Real Estate & FDI In Real Estate In India

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ITM EEC Batch 13B
Macroeconomics Presentation

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Gaurav Patel
Sharavan Bhumkar
Kishore Gulhane

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  • CHENNAI GST ROAD - ON ROAD PROPERTY - WITHSTOOD THE ONSLAUGHT. FOR SALE - MAIN ROAD PROPERTY - IN CHENNAI, TAMIL NADU - ENTRY FROM NH-45. Prime Vacant Land 5.8 Grounds (13940 sq.ft.) in Singaperumal Koil, Chennai, India on Main GST Road with direct entry from GST Road. Mahindra World City is 1.2 Kms. on one side and Ford Motor Co. is 3.2 Kms. on the other side. Plot with direct entrance from Wide National Highway NH-45. Frontage Width is 46 feet, Rear Width is 56 feet and length is 286 feet. Companies like BMW, Nissan-Renault, Daimler, Enfield, Nokia, Siemens, Hyundai, Ford are in close proximity to this place. The Property has a Security Room with 3-Phase Power Supply and has a Compound Wall of about 11 feet on all sides with a 15 feet gate in the front. Since the Land is located amidst various International Companies, it will be ideally suited for Offices, IT/ITES/BPO Companies, Residential Apartments, etc. Very Ideally suited for Investment Purposes, Immediate Construction of Residential Apartments, Show Rooms, Departmental Stores, Hospitals, Logistics, etc. Appreciation Guaranteed on Investment. In case of interest, please contact:- Mr. K.Aravamudan, Mob:- 0 – 94440 12056. e.mail : hiraytech@yahoo.co.in VERY IMPORTANT NOTE:- The above Site is not affected by the heavy Rains and Thunder Storms that lashed Chennai just recently.
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Real Estate & FDI In Real Estate In India

  1. 1. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Case Study On Real Estate & FDI in Real Estate in India Presented by Gaurav Patel (KH08JUNMBA65) Kishore Gulhane (KH08JUNMBA74) Shravan Bhumkar (KH08JUNMBA100)
  2. 2. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Presentation Flow Real Estate in India Current Trends FDI & Real Estate in India Gaurav Patel Kishore Gulhane Shravan Bhumkar
  3. 3. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Demographics and Development Between 1950 and 2005 the global urban population has more than tripled to reach 3.15 billion. While urbanization has considerably slowed down in developed countries, the enveloping world is where cities are growing the most. It accounted for 68% of the urban population in 2000. By 2020, 77% of the global urban population is expected to be in developed countries. In India, Urban population has been increased from 20% in 1971 to almost to 34% in 2006 and contribute over 50% to GDP.(Source : www.unhabitat.org)
  4. 4. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Indian Economy • Indian Economy currently stands among the world’s 4th largest growing economy in terms of PPP(Purchasing Power Parity). • India’s GDP is estimated to be the third largest in the world by 2020. • India is also considered second most attractive country in world for FDI investments of about US$ 11.14 Billion in 2007 with rise of 36% in terms of rupee and 54 in terms of US dollars. (Source : Economic Budget 2007-08) • India performance has been steady over past 3 years with an average Annual growth rate of 8%. • In recent years, the broad based growth in service sector has been principle driver of GDP growth. • India has a well developed road and rail network. Large investments are underway in areas of: - Highway development - Air-connectivity (Domestic & International) - Up gradation of ports with their privatization - Power sector
  5. 5. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Real Estate in India What is Real Estate Market ? The term ‘real estate’ is defined as land, including the air above it and the ground below it, and any buildings or structures on it. It is also referred to as realty. It covers residential housing, commercial offices, trading spaces such as theatres, hotels and restaurants, retail outlets, industrial buildings such as factories and government buildings. Real estate market involves the purchase, sale, and development of land, residential and non-residential buildings. The main players in the real estate market are the landlords, developers, builders, real estate agents, tenants, buyers etc. The activities of the real estate sector encompass the housing and construction sectors also.
