INDIA REAL ESTATE OVERVIEW

PROPERTY INSIGHTSIndia Quarter 3, 2018

Introduction

Economy

At a growth rate of 8.2% during April-June quarter, the Indian economy grew at its fastest in two years – again

cementing its position as the fastest growing economy in the world. The rally has been led by a strong pick-up in

the manufacturing segment that grew at 13% during the quarter. The construction sector, too, made a strong

recovery to grow at 8.7% against 1.8% in the corresponding period last year. Overall, the Indian economy is poised

for stable growth going ahead, while the world economy continues to witness uneven growth due to rising oil

prices and escalating trade tensions. According to International Monetary Fund (IMF), India is likely to grow at 7.3%

in the current financial year, against a global growth of 3.9%.

GDP growth rate & Repo Rate

GDP Growth Repo rate

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1'18 Q2'18 Q3'18

Source: World Bank, RBI, BSE, DIPP

Introduction

Over the last few years, the NDA-led central government has been taking steps to make India an attractive

investment destination. Relaxation of FDI norms across multiple sectors such as aviation, food processing,

defence, pharmaceuticals and introducing single-window clearances among other reforms have played a huge

role in India’s emergence as a strong investment destination among global investors. The government has also

been actively promoting its initiatives such as Make in India, development of new industrial corridors, Smart Cities,

Housing for All and infrastructure projects, etc. to attract foreign investment in India.

Strengths Threats

Recovery from Demonetization, GST High oil prices

Growth in private consumption Inflation

Sustained private investment (easing FDI norms,Ease of Doing Business)

Rupee depreciation

Policy reforms (Increased productivity throughMake in India initiative)

Stressed assets, rising NPAs

Note: As accessed from state RERA portals on October 5

State No. Of Projects Registered

Maharashtra 17,900

Karnataka 2,000

Tamil Nadu 700

3,600Gujarat

Haryana 300

RERA: Taking Stock

More than a year into the enforcement of the Real State Regulatory Authority (RERA), Indian states have achieved

varied levels of progress. While states like Maharashtra, Karnataka, Gujarat have fully operational RERA portals,

with an established conflict resolution mechanism, several states are lagging in implementation. Maharashtra has

taken the lead in forming its RERA portal and has the highest share of registered projects. In states like Telangana

and Haryana, the respective governments have launched the portals, albeit with relatively lower registrations. On

the other hand, West Bengal has steered away from the national RERA policy, and notified its own state policy- WB

HIRA (Housing Industry Regulatory Authority).

Regulatory Overview

MCLR Trend

Foreign banksPublic sector Bank

7.00%

8.00%

9.00%

10.00%

June-2016

Interest Rates on A Strengthening Spree

For the period between 2014 to 2017, a robust rate of economic growth, benign inflation supported by all-time low

crude prices and robust forex inflows, allowed the RBI enough headroom to reduce the repo rate in nearly every

quarterly monetary policy. While this was a great boost to the credit and as well as the investment cycle, there were

concerns that the banks were not doing enough to pass on the benefit to consumers. In August 2016, the shift by

the RBI to the MLCR (Marginal Cost of Lending Rate) for new lenders was the step in the right direction. This

allowed new lenders to take advantage of the dynamic and low interest rate regime. However, older lenders were

still linked to the base rate that was still high.

The dynamic nature of the MCLR which allowed the lending rates to hit a seven-year low in 2017 worked well for the

credit cycle, however the RBI continued to push banks to pass on more benefit to the lenders in alignment with

declining repo rates and also allow old lenders to shift to MCLR regime.

However, beginning 2018, amidst inflation concerns in the economy fueled by oil prices and government policies

around increasing minimum support prices to crops and increased house rent allowances under the 7th pay

Commission along with a hardening in global commodity prices and escalating trade tensions have created

inflationary headwinds. With the RBI focused more on inflation targeting, there has been a hardening in stance in

terms of increasing repo rate which has gone up by 50 bps via a two-time increase. This has also resulted in banks

increasing their interest rates by 50-80 bps over the past couple of quarters. The country’s leading public-sector

bank, State Bank of India, increased its MCLR four times in 2018- from 7.95% at the beginning of 2018 to 8.50% in

October 2018. As seen below, public sector, private sector and foreign banks revised their MCLR upwards in 2018.

