DELHI NCR RESIDENTIAL REAL ESTATE OVERWIEW NOVEM OVEMBER 2013

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1 DELHI NCR RESIDENTIAL REAL ESTATE OVERWIEW NOVEM OVEMBER

2 TABLE OF CONTENTS 1. Executive Summary 3 2. City Fact File 5 3. Major Infrastructural Developments 9 4. Real Estate Overview Delhi Gurgaon Sohna Dharuhera Bhiwadi Noida Greater Noida Location Attractiveness Index Disclaimer 41 2

3 EXECUTIVE SUMMARY The Delhi NCR Residential Real Estate Overview-October 2013 provides a comprehensive insight into the key trends that have emerged in the residential markets of Delhi NCR and certain up-and-coming peripheral locations. The report is an outcome of a rigorous city survey conducted by ICICI Home Finance Company. Some of the key findings are mentioned below: Delhi NCR markets that had remained resilient during the global economic slowdown of , are currently undergoing a trough phase in the real-estate market cycle. The market in terms of real estate transactions has been slow, with the conversion to enquiry ratio reduced over the last one year. This slowdown is largely owing to a mix of factors such as feeble macro-economic scenario, upcoming political elections, weak investor sentiments and perceived high price points. Yet, the primary markets have not witnessed any downward correction in prices. The Delhi NCR region has been witnessing a host of infrastructural developments which are expected to create a positive impact to the overall market scenario. While the prestigious projects such as DMIC (Delhi Mumbai Industrial Corridor) and KMP Expressway (Kundali-Manesar-Palwal Expressway) are expected to trigger the economy and hence the real estate markets, umpteen projects have been undertaken to improve the inter/intra-city connectivity. Despite the delay in completion timelines for most of these projects, we expect significant benefits reaping through these post completion. Delhi residential real estate markets continue to witness huge re-development activity through builder collaboration. Certain category-a locations have witnessed declining transaction volumes because of multiple and significant increases in the circle rates, in the recent past. These markets that saw prices almost double over the last three years; have recently witnessed a slow down to the extent of 15-20%. Demand for properties has witnessed a drop on account of weak economic scenario and hardened interest rates. Prices in the primary residential real estate markets of Gurgaon is likely to stagnate in the short run owing to the slow pace of inventory off take. Buyers are maintaining a cautious stance with regards to the high prices and are increasingly shifting their focus to the secondary markets that have recently witnessed minor price corrections. However, as stated in the previous survey, prices in the long run are expected to trend up owing to the increasing cost of construction coupled with the imminent infrastructure developments in the city. The Gurgaon real estate markets have traditionally been heavily investor driven. However, during the survey, it emerged that investors are holding on to their real estate investments for a relatively longer tenure as exit options have not been easy. It was evident that buyers on the investor-driven and heavy inventory-based Dwarka Expressway belt are finding it tough to exit. This keen-ness to exit coupled with high prices in the primary markets have led to price corrections in the secondary markets of certain pockets. Certain peripheral locations of Gurgaon such as Sohna, Dharuhera and Bhiwadi have witnessed healthy demand by buyers/investors. Sohna is an emerging city, adjoining Gurgaon with a separate Sohna master plan-2031 notified recently. The region is set to benefit from proximity and good connectivity with the prime locations of Gurgaon. Better connectivity with Delhi and Faridabad are also planned for future. Residential real estate is still nascent in the region; however, in near future this location is likely to cater to the spill-over demand from Gurgaon in addition to the local demand. The region should also benefit from the existing and planned industrial developments such as IMT Sohna and Ascendas IT SEZ. Dharuhera has emerged as an affordable real estate destination in NCR over the past few years. Residential demand has predominantly been from local end-users or investors from neighboring regions of NCR, seeking affordable options. The town benefits from its strategic location on NH-8, industrial development and good connectivity from Gurgaon and other neighboring regions. While absorption has dipped, property prices have witnessed an upward movement of approximately 15% Y-o-Y over the past two calendar years. Residential units available in this belt are priced in the average range of INR 1,700 3,500/sq.ft. 3

4 EXECUTIVE SUMMARY Bhiwadi is an industrial town and a part of Delhi NCR. RIICO (Rajasthan State Industrial Development and Investment Corporation) has been instrumental in the industrialisation of Bhiwadi, since The region is also a part of prestigious DMIC project. Market demand is largely driven by local and neighboring regions such as Manesar. Moreover, investor demand also comes from other regions in Delhi NCR and Rajasthan, as residential units in this belt are still affordable. During the current year s survey, it has been observed that the Noida markets seem to have entered a stagnation phase over the past six months as buyers are waiting to observe the manner in which the to be delivered inventory would behave over the next 1-2 years. The market still remains predominantly end user driven. Noida market is not witnessing many soft launches and builders are selling FSI to raise money. Greater Noida East and Greater Noida West (Noida Extension) markets have also witnessed significant price rise tracking the affordable prices and a slew of measures announced to safeguard homebuyer interests by CREDAI. 4

5 CITY FACT FILE Delhi City Delhi, the national capital of India, is situated in the northern part of the country and borders Uttar Pradesh to the east and Haryana on the north, west and south. The city is spread over an area of 1,483 square kilometers and 216 meters above sea level. Two prominent features of Delhi s geography are the Yamuna flood plains and the Delhi ridge. The lowlying Yamuna flood plains provide fertile alluvial soil, which is suitable for agriculture but the planes are prone to floods. However, the Delhi ridge forms a dominating feature in the region. It starts from the Aravalli Range in the south and encircles the west, northwest and northeast parts of the city. Hindon river separates Delhi from Ghaziabad. The city boasts of its historical importance from the fact that it has been home to the Mughal Empire. The famous poet Mirza Galib describes the city as `the world is body and Delhi it s soul. Delhi is also the political center of India. The name Delhi originates from the Persian word `Dahleez (threshold of frontier) or from the name of the Mauryan king, Raja Dhillu. Some historical literature also refers to the original name as `Dhillika. The satellite towns like Faridabad, Gurgaon and Noida collectively called the National Capital Region (NCR) surround Delhi. NCR was developed, as the city needed room to expand and bear the burden of the increasing growth and development in the region. Census 2011 Key Highlights Description Actual Population 16,753,235 13,850,507 Male 8,976,410 7,607,234 Female 7,776,825 6,243,273 Population Growth 20.96% 46.31% Sex Ratio (females per 1000 males) Area km2 1,483 1,483 Density/km2 11,297 9,340 Literacy Rate 86.34% 81.67% Male Literacy Rate 91.03% 87.33% Female Literacy Rate 80.93% 75.24% Total Literates 12,763,352 9,664,764 Male Literates 7,210,050 5,700,847 Female Literates 5,553,302 3,963,917 Source: Census

