political,social,legal,technological,economical,environmental analysis of Real Estate sector in INDIA

1. PESTLE analysis on Real Estate
Introduction
 It is estimated that the size of the real estate sector may increase five-
fold to reach USD676 Billion by 2025.
 Real estate firm DLF Ltd,Supertech Ltd,Jaypee infratech Ltd,Ansal
Properties & infrastucture Ltd,Parasvanath developers
Ltd,Unitech,Omaxe Ltd and so on has been playing a significant role
in shaping up the real estate since inception.
 The Make in India initiative has helped to accelerate leasing of
commercial property by the manufacturing sector.
 India’s Prime Minister Mr Narendra Modi approved the launch of
Housing for All by 2022.
Source-
https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublication
s/Documents/Indian-real-estate-Opening-doors.pdf

2. Political Analysis
 The Smart City Project
 The Make in India initiative.
 Brihanmumbai Municipal Corporation (BMC) has
introduced a single-window clearance for construction
 The Securities and Exchange Board of India (SEBI) has
proposed easier regulations for real estate investment
trusts (REITS)
 The Rajya Sabha or the Government of India has brought
into force the Real Estate (Regulation and Development)
Act, 2016.
Source-
http://www.ibef.org/industry/real-estate-india.aspx

3. Environmental analysis
 Okhla Bird Sanctuary
As per the new draft notification, no new commercial
Activity will be allowed within the eco
sensitive zone.
The local economy had lost about Rs 2000 crore in
several months of the ruling.
Projects of 45 developers including Jaypee, Amrapali,
ATS, Logix, Ajnara etc were impacted.
Panic among consumers.
Sales Of inventories and progress of several projects
drastically effected
Source- http://indianrealtybytes.com/real-estate-content/okhla-
bird-sanctuary-ngt-order-impact-noida-properties/

4. Sociological Environment
 Demographic:
India represents 17.5% of the global population.
 Education:
The adult literacy rate in 2006 was 62.8%
 Health:
In India, 29.8% population lives below the national poverty line
in 2010.
 Jobs in India:
The employment rate in 2011 for the population aged 15 and
above is 53.6%.The unemployment rate of labour force is of 3.6%
Source- http://www.slideshare.net/loubriot/pestel-version
finale?qid=7d3f7f12-563c-4a26-856d-effcb080e4e9&v=&b=&from_search=9

5. TECHNOLOGICAL ENVIRONMENT
 Usage of internet for booking, renting and buying property
online. Some of the top players of web based real estate
companies are 99acres, Housing.com and
commonfloor.com
 Change in construction pattern over the years which
resulted in high raised earthquake resistant buildings.
 Usage of pre fabricated constructions and dry wall
technology have been introduced to India Malaysia,
Thailand and China.
 Studio apartments are in trend for fully automated
functioning.
Source-Linkedin.com

6. LEGAL ENVIRONMENT
Introduction of Real Estate regulatory bill
 Depreciation
 Consolidated Financial Statement (CFS)
 Dividend
 Financial statements authentication and board’s report
Corporate Social Responsibility (CSR)
 Restrictions on non-cash transactions involving
directors
 Loans and investments by company
Sources-https://indiacode.nic.in>2016>201616

7. ECONOMICAL ENVIRONMENT
 New investments proposed by the government such as
Rs 7,060 crore to build 100 smart cities.
 Investment friendly tax reforms can act as an
economical tool to revive almost dead India economy.
 Ease of availability of financiers will aid the
government in achieving its ‘home to all by 2022’
program.
 FDI norms have been modified to attract foreign
players in Real Estate sector.
Source-Linkedin.com

8.  The smart city project and the make in India campaign has
created a positive image of India at international level
 The rapid urbanisation has played a key role in growth of
real estate which is not just pushing the building blocks
but also introducing western technology and machinery
usage for providing the dream home to consumers.
 Now looking overall analysis and introduction of real
estate bill is a big milestone achieved by government which
would be building the gap between consumers and
developers which would result in increased GDP
contribution of real estate industry into Indian economy.