarterly Review
INDIA | RESIDENTIAL
August 2, 2016
Residential sector
on the cusp of
slow recovery
The Real Estate (Regulation and Development) Act,
2016 has renewed overall market sentiment and
induced a positive feeling amongst buyers. Increasing
enquiries indicate that the transaction volumes
should improve towards the end of the year,
especially during the festive season.
Forecast at a glance
Demand
Demand should stay healthy in the mid-
end segment especially in projects
nearing completions
Supply
Developers are likely to hold new
lauches till the festive season
Capital Values
Should remain stable; however select
prime areas with limited supply should
continue to demand a premium
Rental Rate
To remain stable till the end of this year
as many markets have inventory
overhang
Construction
Developers set to remain focused on
completion and delivery of existing
projects to regain buyers’ confidence
New launches witnessed uptrend
During the second quarter of 2016, the top six cities1 in
India noted the launch of about 24,000 new residential
units, taking the H1 2016 total to approximately 42,000
units. In Q2 2016, Bengaluru witnessed the maximum
number of launches and accounted for about 48% of the
total units followed by Pune 21% and Mumbai 16%.
Gurgaon and NOIDA remained subdued in terms of new
launches as developers remained focused in their efforts
to address the existing inventory overhang.
Developers are offering deep discounts and freebies
across cities to lure fence sitters, investors as well as
end-users. However, we saw most of the sales
happenning in ready to move or in projects nearing
completions.
There have been limited number of new launches in
previous eight-nine quarters. We anticipate an increase
in new launches in coming quarters, as many developers
are looking to the festive season to launch their projects.
Most markets are extremely price conscious and project
pricing should remain a key criterion for the success of a
project.
Return on Alternative Investments
INDICATORS Q1 2016 Q2 2016
QOQ%
CHANGE
Gold 27,583 31.507 14.23%
Silver 35,403 44,755 26.42%
Fixed Deposit*
7.25% 7.25% 0.00%
Equity – BSE 24,346 27,144 11.49%
S&P BSE Realty
Index**
1,176 1,542 31.12%
Source: Government of India, Colliers International India Research
*SBI fixed deposit rate for a period of more than one year and amount
below INR 1 Crores
**S&P BSE Realty Index is a free float weighted index, comprised of
real estate development companies in BSE – 500 Index
1
Bengaluru, Chennai, Pune, Mumbai, Noida and Gurgaon

Colliers Quarterly Q2 2016
MUMBAI | RESIDENTIAL
August 2, 2016
Moving towards
recovery despite a
relaxed quarter
High unsold stocks and lack of potential buyers
should reduce the number of launches in H2 2016.
Transaction volumes are likely to improve towards the
end of the year, especially during the festive season.
Demand
Demand should stay healthy in the mid-
end segment, with buyers looking for
attractive payment plans
Supply
We forecast limited supply additions
due to prevailing inventory overhang
Capital Values
Set to remain stable across most
locations barring a few luxury launches
in Worli and South Mumbai
Rental Rate
Likely to experience a marginal increase
in some micro markets due to limited
supply
Construction
Most projects likely to be completed on
time with minimal delays in permissions
and approvals
Slowdown in residential market
During Q2 2016, new unit launches amounted to 3,800,
raising the total so far this year to 10,300. The decrease
in the number of launches is primarly due to the fact that
Q1 witnessed unit launches in bulk by a few big
developers. Comparatively, there were not many bulk
unit launches in this quarter. Western suburbs such as
Goregaon, Andheri, Malad witnessed 37% of new
launches, followed by Central suburbs (Chembur,
Ghatkopar, Vikhroli) with 22%, Navi Mumbai with 21%,
Thane with 17% and Central Mumbai (Dadar,
Chinchpokli) with 3%.
Some major new launches this quarter include projects
by Godrej Properties (The Trees – Phase II), Sonam
Builders (Indraprasth), Ruparel Realty (Sky Greens) and
Today Global Group (Sai Vrindavan).
Market Trends
Micro Markets
Capital Values
(INR Per Sq Ft)
QOQ%
Change
YOY%
Change
South Mumbai 47,500 - 68,000 -1% -1%
Worli 47,000 - 58,000 -1% 1%
Prabhadevi 46,000 - 55,000 0% -2%
Bandra 30,000 - 52,000 1% 2%
Khar 27,000 - 35,000 2% 3%
Santacruz 24,500 - 29,500 0% 4%
Juhu 27,000 - 32,000 2% 5%
Andheri 19,000 - 22,000 -2% 2%
Powai 21,000 - 27,000 0% 9%
Thane 7,500 - 12,500 - -
Navi Mumbai –
Prime Areas
9,000 - 20,000 - -
Navi Mumbai –
Emerging Areas
5,000 - 10,000 - -
Source: Colliers International India Research
Note: Above values represents indicative base selling price for
premium properties for secondary market products

