REAL ESTATE DELHI. Delhi NCR can be divided into the following zones:

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1 REAL ESTATE DELHI With a population of over 15 million, Delhi is one of the largest cities in the world. Delhi Metro has changed the face of the national capital. Metro route, having been extended beyond Delhi boundaries to places such as Faridabad, Gurgaon, Noida, and Ghaziabad, has made commuting easy in the National Capital Region (NCR) region. Delhi NCR can be divided into the following zones: North Delhi South Delhi West Delhi East Delhi Noida can be classified into Sector 15A, 29, 44, 50, 93, 75, 78, 129, 134, Pari Chowk & Greater Noida Gurgaon encompasses NH-8, MG Roa, Sohna Road, Golf Course Road, Golf Course Extension Road & New Gurgaon (Near Second Toll) Faridabad covers Sector, 12, 15, 20, Nehar Par Area & Mathura Road Ghaziabad encompasses Indirapuram, Vaishali, Kausambhi & Mohan Nagar The key factors that have helped Delhi become the No.1 position are the fastpaced improvements in the physical infrastructure of the city such as the metro network, modernization of the international airport, road widening projects and dedicated efforts to make the Ring Road, the central artery of the city, signal-free. The staging of the Commonwealth Games in New Delhi in the first half of October 2010 has led to a major real estate market upgrade. Residential property prices in the surrounding areas - which have benefited substantially from improved infrastructure and connectivity - have risen steadily for at least a year, at levels of 10-15% per annum (pa). The Games Village is a premium development in a prime location.

2 PROMINENT AREAS: The Central Business District (CBD) business locations in Delhi are Connaught Place and near-by areas, Secondary Business District (SBD) Nehru Place, Saket District Centre, and Jasola District Centre and Peripheral Business District (PBD) is mainly situated in Gurgaon and Noida region. DEFENCE COLONY: The location commands a premium status in terms of property prices as it is well connected with other parts of the city and has a mature F & B retail market. Defense Colony has witnessed a 36% appreciation in capital values over 2010 end. RESIDENTIAL SECTOR: The Metro has flattened the curve with property prices around stations that are at the peripheries of the city have considerably closed the gap with those at city centers. While this gap is still 35 per cent, prices along Dwarka and Rithala routes have risen significantly. Prices are highest within 500 meters of Metro routes. Proximity to the Metro has proved more beneficial for commercial properties. The Delhi Metro connects all major parts of the city:

3 Ghaziabad has successfully emerged as one of the most happening real estate markets in Delhi NCR. The NCR region has become home for many professionals because of the of the upcoming IT hub, Noida. In Master Plan 2021, Ghaziabad Development Authority has talked about providing a total of 2.6 lakh houses for a population of 23 lakhs. The city has witnessed exponential Residential real estate growth. It is widely believed that some of the best residences on the market in Delhi (NCR) and Mumbai today are more expensive than those in Dubai. Going by prices per sq ft, London is the most expensive at $8,000, followed by New York at $4,000, Hong Kong at $3,000, Delhi and Mumbai at $2,000 and Dubai just a little less than that. But with the surge in the bank rate and cash reserve ratio (CRR), as per the new credit policy, the interest on housing loans are all set to increase in the time of the slump. The increase in the interest rates on housing loans and other such lending apparatus may not bring a smile to consumers, at least for now. Taking a closer look at the residential sector in the real estate market in Delhi, the prices of residential properties are mainly driven by location. Lutyen s zone is a preferred posh locality among the affluent class. Residential properties in this area sell like hot cakes though at a breathtaking price. Aware of the worth of owning a house in this area, the residents prefer not to part with their residential asset. Thus, it is rare to find a property on sale in this area. As the property demand in this area is high with a limited supply, it is but natural for the prices to be exorbitantly high. Lutyen s zone thus houses top industrialists, politicians, bureaucrats and business tycoons having deep pockets. The prices in this area never see a downfall due to the elite neighborhood, historical significance of the location, well-developed infrastructure and civic facilities. Owning a home in Lutyen s zone earmarks high status in the society. (Replacing Lutyen s Zone with Race Course, Jor Bagh, Prithvi Raj Road & Lodhi Garden would be a better idea) According to the operational update by Unitech,82% of the bookings pertain to the Residential projects. The rental values of residential and commercial sector in the Central Business District of New Delhi appreciated by 4%over the previous quarter.

4 Developer Outlook: Among the developers, DLF s development volumes have stood at 1.9mn sq ft (down 28.8 per cent year-on-year and 47.8 per cent quarter-on-quarter) because of subdued new launches. DLF says the delay in getting approvals has slowed down the process of new launches. Yet it has launched over 5,000 square foot apartments in posh Greater Kailash II in New Delhi one of the city s posh addresses priced at an astonishing Rs. 10 crore (Rs.100 million) and more, which comes to over Rs20,000 a sq ft. Of these 60 under-construction flats, DLF has sold more than 25 to buyers through its strictly by invitation policy for luxury homes. Besides, DLF s The Magnolias, a 410-apartment complex on an 18-hole golf course, has caused quite a stir in the real state sector across India. An Upcoming High-rise, The Residency in Gurgaon, Delhi NCR:

