Monthly Real Estate Monitor July 2013

Will INR Depreciation Lead

to Homecoming of NRI Real
Estate Investors?
Dubai is touted as the world-class property investment destination in
the Middle East. In 2012, real estate prices witnessed a 10% growth
y-o-y, as per the Dubai Land Development (DLD) authoritys data.
Also, the real estate transactions increased by 8% to AED 154
million. Interestingly, this recovery is backed by huge investments by
expatriates, particularly from India as nonresident Indians (NRIs) are
amongst the top five investors in the Middle East. However, with the
natural affinity towards home-biasness for India, and against the
recent depreciation of the Indian rupee (INR) against the US dollar
(USD), could the real estate investment decisions of the NRI
community be changed in favour of India?
Indian real estate prices have increased dramatically over the last
few years. Immediately following the global financial crisis (GFC),
Indian property prices witnessed a significant rise averaging 40
42% across all major markets, as per the database of Real Estate
Intelligence Services (REIS), Jones Lang LaSalle (refer to Figure 1).
Even in cities like Mumbai, where capital values were already high,
returns stood at 66% during the same period. Contrary to this,
DLDs data for Dubai suggests property prices witnessed a 65%
slump in the four-year period before 2012, thereby enabling us to
suspiciously ask whether a 10% rally in 2012 is all that startling.
Figure 1: Returns from Indian Residential Market
0%
10%
20%
30%
40%
50%
60%
70%
80%
Returns from Indian residential market in last four years
Capital Value % change during 2Q09-1Q13

Source: Real Estate Intelligence Services, Jones Lang LaSalle, India
More recently, INR has witnessed a significant 12% depreciation
against USD since the start of May 2013 until the end of June 2013,
thereby forcing its value down against all other currencies that are
pegged to USD, including the UAE dirham (AED). As a
consequence, INR has also depreciated against the AED by 12%
during the same period.
A simple back-of-envelope calculation suggests that for instance, if
a Dubai-based NRI invests AED 10 million in the Indian real estate
now (INR/AED at 16.4), and assuming only a conservative 15%
returns from the Indian real estate in the near term for key markets,
he could expect repatriated returns of over 27% (15% of returns
from real estate market plus 12% of currency appreciation),
assuming that the INR returns to its pre-May mean of 14.8/AED
(refer to diagram).

Merely the incremental return of 12%, owing to exchange rate
fluctuation, is comparable to the 1012% of total returns expected
by DLD in the near term from the investment in Dubai real estate.
Similar incremental returns can be expected from investments made
by NRIs from other parts of the Middle East where the local currency
is mostly pegged to USD (refer to Table-1).
Table-1: Incremental gains from INR exchange rate
UAE (Dirhams) 12.5%
Saudi Arabia (Rial) 12.4%
Oman (Rial) 11.8%
Kuwait* (Dinnar) 12.0%
*Partially pegged to the USD

Pulse Research Dynamics2012

It could be argued that expat-Indians may be favouring Dubai over
the Indian real estate on the basis of socio-economic and other
factors. According to media sources, Indian investors were buying
properties in Dubai as it offers relative political stability, world class
infrastructure, tax benefits, attractive prices and geographical
proximity.
However, a recent survey conducted by Sumansa Exhibitions, the
organiser of the Indian Property Show in UAE, portrays a different
picture. The survey reveals that NRIs place a higher intrinsic value
to property owned in India over that owned in Dubai or elsewhere.
Apart from strict visa rules in the Middle East region along with
certain regulatory obstacles in buying a property in the Emirates,
critical triggers that could help sustain their interest in Indian
property market include higher economic growth in India, improving
infrastructure, renewed political focus on timelines for new
infrastructure initiatives, rising demand for commercial space in the
market (leading to job creation), social infrastructure and price
trends. Putting these things into perspective, the recent fall of INR
could potentially act as a trigger amongst the NRI community in the
Middle East to switch their focus towards the properties back in
India.

