INDIA REAL ESTATE - RESEARCH - Knight Frank

 
INDIA REAL ESTATE - RESEARCH - Knight Frank
RESEARCH
                                                       INDIA REAL ESTATE

        INDIA REAL ESTATE
                     RESIDENTIAL AND OFFICE

                         JULY - DECEMBER 2017

AHMEDABAD | BENGALURU | CHENNAI | HYDERABAD | KOLKATA | MUMBAI | NCR | PUNE
                                                                           1
INDIA REAL ESTATE - RESEARCH - Knight Frank
INDIA REAL ESTATE

Connecting
              TABLE OF CONTENTS
              ALL INDIA		         12

People        AHMEDABAD
              BENGALURU
                                   24
                                   44

& Property,
              CHENNAI		           60
              HYDERABAD           76

Perfectly.
              KOLKATA		           92
              MUMBAI		            102
              NCR		               120
              PUNE		              138

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INDIA REAL ESTATE - RESEARCH - Knight Frank
RESEARCH                                                                                                                                                                                                                                    INDIA REAL ESTATE

FOREWORD

                                     Nearly half a decade from now would              Nevertheless the near standstill triggered     future new business districts are taking        overseas home in India has been largely         endorsement of the structural resilience in
                                     perhaps be a good time to review the             by demonetisation seems to have tapered        shape across peripheral markets in big          driven by fascination for exotic locations or   our macro-economic architecture.
                                     new wave of transformation that set              with time. Stakeholders also appear            metros. The steady expansion of new age         perhaps as a safe shelter for our children
                                     into India’s real estate sector in 2017.         to be growing in confidence with the           businesses such as co-working space             studying aboard. But today resident             The overall resurrection of the real estate

                                     At a glance the year was probably one            gradual acceptance of structural reforms       providers is also one of the defining stories   Indians investing in residential properties     sector would depend upon the long –term

                                     packed with uncertainty, volatility and          such as the Real Estate (Regulation and        of 2017.                                        overseas are mostly doing so as sound           impacts and benefits of the structural

                                     long-term promise of new opportunities.          Development) Act, 2016. The Industry                                                           investments.                                    reforms brought into the sector over the

                                     While a battery of reforms tested industry       however, is still grappling to navigate its    Going forward the government’s emphasis                                                         past 12-odd months.

                                     stakeholders, the new paradigm of                way through the new tax regime post the        on housing and its efforts to mitigate risks    We are also looking forward to the Union

                                     transparency and consolidation achieved          introduction of the Goods and Services         though structural reforms is gradually          Budget 2018-19 with respect to the Real
         SHISHIR BAIJAL
    CHAIRMAN AND MANAGING DIRECTOR   in the process should pave the way for a         Act.                                           building confidence in consumers and big        Estate Investments Trusts (REITs). It is time

                                     healthy momentum in attracting buoyant                                                          market stakeholders such as institutional       we cut down the long term capital gains

                                     global capital in the near future.               However, select markets wherein RERA           funds.                                          holding period for REITs from three years
                                                                                      has matured have witnessed developers                                                          to one year.
                                     At the end of 2017, India’s residential sector   re-launch projects at attractive prices        A large number of these investors and

                                     appears to have shrunk to a fraction of          which led to an uptick in sales volumes in     funds have made changes to the portfolio        This would bring the investment

                                     its size in less than a decade. Eight cities     2017. The strategic switch in developers’      allocation strategy allowing investment         opportunity at a similar level with equity

                                     covered in the report collectively saw           approach has led to a price reduction is       exposure to the Indian real estate. The         investments. We strongly believe that the

                                     just over 100,000 new residential units          most markets.                                  pension and private equity funds are            much anticipated move is the missing

                                     enter the market. Similarly, sales volumes                                                      investing in commercial assets (office          part of the jigsaw puzzle that could have

                                     were restricted to 228,000 units, again a        Meanwhile the office leasing market            spaces and malls) and also in under-            undermined India’s REITs story.

                                     fragment of its scale in the recent past.        maintained its strong fundamentals             construction residential properties.
                                                                                      although expansion concern for the                                                             Meanwhile, the Moody’s upgrade for
                                     While the market has been on a steady
                                                                                      turbulence-hit technology sector is still      There is also an uptick in capital              India after 13-long-years has comes as
                                     decline, the past 12-odd months were an
                                                                                      prevalent. While the struggle for new office   movements aboard in form of overseas            bright spark amid widespread cynicism
                                     acid test of sorts for the real estate sector
                                                                                      blocks appears to be unceasing in the near     residences. Traditionally, the desire for an    about the economy. The recognition is an
                                     in India.
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INDIA REAL ESTATE - RESEARCH - Knight Frank
RESEARCH                                                                                                                                                                                                                INDIA REAL ESTATE

                                                                                                             interest. Most importantly, it was aimed        However, West Bengal has not enacted the          been tracked as per four crucial stages
                                                                                                             to allow a grievance resolution platform to     RERA Act as on 30 November 2017. After            as below, each of which has an equal
                                                                                                             homebuyers. While consumers heaved a            notification of rules, the immediate next         weightage:
                                                                                                             sigh of relief momentarily, on the ground       step was the constitution of a “permanent”
                                                                                                             realities are very different. Maharashtra       real estate regulatory authority for a
                                                                                                             is the only state that notified the real        smooth transition. But this process is still
                                                                                                             estate rules timely and subsequently            underway across majority of states. Due
                                                                                                             implemented it statewide by 1 May 2017.         to challenges to create a large, web-based
                                                                                                             Thereafter, in a bid to implement RERA at       interface comprising state-level project
                                                                                                             the eleventh hour, hasty notification of real   information, the priority shifted to putting
                                                                                                             estate regulations by many states came          a registration mechanism for promoters
                                                                                                                                                                                                                RERA IMPLEMENTATION SCORE
                                                                                                             under the scanner for perceived dilution        and agents first. As of 30 November 2017,
                                                                                                                                                                                                                (Maximum score: 4)
                                                                                                             of central guidelines. Delayed notification     60% of Indian cities under our review had
                                                                                                             of real estate rules put consumers in           started registration of real estate projects
                                                                                                             a dilemma regarding ascertaining the            through online mode. The Maharashtra

                                                                                                                                                                                                                                                                                     Total score
                                                                                                                                                                                                                        City name
                                                                                                             eligibility of projects under RERA. A major     government’s proactive establishment of

                                                                                                                                                                                                                                                                          Stage IV
                                                                                                                                                                                                                                                              Stage III
                                                                                                                                                                                                                                                   Stage II
                                                                                                                                                                                                                                         Stage I
                                                                                                             bone of contention is the interpretation        a real estate authority and an online portal
                                                                                                             of the term “ongoing project” by some           has put Mumbai and Pune far ahead of
                                                                                                             states, which provide many relaxations          other cities in terms of RERA compliance.
                                                                                                                                                                                                                Ahmedabad                 1          1          1           0          3
                                                                                                             to builders. Consequently, homebuyers           Recently, Maharashtra also designated
                                                                                                             in states like Karnataka, Haryana, Tamil        the Maharashtra Revenue Tribunal to be
                                                                                                                                                                                                                Bengaluru*                1          1          1           1           4
                                                                                                             Nadu, Telangana and Uttar Pradesh are           the Appellate Tribunal to hear appeals
                                                                                                             disappointed as a vast proportion of under-     against the rulings of MahaRERA. While             Chennai                   1          1          1           0           3
                                                                                                             construction projects will now not come         the Karnataka government concurrently
                                                                                                             within the purview of the Act.                  announced the establishment of both                Delhi                     1          1          0           0           2
                                                                                                                                                             the Interim Real Estate Authority and the
                                                                                                                                                             Interim Appellate Tribunal, the availability of    Gurugram**                1          1          0           0           2
                                                                                                             TIME TO PULL UP THE SOCKS                       detailed project level information still needs
                                                                                                                                                             work. NCR (comprising Delhi, Gurugram              Hyderabad***              1          1          0           0           2
                                                                                                             It has been more than a year and a half

                       RERA:
                                                                                                                                                             and Noida) is the worst hit, as all the three
                                                                                                             since RERA was envisaged for nationwide
                                                                                                                                                             state governments (Delhi, Haryana and              Kolkata#                  0          0          0           0           0
                                                                                                             implementation. Initially, the following
                                                                                                                                                             Uttar Pradesh) have a low adoption rate of
                                                                                                             timelines were prescribed by the Centre.                                                           Mumbai##                  1          1          1           1           4
                                                                                                                                                             RERA across various parameters. Hence,
                                                                                                             Notification of the Act at the respective       most of the states will take further time
                                                                                                             state latest by 31 October 2016 was the                                                            Noida                     1          1          1           0           3
                                                                                                                                                             for a well-ordered RERA implementation.

           REALITY OF REFORMS
                                                                                                             first step towards setting up the machinery.    In the absence of a permanent real estate
                                                                                                                                                                                                                Pune##                    1          1          1           1           4
                                                                                                                                                             regulator and appellate tribunal, the
                                                                                                                                                             efficacy with which consumer disputes can
                       -By Divya Grover                                                                                                                      be resolved remains a big question mark.
                                                                                                                     30 April 2017
                                                                                                                                                             CITY WISE PROGRESS                                                        STAGE I :
                       IS CONSUMER THE KING?                                                                         Establishment of Appellate
                                                                                                                     Tribunal, latest by                     Except for West Bengal, most states have                        Real Estate Rules Notified
                       Due to the unregulated nature of India’s real estate sector, fundamental problems
Delayed                associated with dispute resolution and delayed project deliveries had long skewed
                                                                                                                                                             notified the real estate regulations by now.                              STAGE II :
                                                                                                                     30 April 2017                           This in itself was a long-winded process.
notification of real   the balance in favour of supply-side stakeholders. Growing consumer agitation on
                                                                                                                     Establishment of the                    As a result, it prolonged the enforcement          Establishment of Real Estate Regulatory
                       social media, increasing complaints against builders and outreach to quasi-judicial
estate rules put       commissions forced the government to sit up and take notice of the aggrieved
                                                                                                                     Regulatory Authority, latest by         of real estate reforms and delayed the                            Authority
                                                                                                                                                             recovery cycle in major Indian cities. As
consumers in a         homebuyers’ plight. With this objective to safeguard consumers’ interests, the
                                                                                                                     31 October 2016                         per the data available on the website of
                                                                                                                                                                                                                                      STAGE III :
                       Government of India enforced the Real Estate (Regulation and Development) Act,
dilemma regarding      2016 nationwide on 1 May 2017.                                                                Date within which the Real              the Ministry of Housing and Urban Poverty                              Functional Portal

                                                                                                                     Estate Rules had to be notified         Alleviation (MHUPA), as of 30 November                                   STAGE IV :
ascertaining           For a sector that did not have any regulatory structure governing the behaviour               by the state government                 2017 only Maharashtra, Madhya Pradesh
                                                                                                                                                                                                                 Establishment of Real Estate Appellate
the eligibility of     of its participants, this historic move was heralded as an inflection point that
                                                                                                                     26 March 2016
                                                                                                                                                             and Punjab have established a permanent
                       will change the manner in which real estate is transacted in India. Provisions                                                                                                                          Tribunal
                                                                                                                                                             Real Estate Regulatory Authority, while 15
projects under         such as mandatory disclosures by promoters were targeted to weed out fly-                     The Real Estate (Regulation and         others only have interim authorities. Since
                                                                                                                     Development) Act, 2016
RERA.                  by-night operators and bring financial discipline, which will spike investors’
                                                                                                                     published in the Official Gazette
                                                                                                                                                             different states are at a different stage in
                                                                                                                     after Presidential Assent               RERA compliance, city wise progress has
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INDIA REAL ESTATE - RESEARCH - Knight Frank
RESEARCH                                                                                                                                                                                                                                                    INDIA REAL ESTATE

