REALTY DECODED Q4 FY’17
REALTY DECODED Q4 FY’17Page 01
NEW LAUNCHES
INVENTORY SCENARIO
INSIGHTS
CONSUMER CALLING
PRICE TRENDS
POLICY DEVELOPMENTS AND KEY TRANSACTIONS
Structure
1
2 3
4
56
Page 02 REALTY DECODED Q4 FY’17
Key Insights And Outlook
Page 03
Key Insights
Source: PropTiger DataLabs Mar’17
The market has witnessed a revival after demonetization, with sales across top 9 cities of India increasing by 19 per cent in Q4 FY’17 compared with 20 per cent fall in the previous quarter. In absolute terms, sales increased from 43,500 units in Q3 FY’17 to 51,700 units in Q4 FY’17
Mumbai, Pune and Bengaluru contributed nearly 57 per cent to the total absorption witnessed in Q4 FY’17. Mumbai accounted for nearly 23 per cent of the total sales during the quarter, followed by Pune at 18 per cent and Bengaluru at 16 per cent
Buyers inclination continued to be higher towards ready to move in projects. Around 18 per cent of the sales during the quarter were witnessed in such projects as compared to 9 per cent in the same quarter previous year
The top nine cities across India have witnessed launch of around 51,500 units in Q4 FY’17 compared with 43,250 units during the preceding quarter, an increase of 19 per cent on quarterly basis. Mumbai contributed a maximum share of 26 per cent to total launches followed by Hyderabad at 14 per cent and Gurgaon at 13 per cent
Affordable housing segment has made sizable gains after getting infrastructure status. Share of affordable housing launches has increased by 22 per cent compared to the same quarter in the preceding year
Mumbai Metropolitan Region (MMR) has witnessed a surge in launches within the sub-Rs.25 Lac segment on account of favorable policy measures by the Government. The region has contributed the maximum, around 35 per cent, to the overall launches across top 9 cities in the sub-25 Lac segment. Also, the share of launches of the segment within MMR has increased from 12% in Q2 FY'17 to 53% in Q4 FY'17
The pressure of inventory overhang eased during the quarter – from 46 months in Q3 FY’17 to 38 months in Q4 FY’17. Mumbai, Bengaluru and Pune together accounted for over 55 per cent of the unsold inventory
Prices remained range-bound in top 9 cities across all the segments. However, Bengaluru, Hyderabad and Chennai witnessed a marginal appreciation in the range of 3 to 5 per cent per annum
REALTY DECODED Q4 FY’17
Page 04 REALTY DECODED Q4 FY’17
Outlook
Source: PropTiger DataLabs Mar’17
With Real Estate Regulatory Act (RERA) coming in to force, the new launches may witness a drop in the short term as builders may wait to see how the new RERA norms turn out
Affordable housing segment is likely to make sizable gains after getting infrastructure status. Both sales and launches are expected to improve, as compared with current levels
Developers are likely to face further cash crunch as RERA will prohibit the pre-launch sales advertisements before all necessary regulatory approvals are in place; Earlier developers used to collect significant amount of revenues through pre-launch sales
Page 05 REALTY DECODED Q4 FY’17
Notes: BSP is represented in Rs./sq.ft.Inventory overhang is represented in months
Residential Landscape: Top-9 cities as of Q4 FY’17
Ahmedabad, Gurgaon and Noida witnessed steep increase in launches over the previous quarter. All cities have seen rise in sales with the exception of Kolkata and Pune. Prices have largely remained range bound.
