Monthly real estate monitor May 2012 - Delhi By JLL India

A monthly (May 2012)  snapshot of what is happening in the real estate market of India's seven major cities By Jones Lang LaSalle (JLL) India

The cities are..!
1. Bangalore
2. Chennai
3. Hyderabad
4. Delhi
5. Kolkata
6. Mumbai
7 .Pune

Delhi

Office Space Market..!
Demand picked pace in Delhi NCR in May, 2012 particularly in Gurgaon & Noida. There was a  slight increase in the number of enquiries for office space; pre-commitments in SEZs remained healthy and the vacancy rate decreased marginally with an increase in demand and limited supply. Key transactions included Flipkart leasing space in DLF Cybercity at Gurgaon, Corbus leasing space in  Noida City & Naukri.com leasing an entire project on the Noida-Greater Noida Expressway.

Office	Rents	Capital Value
Key Precincts	INR per sq ft per month	INR per sq ft
Barakhamba Road	140-380	24,000-32,000
Jasola	110-170	16,000-21,000
DLF Cybercity	65-70	NA
MG Road	110-125	14,000-17,000
Golf Course Road	85-95	11,000-13,000
Sohna Road	45-55	6,500-8,000

The “DLF Multi-Level Car Park”, a commercial block in the CBD, commenced operations with nearly  55 to 60% occupancy. Rents & capital values remained stable. Select properties in select precincts of Gurgaon quoted rents above the market average in May, 2012.
 Retail Space  Market..!
Leasing remained sluggish as quality space in malls remained a constraint. Vacancy rates in prominent
malls were in single digits in May, 2012. One of the key  retail transactions was done by Cinepolis pre- committing space on the Noida - Greater Noida Expressway.

Retail	Rents	Capital Value
Key Precincts	INR per sq ft per month	INR per sq ft
South Delhi	180-240	21,000-30,000
West and North Delhi	140-220	14,000-22,000
Gurgaon-MG Road	140-230	15,000-20,000
Rest of Gurgaon	60-100	8,000-14,000
Noida	130-220	14,000-25,000
Ghaziabad	90-150	10,500-16,000

The retail component of Delhi Airport Metro Express-Shivaji Marg Station commenced operations with nearly  45 to 50% occupancy. Rents &
capital values remained stable over the May month.

 Residential Market..!
Residential sales remained stable in Delhi NCR  during May (2012). Projects launched in May included  Assotech Blith located at sector 99 on Dwarka Expressway, Paras Irene located at Sector 70 A, Gurgaon &  Shubhkamna Legend, located at Sector 150, Noida.

Residential	Rents	Capital Value
Key Precincts	INR per month for a 1,000 sq ft 2BHK apartment	INR per sq ft
Golf Course Road	18,000-21,000	10,000-16,000
Sohna Road	10,000-11,500	5,000-7,500
Golf Course Extension Road	10,000-13,000	6,200-7,700
Noida-Greater Noida Expressway	11,000-13,000	4,000-5,500
Noida City	12,000-14,000	4,200-6,000
Indirapuram	10,000-11,000	3,300-4,000

There was a nominal increase in rents in few completed projects. Capital values remained stable across all sub markets.


INFRASTRUCTURE ONGOING ..!
*  Announcement of signal - free road link from NH  8 to Golf
Course Road.

*  Proposed Airport in Jevar, Greater Noida cancelled. This might adversely impact residential prices in surrounding areas.

*  Yamuna Expressway to be opened by July to August 2012.


Src: Jones Lang LaSalle

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