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PROPEQUITY

Creating Investor Intelligence

Tier I Cities
Residential Market
Dynamics
Oct 2013

PropEquity

PROPEQUITY

2

Creating Investor Intelligence

Index
SR. NO.

TOPIC

PAGE NO.

1

Glossary

3

2

Economic Snapshot

4

3

7 Prominent Cities: Real Estate Trends

7

4

National Capital Region

9

5

Mumbai Metropolitan Region

13

6

Bengaluru

17

7

Pune

21

8

Kolkata

25

8

Chennai

29

9

Hyderabad

33

12

Snapshot Q3 2013 vs. Q3 2012

37

13

Disclaimer

39

PROPEQUITY

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Creating Investor Intelligence

Glossary
Acronym

Particulars

YTD

Year Till Data - Represents data till October 2013

NCR

National Capital Region

MMR

Mumbai Metropolitan Region

Sft

Square Feet

Y-o-Y

Year on Year

Q-o-Q

Quarter on Quarter

INR

Indian Rupees

Mn

Million

x

Times / Multiple

PROPEQUITY

Creating Investor Intelligence

Macro Economic Snapshot

PROPEQUITY
Creating Investor Intelligence

7% 9.00% 10.9% 6.3% 6.5% 8.6% GDP Growth Rate 8.3% 6.8% 4.3% 8.00% 9.4% 4.3% 4.4% 9.7% 6.5% 5.9% 8.8% 7.3% 5.00% Q3 Q4 FY 08 Q1 Q2 Q3 FY 09 Q4 Q1 Q2 Q3 FY 10 Q4 Q1 Q2 Q3 FY 11 Q4 Q1 Q2 Q3 FY 12 Q4 Q1 Q2 Q3 FY 13 Q4 Q1 Q2 FY 14 Source: RBI .8% 8.7% 4. declining industrial output and stagnation in service sector  Any significant hopes of revival are expected to be highly dependent upon the results of the upcoming parliamentary elections India’s GDP Growth Trend 12.00% 7.5% 7.00% 5. persistently high inflation rate.1% 6.8% 7.PROPEQUITY 5 Creating Investor Intelligence India: A Macroeconomic Perspective  The Q-o-Q GDP growth rate of India has been persistently declining. which is attributable to a combination of factors such as weak global economic scenario.3% 7.00% 2.1% 5.00% 0.8% 4.

5% 4.2% 7.60% 1.0% 8% Repo Rate (%) 7.8% 7.0% 6. reflecting the efficacy of corrective measures adopted by the RBI Gross Fiscal Deficit as % of GDP 7.60% 4. However.0% 5.6% 4% Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Source: MOSPI.PROPEQUITY 6 Creating Investor Intelligence India: A Macroeconomic Perspective  RBI has adopted tight monetary policy measures with a focus to tame inflation  The policy has led to soaring interest rates in the economy and consequently increasing the cost of capital  Indian economy has witnessed stubbornly high inflation in the past.0% 2.5% 7.5% 7% 8.1% 8.0% 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Trend ~ Inflation vs. Repo Rate Percentage 9% Inflation (%) 8.30% 2.0% 0. RBI .0% 3.10% 4.0% 4. Finance Ministry.00% 5.3% 6.0% 6.5% 7.90% 3. a declining trend has been witnessed from March 2013.40% 6.3% 6% 5% 7.

PROPEQUITY Creating Investor Intelligence 7 Prominent Cities: Real Estate Trends PROPEQUITY Creating Investor Intelligence .

526 61.303 Supply Additions (Units) 5.588 3.945 BENGALURU Weighted Average Launch Price (INR/Sft) Oct 2012 Oct 2013 6.490 Supply Additions (Units) Absorption (Units) 1.886 166.Snapshot Oct 2012 Oct 2013 KOLKATA Oct 2012 Oct 2013 Supply Additions (Units) 9.492 6.987 3.563 506 59.268 Supply Additions (Units) 4.810 HYDERABAD Oct 2012 Oct 2013 MMR Oct 2012 Oct 2013 Supply Additions (Units) 1.486 38.033 4.777 4.051 11.PROPEQUITY 8 Creating Investor Intelligence October 2013 .825 4.530 Absorption (Units) 2.562 5.409 Absorption (Units) 3.424 Unsold Supply (Units) 147.221 710 Unsold Supply (Units) 24.683 3.682 Unsold Supply (Units) 41.210 Unsold Supply (Units) 152.505 1.477 .231 163.814 42.559 Unsold Supply (Units) Weighted Average Launch Price (INR/Sft) PUNE CHENNAI Oct 2012 Oct 2013 2.420 Weighted Average Launch Price (INR/Sft) 2.064 457 Absorption (Units) 9.857 Weighted Average Launch Price (INR/Sft) 3.465 1.939 4.458 4.811 Absorption (Units) 6.230 3.628 Absorption (Units) 4.259 NCR Oct 2012 Oct 2013 Supply Additions (Units) 3.670 1.454 Weighted Average Launch Price (INR/Sft) 2.835 3.802 6.962 Weighted Average Launch Price (INR/Sft) 4.966 Absorption (Units) 1.025 24.301 2.199 79.071 Unsold Supply (Units) 65.361 Unsold Supply (Units) 37.066 Weighted Average Launch Price (INR/Sft) 3.268 3.944 Supply Additions (Units) 1.

