Market Highlight JUNE 2017 Office pace demand continued to improve acro mot citie Get city Pule by clicking below Retail pace demand improved in Bangalore, Chennai, Kolkata and Mumbai Reidential demand remained muted in mot citie
Job Loe to Impact Reidential Property in IT Citie With job loe looming large for thoe employed in the IT indutry, demand for reidential realty acro Indian IT hub of Bangalore, Hyderabad, Pune, and alo Navi Mumbai in Mumbai and Noida in NCR could be impacted. Among citie, Bangalore and Pune both rely heavily on IT companie for not only job creation but alo to drive office and reidential real etate demand. A a reult, thee real etate market face the maximum rik from an IT meltdown. According to indutry bodie, India IT and BPO ector employ cloe to four million people in over 16,000 companie and the middle management i at maximum rik of job lo in thee time of diruption, increaed automation and artificial intelligence. Profeional aged 30 year and above, typically earn anywhere between 20 to 60 lakh per annum, and form an average of 17% of the population acro leading economic centre of Bangalore, Mumbai, Delhi, Hyderabad, Pune, and Chennai. According to Indicu data, thi hare of population for Bangalore i around 19%, or over two lakh people, in abolute term. For real etate developer here, thee mid-level manager are an important et. Over the year, they have not only et aide huge aving to make down-payment for a houe purchae, but alo their choice of home ha inclined more toward mid-premium houing project, a category that i both lucrative and in demand at the moment. With thi bracket of conumer coming under eriou rik of a job lo, there i a poibility that recovery of reidential ector in the mid-premium category will be delayed. If the current job market cenario continue for a long time, it could quite poibly have a negative impact on reidential demand, epecially in the mid-premium egment. Affordable and mid-egment home, however, could ee momentum, thank to a trong puh by the government, low interet rate and the current lackening of price. Shubhranhu Pani, Managing Director Strategic Conulting, JLL India To read more, pleae refer to following link: http://jllapite.com/real-etate-compa/2017/05/job-loereidential-property/ Market Sentiment Deal of the month Think About it!! The Telangana government ha propoed to et up a Life Science Infratructure Fund with a corpu of INR 1,000 crore, aid to be a firt-of-itkind in the country. The fund will be ued to create a modular plug-and-play pecialied infratructure for pharmaceutical, biotechnology and medical device indutry. Invetment entiment improving Green Wall Legend: Market Sentiment Next CPPIB expand India realty bet with $1.2 bn IndoSpace JV. The RERA came into force in only 13 tate and Union Territorie on 1 May. The Minitry of Houing and Urban Poverty Alleviation (HUPA) had lat year notified the rule for five Union Territorie, while the Urban Development Minitry came out with uch rule for the National Capital Region of Delhi. Policy mandate energy efficient building in India tate. All new contruction in Maharahtra, India, will have to be ecofriendly and comply with the energyefficiency regulation Favourable Neutral Unfavourable
Weather Map Citie Office Rental Value Retail Rental Value Reident ial Capital Value AHMEDABAD DELHI MUMBAI DELHI PUNE BANGALORE AHMEDABAD KOLKATA CHENNAI MUMBAI PUNE HYDERABAD HYDERABAD KOLKATA Legend Growing Stabilie Stagnate Falling BANGALORE CHENNAI For more information about our reearch, contact Ahutoh Limaye National Director, Reearch and REIS +91 98211 07054 ahutoh.limaye@ap.jll.com Suhma Vemuri Analyt, Reearch and REIS +91 9860178764 uhma.vemuri@ap.jll.com Reearch Dynamic 2016 Pule report from JLL are frequent update on real etate market dynamic. www.jll.co.in
