Anda di halaman 1dari 16

1. Bangalore: Residential Market Report April 2012 A REPORT BY STRATEGIC ADVISORY GROUPW O R K P L A C E S E R V I C E S 2.

BANGALORE RESIDENTIAL MARKET STATISTICS: 2012 AND BEYOND 14 Million 13% Bangalore metropolitan population average annual price appreciation by 2021.1 rate in residential sector for last 4 years. 20,600 4.5% residential units absorbed in 2011. average annual residential yield rate. 100,000+ 44,000 average annual addition in IT/ITeS residential units launched in 2011 workforce for past 2 years; [38,700 and 5,300 in apartment expected to grow at least at this and villa/row houses category rate for next 3 years. respectively]. 55,400 15% residential units available. CAGR for residential sector during 2008-11. 1 Source: Census of India population in Bangalore of 9.6 million is projected assuming CAGR of 4.3% to arrive at a population of 14 million for 2021.1 3. EXECUTIVE SUMMARY For the past two decades, Bangalore has been the fastest Bangalore cannot afford to witness same number of projectgrowing city of India. Bangalore is termed as World City being launches this year as 2011. If the activity level does not drop toestablished Silicon Valley of Asia; in addition it has multi-cultural half of 2011 then, Bangalore residential market is likely to facepopulation, good education & social infrastructure, and an oversupply situation.improving physical infrastructure. Last year, Bangalore witnessed entry of new residential Bangalores residential market interests all stakeholders products namely Villament and Branded Homes. Villamentdevelopers, landowners and investors on account of large, projects have been launched in Off Central and suburbaneducated, young, double income household and growing locations by developers like Habitat Ventures, LGCL andmigrant population. Many prominent national and international Salarpuria. An international company Westcourt has launcheddevelopers have entered Bangalore residential market and more a Branded Home project near Mekhri Circle, Bellary Road.are expected to join in the coming years. Bangalores residential segment is likely to grow annually at Currently, the most promising residential micro-markets in 15% for next 3 years. In 2012, Bangalore is pegged to absorbBangalore are Outer Ring Road (ORR), Whitefield and Bangalore 23,000 residential units. The capital value would appreciateNorth. between 12% to 20% across different micro-markets on account of rising construction cost and land price. Old Madras Road and Mysore Road micromarkets haveuntapped potential for residential development. Old Madras South East (SE) quadrant micro-markets Whitefield, ORR andRoad is gaining traction faster due to its proximity to IT hubs Sarjapur Road will remain active in short to medium term owingWhitefield & ORR, Bangalore International Airport and City to proximity to established IT economic hubs. However, nextCenter. growth direction would be North East (NE) quadrant Old Madras Road & Bangalore North (Hennur Road, Thanisandra In Apartment market, except budget category (less than INR Road and Bellary Road). Although, Bangalore North may face25L), residential products across other segments are under over supply situation in short term owing to over enthusiasm ofdownward pressure owing to high activity levels. Even in the mid developers towards this micromarket, the long term potentialcategory (INR 25L 50L), developers have launched oversized of this micro-market is very high.apartment projects. Economic outlook for the city remains strong in coming years Bangalore is one of the most promising markets for Villa as many large IT/ITeS, Engineering and Automobile MNCs haveprojects in India. However, as per current statistics, the market aggressive growth plans for the city. This would ensure healthyhas very high expectation from this product. Many under growth rate in residential projects may take a longer timelines forcompletion. As per absorption analysis, Bangalores buyers are moresensitive compared to other southern Indian cities towardsquality of the project, amenities and unit sizes.BANGALORE: RESIDENTIAL MARKET REPORT 2 4. Bangalore boasts of the highest growth rate among all Indian cities, with double digit annual growth rate of IT/ITeS sector. Currently population of the Bangalore Urban District is 9.6 million and is expected to grow to 14 million by 2021. Bangalore owes its multi-fold economic growth since 1990s to IT/ITeS industry. The wealth created by the new industry has had a multiplier effect leading to a real estate boom, a flourishing retail and leisure industry. The knowledge economy of Bangalore has transformed it from a small town, peaceful, pensioners paradise to a global technology hub. Post 1991, economic liberalization led to the growth of knowledge economy thereby leading to migration of educated middle class to the city; exposure of the young

urban population to global standard of living; availability of housing finance and private participation in real estate sector set the tone of social infrastructure residential, retail, education and others in the city. Bangalore is expected to continue to follow upward prosperity trajectory in coming decades as well. As per Mckinsey 2, by 2030 among all Indian cities Bangalore would have highest per capita GDP. Bangalore Key Facts Key Facts 3 Area ( 1,306 Population as of 2011 9.6 million 4 5 Decadal Population Growth Rate 47% 2 Source: McKinsey Global Institute Indias Urban Awakening: Building Inclusive Cities, Sustaining Economic Growth, published in April 2010. 3 Bruhat Bangalore Mahanagara Palike (BBMP) was formed in 2007 and it includes 100 wards of the erstwhile Bangalore Mahanagara Palike, with seven neighboring City Municipal Councils, one Town Municipal Council and 110 villages around the city. 4 Census of India 2011, Provisional Population for States 2011. 5 With urban population of 9.6 million in the year 2011, Bangalore is the third most populous city and fifth largest urban agglomerations in India. Population in the city grew at an annual growth rate of 4.7% during 2001 2011; population for the year 2021 assuming the same growth rate could be pegged at 14 million.3 5. Bangalores emergence as a world city is closely tied with growth of IT sector. Currently, City has over 800,000 IT/ITeS workforce and adding over 100,000 workforces every year. As of now, 2,840 IT/ITeS companies including more than 100 Fortune 500 companies have established their operations in Bangalore. Key reasons of Bangalores emergence as an IT hub of India are: Access to Talent Pool on account of : a) Availability of education institutions, during early 20th Century British Government developed excellent education infrastructure in Bangalore City. This resulted high penetration of English language in local population. b) Today Bangalore has over 5400 schools and 620 colleges. Colleges offering general degree are about 350, engineering colleges account for 80, medical seven, Law - 72 and Management-120. c) Karnataka was the first Indian State to recognize the importance of technical and engineering education and therefore encouraged the setting-up of privately-owned engineering colleges. d) Bangalore has nationally renowned professional institutes such as IISc, ISI, IIMB, NLSUI, NID, IIITB and many more. e) Presence of PSU and Research institutions. Until 1990s growth of Bangalore was largely driven by public sector companies and research organizations. Post-independence, the city evolved as an engineering hub with establishments of large Public Sector Undertakings (PSUs) namely HAL, ITI, ISRO, HMT, BEML, BEL and more. Multi-Cultural Environment: Bangalore is home to diverse groups of people. Bangalore attracts a large number of immigrants from across the state and country. As per Bangalore City Development Plan for JNNURM (2006), immigrants from other parts of Karnataka constitute 53%, Tamil Nadu 19%, Andhra Pradesh 9%, Kerala 7% and Others 19% of the population. In addition, the city also attracts a large number of expats from other nations. Good Social Infrastructure: Bangalore has well developed business and social infrastructure including renowned health institutes, modern format retail malls, entertainment options and star category hotels. Moderate Climate: Due to its high elevation, Bangalore enjoys a more moderate climate throughout the year. Bangalore experiences a tropical wet and dry climate with summer temperatures ranging between 34C35C and winter temperatures between 15 C 18 C.BANGALORE: RESIDENTIAL MARKET REPORT 4 6. GROWTH OF BANGALORE METROPOLITAN CITY TIME LINE 1537 1807 Bangalore founded by British established Kempe Gowda Bangalore Cantonment LEGISLATION STRUCTURE Bangalore also called Bengaluru, is the capital of the Indian state of Karnataka. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is Indias third most populous city and fifth- most populous urban agglomeration. Bangalore is well known as a hub for Indias information technology sector. It is among the top 10 preferred entrepreneurial locations in the world. A succession of South Indian dynasties ruled the region of Bangalore until in 1537 AD Kempe Gowdaa feudatory ruler under the Vijayanagara DEVELOPMENT OF THE CITY Empireestablished a mud fort considered to be the foundation of modern Bangalore. Following transitory occupation by Maratha and Mughal, the city remained under the Mysore kingdom. Bangalore continued to be a cantonment of the British and a major city of the Princely State of Mysore which existed as a nominally sovereign entity of the British Raj. Following the independence of India in 1947, Bangalore became the capital of Mysore state, and later Karnataka. Today as a large city and growing metropolis, Bangalore is home to numerous public sector heavy industries, software companies, aerospace, telecommunications, and defence organisations. Bangalore is known as the Silicon Valley of India because of its position as the

