REALTY DECODED Q1 FY’17 · Kalpataru Immensa have launched 2,300 & 1,200 units, respectively Total unit launches – Q1 FY’16 vs Q1 FY’17 12, 6 3 7 840 Ahmedabad Bengaluru Chennai

REALTY DECODED Q1 FY’17JULY 2016

REALTY DECODED Q1 FY’17Page 01

NEW LAUNCHES

INVENTORY SCENARIO

INSIGHTS

CONSUMER CALLING

PRICE TRENDS

POLICY DEVELOPMENTS AND KEY TRANSACTIONS

Structure

Page 02 REALTY DECODED Q1 FY’17

Key Insights And Outlook


Key InsightsSales saw a quarter-on-quarter increase of 8 per cent in Q1 FY’17, compared with a q-o-q decline of 3 per cent in Q4 FY’16. In absolute terms, sales across top-9 cities of India increased from 51,500 units in Q4 FY’16 to 55,550 units in Q1 FY’17. The sales volume was primarily driven by Bengaluru, Pune and Mumbai, which together accounted for 61 per cent of total sales across top-9 cities in Q1 FY’17

Mumbai contributed the most to sales, accounting for 23 per cent of total sales during both the current as well as the previous quarter; Bengaluru saw its share dropping from 23 per cent in Q4 FY’16 to 19 per cent in Q1 FY’17

Ahmedabad and Hyderabad in Q1 FY’17 reported their highest quarterly sales in the past 8 quarters. There was also a price increase in these cities – while Hyderabad saw the highest annual price appreciation of 8 per cent, Ahmedabad witnessed 7 per cent price growth

The Northern region made a strong comeback, with Noida in Q1, FY’17 reporting the highest sales in 4 quarters, and Gurgaon the highest in 7 quarters. Whether this trend will continue remains to be watched

The pattern of launches saw a reversal during the quarter. The number of launches across the top-9 cities rose by 14 per cent in Q1 FY’17 to ~ 41,000 units from ~ 36,000 units in Q4 FY’16. This could be attributed to the recent sops offered by the government for development of affordable housing; more than 50 per cent of the total launches were seen in the affordable segment

The pressure of inventory overhang eased during the quarter – from 38 months in Q4 FY’16 to 35 months in Q1 FY’17, with an overall reduction in unsold inventory. The inventory overhang has fallen only twice in a span of 13 quarters; the first such instance was in Q3 FY’16. This could indicate a bottom formation and the likelihood of further improvement in the coming quarters

The overall market is geared towards completion and delivery of projects. Average delivery of projects as a percentage of under-construction stock increased nearly 4 times to 9 per cent in Q1 FY’17. It has been more pronounced in theaffordable segment, which saw a 6-fold increase to 12 per cent in Q1 FY’17


OutlookThe stable performance of the Indian rupee against major global currencies and a reduced repo rate with controlled inflation are expected to favour the buyers further. These factors will increase affordability and boost purchasing power, which are critical to stimulating housing demand

The Union Government approved the recommendations of the 7th Pay Commission to increase the central government employees’ wages by 23.55 per cent, with effect from January 1, 2016. The move will increase income levels and is expected to give a big boost to the residential demand in Tier-I and -II cities

Britain’s decision to exit from the European Union (EU) has weakened the pound against the rupee. This is likely to impact Non-Resident Indians’ (NRIs’) near-term plans to invest in the Indian luxury residential sector. Also, many top Indian IT firms earn the bulk of their revenues from the EU. Their revenues might be hit if EU slows down following BREXIT. IT-dependent residential cities like Bengaluru, Chennai and Pune could face the turbulence

The subsequent quarters are expected to see better performance on sales, primarily driven by the upcoming festive season, offers, schemes and freebies given by developers to attract new buyers, coupled with home loan schemes by financial institutions

Notes: BSP is represented in Rs./sq.ft. Inventory overhang is represented in months

Residential Landscape: Top-9 cities as of Q1 FY’17

Q-o-Q (%)

Q-o-Q (%)

Q-o-Q (%)

Q-o-Q (%)

Q-o-Q (%)

Q-o-Q (%)

Q-o-Q (%)

Q-o-Q (%)

Q-o-Q (%)

GURGAON

MUMBAI NOIDA

HYDERABAD

BENGALURU CHENNAI

KOLKATA

PUNE

AHMEDABAD

Prices largely remained flat, barring positive traction seen in Hyderabad and Gurgaon.


