Global Economic Overview1
The global economy in CY 2024 remained steady despite a challenging macroeconomic landscape shaped by geopolitical tensions, trade uncertainties, and prolonged monetary tightening. With global GDP growing by 3.3%, advanced economies faced several headwinds while Emerging Markets and Developing Economies (EMDEs) continued to play a significant role in supporting overall growth.
Inflationary pressures eased over the year, with the global inflation rate dropping to an estimated 5.7%, driven by more stable energy and food prices, alongside improvements in supply chain operations. In response to moderating inflation, central banks shifted towards more accommodative monetary policies, aiming to encourage growth and improve business confidence.
Amidst prolonged geopolitical conflicts in eastern Europe and the Middle East, global energy prices have remained elevated in recent years. Recently, however, uncertainties around US-driven tariffs, combined with the production expansion by OPEC+, have led to a steep decline in the energy prices. This bears a positive impact impacting key industries including steel and cement production by lowering their input costs. The volatile macroeconomic environment has also dampened investor sentiment while leading to a decline in the value of US dollar.
Outlook
The global economic outlook for CY 2025 and beyond remains stable, supported by easing inflation, improved liquidity, and a gradual recovery in investment activity. Global GDP is expected to grow by 2.8% in CY 2025 and 3.0% in CY 2026, reflecting a stable macroeconomic environment despite persistent geopolitical tensions and trade-related uncertainties. Advanced economies are expected to grow at a moderate pace, while Emerging Market and Developing Economies (EMDEs) are set to remain the primary contributors to global growth, with a forecasted growth rate of 3.7% in CY25.
Amid the global backdrop, India continues to demonstrate resilient economic momentum. Currently ranked as the fourth-largest economy in the world in nominal terms, India is poised to become the third-largest by the end of CY 2025, driven by strong domestic consumption, policy reforms, and infrastructure-led growth. The countrys favourable demographics, expanding manufacturing base, and digital economy are expected to reinforce its role as a key engine of global growth in the coming years.
Global inflation is expected to continue its downward trajectory, declining to 4.3% in CY 2025 and further to 3.6% in CY 2026. This ongoing disinflation, coupled with stabilising commodity prices and improved supply chain conditions, is anticipated to support an expansionary policy stance in many countries.
Indian Economic Overview2
India maintained its position as one of the fastest- growing major economies in the world during FY 2024-25, registering a strong GDP growth rate of 6.5%. This performance stood out amid a globally uncertain environment, driven by strong domestic demand, sustained government capital expenditure, and resilient momentum across key sectors. Private consumption remained a vital pillar of growth, supported by rising incomes, a stable labour market, and the expanding urban middle class.
Outlook3
Indias economy is expected to maintain its growth momentum, with GDP projected to hold steady at 6.5% in FY 2025-26, outpacing global and regional counterparts. Inflation is likely to remain within a manageable range of 4.0% to 4.2%, in line with the Reserve Bank of Indias target, offering room for further monetary easing. This environment is expected to encourage credit expansion and consumer spending.
Domestic demand is expected to remain strong, supported by infrastructure development and a renewed uptick in private sector investment. The governments policy measures, such as tax revisions, are set to enhance disposable incomes and fuel consumption. While external risks persist, India remains due to sustained consumption trends and effective policy measures, offering a positive economic outlook over the long term.
2
https://pib.gov.in/PressReleasePage.aspx?PRID=21133163
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2120509GDP growth rate of India over the years
Industry Overview Real Estate Sector
The global real estate sector is gradually stabilising following the disruption caused by the pandemic. As economies adapt to new norms and cyclical forces begin to realign, investor confidence is showing signs of recovery. Key markets across the globe are experiencing a rebound in volumes, influenced by changes in interest rates and the normalisation of supply chains. This resurgence is supported by an increasing focus among global stakeholders on long-term, stable assets.