nations leading IT exporter. A demographically diverse city, Bangalore is a major economic and cultural hub and the second fastest growing major metropolis in India.5 7. 1889-1945 1945-1976 1976-1991 1991-2007 2011 - PRESENT Bangalore had two City Improvement In 1976, CITB and In 1991, Economic BDA released CDP 2015 regions: Pette (a native Trust Board (CITB) was ? other planning bodies liberalization in India for Bangalore in July settlement) and constituted in 1945 and ? were transformed in to 2007 Cantonment (army in1949 Bangalore City ? Bangalore Development In 1994, 74th settlement) with their Municipality and Civil & ? Authority (BDA) Constitutional respective Military Station Amendment came into administrative bodies Municipality merged Publication of first existence namely Bangalore City under Bangalore City Comprehensive Municipality and Civil Corporation (BCC) Development Plan (CDP) Revised Bangalore & Military Station for Bangalore in 1985 CDP in 1995 Municipality Constitution of Metropolitan Planning Government established In 2005, FDI Constitution of Town Board in 1961 Bangalore Metropolitan permission in real Planning Committee in Region Development estate sector 1889 Town and Planning Act Authority (BMRDA) in in 1964 1985 City Improvement Trust Board (CITB) was Constitution of City constituted in 1945 Planning Authority to prepare Outline Development Plan (ODP) The first ODP, master plan for the city was prepared & approved in 1972 Bangalore developed Integration of Pette BDA led allotment of 74th Constitutional In 2008, Bangalore as two different and Cantonment regions residential sites to Amendment International Airport settlements: individuals. Key BDA transformed the role of commenced its services While BCC layouts include BTM and BDA from provider to thereby strengthening - Pette was an organic concentrated its efforts HSR layout towards enabler. This real estate activities development, with on maintaining the city south-east, HRBR and amendment also narrow streets and clean and beautiful, the OMBR Layout towards encouraged Responsive zoning mixed land use. CITB paid attention to north-east of the city participation of private regulations by Between 1898 and develop new extensions and RMV and developers in real estate promoting mixed land 1920, Bangalore City to meet the housing Sadashivnagar towards developments uses along the Municipality developed new extensions - demand. Between 1945 north-west commercial axes and Chamrajpet, and 1976, CITB acquired Rise of IT/ITeS sector mutation corridors Malleshwaram and 1,411 hectares of land BMRDA provided created new economic which have led to the Basavanagudi and distributed 68,300 framework for the magnets Electronics development of self- sites. It developed new organized growth of City, Whitefield and ORR sustaining - The cantonment locations including towns surrounding led growth of large scale neighbourhoods witnessed the adoption Jayanagar, Indiranagar, Bangalore City residential development of the British model Rajajinagar and across different regions Integrating urban broader streets with Koramangala of Bangalore especially infrastructure and avenue tress, sidewalks along South and Eastern transportation networks for pedestrians and The Metropolitan suburban and peripheral by developing a multi- zoning regulations that Planning Board and regions modal public transport segregated residences Town & Country system in order to and workplaces. Towns Planning Act gave FDI in real estate control sprawl like Richmond Town, institutional framework paved way for entry of Cleveland Town, Frazer Town, Cox Town, for city development international developers Langford Town were and investors developed in this part of The ODP provided the the development vision for planned growth of the cityBANGALORE: RESIDENTIAL MARKET REPORT 6 8. INFRASTRUCTURE PROJECTS - METRO RAIL7 9. Bangalore has 31 industrial hubs across the city. It Under construction and planned infrastructure houses different PSUs and private companies projects will ensure that Bangalore continues to across IT/ITeS, Bio-technology, Engineering, grow at current levels and establishes itself as Aviation, Textile and others sectors. one of the finest world cities.Key IT/ITeS Hubs Over the last 5 years, Bangalore has witnessed substantial Whitefield Electronics City, improvements on the infrastructure front. A few initiatives Hosur Road Outer Ring Road include commissioning of Bangalore International Airport in Bannerghatta Road 2008, Electronics City Elevated Expressway in 2009, Phase 1 of Old Airport Road. NICE corridor in 2009, Tumkur road elevated expressway in 2010 and Reach 1 of Bangalore Metro Rail in 2011.Key Industrial Hubs Bidadi Industrial Area Mysore Road The table below lists on-going and proposed infrastructure Peenya

Industrial Area projects (physical) in Bangalore. Completion of these projects Tumkur Road Harohalli will not only enhance connectivity, but will also lead to Kanakapura Road and Others availability of land parcels for development of real estate. Bangalore - Ongoing and Proposed Infrastructure Projects Completion Project Project Details Timeline Signal free Existing stretch of ORR between Hebbal to Silk Board Jn. will be made 2012(E) Outer Ring Road (ORR) signal free with the construction of flyovers and under-passes. Expansion of Terminal 1 to double its capacity. To be increased to over Expansion of Bangalore 17 million passengers a year. December 13 International Airport Completion timeline of 18 months. Under-construction six lane elevated expressway connecting Hebbal to Elevated Bellary Yelahanka. The entire stretch between Hebbal and the BIA will be 2014 Expressways Road an 18 lane highway. Phase 1: N-S corridor connecting Hesaraghatta to Puttenahalli in South and East-West corridor connecting Byappanahalli to Vijayanagar. Entire Phase 1 Phase 1 Reach 1 of Phase 1 Byappanhalli to MG Road was operational in in 2015 October 2011. Bangalore Metro Rail Phase II: Extension of Phase 1 lines connecting Whitefield (in the East), JP Nagar (in the South), Kengeri (to the west) and Nelamangala Phase 2 (to the North). Proposed In addition, two new lines, one connecting Nagawara to Gottigere and the other connecting BTM Layout to Bommasandra has been proposed. Project will act as a feeder network to Metro Rail. Four corridors, Mono Rail Proposed covering 60 km. Formal approval for the project is awaited. Proposed PRR is being executed by Bangalore Development Authority Peripheral (BDA) on Public Private Partnership (PPP) basis. The 110 km ring road Proposed Ring Road will circumnavigate the city connecting all major highways and is currently at land acquisition stage. High Speed Rail Link connecting Hebbal to BIA to the east of Bellary Road. High Speed A 5 m corridor has been identified between the carriageway of NH-44 Proposed Rail Link and the service roads for the HSRL. Timelines not yet announced. Bangalore - Mysore The 4 lane expressway of approximately 111 km connecting Bangalore to Proposed Express Way Mysore is currently on hold on account of land acquisition issues.BANGALORE: RESIDENTIAL MARKET REPORT 8 10. In recent past, Bangalore witnessed entry of large national and In 2011, Bangalore residential market witnessed international developers namely Pashmina Developers, high activity levels in terms of project launches Peninsula, Pruska, Westcourt Real Estate, Unitech, Essar and and absorption rate; but, in 2012, developers many more. Integrated Funds (development arms of Private need to be cautious with new project launches in Equity Fund) have also acquired land across Bangalore region Jayanagar, Sarjapur Road, Whitefield and other micro-markets. order to safeguard balance in the market. Super Luxury projects have been redefined through launches Bangalore cannot afford to witness same number of project of Embassy Boulevard, RMZ Latitude, Prestige White Meadows, launches this year as that of 2011. If the activity level does not Godrej Platinum and serviced apartments by Westcourt. Prior to drop to half of 2011 then, Bangalore residential market will face 2011, Bangalore never witnessed such high activity levels for over supply situation. products priced over INR 5CR. Except Budget category (less than INR 25L), product across Most of the developers such as Prestige, Brigade, TATA, other segments are under pressure with high activity. Even in Puravankara and others are enthusiastic with their experience in Mid category (INR 25L 50L), developers have launched sizeable Budget category (less than INR 25 L). projects which may take longer time for completion. In 2011, Bangalore remained one of the favored real estate markets for Private Equity Funds resulting in their sizeable participation in self-liquidating residential asset class. 15% 13% CAGR for the period Average Annual 2008 - 2011 Price Appreciation 232 Projects 20,600 Units ~44,000 Units 55,400 Units Total Absorbtion in 2011 New Project Launches in 2011 Total Availability 20,031 Apartment Units 49,568 Apartment Units 38,663 Apartment Units 5,768 Villa/Row House Units 568 Villa/Row House Units 5,297 Villa & Row House Units 3% - 6% 4% - 7% Average Rental Yield Average Rental Yield Rate for Class A Rate for Class A Apartment Projects Villa Projects9 11. Till now, the most vibrant residential micro- Bangalores cosmopolitan culture has space for markets were located in SE quadrant; but now different formats in residential developments micro-markets of NE quadrant are also witnessing Apartment, Villa and Row Houses. Bangalore high residential activity. buyers have shown strong liking for lifestyle amenities, theme based and good quality in Currently, Bangalores most promising residential micro residential are ORR, Sarjapur Road, Whitefield and BangaloreNorth. Bangalore

