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

Market showing signs of returning confidence While, 2019 saw lower residential launches on a y-o-y basis, some positive sentiment was imparted with Q4 witnessing a 48% q-o-q growth in 2,660 NEW UNIT LAUNCHES IN Q4 2019 launches. With 2,660 units launched, the quarterly launches were highest for the year. Most of the launches were phases of large scale projects, where developers were focused on compact residential units, which fall in the affordable and mid-segment categories. With sales making a sluggish movement towards recovery, a phased manner of launch in the lower ticket sizes was typically the strategy being adopted by developers to ensure SHARE OF MID SEGMENT IN NEW some market traction for the launches. Some of the prominent new launches this quarter are Radiance Suprema, Plutus Residences along with some 58% LAUNCHES IN Q4 2019 of the projects which are expanding such as TCP Altura Phase II and Casagrand Zenith Phase II, where previous phases have sold well and construction was progressing at a rapid pace. SHARE OF SUBURBAN SOUTH I 46% IN NEW LAUNCHES IN Q4 2019 Suburban South I leading the way Suburban South I continues to witness healthy launches due to new commercial developments and infrastructure investments which are driving the residential development in this region. This submarket accounted for 46% of the new residential launches in Q4. OMR remains a pivotal IT corridor of Chennai and with its excellent social and physical infrastructure, continues to see favourable demand dynamics for residential projects as well. With a 23% share, Suburban West was the second-most active residential sub-market in Chennai during the quarter. Strategic road connectivity with North and South Chennai and commercial office development is also driving demand for residential projects in this sub-market and as a result, launches MARKET INDICATORS OVERALL Q4 2019 have remained healthy.

Y-O-Y 12-Months Change Forecast Mid segment shows strong growth New Launches The mid segment continues to dominate the residential launch market with a 58% share of the total launches in Q4. Interestingly, in Chennai, launches in the mid segment category registered highest growth on a q-o-q as well as y-o-y basis, while the affordable unit launches have actually seen a marginal decline y-o-y. Cheaper housing loans and a focus on compact apartment sizes to keep prices steady and a slight demand recovery in Units Sold select micro-markets such as Suburban South were key factors that saw developers launch more mid segment residential projects. Going forward, it is expected that the affordable and mid segment categories will continue to drive launches and contribute to the sales volumes as the market remains in recovery mode. Capital values have continued to remain stable across all sub-markets with stagnancy also predicted in the short-term. Average Capital Values (INR/sf) SIGNIFICANT PROJECT LAUNCHED IN Q4 2019

BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE*(INR/SF) Radiance Sapphire Radiance Realty 105 4,499

Plutus Residence Adyar Baashyaam Group 152 12,499

TCP Altura Phase II Sholinganallur Lancor Holdings Ltd. 182 5,100 M A R K E T B E AT CHENNAI 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 (INR/MONTH) (%) (%) OUTLOOK RATE (INR/SF) (%) (%) OUTLOOK

High-end segment High-end segment Central 100,000-250,000 0% 0% Central 23,000-27,000 0% -9% Off Central - I 90,000-150,000 0% 0% Off Central - I 18,000-23,000 0% 0% Off Central - II 50,000-130,000 0% 0% Off Central - II 12,000-17,500 0% 0% 100,000-250,000 0% 0% East Coast Road 6,000-9,500 0% 0% Mid segment Mid segment Central 50,000-75,000 0% 0% Central 14,000-18,000 0% 0% Off Central- I 45,000-80,000 0% 0% Off Central- I 15,000-18,000 0% 0% Off Central- II 25,000-50,000 0% 0% Off Central -II 8,500-10,000 0% 0% Suburban South - I 5,000-7,500 0% 4% Suburban South - I 22,000-32,000 0% 0% Suburban South - II 4,000-7,500 0% 0% Suburban South - II 15,000-25,000 0% 0% Suburban North 4,200-7,000 0% 0% Suburban West 4,400-8,000 0% 0% East Coast Road 4,500-6,500 0% 5% SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q4 2019 BUILDING LOCATION DEVELOPER UNITS LAUNCHED UNIT SIZE(SF) Emami Tejomaya Navalur Emami Realty 498 498-2021 Rohan Sharma Townsville Sriperumbudur Lancor Holdings Limited 144 906-1197 Director, Research Services +91 124 4695555 /[email protected]

SIGNIFICANT PROJECTS UNDER CONSTRUCTION – TO BE COMPLETED IN NEXT 12 MONTHS Kapil Kanala BUILDING LOCATION DEVELOPER UNITS LAUNCHED EXPECTED COMPLETION Associate Director, Research Services +91 40 40405555 /[email protected] M One Lokaa Developers 234 Q3 2020 Tiana Egattur Hiranandani Developers 264 Q2 2020 cushmanwakefield.com A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Data collated from primary and secondary resources. Estimations are subject to change Cushman & Wakefield (NYSE: CWK) is a leading global * Rental and capital values have been depicted only for key submarkets real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is ** Quoted capital value on carpet area based on agreement values which includes, Base Rate, Car Parking Charges, Internal Development Charges, etc. among the largest real estate services firms with The above values for high-end segment are for units typically of 2,000-4,000 sf approximately 51,000 employees in 400 offices and 70 The above values for mid segment are for units typically of 1,600-2,000 sf countries. In 2018, the firm had revenue of $8.2 billion 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 across core services of property, facilities and project management, leasing, capital markets, valuation and other KEY TO SUBMARKETS Mid Segment services. Central: Boat Club, Poes Garden, High-end Segment Off Central-I: R.A. Puram, Abhiramapuram, and ©2019 Cushman & Wakefield. All rights reserved. The information Central: Boat Club, Poes Garden, Nungambakkam Off Central -II: T.Nagar, , Annanagar, , , Adyar, , Besant contained within this report is gathered from multiple sources believed Off Central-I: R.A. Puram, Abhiramapuram, Nagar, K.K.Nagar, , to be reliable. The information may contain errors or omissions and is Alwarpet and Teynampet Suburban North - Madhavaram, ,Thondiarpet presented without any warranty or representations as to its accuracy. Off Central -II: T.Nagar, Mylapore, Annanagar, Suburban West: , Nolumbur, , High Road Kilpauk, Thiruvanmiyur, Adyar, Kotturpuram, Suburban South-I: (Thiruvanmiyur to ) Besant Nagar, K.K.Nagar, Velachery, Vadapalani Suburban South-II: GST Road ( to , )