KF Investment Advisory Report Nov-2012

INDIAS TOP RESIDENTIAL
DESTINATIONS TO INVEST IN
Investment Advisory Report November 2012
INVESTMENT
advisory REPORT
Indias Residential Destinations
This report identies the

top residential
INTRODUCTION
destinations in the
country from the
investment point of view
over the next ve
years (2013-2017)
Balancing return with the associated risk is the

focal point of any investment decision. Equity and
debt are considered to be the mainstream asset
classes. However, the tradeo between return
and risk in both these asset classes is strikingly
dierent. While equity as an asset class is
associated with high returns albeit with a greater
risk score as measured by volatility, a relatively
stable debt investment comes with a larger
compromise on returns.
Real estate, the third mainstream asset class,
oers the best combination of returns and risk.
From the perspective of return, real estate
investment in India has garnered superior returns
in comparison to other asset classes over a long
term. Further, an investment in residential
property is generally done with leverage in the

form of a housing mortgage. This leverage further
increases the potential for earning higher returns
since the initial equity contribution is a fraction of
the property value.
From the perspective of risk, property investment
fares better because asset price generally
remains stable. It has been established that an
investment in real estate based on sound
research can seldom go wrong. In the sense that
in comparison to an asset class like equity which
is dependent on several factors related to the
underlying business like protability, leverage
and corporate governance, a real estate
investment is based on the underlying asset. A
sound research is inherently founded on deep
IMPORTANT TERMS USED IN THE REPORT

We have developed a
framework built on topdown approach in the
selection of the ve most
TERM
MEANING
Metropolitan region
The urban region as dened by the regional development authority
Zone
A Zone is a geographical division of the metropolitan region comprising of several

localities that possess similar characteristics in terms of access to employment hubs,
connectivity and demography. In most cases, the metropolitan region is divided into 4-5
zones that are labeled as Central, South, North, West and East
Destination
Destination is the most promising residential locality from the perspective of investment
Benchmark location
Identied based on the nearest price contour, a benchmark location is an established

residential locality that has saturated in terms of real estate growth and infrastructure
development and is considered as the most sought after residential market within the
zone. With respect to price forecasting for the destination, a benchmark location, preferably
in the same zone, becomes the reference point
Property price
contour map
This map splits the geography of a city in accordance with the prevailing residential
property price. Residential markets falling within a contour line command price identied
by such line
Investor Return
It is the IRR (Internal Rate of Return) for a typical investor in residential property
Assumptions for
calculating Investor
Return
Size of property: 1000 sq. ft.

Loan to Value ratio: 60%
Loan tenure: 20 years
Residential Property
Price (` per sq.ft.)
The price indicates the average capital value in the residential market of the destination
and benchmark locations
Hidden Gem
Locations where we expect the real estate drivers to gather momentum beyond year 2017
promising cities and zones

within them and bottomup approach in the
selection of top
investment destinations
Investment horizon: 5 years

Mortgage rate: 10.5% pa
INVESTMENT
advisory REPORT
From the perspective of

risk, property investment
fares better because asset
price generally remains
stable
In most cases, investment

in real estate is fraught
with decisions based on
gut feeling and tips which
result in pOor
investments. Hence, an
investor has to clearly
delineate a real estate
investment from
speculation
understanding of the property market along with

the study of factors that drive it.
Real estate is an asset class where an educated
investor can mitigate the risk and enjoy the
associated superior returns at the same time.
Coupled with the other mainstream asset classes,
this investment vehicle can make for an optimally
diversied portfolio. In most cases, investment in
real estate is fraught with decisions based on gut
feeling and tips which result in poor
investments. Hence, an investor has to clearly
delineate a real estate investment from
speculation.
The global nancial crisis of 2008-09 has brought
about a striking change in the attitude of
investors. This change towards expectation on
investment returns, growth and risk does not
single out any one asset class but applies to most
of the assets whether it is equity, debt,
commodity or real estate. Amidst this changed
scenario it is evident that an advice on
investment in any asset class cannot be generic.
Real estate as an asset class is the foremost
example that will witness the challenge thrown by
this tenet particularly in this tough economic
scenario. Even within real estate as an asset
class, the judgment on investment outlook on
commercial real estate and residential real estate
cannot be a unied one. The dominant factors
that drive investment returns for both these are
diverse to a great extent. Hence, the investment
opinion should take into account each of these
factors.
Although the prominence of real estate as an

asset class is increasing, the investment research
in the subject lags much behind in comparison to
other asset classes. With this report, we will make
an incipient foray into the subject by identifying
the top residential destinations in the country
from the investment point of view for the next ve
years (2013-2017). The destinations are
residential markets that we expect will
outperform in terms of the investor returns on
account of the appreciation in property prices. We
have developed a framework built on top-down
approach in the selection of the ve most
promising cities and zones within them and
bottom-up approach in the selection of top
investment destinations. Since real estate
activities are not restricted to city limits, we have
considered the entire metropolitan region in our
analysis. Our understanding of the local property
market and experience in dealing with
parameters that determine an urban centres
growth equips us to develop the framework for
this pioneering report.
While selection of the top residential investment
destinations remains the core of this report, we
also present ve locations, where we expect the
real estate drivers to gather momentum albeit
during the elongated time horizon beyond 2017.
These locations have been identied as hidden
gems in the report.
INVESTMENT
advisory REPORT
Regional growth within a
APPROACH FOR IDENTIFICATION OF THE TOP RESIDENTIAL

INVESTMENT DESTINATIONS
city is anything but even

and the direction of such
growth is a critical
factor in determining the
fate of a particular
residential property
India
Urban centres
Top 100 cities

Top 100 cities based on population
Top 5 cities
Business activity:
Banking penetration, hotel room demand, air passenger traffic
Infrastructure development:
Current and proposed infrastructure expenditure
Zone
Employment:
Occupied office space, industrial activity
Social & physical infrastructure:
Analysis of development plan of respective
authorities and extensive field survey
Destination
Connectivity with
important locations
Access to social
infrastructure
Special factors:
Proximity to
premium office
space, land
availability,
lifestyle shift,
planned
development
INVESTMENT
advisory REPORT
From the growth and

investment perspective,
zones that have high
METHODOLOGY &
APPROACH
concentration of business
activity at present and
projections of meaningful
increment in future will
Selection of top cities in the country
have a comparative
advantage over others
that have saturated on
this
The top residential destinations have been picked

from the universe of all urban centres in the
country. In this multi stage selection, each
parameter was chosen in a manner that captures
the cause and eect relationship of such
parameters with the growth of residential
development in the city.
The population base of a city is a crucial indicator
of the potential of its housing market. In the rst
stage of selection, top 100 cities were identied
based on their population. The extent of business
activity and thrust on infrastructure development
are critical factors aecting the housing market
and accordingly these selected 100 cities were
studied. Banking penetration, hotel room
demand and air passenger trac were
considered as surrogates for business activities
and current and proposed infrastructure
expenditures were taken as proxies for

infrastructure development. The cities were
ranked on these individual parameters and based
on the average ranking Mumbai, Delhi,
Bengaluru, Chennai and Pune emerged as the top
ve cities.
With the fundamental prerequisite already in
place, these ve cities are well prepared to
participate in the growth trajectory for the
foreseeable future. While a framework was
prepared and top cities were identied, our
endeavour was even more specic. We have
striven to provide a crystal clear view on
investment destinations for a typical investor in a
residential property. This objective meant
identication of residential destinations that
would outperform others on the investment return
scale.
Selection of zone within a city

Regional growth within a city is anything but even
and the direction of such growth is a critical
factor in determining the fate of a particular
residential property. We therefore, split each city
into 4-5 zones to capture the quantum and
direction of such growth. This spilt into dierent
zones is based on the homogeneity of
characteristics with respect to access to
employment centres, social and physical
infrastructure and demography.
The selection of a preferred zone depends on the
perspective of such selection, which diers
depending on the purpose of purchasing property
which is either end-use or investment. From the
growth and investment perspective, zones that
have high concentration of business activity at
present and projections of meaningful increment
in future will have a comparative advantage over
others that have saturated on this. Growth of
business activity will create abundant
employment opportunities which in turn will lead
to a rise in inward migration and high demand for
residential property in these zones. Hence, we
identied the driver industries in each zone and
assessed the impact of their business activity on
the kind of employment generated by such

industry. We have captured the extent of
employment generation by measuring the
quantum of occupied oce space at present and
for the next ve years.
A regression model capturing the impact of
change in revenue of driver industry on change in
occupied oce space was developed. Revenue
projections for rst two years were based on the
revenue guidance by the respective industry
associations. Projections for the remaining three
years were based on the moving average trend of
the preceding ve years. Also, the upcoming
supply of oce space in next ve years in all the
zones was analysed to understand the balance
between the incremental employment and
upcoming oce space. Thus a crystal clear view
on employment potential in a particular zone has
been provided. The service sector has emerged as
a driving force in most of the cases with the
Information Technology and Information
Technology enabled Services (IT/ITeS) industry
emerging as a dominant employment driver.
Besides the quantum of employment generation
in the driver industry, the nature of jobs in
INVESTMENT
advisory REPORT
The service sector has

emerged as a driving force
in most of the cases with
the Information
Technology and
Information Technology
enabled Services (IT/ITeS)
industry emerging as a
dominant employment
driver
accordance with its position in the value chain in

the industry was taken as a dierentiating
element. For instance, employment in software
development within the IT/ITeS industry has a
dierent impact on the income prole of
employees in comparison to that in the Business
Process Outsourcing (BPO) role. This dierence in
income prole will impact aordability in a
diverse manner.
Besides employment, the other important factor
from the growth and investment perspective is
infrastructure development. Regional
development plans and eld visits to the zones
equipped us to assess the scope of infrastructure
development that will have an impact on

residential markets within a zone. We assessed
the impact of existing and upcoming physical
infrastructure like road, rail and airport projects
on the residential markets of each zone. Presence
of social infrastructure comprising education,
healthcare and recreation was also reviewed.
We selected 1-2 zones having the most promising
future on account of the growth in the quantum of
occupied oce space and incremental
infrastructure development. Over the foreseeable
future, these preferred zones will be the biggest
beneciaries because they fall in the direction of
movement of employment and infrastructure.
REAL ESTATE DRIVERS

Business activity
Besides the quantum of
Infrastructure
Commercial Oce Space
Industrial
Physical
Social
IT Sector
Manufacturing
Connectivity
Education & Healthcare
Basic utilities: Water & Power
Entertainment
Non IT Sector
employment generation in
the driver industry, the
nature of jobs in
accordance with its
position in the value chain
in the industry was taken
as a dierentiating
element
Selection of Destination
within zone
All the residential markets within the preferred
zone will benet on account of the growth in
employment opportunities and infrastructure
development. However, a few of these will have a
comparative advantage over others. A bottom-up
approach was adopted to analyse the existing
and proposed connectivity and social and
physical infrastructure facilities. The approach
was modelled based on our eld visits to each of
the residential markets in the preferred zone and
discussions with various stakeholders. This
primary survey coupled with our real estate
expertise helped us to arrive at the best
destinations from the perspective of investment.
The destinations have been analysed vis--vis a
benchmark location which is an established
residential locality that has attained a relatively
higher saturation level in terms of real estate
growth and infrastructure development and is
considered to be one of the most sought after
residential markets within the zone. The
benchmark location for each destination has

been identied based on the nearest price
contour. With respect to price forecasting for a
destination, a benchmark location, preferably in
the same zone, becomes the reference point.
As mentioned earlier, our analytical focus was
primarily to understand the state of the subject
markets connectivity with important locations
and social and physical infrastructure facilities
available currently and also in the foreseeable
future. However, in certain destinations there
were variations with respect to factors impacting
future price movements like:
Proximity to premium oce markets: Wadala,
one of the selected destinations in Mumbai,
will benet due to its connectivity with the
premium business district of the Bandra Kurla
Complex (BKC).
Limited land availability: Limited land
availability will limit the scope of new
.
.
INVESTMENT
advisory REPORT
Over the foreseeable

future, the preferred
zones will be the biggest
beneciaries because they

fall in the direction of
movement of employment
and infrastructure
continuing with our

intention of undertaking a
thread bare analysis and
providing an unequivocal
investment view, we have
quantied the capital
appreciation and the
resultant investor
returns for investment in
these destinations
construction and put an upward pressure on

property prices in destinations like Chembur
in Mumbai.
Lifestyle shift: Destinations like KR Puram in
Bengaluru possess the potential to provide a
lifestyle shift, which is possible generally in
projects developed on large land parcels that
facilitate high rise premium developments
with plush amenities.
Planned development: Lack of social
infrastructure remains a concern in some
destinations as of now. However, on account
of being in the planned development region,
education, healthcare and recreation facilities
will eventually come up in destinations like
Ulwe in Mumbai.
While dynamics of a residential market with

respect to the demand-supply scenario were
considered to understand its depth, the impact of
factors like quality of projects, premium or
aordable category, on property price was also
assessed. It is of paramount importance to
assess all these factors in comparison to the
benchmark locality and also other localities
within the zone. Further, these factors have to be
viewed in the context of the prevailing property
price. Destinations chosen are denitely the ones
that would outperform other locations on the
investment return scale. However, continuing
with our intention of undertaking a thread bare
analysis and providing an unequivocal
investment view, we have quantied the capital
appreciation and the resultant investor returns for
investment in these destinations.
As mentioned earlier, to forecast the price
movement of a destination, we have considered
the price of a benchmark location as the
reference point. The assumption is that the
destination price will grow at a faster pace (as
compared to the benchmark location price)
because of its relatively higher level of increasing
developmental activities. As a result of this, the
current price discount of the destination will
reduce, making price convergence imminent in
the future.
In the rst stage, we have forecasted the price of
a benchmark location. Empirical evidence
indicates that price variation of established
residential markets is signicantly explained by
the changes in economic activities. In line with
this, we have conducted iterations to identify the
explanatory variables that strongly inuenced
property price movement in the benchmark
locations. Indias economic growth has been
identied as the most signicant factor
explaining the price movements. Regression
equations have been estimated for each of the
identied benchmark locations and price has
been forecasted till 2017.
TOP INVESTMENT
DESTINATIONS RANKED IN
ORDER OF INVESTOR RETURN
DURING THE NEXT 5 YEARS
Investor returns per annum
#4 Noida
Extension
#3 Chembur
22.9%
25.5%
22.3%
#1 Ulwe
#2 Wadala
27.0%
29.0%
#5 Dwarka
Expressway
#8 Ravet
#7 Hinjewadi
#6 Medavakkam
21.2%
20.6%
20.1%
#9 Tathawade
20.0%
#10 Hebbal
#11 Pallikarnai
#12 Wakad
#13 KR Puram
18.6%
18.7%
19.1%
19.3%
In the second stage, the price discount of a

destination has been forecasted for the next ve
years. In order to achieve this, we studied the
impact of dierent factors on prices of the
benchmark location over the last decade. These
factors include:
Incremental employment generation in the
zone.
New infrastructure projects.
Reduction in time to commute between the
benchmark location and important places in
the zone.
.
.
.
Our analysis shows that the occurrence of one of

the above mentioned factors or a combination of
them accelerated the growth of residential
property prices in a benchmark location before it
stabilized and emerged as a relatively developed
market. Assuming that the destination will have a
INVESTMENT
advisory REPORT
REGION-WISE TOP INVESTMENT DESTINATIONS FOR NEXT 5 YEARS

Empirical evidence
indicates that price
Forecasted Price Appreciation in Percentage
variation of established
residential markets is
NORTH
signicantly explained by
the changes in economic
activities
#1 Noida Extension
108%
#7 Wakad
91%
97%
#6 Ravet
100%
98%
#5 Tathawade
#4 Hinjewadi
133%
125%
#3 Chembur
#2 Wadala
#2 Dwarka Expressway
EAST
WEST
#1 Ulwe
145%
NCR
Mumbai
111%
Pune
Bangalore
#2 Hebbal
#4 KR Puram
94%
91%
#1 Medavakkam
Chennai
#3 Pallikarnai
103%
93%
SOUTH
similar impact of incremental employment
generation and new infrastructure projects, the
property price in the destination has been
forecasted by applying an estimated discount
factor on the future price movements of the
benchmark location.
Our research indicates that aordability will keep
a resistance on price movement in many
destinations. Hence, we have created an income
pyramid of the employees in the driver industry.
This pyramid is a distribution of all the employees
according to their income. Thus, a ceiling was
applied to our destination price forecast as per
the change in this pyramid for the forecast
horizon.
Additionally, in cases where land availability is

not a concern, price growth will not breach the
aordability threshold of the target consumer
group. As a result of this factor some destinations
did not qualify for the projected price growth and
were dropped from the top destinations list.
For a typical investor in residential property what
matters is the eective return resulting from the
leverage provided through the housing loan. The
same has been calculated and labelled as
Investor Return arising out of investment in
under construction residential property, in these
top destinations over a period of the next ve
years. Property specication and investment size
available at a destination along with select
residential projects have also been provided in
the report.
INVESTMENT
advisory REPORT
in cases where land
Risk factors for our outlook
availability is not a
concern, price growth
will not breach the
aordability threshold
of the target consumer
group
Our forecast for occupied oce space relies

largely on the service sector led by the IT/ITeS
industry. The sectors revenue growth during the
next ve years will have an impact on the
employment, which is one of the biggest drivers
of real estate. For the IT/ITeS industry, the
revenue growth estimates for the initial two years
have been taken from the industry association
and for the remaining three years they have been
taken as the preceding ve year moving average
growth rate between 10-12%.
While the Indian IT/ITeS industry is
interconnected with the global economy, reputed
research studies have highlighted the
interlinkage between the domestic manufacturing
sector and this industry. As a result, the weak
global economy and a slowdown in the domestic
manufacturing sector will have a direct impact on
this industry. Our analysis puts a great emphasis
on the fate of the IT/ITeS industry because of its
emergence as a signicant employment provider

in three of the top ve cities.
The BFSI industry has a meaningful role in the
employment trend in cities like Mumbai and
Delhi. We have considered a revenue growth rate
of 17-21% based on the preceding ve year
moving average growth rate for this industry.
The employment generated by these industries
has a signicant impact on our forecast for
occupied oce space. Hence, any major
deviation in their revenue growth will have an
adverse impact on our forecast for occupied oce
space and therefore the fate of the respective
destination.
Additionally, in several cases, the fate of the
destinations is linked to the delivery of
infrastructure projects, which makes our analysis
vulnerable to any signicant deviation from the
progress timeline of such projects.
KEY takeaways
. With property options ranging from
.
.
.
.
`3,200/sq.ft. to `15,000/sq.ft. and investor

returns in the range of 18.6% - 29% pa
residential real estate will emerge as a
promising asset class for the next ve years.
With seven destinations, the western region
has the highest number of promising
residential investment options.
The top three investment destinations, with
investor returns in excess of 25% pa, are from
Mumbai.
Only Mumbai ranks ahead of the top
investment destinations of the NCR, the
biggest residential market in the country.
Enhanced connectivity and the proposition of
the diplomatic enclave will signicantly benet
the Dwarka Expressway, placing it in high
ranks on the investment return scale.
. The IT/ITeS industry is the driving force behind

the growth in most of the destinations.
. With four investment destinations, Pune has
.
.
.
the maximum number of promising residential

property options.
IT/ITeS, Automobile and Engineering sectors
are the primary employment drivers in Pune
The destinations in Chennai will immensely
benet from the growth of the IT/ITeS and
Automobile industries in Tamil Nadu during the
next ve years.
IT/ITeS and Bio-technology sectors will be the
driving forces behind the growth of
destinations in Bengaluru.
INVESTMENT
advisory REPORT
BENGALURU
Bengaluru (also known as Bangalore), the capital of Karnataka is located

in the south-eastern part of the state. The city is located at an
altitude of 950m. above the sea level, thereby making its climate very
serene. Bengaluru is the third most populous city of India with a very diverse
demography. It is also known as the Garden City of India. It houses the
largest number of Information Technology (IT) and Information Technology
Enabled Services (ITeS) companies in India for which it earned the
sobriquet of the Silicon Valley. It also houses numerous public sector
companies including defence, aerospace and bio-technology.
Bengaluru urban agglomeration is known as Bengaluru Metropolitan
Region (BMR) comprising Bengaluru urban district, Bengaluru rural district
and Ramanagara district. The Bruhat Bengaluru Mahanagara Palike
(BBMP) is in charge of the civic administration of the city. The corporation
is spread over an area of 741 sq. km. Bangalore Metropolitan Region
Development Authority (BMRDA), an autonomous body created by the
Government of Karnataka is the nodal agency looking after the overall
development of the BMR. During the last two decades the population
growth was phenomenal in the BMR. It rose at an annual rate of 3.9%
during 2001-2011, primarily due to a huge inux of IT/ITeS employees.
BENGALURU METROPOLITAN
REGION POPULATION
Population in Millions
1991
4.84
5.2%
Population
2001
6.54
3.1%
2011
9.59
3.9%
Average Annual Growth
Source: Census 2011, Knight Frank Research
INVESTMENT
advisory REPORT
BENGALURU MAP
Major Roads
Railway Line
Existing Metro
Under Construction
Proposed Metro
South Zone
West Zone
Central Zone
East Zone
North Zone
Price Contours (`/ sq.ft)
3500
CHIKKA
BOMMASANDRA
Bangalore International
Exhibition Centre
Nagasandra
Nagawara
6000
15000
Whiteeld
B Halli Terminal
MG Road
VARTUR
Mysore
Road
Kengri
Puttenahalli
Gottigere
Boomasandra
Anjanapura/NICE Junction
INVESTMENT
advisory REPORT
Bengaluru Metropolitan
Market Overview
Region (BMR) is spread over
741 sq. km.
The BMR market can be divided into ve broad

zones: Central, West, North, East and South.
9.59 mn.
population in the BMR, an
increase of
98%
last two decades
in the
ZONE
MAJOR RESIDENTIAL
DESTINATIONS
Central
MG Road, Vitthal Mallya Road,

Frazer Town, Lavelle Road,
Richmond Road, Langford Town
West
Malleswaram, Rajajinagar, Tumkur

Road, Vijayanagar, Yeshwanthpur
North
Banaswadi, Hebbal, Bellary Road,

Hennur, Yelahanka, Jakkur, HBR
Layout
East
Whiteeld, Old Airport Road, Old

Madras Road, KR Puram
South
Koramangala, Sarjapur Road, HSR

layout, Jayanagar, JP Nagar,
Bannerghatta Road, Kanakapura
Road
South Bengaluru, a locale which until the mid1990s housed a strong Kannada (native language of
Karnataka) speaking population now boasts of
being a cosmopolitan region. This was mainly on
account of a huge inux of population from all over
India. Electronic City located on Hosur Road in the
south emerged as the rst IT hub of Bengaluru in
1990. Many IT giants like Infosys, HCL
Technologies, HP, Wipro, Genpact and Siemens
have setup their campuses in this region. With the
setting up of these companies, the South
Bengaluru region became a preferred commercial
as well as residential destination. The availability of
land, strong infrastructure and presence of the
middle-income segment have contributed to the
development of this zone. The residential clusters
in proximity to the Electronic City like Sarjapur,
Koramangala, Jayanagar, BTM Layout,
Bannerghatta Road and Hosur Road have attracted
a large number of immigrants especially the IT
employees. Social infrastructure like the availability
of quality hospitals, prestigious educational
institutions and retail malls are some of the major
reasons behind residential demand in this part of
Bengaluru.
This region started losing its charm since 1998
when the Government of Karnataka announced the
new international airport at Devanahalli - a town
located in the north of Bengaluru. Major IT/ITeS
companies started acquiring land closer to the
airport in the north for their expansion. They
refrained from buying any new land in this region,
hampering the overall growth of the South
Bengaluru region. In this bargain North Bengaluru
emerged a better investment destination compared

to the south.
The new international airport at Devanahalli
commenced in 2008. By virtue of this, North
Bengaluru became one of the most sought after
destinations of Bengaluru. Numerous real estate
and infrastructure projects were announced to
enhance the connectivity between Bengaluru city
centre and the airport; this included High Speed
Rail Link (HSRL), monorail and Metro rail. Moreover,
to generate employment in this region, the
government in association with private companies
earmarked large investments; such as KIADB Park,
Airport Township - Aerotropolis, Information
Technology Investment Region (ITIR), Devanahalli
Business Park (DBP) and Global Finance District
(GFD). These also attracted a lot of institutional
buyers like real estate developers and
hoteliers.This region is on the cusp of becoming the
new commercial business district (CBD) of
Bengaluru. Hence it is worthwhile to explore this
region with respect to the real estate investment.
Major micro-markets covered under this zone are
Hebbal, Devanahalli, Yelahanka and Hennur.
Before 1990, the eastern zone was home only to
some of the reputed heavy manufacturing
industries like Hindustan Aeronautics Limited
(HAL), BEML and ITI that were instrumental in the
growth of this region. With the dawn of the IT sector
some of these industries have gradually turned into
tech-parks. Proximity to the Outer Ring Road (ORR)
coupled with the availability of graded oce space
attracted major IT/ITeS companies in the eastern
zone. This fuelled the expansion of commercial and
residential development in this region.
Consequently, Whiteeld, CV Raman Nagar, Brooke
Field, Old Madras Road, Indiranagar, KR Puram, Old
Airport Road, Mahadevapura, Hoodi Circle and Sai
Baba Ashram emerged as the preferred residential
destinations among the IT employees. Moreover,
RESIDENTIAL PROJECT LAUNCH

TREND IN BENGALURU
* Till September 2012
2007
2008
2009
2010
2011
2012*
54,075
31,733
31,236
20,608
Launches
24,741
14,439
Source: Knight Frank Research
INVESTMENT
advisory REPORT
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF BENGALURU
176,832
residential
units launched since 2007
2007 2008
in the BMR
2009
2010
2011
2012*
No. of Units
32%
25%
180,000
160,000
140,000
100,000
85,808
80,000
60,000
units
launched and 54,687 units
9%
120,000
11%
14%
5%
40,000
20,000
Stock
Cumulative Absorption
% of Unsold Units
absorbed during 2010 and

2011 in BMR
Old Madras Road, Whiteeld Road, ITPL and Varthur

Road emerged as a business district having many
tech-parks, SEZs, captive campuses and business
centres.
57% of underconstruction units are in

North and East Bengaluru
Pennya industrial estate

spread over
266 acres -
one of the largest

industrial areas in Asia
Central Bengaluru is the commercial and retail

heart of the city with various corporate oces
located in micro-markets like the MG Road, Vitthal
Mallya Road, Commissariat Street, Ulsoor and
Lavelle Road. Excellent connectivity with various
parts of the city, good physical and social
infrastructure along with the presence of organized
retail has ensured the highest property prices in
this part of the city. The prominent residential
micro-markets of this region include MG Road,
Langford Road, Richmond Town, Lalbagh Road,
Vitthal Mallya Road, Residency Road and Fraser
Town. Majority of the residential developments in
the central locations are bungalows and
independent residential units, however some
pockets like Richmond Town, Richmond Road,
Malleshwaram Pipeline Road and MG Road are
witnessing growth in multi-storey high-rise
constructions as well.
Primarily an industrial hub, West Bengaluru houses
one of the largest industrial areas of Asia Peenya
Industrial Area. There are huge setups of several
renowned engineering, transformers, motors and
generator companies here. Being an industrial hub,
this region was not caught in the IT/ITeS wave of
the mid-1990s, that transformed South and East
Bengaluru as one of the most sought after
residential markets. However, this region gained a
lot of traction with the announcement of the
upcoming infrastructure projects viz. elevated
expressway, metro and the road connectivity along
the Tumkur Road. Micro-markets such as
Malleswaram, Yeshwantpur, Rajajinagar, BEML
layout, Mysore Road, Nagarbhavi,
Basaveshwarnagar, Tumkur Road and Jalhalli West
received the necessary impetus for growth.
Growth of the IT/ITeS sector along with the setting
up of bio-technology units and other large national
and multinational manufacturing units have
changed the dynamics of Bengaluru real estate

market. Apart from generating thousands of new
jobs for the local residents, Bengaluru has been
able to attract a large pool of migrants into these
sectors from across the country. This has enabled
the real estate market to grow at a tremendous rate
in the last ve years especially the residential
segment that witnessed the launch of over 176,832
units since 2007.
Bengaluru residential market witnessed the launch
of 85,808 units in the last two years (i.e. 2010 and
2011) accounting for almost 49% of the total units
launched since 2007. During the same period
54,687 units were absorbed in the Bengaluru
residential market. South and East Bengaluru
witnessed a major chunk of launches and
absorption during this period mainly on account of
their proximity to the IT hub of Electronic City and
Whiteeld Road. Over the period this region has
emerged as a self-sustaining micro-market
attracting many IT employees.
ZONE-WISE SPLIT OF UNDER

CONSTRUCTION UNITS
30%
27%
42%
East
North
South
INVESTMENT
advisory REPORT
62
km. Outer Ring Road
Real Estate Drivers
connects all the major IT

hubs from North to South
Employment Indicators
Infrastructure Development
Service Sector
Manufacturing Sector
Rail Network
Road Network
IT Sector
Biotech Sector
Bangalore Metro Corridor I & II
Pheripheral Ring Road
Monorail Corridor
Elevated Road / Expressway
High Speed Rail Link
EXISTING ARTERIAL ROAD NETWORK
ROAD NETWORK
DISTANCE
OBSERVATIONS
Outer Ring Road (ORR)
62 km.
ORR provides connectivity with all the major highways around the
city. Passing across the major suburbs viz. Hebbal - KR Puram Marathahalli - Sarjapur Rd. - Silk Board Junction
Nandi Infrastructure Corridor

Enterprises (NICE)
Ring Road
42 km.
Long peripheral road, connecting Jalahalli in the north with the

Electronic City on Hosur Road in the South. The corridor connects
Mumbai and Chennai through NH-4 in the western region and NH7 in the southern region respectively. Initially a four-lane structure
with provision for expansion upto six-lane. NICE Ring Road has
enabled trac from Mumbai to move directly to Chennai without
crossing downtown Bengaluru
Hosur Road (NH7)
40 km.
A four to eight-lane national highway (Part of NH7) connecting

Bengaluru city with Hosur, a town in Tamil Nadu. The Hosur Road
passes via the Electronic City one of the largest IT industrial parks
of Bengaluru
Bengaluru Elevated Toll-way
10 km.
A 10 km. long elevated and tolled expressway connecting

Bomanahalli to Electronic City
Metro rail operational

between Byappanahalli
and MG Road since Oct 2011
EXISTING SUBURBAN RAIL NETWORK

METRO TRAIN NETWORK
DISTANCE
OBSERVATIONS
Metro Train Network

Phase I, Reach I
6.7 km.
Reach I, a 6.7 km. part of the East-West corridor, connecting

Byappanahalli with MG Road is operational since October 2011
INVESTMENT
advisory REPORT
UPCOMING ARTERIAL ROAD NETWORK

A
33
km. High Speed Rail
Link proposed - will

operate between Cubbon
Road and Bengaluru
International Airport
116
CONNECTIVITY & LENGTH
OBSERVATIONS
CURRENT
STATUS
EXPECTED
COMPLETION
Road widening from Hebbal

to Bengaluru International Airport
20 km.
A six-lane elevated road over the

existing road connecting with the
international airport is under
construction. The elevated stretch that
starts from Kodigehalli gate will be a
six-lane highway extending over 4 km.
The project will have a series of seven
yovers from Hebbal to the Trumpet
Junction near the airport
Under
Construction
2013-14
High Speed Rail Link (HSRL)

33 km.
A 33 km. HSRL has been proposed,

that will connect the city centre with
the airport. The HSRL will operate
between Cubbon Road and Bengaluru
International Airport with two halts in
between, one at Hebbal and another
at Yelahanka.
Five
consortiums
shortlisted
Post 2016
Monorail Project
41 km.
Bengaluru Air Rail Link Ltd. (BARL) has

proposed 31 km. monorail from JP
Nagar (south) to Hebbal (north) and
10 km. between Peripheral Ring Road
(PRR) and Magadi Road. This project
will function as a feeder service to metro
rail as well as the international airport
Proposed
Post 2015
Peripheral Ring Road (PRR)

116 km.
A 116 km. PRR has been proposed, it

will connect the entire peripheral
arterial road linking all the major
highways and the district roads. Major
connecting area would be Hosur Road
to Tumkur Road via KR Puram, Bellary
Road, Old Madras Road and Sarjapur
Road. The PRR is expected to ease the
congestion on the ORR
Pre-feasibility
stage
Post 2016
Bengaluru Metro Rail Phase I

42 km.
a) A 24 km. North-South (NS) metro

corridor has been proposed, it will
connect Hesaraghatta circle (in north)
with Puttenahalli (in south)
Under
construction
2014-15
In-principle
approval
received from
the Govt. of
Karnataka.
Awaiting
approval from
the Urban
Development
Department
Ministry
Beyond 2016
km. Peripheral Ring
Road proposed connecting Hosur Road to

Tumkur Road via KR Puram,
Bellary Road, Old Madras
Road and Sarjapur Road
b) An 18 km. East-West (EW) metro

corridor has been proposed, it will
connect Byappanahalli with Mysore
Road (Reach I, a 6.7 km. part of the EW
corridor, connecting Byappanahalli
with MG Road is operational since
October 2011.)
Bengaluru Metro Rail Phase 2
72 km.
a) Phase II envisages extension of the

Metro Phase I, on the NS corridor. To
the north it will be extended upto
Bengaluru International Exhibition
Centre (BIEC) and to the south it will be
extended upto NICE Junction
b) EW corridor is planned to be
extended upto Whiteeld to the east
and Kengeri to the west.
c) Further, two new lines have been
planned in Phase II, one connecting
INVESTMENT
advisory REPORT