                                                                                                                                                      STRENGTHENING REGULATOR                           real estate regulatory portals are of little use
                                                                                                                                                      PORTALS THE NEED OF THE HOUR                      in their current form. They require a massive
     RERA IMPLEMENTATION SCORE (Maximum score: 4)                                                                                                                                                       upgrade in terms of:                               There is an
                                                                                                                                                      Technology is an enabler to RERA
                                                                                                                                                      compliance. Though access to registered           a)	addition of all registered projects to their
                                                                                                                                                                                                                                                           acute need to
               implemented                         unimplemented
                                                                                                                                                      real estate agents on the regulators’ portal          online repositories                            create a user-
                                                                                                                                                      has eased a lot of confusion about who is
                                                                                                                                                      authorised to sell real estate, most cities are   b)	addition of more data points to enhance
                                                                                                                                                                                                                                                           oriented technical
 4
                                                                                                                                                      far behind in providing an end-to-end, web-           transparency                                   infrastructure that
                                                                                                                                                      based system for consumers despite having
                                                                                                                                                      functional portals. Lack of information on        c)	enhanced user interface on portals
                                                                                                                                                                                                                                                           can guide buyers
 3                                                                                                                                                    portals such as disclosure about registered           that assist homebuyers and increase            in due diligence
                                                                                                                                                      projects, promoter information, approvals,            consumer experience
                                                                                                                                                      stage-wise completion updates and
                                                                                                                                                                                                                                                           and enable data-
                                                                                                                                                      ongoing litigation brings the consumers           Central RERA stipulates that promoters             driven decision
 2                                                                                                                                                    back to square one. These are requisite           have to submit many documents for
                                                                                                                                                      information parameters for a consumer to          registration. Data mining and analysis of the      making.
                                                                                                                                                      assess project performance, which foster          data hence collected must be available on
                                                                                                                                                      transparency in real estate data and instill      the RERA website for consumers to assess
 1                                                                                                                                                    confidence. Maharashtra is the only state         the developers’ past performance smoothly.
                                                                                                                                                      with detailed project level pages providing
                                                                                                                                                      relevant information such as number of            PUBLIC VIEWING SCORECARD FOR
 0                                                                                                                                                    units along with carpet area, revised dates       PROJECT-LEVEL PARAMETERS ON
                                                                                                                                                      of project completion, building wise break        RERA PORTALS IN KEY CITIES
                      AHEMDABAD

                                      BENGALURU*

                                                         CHENNAI

                                                                     DELHI

                                                                                   GURUGRAM**

                                                                                                HYDERABAD***

                                                                                                               KOLKATA#

                                                                                                                                             PUNE##
                                                                                                                                     NOIDA
                                                                                                                          MUMBAI##
                                                                                                                                                      up of configurations along with available
                                                                                                                                                      and sold units, copies of sanctioned              Every state’s RERA portal prominently
                                                                                                                                                      building plans, amongst others. Consumers         displays the RERA Registration Numbers
                                                                                                                                                      can search simply on the MahaRERA                 for each project. Based on the information
                                                                                                                                                      website by the developer’s name as well           accessible for public viewing, we have
                                                                                                                                                      as RERA registration number to access             developed a scorecard across the top cities
Source: Knight Frank Research, Ministry of Housing and Urban Poverty Alleviation
                                                                                                                                                      this information. While other state RERA          taking into account pivotal information
                                                                                                                                                      websites do allow basic searchability,            parameters regarding project-level data
Notes:
                                                                                                                                                      minute project level details are still not        availability, promoter information and legal
*The Government of Karnataka has appointed Karnataka Appellate Tribunal as the Interim Appellate Tribunal
                                                                                                                                                      available in many states. There is an acute       details and uploaded documents. If the
**Haryana is likely to set up the real estate regulatory authority by the end of this year. The Haryana government has been accepting registra-
                                                                                                                                                      need to create a user-oriented technical          parameter information is available on the
tion applications offline, for now.
                                                                                                                                                      infrastructure that can guide buyers in due       RERA website, it is scored as 1, indicating
***The Telangana government has notified the RERA rules and is in the process of setting up the authority.
                                                                                                                                                      diligence and enable data-driven decision         transparency, else 0, indicative of non-
#West Bengal has drafted the West Bengal Housing Industry Regulation Act but it is yet to be notified.
                                                                                                                                                      making. For consumers used to accessing           transparency as per the respective city.
##The Government of Maharashtra has recently designated the Maharashtra Revenue Tribunal to be the Appellate Tribunal to hear appeals
against MahaRERA.                                                                                                                                     real estate information through third party
Both permanent and interim Real Estate Regulatory Authorities and Appellate Tribunals have been taken into account for progress.                      sources in the public domain, state level
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INDIA REAL ESTATE - RESEARCH - Knight Frank
RESEARCH                                                                                                                                                                                                                                        INDIA REAL ESTATE

RERA TRANSPARENCY SCORE (Maximum score: 15)                                     Transparent      Non-Transparent                              MOVING TOWARDS FULL                              Though things are falling into place, the
                                                                                                                                              TRANSPARENCY IN REAL ESTATE                      pace of creating physical infrastructure
                                                                                                                                              TRANSACTIONS                                     like setting up regulator’s offices and         For consumers used
 City                         Ahmedabad         Bengaluru   Chennai     Delhi   Gurugram1     Hyderabad2   Kolkata3   Mumbai   Noida   Pune                                                    hiring officials can be quickened. All states
                                                                                                                                              MahaRERA leads the country in terms of
                                                                                                                                                                                                                                               to accessing real
                                                                                                                                                                                               need to invest heavily to create technically
                                                                                                                                              dissemination of real estate information to      superior and information-rich portals, which    estate information
                                                              PROJECT-LEVEL INFORMATION
                                                                                                                                              consumers as it is the first state in India to   will serve as a primary source of real estate
                                                                                                                                              adopt RERA. For other states, Maharashtra
                                                                                                                                                                                                                                               through third party
                                                                                                                                                                                               information to all stakeholders. Until date,
 Project name                        1               1         1         NR        NR            NR          NR         1       1       1
                                                                                                                                              has evolved as a benchmark in gradual            ambiguity remains as to when this exercise      sources in the public
                                                                                                                                              and seamless transition to the new order         will be completed and the next one year
 Project type                        1               1         1         NR        NR            NR          NR         1       1       1
                                                                                                                                              of the day. One that is moving towards full
                                                                                                                                                                                                                                               domain, state level
                                                                                                                                                                                               is crucial to the speedy implementation
 Location                            1               1         1         NR        NR            NR          NR         1       1       1     transparency in real estate transactions.        on all aspects. In the current scenario,        real estate regulatory
                                                                                                                                              In a span of less than 18 months, it has         homebuyers will have to wait a little longer
                                                                                                                                              completed the entire cycle of the RERA
                                                                                                                                                                                                                                               portals are of little
 Carpet area                         1               1         1         NR        NR            NR          NR         1       1       1                                                      before rejoicing.
                                                                                                                                              implementation process. However, for                                                             use in their current
 No. of units                        1               0         1         NR        NR            NR          NR         1       0       1     several other states, which have failed to
                                                                                                                                              keep pace in terms of RERA compliance,
                                                                                                                                                                                                                                               form.
 Configuration                       1               0         1         NR        NR            NR          NR         1       0       1     the newly formed (interim) authorities are
                                                                                                                                              struggling to process the vast number
 No. of booked units                 0               0         1         NR        NR            NR          NR         1       0       1     of applications received from real estate
                                                                                                                                              developers and agents and instantly
 Status                              1               1         1         NR        NR            NR          NR         1       1       1     generate RERA registration numbers. While
                                                                                                                                              homebuyers in Hyderabad, Kolkata, Delhi
 Completion date                     1               0         1         NR        NR            NR          NR         1       1       1
                                                                                                                                              and Gurugram will have to wait longer
                                                                                                                                              for accessing state level regulator data,
                                                                   PROMOTER INFORMATION
                                                                                                                                              those in Ahmedabad, Noida, Chennai and
                                                                                                                                              Bengaluru will largely benefit once available
 Promoter name                       1               1         1         NR        NR            NR          NR         1       1       1
                                                                                                                                              information is supplemented with additional
 Contact information                 1               0         1         NR        NR            NR          NR         1       1       1     data to provide a holistic project level
                                                                                                                                              overview.
 Past experience                     0               0         1         NR        NR            NR          NR         1       0       1
 details

                                                         LEGAL DETAILS AND UPLOADED DOCUMENTS

 Title report                        0               0         0         NR        NR            NR          NR         1       1       1

 Encumbrances                        0               0         0         NR        NR            NR          NR         1       1       1

 Project approvals                   0               0         1         NR        NR            NR          NR         1       1       1

 TOTAL SCORE                        10               6         13        NR        NR            NR          NR         15      11      15

Source: Knight Frank Research, State RERA websites

Notes:
Scoring is done only based on the information available on the regulators’ websites as of 30 November 2017. They are subject to
change as different states update their RERA portals. Cities where documents may have been collected by authorities but not made
available on the regulator website have also suffered on the scoring.
States where RERA portals are not functional have been denoted as “Not Rated” (NR).
1Haryana is yet to set up the Real Estate Regulatory Authority’s portal.
2The Telangana government has notified the RERA rules and is in the process of setting up the authority.
3The West Bengal state assembly passed the West Bengal Housing Industry Regulation Bill 2017 in August 2017 but the website is yet
to go live.
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INDIA REAL ESTATE - RESEARCH - Knight Frank
RESEARCH                                                                                                                                                                                                                INDIA REAL ESTATE

                                                                                                                INDIA MARKET SNAPSHOT

                                                                                                                  PARAMETER                                   H2 2017           Change YoY              2016               2017            Change YoY

                                                                                                                  Launches (housing units)                    40,832               -41%               1,75,822           1,03,570              -41%

                                                                                                                  Sales (housing units)                       1,07,316              -2%               2,44,686           2,28,072              -7%

                                                                                                                  Unsold inventory (housing units)            5,28,494             -19%               6,52,996           5,28,494              -19%

                                                                                                                  Quarters to sell                             11.2                   -                 11.3               11.2                  -

                                                                                                                Source: Knight Frank Research

                                                                                                                •	Deep in the grip of a market downturn,         meltdown in market volumes can                    when seen in conjunction with the
                                                                                                                   the Indian residential market has              be gauged from the fact that annual               age of unsold inventory that has been
                                                                                                                   breached new lows in terms of supply           supply levels in the Indian real estate           progressively increasing across the 8
                                                                                                                   and sales for every successive year            residential market are now just one               major cities.
                                                                                                                   of this decade. Despite the massive            fourth of those in 2015. The NCR is the
                                                                                                                                                                                                                 •	Weighted average prices have fallen an
                                                                                                                   need for housing that India is facing,         most affected market with its annual
                                                                                                                                                                                                                    average of 3% across cities with Pune
                                                                                                                   huge unsold inventories caused by              supply volume at just 7% of its decadal
                                                                                                                                                                                                                    seeing the most decline at 7% YoY.
                                                                                                                   a prolonged focus of the developers            high.
                                                                                                                                                                                                                    Even Mumbai residential prices have
                                                                                                                   on the wrong apartment ticket sizes
                                                                                                                                                               •	While the de-growth in residential                finally cracked and fallen 5% in 2017.
                                                                                                                   have brought the residential real estate
                                                                                                                                                                  supply has been getting progressively             Hyderabad and Ahmedabad saw prices
                                                                                                                   industry to its knees.
                                                                                                                                                                  worse, that of demand has been                    move up 3% and 2% respectively
                                                                                                                •	Vast unsold inventory levels that              relatively muted. Down 7% YoY,                    due to the high proportion of ready
                                                                                                                   peaked in 2014 at 0.72 Mn units                approximately 0.23 Mn units were                  inventory in these markets and a more
                                                                                                                   forced developers to curtail supplies          sold during 2017 compared to a little             exacerbated supply crunch caused

                                INDIA
                                                                                                                   in a bid to lighten this inventory             over 0.1 Mn units launched. Notably,              by a 70% and 66% YoY fall in units
                                                                                                                   load. This course of action has seen           Mumbai and Pune saw marginal growth               launched during 2017 respectively.
                                                                                                                   reasonable success even in the                 in sales which can be attributed to the
                                                                                                                                                                                                                 •	During the last four years, the growth
                                                                                                                   face of lacklustre demand as unsold            5% and 7% drop YoY in prices for 2017.
                                                                                                                                                                                                                    in residential prices in most of the top
                                                                                                                   inventory levels have fallen 24% since         Also, the fact that Maharashtra is the
                                                                                                                                                                                                                    eight cities of India has been below
                                                                                                                   H2 2015. However, tumultuous events            only state that has applied the RERA
                                RESIDENTIAL MARKET                                                                 over the past 14 months that saw               in letter and spirit has played a part in
                                                                                                                                                                                                                    retail inflation growth and the gap has
                                                                                                                                                                                                                    progressively increased since H1 2016.
                                                                                                                   the government aggressively push               boosting consumer confidence.
                                                                                                                                                                                                                    This has in fact significantly improved
                                                                                                                   a culture of transparency through
                                                                                                                                                               •	NCR and Mumbai saw sales numbers                  home affordability and average ticket
                                                                                                                   measures such as Demonetisation,
                                                                                                                                                                  increase by 21% and 19% YoY                       sizes of housing units in most cities are
                                                                                                                   Goods and Services Tax (GST) and
                                                                                                                                                                  respectively during H2 2017 but this              now inching closer or are below the
                                                                                                                   the Real Estate (Regulation and
                                                                                                                                                                  can be attributed to the extremely                Knight Frank Affordability Benchmark
                                                                                                                   Development) Act, 2017 (RERA) have
While the de-growth in                                                                                             irrevocably altered the course of the
                                                                                                                                                                  low sales during H2 2016 caused                   of 4.5 times the annual household
                                                                                                                                                                  by the Demonetisation drive carried               income of the city.
residential supply has been                                                                                        industry.
                                                                                                                                                                  out by the government. The H2 2017
                                                                                                                                                                                                                 •	The long awaited drop in prices is a
getting progressively worse,                                                                                    •	Measures such as the RERA and the              sales numbers of these cities are
                                                                                                                                                                                                                    healthy step toward market recovery
                                                                                                                   Pradhan Mantri Awas Yojana (PMAY)              still significantly lower than previous
that of demand has been

