Pulse. Market Highlights OCTOBER Get city Pulse by clicking below. Monthly Real Estate Monitor November 2014

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Ezra Hudson
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1 Market Highlights OCTOBER 2014 Office space leasing activity remained upbeat across cities Get city Pulse by clicking below remained stable across all cities except for Delhi. remained stable except for Delhi Mumbai and Pune

Ahmedabad A rising star Ahmedabad's real estate market has witnessed a rapid development as compared with other cities of India mostly driven by the high rate of industrial growth.

The favourable factors of safety, security and good infrastructure make it a desirable residential and business destination.

The current residential real estate market in Ahmedabad is diverse. It has residential units starting from as low as INR 0.

2 Ahmedabad A rising star Ahmedabad's real estate market has witnessed a rapid development as compared with other cities of India mostly driven by the high rate of industrial growth. The city is rich in textile, pharmaceutical and chemical industries and is poised to be an automotive manufacturing hub of India. The favourable factors of safety, security and good infrastructure make it a desirable residential and business destination. The quality infrastructure and highly competitive real estate cost along with well administration of law and order make Ahmedabad a desirable residential and business destination. The current residential real estate market in Ahmedabad is diverse. It has residential units starting from as low as INR 0.5 million in affordable category and it goes up to as high as INR 50 million in ultra- luxury category. Added to this Ahmedabad has both mall and high street retail developments with presence of key retail brands such as Reliance, Future Group, Shopper s stop etc. Meanwhile Prahaladnagar and Satellite area have emerged as the new office hub of Ahmedabad. Along with all the above the Gujarat International Finance Tech City (GIFT) an 886 acres development near Ahmedabad is planned to be developed as a smart city with high quality infrastructure. Ahmedabad has quality infrastructure with India s most successfully running Bus Rapid Transit System (BRTS). This project contributed towards the rise of real estate prices at a few pockets on the outskirts of the city. There is a plan to increase FSI and have a Transit Oriented Development along the BRTS corridor. These will further boost the economic and allied activity in Ahmedabad. The city has Sabarmati Riverfront project which plans to provide large open spaces for public use. In addition, there is a proposal to connect Gandhinagar with Ahmedabad using the metro system. This is expected to rise the real estate prices along certain sections of the metro corridor between Ahmedabad and Gandhinagar. Moreover large-scale industrial developments at Sanand and Bechraji (near Ahmedabad), are planned to be developed as an automobile manufacturing hub in India. The government has also taken initiative to develop affordable housing which will not only check the slum growth in the city but also provide employment opportunities. With relatively low costs compared with other large cities in India coupled with the proactive development approach of the government and local authorities, Ahmedabad is poised to grow at a faster pace, providing ample opportunities in the real estate sector in near future. Realestonomics Market Sentiment Deal of the month What s new!! The Foreign Direct Investment (FDI) guidelines for construction sector has been eased to attract investments in October. The new rules, proposed include - Reduction of the built-up area of the project to 20,000 sq mts from 50,000 sq mts - The minimum capital requirement has to be reduced to USD 5 million from USD10 million earlier. Real estate industry hailed this decision as it will help cash-starved developers raise significant amount of foreign funds and also complete the projects stuck due to lack of funds Investment sentiment strengthens with new policies being announced Flipkart has closed India's largest office space leasing transaction ever in October by leasing 3 million sq ft of built to suit campus in Bangalore with Embassy group. Four hitech satallite towns are planned to be developed along the 302 Kms Lucknow-Agra Expressway project. The expressway would pass through 10 districts including Firozabad, Kannauj, Etawah, Mainpuri, Auraiya, Kanpur Nagar, Unnao and Hardoi. Green Wall Coimbatore city corporation has planned to increase green cover in the city by using 25 acres of vacant lands of closed mills. They have received approval from the National Textile Corporation Limited (NTCL) for the same. 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 Head, Research and REIS Trivita Roy Assistant Vice President, Research Research Dynamics 2014 Pulse reports from JLL are frequent updates on real estate market dynamics.

Ahmedabad The office space demand in Ahmedabad rose notably during the month of October.

Select companies from BFSI and manufacturing executed transactions.

Select fashion brands & QSR preferred spaces on high streets to increases the footprints.

Affordable projects in the outskirts of the city witnessed notable demand.

Project. The first phase is likely to cover 35.96 km.

