Real estate is Property consisting of land and the
buildings on it, along with its natural resources such as crops,
minerals, or water.
Immovable property of this nature more generally buildings
and housing .
The business of real estate including of buying, selling, or
renting land, buildings or housing.
Real estate pricing deals with the valuation
of real estate and all the standard methods of
determining the price of fixed assets apply.
According to NBH residential index, the prices have shown a
declining trend in 22 out of 26 cities in the April-June 2013 Qtr
compared to the January-March quarter.
Real estate prices have softened in major cities like Delhi,
Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and Pune.
Real estate in India was
Lack of uniformity in
local laws and their
Non availability of bank
financing, high interest
rates, and transfer taxes
Lack of transparency in
Greater organization and
Greater availability of financing
for real estate developers
Permitting foreign investment
Heightened consumer expectations
influenced by higher disposable
Residential real estate development
Fragmented market with few large players
Demand of over 400,000 units in the seven major cites in 2013
Commercial real estate development
Few players with presence across India
Over 38.2 million sqft demand in 7 major cities in 2013
Retail real estate development
FDI in multi brand retail to boost demand
Fragmented market with few national players
Demand of around 15 million sqft in major cities
Special economic zones
589 SEZs have been approved by the government so far
Majority of SEZs are in the IT/Ites sector
Tourism and Hospitality industry
A competitive market with many players
Over 121000 hotel rooms in the country as of 2013
Residential Real Estate Development
By rising disposable incomes
Rapidly growth middle class
Low interest rates
Heightened customer expectations
The Indian real estate market size is expected to touch US
$180 billion by 2020
Foreign direct investment is the sector is expected to increase
to US $ 25 billion in next 10 years from present us $ 4 billion
Demand is expected to grow at a compound annual growth rate
(CAGR)Of 19 percent between 2013 to 2017
The housing sector contributes 5-6 % to the country’s gross
Middle class mentality –
The middle class people in India has a fear in their mind that
their money misuse by the developer & they may not get proper
valued properties from the promoter ends
Fall in economic growth –
Now a days the entire global economy is going through a crisis
and its impact a lot in Indian real estate market
Rise of the professional real estate investor –
The last 10 years have seen a growing number of middle
class Indians trying their hand at the property market.
Their speculative behavior is not unlike that of middle class
Americans who during the go-go years bought houses only
to flip them a couple of years later for a 15-20 % gain.
That came crashing down in early 2008
DLF group is a leading real estate developer in India since 1946.
DLF has over 220 million sq. ft. of existing development projects
and 574 million sq. ft. of planned projects.
DLF’s development projects across India span over 30 cities like
Gurgaon, Noida, New Delhi. Indore, Ahmadabad. Lucknow,
Mumbai, Pune, Goa. Kochi. Chennai. Bangalore.
Established in 1967. API today is dearly amongst the real estate
leaders of India.
Having established itself very strongly in the NCR region,
Ansal API is now focusing on ventures in cities like Faridabad.
Gnrgaon, Noida. and Ghaziabad. Meerut. Agra, Lucknow,
Developed and delivered more than 190 million sq ft
The company currently has a land reserve of about 9,335 acres.
The Company was founded in 1995
Today, this is Rs 10 billion valued company
Sobha has completed 47 residential projects, 13 commercial
and 166 contractual projects covering about 36 million sqft area in
18 cities across India.
The company currently has 21 ongoing residential projects
aggregating to 8.5 million sqft, while 424 million sqft of
contractual projects are under various stages of construction.
Rationalization of process :
Rationalization of the regulations in governance affecting real
For example, improved land records, rationalizing stamp duty
across states, simplifying urban development guidelines etc.
Focus from both public and private sector
Different models for foreign investment being evaluated.
SEZ Act, 2006 provides major Tax benefits,
Tax relief and Single window clearance and approval
Urban Infrastructure Development:
Focus on urban infrastructure
Urban Reform schemes
City Challenge Fund
Mega Cities Fund
NHB to introduce reverse mortgage
Senior citizens to receive monthly income against their property
They do no have to repay the loan
Regulations for mortgage guarantee companies
Guaranteeing mortgages on the behalf of the banks and finance
Direct Tax Impact
Reduction in tax burden due to increase in threshold limits on
individual tax slabs
No change in corporate income tax rates and surcharge.
100 per cent tax holiday for five years for hotels and convention
centres in World Heritage sites if they
start functioning before March 31, 2013.
100 per cent tax holiday for five years anywhere in
India if they start functioning before March 31, 2013.
No tax regime proposed for Real Estate Investment trusts.
Indirect Tax Impact
General rate of excise duty reduced from 16 per cent to 14 %
Excise duty revised on bulk cement from US$ 10 per tonne to
14 per cent of assessable value or US$ 9.8 per tonne, whichever is
No change in service tax rate
Seven new taxable services included in the service tax net
Decrease in customs duty rate on imports under
project import scheme from 7.5 per cent to five percent.
There is a shortage of 12 million housing units in urban areas
There is a scope for 400 township projects over the next five
years spread across 30 to 35 cities, each having a population of
Total project value dedicated to low and middle income
housing in the next seven years is estimated at USD 40
Instrumental such as mortgage-backed security(MBS)
Commercial and collateralized debt obligations(CDO)
are being use to make capital work more efficiently