Overview of Real Estate and basic terminologies Explanation of Shares comparison approach Real Estate Investment Management Regulatory structures used in Real Estate Industry Real Estate Methods of valuation Case Study covering methods of valuation Real Estate Private Equity Funds Future of Real Estate Summary
Commercial real estate sector is in boom inIndia. In the last fifteen years, post liberalizationof the economy, Indian real estate businesshas taken an upturn and is expected to growfrom the current USD 14 billion to a USD 102billion in the next 10 years.DFS, MFC
Growing MarketDemandGreaterAvailability ofInformation• Realization of largecommercial projects• IPOs by developers• Gradual organization of themarkets in the Tier I cities• Emergence of transparency andliquidity• Entry of international realestate consultancies• Governing legal frameworkrelaxed• Competitive pricingDFS, MFC
Booming economy; accelerated GDP to 8% p.a. India’s emergence as an attractive off-shoring destinationand availability of pool of highly skilled technicians andengineers ; Development of large captive units of majorplayers include GE, Prudential, HSBC, Bank ofAmerica, Standard Chartered and American Express Rise in disposable income and growing middleclass, increasing the demand for quality residential realestate and real estate as an investment option Entry of professional players equipped with expertise inreal estate development Relaxation of legal rulings and processes by the governingbodies encouraging investments in real estate Improvement in infrastructure facilitiesDFS, MFC
ABSTRACT OF TITLEA summary of the history of the legal title to a piece ofproperty; all changes in ownership, liens, mortgagesor any other matter that might affect the title. AGREEMENT OF SALE; OR PURCHASE AND SALEAGREEMENTA written agreement by which a buyer agrees topurchase and a seller agrees to sell according to termsset forth in that agreement. APPRAISALA procedure in which a qualified individual estimatesthe value of a piece of property.
ATTORNEY IN FACTOne who holds a power of attorney fromanother, allowing him to execute legal documents onbehalf of the grantor of power. CLOSINGThe final meeting at which the transfer of title ofproperty passes from the seller to the buyer. DEEDA legal document whereby title to real estate istransferred from one person to another.
EARNEST MONEYAdvance payment of part of the purchase price to bind acontract for property. ESCROWA procedure where a third party handles legaldocuments and funds on behalf of a seller, buyer, andlender.MORTGAGEAn instrument used to encumber land as security for adebt.
POINTSThe one-time fee charged by a lending institution formaking a loan expressed as a percentage of the finalamount of the loan. SECOND MORTGAGEFinancing real estate with a loan or loans that aresubordinate to the first mortgage. It usually calls for ahigher interest rate and a shorter repayment period. ZONINGProcedure that classifies real property for a number ofdifferent users:residential, commercial, industrial, etc., in accordancewith a land-use plan. Ordinances are enforced by a
The sales comparison approach (SCA) is one of thethree major groupings of valuation methods used inreal estate. This approach compares a subject propertyscharacteristics with those of comparable propertieswhich have recently sold in similar transactions. The process uses one of several techniques to adjustthe prices of the comparable transactions according tothe presence, absence, or degree of characteristicswhich influence value.
It determines the value of something as the sum of thevalue of the various components which contributeutility. For example, in the case of a single familyresidence, such attributes might be floorarea, views, distance to amenities, number ofbathrooms, lot size, age of the property and conditionof property. the most common SCA method used by estate agentsand real estate appraisers is the sales adjustment grid. It uses a small number of recently sold properties inthe immediate vicinity of the subject property toestimate the value of its attributes.
More advanced researchers and appraisers commonlyemploy statistical techniques based on multipleregression methods which generally compare a largernumber of more geographically dispersed propertytransactions to determine the significance andmagnitude of the impact of different attributes onproperty value. In more complex situations, such as litigation orcontaminated property appraisal, appraisers developSCA adjustments using widely accepted advancedtechniques, such as repeat sales models (to measurehouse price appreciation over time), surveyresearch, case studies or other statistically basedtechniques.
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It involves thepurchase, ownership, management, rental and/or saleof real estate for profit Improvement of realty property as part of a real estateinvestment strategy is generally considered to be asub-specialty of real estate investing called real estatedevelopment.
