B-Right RealEstate Ltd Management Discussions

Economic Overview

The global economy witnessed moderate growth during FY 2025-26 amid persistent geopolitical uncertainties, evolving trade dynamics, and inflationary pressures across major economies. Despite these challenges, India remained one of the fastest-growing major economies, supported by resilient domestic demand, robust infrastructure spending, increasing private investments, and favourable demographic trends.

The Indian economy continued to demonstrate strong macroeconomic fundamentals, driven by rising consumption, increased capital expenditure, digital transformation, and policy reforms aimed at enhancing ease of doing business. Indias GDP is expected to remain among the highest globally, supported by sustained urbanisation and government initiatives focused on infrastructure and housing development.

The Governments continued emphasis on affordable housing, urban infrastructure, transit- oriented development, and redevelopment of aging urban areas is expected to provide significant impetus to the real estate sector in the coming years.

For FY 2025-26, Indias GDP growth is forecasted to range between 6.3 percent and 6.8 percent, depending on external factors. Currently, most agencies peg the countrys growth in the range of 5.5-6.5%.

Indian Economy

The Indian real estate sector continues to be a significant contributor to the countrys economic growth and employment generation, with strong backward and forward linkages to more than 250 ancillary industries, including cement, steel, construction materials, financial services, and infrastructure. During the year, the sector demonstrated resilience and sustained momentum, driven by healthy demand across residential, commercial, and mixed-use developments.

The residential market in Indias leading metropolitan cities remained robust, supported by strong end-user demand, rising household incomes, evolving lifestyle aspirations, increasing preference for larger and premium living spaces, infrastructure-led urban expansion, and growing confidence in organised and reputed developers.

The redevelopment segment has emerged as one of the most compelling opportunities in urban real estate, particularly in metropolitan regions such as Mumbai, where limited availability of

developable land and a substantial stock of aging buildings continue to drive redevelopment activity. Redevelopment projects not only unlock the intrinsic value of existing assets but also contribute to urban renewal and the creation of modern, sustainable communities.

Indias economy recovered quickly from the pandemic and further growth is expected to be supported by solid domestic demand and increase in capital investments. The International Monetary Fund (IMF) and Reserve Bank of India (RBI) estimate real GDP growth of 6.6% to 6.8% in 2025-26 and 6.5% in 2026-27.

In current dollar terms, Indias gross domestic product (GDP) is now $4.15 trillion compared to $3.92 trillion in 2025-26, according to an estimate by research agency Crisil after the data was released. For FY 2026-27, the IMF projects Indias nominal GDP at approximately $4.47 trillion, and India is expected to retain its position as the worlds fourth-largest economy, ahead of Japan and behind the United States, China, and Germany.

Likewise, Slum Rehabilitation Authority (SRA) projects continue to play a crucial role in inclusive urban development by facilitating affordable housing and improving community infrastructure. In addition, the stressed asset redevelopment segment is gaining traction, presenting significant opportunities for experienced developers to revive stalled and under utilised projects and unlock value through efficient execution and strategic repositioning.

Industry Overview

The Indian real estate sector remains one of the key drivers of economic growth and the second- largest employment generator in the country. The sector currently contributes around 7% to Indias GDP and is expected to contribute nearly 13% by 2030, with the market size projected to grow from approximately US$350-400 billion to US$1 trillion by 2030, registering a CAGR of 15-18%.

Rapid urbanisation, with Indias urban population expected to exceed 600 million by 2030, is driving demand for an additional 25-30 million housing units. The sector continues to attract strong investments, with Indias total FDI inflows reaching approximately US$81 billion in FY 2024-25, while the construction development sector has attracted cumulative FDI of over US$27 billion since April 2000.

