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2 TABLE OF CONTENTS 1. Indian Real Estate Market Introduction 2. Indian Real Estate Market Size By Revenue, FY 08-FY Government Regulations in Real Estate Market in India Draft Real Estate (Regulation and Development) Bill 2011 Land Acquisition, Rehabilitation and Resettlement Bill 2011 FDI in Real Estate 4. Property Prices in Metropolitan Cities in India, The Indian Residential Real Estate Market Introduction 5.1. The Indian Residential Real Estate Market Size, By Number of New Residential Units Completed, By Supply of New Residential Units Completed, Rental and Capital Values of Residential Units Delhi-NCR Bengaluru Mumbai Chennai Kolkata Pune 5.3. Indian Housing Price Index, Q Indian Residential Real Estate Market Future Projections, The Indian Commercial Real Estate Market Introduction 6.1. The Indian Commercial Real Estate Market Size, By Gross Floor Area of New Commercial units completed, By Absorption of New Commercial Units Completed,

3 6.2. Rental Values Of Commercial Units in Metropolitan Cities Delhi Bengaluru Mumbai Chennai Hyderabad Pune Kolkata 6.3. Indian Commercial Real Estate Market Future Projections, The Indian Retail Real Estate Market Introduction 7.1. The Indian Retail Real Estate Market Size, By Gross Floor Area of New Retail Units Completed, By Absorption of New Retail Units Completed, Rental Values of Major Malls in Metropolitan Cities, Delhi-NCR Mumbai Bengaluru Chennai Pune 7.3. Indian Retail Real Estate Market Future Projections, The Indian Hotel Real Estate Market Introduction 8.1. The Indian Hotel Real Estate Market Size, By Number of Available Rooms and Supply, The Indian Hotel Real Estate Market Segmentation By Major Cities,

4 Average Occupancy Rate in Hotel in Seven Metropolitan Cities By Type of Hotel, By Premium Hotel Rooms, Indian Hotel Real Estate Market Future Projections, By Market Size, By Major Cities, By Type of Hotel, Indian Real Estate Market SWOT Analysis 10. Indian Real Estate Market Trends and Developments 11. Market Share of Major Developers in the Indian Real Estate Market, FY 08-FY Indian Real Estate Market Future Outlook Cause and Effect Relationship between Dependent and Independent Factors prevailing in Indian Real Estate Market Indian Real Estate Market Future Projections, FY 13-FY Major Indian Real Estate Developers profiles DLF Ltd Company Overview Financial Performance, FY 07-FY Unitech Ltd Company Overview Financial Performance, FY 07-FY Omaxe Ltd Company Overview Financial Performance, FY 07-FY Jaypee Group 4

5 Company Overview Financial Performance, FY 07-FY India Bulls Real Estate Company Overview Financial Performance, FY 07-FY Indian Real Estate Macro-Economic and Industry Factors Rural and Urban Population (in million), Gross Domestic Product, FDI Inflows in Housing and Real Estate, FY 06-FY Foreign Tourist Arrivals in India, Outstanding Home Loans by Housing Finance Companies, FY 06- FY Consumer Expenditure on Housing and Housing fuels, FY 06-FY Indian Housing Price Index, FY 06-FY Appendix Market Definition Abbreviations Research Methodology Data Collection Methods Approach Variables (Dependent and Independent) Multi Factor Based Sensitivity Model Final Conclusion Disclaimer 5