Ahmedabad Policy/ Infratructure tranaction activity wa recorded in Ahmedabad Office market during May. The demand wa een in SBD ubmarket. Companie from the Media and Electronic good were the major occupier. Zee Media and Legrand leaing in SBD ubmarket Select mixed ue development located on SG highway aw retail pace being taken up from hyper tore and upermarket. During the month, majority of retail tranaction were in high treet pace. Wetide in Suburb During the month, a direct impact of demonetiation continued on Ahmedabad reidential market. Number of new launche reduced. During the month, reidential ale were lower. Unold inventory increaed in the project in and around SG Highway. The National Stock Exchange (NSE) commenced trading at Gift City - an international financial ervice centre (IFSC) that offer tax op to invetor. The move come five month after rival BSE went live with it operation in the pecial economic zone (SEZ). Prahlad Nagar 40-50 6000-7500 S G Highway 40-50 6000-7500 Ahram Road 38 45 5500 6500 Navarangpura 40 45 5500 6500 Koba 22 35 4000 5000 CG Road 100-125 16000-18000 SG Highway 80-110 11000-13000 Ahram Road 110-130 14000-16000 Chandkheda-Motera 60 80 9000-12000 Prahladnagar 70-120 18000-22000 (INR per month for a 1,000 q ft 2BHK Naroda 4000-6000 2200-2500 Gota 5000-8000 2500-2800 Navrangpura 15000-20000 6000-7000 SG Highway 10000-15000 5500-7500 Satellite 12000-15000 4000-6000 South Bopal 8000-12000 3000-4000 / () / () Increaing Increae Stable Fall Falling
Bangalore Leae were table over the month. Metro completion in Kanakapura Road drove demand of metro connected area, like MG Road, JP Nagar and few other proximity micro market. CA India leaed pace at Old Airport Road Mobileiron at Outer Ring Road Retail tore leaing continued at ame pace like the lat month. Nalli leaed pace at Mallehwaram Cult leaed pace at Whitefield Reliance uper and Reliance trend leaed pace at Banawadi. Eat Bangalore being a trong corridor for office, continued to be healthy in generating launche over the month. Key DNR Caablanca at Mahadevapura Ari Green Hill at Old Madra Road SMR Vinay Etella at Yelahanka Policy/ Infratructure The Metro tretch which i between Sampige Road- Yelachenahalli i waiting for flag off. A inpection of afety check ha been completed o far during the week and now waiting for the final report. With the launch, the 42 km Phae I network of Namma Metro will be fully operational. Rental Value (INR per q ft per CBD 90 130 12,000 22,000 Old Airport Road 95-110 9,000 15,000 Outer Ring Road (Eatern) 65-80 7,000-9,000 Old Madra Road 55 75 6,000 8,500 Whitefield 35-45 3,800-6,000 Electronic City 34 40 3,500 4,500 Koramangala 160 200 15,000 18,000 Indiranagar 180-250 16,000 30,000 New BEL Road 100-130 10,000 15,000 Commercial Street 250-350 25,000 40,000 Jayanagar 200 250 20,000 30,000 (INR per month for a 1,000 q ft 2BHK Old Madra Road 15000-25000 4500-6500 Indiranagar 22000-35000 12000-17000 Bellary Road 12,000-18,000 4,900-7,600 Hour 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 Myore Road 9,000-13,000 3,000-5,500 / () / () Increaing Increae Stable Fall Falling
Chennai Occupier preference for OMR continue with OMR-Pot Toll belt gaining ubtantial traction in term of enquirie. High occupier interet in premium quality upply in Chennai' office ector. per q ft per Mount Road 60-85 9,000-16,500 RK Salai 65-90 10,000-15,000 Well Fargo at Thoraipakkam Tata communication at Kandanchavadi. Pre-toll OMR 40-90 5,000-6,500 Pot-toll OMR 35-50 3,000-6,000 Guindy 45-65 6,500-9,000 Apparel, acceorie and electronic retailer drove demand for pace in main treet. per q ft per Ritu Kumar at Adyar Shah Electronic at Medavakkam Mont Blanc at Expre Avenue T. Nagar 120-180 12,000-15,000 Nungambakkam 130-150 13,000-16,000 Velachery 90-125 10,000-12,000 Pre-toll OMR 80-100 8,000-11,000 There wa a lull in the reidential real etate market primarily owing to retriction in carrying cah and ripple in political ituation in the city. New : Newry Celio at Avadi Bloom at Thirumudivakkam Policy/Infratructure Corporation budget will ee infratructure puh, but no policy change baed on the Greater Corporation budget for 2017-18. Anna Nagar 120-150 11,000-13,000 LB Road (Adyar) 100-140 10,500-13,500 per month for a 1,000 q ft 2BHK 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 / () / () Increaing Increae Stable Fall Falling
