results compiled
TRANSCRIPT
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Variable type Variable name Description
Project location
Classifies the projects based on
geographcal location
Project city tier
Classifies the projects based on
the Tier of the city in which the
project is located
Project city - metro status
Classifies the projects in two
categories - those in metros and
those in non-metros
Project built up area
Measures the total built up area
of the projetct
Project end use type
Classifies projects based on the
type of development viz.
townships, apartments etc.
Project segment
Classifies residential projects
based on amenities, pricing and
other facilities
Investment mode
Classifies private equity
investment into two categories
depending on the mode of
investing
Investor origin
Classifies the investor into two
categories depending on their
origin
Investor fund type
Classifies the investor into two
categories depending on the fund
type
Net investment
Measures the net amount of
money invested by the private
equity investor
Project characteristics
Investment and Investor
characteristics
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Developer characteristics Years of experience
Measures the expertize level of
the developer based on the
number of years it has spent in
the real estate industry
Corruption index
Measures the level of corruption
in the city
City competitiveness score
Measures the competitiveness
score of cities based on Porter
criteria
Purchasing
Other characteristics
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Type Hypothesis
Dummy variable. Takes values 1 through 5
for the five regions - North, East, West,
South, Central respectively
The location preferences may
or may not exist, depending
on the type of promoter and
investor
Dummy variable. Takes values 1 through 3
for three types of cities - Tier -1, 2 and 3
Dummy variable. Takes values 1 or 0
depending on whether the project city is a
metro or not
Continuous variable measured in square
meters
Dummy variable. Takes values 1 through 7
depending on the type of end use
Dummy variable. Takes values 1 through 3
depending on the project segment - Luxury,
Mid-segment and low-budget
Dummy variable. Takes values 1 or O
depending on whether the mode of
investment is project or entity
Dummy variable. Takes values 1 or O
depending on whether the investor is of
foreign origin or domestic
Dummy variable. Takes values 1 or O
depending on whether the fund is dedicated
or general purposeContinuous variable measured in US $
million. All values are adjusted for the 2012
as the base year.
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Continuous variable measured years
Continuous variable based on the index
scores developed as a part of corruption
perception index
Continuous variable based on the index
scores developed in India competitiveness
report 2012
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Feature Domestic Foreign
Mean investment (US $ M) - investment mode
Project mode 47.3 84
Med 25 50
Count 141 65
Entity mode 38 110
Med 25 74
Count 40 47
Mean investment (US $ M) - Geographical location
North 40.1 64.9
Med 32.7 32
Count 35 17
East 18.1 110.7
Med 17.6 110.7
Count 4 1
West 60.4 88.7
Med 25.3 35.4
Count 49 21
South 43.5 80.0
Med 22.7 51.2
Count 47 23
Central 14.7
Med 14.7 Count 2
Mean investment (US $ M) - Tier of city
Tier - 1 43.2 80.2
Med 25 44
Count 93 40
Tier - 2 56.4 63.7
Med 23 57
Count 42 19
Tier - 3 60.9 166.1Med 60.9 166.1
Count 2 2
Mean investment (US $ M) - Metro status
Metro 42.5 79.3
Med 25.3 39
Count 91 36
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Non - metro 57.5 75.9
Med 27.2 63.1
Count 46 25
Mean competitiveness score of city 61.9 61.1
Mean corruption perception index 3.3 3.3
