Investment Research Notes
ab
Global Economics Research
Emerging Markets
UBS Investment Research
Emerging Economic Focus
The India Property Primer
(Transcript)
Hong Kong
23 June 2011 www.ubs.com/economics Jonathan Anderson
They are ill discoverers that think there is no land when they can see nothing but sea.
– Francis Bacon
Economist jonathan.anderson@ubs.com +852-2971 8515
Suresh A Mahadevan, CFA
Analyst
suresh.mahadevan@ubs.com
+91-22-6155 6066
Ashish Jagnani
Analyst
ashish.jagnani@ubs.com
+91-22-6155 6061
Everything you wanted to know about Indian property
Most investors – and certainly Asian investors – are increasingly aware of the Chinese property market; given its importance in driving growth in the overall economy, its extraordinary influence on commodity demand and its already substantial presence on listed markets there’s almost no way to avoid delving into the minutiae of weekly price and sales figures or the state of developer finance.
But what about that other populous, fast-growing Asian giant, i.e., India? India does have an active property sector, but one that has only just started to cross investors’ radar screens in the past couple of years. So it was with great enthusiasm that we received India property analyst Ashish Jagnani’s recent omnibus report
Changing Landscape (UBS India Real Estate Research, 11 May 2011), with a lengthy discussion of the underlying state of the market. And subsequently we asked Ashish and India equities head Suresh
Mahadevan to join the weekly EM call to summarize their views.
We learned three things. First, the sector is still very fragmented, with a notable lack of transparency and institutional funding. Independent market data are very hard to come by, and geographical conditions vary significantly. And developers only began to be listed in 2007, so investors are still “coming up the curve” on housing and commercial trends.
Second, however, at the macro level we just can’t ignore
Global Economics Research
Emerging Markets
UBS Investment Research
Emerging Economic Focus
The India Property Primer
(Transcript)
Hong Kong
23 June 2011 www.ubs.com/economics Jonathan Anderson
They are ill discoverers that think there is no land when they can see nothing but sea.
– Francis Bacon
Economist jonathan.anderson@ubs.com +852-2971 8515
Suresh A Mahadevan, CFA
Analyst
suresh.mahadevan@ubs.com
+91-22-6155 6066
Ashish Jagnani
Analyst
ashish.jagnani@ubs.com
+91-22-6155 6061
Everything you wanted to know about Indian property
Most investors – and certainly Asian investors – are increasingly aware of the Chinese property market; given its importance in driving growth in the overall economy, its extraordinary influence on commodity demand and its already substantial presence on listed markets there’s almost no way to avoid delving into the minutiae of weekly price and sales figures or the state of developer finance.
But what about that other populous, fast-growing Asian giant, i.e., India? India does have an active property sector, but one that has only just started to cross investors’ radar screens in the past couple of years. So it was with great enthusiasm that we received India property analyst Ashish Jagnani’s recent omnibus report
Changing Landscape (UBS India Real Estate Research, 11 May 2011), with a lengthy discussion of the underlying state of the market. And subsequently we asked Ashish and India equities head Suresh
Mahadevan to join the weekly EM call to summarize their views.
We learned three things. First, the sector is still very fragmented, with a notable lack of transparency and institutional funding. Independent market data are very hard to come by, and geographical conditions vary significantly. And developers only began to be listed in 2007, so investors are still “coming up the curve” on housing and commercial trends.
Second, however, at the macro level we just can’t ignore