Source: PropTiger DataLabs Mar’17
Q-o-Q (%)
-
Q-o-Q (%)
Q-o-
Q-o-Q (%)
GURGAON
MUMBAI NOIDA
HYDERABAD
BENGALURU CHENNAI
KOLKATA
PUNE
AHMEDABAD
Launches
Sales
BSP
Inventory Overhang
Launches
Sales
BSP
Inventory Overhang
Launches
Sales
BSP
Inventory Overhang
+10%
+146%
2,942(-1%)
39 36
4,822(0%)
+7%
-29%
34
(0%)5,044
+33%
+49%
+6%
5,318 (-3%)
120
+27%
+89%
3,970 (0%)
18
-43%
-13%
3,822(-1%)
40
+59%
+32%
8,153(-2%)
45
+130%
+23%
3,965(-1%)
61
-52%
+1%
4,774(0%)
28
Launches
Sales
BSP
Inventory Overhang
Launches
Sales
BSP
Inventory Overhang
Launches
Sales
BSP
Inventory Overhang
Launches
Sales
BSP
Inventory Overhang
Launches
Sales
BSP
Inventory Overhang
Launches
Sales
BSP
Inventory Overhang
+272%
Q-o-Q (%)
Q-o-Q (%)
Q-o-Q (%) Q-o-Q (%)
Q-o-Q (%)
Q-o-Q (%)
Q-o-Q (%)
Q-o-Q (%)
Q-o-Q (%)
* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway),Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.
Notes:
Q4 FY’16 Q2 FY’17 Q3 FY’17 Q4 FY’17Q1 FY’17
Inventory Overhang
Price Trend
Sales
Launches
Strong/Marginal Decline Stable Strong/Marginal Increase//
Source: PropTiger DataLabs Mar’17
Page 06 REALTY DECODED Q4 FY’17
Key performance indicators bounced back in Q4 FY’17;Almost back to Pre-Demo levels
Residential Trends in top - 9 cities*
14% 14% 19%-14%
-16%
-8%
-4% -1%
0%0% 1% 0% -1%
-9% -16%9% 0%
8% 19%
23%
Page 07 REALTY DECODED Q4 FY’17
Launches: DemonetisationE�ect Fading Away
Launches during the quarter increased by 19%; highest levels witnessed during last 8 quarters
Total number of launches in top-9 cities*
* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway),Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.
Notes:
Page 08 REALTY DECODED Q4 FY’17
Source: PropTiger DataLabs Mar’17
78,075 75,357
79,343
73,433
50,594
36,77442,269
36,27541,313
47,03243,253
51,521
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Q1 FY'15
Q2 FY'15
Q3 FY'15
Q4 FY'15
Q1 FY'16
Q2 FY'16
Q3 FY'16
Q4FY'16
Q1 FY'17
Q2 FY'17
Q3 FY'17
Q4 FY'17
# of units
-47%
42%
Launches attained 50,000 level after last 6 quarters
Page 09 REALTY DECODED Q4 FY’17
Ahmedabad, Gurgaon and Hyderabad witnessed maximum increase in launches on YoY basis
Total unit launches –Q4 FY’16 vs Q4 FY’17
* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.Analysis includes apartments and villas across the regions.
Notes:
Xrbia Aashiyana City, Karrm Brahmaand and Nebula Aavaas together accounted for over 40% share in launches within < Rs. 25 Lakhs budget segment
Source: PropTiger DataLabs Mar’17
3,36
6
4,29
6
3,72
5
4,96
6
0
5,000
10,000
15,000
20,000
# of units
Nebula Aavaas-nearly
2,700 units
SPR Group Codename City
and Skylark Aavli->600 and
>350 unitsrespectively
Signature Global The Serenas,
SupertechBelfair and
Signature Global The Roselia
->3,500 units
Tata Value Home Destination 150
->900 units
Xrbia Aashiyana City and Karrm
Brahmaand->3,500 and >2000 unitsrespectively
Vajram New Town Myhna
Properties Myhna Maple-> 500 units
eachAnand Developers Ilyf
Milan Enterprise Karnavati4
->400 units each
Usashi King Town and
Dharitri Infraventure
Universia->1,000 units
Yogesh Enterprises
Gandharv Nagari 2 and Noble
Vishnu Vihar -500 units
4,2
05
52
2
9,8
73
4,6
03
4,0
47
4,1
09
6,7
59
1,5
53 2,7
81
7,10
2
2,2
14
2,5
35
7,6
23
13,5
17
Q4 FY'17
Q4 FY'16
Ahmedabad Bengaluru Chennai Gurgaon^ Hyderabad Kolkata Mumbai** Noida* Pune
Page 10 REALTY DECODED Q4 FY’17
Launches in Affordable segment increased to 40% on back of Infrastructure status and Interest rate SOPs
* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway), Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.