Delhi NCR level continue to tay healthy with quality vacancy being preferred by occupier. driven by IT/ITeS, BFSI and wellknown corporate firm Citibank, WHO and Facebook in CBD, Accenture in Aerocity-SBD, UHG in DLF Cybercity-Gurgaon New Completion: No completion during the quarter Barakhamba Road 140 340 28,000 35,000 Jaola 100-110 15,000 18,000 DLF Cybercity 105 120 NA MG Road 90-120 14,5000 17,500 Golf Coure Road 75-150 12,500 17,000 Leaing activity remain impacted due to lack of vacant pace in uperior mall with mot wellknown brand preferring thee elect mall only. Decathlon in Faridabad and Skecher in Ghaziabad New Completion: RED Mall in Ghaziabad and M3M Urbana in Gurgaon Sale do not how much revival and launche remain low with developer aiming to complete pending project or enure compliance with the onet of RERA. Price remain under preure with dicount and price cut widely available. New : Sobha City Apartment in Gurgaon Policy/ Infratructure The econd phae of the Mater Plan 2031 of the Yamuna Expreway Indutrial Development Authority (YEIDA) approved by the Uttar Pradeh government and will have two new townhip, which will comprie a dedicated indutrial area and a heritage city to promote tourim. South Delhi 200 400 26,000 40,000 Wet and North Delhi 140 230 15,000 23,000 Gurgaon MG Road 140 270 17,500 23,000 Ret of Gurgaon 60 100 8,000 14,000 Noida 130 220 14,000 25,000 Ghaziabad 90 150 10,500 16,000 (INR per month for a 1,000 q ft 2BHK Golf Coure Road 27,000 32,000 13,000 15,000 Sohna Road 17,000 20,000 5,800 7,200 Golf Coure Extenion Road 19,000 22,000 8,000 10,000 Dwarka Expreway NA 5,000 7,500 Noida Greater Noida Expreway 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 / () / () Increaing Increae Stable Fall Falling
Hyderabad Hyderabad market remained healthy with everal enquirie. for quality pace continued to drive vacancy level lower. Commvault at Hitec City MXM at KPHB CA India at Old Airport Road. Retail market remained dull thi month. We expect ome traction in the coming month on back of good upply Unlimited at Attapur Woodland and Tanihq at A S Rao Nagar Pantaloon at Himayat Nagar The reidential market witneed average demand from buyer a the requirement i not matching with the upply. New : Dream India project at Shamhabad Policy/Infratructure Mega infratructure project planned for Hyderabad uch a kyway, multi-grade eparator, multi-level flyover and upenion bridge are in trouble a the BRICS Bank i yet to anction the loan. per q ft per Begumpet 45-52 5,500-6,500 Banjara Hill 45-55 7,000-8,000 Hitec City 48-60 6,000-7,000 Gachibowli 45-55 5,500-6,000 Uppal 30-35 4,500-5,500 per q ft per Banjara Hill-Jubilee Hill 140-160 13,500-16,000 Secunderabad 120-130 12,000-13,000 Hitec City 120-140 12,000-14,000 Kukatpally 100-115 10,000-11,500 Himayatnagar 150-170 15,000-17,000 per month for a 1,000 q ft 2BHK Banjara Hill 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 / () / () Increaing Increae Stable Fall Falling
Kolkata Policy/Infratructure There ha been a gradual increae in the demand for office pace in the month of May for large to medium ized office pace. Buine centre and coworking pace continue to witne demand. Office pace tranaction have alo increaed with major tranaction being: Tech Mahindra at Srijan Tech Park, Salt Lake for retail pace both in mall and high treet ha been increaing. Tranaction in the high treet have been recorded within the city and the uburb wherein pace have been motly taken up by hypermarket and apparel brand. Some major tranaction: Spencer at Airport City, Dum Dum Fbb at Hatibagan Enquirie from end uer and invetor have been teady in the month of May though the number of ale/tranaction both in the primary and econdary reidential market have been low. have been limited with the only launch in thi month being: The 1 on Raja