The real estate industry in India is currently estimated at $48 billion and accounts for 4-5% of GDP. Growth has been driven by sectors such as IT/ITeS, foreign businesses expanding in India, and a growing consumer class. While demand outstrips supply across segments, commercial office space and residential housing are the largest and fastest growing due to urbanization, rising incomes, and mortgage financing. The organized retail and hospitality industries are also expanding rapidly due to increased tourism and consumerism.
The document provides an overview of trends in the Indian real estate market:
- The market size of real estate in India is expected to increase from US$ 126 billion in 2015 to US$ 853 billion by 2028, growing at a CAGR of 15.2%.
- There is significant demand for residential and commercial real estate due to rapid urbanization, rising incomes, and growth in sectors such as IT and retail.
- The residential segment contributes around 80% of the real estate sector. Demand is highest for mid-income and high-income housing in cities like NCR and Bengaluru.
The document discusses the real estate sector, noting that early human dwellings were found in caves dating back hundreds of thousands of years. It defines real estate as land and structures on it, and describes how the sector involves the purchase, sale, and development of residential and commercial property. The real estate industry has significant impacts on other sectors like retail, hospitality, and healthcare through the development of malls, hotels, and hospitals.
The real estate industry in India has grown rapidly and comprises housing, retail, hospitality, and commercial sub-sectors. It contributes significantly to India's GDP and total market size is expected to reach $180 billion by 2020. While the industry faces threats from new entrants, suppliers like land and banks have strong bargaining power. Buyers also have significant influence. Substitute threats are ambiguous due to economic conditions. Existing firms face high competition due to many players and difficulty differentiating offerings. Overall the industry is recovering from economic downturns and demand is growing steadily.
The real estate industry in India has grown rapidly and comprises four sub-sectors - housing, retail, hospitality, and commercial. It is expected to reach $180 billion by 2020 and is an important driver of India's economic growth. Private equity investment in real estate increased 28% in early 2014 compared to the previous quarter. While the government has supported development, competition is strong among the over 65 real estate firms in India and suppliers, buyers, and substitute products exert bargaining power, making the industry only moderately profitable currently.
The document summarizes the Magicbricks PropIndex for the quarter of April-June 2011 across 11 Indian cities. Some key highlights:
- The National Property Index (NPI) rose 3% driven by rising prices and supply in major cities like Mumbai, Gurgaon, Bangalore, Pune and Ghaziabad.
- 8 of the 11 cities covered saw a positive trend in their city index, while Delhi, Hyderabad and Chennai saw declines. Noida and Kolkata saw the largest rises at 13% and 11%.
- Newly developing areas and redeveloped properties in older areas performed well due to newer formats and amenities. Rising supply along new growth corridors also impacted indexes.
Multifamily properties in Indianapolis have seen strong demand over the past two years, with vacancy rates at their lowest levels in over a decade. In the second quarter of 2012, the vacancy rate was 5.6% with net absorption of 1,319 units. Rents have increased for eight consecutive quarters, with average asking rents up 0.8% in the second quarter. Over 2,000 new multifamily units are slated for completion in 2012 to meet ongoing demand. Demographic trends including increased household formation and young renters entering the market indicate demand for rental properties will remain robust in the coming years.
- The global commercial real estate industry accounts for 78.4% of world GDP and is projected to grow 2% annually for the next 5 years.
- The industry is concentrated in large countries but competition is decentralized within each country. While cross-border investment is growing, most investment remains domestic.
- Significant cultural, administrative, geographic and economic differences between countries promote the localization of the commercial real estate industry within each market. Demand and business practices vary substantially across borders.
The Almaty office market saw approximately 20% growth in total gross area in 2011 due to planned and suspended project completions. While the bank liquidity crisis that began in 2007 slowed construction and investment, economic and market indicators remain positive. The average vacancy rate decreased to approximately 27% in Q2 2011 compared to 40% in 2009, and rental rates across all office classes remained relatively stable. Demand for office space continued recovering gradually in the second quarter.
The document provides an overview of trends in the Indian real estate market:
- The market size of real estate in India is expected to increase from US$ 126 billion in 2015 to US$ 853 billion by 2028, growing at a CAGR of 15.2%.
- There is significant demand for residential and commercial real estate due to rapid urbanization, rising incomes, and growth in sectors such as IT and retail.
- The residential segment contributes around 80% of the real estate sector. Demand is highest for mid-income and high-income housing in cities like NCR and Bengaluru.
The document discusses the real estate sector, noting that early human dwellings were found in caves dating back hundreds of thousands of years. It defines real estate as land and structures on it, and describes how the sector involves the purchase, sale, and development of residential and commercial property. The real estate industry has significant impacts on other sectors like retail, hospitality, and healthcare through the development of malls, hotels, and hospitals.
The real estate industry in India has grown rapidly and comprises housing, retail, hospitality, and commercial sub-sectors. It contributes significantly to India's GDP and total market size is expected to reach $180 billion by 2020. While the industry faces threats from new entrants, suppliers like land and banks have strong bargaining power. Buyers also have significant influence. Substitute threats are ambiguous due to economic conditions. Existing firms face high competition due to many players and difficulty differentiating offerings. Overall the industry is recovering from economic downturns and demand is growing steadily.
The real estate industry in India has grown rapidly and comprises four sub-sectors - housing, retail, hospitality, and commercial. It is expected to reach $180 billion by 2020 and is an important driver of India's economic growth. Private equity investment in real estate increased 28% in early 2014 compared to the previous quarter. While the government has supported development, competition is strong among the over 65 real estate firms in India and suppliers, buyers, and substitute products exert bargaining power, making the industry only moderately profitable currently.
The document summarizes the Magicbricks PropIndex for the quarter of April-June 2011 across 11 Indian cities. Some key highlights:
- The National Property Index (NPI) rose 3% driven by rising prices and supply in major cities like Mumbai, Gurgaon, Bangalore, Pune and Ghaziabad.
- 8 of the 11 cities covered saw a positive trend in their city index, while Delhi, Hyderabad and Chennai saw declines. Noida and Kolkata saw the largest rises at 13% and 11%.
- Newly developing areas and redeveloped properties in older areas performed well due to newer formats and amenities. Rising supply along new growth corridors also impacted indexes.
Multifamily properties in Indianapolis have seen strong demand over the past two years, with vacancy rates at their lowest levels in over a decade. In the second quarter of 2012, the vacancy rate was 5.6% with net absorption of 1,319 units. Rents have increased for eight consecutive quarters, with average asking rents up 0.8% in the second quarter. Over 2,000 new multifamily units are slated for completion in 2012 to meet ongoing demand. Demographic trends including increased household formation and young renters entering the market indicate demand for rental properties will remain robust in the coming years.
- The global commercial real estate industry accounts for 78.4% of world GDP and is projected to grow 2% annually for the next 5 years.
- The industry is concentrated in large countries but competition is decentralized within each country. While cross-border investment is growing, most investment remains domestic.
- Significant cultural, administrative, geographic and economic differences between countries promote the localization of the commercial real estate industry within each market. Demand and business practices vary substantially across borders.
The Almaty office market saw approximately 20% growth in total gross area in 2011 due to planned and suspended project completions. While the bank liquidity crisis that began in 2007 slowed construction and investment, economic and market indicators remain positive. The average vacancy rate decreased to approximately 27% in Q2 2011 compared to 40% in 2009, and rental rates across all office classes remained relatively stable. Demand for office space continued recovering gradually in the second quarter.
Bangalore has experienced rapid growth fueled by its position as a major tech hub. The city's population is projected to reach 14 million by 2021, up from the current 9.6 million, driven by the booming IT sector which adds over 100,000 jobs annually. Residential demand has grown significantly as the population expands. In 2011, over 20,600 residential units were absorbed in Bangalore with over 44,000 units launched, though the market may now be oversupplied. Major infrastructure projects like the metro rail aim to support continued growth by improving transportation.
The Chicago office market saw modest employment growth of 1.2% in Q2 2006, adding 44,600 jobs. While several sectors grew, manufacturing continued declining with a 1.7% drop. The local economy benefits from a $15 billion expansion at O'Hare Airport expected to generate 90,000 to 195,000 jobs. Population growth of 0.6% annually brings modest demand. Office fundamentals are stable with slow rent growth and falling vacancy as absorption exceeds construction.
Industry analysis of the real estate sectorArunav Nayak
This document provides an industry analysis of the real estate sector in India. It discusses the current scenario and key drivers of growth in the Indian real estate market. It analyzes the different segments of real estate including residential, commercial, retail and hospitality. It also discusses the major players, market performance, global trends, and applies Porter's 5 forces model to understand the profitability of the Indian real estate sector. While there are challenges, the analysis concludes that with demand for real estate growing at 19% annually, prospects remain bright for the industry.