Figure 1: Financial Indicators
Grade A Capital Value
Office Retail Residential
Delhi NCR
Mumbai
Bangalore
Chennai
Pune
Hyderabad
Kolkata
Rental Value

Deal of the Month
Jones Lang LaSalles Capital
Markets team has sold a
100% equity stake in the
holding firm of BlueRidge
Special Economic Zone
(SEZ) Phase I in Pune
for INR 4,500 million to IDFC



Whats New!!
The Union Cabinet of India
cleared the Real Estate
(Regulatory & Development)
Bill during the first week of June
2013. The bill aims to instill
transparency and maturity into
the residential sector that has
been so far unregulated.
Green Wall
Surat is moving towards
becoming the first city in India
to have a green building
council (GBC) that would
ensure that the new buildings
coming up will follow a green
building code.








Monthly Real Estate Monitor July 2013
Bangalore
Bangalore office market saw improvement in
transaction activity during June compared with the
previous month. The combination of stable demand
and restricted supply kept the citys overall vacancy
rate low during the month. Interestingly, the IT/ITES sector
accounted for the majority of leasing, with major companies taking
up space in the quarter including Disney, Amazon, Honeywell,
Synergy and TP Vision. The city witnessed the completion of Global
Village Technology Park Phase III Tower 3, Kalyani Platina Oak,
Kalyani Platina Crystal and Nagarjuna Garnet. Rents continued to
remain stable across the city. However, capital values marginally
appreciated because of improved demand and investor sentiments.

Bangalores retail market saw continued steady
consumer demand in June. As a result, the vacancy
in malls reduced marginally. In addition, the high
streets continued to see modest absorption in the
month. Some of the major transactions in the city included leasing
by Starkes, FabIndia, McDonalds, KFC and Pepe Jeans. Rents
continued to remain stable over the month. Capital values also
remain unchanged because of poor investor sentiments towards
buying retail property.
Residential market saw modest absorption during
June in Bangalore. The city also witnessed an
increased number of launches over the month, with
the notable ones including Prestige IVY Terraces by
Prestige Group, Sobha Santorini by Sobha Developers and DNR
Atmosphere by DNR Corp. Rents remained stable over the month.
However, capital values appreciated marginally across various
submarkets because of increased sales volumes and marginal
upsurge in price at most projects that are nearing completion.
Office Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
CBD 4855 5,5006,500
Old Airport Road 6065 6,0007,000
Outer Ring Road (East) 4652 4,7006,000
Old Madras Road 3034 3,0003,500
Electronic City 2628 2,5003,000
Retail Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Koramangala 80150 9,00016,000
Indiranagar 90180 12,00018,000
New BEL Road 5080 6,00010,000
Commercial Street 175250 16,00020,000
Jayanagar 80120 7,00015,000
Residential Rents Capital Value
Key Precincts
INR per month
for a 1,000 sq ft
two-BHK
apartment INR per sq ft
Old Madras Road 12,00016,000 5,000 6,000
Indiranagar 18,00020,000 10,00020,000
Bellary Road 10,00014,000 3,0007,000
Hosur Road 10,00014,000 3,0005,500
Whitefield 13,00016,000 3,0007,000
Tumkur Road 7,00011,000 3,0005,000
Kanakapura Road 8,00012,000 3,0005,500
Mysore Road 8,00010,000 2,8003,500
INFRASTRUCTURE ONGOING
>> Having achieved considerable progress in Phase I and ready
to execute Phase II of Namma Metro, Bangalore Metro Rail
Corporation Ltd (BMRCL) is preparing to take up Phases II-A
and III. After completion, the proposed new network of 150 km
will virtually throw a metro grid around Bangalore City besides
connecting key points such as the Bengaluru International
Airport, Hebbal and Magadi Road. After the completion of all the
three phases, Bangalore will have a respectable 265 km of metro
network. The state governments high-power committee has
already cleared a pre-feasibility study on the proposed network,
said a BMRCL statement.






