PROPERTY INSIGHTS

India Quarter 2, 2011

Market Overview
Macro Economic Indicators
The Gross Domestic Product (GDP) at factor cost (at 2004-05 prices) was estimated at INR 13,17,554 crore for the fourth quarter of 2010-2011; registering a growth rate of about 7.8% compared to the same period in the previous year. The increase was mainly propelled by trade, hotels, transport and communication sector and the financing, insurance, real estate and business services segment. Construction and agriculture, forestry and fishing sector recorded a growth of 8.2% and 7.5% respectively. The Reserve Bank of India has in the Mid Quarter Monetary Policy Review; June 2011 announced further revision in the repo and reverse repo rates. The repo rate was raised to 7.50% and reverse repo rate to 6.50% with immediate effect. The revision is a corollary to the current macroeconomic assessment thereby acting as a moderating mechanism in wake of the inflationary conditions in the economy.

GROSS DOMESTIC PRODUCT GROWTH RATE

12.0%
Growth Rate (%)

10.0% 8.0% 6.0% 4.0% 2.0%

10.1% 9.6%

9.7%

9.7% 7.6% 8.5% 7.5% 6.3% 6.1% 5.8%

9.3%

9.3% 9.4%

8.6%

9.4% 9.3%

8.9% 7.8% 8.3%

7.3%

Apr - Jun 06

Jul - Sep 06

Oct - Dec 06

Jan - Mar 07

Apr - Jun 07

Jul - Sep 07

Oct - Dec 07

Jan - Mar 08

Apr - Jun 08

Jul - Sep 08

Oct - Dec 08

Jan - Mar 09

Apr - Jun 09

Jul - Sep 09

Oct - Dec 09

Jan - Mar 10

Apr - Jun 10

Jul - Sep 10

Oct - Dec 10

Source: Central Statistical Organisation, Govt. of India

Jan - Mar 11

0.0%

 The housing and real estate sector received Foreign Direct Investments (FDI) of approximately INR 167 crore during the month of April 2011; which was a decline of about 32% compared to the same period in 2010-11. During the year 2010-11, the sector has witnessed cautious investments with FDI inflows registering a decline of about 62% compared to the same period in the previous year. This is to a great extent on account of the stricter policies of the Government of India on foreign investment in the sector post the global slowdown. Besides, the investor sentiments have also been conservative thereby undertaking stringent scrutiny/project reviews before directing inflows.

FDI INFLOW IN HOUSING AND REAL ESTATE SECTOR

16,000 14,000 12,000
INR Crore

12,621 8,749

13,586

10,000 8,000 6,000 4,000 2,000 0 171 2005-06 2006-07 2,121

5,149

167 2007-08 2008-09 2009-10 2010-11 Apr-11

Source: Ministry of Commerce & Industry, Govt. of India

The trend of overall appreciation in the rupee against the US dollar which has been prevailing since April 2009 was observed to continue during 1Q 2011, however during the month of May 2011, rupee depreciated by 1.2% over April 2011. The rupee depreciation has adversely impacted the economy due to the high global commodity prices. However, with the recent revision in the interest rates, the inflationary tendencies in the economy is likely to see some control and the rupee value is further expected to strengthen by the end of 2011.

EXCHANGE RATE MOVEMENT (INR/USD)

49 48
INR/ USD
48.43 46.83 46.56 46.06 45.39 45.15 45.43 45.61

47 46 45 44 43 42

46.72 46.56

46.62

46.32

46.45 45.78

45.95

45.49 44.49 44.45

44.96 44.37

44.90

Oct-09

Sep-09

Jan-10

Mar-10

Apr-10

Jun-10

Aug-10

Sep-10

Oct-10

Jan-11

Nov-09

Dec-09

Feb-10

May-10

Nov-10

Dec-10

Feb-11

Mar-11 Apr-11

Jul-10

Source: Ministry of Finance, Govt. of India

Real Estate Developments

The BSE Realty Index continued with its subdued trend during the quarter ended 30th June 2011. The index recorded a high during the first two weeks of April 2011 and remained sluggish though recording minor variations in the course. Though, various analysts have earlier predicted better performance by the real estate stock, however, the profit margin of the developers has not strengthened as expected in spite of the hike in the property prices due to the rising interest rates, cost of construction and unsold inventory.

May-11

BSE REALTY INDEX

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
28-Jan-10 28-Feb-10 31-Mar-10 30-Apr-10 31-May-10 30-Jun-10 31-Aug-10 30-Sep-10 31-Oct-10 31-Jul-10 30-Nov-10 31-Dec-10 31-Jan-11 28-Feb-11 31-Mar-11 30-Apr-11 31-May-11 30-Jun-11

Source: Bombay Stock Exchange

The capital values of the residential properties across the major metros have appreciated during the second quarter of 2011. The main reason that can be attributed to the increase in capital values is owing to the enhanced demand from both the end-users and investors. Infrastructural and commercial developments have also led to an increase in demand of residential properties thereby perpetuating the movement of the prices in the northward direction.

RESIDENTIAL CAPITAL VALUES GROWTH INDEX

800 700 600 500 400 300 200 100 2001 2002 2003 2004 2005 2006 2007 2008 2009
Bengaluru (Burnton Road Lavalle Road) Hyderabad (Banjara Hills) Mumbai (South) Pune (Koregaon Park)

Index

1Q 2Q 3Q 4Q 1Q 2Q 2010 2010 2010 2010 2011 2011

Chennai (Boat Club) Kolkata (Ballygunge) NCR (Satya Niketan Anand Niketan)

Source: Cushman & Wakefield Research

During the second quarter of 2011, southern cities of Bengaluru, Chennai and Hyderabad accounted for approximately 43% of the new unit launches. Most of these new launches were recorded in the high segment category. Bengaluru accounted for the second highest number of unit launches while NCR recorded the highest number of new additions.

NEW RESIDENTIAL UNIT LAUNCHES ACROSS LOCATIONS IN 2Q 2011

30% 25% 20% 15% 10% 5% 0%
ur u ad C R ne ai i nn ba ab Pu C he um N al Ko ng er lk a ta

28% 22% 14% 7%

New unit launches (%)

15% 9% 4%

H yd

Source: Cushman & Wakefield Research

Be

Index
Ahmedabad Bengaluru Chennai Hyderabad Kolkata Mumbai National Capital Region Pune 1 4 9 12 16 19 22 26

Ahmedabad
Market Overview
Buoyant demand coupled with positive market sentiments, upcoming festive season and underlying positive economic outlooks will stimulate Ahmedabads residential market over the next three to four months. As a result, many developers are expected to launch new projects in near future. While suburban locations may witness some increase in values, the large upcoming supply in peripheral locations will keep capital values under pressure. The Ahmedabad Municipal Corporation (AMC) revenue committee has decided not to hike property tax rates for Ahmedabad for the next five years. This is expected to further stimulate the positive market sentiments in the citys real estate landscape.

Trends & Updates

Ready Property Update
In the second quarter of 2011, Ahmedabad continued to witness buoyant transaction activities particularly from end-users. As a result, capital values across most micro markets witnessed some appreciation during the quarter. In addition to improvement in demand, increase in cost of funds and rise in raw material costs were other key reasons which have stimulated a few developers to increase capital values in the second quarter of 2011. Concerned about further increase in realty rates, several end-users who had earlier adopted a wait and watch approach are now executing their purchase decisions. However, liquidity crunch has forced investors to stay at bay. Concerned about timely completion of under construction projects, most end-users exhibited an increased preference for ready to move in projects or apartments in secondary sales. With most developers focusing on completing existing projects, the city witnessed restrained new project launches. Many developers are anticipating a further increase in demand during the festive season in fourth quarter of 2011. This coupled with positive market sentiments and buoyant demand is likely to result in a few new project launches over the next three to four months.

Average Capital Values - High End (INR000/Sq.ft.)

Location
Satellite Vastrapur S.G.Highway Prahlad Nagar

Q1 2010
3.80 - 4.30 3.40 - 3.70 3.50 - 4.10 4.00 - 5.00

Q2 2010
3.90 - 4.60 3.60 - 4.00 3.50 - 4.10 4.10 - 5.00

Q3 2010
4.00 - 4.60 3.60 - 4.00 3.60 - 4.30 4.20 - 5.20

Q4 2010
4.00 - 4.80 3.70 - 4.00 3.70 - 4.30 4.20 - 5.30

Q1 2011
4.30 - 5.00 3.70 - 4.00 3.70 - 4.30 4.20 - 5.30

Q2 2011
4.30 - 5.10 3.70 - 4.00 3.70 - 4.50 4.20 - 5.30

Source: Cushman and Wakefield Research. Note: The above values for high segment typically include units of 2,000-4,000 sq.ft.

Average Capital Values - Mid Ranged (INR000/Sq.ft.)