6 CITY FACT FILE Gurgaon City: Overview: Gurgaon, located to the south of New Delhi, is the industrial and financial centre of Haryana. This satellite city was recognised as a potential investment destination, especially after the liberalisation of the Indian economy in the 1990s, owing to its proximity to New Delhi and the smart policy initiatives of the Haryana government. Today, modern shopping malls and skyscrapers dot its landscape after a major realty boom post the late 1990s. Geographical Stretch: The Gurgaon district comprises five blocks: Badshahpur, Pataudi, Sohna, Gurgaon and Farrukhnagar. It is bounded by the district of Jhajjar and Delhi on its north, Faridabad district on the east and the district of Mewat in the south. On the west lie the district of Rewari and the state of Rajasthan. It is located at the northern edge of the Aravalli mountain ranges. Etymology: The origin of the city s name `Gurgaon is steeped in Hindu mythology. Gurgaon is considered as the ancestral village of Guru Dronacharya (or Drona), the martial art teacher of the Pandavas and the Kauravas in the epic Mahabharata. In the Sanskrit language, `Guru means teacher, which refers to Dronacharya and `Gram or `Gaon refers to village. According to Hindu mythology, the village was gifted by King Dhritarashtra of Hastinapur to Dronacharya and therefore was known as Guru-Gram. Over the years, the colloquial term `Gaon was substituted for `Gram and the name Gurgaon emerged. History: East India Company took control of Gurgaon city through a treaty signed by Surji Arjungaon in the year Later on, the British integrated Gurgaon into the Punjab province, where it remained as the district and tehsil headquarters. Following India s independence, Gurgaon was a part of Punjab until Haryana was formed as a separate state in In the initial years, Gurgaon remained a small farming village until the setting up of Maruti, an automotive company, which accelerated Gurgaon s growth story. Added to this, Delhi started witnessing a large influx of labourers from the neighbouring regions of Rajasthan, Orissa and Bihar. In the early 1990 s, as Delhi became crowded, the need for a satellite city became apparent. Hence, Gurgaon emerged as the next ideal choice owing to its vast undeveloped agricultural land and its close proximity to Delhi. Moreover, over time, the government s tax reforms, close proximity to the Delhi International Airport and the Delhi-Gurgaon expressway attracted huge investments into world-class buildings in Gurgaon. 6

7 CITY FACT FILE Census 2011 Key Highlights Description Actual Population 1,514, ,539 Male 817, ,504 Female 696, ,035 Population Growth 73.93% 44.15% Area Sq. Km 1,215 1,215 Density/km2 1, Proportion to Haryana Population 5.97% 4.12% Sex Ratio (females Per 1000 males) Child Sex Ratio (0-6 Age) Average Literacy 84.4% 78.5% Male Literacy 90.3% 88% Female Literacy 77.6% 67.5% Literates 1,111, ,135 Male Literates 639, ,165 Female Literates 471, ,300 Source: Census

8 CITY FACT FILE Noida: Overview: New Okhla Industrial Development Authority (NOIDA) constituted under the UP Industrial Area Development Act, 1976 is a planned, integrated, modern industrial city, well connected with Delhi through a network of national highways, roads and the DND flyover. NOIDA, spread over 20,316 hectares, is one of the largest planned industrial townships in Asia. Location: The township is located in the state of Uttar Pradesh. It is 14 km away from Connaught Place. Travel time to Noida has been further reduced by the ½ km long eight-lane NOIDA toll bridge across Yamuna connecting Maharani Bagh in Delhi to Noida. Noida is bound by the NH 24 by-pass in the North beyond which the Ghaziabad Development Authority starts, in the east by River Hindon beyond which the Greater Noida region starts, in the West by River Yamuna after which are the states of Delhi and Haryana. In the south, is the meeting point of the rivers Yamuna and Hindon. Industrial Area: In the year 2010, NOIDA earmarked roughly 710,000 sqm land for the different industries. There are roughly 6,014 manufacturing units operating out of this area. With an investment of INR billion, these industries provide employment to 94,736 people. The Noida Software Technology Park ranks second in the country in terms of export turnover. Noida Export Processing Zone (NEPZ), a 100% export oriented unit and the only land locked export processing zone in the country, houses industries like textiles, electronics, engineering, computer software etc. Roads: The NOIDA roads - NH2, Link Road, Kondli Road, Noida-Greater Noida Expressway, Noida-Agra-Mathura Expressway (under construction) and the DND flyover with the toll bridge already operational - provide easy access in and out of Noida. In the different sectors of NOIDA, the authority is maintaining 400 km long internal roads and 125 km long boundary roads, for the easy movement of the intra city road traffic. Planning: About 35.66% of Noida s area is being earmarked for residential development. In the decade ahead, Noida plans to acquire and develop 3,400 hectares of land, out of which 430 acres have been earmarked for residential, 620 hectares for commercial, 650 hectares for industrial and 200 hectares for institutional purposes. Another 300 hectares of land has been assigned for development of recreational purposes, which would include entertainment parks and cultural activities. 125 hectares of land would be utilised for road transport facilities. 8

9 MAJOR INFRASTRUCTURAL DEVELOPMENTS: The major infrastructural developments in Gurgaon are discussed as below, Dwarka Expressway: Dwarka Expressway, also known as the Northern Peripheral Expressway, when complete would be an eightlane expressway. It is being developed by the Haryana Urban Development Authority (HUDA) at a cost of INR 1.2billion. As part of the Gurgaon-Manesar Masterplan 2021 and 2025, the expressway would connect Dwarka to the National Highway 8 and is planned to have 30 meters of green belt on both sides. The proposed expressway shall stretch 18kms, starting from Dwarka, connecting Palam Vihar and would join Kherki Dhaula in the NH-8. It is expected to reduce the travel time from west Delhi by half. The new Terminal 3 of the Indira Gandhi International Airport would be accessible within a few minutes drive and it would also provide convenient accessibility to the commercial/hotel corridor being developed near the International airport. It would also be close to the 18-hole golf course proposed in Dwarka by the Delhi Development Authority. Apart from this, there is an extensive belt reserved for commercial development along the Dwarka Expressway. Kundli-Manesar-Palwal Expressway: Kundli Manesar Palwal expressway is popularly known as the Western Peripheral expressway. It shall run between Kundli and Palwal in Haryana. It measures 135.6km in length, crosses four national highways namely NH1 near Kundli, NH2 near Palwal, NH8 near Manesar, NH 10 near Bahadurgarh and the State Highway 13 (Gurgaon to Alwar). A flyover is being constructed at the junction point between the national highway and the expressway. Moreover, 143 underpasses and crossing passages are being constructed for vehicles and pedestrians at places where the expressway connects to villages and towns. Many major and minor bridges are proposed to be constructed at 292 locations across the expressway. Rapid Metro Rail Gurgaon: Rapid Metro Rail is an under-construction rapid transit system, set to improve connectivity in Gurgaon. The Rapid Metro will be the country s first Metro rail system developed on a public-private-partnership (PPP) model at the cost of approximately INR 1,100 Crore. The first phase is 5.5km long from the Delhi Metro s Sikanderpur station to DLF Phase III. It has six stations elevated network Sikanderpur, DLF phase II, Vodafone Belvedere Tower, IndusInd Bank Cyber City, Micromax Moulsari Avenue and DLF Phase III. A sky walk connects Delhi Metro platform to Rapid Metro platform at Sikanderpur. While the trial run of phase I commenced on October 02, 2012; the project has recently become operational. Moreover, civil works for the second phase from Sikanderpur to Sector has also begun. Rapid Metro s train frequency has been synchronised with Delhi Metro s so that waiting time is minimised. Ticketing system is same as that of Delhi Metro. As per market sources, approximately one lac commuters are expected to use this 5.5km line everyday. Source: Rapid Metro Rail Gurgaon official website, Media sources 9

