The document discusses demand and supply factors that affect real estate prices in Chennai, India. It explains:
1) The law of demand and supply - as price increases, demand decreases and supply increases. Real estate demand depends on factors like income, price, availability of credit, and preferences.
2) Supply of real estate depends on price, availability of land, builders, credit access, and labor. The supply curve slopes upward as quantity supplied increases with price.
3) Major demand factors that can increase real estate prices include location, amenities, infrastructure, commercial development, income, land availability, affordability, property structure, and customization. Supply factors like limited available properties can also increase prices.
The document provides an overview of land use and the compatibility of alternative land uses. It discusses concepts related to the supply and demand of land, including derived demand, price elasticity, land rent theories, and Von Thunen's location theory of land use. Specifically, it explains that land markets work in cycles responding to various economic and social factors. The price of land is determined by the interaction of supply and demand forces. Demand for land is derived from its potential uses. Land supply is relatively inelastic due to land being a finite resource.
This document discusses real estate and land valuation from an economic perspective. It begins by defining land and real estate, then covers classical and neoclassical economic theories related to land. The key principles of land economics are discussed, including supply and demand, anticipation, balance, conformity, and substitution. External factors that can influence land value are also addressed.
Premiumessays.net is an academic paper writing services provider specializing in essay writing. However we handle other academic papers because we have the writers academically qualified and experienced in handling them.Our major goal is to help you achieve your academic goals. We are commited to helping you get top grades in your academic papers.We desire to help you come up with great essays that meet your lecturer's expectations.
This document provides an overview of an upcoming webinar on decoding the Unified Development Control and Promotion Regulations (UDCPR). It includes an index of chapters that will be covered, with the name of the presenter for each chapter. The chapters include administration, development permission processes, land use classification, general land development requirements, building requirements, parking requirements, and special provisions. Definitions that will be important for understanding the content are also provided. The webinar aims to explain the provisions and requirements of the new UDCPR.
Planning Legislation in India (Town Planning)S.P. Sharma
The document discusses various town planning legislation in India, highlighting their importance and key aspects. It covers:
1) The Sanitary Commission of 1864 which was formed to oversee sanitation and public health in cities and address issues like epidemics.
2) The Bombay Improvement Act of 1898 which established improvement trusts to undertake slum removal and sanitation works.
3) The Bombay Town Planning Act of 1915 which was India's first town planning law conferring powers on local authorities to control future growth and prevent slums.
4) The Model Town and Country Planning Act of 1960 which provided a framework for state legislation on planning authorities, master plans, and land use regulation.
The document discusses several key issues related to affordable housing:
1) Affordable housing shortages negatively impact millions of Americans who spend over 30% of their income on housing costs.
2) Factors like housing quality, location, cost, and sustainability must be considered to ensure housing remains affordable over decades.
3) A lack of affordable housing can negatively impact public health and children's development through increased stress and frequent moving.
The document discusses India's Pradhan Mantri Awas Yojana (PMAY) affordable housing program. It is being implemented in 3 phases from 2015-2022 to provide housing to the urban poor. Affordable housing is defined as housing that costs 30% or less of a household's income. Various policies and programs to promote affordable housing in India are discussed, including issues around housing shortage, rising slum populations, and the high costs associated with providing housing for all.
The bid rent theory proposes that the price of land decreases as distance from the central business district (CBD) increases. This is because retail establishments are willing to pay more to locate closer to the CBD to maximize profits from higher customer concentration. The commercial sector bids highest for CBD land, while the industrial sector requires more space and bids less. Residential bidding is also lower farther from the CBD as residents are less willing to pay high land costs far from the center. However, the theory does not account for all urban planning and transportation factors.
The document provides an overview of land use and the compatibility of alternative land uses. It discusses concepts related to the supply and demand of land, including derived demand, price elasticity, land rent theories, and Von Thunen's location theory of land use. Specifically, it explains that land markets work in cycles responding to various economic and social factors. The price of land is determined by the interaction of supply and demand forces. Demand for land is derived from its potential uses. Land supply is relatively inelastic due to land being a finite resource.
This document discusses real estate and land valuation from an economic perspective. It begins by defining land and real estate, then covers classical and neoclassical economic theories related to land. The key principles of land economics are discussed, including supply and demand, anticipation, balance, conformity, and substitution. External factors that can influence land value are also addressed.
Premiumessays.net is an academic paper writing services provider specializing in essay writing. However we handle other academic papers because we have the writers academically qualified and experienced in handling them.Our major goal is to help you achieve your academic goals. We are commited to helping you get top grades in your academic papers.We desire to help you come up with great essays that meet your lecturer's expectations.
This document provides an overview of an upcoming webinar on decoding the Unified Development Control and Promotion Regulations (UDCPR). It includes an index of chapters that will be covered, with the name of the presenter for each chapter. The chapters include administration, development permission processes, land use classification, general land development requirements, building requirements, parking requirements, and special provisions. Definitions that will be important for understanding the content are also provided. The webinar aims to explain the provisions and requirements of the new UDCPR.
Planning Legislation in India (Town Planning)S.P. Sharma
The document discusses various town planning legislation in India, highlighting their importance and key aspects. It covers:
1) The Sanitary Commission of 1864 which was formed to oversee sanitation and public health in cities and address issues like epidemics.
2) The Bombay Improvement Act of 1898 which established improvement trusts to undertake slum removal and sanitation works.
3) The Bombay Town Planning Act of 1915 which was India's first town planning law conferring powers on local authorities to control future growth and prevent slums.
4) The Model Town and Country Planning Act of 1960 which provided a framework for state legislation on planning authorities, master plans, and land use regulation.