Sept-2016 Dec-2016 Mar-2017 June-2017 Sep-2017 Dec-2017 Mar-2018 June-2018 Sep-2018

Private sector bank

Impact on Residential Sector

Interest rates & stable home prices present good opportunity for homebuyers

An increase in home loan rate till now, will not have a significant impact on purchase of residential units, especially

in the mid and high-end segment as the change in actual EMI payable will not be significant. Weighted average

lending rates of public sector banks increased from 10.19% to 10.22% in July, while that of private sector banks

1increased from 10.53% to 10.55% in the same period . Moreover, in certain markets, home prices are now

bottoming off, and may move upwards as the market starts to recover over the course of time. If the banks

continue to raise rates over next year, the double-edged sword of a possible increase in prices and higher interest

rates may impact the monthly outgo of the homebuyer. Therefore, with most banks in the beginning of curve of raising

rates currently, this is an opportune time for homebuyers, as it coincides with stable prices in most markets. Serious

buyers, especially in an end-user driven market, should continue to scout the market for properties in this scenario.

Any hike in lending rate adversely affects the EWS, LIG and MIG who seek to buy homes. However, the government

has rolled out the credit linked subsidy scheme (CLSS) under the government’s Pradhan Mantri Awas Yojana

(PMAY), to make credit cheaper and more accessible. Hence, homebuyers from these income groups can insulate

themselves from rising interest rates, by availing subsidy on interest. Hence, it is a good time for first-time

homebuyers to enter the market, without being deterred by the rise in interest rates.

1Reserve Bank of India

Credit Linked Subsidy Scheme

Income Group

EWS

LIG

MIG I

MIG II

Income

Annual income up to INR 3 lacs

Annual income between INR 3 to 6 lacs

Annual income between INR 6 to 12 lacs

Annual income between INR 12 to 18 lacs

Area

up to 30 sq m

up to 60 sq m

up to 160 sq m

up to 200 sq m

Eligible loan

6 lacs

6 lacs

9 lacs

12 lacs

Interest subsidy

6.5%

6.5%

4.0%

3.0%

Loan tenure

20 years

20 years

20 years

20 years

Rupee depreciation: More bang for the buck for foreign investors?

Over the last few months, the Rupee has seen a sharp depreciation of around 14% over the past one year. On one

hand, the deprecating rupee can increase developers’ expenses, especially if they import services and raw

materials. However, on the positive side, a weak currency can give a fillip to purchases from overseas investors, as

Source: stPMAY, MIG I & II schemes currently have a validity till 31 March, 2019

it gives NRIs a compelling reason to invest in property in India. This is an attractive investment opportunity as NRIs

can benefit from the currency rate to buy into the market at a discounted rate. The rupee depreciation coupled

with a bottomed out real estate market and a consumer protection net in the form of RERA and investor protection

in the form of the revised Insolvency and Bankruptcy Code presents an opportunity for NRIs to revisit real estate

investments in India. Their focus on the larger cities and premium and luxury apartments could kickstart a small

revival in this residential price segment.

This situation could also boost institutional inflows into the residential sector from foreign entities. Residential

sector, for long, has been a preferred sector for private-equity players, with foreign investors pouring in excess of

USD 2.7 bn between 2014-H1 2018 (as per Cushman & Wakefield Research). With the rupee depreciating,

institutional investors may hasten their investment decisions to get a good bargain.