Location
Satellite Vastrapur S.G.Highway Prahlad Nagar

Q1 2010
2.80 - 3.40 2.60 - 3.20 2.80 - 3.40 2.70 - 3.30

Q2 2010
2.80 - 3.60 2.60 - 3.30 2.80 - 3.40 2.70 - 3.30

Q3 2010
2.80 - 3.80 2.60 - 3.50 3.00 - 3.60 2.80 - 3.60

Q4 2010
2.80 - 3.80 2.60 - 3.50 3.00 - 3.80 2.80 - 3.60

Q1 2011
2.80 - 4.10 2.60 - 3.60 3.30 - 4.10 2.80 - 3.60

Q2 2011
2.80 - 4.20 2.60 - 3.80 3.30 - 4.20 3.00 - 4.00

Source: Cushman and Wakefield Research. Note: The above values for mid segment typically include units of 1,200-1,800 sq.ft.

 Residential transactions in the city were driven by end-users with preference for completed or near completion projects. Mid ranged projects in S.G. Highway, Satellite, and Thaltej emerged amongst the preferred destinations for end users. While demand in the mid segment is buoyant owing to the wide gap between supply and demand, the high-end segment has witnessed a slump. Many investors are now looking to exit from their investments, particularly from ready to move in projects. With investors offering discounted rate of 10-12% as compared to market prices, secondary sales market in the city have received a stimuli. In order to further stimulate transaction activities, a few developers are offering freebies like white goods, modular kitchens, incentive schemes to name a few.

Premium Ready Residential Property Values in June 2011

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 4,500
Price (INR/sft)

2,800

2, 550

2,500

Green Acres

Sangath Platina

Abhiyan

Devratna-2

Source: Cushman & Wakefield Research

New Launches* & Under-Construction Update

With most developers focusing on completion of existing projects, the city witnessed limited new project launches. However, S.G. Highway witnessed a few prominent new project launches. Godrej Garden City Phase 4 by Godrej Properties and Enigma by Ajmera Realty were amongst major projects announced here during the second quarter of 2011. Additionally Sambhav Infrastructure launched Stavan Alteza at Satellite Road.

New Launches*

Stavan Alteza (Satellite Road) Sambhav Infrastructure - Apartments

Enigma (S.G. Highway) Ajmera Realty - Apartments

*This is not an exhaustive list.

2

Under-Construction Update
Many developers are expected to launch new projects during the festive season to address the demand generated during that time. Improvement in transactions will pace up construction activity resulting in completion of several significant mid ranged and high-end residential properties over the next six to nine months. Altius (Thaltej), Samarana (Prahlad Nagar) and Riviera Harmony (Prahlad Nagar) are some of the major residential projects which are expected to get completed in 2011 and Neelkanth Orchid (Bopal) is expected to be completed by end of 2012.

Bengaluru
Market Overview
In the forthcoming quarters, major project launches by prominent developers are likely to continue. The new launches will have a balanced mix of both high and mid segment developments. Quite a few major projects in the mid segment category are expected to be delivered during the year. Capital value in the short term will remain stable, however, marginal escalations may continue and be in the range of 2-4%. Good price propositions and better bargains are expected to be offered by developers to reduce the quantum of unsold stock in under-construction projects. Bengalurus never ending infrastructure woes have been a major concern for all the potential real estate investors. The city has witnessed tremendous growth in terms of population and the number of companies setting up office herein. Thus, the ongoing projects such as Bengaluru Metro rail project and the various flyovers and the underpass construction activities in the Outer Ring Road (ORR), CNR and BHEL Circle would ease the congestion and provide better connectivity for all the commuters. Many infrastructure developmental projects are lined up to change the face of North Bengaluru. The elevated signal-free highway from Hebbal to Devanahalli Airport and the proposed High Speed Rail Link project (HSRL) from the Central Business District to the Devanahalli airport have led many developers to launch their new projects in this area. With metro rail work nearing for completion in the North West Bangalore, the capital values of the residential properties have seen a significant rise in the micro market. Four laning of Bengaluru-Mysore Road and Bengaluru-Mysore Express Corridor will also boost the real estate investments, as these initiatives will offer better infrastructure and connectivity to the prime business districts.

Trends & Updates

Ready Property Update
In the Bengaluru residential market, no major project was delivered during the second quarter of 2011. Capital values for ready property appreciated in the range of 3-6% in the high segment; while in the mid segment, the appreciation ranged between 4-8%. The second generation properties were witnessed to gain mainly on account of the high price points commanded by few significant projects, under-construction properties, new project launches by major developers in the micro markets besides increased demand. This trend was pronounced in the Off Central, North and North West Bengaluru micro markets. Increasing interest and enquiries were observed from investors in Mumbai & NCR region. The market witnessed landlords who were weighing and enquiring about options to either rent or even sell the same property on availability of a good price. A demand was observed for bulk purchases in new ready properties however, no situation of distress sale was observed in the market.

Average Capital Values High End (INR000/Sq.ft.)

Location
Central South Off Central East North

2009
12.00 - 14.50 6.00 - 8.50 5.00 - 6.60 5.60 - 7.00 5.50 - 7.00

Q1 2010
12.00 - 15.00 5.50 - 9.00 5.00 - 6.60 5.60 - 6.80 5.50 - 6.50

Q2 2010
13.00 - 16.00 5.80 - 9.00 5.00 - 6.80 6.00 - 7.00 5.50 - 6.80

Q3 2010
13.00 - 16.00 5.80 - 9.00 5.00 - 6.80 6.00 - 7.00 5.50 - 7.00

Q4 2010
13.50 - 17.50 6.00 - 9.50 5.00 - 7.00 6.50 - 7.50 5.50 - 7.00

Q1 2011
13.60 - 17.60 6.10 - 9.70 5.20 - 7.10 6.50 - 7.70 5.70 - 7.00

Q2 2011
14.00 - 18.00 6.50 - 10.00 5.50 - 7.50 6.80 - 8.00 6.00 - 7.40

Source: Cushman and Wakefield Research. Note: The above values for high segment typically include units of 3,000-5,000 sq.ft.

Average Capital Values - Mid Ranged (INR000/Sq.ft.)

Location
Central East South East South North South West Off Central* Off Central** North West

2009
5.00 - 6.00 2.40 - 2.70 2.50 - 3.20 4.60 - 5.70 2.80 - 4.00 2.70 - 3.90 3.70 - 5.70 3.30 - 5.70 3.50 - 5.20

Q1 2010
5.00 - 6.50 2.40 - 2.90 2.50 - 3.50 4.60 - 5.70 2.60 - 4.30 2.90 - 3.90 3.70 - 5.70 3.50 - 5.70 3.50 - 5.10

Q2 2010
5.20 - 6.60 2.70 - 3.00 2.70 - 3.80 4.60 - 5.80 2.80 - 4.30 3.00 - 4.30 3.80 - 5.90 3.60 - 5.90 3.80 - 5.40

Q3 2010
5.50 - 7.00 2.70 - 3.00 2.80 - 4.00 4.80 - 6.00 2.80 - 4.30 3.20 - 4.50 4.00 - 6.20 3.80 - 6.20 3.80 - 5.60

Q4 2010
5.50 - 7.00 2.70 - 3.10 2.80 - 4.00 4.80 - 6.00 2.80 - 4.40 3.20 - 4.50 4.00 - 6.20 3.80 - 6.20 3.80 - 5.60

Q1 2011
5.60 - 7.10 2.70 - 3.30 2.80 - 4.30 4.80 - 6.30 2.80 - 4.50 3.30 - 4.70 4.20 - 6.40 3.90 - 6.40 3.90 - 5.80

Q2 2011
5.80 - 7.40 3.00 - 3.50 3.00 - 4.50 5.00 - 6.50 3.00 - 4.80 3.60 - 5.00 4.50 - 6.70 4.30 - 6.70 4.30 - 6.20

Source: Cushman and Wakefield Research. Note: The above values for mid segment typically include units of 1,700-2,500 sq.ft

Majority of new project launches during the quarter are located in the North, North East and South Bengaluru micro markets with more focus on luxury villa projects. Under construction projects which are slated for completion in the forth coming quarters observed increased take-ups and with few developers registering their projects being 100% sold out. Capital values appreciated in the range of 3-8% across all micro markets in both the segments during the second quarter of 2011. The appreciation was pronounced in the under construction projects, moreover, second generation properties in the same micro markets also gained as a consequence. Most of the under construction projects, which are nearing completion and have relatively less unsold stock were observed to quote substantially higher prices compared to the previous quarter.