6 LIST OF FIGURES Figure 1: Indian Real Estate Market Size on the Basis of Revenue by USD Million, FY 08- FY 12 Figure 2: Indian Residential Real Estate Market Size by Residential Units in Thousands and Gross Floor Area in Thousand Square Meter on the Basis of Completed Residential Units, Figure 3: Indian Residential Real Estate Market Projection by Residential Units in Thousands and by Gross Floor Area in Thousand Square Meter on the Basis of Completion of Residential Units, Figure 4: Indian Commercial Real Estate Market Size on the Basis of New Units Completed and Absorbed by Gross Floor Area in Thousand Square Meter, Figure 5: Indian Commercial Real Estate Projections on the Basis of Completion and Absorption by Gross Floor Area in Thousand Square meters of units completed, Figure 6: Market Share of Malls in India by Superior Grade, Average Grade and Poor Grade in Percentage (%), 2011 Figure 7: Market Share of Malls in India by Lease Model and Sale Model in Percentage (%), 2011 Figure 8: Indian Retail Real Estate Market Size on the Basis of New Units Completed and Absorbed by Gross Floor Area in Thousand Square Meter, Figure 9: Indian Retail Real Estate Projections on the Basis of Completion and Absorption of units completed, Figure 10: Indian Hotel Real Estate Market Size on the Basis of Availability of Hotel Rooms in Units and Hotel Room Space by Gross Floor Area in Thousand Square Meter, Figure 11: Percentage Contribution of Premium Hotel Rooms by Major Metropolitan Cities, 2011 Figure 12: Indian Hotel Real Estate Market Size Projections on the Basis of Availability of Hotel Rooms in Units and Hotel Room Space by Gross Floor Area in Thousand Square Meter, Figure 13: Indian Real Estate Market Size Projections on the Basis of Revenue by USD Million, FY 13-FY 17 6

7 Figure 14: DLF Total Revenue in USD Million, FY 07-FY 12 Figure 15: Unitech Total Revenue from Real Estate in USD Million, FY 07-FY 12 Figure 16: Omaxe Ltd Total Revenue from Real Estate Activities in USD Million, FY 07- FY 12 Figure 17: Jaypee Group Total Revenue from Real Estate Activities in USD Million, FY 07- FY 12 Figure 18: India Bulls Real Estate Total Revenue in USD Million, FY 07-FY 12 Figure 19: Rural and Urban Population in India, Figure 20: Gross Domestic Product at Current Prices in USD Million, Figure 21: FDI Inflows in Housing and Real Estate in USD Million, FY 06-FY 16 Figure 22: Foreign Tourist Arrivals in India in Million, Figure 23: Outstanding Home Loans by Housing Finance Companies in India in USD Million, FY 06-FY 16 Figure 24: Consumer Expenditure on Housing and Housing Fuels in India in USD Million, FY 06-FY 16 Figure 25: Indian Housing Price Index, FY 06-FY 16 7

8 LIST OF TABLES Table 1: Indian Real Estate Property Prices in Top Seven Metropolitan Cities, 2011 Table 2: Indian Residential Real Estate on the Basis on New Units Completed by Price Range in INR in Percentage(%), 2011 Table 3: Indian Residential Real Estate on the Basis on New Units Absorbed by Price Range in INR in Percentage(%), 2011 Table 4: Rental Values of Residential Units in Key Locations of Delhi-NCR in INR per square feet per month, 2010 Table 5: Capital Values of Residential Units Categorized by Apartments and Villas in Key Locations of Bengaluru in INR per square feet per month, 2011 Table 6: Capital values of Residential Units in Key Locations of Mumbai INR per square feet per month, 2010 Table 7: Capital Values of Residential Units by Apartments and Villas in Key Locations of Chennai in INR per square feet per month, 2010 Table 8: Housing Price index in Major Cities in India, Q 2012 Table 9: Key Office Lease Transactions in Bengaluru and Hyderabad in square feet, Q Table 10: Rental Values of Commercial Office in Delhi-NCR in INR per square feet per month, 2010 Table 11: Rental Values of Commercial Office by Grade A and Grade B in Bengaluru in INR per square feet per month, 2011 Table 12: Rental Values of Commercial Office in Mumbai in INR per square feet per month, 2010 Table 13: Rental Values of Commercial Office by Grade A and Grade B in Chennai in INR per square feet per month, 2011 Table 14: Lease Transaction of Office Space in Key Locations in Hyderabad, 2011 Table 15: Lease Transaction of Office Space in Key Locations in Pune, 2011 Table 16: Lease Transaction of Office Space in Key Locations in Kolkata, 2011 Table 17: Key Lease Transactions of Malls in Metro Cities in India,