Indias real estate sector closed 2024 on a historic high, marked by record leasing activity, strong residential sales, and a healthy pipeline of new launches. Equity investments are expected to touch USD 10 billion in 2024, with the commercial and residential segments leading capital inflows.4 Notably, the residential sector attracted the
largest share of investment at 45%, signaling a shift in investor focus away from the traditionally dominant office sector, which accounted for 28% of inflows.5
Looking ahead, the real estate sector appears to set for further growth, supported by accommodative monetary policies and a broader economic recovery. A significant driver of this momentum is the shift in interest rate policy by central banks. The Indian real estate market is expected to sustain its growth momentum while embracing greater diversification. With a foundation of strong economic fundamentals and progressive government initiatives, the Indian real estate sector has shown considerable strength. It is projected to evolve into a trillion-dollar industry by 2030, underscoring its role as a key pillar of Indias economic future.6
Residential Segment
The global residential real estate sector is undergoing significant expansion, fueled by rapid urbanisation, population growth, and improving economic indicators across major economies. Rising demand for housing in urban centres, coupled with favourable demographic trends and a rising middle class, is propelling the sectors growth. Across both developed and emerging markets, the increasing preference for homeownership and the emphasis on quality living environments have become central to housing policies and development strategies.
Indias residential real estate market is experiencing unprecedented momentum. In the first nine months of 2024 alone, over 229,900 housing units were sold across the top seven cities, reflecting a 17% rise from 20237. This upswing is being driven by higher disposable incomes, evolving lifestyle aspirations, and a supportive macroeconomic backdrop.
The global residential real estate market is poised for sustained growth in the coming years. It is expected to be valued at approximately USD 534.37 trillion in 2025 and is projected to reach USD 648.33 trillion by 2032, growing at a CAGR of 2.8%8. The Indian residential market is also set to continue its upward trajectory, with luxury and ultra-luxury segments expected to outpace affordable housing in terms of demand and investment. Increased consumer spending is reinforcing this trend, supporting stronger retail linkages and higher residential absorption. As structural reforms, policy measures, and rising urban demand align, Indias residential sector is well-positioned to lead the next phase of real estate evolution.
Mumbai Metropolitan Region Residential Segment
The Mumbai Metropolitan Region (MMR) is one of Indias most dynamic and high-value real estate markets. From a residential perspective, the MMR can be broadly divided into seven distinct zones, defined by its geographic profile and the nature of real estate development. Mumbai, the core of the region, stands as the commercial and financial capital of India. It hosts the countrys leading stock exchanges, handles over 50% of Indias foreign trade through its major ports, and is home to the busiest single-runway airport in the country. The city contributes approximately 6% to Indias GDP and nearly one-third of the national tax revenue.
As one of the largest and most expensive real estate markets in India, Mumbai continues to register healthy demand for housing, driven by its strong economic base. The citys diverse industrial ecosystem, along with a vibrant network of small and medium enterprises, generates employment across multiple sectors. This, in turn, fuels steady demand for residential developments across various price segments, making MMR a critical hub for both affordable and premium housing in India.
During the last few years, the city of Thane has grown rapidly, emerging as a key hub for residential and commercial developments. This growth is driven by its strategic location, easy accessibility, robust infrastructure, relatively lower real estate prices and sustained government initiatives. In 2016, the city was shortlisted as part of the Smart City Mission. To address the growing residential demand, reduce traffic congestion and enhance connectivity in the region, the MMRDA has several upcoming projects planned in the region. These include:
• Thane-Borivali Twin Tube Tunnel: A Twin Tube tunnel with 3+3 lane Highway Tunnel connecting Thane and Borivali.
• Thane Coastal Road: A 13 km road connecting Kharegaon toll naka to Gaimukh at Ghodbunder.
• Chedda Nagar-Ghatkopar to Thane Eastern Freeway Extension: Rs. 3,140 crores allocated for this project to improve connectivity between Mumbai and Thane.
Growth Drivers
Employment Generation
MMR continues to be one of Indias most prominent employment hubs, supporting a wide spectrum of industries across both the organised and unorganised sectors. The presence of Grade-A office spaces in Mumbai has attracted numerous corporate establishments. This commercial growth has significantly increased employment opportunities, particularly in the formal sector, thereby contributing to rising housing demand across the region.
Robust Social Infrastructure
Mumbai and its surrounding areas are home to some of the countrys most advanced healthcare facilities, educational institutions and recreational amenities. Access to high-quality social infrastructure, including leading hospitals, schools, colleges and retail malls, enhances the overall quality of life and sustains long-term residential demand.