Launches

Sales

BSP

InvetntoryOverhang

Launches

Sales

BSP

InvetntoryOverhang

Launches

Sales

BSP

InvetntoryOverhang

+726%

+61%

3,000 (+1%)

26

-35%

-13%

4,750 (+1%)

30

-10%

+10%

4,950 (+1%)

38

Launches

Sales

BSP

InvetntoryOverhang

Launches

Sales

BSP

InvetntoryOverhang

Launches

Sales

BSP

InvetntoryOverhang

+30%

+42%

5,500 (+3%)

52

+5%

+3%

3,900 (+3%)

28

-37%

-3%

3,900 (0%)

36

Launches

Sales

BSP

InvetntoryOverhang

Launches

Sales

BSP

InvetntoryOverhang

Launches

Sales

BSP

InvetntoryOverhang

+58%

+10%

8,200 (0%)

41

-48%

+20%

4,050 (-1%)

54

+58%

+7%

4,900 (0%)

22

Source: PropTiger DataLabs Jun’16

Key performance indicators have transitioned to positive zonein Q1 FY’17, Outlook largely looks stable


* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway), Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.

Notes:

Q1 FY’16 Q3 FY’16 Q4 FY’16 Q1 FY’17 Q2 FY’16

-31% 15% -14% 14% -27%

-13% 9% -4% 8% -14%

1% 0% 0% 1% 0%

13% -6% 9% -9% 14%

Residential Trends in top-9 cities*

Inventory Overhang

Price Trend

Sales

Launches

Strong/Marginal Decline Stable Strong/Marginal Increase//



Launches: Will The Momentum Increase?

Launches went up by 14% during the quarter; have largely remainedrange-bound in the past 4 quarters



Notes:

142,627

115,890 116,402

108,226

78,075 75,357 79,343

73,433

50,594

36,774 42,269 36,275 41,313

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Q1 FY'14

Q2 FY'14

Q3 FY'14

Q4 FY'14

Q1 FY'15

Q2 FY'15

Q3 FY'15

Q4 FY'15

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

# of units

-18%

-35%


Launches are expected to remain range-bound as developers proactively

align the supply to meet RERA stipulations

Total number of launches in top-9 cities*


Five of 9 Cities saw decrease in launches Y-o-Y


* Noida includes Greater Noida and Yamuna Expressway. ** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.Analysis includes apartments and villas across the regions.

Notes:

2,9

37

85

8

3,5

14

4,4

94

7,5

73

16,0

56

1,6

85

6,4

61

3,6

39

2,9

21

1,3

84

1,75

9

6,8

03

12,0

20

15,000

20,000

10,000

5,000

0

Q1 FY'16 Q1 FY'17

# of units


Aroma Realties Kesar City

Phase 2 & Shiv Infraspace

Serenity Space have launched

>400 units

Godrej Eternity has launched

>850 units

Developer Group Westwind Phase - 1 has launched > 550 units

SKA Greenarchhas launched

>900 units

XRBIA Ambihas launched >1,500 units

NK Enterprises Neel Empire Phase – 1 & Kalpataru Immensa

have launched 2,300 & 1,200 units,

respectively

Total unit launches – Q1 FY’16 vs Q1 FY’17

12,6

37

4,3

12

84

0

Ahmedabad Bengaluru Chennai Hyderabad Kolkata Noida* Pune Mumbai** Gurgaon^

2,0

14


Affordable segment accounted for 53% of total launches; supply looking to tap benefits of recent government schemes