Monthly Real Estate Monitor July 2013
Chennai

After a few months of slowdown, office leasing
gained momentum during the month of June. The
majority of supply in 2013 would be coming from the
most preferred office locations of pre-toll Old
Mahabalipuram Road (OMR). Important to mention, the new office
supplies such as Ramanujan IT City and SP Infocity are gaining
steady demand from the occupiers. Apart from the OMR, SBD
locations such as Guindy and Mount-Poonamallee Road (MPR) also
witnessed healthy demand in June. Notable new occupiers in this
submarket included Visionary RCM, Solartis and iGold
Technologies. Average office rents in Chennai saw marginal
increase on the back of improving demand.
The high streets of Chennai continued to witness
healthy leasing activity with electronics showrooms
such as Poorvika and Samsung, as well as several
quick serving resturant brands that opened in June.
The city also witnessed the opening of Spencers hypermarket in
Velachery. With the new malls operating with nearly full occupancy,
retailers are chasing potential properties in the high street locations
such as T Nagar, Adyar and Velachery, supporting the rental growth
in the high streets.
Residential sales remained restricted in Chennai.
However, the number of new launches improved
during the month of June. Some of the prominent
launches during the month were Prince Highlands in
Iyyapanthangal, Kgeyes Samyuktha in Madambakkam and VGN
Dynasty in Melapakkam. In addition, Marutham Group launched two
new projects near Tambaram and Casa Grande and added one
more villa project named Avalon in Perumbakkam. Capital values
and rents remained largely unaltered during the month.




Office Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Mount Road 6090 9,00015,000
RK Salai 70100 10,00015,000
Pre-toll OMR 4062 5,0006,500
Post-toll OMR 2535 3,5005,000
Guindy 4060 6,0009,000
Ambattur 2032 3,2504,300
Retail
Rents
(High Streets) Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
T. Nagar 120180 12,00015,000
Nungambakkam 130150 13,00016,000
Velachery 80120 10,00012,000
Pre-toll OMR 5070 8,00011,000
Anna Nagar 110140 11,00013,000
LB Road (Adyar) 110130 10,50013,500
Residential Rents Capital Value
Key Precincts
INR per month
for a 1,000 sq ft
two-BHK
apartment INR per sq ft
Adyar 20,00030,000 11,00017,000
Medavakkam 7,00014,000 3,6005,250
Tambaram 6,00012,000 3,5004,500
Anna Nagar 15,00025,000 9,00014,000
Porur 5,00010,000 3,8006,200
Sholinganallur 9,00012,000 4,2505,800



INFRASTRUCTURE ONGOING
>> Thirumazhisai, located along the Chennai-Bangalore
Highway, will soon get a multistoreyed industrial estate at a
cost of INR 200 million. In addition, the state government has
also planned to create a land bank of 2,000 acres to promote
the micro-industries in the state.





Monthly Real Estate Monitor July 2013
Delhi
The demand for office space was showing signs of
improvement in June with occupiers looking to close
the transactions. The major transactions during the
month included GroupM Media and Manpower
leasing space in Cyber City-Gurgaon, Samsung taking up space in
Noida Expressway and SYSTRA renting space in the SBD. Unitech
Infospace, Sec 48, Block 4 in Gurgaon (Sohna Road); Unitech
Infospace, Gurgaon Phase II, Building Six on National Highway 8,
Dundahera; and Ascendas OneHub Phase I commenced operation
in June with moderate to low occupancy. Rents increased in DLF
Cyber City, MG Road and Golf Course Road within the given range.
However, capital values remained unaltered across all the
submarkets.
The retail demand in Delhi was sluggish because of
the constraints in the availability of good space.
Retailers were mostly active with the pre-
commitment of space in the upcoming malls that
would offer the promise of good location, design, branding and
business potential. Some of the major transactions in June included
Yauatcha and Burberry Brit both leasing space in Prime South,
Starbucks renting space in Prime Others and Croma taking up
space in the Noida suburbs. TDI Town Square Mall at Nehru Place
Metro Station in Prime Others submarket commenced operation
with high occupancy. On the contrary, I Mall in the Greater Noida
suburbs started with moderate occupancy in June. Rents increased
marginally in Prime South and Prime Others submarkets.
Interestingly, capital values continued to remain stable throughout
the city.
The residential demand witnessed signs of
slowdown. Meanwhile, studio apartments performed
well because of the low ticket size being associated
with it. Over the month, new launches were noted
only in Noida, Ghaziabad and Faridabad, while the prominent
launches included ATS Pristine by ATS Infrastructure in Noida,
Palm Resort by MR JKG in Ghaziabad and Aravali One by
Maxheights Infrastructure in Faridabad. Rents remained stable in
June. Meanwhile, capital values increased in growth corridors and
the rise in values varies with projects.









