Documente Academic
Documente Profesional
Documente Cultură
Pawan Agarwal
Chairman, CIRIL
CIRIL welcomes Golden Star as its
member for Facilities and Property
management across India.
India's gross domestic product (GDP) grew by 6.3 per cent in July-
September 2017 quarter as per the Central Statistics Organisation (CSO).
Corporate earnings in India are expected to grow by over 20 percent in FY
2017-18. India has emerged as the fastest growing major economy in the
world as per the Central Statistics Organisation (CSO) and International
Monetary Fund (IMF) and it is expected to be one of the top three economic
powers of the world over the next 10-15 years.
0
2005 - 06
2006 - 07
2007 - 08
2008 - 09
2009 - 10
2010 - 11
2011 - 12
2012 - 13
2013 - 14
2014 - 15
2015 - 16
2016 - 17
Q1 17
Q2 17
Q3 17
source: Mospi
Economic Restructuring and
Competitive Landscape
Reforms Undertaken
Year 2017 was a watershed year for Indian Real In 2018, completion of existing projects will be
Estate in terms of Policy Reforms and its prioritised over launching new ones, hence,
substantial impact on the sector. While business 2018 looks promising for a good supply across
cycles have been affected this year due to wait major Indian markets.
and watch by investors in anticipation of
regulatory changes, but signs of recovery are The Government's efforts to boost "affordable
visible after the triple effects of demonetisation, housing" by conferring "infrastructure status" to
RERA and GST have begun to shape up the this segment and announcing various tax
sector with new standards of delivery, incentives will continue to attract more
accountability and transparency. prominent developers. 2018 is unlikely to see
any price rise in 2018, however sales are likely
Post implementation of these reforms, the to pick up in 2018.
following impacts have been observed in the
market so far: The real estate sector is projected to receive
Private Equity (PE) investments to the tune of
• More demand for commercial and affordable US$4 billion during this fiscal year. REITs are
housing sector set to provide investment opportunities to
• Consolidation of land market smaller investors next year. India's real estate
• Preference for ready to move-in properties markets are poised for growth in the medium-
to-long term on the back of higher transparency
and further consolidation.
Market Drivers
• In September 2017, 15 Japanese companies including Moresco, Toyoda Gosei, Topre and Murakami, signed
memorandums of understanding (MoUs) with an intention to invest in the state of Gujarat.
• Singapore's Temasek will acquire a 16 per cent stake worth Rs 1,000 crore (US$ 156.16 million) in Bengaluru based
private healthcare network Manipal Hospitals which runs a hospital chain of around 5,000 beds.
• France-based energy firm, Engie SA and Dubai-based private equity (PE) firm Abraaj Group have entered into a
partnership for setting up a wind power platform in India.
• US-based footwear company, Skechers, is planning to add 400-500 more exclusive outlets in India over the next five
years and also to launch its apparel and accessories collection in India.
• The government has approved five Foreign Direct Investment (FDI) proposals from Oppo Mobiles India, Louis
Vuitton Malletier, Chumbak Design, Daniel Wellington AB and Actoserba Active Wholesale Pvt Ltd, according to
Department of Industrial Policy and Promotion (DIPP).
• Walmart India Pvt Ltd, the Indian arm of the largest global retailer, is planning to set up 30 new stores in India over
the coming three years.
• US-based ecommerce giant, Amazon, has invested about US$ 1 billion in its Indian arm so far in 2017, taking its
total investment in its business in India to US$ 2.7 billion.
• International Finance Corporation (IFC), the investment arm of the World Bank Group, is planning to invest about
US$ 6 billion through 2022 in several sustainable and renewable energy programmes in India.
• Warburg Pincus, a Private Equity firm based in New York, has invested US$ 100 million in CleanMax Solar, a rooftop
solar development firm, which will be utilised to fund growth opportunities outside India and to improve product
offerings.
• Morganfield Group, a Malaysian restaurant and bar chain, is planning to enter India by launching three of its
brands, Morganfield’s, Mocktail Bar and Snackz It, by the end of 2017. The company expects to open 250 outlets in
India over the next five years.