  6. 6. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma History of Real Estate Market Source: Circular NHB(ND)/HFC(P&D)/15.3/6065, National Housing Bank
  7. 7. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Why invest in Indian Real Estate ? • The Size of Indian Real Estate Market is estimated at USD 15 billion and is currently growing at rate of about 30% annually. • The second largest employing sector including construction and facility management. • Strong and Improved economic growth, proactive policy initiatives like relaxation of FDI in construction and availability of finance driven demand for real estate across all sectors - Commercial,Residential,Retail,Hospitality and SEZ in India. • There has been rising demand for quality infrastructure across various segments of the real estate sector.
  8. 8. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Why invest in Indian Real Estate ? • In India demand for new office space has grown from an estimated 3.9 million sq.ft to 45 million sq.ft in 2006-07. • The demand for office space is driven by more than 7000 IT and ITES firm, Financial service provider and other sectors. • As Indian IT-ITES industry has absorbed a total of approx. 30 million sq. ft and is estimated to generate a demand of 150 million sq. ft of space by 2010. High Demand Commercial Real Estate
  9. 9. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Why invest in Indian Real Estate ? • The Residential property market in India constitutes almost 75% of the real estate market in terms of value. • Low per capita housing stock ,rising disposable income coupled with easy finance from housing finance company and banks are driving demand in this sector. • Average house loan borrowers have decreased to 30-35 years from 40-45 years a few years ago. • Housing sector is growing at 30-35% per annum. • The demand for housing is also driven from investor who view it has an attractive investment option as compared to mutual funds and stocks. High return on Residentail Real Estate
  10. 10. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Why invest in Indian Real Estate ? • The Retail industry in India continues to be dominated by individual small format stores with floor space of less than 500 sq.ft. • Total number of retail outlets is estimated to be around 12-15 million, indicating a retail density of 12-14 outlets per 1000 people, which is one of the highest in the world. • The contemporary retail sector is reflected by shopping centers and Multiplex-mall contributing large scale investment in real estate. • The retail sector in India is currently estimated at USD 230 billion. • But the organized retail activity is 7 billion which is mere 3% of total retail sector and is growing at 25% - 30% per annum is expected to be worth over USD 30 billion by 2010. Retail sector facilitating real estate growth
  11. 11. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Why invest in Indian Real Estate ? • Hospitality industry is in India is growing at an annual rate of 8%. • The number of foreign tourist arrivals (Major driver) in country was approx. 4.4 million in 2006-2007. • More than 55% of total demand for hotels in country is generated by foreign leisure tourists and business travelers. • Service Apartments ,Hostels, Wellness space gaining popularity. • With growth in demand for rooms at five star hotels at 18% another 65000 – 85000 rooms will be needed till 2010, results in high level of activity in construction of hotels which will fetch more investors in this sector. High Demand for Hospitality real estate
  12. 12. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Why invest in Indian Real Estate ? • The upcoming realty trend in India after multiplexes and mega housing projects are the Special Economic Zones(SEZ). • Currently only 28 SEZ are operational in country, including those converted from Export processing Zones(EPZ) to SEZ. • Approx. 189 proposals have been granted approval since SEZ Act,2005 came into force. • SEZ’s are in various segments such as multi-product, Information technology, Bio- technology, Gems and Jewellery, textiles and technology initiative industries. • Major Players RELIANCE,ADANI,SUZLON Infrastructure, HINDALCO etc. SEZ’s – The emerging investment option
  13. 13. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Why invest in Indian Real Estate ? • With the opening of the sector for 100% FDI under automatic route, the real estate sector is estimated to capture about 18-20% of the total FDI coming to India in 2005-06. • The FDI in Real Estate is expected to have a favorable multiplier effect on the economy. • As an indicator, for every rupee spent on construction, an estimated 75-80% gets added to the GDP. • The spill-over effect of this initiative can also be witnessed in important sectors like the cement and construction industries, where the key players are expanding capacity to meet the soaring demand. FDI – inviting real estate investments
  14. 14. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma FDI (Foreign direct investment)
  15. 15. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma What is FDI? • Foreign direct investment is the acquisition of assets in a country by foreign entities for the purpose of control . • FDI in India was initiated in 1992. Streamlining of the procedures and substantial liberalization has been done since 1995. As of now, Indian corporate/Registered partnership firms are allowed to invest abroad up to 100% of their net worth and are permitted to make overseas investments in business activity. FDI is now ownership of at least 10% of a business .
