India Research Property Market Overview Q3 2016

www.colliers.com/india
Colliers Quarterly Q3 3016
India Residential Property
Market Overview
02 November 2016

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Contents
India | Transaction volume set to
improve ............................................3
Mumbai | QOQ increase in launches
indicate a positive outlook .................4
Gurgaon | Sentiment to remain
cautious .............................................6
NOIDA | Developers seeking
alternative funding options .................8
Bengaluru | Steady demand amidst
cautious buyer sentiment .................10
Chennai | End-user demand revival in
the offing .........................................12
Pune | Residential market aims to
comeback ........................................14

INDIA | RESIDENTIAL
02 November 2016
Transaction
volume set to
improve
Surabhi Arora | Senior Associate Director | India
The residential market appears to be coming out of the
cycle of “low confidence, low investment”. Several
factors such as the strong office market that indicate
robust employment scenario, the festive
season and lowering interest rates are likely to
support housing market in coming months. We expect
residential market to witness growth in most cities.
Forecast at a glance
Demand
Demand shall continue to veer towards
the affordable and mid-end segment
establishments
Supply
Supply infusion expected in the form of
new launches due to the upcoming
festive season
Capital Values
Should largely remain stable across
major cities in India
Rental Rate
Likely to remain stable across micro
markets in most cities
Construction
Government initiatives shall start taking
effect and speed up the delayed
projects
Marginal increase in new launches;
select cities witness revival
Number of new residential launches recorded for Q3
2016 in the top six cities in India (Bengaluru, Chennai,
Pune, Mumbai, Noida and Gurgaon) were a little less
than 25,000 units making it about 67,000 so far for the
year 2016. Residential market in the western cities
bounced back and recorded maximum number of
launches in Mumbai and Pune with 28% and 23% share
of the total unit launches in Q3 2016, respectively. They
were followed by Bengaluru (17%), Noida (16%),
Chennai (9%) and Gurgaon (7%). After almost three
quarters, the Gurgaon and Noida residential market
witnessed several new launches this quarter in the wake
of upcoming festive season.
As we entered into the festive season, developers
continued to offer discounts, flexible payment plans and
other incentives such as free parking and gold coins to
promote sales. Although buyers have maintained a
cautious approach, the number of enquiries have
increased amidst improved sentiments owing to RERA
and the upcoming festive season. However, buyer
interest remained towards affordable and mid-end
housing projects and we expect the trend to continue in
subsequent quarters as well.
We are approaching a favourable period for the
residential market in India as the government and
developers are working together to solve the prolonged
issue of inventory overhang. The governments in most
cities are expediting the implemention of RERA. Several
courts have passed rulings in the favour of buyers
enforcing accountability on developers with respect to
delayed possessions in cities like Noida, Gurgaon and
Mumbai. Developers experiencing cash crunch are
looking for alternative methods of funding and private
equity investments to complete delayed developments or
refund buyers. As per our opinion, the India residential
market, which is currently, end user driven has caught
an eye of several institutional investors that are looking
to buy stakes in cities like Noida, Pune and Mumbai. We
can see signs of recovery in the residential market
leading to an assertive scenario for buyers and
developers alike going forward.