Premium Ready Residential Property Values in June 2011

7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
4,000

Price (INR/sft)
6,500 5,750 5,250 4,450 4,500 4,500

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Pr om

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Pr es tig e

M an t

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Br ig

El it

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Source: Cushman & Wakefield Research

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Key to Locations:
High End Segment Central: Lavelle Road, Off Palace Road, Off Cunnigham Road, Ulsoor Road, Richmond Road High End Segment South: Koramangala, Outer Ring Road, Bannerghatta Road, JP Nagar High End Segment Off Central: Frazer Town, Benson Town, Richards Town, Dollars Colony High End Segment East: Whitefield (Villas) High End Segment North: Hebbal, Yelahanka, Jakkur, Devanahalli Mid Ranged Segment Central: Brunton Road, Artillery Road, Ali Askar Road, Cunningham Road Mid Ranged Segment East: Marathalli, Whitefield, Airport Road Mid Ranged Segment South East: Sarjapur Road, Outer Ring Road, HSR Layout Mid Ranged Segment South: Koramangala, Jakkasandra Mid Ranged Segment South West: Jayanagar, J P Nagar, Kanakpura Road, Bannerghatta Road, BTM Layout Mid Ranged Segment North: Hebbal, Bellary Road, Yelahanka, Dodballapur Road, Jalahalli Mid Ranged Segment Off Central*: Vasanth Nagar, Richmond Town, Indiranagar Mid Ranged Segment Off Central**: Cox Town, Frazer Town, HRBR, Benson Town, etc. Mid Ranged Segment North West: Malleshwaram, Rajajinagar

New Launches* & Under-Construction Update

Compared to the previous quarter, the residential market in Bengaluru witnessed some aggressive new launches from the leading developers. The prominent being Sobha City, Century Istana, LGCL Stonescape, Salarpuria Magnificia and Brigade Orchards among others. Majority of the new launches were in North Bengaluru micro market and was mainly in the high segment category. It was observed that most of the developers were targeting the North Bengaluru micro market, especially Devanahalli area with integrated property developments comprising of villas and townhouses at a competitive price band of INR 1.6-2 crore. Moreover, quite a few developers were also witnessed to advertise for pre-launch of their projects to acquire advance booking.

New Launches*

Sobha City (Thanisandra Main Road, Near Hebbal, North Bengaluru) Sobha developers - Apartments

Century Istana (Devanahalli, 4 Kilometers from Bengaluru International Airport on NH 13) Century Real Estate - Villas

Brigade Exotica [No. 35 and 36/1 p, Old Madras Road (before Budigere Cross)] Brigade Group - Apartments

Brigade Orchards (Devanahalli, Bengaluru) Brigade Group - Villas

Mantri Alpyne (Uttarahalli Village, Uttarahalli Hobli, Banashankari 5th Stage Bengaluru South Taluk) Mantri Developers - Apartments

Salarpuria Magnificia (Old Madras Road) Salarpuria Group - Apartments

RMZ Galleria Residences (Yelahanka) RMZ Corp - Apartments

Prestige Park View (Whitefield) Prestige Group - Apartments

Embassy Boulevard (Near to Yelahanka Air Force Station) Embassy Group - Villas

*This is not an exhaustive list.

Under-Construction Update
During the quarter in review, most of the under-construction projects were observed being executed as per schedule recording work progression by about 20-25% points compared to the previous quarter. Moreover, demand for under-construction properties persist thereby developers were observed to capitalise on the enhanced demand scenario and initiate the construction activities of new projects within the same quarter of their launch. Mention finds of projects like Brigade Exotica, Brigade Orchards and Mantri Alpyne which were launched and commenced construction during the quarter. Nitesh Logos, SJR Celestia, Concorde Cuppertino and Napa Valley, which were launched in the previous quarter, were also witnessed to commence the construction activities. Moreover, a number of developments which are in final stages of construction and is likely to enter the market in the forthcoming quarters were observed to register substantial increase in the prices compared to the previous quarter or was fully sold out.

Chennai
Market Overview
Most premium residential catchments in the city might continue to retain stable values in the next 3 to 6 months due to the high pricing levels prevalent. In the mid-end segment most markets are likely to see some increase in prices in the coming quarters. Established mid-end markets with limited availability of options catering to the mid segment housing demand might witness stable property prices in the medium term. Chennai Metro Rail work has been progressing as per schedule. The elevated stretch from Koyambedu to St. Thomas Mount is expected to be completed by the end of 2013 and the underground stretch of Metro Rail from Washermanpet to Saidapet may be completed by the end of 2015. Soil testing is being conducted in Washermanpet and the tunneling work is expected to begin by end of December. Also the preliminary operational trial is likely to commence on the 11 km Koyambedu - St. Thomas Mount stretch by December, 2013. The completion of the elevated stretch might result in improved connectivity and lesser congestion due to the ongoing works. This in turn is likely to result in renewed demand for residential developments in these locations.

Trends & Updates

Ready Property Update
The Chennai Housing market witnessed persistent demand during the second quarter of 2011. The premium housing markets in the city continued to command high property prices during the period. Several high-end markets such as Boat Club and Poes Garden witnessed moderate appreciation in the range of 1-3%, as seen during the last few quarters. The stable capital values witnessed in the other high-end markets may be attributed to the current pricing levels in these markets. Despite the high prices, several ready property buildings in these markets noticed price appreciation during the quarter. For instance, several buildings in Anna Nagar including Newry Shreenidhi and Golden Altius have witnessed higher asking prices during the quarter driven by the shortage of high-end projects in this location. While certain mid-end markets noticed growth in property prices during the second quarter, other mid-end precincts remained stable with no fluctuations in their values. Rajiv Gandhi Salai and GST Road noticed an escalation of 4-8% during the quarter. Velachery also noticed a minor increase of 4% in capital values. The growth in these markets may be as a result of the persisting demand for mid-end and affordable housing in the city. The second quarter of 2011 witnessed several projects being handed over. Tulip by Landmark Builders in K.K. Nagar was handed over during the quarter along with Malles Anugraha in West Mambalam. In addition to these projects, VGN Minerva, Doshi Etopia II and the first four towers of L&T Eden Park were also ready for occupation during the quarter.

Average Capital Values - High End (INR000/Sq.ft.)

Location

2008 18.00 - 24.00 13.00 - 15.00 5.50 - 10.00 14.50 - 20.00

2009 18.00 - 20.00 13.00 - 15.00 5.50 - 9.50 14.50 - 18.00 13.00 - 16.00 6.00 - 9.00 4.00 - 8.00

Q1 2010 18.00 - 21.00 13.00 - 16.50 6.00 - 11.00 14.50 - 19.00 13.00 - 16.50 6.50 - 10.00 5.00 - 9.00

Q2 2010 18.00 - 21.00 13.00 - 16.50 8.00 - 12.00 14.50 - 19.00 13.00 - 16.50 7.50 - 10.50 6.00 - 9.50

Q3 2010 18.00 - 21.00 13.00 - 16.50 8.00 - 12.00 14.50 - 19.00 13.00 - 16.50 7.50 - 10.50 7.25 - 11.00

Q4 2010 18.00 - 23.00 13.00 - 16.50 8.00 - 12.00 14.50 - 20.00 13.00 - 16.50 7.50 - 10.50 7.25 - 11.00

Q1 2011 19.00 - 23.00 13.00 - 16.50 8.00 - 12.00 15.50 - 20.00 13.00 - 16.50 8.00 - 10.50 7.75 - 11.00

Q2 2011 19.00 - 23.50 13.00 - 16.50 8.00 - 12.00 15.50 - 20.50 13.00 - 16.50 8.00 - 10.50 7.75 - 11.00

Boat Club R A Puram Adyar Poes Garden

Nungambakkam 13.00 - 16.00 Anna Nagar Kilpauk 6.00 - 9.00 4.00 - 8.00

Source: Cushman and Wakefield Research. Note: The above values for high segment typically include units of 1,800-4,000 sq.ft.

Average Capital Values - Mid Ranged (INR000/Sq.ft.)

