BENGALURU RESIDENTIAL March 2019 MARKETBEATS

64% 1.5 times 40% SHARE OF MID SEGMENT INCREASE IN TOTAL SHARE OF NORTH BENGALURU (Q1 2019) UNITS LAUNCHED (YOY) IN UNIT LAUNCHES (Q1 2019)

RENTAL VALUES AS OF Q1 2019 QoQ YoY Average Quoted Short term Change Change HIGHLIGHTS SUBMARKET Rent (INR/Month) outlook (%) (%) Upswing continues, Mid segment tops new launches High-End Segment Central 150,000-350,000 6% 6% again South 60,000-120,000 0% 0% Following up on the rebound seen in 2018, buyers’ confidence continues to improve following the East 70,000-250,000 0% 0% successful implementation of -RERA. The upswing was visible in the first quarter of 2019 as North 60,000-180,000 14% 14% well on the back of strong end-user demand across the city. Around, 7,600 units across 22 projects Mid Segment were launched during the first quarter, 45% higher on an annual basis and a clear sign of revival in Central 70,000 – 100,000 0% 0% 25,000 – 45,000 market sentiments over the last 12 months. The mid segment accounted for 64% of new launches, South East 0% 0% North West 25,000 – 35,000 0% 0% followed by a 33% share of the affordable segment. North submarket comprising of , West 20,000 – 30,000 0% 0% Hosahalli near the Airport contributed nearly half of all launches in the mid segment followed by South- East 25,000 – 30,000 0% 0% eastern localities such as Sarjapur Road and Harlur during Q1 2019. CAPITAL VALUES AS OF Q1 2019 QoQ YoY Unit size reduction aiding affordability Average Quoted Short term Change Change SUBMARKET Rate (INR/sf) outlook With higher land prices and input costs, average home sizes have been shrinking over the last 12-18 (%) (%) months as developers look to the overall ticket size under control. Developers in the city have been High-End Segment strategic with such reductions to optimize overall costs while offering value through attractive financing Central 18,000 –30,000 0% 0% schemes and other incentives/offers to boost sales. Carpet area of an average unit launched in Q1 South 7,000 – 11,800 7% 7% East 7,500 – 11,000 12% 12% 2019 was recorded at 1067 sf, a 5% reduction on an annual basis. We expect unit sizes could further North 8,000 – 12,000 11% 11% correct marginally over the next 6-12 months, but a sharp decline is unlikely. Mid Segment North Bengaluru is a hotspot Central 9,500 – 13,000 0% 0% A Cushman & Wakefield East 4,500 – 6,500 10% 10% Research Publication Large scale commercial developments, upcoming metro corridor and affordable ticket sizes have been South East 4,500 – 6,500 0% 0% driving residential growth in recent times in the North Bengaluru residential corridor. Nearly 16,000 units North 5,000 – 7,000 14% 14% were launched in Northern Bengaluru during 2018, which was higher than three previous years (2015- DATA South 5,000 – 7,000 9% 9% INTO 17) combined. Unit launches in Q1 2019 are already at 3000+ units and more projects are underway for Off Central I 8,000-11,500 15% 15% ACTION the rest of 2019. Major players such as Godrej Properties, Purvankara, Bren Group, Sobha and Brigade Off Central II 7,500-9,500 13% 13% Group have all launched projects over the last 6 months. Capital values have already increased by North West 6,500 – 7,500 10% 10% Far South 3,750 - 4,500 0% 0% www.cushmanwakefield.com 10-15% over the last 12 months and we expect it to trend higher going forward due to higher demand. West 4,000 –5,000 0% 0% BENGALURU RESIDENTIAL MARKETBEATS MARCH 2019

Rohan Sharma Director SIGNIFICANT PROJECTS LAUNCHED IN Q1 2019 Research Services, Tel: +91 124 4695555 Email: BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE**(INR/SF) [email protected] Sobha Royal Pavilion Sarjapur Main Road Sobha Developers 1284 6,300 Mahaveer Montane Mahaveer Group 1200 3,500 Bren Northern Lights Bren Group 716 7900

SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q1 2019

BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS EXPECTED COMPLETION Shriram O2 homes Old Madras Road Shriram Properties 1645 Q4 2019 Provident Central Park Kanakpura Road Prestige Group 2000 Q4 2022

SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q1 2019

BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS UNIT SIZE (SF) SJR Palazza city Sarjapur Main Road SJR Developers 1000 500-1250 Sattva East Crest Old Madras road Salarpuria Sattva 667 900-1250

Data collated from primary and secondary resources. Estimations are subject to change * Rental and capital values have been depicted only for key submarkets ** Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc. DATA The above values for high-end segment are for units typically of 2,000-4,000 sf INTO The above values for mid segment are for units typically of 1,600-2,000 sf ACTION ^ 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

KEY TO SUBMARKETS High-end Segment Central: , Palace Cross Road, Off , Road, Richmond Road, Sankeys Road A Cushman & Wakefield South: , Bannerghatta Road, JP Nagar, Research Publication Off Central: Frazer town, Benson Town, Richards Town, Dollars Colony East: Whitefield, Old Airport Road North: Hebbal, Jakkur, Devanahalli Cushman & Wakefield (NYSE: CWK) is a leading global real estate North-west: Malleshwaram, , Yeshwantpur services firm that delivers exceptional value for real estate occupiers Mid Segment and owners. Cushman & Wakefield is among the largest real estate Central: Brunton Road, Artillery Road, Ali Askar Road, Cunningham Road services firms with approximately 51,000 employees in 400 offices East: , Whitefield, Old Airport Road, Old Madras Road, Budigere Cross and 70 countries. In 2018, the firm had revenue of $8.2 billion across South-east: Sarjapur Road, Outer Ring Road (Marathahalli- Sarjapur), HSR Layout, Road core services of property, facilities and project management, leasing, South: Jayanagar, J P Nagar, Kanakapura Road, Bannerghatta Road, BTM Layout, Banashankari capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. North: Hebbal, Bellary Road, , Doddaballapur Road, Hennur Road, Thanisandara Road Off Central-I: , , Off Central-II: Cox Town, Frazer Town, Benson Town, etc. North-west: Malleshwaram, Rajajinagar, Tumkur Road www.cushmanwakefield.com Far South: West: Mysore Road, Main Road, Magadi Road

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