Real Estate is a asset with Limited Liquidity relative to other investments. Capital Intensive Highly Cash Flow dependentIf these factors are not well understood and managed bythe investor, real estate becomes a risky investment
Typical Sources of investment include following - Market listings (through a Multiple Listing Service orCommercial Information Exchange) Real estate agents and Real estate brokers Banks (such as bank real estate owned departments forREOs and short sales)
Government entities (such as Fannie Mae, FreddieMac and other government agencies) Public auction (foreclosure sales, estate sales, etc.) Private sales (off-market transactions for sale by ownerFor sale by owner) Real estate wholesalers and investors (flipping)
Equity DebtThings to notice about leverage : By decreasing equity requirements and increasingleverage, our return on investment (ROI) is increases. By leveraging there would be negative cash flow fromthe beginning.
A typical investment property generates cash flows toan investor in four general ways:1. Net Operating Income2. Tax Shelter Offset3. Equity build-up4. Capital Appreciation
Adverse possessionMitigate - Obtain a boundary survey from a licensed surveyor Overpayment at purchaseMitigate - Obtain third-party appraisals and performdiscounted cash flow analysis as part of the investment proforma, do not rely on capital appreciation as the primarysource of gain for the investment Cash shortfallMitigate - Maintain sufficient liquid or cash reserves to covercosts and debt service for a period of time
Market DeclineMitigation Strategy - Purchase properties based on aconservative approach that the market might decline andrental income may also decrease Fraudulent sale - Verify ownership, purchase title insurance Fire, flood, personal injury – Insurance Tenant destruction of property - Screen potential tenantscarefully, hire experienced property managers
The regulatory structure in real estate industry isfacilitated primarily by the Real Estate (Regulation &Development) Bill, 2011. Land Acquisition and Rehabilitation and ResettlementBill, which is currently under review, will alsocontribute to existing regulatory structure.
Primary objectives of the bill – To establish the Real Estate Regulatory Authorityfor regulation and planned development in the realestate sector. To ensure sale of immovable properties in anefficient and transparent manner. To protect the interest of consumers in the realestate sector and establish an Appellate Tribunal toadjudicate disputes and hear appeals from thedecisions.
Consists of a Chairperson and at least two whole timeMembers to be appointed by the Government on therecommendations of the Selection Committee. The Chairperson and Members hold office for a termnot exceeding three years. Government may, in consultation with theAuthority, appoint officers and employees for efficientdischarge of their functions under the generalsuperintendence of the Chairperson.
Primary objectives of The Real Estate RegulatoryAuthority – Protection of interest of the allottees. Encourage construction of environmentallysustainable and affordable housing and promotestandardization. To act as the nodal agency to co-ordinate all effortsof the Government regarding the development ofthe real estate sector.
Primary objectives of The Real Estate RegulatoryAuthority – To ensure compliance of the obligations cast uponthe promoters and the allottees under this Act andthe rules and regulations made there under. To make recommendations to the Government onmatters connected with the objects of this Act. To fix for each area under its jurisdiction thestandard charges through policy or guidelines, orregulations to be levied on the allottees by thepromoter.
Real Estate Appellate Tribunal, established by theCentral Government to adjudicate any disputebetween – Between a promoter and a allottee. Between a promoter and Authority. Between Government and the Authority. The Government or the Competent Authority or anyperson aggrieved by any decision of the Authority mayprefer an appeal to the Appellate Tribunal.
The Appellate Tribunal consists of - A full time Chairperson. Four full time Judicial Members as the CentralGovernment may notify. At-least four full time Technical or AdministrativeMembers. The Chairperson has powers of superintendence anddirection in the conduct of the affairs of AppellateTribunal and presides over the meetings of theAppellate Tribunal and exercises and dischargesadministrative powers and functions of the AppellateTribunal.
The Appellate Tribunal shall not be bound by theprocedure laid down by the Code of CivilProcedure, 1908 but shall be guided by the principlesof natural justice. Subject to the provisions of this Act, the AppellateTribunal shall have power to regulate its ownprocedure. The Appellate Tribunal shall also not be bound by therules of evidence contained in the Indian EvidenceAct, 1872.
Central Advisory Council is established by the CentralGovernment with the ex-officio Chairperson of theCentral Advisory Council being Minister to theGovernment of India in charge of the Ministry of theCentral Government dealing with Real Estate. The Central Advisory Council consists of not morethan ten members to represent the interests of realestate industry, consumers, constructionlabourers, non-governmental organizations andacademic and research bodies in the real estate sector.
The functions of the Central Advisory Councilshall be to advise the Central Government on – All matters concerning the implementation of thisAct. Major questions of policy as applicable to the realestate sector. Protection of consumer interest. To foster the growth and development of the realestate sector. Any other duty or function as may be assigned to itby the Central Government.