Location R A Puram Adyar Rajiv Gandhi Salai (Perungudi) Velachery Poes Garden T Nagar Nungambakkam Anna Nagar Kilpauk 2008 6.50 - 9.00 4.50 - 6.50 2.50 - 3.60 3.80 - 4.20 10.00 - 15.50 4.00 - 6.50 7.00 - 9.50 5.50 - 7.00 4.50 - 6.00 2009 6.50 - 9.00 4.50 - 6.50 2.50 - 2.80 3.50 - 4.00 10.00 - 14.00 4.00 - 6.50 7.00 - 9.50 5.50 - 7.00 4.50 - 6.00 Q1 2010 6.50 - 9.00 5.00 - 6.50 2.50 - 3.25 3.50 - 4.50 10.00 - 14.00 5.00 - 6.50 7.00 - 9.00 6.00 - 7.00 5.00 - 6.00 Q2 2010 6.50 - 9.00 6.00 - 8.50 3.00 - 4.00 3.50 - 5.00 10.00 - 14.00 6.50 - 9.00 9.00 - 11.50 6.00 - 7.50 5.00 - 6.00 Q3 2010 6.50 - 9.00 6.00 - 8.50 3.50 - 4.50 3.50 - 5.00 10.00 - 14.00 6.50 - 9.00 9.00 - 11.50 6.00 - 7.50 5.00 6.00 Q4 2010 6.50 - 9.00 6.00 - 8.50 3.50 - 4.50 3.50 - 5.00 10.00 - 14.00 7.50 - 10.50 9.00 - 11.50 6.00 - 7.50 5.00 - 6.00 Q1 2011 6.50 - 9.00 6.00 - 8.50 3.80 - 5.00 3.50 - 5.00 10.00 - 14.00 7.50 - 10.50 9.00 - 11.50 6.00 - 7.50 5.00 - 6.00 Q2 2011 7.00 - 9.50 6.00 - 8.50 4.00 - 5.50 3.50 - 5.30 10.00 - 14.00 7.70 - 11.00 9.00 - 11.50 6.00 - 7.50 5.00 - 6.00

Source: Cushman and Wakefield Research. Note: The above values for mid segment typically include units of 1,000-2,000 sq.ft.

Premium residential markets of Boat Club and Poes Garden have continued to register appreciation in property prices. The demand in these markets has picked up momentum over the last six months due to the inherent demand for prime properties. In the mid segment markets, Rajiv Gandhi Salai and GST Road have been most active in terms of property prices during the last two quarters. These markets have managed to meet the demands of the end-users in the mid and affordable segments. Due to factors like numerous options, improved connectivity and proximity to the suburban and peripheral office districts, the demand in these markets has remained uptrend. However, if developers continue to launch high quantum of projects in these markets, it is likely that these precincts might register a situation of oversupply in the long term. The capital values in majority of the high-end markets have attained/exceeded peak levels registered since 2008. As a result of these high persisting values, these markets have retained stable property prices during 2011.

Premium Ready Residential Property Values in June 2011

Price (INR/sft)

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

12,000 9,000

12,000

Golden Altius

Newry Shreenidhi

Lumbini Square

Source: Cushman & Wakefield Research.

10

New Launches* & Under-Construction Update

More than 2000 units were launched during the quarter with several significant launches in both high and mid segments. Close to 85% of the launches during the quarter were concentrated towards the mid-end segment. Peripheral markets noticed a number of new projects being launched; Poonamallee noticed a good number of projects being unveiled during the quarter. Majority of high-end launches during the quarter were noticed to be in the suburban districts, barring the launch of Vertica by Landmark Builders which is proposed to come up in Royapettah. During the quarter, new projects that were being rolled out were not restricted to the prominent developers.

New Launches*

Appaswamy Manderina (Lock Street, Kotturpuram) Appaswamy Real Estates - Apartments

S&P Living Spaces (Mogappair West Extension, Mogappair) S&P Foundation Private Limited - Apartments & Villas

*This is not an exhaustive list.

Under-Construction Update
Several significant projects are lined up for completion during the second half of 2011. Projects that are likely to be handed over by end of 2011 include Phase I of TVH Svasti, Arihant Amara and Hiranandani Upscale among others. Projects launched in 2010 are in various stages of construction, with more than 60% of projects likely to be ready for occupation in 2012. Projects like L&T Eden Park, HIRCO Palace Gardens are being completed in Phases with the first few blocks being handed over.

11

Hyderabad
Market Overview
The prime residential catchments, such as Banjara Hills and Jubilee Hills are likely to witness price appreciation in the quarters to come. This can be attributed to the prominence of these high profile areas, persistent demand and limited supply in the premium segment. Several other residential precincts including Begumpet, Somajiguda, Madhapur, Gachibowli and Kukatpally are also expected to register moderate increase in property prices. The appreciation in these markets is likely to be driven by the anticipated increase in sales activity in the next 3 to 6 months. Prime residential catchments such as Sainikpuri and Bowenpally in the inner city locations may witness continued demand and growing attention in the medium and affordable segments during the second half of 2011. However, the new regulation imposed by the state government (G.O.No.45) is expected to slow down or delay new launches in the short term. Several portions of the Outer Ring Road phase - IIA between Pedda Amberpet and Patancheru are scheduled for completion by the end of 2011. This corridor is expected to increase connectivity to the upcoming residential locations such as Aminpur and Bandlaguda in the northwest portion of the city. The flyover at Gachibowli junction which will ensure a smooth traffic flow between Madhapur and Kondapur towards the Outer Ring Road would be operational by the end of August. Apart from reducing the travel time between the IT hub and the international airport, this would also provide a quicker access to the residential areas such as Tolichowki, Shaikpet and Manikonda from the IT hub.

Trends & Updates

Ready Property Update
Hyderabad has witnessed mixed trends during the last quarter. While suburban areas recorded a positive trend indicating continued optimism in the market, the peripheral areas have remained stable and in certain cases decreased by 2-3% in capital values. The market witnessed continued demand and minimal supply in high segment residential areas such as Jubilee Hills and Banjara Hills resulting in a value appreciation of 4-6%. Select residential properties such as Aparna Orchid which is in close proximity to the IT hub of Madhapur and Aparna Sarovar in the vicinity of Gachibowli and the financial district have witnessed a similar trend with value appreciations reaching 11-13%. Kukatpally is another prime residential catchment that has recorded a similar trend in the last 3-4 months. Retail growth, ongoing and upcoming infrastructural developments especially in Madhapur and Kukatpally areas as well as the overall development in their immediate surroundings as a whole have resulted in a positive note for ready properties. Sale values of residential projects in high segment ranged between INR 3,800 and 5,000 per square feet. Medium segment varied between INR 2,900 and 3,400 per square feet at the same time. Project completions during the second quarter ranged between 1,300 to 1,700 units across affordable, medium and high segments. Some residential projects are giving partial possession to the buyers over the last 3-4 months. As developers are focused on timely completion, projects such as Aliens Elite, Aditya Sunshine, Meenakshi Sky Longue and Gowra Tulips are geared up for possession by the end of 2011 or early 2012.

12

Average Capital Values High End (INR000/Sq.ft.)

Location Banjara Hills Jubilee Hills Himayatnagar West & East Marredpally Begumpet, Somajiguda Madhapur, Gachibowli Kukatpally Miyapur, Nizampet Road 2008 6.50 - 7.10 6.50 - 7.10 3.40 - 4.40 3.30 - 4.30 3.90 - 4.50 3.80 - 4.40 3.30 - 4.30 Not Available 2009 5.80 - 6.50 5.50 - 6.30 3.30 - 4.00 3.30 - 3.80 3.90 - 4.50 3.50 - 4.30 3.30 - 4.00 2.60 - 3.30 Q1 2010 6.00 - 6.70 5.70 - 6.60 3.50 - 4.00 3.30 - 3.90 3.90 - 4.50 3.70 - 4.50 3.50 - 4.30 2.70 - 3.40 Q2 2010 6.00 - 7.00 5.70 - 7.00 3.70 - 4.00 3.50 - 4.00 4.10 - 4.50 3.80 - 4.50 3.50 - 4.30 2.70 - 3.40 Q3 2010 6.00 - 7.00 5.70 - 7.00 3.70 - 4.00 3.50 - 4.00 4.10 - 4.50 3.80 - 4.70 3.50 - 4.50 2.70 - 3.40 Q4 2010 6.00 - 7.20 6.00 - 7.00 3.70 - 4.00 3.50 - 4.00 4.10 - 4.50 3.80 - 4.90 3.50 - 4.50 2.70 - 3.40 Q1 2011 6.00 - 7.40 6.00 - 7.00 3.70 - 4.00 3.50 - 4.20 4.10 - 4.70 3.80 - 5.00 3.50 - 4.80 2.70 - 3.40 Q2 2011 6.30 - 7.40 6.20 - 7.00 3.70 - 4.00 3.60 - 4.20 4.30 - 4.70 4.00 - 5.00 3.80 - 4.80 2.70 - 3.40

Source: Cushman and Wakefield Research. Note: Values are average prices for the respective areas. Pricing will differ based on the construction quality, developer profile and amenities available. The above values for high range typically include units of 1,600-3,200 sq.ft.

Average Capital Values High End (INR000/Sq.ft.)