Copyright © 2016 Colliers International.
The information contained herein has been obtained from
sources deemed reliable. While every reasonable effort has
been made to ensure its accuracy, we cannot guarantee it.
No responsibility is assumed for any inaccuracies. Readers
are encouraged to consult their professional advisors prior to
acting on any of the material contained in this report.
For more information:
Sumit Jain
National Director
Residential Services
Sumit.jain@colliers.com
Kunal Madhani
Deputy General Manager
Kunal.madhani@colliers.com
Authors:
Surabhi Arora
Senior Associate Director
Surabhi.arora@colliers.com
Uttara Nilawar
Manager
Uttara.nilawar@colliers.com
Amit Oberoi
National Director
Amit.oberoi@colliers.com
There was a good mix in the type of new launches this
quarter with several launches in the mid-end (70%), high-
end (25%) and luxury segments (5%).
Average Capital Value Trends
Note: Dotted lines in the chart above represent forecasted values
Average Rental Values
Note: Rental Values in INR per sq ft per month
There has been a marginal increase of 1-2% qoq in
capital values within select micro markets such as Worli,
Bandra, Khar, Juhu and Andheri. Overall, residential
prices in most Mumbai micro markets remain
unchanged. On a similar note, rental values also
exhibited minimal deviation of 1-2% qoq in South
Mumbai and Western micro markets.
Maharashtra Housing and Area Development Authority
(MHADA) has stated that redevelopment of dilapidated
colonies in localities like Bandra, Kurla, Lower Parel is
set to gain pace with MHADA authorities offering new
incentives to developers taking up redevelopment
projects. Thus, new stock should be introduced in the
market in the form of redevelopment projects.
For high-end and luxury apartments, BKC is one of the
emerging new micro markets with major new
completions such as Signia Isles, Signature Island and
Naman Residency. Micro markets in South Mumbai
continue to dominate the high-end luxury residential
market.
Colliers View
There will be limited new project launches in the high
end and luxury segment. However, selected micro
markets in Thane, Kandivali and Navi Mumbai should
witness new launches in the mid-end and affordable
segment. Looking forward, we expect that rents and
capital values will remain stable in the coming quarters
as well.
We expect the health of the market to improve
moderately following the introduction of redevelopment
project incentives by MHADA and the new Development
Plan (DP). The new draft DP strongly emphasises
affordable housing, setting a target of 1.0 million
affordable houses to be built all over India in the coming
years. Developers offering affordable housing projects
will be able to avail Floor Space Index (FSI) of up to 4.0
on all plots. Also, areas previously demarcated as No
Development Zones (NDZs) will be used for such
projects.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q22010
Q22011
Q22012
Q22013
Q22014
Q22015
Q22016
Q22017F
Q22018F
INRpersqft
South Mumbai Worli
Prabhadevi Bandra
Khar Santacruz
Juhu Andheri
Powai Thane
Navi Mumbai - Prime Areas Navi Mumbai - Emerging Areas
0
20
40
60
80
100
120
140
160
180
SouthMumbai
Worli
Prabhadevi
Bandra
Khar
Santacruz
Juhu
Andheri
Powai
Thane
NaviMumbai-Prime
Areas
NaviMumbai-
EmergingAreas
INRpersqftpermonth

