connect - vestian...widening of home loan slabs likely to boost demand moreover, the banks were also...

RBI also announced a revision in the repo and reverse

repo rates in October 2013 increasing it by 25 basis points

to 7.75% and 6.75% respectively.

0

5,000

10,000

15,000

20,000

25,000

Points

Sensex

Source: www.bseindia.com

Q4 2013

Strategic Advisory Group |

INDIA: ECONOMIC INDICATORS

Headline inflation eases; Rupee recuperates against the US Dollar

India's Gross Domestic Product (GDP) at factor cost grew

by 4.8% during the period July-September, 2013. Finance,

insurance, real estate and business services sectors

registered a growth of 10%; electricity, gas & water supply

grew by 7.7%; and were the primary growth drivers.

The inflation rate that had been trending upwards during

2013 recorded a high of 7.5% in November 2013 and then

slumped to 6.2% in the last month of the year. This decline

was primarily due to easing of the headline inflation

(chiefly the food prices). However, the Index of Industrial

Production registered decline to -1.8% and -2.1% in

October 2013 and November 2013 respectively owing to

the poor performance of the manufacturing sector and

the lower output of consumer goods in view of the high

inflationary conditions.

The rupee value appreciated against US dollar during

October-December, 2013. This was largely on account of

the Reserve Bank of India (RBI) interventions and capital

controls coupled with comparatively better trade

numbers, leading to the stabilization.

Widening of home loan slabs likely to boost demand

Moreover, the banks were also observed to increase their

Prime Lending rates. A major move was State Bank of

India (SBI), India's largest lender, widening its home loan

slabs and also providing an additional concession for

women borrowers. The widening of the home loan slabs

will be beneficial for both the developers and the

customers' thereby augmenting the demand, which has

been curtailed in view of the high price points.

Table 2: Home Loan Interest Rates of SBI

Loan Amount Base Rate (p.a)

Upto INR 75L

INR 75L & Above

10.00%

10.00%

*Source: www.sbi.co.in

Effective Rate (p.a)

10.15%

10.30%

Sensex soars with return of investors

The quarter was characterized by positive sentiments

with return of investors. The Sensex peaked to an all-time

high of 21,483.74 in December 2013. Foreign Institutional

Investors have been the major drivers with most

investments in blue chip stocks. Moreover, with the RBI

maintaining the repo rates in its Mid Quarter Monetary

Policy Review in December, 2013; the overall sentiment

was quite optimistic, citing signs of recovery.

1

Figure 2: Performance of BSE Sensex

CONNECTVESTIAN QUARTERLY NEWSLETTER Q4 2013 An ISO 9001:2008 Certified Company

Poin

ts

Figure 1: GDP, Inflation & Index of Industrial Production

Pe

rce

nta

ge (

%)

-4

-2

0

2

4

6

8

10

Jul/

12

Au

g/1

2

Sep

t/1

2

Oct

/12

No

v/1

2

Dec

/12

Jan

/13

Feb

/13

Mar

/13

Ap

r/1

3

May

/13

Jun

/13

Jul/

13

Au

g/1

3

Sep

t/1

3

Oct

/13

No

v/1

3

Dec

/13

Inflation GDP IIP

Source: www.tradingeconomics.com, www.economictimes.com

Table 1: Key Policy Rates

Key Rates OCT-13 NOV-13 DEC-13

PLR*

Repo Rate

Reverse Repo Rate

CRR

14.45%

7.75%

6.75%

4.00%

14.75%

7.75%

6.75%

4.00%

14.75%

7.75%

6.75%

4.00%

*Source: www.rbi.org.in, www.sbi.co.in

According to Manpower Employment Outlook Survey “Net Employment

Outlook” figure is derived by taking the percentage of employers anticipating

total employment to increase and subtracting from this the percentage

expecting to see a decrease in employment at their locations in the next quarter.


