Indian Residential Real Estate 2013 A Review : The Rise Of The Suburbs



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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