M A R K E T B E AT NCR Residential Q3 2020

Gradual pick-up in new project launches after a slow second quarter The residential sector in Delhi NCR recorded 260 new unit launches in Gurugram, Sector 74 in Q3, an improvement over the previous quarter which witnessed no new launches. Moreover, 1,308 units were launched across two projects in sectors 95 and 36 (Sohna) in Gurugram under the Haryana NEW UNIT LAUNCHES IN Affordable Housing Scheme and Deen Dayal Jan Awas Yojana. Offloading the existing high unsold inventory and completion of ongoing projects continue 260 Q3 2020 to remain the key priorities of developers in the city. Higher demand for completed projects or those which are nearing completion in a market that has seen several execution delays is driving developers to focus on projects which have already been launched while restricting further new launches. However, the NEW UNIT LAUNCHES IN Q3 2020 – affordable segment is seeing steady action with the launch of more than 3,600 units over the past three quarters, a result of the government’s continued 1,308 AFFORDABLE HOUSING SCHEME policy focus on this segment. Government incentives include the benefit of a 100% deduction in profits available to developers of affordable housing projects extended to projects approved till March 2021. A similar extension has also been provided to first time buyers of affordable housing projects for a cumulative interest deduction of INR 3.5 lakhs on housing loans sanctioned upto March 2021. Such tax benefits on both demand and supply sides will NEW UNIT LAUNCHES – YTD 2020 3,621 – AFFORDABLE HOUSING SCHEME augur well for the affordable housing segment over the next few years. The upcoming quarters are likely to see more launches of both affordable floors as well as plots, especially in Gurugram, as the state government is creating conducive conditions for developers to increase their focus in this area.

Government aiding developers to resolve the execution challenges in under-construction projects Even though construction work has gradually resumed after the lockdown, labour shortages, especially with respect to the migrant workers are expected to have a bearing on the already stretched project completion timelines. In order to aid the developers while keeping in mind the interest of buyers, Noida MARKET INDICATORS OVERALL Q3 2020 Authority has given a 6-month extension to developers who were expecting project completions by June 2021 under its ‘zero-period policy’. This policy which exempts developers from paying penal interest on outstanding land dues for the years when the projects are stuck has extended the timeline for Y-O-Y 12-Months completing ongoing projects till December 2021 in the wake of the pandemic. To protect homebuyers, Haryana Real Estate Regulatory Authority has Change Forecast declared those financial institutions acquiring projects from developers through an auction process, in cases of default to be treated as project promoters. Any such project auction, which puts the homebuyer’s money at risk, cannot be held without the regulator’s approval. New Launches Quoted prices remain largely unchanged; market offers plethora of incentives for serious buyers While developers did not make any significant change in the headline prices during the quarter, the market continues to record several instances of Units Sold incentives and schemes to bring down ticket prices for serious buyers. While a 5 – 8% price discount is being provided in several cases across all price categories and residential corridors, various flexible payment plans also continue to be offered. Developers are even offering property swap options for buyers to exit stalled projects by giving an option to switch to an alternate project if they are willing to pay a stipulated amount of the new project prices. Average Capital Sales activity saw some improvement in the quarter with more serious enquiries and conversions in the market. Attractive home loan rates are also Values (INR/sf) sweetening the deal for serious buyers to close purchases. We do not expect much further correction on property prices, though the current scenario is likely to prevail in the short to medium-term as sales activity only improves gradually. The rental market saw a 5-7% softening in the previous quarter and the same scenario prevailed across all major submarkets for both mid and high-end segments. Tenants negotiated hard with a drop in corporate budgets for expatriate clients of high-end rented properties in a major trend observed in Q3.

SIGNIFICANT PROJECTS LAUNCHED IN Q3 2020

BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE (INR/SF)

M3M Skywalk Sector 74, Gurugram M3M Group 260 7,400

Mahira Homes 95 Sector 95, Gurugram Mahira Group 876 4,000

Signature Global Park 4 & 5 (Floors) Sector 36, Sohna, Gurugram Signature Global 432 4,750 M A R K E T B E AT DELHI NCR Residential Q3 2020

