The Connect Q1 2020

VESTIAN
QUARTERLY
NEWSLETTER
THE CONNECT
Q1 2020
INVESTMENT & CONSULTANCY SERVICES
EXECUTIVE SUMMARY
Economy
 Growth rate of the Indian economy reduced to 4.7% in the October-December quarter from
5.6% in the corresponding period of FY2019, the slowest pace in economic growth recorded
Content
in 27-quarters.
 Faced with the current COVID-19 crisis, economists estimate severe contraction in the
country's GDP.
 However, a faster rebound is envisaged in FY22 compared with other economies.
India:  The RBI has stepped in by reducing key interest rates and brought in targeted long-term
Economic Indicators repo operations to ease liquidity in the system.
India Real Estate Market Office Market

Overview  The five major cities of Bengaluru, Mumbai, Chennai, Hyderabad and Kolkata saw absorption
of approximately 9.18 million sqft office space during Q1 2020, depicting a decline of just
Bengaluru 3% over the absorption observed in Q1 2019.
 Majority of the absorption was observed during the first two months of Q1 2020, before the
spread of COVID-19 outbreak and the ensuing lockdown in March, leading to the deferment
Chennai
of several large-scale leasing decisions.
 During the quarter, Bengaluru led the way with 38% share of the total absorption in these
Hyderabad five cities, followed by Mumbai at 26%, while Hyderabad accounted for 18% share.
 The new office space completions for Q1 2020 was recorded at 7.5 million sqft in the five
Mumbai cities, depicting a significant dip of 22% as compared with the quantum that had become
operational a year ago in Q1 2019.
Kolkata Residential Market

 Approximately 16,318 new residential units were launched overall in the cities – Bengaluru,
Outlook Chennai, Hyderabad and Kolkata, during Q1 2010.
 There was a decline of 12% witnessed in the number of launches in Q1 2020 when compared
with the number of units launched in the corresponding period in 2019.
Oﬃce: Location Master
 Residential demand, in the short term, would be impacted with people postponing their
buying decisions owing to mounting fears of job loss and pay cuts.
Residential: Location Master
Retail Market
 With the COVID-19 pandemic outbreak, the industry may take at least 9-12 months to
recover from its aftermath.
 Several mall owners across the country are waiving off rentals for retailers and restaurants
during the entire lockdown period, providing relief to a segment that is already battered due
to daily loss of revenue.
Vestian Quarterly Newsletter Q1 2020 2

INDIA: ECONOMIC INDICATORS
GDP growth recorded at 4.7% during Q3 FY2020; last quarter GDP growth could fall further owing
to the impact of COVID-19
 Growth rate of the Indian economy reduced to 4.7% in the October-December quarter from 5.1% in the
previous quarter and 5.6% in the corresponding period of FY2019.
 This has been the slowest pace of economic growth recorded in 27-quarters, largely attributed to contraction
in manufacturing sector output.
 Faced with the current challenges, the Indian economy is expected to witness a lower growth rate during the
last quarter of the current fiscal.
Figure 1: GDP Growth Trend
10 9.4
9 8.7 9.1 8.9
8 7.9 8
8 7.7 7.7
7.3 7.5
7.1
GDP Growth (%)
7 6.5 7.6
7.2 6.8
6 6.1 6.2 5.8
6.4 5.6
5.9 6
5 5.6
5.3 5.1 4.7
4
3
2
1
0
F Y2014
F Y2014
F Y2014
F Y2014
F Y2015
F Y2015
F Y2015
F Y2015
F Y2016
F Y2016
F Y2016
F Y2016
F Y2017
F Y2017
F Y2017
F Y2017
F Y2018
F Y2018
F Y2018
F Y2018
F Y2019
F Y2019
F Y2019
F Y2019
F Y2020
F Y2020
F Y2020
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Source: Central Statistical Organization, Government of India
Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 3

COVID-19 outbreak: Lower growth forecasts for FY21, but rebound envisaged soon after
Figure 2: India Growth Forecasts by Key Agencies
7.5%
7.4%
REAL GDP, ANNUAL PERCENTAGE CHANGE
6.7%
6.5%
6.2%
5.8%
5.8%
5.3%
4.0%
3.5%
2.5%
2.0%
1.9%
1.8%
0.8%
ADB FITCH MOODY'S S&P GLOBAL IMF
Previous Growth Forecast for FY21 Revised Growth Forecast for FY21 Growth Forecast for FY22
Source: Compiled by Vestian Research
 With the spread of COVID-19 continuing unabated, growth is likely to remain subdued in FY21.
 Most multilateral agencies and credit rating agencies have revised their FY21 growth projections for India,
considering the negative impact of travel restrictions, supply chain disruptions, subdued consumption and
investment levels on both the global and the Indian economy.
 Significantly, although the agencies have slashed their FY21 projections heavily, India, along with China, are
likely to be considered exceptions amongst the developing countries. These two economies are expected to
continue to observe a slowdown before recovering substantially in FY22.
India: Down But Not Out
 Lowered growth projections for FY2021, yet faster rebound envisaged in FY2022 compared with other
economies.
 A resilient economy, primarily driven by the services sector.
 Sufficient foreign reserves buoyed by drop in oil prices.
 One of the top countries receiving foreign funds from NRIs, thus maintaining currency balance.
 Proliferation of skilled manpower to help businesses thrive.

India Inflation Rate eases to 4-Month Low in March; industrial output rises to 4.5% in February, likely
to drop in March over COVID-19 crisis
Figure 3: Inflation based on WPI & CPI
10
Year-on- Year growth (%)
0
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jul-15
Jul-16
Jul-17
Jul-18
Jul-19
Oct-15
Oct-16
Oct-17
Oct-18
Oct-19
Apr-15
Apr-16
Apr-17
Apr-18
Apr-19
-2
-4
-6
WPI CPI
Source: Monthly Economic Report, Department of Economic Affairs, Government of India
 The index of Consumer Price Inflation (CPI) fell to a four-month low of 5.91% year-on-year in March 2020
from 6.58% in the previous month, and slightly below market expectations of 5.93%.
 Wholesale Price Index (WPI) in India depicted the lowest rate since November last year, increasing by 1%
year-on-year in March 2020, following a 2.26% gain in the previous month and below market expectations of
a growth of 2%.
 Meanwhile, the Index of Industrial Production (IIP) growth accelerated to a seven-month high of 4.5%
year-on-year in February 2020 from 2.1% in the previous month, owing primarily to a rebound in
manufacturing activity, surpassing market expectations of 3.2%. This signifies that some aspects of the
economy were on the path of gradual revival prior to the escalation of the Covid-19 outbreak.
 However, growth prospects for March remain gloomy with the COVID-19 outbreak leading to lockdowns, that
are likely to result in sizable industrial contraction in March 2020.

