This document discusses the Indian real estate industry. It notes that the industry is the second largest employer in India after agriculture, growing at 30% annually and contributing 5% to India's GDP. Key drivers of growth are increasing urbanization as India's population becomes more urban, and rising per capita incomes. The document also compares India to China in terms of real estate investment and development. It outlines some of the major players in India's real estate market and their areas of focus. Finally, it presents a vision for what the industry may look like in 2020 with a focus on infrastructure, affordable housing, sustainability, and streamlined processes.

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2. In 1991, our then Finance Minister Manmohan Singh had concluded his maiden budget presentation with these words “ No power on earth can stop an idea whose time has come .” And the time has come for

5. Agenda Introduction Current Scenario Environmental Factors Growth Drivers Comparisons Major players Future: Reality-2020

6. Current Scenario Second largest employer next only to Agriculture USD 12 billion industry Growing at 30% year on year 5% share in country GDP

7. MICRO MACRO

9. GROWTH DRIVERS

12. URBANISATION According to the United Nations Population Fund (UNFPA) By 2030 more than 40.7% of Indian population would be urbanised. Presently, more than 28.7 per cent of India’s area is urban as against the global average of 48.7 per cent. India’s ‘Mega-Cities’ of Mumbai and Delhi would be the world’s 2nd and 3rd largest cities by 2015.

13. GROWTH IN PER CAPITA INCOME India’s per capita income is expected to be US$ 693 this year and is further expected to grow by 8-13 per cent in the next five years, particularly due to growth in the services sector

15. Following in CHINA’S footsteps? In 2000 FDI in china – USD 40 billion and India USD 2 billion (according to IMF USD 8 billion). Half of China’s FDI in real sector while it was negligible in India. China outperforming India by a long way. India is better placed than China in the democratic, financial and business sectors.

16. NO DESCRIPTION CHINA INDIA 1 Population (billion) 1.276 1.029 2 Urban Population (%) 37 33 3 GDP (Billion $) 1121 440 4 Per capita income ($) 990 440 5 Exports (billion $) 250 44.1 7 Savings (% of GDP) 39 22 8 Labor Laws More flexible Less flexible 9 Corporate Tax (%) 15 36.75 12 Power Generation (billion KW) 1,166 417 13 Electricity Tariff ($/100KW) 4.3 (Rs 1.97/unit) 7.53 (Rs 3.80/unit) 14 Sea Freight (million tonnes) 922.37 (17 ports) 251.73 (12 ports) 15 Roads (million km) 1.7 3.0 16 Railways (thousand km) 68.0 81.5 17 People per telephone 12 46 18 Percent FDIs from non residents 65 10

17. India urban population was 28% in 2000, grew to 29% in 2007 and is forecast to reach 34% by 2020 Urban population in thousands

18. Key Players(INDIA) Name Service Profile Presence DLF Accredited to be largest real estate developer in India, DLF City is a township spread over 3,000 acres in Gurgaon, Haryana, Asia’s largest private township Pan-India footprint Unitech Residential, Commercial, SEZ development, Retail and Hospitality Integrated townships at a number of cities Pan-India foot print Parsvnath Developers Residential, Retail, IT Parks and Commercial Plans to develop 12 SEZs across the country Pan-India footprint with a focus on National Capital Region K Raheja Corp. IT office, SEZ, Hospitality, Retail and Residential Developing 15 self-contained townships and 10 hotels Major presence in Mumbai, Bangalore

19. Key Players(GLOBAL) Name Country Presence Emmar Group DUBAI Mainly Hyderabad Singapore Housing Board Singapore Hyderabad/Chennai Salim Group Indonesia Kolkata Kontur Bintang/Westport Malaysia NCR

20. Temporary Glitches Over dependence on IT/ITES Affordability has taken a hit FSI: too little, too late

21. It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate

22. Reality-2020 (A) 100% infrastructure in RE projects This means that all projects would have quality access roads, water, Electricity, connectivity, safety and security. (B) SRZs Special Residential Zones must become a reality. The SRZs are like SEZs, only the development caters to housing for the masses. SRZs are to be free of government levies and taxes,

23. (C) Green mantra Green and sustainability will be consumer driven and not necessarily developer driven. (D) Land would have uniform laws the nation-wide The simple concept of replicating ‘best practices’ from town to town across the country.

24. (E) A single window for all NOCs and clearances Eliminate current unpredictability, enhance efficiency and ultimately pass on cost benefits to end users as risks of delay significantly decrease. (F) Efficient land records Only efficient and reliable land records can make the sector bereft of risk Courtesy HT Estate 26 th July 2008