MUMBAI | RESIDENTIAL
02 November 2016
QOQ increase in
launches indicate
a positive outlook
Uttara Nilawar | Manager | Mumbai
A marked increase in the number of new launches
denotes a favourable outlook for the Mumbai
residential market. With several redevelopment
projects on the cards, we expect upcoming launches
to fill in the gaps in mid-end housing demand.
Demand
High demand for mid-end affordable
housing should prevail
Supply
Developers who have held off to take
advantage of the festive season shall
launch new projects soon
Capital Values
Overall stable outlook; however, large
ticket sized apartments may witness a
marginal decline
Rental Rate
Rentals for high end properties shall
decline marginally due to restricted
budget of corporates and MNCs
Construction
Several construction projects may get
stalled due to delay in approvals
Number of new launches almost
doubled since last quarter
The Mumbai market witnessed improved sentiments and
increase in the number of new unit launches this quarter.
A quarter-on-quarter (QOQ) increase of around 70%
was observed with a little less than 7,000 units launched,
increasing the total number of units to 17,300 for 2016.
High end and luxury residential developments
constituted almost 70% of the unit launches in suburban
Mumbai. Mid end developments mostly prevailed in Navi
Mumbai where homes are comparatively affordable.
Almost 50-60% of the resale inventory in South Mumbai
remains unsold this quarter despite the decrease in sale
prices.
The Thane market dominated with 41% of share in unit
launches, followed by Western and Central suburbs with
19% of units launched in Goregaon, Andheri, Ghatkopar,
Chembur, and Powai. These locations were followed by
Navi Mumbai (12%), Central Mumbai (7%) and South
Mumbai (2%)
Market Trends
Micro Markets
Capital Values
(INR Per Sq Ft)
QOQ%
Change
YOY%
Change
South Mumbai 47,500 - 68,500 0% -1%
Worli 46,600 - 58,000 0% 0%
Prabhadevi 46,000 - 55,000 0% -1%
Bandra 29,000 - 52,400 -1% 1%
Khar 26,000 - 35600 -1% 1%
Santacruz 24,500 - 29,500 0% 3%
Juhu 27,000 - 32,000 0% 2%
Andheri 19,000 - 22,000 0% -2%
Powai 20,000 - 27,800 0% 4%
Thane 7,000 - 12,000 -5% -
Navi Mumbai –
Prime Areas
9,000 - 20,000 0% -
Navi Mumbai –
Emerging Areas
5,500 - 10,500 7% -
Source: Colliers International India Research
Note: Above values represent indicative selling price for premium
properties in secondary market

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
Reseach
Surabhi.arora@colliers.com
Uttara Nilawar
Manager
Research
Uttara.nilawar@colliers.com
Analogous to the trends across other main cities in India,
the Mumbai market was also plagued with the issue of
unsold inventory. Hence, prices have remained relatively
stable in the Mumbai micro markets since the last few
quarters. However, emerging areas in Navi Mumbai such
as Kharghar, Ulwe, Kamothe and Dronagiri witnessed
appreciation of around 7%. Buyer sentiment is skewing
towards these locations due to their affordability quotient.
Average Capital Value Trends
INR per sq ft
Note: Dotted lines in the chart above represent forecasted values
Average Rental Values
INR per sq ft per month
As land is a scarce resource in suburban Mumbai, the
Maharashtra government has veered its focus towards
redevelopment projects. The Brihanmumbai Municipal
Corporation’s (BMC) Development plan department
has so far sanctioned 7 redevelopment projects in
South Mumbai and 17 projects in Mahim and Dadar.
There has also been talk of opening up no
development zones (NDZ’s) for residential
developments by the state government.
In addition, the housing policy recently approved by the
state government brings forward several lucrative
opportunities for developers, primarily increased Floor
Space Index (FSI) and development of lots instead of
individual buildings. However, it is still uncertain if prices
will be lowered by developers as several costs are yet to
be factored in with respect to redevelopment projects.
Although the Mumbai market is currently user driven,
investor activities are also picking up. Sun AREA
Property Partners, had invested about INR 135 crore
(INR 1.35 billion) in Ekta Tripolis in Goregaon between
2011 and 2013. As per market sources, Sun AREA
recently exited Ekta World’s luxury residential project.
Colliers View
In the wake of the festive season, we are
expecting several new launches by the end of October in
Thane and Central suburbs (Powai and Kanjurmarg).
Secondary sales will be affected as many developers
are offering attractive discounts and flexible payment
plans for under construction projects. Developers have
started implementing norms set by the Real Estate
(Regulation and Development) Act, 2016 such as
calculation of the carpet area as per these norms.
Construction work has finally begun for the much
awaited Navi Mumbai International Airport. However, in
our opinion if the Navi Mumbai International Airport is
stalled further, realty prices may witness a negative
impact in the Navi Mumbai micro markets.
The Mumbai market outlook looks optimistic as a mix of
developments are expected in subsequent quarters.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q32010
Q32011
Q32012
Q32013
Q32014
Q32015
Q32016
Q32017F
Q32018F
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-
PrimeAreas
NaviMumbai-
Emerging…

