REAL ESTATE MARKET OVERVIEW - Puranik Builders

REAL ESTATE MARKET OVERVIEW

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Industry Research Report Mumbai & Pune (Residential & Commercial Real Estate)

Final Report For Puranik Builders Ltd.

September 2021


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Contents

1. ECONOMIC OVERVIEW............................................................................................................................. 4

1.1. India Economic Overview ........................................................................................................................ 4

2. ADVANTAGE INDIA .................................................................................................................................... 6

2.1. Recent Policy Announcements and Government Initiatives .................................................................... 6

2.1.1. Pradhan Mantri Awas Yojana (PMAY) ................................................................................................ 6

2.1.3. Smart Cities ......................................................................................................................................... 7

2.1.4. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) .................................................. 7

2.1.5. Industrial Corridors & Logistic Parks driving growth ............................................................................ 8

2.3. Private Equity Investments in Real Estate............................................................................................... 9

2.4. RERA, GST and Demonetization ............................................................................................................ 9

2.5. Changes in tax liability on Joint Development (JDA) ............................................................................. 11

2.6. REIT Policy and way forward ................................................................................................................ 11

3. IMPACT OF UNIFIED DEVELOPMENT CONTROL AND PROMOTION REGULATIONS FOR

MAHARASHTRA STATE (UDCPR) .................................................................................................................. 12

4. INDIA RESIDENTIAL REAL ESTATE OVERVIEW .................................................................................. 13

4.1. Comparative Analysis of Residential Markets ....................................................................................... 14

4.2. Affordable and Mid-income housing ...................................................................................................... 15

4.3. Impact of COVID on Real Estate Sector ............................................................................................... 16

5. MUMBAI METROPOLITAN REGION (MMR) MARKET OVERVIEW ....................................................... 18

5.1. MMR Demographic and Economic Profile ............................................................................................. 18

5.1.1. MMR Infrastructure Initiatives ............................................................................................................ 19

5.1.2. MMR Commercial Real Estate Overview .......................................................................................... 21

5.1.3. MMR Retail Market Snippet ............................................................................................................... 23

5.1.4. MMR Residential Real Estate Overview ............................................................................................ 23

5.1.5. Slum Rehabilitation Authority (SRA) Policy ....................................................................................... 28

5.1.6. Private Society Redevelopment 30 & 32 ........................................................................................... 29

6. PUNE MARKET OVERVIEW .................................................................................................................... 30

6.1. Pune Demographic & Economic Overview ............................................................................................ 30

6.2. Pune Infrastructure Initiatives ................................................................................................................ 31

6.2.1. Pune Commercial Real Estate Overview .......................................................................................... 32

6.2.2. Pune Retail Market Snippet ............................................................................................................... 34

6.2.3. Pune Residential Overview ............................................................................................................... 35

ANNEXURE 1: MUMBAI METROPOLITAN REGION INFRASTRUCTURE MAP ........................................... 39

ANNEXURE 2: MUMBAI RETAIL AND COMMERCIAL MARKET SPREAD ................................................... 40

ANNEXURE 3: MMR RESIDENTIAL CAPITAL VALUE RANGES (INR PER SQ.FT. ON CARPET AREA) ... 41

ANNEXURE 4: PUNE INFRASTRUCTURE MAP (KEY EXISTING AND UPCOMING DEVELOPMENTS) .... 42

ANNEXURE 5: PUNE RETAIL AND COMMERCIAL MARKET SPREAD ........................................................ 43

ANNEXURE 6: PUNE RESIDENTIAL CAPITAL VALUE RANGES (INR PER SQ.FT. ON CARPET AREA) .. 44

ANNEXURE 7: DETAILS OF SLUM REHABILITATION SCHEME 33 (10) ...................................................... 45


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ANNEXURE 8: DETAILS OF PRIVATE SOCIETY REDEVELOPMENT 30 & 32 ............................................ 46

ANNEXURE 9: DEFINITIONS ........................................................................................................................... 47

ANNEXURE 10: KEY DEVELOPER PROFILES .............................................................................................. 48

ANNEXURE 11: DEVELOPERS IN MUMBAI MMR & PUNE PMR .................................................................. 50

CAVEATS & LIMITATIONS ............................................................................................................................... 54


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1. ECONOMIC OVERVIEW

1.1. India Economic Overview

Over the past decade India has been one of the world’s fastest growing major economy in the world and is

forecasted to become one of the world’s top three economic forces over the next 10-15 years. During the period

1990 to 2020, India’s GDP has grown at a CAGR of 6% despite of periodic economic upheavals. Several factors

such as increased consumption, government spends, shift of economy from agriculture to services sector, etc.

have contributed towards the overall growth in Gross Domestic Product (GDP).

In the April-June quarter of current fiscal year 2021-22, India’s real GDP has increased by 20.1% YoY from a

contraction of 24.4% in the same period of the previous financial year. The contraction is largely attributed to

the Pandemic (Covid-19). However, the decline has been less significant than anticipated. While sectors such

as hospitality, tourism, aviation, etc. were severely impacted owing to the restrictions on travel during the lock-

down, are now witnessing revival as the lock-down restrictions are being lifted. However, sectors such as

Pharma, e-commerce, Data centers, warehousing and logistics have grown significantly during the same period.

Several institutional and research bodies are optimistic about India’s economy and have forecasted the GDP to

grow by upwards 9% in 2021 whereas the International Monetary Fund (IMF) has projected a growth of 11.5%

in 2021; which will be the fastest in the World and the only country to have a double digit growth in 2021. The

country’s GDP rose to 20.1% in the Q1 of financial year 2021-22 and has surpassed expectations.

The United States Department for Agriculture Economic Research Service (USDA) based on World Bank and

IMF data had forecasted India’s GDP growth rate at 6.3% for FY23 with a CAGR of ~48% in comparison to

Covid affected year of FY21. A study by the USDA, estimates India’s GDP to grow to USD 6.2 trillion by 2030.

Figure 1

Source: World Bank; OECD, USDA

The Consumer Price Index (CPI), referred as the Retail Inflation, eased from 6.73% in July 2020 to 5.59% in

July 2021 as per Ministry of Statistics and Programme Implementation (MOSPI). It is the lowest inflation rate

reported since November 2019. The moderation in inflation rate can largely be attributed to slower rise in food

prices.

India's foreign exchange reserves in year 2000 were merely USD 38 billion. Since then, India’s reserves have

grown sharply to USD 633.56 billion as of August 2021, according to data released by the RBI on 3rd Sept

0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.6 0.7 0.8 0.91.2 1.2 1.3

1.7 1.8 1.8 1.9 2.0 2.1 2.32.7 2.7 2.9

1.9

6.2

6%

1%

5%5%

7%8% 8%

4%

6%

9%

4%

5%

4%

8% 8%9% 9%10%

3%

8%8%

5%5%

6%7% 8% 8%

7% 7%6%

-8%

6%

India's GDP Growth Trend

GDP in USD Trillion % Growth Annually


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2021. This is amongst the highest amount of foreign exchange reserves that India has recorded, with foreign

exchange assets at USD 571.6 Bn and gold reserves at USD 37.4 Bn. Such high accumulation is being touted

as the best buffer amidst global, economic and geopolitical uncertainties.

Since 2015, India has jumped 79 places to rank 63rd in the 2020 Ease of Doing Business Ranking by The World

Bank, reflecting the government’s pro-business stance to create a conducive environment for businesses to

operate in the country. Investor confidence continues to remain strong, on the back of high cross border M&A

activity.

As per the NASSCOM report, India ranked third in the world in terms of number of startup companies with

11,000 to 12,500 tech startups, adding about 1,600 new startups in 2020. India continues to witness grow at

about 8%-10% in startups despite Covid-19 with 2020 recording 12 unicorns. The Indian startup ecosystem

continued to attract investor interest with almost $16.9 Bn of funding in 2021 (January to July). The phenomenal

growth in number of start-ups can be attributed to government’s push to support entrepreneurs via schemes

such as “Start-up India”, improvement in “ease of doing business”, access to funds (private equity), etc.

India is currently ranked the 6th largest economy in 2020 however, projected to become the 3rd largest economy

by 2030. The government’s pro-business reforms such as Make in India, Start-up India, relaxations in FDI, etc.

coupled with governments spends on infrastructure, RBI’s monetary policies, etc. are the key factors that have

contributed towards this economic growth of the country. Owing to such factors, India’s economy is expected

to maintain its growth trajectory over the next 10 – 15 years.


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2. ADVANTAGE INDIA

Over the past few years, the government has significantly contributed in providing its support to develop India

and promote business opportunities within the country. Government initiatives and policies such as relaxation

in Foreign Direct Investments (FDI) limits, ease of doing business, Housing for All, Make in India, Smart City,

Start-up India, and infrastructure initiatives has transformed India into one of the largest economies in the world.

Some of these initiatives are as under.

2.1. Recent Policy Announcements and Government Initiatives

2.1.1. Pradhan Mantri Awas Yojana (PMAY)

Housing for All Scheme: A report published by the Report of Technical Group (TG-12) on Estimation of Urban

Housing Shortage 2012-17, Ministry of Housing & Urban Poverty Alleviation, reported a total urban housing

shortage of 18.8 million units. About 96% (~18 Mn units) of this shortage is within the Economically Weaker

Section (EWS) and Low-Income Group (LIG). The Mid-Income Group (MIG) and High-Income Group (HIG)

account for only 4% in housing shortage (0.8 Mn units).

With the vision to provide homes for the economically weaker sections, the Prime Minister announced, “Housing

for All Scheme” under the PMAY in June 2015. Under this scheme the government has planned to construct 20

Mn houses by the year 2022. The Ministry of Housing and Urban Affairs (MoHUA) has so far sanctioned 11.3

Mn houses under PMAY – Urban as published on its online portal. MoHUA also reported that 5 Mn houses have

been completed and over 8.6 Mn houses are under-construction. An amount of INR 80 Bn has been allocated

during FY21-22 for PMAY scheme by the central government. Thane and Pune are part of the cities selected

under the PMAY scheme that will receive assistance from the center. Additionally, the stamp duty payable in

case of PMAY projects in Maharashtra have been reduced to INR 1,000 per dwelling unit belonging to EWS &

LIG category further enhancing the affordability for the end users in the state.

Affordable Housing in Partnership (AHP): The Finance Minister in its Union Budget 2016-17 had announced

that real estate developers would be exempt from paying tax on profits in affordable housing segment for a

period of five years, conditionally to project size. The exemption would be for projects that have been approved

by the competent authority during the period starting 01st June 2016 and ending on 31st March 2020. In the

Union Budget 2020-21 the government extended the timeline to 31st March 2021, and the same is further

extended for one year until 31st March 2022 as announced in the Union Budget 2021-22. Section 80 IBA has

been inserted by the Government in the Income Tax Act, 1961 to declare 100% deduction of the profits and

gains arising from the construction sector to make house purchases affordable and provide tax benefits to the

Real Estate Developers. The government also increased the time limit to 5 years to construct such projects,

providing developers sufficient timelines to efficiently execute construction of affordable housing projects.

Further, under the AHP, the government aims to provide financial assistance to increase participation of private

developers in affordable housing projects. Through this initiative, the central government extends assistance of

INR 0.15 Mn per EWS house in private projects, where at least 35% of the houses are constructed for the EWS

category.

Credit Linked Subsidy Scheme (CLSS): The scheme provides interest subsidy of 6.5% on loans for first time

home buyers from the Economically Weaker sections (EWS) and Low-Income Group (LIG) having annual

household income of up to INR 0.6 Mn. The subsidy is provided on home loans of up to INR 0.6 Mn for a

maximum period of 20 years, to the beneficiaries under this scheme. First-time home buyers from Mid-Income

Groups (MIG) with annual household income between INR 0.6 Mn and INR 1.2 Mn for MIG 1 category and

household income of INR 1.2 Mn and INR 1.8 Mn for MIG 2 category can also avail this subsidy, amounting to

maximum of 4% for MIG I category and 3% for MIG II category, for a maximum loan amount of INR 0.9 Mn and

INR 1.2 Mn, respectively. The unit size permissible under this scheme is a maximum of 30 sq. mt. of carpet

area for EWS & 60 sq. mt. of carpet area for LIG category. In June 2018, the government increased the CLSS


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subsidy unit size limits to 160 sq.mt and 200 sq.mt of carpet area for MIG 1 & MIG 2 applicants respectively,

subject to income eligibility. Earlier, the size limits were a maximum of 120 sq.mt. and 150 sq.mt. of carpet area

for MIG 1 & MIG 2 applicants respectively. During the FY21-22 Union Budget announcement, the Finance

Minister allocated INR 10 Bn towards the CLSS for the EWS and LIG whereas INR 0.1 Mn is allocated for the

MIG. Until 31st August 2021, around 1.63 Mn beneficiaries were reported to have availed the CLSS under the

PMAY (Urban).

In-situ slum redevelopment (ISSR): The scheme aims to provide houses to slum dwellers by redeveloping

the existing slums on public and private land. A grant of INR 0.1 Mn per house will be provided by the central

government to the planning and implementing authorities of the respective states. The Government further

awarded Infrastructure status to the affordable housing sector in February 2017. In line with government’s strong

focus on the affordable housing sector, the RBI had increased the permissible lending limits to 90% of loan to

value ratio for loans of up to INR 3 Mn.

In February 2018, the Union Cabinet approved the creation of National Urban Housing Fund (NUHF) with an

outlay of INR 600 Bn. The NUHF was planned to facilitate requisite fund raising for the different verticals of

PMAY, over the period of four years. The NUHF was created to provide a sustainable model for financing the

construction of houses under the PMAY- Urban scheme. On the back of focused government reforms for

affordable housing coupled with increased spending from the government, the affordable housing sector has

emerged as the one of the key growth drivers for real estate in India.