The document discusses several key issues related to affordable housing:
1) Affordable housing shortages negatively impact millions of Americans who spend over 30% of their income on housing costs.
2) Factors like housing quality, location, cost, and sustainability must be considered to ensure housing remains affordable over decades.
3) A lack of affordable housing can negatively impact public health and children's development through increased stress and frequent moving.
The document discusses India's Pradhan Mantri Awas Yojana (PMAY) affordable housing program. It is being implemented in 3 phases from 2015-2022 to provide housing to the urban poor. Affordable housing is defined as housing that costs 30% or less of a household's income. Various policies and programs to promote affordable housing in India are discussed, including issues around housing shortage, rising slum populations, and the high costs associated with providing housing for all.
The bid rent theory proposes that the price of land decreases as distance from the central business district (CBD) increases. This is because retail establishments are willing to pay more to locate closer to the CBD to maximize profits from higher customer concentration. The commercial sector bids highest for CBD land, while the industrial sector requires more space and bids less. Residential bidding is also lower farther from the CBD as residents are less willing to pay high land costs far from the center. However, the theory does not account for all urban planning and transportation factors.
Evolution of planning legislation in india Parth Sadaria
The document discusses the evolution of planning legislation and practice in India from ancient times to the present. It outlines the development of various Town Planning and Improvement Acts from the late 19th/early 20th century under British rule through the enactment of model Town and Country Planning Acts in the 1960s. It also summarizes the key features and objectives of India's eight 5-Year Plans from 1951-1997, including priorities around industrialization, agriculture, poverty reduction, and social development.
Land Pooling Policy smart step of DDA and Private builders to develop a high class Smart City in Delhi. Get Complete terms of Land Pooling Policy at Comparecasa.
This document discusses bid rent theory in housing and its key assumptions. It introduces the concept of a bid rent curve showing what housing producers are willing to pay for land in different locations based mainly on commuting costs. It describes how factor substitution can make the bid rent curve steeper. It also discusses how a linear housing price curve can become convex when accounting for consumer substitution of housing space. Finally, it relaxes some of the initial assumptions to provide a more realistic analysis of factors influencing housing prices and density within a city.
This document summarizes a graduate report presentation on affordable housing in India. It defines affordable housing according to various organizations and provides statistics on India's growing urban population and resulting housing shortage. In particular, it notes that the urban housing shortage at the end of the 10th five-year plan was estimated at 24.71 million households. It also discusses factors affecting the supply and demand of housing, critical issues in affordable housing like scarcity of land and rising costs, and the various central government policies and schemes aimed at addressing the shortage.
TDR - CASE STUDIES OF MUMBAI CHENNAI BANGALORE
TRANSFERABLE DEVELOPMENT RIGHTS
Transferable Development Rights or TDR can be considered as an important raw material in the real estate industry as it allows the developer to build over and above the permissible Floor Space Index (FSI) under the prevalent rules of the respective locations.
National housing & habitat policy priyankPriyank Jain
The document summarizes the salient features of India's National Housing and Habitat Policy. It discusses key points such as:
- The goal of the policy is to provide affordable housing for all, with a focus on urban poor. It promotes public-private partnerships and involvement of various stakeholders.
- Important initiatives include the Jawaharlal Nehru National Urban Renewal Mission, Interest Subsidy Scheme for Housing the Urban Poor, and Affordable Housing in Partnership program.
- The policy emphasizes security of tenure, basic services and entitlements for scheduled castes, tribes, backward classes and minorities within urban poor communities.
- Moving forward, it recommends boosting social housing programs and
The document outlines the agenda and objectives for a marketing presentation on a new affordable housing project called Casamagna Township located on the outskirts of Pune, India. The summary includes:
1) An overview of the project including its location, type of housing, amenities, and target price range.
2) A discussion of the Pune real estate market analysis which finds it is one of India's fastest growing cities with high demand for affordable flats from young professionals.
3) The objective to capture 15% market share and sell 100 homes by 2012 for the new project.
The document introduces the Delhi Master Plan 2021 and provides details about the plan. It discusses the vision, objectives, and zoning of Delhi. 15 zones are identified, including 9 urban zones and 6 rural zones. Each zone is planned to support a certain population and include various land uses, infrastructure, and amenities. The plan aims to guide sustainable development and improve quality of life in Delhi through its policies and guidelines.
Housing is a very important need in every modern economy. People require houses for
residential or business purposes. In the real estate business, the supply and demand for housing is
always fluctuating. There are a number of factors that are attributed to the rise and fall of the
supply and demand for housing. These factors affect the supply and demand for housing in any
region of the world.
- See more at: http://www.customwritingservice.org/blog/a-sample-essay-on-the-factors-affectingdemand-
and-supply-for-housing/
This document discusses Johann Heinrich von Thünen's agricultural land use theory and how it relates to urban rent and land use theory. Some key points:
- von Thünen's 1826 book proposed that agricultural land uses around cities conform to predictable patterns based on transport costs and demand for different crops.
- The concept of "bid rent" refers to the maximum rent a farmer can pay for a parcel of land growing a particular crop while breaking even.
- When graphed based on transport costs, bid rent lines predict concentric zones of different agricultural land uses around a city, with a negative exponential rent gradient overall.
- Urban land use theory similarly predicts zones of different land uses like residential
this presentation is about the problems in gurugram with the perspective of sustainability which arised due to some reasons. this also shows the zoning plan of the city.
presentation based on Land Acquisition act and Land pooling in India. PPT is helpful for Urban Planning Students. discussed various land pooling models in India.