GURGAON | RESIDENTIAL
02 November 2016
Sentiment to
remain cautious
Parul Bhargawa | Senior Analyst | Gurgaon
Residential sales activities continue to sputter, with a
handful of new launches even during the festive
season. We expect demand should continue to be
driven by end users and remain skewed towards
completed projects at least in the short term. Mid-end
luxury segment products are likely to see more
demand from the growing number of working
executives in the city.
Demand
Demand should remain concentrated in
micro markets with ready supply
Supply
Number of new launches should remain
restricted as developers will focus on
completion of existing projects
Capital Values
Should remain stable across micro
markets due to reduced transaction
volumes
Rental Rate
Should remain stable in most of the
micro markets
Construction
Construction should pick up pace as
heightened consumer activism and
litigation is putting pressure on
developers to deliver projects on time
Investors remain at bay; few new
launches in mid-end segment
In the third quarter of 2016, sales in the primary market
remained weak, despite the start of the festive season.
In view of the reduced demand, the city has witnessed
the launch of about 1,700 new units this quarter, taking
the YTD total to a little over 3,280 units. Most of the new
projects were located in new sectors developing along
Sohna Road and catering to the mid-luxury segment.
These projects include “Azalia” by Supertech Developers
and “Siera 68” by M3M developers both located in sector
68, Sohna Road. AIPL Developers launched its mixed-
use development project in Sector 66 with serviced
apartments on the upper floors. Apart from this, Sobha
Developers also launched the first phase of Sobha City
Dwarka Expressway, which offered 2 and 3 BHK at a
basic selling price in the range of INR 7,955 to 8,400 per
sq ft.
The secondary market gained some traction for ready to
occupy properties. Tulip Infratech offered possession of
Phase 1 of Tulip Violet project located in Sector 69,
Sohna Road. This quarter, a few high value sale
transactions, and corporate lease deals were concluded
in super luxury projects such as DLF Aralias and
Magnolias, which are located along Golf Course Road.
Market Trends
Micro Markets
Capital Values
(INR Per Sq
Ft)
QOQ%
Change
YOY%
Change
Golf Course Road 11,000–36,000 0% 0%
Sohna Road &
Golf Course
Extension
6,000-14,000 5% 9%
DLF Phase 1 11,000-13,000 0% 0%
Sushant Lok 14,000-18,000 -2% 7%
NH-8 10,500-18,000 2% 0%

Sumit Jain
National Director
Avnish Yadav
Avnish.yadav@colliers.com
Authors:
Surabhi Arora
Research
Parul Bhargava
Senior Analyst
Research
Parul.bhargava@colliers.com
With the festive season round the corner, most
developers were offering lucrative payment plans, cash
discounts, and guaranteed possession plans. However,
we noticed that buyer demand is skewed towards ready
properties available at good prices.
INR per sq ft
Capital Values remained largely stagnant in the quarter
in most of the micro markets except Sohna Road, which
has recorded a marginal QOQ escalation of 5%.
However, this significant rise was primarly due to an
increase in the prices of a few recently completed luxury
projects such as Central Park Resorts in this vicinity,
which are demanding above market prices. Rents
remained stable on a QOQ basis in in most of the micro
markets.
This quarter, the Haryana government approved the new
building code which allows purchasable FAR over the
existing limits for residential plots. Apart from this,the
development authority commenced work on the 37C-
37D road by demolishing seven buildings coming in its
way. This move will augment connectivity of this area
with other parts of Gurgaon via Gurgaon Pataudi Road
and will be a huge relief to many residential projects in
the area.
Colliers View
The festive season and attractive payment plans
remained ineffective in bringing any cheer to Gurgaon
residential market and new project launches have
declined significantly. Considering the lesser number of
projects in the pre-launch stage, new unit launches are
likely to further decline in the next quarter. Capital values
will remain under pressure in emerging locations like
New Gurgaon, SPR and Dwarka Expressway while Golf
Course Road, DLF Phase I, Sohna Road and other
micro markets are likely to remain stable in short term.
Going forward, we expect the concept of mixed-use
developments and serviced apartments to gain traction,
as there is high demand for such residences from
executives working in multinational corporations and
expatriates.
0
6,000
12,000
18,000
24,000
30,000
36,000
Q32010
Q32011
Q32012
Q32013
Q32014
Q32015
Q32016
Q32017F
Q32018F
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