The document summarizes the office market in Metro Detroit and Washtenaw County for Q4 2011. It reports that vacancy rates remained stable at 19.5% in the Metro Detroit area. Net absorption was positive 297,451 square feet for Q4 2011, while rental rates slightly decreased to $18.15 per square foot. The market is believed to be close to bottoming out with stable vacancy levels throughout 2011 and absorption of existing space continuing as new construction remains low.
Indian Real Estate Industry Presentation 010709Workosaur.com
The document provides an overview of the Indian real estate market in December 2008. It discusses the key growth drivers in various real estate segments like commercial, residential, retail, and hospitality. It also outlines the market structure, segmentation, outlook and major regulations for foreign direct investment for each segment. Additionally, it analyzes the union budget of 2008 and its impact on the real estate sector through various policy interventions and changes in direct and indirect taxes.
The document provides an overview of the real estate sector in India. Some key points:
- The size of India's real estate market is expected to grow from $126 billion in 2015 to $853 billion by 2028, representing a CAGR of 15.85%.
- Rapid urbanization, growing income levels, and a large young population are driving demand for residential and commercial real estate across major cities.
- The government has introduced initiatives like the Housing for All scheme and increased FDI limits to boost investment and development in the sector.
- Segments like residential, retail, and commercial real estate are expected to see strong growth driven by urbanization, economic development, and organized retail expansion.
The document provides an overview of the real estate sector in India. Some key points:
- The size of India's real estate market is expected to grow from $126 billion in 2015 to $853 billion by 2028, representing a CAGR of 15.85%.
- Rapid urbanization, growing income levels, and a large young population are driving demand for residential and commercial real estate across major cities.
- The government has introduced initiatives like the Housing for All scheme and increased FDI limits to boost investment and development in the sector.
- Segments like residential, retail, and commercial real estate are expected to see strong growth, with demand for office and retail space centered in cities like Delhi, Bengaluru
The document provides an overview of opportunities in the Indian real estate market across various asset classes such as commercial, residential, retail, and hospitality. Strong economic growth and favorable demographics are driving demand across all real estate sectors. Increased urbanization and investment in infrastructure are also fueling growth. The IT/ITES sector in particular is a major driver of demand for commercial office space, with annual growth of 25-50% and projected space needs of over 250 million square feet by 2012.
The document provides an overview of the Indian real estate market. Some key points:
- The Indian real estate market size is expected to grow over 7 times from $126 billion in 2015 to $853 billion by 2028.
- Rapid urbanization, growing economy, and rising incomes are driving demand across residential, commercial, and retail real estate segments.
- The government has introduced initiatives like the Housing for All scheme and relaxed FDI norms to boost the sector.
The document provides an overview of the real estate sector in India. Some key points:
- The size of India's real estate market is expected to grow 7 times from USD 126 billion in 2015 to USD 853 billion by 2028.
- Rapid urbanization, rising incomes, and government initiatives like the Housing for All program are driving demand in the residential and commercial real estate sectors.
- The top cities driving demand are Mumbai, Delhi NCR, and Bengaluru in the residential, office, retail, and hospitality segments.
- Factors like increasing FDI flows, policy support, and opportunities in new areas like tourism are advantages for growth in India's large and growing real estate market.
The document provides an overview of the real estate sector in India. Some key points:
- India's real estate market size is expected to increase over 7 times from USD126 billion in 2015 to USD853 billion by 2028.
- Rapid urbanization, rising incomes, and government policies like Housing for All are driving demand for residential and commercial real estate.
- Demand is growing across major cities like Mumbai, Delhi, Bengaluru for residential, office, retail, and hospitality space.
- The sector is expected to see increased investments from foreign and domestic players due to growth opportunities and improved regulations.
The document discusses the Indian real estate sector. It notes that the sector is expected to more than double in size to $649.5 billion by 2020 from $360 billion in 2010. Rapid urbanization and rising incomes are driving demand for residential, commercial, and retail real estate. The government is also supporting the sector through policies around affordable housing and allowing 100% FDI. The real estate sector is fragmented with consolidation opportunities and is expected to see continued investment and growth.
The document provides an overview of the real estate sector in India with the following key points:
- The size of India's real estate market is expected to grow 7 times by 2028 to USD 853 billion from USD 126 billion in 2015.
- Rapid urbanization, rising incomes, and government policies like the Housing for All initiative are driving demand in the residential and commercial real estate sectors.
- Key segments include residential, commercial, retail, hospitality, and SEZs. Residential contributes about 80% currently while commercial is seeing strong growth.
- Major cities like Mumbai, Delhi, Bengaluru, Chennai, and Pune are the largest markets but demand is growing strongly in tier 2 and 3
The document provides information on the Indian real estate sector. Some key points:
- The Indian real estate market is expected to grow significantly by 2028, increasing from $126 billion in 2015 to an estimated $853 billion.
- Rapid urbanization, rising incomes, and government policies like the Housing for All initiative are driving growth in the sector.
- Demand is strong across segments like residential, commercial, and retail space. The residential segment currently contributes about 80% of the market.
- Major cities like Mumbai, Delhi, and Bengaluru are seeing high demand for office and retail space. The demand is growing for commercial properties in tier 2 and 3 cities as well.
The real estate industry in India has experienced rapid growth and contributes significantly to the country's GDP and employment. It includes residential, commercial, retail, and hospitality segments. Key factors driving growth include rising incomes, increased availability of financing, and urbanization. While growth has been highest in major cities, smaller cities and towns are also expanding. The industry generates substantial demand for raw materials and employs many workers. Overall revenues are projected to reach $180 billion by 2020, representing a compound annual growth rate of 11.6%. The residential sector faces an urban housing shortage of over 18 million units. Commercial real estate also offers investment opportunities, though larger minimum investment sizes. The retail sector is seeing increased organized development and foreign investment.
The real estate sector in India is expected to reach $1 trillion by 2030, growing from $120 billion in 2017. Rapid urbanization is driving demand for residential and commercial real estate across major cities. The government's Housing for All initiative aims to provide housing to all by 2022 through initiatives like Pradhan Mantri Awas Yojana. Commercial office space absorption is projected to exceed 700 million square feet by 2022. Retail, hospitality, and other real estate segments are also expected to see strong growth on the back of economic expansion and rising incomes.
The document provides an overview of the real estate sector in India. It discusses that the real estate sector is expected to reach $1 trillion by 2030 and contribute 13% of India's GDP by 2025. Rapid urbanization is driving demand for residential and commercial real estate space. The residential segment contributes around 80% of the sector currently. Government policies like Housing for All and Smart Cities are further boosting growth.
The real estate sector in India is expected to reach US$ 650 billion by 2040, driven by rapid urbanization, rising incomes, and government initiatives like Housing for All. Currently valued at US$ 120 billion, the sector is growing at a CAGR of over 10%. Key segments include residential, commercial, retail, hospitality, and infrastructure. While metros continue to drive demand, growth is also being seen in tier 2 and 3 cities. The government's focus on smart cities and affordable housing is further boosting real estate activity across India.
presentation on real estate industry in indiaVicky Nishad
The real estate industry in India is one of the fastest growing sectors. It contributes about 5% to India's GDP and is expected to reach $180 billion by 2020. The industry faces strengths such as strong domestic demand and available labor, but also weaknesses like lack of regulations and high investment costs. Opportunities for growth exist in tier 2 cities and increasing office space demand, while threats include skills shortages and delays in project approvals. A SWOT analysis of the Indian real estate industry was presented.
Industry Review on Real Estate Sector in India.pptxkanhaa5587
The real estate sector in India is a dynamic and rapidly growing industry driven by various factors. With a population of around 1.38 billion and expected to surpass China by 2030, India's economic transformation has positioned it as a promising business environment, particularly in the services sector. The sector has witnessed significant growth, with real GDP averaging 6% per annum since 1992, making India an attractive destination for property investors due to its favorable demographics and strong economic growth.
Historically, the real estate sector in India was unorganized, characterized by challenges like lack of transparency, absence of centralized title registry, and financing issues. However, recent years have seen a shift towards greater organization and transparency, driven by regulatory reforms and government support for repealing outdated acts like the Urban Land Ceiling Act.
Key drivers of demand in the Indian real estate market include rising disposable incomes, increased urbanization, and the growth of the IT and ITES sectors, which have led to a surge in demand for residential and commercial properties. The residential sector is expected to continue demonstrating robust growth, supported by factors like housing finance penetration and tax incentives. Additionally, the commercial real estate sector has seen growth fueled by increased revenues in sectors like IT and ITES, leading to a demand for commercial spaces.
The industry is witnessing a gradual shift in financing methods, with private debt and bank lending emerging as significant sources of real estate finance. Moreover, the sector has attracted substantial private equity investments, with FDI inflows contributing significantly to the growth of the real estate market in India. The government's policy support, including allowing up to 100% FDI for townships and settlements development projects, has further boosted private investment in the sector.