Over
2,000 IT & ITeS
companies present in
CONNECTIVITY & LENGTH
OBSERVATIONS
CURRENT
STATUS
EXPECTED
COMPLETION
Bengaluru including more

than 100 Fortune-500
Rashtreeya Vidyalaya (RV) Road with

Bommasandra in the South,
Electronics City on the Hosur road with
the city centre
companies
d) Another line will be parallel to the

NS Corridor of Phase I, running
between Nagawara in the north and
Gottigere in the South. It will have two
interchange stations, one at MG Road
and another at Jayadeva hospital
Bengaluru generates
software exports worth
`700 bn.
650,000 IT
Elevated corridor from Central Silk

Board Junction to Jayamahal Road
15 km.
A 15 km. elevated corridor connecting

Central Silk Board Junction to
Jayamahal Road is envisaged to ease
the trac ow between North and
South Bengaluru. This will also
facilitate in reaching the new
international airport in the North.
Pre-Feasibility
stage
Beyond 2015
Construction of elevated corridor

between Jnanabharathi and
Old Airport Road
28 km.
A 28 km. West-East elevated corridor

Pre-Feasibility
along the Ring Road connecting
stage
Tumkur (Jnanabharathi) with Old
Airport Road. The corridor will pass
through Sirsi Circle, Town Hall, Hudson
Circle, Vellara junction and Old Airport
Road. The proposed corridor is
expected to ease the East-West city
trac ow
Beyond 2014
Bengaluru - Mysore Expressway

140 km.
A six-lane expressway connecting

Bengaluru with Mysore is under
construction. Only peripheral part of
56 km. has been completed till date.
Beyond 2017
professionals directly
employed in Bengaluru
Land
acquisitions
IT/ITeS and Bio-technology

sector are the driving
factors for Bengaluru's
growth
Employment Indicators in Bengaluru

Bengaluru is the IT and Bio-technology capital of
India. It also houses numerous Government
promoted heavy industries including defence
organizations, scientic establishments,
aerospace and telecommunication companies. It
also has renowned Indian educational institutions
oering a plethora of job opportunities.
However, Bengalurus economy is primarily
driven by the IT/ITeS sector and bio-technology
sector.
IT/ITeS SECTOR
Over 2,000 IT/ITeS companies, including more
than 100 Fortune-500 companies have
established their operations in Bengaluru. These
companies in all, generate software exports worth
`700bn. and directly employ over 650,000
professionals. Prominent Fortune-500 companies

operational in Bengaluru are IBM, Dell, HP,
CISCO, Sun Microsystems, Microsoft, Toyota, ING,
Tesco, Citigroup, JP Morgan Chase, Goldman
Sachs, Bosch and Tyco. Prominent Indian IT &
ITeS companies like TCS, Infosys, Wipro and
Mahindra Satyam have major operations in the
city.
Bengalurus IT/ITeS sector accounts for almost
one-third of Indias IT/ITeS revenue and almost
half of the Indian Bio-Technology companies are
located in Bengaluru. These sectors play a very
vital role in the growth of commercial and
residential real estate in Bengaluru.
IT/ITeS companies have been predominantly
concentrated in South, South East Bengaluru and
the Outer Ring Road (ORR) stretch from Hebbal to
INVESTMENT
advisory REPORT
IT/ITeS sector constitutes
70% of the total oce

space in Bengaluru
Currently the total oce

space stock in Bengaluru
is 92 mn. sq.ft. of which
79.80 mn. sq.ft. is occupied
Silk Board junction. This region houses many

renowned tech-parks, IT/ITeS SEZs and captive
campuses of Fortune-500 IT companies. Micromarkets along Whiteeld, Electronic City, ORR,
Sarjapur and Bannerghatta Road have developed
into self-sustaining hubs. East Bengaluru has
over 37 mn. sq.ft. of oce space. Apart from the
large campuses of IT/ITeS companies such as
Dell, TCS, L&T Infotech, GE, HP and iGate, there
are numerous standalone commercial oce
buildings like Brigade Metropolis, Prestige
Shantiniketan, Embassy Crest, ITPB, GVR Tech
Park, SJR iPark and Salarpuria Tech Park across
the IT hub of Whiteeld in East Bengaluru.
Electronic City Industrial Park located in the
southern region is spread over 330 acres having
over 45 mn. sq ft. of oce space including the
captive oces. It is divided into three phases, of
which one is completely dedicated to the biotechnology sector, while the other two predominantly house IT/ITeS sector companies.
Major companies having oces here are Infosys,
Wipro, HCL, Genpact, Siemens, TCS and Mahindra
Satyam. Non-captive commercial oce spaces
include SJR Equinox, Harita IT Park, Global Tech
Park, SVR Fortunae and Hiranandani Upscale.
OFFICE SPACE BREAK-UP
70%
30%
BENGALURU OFFICE
SPACE DYNAMICS
160
140
120
100
80
60
mn. direct and indirect
JoBS TO BE GENERATED BY
2020 IN BENGALURU
The ORR stretch between Hebbal to Silk Board

Junction acquired importance with the
commencement of the Bengaluru International
Airport in 2008 in Devanahalli. This stretch serves
as a main junction between the airport and the
established IT hub of Bengaluru i.e. Electronic
City and Whiteeld. This stretch has large multitenanted IT parks. Major IT parks include Manyata
Embassy Business Park, Salarpuria Supreme,
Cessna Business Park and Prestige Tech Park.
The countrys IT/ITeS sector grew at an annual
rate of 22.5% to `1,474bn. during 2004-2011 and
is estimated to reach `3,000bn. by 2017. As per
NASSCOM, the IT/ITeS sector has created
tremendous job opportunities, generating over 11
mn. direct and indirect jobs. It is
estimated that the sector would create
over 14 mn. by 2015 and close to 30 mn. jobs by
2030. Bengaluru forms one-third of the countrys
total IT/ITeS revenues. We expect Bengaluru to
continue its growth trajectory in-line with the
countrys IT/ITeS growth. Further, the Government
of Karnataka proposes to increase employment
opportunities in the software export eld to about
2 mn. by 2020 from 0.65 mn. at present.
With the strengthening of the global economy,
robust domestic fundamentals and easy
availability of skilled human capital the IT/ITeS
industry here is expected to grow signicantly in
the coming years.
40
20
before 2009 2010

2008
2011
2012 2013E 2014E 2015E 2016E 2017E
ZONE WISE DISTRIBUTION OF

OFFICE SPACE STOCK
12%
27%
11%
15%
36%
Central
West
South
East
North
INVESTMENT
advisory REPORT
USD
10
BIO-TECHNOLOGY SECTOR
bn. the size of
Indian Bio-technology
sector by 2015. Current size
USD 4 bn.
40% of the country's

bio-technology sector
contributed by Bengaluru
India is ranked among the top 12 biotechnology

destinations in the world and third largest in the
Asia-Pacic region. The Government of Karnataka
is committed to establishing a Biotech corridor
for the development of the biotech industry in
Karnataka. The corridor in Bengaluru shall extend
from the Indian Institute of Science to the
University of Agricultural Sciences. Karnataka has
a large number of biotech companies, such as
AstraZeneca India, Biocon India, Cadilla,
SmithKline Beecham and Wockhardt.
The Indian Bio-technology Sector is expected to
grow to USD 10 bn. by 2015 from USD 4 bn.
posted in scal 2010-11. Bengaluru has emerged
as a Biotech capital of India, accounting over
40% or USD 1.6 bn. of the countrys total
revenues. Of the 380 biotech rms across the
country, 52% or 198 are located in Karnataka and
50% or 191, are in Bengaluru owing to rich human
capital and cost advantage over peers overseas.
Currently the total oce space stock in Bengaluru
is about 92 mn. sq. ft. of which 80 mn. sq. ft. is
occupied, resulting in a vacancy level of 13%.

Bengaluru retained the top slot for the highest
oce space absorption in the country in FY 2012,
despite global uncertainties looming large on the
horizon. The citys oce market clocked
absorption of almost 12 mn. sq. ft. during FY 2012,
translating into an increase of 10% over the
absorption witnessed in FY 2011. The IT/ITeS
industry still remains the key demand driver for
oce space in Bengaluru. Going forward, we
expect another 50 mn. sq. ft. of new oce space
to be added to the existing inventory in the next
ve years, taking the total stock to 141 mn. sq. ft.
by the end of 2017.
The recent slowdown witnessed by the IT/ITeS
sector globally, is expected to impact the
incremental absorption of oce space in
Bengaluru in the ensuing years. However, a delay
in the delivery of new projects will lower the
vacancy levels to 12% by the end of 2017. We
have forecasted an incremental demand of 44-45
mn. sq. ft. over the next ve years taking the total
occupied space in the city to 124 mn. sq. ft. by the
end of 2017.
STATUTORY COSTS
AND MARKET NORMS
STATUTORY COSTS
380 biotech companies

in India - 50% alone in
Bengaluru
COST
DETAILS
Stamp duty
5% (On ready reckoner rate)
Registration
1% (upto a maximum of `30,000)
VAT
7% (on agreement value)
Service Tax (on underconstruction property)
MARKET NORMS
NORM
DETAILS
Time line for property registration
Any time until possession
Re-sale before possession
Allowed
Transfer charges payable to builder
`200-300 psf
Loading (as % of carpet)
33%
Remarks
Investor friendly market. Gains from lower Stamp Duty are taken back by
higher VAT rate. Eectively, taxes are higher in comparison to Mumbai
and Pune
INVESTMENT
advisory REPORT
NORTH BENGALURU MAP
Yelahanka Satellite Town
Major Roads
Proposed Metro
Airport
Railway Line
Benchmark location
HEBBAL
Top destination
Employment Hubs
EAST BENGALURU MAP
KR PURAM
Whiteeld
KR Puram
B Narayanapura
B Halli Terminal
Mahadevapura
Hudi
KIADB Export
Promotion Area
CV Raman Nagar
International Technology
Park Bangalore (ITPB)
EPIP Zone
MG Road
Brookeeld
WHITEFIELD
Major Roads
Existing Metro
Proposed Metro
Monorail
Proposed
Major Roads
Airport
Railway Line
Line
Railway
Benchmark location
location
Benchmark
Top destination
destination
Top
Employment Hubs
Hubs
Employment
INVESTMENT
advisory REPORT
bengaluru dominance in the

BPO/KPO sectors have won
it a place in the dictionary
as Bangalored meaning
Outsourced
South Bengaluru micromarkets lost its charm

post the commencement
of the Bengaluru
International Airport in
North Bengaluru
We anticipate North and

East Bengaluru to be the
biggest beneciaries of
the BIA and expect them to
emerge as the new Central
Business Districts (CBD) of
Bengaluru within the next
decade
PREFERRED
ZONES IN
BENGALURU
Bengaluru was a laid-back city till the mid-1990s
when the IT boom reshaped it into a major city of
India. Many large domestic IT companies as well
as the Fortune-500 companies set-up their oces
here giving a boost to the Bengaluru real estate
market. Today, Bengaluru has become the
software hub of India, commonly known as the
Silicon Valley of India. Its dominance in the KPO
(Knowledge Process Outsourcing) and BPO
(Business Process Outsourcing) sectors have won
it a place in the dictionary as Bangalored
meaning Outsourced. We believe Bengalurus
dominance in the IT/ITeS sector will continue in
the foreseeable future.
As per the fundamental economics of the real
estate sector, the price appreciation depends on
two factors - employment and infrastructure
development (connectivity). This phenomenon
has been witnessed in the South and South-East
regions of Bengaluru. In the mid-1990s, since the
growth of the IT/ITeS sector many large IT parks
and campuses have been set-up in the Electronic
City (south) and Whiteeld (south-east) region.
This attracted many software engineers to
Bengaluru consequently leading to demand for
residential real estate. Micro-markets such as
Bannerghatta Road, Kanakpura, Sarjapur Road, JP
Nagar, Jaya Nagar, Whiteeld, Varthur,
Mahadevapura, CV Raman Nagar, Uttarahalli, KR
Puram and Electronic City have emerged as
residential markets. However, South Bengaluru
destinations lost their charm post the
Airport (BIA) near Devanahalli in North Bengaluru.
As a natural phenomenon for the real estate
sector, all focus including government,
corporates and general public at large, has now
shifted northwards a new growth corridor for
real estate.
We expect North and East Bengaluru to be the
biggest beneciaries of the BIA and expect them
to emerge as the new Central Business Districts
(CBD) of Bengaluru within the next decade. This
can be further substantiated by the numerous
infrastructure projects undertaken by the
government such as High Speed Rail Link (HSRL),
Metro Lines, monorail and the Peripheral Ring
Road that are at various stages of construction.
On completion, these projects will enhance the
connectivity of the city centre with the BIA.
Availability of huge land parcels along the road

between the city centre and the BIA has attracted
many large corporates.
Residential end-users at large prefer residing in
Northern Bengaluru as against the south; this
was not the case 4-5 years back. The change in
preference was mainly on account of shifting of
the airport to the north near Devanahalli. We
expect the stretch from Hebbal to Yelahanka in
the north to gain large price appreciation in the
next ve years mainly on account of its proximity
to the airport, connectivity with the city centre
and upcoming social infrastructure.
East Bengaluru in itself is a well-developed and
self-sustaining zone. At its core, Whiteeld as a
micro-market has evolved over the years. It has
become one of the most preferred destinations
for the IT/ITeS employees, as it is close to the IT
corridor of Whiteeld and ITPB. It also has a welldeveloped social infrastructure (school, hospitals
etc.) and a well-organized retail market.
Moreover, this region will have smooth
accessibility to the airport with the proposed 116
km. Peripheral Ring Road (PRR). The PRR will link
Hosur Road with Tumkur Road via KR Puram,
Bellary Road, Old Madras Road and Sarjapur
Road. Hence markets like KR Puram, Whiteeld,
Budigere Cross and Old Madras Road will see
some good traction in the next 4-5 years.
Therefore, based on the above developments we
believe North and East Bengaluru regions will
witness good traction over the next ve years.
NORTH
BENGALURU
The focus of the GOK over the last decade has
clearly been North Bengaluru. By shifting the
Bengaluru International Airport (BIA) near
Devanahalli in the north thereby replacing old
HAL Bengaluru International Airport, GOK has
substantiated its intention in developing North
Bengaluru. Since the new airport is 40 km.
outside the city, GOK has also planned Mass
Transit Systems (MTS) like monorail, Metro-Line
and High Speed Rail Link (HSRL) to enable
travellers to reach the airport faster. Also,
commuter rail system has been planned to
connect Devanahalli with Yeshvantpur via
Yelahanka. Additionally, widening of the NH-7
upto BIA from the existing six-lane to eight-lane is
under process. This can sustain higher trac due
to airport expansion and expected real estate
developments on either side of the NH-7. Further,
INVESTMENT
advisory REPORT
`1,150 bn.
Investment earmarked for
North Bengaluru
4 mn. direct and

indirect employment to be
genereated over next 3
decade in North
Bengaluru
the GOK is also developing the Peripheral Ring

Road (PRR) as an eightlane expressway along
the periphery of Bengaluru for a total road length
of 116 km. that will connect all the periphery
regions to the airport. Availability of vast vacant
land parcels close to the airport and along the
road leading to the airport has enabled GOK to
plan projects worth `1,150bn., including
Devanahalli Business Park (DBP), Aero SEZ,
Information Technology Investment Region (ITIR),
Bio-Technology, Aerotropolis and many other
recreational developments.
Further, the GOK has also invited many
corporates to set-up their units/oces in North
Bengaluru. Many large companies such as HAL,
BEML, Infosys, Dynamatic Technologies Ltd, IFCI
and Tata Elxsi have signed an MoU with the GOK.
55 multinational IT companies including Infosys,
Wipro, TCS and Cognizant have evinced interest
in setting up their oces in the ITIR. Over 1.2 mn.
people are expected to get direct employment
from the ITIR and over 2.8 mn. indirect
employment. Employment due to the ITIR in itself
speaks about the growth of this region. These
developments are expected to completely change
North Bengaluru from an unexciting location to a
bustling self-sustaining city.
Growth of the residential market in this zone has
been primarily along the Outer Ring Road (ORR)
such as Hebbal, Sahakara Nagar, Dollars Colony,
RT Nagar, Banaswadi, Mahadevapura and
Nagwara. However, post commencement of the
BIA in 2008, the stretch from Hebbal to BIA is
42,329
witnessing residential developments. Proximity to

the airport and to the commercial hub of
Manayata Tech Park has made this pocket of
Bengaluru the preferred residential location by
the IT population.
As on September 2012, North Bengaluru has witnessed
a total of 42,329 residential units being launched
since 2007. Of this a total of 28,785 units have
been absorbed resulting in 32% remaining
unsold. Over the years, unsold units have risen
mainly on account of low pace of absorption due
to uncertain global markets. Announcement of
new projects has come down in the rst 9m
of 2012, as only 5,075 units have been launched
against the 13,355 units launched in 2011. The
excess supply from the previous years has had an
adverse impact on the unsold units percentage.

TREND IN NORTH BENGALURU
2007
2008
2009
2010
2011
2012*
13,355
7,269
7,069
5,608
5,075
3,953
Launches
units
launched and 28,785 units

absorbed since 2007 in
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF NORTH BENGALURU

2007 2008
2009
2010
2011
2012*
32%
27%
50,000
No. of Units
North Bengaluru
40,000
15%
14%
30,000
20,000
14%
12%
10,000
Stock
% of Unsold Units
INVESTMENT
advisory REPORT
ORR accounts for almost
35% of the total oce
Existing
Infrastructure
space of Bengaluru.
OUTER RING ROAD (ORR)

Outer Ring Road popularly referred to as the ORR
is a stretch connecting Hebbal in the North and
Silk Board Junction in the South. This 62 km.
stretch has been developed as an IT growth
corridor in the last ten years. The ORR stretch can
be further classied into four parts based on its
respective characteristics as a) Hebbal - KR Puram
b) KR Puram - Marathahalli c) Marathahalli
Sarjapur Road and d) Sarjapur Road Silk Board
Junction. Of these (a) and (b) form part of northeast Bengaluru and (c) and (d) form part of
south-east Bengaluru. The new growth corridor
for IT development opened up in Bengaluru only
in 2002 after the completion of the ORR. The ORR
now accounts for almost 35% of the total oce
space of Bengaluru. Proximity to the airport and
to the commercial hub such as Manyata Tech

Park, RMZ Ecospace, RMZ Ecozen, Salarpuria
Supreme, Cessna Business Park, Ferns Icon, and
Bagmane World Technology Centre has made this
pocket the most sought after destination. Growth
of the residential market in this zone has been
primarily along the ORR such as Hebbal,
Sahakara Nagar, KR Puram, Whiteeld, CV Raman
Nagar, Indiranagar, Marathahalli, Bellandur,
Varthur Road, Dollars Colony, RT Nagar,
Banaswadi, Mahadevapura and Nagwara. The
Doddaballapur Road, Hennur Road and Hebbal
areas that are connected with the international
airport road are now hotspots for property
development.The plan to make the Outer Ring
Road (ORR) a signal-free, seamless corridor will
have far-reaching implications on the growth
along its route.
Upcoming
Infrastructure
HEBBAL TO BIA ROAD
Hebbal to BIA road project
is expected to reduce the
travel time between Hebbal
to BIA from 45 minutes to
20-25 minutes
A 3.72 km. six-lane elevated road over the

existing road is under construction. The project
will have a series of seven yovers from Hebbal to
the Trumpet Junction near the airport. The
elevated road starts from the Kodigehalli gate
and connects to the international airport. This
project by the National Highway Authority of India
(NHAI) is at various stages of construction from
Hebbal to the Yelahanka railway-under-bridge. It
will also have yovers and underpasses. Once the
project is completed it will enhance connectivity
with the city centre and the drive to the airport
will become seamless and signal-free. This
project is expected to reduce the travel time
between Hebbal to BIA from 45 minutes to 20-25
minutes.The project is expected to be ready by
2013. The Doddaballapur Road, Hennur Road,
Yelahanka and Hebbal areas that are connected
with the International Airport Road are now
hotspots for property development.
As per the project plan, the 3.72 km. stretch from
the Hebbal yover to the beginning of Yelahanka
Bypass (near GKVK) will be an elevated stretch.
From the Yelahanka Bypass to the Trumpet interchange (the gateway to BIA), all the major
junctions will be made signal-free. Towards the

end, two yovers will come up at the Kogilu Cross
and Vidyanagar junctions, while four
underpasses will come up at other crucial
junctions.
ELEVATED CORRIDOR FROM

CENTRAL SILK BOARD JUNCTION
TO JAYAMAHAL ROAD
A 15 km. elevated corridor connecting Central Silk
Board Junction with Jayamahal Road is envisaged
to ease the trac ow between North and South
Bengaluru. This will also facilitate in reaching the
new international airport in the North.
MONORAIL
A 31 km. monorail has been proposed by the
Bengaluru Air Rail Link Ltd. (BARL) that will
connect JP Nagar (in south) with Hebbal (in the
north). After completion, this project will function
as a feeder service to the metro rail as well as to
the international airport.
INVESTMENT
advisory REPORT
Manyata Embassy Business

Park has over 7.5 mn. sq. ft.
stock and 9.4 mn. sq. ft.
under construction
METRO-LINE
A 24 km. North-South (NS) corridor connecting
Hesaraghatta circle near Nagasandra (north) with
Puttenahalli (south) has been proposed. Along
with this, there are also plans (under Metro Phase
II) to extend the Metro line from Hesarghatta up
to the BIA. These signicant projects will add
value to the property along this route.
The region has a demand for residential,
commercial and retail spaces. With plans for the
development of an aerospace Special Economic
Zone (SEZ), IT SEZ and creation of separate

workspaces in the vicinity of the airport, there is
also a huge supply of residential layouts.
HIGH SPEED RAIL LINK (HSRL)

A 33 km. HSRL has been proposed and will
connect the city centre with the airport. The HSRL
will operate between Cubbon Road and BIA with
two halts between them, one at Hebbal and the
other at Yelahanka. The HSRL will run parallel to
the expressway.
Employment Indicators in
North Bengaluru
North Bengaluru region

is expected to
generate direct and
indirect employment of
over
4-4.5 mn. in
the next decade
North zone of the city has a host of civic

infrastructure projects, large commercial
developments and new residential options that
have changed the characteristics of the localities
over the last few years. Bengaluru International
Airport has been the main catalyst for the change
in this region. The monorail, Metro Rail and
Bengaluru-Mysore Infrastructure Corridor (BMIC)
project as well as the social infrastructure
facilities are together set to drive Bengaluru
further ahead.
The existing major employment driver in this
region is the IT/ITeS sector. However, in future the
incremental employment in this region will be
generated from the planned commercial
developments such as ITIR, Aero SEZ, Devanahalli
Business Park, Aerotropolis and Global Financial
District. Cumulatively the GOK has envisaged an
investment of `1,150bn. in the North Bengaluru
region and is expected to generate direct and
indirect employment of over 4-4.5 mn. in the next
decade.
Further, there is the aerospace SEZ that is being

planned here besides three industrial parks on
3,000 acres of land. Many renowned hotels like
Oberoi, JW Marriot and Fortune are also planned
here. There is plenty of commercial development
in the pipeline, with several developers having
bought huge land parcels for development in the
stretch from Hebbal to Devanahalli. With so much
commercial development, we expect residential
development to follow suit in this region making
it the most sought after destination in the next 45 years.
Few builders who have planned residential
projects in North Bengaluru are Brigade Group
with their Gateway, Ozone Developers with their
integrated project called Urbana, Prestige with
their Ozone and Golfshire Projects, Hiranandani
Upscale with their Chancery, Nitesh with their
Columbus Square and Sobha with their Althea.
Since 2008 over 7.5 mn. sq. ft. of oce space
including captive oces has been constructed in
EMPLOYMENT HUBS IN NORTH BENGALURU

SECTOR
PROJECT NAME
MAJOR COMPANIES
IT/ITeS
Manyata Embassy Business Park
Philips, IBM, ANZ
INVESTMENT
advisory REPORT
space stock in North

Bengaluru is 7.7 mn. sq.ft.
of which 6.26 mn. sq. ft. is
occupied
We expect another
9.5
mn. sq.ft. of new oce

space to become
operational by 2017
Over
30 mn. sq. ft. of
IT/ITeS space is operational

as of June 2012 in East
Bengaluru
23,689 units launched

and 15,946 units absorbed
since 2007 in East
Bengaluru
North Bengaluru. Over the next ve years 9.6 mn.

sq. ft. of oce space is expected to be added to
the existing inventory thereby taking it to 17.1 mn.
sq. ft. by the end of 2017. However, demand is
expected not only from the IT/ITeS sector but also
from the aerospace sector, logistic companies
and nancial sectors. Excessive demand for
quality oce space has kept vacancy levels in
lower single digits in 2011 and we expect it to
remain at that level till 2017. We forecast an
incremental 7.3 mn. sq. ft. of oce space to be
absorbed over the next ve years.
NORTH BENGALURU OFFICE

SPACE DYNAMICS
20
18
16
14
12
10
8
6
4
2
Preference of the companies to be in close

proximity of the airport, and employees
preference to stay closer to their workplace will
overall drive the demand for commercial as well
as residential real estate in this location.
before 2009 2010

2008
2011
2012 2013E 2014E 2015E 2016E 2017E
EAST BENGALURU
East Bengaluru had similar characteristics as that
of Bengaluru city. Being a nondescript zone until
the mid 1990s, the region gained prominence only
after the IT boom of the 1990s. Proximity to the
city centre and huge availability of land attracted
many IT/ITeS companies here. Over 30 mn. sq. ft.
of IT/ITeS space is operational as of June 2012.
Major IT/ITeS hubs like Salarpuria Hallmark, ITPB,
RMZ Ecospace, Prestige Shantiniketan and
Bagmane World Centre have made this pocket of
Bengaluru the preferred residential location by IT
population. Further, with the growth of
population, this region had a great deal of social
infrastructure to provide entertainment options to
the residents. Growth of the residential market in
this zone has been primarily along the Whiteeld
Road, KR Puram, Old Madras Road, Old Airport
Road, ITPL, CV Raman Nagar, Mahadevapura,

Hoodi Circle and Indira Nagar.
As on September 2012, East Bengaluru has witnessed a
total of 23,689 residential units being launched
since 2007. Of this a total of 15,946 units have
been absorbed resulting in 33% remaining
unsold. Over the years, unsold units have risen
mainly on account of low pace of absorption due
to high number of launches. Announcement of
new projects has continued with its high
momentum and 9m 2012 witnessed the launch of
5,415 units as compared to 6,400 units launched
throughout 2011. Excess supply from the previous
years has an adverse impact on the unsold units
percentage.
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF EAST BENGALURU

2007 2008
2009
2010
2011
2012*
33%
21%
25,000
No. of Units
Currently the total oce
20,000
10%
4%
15,000
10,000
4%
0%
5,000
Stock
% of Unsold Units
INVESTMENT
advisory REPORT
15.5 km. metro rail
line has been proposed

under Phase-II of the
Bengaluru Metro
Existing
Infrastructure
CONNECTIVITY FROM OLD
MADRAS ROAD TO DEVANAHALLI
The distance between the Old Madras Road
(OMR) in the East and Devanahalli in the North is
over 40 km. There are two major routes that
connect the city centre in the east with the airport
near Devanahalli in the north. The rst route Baiyappanahalli Hebbal BIA is a 40 km. drive
along the ORR. The second route starts on the NH75 near Baiyappanahalli o the Old Madras Road.
It then connects with the airport via NH-648 near
the Hoskote Industrial area. This stretch has also
witnessed a lot of residential traction post the
commencement of BIA. Manyata Tech Park,
Whiteeld Road, ITPB, Hoskote Industrial Park
and other IT space on the ORR are the major
developments fuelling demand for residential
houses in this pocket.
Upcoming
Infrastructure
PERIPHERAL RING ROAD (PRR)
The new metro line

stretch, a part of EastWest corridor, will start
A 116 km. PRR connecting the entire

peripheral arterial road linking all the major
highways has been proposed. The major
connecting areas would be Hosur Road
(south) to Tumkur Road (west) via KR Puram
(east), Bellary Road (north), Old Madras
Road and Sarjapur Road (south). The PRR is
expected to ease the congestion on the
ORR.
from the Byappanahalli

and terminate at
Whiteeld on the East
EAST BENGALURU OFFICE

SPACE DYNAMICS
60
50
40
30
20
10
before 2009 2010

2008
2011
2012 2013E 2014E 2015E 2016E 2017E
METRO-LINE
A 15.5 km. metro rail line has been proposed
under Phase-II of the Bengaluru Metro. This
is the extension of the existing metro line
which runs between Byappanahalli and MG
Road. The new metro line stretch, a part of
East-West corridor, will start from the
Byappanahalli and terminate at Whiteeld
on the East. This corridor has 14 metro
stations - Jyothipuram, KR Puram,
Narayanapura, Mahadevapura,
Garudacharpalya, Doddanakundi,
Visvesvaraya Industrial Estate,
Kundalahalli, Vaidehi Hospital, Satyasai
Medical Institute, ITPL, Kadugodi, Ujwala
Vidyalaya and Whiteeld.

TREND IN NORTH BENGALURU
2007
2008
2009
2010
2011
2012*
6,399
4,691
3,795
2,961
5,415
429
Launches
INVESTMENT
advisory REPORT
Since 2008 more than
37
mn. sq. ft. of oce space
East Bengaluru
has been constructed in

East Bengaluru
We expect another
24
mn. sq.ft. of new oce
The IT/ITeS sector continues to be the major

employment driver of this region. Over 30 mn. sq.
ft. oce space was occupied as of June 2012.
Major IT/ITeS hubs in this region include
Salarpuria Hallmark, ITPB, RMZ Ecospace,
Prestige Shantiniketan and Bagmane World
Centre. The overall demand for this location will
be driven by two major characteristics, a) IT/ITeS
employees preference to stay close to their
workplace and b) well established social
infrastructure including organized retail market.
The proposed PRR will enhance connectivity of all
the industrial hubs of Bengaluru. One node of
this PRR is Hoskote - an upcoming industrial and
automobile hub. Many Japanese companies have

evinced interest in setting up their plants here.
Since 2008 more than 37 mn. sq. ft. of oce
space has been constructed in Eastern
Bengaluru. Over the next ve years we expect
over 24 mn. sq. ft. of oce space to be added to
the existing inventory taking the total stock to 57
mn. sq. ft. by the end of 2017. IT/ITeS sector
remains the single largest demand driver for
these spaces. Currently 20% of the oce space in
the region is vacant and this is expected to
reduce to 16% by 2017. We forecast an
incremental 20 mn. sq. ft. of oce space to be
absorbed over the next ve years.
space to become
operational by 2017
We believe Hebbal and KR

Puram to provide the
highest appreciation in
EMPLOYMENT HUBS IN EAST BENGALURU

SECTOR
PROJECT NAME
MAJOR COMPANIES
IT/ITeS
IT/ITeS
IT/ITeS
Bagmane World Centre

Ferns Icon
ITPB Zone
EMC2
Lenovo, ST Micro Electronics
ABB, Accenture, Amazon
INVESTMENT
DESTINATIONS IN
BENGALURU
Bengaluru market
Hebbal located in the northern region and KR
Puram in the eastern region are the most
promising residential destinations in Bengaluru.
Proximity to the Manyata Tech Park near Hebbal
and Whiteeld Road near KR Puram makes these
destinations an ideal residential location.
Additionally, connectivity of the eastern region
with the northern region through ORR and that of
the city centre with the airport in the north
through NH-7 (Bellary Road) have improved the
commuting experience. Further, the upcoming
PRR which is expected to connect all the
peripheral districts will ease connectivity from the
eastern region to the airport. Proposed
infrastructure projects such as the monorail,
Metro and High Speed Rail Link is expected to
further enhance the connectivity from the city
centre to the airport. These destinations will
benet immensely from the above mentioned
developments.
The GOK is carrying out numerous infrastructure

projects across the cities that are in various
stages of construction. These projects are
expected to bring about phenomenal changes in
terms of connectivity among dierent locations
within the city and reduce the commuting time.
These factors will have a considerable impact on
the real estate prices across the city. However,
the price appreciation will not be uniform across
the city and will vary based upon various themes.
We believe that over a period of the next ve
years North-East Bengaluru will provide the
highest appreciation compared to other zones.
Based on the announced infrastructure projects,
coupled with proximity to the IT corridor, we have
short-listed two destinations that look promising
in this zone viz. Hebbal and KR Puram. These
destinations share some common characteristics
among themselves making them ideal residential
INVESTMENT
advisory REPORT
More than
60% of the
incremental oce space

to be in North and East
Bengaluru
destinations. These destinations are in close

proximity to the IT corridor of Hebbal, Whiteeld
Road and the ORR (Hebbal-KR PuramMarathahalli stretch). Additionally, these
destinations are also well connected with the
Bengaluru International Airport and Bengaluru
city centre. The upcoming monorail, Metro, HSRL
and elevated road will enhance connectivity
between the city centre and the airport.
Following are the factors that will have a positive
impact on the chosen destination:
. Bengaluru will witness an incremental demand

of 44.4 mn. sq. ft. of oce space over the next
ve years, primarily driven by the IT/ITeS
sector. More than 60% of this will be within
North-East Bengaluru.
. Bio-technology industry of Karnataka is
forecasted to grow at an annual average rate

of 10% over the next six years from USD
Bio-technology industry in
Karnataka is estimated to
grow at 10% CAGR from USD
170mn. in 2011 to USD 272mn.
in 2017
170mn. in 2011 to USD 272mn. in 2017. A large

number of these units are expected to be setup in the north-east region mainly on account
of favourable regulations, availability of vast
land parcels, proximity to the city centre and
the talent pool of the city.
. The distinct feature of these destinations will
be a) proximity to the major employment hubs

of Bengaluru i.e. Manyata Tech Park in the
North and Whiteeld and ITPL in the East; b)
quick and easy accessibility to the city centre
and retail hubs for daily requirements; and c)
distance to the airport.
. Additionally, the upcoming metro, monorail,
HSRL corridor between Hebbal and BIA will

further boost the connectivity of this location.
. Proposed PRR will further enhance the
connectivity from all the peripheral districts.
INVESTMENT
advisory REPORT
721
units launched
and 233 units absorbed in
DESTINATION
HEBBAL
last 21 months in Hebbal
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF HEBBAL

2007 2008
2009
2010
35%
33%
1,800
No. of Units
2012*
2011
1,500
8%
1,200
900
600
1%
5%
4%
300
Stock
We forecast prices in
Hebbal to appreciate by
94%
from 2012 to 2017
Hebbal was once the end of the northern city limit

of Bengaluru. However with Bengalurus
horizontal growth, Hebbal has witnessed a
complete make-over in the last decade. Hebbal,
previously, endowed with a calm and serene
environment has now become quite active and
lively. Hebbal gained importance as a destination
with the establishment of Bengaluru International
Airport near Devanahalli which is 30 km. away
from Hebbal. It has now emerged into one of the
IT/ITeS hub, housing many tech parks and
campuses of IT companies. The infrastructure of
Hebbal is outstanding; it has well linked roads
connecting dierent parts of the city. This will be
further enhanced once the monorail, HSRL and
Metro commence in the next 4-5 years that will
connect the city-centre with the airport. This is
expected to immensely increase the residential
prices in Hebbal.
There was a dearth of residential projects in
Hebbal before 2008. It witnessed the launch of a
mere 110 residential units in 2008.