North, like any emerging micro-market during Bangalore is one of the most promising markets for Villanascent phase is witnessing high activity level. projects in India. However, as per current statistics, the market Bangalores Central and Off-Central locations have high has an over expectation from this product. Many underpotential but availability of land at reasonable price remains a construction projects may take longer timeline for completion.challenge. However, many sizeable mixed-use developments Most active micro-markets for Villa & Row Housesalong Old Airport Road, Vivek Nagar and Koramangala are developments are Bangalore North, Sarjapur Road, Whitefieldexpected in next few years on account of relocation of large and Hosur Road.corporate houses and availability of land through slumredevelopment programs. As per absorption analysis, Bangalores buyers are more sensitive compared to other southern Indian cities towards Old Madras Road & Mysore Road micro-markets have quality of the project, amenities and unit sizes. In this city, end-untapped potential available for residential developments. Old users are ready to pay reasonable premium across differentMadras Road would gain traction faster due to its strategic categories towards these aspects of the project.location [proximity to IT hubs Whitefield & ORR, BangaloreInternational Airport and City Center]. Hosur Road is showing signs of oversupply in residentialsegment on account of large developments and maturingeconomic hub in this region.BANGALORE: RESIDENTIAL MARKET REPORT 10 12. In 2011, Bangalore Residential Market witnessed entry of new products - Villament and Branded Homes. Villament is a new type of development that is gaining Westcourt has launched Branded Home - Four Seasons Private prominence in Bangalore. This type of development offers Residences located near Mekhri Circle, Bellary Road. This is part people the best of both worlds, the villa lifestyle at affordable of an upcoming mixed-use development named City View. prices. A typical villament has about 4-8 units in each block with Branded homes come with bespoke design features and have an the ground floor enjoying garden space, the center floors array of services including 24-hour concierge, valet parking, in- enjoying balcony space and the upper floors enjoying their own room dining service and many more. In summary, the homes, terrace space. Some of the projects launched on this concept are although owned by individuals, will be maintained by the Habitat Crest (Whitefield), LGCL Luminaire (off Old Airport Road) hospitality brand. These branded private residences promise a and Sattvas villament project along Sarjapur Road. lifestyle statement in the home segment offering 5-star luxury standards. Bangalore Residential Micro-Markets Bangalore has been divided in following eleven micromarkets based on geography, type of customers, capital values and type of residential development: 1. Central 2. Off-Central 3. ORR (Marathahalli Silk Board Jn.) and Sarjapur Road 4. Whitefield 5. Old Madras Road 6. Bangalore North (Hebbal, Yelahanka, Thanisandra Road and Hennur Road); ORR (KR Puram to Hebbal) 7. Hosur Road 8. Bannerghatta Road 9. Kanakapura Road 10. Mysore Road 11. Tumkur Road11 13. RESIDENTIAL MICRO-MARKET ANALYSIS: POTENTIAL V/S ACTIVITYPotential Index has been established on existing and future and Kanakpura Road are in balanced state because potential,scenario for economic hubs, physical infrastructure, social activity level and inventory are proportionate to each other ininfrastructure and availability of land for development; whereas, these micro-markets.Activity Index is gauged through ratio of availability to annual 4. Mysore Road has opportunity for residential sector but itsabsorption rate. future depends on growth of occupancy levels in Global VillageFindings from this analysis are: and Bidadi Industrial Area.1. Hosur Road is on over supply status as the current availability 5. Bannerghatta Road has affinity for new developments butlevel is high and potential of this region is not likely to improve in availability of land parcel is the critical constraint for futureshort term. growth.2. Bangalore North can also fall under over supply status for 6. Central and Off-Central will always have potential forsome duration unless planned economic activities kick-off in this residential development in luxury category but land availabilitylocation in the near future. is the bottle-neck in these micromarkets as well.3. Whitefield, Outer Ring Road, Tumkur Road, Old Madras Road Off Central Mysore Road Whitefield Outer Ring Road Bangalore North Very High Very High Very High Very High Very High High High High High High Moderate Moderate Moderate Moderate Moderate Stable Stable Stable Stable Stable Low Low Low Low Low Very Low Very Low Very Low Very Low Very Low SM ML SM ML SM ML SM ML SM ML P A AV OL P A AV OL P A AV OL P A AV OL P A AV OL 10 OPPORTUNITY BALANCED 9 8 7 Hosur Road Very High 6 High Potential

Moderate 5 Stable 4 Low Very Low SM ML P A AV OL 3 2 1 BALANCED OVER SUPPLY 0 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Activity Central Bannerghatta Road Old Madras Road Kanakapura Road Tumkur Road Very High Very High Very High Very High Very High High High High High High Moderate Moderate Moderate Moderate Moderate Stable Stable Stable Stable Stable Low Low Low Low Low Very Low Very Low Very Low Very Low Very Low SM ML SM ML SM ML SM ML SM ML P A AV OL P A AV OL P A AV OL P A AV OL P A AV OL LEGEND P: Potential A: Activity AV: Availability OL: Outlook SM: Short to Medium Term ML: Medium to Long TermBANGALORE: RESIDENTIAL MARKET REPORT 12 14. CONSUMER PREFERENCE SURVEY End-user survey was conducted at CREDAI Bengaluru Realty Expo 2011 during 17th and 18th September 2011. Over 1,200 responses were collected [51% - IT/ITeS employed professionals, 13% self- employed & entrepreneurs and 36% included employees working in other sectors]. Key findings include: Strong preference for apartment units: Overall, 52% respondents preferred an apartment unit. High preference for Bangalore North, Whitefield, ORR and Old Madras Road locations: 50% of the total respondents preferred Bangalore North, Whitefield & Old Madras Road and 25% of the total respondents preferred ORR and Sarjapur Road. Most preferred locations include Hebbal, Thanisandra Main Road, Sarjapur Road, Hennur Main Road, Whitefield and Old Madras Road mainly owing to proximity to IT hubs including Whitefield, Electronics City and ORR. 71% of the total respondents intended to invest in a residential unit for self-use as compared to 29% for investment purpose. Respondents preferred products in the price range of 25L 50L and 50L 1CR budget and in terms of unit sizes, 2 BHK, 2 BHK+ Study and 3 BHK were the most preferred. 27% 52% 21% Apartments Villas Residential Plots 60% 40% 20% 0% South North North South Central West West East East Off Central 13% 4% 40% 43% < 25L 25L - 50L 50L 1CR > 1CR13 15. BANGALORE CITY : RESIDENTIAL MICRO-MARKETS NH 7 To Hyderabad N Bangalore International Airport Doddaballapur k Lin Industrial Area ail dR ee Rajanukunte Sp igh dH ose p Pro Ro a d BANGALORE NORTH ng Ri al Baglur h er ip er Yelahanka P ed os op Pr Pr op os Hoskote Industrial ed Pe Area rip h er al Rin NH 4 : To M TUMKUR ROAD Jalahalli Sahakara Nagar Thannisandra gR oa umbai d Budigere HMT Township Manyata Embassy Business Park OLD MADRAS 4 nai BIEC H n Hesaraghatta Cross Hebbal Hennur ROAD N To Che Avalahalli HBR Layout NICE Rid Roa Nagawara Peenya Industrial Ou t ng IISc er R Seegehalli Area in g Ro ad od d a RMV Extension ITI gR Banaswadi Rin Palace Krishnarajapuram Malleshwaram ter Grounds Ou Rajaji Nagar Frazer Town Whitefield To Ma Byappanahalli gadi MG Road ITPB Bangalore City C.V. Raman Nagar Railway Station CDB Indira Nagar WHITEFIELD Bagmane Richmond Town Jeevan Bhima Brookefield MYSORE ROAD Vijaya Nagar Nagar Tech Park Marathahalli Varathur Mysore Road OFF-CENTRAL Jaya Nagar Cessna P oposed Peripheral r Koramangala Business Park Ring Road Banashankari Bellandur SH 17: To Magadi J.P. Nagar HSR Layout Kengeri Puttenahalli B.T.M. Layout Wipro IIMB Hosa Road NI Begur C ER Haralur in Jagaranahalli Arkere Kumbalgodu gR oa OUTER RING ROAD Industrial Area d Kothnur Kudlu Dommasandra Thalagattapura Gottigere BMIC Expressway NICE Ring Road KANAKAPURA ROAD BANNERGHATTA ROAD Electronic City Bommasandra Bommasandra & Jigani Prop Industrial Area os ed Pe riphe ral Ring Roa d HOSUR ROAD NH 209: NH 7: To Coimbatore To Salem Metro Rail Operational Proposed Mono Rail LEGEND Metro Rail Phase 1 Under Construction Proposed High Speed Rail Link Proposed Metro Rail Phase 2 Proposed Peripheral Ring RoadBANGALORE: RESIDENTIAL MARKET REPORT 14 16. CENTRAL15 17. This micro-market is set to witness development of Micro-Market Fact File luxury residential projects. Limited availability of Key Locations land for development is the only deterrent for this micro-market. MG Road, Kasturba Road, Brunton Road, Lavelle Road, Richmond Road, Residency Road, Frazer Town, Cox Town and Hanes Road The micro-market has colonies/towns existing since British Key Economic Magnetsperiod. Therefore, this region predominantly comprises of old Central Business District (CBD) and Secondary Businessresidential developments mainly villas and individual District (SBD)bungalows. Today it is a preferred location by HNIs and NRIs. Key Retail Locations Due to lack of availability of large land parcels and high capitalvalues, this quadrant witnessed limited fresh residential supply;most

