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

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1 Market Highlights JUNE 2016 Office space demand continued to increase across most cities Get city Pulse by clicking below Retail space demand improved in Chennai, Hyderabad and Mumbai Residential demand remained stable in all cities

India s Residential Sector Poised for Faster Growth by Q4 2016 India s residential property market has been through turbulent times over the past few years.

Economic Performance: FY 2015-16 saw the Indian economy become the fastest growing in the world with GDP growth of 7.6%.

The Reserve Bank of India (RBI) has cut the key interest rates and decreased the Repo rates since January 2015.

2 India s Residential Sector Poised for Faster Growth by Q India s residential property market has been through turbulent times over the past few years. However, things are looking up now with changes in the economy and various initiatives announced by the government. Economic Performance: FY saw the Indian economy become the fastest growing in the world with GDP growth of 7.6%. This was despite adverse global economic circumstances that put a lot of pressure on earnings, exports and overall development. The Reserve Bank of India (RBI) has cut the key interest rates and decreased the Repo rates since January An increase in the industrial growth rate, stabilisation of crude oil prices and decreased CPI inflation combined with expectations for a good monsoon will likely take the growth of the Indian economy to a healthy rate of %. There are signs of economic revival, along with foreign investment coming in the country. FDI increased in the country by a whopping 37% during FY Real Estate Performance So Far: The real estate sector saw the worst phase in with sales and prices plummeting. High inventory levels, diminished demand and limited liquidity affected new launches. Overall residential sales were down by 2.2% in FY However, a positive twist to this otherwise grim situation was the rise in sales in Q1CY2016 by 9%. The Road Ahead: Trends are beginning to change basis expectations of a good monsoon, a revival in economy, reducing inflation and the fact that residential prices have bottomed out. Also, the improving regulatory environment in the real estate sector and the decrease in interest rates by the RBI, coupled with schemes such as Smart Cities, AMRUT and Housing for All by 2022, are beginning to have a positive influence. The setting up of the Real Estate Regulatory Authority to ensure timebound delivery of projects and more efficient and transparent dealings with developers point towards consumers gaining trust and coming back to investing in the market. A convincing start has been seen in the affordable housing segment, with this category witnessing increased traction on the peripheries of the major cities. Global factors do have an impact, but India s current low inflation rate coupled with low interest rates will induce faster growth in the residential real estate sector. Various additional factors point towards positive sentiment, including the stimulus the recent Union Budget provided, improved funding for the industry and the clearing of roadblocks on REITs. Ashwinder Raj Singh, CEO Residential Services at JLL India For further reading, please refer to following link: Market Sentiment Deal of the month Think About it!! With the latest addition of 13 more cities, the Smart Cities mission has made inroads into 25 states/union Territories in India. The latest list is a good mix of prominent industrial and cosmopolitan cities along with state capitals as well as Tier III and IV cities and bodes well for a holistic approach to developing existing cities as Smart Cities. The geographic spread of the new list also shows encouraging signs of development being focused towards the eastern and northeastern part of the country where infrastructure development is vital, in line with Modi s vision to develop the east. Investment sentiment improving Realty major DLF entered into an amended agreement to sell its 32 screens of DT cinemas to multiplex operator PVR at INR 433 crore. The Real Estate (Regulation and Development) Act, 2016 will come into force on May , starting the process of making operational rules and institutional infrastructure. Green Wall Metro projects are not required to seek environmental clearance from the Central Government and state governments, the environment ministry and Delhi Metro Rail Corporation told the National Green Tribunal. Legend: Market Sentiment Favourable Neutral Unfavourable Next

Weather Map Cities Office Rental Value Retail Rental Value Residential 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 Residential 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 Aritra Das Analyst, Research Research Dynamics 2016 Pulse reports from JLL are frequent updates on real estate market dynamics.

4 Ahmedabad No major policy was announced by the government. Ahmedabad office market witnessed no major transaction during the month. There was notable demand for small office units from occupiers. New Completions: Mondeal Heights became operational in the SBD sub-market. During the month, the Suburbs submarket remained active in contributing retail space demand in the city. Anchor tenants were seen executing the transactions along with the vanilla brands. Pantaloons at Prahaldnagar There was noticeable demand for affordable housing in the residential market. New launches were recorded in suburban areas such as Gota and Bopal. New : Shivalik Park View in South Bopal Prahlad Nagar S G Highway Ashram Road Navarangpura Koba CG Road SG Highway Ashram Road Chandkheda Koba Naroda Gota Navrangpura SG Highway Satellite South Bopal / () / s ()