Notes:
Q-o-Q budget-wise unit launches in top - 9* cities
Source: PropTiger DataLabs Mar’17
16% 14% 18% 23% 24%40%
42%30%
35%33% 41%
32%33%
38% 36%
27%
20% 23% 16% 25% 21%
17%
17%
8% 10% 8%8% 10%
12%11%
8%9%
8%18% 15% 17% 14% 12%
25% 20% 18% 13% 12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16 FY'17 FY'17 FY'17 FY'17
< Rs.25 Lakhs Rs.25-50 Lakhs Rs.50-75 Lakhs Rs.75 -100 Lakhs > Rs.1 Crore
% of units
Share of <Rs. 25 lakhs segment
increased significantly on
account of favorable policies
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
12%
19%
36%
20% 22%
8%
18%
23% 20%
24%
27%
20%
21%19%
9%
16%
9%
Page 11 REALTY DECODED Q4 FY’17
Consumer & Demand : Sales Momentum Regained
* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway),Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.
Notes:
Page 12 REALTY DECODED Q4 FY’17
Source: PropTiger DataLabs Mar’17
Sales increased by 19% over the previous quarter; still lower than the Pre-Demo levels
Sales trend in top-9 cities*e
Barring Kolkata, sales have increased across all cities with significant growth recorded in Hyderabad,
Chennai & Mumbai
92,725
80,36676,739
65,78957,245
48,97653,457 55,500 54,721 51,715
0
30,000
60,000
90,000
120,000
FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16 FY'17 FY'17 FY'17 FY'17
--22%Attained previous
year’s levels
51,550
43,512
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
19%
37,413
30,25028,894
25,832
20,97817,655
15,51016,09313,795
11,497
6,636 6,531 6,025 6,116 4,857
39,21936,321 36,348
31,88229,060
28,849
33,095
24,927
32,980
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16 FY'17 FY'17 FY'17 FY'17
# of unitsPeriod
% Change(Q-o-Q)
Units sold in ≤ 6 months old projects 3%
Units sold in 7-12 months old projects -6%
Units sold in > 12 months old projects 32%
* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway),Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.
Notes:
Page 13 REALTY DECODED Q4 FY’17
Source: PropTiger DataLabs Mar’17
Sales in top-9* cities: New projects vs old projects
Projects > 12 months old, saw higher sales growth during the quarter
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
8,075 7,207
28,017
14,323
29,271
16,676
6,272
17,529
31,699
13,728
4,586
14,149
Units sold in ≤ 6 months old projects Units sold in 7-12 months old projects Units sold in > 12 months old projects
Page 14 REALTY DECODED Q4 FY’17
All cities witnessed an increase in sales barring Kolkata
* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.Analysis includes apartments and villas across the regions.
