THE GERA PUNE RESIDENTIAL

REALTY REPORT

JULY ‘14 - JANUARY ‘15

Presents

The Gera Pune Residential Realty Report July 14-January 15

PRICES: The rate of price increase for 2014 has dropped substantially over 2013. Half yearly rate increases are now below inflation .The last 12 months have seen the slowest increase in rates of only 5.3%. This as compared to 14.1% and 14.8% over the two prior years.

Six Monthly Price Movements

SUPPLY: Over the past 6 months, the gross stock has reduced from 245,369 units to240,433 – a reduction of 2.1% (indicating that the projects were being launched slower than the rate of completion). During the same period, the unsold stock has increased from 66,350 units to 67,181 units – an increase of 1.2%. For the first time in 3 years, the total number of projects has reduced from 2761 in June 2014 to 2683 in December 2014.

Overall Supply Situation

The Gera Pune Residential Realty Report July 14-January 15

The unsold inventory in early stage projects has risen from 41.4% in December ’12 to 65.1% in December ’14. While the increase in the unsold stock for the early stage projects is 22.35%, the increase in the overall unsold stock % is 6.07%. Clearly consumers are being far more careful and purchasing projects which are past the early stage of progress.

Inventory Situation

The Gera Pune Residential Realty Report July 14-January 15

On an average, the top 10 developers as per the list have approx. 10% of the gross stock across the market (the top 10 developers are building/have built 10% of the total units under construction in Pune). Unsold stock numbers are consistently lower across all stages of work for this subset of developers, indicating that these developers are able to sell stock faster than the rest of the market. Table below shows the sold stock across variousstages of work for the entire market compared to the top 10 subset.

Stock Sellout Analysis

The Gera Pune Residential Realty Report July 14-January 15

We decided to assess the market in terms of supply and unsold stock based on the quoted rates – The table below shows the rates considered in December ’12, December ’13 and December ’14 for 5 categories of homes.

Supply and Unsold Stock Analysis

The Gera Pune Residential Realty Report July 14-January 15

In general, the unsold stock percentage increases as we moved towards the upper end of the pricing spectrum , which stands to reason (Premium plus and Luxury units have a longer inventory turnover period compared to lesser priced units).

Unsold Stock Percentage

The Gera Pune Residential Realty Report July 14-January 15

Value and volume analysisThe following chart tracks the Total Value (in Crores) and the total area (in square feet) of the Unsold Inventory over the last 2 years .

Value and Volume Analysis

The Gera Pune Residential Realty Report July 14-January 15

Highest inventoryThe top 10 locations account for more than half of the total unsold units in Pune.

Locations with Highest Inventory

The Gera Pune Residential Realty Report July 14-January 15

Top 20 Micromarkets

The Gera Pune Residential Realty Report July 14-January 15

The micro markets that have witnessed the maximum increase in prices over the last 24 months are listed below.

Micromarkets with Maximum Increase in Prices

The Gera Pune Residential Realty Report July 14-January 15

Micromarkets with Highest Price Gains

Micromarkets with Highest Price Gains in the last two years

The Gera Pune Residential Realty Report July 14-January 15

Bottom Ten Lowest Gainers (in the last 24 months)

Bottom Ten Lowest Gainers

The Gera Pune Residential Realty Report July 14-January 15

We did an analysis of price changes for the luxury locations of Model Colony, Aundh, Koregaon Park & Boat Club Road. The following are the average prices in these markets over the last 24 months.

Price Changes for Luxury Locations

The Gera Pune Residential Realty Report July 14-January 15

The reduction in the base interest rates of 25

basis points while positive will not do much

to move the overall market. While the stock

market has already responded to the new

government and the changes that are taking

place, the real estate market has been far

more circumspect.

The genuine home buyers have seen difficult

times with high interest rates as well as high

inflation and low salary increases and this

effect has led to home buyers taking a far

more cautious approach this time around.

Summary

The Gera Pune Residential Realty Report July 14-January 15