The realty index, on the other hand, registered over 30%

decline since the beginning of the year. Moreover, the

inflationary conditions in the economy accentuated the

discomfort levels, thereby, restraining any upward

movement in the real estate stocks. The Indian realty

markets too became riskier for investors to park their

funds, hence the quarter witnessed cautious investors

keen to invest in stable markets and select projects for

safer returns.

Business Optimism Index Increases to an 11-quarter high

0

500

1,000

1,500

2,000

2,500

Points

Realty Ind ex

Source: www.bseindia.com

Q4 2013

0

10

20

30

40

50

60

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Percentage

Net Employment Outlook

Source: Manpower India, Q1 2014

1

Dun & Bradstreet Composite Business Optimism Index

was recorded at 157.2 (11-quarter high) for Q1 2014,

about 16.6% increase compared to the previous quarter.

The year-on-year increase was about 7.1%. The increase

in business optimism is to some extent on account of the

expectation of political stability coupled with certainty on

the policy front as the Cabinet Committee on Investment

cleared a number of large projects thus indicating revival

of the investment cycle.

23

33

33

27

30

29

31

23

38

38

30

35

31

38

0 10 20 30 40

Transportation & Utilities

Wholesale & Retail Trade

Mining & Construction

Public Administration & …

Services

Manufacturing

Finance, Insurance and Real Estate

Percentage (%)

Seasonally Adjusted Outlook Net Employment Outlook

Source: Manpower India,Q1 2014

As per Manpower Outlook Survey India report, Net

Employment Outlook for Q1 2014 stands at 29%. The

hiring plans weakened by 11% compared to the previous

quarter; however, 6% growth is observed on a year-on-

year basis. The hiring plans are most optimistic in West at

36%, closely followed by the North region at 35%. Net

Employment Outlook in South and East regions were

reported at 34% and 30% respectively. Hiring prospects

declined in all seven industry sectors compared to the

previous quarter. Highest Net Employment Outlook was

recorded in the Wholesale & Retail Trade and the Mining

& Construction sector.

Figure 3: Performance Of BSE Realty Index

1

Figure 5: Net Employment Outlook: Sector Wise Comparison


Figure 4: Net Employment Outlook 1

Poin

ts

Perc

enta

ge



As per Department of Industrial Policy & Promotion,

Government of India; the total Foreign Direct Investment

(FDI) inflows was recorded at approximately USD18,080

million during the period January-October, 2013; a decline

of about 12% when compared to the same period in the

previous year. FDI in the construction development sector

too registered significant decline by about 54% at USD 944

million. This can be attributed to the cautious investor

attitude across the globe in anticipation of recovery in the

US economy, stringent capital control mechanism in light

of the prevalent macro-economic instability and high

inflationary conditions, among others.

Private Equity deals closed in the real estate sector during

the period October-December, 2013 were primarily in the

residential asset class. High-end as well as affordable

projects witnessed PE investment.

As per VCC Edge, preliminary data on PE Investments in

real estate declined to USD1.29 billion during 2013 as

against USD1.66 billion in 2012. Total deals closed during

the year 2013, too declined to 45 in number from 60 deals

in 2012.

Table 3: Key PE Investments in Real Estate Sector, Q4 2013

PE Firm Developer Project Location Amount (In $ Million)

ICICI Prudential PMS RE Portfolio & Co-investor

Aditya BirlaReal Estate Fund

Relience PMS

Avenue VentureReal Estate Fund

Wadhwa Group

TATA Housingand Sidhartha Group

Vasthushodh Projects

Supertech

Residential

Residential

Residential

Residential

Mumbai

Gurgaon

Noida

Pune

24

20.3

14.4

6.5

Table 4: Key PE Exits in Real Estate Sector, Q4 2013

PE Firm Developer Project/Stake LocationInternal Rate of Return (In %)

Landmark Group Wave Group Hi Tech City Ghaziabad 0.32

FDI in Real EstateUSD 1.29 Billion PE Investments in Real Estate in 2013

INDIA REAL ESTATE MARKETOVERVIEW

19.1 million sqft space take-ups vs supply of 21 million sqft across thefour major cities

Irrespective of the slowing of the economy, the real estate

sector across Bangalore, Chennai, Hyderabad and

Mumbai exhibited impressive performance with total

office space absorption at 19.1 million sqft. Overall supply

was at 21 million sqft. All the four major cities followed a

similar trend with proportionate split of supply and

absorption. Bangalore recorded the highest supply at 42%

followed by Mumbai at 32%. Supply remained subdued in

Hyderabad on account of the wait-and-watch policy

adopted due to the uncertainties in the political space.