Notes:
Q-o-Q sales inHyderabad increased
by 89%
Q-o-Q Sales Index (Base: Q4 FY’16)
Ind
ex
valu
e (B
ase
: Q4
FY
’16
=10
0)
Source: PropTiger DataLabs Mar’17
100
161
130
8781
69
113
89
118
142
102
6165
103
195
121
100
108
96
50
70
90
110
130
150
170
190
210
FY'16 FY'17 FY'17 FY'17 FY'17Q4 Q1 Q2 Q3 Q4
97105
6579
95
117118
128
97103
120
110
173
Ahmedabad Bengaluru Chennai Gurgaon^ Hyderabad Kolkata Mumbai** Noida* Pune
Mumbai, Pune and Bengaluru commands lion’s share at around 57% of combined absorption of top-9 cities in Q4 FY’17
Page 15 REALTY DECODED Q4 FY’17
Ahmedabad
Bangalore
Chennai
Gurgaon
Hyderabad
Kolkata
Mumbai
Noida
Pune
City-wise split of total absorption in Q4 FY’17
Inner Pie – Q3 FY’17 Outer Pie – Q4 FY’17
Mumbai and Pune emerged as the largest contributors to total absorption during the quarter. Hyderabad’s share has increased from 8% during the previous quarter to 12% currently
Source: PropTiger DataLabs Mar’17
6%
18%
7%
3%
8%
8%21%
8%
22%
6%
16%
8%
3%
12%
6%
23%
8%
18%
Affordable segment accounted for 58% of total sales; Mumbai, Pune and Bengaluru key drivers
Page 16 REALTY DECODED Q4 FY’17
1: Affordable segment: Units within < Rs.50 lacs budget2: Mid-segment: Units within Rs.50-75 lacs budget3: Luxury segment: Units in > Rs.75 lacs budgetAnalysis includes apartments and villas across the regions.
Notes:
Sales in top-9* cities by budget segment
Source: PropTiger DataLabs Mar’17
56% 56% 52% 52% 52% 52% 51%
20% 19%19% 20% 21% 21% 20%
18%
24% 24% 23% 25% 25%
23%
27% 29% 28% 28% 26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16 FY'17 FY'17 FY'17 FY'17
1 2 3
% of sales
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
19%
57%
21%
56% 52%
21%
27%
54% 58%
24%
Affordable Segment Mid Segment Luxury Segment
<Rs.25 Lakhs segment is gaining momentum in Mumbai; 25% of end-user demand recorded in Q4 FY’17 against 9% in Q3 FY’17
Page 17 REALTY DECODED Q4 FY’17
* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.^^ Based on survey of enquiries received by PropTIger.com.Analysis includes apartments and villas across the regions.
Notes:
Source: PropTiger DataLabs Mar’17
Budget-wise real estate end-user demand^^ –Q4 FY’17
19%
3% 7% 1% 4%
25%
48%
29%30%
2%
24%
25%
55%
33%
29%
14%
37% 33%
3%
19% 13%9%
10%
5% 8%6%
14%
39%
26%
3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of demand
Ahmedab
ad
Bengaluru
Chennai
Gurgao
n^
Hydera
bad
Kolkata
Mum
bai**
Noida*
Pune
> Rs.1 Crore
Rs.75 - 100 Lakhs
Rs.50 - 75 Lakhs
Rs.25 - 50 Lakhs
< Rs.25 Lakhs
24%
35%
17%
16%
43%
17%
17%
41%
13%
45%48%
7%
4%
Page 18 REALTY DECODED Q4 FY’17
22%
6%6%
Inventory: Moving Back To Stable Stage
Page 19 REALTY DECODED Q4 FY’17
Increase in traction during the quarter resulted in a 16% decline of inventory overhang
* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway), Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.
Notes:
Q-o-Q overall inventory overhang in top-9* cities
Source: PropTiger DataLabs Mar’17
20
25
33
38
46
39
0
5
10
15
20
25
30
35
40
45
50
FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16 FY'17 FY'17 FY'17 FY'17
# of months
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
23
29
3735 35 35
Source: PropTiger DataLabs Mar’17
* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway), Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.Size of the bubble indicates total inventory in units.
Notes:
Page 20 REALTY DECODED Q4 FY’17
Age of unsold inventory vs inventory overhang in top-9* cities (Mar’17)
40,470
Chennai45,924
Gurgaon53,430
Hyderabad37,747
Kolkata40,743
Mumbai179,798
Noida85,553
87,024
20
25
30
35
40
45
50
10 30 50 70 90 110
Age of unsold inventory (months)
Inventory overhang (months)
Hyderabad, Chennai and Mumbai have witnessed an increase in liquidity with decline in inventory overhang
Pune
Bengaluru98,564
Ahmedabad
Noida has highest share of unsold inventory aged above 3 years
Page 21 REALTY DECODED Q4 FY’17
* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.Analysis includes apartments and villas across the regions.