of the upcoming residential projects are small scaled MG Road, Brigade Road and Commercial Streetluxury apartment developments. Malls: Operational, UC & Planned (In million sqft) Key under construction projects include Prestige Edwardian,Brigade Sonata, Total Environments Van Goghs Garden, Skyline Garuda Mall (0.3), Sigma Mall (0.12), Victoria Embassy (0.16),Villa Maria, HM Grandeur and Vaishnavi Prime. UB City (0.13), 1 MG Road (0.18), Embassy Galaxy Mall (0.19) Key developments planned in this zone include Prestige Key Educational InstitutesKingfisher Tower, Century Renata, Nitesh Park Avenue, EmbassyOasis and others. University of Vishweshwaraiah College of Engineering (UVCE), Mount Carmel College, St. Josephs College Size of typical development ranges between 30,000 sqft to80,000 sqft; residential units are sized between 2,000 3,500 Health Care Facilitiessqft (Class A); 1200 2600 sqft (Class B). Hospital for Orthopaedics, Sports Medicine, Arthritis & Trauma (HOSMAT), Mallya Hospital, Fortis Hospital, Seventh Day This micro-market will continue to perform good owing to Adventists Hospital, Lakeside Hospitallimited supply and high demand. The capital values are expectedto appreciate at 12% 15% per annum. In future, theredevelopment of old properties is likely to gain traction on 135 Units 138 Unitsaccount of availability of higher Floor Space Index (FSI) and rising Average Annual Totalcapital rate. Absorption Availability INR 7,500 25,000 INR 6,000 - 14,000 per sqft per sqft Apartments Capital Values for Capital Values for Super Class A Apartment Class B Apartment Particulars Premium Luxury Luxury Sub-Total Total Projects Projects 50L-1Cr 1Cr-3Cr 3Cr-5Cr >5Cr Availability* 0 22 29 87 138 138 15% 4% - 7% Average Annual Average Rental Total Supply** 18 53 91 127 289 289 Price Appreciation Yield Rate* Includes unsold stock of completed, under-construction and planned projects available with the developer.** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 16 18. OFF-CENTRAL17 19. This is one of the most desired micro-market by Micro-Market Fact File end-users, institutional investors and Key Locations developers. In next 3 to 5 years, this micro- market is likely to witness development of Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleshwaram, RMV Extension, Sanjay Nagar, RT Nagar, Pottery Road, Rajajinagar mixed-use projects in luxury category. Key Economic Magnets This micro-market comprises of sub markets located around Koramangala, Malleshwaram, Indiranagar, Jayanagarthe city center. This location also has high demand but qualityspace supply is limited. Key Retail Locations It has access to high quality social infrastructure and improved Indiranagar (100 & 80 Feet Road), CMH Road, Koramangalaurban infrastructure. (100 & 80 Feet Road), Jayanagar (4th & 9th Block), Malleshwaram Residential developments in this zone are marked by spacious (Sampige Road & Margosa Road), New BEL Road, JP Nagar (ORR)units with one unit in each floor or duplex; concept based Malls: Operational, UC & Planned (In million sqft)development and world-class amenities. Mantri Square (1.7), Total Mall (0.22), Mantri Junction (0.28), Four Seasons Private Residences would be Bangalores first Sigma Mall (0.25), Salarpuria Oasis Mall (0.55), The Forum (0.65), Brigade Orion Mall (1.1), Nitesh Mall (1.2), G Corp Mall (0.3)branded home. This is part of an upcoming mixed-usedevelopment named City View by an international player Key Educational InstitutesWestcourt, located near Mekhri Circle, Bellary Road. Christ University, MES College of Arts Commerce & Science, This micro-market will witness many more mixed-use BMS Institute of Technology, KIMS, BITdevelopments in coming years. As per market information, large Health Care Facilitiessized land parcels in Old Airport Road, Vivek Nagar andKoramangala are in planning stage for mixed-use developments Columbia Asia Hospital, St. Johns Medical Hospital, Nimhansin luxury category. Hospital, Fortis Hospital, MS Ramaiah Memorial Hospital, ESI Hospital In recent past this micro-market has witnessed large scaleddevelopments including Brigade Gateway, L&T South City, ElitaPromenade and others. Prominent under construction residential developments 1,500 Units 1,372 Unitsinclude Pride Picassa, K. Rahejas Vivarea Brigade Crescent, ETA Average Annual Absorption Total AvailabilityBeau Monde, LGCL Luminaire, Pride Pavillion, Sobha DewFlower, Purva Atria, Four Season Residences, Vaishnavi Terracesand others. INR 4,000 - 18,000 INR 8,500 - 10,000 INR 3,500 - 8,000 per sqft per sqft per sqft Key planned projects: Divyasree 77 East, Embassy Grove, Jain Capital Values for Capital Values for Capital Values forHeights East Parade and others. National developers & Class A Apartment Class A Villa Class B Apartment Projects Projects Projectsintegrated funds including V Raheja, Phenoix Market City,Peninsula, Azure

Capital and others have plans to launch theirprojects in this micro-market in 2012. 17% 4% - 7% Average Annual Average Rental Availability of matured social infrastructure and limited quality Price Appreciation Yield Ratespace supply are the key reasons for good performance of thismicro-market; during next 3 years, this region is expected towitness capital appreciation of 15% - 18% per annum. Apartments Villas Particulars Budget Mid-Range Premium Luxury SubTotal Premium Luxury Super Luxury Sub-Total Total < 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr3Cr 3Cr-5Cr > 5Cr Availability* 518 695 23 0 1,236 0 0 32 104 136 1,372 Total Supply** 1,101 1,094 80 13 2,288 0 0 72 0 72 2,360 * Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 18 20. ORR [Marathahalli Jn - Silk Board Jn] & Sarjapur Rd19 21. Major upcoming developments include Assetz Homes Loft, Currently, ORR is the most active IT hub of India. Assetz Homes Clover Greens and others This is driving residential demand in this micro- Currently, this micro-market is in stable status; prices are likely market. In addition on-going physical & social to appreciate at 12% -14% per annum. infrastructure developments are supporting the demand environment. This micro-market is likely Micro-Market Fact File to remain strong for at least next 3 to 5 years. Key Locations HSR Layout, ORR (Marathahalli Jn. - Silk Board Jn.), Sarjapur Road, This micro-market can be subdivided into 3 sub-markets: Haralur Main Road, Hosa Road, Kasavanahalli Main Road- ORR (Silk Board Jn. Bellandur Jn.), Key Economic Magnets- ORR (Bellandur Jn. to Marathahalli Jn.) ORR IT Hub, Whitefield IT Hub, Electronics City IT Hub, Hosur Road- Sarjapur Rd (ORR Bellandur Jn. to Sarjapur Village). Key residential development along ORR (Silk Board Jn. Key Retail LocationsBellandur Jn.) is BDA promoted HSR Layout. In HSR layout fewprivate developers have apartment projects. Whereas, ORR ORR (Marathahalli Jn. - Silk Board Jn.), Sarjapur Main Road, HSR Layout(Bellandur Jn. to Marathahalli Jn.) and Sarjapur Rd (ORRBellandur Jn. to Sarjapur Village) are dominated by private Malls: Operational, UC & Planned (In million sqft)developers projects housing mainly IT population working inORR, Electronics City and Whitefield. Soul Space Arena (0.48), Soul Space Spirit (0.45), Total Mall (0.24) There are many international schools/education institutionslocated Off Sarjapur Road. However, other social infrastructure Key Educational Institutesis just adequate; but completion of under construction retail &entertainment developments will improve this aspect in coming New Horizon College of Engineering, Inventure Academy, Amrita School of Engineeringyears. Also, completion of ongoing fly-overs along ORR will easeaccessibility. Health Care Facilities Urban infrastructure is good in HSR Layout but many parts of VIMS Hospital, Greenview Medical Center, Sri Sai Multi specialityother submarkets of this region do not have quality roads, Hospital, Lakeview Hospital, Greenview Medical Centre,footpaths, street lights and other basic urban infrastructure. Star Hospital & Research Centre Currently, outside BDA promoted layouts, municipal waterconnections are not available and population is dependent on 2,100 Units 7,709 Unitsbore wells for water. The water table is depleting at alarming rate Average Annual Total Absorption Availabilityin this micro-market on account of high residential activity. This micro-market has witnessed residential developmentacross different segments and pricing points. INR 2,000 - 8,800 INR 2,000 - 7,500 INR 2,000 - 3,500 per sqft per sqft per sqft Capital Values for Capital Values for Capital Values for Prominent residential developments which are under Class A Apartment Class A Villa Class B Apartment Projects Projects Projectsconstruction include Assetz Homes 27 Park Avenue, NiteshCape Cod, Prestige Sunnyside, Vaswani Reserve, SobhaCinnamon, Purva Skywood, Mantri Espana, Adarsh PalmRetreat, Embassy Pristine and others. 13% 3% - 6% Average Annual Average Rental Price Appreciation Yield Rate Apartments Villas Particulars Budget MidRange Premium Luxury Sub-Total Premium Luxury Super Luxury Sub-Total Total < 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 1,067 1,895 2,721 740 6,423 899 262 125 0 1,286 7,709 Total Supply** 1,817 4,515 6,410 1,989 14,731 1,621 346 167 0 2,134 16,865 * Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 20 22. WHITEFIELD21