According to Savills India, private equity investments in Indian real estate reached approximately US$2.4 billion (?20,300 crore) during the first half of 2025, registering a 38% YoY growth. The Governments continued focus on infrastructure, with a capital expenditure of around ?11 lakh crore in the Union Budget FY 2026-27, along with initiatives such as PMAY-U

2.0, which aims to provide housing assistance to one crore urban families with an investment outlay of ?10 lakh crore, is expected to further support sectoral growth.

Additionally, the Mumbai Metropolitan Region (MMR) presents a significant redevelopment opportunity, with more than 25,000-30,000 aging buildings and over 14,000 cooperative housing societies estimated to be eligible for redevelopment, representing an opportunity exceeding ?30 lakh crore over the long term. Overall, favourable demographics, infrastructure investments, policy support, and increasing urbanisation continue to provide a strong long-term growth outlook for the Indian real estate sector.

Impact of Economic and Regulatory Changes on Real Estate

During 2026, the Indian real estate sector demonstrated resilience despite global economic uncertainties and inflationary pressures. Stable economic growth, rising urbanisation, and continued infrastructure investments supported demand across residential and commercial segments. The sector also benefited from sustained implementation of RERA and various policy initiatives aimed at enhancing transparency, ease of doing business, and redevelopment opportunities.

However, challenges such as fluctuations in construction material costs, financing conditions, and regulatory approval timelines continued to impact project execution and cost structures. As the regulatory landscape continues to evolve, maintaining compliance, improving operational efficiencies, and adapting to changing market dynamics remain critical for sustaining growth and creating long-term value in the real estate sector.

Emerging Trends in Residential Real Estate

The Indian residential real estate sector continued to exhibit strong momentum during 2026, driven by robust end-user demand, rising disposable incomes, and increasing aspirations for premium and lifestyle-oriented housing. The sector witnessed a gradual shift in consumer preferences towards larger homes, integrated townships, and developments offering enhanced amenities, sustainability features, and superior living experiences.

The luxury housing segment remained one of the most resilient and fastest-growing categories, supported by rising affluence, increasing demand from high-net-worth individuals (HNIs) and non-resident Indians (NRIs), and growing preference for premium residences in prime urban locations. The share of luxury housing within overall residential sales continued to increase, reflecting sustained demand for high-quality and aspirational living spaces.

Technology continued to reshape the residential real estate landscape, with developers increasingly leveraging digital platforms, Artificial Intelligence (AI), data analytics, and virtual engagement tools to enhance customer experience, streamline sales processes, and offer personalised services. Smart home features, enhanced security systems, and technology-enabled living solutions are increasingly becoming key differentiators in residential developments.

The demand for second homes, holiday residences, and plotted developments also remained robust, driven by evolving lifestyle preferences, investment diversification strategies, and the growing trend of owning leisure and wellness-oriented properties.

Furthermore, sustainability and wellness have emerged as important considerations for homebuyers, resulting in increasing demand for green buildings, energy-efficient homes, open spaces, and community-centric developments. Buyers are increasingly prioritising projects that offer a balanced lifestyle, better infrastructure, and long-term value creation.

Overall, the residential real estate sector remains well-positioned for sustained growth, supported by favourable demographics, rapid urbanisation, infrastructure development, and evolving consumer preferences. Developers that focus on premium offerings, technological innovation, customer-centricity, and sustainable development are expected to be well-placed to capitalise on the emerging opportunities in the residential real estate market.

Sustained Growth Momentum Expected in Top 7 Cities Residential Real Estate Market

The residential real estate market across Indias top seven cities is expected to maintain its growth trajectory during 2027, supported by resilient end-user demand, improving affordability, favourable demographics, and continued urbanisation. Demand from genuine homebuyers continues to be the primary driver of the residential market, providing greater stability and longterm sustainability to the sector.

After witnessing healthy sales momentum in recent years, residential demand in the top seven cities is expected to remain robust, supported by rising household incomes, increasing aspirations for homeownership, and sustained infrastructure development. New launches are also expected to remain healthy, driven by strong demand visibility and developers confidence in the long-term prospects of the housing market.