                                -38% -78%
                                                                                                                                                                                                                    as this along with other measures such
                                                                                                                   that were expected to boost sentiments         periods of H2 2015 and H2 2014 clearly
                                                                                                                                                                                                                    as reduction in unit sizes across cities
relatively muted. Down 7%                                                                                          of the home-buyer, have yet to make            depicting an underlying declining trend.
                                                                                                                                                                                                                    will boost home-buyer affordability
                                                                                                                   any significant market impact on the
YoY, approximately 0.23 Mn                                                                                         buyer who has little incentive to buy
                                                                                                                                                               •	The current QTS level stands marginally           and eventually get buyers back to the
                                                                                                                                                                  lower at 11.2 quarters at the end of              market. The pace at which developers
units were sold during 2017                                                                                        now as the unaffordably high prices
                                                                                                                                                                  2017 compared to 11.3 quarters for the            align themselves to the new regulatory
                                 Decline in Sales in 2017, since the   Decline in Launches in 2017, since the      continue to weaken and fall.
compared to a little over 0.1    peak in 2011                          peak in 2010
                                                                                                                                                                  previous year; however this is more               norms and launch new products in
                                                                                                                •	Clocking the largest percentage drop           a function of the severe curtailment              the right ticket sizes that appeal to the
Mn units launched                                                                                                  in supply volumes during this decade,          in housing units launched rather than             homebuyer’s interests, will determine
                                                                                                                   2017 has definitely turned out to be a         an uptick in sales and hence cannot               the trajectory of the market going
                                                                                                                   seminal year for the Indian residential        be interpreted as a sign of a healthy             forward.
                                                                                                                   real estate market. The scale of the           market. This is further substantiated
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INDIA REAL ESTATE - RESEARCH - Knight Frank
INDIA REAL ESTATE

            HOUSE PRICE TO INCOME RATIO

                                                                                                           HOUSE PRICE TO INCOME RATIO

                              CITY                                                                                                                             2010                                                 2017

                                                                                                                                                                                                                                                    -70%
                              Mumbai                                                                                                                           11.0                                                   7.8

                              NCR                                                                                                                              6.0                                                    5.0

                              Bengaluru                                                                                                                        5.6                                                    4.4
                                                                                                                                                                                                                                                    Maximum YoY decline in Launches seen
                                                                                                                                                                                                                                                    in Hyderabad during 2017
                              Pune                                                                                                                             4.6                                                    3.4

                              Chennai                                                                                                                          5.4                                                    4.7

                              Hyderabad                                                                                                                        5.7                                                    5.0

                              Kolkata                                                                                                                          5.7                                                    3.5

                              Ahmedabad                                                                                                                        4.3                                                    3.5

            Note: Knight Frank Affordability Benchmark is 4.5 times household income
            Source: MOSPI, Knight Frank Research

          CONSUMER PRICE INFLATION WELL ABOVE REAL ESTATE PRICE GROWTH

                              130
                                                                                                                                                                                                                              CPI

                              125
                                                                                                                                                                                                                          HYDERABAD

                                                                                                                                                                                                                              BENGALURU
                              120
                                                                                                                                                                                                          MUMBAI
Index value (Q1 2013 = 100)

                                                                                                                                                                                                         PUNE
                              115                                                                                                                                                                                             AHMEDABAD

                                                                                                                                                                                             CHENNAI

                              110

                                                                                                                                                                                                         KOLKATA
                              105

                                                                                                                                                                                                     NCR
                              100
                                     Q1-2013

                                               Q2-2013

                                                         Q3-2013

                                                                   Q4-2013

                                                                             Q1-2014

                                                                                       Q2-2014

                                                                                                 Q3-2014

                                                                                                             Q4-2014

                                                                                                                       Q1-2015

                                                                                                                                 Q2-2015

                                                                                                                                           Q3-2015

                                                                                                                                                     Q4-2015

                                                                                                                                                               Q1-2016

                                                                                                                                                                         Q2-2016

                                                                                                                                                                                   Q3-2016

                                                                                                                                                                                               Q4-2016

                                                                                                                                                                                                          Q1-2017

                                                                                                                                                                                                                    Q2-2017

                                                                                                                                                                                                                                Q3-2017

                                                                                                                                                                                                                                          Q4-2017

                               95

                     Note: November CPI used for Q4 2017

                                                                                                                                                                                                                                                                                           15
INDIA REAL ESTATE - RESEARCH - Knight Frank
RESEARCH                                                                                                                                                                                                                                                                               INDIA REAL ESTATE

     RESIDENTIAL                                                                                                                                                                                                                                        RESIDENTIAL
     LAUNCHES AND SALES                                                                                                                                                                                                                            UNSOLD INVENTORY
              LAUNCHES (IN UNITS)                                  SALES (IN UNITS)                                                                                                                                                                          UNSOLD INVENTORY (IN UNITS)                  QUARTERS TO SELL
                                                                                               % CHANGE (YOY)
                                                                                                                                                                                                                                                                             AGE OF UNSOLD INVENTORY (IN QUARTERS)
                                                                                                                                                                                                                                                                                                       AS ON 31 DEC 2017

                                                                  6,926
                                                                   -25%
                                                                  H2 2017

                                                                 20,465
                                                                   21%
                                                                                      11,726
                                                                                       -56%
                                                                                       2017

                                                                                      37,653
                                                                                       -6%
                                                                                                                                     -26%
                                                                                                                                     Maximum YoY drop in Sales seen in Bengaluru
                                                                                                                                                                                                                    1,66,831
                                                                                                                                                                                                                         (-13%)
                                                                                                                                                                                                                                        17.2

                                                                                                                                                                                                                                        18.5
                                                                                                                                     during 2017
                                                                             NCR                                                                                                                                                  NCR

                    2,916                                 4,790                                                        6,176               15,940
                       -44%                                -66%                                                         -32%                 -24%
                                                                                                                                                                                              26,884               7                                                           39,252              12.1
                     H2 2017                               2017                                                        H2 2017               2017
                                                                                                                                                                                               (-29%)                                                                            (5%)
                    7,800                             15,741                                                           6,038               14,147                                                                 10.3                                                                             12.1
                        5%                                  -1%                                                         -17%                 -20%

                               AHMEDABAD                                                                                          KOLKATA                                                          AHMEDABAD                                                                        KOLKATA

                 7,490                             23,253
                    -23%                                  -32%
                                                                            4,800               12,705                                                                                        1,15,964             7.6
                  H2 2017                                 2017
                                                                             -58%                 -37%                                                                                          (-25%)
                                                                                                                                                                                                                                   28,455              3.4
                30,179                             62,256                   H2 2017               2017                                                                                                            15.6
                     19%                                  3%                                                                                                                                                                        (-43%)
                                                                            16,486              33,966                                                                                                                                             12.6
                                                                             -2%                  5%
                                       MUMBAI                                                                                                                                                            MUMBAI
                                                                     PUNE                                   940                  3,511                                                                                    PUNE
                                                                                                             -84%                 -70%
                                                                                                            H2 2017               2017                                                                                                                          17,356                   5
                                                                                        HYDERABAD                                                                                                                                        HYDERABAD
                                                                                                           6,342                 14,243                                                                                                                           (-38%)
                                                                                                             -13%                 -8%                                                                                                                                                   17.8

8,384                            22,410
  -37%                               -41%
H2 2017                              2017

13,336                           34,546                                                                     3,200                 9,235                                                                  10.6
  -34%                               -26%                        BENGALURU                                      -33%               -13%                                            1,09,112                         BENGALURU
                                                                                              CHENNAI        H2 2017               2017                                                                                                      CHENNAI              24,640                 6.2
                                                                                                                                                                                     (-10%)
                                                                                                            6,670                15,520                                                                  13.0                                                       (-20%)
                                                                                                                -14%               -4%                                                                                                                                                   14.2

                                                                                                                                                                                                                                                                                                All maps are for representational purpose not to scale
 All maps are for representational purpose not to scale
  16

                                                                                                                                                                                                                                                                                                                                                17
INDIA REAL ESTATE - RESEARCH - Knight Frank
RESEARCH                                                                                                                                                                                                                                                          INDIA REAL ESTATE

RESIDENTIAL                                                                                                                                                                                             OFFICE MARKET
PRICING                                                                                                                                                  INDIA MARKET SNAPSHOT
         WEIGHTED AVERAGE PRICE IN H2 2017 (INR/SQ.FT.)
                                                                                                                                                           PARAMETER                                     H2 2017             Change YoY              2016              2017                Change YoY
         12 MONTH CHANGE (YOY)                                 6 MONTH CHANGE (YOY)
                                                                                                                                                           New completions (mn sq ft)                     12.5                   13%                  30.7             32.7                      7%

                                                                                                                                                           Transactions (mn sq ft)                        22.5                    9%                  41.6             41.7                      0.1%

                                                                                                         7.3%
                                                                                                                                                           Weighted Average Rental                          -                      -                  68                72                       3%
                                                                                                                                                           (INR/sq ft/month)

                                                                                                                                                           Stock (Mn sq ft)                                 -                      -                  599              631                       5%
                                                                     4,165
                                                                     [-2%] [-2%]                       Maximum YoY decline in Prices seen in Pune in     Vacancy (%)                                      -                      -                13.5%             11.6%                       -
                                                                                                         H2 2017
                                                                   NCR                                                                                   Source: Knight Frank Research

                                                                                                                                                         •	The Indian office space market has                  almost that of the IT/ITeS sector at 36%
                                                                                                                                                            been plagued by an abject lack of viable            in the recently concluded period, on the      SECTOR-WISE SPLIT OF
                                                                                                                                                            office space over the past four years               back of increased take up by ecom-            TRANSACTIONS
                                                                                                                                                            while demand has stayed dogged-                     merce and Co-working companies.
                                                                                                                                                            ly steady. This slide in office space
                                                                                                                                                            development has been arrested in 2017         •	The Co-working phenomenon is
                                                                                                                                                            with supply growing by 7% in annual              gathering speed in India and this can
                                           2,820                                                          3,395
                                                                                                          [-5%] [-5%]                                     terms with a much more pronounced                be observed in the increasing quantum
                                           [2%] [1.8%]
                                                                                                                                                            13% growth YoY during H2 2017.                   of space companies such as Coworks,
                                                                                                                                                                                                                                                                                H2 2016
                              AHMEDABAD                                                                KOLKATA                                              However, overall transactions continue           Wework, Daftar India and Awfis which
                                                                                                                                                            to substantially exceed supply and this          have been taking up space in Mumbai,
                                                                                                                                                            has pulled down the vacancy levels to            Bengaluru, Pune and the NCR. Across
                                                                                                                                                            11.6% from 13.5% a year ago.                     the top 7 cities, such co-working space
                      7,717                                                                                                                                                                                  providers have taken up around ap-
           [-5%] [-4.1%]                                                                                                                               •	Consistently falling since H1 2012, the          proximately 1.3 Mn sqft of office space
                                                              4,508                                                                                         vacancy level is at a decadal low. The           during H2 2017, a significant growth
                                                              [-7%] [-7.3%]
                                                                                                                                                            abject lack of fresh office space is most        over H2 2017.
                                      MUMBAI                                      3,821
                                                                                                                                                            visible in the IT/ITeS sector dominat-
                                                                                  [3%] [3%]
                                                           PUNE                                                                                             ed markets of Bengaluru, Pune and             •	Rental growth has been strong across                                H2 2017
                                                                                                                                                            Hyderabad that currently have single             markets with the exception of Mumbai
                                                                           HYDERABAD                                                                        digit vacancy levels at 3%, 6% and               which experienced a 5% de-growth
                                                                                                                                                            5% respectively while Chennai stands             due to increasing supply and vacancy
                                                                                                                                                            precariously poised at 10%.                      levels. Average rental values across the
                                                      4,589                                                                                                                                                  seven cities grew at 3% YOY during H2
                                              [-5%] [-5%]                          4,525                                                               •	The IT/ITeS sector share in transactions         2017. While Mumbai saw flat YoY rental
                                                                                     [-3%] [-3.7%]
                                                                                                                                                            has increasingly been showing signs              growth, Hyderabad and Bengaluru
                                                         BENGALURU                                                                                          of weakening in recent periods due to            experienced the strongest rental growth                                      H2             H2
                                                                                CHENNAI                                                                                                                                                                             Industry
                                                                                                                                                            macro headwinds in the form of a slow-           at 8.5% and 9.2% YoY respectively.                                           2016           2017
                                                                                                                                                            down in spending as well as an inclina-
                                                                                                                                                            tion to insource by the USA and several                                                                BFSI                  13%            14%
                                                                                                                                                            European countries. Losing ground
                                                                                                                                                            since H2 2016, it accounted for 37% of                                                                 IT/ITeS               49%            37%
                                                                                                                                                            the transacted volume compared to the
                                                                                                                                                            49% in the previous period.                                                                            Manufacturing         17%            14%