TREND IN HEBBAL
2007
2008
2009
% of Unsold Units
Developers got attracted to this destination post

Airport near Devanahalli in 2008. On account of
this, 372 new residential units were launched in
2010, which on a year-on-year basis registered a
rise of 285%.
As on September 2012, 557 units out of the total
1,604 units launched were unsold, implying 34.7%
of the total inventory as unsold.
We have benchmarked Hebbal to RMV/Sanjay

Nagar which is an established micro-market and
has characteristics similar to Hebbal. Going
forward, we expect the absorption rate to
increase due to the reasons stated earlier and
this will positively impact prices in Hebbal.
Currently, Hebbal prices are 33% lower than our
benchmarked micro-market. We forecast this
discount to narrow down to 10% by the end of 2017
resulting in Hebbal prices moving up from
`4,250/sq.ft. to `8,230/sq.ft.
PRICE FORECAST
* Figures in `/sq.ft
2012
2010
2011
2017E
2012*
`9,145
666
`6,350
`8,230
`4,250
372
305
110
Launches
97
55
RMV/Sanjay Nagar
Hebbal
INVESTMENT
advisory REPORT
PRICE MOVEMENT
`3.6 mn. and

`5.3 mn.
are the
minimum ticket size for

investment in Hebbal for a
2 BHK and 3 BHK Apartment
respectively
* Figures in ` per sq.ft
9,000
10%
8,000
7,000
6,000
33%
5,000
4,000
3,000
2,000
1,000
2007
Hebbal
2008
2009
RMV/Sanjay Nagar
2010
2011
2012
2013E
2014E
2015E
2016E
2017E
Discount Margin
Investment Options in Hebbal

INVESTMENT TICKET SIZE
SELECT PROJECTS
1250 - 1850
3BHK
5.3 - 7.9
850 - 1100
2BHK
3.6 - 4.7
Apartment Size in sq.ft.
Ticket Size in ` mn.
Project
Developer
No. of
Units
Launch Completion
Date
Date
Waters
Edge
Equinox
380
Sep-11
Mar-16
Sobha
City
Sobha
Developers
498
Jun-11
Mar-15
INVESTMENT
advisory REPORT
6,095 units launched

in KR Puram since 2007, of
DESTINATION
KR PURAM
which 42% launched in last

33 months
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF KR PURAM

2007
2008
2009
2010
2011
2012*
29%
Over the next ve years,

we expect KR Puram to
follow Whiteeld in terms
of price
We forecast prices in KR
Puram to appreciate by
91%
from 2012 to 2017
No. of Units
25%
7,000
6,000
5,000
4,000
3,000
2,000
1,000
22%
17%
Stock
17%
16%
% of Unsold Units
KR Puram located on NH-75 o the Old Madras

Road is 3.1 km. from Baiyappanahalli Metro
station and is just 8.2 km from MG Road. Its
proximity to the IT corridor of Whiteeld as well as
of Manyata Tech Park has made it the most
sought after destination among the IT employees.
The proposed Peripheral Ring Road (PRR) will
connect Eastern Bengaluru with Hoskote which is
18 km. from the KR Puram. Widening of the Old
Madras Road Highway to eight-lane has
enhanced the connectivity; the commute time to
ITPL near Whiteeld has reduced to 15-20
minutes. Hence, KR Puram-Budigere Cross stretch
has emerged as a good destination. Proximity to
the IT hub of Whiteeld, improved connectivity
with the airport and proximity to the
Byappanahalli metro rail hub have generated
interest among prospective buyers.
Over 3,600 units were launched since 2008 in KR

Puram micro-market. This led to an increase in
unsold units, which as a percentage to total
inventory kept on rising since 2009. As on September2012, 28.6% of the total units stood unsold in KR
Puram as there is still some supply overhang of
the previous year.
We have benchmarked KR Puram with Whiteeld
which is one of the most established micromarkets of East Bengaluru. Going forward, we
expect the absorption rate to increase due to the
factors stated earlier and this will positively
impact prices in KR Puram. Currently, KR Puram
prices are 37% lower than the established
market. We forecast this discount to narrow down
to 15% by the end of 2017 resulting in KR Puram
prices moving up from `3,245/sq.ft. to
`6,200/sq.ft.
CONNECTIVITY TO
IMPORTANT LOCATIONS
By Road (Existing)
By Metro Rail (Proposed)

TREND IN KR PURAM
2007
Whiteeld
Whiteeld
2008
2009
2010
52
mins
13
km
26
mins
2012*
1,290
1,118
13
km
2011
1,019
881
414
Distance
254
Travel time
Launches
INVESTMENT
advisory REPORT
PRICE MOVEMENT
`3.1 mn.
and
`4.7 mn. are the
8,000
minimum ticket size for
7,000
investment in KR Puram for
6,000
a 2 BHK and 3 BHK

Apartment respectively
15%
5,000
37%
4,000
3,000
2,000
1,000
2007
KR Puram
2008
2009
2010
2011
2012
2013E
2015E
2014E
2016E
2017E
Discount Margin
Whiteeld
PRICE FORECAST
2012
2017E
`7,370
Investment Options
in KR Puram
`5,175
`6,200
`3,245
Whiteeld
KR Puram
1450 - 2100
3BHK
4.7 - 6.8
950 - 1220
2BHK
3.1 - 4.0

SELECT PROJECTS
Project
Developer
No. of
Units
Launch Completion
Date
Date
Purva
Midtown
Puravankara
306
Mar-11
Sep-14
Pashmina Pashmina
Waterfront Developers
250
Jan-12
Dec-14
Purple
Woods
135
Jan-11
Dec-13
Purple
Estates
INVESTMENT
advisory REPORT
Yelahanka located
further north of Hebbal is
at a distance of 19 km
Destination gained
prominence only after the
commencement of
Bengaluru INTERNATIONAL
AIRPORT
Yelahanka is still short of

social infrastructure and
basic amenities
Bengaluru International
Airport Area Planning
Authority formed by
Government of Karnataka
HIDDEN GEM
Yelahanka
Yelahanka located further north of Hebbal is at a
distance of 19km. from the Bengaluru
International Airport (BIA). It was initially
envisaged as the satellite city of Bengaluru, but is
now a part of the BBMP The Municipal
Corporation of Bengaluru. The NH-7 provides
excellent connectivity with the airport as well as
the city centre.
The destination gained prominence only after the
commencement of BIA at Devanahalli. However,
this was the sole reason for the swift rise in the
real estate prices of Yelahanka. The current prices
have already built-in the benet arising out of the
announced projects, which we believe will see
light only after 2017. As on date, Yelahanka is still
short of social infrastructure including basic
amenities like water and electricity. Moreover, the
organised retail market is still non-existent in this
destination.
The Government of Karnataka has proposed
numerous infrastructure projects including
widening of elevated road, High Speed Rail Link
and Metro Rail to improve the connectivity
between the airport and Bengaluru City Centre.
Also, commuter rail system has been planned to
connect Devanahalli with Yeshvantpur via
Yelahanka.
Further, the Government of Karnataka has formed
Bengaluru International Airport Area Planning
Authority (BIAAPA) to ensure organized
development of Bengaluru North, Devanahalli
and Dodaballapur Taluka. A total investment of
`1,150bn. has been earmarked in order to make
North Bengaluru a self-sustaining business hub.
Some of the major investments are Information
CONNECTIVITY TO
IMPORTANT LOCATIONS
FROM YELAHANKA
* By road
HEBBAL
18
km
17
km
19
km
Distance
Technology Investment Region (ITIR) in

Devanahalli, Aero SEZ an aviation hub in
Devanahalli, Devanahalli Business Park and
Aerotropolis. The Government of Karnataka is in
talks with banking giants to set up a Global
Financial District near Devanahalli. These
developments are expected to completely change
North Bengaluru from an unexciting location to a
bustling self-sustaining city.
Cumulatively, the above developments have the
potential to generate 4 mn. direct and indirect
jobs in North Bengaluru over the next two
decades. Hence, we believe that Yelahankas
eventual evolution as a Peripheral Business District will
give birth to a thriving resiential real estate destination.
INVESTMENT
advisory REPORT
CHENNAI
Chennai, the capital of Tamil Nadu, is the fourth most populous city in
India and serves as a gateway to Southern India through its strategically
located port. Chennais urban agglomeration, also known as the Chennai
Metropolitan Region (CMR), is spread over 1,189 sq.km. and consists of
parts of Thiruvallur and Kancheepuram districts apart from Chennai city.
As per Census 2011, the total population of CMR was 8.7 mn.
The development of the CMR is entrusted to the nodal planning agency
Chennai Metropolitan Development Authority (CMDA) which prepares the
master plan for the region. CMDA in September 2008 prepared the
Second Master Plan for Chennai Metropolitan Area, 2026 outlining the
detailed development plan along with land use, transportation, housing
and other important aspects of the CMR.
CHENNAI METROPOLITAN REGION POPULATION

1991
5.42
2.4%
Population
2001
6.56
1.9%
2011
8.70
2.9%
INVESTMENT
advisory REPORT
CHENNAI MAP
Major Roads
U/C Metro Corridor I
U/C Metro Corridor II
Railway Line
South Zone
West Zone
Central Zone
North Zone
INVESTMENT
advisory REPORT
Chennai Metropolitan
Region is spread over
1,189 sq.km. with a
Market
Overview
population of
8.7 mn.
Chennai market has

witnessed the launch of
more than
105,236
units since 2007
Chennai is divided into four broad zones: North,

Central, South and West. It may be noted that
being a coastal city, Chennai does not have an
eastern market and faces the Bay of Bengal.
ZONE
MAJOR RESIDENTIAL
DESTINATIONS
Central
Nungambakkam, Boat Club, Anna

Nagar, Kilpauk, T Nagar,Mylapore,
R.A Puram
West
Sriperumbudur, Mogappair, Porur,

Ambattur, Poonamallee
North
Ayanavaram, Tondiarpet,
Madhavaram, Perambur
South
Old Mahabalipuram Road (OMR),

GST Road, Adyar, Velachery,
Medavakkam
North Chennai is primarily an industrial area

dotted with various locomotive workshops and
port related activities. The two major ports
namely Chennai Port and Ennore Port are located
in this region. Non-availability of vacant land,
narrow arterial roads and lack of employment
opportunities have restricted the real estate
growth of this region as compared to other parts
of the city. Destinations such as Tondiarpet,
Madhavaram and Perambur are the primary
residential locations with large underconstruction projects in these areas. Residential
demand is driven by the business community,
traders and public sector employees here.
Central Chennai is the commercial heart of the
city with various corporate oces located in the
Central Business District (CBD) areas of Anna
Salai, Nungambakkam, Egmore, Nandanam and
others. Excellent connectivity with various parts
of the city, good physical and social infrastructure
and presence of organized retail have ensured
the highest property prices in this part of the city.
Locations such as Boat Club Road, Poes Garden,
Nungambakkam, T Nagar, Mylapore and RA
Puram are some of the prominent residential
areas. Majority of the residential development in
the central locations comprises bungalows and
independent residential units while some
pockets like Alwarpet, Kilpauk and Anna Nagar
are witnessing growth in high-rise construction as

well.
The western part of the city has some of the most
upcoming locations. The saturation of land banks
in Central Chennai has seen westward movement
of residential development. Electronic hardware
corridor in Sriperumbudur and Auto & Auto
Ancillary manufacturing units in Oragadam have
resulted in increased demand for aordable
residential units in this region. Multinationals like
Nokia, Dell, Samsung, Saint-Gobain, RenaultNissan and Hyundai have set up their units here.
However, lack of social infrastructure, absence of
organized retail and distance from the city centre
have restricted growth of the residential market in
this zone.
South Chennai, along the Old Mahabalipuram
Road (OMR) and Grand Southern Trunk (GST) road
is rapidly developing as a self-sustaining hub
with the presence of a large number of IT SEZs, IT
Parks and manufacturing units. Nodes such as
Perungudi, Sholinganallur and Siruseri on the
OMR along with Tambaram and Mahindra World
City on GST road have created enormous
employment opportunities in this region. This has
inherently led to the development of the
residential market in South Chennai.
Additionally, the focus of the state government in
providing excellent road connectivity along these
nodes has further helped in the development of
this region.

TREND IN CHENNAI
2007
2008
2009
2010
2011
2012*
26,152
23,803
14,441
15,505
Launches
12,702
12,633
INVESTMENT
advisory REPORT
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF CHENNAI

As of Q3 2012,
25%
of
the total units remain
2007 2008
unsold
2009
2010
2011
No. of Units
120,000
80,000
40,000
25%
21%
100,000
60,000
2012*
7%
5%
12%
4%
20,000
Stock
33,938
units were absorbed
during 2010 and 2011
65%
of the under
construction units are
located in South Chennai
% of Unsold Units
The advent of the IT sector along with the setting

up of large manufacturing units by multi-national
companies have changed the dynamics of
Chennai real estate market. Apart from
generating thousands of new jobs for the local
residents, Chennai has been attracting a large
pool of migrants into these sectors from across
the country. This has enabled the real estate
market to grow at a tremendous rate during the
last ve years, especially the residential segment
which witnessed the launch of more than 105,236
units since 2007.

CONSTRUCTION UNITS
5%
23%
7%
During 2010 and 2011, more than 49,955 units

were launched in Chennai. However, only 33,938
units were absorbed during this period resulting
in a signicant jump in the unsold units
percentage.
The percentage of unsold units during the rst
nine months of 2012 has further increased despite
the number of new launches falling drastically.
This is primarily because of the supply overhang of
the previous years.
Chennai is land locked on the eastern side by the
Bay of Bengal, thereby restricting its growth to
the remaining three sides. Backed by excellent
rail and road connectivity, the city has been
expanding three ways over the last few decades.
However, development on the northern side is
subdued as compared to West and South
Chennai mainly due to the presence of various
industrial pockets and port related activities here.
Over the last few years, the focus of developers
has been shifting from Central Chennai to the
peripheral areas of South and West Chennai due
to greater availability of jobs here.
65%
Central
West
North
South
INVESTMENT
advisory REPORT
IT/ITeS sector constitutes
Real Estate Drivers
71% of the total office

space in Chennai
Service Sector
Rail Network
Road Network
IT Sector
Auto & Auto Ancillaries
Chennai Metro Corridor I & II
Outer Ring Road
Monorail Corridor I, II & III
Currently Chennai is
CONNECTIVITY
DESCRIPTION
Chennai-Kolkata
Highway (NH 5)
Starts at Basin Bridge till Kottur
Connects Chennai Port with North Chennai
Anna Salai
GST Road (NH 45)
Starts at Fort St. George towards the

south west via airport till Mahindra
World City
Provides easy access from the city centre to

suburbs in the south such as Tambaram,
Vandalur, Maraimalai Nagar and
Singaperumalkoil
Old Mahabalipuram
Road (OMR)
Starts at Madhya Kailash junction

towards the south via Sholinganallur
till Mahabalipuram
Also known as the IT corridor, connects the

city centre with southern suburbs such as
Perungudi, Siruseri and Kelambakkam
Chennai-Bangalore
Highway (NH 4)
Starts from Chennai Central Station

via Sriperumbudur till Bangalore
Connects western markets such as

and Sriperumbudur with the city centre
East Coast Road
Sholinganallur till Mahabalipuram

till Mahabalipuram
Running parallel to the OMR, connects the

coastal locations of South Chennai
connected through
5
major arterial roads and
4
suburban rail networks

CONNECTIVITY
DESCRIPTION
MRTS
Chennai Beach - Tambaram Chengalpet
Running parallel to GST road, connects city

centre with Mahindra World City via Tambaram
and Maraimalai Nagar
South West
Line
Chennai Beach - Thiruvanmiyur

- Velachery
Provides easy connectivity from Velachery via

Tidel Park and Taramani to city centre
North Line
Chennai Central - Ennore Gummidipoondi
Connects the northern part of Chennai with

Central Chennai via Tondiarpet
West Line
Chennai Central - Avadi - Tiruvallur
Connects North Western markets of Ambatur

and Avadi with city centre
INVESTMENT
advisory REPORT

Most of the upcoming
infrastructure
CONNECTIVITY
DESCRIPTION
CURRENT
STATUS
EXPECTED
COMPLETION
Outer Ring
Road I
Vandalur Nazarathpet Nemilichery
The six-lane highway is expected to

decongest the city road by connecting
the GST Road (NH 45) with ChennaiBangalore Highway (NH 4) and NH 205
Under
construction
2012-13
Outer Ring
Road II
Nemilichery Nallur - Minjur
Will connect NH 205 with the ChennaiKolkata Highway (NH 5) and TPP road
at Minjur through a six-lane highway
Land
Acquisition
2016-17
projects will be
operational before
2017
UPCOMING SUBURBAN RAIL NETWORK
IT/ITeS and
Automobile
sectors to be the driving
factors for Chennais
growth
CONNECTIVITY
DESCRIPTION
CURRENT
STATUS
EXPECTED
COMPLETION
Chennai Metro
Corridor I
Washermenpet Chennai Central

Station Chennai Airport
Will enhance connectivity between

Chennai Airport and central Chennai via
Guindy
Under
construction
2015
Chennai Metro
Corridor II
Chennai Central
Will connect the heavy trac route
Station between city centre and St. Thomas
Annanagar Mount
Vadapalani St. Thomas Mount
Under
Construction
2015
Chennai
Monorail
Corridor I
Vandalur Velachery
Better connectivity for Vandalur and

Tambaram with city centre via Valechery
Bidding
stage
2016-17
Chennai
Monorail
Corridor II
Poonamallee Kathipara
Will connect West Chennai via Porur
Bidding
stage
2016-17
Chennai
Monorail
Corridor III
Poonamallee Vadapalani
Enhance connectivity of Poonamallee as

Vadapalani is also a node on Metro
Corridor II
Bidding
stage
2016-17
Employment Indicators in Chennai

Being a port city, Chennai has historically been at
an advantage compared to other metro cities of
South India like Bangalore and Hyderabad. Export
oriented manufacturing industries have always
been attracted to Chennai due to the presence of
two major ports with excellent road and rail
connectivity from all the three sides of India. Auto
& Auto Ancillary sector is one of the largest
employers among the various manufacturing
industries present in the periphery of Chennai.

Apart from the manufacturing plants of Hyundai,
Renault-Nissan, Daimler and Eicher Motors, there
are numerous Auto Ancillary units spread across
the industrial corridor of SriperumbudurOragadam. Additionally, manufacturing plants of
Ford, BMW and Sundram Fasteners on GST road
have also created large scale employment in the
Auto sector.
INVESTMENT
advisory REPORT
Currently the total office

space stock in Chennai is
60.7
mn. sq.ft. of which
44.8
mn. sq.ft. is occupied
76% of the total office

space stock is located in
South Chennai
We expect another
22
mn. sq.ft. of new office
space to be operational in
the next 5 years
Apart from Auto & Auto Ancillary, there are

various other manufacturing industries like
Electronic Hardware, Apparels, Engineering and
Chemicals that have a significant presence in
Chennais periphery. Companies such as Nokia,
Samsung, Motorola, Flextronics, Dell, Asian
Paints and Saint Gobain have their production
units located in West and South Chennai.
Going forward, we expect the Auto & Auto
Ancillary sector to be one of the driving factors for
Chennais growth. We expect the output of Tamil
Nadus Auto & Auto Ancillary industry to grow at
an annual average rate of 24% over the next five
years. Since a large number of manufacturing
plants are located within the vicinity of the city,
Chennai will immensely benefit from this.
Since 2000, the IT/ITeS sector has emerged as
one of the most important drivers of employment
and has significantly contributed towards the
growth of the city.
CHENNAI OFFICE
SPACE DYNAMICS
* Figures in mn. sq.ft
Unlike manufacturing, IT/ITeS sector creates large

scale white collar employment with higher
purchasing power. Blue chip companies like TCS,
Infosys, Wipro, Capgemini, HCL and Cognizant
have established their centres in the city.
Currently the IT/ITeS sector forms more than 70%
of the total office stock and this share is expected
to go up further as new IT/ITeS offices become
operational in the coming years.
Currently the total office space stock in Chennai
is 60.7 mn.sq.ft. of which 67% or 40.4 mn.sq.ft.
has become operational post 2008. However, the
total occupied space stands at 44.8 mn.sq.ft.
resulting in a vacancy level of 26%. Although the
absorption trend witnessed over the previous five
years has been quite healthy, excess supply of
new space has led to a significant jump in
vacancy levels. The high vacancy level in the
existing stock has compelled many developers to
strategically delay the delivery period of the ongoing under construction projects and postpone
the launch of any new projects. Considering this,
we expect another 22 mn.sq.ft. of new office
space to become operational in the next five
years taking the total stock to 82.6 mn.sq.ft. by
the end of 2017.
The recent slowdown witnessed by the IT/ITeS
sector globally is expected to impact the
incremental absorption of office space in Chennai
in the coming five years. However, the delay in
delivery of new projects will bring some respite
and eventually reduce the vacancy levels to 20%
by 2017. We have forecasted an incremental
demand of 21.1 mn.sq.ft. over the next five years
taking the total occupied space in the city to 66
mn.sq.ft. by 2017 end.
Before
2008
2008
2009
2010
2011
2012
2013E 2014E 2015E 2016E
2017E

OFFICE SPACE STOCK
6%
18%
76%
Central
West
South
INVESTMENT
advisory REPORT
generation in
STATUTORY COSTS
AND MARKET NORMS
North
STATUTORY COSTS
Absence of any significant

incremental employment
Chennai
COST
DETAILS
over the next few years
Stamp Duty
8% on Undivided Share (UDS) of land based on Guidance Value (GV). GV is the

rate of land fixed by the state government based on its market
value. The effective rate of stamp duty is 1-2% of property value
Registration
1% upto a Maximum of `30,000
Value Added Tax (VAT)
Nil
Service Tax
3% on agreement value. Levied on under construction properties
will restrict the growth

of real estate in this zone
MARKET NORMS
Although
Central
NORM
DETAILS
Time line for property

registration
Re-sale before
possession
Allowed subject to payment of transfer chargers to developer ranging

`100-200 psf
Loading
30% on carpet area
Brokerage
1-2% of property value
Chennai
will also witness increase
in office space, the quantum
of it will be marginal in
Preferred Zone
in Chennai
comparison to the South

Historically Chennais residential market has
been dominated by end-users with very little
presence of investors, resulting in lower price
volatility as compared to the markets of Mumbai,
the NCR and Bangalore. However with the advent
of IT/ITeS sector and rising income levels, the
perception towards real estate as an investment
has changed drastically in the city over the last
few years. Although end-users still form a
majority of property buyers even today, there has
been a considerable rise in investor interest in the
recent period. Employment growth and
infrastructure development will primarily drive the
real estate market of Chennai in the coming
years.
However, certain zones will grow faster than the
others as the benefit of these factors will accrue
more to these zones. Incremental employment
over the next five years will be largely created in

South and West Chennai as the majority of the
new office space and manufacturing units is
being set up here. Although Central Chennai will
also witness increase in office space, the
quantum of it will be marginal in comparison to
the South and West. Similarly, absence of any
significant incremental employment generation in
North Chennai over the next few years will restrict
the growth of real estate in this zone.
West Chennai is expected to immensely benefit
from the large number of existing and upcoming
manufacturing units on the SriperumbudurOragadam industrial corridor. However, absence
of any significant IT/ITeS offices apart from the
DLF IT SEZ makes this zone depend largely on the
growth in the manufacturing sector.
INVESTMENT
advisory REPORT
South
Chennai, which
will host three-fourth of
the total oce stock, is
expected to witness
maximum growth in the
residential market over
Although the manufacturing sector is expected to

grow strongly, going forward, this zone will not be
able to reap the benet of large scale
employment in the IT/ITeS sector. Higher
purchasing power and preference to reside in
close proximity of their work area, makes IT/ITeS
employees a dominant force in driving the
residential market of any region.
South Chennai, which will host three-fourth of the
total oce stock in Chennai along with the large
number of manufacturing units located on the
GST road, is expected to witness maximum

growth in the residential market over the next ve
years. Heavy trac congestions and absence of
any mass rapid transport system on the IT
Corridor of OMR has resulted in many employees
preferring to stay close to their oces in this
area. This phenomenon is expected to continue
for the next few years as no new mass rapid
transport system is planned on the OMR. Hence,
growth in the IT/ITeS sector of the city will directly
benet the residential market of South Chennai.
the next 5 years
SOUTH CHENNAI
residential
units have been launched

in South Chennai since
2007. Of these, a total of
50,666
units have been absorbed
as of Q3 2012
Growth of the residential market in South Chennai

has been primarily along the three arterial roads
of OMR, GST road and ECR. However, in the last
few years a lot of development has taken place
within the destinations located between OMR and
GST road. The advantage of being centrally
located with easy access to both these roads has

led to many home buyers preferring these
destinations.
South Chennai has witnessed the launch of
68,914 residential units since 2007. Of these, a
total of 50,666 units of this have been absorbed
as of Q3 2012, with 26% remaining unsold. There
has been a steady rise in the percentage of
unsold units over the years, as the pace of
absorption has not been able to keep up with the
pace of new launches. A total of 29,245 units
were launched in South Chennai during 2010 and
2011, of which only 19,550 units were absorbed.
Taking a cue from the market, developers have
become cautious before launching any new
project and only 61 new projects have been
launched in 2012 as compared to 147 during
the previous year. Although the number of new
launches has reduced drastically, the excess
supply from the previous years is impacting the
unsold units percentage. Additionally,
absorption during the rst nine months of 2012
has been abysmally low.
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF SOUTH CHENNAI

2007 2008
No. of Units
68,914
The focus of Tamil Nadu government over the last

decade in promoting OMR as an IT/ITeS
destination along with the setting up of Mahindra
World City on GST road has created immense
employment opportunities in South Chennai.
Additionally, the proximity to Chennai airport,
presence of arterial roads and availability of vast
vacant land parcels has enabled this zone to
rapidly grow into an emerging residential market.
Since 2000, a large number of IT/ITeS companies
have set up their operations in the numerous IT
Parks and IT SEZs on OMR and GST road. The
growth in IT/ITeS based employment, gradually
sowed the seeds of a bustling residential market
in this zone. Preference of employees in staying
close to their work place and aordable pricing as
compared to Central Chennai sustained the
development of a healthy market in this zone.
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Stock
2009
2010
2011
22%
11%
9%
2012*
26%
13%
6%
% of Unsold Units
INVESTMENT
advisory REPORT
n a i ypas
B
s
SOUTH CHENNAI MAP
Ch
NH
Anna
International
Airport
Chennai
Airport
VELACHERY
ea
epass
orr id
or
R oa
IT C
ach
PALLIKARNAI
Ve l
So
ut
he
rn
SRIPERUMBUDUR
oa
Tr u
PALLAVARAM
kR
er y
CHROMEPET
NH
Chennai By
45
Velachery Road
MEDAVAKKAM
ast
L in
k Road
Road
TAMBARAM
East C
o
oa
Old Mahabalipuram
SH
121
Gr
ea
East Coast Road
tS
ou
t he
rn T
r un
kR
VANDALUR
ADYAR
St. Thomas
Mount
45
NH
at el Road
East Co ast R
o ad
en
Kunrathur
Sard
ar P
SITHALAPAKKAM
GUDUVANCHERI
NH
BAY
OF
BENGAL
SIRUSERI
a m a ll
12
Ol
dM
SH
a pur a m
45
45
d
Roa
ast
Eas
Ol
ea
Gr
NH
t Co
tS
ou
th
dM
ah a
b
er
alip
u
r am
nT
run
Ro a
d
kR
oa
Paranur
Proposed Monorail
Major Roads
CHENGALPATTU
U/C Metro Corridor I
ram
lapu
To M
ama
l
To M am al
la pu
lp
To C h en ga
at tu
Chengalpattu
ra m
THIRUPORUR
U/C Metro Corridor II

Airport
Railway Line
Benchmark location
Top destination
Employment Hubs
INVESTMENT
advisory REPORT
Lack of social
infrastructure and
absence of organized
retail have restricted the

TREND IN SOUTH CHENNAI
2007
2008
2009
2010
2011
2012*
growth of residential
market on
OMR
16,740
beyond the rst toll
11,889
plaza
9,185
Launches
12,505
acres
Mahindra
World City
led to a dramatic change
in the development of the
GST Road with huge
employment opportunities
being created
However, lack of social infrastructure and

absence of organized retail are the major
drawbacks of these segments and hence
preference among home buyers to reside here is
low. Some of the major residential destinations
located here are Thuraipakkam, Sholinganallur,
Navallur, Egattur and Padur.
10,355
8,240
Existing
Infrastructure
Commencement of the 1,550
up their campuses along this route. ELCOT SEZ

and SIPCOT IT Park are the two landmark oce
space developments in these segments.
OLD MAHABALIPURAM ROAD

(OMR)
OMR, also known as the IT Highway or Rajiv
Gandhi Salai, starts from Madhya Kailash
Junction near Adyar till Mahabalipuram. It is a sixlane highway being developed in two phases,
with Phase I of 20.1 km. from Madhya Kailash
Junction to Siruseri already under operation since
2008. The work on Phase II that will connect
Siruseri to Mahabalipuram is still underway.
Phase II is expected to be ready in another 3-4
years. Phase I of OMR is further divided into three
segments based on toll plazas. The road from
Kailash Junction to Perungudi toll plaza is known
as the rst segment.
Proximity to the city centre, presence of an
established oce market and access to retail
malls has enabled rapid development of various
residential markets located along the rst
segment. Some of the major IT/ITeS projects such
as TIDEL Park, Ramanujan IT Park, Ascendas
International Tech Park, RMZ Millenia Business
Park and SP Infocity are located in this segment.
The road from Perungudi toll plaza till Egattur toll
plaza is known as the second segment and the
road beyond Egattur as third segment. These two
segments of the OMR have also witnessed
tremendous residential development over the last
few years, as many IT/ITeS companies have set
GRAND SOUTHERN TRUNK (GST)

ROAD
GST road, also known as NH-45, is one of the
busiest National Highways in Southern India and
starts from Kathipara junction in Guindy till Theni.
It is a four-lane highway with various suburban
destinations and the Chennai airport located
along the road. The setting up of Ford Indias
manufacturing plant at Maraimalai Nagar was one
of the rst major developments on this road.
However, commencement of the 1,550 acres
Mahindra World City in 2005 at Chengelpet led to
a dramatic change in the development of this
corridor with huge employment opportunities
being created across the IT/ITeS, Auto & Auto
Ancillary and Apparel sectors. In addition to this,
setting up of Shrirams The Gateway and Estancia
IT SEZ have further facilitated growth of the
IT/ITeS sector on this road.
Residential development on the GST road has
been centred along the hubs of Chromepet,
Tambaram, Vandalur, Maraimalai Nagar and
Singaperumalkoil. The seamless connectivity
throughout the road leaves little variation in
terms of price among the various residential
destinations located on GST road, as the time
taken to travel between them is very marginal.
EAST COAST ROAD (ECR)

ECR, also known as the Entertainment Corridor, is
a two lane highway built along the coast of the
Bay of Bengal connecting Chennai with
Pondicherry. The road starts at Thiruvanmiyur in
South Chennai and runs parallel to OMR and
nally merges with OMR at Mahabalipuram. Since
the last ten years this road has witnessed
considerable real estate development with
numerous theme parks, boat houses, beaches,
5-star hotels and pubs dotted along the stretch.
With the absence of any signicant oce space,
residential development along this road has been
restricted to second homes and villas.
INVESTMENT
advisory REPORT
MRTS forms a vital

part of the infrastructure
CHENNAI BEACH- VELACHERY

MASS RAPID TRANSIT SYSTEM
(MRTS)
Upcoming
Infrastructure
in South Chennai as it
connects Central Chennai
CHENNAI BEACH
with major IT/ITeS hubs on

