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Real Estate Market in India
Real estate is the land and the changes that are done
Recognized as infrastructure service.
Fast growing market in the world
Large population base
Rising income level
It is second largest employer after agriculture.
Drivers of Real Estate Sector
Rising Income Level
Younger and smaller families.
Rising Urbanization (Migration)
Annually 10 million people migrate
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
Attracting investments in Mumbai.
1. Andheri West and East remain favourite addresses in
2. Ghodbunder Road in Thane.
3. Airoli and Kharghar in Navi Mumbai are top choices
for working couples and nuclear families.
Sardar Patel National Urban Housing Mission
(Housing for all)- 30 million houses, 2022
Relaxed FDI norm
Proposed to release Real Estate (Development and
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.
Softening of repo rate- It has positive impact on both developer
The budget is low on big bang reforms and real estate is
only an indirect beneficiary.
Visa on Arrival
Single window clearance system for speedy approvals
Intends to build 2 crore houses in rural and 4 crore in
Increase in service tax will increase the cost of construction.
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.
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
Need for Consultancy
Consultant brings years of marketing experience,
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
Urbanization is a trend
Price stagnation will continue for short-term
Existing unsold stock
2015 will focus more on recovery and clearing