M A R K E T B E AT Residential Q1 2020

Significant q-o-q drop in unit launches; further decline anticipated The first quarter of 2020 was characterised by subdued launch activity in the residential sector, with unit launches recording a significant 43% q-o- q decline, New launches in Q1 stood at 2,002 units with 1,387 units (69% of total unit launches) being launched in the mid segment followed by the affordable segment which accounted for 25% of the quarterly unit launches. Medium sized, locally active developers who launched their projects NEW UNIT LAUNCHES (Q1 2020) >2,000 during the initial months of the quarter were Magnolia Realty, Deeshari Group, Shivom Realty and Snigdhaneer Constructions among others. Launch activity and announcement of new projects is likely to be sluggish in the coming quarters with majority of the developers already holding sizeable unsold inventory on the back of diminished sales activity in the city’s residential sector. SHARE OF SOUTH PERIPHERAL IN 44% TOTAL UNIT LAUNCHES (Q1 2020) The COVID-19 outbreak and its lingering effects also likely to adversely impact sales momentum for the short term. Deferment in construction timelines, which has been a common occurrence in Kolkata’s residential sector particularly in projects by smaller developers due to lack of funds SHARE OF MID SEGMENT is also expected to be a major concern in the post lockdown period with construction coming to a standstill and resource mobilisation likely to be 69% IN TOTAL UNIT LAUNCHES (Q1 2020) slower for resumption of ongoing project sites.

Peripheral locations lead quarterly project additions With buyers continuing to show preference for mid category typologies, developers who announced projects this quarter were focused on medium range ticket sized residential units mostly in the peripheral corridors of the city. The Peripheral South corridor comprising of locations like , MARKET INDICATORS OVERALL Q1 2020 , Sonarpur enjoys proximity to the existing metro network and has been a hotspot for such residential offerings which target the mid- income target group. This corridor accounted for 44% of the quarterly launches in Q1. A sustained focus on such mid-range residential products in Y-O-Y 12-Months the city was anticipated to sustain both supply and demand momentum in the medium term, however, is likely to experience a blip with the COVID- Change Forecast 19 impact. Small scale developers who mainly focus on low to mid range project launches in the suburban and peripheral locations are likely to face financial and liquidity pressure for finishing ongoing projects in the wake of sales momentum being impacted by bearish buyer sentiments. New Launches Capital and rental values remain stable with limited scope for short term appreciation The continued sluggishness in residential sales activity and the inventory pile-up have kept capital values range-bound across all submarkets and Units Sold project categories. Rental values also remained unchanged across all submarkets and are likely to remain stable over the next few quarters with tenants negotiating hard with the landlords in the current crisis. Property capital values along select corridors were expected to witness some appreciation in the short to medium term with enhanced metro connectivity, however such possibilities of price movement now seem difficult with Average Capital the COVID-19 impact on sales and liquidity standing of developers will exert pressure on prices. Property prices though may not witness a decline, Values (INR/sf) however over the next few quarters many developers are likely to continue offering discounts and schemes to attract homebuyers. Homebuyers would be prudent in looking at their own liquidity before making home purchase decisions in an uncertain economic environment.

SIGNIFICANT PROJECTS LAUNCHED IN Q1 2020

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

Magnolia Merlion Magnolia Realty 380 3,500

Unimark Lakewood Estate Phase - 2 Garia Unimark Group 224 6,000

The Skylake Muskan Highrise 115 8,990 M A R K E T B E AT MARKET NAME Residential Q1 2020

RENTAL VALUES AS OF Q1 2020* CAPITAL VALUES AS OF Q1 2020* AVERAGE QUOTED AVERAGE QUOTED QoQ CHANGE YoY SHORT TERM QoQ CHANGE YoY SHORT TERM SUBMARKET SUBMARKET CAPITAL VALUE RENT (INR/MONTH) (%) (%) OUTLOOK (%) (%) OUTLOOK (INR/MONTH) High-end segment High-end segment South 63,000-85,000 0% 0% South 7,500-13,000 0% 0% South-East 40,000-85,000 0% 0% South-East 6,300-14,000 0.5% 0.5% South-West 100,000-185,000 0% 0% South-West 12,000-17,000 0% 0% Central 85,000-155,000 0% 0% Central 12,000-19,500 0% 0% East 38,000-68,000 0% 0% East 5,000-7,750 0% 0% Mid segment Mid segment South 20,000-35,000 0% 0% South 4,000-8,500 0% 0% South-Central 28,000-36,000 0% 0% South-Central 5,900-9,250 0% 0% South-East 20,000-35,000 0% 0% South-East 3,100-5,550 0% 1.0% North-East 15,000-25,000 0% 0% North-East 2,900-4,300 0% 0% North 16,500-31,000 0% 0% North 3,150-6,200 0% 0%

SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q1 2020 BUILDING LOCATION DEVELOPER UNITS LAUNCHED UNIT SIZE (SF) Rohan Sharma Forum Atmosphere EM Bypass Forum Projects 80 5,700-8,500 Director, Research Services Meghmani Mani Group 108 1,722 - 2,086 +91 124 4695555 /[email protected] Kapil Kanala SIGNIFICANT PROJECTS UNDER CONSTRUCTION – TO BE COMPLETED IN NEXT 12 MONTHS Associate Director, Research Services BUILDING LOCATION DEVELOPER UNITS LAUNCHED EXPECTED COMPLETION +91 40 40405555 /[email protected] Merlin Maximus Merlin Group 474 Q4 2020 cushmanwakefield.com Mani Imperial Mani Group 225 Q4 2020 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global Data collated from primary and secondary resources. Estimations are subject to change real estate services firm that delivers exceptional value for * Rental and capital values have been depicted only for key submarkets real estate occupiers and owners. Cushman & Wakefield is ** Quoted base capital value does not include other charges such as Preferential Location Charges, External Development 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 across core services of property, facilities and project KEY TO SUBMARKETS Mid Segment management, leasing, capital markets, valuation and other High-end Segment South: , Tollygunge, , , Anwar Shah Road services. South: Southern Avenue, Hindustan Park, Triangular Park South-central: Deshapriya Park, Hazra Road, Bhawanipur South-central: , Queens Park, Rainy Park,Dover Lane South-east: Ajoy Nagar, Hiland Park, PA Shah Connector ©2020 Cushman & Wakefield. All rights reserved. The information South-east: EM Bypass - Science City, Pancha Sayar North-east: Rajarhat, Rajarhat Chowmatha contained within this report is gathered from multiple sources believed South-west: Park Road, Ashoka Road, Burdwan Road South-west: Tollygunge Circular Road, , , Jones Lang Sarani to be reliable. The information may contain errors or omissions and is Central: Camac Street, Minto Park, Elgin Road, Loudon Street North: Jessore Road, Ultadanga, , , Manicktala, presented without any warranty or representations as to its accuracy. North: , Lake Town, VIP Road East: Salt Lake North-peripheral: BT Road, , , Sodepur North-east: New Town, Rajarhat South-peripheral: Garia, Narendrapur, Sonarpur South-west peripheral: Joka, , ,