5 Bangalore The Sarjapur-Marathahalli stretch of the Outer Ring Road is witnessing construction of many new commercial office projects given the supply crunch. Broadridge and CGI leased space at Whitefield Beckman Coulter, Yodlee and Noodle Analytics leased space at ORR and Nvidia leased space at Hebbal Leasing strengthened in malls over the month. Girayas Explorium and Funskool at Malleshwaram Wildcraft and Lee Wrangler at Indira Nagar Biba and GKB at Banaswadi Main Road in the southern suburbs of Bangalore is strengthening as it is preferred by the working population due to good connectivity with commercial hubs. Major : Bren Zen Gardens at Hosa Road Prestige Lakeridge, Purva Bird Of Paradise at Kanakapura Road Ajmera Annex at Electronic City and Habitat Iluminar at Kengeri The Elevated Steel Corridor, which is worth INR 1,350 crore has been approved by the State Government. The six-lane steel flyover will cover a width of 25 m and run to a length of 6.75 km. The signal-free corridor will connect Basaveshwara Circle to Hebbal Flyover via Le Meridian Hotel and Mekhri Circle. The project is likely to commence shortly and will be completed by May CBD ,000 22,000 Old Airport Road ,000 12,000 Outer Ring Road (Eastern) ,500 7,500 Old Madras Road ,000 8,500 Electronic City ,500 4,500 Koramangala ,000 18,000 Indiranagar ,000 18,000 New BEL Road ,000 12,000 Commercial Street ,000 20,000 Jayanagar ,000 18,000 Old Madras Road Indiranagar Bellary Road Hosur Road Whitefield Tumkur Road Kanakapura Road Mysore Road / () / s ()

6 Chennai Given the positive investment scenario there has been unabated demand for office space in the city. Astra Zeneca at Nandambakkam RBL at R K Salai KLS Martin at Anna Nagar 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 There was a good traction of space in malls as well as high streets. GAP at Market City Brown Tree at Thiruvanmiyur Brick House Bistro at Besant Nagar United Colors of Benetton and Arrow at TTK Road T. Nagar ,000 15,000 Nungambakkam ,000 16,000 Velachery ,000 12,000 Pre-toll OMR ,000 11,000 Anna Nagar ,000 13,000 The launches in the residential sector have been slow as a result of elections. Major : Habitat at Siruseri by Appaswamy Real Estate Chennai Port Trust has signed a Memorandum of Understanding with Southern Railway to operationalise the rail traffic movement from Chennai to Walajabad. LB Road (Adyar) ,500 13,500 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 ()

7 Delhi NCR has retained momentum with visibly healthy traction across different occupier categories with a mix of expansion and relocation. TCS in Sector-62, Noida City, Axalta and Apple in Golf Course Road and SBI in the CBD New Completions: Worldmark 3 in the SBD sub-market Barakhamba Road ,000 35,000 Jasola ,000 21,000 DLF Cybercity NA MG Road ,000 19,000 Golf Course Road ,500 15,000 Space take-up limited due to low vacancy rates in prime malls. Decathlon and Spencer s in Gurgaon, Dior in Prime South New Completions: Worldmark 3 South Delhi ,000 40,000 West and North Delhi ,000 23,000 Gurgaon MG Road ,500 23,000 Rest of Gurgaon ,000 14,000 Noida ,000 25,000 remains slow, but low-cost and projects nearing completion are witnessing buyer traction. Major : No launches recorded during the month The floor area ratio (FAR) for residential plots increased in Gurgaon and owners can purchase additional FAR 14 laning of Delhi-UP border and the Dasna section of the Delhi- Meerut Expressway on NH-24 approved by Cabinet Committee on Economic Affairs Ghaziabad ,500 16,000 Golf Course Road 27,000 32,000 13,000 19,000 Sohna Road 17,000 20,000 5,800 7,500 Golf Course Extension Road 19,000 22,000 8,500 11,000 Dwarka Expressway NA 5,500 7,500 Noida Greater Noida Expressway 13,000 15,000 4,300 6,500 Noida City 12,000 14,500 4,700 6,000 Indirapuram 11,000 12,000 4,500 5,300 / () / s ()

8 Hyderabad The Hyderabad market witnessed good traction. Good demand and low availability of quality space pushed rentals in the Western sub-market. Pole to Win and Stratosphere IT services Pvt Ltd. leased space at Kukatpally Red Brick leased space at Hitec City The retail market in the city witnessed robust growth with several transactions in upcoming shopping malls and on high streets. Burger King at Hitec City Brand Factory at Attapur Cinepolis at Uppal Satyam Cineplex at Gachibowli The residential market continued to witness an increase in launches while demand remained stable. Major : Alekhya Palm Woods at Hafeezpet Sumadhura Acropolis at Nanakramguda Ark Terminus Hamptons at Kondapur L&T Hyderabad Metro Rail, a subsidiary of Larsen & Toubro, which is implementing the INR 16,000 crore elevated metro rail project, announced that the work is expected to be delayed by almost 18 months. Begumpet ,500 6,500 Banjara Hills ,000 8,000 Hitec City ,000 7,000 Gachibowli ,500 6,000 Uppal ,500 5,500 Banjara Hills - Jubilee Hills ,500 16,000 Secunderabad ,000 13,000 Hitec City ,000 14,000 Kukatpally ,000 11,500 Himayatnagar ,000 17,000 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 ()