Overall, the real estate industry in India presents a mix of challenges and opportunities, with the sector evolving towards a more regulated and transparent environment. The market is expected to continue its growth trajectory, with increasing investments, policy support, and changing consumer trends shaping the future landscape of real estate in India.
Bangalore has experienced rapid growth fueled by its position as a major tech hub. The city's population is projected to reach 14 million by 2021, up from the current 9.6 million, driven by the booming IT sector which adds over 100,000 jobs annually. Residential demand has grown significantly as the population expands. In 2011, over 20,600 residential units were absorbed in Bangalore with over 44,000 units launched, though the market may now be oversupplied. Major infrastructure projects like the metro rail aim to support continued growth by improving transportation.
The Chicago office market saw modest employment growth of 1.2% in Q2 2006, adding 44,600 jobs. While several sectors grew, manufacturing continued declining with a 1.7% drop. The local economy benefits from a $15 billion expansion at O'Hare Airport expected to generate 90,000 to 195,000 jobs. Population growth of 0.6% annually brings modest demand. Office fundamentals are stable with slow rent growth and falling vacancy as absorption exceeds construction.
Industry analysis of the real estate sectorArunav Nayak
This document provides an industry analysis of the real estate sector in India. It discusses the current scenario and key drivers of growth in the Indian real estate market. It analyzes the different segments of real estate including residential, commercial, retail and hospitality. It also discusses the major players, market performance, global trends, and applies Porter's 5 forces model to understand the profitability of the Indian real estate sector. While there are challenges, the analysis concludes that with demand for real estate growing at 19% annually, prospects remain bright for the industry.
The document summarizes the office market in Metro Detroit and Washtenaw County for Q4 2011. It reports that vacancy rates remained stable at 19.5% in the Metro Detroit area. Net absorption was positive 297,451 square feet for Q4 2011, while rental rates slightly decreased to $18.15 per square foot. The market is believed to be close to bottoming out with stable vacancy levels throughout 2011 and absorption of existing space continuing as new construction remains low.
Indian Real Estate Industry Presentation 010709Workosaur.com
The document provides an overview of the Indian real estate market in December 2008. It discusses the key growth drivers in various real estate segments like commercial, residential, retail, and hospitality. It also outlines the market structure, segmentation, outlook and major regulations for foreign direct investment for each segment. Additionally, it analyzes the union budget of 2008 and its impact on the real estate sector through various policy interventions and changes in direct and indirect taxes.
The document provides an overview of the real estate sector in India. Some key points:
- The size of India's real estate market is expected to grow from $126 billion in 2015 to $853 billion by 2028, representing a CAGR of 15.85%.
- Rapid urbanization, growing income levels, and a large young population are driving demand for residential and commercial real estate across major cities.
- The government has introduced initiatives like the Housing for All scheme and increased FDI limits to boost investment and development in the sector.
- Segments like residential, retail, and commercial real estate are expected to see strong growth driven by urbanization, economic development, and organized retail expansion.
The document provides an overview of the real estate sector in India. Some key points:
- The size of India's real estate market is expected to grow from $126 billion in 2015 to $853 billion by 2028, representing a CAGR of 15.85%.
- Rapid urbanization, growing income levels, and a large young population are driving demand for residential and commercial real estate across major cities.
- The government has introduced initiatives like the Housing for All scheme and increased FDI limits to boost investment and development in the sector.
- Segments like residential, retail, and commercial real estate are expected to see strong growth, with demand for office and retail space centered in cities like Delhi, Bengaluru
The document provides an overview of opportunities in the Indian real estate market across various asset classes such as commercial, residential, retail, and hospitality. Strong economic growth and favorable demographics are driving demand across all real estate sectors. Increased urbanization and investment in infrastructure are also fueling growth. The IT/ITES sector in particular is a major driver of demand for commercial office space, with annual growth of 25-50% and projected space needs of over 250 million square feet by 2012.
The document provides an overview of the Indian real estate market. Some key points:
- The Indian real estate market size is expected to grow over 7 times from $126 billion in 2015 to $853 billion by 2028.
- Rapid urbanization, growing economy, and rising incomes are driving demand across residential, commercial, and retail real estate segments.
- The government has introduced initiatives like the Housing for All scheme and relaxed FDI norms to boost the sector.
The document provides an overview of the real estate sector in India. Some key points:
- The size of India's real estate market is expected to grow 7 times from USD 126 billion in 2015 to USD 853 billion by 2028.
- Rapid urbanization, rising incomes, and government initiatives like the Housing for All program are driving demand in the residential and commercial real estate sectors.
- The top cities driving demand are Mumbai, Delhi NCR, and Bengaluru in the residential, office, retail, and hospitality segments.
- Factors like increasing FDI flows, policy support, and opportunities in new areas like tourism are advantages for growth in India's large and growing real estate market.
The document provides an overview of the real estate sector in India. Some key points:
- India's real estate market size is expected to increase over 7 times from USD126 billion in 2015 to USD853 billion by 2028.
- Rapid urbanization, rising incomes, and government policies like Housing for All are driving demand for residential and commercial real estate.
- Demand is growing across major cities like Mumbai, Delhi, Bengaluru for residential, office, retail, and hospitality space.
- The sector is expected to see increased investments from foreign and domestic players due to growth opportunities and improved regulations.
The document discusses the Indian real estate sector. It notes that the sector is expected to more than double in size to $649.5 billion by 2020 from $360 billion in 2010. Rapid urbanization and rising incomes are driving demand for residential, commercial, and retail real estate. The government is also supporting the sector through policies around affordable housing and allowing 100% FDI. The real estate sector is fragmented with consolidation opportunities and is expected to see continued investment and growth.
The document provides an overview of the real estate sector in India with the following key points:
- The size of India's real estate market is expected to grow 7 times by 2028 to USD 853 billion from USD 126 billion in 2015.
- Rapid urbanization, rising incomes, and government policies like the Housing for All initiative are driving demand in the residential and commercial real estate sectors.
- Key segments include residential, commercial, retail, hospitality, and SEZs. Residential contributes about 80% currently while commercial is seeing strong growth.
- Major cities like Mumbai, Delhi, Bengaluru, Chennai, and Pune are the largest markets but demand is growing strongly in tier 2 and 3
The document provides information on the Indian real estate sector. Some key points:
- The Indian real estate market is expected to grow significantly by 2028, increasing from $126 billion in 2015 to an estimated $853 billion.
- Rapid urbanization, rising incomes, and government policies like the Housing for All initiative are driving growth in the sector.
- Demand is strong across segments like residential, commercial, and retail space. The residential segment currently contributes about 80% of the market.
- Major cities like Mumbai, Delhi, and Bengaluru are seeing high demand for office and retail space. The demand is growing for commercial properties in tier 2 and 3 cities as well.
The real estate industry in India has experienced rapid growth and contributes significantly to the country's GDP and employment. It includes residential, commercial, retail, and hospitality segments. Key factors driving growth include rising incomes, increased availability of financing, and urbanization. While growth has been highest in major cities, smaller cities and towns are also expanding. The industry generates substantial demand for raw materials and employs many workers. Overall revenues are projected to reach $180 billion by 2020, representing a compound annual growth rate of 11.6%. The residential sector faces an urban housing shortage of over 18 million units. Commercial real estate also offers investment opportunities, though larger minimum investment sizes. The retail sector is seeing increased organized development and foreign investment.
The real estate sector in India is expected to reach $1 trillion by 2030, growing from $120 billion in 2017. Rapid urbanization is driving demand for residential and commercial real estate across major cities. The government's Housing for All initiative aims to provide housing to all by 2022 through initiatives like Pradhan Mantri Awas Yojana. Commercial office space absorption is projected to exceed 700 million square feet by 2022. Retail, hospitality, and other real estate segments are also expected to see strong growth on the back of economic expansion and rising incomes.
The document provides an overview of the real estate sector in India. It discusses that the real estate sector is expected to reach $1 trillion by 2030 and contribute 13% of India's GDP by 2025. Rapid urbanization is driving demand for residential and commercial real estate space. The residential segment contributes around 80% of the sector currently. Government policies like Housing for All and Smart Cities are further boosting growth.
The real estate sector in India is expected to reach US$ 650 billion by 2040, driven by rapid urbanization, rising incomes, and government initiatives like Housing for All. Currently valued at US$ 120 billion, the sector is growing at a CAGR of over 10%. Key segments include residential, commercial, retail, hospitality, and infrastructure. While metros continue to drive demand, growth is also being seen in tier 2 and 3 cities. The government's focus on smart cities and affordable housing is further boosting real estate activity across India.
presentation on real estate industry in indiaVicky Nishad
The real estate industry in India is one of the fastest growing sectors. It contributes about 5% to India's GDP and is expected to reach $180 billion by 2020. The industry faces strengths such as strong domestic demand and available labor, but also weaknesses like lack of regulations and high investment costs. Opportunities for growth exist in tier 2 cities and increasing office space demand, while threats include skills shortages and delays in project approvals. A SWOT analysis of the Indian real estate industry was presented.