Real estate appraisal, property valuation or landvaluation is the process of valuing real property. The value usually sought is the propertys MarketValue. Appraisals are needed because comparedto, say, corporate stock, real estate transactions occurvery infrequently. Not only that, but every property is different from thenext, a factor that doesnt affect assets like corporatestock. Furthermore, all properties differ from each other intheir location - which is an important factor in theirvalue.
This product differentiation and lack of frequenttrading, unlike stocks, means that specialist qualifiedappraisers are needed to advise on the value of aproperty. The appraiser usually provides a written report on thisvalue to his or her client. These reports are used as the basis for mortgage loans,for settling estates and divorces, for tax matters, and soon.Real Estate Valuation (contd.)
There are several types and definitions of value sought by a realestate appraisal. Some of the most common are: Market value – The price at which an asset would trade in acompetitive Walrasian auction setting. Market value is usuallyinterchangeable with open market value or fair value. InternationalValuation Standards (IVS) define: Value-in-use, or use value – The net present value (NPV) of acash flow that an asset generates for a specific owner under aspecific use. Value-in-use is the value to one particular user, andmay be above or below the market value of a property.Market value - the estimated amount for which an asset or liabilityshould exchange on the valuation date between a willing buyer anda willing seller in an arms length transaction, after propermarketing and where the parties had each actedknowledgeably, prudently and without compulsion.
Investment value - is the value to one particular investor, andmay or may not be higher than the market value of a property.Differences between the investment value of an asset and itsmarket value provide the motivation for buyers or sellers to enterthe marketplace. International Valuation Standards (IVS) define: Insurable value - is the value of real property covered by aninsurance policy. Generally it does not include the site value. Liquidation value - may be analyzed as either a forcedliquidation or an orderly liquidation and is a commonly soughtstandard of value in bankruptcy proceedings. It assumes a sellerwho is compelled to sell after an exposure period which is less thanthe market-normal time-frame.Investment value - the value of an asset to the owner or aprospective owner for individual investment or operationalobjectives.
There can be differences between what the property isreally worth (Market Value) and what it cost to buy it(Price). A price paid might not represent that propertys marketvalue. Sometimes, special considerations may have beenpresent, such as a special relationship between the buyerand the seller where one party had control or significantinfluence over the other party. In other cases, the transaction may have been just one ofseveral properties sold or traded between two parties.
In such cases, the price paid for any particular piece isnt itsmarket value but rather its market price. At other times, a buyer may willingly pay a premiumprice, above the generally-accepted market value, if hissubjective valuation of the property (its investment valuefor him) was higher than the Market Value. The most common reason why the value can be differentthat the price paid, is that one of the two parties (buyer orthe seller) is uninformed as to what a propertys marketvalue is, but nevertheless agrees to buy or sell it at a certainprice which is too expensive, or too cheap. It is the obligation of a Real Property Appraiser to estimatethe true market value of specific real property and not itsmarket price.
There are three main methods for valuing a real estateproperty. Cost Method Comparable Sales Method Income Method
The Cost Approach estimates the replacement value of aproperty by analyzing the cost of its components, i.e. land andbuilding. Value is calculated by adding the market value of the land as ifvacant to the reconstruction cost of the building, minusdepreciation suffered over the years in comparison to a newbuilding. This approach has the most validity/reliability whenimprovements are new or near-new. For older/aged structures,the cost approach may not be relevant due to the greatersubjectivity involved in estimating accrued depreciation. The cost method is often used for valuation of industrialproperties that may have specialized equipment and do nothave any easily observed rental market.
Procedure: Estimate the value of the land as if vacant, bycomparing it to similar properties. Estimate the replacement cost of the building atpresent. Factors to be considered include sitepreparation, utilities, types of building improvements,and tenant improvements etc. Assess the depreciation that has occurred to thebuilding and deduct the figure from the replacementcost of the building. Add the estimated worth of the land, and the resultingfigure will be an indication of the value of theproperty.
Market value of land: Rs10,00,000Replacement cost of the building: Rs 20,00,000Depreciation: Rs 7,50,000Value of property = 10,00,000 + 20,00,000 -7,50,000 = Rs22,50,000
The "Comparable Sales Method" is sometimes called the"Inferred Analysis" method of property valuation. This method estimates the value of a house by comparing itto the prices of similar properties sold in similarlocations within a recent period of time.. The basic assumption is therefore that a property is worthwhat it will sell for, in the absence of undue stress and ifreasonable time is given. It is the most prevalent method in the residential propertymarket.
