Pulse. Market Highlights JULY Get city Pulse by clicking below. Monthly Real Estate Monitor

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1 Market Highlights JULY 2017 Office space demand continued to improve across most cities Get city by clicking below Retail space demand improved in Bangalore, Chennai, Kolkata and Mumbai Residential demand remained muted in most cities

REITs in India Opportunity Awaits Considering the capital-intensive nature of the commercial real estate sector as an investment avenue and also the limited investment opportunities with regards to

In simple terms, a REIT is an investment tool that owns and operates real estate assets and even allows individual investors to invest in and earn income through partial/equity level ownership of

It is modelled after mutual funds and provides its investors with all types of income streams, as well as the benefits of long-term capital appreciation.

2 REITs in India Opportunity Awaits Considering the capital-intensive nature of the commercial real estate sector as an investment avenue and also the limited investment opportunities with regards to high-grade office assets, REITs (Real estate investments funds) will be a big boon for the Indian real estate industry. In simple terms, a REIT is an investment tool that owns and operates real estate assets and even allows individual investors to invest in and earn income through partial/equity level ownership of commercial real estate without actually having to buy those assets. It is modelled after mutual funds and provides its investors with all types of income streams, as well as the benefits of long-term capital appreciation. It also trades on major stock exchanges and provides investors with a highly liquid stake in real assets typically offering high yields. Over the last decade, globally, REITs have developed into a mature market force, providing easy access to high-quality assets along with stable return on investments. To illustrate as of 2016, there were over 500 REITs operating across various countries, with total market capitalization of more than USD 900 billion. Given the current sluggish demand for residential real estate in India, the office sector provides some relief for real estate developers, given the declining vacancy levels and improving rents. With declining vacancies, superior quality buildings in CBDs, SBDs and PBDs are likely to see maximum REITable assets. Close to 283 million sq ft of office space in India is REITable. Currently, there are 901 REIT-worthy properties in India. There is no doubt that REITs will provide access to highly lucrative assets, such as large-scale commercial properties and high-quality retail assets, that may be otherwise out of reach for individual investors. Once the first REIT listing goes live in India, we will definitely see significant increase in institutional and retail investor participation in this market. RAMESH NAIR CEO & Country Head For further reading please refer to following link: Market Sentiment Deal of the month Think About it!! The government pegged the GST on under-construction real estate at 18% that will be applicable on two-thirds of the value of the property. This will bring down the effective rate to 12% when calculated on the entire value Investment sentiment improving Green Wall Legend: Market Sentiment Next Homegrown private equity firm Milestone Capital Advisors Ltd has backed an underconstruction project of Bengaluru-based Shriram Land Development At the stroke of midnight on the last day of June, India formally entered the Goods and Services (GST) Tax era. Policy mandates energy efficient buildings in India state. All new constructions in Maharashtra, India, will have to be ecofriendly and comply with the energyefficiency regulations Favourable Neutral Unfavourable

Weather Map Cities Office Rental Value Retail Rental Value Resident ial Capital Values AHMEDABAD DELHI MUMBAI DELHI PUNE BANGALORE AHMEDABAD KOLKATA CHENNAI MUMBAI PUNE HYDERABAD HYDERABAD KOLKATA

3 Weather Map Cities Office Rental Value Retail Rental Value Resident ial Capital Values AHMEDABAD DELHI MUMBAI DELHI PUNE BANGALORE AHMEDABAD KOLKATA CHENNAI MUMBAI PUNE HYDERABAD HYDERABAD KOLKATA Legend Growing Stabilise Stagnate Falling BANGALORE CHENNAI For more information about our research, contact Ashutosh Limaye National Director, Research and REIS Sushma Vemuri Analyst, Research and REIS Research Dynamics 2016 reports from JLL are frequent updates on real estate market dynamics.

Ahmedabad Policy/ Infrastructure Ahmedabad Office Market recorded moderate transaction activity during the month. The demand was seen in pockets of SBD submarket especially in Prahlad Nagar.