This resulted in slowdown in the pace of construction and

the launch of new projects. In the space take-up segment

too, Bangalore led, registering 44% of the total

absorption, closely followed by Mumbai.

Approximately, 2.4 million sqft of office supply was

recorded across all the four major cities during Q4 2013.

Absorption was at 4.9 million sqft. Rentals across most

micro-locations remained stable during Q4 2013 barring

some fluctuations in Chennai's CBD and Off CBD markets.

New mall supply during Q4 2013 was recorded at 0.78

million sqft across two mall developments in the cities of

Chennai and Hyderabad. In total, 9 malls approximating to

6.8 million sqft became operational during 2013 across

Chennai, Hyderabad and Mumbai. Quite a few malls were

scheduled for launch in Bangalore during 2013; however,

the entire supply was deferred to 2014. Mumbai recorded

the highest mall supply in 2013 amongst the four major

cities, with 3.4 million sqft (in 4 mall developments).

0

2

4

6

8

10

12

Bangalore Chennai Hyderabad Mumbai

in

million

sqft

Supply 2013 Absorption 2013

Figure 6: Supply and Absorption of Office Space in 2013

Mall supply at 6.8 million sqft

RETAIL

0

1

2

3

4

5

6

7

Bangalore Chennai Hyderabad Mumbai

in million sqft

2013 (A) 2013 (E)

Major retail giants like Carrefour, Metro Cash & Carry,

Starbucks and luxury automobile retailer –Lamborghini

among others to expand their operations during the year.

Rentals, however, remained stable across both malls and

high streets - registering minor fluctuations in select

locations.

OFFICE



(In

mill

ion

sq

ft)

Figure 7: Supply and Absorption of Mall Space in 2013 (Actual v/s Estimate)

(In

mill

ion

sq

ft)

73,350 Units launched in 2013

During Q4 2013, total new unit launches across Bangalore,

Chennai and Hyderabad were at 12,929 units. The year's

total stood at 73,350 units with Bangalore accounting for

62% of the launches followed by Chennai at 21% and

Hyderabad at 14%. Most of the new project launches

across the three major cities were in the mid and premium

segment category.

In Bangalore, most of the launches were observed to be in

North Bangalore micro-location closely followed by

Whitefield and Sarjapur. Chennai witnessed most of the

activities in the OMR, GST and NH-4 locations while

Hyderabad's Gachibowli and Madhapur registered most of

the launches. Capital values across the major cities were

observed to remain stable during the quarter.

RESIDENTIAL



Micro Location

CBD

SBD

ORR

PBD

90-110

70-75

48-55

26-28

80-85

60-65

40-50

20-24

Rental Values (INR/sqft/Month)Grade A Grade B

Bangalore North 45-55 35-40

BANGALORE

Office space absorptions at 1.8 million sqft; Major retailer expansions & residential launches mostly in mid to premium category

Infusion of fresh office space in Bangalore was recorded at

1.6 million sqft of which approximately 0.6 million sqft

was in the SEZ space. Almost 86% of the new supply

delivered during Q4 2013 has already been leased

out/committed. Whitefield and Electronic City accounted

for 48% of the new supply followed by the SBD at 28%.

Approximately 1.8 million sqft absorption was recorded

during Q4 2013 taking the total absorbed space in the city

in 2013 to 8.4 million sqft. ORR recorded almost 53% of

the absorption at 0.96 million sqft. Couple of significant

deals in the range of 150,000-300,000 sqft accounted for

about 58% of the absorptions. Most of the transactions in

CBD and SBD locations were in the range of 10,000-20,000

sqft. Interestingly, absorption recorded during the quarter

was primarily in Grade A developments. Rental values

across all micro-markets remained stable.