                                                                                                                                                         •	The Other Services sector share has                                                                    Other Services        21%            36%
                                                                                                                                                            jumped up from 21% in H2 2016 to                                                                 Note: BFSI includes BFSI support services
All maps are for representational purpose not to scale
 18

                                                                                                                                                                                                                                                                                                                19
RESEARCH                                                                                                                                                                                                                                                  INDIA REAL ESTATE

 OFFICE                                                                                                                                                                                                                                         OFFICE RENTAL
 TRANSACTIONS                                                                                                                                                                                                                          WEIGHTED AVERAGE RENT IN H2 2017 (INR/SQ.FT./MONTH)

                                                                                                                                                                                                                                                  12 MONTH CHANGE                6 MONTH CHANGE
         COMPLETIONS (MN SQ FT)                                          TRANSACTIONS (MN SQ FT)        % CHANGE (YOY)

                                                                  2.3
                                                                  -28%
                                                                 H2 2017

                                                                  3.2
                                                                  -15%
                                                                                       4.1
                                                                                       -10%
                                                                                       2017

                                                                                       6.4
                                                                                       -12%
                                                                                                                            18%
                                                                                                                            YoY increase in Transactions in Pune during 2017
                                                                                                                                                                                                           75
                                                                                                                                                                                                                        2.5%

                                                                                                                                                                                                                        0%

                                                                              NCR                                                                                                                                 NCR

                      0.7                                 2.9
                      -36%                                 75%                                                                                                                                     -4.8%
                    H2 2017                               2017                                                                                                                       40
                      0.3                                 1.5                                                                                                                                        -
                       61%                                 54%

                              AHMEDABAD                                                                                                                                               AHMEDABAD

                   2.8                               10.4
                                                                                                                                                                                                 -5%
                                                                                                                                                                                    115
                   190%                                  76%
                 H2 2017                                 2017
                                                                              0.4                2.1
                                                                              -71%               -17%
                                                                                                                                                                                                 -2%                                 5%
                   4.4
                    35%
                                                         7.5
                                                         6%
                                                                             H2 2017             2017                                                                                                                   63
                                                                              2.7                4.5                                                                                                                                 3.3%
                                                                              51%                 18%
                                      MUMBAI                                                                                                                                              MUMBAI
                                                                    PUNE                                  1.3            3.2                                                                               PUNE
                                                                                                                                                                                                                                                            8.5%
                                                                                                          -48%
                                                                                                         H2 2017
                                                                                                                         -46%
                                                                                                                         2017
                                                                                                                                                                                                                                               51
                                                                                        HYDERABAD                                                                                                                       HYDERABAD                           4.1%
                                                                                                          3.3            5.7
                                                                                                           4%            -6%

                                                                                                                                                                                          9.2%
 4.4
 26%
                                    8.1
                                    -15%
                                                                                                                                                                               63
H2 2017                             2017
                                                                                                                                                                                          5%
                                                                                                           0.8            1.8                                                                                                                              4.5%
 5.9                              11.7                                                                                                                                                                                                       57
 12%                                 3%                         BENGALURU                                  314%           243%                                                                       BENGALURU
                                                                                              CHENNAI     H2 2017         2017                                                                                             CHENNAI                         3.5%
                                                                                                           2.6            4.5
                                                                                                           -17%           -12%

                                                                                                                                                                                                                                                                   All maps are for representational purpose not to scale
All maps are for representational purpose not to scale
 20

                                                                                                                                                                                                                                                                                                                   21
RESEARCH                                                                                                                                                                                                                                          INDIA REAL ESTATE

                                                                                                                                           THE GIFT DREAM                                  protests have been organized by the local       While the sector took time to understand
                                                                                                                                                                                           population demanding to be included             the policy measures introduced in 2017,
                                                                                                                                           The Gujarat Finance Tec-City, more
                                                                                                                                                                                           in the automobile boom that the region          and Ahmedabad was no different, most
                                                                                                                                           commonly known as GIFT City, is India’s
                                                                                                                                                                                           is undergoing. This issue also made             stakeholders in the city are of the view
                                                                                                                                           first global financial services and IT hub
                                                                                                                                                                                           headlines during the campaigns in the           that the future of the real estate sector
                                                                                                                                           coming up near the Ahmedabad airport.
                                                                                                                                                                                           recently concluded Gujarat elections. The       in Ahmedabad is going to be bright. The
                                                                                                                                           This dream project coming up in the north
                                                                                                                                                                                           state has no doubt taken great strides in       necessary systems and processes are
                                                                                                                                           of Ahmedabad has run in trouble over
                                                                                                                                                                                                                                           there in place and the fundamentals of
                                                                                                                                           height of some of its buildings and may
                                                                                                                                                                                                                                           the market are sound so there should be
                                                                                                                                           need to trim down the height of some of
                                                                                                                                           them. A study done by the International         The hard work put                               no looking back. What makes the deal
                                                                                                                                                                                                                                           sweet and attractive for Ahmedabad is that
                                                                                                                                           Civil Aviation Organisation recommended
                                                                                                                                                                                           in by the state in                              compared to other urban markets it offers
                                                                                                                                           heights ranging from 74 metres and 191
                                                                                                                                           metres for 52 high rises in GIFT City           this department is                              a plethora of real estate options and that
                                                                                                                                                                                                                                           too at very competitive rates. As regards
                                                                                                                                           against requests for heights from 68
                                                                                                                                                                                           evident from the                                the minor niggles that have cropped up, we
                                                                                                                                           metres to 474 metres. A committee of
                                                                                                                                           the aviation ministry has also approved         fact that till the                              believe should get solved before they make
                                                                                                                                                                                                                                           any serious dent on the flourishing real
                                                                                                                                           the findings of this six-month study. The
                                                                                                                                                                                           end of November                                 estate sector in the city.
                                                                                                                                           need to trim down the height of some of
                                                                                                                                           the buildings in GIFT City comes as curbs       around 800 projects
                                                                                                                                           on high rises need to be maintained near
                                                                                                                                                                                           and 300 real estate
                                                                                                                                           airports in the interests of aviation safety.
                                                                                                                                           We still await clarity on the matter and        agents were
                                                                                                                                           hope that this issue will get resolved soon,
                                                                                                                                                                                           registered with the
                                                                                                                                           as it is one of the pet projects of Prime
                                                                                                                                           Minister Narendra Modi. Scaling down the        state authority.
                                                                                                                                           size of GIFT City will however, dent the
                                                                                                                                           image of this international financial hub
                                                                                                                                           as was envisioned. If that happens then
                                                                                                                                                                                           attracting automobile giants to this stretch,
                                                                                                                                           the real estate sector will have to bear the
                                                                                                                                                                                           it now needs to walk the extra mile to
                                                                                                                                           brunt as not only within GIFT City but also
                                                                                                                                                                                           ensure that this niggle gets resolved before
                                                                                                                                           in Ahmedabad. While the issue affecting
                                                                                                                                                                                           it gets out of control.
                                                                                                                                           GIFT is a technical one, the flourishing real
                                                                                                                                           estate sector in west Ahmedabad may start       GEARED UP FOR RERA
                                                                                                                                           feeling the heat for a very different reason.
                                                                                                                                                                                           For a state that is so efficiently managed,
                                                                                                                                           SOCIAL UNREST                                   we believe that the above-mentioned

                                      ONLY A MINOR NIGGLE
                                                                                                                                                                                           issues should get settled soon. This
                                                                                                                                           The automobile industry is one of the
                                                                                                                                                                                           efficient management has thrown up a
                                                                                                                                           major drivers of real estate in Ahmedabad,
                                                                                                                                                                                           bright spark for the real estate sector,
                                                                                                                                           especially in western part of the city.
                                                                                                                                                                                           in an otherwise dull period. Apart from
                                                                                                                                           The Sanand-Viramgam-Hansalpur belt
                                      -By Pankaj Anup Toppo                                                                                                                                Maharashtra and Madhya Pradesh, Gujarat
                                                                                                                                           has emerged as a major auto hub in the
                                                                                                                                                                                           has been the front runner in putting in
                                                                                                                                           western periphery of Ahmedabad. The
                                                                                                                                                                                           place systems and processes for the
                                                                                                                                           drive through this automobile belt is dotted

                                                                                                                                                                                                                                           5%
                                      “The recent past has not been too generous towards Gujarat. The present moment and                                                                   smooth implementation of the Real Estate
                                                                                                                                           with dozens of companies manufacturing
                                      the future is however, the time for Gujarat to move forward and Ahmedabad will lead that                                                             (Regulation and Development) Act, 2016
                                                                                                                                           auto components and restaurants serving
                                      march,” quipped one of the leading developers of Ahmedabad. Some may dismiss these                                                                   in the state. The hard work put in by the
                                                                                                                                           Japanese cuisine. “They even have menu
                                      tall claims as the voice of a passionate citizen of Ahmedabad but one cannot deny the                                                                state in this department is evident from
                                                                                                                                           cards printed in Japanese language,”
                                      fact in the recent past Ahmedabad has emerged as one of the major urban centres to                                                                   the fact that till end November around 800
                                                                                                                                           stated one of the developers. While

44
                                      have received undivided attention when it comes to urban development. All this to a great                                                            projects and 300 real estate agents were        Increase in sales in H2 2017 over
                                                                                                                                           growth of the automobile industry in this
                                      extent has helped in the rapid growth of real estate in the commercial capital of Gujarat.                                                           registered with the state authority. Most       H2 2016
                                                                                                                                           belt has opened up a plethora of jobs—
                                      What makes the real estate growth in the city more special is that it is not fuelled by the                                                          developers did speak about the teething

                             %
                                                                                                                                           but not for the local population—which
                                      IT industry but by industries like pharmaceuticals, financial services, textiles and of late,                                                        problems that they faced in getting their
                                                                                                                                           is their major grouse. It is largely the
                                      automobiles. The industrial push that Ahmedabad has witnessed has however, run into                                                                  projects registered. They did take time to
                                                                                                                                           migrant population that has benefitted
Dip in new launches in H2 2017 over   a minor niggle and we hope that those issues will soon be ironed out before it starts to                                                             understand the details of the rules but are
                                                                                                                                           from the boom in the automobile industry
H2 2016                               affect the real estate in the city. There is however, a bright spark for the real estate sector in                                                   happy that this new system will benefit the
                                                                                                                                           in this belt. In the recent past many
                                      Ahmedabad.                                                                                                                                           now sector in the long run.
22

                                                                                                                                                                                                                                                                                  23
RESEARCH                                                                                                                                                                                                                                    INDIA REAL ESTATE

                                                                                                                                   AHMEDABAD MARKET SNAPSHOT

                                                                                                                                     PARAMETER                                   H2 2017             Change YoY               2016             2017             Change YoY

                                                                                                                                     Launches (housing units)                     2,916                  (44%)               14,009            4,790               (66%)

                                                                                                                                     Sales (housing units)                        7,800                   5%                 15,956            15,741               (1%)

                                                                                                                                     Price (wt. avg.)                               -                     2%                  2,770            2,820                 2%

                                                                                                                                     Unsold inventory (housing units)               -                    (29%)               37,835            26,884              (29%)

                                                                                                                                     Quarters to sell                               -                      -                   8.6               7                    -

                                                                                                                                     Age of unsold inventory (in quarters)          -                      -                  10.6              10.3                  -

