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A WHITE PAPER PRESENTATION ON FACTORS AFFECTING REAL ESTATE PRICE IN INDIA FACULTY GUIDE MRS. SAPNA MODI SUBMITED BY: PUNE...
OBJECTIVE <ul><li>The objective of this research  is to find out the relationship between price and demand in real estate ...
OVERVIEW <ul><li>IT boom in Bangalore </li></ul><ul><li>Technical hub </li></ul><ul><li>60% of all software that India exp...
RESIDENTIAL <ul><li>Eastern belt (airport road, brooke field, whitefield, sarjapur road) </li></ul><ul><li>Southern belt (...
PRICES <ul><li>Ranges from 2900/sq. ft. to 6400/sq. ft. 1 st  half of 2006 </li></ul><ul><li>In central region prices were...
COMMERCIAL <ul><li>Office space is available 28 ml. sq. ft. in which 38% is in class A & B </li></ul><ul><li>MG road is pr...
PRICES <ul><li>In whitefield/airport road in 1 st  half of 2006 prices wee 3500/sq. ft. which increase to 4600/sq. ft. in ...
LITERATURE <ul><li>Godrej properties launches residential projects in the name of woodsman estate-INR news (sep-04-2007) <...
RESEARCH DESIGN <ul><li>Hypothesis </li></ul><ul><li>H0: Real estate development reflects the growth of the city </li></ul...
<ul><li>SCOPE </li></ul><ul><li>1. Beneficial to realtors and builders in analyzing the factors for development and new co...
LIMITATION <ul><li>1. This research is restricted to Bangalore city only </li></ul><ul><li>2. This research is based on on...
TENTATIVE CONCLUSION <ul><li>City is expected to witness vigorous leasing activity in current year </li></ul><ul><li>CBD r...
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  1. 1. A WHITE PAPER PRESENTATION ON FACTORS AFFECTING REAL ESTATE PRICE IN INDIA FACULTY GUIDE MRS. SAPNA MODI SUBMITED BY: PUNEET SONI ROLL:55
  2. 2. OBJECTIVE <ul><li>The objective of this research is to find out the relationship between price and demand in real estate sector </li></ul><ul><li>To check whether real estate reflects the economic growth of the city </li></ul><ul><li>To check what are the other factors which affect price in real estate. </li></ul>
  3. 3. OVERVIEW <ul><li>IT boom in Bangalore </li></ul><ul><li>Technical hub </li></ul><ul><li>60% of all software that India exports </li></ul><ul><li>More than 1500 software company </li></ul><ul><li>Density more than 29000/sq.km </li></ul>
  4. 4. RESIDENTIAL <ul><li>Eastern belt (airport road, brooke field, whitefield, sarjapur road) </li></ul><ul><li>Southern belt (jayanagar, jp nagar, koramangla, hosur road) </li></ul><ul><li>North western (bellary road , malleswaram, sadashivnagar) </li></ul><ul><li>Residential formats (high end villas, row housing, township, apartment complex) </li></ul>
  5. 5. PRICES <ul><li>Ranges from 2900/sq. ft. to 6400/sq. ft. 1 st half of 2006 </li></ul><ul><li>In central region prices were 5000/sq. ft. increased to 6800/sq. ft. in 2 nd half in 2007 </li></ul><ul><li>In kormangla 4200/sq. ft. in 2 nd half of 2006 to 4800/sq. ft. in 1 st quarter of 2007 </li></ul><ul><li>Places like jayanagar from 3800/sq. ft. in 2 nd half of 2006 to 5300/sq. ft. in 1 st quarter of 2007 </li></ul><ul><li>Quality development by Total env. , sobha, HM construction) </li></ul><ul><li>Demand is 25.3 ml. sq. ft. while supply is 22 ml. </li></ul><ul><li>Residential price moving up since 1999 to 2005 with an increase of 36% </li></ul>
  6. 6. COMMERCIAL <ul><li>Office space is available 28 ml. sq. ft. in which 38% is in class A & B </li></ul><ul><li>MG road is prime CBD in city </li></ul><ul><li>Secondary BD is hosur road, whitefield and airport road </li></ul><ul><li>New locations for CBD is ring road </li></ul><ul><li>Demand is 7 ml. sq. ft. supply 6.5 ml. sq. ft. </li></ul><ul><li>Vacancy level fallen 5% in 2006-07 </li></ul>
  7. 7. PRICES <ul><li>In whitefield/airport road in 1 st half of 2006 prices wee 3500/sq. ft. which increase to 4600/sq. ft. in 2 nd half of 2007 </li></ul><ul><li>In MG road 5300/sq.ft. in 2006 to 7200/sq. ft. in 2007 </li></ul><ul><li>Shortage of space lead to increase in rentals in 2004-05 </li></ul><ul><li>Top rent rose to 10% in prime CBD </li></ul>
  8. 8. LITERATURE <ul><li>Godrej properties launches residential projects in the name of woodsman estate-INR news (sep-04-2007) </li></ul><ul><li>Regularization of unauthorized developments & construction in Karnataka-INR news (sep-13-07) </li></ul><ul><li>Demand for office space grows in Bangalore-Business standard(APR-22-07) </li></ul><ul><li>Office absorption in Bangalore surpass previous record-Economic Times(DEC-20-06) </li></ul>
  9. 9. RESEARCH DESIGN <ul><li>Hypothesis </li></ul><ul><li>H0: Real estate development reflects the growth of the city </li></ul><ul><li>H0: Price directly proportional to demand in real estate sector </li></ul><ul><li>H0: Supply constraint lead to hike in price in real estate sector </li></ul><ul><li>METHODOLOGY </li></ul><ul><li>Research type: Descriptive </li></ul><ul><li>Data collected: secondary </li></ul>
  10. 10. <ul><li>SCOPE </li></ul><ul><li>1. Beneficial to realtors and builders in analyzing the factors for development and new construction in residential and commercial segments in Bangalore </li></ul><ul><li>2. scope of this research is also for individual for accessing the right place to invest </li></ul><ul><li>3. This research revealed the factors leads to hike in price in real sector in Bangalore </li></ul>
  11. 11. LIMITATION <ul><li>1. This research is restricted to Bangalore city only </li></ul><ul><li>2. This research is based on only secondary data </li></ul><ul><li>3. This research is restricted to residential and commercial segments. </li></ul>
  12. 12. TENTATIVE CONCLUSION <ul><li>City is expected to witness vigorous leasing activity in current year </li></ul><ul><li>CBD rentals are likely to move up by 5% due to supply lag </li></ul><ul><li>Rentals are likely to move up by 10% for commercial for excess demand </li></ul><ul><li>IT/ITES companies will continue to dominate for commercial space due to new demand for office space </li></ul><ul><li>City is likely to see new developments due to new entrants of IT/ITES </li></ul>

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