2.1.2. Budget 2022 for Real Estate Sector

In order to bolster demand in real estate industry, Government sees ‘Housing for All’ and affordable housing as

priority areas. The Budget 2022 provides multi-fold announcements that are likely to impact real estate and

includes Extension of Interest exemption up to INR 1.5 Lakhs for Affordable home loans up to March 2022,

Extension of tax holidays for developers for Affordable projects u/s 80IA up to March 2022, New tax exemptions

to developers on developing Affordable Rental Housing Complexes (a newly added fifth vertical in PMAY-U) for

Migrant Workers, Increase in safe harbour limit for primary sale of residential units from 10% to 20% by enabling

the developers to liquidate their unsold inventory at a rate substantially lower than the circle rate and giving

benefit to the home buyers and Debt Financing of InVITs and REITs by Foreign Portfolio Investors that can

ease access of finance and augmenting funds in infrastructure and real estate sectors.

2.1.3. Smart Cities

Smart Cities Mission is an urban re-development program by the Government of India with the mission to

improve and modernize 100 cities across the country. The improvements will be in the form of better utilities

(power, water, sewage, waste management, etc.), ease in transportation and commute, digitization and

governance making the cities people friendly and self-sustainable. The Union Ministry of Urban Development

in collaboration with respective state governments is responsible for the implementation. An amount of INR 64.5

Bn has been allocated during FY21-22 for the development of the Smart Cities under the Smart City Mission of

the central government. Within Maharashtra, eleven cities were selected for re-development under this initiative

including Mumbai, Thane, Kalyan-Dombivali, Navi Mumbai, Pune, Amravati, Solapur, Nagpur, Nashik and

Aurangabad and Pimpri-Chinchwad.

2.1.4. Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

AMRUT was formed in June 2015 with a view of providing basic services such as water supply, sewerage,

urban transport, etc. to households as well as building amenities that contribute towards improving the quality

of life for all. A total of 500 cities will be considered for development under this scheme. The government had

increased the budget by 14% and allocated a budget of INR 500 Bn for a 5-year period from FY16 to FY20. The

government has extended this by another 2 years, till March 2022. An amount of INR 73 Bn was allocated


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during FY21-22 for AMRUT by the central government. The Maharashtra state government has included a total

of 44 cities under this scheme that will be undertaken for development during the 5-year period. Mumbai, Thane,

Kalyan-Dombivali, Navi Mumbai, Pune, etc. are amongst the key cities selected under this initiative.

2.1.5. Industrial Corridors & Logistic Parks driving growth

Industrial growth is one of the most important agendas of the current government. The Make in India campaign

was launched in 2014 with an objective to promote India as an investment destination and global hub for

manufacturing. Under this initiative the government has managed to attract significant investment commitments

from several countries and companies. The 2018 Make in India event had recorded investment commitments

of INR 15.5 Trillion, with Maharashtra accounting for about INR 8 Trillion on investment commitments. Under

the Magnetic Maharashtra initiative, Shri. Uddhav Thakrey, the current Chief Minister of Maharashtra,

announced that the Maharashtra Government has signed MOU’s amounting to over INR 2 Tn in 2020. The

investment commitments are for diverse sectors including pharmaceuticals, healthcare, biotechnology, food

processing, FMCG, steel, automobiles, engineering and oil & gas. The further highlights the optimistic stance

of investors and the government in anticipation of a rapid turn-around of economic activities post Covid-19

impact.

To accommodate and drive this industrial growth in the country, several industrial corridors have also been

planned and are in various stages of implementation. Some of the key industrial corridors are

• Mumbai-Nagpur Samruddhi Corridor

• Delhi-Mumbai Industrial Corridor (DMIC)

• Bengaluru-Mumbai Economic Corridor (BMEC)

• Chennai-Bengaluru Industrial Corridor (CBIC)

• Visakhapatnam-Chennai Industrial Corridor (VCIC)

• Amritsar-Kolkata Industrial Corridor (AKIC)

While these industrial corridors will house industrial & logistics parks, the Ministry of Road Transport and

Highways is also planning to develop multimodal logistics parks under the Logistics Efficiency Enhancement

Programme (LEEP) across 35 locations in India with an estimated investment of INR 330 Bn. These industrial

parks are being built with an objective to reduce logistics costs incurred and will account for about 50% of the

road freight in India.

The World Bank ranked India at #42 out of the total 167 countries in its 2018 Logistics Performance Index (LPI).

India’s ranking for Quality of Overall Infrastructure was #46 in 2017. India’s overall ranking declined from #85

and to #90 in Quality of Overall Infrastructure ranking from 2014 to 2015. However, with several government

initiatives and policies, India’s ranking improved significantly to #74 in Quality of Overall Infrastructure in 2016.

The government continues to implement various initiatives towards improvement of the industrial &

infrastructure development within the country. The World bank has not released the LPI rankings after 2018.

These factors contribute substantially to drive real estate growth in India since these industrial corridors are

expected to create significant job opportunities, thereby attracting work force to these locations. Emergence of

these employment hubs is expected to create several new residential markets spreading along the stretch of

these industrial corridors. The DMIC alone cuts across 6 states and is expected to provide impetus to real estate

sector in 24 cities along its route. About 18% area of Maharashtra falls within the influence zone of DMIC. The

whole of Thane city falls within this influence zone and hence is likely to witness significant growth going forward.

The DMIC is India’s most progressive and largest infrastructure programme to build emerging industrial cities

as Smart Cities and enhancing the technologies across the infrastructural sector. The estimated investment for

DMIC is $100 Bn.


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2.2. Foreign Direct Investments (FDI) in Construction Development in India

Foreign Direct Investment (FDI) received in Construction Development from April 2000 to March 2021 stood at

USD 26 Bn, according to the Department of Industrial Policy and Promotion (DIPP). The Cabinet in January

2018 had approved 100% FDI under automatic route in the construction development segment, which includes

townships, housing, built-up infrastructure and real estate broking services. The government has taken these

measures to liberalize and simplify the FDI policy to offer ease of doing business in the country. India witnessed

an FDI inflow of USD 81.97 Bn in the FY20-21. This was a 10% rise compared to the previous year’s inflows of

about USD 74.39 Bn. Despite Covid 19, the FDI inflows have remained resilient recording USD 22.53 Bn for

the period between April 2021 and June 2021. Apart from the Covid-19 led slowdown, the FDI in construction

development had seen a steady growth over the previous six years. This reflects the sustained confidence

amongst investors especially towards the construction development sector in India and Maharashtra, despite

Covid-19 causing a short-term hinderance.

2.3. Private Equity Investments in Real Estate

Over the years, the Private Equity (PE) Investment in Real Estate in India have evolved significantly. While the

2000’s witnessed investments being made at an entity level (equity stake), the markets have evolved in recent

years and investments are typically being made at the project/SPV level. During the years between 2013 and

2016, the residential sector in India attracted on an average about 56% of the annual PE investments made in

India’s Real Estate market. However, with demonetization in 2016 and subsequent introduction of RERA and

GST coupled with increased momentum in office space, the investments in residential sector declined, average

investments percentage share being 19% between 2017 and 2020. The office segment attracted higher share

(averaging around half of the total investments between 2017-19) in the overall pie with institutional investors

having a huge favor for the asset class. Robust office leasing in major cities attracted investors to this rent-

yielding asset class. Industrial segment also started seeing traction starting 2017 and played a key role in

altering the sectoral share of the overall investment pie. However, residential with respect to affordable and mid

income housing remains on the investors’ radar for the long term as they continue to scout for opportunities in

this segment, given the thrust by government for affordable housing in India as well as rising demand from end-

users especially in mid-income category.

MMR has been one of the most preferred cities for PE investments in residential segment in India. MMR on an

average has received about 33% of the total investments made in residential segment between CY13 and

CY20. Pune received about 5% share of the investments during the same period in residential segment. Over

the last 3-5 years the PE investments in residential segment are typically being made in projects that have

received all necessary approvals and are under construction, typically in the form of structured debt.

Table 1

Private Equity Investments in Residential Projects - INR (Billion)

CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY211

India 35.2 60.7 190.1 209.5 144.2 96 74.6 32.64 29.11

Mumbai (MMR) 24% 34% 39% 30% 37% 42% 39% 19% 41%

Pune 12% 8% 3% 5% 5% 7% 1% 0% 15%

Source: Cushman & Wakefield Research

2.4. RERA, GST and Demonetization

Demonetization: Demonetization of INR 500 & INR 1,000 currency notes was announced in November 2016.

The immediate impact of the announcement led to people depositing their cash in banks and the Indian

1 Data for the period Jan 2021 to June 2021


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economy was drained out of liquid cash for a brief period. While majority of the low- and mid-income home

buyers make their purchases with home loans, they went into a wait and watch mode owing to uncertainties.

Developers also refrained from launching new projects during this period as there were no buyers. The High-

end to luxury housing segment was severely impacted by this announcement owing to higher proportion of cash

transactions involved in property purchases in this segment. The mid segment and the affordable housing

segment however, continued to grow cumulatively recording 13% increase in new unit launches in Q1 2017

compared to Q4 2016. Demonetization had led to increased liquidity in the banking system, allowing the interest

rates to be at the lower end and hence increasing affordability for a greater number of home buyers.

Demonetization has also helped in bringing transparency in property purchases with increase in transactions

undertaken through formal banking channels.

RERA: The Real Estate (Regulation and Development) Act (RERA) came into effect in May 2017. The RERA

policies are inclined towards safeguarding buyers’ interest, brining transparency and making the real estate

developers accountable for the development of their projects. The RERA has several stringent policies with

regards to completion timelines, revenue management, advertising, etc. Owing to such policies guidelines, real

estate developers not only require enough cash flows to fund their projects but also have project monitoring

systems in place to ensure adherence with RERA. These policies make real estate development challenging,

specifically for smaller/standalone developers. However, larger organized developers typically have structured

business operations and access to funds and hence could seamlessly adapt to the RERA guidelines. Over the

years, smaller developers have been partnering with larger developer to execute real estate projects, offering

significant partnership opportunities in terms of joint development and joint venture arrangements for organized

players. These factors are thus expected to increase the market share of the organized players in the real estate

sector. As a result, organized developers are likely to benefit owing to increase in business opportunities

coupled with reduced competition in the long term.

Due to the spread of Covid-19 the government has made suitable relaxations on certain regulations in order to

help the builders deliver their duties and obligations. As per RERA guidelines, project timelines have been

extended by one year. Maharashtra has been the first state to implement RERA. Maharashtra is considered as

the first state to initiate a conciliation forum. The forum will provide a quick and amicable resolution to complaints

filed by the buyers, saving time and cost. Such factors are expected to improve home buyer’s confidence in the

state.

GST: The Goods and Service Tax (GST) Act came into effect in July 2017 with an objective to simplify the

complex taxation structure. The implementation of GST on real estate has been structured in a manner that is

expected to reduce the tax burden on developers as well as buyers. The GST regime also enabled real estate

developers to pass on the savings in taxation to its buyers, by claiming input tax credit for the project’s under-

construction (completed projects are exempted from GST). Under the pre-GST regime the Value Added Tax

(VAT) + Service Tax cumulatively accounted for 5.5% to 8.5% of the property price across states in India. The

GST for under construction projects was initially pegged at 12%. The GST Council in January 2018 has

recommended extension of the concessional rate of 8% GST to construction of flats/ houses of less than 60

sqm in Affordable Housing projects. Affordable Housing project has been defined in the said notification as a

housing project using at least 50% of the FAR/FSI for dwelling units with carpet area of not more than 60 sqm

in metropolitan cities and 90 sqm in non-metropolitan cities. This recommendation has been accepted and has

helped in reducing the total cost of property acquisition, helping drive sales in the affordable housing segment.

However, as of 1st April 2019, the GST rates were reduced to 1% for affordable housing projects and 5% for all

other residential projects. Under the revised GST regime, the developers cannot claim input tax credits.

RBI’s “Deployment of Gross Bank Credit” shows that the outstanding debt for the housing sector (including

priority sector) grew by 3% between March 2020 and November 2020 (up from INR 13,390 billion to INR 13,834

billion) indicating that the number of homebuyers have continued to grow despite Covid-19, albeit at a slower

rate. The continued growth reflects that buyers are likely to continue to make home purchases and are no longer

impacted by the short-term disruptions, including Covid-19


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2.5. Changes in tax liability on Joint Development (JDA)

In the 2017 union budget announcement, the government amended the capital gains tax liability policy for joint

development agreement (JDA) for real estate projects. Under the revised policy, the capital gains tax shall be

applicable in the year of completion of the project and not at the time of signing the agreement. Whereby, the

landowner would be taxed in the year the completion certificate (CC) for the project is awarded. These changes

have reduced upfront costs to initiate projects thereby making the JDA model significantly efficient for real estate

developers. Moreover, this move enables the developers to split their financial liabilities and risks with

landowners while launching new projects, especially in cities with high land rates such as Mumbai.

2.6. REIT Policy and way forward

While the Securities and Exchange Board of India (SEBI) had been trying to implement REITs in India since

2007, it amended its rules significantly in September 2014. SEBI further amended its policies in November 2016

to remove major taxation hurdles. The revised guidelines have now made it feasible for companies to list REITs.

In the latest amendment on 1st March 2019, Securities and Exchange Board of India (SEBI) reduced the

minimum investment limit in REIT to ₹50,000 from ₹2 lakh, making it easier to invest in a REIT. Following the

pandemic, the SEBI recently eased the due date for the REIT regulatory filings for FY21 that ended on 31st

March 2021.

The first REIT initial public offering (IPO) in India was made by Embassy Office Parks that opened its bids in

March 2019. The second REIT in India was introduced in July 2020, the K. Raheja Mindspace REIT followed

by Brookfield India REIT in February 2021. While REITs are expected to support growth of commercial real

estate in the country, permitting REITs to invest in the housing sector can further help developers get better

access to funds, provide an option for developers to exit their projects and help drive growth of housing sector

in India.