• SAIC Motor Corporation is planning to enter India’s automobile market and begin operations in 2019 by setting up a
fully-owned car manufacturing facility in India.
• Toronto-based Canada Pension Plan Investment Board (CPPIB) made investments worth Rs 9,120 crore (US$ 1.41
billion) in India during FY 2016-17, taking their total investment in India to Rs 22,560 crore (US$ 3.50 billion).
• SoftBank is planning to invest its new US$ 100 billion technology fund in market leaders in each market segment in
India as it is seeks to begin its third round of investments.
Buoyed by strong support from the government, In move to encourage more investment, the
FII investments have been strong and are Securities and Exchange Board of India (SEBI)
expected to continue to improve going forward. has relaxed norms for registered FPIs in India,
allowing them to operate through the International
India received net investments of US$ 17.412 Financial Services Centre (IFSC) without any
million from FIIs between April-October 2017. additional documentation or prior approval
FII’s net investments in Indian equities and debt process.
have touched record highs in the past financial
year, backed by expectations of an economic The RBI has also allowed a number of foreign
recovery, falling interest rates and improving investors to invest, on repatriation basis, in non-
earnings outlook. FIIs net investments in Indian convertible/redeemable preference shares or
equities and debt stood at US$ 7.46 billion in debentures issued by Indian companies listed on
2016-17 (upto April 14, 2017). Cumulative value established stock exchanges in India. The
of investments by FIIs during April 2000- investment should be within the overall limit of
December 2016 stood at US$ 183.69 billion. US$ 51 billion allocated for corporate debt. Long-
term investors registered with SEBI will also be
deemed as eligible investors.
• Omkar Realtors and Developers Pvt Ltd raised Rs 125 crore (US$ 19.52 million) in debt from KKR India
Asset Finance Pvt Ltd, which will be used towards construction of two residential projects in Mumbai.
• Blackstone Group LP, the largest alternative asset manager in the world, is set to enter India's distressed
asset space by investing US$ 150 million in International Asset Reconstruction Co Pvt Ltd (IARC) to
acquire a large minority stake, which will gradually be increased to a majority stake over a couple of
years.
• South Korea's Mirae Asset group is planning to expand its Indian operations and enter the real estate
sector in the country and will invest US$ 500 million in commercial leased properties.
• Softbank Vision Fund is planning to invest US$ 2 billion in Indian e-commerce major, Flipkart, half of
which will go to Tiger Global Management, which is looking to sell part of its Flipkart stake, while the
remaining funds would be invested in Flipkart's operations to help its battle against Amazon.
• Indian budget hotels chain, FabHotels, has raised US$ 25 million from Goldman Sachs and existing
investor Accel Partners in a Series B funding round, which will be focused on tripling the technology team
and doubling the number of rooms from the current 5,000.
• Microsoft Corp might invest US$ 50-100 million in ANI Technologies Pvt Ltd, the parent company of Ola
Cabs, in a bid to increase the market share of its Azure cloud platform in India.
• UrbanClap, an Indian home services start-up, has raised US$ 21 million in a series C funding round led by
Vy Capital, an internet investment fund. The company will use the funds for expansion to more cities,
investment in technology and addition of vendors.
• DMI Finance Pvt Ltd, a Delhi-based non-banking financial company (NBFC), is planning to raise a fund of
up to Rs 1,000 crore (US$ 155.11 million), which will be focused on special opportunities situations in the
real estate sector and distressed assets space.
• International Finance Corporation (IFC) will invest US$ 200 million in Housing Development Finance
Corporation Ltd (HDFC) via five-year non-convertible debentures (NCDs) or masala bonds which will be
used by HDFC to provide loans for affordable housing projects across India.
• DMI Finance Pvt Ltd, a Delhi-based non-banking financial company (NBFC), is planning to raise a fund of
up to Rs 1,000 crore (US$ 155.11 million), which will be focused on special opportunities situations in the
real estate sector and distressed assets space.
