Residential _draft Report_l&t 17.3.13v2

Pan India Residential market analysis

Presented to:

L&T

April,2013

Contents

2

• Residential market Mumbai 3

• Residential Market Navi Mumbai 8

• Residential Market Thane 13

• Residential market Pune 18

• Residential Market Gurgaon 24

• Residential market Noida 30

• Residential market Greater Noida 35

• Residential market Faridabad 41

Content

3

• Residential market Bangalore 50

• Residential Market Chennai 56

• Residential Market Hyderabad 62

• Residential Market Kolkata 68

Summary: City-wise Inference

4

CITY QUARTERS TO SELL QUARTERS TO COMPLETE INFERENCE

Mumbai 11.22 10.18 Market is having strong competition

Navi Mumbai 8.87 9.7 Market is having weak competition

Thane 7.66 8.2 Market is having weak competition

Pune 5.02 7.49 Market is having weak competition

Gurgaon 3.61 11.8 Market is having weak competition

Noida 5.75 10.9 Market is having weak competition

Greater Noida 13.1 11.7 Market is having strong competition

Gurgaon 3.61 11.8 Market is having strong competition

Ghaziabad 5.26 10.1 Market is having strong competition

Bangalore 5.68 8.68 Market is having strong competition

Chennai 5.18 7.92 Market is having strong competition

Hyderabad 9.06 7.07 Market is having strong competition

Kolkata 6.42 9.58 Market is having strong competition

MUMBAI Residential market

5

Price contour

6

Age of inventory & completed

units

7

Launch & absorption trend

8

Weighted average price

9

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

Unsold stock and quarters to

sale

10

Though the unsold inventory remained stable, quarters to sell significantly went up on account

of diminishing sales velocities.

Launch to completion price

appreciation

11

NAVI MUMBAI Residential market

12

Age of inventory & completed

units

13

Launch & absorption trend

14

Weighted average price

15

For the most part of the analysis period fresh launches were priced higher than the average inventory price, hinting at price appreciation and or quality appreciation at an inventory level.

Unsold stock & quarters to

sell

16

Though the unsold inventory marginally moved up, quarters to sell significantly went up on

account of diminishing sales velocities.

THANE Residential market

17

Age of inventory & completed

units

18

Launch and absorption trend

19

Weighted average price

20

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

Unsold stock and quarters to

sale

21

Though the unsold inventory marginally moved up, quarters to sell significantly went up on

account of diminishing sales velocities.

PUNE Residential market

22

Price contour map

23

Age of Inventory & Completed

units

24

Launch & absorption trend

25

Weighted average price

26

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

Unsold stock & quarters to

sale

27

The unsold inventory and quarters to sell remained constant on account of balanced unit launches and

sales.

Launch to completion price

appreciation

28

NCR_NATIONAL CAPITAL REGION Residential market

29

Price contour

30

Launch to completion price

appreciation for NCR

31

NCR_GURGAON Residential market

32

Launch trends

33

Absorption trend

34

Weighted average price

35

The most part of the analysis period fresh launches were at a noticeable discount to the average inventory price, however the last two quarters have seen a trend reversal.

Unsold stock & quarters to

sell

36

The unsold inventory and quarters to sell remained constant on account of balanced unit launches and

sales.

NCR_NOIDA Residential market

37

Age of inventory & completed

units

38

Launch & absorption trend

39

Weighted average price

40

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

Unsold stock & quarters to

sell

41

Though the unsold inventory marginally moved up, quarters to sell significantly went up on

account of diminishing sales velocities.

NCR_GREATER NOIDA Residential market

42

Age of Inventory & project

completions

43

Launch trend

44

Absorption trend

45

Weighted average price

46

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

Unsold stock & quarters to

sell

47

Though the unsold inventory marginally moved up, quarters to sell significantly went up on

account of diminishing sales velocities.

NCR_FARIDABAD Residential market

48

Launch & absorption trend

49

Weighted average price

50

Unsold stock & Quarters to

sell

51

The unsold inventory and quarters to sell remained constant on account of balanced unit launches and

sales.

NCR_GHAZIABAD Residential market

52

Launch & absorption trend

53

Weighted average price

54

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

Unsold stock & quarters to

sell

55

The unsold inventory and quarters to sell remained constant on account of balanced unit launches and

sales.

BANGALORE Residential Market

56

57

Price contour map

Age of Inventory & Project

completions

58

Launch to completion price

appreciation

59

Launch Trends

60

Absorption Trends

61

Weighted Average Price

62

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

63

Unsold stock & quarters to

sale

The unsold inventory and quarters to sell remained constant on account of balanced unit launches and

sales.

CHENNAI Residential Market

64

Price contour map

65

Launch to completion price

appreciation

66

Age of inventory & project

completion

67

Launch trends

68

Absorption trend

69

Weighted average price

70

Unsold stock and quarters to

sale

71

The unsold inventory and quarters to sell remained constant on account of balanced unit launches and

sales.