4 Ahmedabad The office space demand in Ahmedabad rose notably during the month of October. Select pockets such as Prahlad Nagar and S G Highway showed notable traction. Select companies from BFSI and manufacturing executed transactions. Mizuho Bank leased space in SBD Ahmedabad retail market witnessed notable transaction activity in the month of October. Select fashion brands & QSR preferred spaces on high streets to increases the footprints. A noteworthy traction was recorded in the Ahmedabad residential market. Affordable projects in the outskirts of the city witnessed notable demand. New : Yash Arien in Memnagar Aryan Gloria in South Bopal The Central Government has given its approval to the Ahmedabad Metro Project. The first phase is likely to cover km. Prahlad Nagar ,000 7,000 S G Highway ,000 7,000 Ashram Road ,500 6,500 Navarangpura ,500 6,500 Koba ,000 5,000 CG Road ,000 18,000 SG Highway ,000 13,000 Ashram Road ,000 16,000 Chandkheda ,000 12,000 Koba ,000 10,000 Naroda 4,000 6,000 2,200 2,500 Gota 5,000 8,000 2,500 2,800 Navrangpura 15,000 20,000 6,000 7,000 SG Highway 10,000 15,000 5,500 7,500 Satellite 12,000 15,000 4,000 6,000 South Bopal 8,000 12,000 3,000 4,000 / () / s ()

5 Bangalore Corporate expansion continued in the city while the market witnessed completion of The Address, Prestige Excelsior and Prestige Technopolis. The scarcity of space is likely to create upward pressure on rents Flipkart, Sonus Networks, Sapient and Snapdeal, all in SBD TCS in Whitefield CBD ,000 22,000 Old Airport Road ,000 12,000 Outer Ring Road (Eastern) ,500 7,500 Old Madras Road ,000-7,000 Electronic City ,800 3,500 No new policy was announced in October. Bangalore s retail market continued to witness improved demand. Rents increased marginally across all submarkets. Inmark on Commercial Street Sarafina in Koramangala Banjara in Indiranagar Sub-markets across the city witnessed marginal improvement in residential demand. New : Golden Gate Presidential Towers in Yeshwanthpur Pride Enchanta on Mysore Road Spectra Palm Woods in Whitefield Nitesh Chelsea on Hosur Road The Tree on Tumkur Road 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 15,000 25,000 5,000 7,000 Indiranagar 20,000 30,000 10,000 25,000 Bellary Road 12,000 18,000 4,500 9,000 Hosur Road 10,000 14,000 3,000 6,500 Whitefield 18,000 25,000 5,000 8,000 Tumkur Road 8,000 12, ,500 Kanakapura Road 8,000 12,000 3,200 6,500 Mysore Road 8,000 10,000 3,000 4,000 / () / s ()

6 Chennai Office absorption remained steady. Office occupiers were attracted towards CBD and SBD, while limited leasing activity was witnessed in the peripheral sub-markets. Encore IT Services & Oil tech in Guindy CMA CGM & Star Union Dai-ichi in CBD sub-market Mount Road ,000-15,000 RK Salai ,000-15,000 Pre-toll OMR ,000-6,500 Post-toll OMR ,500-5,000 Guindy ,500-9,000 for quality high street properties remained stable, while limited vacancy in quality malls restricted the leasing activity in the malls. Saravana Store opened a 0.15 million sq ft showroom in Chrompet. T. Nagar ,000-15,000 Nungambakkam ,000-16,000 Velachery ,000-12,000 Pre-toll OMR ,000-11,000 Anna Nagar ,000-13,000 Lukewarm demand coupled with slow approval processes continued to pressure residential supply during the month. Capital values and rents remained stagnated amid high inventory levels. New Four Greens in Oragadam Highways department accelerated the construction of the flyover at Moolakadai junction in North Chennai. Now the four-lane flyover is expected to be completed by March Chennai Metro Rail Limited (CMRL) decided to call for tenders for the design of Metro stations in the phase-i extension from Washermanpet to Wimco Nagar. LB Road (Adyar) ,500-13,500 Adyar 20,000 30,000 15,000-22,000 Medavakkam 7,000-14,000 3,750-5,500 Tambaram 6,000-12,000 3,500-4,500 Anna Nagar 15,000 25,000 9,000-15,000 Porur 5,000-10,000 4,000-6,200 Sholinganallur 9,000-12,000 4,250-5,800 / () / s ()