Procedure: The central task is to systematically assemble data oncomparable properties. Once the data has been obtained and collated the taskis to draw informed conclusions on the value of yourproperty. This method typically examines three or more likeproperties and adjusts their value based on similaritiesand differences among them.
Advantages: It is the most easy and straightforward method and hasbecome general practice in the residential housing market. It leads to an objective valuation being placed on theproperty. The answer is connected to the actual marketvalue as opposed to an individuals preferences. Disadvantages: Sometimes it might be difficult to locate enough similarproperty transactions to draw meaningful conclusions withregards to what the value should be. Market value and price might differ due to "unreasonable"actions by other actors. This technique makes no reference to intrinsic value.
The "Income Method" is also termedthe fundamental, or intrinsic method of propertyvaluation. In this method, the present worth of a property isestimated on the grounds of projected future net income(in rent, for example) and re-sale value. The method uses the discounted cash flow (DCF) model todetermine the present value of an investment.
Assume we are valuing three-bed room flat. The expected Resale value is Rs 1,80,00,000 in 10 years. The three-bedroom flat generating Rs 4,00,000 per year inrent costs Rs1,60,000 in expenses. So annual net income is Rs2,40,000. Let the discount rate be 8%. PV of resale value = Rs180,00,000 / (1 + 0.08)¹º = Rs 83,37,500. PV of net income = (Rs 2,40,000 / 1.08¹) + (Rs 2,40,000 /1.08²) + (Rs 2,40,000 / 1.08³) + … etc. … + (Rs 2,40,000 / 1.08¹º)= Rs 16,10,200. PV of flat = Rs 83,37,500 + Rs 16,10,200 = Rs 99,47,700.
Advantages: It focuses directly on the value of the property to theindividual concerned. Income analyses are very detailed and derive specificconclusions . Disadvantages: This method is more complex and less intuitive than theComparable Sales Method. This method ignores the actual market prices of property. The ultimate house price recommendation is highly sensitiveto the assumptions made.
We shall now consider THREE CASE STUDIES, eachbased on a specific REAL ESTATE VALUATIONMETHOD..
I bought a house few monthsback.. But I doubt whether Ipaid an appropriate price forit.. Can you tell me whether Istruck the right deal ?
1. “The property in this first case study is an actualinvestment opportunity that Bob purchased severalmonths ago. The house is located directly across the streetfrom a beautiful all sports Lake Orion. The property is notconsidered to be lakefront, but rather lake view. Whilehouses on the lakefront typically sell for $200 per squarefoot and up, lake-view houses sell for between $120 and$140 per square foot. The subject property falls into thesecond category, with a couple of exceptions, which is thereason Bob is interested in it to begin with. The house sitsdirectly across the street from the lake on a little more thanthree-fourths of an acre and happens to be the only parcelof land uniquely situated with buildable lot space andzoned residential multiple (RM). That means it is not asingle-family parcel, but rather a multifamily parcel thatwill accommodate more than one house or condominiumunit.
2. An additional bonus included in this deal is thatalong with the land and the house are two boat slips.The seller of the property happened to own 28 feet oflake frontage right across the street from the houseand this parcel is currently home to two boat slips anda motorized hoist, or boat lift.
3. Take a few minutes to examine Table 10.1, carefullystudying the property’s income as it flows through themodel. In this table, the property is analyzed using theseller’s original asking price of $370,000. Theworksheet you see is a proprietary model Bobdeveloped to quickly and easily analyze potentialrental house investment opportunities. 4. The first section of the model allows the user toenter information for comparable home sales(alsoknown as Comps). This information is needed to helpmake accurate projections of the estimated resalevalue of an investment property and can be easilyobtained by almost any local real estate sale agent.
5. Next in this section is a provision that allows users to makeadjustments to the sales price of the comps. This sectionprovides users with the ability to compare properties on anapples-to-apples basis, just as an appraiser would do. Forexample, if the subject property has a central air-conditioningsystem and the comparable sale property does not, the price ofthe comparable sale will need to be revised upward in theadjustments to price section. 6. This is exactly how real estate agents and appraisers derive themarket value of a house. They start with an average price persquare foot of several similar houses that have recently been soldand make adjustments to compensate for differences in value.The comp averages section simply takes an average of the threecomps’ sales prices to come up with an average sales price. Thisnumber is then divided by the average price per square foot. Theresult is a weighted average price per square foot.”