4 Ahmedabad Policy/ Infrastructure Ahmedabad Office Market recorded moderate transaction activity during the month. The demand was seen in pockets of SBD submarket especially in Prahlad Nagar. Companies from the manufacturing and pharmaceutical category were the major occupiers. Gift City is attracting occupiers from BFSI sector to set up large offices. Select mixed use developments and malls saw retail space being taken up from occupiers from the wellness and supermarket category. Typical transactions size was 10,000 sq ft 15,000 sq ft Gymnasium Chain in Satellite Vijay Sales in Suburbs During the month, residential launches were low. The developers emphasised selling the unsold inventory in their ready projects. During the month, a direct impact of demonetisation continued on Ahmedabad residential market. The sales remained slow. Ahmedabad has been declared a World Heritage City by UNESCO, historians, urban planners and others hope that policy-makers will stop looking at heritage as a "burden". The city's historic characteristics include densely-packed traditional houses ('pols') with features such as bird feeders, public wells and religious institutions. ft) Prahlad Nagar S G Highway Ashram Road Navarangpura Koba ft) CG Road SG Highway Ashram Road Chandkheda-Motera Prahladnagar (INR per month for a 1,000 sq ft ft) Naroda Gota Navrangpura SG Highway Satellite South Bopal / () / s () Stable Fall Falling

5 Bangalore Leases were strong over the month. Most of the transactions were in Central Bangalore and Prime Suburbs. Major transactions WeWork leased space at Residency Road Indiqube leased space at Richmond Road DDB Mudra leased space at Wind Tunnel Road. The fitness and wellness centers like Gym and Yoga followed by F&B are emerging sectors in the suburbs of Bangalore. People leased space at Sahakaranagar Cult leased space at Doddanekundi and BTM Thai House leased space at Indiranagar. Though launches dropped over the quarter, there was slight raise of supply in West Bangalore Key Provident Vriksha at Off Magadi Road Gopalan Lake Front at Electronic City Vajram New Town at Thanisandra Main Road Policy/ Infrastructure The Metro stretch which is between Sampige Road- Yelachenahalli was inaugurated by Pranab Mukherjee in last month. With the launch, the 42-km Phase I network of Namma Metro will be fully operational. Rental Value (INR per sq ft per month) ft) CBD ,000 22,000 Old Airport Road ,000 15,000 Outer Ring Road (Eastern) ,000-9,000 Old Madras Road ,000 8,500 Whitefield ,800-6,000 Electronic City ,500 4,500 ft) Koramangala ,000 18,000 Indiranagar ,000 30,000 New BEL Road ,000 15,000 Commercial Street ,000 40,000 Jayanagar ,000 30,000 (INR per month for a 1,000 sq ft ft) Old Madras Road Indiranagar Bellary Road 12,000-18,000 4,900-7,600 Hosur Road 13,000-20,000 4,300-6,500 Whitefield 15,000-25,000 4,500-8,000 Tumkur Road 8,000-15,000 4,200-6,500 Kanakapura Road 8,000-15,000 4,000-6,000 Mysore Road 9,000-13,000 3,000-5,500 / () / s () Stable Fall Falling

6 Chennai Occupier preference for OMR continues with OMR-Post Toll belt gaining substantial traction in terms of enquiries. High occupier interest in premium quality supply in Chennai's office sector. IBM at Porur per sq ft per month) ft) Mount Road ,000-16,500 RK Salai ,000-15,000 Pre-toll OMR ,000-6,500 Post-toll OMR ,000-6,000 Guindy ,500-9,000 Apparel, accessories and electronics retailers drove demand for space in main streets.. Reliance trends at Vivira Mall Zivame at KNK Road per sq ft per month) ft) T. Nagar ,000-15,000 Nungambakkam ,000-16,000 Velachery ,000-12,000 Pre-toll OMR ,000-11,000 Policy/Infrastructure There was a lull in the residential real estate market primarily owing to restrictions in cash and ripples in political situation in the city. New : BBCL Evita at Perungudi All developers are now mandated to register with TNRERA ahead of launching new projects by furnishing various details on the website to help the public access them. Buyers can also file their complaints with the regulatory authority on the website. Anna Nagar ,000-13,000 LB Road (Adyar) ,500-13,500 per month for a 1,000 sq ft ft) Adyar 20,000-30,000 18,000-22,000 Medavakkam 11,000-14,000 4,000-6,000 Tambaram 8,000-15,000 4,000-6,000 Anna Nagar 18,000-25,000 10,000-15,000 Porur 7,000-12,000 4,200-6,200 Sholinganallur 9,000-12,000 4,500-6,000 / () / s () Stable Fall Falling