Rupee Depreciation

Foreign banksPublic sector Bank

74.00

72.00

70.00

68.00

66.00

64.00

62.00

60.00

58.00

Oct-2017 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18

Private sector bank

Sep-18 Oct-18

Source: RBI

Real Estate Market Snapshot

Residential

Increase in new unit launches

during Q3 2018

18%

Share of affordable segment in

overall unit launches

46%

Increase in average

project size

7%

Office

Increase in gross absorption

q - o - q

2-fold

New supply in Q3 2018

10.2 msf

In key locations across

IT markets

Single-digit vacancy

New mall supply in Q3 2018

0.5 msf

Most active in leasing

F&B,

Apparels Increase in mall rents

1% to 2%

Retail

Indian Residential Sector Overview

Bengaluru and Mumbai witness strong

growth in launches

Affordable Segment

Share declined to 40% in Q3 2018 from 49%

in Q2 2018

Mid Segment

Held a 12% share of unit launches; led by

Mumbai and Bengaluru

High-end Segment

Significant leap witnessed in Chennai

Luxury Segment

New Launches in Q3 2018 (in units)

3Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune

Affordable Mid High-end Luxury

5,860

657

5,448 2,128 900

4,181

869

1,527

611

2,874 2,062

300

284

1,177

206

1,172

413

56

818

30

Ahmedabad Bengaluru Chennai Delhi-NCR Hyderabad Mumbai Pune

Unit launches moderated and increased by 18% on a sequential (q-o-q) basis across the top 7 cities (Delhi-

NCR, Bengaluru, Mumbai, Chennai, Hyderabad, Pune, and Ahmedabad) during Q3 2018. This was mainly led

by a quantum leap in launches in Bengaluru followed by a strong growth in Mumbai. Across most of the other

cities, launches slowed down during the current period after a strong momentum witnessed during Q2 2018.

Affordable segment occupied a majority proportion in the overall unit launches at 46% during the third

quarter of 2018. This was followed by the mid segment, which continued its healthy pace though witnessing

a marginal decline on a q-o-q basis with its share at 40%. Select large projects were launched in the

peripheral areas of Mumbai, Bengaluru and Pune as developers look to benefit from the government’s

affordable housing policy.

Market sentiments continue to be promising backed by improving regulatory environment leading to strong

consumer confidence. However, sales offtake continues to be slow in most of the cities and developers

continue to dole out lucrative offers, discounts and freebies to attract fence sitters. Capital values have

largely remained at similar levels in most of the cities except select submarkets in Hyderabad. Capital values

also increased by 2-3% for the high-end segment in South and Central Delhi submarkets. In the upcoming

festive season, developers are expected to adopt aggressive marketing strategies to push the sale of

completed and under-construction inventory across all the cities. Buyers are expected to have an upper hand

in this positive market environment, resulting in favourable purchase decisions.

Key Trends

67

615

Mumbai ...................................................................................... 1

Delhi-NCR .................................................................................. 4

Bengaluru .................................................................................. 7

Index

Residential Overview

Mumbai

Overall unit launches continued their strong

momentum during Q3 2018 growing by nearly 29%

from the preceding quarter, and stood at nearly

9,500 units.

This was mainly led by few large project launches

in the western suburbs, followed by Thane.

Developers in the city look to benefit from the

government’s affordable housing policy and continue

to launch smaller sized units (below 30 sqm in city’s

core areas, and 60 sqm in peripherals).

The affordable segment continued its healthy

streak, accounting for 57% of the launches during

the quarter.

Homebuyers continue to be cautious and the

market remains price sensitive. Buyers are closely

evaluating the overall landing cost before effecting

their purchasing decisions

Share of launches in price segments

Rationalization of unit launches

12%

Source: Cushman & Wakefield Research

1

Average Capital Values – Mid Segment (INR '000/sf)

South

South Central

Far North

Central

North East

North

Location

48.0 - 75.0

46.0 - 83.0

12.5 - 20.0

27.0 - 65.0

15.0 - 24.0

28.0 - 50.0

48.0 - 75.0

46.0 - 83.0

12.5 - 20.0

27.0 - 61.0

15.0 - 24.0

28.0 - 50.0

48.0 - 75.0

46.0 - 83.0

12.5 - 20.0

27.0 - 61.0

15.0 - 24.0

28.0 - 50.0

48.0 - 75.0

46.0 - 83.0

12.5 - 20.0

27.0 - 61.0

15.0 - 24.0

28.0 - 50.0

48.0 - 75.0

46.0 - 83.0

12.5 - 20.0

26.0 - 59.0

15.0 - 24.0

28.0 - 50.0

2016

2016

2017

2017

Q1 2018

Q1 2018

Q2 2018 Q3 2018

Q2 2018 Q3 2018

Average Capital Values – High-End (INR ‘000/sf)