NOIDA | RESIDENTIAL
02 November 2016
Developers
seeking alternative
funding options
Parul Bhargawa | Senior Analyst | Gurgaon
We expect sales in secondary market in Noida to pick
up in the coming quarters as a number of projects are
on the verge of completion in the next six months. In
the primary market, demand shall remain skewed
towards projects of reputed developers with track
record of delivering projects on time.
Demand
Should pick up in the upcoming festive
season underpinned by lucrative offers
and innovative payment plans
Supply
Number of new launches should come
up primarily in mid and luxury segment
by a few national level builders
Capital Values
Shall remain stagnant in most of the
micro markets in the short term
Rental Rate
Shall remain stable in most of the micro
markets due to increase in supply
Construction
Should pick up pace as consumer
activism and government intervention
are pushing developers to seek
alternative financing modes and deliver
delayed projects.
New launches remain concentrated
at Expressway and greater Noida
The residential market showed early signs of revival with
approximately 4,000 new unit launches in Q3 2016. Most
of these projects were launched in newly developing
sectors along Noida Expressway and greater NOIDA.
Despite the fact that most of the demand is in mid-end
segment, this quarter we witnessed launch of a luxury
project in Sector 124 located along Noida-Greater Noida
Expressway. The project was launched by ATS and
Logix Developers that offer 4 and 6 BHK apartments at a
basic selling price of INR 12,000 per sq ft. This makes it
the most expensive project launched in this year so far.
Besides this, Antriksh Group launched a residential
project in Sector 150 offering villas, 2, 3 and 4 BHK
units. Beside this, a couple of projects were launched in
greater Noida West and Yamuna Expressway.
In order to lure buyers during the festive season
developers offered attractive subvention schemes,
discounts, payment plans such as no EMI until
possession, free parking, and gold coins. However,
buyers remained cautious in their approach and were
selecting projects from developers with proven track
record of project deliveries and quality.
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
Research
Parul Bhargava
Senior Analyst
Research
Parul.bhargava@colliers.com
Rental and Capital Values have remained largely stagnant
in the quarter in most of the micro markets. Established
sectors along Noida expressway witnessed about 6%
decline due to increased supply of completed units in
nearby vicinity. This has also put a pressure on rents in
these sectors.
INR per sq ft
Amid heightened consumer activism on the issue of
delay in possession of apartments, a lot of builders were
seeking alternative source of funds from Non Banking
Finance Companies (NBFCs) and private equity players
and entered into strategic alliances with them. This
quarter, Logix Group reported to raise about INR 400
crore (INR 4 billion) from Apollo Global Management in a
structured finance transaction to complete the
construction of its residential projects. Piramal Fund
invested INR 200 crore (INR 2 billion) in already delayed
luxurious residential project Prateek Edifice in Sector
107. Also, Saha Group raised INR 160 crore (INR 1.6
billion) from Kautilya Finance to expedite the
construction of its ongoing projects and buy a land
parcel in Noida.
On the infrastructure front, NH-24 underpass connecting
Noida Sector 62, 63 with Indirapuram got completed.
This will ease traffic movement and enhance
connectivity of areas in Noida, Delhi and Ghaziabad.
This quarter, Greater Noida Development Authority
asked the developers to open project escrow accounts
to keep a check on diversion of funds. Noida Authority
and Yamuna Expressway Authority are working on a
comprehensive policy aimed at reviving stalled and sick
projects. The UP government plans to form the Real
Estate Regulatory Authority for the state by the end of
November. Government intervention and court orders in
favor of buyers will restore the much needed faith in the
sector reeling under a slowdown since last three years.
Colliers View
We expect bulk of new launches to remain concentrated
in the newly developing sectors along Noida- Greater
Noida Expressway. Noida Expressway will continue to
be dominated by luxury and mid luxury residential
projects. Huge pile up of inventory both in primary and
secondary markets should provide plenty of options and
discounts in the festive season for buyers. We expect
more private equity funding into the sector especially in
distressed projects as developers are in a rush to
complete stalled projects to avoid punitive clauses of
Real Estate (Regulation and Development) Act.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q32010
Q32011
Q32012
Q32013
Q32014
Q32015
Q32016
Q32017F
Q32018F
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