We will use COMPARABLESALES TECHNIQUE to findactual worth of Bob’s newhome..
Bob has managed tostrike a perfect deal. He has made a gain ofRs 6956 even in theWorst Case Scenario. Bob is very smart!!
Income Approach is a valuation method appraisers and realestate investors use to estimate the value of incomeproducing real estate. It is based upon the premise ofanticipation i.e., the expectation of future benefits.Overall CapitalizationThe market value of a property, V, is frequently estimated as:where NOI = net operating income for the subject property;R = capitalization rate--the rate used to convert the property’sflow of benefits (income, capital gain, tax benefits) to avalue today.V =NOIR
1. Estimate the potential annual gross income, thatis, the income that would accrue if all units wererented at their market value.2. Determine the effective gross income bydeducting an allowance for vacancy and collectionloss.3. Determine the annual net operating income bydeducting the annual expenses of operation.4. Apply the appropriate capitalization rate to theannual net income.
A rental property of ABC company is divided into 14 units ofrental @900 $ per month of similar property type. It experiences with vacancy and collection losses of 5 %. Operating expenses which include normal expense itemstypically paid by the landlord such as real propertytaxes, insurance, major maintenance, property management10% of EGI, and remodeling(3 Units annually @ $2400). Estimate the value of a income rental property.
Using Capitalization Rate and Estimated value can beestimated.Capitalization Rate = NOI /Sales priceNOI = Net Operating IncomeEstimated Market Value = NOI/Capitalization Rate
Cost Approach of RealEstate Valuationcase Study 3
The cost approach begins with thedetermination of site value. Sales ofvacant land with similar zoning, utility, andacquired for the same or similar use as thesubject property being appraised, areanalyzed.
Once site value has beendetermined, reproduction or replacementcosts of the improvements are estimatedas if the improvements were new. Theestimate is then further adjusted for allelements of accrued depreciationincluding physical depreciation, functionaland/or external obsolescence
The Building is 20 years old. But the effective age is 15years. Estimated Life expectancy of a similar building is 45years. The Estimated value of the site of building has beencalculated to be $ 814,000.
Current Price Costs of building improvements are asfollows:-1. Building Improvement @ $86/Sq. Ft (6937)2. Canopy @ $25/Sq. Ft (567)3. Other Improvements @ $32,000 Lump sumPhysically Curable Depreciation- $2,500Physically Uncured:-Item New Cost % Depreciated Amount Dep.Roof $ 25000 33% 8250Mechanical $ 20000 33% 6600Floor Cover $ 8000 50% 4000HVAC $ 48000 30% 14400
The Indian real estate sector has grown rapidly over thelast few years, with its stakeholder profile evolvingfrom locally-focused, privately-owned enterprises toincreasingly corporatized, professional organizationsfunded with public capital and having multiple marketand product strategies. As a result, Indian real estate has seen a considerableflow of capital in recent years, both from foreign anddomestic sources.
The developer community is adapting to therequirements of joint venture arrangements withinstitutional capital sources by providing improvedtransparency and higher professional standards. This fragmented nature of the developer communityprovides scope for Real Estate Private Equity (REPE)Funds to source off-market investment opportunitiesand strategic relationships .
An asset class consisting of equity and debtinvestments in property. Investments are made via private equity real estatefund which pools capital from private equity investors. These funds typically have a life span of five to sevenyears and not suitable for small retails investors asminimum ticket size in most of the PE funds is Rs 25lakhs.
The period includes a two-year investment periodwhere properties are acquired, followed by a 3-5 yearholding period where active asset management iscarried out. At the end of the whole period, the investors make anexit when the acquired properties are sold. Typical expenses include annual managementfees, one-time setup fees, and a performance-based fee(also known as carried interest).
Private EquityInvestorReal Estate PrivateEquity FundReal EstateProjects/PropertiesInvestmentsPartnership InterestsInvestmentsEquity/Debt Position
Considerations for investing in private equity realestate funds relative to other forms of investmentinclude: High returns associated with High Risk Substantial entry costs, and Illiquid Investments.
REPE fund investment is for those who can afford tohave their capital locked in for long periods of timeand who are able to risk losing significant amounts ofmoney. This is balanced by the potential benefits of annualreturns, which are often excess of 20% for successfulopportunistic funds.