5 RETAIL SPACE: By the 1st quarter of 2011 Delhi-NCR region is set to witness 3.03 mn.sq.ft of fresh retail space supply; however a staggering mn.sq.ft of total ready retail space would be available. During end of 2010 Delhi witnessed new mall supply of approximately 1.1 mn.sq.ft space in south Delhi region. Delhi continues to dominate the NCR s retail space, having the largest share in total upcoming supply. Most of the projects are located in West-North-North Western Southern & Eastern regions in Rohini Sector-10. The region is witnessing new developments like Ambience Mall, Pearl Omaxe Mall, D-Mall, Parsvnath Metro Mall, & Welcome mall. Retail development at the airport express line near new Terminal 3 at IGI airport is also expected by Noida will be the second largest contributor of new space after Delhi. Gurgaon is expected to witness approx 2.5 mn Sq.Ft of retail space. Ghaziabad and Faridabad is expected to witness approx 2.1 and 0.6 mn Sq.Ft respectively. Delhi-NCR currently holds million Sq.Ft of major operational malls space and are spread across Delhi, Noida, Gurgaon, Faridabad and Ghaziabad. Delhi was the foremost in coming up with organized retail space. Anchor tenants across Delhi and Gurgaon pay average rentals of about 51/Sq.Ft per month & 62/Sq.Ft per month respectively, while anchor tenants in Noida, Faridabad and Ghaziabad pay in the range of ` 47-51/Sq.Ft per month.

6 With an improvement in the retail market it is believed rental values across micro-markets shall witness upward trend. However rental values in the mall are not expected to witness any high rate of appreciation as huge supply in mall space is in pipeline close to mn Sq.Ft by the end of Majority of supply is coming up in locations like Noida, Ghaziabad and Gurgaon. Although leasing activity has picked up, the sizeable amount of vacant stocks in malls is the matter of worry and remains a major concern. NCR witnessed increase in transaction volumes. Prospective Tenants are not only looking for low rentals but also added advantages such as parking, metro connectivity and other infrastructure facilities. Also tenants are more focused on operational project which are more likely to be available in the 1st quarter of 2011.On infrastructure front the much awaited metro airport express line is likely to get operational for public by next quarter. Also Delhi metro started operation in Central Secretariat- Qutab Minar stretch connecting south Delhi area such as Jor Bagh, AIIMS, Green Park, Saket, and Vasant Kunj to Connaught Place (CBD) at one end and Gurgaon at the other end. Highstreets: Highstreets rentals across Delhi are much higher as compared to mall rentals. Connaught place due to its heritage and location advantage commands high rentals in the range of ` /Sq.Ft per month and about ` /Sq.Ft per month for the stores in outer circle. Delhi south region one of the key destination for shopping, commands high rental values as much as ` 1000/Sq.Ft per month. Other retail markets like Greater Kailash I & II commands rental in the range of ` /Sq.Ft per month and in sector 18 of Noida range between ` /Sq.Ft per month.

7 UPCOMING PROJECTS: Project Name Developer Location Krescent Homes Jaypee Group Noida Expressway The Krown Jaypee Group Greater Noida Palm Gardens Emaar MGF Sector-83, Gurgaon M3M Golf Estate M3M group Sector-65, Gurgaon Armstoria BPTP Limited Sector-102, Gurgaon The Residency Landmark Group Sector-103, Gurgaon Affordable Housing in NCR: Developers are giving tough competition in a recently discovered part of Noida called Noida Extension, which has boundaries adjoining with Noida and Greater Noida. Assotech, Supertech, Eros, Mahagun, Amrapali etc being premium builders have launched their projects in this area and are taking attention of the domestic and local clients. The cost is comparatively lower and affordable as it starts by Rs.2000 per sqft approximately and thereby offering a 2BHK Developers are also launching 1BHK s and Studio Apartments which are effectively starting from 10L and despite the low prices developers are offering discounts and products with bookings (LCD, Car etc.). Similarly, Gurgaon is now extended till second toll which is called Gurgaon 2, including Sec 82, 85, 91, 92 etc. Developers Giant DLF has been in the first ones to reach there followed by Emaar, Godrej, Orris, Vatika, Mapsko etc. This is another example of Affordable Housing available in NCR. The clients are attracting for the reason being close to the Manesar IT Hub in future. Rates have revised fantastically. Over last 1 year the growth has been close to 30% in some of the projects. Live Example is Orris Carnation, where the rates have been revised from Rs.2150 to Rs.3300 in last 12 months exactly. We have witnessed this in one of our cases where the client bought an apartment in this project in Jan Per Sqft and today the same project is offering 3-4 BHK Per Sqft. (with very few units available)

8 OUTLOOK: In 2010, the number of millionaires in India grew by 25 per cent, rated as the second fastest in the world after Singapore. Realizing that the market for super-luxury homes are on the rise, more and more developers are coming up with million-dollar homes, on an average costing over Rs.50 million, in formats ranging from condominiums, and suburban town houses to golf villas. In Gurgaon alone, there are a large number of such constructions on sale. Most have been booked in advance despite the slowdown and escalating prices. The Delhi Master Plan 2021 deviates from its predecessors to cater to a population of 23 million by 2021 Vision 2021, integral to the Master Plan for Delhi aims to create a world-class city through a purposeful transformation of the existing civic infrastructure. The government has outlined major proposals in Delhi Master Plan-2021 (MPD 2021) which include major infrastructural changes in the city. Some of the main proposals are extension of present commercial areas in Delhi, re-development in the form of new multistoried buildings and encouraging population shift to NCR. Foreign investors are also upbeat about Delhi for commercial real estate investment because the city is expanding. In addition, the government s plans to boost infrastructure is transforming Delhi into a hot real estate destination.