Retail Sector
Demand and Supply in Mumbai Rental Trends Deals in Mumbai Commercial Market in INR/sq.ft/month
Commercial market in million sft
Area 2015 2016 H1 2017 H2 2017
8
Worli/Prabhadev 110 - 200 100 -190 100 -180 100 -180
7
Lower Parel 80 - 170 90 - 180 90 - 180 90 - 180
6
BKC 170 - 300 165 -285 155 -275 155 -275
5
Kalina 110 - 180 100 -175 100 -175 100 -175
4
Goregaon / JVLR 85 - 110 90-110 90-110 90-110
3
Andheri East 70 - 120 70-140 70-140 70-140
2
Malad 70 - 90 75-100 75-100 75-100
1
Powai 110 - 180 120-200 125-225 125-225
0
Navi Mumbai 40 -70 40-80 40-80 40-80
2012 2013 2014 2015 2016 2017
Thane / LBS 60 -110 60-120 65-125 65-125
Supply Demand
National Highway 8
Saket
Jasola
During year 2017, mall rentals remained stable Retail markets of NCR Delhi are expected to
across submarkets. Apparel and lifestyle retailers witness sustained demand for quality retail
like Pantaloons, Skechers, Blackberrys, space in 2018. Demand for quality space by
Decathalon and Geetanjali Salon were the key international brands will drive the retail
occupiers of mall spaces. Main street locations of market. South Delhi, Gurugram and NOIDA is
South Delhi and Gurugram sector 29 continued to expected to continue as most preferred retail
witness high demand. destinations
Industrial and warehousing Land rates in INR Industrial Rents Warehousing Rents
Submarkets Mn/acre INR/sft/month INR/sft/month
DELHI
Mundka 30 -60 20 -30 15 - 30
Alipur 25-50 18-25 13 - 20
Near Airport/ Dwarka 50 -100 20 - 30
Okhla / Mohan Cooperative 30 -100 30 - 50
Central Delhi 40 -120
NCR-UP
Noida 390-395 35-40 16-30
Greater Noida 38-40 15-22 16-22
NCR-Haryana
Faridabad 18-25 18-20
Gurgaon(Pataudi - Bilaspur) 18-22 10-18
Hasangarh 10-13
Sonepat 11-20
Palwal 15-20 13 -15
Ballabhgarh 16-18 20-22
NCR-Rajasthan
Bhiwadi 35-40 15-17 15-17
Khushkhera 22-25 14-15 14-15
Neemrana 39-42 14-16 14-16
16 250
14 200
12 150
10 100
8
50
6
0
4
2
0
2012 2013 2014 2015 2016 2017
Supply Demand
2014 2015 2016 2017
Retailers from multiple categories such as Rental prices will largely remain unchanged
apparel, food and beverage (F&B), beauty, in 2018. E-commerce and international
travel, etc. are driving the demand in departmental stores will continue to be the
submarkets. The majority of leasing activity in major demand drivers in the Bengaluru
the malls was driven by e-commerce, food & commercial office space.
beverage and apparel retailers,
Bengaluru has emerged as major market for Nelamangala – Dabaspete cluster and T Begur
investment by e-commerce players. The total to Dabaspete region is emerging as new
warehousing space requirement in the city is Industrial and warehousing corridor. Rents
estimated to be around 80 mn sq.ft. in next two across micro-markets remained largely stable.
years while upcoming supply is around 60 mn Going forward, sustained occupier demand is
sq.ft. likely to keep rents across the prominent
industrial and warehousing clusters under
Manufacturing sector is the biggest demand pressure in the coming 6-12 months.