2.7. Urbanization

As per the 2001 census about 27.8% of India’s population lived in urban areas. This increased to 31.2% as per

the 2011 census. A report by United Nations (UN) has forecasted that India is likely to add 300 million new

urban residents by 2050. The concentration of employment opportunities, education centers, social

infrastructure, etc. in urban areas are some of the key factors attracting people to migrate to urban areas. The

government initiatives for city development such as smart cities, Atal Mission for Rejuvenation and Urban

Transformation, etc. are focused easing stress on city infrastructure and accommodating rapid urbanization;

thereby improving livability standards for those living in urban areas.

Maharashtra accounts for highest (13.5%) share in urban population, with Mumbai being the most populated

city in India and having the highest population density, 32,303 people per sq.km. (Mumbai City District) as per

the Census 2011. Pune is the 8th most populated city in India and has density of ~5,600 people per sq.km2. The

population density of Thane district is ~1,160 people per sq.km. Owing to such rapid urbanization, especially in

cities such as Mumbai and Pune, the central parts of such cities are nearly saturated in terms of real estate

development and availability of land. The real estate growth has therefore been shifting towards the peripheral

locations that have availability of land and property prices are more affordable, leading to expanding boundaries

of these cities.

With rapid expansion of city boundaries and increasing population, the infrastructure in most cities is grossly

inadequate. The local governments have increased their focus on improving public transport systems, road &

2 Source: World Population Review


| C&W | 12

rail connectivity, infrastructure, etc. to improve livability in cities, whereas the central government is focusing in

developing smaller towns under initiatives such as the Smart City mission, to de-stress the metro and Tier 1

cities.

3. IMPACT OF UNIFIED DEVELOPMENT CONTROL AND PROMOTION REGULATIONS FOR

MAHARASHTRA STATE (UDCPR)

In December 2020, Government of Maharashtra sanctioned the Unified DCPR which is applicable to all the

municipal corporations except MCGM, MIDC, NAINA, JNPT, Hill Station Municipal Council and Lonavala

Municipal Council. Apart from these municipal bodies the special planning areas under MCGM jurisdiction, other

special planning areas and authorities, eco-sensitive / eco-fragile zones are also exempted. However, the

UDCPR is applicable for town planning schemes.

The new UDCPR has increased the basic FSI to 1.50 from 1 in congested areas for plot with access road below

9m and the basic FSI to 2 from 1 for plot above 9m wide access road. Developers can buy additional FSI on

the payment of premium and load the TDR as per market rate on the basic FSI to exploit the maximum

development potential. This would give an advantage to the plots which has access road less than 9m. In earlier

DCR, the plots having access road less than 9m were entitled to utilized only basic FSI which was 1.

Thane Municipal Corporation DCR had the basic FSI of 1 for plot having access of 9m and above. The maximum

permissible additional FSI was 0.5 and maximum permissible TDR loading was 1.4. Thus, the total development

potential for the plots having access road of 30m and above becomes 2.70 which was the maximum permissible

FSI in TMC area. In case of the similar development by applying the UDCPR 2020, the total development

potential increases to 3.00 for plot having access of more than 9m. The ancillary area FSI up to the extent of

60% of the total proposed FSI which includes basic FSI, additional FSI on payment of premium and TDR is

allowed on the payment at 15% of the ready reckoner rate for Thane and Pune Municipal Corporation Areas.

This ancillary area FSI is applicable for all other schemes such as TOD, PMAY, URS, ITP, IT and MHADA

except SRA. As per TMC DCR, the FSI computation was done on the net plot area. However, as per UDCPR

2020 the computation of additional FSI and TDR to be calculated is on gross plot area. Thane Municipal

Corporation used to charge additional FSI at the 60% of ready reckoner rates for residential use but in UDCPR

2020, this rate has been reduced to 35% for residential. However, the state government may revise the

percentage and ready reckoner rate time to time.

In case of Pune Municipal Corporation, the FSI computation for all the components such as basic FSI, additional

FSI and TDR was calculated on the net plot area which excludes amenity spaces and recreational open spaces

as per PMC DCPR 2017. Whereas in the UDCPR 2020, the FSI computation of basic FSI is to be done on net

plot area and additional FSI & TDR to be calculated on gross plot area. This FSI computation increases the total

development potential considerably giving the developers an opportunity to construct larger developments.

Refer Annexure 12 for detailed break-up of the FSI norms under the UDCPR 2020.

As per the latest Govt. Resolution by the Govt. of Maharashtra, dated 14th January 2021, the developer can

avail the 50% rebate in the development premium. However, the developer has to submit a certificate to the

municipal corporation that the entire stamp duty on the units purchased is borne by him. The rebate will be

payable on such projects till 31st December 2021.


| C&W | 13

4. INDIA RESIDENTIAL REAL ESTATE OVERVIEW3

India’s current population is 1.3 billion and is expected to overtake that of China by 2030. This large population

provides a huge base for India’s real estate sector, especially in tier 1 cities such as Mumbai and Pune owing

to rapid urbanization. As per industry estimates, the housing sector is expected to account for ~13% share in

India’s Gross Domestic Product (GDP) by 2025 and the cumulative real estate sector is expected grow to USD

1 Trillion by 20304. The real estate sector is considered as the largest employer after agriculture in India.

Post the impact of RERA, Demonetization and GST in 2017, the cumulative new unit launches in India’s top 8

cities were growing rapidly, recording 76% Y-o-Y increase in new units launched in CY18 and further 56% in

CY19. While the pandemic in 2020 restrained this growth, the overall new launches were yet higher than those

recorded in CY16 and CY17. The residential real estate market is already starting to see the revival with demand

significant rise in demand and supply. Over the last few years including 2020, the Western cites (Mumbai &

Pune) have remained resilient compared to other cities in India. These two cities cumulatively accounted for

46% share in new unit launches during the first half of CY21. On an average, Mumbai and Pune cumulatively

have accounted for over 44% of the share in new launches since 2016. This demonstrates western cities to be

more stable real estate markets as compared to other major cities in India.

Figure 2

Rest of India: Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata

Western Cities: Mumbai, Pune

3 Refer Note in Annexure 9 for data coverage and limitations 4 Source: IBEF India Real Estate Industry Report, November 2020

75% 79% 75%61%

54% 56% 53% 55% 54%

25% 21% 25%39%

46% 44% 47% 45% 46%

CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 H121

New Unit Launches Rest of India Western Cities


| C&W | 14

4.1. Comparative Analysis of Residential Markets

Unit sold in 2020: The Western markets continue to perform better recording significantly higher sales volume

in 2020 compared to other key markets in India. Most of the key cities witnessed lower sales in comparison to

2019 as 2020 was an irregular year. However, market dynamics are expected to regain to 2019 levels by

CY21/CY22.

Figure 3

*The units reflected in the above graph are the total units sold in CY20, irrespective of the launch year of the projects.

Average Price Realization in 2020: The average price realization is the highest in Mumbai. Moreover, with

Mumbai having the highest sales volume, the real estate developers in Mumbai may have the potential to

generate higher revenues compared to other cities in India.

Figure 4

New Sales Value for 2020: Covid 19 has impacted the overall sale value realization across major cities in India.

However, Mumbai witnessed the highest sales volume as well as average price realization, the cumulative sales

volume is also the highest in Mumbai i.e. INR 288 billion. Supported by a population with a wide income and

demographic spectrum, MMR is the highest revenue generating real estate market, having the largest

residential sales and the highest average sale price.

60,292

14,956

23,576

10,042

MMR Pune Bengaluru Hyderabad

Units Sold in CY20*

23,044

9,645 10,1678,833


Average Price Realization per sq.ft. (Carpet Area) - CY20


| C&W | 15

Figure 5

4.2. Affordable and Mid-income housing5

CY20 witnessed a turnaround with a 38% decrease in new unit launches Y-o-Y. The affordable and mid-income

housing continue to account for the largest share in new unit launches and accounted for ~88% of the share in

CY20. The new launches in the first half of CY21 also holds largest share in this segment accounting ~80%.

The increase in share can be attributed to the government’s efforts towards affordable and mid-income (AMI)

housing coupled with consistent demand in the segment, especially from the end-users. The affordable and

mid-income (AMI) segment is the largest segment and is expected to continue to be the largest segment in the

coming years. The Western cities cumulatively accounted for only 19% of new unit launches in CY14 within the

AMI segment. However, the share since then has increased to 48% in CY20 and then to 51% in H1 of CY21

(Figure 6). Whereas, the share of Southern cites in new unit launches in AMI segment has declined from 47%

in CY14 to 26% in CY20, however it slightly rose to 31% in H1 of CY21. Similarly, Delhi NCR has witnessed the

share in new unit launches decline from 21% in CY14 to 7% in CY20, and it further dropped to 4% in H1 of

CY21 within the AMI sector.

Figure 6

Other: Ahmedabad, Kolkata Northern: Delhi NCR

Southern: Bengaluru, Chennai, Hyderabad Western: Mumbai, Pune

5 Category definitions are for discussion purposes only. Refer Annexure 9

288

76

217

80


New Sales Value - CY20 (INR, bn)

8% 12% 18% 19% 16% 12%19% 18% 13%

31% 21%22%

10% 12%4%

7% 7%4%

39% 47% 36%

31%25%

36%24% 26%

31%

23% 19% 25%39%

47% 48% 49% 48% 51%


Share of New Unit Launches (Pan India - AMI Housing) Other Northern

Southern Western


| C&W | 16

The new supply across all housing segments had declined significantly during the first half of CY17, owing to

uncertainties arising from policy announcements such as RERA and GST. However, the market regained

momentum rapidly with new unit launches increasing by 76% in 2018 and further by 57% in 2019. The buyers

are also regaining interest in the real estate market in India owing to better governance and accountability

induced by RERA coupled with positive government policies such as CLSS, affordable housing, etc.

4.3. Impact of COVID on Real Estate Sector

COVID-19 outbreak has plunged global businesses into uncertainty. The COVID 19 pandemic brought all

businesses to standstill in the year 2020, unsettled different verticals of the world. The Indian Real Estate

segment has also been hit hard. Of course, different asset types were at different stages in their journey, but

the impact has reverberated across all. Various scenarios are being built and the impact across asset classes

and the investment climate is bound to be different and hence recovery periods will be different as well.

In terms of new launches, sales and acquisition, both residential and commercial real estate are impacted. Due

to a lack of social security to construction labourers, the reverse migration of labour force and shortage of

material braced the developers on setbacks at the outbreak of pandemic, COVID-19 nearly stalled the market

till the end of H120. However, contrary to majority sentiment at the time, the market has in fact seen a steep

recovery in sales volume alike pre-COVID-19 levels till the end of 2020 as a result of vaccine made available

and promotional stimulus packages offered by government.

As developers continued to offer various payment incentives to attract homebuyers along with the reduced

stamp duty, housing demand spiked, and the sales activity remained healthy in first quarter of 2021. However,

the second hit of COVID wave in March 2021 slowed down the real estate sentiment marginally.

COVID-19 has manifested a major proportion of the workforce to confine at homes as a mitigation measure to

the spread of the virus. This has resulted in both employers and employees seeking alternative work

arrangements, specially the white-collar corporate that have a major share of occupancy in office spaces. This

obligation despite turned into a culture and has driven demand for housing. Thus, sustained income, lucrative

offers by developers, government interventions such as stamp duty cuts and moratorium grace had derived a

new trend to possess spacious and luxury homes. Second homes market has also picked up demand due to

Covid. With the lifestyle change due to the pandemic, demand for getaways is high. Trend of shifting residence

away from crowded cities to luxurious holiday homes is a transformation in the realty sector. Not everyone can

afford a property in the city area in metros like Pune or Mumbai. Thus, destinations like Talegaon have the

advantage of being situated near Mumbai and Pune. Due to its affordable market, connectivity & infrastructure,

the Talegaon is seen as new option for second home buyers.

Impact on Mumbai markets: MMR due to its high population density was one of the worst affected urban

agglomerations by the COVID-19 pandemic. Mumbai’s residential market saw the launch of about 5,900

residential units in Q2 2020. New launches had declined considerably, making it the weakest quarter of all-time

in terms of market activity as the lockdown in Mumbai remained in force in the face of rising infection cases.

Sales also came to a standstill in the month of April and construction labourers migrated back to their hometowns

bringing construction activity to a complete standstill as well. Of the total units launched in 2020, approximately

39% were sold.

Again, at the resurgence of COVID and rising infection levels back in 2021 in the city, Mumbai’s residential

sector witnessed launch of 10,732 units during the first quarter of 2021 with a marginal q-o-q drop of 6.5%. But

despite rising COVID cases and localised lockdowns, sales remained healthy during Q2 2021 due to attractive

incentives by developers and flexibility of four months to homebuyers to register a property after the payment

of stamp duty as compared to the worst hit second quarter of 2020.


| C&W | 17

Impact on Pune markets: Pune has also been amongst the worst affected cities in India by the pandemic. The

total number of units launched in Pune stood at 1,848 in Q2 2020, as compared to about 9,800 units launched

in Q2 2019. Sales activity was sluggish on account prevailing weak demand sentiment despite attractive home

loan rates and government incentives for affordable housing. The situation improved in Q3 2020, with gradual

growth in sales and launches and started to pick up from September 2020 onwards after the announcement of

a reduction in stamp duty rates by the Maharashtra State Government.

Pune witnessed launch of nearly 8,403 units during the first quarter of 2021 and continued to witness improved

sales momentum in Q1 2021 backed by stamp duty reduction and various discounts and benefits offered by the

developers. Amid second wave of COVID in Q2 2021, Pune witnessed a q-o-q decline in new launches with

approximately 4,800 units launched. However, sales grew considerably in Q2 2021 on y-o-y basis.