Repo rate reduced to its lowest level at 4.40% to mitigate Covid-19 impact; prime lending rate reduced
to 12.90%
Table 1: Key Policy Rates
Key Rates Jan-20 Feb-20 Mar-20

PLR* 13.20% 13.20% 12.90%
Repo Rate 5.15% 5.15% 4.40%
Reverse Repo Rate 4.90% 4.90% 4.00%
CRR 4.00% 4.00% 3.00%
Source: www.rbi.org.in, *www.sbi.co.in
Figure 4: Repo Rate Trend
7.0% 6.5%
6.3% 6.3%
6.0% 6.0% 5.8% 5.8%
6.0%
5.4% 5.4% 5.2% 5.2% 5.2% 5.2% 5.2%
5.0%
4.4%
4.0%
3.0%
2.0%
1.0%
0.0%
Ja n-19 Feb-19 Ma r-19 Apr-19 Ma y-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Ja n-20 Feb-20 Ma r-20
Repo Rate
Source: www.rbi.org.in
 In March 2020, the State Bank of India revised its Benchmark Prime Lending Rate to 12.9%, down from 13.2%
in December 2019.
 The RBI announced a whopping 75 basis points cut in the repo rate, bringing it down to 4.4%.
 This is the lowest level that the repo rate has thus observed. Before this, the lowest point witnessed was at
4.74% in April 2009 on account of the Global Financial Crisis.
 The central bank also cut the cash reserve ratio or CRR by 100 basis points to 3% with effect from March 28,
unlocking INR 1.37 lakh crore primary liquidity in the banking system.
 The reverse repo rate was lowered by 90 basis points in March and another 25 basis points in April, bringing it
to 3.75%, making it less attractive for commercial banks to park cash with RBI.

BSE Sensex observes a decline of 30% and BSE Realty sees 46% dip during the period
January-March 2020
Figure 5: Performance of BSE Sensex
45000
40000
35000
Points
30000
25000
20000
15000
10000
5000
0
01-Jan-20
01-Jan-19
01-Jul-19
01-Jun-19
01-Oct-19
01-Aug-19
01-Dec-19
01-Sep-19
01-Nov-19
01-Apr-19
01-Feb-20
01-Feb-19
01-May-19
01-Mar-20
01-Mar-19
Source: www.bseindia.com
 The BSE Sensex touched a high of 41,953 points mark on January 14, 2020, posting its best during the
quarter January-March of the year.
 However, heavy toll was observed in the financial markets owing to increase in COVID-19 cases in India and the
resultant lockdown.
 Decline observed in BSE Sensex during Q1 2020 (14th January peak to 31st March) – 30%
Figure 6: Performance of BSE Realty Index
3000
2500
2000
Points
1500
1000
500
Source: www.bseindia.com

 BSE Realty index touched 2,526 points on January 31 - its highest peak during the period January-March
2020.
 With markets reeling under the effects of the COVID-19, the realty index suffered a significant decline in
March.
 Decline observed in BSE Realty during Q1 2020 (31st January peak to 31st March) – 46%
Business optimism for April-June quarter decreases by 37% YoY; optimism levels for net sales and
new orders affected by the lockdown to contain COVID-19
 According to Dun & Bradstreet Composite Business Optimism Index for the upcoming period April-June,
business optimism stood at 49.4%, plummeting to a record low, the dip in business sentiment attributed to the
heightened uncertainty around the impact of COVID-19.
 The index registered a decline of 37% as compared to the same period a year ago.
 The impact of COVID-19 triggered strong demand shocks and led to a fall in confidence levels, the optimism for
new orders recorded at 24% - a decrease of 39 percentage points as compared to April-June 2019.
FDI equity inflow in India during April-December 2019 at USD 36.7 billion – 10% growth YoY; total FDI
inflow of USD 15.9 billion recorded during October-December 2019 – 13% growth QoQ
Figure 7: Total FDI Inflows into India
25000
20000
USD Million
15000
10000
5000
Source: www.dipp.nic.in

 According to Department of Industrial Policy and Promotion, India received FDI equity inflow of USD 36.77
billion during the period April-December 2019, as compared with USD 33.49 billion in the corresponding
period in 2018, depicting a growth of 10%.
 Sectors which attracted maximum foreign inflow during the nine-month period include services (USD 6.52
billion), computer software and hardware (USD 6.35 billion), telecommunications (USD 4.29 billion),
automobile (USD 2.50 billion) and trading (USD 3.52 billion).
 Singapore continued to be the largest source of FDI in India during April-December period of the current fiscal
with USD 11.65 billion worth of investments.
 Meanwhile, the total FDI inflow during the period October-December 2019 was recorded at USD 15.93 billion,
signifying an increase of 13% growth on a quarter-on-quarter basis and 3% growth on an annual basis.
PE investments in India recorded at USD 5.9 billion during January-March – a 36% decline YoY; real
estate sector accounts for announced investments of over USD 1,144 million during the quarter
 According to data from Venture Intelligence, Private Equity-Venture Capital (PE-VC) firms invested USD 5.9
billion across 164 deals during the quarter January-March 2020, 36% lower than USD 9.2 billion (across 249
transactions) during the corresponding period last year.
 The quarter witnessed 14 PE-VC investments worth USD 100 million or more, down from 20 in the same period
last year.
 The largest PE-VC investment announced during the quarter was the USD 567 million takeover of power
generation company Rattan India Power by Goldman Sachs and Varde Partners.
 On the real estate front, the sector attracted announced investments of over USD 1,144 million across four
deals during the period January-March 2020.
 Significantly, all the four deals entailed investments in the commercial sector.
 The largest deal inked during the quarter was a joint venture between Bengaluru-based RMZ Corp and Japan’s
Mitsui Fudosan, worth USD 1 billion to set up commercial office spaces in Bengaluru, Mumbai and Delhi. This is
the Japanese company’s maiden investment in the Indian real estate market.
Table 2: PE Investments in Real Estate Sector, Q1 2020
Approx. amount
Investor Developer/Partner Sector Location
(in USD million)
Ascendas Arshiya Limited Commercial Khurja 3.25
NYLIM India Max Estates Commercial Noida 56.05
Mitsui RMZ Corporation Commercial Bengaluru, Mumbai and Delhi 1000
Goldman Sachs Vatika Group Commercial Gurgaon 85
Source: Vestian Research, Venture Intelligence