Location Banjara Hills Jubilee Hills Himayatnagar West & East Marredpally Begumpet, Somajiguda Madhapur, Gachibowli Kukatpally Miyapur, Nizampet Road 2008 3.40 - 4.20 3.40 - 4.00 2.60 - 3.00 2.50 - 3.00 2.50 - 3.00 2.60 - 3.00 2.40 - 2.80 Not Available 2009 3.60 - 4.20 3.50 - 4.00 2.70 - 3.00 2.50 - 2.80 2.60 - 3.10 2.50 - 3.10 2.40 - 2.90 1.80 - 2.50 Q1 2010 3.60 - 4.30 3.70 - 4.00 2.70 - 3.20 2.50 - 2.90 2.80 - 3.10 2.50 - 2.90 2.60 - 3.20 1.80 - 2.50 Q2 2010 3.60 - 4.30 3.70 - 4.00 2.70 - 3.50 2.70 - 3.00 2.80 - 3.50 2.60 - 3.20 2.60 - 3.20 1.80 - 2.50 Q3 2010 3.60 - 4.50 3.70 - 4.00 2.70 - 3.50 2.70 - 3.00 2.80 - 3.50 2.60 - 3.20 2.60 - 3.20 1.80 - 2.50 Q4 2010 3.60 - 4.50 3.70 - 4.00 2.70 - 3.50 2.70 - 3.00 2.80 - 3.50 2.60 - 3.40 2.70 - 3.20 1.80 - 2.50 Q1 2011 3.60 - 4.50 3.70 - 4.00 2.70 - 3.50 2.70 - 3.00 2.80 - 3.50 2.60 - 3.40 2.70 - 3.20 1.80 - 2.70 Q2 2011 3.80 - 4.50 3.90 - 4.20 2.70 - 3.50 2.70 - 3.00 2.90 - 3.50 2.80 - 3.40 2.90 - 3.20 2.40 - 2.70

Source: Cushman and Wakefield Research. Note: Values are average prices for the respective areas. Pricing will differ based on the construction quality, developer profile and amenities available. The above values for mid range typically include units of 1,200-1,600 sq.ft.

The second quarter has recorded fewer new launches as compared to the previous quarter. This can be attributed to the fact that the developers are contemplating on their forthcoming launches post the new regulation by the government. The regulation (G.O.No.45) by the state government mandates allocation of 20% of the developed land to economically weaker sections and low income groups. This is likely to affect the pricing and overall proposition of the projects. New launches in medium and affordable segments in key locations such as Bowenpally, Sainikpuri and Padmarao Nagar have received a positive response from prospective buyers. Continued demand in the inner city locations as well the attention received by these new residential projects by Shanta Sriram Constructions and Janapriya Engineers Syndicate may attract more developers into such locations. Kukatpally and its immediate surroundings regain their prominence in the city residential market. New malls, several premium and medium segment residential projects are underway. Continued retail development and upcoming metro rail corridor have lead to a significant value addition. Several under construction projects both in the premium and medium segments have witnessed value appreciations between 5-7% during the last quarter.

13

Premium Ready Residential Property Values in June 2011

Price (INR/sft) June 2011

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

4,400 3,600

Aparna Sarovar
Source: Cushman & Wakefield Research.

Aparna Palm Meadows

New Launches* & Under-Construction Update

The residential market witnessed a launch of seven projects totalling up to 1,000 units during the second quarter of 2011. Majority of them are located in the vicinity of Secunderabad and in peripheral locations such as Gajularamaram and Tellapur. Nearly 40% of these new developments include luxury housing and villas with projects such as Richmond villas and Infiniti Homes indicating a latent demand for premium housing. Established residential locations such as Kukatpally, Gachibowli, Kondapur as well as the upcoming locations such as Tellapur, Ameenpur and Gopanpalli have witnessed healthy construction activity on the whole. Developers are looking for timely execution of the existing projects while taking up a focused approach in launching new residential projects. Though overall progress of the apartment projects is encouraging, several villa projects are in various stages of construction as their demand is slightly at a lower end over the past few months.

New Launches*

Padmanabha Residency (Padmarao Nagar, Secunderabad) Shanta Sriram Constructions - Apartments

Infiniti Homes (Tellapur, Hyderabad) Vision Avenues - Villas

14

Richmond Villas (Hyderguda, Hyderabad) Keerthi Estates - Apartments

Urban One (Gajularamaram, Hyderabad) NCC Urban Infrastructure Ltd. - Apartments

*This is not an exhaustive list.

Under-Construction Update
Projects such as Lodha Bellezza, a premium housing venture in Kukatpally and Gowra Tulips, a medium segment project in Madhapur have recorded a slight appreciation in capital values. As they reach advanced stages of construction, growing interest from prospective buyers has resulted in a higher number of enquiries. Projects such as Prajay Megapolis and Ashoka Rainbow Vistas, located in the prime residential catchment of Kukatpally have received a good response from the end-users due to limited supply in the affordable to medium segment.

15

Kolkata
Market Overview
The second quarter of 2011 continued with the positive market sentiments of its previous quarter. Affordable and mid-end segment remained vibrant with increased transactions and launches. The trend is expected to continue for the next two quarters as well. All undergoing as well as new launches in the affordable and mid segment witnessed marginal appreciation in view of market demand. In view of consistent demand for ready properties and the ongoing low supply trend, prices for high-end properties will continue to see appreciation in the established locations. The newly elected state government is likely to take up initiative to finish the current infrastructure projects on time, majority of which are focused on increasing connectivity to the peripheral locations. This would add a significant value to the real estate developments in these emerging locations in the next few years. The flyover at Nagerbazar which ensures a smooth traffic flow to the peripheral locations and the Park Circus - Parama island flyover which is expected to act as a vital link between CBD & Northern part of KMA, are under construction. While East-West metro corridor is under-construction, Dumdum to Dakshineswar and its extension to Barrackpore are in the pipeline. Upon completion, these infrastructure projects are expected to fuel urban growth in the peripheries.

Trends & Updates

Ready Property Update
Kolkata remained vibrant with continued end-user demand, increased project launches and transactions during the second quarter of 2011. New project launches were reported in Rajarhat, Madhyamgram and Garia. Rajarhat continued to remain as a major hub for real estate activities while established locations such as South Central and South West witnessed consistent demand for ready properties in the high segment.

Average Capital Values High End (INR000/Sq.ft.)

Location South* South Central** South East South West Central East North East 2008 5.00 - 6.00 9.00 - 10.00 4.50 - 5.70 9.50 - 10.00 7.50 - 8.50 4.00 - 5.00 2.50 - 3.00 2009 4.80 - 5.90 8.50 - 9.60 4.50 - 5.70 8.60 - 9.80 7.20 - 8.10 4.00 - 4.70 2.40 - 2.90 Q1 2010 4.90 - 6.00 8.50 - 10.00 4.50 - 6.00 8.70 - 10.00 7.30 - 8.50 4.00 - 4.70 2.40 - 3.00 Q2 2010 5.30 - 6.50 9.50 - 11.50 4.50 - 6.30 8.90 - 11.50 7.50 - 9.00 4.00 - 4.80 2.40 - 3.40 Q3 2010 5.30 - 6.80 9.50 - 13.00 4.50 - 8.00 8.90 - 13.00 7.50 - 9.20 4.00 - 4.90 2.40 - 3.90 Q4 2010 5.30 - 6.80 9.50 - 13.00 4.50 - 8.00 8.90 - 13.00 7.50 - 9.20 4.00 - 4.90 2.40 - 3.90 Q1 2011 6.00 - 8.00 9.50 - 14.00 5.00 - 08.50 10.00 - 12.00 7.80 - 9.50 4.20 - 5.00 2.60 - 4.20 Q2 2011 6.30 - 8.00 10.00 - 17.00 5.80 - 9.20 10.00 - 15.00 8.30 - 10.20 4.50 - 5.30 2.80 - 4.50

Source: Cushman and Wakefield Research. Note: The above values for high segment typically include units of 2,000-4,000 sq.ft.

Average Capital Values - Mid Ranged (INR000/Sq.ft.)

Location South* South Central** South East North East North 2008 2.80 - 4.30 4.50 - 5.50 2.50 - 3.00 1.80 - 2.20 1.80 - 3.50 2009 2.70 - 3.90 4.20 - 5.30 2.40 - 2.80 1.90 - 2.20 1.80 - 3.40 Q1 2010 2.90 - 4.00 4.30 - 5.40 2.40 - 2.90 2.00 - 2.20 1.90 - 3.50 Q2 2010 3.20 - 4.50 4.50 - 5.80 2.40 - 3.20 2.00 - 2.30 2.00 - 3.70 Q3 2010 3.20 - 4.50 4.50 - 6.00 2.50 - 3.30 2.20 - 2.70 2.20 - 4.70 Q4 2010 3.20 - 4.50 4.50 - 6.00 2.50 - 3.20 2.20 - 2.70 2.20 - 4.70 Q1 2011 3.20 - 5.00 5.00 - 7.00 2.70 - 4.00 2.30 - 2.80 2.30 - 4.80 Q2 2011 3.80 - 5.50 5.50 - 7.20 2.80 - 4.50 2.40 - 3.00 2.80 - 5.20

Source: Cushman and Wakefield Research. Note: The above values for mid segment typically include units of 1,600-2,000 sq.ft.