GURGAON | RESIDENTIAL
August 2, 2016
Mid segment
gaining traction
Growth in number of new launches should remain
muted in coming quarters if the inventory overhang is
to be addressed. Golf Course Extension Road is
likely to witness an uptick in sales primarily in
projects near completion. Dwarka Expressway may
experience growth in sales volume if the
infrastructure improves in accordance with the recent
timelines issued by the state government.
Demand
Increase in number of enquiries
indicates that demand will pick up in the
coming quarters; demand shall remain
skewed towards developers with proven
track record
Supply
Limited new launches likely in the short
term amidst rising concerns about
consumer activism, litigation and
Regulatory Act coming into force
Capital Values
Set to remain stable in most of the micro
markets in the short term
Rental Rate
Should remain stable due to high
vacancy in prime projects and large
supply pipeline
Construction
A number of projects should see
completion in micro markets such as
Golf Course Road and New Gurgaon
Subdued growth in new launches
The second quarter of 2016 continued to see subdued
transaction volume. Most of the developers have
exercised caution in their launch strategies, as the
markets have registered a build-up of inventory due to
lower sales volume from last nine quarters. In total, 1,580
units were launched this quarter in the mid-luxury
segment. Notably, the Tata La Vida project was launched
on Dwarka Expressway in Sector 113 at a base price of
INR 8,500 per sq ft in affordable luxury segment.The
project was launched at about 20% less than the previous
launch of Tata Gateway at the same location in 2013
which was a high-end project. Ambience Group launched
2 BHK apartments in Ambience Creacions, Sector 22 at a
base price of INR 10,500 per sq ft.
Golf Course Extension Road has started gaining impetus
with the completion of a few projects. Major deliveries
include Pioneer Park and Emaar MGF Palm Drive.
Besides this, New Gurgaon micro market has started
witnessing end-user activity in both the rental and sale
segments on account of its connectivity with NH8 and
Manesar. Currently, the absorption of residential space in
this area is skewed towards the INR4,500-6,000 per sq ft
price band and rents are very low due to absence of
proper social infrastructure.
Market Trends
Micro Markets
Capital Values
(INR Per Sq
Ft)
QOQ%
Change
YOY%
Change
Golf Course Road 11,000-36,000 0% 0%
Sushant Lok 14,500-18,000 8% 0%
DLF Phase 1 11,000-13,000 0% 0%
NH-8 10,000-18,000 -2% 0%
Sohna Road and Ext 6,500–11,000 4% 0%
premium properties for secondary market products.

Sumit Jain
National Director
Avnish Yadav
Avnish.yadav@colliers.com
Authors:
Surabhi Arora
Parul Bhargava
Senior Analyst
Parul.bhargava@colliers.com
Amit Oberoi
National Director
The capital values have registered a slight correction in
NH8 compared to the previous quarter. However,Sushant
Lok and Sohna Road have recorded an escalation in the
range of 4% to 8% in capital values owing to their
strategic location; an uptick in construction activity in this
area by local builders was noted.
Rental values have remained stable compared to Q1
but declined by an average of 22% versus Q2 2015.
The correction in rents has been primarily seen in the
luxury segment.
Amidst heightened concerns over the delay in
possession and high price points, affordable housing is
gaining traction in the newly developed sectors across
the city. Developers are pushing hard to grab the
opportunity in the price range of INR 15 lakhs to 25 lakhs
for one and two bedroom, home and kitchen apartments.
It also allays the fear of delay in possession because
government notification for affordable housing states that
all such projects should be necessarily completed within
four years of the approval of building plans or grant of
environmental clearance, whichever is later.
In Q2 2016, the Transit Oriented Development (TOD)
Policy was approved by the district planning committee
which aims to wean off the problem of traffic congestion
by proposing a Floor Space Index (FSI) of 3.5 in the
Intense TOD Zone and FSI of 2.5 in the Transition TOD
Zone. Multi storey group housing projects adjoining the
proposed Metro links along SPR and NPR should benefit
in the long term owing to scope for redesigning and
availability of vacant land parcels. Mature and saturated
corridors such as Golf Course road will have much
lesser leeway in redesigning.
Colliers View
We expect New Gurgaon to see increased traction on
account of its good connectivity with NH-8 and
availability of number of residential projects in the mid-
segment and affordable category. However, social
infrastructure development will remain a challenge in
short term. Recently, the Dwarka Expressway has been
granted the National Highway status and also the
development body has decided to alter the alignment of
Sector 37C- 37D Road which will augment the
connectivity of these areas to other parts of the city
through Pataudi Road. The initial response in the newly
launched projects indicates that the market has latent
demand and smaller units are more likely to draw the
attention of buyers.
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
Q22010
Q22011
Q22012
Q22013
Q22014
Q22015
Q22016
Q22017F
Q22018F
INRpersqft
Golf Course Road Sohna Road & Ext
DLF Phase I Sushant Lok
NH-8
0
10
20
30
40
50
60
GolfCourseRoad
SohnaRoad&Ext
DLFPhaseI
SushantLok
NH-8
INRpersqftpermonth