drivers with absorption of 55 mn sq.ft. In
warehousing segment e- retailers and e- Bengaluru Industrial and warehousing
commerce giants have consolidated their market will continue its robust performance
presence in this market due to availability of in year 2018. Rentals may appreciate owing
quality warehouse at reasonable costs and to healthy demand in certain micro-markets
relative proximity to high-demand centres (such particularly in eastern and western part of
as Hyderabad, Chennai, Cochin and Mangalore. Bengaluru
Warehousing Rents
Industrial and warehousing Submarkets Industrial Rents INR/sft/month
INR/sft/month
Sriperumbudur - Tiruvallur 22 – 29 22 - 29
NH 5 - Gummidipoondi SIPCOT 15 - 18 18 - 20
Ambattur 24 -26 23 - 25
Poonamallee 25 - 30
Maraimalai 23 - 25 20 - 23
HYDERABAD
REAL ESTATE TRENDS
Hyderabad, the capital of newly formed state of Telengana is historically
known as the “City of pearls” . With an output of US$74 billion, Hyderabad is
the 5th contributor to India's overall gross domestic product. The city is home
to more than 1300 IT and ITES firms, including global conglomerates such
as Microsoft (operating its largest R&D campus outside the US), Google,
IBM, Yahoo!, Dell, Facebook, and major Indian firms including Tech
Mahindra, Infosys, Tata Consultancy Services (TCS), Polaris and Wipro. The
city and its suburbs contain the highest number of special economic zones of
any Indian city.
Demand and Supply Trend in Hyderabad Hyderabad Commercial Market Rental Trends in
Commercial Market in MN sft INR/sft/month
8 70
60
7 50
40
6 30
5 20
10
4 0
Off - CBD
Suburban (Kukatpally,
Peripheral (Uppal)
CBD
Suburban (Madhapur,
3
2 Kondapur,Raidurg)
Shamshabad)
Shaikpet)
1
0
2012 2013 2014 2015 2016 2017
The major industrial and warehousing corridors Shamshabad has emerged as a preferred e-
in Hyderabad are Shamshabad, Mahabubnagar commerce destination due to proximity to airport.
and Medchal. These areas have the presence of Rentals have remained stable across micro
almost all major FMCG and e-retail players. markets. The Medchal area saw appreciation of
rentals due to steady demand and sustained
The Hyderabad logistics market witnessed leasing activities. Industrial and warehousing
strong increase in leasing activity in 2017. demand will continue to grow in along major
Besides a few large scale transactions, the industrial and warehousing corridors of
leasing activity during 2017 was driven by small Hyderabad in 2018 particularly in Medchal,
to medium sized space take-up by 3PL, FMCG, Shamshabad and Kothur areas
e-Commerce and pharmaceutical companies.
Majority of the leasing activity was concentrated GST reforms and political stability has
across independent warehouses. triggered off growth in Hyderabad Industrial
and warehousing markets.
Jeedimetla 15 - 18 15 - 18
Gunda-Pochampally 12 - 14 12 – 14
Kandlakoya 10 - 13 10 - 15
Kompally 15 – 20 15 - 20
Bowrampet 12 - 15 12 - 15
Gajularamaram 10 - 12 10 - 12
Medchal 18 - 22 18 - 25
Turkapally 11- 14 11 - 14
Dandupally 12 - 14 12 - 14
KOLKATA
REAL ESTATE TRENDS
Kolkata is the main commercial and financial hub of East and North-East
India and home to the Calcutta Stock Exchange. Kolkata is home to many
industrial units operated by large public and private-sector corporations;
major sectors include steel, heavy engineering, mining, minerals, cement,
pharmaceuticals, food processing, agriculture, electronics, textiles, and jute.
Information technology became a high-growth sector in Kolkata starting in the
late 1990s; the city's IT sector grew at 70% per annum—a rate that was twice
the national average.
Salt Lake
New Town,
CBD (Park
street,…
Sector V,
Bypass,
Rajarhat -
2012 2013 2014 2015 2016 2017
Topsia,
Ruby)
Camac
Street,
PBD
Supply Demand
Kolkata Retail markets saw revival with addition Rental rates in the H2, 2017 were stable and
of new supply in 2017. Kolkata that witnessed 55 similar to H1, 2017. It ranges from Rs. 40/sqft –
per cent rise in transaction activity with leasing of Rs. 350 /sqft for the High Street properties in
around 0.75 mn sq ft of retail space. Kolkata and around the city. Several non performing old
witnessed numerous store openings during 2017 Single Screen Cinema Halls are in the process
particularly driven by high street transactions of Conversion into Retail Projects with the whole
due to non availability of mall space. Anchors land parcel. Behala, BT Road and Tollygunge-
Like Future Group, Spencer’s, ABRL and Garia area are demarcated as most potential
Reliance have floated their massive expansion locations for Malls In the city. Some of the
plan under different formats for the city and leading developers are coming up with Medium
surroundings for 2018. Size Shopping Malls in these locations.