Office Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Barakhamba Road 170-400 28,000-35,000
Jasola 110-170 17,000-21,000
DLF Cybercity 75-78 NA
MG Road 115-140 17,000-19,000
Golf Course Road 85-98 12,500-15,000
Sohna Road 47-55 6,500-8,000
Retail Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
South Delhi 180-300 24,000-32,000
West and North Delhi 140-230 15,000-23,000
Gurgaon-MG Road 140-270 17,500-23,000
Rest of Gurgaon 60-100 8,000-14,000
Noida 130-220 14,000-25,000
Ghaziabad 90-150 10,500-16,000
Residential Rents Capital Value
Key Precincts
INR per month for
a 1000 sq ft 2BHK
apartment INR per sq ft
Golf Course Road 22,000-32,000 12,000-16,000
Sohna Road 15,000-20,000 5,800-7,500
Golf Course Extension Road 16,000-22,000 8,000-9,500
NH 8 14,000-19,000 4,500-6,500
Dwarka Expressway NA 5,500-7,500
Noida-Greater Noida
Expressway 12,000-14,000 4,000-6,100
Noida City 12,000-14,500 4,700-6,000
Indirapuram 10,000-12,000 4,200-5,000
NH 24 7,000-9,000 2,400-3,200
INFRASTRUCTURE ONGOING
>> The fate of the proposed metro link between the Noida City
Centre and the Greater Noida Bodaki is still hanging in
balance nearly after two years of its conception. With two
industrial development authorities, Noida and Greater Noida
are struggling to raise about INR 50 billion required to build the
29 km metro project. Important to mention that once built, this
project would also be beneficial for the centres ambitious
Delhi-Mumbai Industrial Corridor (DMIC) project.







Monthly Real Estate Monitor July 2013

Hyderabad
Leasing volumes improved in June. Again most
leases were focused on Hitec City where good
quality leasable space is fast reducing. Leasing
activity was more focussed in Hitec in June was
followed by CBD submarket. There were also a few leases closed in
Gachibowli submarket. Interestingly, the Pocharam submarket again
witnessed a marginal leasing activity as SDG Software leased
space. Key transactions in June included Cytel, WHISHWORKS,
Apps Associates, QSSI and PARAXEL leasing space at Hitec City,
Adap.TV, NetElixir, Centrica and Metlife taking space in the CBD;
and IL&FS and Biological E securing space in SBD. Salarpuria
Cyber Park, which is almost fully occupied, commenced operations
in June. There were many occupiers who vacated spaces either to
consolidate or to relocate, increasing the overall vacancy in the city.
Therefore, average market rents and capital values remained stable
over the month.
Retailers continued to focus on leasing high street
space for ready-to-move-in spaces while pre-
committing spaces in the upcoming malls. Key
transactions in June included Chhabra 555 and Axis
Bank leasing space in Banjara Hills; F Studio taking space at
Nagarjuna Circle; and Pai Electronics, W, Khazana and Malabar
Gold renting in Dilshuknagar. Pre-leasing continued in few
upcoming malls. Rents and capital values remained stable over the
month.
Residential sales remained stable in June. New
launches also remained stable over the month, with
projects including a villa project by Sri Srinivasa
Constructions called Esmeralda Fortune in
Kondapur and an apartment project by PNR Infra called High Nest
in Kukatpally. Rents and capital values continued to increase
marginally across all the submarkets as newly launched residential
projects were sold at a price higher than the market average over
the month.