10 MAJOR INFRASTRUCTURAL DEVELOPMENTS: Delhi Mumbai Industrial Corridor (DMIC): Delhi-Mumbai Industrial Corridor (DMIC) is a very ambitious Infrastructure programme in India, aiming to develop new industrial cities as "Smart Cities" and converging next generation technologies across infrastructure sectors. DMICDC (Delhi Mumbai Industrial Corridor Development Corporation Ltd.) envisages creating 24 new cities in the country by In the first phase 7 new industrial cities are being developed around the high-speed 1,483- km-long dedicated freight corridor (DFC), a fast-progressing railway network funded by the Japanese government. The deadline for the first phase is expected to be The vision for DMIC is to create strong economic base in this band with globally competitive environment and infrastructure to activate local commerce, enhance foreign investments, real-estate investments and attain sustainable development. The programme will provide a major impetus to planned urbanisation in India with manufacturing as the key driver. Once completed, the mega project is expected to generate 2.15 lac direct jobs and 6.18 lac indirect jobs in the country. Source: Economic Times 10

11 MAJOR INFRASTRUCTURAL DEVELOPMENTS: The programme has been conceptualized in partnership and collaboration with Government of Japan. The project covering an overall length of 1,483 km and costing approximately USD 100 billion is planned to have technical and financial aids from Japan. It would pass through the six States - U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, with end terminals at Dadri in the NCR and Jawaharlal Nehru Port near Mumbai. Source: DMIDC official website, media sources Noida-Greater Noida expressway The Noida Greater Noida expressway has been built at an estimated cost of INR 4billion and connects the townships of Noida and Greater Noida. The expressway has six lanes and is 25kms in length. It starts at Sector 15A of Noida and ends at the Alpha commercial belt in Greater Noida. Yamuna Expressway Yamuna Expressway which recently commenced operations is stretching over approximately 165 km along the Yamuna river connecting Noida and Agra. The principal objective of this expressway is to minimise travel time from Delhi to Agra, facilitate faster uninterrupted movement of passenger and freight traffic, connect the main existing and proposed townships and commercial centres on the eastern side of the Yamuna river, relieve traffic congestion on the National Highway-2 (which runs through the cities of Faridabad, Ballabgarh and Palwal) and on the Old Grand Trunk Road (National Highway-91). The expressway is intended to serve various commercial, industrial, institutional, amusement and residential projects, which are being developed. The first 40 kilometres are located in District Gautam Budh Nagar, passing Noida, Dhankaur, Mirzapur and Jewar, followed by 20 kilometres in District Aligarh, passing Tappal. The next 90 kilometres is located in District Mathura passing Nohjhil, Mat, Raya and Baldev, followed by approximately 15 kilometres in District Agra, with the expressway ending near Etmadpur, a village in District Agra. Faridabad-Noida-Ghaziabad corridor According to the initial plan, the corridor was supposed to be 56kms long and was supposed to connect the NH 24 near Ghaziabad and NH2, which connects Delhi to Agra, with 16kms of the corridor falling under the jurisdiction of the Noida authority. This link road begins at Chijarsi village near the NH 24 and passes through the sectors 142, 143B, 167 and ends at the Sadullapur village near sector 168. As per media reports, the Noida authority has expedited work on two bridges to be built across Yamuna river that is expected to improve the connectivity between Noida and Faridabad. The first bridge would connect Faridabad- Noida-Ghaziabad (FNG) expressway with Haryana in Faridabad. This bridge would be constructed in Noida s Sector 150. The other bridge is proposed to link Noida s Sector 168 with Faridabad s Badoli village. 11

12 REAL ESTATE Delhi Real Estate: Short Term months Upward bias in capital value Long Term months 10-15% 15% Y-o-Y Y Y appreciation in capital value with an upward bias on a conservative note The Delhi real estate market has showcased resilience during the slowdown. Residential real estate prices are expected to increase owing to the limited land supply available coupled with an increase in construction cost. According to the Delhi Master Plan 2021, the population pressure is expected to move up from 18.2 million in 2011 to 19.9 million in 2016 to 23 million in As indicated by the Delhi Master Plan 2021, the population density (only for Delhi National Capital Territory) is expected to move up to 225 persons per hectare in 2021 from persons per hectare (for Delhi NCR) as indicated in the Census 2011 data. Hence, significant demand is expected to hit this micro market, which shall support the upward movement in prices. Some of the key observations captured during our survey are as follows: Redevelopment projects predominant in Delhi This micro-market is witnessing a lot of redevelopment projects. There is heavy presence of independent villas and row houses. The concept of builder floors is also prevalent where the builder buys a piece of land, constructs a building and then sells the floors to independent buyers. These properties are available for resale and private builder presence is very limited. Delhi residential market is heavily end user driven (75%) This realty segment is largely end-user driven with 75% and 25% end-user and investor mix respectively. Most of the end users consist of businessmen and service class professionals. Improved transportation networks According to the Delhi Master Plan 2021, `greater efficiency and benefits through a unified metro transport authority is being targeted. The government does acknowledge the fact of increased vehicle density and hence is trying to rope in the private sector to develop parking facilities by developing multi-level and underground parking spaces. Substantial focus is on developing an integrated multi-modal public transport system, to reduce the pressure of private transport on the road. Moreover, there are plans to introduce cycle tracks, pedestrian and disabled friendly features in the arterial and sub arterial roads. What is Lal Dora land? The term `Lal Dora was used for the first time in the year It is a name attached to that part of the village land, which is a part of the village `Abaddi (habitation). It was meant to be used strictly for non-agricultural purposes only. It is that part of the land, which was supposed to have been an extension of the village habitation, wherein the villagers would have their support systems, livestock etc. In the olden days, the land revenue department would mark these areas by tying a red thread (Lal Dora in Hindi language) around it marking a boundary and to distinguish it from agricultural land. This land is exempted from the building byelaws and construction laws and regulations, as regulated under the Delhi Municipal Act. 12 Under the Delhi Master Plan 2021, the Lal Dora areas in some of the rural villages, which are surrounded by agricultural land, have been included. Most of them may boast of being well connected in the future through the proposed initiatives of the government for a maze of roads, expressways and metro points. New Growth Corridors: In order to cope with the burgeoning urbanisation in the city, the new draft master plan 2021 seeks to create urban extension area on the periphery of Delhi, which shall see massive developmental projects. The development of around 20,000-24,000 hectare land is expected to provide housing options to an approximate 48 lac people in Delhi by The DDA would develop the areas with the help of private builders under the