Reduced Home Loan Interest Rates
The Indian real estate market has benefited from a relatively low-interest rate regime, significantly improving housing affordability. During the current calendar year, the Reserve Bank of India has reduced the repo rate three times, providing a meaningful boost to housing finance affordability and stimulating residential demand. This plays a crucial role in promoting homeownership, especially among first-time buyers and the middle-income segment. Furthermore, competitive lending practices by banks and housing finance companies have strengthened buyer confidence and increased residential uptake.
Rising Disposable Income
The steady rise in disposable income, particularly among urban professionals and dual-income households, has been a major enabler of real estate demand in MMR. With increased financial stability, homebuyers are now seeking more than just basic housing. They are aspiring for lifestyle-oriented living spaces that offer comfort, connectivity, and convenience. This shift in consumer preferences is encouraging the development of high-quality, value-driven residential projects.
Challenges
High Property Prices
Property prices in MMR remain among the highest in the country, posing a significant affordability challenge for middle and lower-income groups. Limited land availability further drives up prices, resulting in increased vertical development and intense competition for developable plots.
Legal and Environmental Hurdles
Real estate development in MMR is often hindered by legal disputes related to land acquisition, rehabilitation, and funding. Additionally, large-scale development can have environmental repercussions, including pollution, pressure on natural resources, and the loss of green spaces, which invite scrutiny and project delays.
Regulatory Delays
Obtaining multiple approvals and clearances remains a time-consuming process, often slowing down project execution and affecting delivery timelines. While regulatory frameworks like RERA have improved transparency, bottlenecks in implementation and bureaucratic delays continue to impact overall efficiency and developer confidence.
Company Overview
Arkade Developers, a trusted name in Mumbais real estate landscape, has carved a niche in developing premium, aspirational lifestyle residences across the Mumbai Metropolitan Region (MMR). With over two decades of experience, the Company has consistently delivered high- quality, design-forward, and sustainably built homes that resonate with the evolving needs of modern urban living. Based in Mumbai, Arkade focuses on both greenfield developments and the redevelopment of existing premises, with a strategic emphasis on high-density, well- connected locations. With 31 completed projects, over 5.5 million square feet delivered, and 2 million square feet currently under development, the Company has built a solid track record of timely delivery and customer satisfaction.
Arkades business model is rooted in a customer-centric approach, combining aesthetic excellence, lifestyleenhancing amenities, and long-term value creation. With a clear commitment to sustainability, quality, and ethical business practices, Arkade Developers continues to shape the skyline of Mumbai, crafting homes, building trust, and enriching lives across generations.
Company Outlook
In line with our strategy to strengthen our presence across key micro-markets in Mumbai, we are entering FY2025-26 with a renewed focus on scale, location quality and segmental diversification. Over the past financial year, we have added a development potential of approximately 17.5 acres , excluding the recently acquired Thane parcel with an additional 9.26 lakh sq. ft. of buildable potential. Together, this translates into a cumulative development pipeline exceeding 25.5 acres and a projected GDV of nearly Rs. 10,000 crore, setting the stage for multi-year revenue visibility.
Notably, our pivot toward premium and uber-luxury developments is reflected by landmark acquisitions such as the Filmistan Studio project an iconic address that marks our entry into a highly aspirational segment of the market. These flagship projects, along with our expansion into Thane one of MMRs fastest-growing residential zones position us well to tap into evolving consumer preferences, expand our brand equity and deliver longterm value to our stakeholders. This evolving portfolio mix reflects our calibrated shift from mid-market housing toward high-value, design-led urban living experiences.