Greater NOIDA. NOIDA.9 PROPEQUITY Creating Investor Intelligence National Capital Region NCR – Delhi. Ghaziabad. Faridabad . Gurgaon.

Supply & Absorption Dynamics Quarterly Supply Additions Y-o-Y Comparative Supply Absorption Dynamics Months of Inventory 30 30 22 30. Absorptions remained flat  Inventory build up has been persistently increasing and stood at 33 months as on end of Oct 2013  Average quarterly value of launches of first three quarters of 2013 has declined by approx.PROPEQUITY 10 Creating Investor Intelligence NCR . 9% as compared to corresponding period of 2012 .000 35 86. first ten months of 2013 and 2012 have witnessed comparable supply additions and absorption • Jan-Oct 2013 Q4 YTD Quarterly Absorptions Y-o-Y Comparative 70.133 Absorption (LHS) Months of Inventory Supply (LHS) Jan-Oct 2012 Jan-Oct 2013 Supply additions dropped marginally ~ 3%. supply additions in Q3 2013 declined by 47% and absorptions waned by 30% over the corresponding time period of 2012  However.000 11 15 15 21 19 18 25 21 17 17 20 15 10 10.728 Q2 2011 • Jan-Oct 2012 0 Q1 70.947 In Units 40.000 20.000 5 0 3% Q3 Average Quarterly Value of Launches INR 173 Bn Q4 Q1 Q2 Q3 Q4 Q1 2012 Average Quarterly Value of Launches INR 184 Bn Q2 Q3 2013 Average Quarterly Value of Launches INR 168 Bn  Despite Q3 being the beginning of festive season. both in terms of launches & absorption On Y-o-Y basis.335 33 50.000 89. Q3 2013 witnessed lukewarm real estate activity.

000 4.810 7.000 160 150 5.420 Decrease 3% 27% 147. Availability Trend Increase 23% 5.000 130 120 3.Pricing & Unsold Supply Trend New Launch Pricing Y-o-Y Comparative Launch Price vs.PROPEQUITY 11 Creating Investor Intelligence NCR . led to sharp increase in weighted average price of new launches in 2013 Oct 2013 11% 163.000 Q1 Q2 Q3 Q4 2011  Robust absorption rates kept unsold supply in 2011 under check enabling developers to drive up capital values  Weighted average price of new launches increased 26% in 2011  The capital value momentum can be mapped to increased development focus in certain new pockets of Gurgaon & NOIDA Q1 Q2 Q3 Q4 Q1 Q2 Q3 Oct 2012 Unsold Supply Y-o-Y Comparative Q4 YTD 2012 2013  Unsold supply build-up ~ Inhibited capital value escalations  Stagnant average capital values attributable to increased new launches in Affordable / peripheral locations of NCR such as Greater NOIDA (West).000 140 4.562 170 6.231 Increase 26% 180 Weighted Average Launch Price INR Per Sft Units In Thousands Availability Oct 2012 Oct 2013 . Etc.  Increased development focus in high capital value pockets of Gurgaon. like Dwarka Expressway.000 110 100 2. Raj Nagar Extension. Yamuna Expressway.

000 160.000 60.012 UNITS 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years .PROPEQUITY 12 Creating Investor Intelligence NCR .777 527.000 140.679 97.715 4.003 Total Units 96.000 100.928 96.000 0 ESTIMATED TOTAL COMPLETIONS BY END OF YR. 2012 ~ 96.000 120.012 96.691 UNITS UNITS COMPLETED TILL YR.000 40. 2017 ~ 720.000 180.406 UNITS ESTIMATED TOTAL COMPLETIONS BY END OF YR.000 80.Delivery Track Record & Future Commitments Over 5 times average annual delivery commitments between 2014 – 2017 in NCR Raises execution concerns Y-o-Y Unit Completions 5. 2013 ~ 192.679 131.0x 200.5x Average Annual Delivered & To Be Delivered Units 24.000 20.

AML Classification Limited Affordable housing options in NCR Mid End segment .PROPEQUITY 13 Creating Investor Intelligence NCR .2013YTD Y-o-Y Segment Wise NEW LAUNCH Trend 2013 A 3% 2012 A 6% 2011 A 6% 0% M 71% L 26% M 67% M 74% 20% 40% Luxury 24% L 27% Mid 71% L 20% 60% 80% Affordable 5% 100% Segment Wise Absorption Split 2011.Dominant budget segment in NCR with 70% contribution to supply as well as absorptions Segment Wise Supply Split 2011.2013YTD Y-o-Y Segment Wise ABSORPTION Trend 2013 A 4% 2012 A 5% 2011 A 5% 0% M 76% L 21% M 68% M 76% 20% 40% Mid 73% L 27% L 19% 60% 80% 100% Luxury 22% Affordable 5% .

Navi Mumbai. Thane .14 PROPEQUITY Creating Investor Intelligence Mumbai Metropolitan Region MMR – Mumbai.