22% 23% 22% 20% 12%

20% 22% 23% 20% 16% 14% 18% 20%

41% 41% 40% 39% 42%

36% 30%35%

33% 41%32% 27%

33%

15% 15% 16% 19% 20% 19% 23% 16% 25% 21%

17% 24% 21%

7% 8% 7% 7% 8% 10% 8% 8%

8% 10%

12% 11%

8%

15% 13% 15% 15% 18% 15% 17% 18% 14% 12% 25% 20% 18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 FY'14

Q2FY'14

Q3 FY'14

Q4 FY'14

Q1 FY'15

Q2 FY'15

Q3 FY'15

Q4 FY'15

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

< Rs.25 Lakhs Rs.25 -50 Lakhs Rs.50-75 Lakhs Rs.75 -100 Lakhs > Rs.1 Crore

% of units

• 100% deduction for profits

• Exemption from service tax

• Excise duty exemption onready-mix concrete


Notes:

Q-o-Q budget-wise unit launches in top-9* cities

Incentives to developers in the affordable segment -



Consumer & Demand : Uptick In Sales Activity

Sales increased by 8%; have been hovering at an average of ~53k per quarter for the past 5 quarters



Notes:

Sales trend in top-9 cities*

134,190

117,680 114,302 107,013

92,725

80,366 76,739

65,789

57,245 48,976

53,457 51,550 55,500

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Q1 FY'14

Q2 FY'14

Q3 FY'14

Q4 FY'14

Q1 FY'15

Q2 FY'15

Q3 FY'15

Q4 FY'15

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

-38%

-3%

Quarterly sales likely to improve in the subsequent

quarters on account of festive season

# of units


Interest in new projects relatively low when compared to projects which are seeing on-ground development



Notes:

Sales in top-9* cities: New launches vs old projects

70,204

53,311 50,140

47,351

37,413

30,250 28,894 25,832

20,978

14,323 17,655 16,676 17,529

63,922

64,326 64,155 59,662

55,312 50,116

47,845

39,957 36,267 34,653 35,802 34,874

37,971

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Q1 FY'14

Q2 FY'14

Q3 FY'14

Q4 FY'14

Q1 FY'15

Q2 FY'15

Q3 FY'15

Q4 FY'15

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

# of units

9% increase compared

to Q4 FY’16

5% increase compared toQ4 FY’16

New Launches (Launch date ≤ 6 months) Old Projects ( Launch date > 6 months)


Ahmedabad, Gurgaon and Noida have witnessed the highestincrease in sales over the previous quarter


* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.Analysis includes apartments and villas across the regions.

Notes:

Q-o-Q Sales Index (base: Q1 FY’16)

142

101 103

90 89 85

94

71

73

104

92

110

130 135

85

97 90

87 86

84

79 77

67

81

100

89

95 102

50

60

70

80

90

100

110

120

130

140

150

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

Ahmedabad Bengaluru Chennai Gurgaon^ Hyderabad Kolkata Mumbai** Noida* Pune

Ind

ex v

alu

e (

Ba

se: Q

1 F

Y’1

6=10

0)


Bengaluru, Mumbai and Pune contributed nearly 60% to the total absorption in Q1 FY’17


* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.Analysis includes apartments and villas across the regions.