13 REAL ESTATE recently-approved Land Pooling Policy. As per DDA, the areas along the major transport corridors and fringes of already urbanised areas have been earmarked for the urban development. The housing development would be in the line of residential development in Dwarka and Rohini sub-cities. The policy proposes to carry out development in urban extension areas by involving private parties. The new sub-cities would be developed with all infrastructure and facilities. In the early phase, seven zones have been selected for the development. These zones viz. J, K1, K2, N, L, PI and PII would be spread across the city. For instance, if zone J is in south Delhi alongside NH 8, zone L will be developed in Najafgarh of west Delhi. Similarly, zone PI and P II are alongside the national highway I and zone N is beyond Rohini. Source: Secondary Market Sources Land Pooling Policy: This policy is expected to prevent selling of land without owner s consent and assure fundamental changes in the way of acquisition and development of land in Delhi. The first Master Plan of Delhi was formulated in The policy then of DDA was to acquire land parcels directly from private owners at a price determined by the DDA. DDA would then commence the master planning followed by developing/selling the land piece by piece. In 1960 s the private sector was not strong enough to bear the responsibilities of housing & urbanisation. When the land valuations were nominal, this process was acceptable. However, since 1980 s the private sector has increasingly started seeking a larger role. Moreover, in the past couple of decades, the demand surge of consumers made the supply in the government stable inadequate, and consequently majority of supply was created by the private sector. The land valuations rose phenomenally under this increased demand, as well as the higher spend and investment appetite. The government continued to rest on the provisions of the Land Acquisition Bill of 1894, which was seemingly unfair to the land owners from the compensation as well as rehabilitation perspective. With many instances that happened in West Bengal, Andhra Pradesh, Haryana, Noida, etc. it became evident that forceful acquisition cannot be a tenable and legal method. Also, the private sector sought a more free market methodology, as the government acquisition could pose a potential delay for projects. Hence, this land pooling policy. As per this policy, land owners can surrender their land holding into a central pool, and be a stake holder to the development proposed on their land. Once the land is pooled, land owners would get back 40-60% of total land surrendered as the developable land. Hence, the disputes on under-valuation of land for acquisition would be removed, while the process would seem fair to every land owner, irrespective of the size of their land holding. The 40-60% of land that DDA would retain with them would be utilised for creation of infrastructure as well as monetize it against specific purposes by DDA. There are two basic types of land pooling which have been announced so far Category-I: 20 hectares and above where 60% of land would be returned to the land owner. Category-II: 03 and 20 hectares, where about 40% of pooled land would be returned to the land owner. 13

14 REAL ESTATE But there s a rider: The developed land that owners will get back has to be used as per norms. For instance, for Category-I, 53% of net land has to be used for residential purposes; however for Category-II, 43% is meant for residential use. Delhi Master plan 2021 is touted to be the largest ever real estate opportunity in the country for the demographic demand. Delhi s master plan is designed to accommodate an additional population of 10 million people, as well as facilitate creation of almost 1.6 million dwelling units, and the land pooling policy is one of the many innovative methods towards the vision of this reality. Source: DDA Public Notice April 18, 2013 Gurgaon Short Term months Long Term months Stagnation in capital value 10-15% YoY appreciation in capital value with an upward bias on a conservative note Noida Short Term months Long Term months Upside in capital value 10-15% YoY appreciation in capital value with an upward bias on a conservative note Greater Noida and Noida Extension Short Term months Long Term months Upside movement in capital value 8-10% YoY appreciation in capital value with an upward bias on a conservative note Prices in the Gurgaon residential real estate market are expected to stagnate in the short run owing to the slow pace of inventory off-take. Buyers are maintaining a cautious stance with regards to the perceived high prices. However, as stated in the previous survey, residential real estate prices in the long run are expected to trend up owing to the increasing construction cost coupled with the imminent infrastructure developments in the city. Noida residential market has stagnated as buyers wait to observe the way in which the market is going to respond to the `to-be-delivered inventory. However, residential prices still remain in the affordable range (relative to Gurgaon). Prices are not expected to correct tracking the increased commercialisation along the Noida expressway, rising construction cost and dried-up launches in Noida (soft launches are only happening along the Yamuna Expressway and Greater Noida West). The opening up of the Yamuna expressway is also expected to infuse fresh demand from the `Mandis of Ghaziabad, Moradabad, Agra, Kanpur and Lucknow. Greater Noida East and Greater Noida West (Noida Extension) markets have also witnessed significant price rise tracking the affordable prices and a slew of measures announced to safeguard homebuyer interests by CREDAI. While we shall review this outlook in the report, what is interesting is that apart from the overheated tag, these two pockets have very different dynamics driving them. They are in fact at contrasting ends of the real estate spectrum in certain aspects. 14 Demand for residential units slow in Gurgaon owing to the high prices Gurgaon residential real estate market has been heavily investor driven. During the previous year s survey, it was observed that the investors were holding on to their real estate investments for a relatively longer tenure as exit options had not been easy. Long-term investors continue to add up to 55% of the total buyer space in

