real estate in India

1. Real Estate Market

2. What is real Estate?
 Property consisting of land or buildings.
 The real estate sector is one of the most
globally recognised sectors. In India
 second largest employer after agriculture and
is slated to grow at 30 per cent over the next
decade. It alone contributes 5-6% of GDP
 There are 248,408,494 households in India,
just next to China, a number which exceeds
the population of half of the world's
countries.

3. Types of real estate
 There are four types of real estate
I. Residential real estate
II. Commercial real estate
III. Industrial real estate
IV. Land

4. Challenges
• Approvals and Procedural difficulties
• Lack of clear land titles
• Speculation in Land and Real Estate Prices
• Sources of Finance
• High Input Cost

5. Government Initiatives
 The Smart City Project, where there is a plan to build 100 smart
cities, is a prime opportunity for the real estate companies. Below
are some of the other major Government Initiatives:
 The Delhi Government has declared 89 out of 95 villages in Delhi
as urban areas which will ease the operationalising of the land
pooling policy, thereby giving a boost to affordable housing in
Delhi.
 The Reserve Bank of India (RBI) has proposed to allow banks to
invest in real estate investment trusts (REITs) and infrastructure
investment trusts (InvITs) which is expected to benefit both real
estate and banking sector in diversifying investor base and
investment avenues respectively.
 The Ministry of Housing and Urban Poverty Alleviation has
sanctioned the construction of 84,460 more affordable houses for
urban poor in five states, namely West Bengal, Jharkhand, Punjab,
Kerala and Manipur under the Pradhan Mantri Awas Yojana (Urban)
scheme with a total investment of Rs 3,073 crore (US$ 460
million).

6. Current trends in India
 The sector experienced a pickup in demand
during the second half of 2009 across major
cities mainly attributed to improvement in
economy.
 Industry sectors such as IT/ITeS and banking /
financial services are likely to remain the
dominant demand drivers for office space in
the country, with manufacturing / engineering,
e-Commerce, and pharmaceuticals being the
other active sectors that are likely to generate
demand for corporate real estate space.

7. Future Scope
 The Indian real estate market is expected to
touch $180 billion by 2020. In the period
FY2008-2020, the market size of this sector is
expected to increase at a compound annual
growth rate (CAGR) of 11.2%.
 Total demand for urban housing is estimated at
4.2 million units during the period 2016-2020
across the top eight cities. The urban housing
demand is the highest in Delhi-NCR amongst
the top 8 cities, forming nearly 24-26% of the
demand in each of the categories.