Notes:
Source: PropTiger DataLabs Mar’17
Age of unsold inventory in top-9 cities (Mar’17)
27%22%
38%31%
9%
26%
28%
16%
9%
28%
19%20%
17%
10%
22%
17%
15%
21%
33%43%
50%
26% 27%
40%
67%
25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
> 3 Yrs
2 to 3 Yrs
1 to 2 Yrs
≤ 1 Yr
% of inventory
Ahmedabad Bengaluru Chennai Gurgaon^ Hyderabad Kolkata Mumbai** Noida* Pune
29%
25%
19%
18%
19%
15%
26%
20%
19%
24%
More than 65% of unsold inventory in Ahmedabad, Kolkata and Pune is in the affordable segment
Page 22 REALTY DECODED Q4 FY’17
* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane. ^ Gurgaon includes Bhiwadi, Dharuhera and Sohna. Analysis includes apartments and villas across the regions.
Notes:
Source: PropTiger DataLabs Mar’17
Budget breakup of unsold inventory (Mar’17)
36%
11%
24%
5%
34%
25%
8%
33%
40%
31%
37%
56%
44%
12%
30%
24%13%
28%
15%
13%
19%6%
14%10%
10% 15%
9%
8%18% 15%
8% 8% 6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Ahmedab
ad
Bengaluru
Chennai
Gurgao
n^
Hydera
bad
Kolkata
Mum
bai**
Noida*
Pune
> Rs.1 Crore
% of inventory
13%
33%
5%
25%
28%
21%6%
22%
31%
20%
6%
25%
Rs.75-100 Lakhs
Rs.50-75 Lakhs
Rs.25-50 Lakhs
<Rs.25 Lakhs
Increased focus on completions in affordable segment, deliveries increased nearly twice as compared to Q3 FY’16
Page 23 REALTY DECODED Q4 FY’17
1: Affordable segment: Units within < Rs.50 lacs budget2: Mid-segment: Units within Rs.50-75 lacs budget3: Luxury segment: Units in > Rs.75 lacs budgetAnalysis includes apartments and villas across the regions.
Notes:
Source: PropTiger DataLabs Mar’17
Completions as % of inventory across segments in top-9 cities
* Inventory includes only under-construction units
Completions as % of inventory
4%5%
6%6%
8%9%
11%11%
14%
15%
6%
10%11%
3% 3%
4%5%
6%7%
10%11%
5%6%
7%
10%
14%
0%
2%
4%
6%
8%
10%
12%
14%
16%
FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16 FY'17 FY'17 FY'17 FY'17Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
A�ordable Segment Mid Segment Luxury Segment Overall
4%
4%
5%
5%4%
7%
9%8%
8%
11%
13%
Page 24 REALTY DECODED Q4 FY’17
22%
6%6%
Pricing: Largely Range-Bound
City Q4 FY’16 Q4 FY’17Price Change
(Y-o-Y)
Ahmedabad 1%
Bengaluru 3%
Chennai 3%
Gurgaon^ 0%
Hyderabad
Kolkata -2%
-1%Mumbai**
Noida* -3%
Pune -2%
Notes: ^^ Price weighted on number of units supply in respective projects in a city. * Noida includes Greater Noida and Yamuna Expressway. ** Mumbai includes Navi Mumbai and Thane. ^ Gurgaon includes Bhiwadi, Dharuhera and Sohna. Analysis includes apartments across the regions.
22%
2,942
4,822
5,044
5,318
3,970
3,822
8,153
3,965
4,7744,894
4,076
8,220
3,897
3,793
5,326
4,893
4,694
2,925
Page 25 REALTY DECODED Q4 FY’17
Source: PropTiger DataLabs Mar’17
5%
Hyderabad witnessed highest price appreciation backed by increase in sales
Weighted average^^ BSP (Rs./sq.ft.) of apartment units as at the end of quarter
* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway), Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.
