REALTY DECODED Q4 FY’16 - d27p8o2qkwv41j.cloudfront.net

1 REALTY DECODED Q4 FY'16. APRIL 2016. Structure INSIGHTS & OUTLOOK. LAUNCHES CONSUMER & DEMAND. INVENTORY SCENARIO. PRICE TRENDS MACRO INDICATORS. Page 01 REALTY DECODED Q4 FY'16. Key Insights And Outlook Page 02 REALTY DECODED Q4 FY'16. Key Insights Sales have decreased marginally by 4% over Q3 FY'16, from 53k (Q3 FY'16) to 51k (Q4 FY'16), this being one of the lowest fall over preceding 9 quarters; the sales over the last 4 quarters have hovered in the 49K to 57K; possibly indicating that downside is limited from here onwards Over 97% residential demand in major cities in the Q4 FY'16 was witnessed from the end-user; a sharp increase from 77%. demand seen in the Q1 FY'16. Launches during Q4 FY'16 have recorded a decline of 14% over the previous quarter and 51% compared to the same period last year; all cities have seen the decline indicating the reduction in the activity levels across the primary residential markets While response to the launches from quality developers has been relatively better, the sector is largely grappling with the slow inventory movement of existing projects; thus putting pressure on cash ow of projects, thereby impacting fresh deployment of funds in new projects Sub 75 Lac budget segment is seeing increase in proportion of total launches with 69% of total launches in Q4 FY'16.

2 Being in this category; up from 63% seen in Q3 FY'16. Over 50% sale continues to be in the affordable segment; with all the 4 quarters in FY'16 seeing the same trend Hyderabad is the only city to show increase in sale over previous year; with Q4 FY'16 growing at 5% over Q4 FY'15. All other cities have seen decline from 4% to 44% over same period Hyderabad has seen the most price appreciation rising by 15% over the last 12 quarters; Bengaluru is catching up closely at 13% price appreciation. The price increase on real basis, however, has seen negligible Unsold inventory in Bengaluru and Hyderabad witnessed declining trend owing to increased sales and decline in launches Page 03 REALTY DECODED Q4 FY'16. Outlook As per International Monetary Fund (IMF), the Global Economic growth is projected to be at in 2017. While developed economies are showing modest recovery, many emerging economies are witnessing slowdown in growth India's economic growth is expected to be at in FY'17 against in FY'15 according to the forecast by International Monetary Fund (IMF).

3 The growth is expected to be driven by fall in crude oil prices, better than expected monsoon, uptake of investment activity both in private and public sectors and improvement in global trade and investments. The Reserve Bank of India is taking further measures to bring down in ation from current levels of While the global economic scenario remains tough; the domestic macro factors of interest rates and in ation have started softening although at a tepid pace. While the long term story for residential market remains strong; the short term is expected to be sluggish Affordable housing supply and demand is expected to see thrust in the short to medium term on account of incentives offered by the Government in the Union budget to both developers and the rst time buyers With the RERA (Real estate Regulatory Authority) bill now a reality, the real estate market is expected to see fundamental changes in the way of operation.

4 While this is going to augur well for the sector in the long term, however it is equally expected to create imbalances in demand and supply on account of adherence of disclosure norms and processes on the supply side and buyers getting more information to decipher and evaluate their dream projects Page 04 REALTY DECODED Q4 FY'16. Launches: Hitting The Bottom? Page 05 REALTY DECODED Q4 FY'16. Launches continue to make new lows; at lowest levels in 12 quarters # of units Total number of launches in Top-9 cities*. 160,000. 142,627. High Inventory levels, 140,000. limited demand, tight 120,000 115,890 116,402 cash flows leading to 108,226 developers adopting a 100,000 cautious mode -32%. 78,075 75,357 79,343. 80,000 73,433. 60,000 50,594 -51%. 42,269. 40,000 36,774 36,275. 20,000. 0. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4. FY'14 FY'14 FY'14 FY'14 FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16. Notes: * Top 9 cities are Mumbai (includes Navi Mumbai & Thane), Pune, Noida (includes Greater Noida & Yamuna Expressway), Gu rgaon (includes Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata, and Ahmedabad.

5 Analysis includes apartments and villas across these regions. Source: PropTiger DataLabs Apr'16. Page 06 REALTY DECODED Q4 FY'16. All cities saw reduction in launches over Q4 FY'15. % change in total launches Ahmedabad Bengaluru Chennai Hyderabad Kolkata Noida* Pune Mumbai** Gurgaon^. (Q4 FY'15 Q4 FY'16) -82% -34 -39% -18% -44% -51% -70% -59% -12%. # of units Total unit launches Q4 FY'15 vs Q4 FY'16. 18,490. Prestige Kew Gardens & Shantiniketan Buildcon 20,000 Artha Emprasa Phase 2 Prakriti & Gulshan Homz Q4 FY'15. Botniahave launched >900. 14,954. have launched >850 units 14,363. units Q4 FY'16. 15,000 Prime Lifespace Arete Homes Phase Raheja 9,873. 1 & Asta Avm have launched >650 units Maheshwara 7,623. 10,000 has launched 6,930. 6,625. ~663 units in Sohna 4,296. 4,047. 3,971. 3,392. 3,366. 2,953. 5,000 2,781. 2,214. 1,755. 1,553. 522. 0. Ahmedabad Bengaluru Chennai Hyderabad Kolkata Noida* Pune Mumbai** Gurgaon^.

