Overview of Real Estate Industry

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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

||||
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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