present status,future expectations and swot analysis of real estate industry in india

1. SWOT ANALYSIS OF REAL-
ESTATE INDUSTRY IN INDIA
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PRESENTED TO-
Prof. Vinita Srivastava
PRESENTED BY-
Vicky Nishad
Sec-B,PGDM(2013-15)

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SHORT INTRODUCTION TO INDIAN REAL ESTATE INDUSTRY
•The Indian real estate sector has come a long way and is
today one of the fastest growing markets in the world. It
comprises four sub-sectors – housing, retail, hospitality, and
commercial. While housing contributes to five–six percent of
India’s gross domestic product (GDP), the remaining three
sub-sectors are also increasing at a fast pace. The total realty
market in the country is expected to touch US$ 180 billion by
202O.
•. It is currently the fourth largest sector in the country in
terms of FDI inflows.

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•Total investment by private equity (PE) funds in the real estate sector from
January–March 2014 was approximately Rs 28 billion (US$ 465.19 million).
•This is a substantial increase of 28 per cent compared to the previous quarter and
close to 2.5 times the investments during January–March 2013.
•contributes about 5 per cent to India’s GDP.
CONT.

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OBJECTIVES OF THE STUDY
•To study the internal strengths and weaknesses of Indian Real estate industry
•To Find the opportunities and threats of the industry.
• To Explore the current status.
•To determine the future expectations from the industry.

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MARKET SIZE AND FUTURE EXPECTATIONS
•The market size of the Indian real estate sector stood at US$
55.6 billion in 2010–11 and is expected to touch US$ 180 billion
by 2020
•The market size of real estate in India is expected to increase at
a CAGR of 11.2 per cent during FY2008 – 2020.
•New launches in the residential segment during the first quarter
of 2014 has increased by 43 per cent at 55,000 units across
seven major cities.

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Demand analysis of top 7 cities (‘000 units) 2010-14

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The housing and real estate sector is the biggest beneficiary of the
budget.
• The budget announced multiple measures like development of 100
smart cities, foreign direct investment in realty – especially in
low-cost housing, tax concessions for Real Estate Investment
Trusts (REITs), increase in allocation for the National Housing
Bank, and allowing slum development as one of the activities under
Corporate Social Responsibility.
• These will directly affect the real estate and construction sector
positively.
RESULTS
In addition, higher tax-exemption on
home loan interest could also help
increase demand for houses.
• These are much-required measures to
the sector, which has been affected by
poor demand and high costs
www.kotaksecurities.com
BUDGET 2014-15 IMPACT

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TOP PLAYERS IN THE INDUSTRY
•1987 by Mr Rohtas Goel. In 1989
•Net sales at Rs 342 crore (US$ 56.90 million) for third
quarter of FY14
•1958 by Shri Jaiprakash Gaur
•constructed the 165-km-long, 6-lane Yamuna
Expressway project from Noida to Agra.
•Third largest cement producer.
•1988 in the (NCR) by Mr RK Arora.
• 75 million square feet under construction

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•1972 by a group of technocrats
Profit after tax of Rs 2,095.68 million (US$ 34.46
million) in FY 13
•Area delivered – over 3 million square feet in FY
13
•1st real estate to be part of the National Stock
Exchange's NIFTY 50 Index
•1946 by Chaudhary Raghvendra Singh
•revenues of US$ 1.4 billion (FY13)
• Market capitalisation of US$ 7.2 billion
•Developed 3,000 acre DLF City in Gurgaon
Web- http://www.ibef.org

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SWOT ANALYSIS
STRENGTHS
• domestic demand and the huge housing shortage.
•Private sector housing boom and commercial
building demands.
•Low cost well- educated and skilled labour force is
now widely available across the country.
•Sufficient availability of raw material and natural
resources in the country is supportive for the industry
http://www.indianrealtynews.com

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WEAKNESSES
•LACK OF REGULATIONS
•HIGH AMOUNT OF MONEY NEED TO BE INVESTED WHICH LEAD
TO HIGH LEVEL RISK.
•PURCHASE AND MAINTENANCE EXPENSES OF CONSTRUCTION
EQUIPMENT ARE HIGH.
•ABSENCE OF SALES/MARKETING EXPERTISE.

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OPPORTUNITIES
•EXPANSION IN TIER II CITIES
Along with metros smaller towns and cities are also expanding
would mean more development and more construction
•OFFICE SPACE GROWTH
office space will continue to grow companies and firms in various sectors will need
quality work space this gives us immense growth potential.
•LACK OF DOMINANT COMPETITION
•TAX INCENTIVES FOR HOUSING INVESTMENTS
•SHORTAGE OF HOUSE IN URBAN AREAS.

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THREATS
•SKILLS SHORTAGE
The biggest challenge that the industry faces today is the fact that it faces an
acute shortage of skilled professionals. As per RICS’ recent report Real Estate
and Construction Professionals in India by 2020, India has nearly 50 million
people working in built environment, of which only 2 million are professionally
qualified, while the remaining are primarily construction workers.
•DELAYED APPROVAL OF PROJECTS
All the real estate projects have to pass through the government for approval
regarding FSI,Land clearances and various other clearances from different
government institution and in INDIA this process is very slow.

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