15 REAL ESTATE this geography. During the current year s survey, it has been observed that the resale market is flooded with sellers. Investors are keen to off-load their investments in a slow moving market. Exit options in residential real estate continue to be difficult as was observed in the previous year. The market in terms of real estate transactions has been slow (luxury segment of above INR 4cr being the worst hit), with the conversions and inquiries witnessing a dip across locations. Branded launches are getting relatively improved responses. However, there is high investment interest in projects during the pre-launch stage. Builders are resorting to the buyback, subvention and flexi-payment schemes to pump up the buyer sentiment in the market, which is yet to yield significant results in terms of translating into increased transactions. Properties in this segment sell, on the basis of their proximity to Delhi and the significant amount of IT-BPO and commercial presence in the area. There is no correction in the builder prices; however, there is stress on the resale prices. Demand for residential units slow in Noida as buyers await to observe the response to the `to-bedelivered inventory During the previous year s survey, it was observed that demand in Noida is maximum in the INR lacs bracket and buyers increasingly preferred flats with power backup. The segment appealed to the end users owing to the relatively healthy infrastructure support in terms of roads, power and water; the closure to inquiry ratio had increased on YoY basis. During the current year s survey, it has been observed that the market has entered a stagnation phase over the past six months as buyers are waiting to observe the manner in which the to be delivered inventory is going to behave over the next 1-2 years. However, the market still remains predominantly end user driven. Noida market is not witnessing many soft launches and builders are selling FSI to raise money. This micro-market continues to attract investor interest from East and South Delhi, as the accessibility to Noida is much better from these parts of Delhi. The Yamuna Expressway is expected to channelise demand from business districts or `Mandis of Ghaziabad, Moradabad, Agra, Kanpur and Lucknow, as Noida is perceived as a relatively up market location in Uttar Pradesh. Properties around the Noida Expressway are considered good investment options essentially because of easy access to Greater Noida and South Delhi. Additionally, existing/upcoming corporate presence adjacent to the expressway is expected to keep the market demand robust. Investors are increasingly looking at the fresh soft-launch supply along Yamuna Expressway and Greater Noida West, with healthy volume of transactions along these stretches. The stretch along the DND Expressway is slated to be delivered in the next years, with projects largely at the same level of construction activity. Oversupply in both markets There is moderate oversupply in the real estate markets of both Gurgaon and Noida amidst the slow moving demand. Impact of the upcoming metro and Kundli-Manesar-Palwal Expressway impacting buyer decisions The Kundli-Manesar-Palwal expressway and the proposed metro project plan in Noida and Gurgaon region are not observed to be significantly impacting buying decisions. 15

16 REAL ESTATE Contrasting methods of land acquisition followed by the respective jurisdictions The Haryana government in Gurgaon allows developers to directly acquire land from farmers. Later, the builder applies for infrastructure support from the government for his project. So here, acquisition is followed by the completion of the project and subsequently, infrastructure support from the government. However, the Uttar Pradesh government in Noida follows a different model. Here, the government directly acquires land from the farmers. Following this, it draws a plan in terms of infrastructure support for the area and earmarks plots. The last stage involves auctioning the plots to builders. So, infrastructure support comes before the residential project. The real estate and infrastructure developments are a lot more planned in the latter as compared to the former, largely owing to the acquisition norms followed. Infrastructure Issues Gurgaon s infrastructure issues in terms of water, power and roads are a cause of concern. There is significant supply that has come up, but the city lacks proper amenities to support the new supply. Compared with Noida, the degree of planning and road connectivity in Gurgaon appears to be low. As discussed earlier, this comes from the model of land acquisition followed by the government. However, in Gurgaon properties sell on the basis of their location, (as indicated in the map) irrespective of whether the plan has actually been implemented. The reason for this is that if the investor waits for the basic amenities to reach the property, he/she would have missed out on the opportunity to cash in on the appreciation in his/her property value. In this micro-market the bet is very much based on the notion of future development with respect to infrastructure. On a relative basis, the scenario seems to be a lot better in Noida. The metro has penetrated till Sector 50, with the end station being `Noida City Center and is planned for an extension to Greater Noida. DND Expressway gives easy access to Delhi and Greater Noida. Load shedding has reduced heavily from 8-10 hours previously to just 1-2 hours. Public transport is not an issue as there is adequate presence of autos, taxis and shared tempos. However, night-time public transport is an issue in both the micro-markets. Commercial presence in both the micro-markets Owing to the business-friendly stance of the Haryana government and its close proximity to the Indira Gandhi International Airport, Gurgaon has emerged as one of the most prominent outsourcing and off shoring hubs in the world. It is a major centre for the telecom, automobile and garment manufacturing industries as well. Noida has emerged as a major destination for MNCs outsourcing IT services. Many multinational companies have their Indian branch offices in Noida given its status as a Special Economic Zone and its proximity to Delhi. It also houses the head office of the Software Technology Parks of India, established by the government of India to promote the software industry. Apart from this, Noida has quickly emerged as a centre for the automobile ancillary units and major news channels and studios. After analyzing the markets from a macro-perspective, let s delve deeper and look at the micro-level trends. 16

17 NORTH DELHI Major Locations: Delhi Gate, Kashmere Gate, Darya Ganj, Model Town, Pitampura, Rohini, Ashok Vihar and Civil Lines Key Highlights: Civil Lines, Rajpur Road and Mall Road are some prime localities of North Delhi, typically dotted with old bungalow style developments. The governor's residence and the old secretariat are located in this region. North Delhi houses some of the old prominent buildings like the Red Fort and the Jama Masjid, which are often frequented by the tourists. The esteemed University of Delhi's North campus is located in this region. The rental markets of the surrounding locations such as Kamla Nagar, Mukherjee Nagar, Model Town, etc. witness decent traction on account of huge demand for student accommodation. The region is famous for old traditional shopping arcades in Darya Ganj, Sadar Bazaar, Kamla Nagar, Karol Bagh and Chandni Chowk. It predominantly witnesses secondary market transactions. However, few project launches by Parsvnath and M2K developers have been witnessed at the Magazine Road and the Model Town locations of this region. The available units in these projects at the primary markets sell in the range of INR 11,500-20,000 /sq.ft. This zone witnessed the first underground Metro connectivity from Delhi University to central Delhi. The connectivity has been extended and currently covers the stretch from Jahangirpuri (North Delhi) to Gurgaon via South Delhi. In terms of organised retail, the region witnesses approximately 22 malls, spread across the entire Northern region. Key malls are Unitech Metrowalk, Emaar MGF Mall and M2K Mall at Rohini, DLF City Center at Shalimarbagh and M2K mall at Pitampura. Growth Stimulators: Well-connected to other parts of the city through well-planned roads. Delhi Metro network offers good connectivity within the city and its suburbs. The region is also well-connected to new/old Delhi railway stations and IGI Airport through Delhi metro network and the Airport Expressway network. Close proximity to Inter State Bus Terminus (ISBT), New/ Old Railway stations and central business districts such as Connaught Place and Karol Bagh. Price Trend in North Delhi* 180 Pitampura Rohini Ashok Vihar Mar 09 Mar 10 Mar 11 Index Mar 12 Sep 13 * Assuming 100 as the base for Mar 2008 Source: ICICI Mortgage Valuation Group Property Rates of units in prime residential markets of North Delhi** Location 17 Capital Values (INR/sq.ft.) Rental Values for 2 BHK (INR/sq.ft./month) Pitampura 12,000 20, Source: ICICI Property Services Group **Indicative of mid market segment

