Embed Size (px)
Citation preview
Bengaluru July – Dec 2014
Residential July – Dec 2014
Residential Launches, Absorption and Price Trends
RESIDENTIAL
10% fall in H2 2014 vs. H2 2013 H2 2013 – 36,145 units H2 2014 – 32,589 units
11% rise in H2 2014 vs. H2 2013 H2 2013 – 25,522 units H2 2014 – 28,445 units
7% rise in price Y-O-Y in 2014
New launches in H2 2014 plummet Y-O-Y– a decline of 10%
RESIDENTIAL
Residential Market in Bengaluru in Year 2014
Sales volume
fell by
3%
55,701 units sold vs. 57,366 units in 2013
New launches dropped
by 13%
68,134 units launched vs. 78,300 units in 2013
South Bengaluru sees a severe decline in launches, North Bengaluru holds strong
RESIDENTIAL
241
units
26 u
nits
55
units
9,46
9 u
nits
8,22
1 un
its
8,97
3 un
its
4,91
7 un
its
7,02
4 un
its
11,0
08 u
nits
18,5
55 u
nits
16,1
07 u
nits
8,26
0 un
its
2,96
2 un
its
4,16
2 un
its
4,29
3 un
its
Micro-market-wise residential launches – Share in %
Not much of a difference in the share of absorption during 2013 and 2014
RESIDENTIAL
97 u
nits
63
uni
ts
48
units
6,88
7 un
its
6,96
1 un
its
6,68
1 un
its
4,93
2 un
its
5,24
7 un
its
7,43
9 un
its
11,7
47 u
nits
13
,050
uni
ts
12,0
03 u
nits
1,85
8 un
its
1,93
6 un
its
2,27
5 un
its
Micro-market-wise residential absorption – Share in %s
Nearly 24 months to exhaust the existing unsold inventory
RESIDENTIAL
North and South continue to suffer – South has the largest unsold inventory while North has the oldest
RESIDENTIAL
Total Unsold Units 100,968
as on December 2014
Hebbal witnesses the highest price rise backed by infrastructure initiatives
RESIDENTIAL
Location Micromarket Price range in H1 2014 (`/sq ft)
12-month change
6-month change
Langford Town Central 15,000–20,000 10% 6% Lavelle Road Central 22,000–30,000 10% 4% K.R. Puram East 4,000–6,500 8% 5% Whitefield East 4,500–8,000 11% 4% Marathahalli East 4,500–6,800 7% 5% Indiranagar East 9,000–12,000 5% 0% Yeshwanthpur West 6,500–9,500 6% 0% Malleswaram West 9,000–12,000 6% 0% Rajajinagar West 8,500–13,500 6% 0% Tumkur Road West 4,000–4,700 10% 3% Yelahanka North 4,500–7,000 8% 0% Hebbal North 5,000–9,500 12% 4% Hennur North 4,200–6,000 8% 5% Thanisandra North 4,000–7,000 8% 0% Sarjapur Road South 4,200–7,000 7% 0% Electronics City South 4,000–6,300 11% 3% Kanakapura Road South 4,300–6,000 10% 6% Bannerghatta Road South 4,200–7,000 9% 0%
Concluding Remarks
Residential market on sticky wicket as sales head South – 3% decline Y-O-Y in 2014
Launches down by 13% but North Bengaluru is an outlier Prices have risen by 7% in H2 2014 Y-O-Y, although overall
momentum in price rise seems to have lost its steam in the last six months, as the IT industry failed to offer sufficient pay hikes.
RESIDENTIAL
Going forward
Launches to decline by 4% in the Jan – Jun 2015 period but sales will see a growth of 11%
Price during Jan – Jun 2015 will increase by 3% Y-O-Y indicating
signs of recovery Demand for residential units is likely to be concentrated in and
around North and South East corridor in the coming months
RESIDENTIAL
Office July – Dec 2014
At 102.3 mn. sq. ft., Bengaluru records the highest occupied stock in the country
OFFICE
Vacancy level to drop to a single digit of 9.6% during Jan – Jun 2015
OFFICE
E-Commerce drives space consolidation; IT / ITeS takes a beating in share
OFFICE
ORR continues to lead in total office space absorption
OFFICE
10%
19%
39% 33%
0% 3%
9%
59%
24%
4%
0%
10%
20%
30%
40%
50%
60%
70%
CBD & Off CBD SBD ORR PBD East PBD South
H2 2013 H2 2014
Business District-wise Absorption Split
479,
283
sq.ft
.
145,
968
sq.ft
.
923,
835
sq.ft
.
407,
950
sq.ft
.
1,88
8,61
2 sq
.ft.
2,63
3,93
7 s
q.ft.
1,59
6,06
7 sq
.ft.
1,0
77,5
20 s
q.ft.
4,88
8 sq
.ft.
169,
388
sq.ft
.
E-Commerce and IT / ITeS to drive rise in rentals in the next 6 months
OFFICE
Concluding Remarks
• Bengaluru market gains steams; Records highest occupied stock in the country
• Absorption in 2014 recorded a 9% growth over 2013; New completion also grew by 4% Y-O-Y
• The weighted average rental values witnessed a nominal increase of 3%, from INR 47/sq ft/month in H2 2013 to INR 48.5/sq ft/month in H2 2014
Going Forward
E-Commerce to drive office market; more jobs in the anvil
IT rebound to aid office growth in Bengaluru; big ticket deals expected
Vacancy level to touch a single digit 9.6% during Jan – Jun 2015
Contact [email protected] [email protected]