Key Strengths
Strategies for the future
| Expansion in Eastern MMR | Recognising the rising potential of Mumbais eastern suburbs, Arkade plans to deepen its footprint in this high-growth corridor. Driven by expanding infrastructure, proximity to business hubs, robust social amenities, and ongoing urban renewal efforts, the eastern region presents strong demand for quality housing. The Company aims to leverage these growth drivers to meet the rising aspirations of homebuyers in the region. |
| Moving Up the Value Chain | Building on its legacy of delivering value luxury residences, Arkade intends to move further up the value chain by developing larger land parcels that enable the construction of more premium residential projects. These projects will offer enhanced lifestyle amenities, expansive open spaces, and recreational facilities, catering to a discerning customer base seeking elevated living experiences in high- density urban locations. |
| Continued Focus on a Blended Business Model | Arkade will continue to pursue its blended development approach, comprising both greenfield projects on acquired land and redevelopment of existing residential premises. This dual strategy allows the Company to remain capital efficient, especially in redevelopment projects where upfront land costs are significantly lower. With growing opportunities in both the western and eastern parts of MMR, this approach ensures sustainable growth while meeting diverse housing needs across segments. |
Opportunities
| Metro and Airport Projects in MMR | The operationalisation of Navi Mumbai International Airport (NMIA) in late 2025 is already transforming real estate dynamics in Panvel, Ulwe, and Taloja. MMRDAs Rs. 40,187 crore budget for FY2025-26 also allocates Rs. 3,247 crore to Metro Line 4 (Wadala-Kasarvadavali) and Rs. 2,155 crore to Metro 2B (DN Nagar-Mandale). Proximity to Metro 4 stations has driven price appreciation in Thane and Borivali. |
| Affordable Housing | With an existing shortage of 10.1 million units, the cumulative affordable housing demand is projected to reach 31.2 million by 2030. The Maharashtra Housing Policy 2025 mandates 3.5 million affordable homes by 2030 via Public-Private Partnership model. Based on NITI Aayogs recommendations for the G-Hub in the Mumbai Metropolitan Region, the state might contribute a significant share of the estimated Rs. 20,000 crore viability gap fund via the Affordable Housing Fund to attract investment in the affordable housing sector. |
| Rising Urbanisation | Expedited urbanisation is propelling the growth of Indian cities, with cities expected to accommodate 40% of the population within the next few years. The country is already home to the second-largest urban community in the world and is expected to add another 416 million people to the urban population making it 50% of the total population by 2050. |
| Commercial and Industrial Real Estate | MMRs office spaces are witnessing robust growth, notably with Navi Mumbai office parks near NMIA and Thane IT corridors in proximity of the Thane-Borivali metro. MMR also accounts for 53% of Indias Grade A warehousing demand, propelled by increasing need of last-mile logistics hubs and cold storage units. |
| Growing Popularity of Co-working and Co-Living Spaces | Co-working spaces are witnessing demand owing to popularity with start-ups and Small and Medium Enterprises (SMEs) as well as large corporate houses. Similarly, co-living spaces is also experiencing a surge in popularity due to rising costs of urban housing, growing student population, lifestyle shift among young workforce and limitations posed by the traditional rental arrangements such as limited mobility, upfront security deposits, lock-in period, etc. |
| Proptech Adoption | Proptech is finding increasing utilisation within the younger demographic as virtual tours and 3D walkthroughs facilitate a faster sales cycles in premium projects. Maharashtras State Housing Information Portal (SHIP) will further reduce registration delays, enabling faster turnarounds. |
Financial Performance Financial Review
| Particulars | 2024-25 | 2023-24 | % Change |
| Revenue from Operations | 68,309.62 | 63,473.65 | 7.62% |
| Other Income | 1,150.86 | 97.56 | 1,079.64% |
| Total Income | 69,460.48 | 63,571.21 | 9.26% |
| EBITDA | 20,608.91 | 16,744.08 | 23.08% |
| EBITDA Margin (%) | 30.17% | 26.38% | |
| Profit Before Tax | 21,140.82 | 16,511.01 | 28.04% |
| Profit After Tax | 15,692.84 | 12,291.48 | 27.67% |
| Profit After Tax Margin (%) | 22.59% | 19.33% | |
| Earnings per Share (H) | 9.25 | 8.09 |
Financial Ratios
| Particulars | 2024-25 | 2023-24 | % Change |
| Debtors Turnover (in times) | 31.89 | 107.80 | -70.42% |
| Inventory Turnover (in times) | 0.60 | 0.87 | -31.03% |
| Debt Service Coverage Ratio (in times) | 1.21 | 0.51 | 137.25% |
| Current Ratio (in times) | 4.17 | 2.45 | 70.20% |
| Debt Equity Ratio (in times) | 0.13 | 0.21 | -38.10% |
| Creditors Turnover (in Times) | 19.88 | 26.95 | -27.35% |
| Net Profit Margin (%) | 30.88% | 25.86% | 19.41% |
| Return on Net Worth (%) | 26.00% | 47.00% | -44.68% |
Risk Mitigation Strategy Financial Risks
Indian real estate developers must critically assess their financial risks and develop their business strategy to make it more robust in the current economic environment. Developers run the risk of being over-leveraged which can impact their profitability and can even induce an asset price inflation in the broader market.
