Diggi Multitrade Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS</dhhead>

GENERAL OUTLOOK:

Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the countrys GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

Global Economy

Global residential real estate markets peaked post COVID-19 on the back of forecast long-term cheap debt, and peoples desire to spend lockdown and beyond in a bigger home. What homeowners, governments and central banks failed to anticipate was a rapid rise in inflation so soon after the pandemic - along with consequent central bank rate rises. Now, these macroeconomic factors are dictating the terms. The sheer size of the real estate market in global economies makes the sector emblematic of broader economic concerns. As per our FPI index, Infrastructure and real estate is among the top 10 underperforming sectors globally, posting a year-on-year drop of 1.3 percent to a score of 90.49 in September 2023.

As a forerunner to the worldwide property slump, residential real estate markets in the advanced economies overheated during the pandemic while interest rates were low. Since then, many of these economies have entered a vicious debt trap, led by decreases in property value and credit availability. In contrast, households in emerging economies have relatively lower levels of debt and suffered fewer booms and busts in their housing markets, as evidenced in our FPI results, which show how the real estate industry in these markets has taken less of a hit.

The global economic narrative continues to be dominated by an unpredictable geopolitical and trade policy environment.While the evolving outlook has weighed on business confidence, real economic effects have been limited so far and most major markets are expected to see positive growth this year.

Global real estate markets held firm during the second quarter. Uncertainty is delaying some decision-making in industrial markets, adding to the pipeline of future transactions. Retailer demand for quality space remains robust while global office leasing rose.

Capital markets activity is still increasing, supported by liquid debt markets and an increase in larger-scale transactions.Direct transactions rose further in the second quarter despite a moderation in the pace of growth, evidencing that investors continue to deploy capital through volatility.

Indian Economy

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It was also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru was expected to be the most favored property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

Market Size

Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

The Indian real estate market is projected to experience a substantial increase, potentially reaching a value of US$ 5-7 trillion by the year 2047, with the possibility of surpassing US$ 10 trillion.

Housing sales across the top seven Indian cities saw a slight dip of 4% in 2024, with around 4.59 lakh units sold compared to 4.76 lakh in 2023, as per ANAROCK data.

In the first quarter of CY25 (January–March), India’s residential real estate market experienced a notable slowdown, with total housing sales across the top seven cities declining by 28% year-on-year to approximately 93,280 units, down from over 1.30 lakh units in CY2024.

In FY23, India’s residential property market witnessed with the value of home sales reaching an all-time high ofRs. 3.47 lakh crore (US$ 42 billion), marking a robust 48%

YoY increase. The volume of sales also exhibited a strong growth trajectory, with a 36% rise to 379,095 units sold.

Indian real estate developers operating in the country’s major urban centers are poised to achieve a significant feat in 2023, with the completion of approximately 558,000 homes.

In 2023, demand for residential properties surged in the top 8 Indian cities, driven by mid-income, premium, and luxury segments despite challenges like high mortgage rates and property prices.

Indias physical retail landscape is poised for a substantial boost, with nearly 41 million sq. ft of retail developments set to be operational between 2024 and 2028 across the top 7 cities, encompassing projects in various stages from construction to planning.

For the first time, gross leasing in Indias top 7 markets surpassed the 60 million sq ft mark, reaching an impressive total of 62.98 million sq. ft, marking a substantial 26.4% increase compared to the previous year. Notably, the December quarter emerged as the busiest quarter on record, with gross leasing hitting 20.94 million sq. ft.

CBRE anticipated 14% increase in gross leasing transactions for office spaces across nine major cities in calendar year 2024, with a projected total of 70 million square feet. This growth is attributed to increased demand from both global and domestic corporate entities.

Technology companies held the highest share in leasing activity at 22% during first quarter of 2024.Engineering and manufacturing (E&M) companies accounted for 13%, and banking, financial services and insurance account for 12%. Flexible space operators increase by 48%, showcasing their notable contributions.

According to Savills India, real estate demand for data centers is expected to increase by 15-18 million sq. ft. by 2025.

India’s office sector had a record-breaking 2024, clocking 89 million sq. ft. of gross leasing across the top 8 cities the highest ever. This marks a 19% jump over 2023, surpassing the previous peak by 14 million sq. ft.

In 2023, office absorption in the top seven cities stood at 41.97 million Sq. ft. and Gross Leasing Volume is at 62.98 million sq. ft.

Fresh real estate launches across India’s top seven cities grabbed a 41% share in the first quarter of 2023 (January-March), marking an increase from the 26% recorded in the same period four years ago. Out of approximately 1.14 lakh units sold across the top seven cities in the first quarter of 2023, over 41% were fresh launches.

In 2021-22, the commercial space was expacted to record increasing investments. For instance, in October 2021, Chintels Group announced to invest Rs. 400 crore (US$ 53.47 million) to build a new commercial project in Gurugram, covering a 9.28 lakh square feet area. The transactions of commercial real estate doubled and reached 1.5 million sq. ft. in Q1 of 2023.

According to the Economic Times Housing Finance Summit, about three houses are built per 1,000 people per year compared with the required construction rate of five houses per 1,000 population. The current shortage of housing in urban areas is estimated to be ~10 million units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the country’s urban population.