Office Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Begumpet 4555 4,5006,500
Banjara Hills 5060 4,5007,500
Hitec City 3642 4,0005,200
Gachibowli 3640 4,0005,000
Uppal 2535 3,0004,000
Shamshabad 2025 3,0004,000
Retail Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Banjara Hills 100130 10,00013,000
Jubilee Hills 110140 11,00014,000
Secunderabad 80100 8,00010,000
Hitec City 100130 10,00013,000
Kukatpally 100120 10,00012,000
Dilshuknagar 100120 10,00012,000
Residential Rents Capital Value
Key Precincts
INR per month for a
1,000 sq ft 2BHK
apartment INR per sq ft
Banjara Hills 20,00025,000 7,50014,000
Begumpet 12,00016,000 4,0005,500
Kondapur 8,00016,000 3,2005,000
Tellapur 6,00012,000 2,8003,500
Kukatpally 7,00010,000 3,5003,800
Miyapur 5,0008,000 2,4003,500
INFRASTRUCTURE ONGOING
>> Hyderabad Metro Rail (HMR) update in June: 28 traffic
junctions will be involved in situ construction of girders to cover
large spans which are more than 112 ft.





Monthly Real Estate Monitor July 2013
Kolkata
Kolkata office market witnessed moderate activity as
transactions which were going on for a long time
concluded during June. The vacancy increased
marginally on the back of new completions. Infinity
IT Lagoon and Ecostation, both at Salt Lake, commenced
operations in June. The major transactions in the month included
Jacobs Engineering Group and Reliance, both leasing space in Salt
Lake City. Rents were under pressure amidst large amount vacancy
across the peripheral submarkets of the city. Capital values
appreciated marginally in the select precincts of CBD. However,
they remained unaltered across all other submarkets in the city.
Retail activity in the malls of the city continued to
remain sluggish. As a result, vacancy levels
remained unchanged in the organised retail stocks
of the city. Important to mention, Spencers Galleria
would become operational in the coming months with good
precommitments from national and international retailers.
Meanwhile, the high streets of the city witnessed moderate demand
for retail space with the absence of quality spaces in organised
malls. Reliance 4G expanded its outlets in various parts of the city.
Rents continued to remain stable in most parts of the city amidst
marginal appreciation in select precincts. Capital values inclined in
select precincts of the CBD.

Residential demand in the city was stable in June for
mid and low segments. However, the luxury
category witnessed a dip in absorption. The notable
launches in June included South Winds by Srijan
Group at Rajpur; Mounthill Essence and Mounthill Fusion by
Mounthill Group, both at Rajarhat; and Godrej Prakriti Phases III and
IV by Godrej Properties near Barrackpore. Rents and capital values
both remained unchanged in the city.




Office Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Park Street 110 150 13,500 23,000
Topsia 75 90 9,000 11,000
Kasba 70 90 9,000 11,500
Salt Lake Sector V 40 50 4,400 5,400
Rajarhat & New Town 32 40 3,500 4,800
Retail Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Elgin Road 275 325 24,000 30,000
Park Street (high street) 300 350 24,000 34,000
Salt Lake City 175 225 15,000 20,000
Prince Anwar Shah
Road 120 150 12,000 15,000
Rajarhat & New Town 50 80 6,000 8,000
Gariahat (high street) 200 250 18,000 22,000
Residential Rents Capital Value
Key Precincts
INR per month
for a 1,000 sq ft
2BHK apartment INR per sq ft
Alipore 43,000 50,000 14,000 23,500
Prince Anwar Shah
Road 18,000 30,000 7,000 14,000
EM Bypass 15,000 25,000 5,000 11,000
Lake Town 12,000 19,000 3,500 7,500
Behala 8,000 14,000 3,000 5,500
Howrah 7,000 9,500 2,700 5,000
New Town (AA I, II & III) 11,000 18,000 3,300 6,300
Rajarhat 9,000 15,000 2,500 4,900