18 SOUTH DELHI Major Locations: Greater Kailash - (I, II, III), Defence Colony, South Extension, C.R. Park, Green Park, Hauz Khas, Safdarjung Development Area, Safdarjung Enclave, Panchsheel Park, Nehru Place, Saket, Golf Link, Chanakyapuri, Jor Bagh, New Friends Colony, Maharani Bagh, Lajpat Nagar, Kalkaji, Vasant Vihar, Vasant Kunj, Anand Niketan, Shanti Niketan and West End. Key Highlights: South Delhi real estate landscape is largely dotted with prime residential properties. The region typically offers independent houses and bungalow style developments. However, immense redevelopment activity in the form of construction of independent floors is rampant across all the parts of this micro-market. Major government offices and embassies/consulates are located in the southern part of Delhi. Marked with upscale locations such as Greater Kailash, Anand Lok, Vasant Vihar, Anand Niketan, Hauz Khas, Defence Colony, New Friends Colony, Gulmohar Park, etc., this micro-market offers highest land prices after the Lutyen's Zone of Delhi. The average ticket size of residential floors in the primary markets varies in the range of INR crores. South Delhi real estate market which remained resilient even during the global financial crisis in , has recently witnessed a slow-down in transaction volumes. These markets have seen prices almost double over the last three years, but are currently undergoing a down trend in capital values to the extent of 15-20%. Demand for properties has witnessed a dip on account of weak economic scenario and hardened interest rates. Hence, certain builders under the pressure to sell their units are willing to negotiate. The primary and resale markets of certain category-a locations have witnessed declining sales because of multiple and huge increases in the circle rates in the past few months. The region has excellent infrastructure in terms of connectivity and social amenities. South Campus of the University of Delhi is located in this part of the city. Reputed research and education institutes such as IIT Delhi and AIIMS are located in this region. Heritage monuments like Qutab Minar, Purana Quila and Humayun Tomb are famous tourist destinations located here. Nehru Place is a commercial hub witnessing presence of various corporate/ MNC offices. Lajpat Nagar is a mix of commercial and residential development. Organised Retail: Approximately 17 malls are located across the entire region. Aarone Select City Walk, DLF Place, MGF Metropolitan, Ansal Plaza, Ambience mall, DLF Promenade and DLF Emporio are the key malls located in this region and they witness modest foot-falls throughout the week. DLF's super luxury projects, King's Court and Queen's Court, are located in Greater Kailash-II of this region. *Source: ICICI HFC Growth Stimulators: Good Connectivity through wide and well-planned roads. Many important city roads such as Mehrauli- Gurgaon Road, Mehrauli-Badarpur Road, Aurobindo Marg, August Kranti Marg, Press Enclave Road, etc. fall in this region, while arterial roads like Inner Ring Road, Outer Ring Road and NH-2 pass through it. Well connected through the Metro rail network with the other parts of city and suburbs. Presence of art and cultural centers, best shopping destinations, hospitals, schools, colleges and commercial office spaces are other key factors driving the market. 18

19 SOUTH DELHI Price Trend in South Delhi * Index Chanakya Puri Greater Kailash Vasant Kunj Lajpat Nagar Safdarjung Mar 09 Mar 10 Mar 11 Mar 12 Sep 13 * Assuming 100 as the base for Mar 2008 Source: ICICI Mortgage Valuation Group Property rates of units in prime residential markets of South Delhi ** Location Capital Values (INR/sq.ft.) Rental Values for 2 BHK (INR/month) Anand Niketan 25,000-35,000 60, ,000 (Size: 850-1,200 sq.ft.) Vasant Vihar 30,000-35,000 60, ,000 GK I, II 19,000-36,000 50, ,000 (Size: 900-1,500 sq.ft.) Saket 13,000-17,000 25,000-50,000 (Size: 800-1,500 sq.ft.) **Indicative mid market segment Source: ICICI Property Services Group Purana Quila, Delhi 19

20 EAST DELHI Major Locations: Preet Vihar, Mayur Vihar, Pushpanjali Enclave, Anand Vihar, Patparganj, Lakshmi Nagar, Gandhi Nagar, Vivek Vihar and Shahadara. Key Highlights: East Delhi refers to the areas located beyond Yamuna or trans Yamuna, near Uttar Pradesh border. It is well connected to Noida and Ghaziabad suburbs. The residential real-estate is a mix of DDA apartments and independent houses. The region is predominantly inhabited by the middle-income working class. Mayur Vihar, Preet Vihar, Vivek Vihar, Anand Vihar, Gagan Vihar, Yamuna Vihar and Pushpanjali Enclave are some of the up-market residential areas of East Delhi. Mayur Vihar is strategically located adjacent to Noida. The location is emerging as one of the commercial hubs. Common Wealth Games-2010 took place at East Delhi, near the famous Akshardham shrine. Anand Vihar railway station and Inter State Bus Terminus (ISBT) are located at Anand Vihar in East Delhi. Crowded with small and big shops, this place is considered to be one of the commercial centers in Delhi. Emaar MGF had launched its residential project 'Common Wealth Games Village' under a joint venture development model with DDA in this region. Growth Stimulators: Delhi Metro network has significantly improved connectivity with other locations in the city and its suburbs. The Common Wealth Games-2010 hosted in this region has boosted infrastructural development to a great extent. Development in terms of improved and widened road network has changed the face of the old cramped development. Price Trend in East Delhi * Index Mayur Vihar Zone Patparganj Zone Mar 09 Mar 10 Mar 11 Mar 12 Sep 13 * Assuming 100 as the base for Mar 2008 Source: ICICI Mortgage Valuation Group Property rates of units in prime residential markets of East Delhi ** Location Capital Values (INR/sq.ft.) Rental Values for 2 BHK (INR/sq.ft./month) Preet Vihar 10,000-15, Mayur Vihar 7,000-13, Patparganj 7,000-10, Vivek Vihar 10,000-16, Shahadara 6,000-10, **Indicative mid market segment Source: ICICI Property Services Group 20

21 WEST DELHI Major Locations: Pashchim Vihar, Punjabi Bagh, Vikaspuri, Janakpuri, Raja Garden, Tagore Garden, Rajouri Garden, Subhash Nagar, Mansarovar Garden, Ramesh Nagar, Kirti Nagar, Hari Nagar and Dwarka. Key Highlights: The residential real estate landscape typically comprises independent houses/ bungalows. Recently a lot of redevelopment in terms of re-construction of these to low-rise floors can be seen across the entire region. The redevelopment is carried out either by the owners or the local developers. Raja Garden and Kirti Nagar are known for marble and furniture markets respectively. Dwarka Subcity: Dwarka is located towards the south-west of Delhi. It is in close proximity to the domestic and international airports. A total of 29 sectors exist in the subcity. The development in this micro-market is carried out by either DDA or Group Housing Societies. Residential real estate is typically dotted with 9-11 storied apartments/ floors. Dwarka has a robust planned and well-connected road network spread across its sectors and adjoining locations. It is bounded by NH-8, outer ring road, Najafgarh road, Pankha road and the Rewari Railway line. The under-construction Dwarka Expressway shall provide excellent connectivity to Gurgaon. The region is well-connected through the Delhi Metro network. A total of 10 metro stations exist in Dwarka, the highest in any colony of Delhi. The sector-21 Delhi metro station of Dwarka is also linked with the Reliance Airport Express Metro line, which runs up to the international airport. Delhi's second diplomatic enclave (the first being at Chanakyapuri) is planned to come up in Dwarka. Almost all micro-markets have shopping arcades. City Square, West Gate, TDI mall and Paragon mall are located at Rajouri Garden. Pacific mall and Eros Metro mall are located in Subhash Nagar and Dwarka respectively. Approximately 15 malls are located in the western region. DLF is present at Shivaji Marg of West Delhi. Growth Stimulators: The region is well-connected through the metro and well-planned roads to various parts of the city. Delhi Metro connectivity has boosted the real estate potential (especially in Dwarka) to a significant extent. West Delhi encompasses all public amenities like good schools, hospitals, shopping destinations, etc. Price Trend in West Delhi * Janakpuri 160 Index Mar 09 Mar 10 Mar 11 Mar 12 Sep 13 * Assuming 100 as the base for Mar 2008 Source: ICICI Mortgage Valuation Group 21