A notable trend shaping the residential sector is the growing preference for larger and better- quality homes, with increasing demand for mid-premium and luxury housing segments. Homebuyers are increasingly seeking spacious residences, integrated amenities, and lifestyle-

oriented developments that offer enhanced living experiences, resulting in a gradual shift in the overall composition of residential sales towards premium housing.

Infrastructure-led development, improved connectivity, and the emergence of new residential micro-markets are further expected to support demand across major metropolitan regions. Additionally, the increasing preference for organised and reputed developers, coupled with a continued focus on timely delivery and quality construction, is expected to drive further consolidation within the sector.

As market dynamics continue to evolve, developers are expected to focus on customer-centric offerings, innovative product designs, and sustainable developments that align with changing consumer preferences. Competitive pricing strategies, flexible payment structures, and technology-enabled customer engagement are also expected to play an important role in driving demand.

Overall, the residential real estate market in Indias top seven cities remains well-positioned for sustained growth, underpinned by strong end-user demand, favourable demographics, infrastructure investments, and evolving lifestyle preferences, thereby creating significant opportunities for developers and investors over the medium to long term.

Innovating Affordable Housing for Enhanced Living Experiences

The Indian residential real estate sector continues to witness rapid transformation, driven by technological advancements, changing consumer preferences, and increasing demand for quality housing solutions. As the sector evolves, innovation and technology are playing an increasingly important role in enhancing the homeownership experience across housing segments, including affordable and mid-income housing.

Homebuyers today are seeking more than just affordability; they aspire to own homes that offer superior living experiences, modern amenities, and improved connectivity. The demand for well- planned communities with integrated lifestyle amenities, enhanced security, and sustainable features has continued to gain momentum, particularly among first-time homebuyers and the emerging middle class.

Technology-led innovations, including smart home solutions, home automation systems, digital customer engagement platforms, and AI-enabled services, are increasingly becoming integral components of residential developments. Features such as smart lighting, energy-efficient systems, app-based security solutions, and digital concierge services are enhancing convenience, comfort, and overall quality of life for residents.

Furthermore, sustainability and resource efficiency have emerged as key considerations in residential development. Developers are increasingly incorporating green building practices, energy-efficient designs, water conservation measures, and eco-friendly construction materials to create environmentally responsible and future-ready communities.

The demand for affordable and mid-segment housing remains robust, particularly in locations that offer strong infrastructure connectivity, proximity to employment hubs, and access to social amenities. Developers are responding by focusing on thoughtfully designed, value-driven projects that combine affordability with modern lifestyle features and community-centric living experiences.

The convergence of innovation, sustainability, and affordability is reshaping Indias residential real estate landscape. Developers that successfully integrate technology, customer-centric design, and sustainable development practices into their projects are expected to be well positioned to capitalise on the evolving preferences of homebuyers and drive long-term growth in the residential sector.

Steady Surge in Demand Forecasted for Commercial Realty and Office Market

The office market in India has been actively seeking innovative strategies to enhance absorption rates, consistently striving for expansion and improvement. As we approach 2026, experts foresee a continued upsurge in demand for commercial real estate and a thriving office market characterised by innovation and growth.

The market continued to benefit from a balanced demand-supply environment, supporting stable vacancy levels and providing scope for rental growth in select micro-markets. Rising business confidence, increased investments, and continued infrastructure development are expected to further strengthen the long-term outlook of the commercial real estate sector.

In addition, the industrial and warehousing segment continued to witness healthy momentum, supported by the expansion of e-commerce, manufacturing activities, supply chain diversification, and government initiatives promoting logistics and industrial development. Technology adoption, including Artificial Intelligence (AI), automation, and Internet of Things (IoT)-enabled solutions, is increasingly transforming commercial and warehousing infrastructure, resulting in more efficient and future-ready developments.