South

South Central

Far North

Central

North East

North

Location

40.0 - 50.0

45.0 - 58.0

10.0 - 16.0

23.0 - 45.0

10.0 - 14.0

20.0 - 30.0

40.0 - 50.0

45.0 - 58.0

10.0 - 16.0

23.0 - 45.0

10.0 - 14.0

20.0 - 30.0

40.0 - 50.0

45.0 - 58.0

10.0 - 16.0

23.0 - 45.0

10.0 - 14.0

20.0 - 30.0

40.0 - 50.0

45.0 - 58.0

10.0 - 16.0

23.0 - 45.0

10.0 - 14.0

20.0 - 30.0

40.0 - 50.0

45.0 - 58.0

10.0 - 16.0

23.0 - 45.0

10.0 - 14.0

20.0 - 30.0

Source: Cushman & Wakefield Research

For details on project launches, refer Annexure

The values in the legend are in INR/sf.

57%

30%

10%

77%

13%

2016

45%

51%

4%

2017

13%

52%

35%

Q2 ‘18 Q3 ‘18

< 7,500 7,501 - 25,000 25,001 - 40,000 > 40,000

70%

25%

Q1 ‘18

6%

16%

56%

27%

2015

Launches – segment-wise across submarkets (%)

Submarkets Affordable Mid High-end Luxury Total (Number of units)

Eastern Suburbs

Western Suburbs

South Central

Thane

Navi Mumbai

0%

74%

0%

43%

86%

38%

22%

0%

51%

14%

62

3%

100%

7%

0%

% 0%

0%

0%

0%

0%

916

5,092

260

2,594

632

The Supreme Court has revoked the ban on

construction of new buildings in March 2018 and has

granted permission, on the condition of developers

employing adequate safeguards for proper disposal

of construction waste and other related covenants.

This order will remain in effect for 6 months post

which the Brihanmumbai Municipal Corporation (BMC)

is obliged to submit a fresh report to the Supreme

Court. This has intensified construction activities

across submarkets in the city.

The submarket of Thane including the peripheral

locations of Dombivli, Ambernath and Badlapur, Mira

Road and Navi Mumbai (in and around Panvel)

continue to witness heightened construction activity

during the third quarter of 2018. Areas such as

Vikhroli, Kanjurmarg, Bhandup in the Eastern suburbs

and Western suburban locations of Andheri,

Goregaon, Malad, Kandivali, Borivali etc., have a

strong under-construction pipeline. During Q3 2018,

select large projects were completed across locations

such as Parel, Andheri (East), Goregaon and Ghatkopar

in the high-end segment. Further, projects were also

completed in the peripheral areas of the Western

suburbs and Navi Mumbai, mainly in the affordable and

mid segment categories.

The capital and rental values have largely remained

range-bound in both mid and high-end segments

across most of the markets. However, prices in and

around Lower Parel and Mahalaxmi continue to be

under pressure due to sluggish demand.

Residential

Select established developers are likely to launch large projects within the city, mainly in the high-end

segment. At the same time, peripheral locations on the eastern and western suburban markets might

continue to see traction in launch activity.

In the backdrop of the upcoming festive season, developers are likely to offer several discounts, incentives

and freebies to lure fence sitters and push offtake in units. While quoted values are expected to remain

range-bound, genuine buyers are likely to be well positioned to strike a lucrative deal.

Launches Buyer sentiment Price

Outlook

Source: Cushman & Wakefield Research

KEY TO SUBMARKETS:

Eastern Suburbs: Sion, Wadala, Kurla, Chembur, Ghatkopar, Vikhroli, Powai, Chandivali, Kanjurmarg, Bhandup, Mulund

Western Suburbs: Andheri, Jogeshwari, Goregaon, JVLR, Malad, Kandivali, Borivali, Dahisar

South Central: Worli, Prabhadevi, Lower Parel / Parel, Dadar, Matunga

Navi Mumbai: Airoli, Ghansoli, Rabale, Koparkhairane, Vashi, Turbhe, Sanpada, Nerul, Belapur, Kharghar, Panvel

% indicates proportion of unit launches in different segments within a submarket.