22 WEST DELHI Property rates of units in prime residential markets of East Delhi ** Location Capital Values (INR/sq.ft.) Rental Values for 2 BHK (INR/sq.ft./month) Janakpuri 12,000-18, Paschim Vihar 11,000-12, Vikaspuri 10,000-13, Dwarka 8,000-20, **Indicative mid market segment Source: ICICI Property Services Group Parliament House, Delhi 22

23 23 GURGAON MASTER PLAN 2031

24 GURGAON Based on geographical location and the similar growth drivers, we have classified Gurgaon real estate market into three segments. The first pocket looks at locations adjoining the Southern Peripheral Road. The second pocket consists of sectors adjoining Manesar, bounded by the Northern Peripheral Road (Dwarka Expressway) and NH-8. The third pocket looks at sectors of Gurgaon aligned with the under-construction Dwarka Expressway (or the Northern Peripheral Road). The analysis also covers certain peripheral locations near Gurgaon, such as Sohna, Dharuhera and Bhiwadi. Major Locations: Golf Course Road, Golf Course Extension Road, Sohna Road, MG Road, NH-8, Gurgaon- Faridabad Road Key Highlights: This belt has predominantly matured and witnessed subdued market activity. Absorption levels trickled down by 19% in the H1 CY 2013 from the H1 CY 2012 levels. New launches have also dropped by 23% during the same period. While Golf Course Road remains the most premium priced location, other locations of Gurgaon have also reached high price levels. Golf Course Road has now become a matured micro-market both in terms of primary transactions and supply launches. The capital values have essentially remained stable in the past few months. Average residential property prices at this location vary between INR 10,000 25,000/sq.ft. Golf Course Extension Road witnessed decent new launches during H1 2013, however absorption depicts a slightly declining trend since CY 2012, which is in tune with the overall trend in the Gurgaon market. Prices have largely remained stable with a slight uptrend. Residential properties sell at approximately INR 9,400 14,000/sq.ft. in the primary markets. Gurgaon-Faridabad Road is a 25 km road stretch, connecting near the SPR patch in Gurgaon and extending to Faridabad. This upcoming location near Aravalli Hills is planned to be a low density area. Hence, builders have launched larger sized units of approximately 4000 sq.ft. onwards. Premium properties in this micromarket are priced in the range of INR 11,000-18,000/sq.ft. (Average Price INR 12,500/sq.ft). New launch activity and absorption have shown a stable trend over the past two years. Sohna Road stretch also witnessed subdued new launches and absorption in the last one year. Mehrauli-Gurgaon Road (MG Road) has a fair amount of organised retail development and office spaces. Predominantly commercial in nature, this road is also dotted with some residential development. This entire region is favored by good retail and office development. There are 17 operational shopping-malls, primarily located on the MG Road, DLF phases and the Golf Course Road. DLF, Ansal and Unitech had major land banks since the initial development phase. However, currently many other reputed developers such as; IREO, Tata Housing, Emaar MGF, Vatika, Paras Group, etc. are present. *Source: PropEquity Growth Stimulators: 24 Good connectivity from the southern part of New Delhi through MG Road and the six-lane NH-8. The presence of huge employee base operating from commercial developments, IT/ITeS spaces and Cyber Parks is expected to keep the residential demand robust. Availability of organized retail and good residential supply makes it an attractive location. Existing metro connectivity from Delhi, Noida to MG Road and HUDA City Center, Gurgaon. Moreover, Gurgaon Rapid Metro (integrated with Delhi metro) is expected to offer good connectivity between the residential and commercial sectors in this belt. Measures are being taken to ease the traffic flow by planning new inter/intra city roads. DLF-HUDA Signal Free Corridor: An 8.3 km signal-free corridor is planned to connect Delhi-Gurgaon toll plaza to Golf Course Road (end of Sector 55-56). The road expected to cater to approximately 15 Lac commuters, should reduce the travel time on the stretch from 30 min to 7 min. The corridor would be integrated with the Rapid Metro System.

25 GURGAON Weighted Average Price trends (Available Units) in Gurgaon* Weighted Average Prices 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Golf Course Road GCR Extension Sohna Road Gurgaon - Faridabad Road NH-8 M.G Road Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 * Source: PropEquity Property rates of units in prime residential markets of Gurgaon ** Location Capital Values (INR/sq.ft.) Rental Values for 2 BHK (INR/month) Golf Course Road 11,000-18,000 55,000-1,25,000 (3, 4, 5 BHK) Golf Course Extension Road 8,000-13,600 25,000-30,000 Sohna Road 6,000-10,000 20,000-25,000 MG Road 11,000-15,000 55,000-1,20,000 (3 BHK) NH-8 15,000-20,000 30,000-35,000 **Indicative mid market segment Source: ICICI Property Services Group 25