REAL ESTATE MARKET:

The demand for residential properties surged in the top 8 Indian cities in 2023. This was supported by mid-income, premium, and luxury segments in spite of challenges like high mortgage rates and property prices. India’s residential real estate industry saw a strong 48% YoY gain in FY23, with home sales values hitting an all-time high of 3.47 lakh crore (US$42 billion). From 12,000 crore (US$ 1.72 billion) in 2019, the real estate industry is expected to reach 65,000 crore (US$ 9.30 billion) by 2040. The Indian real estate market is predicted to grow from $200 billion in 2021 to $1 trillion by 2030, and by 2025, it will account for 13% of the nation’s GDP.

SWOT Analysis of the Real Estate Sector Strengths:

Employment Generation:The real estate sector is one of the largest employment generators in India, second only to agriculture. Record Sales:The sector witnessed significant residential sales (74,486 units in Q1 FY24), indicating strong market demand. Diverse Segments:Strong performance across various segments (residential, commercial, retail, hospitality) demonstrates versatility and resilience.

Weaknesses:

High Mortgage Rates: Rising interest rates can deter potential homebuyers and impact affordability. High Property Prices: Elevated property prices may limit market access for lower-income segments, affecting overall demand. Bureaucratic Challenges: Complex regulatory frameworks can slow down project approvals and increase costs.

Opportunities:

Projected Growth: The Indian real estate market is expected to grow from $200 billion in 2021 to $1 trillion by 2030, offering significant investment potential. Urbanization: Increasing urbanization creates ongoing demand for housing and commercial spaces in cities and semi-urban areas. Tourism Growth: Rising tourism can boost the hospitality sector, creating opportunities for new developments.

Threats:

Economic Volatility: Economic uncertainties or slowdowns could impact buyer sentiment and sales. Regulatory Risks: Frequent changes in government policies may create an unstable environment for developers and investors. Market Saturation: Rapid growth could lead to oversupply in certain segments, affecting pricing and profitability.

OPPORTUNITY AND CHALLENGES Strengths

Established Database: A robust database nurtured over years of consistent follow-up.

Proven Marketing Success:Effective use of real estate social media marketing and geo-farming to build a market presence.

Client Loyalty:Many repeat clients and referrals thanks to exceptional service and market expertise.

Strong Work Ethic:Systems for lead tracking and client communication that ensure no opportunity is missed. Weaknesses

Limited Delegation Skills:Struggles to fully delegate tasks to assistant, often micro-managing or taking back control.

Over-dependence on Self:Seen as the team’s sole decision -maker, limiting scalability.

Inefficient Workflows: Lack of detailed S.O.P.s and marketing content calendars leads to inconsistency in execution.

Lacking Google Business Profile:Profile and overall SEO are in need of a serious update.

Burnout Risk:Balancing too many roles without clear boundaries between business and personal time. Opportunities

Technology Adoption: Tools like a CRM system and automated follow-up sequences could streamline operations and improve efficiency.

Expanding Geographic Reach:Tapping into nearby high-value neighborhoods offers significant growth potential.

Leveraging Assistant’s Strengths:With better delegation, assistant could take over administrative and operational tasks, freeing up more time for strategic planning.

Business Growth: Building a team of specialists—such as buyer’s agents or a marketing coordinator—would increase bandwidth and revenue.

Threats

Competitor Innovation: Competing agents in the area are leveraging advanced real estate lead generationtechnology and digital marketing.

Market Volatility: Interest rates and housing inventory fluctuations could reduce transaction volume.

High Turnover in Real Estate:Retaining team members like the new assistant may be challenging without proper onboarding and career development opportunities.

Client Expectations:Clients might resist working with new team members if expecting to work directly with the face of the business.

BUSINESS OVERVIEW:

Our Company’s business activities may be classified as follows:

Trading in real estate by way of acquiring interests in various real estate projects such as flats, land and commercial offices.

PRESENCE IN CERTAIN AREAS OF MUMBAI SUBURBS:

A substantial amount of our business activities are concentrated in certain areas of Mumbai suburbs such as Mira Road and Naigaon. We believe that we have good knowledge of the environment in these areas which assist us in identifying opportunities. Our Company believes that these areas are having tremendous growth potential since the said areas are still to be developed and are an attractive real estate market in terms of returns on investment and depth of demand for real estate developments.

CONTINUED FOCUSIN REAL ESTATE ACTIVITIES:

We intend to continue our focus in the real estate activities. We believe that the areas where we have focused our real estate activities are an attractive market in terms of return of investment and depth of demand for real estate developments.

FOCUS IN NEW AREAS:

Although, we have historically focused our business activities in Mumbai suburbs such as Mira Road and Naigaon. We are in process of establishing our presence in other areas of Mumbai suburbs.

TO CONTINUE EXPANDING OUR BUSINESS BY INCLUDING NEW SERVICES:

We intend to explore opportunities to expand our operations by developing new verticals within our existing lines of business. Further expanding our offerings will help us to build on existing diversification of our business.

For and on behalf of the Board

Diggi Multitrade Limited

SD/-	SD/-
Samarth Prabhudas Ramanuj	Shruti Ramanuj
Managing Director	Director & CFO
DIN: 06660127	DIN: 9093690

Date: 06/09/2025

Place: Thane