CHENNAI FORT
PARK TOWN
the OMR like Taramani and
VANDALUR-VELACHERY
MONORAIL
CHINTADRIPET
Perungudi
CHEPAUK
TIRUVELLIKENI
LIGHT HOUSE
TOWARDS CHENNAI
BEACH VIA MRTS
THIRUMAYILAI
MANDAVELI
GREENWAYS ROAD
KOTTURPURAM
KASTURBA NAGAR
ST. THOMAS
MOUNT
VELACHERY
INDIRA NAGAR
THIRUVANMIYUR
ADAMBAKKAM
NARAYANAPURAM
TARAMANI
PUZHUTHIVAKKAM
PERUNGUDI
VELACHERY
PERUNGALATHUR
TAMBARAM
EAST
IRUMBULIYUR
VandalurVelacher
Monorail
corridor will immensely
The Chennai Beach Velachery MRTS is a mass

rapid transit system that currently runs within the
city from Chennai Beach to Velachery, covering a
distance of 20 km with 17 stations. The network
till Velachery became fully operational in 2007
and currently work on the extension of this line
from Velachery to St. Thomas Mount is underway.
Work on the extended line is expected to be
completed by the end of 2013. MRTS forms a vital
part of infrastructure in South Chennai as it
connects Central Chennai with major IT/ITeS hubs
on OMR like Taramani and Perungudi.
benefit South Chennai by

providing the much needed
link to the city centre
SOUTH WEST SUBURBAN

RAILWAY NETWORK
The South West Suburban rail network is
operated by the Southern Railways of the Indian
Railway which plies from Chennai Beach to
Chengalpet via Tambaram. The route is divided
into two points with Tambaram located in the
centre. Trains between Chennai Beach and
Tambaram run every 5-10 minutes which is
considerably higher than the frequency of 15-25
minutes between Tambaram and Chengalpet. It is
a vital mode of transport for employees working
in Mahindra World City which has a dedicated rail
station on this network known as Paranur. Since
the rail network runs parallel to GST road, it also
serves as an important mode of transport for
other employment hubs located on this route
such as Estancia IT SEZ and Ford India plant.
CAMP
ROAD
PALLIKARANAI
SEMBAKKAM
MEDAVAKKAM
GOWRIWAKKAM
VANDALUR
The Chennai Monorail that was first announced in

2006, is finally being pursued by the Tamil Nadu
government on a fast track basis and is currently
at the bidding stage. In Phase I, three corridors
will be constructed, out of which two will enhance
the connectivity of West with East Chennai and
one will improve the connectivity of South with
North Chennai.
The corridor connecting Vandalur with Velachery
will immensely benefit South Chennai by
providing the much needed link to the city. Since
Velachery is already connected with Chennai
Beach via the Chennai Beach-ThiruvanmiyurVelachery MRTS route, it is expected to become
an important transport hub between South and
Central Chennai. The 23 km. monorail route is
expected to take anywhere between 4-5 years to
become fully operational from the time it is
awarded to the winning bidder.
However, we expect the benefits will start getting
reflected in the residential prices of all the
destinations that are located on the route, once
construction commences. We expect work to
begin anywhere between the next 8-12 months.
INVESTMENT
advisory REPORT
Since 2008, more than
30 in South Chennai
mn. sq.ft. of office space
has been constructed on

the OMR and GST road
including the captive
offices of companies like
Infosys, Wipro, HCL, TCS and
Capgemini
EMPLOYMENT HUBS IN SOUTH CHENNAI

SECTOR
PROJECT NAME
MAJOR COMPANIES
IT/ITeS
IT/ITeS
IT/ITeS
IT/ITeS
IT/ITeS
IT/ITeS
IT/ITeS
OMR
TIDEL Park
Ramanujan IT Park
Ascendas International Tech Park
RMZ Millenia Business Park
SP Infocity
ELCOT SEZ
SIPCOT IT Park
TCS, Cognizant, QuScient Technologies

HP, Infosys, Mindtree
Amazon, Catepillar
Capgemini, Flextronics, Sasken
Verizon, HSBC, Saksoft
Wipro, Cognizant, HCL
TCS, Cognizant, Patni
IT/ITeS
IT/ITeS
IT/ITeS
Manufacturing
Manufacturing
Shriram The Gateway

Estancia IT SEZ
Mahindra World City
Mahindra World City
Ford India
GST ROAD
We forecast
18.8
mn.
sq.ft. of incremental
office space to be
absorbed in South Chennai
over the next 5 years
The major employment drivers in South Chennai

are the IT/ITeS sector and Auto & Auto Ancillary
industry. Since 2008, more than 30 mn sq.ft of
office space has been constructed on the OMR
and GST road including the captive offices of
companies like Infosys, Wipro, HCL, TCS and
Capgemini. However, a lot of this space is still
unoccupied as many IT/ITeS companies have
delayed their expansion plans due to the recent
slowdown in the sector.
Over the next five years, another 19.6 mn sq.ft of
office space is expected to become operational in
South Chennai which will take the total stock to
59.8 mn.sq.ft. by the end of 2017. Currently 28%
of the total office space in South Chennai is lying
vacant and is expected to increase to 35% by
2013 as additional space gets constructed.
However, 2014 onwards we expect the vacancy
levels to drop down as delivery of new office
space will be lower compared to 2012 and 2013.
Accenture, Take Solutions, Redington

Maveric Systems
Infosys, Capgemini, MindTree
BMW, Sundram Fasteners, Brakes India
Ford India
The traction expected in South Chennais office

space is bound to create additional employment
in the zone. Since the preference among IT/ITeS
employees for residing closer to their workplace
is high, its impact will be positively felt on the
demand for residential units here.
SOUTH CHENNAI OFFICE

SPACE DYNAMICS
* Figures in mn. sq.ft.
70
60
50
40
30
20
10
Before
2008
Additionally, we forecast 18.8 mn.sq.ft. of

incremental office space to be absorbed over the
next five years, which will help in bringing down
the vacancy level to 20% by the end of 2017.
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E
INVESTMENT
advisory REPORT
Out of the total office

space stock of
59.8
mn.sq.ft. which is
expected to be
Investment
Destinations
in SOUTH
Chennai
from Velachery to Medavakkam via Pallikarnai is

located between the OMR and GST road and runs
parallel to them. It is well connected by road to all
the employment hubs of South Chennai.
Additionally, the Vandalur-Velachery Monorail
project will further enhance the connectivity of
these destinations with the city centre in the
north and GST road in the south as it passes
through each of these locations. These
destinations are also well connected with the
Chennai International Airport and central
locations such as Adyar and Anna Salai through
Madhya Kailash Junction. We expect the
destinations of Pallikarnai and Medavakkam to
witness the maximum amount of price
appreciation in Chennais residential market over
the next five years.
operational in South
Chennai by 2017,
82%
will be located on
the OMR
Destinations like
Pallikarnai
and
Medavakkam
are located not only
Incremental employment in the IT/ITeS sector and

enhanced connectivity due to the monorail will
drive the residential market of South Chennai in
the coming five years. Although prices will rise in
majority of the destinations located in this zone,
there will be certain destinations that will
outperform others. Between the two arterial
roads- OMR and GST road, we expect OMR to
witness higher price growth due to the
concentration of office space here. Out of the
total office space stock of 59.8 mn.sq.ft. which is
expected to be operational in South Chennai by
2017, 82% will be located on the OMR.
The primary reasons in brief for these

destinations to outperform others in Chennai over
the next five years are:
Tamil Nadus Auto & Auto Ancillary industry is
forecasted to grow at an annual average rate of
24% over the next five years. A large number of
these units are located on GST road and within
Mahindra World City in South Chennai
Chennai will witness an incremental demand of
21.1 mn sq.ft of office space over the next five
years primarily driven by the IT/ITeS sector.
88% of this will be within South Chennai.
Accessibility to major employment hubs on
OMR and GST road, proximity to the city centre
and distance from Chennai airport will be the
key differentiating factors among the various
destinations located in South Chennai.
Pallikarnai and Medavakkam address all the
above factors due to their favorable location.
Along the OMR, the preference for locations

closer to the city centre is high due to the lack of
social infrastructure and organized retail in the
distant suburbs. This makes destinations located
beyond the first and second toll plaza less
attractive to home buyers in comparison to
destinations before the first toll plaza.
The above mentioned limitations have led to the
unprecedented development of destinations such
as Pallikarnai and Medavakkam as they are
located not only closer to the city centre but also
have easy access to OMR and GST road. The route
closer to the city centre

but also have easy access
CONNECTIVITY TO IMPORTANT LOCATIONS FROM

PALLIKARNAI AND MEDAVAKKAM
Ma
al Airport
EZ
, Tamabram
io
n
Mah
in
TID
E
eri
us
15-18
mins
na
i Internat
8-25
mins
unction
10-15
km
ateway
6-12
km
C he
eG
Travel time
r
ar k, Si
40-50
mins
25-35
mins
Shrir am T
SIPC OT
Distance
15-21
km
23-30
mins
IT
P
36-42
km
ya Kailas
dh
hJ
15-20
km
10-18
mins
a World C
dr
hengalpet
10-20
mins
ark, Tara
,C
ity
6-12
km
4-10
km
LP
ni
ma
olingan
a
Sh
r
llu
EZ
,
* By road
ELCOT S
to OMR and GST road
INVESTMENT
advisory REPORT
We expect the destinations

of Pallikarnai and
Medavakkam to witness
the maximum amount of
price
appreciation
in Chennais residential
market over the next 5
years
Additionally, the upcoming monorail corridor

between Vandalur and Velachery will further
boost the connectivity of these locations with the
city centre and GST road.
Most of the factors that will drive the residential
prices in South Chennai will be common for all
the destinations located here. However, the
degree of influence will be different for each of
them depending on the location of the respective
destination within this zone. Adyar, which is the
most established destination in South Chennai,
has been considered as the benchmark for
comparing prices in this zone and going forward
we expect all the other destinations located here
to follow the price trend of Adyar.
Currently the residential prices in Pallikarnai and
Medavakkam are at a significant discount
compared to Adyar. We believe that over the next
five years, this discount will narrow down due to
the reasons listed earlier. However, the price
difference among each of these destinations will
persist since the factors influencing price are
identical for all of them.
Adyar,
which is the
most established
destination in South
Chennai, has been
considered as the
benchmark for comparing
prices in this zone
INVESTMENT
advisory REPORT
Pallikarnai has witnessed

the launch of
1,684
DESTINATION
PALLIKARNAI
units since 2007, of which
1,382
units have been
absorbed till Q3 2012
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF PALLIKARNAI

2007 2008
2009
2010
2011
2012*
18%
16%
No. of Units
2,000
1,600
4%
1,200
2%
2%
2%
800
400
Pallikarnai to increase by
93% in the next 5 years
Currently, the percentage

of unsold units stands at
18%
Stock
Pallikarnai, which is located a few km. south of

Velachery, is well connected by road to all the
major employment hubs in south Chennai.
However, absence of rail network has restricted
the growth in prices of this destination. Going
forward, this is about to change as the upcoming
Vandalur-Velachery Monorail project will
signicantly enhance the rail connectivity of
Pallikarnai with the GST Road and the city centre.
From 2007 to 2010, Pallikarnai witnessed a
healthy absorption trend. However, the sudden
surge in new launches during 2011 along with a
price rise of 10% led to a signicant increase in
unsold units percentage during the year.
Currently, the percentage of unsold units stands
at 18%.

TREND IN PALLIKARNAI
2007
2008
2009
2010
2011
% of Unsold Units
2012*
The dynamics of Pallikarnai are expected to

change dramatically in the coming years due to
the upcoming Vandalur Velachery Monorail
network. This will narrow down the current price
dierential between Pallikarnai and Adyar.
Currently, prices in Pallikarnai are 65% lower than
Adyar, which is the most established market in
South Chennai. In the next ve years, we expect
this discount rate to narrow down to 49% due to
various reasons discussed before. This will result
in prices increasing from `4,200/sq.ft to
`8,100/sq.ft by 2017.
PRICE FORECAST
* Figures in `/sq.ft.
2012
900
2017E
`15,858
`12,000
`8,100
`4,200
230
228
181
52
Launches
94
Adyar
Pallikarnai
INVESTMENT
advisory REPORT
PRICE MOVEMENT
` 3.3
mn. is the minimum
ticket size investment for

a 2 BHK apartment in
Pallikarnai
16,000
14,000
12,000
49%
10,000
65%
8,000
6,000
4,000
2,000
Before
2008
Pallikarnai
2008
2009
2010
2011
2012
2013E
2014E
2015E
2016E
2017E
Discount Margin
Adyar
Investment Options in Pallikarnai

Appartment Sizes start
from
571 sq.ft. for a 1
BHK in Pallikarnai
1325 - 2136
3BHK
5.6 - 8.9
SELECT PROJECTS
790 - 1766
571 - 623
2BHK
1BHK
3.3 - 7.4
2.4 - 2.6
Project
Developer
No. of
Units
Launch Completion
Date
Date
Mapleton
Appaswamy
473
Jan-11
Apr-13
Akash
Ganga
Rajkham
87
Apr-12
Dec-13
INVESTMENT
advisory REPORT
Medavakkam has witnessed

the launch of
5,707
DESTINATION
MEDAVAKKAM
units since 2007, of which
4,147
units have been
absorbed till Q3 2012
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF MEDAVAKKAM

2007 2008
2009
2010
2011
2012*
27%
No. of Units
26%
22%
6,000
3%
3%
4,500
3%
3,000
1,500
Stock
Medavakkam, which is around 6 km. south of

Velachery, is another emerging residential hub
with excellent road connectivity with
Sholinganallur on the OMR and Tambaram on GST
road. Sharing similar characteristics with
Pallikarnai, the prices in this destination have
moved in the same range as Pallikarnai over the
last ve years.
Medavakkam to increase by
103%
% of Unsold Units
Medavakkam witnessed a large number of new

launches during 2010 and as it lacked the
capacity to absorb such a huge number, there
was a sudden jump in unsold inventory. During
2011 and 2012, the percentage of unsold

inventory increased further despite lesser number
of new launches due to the oversupply from the
previous year. As of Q3 2012, the unsold
inventory in Medavakkam stands at 27%.
Over the next ve years, we expect Medavakkam
to follow Pallikarnai in terms of price as the
benet of Vandalur Velachery Monorail network
will accrue equally to this destination too. The
price dierential with Adyar will similarly narrow
down from 68% in 2012 to 51% by 2017, resulting
in a price rise from `3,800/sq.ft to `7,700/sq.ft.
from 2012 to 2017

TREND IN MEDAVAKKAM
2007
2008
2009
2010
2011
2012*
PRICE FORECAST
2012
2017E
`15,858
2,411
`12,000
`7,700
`3,800
1,256
870
621
315
Launches
233
Adyar
Medavakkam
INVESTMENT
advisory REPORT
PRICE MOVEMENT
` 3.4
` 4.6
mn. and
mn. are the
minimum ticket Sizes for

investment in Medavakkam
for a 2 BHK and 3 BHK
respectively
16,000
14,000
12,000
10,000
51%
68%
8,000
6,000
4,000
2,000
Before
2008
Medavakkam
2008
2009
2010
2011
2012
2013E
2014E
2015E
2016E
2017E
Discount Margin
Adyar
Over the next ve years,

we expect
Medavakkam
Investment Options in Medavakkam

to follow Pallikarnai in
terms of price
2450 - 2710
4BHK
9.3 - 10.3
SELECT PROJECTS
Project
Developer
No. of
Units
Launch Completion
Date
Date
Purva
Purvankara
756
Mar-11
Mar-14
Spring
Field
Navin
Housing
280
Oct-10
Dec-14
Majestica
Vasavi
Housing
260
Jul-10
Dec-14
Indiabulls
Greens
Indiabulls
900
Sep-10 May-14
Windermere
1220 - 2161
3BHK
4.6 - 8.2
902 - 1254
2BHK
3.4 - 4.8
560 - 715
1BHK
2.1 - 2.7
INVESTMENT
advisory REPORT
DELHI-NCR
The National Capital Region (NCR) is spread over 33,578 sq. km. making it
one of the largest urban agglomerations in the world. It was initially
conceived under the rst Master Plan of Delhi in 1962 and conceptualized
with the foremost objective of creating a metropolitan area around Delhi,
so as to ease out the pressure on the national capital. The NCR
encompasses of the entire National Capital Territory of Delhi as well as
select urban areas from its neighbouring states of Haryana, Rajasthan
and Uttar Pradesh (UP). By virtue of this development, Gurgaon, Noida
and Greater Noida emerged as the major sub-regions of the NCR.
NATIONAL CAPITAL REGION POPULATION

1991
27.36
3.2%
Population
2001
37.10
3.1%
2011
47.38
2.5%
INVESTMENT
advisory REPORT
DELHI-NCR MAP
DELHI
GHAZIABAD
35000
5000
12000
NOIDA
GURGAON
A National Capital Region Planning Board (NCRPB) was formed under the NCR Planning
Board Act 1985, by the Ministry of Urban Development. The central focus of the board
was to coordinate the development of the NCR with the State Governments of Haryana,
Uttar Pradesh and Rajasthan. Led by Gurgaon and Noida, the NCR has witnessed
substantial growth as a centre for e-commerce associated businesses including
outsourcing and o-shoring activities. Major industries like IT/ITeS, Automobile and
Pharmaceuticals contribute the most towards the economy of this region.
Proximity to the national capital and enhanced connectivity due to the metro line
across the NCR, has positioned it as the most preferred destination for corporate and
MNCs to set up their oces. The prime ones include Microsoft, IBM, Amdocs, Norte,
Dell, Nokia, SAP, Accenture, Motorola and Ericsson. Hence, it is believed that the NCR is
on the brink of emerging as the 'knowledge' hub of India. Along the growth of the
service industry the region witnessed huge immigration. As per Census 2011, the
population of the NCR witnessed a 2.5% annual rise during the decade 2001-2011, the
total population now stands at 47.38 mn.
FARIDABAD
GREATER NOIDA
Major Roads
Major Roads
Railway Line
Railway Line
Existing Metro
Metro Corridor I
Under Construction Metro
Metro Corridor II
Delhi
South Zone
Gurgaon
West Zone
Faridabad
Central Zone
Noida
East Zone
Greater Noida
North Zone
Ghaziabad
STATE/UT
REGIONS
Delhi
Delhi - National Capital Territory
1,483
Haryana
Faridabad, Gurgaon, Mewat, Rohtak,

Sonepat, Rewari, Jhajjhar, Panipat
and Palwal
13,413
UP
Meerut, Ghaziabad, Gautam

Budha Nagar, Bulandshahr
and Baghpat
Rajasthan
Alwar
Total
AREA (SQ. KM.)
10,853
7,829
33,578
INVESTMENT
advisory REPORT
National Capital Region

(NCR) is spread over
33,578
Market
Overview
sq.km.
The NCR is divided into six broad zones: Delhi,
Gurgaon, Noida/ Greater Noida, Faridabad,
Ghaziabad and Alwar.
Population of the NCR

increased by
20
ZONE
MAJOR RESIDENTIAL
DESTINATIONS
Delhi
Rohini, Ashok Vihar, Civil Lines,

Greater Kailash, South Extension,
Hauz Khas, Anand Vihar, Pashchim
Vihar, Janakpuri, Raja Garden,
Tagore Garden, Rajouri Garden
Gurgaon
Dharuhera, Golf Course Road,

Sohna Road, MG Road, NH-8,
Dwarka Expressway, Manesar
Noida/Greater
Noida
Noida, Noida Extension, NoidaGreater Noida Expressway
Faridabad
Neharpar, Dayal Bagh Colony,

Sainik Colony
Ghaziabad
Crossing Republik, Indraprastha

Yojna, Raj Nagar, Raj Nagar
Extension
Alwar
Neemrana, Bhiwadi, Behror

Highway, Station Road
mn. in
THE last 2 decades
55% of the residential

under-construction units
NATIONAL CAPITAL TERRITORY

DELHI
in Noida and Greater Noida

Delhi, the capital of India is the fth most
populated city in the world. It is situated in
central north India and stands on the west bank
of Yamuna River. It is spread over an area of 1,483
sq. km., 216 m. above sea level and has a
population of around 16.75 mn. Delhi is the
political hub of India comprising headquarters of
all the political parties as well as important
administrative oces. It has evolved from being a
city of royal power to the seat of bureaucratic
power.
It has also transpired as one of the central hubs
of North India's trading and service industry.
Delhi has emerged as the major commercial
centre for small, medium and large scale
industries. The information technology (IT),
electronic, textile and fashion industry are also
the major contributors to Delhi's economy.
Based on its geographical locations the city is

divided into North Delhi, East Delhi, West Delhi
and South Delhi.
North Delhi houses numerous small scale
industries and has emerged as one of the major
markets of small industries. Low-rise
condominiums and narrow streets full of chaos
are the major characteristic of North Delhi. This
refrains major white-collared executives from
living here. It looks entirely dierent from the
more modern New Delhi and south Delhi areas.
Chawri Bazaar, Chandini Chowk, Mori Gate,
Kashmere Gate, Sadar Bazaar and Tis Hazaari are
some of the major micro-markets of Old Delhi.
East Delhi is largely inhabited by the middleincome working class population. The residential
real estate market comprises the independent
houses and DDA apartments. The 2010 Common
Wealth Games held in East Delhi completely
changed its landscape and gave the necessary
growth impetus to this region. Delhi Metro has
enhanced the connectivity of East Delhi with
major destinations like Delhi City Centre and
Noida. Some of the major micro-markets of East
Delhi are Akshardham, Pushpanjali Enclave,
Vivek Vihar, Patparganj, Lakshmi Nagar, Mayur
Vihar, and Preet Vihar.
ZONE-WISE SPILT UP OF
UNDER CONSTRUCTION UNITS
18.8%
0.8%
2.0%
23.6%
21.2%
33.7%
Delhi
Noida
Faridabad
Gurgaon
Gt. Noida
Ghaziabad
INVESTMENT
advisory REPORT
residential
units launched in DELHI NCR

since 2007
South Delhi is considered to be the most auent

micro-market of Delhi. The residential real estate
comprises independent houses and bungalow
style developments. Major administrative oces
including embassies and consulates are located
here. By virtue of this, South Delhi has become
the most sought after destination among the
high-prole bureaucrats and the top corporate
executives. High residential demand and dearth
of new supply has propelled the residential prices
in this part of Delhi.
Its proximity to the international airport,
educational institutions and to the city centre has
made this region the most preferred destination.
Moreover, proximity to the commercial hub of
Nehru Place and Lajpat Nagar coupled with the
presence of organized retail further augmented
the demand for this region. Some of the major
micro-markets are Greater Kailash, Chanakyapuri,
Lajpat Nagar, Nehru Place, Defence Colony,
Vasant Kunj, Hauz Khas and Friends Colony.
GURGAON
Gurgaon was developed to ease out the
burgeoning growth of New Delhi. It is one of the
four major satellite cities of the NCR, located 30
km. south of New Delhi. The evolution of Gurgaon

coincides with the 1990s liberalization of the
Indian economy. Contemporary Gurgaon is dotted
with high-rise buildings and spectacular malls.
Over the years Gurgaon earned the sobriquets of
the 'Millennium City' and the 'Mall City' of India.
Gurgaon is not only an industrial and nancial
centre of Haryana but also one of the most
pronounced IT/ITeS outsourcing and o-shoring
hubs in the world. Further, it is also a major hub
for the automobile, telecom and garment
manufacturing industries. Major factors like
availability of huge land parcels, quality
commercial properties, proximity to the
international airport, favourable government
policies and access to the talent pool lured many
corporates to Gurgaon.
Some of the prime residential and commercial
micro-markets of Gurgaon include MehrauliGurgaon Road (MG Road), Golf Course Road, Golf
Course Extension Road, Sohna Road and NH-8.
These locations are well-connected with New
Delhi through the six-lane NH-8 and MG Road.
The NH-8 also provides quick and easy access to
the New Delhi International Airport. Further, a 14
km. Southern Peripheral Road (SPR) covers all the
major developments in this part of Gurgaon and
connects MG Road and Golf Course Extension
Road with NH-8. The connectivity between the
adjoining markets of Delhi and Noida is further
enhanced by the existing metro-rail. Further, a
new residential belt has emerged along the
upcoming 8 lane 18 km. Northern Peripheral Road
(NPR) or Dwarka Expressway. This expressway
would act as an alternative route for the existing
Delhi-Gurgaon Expressway. A 135 km. KundliManesar-Palwal (KMP) Expressway is under
construction, once completed this expressway
will provide connectivity with the major industrial
hubs of Haryana. This has given a llip to
commercialization in Manesar.
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF NCR

2007 2008
2009
2010
2011
2012*
23.8%
No. of Units
518,200
West Delhi is primarily a residential hub with a

cosmopolitan population. Sound infrastructure
and a well-developed organized retail market
oered the necessary boost to this region.
Additionally, West Delhi region gained
prominence due to its proximity to the
commercial hubs of Janakpuri, Rajaouri Gardens
and Punjabi Bagh. Over the years, it has emerged
as the most sought after destination thereby
making it one of the major posh localities of
Delhi. Patel Nagar, Punjabi Bagh, Pitampura,
Rohini, Dwarka, Janakpuri and Rajouri Garden are
some of the major micro-markets of this region.
19.2%
600,000
14.1%
500,000
400,000
300,000
9.4%
9%
7.8%
200,000
100,000
Supply
Demand
% of Unsold Units (RHS)
INVESTMENT
advisory REPORT
395,650 residential
units absorbed in Delhi NCR
since 2007
Golf Course Road is the most sought after

destination owing to its proximity to South Delhi
(a posh locality) and hence boasts of the highest
residential property prices in Gurgaon. MG Road
is a self-sustaining micro-market with the
presence of well-developed organised retail
market, superior residential development and
quality commercial oces. DLF Cybercity, Udyog
Vihar, Signature Towers, DLF Corporate Park,
Spaze IT Park, Vatika Business Park and Unitech
Infospace are some of the major commercial
buildings. Golf Course Extension Road is catching
up with the Golf Course Road with its quality
residential development.
NOIDA
Noida city is located in the Gautam Buddha Nagar
district of Uttar Pradesh. Geographically it is
situated to the south-east of Delhi and spread
over 20,316 hectares. New Okhla Industrial
Development Authority is the nodal agency for
the overall development of this region. Noida has
emerged as one of the major satellite cities of the
NCR after Gurgaon. Noida is well connected with
Delhi, Agra, Faridabad and Ghaziabad. A 165 km.
Yamuna Expressway provides connectivity with
Agra via Mathura; an eight-lane Delhi-Noida-Delhi
(DND) Flyover connects Noida and Delhi and a
Faridabad-Noida-Ghaziabad (FNG) highway
provides connectivity with Faridabad and
Ghaziabad. Noida has the Delhi Metro facility till
the City Centre from Delhi and also up to Vaishali.
The metro will further expand in Noida and also
cover Noida Extension and Greater Noida.
145,395 residential
units launched in Noida
during 2007-12
Over the years, Noida has developed into an

IT/ITeS hub. A number of IT/ITeS companies like
HCL, Dell, Adobe Systems, ATC Labs, Interra, CSC,
Fiserv, IBM and AON Hewitt have set up their base
in the city. It is now swiftly emerging into a hub
for automobile ancillary units with multinational
companies like Honda-SIEL, Escorts and Daewoo
setting up oces here. Noida-Greater Noida
Expressway and Sector 58, 62, 63 and 64 have
emerged as the major commercial hubs in Noida.
GREATER NOIDA
Noida Expressway and the Yamuna Expressway

provides connectivity between Noida, Greater
Noida and Agra. Greater Noida also boasts of
India's rst 'Grand Prix' which marked it presence
on the International Motor Racing Circuit.
Moreover it is also emerging as a planned
industrial region and an educational hub.
FARIDABAD
Faridabad is the south-eastern district of Haryana
and the largest city of the state. Being an
industrial hub it has over 25,000 small-scale
industries. The Faridabad-Ballabgarh complex
employs over 500,000 people in approximately
15,000 manufacturing units. The region has
gained prominence due to its proximity to the
National Capital Territory (NCT) of Delhi, Gurgaon
and Greater Noida. For the ease of administration,
Faridabad district is divided into two sub
divisions viz. Faridabad and Ballabgarh.
The city is 25 km. from ISBT, Delhi and only 10 km.
from the Ashram Crossing on Mathura Road. The
Delhi-Mathura-Agra Road (NH-2) passes through
the city via Faridabad, Ballabgarh and Palwal.
Moreover, Faridabad is connected with
Delhi through the metro rail service which
currently terminates at the Delhi-Faridabad
border in Badarpur.
Faridabad houses several Indian and MNC
manufacturing companies. Motorcycles, tyres,
auto-ancillaries, refrigerators, tractors and
switch-gears are some of the major industries in
Faridabad. Larsen & Turbo (L&T), ABB, Goodyear,
Whirlpool, Eicher, JCB, Orient Fans, Bharat Gears,
Lakhani Shoes, Lafarge, Yamaha, Havell's,
Escorts and Castrol are some of the major
companies having their base in Faridabad.

TREND IN NCR
2007
2008
2009
2010
2011
2012*
171,261
Greater Noida is a new suburb located 20 km from

Noida in Gautam Buddha Nagar district of Uttar
Pradesh. Spread over 20,000 acres, it is situated
about 40 km south-east of New Delhi and forms a
part of the NCR. Greater Noida Industrial
Development Authority (GNIDA) is the nodal
agency for the overall development of this region.
Physical infrastructure of Greater Noida has been
crafted very meticulously by the GNIDA. Wide
roads along with service roads for all the major
arterial roads have been built. The Noida-Greater
111,649
78,222
59,176
46,605
Launches
51,288
INVESTMENT
advisory REPORT
Reliance Energy has

proposed a 1000 hectares
multi-product SEZ in
Ghaziabad
GHAZIABAD
Ghaziabad forming one of the major constituents
of the NCR is strategically located 20 km. to the
east of New Delhi. It is a planned industrial city
spread over 1,933 sq. km. Moreover, it also acts
as a main entrance for the state of Uttar Pradesh.
Ghaziabad Development Authority (GDA) is the
nodal agency for the overall development of the
city. The region has gained prominence due to its
proximity to the National Capital Territory (NCT) of
Delhi, Gurgaon, Noida and Meerut. The city's real
estate market witnessed high traction with an
improvement in the physical and social
infrastructure.
Two major arterial roads NH-24 and NH-58
passing through Ghaziabad, provide connectivity
with Lucknow and Badrinath respectively. To
decongest the existing highways, the GDA has
proposed the widening of the NH-24 from the
existing four lanes to six lanes. Further, metro rail
has enhanced the connectivity with other regions
of the NCR. Further, the connectivity within
Ghaziabad will improve with the expansion of the
existing metro rail from Dilshad Garden to New
Bus Stand located near the Meerut Road
crossing. Major residential micro-markets like
Vaishali, Indirapuram, Vasundhara and Raj Nagar
Extension have emerged along these highways.
Alwar is one of the nodes

for the Delhi-Mumbai
Industrial Corridor (DMIC)
and Dedicated Freight
Corridor (DFC)
Being an industrial hub it has over 14,000 smallscale industries, majorly manufacturing defence
products, railway wagons, heavy chains, bicycles
and glassware. Besides many large multi-national
companies, banks, IT and telecom services have
set up their base here. Reliance Energy's
proposed 1,000 hectares multi-product SEZ,
existing manufacturing units of Coca-cola and ITC
have further augmented demand for residential
as well as commercial real estate in Ghaziabad.
ALWAR
Alwar is a district in Rajasthan (a state in India)
located to the south-west of Gurgaon. It is spread
over 8,380 sq.km. of which 262 sq.km. forms a
part of the National Capital Region (NCR).
Rajasthan State Industrial Development and
Investment Corporation Ltd. (RIICO) is the major
nodal agency for the development of Rajasthan.
RIICO has been a catalyst for the overall industrial
transformation of the state. Over the years with
progressive industrial policies by the state
government, the district is now able to boast of
various industrial hubs. Some of the major
commercial areas are Bhiwadi, Tapookara,
Khushkhera and Neemrana. These commercial
areas house sectors like cement, automobile,
glass & ceramics, mines & minerals, textiles and

bio-tech industry. Moreover, this region is one of
the nodes for the Delhi-Mumbai Industrial
Corridor (DMIC) and Dedicated Freight Corridor
(DFC).
Rajasthan government has signed an MOU with
JETRO (Japanese External Trade Organization) for
setting up units in Neemrana. This region is
equidistant from Delhi and Jaipur and is also an
important part of the DMIC. These factors have
propped up the demand for commercial as well as
residential real estate in this region.
The Bhiwadi Industrial Hub is a mere 45 km. from
the Gurgaon city centre. Proximity to the city has
augmented demand for the residential as well as
commercial real estate in Bhiwadi. It alone
houses around 2,500 small, medium and large
industries including MNC industrial units. Some
of the major companies having their set up in
Alwar are Honda Siel Car, United Breweries,
Lafarge, Jaquar, Amtek India and Shree Cement.
The landscape of the NCR market has witnessed a
sea change in the last decade mainly on account
of new master development plans. Moreover,
construction of various yovers, underpasses,
expressways and Metro Rail has enhanced
connectivity with all the parts of the region. These
have also changed the way people commute,
especially due to the Metro Rail. New Delhi being
the National Capital is perennially the most
sought after destination for commercial as well as
residential real estate. Further, to support the
burgeoning growth of New Delhi, newer
destinations like Gurgaon, Noida and Greater
Noida emerged in the peripheral region. Many
companies were attracted to these newer
destinations which were meticulously planned
and had a proper blend of residential and
commercial real estate developments. The NCR
witnessed a huge inux of people mainly on
account of new jobs being created by the
companies. Besides the inclination of the people
to reside closer to their work-place gave a growth
impetus to the residential real estate demand.
Since 2007, the NCR residential real estate
segment witnessed the launch of over 500,000
units.
During 2007 and 2009, the NCR residential
market witnessed an average new launch of
60,000 units per year. The arithmetic of new
launches changed completely in the last 2-3 years
owing to numerous launches of mega townships
in new destinations like Noida and Greater Noida.
Since 2009, the average residential launch per
year has increased two-fold to 120,000 units.
INVESTMENT
advisory REPORT
Since 2009, the average

residential launch per
Real Estate Drivers
year has increased two-
fold to 120,000 units in

delhi NCR
Service Sectors
Rail Network
Road Network
IT/ITeS Sector
Auto Sector
Metro Corridor
Dwarka Expressway
Other Service Sectors
Other Manufacturing
Sectors
Monorail Corridor
Yamuna Expressway
Southern Periphral Road
KMP Expressway
REGULATORY AND MARKET ASPECT

