M A R K E T B E AT BENGALURU Residential Q4 2019

North Bengaluru corridor leads in new launches Q4 launches in the city were lower by 27% on a q-o-q basis, while on an annual comparison, a mere 1.4% decline was seen in the residential units >5,800 NEW UNIT LAUNCHES IN Q4 2019 launched in the city in 2019. North Bengaluru, a key emerging residential corridor saw a significant increase in new launches and accounted for a 65% share of residential supply added in Bengaluru in Q4. This corridor’s share in the annual launches was 39%, highlighting its growing prominence over the last few quarters, driven by the increase in commercial office activity, making it another upcoming homogeneous hub in the city. Growth of newer 74% SHARE OF MID SEGMENT IN residential pockets in the vicinity of the International Airport has resulted in expansion of the city further northwards. With prominent developers like NEW UNIT LAUNCHES (Q4 2019) Century Real Estate Holdings, Karle Homes and Prestige Group announcing their projects in prominent locations like and Nagawara and upcoming areas like Bagalur while focusing on ticket size to ensure greater affordability, most of the launches in these parts of the city during the SHARE OF NORTHERN SUB-MARKET quarter were in the mid segment and affordable category. Other locations accounting for unit launches in Q4 were and Chandapur in 65% IN NEW UNIT LAUNCHES (Q4 2019) Far South and Mysore Road in West sub-markets with mainly affordable and mid-segment projects getting launched here during the quarter.

Mid segment remains the most popular category The mid segment price category has seen a steady demand base and continues to remain the most preferred category for developers as well. This segment accounted for three-fourths of all quarterly launches and held a share of over two-thirds in the annual unit launches in the city. While, overall launches were lower on a y-o-y basis, this segment has managed to see a growth of 12-15% y-o-y in absolute units terms in 2019. The North sub- RESIDENTIAL INDICATORS Q4 2019 market was again the leader, contributing the maximum share to the mid segment launches in Q4. The affordable segment also remains a key category, accounting for one-fourth share in the city’s quarterly and annual launches. With developers continuing to focus on the low to mid segment Y-O-Y 12-Months Change Forecast category launches in order to target higher sales, supply in the mid and affordable category is expected to remain high in the coming quarters as well.

New Launches Short term price movement in select micro-markets While the price movement has been sluggish over the past couple of years, there has been some growth in the mid segment category across select locations where demand levels have held steady. Established and preferred residential locations in the Central/ Off Central (Brunton Road, Artillery Units Sold Road, , ) and North-west (Malleshwaram, ) quadrants of the city have witnessed a 2-3% q-o-q rise in property prices while the y-o-y increase is slightly higher. In the wake of a widespread stress and sluggish sales momentum in the residential sector, the city Average Capital has managed to retain its sales momentum over the past year or so which has supported some upward movement in prices. Values (INR/sf) Going forward, further improvement in buyer confidence and improvement in connectivity links, largely driven by the metro expansion, property prices are likely to find further support for growth in the medium term.

SIGNIFICANT PROJECT LAUNCHED IN Q4 2019

BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE*(INR/SF)

Karle Vario Homes Nagawara Karle Homes Pvt. Ltd. 400 8,520

Godrej Nurture Electronic City Phase Godrej Properties 684 7,600 1 Provident Equinox Mysore Road Provident Housing 672 4,550