000 25 50 40 32 30.922 In Units 40.Supply & Absorption Dynamics Quarterly Supply Additions Y-o-Y Comparative Supply Absorption Dynamics Months of Inventory 43 13 15 18 20 21 24 21 25 30 20 10.509 Absorption (LHS) Months of Inventory Supply (LHS) Supply additions dropped by 30%. while Mumbai’s share in new launches stood at 25% On Y-o-Y basis.PROPEQUITY 15 Creating Investor Intelligence MMR .000 87.440 20.000 10 0 Q2 Q3 2011 Average Quarterly Value of Launches INR 165 Bn Q4 Q1 Q2 Q3 Q4 Q1 2012 Average Quarterly Value of Launches INR 115 Bn Q2 Q3 Jan-Oct 2013 Q4 YTD 2013 Average Quarterly Value of Launches INR 122 Bn  Thane & Navi Mumbai accounted for 75% of project launches in Q3 2013 in MMR. supply additions in Q3 2013 declined by 40% and absorptions waned by 39% over the corresponding time period of 2012  First ten months of 2013.000 60 66.878 50. Absorptions declined by 26%  Significant decline in absorption levels led to sharp increase in inventory overhang which stood at 48 months as on end of Oct 2013  Average quarterly value of launches of first three quarters of 2013 compared to 2012 registered a modest growth of 6% .000 48 60. compared with corresponding period of 2012. also registered a sharp drop in supply additions and absorptions • Jan-Oct 2012 0 Q1 • 30% 56% Quarterly Absorptions Y-o-Y Comparative 26% Jan-Oct 2012 Jan-Oct 2013 49.

8% increase in unsold supply in tandem with declining absorption rates • Navi Mumbai & Thane inhibiting capital value accounted for 90% of new escalations supply additions  Q3 & Q4 witnessed higher  Weighted average concentration of new capital values on launch supply in Mumbai.000 170 8.Pricing & Unsold Supply Trend New Launch Pricing Y-o-Y Comparative Launch Price vs. Availability Trend 9.000 10 1.000 90 4. basis exhibited a 20% ~ Resulting in decrease of 8% increased capital values Oct 2012 166.000 50 30 2.886 Increase 20% 190 Weighted Average Launch Price INR Per Sft Units In Thousands Availability Oct 2013 .000 150 7. Iris.000 130 6.802 Increase 31% 7% 152. Crescent Aria. Darshan Pride. etc. Q1 Q2 Q3 Q4 2012  Drop in average capital values in Q1 & Q2 2012 mapped to larger share of new launches in Thane & Navi Mumbai Q1 Q2 Q3 Q4 YTD 0 Oct 2012 Oct 2013 Unsold Supply Y-o-Y Comparative 9% 2013  Approx. approx.000 Q1 Q2 Q3 Q4 2011  Unsold supply in 2011 was constant in MMR  The spike noticed in weighted average launch price in Q2 2011 is attributable to large ticket size launches in Mumbai such as Razzak Heaven.303 Decrease 8% 6.PROPEQUITY 16 Creating Investor Intelligence MMR .945 -10 6.000 70 3.000 110 5.

777 353.887 Total Units 187. 2017 ~ 637.Delivery Track Record & Future Commitments Y-o-Y Unit Completions Approx. 2012 ~ 187.550 96.000 140.000 120.000 0 ESTIMATED TOTAL COMPLETIONS BY END OF YR.550 UNITS 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years .PROPEQUITY 17 Creating Investor Intelligence MMR .050 97.9 times average annual delivery commitments between 2014 – 2017 in MMR Likely to meet future delivery commitments However.000 80.050 88.000 60.600 UNITS UNITS COMPLETED TILL YR.000 100.360 96.041 UNITS ESTIMATED TOTAL COMPLETIONS BY END OF YR. 2013 ~ 283.000 40.441 2.0x 180. 1. Navi Mumbai may witness execution slippages due to large scale project launches 1.9x Average Annual Delivered & To Be Delivered Units 46.000 20.000 160.

2013YTD Y-o-Y Segment Wise NEW LAUNCH Trend A 25% 2013 M 47% A 30% 2012 M 50% A 28% 2011 0% 40% Luxury 22% L 21% M 51% 20% Mid 50% L 28% L 21% 60% 80% Affordable 28% 100% Segment Wise Absorption Split 2011.PROPEQUITY 18 Creating Investor Intelligence MMR .2013YTD Y-o-Y Segment Wise ABSORPTION Trend A 24% 2013 M 53% A 28% 2012 M 49% A 24% 2011 0% 40% Luxury 23% L 22% M 53% 20% Mid 51% L 24% L 23% 60% 80% 100% Affordable 26% .AML Classification Expanding Mid-End segment owing to majority launches in satellite cities Increased share of Luxury segment in 2013 ~ Mapped to new launches in Mumbai Segment Wise Supply Split 2011.