INDIA REAL ESTATE MARKET OVERVIEW
The Indian real estate sector has grown by leaps and bounds in the past two decades. It has passed through a number
of challenges that came its way, each helping in shaping the industry. An onslaught of policy changes since 2016 led
the industry to adapt to a radical regulatory environment and amend itself to a distinct market altogether. Coupled
with rapid technological progress, discerning end-user behaviour and the emergence of new asset classes, the real
estate industry provides for one of the powerful growth stories in the country.
India Real Estate: The growth story so far
Pre - 2008
Proliferation of IT/ITeS companies, global offshoring of
projects to India, residential market sees growth
2008 - 2010
Global financial crisis, substantial negative impact on
market, slowdown in residential market
2011 - 2015
Gradual market recovery, fast-paced growth of the
e-commerce sector, logistics & warehousing sectors
Increase in PE investments, commercial markets rule,

regulatory changes, global headwinds regarding trade
2016 - 2019 wars and Brexit, NBFC crisis, residential market
slowdown, emergence of co-working & co-living
Market size expected to grow to USD 180 billion, the
2020 industry hit by COVID-19 crisis, disruption across the

sector, RBI cuts repo rate

Q1 2020 UPDATES
Office Market: 9.18 million sqft office space absorption across the five major cities in Q1 2020 –
3% decline YoY; supply limited to 7.5 million sqft – 22% decline YoY
Figure 8: Absorption of Office space Q1 2020 Vs Q1 2019
4.5
3.95
4
3.53
3.5
3
2.39
Mn sqft
2.5 2.18
1.83
2 1.64
1.47
1.5 1.2
1
0.35
0.5 0.15
0
Bengaluru Chennai Hyderabad Mumbai Kolkata
Source: Vestian Research Q1 2020 Q1 2019
 The five major cities of Bengaluru, Mumbai, Chennai, Hyderabad and Kolkata saw absorption of
approximately 9.18 million sqft office space during Q1 2020, depicting a decline of just 3% over the absorption
observed in the corresponding period in the previous year.
 With the exception of Mumbai and Chennai, the office markets of the other three cities saw relatively reduced
absorption in Q1 2020, as against the potential harboured.
 Majority of the absorption was observed during the first two months of Q1 2020, before the COVID-19
outbreak and the ensuing lockdown in the month of March, leading to the deferment of several large-scale
leasing decisions.
 During Q1 2020, Bengaluru led the way with 38% share of the total absorption in these five cities, followed by
Mumbai at 26%, while Hyderabad accounted for 18% share. Chennai and Kolkata accounted for 16% and 2%
share respectively.
Figure 9: Supply Q1 2019 Vs Q1 2010
5 4.6
4.5
3.9
4
3.5
3
Mn sqft
2.5
2 2
2
1.4
1.5
0.9 1
1 0.6 0.7
0.5
0
0
Source: Vestian Research
Q1 2020 Q1 2019

Q1 2020 UPDATES
 The new office space completions for Q1 2020 was recorded at 7.5 million sqft in the five cities, depicting a
significant dip of 22% as compared with the quantum that had become operational a year ago in Q1 2019.
 Bengaluru registered the highest supply of 3.9 million sqft in Q1 2020, thus accounting for a lion’s share of
52% of the total supply, followed by Mumbai with 27% and Hyderabad with 13% share. Chennai brought up the
rest, accounting for 8% of new supply, as Kolkata did not witness any new supply during the period.
 Supply was impacted by the spread of the COVID-19 pandemic as construction had to be halted owing to
lockdowns in the country and the migration of labour force to their hometowns.
Figure 10: Weighted Average Rental Values and Vacancy in Q1 2020
140 125 30.00%

28%
120 25.00%
100
INR/sqft/month
20.00%
75.5
80
60 62
15% 15.00%
60 48
10.00%
40 7.80%
5.60% 6.20%
20 5.00%
0 0.00%
Source: Vestian Research Weighted Avg Rental Value Vacancy (%)
 The weighted average rental values of the five cities moved moderately on a year-over-year basis, in the range
of 5-8%.
 Vacancy levels in a few office micro-markets such as Bengaluru and Hyderabad eased up a little during Q1
2020 on account of fair quantum of supply entering the market in the previous year.
Table 3: Office Market Summary Q1 2020
Cities Absorption (mn sqft) YoY Change (%) QoQ Change (%) Supply (mn sqft) YoY Change (%) QoQ Change (%)
Bengaluru 3.53 -11% 47% 3.9 -15% 680%
Chennai 1.47 23% -33% 0.6 -33% 100%
Hyderabad 1.64 -25% -59% 1.0 -50% -17%
Mumbai 2.39 31% -30% 2.0 43% 18%
Kolkata 0.15 -57% -85% 0 -100% -100%
Grand Total 9.18 -3% -29% 7.5 -22% 78%

Q1 2020 UPDATES
Retail: Heavy impact of the COVID-19 outbreak as mall supply and leasing activity remains constricted
in Q1 2020; industry may take at least 9-12 months to recover
 The Indian retail realty sector, before the COVID-19 outbreak, had already been performing fairly low-key,
with only a handful of mall projects functioning successfully across the country.
 With the COVID-19 pandemic outbreak, the industry may take at least 9-12 months to recover from the
aftermath of the coronavirus pandemic.
 According to Retail Association of India’s survey, 20-25% of the industry players may need fresh fund infusion
to stay afloat and about 25% of the jobs in the retail industry are likely to get impacted.
 With retail projects and F&B segment being the first ones to shut down in order to manage social distancing and
the subsequent lockdowns in place to contain the virus, consumer spending was curbed significantly during Q1
2020.
 There have been deferments in new leasing activity observed during Q1 2020, as well as delay in the
completions of upcoming retail projects owing to the dearth of skilled and unskilled labour and delay in supply
of construction raw materials.
 Several mall owners across the country are waiving off rentals for retailers and restaurants during the entire
lockdown period, providing relief to a segment that is already battered due to daily loss of revenue.

Q1 2020 UPDATES
Residential: Launch of 16,318 units altogether in Bengaluru, Chennai, Hyderabad and Kolkata during
Q1 2020 – 12% decline YoY; Bengaluru leads the way in launches
Figure 11: New Residential Launches (Q1 2020 Vs Q1 2019)
8351
8200
4748
4229
No of Units
3720
3164
1234 1291
Source: Vestian Research BENGALURU CHENNAI HYDERABAD KOLKATA
Q1 2020 Q1 2019
 Approximately 16,318 new residential units were launched cumulatively in the cities of Bengaluru, Chennai,
Hyderabad and Kolkata, during Q1 2010. There was a decline of 12% witnessed in the number of launches in Q1
2020 when compared with the number of units launched in the corresponding period in 2019.
 Subdued market conditions in the residential real estate segment, that have been evident for the last few
quarters owing to factors such as liquidity issues and the adverse situation in the non-bank finance companies
(NBFCs), have been augmented further by the COVID-19 crisis.
 Bengaluru led the way with maximum number of units launched amongst the four cities in Q1 2020, its share
recorded at a whopping 50% of the total new launches. Chennai accounted for 23% share while Hyderabad and
Kolkata accounted for 19% and 8% share of the total new residential launches in the three cities.
 With the COVID-19 outbreak, many developers across these cities had to reconsider launching their projects
during the period, as lockdowns prevented prospective home buyers from conducting site visits.
Table 4: Residential Market Summary Q1 2020
Cities New Launches (units) YoY Change (%) QoQ Change (%)
Bengaluru 8200 -2% 37%
Chennai 3720 -12% 9%
Hyderabad 3164 -33% -1%
Kolkata 1234 -4% -52%
Grand Total 16318 -12% 8%