Notes:

City-wise split of total absorption in Q1 FY’17

Inner Circle - Q4 FY’16 Outer Circle – Q1 FY’17

5%

23%

7%

6%

8%

19%

7%

19%

7%

19%

Ahmedabad

Bengaluru

Chennai

Gurgaon

Hyderabad

Kolkata

Mumbai

Noida

Pune

Bengaluru’s share in total absorption saw a

drop of 4% over the previous quarter;

Ahmedabad saw an increase of 2%

9%

23%

22%

5%

6%6%

5%4%


Affordable segment continued to command a dominant share in total sales


1: Affordable segment: Units within < Rs.50 lakh budget2: Mid-segment: Units within Rs.50-75 lakh budget3: Luxury segment: Units in > Rs.75 lakh budgetAnalysis includes apartments and villas across the regions

Notes:

Sales in top-9* cities by budget segment

23%

22%

5%

6%6%

5%4%58% 59% 59% 59% 57% 56% 56% 56% 52% 52% 52% 52% 52%

18% 18% 18% 18% 19% 20% 21% 19% 23% 21% 19% 20% 21%

24% 23% 23% 23% 24% 24% 23% 25% 25% 27% 29% 28% 27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 FY'14

Q2 FY'14

Q3 FY'14

Q4 FY'14

Q1 FY'15

Q2 FY'15

Q3 FY'15

Q4 FY'15

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

% of sales

Affordable Segment Mid Segment Luxury Segment 321


Barring in Hyderabad and Gurgaon, around 50% of the demand was for properties in the affordable segment


* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.^^ Based on survey of enquiries received by PropTIger.com.

Notes:

Budget-wise real estate end-user demand^^ – Q1 FY’17

22%

6%6%

33%

3% 13%

1% 2% 4% 7% 4% 7%

44%

43%

53%

11%

29%

44% 50%

48% 44%

15%

33%

17%

25%

39%

26% 12%

37% 37%

3%

12% 10%

29%

15% 19%

9%

8% 8% 5%

9% 7%

34%

15% 7%

22%

3% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

> Rs.1 Crore

Rs.75 -100 Lakhs

Rs.50-75 Lakhs

Rs.25 -50 Lakhs

< Rs.25 Lakhs

% of demand



Inventory: Reading Between The Lines

Inventory overhang eased due to an uptick in sales and stable supply


Q-o-Q inventory overhang in top-9* cities

22%

6%6%


Notes:

14 16 17

18 20

23 25

29

33

37 35

38

35

0

5

10

15

20

25

30

35

Q1 FY'14

Q2 FY'14

Q3 FY'14

Q4 FY'14

Q1 FY'15

Q2 FY'15

Q3 FY'15

Q4 FY'15

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

# of months

40


Ahmedabad shows promising signs; both inventory overhang and age of unsold inventory are in a healthy zone


Age of unsold inventory vs inventory overhang in top-9* cities (June’16)

22%

6%6%

* Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway), Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.Analysis includes apartments and villas across the regions.Figures have been rounded off to the nearest hundred.

Notes:

Ahmedabad 32,800

Bengaluru 104,100

Chennai48,200

Gurgaon 50,300

Hyderabad 31,500

Kolkata 33,100

Mumbai 173,900

Noida 94,100

Pune 79,400

45

40

35

30

25

20

15

15 20 25 30 35 40 45 50 55 60

Age of unsold inventory (months)

Inventory overhang (months)


Noida has more than 50% of unsold inventory aged over 3 years


Age of unsold inventory in top-9 cities (June’16)

22%

6%6%

* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.Analysis includes apartments and villas across the regions

Notes:

38% 30% 26% 22%

33% 26% 27%

10%

33%

20% 26%

21%

16%

16% 30% 21%

18%

29%

18% 23%

18% 31%

17%

20%

18%

21%

21%

24% 21%

35% 31% 34% 24%

34%

51%

17%

100%

90%

80%

70%

60%

50%

40%

30%

40%

30%

20%

10%

0%

Ahmedabad Bengaluru Chennai Gurgaon ̂ Hyderabad Kolkata Mumbai** Noida* Pune

> 3 Yrs

2 to 3 Yrs

1 to 2 Yrs

≤ 1 Yr

% of inventory


Around 40% of unsold inventory in Mumbai, Hyderabad and Gurgaon continue to be in the luxury segment


Budget breakup of unsold inventory (June’16)