16

 With the improved IT/ITeS job market, Rajarhat witnessed a price escalation of 7% in high-end segment and 6% appreciation in mid ranged projects compared to last quarter. The market also reported increased transactions in large format projects like DLF New Town Heights and Uniworld City. Peripheral locations such as Madhyamgram and Garia with affordable land prices and improved infrastructure facilities have witnessed new project launches by the local developers. Existing projects in these locations have also recorded increased transactions in the second quarter. Due to its proximity to Salt Lake sector V and the infrastructural developments, EM Bypass witnessed almost 38% year-over-year price appreciation for ready properties in the high segment and 30% year-over-year appreciation for ready properties in mid range projects. The location also recorded 2-5% price appreciation during the quarter in select under-construction projects such as Urbana and Ideal Niketan. Established areas like South West and South Central have witnessed 14% and 15% quarter-on-quarter price appreciation in the high-end segment. This can be attributed to the increasing demand and limited supply of new residential units in several key locations.

Premium Ready Residential Property Values in June 2011

18,000 16,000 14,000 12,000 10,000 9,000 8,000 6,000 4,000 2,000 0 7,800 5,800 7,200 5,750 3,800 5,000 3,600 5,900 7,200

Price (INR/sft)

17,000

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Source: Cushman & Wakefield Research

Key to Locations:
South*: Southern Avenue, Dover Lane South Central*: Ballygunge, Queens Park, Rainy Park, Gurusaday Road, etc. South East: EM Bypass South West: Alipore Park Road, Ashoka Road, Belvedere Road, etc. Central: Lansdowne, Park Street East: Salt Lake North East: Rajarhat South**: New Alipore, Golf Green,Tollygunge, etc. South Central**: Hindustan Park North: Kankurgachi, Lake Town, Jessore Road, Ultadanga, etc.

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17

New Launches* & Under-Construction Update

Kolkata residential market witnessed a few new launches in the affordable and mid segment during the second quarter. Sale values of most of these newly launched residential projects ranged between INR 1,800 and 3,500 per square feet.

New Launches*

Dream Pallazzo (Narainpur, Rajarhat) Jain Group - Apartments

Swarnamani (EM Bypass) Mani Group - Apartments

4-Sight Florence (Mahamayapur, Garia) Ganguly Group - Apartments

*This is not an exhaustive list.

Under-Construction Update
Construction across projects in locations such as EM Bypass and Rajarhat is going in full swing, with developers aiming to deliver projects on time. Projects such as DLF New Town Heights and Uniworld City, Shrachi Rosedale in Rajarhat, Merlin Cambridge in Prince Anwar Shah Road, Tirumani in Ballygunge and Diamond Glory in Ultdanga are at advanced stages of construction.

18

Mumbai
Market Overview
With the recent increase in lending rates, end-users will be forced to re-evaluate their purchase decisions resulting in restrained transaction activity in the near future. However, in spite of a drop in demand, some developers may be forced to raise capital values due to an increase in the cost of funds and raw materials. Additionally, with several corporate going on a hiring spree, the city is expected to witness an improvement in rental demand from senior management professionals. In a bid to improve the traffic situation, the Mumbai Metropolitan Region Development Authority (MMRDA) is planning to build a tunnel from the Bandra-Kurla Complex (BKC) to the Western Express Highway (WEH). The proposed project is aimed at easing the traffic congestion on one of the most congested roads in the city, where four major roads converge. The Brihanmumbai Municipal Corporation (BMC) has proposed a new guideline allowing developers to build an extra 25% above the sanctioned Floor Space Index (FSI) in residential projects and 15% additional built-up area for commercial projects, for which developers will be charged a 100% premium. This proposed new guideline is aimed at ending misuse of certain spaces within a project like flower beds, balconies, car decks, etc, which at present are not counted in the FSI. However, many builders sell them off to the flat buyer and encourage them to amalgamate these spaces into their living area.

Trends & Updates

Ready Property Update
During the second quarter of 2011, Mumbais residential market continued to witness a slowdown in transaction activities. Inflationary pressures along with continued increase in home loan interest rates over the last six to nine months have impacted affordability, particularly amongst mid-range end-users. Moreover, with inventory levels increasing, many end-users have adopted a wait and watch approach in anticipation of some correction in property prices in the near future. Additionally, cautious lending to the real estate sector by several banks and adherence to stringent compliance norms put across by regulatory authorities has restrained new project launches in the city. Capital values largely remained stable over the quarter with exception of South Mumbai which witnessed some marginal appreciation in the high-end segment. The precinct emerged as a preferred choice for high net-worth end-users owing to its opulent neighbourhood and established social infrastructure. However, while demand for under construction projects in the micro market was restrained, apartments in existing premium buildings witnessed buoyant demand from end-users. This can be attributed to comparatively lower apartment cost coupled with availability of larger usable space and low overheads in existing buildings as compared to under-construction projects.

Average Capital Values - High End (INR000/Sq.ft.)

Location South South Central Central North Far North North East 2008 43.00 - 55.00 47.00 - 67.00 33.00 - 53.00 27.00 - 31.00 9.00 - 13.00 14.00 - 18.00 2009 42.50 - 58.00 42.00 - 66.00 34.00 - 55.00 22.00 - 30.00 10.00 - 16.50 10.00 - 16.00 Q1 2010 42.50 - 58.00 42.00 - 66.00 34.00 - 55.00 22.00 - 30.00 10.00 - 16.50 10.00 - 16.00 Q2 2010 43.00 - 60.00 45.00 - 70.00 35.00 - 55.00 24.00 - 31.00 11.00 - 16.50 10.00 - 16.00 Q3 2010 43.00 - 60.00 45.00 - 70.00 35.00 - 55.00 24.00 - 31.00 11.00 - 16.50 10.00 - 16.00 Q4 2010 43.00 - 60.00 45.00 - 70.00 35.00 - 55.00 24.00 - 32.00 11.00 - 16.50 10.00 - 16.00 Q1 2011 43.00 - 60.00 45.00 - 70.00 35.00 - 55.00 24.00 - 32.00 11.00 - 16.50 10.00 - 16.00 Q2 2011 45.00 - 65.00 45.00 - 75.00 35.00 - 55.00 24.00 - 32.00 11.00 - 16.50 10.00 - 17.00

Source: Cushman and Wakefield Research. Note: High End - Approximately 2500 sq.ft. to 6000 sq.ft. for South, South Central, Central and North (Bandra & Khar) - Approximately 1800 sq.ft. to 4000 sq.ft. for North (Santacruz & Juhu), Far North and North East

19

Average Capital Values - Mid Ranged (INR000/Sq.ft.)

Location South South Central Central North Far North North East 2008 27.00 - 34.00 34.00 - 43.00 18.00 - 28.00 13.50 - 19.50 7.00 - 9.00 6.00 - 7.40 2009 28.00 - 37.00 35.00 - 45.00 15.00 - 26.00 16.00 - 24.00 8.50 - 11.50 6.40 - 8.50 Q1 2010 28.00 - 38.00 36.00 - 46.00 15.50 - 27.00 16.00 - 24.00 9.00 - 12.00 6.50 - 8.50 Q2 2010 30.00 - 40.00 40.00 - 48.00 15.50 - 30.00 16.00 - 24.00 9.00 - 12.00 6.50 - 8.50 Q3 2010 30.00 - 40.00 40.00 - 48.00 15.50 - 30.00 16.00 - 24.00 9.00 - 12.00 6.50 - 8.50 Q4 2010 30.00 - 40.00 40.00 - 48.00 15.50 - 30.00 16.00 - 24.00 9.00 - 12.00 6.50 - 8.50 Q1 2011 30.00 - 40.00 40.00 - 48.00 17.00 - 30.00 16.00 - 25.00 9.00 - 12.00 6.50 - 8.50 Q2 2011 30.00 - 40.00 40.00 - 48.00 17.00 - 30.00 16.00 - 25.00 9.00 - 12.00 7.00 - 8.50

Source: Cushman and Wakefield Research. Note: Mid Range - Approximately 1400 sq.ft. to 2500 sq.ft. for South, South Central, Central and North - Approximately 1200 sq.ft. to 1600 sq.ft. for Far North and North East

Even while Mumbai recorded a slowdown in transaction activities, capital values in the city largely remained stable. Most under-construction projects were observed to maintain their price points as quoted in the first quarter of 2011. Developers are expecting an improvement in demand during the festive season in the fourth quarter of 2011 and have held on to the current values. However, a few near completion projects saw some moderation of prices in secondary market where investors are looking out to exit the project post its completion. South and South Central Mumbai continue to witness buoyant demand in high-end segment owing to its location attractiveness, affluent neighbourhood and well established social infrastructure. However, with scarcity of land parcels for real estate developments, the precinct has witnessed developers buying old bungalows and buildings for redevelopment over the last three to six months. End-users exhibited an increased preference for ready to move in projects or apartments in secondary sales due to the uncertainty on timely completions of under-construction projects.