19 PROPEQUITY Creating Investor Intelligence Bengaluru .

000 15. 24% as compared to corresponding period of 2012 primarily due to capital value escalations Oct 2012 40.961 25.341 Absorption (LHS) Months of Inventory Supply (LHS) 0 Q1 Q2 Q3 2011 Average Quarterly Value of Launches INR 90 Bn Q4 Q1 Q2 Q3 Q4 Q1 2012 Average Quarterly Value of Launches INR 82 Bn Q2 Q3 Q4 YTD 2013 Average Quarterly Value of Launches INR 102 Bn Jan-Oct 2012 Jan-Oct 2013 Quarterly Absorptions Y-o-Y Comparative  Moderate correction in supply additions and absorptions witnessed in Q3 2013  On Y-o-Y basis. Absorptions increased by 8% 37.000 26 24 18 15 15 18 25 18 15 15 15 30 20 15 15 12 10.595 •  Gradual decline in quarterly absorptions beginning from Q1 2013 contributing to inventory pile up ~ Inventory overhang increased from 15 months in Q1 2013 to 26 months as on end of Oct 2013  Average quarterly value of launches of first three quarters of 2013 increased by approx.464 8% Oct 2013 . an increase in supply additions and absorptions was registered Supply additions increased by 12%.Supply & Absorption Dynamics Quarterly Supply Additions Y-o-Y Comparative Supply Absorption Dynamics Months of Inventory In Units 20. supply additions in Q3 2013 declined by 14% and absorptions waned by 17% over the corresponding time period of 2012  However.PROPEQUITY 20 Creating Investor Intelligence Bengaluru .000 10 5.000 5 0 12% 56% 51.000 46. on comparison of first ten months of 2013 with the corresponding period of 2012.

Pricing & Unsold Supply Trend New Launch Pricing Y-o-Y Comparative Launch Price vs.PROPEQUITY 21 Creating Investor Intelligence Bengaluru . Nitesh Logos.000 4. Q3 Q4 Q1 Q2 2012  Modest increase in capital values attributable to • • Increased new supply additions in lower budget segment Larger chunk of supply in locations commanding lower capital values than city average Q3 Oct 2013 Unsold Supply Y-o-Y Comparative Q4 YTD 21% 2013  Capital values exhibit a 20% increase from Q1 Q4 2013 • Capital value increase primarily driven by high ticket size launches such as Indraprastha by Sobha Developers. etc.000 80 4.066 Q2 Oct 2012 65. etc. Oct 2012 79.000 30 1.777 Increase 10% 90 13% Weighted Average Launch Price 3.000 10 500 0 0 Q3 Q4 Q1 Q2 2011  Build-up of unsold supply witnessed in Bengaluru in 2011  Weighted average price of new launches increased by 10% in 2011 ~ Primarily on account of high ticket price launches such as Century Square.500 60 3.500 70 4.500 20 1. 77o Sky by DivyaSree.500 40 2.000 50 2.199 Q1 INR Per Sft Units In Thousands Availability Oct 2013 . Four Seasons Private Residences. Availability Trend Increase 20% 5.259 Increase 6% 3.

481 UNITS 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years .773 UNITS ESTIMATED TOTAL COMPLETIONS BY END OF YR.000 40.000 10.000 30. 2017 ~ 296.000 ESTIMATED TOTAL COMPLETIONS BY END OF YR.000 60. 2.798 41.000 80.494 2.PROPEQUITY 22 Creating Investor Intelligence Bengaluru .Delivery Track Record & Future Commitments Approx.000 50.000 70.0x 90.279 UNITS 20.874 43.000 0 UNITS COMPLETED TILL YR. 2013 ~ 129.0 times average annual delivery commitments between 2014 – 2017 in Bengaluru At the present rate of execution.798 97.777 167. Bengaluru may meet future delivery commitments Y-o-Y Unit Completions 2. 2012 ~ 85.370 Total Units 85.0x Average Annual Delivered & To Be Delivered Units 21.481 43.

PROPEQUITY 23 Creating Investor Intelligence Bengaluru .AML Classification Dominant Mid-End budget segment ~ Constituting two .2013YTD Y-o-Y Segment Wise ABSORPTION Trend 2013 A 13% 2012 A 14% M 68% M 64% A 18% 2011 0% L 18% L 22% M 66% 20% 40% Mid 66% L 16% 60% 80% Luxury 19% Affordable 15% 100% .2013YTD Y-o-Y Segment Wise NEW LAUNCH Trend A 9% 2013 M 69% A 13% 2012 M 66% A 11% 2011 0% L 23% L 21% M 67% 20% Mid 67% Luxury 22% L 22% 40% 60% 80% Affordable 11% 100% Segment Wise Absorption Split 2011.third of supply Affordable budget segment shrinking gradually ~ Declining contribution to supply as well as absorption Segment Wise Supply Split 2011.