The stamp duty cuts from 5-7% to 2-4% by government of Maharashtra effective from September 2020 for a

limited period of 7 months (further extended) has catalyzed the residential market of Mumbai & Pune, with sales

jumping up sharply. Reduction in stamp duty was a definite game-changer. It was a significant catalyst for higher

sales in two key markets - Mumbai Metropolitan Region (MMR) and Pune to nullify the adverse impact of COVID.

Also, in order to ease the uncertainty and continue the viable functioning of real estate businesses, the Reserve

Bank of India allowed banks and other lending institutions a three-month loan moratorium on EMI from March

to May 2020 and then further extension by additional three months on all term loans, EMIs and other loan

repayment instalments outstanding till August 31, 2020 following the disruptions caused by COVID-19. Benefits

of the loan moratorium was availed by several individual borrowers and developers and helped to alleviate some

of the pressure on developers and focus on sales. While for homebuyers, the loan moratorium is a temporary

respite and provides additional time to sort out their finances. Reports by credit bureaus indicate that the highest

defaults are in the premium segment and has forced many banks to resort to more aggressive measure to make

recoveries. Thus, RBI has not announced any new home loan moratorium schemes after the second wave of

the Coronavirus pandemic in 2021, else provided restructuring options for the pandemic affected borrowers

who did not avail the facilities offered during the first loan moratorium.


| C&W | 18

5. MUMBAI METROPOLITAN REGION (MMR) MARKET OVERVIEW

5.1. MMR Demographic and Economic Profile

Mumbai, with a population density of ~21,000 per sq.km. is one of the most populous cities in India as well as

the world. The MMR region recorded a population of 18.4 million in the 2011 census of which, Mumbai city itself

recorded a population of about 12.5 million. The rapid growth in population is largely attributed to large immigrant

population that comes to Mumbai in search of business and employment opportunities. Owing to limited

availability of land in Mumbai Island city, most of the development is shifting towards Thane and Navi Mumbai.

Table 2

Demographic Profile

Parameters Greater Mumbai Navi Mumbai Thane City

Population (million) 12.5 1.12 1.89

Average Literacy Rate 89.78% 89.62% 89.41%

Sex Ratio* 863 837 888

Population Density / sq.km. 21,000 10,318 13,000

Area (sq.km.) 603 108.6 147

Source: Census 2011, MCGM, NMMC, MoHUA, http://citypopulation.info

About 69% of MMR’s population is in the age group of 20-49 years offering a large workforce population for

business and commercial activity. The household income levels for Mumbai MMR indicate that about 28% of

households fall in the middle-income bracket (INR 5 -20 lakhs per annum) and 29% in greater than INR 20 lakhs

bracket.

Figure 7

Source: Census of India, Indicus Analytics

Mumbai is the capital city of Maharashtra. It is also considered as the financial capital of India with GDP

(nominal) per capita of INR 342,447 (USD 4,682). Mumbai has become a major economic center of India,

contributing the highest share in GDP (USD 209 billion) and accounts for 25% of industrial output.

11%

28%

22%

17%

11%

7%4%

Age-wise share in population (MMR)

15-19 years 20-29 years 30-39 years 40-49 years

50-59 years 60-69 years > 69 years

12%

9%

13%

10%

28%

29%

Series 1

Income-wise share in population (MMR)

> INR 2,000,000 Rs. 500,001 - Rs. 2,000,000

Rs.300,001 - Rs.500,000 Rs.150,001 - Rs.300,000

Rs. 75,000 - Rs.150,000 < Rs. 75,000


| C&W | 19

The National Stock Exchange and the Bombay Stock Exchange are based in Mumbai. These exchanges

cumulatively account for about 92% of the total turnover of the India stock markets which represents virtually

the total market capitalization of India's corporate sector. Several nationalized banks have their headquarters

located in Bandra-Kurla Complex (BKC), Mumbai, making BKC a hub for the Banking sector. Moreover, about

80% of mutual funds are registered in Mumbai and as per market estimates, almost all Foreign Institutional

Investor (FII) investments and over 90% of merchant banking transactions take place in Mumbai. The IT- BPM

sector also has a major presence in Mumbai. Over the past few years, the Thane-Belapur has become a base

for IT-BPM and back office operations in MMR.

Apart from BFSI & IT-BPM, the peripheral locations on Mumbai are also major economic drivers. Being a coastal

city, MMR is home to the busiest port in India; the Jawaharlal Nehru Port Trust (JNPT) and hence forms a very

important economic node of the country. Bhiwandi and Panvel serve as logistic and industrial hubs of the city.

MMR therefore attracts large migrant population owing to employment opportunities. Apart from a large working

population, the region has significant presence of student community due to the presence of several established

colleges and research centers. Consequently, the city has developed into a cosmopolitan and witnesses a

sizeable demand for housing from end-users as well as investors.

5.1.1. MMR Infrastructure Initiatives (Refer Annexure 1 for Maps)

Table 3

Project Details Impact Status

Road Infrastructure Projects

Mumbai Trans Harbour Link

22 Km long, 6 Lane bridge over

the Thane Creek, Connecting

Sewri to Nhava-Sheva

• The project will save travel time between

South Mumbai and Navi Mumbai and

reduce traffic congestion along the Sion

Panvel Highway.

Currently the bridge is

under construction and

expected to be completed

by 2024.

Coastal Freeway

22.2 Km long road from Marine

Lines to Kandivali along the

western coastline of Mumbai

• The project will reduce travel time

between North and South Mumbai

locations and expected to reduce traffic

congestion on western express highway

and S.V. Road.

The project has been

approved and cleared by

the government. It is under

construction and expected

to be completed by 2024

Goregaon-Mulund Link Road

6 Km long partly underground

road through Sanjay Gandhi

National Park (SGNP) from

Goregaon to Mulund

• The project will ease traffic congestion on

along the Jogeshwari-Vikhroli Link Road

(JVLR) and improve connectivity between

Western and Central Suburbs.

Expected to be completed

by 2024

Borivali-Thane Link Road

11.80 km Thane-Borivali linking

road twin-tunnel, passing

underneath the Sanjay Gandhi

National Park (SGNP) costing

approx. INR 11,235 Cr

• The six-lane twin tunnel would allow

vehicles lessen the travel time, from

current one hour journey to only 15

minutes from Borivali on the Western

Express Highway to Thane, besides

decongesting the Ghodbunder Road.

Took over by MMRDA from

MSRDC, and proposed to

begin the work by March,

2022

Airport Infrastructure


| C&W | 20

Navi Mumbai International

Airport

Greenfield airport covering

1,160 hectares of land near

Navi Mumbai. The proposed

airport will have 2 parallel

runways

• The new airport will reduce the passenger

load on the existing Chhatrapati Shivaji

International Airport.

• It will also improve domestic and

international air connectivity.

The project is under

construction and the first

phase is expected to be

operational by 2023.

Proposed Metro Rail Lines

Dahisar-Andheri

17 Km Metro Line from Andheri

to Dahisar along Western

Express Highway connecting

existing metro line at Andheri

• The Metro line is expected to reduce

passenger load on suburban rail network

as well as traffic congestion on the

Western express highway.



to be completed by 2022.

Dahisar-Mankhurd

42.23 Km metro line from

Dahisar to Mankhurd

• This line will reduce traffic congestion on

S.V. Road and Link Road. The rail

connectivity will also improve between

Western and Central Suburbs.

The Phase A of the project

from Dahisar to D.N. Nagar

is under construction.

Expected completion -

2022.

Wadala-Kasarvadavali

32 Km metro line from Wadala

to Kasarvadavali

• This line will reduce traffic congestion on

Eastern Express Highway and also

reduce travel time to Thane.




Colaba-Bandra-SEEPZ

33.5 Km fully underground

metro line connecting major

commercial hubs and transport

nodes

• The Line will connect the major

commercial hubs of CBD, Off-CBD, SBD

and transport nodes like CSMT,

Churchgate, Dadar and Mumbai

International Airport




Lokhandwala-Jogeshwari-

Vikhroli

14.5 Km metro line connecting

Lokhandwala Andheri to

Vikhroli and Kanjurmarg

• The Line will reduce traffic on Jogeshwari-

Vikhroli Link Road (JVLR) and connect

locations that are currently do not have

rail connectivity.




Thane-Bhiwandi-Kalyan

24.9 Km metro line from

Kasarvadavli to Kalyan Station

• The line will connect Bhiwandi and other

micro-markets that are currently not

connected by the suburban rail network. It

will also reduce traffic along the Thane-

Bhiwandi Bypass.




Navi Mumbai Metro

23.4 Km metro line from CBD

Belapur to Khandeshwar via

Kharghar and Taloja

• The Metro network will improve

connectivity between suburbs of Navi

Mumbai and interlink with the existing

suburban rail network of Mumbai.


construction and Phase 1 is

expected to be completed

by 2022.

Mumbai Monorail – Phase 2

11.2 Km long monorail line from

Jacob Circle to Wadala

connecting Phase 1 of the

existing monorail line

• The line will connect the areas which are

not currently connected with the suburban

rail lines and metro network.

The project is completed

and fully operational as of

2019.


| C&W | 21

5.1.2. MMR Commercial Real Estate Overview

Mumbai’s Commercial Real Estate market can be divided in 5 micro-markets namely, Central Business District

(CBD), Off-CBD, Bandra Kurla Complex (BKC), Suburban Areas and Peripheral Business District (PBD). Each

of the commercial micro-market have distinctive characteristics and occupier profile.

Figure 8

Central Business District (CBD): This is the oldest commercial hub of the city which includes Ballard Estate,

Colaba, Churchgate, Fort and Nariman Point areas. Corporate headquarters and professional services are the

prime occupiers in this micro-market. Average quoted rental value is INR 241 per sq.ft./month

Off-CBD: The micro market evolved as a spillover for CBD. The presence of several textile mills provided the

opportunity for redevelopment. Most of the mills have now been re-developed as commercial or residential

projects. Locations include Lower Parel, Prabhadevi, Worli and Parel. Companies from the Banking, Financial

Services and Insurance (BFSI), Non-IT and Media & Entertainment sectors are the prime occupiers in this

micro-market. Average quoted rental in Worli is INR 220 per sq.ft./month and average quoted rental in Lower

Parel is INR 177 per sq.ft./month

Bandra Kurla Complex (BKC): BKC is a planned development to decongest CBD and is popularly known as

the BFSI hub of Mumbai. Apart from BFSI, the market constitutes corporate headquarters of domestic and

global conglomerates. It has evolved as the new CBD of Mumbai. The average quoted rental is INR 266 per

sq.ft./month.

Suburban Areas: This micro-market has emerged due to proximity to airport and residential hubs. Andheri-

Kurla Road, Malad, Goregaon, Vikhroli and Powai are the submarkets included in this micro-market. IT-BPM

back offices, Non-IT front offices and manufacturing are the main occupiers in this micro-market. Average

quoted rental in these markets range between INR 110 and 141 per sq.ft./ month.

Peripheral Business District (PBD): The peripheral commercial micro-markets evolved owing to availability

of land for larger developments, especially to cater to the back-office/processing center demand. It also provided

expansion opportunity for occupiers with larger requirements. Thane, Vashi, Airoli, Thane-Belapur Road are the


| C&W | 22

key submarkets in this region. Most office space developments/IT parks have been built to cater to the back-

end operations for IT, BFSI and Manufacturing companies. Average quoted rental these locations range

between INR 66 to 92 per sq.ft./month.

Figure 9

The cumulative office space in Mumbai at the end of H1CY21 was about 103.4 Mn.sq.ft. The Thane-Belapur

has emerged as the largest market of office space in Mumbai, accounting for about 21.7% of the Grade A

inventory. There is over 11.45 Mn.sq.ft. of office space currently under construction in MMR, of which 15% is in

Thane-Belapur Road. Residential hubs around Thane-Belapur Road such as Thane, Airoli, etc. are expected

to benefit from this concentrated development, as demand for residential properties is likely to remain high,

especially from the workforce employed in this business district.

Figure 10

Availability of land, low rental and planned development are the key factors driving the shift of office inventory

to emerging locations such as Airoli and Thane-Belapur Road (TBR). While the major commercial office space

development commenced in 2009, the recent years have witnessed occupiers shifting towards peripheral

locations. The share of TBR in net absorption has therefore increased to 28.7% in H121 as against 13% in

CY09. Considering the current pipeline of supply, Mumbai’s office inventory is expected to reach ~111 Mn. sq.ft.

by 2022. Owing to high volume of upcoming supply, the vacancy is forecasted to increase to about 18% vacancy

by 2022. About 30% (4.3 Mn. Sq.ft.) of the upcoming supply is concentrated in the micro-market of Thane and

31

.8

38

.5

45

.5

50

.9

53

.9

60

.8

63

.5

65

.5

68

.6

76

.8

79

.3

80

.6

7.310.3

13.312.3

14.910.8 13.1 14.7

18.117.8

20.9 22.8

0

20

40

60

80

100

120

CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 H121

Occupancy Stock & Vacancy (MMR)

Occupied Stock (mnsf) Vacancy Stock (mnsf)

5.6

2.9

5.3

3.0

6.5

5.2

5.6

6.7

4.13.8

3.5

3.1

2.9

3.3

5.2

2.5

4.7

5.0

22%

15%17%

18%21%

19%

21% 19%

18%

0%

5%

10%

15%

20%

25%

0

1

2

3

4

5

6

7

8

2014 2015 2016 2017 2018 2019 2020 2021F 2022F

Supply & Net Absorption Dynamics in MMR

Supply (Mn.sft) Net Absorption (Mn.sft) Vacancy Rate (%)


| C&W | 23

Thane Belapur Road. Other suburban micro-markets including Andheri, Malad and Goregaon cumulatively

account for about 25% of the upcoming supply (3.7Mn. Sq.ft.).