Notes:
Weighted average price index of residential units in top-9* cities
Page 26 REALTY DECODED Q4 FY’17
Prices across all major cities remained at the same levels
Source: PropTiger DataLabs Mar’17
100
106107
107
104106
107109
110 110110
104105
105
95
99
94
103
115 116
102 104 103102
101 100101
103103 104 104
102
100 99 99 99 99 97
95
102
101 101
99
90
95
100
105
110
115
120
FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16 FY'17 FY'17 FY'17 FY'17
Bengaluru and Chennai were the only cities which witnessed price appreciation during the
quarter in absolute terms
Ind
ex
va
lue
(B
ase
: Q1
FY
’15
=10
0)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Ahmedabad Bengaluru Chennai Gurgaon Hyderabad Kolkata Mumbai Noida Pune
102
103
101
105
100101
104
107
102
99
98
109
112
101
98
9695
106
97
99
106
116
Notes: *Affordable Segment : Units within < 50 lacs budget range. **Mid Segment : Units within 50-75 lacs budget range. ***Luxury Segment : Units in > 75 lacs budget range.
Price trend map for prominent suburbs for Q4 FY’17
Page 27 REALTY DECODED Q4 FY’17
Micro-markets of Southern cities witnessed the highest price appreciation across all segments
Source: PropTiger DataLabs Mar’17
Q-o
-Q P
rice
Ch
ang
e (%
)
Affordable Segment* Mid Segment** Luxury Segment***
0%
to
1%
1% t
o 2
%A
bo
ve 2
%
Mumbai Pune Bypass (1%)
Secunderabad (1%)
Ahmedabad West (1%)
FNG Expressway,Noida (1%)
Pune Solapur Highway (< 1%)
Bannerghatta Road, Bengaluru (1%)
Chennai Central (1%)Worli to Andheri,Mumbai (1%)
ECR, Chennai (2%)
Ahmedabad East (3%)
Hennur Main Road, Bengaluru
(1%)
Bengaluru Central (1%)
Chennai North (5%)
ThanisandraMain
Road, Bengaluru(1%)
Mysore Road,Bengaluru (2%)
Bengaluru West (1%)
Pune East (< 1%)
Outer Ring Road, Bengaluru (1%)
Bengaluru South (1%)
Mumbai South (< 1%)
GST, Chennai (1%)
ORR South,Hyderabad (2%) Hyderabad
North (2%)ORR West, Hyderabad
(3%)
Policy Developments & Key Transactions
Page 28 REALTY DECODED Q4 FY’17
22%
6%
Major policy developments during the quarter
In a move towards implementing a new and consolidated indirect tax regime from the proposed date of July 1, the Lok Sabha has recently passed four bills, relating to the implementation of the Goods and Services Tax (GST)
The Parliament has passed the Enemy Property (Amendment and Validation) Bill, 2016, which denies inheritance rights to heirs of individuals who left the country for Pakistan and China
The Government of Karnataka and the Ministry of Railways signed an MoU for Bengaluru’s first suburban rail which is expected to address the situation of extreme traffic congestion in the city
The Ministry of Union Urban Development will extend the newly framed Transit Oriented Development (TOD) policy to Pune city. Under TOD, city densification will be promoted along mass transit corridors through vertical construction by substantially enhancing floor area ratio (FAR)
The Government of Maharashtra has decided to form a separate authority to regulate cooperative housing societies in MMR
The Mumbai Metropolitan Region Development Authority has approved the new 13-km Dahisar east-Mira Road-Bhayander Metro IX. This route, comprising 10 stations, will be built at an estimated cost of Rs.6,518 Crore
Mumbai International Airport (MIAL), the GVK-owned consortium running the Mumbai airport, has won the bid to develop the Rs.16,000-Crore Navi Mumbai International Airport project
Page 29 REALTY DECODED Q4 FY’17
The Government of Karnataka has cancelled approvals granted to 8 Special Economic Zone (SEZ) projects, as developers have not made any significant progress to complete the projects
L&T Realty is likely to build around 3 million sq.ft. of commercial space in the recently approved SEZ in north Bengaluru, which is part of a 9 million sq.ft. mixed-use development