BENGALURU | RESIDENTIAL
02 November 2016
Steady demand
amidst cautious
buyer sentiment
Divya Grover | Senior Manager | Bengaluru
Despite momentary civil unrest and the municipal
corporation’s drive to regularise construction, we are
hopeful that the mid-end segment should continue to
drive sales as the festive season approaches with
developers offering various freebies and attractive
payment plans amidst a soft home loan interest rates
environment.
Demand
Should improve as builders are
introducing lucrative deals to lure fence
sitters
Supply
Oversupply situation in the primary
market to continue in the upcoming
quarter
Capital Values
Should rationalize across micro
markets barring far off northern
peripherals which may see slight
appreciation
Rental Rate
Likely to hold steady across micro
markets
New project launches plunge
During Q3 2016, Bengaluru noted nearly 4,300 new unit
launches, totalling to about 21,800 new units YTD. The
city witnessed about 63% QOQ decrease in new
launches. This dip in the new launches was primarily
attributed to the momentary civil unrest over Kaveri
water issue between the state of Karnataka and Tamil
Nadu. Also, many projects could not initiate construction
and remained in the pre-launch stage due to delays in
getting necessary approvals from government
departments in the wake of Bruhat Bengaluru
Mahanagar Palike‘s (BBMP) recent city wide initiative to
tackle the encroachment of storm water drains
(rajkaluves) and the lake beds.
With end user affordablity being the prime criteria,
almost 96% new unit launches were restricted to the
mid-end segment barring the launch of a high-end
apartment complex in the residential neighbourhood of
J.P. Nagar. Of the total new units launched, Hope Farm
Junction (25%), Whitefield (20%) and Hennur Road
(15%) emerged as the top three locations garnering
maximum launches. Other peripheral locations such as
Banashankari 6th stage, Kanakpura Road and
Bannerghatta Road together accounted for rest of the
share.
Market Trends
Micro Markets
Capital Values
(INR Per Sq Ft)
QOQ%
Change
YOY%
Change
Central 21,000-31,000 4% 8%
Cooke Town 7,700-15,000 6% 6%
Jayanagar 8,700-10,700 2% 2%
Sadashivanagar 9,200-15,200 2% 2%
Airport Road 8,800-11,200 3% 11%
Indiranagar 8,200-13,000 1% 6%
Bannerghatta
Road
4,700-8,700 -1% 3%
Kormangala 6,800-10,700 -3% 3%
Whitefield 4,400-8,700 -3% 3%
Yelahanka 4,200-10,200 3% -4%