5.1.3. MMR Retail Market Snippet

Mumbai’s retail market activity was traditionally ‘High Street’ format located largely in Colaba, Kemps Corner,

Linking Road. In year 2000, with the development of Crossroads Mall, Mumbai witnessed the organized retail

development. Since then Mumbai has observed rise in organized retail across major locations like Lower Parel,

Andheri, Goregaon, Malad, Kurla, Thane and Navi Mumbai. These malls are primarily concentrated in suburban

locations due to availability of land and proximity to high density residential development and commercial hubs.

High Street Phoenix and Palladium in Lower Parel, Phoenix Market City in Kurla, Infinity Mall in Andheri, Oberoi

Mall in Goregaon, Inorbit Mall in Malad, Korum and Viviana Mall in Thane and Seawoods Grand Central in Navi

Mumbai have the international brands and large format retail stores. Refer Annexure 2 for Retail Market Spread.

5.1.4. MMR Residential Real Estate Overview

Owing to the large size of the city, MMR’s residential market can be divided into 9 sub-markets i.e. South

Mumbai, Central Mumbai, Eastern Suburbs, Western Prime, Western Suburbs, Western – Extended, Thane,

Thane – Extended, Navi Mumbai. Each of these sub-markets comprises of distinct market dynamics as well as

project categories. E.g. South Mumbai comprises of mainly luxury and high-end segment housing while markets

such as Western and Eastern Suburbs, Thane and Navi Mumbai have typically mid-end housing projects.

Figure 11

*The units reflected in the above graph are the break-up of the units sold/unsold from the total units launched in respective years.

MMR witnessed supply of ~403,6866 units between CY14 – H121 with CY14 recording the highest launches

(~74,000 units). While the new launches declined in CY16 owing to demonetization and implementation of

RERA, the new launches have been set on growth trajectory since CY17 with CY18 recording 53% growth over

the previous year. In CY19 the new unit launches further increased by 20% over CY18. The sales have also

increased steadily over these years. While the decline in new launches and sales in 2020 can largely be

attributed to the lock-down which stalled all market activity for almost two quarters i.e. Q2 & Q3 of CY20. The

market sentiments however remain positive with both sales and new launches gaining momentum immediately

from Q4 of CY20, as lock-down rules were being relaxed. Also, with the relaxation in the stamp duty percentage

till March 2021, H121 witnessed new launches.

About 1,500 units were launched new the Thane micro market in H121, mostly in and around Ghodbunder road.

Prominent projects include phases of Lodha Sterling, Insignia Metropolis, Ten X Habitat by Raymond and so

on. Of the new launched more than 400 units are already sold. Also, CY20 being COVID impacted year

6 The analysis excluded SRA Projects, Government Housing schemes. Redevelopment Projects.

43,502 42,098

20,812 17,246

31,498 33,86427,277

15,569

30,506 30,550

10,752 19,354

24,325

32,977

17,145

6,211

CY14 CY15 CY16 CY17 CY18 CY19 CY20 H121

Y-o-Y Supply-Absorption Trend in MMR* Unsold Units

Sold Units


| C&W | 24

witnessed launch of approx. 4,700 units in Thane micro market against more than 37,000 and 10,000 units in

2018 and 2019 respectively.

Figure 12

About 90% of the units launched between CY14 and H121 were in the Affordable and Mid-income markets..

While, factors such as Demonetization and RERA contributed in contraction of new unit launches in second half

of CY16 followed by implementation of GST in Q2CY17 the markets since then have stabilized. Between

Q3CY17 and Q1CY20 with the new unit launches witnessing significant growth. At the resurgence of pandemic,

launches in Q1CY21 were down by 48.7% YoY, which indicates that sustained recovery is still a few quarters

away. The Thane and Thane Extended markets such as Dombivali, Kalyan, etc. have emerged as the most

prominent mid-income markets in MMR and cumulatively account for ~57% of the market share in terms of

number of units launched during H121. The reason for the focus of developers on launches in the affordable &

mid income segment is the relatively better demand from end users in the segment compared to the High-end

and Luxury segments, resulting in better sales volume and velocity.

Figure 13

While residential development in the South Mumbai and Central Mumbai is restrained due to limited land

availability, residential development is expanding into peripheral areas such as Thane and Navi Mumbai owing

to availability of land parcels, lower land prices and demand for mid-income and affordable housing units. Over

the last decade locations such as Thane and Navi Mumbai have evolved significantly and have established

social and physical infrastructure to support the rapid residential market growth in these locations. Some of the

key residential locations in Thane include Ghodbunder Road, Eastern Express Highway, Pokhran Road, Kolshet

and Balkum. In Navi Mumbai the prominent locations Kharghar, Seawoods, Taloja and Nerul. These residential

13,8

10

7,6

17

6,5

46

8,6

27

12,1

81 2

0,2

59

12,2

11

11,1

72

14,1

44

26,2

79

15,0

04

11,4

14

20,9

24

5,9

24

6,1

80

11,3

94

10,7

32

11,0

48

Q1CY17

Q2CY17

Q3CY17

Q4CY17

Q1CY18

Q2CY18

Q3CY18

Q4CY18

Q1CY19

Q2CY19

Q3CY19

Q4CY19

Q1CY20

Q2CY20

Q3CY20

Q4CY20

Q1CY21

Q2CY21

Q-o-Q New Units launched in MMR

89% 89% 93%87% 90% 92% 93%

87%

11% 11% 7%13% 10% 8% 7%

13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Segment-wise Y-o-Y Supply Affordable & Mid-End

High-end & Luxury

Stable growth in new launches form Q4 2020


| C&W | 25

micro-markets primarily offer mid-end segment housing with 1, 2 and 3 BHK configurations. The monthly sales

velocity in Thane and Thane Extended at 3rd position amongst other micro markets in MMR, recording average

monthly sales of 1,064 and 896 units, respectively for the project currently being marketed.

With the development of Ghodbunder Road and evolving commercial hubs within Thane and along the Thane-

Belapur Road, Thane as a micro-Market has gained significant importance. Ghodbunder Road provides road

connectivity of these commercial hubs with the residential hubs of western suburbs. Thane also has good

suburban rail and road connectivity with other business districts in Mumbai such as BKC, Vikhroli, Kurla and

Lower Parel. The upcoming metro lines 4 (Wadala – Kasarvadavli) and 5 (Thane-Bhiwandi-Kalyan) are being

developed to improve connectivity of Thane with other part of the city and decongest the road traffic. Real Estate

developers such as Puranik, Lodha, Dosti, Godrej, etc. have their residential projects on Ghodbunder Road and

other parts of Thane.

Figure 14

Avg.

Monthly

Sales*

74 210 33 835 657 414 1,064 896 529

Highest Avg.

Monthly Sales

*Average monthly sale velocity has decreased in some micro markets during CY 2020. However, Thane micro

market still stands 1st with highest average monthly sale velocity.

6,128 69 2,233

28,128

7,000 18,903 20,831 25,820

13,560

10,868

13,113 5,490

45,924

22,034

39,422 28,336

75,152

34,519

-

20,000

40,000

60,000

80,000

1,00,000

1,20,000

SouthMumbai

CentralMumbai

WesternPrime

WesternSuburbs

Western -Extended

EasternSuburbs

Thane Thane -Extended

NaviMumbai

Submarket-wise Supply and AbsorptionSold Units

Unsold Units


| C&W | 26

Figure 15

Avg. Monthly

Sales

829 1,337 1,532 1,064

Thane micro market has witnessed growth in and areas around Ghodbunder road primarily because of

availability of land, thereby making Ghodbunder road one of the prime growth spine in Thane. Ghodbunder road

has witnessed a supply of more than 50,000 residential units in the last 3-4 years. 2019 witnessed about 8,300

new launches which dropped considerably in 2020 to approx. 3,400 new launches amidst COVID. H121 has

witnessed about 950 units new launches in and around Ghodbunder road.

The organized retail in Thane has also evolved over the last few years with the presence of Viviana Mall, Korum

Mall and R-Mall. These malls have attracted some of the top international and domestic brands to setup their

stores, improving the livability dynamics for Thane a location. The capital values in Mumbai have grown

gradually over the last 5 years in locations with low supply such as South Mumbai and Western Prime Suburbs.

While the average property prices in South Mumbai is about 96,000 per sq.ft. on carpet area, however, the

market has recorded select transactions priced over INR 160,000 per sq.ft. on carpet area in the past years.

15,201 24,209 20,176 20,831

28,512

40,642

26,896 28,336

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2018 2019 2020 H121

Supply and Absorption - Thane Micro marketSold Units

Unsold Units


| C&W | 27

Figure 16

The property prices in suburban locations are significantly lower than South and Central Mumbai. While average

property prices in Thane are around 17,000 per sq.ft. on carpet area, Navi Mumbai has average rates have

witnessed slight drop since Dec 20 and is currently at INR 11,200 per sq.ft. on carpet area making properties

more affordable for mid-income groups.

Figure 17

Currently, there are ~397,000 residential units under-construction in MMR with completion timelines until 2034.

With average monthly sales velocity of about 4,700 units, MMR has an inventory overhang of 58 months. Thane

account for the highest monthly sales velocity with inventory overhang of only 27months, which is the shortest

in MMR in comparison to the supply-demand across micro markets, reflecting higher demand for Thane

submarket. Thane alone has the lowest inventory overhang of 27 months amongst the micro markets in MMR.

70,523

95,949

56,771

77,462

21,776

31,109

29,267

39,819

28,584

39,640

15,000

35,000

55,000

75,000

95,000

Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Dec-20 Jun-21

Rate

IN

R/S

q.f

t. (

Carp

et

Are

a)

Capital Value Trends (Mumbai)South MumbaiWestern PrimeEastern SuburbsCentral MumbaiWestern Suburbs

7,4608,4267,941

11,233

8,077

12,04212,512

17,088

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000


Rate

IN

R/S

q.f

t. (

Carp

et

Are

a)

Capital Value Trends (Mumbai)Western Extended Navi Mumbai

Thane Extended Thane


| C&W | 28

Table 4

Performance Indicators Central Western

Cumulative

Eastern

Suburbs Thane

Thane

Extended

Monthly Sales Volume (Units) 210 1,525 414 1,064 896

Overhang (months) 62 253 95 27 84

The proportion of sold units in the INR 40 Lakhs to INR 1 Crore block price range the highest as compared to

the greater than INR 1 crore range. Also, the inventory overhang is of 48 months in the INR 40 Lakhs to INR 1

Crore range compared to 87 months in the Less than INR 40 lakh range, indicating that the INR 40 Lakhs to

INR 1 Crore range attracts more demand for housing units in Mumbai.

Table 5

Block Price Range - Supply-Absorption7

Block Price Range Units Sold Units Available Monthly Sales Velocity

(Units)

Less than INR 40

Lakhs 35,937 107,993 1,243

INR 40 Lakhs to INR

1cr 49,305 87,069 1,824

Greater than INR 1cr 41,092 76,318 1,646

Figure 18

5.1.5. Slum Rehabilitation Authority (SRA) Policy

The state government of Maharashtra has introduced the slum rehabilitation scheme under which real estate

developers construct tenements for the slum dwellers on the land occupied by the slum dwellers. These

rehabilitation tenements are provided free of cost to the slum-dwellers. The real estate developers are

incentivized by the government in the form of additional floor space index (FSI). The additional FSI can be sold

in the open market by the developer to recover the costs incurred for the construction of these rehabilitation

tenements. The state government in December 2017, amended the SRA policy to include huts built after

7 Projects which are scheduled to complete 2021 onwards and are currently being marketed and have been considered for the analysis.

0

20,000

40,000

60,000

80,000

1,00,000

1,20,000

CY21 CY22 CY23 CY24 CY25 CY26 CY27 - CY34

Upcoming supply based on Completion Year

South Mumbai Central Mumbai Western Prime Western Suburbs Western - Extended

Eastern Suburbs Thane Thane - Extended Navi Mumbai


| C&W | 29

January 1, 2000 within the purview of Pradhan Mantri Awas Yojana and provide homes to slum dwellers at

subsidized rates. This change in policy is expected to provide significant development opportunities for real

estate developers, especially for those having focus on affordable and mid-income housing development.

Currently, there are about 1,500 projects recorded with the SRA. Refer Annexure 7 for detailed policy terms.

5.1.6. Private Society Redevelopment 30 & 32

To provide old housing societies an opportunity to demolish and reconstruct the old building structures, the

government has implemented the Private Society Redevelopment policy. Under this policy, private housing

societies that need significant repairs and upgrades can be demolished and reconstructed. While the unit

owners get new homes along with additional FSI, the real estate developers are permitted to sell the additional

FSI to existing owners or new buyers to recover their costs incurred for the redevelopment. However, the

societies can proceed with redevelopment only if 51% of the members agree and give their consent for the

redevelopment.

The government is currently planning to provide additional FSI amounting to 15% of built-up area per flat at no

extra charge. Currently there are over 40,000 housing societies in Mumbai awaiting redevelopment proposals.

Therefore, policy provides alternative development option, especially in areas with high land prices or lack of

availability of land for development. Refer Annexure 8 for detailed policy terms.


| C&W | 30

6. PUNE MARKET OVERVIEW

6.1. Pune Demographic & Economic Overview

Pune has developed significantly from being a small town with a base for educational institutes and armed

forces, to one of largest commercial hubs of India. While the early years of development was largely driven by

mills and manufacturing units, the last 10 - 15 years witnessed emergence and growth of the IT-BPM sector.

The educational institutes in Pune continue to attract large number of students from all over India as well as

foreign countries. Whereas, the presence of IT-BPM and the manufacturing sector provide ample of job

opportunities for fresh and experienced talent. These factors contributed towards rapid growth, with the

population increasing by ~2.2 million people between 2001 and 2011.