OFFICE

Table 5: Bangalore Office Rental Values , Q4 2013

With no new mall being operational during the quarter,

the city's retail market registered zero mall supply for the

year as a whole. Quite a few malls were scheduled to

become operational during the year; however, were

deferred to 2014. Leasing activities were mainly confined

to the high streets. Demand remained vibrant for high

street locations in New BEL Road and Kamanahalli Main

Road, and rental appreciation observed to be ~3%.

RETAIL

Office rentals mentioned are for Warm Shell spaces2

2

Moreover, the established high streets of MG Road,

Brigade Road & Church Street witnessed return of retailer

demand hence reported marginal appreciation in the

rentals.

Whilst the peripheral and suburban market of Hosur Road

and Rajajinagar witnessed major big box retailers like

Metro Cash & Carry and Carrefour commencing

operations; the high streets too observed luxury

automobile retailer, Lamborghini and food & beverage

major - Starbucks unveiling their first store in the city.


130

150

High Streets

Brigade Road

Commercial Street

Church Street

MG Road

Mall Spaces

*(INR/sqft/Month)

RentalValues

Sampige RoadMalleswaram

New BEL Road

ORR (Marathalli -Sarjapur Junction)

Bannerghatta Road

Jayanagar 11th Main Road

Indira Nagar 100 Feet Road

KamanahalliMain Road

Yelahanka Main Road

350

185

440

485

180

200

120

140

320

250

515

330

240

255

235

175

100

95

100

Magrath Road

Cunningham Road

Koramangala

Vittal Mallya Road

Whitefield

Bannerghatta Road

Mysore Road

RajarajeshwariNagar

Rajaji Nagar

Malleswaram

285

Table 6: Bangalore Retail Rental Values , Q4 2013

*RentalValues*

Central

26-28

7,000 - 25,000

20-24

Micro-Location Capital Values (INR/sqft)

Table 7: Bangalore Office Rental Values , Q4 2013

Off-Central

Bannerghatta Road

Hosur Road

Sarjapur Road

Whitefield

Bangalore North

Tumkur Road

Mysore Road

Kanakapura Road

Old Madras Road

5,000 - 11,000

2,100 - 6,300

3,300 - 5,290

4,000 - 9,000

4,000 - 8,000

3,800 - 11,500

2,800 - 5,000

4,200 - 6,600

2,100 - 6,300

3,000 - 6,000

Company Building Micro Location Location Developer

Syniverse Technologies Embassy Tech Square PBD ORR

Rajajinagar

Whitefield

1,50,000

60,000

32,000

28,000

25,000

Area (In sqft)

ABB

Nova Nordisk

CSC

Caterpillar

World Trade Centre

Neil Rao Towers

Global Research Triangle

Prestige Shantiniketan

Embassy Group

Brigade Group

Rao Computers

Bearys Group

Prestige Group

PBD

PBD

PBD

PBD

Whitefield

Whitefield


2

Approximately 7,640 units were launched during Q4 2013.

Whitefield accounted for a major share closely followed

by Sarjapur Road. Most of the new launches were

observed in mid and premium category projects and was

in apartment developments. Capital values, moreover,

remained stable as per the previous quarter figures. .

RESIDENTIAL

Micro Location Capital Values (INR/sqft/Month)

Central

Off Central

Bannerghatta Road

Hosur Road

Sarjapur Road

Whitefield

Bangalore North

Tumkur Road

Mysore Road

Kanakapura Road

Old Madras Road

7,000-25,000

5,000-11,000

2,100-6,300

3,3,00-5,290

4,000-9,000

4,000-8,000

3,800-11,500

2,800-5,000

4,200-6,600

2,100-6,300

3,000-6,000

Table 8: Bangalore Residential Capital Values , Q4 2013

Retail rental values mentioned are for Ground floor store of 1,000 sqft on

carpet with an efficiency of 80% for high streets and 65% for malls.