NOIDA | RESIDENTIAL
August 2, 2016
Demand likely to
improve in coming
quarters
Following the entry of national level players such as
Godrej and Tata Housing in NOIDA market, the
market should see a couple of new launches in H2
2016. A number of projects are likely to see
completion in the wake of the Real Estate (Regulation
and Development) Act, 2016 and ongoing consumer
activism and protests over project delays.
Demand
Mid segment ready to move in
projects are likely to remain in
demand in H2 2016
Supply
We expect a number of new project
launches by national level developers
during upcoming festive season
Capital Values
Set to remain stable in most of the
micromarkets
Rental Rate
Shall remain under pressure in H2
2016 due to continuous addition of
new supply
Construction
Developers are likely to push
completion of existing projects amidst
increased disrest among buyers over
project delays
Government contemplating
initiatives to allay the fears of
homebuyers
During Q2 2016, almost 6,000 units were issued
completion certificates, most of them located in Sectors
45, 74,75,76 and in sectors along NOIDA Expressway.
Amidst heightened concerns over the delay in possession
and to allay the fear of home buyers, the authorities of
Noida, Greater Noida and Yamuna Expressway have
decided to hire an external agency for floor wise
monitoring of residential and commercial realty projects
so that the developer is left with no leeway in deviating
from the sanctioned plans.NOIDA Authorities are also
mulling an exit policy for beleaguered developers looking
to surrender surplus land to deal with the liquidity issues.
Rents in all the micro-markets have remained stagnant in
Q2 except Sector 92 and 93 which have registered a 6%
dip in rents. A number of new projects witnessed
completion in sectors along NOIDA expressway.The
increase in supply has resulted in downward pressure on
rental values.
Market Trends
Micro Markets
Capital Values
(INR Per Sq
Ft)
QOQ%
Change
YOY%
Change
Sector 44 7,400 - 9,500 0% -16%
Sector 92,93 6,500 – 9,500 -6% 3%
Sector 50 6500 - 8000 0% -1%
Sector 61,62 5,800 – 6,200 0% -3%
Sector 28,29,37 7,500–9,500 0% 0%
Sector 70 to 79 4,300-5,500 -1% 8%

Sumit Jain
National Director
Avnish Yadav
Avnish.yadav@colliers.com
Authors:
Surabhi Arora
Parul Bhargava
Senior Analyst
parul.bhargava@colliers.com
Amit Oberoi
National Director
Similarly, capital values in developed sectors along the
Expressway also witnessed a correction of 6% on a QOQ
basis mainly on account of increased supply in the market.
Over Q2, a few national level real estate developers
have evinced interest in NOIDA and laid out plans to
expand their footprint in the city by entering into
partnerships with local developers.Godrej Properties
tied up with AR Landcraft to develop a 100 acre
township project at Greater NOIDA. It also partnered
with Lotus Greens in the last quarter to develop 36
acres of land parcel in Sector 150. In an another deal,
ATS Infrastructure formed a second joint venture with
Logix group to develop a mixed-use project on a 12
acre land parcel in Sector 124. Altico Capital also
forayed into the market in partnership with Lotus
Greens group for a residential project named 'Arena I',
which is part of a larger Sports City development at
Sector-79. This should bring in much required credibility
and help to ease the bearish sentiment.
Notwithstanding a sluggish growth in the residential
segment, the Noida Authority gave approval for a
14.19% hike in land allotment rates which will lead to
further augmentation in prices. Land rate in A category
highly-developed residential sectors like 14, 14A, 15A,
was enhanced from INR 68,750 to INR 81,400. For
group housing, the minimum reserved price which was
between Rs 35,420 and Rs 93,750 depending on the
category of sectors have been revised and are now in
the range of Rs.41,940 to Rs. 111,000.
Colliers View
With numerous elevated road, bridges and metro route
projects in construction phase and a number of projects
witnessing completions, NOIDA should see an increase
in residential demand in H2 2016.The fact that many
IT/ITeS companies have signed up office spaces in H1
2016 augers well for residential market in the medium
term.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q22010
Q22011
Q22012
Q22013
Q22014
Q22015
Q22016
Q22017F
Q22018F
INRpersqft
Sector 44 Sector 50
Sector 61,62 Sector 92/93
Sector 28,29,37 Sector 100 to 110
Sector 70 to 79
0
5
10
15
20
25
30
Sector44
Sector50
Sector61,62
Sector92/93
Sector
28,29,37
INRpersqftpermonth