Premium Ready Residential Property Values in June 2011

Price (INR/sft)
40,000 30,000 20,000
14,000 28,000 36,000 36,000

10,000 0

10,000

Ashok Towers

RNA Mirage

Orchard Residency Phase 1

Lodha Bellissimo

Source: Cushman & Wakefield Research

Key to Locations:
South: Colaba, Cuffe Parade, Nariman Point, Churchgate, etc. South Central: Altamount Road, Carmichael Road, Malabar Hill, Napean Sea Road, Breach Candy, Pedder Road, etc. Central: Worli, Prabhadevi, Lower Parel/ Parel North: Bandra (W), Khar (W), Santacruz (W), Juhu, etc. Far North: Andheri (W), Malad, Goregaon, etc. North East: Powai

Oberoi Splendor

20

New Launches* & Under-Construction Update

Continuing the trend of previous quarter, Mumbai witnessed limited new project launches in the second quarter of 2011. Slowdown in demand coupled with liquidity concerns faced by many developers and strict adherence to regulatory norms put across by regulatory authorities has restricted new project launches in the city during the second quarter of 2011. However, a few developers launched new projects catering to mid range segment along the eastern and western suburbs of the city. Whispering Towers Phase 2 (Mulund) and RNA Regal (Kandivali) are amongst the most significant projects launched in the city during second quarter of 2011. Timelines of many under-construction projects in the city are likely to be rescheduled owing to the liquidity concerns faced by many developers and slowdown in demand from both end-users as well as investors.

New Launches*

Ackruti - Sunstone (Bandra East) Ackruti Creations Group Apartments - Apartments

*This is not an exhaustive list.

21

National Capital Region

Market Overview
Moderate increase in values is anticipated in ready to move segment across Delhi locations in the coming quarters due to persistent demand. Pricing of new projects in the suburbs will be key determinant of demand in wake of increasing interest rates and upcoming festive season in the next quarter. The upcoming infrastructure developments such as the rapid metro, ongoing work of the northern and southern periphery road are likely to improve connectivity and aid commercial and residential developments in the suburban locations. The southern periphery road construction is underway which would be passing through the HUDA sector 56 to Badshahpur road, Kherki Dhaula and finally National Highway 8. This will enable new commercial and residential developments in the nearby sectors and is likely to escalate the prices gradually. The planned elevated road from Film City flyover in Sector-16 to Atta Market underpass is likely to decongest the stretch during peak hours. The work is planned to begin in the third quarter of the year and is expected to improve the connectivity to sectors adjacent the market.

Trends & Updates

Ready Property Update
The property prices in the region continue to go northwards. Overall, the market saw an increase up to 10% over the quarter across the region. Notably, the suburban location - Gurgaon (high-end segment) has witnessed a new high as property prices have increased at a CAGR of 22% in last three years owing to buoyant demand due to strengthening infrastructure, nature of residential developments, proximity to the airport, existing and upcoming commercial developments. In contrast, Noida saw a moderate increase of 4% during the same period due to lack of participation by private developers during the said period. However, over the quarter Gurgaon and Noida saw an increase up to 5% over the quarter.

Average Capital Values - High End (INR000/Sq.ft.)

Location South West South East South Central Central Gurgaon Noida 2008 28.00 - 33.00 19.00 - 23.00 20.00 - 23.00 45.00 - 50.00 5.20 - 11.00 5.20 - 6.20 2009 29.00 - 34.00 21.00 - 24.00 21.00 - 25.00 40.00 - 45.00 5.30 - 12.50 5.20 - 6.50 Q1 2010 30.00 - 35.00 21.00 - 25.00 22.00 - 25.50 40.00 - 45.00 6.00 - 15.00 5.30 - 6.70 Q2 2010 30.50 - 35.50 21.50 - 25.50 23.00 - 26.00 40.00 - 45.00 6.00 - 15.00 5.40 - 6.80 Q3 2010 36.00 - 43.00 24.00 - 30.00 25.00 - 32.00 50.00 - 57.00 6.20 - 18.00 5.50 - 7.00 Q4 2010 36.00 - 43.00 24.00 - 30.00 25.00 - 32.00 50.00 - 57.00 6.20 - 18.00 5.50 - 7.00 Q1 2011 36.00 - 45.00 24.00 - 30.00 25.00 - 35.00 50.00 - 60.00 7.50 - 20.00 5.50 - 7.00 Q2 2011 40.00 - 47.00 25.00 - 32.00 27.00 - 40.00 50.00 - 60.00 8.50 - 21.00 5.50 - 7.50

Source: Cushman and Wakefield Research. Note: The above values for high segment typically include units of 2,000-4,000 sq.ft.

Average Capital Values - Mid Ranged (INR000/Sq.ft.)

Location South East South Central Gurgaon Noida 2008 14.00 - 16.00 18.00 - 20.00 3.80 - 5.20 3.00 - 4.50 2009 14.50 - 16.50 18.50 - 20.50 4.00 - 6.50 3.20 - 5.50 Q1 2010 15.00 - 17.50 18.50 - 20.50 4.20 - 7.00 3.30 - 5.60 Q2 2010 15.00 - 17.50 18.50 - 20.50 4.20 - 7.00 3.30 - 5.60 Q3 2010 15.00 - 17.50 18.50 - 20.50 4.20 - 7.00 3.30 - 5.60 Q4 2010 15.00 - 20.00 20.00 - 23.50 4.50 - 7.50 3.80 - 5.60 Q1 2011 15.00 - 22.00 20.00 - 25.00 4.80 - 8.50 4.00 - 5.60 Q2 2011 15.00 - 25.00 22.00 - 27.00 5.00 - 9.00 4.20 - 5.80

Source: Cushman and Wakefield Research. Note: The above values for mid segment typically include units of 1,600-2,000 sq.ft.

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 Most of the locations across Delhi has seen steady increase in capital values due to improved demand and limited options. The values have increased by 10% over the quarter, with highest appreciation noted in South Central followed by South East locations. Rising interest rates and anticipation of softening of price have resulted in moderate property sales of the newly launched projects. However, the sales volume recorded remained healthy during the quarter in contrast to last six months. Although, sales in Noida across few pockets were stressed owing to the land acquisition controversy in the region. Demand in the suburban locations namely Gurgaon and Noida is driven by both investors and end-users since the market has depicted an upturn reflected by the rising property prices and sustainable demand.

Premium Ready Residential Property Values in June 2011

14,000 12,000 10,000 8,000 6,000 4,000 2,000 11,750 9,000 9,750 9,500

Price (INR/sft)

ITC Laburnum

Uniworld Spa

Richmond

Tatvam Villas

Source: Cushman & Wakefield Research

Key to Locations:
High Segment South West: Shanti Niketan, Westend, Anand Niketan, Vasant Vihar South East: Friends Colony East, Friends Colony West, Maharani Bagh, Greater Kailash - I, Greater Kailash II South Central: Defence Colony, Anand Lok, Niti Bagh, Gulmohar Park, Hauz Khas Enclave, Safdarjung Development Area, Mayfair Gardens, Panchsheel Park, Soami Nagar, Sarvodaya Enclave Central: Jorbagh, Golf Links, Amrita Shergil Marg, Aurangzeb Road, Prithviraj Road, Sikandara Road, Tilak Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar, Nizamuddin, Tees January Marg, Chanakyapuri Mid Segment South East: New Friends Colony, Kalindi Colony, Ishwar Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave South Central: Uday Park, Green Park, Saket, Asiad Village, Geetanjali Enclave, Safdarjung Enclave, Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar

New Launches* & Under-Construction Update

The suburban locations continued to see new launches in the second quarter. Most of the new launches were successive phases of the existing projects which were launched at a higher price with value-add features. The residential prices on the upcoming southern peripheral road connecting to the National Highway 8 has noted appreciation over few months with several developers such as Unitech, IREO and Raheja to name a few launching projects in the range of 4,000 4,800 per square feet. This location holds potential with enhanced connectivity to the National Highway 8, Manesar and Dwarka. Also, Dwarka expressway has attracted interest from the mid income group where several developers such as Spire, Ramprastha, Era Group and Raheja had launched their projects in the range of 2,600 3,000 per square feet. As the prices soar in upcoming locations of Gurgaon such as Golf course extension, sector 70 and sector 78, buyers have shown increased interest in this alternate location during the last six months. Connectivity to Delhi, Gurgaon, Manesar and proximity to airport has aided the interest of buyers in this location.
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New Launches*

Vatika India Next Floors (Sector 82, 82A, 83, 84, and 85, Gurgaon) - Vatika Group - Floor

Raheja Atlantis II (Sector 78, Gurgaon) The Raheja Group - Apartments

Palm Gardens (Sector 83, Gurgaon) Emaar MGF Land Limited - Apartments

Emerald Floors Premier (Sector-65, Urban Estate, Gurgaon) Emaar MGF Land Limited - Floors

Tata Primanti (Sector 72, Gurgaon) Tata Housing - Floors and Apartments

*This is not an exhaustive list.