24 PROPEQUITY Creating Investor Intelligence Pune .

000 27 24 In Units 20.000 5 0 30% 56% Jan-Oct 2012 Jan-Oct 2013 30.048 • 39.935  Q3 2013 witnessed muted real estate activity both in terms of launches & absorption Supply additions decreased by 30%. Absorptions declined by 27%  Gradual decline in quarterly absorptions beginning from Q3 2012 contributing to inventory pile up ~ Inventory overhang increased from 12 months in Q3 2012 to 27 months as on end of Oct 2013  Average quarterly value of launches for the first three quarters has dropped significantly in 2013 compared to 2012 on account of sharp reduction in new supply additions in Pune .000 25 21 18 15 12 15 15 18 20 15 12 30 15 12 10.000 10 5.146 Absorption (LHS) Months of Inventory Supply (LHS) 42.000 15.904 Quarterly Supply Additions Y-o-Y Comparative Supply Absorption Dynamics 0 Q1 Q2 Q3 2011 Average Quarterly Value of Launches INR 52 Bn Q4 Q1 Q2 Q3 Q4 Q1 2012 Average Quarterly Value of Launches INR 52 Bn Q2 Q3 Q4 YTD 2013 Average Quarterly Value of Launches INR 35 Bn Quarterly Absorptions Y-o-Y Comparative On Y-o-Y basis.Supply & Absorption Dynamics Months of Inventory 25. supply additions in Q3 2013 declined by 35% and absorptions waned by 46% over the corresponding time period of 2012  Decline in supply additions & absorptions over the first ten months of 2013 compared to the corresponding period of 2012 • 27% Jan-Oct 2012 Jan-Oct 2013 29.PROPEQUITY 25 Creating Investor Intelligence Pune .

Nanded City.825 4. 59.500 50 3. Divine.530 Decrease 2% 65 22% Weighted Average Launch Price INR Per Sft Units In Thousands Availability Oct 2013 .500 40 1. 38% of total new project launches in Q4 2012 were launched in > INR 5000/Sft bracket ~ Pushing up the average capital value Q1 Q2 Q3 Oct 2012 Oct 2013 Unsold Supply Y-o-Y Comparative Q4 YTD 3% 2013  Average capital values on launch basis increased by 11% in first ten months of 2013  Capital values on launch basis impacted by launches in higher budget segment such as Kyra.PROPEQUITY 26 Creating Investor Intelligence Pune . drove up capital values  Approx. etc.500 1.682 Increase 7% Oct 2012 61.000 35 500 30 0 Q2 Q3 Q4 2011  Launch of large scale projects such as Kul Ecoloch. Brisa. Rose. Ribera. Prive.526 Q1 4.000 3.000 2.500 60 4.000 45 2. etc. Basilo. Availability Trend Increase 11% 5. etc. Icon.000 55 3. Suyog Pushpa. led to a marginal build-up of unsold supply in 2011 and inhibited increase in capital values  Weighted average price of new launches decreased by 2% Q1 Q2 Q3 Q4 2012  High ticket launches in Q1 & Q2 2012 such as Cascada.Pricing & Unsold Supply Trend New Launch Pricing Y-o-Y Comparative Launch Price vs.

627 49.1 times average annual delivery commitments between 2014 – 2017 in Pune Focus on managing unsold supply leading to attainable projection of supply commitment Y-o-Y Unit Completions 1. 2013 ~ 177.000 40.000 ESTIMATED TOTAL COMPLETIONS BY END OF YR.6x 80.Delivery Track Record & Future Commitments Approx.370 1.092 49.907 Total Units 127.627UNITS 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years .000 ESTIMATED TOTAL COMPLETIONS BY END OF YR. 1.PROPEQUITY 27 Creating Investor Intelligence Pune .000 30.777 136.139 UNITS 20.509UNITS 50.1x Average Annual Delivered & To Be Delivered Units 31.000 70.512 97.000 60. 2017 ~ 313. 2012 ~ 127.512 34.000 0 UNITS COMPLETED TILL YR.000 10.

PROPEQUITY 28 Creating Investor Intelligence Pune .AML Classification Dominant budget segment ~ Mid-End Real estate activity picking up in the Luxury segment with considerable shrinkage in Affordable budget segment Segment Wise Supply Split 2011.2013YTD Y-o-Y Segment Wise NEW LAUNCH Trend A 15% 2013 M 70% Mid 65% L 14% 2012 A 24% M 64% L 12% 2011 A 25% M 63% L 12% 0% 20% 40% 60% 80% Luxury 13% Affordable 22% 100% Segment Wise Absorption Split 2011.2013YTD Y-o-Y Segment Wise ABSORPTION Trend A 18% 2013 M 70% A 27% 2012 M 62% A 20% 2011 0% L 12% L 11% M 69% 20% 40% L 11% 60% 80% 100% Mid 67% Luxury 11% Affordable 22% .