3

3

Table 9: Bangalore - Key Office Lease Transactions, Q4 2013

Table 10: Bangalore - Key Residential Project Launches, Q4 2013

Project Developer Location Type No. of Units

Prestige Lakeside Habitat Prestige Constructions Whitefield Apartments 3,426

Brigade Cosmopolis

New Life

Brigade Group

LGCL

Whitefield

Sarjapur Road

Apartments

Villa

880

104


CHENNAI

0.9 million sqft of office space absorption; Peripheral locations accounting for major retail and residential expansion

Chennai's commercial office market witnessed

approximately 0.9 million sqft of absorption taking the

years' total to 3.1 million sqft. SBD accounted for almost

37% of the absorption, closely followed by PBD at 35% and

off-CBD at 25%. Almost 57% of the total number of deals

transacted was small-to-mid size transactions in the range

of 10,000-25,000 sqft.

Supply remained subdued at 0.2 million sqft; mostly

confined to the PBD location. Moreover, the year as a

whole witnessed approximately 3.5 million sqft infusion

of fresh stock.

Rentals in SBD and PBD remained stable. Fluctuations

were observed in CBD - a decline, on account of high

vacancy levels and off CBD – an increase, primarily due to

limited infusion of new supply, persistent demand and

good absorption levels.


OFFICE

Vibrancy persisted in the city's retail market with another

new mall (0.35 million sqft) becoming operational with

high occupancy levels in the Velachery micro-market.

Demand was observed across retail segments but

primarily comprised of apparel and personal care retailers.

RETAIL


In view of significant mall supply during the year, no

appreciation in rentals were observed across both malls

and high streets to capitalize on the demand. Newer

locations in the peripheral markets with good catchments

were observed to garner increased retailer interests.

Micro Location

CBD

Off CBD

SBD

OMR

70

65

40

30

60

40

30

18

Rental Values (INR/sqft/month)Grade A Grade B

35-25 -

Table 11: Chennai Office Rental Values , Q4 20134

PBDGST

175

135

High Streets

Khadar Nawaz KhanRoad

RK Salai

Usman Road South

Mall SpacesValues*

*(INR/sqft/Month)

Values*

Adyar Main Road

Anna NagarSecond Avenue

Pondy Bazaar

Velachery

300

175

175

230

375

230

200

200

155

125

130

100

80

Whites Road

RK Salai

Mount Road

Nelsan Manickam Rd

Velachery

Vadapalani

185

Table 12: Chennai Retail Rental Values , Q4 20135

Usman Road North

Nungambakkam High Road

PurusuvakamHigh Road

Chennai registered approximately 4,300 new unit

launches during the fourth quarter of 2013, closing the

annual total at 15,000 units. The peripheral locations

accounted for approximately 90% of the total project

launches. Peripheral markets of OMR, GST Road and NH-4

witnessed maximum launches. Most of the new projects

launched were apartment developments in the mid and

premium segment category within the price band of INR

25-50 lakhs and INR 50 lakhs - 1 crore respectively. Capital

values, however continued to remain stable.

RESIDENTIAL


carpet with an efficiency of 80% for high streets and 65% for malls

5


Rental Rental

Micro Location Capital Values (INR/sqft)

Central

Off-Central

OMR

GST

NH-4

10,000-26,000

4,500-12,000

5,000-6,000

3,500-5,000

2,500-4,500

Table 13: Chennai Residential Capital Values, Q4 2013


Company Building Location Developer

Capegemini Cyber Towers Shollinganallur

Manapakkam

Taramani

3,00,000

73,187

70,000

Area (In sqft)

Societe Generale

INautix

DLF - 3

Ascendas ITPC

Prestige Constructions

DLF

Ascendas

Table 14: Chennai – Key Office Lease Transactions, Q4 2013

Table 15: Chennai – Key Residential Project Launches, Q4 2013


Castle Color Homes Perumpakkam Apartments 92

Costa

Lanterns Court

VGN

Casa Grande

East Coast Road

Thoraipakkam

Apartments

Apartments

87

32


HYDERABAD

Absorptions at 1.2 million sqft and persistent retailer demand irrespective of political uncertainties

Hyderabad was characterized by a meager supply of 0.2

million sqft. Quite a few prominent developments were

expected to be delivered during the quarter, however,

were deferred to Q1 2014. New supply was concentrated

in the SBD and PBD locations.