Article tries to portray, definne, decipher and to bring out the status, pecularities, issues and roadblock in Rural Housing of India. Article also tries to define that rural housing remains different and distict from urban housing and has to be dealt on different footing in its planning , designing, construction, materials and technologies.. Rural housing remains simple, cost-effective, meeting individually and severally , multiple requirements of the rural setting. However, rural housing needs needs focussed attention of professionals looking at the local options and local materials/technologies. Rural housing offers enormous opportunities of innovations and experimenatation in housing sector,. based on the local knowledge, available wisdom, available materials and currently used technologies. Architects and Engineers need to redo their agenda to make value addition to rural housing which remains vital for Indian economy, living, nealth and hygiene besides tackeling the issue of global warming and increasing carbon footprints/minimising energy annd resource consumption..
The Urban and Regional Development Plans Formulation and Implementation (URDPFI) guidelines were updated in 2014 to accommodate changes in urban development since the original 1996 guidelines. The updated guidelines provide a framework for preparing spatial development plans at various levels from regional to local. It outlines approaches for sustainable planning, infrastructure planning, transportation planning, land use management, and other technical aspects of the planning process. The guidelines emphasize public participation, flexibility, and alignment of sectoral plans with overall master plans.
While the supply side constraints for low cost and affordable housing include lack of availability of land and finance at reasonable rates, the demand drivers include the growing
middle class and urbanisation. Real estate developers, private players in particular, have primarily targeted luxury, high-end and upper-mid housing segment owing to the higher returns that can be gained from such projects.
- Urbanization in India has increased rapidly, with the urban population growing at a CAGR of 2.8% between 2001-2011. This has led to a shortage of housing and overcrowding in urban areas.
- As of 2011, the estimated housing shortage in urban India was 24.71 million units, with 88% of the shortage for economically weaker sections and lower-income groups.
- Affordable housing is defined differently by various organizations but generally refers to housing that costs less than 5 times the annual income and has a monthly mortgage or rent payment of less than 30-40% of monthly income. There is still a large gap between the supply and demand of affordable housing in India.
This document discusses various approaches to providing affordable rental housing in India. It begins by defining different types of affordable housing such as ownership housing, social rented housing, and intermediate housing. It then discusses challenges around providing affordable housing given rapid urbanization and poverty levels in India. The document outlines several government initiatives and programs to promote affordable housing. It also examines issues around developing affordable housing and strategies to increase housing supply such as using government land banks and increasing floor space index. The document analyzes rental housing models and case studies from other countries and within India to provide affordable rental options.
This document provides an overview of housing and housing issues in the Indian context. It discusses key topics like the importance of housing, definitions related to housing, the magnitude of India's housing problem both quantitatively and qualitatively, factors affecting housing demand and supply, the relationship between housing and neighborhood/city planning, and India's national housing policy and role of housing agencies. The housing shortage in India is estimated to be around 31 million units as of 2001, with both rural and urban areas facing deficits. Affordability, access to basic amenities, and lack of quality construction are some of the major qualitative issues.
National Urban Housing and Habitat Policy-2007JIT KUMAR GUPTA
Presentation looks at the intent, content and scope of National Housing Policy 2007; Housing Finance Institutions, PMAY(U), in the context of housing for all in urban India
This document provides an overview of affordable housing in India. It discusses the growth of the Indian real estate industry and defines key terms like affordable housing. It also identifies several demand drivers for affordable housing in India like urbanization and rising income levels leading to a growing middle class. The document notes constraints on the supply of affordable housing like high land costs and lack of financing options for low-income groups. It distinguishes between low-cost and affordable housing and suggests that affordable housing requires basic amenities while low-cost focuses only on minimal housing.
About Demand and supply of real estate By Nino joseph MihilliNinoJosephMihilli12
The document discusses the laws of demand and supply as they relate to real estate. It provides definitions and explanations of key concepts like:
- The law of demand states that demand decreases with increasing price and increases with decreasing price (1)
- Supply increases with increasing price as suppliers seek to maximize profits (4)
- Demand and supply curves graphically depict the inverse relationship between price and quantity (3,5)
- Demand for real estate is affected by factors like location, amenities, income, availability of land, and more (8-10, 13)
- Supply is determined by price, availability of land, builders, credit access, and labor (4, 17)
- The relationship
This document discusses the potential for affordable housing in India. It notes that the real estate sector contributes significantly to India's GDP and job growth. While the housing boom from 2005-2008 increased home prices beyond what many could afford, the economic downturn highlighted the need for more affordable options. The document defines affordable housing based on a percentage of income rather than referring only to low-cost projects. It provides examples of potential affordable projects in Kolkata and estimates the size of the affordable housing market. However, it notes developers often locate such projects in distant suburbs without adequate infrastructure. The document calls for government support through subsidized land, improved transportation, and tax incentives to help overcome bottlenecks and facilitate more affordable housing development.
Evolution of planning legislation in india Parth Sadaria
The document discusses the evolution of planning legislation and practice in India from ancient times to the present. It outlines the development of various Town Planning and Improvement Acts from the late 19th/early 20th century under British rule through the enactment of model Town and Country Planning Acts in the 1960s. It also summarizes the key features and objectives of India's eight 5-Year Plans from 1951-1997, including priorities around industrialization, agriculture, poverty reduction, and social development.
Land Pooling Policy smart step of DDA and Private builders to develop a high class Smart City in Delhi. Get Complete terms of Land Pooling Policy at Comparecasa.
This document discusses bid rent theory in housing and its key assumptions. It introduces the concept of a bid rent curve showing what housing producers are willing to pay for land in different locations based mainly on commuting costs. It describes how factor substitution can make the bid rent curve steeper. It also discusses how a linear housing price curve can become convex when accounting for consumer substitution of housing space. Finally, it relaxes some of the initial assumptions to provide a more realistic analysis of factors influencing housing prices and density within a city.