Q1 2020 - SOUTHERN RESIDENTIAL MARKET REPORT CARD
Key southern residential markets – 13% decline YoY; Hyderabad with steepest fall of 33% YoY
 The period Q1 2020 witnessed the launch of approximately 15,084 residential units across the three southern
cities of Bengaluru, Hyderabad and Chennai, as against 17,328 units in Q1 2019.
 This depicted a dip of 13% in Q1 2020 as against the number of new launches observed in Q1 2019.
 Bengaluru accounted for the highest number of launches among the three southern cities – its share higher in
Q1 2020 than the share in Q1 2019.
 While Bengaluru saw a marginal decline of 2% on annual basis, in new launches in Q1 2020, Chennai observed
a dip of 12% during the same period.
 The steepest fall in new residential launches was observed in Hyderabad in Q1 2020, to the tune of 33%, as
compared with the number of launches in Q1 2019.
 This has led to Hyderabad's share shrink from 27% of the total number of new launches in Q1 2019 to 21%
share in Q1 2020.
Figure 12: Share of New Residential Launches Q1 2020 Figure 13: Share of New Residential Launches Q1 2019
21%
27%
Q1 2020 Q1 2019
New Launches 54% New Launches 48%
25%
25%
Bengaluru Hyderabad Chennai Bengaluru Hyderabad Chennai
Source: Vestian Research Source: Vestian Research

BENGALURU
Office: 3.53 million sqft absorption depicting a – 11% decline YOY while supply increases to 3.9 million
sqft from the previous quarter; Whitefield accounts for the highest share of the absorption
Figure 14: Absorption and Supply Trend
4.6 4.5
3.95 3.9
3.5 3.53
3.1
2.4
MN SQ FT
1.8
0.5
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Source: Vestian Research Absorption Supply
 Bengaluru registered 3.53 million sqft office space absorption during Q1 2020, signifying a drop of 11% as
compared with the absorption in Q1 2019. It is to be noted that the COVID-19 outbreak impacted adversely on
office activity during the last month of the quarter when lockdowns were imposed across the country to contain
the virus.
 However, there was a substantial growth of 47% in Q1 2020 when compared with the absorption in the previous
quarter Q4 2019, primarily on account of the new supply that came in.
 The office markets in Whitefield accounted for the highest share of the absorption, to the tune of 39% of the
total office space transacted in Q1 2020.
 Whitefield, thus, surpassed the preferred markets along the Outer Ring Road (ORR), which accounted for 36%
share.
 With the much-awaited metro rail connectivity inching towards completion in the region, Whitefield has
resurfaced as a premium option to set up office by occupiers looking at availing lower rentals before they
increase in the forthcoming period.
 Notable leased transactions in Q1 2020 include large-scale office space taken up by occupiers such as Harman
International at Whitefield and Google in ORR.
 While IT/ITeS continued to be the major demand driver, co-working space operators such as WeWork and
Smartworks took up significant amount of office spaces as well. These companies accounted for 22% share of
the total absorption in Q1 2020.

BENGALURU
 On the supply front, the city witnessed an infusion of 3.9 million sqft of office space in Q1 2020, depicting a
significant increase from the previous quarter Q4 2019, while there was a drop of 15% on an annual basis.
 The year saw a sizable quantum of new supply in the suburban markets and in the peripheral office markets in
the east.
 The gradual yet steady quantum of office space supply entering the market in a staggered manner has just
about managed to keep pace with leasing activity in the city and has been able to keep the vacancy at 5.6%.
 Meanwhile, in some quarters, demand for deferment or waiver of rentals on commercial properties has
risen, invoking force majeure/act of God.
Residential: 8,200 units launched in Q1 2020 – 2% decline YoY while QoQ growth of 37%;
majority of launches in the affordable and mid segment categories
Figure 15: Residential Launches Trend
9000 8351 8321 8200

8000 7560
7000
6000
6000
No. of units
5000
4000
3000
2000
1000
0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2019
 Bengaluru saw the launch of approximately 8,200 residential units across all budget categories during Q1
2020, signifying a marginal drop of 2% on an annual basis.
 The new launches in Q1 2020 were a vast improvement on the number of launches observed in the previous
quarter, to the tune of 37%, thus depicting a relatively steady market in the face of the COVID-19 pandemic.
 Majority of these launches were in the affordable and mid segment categories, coming up towards the east and
the peripheral northern and southern parts of the city.
 Locations such as Whitefield, Kannamangala, Electronics City, Sarjapur Road, Devanahalli and Yelahanka saw
several new launches in Q1 2020.
 Meanwhile, capital values of completed as well as under-construction projects were stable across most
micro-markets during the quarter.

BENGALURU
Bengaluru Real Estate Market Rental Values and Capital Values: A Snapshot
Table 5: Bengaluru Office Rental Values, Q1 2020 Table 6: Bengaluru Retail Rental Values, Q1 2020
Source: Vestian Research Source: Vestian Research *(INR/sqft/month)
Rental Value (INR/sq ft/month) Rental Rental

Micro-location High Street Mall Spaces
Grade A Grade B Value* Value*
CBD 90 - 145 75 - 95 Brigade Road 350 Magrath Road 350
SBD 92 - 125 70 - 95 Commercial Street 250 Cunningham Road 160
ORR 75 - 115 60 - 70 Church Street 150 Vittal Mallya Road 450
PBD 40 - 60 28 - 35 MG Road 150 Koramangala 500
68 - 85 50 - 65 Indiranagar 100 ft Road 250 Whitefield 170

Bengaluru North
Jayanagar 11th Main Road 300 Bannerghatta Road 200
Office rentals mentioned are for Warm Shell spaces
Sampige Road, 100 Mysore Road 115
Malleswaram
New BEL Road 150
Rajarajeshwari Nagar 110
Kamanahalli Main Road 200
ORR (Marathahalli -
125 Rajaji Nagar 350
Sarjapur junction)
Bannerghatta Road 100 Malleswaram 250
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.
Table 7: Bengaluru Residential Capital Values for Apartments, Q1 2020
(Prices in INR/sqft)
Micro-location Mid Segment Premium Segment Luxury Segment

Central - 10,500 - 15,000 18,000 - 38,000
Off-Central - 6,800 - 14,000 16,000 - 25,000
Bannerghatta Road 4,500 - 5,800 6,000 - 8,500 -
Hosur Road 4,500 - 5,400 5,800 - 7,000 -
Sarjapur Road 4,600 - 5,850 6,000 - 7,500 8,000 - 11,000
Whitefield 4,800 - 6,000 6,000 - 8,450 8,500 - 12,000
Bengaluru North 4,200 - 6,000 6,350 - 8,450 8,500 - 13,500
Tumkur Road 3,500 - 4,750 - -
Mysore Road 3,800 - 5,000 6,000 -
Kanakapura Road 4,350 - 5,800 6,100 - 8,500 -
Old Madras Road 4,500 - 5,850 6,000 - 6,500 -