22%

6%6%

* Noida includes Greater Noida and Yamuna Expressway.** Mumbai includes Navi Mumbai and Thane.^ Gurgaon includes Bhiwadi, Dharuhera and Sohna.Analysis includes apartments and villas across the regions

Notes:

> Rs.1 Crore

Rs.75 -100 Lakhs

Rs.50-75 Lakhs

Rs.25-50 Lakhs

< Rs.25 Lakhs

100%

90%

80%

70%

60%

50%

40%

30%

40%

30%

20%

10%

0%

Ahmedabad Bengaluru Chennai Gurgaon Hyderabad Kolkata Mumbai** Noida* Pune

% of inventory

19%

14%

29%

32%

6%

14%

10%

22%

43%

11%

30%

9%

14%

28%

19%

24%

15%

23%

33%

5%

8%

7%

17%

45%

23%

32%

9%

12%

25%

22%

8%

8%

20%

54%

10%20%

42%

22%

7%

9%

33%

33%

12%

5%

17%


The focus on completion is at the core, delivery increased nearly four times when compared to Q1 FY’14


Completions as % of inventory across segments in top-9 cities

22%

6%6%

1: Affordable segment: Units within < Rs.50 lakh budget2: Mid-segment: Units within Rs.50-75 lakh budget3: Luxury segment: Units in > Rs.75 lakh budget Analysis includes apartments and villas across the regions

Notes:

* Inventory includes only under-construction units

2% 3%

3% 4% 4%

5% 5%

6% 7%

9%

10%

12%

3% 3%

3% 3% 4%

4% 5%

6%

7%

8%

9%

11%

12%

3% 3%

5%

6%

7%

8% 9%

2% 2% 3%

3% 3% 3%

4% 4%

5% 6%

7%

8%

9%

1%

3%

5%

7%

9%

11%

13%

Q1 FY'14

Q2 FY'14

Q3 FY'14

Q4 FY'14

Q1 FY'15

Q2 FY'15

Q3 FY'15

Q4 FY'15

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

Affordable Segment1 Mid Segment2 Luxury Segment3 Overall

Completions as % of inventory



Pricing: Largely Range-bound


Hyderabad continued its price momentum, with 8% annual growth; Ahmedabad followed with 7%

Weighted average^^ BSP (Rs./sq.ft.) of apartment units as at the end of quarter

City Q1 FY’16 Q1 FY’17 Price Change

(Y-o-Y)

Ahmedabad 2,784 2,966 7%

Bengaluru 4,603 4,754 3%

Chennai 4,810 4,954 3%

Gurgaon^ 5,610 5,464 -3%

Hyderabad 3,589 3,890 8%

Kolkata 3,951 3,903 -1%

Mumbai** 8,081 8,230 2%

Noida* 4,171 4,046 -3%

Pune 4,932 4,897 -1%

Notes: ^^ Price weighted on number of units supply in respective projects in a city. * Noida includes Greater Noida and Yamuna Expressway. ** Mumbai includes Navi Mumbai and Thane. ^ Gurgaon includes Bhiwadi, Dharuhera and Sohna. Analysis includes apartments across the regions. Source: PropTiger DataLabs Jun’16

Notes: * Top 9 Cities are Mumbai (including Navi Mumbai & Thane), Pune, Noida (including Greater Noida & Yamuna Expressway), Gurgaon (including Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad. Analysis includes apartments and villas across the regions.


