3. Before…
Real estate in India was
unorganized.
Lack of uniformity in local After…..
laws and their application.
Non availability of bank Greater organization and
transparency.
financing, high interest Greater availability of
rates, and transfer taxes . financing for real estate
developers.
Lack of transparency in Regulatory changes permitting
transaction values. foreign investment.
Hightened consumer
expectations influenced by
higher disposable incomes.
Increased globalization.
4. key growth driver of the country’s economy.
One of the highest FDI-attracting sectors in India.
Growth in the services sector
DLF, Unitech, AnsalProperties, K. Raheja Corporation and
Parsvnath Developers
Emaar, Ascendas, Keppel Land, Tishman Speyer and Nakheel
Group.
6. Demand pull factors:
Robust and sustained macroeconomic growth
Upsurge in industrial and business activity,
especially in new economy sectors.
Favorable demographic parameters.
Significant rise in consumerism.
Rapid urbanization.
Availability of a range of financing options at
affordable interest rates.
7. Impact of demand pull factors:
Increasing occupier base.
Significant rise in demand for office/industrial
space.
Demand for new avenues for entertainment, leisure
and shopping.
Creation of demand for new housing.
8. Policy and regulatory reforms
Positive outlook of global investors.
Fiscal incentives to developers.
Simplification of urban development guidelines.
Infrastructure support and development initiatives from the
GoI.
9. Impact of supply push factors:
Entry of several domestic and foreign players; increasing
competition and consumer affordability.
Easy access to project-financing options.
Increased developers’ risk appetite and large-scale
development.
Improved quality of real estate assets.
Development of new urban areas and effective utilization of
prime land parcels in large cities.
10. High growth projections
Multiple growth drivers
Rapid evolution of the sector
Increased foreign investments
Well defined regulatory framework
Demand for affordable housing
11. Modification in the rent control act to provide greater
protection to home owners wishing to rent out their properties.
Rationalization of property taxes in a number of states.
The proposed computerization of land records.
13. The confederation of real estate developers association of
India(CREDIA)
Builders Association of India
14. DEMAND DRIVERS
The trends have benefited from substantial recent
growth in Indian economy, which has stimulated
demand for land and developed real estate across the
real estate industry.
19. Residential Real Estate Development
By rising disposable incomes
Rapidly growth middle class
Low interest rates
Fiscal incentives
Hightened customer expectations
20. Retail Real Estate Development
By demographic factors
By increasing disposable incomes
Changes in shopping habits
Entry of international retailers
Growing no. of retail malls
21. Tourism and Hospitality
The hotel industry in India has grown as a result of Growing
economy, increased business travel and tourism
The hospitality segment has witnessed robust demand
growth, primarily due to strong growth in tourism, including both
business and leisure travel.
India is becoming increasingly popular as a medical tourism
destination.
Hospitality players are diversifying into budget hotels and
service apartments.
22.
23. 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
24. 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.
25. 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
26. Key Highlights
• Several global investors and developers keen on
investing in India.
• FDI inflows estimated to be US$ 19.5 billion in
2007 and, US$ 7.5 billion in the first five
months
of 2008.
• FDI in the sector expected to touch US$ 25 to
28 billion by 2011
27. 2006-2007
2007-2008
real estate
2008-2009
other sectors
2009-2010
0 5 10 15
Real estate share in FDI
28. Key Highlights
• Majority of the direct investment is from West
Asia with overall commitment of US$ 9.7 billion
from Dubai based developers.
• Further, investor from USA and Europe have
shown keen interest with the launch of several RE
funds.
29. 2%
4%
10%
Dubai
Indonesia
25%
59% Singapore
Malaysia
others
Major countries investing in
Indian Real Estate
30. 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.
31. 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
32. 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.
33. 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
34. 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
39. Foreign Funds.
Real Estate Exposure Of Banks.
40.
41.
42.
43.
44. Geographic de-concentration of
real estate activity from large metros.
Green buildings are gaining popularity.
Affordable housing is still the buzzword.
Recovery in demand for luxury projects.
45. Growth not only in the metros, Also in the
surrounding regions.
The suburban areas developing at a faster
pace .
Global Investors Interested in Indian Real
Estate: Cushman & Wakefield
NRIs and foreign investors eyeing Indian
property as lucrative
World’s renowned banks like Morgan
Stanley, etc. now investing in the Indian
Real Estate market.
Tremendously hiked prices and large
returns assured.
46. Steady expansion and development in the IT
sector of India.
Adoption of Foreign Direct Investment (FDI)
policy.
Easy access to bank loans.
Growth in Indian economy.
47. Pune
Nagar Road - the preferred location.
Economically vibrant areas of the city on the
Eastside.
Development taking place and the name is gaining
national and even international prominence.
Nagar Road is experiencing the full impetus of
development in all important respects.
Growing IT/ITES/BPO sectors
along with the rapid
improvement of physical and
social infrastructure in city
48.
49. Bangalore
The Metro countdown is on.
Next couple of years - the metro network is scheduled to be
complete.
The Metro promises to be a game changer for the city’s
property sector.
The Outer Ring Road (ORR) and the six-laning of Bellary Road
The prospects from the Metro are much more.
While these roads brought connectivity
to specific localities in the
vicinity, the Metro networks
the entire city.