Absorptions registered buoyancy with approximately 1.2

million sqft take-ups totaling to 2 million sqft. Peripheral

micro-locations accounted for 95% of the total

absorption. During Q4 2013, a handful of large deals

accounted for almost 78% of the absorption. However,

most of the deals transacted during the quarter were

small-to-mid size transactions in the range of 10,000-

45,000 sqft.

Irrespective of good uptake, rentals remained stable to

capitalize on the demand that has been comparatively

subdued pertaining to the state's territorial division and

consequent fall-out of the same.


OFFICE

During the quarter in review, the city's retail market

continued to witness increased demand and interests

from both national and international retailers across

segments. Department stores, lifestyle brands and food &

RETAIL


Micro Location

CBD

SBD

PBD (West)

PBD

45-55

55-60

36-42

22-28

40-45

40-50

28-35

16-22

Rental Values (INR/sqft/month)Grade A Grade B

Table 16: Hyderabad Office Rental Values ,Q4 2013 6

New unit launches remained subdued at approximately

935 units in the last quarter, thereby totaling the annual

launch figure to 10,000 units for the year 2013. Most of the

new project launches were apartment developments in

the premium category and was concentrated in the

peripheral markets. No change in capital values was

observed across the city's various micro-locations.

RESIDENTIAL



7

beverage retailers were keen to commence or expand

their operations in the city. Though the peripheral market

of Kukatpally witnessed a major mall (0.4 million sqft)

becoming operational, marginal scarcity of suitable

options was observed resulting in escalation in the rentals

across select high street locations. Leasing however,

continued across both high streets as well as in the

upcoming malls. Retailers were also observed to seek

options in newer peripheries/locations with moderately

good catchments and reasonable rentals. Moreover,

consumers' demand remained persistent, irrespective of

the uncertainties in the political space; thereby

ascertaining the city's positioning to be a substantially

attractive location for retailers.

110

150

High Streets

Banjara Hills Road 1

Banjara Hills Road 2

Mall Spaces Values*

*(INR/sqft/Month)

Values*

AS Rao Nagar

Jubilee Hills Road 36

Kukutpally

230

270

280

156

125

185

170

135

135

NTR Gardens

Banjara Hills

Madhapur

175

Table 17: Hyderabad Retail Rental Values , Q4 2013 7

Panjagutta

Madhapur

Begumpet

MG Road


Rental Rental

Company Building

Value Labs H-02, Avance Hub

Infotech

PwC

ARENA

MB Towers

Location Developer

Hi-Tech City

Uppal

Banjara Hills

4,00,000

1,50,000

18,000

Area (In sqft)

Phoenix

NSL

Ind. Developer


Micro Location Capital Values (INR/sqft)

Banjara Hills

Jubilee Hills

Himayath Nagar

Maredpally

Begumpet, Somajiguda

Madhapur, Gachibowli

Kukatpally

4,000-8,500

4,000-8,000

3,000-4,500

3,000-5,000

3,000-5,000

3,000-6,000

3,000-4,000

Table 18: Hyderabad Residential Capital Values, Q4 2013

Table 19: Hyderabad – Key Office Lease Transactions, Q4 2013

Table 20: Hyderabad – Key Residential Launches, Q4 2013


Ramky Kosmos Ramky Group Tellapur Apartments 466

Mantri Euphoria Mantri Developers Manikonda Apartments 151


MUMBAI

Office space leasing at 1 million sqft; Retail demand skewed towards mallprojects

Mumbai witnessed supply at 0.35 million sqft during the

quarter; which was the least compared to the previous

quarters. Total supply in Mumbai during the year

approximated to 6.7 million sqft. Almost 60% of the total

supply was delivered in the first quarter of 2013 that

mostly comprised of deferred supply of 2012.