                                                                                                                                   Source: Knight Frank Research

                                                                                                                                       in H2 2017. Apart from the 2 above-              affordable housing projects is very              it. “Previously we used to get around
                                                                                                                                       mentioned locations in the south, micro          evident in Ahmedabad. Markets of                 600 walk-ins during the months of July
                                                                                                                                       markets like Vastrapur and Shilaj in             East and North Ahmedabad, which are              and August, this number went down to
                                                                                                                                       West Ahmedabad and Chandkheda in                 largely considered hubs for affordable           below 300,” stated the gentleman.
                                                                                                                                       North Ahmedabad saw the maximum                  housing projects witnessed close to
                                                                                                                                       launches in the city.                            60% of the sales in H2 2017. Even in          •	As already mentioned, even though
                                                                                                                                                                                        case of the entire year (2017), sales            new launches are higher than what
                                                                                                                                   •	While South Ahmedabad saw the bulk                from these 2 micro markets were close            Ahmedabad witnessed in H1 2017,
                                                                                                                                      of new launches, West Ahmedabad                   to 60%. This trend is in line with those         it is still way below the historic high

        AHMEDABAD
                                                                                                                                      came a close second followed by East              witnessed in H2 2016 and for the entire          witnessed in H1 2011 and is 44% down
                                                                                                                                      Ahmedabad and North Ahmedabad.                    year (2016).                                     compared to H2 2016. The low level of
                                                                                                                                      In H2 2017, there were few large scale                                                             new launches and steady sales has had
                                                                                                                                      new launches of close to 1,000 units        •	Due to its proximity to business districts          a bearing on the quarters to sell (QTS)
                                                                                                                                      in South Ahmedabad, which tilted the           along SG Highway and Sanand,                        and the existing unsold inventory. In H2

                                         RESIDENTIAL MARKET                                                                           scales in favour of this region.               West Ahmedabad in recent years has
                                                                                                                                                                                     been a favourite among homebuyers,
                                                                                                                                                                                                                                         2016, the QTS stood at 8.6 and this has
                                                                                                                                                                                                                                         come down to 7 in H2 2017. At present,
                                                                                                                                   •	Of the total units launched in H2              especially from those with white collar             the city has more than 26,800 unsold
                                         •	“This festive season has not been         •	Gujarat had put in place systems             2017, over 75% of the new launches             jobs. Over the past one year, the sales             units, which are in various stages of
                                            festive for us,” stated one of the           for smooth implementation of RERA            happened below the ticket size of              in West Ahmedabad have significantly                construction. The unsold inventory in
                                            developers during our meetings with          by 1 July 2017. There were teething          `5 mn.                                         improved. Of the total sales in the                 Ahmedabad is less than two years old,

49%
                                            them in the city. The sentiments             problems and it took developers                                                             city, the share of West Ahmedabad in                which is a sign of a very healthy market.
                                            echoed by the concerned gentlemen,           sometime to understand the new            •	The lack of available spaces and high          H2 2017 was 24% compared to 21%
                                            in short, gives a fair idea of what the      law. In most cases, it did take time         capital values in central Ahmedabad            during the same period last year. On             •	East Ahmedabad is one of the better
                                            performance of the residential property      for developers to get their projects         did not infuse much confidence in              a year-on-year (YoY) comparison, the                performing markets in the city, which
                                            market was in Ahmedabad in H2 2017.          registered, especially in the months of      developers in this micro market.               share of West Ahmedabad, in 2017,                   attests the homebuyers’ affinity towards
  Decline in sales in 2017, since the                                                    July and August. Things have however,                                                       increased to 26% compared to 19% in                 affordable houses. This micro market
  peak in 2012                           •	Even though the spark was missing            now started to move at a much             •	While there is nothing much to                 2016.                                               has a low QTS of 7 and its age of
                                            in the residential property market in        smoother pace post September.                cheer about, new launches, sales in                                                                inventory is 9.6. Affordable pricing
                                            Ahmedabad, there is a glimmer of hope.                                                    Ahmedabad painted a very different          •	Even though sales have been steady in               coupled with easy access to major
                                            From a high of 27,246 units launched in   •	This explains the 55% spike in new           picture. Sales remained largely steady.        H2 2017, the months of July and August              employment hubs and integrated
                                            H1 2011, new launches were at its nadir      launches in H2 2017 compared to H1           When compared to 2016, sales were              were hard for developers, especially in             development has helped this micro
                                            in H1 2017 as only 1,874 units were          2017. Compared to H2 2016 however,           marginally down in 2017, compared              case of under-construction projects.                market in attracting homebuyers.

89%
                                            launched. New launches had taken             new launches are down 44% and                to H2 2016, were 5% and higher. In             This was largely because of higher tax
                                            a hit in H1 2017 due to lack of clarity      compared to 2016, are down by 66%.           fact, the sales in H2 2017 is down 19%         rate under GST, something that the               •	In H2 2017, North Ahmedabad has the
                                            on the Real Estate (Regulation and                                                        compared to the average sales of 9,677         developers were trying to understand                highest level of inventory. This however,
                                            Development) Act, 2016 (RERA). From       •	Bulk of the launches in Ahmedabad            units recorded across H2 2013, H2              and their inability to communicate the              should not be much of a concern
                                            a low of 1,874 units in H1 2017 new          happened in South Ahmedabad in               2014 and H2 2015.                              same in a manner that the homebuyer                 because its QTS is only 7.7 and the age
                                            launches in H2 2017 moved to 2,916           locations like Kankaria and Juhapura.                                                       could understand. Explaining the                    of inventory is only 9.6.
Decline in launches in 2017, since the
                                            units, an increase of 55%.                   In fact, South Ahmedabad saw 35% of       •	The affinity of homebuyers towards             situation one of the developers aptly put
peak in 2011
                                                                                         the new launches in Ahmedabad city
 24

                                                                                                                                                                                                                                                                               25
KHORAJ                                                              AMBAPUR
                                                        DANTALI
                                                                                                                                                                                                                                                                                                        VALAD

                                                                                                               KHODIYAR
                                                                                         LILAPUR

                                                                                                                                                                      ZUNDAL                                                                                         KARAI

                    RESEARCH                 LAPKAMAN                                                                                                                                                                                                                                                                                                                                                         INDIA REAL ESTATE
                                                                                                                                          TRAGAD
                                                                                                                                                                                                                                                                                                            LIMBADIA
                                                                                                                                                                                                                  AMIYAPUR

                                                                                                                                                                                                                                                SUGHAD

                                                                                                                                                                                                                                                                                                                                                                              RESIDENTIAL
                                                                                                                                                                                                                                                                                                                                                MEDRA

                                                                                                                                                        CHANDKHEDA

                                                                                                                                                                                       NIGAM NAGAR                                               KOTARPUR                                                                                                        RAIPUR

                                                                                                                                                                                                                                                                                                                                                                       LAUNCHES AND SALES
                                    RAKANPUR
                                                                                                   OGNAJ
                                                                                                                                                                                                                                                                                              RANASAN

               SANTEJA

                                                                                                                                                                                                                                              BHAT
                                                                                                                                 GOTA
                                                                                                                                                   544                        1,501                                                                                                                                            ENASAN

                                                                                                                                                     -77%                      -70%                                                                                                         GIDC NARODA
                                                                                                                                                   H2 2017                     2017                                                                                                                                                                                          LAUNCHES (IN UNITS)         SALES (IN UNITS)        % CHANGE (YOY)
                                                                                                                                                   2,589                      5,134                                                                            NOBLE NAGAR
                                                                                                                                 CHANDLODIA          18%                        8%
                                                                                                                                                                           SABARMATI
                                                                                                                                                                                                                                HANSOL                                                                                         BILASIYA

                                                                                                                                                                NORTH                                                                                                                585                     1,330                                                                            VAHELAL

                                                                                                                                                            VIJAY NAGAR                                                                                                              -34%                        -55%
                                                                                                                      CHANAKYAPURI
                                                                                                                                                                                                                                                                                    H2 2017                      2017

                                                                                                                                                                                                                                                                                    1,899
                                                                                                                                                                                                                                                                                    NAVA NARODA              3,861
                                                                                                                                                                                                                                                                                                                                                                                                                  In fact, the sales
                                                                            SOLA VILLAGE                                                                                                                                                                                             -35%                        -20%
                                                                                                                                                                                                                                                                                                                                                                                                                  in H2 2017 is down
                                                                                                                                                                                                                                                                                                                                                                                                                  19% compared to
                                                                                                                                                                                                                                MEGHANI
                                                                                                                             NARANPURA
                                                                                                                                                                                                                                 NAGAR
                                                                                                                                                                                                                                                                                                  EAST
                                                                                                           MEMNAGAR                                                                                                                                    KRISHNANAGAR
                                                                                                                                                                                                                                                                                                                                                                                                                  the average sales
                                                                               THALTEJ                                                                                         DUBESHWAR
                                                                                                                                                                                                                                                                                                                                                                                                                  of 9,677 units
                                                                                   749                         831                                                                                                                                                                        NIKOL
                                                                                                                                                                                                                                                                                                                   KATHWADA
                                                                                                                                                                                                                                                                                                                                                                                                                  recorded across
                                                                                   -22%                        -75%                     NAVRANGPUR
                                                                                  H2 2017                      2017
                                                                                                                                                                                25                        70                                                                                                                                                                                                      H2 2013, H2 2014
                                                                                  1,876                     4,045                                                              -97%                       -96%

       BOPAL
                                                                 BODAKDEV           18%                        32%                                                            H2 2017                     2017
                                                                                                                                                                                                                                                     BAPUNAGAR
                                                                                                                                                                                                                                                                                                                                                                                                                  and H2 2015.
                                                                                                                                                                               553
                                                                                                                                                                          SHAHPUR                        1,129                                                                                                                                                                             KUBADTHAL
                                                                                                   WEST                                                                        -17%                       -16%
                                                                                                                                                                                                                                                                                                                           ODHAV                         BHUVALDI
                                                                                                                                                                                                                                                                                                                           INDUSTRIAL
                                                                                                                                                                                                                                                                       GIDC                                                ESTATE
                                             SPRING VALLEY                                                                                                                              CENTRAL                                                                        INDUSTRIAL
                                                                                                                                                                                                                                                                       AREA                    ODHAV
                                                                                                                                                                                        KHADIA
                                                                                                                 NIYOJAN NAGAR

                                                                                                                                                                                                  SHERKOTDA                                                                                                                                                    KANBHA
                                                    BAGODARA

HELA
                                                                                                                                                                                                                                                                                                                                                                          KUJAD
                                                                                                                             VASNA
                                                                                         VEJALPUR-2

                                                                                                                                                                                                                                                                                                                                                                                                              32%
                                                                                                                                                                                                                                          AMRAIWADI

                                                                                                                                                                                                                                                                      MAHADEV

                                                           MAKARABA                                 JUHAPURA                                                                                                                                                           NAGAR

                                                                                                                                                                  1,013                        1,058
                                                                                                                                                                    984%                         5%
                                                                                                                                                                   H2 2017                       2017                                                                 RAMOL
                                                                              SARKHEJ GAM
                                                                                                                                                                                                                                                                                                                                                                                                               Increase in sales in West Ahmedabad
                                                                                                                                                                    883                        1,572
                                                                                                                                                                                               ISANPUR                                                                                              MEMADPUR                                                                                                   in 2017
                                                                                                                                                                     3%                          -20%
                                                                                  CHALODA                                                                                                                                                                                                                                                                                                                    BHAVDA
                                                                                                                                                                                                                                                       GIDC                                                                                             BAKROL BURNI
                                                                                                                  SINGARVA
                                                                                                                                                                                                                                                       VATVA
                                                                                                                                                                               SOUTH                                                                                                  GERATNAGAR
                                                                                                                                                                                                                                                                                                                 MICRO-MARKET                                           LOCATIONS
        SANATHAL                                                                                                                                                                                                        VATVA

                                                                                                                                                   PIPLAJ                                                                                                                                                        CENTRAL                                                Paldi, Vasna, Navrangpura, Maninagar, Dudheshwar, Ambawadi

                                                                                                                                                                                    NAROLGAM
                                                                                                                                                                                                                                                                                                                 EAST                                                   Naroda, Vastral, Nikol, Kathwada Road, Odhav
                                                                                                                                                                                                                                                            VINZOL                                                                                                                                           UNDREL
                                                                                                                                                                                                                                                                                                                                          DHAMATVANA
                                                                                VANZAR
                                                                                                                                                                                                                                                                                                                 NORTH                                                  Gota, New Ranip, Tragad, Chandkheda, Motera

