INDIAN REALESTATE MARKET OVERVIEW

2013-14

INDIA – AT A GLANCE

Capital : New DelhiStates : 28 States and 7 U.T.Area : 3.28 million Sq. KmCoastline : 7,516 kmPopulation : 1.27 Billion (aprox.)

Major Cities : Delhi, Mumbai, Chennai, Kolkata, Banglore

Political Situation

• Presently India is passing through uncertainty in Political stability.

• General Elections are in way. • To have stable Government is the need of

hour.

Major Policy Changes

• In 2013, Land Acquisition Bill was amended, now, in case of compulsory acquisition of land, the land owner will get 4x of market rate in rural areas and 2x in urban area.

• Govt. also restricted Indian residents to Purchase the property abroad, in individual capacity.

Major Policy Changes- Contd.

• Real Estate Bill is in the pipe line. • Changes in Companies Act, where Sale of

Companies, is made slightly tight and regulated.

• India REIT’s Act is also in advance stage of approval, and expected to be in acted by end this year.

ECONOMICBAROMETER

Bombay Stock Exchange

Government Bond Yield Chart

Currency (INR) vs $ (USD)

GDP Growth Rate

Interest Rate

Statutory Liquidity and Cash Reserve Ratio Trends

Repo & Reverse Repo Rates

Comparable BSE SENSEX of Major Real Estate Companies in India

Comparable BSE Sensex of Major Banks in India

FDI in Real Estate

• FDI in India in real estate sector has reduce drastically from $ 2.0b in 2009 to only $200m in 2013 despite low exchange rate.

• Investments made during 2006-2009 was about $20b, but only $ 8b could be exited by now.

REAL ESTATE MARKETININDIA

Delhi NCR

Mumbai

Bengaluru

Chennai

Kolkata

Delhi NCR Real Estate Market

Delhi

Capital Value Trends – Residential Market

Demand / Supply of Residential units in Delhi NCR

Office Space Market in Delhi NCR

Office Space Market in Delhi NCR

Commercial/Office Space in DELHI NCR

Delhi Real Estate Market

Commercial Market

•In Delhi NCR commercial space absorption increased by 22% as compared to last year, 70% of the space was leased in Gurgaon, 23% in NOIDA and the remaining 7% in Delhi. IT/ITeS companies were the major occupiers, contributing 50% of the total absorption, followed by Engineering and BFSI, together accounting for 25% of the total absorption.

•6.44 MN SF total new office inventory space added in 2013, only 12% was located in Delhi and the remainder was evenly split between peripheral micro markets of NOIDA and Gurgaon. The current overall vacancy is 19%, which is marginally higher than that recorded at the same time in 2012 (18.5%).

Mumbai

Mumbai Real Estate Market

Capital Value Trends Residential Market

Office Space Market in Mumbai

Office Space Market in Mumbai

Office Space Market in Mumbai

Top 10 transactions of the year

Office Space Market in Mumbai

• Despite the uncertain economic conditions, absorption of office spaces in Mumbai rose by 4.4% y/y to 7 m sft in 2013, as against the 6.7m sft in 2012. As a result, vacancy fell to 22.9% in 2013 from 24% in 2012. Nearly 7.5 m sft of new supply was added to Mumbai’s office stock in 2013 - an increase of 8.8% y/y compared to the 18% growth in stock in 2012. The total current office stock in Mumbai stands at 91 million square feet.

• During (2004-13) period, office stock in Mumbai has risen by more than five times, which would naturally lower incremental growth.

• Towards the mid 2013, growth in stock of office space in Mumbai was still the fourth-highest among the major cities of the world.

Kolkata

Kolkata Real Estate Market

Capital Value Trends Residential Market

Office Space Market- Kolkota

Vaca

ncy

Rat

e

Office Space Market in Kolkata

Office Space Market in Kolkata

Kolkata Real Estate Market

Commercial Market :

• About 0.5 mn sqft of new Grade A office supply was added to the city’s office inventory. Most of this new supply was located in the PBD micro-market such asSector - 5 Salt lake and Sonarpur.

• Capital values remained stable during the year with the exception of New Town –Rajarhat, which recorded a decline of 12% in capital values YoY.

Due to poor uptake of commercial stock, rental values declined in the range of 7 -10% YoY in micro-markets like Ballygunge, Circular Road and Sector-5, however other micro-markets remained stable.

Chennai

Chennai Real Estate Market

Capital Value TrendsResidential Market

Residential Market

Chennai Real Estate Market

Commercial Market Chennai

Chennai - Top 10 transactions of the year

Chennai Real Estate Market

Commercial Market

• Chennai office market witnessed a moderate demand in H1-2013),characterized by a fair increment in rental values since H1 2012. While theinitial months of H1 2013 witnessed a restrained take-up of office space, itgained momentum during the H-2 thereby bringing the total absorptionto approximately 1.7 m sqft, but still lower than 2012 as no surpriseand reveals the cautiousness in the market.

Bangalore

Bangalore Real Estate Market

Capital Value TrendsResidential Market

Bangalore Residential Market

Office Space Market in Bangalore

Bangalore Real Estate Market

House Price Indices of Major Cities

NHB Residex

Stabilization of Government.

Decision on Major Policies directly linked with Real Estate Market

- Land Acquisition Bill- Real Estate Bill- Relaxation on FDI Rules, (mainly on size of the

project and lock in period. - Approval REIT’s policy.- License to New Banks.

Challenges Ahead