Sumit Jain
National Director
Aakanksha Anand
Senior Manager
Aakanksha.anand@colliers.com
Authors:
Surabhi Arora
Research
Divya Grover
Senior Manager
Research
Divya.grover@colliers.com
INR per sq ft
The festive season has triggered a slew of
soft launches in the market and developers were
offering freebies such as gold coins, lucky draw for
car, no pre EMI for first two years (as part of 20:80
schemes) and buyback plans to gain traction among
prospective buyers. Demand remained concentrated in
locations near employment hubs for mid-segment
products ranging in the price bracket of INR 60 lakhs –
65 lakhs.
Capital values appreciated in the range of 1 to 6%
across micro markets barring a few locations such as
Whitefield and Bannerghatta Road, which witnessed
slight correction in prices. In the coming quarter, we
expect, capital values to remain stable due to
continuous addition of new supply in the market.
The city continued to witness completion of new
projects in Northern and north-western suburbs of
Hennur Main Road and Rajaji Nagar along with
southern favourites such as Bannerghatta Road and
Electronic City Phase-I. The completion of new
projects kept the rents stable across micro markets.
Completion of a few office IT park provided an
impetus to the rental market in the Sarjapur Main Road
belt.
Colliers View
We expect the next quarter to bring the much needed
vitality back in Bengaluru’s residential sector as sales
should revive in the upcoming festival season. There is a
sizeable pipeline of new projects that are likely to get
launched in the coming quarters. Projects launched in
proximity to employment hubs at right price points
should continue to attract buyers. However, delay in
reaching consensus over the implementation of Real
Estate (Regulation and Development) Act, 2016 in
Karnataka and objections raised by the Governor may
inevitably affect buyers sentiments negatively in short-
term.
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
Q32010
Q32011
Q32012
Q32013
Q32014
Q32015
Q32016
Q32017F
Q32018F
Central Cooke Town
Jayanagar Sadashivanagar
Airport Road Indiranagar
Bannerghatta Road Koramangala
Whitefield Yelahanka
0
10
20
30
40
50
60
70
80
Central
CookeTown
Jayanagar
Sadashivanagar
AirportRoad
Indiranagar
BannerghattaRoad
Koramangala
Whitefield
Yelahanka

CHENNAI | RESIDENTIAL
02 November 2016
End-user demand
revival in the offing
Divya Grover | Senior Manager | Bengaluru
Given a sizeable number of new launches and stable
end-user demand for residential products in the 2 and
2.5 BHK configurations for the affordable and mid-
segment, we expect the primary residential market to
continue its revival as the festive season approaches.
Demand
Shall revive for mid-segment products
with above mentioned ticket sizes
Supply
Steady inflow of new launches shall
continue albeit at a slow pace
Capital Values
May remain steady across micro
markets. However, some high-end
locations may witness marginal price
dip
Rental Rate
Likely to remain stable till the end of the
year due to current availabilities
Construction
Developers to remain focused on
current completions
New launches remain stable
In Q3 2016, nearly 2,300 new residential units were
launched in the primary market; a marginal uptick of 2%
over the previous quarter which took the YTD total to
about 5,500 units. As the end-user preference is skewed
towards mid-segment products, we noted more than
62% units being launched in this segment in the current
quarter. The central government’s efforts to promote and
incentivize construction of affordable housing has
spurred the supply in this segment and Chennai
witnessed about 31% new launches in this segment in
this quarterly review. However, due to a lull in demand
for high-end segment products where current price
points are largely outside the affordability bracket of
buyers, only 7% new units were launched in this
segment.
Avadi (31%), Anna Nagar (15%), Vanagaram (14%),
Egattur (11%) and Singaperumalkoil (9%) witnessed the
maximum number of new launches. Other locations such
as GST Road, Mount Road, Medavakkam and
Vengaivasal together constituted the remaining 20% of
new unit launches as some small projects with less than
100 units were launched at these locations.
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% -2%
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% 3%
Sholinganallur 4,800-5,950 0% -4%
Siruseri 3,990-5,500 0% -10%