INFRASTRUCTURE ONGOING
>> The Calcutta high court approved the land acquisition for
the East-West Metro at Bow Bazar, doing away with the need
for a route realignment that threatened to further delay the
project and push up costs.
>> With the Civil Aviation Ministry fast-tracking the
management privatisation of Kolkata and Chennai airports,
the Airports Authority of India (AAI) has set up a cell to execute
Public Private Partivipation (PPP) process to operate and
maintain these and other aerodromes. The Key Infrastructure
Development (KID) cell that was in existence during the
privatisation of Delhi and Mumbai airports would handle the
public-private partnership process for Kolkata and Chennai
airports, which are currently owned and managed by the AAI,
official sources said.





Monthly Real Estate Monitor July 2013

Mumbai
Office leasing continued exhibiting improvement over
the month of June. Projects in the advanced stage of
construction recorded moderate pre-commitments.
Companies were opting for consolidation and
relocation, over the expansion. Banking, financial services and
insurance (BFSI) and IT industries remained the driving force behind
the robust transactions in the month. Vacancy rates reduced
minimally in June across select submarkets, except in the eastern
suburbs. Important to mention, eastern suburbs submarket
witnessed a few tenants relocating to relatively cheaper submarkets
to avail lower cost advantage. Major transactions included Apple Inc
leasing space in SBD Bandra Kurla Complex (BKC) and Tata AIA
renting space in SBD Central. Kalpataru Prime at Thane submarket
commenced operation in June. Rents and capital values in the
western suburbs submarket rose slightly. However, other
submarkets saw no change in either rents or capital values over the
month.

Organised retailing continued to witness moderate
demand over the month. Categories such as clothing
and F&B remained to be the driving force behind
demand generation. Interestingly, high street retail
space in the suburbs, especially in Borivali and
Ghatkopar saw moderate transaction activities. A select pool of
occupiers has started considering mixed-use project to open up the
outlets. However, vacancy in the malls remained stable across the
month. Major transactions in June included Cottonworld renting
space at Oberoi Mall in the suburbs and Reliance Digital leasing
space at Viva City Mall in Thane. Meanwhile, Viva City Mall
commenced operation in the month with healthy pre-commitment
levels. It houses high-profile tenants from all the retail categories.
Rents and capital values in the submarkets, such as the Prime
North and the suburbs, increased marginally.
In June, the residential sector in Mumbai witnessed
sluggish demand primarily because of significant
increase in prices. Hence, most of the projects that
were launched during the month saw smaller
configurations to improve the offtake in sales. New launches
included Acme Boulevard in Andheri by Acme Group, Bougainvillea
in Kalina and Happy Homes in Vile Parle by Richa Realtors. Rents
continued to remain stagnant during the month. In addition, capital
values remained stable as the sales activity witnessed a slowdown
with the start of the monsoon season.
Office Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Lower Parel 155185 19,00023,000
BKC
260360 25,00035,000
Andheri 100150 9,00015,000
Goregaon-Malad 80105 8,00010,000
Wagle Estate 5065 5,0006,000
Thane-Belapur Road 4560 5,1006,000
Retail
Rents
(mall space) Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Lower Parel
260380 22,00032,000
Malad
160250 12,50020,000
Ghatkopar
140225 10,10018,000
Mulund
125200 10,00016,000
Thane
100170 8,00014,000
Navi Mumbai 75150 7,00012,000
Residential Rents Capital Value
Key Precincts
INR per month for a
1,000 sq ft 2BHK
apartment
INR per sq ft
Lower Parel 87,00095,000 24,00035,000
Wadala 40,00055,000 14,50019,100
Andheri 35,00050,000 11,50021,000
Ghatkopar 35,00048,000 9,50015,000
Ghodbunder Road 12,00021,000 5,5009,000
Kharghar 12,00020,000 4,8008,000