  16. 16. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma FDI limits for other sectors are as follows: • Banking - 74% • Non-banking financial companies (stock broking, credit cards, financial consulting, etc.) - 100% • Insurance - 26% • Telecommunications - 74% • Private petrol refining - 100% • Construction development - 100% • Coal & lignite - 74% • Trading - 51% • Electricity - 100% • Pharmaceuticals - 100% • Transportation infrastructure - 100 % • Tourism - 100% • Mining - 74% • Advertising - 100% • Airports - 74% • Films - 100% • Domestic airlines - 49% • Mass transit - 100% • Pollution control - 100% • Print media - 26% for newspapers and current events. 511618.62, 3 8% 320195.21, 2 4% 164910.23, 1 2% 125148.95, 1 0% 95978.61, 7% 93978.61, 7% 21985.64, 2% Services Computer Software & Hardware Telecommunication Construction Activities Housing & Real Estate Automobile Industry Mechanical Industries
  17. 17. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Foreign Direct Investment is encouraged and permitted, subject to certain conditions, in the following real estate sectors in India: • Hotel Development: • Tourism • Hospitality • Township development • Developing Commercial Real Estate • Built-up infrastructure • Housing and construction projects • Building Resorts • Building Hospitals • Building Educational institutions • Building Recreational facilities • Infrastructure projects: regional and local level • Special Economic Zones (SEZ's) Foreign Investment (FDI): Real Estate Sectors in India
  18. 18. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma FDI Inflow in Real Estate 0.5 0.75 0.9 2.6 2.91 3.94 5.43 8.2 0 2 4 6 8 10 12 2003-04 2004-05 2005-06 2006-07E Real Estate Other Sectors Source: ASSOCHAM, E&Y Research Amount in US $ Billion
  19. 19. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Investing in India – Entry Routes Automatic Route Prior Permission (FIPB) Investing in India General rule No prior permission required Only information to the Reserve Bank of India within 30 days of inflow/ Issue of shares By exception Prior Government Approval needed Decision generally Within 4-6 weeks FIPB: Foreign Investment Promotion Board
  20. 20. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Guidelines for FDI in Real Estate
  21. 21. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma FDI Policy Liberalization Path • FDI Policy Liberalization Path
  22. 22. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Guidelines for FDI in Real Estate in India • Conditions for Development • Minimum 10 hectares to be developed for serviced housing plots. • For construction-development projects, Minimum built-up area of 50,000 square meters prescribed. • In case of a combination project, any one of the above two condition should suffice. • At least 50% of project to be developed within 5 years from date of statuary clearances. • FDI is not permitted in the business of buying and selling of property.
  23. 23. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Conditions for investments • Minimum capitalization of US$10 million for wholly owned subsidiaries & US$ 5 million for Joint ventures with Indian partners. • Infusion of fund within 6 months of commencement of business. • Original investment cannot be repatriated before a period of 3 years from completion of minimum capitalization. • Investor may be permitted to exit earlier with prior government approval. Guidelines for FDI in Real Estate in India
  24. 24. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Miscellaneous Conditions • Investor not permitted to sell undeveloped plots • Project to conform to norms and standards laid down by respective state authorities. • Investor responsible for obtaining all necessary approval as prescribed under applicable rules/ by-laws / regulations of the state. • Concerned Authority to monitor compliance of above condition by developer. Guidelines for FDI in Real Estate in India
  25. 25. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Business & Investment Models for FDI Business Models • Large Scale Direct Entry Independent approach for undertaking real estate projects • Establishment of Umbrella Joint Venture Foreign developer/investor enters into a joint venture with a local partner to carry out projects • Multiple Joint Ventures Joint ventures with different local partners on project-to-project basis • Investment through creation of Capital Fund Facilitating the local developers through funding their ventures
  26. 26. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Investment Models Private Equity/Real Estate Funds • The investors pick up equity stake in unlisted real estate firms and collaborate in business plans • Lowers the transaction costs and provides an easier exit route Joint Venture • Long term partnerships or project- specific • Mitigates the risk of entering the new market Business & Investment Models for FDI Source: E&Y Analysis