2026 is set to witness a consistent upsurge in demand for commercial real estate and office spaces in India. With a focus on innovation, expansion, and enhanced occupier experiences, the market is poised for steady growth and evolution in the year ahead. Developers, occupiers, and

investors alike stand to benefit from the opportunities presented by the dynamic commercial real estate landscape in 2026.

Opportunities

1. Urbanisation and Housing Demand

Indias urban population is expected to increase from approximately 37% currently to over 40% by 2030, adding nearly 90 million new urban residents over the next decade. This is expected to drive demand for an additional 25-30 million housing units by 2030, creating significant opportunities for residential developers.

2. Indian Real Estate Market Growth

The Indian real estate market is expected to grow from approximately US$330-350 billion currently to US$1 trillion by 2030, representing a CAGR of around 15-18%. The sectors contribution to Indias GDP is expected to increase from approximately 7% currently to nearly 13% by 2030.

3. Residential Real Estate Opportunity

The residential real estate market is projected to reach approximately US$500-550 billion by 2030, driven by strong end-user demand, rising incomes, and increasing homeownership aspirations.

Residential sales across Indias top seven cities continue to remain robust, with annual absorption exceeding 4.5 lakh units, providing sustained revenue opportunities for organised developers.

4. Massive Redevelopment Potential in MMR

The Mumbai Metropolitan Region (MMR) presents one of the largest redevelopment opportunities in India:

• More than 25,000-30,000 old buildings are estimated to require redevelopment.

• Over 14,000 cooperative housing societies are potential redevelopment candidates.

• The total redevelopment opportunity in MMR is estimated to exceed ?30 lakh crore over the next 15-20 years.

This provides a substantial long-term project pipeline for developers with redevelopment expertise.

5. Significant Opportunity in SRA Projects

Nearly 40% of Mumbais population resides in slum settlements, creating enormous demand for rehabilitation and urban renewal.

The SRA market represents a multi-decade opportunity with:

• More than 1,500 projects under various stages of development.

• Potential development value estimated at over ?5 lakh crore over the long term.

6. Institutional Investments and Private Equity Investor confidence in Indian real estate remains strong.

Private Equity investments in Indian real estate increased to approximately US$6.7 billion (?57,000 crore) in 2025, registering a 59% YoY growth, according to Savills India.

Institutional investments are expected to remain robust, particularly in:

• Residential developments;

• Redevelopment projects;

• Commercial office assets;

• Warehousing and logistics.

7. Opportunity in Stressed Assets

The Indian real estate sector continues to witness a sizeable inventory of stalled and stressed projects, creating opportunities for experienced developers to acquire, restructure, and revive assets at attractive valuations.

The aggregate value of stressed real estate assets is estimated to exceed ?4-5 lakh crore, providing significant opportunities for value creation.

Threats and Challenges

The real estate industry faces various threats and challenges that can impact its operations, profitability, and growth prospects. Here are threats and challenges:

1. Rising Land Acquisition Costs

Land prices in key metropolitan markets, particularly Mumbai, Bengaluru, and NCR, have witnessed substantial appreciation over the last few years. In prime micro-markets, land values have increased by approximately 20-40% over the past three years, resulting in increased project costs and pressure on developer margins.

2. Construction Cost Inflation

The real estate sector continues to face cost pressures due to volatility in raw material prices and labour costs.

• Steel prices have experienced fluctuations of 15-25% in recent years.

• Cement prices have increased by approximately 8-12% in several regions.

• Labour costs have increased by approximately 8-10% annually.

A 5-7% increase in construction costs can potentially reduce project margins by 100-200 basis points, particularly in projects with fixed pricing commitments.

3. Long Gestation Periods in Redevelopment Projects

Redevelopment and SRA projects generally have longer project cycles due to:

• Multiple approvals;

• Tenant negotiations;

• Regulatory clearances;

• Rehabilitation obligations.