Meanwhile, absorption was recorded at 1 million sqft.

Suburban micro-locations accounted for a significant

share. This was primarily on account of the comparatively

good rentals and also availability of quality space options.

Moreover, the total absorption for the year as a whole

were recorded at 5.6 millions sqft. Rental values across all

the micro-locations remained as per the previous quarter

numbers.


OFFICE

No new mall became operational in Mumbai during the

quarter in review. Leasing activities across categories

persisted in the city's retail market in view of steady

consumer demand. Demand for retail space was observed

to be inclined towards mall projects on account

RETAIL


Micro Location

CBD

Western Suburbs

275-320

170-260

280-340

Rental Values (INR/sqft/Mnth)Grade A

Table 21: Mumbai Office Rental Values ,Q4 2013 8 Retail rental values mentioned are for Ground floor store of 1,000 sqft on


9

of quality mall developments in strategic locations.

Additionally, the comparatively high rentals quoted across

the high streets further enhanced the demand for mall

projects.

Micro Location

BKC

Western Suburbs

Mall Rental Value*

*(INR/sqft/Month)

High StreetRental Value*

Navi Mumbai

650

700

450

400

250

225

Table 22: Mumbai Retail Rental Values , Q4 2013 9

Eastern Suburbs

Linking Rd - Juhu

South Mumbai

Eastern Suburbs

Navi Mumbai

BKC

SBD

60-110

90-150

50-120

650

-

-

300

170

170

Leasing however, continued in the high streets with

retailers like Puma, Clarks and Vijay Sales among others

opening their outlets.


OUTLOOK

As per Reserve Bank of India, GDP growth for 2013-14 is

likely to fall below 5% owing to the continued poor

performance of the manufacturing sector. Expectations

for the financial year 2014-15 remain conservative with

GDP growth projections at 5.5%. If the projects cleared by

the Cabinet Committee on Investments translate into

investments, a positive growth in the economy can be

expected provided inflation eases and the global economy

revives. Rupee value can slide further if investors chose to

withdraw investments and surge into the US markets in

wake of economic recovery. In case the inflation comes

down, investments in India are likely to be less riskier. This

would ensure continuous inflow of investments to the

country and eventually translate into higher growth and

investor confidence.

The demand in residential sector is anticipated to gain

momentum owing to the widening of the home loan slabs

and reduction in the interest rates offered by various

banks. In the backdrop of spiraling property prices across

all the cities, the end consumers' investment plan has

been drastically hit due to affordability issues. With the

slabs widened, consumers will be able to stretch their

budget further; thereby properties that were earlier

beyond stipulated budget will now be within their ambit.

Property prices are expected to remain stable in the

short term and new launches are anticipated to be at

more realistic prices.

In the retail domain, most retailers including the foreign

entrants will seek ambiguity related to FDI resolved.

Although, sudden thrust of retailers' expansion is not

likely, most entries will be systematically phased.

With rentals already at comparatively high levels, any

drastic increase is ruled out. Retailers are expected to

venture into newer locations with good catchments and

reasonable rentals.

The mall concept is already undergoing significant

transformations and is likely to undergo further

refinement with more structured developments and

unviable projects either refurbishing its model or exiting

the scene.


In the commercial office space sector, absorption will be

higher in the initial quarters of 2014 on account of spill

over of year end deals from 2013. Demand is likely to

remain positive in 2014.

Office rentals too will remain stable. Moreover,

developers are expected to align their supply line–up in

accordance with the absorption in the market.

With the benefits for operating from SEZ developments

phasing out, new absorptions will continue, however, they

will be at par with other business / IT parks. Rentals in

these developments too, will remain stabilized.