9 Table 18: Rental values of Retail units in Key Locations of Delhi-NCR in INR per square feet per month, 2010 Table 19: Rental values of Retail Units in Key Locations of Mumbai in INR per square feet per month, 2010 Table 20: Rental Values of Retail Units in Key Locations of Bengaluru in INR per Square Feet per Month, 2011 Table 21: Rental Values of Retail Units in Key Locations of Chennai in INR per square feet per month, 2011 Table 22: Indian Hotel Real Estate Market on the Basis of Contribution by Top Seven Metropolitan Cities in India, Table 23: Indian Hotel Real Estate Market on the Basis of Availability of Hotel Rooms in Top Metropolitan cities in India, Table 24: Average Occupancy Rate in Hotels in the Top Seven Metropolitan Cities in Percentage (%), Table 25: Indian Hotel Real Estate Market on the Basis of Availability of Hotel Rooms By Category, Table 26 : Indian Hotel Real Estate Market on the Basis of Contribution of Available Hotel Rooms By Category in India by Percentage (%), Table 27: Number of Available Premium Hotel Rooms in Major Metropolitan Cities, Table 28: Indian Hotel Real Estate Market Projections by the Availability of Rooms in the Top Seven Metropolitan Cities in Percentage, Table 29: Indian Hotel Real Estate Market Projections by the Availability of Rooms in the Top Seven Metropolitan Cities in Units, Table 30: Indian Hotel Real Estate Market Projection on the Basis of Contribution of Available Rooms by Category, Table 31: Indian Hotel Real Estate Market Projection on the Basis of Availability of Hotel Rooms by Category, Table 32: Market Share of Major Real Estate Developers in India, FY 08- FY 12 9

10 Table 33: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Indian Real Estate Market Table 34: Unitech Total Area Launched in the Major Cities in India in Thousand Square Meters, FY 11 Table 35: Unitech Total Area Sold in the Major Cities in India in Thousand Square Meters, FY 11 Table 36: Correlation Matrix Table 37: Regression Matrix 10

11 2. INDIAN REAL ESTATE MARKET SIZE BY REVENUE, FY 08-FY 12 The real estate industry growth is dependent on the developments in the residential, commercial, retail and hotel sector. The country s real estate market has grown at a CAGR of 9.00% during FY 08-FY 12 and has reached USD ~ million in FY 12 Figure: Indian Real Estate Market Size on the Basis of Revenue by USD Million, FY 08- FY 12 80, , ,000.0 In USD million 50, , , , , FY'08 FY'09 FY'10 FY'11 FY'12 PROPERTY PRICES IN METROPOLITAN CITIES IN INDIA, 2011 It was observed that Mumbai has the most expensive real estate properties among the other metropolitan cities in India in 2011 ~ was the second most expensive city in terms of the property rates during the year Table: Indian Real Estate Property Prices in Top Seven Metropolitan Cities,

12 Top Seven Metropolitan Cities in India Mumbai South Mumbai (Grade A) South Mumbai (Grade B) Worli (Grade A) Bandra (W) Worli ( Grade B) Andheri (W) Central Mumbai (Parel, Sewri, Byculla etc) Goregaon Powai Borivali Mulund Thane Delhi-NCR Chanakyapuri Jor Bagh Greater Kailash I & II East Delhi (Mayur Vihar, Preet Vihar, IP extension) Green Park New Friends Colony Golf Links Friends Colony (W) Vasant Kunj Golf Course Road - Gurgaon Janakpuri Minimum INR per square feet Maximum INR per square feet 12

13 Rohini / Pitampura Dwarka Defence Colony DLF Phase 1-4 / Sushant Lok Noida Express Highway - Noida Golf Course Road / Sohna Road - Gurgaon Greater Noida Pune Deccan Boat Club Road Koregaon Park Aundh Sopan Baug / Uday Baug Kothrud Viman Nagar Wanorie Hadapsar Kondhwa - Undri Bengaluru MG Road Koramangala Indira Nagar Malleshwaram Basavangudi JP Nagar Bellary Road 13

14 Whitefield Hyderabad Jubilee Hills Banjara Hills Begumpet Secunderabad Madhapur Kukatpally Gachibowli Uppal Chennai Boat Club Poes Garden RA Puram Anna Nagar Ashok Nagar Egmore/Kilpauk Guindy Vadapalani Velachery- OMR Road Kolkata Ballygunge Alipore South of Park Street Salt Lake New Town Rajarhat Behala 14