26 GURGAON Major Locations: Gurgaon sectors adjoining Manesar Key Highlights: This region encompasses the Gurgaon sectors, adjoining Manesar, bounded by Dwarka Expressway and the NH-8. The prevailing residential property prices in this micro-market fall in the bracket of INR 5,500 7,800. This part of Gurgaon is still under metamorphosis and has huge real estate potential because of its proximity to Manesar as well as the developed Gurgaon. As against the generic trend in Gurgaon of roads development post the project construction, this region often known as 'New Gurgaon' has witnessed marked improvement in road networks, way before project construction. The old urbanisation boundary as per the Gurgaon-Manesar Master Plan-2025 has been extended in the latest Gurgaon-Manesar Master Plan Consequently, sectors 88A, 88B, 89A, 89B, 95A and 95B have been added on to the urban real estate development map as residential and public utilities sector. These sectors are located on the land plot previously earmarked for SEZ. New launch units during the H have dropped by 30% vis-à-vis the H levels. However, with the addition of new residential sectors, new launch activity is expected to pick-up in future. Absorption levels have also gone down by about 15% in the same span. Prices of available stock have witnessed an approximate appreciation of 45% from end Q2 CY 2012 levels. Unsold inventory by the end of June 2013 stood at 4,900 units approximately, which is 9 % lower than that in June The adjoining location Manesar, is the Industrial and IT hub hosting many global leading brands such as Honda, Toyota, Mitsubishi, Suzuki, Maruti, Hero Motors, Samsung Telecommunications, Frigo Glass, HCL, etc. Key developers in this micro-market include DLF, Vatika Group, 3C, Emaar MGF, Anantraj, Godrej, Uppal, Vipul, Bestech and Raheja. *Source: PropEquity Growth Stimulators: The presence of leading industries, corporates and IT companies shall lead to employment generation, hence keeping the residential demand robust. Widening of existing two-lane Pataudi Road to 135 meters offers better and smooth connectivity and hence mitigates traffic congestion. Moreover, the construction of 60 meters wide inner sector roads would offer good connectivity in this part of Gurgaon. Kundali-Manesar-Palwal (KMP) Expressway once operational, shall mitigate the heavy traffic congestion on the Delhi-Gurgaon Expressway. However, this project which commenced in 2006 has missed various deadlines and there is currently no clarity on its completion date. As on date, approximately 70% of this 136 km KMP stretch is constructed (Secondary Market Sources). NH-8 and the upcoming Northern Peripheral Road shall further improve connectivity with other parts of Gurgaon and Delhi. 26

27 GURGAON SECTORS ADJOINING MANESAR Weighted Average Price trends (Available Units) in sectors of Gurgaon adjoining Manesar * Weighted Average Prices 7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Jun 09 Towards NH - 8 Jun 10 Towards Pataudi Road Jun 11 Jun 12 Jun 13 * * Assuming 100 as the base for Mar 2008 Source: ICICI Mortgage Valuation Group Property rates of units in prime residential markets of sectors adjoining Manesar** Location Capital Values (INR/sq.ft.) Sector 86, 90, 91, 92 4,200-7,500 Sector 81, 81A, 82, 82A, 83, 84 5,750-7,750 Sector 76, 77, 78, 80 5,000-7,000 Manesar 4,500-5,000 **Indicative mid market segment Source: ICICI Property Services Group 27

28 GURGAON Major Locations: Gurgaon sectors aligned with Dwarka Expressway Key Highlights: Dwarka Expressway (or Northern Peripheral Road) is an 18 km long and 150 wide road stretch, which is undergoing civil works. The road stretch is set to provide an alternate link between Gurgaon, Manesar and Delhi. Precisely, it would connect Dwarka Phase II (New Delhi) and Palam Vihar to NH-8 near Kherki Dhaula. The expressway project is being developed under the public private partnership (PPP) model and the tender for its development was awarded to Indiabulls in March The construction commenced in April Currently, a major part of the expressway is complete; however civil work is pending on certain patches of about 4 km, which are stuck under litigation. Key reason is acquisition issues because of plots/houses of more than 250 private owners on this expressway alignment. Consequently, the project has missed several completion deadlines and completion time lines remain hazy. The 150 meters expressway is expected to be one of the widest roads in India (just to compare Delhi- Gurgaon expressway is 75 meters wide). Apart from this, the arterial roads (or the inner sector roads) are planned to be meters wide along the expressway and 90 meters wide in Dwarka phase II (Delhi). This framework would ensure congestion-free connectivity with most locations in Gurgaon and Dwarka (Delhi). Moreover, the proposed metro rail connectivity adds on to the future infrastructure. As per the Gurgaon Master Plan 2025, while most of the sectors aligned with NPR have been planned for residential development, few areas are earmarked for a mix of commercial and industrial development in sectors 114, 3A and certain parts of sectors 106, 109 and 112. The market touted as an affordable location two years back, has reached high price levels. Over the past two years the prices have appreciated by approximately 80%, however; in the past one year an uptrend of approximately 32% has been noticed. The prevalent rates of the residential units fall in the range of approximately INR 5,500 11,000 /sqft. (Average Price: INR 8,000/sq.ft.) The region has witnessed subdued new launch and absorption activity. While the quantum of residential units launched during H has witnessed a dip of 33% by H levels, absorption is also hit by 16% over the same span. It is also noticeable that the buyers in this investor-driven micro-market are finding it tough to take an exit. By the June 2013 end, the region had approximately 10,700 unsold residential units, which is 12% higher than the June 2012 level. Predominant developers here are BPTP, Uppals, Indiabulls, Raheja, Paras, Ramprastha, Mahindra Life Space, Chintels and Sobha. Source: PropEquity Growth Stimulators: 28 Good connectivity and proximity to the west Delhi region, Indira Gandhi International Airport and various Gurgaon locations via this under-construction expressway is the key attraction. Once operational, the expressway is expected to prune down the travel time to west Delhi by half and the Indira Gandhi International Airport would be accessible within a few minutes drive. While there is a metro connectivity proposed for future, there is an existing metro connectivity in Dwarka and metro station at Dwarka Sector-21 is just few kilometers away from the expressway. The proposed Diplomatic Enclave in Dwarka phase II, with numerous planned embassies (this would second the one at Chanakyapuri, Delhi) would further strengthen the demand dynamics in the area. As mentioned earlier, patches of land across this region have been earmarked for commercial development. This planned commercial development and existing commercial market in Gurgaon is set to support the residential demand in the region.

29 GURGAON In order to ease the traffic flow, HUDA had also planned to develop four new flyovers in this region. The flyovers would be constructed at the intersections of the Pataudi Road near Sector 88, Farrukhanagar Road near sectors 100 and 101, Daultabad Road near sectors 104 and 105 and another road crossing NPR near sectors 110A and 111. (Secondary Market Sources) While there is a decent existing infrastructure of schools, shopping centers, hospitals in Palam Vihar, Gurgaon and Dwarka, which are close to the expressway, this region is expected to have proper civic infrastructure including better and modern sewage and power distribution systems. The planned 30 m wide green belt on both sides of the expressway would make the region environmentfriendly. Weighted Average Price trends (Available Units) of sectors near Dwarka Expressway* Weighted Average Prices 8,050 7,050 6,050 5,050 4,050 3,050 2,050 1, Region-1 Region-2 Region-3 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Region 1: Sector Region 2: Sector Region 3: Sector 37(A, B, C, D) * Source: PropEquity Property rates of units in prime residential markets of sectors near Dwarka Expressway** Location Capital Values (INR/sq.ft.) Sector 37 D 4,750-5,500 Sector 99 to 104 4,500-6,500 Sector 105 to 109 6,050-8,000 Sector 110, 110A,111, 113 6,200 10,500 **Indicative mid market segment Source: ICICI Property Services Group 29

30 30 SOHNA MASTER PLAN