NATURE OF LEVY
DELHI
GURGAON
NOIDA/
GREATER NOIDA
GHAZIABAD
Stamp duty
6% for Men
5% for Joint
4% for Women
7% for Men
6% for Joint
5% for Women
7% for Men
6% for Joint
5% for Women
8% + 2%
additional charges
Registration
1% of the sale deed
`15,000 (for
properties above
`2.5mn)
`22,000
1% of market
value or `30,000
whichever is less
Service Tax (on under

construction property)
3.09%
3.09%
3.09%
3.09%
MARKET NORMS
ASPECTS
DELHI
GURGAON
NOIDA/
GREATER NOIDA
GHAZIABAD

registration
Any time until

possession
Any time until

possession
Any time until

possession
Any time until

possession
Re-sale before
possession
Allowed
Allowed
Allowed
Allowed
First transfer is
sometimes free and
at times it is `100`150 per sq. ft.
`100-`150
per sq. ft.
`100-`150
per sq. ft.
Transfer charges
payable to builder
Loading
(as % of carpet)
12-20%
33-45%
20-45%
25-33%
Remarks
Speculative Market
Speculative Market
Speculative Market
Speculative
Market
INVESTMENT
advisory REPORT

165 km. Yamuna Expressway
is now open to public
Completion of Gurgaon-
ROAD NETWORK
LENGTH
OBSERVATIONS
Delhi-Gurgaon
Expressway
28 km.
In January-2008, an eight-lane access controlled toll expressway along the

NH-8 was started between Gurgaon and Delhi. Starting at Dhaula Kaun in
Delhi the expressway terminates on the outskirts of Gurgaon in Manesar.
Delhi-Noida Direct
(DND) Flyway
9 km.
Started in May-2001, this eight-lane access controlled toll expressway

provides connectivity between Delhi and the satellite city of Noida.
Yamuna Expressway
165 km.
The six-lane expressway connecting Greater Noida with Agra started in

August-2012. This access controlled toll expressway is a better alternative
to NH-2 which earlier used to handle all the Agra bound trac from the
NCR.
Noida - Greater
Noida Expressway
25 km.
A six-lane highway providing connectivity between the two satellite cities

of the NCR i.e. Noida and Greater Noida.
NH-1
22 km.
NH-1 is over 450-km., primarily connecting Delhi with Attari in Punjab. Of

this, only 22-km. form a part of Delhi. This entire stretch is an eight-lane
highway. It starts from Singhu Border in the northern district of Delhi and
terminates at ISBT Kashmiri Gate.
NH-2 (Delhi-Mathura
Road)
12 km.
NH-2 is a 1,465 km. highway providing connectivity between Delhi and

West Bengal. A 12-km. stretch in Delhi forming part of the NH-2 is called the
Delhi-Mathura Road. It connects Delhi with Mathura via Ashram Chowk.
NH-10
18 km.
NH-10 is a 403 km. highway providing connectivity between Delhi and

Fazilka district of Punjab. Starting from the CBD of Delhi this 18 km. stretch
of NH-10 terminates at Tikri Kalan, near the Haryana-Delhi border.
Mehrauli-Gurgaon
Road
19 km.
A 19 km. stretch along the NH-236 connects Mehrauli (South Delhi) with
the Gurgaon city centre.
Old DelhiGurgaon Road
5 km.
Starting from the Samalkha Crossing in New Delhi, this 5 km. road runs
parallel to Delhi-Gurgaon Expressway (NH8) providing connectivity
between Delhi and Gurgaon.
Gurgaon-Faridabad
Road
25 km.
A 25 km. toll highway starting from Gurgaon's Mehrauli Road in

Sikanderpur and ending at the junction of Pali Bhakri Road in Faridabad,
has been built by widening the existing two-lane road to four lanes.
BallabhgarhSohna Road
28 km.
A two-lane 28 km. toll highway connects Faridabad and Sohna, the two
major cities of Haryana. It starts from Ballabhgarh and ends at Rewari Palwal.
Delhi-Faridabad
Skyway
4.4 km.
The tolled three-lane expressway on NH-2 provides connectivity between

Delhi and Faridabad.
Faridabad Road has now

enhanced connectivity
between the two cities
EXISTING METRO RAIL NETWORK

METRO TRAIN
NETWORK
LENGTH
OBSERVATIONS
Delhi Metro Rail
190 km.
A well-connected six-lane Mass Rapid Transit System (MRTS) is laid across

the NCR.
Delhi Airport Metro

Express (DAME)
22 km.
It is a part of the Delhi Metro line starting from New Delhi Railway Station to
the Dwarka Sector 21 connecting the city centre with the Indira Gandhi
International Airport.
INVESTMENT
advisory REPORT

136 km. KMP Expressway will
connect important
CONNECTIVITY
LENGTH
OBSERVATIONS
CURRENT
STATUS
EXPECTED
COMPLETION
Kundli-ManesarPalwal (KMP)
Expressway
136 km.
An access controlled 4/6 lane expressway

connecting Kundli with Palwal via Manesar in
Haryana. It is proposed to connect important
industrial centres in Haryana, and intersects
four of India's busiest National Highways:
NH-1 near Kundli (Sonipat), NH-10 near
Bahadurgarh, NH-8 at Manesar (Gurgaon)
and NH-2 near Palwal (Faridabad)
Under
construction
2013-14
Dwarka
Expressway
18 km.
Under
construction
2014-15
Southern
Peripheral Road
(SPR)
14 km.
Under
construction
2013-14
Faridabad-NoidaGhaziabad (FNG)
Expressway
56 km.
Under
construction
Beyond 2016
industrial centres in
Haryana
Once completed the

Dwarka Expressway will
enhacne the connectivity
between Delhi and
Gurgaon
Rapid Metro Rail Gurgaon will connect the existing

Sikanderpur Metro station
with the NH-8
Dwarka Expressway also called the Northern

Peripheral Road (NPR) is an eight-lane
expressway, providing the shortest
alternative between the new growth centres
of Delhi and Gurgaon. The NPR starting from
Dwarka will connect Palam Vihar and the
forthcoming SEZs in Gurgaon to join the NH-8
near Kherki Dhaula.
A 90 m. wide SPR will connect Gurgaon and
Manesar with South Delhi through the
current MG Road and the Faridabad Highway.
The alignment of SPR (starting from MG
Road) connects NH-8 about 1 km. before the
Kherki Dhaula Toll Plaza. SPR has acquired
the status of national highway and has been
allotted number 236.
Connecting Faridabad, Noida and
Ghaziabad. A stretch of 8 km. out of 16 km.,
that falls under the jurisdiction of Noida
authority is complete.
UPCOMING METRO RAIL NETWORK

METRO TRAIN
NETWORK
LENGTH
OBSERVATIONS
CURRENT
STATUS
EXPECTED
COMPLETION
Rapid Metro Rail

Gurgaon(RMRG)
Phase I
6.1 km.
This intra-city Metro line connects the

existing Sikanderpur metro station with the
NH-8. This will provide the much needed
access into areas like Cyber City, Mall of
India, as well as to the NH-8.
Under
construction
2013-14
Rapid Metro Rail

Gurgaon (RMRG)
Phase II
12 km.
A 7 km. extension to the RMRG Phase I, has

been proposed. This will provide connectivity
between Sikanderpur and Sector 55-56 in
South Gurgaon.
Another 6 km. metro line has been planned
to provide connectivity upto Dwarka in the
north.
Bid invited
Beyond 2015
BadarpurFaridabad Metro
Corridor
14 km.
This corridor is an extension of the existing

Central Secretariat-Badarpur Metro Line. The
new corridor once completed will connect
Delhi with its satellite city of Faridabad. Ninestations have been planned on this corridor
extending upto YMCA Chowk in Faridabad.
Under
Construction
2016-17
INVESTMENT
advisory REPORT
Gurgaon accounts for 57%

of the office space stock
of NCR
Employment Indicators in the

National Capital Region
The economy of the NCR is driven by multiple
industries primarily by manufacturing, IT/ITeS,
small and medium enterprises, banking and
financial services and consulting. Delhi being the
national capital houses numerous administrative
offices of the Government of India. Recently,
Gurgaon and Noida have emerged as a
manufacturing and IT/ITeS hub.
IT/ITeS SECTOR
Over the past decade, Gurgaon, Noida and
Greater Noida have emerged as major IT/ITeS
centres of India. Proximity to Delhi, sound
infrastructure, cosmopolitan culture, availability
of skilled workforce and industry-friendly
government policies made it a favourable
destination among the IT/ITeS companies. The
thriving outsourcing industry provides direct and
indirect employment to over 500,000 people.
Prominent companies having operation in this
region are Genpact, Dell, Amdocs, Norte, HP,
Motorola, TCS, Alcatel, Siemens, HCL, Patni and
CSC.
Office space stock in
A good number of IT/ITeS SEZs have been

developed in Gurgaon, Noida & Greater Noida.
Over 22 major IT/ITeS companies are operational
in this region spread over 600 hectares of land. In
terms of geographical spread, nearly 60% of
these developments are concentrated around
Gurgaon, 35% around Noida, including Greater
Noida and merely 5% in Delhi.
Noida 21 mn.sq.ft.
Gurgaon has evolved as the major Peripheral
Business District of the NCR. It has over 55 mn.
sq.ft. of office stock which is primarily
concentrated in the DLF Cyber City (Phase I-V) and
micro-markets along the Golf Course Road. This
region houses many renowned tech-parks and
IT/ITeS SEZ. Micro-markets along the MG Road,
Golf Course Road, DLF Phase IV and Golf Course
Extension have evolved into self-sustaining hubs.
This is mainly on account of quality commercial
offices, superior residential developments and
well-developed organised retail markets.
Signature Towers, DLF Cyber City, Unitech
Infospace, Vatika Business Park and Global
Business Park are some of the notable
commercial buildings in Gurgaon.
Owing to its proximity to New Delhi, favourable
industrial policies and huge availability of land,
Noida has emerged as the preferred destination
for IT/ITeS companies. Over the last decade,
Noida has become a hub for BPOs (Business

Process Outsourcing) and KPOs (Knowledge
Process Outsourcing) services. It has over 21 mn.
sq. ft. of office stock which is predominantly
present in Sectors 29, 57 to 60, 62 and 63.
Moreover, many commercial offices and IT Parks
have been planned along the Noida Expressway
and Yamuna Expressway. This will further
augment the employment opportunities in this
region. A number of IT/ITeS companies like HCL,
Dell, Adobe Systems, IBM and AON Hewitt have
set up their base here.
The country's IT-ITeS sector during 2004-2011 has
grown at an annual rate of 22.5% to `1,474bn.
and is estimated to reach `3,000bn. by 2017. As
per NASSCOM, the IT/ITeS sector has created
tremendous job opportunities, generating direct
and indirect employment of nearly 2.8 mn. and
around 8.9 mn. respectively. It is estimated that
employment growth would be more than 14 mn.
(directly and indirectly) by 2015 and around 30
mn. by 2030. We expect the NCR to continue its
growth trajectory in-line with the country's IT/ITeS
growth. With the strengthening of global
economy, robust domestic fundamentals and
easy availability of skilled human capital the
IT/ITeS industry here is expected to grow
significantly in the coming years.
MANUFACTURING SECTOR
The manufacturing activity in the NCR is
concentrated in the sub-regions of Haryana, Uttar
Pradesh and Rajasthan. The manufacturing
industry in this region was boosted through the
creation of Industrial Zones and Special Economic

OFFICE SPACE STOCK
19.8%
3.4%
57.1%
19.6%
Delhi
Gt. Noida
Noida
Gurgaon
INVESTMENT
advisory REPORT
NCR OFFICE SPACE DYNAMICS

Oce space stock in NCR
101 mn. sq.ft.
160
140
120
Corporation (RIICO) were successful in developing

the Japanese zone in an expanse of 1,165 acres, in
Neemrana. The major Japanese companies that
have invested in Neemrana are Honda
Motorcycles and Scooters India Ltd., Nissin
Brakes, Mitsui Prime, TPR Autoparts and Daikin
Airconditioning.
100
80
60
40
20
Before 2008 2009 2010

2008
2011 2012E 2013E 2014E 2015E 2016E 2017E
Stock
Occupied Stock
48 mn. sq.ft. oce space

stock to be added during
2012-17
IT/ITeS and BFSI &

Consulting together
account for 70% of the
oce space in the NCR
Zones (SEZs). Rapid industrialization witnessed

in the NCR led to a shift from agriculture in the
composition of the economy (of this region). The
economy of the NCR is now skewed towards the
manufacturing and service sector. The NCR
manufacturing sector contributes about 30% to
the total output of the region. The major
manufacturing industries that fuel the NCR
economy are automobile, auto ancillary,
electronic, textile, switch-gear and farm
equipments. The region accounts for a
substantial part of the country's production of
farm equipment (tractors) -20%, motor-cycles
50% and cars - 60%. The NCR Planning Board has
envisaged an infrastructure investment of around
USD 25 bn. by 2021, for the comprehensive
development of the region.
Constructive measures taken by the respective
state governments in the NCR propelled the
overall growth of manufacturing industries.
Haryana State Industrial & Infrastructure
Development Corporation Limited (HSIIDC), Uttar
Pradesh Industrial Development Corporation
(UPIDC) and Delhi State Industrial & Infrastructure
Development Corporation Limited (DSIIDC) have
been instituted by Haryana, UP and Delhi
government respectively, to promote
industrialization. Consequently, many industrial
centres were created in NCR, like IMT Manesar
and Udyog Vihar in Gurgaon; Okhla Industrial
Complex, Wazirpur Industrial Complex, Rohtak
Road Industrial Complex, Kirti Nagar Packing
Complex, Bawana and Narella industrial complex
in Delhi. Besides, major industries were set up in
Ghaziabad and Gautam Buddha Nagar in UP. The
Rajasthan Industrial Development and Investment
Availability of huge tracts of land coupled with

favourable government policies lured many
manufacturing companies to this region.
Renowned manufacturing companies like Maruti,
Suzuki, Hero Motors, Honda, Toyota, Honda-SIEL,
Escorts and Samsung Telecommunications have
set-up their base here.
By virtue of being the National Capital Region,
there would be no dearth of demand for the
residential real estate sector here. IT/ITeS and
BFSI are the most dominant industries, moreover,
being the business capital it is home to the
corporate headquarters of several companies.
Currently the total oce stock in the NCR is about
101.48 mn. sq.ft. of which 83 mn. sq. ft. is
occupied resulting in a vacancy level of 18%. The
city's oce market clocked absorption of almost
9 mn. sq.ft. during 2011. The IT/ ITeS industry still
remains the key demand driver for oce space in
the NCR. The current situation indicates that Gurgaon
with 57% of the total occupied space in the region
has the highest density of oce space, implying
a large proportion of employment opportunities
emanating in the NCR. We estimate that the
occupied oce space in the region will go up by
47% during 2011-17. This growth in eect will
drive the residential markets in the city.

15%
30%
40%
15%
IT/ITeS
Manufacturing
BFSI & Consulting
Others
INVESTMENT
advisory REPORT
Ol
dG
ur
ga
on
Ro
ad
GURGAON MAP
Ico Chowk
oad
di R
tau
Pa
oa
d
d
oa
si
xten
course e
Golf
Pataudi R
Major Roads
Existing Metro
Under Construction Metro
Under Construction Dwarka Expressway
Airport
Railway Line
Benchmark location
Top destination
Employment Hubs
GREATER NOIDA MAP
Major Roads
Railway Line
Proposed Metro Rail
Noida
Greater Noida
Benchmark location
Top destination
Employment Hubs
INVESTMENT
advisory REPORT
119,404 residential
units launched in Gurgaon
during 2007-12
PREFERRED
ZONES IN
THE NCR
New Delhi being the national capital of the
country has always been the most preferred
destination in India. The dominance of the city in
business and bureaucratic oces has been the
major driver for real estate development. We
believe New Delhi as a destination will continue
with its dominance and be in demand
perpetually. The city is land-locked and as such
land is hardly available within the city limits.
Hence, to support the ever burgeoning growth of
the city, satellite cities like Gurgaon, Noida,
Ghaziabad, Faridabad and Greater Noida
emerged. However, we do not expect gains in all
the residential markets to be identical. We
believe residential markets of Gurgaon, Noida
and Greater Noida will grow at a higher
magnitude based on factors like employment
opportunities and infrastructure developments.
We have considered all these dynamics while
selecting the investment destinations.
A new residential belt has

emerged along the
upcoming Dwarka
Expressway
As a result of our analysis, we expect Gurgaon,

Noida and Greater Noida to be the biggest
beneciaries in the next 5 years. These zones are
primarily hubs for the IT/ITeS industry and we
anticipate growth momentum to accelerate in the
next ve years. This expectation is built on the
premise that it is a planned city and there is
visibility on the development of the infrastructure
projects. Relatively lower oce rentals, large
oce space options and well-developed
residential markets are factors that make this
zone a preferred place for setting up oces.
Going forward, development of the Dwarka
Expressway in Gurgaon, Metro connectivity in
Noida and Greater Noida will only augment the
cause.
also one of the most pronounced IT/ITeS

outsourcing and o-shoring hubs in the world.
The major prime residential and commercial
micro-markets of Gurgaon include MG Road, Golf
Course Road, Golf Course Extension Road, Sohna
Road and NH-8. These locations are wellconnected with New Delhi through the six-lane
NH-8 and MG Road, thereby providing quick and
easy access to the New Delhi International
Airport. Moreover, a 14 km. Southern Peripheral
Road (SPR) covers all the major developments in
this part of Gurgaon and connects MG Road and
Golf Course Extension Road with NH-8.
Golf Course Road is the most sought after
destination on account of its proximity to South
Delhi and hence boasts of the highest residential
property prices in Gurgaon. MG Road is a selfsustaining micro-market with the presence of a
well-developed orgainsed retail market, superior
residential development and quality commercial
oces. DLF Cybercity, Udyog Vihar, Signature
Towers, DLF Corporate Park, Spaze IT Park, Vatika
Business Park and Unitech Infospace are some of
the major commercial buildings. Golf Course
Extension Road is catching up with the Golf
Course Road with its quality residential
development.
A new residential belt has emerged along the
upcoming 18 km. Northern Peripheral Road
(NPR) or Dwarka Expressway. This 150 m. wide
road is expected to connect Dwarka and Palam
Vihar in New Delhi with NH-8 near Kherki Dhaula
in Gurgaon. This belt is predominantly a
residential area however a small proportion of it
is developed as a commercial area. Proximity to
the Dwarka Sub-city, Delhi International Airport
RESIDENTIAL PROJECT
LAUNCH TREND IN GURGAON
2007
2008
GURGAON
Gurgaon is a self-sustaining real estate market
comprising all the verticals of real estate viz.
residential, retail, commercial and industrial.
Major factors like availability of huge land
parcels, quality commercial properties, proximity
to the international airport, favourable tax
policies and access to the talented workforce
lured many corporates to Gurgaon. It is not only
an industrial and nancial centre of Haryana but
2009
2010
2011
2012*
26,356
23,439
24,307
19,870
16,492
8,939
Launches
INVESTMENT
advisory REPORT
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF GURGAON

Gurgaon witnessed
absorption of 98,713 units
during 2007-12
2007 2008
2009
2010
2011
2012*
17.3%
11%
140,000
No. of Units
120,000
8.1%
100,000
80,000
7.7%
60,000
40,000
7.3%
3.3%
20,000
Stock
IMT is a 1,750-acre ultra

modern Integrated
Industrial Park
% of Unsold Units
and proposed diplomatic enclave in Dwarka

Phase II attracted many developers to this micromarket. The under-construction Rapid Metro Rail
Gurgaon (RMRG) is proposed to link various
micro-markets including Mall of India and DLF
Phase II & III, thereby enhancing connectivity
within Gurgaon. This is expected to augment
demand for residential real estate in these micromarkets. Developers like Sobha, BPTP, Indiabulls,
Raheja and Mahindra Life Spaces have launched
projects in this belt.
huge demand for residential real estate. Major

developers like DLF, Godrej, Anantraj and Emaar
MGF have well-perceived these developments
and strategically launched their projects in
Manesar. A 135 km. Kundli-Manesar-Palwal (KMP)
Expressway will further augment demand for the
residential real estate in Manesar.
Manesar located in the south Gurgaon region is a

major industrial hub. Industrial Model Town (IMT)
a Haryana government initiative, has given a
llip to commercialization in Manesar. Renowned
manufacturing companies like Maruti, Suzuki,
Hero Motors, Honda, Toyota and Samsung
Telecommunications are already present in
Manesar. Moreover, Manesar has become the
most preferred destination for many leading
companies including major IT/ITeS companies.
This, coupled with the Reliance SEZ will lead to
huge employment generation thereby leading to
As on September-2012, Gurgaon residential market

witnessed a total launch of 119,404 units since
2007. Moreover, owing to enhanced connectivity
and infrastructure development, the zone
witnessed absorption of 98,713 units during the
same period resulting in 17.3% remaining unsold.
Over the last four years the average annual
absorption of residential units in Gurgaon was
20,700. The launch momentum continued in
2012, as the region witnessed the launch of
16,492 units during the rst nine months of 2012
(9m 2012).
Hence, based on the above factors we anticipate

Gurgaon market to witness good appreciation
over the next 4-5 years.
Existing Infrastructure
DELHI-GURGAON EXPRESSWAY
Delhi Gurgaon Expressway is the most
breathtaking development in India's transport
history. It provides a free-owing alternative to
the congested NH-8. Since its opening in January
2008, this 8 lane 28 km. access controlled toll

expressway has enhanced the connectivity
between Delhi and the commercial hub, Gurgaon.
Starting from Dhaula Kaun in Delhi the
expressway terminates at Manesar and has 11
yovers and underpasses. The expressway has
four toll plazas including the 36 lane toll plaza at
the Delhi-Haryana Border.
INVESTMENT
advisory REPORT
28 km. Delhi-Gurgaon
Expressway and 25-km.
Gurgaon-Faridabad Link
Road are the major
arterial roads
GURGAON-FARIDABAD ROAD
LINK
A 25 km. toll highway starting from Sector-54 of
Gurgaon and ending at the junction of Pali Bhakri
Road in Faridabad, has been built by widening
the existing two-lane road to four lanes.
toll expressway has enhanced the connectivity
between Delhi and the commercial hub, Gurgaon.
Starting from Dhaula Kaun in Delhi the
expressway terminates at Manesar and has 11
yovers and underpasses. The expressway has
four toll plazas including the 36-lane toll plaza at
the Delhi-Haryana Border.
Upcoming
Infrastructure
DWARKA EXPRESSWAY
Upcoming eight-lane 18 km.

Dwarka Expressway will aid
in decongesting the
existing Delhi-Gurgaon
Expressway
Dwarka Expressway also called the Northern

Peripheral Road (NPR) is an eight-lane 18 km.
expressway, providing the shortest alternative
between the new growth centres of Delhi and
Gurgaon. This 150m. wide road will start from
Dwarka Sector-21 and end at NH-8 (Gurgaon
Expressway) near Haldiram. This stretch has been
planned as an alternative link between Delhi and
Gurgaon, thereby decongesting the DelhiGurgaon Expressway (NH-8). The road will also
provide connectivity with the much-touted
Reliance-HSIIDC SEZ besides the Garhi Harsaru
Dry Depot. The new link would be parallel to the
expressway till it merges ahead of the IFFCO
Chowk. The proposed expressway will touch 16
new nearby residential colonies and would also
touch a commercial corridor. The project is underconstruction and is expected to be complete by
2014-15.
Extending further, a 13 km. Rapid Metro Rail have

been planned under RMRG Phase II, of which, a 7
km. line will provide connectivity between
Sikanderpur and Sector 55-56 in South Gurgaon
and another 6 km. rapid metro rail will connect
with Dwarka in the North.
KMP EXPRESSWAY
A 135 km. access controlled expressway
connecting Kundli with Palwal via Manesar in
Haryana is under construction. It will connect
important industrial centres of Haryana and
intersect four of India's busiest National
Highways: NH-1 near Kundli (Sonipat), NH-10 near
Bahadurgarh, NH-8 at Manesar (Gurgaon) and
NH-2 near Palwal (Faridabad). The project is
expected to be complete by 2013-14.
Employment
Indicators in
Gurgaon
Gurgaon is an industrial and nancial centre of
Haryana. It has now emerged as one of the
prominent destinations for IT/ITeS outsourcing
and o-shoring hubs, mainly due to its proximity
to the national capital coupled with huge
availability of quality commercial properties and
favourable government policies. The commercial
oce space is concentrated in North Gurgaon,
GURGAON OFFICE SPACE

DYNAMICS
80
70
RAPID METRO RAIL GURGAON

(RMRG)
60
50
40
Promoted by DLF, this is the rst metro by any

private company in the NCR. A total of 20 km.
rapid metro rail has been planned which will
provide connectivity between Sikanderpur in
Gurgaon with NH-8. A 6 km. rapid metro rail
under Phase-I is in advanced stages of
construction. This will provide the much needed
access into areas like Cyber City, Mall of India
and NH8. RMRG Phase-I is expected to commence
commercial operations by 2013-14.
30
20
10
BeFORE 2008 2009 2010

2008
Stock
Occupied Stock
2011 2012E 2013E 2014E 2015E 2016E 2017E
INVESTMENT
advisory REPORT
Gurgaon has emerged as

one of the prominent
destinations for IT/ITeS
outsourcing and oshoring hubs
majorly around DLF Phase I-V, Sohna Road and

Golf Course Road while the industrial hub is
concentrated in South Gurgaon region of
Manesar. Renowned manufacturing companies
like Maruti, Suzuki, Hero Motors, Honda and
Toyota have their base in Manesar.Major builders
who have planned residential projects in Gurgaon
are DLF, Anantraj, Godrej, Unitech and Emaar
MGF.
Currently Gurgaon has 55 mn. sq. ft. of oce

space of which 40 mn. sq. ft. is occupied. We
expect Gurgaon oce space to post an
encouraging growth for the next ve years until
2017. While the oce stock will increase by 33%,
the occupied oce space will go up by a stellar
39% by 2017. Consequently the vacancy rate will
come down from the current level of 26.5% to
22.1%. We foresee that the employment
generation happening in the service industry will
feed the growth of residential markets in the
zone.
Employment Hubs in Gurgaon

Gurgaon total oce
PROJECT NAME
LOCATION
MAJOR COMPANIES
space stock is 55 mn. sq.ft.
BPTP I Park
Udyog Vihar
Cisco, Deloitte
DLF Cyber City
DLF Cyber City
BCG, Cannon, Emerson, Google, KPMG
Global Foyer
Golf Course Road
Ciesta Hospitality, Stryker Hospitality
Spaze I-Tech Park
Sohna Road
Capgemini, Aircel, Shoppers Stop, Yamaha Music
JMD IT Park
Sohna Road
Convergys, Global Expo
of which 40 mn. sq. ft. is

occupied
Gurgaon to witness
another 22.3 mn. sq.ft. of
new oce supply by 2017
INVESTMENT
advisory REPORT
18,649 residential
units launched in the
micro-markets along the
Dwarka Expressway since
2007
DESTINATION
DWARKA EXPRESSWAY
(Sec 103-106, 109-113)
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF

DWARKA EXPRESSWAY (Sec 103-106, 109-113)
2007 2008 2009 2010
2011
2012*
No. of Units
31%
15.6%
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
8.4%
6.5%
4.2%
0.3%
Stock
77%
OF THE RESIDENTIAL
UNITS WAS launched IN
the last 21 months
% of Unsold Units
A new residential belt has emerged along the

upcoming Dwarka Expressway or Northern
Peripheral Road (NPR). The 18 km. expressway will
provide an alternative link between Delhi and the
commercial hub, Gurgaon. Based on its proximity
to the Dwarka Sub-city (Delhi) and to the city
centre of Gurgaon, the expressway can be subdivided into two parts viz. North and South. The
northern stretch starts from Sector 103-106, 109113 in close proximity to Dwarka and ends at
Sector 99 near the turn where the NPR connects
with the NH8. The southern stretch begins from
Sector 37D the far end of the NPR and terminates
near Manesar on the NH-8. The south stretch
comprises Sectors 37, 37C, 37D, 83, 84 and 88.

This entire belt is predominantly a residential
area with a small portion of commercial and
industrial developments.
Though the entire belt will immensely benet
from the new link road between Gurgaon and
Delhi, we anticipate the north region (Sec 103106, 109-113) of the expressway to benet more
compared to the south. We base our argument
primarily on account of north region's proximity to
Dwarka Sub-city, Delhi International Airport and
the proposed diplomatic enclave in Dwarka Phase
II.
RESIDENTIAL
PROJECT LAUNCH TREND IN
DWARKA EXPRESSWAY
PRICE FORECAST
2007
2008
2009
2010
2011
2012*
2012
2017E
`17,300
7,456
6,839
`10,200
`10,200
`4,900
230
1,374
694
2,146
141
Launches
Dwarka Sec. 22-23
Dwarka Expressway
INVESTMENT
advisory REPORT
PRICE MOVEMENT
Annual average
absorption rate in the
Dwarka Expressway 3,180
units
18,000
16,000
14,000
40%
12,000
10,000
52%
8,000
6,000
4,000
2,000
2007
2008
Dwarka Sec. 22-23
2010
2009
Dwarka Expressway
2011
2012
2013E 2014E 2015E 2016E 2017E
Discount Margin
its proximity to Dwarka

Sub-city, IGI Airport and
the proposed diplomatic
enclave in Dwarka Phase II
destination has witnessed an average absorption

of 3,180 units per annum between 2009 and 2011.
The rate of unsold inventory climbed to 31% as
on Q3 2012, however, understanding the long
term potential of this destination the developers
continued launching new projects. The
destination witnessed the launch of 7,456 units in
the rst nine months of 2012 as against 6,839 units
launched throughout 2011.
CONNECTIVITY TO IMPORTANT LOCATIONS FROM SEC.111

* By road
AIRPORT
IGI
ROAD
MG
17
km
NESAR
MA
11
mins
28
km
9
km
6
mins
13
km
OL
F CO SE RO
UR
Distance
Travel time
17
mins
29
km
8
mins
CO
LA
NNA
UGHT P
CE
primarily on account of
AD
Selected destination
Developers started taking keen interest in this

locality only in 2009. Since 2009, the Northern
Region of this belt has witnessed the launch of
17,815 residential units and 92% of these were
launched during the last thirty-three months. The
destination witnessed healthy sales primarily on
account of euphoria associated with the new
connectivity. However, the sale momentum has
subsided for the projects launched in 2012. We
believe this is just an aberration, as the
18
mins
INVESTMENT
advisory REPORT
Major oce markets like

Golf Course Road and MG
Road are just 13 km. and 9
km. respectively from Sec.111
of Dwarka Expressway
At present, Sec 111 on the Dwaraka Expressway is

connected with the important NH-8 through the
Major Sushil Aima Marg, which also connects it
with the Urban Extension Road II (UER-II) that
goes towards the Indira Gandhi International
Airport. Major oce micro-markets like Golf
Course Road and MG Road are just 13 km. and
9 km. from Sector 111. Going forward, the under
construction 18 km. Dwarka Expressway will
provide an alternative road to the existing
congested Delhi-Gurgaon Expressway. Connect-ivity between the two cities will be enhanced
once this expressway is in place.
Dwarka Sec 22/23 is in close proximity to the
selected destination and is also an established
residential micro-market with prices averaging
at ` 10,200/sq. ft. However, the price in
Dwarka Expressway Sec 103-106, 109-113 is
around `4,900/sq. ft., which is a 52% discount.
Based on our investment rationale as discussed
above we expect prices to rise to `10,200/sq. ft.
thereby reducing the discount to 40% by 2017.
Investment
Options in Dwarka
Expressway
3BHK
1,900 - 3,447
950 - 1,460
2BHK
9.3 - 16.9
4.7 - 7.2
SELECT PROJECTS
Project
Sector
Developer
No. of Units
Launch Date
Completion Date
Vedas
108
Raheja Builders
250
Nov-10
Dec-13
The Residency
103
The Landmark Group
500
Dec-10
Mar-14
to increase to `10,200/sq.ft.
Centrum
103
India Bulls
750
Mar-09
Mar-13
from the current levels
Aura Phase III
110
Mahindra Life Spaces
110
Apr-11
Mar-14
Price in Dwarka Expressway
of `4,900/sq.ft. - a 108% price

appreciation in 5 years
INVESTMENT
advisory REPORT
Extension
GREATER
NOIDA
127,424 residential units
Greater Noida is a new suburb located 20 km from

Noida in Gautam Buddha Nagar district of Uttar
Pradesh. Spread over 20,000 acres, it is situated
about 40 km. south-east of New Delhi and forms a
part of the NCR. Greater Noida Industrial
Development Authority (GNIDA) is the nodal
agency for the overall development of this region.
Physical infrastructure of Greater Noida has been
crafted very meticulously by the GNIDA. Wide
roads along with service roads for all the major
arterial roads have been built. It also boasts of
India's rst 'Grand Prix' which marked its
presence on the International Motor Racing
Circuit.
Connaught Place (CBD) is a

mere 18 km. from Noida
launched since 2007
Builders allowed to
resume construction in
Noida Extension
Greater Noida is well connected with Noida and