This document summarizes a graduate report presentation on affordable housing in India. It defines affordable housing according to various organizations and provides statistics on India's growing urban population and resulting housing shortage. In particular, it notes that the urban housing shortage at the end of the 10th five-year plan was estimated at 24.71 million households. It also discusses factors affecting the supply and demand of housing, critical issues in affordable housing like scarcity of land and rising costs, and the various central government policies and schemes aimed at addressing the shortage.
TDR - CASE STUDIES OF MUMBAI CHENNAI BANGALORE
TRANSFERABLE DEVELOPMENT RIGHTS
Transferable Development Rights or TDR can be considered as an important raw material in the real estate industry as it allows the developer to build over and above the permissible Floor Space Index (FSI) under the prevalent rules of the respective locations.
National housing & habitat policy priyankPriyank Jain
The document summarizes the salient features of India's National Housing and Habitat Policy. It discusses key points such as:
- The goal of the policy is to provide affordable housing for all, with a focus on urban poor. It promotes public-private partnerships and involvement of various stakeholders.
- Important initiatives include the Jawaharlal Nehru National Urban Renewal Mission, Interest Subsidy Scheme for Housing the Urban Poor, and Affordable Housing in Partnership program.
- The policy emphasizes security of tenure, basic services and entitlements for scheduled castes, tribes, backward classes and minorities within urban poor communities.
- Moving forward, it recommends boosting social housing programs and
The document outlines the agenda and objectives for a marketing presentation on a new affordable housing project called Casamagna Township located on the outskirts of Pune, India. The summary includes:
1) An overview of the project including its location, type of housing, amenities, and target price range.
2) A discussion of the Pune real estate market analysis which finds it is one of India's fastest growing cities with high demand for affordable flats from young professionals.
3) The objective to capture 15% market share and sell 100 homes by 2012 for the new project.
The document introduces the Delhi Master Plan 2021 and provides details about the plan. It discusses the vision, objectives, and zoning of Delhi. 15 zones are identified, including 9 urban zones and 6 rural zones. Each zone is planned to support a certain population and include various land uses, infrastructure, and amenities. The plan aims to guide sustainable development and improve quality of life in Delhi through its policies and guidelines.
Housing is a very important need in every modern economy. People require houses for
residential or business purposes. In the real estate business, the supply and demand for housing is
always fluctuating. There are a number of factors that are attributed to the rise and fall of the
supply and demand for housing. These factors affect the supply and demand for housing in any
region of the world.
- See more at: http://www.customwritingservice.org/blog/a-sample-essay-on-the-factors-affectingdemand-
and-supply-for-housing/
This document discusses Johann Heinrich von Thünen's agricultural land use theory and how it relates to urban rent and land use theory. Some key points:
- von Thünen's 1826 book proposed that agricultural land uses around cities conform to predictable patterns based on transport costs and demand for different crops.
- The concept of "bid rent" refers to the maximum rent a farmer can pay for a parcel of land growing a particular crop while breaking even.
- When graphed based on transport costs, bid rent lines predict concentric zones of different agricultural land uses around a city, with a negative exponential rent gradient overall.
- Urban land use theory similarly predicts zones of different land uses like residential
this presentation is about the problems in gurugram with the perspective of sustainability which arised due to some reasons. this also shows the zoning plan of the city.
presentation based on Land Acquisition act and Land pooling in India. PPT is helpful for Urban Planning Students. discussed various land pooling models in India.
Article tries to portray, definne, decipher and to bring out the status, pecularities, issues and roadblock in Rural Housing of India. Article also tries to define that rural housing remains different and distict from urban housing and has to be dealt on different footing in its planning , designing, construction, materials and technologies.. Rural housing remains simple, cost-effective, meeting individually and severally , multiple requirements of the rural setting. However, rural housing needs needs focussed attention of professionals looking at the local options and local materials/technologies. Rural housing offers enormous opportunities of innovations and experimenatation in housing sector,. based on the local knowledge, available wisdom, available materials and currently used technologies. Architects and Engineers need to redo their agenda to make value addition to rural housing which remains vital for Indian economy, living, nealth and hygiene besides tackeling the issue of global warming and increasing carbon footprints/minimising energy annd resource consumption..
The Urban and Regional Development Plans Formulation and Implementation (URDPFI) guidelines were updated in 2014 to accommodate changes in urban development since the original 1996 guidelines. The updated guidelines provide a framework for preparing spatial development plans at various levels from regional to local. It outlines approaches for sustainable planning, infrastructure planning, transportation planning, land use management, and other technical aspects of the planning process. The guidelines emphasize public participation, flexibility, and alignment of sectoral plans with overall master plans.
While the supply side constraints for low cost and affordable housing include lack of availability of land and finance at reasonable rates, the demand drivers include the growing
middle class and urbanisation. Real estate developers, private players in particular, have primarily targeted luxury, high-end and upper-mid housing segment owing to the higher returns that can be gained from such projects.
- Urbanization in India has increased rapidly, with the urban population growing at a CAGR of 2.8% between 2001-2011. This has led to a shortage of housing and overcrowding in urban areas.
- As of 2011, the estimated housing shortage in urban India was 24.71 million units, with 88% of the shortage for economically weaker sections and lower-income groups.
- Affordable housing is defined differently by various organizations but generally refers to housing that costs less than 5 times the annual income and has a monthly mortgage or rent payment of less than 30-40% of monthly income. There is still a large gap between the supply and demand of affordable housing in India.
