All India Real Estate Presentation

INDIA July – December 2015

Across Mumbai, NCR, Pune, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad

2015 ENDS WITH

THE LOWEST NEW LAUNCHES AND

SALES VOLUME SINCE 2010

RESIDENTIAL

480,4

24

466,4

22

458,2

28

419,4

39

309,7

30

244,9

44

361,4

83

368,5

68

359,5

48

329

,63

0

274,1

09

263,7

20

-

100,000

200,000

300,000

400,000

500,000

600,000

2010 2011 2012 2013 2014 2015

No

. o

f u

nit

s

Launches Absorption

NCR, MUMBAI AND BENGALURU WITNESS

SHARPEST FALL IN LAUNCHES

ANNUAL LAUNCHES & SALES TREND


In h2 2015, SALES VOLUME held

steady to THE previous year’s

level, but NEW LAUNCHES STILL

LAG BEHIND


268,3

09

197,2

23

221,9

23

187

,19

9

150

,47

1

131,4

45

19

9,8

10

16

7,8

36

18

6,7

71

13

4,1

66

13

8,1

65

14

2,6

71

-

50,000

100,000

150,000

200,000

250,000

300,000

H2 2010 H2 2011 H2 2012 H2 2013 H2 2014 H2 2015

No

. o

f u

nit

s

Launches Absorption

NEW LAUNCHES FALL BY 13% y-o-y

from 1,50,471 to 1,31,445 units


HALF-YEARLY LAUNCHES & SALES TREND

-13%

Supply pressure IS Easing;

UNWINDING OF UNSOLD

INVENTORY HAPPENING

AT A FAST PACE


644,345

691,300

714,577 714,972

710,340

691,591

600,000

620,000

640,000

660,000

680,000

700,000

720,000

740,000

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015

No

. o

f u

nit

s

Unsold inventory comes back to

2013 level


UNSOLD INVENTORY

SHARP RISE IN QUARTERS TO SELL

UNSOLD INVENTORY ARRESTED


QUARTERS TO SELL UNSOLD INVENTORY TREND

6

8

10

12

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015

QT

S

Sharp fall in price growth

arrested; prices growing at

a steady 3% per annum rate


Growth down from 9% to 3% in the

last 36 months

0%

2%

4%

6%

8%

10%

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015

Pri

ce g

row

th


PRICE GROWTH


Home buyers avoiding

projects in initial stages of

construction; low level of

confidence in project

delivery


Confidence in NCR market falls

the most; but Mumbai gains

31%

50%

35%

41%

34%

29%

39%

33%

38%

34%

39%

35%

26%

20% 22%

24%

0%

10%

20%

30%

40%

50%

60%

Mumbai NCR Bengaluru Pune Chennai Hyderabad Kolkata Ahmedabad

% o

f S

ale

s

2013 2015

SALES TREND IN PROJECTS WHICH ARE IN THE INITIAL

STAGES OF CONSTRUCTION


PUNE CONTINUES TO BE THE BEST

MARKET IN INDIA; NCR the worst

QTS VS. AGE OF INVENTORY ACROSS CITIES

Mumbai

NCR

Bengaluru

Pune

Chennai

Hyderabad

Kolkata

Ahmedabad

5

7

9

11

13

15

17

5 7 9 11 13 15 17 19

Age o

f unsold

invento

ry in q

uart

ers

QTS

Across Mumbai, NCR, Pune, Bengaluru, Chennai, Hyderabad

Demand outstrips supply for

the 2nd straight year;

2015 closes at the highest

levels since 2011

office

43.6

48.3

43.1

36.3

34.8

35.5

37

.0

41

.2

32

.2

33

.6

38.3

40

.8

0

10

20

30

40

50

60

2010 2011 2012 2013 2014 2015

mn

sq

ft

New Completions Absorption

While absorption increased by 7% in

2015, new completions grew by just 2%

ANNUAL TREND OF NEW COMPLETIONS AND ABSORPTION


Vacancy levels are at a

record 8-year low


Vacancy levels fall to 15.8% in 2015

from their 2012 peak of 21%

ANNUAL VACANCY TREND

17%

21%

15.8%

14%

16%

18%

20%

22%

2008 2009 2010 2011 2012 2013 2014 2015


H2 2015 WITNESSES HIGHEST

HALF-YEARLY DEMAND FOR

OFFICE SPACE since 2012


BUT NEW COMPLETIONS STILL BELOW

THEIR H2 2012 PEAK LEVELS

NEW COMPLETIONS AND ABSORPTION IN H2


23.1

19.2

18.5

19.7

14.7

15.2

20.4

22.5

0

5

10

15

20

25

30

H2 2012 H2 2013 H2 2014 H2 2015

mn

sq

ft

New Completions Absorption

KEY TAKEAWAYS

RESIDENTIAL

2015 ENDS WITH THE LOWEST NEW LAUNCHES AND

SALES VOLUME SINCE 2010

OFFICE at 84.2%, OCCUPANCY HIGHEST SINCE 2008

Severe supply crunch of quality office space

putting upward pressure on rentals

INDIA July – December 2015