7 Delhi NCR remained healthy with relocation and consolidation along with fresh expansion activity being visible in the office markets. TCG Hamilton in Sohna Road Dentsu Advertising in NH-8 Cybercity My Zeal IT Solutions & Tech Ahead in Noida City Barakhamba Road ,000-35,000 Jasola ,000-21,000 DLF Cybercity NA MG Road ,000-19,000 Golf Course Road ,500-15,000 remained slow with some activity seen in under construction malls. Retailers considered looking only at prime operational malls and would reduce store size as well. Alternately, they continued preferring high streets.. Allen Solly & Cobb in Ghaziabad, South Delhi ,000-32,000 West and North Delhi ,000-23,000 Gurgaon-MG Road ,500-23,000 Rest of Gurgaon ,000-14,000 Noida ,000-25,000 Despite prevalent price discounts and attractive payment plans, sales conversions remained slow. With the festive season bringing only marginal cheer, demand would likely to remain within a narrow range. reduced during the past month. New : Accolade by Eldeco in Sohna Golf Links on Sohna Road A 3-lane flyover parallel to the existing one at Rao Tula Ram Marg has been approved for easing traffic congestion in the road linking South Delhi to NH-8 Noida authority approved four-lane underpass on Master Plan Road Number 3 at sector crossing which will make the stretch between Kalindi Kunj and National Highway -24 signal-free. Ghaziabad ,500-16,000 Golf Course Road 26,000-32,000 13,000-19,000 Sohna Road 16,000-20,000 5,800-7,500 Golf Course Extension Road 18,000-22,000 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 Leasing activity continued to remain stable in Hyderabad in October. The limited supply in key submarkets continued to push rents upwards. Open Text and JPMC leased space at Hitec City Birlasoft and Indus Towers leased space at Gachibowli High streets and malls both continued to witness good demand on October. for cash and carry outlets and built to suit options in retail has also seen a rise. Big Bazaar leased space at Gachibowli Reliance Foot Print leased space at City Center Mall and Kompally. Residential sales were stable in October. There were many new launches over the month. Major launches. Aparna Cyber Life by Aparna Constructions launched at Nallagantla TNR Sulakshana by TNR Builders launched at LB Nagar. Srinivasa Heights by SHL Group was launched near Uppal Junction The Hyderabad Metro Rail is likely to be the first metro rail project in India to be solar powered. The roofs of metro stations are likely to be used for fixing solar panels. Begumpet ,500 6,500 Banjara Hills ,500 8,500 Hitec City ,000 6,200 Gachibowli ,000 5,500 Uppal ,000 4,000 Banjara Hills ,000 14,000 Jubilee Hills ,000 16,000 Secunderabad ,000 11,000 Hitec City ,000 13,000 Kukatpally ,000 13,000 Dilsukhnagar ,000 12,000 Banjara Hills 20,000 30,000 7,500 14,000 Begumpet 12,000 20,000 4,000 5,500 Kondapur 10,000 20,000 3,200 5,000 Gachibowli 10,000-18,000 3,500-4,200 Tellapur 8,000 15,000 2,800 3,500 Kukatpally 8,000 15,000 3,500 4,000 Miyapur 8,000 10,000 2,400 3,700 / () / s ()

9 Kolkata Enquiries improved across all the peripheral sub markets of the city. However, SBD continued to remain out of focus for the occupiers. Projects with better facilities continued to be the key behind the market activities. Park Street ,000-20,000 Topsia ,500-10,000 Kasba ,000-11,000 Salt Lake Sector V ,000-4,800 New Town and Rajarhat ,200-4,100 for retail spaces in organised malls remained stable. However, low vacancy in prime malls restricted the number of transactions in the market. Meanwhile prime high streets continued to be at the focal point of retailers. Elgin Road ,000-28,000 Park Street (high street) ,000-31,000 Prince Anwar Shah Road ,000-18,000 Salt Lake , ,000 New Town and Rajarhat ,500-8,000 Residential demand in the city was stable. However, absorption levels remain low amid the availability of the large inventory. The number of launches continued to be stable. New Siddha Eden Lakeview at Bonhooghly, BT Road MBPS Waterview at Malancha near Baruipur In an effort to make Rajarhat - New Town more business-friendly, the 10.5-km Rajarhat Main Arterial Road connecting the airport to Salt Lake Sector V will soon become a Wi-Fi enabled stretch where one would be able to connect to the net while travelling on a car or a bus. The stretch has already been declared as a green corridor. Gariahat (high street) ,000-22,000 Alipore 43,000-52,000 14,000-22,000 Prince Anwar Shah Road 19,000-30,000 7,000-14,000 EM Bypass (Topsia) 15,000-25,000 6,000-10,000 Lake Town 11,000-17,000 3,800-7,500 New Town (AA- I, II & III) 10,000-16,000 3,500-6,000 Rajarhat 8,000 14,000 2,500-4,700 Behala 8,000-14,000 3,000-5,500 / () / s ()