                                                                                                                                                                                                                                                                                                                 SOUTH
                                                                                                                                                                                                                                                                                                                  VANCH                                                 Narol, Vatva, Vinzol, Hathijan
                                                                                                                                                                     LAXMIPUR                                                                                                  HATHIJAN
                                                                                                                                                                                                                                                                                                                 WEST                                                   S. G. Highway, Prahlad Nagar, Bopal, Thaltej, Science City Road

                                                                                                                                                                                                                                                                                                                Source: Knight Frank Research
                                       VISALPUR                                                                                                                                                                                                                                                   BADODRA

                   All maps are for representational purpose not to scale
                                                                                                                                                                                                                                                                                                                                            HIRAPUR

                                                                                                                                                                                                ASLALI
                    26

                                                                                                                                                                                                                                                                                                                                                                                                                                                     27
                                                                                                                                                                                                                                     GAMDI
KHORAJ                                                             AMBAPUR
                                                        DANTALI
                                                                                                                                                                                                                                                                                                         VALAD

                                                                                                                KHODIYAR
                                                                                         LILAPUR

                                                                                                                                                                        ZUNDAL                                                                                        KARAI

                    RESEARCH                 LAPKAMAN                                                                                                                                                                                                                                                                                                                                                         INDIA REAL ESTATE
                                                                                                                                            TRAGAD
                                                                                                                                                                                                                                                                                                             LIMBADIA
                                                                                                                                                                                                                   AMIYAPUR

                                                                                                                                                                                                                                                 SUGHAD

                                                                                                                                                                                                                                                                                                                                                                                        RESIDENTIAL
                                                                                                                                                                                                                                                                                                                                                 MEDRA

                                                                                                                                                         CHANDKHEDA

                                                                                                                                                                                          NIGAM NAGAR                                             KOTARPUR                                                                                                        RAIPUR

                                                                                                                                                                                                                                                                                                                                                                                   UNSOLD INVENTORY
                                    RAKANPUR
                                                                                                   OGNAJ
                                                                                                                                                                                                                                                                                               RANASAN

               SANTEJA

                                                                                                                                                                                                                                               BHAT
                                                                                                                                   GOTA                                                                                                                                                                                          ENASAN

                                                                                                                                                       7796                        7.7                                                                                                      GIDC NARODA
                                                                                                                                                                                                                                                                                                                                                                                    UNSOLD INVENTORY (IN UNITS)                QUARTERS TO SELL
                                                                                                                                                       (-29%)
                                                                                                                                    CHANDLODIA
                                                                                                                                                                                   9.1                                                                          NOBLE NAGAR                                                                                                                     AGE OF UNSOLD INVENTORY (IN QUARTERS)
                                                                                                                                                                              SABARMATI
                                                                                                                                                                                                                                 HANSOL                                                                                          BILASIYA                                                                                      AS ON 31 DEC 2017
                                                                                                                                                                                                                                                                                                                                                                                             VAHELAL
                                                                                                                                                                  NORTH
                                                                                                                        CHANAKYAPURI
                                                                                                                                                              VIJAY NAGAR
                                                                                                                                                                                                                                                                                 6452                            7
                                                                                                                                                                                                                                                                                  (-29%)
                                                                            SOLA VILLAGE
                                                                                                                                                                                                                                                                                     NAVA NARODA
                                                                                                                                                                                                                                                                                                             9.6

                                                                                                                                                                                                                                 MEGHANI
                                                                                                                                NARANPURA
                                                                                                                                                                                                                                  NAGAR
                                                                                                                                                                                                                                                                                                   EAST
                                                                                                           MEMNAGAR                                                                                                                                     KRISHNANAGAR

                                                                               THALTEJ                                                                                           DUBESHWAR

                                                                                                                                                                                                                                                                                                                     KATHWADA
                                                                                                                                                                                                                                                                                           NIKOL

                                                                                 6721                          8.2                        NAVRANGPUR

                                                                                  (-32%)

                                                                 BODAKDEV
                                                                                                           12.3                                                                   1888                     7.2
       BOPAL                                                                                                                                                                                                                                          BAPUNAGAR
                                                                                                                                                                            SHAHPUR
                                                                                                                                                                                   (-29%)
                                                                                                                                                                                                           7.6                                                                                                                                                                            KUBADTHAL
                                                                                                   WEST                                                                                                                                                                                                                      ODHAV                        BHUVALDI
                                                                                                                                                                                                                                                                                                                             INDUSTRIAL
                                                                                                                                                                                                                                                                        GIDC                                                 ESTATE
                                             SPRING VALLEY                                                                                                                                  CENTRAL                                                                     INDUSTRIAL
                                                                                                                                                                                                                                                                        AREA                   ODHAV
                                                                                                                                                                                          KHADIA

                                                                                                                                                                                                                                                                                                                                                                                                       29%
                                                                                                                 NIYOJAN NAGAR

                                                                                                                                                                                                   SHERKOTDA                                                                                                                                                    KANBHA
                                                    BAGODARA

HELA
                                                                                                                                                                                                                                                                                                                                                                           KUJAD
                                                                                                                                VASNA
                                                                                         VEJALPUR-2                                                                                                                                        AMRAIWADI
                                                                                                                                                                                                                                                                                                                                                                                                       Movement in unsold inventory in
                                                                                                                                                                                                                                                                       MAHADEV                                                                                                                         H2 2017 alone
                                                           MAKARABA                                 JUHAPURA                                                                                                                                                            NAGAR

                                                                                                                                                                     4032                          8.8
                                                                                                                                                                                                                                                                       RAMOL
                                                                              SARKHEJ GAM                                                                             (-24%)                   ISANPUR
                                                                                                                                                                                                11.5                                                                                                 MEMADPUR

                                                                                  CHALODA                                                                                                                                                                                                                                                                                                                    BHAVDA
                                                                                                                                                                                                                                                        GIDC                                                                                             BAKROL BURNI
                                                                                                                     SINGARVA
                                                                                                                                                                                                                                                        VATVA
                                                                                                                                                                                 SOUTH                                                                                                 GERATNAGAR
        SANATHAL                                                                                                                                                                                                         VATVA

                                                                                                                                                                                                                                                                                                                                                                                                       7
                                                                                                                                                     PIPLAJ

                                                                                                                                                                                   NAROLGAM

                                                                                                                                                                                                                                                             VINZOL                                                                                                                                          UNDREL
                                                                                                                                                                                                                                                                                                                                            DHAMATVANA
                                                                                VANZAR
                                                                                                                                                                                                                                                                                                                                                                                                       Quarters to exhaust unsold inventory
                                                                                                                                                                                                                                                                                                                     VANCH

                                                                                                                                                                       LAXMIPUR                                                                                                 HATHIJAN

                                       VISALPUR                                                                                                                                                                                                                                                    BADODRA

                   All maps are for representational purpose not to scale
                                                                                                                                                                                                                                                                                                                                              HIRAPUR

                                                                                                                                                                                                ASLALI
                    28

                                                                                                                                                                                                                                                                                                                                                                                                                                              29
                                                                                                                                                                                                                                      GAMDI
KHORAJ                                                           AMBAPUR
                                                        DANTALI
                                                                                                                                                                                                                                                                                                    VALAD

                                                                                                               KHODIYAR
                                                                                         LILAPUR

                                                                                                                                                                     ZUNDAL                                                                                      KARAI

                    RESEARCH                 LAPKAMAN                                                                                                                                                                                                                                                                                                                                                  INDIA REAL ESTATE
                                                                                                                                                                                                                               MOTERA
                                                                                                                                         TRAGAD
                                                                                                                                                                                                                               3,400-3,589                                                              LIMBADIA
                                                                                                                                                                                                              AMIYAPUR
                                                                                                                                                                                                                               [4%] [3%]
                                                                                                                                                                                                                                            SUGHAD

                                                                                                                                                                                                                                                                                                                                                                                                RESIDENTIAL
                                                                                                                                                                                                                                                                                                                                          MEDRA

                                                                                                                                                      CHANDKHEDA

                                                                                                                                                                                     NIGAM NAGAR                                             KOTARPUR                                                                                                      RAIPUR

                                                                                                                                                                                                                                                                                                                                                                                                    PRICING
                                    RAKANPUR
                                                                                                   OGNAJ
                                                                                                                                                                                                                                                                                          RANASAN

               SANTEJA
                                                                                                                                                  CHANDKEDA
                                                                                                                                GOTA
                                                                                                                                                    2,650-2,769                                                                           BHAT
                                                                                                                                                                                                                                                                                                                          ENASAN
                                                                                                                                                  [1%] [2%]
                                                                                                                                                                                                                                                                                       GIDC NARODA                                                                          PRICE RANGE (IN ` SQ.FT.)             12 MONTH CHANGE (YOY)

                                                                                                                                                                                                                                                           NOBLE NAGAR
                                                                                                                                 CHANDLODIA                                                                                                                                                                                                                                                                        6 MONTH CHANGE (YOY)
                                                                                                                                                                         SABARMATI
                                                                                                                                                                                                                            HANSOL                                                                                        BILASIYA

                                                                                                                                                                                                                                                                                                                                                                                      VAHELAL
                                                                                                                                                               NORTH
                                                                                                                                                           VIJAY NAGAR
                                                                                                                      CHANAKYAPURI
                                                                                                                                                                                                                                                                                                  NIKOL
                                                                                                                                                                                                                                                                                NAVA NARODA       2,000-2,160
                                                                            SOLA VILLAGE
                                                                                                                                                                                                                                                                                                  [2%] [1%]
                                                                                                                                                                                                                            MEGHANI
                                                                                                                             NARANPURA
                                                                                                                                                             NAVRANGPURA                                                     NAGAR
                                                                                                                                                                                                                                                                                              EAST
                                                                                                                                                                                                                                                   KRISHNANAGAR
                                                                                                           MEMNAGAR                                          5,400-5,555
                                                                                                                                                             [3%] [3%]
                                                                               THALTEJ                                                                                      DUBESHWAR

                                                                                                                                                                                                                                                                                                              KATHWADA
                                                                                                                                                                                                                                                                                      NIKOL
                                                                                                                                       NAVRANGPUR
                                                                        BOPAL
                                                                        3,200-3,223
                                                                 BODAKDEV                                                                                   AMBAVADI                                                                                                                                           VASTRAL
                                                                        [3%] 0%]
       BOPAL                                                                                                                                                5,400-5,555                                                                          BAPUNAGAR
                                                                                                                                                                                                                                                                                                               2,000-2,132
                                                                                                                                                                    SHAHPUR
                                                                                                                                                            [4%] [4%]                                                                                                                                        [3%] [1%]                                                         KUBADTHAL
                                                                                                   WEST                                                                                                                                                                                                               ODHAV                        BHUVALDI
                                                                                                                                                                                                                                                                                                                      INDUSTRIAL
                                                                                                      PRAHLAD NAGAR                                                                                                                                                GIDC                                               ESTATE
                                             SPRING VALLEY                                            5,480-5,513                                                                     CENTRAL                                                                      INDUSTRIAL
                                                                                                                                                                                                                                                                   AREA                   ODHAV
                                                                                                                                                                                     KHADIA

                                                                                                                                                                                                                                                                                                                                                                                                4%
                                                                                                      [1%] [1%]
                                                                                                              NIYOJAN NAGAR

                                                                                                                                                                                              SHERKOTDA                                                                                                                                                  KANBHA
                                                    BAGODARA

HELA
                                                                                                                                                                                                                                                                                                                                                                    KUJAD
                                                                                                                             VASNA
                                                                                         VEJALPUR-2                                                                                                                                   AMRAIWADI
                                                                                                                                                                                                                                                                                                                                                                                                Price change in H2 2017 in
                                                                                                                                                                                                                                                                  MAHADEV                                                                                                                       Ambavadi
                                                           MAKARABA                                 JUHAPURA                                                                                                                                                       NAGAR

                                                                                                                                                                                                             ASLALI CIRCLE
                                                                                                                                                                                                             1,280-1,354
                                                                                                                                                                                                             [1%] [0%]                                          RAMOL
                                                                              SARKHEJ GAM
                                                                                                                                                                                          ISANPUR                                                                                               MEMADPUR

                                                                                  CHALODA                                                                                                                                                                                                                                                                                                             BHAVDA
                                                                                                                                                                                                                                                   GIDC                                                                                           BAKROL BURNI
                                                                                                                  SINGARVA
                                                                                                                                                                                                                                                   VATVA
                                                                                                                                                                            SOUTH                                                                                                 GERATNAGAR
        SANATHAL                                                                                                                                                                                                    VATVA

                                                                                                                                                                                                                                                                                                                                                                                                4%
                                                                                                                                                                                                                                       VATVA
                                                                                                                                                  PIPLAJ
                                                                                                                                                                                                                                       1,450-1,551
                                                                                                                                                                                                                                       [1%] [-1%]
                                                                                                                                                                               NAROLGAM