Industry Review on Real Estate Sector in India.pptxkanhaa5587
The real estate sector in India is a dynamic and rapidly growing industry driven by various factors. With a population of around 1.38 billion and expected to surpass China by 2030, India's economic transformation has positioned it as a promising business environment, particularly in the services sector. The sector has witnessed significant growth, with real GDP averaging 6% per annum since 1992, making India an attractive destination for property investors due to its favorable demographics and strong economic growth.
Historically, the real estate sector in India was unorganized, characterized by challenges like lack of transparency, absence of centralized title registry, and financing issues. However, recent years have seen a shift towards greater organization and transparency, driven by regulatory reforms and government support for repealing outdated acts like the Urban Land Ceiling Act.
Key drivers of demand in the Indian real estate market include rising disposable incomes, increased urbanization, and the growth of the IT and ITES sectors, which have led to a surge in demand for residential and commercial properties. The residential sector is expected to continue demonstrating robust growth, supported by factors like housing finance penetration and tax incentives. Additionally, the commercial real estate sector has seen growth fueled by increased revenues in sectors like IT and ITES, leading to a demand for commercial spaces.
The industry is witnessing a gradual shift in financing methods, with private debt and bank lending emerging as significant sources of real estate finance. Moreover, the sector has attracted substantial private equity investments, with FDI inflows contributing significantly to the growth of the real estate market in India. The government's policy support, including allowing up to 100% FDI for townships and settlements development projects, has further boosted private investment in the sector.
Overall, the real estate industry in India presents a mix of challenges and opportunities, with the sector evolving towards a more regulated and transparent environment. The market is expected to continue its growth trajectory, with increasing investments, policy support, and changing consumer trends shaping the future landscape of real estate in India.
The Indian economy grew at 6.9% in 2010-11, with GDP increasing from $0.5 billion in 2000 to $1.53 trillion in 2010. Investment grew at 10.9% annually over this period. FDI inflows were $37.76 billion in 2010-11, an increase of 8.41% from 2000. Key sectors driving growth include telecom, automobile, and retail. New opportunities are emerging in tier 2 and 3 cities as affluence spreads beyond major metro areas. Understanding the diversity of consumer types will be important for marketers targeting India's expanding affluent population.
The Indian real estate sector has grown at 20% annually and contributes 6-7% to India's GDP. It includes housing, retail, hospitality, and commercial real estate. The housing market makes up 85% of the sector and is expected to grow demand from 880 million to 1.5 billion square feet by 2028. Recent government initiatives like the RERA Act and investments in infrastructure and smart cities are fueling further growth in the sector. However, the market still faces challenges around construction delays and inventory overhang from previous downturns.
The document provides an overview of the Indian real estate market. Some key points:
- The Indian real estate market is expected to grow to $180 billion by 2020 from $126 billion in 2015, driven by rapid urbanization.
- Housing shortage in urban and rural India is estimated at around 60 million units, providing significant growth opportunities.
- Residential real estate accounts for around 80% of the market. Demand is growing due to population growth, rising incomes, and an expanding middle class.
- Commercial real estate demand is strongest in major cities like Mumbai, Delhi, and Bengaluru, which account for over 60% of total office space demand.
The document provides an overview of the real estate sector in India:
1. The real estate market in India is expected to reach $180 billion by 2020 from $126 billion in 2015, driven by rapid urbanization, rising incomes, and the government's Housing for All initiative.
2. Demand is growing across all real estate segments including residential, commercial, retail, and hospitality. The residential segment contributes around 80% of the market.
3. Major opportunities exist to address the large housing shortage estimated at over 30 million units in urban and rural areas. The government aims to build 100 smart cities to reduce migration to large cities.
Similar to Realestate010709 090504162154-phpapp01 (20)
Andhra Pradesh, known for its strategic location on the southeastern coast of India, has emerged as a key player in India’s industrial landscape. Over the decades, the state has witnessed significant growth across various sectors,
Why is Revit MEP Outsourcing considered an as good option for construction pr...MarsBIM1
Outsourcing MEP modeling services require effective collaboration and coordination amongst multiple engineering trades. The engineers and the designers often change the details of the MEP projects, but the work of Revit MEP drafting services is having the master plan and model of the complete project. To have proper coordination and installation, there is a need to execute the project effectively. Hence, the work of Revit family creation facilitates the MEP engineers.
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Signature Global TITANIUM SPR | 3.5 & 4.5BHK High rise Apartments in Gurgaonglobalsignature2022
Signature Global TITANIUM SPR launched a high rise apartments in Gurgaon . In this project Signature Global offers 3.5 & 4.5 BHK high rise Apartment at sector 71 Gurgaon SPR Road. Signature Global Titanium SPR is IGBC Gold certified, a testament to our commitment to sustainability.
36,778 sq. ft. building; Zoning: SE (Suburban Employment): The (SE) District allows numerous commercial site uses; Passenger elevator; Private and common restrooms; Fully sprinkled; Data center with a grounded floor and a specialized HVAC system; 60 KVA back-up generator; Building/pylon signage; Potential to purchase adjacent parcels; Sale Price: $4,413,360
Listing Turkey - Piyalepasa Istanbul CatalogListing Turkey
We are working around the clock to transform a long-time dream into reality. As a result, Piyalepasa Istanbul will be the largest privately developed urban regeneration project in Turkey.
THE NEIGHBORHOOD WE HAVE BEEN LONGING FOR IS COMING TO LIFE
The good old days of the Piyalepasa neighborhood are being brought back to life with Piyalepasa Istanbul houses, residences, offices, hotels and a pedestrianized shopping avenue.
The wide streets of this 82.000 square meter development conveniently face the main boulevard in a prime Beyoglu location. “Piyalepaşa İstanbul” stands out as the only project designed to offer a neighborhood lifestyle, complete with its grocers, bagel sellers and greengrocer. Piyalepasa Istanbul has all the values to make it an authentic neighborhood, our very own community.
A NEIGHBORHOOD FULL OF LIFE, IN THE HEART OF THE CITY!
“Piyalepaşa İstanbul” is a “mixed-use” concept containing all the elements for a vibrant social life with houses, residences, offices, hotels and high street shopping.
“Piyalepaşa İstanbul” will take the liveliness of Istanbul into its heart. The elegant sparkle of Nisantasi, the young and colorful Besiktas, the variety and multicultural heritage of Istiklal Street will all be contained within the streets of this neighborhood.
“Piyalepaşa İstanbul” bears traces of the most beautiful examples of Turkish architecture from the Seljuks to the Ottomans and from Anatolia to Rumelia. With its graded facades, wide eaves, bay windows, pools, and interior courtyard systems, it offers a new living space without disrupting the city’s silhouette and neighborhood.
“Piyalepaşa İstanbul” is the new attraction of this splendid city.
TO BE AT THE CENTER OF ISTANBUL… THIS IS REAL LUXURY!
With its proximity to D-100 highway, connecting roads and tunnels, “Piyalepaşa İstanbul” is only minutes away from Kabatas, Besiktas, the Golden Horn and Karakoy.
“Piyalepaşa İstanbul” is close to the prestigious new Istanbul Court House, a major hospital, the Perpa trade center and the city’s most lively neighborhoods. With its shuttle service to Okmeydani Metrobus station, Sishane and the Court House subway stations, “Piyalepaşa İstanbul” will provide you with the most convenient transport connections.
https://listingturkey.com/property/piyalepasa-istanbul/
Living in an UBER World - June '24 Sales MeetingTom Blefko
June 2024 Lancaster County Sales Meeting for Berkshire Hathaway HomeServices Homesale Realty covering the following topics: 1. VA Suspends Buyer Agent Payment Plan (article), 2. Frequently Used Terms in title, 3. Zillow Showcase Overview, 4. QuickBuy commission promotion, 5. Documenting Cooperative Compensation, 6. NAR's Code of Ethics - Mass Media Solicitations, 7. Is it really cheaper to rent? 8. Do's and Don't's when Terminating the Agreement of Sale, 9. Living in an UBER World
Anilesh Ahuja Pioneering a Paradigm Shift in Real Estate Success.pptxneilahuja668
Anilesh Ahuja journey is a testament to the power of vision, resilience, and unwavering determination. As a visionary leader, he continues to inspire and empower others to dream big and challenge the status quo. His legacy extends far beyond the realm of real estate, leaving an indelible mark on the industry and the world at large.
Stark Builders: Where Quality Meets Craftsmanship!shuilykhatunnil
At Stark Builders our vision is to redefine the renovation experience by combining both stunning design and high quality construction skills. We believe that by delivering both these key aspects together we are able to achieve incredible results for our clients and ensure every project reflects their vision and enhances their lifestyle.