29 PROPEQUITY Creating Investor Intelligence Kolkata .

000 21 4.000 0 Q1 Q2 Q3 2011 Average Quarterly Value of Launches INR 16 Bn Q2 Q3 2012 Average Quarterly Value of Launches INR 24 Bn Q4 Q1 Q2 Q3 40 35 30 25 20 15 10 5 0 Jan-Oct 2012 Jan-Oct 2013 Q4 YTD 2013 Average Quarterly Value of Launches INR 15 Bn  Despite Q3 being the beginning of festive season.000 1.000 12 15 15 15 15 Q4 Q1 21 18 18 21 2.PROPEQUITY 30 Creating Investor Intelligence Kolkata .Supply & Absorption Dynamics 34 6.251 Months of Inventory 12. supply additions in Q3 2013 declined by 53% and absorptions waned by 29% over the corresponding time period of 2012  Gradual decline in quarterly absorptions beginning from Q2 2013 contributing to inventory pile up ~ Inventory overhang increased from 18 months in Q1 2013 to 34 months as on end of Oct 2013  37% drop in average quarterly value of launches in first three quarters of 2013 over corresponding time period of 2012 primarily on account of fewer new launches Quarterly Absorptions Y-o-Y Comparative 12% Jan-Oct 2012 Jan-Oct 2013 10. fewer new supply additions were observed in Kolkata ~ Developers resorting to supply adjustment in the wake of mounting inventory overhang • 36% 56% On Y-o-Y basis.461 Quarterly Supply Additions Y-o-Y Comparative Supply .000 11.440 Absorption (LHS) Months of Inventory Supply (LHS) 17.Absorption Dynamics .000 3.000 30 In Units 5.904 7.

000 25 INR Per Sft Units In Thousands Availability Oct 2012 Oct 2013 .500 3.Pricing & Unsold Supply Trend New Launch Pricing Y-o-Y Comparative Launch Price vs. etc.424 Q2 Oct 2012 24.000 – INR 3.PROPEQUITY 31 Creating Investor Intelligence Kolkata .500 15 2. Magnum. Rajarhat. Himadri.500 1. Mandeville Garden.025 Q1 2.500 20 3. ~ Driving up the average capital values in the city Oct 2013 2% 24.)  Developers resorted to adjusting new supply additions inline with absorption trend ~ Resulting in steady absolute unsold supply levels  High ticket price launches witnessed in micro markets of Topsia. etc.962 Decrease 6% 30 33% Weighted Average Launch Price 3.000/Sft Q1 Q2 Q3 Q4 Q1 Q2 Q3 Unsold Supply Y-o-Y Comparative Q4 YTD 2012 2013  Build-up of unsold supply led to a correction in new launch project pricing ~ 4% decrease  The sporadic movement of price in Q2 2012 is attributable to project launches in higher budget segment (P.000 2.987 4.000 10 1.S. Availability Trend Decrease 4% Increase 27% 4.000 5 500 0 0 Q3 Q4 2011  Weighted average price of new launches exhibit a decrease of 6%  Increasing absolute unsold supply coupled with sizable new supply addition in lower budget segment ~ Negatively impacting average capital values • Several launches in the price falling in the price range of INR 2.

Delivery Track Record & Future Commitments Y-o-Y Unit Completions Approx.6x 30.000 10. 1.000 25.582 1.000 5.000 15.974 UNITS ESTIMATED TOTAL COMPLETIONS BY END OF YR.141 15.251 13.141 97.392 UNITS UNITS COMPLETED TILL YR.777 62.000 20.251 UNITS 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years . 2013 ~ 45. 2012 ~ 32. 2017 ~ 107.9 times average annual delivery commitments between 2014 – 2017 in Kolkata Relatively smaller market size of organized real estate development in Kolkata Meeting delivery commitments might not be a challenge 1.9x Average Annual Delivered & To Be Delivered Units 8.000 0 ESTIMATED TOTAL COMPLETIONS BY END OF YR.645 13.063 Total Units 32.PROPEQUITY 32 Creating Investor Intelligence Kolkata .

AML Classification Decreasing share of Affordable and Luxury segment launches Consolidation of real activity in the Mid-End budget segment Segment Wise Supply Split 2011.PROPEQUITY 33 Creating Investor Intelligence Kolkata .2013YTD Y-o-Y Segment Wise ABSORPTION Trend A 25% 2013 M 62% A 31% 2012 M 50% A 25% 2011 0% 40% Luxury 18% L 18% M 54% 20% Mid 55% L 13% L 20% 60% 80% 100% Affordable 27% .2013YTD Y-o-Y Segment Wise NEW LAUNCH Trend A 23% 2013 M 65% L 12% 2012 A 35% M 50% L 15% 2011 A 35% M 49% L 16% 0% 20% 40% 60% Mid 53% 80% Luxury 15% Affordable 32% 100% Segment Wise Absorption Split 2011.

34 PROPEQUITY Creating Investor Intelligence Chennai .

391 In Units 8.000 5 2.416 14.Supply & Absorption Dynamics Quarterly Supply Additions Y-o-Y Comparative Supply Absorption Dynamics Months of Inventory 27 24 12.004  Q3 2013 witnessed muted real estate activity both in terms of launches & absorption.000 18 15 12 15 15 12 18 20 15 15 15 10 4.000 0 29% 56% Jan-Oct 2012 Jan-Oct 2013 0 Q1 Q2 Q3 2011 Average Quarterly Value of Launches INR 52 Bn Q4 Q1 Q2 Q3 Q4 Q1 2012 Average Quarterly Value of Launches INR 43 Bn Q2 Q3 Q4 YTD 2013 Average Quarterly Value of Launches INR 35 Bn Quarterly Absorptions Y-o-Y Comparative • On Y-o-Y basis.000 6. absorptions outpacing supply additions indicate “cleanup” from old inventory 18% 20. however.000 28. Absorptions declined by 18% • 17% drop in supply additions in the first three quarters of 2013 over the corresponding period of 2012 resulted in 19% drop in average quarterly value of launches 25.000 25 21 10.616 Absorption (LHS) Months of Inventory Supply (LHS)  Gradual decline in quarterly absorptions beginning from Q1 2013 contributing to inventory pile up ~ Inventory overhang increased from 18 months in Q1 2013 to 27 months as on end of Oct 2013  Average quarterly value of launches for the first three quarters exhibits declining trend Jan-Oct 2012 Jan-Oct 2013 .000 30 20. supply additions in Q3 2013 declined by 47% and absorptions declined by 27% over the corresponding time period of 2012  Supply additions & absorptions also declined over the first ten months of 2013 compared to the corresponding period of 2012 • Supply additions decreased by 29%.PROPEQUITY 35 Creating Investor Intelligence Chennai .