15 THE INDIAN RESIDENTIAL REAL ESTATE MARKET SIZE, BY NUMBER OF NEW RESIDENTIAL UNITS COMPLETED, The top seven metropolitan cities of India witnessed the launch of ~ residential units in 2011 as compared to ~ units in the year 2010.an overwhelming ~ units were absorbed in Delhi- NCR dominated the supply chain adding an average of ~ residential units to the residential market in the residential launches across major cities fell by ~% to ~ units in 2Q2012 mainly attributed to... around ~% of the new units launched during the quarter catered to the mid segment as a result of... Mumbai witnessed the steep fall of ~% of the new residential launches followed by.. BY SUPPLY OF NEW RESIDENTIAL UNITS COMPLETED, The supply of residential properties dipped down to ~ thousand square meters in 2011 as compared to a supply of ~ thousand square meters in an increase in the supply of real estate properties has been predominant in the areas of with several residential and office development projects in the pipeline...however, the segment showed signs of recovery in 2010 leading to a rise in demand for housing units and increasing transaction volumes owing to Figure: Indian Residential Real Estate Market Size by Residential Units in Thousands and Gross Floor Area in Thousand Square Meter on the Basis of Completed Residential Units,

16 , ,000.0 Residentail Units (in 000s) , , , , ,000.0 GFA 000Sqm Residential Units(000s) Residential Space (GFA 000 Sqm) Note: The residential real estate statistics represent Top 7 Metro Cities such as Mumbai, Chennai, Kolkata, Delhi-NCR, Pane and Hyderabad It was observed that increased the stock of residential units during which the residential prices were under pressure. The absorption share in the price range of INR ~ and above has been improving since then increasing from ~ in the third quarter of 2010 to about ~ % in the first quarter of

17 RENTAL AND CAPITAL VALUES OF RESIDENTIAL UNITS The capital values on an average have appreciated by ~ across top cities in India in 4Q10, thus continuing a trend of price impetus from previous quarters. The residential average capital values in Mumbai and Chennai appreciated by about ~ in 4Q2010.It has been observed that the capital values of residential units in Bengaluru, Kolkata have appreciated by about ~% during 4Q2010. MUMBAI The residential market in Mumbai has remained silent in the last quarter of 2011 and fewer transactions were recorded during the quarter on account It was recorded that around ~ units were launched during 2011, down by ~% from ~ units launched in 2010 as developers.residential market in Mumbai faced a downfall during 2012 on account of around ~ residential units were sold in the Mumbai metropolitan region during 2011 Table: Capital values of Residential Units in Key Locations of Mumbai INR per square feet per month, 2010 Residential areas Central Mumbai Navi Mumbai Capital Values CHENNAI There have been limited developments in the city the capital values in most residential micro markets stabilized in the year 2009 The capital values have remained fairly stable with slight appreciation despite because of enormous supply in the market in 2010 The city continued to have a sustained demand in the year 2010 which witnessed the supply of Capital values have risen by around ~% during The residential market remained active in 4Q 2011 during which several project launches in the price range of INR ~ per square feet were observed The rental values for the premium residential segment remained stable.. 17

18 KOLKATA Kolkata s residential market has witnessed new project launches during 4Q2011 in locations such as Rajarhat in the price range of INR ~ per square feet. The demand for residential properties remained positive during the quarter and the capital values witnessed appreciation in the range of ~ % during the quarter. Rajarhat witnessed an average increase of~ % alone attributing to PUNE The launches of several premium residential projects priced in the range of INR ~ per square feet were observed during 4Q The capital values have remained stable in except in Nagar the values inclined by ~ % during the quarter. THE INDIAN COMMERCIAL REAL ESTATE MARKET INTRODUCTION THE INDIAN COMMERCIAL REAL ESTATE MARKET SIZE, BY GROSS FLOOR AREA OF NEW COMMERCIAL UNITS COMPLETED, The commercial segment has gone through an upswing in 2011 with an increase in but the first quarter of 2012 witnessed a slowdown. are looking forward to pre-lease office space in order to take advantage of favorable commercial terms and conditions proposed by developers... a significant demand for office spaces particularly in the cities such as Bengaluru, Delhi-NCR The Indian commercial real estate market has recorded a considerable growth in the supply of the commercial real estate properties over the years. The commercial real estate market supply has increased from ~ thousand square meter of GFA in 2005 to ~ thousand square meter of GFA in 2011, growing at a CAGR of 11.7%. This growth was majorly due to 18

