by Mr. Anuj Puri, Chairman & Country Head, Jones Lang LaSalle
India
The Rise Of The Suburbs..
Stock-weighted average prices across India rose by 10 % y / y
during the first three quarters of 2013.
The growth in prices was clearly skewed in favour of suburban
and newly emerging locations as
opposed to established city sub-markets (barring a few
exceptions).
Markets like Kolkata, which have traditionally catered to low
and mid-segment buyers, witnessed sharp price rises. In this period,
rental values across India increased by a relatively modest
8.0%.
Hyderabad proved to be an outlier, as capital values rose
sharply owing to the changes in the State
Government’s housing policy.
Capital Value growth YTD
2013 over previous year
(stock-weighted % growth -
Avg 1Q13-3Q13 / Avg 1Q12-3Q12)
In mid-2012, the Andhra Pradesh Government had enforced a policy
making it mandatory to provide EWS housing in every project
covering one acre or more. Few new
projects were launched after this, until early 2013.
Rental Value
growth YTD over the previous year
(stock-weighted
% growth - Avg 1Q13-3Q13 / Avg 1Q12-3Q12)
The policy was later revised to include only projects with five
acres or more of land for mandatory
inclusion of EWS housing. With this revision and a thinning of
previous unsold inventory, more new
projects were launched at higher price points.
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