2

3

About 3.2 msf of incremental Grade A office supply expected in Q4 2018

Leasing is expected to see a strong momentum, growing at an annual rate of 5-6% on the back of

consistent demand from IT-BPM, co-working and consulting sectors

The dearth of fresh supply amidst strong demand is likely to firm up rentals by 2-4% in SBD and

Andheri-Kurla Road by the end of 2018.

RentalsVacancyAbsorption

Office

Leasing Vacancy Rentals

Mall leasing is expected to gain traction in select submarkets such as Lower Parel, Link Road (Andheri W)

and Ghatkopar, resulting in rentals moving upwards owing to limited supply.

Main street rentals in BKC and Chembur are expected to firm up as demand strengthens amidst limited supply.

Retail

Residential Overview

Delhi-NCR

4

New unit launches decreased by 6% q-o-q during

Q3 2018 at 1,995 units. However, on a year-on-year

(y-o-y) basis, this was an increase of more than two

times reflecting the gradual shift towards new

project launches, even though the unsold inventory

in Delhi NCR continues to remain high.

The submarkets of Noida Expressway (Sector

150) and Greater Noida West in Noida constituted

48% of the total new launches during the quarter.

Gurugram which accounted for 46% of the new unit

launches noted activity in the micro-markets of

Dwarka Expressway and IFFCO Chowk.

Mid segment had a share of 59% in new unit

launches during the third quarter, while the rest

were in the high-end segment.

Source: Cushman & Wakefield Research

For details on project launches, refer Annexure

The values in the legend are in INR/sf.

Rationalization of unit launches

*Capital values have been recalibrated historically

Source: Cushman & Wakefield Research

Average Capital Values – High-End Segment (INR '000/sf)

South-West

South-East

Gurugram*

South-Central

Noida

Central

38.0 – 53.0

24.0 – 35.0

11.0 – 16.5

25.7 – 43.0

7.5 – 9.0

60.0 - 90.0

32.0 – 49.0

24.0 - 35.0

*10.0 – 16.2

25.0 - 43.0

7.0 – 9.0

60.0 - 90.0

32.0 – 51.0 32.0 – 51.032.0 – 49.0

24.0 - 35.0 24.0 - 35.024.0 - 35.0

10.0 – 16.2 10.0 – 16.210.0 – 16.2

25.0 - 45.0 25.0 - 45.025.0 - 43.0

7.0 – 9.0 7.0 – 9.07.0 – 9.0

60.0 - 95.0 60.0 - 95.060.0 - 90.0

2016 2017 Q1 2018 Q2 2018 Q3 2018

Average Capital Values – Mid Segment (INR '000/sf)

South-East

South-Central

Gurugram*

Noida*

Location

4.5 - 9.0* 4.5 - 9.0* 4.5 - 9.0 4.5 - 9.04.5 - 9.0

20.9 – 25.7

23.8 – 33.3

4.0 – 6.5*

20.0 – 25.0

23.8 – 33.3

4.0 - 6.5*

20.0 – 25.0 20.0 – 25.020.0 – 25.0

23.8 – 33.3 23.8 – 33.323.8 – 33.3

4.0 - 6.5 4.0 - 6.54.0 - 6.5

Share of launches in price segments

36%

59%

41%

54% 52%

80%

24%31%

10%17% 20%

70%

6%

2016 2017 Q1 ‘18 Q2 ‘18 Q3 ‘18

< 2,800 2,801 - 8,000 8,001 - 20,000 > 20,000

Location 2016 2017 Q1 2018 Q2 2018 Q3 2018

5

Launches – segment-wise across submarkets (%)

0%

0%

0%

0%

24%

100%

0%

76%

0%

Delhi

Gurugram

Noida

0%

0%

0%

0

924

100

Submarkets Affordable Mid High-end Luxury Total (Number of units)

Source: Cushman & Wakefield Research

KEY TO SUBMARKETS:

Gurugram: Excludes Manesar, Sohna

Noida: Excludes Greater Noida, Noida Extension

% indicates proportion of unit launches in different segments within a submarket.