BENGALURU | RESIDENTIAL
August 2, 2016
End-user demand
to drive new
launches
Strong office sector performance and development of
various IT Parks in several southern, eastern and
south eastern peripheral locations should boost
residential sales in these areas.
Demand
Likely to strengthen as a consequence
of strong office sector demand
Supply
Current oversupply situation and
delayed project deliveries likely to curtail
new launches in the next quarter
Capital Values
Set to remain stable while a few micro
markets such as Kormangala,
Jayanagar and Sadashivanagar may
witness a slight uptrend due to limited
supply
Rental Rate
Should remain stable in H2 2016 due to
continuous addition of new supply
Construction
Developers set to remain focused on
completion and delivery of existing
projects to regain buyers’ confidence
Spurt in new project launches
New unit launches in Bengaluru’s residential property
market almost doubled from Q1 2016 and stood at
nearly 11,500 units at the end of Q2. Steady end-user
demand coupled with strong office market fundamentals
which are crucial to development of new residential
clusters remained the primary catalyst behind the high
volume of new launches in this quarter.
A high proportion, 62%, of new launches in this quarter
was concentrated in the peripheral areas of existing
commercial hubs in the city. In terms of location,
Devanahalli (26%), Budigere Cross (14%) and
extensions of Kanakpura Road (12%) comprised a
significant share of total new launches.
Interestingly, the new project launches have happened
at about 10% lower than last quarter‘s weighted average
prices which shows buyers‘ sensitivity towards
affordability.
Market Trends
Micro Markets
Capital Values
(INR Per Sq
Ft)
QOQ%
Change
YOY%
Change
Central 20,000-30,000 0% 4%
Cooke Town 7,500-14,000 0% 0%
Jayanagar 8,500-10,500 0% 0%
Sadashivanagar 9,000-15,000 0% 0%
Airport Road 8,500-11,000 0% 8%
Indiranagar 8,000-13,000 5% 5%
Bannerghatta
Road
5,000-8,500 4% 4%
Kormangala 7,000-11,000 6% 6%
Whitefield 5,000-8,500 6% 6%
Yelahanka 4,000-10,000 0% -7%