Government of Haryana has approved the proposed Mass Rapid Transport System (MRTS) between Gurgaon and Manesar to establish metro connectivity between the financial and industrial hubs
The Government of Haryana approved the extension of the Delhi Metro network to Kundli, covering a distance of 4.86 km. The estimated cost of the project is Rs.1,100 Crore
Source: PropTiger DataLabs Mar’17
Haryana Maharashtra KarnatakaNational
Major policy developments during the quarter
Government of Andhra Pradesh is planning to raise around Rs. 2,000 Crore through an issue of infrastructure bonds, to build a capital city spread across 35,000 acres of land acquired through an innovative land pooling model
Page 30 REALTY DECODED Q4 FY’17
22%
6%
Government of Andhra Pradesh is planning to build about 20 ‘walk-to-work-in-10 minutes’ towns along the Vizag-Chennai Industrial Corridor and the Chennai-Bengaluru Industrial Corridor
Kakinada SEZ, a subsidiary of GMR Infrastructure, has signed MoUs with firms interested in setting up manufacturing units; GMR seeks to develop an industrial zone spread over 8,500 acres and an all-weather, multi-cargo, deep water port with an estimated capacity of 16 million tonnes in the 1st Phase
The Government of Gujarat in its 2017-2018 budget, set a target of developing 45,000 affordable houses under PMAY and Mukhyamanti Saheri Vikas Yojana and an additional 100,000 houses under other schemes of the State Government
Ahmedabad Municipal Corporation (AMC) signed 279 MoUs worth more than Rs.30,000 Crore for undertaking of various realty projects, at the recently held Vibrant Gujarat Summit
Mahindra Lifespace Developers has signed an MoU with the Government of Gujarat to develop a 350-acre multi-product industrial park near Ahmedabad
The Yamuna Expressway Industrial Development Authority (YEIDA) is going to set up solar plants on 100 hectares of land as per the Uttar Pradesh Solar Policy-2013
The metro rail corridor from Noida to Greater Noida, is likely to be operational by December 2017, three months before the actual commissioning date. The 29.7-km Noida-Greater Noida has been constructed for around Rs. 150 Crore a kilometer
Bidhannagar Municipal Corporation (BMC) is planning to develop its jurisdiction area covering Salt Lake and Rajarhat as a smart green city
Two private companies have been selected to develop township projects in Rajarhat and near Amtala. Forum Properties Holding has been selected to develop the 80.29-acre 'Innovative Township' in Rajarhat while Ambuja Neotia Group will develop theme-based township near Amtala on 233 acres
Source: PropTiger DataLabs Mar’17
Uttar PradeshAndhra Pradesh West BengalGujarat
Major policy developments during the quarter
Page 31 REALTY DECODED Q4 FY’17
22%
In a bid to boost regional air connectivity, the Cabinet Committee on Economic Affairs (CCEA) has approved the revival of 50 unserved or underserved airports at a cost of Rs. 4,500 Crore over a period of three years starting FY’18
Source: PropTiger DataLabs Mar’17
The Ministry of Railways and Greater Chennai Corporation have decided to build a new bridge at Elephant Gate in Central Chennai, in place of the existing damaged structure with a 50:50 share of funding
The Chennai Port Trust and the Puducherry Government have signed an MoU for handling export and import cargo originating from Puducherry Port hinterland. This is likely to reduce cost of logistics and ease road congestion
Tamil Nadu
Others
Key transactions during the quarterLapis India Capital Advisors, a realty focused private equity fund, fully exited its investment in Sobha Palladian, a Bengaluru based residential project of Sobha Limited; the fund had invested Rs.50 Crore in a 50:50 partnership with Sobha and has exited with a total of Rs.98 Crore over a period of 4 years, starting 2013