This document discusses various approaches to providing affordable rental housing in India. It begins by defining different types of affordable housing such as ownership housing, social rented housing, and intermediate housing. It then discusses challenges around providing affordable housing given rapid urbanization and poverty levels in India. The document outlines several government initiatives and programs to promote affordable housing. It also examines issues around developing affordable housing and strategies to increase housing supply such as using government land banks and increasing floor space index. The document analyzes rental housing models and case studies from other countries and within India to provide affordable rental options.
This document provides an overview of housing and housing issues in the Indian context. It discusses key topics like the importance of housing, definitions related to housing, the magnitude of India's housing problem both quantitatively and qualitatively, factors affecting housing demand and supply, the relationship between housing and neighborhood/city planning, and India's national housing policy and role of housing agencies. The housing shortage in India is estimated to be around 31 million units as of 2001, with both rural and urban areas facing deficits. Affordability, access to basic amenities, and lack of quality construction are some of the major qualitative issues.
National Urban Housing and Habitat Policy-2007JIT KUMAR GUPTA
Presentation looks at the intent, content and scope of National Housing Policy 2007; Housing Finance Institutions, PMAY(U), in the context of housing for all in urban India
This document provides an overview of affordable housing in India. It discusses the growth of the Indian real estate industry and defines key terms like affordable housing. It also identifies several demand drivers for affordable housing in India like urbanization and rising income levels leading to a growing middle class. The document notes constraints on the supply of affordable housing like high land costs and lack of financing options for low-income groups. It distinguishes between low-cost and affordable housing and suggests that affordable housing requires basic amenities while low-cost focuses only on minimal housing.
About Demand and supply of real estate By Nino joseph MihilliNinoJosephMihilli12
The document discusses the laws of demand and supply as they relate to real estate. It provides definitions and explanations of key concepts like:
- The law of demand states that demand decreases with increasing price and increases with decreasing price (1)
- Supply increases with increasing price as suppliers seek to maximize profits (4)
- Demand and supply curves graphically depict the inverse relationship between price and quantity (3,5)
- Demand for real estate is affected by factors like location, amenities, income, availability of land, and more (8-10, 13)
- Supply is determined by price, availability of land, builders, credit access, and labor (4, 17)
- The relationship
This document discusses the potential for affordable housing in India. It notes that the real estate sector contributes significantly to India's GDP and job growth. While the housing boom from 2005-2008 increased home prices beyond what many could afford, the economic downturn highlighted the need for more affordable options. The document defines affordable housing based on a percentage of income rather than referring only to low-cost projects. It provides examples of potential affordable projects in Kolkata and estimates the size of the affordable housing market. However, it notes developers often locate such projects in distant suburbs without adequate infrastructure. The document calls for government support through subsidized land, improved transportation, and tax incentives to help overcome bottlenecks and facilitate more affordable housing development.
The document provides an analysis of the Indian real estate sector. It discusses the following key points:
1. The real estate sector in India is currently in the recovery phase of its cycle after slowing down due to the global financial crisis. Demand is expected to grow at 19% CAGR.
2. The residential segment accounts for 90-95% of the market, followed by commercial at 4-5% and retail at 1%. Growth is driven by factors like urbanization, consumerism, and policy reforms.
3. Application of Porter's 5 forces model finds that while competition and buyer bargaining power pose challenges, the threat of new entrants is currently relatively weak due to the economic environment.
This presentation was prepared for Larsen and Toubro's Outthink -2016 case study competition. The case was based on project finance, where participants were asked to perform a feasibility analysis of a real estate project.
The document discusses supply and demand fundamentals in real estate markets. It covers how equilibrium price is determined by the interaction of supply and demand curves. It then discusses how price movements occur when supply or demand changes, including examples from different commercial real estate space markets like office, retail, industrial, and residential. Market analysis examines the balance of supply and demand using metrics like vacancy rates, rents, construction levels, and absorption to understand current conditions and make projections.
This document provides an analysis of the Indian real estate sector. It begins with an overview of the real estate cycle and factors affecting it. It then analyzes the current scenario in India and the segments of residential, commercial, retail and hospitality real estate. It identifies the major players in the Indian market and discusses market performance. Global trends are also examined. Finally, Porter's 5 forces model is applied to determine the profitability of the sector. While threats are identified, the analysis concludes that recovery is underway and prospects remain bright given India's growth.
The National Property Index rose 1% in the Oct-Dec 2014 quarter. Seven of the 11 cities tracked posted a 1-3% rise in their City Index values, with Ahmedabad seeing the largest rise at 3%. Delhi and Mumbai saw a 1% drop. Demand for properties priced between Rs. 20-50 lakhs increased 3%. Active supply declined 2% nationally. Rental returns remained high in Bengaluru, Hyderabad, and Kolkata. Mumbai, Bengaluru, and Pune continued to be the most preferred investment destinations.
1) The document discusses financing real estate and housing in India, noting that HDFC is India's first specialized mortgage company established in 1977 and has approved loans of Rs. 914 billion.
2) It outlines factors driving the growth in housing demand such as rising incomes, low interest rates, and urbanization, but also notes there is a shortage of 19.4 million housing units in India.
3) The document advocates for policy measures to further develop the real estate market such as tax reforms, streamlining approvals processes, and establishing securitization to improve funding.
The document discusses the real estate market in India. It defines real estate and outlines its importance to the Indian economy, noting that it is the second largest employer and housing contributes 5-6% to GDP. Growth in the market has been driven by factors like nuclear families, urbanization, and rising incomes. Real estate developers play a key role by bridging construction capabilities and customer needs. The document also outlines the steps to build a real estate brand, including situation analysis, creating value through segmentation and marketing mix, capturing value through pricing strategies, and sustaining value through customer acquisition and retention. It concludes by discussing various sales channels and key risks and concerns in the industry.