10 Mumbai Mumbai office market witnessed a notable growth in transaction activity. SBD BKC exhibited some signs of demand revival. The submarket was characterised by lease renewals and new entrants taking up spaces. MSD renewing in SBD BKC Synchronuss Technologies SBD North Lower Parel ,000-21,500 BKC ,000-34,000 Andheri ,000-14,600 Goregaon-Malad ,000-11,900 Wagle Estate ,200-6,900 Leasing continued to remain moderately healthy, mostly driven by F&B and edutainment brands. Developers were favouring brands that would help their mall to offer consumers a differential experience. British Brewing Company, Theobroma and Hamley s in Suburbs Despite of festive season, the new launches in the month of October witnessed a marginal fall over the previous month mainly due to developers shifting their focus to reduce the unsold inventory levels. New : One Hiranandani Park at Thane Codename The Centre at Dombivali No new policy or new infrastructure has been introduced in October. 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 60,000-1,10,000 25,000 40,000 Wadala 35,000-55,000 15,000 23,000 Andheri 32,000-55,000 12,500 21,500 Ghatkopar 30,000-45,000 11,500 17,000 Ghodbunder Road 12,000 25, ,500 Kharghar 10,000 18,000 6,000 9,000 / () / s ()

11 Pune for office spaces in Pune remained notably high during the month of October. The SBD submarket witnessed most of the traction. Select BFSI and IT/ITeS companies executed expansions in office buildings with large floor plates. Anchor Electricals in CBD Courion IT in SBD Hadapsar ,500-7,500 Kharadi ,500-6,500 Hinjewadi ,000 5,500 Viman Nagar ,500 7,500 SB Road ,500 8,000 Overall demand remained stable at malls & high streets in Pune. Apparel & fashion brands were the major contributor towards demand. Kawediya Jewellers in Prime City high street Nike in suburbs MG Road ,000 21,000 Bund Garden Road ,000 17,000 FC Road ,000 20,000 JM Road ,000 20,000 DP Road ,000 16,000 continued picking-up in select projects that were newly launched where customers find the pricing attractive. However, under-construction projects continued witnessing subdued demand owing to high prices. New : Lodha Codename Albatross, Skyi Manas Lake and Pinnacle Neelanchal, all at North West Submarket No new policy or new infrastructure has been introduced in October. SB Road ,000-16,000 Wakad 10,000 13,000 4,700 5,700 Hinjewadi 9,000 11,000 4,800 6,500 Kharadi 11,000 15,000 4,800 5,800 Hadapsar 13,000 18,000 5,000 7,500 Undri 8,000 11,000 4,000 5,200 Pimri-Chinchwad 8,000 13,000 4,500 6,000 / () / s ()

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

12 About JLL Jones Lang LaSalle (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. With annual revenue of $4 billion, JLL operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 3.0 billion square feet. Its investment management business, LaSalle Investment Management, has $47.6 billion of real estate assets under management. JLL has over 50 years of experience in Asia Pacific, with over 27,500 employees operating in 80 offices in 15 countries across the region. The firm was named Best Property Consultancy in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and won nine Asia Pacific Awards in the Euromoney Real Estate Awards For further information, please visit our website, 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 6800, 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 named the Best Property Consultancy in India (5 Star Winner) at the International Property Awards Asia Pacific for For further information, please visit For more information about our research, contact Ashutosh Limaye Head, Research and REIS ashutosh.limaye@ap.jll.com Trivita Roy Assistant Vice President, Research trivita.roy@ap.jll.com Research Dynamics 2014 Pulse reports from JLL are frequent updates on real estate market dynamics.

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