Hyderabad and Bengaluru saw their highest price increase since Q1 FY’14; Gurgaon and Noida gave negative returns

100

97 97 97

99

99 100

101 101 102

106 106

102 104

105 105 107

108 110

111 112 113

113 114

103 104 103 103

104

106

99 98 98 98 97 97 98 97

93 95

103 104

107

108 109 109 112

115 118

98 98 101 101

102 102 100

100

104 105 105 105 105

107 107 107

99 98 99 98

97

96 96

102

106 106 106 106

105 105 105

90

95

100

105

110

115

120

Q1 FY'14

Q2 FY'14

Q3 FY'14

Q4 FY'14

Q1 FY'15

Q2 FY'15

Q3 FY'15

Q4 FY'15

Q1 FY'16

Q2 FY'16

Q3 FY'16

Q4 FY'16

Q1 FY'17

Ind

ex

valu

e (B

ase

: Q1

FY

’14

=10

0)

Weighted average price index of residential units in top -9* cities

Ahmedabad Bengaluru Chennai Gurgaon Hyderabad Kolkata Mumbai Noida Pune



Prices remained range-bound in the luxury and mid segments, appreciated in the affordable segment

Q-o

-Q P

rice

Ch

an

ge

(%

)

A�ordable Segment1 Mid Segment2 Luxury Segment3

0%

to

1%

1%

to

2%

A

bo

ve 2

%

Mumbai South (1%)

Dwarka Expressway, Gurgaon

Sohna, Gurgaon (4%)

(4%) Hyderabad South (4%)

Mysore Road, Bengaluru (3%)

Gandhinagar, Ahmedabad(2%)

Hyderabad East

Pune East (1%)Dadri Road, Noida (1%) Ahmedabad Central (1%)

Beyond Panvel, Mumbai (1%)(1%)

Nagar Rd., Pune (1%)Golf Course Extn Road, Gurgaon

(1%)

Bengaluru East (1%)OMR, Chennai

(1%)

Hyderabad West (3%)

Notes: 1: Affordable Segment : Units within < 50 Lakhs budget range. 2: Mid Segment : Units within 50-75 Lakhs budget range. 3: Luxury Segment : Units in > 75 Lakhs budget range.

Price trend map for prominent suburbs for Q1 FY’17

Whitefield (1%)Bengaluru North (1%)

ORR West, Hyderabad Bengaluru Central (1%)

Worli-Andheri,Mumbai (1%)

EM Bypass, Kolkata (1%)

(1%)



Policy Developments & Key Transactions


Major policy developments during the quarter

National Haryana Karnataka Maharashtra

Seventh Pay Commission to boost the Indian Real Estate Sector • Rs.1.02 Lakh Crore of additional income will come into the hands of

Central Government employees and pensioners. This is likely to encourage investment in residential real estate

RBI cut repo rate by 25 bps • The first repo rate reduction of 2016 took place, bringing the rate to

the level of 6.5%, the lowest in 6 years

SEBI o ered relaxations to its norms for REITs • SPVs no more restricted to invest in holding assets of other SPVs • REITs allowed to have up to five sponsors, against the current norm

of three

Haryana mandated solar power plants to promote green energy • The Haryana Government is promoting rooftop solar power plants by

providing various incentives, including industrial status, exemption from change of land use approval and cess, etc.

Haryana will develop area along Kundli -Manesar -Palwal Expressway • The Haryana Government has decided to develop industrial, commercial

and service sectors on both sides of the recently opened 53 -km stretch of Palwal -Manesar Expressway

Gurgaon circle rates were cut by 15% to boost the sluggish real estate market

Maharashtra Government hiked the Ready Reckoner rates • Rates for stamp duty and project cost have been increased by 7%

for Mumbai, 4% for Navi Mumbai and 6% for Pune

Municipal Corp. of Greater Mumbai revised draft DP to hike FSI • The revised draft development plan recommended a hike in the FSI

to up to 2 from the present 1.33 for residential developments in the island city, and proposed an FSI of 4 for affordable housing

MMRDA agreed to construct apartments on plots reserved for commercial use in BKC

BBMP partially rolled back hike in property tax • BBMP capped the property tax increase at 20% for

residential properties and 25% for non -residential properties in Bengaluru

Government of Karnataka cleared land hurdles to boost infrastructure projects • The Government of Karnataka has decided to

provide the Rehabilitation and Resettlement (R&R) exemption benefits to infrastructure projects in sectors such as road, railways, airport and power etc., that were stuck due to land acquisition issues