Most transactions on high streets were by Healthy Retail space transaction is expected
retailers belonging to the apparel, jewellery and to continue in year 2018. Demand for high
QSR segments. Kolkata is expected to add 3 street properties will drive the retail markets
mid size shopping malls to the existing supply by in Kolkata.
end of 2018.
Kolkata’s strategic location as a gateway to North- Srijan Industrial Logistic Park saw healthy
east India and its proximity to the Kolkata port has transaction activity in 2017. around 1 mn sq. ft
made the city a major warehousing location in of warehousing space was added to Kolkata
India. Kolkata warehousing segment saw micro markets in 2017. Few notable
absorption of around 2 mn sq.ft in 2017. transactions during 2017 included Whirlpool
(170,000 sq. ft.), Voltas (90,000 sq. ft.) and
Kolkata industrial and warehousing market Reliance (80,000 sq. ft.). Bombay Road
witnessed an appreciation of 5% -10% in most emerged as the most vibrant micro market for
micro markets due to increased demand from warehousing and logistics sector.
warehousing developers/ landlords.The micro
market of Dankuni, Dhulagarh, Sankrail and Industrial and warehousing demand will
Uluberia along NH-6 witnessed close to 70% of continue to grow in along major industrial
overall transaction activity. Domestic companies and warehousing corridors of Kolkata in
from the electronics, 3PL, e-Commerce and media 2018
sectors were the major occupiers of space.
Warehousing Rents
Submarkets Land rates in INR per acre
INR/sft/month
Dankuni – Delhi Road 3 Cr – 6 Cr 16 – 21
Dhulagarh – Bombay Road 1.8 Cr – 6 Cr 15 – 20
Taratala – Maheshtala 6 Cr – 9 Cr 17 – 22
Madhyamgram, Barasat 1.8 Cr – 3 Cr 18 – 25
Standard Chartered Bank Netaji Subhas Chandra Rd Full Building 65 Cr. Approx
India Bulls Investor Advisory Strand Road 4110 sft 6.25Cr with 8% ROI
Reliance Trends Belur- Howrah 10335 sft 6.15 Cr. Approx with 9% ROI
Bhubaneswar,Esplanade
Black Stone 415000 sft Outright
Forum Mall
Bhubaneswar,Esplanade
Hooda –Ramada Group of Hotels 37500 sft Outright
Forum Mall
PUNE
REAL ESTATE TRENDS
Pune is considered the cultural capital of Maharashtra. Pune is one of the
fastest growing cities in the Asia-Pacific region. The ‘Mercer 2016 Quality of
Living rankings’ evaluated local living conditions in more than 440 cities
around the world where Pune ranked at 144, second in India after
Hyderabad(139). It also highlights Pune among evolving business centres
and emerging 9 cities around the world with citation "Hosts IT and
automotive companies“.
6 120
100
5 80
4 60
40
3 20
2 0
1
0
2012 2013 2014 2015 2016 2017
Supply Demand
2014 2015 2016 2017
Ahmedabad real estate saw limited transaction Rentals remained stable in most micro markets
of around 0.6 mn sq. ft of commercial space in with price correction in few locations due to
year 2017. Grade A leasing activity was oversupply scenario especially in the
dominated by the banking, financial services and submarkets of S.G. Highway and Satellite/
insurance (BFSI) sector with a 50% share. Prahladnagar. Nearly 1.2 million square feet
Majority of the leasing activity was concentrated (msf) of Grade A offices are expected to become
in the SBD of S.G. Highway (55%). operational in the 2018