7 Delhi NCR continues to show resilience with space take-up driven by technology, e-commerce, consulting and BFSI firms Boeing in CBD, Safran In Aerocity- SBD, Kinapse in DLF Cybercity- Gurgaon, Amazon in Noida New Completions: Imperia H2O Onyx Tower in Greater Noida; Candor Techspace IT Park in Noida City ft) Barakhamba Road ,000 35,000 Jasola ,000 18,000 DLF Cybercity NA MG Road , ,500 Golf Course Road ,500 17,000 Leasing activity remains impacted due to lack of vacant space in superior malls with most wellknown brands preferring these select malls only Skechers in Gurgaon, Clarins in Noida, Lifestyle in Ghaziabad New Completions: None ft) South Delhi ,000 40,000 West and North Delhi ,000 23,000 Gurgaon MG Road ,500 23,000 Rest of Gurgaon ,000 14,000 Sales continue to slump in NCR with buyers waiting for impact of RERA and GST; developers focus on completing pending projects and ensure RERA compliances. Prices remain under pressure with discounts and price cuts widely available. New : Ace Divino in Greater Noida (Noida Extension) Policy/ Infrastructure Gurugram Metropolitan Development Authority ordinance passed by Haryana to improve pace and quality of development in Gurgaon s urban areas. In Haryana, Occupancy certificate to be issued for projects on plot size of 500 sqm or above only after certificate of installation of solar power plant. Government plans for 240 acre greenfield city in Ghitorni- South Delhi Noida ,000 25,000 Ghaziabad ,500 16,000 (INR per month for a 1,000 sq ft ft) Golf Course Road 27,000 32,000 13,000 15,000 Sohna Road 17,000 20,000 5,800 7,200 Golf Course Extension Road 19,000 22,000 7,500 10,000 Dwarka Expressway NA 5,000 7,500 Noida Greater Noida Expressway 13,000 15,000 4,300 6,500 Noida City 12,000 14,500 4,600 6,000 Indirapuram 11,000 12,000 4,500 5,300 / () / s () Stable Fall Falling

8 Hyderabad Leases remained strong over the quarter. Most of the transactions were recorded in West Suburbs of the City. Major transactions Ness leased space at Raiburg Service Now, Wiseman, Techaspect, Intellect, Gamma and Awfis leased space at Hitech City. Vivimed Pharma and Socronics leased space at Banjara Hills.. With no retail mall completion in Hyderabad in the month of June and with negligible lease transactions being observed in the organized retail sector, Hyderabad continues to remain a high street driven retail market. Centro leased space at Madeenaguda in Hyderabad saw a slight rise when compared to that of the last month and overall sales were stable. Key Aryamitra Bay Hills and Poe Towers at Narsingi Aakriti A Viva at Tellapur Policy/Infrastructure Mega infrastructure projects planned for Hyderabad such as skyways, multi-grade separators, multi-level flyovers and suspension bridges are in trouble as the BRICS Bank is yet to sanction the loans. per sq ft per month) ft) Begumpet ,500-6,500 Banjara Hills ,000-8,000 Hitec City ,000-7,000 Gachibowli ,500-6,000 Uppal ,500-5,500 per sq ft per month) ft) Banjara Hills-Jubilee Hills ,500-16,000 Secunderabad ,000-13,000 Hitec City ,000-14,000 Kukatpally ,000-11,500 Himayatnagar ,000-17,000 per month for a 1,000 ft) sq ft Banjara Hills 25,000-35,000 7,000-15,000 Begumpet 17,500-25,000 4,500-5,500 Kondapur 11,000-20,000 3,800-5,000 Gachibowli 11,000-20,000 3,500-4,800 Tellapur 7,000-12,500 3,000-3,800 Kukatpally 15,000-20,000 4,000-5,000 / () / s () Stable Fall Falling

9 Kolkata Business centres and co-working spaces continue to attract the interest of office occupiers. Office sector experiences a steady demand across micro-markets with the number of enquiries for leasing of space witnessing an increase. Though there has been no transaction in the month of June, some of the transactions are in the final stage. for retail space both in malls and high streets has been increasing steadily in the city with some major transactions being: Spencers at Sodepur, North Kolkata Biba at Acropolis Mall, Kasba W, Manyavar, Apple & Noodles Story at Diamond Plaza Mall, Nagerbazar Brand Factory at Dum Dum Enquiries from end users and investors have been steady in the month of June. However, the number of sales/transactions both in the primary and secondary residential market has not been very remarkable. Some of the residential launches in June were: Allure at Tangra, off E.M. Bypass Unimark Sports City at Barasat Policy/Infrastructure A joint study by IIT-Kharagpur and the Indiana University of Pennsylvania, will look into the increasing presence of non-bio-degradable chemicals in the water of endangered East Kolkata wetlands HIDCO has started the lottery process to distribute 75 residential plots in New Town Action Area II per sq ft) Park Street ,000-20,000 Topsia ,000-12,000 Kasba ,000-11,000 Salt Lake Sector V ,500-4,500 New Town and Rajarhat ,200-4,100 per sq ft) Elgin Road ,000-28,000 Park Street (high street) ,000-31,000 Prince Anwar Shah Road ,000-18,000 Salt Lake ,000-20,000 New Town and Rajarhat ,500-8,000 Gariahat (high street) ,000-22,000 per month for a 1,000 sq ft ft) Alipore N.A 15,000-23,000 Prince Anwar Shah Road 20,000-35,000 6,000-12,000 EM Bypass (Topsia) 25,000-35,000 6,000-10,000 Lake Town 10,000-16,000 4,000-7,500 New Town (AA- I, II & III) 18,000-30,000 3,500-6,000 Rajarhat 7,000-14,000 2,500-4,500 Behala 7,000-14,000 3,000-5,500 / () / s () Stable Fall Falling