Steady demand conditions kept the average capital

values largely similar across most submarkets during

the third quarter. However, certain micro-markets in

Gurugram like Golf Course Extension Road witnessed

a 3 – 4% q-o-q increase in capital values, especially as

the area is observing construction progress & project

completions. Rental values in South Delhi increased

by 12% on a q-o-q comparison for the mid segment

properties and by 4 – 6% for the high-end segment

owing to higher demand for rented properties in the

area.

New completions were noted in the micro-

markets of Noida Expressway, Sector 79 in Noida

during the quarter. As developers continued to

remain focused on construction of existing projects,

several micro-markets like Greater Noida West and

Noida Expressway in Noida and Golf Course Extension

Road, Dwarka Expressway and New Gurugram sectors

in Gurugram are likely to witness new completions in

the upcoming quarters.

Delhi Development Authority approved the Land

Pooling Policy in Delhi (approval awaited by Ministry

of Housing and Urban Affairs). Under the scheme,

DDA will pool land parcels owned by individuals /

developer, and return the land parcel upon

development of infrastructure. The policy, which will

replace the process of land acquisition, will release

land parcels for development in urban extensions of

Delhi, and increase the supply of organized housing

in the city.

Residential

Launches Buyer sentiment Price

New unit launches expected to remain largely range-bound in the upcoming quarter.

Capital prices across submarkets to remain broadly similar due to a high unsold inventory.

Sales are likely to increase on a gradual basis with improvement in the buyer sentiment.

Outlook

6

Office

Absorption Vacancy Rentals

Gurugram and Noida are expected to see addition of new supply of around 1.9 msf in the next quarter,

44% being in Golf Course Extension Road.

Leasing is likely to remain strong in the next quarter, with non-CBD region of Gurugram expected to

lead the office transaction activity.

Overall city rents are likely to remain largely stable in the upcoming quarter.

Retail

Rentals across malls and main streets are expected to maintain status quo in the upcoming quarter

owing to stable demand.

Apparels, lifestyle and F&B brands are likely to be the major demand drivers for retail spaces.

Vacancy RentalsLeasing

Residential Overview

Bengaluru

7

Launches were at about 10,910 units in the third

quarter of 2018, an increase by 1.9 times from the

previous quarter.

Over one-third of the launches in the current

quarter were contributed by North Bengaluru

followed by the South submarket (26.4%).

The affordable segment showed a surprising

increase, accounting for 54% of new launches, followed

by 38% contribution by the mid segment.

Majority of the developers though are still focused

on completing ongoing projects while also clearing

out their unsold inventory.

Share of launches in price segments

Rationalization of unit launches

Source: Cushman & Wakefield Research

For details on project launches, refer Annexure

The values in the legend are in INR/sf.

17%

54%

38%

8%

77% 80%

81%

13%13%

6% 5%19%

87%

0%

1% 2% 0% 0%

2016 2017 Q1 ‘18 Q2 ‘18 Q3 ‘18

< 2,800 2,801 - 8,000 8,001 - 20,000 > 20,000

Central

South East

North

East

South

Off Central I

South West

Off Central II

North West

4.5 – 6.75

7.0 – 10.0

4.5 – 6.5

5.0 – 7.0

7.0 – 11.0

6.5 – 8.5

6.5 – 7.5

10.0 - 12.5

4.3 – 6.0

4.5 – 6.75

7.0 – 10.0

4.5 – 6.5

5.0 – 7.0

7.0 – 11.0

6.5 – 8.5

6.5 – 7.5

10.0 – 12.5

4.3 - 6.0

4.5 – 6.75

7.0 – 10.0

4.5 – 6.5

5.0 – 7.0

7.0 – 11.0

6.5 – 8.5

6.5 – 7.5

10.0 – 12.5

4.3 - 6.0

4.5 – 6.75

7.0 – 10.0

4.5 – 6.5

5.0 – 7.0

7.0 – 11.0

6.5 – 8.5

6.5 – 7.5

10.0 – 12.5

4.3 - 6.0

4.5 – 6.75

7.0 – 10.0

4.5 – 6.5

5.0 – 7.0

7.0 – 11.0

6.5 – 8.5

6.5 – 7.5

10.0 – 12.5

4.3 - 6.0

Location 2016 2017 Q1 2018 Q2 2018 Q3 2018

2016 2017 Q1 2018 Q2 2018 Q3 2018

Average Capital Values – Mid-End (INR '000/sf)