Mean Purchasing power of the city 50.2 50.8
Mean experience of developer (yrs) 26.8 24.6
Mean built up area of project ( in 1000 sqm) 303.1 409.8
70 24
Mean built up area to land area ratio 1.93 1.42
68 24
Mean investment (US $ M) - Project segment
Luxury 36.9 49.5
Med 18 36
Count 37 15
Mid-segment 50.6 99.1
Med 24 38
Count 52 21
Low-budget 14.4 32.7Med 11 36.4
Count 7 3
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Mean comparison
-4
0.0001
3.33
0.0009
-0.92
0.357
-
-
-2.47
0.01
-2.05
0.04
--
-3.02
0.0025
-2.13
0.033
-
-
-2.69
0.007
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-2.7
0.007
-1.27
0.204
-18.93
0
1.87
0.037
-1.34
0.18
-2.62
0.008
-
-
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Feature Dedicated Diversified
Mean investment (US $ M) - investment mode
Project mode 57.2 61.6
Med 33 36
Count 118 87
Entity mode 56.4 90.7
Med 36 50
Count 35 52
Mean investment (US $ M) - Geographical location
North 49.6 45.6
Med 34.8 30
Count 34 18
East 15.3 68.6
Med 11 68.7
Count 3 2
West 78.5 59.1
Med 35 33.3
Count 38 31
South 48.8 63.4
Med 27 41.7
Count 38 32
Central 14.7
Med 13.7 Count 2
Mean investment (US $ M) - Tier of city
Tier - 1 52.5 57.8
Med 29 31
Count 77 55
Tier - 2 60.2 56.7
Med 35 33
Count 34 27
Tier - 3 114.4 110.7Med 68 110.7
Count 3 1
Mean investment (US $ M) - Tier of city
Metro 53.4 53
Med 34.7 36
Count 74 52
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Non - metro 62 66.6
Med 36 44.3
Count 40 31
Mean competitiveness score of city 61.8 61.5
Average corruption perception index 3.28 3.33
Mean Purchasing power of the city 50.1 50.9
Average experience of developer (yrs) 24.3 26.9
Mean built up area of project (10000 sqm) 360.5 431.8
65 29
Mean built up area to land area ratio 1.9 1.57
64 28
Mean investment (US $ M) - Project segment
Luxury 47.4 30.5
Med 18.5 18
Count 21 31
Mid-segment 62.4 71.6
Med 33.7 30.6
Count 23 49
Low-budget 15.0 27.2Med 11.8 26
Count 4 6
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Mean comparison
-1.26
0.207
0.71
0.477
-0.3
0.779
-
-
-0.01
0.992
-0.94
0.347
--
-1.17
0.242
-0.73
0.465
-
-
-0.63
0.529
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-1.33
0.183
-1.24
0.215
-16.29
0
0.84
0.2
0.8
0.42
-0.83
0.406
-
-
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Feature Luxury Mid - segment
Mean investment (US $ M) across project segment 40.6 64.6
Med 18.5 30
Count 52 73Net 2110.8 4713.2
Average experience of developer (yrs) 21.6 23.1
Count 65 98
Mean competitiveness score of city 62.3 61
Count 60 94
Location of projects across cities
Based on Tier of the city Luxury Mid - segment
% of projects in Tier - 1 75% 55%
% of projects in Tier - 2 23% 43%
% of projects in Tier - 3 2% 2%
Based on metro status
% of projects in metros 68% 54%
% of projects in non-metros 32% 46%
Mean built up area (1000 sqm) 279 472
Mean built up / land area ratio 2.02 1.66
Total number of projects 60 94
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Low budget
Mean comparison - Low
budget and mid-segment
19.9
17.3 1.37
10 0.17 198.2
17.5
19 0.07
0.944
61.7
13 -0.92
0.357
Low budget
69%
23%
8%
69%
31%
213
1.66
13
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Feature Townships Apartment
Mean investment (US $ M) across project end-use type 92.1 37
Med 57.9 18.9
Count 36 95Net 3315 3516
Average experience of developer (yrs) 26.6 19.4
Count 45 132
Mean competitiveness score of city 59.5 62.4
Count 46 114
Location of projects across cities
Based on Tier of the city
% of projects in Tier - 1 39% 72%
% of projects in Tier - 2 59% 27%
% of projects in Tier - 3 2% 1%
Based on metro status
% of projects in metros 43% 67%
% of projects in non-metros 57% 33%
Mean built up area (1000 sqm) 759.2 206.4
Mean built up / land area ratio 0.94 2.19
Total number of projects 46 114