Sumit Jain
National Director
Aakanksha Anand
Senior Manager
Aakanksha.anand@colliers.com
Authors:
Surabhi Arora
Divya Grover
Senior Manager
Divya.grover@colliers.com
Amit Oberoi
National Director
Mid-end apartment projects in peripheral locations with
smaller configurations were most prevalent in this quarter’s
launches which augurs well with the target end-user
segment of information technology workforce across the
city.
Capital values largely remained stable barring a few
micro markets near central areas such as Indiranagar
and Kormangala which noted a 5-6% q-o-q uptick due
to revision in guidance values along with property
taxes earlier in the year.
Established peripherals such as Whitefield and
Bannerghatta Road also noted a 6% q-o-q uptick for
the same reason. However, rental values largely
remained stable across micro markets.
This quarter also witnessed the completion of a few
residential projects near the southern peripheral areas of
Outer Ring Road, Electronics City and Whitefield.
Prominent amongst those were Bren Palms on Hosur
Road and Amber by Concorde Group on Sarjapur Main
Road.
Colliers View
Unwavering demand in the office sector coupled with the
inherent popularity of Bengaluru amongst global
corporates is a positive sign for Bengaluru’s residential
sector in the mid to long term. Despite several
challenges related to physical infrastructure, the
inauguration of Bengaluru Metro Rail Corporation
Limited (BMRCL)‘s 17 kms underground Purple Line
should boost connectivity between Baiyappanahalli in
east with Mysuru Road in the west.
The state government has also approved the proposed
Elevated Corridor Project of Bengaluru Development
Authority (BDA) which will connect Basaweshwara Circle
to Hebbal Flyover and reduce the commute time to the
airport considerably. However, as these infrastructure
projects will likely take a long time to be completed, the
inner city areas and southern and eastern peripheral
areas should continue to lead the end-user demand.
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
Q22010
Q22011
Q22012
Q22013
Q22014
Q22015
Q22016
Q22017F
Q22018F
INRpersqft
Central Cooke Town Jayanagar
Sadashivanagar Airport Road Indiranagar
Bannerghatta Road Kormangala Whitefield
Yelahanka
0
10
20
30
40
50
60
70
80
Central
CookeTown
Jayanagar
Sadashivanagar
AirportRoad
Indiranagar
BannerghattaRoad
Koramangala
Whitefield
Yelahanka
INRpersqftpermonth

CHENNAI | RESIDENTIAL
August 2, 2016
Recovery on cards
but at slower pace
Rising office sector absorption coupled with several
planned infrastructure upgrades is helping to revive
the sentiment amongst end-users in the residential
segment. Increasing enquiries, value deals and
vigorous marketing by developers should all help
revive the sector in H2 2016.
Demand
Enquiries have started picking up for
ready to occupy residential stock. We
expect this trend to continue in H2 2016
Supply
Limited new supply likely to enter the
market in the wake of project delays
Capital Values
May remain steady with some locations
such as Boat Club and Nungambakkam
demanding higher capital values due to
limited land availability
Rental Rate
Likely to remain stable till the end of the
year due to current availabilities
Construction
Delays in obtaining project approvals as
well as construction delays will probably
result in limited new completions
New launches remain steady
During Q2 2016, Chennai’s residential property sector
showed green shoots of recovery as new unit launches
remained steady over the previous quarter and stood at
about 2,100 units. This is primarily because of increased
confidence amongst property developers owing to a
stable state government retaining power following the
Tamil Nadu Assembly Elections 2016. In keeping with
end-users‘ need for affordability, developers steered
clear of launching projects aimed at high-end and luxury
segments and focused on the mid-segment (78%) and
affordable (21%) categories at competitive base selling
prices to boost sales velocity.
The weighted average base selling price for all units
launched this quarter was INR 4,500 per sq ft which is
20% lower than Q1 2016 when it was recorded at INR
5,600 per sq ft. Of all locations, Poonamallee comprised
nearly 38% of total launches as a young demographic
segment employed in nearby information technology and
manufacturing hubs with high disposable incomes is
emerging as a key demand driver. Connectivity to pivotal
arterial roads such as the NH-4, Chennai Bypass Road
and Outer Ring Road is a major draw for this location.
Market Trends
Micro Markets
Capital Values
(INR Per Sq
Ft)
Q0Q%
Change
YOY%
Change
Boat Club 26,000-35,000 0% 0%
Nungambakkam 19,000-26,000 0% -6%
Alwarpet 18,500-26,000 0% -3%
Besant Nagar 13,500-17,500 0% -2%
Adyar 13,000-17,000 0% 0%
Anna Nagar 13,500-17,000 0% 3%
T. Nagar 13,500-20,500 0% 5%
Velachery 7,000-10,000 0% 10%
Sholinganallur 4,800-5,950 0% -4%
Siruseri 3,990-5,500 0% -10%
premium properties in secondary market

