Real Estate Market and Indian Economy Essay

Real Estate

2013

MARCH

Intended for updated data, please visit www.ibef.org

1

Real estate property

2013

03

Contents

 Advantage India  Marketplace overview and trends  Growth individuals  Success stories: DLF, Godrej Properties  Opportunities  Useful details

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Real Estate

Advantage India

2013

MARCH

Developing demand

Attractive options

2015E

Market size: USD126 billion dollars

Demand for residential property has gone up due to elevated urbanisation Developing economy traveling demand for commercial and retail space

Developing requirements of space by sectors just like education and healthcare

Expansion in travel and leisure providing options in the hospitality sector

Advantage India

Increasing investments

Policy support

FDI in real estate of more than USD11. 25 billion dollars between April 2000 and might 2012 In FY12, the real estate sector accounted for 2 . 0 per cent of total FDI inflows in to India

Share of USD625 million intended for rural housing FDI up to 100 percent allowed with government permission for expanding townships and settlements

2010-11

Market size: USD55. six billion

Source: BMI (Business Monitor International), Aranca Study Data to get FDI can be from Division of Industrial Coverage and Campaign; Notes: FDI - International Direct Purchase; 2015E -- Estimate for 2015 (estimates by BMI)

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EDGE INDIA

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Real Estate

2013

MARCH

Articles

 Benefit India  Market overview and tendencies  Progress drivers  Success stories: DLF, Godrej Real estate  Chances  Useful information

For updated info, please visit www.ibef.org

4

Property

2013

MAR

Segments in the Indian property sector

Home space

• Fragmented industry with couple of large players • Demand of above 300, 500 units inside the seven main cities this season

Commercial space

• Handful of players with presence around India • Over 38. 2 , 000, 000 sq foot demand in 7 major cities this summer

Real estate sector

Retail space

• FDI in multi- brand selling to boost demand

• Fragmented market with few national players • Demand of around 12-15 million sq ft in major metropolitan areas during 2011

Hospitality space

• A competitive marketplace with many players

• Above 121, 500 hotel rooms near your vicinity as of 2011

SEZs

• 589 SEZs have been given the green light by the government until now • Most of SEZs will be in the IT/ ITeS sector Source: Cushman and Wakefield, Knight Outspoken, CRISIL, Aranca Research Notes: SEZ -- Special Economic Zone. THAT - I . t, ITeS - Information Technology Empowered Services

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MARKET SUMMARY AND DEVELOPMENTS

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Real estate property

2013

03

Indian real estate is a significant, growing marketplace …

Real estate has contributed about your five per cent to India's GDP The total earnings generated in FY1 stood at USD66. 8 you billion Note: CAGR stands for Compounded Twelve-monthly Growth Charge

Market scale real estate in India (USD billion)

66. almost eight 53. three or more 55. 6th

50. you

FY08

FY09

FY10

FY11

Source: BMI, Aranca Study

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INDUSTRY OVERVIEW AND TRENDS

6th

Real Estate

2013

MARCH

… with significant room for even more growth

The enclosure shortage in urban India stood in 20. 5 million since 2010 The housing shortage in countryside India stood at 21 million since 2010 The housing shortage in urban and country India will be around twenty-one. 7 and 19. 7 million products respectively in 2014 Significant increase in real estate activity in cities like Indore, Raipur, Ahmadabad, Jaipur and other two-tier cities; this has opened new avenues of growth to get the sector

Urban-rural enclosure shortage (million)

34

30. one particular 26. several 18. four 19. three or more 20. your five 26 21. 7 nineteen. 7

15. you

2001

2005 Metropolitan

2008 Non-urban

2010

2014E

Source: BODY MASS INDEX, CRISIL, Aranca...

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