Sumit Jain
National Director
Authors:
Surabhi Arora
Research
Divya Grover
Senior Manager
Research
Divya.grover@colliers.com
In the primary market, the weighted average price for all
units noted a marginal quarterly dip of 5% and stood at
INR 5,300 per sq ft indicating price rationalization and
further reducing the gap between price points in primary
and secondary markets. Whereas, prices in secondary
market remained stable in most of the micro markets.
INR per sq ft
Rents remained largely steady in all micro-markets
except R.A. Puram/Alwarpet where a quarterly 8%
rental dip was noted due to low demand from senior
corporate executives and guest workers.Capital values
remained stable during this quarter as the prevailing
end-user sentiment remains muted. However, on an
annual basis, Nungambakkam, Besant Nagar,
Alwarpet/R.A. Puram noted 2-4% capital value
correction in high-end segment due to weak demand
scenario. Velachery, T. Nagar and Anna Nagar, on the
other hand noted 3-5% price appreciation in the same
period due to limited supply in secondary market.
To safeguard consumers‘ interests, The Madras High
Court issued a blanket ban against registration of plots
and houses in unapproved housing layouts and
conversion of agricultural land for any non-agricultural
purpose across the state. Only approved plots by
Directorate of Town and Country Planning (DTCP) with
certificates can now be used for registration of sale
deeds of such plots.
Colliers View
Going foward, the outlook remains positive for the
residential sector as several developers have started
planning townships in far off peripherals such as
Perambur which will infuse quality supply in the north
Chennai belt. Additionally, upcoming Special Economic
Zone near the 200 feet Thoraipakkam-Pallavaram Road
coupled with the ongoing residential construction on this
belt will help provide a fillip to this location and also raise
its profile as a destination for both mid and high-end
products. Capital values and rents are expected to
remain stable across micro markets. However, erstwhile
high-end locations such as Alwarpet, R.A. Puram may
note some price correction in secondary market due to
prevailing high prices which has resulted in a lull in end-
user demand. We anticipate that the recent regulations
regarding registration of DTCP approved authorized
plots should be beneficial for end-users in the long run.
This may temporarily impact some projects in the soft
launch stage and put a break on new launches in the
next quarter. On an overall basis, improved market
sentiments and this policy change will curtail launches.
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
Q32010
Q32011
Q32012
Q32013
Q32014
Q32015
Q32016
Q32017F
Q32018F
Boat Club Nungambakkam Anna Nagar
Adyar Besant Nagar T. Nagar
Alwarpet Velcachery Sholinganallur
Siruseri
0
10
20
30
40
50
60
70
80
BoatClub
Nungambakkam
AnnaNagar
Adyar
BesantNagar
T.Nagar
Alwarpet
Velachery
Sholinganallur
Siruseri

PUNE | RESIDENTIAL
02 November 2016
Residential market
aims to comeback
Uttara Nilawar | Manager | Mumbai
In spite of the decrease in the number of launches
this quarter, prospects look favourable for the Pune
residential market. Developers are moving their focus
towards mid-end and affordable segment projects to
tap into the existing demand among buyers. Inquiries
from investors and homebuyers alike are on the rise,
signalling a recovery across the Pune micromarkets
Demand
Healthy demand for ready to move in
and near possession properties shall
continue
Supply
New launches on the slowdown due to
unsold stock but substantial new supply
is expected in the mid-end segment
Capital Values
Overall stable outlook but capital values
may rise for select micro markets in the
short term
Rental Rate
Rents set to remain stable despite
robust demand due to continual supply
addition
Construction
Increase in input costs may push prices
upwards and cause constraints resulting
in construction delays
Healthy demand among end users
kept market active
Pune remained one of the better performing residential
markets in the country in terms of residential sales and
new launches. Information Technology, education, and
manufacturing companies offering significant
employment opportunities kept the end user demand
active in the city. There was about 2% quarter-on-
quarter (QOQ) increase in the number of units launched
this quarter with little over 5,700 units, making it about
12,900 so far in 2016. Most projects launched were in
the range of INR 50-70 lakhs (INR 5 - 7 million) catering
to mid-end segment offering spacious configurations to
match the widespread demand dynamics.
More than half of the unit launches were in Northwest
Pune (57%) primarily at Hinjewadi and Baner locations.
Peripheral locations such as Bavdhan and Bhugaon in
the west comprised 25% of the unit launches, while 16%
of the launches were concentrated in Keshavnagar,
Wagholi, and 2% in Kharadi. Baner, Hinjewadi and
Kharadi have emerged as favoured residential
catchments due to the adjoining employment hubs.
Market Trends
Micro Markets
Capital Values
(INR Per Sq
Ft)
QOQ%
Change
YOY%
Change
Kalyani
Nagar/Viman
Nagar/Kharadi
5,800 - 14,500 -9% -13%
Deccan/Camp/ Boat
Club
7,000 - 15,000 0% -4%
Magarpatta/
Hadapsar
4,800 - 8,000 2% 2%
Baner/Hinjewadi/Wa
kad/Pashan
5,000 - 9,500 1% 1%
Kothrud/Bavdhan/W
ajre
7,000 - 12,000 4% 4%
NIBM/Undri/
Kondhwa
4,400 - 6,250 0% -5%
Pimpri/Chinchwad/C
hakan
4,700 - 5,800 0% -4%
The above values represent indicative selling price for premium

