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Ppt on real estate market in India

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More focuse on govt activties towards real estate

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Ppt on real estate market in India

  1. 1. Real Estate Market in India Presented by Gurvinder Singh
  2. 2. Real Estate  Real estate is the land and the changes that are done to land.  Recognized as infrastructure service.  Fast growing market in the world  Large population base  Rising income level  Rapid urbanization  It is second largest employer after agriculture.
  3. 3. Sectors  Residential space (Housing)  Affordable Housing  Mid-Income Housing  Luxury Housing  Commercial  Retail  Hospitality
  4. 4. Drivers of Real Estate Sector  Economic performance  Rising Income Level  Younger and smaller families.  Rising Urbanization (Migration)  Annually 10 million people migrate
  5. 5. Growth  Country's population lived in towns in 1951 was 17%, currently 32% and by 2050 about 50% . This indicate huge demand for Affordable houses.  Market size is expected to touch US$ 180 billion by 2020 and in 2011 US$ 66.8 billion.  Study by Knight Frank, Mumbai is the best city in India for commercial real estate investment, with returns of 12-19 per cent.  Attracting investments in Mumbai. 1. Andheri West and East remain favourite addresses in Central Mumbai. 2. Ghodbunder Road in Thane. 3. Airoli and Kharghar in Navi Mumbai are top choices for working couples and nuclear families.
  6. 6. Government Initiatives  Sardar Patel National Urban Housing Mission (Housing for all)- 30 million houses, 2022  Relaxed FDI norm  Proposed to release Real Estate (Development and regulation) bill  Protect consumer interest  Standardization in business practice  Land acquisition Resettlement & Rehabilitation Act 2013  Reduction in the size of projects eligible for FDI from 50,000 sqm to 20,000 sqm and minimum investment limit. OTHER  Softening of repo rate- It has positive impact on both developer and consumers.
  7. 7. Budget 15-16  The budget is low on big bang reforms and real estate is only an indirect beneficiary.  REITs  Visa on Arrival  GST  Wealth Tax  Single window clearance system for speedy approvals  Intends to build 2 crore houses in rural and 4 crore in urban India.  Increase in service tax will increase the cost of construction.
  8. 8. Challenges  Lack of clear land title  Lack of adequate source of finance  Difficulties in Approvals and Procedural :24 regulatory processes for obtaining construction permit. It takes an avg 227 days  Lack of basic infrastructure in Indian cities  Supply of urban land is largely controlled by the Government Development bodies  Leaving very limited developed space, which is controlled by a few major players in each city.
  9. 9. Why Houses are not affordable  In India cities like Mumbai, the cost of land contributes more than 70% of the total cost, even in tier two and three cities, it contributes almost 50% of the cost. When compared to developed economies, the land cost contributes not more than 30% to the total cost.
  10. 10. Need for Consultancy  Consultant brings years of marketing experience, knowledge.  Win-win situation  Sell the home faster,  They knows about Builder Reputation, Loan Facility, Area calculations like carpet area, Built up area, Super built up area etc.  Name of companies  HDFC RED  Network Consulting
  11. 11. Conclusion  Urbanization is a trend  Price stagnation will continue for short-term  Existing unsold stock  2015 will focus more on recovery and clearing inventory.
  12. 12. THANK YOU

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