  27. 27. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Business & Investment Models for FDI Wholly Owned Subsidiary A relatively less preferred arrangement, few overseas developers are developing projects on a stand-alone basis Public - Private Partnership Government takes a proactive role and collaborates with foreign developers
  28. 28. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Major Foreign Developers in India • Real estate FDI inflow up nearly five-fold in 2008. Housing and Real Estate Service Sector Software and Hardware Telecome constructio n activities Automobile Power Petroleum and Natural Gas 2006-07 2121 21047 11786 2155 4424 1254 713 401 2007-08 8749 26589 5623 5103 6983 2697 3857 5729 0 5000 10000 15000 20000 25000 30000 AmountinUS$Millions FDI Inflow
  29. 29. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma INVESTOR COUNTRY PROJECT LOCATION Emmar Group Dubai Hyderabad Kontur Bintang /Westport Malaysia Gurgaon Singapore Housing Board Singapore Hyderabad/Chennai Keppel Land Singapore Bangalore Salim Group Indonesia Kolkata Ascendas Singapore Hyderabad Lehman brothers US Mumbai Lee Kim Tah holdings Singapore Chennai/Mumbai Major Foreign Developers in India
  30. 30. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma FDI Experience in Indian Real Estate
  31. 31. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma FDI Experience in Indian Real Estate FDI contributing to an organized Indian real estate • To become more organized sector • Fastest growing economy 0 171 2121 8749 1510 696 667 4424 6989 895 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 2004-05 2005-06 2006-07 2007-08 till April-2008 Real Estate Construction Activities US$ in million Source: RBI & Department of Industrial Policy and Promotion (DIPP)
  32. 32. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma FDI in real estate on the high growth path Growing at the rate of 30% p.a (Source: ASSOCHAM) Share of foreign investments will be US$ 25-28 billion by 2010.(Source: ASSOCHAM) FDI Experience in Indian Real Estate Source: Industry sources, E&Y Research 4.50% 10.60% 16.00% 26.50% 38.50% 47.60% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Share of real estate in FDI
  33. 33. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma FDI Experience in Indian Real Estate • Majority of the direct investment is from West Asia with overall commitment of US$ 9.7 billion from Dubai based developers • Further, investor from USA and Europe have shown keen interest with the launch of several RE funds Source: Industry sources, E&Y Research 59% 25% 10% 2% 4% Dubai Indonesia Singapore Malaysia Others Major Countries investing in India
  34. 34. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Most Preferred Cities for Investment I. Delhi II. Noida III. Gurgaon IV. Mumbai V. Pune VI. Kolkata VII. Hyderabad VIII. Bangalore IX. Chennai Many more…
  35. 35. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma I. Vizag II. Vadodara III. Dehradun IV. Indore V. Nashik VI. Guwahati VII. Chandigarh VIII. Nagpur Many more… Most Preferred Tier II Cities for Investment
  36. 36. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Advantages of FDI in Real Estate 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Bring Superior Technology Induce Healthy Competition Create More Professionalism Organize the Sector Ranking of Advantages of FDI Source: FICCI, India
  37. 37. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Advantages of FDI in Real Estate 0 0.5 1 1.5 2 2.5 3 3.5 Best Designs International Quality and Construction Tech. Make Available Huge Funds Edge of FDI over domestic investors Source: FICCI, India
  38. 38. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma The Impact of Macroeconomic Factors on Demand & Supply of Real Estate Economic Growth - Broad based GDP growth rate of 8-9 % per annum forecast - Demand driven by the growth in services sector Inflation - Has significant role in supply-demand of real estate - Continues to remain a major concern Money Supply - Growth is higher than RBI estimates - Liquidity is key to inflation and over-heating - Restricted availability to reduce options for builders/developers Interest Rates - Higher rates lead to higher cost of borrowing - Developers seeking other options, consumers are re-evaluating options - Investors are revaluing returns from the sector Credit Take-off - Easy availability of capital has led to growth in valuations - Concern over exposure of Banks towards the sector Economic Growth - Liberalization of FDI has led to an interest from new players - Valuation standards and greater transparency - Service tax on commercial rental to affect retail space Source: RBI, E&Y Analysis