Agra. A 25 km. six-lane Noida-Greater Noida
Expressway connects Sector 15 of Noida with the
Alpha Commercial belt of Greater Noida.
Moreover, a 165 km. Yamuna Expressway also
passes through the city providing connectivity
with Agra via Mathura. A 35 km. Metro line has
been approved by the Noida and Greater Noida
Authority that will connect new sectors of Noida,
Greater Noida, Ghaziabad and South Delhi. The
metro rail would provide connectivity between
Noida City Centre (sector 32) and Greater Noida.
Noida Extension, Noida Sectors 71, 72, 78 and 62
are some of the major nodes of this metro line.
Greater Noida is emerging as a planned industrial
region, an educational hub and also as an
aordable housing option. Honda Siel Cars,
Daewoo Motors, Yamaha Motors, Delphi
Automotive, Samsung India, LG, Wipro, Videocon
and TEVA Pharmaceuticals are some of the major
companies that have set up their base here. It
also has some of the most prestigious
engineering and management colleges like Birla
Institute of Management and Technology,
Apeejay Institute of Technology, Noida Institute of
Engineering and Technology, Noida International
University and IEC College of Engineering.
Residential micro-markets have evolved along the
Yamuna Expressway and some of the prime
residential sectors are Alpha, Beta, Chi, Delta and
Pi.
Recently, Noida Extension has emerged as an
aordable housing hub of the NCR. Though part
of Greater Noida, it is nomenclature as 'Noida
Extension' as it is in close proximity with the
Noida City Centre. This helps to dierentiate it
RESIDENTIAL PROJECT
LAUNCH TREND IN GREATER NOIDA
2007
2008
2009
2010
2011
2012*
82,150
23,619
6,121
3,035
Launches
5,638
6,860
from both Noida and Greater Noida. The CBD of

Connaught Place is only 18 km. from this region.
With the upcoming metro line the accessibility of
this destination will improve. Moreover, unlike
Gurgaon, this region has ample groundwater
coupled with a continuous supply from the
Ganges. Spread over 3,635 hectares, many real
estate developers have launched huge townships
like Amrapali Group's Leisure Park, Leisure Valley,
Supertech's Eco Village-I & II, Earth
Infrastructure's Earth Sapphire Court and
Antriksh's Antriksh Forest.
As on September-2012, Greater Noida has witnessed a
total of 127,424 residential units being launched
since 2007. Of these, a total of 79,746 units have
been absorbed resulting in 37.4% remaining unsold.
However, in the year 2010 Greater Noida
witnessed the highest number of launches and
absorption owing to its connectivity with Noida
City Centre and aordable pricing of the
apartments. Recently the land row problem has
been resolved and developers have been allowed
to commence construction.
INVESTMENT
advisory REPORT
RESIDENTIAL DEMAND SUPPLY ANALYSIS OF GREATER NOIDA

Recently completed
Yamuna Expressway has
reduced the travel time to
2007 2008
Agra to less than 2 hours
2009
2010
2011
2012*
37.4%
36.3%
140,000
29.8%
No. of Units
120,000
100,000
80,000
22.2%
60,000
21.4%
40,000 18%
20,000
Stock
% of Unsold Units
YAMUNA EXPRESSWAY
A 165 km. six-lane expressway connecting Greater
Noida with Agra started in August-2012. This
access controlled toll expressway is a better
alternative to NH-2 which earlier used to handle
all the Agra bound trac from the NCR. The
expressway has reduced the travel time between
Noida and Agra from 5 hours to less than 2
hours.It will relieve trac congestion on the NH-2
(which runs through the cities of Faridabad,
Ballabgarh and Palwal) and Old Grand Trunk Road
(NH-91).
Metro Rail has been

proposed for connecting
Eco Village via Sector 71
NOIDA - GREATER NOIDA

EXPRESSWAY
A 25 km. six-lane expressway providing
connectivity between the two satellite cities of
the NCR i.e. Noida and Greater Noida is
operational. It starts at Sector 15A of Noida and
ends at the Alpha commercial belt in Greater
Noida. This expressway has reduced the travel
time between the commercial centres and
residential complexes of Greater Noida with the
Delhi CBD.
Upcoming Infrastructure
FARIDABAD-NOIDA-GHAZIABAD
(FNG) EXPRESSWAY
A 56 km. expressway meant to connect FaridabadNoida-Ghaziabad had been oated way back in
1993 the Haryana government did not nd this
feasible and scrapped the idea in 1998. However,
construction has begun on a stretch of 16 km.
which falls under the jurisdiction of Noida
Authority. As on date an 8 km. stretch has been
constructed. This stretch is an important link
between Noida and Ghaziabad. Currently, the
congested NH-24 is the only link between the two
cities and once the 16 km. stretch is complete, it
will provide smooth and hassle free travel
between Noida and Ghaziabad. This road will also
provide speedy access to Greater Noida.
METRO LINE
The City Centre Metro line will be extended till Eco
Village via Sector 71. Out of the planned four
stations two will be in Noida Extension. The Metro
terminal will be near Eco Village-III, which is
around 3 km. from Noida Extension roundabout.
In addition to Noida Extension, group housing
projects are also being constructed in various
areas of Noida, especially from Sectors 74 to 79,
Sectors 112 and 119. The Metro extension will even
cater to these areas where nearly 50 housing
projects are being constructed. This would be the
rst Metro Rail connecting Noida Extension with
Delhi-NCR.
INVESTMENT
advisory REPORT
Greater Nodia has

attracted a total
industrial investment of
Greater Noida
`100 bn. from domestic as

well as multinational
companies
EXISITING OFFICE SPACE

st ock in Greater Noida 4 mn. sq .ft
expect it to increase to 9
mn. sq.ft. by 2017
Greater Noida is emerging as one of the most

remarkable models for the industrial
infrastructure. It is regarded as the most favoured
location for industrial development owing to its
favourable government policies, huge availability
of land tracts and talented workforce. The region
has attracted a total industrial investment of
`10,000 crore from domestic as well as multinational companies. Honda Siel Cars, Daewoo
Motors, Yamaha Motors, Delphi Automotive,
Samsung India, LG, Videocon and TEVA
Pharmaceuticals are some of the major
companies that have set up their base here.
Greater Noida is emerging as an IT/ITeS hub,
mainly due to conscious measures taken by the
Greater Noida Industrial Development Authority
(GNIDA). Taking cognizance of the IT industry
growth traction, the GNIDA is oering the best of
the infrastructure including uninterrupted power
as well as water supply. The sectors in the IT
industry that have witnessed remarkable growth
in Greater Noida are IT services, software
products, IT enabled Services and e-commerce
business. Greater Noida is poised to develop as
the next major IT destination with a number of
planned or upcoming IT & Bio tech parks such as
Wegmans Industries, Amprapali Tech park, Wipro
IT Park, Globus IT Park, Habitech Tech Park and
Kalika Infotech.
MNCs have got an invigorating platform as the
government is encouraging their presence here.
World-class infrastructure coupled with investor
friendly policies have lured many MNCs to set-up
base in Greater Noida. Sectors like Alpha, Beta,
Gamma, Swarn Nagari, NRI City and Golf Link 1
have emerged as commercial business districts.
Currently Greater Noida has 4 mn. sq. ft. of oce
space of which 2.4 mn. sq.ft. is occupied. We
expect Greater Noida oce space to witness an
encouraging growth for the next ve years until
2017. While the oce stock will increase by 122%,
the occupied oce space will go up by a
spectacular 141% by 2017. Consequently the
vacancy rate will come down from the current
level of 40.5% to 35.4%. We foresee that the
employment generation happening in the service
industry will feed the growth of residential
markets in the zone.
GREATER NOIDA OFFICE

SPACE DYNAMICS
10
9
8
7
6
5
4
3
2
1
BeFORE 2008 2009 2010

2008
Stock
Occupied Stock
2011 2012E 2013E 2014E 2015E 2016E 2017E
INVESTMENT
advisory REPORT
80,246 residential units

launched in Noida
Extension since 2010
DESTINATION
NOIDA EXTENSION
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF NOIDA EXTENSION
No. of Units
2010
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Stock
launched in the year 2010
2012*
38.4%
38.6%
30.7%
% of Unsold Units
Noida Extension comprising Sectors 1, 2, 4, 16B,

16C, 16D and Knowledge Park V have emerged as
the most sought after destination. Though, Noida
Extension is a part of Greater Noida, it is known
as 'Noida Extension' on its close proximity with
the Noida City Centre. This helps to distinguish it
from both Noida and Greater Noida. It is an
upcoming region for Greater Noida situated in
close proximity to Noida. Noida Extension is only
7 km. from Noida City Centre and is adjacent to
Noida. Sectors 18, 32 or 62 in Noida are barely 515 minutes from Noida Extension. Moreover, the
CBD of Connaught Place is only 18 km. from this
region. With the upcoming metro line the
accessibility will be enhanced.
81% of these were
2011
The Yamuna Expressway, F1 Car Racing Circuit

and Noida-Greater Noida Expressway have
completely changed the picture of this region.
Sound infrastructure, aordable pricing and

proximity to Noida made this region the most
sought after destination in the NCR. Based on the
above factors, many real estate developers have
launched huge townships like Amrapali Group's
Leisure Park, Leisure Valley, Supertech's Eco
Village and Antriksh's Antriksh Forest.
Developers started taking keen interest in this
locality only in 2010. Since 2010, Noida Extension
has witnessed the launch of 80,246 residential
units and 81% of these were launched in the year
2010. The entire region has come to a standstill
due to the land acquisition problem; as a result
this region witnessed very few launches of
residential projects between 2011 and Q2 2012.
However, in August 2012, it received the approval
to continue with its construction from GNIDA.
Hence, we anticipate launches in this region to
regain its 2010 momentum.

TREND IN NOIDA EXTENSION
PRICE FORECAST
2010
2011
2012*
2012
2017e
`11,260
64,890
`6,975
`3,200
14,890
Launches
1,271
Noida Sec. 50-52
`6,760
Noida Extension
INVESTMENT
advisory REPORT
PRICE MOVEMENT
Prices in Noida Extension
to increase to ` 6,760/ sq.ft.
from the current levels

of `3,200/sq.ft.
12,000
10,000
40%
8,000
54%
6,000
4,000
2,000
2010
2011
Noida Sec. 50-52
2012
2013E
2014E
2015E
2016E
2017E
Discount Margin
Noida Extn.

The destination witnessed healthy sales in 2010
primarily due to proximity to Noida and aordable
pricing. However, the sale momentum had slowed
down during 2011 and Q2 2012 for the reason
mentioned above. With a solution to the land
acquisition problem we believe this destination
to gain traction. The rate of unsold inventory
climbed to 38% as on Q3 2012. However, taking
cognizance of the situation we believe this
destination has a huge potential to grow as a
residential hub and the unsold inventory

percentage is anticipated to come down.
Noida Sectors 50-52 are the established micromarkets of Greater Noida with prices averaging at
`6,975/sq. ft. However, the price in Noida
Extension is around `3,200/sq. ft., which is a
54% discount. We expect this discount to narrow
down to 40% by the end of 2017 resulting in
prices moving up to `6,760/sq. ft.
Investment Options in Noida Extn.

1,995 - 3,400
4BHK
6.4 - 10.9
1,480 - 2,100
3BHK
4.7 - 6.7
895 - 1,060
2BHK
2.9 - 3.4
410 - 580
1BHK
1.5 - 2.2
SELECT PROJECTS
Project
Sector Developer
No. of
Units
Completion
Date
Eco Village -I 1
Supertech
5,000
Apr-15
Gaur City II 16C
Gaursons
3,000
Dec-14
Terrace
Homes
Amarpali
Group
3,000
Oct-14
Eco Village
II & III
16B
Supertech
8,000
Sep-14

INVESTMENT
advisory REPORT
Over 40,000 acres have

identied for
constructing 'Global City'
Hidden Gem
Neemrana
in Neemrana-Behror area
CONNECTIVITY TO IMPORTANT LOCATIONS

* By road
CON
T
UGH PLAC
NA
E L HI
ED
72
km
DELHI INTERNATIONAL AIRPORT
93
km
55
km
AD, GURGA
RO
ON
MG
BHIWADI
117
km
106
km
Distance
Neemrana is situated in North-Eastern Rajasthan

and falls under the National Capital Region (NCR)
of Delhi. It is located close to the NH-8 which
forms a part of the Golden Quadrilateral.
Currently, there is absolutely no mass rapid
transport and as such the region has extremely
poor inter zone connectivity. The NH-8 is the only
major arterial road providing connectivity with
important regions in the NCR. The real estate
development in Neemrana is driven by the fact
that it is one of the major nodes of the Dedicated
Freight Corridor (DFC) and Delhi-Mumbai
Industrial Corridor (DMIC). Recently, the
Rajasthan government allotted 2,500 acres to the
Japanese companies to set up their operations
here. This region is known as the Japanese
Investment Zone. Moreover, the government is
also setting up an Export Promotion Industrial
Park (EPIP) in an area of more than 200 acres.
The destination is at a distance of approx. 55 km.,
72 km. and 93 km. from the prominent markets of
the NCR Bhiwadi, Manesar and MG Road,
Gurgaon respectively.
Following are the factors that make Neemrana the

most sought after investment destination:Proximity to the Golden Quadrilateral, NH-8
and the Dedicated Freight Corridor
Proximity to Delhi International Airport (106
km.) also oers good connectivity with
Neemrana. Besides, an independent airport
complex is also proposed to be developed
here.
The government has already identied and
designated land for constructing 'Global City
over 40,000 acres in the Neemrana-Behror
area. Once completed this region will have a
capacity of housing one million people. The
Cyber City, Medi-City, Knowledge City,
Entertainment City, SEZ, World Trade City and
Bio-diversity Park have also been planned
here.
.
.
.
Additionally, widening of the NH8 on this route

coupled with construction of yovers will
enhance the connectivity of Neemrana with other
industrial hubs of the NCR. Owing to the above
factors we anticipate Neemrana should benet
immensely and provide superior investment
returns over a 10 year time horizon.
INVESTMENT
advisory REPORT
An Integrated Freight
Complex covering an area
of 392 hectares has been
Hidden Gem
Narela
planned in Narela
CONNECTIVITY TO IMPORTANT
LOCATIONS
* By road
13
km
Distance
A Metro line has been

planned under DMRC Phase
IV connecting Narela to
Jahangirpuri
DELHI INTERNATIONAL AIRPORT
CONNAUGHT PLACE, DELHI
5
km
10
km
MANESAR (VIA AJMER ROAD)
KUNDLI
8
km
Narela is situated in North-West Delhi and forms

the border of Delhi state with Haryana. The
'Narela Industrial Area', started developing in
early 1980s and today is one of the important
industrial complexes in Delhi. Moreover, Narela
spread over 7,464 hectares was planned as a
Sub-city by Delhi Development Authority (DDA) in
1990s, after Rohini Sub-city and Dwarka Sub-city.
Currently, there is no mass rapid transport and as
such the region has extremely poor inter zone
connectivity. The NH-1 is the only major arterial
road providing connectivity of Narela with Delhi
city centre. However, Delhi Metro Rail Corporation
(DMRC) under Phase IV has planned to extend the
existing Yellow Line (currently running between
HUDA and Jahangirpuri) up to Narela. Further,
Narela is located 10 km. from the Kundli node of
the KMP Expressway (135 km. expressway), once
completed this will provide access to the major
industrial hubs like Manesar and Palwal.
The destination is at a distance of approx. 10 km.,
30 km. and 44 km. from the prominent markets of
Kundli, Connaught Place and Delhi Airport
respectively.
Following are the factors that make Narela the
most sought after investment destination: An Integrated Freight Complex covering an area
of 392 hectares has been planned. It will
accommodate the wholesale trade, district
centre, metropolitan transport centre and ISBT.
Another major industrial area has been
proposed at Bawana accommodating 20,000
industrial plots.
A Metro line has been planned under DMRC
Phase IV. This will be an extension of the
existing Yellow Line from Jahangirpuri.
We anticipate Narela to benefit immensely based
on the above mentioned factors. We expect it to
provide a good return on investment over a 10
year time horizon.
INVESTMENT
advisory REPORT
600 acres allotted to

Maruti Udyog by HSIDC for
their expansion plan
Hidden Gem
MANESAR
LOCATIONS
CON
L HI
48
km
DELHI IN
ER
N
IRPORT
26
km
LA
26
km
P
GHT LACE,
AU
DE
COURSE RO
LF
AD
GO
* By road
A
AT ION
Distance
A 135 km. KMP Expressway

will augment demand for
the residential real estate
Manesar is situated on NH-8, the Delhi-Jaipur

Road, in south Gurgaon. It is emerging as one of
the biggest industrial belts of the NCR. This
industrial belt comprises Gurgaons industrial
corridor, Industrial Model Town (IMT) Manesar
and Gurgaons SEZ belt. Currently the region does
not have any mass rapid transport raising
concerns regarding inter zone connectivity.
Availability of vast tracts of land, wide roads and
favourable government policies are the major
drivers for real estate developments in this
destination.
in Manesar
Manesar has tremendous opportunities to grow
as an industrial hub and the Haryana State
Industrial Development Corporation (HSIDC) is
not leaving any stone unturned in making it a
destination worth reckoning. Industrial Model
Town (IMT) a Haryana government initiative, has
given a fillip to commercialization in Manesar. It

has been divided into four phases. In Phase I,
HSIDC developed 1,750 acres of land; the
development of Phase II and Phase IV are in
progress. HSIDC has allotted around 600 acres in
Phase III to Maruti Udyog for their expansion
project.
Renowned manufacturing companies like Maruti,
Suzuki, Hero Motors, Honda, Toyota and
Samsung Telecommunications are already
present in Manesar. Moreover, Manesar has
become the most preferred destination for many
leading companies including major IT/ITeS
companies. This, coupled with the Reliance SEZ
will lead to huge employment generation thereby
leading to a huge demand for residential real
estate. A 135 km. Kundli-Manesar-Palwal (KMP)
Expressway will further augment demand for the
residential real estate in Manesar.
However, distance to the CBD continues to remain
a major concern along with the slow development
of arterial roads. Further, the bottleneck at the
second toll plaza at Kherki Dhaula impacts the
travel time to and from Manesar. Uninterrupted
power supply continues to be a challenge and
with the irregular electric supply, companies are
forced to invest hugely in power back-up
arrangements.
Time to travel to and from Manesar will reduce
considerably post commencement of the KMP and
Dwarka Expressway. All these elements are
expected to spur investments, primarily in the
automobile and ancillaries sector in Manesar.
Hence, we anticipate Manesar to emerge as the
most sought after destination providing a good
return on investment over a 10 year time horizon.
INVESTMENT
advisory REPORT
Mumbai
The Mumbai Metropolitan Region (MMR) is spread over an area of 4,355

sq. km. that comprises 468 sq. km. of Mumbai city along with certain
parts of Thane and Raigad district, which constitute the remaining 3,887
sq. km. The Mumbai Metropolitan Region Development Authority
(MMRDA) is the apex body for the planning and development of the MMR.
The region has been witnessing a high population growth as high as 32%
during the last two decades. Although the growth rate is lower in
comparison to 39% witnessed during 1981-1991, the population base
increased significantly to 23.51 mn. in 2011.
MUMBAI METROPOLITAN REGION POPULATION

1991
13.45
3.38%
Population
2001
17.81
2.85%
2011
23.51
2.82%
INVESTMENT
advisory REPORT
MUMBAI MAP
AIROLI
VASHI
KHARGHAR
PRABHADEVI
WADALA
BELAPUR
Proposed
ULWE
Under Construction Rail Line

Under Construction Metro Rail
10000
Under Construction Monorail

RANJANPADA
20000
4000
40000
80000
INVESTMENT
advisory REPORT
The MMR is spread over an

area of
4,355
sq.km.
Market
Overview
and has a population of
23.51
mn.
The residential pockets of

the island city like Cue
Parade, Napean sea Road
The real estate market of the MMR can be divided

in to four zones i.e. Island City, Western Zone,
Central Zone and Navi Mumbai.
ZONE
MAJOR RESIDENTIAL
DESTINATIONS
Island city
Colaba, Cue Parade, Tardeo,

Mahalakshmi, Parel, Worli, Dadar,
Mahim, Sewri
Western zone
Bandra, Andheri, Goregaon,

Malad, Borivali, Dahisar, Mira
Road, Bhayandar, Vasai, Virar
Central zone
Wadala, Chembur, Ghatkopar, Powai,

Bhandup, Mulund, Thane, Kalyan,
Dombivili, Kasara, Ambernath,
Karjat
Navi Mumbai
Airoli, Vashi, Nerul, CBD Belapur,

Panvel, Taloja, Ulwe
and Worli are amongst

the costliest in the
country
With the Arabian Sea on
three sides and lack of
land availability there is
limited scope for
horizontal expansion in
the island city, and the
only way for large scale
real estate development is
by going vertical
In the Western zone, while
employment and social
infrastructure are the
drivers until Malad,
locations further north
are driven by connectivity,
primarily by suburban train
network up to Virar
The island city is the southern section of Mumbai

and also referred to as old city. The zone houses
the Central Business district (CBD) comprising
Nariman Point, Colaba, Cue Parade, Fort and
Ballard Estate. Mumbai is the business capital of
the country and as such the CBD is home to a
large number of corporate headquarters. The
Bombay Stock Exchange (BSE) is the oldest stock
exchange in Asia and some of the biggest Indian
companies like Reliance Industries, Tata
Consultancy Services, State Bank of India and
Larsen & Toubro operate from their headquarters
here. Worli, Prabhadevi and Lower Parel are other
major oce locations. The residential pockets of
this zone like Cue Parade, Napeansea Road and
Worli are amongst the costliest in the country.
With the Arabian Sea on three sides and lack of
land availability there is limited scope for
horizontal expansion in this zone, and the only
way for large scale real estate development is by
going vertical.
the Andheri Kurla Road and some alongside

Western Expressway up to Malad. With respect to
residential development, Bandra and Juhu are the
most sought after locations and hence command
the highest property prices in this zone. The
western zone has a vibrant social infrastructure
with the presence of quality retail, education,
entertainment and healthcare options. The
property prices decline as one goes northwards
from the city centre. While employment and social
infrastructure are the drivers until Malad,
locations further north are driven by connectivity
primarily by suburban train network up to Virar.
The central zone covers the northern region
stretching from Sion to Karjat. We have
witnessed a phenomenon of shift in oce space
developments, north of the MMR and as a result
high quantum of oce buildings have come up
on the LBS road, Powai and Thane localities of
this zone. The stretch up to Thane has decent
social and physical infrastructure, and the
presence of several organized retail options on
the LBS road in the last ve years has added to
the appeal of the residential developments in the
region. The connectivity in this zone is mainly
through the Eastern Expressway and the
suburban train network. From real estate
development perspective the most critical factor
beyond Thane is the connectivity primarily
RESIDENTIAL LAUNCH TREND

IN MMR
2007
2008
2009
2010
2011
2012*
112,543
72,129
69,150
The geography beginning from Bandra towards

the north in the MMR is identied as the western
zone. It is home to the planned commercial hub
of the Bandra Kurla Complex (BKC), that has the
countrys largest stock exchange the - National
Stock Exchange (NSE) and important oces like
American Consulate and British High
Commission. Other signicant oce stock is on
44,483
37,127
Launches
41,950
INVESTMENT
advisory REPORT
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF MMR

The momentum in MMR
residential market is down
from
1,12,543 units
2007 2008
2009
2010
2011
launched in 2010 to just
2012 (Until September)
In the Central zone, while

distant suburbs beyond
24%
18%
No. of Units
41,950 units in
2012*
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
Stock
14%
8%
8%
6%
% of Unsold Units
Thane provide aordable

housing options, they are
not self-sustainable with
respect to employment
opportunities
Developed as the planned

satellite city of Mumbai,
Navi Mumbai is emerging as
a self-sustained real
estate market on account
of the presence of
employment opportunities
primarily in the IT/ITeS
sector
39% of the residential

supply is concentrated in
the Western zone
through suburban train network. This is because

while these distant suburbs provide aordable
housing options, they are not self-sustainable
with respect to employment opportunities.
Developed as the planned satellite city of
Mumbai, Navi Mumbai is emerging as a self
-sustained real estate market on account of the
presence of employment opportunities primarily
in the IT/ITeS sector. While CBD Belapur has been
planned as the oce development hub, other
signicant oce micro-markets are Vashi and the
Thane-Belapur Road. The zone has several options
for quality education and retail with Vashi being the
most prominent micro-market commanding the
highest property price in the zone. The
connectivity is mainly through the suburban rail
network that also connects the zone with the
island city and the central zone. Besides, the road
connectivity is supported by the Thane-Belapur
Road and the Palm Beach Road.

CONSTRUCTION UNITS
20%
5%
36%
39%
Island city
Western zone
Central zone
Navi Mumbai
INVESTMENT
advisory REPORT
The Western Expressway

and the Eastern
Expressway are the
arteries of road
Real Estate Drivers

Employment
connectivity in Mumbai
Service Sectors
Road Network
Rail Network
BFSI
Western Expressway
Suburban Train network
Eastern Expressway
Upcoming Metro &

Monorail network
IT/ITeS
Air Network
Upcoming International
Airport
Upcoming Eastern
Freeway
ROAD NETWORK
DISTANCE
OBSERVATIONS
Western Expressway
25 km.
Extending from Bandra to Dahisar, this 8 lane arterial road has been
enhancing the south-north connectivity in the city instrumental in the city
Eastern Expressway
24 km.
This 6 lane arterial road between Sion and Thane provides the southnorth connectivity
Sion Panvel Highway
25 km.
This 8 lane road has been instrumental in providing the west-east

connectivity between Mumbai and Navi Mumbai
The suburban train

network is considered as
the lifeline of the city and

has a signicant bearing
on the real estate
development of the
SUBURBAN TRAIN
NETWORK
DISTANCE
OBSERVATIONS
Churchgate - Virar
60 km.
Crucial for south-north connectivity in the western zone, separate

lines for suburban trains provide excellent connectivity
CST - Kalyan Kasara/Khopoli
121 km./115 km.
This suburban rail network provides excellent south-north

connectivity of the city with the central suburbs
Thane - Panvel
49 km.
This suburban rail network provides connectivity with the satellite city
of Navi Mumbai
connected regions

PROJECT
DISTANCE
OBSERVATIONS
STATUS
EXPECTED
COMPLETION
Mumbai Trans
Harbour Link
(MTHL)
22 km.
This `96,300mn. six-lane sea bridge will be

the most signicant link between Mumbai
and Navi Mumbai at Sewri and Nhava
respectively. The nancial feasibility has
been concluded. The authority has shortlisted
contractors so that the work can be
commissioned by 2013.
Planned
Beyond 2017
INVESTMENT
advisory REPORT
PROJECT
DISTANCE
OBSERVATIONS
STATUS
EXPECTED
COMPLETION
Eastern Freeway
16.8 km.
This project will enhance the connectivity of

South Mumbai with eastern suburbs and
serve as an important link road running
parallel to the Eastern Expressway. This
freeway will begin at CST and go upto Anik
and further to Panjarpol and Ghatkopar. The
real estate markets of Chembur and Wadala
will be the biggest beneficiaries on account
of this enhanced connectivity with the
Central Business District (CBD) of South
Mumbai
Under
Construction
2013
Multi-modal
Corridor (Virar Alibaug)
140 km.
This `100 bn. project is basically broadening

of the existing route of Virar-BhiwandiPanvel-Pen-Alibaug. This corridor will
primarily enhance the connectivity at the
periphery of the MMR and also with other
cities by serving as a link to important
national highways that link Mumbai to cities
like Ahmedabad, Delhi, Chennai and
Bangalore. The land survey work is in
progress and Phase I Virar-Chirner (Near
JNPT) is expected to be complete by 2017
Planned
Beyond 2017
The upcoming metro rail

network will address the
much needed west-east
connectivity in the city
through a mass rapid
transport system

PROJECT
DISTANCE
OBSERVATIONS
STATUS
EXPECTED
COMPLETION
Metro Rail Phase

I (Versova AndheriGhatkopar)
11.40 km.
The much needed west-east connectivity

through the MRTS will be addressed. This
link will enhance the connectivity with office
locations of Andheri like MIDC and SEEPZ.
Construction work is in the advanced stage
on this phase with 12 stations on route.
Under
construction
2013
Metro Rail PhaseII (Charkop BandraMankhurd)
31.90 km.
The west-east connectivity through this MRTS

will benefit residential pockets like Charkop
and Oshiwara in the western suburbs and
Chembur and Mankhurd in the central
suburbs
Planned
Beyond 2017
Monorail Phase I
(WadalaChembur)
8.2 km.
Under
Construction
2013
Planned
2016-17
Under
Construction
2016
Under
construction
2014
Suburban rail network in

Navi Mumbai will be
extended on the 32 km.
stretch from Nerul to
Uran
Monorail Phase II
(Jacob CircleWadala)
Navi Mumbai
suburban train
network
extension (NerulSeawood-Uran)
Navi Mumbai
Metro Rail Phase
I (Belapur to
Pendhar)
12 km.
32 km.
11.10 km.
This route will have 7 stations on route and

provide connectivity with locations like
Bhakti Park, BPCL colony and Chembur
With 11 stations on route this project will
enhance connectivity in otherwise congested
locations of Lower Parel and Dadar. Although
the financial feasibility is completed, the
project work will be commissioned only after
a successful run of the Phase I
Currently the region is connected through the
JNPT road. However, this suburban train
network will enhance connectivity and prove
beneficial to residential markets like Ulwe.
The construction work is in progress from the
Seawood end and will extend up to Uran
The 11 elevated stations enroute this metro
rail network will enhance connectivity within
the Navi Mumbai zone. Residential pockets
of Kharghar will realise the maximum benefit
on account of the enhanced connectivity with
the commercial hubs of CBD Belapur and
Taloja
INVESTMENT
advisory REPORT
PROJECT
DISTANCE
OBSERVATIONS
STATUS
EXPECTED
COMPLETION
Navi Mumbai
Metro Rail Phase
II & III (Pendhar
to Khandeshwar)
10.35 km.
This section with 7 stations will link Phase I

at Pendhar and stretch upto Khandeshwar.
On completion of this phase, the residential
micro-markets of Kalamboli, Kamothe and
Khandeshwar will benefit by the connectivity
with CBD Belapur.
Planned
2016
Western Elevated
Rail Corridor
(Oval Maidan Virar)
62.27 km.
This `210 bn. two track elevated corridor will

enhance the connectivity on the Churchgate Virar section in the western zone. While
being a mass rapid commute option this
train corridor will also provide comfortable
travelling by employing air conditioned train
service. This project will immensely benefit
the residential markets of peripheral western
suburbs beyond Borivali by enhancing their
connectivity with the CBD of South Mumbai
and cross section of the Mumbai Metro
Phase I. The Rail Board has approved the
project and is currently at the bidding stage
which is expected to be complete by early
2013.
Bidding
stage
Beyond 2017
Western zone contributes
33%
of the occupied
office space in the city
UPCOMING MAJOR INFRASTRUCTURE PROJECT
Besides BFSI and IT/ITeS

industries as dominant
office space occupiers, the
city is home to corporate
headquarters of several
Indian and multinational
companies
PROJECT
OBSERVATIONS
STATUS
EXPECTED COMPLETION
Navi Mumbai
International
Airport
In wake of the air travel demand from MMR

increasing from 29 mn. passengers in 201011 to an estimated 119 mn. in 2030-31, this
second international airport is being
developed in Navi Mumbai. While the
residential market has witnessed an
enormous growth in anticipation of this
project, it will provide a major boost to the
economy of the Navi Mumbai region with a
host of commercial activities that will come
up. The project has secured the
Environmental Clearance in November 2010.
Phase I will have an annual capacity of 10
mn. passengers
Planned
Phase I by 2015
Employment Indicators in MMR

Mumbai is the financial capital of the country and
as such the high pace of employment generation
here will drive the growth of the residential
markets. BFSI and IT/ITeS are the most dominant
industries and being the business capital it is
also home to the corporate headquarters of
several companies.
The current situation indicates that the western
zone with 33% of the total occupied office space
in the city has the highest density of office space
implying a large proportion of employment
opportunities emanating in the zone. The central
zone contributes 30% of the employment. The

16%
30%
21%
33%
Island city
Western zone
Central zone
Navi Mumbai
INVESTMENT
advisory REPORT
The occupied oce stock

in the city will increase by
63%
in the next 5 years
impact of the global nancial crisis on the

employment scenario still prevails and therefore
the MMR oce market is witnessing a vacancy of
15%. However, we estimate that this vacancy will
decline to 9% by 2017 mainly on account of
improved business scenario and muted oce
supply. We estimate that the occupied oce
space in the city will go up by 63% between 2011
2017. This growth in eect will drive the
residential markets in the city.
MMR OFFICE
SPACE DYNAMICS
140
120
100
80
60
40
20
2008 2009 2010
2011 2012E 2013E 2014E 2015E 2016E 2017E
Stock
Occupied Stock
Statutory levies in the city

increase the cost of
buying property by as much
as
10%
STATUTORY COSTS
AND MARKET NORMS
STATUTORY COSTS
The property market

norms in the city make it
an investor friendly
market
COST
DETAILS
Stamp Duty
5% (Levied on higher of agreement value or ready reckoner rate)
Registration
1% (up to a Maximum of `30,000)
Service Tax (on under

construction property)
MARKET NORMS
NORM
DETAILS

registration
Re-sale before
possession
Allowed
Transfer charges payable

to builder
0.5% of Base Selling Rate
Loading (as % of carpet)
55% - 80%
(Developers market the property at 55% loading on usable carpet, which includes
free of FSI and non-live-able areas like ower bed, drying area, etc. Implying an
eective loading of 55-80%.)
INVESTMENT
advisory REPORT
The city's real estate

market is growing in the
north-east direction
Bandra Kurla Complex

(BKC), Lower Parel and
Worli continue to be
preferred locations for
the BFSI and consulting
companies
Running parallel to the