23. This is a well-developed suburb of Bangalore. It Micro-Market Fact File has required physical & social infrastructure to Key Locations support future growth. Whitefield, Brookefields, Mahadevapura, ORR (KR Puram Jn. - Marathahalli Jn.), Varthur Road Whitefield emerged as an IT Hub in late 1990s and the initial Key Economic Magnetsimpetus was provided with formulation of Karnataka IndustrialAreas Development Board (KIADB) promoted the Export Whitefield IT Hub, ORR IT Hub and Industrial units located inPromotion Industrial Park (EPIP) in 1994. Further, development the EPIP Zoneof International Technology Park Bangalore (ITPB) catalyzed ITdevelopment in this micro-market. Key Retail Locations Sizeable IT/ITeS population, availability of land and Whitefield Main Road, Brookefields, ORR (KR Puram Jn. -connectivity to other parts of the city are the primary reasons Marathahalli Jn.), Varthur Roaddriving residential development in this micro-market. Over thelast one decade, the micro-market has developed as a self- Malls: Operational, UC & Planned (In million sqft)sustaining suburban area with development of residential The Forum Value Mall (0.47), The Cosmos Mall (0.14), Ascendas(Apartment & Villa), retail projects and other social Park Square (0.6), Brigade -The Arcade (0.08), Phoenix Market Cityinfrastructure. (1.15), Raheja Inorbit Mall (0.5), Forum Mall (1.1), Virtuous Whitefield Xander Mall (0.42), Total Mall (~0.15) Developments in this micro-market are characterized byPremium category (Rs 50L 1CR) & Luxury category (>Rs 1CR) Key Educational Institutesapartment projects in Brookefields, Whitefield Main Road & MVJ College of Engineering, CMRIT, International Schools,Varthur Main Road; Villa developments in the Luxury category Vydehi Medical College(Rs 1CR3 CR) & Super Luxury (Rs 3CR5CR) mostly located alongVarthur &Whitefield Main Roads. Health Care Facilities The micro-market also houses two large integrated Sri Sathya Sai Super Speciality Hospital, Vydehi Institute ofdevelopment projects, namely Brigade Metropolis and Prestige Medical Sciences & Hospital, Sankara Eye Hospital, Sathya Sai General HospitalShantiniketan. This micro-market has witnessed residential developmentmainly in mid and premium segments of apartment type. Prominent residential developments which are under 2,250 Units 7,923 Unitsconstruction include UKN Esperanza, Prestige Silver Oak, Average Annual Absorption Total AvailabilityPrestige White Meadows, Prestige Park View, Nitesh FlushingMeadows, SJR Legacy, Akme Encore and others. Major upcoming developments include NCC Ivory Heights, INR 3,000 - 7,100 INR 3,750 - 10,700 INR 2,400 - 4,200 per sqft per sqft per sqftSobha Dreams One, SJR Vogue, Samruddhi White Pebbles and Capital Values for Capital Values for Capital Values forothers. Class A Apartment Projects Class A Villa Projects Class B Apartment Projects Currently, this market has sizeable supply especially in Class Bcategory. This micro-market is a promising suburb butdevelopers need to be very careful in pricing & sizing of projects. 13% 4% - 6% Average Annual Average RentalAs per market sources, many regional, national & international Price Appreciation Yield Ratedevelopers are planning their projects in this region. If projectsare launched at current pace this market may face over supplysituation. Apartments Villas Particulars Budget Mid-Range Premium Luxury Sub-Total Premium Luxury Super Luxury Sub-Total Total < 25L 25L-50L 50L1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 0 4,692 2,129 634 7,455 0 458 10 0 468 7,923 Total Supply** 0 8,396 5,362 1,134 14,892 0 867 35 66 968 15,860 * Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at prelaunch phase)BANGALORE: RESIDENTIAL MARKET REPORT 22 24. OLD MADRAS ROAD (KR Puram - Hoskote)23 25. Demand is set to remain strong in this region. The residential This is one of the most promising emerging activity will increase in coming years. This market will attract micro-markets for residential segment. In this developers for projects especially in mid-category on account of region, residential development activity levels large land parcels at comparatively lower price. The capital value have increased post widening of the highway and will appreciate at 12% - 14% per annum commencement of Bangalore International Micro-Market Fact File Airport (BIAL) in 2008. In medium term, planned Peripheral Ring Road will further improve Key Locations connectivity of this micro-market to other Pai Layout, KR Puram, Ramamurthy Nagar, Krishnarajapuram, regions of the city. Battarahalli, Sonnenahalli, Hirandahalli, Budigere, Devanahalli -Hoskote Road. Key Economic Magnets This micro-market has gained traction as a residential hub postwidening of this Highway in 2009. Other key reasons for gain inresidential development activity are: Hoskote

Industrial Area, Whitefield & ORR IT Hub-This micro market is located between IT Hub Whitefield and Key Retail LocationsBangalore International Airport.- The proposed Peripheral Ring Road would improve its OMR Road (until KR Puram bridge), Krishnarajapuramconnectivity to existing and upcoming IT hubs - Whitefield,Electronics City, ORR and International Airport. Malls: Operational, UC & Planned (In million sqft)- Availability of large land parcels Gopalan Signature Mall (0.3), OMR Platinum Mall (0.7)- Proximity to Bangalore City Center (KR Puram is only 5 Kmsfrom MG Road) Key Educational Institutes- Expected IT developments in this region: Bearys Group hasalready developed an IT Park in this region Garden City College, Kristu Jyoti College, Cambridge Institute of Technology-Growth of industrial development in Hoskote Industrial Areaand proposed logistic infrastructure would intensify further Health Care Facilitiesgrowth in this region. Koshys Hospital, Epidemic Diseases Hospital, BEML Hospital Currently, social infrastructure is not adequate in this micro-market. It is dependent on OffCentral locations (CV RamanNagar, Indiranagar) and Whitefield for the same. 950 Units 3,111 Units This market has witnessed residential development mainly in Average Annual Total Absorption Availabilitymid category for apartment type development andpremium/luxury category in Villa/Row House developments.The key reasons for cost sensitive development in this region arecomparatively low land price & abundant land availability. INR 2,400 - 5,200 INR 2,500 - 9,300 INR 2,400 - 4,000 per sqft per sqft per sqft Capital Values for Capital Values for Capital Values for Prominent under construction residential developments Class A Apartment Class A Villa Class B Apartment Projects Projects Projectsinclude Prestige Tranquility, Pashmina Waterfront, BrigadeExotica, Sattva Magnificia, Pruska Silvana Houses, Purva MidTown, Samruddhi Lake Drive, Samruddhi Mystic Wind and etc 14% 3% - 5% Average Annual Average Rental Major Upcoming development include Manyata Greenbay, Price Appreciation Yield RateHebron Enclave and others Apartments Villas Particulars Budget Mid-Range Premium Luxury Sub-Total Premium Luxury Super Luxury Sub-Total Total < 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 35 882 1,094 530 2,541 427 88 0 55 570 3,111 Total Supply** 140 2,817 1,609 708 5,274 572 215 0 72 859 6,133 * Includes unsold stock of completed, underconstruction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 24 26. NORTH BANGALORE25 27. In future, development of large scale integrated Micro-Market Fact File theme based townships will characterize real Key Locations estate development in Bangalore North. Banaswadi, HRBR Layout, Hennur Road, Thanisandra Main Road, Bellary Road, Yelahanka, Kogilu, Chokkanahalli, Bagalur Road, This micro-market gained traction post commencement of Doddabalapur Road, New Town Yelahanka, JakkurBangalore International Airport in 2008. The key drivers for Key Economic Magnetsresidential activity in this region are improving physicalinfrastructure, emerging economic hubs of Bangalore and ORR IT Hub, Doddabalapur Industrial Area, BIALavailability of land for development. Government is aggressivelypromoting this region for future economic activities. This micro- Key Retail Locationsmarket is poised to be next economic epicenter of Bangalore. This micro-market is also attracting retail investors (HNIs and NRIs) Hebbal, New Town Yelahanka, Bellary Road, Sahakarnagarfor investments in upcoming residential developments on accountof expected high growth rate. Malls: Operational, UC & Planned (In million sqft) Most of the residential developments located in New Town Esteem Mall(~ 0.2), Century Corbel (0.13), RMZ Galleria (0.45),Yelahanka, Thanisandra Road and Hennur Main Road are apartment MSR The Elements Mall (0.55), Brigade Orion Mall (0.35),projects in mid and premium categories. Projects located along GMR Mall, Sattva Mall (0.55), Century Mall (1.2)Bellary Road & Hebbal are in the luxury segment. Also, a fewnational developers are planning to launch large scale budget Key Educational Institutessegment projects in this micro-market. MVIT, BMSIT, Reva Institute of Technology, KNSIT, Nitte College of Engineering, Nagarjuna College of Engineering, Brindavan Social infrastructure is good in Yelahanka but other submarkets College of Engineering, Kristu Jayanti College, Presidency College,lack adequate social infrastructure. However, developers have Government Flying Training Schoolplans to develop required social infrastructure in coming years. Health Care Facilities Non-availability of water is the key deterrent for development inthis micro-market. Government needs to step-up its effort in this Columbia Asia, Bangalore Baptist Hospital,