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Mean comparison -
Townships and
Apartments
-4.520
-3.18
0.001
3.09
0.002
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Feature Domestic Foreign
Mean investment (US $ M) - investment mode
Project mode 47.3 84
Med 25 50
Count 141 65
Entity mode 38 110
Med 25 74
Count 40 47
Z score 0.76 -0.66
P value 0.447 0.509
Mean investment (US $ M) - Tier of city
Tier - 1 43.2 80.2
Med 25 44
Count 93 40
Tier - 2 56.4 63.7
Med 23 57
Count 42 19
Z score 0.13 -0.39
P value 0.896 0.696
Mean investment (US $ M) - Metro status
Metro 42.5 79.3
Med 25.3 39
Count 91 36
Non - metro 57.5 75.9
Med 27.2 63.1
Count 46 25
Z score -0.14 -1.16
P value 0.888 0.246
Mean investment (US $ M) - Project segment
Luxury 36.9 49.5
Med 18 36
Count 37 15
Mid-segment 50.6 99.1
Med 24 38
Count 52 21
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Z score 0.81 1.35
P value 0.417 0.177
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Feature Dedicated
Mean investment (US $ M) - investment mode
Project mode 57.2
Med 33
Count 118
Entity mode 56.4
Med 36
Count 35
Z score -0.54
P value 0.589
Mean investment (US $ M) - Tier of city
Tier - 1 52.5
Med 29
Count 77
Tier - 2 60.2
Med 35
Count 34
Z score -0.05
P value 0.96
Mean investment (US $ M) - Tier of city
Metro 53.4
Med 34.7
Count 74
Non - metro 62.0
Med 36
Count 40
Z score -0.31
P value 0.756
Mean investment (US $ M) - Project segment
Luxury 47.4
Med 18.5
Count 31
Mid-segment 62.4
Med 33.7
Count 49
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Z score 0.64
P value 0.522
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Diversified
61.6
36
87
90.7
50
52
-0.51
0.61
57.8
31
55
56.7
33
27
-0.08
0.936
53.0
36
52
66.6
44.3
31
-1.13
0.258
30.5
18
21
71.6
30.6
23
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1.8
0.071
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Investor origin [D= 1 for
domestic and 0 otherwise]
Mode of investment [ D = 1 for
project, 0 otherwise]
Net PE Investment (US $ M) -32.4
t - stat -2.27
p value 0.024
Net PE Investment (US $ M) 1.34
t - stat 0.077
p value 0.938
Net PE Investment (US $ M) -33.23 6.96
t - stat -2.307 0.404
p value 0.022 0.687
Net PE Investment (US $ M) -36.52 -22.13
t - stat -2.910 -0.987
p value 0.005 0.326
Investor origin [D= 1 for
dedicated and 0 otherwise]
Mode of investment [ D = 1 for
project, 0 otherwise]
Net PE Investment (US $ M) 4.16
t - stat 0.306
p value 0.760
Net PE Investment (US $ M) 4.07 1.21
t - stat 0.297 0.069
p value 0.767 0.945
Net PE Investment (US $ M) 1.44 -24.69
t - stat 0.116 -1.054
p value 0.908 0.295
Ratio of the projects built-up
to land area
Investor origin [D= 1 for
domestic and 0 otherwise]
Net PE Investment (US $ M) -10.94
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t - stat -2.363
p value 0.020
Net PE Investment (US $ M) -10.08 -29.68
t - stat -2.218 -2.217
p value 0.029 0.029
Net PE Investment (US $ M) -4.92 -25.62
t - stat -1.058 -1.993
p value 0.293 0.049
Net PE Investment (US $ M) -9.15 -25.88
t - stat -2.018 -1.922
p value 0.047 0.058
MULTIVARIATE REGRESSION
Regression Statistics
Multiple R 0.54
R Square 0.29
Adjusted R Square 0.18
Standard Error 52.82
Observations 92
Coefficients Standard Error
Intercept 30.0 46.2FOR/DOM (Inv origin) -40.0 14.7
ENT/PRO (Inv mode) -27.0 23.7
DED/DIV 24.5 14.0
Built up area 2.4E-05 0.0
Dummy N 48.6 34.9
Dummy E 38.7 52.4
Dummy W 59.6 36.2
Dummy S 47.2 35.5
Metro status 3.3 14.1
Project end use -35.5 15.9
Dummy Luxury 13.0 25.9
Dummy Mid-Segmet 18.3 26.6
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Built up area (in sqm)
Net PE Investment (US $ M)
t - stat
p value
Net PE Investment (US $ M)
t - stat
p value
Net PE Investment (US $ M)
t - stat
p value
3.86E-05 Net PE Investment (US $ M)
3.837 t - stat
0.000 p value
Built up area (in sqm)