Table 6

Demographic Profile – Pune District

Parameters 2011 2001

Population (million) 9.43 7.23

Average Literacy Rate 87.19% 80.45%

Sex Ratio 919 919

Population Density / sq.km. 600 462

Area (sq.km.) 15,643 15,643

Source: Census 2011, http://citypopulation.info

About 69% of Pune’s population is in the age group of 20-49 years, providing a large workforce for the

companies in Pune. The household income levels for Pune are also significantly high with about 28% of

households falling in the middle-income bracket (INR 5 -20 lakhs per annum).

Figure 19

Source: Indicus Analytics

Pune is the largest non-capital (state) city in India. After Mumbai, it has the highest GDP (nominal) per-capita

income i.e. INR 179,586 (USD 2,456) in Maharashtra. Pune, with an estimate GDP of USD 69 billion is one of

the top cities contributing to India’s GDP. The Manufacturing, IT and Education sectors are the key economic

15%

11%

14%

11%

28%

20%

Series 1

Income-wise share in population (Pune)

> INR 2,000,000 Rs. 500,001 - Rs. 2,000,000

Rs.300,001 - Rs.500,000 Rs.150,001 - Rs.300,000

Rs. 75,000 - Rs.150,000 < Rs. 75,000

11%

24%

26%

19%

13%

7%

Age-wise share in population (Pune)

15-19 years 20-29 years 30-39 years

40-49 years 50-59 years 60-69 years


| C&W | 31

drivers of the city and contributing to make Pune Municipal Corporation the second largest in Maharashtra in

terms of revenue.

Owing to the presence of several prominent educational institutes, it is considered as the “Oxford of the east”.

Some of the oldest institutes in India such as College of Engineering, Pune (COEP) was setup in 1854. The

Pune university was setup in 1949 and is one the premier Universities in India. Pune University is ranked at No.

10 in the National Institutional Ranking Framework (NIRF) ranking of the Ministry of Human Resource

Development, in 2019. The manufacturing sector in Pune has significant presence of the automobile and

automotive ancillary segment. Most of these companies have the manufacturing units located in the northern

parts of the city such as Pimpri, Chinchwad, Talegaon, Chakan, etc. Apart from Indian and International

automotive giants have their manufacturing & Research & Development centers based in Pune, the Automotive

Research Institute of India is also based here and provides research, development, testing and certification

services.

Most of the prominent domestic and international IT-BPM companies have their operations in Pune with the

western & eastern quadrants of the city being the hubs for such companies. While presence of large private

land parcels in the east led to development of business parks in the east, the west was largely driven by the

government demarcating 2,800 acres of land for the Rajiv Gandhi Infotech Park at Hinjewadi. Pune also benefits

from its proximity to Mumbai. The Mumbai-Pune Express way has further contributed in improving connectivity

and reduce travel time between the two cities. Pune in recent years has seen significant real growth in locations

along the NH 48/Expressway. Further, with improvement in infrastructure (upcoming and proposed) coupled

with employment opportunities especially from the Manufacturing and IT-BPM sectors, Pune is expected to

remain on the its growth trajectory creating significant opportunity for the real estate sector.

6.2. Pune Infrastructure Initiatives (Refer Annexure 4 for Maps)

Table 7


Pune Metro Rail

3 Lines in Phase 1 and 2 in Phase 2,

covering total distance of ~55 kms.

Will be elevated and underground

across sections of the route.

The connectivity of city will

improve significantly in most

parts of the city. Commute for

the large workforce across the

employment nodes in the city will

become easier.

The construction of the

project is currently in

progress. The Phase 1 of line

1 is scheduled to be

operational by 2022 whereas

Line 3 is expected to

commence operations in

2023.

Bus Rapid Transit System (BRTS)

The BRTS is network of dedicated bus

lanes. A network of 113 kms across the

city has been planned. 6 Routes have

been planned in Phase 1.

BRTS will help in improving the

connectivity and reduce travel

time and congestion in the city.

Five routes including Nashik

Phata to Wakad have been

completed and are

operational. Other routes in

various stages of

development.

Aundh Baner Balewadi (ABB) Smart

City

Under the smart city initiative, 900 acres

across Aundh-Baner-Balewadi will be

developed to include excellent

infrastructure facilities and connectivity.

The development will help

attracting employment and boost

the economic scenario in the

city.

About 24 smart city features

are proposed to be

implemented in this region,

making ABB future ready.


| C&W | 32


Pune International Airport

A new airport has been proposed to be

developed at Purandar.

Since Pune airport is a defense

base, the new airport will help in

managing the traffic of

passengers.

The proposed land of 2,400

hectares has been identified

and approved. The airport will

take 5 years to complete i.e.

by 2022.

PMR Inner Ring Road

65 m wide 123.35 km Ring Road shall

be developed by PMRDA as

provisioned in its Development Plan

2041. Construction of this project is

taken on priority as it is an ambitious

project of the state government as was

also included in the sanctioned

Regional Plan of Pune district.

The proposed ring road will

improve connectivity of and help

reduce traffic within the city

caused due to people travelling

to Bangalore / Mumbai.

The project has got a central

budgetary allocation of Rs

2,468 crore. The land

acquisition process has

started for the project.

PMR Outer Ring Road

The newly proposed 110 m wide 173.8

km long outer ring road included in the

PMRDA Development Plan 2041 shall

be developed by MSRDC. Both IRR &

ORR shall follow a common stretch of

41 km.

A large number of vehicles from

Konkan, Marathwada, North

Maharashtra and other cities of

western Maharashtra that enter

the city will take this new route to

bypass the urban traffic.

Joint measurement survey for

the ring road has

commenced and is targeted

to end by April, 2021. State

has earmarked a budgetary

allocation of Rs 26,000 for

the project.

6.2.1. Pune Commercial Real Estate Overview

Pune’s Commercial spaces market is divided in 5 micro-markets namely, Central Business District (CBD),

Secondary Business District (SBD)-SBD East, SBD West, Peripheral Business District (PBD)-PBD East and

PBD West. Each of the commercial micro-market have distinctive characteristics and occupier profile.

Figure 20


| C&W | 33

Central Business District (CBD): CBD is a premium commercial district and commands the highest rentals

and capital value rates in the Pune City, owing to its established and organized nature of development. The

major commercial areas in CBD include – Senapati Bapat Road, Dhole Patil Road, JM Road, Shivaji Nagar and

Boat Club road. The CBD houses some large corporate houses, Government institutions and PSU’s. The market

has witnessed sustained interest from occupiers over the years due to factors like - Central location, Proximity

to Pune Railway Station and Pune Airport, presence of Grade A development, presence of well-developed

social and physical infrastructure, established residential pockets. The micro-market has limited absorption due

to higher rentals as well as relatively limited supply in preferred price band. Occupier profile comprises of IT-

BPM, Engineering and Consulting Companies. Average quoted rent is INR 125 per sq.ft./month.

SBD East: SBD East including areas such as Kharadi, Hadapsar have developed extensively over the last few

years and had seen high absorption owing to better quality infrastructure and supply as compared to the West.

Average quoted rent is INR 91 per sq.ft./month.

SBD West: SBD West including areas such as Baner and Aundh witnessed significant expansion and

development in the early years’ of 2000 due to its proximity to Hinjewadi as well as the Mumbai Pune

Expressway. However, delays in infrastructure development coupled with wider distance from key transportation

nodes (Airport & Railway Station) had slowed the demand for the micro market but it has picked up again due

to improved infrastructure, development of A Grade office spaces, close proximity to residential localities, etc.

in the past few years. Average quoted rent is INR 90 per sq.ft./month.

PBD West: PBD West comprises of areas like Hinjewadi, Wakad, Pimpri, Bhosari, Chinchwad, Hinjewadi in the

peripheral West was the primary destination promoted by the MIDC for IT-BPM players in the city, and witnessed

significant growth and presence of key IT players starting from mid-1990’s. The infrastructure has not kept pace

with the rapid development and hence become a concern for prospective occupiers. Average quoted rent is INR

54 per sq.ft./month.

PBD East: Comprises of areas like Phursungi, Wagholi, Charoli, Solapur Road, Saswad Road, Katraj. PBD

east has seen limited space take up due to lack of supply options and existing supply has seen limited demand

due to infrastructure challenges as well as distance from city center. Average quoted rent is INR 64 per

sq.ft./month.

The total Grade A office stock in Pune at the end of H121 stands at 55.03 Mn sq.ft. The total leasing in CY19

was ~4.96 Mn sq.ft but it picked up in CY20 (5.02 Mn sq.ft) due to improved demand from BFSI, Engineering,

Manufacturing and captives (back offices of BFSI, Engineering, etc), and then again declined to 1.89 Mn.sq.ft

due to lock-down driven by the second wave of COVID in Q121. Co-working operators contributed to 1.22 Mn

sq.ft to annual leasing in CY20 which was ~28% greater than CY18.


| C&W | 34

Figure 21

Pune also being a manufacturing hub, especially for the automotive sector, witnesses consistent demand from

the engineering and manufacturing sector. Other sectors such as Healthcare & Pharma, Logistics, Telecom,

Media have further contributed to office space demand in the past few years.

Figure 22

6.2.2. Pune Retail Market Snippet

Over the last decade, Pune has seen tremendous growth in the retail infrastructure. Pune retail market is

categorized by mall presence as well as high streets. Surge in supply of many new malls like Dorajbees at

NIBM, Westend at Aundh, Pavilion at Senapati Bapat Road in recent years has made the retail segment more

organized and well spread out across the city. Owing to rapid and concentrated development of malls especially

in the north-east quadrant, some of the malls were not able sustain competition and were therefore shut or

converted into office spaces such as Jewel Square, InOrbit, etc. The High-street locations have also evolved

across the city over the years. However, Camp (MG Road, East Street) as well as Laxmi Road continue to

remain as the most prominent High-street locations in the city. Refer Annexure 4 for Retail Market Spread.

18 20 24 27 29 33 36 39 41 44 52 55 55

35

55

54

44

44

24 4

0

10

20

30

40

50

60

70

CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY 19 CY 20 H121

Occupied Stock & Vacancy Occupied Stock (Mn.Sq.ft.)

0 5 4 2 3 2 4 2 2 3 4 3 7 81 3 3 2 3 3 5 3 2 3 5 1 7 7

13%

20.3%18.7%

14.6% 14.2%

10.9%10.6%9.9%

9.0%

8.0%

3.6%

7.2%

5%6%

0%

5%

10%

15%

20%

25%

0

1

2

3

4

5

6

7

8

9

CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 (F)CY22 (F)

Supply and Net Absorption Dynamics in Pune (Mn. sq.ft.)

Supply (Mn. Sq.ft.) Absorption (Mn. Sq.ft.) Vacancy Rate (%)


| C&W | 35

6.2.3. Pune Residential Overview

The presence of the IT sector has been the key factor that transformed real estate in Pune. While, traditionally

the residential real estate markets were largely concentrated within the central parts of the city, the presence of

large IT parks has contributed in rapid development of the peripheral locations such as Wakad, Hadapsar,

Kharadi, Baner, Balewadi, Punawale, etc. The emergence of satellite manufacturing hubs such as Chakan,

Ranjangaon, Talegaon, Rajgurunagar, etc. is further contributing in expanding the city boundaries.

While the micro-markets in East such as Kalyani Nagar, Viman Nagar, Magarpatta city, etc. have evolved into

prominent hubs for High-End and Luxury housing, Wagholi, Kharadi, Phursungi, etc. serve as the Affordable to

mid-income housing. Similarly, Aundh, Baner, Pashan are the High-End and Luxury housing locations of the

West and Balewadi, Punawale, Tathawade are Marunji, Ravet, etc. are Mid-income and affordable hubs.

Figure 23

*The units reflected in the above graph are the break-up of the units sold/unsold from the total units launched in respective years.

Pune has witnessed a supply of ~189,9568 units between CY13 and H121 with CY19 accounting for the highest

share (~16%) in new unit launches during the period. Of the total units launched between CY13 and CY20, 48%

units are currently unsold. The CY18 recorded a sharp rise in new units launched, 79% Y-o-Y increase and has

continued to grow further in CY19 as well. However, CY20 has been an unprecedented year and has witnessed

the impact on supply as well as sales due to the outbreak of COVID-19. But, H121 has witnessed higher number

of launches as launched in the entire CY20 indicating the market is gradually reviving.

Figure 24

8 The analysis excluded SRA Projects, Redevelopment Projects and Standalone Projects.

5,998 6,941 8,715 8,0255,877

15,74319,179

11,062 9,512

11,784

14,855

18,635

12,202

10,569

13,69711,872

1,583 3,707


Y-o-Y Supply-Absorption Trend in Pune Unsold Units

Sold Units

4,8

63

5,6

24

3,7

33

2,2

26

4,4

02

11

,49

8

4,7

79

8,7

61

8,8

99

9,8

41

6,8

55

5,4

56

2,5

48

1,8

48

3,1

18

5,1

31 8

,40

3

4,8

16

Q1CY17

Q2CY17

Q3CY17

Q4CY17

Q1CY18

Q2CY18

Q3CY18

Q4CY18

Q1CY19

Q2CY19

Q3CY19

Q4CY19

Q1CY20

Q2CY20

Q3CY20

Q4CY20

Q1CY21

Q2CY21

Q-o-Q new unit launches Trend in Pune


| C&W | 36

About 92% of the units launched between CY13 and H121 were in the Affordable and Mid-income markets.

Pune developers continue to concentrate on launches in the affordable & mid income segment due to the higher

demand from end users in this segment resulting in better sales in this segment. The High-end and Luxury

markets continue to record slight increase in number of new launches in H121 indicating market slowly getting

back to normal. The West quadrant of Pune, including Baner, Balewadi, Wakad, etc., is the largest mid-income

market in Pune and the least unsold inventory across Pune indicating favourable micro market for investment.