INFRASTRUCTURE ONGOING
>> A signal-free drive between Chembur and South Mumbai was
made possible as 14 km of the long-awaited Eastern Freeway was
opened to traffic. The traffic police would have little supervision over
the 17 km long bridge (3 km to be opened in December 2013) and
the freeways feeder and arrival routes, include roads leading to the
main entrance and exit points.





Monthly Real Estate Monitor July 2013

Pune

The office leasing activity in Pune increased in June,
decreasing the vacancy levels marginally. Major
transactions over the month included LSI Logic
leasing space in Yerwada, Bajaj Finance renting
space in Viman Nagar and Amdocs taking up space in Hadapsar.
The IITP Phase I located in Hinjewadi is likely to be operational in
the next twothree months with good pre-commitments. Rents and
capital values rose marginally in select submarkets, such as Kharadi
and Hadapsar, both of which witnessed very low vacancy in most of
the buildings. However, both rents and capital values remained
unchanged in other parts of the city.
Leasing activity continued to be sluggish in the malls
in Pune. The citys organised retail stock also
remained unchanged on the back of absence of new
completions. Rents and capital values both were
stable during the month of June. It is noteworthy to mention,
Season's Mall in Hadapsar and Prime Mall in Pimpri would likely to
be operational by 2H13.
Demand for residential units in Pune continued to be
stable in June. Major launches during the month
included Kumar Pinakin by KUL Group in Baner and
Ayaan by Gandhi Bafna Constructions in Wagholi.
Rents and capital values both remained stable during the month of
June.






Office Rents Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
Hinjewadi 3440 4,0005,500
Hadapsar 4050 5,0006,000
Bund Garden Road 6070 6,5007,500
Viman Nagar 5060 6,0007,000
SB Road 5575 6,5007,500
Koregaon Park 6070 6,5007,500
Retail
Rents
(High Streets) Capital Value
Key Precincts
INR per sq ft per
month INR per sq ft
MG Road 100150 10,00015,000
Bund Garden Road 90130 9,00013,000
FC Road 100150 10,00015,000
JM Road 100150 10,00015,000
DP Road 90130 9,00011,000
SB Road 80130 8,00011,000
Residential Rents Capital Value
Key Precincts
INR per month for
a 1,000 sq ft two-
BHK apartment INR per sq ft
Wakad 10,00012,000 4,5005,500
Kharadi 11,00015,000 4,8005,800
Hadapsar 12,00016,000 5,0006,000
Hinjewadi 9,00011,000 4.0005,500
Undri 9,00012,000 3,8004,800
Pimpri-Chinchwad 8,00012,000 4,0005,000





INFRASTRUCTURE ONGOING
>> The civic administration of Pimpri Chinchwad Municipal
Corporation (PCMC) would start major construction works from
November onwards, while ward-level projects would begin
from October onwards. The implementation of small
development works in wards, such as laying drainage lines,
laying footpaths and tarring of internal roads, has not started
yet, despite the PCMC making budgetary provision for it.










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The firm was named the Best Property Consultancy in India (5 Star Winner) at the International Property Awards - Asia Pacific for 2012-13.
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For more information about our research

Ashutosh Limaye
Head, Research and REIS
ashutosh.limaye@ap.jll.com
+91 98211 07054

Trivita Roy
Assistant Vice President,
Research trivita.roy@ap.jll.com
+91 40 4040 9100

Research Dynamics 2013
Pulse reports from Jones Lang LaSalle are frequent updates on real estate market dynamics.














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