This document summarizes an apartment association presentation on Houston apartment market trends. It discusses five categories of apartment properties in Harris County totaling over 591,000 units. Apartments are classified from Class A to E based on amenities, condition, and design. The document outlines adjustments being made to HCAD's 2010 income models based on declining rents, occupancies and increasing concessions. It also notes a decline in new apartment construction activity and increasing capitalization rates reflecting the difficult market. Overall, the Houston apartment market is expected to remain slow during the first two quarters of 2010 as the local economy recovers.
The document discusses the real estate market in India. It notes that the Indian real estate market has seen significant growth in recent years and continues to boom, with development across residential, commercial, and retail sectors. Major real estate companies going public and large investments from both domestic and foreign investors indicate the potential of the Indian property market. The realestateonline.in website provides a platform for buyers, sellers, and dealers of residential and commercial properties across major Indian cities.
This document discusses top residential investment destinations in India from 2013-2017. It outlines the methodology used to select these destinations, which involves picking top cities based on factors like population and business activity, then dividing cities into zones. Zones are analyzed based on current and projected employment growth in driver industries like IT/ITeS. Key destinations are then selected in each zone based on factors like infrastructure development, commute times, and potential price appreciation. The top destinations projected to outperform in terms of investor returns over the next 5 years are identified for various regions across India.
Despite rising multifamily construction starts, the current stock of rental units is struggling to meet demand in some areas. This problem is particularly acute for affordable and workforce housing. High construction costs driven by rising land and material prices are inhibiting new supply, especially of more affordable units. Most new multifamily projects consist of high-end apartments, exacerbating the shortage of affordable rentals. To make projects profitable given high costs, developers have focused on acquiring premium sites and pricing new units at the higher end of the market. This concentration of high-cost units in large cities further squeezes the supply of affordable housing.
Indian residential real_estate_consumer_sentiment_survey_report_h1-2019negisumeet
The survey found that Indian consumers have a renewed optimism in the real estate sector following benefits provided by the government in 2019, including tax cuts and interest rate reductions. 57% of survey respondents preferred to invest in real estate, up 4% from the previous survey. The stock market was the second most preferred investment option at 25%. Fixed deposits saw a decline in preference to 13% due to falling interest rates. Gold continued to decline in preference to just 5% of respondents. Kolkata respondents had the lowest real estate investment preference at 44%, while Bangalore had the highest at 68%.
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A b s t r a c t Current construction cost indices typically are derived by
applying national weights to local costs for materials and labor.
In this study, construction cost indices are developed that are
based on actual contractor tenders for projects. As such, they
incorporate full variation in factor proportions, as well as factor
costs, contractor overhead, and profit. Cost indices are produced
for two product types, office and multi-family residential, in six
different MSAs using F.W. Dodge project cost data from 1967
through the first half of 2004. Standard ‘‘hedonic’’ analysis is
applied to control for variation in project scale and features to
extract the true time trends in costs for each market. The findings
indicated that real construction costs generally have fallen
slightly over the last 35 years. In addition, no correlation is found
between costs and building activity. Causal (IV) analysis implies
that the construction industry is elastically supplied to local real
estate markets, with any ‘‘excess’’ profits going to land and
developer entrepreneurship. This is consistent with the traditional
‘‘urban land economics’’ literature.
This paper develops construction cost indices based upon the actual construction
tenders for a very large number of building projects over the 1967–2004 period.
Using these indices, two questions are examined. First, there has been much
discussion over why the appreciation of most commercial real estate over the 35
year period has been actually slightly less than inflation (Geltner and Miller, 2004).
The current paper finds that construction costs have behaved similarly during this
time—generally increasing slightly less than overall economic inflation. Real
estate markets are widely thought to be mean-reverting around replacement costs
and thus to the extent that replacement costs are based mainly on the construction
(as opposed to land) component—this paper provides an answer. The second
question is to explore if there is a tendency for construction costs to rise cyclically
during periods of major building activity. If this is the case, it could suggest that
the construction industry is less than elastically supplied to local real estate
markets. Whether this is due to inelasticity in the supply of materials and labor,
or the whether contractors and construction firms are able to extract short run
2 � W h e a t o n a n d S i m o n t o n
profits, cannot be distinguished. In either case, however, inelasticity would cast
some doubt on the time-honored axiom of modern urban economics that any
excess returns go to land or entrepreneurship (Clemhout, 1981; and Blackley,
1999).
The analysis is made possible by using the records from the FW Dodge company
covering 67,000 b ...
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2. LAW OF DEMAND
2
The law of demand states that the quantity demanded and the price of
a commodity are inversely related, other things remaining constant. It states that
demand decreases with increase in price and vice versa.
In economics, the law states that, all else being equal, as the price of product
increases, quantity demanded falls; likewise, as the price of a product decreases,
quantity demanded increases
There are various other factors that affect the demand for real estate
Based on these factors we can derive the equation for real estate
D = f {D, I, P, Cb, Cr, T, Ti, Ps}
D - demand for real estate
I – income of customers
P – price of housing
Cb – cost of borrowing
Cr – availability of credit
T – consumer’s preference
Ti – investor’s prefernece
Ps - price of substitutes and compliments
3. DEMAND CURVE
3
demand curve, shown in red and shifting to the right, demonstrating the inverse
relationship between price and quantity demanded (the curve slopes
downwards from left to right; higher prices reduce the quantity demanded).