The West also accounts for about 29% share in units sold and 26% of available units in the city.

Figure 25

Being the largest market in terms of supply of units, the West also accounts for the second highest monthly

sales velocity of residential units, i.e. 1,063 units per month. The location in South have recorded lowest new

supply and also witnesses the slowest sales velocity of 231 units per month. The West submarket also has the

lowest proportion on unsold units ~27%, with highest supply of units and ranking on first position in terms of the

inventory overhang. While residential development in Pune has been expanding with locations in proximity to

commercial hubs are witnessing concentrated development. The public transport focused infrastructure

developments such as the Pune Metro and the BRTS routes coupled with improved road connectivity is

expected to further contribute in development of peripheral locations such as Balewadi, Sus, Lavale, Bhugaon,

etc.

Figure 26

Avg.

Monthly

Sales

Velocity

1,124 1,391 231

1,063

95% 92%99% 97% 100%

90% 94% 96% 92%

5%8% 1% 3%

0%10% 6% 4% 8%


Segment-wise Y-o-Y Supply Affordable & Mid-End

High-end & Luxury

16,437 21,697

5,433

18,261

25,113

31,751

11,312

23,751

East North South West

Submarket-wise Supply and Absorption Sold UnitsUnsold Units

Lowest ratio of unsold inventory


| C&W | 37

The presence of Rajiv Gandhi Infotech Park in the West coupled with excellent connectivity with Mumbai via

the Mumbai-Pune Expressway has let to rapid development of the West quadrant. Moreover, the proposed

Bengaluru-Mumbai Economic Corridor (BMEC) (NH4) passes across this submarket and the Aundh-Baner-

Balewadi region has been picked as the test phase for Smart-City Development. These factors are expected to

further drive real estate growth in this submarket, making is one of the most prominent locations Pune.

Figure 27

The average capital values in Pune have increased at 3-5% GAGR across most locations in Pune, since CY14.

The Western micro-markets have the highest average capital values i.e. INR 11,462 per sq.ft. on carpet area

followed by Eastern markets at INR 10,781 per s.ft. Owing to the presence of IT parks, these markets have

witnessed high demand especially that arising from the workforce employed in these IT parks. The average

capital values for these submarkets has therefore been significantly higher than other locations. The micro-

markets in the North and South are largely residential hubs with limited commercial activity. The property prices

have comparatively been lower. The average capital values for South is INR 8,698 per sq.ft. and for North is

INR 8,125 per sq.ft. on carpet area.

Figure 28

Currently, there are over 128,518 residential units under-construction, expected completion by 2026, of which

about 55,859 units are scheduled for completion by 2022. With monthly sales velocity of about 3,809 units,

Pune has an inventory overhang of 24 months. While the West submarket accounts for 27% share in unsold

units, it also has the shortest inventory overhang i.e. 22 months, making West the best market from demand

aspect along with the highest supply dynamics.

2,5781,724 1,756 1,697

3,550 3,054 3252,520

1,1931,376 1,577 1,720

4,251

7,012

3,4321,136


Y-o-Y Supply-Absorption Trend in West Submarket Sold Units

Unsold Units

6,611

10,781

8,188

11,462

4,839

8,125

5,491

8,698

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000


Rate

IN

R/S

q.f

t. (

Carp

et

Are

a)

Capital Value Trends (Pune)

East West North South


| C&W | 38

Table 8

Region Wise Sales velocity and Overhang

Performance Indicators East North South West

Monthly Sales Volume (Units) 1,124 1,391 231 1,063

Overhang (months) 22 23 49 22

Table 9

Block Price Range - Supply-Absorption

Block Price Range Units Sold Units Available Monthly Sales Velocity (Units)

Less than INR 40

Lakhs 19,032 25,333 1,184

INR 40L to 1cr 37,896 61,245 2,445

Greater than INR 1cr 4,901 5,348 181

The proportion of available units in the INR 40 Lakhs to INR 1 crore block price range is the highest and has

the highest monthly sales velocity. Therefore, the inventory overhang in the INR 40 Lakhs to INR 1 crore range

is second lowest i.e. 25 months; compared to 30 months in the greater than INR 1 crore range, making the INR

40 Lakhs to INR 1 crore range the most attractive in terms of demand in Pune. Inventory overhang for less than

40 lakhs block price is about 21 months.

Figure 29

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

CY21 CY22 CY23 CY24 CY25 CY26 CY27-CY31

Upcoming supply based on Completion Year

East North South West


| C&W | 39

ANNEXURE 1: MUMBAI METROPOLITAN REGION INFRASTRUCTURE MAP

MMR - Key Existing and Upcoming Infrastructure Projects


| C&W | 40

ANNEXURE 2: MUMBAI RETAIL AND COMMERCIAL MARKET SPREAD


| C&W | 41

ANNEXURE 3: MMR RESIDENTIAL CAPITAL VALUE RANGES (INR PER SQ.FT. ON CARPET AREA)


| C&W | 42

ANNEXURE 4: PUNE INFRASTRUCTURE MAP (KEY EXISTING AND UPCOMING DEVELOPMENTS)


| C&W | 43

ANNEXURE 5: PUNE RETAIL AND COMMERCIAL MARKET SPREAD


| C&W | 44

ANNEXURE 6: PUNE RESIDENTIAL CAPITAL VALUE RANGES (INR PER SQ.FT. ON CARPET AREA)


| C&W | 45

ANNEXURE 7: DETAILS OF SLUM REHABILITATION SCHEME 33 (10)

Slum Rehabilitation Scheme 33 (10)

Factor DCR 1991 DCR 2034

Floor Space Index (FSI)

Gross Plot Area X FSI

4.00 with discretionary

power CEO, SRA

+ Fungible (35%)

• Gross Plot Area X FSI 3.00 or Rehab

component + Incentive for Free sale

whichever is higher.

Tenement Density 500 tenements / hectare 500 tenements/hectare

Additional Incentive FSI for

Free Sale Component over

rehab component

N.A.

• For plot area 5 acres – 10 acres = 5%



• For plot above 40 acres – 20%

Co-relation between CC of

Rehab FSI & Free sale FSI Not Specified

Initially CC for 10% of Total Permissible FSI for

both Rehab & Sale will be released. Thereafter,

proportionately or as may be decided by CEO,

SRA.

Non - residential tenements

for competition of tenement

density

CA up to 20.90 sq.m. CA up to 25 sq.m.

Aaganwadi, health centre /

outpost, community hall /

gymnasium / fitness centre,

skill development centre,

women entrepreneurship

centre, yuva kendra / library

society office, and religious

structures to be added for

rehab component

• 1 Balwadi for every

100 tenements

• 1 Welfare centres for

every 100 tenements

• 1 Society for Rehab

Component

• Religious structures, if

any Common

passages

• Aaganwadi, Health Centre / Outpost,

Community Hall /Gymnasium / Fitness

Centre, Skill Development Centre, Women

Entrepreneurship Centre, Yuva Kendra /

Library: 25 Sq.m. For Every Multiple Of

250 Tenements.

• One Society Office for every multiple 100

Tenements area of community hall = 2%

Of Rehab BUA or 200 Sq.m. whichever is

less

Source: Draft Development Plan – 2034, Draft development Control & Promotion Regulations 2034


| C&W | 46

ANNEXURE 8: DETAILS OF PRIVATE SOCIETY REDEVELOPMENT 30 & 32

Private Society Redevelopment 30 & 32 DCR 1991 DCR 20349

Floor Space

Index (FSI) -

Island City

Base FSI or Zonal FSI = 1.33 (Net Plot Area)

Premium FSI = NA

TDR = NA

Fungible (35% of 1.33) = 0.47

Total FSI with Fungible = 1.80

Base FSI or Zonal FSI = 1.33 (Gross Plot

Area)

Premium FSI = 0.34 (Gross Plot Area)

TDR = 0.33 (Gross Plot Area)

Fungible (35% of 2.00) = 0.70

Total FSI with Fungible = 2.70

Floor Space

Index (FSI) -

Suburbs

Base FSI or Zonal FSI = 0.85 (Net Plot Area)

Premium FSI = 0.50 (Balance Plot Area)

TDR = 0.50 (Balance Plot Area)

Fungible FSI (35% of 2.00) = 0.50

Total FSI = 2.50

** No additional FSI of Road setback instead

gets adjusted in the form of TDR

Base FSI or Zonal FSI = 1.00 (Gross Plot

Area)

Premium FSI = 0.50 (Gross Plot Area)

TDR = 0.50 (Gross Plot Area)

Fungible FSI (35% of 2.00) = 0.70

Total FSI = 2.70

** Road setback area will not get adjusted

in TDR, instead 100% FSI of Road

setback if given

Recreational

Ground (RG)

Deduction in

FSI

15% & physical provision as per plot area No Applicable, only physical provision is

required

AOS

provision No

Plot area less than 4,000 sq.m. = Nil

Plot area between 4,000 sq.m. to 10,000

sq.m. = 5% Plot area more than 10,000

sq.m. = 10%

Inclusive

Housing

Inclusive housing is not applicable if all existing individual tenements have Carpet Area of

less 80 sq.m. in the scheme.

Development

Surcharge NA

Applicable on Premium FSI + TDR & on

fungible of Premium FSI & TDR (4% X

Land RR X FSI)

Source: Draft Development Plan – 2034, Draft development Control & Promotion Regulations 2034

9 FSI and other Components are as per MCGM DCR 2034 and subject to change as per future modifications by Government.


| C&W | 47

ANNEXURE 9: DEFINITIONS

Mumbai Market Classification

Submarket Name Locations Included

South Colaba, Fort, Churchgate, Charni Road, Grant Road, Marine Lines, Masjid,

Napeansea Road, Sandhurst Road

Central Mumbai Byculla, Dadar, Lower Parel, Mahalaxmi, Mahim, Matunga, Mumbai Central, Parel,

Sewri, Sion, Tardeo, Wadala

Western Prime Bandra, Khar

Western Suburbs Vile Parle, Santacruz, Andheri, Jogeshwari, Goregaon, Malad, Kandivali, Borivali,

Bhayander, Dahisar, Mira Road

Western – Extended Naigaon, Nalasopara, Vasai, Virar, Palghar, Boisar

Eastern Suburbs Kurla, Chandivali, Chembur, Powai, Ghatkopar, Kanjurmarg, Bhandup, Mulund,

Nahur, Tilak Nagar, Vidyavihar, Vikhroli

Thane Thane East, Thane West, Ghodbundar Road, Pohkran Road, Kolshet, Majiwada

Thane – Extended Dombivali, Kalyan, Bhiwandi, Diva, Karjat, Neral, Ambarnath, Ambivli,

Navi Mumbai Ghansoli, Kalamboli, Kharghar, Ghansoli, Kharghar, Khopoli, Panvel, Seawoods,

Taloja, Ulwe

Pune Market Classification

Submarket Name Locations included

East Hadapsar, Kalyani Nagar, Keshav Nagar, Kharadi, Koregaon Park, Magarpatta,

Manjri, Mundhwa, Phursungi, Shiraswadi, Sopan Baug, Viman Nagar, Wadgaon

Sheri, Wagholi

West Aundh, Balewadi, Baner, Baner-Pashan, Bavdhan, Bhugaon, Bhukum, Deccan

Gymkhana, Erandwane, Hinjewadi, Karve Road, Kondhawe Dhawade, Kothrud,

Mahalunge, Marunji, Mulshi, Mumbai - Pune Highway, Pashan, Pimple Saudagar,

Pirangut, Punawale, Sadashiv Peth, Sus, Tathawade, Wakad

North Alandi, Chakan, Charoli, Chikhali, Chinchwad, Dapodi, Dehu, Dehugoan, Dhanori,

Gahunje, Lohegaon, Moshi, Pimpri, Rahatani, Ravet, Somatane, Talegaon,

Thergaon

South Ambegaon, Ambegaon Budrak, Dhayari, Donje, Handewadi, Jhambul, Katraj,

Kirkatwadi, Kondhwa, Mohammadwadi, NIBM Road, Pisoli, Pradhikaran, Salunkhe

Vihar, Sinhagad Road, Undri, Yewalewadi

Definitions

Housing Unit Classification (Cushman & Wakefield Research)

• The values for affordable housing are for units up to 30 square meters (in carpet area) within municipal

limits of four metro cities (Mumbai, Delhi, Chennai and Kolkata) and 60 square meters (in carpet area) for

all other cities;

• For mid segment are for units in the range of INR 5-10 million except Delhi-NCR and Mumbai, where the

range in mid segment housing is typically between INR 5-17 million (20 million for Mumbai).