Dhanvantri Hospital,direction in order to develop planned economic hubs. Krishna Devaraya Dental Hospital Many developers like Prestige, Sobha, Brigade, Hiranandani andothers have launched Villa projects near Devanahalli region. Prominent under construction residential projects in this regioninclude RMZ Latitude, Godrej Crest, Godrej Platinum, RMZ Galleria,Prestige Oasis, Sobha City, RMZ Sawaan, Brigade Orchids,Embassy 1,680 Units 13,456 UnitsBoulevard, Ozone Urbana and others. Average Annual Total Absorption Availability Key upcoming projects include Nitesh Malibu, Divyasree Valley ofthe Wing and others. INR 2,900 9,200 # INR 3,700 - 10,000 INR 2,300 - 5,000 Currently, this micro-market is set for an oversupply situation per sqft per sqft per sqftunless key planned economic activities kick-off. This region is likely Capital Values for Capital Values for Capital Values for Class A Apartment Class A Villa Class B Apartmentto be in in-balance state for some time on account of high Projects Projects Projectsexpectation. The annual capital appreciation rate is likely to dropfrom current levels on account of excessive activity. However, in themid to long term, this micro-market is one of the most promising 17% 3% - 6%growth corridors of Bangalore. Average Annual Average Rental Price Appreciation Yield Rate This micro-market is likely to gain momentum in coming years as ithas very high potential for growth. This micro-market is set todevelop as a next key suburb of Bangalore and traction is only likelyto improve in coming years. Apartments Villas Particulars Budget Mid-Range Premium Luxury Sub-Total Premium Luxury Super Luxury SubTotal Total < 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 2,210 5,235 3,466 986 11,897 0 863 414 282 1,559 13,456 Total Supply** 4,469 9,251 6,856 1,539 21,115 0 1,719 486 412 2,617 23,732 * Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase) # Includes capital values of Affordable HousingBANGALORE: RESIDENTIAL MARKET REPORT 26 28. HOSUR ROAD27 29. This micro-market has witnessed growth of large Micro-Market Fact File scale residential and integrated township Key Locations projects. However, in the recent past, absorption levels have remained low compared to Hosur Main Road, Electronics City, Neeladri, Chandapura Circle availability. and Anekal Key Economic Magnets Till 1991, this micro-market was driven by industrialdevelopments in Hosur, Bommasandra and Jigani. Post 1991, Electronics City, Jigani and Bommasandra Industrial AreasElectronics City established itself as an IT Hub and housingrequirement for working population increased manifold Key Retail Locationsresulting in high residential activity in this region. Bannerghatta Road, BTM Layout However, this region did not develop as a suburban area owingto poor urban infrastructure, absence of integrated planningand fractured social infrastructure. Malls: Operational, UC & Planned (In million sqft) This micro-market is one of the most active regions of Total Mall (0.18), Neo Mall (1.7)Bangalore for budget category residential development. Budgetcategory projects are mainly around ChandapuraAnekal region Key Educational Instituteswhereas a few locations have projects in mid and luxurycategory. Oxford College of Engineering, PES College of Engineering, Symbiosis College, International Institute of Information Size of typical development ranges between 250 and 1000 Technology (IIIT)units. However, Patel Neo Town is an integrated Township Health Care Facilitiesspread across 2500 acres. Live 100, Oxford Hospitals, Narayana Hrudayalaya, In 2009, completion of elevated expressway between Silk Blossom HospitalBoard Junction and Electronics City improved the connectivity inthis region. Key ongoing projects include Salarpuria Greenage, Ajmera 1,500 Units 7,278 UnitsInfinity, Patel New Town, Pride Crosswinds, SJR Primecorp Average Annual Total Absorption AvailabilityTrillium, Uniworld Resorts and VBHC Vaibhava. Key planned developments are SJR Primecorps Fiesta Homesand expansion of existing projects. INR 2,500 - 4,500 INR 2,300 - 5,000 INR 1,500 - 3,000 per sqft per sqft per sqft Capital Values for Capital Values for Capital Values for Currently, this micro-market is in oversupply situation and Class A Apartment Class A Villa Class B Apartmentdemand is likely to flatten/drop owing to saturation of economic Projects Projects Projectshubs in this region. Prices are likely to be under downwardpressure in short term. In medium term, attractiveness of thismicro-market can improve with implementation of planned 8% 3.5% - 4% Average Annual Average RentalMetro Rail Phase 2 and growth of economic activities in Price Appreciation Yield RateElectronics City Phase 3 & in Hosur. Apartments Villas Particulars Budget Mid-Range Premium Luxury Sub-Total Premium Luxury Super Luxury Sub-Total Total < 25L 25L-50L 50L-

1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 2,703 2,320 1,435 0 6,458 397 420 3 0 820 7,278 Total Supply** 4,402 3,848 2,009 0 10,259 1,107 505 0 0 1,612 11,871 * Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 28 30. BANNERGHATTA ROAD29 31. This micro-market is progressing towards Micro-Market Fact File saturation state with limited land availability and Key Locations flattening growth in southern Bangalore economic hubs. It is still one of the most Bannerghatta Main Road, Begur Road, BTM Layout preferred micro-markets of IT/ITeS professionals and population of Bangalore South owing to Key Economic Magnets availability of good and improving social Bannerghatta Road, Koramangala, Outer Ring Road (Silk Board Jn. infrastructure. to Sarjapur Road) Key Retail Locations Since early 1990s, this micro-market emerged as a residentialhub housing IT/ITeS population working in IT Parks located in Bannerghatta Road, BTM LayoutBannerghatta Road and Electronics City. This micromarket isalso a preferred location for senior and middle management Malls: Operational, UC & Planned (In million sqft)working in manufacturing plants located in Jigani andBommasandra. In addition, this region is a natural choice for Gopalan Innovation Mall (0.18), Royal Meenakshi Mall (0.3),growing resident population of Jayanagar and JP Nagar . SJR Spectrum (0.5), Vega City (0.7) Currently, in Bannerghatta Road residential activity is Key Educational Institutesflattening because of limited availability of clear titled landparcels and restricted land use zoning. Moreover, IT growth is IIM Bangalore, Alliance Business School, Jayadeva Instituteshifting from this quadrant towards East and North of Bangalore of Cardiologythereby softening the residential demand. In this quadrant,residential activity is increasing in Kanakapura Road due to lower Health Care Facilitiesland prices and enhanced connectivity through under Fortis Group of Hospitals, Sagar Hospitals, Apollo Hospitals,construction Metro Rail Phase 1 project. Jayadeva Hospital This micro-market has matured social infrastructure retailmalls, entertainment centers, hospitals and educationinstitutions .Two more mixed use developments (retail,entertainment and hotel) are under construction. 1,400 Units 3,628 Units Average Annual Total Apartment projects in premium category dominate this Absorption Availabilitylocation; however, mid and luxury category residentialdevelopments also have share in this market. INR 3,500 - 6,600 INR 5,000 7,000 INR 2,500 - 3,850 Prominent under construction residential developments per sqft per sqft per sqftinclude Hiranandani Upscale, DLF Westend Heights, Nitesh Hyde Capital Values for Capital Values for Capital Values for Class A Apartment Class A Villa Class B ApartmentPark, Projects Projects Projects Currently, this micro-market is stable; capital rates willappreciate at 12% -14% per annum. Mantri Pinnacle and SJR 12% 4% - 5%Primecorp Luxuria. Average Annual Average Rental Price Appreciation Yield Rate Planned Projects include Mahaveer Riviera, MaangalyaAshirvad, SNN Raj Lakeview Phase 2 and others. Apartments Villas Particulars Budget Mid-Range Premium Luxury Sub-Total Premium Luxury Super Luxury SubTotal Total < 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 102 2,345 738 207 3,392 0 192 44 0 236 3,628 Total Supply** 0 4,307 1,664 364 6,335 0 460 44 0 504 6,839 * Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 30 32. MYSORE ROAD31 33. This micro-market has witnessed growth in Micro-Market Fact File residential segment only in the recent past and Key Locations future depends on growth of occupancy levels in Global Village (an IT Park) and Bidadi industrial Mysore Road, Kengeri Satellite Town, Vijaynagar, Magadi Road, Rajarajeshwari Nagar area. Key Economic Magnets Till 2008, this micro-market has attracted limited interest from Global Village IT Park, Harohalli Industrial Area, Bidadi andreal estate developers as residential activity in Bangalore Kumbalgodu Industrial Arearemained largely confined to southern and eastern regions ofthe city. Key Retail Locations This micromarket is dominated by industrial developments Rajajeshwari Nagar, Mysore Road and Gandhi Bazaarand educational institutions. Since late 1980s Kumbalgodu &Bidadi industrial areas attracted key domestic & globalmanufacturing plants in the region. Malls: Operational, UC & Planned (In million sqft) In 2001, commencement of Global Village, an IT Park located Gopalan