Macroeconomic Risks
Indian real estate development can be impacted by a broader economic downturn. Ongoing uncertainties in the global macro-environment might impact domestic demand for real estate by driving domestic unemployment and investment slowdown.
Interest Rate Risks
Although the RBI has recently switched to an accommodative stance, the gains made against inflation could be reversed prompting the central bank to reverse its stance. The economy runs the risk of being overheated driven by global supply chain disruption or heightened public spending. An upward revision in interest rates by the RBI increases the mortgage costs impacting housing demand while discouraging investors from borrowing essential for future projects.
Raw Material Risks
Global steel production witnessed a contraction in 2024. The lack of demand from China, which is facing overcapacity issues, can further elevate the prices of steel. Although, global energy prices have moderated considerably, an overturn in price due to prolonged geopolitical crises can impact the steel and cement production, thereby driving input costs for real estate construction.
Environmental Risks
Climate change poses a notable threat to the real estate sector. Extreme weather events are becoming more frequent along with heightened intensity. These events can cause property damage, scarcity of materials, distribution failures, project failures. Regulatory or legislative changes associated with climate change can put pressure on the margins of the developers.
Workforce Risks
Although, Indias demographic landscape is set to provide a large, young workforce in the near-term, there may be a dearth of the skilled workforce required for the industrys expansion. The employability of the workforce requires scaling to meet with the industrys demands to fuel sustained growth.
Human Resource
At Arkade Developers, employees are regarded as the Companys most valuable asset and a key driver of organisational success. The Company is deeply committed to the overall development of its human resources, fostering a purposeful, inclusive, and growth-oriented work environment where individuals are empowered to thrive. A safe, healthy, and supportive workplace is considered fundamental to sustaining a motivated and competent workforce. Employee engagement, well-being, and talent retention continue to be central to Arkades HR strategy, guided by progressive policies and a culture rooted in respect, appreciation, and collaboration.
As part of its commitment to employee wellness, Arkade partnered with Thyrocare to conduct a successful health check-up campaign for its employees. The Monthly Lunch Initiative, reaching over 1,600 labourers across nine project sites, exemplifies the Companys gratitude for its workforce by offering nourishment and nurturing a strong sense of community.
Arkade also believes in celebrating life beyond work. The Company actively brings employees together through vibrant festival celebrations, fostering unity and shared cultural values. Initiatives like team-building games and yoga sessions on International Yoga Day reflect the Companys commitment to employee well-being and team spirit. Through these efforts, Arkade Developers continues to build not just projects but people, purpose, and a thriving work culture.
206
Total employee strength
Internal Control System and Its Adequacy
The Company has instituted a comprehensive and well- structured internal control system, appropriately aligned with the scale, complexity, and nature of its operations. These controls are designed to safeguard assets, ensure accuracy in financial reporting, enhance operational efficiency, and maintain compliance with internal policies. The internal audit function plays a pivotal role in reviewing the effectiveness of these controls across various business functions. Audits are conducted regularly to assess critical processes, identify potential risks, and recommend areas of improvement. These reviews are risk-based and designed to focus on key operational and financial areas.
All significant observations and action plans arising from these audits are presented to the Audit Committee, which closely monitors their implementation and provides strategic guidance to further strengthen the control environment. The internal control system continues to be enhanced in line with evolving business needs and industry standards. The Company remains committed to maintaining a strong control framework that supports sound governance and sustainable growth.
Cautionary Statement
Certain statements in the Management Discussion and Analysis describing future expectations and estimations may be considered forward-looking statements, as defined under applicable laws and regulations. These statements are based on currently available information, forecasts, assumptions and expectations, and involve inherent risks and uncertainties. Actual results may differ significantly or materially from those expressed or implied, due to various external and internal factors. These may include, but are not limited to, changes in the political, economic, regulatory or environmental conditions in India and globally, market volatility, competition, employee costs, changes in tax or legal frameworks, technological disruptions, and labour relations. Such forward-looking statements do not guarantee future performance and should not be relied upon as definitive. The Company assumes no obligation to revise or update any forward-looking statements, whether because of new information, future events, or otherwise.
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