  39. 39. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Market Trends and Outlook Parameters Characteristics/ Trends Outlook Market Concentration • Highly concentrated within top 6- 8 cities in the country • High concentration leading to significant property price rise in such cities • Growth to be driven primarily by Tier-II and Tier-III cities in the near future, across segments • Emergence of at least 10-15 new cities as growth centers • Increased development of planned cities Competition • High competition with 4-6 key national players and numerous regional players • Shift in competition towards product focus/ differentiation
  40. 40. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Parameters Characteristics/ Trends Outlook Financing • 30-40% annual increase in the home loan disbursements loan disbursals from Indian housing finance companies • Loan tenures have increased: 150 months (2001) to 173 months (2006) due to declining age of borrowers • Larger mortgage penetration • Introduction of globally accepted instruments/modes such as REITs Extent of Regulations • Moderate-No functional regulatory body • Region/Location specific building laws • 100% FDI is allowed under the automatic route • Stringent regulations expected to be introduced inline with international norms • Reforms in local development guidelines Market Trends and Outlook
  41. 41. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Key Opportunities Low–cost Housing • 72% of the total population is still rural areas • Current housing shortage of 22 million units at an estimated cost of US$ 88 billion • Increasing shift from rented to owned house • Nuclear families increasing the demand for housing Education Infrastructure • Huge market with untapped potential and low competition • Growing interest of leading global educational institutions in setting up institutions in India Logistics & Warehousing • Booming trade – Domestic & International • Agriculture Logistics – proper cold chain management and opportunity • Logistics for large infrastructure and Engineering Projects Healthcare Infrastructure • Healthcare BPO • Medical Infrastructure
  42. 42. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma • Nagarjuna Construction to invest up to Rs 500 cr in airports,Ports (July 17, 2008) • QVC Realty to launch first project in Bangalore soon (July 17, 2008) • Realty developer Bearys starts Montessori schools (July 17, 2008) • Emaar to infuse $150 m into specific projects (July 15, 2008) • Era Infra bags BHEL contract (July 15, 2008) • Foreign firms to pick up stake in Eldeco Infra for Rs 196 cr (July 15, 2008) • Maytas Properties to develop three IT SEZs (July 14, 2008) • Subhash Projects forays into urban infrastructure (July 13, 2008) • JP Morgan invests Rs 250 cr in BPTP (July 11, 2008) • New JMD for Parsvnath SEZ (July 11, 2008) • GMR Infrastructure (Rs 94.10): Buy (July 11, 2008) • Johnson Controls inks pact to manage Lodha projects (July 10, 2008) Real Estate & Construction Markets: 2008
  43. 43. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma • Marathon Group to develop Rs 1,800-cr SEZ in Navi Mumbai (June 29, 2008) • HT Media acquires stake in realty major Sunil Mantri (June 27, 2008) • Lanco contract for Hind Const (June 27, 2008) NCC bags Rs 333 cr worth orders (June 26, 2008) • Retail blueprint: Parsvnath to open 5-10 stores in 2008-09 (June 21, 2008) • Maytas-led consortium lays foundation for Shimoga airport (June 21, 2008) • Emaar MGF, Leighton venture to focus on Palm Springs project (June 20, 2008) • Suncity in talks with PE firms to raise Rs 350 cr for IT SEZ project (June 18, 2008) • Mantri Developers to re-enter Pune with realty projects (June 11, 2008) • Punj Lloyd inks pact with Singapore firm (June 06, 2008) • Nagarjuna Const bags 4 orders (June 04, 2008) • K Raheja joins hands with Servcorp (June 03, 2008) Real Estate & Construction Markets: 2008 Source : Business Line
  44. 44. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Road Ahead….
  45. 45. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Road Ahead…. • Negative Impact on the credit profiles of Real Estate companies. • Weeding out weaker entities, thereby increasing the relative strength of larger companies. • Liquidity risks remain a key challenge across the board. • Materially high rates of interest end up refinancing by small players. • Monetization of stakes by attracting PE would remain a key for managing overall funding and liquidity requirement. • Liquidity pressure for project execution and general slowdown in property sales. • Reducing list price for enhancing demand and to avoid risk of liquidity pressure. • Higher construction cost could also impact margins. • Large players with an attractive portfolio of ongoing development and an established track record will enjoy access to loan market and also attract capital through PE route. • Finally, Short-term outlook is Negative.
  46. 46. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Listener Questions Answers
  47. 47. Batch-XIII (B) Gaurav, Kishore & Shravan Macro Economics Dr Gulnar Sharma Thank You.

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