Source: Cushman & Wakefield Research

Average Capital Values – High-End Segment (INR '000/sf)

Central

South

Off Central

North

East

Central

7.5 - 11.5 7.5 - 11.57.5 - 11.5

18.0 - 21.0 18.0 - 21.0 18.0 - 21.0

7.5 - 11.5

18.0 - 21.0

18.0 - 21.0

7.5 – 11.5

8.5 - 12.0

6.5 - 10.0

7.5 - 11.5

18.0 - 21.0

18.0 - 21.0

7.5 – 11.5

8.5 - 12.0

6.5 - 10.0

18.0 - 21.0 18.0 - 21.018.0 - 21.0

7.5 – 11.5 7.5 – 11.57.5 – 11.5

8.5 - 12.0 8.5 - 12.08.5 - 12.0

6.5 - 10.0 6.5 - 10.06.5 - 10.0

Location

8

Submarkets Affordable Mid High-end Luxury Total (Number of units)

Launches – segment-wise across submarkets (%)

29%

44%

100%

72%

0%

0%

71

56%

0%

0%

0%

0%

% 0%

0%

0%

28%

0%

100%

North

East

North West

South

Cental

South East

0%

0%

0%

0%

100%

0%

3625

2418

1651

2879

72

265

Source: Cushman & Wakefield Research

KEY TO SUBMARKETS:

North: Hebbal, Bellary Road, Yelahanka, Doddaballapur Road, Hennur Road, Thanisandara Road, Hebbal, Jakkur, Devanahalli

East: Marathahalli, Whitefield, Old Airport Road, Old Madras Road, Budigere Cross, Whitefield, Old Airport Road

North-west: Malleshwaram, Rajajinagar, Tumkur Road, Malleshwaram, Rajajinagar, Yeshwantpur

South: Jayanagar, J P Nagar, Kanakapura Road, Bannerghatta Road, BTM Layout, Banashankari, Koramangala

Central: Brunton Road, Artillery Road, Ali Askar Road, Cunningham Road, Lavelle Road, Palace Cross Road, Off Cunningham Road, Ulsoor Road, Richmond Road, Sankeys Road

South-east: Sarjapur Road, Outer Ring Road (Marathahalli- Sarjapur), HSR Layout, Hosur Road

% indicates proportion of unit launches in different segments within a submarket.

At 25% each, North and South East sub markets had

the most number of under-construction projects. These

were spread across the locations of Thanisandra

Road, Hebbal, Hennur, Kogilu, Yelahanka, Devanahalli

in North and Harlur road, Sarjapur road, Hosur road in

South East.

Around 4,582 units were completed this quarter

and 34% of these completed units were in the East

submarket, in locations like Old Madras Road,

Whitefield etc. This was followed by the North West

submarket which witnessed 27% of the overall

completions in Q3 2018.

The capital values in both the high-end and mid

segments remained largely range-bound with

slower pick-up in sales.

Residential

Buyer sentiment PriceLaunches

Launches are expected to increase despite slower growth in sales and the large unsold inventory levels.

Prices are expected to remain stable and buyers are can make the best of available offers.

Outlook

9

Office

Absorption RentalsVacancy

About 4.6 msf is expected to be operational in the last quarter of 2018.

Quoted rents remained stable across most submarkets during the quarter. However, they are expected

to strengthen owing to the robust demand momentum.

Retail

RentalsVacancyLeasing

About 0.83 msf mall space is expected to become operational in Q4 2018.

Rentals in the upcoming malls are quoted higher than market average, owing to higher demand and

limited quality supply. This is likely to push the average submarket rent upwards in the last quarter

of the year.

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