CHENNAI
Office: 1.47 million sqft office space absorption, a 23% growth YoY while depicting a 33% decline QoQ;
new supply decreases to 0.6 million sqft
2.2
1.47
1.4
1.2 1.2
MN SQ FT
0.9
0.6 0.6
0.5
0.3
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
 Chennai observed a fair amount of traction in office space with absorption of 1.47 million sqft in Q1 2020,
depicting an increase of 23% over the absorption recorded in Q1 2019.
 However, the momentum in absorption during Q1 2020 appears to have flagged down when compared with the
quantum of office space absorbed in the previous quarter Q4 2019 – to the tune of 33%. It is to be noted that
transaction activity had to ceased in March on account of the lockdowns imposed to contain the spread of the
COVID-19 outbreak.
 Majority of the absorption took place in the first two months of the quarter, the demand primarily led by the
IT/ITeS sector, while a substantial part was accounted for by co-working space operators as well.
 The SBD office markets, comprising locations such as Guindy and Mount Poonamallee Road, catered to a large
portion of the office space demand in Q1 2020.
 However, in contrast to the enthused demand for office space in Chennai, new office space supply continued to
remain subdued and approximately 0.6 million sqft was added to the office stock in Q1 2020.
 While the new supply in Q1 2020 was double of the quantum that became operational in the previous quarter
Q4 2019, it depicted a decline of 33% when compared with the supply figure a year back in Q1 2019.
 A considerable amount of new office supply is slated to come up in the vicinity of Guindy–Mount Poonamallee
High Road stretch and the Old Mahabalipuram Road (OMR) – near Perungudi, provided the COVID-19 crisis gets
over soon so that construction can be resumed.

CHENNAI
Residential: 3,720 units launched in Q1 2020 – 12% decline YoY while 9% growth QoQ;
mid-segment housing continues to remain in the spotlight
4500 4229
4000 3720
3416
3500
3058
3000
No. of units
2396
2500
2000
1500
1000
500
0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2019
 Chennai saw the launch of 3,720 new residential units during Q4 2019, depicting a decline of 12% as
compared to the figure in the corresponding period in the previous year (Q1 2019).
 However, despite the year-on-year decline, the number of new launches in Q1 2020 saw a growth of 9% as
compared to the figure in the previous quarter Q4 2019.
 The growth momentum in new launches was expected to continue through the quarter but the onset of the
COVID-19 outbreak and the ensuing lockdowns put the brakes on several developers plans of launching new
projects.
 In the meantime, mid-segment housing continued to remain in the spotlight and several new launches during
Q1 2020 belonged to this category.
 The OMR stretch saw substantial number of new launches in locations such as Kelambakkam and Siruseri during
the period, while several new residential units were launched in micro-markets such as Mogappair and
Pallavaram as well.

CHENNAI
Chennai Real Estate Market Rental Values and Capital Values: A Snapshot
Table 8: Chennai Office Rental Values, Q1 2020

Rental Value (INR/sqft/month)

Micro-location
Grade A Grade B
CBD 70 - 97 60 - 70
Off CBD 65 - 88 55 - 65
SBD 50 - 87 35 - 45
Ambattur 35 - 45 28 - 35
OMR (Pre-toll) 60 - 90 45 - 55
OMR (Post-toll) 45 - 55 30 - 40
PBD
GST Road 45 - 58 30 - 40
Table 9: Chennai Retail Rental Values, Q1 2020
Source: Vestian Research *(INR/sqft/month)
High Street Rental Value* Mall Spaces Rental Value*
Khadar Nawaz Khan Road 200 Whites Road 230 - 250
Nungambakkam High Road 145 R K Salai 130 - 150
R K Salai 140
Mount Road 120 - 150
Usman Road – South 125
Usman Road – North 150

Nelson Manickam 140 - 160
Pondy Bazaar 220 Road
Adyar Main Road 150

Velachery 270 - 290
Annanagar Second Avenue 180
Velachery 120
Vadapalani 220 - 240
Purasavakkam High Road 150
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.
Table 10: Chennai Residential Capital Values for Apartments, Q1 2020
Source: Vestian Research (Prices in INR/sqft)
Micro-location Mid Segment Premium Segment Luxury Segment
Central - 10,000 - 15,000 20,000 - 28,000
Off - Central - 6,000 - 10,500 12,000 - 18,000
OMR 4,500 - 5,300 6,400 - 7,000 -
GST 4,000 - 4,700 5,000 - 6,000 -
East Coast Road - 7,000 - 9,000 9,500 - 11,000
Oragadam 3,500 - 4,800 - -

HYDERABAD
Office: 1.64 million sqft of office space absorption in Q1 2020 – 25% decline YoY, large share of
transactions led by co-working space segment; supply constricted at 1 million sqft

6.4
4
MN SQ FT
2.4
2.18 2
1.6 1.64
1
1.2
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
 Hyderabad office market witnessed subdued occupier interest in Q1 2020 with leasing activity recorded to the
tune of approximately 1.64 million sqft, a sharp decline of 59% as compared with the absorption in the
previous quarter Q4 2019. However, it is to be noted that a large quantum of pre-committed space had become
operational during that period in 2019, augmenting the city’s absorption figure significantly.
 The absorption during Q1 2020 also depicted decline of 25% when compared to the quantum over a year ago,
in Q1 2019.
 While transactions were recorded only during the first two months of the quarter, with the onset of the
COVID-19 crisis, it remains to be seen if any of these deals observe any revisions in the forthcoming quarter.
 A large share of the transactions was led by co-working space segment with operators such as AWFIS,
SimpliWork and SmartWorks continuing to make their presence felt in Hyderabad.
 Hyderabad had witnessed a significant quantum of new supply in Q2 2019, easing the vacancy levels. Post that,
the supply situation has been rather constricted.
 Q1 2020 saw new completions of just 1 million sqft, implying a 17% dip vis-à-vis Q4 2019, and a steeper
decline of 50% when compared with the supply figure in Q1 2020.
 While a substantial quantum of supply, scheduled to be completed during Q1 2020, got deferred owing to the
COVID-19 crisis, there is a strong supply pipeline in place for the forthcoming period.

HYDERABAD
Residential: 3,164 units launched in Q1 2020; steep decline of 33% YoY in new launches
5000 4748
4505
4500
4000
3500 3332
3200 3164
No. of units
3000
2500
2000
1500
1000
500
0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2019
 Hyderabad residential market has observed a gradual declining trend in new launches since Q1 2019. A steep
decrease of 33% was seen in Q1 2020 as compared with the number of new launches in Q1 2019.
 Nonetheless, the city witnessed the launch of 3,164 units during the first two months in Q1 2020, signifying
a nominal dip of 1% over the number of new launches in the previous quarter Q4 2019 and portending a healthy
number of new launches for the quarter.
 Inopportunely, lockdowns in the country owing to the outbreak of COVID-19 pandemic led to developers
postponing plans of launching their projects.
 Majority of the new launches during the quarter was observed in the western and northern zones of the city,
such as Kokapet, Mokila, Kompally, Kukatpally and Bolarum, that have gained prominence on account of their
proximity to employment hubs in the western region as well as the CBD.