6 Notes: * 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. Source: PropTiger DataLabs Apr'16. Page 07 REALTY DECODED Q4 FY'16. Affordable housing to gain further traction due to lucrative incentives announced in Union Budget-FY17. Q-o-Q budget-wise unit launches in Top-9* cities % of units 100%. 15% 13% 15% 15% 15% 17% 14% 12%. 90% 18% 18% 20%. 25%. 7% 8% 7% 7% 8% 10%. 80% 8% 10% 8% 8% > Crore 11%. 70% 15% 15% 16% 19% 21% 12%. 20% 19% 23% 16% 25% Lacs 60%. 24%. 17%. 50% Lacs 41% 41% 40%. 40% 39% 36% 35% Lacs 30% 33% 41%. 42% 27%. 30% 32%. < Lacs 20%. 10% 22% 23% 22% 20% 20% 22% 23% 20% 16% 14% 18%. 12%. 0%. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4. FY'14 FY'14 FY'14 FY'14 FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16. Notes: * Top-9 cities are Mumbai (includes Navi Mumbai & Thane), Pune, Noida (includes Greater Noida & Yamuna Expressway), Gurga on (includes Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad Analysis includes apartments and villas across the regions.

7 Source: PropTiger DataLabs Apr'16. Page 08 REALTY DECODED Q4 FY'16. Consumer & Demand : Affordability And End Use Defining The Game Page 09 REALTY DECODED Q4 FY'16. Marginal decline in sales over previous quarter; bottom formation around the corner # of units Sales trend in Top-9 cities*. 160,000. The sales over the last 140,000 134,190 4 quarters have 117,680 114,302. hovered in the 49K to 120,000 57K; possibly indicating 107,013 that downside is limited 100,000 92,725 from here onwards -39%. 80,366. 80,000 76,739. 65,789. 60,000 57,245 53,457 51,550 -22%. 48,976. 40,000. 20,000. 0. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4. FY'14 FY'14 FY'14 FY'14 FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16. Notes: * Top-9 cities are Mumbai (includes Navi Mumbai & Thane), Pune, Noida (includes Greater Noida & Yamuna Expressway), Gurga on (includes Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.

8 Analysis includes apartments and villas across the regions. Source: PropTiger DataLabs Apr'16. Page 10 REALTY DECODED Q4 FY'16. Higher preference for projects, showing traction on ground # of units Sales in Top-9* cities in new launches vs old projects 80,000. 70,204. 70,000 64,326 64,155. 59,662. 60,000 63,922 53,311 55,312. 50,140 50,116. 47,351 47,845. 50,000. 39,957. 37,413 36,267 35,802. 40,000 34,653 34,874. 30,250 28,894. 30,000 25,832. 20,978. 17,655 16,676. 20,000 14,323. 10,000. 0. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4. FY'14 FY'14 FY'14 FY'14 FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16. New Launches (Launch date 6 months) Old Projects ( Launch date > 6 months). Notes: * Top-9 cities are Mumbai (includes Navi Mumbai & Thane), Pune, Noida (includes Greater Noida & Yamuna Expressway), Gurga on (includes Bhiwadi, Dharuhera & Sohna), Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.

9 Analysis includes apartments and villas across the regions. Source: PropTiger DataLabs Apr'16. Page 11 REALTY DECODED Q4 FY'16. Hyderabad, Bengaluru and Gurgaon defy trend; increase in sales over previous quarter Q-o-Q sales index 110. 105. 100 100. 94 96. 93. 90 91. 90. Index value (Base: Q4 FY'15=100). 87. 83 85. 84. 80 79 78 82. 80. 76. 77 77 75. 74. 70 68. 70. 64 66. 65. 60 60. 58. 56. 50. Q4 Q1 Q2 Q3 Q4. FY'15 FY'16 FY'16 FY'16 FY'16. Ahmedabad Bengaluru Chennai Gurgaon^ Hyderabad Kolkata Mumbai** Noida* Pune Notes: * Noida includes Greater Noida and Yamuna Expressway. ** Mumbai includes Navi Mumbai and Thane. ^ Gurgaon includes Bhiwadi, Dharuhera and Sohna. Source: PropTiger DataLabs Apr'16. Analysis includes apartments and villas across the regions. Page 12 REALTY DECODED Q4 FY'16. Affordable segment continued to hold dominant share in total sales Sales in Top-9* cities by budget segment % of sales 100%.

10 90% 24% 23% 23% 23% 24% 24% 23% 25% 25% 27% 29% 28%. 80%. 70% 18% 18% 18%. 18% 19% 20% 21% 19% 23% 21% 19% 20%. 60%. 50%. 40%. 30% 58% 59% 59% 59% 57% 56% 56% 56% 52% 52% 52% 52%. 20%. 10%. 0%. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4. FY'14 FY'14 FY'14 FY'14 FY'15 FY'15 FY'15 FY'15 FY'16 FY'16 FY'16 FY'16. Affordable Segment 1 Mid Segment 2 Luxury Segment 3. Notes: 1: Affordable segment: Units within < Lacs budget 2: Mid-segment: Units within Lacs budget 3: Luxury segment: Units in > Lacs budget Analysis includes apartments and villas across the regions. Source: PropTiger DataLabs Apr'16. Page 13 REALTY DECODED Q4 FY'16. Barring Gurgaon and Mumbai, all cities shown high demand for < Rs. 50 Lacs properties Budget-wise real estate end-user demand^^ Q4 FY'16. % of demand 100% 5% 3% 4%. 9% 7% 3% 5% 7%. 3% > Crore 90% 14% 9%. 11% 12% 13% 26% 11%. 16% 31%. 80% Lacs 70% 20% 28% Lacs 25%. 27% 35%. 15% 22%.