Although we are not all related by blood we have created a team of highly professional and hardworking individuals who share the common goal of delivering beautiful and functional renovated spaces. Our tight nit team are able to work together in a way where we pour our passion into each and every project as we have a love for what we do. Building is our life.
3. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Market overview: Real estate
• Real estate industry is currently estimated to be
US$ 48 billion, with a CAGR of 30 per cent
• Total economic value estimated to be
US$ 40-45 billion accounting for four to
five per cent of the GDP
• Growth driven primarily by IT/ITeS, growing
presence of foreign businesses in India, the
globalization of Indian corporates and, the rapidly
increasing consumer class providing a huge
market potential
• The real etate sector is in an early growth stage,
can be segmented into residential, commercial,
retail and hospitality asset classes
• Demand-supply gap across all segments for
quality real estate
Source: Industry Sources, EY Analysis
www.ibef.org
4. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Commercial office space
Growth Drivers
• Growth in IT/ITES sector at 30 per cent annually
(source: NASSCOM)
• Significant growth in FDI
Market Structure
• Dominated by a few large national developers
with pan-India presence
• Regional players are expanding to achieve a
Pan-India presence
• Shift in the type of operations from Sale Model
to lease maintain model
www.ibef.org
5. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Commercial office space
Segmentation Commercial Office Space Absorption
Total: 45 mn sq. ft (2006)
• Commercial Space can be classified broadly into
Grade A and B
8%
20%
• Business activity shifting from CBD to SBD and 8%
from Tier I to Tier II III
12%
Outlook
19%
• Commercial market expected to grow at CAGR 12%
of 20 per cent to 22 per cent over the next five years
9%
12%
• IT/ITeS sector expected to require in excess
of 250 million sq. ft of commercial office space
by 2012-13 n Bangalore n NCR n Mumbai
n Chennai n Kolkata n Hyderabad
n Pune n Tier III Cities
Source: EY estimates for top seven cities
www.ibef.org
6. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Residential space
Rising Urbanisation in India
Growth Drivers
Cities
• Rapid urbanisation: Urban population expected
1971
to touch 590 million by 2030.
• Decreasing household size: Average increase in 1981
number of nuclear families estimated to be over
300 million (middle class population). 1991
• Number of rich household growing at CAGR of 2001
21 per cent.
• Increasing working age population (almost 64 per cent 2006
in 16-64 age group).
2011
• Increasing income levels: per capita GDP increased 0 10 20 30 40 50 60 70
by 66 per cent in last five years. Percentage (%)
Market Structure n Urban population (%) n Contribution to national income (%)
n Cities population more than 1 million (P..H.S.)
• Highly fragmented and unorganized Source: - National Institute of Urban Affairs, UNDP, EY Research
• Regional players are expanding to achieve a
Pan-India presence
www.ibef.org
7. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Residential space
Segmentation Annual Home Loan Disbursal from Formal Sector
• Broad categories include Low cost/Mid market/
2002
Premium housing
2003
• Luxury segment growing annually at 25-30 per cent
2004
Outlook 2005
• Current shortage close to 25 million units, 2006
predominantly in middle and low income group 2007
• Expected to grow at CARG of 18 per cent to 2008 (E)
19 per cent upto by 2010 2009 (E)
• Mortage finance will be increasing penetration 2010 (E)
into the urban housing finance sector 2011 (E)
5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
US$ million
n Commercial Banks n HFCs n Coop Institutions
Source: Report of the 11th Five Year Plan (2007-12),Working Group on Urban Housing
Source:The Working Committee of the 11th Plan (2007-12)
www.ibef.org
8. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Retail space
Growth Drivers Growth of Retail Industry
• Rising consumerism with doubling of disposable FY2004 $210 billion
income FY2005 $2224 billion
• Growth in Organized Retailing FY2006 $238 billion
• Entry of international retailers
FY2010
Market Structure $306 billion
n Organized n Unorganizer
• Dominated by unorganised retail
• Large corporate houses entering the organized Source: Edeliwiss, EY Research
retail sector
• International retail brands are tying up with
Indian partners
www.ibef.org
9. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Retail space
Segmentation Absorption of Organised Retail Space
Total Absorption: 19 million sq. ft (2006-07)
• Organized retail contribution to the retail industry
grew from 2 per cent in 2003 to four to five per cent 6%
in 2007 4%
• International retailers are present through franchisee 9%
route
Outlook 12% 43%
• FDI norms are likely to be relaxed in next two to
three years 5%
• Oranised retail expected to grow at around
21%
30 per cent
• Share of organised retail, by sales expected to
reach 10 per cent by 2010 n NCR n Mumbai n Bangalore n Kolkata
n Pune n Chennai n Hyderabad
• By 2012, 323 million Sq.ft. of new retail space will
Source: EY estimates for top seven cities, KSA Technopak
be required.
Source: KAS Technopak, EY estimates
www.ibef.org
10. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Hospitality space
• Number of malls in India is expected to increase from
105 in 2006 to 412 in 2010
Growth Drivers
• More than 4.4 million international visitors
and 430 million domestic tourist visits in 2006
• Low cost airlines
• India recquiring recognition as a medical tourism
destination
• International events such as Commonwealth
Games
• Imergence of India as a MICE destination
Market Structure
• Entry of several corporate houses such
as Reliance
• Existing hotel operators are scaling up
their opetations
10 www.ibef.org
11. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Hospitality space
• Developers are tying up with major international
chains
• Developers have set up RE funds to finance their
Ventures
Segmentation
• Classification on the basis of Star Rating of 1 star
to 5 star deluxe
• Number of approved hotel rooms: 1,10,000 (including
approved projects), 30 per cent of this is in the five-
star segment
11 www.ibef.org
12. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Hospitality space
Outlook
• Indian tourism industry to grow by eight per cent per
annum over the next 10 years.
• Tremendous potential for budget hotels
• Service apartments, hospitals, wellness spas gaining
popularity.
• International hotel chains have big expansion plans
for India
1 www.ibef.org
13. MA R K E T OV E RV I E W
REAL ESTATE • December 2008
Special Economic Zones (SEZs)
• Under the new SEZ Policy, formal approvals Industry-wise classification of formally approved SEZs
have been granted to 462 SEZ proposals
• 222 have already been notified as SEZs, as on 11%
30th August 2007 4%
• Fiscal benefits to IT Parks expected to come to 5%
an end in 2009; SEZs likely to be preferred for 2%
IT/ITeS commercial office space development 5%
69%
• Policy allows usage of as high as 50 per cent of area as 4%
non-processing zone, offering immense potential
for residential other support infrastructure.
n Electronics Hardware, IT/ITES/Electronics/ n Pharmaceuticals
n Biotechnology n Gems Jewellery
n Engineering n Textile
n Others
1 www.ibef.org
15. PO L I C Y
REAL ESTATE • December 2008
Key regulations for FDI in real estate in India
Guidelines for FDI In Real Estate in India
Conditions for Development
• Minimum 10 hectares to be developed for serviced
housing plots
• For construction-development projects, minimum
built-up area of 50,000 square meters prescribed
• In case of a combination project, any one of the
above two conditions should suffice
• At least 50 per cent of project to be developed within
5 years from date of statutory clearances
1 www.ibef.org
16. PO L I C Y
REAL ESTATE • December 2008
Key regulations for FDI in real estate in India
Guidelines for FDI In Real Estate in India
Conditions for Investment
• Minimum capitalization of US$ 10 million for
wholly owned subsidiaries US$ five million for
joint ventures with Indian partners
• Infusion of funds within six months of
commencement of business
• Original investment cannot be repatriated before a
period of three years from completion of minimum
capitalization.
• Investor may be permitted to exit earlier with
prior Government approval
1 www.ibef.org
17. PO L I C Y
REAL ESTATE • December 2008
Key regulations for FDI in real estate in India
Guidelines for FDI In Real Estate in India
Miscellaneous Conditions
• Investor not permitted to sell undeveloped plots
• Project to conform to norms and standards laid
down by respective State authorities
• Investor responsible for obtaining all necessary
approvals as prescribed under applicable rules/
by-Iaws/regulations of the State
• Concerned Authority to monitor compliance
of above conditions by developer
1 www.ibef.org
18. PO L I C Y
REAL ESTATE • December 2008
FDI experience in Indian real estate
Key Highlights Real estate share in FDI
• Several global investors and developers keen on 2003-04
investing in India.
2004-05
• FDI inflows estimated to be US$ 19.5 billion in
FY2007 and, US$ 7.5 billion in the first five months 2005-06
of FY2008.