Major policy developments during the quarter

Tamil Nadu Andhra Pradesh Other States Uttar Pradesh

No approval required for sewage treatment plant in Chennai for small projects • Approval not required for Sewerage Treatment

Plant design for complexes with 50 dwelling units in areas without a sewage network

AP Government approved G+11 buildings in capital zone • The government decided to allow a maximum of

12 floors (G+11) in the residential zone. However, for high-rise buildings, a developer must have a minimum of 2,000 sq.mtr. of land (1 acre) in his possession

FAR along the Metro corridors in Greater Noida increased • The Uttar Pradesh Government approved increase in the FAR by

0.5 within a 1,000-metre radius of the Metro corridors in Greater Noida

Lucknow Development Authority to implement 1% labour cess • The cess is to be levied on developers at the time of map approval

on all projects whose construction cost exceeds Rs.10 Lakh

Uttarakhand: Land rates to be reduced • The Uttarakhand Government has decided to reduce the land circle

rates in urban and semi -urban areas by around 50%

Bhubaneshwar: Nod to electronic park in Bhubaneshwar • The Central Government approved the proposal of setting up an

Electronic Park on the outskirts of the city. It will house over 100 electronic manufacturing units

Jharkhand: To construct 1.7 lakh units under Prime Minister housing scheme • The Jharkhand Government to construct 172,588 dwelling units

under the Prime Minister housing scheme in rural areas in 2016-17

Centre approved the Dasna -Meerut Stretch • The Central Government has given clearance to NHAI for

construction of the Dasna -Meerut six-lane connector under the Delhi-Meerut Expressway



Key funding transactions during the quarterPuravankara Projects will invest Rs. 480 Crore to develop a 20-acre residential project in Mundhwa, Pune

Mahaveer Group has raised Rs. 120 Crore from Xander Finance to complete a 122-acre plotted development in Jigani, Bengaluru

Kohlberg Kravis Roberts (KKR) will invest Rs. 300 Crore in two residential projects of Puranik Builders in Pune

BCC Infrastructures raised Rs. 250 Crore from ECL Finance to develop its 58-acre township project Bharat City in Ghaziabad

Altico Capital invested Rs. 130 Crore in two residential projects. It invested Rs. 50 Crore in Lotus Greens Group’s resi-dential project in Noida and Rs. 80 Crore in Shree Sai Group’s residential project in DN Nagar, Mumbai

Mantri Developers raised Rs. 145 Crore from KKR for an ongoing luxury residential project in Bengaluru

Piramal Fund Management invested Rs. 110 Crore in 3 residential projects through an SPV in Habitat Ventures

Piramal Fund Management invested Rs. 425 Crore in an ongoing residential project of Lodha Group in Mumbai



Key funding transactions during the quarterASK Property Investment Advisors got an exit of Rs. 270 Crore from ATS Infrastructures Gurgaon project

Godrej Properties, in partnership with AR Landcraft LLP, forayed into Greater Noida to develop a 100-acre residential project

Realty firm M3M India raised Rs. 1,250 Crore from Indiabulls Housing Finance to acquire a land parcel of 185 acres in Gurgaon and also to repay its existing loans

Kanakia Group acquired a land parcel of 2.5 acres worth Rs. 125 Crores from Windsor Realty in Kanjurmarg, Mumbai

PE fund of Goldman Sachs is investing $250 million in Essel Highways, the infrastructure arm of Essel Group

ICICI Prudential Asset Management Co. has invested a sum of Rs. 150 Crore in realty firm Signature Global for the completion of its affordable housing projects


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REALTY DECODED Q1 FY’17 · Kalpataru Immensa have launched 2,300 & 1,200 units, respectively Total unit launches – Q1 FY’16 vs Q1 FY’17 12, 6 3 7 840 Ahmedabad Bengaluru Chennai