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Under-Construction Update
Select under-construction projects in Gurgaon in locations of Phase V, Golf course extension road and Noida such as the expressway have seen marginal escalation in prices during the quarter. The construction schedules have been sluggish due to the monsoon season and are likely to accelerate by end of August. The projects that are nearing completion with certain towers witnessing finishing work such as the Unitechs - Harmony, BPTPs - Park Life, Clarions - The Legend, to name a few, have seen increased enquiries from end-users.

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Pune
Market Overview
Developers are anticipating increased sales activity in the near future, which is likely to result in more launches in the next 3 to 6 months. However, lower conversions from enquiries will force the developers to maintain prices at similar levels. The residential precinct of Kharadi is likely to witness an infusion of residential apartments for its close proximity to the commercial hub of Hadapsar. The real estate demand in Pune is driven by the IT/ITeS sector, which has also been imperative to the development of infrastructure in the city. A host of infrastructure facilities are supposed to come up in the coming years, which is likely to appreciate the capital values for certain residential precincts. Some of the initiatives are as follows: The Pune Chinchwad Municipal Corporation (PCMC) has invited bids for construction of flyover at Dange Chowk at Thergaon. The construction is likely to start in July and is expected to be completed in 18 months. The precinct of Dange Chowk is likely to witness an infusion of residential apartments with completion of flyover. The Phase I for the construction of flyover at Dhayari Junction on Sinhgad Road has been completed. In the next 18 months, the last 1200 meter stretch of Sinhgad Road will be constructed as a four lane cement concrete road. The Pune Municipal Corporation (PMC) has awarded the construction of flyover at Kharadi Junction on Nagar Road, which will ease the traffic flow in Nagar Road to a great extent. The residential precinct of Kharadi is likely to witness an appreciation in values after the construction gets completed.

Trends & Updates

Ready Property Update
The micro markets of Pune, including Koregaon Park, Aundh, Kalyani Nagar, Wanowrie and Kharadi/Hadapsar remained stable with no fluctuation in the capital values for second quarter of 2011. However, residential precincts of Baner and Wakad witnessed a marginal appreciation in capital values in mid-segment owing to its close proximity to the commercial hub of Hinjewadi, as well as influx of various IT/ITeS companies in the same precincts. The second quarter of 2011 saw a couple of projects being completed and handed over in the suburban and peripheral locations of city. These projects catered to both the high-end and mid-end segments of Pune. Some of the residential projects included Namrata Flora City (Namrata Group) at Talegaon, Forest Trails (Paranjape Schemes) at Kothrud, Lotus Sanskruti (Lotus Group) at Kiwale, Vision City (Siddhivinayak Group) at Jambulgaon, Shree Vardhaman Nagar (A.K. Surana Estates) at Market Yard Annexe, Pinnacle Brookside (Pinnacle Group) at Bavdhan, Chaitanya Platinum (Chaitanya Developers) at Balewadi, Empress Towers (Devi Construction) at Sopanbaug and Song of Life County (Runwal Housing) at Pirangut.

Average Capital Values - High End (INR000/Sq.ft.)

Location Koregaon Park, Bundh Garden Aundh Kalyani Nagar Wanowrie 2008 9.60 - 12.70 4.90 - 6.10 7.60 - 9.60 3.40 - 4.50 2009 8.50 - 10.70 5.00 - 5.20 7.30 - 9.20 3.30 - 3.60 Q1 2010 8.50 - 12.50 5.00 - 5.50 7.30 - 10.50 3.30 - 4.20 Q2 2010 8.50 - 12.50 5.00 - 5.50 7.30 - 10.50 3.30 - 4.20 Q3 2010 9.00 - 13.00 5.00 - 5.50 8.00 - 12.00 4.00 - 5.00 Q4 2010 9.00 - 13.00 5.00 - 5.50 8.00 - 12.00 4.00 - 5.00 Q1 2011 9.00 - 13.00 5.00 - 6.00 8.00 - 12.00 4.00 - 5.00 Q2 2011 9.00 - 13.00 5.00 - 6.00 8.00 - 12.00 4.00 - 5.00

Source: Cushman and Wakefield Research. Note: The above values for high segment typically include units above 1,500 sq.ft.

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Average Capital Values - Mid Ranged (INR000/Sq.ft.)

Location Koregaon Park, Bundh Garden Aundh Baner Wakad Kalyani Nagar Wanowrie 2008 4.50 - 5.00 3.50 - 4.00 3.00 - 3.80 2.50 - 3.00 4.50 - 5.50 3.00 - 3.20 2009 4.50 - 5.50 3.60 - 4.20 2.90 - 3.60 2.20 - 2.80 4.50 - 5.50 2.80 - 3.10 Q1 2010 4.50 - 5.50 3.60 - 4.50 3.00 - 4.00 2.40 - 3.00 4.50 - 5.50 3.00 - 3.20 Q2 2010 4.50 - 5.50 3.60 - 4.50 3.00 - 4.00 2.40 - 3.00 4.50 - 5.50 3.00 - 3.20 Q3 2010 4.50 - 6.00 4.00 - 5.00 3.00 - 4.00 2.60 - 3.40 5.00 - 6.00 3.00 - 3.80 Q4 2010 6.00 - 7.00 4.00 - 5.00 3.50 - 5.50 3.50 - 4.00 6.50 - 7.00 4.00 - 5.50 Q1 2011 6.00 - 7.00 4.50 - 5.50 3.80 - 5.50 3.50 - 4.20 6.50 - 7.50 4.00 - 5.50 Q2 2011 6.00 - 7.00 4.50 - 5.50 4.00 - 5.50 3.80 - 4.40 6.50 - 7.50 4.00 - 5.50

Source: Cushman and Wakefield Research. Note: The above values for mid-segment typically include units of 900-1,500 sq.ft.

Pune witnessed an infusion of approximately 2,000-2,500 residential units in the second quarter of 2011. The residential units catered to both high-end and mid-end segments of the city. The micro market of Baner witnessed a marginal appreciation of 4% in capital values with respect to the values in first quarter of 2011. Owing to its close proximity to the airport, Koregaon Park, Kalyani Nagar, Viman Nagar and Ranjangaon, the residential precinct of Kharadi is likely to witness an upward movement in capital values in future. The improvement in infrastructure involving revamping of roads, water supply and infrastructure, including construction of Kharadi-Mundhwa Road has led to an increase in demand for apartments in the residential precinct of Kharadi. Locations like Pimpri-Chinchwad and Wagholi, which were considered to be industrial and warehousing belts, have started to be viewed as new residential locations with an advantage of pricing over other established locations in and around centre of the city. Tightening bank lending and declining sales have compounded the trouble for property developers. A few developers have shown flexibility in prices amidst increased enquiries to improve sales.

Premium Ready Residential Property Values in June 2011

Price (INR/sft)

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Marvel Enigma Rohan Ishita Kumar Picasso Kumar Palmgroves 4,500 4,200 4,000 3,700

7,500 6,000

Clover Belvedere

Clover Acropolis

Source: Cushman & Wakefield Research

New Launches* & Under-Construction Update

In the second quarter of 2011, Punes residential market witnessed an increase in enquiries coupled with renewed momentum in construction activity. The residential market witnessed new project launches in suburban and peripheral locations of Kondhwa, Hinjewadi, Wakad, Chinchwad and Phursungi. The projects were launched with pricing levels similar to the ones launched in the previous quarter.

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New Launches*

Sobha Garnet (Kondhwa) Sobha Developers Limited - Apartments

Xotech (Hinjewadi) Vascon Engineers - Apartments

Kalpataru Harmony (Wakad) Kalpataru - Apartments

Queenstown (Chinchwad) Mindspace Realty Pvt Ltd - Apartments

Kumar Infinia (Phursungi) Kumar Properties - Apartments

*This is not an exhaustive list.

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Under-Construction Update
With an anticipated increase in transaction activities, residential projects like Latitude and The Balmoral Estate are geared up for possession in 2012. Some of the other residential projects under-construction include Arco, Tuscan, Ivy Estates, Park Springs, Windermere and Park Titanium. The projects are coming up in the residential precincts of Wakad, Dhanori, Kharadi, Koregaon Park and Magarpatta Road. The pricing levels for the projects are in the similar range as in the previous quarter.

This research report has been prepared by Cushman & Wakefield specially for distribution to Citibank customers.

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