19 Figure: Indian Commercial Real Estate Market Size on the Basis of New Units Completed and Absorbed by Gross Floor Area in Thousand Square Meter, GFA in 000 sqm 4, , , , , , , , New Completions Absorption Note: The commercial real estate statistics represent Top 7 Metro Cities such as Mumbai, Chennai, Kolkata, Delhi-NCR, Pune and Hyderabad RENTAL VALUES OF COMMERCIAL UNITS IN METROPOLITAN CITIES DELHI The CBD of New Delhi witnessed an infusion of ~ thousand square meters of supply in 1Q The absorption gained momentum as compared to the previous quarter and stood at approx ~ square meters The district of the city recorded a rental appreciation of ~ % in 1Q2012 over the previous quarter attributing to the low vacancy levels and Table: Rental Values of Commercial Office in Delhi-NCR in INR per square feet per month, 2010 Commercial Areas Delhi Gurgaon Noida Rental Values 19

20 THE INDIAN RETAIL REAL ESTATE MARKET INTRODUCTION THE INDIAN RETAIL REAL ESTATE MARKET SIZE, BY GROSS FLOOR AREA OF NEW RETAIL UNITS COMPLETED, the Indian retail real estate segment has registered a robust growth during with a sustained increase 2009 and 2010 however witnessed fewer launches of retail units due to that the new completion of malls increased significantly in 2011 as compared to 2010 due to. The segment amplified in 2011 during which the new launch of retail real estate properties increased to ~ thousand square meters as compared to ~ thousand square meter space launched in around ~ thousand square meters of retail space has been added across prime cities in India in 1H 2012 which is ~ % less than retail space added during the same period last year... Figure: Indian Retail Real Estate Market Size on the Basis of New Units Completed and Absorbed by Gross Floor Area in Thousand Square Meter, , ,200.0 GFA in 000 sqm 1, New Completions Absorption Note: The retail real estate statistics represent Top 7 Metro Cities such as Mumbai, Chennai, Kolkata, Delhi-NCR, Pune and Hyderabad 20

21 INDIAN RETAIL REAL ESTATE MARKET FUTURE PROJECTIONS, The retail real estate market supply is expected to grow at a CAGR of 17% over the period The retail real estate segment in India by the new completions of retail space is expected to grow at CAGR of 17% during This is due to an increasing young Figure: Indian Retail Real Estate Projections on the Basis of Completion and Absorption of units completed, , ,500.0 GFA in 000 sqm 2, , , New Completions Net Absorption Note: The retail real estate statistics represent Top 7 Metro Cities such as Mumbai, Chennai, Kolkata, Delhi-NCR, Pane and Hyderabad THE INDIAN HOTEL REAL ESTATE MARKET INTRODUCTION THE INDIAN HOTEL REAL ESTATE MARKET SIZE, BY NUMBER OF AVAILABLE ROOMS AND SUPPLY, The Indian hotel real estate market has grown at a CAGR of 2.5% during on account of the which have increased the demand for hotel rooms over the years thus leading to an 21

22 increased supply of hotel rooms across the country. The availability of hotel rooms in India increased from ~ in 2010 to ~ rooms in 2011 registering a growth of ~ % during the period. Figure: Indian Hotel Real Estate Market Size on the Basis of Availability of Hotel Rooms in Units and Hotel Room Space by Gross Floor Area in Thousand Square Meter, Number of Hotel Rooms(Units) 1,60,000 1,40,000 1,20,000 1,00,000 80,000 60,000 40,000 20, P 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 GFA 000s sqm Available Hotel Rooms Hotel Room Space THE INDIAN HOTEL REAL ESTATE MARKET SEGMENTATION BY MAJOR CITIES, It was recorded that Delhi and Mumbai were the cities which have been the largest contributor towards the hotel segment in 2011 with ~ % and ~ % share respectively Delhi has witnessed a surge in the availability of hotel rooms in 2011 possibly due to an upswing in the foreign tourist arrival in the city The availability of hotel rooms in Delhi has grown from ~ in 2005 to ~ in 2011 primarily on account of increased in the cities.. Despite this growth in supply, the Mumbai hotel market has maintained its occupancy and average rates witnessed a slight dip owing to most of the supply in the mid market segment during the year. 22