HYDERABAD
Hyderabad Real Estate Market Rental Values and
Capital Values: A Snapshot
Table 11: Hyderabad Office Rental Values, Q1 2020


Micro-location
Grade A Grade B
CBD 45 - 57 40 - 48
SBD 55 - 65 50 - 55
PBD (West) 60 - 75 45 - 50
PBD 30 - 35 25 - 30
Table 12: Hyderabad Retail Rental Values, Q1 2020

Source: Vestian Research *(INR/sqft/month)
Rental Rental
High Street Mall Spaces
Value* Value*
M.G. Road 150
Begumpet 130 NTR Gardens 230
Banjara Hills Road. 1 160
Banjara Hills Road. 2 160
Panjagutta 120 Banjara Hills 270
Jubilee Hills Road. 36 140
AS Rao Nagar 110
Madhapur 150 Madhapur 280
Kukatpally 130
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.
Table 13: Hyderabad Residential Capital Values for Apartments, Q1 2020

Premium Luxury
Micro-location Mid Segment
Segment Segment
Banjara Hills - 8,000 - 12,000 11,000 - 15,000
Jubilee Hills - 6,500 - 12,000 -
Himayath Nagar 5,000 - 6,000 - -
Maredpally 4,200 - 6,000 - -
Begumpet, Somajiguda 4,000 - 5,300 5,500 - 7,000 -
Madhapur, Gachibowli 4,000 - 5,450 5,500 - 7,500 -
Kukatpally 3,700 - 4,500 4,500 - 6,000 -

MUMBAI
Office: Steady with 2.39 million sqft of office space absorption in Q1 2020 – 31% growth YoY;
supply improves to 2 million sqft
3.4
2.39
2.3
2.1
2
1.83
MN SQ FT
1.7
1.4 1.4
0.8
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

Absorption Supply
 Mumbai observed a heightened pace of office leasing activity in 2019, its momentum carried forth to Q1 2020
as well. The city registered office space absorption of 2.39 million sqft during the period – translating to an
improvement of 31% over the corresponding period in the previous year (Q12019).
 While the absorption in Q1 2020 depicted a decline as compared with the previous quarter Q4 2019, it is to be
noted that the transactions recorded were only for the first two months of the year, before the situation turned
adverse owing to the COVID-19 outbreak.
 The demand was primarily driven by IT/ITES occupiers, followed by BFSI occupiers. Other sectors such as
consulting, engineering and manufacturing accounted for substantial shares of the total absorption, too.
 The office markets in Navi Mumbai and the western suburbs saw substantial amount of traction during the year.
 New office space supply in Mumbai during Q1 2020 was recorded at 2 million sqft, signifying an increase of
43% over the supply figure in Q1 2019.
 Majority of the new supply came up in the office markets in Navi Mumbai.
 A robust supply pipeline has been in the offing and scheduled to become operational by the end of 2020, which,
now is unlikely to get completed on time due to the COVID-19 crisis.

MUMBAI
Retail Market: Steady leasing during the early part of Q1 2020; upcoming malls face uncertain
timelines of completion
 The first quarter of the year had started promisingly with a number of leasing transactions.
 With the deferment of several malls, that were scheduled to become operational in 2019, till 2020, the retail
market in Mumbai was expected to witness fair amount of activity.
 The timelines of completion of these malls are presently faced with uncertainty, as the industry expects around
a year of hardships before it revives.
 The early part of Q1 2020 saw considerable leasing activity in the key high streets of the city, primarily led by
F&B and apparel sectors, before the sector was hit by the outbreak of the COVID-19 crisis.
 Key transactions during the period include apparel brand Zudio taking up 13,000 sqft at Satra Park in Borivali,
the beauty store Myglamm occupying retail space of 7,000 sqft on Juhu Tara Road and Lamborghini Cars taking
up 9,000 sqft at Prabhadevi.
Table 14: Mumbai Office Rental Values, Q1 2020

Rental Value Rental Value

Micro-location
Grade A Grade B
(INR/sqft/month) (INR/sqft/month)
CBD 175- 250 125 - 150
Off CBD 125 - 175 100 - 120
BKC 225 - 335 175 - 225
Western Suburbs 125 - 145 85 - 120
Eastern Suburbs 90 - 120 60 - 90
Navi Mumbai 75 - 100 45 - 70

Table 15: Mumbai Retail Rental Values, Q1 2020

High Street Mall Rental

Micro-location Rental Value Value
(INR/sqft/month) (INR/sqft/month)
South & Central Mumbai 400 - 700 350 - 800
Linking Road 750 - 850 -
Western Suburbs 300 - 500 200 - 500
Eastern Suburbs 300 - 400 180 - 250
Navi Mumbai 200 - 350 250-350

KOLKATA
Office: 0.15 million sqft office space absorption in Q1 2020 – 57% decline YoY and 85% decline QoQ;
no new completion during the period
0.8
0.73
MN SQ FT
0.52
0.35
0.25
0.15
0 0
0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
 Kolkata saw the absorption of 0.15 million sqft office space during Q1 2020, a dip of 57% when compared with
the absorption in the corresponding period in 2019.
 The city had been gradually on an upward curve regarding office space absorption since Q3 2019, touching 1
million sqft of absorption in Q4 2019.
 It was expected that this positive momentum would be evident in the new year as well. However, the COVID-19
outbreak impacted the business environment adversely, thus stemming the growth traction.
 Meanwhile, new completions have been rather sporadic and barring Q1 2029 and Q4 2019 in the past year,
there has been no major office space supply added to the city’s office market.
 The IT/ITeS sector remained the key demand driver of office absorption during Q1 2020, majority of the leasing
activity focused in the IT hubs of Salt Lake Sector V and Rajarhat.

KOLKATA
Residential: 1,234 units launched in Q1 2020; COVID-19 impact upends growth momentum
3500
3000
3000
2550 2560
2500
No. of units
2000
1500 1291
1234
1000
500
0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2019
 Kolkata residential market had been steadily observing a positive movement in new launches since Q2 2019,
before the COVID-19 crisis hit the real estate sector.
 The first two months of the quarter Q1 2020 alone saw 1,234 units being launched across the city, running
short of the figure in Q1 2019 by just 4%.
 The period saw residential launches by reputed developers such as Shriram Properties and Siddha Group, the
projects attracting increased enquiries.
 One of the key factors characterizing the recent launches in the city has been the fact that majority of the new
launches were concentrated in the affordable segment category, thereby garnering buyer interest.