Sumit Jain
National Director
Authors:
Surabhi Arora
Divya Grover
Senior Manager
Divya.grover@colliers.com
Amit Oberoi
National Director
Other peripheral locations such as Thirumuzhisai (11%)
and Avadi (11%) also noted significant launches in the
affordable segments as two mid sized housing apartment
projects were launched by renowned developers.
Capital values and rental values remained stagnant
during this quarter owing to low sales velocity and
delays in delivery of new residential projects to end-
users. These factors have rationalised prices in most
micro-markets.
Value deals from developers such as free car parking,
cash discounts, floor rise charge waiver and freebies
such as home furnishings are driving sales amongst
buyers in favoured locations. East Coast Road,
Alwarpet, R.A. Puram, Medavakkam and Pallikarnai
are a few locations where such deals have taken place
in the recent months.
The steady growth of the commercial office sector, the
boost to manufacturing jobs and capacity expansion in
other sectors are positive growth signs for the residential
market.
Colliers View
The overall outlook for the residential property sector
is positive as an uptrend in launches coupled with
aggressive marketing by developers should help
drive sales recovery going forward. We expect that
the extension of Chennai Metro Rail Phase I from
Little Mount to Chennai Airport will improve
connectivity on this 9 kms stretch by the end of this
year. Once operational, Phase I expansion should
help improve connectivity to the Central Business
District (CBD) and south-west suburbs and stimulate
housing demand near these micro-markets. Chennai
Metro Rail Limited (CMRL) has also received
approval from the state government to carry out a
project feasibility study for Phase II which will cover
the North West and South East corridors.
With several government initiatives such as the
proposed Chennai-Bengaluru Industrial Corridor (CBIC)
to boost the manufacturing sector, more jobs should be
created which will spur housing demand in the long term.
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
Q22010
Q22011
Q22012
Q22013
Q22014
Q22015
Q22016
Q22017F
Q22018F
INRpersqft
Boat Club Nungambakkam Anna Nagar
Adyar Besant Nagar T. Nagar
Alwarpet Velcachery Sholinganallur
0
10
20
30
40
50
60
70
80
BoatClub
Nungambakkam
AnnaNagar
Adyar
BesantNagar
T.Nagar
Alwarpet
Velachery
Sholinganallur
Siruseri
INRpersqftpermonth

PUNE | RESIDENTIAL
August 2, 2016
Market sentiment
likely to improve
further in H2 2016
With steady growth in the number of launches this
quarter, Pune is likely to see an increase in
developers offering big discounts to conclude
transactions for potential clients so that they can turn
their focus to new launches in coming quarters.
Demand
Enquiry to conversion ratio set to
improve in H2 2016
Supply
We expect a decrease in the number of
new launches in the short term as
developers are likely to hold new
launches till the festive season
Capital Values
Should remain stable; huge supply
pipeline should prevent prices from
rising
Rental Rate
Continued trend of stable rents over the
last two quarters should prevail in H2
2016 as well
Construction
Uncertainty due to the adoption of new
Development Control Regulations in
Pune likely to cause delays in
completion of projects
QoQ increase in new launches
The Pune residential market witnessed launch of about
5,000 units in Q2 2016, bringing the total for the year to
7,200. The number indicates that new launches more
than doubled in Q2 over Q1. However, these unit
launches were mostly concentrated in select micro
markets where a few major developers have launched
huge residential projects on large land parcels
admeasuring 15 - 20 acres. Most of these developments
cater to high end or luxury segment. The mainstay of the
business of Pune developers, the budget segment, i.e.
homes in the price range of INR 35 to 45 lakh has
experienced a slow quarter in terms of new launches.
The micro market in east Pune, Mundhwa had the
highest number of unit launches with a 46% share, all in
the mid segment. It was followed by Wakad and Baner
with 24%, Undri with 12%, Balewadi and Bavdhan with
7%, Pimpri with 6% and lastly Kalyani Nagar with 5%.
Launches in north and west Pune were mostly in the
mid-end segment.
Market Trends
Micro Markets
Capital Values
(INR Per Sq
Ft)
QOQ%
Change
YOY%
Change
Kalyani
Nagar/Viman
Nagar/Karadi
5,800-16,500 0% -4%
Deccan/Camp/
Boat Club
7,000-15,000 0% -4%
Magarpatta/
Hadapsar
4,800-7,800 0% 0%
Baner/Hinjewadi/
Wakad/Pashan
4,800-9,500 0% 0%
Kothrud/Bavdhan/
Wajre
6,200-12,000 0% 0%
NIBM/Undri/
Kondhwa
4,400-6,250 0% -5%
Pimpri/Chinchwad
/Chakan
4,700-5,800 0% -4%
Note: Above values represent indicative base selling price for premium
properties for secondary market products

