Summary of July -2017 Residential Research Report for Bengaluru

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Residential Real Estate Market, Bengaluru

JULY - 2017(SNAPSHOT H1-2017)

Information sourced and compiled by Mr. Idirees , Head Research Department, ChenakkalRedwoods Group, by analyzing the ongoing Residential Projects.

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Embracing our potential as the market's leading provider of in-depth Real Estate Analysis & Research Report, Redwoods has now successfully exited from the LJ Hooker franchise. Redwoods Research India is back with the same team of Real Estate experts and analysts with boosted dynamism backed by on-�eld experience to bring you latest updates and reports aiding you to make better Real Estate decisions.

Redwoods Group's released in the month of July is Mid-Year Residential Research Report for 2017the compilation of the general residential market in Bengaluru, and particularly the Supply and Demand scenario to give the reader a better understanding of the same. The report constitutes of and comprehends a cohesive research by the Redwoods team of Research analysts and experts where an intensive on-�eld thorough research was piloted by tracking trends from over 1,496 primary Bengaluru's residential projects.

LJ HOOKER RESEARCH INDIA IS NOW REDWOODS RESEARCH

India was considered to be the fastest growing economy in the year 2014. However, in the recent years, the Indian economy has been noting a slow growth rate as most of our economic directories are expressing a weakening trend. According to the �nancial experts and economists, India's growth is expected to reverberate to 7.2% in the 2017–18 �scal and 7.7% in 2018–19.

India's GDP growth decelerated ominously to 6.1 percent YoY in 1Q17 from 7.0 per cent in 4Q16 which is thus far the lowest recorded growth rate. The reason for this being the slowdown in consumer spending, and a drop in the investments; following the demonetization program in November 2016 which drained out 86 percent of the currency circulating in the market. In addition to these afore mentioned facts, the government changed the GDP base year to 2011-2012 from 2004-2005.

INTRODUCTION – THE INDIAN ECONOMY & REAL ESTATE

THE REPORT CONSISTS OF THREE MAIN PARTS:

Ÿ Part One - the general economic conditions and their probable effect on the Bengaluru Residential Real Estate market.

Ÿ Part Two - the analytical data from over 1,496 residential projects across Bengaluru.Ÿ Part Three - detailed list of ongoing residential developments across the city.

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GOODS AND SERVICE TAX (GST)

Ÿ The conception of GST is to account for the 'tax credits' while aiming to rationalize tax structure alongside

bringing in price uniformity.

Ÿ The Goods and Services Tax (GST) that rolled out on the Friday of 1-July-2017 has four tax slabs of 5%,

12%, 18%, and 28%, for various items and categories.

Ÿ Economic and real estate experts have foretold that the GST would bring in a lot of transparency while

minimizing fraudulent transactions.

Ÿ The effective GST rate on under-construction projects will be 12 per cent only in contrast to 18 per cent as

there will be a diminution in the cost of the land. It is believed that Supply chain mechanism in real estate

sector would be revamped after implementation of the GST.

Ÿ RERA, which came into force on the 1st of May 2017 in India, demands compulsory registration of all the

residential realty projects under the Regulatory Act for plot sizes that are more than 500sqm. It is also

applicable to certain ongoing, under construction projects.

Ÿ RERA aims to protect the interest of home-buyers while bringing in transparency and accountability into

the otherwise unregulated realty market.

Ÿ Builders are expected to disclose project related information including project plan, layout, and

government approvals- related information to the concerned RERA regulator.

REAL ESTATE REGULATION ACT (RERA)

FACTORS INFLUENCING THE INDIAN REAL ESTATE

PREDICTION FOR THE BENGALURU RESIDENTIAL MARKET

GENERAL COMMENTIndian Real estate market has been through a phase of transformation in the past 6 months where there have

been 3 signi�cant events that have impacted the industry both directly and indirectly. These events include

Demonetization, Goods and Services Tax (GST), and Real Estate Regulation and Development Act (RERA) in

the economic and regulatory front; which brought along them the mixed feelings of hope and apprehension.

Bengaluru Real Estate Market was going through a tough during the past few years, and especially in the last

one-and-a-half year due to….

PREDICTION FOR THE SECOND HALF 2017

FOR MORE, GRAB YOUR COPY TODAY!!

PART – II STATISTICAL REPORT ON BENGALURU RESIDENTIAL MARKETEXECUTIVE SUMMARY

Ÿ Bengaluru residential market witnessed a slight escalation in its Weighted Average Capital Value by 2.3% from INR 5,314 per Sq. ft. to INR 5,437 per Sq. ft.

Ÿ The Bengaluru residential market would require 39 Months to of�oad its Unsold Inventory.

ŸSales Velocity plummeted by 4.9% and reached an all-time low of 0.86% since 2012.

Ÿ During the last 6 months, i.e., the 1st half of 2017, an upsurge of 120% in the New Launches was witnessed while about 9.8 Mn Sq. ft. of Apartment Developments was added in the Residential Market.

Ÿ Weighted Average Capital Value of the newly launched apartment stands at INR 3,315 per Sq. ft. which is -28% fall when compared to the previous period

FUNDAMENTAL FIGURES NEW LAUNCHES

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BENGALURU PRIMARY RESIDENTIAL MARKET – MACRO ANALYSIS

KEY INDICATORS

Bengaluru residential market witnessed a slight escalation in its weighted average Capital Value by 2.3% from INR 5,314 per Sq. ft. to INR 5,437 per sq. ft.Sales Velocity further plummeted by 4.9% and reached an all-time low of 0.86% since 2012; at this pace, the Bengaluru residential market would require 39 months to of�oad its unsold inventory.

KEY AVERAGES

Residential apartment ticket size for a unit has stretched back to 1.03 crore. Whereas the other developments such as Villa and Row house increased further by 4% and 0.4% respectively.The average size of an apartment stands at 1,630 Sq. ft. Row House & Villa are offering at an average of 3,293 Sq. ft. and 3,321 Sq. ft. respectively.

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DEVELOPMENT WISE PERFORMANCE INDICATORS

YEARLY LAUNCHES COMPARISON

NEW LAUNCHES IN RESIDENTIAL APARTMENTS

REGION WISE MARKET DYNAMICS

DEVELOPMENT WISE PRICE TREND

Among all residential developments, Plotted schemes are giving the highest CAGR of 10.16% followed by Row house and apartment by 7.51% and 3.1% respectively.

During the past 6 months, Apartment prices ascended by 2.3% as compared to the previous period.

Eastern region contributes 76% of the unsold Inventory of where the South-east shares 45% and the North-east shares 32% of the unsold units. South-east has an unsold inventory of 63.8 Mn Sq. ft. translating into INR 30,229 crores of unsold units.

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UNSOLD INVENTORY DISTRIBUTION BY CATEGORY WISE

BUDGET HOMES (30 LAKHS TO 60 LAKHS)

DETAILED ANALYSIS ON THE BUDGET CATEGORIESVALUE HOMES (LESS THAN 30 LAKH BUDGET)

Average Size in Sq. �. 1,239 1,231 2,121 2,049 1,824 1,658

Detailed Residential market analysis and the analytical data from over 1,496

residential projects across Bengaluru

PART - III PRIMARY PROJECT SOURCE DATA

APARTMENT DEVELOPMENTS

BANGALORE NORTH EAST

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