Net PE Investment (US $ M)
t - stat
p value
Net PE Investment (US $ M)
t - stat
p value
3.63E-05 Net PE Investment (US $ M)
3.455 t - stat
0.001 p value
Net PE Investment (US $ M)
t - statp value
Project end use type [D=1
for townships and 0 for
apartments] Project metro status
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40.17
3.086
0.003
-11.76
-0.989
0.325
t Stat P-value
0.7 0.517-2.7 0.008
-1.1 0.258
1.7 0.085
1.9 0.056
1.4 0.168
0.7 0.462
1.6 0.103
1.3 0.188
0.2 0.814
-2.2 0.028
0.5 0.617
0.7 0.493
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City competitiveness score Corruption index PPI
-0.29
-0.177
0.860
-8.91
-0.487
0.627
-1.04
-1.847
0.067
-0.99
-2.024
0.047
Project end use type [D=1 for
townships and 0 for
apartments]
Investor origin [D= 1 for
domestic and 0 otherwise] Built up area (in sqm)
57.17
4.239
0.000
55.96 -30.11
4.200 -2.229
0.000 0.027
28.49 -32.00 2.58E-05
2.153 -2.557 2.294
0.034 0.012 0.024
Land area (sqm)
Project end use type [D=1
for townships and 0 for
apartments]
Net PE Investment (US $ M) 7.35E-06
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t - stat 4.219
p value 0.000
Net PE Investment (US $ M) 6.13E-06 49.08
t - stat 3.583 3.402
p value 0.000 0.001
Net PE Investment (US $ M) 4.16E-06
t - stat 2.525
p value 0.013
Net PE Investment (US $ M) 4.82E-06 42.42
t - stat 3.045 3.189
p value 0.003 0.002
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Built up area (in sqm)
3.49E-05
2.817
0.006
0.46 11.00
0.021 0.531
0.983 0.597
Built up area (sqm)
Project segment [ D 1 = 1 for luxury, 0 otherwise
and D 2 = 1 for mid segemt and 0 otherwise]
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1.29E-05
0.958
0.341
-8.02E-06
-0.559
0.578
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Mean comparison Luxury
Project location
Based on Tier of the city
% of projects in Tier - 1 54%
% of projects in Tier - 2 42%
% of projects in Tier - 3 4%
Based on metro status
% of projects in metros 55%
% of projects in non-metros 45%
Total projects 89
Average built up area (sqm) 97691
0.06 Average land area (sqm) 365371
0.952
Average Built up area / Land area 3.33
Apartments
Project location
0.99
0.322 Based on Tier of the city
% of projects in Tier - 1 62%
% of projects in Tier - 2 34%
% of projects in Tier - 3 4%
0.6 Based on metro status
0.548 % of projects in metros 38%
% of projects in non-metros 62%
Based on geographical location
% of projects North 15%
% of projects East 14%
% of projects West 25%
-3.25 % of projects South 45%
0.002 % of projects Central 1%
Total projects 180
Average built up area (sqm) 81405
Average land area (sqm) 113923
Average Built up area / Land area 2.71
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Mid - Budget Low-budget Feature
Geographical location
North
58% 70% Count
37% 9% East
5% 22% Count West
Count
58% 70% South
42% 30% Count
Central
99 23 Count
City tier
86871 712775
150836 221520 Tier - 1
Count
1.80 2.42 Tier - 2
Count
Tier - 3
Count
Townships
Metro status
Metro
43% Count
42% Non - metro
15% Count
57%
43%
23%
6%
23%
47%
2%
53
353188
645531
1.43
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Built up area (sqm) Land area (sqm) Average Built up area / Land area
153116 518055 1.4
18 32 27
34542 289206 1.8
21 26 23256267 266508 4.2
41 47 52
98841 154229 1.9
79 87 100
47012 83550 0.9
2 3 3
172028 190567 2.8
93 107 123
91770 306537 2.0
57 74 69
60124 548745 1.1
11 13 13
172028 190566 2.77
93 107 125
86651 342728 1.83
68 87 80
G
th
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ives an idea of the real option in the project. Since not all PE deal are at
e land acquistion level, an investor may be inclined to invest in projects
ehre the FAR is higher since the total saleable area goes up. Explored
some papers which have used this.