Century Horizon Yelahanka Century Real Estate Holdings 152 6,999 M A R K E T B E AT BENGALURU Residential Q4 2019 RENTAL VALUES AS OF Q4 2019 CAPITAL VALUES AS OF Q4 2019 AVERAGE QUOTED QoQ CHANGE YoY SHORT TERM AVERAGE QUOTED QoQ CHANGE YoY SHORT TERM SUBMARKET SUBMARKET RENT (IND/MONTH) (%) (%) OUTLOOK RENT (IND/MONTH) (%) (%) OUTLOOK High-end segment High-end segment Central 18,000-30,000 0% 0% South 9,000-12,500 0% 13% Central 150,000-350,000 0% 0% East 7,500-11,500 0% 15% South 60,000-120,000 0% 0% North 8,000-12,500 0% 8% East 85,000-300,000 0% 0% Mid segment Central 9,500-15,000 2% 7% North 70,000-200,000 0% 0% East 4,600-6,600 0% 9% Mid segment South East 5,000-6,750 0% 7% Central 70,000-100,000 0% 0% North 5,500-7,500 0% 24% South East 25,000-45,000 0% 0% South 5,500-7,500 0% 18% Off Central I 8,000-12,000 3% 18% North West 25,000-35,000 0% 0% Off Central II 7,500-9,500 0% 13% West 20,000-30,000 0% 0% North West 6,500-7,800 2% 12% East 25,000-35,000 0% 0% Far South 3,750-4,500 0% 0% West 4,000-5,000 0% 0% SIGNIFICANT PROJECT COMPLETED IN Q4 2019 BUILDING LOCATION DEVELOPER UNITS LAUNCHED UNIT SIZE(SF) Shriram Luxor Hennur Road Shriram Properties 450 1,317-1,590 Sobha Arena Kanakapura Road Sobha Developers 298 1,290-1,875 Rohan Sharma Director, Research Services SIGNIFICANT PROJECTS UNDER CONSTRUCTION – TO BE COMPLETED IN NEXT 12 MONTHS +91 124 4695555 /[email protected] BUILDING LOCATION DEVELOPER UNITS LAUNCHED EXPECTED COMPLETION Godrej United W hitefield Godrej Properties 516 Q4 2020 Kapil Kanala Assetz 38 & Banyan CV Raman Nagar Assetz Property Group 38 Q3 2020 Associate Director, Research Services Data collated from primary and secondary resources. Estimations are subject to change +91 40 40405555 /[email protected] * Rental and capital values have been depicted only for key submarkets cushmanwakefield.com ** Quoted capital value on carpet area based on agreement values which includes, Base Rate, Car Parking Charges, Internal Development Charges, etc. A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION The above values for high-end segment are for units typically of 2,000-4,000 sf Cushman & Wakefield (NYSE: CWK) is a leading global The above values for mid segment are for units typically of 1,600-2,000 sf real estate services firm that delivers exceptional value for Affordable housing has been defined as units with a carpet area of 60 sq.mt in metros / 90 sq.mt in non-metros and value up to INR 45 lakhs real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with KEY TO SUBMARKETS Mid Segment approximately 51,000 employees in 400 offices and 70 High-end Segment Central: Brunton Road, Artillery Road, Ali Askar Road, countries. In 2018, the firm had revenue of $8.2 billion Central: , Palace Cross Road, Off Cunningham East: , Whitefield, Old Airport Road, Old Madras Road, Budigere Cross Road, Road, Richmond Road, Sankey Road across core services of property, facilities and project South-east: Sarjapur Road, Outer Ring Road (Marathahalli- Sarjapur), HSR Layout, management, leasing, capital markets, valuation and other South: , Bannerghatta Road, JP Nagar, South: Jayanagar, J P Nagar, Kanakapura Road, Bannerghatta Road, BTM Layout, Banashankari North: Hebbal, Bellary Road, Yelahanka, Doddaballapur Road, Hennur Road, Road services. Off Central: Frazer town, Benson Town, Richards Town, Off Central-I: , Richmond Town, Indiranagar ©2019 Cushman & Wakefield. All rights reserved. The information Dollars Colony Off Central-II: Cox Town, Frazer Town, Benson Town, etc. contained within this report is gathered from multiple sources believed East: W hitefield, Old Airport Road North-west: Malleshwaram, Rajajinagar, Tumkur Road to be reliable. The information may contain errors or omissions and is North: Hebbal, , Devanahalli Far South: Electronic City presented without any warranty or representations as to its accuracy. North-west: Malleshwaram, Rajajinagar, Yeshwanthpur West: Mysore Road, Main Road, Magadi Road