Overview of Real Estate Industry
For updated information, please visit www.ibef.org
NOVEMBER
Real Estate 2011
Contents
? Advantage India
? Market overview and trends
? Growth drivers
? Success stories: DLF, Godrej Properties
? Opportunities
? Useful information
For updated information, please visit www.ibef.org
NOVEMBER
Real Estate 2011
Advantage India
2015E
Growing demand
Demand for residential property has gone up due to increased urbanisation
Growing economy driving demand for commercial and retail space
Attractive opportunities
Growing requirements of space from sectors such as education and healthcare
Growth in tourism providing opportunities in the hospitality sector
Market size: USD126 billion
Advantage
India
Increasing investments
FDI of more than USD9 billion in real estate in the last decade
In 2010, over 11 per cent of total FDI in India was in the real estate sector
2010
Market size: USD55.6 billion
Policy support
Allocation of USD625 million for rural housing
FDI up to 100 per cent allowed with government permission for developing townships and settlements
Source: BMI (Business Monitor International), Aranca Research Notes: FDI – Foreign Direct Investment 2015E – Estimate for 2015 (estimates by BMI)
For updated information, please visit www.ibef.orgADVANTAGE INDIA3
NOVEMBER
Real Estate 2011
Contents
? Advantage India
? Market overview and trends
? Growth drivers
? Success stories: DLF, Godrej Properties
? Opportunities
? Useful information
For updated information, please visit www.ibef.org
NOVEMBER
Real Estate 2011
Segments in the Indian real estate sector
Residential space
Commercial space
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Real estate||Retail space||
sector||||
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Hospitality space
SEZs
Fragmented market with few large players
Demand of over 300,000 units in the seven major cities in 2010
Few players with presence across India
Over 30 million sq ft demand in 7 major cities during 2010
Fragmented market with few national players
Demand of over 2 million sq ft in 7 major cities during 2010
A competitive market with many players
Over 100,000 hotel rooms in the country as of 2010
Over 550 SEZs have been approved by the government so far
Majority of SEZs are in the IT/ ITeS sector
Source: Cushman and Wakefield, Aranca Research SEZ stands for Special Economic Zone Notes: SEZ – Special Economic Zone. IT – Information Technology,
ITeS – Information Technology Enabled Services
For updated information, please visit www.ibef.orgMARKET OVERVIEW AND TRENDS5
NOVEMBER
Real Estate 2011
Market is growing; demand outstripping supply in urban areas (1/2)
→? Real estate contributes about 5 per cent to India’s GDP
→? The total revenue generated in FY11 stood at USD66.8 billion
Note: CAGR stands for Compounded Annual Growth Rate
Market size of real estate in India (USD billion)
|CAGR:|66.8||
|10 %|||
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50.1|53.3|55.6||
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FY08FY09FY10FY11
Source: BMI, Aranca Research
For updated information, please visit www.ibef.orgMARKET OVERVIEW AND TRENDS6
NOVEMBER
Real Estate 2011
Market is growing; demand outstripping supply in urban areas (2/2)
→? The housing shortage in urban India stood at 20.5 million as of 2010
→? The housing shortage in rural India stood at 26 million as of 2010
Urban-rural housing...
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