HYDERABAD Residential Market

72

Launch to completion price

appreciation

73

Age of inventory & project

completion

74

Launch trends

75

Absorption trend

76

Weighted average price

77

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

Unsold stock & quarters to

sale

78

The unsold inventory and quarters to sell remained constant on account of balanced unit launches and

sales.

KOLKATA Residential Market

79

Launch to completion price

appreciation

80

Age of inventory & project

completion

81

Launch trend

82

Absorption trend

83

Weighted average price

84

For the most part of the analysis period fresh launches were at a noticeable discount to the average inventory price

Unsold stock & quarters to

sale

85

The market has witnessed inventory buildup due to fresh launches and diminishing sales.

ANNEXURES

86

Price Appreciation launch to

completion

87

Price change from project launch to

completion

Average of CAGR %

Average of Absolute %

change

Bangalore 11% Bangalore 31%

Chennai 10% Chennai 26%

Hyderabad 4% Hyderabad 9%

Kolkata 13% Kolkata 46%

Mumbai 20% Mumbai 64%

NCR 19% NCR 66%

Pune 14% Pune 40%

Average Pan India 13%

Average Pan

India 41%

CASE Study: Superior selection

88

Since 2007, Chembur has witnessed the launch of 3,064 residential units, out of which almost 75% or 2,305 units have been sold. 2010 was an exceptionally good period for the residential property market for this destination. However, due to the slowdown in the overall Mumbai market, the inventory level in Chembur climbed up to 25% in Q2 2012

89

Being strategically located within the central zone, Chembur is not only connected with the major office markets of the central zone but also the island city zone, western zone and Navi Mumbai zone. Hence, the overall growth of employment in the MMR will feed the residential market of this destination. Due to its proximity to the revered office market of the Bandra Kurla Complex (BKC) and increasing concentration of office developments in the central zone, we expect the attractiveness of residential property in this destination to go up in future. At present, the destination has connectivity through the Eastern Expressway, which connects it with the prominent office space locations in the central zone. Besides, the mass rapid connectivity is provided by the suburban rail network that connects it with the CBD locations of Fort and Nariman Point through Mumbai CST. Going forward, scale of upcoming infrastructure projects will significantly boost the connectivity of Chembur in the foreseeable future. The Eastern Freeway Project is one important project that will link Chembur with the CBD of South Mumbai. This link, running parallel to the Eastern Expressway, is in advanced stages of construction and shall be operational by H2 2013. The Santacruz Chembur Link Road is another pivotal infrastructure project that will connect Chembur with the western zone. This 6.45 km. road will start at Amar Mahal Junction in Chembur and end up to Santacruz East thereby becoming a connecting link between the Eastern Expressway and the Western Expressway. This link will significantly reduce the travel time from Chembur to the western zone when it is ready in 2013. Connectivity through a mass rapid transport system has a particularly high bearing on the growth of real estate development in the MMR. The upcoming 20.2 km. Chembur –Wadala- Jacob Circle monorail project is the first monorail project in the MMR. Phase I beginning from Chembur and terminating at Wadala is in advanced stages of construction and expected to be open to public by early 2013. Phase II will connect Chembur with Jacob Circle in the island city zone via Wadala. This project will directly link Chembur with the office market of Lower Parel. The Metro Rail Phase II (Charkop - Bandra- Mankhurd) will further enhance the connectivity of Chembur with the western zone. Work has been awarded to the contractor but is lagging behind schedule. While the project is unlikely to be complete in our forecast horizon of five years, it will have a positive impact on prices during this period.

CASE Study: Superior selection

90

At present, Prabhadevi is an established residential market commanding an average price of `28,000/sq.ft. At an average of `12,000/sq.ft. Chembur residential property sells at a 57% discount. Based on our investment rationale discussed above, we forecast this discount to narrow down to 37% by 2017.

CASE Study: Superior selection

91

Type Area (sq.ft.)

Ticket Size

(` Mn.)

1 BHK 600-760 5.4 - 7.6

2 BHK 1000-1150 9.5 - 11.5

3 BHK 1350-1700 12.8 - 18.7

4 BHK 1600-1750 16 - 19.3

Project Developer No. of units

Launch

Date

Completion

Date

Views Dheeraj Group 308 May-10 Jun-14

Brizo Residency Red Brick 132 Dec-10 Feb-14

Mangal Moorti Mangal Moorti Developer 128 Jan-10 Dec-14

Akshay Paradise Akshay Corporation 70 Jun-11 Oct-14

Investment option: Select Residential Projects in the destination

Ticket size of investment

CASE Study: Superior selection

Thank You

MUMBAI PUNE GURGAON BANGALORE HYDERABAD CHENNAI KOLKATA

Knight Frank India Pvt. Ltd. 1st Floor, Paville House, Off Veer Savarkar Marg, Prabhadevi, Mumbai - 25 Tel 022 6745 0101 www.knightfrank.com