23 Kolkata s hotel market witnessed a ~ % increase in supply of rooms in Table: Indian Hotel Real Estate Market on the Basis of Contribution by Top Seven Metropolitan Cities in India, Cities P 2010P 2011P Mumbai Delhi Chennai Bengaluru Hyderabad Pune Kolkata Other cities Total AVERAGE OCCUPANCY RATE IN HOTEL IN SEVEN METROPOLITAN CITIES It was observed that the average occupancy rate was the highest in and Kolkata during The occupancy level inclined from ~ % in 2009 to~ % in The growth was at a slow pace because the hotel market in the city was. On the other hand, Delhi saw a decline in the occupancy level in due to the supply pressures. Table: Average Occupancy Rate in Hotels in the Top Seven Metropolitan Cities in Percentage (%), Average Occupancy Rate in Top Seven Cities (%) Mumbai Kolkata Chennai Delhi Bengaluru 23

24 Hyderabad Pune BY TYPE OF HOTEL, It was observed that the and.hotel rooms have occupied the dominant position in the Indian hotel market in Strong business and leisure travel have led to a rise in demand for premium segment hotels across the country. This dominance is due to an upsurge in the recent years those who prefer to stay in Another category of hotels such as the.have also showcased remarkable growth rate during the period certainly influenced by the...the demand for such kind of hotel is predominant in the areas such as Jaipur, Udaipur and.. Table: Indian Hotel Real Estate Market on the Basis of Contribution of Available Hotel Rooms By Category in India by Percentage (%), Category of Hotel Rooms P Three Star Five Star Deluxe Five Star Four Star Two Star Heritage Hotels One Star Apartment Hotels Time Share Resorts Others Total 24

25 Figure: Percentage Contribution of Premium Hotel Rooms by Major Metropolitan Cities, 2011 Delhi Mumbai Bangalore Pune Hyderabad Chennai Kolkata Other Cities MARKET SHARE OF MAJOR DEVELOPERS IN THE INDIAN REAL ESTATE MARKET, FY 08-FY 12 Indian real estate market is highly fragmented and competitive with about ~ registered and unregistered real estate offices DLF Ltd is the largest real estate developer in India with a market share of ~ % and total revenue of USD ~ million in FY 11. The company has maintained its leadership almost the leading developers in the real estate market have suffered due to the weak real estate property market conditions caused due to the global economic debacle. However, developers such as have managed to gain the market share in FY 11. Table: Market Share of Major Real Estate Developers in India, FY 08- FY 12 Major Players FY'08 FY'09 FY'10 FY'11 FY 12 DLF India Ltd. Unitech Ltd. 25

26 Omaxe Ltd. Jaypee Group Sobha Developers Ltd. India Bulls Real Estate Ansal API Ltd. Oberoi Realty Prestige Estate Projects Ltd. Parsvnath Developers Ltd. Puravankara Developers ltd. Brigade Group Godrej Properties INDIAN REAL ESTATE MARKET FUTURE OUTLOOK 2.1. INDIAN REAL ESTATE MARKET FUTURE PROJECTIONS, FY 13-FY 17 As the economy shows signs of decreasing GDP growth, the real estate industry faces real estate developers are reeling under high debt due to surging construction and Amidst these macro economic conditions Indian real estate across the major cities is expected to see a.performance. The industry revenue is expected to reach USD ~ million in FY 17 growing at a CAGR of 11.25% from FY 12- FY

27 Figure: Indian Real Estate Market Size Projections on the Basis of Revenue by USD Million, FY 13-FY 17 1,40, ,20,000.0 In USD Million 1,00, , , , , FY'13 FY'14 FY'15 FY'16 FY'17 DISCLAIMER No part of this manual or any material appearing may be reproduced, stored in or transmitted on any other Web site without written permission of AM Mindpower Solutions and any payments of a specified fee. Requests to republish any material may be sent to us. 27