2006-07E
• FDI in the sector expected to touch US$ 25 to 0 1 2 3 4 5 6 7 8 9
28 billion by 2010. US$ billion
n Real Estate n Other Sectors
• US$ 16.3 billion FDI committed for real estate
projects Source: ASSOCHAM, EY Research
• Majority of the direct investment is from West Asia
with overall commitment of US$ 9.7 billion from
Dubai-based developers.
• Further, investors from US and Europe have shown
keen interest with the launch of several real estate
funds
1 www.ibef.org
19. PO L I C Y
REAL ESTATE • December 2008
FDI experience in Indian real estate
Key Highlights Major Countries investing in Indian Real Estate
• Majority of the direct investment is from West 2% 4%
Asia with overall commitment of US$ 9.7 billion 10%
from Dubai based developers
• Further, investor from USA and Europe have
shown keen interest with the launch of several 59%
25%
RE funds
n Dubai n Indonesia n Singapore
n Malaysia n Others
Source: Industry sources, EY Research
1 www.ibef.org
20. PO L I C Y
REAL ESTATE • December 2008
Regulatory interventions
Regulatory and Policy Interventions
Rationalization of process :
• Rationalization of the regulations in governance
affecting real estate
• For example, improved land records, rationalizing
stamp duty across states, simplifying urban
development guidelines etc.
Social Infrastructure:
• Focus from both public and private sector
• Different models for foreign investment
being evaluated
0 www.ibef.org
21. PO L I C Y
REAL ESTATE • December 2008
Regulatory interventions
Government incentives:
• SEZ Act, 2006 provides major Tax benefits,
Tax relief and Single window clearance and
approval
Urban Infrastructure Development:
• Focus on urban infrastructure
• Urban Reform schemes
* JNNURM
* City Challenge Fund
* Mega Cities Fund
1 www.ibef.org
22. PO L I C Y
REAL ESTATE • December 2008
Budget analysis
Union Budget 00 :
Impact On Real Estate
Policy Impact
• NHB to introduce reverse mortgage
• Senior citizens to receive monthly income against
their property
• They do no have to repay the loan
• Regulations for mortgage guarantee companies
• Guaranteeing mortgages on the behalf of the banks
and finance companies
www.ibef.org
23. PO L I C Y
REAL ESTATE • December 2008
Budget analysis
Union Budget 00 :
Impact On Real Estate
Direct Tax Impact
• Reduction in tax burden due to increase in threshold
limits on individual tax slabs
• No change in corporate income tax rates and
surcharge.
• 100 per cent tax holiday for five years for hotels and
convention centres in World Heritage sites if they
start functioning before March 31, 2013.
• 100 per cent tax holiday for five years anywhere in
India if they start functioning before March 31, 2013.
• No tax regime proposed for Real Estate Investment
Trusts.
www.ibef.org
24. PO L I C Y
REAL ESTATE • December 2008
Budget analysis
Union Budget 00 :
Impact On Real Estate
IndirectTax Impact
• General rate of excise duty reduced from 16 per cent
to 14 per cent.
• Excise duty revised on bulk cement from US$ 10 per
tonne to 14 per cent of assessable value or US$ 9.8
per tonne, whichever is higher.
• No change in service tax rate
• Seven new taxable services included in the service tax
net
• Decrease in customs duty rate on imports under
project import scheme from 7.5 per cent to five per
cent.
www.ibef.org
25. PO L I C Y
REAL ESTATE • December 2008
Business and investment models for FDI
Business Models
• Large Scale Direct Entry: Independent approach
for undertaking real estate projects
• Establishment of Umbrella Joint Venture:
Foreign developer/investor enters into a joint venture
with a local partner to carry out projects
• Multiple Joint Ventures: Joint ventures with
different local partners on project-to-project basis
• Investment through creation of Capital Fund :
Facilitating the local developers through funding
their ventures
www.ibef.org
26. PO L I C Y
REAL ESTATE • December 2008
Business and investment models for FDI
Investment Models Investment Models
Private Equity/Real Estate Funds :
Private Equity/
• The investors pick up equity stake in unlisted Real Estate
Funds
real estate firms and collaborate in business plans
• Lowers the transaction costs and provides an
Investment
easier exit route REMF REIT models Joint Venture
Joint Venture
• Long term partnerships or project-specific Wholly Owned
Subsidiary
• Mitigates the risk of entering the new market
Source: EY Analysis
www.ibef.org
27. PO L I C Y
REAL ESTATE • December 2008
Business and investment models for FDI
Wholly Owned Subsidiary:
• A relatively less preferred arrangement, few
overseas developers are developing projects
on a stand-alone basis
Public - Private Partnership:
• Government takes a proactive role and collaborates
with foreign developers
www.ibef.org
29. KE Y T R E N D S D R I V E R S
REAL ESTATE • December 2008
Indian economy: Overview
1) Accelerated yet stable reforms process India’s GDP over next two decades
• Broad consensus on importance of reforms
11-12 2004 650
• Reforms momentum continued despite changing 8%
6%
leadership especially in areas of FDI infrastructure 8-9 2014 1150
8%
) Robust economic fundamentals 4-6 2024
6%
2100
• Fourth largest economy in the world in terms of PPP 0 1000 2000 3000
• GDP growth rate of 9.4 per cent GDP US$ billion
• Forex reserves at US$ 204 billion
Source: EY Analysis, CII
• Services sector accounts for more than 50 per cent
of GDP, while manufacturing sector average growth
is at six per cent,
www.ibef.org
30. KE Y T R E N D S D R I V E R S
REAL ESTATE • December 2008
Indian economy: Overview
) Fast improving socio-economic profile
• Per capita GDP has increased by 66 per cent in the
past five years
• Favorable demographics with more than 60 per cent
of population estimated to be in the working age
(15-60 years) till 2050
• Growing lifestyle spending with increased expenditure
on consumer durables, eating out
and communications.
) Increased foreign investment
• India’s policy on foreign investment has been gradually
relaxed with sectors such as construction, telecom
and banking allowed. Another route of foreign
participation is portfolio investments.
0 www.ibef.org
31. KE Y T R E N D S D R I V E R S
REAL ESTATE • December 2008
Indian economy: Overview
• FDI inflows estimated to be US$ 19.5 billion in FY
2007 and US$ 7.5 billion in the first five months
of FY 2008
) Focus on infrastructure development
• India has a well developed road and rail network.