• High-end segment values are for units typically priced above INR 10 million except for Delhi and Mumbai

(where it is more than 17 million in Delhi and 20 million for Mumbai)

Note: The residential sector data and analysis reported in this document excludes redevelopment projects,

standalone projects with less than 100 units (exception being centrally located micro-markets) and covers only

the major micro-markets within each city. The Units data for Sold and Unsold units is basis RERA website as

reported in June 2021.


| C&W | 48

ANNEXURE 10: KEY DEVELOPER PROFILES

Parameters Godrej

Properties

Oberoi

Realty

Indiabulls

Real Estate

Sobha

Developers

Kolte-Patil

Developers

Macrotech

Developers

(Lodha

Group)

Prestige

Estate

Puranik

Builders Ltd

Total No. of

Projects 85 27 17 53 20 296 125 75

Total No. of

Completed

Projects

27 22 2 19 - 163 98 35

Total No. of

U/C Projects 59 5 15 34 - 133 27 40

Total Income

(FY 2017-18) in

Crores

2,390.67 1,292.01 4,731.84 2,836.5 711.32 7997.03 3,103.80 492.48

Total Income

(FY 2018-19) in

Crores

3,221.98 2,661.34 5,222.93 3,515.6 516.36 9534.18 2,579.30 721.23

Total Income

(FY 2019-20) in

Crores

2,914.59 2,285.98 3,440.63 3,825.65 745.3 8449.29 3,566.70 730.24

Total Income

(FY 2020-21) in

Crores

1,241.42 2,090.58 NA 2191.1 527.34 4,445.98 4,228.6 513.56

Profit After

Tax (Parent)

(FY 2017-18) in

Crores

234.96 458.80 2,359.56 216.8 104.91 522.37 232.00 44.02

Profit After

Tax (Parent)

(FY 2018-19) in

Crores

253.15 816.93 504.31 297.1 79.39 1211.12 289.20 71.27

Profit After

Tax (Parent)

(FY 2019-20) in

Crores

270.63 689.33 121.10 281.6 64.20 433.01 262.40 51.23

Profit After

Tax (Parent)

(FY 2020-21) in

Crores

(42.81) 741.54 NA 65.5 (769) (185.72) 212.8 36.30

Market Spread

Mumbai

Thane

Pune

Gurgaon

Noida

Chennai

Bengaluru

Ahmedabad

Kolkata

Nagpur

Mumbai-

Andheri

Borivali

Goregaon

Juhu

Kandivali

Khar

Mulund

Santacruz

Worli

Mumbai

Gurgaon

Sonipat

Vizag

Hyderabad

Madurai

Ahmedabad

Pune

Bengaluru

Gurgaon

Chennai

Coimbatore

Thrissur

Calicut

Kochi

Mysore

Pune

Bengaluru

Mumbai

Pune

Mumbai

Thane

Kalyan-

Dombivali

Navi Mumbai

Hyderabad

Bengaluru

Chennai

Hyderabad

Cochin

Mumbai

Noida

Mysuru

Mengaluru

Pune

Thane

Pune

Neral

Lonavala

Prominent

Projects

Godrej The

Trees

Godrej

Central

Godrej

Platinum

Godrej

Greens

Oberoi 360

West

Oberoi

Esquire

Oberoi

Skycity

Oberoi

Eternia

Indiabulls

Blu

Indiabulls

Sky

One

Indiabulls

Indiabulls

Greens

Sobha

Garnet

Sobha Orion

Sobha 25

Richmond

Sobha

Forest Edge

Western

Avenue

24K Opula

24K Atria

24K Sereno

Lodha

Centre Park

Lodha

Palava

Lodha Upper

Thane

Lodha

Amara

The World

Towers

Prestige

Parkview

Prestige

Misty Waters

Hebbal

Prestige

Royale

Gardens

Prestige

North Point

Prestige

Woodside

Rumah Bali

Tokyo Bay

Puranik City

Reserva

Grand

Central

Abitante

Aldea

Puranik City

Neral

Sayama

HomeTown

Share Price (INR/Share) as on 1st working day of the respective month


| C&W | 49

April-21 1,380 565 82 449.5 234.6 439 303.35 -

May-21 1,360 545.25 77.1 485.95 213.15 585 271.7 -

June-21 1,375 615 102.9 498 227.8 635.9 271.65 -

July-21 1,410 630 119 472.25 219 685.05 286 -

Aug.-21 1,605 673.15 153.65 605 235.3 853 356.15 -

Sept.-21 1,500 715 137.85 630 244.7 969.9 344.05 -

Source: Revenue and PBT from respective Annual reports, stock prices from BSE.com, Project Data from

public domains


| C&W | 50

ANNEXURE 11: DEVELOPERS IN MUMBAI MMR & PUNE PMR

Top 50 Developers in Mumbai MMR (out of over 1280+ developers & individual land owners) based on

number of units marketed as shown in RERA website as on June 2021 for the projects under coverage.10

1 Lodha Group 26 Regency Group

2 Runwal Group 27 Paradise Group

3 Neptune Group 28 Hubtown

4 Rustomjee group 29 JP Infra

5 Godrej Properties 30 Jaycee Homes

6 Dosti Realty 31 Marathon Group

7 Hiranandani Estate 32 Arihant Group

8 L&T 33 Agarwal Group

9 Shapoorji Pallonji 34 MAN Builders

10 Oberoi Realty 35 Conceptual Advisory LLP

11 Vijay Khetan Group 36 Rashmi Group

12 Tata Housing 37 Ekta World

13 Piramal Realty 38 Mohan Group

14 Puranik Builders 39 Karnani Builders

15 Acme Group 40 Dudhwala Group

16 Kalpataru Group 41 Dheeraj Realty

17 Sheth Developers 42 Poddar Housing

18 Nirmal Lifestyle 43 Shelter Builders & Developers

19 Wadhwa Developers 44 Mittal Builders

20 HDIL Group 45 Hemant Parikh & Associates

21 Radius Group 46 Amar Group

22 Indiabulls Real Estate 47 Veena Developers

23 Cosmos Group 48 DB Realty Limited

24 Kanakia Spaces 49 Karrm Homes

25 Xrbia Developers 50 MAAD Realtors and Infra

10 The table represents list of top developers and not the order of ranking


| C&W | 51

Top 50 Developers in PMR (out of over 575+ developers & individual land owners) based on number of units

marketed as shown in RERA website as on June 2021 for the projects under coverage.11

1 Kolte-Patil Developers 26 Gera Developments

2 Xrbia 27 Pearlite Real Properties

3 Paranjape Schemes 28 Lodha Group

4 Rohan Builders 29 Paranjape Schemes.

5 Mantra Properties 30 Sukhwani Associates

6 Goel Ganga 31 Mahalunge Township Developers Llp

7 City Corporation Limited 32 DS Kulkarni

8 Vilas Javdekar 33 Pristine Developers

9 Kumar Construction 34 Pune Projects Llp

10 Godrej Skyline Developers 35 Sharad Shree Enterprises

11 Nanded City 36 Siddhashila Developers

12 Puranik Builders 37 Mahindra Lifespace

13 Majestique 38 Panchshil Infrastructure

14 Oxford Realty 39 Gk Developers

15 Pegasus Properties 40 Duville Estates Private Limited

16 Enerrgia Skyi Realty 41 Amit Enterprises Housing Limited

17 Dream World Landmarks 42 Kalpataru

18 Sai Essen Developers 43 Bramhacorp Limited

19 Pride Realty 44 Tulip Developers

20 Rama Synergy Spaces 45 Yashada Realty

21 Nyati Builders 46 Jaikul Associates

22 Ashdan Developers 47 Manjari Housing

23 Peninsula Land Limited 48 Snowflower Properties

24 Shapoorji Pallonji 49 Guardian Promoters

25 New World Realty 50 Pharande Promoters

Top 15 Developers in Thane (out of over 102 developers) based on number of units sold as shown in RERA

website as on June 2021 for the projects under coverage.12

1 Lodha Group 9 Ashar Group

2 Rustomjee Group 10 Raymond Realty

3 Dosti Realty 11 Acme Group

4 Kalpataru Group 12 Vijay Khetan Group

5 Puranik Builders 13 Cosmos Group

6 Runwal Group 14 Siddhi Group

7 Hiranandani Estate 15 T Bhimjyani Realty

8 Piramal Realty

Puranik Builders is among the prominent residential real estate developers in Mumbai Metropolitan Region

(MMR) and Pune Metropolitan Region (“PMR”) based on number of units currently being marketed in these

regions. Puranik Builders is also among the leading residential real estate developers in the growing Thane

region of MMR based on the projects currently being marketed and corresponding units sold.

11 The table represents list of top developers and not the order of ranking 12 The table represents list of top developers and not the order of ranking


| C&W | 52

ANNEXURE 12: FSI AS PER UDCPR 2020

Permissible FSI for Residential/ Residential with Mixed Use in congested area as per UDCPR 2020

Road

width in

meters

Basic

FSI

For all Municipal Corporations For remaining authorities / areas

FSI on

payment

of

premium

Max.

permissible

TDR loading

Max.

Building

potential

on plot

including

in situ FSI

FSI on

payment

of

premium

Max.

permissible

TDR

loading

Max.

Building

potential

on plot

including

in situ FSI

Below 9m 1.50 -- -- 1.50 -- -- 1.50

9m and

above but

below 18m

2.00 0.30 0.30 2.60 0.30 0.10 2.40

18m and

above but

below 30m

2.00 0.30 0.50 2.80 0.30 0.20 2.50

30m and

above 2.00 0.30 0.70 3.00 0.30 0.20 2.50

Source: Sanctioned UDCPR 2020

Permissible FSI for Residential/ Residential with Mixed Use in non-congested area as per UDCPR 2020

Road

width in

meters

Basic

FSI

For all Municipal Corporations For remaining authorities / areas

FSI on

payment

of

premium

Max.

permissible

TDR loading

Max.

Building

potential

on plot

including

in situ FSI

FSI on

payment

of

premium

Max.

permissible

TDR

loading

Max.

Building

potential

on plot

including

in situ FSI

Below 9m 1.10 -- -- 1.10 -- -- 1.10

9m and

above but

below 12m

1.10 0.50 0.40 2.00 0.30 0.30 1.70

12m and

above but

below 15m

1.10 0.50 0.65 2.25 0.30 0.60 2.00

15m and

above but

below 24m

1.10 0.50 0.90 2.50 0.30 0.70 2.10

24m and

above but

below 30m

1.10 0.50 1.15 2.75 0.30 0.90 2.30

30m and

above 1.10 0.50 1.40 3.00 0.30 1.10 2.50

Source: Sanctioned UDCPR 2020


| C&W | 53

Permissible FSI as per Pune Municipal Corporation DCR 2017

Road width in

meter Basic FSI

Additional FSI on

payment of

premium

Maximum

permissible TDR

loading

Maximum building

potential on plot

Below 9m 1.50 -- -- 1.50

9m and upto 12m 2.00 -- -- 2.00

12m and upto

18m 2.00 0.25 -- 2.25

18m and upto

24m 2.00 0.25 0.25 2.50

24m and upto

30m 2.00 0.25 0.50 2.75

30m and above 2.00 0.25 0.75 3.00

Source: Sanctioned DCPR 2017 for Pune Municipal Corporation


| C&W | 54

CAVEATS & LIMITATIONS

• The ‘Industry Report’ referred to as the “Report”) will not be based on comprehensive market research of

the overall market for all possible situations. Cushman & Wakefield India (hereafter referred to as “C&WI”)

will cover specific markets and situations, which will be highlighted in the Report. C&WI will not be carrying

out comprehensive field research based analysis of the market and the industry given the limited nature of

the scope of the assignment. In this connection, C&WI will rely solely on the information supplied to C&WI

and update it by reworking the crucial assumptions underlying such information as well as incorporating

published or otherwise available information.

• In conducting this assignment, C&WI will carry out analysis and assessments of the level of interest

envisaged for the property(ies) under consideration and the demand-supply for the residential sector in

general. C&WI will also obtain other available information and documents that are additionally considered

relevant for carrying out the exercise. The opinions expressed in the Report will be subject to the limitations

expressed below.

• C&WI endeavors to develop forecasts on demand, supply and pricing on assumptions that would

be considered relevant and reasonable at that point of time. All of these forecasts will be in the

nature of likely or possible events/occurrences and the Report will not constitute a recommendation

to Puranik Builders Limited (hereafter referred to as the “Client”) or its affiliates and subsidiaries

or its customers or any other party to adopt a particular course of action. The use of the Report at

a later date may invalidate the assumptions and bases on which forecasts have been generated

and is not recommended as an input to a financial decision.

• Changes in socio-economic and political conditions could result in a substantially different situation

than those presented at the stated effective date. C&WI assumes no responsibility for changes in

such external conditions.

• In the absence of a detailed field survey of the market and industry (as and where applicable),

C&WI will rely upon secondary sources of information for a macro-level analysis. Hence, no direct

link is sought to be established between the macro-level understandings on the market with the

assumptions estimated for the analysis.

• The services provided will be limited to Industry Report and will not constitute an audit, a due

diligence, tax related services or an independent validation of the projections. Accordingly, C&WI

will not express any opinion on the financial information of the business of any party, including the

Client and its affiliates and subsidiaries. The Report will be prepared solely for the purpose stated,

and should not be used for any other purpose.

• While the information included in the Report will be believed to be accurate and reliable, no

representations or warranties, expressed or implied, as to the accuracy or completeness of such

information is being made. C&WI will not undertake any obligation to update, correct or

supplement any information contained in the Report.

• In the preparation of the Report, C&WI will rely on the following information:

• Information provided to us by the Client and its affiliates and subsidiaries and third parties;

• Recent data on the industry segments and market projections;

• Other relevant information provided to us by the Client and its affiliates and subsidiaries at

C&WI's request;

• Other relevant information available to C&WI; and

• Other publicly available information and reports.

• The Report will reflect matters as they currently exist. Changes may materially affect the information

contained in the Report.

• All assumptions made in the Industry Report will be based on information or opinions as current. In the

course of the analysis, C&WI would be relying on information or opinions, both written and verbal, as

current obtained from the Clients as well as from third parties provided with, including limited information on

the market, financial and operating data, which would be accepted as accurate in bona-fide belief. No

responsibility is assumed for technical information furnished by the third party organizations and this is

bona-fidely believed to be reliable.


| C&W | 55

• No investigation of the title of the assets will be been made and owners' claims to the assets will be assumed

to be valid. No consideration will be given to liens or encumbrances, which may be against the assets.

Therefore, no responsibility is assumed for matters of a legal nature.

• The Client including its agents, affiliates and employees, must not use, reproduce or divulge to any third

party any information it receives from C&WI for any purpose without prior consent from C&WI and should

take all reasonable precautions to protect such information from any sort of disclosure. The information or

data, whether oral or in written form (including any negotiations, discussion, information or data) forwarded

by C&WI to the Client may comprise confidential information and the Client undertakes to keep such

information strictly confidential at all times.

Documents

REAL ESTATE MARKET OVERVIEW - Puranik Builders