                                                                                                                                                                                                                                                        VINZOL                                                                                                                                        UNDREL
                                                                                                                                                                                                                                                                                                                                     DHAMATVANA
                                                                                VANZAR
                                                                                                                                                                                                                                                                                                                                                                                                Price movement in 2017 in Motera
                                                                                                                                                                                                                                                                                                              VANCH

                                                                                                                                                                    LAXMIPUR                                                                                               HATHIJAN

                                       VISALPUR                                                                                                                                                                                                                                               BADODRA

                   All maps are for representational purpose not to scale
                                                                                                                                                                                                                                                                                                                                       HIRAPUR

                                                                                                                                                                                           ASLALI
                    30

                                                                                                                                                                                                                                                                                                                                                                                                                                    31
                                                                                                                                                                                                                                 GAMDI
RESEARCH                                                                                                                                                                                                                             INDIA REAL ESTATE

                                        OFFICE MARKET                                                                              •	Unlike other real estate markets, like
                                                                                                                                      Bengaluru and Hyderabad, the office
                                                                                                                                                                                     of deals in H2 2017, compared to H2
                                                                                                                                                                                     2016, coupled with a massive increase
                                                                                                                                                                                                                                SECTOR-WISE SPLIT OF
                                                                                                                                      market in Ahmedabad is not driven by           in average deal size can be attributed
                                                                                                                                                                                                                                TRANSACTIONS
                                                                                                                                      the IT/ITeS sector. In fact, in H2 2016,       to companies taking up large spaces in
                                                                                                                                      the IT/ITeS sector did not pick up any         the city. The Bombay Stock Exchange
                                                                                                                                      space in the city. However, in H2 2017         and Oracle India picked up considerable
AHMEDABAD MARKET SNAPSHOT                                                                                                             the IT/ITeS sector picked up 14% of            office space in GIFT, in H2 2017.
                                                                                                                                      the transacted space in the city. Oracle
  PARAMETER                     H2 2017            Change YoY               2016             2017             Change YoY              India is the only major IT company that     •	Of the total transacted office space in
                                                                                                                                      picked up space in GIFT City in H2             the city, the share of CBD West and                         H2 2016
  New completions (mn sq ft)     0.69                  -36%                  1.67             2.92                75%                 2017.                                          PBD were almost equal. Among the
                                                                                                                                                                                     micro markets, GIFT in PBD accounted
  Transactions (mn sq ft)         .32                  61%                   .95              1.46                53%              •	The office market in Ahmedabad is              for all office space transacted in H2
                                                                                                                                      largely driven by BFSI, Other Services         2017, thereby becoming the most
  Weighted Average Rental          -                     -                   42                40                 5%                  and manufacturing. In H2 2017, the             important office market location
  (INR/sq ft/month)                                                                                                                   largest share of the pie went to BFSI          in Ahmedabad. Other important
                                                                                                                                      followed by Other Services, IT/ITeS            micro markets that witnessed major
  Stock (Mn sq ft)                 -                     -                  15.54            18.46                19%
                                                                                                                                      and manufacturing. When compared               transactions are SG Highway and CG
                                                                                                                                      to H2 2016, after IT/ITeS sector, the          Road in CBD West.
  Vacancy (%)                      -                     -                 19.6%             23.6%                  -
                                                                                                                                      share of BFSI in transacted office space                                                                    H2 2017
Source: Knight Frank Research                                                                                                         has grown in H2 2017. The share of          •	Even though the office market in
                                                                                                                                      Other Services has dipped marginally           Ahmedabad is in its infancy, among
                                 •	The Ahmedabad office market                        mn sq ft space in H2 2016. During H2           in H2 2017 compared to H2 2016. The            the early signs of this market steadily
                                    witnessed office space transaction of              2017, new office completions were              manufacturing sector is the biggest            growing is that rentals are firming up
                                    0.32 mn sq ft in H2 2017, which is 61%             done in only three projects, one each          loser, in terms of transacted office           both in CBD West and PBD, more so in
                                    higher than the space transacted in H2             on SG Highway, Science City Road and           space, in H2 2017 compared to H2               PBD. Compared to H2 2016, rentals in
                                    2016. Compared to 2016, office space               Satellite Road. All of this supply was in      2016. The sector had picked up 26% of          PBD have moved up by 9% in H2 2017,
                                                                                                                                                                                                                                                            H2             H2
                                                                                                                                      the transacted office space in H2 2016         and in comparison to H1 2017 have                Industry
                                    transaction grew by 53%.                           Grade-B office buildings.                                                                                                                                            2016           2017
                                                                                                                                      and in H2 2017 its share fell to only 8%.      increased by 4%, in H2 2017. Rental
                                 •	This massive jump in transacted space           •	Compared to 2017 however, new                  In fact, the share of the manufacturing        movement, however, has been more                BFSI                  35%            42%
                                    can be attributed to availability of good          completions moved up by 53%. During            sector was at its highest in H1                muted in CBD West. In H2 2017, rentals
                                    quality office space at competitive                2017, 86% of the supply came in                2015, when it picked up 40% of the             have remained stable compared to H1             IT/ITeS               -              14%
Among the prominent                 rates. Among the prominent landmarks               CBD West in the micro markets along            transacted office space in the city. The       2017 and moved up by 1% compared
landmarks in the                    in the Ahmedabad office market is the              SG Highway, Anandnagar Road, CG                falling share of the manufacturing sector      to H2 2016.                                     Manufacturing         26%            8%
                                    Gujarat International Finance Tec-City             Road, Bopal Ambli Road, Keshav                 could be attributed to the increased
Ahmedabad office                    or GIFT, which has witnessed office                Baug, Science City Road and Satellite          attention Ahmedabad is receiving from                                                          Other Services        39%            36%

market is the Gujarat               space pick up by companies from BFSI,              Road. The balance 14% space entered            companies in the services sector.                                                        Note: BFSI includes BFSI support services
                                    IT/ITeS and Other Services sectors in              the Ahmedabad office market in PBD
International Finance               H2 2017. Offering state-of-the-art world           (GIFT).                                     •	The average deal size in H2 2017 is
                                                                                                                                                                                                                               AVERAGE DEAL SIZE AND
Tec-City or GIFT,                   class technology, GIFT will change                                                                reported to be 19,062 sq ft, which
                                                                                                                                                                                                                               NUMBER OF DEALS
                                    the dynamics of the office market in            •	The office market in Ahmedabad is              is 42% higher than in H2 2016. The
which has witnessed                 Ahmedabad.                                         still in its infancy, compared to urban        average deal size in H2 2017 is
office space pick                                                                      centres like Mumbai, Bengaluru and             however, 11% lower than in H1 2017.
                                 •	Signs of the growing Ahmedabad office              Delhi NCR. The necessary infrastructure        The deal size is also 64% lower than                                                                      13,380
up by companies                     space market can also be gauged from               is in place, and of late, developers have      what the city witnessed in H1 2016.                                                                Average deal size (sq ft)

from BFSI, IT/ITeS                  the fact that for the first time transacted        moved in to meet the requirements              During H1 2016, Ahmedabad reported                                                                          H2 2016
                                    office space in the city crossed 1 mn sq           of companies either moving into the            its largest deal size of 53,607 sq ft.
and Other Services                  ft. In 2016, 0.95 mn sq ft of space was            city or expanding their presence in the                                                                                                                       15
sectors in                          transacted and in 2015, the figure stood           city. In the present day, this has led to   •	H2 2017 witnessed the completion of                                                                    Number of deals
                                    at 0.8 mn sq ft.                                   a situation where the supply outstrips         17 deals, which is marginally higher

H2 2017.                                                                               demand. This explains the double digit         than what Ahmedabad witnessed in H2
                                                                                                                                                                                                                                                19,062
                                 •	New completions on the other hand                  vacancy rates in the city, which has           2016. The increase in number of deals
                                                                                                                                                                                                                                         Average deal size (sq ft)
                                    witnessed a dip of 36% in H2 2017                  increased slightly since H1 2016. In           from 15, in 2016, to 17, in H2 2017,
                                    compared to H2 2016. During H2 2017,               H2 2017, the vacancy rate in the city is       should be viewed in the light of a 42%                                                                      H2 2017
                                                                                                                                      increase in average deal size in H2
                                    only 0.32 mn sq ft of office space
                                    entered the market compared to 1.08
                                                                                       23.6%, up from 19.6% in H2 2016.
                                                                                                                                      2017 compared to the same period last                                                                          17
                                                                                                                                                                                                                                             Number of deals
                                                                                                                                      year. The small increase in the number
 32

                                                                                                                                                                                                                                                                                  33
KHORAJ                                                              AMBAPUR
                                                        DANTALI
                                                                                                                                                                                                                                                                                                      VALAD

                                                                                                              KHODIYAR
                                                                                         LILAPUR
                                                                                                                                                                                                                                                                   KARAI
                                                                                                                                                                                                       0.16
                                                                                                                                                                    ZUNDAL

                    RESEARCH                 LAPKAMAN
                                                                                                                                                                                                       229%                                                                                                                                                                                                  INDIA REAL ESTATE
                                                                                                                                        TRAGAD

                                                                                                                                                                                                       0.38     AMIYAPUR
                                                                                                                                                                                                                                                                                                          LIMBADIA

                                                                                                                                                                                                       -35%
                                                                                                                                                                                                                                              SUGHAD

                                                                                                                                                                                                                                                                                                                                                                                                   OFFICE
                                                                                                                                                                                                                                                                                                                                              MEDRA

                                                                                                                                                     CHANDKHEDA

                                                                                                                                                                                     NIGAM NAGAR       PBD                                     KOTARPUR                                                                                                        RAIPUR

                                                                                                                                                                                                                                                                                                                                                                                             TRANSACTIONS
                                    RAKANPUR
                                                                                                   OGNAJ
                                                                                                                                                                                                                                                                                            RANASAN

               SANTEJA

                                                                                                                                                                                                                                            BHAT
                                                                                                                               GOTA                                                                                                                                                                                           ENASAN

                                                                                                                                                                                                                                                                                         GIDC NARODA
                                                                                                                                                                                                                                                                                                                                                                                                       H2 2017       2017        % CHANGE (YOY)
                                                                                                                                                                                                                                                             NOBLE NAGAR
                                                                                                                                CHANDLODIA                               SABARMATI                                                                                                                                                                                                                                                  IN MN SQ FT
                                                                                                                                                                                                                              HANSOL                                                                                          BILASIYA

                                                                                                                                                                                                                                                                                                                                                                                              VAHELAL

                                                                                                                                                          VIJAY NAGAR
                                                                                                                      CHANAKYAPURI

                                                                                                                                                                                                                                                                                  NAVA NARODA
                                                                            SOLA VILLAGE

                                                                                                                                                                                                                              MEGHANI
                                                                                                                            NARANPURA
                                                                                                                                                                                                                               NAGAR
                                                                                                           MEMNAGAR                                                                                                                                  KRISHNANAGAR

                                                                               THALTEJ
                                                                                                                                                                              0.16
                                                                                                                                                                             DUBESHWAR

                                                                                                                                                                                   7%                                                                                                   NIKOL
                                                                                                                                                                                                                                                                                                                KATHWADA

                                                                                                                                      NAVRANGPUR
                                                                                                                                                                              1.08
                                                                                                                                                                                  194%
                                                                 BODAKDEV
       BOPAL                                                                                                                                                                                                                                       BAPUNAGAR
                                                                                                                                                                        SHAHPUR
                                                                                                                                                                                                                                                                                                                                                                                           KUBADTHAL
                                                                                                                                                                           CBD WEST                                                                                                                                       ODHAV                        BHUVALDI
                                                                                                                                                                                                                                                                                                                          INDUSTRIAL
                                                                                                                                                                                                                                                                     GIDC                                                 ESTATE
                                             SPRING VALLEY                                                                                                                                                                                                           INDUSTRIAL
                                                                                                                                                                                                                                                                     AREA                   ODHAV
                                                                                                                                                                                      KHADIA
                                                                                                               NIYOJAN NAGAR

                                                                                                                                                                                                                                                                                                                                                                                         23.6%
                                                                                                                                                                                                SHERKOTDA                                                                                                                                                    KANBHA
                                                    BAGODARA

HELA
                                                                                                                                                                                                                                                                                                                                                                        KUJAD
                                                                                                                            VASNA
                                                                                         VEJALPUR-2                                                                                                                                     AMRAIWADI