9 Kolkata The market witnessed tepid transaction activity. Most transactions were for small to medium sized floor space. Eagle Burgmann leased space in the SBD sub-market Destimoney, Tyco Fire and Mitsubishi leased space in PBD Park Street ,000 20,000 Topsia ,500 10,000 Kasba ,000 11,000 Salt Lake Sector V ,000 4,800 The market remained stable. While demand remained steady, the availability of quality space determined the movement of transactions. Kalyan Jewellers leased space in Gariahat and Salt Lake Pantaloons and 10 Downing Street at Sector V W, All and Global Desi at Forum Rangoli The residential market remained stable while launches remained steady over the month. Major : Siddha Sky at Tiljala Loudon Star at Loudon Street A Detailed Project Report is being prepared for a road-cum-rail bridge across the Hoogly on Sagar Island for connectivity to the proposed Deep Sea Port facility on the island. It will be built by the National Highways Authority of India at a cost of nearly INR 2,800 crore. New Town and Rajarhat ,200 4,100 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 Alipore 50,000 70,000 15,000 22,000 Prince Anwar Shah Road 20,000 35,000 7,000 14,000 EM Bypass (Topsia) 15,000 25,000 6,000 10,000 Lake Town 10,000 16,000 4,000 7,500 New Town (AA- I, II & III) 9,000 15,000 3,500 6,000 Rajarhat 7,000 14,000 3,000 4,500 Behala 7,000 14,000 3,000 5,500 / () / s ()

10 Mumbai During the month, the Mumbai office market witnessed transactions especially for small office space. Submarkets such as SBD North and Navi Mumbai saw healthy leasing activity. Imarticus Learning in SBD North Sulzer Pumps in Navi Mumbai 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 A new mall became operational in the peripheral suburbs. It comes with good pre-commitment. for quality space remains strong. Skechers, Barbeque Nation and Cotton Culture in the suburbs New Completions: Orion Mall, Panvel The Mumbai residential sector witnessed a slight drop in sales and new launches in May. Developers are concentrating on offloading the previous unsold inventory in underconstruction projects. Major : Amardeep Anutham at Mulund JVM Orchid at Thane Tricity Panache at Seawoods The city s New Development Plan (DP) was presented to the standing committee meeting of the Brihanmumbai Municipal Corporation on 28 May 2016 by the civic administration. Corporators and the public will have a 60-day window to file their objections and suggestions before the DP is sent to a select committee comprising civic and State Government representatives. Lower Parel ,000-32,300 Malad ,500-20,000 Ghatkopar ,100-18,300 Mulund ,500-15,500 Thane ,000-14,500 Navi Mumbai ,000-12,000 Lower Parel 65,000-1,10,000 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 ()

11 Pune for office space in Pune remained stable in May. The city saw noticeable demand in built-to-suit and Grade B properties. Icertis leased space in ICC Tech Park UBS leased space in Commerzone. Hadapsar ,500-9,000 Kharadi ,500-9,500 Hinjewadi ,000 7,000 Viman Nagar ,000 10,000 SB Road ,000 12,000 Leasing activity in malls remained stable. A few select malls witnessed marginal rent appreciation during the month. Pantaloons opened for business on Baner Road MG Road ,000 30,000 Bund Garden Road ,000-25,000 FC Road ,000-30,000 JM Road ,000-30,000 DP Road ,000 26,000 In May, the sales in the Pune residential market remained stable. However, Grade A launches witnessed good demand during the month. New : Amar Serenity launched on Baner- Pashan Road Ganga Fairmont launched in Tathawade The Pune Smart City Development Corporation received INR 283 crore, the first instalment of funds for projects under the Smart Cities Mission, from the Union and State Governments. The Union Government chipped in with INR 186 crore, while the State gave INR 93 crore; INR 4 crore was deducted for administrative charges. SB Road ,000-25,000 Wakad 10,000 13,000 5,000 6,500 Hinjewadi 9,000 11,000 4,800 6,500 Kharadi 11,000 15,000 5,000 7,200 Hadapsar 13,000 18,000 5,500 7,500 Undri 8,000 12,000 4,000 5,500 Pimri-Chinchwad 8,000 15,000 4,500 6,000 / () / s ()

About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in

12 About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit JLL has over 50 years of experience in Asia Pacific, with over 33,000 employees operating in 92 offices in 16 countries across the region. The firm won 15 awards at the International Property Awards Asia Pacific in 2016 and was named number one real estate advisor in Asia at the 2015 Euromoney Real Estate Awards. About JLL India JLL is India s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 8500, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory. The firm was awarded the Property Consultant of the Decade at the 10th CNBC-Awaaz Real Estate Awards 2015 and the Best Property Consultancy in India at the International Property Awards Asia Pacific For further information, please visit For more information about our research, contact Ashutosh Limaye National Director, Research and REIS ashutosh.limaye@ap.jll.com Aritra Das Analyst, Research aritra.das@ap.jll.com Research Dynamics 2016 Pulse reports from JLL are frequent updates on real estate market dynamics.

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

Pulse. Market Highlights April Get city Pulse by clicking below. Monthly Real Estate Monitor Market Highlights April 2016 Office space demand continued to increase across most of the cities Get city Pulse by clicking below Retail space demand continued to improve in all cities barring Ahmedabad,