10 Mumbai Mumbai Office Market witnessed moderate transactions during the month. Small sized offices were seen getting transacted especially in SBD North and Eastern Suburbs. Occupiers from BFSI and media industry drove the demand. Innov8 in SBD North Angus Chemicals in Eastern Suburbs leasing was observed in the month. Retailers in the apparel and accessories category were active during the month. The new mall which commenced operations recently continued to attract demand. Coverstory in Suburbs Reliance Trends and Digital in Prime South The Mumbai residential market recorded a slight fall in the new launches in July over previous month. The overall demand also fell due to poor market sentiments. The capital values remained stable in July. New : Lodha Codename Seaview at Walkeshwar Palm Rose at Andheri Policy/ Infrastructure Pre-development work on the Rs.16,000 crore Navi Mumbai airport began in June It began constructing temporary roads from the hillock to the reclamation site and started preparations for hill cutting. ft) Lower Parel ,500-22,000 BKC ,500-34,000 Andheri - Kurla Road ,000-16,000 Goregaon-Malad ,500-12,500 Wagle Estate ,200-6,900 ft) Lower Parel ,000-32,300 Malad ,500-19,000 Ghatkopar ,100-18,300 Mulund ,500-15,500 Thane ,000-14,500 Navi Mumbai ,000-13,000 Lower Parel (INR per month for a 1,000 sq ft 65,000-1,10,000 ft) 25,000 40,000 Wadala 36,000-60,000 13,500 23,000 Andheri 32,000-55,000 12,500 21,500 Ghatkopar 30,000-46,000 11,500 17,000 Ghodbunder Road 12,000 25, ,500 Kharghar 10,000 18,000 6,000 9,000 / () / s () Stable Fall Falling

11 Pune The demand for office space remained stable during the month. Few large office projects currently at initial stages of construction are now available for pre-commitment for occupiers. WNS leased in SP Infocity, Fursungi. Jade Global leased in Nyati Tech Park, Wadgaonsheri ft per month) ft) Hadapsar ,000-11,000 Kharadi ,500-11,000 Hinjewadi ,500 8,000 Viman Nagar ,000 11,000 SB Road ,000 15,000 Leasing activity in malls remained stable. The Pavilion, located on SB road is likely to open for business in the next few months. Brand factory and Reliance Trends leased on Singhad Road High-street ft per month) ft) MG Road ,000 30,000 Bund Garden Road ,000-28,000 FC Road ,000-30,000 JM Road ,000-30,000 for the residential properties remained stable. Select new launches witnessed healthy sales during the month. New launches: Savvy Homes by Saarrthi Group and Xrbia Balewadi by Xrbia are currently at pre launch stage and likely to hit the market in the next few months. Policy/ Infrastructure Pune Metro rail project will be on track, beginning with a km stretch between the Pimpri- Chinchwad Municipal Corporation (PCMC) building and Range Hills. (Source: Pune Mirror) DP Road ,000 27,000 SB Road ,000-28,000 (INR per month for a 1,000 sq ft ft) Wakad 14,000 18,000 5,800 7,500 Hinjewadi 9,000 11,000 4,800 6,800 Kharadi 15,000 19,000 6,000 7,500 Hadapsar 16,000 21,000 6,000 8,500 Undri 8,000 13,000 4,000 5,500 Pimri-Chinchwad 12,000 18,000 4,500 6,500 / () / s () Stable Fall Falling

Pulse. Market Highlights SEPTEMBER Get city Pulse by clicking below. Monthly Real Estate Monitor

Pulse. Market Highlights SEPTEMBER Get city Pulse by clicking below. Monthly Real Estate Monitor Market Highlights SEPTEMBER 2017 Office space demand continued to improve across most cities Get city Pulse by clicking below Retail space demand improved in Bangalore, Chennai, Kolkata and Mumbai Residential