OFFICE: LOCATION MASTER

City Metro Location Location

Bangalore

CBD

SBD

ORR

PBD

M.G. Road, Kasturba Rd, Lavelle Rd, V.M. Rd, Ulsoor Rd,

Indiranagar, Koramangala, Inner Ring Rd, Old Airport Rd,

Stretch from Hebbal to Silk Board junction

Whitefield, Electronics City, Mysore Rd, Bellary Rd,

Chennai

CBD

Off CBD

SBD

Hyderabad

CBD

SBD

PBD (West)

PBD

Begumpet, Somajiguda, Raj Bhavan Rd and SP Rd

Banjara Hills, Jubilee Hills

Mumbai

Off CBD

BKC

Western Suburbs

Eastern Suburbs

PBD

Bangalore North

OMR

GST

CBD

Navi Mumbai

Bannerghatta Rd

Sarjapur Rd

Bellary Rd ( Hebbal to BIAL)

Ambattur, OMR (Tharamani to Perungudi Toll)

OMR (Perungudi Toll, Thoraipakkam, Shollinganallur,

Velacherry, Guindy, Mt. Poonamallee Rd, OMR (Madhya Kailash to Tharamani)

Siruseri, Padur)

Shriram, L&T Estancia, Mahindra World City

Anna Salai, Cathedral Rd, Dr. R. K. Salai, Nungambakkam, T Nagar, Alwarpet & Egmore

Madhapur, Gachibowli, Raidurgam, Manikonda, Hi-Tech City

Pocharam, Uppal, Shamshabad

Fort, Church Gate, Cuff Parade, Colaba

Worli, Lower Parel, Prabhadevi

Bandra Kurla Complex

Andhei, Goregaon, Malad

Vikhroli, Powai, Mulund, Thane

Vashi, Belapur

Residency Rd, Infantry Rd



RESIDENTIAL: LOCATION MASTER

City Metro Location Location

Central

Off Central

ORR (Marathalli-Silk Board Jn) & Sarjapur Rd

Old Madras Rd

Bangalore North

Kanakapura Rd

Tumkur Rd

Chennai

Off Central

Whitefield

Hosur Rd

Banneraghatta Rd

CentralBoat Club Rd, Poes Garden, Besant Nagar, Annanagar, T. Nagar, RA Puram

Vadapalani, Saligramam, KK Nagar, Porur, Ambattur, Pallavaram, Medavakkam

Madhya Kailash, Perungudi, Thoraipakkam, Sholinganallur, Navalur

Tambaram, Vandalur, Potheri, Guduvancherri, Mahindra World City

Poonamallee to Sriperumbudur

Bangalore

OMR

GST

NH-4

Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleswaram, RMV Extension, Sanjay Nagar, RT Nagar

HSR Layout, ORR (Marathalli - Silk Board Junction), Sarjapur Rd, Haralur Main Rd, Kasavanahalli Main Rd

Whitefield, Brookefield, Mahadevpura, ORR (K.R.Puram to Marathahalli), Varthur RdK.R. Puram, Ramamurthy Nagar, Battarahalli, Sonnenahalli, Hirandahalli, Budigere, Devanahalli-Hoskote Rd

Hosur Main Rd, Electronics City, Neeladri, Chandapura, Anekal

Bannerghatta Rd, Begur, BTM Extention

Mysore Rd, Kengeri Satellite Town, Vijayanagar, Magadi Rd, RR Nagar

Kanakapura Main Rd, Banashankari Extension and Uttarahalli

Tumkur Rd, Rajajinagar, Hesarghatta, Jalahalli, HMT Township, Yeshwantpur

Mysore Rd

MG Rd, Kasturba Rd, Brunton Rd, Lavelle Rd, Richmond Rd, Residency Rd, Frazer Rd, Cox Town and Hanes Rd

Banaswadi, HRBR Layout, Hennur Rd, Thanisandra Main Rd, Bellary Rd, Yelahanka, Kogilu, Chokkanahalli, Bagalur Rd, Doddaballapur Rd, New Town Yelahanka, Jakkur

connect - vestian...widening of home loan slabs likely to boost demand moreover, the banks were also...

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