Eastern Expressway, the
under construction
Eastern Freeway project
will boost the
connectivity of the real
estate markets in the
island city and central
zone
PREFERRED
ZONES IN
MMR
Mumbai has gained its fair share of glory by
being the nancial capital of the country. The
dominance of the city in the business landscape
of the country has been driving the real estate
development. We expect this trend to continue in
the foreseeable future. However, we do not expect
all residential markets to reap the benets on the
same scale. The city is surrounded by the Arabian
Sea on three sides and as such land is extremely
scarce in the Mumbai city limits. Hence, the
region will grow towards the north and the
eastern territory, predominantly Navi Mumbai.
However, the magnitude of growth will vary
across these emerging markets depending on
factors like employment opportunities,
infrastructure development and connectivity. We
have factored in these dynamics in selecting the
investment destinations.
As a result of this thought process, we expect
Navi Mumbai zone and the Central zone to be the
biggest beneciaries in the next ve years. Navi
Mumbai region is primarily a hub for the IT/ITeS
industry and we estimate this momentum to
accelerate in the next ve years. This estimate is
based on the fact that it is a planned city and
there is visibility on the development of the
infrastructure projects. Relatively lower oce
rentals and large oce space options are factors
that make this zone a preferred place for the IT
industry. Strategic location on the Mumbai Pune
Expressway, that connects the Hinjewadi IT belt of
Pune, will be benecial to Navi Mumbai. Going
forward, the development of MMR's second
international airport in this zone will only
augment the cause.
Our other promising region in the MMR is the
central zone. The relocation of oce occupiers
towards the north is a trend that we expect to
continue and the central zone is expected to
emerge as a signicant beneciary of this. While
oce markets like the Bandra Kurla Complex
(BKC), Lower Parel and Worli continue to be
preferred locations for the BFSI and consulting
companies, oce developments on the LBS Road
will further fuel the growth of the residential
market in this zone. On the connectivity front,
while the Eastern Expressway has been the
lifeline of road connectivity in this zone, the
under construction Eastern Freeway project will
be a great supplement. Its connectivity with the
promising IT/ITeS hub of Navi Mumbai is in place

through the Vashi bridge and the Airoli bridge
and this will be enhanced by the Mumbai Trans
Harbour Link (MTHL).With respect to the
connectivity with the western zone, the upcoming
Mumbai Metro and the Mono Rail project will be a
shot in the armour for this zone.
NAVI
MUMBAI
Developed as a planned satellite city of Mumbai,
Navi Mumbai has emerged as a self-sustaining
zone within the MMR. This zone has the presence
of industrial activity in the regions of Mahape and
Taloja. However, the last decade has witnessed a
stellar growth of the IT/ITeS industry in this zone.
Navi Mumbai provides a better quality of living at a
relatively lower price than Mumbai and hence
20% of the under construction residential
property in the MMR is contributed by this zone.
City and Industrial Development Corporation
(CIDCO) is the development body for the zone
entrusted by the state to carry out the planned
development. Besides the government's land
holding, CIDCO acquires land from farmers and
other private land owners and then auctions it as
per its city's development plan. The Navi Mumbai
zone has witnessed high growth of residential
development in the last ve years. Since 2007,
87,055 residential units have been launched
here, of which almost 65,403 units have been
absorbed. However, the consumer appetite was
hit with the soaring property prices putting a dent
on aordability since 2010. The fallout of high
RESIDENTIAL LAUNCH
TREND IN NAVI MUMBAI
2007
2008
2009
2010
2011
2012*
28,247
20,220
14,011
9,585
7,141
Launches
7,850
INVESTMENT
advisory REPORT
CENTRAL AND NAVI MUMBAI ZONE MAP

AIROLI
POWAI
ANDHERI
JUHU
BANDRA
KHARGHAR
DADAR
BELAPUR
PANVEL
Proposed
Airport
Major Roads
FORT
Under construction Monorail

Proposed Monorail
Under construction Metro Rail
Proposed Metro Rail
JNPT
COLABA
Proposed MTHL
Railway Line
Under Construction Rail Line
Benchmark location
URAN
Top destination
Employment Hubs
INVESTMENT
advisory REPORT
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF NAVI MUMBAI
65,403 units out of
the 87,055 residential units
2007 2008
launched in Navi Mumbai
2009
2010
2011
2012*
25%
since 2007 are already sold

21%
No. of Units
11%
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
6%
4%
3%
Cumulative Supply
% of Unsold Units
property price and interest rate was an increase in

the unsold inventory to 25% as on Q3 2012.
Taking cognizance, a large number of developers
have exercised restrain on launching new
projects in 2012.
Real Estate Drivers

Thane-Belapur Road and
Palm Beach Road are the
arteries of road
Employment
connectivity in Navi
Mumbai
IT/ITeS
Manufacturing
Road Network
Rail Network
Air Network
Thane-Belapur Road
Suburban train network
Upcoming International
Airport
Palm Beach Road
Upcoming Metro
rail network
THANE-BELAPUR ROAD
The 20 km. Thane-Belapur Road is the most
important road link in the zone providing both the
intra-zone as well as inter-zone connectivity with
Navi Mumbai. Towards the north it begins at
Thane and towards the south it connects with

CBD Belapur. Going further this road connects
with the Mumbai-Pune expressway that connects
the MMR with Pune. The importance of this road
can be gauged by the fact that major oce space
locations like Airoli, Rabale, Turbhe, Jui Nagar
and CBD Belapur are linked on this road.
INVESTMENT
advisory REPORT
Vashi Bridge and Airoli

Bridge provide the inter
zone connectivity to Navi
Mumbai
Mindspace IT SEZ, the 4 mn.sq.ft. oce

development of Airoli is situated on this road. The
other prominent oce developments on the road
are Reliance Corporate Park and Dhirubhai
Ambani Knowledge City.
Upcoming
Infrastructure
PALM BEACH ROAD

The Palm Beach Road runs alongside the
mangroves on the western coast of this zone.
Stretching from Vashi to Belapur this stretch is
widely referred to as the Marine Drive of Navi
Mumbai and boasts of the most expensive
properties in the zone. It is a supplementary link
to the Thane-Belapur Road and connects
residential markets like Vashi, Sanpada, Nerul
and Belapur. The road is developing as a hub for
organized retail developments.
VASHI BRIDGE
The 6-lane Vashi Bridge also referred to as the
Sion- Panvel Expressway is a major inter-zone
link. Providing East-West connectivity within the
MMR, this road connects Navi Mumbai zone at
Vashi with the central zone at Mankhurd. At
present this link is the rst entry point and also
the shortest road network from the island city
zone to the Navi Mumbai zone.
AIROLI BRIDGE
The Airoli Bridge serves as the inter-zone
connector by connecting the Navi Mumbai zone
with the central zone. It links the Eastern
expressway at Mulund in the Central zone with
the Thane-Belapur Road at Airoli in the Navi
Mumbai zone.
SUBURBAN TRAIN NETWORK

The zone has a decent inter and intra zone
connectivity by the suburban rail network. The
suburban train network connects the zone with
island city i.e. the CBD locations of Nariman
Point, Fort and Colaba and also the central zone
in Thane. Running parallel to the crucial ThaneBelapur Road it connects the major oce space
locations like Airoli, Rabale, Turbhe, Jui Nagar
and CBD Belapur.
NAVI MUMBAI METRO NETWORK

Of the six planned metro corridors in the zone
that would eventually cover a length of 120 km.,
only one i.e. Belapur-Taloja-Khandeshwar
corridor, encompassing 21.45 km., is worth
considering at this point of time. This corridor will
be developed in three phases and once
completed it will improve the connectivity within
the zone, which currently lacks mass rapid
transport system on this route. It will connect the
residential micro-markets of Kharghar,
Khandeshwar and Kalamboli with the
employment centre of CBD Belapur. The metro rail
network is considered to be a convenient form of
mass rapid transport system. There is a visibility
on the progress of the metro rail in the Navi
Mumbai Zone. The pace of development is
encouraging and we expect that the Phase I will
be completed by early 2014.
SUBURBAN TRAIN NETWORK

The suburban train network in the zone is fairly
decent on account of the connectivity with the
central zone at Thane and the island city up to
Mumbai CST. However, the southern stretch from
Ulwe to Uran lacked connectivity. It was
connected only by the JNPT road. However, with
the under construction 27 km. Nerul-SeawoodUran line this stretch will witness signicant
improvement in connectivity. The network is
expected to be ready by 2016. Widely referred to
as the lifeline of Mumbai, the train network in the
entire MMR is very crucial and to a great extent
inuences the growth of real estate development
in the network.
MUMBAI TRANS HARBOUR LINK

(MTHL)
The MTHL project has the potential to become a
game changer in the real estate market. It will
connect the Navi Mumbai zone with the Island
city zone at Sewri and Nhava respectively,
thereby reducing the travel time between these
zones signicantly. The southern stretch from
Ulwe to Uran will be the biggest beneciaries on
account of their connectivity with the CBD
INVESTMENT
advisory REPORT
The increase of air

passenger trac from the
current 29 mn. passengers
locations of Nariman Point, Fort, and Colaba. The

nancial feasibility has been concluded. The
authority has shortlisted contractors so that
the work can be commissioned by 2013.
to 119 mn. in 2030-31 will be

supported by the city's
second international
airport coming up in Navi
Mumbai
NAVI MUMBAI INTERNATIONAL

AIRPORT (NMIA)
Air trac in the MMR is expected to increasing
from 29 mn. passengers in 2010-11 to an
As industrial land gives
estimated 119 mn. in 2030-31, which cannot be

handled by the existing airport in the western
zone. Paucity of land for further expansion in the
existing airport has paved way for the second
international airport of MMR that will come up in
the Navi Mumbai zone. This upcoming
international airport, Environmental Clearance for
which has already been secured, is expected to
witness its Phase I to be operational by 2015.
Besides providing a boost to the economy of Navi
Mumbai zone with a host of commercial activities
in the allied industry, it will increase the
attractiveness of oce and residential properties
in the zone.
Navi Mumbai
way to more lucrative

oce developments,
IT/ITeS industry will
dominate the economic
landscape of Navi Mumbai
The occupied oce stock
105%
the next 5 years
go up by a stellar 105% by 2017 as the vacancy

rate will come down from the current level of 24%
to 6%. We anticipate that the employment
generation happening in the service industry will
feed the growth of residential markets in the
zone.
NAVI MUMBAI OFFICE

SPACE DYNAMICS
30
in Navi Mumbai will

increase by
The zone has the presence of manufacturing

activity in the state owned industrial estates.
MIDC areas in Mahape along the Thane- Belapur
Road and Taloja have the presence of several
small and medium enterprises (SMEs). Taloja has
the presence of companies like Exide Batteries,
Asian Paints and Asahi Glass. However, with the
growth of the city, the industrial land is giving
way to more economically feasible, commercial
oce and residential development. In the
foreseeable future we expect the service industry
primarily IT/ITeS to dominate the economic
landscape of the zone.
in
Within the zone, most of the employment

generation is on the 20 km. stretch of the ThaneBelapur road. Locations like Airoli, Rabale,
Mahape towards the north and Vashi, Turbhe, Jui
Nagar and Belapur towards the south are
promising oce space locations where ample
employment opportunities are available.
Currently the zone has 18 mn.sq.ft. oce space of
which about 13.58 mn.sq.ft. is occupied. We
expect an encouraging growth in the
development of oce space for the next ve
years until 2017. While the oce space stock will
increase by 80%, the occupied oce space will
25
20
15
10
5
2008 2009 2010
Stock
Occupied Stock
2011 2012E 2013E 2014E 2015E 2016E 2017E
INVESTMENT
advisory REPORT
Of the 6,6 06 residential

units launched in Ulwe
since 2009,
4,805 units
are already sold
DESTINATION
ULWE
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF ULWE
2009
2010
2011
2012*
27%
23%
7,000
No. of Units
6,000
5,000
12%
4,000
3,000
2,000
5%
1,000
Cumulative Supply
At present, lack of mass

rapid connectivity is a
concern. However, the
under construction
suburaban rail network
will address it by
2015
% of Unsold Units
Ulwe is a residential market located to the south

of the Panvel creek. CIDCO, the planning authority
of Navi Mumbai, has acquired land from the
villagers and other private land owners and is
developing this location as per its city
development plan. Hence, it is not yet an
established residential destination. Developers
started taking keen interest in this locality only in
2009. Since 2009, Ulwe has witnessed a launch
of 6,606 residential units and almost 83% of these
were launched between 2010 and 2011. Due to the
initial euphoria associated with the investor
community, the projects also witnessed healthy
sales. However, the rate of sale has subsided now
on account of low end user interest, because of

lack of mass rapid transport connectivity. The rate
of unsold inventory climbed to 27% as on Q3
2012 and taking cognizance of the state of
market, the developers have reduced the new
launches signicantly.
At present, Ulwe is connected with the important
Thane-Belapur Road through the Uran Road,
which also connects it with the JNPT Road that
goes towards the Jawaharlal Nehru Port (Nhava
Sheva).CBD Belapur, the CIDCO notied oce
micro-market, is just 7 km. from Ulwe enroute this
Uran Road. Besides, CBD Belapur, ve other
RESIDENTIAL LAUNCHES IN ULWE ULWE PRICE FORECAST


2009
2010
2011
2012*
2012
2017E
`15,802
2,675
`10,000
2,256
`9,800
`4,000
230
700
Vashi
130
Launches
Ulwe
INVESTMENT
advisory REPORT
ULWE PRICE FORECAST

Dearth of social
infrastructure is a
concern. However,
planned development will
18,000
address the same in the

foreseeable future
16,000
14,000
38%
12,000
10,000
60%
8,000
Ulwe will benefit on
account of the corollary
commercial acivity arising
from the upcoming
6,000
4,000
2,000
international airport and

the SEZ land
2009
Vashi
Ulwe
2010
2011
2012
2013E 2014E 2015E 2016E 2017E
Discount Margin
The discount factor of

residential capital values
in Ulwe in comparison to
Vashi will reduce to 38% by
2017
prominent office locations within the zone are at

a maximum distance of just 22 km. Going
forward, the under construction 27 km. NerulSeawood-Uran rail line will connect Ulwe with the
suburban rail network. This will happen through a
railway station called Bamandongri which is
expected to be operational by 2015. Once this
connectivity is in place, Ulwe will be connected
with all these major office markets though the
mass rapid transport system.
The planning of this destination is undertaken by
CIDCO and hence although there is a dearth of
social infrastructure at present, the same will be
addressed through the auction of earmarked
plots for hospitals, schools and other real estate
developments. Proximity to the Navi Mumbai
International Airport (NMIA) will help Ulwe on
account of the corollary commercial activities.
Towards the south of the international airport was
the planned Navi Mumbai Special Economic Zone

(NMSEZ). Although plans for the SEZ have been
shelved, we expect large scale commercial
developments to come up on this land parcel that
will immensely benefit Ulwe. Navi Mumbai Zone
has emerged as a self-sustaining zone; however,
the connectivity with the island through the
proposed Mumbai Trans Harbour Link (MTHL) will
increase the attractiveness of this destination.
Once completed, the MTHL will be the most
significant link between island city zone and Navi
Mumbai in Sewri and Nhava respectively.
At present, Vashi is the established residential
micro-market in the zone with prices averaging at
`10,000/sq.ft. However, the price in Ulwe is
around `4,000/sq.ft., which is a 60% discount.
Based on our investment rationale as discussed
above we expect this discount to narrow down to
38% by 2017.
INVESTMENT
advisory REPORT

Ulwe has access to the
zone's
* By road
major oce
MAHAPE
AIROLI
TURBHE
16
km
markets within a distance
11
km
of 22 km.
22
km
7
km
15
km
18
km
RABALE
CB
D BELAPUR
VASHI
Distance
The oce market of CBD

Belapur is at a distance of
just
7 km.
Investment Options in Ulwe

SELECT PROJECTS
Project
1600 - 1850
Ulwe residential property

is forecasted to
appreciate by
3BHK
6.9 - 8.7
No. of Launch Completion

Units Date
Date
Vighnaharta Shree
Complex
Siddhivinayak 126
Sep-11 Mar-14
880 - 1224
2BHK
3.6 - 5.8
Palacio
Platinum
Group
122
Jan-11
500 - 700
1BHK
2.0 - 2.9
Neelsiddhi
Joya
Neelsidhi
Group
120
Feb-12 Dec-13
Swaraj
Kingston
Swaraj
Builders
164
Dec-10 Jul-14
145%
over the next 5 years
Developer
Nov-13
INVESTMENT
advisory REPORT
Of the 3,518 residential

units launched in Chembur
since 2007,
2,625
DESTINATION
CHEMBUR
units
are sold
CHEMBUR RESIDENTIAL MARKET

2007
2008 2009
2010
2011
2012*
24%
25%
19%
No. of Units
3500
3000
2500
2000
1500
1000
500
3%
0%
Cumulative Supply
On account of its
startegic location in the
MMR, overall growth of
employment in the city will
4%
% of Unsold Units
Chembur is a residential destination in the central

zone of the MMR. The stretch towards the south of
Chembur railway station up to Collectors Colony
is the most sought after residential catchment.
Going further south of the Collectors Colony, the
micro-market has the presence of industrial
activity notable amongst which is Rashtriya
Chemicals and Fertilizers and Bharat Petroleum
Renery. The Eastern Expressway is the most
signicant project that connects the region with
island city zone and other regions of the central
zone.
Since 2007, Chembur has witnessed the launch

of 3,518 residential units, out of which almost
75% or 2,625 units have been sold. 2010 was an
exceptionally good period for the residential
property market for this destination. However,
due to the slowdown in the overall Mumbai
market, the inventory level in Chembur climbed
up to 25% in Q3 2012. Taking cue from the
changed consumer appetite, many developers
have refrained from launching new projects this
year.
drive the residential

market of Chembur
CHEMBUR RESIDENTIAL LAUNCHES CHEMBUR PRICE FORECAST


2007
2008
2009
2010
2011
2012*
2012
2017E
`55,459
1,601
`36,000
`27,000
`12,000
845
360
377
210
Launches
125
Prabhadevi
Chembur
INVESTMENT
advisory REPORT
CHEMBUR PRICE FORECAST

The Eastern Freeway
project and the Santacruz
Chembur Link Road will
signicantly enhance the
connectivity of Chembur
with island city and
western zone respectively
60,000
54,000
48,000
51%
42,000
36,000
30,000
67%
24,000
18,000
12,000
6,000
2007
Prabhadevi
2008
Chembur
2009
2010
2011
2012
2013E 2014E 2015E 2016E 2017E
Discount Margin
The Chembur-Wadala phase

of monorail project is in
an advanced stage of
construction and is
expected to be
operational by early 2013
Being strategically located within the central

zone, Chembur is not only connected with the
major oce markets of the central zone but also
the island city zone, western zone and Navi
Mumbai zone. Hence, the overall growth of
employment in the MMR will feed the residential
market of this destination. Due to its proximity to
the revered oce market of the Bandra Kurla
Complex (BKC) and increasing concentration of
oce developments in the central zone, we
expect the attractiveness of residential property
in this destination to go up in future. At present,
the destination has connectivity through the
Eastern Expressway, which connects it with the
prominent oce space locations in the central
zone. Besides, the mass rapid connectivity is
provided by the suburban rail network that
connects it with the CBD locations of Fort and
Nariman Point through Mumbai CST.
Going forward, scale of upcoming infrastructure
projects will signicantly boost the connectivity
of Chembur in the foreseeable future. The Eastern
Freeway Project is one important project that will
link Chembur with the CBD of South Mumbai. This
link, running parallel to the Eastern Expressway,
is in advanced stages of construction and shall

be operational by H2 2013.
The Santacruz Chembur Link Road is another
pivotal infrastructure project that will connect
Chembur with the western zone. This 6.45 km.
road will start at Amar Mahal Junction in Chembur
and end up to Santacruz East thereby becoming a
connecting link between the Eastern Expressway
and the Western Expressway. This link will
signicantly reduce the travel time from Chembur
to the western zone when it is ready in 2013.
Connectivity through a mass rapid transport
system has a particularly high bearing on the
growth of real estate development in the MMR.
The upcoming 20.2 km. Chembur Wadala- Jacob
Circle monorail project is the rst monorail
project in the MMR. Phase I beginning from
Chembur and terminating at Wadala is in
advanced stages of construction and expected to
be open to public by early 2013. Phase II will
connect Chembur with Jacob Circle in the island
city zone via Wadala. This project will directly link
Chembur with the oce market of Lower Parel.
The Metro Rail Phase II (Charkop - BandraMankhurd) will further enhance the connectivity
INVESTMENT
advisory REPORT
Limited land availability

will limit the scope of new
construction in Chembur
At present, Prabhadevi is an established

residential market commanding an average price
of `36,000/sq.ft. At an average of `12,000/sq.ft.
Chembur residential property sells at a 67%
discount. Based on our investment rationale
discussed above, we forecast this discount to
narrow down to 51% by 2017.
of Chembur with the western zone. Work has been

awarded to the contractor but is lagging behind
schedule. While the project is unlikely to be
complete in our forecast horizon of ve years, it
will have a positive impact on prices during this
period.
AN
D
RLA COMP
KU
L
10
km
7
km
of BKC and Lower Parel are
VASHI
KURLA
RIRO
HE
NA
AD
Prominent oce markets
C)
(BK
EX
BAN
DR
* By road
13
km
22
km
12
km
8
km
AN PO
IN
RIM
T
18
km
located within a distance

D
of 12 km. from Chembur

OA
IK
R
HR
OLI- LBS
LO
W
L
ER PARE
WORLI
Distance
Investment Options in Chembur

Residential property in
Chembur would appreciate
by
125%
over the next
1600 - 1750
4BHK
16 - 19.3
1350 - 1700
3BHK
12.8 - 18.7
5 years
1000 - 1150
2BHK
9.5 - 11.5
600 - 760
1BHK
5.4 - 7.6
SELECT PROJECTS
Project
Developer

Units Date
Date
Views
Dheeraj
Group
308
May-10 Jun-14
Brizo
Residency
Red Brick
132
Dec-10 Dec-14
Mangal
Moorti
Mangal Moorti 250

Developer
Jan-10
Dec-14
Akshay
Paradise
Akshay
Corporation
Jun-11
Oct-14
70
INVESTMENT
advisory REPORT
Of the
1,871
residential
units launched in Wadala
DESTINATION
WADALA
since 2007, 1,387 units were

launched in 2011 alone
WADALA RESIDENTIAL MARKET

2007 2008 2009
the premium segment, the
2011
2012*
56%
56%
46%
No. of Units
With a slew of launches in
2010
2000
41%
41%
1500
1000
perception of Wadala as a
residential market has
500
3%
signicantly improved
Cumulative Supply
Being strategically
located, Wadala will
benet from its
% of Unsold Units
Wadala is a residential market in the

central zone. Eastern expressway is the
arterial road that connects Wadala with other
regions of the central zone and also the CBD
in the island city zone. The destination is also
connected by the suburban train network through
the Wadala station. It is surrounded by dense
residential developments on the south, north
and western side by Parel-Sewri, Matunga and
Dadar respectively. Arabian Sea on the eastern
side restricts any further real estate development
here.The destination witnessed very limited supply,

of just 167 residential units, between 2007 and
2009. However, the consumer perception about
the location started improving in 2010 and
2011.During this period almost 1,704 units were
launched, many of them being positioned at the
high end market. These projects also witnessed
healthy absorption at the very initial stage of the
launch. At present, the destination has an unsold
inventory of 56%, which is at a nascent stage of
construction.
WADALA RESIDENTIAL LAUNCHES
WADALA PRICE FORECAST
connectivity with
employment hubs across
the MMR
2007
2008
2009
2010
2011
2012*
2012
2017E
`55,459
1,387
`36,000
`35,000
`15,000
313
72
95
Launches
Prabhadevi
Wadala
INVESTMENT
advisory REPORT
WADALA PRICE FORECAST

Wadala residential market
will benet due to its
connectivity with the

premium oce market of
Bandra Kurla Complex (BKC)
60,000
54,000
48,000
37%
42,000
36,000
30,000
58%
24,000
18,000
12,000
6,000
2007
Prabhadevi
2008
Wadala
2009
2010
2011
2012
2013E 2014E 2015E 2016E 2017E
Discount Margin
The region development

authority's intention of
developing Wadala in a
similar manner as BKC will
further increase the
appeal of this destination
The most important proposition of the Wadala

residential market is its strategic location in the
MMR. Located to the south of the central zone,
this destination is at a comfortable commuting
distance from the employment centres of the
island city zone, central zone, western zone as
well as Navi Mumbai. On account of this strategic
location, the overall growth in the MMR oce
market will have a bearing on this destination.
Besides, the proximity of 8 km. and 10 km. from
prominent oce markets of BKC and Worli
respectively, make it a sought after residential
catchment. As a result, new launches in the last
two years have been positioned at the high end
segment of consumers. This happened because
Wadala oers large land parcels to develop
residential projects with sky scrapers oering
ultra-modern amenities. This provision enables
the destination to provide a lifestyle shift and
command a premium price for the residential
property in comparison to the surrounding micromarkets.
At present, the arterial Eastern expressway
connects this destination with the CBD of
Nariman Point, Fort and Colaba. The suburban
train network connects the destination with

Mumbai CST in the island city zone, Andheri in
the western zone and Vashi and CBD Belapur in
the Navi Mumbai zone. This strategic location
along with established road and suburban train
connectivity with the important oce markets in
each zone make Wadala a promising residential
market.
During the next ve years (2013-2017), two major
infrastructure projects will alter the residential
landscape of this destination. The Eastern
Freeway Project, which is in advanced stages of
construction and is expected to be operational by
2013, will immensely improve the road
connectivity with the CBD in the island city zone.
Additionally, the mass rapid connectivity through
a convenient and modern means of transport will
be provided by the upcoming monorail project.
The 20.2 km. Chembur Wadala- Jacob Circle
monorail project will connect Wadala with the
upcoming oce developments in Central Mumbai
namely Lower Parel. While Phase I connecting
Chembur with Wadala will be ready by 2013, the
work for Phase II, connecting Wadala with Jacob
Circle, is yet to be commissioned.
INVESTMENT
advisory REPORT
Wadala has the potential

to provide a lifestyle
shift, which is possible in
projects developed on
Going forward, we expect this destination to

follow the established market of Prabhadevi. In
comparison to Prabhadevi residential property,
the discount has already narrowed down from
70% in 2007 to 58% in 2012.Wadala commands a
price of `15,000/sq.ft., which is a 58% discount

to Prabhadevi that commands an average price of
`36,000/sq.ft. Based on our investment rationale
this discount will narrow down in the next ve
years (2013-2017) and come down to 37% by 2017.
large land parcels that

developments with plush
amenities
* By road
AN
WORLI
10
km
5
km
21
km
13
km
18
km
EX
PL
BA
DR
AK
VASHI
15
km
8
km
Distance
ERI- KURLA
DH
AD
RO
WER PAR
LO
E
URLA C
OM
AD
facilitate high rise premium
VI
O
KH
ROLI- LBS R
NA
T
RIMAN POIN
Travel time
Investment Options in Wadala

SELECT PROJECTS
Wadala residential
property shall appreciate
by
133%
next 5 years
1950 - 2700
4BHK
28.3 - 45.9
during the
1500 - 1900
3BHK
22.5 - 30.4
1260 -1520
2BHK
18.3 - 25.1
Project
Developer

Units Date
Date
Dosti
Ambrosia
Dosti Group
288
New Cue
Parade
Lodha Group 900
Nov-10 Sep-14
Oct-11
Nov-15
Vishwachand R.K.
Sky
Developers
100
May-11
Dec-13
Zeon
164
Sep-11
Dec-15
Ajmera
INVESTMENT
advisory REPORT
The Mumbai Trans Harbour

Link (MTHL) will
signicantly improve the
HIDDEN GEM
Ranjanpada
connectivity of
Ranjanpada with the
* By road
AIROLI
D BELAPU
R
CB
28
km
15
km
22
km
VASHI
Distance
Suburban train
connectivity will
establish Ranjanpada as a
residential market in the
years
LOCATIONS
* By road
55
km
MAN POI
RI
40
mins
Current Distance in km.

Road Distance post MTHL in km.
45
km
ER PAR
E
OW
38
mins
The destination is at a distance of approx. 15 km,

22 km and 28 km from prominent oce markets
of CBD Belapur, Vashi and Airoli respectively.
Although these employment centers are at a
comfortable distance, the connectivity is a
drawback both in terms of the mode of commute
and the transit time. Ranjanpada only has a road
connectivity to CBD Belapur, beyond which the
suburban train connectivity is available. On
account of container trac from JNPT, the trac
on the Uran Road, which connects Ranjanpada to
Belapur, remains high. Beyond Belapur, the
destination is connected to Vashi through the
Palm Beach Road and the Thane-Belapur Road
and alternatively by the suburban train network.
However, the under construction rail project on
Nerul-Seawood-Uran line will move the scale in
Additionally, the Mumbai Trans Harbour Link

(MTHL) project will be a game changer project for
this destination. This project will radically change
the road connectivity and bring a drastic
reduction in travel time between Ranjanpada and
the Island city zone. At present, the shortest road
connectivity between this destination and
Mumbai is through the Vashi Bridge (Sion Panvel
Highway). The destination will be amongst the
biggest beneciaries on account of this
connectivity with the CBD locations of Nariman
Point, Fort, Colaba. The nancial feasibility has
been concluded. The authortiy has shortlisted
contractors so that the work can be commissioned
by 2013.
NT
next
Ranjanpada is a locality in the Navi Mumbai Zone.

With absolutely no mass rapid transport, the
region has extremely poor inter zone connectivity.
The JNPT Road is the only connectivity of
Ranjapada with important regions in Navi
Mumbai. Currently, the only driver for the real
estate development in this destination is the port
related activity in the Jawaharlal Nehru Port Trust
(JNPT).
favour of this location. Being a mass rapid mode

of transport this suburban train link will reduce
transit time and provide last mile connectivity to
this destination. The attractiveness of residential
market is expected to increase with this
enhanced connectivity with the important oce
markets in the Navi Mumbai zone. This project is
expected to be complete by 2016.
LOCATIONS
NA
revered island city
INVESTMENT
advisory REPORT
PUNE
Pune, also referred to as the Oxford of India due to the presence of

numerous educational institutes, is the seventh most populous city in India
and the second largest city in Maharashtra. Punes urban agglomeration,
also known as the Pune Metropolitan Region (PMR), is spread over 1,340
sq.km. and consists of Pune Municipal Corporation (PMC), Pimpri
Chinchwad Municipal Corporation (PCMC), Pune Cantonment and Khadki
Cantonment. As per Census 2011, the total population of PMR was 5.05 mn.
Development of the PMR is undertaken by various agencies such as the
PMC, PCMC, Public Works Department (PWD) and others. Absence of a
single planning authority for the metropolitan region has led to an
inordinate delay in the execution of various infrastructure projects. Although
the idea to set up the Pune Metropolitan Regional Development Authority
(PMRDA) was first initiated in 2008, it is still at the proposal stage.
PUNE METROPOLITAN REGION POPULATION

1991
2.49
4.0%
Population
2001
3.76
4.0%
2011
5.05
3.0%
INVESTMENT
advisory REPORT
PUNE MAP
Major Roads
Railway Line
Proposed Metro Corridor I
Proposed Metro Corridor II
South Zone
West Zone
Central Zone
East Zone
North Zone
INVESTMENT
advisory REPORT
Pune Metropolitan Region

is spread over
1,340 sq.km. and has a

population of
5.05 mn.
Market
Overview
Pune is divided into ve broad zones: Central,
North, West, South and East.
ZONE
MAJOR RESIDENTIAL
DESTINATIONS
North
Pimpri, Chinchwad, Nigdi, Moshi,

Dighi
Central
Bund Garden Road, Koregaon

Park, Deccan, Model Colony,
Kothrud, Swargate
Development of
Hinjewadi as an
IT/ITeS destination has led
to an unprecedented
South
Warje, Katraj, Kondhwa, NIBM

Road, Undri
East
Kalyani Nagar, Yerwada, Viman

Nagar, Kharadi, Wagholi Road,
Hadapsar
West
Aundh, Baner, Pashan, Bavdhan,

Wakad, Hinjewadi, Ravet
growth of the western

part
Since 2007, the city has

witnessed the launch of
200,301
which
units of
154,874 units
have been absorbed till

Q3 2012
North Pune is primarily an industrial area with

various Auto & Auto Ancillary and Engineering
industries located here. The twin towns of Pimpri
and Chinchwad are host to some of Indias
leading auto companies manufacturing plants
such as Bajaj Auto, Tata Motors, Force Motors and
DaimlerChrysler. Additionally, engineering majors
like Thermax, Forbes-Marshall, ThyssenKrupp and
Alfa Laval also have their manufacturing base
here. Historically, North Pune has been a selfsucient zone with the residential market
thriving on the employment generated by the
manufacturing sector. Pimpri, Chinchwad, Nigdi
and Moshi are some of the prominent residential
destinations here.
Central Pune is the commercial heart of the city
with various corporate oces located in the
Central Business District (CBD) areas of Bund
Garden Road, M.G Road, Deccan and Shivaji
Nagar. Good physical and social infrastructure,
presence of organized retail, excellent
connectivity with various parts of the city and
limited availability of vacant land have ensured
the highest property prices in this part of the city.
Destinations such as Koregaon Park, D.P Road,
Model Colony and Kothrud are some of the
primary residential areas here.
Over the years South Pune has emerged as a
cheaper alternate residential zone compared to

Central Pune. People preferring to reside in
proximity to the city centre but unable to aord a
house there, favor these locations. Absence of
any signicant employment opportunities has
restricted the growth of this zone as compared to
other zones. Katraj, Kondhwa, NIBM Road and
Warje are some of the major residential
destinations here.
Large number of IT/ITeS oces, robust physical
and social infrastructure, established organized
retail market, presence of the Pune airport and
proximity to the city centre have resulted in East
Pune emerging as the most preferred residential
zone in the last ten years. Development of
Magarpatta City as a self-sustaining integrated
township and setting up of EON IT Park have
further boosted the residential market here.
However, the emergence of Hinjewadi in West
Pune as an alternate IT/ITeS destination has been
giving a tough competition to the oces located
here. A lot of blue chip IT/ITeS companies prefer
Hinjewadi over East Pune due to the availability of
vast vacant land on which built-to-suit oces can
be constructed for captive use. Although East
Pune continues to attract small and mid-sized
IT/ITeS companies, most of the larger players are
setting up campuses in West Pune.
RESIDENTIAL LAUNCH TREND

IN PUNE
2007
2008
2009
2010
42,637
38,809
2011
2012*
40,452
33,104
24,866
20,433
Launches
INVESTMENT
advisory REPORT
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF PUNE
33% and 28% of the
under construction units
2007 2008
2009
2010
2011
2012*
are located in West and

East Pune respectively
No. of Units
200,000
10%
160,000
120,000
80,000
23%
20%
13%
9%
8%
40,000
Stock
% of Unsold Units
Development of Hinjewadi as an IT/ITeS

destination has led to an unprecedented growth
of the western part of the city in the last ten years.
Residential locations that are in close proximity
to Hinjewadi such as Aundh, Baner, Pashan and
Wakad have immensely beneted from the large
number of IT/ITeS jobs created here. Availability
of large tracts of vacant land at aordable prices
and excellent road connectivity with the city
centre has led to the rapid development of this
zone.
Emergence of the IT/ITeS sector along with the
setting up of various manufacturing units in Pune
over the last decade has resulted in the citys real
estate market expanding in all four directions.
Since 2007, the city has witnessed the launch of
more than 200,301 units of which 154,874 units
have been absorbed till Q3 2012, resulting in
23% remaining unsold. The percentage of unsold
units has witnessed an uptrend in the last few
years. It has increased from 9% in 2009 to 23% in
Q3 2012 as the absorption rate has not been
able to match the pace of new launches. The
period witnessed the launch of 124,561 units, of
which only 86,854 units were absorbed.