Large investments are underway in areas of:
- Highway development
- Air-connectivity (Domestic International)
- Upgradation of ports with their privatisation
- Power sector
1 www.ibef.org
32. KE Y T R E N D S D R I V E R S
REAL ESTATE • December 2008
The impact of macroeconomic factors
on demand supply of real estate
Economic Growth - Broad based GDP growth rate of 8-9 % per annum forecast
- Demand driven by the growth in services sector
- Growth expected to fuel demand across all the asset classes
Inflation - Has significant role in supply-demand of real estate
- Continues to remain a major concern
- Inflation is at its lowest since last year
Money Supply - Growth is higher than RBI estimates
- Liquidity is key to inflation and over-heating
- Restricted availability to reduce options for builders/developers
Interest Rates - Higher rates lead to higher cost of borrowing
- Developers seeking other options, consumers are re-evaluating options
- Investors are revaluing returns from the sector
Credit Take-off - Easy availability of capital has led to growth in valuations
- Concern over exposure of Banks towards the sector
- Restrictions have increased the cost leading to alternate sources like PE/VC
Government Policies - Liberalization of FDI has led to an interest from new players
- Valuation standards and greater transparency
- Service tax on commercial rental to affect retail space
Source: RBI, EY Analysis
www.ibef.org
33. KE Y T R E N D S D R I V E R S
REAL ESTATE • December 2008
Demand pull and supply push factors
Demand Pull Factors Supply Push Factors
Robust and sustained macro economic growth Policy Regulatory reforms (100 per cent FDI
Upsurge in industrial business activities, especially. Positive outlook of global investors
new economy sectors
Fiscal incentives to developers
Favorable demographic parameters
Simplification of urban development guidelines
Significant rise in consumerism
Infrastructure support and development by Government
Rapid Urbanization
Gamut of financing options at affordable interest rates Booming Indian
Real Estate Resultant Impact
Entry of number of Domestic Foreign players
increasing Competition Consumer affordability
Resultant Impact
Easy access to means of Project financing
Increasing occupier base
Increases developers risk appetite and allows large
Significant rise in demand for office/industrial space scale development
Demand for newer avenues for entertainment. Leisure Improved quality of real estate assets
shopping
Development of new urban areas and effective
Creation of demand for new housing utilization of prime land parcels in large cities
Source: EY Analysis
www.ibef.org
34. KE Y T R E N D S D R I V E R S
REAL ESTATE • December 2008
Market trends and outlook
Parameters Characteristics/ Trends Outlook
Growth Rate • High growth of around 30% in last five years • Expected to maintain the same growth in the medium term
(five to seven years)
Structure • Highly unorganized sector • Phase of consolidation expected in five to seven years
• Entry of numerous new players • Entry of large number of international players
• Preference towards strategic development alliances
Market Concentration • Highly concentrated within top six to eight cities in the • Growth to be driven primarily by Tier-II and Tier-III cities in
country the near future, across segments
• High concentration leading to significant property price • Emergence of at least 10 to 15 new cities as growth centers
rise in such cities • Increased development of planned cities
Competition • High competition with four to six key national players and • Shift in competition towards product focus/ differentiation
numerous regional players
Extent of Regulations • Moderate-No functional regulatory body • Stringent regulations expected to be introduced inline with
• Region/Location specific building laws international norms
• 100% FDI is allowed under the automatic route • Reforms in local development guidelines
www.ibef.org
35. KE Y T R E N D S D R I V E R S
REAL ESTATE • December 2008
Market trends and outlook
Parameters Characteristics/ Trends Outlook
Financing • 30 to 40 per cent annual increase in the home loan • Larger mortgage penetration
disbursements loan disbursals from Indian housing finance • Introduction of globally accepted instruments/modes such
companies as REITs
• Loan tenures have increased: 150 months (2001) to 173
months (2006) due to declining age of borrowers
Branding Penetration • Low-Commoditized market in most regions • Strong focus on brand development
• Brand-consciousness growing in Tier-I cities • Developers to have multiple brands focused on specific
product segments
Product Focus • Market driven product supply • Enhanced focus on need driven product supply
• Developers undertaking activities across asset classes • Emergence of firms with niche asset class focus
with not much differentiation between product classes
• More focus to cater to the premium end consumer
Ownership • Developers prefer to exit through sale to end consumer • Developers would start holding properties on a long-term
• Only few large developers prefer to hold properties. Most lease basis
developers prefer to sell
www.ibef.org
37. KE Y P L AY E R S
REAL ESTATE • December 2008
Select foreign investors
ASCENDAS, Singapore
• Present in India since 1997
• Established a wholly owned subsidiary, Ascendas
India Private Limited
• Operating 5 IT Parks across Banglore, Hydrabad
and Chennai having BUA of 4.4 million
• Plan to develop two new IT Parks in Pune and
Nagpur at a cost of US$ 375 million
• Ascendas Advantage India Development Fund for
US$ 325 million launched in 2007
• Ascendas India IT Fund for US$ 520 million launched
in 2005
www.ibef.org
38. KE Y P L AY E R S
REAL ESTATE • December 2008
Select foreign investors
EMAAR, Dubai
• Present in India since 2005
• Developing integrated township at Mohali over
3000 acres
• Plans to develop integrated townships, commercial
offices, IT Parks, SEZs and Hotels
• Planning to venture into healthcare and education
sector
• Joint Venture with MGF Development Limited, India
• EmaarMGF has JV with Accor Hotels (France)
Premier Travel Inn (UK)
• Capital outlay of US$ 4 Billion for group
projects in real estate in India
www.ibef.org
39. KE Y P L AY E R S
REAL ESTATE • December 2008
Select foreign investors
Salim Group, Indonesia
• Present in India since 2004
• Developing township at Howrah over 450 acres
• Plans to construct expressways and bridges, a
multi-product SEZ in Haldia and a Chemicals SEZ
in East Midnapore and Health and Knowledge
“cities”
• Joint venture with Unitech and Universal Success
• Plans to invest US$ 4.2 billion for projects
www.ibef.org
40. KE Y P L AY E R S
REAL ESTATE • December 2008
Select domestic players
Unitech
• Operating various asset classes in residential,
commercial and retail segment
• Developed more than seven million sq.ft. of built up
area (BUA)
• Specialises in planning residential, commercial,
SEZ development, retail and hospitality, integrated
townships
• 430 million sq.tf. of BUA under planned projects
• Major presence in National Capital Region and other
areas such as Kolkata, Chennai and Hyderabad
0 www.ibef.org
41. KE Y P L AY E R S
REAL ESTATE • December 2008
Select domestic players
DLF
• Largest real estate developer in India
• Developed Asia’s largest private township DLF
City at Gurgaon, Haryana spread over 3000 acres
• Present across all the asset classes : Residential,
Commercial and Retail.
• Developed more than 220 million sq.ft. of BUA
• Specialises in planning Hotels, Infrastructure and
SEZs 574 million sq. ft. of BUA under planned Projects
• Pan-India footprint, major presence in Gurgaon
Kolkata
1 www.ibef.org
42. KE Y P L AY E R S
REAL ESTATE • December 2008
Select domestic players
Ansal Properties
• Operates primarily in Residential Commercial
asset classes
• Developed over 2850 acres in Gurgaon and Delhi
• Developing integrated townships, malls, hotels IT
parks and SEZs
• Plan to construct 157.6 million sq.ft. of BUA
• Pan-India footprint with major presence in 16
North-Indian cities acress four states
www.ibef.org
43. KE Y P L AY E R S
REAL ESTATE • December 2008
Select key domestic players
K Raheja Corp
• Present in Commercial, Retail Residential
asset classes
• Developed over five million sq. ft. of BUA
• Developing 15 self-contained townships and
10 hotels
• Planning to construct 13.2 million sq. ft. of BUA
• Major presence in Mumbai with operations in
Banglore, Ahamedabad, Goa, Pune and Hyderabad.
www.ibef.org
44. KE Y P L AY E R S
REAL ESTATE • December 2008
Select key domestic players
Sobha Developers
• Asset classes include Residential, Commercial,
Development of plots and Contractual projects
• Developed over 4.5 million sq. ft. of BUA
• Planning residential and retail projects
• 101 million sq. ft. of BUA is planned under various
projects
• Major concentration in Banglore with presence in
other areas such as Cochin, Chennai and Pune.
www.ibef.org
45. KE Y P L AY E R S
REAL ESTATE • December 2008
Select key domestic players
Parsvnath Developers
• Presence in Residential, Retail Commercial
asset classes
• Developed over 3.8 million sq. ft. of BUA
• Plans to develop IT Parks and 12 SEZs across
the country
• Plannin to construct around 46.5 million sq. ft. of BUA
• Major Presence in National Capital Region
• Increasing Pan-India Footprint, active in over
46 cities across 17 states
www.ibef.org
47. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Missing asset classes and formats
Logistics Warehousing
• Booming trade, both International and Domestic
• Number of MNCs establishing Indian operations
• Agricultural logistics requiring creation of cold
chain infrastructure
• Logistics required for large infrastructure and
engineering projects
• Consolidation of warehousing if uniform tax
regime is applied
www.ibef.org
48. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Missing asset classes and formats
Healthcare Infrastructure
• Healthcare industry expected to grow at a
CAGR of 11.6 per cent over the next five years
• Healthcare BPO is growing at steady pace
• Medical infrastructure expanding with one million
beds to be added by 2012
• Medical tourism growth driven by low cost
and high quality services
www.ibef.org
49. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Missing asset classes and formats
Education Infrastructure
• Huge market with untapped potential and low
competition
• Lack of enough world class educational institutions
• Driven by Knowledge based industries, large
demand for qualified Engineers
• Research Laboratories adding value to Global
outsourcing trend
• Growing interest of leading global educational
institutions in setting up institutions in India
www.ibef.org
50. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Missing asset classes and formats
Low Cost Housing
• 72 per cent of the total population is still rural areas
• Current housing shortage of 22 million units
at an estimated cost of US$ 88 billion
• Increasing shift from rented to owned house
• Easy access to financing
• Nuclear families increasing the demand
for housing
0 www.ibef.org
51. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Appraisal of opportunities
• As India vaults from being an also-ran to a leader in
the global economy, Indian real estate industry is
poised to emerge as one of the most preferred
investment destinations for global realty and
investment firms.
• There are a few anticipated initiatives/actions, which
are likely to be instrumental in ensuring sustained
growth of the Indian realty sector in the medium
to long term.
• These engines for growth will act as a catalyst
for the real estate development across country.
• Some of these opportunities which is expected
to further drive the demand for the real estate
development are:
* Logistics and Warehousing Infrastructure
* Healthcare Infrastructure
* Low-cost Housing
1 www.ibef.org
52. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Logistics and warehousing
Rationale for Investment
• Healthcare delivery market expected to grow at a
CAGR of 11.6 per cent over the next five years.
• The total investment needed to reach the optimum
target of 1.85 beds per thousand population is US$
77.9 billion, out of which US$ 69.7 billion is expected
to come from private sector.
• An estimated one million beds would be added by
2012 taking the total beds available in the country to
over two million.
• The revenues currently generated by private hospitals
(all-inclusive) are US$ 15.51 billion.
