Real Estate market of India's Future

1. Future of India's
Real Estate Market
SOURCE - EQUITYMASTER

2. Cyclical downturn
Company A
Industry X
Company B

3. Industry X
Company A
Company B
Company C
Company D
Company E

4. Demand
Producti
on cuts
Cost
Cuts
Heavy
Advertisi
ng

5. Cyclical downturn
• Weak players exits the industry
• Supply reduces
• The players that survive the down cycle rise high.
• Demand increases with increase in consumer’s purchasing
power
• Firm’s starts to earn Supernormal Profits
• Rinse, Repeat

6. Current situation of real estate
sector in India
• Since 2014, the real estate sector has been in a downturn.
• Between 2008 to 2014 the sector saw huge supply across
the country.
• Demonetisation and GST further depressed the sector.

7. The answer again lies in the supply side of
the industry.
• New Regulation Authority under RERA
• The Real Estate (Regulation and Development) Act, 2016
(RERA) is an Act passed by the Indian Parliament.

8. Performance of SME’s IPOs in stock market