50.
51.
52. Suffer in second half of the current
financial year.
Drop in home sales and a slowdown in
office leasing transactions.
Mumbai and NCR home state decline
due to high home loan rates and
property prices.
53. Attaining a twofold increase.
Market experts predict that the coming years
will witness a boon in the Indian Real Estate
Scenario
Property business will turn out to be a cash
processing machine.
Anyone investing in
property is sure to reap
large profits.
54.
55. COMPANY PROFILE
Conglomerate of 35 companies
with Ansal API, AHCL, ABL
All three engages in real estate
ZZ
development activity
Employing 5000 People nation
wide
All three companies have acquire
the ISO 9001-2000 certificate
56. FUTURE PROSPECTS
Intend to shift its focus to value
added development or constructed
property
Expansion into hospitality
Focus on premium location in TIER
211 cities of north India
57.
58.
59. Establishment
•Established in 1972 by
unitech
group of Engineers
•Initially started
consultancy firm for soil
and foundation
engineering
•Established Real Estate
Business in Gurgaon in
1986.
60. Mr. Ramesh
Chandra the
COMPANY PROFILE Executive
Chairman of
Unitech
The group’s principal
activities are:
Construction Ajay Chandra, son
Real estate development of Mr. Ramesh
Consultancy in related Chandra, is
Managing Director
areas. of Unitech.
Hotels
Information technology
Sanjay Chandra, the
Electrical transmission other son of Mr.
Ramesh Chandra, is
also Managing
Director of Unitech
61. FUTURE PROSPECTS
Achieve high growth by
establishing a pan India
presence
Focus on major
economical centers
Focus on profitable
projects that maximize
returns
Undertake large mixed-
use projects like
integrated township in the
suburbs of main cities.
62. …since 1990
Parsvnath Developers Ltd.
Company PDL is one of the leading real
estate companies in India
profile:
Diverse business portfolio of
commercial
complexes, shopping
mall, integrated township and
group housing
Strengthening its position in
core operations if real estate
First real estate company to
achieve a NAREDCO-ICRA DR 2-
PDL rating
Chairman: Pradeep Jain
63. …since 1990
Parsvnath Developers Ltd.
Future Plans to have at least 17 hotels
across 13 cities operational by
prospects: 2011
Expanding footprints in newer
locations across India
Participation in re-development
of land
Exploring possibilities of power
generation & distribution.
Exploring infrastructural projects
PDL
Chairman: Pradeep Jain
64. …since 1990
Parsvnath Developers Ltd.
Marketing PDL has a pan-India presence
Network: and an experience of more than
17 year in offering state of the
art construction
PDL
Chairman: Pradeep Jain
65. …since
1989
COMPANY PROFILE:
Began life as a civil construction
and contracting company
Executed more than 120
Industries, Institutional, Commercia
ls, Residential & Hospitals.
Entered
business in 2001
Rohtas Goel, CMD, Omaxe Ltd
66. …since
1989
FUTURE PROSPECTS:
Planning to invest Rs. 20 billion in its
hotel project in 11 cities across India.
Also planning a Rs 20-30 billion
in Punjab.
Also planning to invest 2 billion in
DUBAI Real Estate projects
They have exhaustive plans to
upgrade living environs of smaller
cities in North India in next 5 years.
67. Company profile:
Pioneered the concept of truly
international quality in construction
industry.
ensured consistent international quality to
costumers resulting the industry
benchmark for international quality
Built residential, contractual and
commercial projects
Accepted as the industry benchmark for
Year of Establishment : world class building techniques and quality
1995 By Mr. P N C standards
Menon Enjoys an ever widening reputation for
reliability, dependability and honesty
68. Future Prospects:
They anticipate building a presences in
varied industries including hotels and
resorts. Hypermarkets, Home stores and
building materials.
Year of Establishment :
1995 By Mr. P N C
Menon
69. ...commended operation in India in
2005
Company profile:
It’s a joint venture b/w Emmar properties PJSC of Dubai and MGF Development Ltd.
Development in residential, commercial, retail and hospitality sectors
Also identified healthcare, education and infrastructure as business line
Aspects of real estate development , such as land identification and acquisition, projects planning, designing, marketing and execution
70. …since 1917
Company Profile:
The firm
represents
Involved in clients in
every stage of buying, selling
the real estate , financing, lea
It has 195 process, from sing, managin
offices in 55 strategy to g and valuing
countries execution assets
around the
Largest
globe and
privately
11,000+
held real
talented
estate in
professional
71. …since 1917
Future Prospects
Cushman & Wakefield
India offers a full range
of real estate services
combining local • Consultancy Services
expertise and
• Transaction Services
experience with
technology and • Capital Markets Group
standards of service that • Client solutions
are well established and
consistent across all • Project Management
Cushman & Wakefield's • Facilities and Property Management
offices worldwide. Our
main service offerings
are:
72. There is a shortage of 12 million housing units in
urban areas
There is a scope for 400 township projects over
the next five years spread across 30 to 35
cities, each having a population of 0.5 million
Total project value dedicated to low and middle
income housing in the next seven years is
estimated at USD 40 billion
Instrumental such as mortgage-backed
security(MBS)
Commercial and collateralized debt
obligations(CDO) are being use to make capital
work more efficiently
