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Rahul Soni
Vikas Kumar Chouhan
What is Real Estate industry?
(an overview)

The Indian real estate sector is one of the fastest growing and globally
recognised sectors.

It comprises four sub sectors-housing, retail, hospitality, and commercial.

India ranks third for the most LEED (Leadership in Energy and
Environmental Design)-certified space globally, with nearly 12 million sq.
m.

In future the total realty market in the country is expected to touch US$
180 billion by 2020.
Current scenario of this industry

Recent years have seen the Indian real estate sector grow, especially the
commercial real estate segment. According to a study by Knight Frank, Mumbai is
the best city in India for commercial real estate investment, with returns of 12-19
per cent likely in the next five years.

The residential segment of real estate has also seen tremendous growth in recent
years owing to the continuous growth in population, migration towards urban areas,
ample job opportunities in service sectors, growing income levels, rise in nuclear
families and easy availability of finance.

With the government allowing 100 percent foreign direct investment (FDI) in this
sector, the number of foreign firms owning real estate projects in India has also
increased.
Government Initiatives

The Government of India has announced a host of measures to spur the real
estate sector, which include an allocation of Rs.7,060 crore (US$ 1.16 billion)
for the development of 100 smart cities.

A committee on Streamlining Approval Procedure for Real Estate Projects
(SAPREP) was constituted by the Ministry of Housing & Urban Poverty
Alleviation (MHUPA) to streamline the process of seeking clearances for real
estate projects.

The Indian Green Building Council (IGBC) has joined hands with the US Green
Building Council (USGBC) to strengthen their association for the next 10 years
to focus on areas of knowledge exchange and work on the green building
movement in India.

Measures taken by various State Government; for instance- the Punjab
government has proposed to exempt residents having houses with an area of
up to 125 square yards from paying the levy and delink tax payment from
collector rates. It has also proposed to keep vacant plots out of the ambit of
property tax which will be implemented during 2014-15.
What makes this industry to grow

rise in demand for office as well as residential space

100 percent foreign direct investment (FDI) in this sector


FDI worth US$ 23,587.25 million in the period April 2000-June 2014
continuous growth in population & rise in nuclear families

number of new launches in the first quarter of 2014 has increased by 43 per cent at
55,000 units across eight major cities

migration towards urban areas

ample job opportunities in service sectors & growing income levels

easy availability of finance

increasing the limit of interest deduction on home loans

Excise duty reduction on cement and steel
Real estate sector’s contribution to the
country’s GDP

On an average, real estate contributes 8% to India’s GDP & real estate (19.5%
CAGR) has witnessed tremendous growth since 2001
Contribution of Real estate and Construction to India’s GDP (USD Bn)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
GDP
Real Estate Services
Construction
2001
242
30
28
2011
1,346
128
107
2016
2,080
197
164
Source: RICS Research: Real estate and construction professionals in India 2020
FDI in real estate as a per cent of total FDI
in India

Total FDI in the real estate sector during April 2000 – September 2013 stood at
around US$ 22.7 billion.
Key Players of Real Estate sector

Hiranandani Developers

Omaxe Builders Private Ltd.

Jaypee Group

Supertech Ltd.

Unitech Ltd.

Godrej Properties

DLF Ltd.
6 Key Pillars
to streamline real estate project approvals
1
Bring
transparency,
predictability
and
accountability
to protect
consumer
interest
5
3
2
Review
existing
systems
and
procedures
Single
Window or
‘One-Stop
Shop’
enabled by
IT
4
Reforms to
promote
affordable
and green
housing
Share best
practices
and
incentivize
States
6
Capacity
building in
private
and public
sector
THANK YOU