                                                                                                                                                                                                                                                                    MAHADEV

                                                           MAKARABA                                JUHAPURA                                                                                                                                                          NAGAR                                                                                                               Vacancy rate in Ahmedabad office market in H2 2017

                                                                                                                                                                                                                                                                    RAMOL
                                                                              SARKHEJ GAM
                                                                                                                                                                                             ISANPUR                                                                                              MEMADPUR

                                                                                  CHALODA                                                                                                                                                                                                                                                                                                                   BHAVDA
                                                                                                                                                                                                                                                     GIDC                                                                                             BAKROL BURNI
                                                                                                                 SINGARVA
                                                                                                                                                                                                                                                     VATVA
                                                                                                                                                                                                                                                                                    GERATNAGAR
        SANATHAL                                                                                                                                                                                                      VATVA

                                                                                                                                                 PIPLAJ

                                                                                                                                                                                                                                                                                                                       BUSINESS DISTRICT                                    MICRO MARKETS
                                                                                                                                                                                  NAROLGAM

                                                                                                                                                                                                                                                          VINZOL                                                                                                            Bodakdev, Keshav Baug, Prahladnagar, Satellite, SG Highway,
                                                                                                                                                                                                                                                                                                                       CBD West                                                                         UNDREL
                                                                                                                                                                                                                                                                                                                                         DHAMATVANA                         Thaltej
                                                                                VANZAR

                                                                                                                                                                                                                                                                                                                       PBD                                                  Gandhinagar, Gift City
                                                                                                                                                                                                                                                                                                                VANCH

                                                                                                                                                                   LAXMIPUR                                                                                                  HATHIJAN
                                                                                                                                                                                                                                                                                                                     Source: Knight Frank Research

                                       VISALPUR                                                                                                                                                                                                                                                 BADODRA

                   All maps are for representational purpose not to scale
                                                                                                                                                                                                                                                                                                                                           HIRAPUR

                                                                                                                                                                                              ASLALI
                    34

                                                                                                                                                                                                                                                                                                                                                                                                                                                  35
                                                                                                                                                                                                                                   GAMDI
KHORAJ                                                              AMBAPUR
                                                        DANTALI
                                                                                                                                                                                                                                                                                                      VALAD

                                                                                                              KHODIYAR
                                                                                         LILAPUR

                                                                                                                                                                    ZUNDAL                                                                                         KARAI

                    RESEARCH                 LAPKAMAN                                                                                                                                                                                                                                                                                                                                                        INDIA REAL ESTATE
                                                                                                                                        TRAGAD
                                                                                                                                                                                                                      9%                                                                                  LIMBADIA

                                                                                                                                                                                         40-41
                                                                                                                                                                                                                AMIYAPUR

                                                                                                                                                                                                                      4%                      SUGHAD

                                                                                                                                                                                                                                                                                                                                                                                            OFFICE RENTAL
                                                                                                                                                                                                                                                                                                                                            MEDRA

                                                                                                                                                     CHANDKHEDA

                                                                                                                                                                                     NIGAM NAGAR        PBD                                    KOTARPUR                                                                                                      RAIPUR
                                    RAKANPUR
                                                                                                   OGNAJ
                                                                                                                                                                                                                                                                                            RANASAN
                                                                                                                                                                                                                                                                                                                                                                                       RENTAL VALUE RANGE IN H2 2017 (INR/SQ FT/MONTH)
               SANTEJA

                                                                                                                                                                                                                                            BHAT
                                                                                                                               GOTA                                                                                                                                                                                         ENASAN                                                            12 MONTH CHANGE                  6 MONTH CHANGE
                                                                                                                                                                                                                                                                                         GIDC NARODA

                                                                                                                                                                                                                                                             NOBLE NAGAR
                                                                                                                                CHANDLODIA                               SABARMATI
                                                                                                                                                                                                                              HANSOL                                                                                        BILASIYA

                                                                                                                                                                                                                                                                                                                                                                                            VAHELAL

                                                                                                                                                          VIJAY NAGAR
                                                                                                                      CHANAKYAPURI

                                                                                                                                                                                                                                                                                  NAVA NARODA
                                                                            SOLA VILLAGE

                                                                                                                                                                                                                              MEGHANI
                                                                                                                                                                                                                                                                                                                                                                                                      Of the total transacted
                                                                                                                                                                                                                                                                                                                                                                                                      office space in the city,
                                                                                                                            NARANPURA
                                                                                                                                                                                                                               NAGAR
                                                                                                           MEMNAGAR                                                                                                                                  KRISHNANAGAR

                                                                               THALTEJ                                                                                       DUBESHWAR
                                                                                                                                                                                                                                                                                                                                                                                                      the share of CBD West
                                                                                                                                                                                                                                                                                        NIKOL
                                                                                                                                                                                                                                                                                                                KATHWADA
                                                                                                                                                                                                                                                                                                                                                                                                      and PBD were almost
                                                                                                                                      NAVRANGPUR
                                                                                                                                                                                                   1%                                                                                                                                                                                                 equal. Among the micro
                                                                                                                                                                   40-43
                                                                                                                                                                                                   0%                                                                                                                                                                                                 markets, GIFT in PBD
                                                                 BODAKDEV
       BOPAL
                                                                                                                                                                        SHAHPUR
                                                                                                                                                                                                                                                   BAPUNAGAR
                                                                                                                                                                                                                                                                                                                                                                                                      accounted for all office
                                                                                                                                                                                                                                                                                                                                                                                         KUBADTHAL
                                                                                                                                                                           CBD WEST                                                                                                                                     ODHAV
                                                                                                                                                                                                                                                                                                                        INDUSTRIAL
                                                                                                                                                                                                                                                                                                                                                     BHUVALDI                                         space transacted in H2
                                                                                                                                                                                                                                                                                                                                                                                                      2017, thereby becoming
                                                                                                                                                                                                                                                                     GIDC                                               ESTATE
                                             SPRING VALLEY                                                                                                                                                                                                           INDUSTRIAL
                                                                                                                                                                                                                                                                     AREA                   ODHAV
                                                                                                                                                                                      KHADIA
                                                                                                               NIYOJAN NAGAR
                                                                                                                                                                                                                                                                                                                                                                                                      the most important
                                                    BAGODARA
                                                                                                                                                                                                SHERKOTDA                                                                                                                                                  KANBHA                                     office market location in
HELA
                                                                                                                                                                                                                                                                                                                                                                      KUJAD
                                                                                                                                                                                                                                                                                                                                                                                                      Ahmedabad.
                                                                                                                            VASNA
                                                                                         VEJALPUR-2                                                                                                                                     AMRAIWADI

                                                                                                                                                                                                                                                                    MAHADEV

                                                           MAKARABA                                JUHAPURA                                                                                                                                                          NAGAR

                                                                                                                                                                                                                                                                    RAMOL
                                                                              SARKHEJ GAM
                                                                                                                                                                                             ISANPUR                                                                                              MEMADPUR

                                                                                  CHALODA                                                                                                                                                                                                                                                                                                                  BHAVDA
                                                                                                                                                                                                                                                     GIDC                                                                                           BAKROL BURNI
                                                                                                                 SINGARVA
                                                                                                                                                                                                                                                     VATVA
                                                                                                                                                                                                                                                                                    GERATNAGAR
        SANATHAL                                                                                                                                                                                                      VATVA

                                                                                                                                                                                                                                                                                                                                                    4%                                                9%
                                                                                                                                                 PIPLAJ

                                                                                                                                                                                  NAROLGAM

                                                                                                                                                                                                                                                          VINZOL                                                                                                                                           UNDREL
                                                                                                                                                                                                                                                                                                                                       DHAMATVANA
                                                                                VANZAR

                                                                                                                                                                                                                                                                                                                                                    Increase in rentals in PBD in H2                  Increase in rentals in PBD in 2017
                                                                                                                                                                                                                                                                                                                VANCH
                                                                                                                                                                                                                                                                                                                                                    2017 alone
                                                                                                                                                                   LAXMIPUR                                                                                                  HATHIJAN

                                       VISALPUR                                                                                                                                                                                                                                                 BADODRA

                   All maps are for representational purpose not to scale
                                                                                                                                                                                                                                                                                                                                         HIRAPUR

                                                                                                                                                                                              ASLALI
                    36

                                                                                                                                                                                                                                                                                                                                                                                                                                            37
                                                                                                                                                                                                                                   GAMDI
RESEARCH                                                                                                                                             INDIA REAL ESTATE

                                              Bengaluru experienced unprecedented economic and spatial growth as a result of rapid in-migration and growth
                                              of the IT/ITeS sector. With 42% population growth in 2001–2011 decade, the population in the city accounts for
                                              nearly 14.60% of total state population concentrated in merely 0.64% of land area. Against this backdrop, the
                                              Bangalore Development Authority (BDA) recently notified the Revised Master Plan (RMP) 2031 (Provisional) for
                                              public suggestions on 26 November 2017. With ecological sustainability, inclusive growth and mobility as the
                                              guiding principles, it is envisaged as a spatial policy framework to tackle the key challenges of

                                              a) rapid population explosion b) development led infrastructure rather than infrastructure led development c)
                                              protecting the lake and valley system d) inadequate affordable housing stock
                                              e) integration of traffic & transportation and infrastructure f) uneven spatial distribution of economic activities,
                                              infrastructure, social amenities and open spaces.

                                              FOLLOWING ARE THE KEY HIGHLIGHTS                supported with a targeted shift of public              88.49 sq km or 10.01% of total
                                              OF DRAFT RMP 2031 AND THEIR                     transport share from existing 48% to                   developable area to comply with
                                              IMPLICATIONS:                                   68–70%.                                                an NGT judgment dated 4 May
                                                                                                                                                     2016, which had rendered the
                                              A) EXTENSION OF CONSURABATION                   B)	CHANGES IN PROPOSED LAND USE
                                                                                                                                                     buffer zones assigned by RMP
                                              LIMITS OF RMP 2031                                   AS PER RMP 2031
                                                                                                                                                     2015 as unscientific. This 88.49 sq
                                              over RMP 2015 is to the extent of 80 sq km
                                                                                                 i)	More land for residential usage – It            km includes 46 sq km apportioned
                                              (from 804 sq km to 884 sq km with a gross
                                                                                                     has been proposed to increase                   as vacant land in RMP 2015.
                                              density of 210 persons per hectare) mainly
                                                                                                     the residential land use category               RMP 2031 has taken into account
                                              due to availability of large vacant tracts of
                                                                                                     from 17.63% of total area of LPA                the objections raised by NGT in
                                              land within the existing conurbation limits.
                                                                                                     of BDA to 424.77 sq km or 48.03%                general and classifies the streams
                                              This is in line with the strategy to promote
                                                                                                     of total area of LPA of BDA. This is            (rajkaluves) with respect to primary,
                                              compact high density developments
                                                                                                     a significant departure from RMP                secondary and tertiary, which
                                                                                                     2015 and recognises the planning                will be treated as no construction
                                                CONURBATION OF RMP 2031                              authority’s commitment towards                  zones for all intent and purposes.
                                                                                                     creation of more residential zones,             If implemented systematically, this
                                                  Description                  Extent                most of which are demarcated in                 clear distinction of NGT Buffer will
                                                  Area of Conurbation          884.31 sq km          the outskirts where new special                 render approximately 21,866 acres
                                                                                                     development zones (SDZ) are being               as no construction zones limiting
                                                  Area of Agriculture          322.66 sq km
                                                                                                     envisaged.                                      land availability for new construction
                                                  Area of Local                1206.97 sq
                                                                                                                                                     activities. In the long term, land
                                                  Planning Area (LPA)          km                ii)	Provision for an NGT buffer is
                                                                                                                                                     prices for parcels adjacent to NGT
                                                  of BDA                                              a new introduction in % to total
                                                                                                                                                     buffers might a witness steep
                                                                                                      developable land area – A new
                                                                                                                                                     upsurge due to this change.
                                              Source: Knight Frank Research,                          category NGT Buffer stipulates
                                              Provisional Revised Master Plan 2031

                 Provisional Revised          C) IDENTIFICATION OF 5 SPECIAL DEVELOPMENT ZONES (SDZ) AS BELOW:

     MASTER PLAN 2031
                                                           PROPOSED SDZ                                EMERGING ECONOMIC ACTIVITIES TO FUEL GROWTH

                                                  1        Bellary Road                                Hubs of IT

                                                  2        Sarjapur Road                               Other related Hi-Tech industries

           envisions decongesting Bengaluru       3        Hosur Road                                  Supporting service sector offices

                                                  4        Mysuru Road                                 Hub for knowledge driven economy
                         -By Divya Grover
                                                  5        Old Madras Road                             Creation of new opportunities through light and service industries
38

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