Ram Mohan Roy Road, Tollygunge The Wet Bengal Government ha decided to allow preent and former government employee, reiding in government houing etate, to purchae flat by paying an amount fixed by the tate within 180 day of government fixing the price. per q ft per Park Street 90-100 13,000-20,000 Topia 65-75 9,000-12,000 Kaba 70-75 8,000-11,000 Salt Lake Sector V 32-45 3,500-4,500 New Town and Rajarhat 30-40 3,200-4,100 per q ft per Elgin Road 300-350 24,000-28,000 Park Street (high treet) 325-375 25,000-31,000 Prince Anwar Shah Road 150-200 15,000-18,000 Salt Lake 185-225 15,000-20,000 New Town and Rajarhat 60-80 6,500-8,000 Gariahat (high treet) 200-250 16,000-22,000 per month for a 1,000 q ft 2BHK Alipore N.A 15,000-23,000 Prince Anwar Shah Road 20,000-35,000 6,000-12,000 EM Bypa (Topia) 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 / () / () Increaing Increae Stable Fall Falling
Mumbai Mumbai office market witneed moderate tranaction during May. SBD North emerged a the mot active ubmarket, large ized office tranaction were executed. Occupier were een relocating a well a conolidating office. Bureau Verita in SBD North leaing wa oberved in the month. The mall which commenced operation recently ha received good traction from retailer. Retailer in the apparel and Food & Beverage categorie were active during the month. Covertory in Suburb Xico in Prime South A MahaRERA came into force from 1 t May 2017, Mumbai reidential market aw reduced upply and demand during the month. The capital value were table in month of May. New : Omkar Signet at Malad Rutomjee Azziano Iona at Thane Phae I of Q Reidence at Ghanoli Policy/ Infratructure The mot awaited Maharahtra Real Etate Regulatory Authority (MahaRERA) come into action form 1t may 2017 Mumbai' flaghip infratructure project, the INR 12,000 crore toll-free coatal road, ha got final environmental clearance from the Centre Lower Parel 165-210 17,500-22,000 BKC 230 320 27,500-34,000 Andheri - Kurla Road 100-150 10,000-16,000 Goregaon-Malad 85-135 9,500-12,500 Wagle Etate 50-65 5,200-6,900 Lower Parel 260-390 23,000-32,300 Malad 130-200 12,500-19,000 Ghatkopar 130-220 11,100-18,300 Mulund 100-190 10,500-15,500 Thane 100-150 8,000-14,500 Navi Mumbai 95-140 8,000-13,000 Lower Parel (INR per month for a 1,000 q ft 2BHK 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 25,000 6.000 9,500 Kharghar 10,000 18,000 6,000 9,000 / () / () Increaing Increae Stable Fall Falling
Pune The demand for office pace remained table during the month. Few large office project currently at initial tage of contruction are now available for pre-commitment for occupier. Opcito leaed in Go Square, Wakad. Khed City leaed in Amar Avinah Corporate Plaza, Bund Garden Road Hadapar 55-70 6,500-9,000 Kharadi 55-70 6,500-9,500 Hinjewadi 40-48 5,000 7,000 Viman Nagar 55 75 7,000 11,000 SB Road 70 85 7,000 12,000 Leaing activity in mall remained table. The Pavilion, located on SB road i likely to open for buine in the next few month. Brand factory i likely to open for buine on Solapur Road in the next 2-3 month. MG Road 160-200 22,000 30,000 Bund Garden Road 100-120 20,000-25,000 FC Road 150-200 25,000-30,000 JM Road 150-190 25,000-30,000 for the reidential propertie remained table. Select new launche witneed healthy ale during the month. New launche: Avencia by Gagan Developer and Xrbia Balewadi by Xrbia are currently at pre launch tage and likely to hit the market in the next few month. Policy/ Infratructure The actual work on the Pune Metro i expected to begin from May, Ramnath Subramaniam, executive officer, trategic planning for MAHA Metro Pune, aid at the Pune Metro Samvaad eion organied by MAHA Metro. (Source: TOI) DP Road 100-120 18,000 26,000 SB Road 90-110 18,000-25,000 (INR per month for a 1,000 q ft 2BHK Wakad 14,000 18,000 5,500 7,500 Hinjewadi 9,000 11,000 4,800 6,800 Kharadi 15,000 19,000 6,000 7,500 Hadapar 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 / () / () Increaing Increae Stable Fall Falling