If a private equity real estate firm cant find suitableinvestment opportunities, it will not draw on aninvestors commitment. Given the risks associated with private equity realestate investments, an investor can lose all of itsinvestment if the fund performs badly.
REPE funds has substantial entry costs with mostfunds requiring significant initial investment (usuallyupwards of $1,000,000) plus further investment for thefirst few years of the fund. Investors in private equity real estate fundstend, therefore, to be institutional investors or highnet worth individuals.
Mostly REPE funds are in the limited partnershipsstructure and therefore referred to as "illiquid"investments which should earn a premium overtraditional securities, such as stocks and bonds. Once invested, it is very difficult to gain access to yourmoney as it is locked-up in long-term investmentswhich can last for as long as twelve years. Distributions are made only as investments areconverted to cash; limited partners typically have noright to demand that sales be made.
The most common investment strategies employed bythe real estate private equity funds in India are : Core plus investing, Value added investing , and Opportunistic investing
This is a moderate risk/moderate return strategy. The fund will generally invest in core propertieshowever some of these properties will require someform of enhancement or value-added element.
This is a medium-to-high risk/medium-to-high returnstrategy. It will involve buying a property, improving it in someway, and selling it at an opportune time for a gain. Properties are considered value added when theyexhibit management or operational problems, requirephysical improvement, and/or suffer from capitalconstraints.
This is a high risk/high return strategy. The properties will require a high degree ofenhancement. This strategy may also involve investments indevelopment, raw land, and niche property sectors. Investments are tactical.
There were 89 active realty private equity funds inIndia between 2008 and 2011, according to VentureIntelligence, a research service focused on PE andmergers and acquisitions. Tata Realty and Infrastructure, Indiareit FundAdvisors, HDFC Real Estate Fund, ICICI Venture, ASKProperty Investment Advisors and Kotak Realty Fundare some of the funds through which you can invest indomestic and overseas properties.
It is expected that Indian realty market can improve in2013 due to the positive impacts of policy andregulatory environment. Real estate regulation bill, land acquisition bill andapproval of FDI in India are some of the factors thatwill increase demand of commercial and residentialproperty in the country..
Though the last year was not that good in terms of realestate market, there are positive expectations from thecurrent year. Rising construction cost and declining sales have leftnegative impacts on real estate market. Total revenue of top real estate companies came downby 4% in second quarter..
In FY12 commercial space absorption in top six citieswas nearly 36 million square feet, in FY13 there will be adrop of around 10-15% in office space absorption. Thiswill be the result of slowdown in the global anddomestic economy. Some of the hot destinations for commercial real estateinclude Gurgaon and Noida with an anticipated shareof more than 85% of office space transactions.
In Mumbai, localities that will see top multinationalswill include Bandra Kurla, while Nariman Point will seeminimal demand and lower rentals. Hyderabad and Bangalore will get office space demandmostly from IT industry, while in Chennai 70% sharewill be of secondary business districts and peripheralbusiness districts
Predicting that the sagging momentum will pick up forreal estate from the second half of 2013, AnujPuri, Chairman & Country Head, Jones LangLaSalle India, said,“The country’s economic environment will certainlyimprove in 2013, with a corresponding gain inmomentum for real estate. The most tangible benefitsof economic improvements on the Indian real estatespace will be seen in second half of 2013.”
According to Sanjay Dutt, Executive ManagingDirector – South Asia, Cushman & Wakefield,“For the Indian real estate sector, 2012 was a year ofcautious approach as stakeholders -developers, investors and occupiers began the year withan air of skepticism, a trait that continued through theyear. Rising inflation, rupee depreciation andincreasing cost of capital added to the woes thataffected demand as well as future supply dynamics ofreal estate in the country.
According to Ballbirsingh Khalsa, NationalDirector, office Industrial Agency, Knight FrankIndia,“With business sentiments getting improved, thedownward trend will change in FY14 and each quarterwill see a 9-10 million of absorption, with overallabsorption likely to surpass 40 million in FY14.”
We have tried to comprehensively cover the Real EstateMarket as an alternative investment in ourpresentation.The group had divided the topics among themselves andhave tried hard enough to explain the complexitiesinvolved in this sector.Hope it was insightful !!!!
www.google.com www.investopedia.com http://joneslanglasalle.co.in/ http://cushwake.com/ www.eurekahedge.com/Database Real Estate Valuation by ICAI www.makaan.com/Real-Estate