4. LAW OF SUPPLY
4
Law of supply states that, all other factors being equal, as the price of a
good or service increases, the quantity of goods or services that suppliers offer
will increase, and vice versa
The law of supply says that as the price of an item goes up, suppliers will
attempt to maximize their profits by increasing the quantity offered for sale
However, in examining the forces determining the supply curve, we
need to analyze the factors upon which the supply of a good depends
Factors determining the supply of real estate can be stated in the form of a
supply function
S = f {P, A, B, Cr, L}
S- supply of real estate property
P- price of property
Availability of land
Efficient builders
Cr- easy accessibility of credit
L- skilled labours
5. SUPPLY CURVE
5
The chart above depicts the law of supply using a supply curve, which is
always upward sloping. A, B and C are points on the supply curve. Each point
on the curve reflects a direct correlation between quantity supplied (Q) and
price (P). So, at point A, the quantity supplied will be Q1 and the price will be
will be P1, and so on.
6. INTRODUCTION TO THE REAL
ESATE INDUSTRY
6
The Indian real estate sector is one of the fastest growing and globally recognised sectors
In India, Real estate sector is the second highest in employment generation
Contributes almost 5% to Indian GDP which is expected to be 6% in coming years
It comprises of four sub- sectors
Housing
Retail
Hospitality
Commercial
The real industry’s growth is linked to developments in the
• Hospitality
• Entertainment ( hotel, resorts, cinema theatre’s) industries,
• Economic services ( hospitals, schools)
• Information technology (IT) enabled services ( like call centres) etc
7. Contd...
• Rapid growth in retail, hospitality, infrastructure makes it most lucrative
investment area for next 5 to 10 years
• The advent of the IT sector along with the setting up of large manufacturing
units by multi-national companies (MNCs) has changed the dynamics of
Chennai real estate market
• Apart from generating thousands of new jobs for the local residents,
Chennai has been attracting a large pool of migrants into these sectors from
across the country
8. WHAT PROMPTS A PERSON TO
TRY HIS FORTUNE IN THE FIELD
OF REAL ESTATE SECTOR?
8
The first and foremost is that the real estate business is riskless
The second reason is growing Indian middle class with low propensity to consume
and botheration about the future
Thirdly, the ever growing housing needs filled by low interest
Last but not the least is investing in the sector `where everywhere else does can also
be cited as one of the important factors leading to heavy investment in this sector
9. FACTORS AFFECTING THE VALUATION
OF PROPERTY IN INDIA
9
Recent real estate statistics in India prove beyond doubt that property
valuations have taken a turn for the better
The real estate sector definitely is on the rise, with the growth thrust being
provided by important factors such as
Demographics
Interest rates
Location
The state of the economy
which affect the prices of property in the country
Correct insights in regards to the right time for purchase of property, price
escalations, recessions in the real estate market and other indicators, help in
making valuable purchase decisions
11. MAJOR DEMAND FACTORS THAT
AFFECTS THE PRICE
11
LOCATION
AMENITIES
INFRASTRUCTURE
COMMERCIAL REAL ESTATE
DISPOSABLE INCOME
AVAILABILITY OF LAND
AFFORDABILITY
STRUCTURE
CUSTOMIZATION
12. LOCATION
12
Buildings, real estate and properties, located in commercial and market areas, hold
higher value than their counterparts in the residential areas
It is common to find brokers quoting a higher price for buildings in well developed
and approved colonies and areas as against those in the lesser developed and
upcoming areas
Similarly buildings which are constructed on freehold land tend to command a
higher valuation than those on leasehold plots
13. AMENITIES
13
The valuation of properties with better infrastructural capabilities and modern
amenities are costlier than those which fail to provide proper
Electric connections
Telephone lines
Water sewerage facilities
Other infrastructures
Community centres
Children parks
Swimming pools
gymnasiums
Parking lots
General stores
Valuation of property is clearly based on the availability of necessities and
facilities connected with comfortable housing
14. INFRASTRUCTURE
14
Infrastructural development is one of the most important factors which influence
real estate prices in India
The presence of roads, airports, flyovers, malls and bus terminals and other
facilities in the vicinity of the property, helps in value escalation of the same
It is a known fact that connectivity is one of the most important requirements for
investors looking towards purchasing land or property
This leads to the concept which explains a rise in the valuation of property which is
well connected to
Entertainment hubs
Medical facilities
Educational institutions
Retail markets
Business centres
Along with other day to day facilities
15. COMMERCIAL REAL ESTATE
15
Places such as Noida, Gurgaon, Pune, Hyderabad, Navi Mumbai and
Andheri-Borivili in Mumbai, are striking examples of commercial
development which have affected the valuation of property in these
areas
The development of malls, IT offices and Special Economic Zones
near residential areas help in cutting down the time and energy
wasted in commuting to workplaces and increase the price of real estate
in the area
16. DISPOSABLE INCOME AND
AVAILABILITY OF LAND
16
DISPOSBALE INCOME
Properties which are located in agricultural areas or those dominated by
manufacturing units attract a lower price than those situated near the IT hubs
The valuation of property is in direct proportion to the quantum of disposable
income in the hands of the purchaser or the majority of population in that area
AVAILABILITY OF LAND
In places where there is ample land available for residential purposes or
development of real estate, the graph reflecting the valuation of property shows
a slower rise than in areas where land is comparatively scarce.