KOLKATA
Kolkata Real Estate Market Rental Values and Capital Values: A Snapshot
Table 16: Kolkata Office Rental Values, Q1 2020

Micro-location
Grade A
CBD 80 - 110
SBD 60 - 70
PBD 30 - 45
Table 17: Kolkata Retail Rental Values, Q1 2020
*(INR/sqft/month)
High Street Rental Value* Mall Spaces Rental Value*
Park Street 400 - 480

South Kolkata 280 - 400
Camac Street 400 - 450
Elgin Road 300 - 350 East Kolkata 320 - 400
Theatre Road 200 - 250 Rajarhat 90 - 150
Gariahat 180 - 200 Elgin Road 450 - 500
Lindsay Street 400 - 450 Park Circus 500 - 550
Table 18: Kolkata Residential Capital Values for Apartments, Q1 2020
Micro-location Apartment Capital Value (INR/sqft)
Alipore Park Road, Belvedere Road 14,000 - 19,000
Ballygunge, Gurusaday Road, Ballygunge Circular Road, Queens Park 12,000 - 18,000
Triangular Park, Southern Avenue, Hindustan Park 7,000 - 12,500
EM Bypass 6,000 -12,000
Kankurgachi, VIP Road, Ultadanga 5,500 - 9,000
Salt Lake 5,000 - 7,800
Rajarhat-New Town 3,500 - 7,000
Golf Green, Tollygunge, Jodhpur Park 4,500 - 6,800
Garia, Narendrapur, Sonarpur, Joka, 3,200 - 6,000
Lake Town, Bangur Avenue, Dum Dum, VIP Road, Kestopur, Baguihati 4,000 - 6,500
Jessore Road, Madhyamgram, Barasat 3,200 - 5,500

OUTLOOK
Economy
 Gloomy forecast - With India in a 40-day nationwide lockdown to contain the spread of the COVID-19
pandemic, economists estimate severe contraction to the country's GDP.
 Government support – In the face of such an unprecedented event, the measures announced by the government
and the RBI are believed by many economists to have fallen short of the support needed to fight against the
pandemic. The government has so far announced a spending package of INR 1.7 lakh crore, while the RBI has
reduced key interest rates, and brought in targeted long-term repo operations to ease liquidity in the system.
Repo Rate was reduced by 75 bps, bringing it to 4.40%, thus reducing ROI on home loans and endeavoring to
induce more sales. Additionally, the Reverse Repo Rate has been reduced by another 25 bps to 3.75%, infusing
more liquidity into the ecosystem.
 Silver lining – There are possibilities of India benefiting as global companies look at diversifying out of China.
Indian Real Estate Market

 Liquidity situation could constrict with banks and NBFCs getting more risk averse.
 The lockdown brought construction activities to delaying project deliveries, resulting in developers’ capital
getting stuck in unfinished projects.
 With developers’ revenue taking a hit, NPAs in the real estate industry could increase.
 The economy portending a sharp contraction, prospective investors in Indian real estate could put their plans on
hold.
 On the flip side, in view of the other asset classes dismal performance during the pandemic, investors might look
at real estate as a relatively safer asset class.
Office Market
 Office market will expectedly witness a decline in absorption in the short to medium term.
 Commercial real estate will emphasize on the ‘Health & Hygiene’ factor in workplaces.
 Occupiers may be forced to consider a flex-and-core strategy, reducing space requirements, thus making work
from home a reality.
 Transactions might be deferred or even curtailed in extreme cases, on account of the current uncertainty.
 Rental growth will slow down for the next few quarters.
 While demand for co-working space from start-ups will take a hit, demand would increase from corporates on
account of these companies opting for decentralization of the workplace to mitigate risks.

OUTLOOK
Residential Market
 Residential demand, in the short term, would be impacted with people postponing their buying decisions owing
to mounting fears of job loss and pay cuts.
 Home buyers may also default on loan repayments on account of job insecurity.
 In order to shield themselves against liquidity issues, developers would look at Joint Venture / Joint
Development options.
 In the short term, affordable housing will be affected more than other housing categories due to financial
insecurities.
Retail Market
 Retail market, the hardest hit sector, will take around a year to expect revival.
 Demand for rent-free periods/rent waivers would rise on account of the lockdown.
 Defaults in rents and increasing vacancy would affect mall valuations.
Opportunities
 Senior living and Logistics & Warehousing hold good potential to develop as priority asset classes.
 Demand from e-commerce companies expected to increase significantly.
 Digitization and adaptability to technology.
 Creation of a more skilled and agile human resources machinery to counter such events in the future.
Industry Expectations
 Reduction of stamp duty for a short period of time.
 Enhancement of the stressed asset fund (AIF) quantum and inclusion of commercial projects as well.
 Permit banks and NBFCs to one-time refinance developer loans without classifying them as NPAs.
 Relaxation in bad-debt classification for six months by banks, as allowed by RBI.
 Waive off/reduce GST for most distressed sectors for a year.
 Direct banks to lend more to NBFCs so that liquidity can flow to sectors like real estate and MSMEs.

OFFICE: LOCATION MASTER
City Micro-location Key Locations
CBD M.G. Road, Kasturba Road, Lavelle Road, V.M. Road, Ulsoor Road, Infantry Road
SBD Indiranagar, Koramangala, Inner Ring Road, Old Airport Road, Bannerghatta Road
ORR Stretch from Hebbal to Silk Board junction
PBD Whitefield, Electronics City, Mysore Road, Sarjapur Road

Bengaluru
Bengaluru North Bellary Road (Hebbal to BIAL)
CBD Anna Salai, Cathedral Road, Dr.R.K. Salai, Nungambakkam
Off CBD T.Nagar, Alwarpet, Egmore
Ambattur Ambattur
SBD Porur, Guindy, Mt. Poonamallee Road

Chennai
OMR (Pre-toll) OMR till Perungudi Toll Plaza
OMR (Post-toll) OMR beyond Perungudi Toll Plaza
PBD
GST Road Tambaram to Singaperumalkoil
CBD Begumpet, Somajiguda, Raj Bhavan Road & SP Road
SBD Banjara Hills, Jubilee Hills

Hyderabad
PBD (West) Madhapur, Gachibowli, Raidurgam, Manikonda, Hi-Tech City
PBD Pocharam, Uppal, Shamshabad
CBD Fort, Church Gate, Cuffe Parade, Colaba
Off-CBD Worli, Lower Parel, Prabhadevi
BKC Bandra Kurla Complex

Mumbai
Western Suburbs Andheri, Goregaon, Malad
Eastern Suburbs Vikhroli, Powai, Mulund, Thane
Navi Mumbai Vashi, Belapur
Esplanade, Park Street, Camac Street, AJC Bose Road, Dalhousie, Theatre Road,
CBD
Shakespeare Sarani Road
Kolkata Sarat Bose Road, S.P. Mukherjee Road, Ashutosh Mukherjee Road, Rash Behari Connector
SBD
& Park Circus Connector
PBD Salt Lake Sector-V, New Town

RESIDENTIAL: LOCATION MASTER
City Micro-location Key Locations
MG Road, Kasturba Road, Brunton Road, Lavelle Road, Richmond Road, Residency Road,
Central
Frazer Town, Cox Town and Hannes Road
Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleswaram, RMV Extension,

Off-central
Sanjay Nagar, RT Nagar, Yeshwathpur, Rajajinagar
ORR (Marathahalli-Silk HSR Layout, ORR (Marathahalli-Silk Board Junction), Sarjapur Road, Haralur Main Road,
Board Jn) & Sarjapur Road Kasavanahalli Main Road
Whitefield Whitefield, Brookefield, Mahadevpura, ORR (K.R.Puram to Marathahalli), Varthur Road