Sumit Jain
National Director
Authors:
Surabhi Arora
Research
Uttara Nilawar
Manager
Research
Uttara.nilawar@colliers.com
Hiren Bulsara
Assistant Manager
Hiren.bulsara@colliers.com
Pune witnessed stability in terms of both rental and
capital values in most of the vicinities barring a few
outliers. For example, a few locations such as Bavdhan
experienced appreciation of 4% and 8% respectively in
capital as well as rental rate. On the other hand, QOQ
decline was observed in Viman Nagar, Wadgaon Sheri
and Kharadi as several developers are offering discounts
in the primary markets putting a downward pressure on
the secondary markets as well.
INR per sq ft
At one point, the Pune real estate market witnessed a
balance between the investor and end user demand but
the balance has been skewed towards the end user
since the last few quarters. However, the current market
undercurrent has piqued an interest among several
international investors. Altico Capital, a non banking
financial company (NBFC) recently closed a deal worth
INR 300 crore (INR 3 billion) with Kumar Urban Ltd
(KUL) that involves funding for a residential township,
‘KUL Ecoloch’ located near Hinjewadi. As per market
sources, US based Portman Holdings recently exited
Kolte Patil’s project Margosa Heights in Pune.
Infrastructure developments are on a priority for Pune
authorities with approval of high capacity mass transit
route (HCMTR) connecting 60 arterial roads, upcoming
metro rail project and the proposed international airport
at Purandar. Residential and commercial districts both
should benefit from numerous initiatives to minimize
traffic congestion in the city.
Colliers View
The Pune market shall continue to be dominated by the
mid-end and affordable housing units equipped with
basic modern amenities like club house, swimming pool,
landscaped garden and open space. We expect to see
some demand in the luxury segment at Kharadi and
Baner locations. Prices are expected to remain stable in
the short term. However, there might be appreciation in
the long run owing to increasing input costs to
developers coupled with increasing demand from buyers
outside the city and NRI investors.
Pune has all the favourable economic and demand
drivers firmly set in place due to the combined effect of
automobile manufacturing, technology, services and
hospitality sectors. The integrated township culture of
Pune offering a wide bandwidth of budget categories has
also generated tremendous interest among investors. As
buyer interest is also rejuvenating, developers should
gear up for the upcoming favourable climate. Pune
residential market is on a path to recovery and its future
outlook looks promising.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q32010
Q32011
Q32012
Q32013
Q32014
Q32015
Q32016
Q32017F
Q32018F
Kalyani Nagar/Viman Nagar/Kharadi
Deccan/Camp/Boat Club
Magarpatta/Hadapsar
Baner/Hinjewadi/Wakad/Pashan
Kothrud/Bavdhan/Wajre
NIBM/Undri/Kondhwa
Pimpri/Chinchwad/Chakan
0
5
10
15
20
25
30
Kalyani
Nagar/Viman
Nagar/Kharadi
Deccan/Camp/
BoatClub
Magarpatta/Had
apsar
Baner/Hinjewad
i/Wakad/Pasha
n
Kothrud/Bavdha
n/Wajre
NIBM/Undri/Kon
dhwa
Pimpri/Chinchw
ad/Chakan

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:

India Research Property Market Overview Q3 2016

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India Research Property Market Overview Q3 2016