814 No Change 50 9% Weighted Average Launch Price INR Per Sft Units In Thousands Availability Oct 2012 Oct 2013 .000 25 2.000 35 3. Czars.000 15 1. Sundaram.500 30 3.  Sharp decrease in capital values was recorded in Q4 2013 YTD owing to larger share of launches in the Affordable segment 42.000 45 4.857 Q1 3. Availability Trend 5. etc.000 5 500 0 0 Q2 Q3 Q4 2011  High unsold supply build up in 2011 inhibited launch capital value escalations  Weighted average price of new launches remained unchanged in 2011 Q1 Q2 Q3 Q4 2012  Year 2012 witnessed a build up in absolute unsold supply which kept capital values under check  Weighted average price of new launches decreased 2% in 2012 Q1 Q2 Q3 Oct 2012 Oct 2013 Unsold Supply Y-o-Y Comparative Q4 YTD 2% 2013  Weighted average price of new launches increased 18% till Q3 2013 due to launches in higher budget segment such as to high ticket new launches like Prestige Downtown.477 3.Pricing & Unsold Supply Trend New Launch Pricing Y-o-Y Comparative Launch Price vs.500 20 2.PROPEQUITY 36 Creating Investor Intelligence Chennai .500 40 4.500 10 1.835 Decrease 8% Decrease 2% 41. Isha Poriyagham.

000 35.955 UNITS ESTIMATED TOTAL COMPLETIONS BY END OF YR.000 45.000 25.2x Average Annual Delivered & To Be Delivered Units 11.000 30.522 24.Delivery Track Record & Future Commitments Y-o-Y Unit Completions Approx.000 40. 2012 ~ 45.000 0 ESTIMATED TOTAL COMPLETIONS BY END OF YR.261 3.000 10. 2017 ~ 177.000 15.000 20.694 UNITS UNITS COMPLETED TILL YR.777 97.2 times average annual delivery commitments between 2014 – 2017 in Chennai Lower average annual delivery commitments from 2014 onwards as compared to 2013 project deliveries 2.1x 50.172 UNITS 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years .172 35. 2.315 35.000 5. 2013 ~ 80.293 Total Units 45.PROPEQUITY 37 Creating Investor Intelligence Chennai .522 97.

PROPEQUITY 38 Creating Investor Intelligence Chennai .2013YTD Y-o-Y Segment Wise ABSORPTION Trend 2013 A 20% 2012 A 20% M 67% M 64% A 25% 2011 0% 40% Luxury 17% L 16% M 56% 20% Mid 61% L 14% L 19% 60% 80% 100% Affordable 22% .2013YTD Y-o-Y Segment Wise NEW LAUNCH Trend A 17% 2013 M 70% A 14% 2012 M 71% A 20% 2011 L 13% 20% 40% Luxury 16% L 14% M 61% 0% Mid 67% L 18% 60% 80% Affordable 17% 100% Segment Wise Absorption Split 2011.AML Classification Dominant Mid-End segment ~ Registered 15% increase in supply share from 2011 to 2013 Waning Supply additions in Affordable segment Segment Wise Supply Split 2011.

39 PROPEQUITY Creating Investor Intelligence Hyderabad .

611 • Jan-Oct 2013 13.000 7.679 30 40 35 30 25 20 15 10 5 0 14.000 1.Supply & Absorption Dynamics Quarterly Supply Additions Y-o-Y Comparative Supply Absorption Dynamics Months of Inventory 30 24 21 Q1 Q2 Q3 2011 Average Quarterly Value of Launches INR 27 Bn Q4 27 24 24 Q1 Q2 Q3 24 24 Q4 Q1 2012 Average Quarterly Value of Launches INR 21 Bn 27 Q2 Q3 1% Q4 YTD 2013 Average Quarterly Value of Launches INR 28 Bn Jan-Oct 2012 Quarterly Absorptions Y-o-Y Comparative  Persistent uncertainty over the fate of Hyderabad with regards to Telangana issue translated into cautious approach from developers as reflected by fewer new launches in Q3 2013 On Y-o-Y basis. Absorptions declined by 6%  Since Q1 2013.000 9.000 8. which stood at 37 months as on end of October 2013  Average quarterly value of launches of first three quarters of 2013 has increased by approx.246 37 33 14. 33% as compared to corresponding period of 2012.000 3.407 10. primarily driven by low base effect Jan-Oct 2012 Jan-Oct 2013 .000 6.PROPEQUITY 40 Creating Investor Intelligence Hyderabad .000 2.000 4. marginal correction in supply additions & absorption has been witnessed over the first ten months of 2013 compared to the corresponding period of 2012 • 6% 14.000 5. supply additions in Q3 2013 declined by 40% and absorptions waned by 16% over the corresponding time period of 2012  However.000 Absorption (LHS) Months of Inventory In Units Supply (LHS) Supply additions decreased by 1%. Inventory has been on an increase.