CONSTRUCTION UNITS
18%
33%
28%
2%
19%
Central
West
North
South
East
INVESTMENT
advisory REPORT
IT/ITeS, Auto
Real Estate Drivers
and
Engineering
sectors are the
Service Sector
Rail Network
Road Network
primary employment
IT/ITeS Sector
Auto & Auto Ancillaries
Pune Metro Rail Corridor I & II
Ring Road
Engineering
drivers
CONNECTIVITY
DESCRIPTION
Old MumbaiPune Highway
Starts at Shivaji Nagar towards Mumbai

via Pimpri Chinchwad
A vital road connecting Pimpri Chinchwad with

Central Pune
Mumbai-Pune
Bypass Road (NH-4)
Connects Katraj in the South Pune with

Mumbai-Pune Expressway and Pimpri
Chinchwad in the North
Provides seamless connectivity with Hinjewadi

in West, Mumbai-Pune Expressway in North
and Pune-Bangalore Highway in the South
Pune Nashik
Highway (NH-50)
Starts at Kasarwadi towards Nashik in

the North via Chakan
Connects North Pune markets like Bhosari and

Moshi with the city center
Pune Solapur
Highway (NH-9)
Starts from Camp in the city centre

towards Solapur in the East
Provides easy connectivity with Hadapsar in

East Pune from the city centre
Pune is connected
through
roads
4 major arterial

CONNECTIVITY
DESCRIPTION
CURRENT
STATUS
EXPECTED
COMPLETION
Outer Ring
Road I
Theur Phata
This road will provide direct
(NH-9) - Wagholi - connectivity between NH- 9 in
Chimbli (NH-50)
East Pune and NH-50 in North Pune
Feasibility study
and preparation of
a detailed project
report
2017-18
Outer Ring
Road II
Chimbali Phata
(NH-50) - NH-4 Pirangut
Easy access between North and

West Pune
Feasibility study
and preparation of
a detailed project
report
2017-18
Outer Ring
Road III
Pirangut Sinhagad - PuneBangalore

Highway (NH-4)
Will connect West Pune with

Sinhagad and Pune-Bangalore
Highway in South Pune
Feasibility study
and preparation of
a detailed project
report
Post 2018
Outer Ring
Road IV
Katraj (NH-4) Theur Phata

(NH-9)
Will directly connect NH- 4 in the

South and NH- 9 in East Pune
Feasibility study
and preparation of
a detailed project
report
Post 2018
INVESTMENT
advisory REPORT

Phase I of the metro from
Ramwadi to Wanaz is
CONNECTIVITY
DESCRIPTION
CURRENT
STATUS
EXPECTED
COMPLETION
Ramwadi - Pune
Station - Wanaz
Will connect the heavy trac route

between East and West Pune
Undergoing
detailed technicalfeasibility study
2017-18
Approval stage
Post 2018
expected to be completed
by
2017-18
Pune Metro
Rail Corridor I
Pune Metro
Pimpri Chinchwad - Will enhance connectivity between
Rail Corridor II Shivaji Nagar North and South Pune
Swargate
Employment Indicators in Pune

Currently the IT/ITeS
sector accounts for
74%
of the total
oce stock
46% of Pune's oce
Proximity to Mumbai has always been a positive

factor for Pune and has enabled it to attract
investments from various companies to set up
their manufacturing plants here. Auto & Auto
Ancillary and Engineering sectors are the largest
employers among the various manufacturing
industries present in Pune. The emergence of
Chakan and Ranjangaon as the new
manufacturing hubs in the periphery of Pune has
led to the setting up of plants by companies such
as Volkswagen, Mahindra & Mahindra, Fiat and
Apollo Tyres.
Going forward, we expect the Auto & Auto
Ancillary sector to be one of the driving factors for
Punes growth. We forecast the output of
Maharashtras Auto & Auto Ancillary industry to
grow at an annual average rate of 17% over the
next ve years. The presence of a large number of
manufacturing plants in its vicinity will
immensely benet Pune.
space stock is located in

West Pune
Over the years, the IT/ITeS sector has emerged

the largest employer in Pune and reshaped its
real estate market. The setting up of Rajiv Gandhi
Infotech Park in Hinjewadi resulted in companies
such as Infosys, Wipro, TCS and Tech Mahindra
establishing their global delivery centres here.
Currently the IT/ITeS sector accounts for 74% of
the total oce stock and this share is expected to
go up further as new IT/ITeS oces become
operational in the coming years.
The oce space market in the city has witnessed
tremendous growth in the last six years with the
total oce stock increasing more than three
times, from 20.4 mn. sq.ft. in 2007 to 64.7 mn.
sq.ft. in Q3 2012. However, the absorption rate
has been slowing down with each passing year.
This has led to a gradual rise in the vacancy level.
The total occupied space as of Q3 2012 stands
at 48.2 mn. sq.ft., resulting in a vacancy level of
26%. The slowdown in the IT/ITeS sector coupled
with high vacancy levels in the existing stock,

OFFICE SPACE STOCK
5%
32%
46%
74%
26%
14%
3%
Central
West
North
South
East
INVESTMENT
advisory REPORT
90.5 mn. sq.ft. of oce

space stock is expected to
be operational by 2017
have compelled many developers to delay the

launch of new supply by 1-2 years.
Considering this, we expect an additional 25.8
mn. sq.ft. of oce space to become operational
in the next ve years taking the total stock to 90.5
mn. sq.ft. by the end of 2017.
PUNE OFFICE SPACE DYNAMICS
100
90
80
70
Going forward, we expect the IT/ITeS companies

preference for Pune to remain high due to the
availability of a large talent pool and willingness
of employees to relocate here. This will ensure a
healthy rate of absorption in the coming years
and eventually reduce the vacancy levels to 17%
by the end of 2017. We have forecasted an
incremental demand of 26.7 mn. sq.ft. in the next
ve years taking the total occupied space in the
city to 74.9 mn. sq.ft. by 2017.
60
50
40
30
20
10
Before 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E
2008
STATUTORY COSTS
AND MARKET NORMS
STATUTORY COSTS
26.7
mn. sq.ft. oce
space is forecasted to be
absorbed in the next 5
years
COST
DETAILS
Stamp Duty
5% (Higher of agreement value or ready reckoner rate)
Registration
1% upto a maximum of `30,000
1% on agreement value
Service Tax
3% on agreement value. Levied on under construction properties.
MARKET NORMS
NORM
DETAILS
Time line for property registration
Within 15 days of booking
Re-sale before possession
Allowed subject to payment of transfer charges
Loading
30% on carpet area
Brokerage
1-2% of property value
INVESTMENT
advisory REPORT
Re-sale before
possession is not allowed
in most of the projects
The attractiveness of
Pimpri
Chinchwad
as a manufacturing hub is
slowly fading out, with
many companies shifting
their units to alternate
cheaper locations
While
16.8 mn. sq.ft. of
incremental oce stock

will be added to the West
Zone, the East will add
only 9 mn.sq.ft.
PREFERRED
ZONE IN
PUNE
Pune residential market has historically been an
end-user driven market which has ensured
minimal price volatility. However, 2007 onwards
investor participation has witnessed an
increasing trend with local investors as well as
those from Mumbai buying properties in the
peripheral areas. This is despite the fact that
most of the developers discourage investor
participation by restricting re-sale before
possession.
Employment growth and infrastructure
development will be the primary drivers of the
real estate market in Pune in the coming years.
However, the impact of infrastructure
development will be comparatively low, as most
of the upcoming infrastructure projects are still at
a very nascent stage and will not be operational
before 2018. Growth in employment will be largely
from the IT/ITeS sector followed by the
manufacturing sector.
North Pune, where majority of the existing
manufacturing plants are located, will benet
from the growth in the Auto & Auto Ancillary
sector. However, the impact of this will be limited
as no new units are being set up here due to the
paucity of large vacant land parcels and high cost
of existing land. The attractiveness of Pimpri
Chinchwad as the manufacturing hub is slowly
fading out, with many companies shifting their
units to alternate cheaper locations. Most of the
new manufacturing plants are coming up along
the periphery of Pune like Chakan and
Ranjangaon which are located 32 km. and 50 km.
away from the city centre respectively. Hence, no
signicant benet of incremental employment
will be felt on North Pune.
East and West Pune will accrue the maximum
benet of incremental employment in Pune, as
more than three-fourth of the existing oce
space stock and 95% of the upcoming stock will
be located here. However, within these two
zones, the West Zone will account for majority of
the upcoming oce space. While 16.8 mn.sq.ft.
of incremental oce stock will be added to West
Zone, the East will add only 9 mn.sq.ft. In
addition to this, oces in East Pune are spread
across dierent destinations such as Hadapsar,
Kharadi, Kalyani Nagar, Magarpatta City and
Nagar Road. This distributes the demand for
residential space evenly across these
destinations, thereby reducing the preference for

any single location. In contrast to this, more than
80% of the oces in West Pune are located in
Hinjewadi. This increases the importance of the
destinations that are located in close proximity to
Hinjewadi.
South Pune will not witness any signicant gain
in the residential market, as it is primarily
dependent on East and West Pune where most of
the employment hubs are located. Additionally,
the prices here are equivalent to most of the
emerging destinations of East and West Pune
leaving little room for further appreciation.
Similar is the case with Central Pune.
The above mentioned reasons make a compelling
case for the preference of West Pune over other
zones. Although in terms of social infrastructure
West Pune still lags; we expect this gap to be
lled up rapidly in the coming years. A large
number of educational institutes, organized retail
and entertainment avenues are expected to
become operational here in the next ve years.
WEST PUNE
Maharashtra governments push to the IT/ITeS
sector by setting up of the Rajiv Gandhi Infotech
Park in Hinjewadi has changed the face of West
Pune. Currently, Phase I, II and III of the park are
operational with campuses of IT/ITeS majors such
as Infosys, Wipro, TCS, Tech Mahindra and
Cognizant present here. Apart from this, various
companies are operating out of the Dlf Akruti IT
SEZ, Blueridge SEZ, Embassy Techzone and
Ascendas International Tech Park which together
account for over 5 mn.sq.ft. of oce stock. Plans
for further expansion into Phase IV and V are
underway and land acquisition is already in

TREND IN WEST PUNE
2007
2008
2009
2010
2011
2012*
16,710
14,947
13,850
11,150
10,513
5,865
Launches
INVESTMENT
advisory REPORT
WEST PUNE MAP
NH
DEHUROAD
CANTOMENT
To
h
K
a
d
n
a
la
CHIKHALI
m
Mu
iba
n
Pu
e
Ex
pr
es
sw
ay
CHINCHWAD
RAVET
NH
PIMPRI
TATHAWADE
PIMPRI
CHINCHWAD
NH
WAKAD
HINJEWADI
BALEWADI
Baner Ro
ad
BANER
AUNDH
SUS
PASHAN
LAVALE
BAVDHAN
Major Roads
PIRANGUT
Railway Line
Benchmark location
Paud Road
Paud
Road
oa
eR
rv
Ka
Top destination
Employment Hubs
INVESTMENT
advisory REPORT
Over the next 5 years,
Hinjewadi is set
to become one of the
largest oce space hubs
in India
From 2007 to Q3 2012, West

Pune has witnessed the
launch of
process. Over the next ve years, Hinjewadi is set

to become one of the largest oce space hubs in
India, which will benet the adjoining residential
markets.
Preference of employees in staying close to their
work place and aordable pricing as compared to
Central Pune will drive the demand for housing in
this zone. Destinations along the route to
Hinjewadi such as Baner, Pashan, Bavdhan and
Wakad have already emerged as preferred
residential locations for employees working here.
Going forward, destinations located within
Hinjewadi and along the Mumbai-Pune Bypass
Road will also witness similar phenomena.

From 2007 to Q3 2012, West Pune has witnessed
the launch of 73,035 units. The absorption during
the same period has been 57,150 units with 22%
remaining unsold. The unsold units percentage
increased considerably post 2009; 28,797 units
were launched during 2010 and 2011. The unsold
units percentage has moved up from 6% in 2009
to 22% in Q3 2012. Developers have taken stock
of this oversupply situation and hence reduced
the number of new launches. Only 41 new
projects consisting of 5,655 units have been
launched in 2012.
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF WEST PUNE

2007 2008
73,035 units
2009
2010
2011
2012*
22%
17%
No. of Units
10%
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Stock
The unsold units

percentage has moved up
from 6% in 2009 to
in SEPTEMBER 2012
22%
6%
4%
5%
% of Unsold Units
EXISTING
UPCOMING
INFRAINFRASTRUCTURE STRUCTURE
MUMBAI-PUNE BYPASS ROAD
OUTER RING ROAD II & III
The Mumbai-Pune Bypass Road is an arterial road

in West Pune that starts at the Mumbai-Pune
Expressway in the north and connects with the
Pune-Bangalore highway near Katraj in the south.
The road passes through the entry point of
Hinjewadi at Wakad and acts as a vital transit
route for the various residential destinations
located in the West Zone. Since it is a four-lane
highway with two-lane service roads, the time
taken to various locations on this route is
marginal. The road provides multiple access
points towards the city centre through the
Kalewadi Road, Baner Road and Pashan-Sus
Road. Residential development in West Pune has
been centred along the various access points of
this road.
The Outer Ring Road, rst proposed in 2007, will

be a 170 km. long ring road in the periphery of
Pune and Pimpri Chinchwad which will be
developed by the Maharashtra State Road
Development Corporation (MSRDC) in four
phases. The objective of this road is to reduce
trac congestion within the city by diverting
outstation vehicles onto this road.
Phase II of the Outer Ring Road will start from
Chimbali Phata on the Pune-Nashik Highway (NH50) in the north and connect Pirangut in the west
via Mumbai-Pune Highway and Rihe. Phase III will
connect Pirangut with the Pune-Bangalore
Highway (NH-4) in the south via Sinhagad. These
roads will pass through the western side of
INVESTMENT
advisory REPORT
Residential development in
West Pune has been
centred along the various
Hinjewadi and directly connect with the MumbaiPune Expressway in north the and PuneBangalore Highway (NH-4) in the south thereby
reducing the strain on the existing Mumbai-Pune
Bypass Road.
access points of the
Mumbai-
MSRDC in June 2012 invited global bids for

appointment of consultants to carry out the
feasibility study and prepare a detailed project

report. The construction of Phase II and III will
take a significantly longer time as a large number
of natural bodies and defence land are located on
this route. We expect Phase II to be ready by 2018
and Phase III post 2018. Other than the Outer
Ring Roads, there are no major infrastructure
projects planned in West Pune.
Pune Bypass
Road
EMPLOYMENT INDICATORS
IN WEST PUNE
The major employment driver in West Pune is the
IT/ITeS sector. Since 2008, more than 22 mn.
sq.ft. of office space has been constructed in this
zone including the captive offices of companies
like TCS, Infosys, Wipro and Cognizant. In the
next five years, an additional 16.8 mn. sq.ft. of
office space will become operational taking the
total office stock in West Pune to 47.3 mn. sq.ft.
by the end of 2017.
The Outer Ring Road will

be
170 km. long, along
the periphery of Pune and

Pimpri Chinchwad
Currently 28% of the total office stock in West

Pune is lying vacant as the slowdown in the
IT/ITeS sector has compelled many companies to
delay their expansion plans. However, the slow
pace of delivery in new projects and improvement
in absorption rate in the coming years will bring
down the vacancy levels to 16% by 2017. We
forecast an incremental absorption of 17.6 mn.
sq.ft. in the next five years taking the total
occupied space to 39.5 mn. sq.ft. by 2017.
employees for residing closer to their workplace

is high, its impact will be positively felt on the
demand for residential units here.
WEST PUNE OFFICE SPACE

DYNAMICS
50
40
30
20
10
Before 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E
2008
The traction expected in West Punes office space

is bound to create additional employment in the
zone. Since the preference among IT/ITeS
INVESTMENT DESTINATIONS
IN WEST PUNE
Employment opportunities in the IT/ITeS sector
will be the primary driver of the residential market
in West Pune. Although prices will rise in majority
of the destinations located in this zone, there will
be certain destinations that will outperform
others. Destinations that are in close proximity to
Hinjewadi or located along the Mumbai-Pune
Bypass Road will witness higher price
appreciation as compared to farther locations
due to the concentration of office space here.
In the last ten years, locations such as Baner,
Balewadi, Pashan and Bavdhan have witnessed

considerable price appreciation, as they are not
only located close to the city centre but also are
easily accessible from Hinjewadi. Rapid
development of physical infrastructure, organized
retail, social infrastructure and entertainment
avenues over the last couple of years have
resulted in West Pune becoming a self-sufficient
zone. This has reduced the need for staying
closer to the city centre. Instead, proximity to the
workplace has become a key factor when buying
INVESTMENT
advisory REPORT
We forecast an
incremental absorption of
17.6
mn. sq.ft. of office
space in West Pune in the

next 5 years
a house. These factors have led to the emergence

of newer residential destinations like Hinjewadi,
Wakad, Tathawade and Ravet. Apart from being in
close proximity to Hinjewadi, prices in these
destinations are also significantly lower as
compared to Baner, Balewadi, Pashan and
Bavdhan. The difference in price will eventually
narrow down resulting in higher appreciation for
these locations.
Going forward, we expect Hinjewadi, Wakad,
Tathawade and Ravet to witness the maximum
amount of price appreciation in Punes residential
market. While Hinjewadi is located within the
Rajiv Gandhi Infotech Park, the other three are
situated along the Mumbai-Pune Bypass Road.
The primary reasons in brief for these four
destinations to outperform others in Pune over
the next five years are:
Pune will witness an incremental demand of
26.7 mn.sq.ft. of office space over the next five
years primarily driven by the IT/ITeS sector.
66% of this will be within West Pune.
Unlike East Pune, 80% of offices in the west
are concentrated in Hinjewadi. This increases
the importance of residential markets located
in close proximity to Hinjewadi.
With West Pune emerging a self-sufficient zone
over the years, the need for residing closer to
the city centre has reduced. Instead, proximity
to the workplace has gained paramount

importance for buying a house.
Hinjewadi, Wakad, Tathawade and Ravet
address all the above factors due to their
favourable location
Additionally, prices in these destinations are still
at a significant discount compared to nearby
locations of Baner, Balewadi, Pashan and
Bavdhan. This discount will narrow down in the
coming five years.
Most of the factors that will drive the residential
prices in West Pune will be common for all the
destinations located here. However, the degree of
influence of these factors on each of the
destinations will be different depending on their
location in West Pune. Aundh, which is the most
established destination in West Pune, has been
considered as the benchmark for comparing
prices in this zone and going forward we expect
all the other destinations located here to follow
the price trend of Aundh.
Currently the residential prices in Hinjewadi,
Wakad, Tathawade and Ravet are significantly
lower as compared to Aundh. We believe that
over the next five years, this discount will narrow
down due to the reasons listed earlier.
INVESTMENT
advisory REPORT
We expect Hinjewadi,
Wakad, Tathawade and
Ravet to witness the
DESTINATION
HINJEWADI
maximum amount of price

appreciation
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF HINJEWADI

2007 2008
2009
2010
2011
28%
No. of Units
20,000
15,000
24%
18%
17%
10,000
14%
12%
5,000
Stock
% of Unsold Units
The growing preference for the walk-to-work

concept among the IT/ITeS employees has led to
the emergence of Hinjewadi as the most sought
after residential location. The presence of various
integrated township projects within Hinjewadi
takes care of all the necessary requirements of
the residents such as education, organized retail
and entertainment.
Currently the percentage
2012*
onwards, resulting in an increase in the

percentage of unsold units with each passing
year. Currently the percentage of unsold units
stands at 24%.
Since 2007, 15,070 units have been launched, of

which 11,466 have been absorbed till Q3 2012.
The launch of various township projects has
ensured a steady supply of new units 2010
Going forward, we expect the absorption rate to

increase due to the reasons mentioned earlier
and this will positively impact prices in Hinjewadi.
Currently, Hinjewadi prices are 49% lower than
Aundh. We forecast this discount to narrow down
to 29% by the end of 2017 resulting in Hinjewadi
`8,000/sq.ft.

TREND IN HINJEWADI
PRICE FORECAST
of unsold units stands at
24%
in Hinjewadi
2007
2008
2009
2010
2011
2012*
2012
4,214
3,750
2017E
4,076
`11,200
`7,800
`8,000
`4,000
1,881
975
175
Launches
Aundh
Hinjewadi
INVESTMENT
advisory REPORT
PRICE MOVEMENT
Hinjewadi to increase by
100% from
2012 to 2017
12,000
10,000
29%
8,000
6,000
49%
4,000
2,000
BEFORE
2008
Hinjewadi
2008
2009
2010
2011
2012
2013E 2014E 2015E 2016E 2017E
Discount Margin
Aundh
Investment Options in Hinjewadi

Ticket size in Hinjewadi
starts from
`3.4 mn.
for a 2 BHK
SELECT PROJECTS
Project
Developer
No. of
Units
Launch Completion
Date
Date
1220 - 1800
3BHK
4.9 - 7.2
Megapolis
Kumar
Properties
and ABIL
4000
Mar-08 Dec-13
860 - 1370
2BHK
3.4 - 5.5
Life
Republic
Kolte Patil
Developers
2100
Feb-11
Dec-14
Oct-07
Dec-13
571 - 930
2.3 - 3.7
Blue Ridge Paranjape

Schemes
2000
1BHK
The Crown
Greens
TCG Real
Estate
165
Sep-11
Mar-14
Sovereign
Saarrthi
Group
172
Dec-07 Mar-13
INVESTMENT
advisory REPORT
From 2007 till Q3 2012, a

total of
15,570 units
DESTINATION
WAKAD
haS been launched of

which
12,864 units have
been absorbed in Wakad
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF WAKAD

2007
2008
2009
2010
2011
No. of Units
13%
15,000
10,000
7%
8%
7%
4%
91% in the coming 5
% of Unsold Units
Till a few years back, Wakad was a non-descript

place. However, proximity to the Rajiv Gandhi
Infotech Park in Hinjewadi has led to many
IT/ITeS professionals preferring to reside here as
the travel time to work is hardly 10 minutes by
road. Additionally, it is well connected with
nearby locations such as Baner, Aundh, Pashan
and Bavdhan. Despite these reasons, prices in
Wakad have been historically at a discount as
compared to these nearby locations.
Wakad to increase by
17%
5,000
Stock
2012*
Availability of vast tracts of vacant land attracted

the attention of many developers and led to the
launch of more than 100 projects in Wakad since
2007. From 2007 till Q3 2012, a total of 15,570
units have been launched of which 12,864 units
have been absorbed. More than 50% of the total
years
units were absorbed during 2007 and 2008. Post

2008, the absorption rate has considerably
reduced due to the slowdown in the IT/ITeS
sector. Currently, 17% of the total units remain
unsold which is signicantly higher than 4% in
2007.
Going forward, we expect the absorption rate to
remain healthy, as a growing number of IT/ITeS
companies have begun to prefer Hinjewadi for
setting up their operations. Moreover, the drop in
new launches in 2012 will help in reducing the
unsold inventory of previous years. The traction
expected in Wakad will reduce the price discount
from 42% to 23% as compared to Aundh in the
coming ve years. We forecast the prices to
increase from `4,500/sq.ft. to `8,600/sq.ft. by
the end of 2017.

TREND IN WAKAD
PRICE FORECAST
2007
2008
2009
2010
2011
2012*
2012
2017E
`11,200
4,234
`7,800
`8,600
3,081
3,077
`4,500
2,576
1,106
1,495
Aundh
Launches
Wakad
INVESTMENT
advisory REPORT
PRICE MOVEMENT
A drop in new launches in
2012 will help in

reducing the unsold
inventory of THE previous
years
12,000
10,000
23%
8,000
6,000
42%
4,000
2,000
BEFORE
2008
Wakad
2008
Aundh
2009
2010
2011
2012
2013E 2014E 2015E 2016E 2017E
Discount Margin
Investment Options in Wakad

Ticket sizeS in Wakad start
from
2 BHK
`3.6 mn. for a

1600 - 2700
7.2 - 12.2
1470 - 1750
6.6 - 7.9
800 - 1500
3.6 - 6.8
580 - 950
2.6 - 4.3
SELECT PROJECTS
Project
Developer
No. of
Units
Launch Completion
Date
Date
Pristine
Prolife
Pristine
Properties
384
Sep-11
Dec-13
Pride Purple
Park
Turquoise Group
192
Jun-11
Oct-14
Kalpataru Kalpataru
Splendour
188
May-10 Dec-13
Casa
Imperia
Aum Housing 290
Jan-11
Dec-13
Elite
Homes
DNV Builders 376
Mar-11
Feb-13
INVESTMENT
advisory REPORT
Tathawade can be
considered as an
extension of Wakad with
only
4 km. separating
them
DESTINATION
Tathawade
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF TATHAWADE
2010
2011
2012*
27%
1,400
22%
No. of Units
1,200
1,000
800
600
4%
400
200
Stock
In the next 5 years, the

price trend in Tathawade
will mirror that of Wakad
as these two markets are
closely
% of Unsold Units
Tathawade can be considered as an extension of

Wakad with only 4 km. separating them. It is
located on the eastern side of the Mumbai-Pune
Bypass Road and can be accessed from Hinjewadi
through the Dange Chowk Road. Tathawade has
similar characteristics as Wakad except that the
prices are 5% lower here.
coming years as the destination will observe an

increase in absorption rate and lesser number of
new launches.
Tathawade is a relatively new residential market

with most of the projects launched only during
the last three years. Of the 1,415 units launched
since 2010, 1,038 units have been absorbed till
Q3 2012. Although the percentage of unsold
units is currently high, we expect it to fall in the
In the next ve years, the price trend in

Tathawade will mirror that of Wakad as these two
markets are closely linked together. However, the
dierence in price between them will reduce over
the years and prices in Tathawade will be almost
equal to that of Wakad by 2017. Similar to Wakad,
the price discount in Tathawade as compared to
Aundh will reduce from 45% to 24% resulting in
`8,500/sq.ft. by 2017.

TREND IN TATHAWADE
PRICE FORECAST
linked
2010
2011
2012*
2012
2017E
`11,200
`7,800
876
`8,500
`4,300
305
234
Aundh
Launches
Tathawade
INVESTMENT
advisory REPORT
PRICE MOVEMENT
Tathawade to increase by
98%
in the coming 5
years
12,000
10,000
24%
8,000
6,000
45%
4,000
2,000
2010
Tathawade
2011
Aundh
2012
2013E
2014E
2015E
2016E
2017E
Discount Margin
Investment Options in Tathawade

1250 - 1500
3BHK
5.4 - 6.5
920 - 1200
2BHK
4.0 - 5.2
590 - 950
1BHK
2.5 - 4.1
SELECT PROJECTS
Project
Developer
No. of
Units
Launch Completion
Date
Date
Elementa
Akshar
Developers
850
Oct-10
Dec-14
Ganga
Aurum
Park
Goel Ganga
Deployment
144
Dec-11
Jun-14
The Nook
Bhojwani
Homes
282
Jun-12
Dec-14
Palladio
Vilas
Javdekar
Group
150
Sep-11
Sep-13
INVESTMENT
advisory REPORT
We forecast prices in Ravet

to increase by
97% in
DESTINATION
RAVET
the coming 5 years
RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF RAVET

2010
2011
2012*
2,000
30%
1,800
1,600
17%
No. of Units
1,400
16%
1,200
1,000
800
600
400
200
Stock
Similar to Tathawade, residential activities in

Ravet started post 2010 and a total of 1,744 units
has been launched since then. Since the
destination is relatively new, the absorption rate
has been slow and only 1,216 units have been
absorbed till date resulting in 30% of the total
units remaining unsold. However, going forward

we expect the absorption rate to increase, backed
by the incremental employment in Hinjewadi and
lower prices compared to nearby destinations.
In the coming years, the price trend in Ravet will
mirror that of Wakad and Tathawade as these
markets are closely linked together. However,
prices in Ravet will continue to remain at a
marginal discount compared to these
destinations due to its farther location from
Hinjewadi. Similar to Wakad and Tathawade, the
discount in price of Ravet as compared to Aundh
will reduce from 49% to 30% resulting in prices
increasing from `3,950/sq.ft. to `7,800/sq.ft by
2017.

TREND IN RAVET
PRICE FORECAST
Ravet, which is further 5 km. north of Tathawade

and located on the eastern side of the MumbaiPune Bypass Road is another destination that will
immensely benet from the growth in
employment in Hinjewadi. The destination has
historically remained at a discount as compared
to Wakad and Tathawade, as it is located farther
north of Hinjewadi.
Residential activities in
Ravet started post 2010
and a total of
1,744
units has been launched
% of Unsold Units
since then
2010
2011
2012*
2012
757
2017E
`11,200
715
`7,800
`7,800
`3,950
272
Aundh
Launches
Ravet
INVESTMENT
advisory REPORT
PRICE MOVEMENT
Ticket sizeS in Ravet start
from
`3.2 mn. For
a 2 BHK
12,000
10,000
30%
8,000
6,000
49%
4,000
2,000
2010
Ravet
Aundh
2012
2011
2013E
2014E
2015E
2016E
2017E
Discount Margin
Investment Options in Ravet

SELECT PROJECTS
1178 - 1360
3BHK
4.7 - 5.4
Project
Developer
820 - 1200
2BHK
3.2 - 4.7
Celestial
City
Rama Group 1200

and Pharande
Spaces
Mar-10
Dec-16
700 - 850
1BHK
2.8 - 3.4
Silver
Gardenia
Rohan
Construction
240
Nov-11
Dec-13
Serene
Scapes
S. D. Tapkir
138
Jun-11
Jul-13
No. of
Units
Launch Completion
Date
Date
INVESTMENT
advisory REPORT
DISCLAIMER
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INDIAS TOP RESIDENTIAL

This report identies the

Balancing return with the associated risk is the

property is generally done with leverage in the

IMPORTANT TERMS USED IN THE REPORT

The urban region as dened by the regional development authority

A Zone is a geographical division of the metropolitan region comprising of several

Identied based on the nearest price contour, a benchmark location is an established

Size of property: 1000 sq. ft.

promising cities and zones

Investment horizon: 5 years

From the perspective of

In most cases, investment

understanding of the property market along with

Although the prominence of real estate as an

Regional growth within a

APPROACH FOR IDENTIFICATION OF THE TOP RESIDENTIAL

city is anything but even

Top 100 cities

From the growth and

Selection of top cities in the country

The top residential destinations have been picked

expenditures were taken as proxies for

Selection of zone within a city

the kind of employment generated by such

The service sector has

accordance with its position in the value chain in

development that will have an impact on

REAL ESTATE DRIVERS

Besides the quantum of

Commercial Oce Space

Education & Healthcare

Basic utilities: Water & Power

benchmark location for each destination has

Over the foreseeable

beneciaries because they

continuing with our

construction and put an upward pressure on

While dynamics of a residential market with

In the second stage, the price discount of a

Our analysis shows that the occurrence of one of

REGION-WISE TOP INVESTMENT DESTINATIONS FOR NEXT 5 YEARS

Forecasted Price Appreciation in Percentage

Additionally, in cases where land availability is

in cases where land

Risk factors for our outlook

Our forecast for occupied oce space relies

emergence as a signicant employment provider

`3,200/sq.ft. to `15,000/sq.ft. and investor

ranks on the investment return scale.

. The IT/ITeS industry is the driving force behind

the maximum number of promising residential

Bengaluru (also known as Bangalore), the capital of Karnataka is located

Average Annual Growth

Source: Census 2011, Knight Frank Research

Region (BMR) is spread over

741 sq. km.

The BMR market can be divided into ve broad

last two decades

MG Road, Vitthal Mallya Road,

Malleswaram, Rajajinagar, Tumkur

Banaswadi, Hebbal, Bellary Road,

Whiteeld, Old Airport Road, Old

Koramangala, Sarjapur Road, HSR