Residential Sales Hold in Bangalore - Gurgaon slowing down - Mumbai Weak

Residential apartment sales data for the festive season (i.e. Oct/Nov month) is not available as yet, channel checks suggest that festive sales haven’t been encouraging (as compared to last two years).

Bangalore / Chennai continues to witness healthy absorption trends. Launch activity has come down in Nov after witnessing a meaningful pick in Oct (given festive month). In terms of markets, absorption trends remain sluggish in Mumbai; while volumes in Gurgaon are also coming off at the margin. Initial signs of price discounting have started to happen in Mumbai (subvention schemes, waivers etc).

In terms of pricing, Mumbai has seen price discounting primarily in the form of discounts or waivers, while quoted prices remain stable. EMI subvention schemes (80:20 schemes) have gained prominence in NCR/Mumbai. Number of reputed developers in Mumbai have announced these schemes over the past month for under construction projects. However quoted prices have not come down meaningfully as yet. Prices in Gurgaon remain largely stable; while Bangalore / Chennai are witnessing 5-10% appreciation despite high launch activity.

Mortgage rates seem to have peaked out (at 11.5% levels) with few HFCs/banks offering 25bps discount to floating home loan rates.

Land Prices to Rise in 52 Cities with FDI Investments in Retail

51% Foreign Direct Investment(FDI) in Retail is a positive for the Land Owners as well as Commercial Realty & Mall developers as well. In short, it is good for the Real Estate Industry as a whole. However, Government has restricted this investment only for the Following 52 Cities. Also note that if the Government in your State is non-Congress, they may oppose the FDI move as Retailers need permission from State Governments as well. So play your cards accordingly.

Mall Development - Retail mall development in India which has been anguishing for the past three years on low demand and oversupply. Mumbai and NCR (National Capital Region) have witnessed high vacancies in the mall space. We would expect the same to move down over the next three-four years helped by further investments into the retail space through the FDI route. Mall supply in Bangalore and Chennai was limited till date but is expected to increase over the next two years.

Residential Property Sales in Metros in Past 12 Months

The following Chart shows New Residential Apartment Sales Trend in Major Cities of India (4Q10 - 3Q11).
Source: Jones Lang LaSalle

Residential Property Sales Trend in Last 18 Months in Indian Cities

Supreme Court Bans GPA / Agreement for Sale - Land Prices to Fall ?

The much awaited Ban on GPA / SPA / Agreement for Sale used in Land Deals by Politicians and Goons to artificially jack up the price comes to an end by an order of the Supreme court which has termed these documents as il-legal effective dats of the order.

This will weed out parasite money making property agents who neither have business sense nor the will to work hard but make quick buck on some other property.

FreePress has an excellent Coverage on this issue who is unearthing scams and Black money across Indian Governments.

Kolkata - Residential prices + Rental Yields

The Following Chart Shows the Residential Property Prices / Apartment in various Parts of Kolkata and the Monthly Rental Yields on a 2 BHK Apartment / House.

	Rupees / SFT		Monthly Rent
BT to Road	2,200		6,000
DumDum	2,200		4,500
JessoreRoad	2,800		6,000
Lake to wn	3,500		10,000
PaikPara	3,500		5,000
Sinthimore	2,300		5,500
VIPRoad	4,000		8,000
Alipore	10,000	to 14000	22,000
Ballygung	9,000	to 13000	25,000
Bansdroni	2,200	to 2800	8,500
Behala	1,800	to 2200	5,000
Garia	1,800	to 2200	6,000
Jadavpur	2,800	to 3800	12,000
JodhpurPark	3,500	to 4500	20,000
Joka	1,700	to 2200	5,000
Narendrapur	2,000	to 3200	5,000
San to shpur	2,700	to 3200	8,000
to llygung	3,000	to 4200	8,000
EM to Bypass	3,000	to 7000	10,000
Rajarhat	2,600	to 5000	15,000
SaltLake	3,500	to 4200	14,000
DobsonRoad(Howrah)	3,500	to 4500	8,000
KonaExpressway	2,200	to 3300	8,000
Mahesthala	2,500	to 2800	6,500
Salkia	2,500	to 3500	6,000
Shibpur	1,800	to 2200	5,500
CamacStreet	10,000	to 14000	30,000
LoudonStreet	18,000	to 22000	32,000
Park Street	15,000	to 20000	30,000
TheatreRoad	16,000	to 18000	30,000

Hyderabad - Residential Property Prices + Rental Yields

The following Table Shows the property Prices in Various Parts of Hyderabad and Monthly Rental Yields for a 2 BHK Residential Apartment / House.

	Price / SFT	Monthly Rent
Alwal	2,000	6,000
Kapra	2,000	5,000
Kompally	2,300	5,500
Medchal	1,500	4,500
Secunderabad	5,000	12,000
Shamirpet	1,600	3,000
Attapur	2,500	5,500
Himayath-Sagar	2,500	4,000
Mehdipatnam	3,200	8,500
Rajendra-Nagar	2,600	5,000
East
Amberpet	2,800	8,000
Malkajgiri	2,400	6,000
Tarnaka	3,000	9,000
Tirumalghery	2,600	9,000
Uppal	2,500	5,000
Bachupally	2,100	4,500
Gachibowli	3,700	18,000
Kondapur	3,200	18,000
Kukatpally	2,800	8,000
Madhapur	3,700	18,000
Miyapur	2,500	7,000
Nallagandla-Tellapur	2,700	10,000
BanjaraHills	7,000	22,000
Begumpet	4,800	18,000
JubileeHills	7,200	20,000
Lakdi-Ka-pool	4,200	16,000
Narayangunda	3,700	12,000
Punjagutta	5,500	17,000
Somajiguda	5,500	16,000

Chennai - Residential Property Prices + Rents

The Following Chart Shows Property Prices in Various Pockets of Chennai,



Residential Property Prices and MOnthly Rental Yields in the Following Areas of Chennai City
Kilpauk Adambakkam Korathur Chromepet Madhavaram Madipakkam
Perambur Medavakkam Tondiarpet Nanmangalam Villivakkam Padur Kelambakkam Karapakkam Sholinganallur Semmencherry
Ambattur Selaiyur Aminjikarai Tambaram Annanagar Urapakkam
Avadi Velachery K K Nagar Manapakkam Adyar Mogappair Alwarpet Nolambur Egmore Porur Kodambakkam Saligramam Mahalingapuram Sriperumbudur Mandaveli Vadapalani Nungambakkam Parrys T Nagar

Bangalore - Property Prices + Rental Yields

The following chart shows the property prices in Various Pockets of Bangalore and the Monthly Rental Yields for the same.