• Medical tourism is estimated to emerge as a
US$ 2,000 million market by 2012.
www.ibef.org
53. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Logistics and warehousing
Key Challenges
• Relatively small manufacturing base – but growing
• Mindset and culture of outsourcing logistics
activities to capable third party operators is just
emerging
• In fact, there is no general awareness of standard
logistics practices and due to the protected
environment for Indian industries, until recently
there was no incentive for companies to improve
their operational performance
www.ibef.org
54. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Logistics and warehousing
Opportunities
• Booming trade – Domestic International
• As more MNCs establish their operations in
India, the need for good quality warehousing,
distribution and sourcing centres is on the rise
• VAT, if uniformly implemented, is expected to
change warehousing and distribution fundamentals
and is expected to consolidate warehousing needs
• Agriculture Logistics – proper cold chain
management and opportunity
• Logistics for large infrastructure and
Engineering Projects
www.ibef.org
55. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Healthcare infrastructure
Rationale for Investment
• Healthcare delivery market expected to grow at a
CAGR of 11.6 per cent over the next five years.
• The total investment needed to reach the optimum
target of 1.85 beds per thousand population is US$
77.9 billion, out of which US$ 69.7 billion is expected
to come from private sector.
• An estimated one million beds would be added by
2012 taking the total beds available in the country to
over two million.
• The revenues currently generated by private hospitals
(all-inclusive) are US$ 15.51 billion.
• Medical tourism is estimated to emerge as a
US$ 2,000 million market by 2012
www.ibef.org
56. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Healthcare infrastructure
Key Challenges
• Rapidly changing market
• Rising cost
• Low accessibility and unavailability of facilities
and services
• The sector would increasingly witness foreign
equity participation, Joint Ventures, Alliances and
Tie-ups among healthcare institutions resulting in
transfer of technology, skills and practices
www.ibef.org
57. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Healthcare infrastructure
Opportunities
• Healthcare BPO
• Medical Infrastructure
• Medical Value Travel
• Medical Devices
• Pathology Services
• Telemedicine
www.ibef.org
58. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Low–cost housing
Rationale for Investment
• Rural population of almost 72 per cent
• Huge market potential
• A housing shortage of 26.8 million units (2008)
and the need to invest over US$ 97.6 billion
over 10 years.
• Shift from rented to owned house
• Easy Access to financing
• Nuclear Families
• Government initiatives such as extension of
benefits u/s 80 I to mass housing projects,
scrapping of the Urban Land Ceiling Act,
implementation of the Securitization Act
www.ibef.org
59. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Low–cost housing
Case Study: SP Shukhobrishti
• India’s largest mass housing project,
SP Shukhobrishti, is being developed by the real
estate major, Shapoorji Pallonji, the project will
comprise of two enclaves named as ‘Spandan’
and ‘Sparsh’.
• The US$ 366 million project will comprise of
765 four storied apartments and 100 fourteen
storied apartments. Of the total 20,000 dwelling
units to be spread over an area of 150 acres,
19.999 will be allotted to lower income and
middle class income groups. The complex, SP
Shukhobrishti, is scheduled to be built in phases
and expected to be over by early 2011.
www.ibef.org
60. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Low–cost housing
• The Township will also have an array of facilities
including two primary schools, health centre,
shopping arcade, provision stores, community
centres, children’s play area, amphitheatre,
entertainment and two clubs.
• The Township will be located in Action Area-III
in the New Town of Kolkata.
0 www.ibef.org
61. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Illustrations of unlocking of land assets
National Commission recommendations for
formation or reorganization of Institutions
• Public Sector Units assessing their land holdings
for commercial exploitation
• Public Sector estimated to have more than 45,000
hectares of under-utilized land
• VSNL – 300 Ha
• IDPL – 1000 Ha
• LIC – 400 Ha
• HIL – 20 Ha
• National Textile Corporation–280 Ha
• Indian Railways – 43,000 Ha
1 www.ibef.org
62. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Illustrations of unlocking of land assets
Private sector also plans to exploit their land
banks
• Private sector units assessing their land holdings
to exploit them commercially.
• Industrial houses are developing excess land
adjacent to industrial sites
• Major private groups include Mukand. IVRCL,
Kilburn Engineering, Unichem, Indo Rama,
Raymonds, Alembic Glass
www.ibef.org
63. KE Y O P P ORT U N I T I E S
REAL ESTATE • December 2008
Illustrations of unlocking of land assets
Real Estate Development by Delhi Metro Rail
Corporation
• Adopts a PPP model
• It leases out the land and private developer develops
retail and commercial offices
• Earned US$ 66 million from real estate segment
and only US$ 25 million from traffic operations
• Real estate contribution increased from six per
cent to 25 per cent for funding future expansion of
network
www.ibef.org
65. RI S K S A N D C O N C E R N S
REAL ESTATE • December 2008
Key risks and concerns
Overheating market
• On the macroeconomic front, inflation has risen
sharply from 3.9 per cent in April 2006 to 6 per cent
in April 2007
• On the real estate front, persistent demand-supply
gap has led to spiraling property prices
• Capital values risen by more than 100 per cent in all
key markets
• Oversupply expected in few product classes
– IT SEZs, Luxury end residential
www.ibef.org
66. RI S K S A N D C O N C E R N S
REAL ESTATE • December 2008
Key risks and concerns
RBI’s measures to cool the real estate market
Change in preference share policy
• Foreign investment coming as non-convertible,
optionally convertible or partially convertible
preference shares would be considered as
debt and shall require compliance with ECB
guidelines
Change in ECB Policy
• Utilization of ECB proceeds is no longer
permitted in real estate; exemption granted to
integrated townships has been withdrawn
Risk weightage increase
• In 2006, RBI increased the risk weightage on
bank exposures to commercial real estate from
125 per cent to 150 per cent
www.ibef.org
67. RI S K S A N D C O N C E R N S
REAL ESTATE • December 2008
Key risks and concerns
Rising interest rates
• RBI has implemented various monetary measures
to curb inflation and growth in credit to real
estate
• These have caused home loan interest rates to
increase from 8.25 per cent in 2004 to 8.75 per cent
in 2005 to 9.5 per cent in 2006 to 10 per cent in Jan
2007 and to 12.75 per cent at present
• Rising interest rates may cause higher loan
defaults
Absence of REITs
• REITs are a significant source of capital and
liquidity for real estate industry globally
• Absence of REITs in India has restricted retail
investor participation and limited capital flows
www.ibef.org
68. RI S K S A N D C O N C E R N S
REAL ESTATE • December 2008
Key risks and concerns
Regulatory issues
• ULCRA is yet to be repealed in some key states,
such as Maharashtra, Karnataka and West Bengal
• Stamp duty rates are still high in many states
resulting in high transaction costs
• Tenancy laws are not in favor of owner
Unclear titles
• A high percentage of land holdings do not have
clear titles
• Land is typically held by individuals/families,
which hinders easy transfer of title
www.ibef.org
69. RI S K S A N D C O N C E R N S
REAL ESTATE • December 2008
Key risks and concerns
Time-consuming Approval
• Approvals required from multiple agencies,
• Time consuming and circuitous procedures
• Leads to project delays and affects marketability
of projects
High Dependence on NRIs
• Certain pockets are heavily dependent on NRI money
• Leads to speculation and an asset bubble kind
of situation
• Prices become prohibitively expensive for
domestic consumers
www.ibef.org
70. RI S K S A N D C O N C E R N S
REAL ESTATE • December 2008
Key risks and concerns
Speculative Supply
• Certain pockets witnessing speculative supply
• Some pockets are purely investor driven,
end-user and genuine consumers suffering
• Oversupply leading to downward pressure on
prices - “price correction”
Overindulgence
• Overindulgence of Developers on asset
classes which are not demand driven
• Overstretched commitments and hence
quality risks
0 www.ibef.org
71. RE A L E S TAT E
December 2008
DISCLAIMER
This presentation has been prepared jointly by the Author’s and IBEF’s knowledge and belief, the content is not
India Brand Equity Foundation (“IBEF”) and Ernst Young to be construed in any manner whatsoever as a substitute for
Pvt. Ltd. (“Authors”). professional advice.
All rights reserved. All copyright in this presentation and related The Author and IBEF neither recommend or endorse any
works is owned by IBEF and the Authors. The same may not be specific products or services that may have been mentioned
reproduced, wholly or in part in any material form (including in this presentation and nor do they assume any liability or
photocopying or storing it in any medium by electronic responsibility for the outcome of decisions taken as a result
means and whether or not transiently or incidentally to some of any reliance placed in this presentation.
other use of this presentation), modified or in any manner
Neither the Author nor IBEF shall be liable for any direct or
communicated to any third party except with the written
indirect damages that may arise due to any act or omission
approval of IBEF.
on the part of the user due to any reliance placed or guidance
This presentation is for information purposes only. While due taken from any portion of this presentation.
care has been taken during the compilation of this presentation
to ensure that the information is accurate to the best of the
www.ibef.org
1