Bengaluru K.R. Puram, Ramamurthy Nagar, Battarahalli, Sonnenahalli, Hirandahalli, Budigere,
Old Madras Road
Devanahalli-Hoskote Road
Banaswadi, HRBR Layout, Hennur Road, Thanisandra Main Road, Bellary Road, Yelahanka,
Bengaluru North
Kogilu, Chokkanahalli, Bagalur Road, Doddaballapur Road, New Town Yelahanka, Jakkur
Hosur Road Hosur Main Road, Electronics City, Neeladri, Chandapura, Anekal
Bannerghatta Road Bannerghatta Road, Begur, BTM Extention
Mysore Road Mysore Road, Kengeri Satellite Town, Vijayanagar, Magadi Road, RR Nagar
Kanakapura Road Kanakapura Main Road, Banashankari Extension and Uttarahalli
Tumkur Road Tumkur Road, Hessarghatta, Jalahalli, HMT Township
Central Adyar, T Nagar, Nungambakkam, Kodambakkam,Teynampet, West Mambalam
Off-Central Manapakkam, Anna Nagar, Koyambedu, KK Nagar

Chennai East Coast Road Thiruvanmiyur, Nellikaranai, Uthandi
OMR Perungudi, Velacherry, Sholinganallur, Kelambakkam
GST Road Guindy, Thambaram, Vandalur, Singaperumal Koil
Vandalur- Kelambakkam Road Vandalur-Kelambakkam Road
Oragadam Oragadam
Residential: Segment Classiﬁcation
Segments Price Range

Affordable INR 25 - 50 lakhs
Mid INR 50 lakhs - 1 crore
Premium INR 1 crore - 3.0 crore
Luxury INR 3.0 crore and above

THE TEAM
About Vestian
Vestian, is a contemporary workplace solutions firm that specializes in providing
occupier-focused solutions for commercial, residential, industrial, retail and hospitality
sectors. Our service portfolio includes Integrated Service Delivery, Project Services,
Investment & Consultancy Services, Transaction Advisory Services, Retail Business
Solutions & Integrated Facilities Management Services.
We align and measure our key deliverables based on clients' strategic business goals. Our
commitment to achieve excellence and consistency in our service delivery models has
helped us attain high standards of quality and raise the bar for the industry. Our
experienced team has the required expertise and exposure in different sectors.
Combining global best practices and local knowledge, the team provides an integrated
solution for all real estate requirements. Moreover, the belief in our corporate philosophy
- Delivering Measurable Results - helps us to provide solutions, in keeping with global
delivery standards.
Vestian is certified in both quality management systems and environmental health &
safety standards - ISO 9001, ISO 14001, ISO 37001 and OHSAS 18001. We are also a
member of the Indian Green Building Council.
Investment & Consultancy Services (ICS) is the Research, Consultancy and Investment
solutions arm of Vestian. We provide value-added end-to-end investment advisory and
consultancy services. Our clients include multinational and Indian corporations,
investors, private equity (PE) funds, global and national financial institutions, Avijit Mishra, MRICS
government organizations, international, national and local real estate developers and Assistant Vice President -
landlords in tier I, II and III cities across the country. Investment & Consultancy Services
avijit@vestianglobal.com
Avijit heads Investment & Consultancy Services at

Vestian Reports Vestian. A member of the Royal Institution of
Chartered Surveyors, he is well versed with
Consultancy Services, Property Valuation,
Financial Appraisal, Market Research, Land and
Capital Market Transactions.
Connect Q4, 2018 Sinagpore Hong Kong The Shanghai

Office Market Report Office Market Report Report
Sangeeta Sharma
Associate Director -
Investment & Consultancy Services
sangeeta@vestianglobal.com
Sangeeta is a management professional with over

12 years of experience in the real estate industry.
Provisional Revised Evolution in Aerotropolis Bengaluru: Her expertise lies in real estate research with
Master Plan Bengaluru Workplace Trends Real Estate Market Report
proficiency in curation of industry reports
2031
(writing, design and development), data analysis
and market research.
For further information, please write to us at info@vestianglobal.com

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VESTIAN

India Real Estate Market Office Market

Kolkata Residential Market

Vestian Quarterly Newsletter Q1 2020 2

Figure 1: GDP Growth Trend

Source: Central Statistical Organization, Government of India

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 3

Figure 2: India Growth Forecasts by Key Agencies

ADB FITCH MOODY'S S&P GLOBAL IMF

Source: Compiled by Vestian Research

India: Down But Not Out

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 4

Figure 3: Inflation based on WPI & CPI

Source: Monthly Economic Report, Department of Economic Affairs, Government of India

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 5

Table 1: Key Policy Rates

Key Rates Jan-20 Feb-20 Mar-20

Figure 4: Repo Rate Trend

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 6

Figure 5: Performance of BSE Sensex

Figure 6: Performance of BSE Realty Index

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 7

Figure 7: Total FDI Inflows into India

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 8

Table 2: PE Investments in Real Estate Sector, Q1 2020

NYLIM India Max Estates Commercial Noida 56.05

Mitsui RMZ Corporation Commercial Bengaluru, Mumbai and Delhi 1000

Goldman Sachs Vatika Group Commercial Gurgaon 85

Source: Vestian Research, Venture Intelligence

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 9

India Real Estate: The growth story so far

Increase in PE investments, commercial markets rule,

Market size expected to grow to USD 180 billion, the

2020 industry hit by COVID-19 crisis, disruption across the

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 10

Figure 8: Absorption of Office space Q1 2020 Vs Q1 2019

Source: Vestian Research Q1 2020 Q1 2019

Figure 9: Supply Q1 2019 Vs Q1 2010

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 11

Figure 10: Weighted Average Rental Values and Vacancy in Q1 2020

140 125 30.00%

Source: Vestian Research Weighted Avg Rental Value Vacancy (%)

Table 3: Office Market Summary Q1 2020

Bengaluru 3.53 -11% 47% 3.9 -15% 680%

Chennai 1.47 23% -33% 0.6 -33% 100%

Hyderabad 1.64 -25% -59% 1.0 -50% -17%

Mumbai 2.39 31% -30% 2.0 43% 18%

Kolkata 0.15 -57% -85% 0 -100% -100%

Grand Total 9.18 -3% -29% 7.5 -22% 78%

Source: Vestian Research

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 12

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 13

Figure 11: New Residential Launches (Q1 2020 Vs Q1 2019)

Source: Vestian Research BENGALURU CHENNAI HYDERABAD KOLKATA

Table 4: Residential Market Summary Q1 2020

Bengaluru 8200 -2% 37%

Chennai 3720 -12% 9%

Hyderabad 3164 -33% -1%

Kolkata 1234 -4% -52%

Grand Total 16318 -12% 8%

Source: Vestian Research

Investment & Consultancy Services Vestian Quarterly Newsletter Q1 2020 14

Bengaluru Hyderabad Chennai Bengaluru Hyderabad Chennai

Source: Vestian Research Source: Vestian Research