The average project cycle for redevelopment projects ranges between 5-8 years, increasing exposure to market cycles, cost inflation, and policy changes.

4. Approval and Regulatory Delays

Real estate development remains heavily dependent on approvals from multiple authorities. Project approvals in metropolitan cities can take 12-24 months, while complex redevelopment projects may require even longer timelines. Delays often lead to:

• Cost overruns;

• Deferred revenue recognition;

• Increased financing costs.

5. Liquidity and Financing Challenges

The sector remains capital intensive and highly dependent on external funding.

The tightening of lending norms and selective financing by banks and NBFCs may impact project funding availability, particularly for:

• Greenfield developments;

• Redevelopment projects with long gestation periods;

• Stressed asset acquisitions.

Higher borrowing costs may adversely affect profitability and project viability.

6. Competition and Industry Consolidation

The industry is witnessing increasing consolidation in favour of large and organised developers. Competitive intensity has resulted in:

• Higher land acquisition costs;

• Increased customer acquisition expenses;

• Pressure on pricing and project margins.

Developers are increasingly required to differentiate themselves through execution capabilities, brand reputation, and financial strength.

7. Stalled and Stressed Projects

Despite improving market conditions, the sector continues to face challenges arising from stalled projects and delayed completions.

Industry estimates suggest that stressed and stalled real estate assets across the country represent an opportunity as well as a challenge, with aggregate values estimated at ?4-5 lakh crore. Reviving such projects requires significant capital, execution expertise, and regulatory coordination.

8. Redevelopment and SRA-Specific Challenges

For developers focused on redevelopment and SRA projects, key challenges include:

• Obtaining consent from society members and stakeholders;

• Rehabilitation and transit accommodation requirements;

• Changes in redevelopment regulations and policies;

• Litigation and title-related issues;

• Extended execution timelines.

These factors may lead to project delays and increased carrying costs.

9. Climate and Sustainability Challenges

Increasing emphasis on sustainability, green building norms, and climate resilience is leading to higher compliance requirements and additional investments in:

• Energy-efficient technologies;

• Water management systems;

• Sustainable construction materials;

• ESG-related initiatives.

Internal Control System

• The company has established a robust internal financial control system that aligns with the size, and complexity of its operations. It has implemented sufficient controls, procedures, and policies to ensure the efficient conduct of business operation, including adherence to policies and protection of assets. There is structural framework in place to prevent and detect frauds and errors, as well as to maintain the accuracy and completeness of accounting records.

• To maintain the integrity of its financial statements and mitigate the risk of malpractice, the company has designed appropriate frameworks for internal control over financial

reporting. Key processes and policies undergo periodic reviews to assess the adequacy of control in place. Additionally, the company has established an internal Audit function led by the Chief Internal Auditor. The internal audit function plays a crucial role in evaluating and enhancing internal controls. Each financial year, the Audit Committee approves the Internal Audit plan, ensuring that audit activities are aligned with strategic objectives and risk management priorities.

• Financial Control System-

The company has established a robust internal financial control system that matches its operational scale and complexity. This system includes controls, procedures, and policies aimed at ensuring orderly and efficient business conduct.

• Adherence to Policies-

There are measures in place to ensure adherence to company policies, safeguarding of assets, and maintaining accuracy and completeness of accounting records. This is crucial for preventing and detecting frauds and errors.

• Internal Control over Financial Reporting

Specific frameworks have been designed to maintain internal controls over financial reporting. This helps ensure the integrity of Companys financial statements and minimizes the risk of malpractice.

• Internal Audit Function

The Company has established an Internal Audit function, led by an Internal Auditor. This function is responsible for independently evaluating the adequacy and effectiveness of internal control.

Cautionary Statement

This management discussion and analysis contain forward looking statements that reflects your Companys current views with respect to future events and financial performance. Important factors that could make a difference to the Companys operations include labour and material availability, and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax regimes, economic development within India and other incidental factors.