500 33 32 1. declining absorption rate leading to increase of months of inventory activity in tandem with  Weighted average price of new  Weighted average Capital value on increase in capital values launches decreased by 7% launch basis increase by 38% ~ • The drop in capital values can  Increase in capital values primarily driven by high budget also be mapped to weak attributable launches in segment launches witnessed in investment sentiments in higher budget segment in Hyderabad owing to the Jubilee Hills.210 4.500 37 3. persistent Telangana issue Gachibowli. Oct 2012 38. Madhapur.500 0 Q2 Q3 2011 Q4 Q1 Q2 Q3 2012 Q4 Q1 Q2 Q3 Oct 2012 Oct 2013 Unsold Supply Y-o-Y Comparative Q4 YTD 4% 2013  Unsold supply in 2011 was fairly  2012 witnessed marginal  Unsold supply level increases marginally by 1.000 34 1. Availability Trend Increase 38% 39 4.5%.500 35 2.PROPEQUITY 41 Creating Investor Intelligence Hyderabad .939 Increase 27% 37.Pricing & Unsold Supply Trend New Launch Pricing Y-o-Y Comparative Launch Price vs. high in Hyderabad inhibiting build-up in unsold supply any capital value escalations primarily driven by new • However.000 36 2.000 38 3.486 Decrease 7% 40 43% Weighted Average Launch Price INR Per Sft Units In Thousands Availability Oct 2013 . Hi-Tech City. etc. etc.000 31 500 30 4.811 Q1 2. regions such as Gachibowli. Kukatpally.

2x 45.000 40.997 UNITS UNITS COMPLETED TILL YR.000 35. 2017 ~ 157. 2013 ~ 85.3x Average Annual Delivered & To Be Delivered Units 13.921 Total Units 55.777 71.000 0 ESTIMATED TOTAL COMPLETIONS BY END OF YR.000 5.685 30. 1.685 UNITS 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years .944 30.000 15.000 10.000 25.000 30. 2012 ~ 55.773 UNITS ESTIMATED TOTAL COMPLETIONS BY END OF YR.312 17.Delivery Track Record & Future Commitments Y-o-Y Unit Completions Approx.3 times average annual delivery commitments between 2014 – 2017 in Hyderabad Persistent overhang of Telangana issue compelled developers to adopt cautious approach Changes in political environment may lead to execution challenges 1.000 20.PROPEQUITY 42 Creating Investor Intelligence Hyderabad .312 97.776 2.

2013YTD Y-o-Y Segment Wise ABSORPTION Trend 2013 A 8% M 75% 2012 A 11% M 69% A 14% 2011 0% L 17% L 20% M 66% 20% 40% Mid 69% L 21% 60% 80% 100% Luxury 20% Affordable 11% .2013YTD Y-o-Y Segment Wise NEW LAUNCH Trend 2013 A 4% M 71% L 25% A 13% 2012 M 66% A 11% 2011 0% L 20% M 71% 20% 40% Mid 70% Luxury 20% L 18% 60% 80% Affordable 10% 100% Segment Wise Absorption Split 2011.PROPEQUITY 43 Creating Investor Intelligence Hyderabad .AML Classification Hyderabad depicting signs of a gradual transition to dominant Mid-End segment market Shrinking Affordable supply share ~ Dropped from11% to 4% over 2011 to 2013 YTD Luxury segment supply gradually picking up Segment Wise Supply Split 2011.

PROPEQUITY Creating Investor Intelligence Snapshot - PROPEQUITY Creating Investor Intelligence Jan-Oct 2013 vs. Jan-Oct 2012 .

3 x Positive Neutral Negative . Annual Delivered Units 5.9 x 2.PROPEQUITY 45 Creating Investor Intelligence Snapshot .1 x 1.5 x 1.Jan-Oct 2013 vs. Annual Future Committed Units / Avg. Jan-Oct 2012 Parameters NCR MMR Bengaluru Pune Kolkata Chennai Hyderabad Supply Addition Drop -3% Drop -30% Rise +12% Drop -30% Drop -36% Drop -29% Drop -1% Total Absorption No Change Drop -26% Rise +8% Drop -27% Drop -12% Drop -18% Drop -6% Unsold Supply Rise +11% Rise +9% Rise +21% Rise +3% Rise +2% Rise +2% Rise +4% Capital Values (Oct 2013 vs Oct 2012) Rise +27% Drop -7% Rise +13% Rise +22% Rise +33% Drop -9% Rise +43% Avg.2 x 1.9 x 2.0 x 1.

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