Real Estate Market and Indian Economy

Topics: Real estate, India, Tourism Pages: 39 (3945 words) Published: August 25, 2013
Real Estate

2013

MARCH

For updated information, please visit www.ibef.org

1

Real Estate

2013

MARCH

Contents
 Advantage India  Market overview and trends  Growth drivers  Success stories: DLF, Godrej Properties  Opportunities  Useful information

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2

Real Estate
Advantage India

2013

MARCH

Growing demand


Attractive opportunities


2015E
Market size: USD126 billion

Demand for residential property has gone up due to increased urbanisation Growing economy driving demand for commercial and retail space

Growing requirements of space from sectors such as education and healthcare





Growth in tourism providing opportunities in the hospitality sector

Advantage India
Increasing investments


Policy support


FDI in real estate of more than USD11.25 billion between April 2000 and May 2012 In FY12, the real estate sector accounted for 2.0 per cent of total FDI inflows into India

Allocation of USD625 million for rural housing FDI up to 100 per cent allowed with government permission for developing townships and settlements





2010-11
Market size: USD55.6 billion

Source: BMI (Business Monitor International), Aranca Research Data for FDI is from Department of Industrial Policy and Promotion; Notes: FDI - Foreign Direct Investment; 2015E - Estimate for 2015 (estimates by BMI)

For updated information, please visit www.ibef.org

ADVANTAGE INDIA

3

Real Estate

2013

MARCH

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

4

Real Estate

2013

MARCH

Segments in the Indian real estate sector
Residential space
• Fragmented market with few large players • Demand of over 300,000 units in the seven major cities in 2010

Commercial space

• Few players with presence across India • Over 38.2 million sq ft demand in 7 major cities in 2011

Real estate sector

Retail space

• FDI in multi- brand retail to boost demand

• Fragmented market with few national players • Demand of around 15 million sq ft in major cities during 2011

Hospitality space

• A competitive market with many players

• Over 121,000 hotel rooms in the country as of 2011

SEZs

• 589 SEZs have been approved by the government so far • Majority of SEZs are in the IT/ ITeS sector Source: Cushman and Wakefield, Knight Frank, CRISIL, Aranca Research Notes: SEZ - Special Economic Zone. IT - Information Technology, ITeS - Information Technology Enabled Services

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MARKET OVERVIEW AND TRENDS

5

Real Estate

2013

MARCH

Indian real estate is a large, growing market …



Real estate contributes about 5 per cent to India’s GDP The total revenue generated in FY1 stood at USD66.8 1 billion Note: CAGR stands for Compounded Annual Growth Rate

Market size of real estate in India (USD billion)



66.8 53.3 55.6

50.1

FY08

FY09

FY10

FY11

Source: BMI, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

6

Real Estate

2013

MARCH

… with significant room for further growth



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 The housing shortage in urban and rural India will be around 21.7 and 19.7 million units respectively in 2014 Significant increase in real estate activity in cities like Indore, Raipur, Ahmadabad, Jaipur and other two-tier cities; this has opened new avenues of growth for the sector

Urban-rural housing shortage (million)
34



30.1 26.7 18.4 19.3 20.5 26 21.7 19.7



15.1



2001

2005 Urban

2008 Rural

2010

2014E

Source: BMI, CRISIL, Aranca...
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