Arcade Mall (0.1), Gopalan Legacy Mall (0.17),Off Mysore Road, also could not provide sufficient traction for Aga Mall (0.1)Class A residential development in this region owing to slow Key Educational Institutesgrowth rate of IT development. However, post 2009, this micro-market attracted few RV College of Engineering, Bangalore University, Indian Statistical Institute, RNS IT, National Law Schooldevelopers namely Salarpuria, Century, Good Earth, Era Groupowing to: Health Care Facilities- Development of Global Village Special Economic Zone Rajarajeshwari Hospital, Manipal Speciality Hospital- Increased activity in Bidadi Industrial region- Enhanced social infrastructure - Gopalan Mall- Improved connectivity via NICE Ring Road & ORR. The residential activity is set to increase in this micro-market innear future on account of ongoing Metro Rail Phase 1 & key IT 450 Units 1,206 Units Average Annual Totalcompanies expansion in this micro-market. Absorption Availability This micro-market has witnessed residential activity largely inmid & budget categories. INR 2,500 - 3,600 INR 6,000 INR 1,500 - 2,900 Ongoing projects include Salarpuria Melody, Good Earths per sqft Capital Values for per sqft Capital Values for per sqft Capital Values forMalhar Footprints, Century Indus, The Arena and others. Class A Apartment Class A Villa Class B Apartment Projects Projects Projects Key planned residential developments in this zone include ETAStar Jardine Residences and projects by Kumar Properties andKumar Urban Development Limited. 8% 3% - 3.5% Average Annual Average Rental Currently, the availability of residential units is not high in this Price Appreciation Yield Ratemicro-market. Therefore, this location is likely to witness newlaunches & expansion of existing projects. In next 3 years, expectedannual appreciation rate is between 8% and 10%. Apartments Villas Particulars Budget Mid-Range Premium Luxury Sub-Total Premium Luxury Super Luxury Sub-Total Total < 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 154 619 340 0 1,113 68 0 25 0 93 1,206 Total Supply** 476 1,893 1,285 0 3,654 96 0 86 0 182 3,836 * Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 32 34. KANAKAPURA ROAD & BANASHANKARI EXTN.33 35. In this micro-market, residential activities have Micro-Market Fact File increased in recent past with completion of Key Locations Nandi Infrastructure Corridor Enterprises (NICE) Ring Road, under-construction Metro Rail Phase Kanakapura Main Road, Banashankari and Uttrahalli 1 and saturation of Bannerghatta micro-market. Key Economic Magnets This micro-market grew as an extension of Bangalore South Suburban IT/ITeS locations of Koramangala andlocations Jayanagar, JP Nagar and Banashankari. Like Bannerghatta RoadBannerghatta Road, residents of this zone are IT professionalsworking in Bannerghatta Road and Electronics City; also this Key Retail Locationslocation houses people working in industries located alongKanakapura Road & Harohalli industrial area. JP Nagar and Jayanagar Currently, this micro-market is dependent on JP Nagar and Malls: Operational, UC & Planned (In million sqft)Jayanagar for entertainment and other social infrastructure.However, completion of under construction retail mall Unitech Unitech Gardens Galleria (0.45)Garden Galleria will improve the situation. Condition of urbaninfrastructure foot paths and road is average in this region. Key Educational Institutes Key ongoing projects include Sobha Forest View, BrigadeMeadows, Brigade Omega, Total Environment Magic Far Away Skanda Central School and College, PES College of PharmacyTree, TATA Promont and others and Dayanand Sagar College Key upcoming projects include Century Central, Golden Gate Health Care FacilitiesProperties Panorama, Skyline Constructions Exaltus and others Sri Sai Ram Hospitals, CB Group of Hospitals, Currently, this micro-market is in stable status; capital values Sri Sri Wellness Centreare expected to appreciate at 14% - 15% per annum. In shortterm this region would witness more residential projectlaunches owing to land availability and commencement of 1,500 Units 5,415 Unitsunder construction Metro Rail project. Average Annual Total Absorption Availability INR 3,000 - 6,000 INR 3,800 INR 2,000 - 3,600 per sqft per sqft per sqft Capital Values for Capital Values for Capital Values for Class A Apartment Class A Villa Class B Apartment Projects Projects Projects 14% 3% - 4% Average Annual Average Rental Price Appreciation Yield Rate Apartments Villas Particulars Budget MidRange Premium Luxury Sub-Total Premium Luxury Super Luxury Sub-Total Total < 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 98 1,058 3,250 409 4,815 0 600 0 0 600 5,415 Total Supply** 1,542 2,145 6,030 472 10,189 0 1,000 0 0 1,000 11,189 * Includes

unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 34 36. TUMKUR ROAD35 37. Rise of this micro-market is due to availability of Micro-Market Fact File land parcels, large and growing industrial hub, Key Locations densely populated region, improvised connectivity through NICE Ring Road & Elevated Tumkur Road, Rajajinagar, Hesaraghatta, Jallahalli, HMT Township, Yeshwantpur Expressway and presence of Bangalore International Exhibition Center. This micro- Key Economic Magnets market has immense potential for residential development especially in budget and mid Industrial locations of Peenya, Nelamangala and Dobbaspet categories. Key Retail Locations The micro-market of Tumkur Road is primarily an industrial Malleshwaram and Rajajinagardestination with traditional and established industrial clusters ofBangalore namely Peenya and Yeshwantpur industrial areas. Malls: Operational, UC & Planned (In million sqft)Tumkur road being an industrial corridor houses variousengineering and manufacturing industries along its stretch. In Mantri Square (0.93), Rockline Garuda Mall (0.98), Golden Heights (0.14), Brigade Orion (0.8),addition, Hindustan Machine Tools (HMT) township, spread Vaishnavi Sapphire (0.28)across 475 acres is also located in this micro-market. Key Educational Institutes In early 2000s saturation in city center locations, steadygrowth in real estate, and availability of land for redevelopment National Institute of Design, Indian Institute of Science,led to spill over of activity in locations such as Yeshwantpur and MS Ramaiah Institute of TechnologyHMT layout. In 2008, completion of Bangalore International Health Care FacilitiesAirport in Devanahalli further strengthened this region as apreferred destination for development of real estate. Columbia Asia Under construction Metro Rail project and availability of largeindustrial land for development are adding further impetus todevelopment in this region. Brigade Gateway an integrated township is a success story of 1,200 Units 4,100 Unitsthis micromarket. Many Grade A developments are located Average Annual Totalalong Tumkur Road from Yeshwantpur till ORR. Absorption Availability Key ongoing projects include Vaishnavi Nakshatra, GoldenGrand, Sobha Aspire, Salarpuria Luxuria, Golden Grand and INR 3,500 - 6,500 INR 2,000 - 4,000others per sqft per sqft Capital Values for Capital Values for Class A Villa Class B Apartment Key planned projects from Phoenix Mills Group and Tata Realty Projects ProjectsGroup. This micro-market is currently in stable state. In this region,prices are likely to appreciate between 10% 12% per annum in 12% 3% - 4% Average Annual Average Rentalshort term. The scenario will further improve with Price Appreciation Yield Ratecommissioning of under construction Metro Rail Phase 1 projectin next few years. Apartments Villas Particulars Budget Mid-Range Premium Luxury Sub-Total Premium Luxury Super Luxury Sub-Total Total < 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr Availability* 1,372 1,300 1,423 5 4,100 0 0 0 0 0 4,100 Total Supply** 1,677 2,655 2,772 360 7,464 0 0 0 0 0 7,464 * Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)BANGALORE: RESIDENTIAL MARKET REPORT 36 38. OUTLOOK Bangalores residential segment is likely to grow annually at 15% for next 3 years. The most active micro-markets are ORR, Whitefield and Bangalore North. In 2012, Bangalore is pegged to absorb 23,000 residential units. The capital value will appreciate on account of rising construction cost and land price between 8% and 18% across different micro-markets. South East micro-markets - Whitefield and ORR will remain highly active in short to medium term owing to proximity to established IT economic hubs. However, next growth direction would be North East Old Madras Road & Bangalore North (Hennur Road, Thanisandra Road and Bellary Road). Even though, Bangalore North may face over supply situation in short term owing to over enthusiasm of developers, long term potential of this micro-market continues to remain very high. Economic outlook for the city continues to remain strong in coming years with many large IT/ITeS, engineering and automobile MNCs having aggressive growth plans for the city. This would ensure healthy growth rate in residential segment. Basic requirement like availability of water is posing a serious threat to development scenario in Bangalore. Availability of higher FSI along key growth corridors and Metro Rail project will result in development of mixed use