Sumit Jain
National Director
Hiren Bulsara
Assistant Manager
Hiren.bulsara@colliers.com
Authors:
Surabhi Arora
Uttara Nilawar
Manager
Uttara.nilawar@colliers.com
Amit Oberoi
National Director
QoQ capital values and rental values remained stable;
however, we have observed a 4-5% decline in capital
values since last year.
Business in Pune residential real estate is largely driven
by the demand engendered due to large number of
professionals employed by the IT/ITeS sector. As these
companies are moving their headquarters to other new
locations such as Kharadi, Bavdhan and Yerwada,
buyers have been encouraged to consider buying homes
in far flung locations such as Wagholi, Punawale,
Marunji and Undri.
Major developers such as Godrej Properties (Godrej
Infinity at Mundhwa), Kolte Patil (Western Avenue at
Wakad), Nyati Group (Nyati Equatorial at Bavdhan),
Naiknavare Developers (Avon Vista at Balewadi)
continued to dominate the residential market in Q2 in
terms of new launches. The Bangalore-based premier
real-estate developer, Puravankara Projects, has
launched its first project, Purva Silversands in Mundhwa.
Colliers View
The Pune market is experiencing a wave of uncertainity
at the moment due to the introduction of new
Development Control Regulations (DCR). Developers
catering to the affordable segment are cautious about
launching new projects. The DCR will bring in new
norms such as increase in floor space index (FSI)
usage, transfer of development rights applicability and
the introduction of fungible FSI once they receive a nod
from the state government. We expect the residential
market to pick up once DCR norms are approved.
The long awaited metro project is also scheduled to start
in subsequent quarters which should lead to an increase
in land values in adjoining areas, thereby possibly
pushing up capital values at some favourable locations.
Pune Municipal Corporation is planning to take up 14
smart city projects recently launched by Prime Minister
Narendra Modi.
We expect Pune to capitalise on several of the
aforementioned circumstances making it one of the most
dynamic residential markets in the country.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q22010
Q22011
Q22012
Q22013
Q22014
Q22015
Q22016
Q22017F
Q22018F
INRpersqft
Kalyani Nagar/Viman Nagar/Kharadi Deccan/Camp/Boat Club
Magarpatta/Hadapsar Baner/Hinjewadi/Wakad/Pashan
Kothrud/Bavdhan/Wajre NIBM/Undri/Kondhwa
0
5
10
15
20
25
30
35
40
Kalyani
Nagar/Viman
Nagar/Kharadi
Deccan/Camp/B
oatClub
Magarpatta/Had
apsar
Baner/Hinjewadi/
Wakad/Pashan
Kothrud/Bavdha
n/Wajre
NIBM/Undri/Kon
dhwa
Pimpri/Chinchwa
d/Chakan
INRpersqftpermonth

ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report.
About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is an industry leading global real estate services
company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture
occupiers, owners and investors worldwide. Services include strategic advice and execution for property
solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
help clients accelerate their success. Colliers has been ranked among the t
International Association of Outsourcing Professionals’ Global Outsourcing for 11 consecutive years, more
colliers.com
554
66 countries on
6 continents
United States: 153
Canada: 34
Latin America: 24
Asia : 39
ANZ: 192
EMEA: 112
$2.5
billion in
annual revenue
2
billion square feet
under management
16,000
professionals
Primary Authors:
Surabhi Arora
Senior Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Parul Bhargava
Senior Analyst | Research
parul.bhargava@colliers.com
Divya Grover
Senior Manager | Research
divya.grover@colliers.com
Uttara Nilawar
Manager | Research
uttara.nilawar@colliers.com
Amit Oberoi
National Director | Knowledge Systems
amit.oberoi@colliers.com
Colliers International
Technopolis Building, 1st Floor,
DLF Golf Course Road,
Sector 54, Gurgaon - 122 002
TEL +91 124 456 7500
Sumit Jain
National Director | Residential Services
sumit.jain@colliers.com
For Residential Services:

Residential Property Research and Forecast Report - April 2016

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Residential Property Research and Forecast Report - April 2016