High rise apartments
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Without PE
investment With PE investment
Mean project cost (Rs. Crore) 951 1651
Built-up to land-area ratio 1.35 7
Construction cost to land cost ratio 1.78 1.86
Land acquistion cost (Crore Rs. Per acre)
Non-metro 11.47 27.46
Metro 19.44 91.54
Overall 15.39 64.08
Total projects 59 42
Probit model - 1
Variable Coefficient Std. Error
B_L 0.3531800 0.10
PROJECT_COST__RS__CRORE_ 0.0000238 0.00
METRO_STATUS 0.0504130 0.28
CC_LC -0.0909970 0.08C -0.8528140 0.28
McFadden R-squared 0.181 Mean dependent var
S.D. dependent var 0.495 S.E. of regression
Akaike info criterion 1.212 Sum squared resid
Schwarz criterion 1.341 Log likelihood
Hannan-Quinn criter. 1.264 Deviance
Restr. deviance 137.141 Restr. log likelihood
LR statistic 24.760 Avg. log likelihood
Prob(LR statistic) 0.000
Obs with Dep=0 59 Total obs
Obs with Dep=1 42
Probit model - 2
Variable Coefficient Std. Error
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METRO_STATUS 0.041572 0.097833
B_L 0.010113 0.004253
C 0.356547 0.070432
R-squared 0.060432 Mean dependent var
Adjusted R-squared 0.041257 S.D. dependent var
S.E. of regression 0.484999 Akaike info criterionSum squared resid 23.05198 Schwarz criterion
Log likelihood -68.70567 Hannan-Quinn criter.
F-statistic 3.151616 Durbin-Watson stat
Prob(F-statistic) 0.047151
Probit model - 3
Variable Coefficient Std. Error
B_L 0.01016 0.004
END_USE 0.049557 0.109
C 0.342369 0.092
R-squared 0.061 Mean dependent var
Adjusted R-squared 0.042 S.D. dependent var
S.E. of regression 0.485 Akaike info criterion
Sum squared resid 23.045 Schwarz criterion
Log likelihood -68.691 Hannan-Quinn criter.
F-statistic 3.166 Durbin-Watson stat
Prob(F-statistic) 0.047
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-2.29
0.011
-4.05
0.001-1.37
0.085
-2.16
0.0154
-1.13
0.129
-2.48
0.006
z-Statistic Prob.
3.45 0.001
0.28 0.777
0.18 0.855
-1.18 0.240-3.01 0.003
0.416
0.448
19.302
-56.190
112.380
-68.570
-0.556
101
t-Statistic Prob.
0
500
1000
1500
2000
Without PE investment With PE investment
Project cost
1.35
7
1.78
Without PE investment With P
Land usage and cost structBuilt-up to land-area ratio Construction cost to l
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
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0.424926 0.6718
2.377937 0.0193
5.062263 0
0.415842
0.495325
1.4199141.497591
1.45136
1.860698
t-Statistic Prob.
2.401 0.018
0.456 0.649
3.727 0.000
0.416
0.495
1.420
1.497
1.451
1.828
Without PE investment With PE investmen
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Project cost
1.86
E investment
reand cost ratio
Land acquistion cost (Crore Rs. Per acre)
Tier - 1 only Land acq. cost
Tier 2 & 3 Land acq. costs
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