projects. Under construction and planned Infrastructure projects - Metro Rail, Peripheral Ring Road will flatten capital values across different micro-markets and unlock many peripheral locations for further development.37 39. GLOSSARY Projects are classified into Class A & Class B developments on the basis of the following attributes: Attributes Class A Developments Class B Developments Developer International/National/ Largely city based Reputation Regional Type of Private/ Partnership/ Public/ Private Ownership Individual Maintenance Professional Inexperienced Quality of Superior Moderate Construction (as per price segment) Security system, DG back-up, Club House, Swimming pool Resticted/Limited Amenities etc. depending on the price Amenities band and location of the property Typical size include 20 Typical size include 50 500 units 200 units (in each phase) Scale of (in each phase) depending on the depending on the Development location of the properties location of the propertyTerminologies of Supply, Availability, Absorption, Rental Yield Rateand Planned projects used in the report are provided below: Supply: Includes stock from developers in under-construction andplanned projects. Resale units are not considered in the supplycomputation.Total Availability: Includes unsold stock of completed, under-construction and planned projects available with the developer.Average Annual Absorption: Defined as the average number ofresidential units (from completed, under-construction and plannedprojects) absorbed/sold in a particular micro-location.Average Rental Yield Rate: Defined as the expected percentage ofrental income for the purchase price of the residential unit.Computed using the below formula:Rental Yield Rate = [Net Operating Income (NOI) 6 of a particularproperty/Capital Value of that property].Planned Projects: Includes stock of developments at pre-launchphase.6 NOI is the income derived after deducting operating expenses (insurance, building maintenance, property taxes) and Vacancy losses for a propertyBANGALORE: RESIDENTIAL MARKET REPORT 38 40. STRATEGIC ADVISORY GROUP 35 OUTLOOK ACRONYMS IT Information Technology ITeS Information Technology enabled Services ORR Outer Ring Road INR Indian Rupee CAGR Compound Annual Growth Rate SE South East NE North East MNC Multinational Corporation GDP Gross Domestic Product FDI Foreign Direct Investment BCC Bangalore City Corporation CITB City Improvement Trust Board BDA Bangalore Development Authority CDP City Development Plan BMRDA Bangalore Metropolitan Region Development Authority PSU Public Sector Undertaking JNNURM Jawaharlal Nehru National Urban Renewal Mission HSRL High Speed Rail Link HNI High Net Worth Individual NRI Non Resident Indian FSI Floor Space Index KIADB Karnataka Industrial Areas Development Board EPIP Export Promotion Industrial Park ITPB International Tech Park Bangalore BIAL Bangalore International Airport Limited SEZ Special Economic Zone NICE Nandi Infrastructure Corridor Enterprises Acknowledgment The Vestian Strategic Advisory team would like to take this opportunity to extend our gratitude towards all those who have helped us in our endeavor to produce this report. We would like to especially thank the developers in Bangalore who have extended their valuable support and market information which has helped us in ensuring authenticity of the report. We would alsolike to give a special mention to our Corporate Communications Team and Workplace Support Team members in particular Chandra Mohan Reddy and Manoj Joseph for their support.39 41. GLOBAL MANAGEMENT AUTHORS Gorakh Jhunjhunwala MRICS Shrinivas Rao MRICS Assistant Vice-President, CEO, Vestian Vestian Strategic Advisory GroupShrinivas serves as Chief Executive Officer for Asia Pacific. With 20 Gorakh heads Vestian Globals Strategic Advisory Group. With overyears of experience in working with global clients throughout 10 years of experience in Real Estate research and consultingIndia, he is well-versed in delivering solutions that work in Indias domain, Gorakh has led real estate focused consultingvery challenging workplace services markets. Amongst the assignments for leading multinational corporations, global andpioneers of professional workplace consulting services in India, he national developers and investment corporations across India andsuccessfully established and led operations of three multinational Asia Pacific region. His previous associations include UGL Equis andcorporations in India. He is widely recognized as a change leader Chandavarkar and Thacker Architects Private Limited. He is aand known for his keen insights into workplace services trends Fellow of Indian Institution of Valuers India. Gorakh received hisand innovative structuring services. Bachelors degree in Architecture from RV College of Engineering,

Bangalore and Masters of Technology from Indian Institute of Technology, Delhi. Dhara Dalal Michael Silver Manager, Chairman, Vestian Vestian Strategic Advisory GroupMichael serves as Chairman and is responsible for strategic As a part of the Strategic Advisory Group, Dhara contributes tooversight. He is a recognized leader in the field of real estate services, Property Market reports, research papers as well as clienthaving established and led the growth of a large occupier focused assignments. She has over 6 years of experience and has worked onservices corporation. In 2006, he received the Ernst and Young consultancy assignments across commercial, residential,Entrepreneur of the Year Award. He is also an active member of the industrial, hospitality and retail sectors. A few of the assignmentsYPO (Young Presidents Organization) and WPO (World Presidents executed by her include development feasibility studies, business location study, market research & assessment and opinion of value. She holds an Engineering Degree in Civil with M.Tech in Planning from CEPT University, Ahmedabad. Shailendra Chandrashekhar Manager, Vestian Strategic Advisory Group Shailendra contributes to property market reports, research papers as well as client assignments. He has over 6 years of experience in real estate and has worked on consultancy assignments across varied sectors like commercial, residential , hospitality, retail and industrial. Shailendra is an Engineer and holds an MBA from Ohio University, USA. BANGALORE: RESIDENTIAL MARKET REPORT 40 42. ABOUT US41 43. CONTACTS India Management Offices Shrinivas Rao MRICS INDIA (Corporate Office) CEO - Asia Pacific First Floor, West Wing, DuParc Trinty, +91 80 40620102 #17, MG Road, Bangalore 560 001 Strategic Advisory Group Telephone: +91 80 4062 0100 Gorakh Jhunjhunwala MRICS Mumbai AVP - Strategic Advisory Group Acme Plaza Unit No.501, 5th floor Andheri Kurla Road +91 80 40620100 Andheri (East) Mumbai - 400059 Transaction Advisory Chennai Anthony Ravindran Suite No # 403 DMD Transaction Advisory MLS Business Center Bangalore Operations Kuppu Arcade 4, Venkatanarayana Road +91 80 40620100 T. Nagar, Chennai600017 T: +91 44 39159351/ 66659351 Sanjay Purbey AVP - Business Development Hyderabad 2nd Floor, N.N.R Arcade, +91 80 40620100 Plot 13, Road No. 10, Banjara Hills Hyderabad - 500034 Project Services Telephone: +91 40 33782100 Praveen Singh Gurgaon Director - Project Services AmSoft Systems Pvt. Ltd. Unitech Trade Centre +91 40 33782100 Sector-43, Sushant Lok-1 (Near Huda City Metro Station) Gurgaon, Haryana 122002 Retail Business Solutions USA (Head Office) Vivek Nair 300 N. LaSalle Street VP & Business Head - Retail Suite 1850 Chicago, IL 60654 +91 80 40620100 Telephone: +1 312 920 0290 Operations CHINA (Regional Office) Unit 1207, No.546 Capt. Kunal Asirvadam Changning Road, VP - Operations Changning District, Shanghai 200 042 +91 80 40620100 Telephone: +86 21 3255 6366BANGALORE: RESIDENTIAL MARKET REPORT 42 44. W O R K P L A C E S E R V I C E S www.vestianglobal.comDisclaimer: This report contains information available to the public and has been relied upon by Vestian Workplace Services on the basis that it is accurate. Vestianaccepts no responsibility if this should prove not to be the case. No warranty or representation, expressed or implied is made to the accuracy or completeness ofthe information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions and withdrawal without notice.