Page 32 REALTY DECODED Q4 FY’17
22%
6%
Infosys Limited, acquired 3 acres of land in Bengaluru’s Electronics City for nearly Rs.33 Crore from Pradot Technologies
Godrej Properties has acquired a 12-acre land parcel along Sarjapur Road to develop around 1 million sq.ft. of residential space
Microsoft is likely to sign a nine-year lease deal with Prestige Group for a 6 lakh sq.ft. office space in Bengaluru. The new facility can accommodate approximately 6,000 employees
Signature Global, a real estate firm, is going to invest Rs.500 Crore for the development of two newly launched affordable housing projects comprising 2,405 units in Gurgaon
GIC has entered into exclusive bilateral negotiations with the promoters of DLF Limited to acquire the promoters’ 40% stake in DLF Cyber City, Gurgaon for Rs.12,000 Crore
Vatika Business Centre has entered the co-working spaces segment with the launch of its first office in Gurgaon at Vatika Atrium, Golf Course Road
Air India, as a part of its asset monetization programme, has started the process of leasing out 25,000 sq.ft. of office space at landmark C R Avenue locality of Central Kolkata
Indiabulls Asset Management Company's private equity arm is planning to raise Rs.1,500 Crore through its new real estate fund Dual Advantage Commercial Asset fund (DACA)
PepsiCo India has sold a 2.5-acre land parcel in the central suburb of Chembur to The Wadhwa Group, a real estate development firm, for a consideration of Rs.190-200 Crore
Lodha Group has launched its maiden investment fund with an initial corpus of Rs.50 Crore to invest in real estate tech ventures focused on smart city solutions and the overall realty sector
Oberoi Realty has acquired a 4-acre land parcel from GlaxoSmithKline, with plans to develop 1 million sq.ft. of mixed use project
Altico Capital has invested Rs.180 Crore in Sheth Corp’s residential project ‘Project Zuri’ in Thane
Source: PropTiger DataLabs Mar’17
KolkataBengaluru MumbaiGurgaon
Key transactions during the quarter
Infosys is planning to build an IT-operations facility on 28 acres of land parcel in Noida with a total investment of about Rs.5,000 Crore
Page 33 REALTY DECODED Q4 FY’17
22%
6%
Xander Group has acquired Express Trade Towers, a fully leased 500,000 sq.ft. IT park located in Noida, from IL&FS Investment Managers. The deal was valued at Rs.300 Crore
Honda India has acquired a 380-acre land parcel in Vithalapur, Gujarat, at a cost of Rs.1,000 Crores, to set up a new assembly line
Embassy Industrial Parks, a joint venture between Embassy Group and PE firm Warburg Pincus, is investing Rs.350 Crore to build a 1.1 million sq.ft. industrial park at Chakan, Pune
Marvel Realtors, a Pune based real estate developer, raised Rs.150 Crore in the form of structured debt from Piramal Fund Management; the company seeks to utilize the funds towards construction of a residential project in Pune
Phoenix Group has raised a credit line of Rs.300 Crore from Altico Capital. The funding is proposed to be utilized towards refinancing of some of its existing lenders and for the construction of two of its projects in Hyderabad
Source: PropTiger DataLabs Mar’17
Pune
Noida HyderabadAhmedabad
Key transactions during the quarter
Xander Group has invested around Rs.120 Crore in a plotted development project of VGN Property Developers in Ambattur, West Chennai
Page 34 REALTY DECODED Q4 FY’17
22%
L&T Realty has sold its 51 per cent stake in a township project at Siruseri Chennai for Rs.190 Crore to Pragnya Group
Source: PropTiger DataLabs Mar’17
Chennai
ANURAG JHANWAR, MRICSHead – Consulting and Data Insights [email protected]+91 - 99678 49666
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