Real Estate Scene in India

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CONTENTS

PARTICULARS PAGES

Introduction 4
I.Indian real estate market 5-22

II.Business strategy of Godrej Properties Ltd. 23-30

References 31

INTRODUCTION :

This project report on Indian real estate market & Business strategy of Godrej Properties Ltd. has been written as a part of the PGCBM course at the XLRI, Jamshedpur. The report analyzes an overview of Indian property and real estate market with focusing on one of the major real estate player – Godrej Properties Ltd. & its business strategy. The study is the result of secondary and primary research. The secondary research was primarily based on the internet resources like the websites of Godrej Properties Ltd. and other property websites & news letter apart from that it also covered general news articles, research studies and analyst reports (refer to References). The primary research involved an empirical study in which I targeted more than 200 people who have worked with Godrej Properties Ltd. & other real estate firm & broker company officials. I contacted people from senior level to entry level by using social networking websites, such as facebook and orkut. A questionnaire including both open-ended and closed-ended questions was sent to the target people for their feedback. I also contacted them physically and over phone in order to complete the assignment.

I.INDIAN REAL ESTATE MARKET:
The real estate sector in India is on a growth path. The development in the real estate market encompasses growth in both commercial and residential spheres. Further, it has been estimated that there would be shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12), which provides a big investment opportunity, according to a report by the Technical Group on Estimation of Housing Shortage.

Indian Real Estate: Investments

During April-September 2011-12, the Indian real estate and housing sectors received US$ 453 million in foreign direct investment (FDI), according to the Department of Industrial Policy and Promotion India (DIPP). Further, the industry also witnessed growth in private equity (PE) investments as well. In the current calendar year so far (November 13, 2011), total investment from PEs was around US$ 741 million. According to a report by Jones Lang LaSalle (JLL), about US$ 15.8 billion has been invested from 2006 till date on various types of assets in the real estate sector in the country. Of which, US$ 2.7 billion went to residential projects and US$ 2.4 billion to township projects. A sum of US$ 2.3 billion went to commercial projects, US$ 2.1 billion to mixed use and US$ 961.4 million to special economic zones (SEZs). During the current year, PEs invested US$ 320 million in commercial, US$ 65 million in mixed use, US$ 44 million in residential, US$ 190 million in SEZs and US$ 122 million in township projects. During 2011, Hyderabad attracted the highest investment of US$ 190 million followed by Chennai US$ 143 million, NCR (national capital region) US$ 66 million and Bangalore US$ 22 million, as per the JLL report.

THE GLOBAL ECONOMY GROWTH ENGINE :

When developed markets (US / Europe / Japan) are growing at flat or in the 1s and 2s of percentage points, the Indian economy has been growing at rates in the range of 6 per cent to 10 per cent over the past decade. The demographic dividend in the form of highly skilled workers, the IT revolution, the Indian consumption...
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