17. AFFORDABILITY
17
Affordability refers to the cost incurred by the owner in the process of enjoying
or retaining a property
In layman's term, it is the term which establishes a relationship between
interest rates, property prices and wages
If any of above three variables reach their maximum level in a particular area,
then the inhabitants start looking towards a better lifestyle elsewhere
18. STRUCTURE
18
THE VALUATION OF PROPERTY IS DEPENDENT ON THE
Specifications of materials used
Layout
Design
Durability
Life cycle of the building
FACTORS AFFECT THE PRICE OF A PARTICULAR PROPERTY ARE
The quality and cost of materials during construction
Size
Current rates of labour
Frontage
OTHER PHYSICALATTRIBUTES THAT AFFECTS THE PRICE ARE
Roof covering
Height of the building
Type of foundation
Waterproofing
Plinth level also affect the price of a particular property
19. CUSTOMIZATION
19
The cost of real estate becomes higher in the event of builders undertaking
customization of residential space on the lines of the purchaser's requirements
For example, some investors may want landscaped terraces or verandas
connected with their apartments, upgraded kitchens, specifically designed
internal stairways in duplex apartments, higher quality paint and flooring, or
other user defined changes
This leads to an escalation in the ultimate price charged to the buyer
Before making their real estate purchase decisions, investors should conduct
an analysis of these drivers to get a fair valuation of the property that interests
them
Careful investigation and homework can lead to better returns, easy liquidity
and more lucrative investments
20. SUPPLY FACTORS AFFECTING THE
REAL ESTATE INDUSTRY
20
If there is a limited supply of real estate in the market, it will usually push the
prices higher
Conversely, if there are a lot of properties in the market, the tendency is for the
price to go down
A balanced market will work well for both sellers and buyers
Even if the supply is imbalanced, there are other factors that can make the real
estate market performing well
Builders for example are going to adjust their plans to avoid oversupply of new
homes in their area
The more they build, the lower the prices would be so they are not going to
build and build without regard for the supply factor
Another thing that can balance the oversupply of housing is the availability of
land
Some regions do not have plenty of space for new housing so the risk of
oversupply of properties in the market is not that high
21. DEMAND VERSUS SUPPLY
21
The higher the demand for real estate, the
higher the prices would be
Localities situated in central part of Chennai
are already matured and established, thus the
scarcity of land is one of the major reason
pushing the demand up
Demand for real estate in a particular
area is inversely proportional to its
supply. As the supply or availability of real
estate decreases, the valuation of
property increases
Changes in population are the key drivers
for demand. Along with an increase in the
number of people inhabiting a particular
area, the popularity of a particular locality
in terms of people wanting to be a part of
the locality also increases its price
22. IMPACT OF RECESSION ON REAL
ESTATE
Incompletion of previous projects
Bad debts
Less demand in all segments
Cash starvation
Incompletion
of previous
projects.
Bad Debts.
Less
demand in all
segments.
Cash
starvation.
23. BARRIERS IN GROWTH OF REAL
ESTATE
Skill Shortage.
Non Availability of Statistics.
Overvaluation of Property.
Highly Fragmented.
Lack of Transparency.
24. EXPECTATIONS OF CUSTOMERS
24
Budget of the customer
Loan amount sanctioned to the customers
Income returns from the properties
Locality of the property
Proper drainage system facilities
Location of schools, hospitals, markets, bus stops from the property
Privacy of living
Quality of building
Availability of space for car parking
Location of the floor of the house
Vastu of the building
Patta and other approval for buildings
Safety
Approach to building
Approachability of brokers
Gifts for the purchases of house
Down payments and EMI
Location of the recreation and nearby religious places
25. CONSTRAINTS OF BUILDERS
25
Accidents that recently happened in that particular locality
Excess budget
Lack of ventilation in the building
New government policies
Inflation
Location of the recreation and religious centre near by
Fluctuations in GDP of the country
Income of the people
Demographic dividend
Ambience of the property
Saturation of growth of the property
Rescission in the IT and manufacturing sector
Changing customer preferences
Level of water table in that locality
Location of schools and colleges, office near by
Expenses sent on approval
Expenses on free gifts and marketing
26. CONCLUSION
26
REAL ESTATE PARCELS ARE UNIQUE AND FINITE
You cannot fill a real estate supply shortage by manufacturing more identical
units
Each piece is different and there is a finite supply
It's not a manufactured commodity
Though you might be able to create more condos in a give space, the space
itself is unique and cannot grow to accomodate a short supply
REAL ESTATE CANNOT BE MOVED TO FILL SHORTAGES
If there is a shortage of land for homes in a given area, you cannot move in
more land to alleviate the shortage
Real estate is where it sits. For this reason, it will always be a local commodity
influenced by local conditions
27. Conclusion contd...
27
OVER-SUPPLY MEANS LOWER PRICES:
Because of the first two items above, you can usually expect there to be a
fall in prices when there is an over-supply of homes or land in a given area
You cannot move the overage to another area to keep prices stable
UNDER-SUPPLY MEANS HIGHER PRICES:
If there isn't enough land or homes in a given area, then prices will almost
always rise
Even if there is the ability to construct more homes, the time delay cannot
fill the demand and prices will rise
Hence, economic theorists believe that when you have a large
supply of something, such as housing, prices for that something often
decline. Conversely, if supply of something like housing is limited,
prices for that housing often increase. However, you could have a large
supply of housing and if it's also in high demand prices might also rise.
28. Conclusion contd….
Today, India is one of the fastest growing economies of the world
Expected to be the 3rd largest economy by 2025 and the largest economy by
2050
70% of the future employment opportunities will be created in the cities
It contributes to country’s infrastructure by buildings, roads, flyovers, highways
etc
India needs Rs.60000 Crores in the next 20 years to meet its infrastructural
needs of approx. 68 cities that will have above one million population
Overall it can be concluded that a unit increase in real estate sector can
generate a fivefold increase in national income.
“The real estate sector will be the one that writes
the Indian growth story”