RENTAL VALUES AS OF Q3 2020 CAPITAL VALUES* AS OF Q3 2020 AVERAGE QUOTED QoQ CHANGE YoY CHANGE SHORT TERM AVERAGE QUOTED QoQ CHANGE YoY CHANGE SHORT TERM SUBMARKET SUBMARKET RENT (INR/MONTH) (%) (%) OUTLOOK VALUE (INR psf) (%) (%) OUTLOOK

High-end segment High-end segment South-west 213,900 – 437,100 0% (7%) South-west 33,000 – 53,000 (2%) (2%) South-east 116,250 – 232,500 0% (7%) South-east 24,000 – 35,000 (2%) (2%) South-central 171,000 – 294,500 0% (5%) South-central 28,000 – 45,000 (2%) (2%) Central 270,750 – 522,500 0% (5%) Central 63,000 – 98,000 (3%) (3%) Gurugram High-end 60,450 – 195,300 0% (7%) Gurugram High-end 10,000 – 16,200 (2%) (2%) Noida 47,500 – 95,000 0% (5%) Noida 7,000 – 9,000 (2%) (2%) Mid segment Mid segment South-east 93,000 – 186,000 0% (7%) South-east 20,000 – 27,000 (3%) (3%) South-central 114,000 – 218,500 0% (5%) South-central 24,000 – 35,000 (3%) (3%) Gurugram 46,500 – 93,000 0% (7%) Gurugram 4,500 – 9,000 0% 0% Noida 28,500 – 47,500 0% (5%) Noida 4,000 – 6,500 (2%) (2%) SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q3 2020 BUILDING LOCATION DEVELOPER UNITS LAUNCHED COMPLETION Rohan Sharma Mahindra Luminare Phase 2 Sector 59, Gurugram Mahindra Lifespaces 120 Q1 2021 Director, Research Services +91 124 4695555 /[email protected] Ajnara Grand Heritage Sector 74, Noida Ajnara Group 243 Q4 2020

Park View Altura Sector 79, Gurugram Bestech Group 560 Q1 2021 Kapil Kanala Senior Associate Director, Research Services SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q3 2020 +91 40 40405555 /[email protected] BUILDING LOCATION DEVELOPER UNITS LAUNCHED UNIT SIZE

M3M Sierra 68 Sector 68, Gurugram M3M Group 180 1,199 – 1,450

Mapsko Mount Ville Sector 79, Gurugram Mapsko Group 802 1,490 – 2,710 cushmanwakefield.com

The above values for high-end segment are for units typically of 2,000-4,000 sf A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION The above values for mid segment are for units typically of 1,600-2,000 sf Cushman & Wakefield (NYSE: CWK) is a leading global real estate Faridabad & Ghaziabad are not included in the new unit launches in Delhi NCR services firm that delivers exceptional value for real estate occupiers *The quoted capital values across submarkets have recorded a 2 – 3% decline with adjustments within the respective price ranges. and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and High-end Segment Mid Segment 60 countries. In 2019, the firm had revenue of $8.8 billion across core South-west: Shanti Niketan, Westend, Anand Niketan, Vasant Vihar South-east: , Kalindi Colony, Ishwar Nagar, Sukhdev Vihar, services of property, facilities and project management, leasing, South-east: Friends Colony East, Friends Colony West, , – I, Greater , Pamposh Enclave capital markets, valuation and other services. To learn more, visit Kailash – II South-central: Uday Park, Green Park, , Asiad Village, Geetanjali Enclave, www.cushmanwakefield.com or follow @CushWake on Twitter. South-central: , Anand Lok, Niti Bagh, , Enclave, Safdarjung Enclave, Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar Development Area, Mayfair Gardens, Panchsheel Park, Soami Nagar, Sarvaodaya Enclave Gurugram: Sohna Road (Sectors 38, 47-49), Southern Peripheral Road, New ©2020 Cushman & Wakefield. All rights reserved. The information contained within Central: Jorbagh, Golf Links, Amrita Shergil Marg, Aurangzeb Road, Prithviraj Road, Sikandara Road, Gurugram, Dwarka Expressway and Sohna this report is gathered from multiple sources believed to be reliable. The information Tilak Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar, Nizamuddin, Tees January Marg, Noida: Sectors 50, 74-79, 82, 83, 110, 112, 115-121, 134, 135, 137, 143, 150, may contain errors or omissions and is presented without any warranty or representations as to its accuracy. 151 and 168), Greater Noida and Yamuna Expressway Gurugram-Luxury: Golf Course Road