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BRIEF REPORT
ON
REAL ESTATE SECTOR IN INDIA
August 2013
3 MARKET PLAYERS
The Indian real estate sector has traditionally been an unorganised sector but it is slowly evolving
into a more organised one. The sector is embracing professional standards and transparency
with open arms. The major established domestic players in the sector are DLF, Unitech,
Hiranandani Constructions, Tata Housing, Godrej Properties, Omaxe, Parsvanath, Raheja
Developers, Ansal Properties and Infrastructure and Mahindra Lifespace Developers Ltd to
name a few. International players who have made a name for themselves in India include Hines,
Tishman Speyer, Emaar Properties, Ascendas, Capitaland, Portman Holdings and Homex.
3.1 DLF Ltd
DLF group is a leading real estate developer in India since 1946. DLF has been instrumental in
putting Gurgaon on the urban landscape of India. DLF has over 220 million sq. ft. of existing
development projects and 574 million sq. ft. of planned projects. DLF has so far developed 22
urban colonies, and an entire integrated 3,000-acre township - DLF City. DLF's development
projects across India span over 30 cities: Gurgaon, Ambala, Shimla, Amritsar, Jalandhar,
Ludhiana, Sonepat, Panipat, Chandigarh, Panchkula, Noida, New Delhi, Jaipur, Indore,
Ahemdabad, Baroda, Lucknow, Faridabad, Mumbai, Pune, Nagpur, Goa, Kochi, Kokkanad,
Chennai, Bangalore, Vytilla, Coimbatore, Hyderabad, Bhubhaneshwar and Kolkata.
3.2 UNITECH
Established in 1972, Unitech is Indias leading real estate developer in India. It is the first
developer to have been certified ISO 9001:2000 in North India.
Project Spectrum: Unitech offers diversified projects across residential, commercial/IT parks,
retail, hotels, amusement parks and SEZs segments. Unitech was the first real estate company to
be part of the National Stock Exchanges NIFTY 50 Index. The company has over 600,000
shareholders. Unitech and Norway based Telenor Group came together to build Uninor - a
telecommunication services company providing GSM services across India.
3.3 Ansal API
Established in 1967 as a family business, Ansal API today is clearly amongst the real estate
leaders of India. Having established itself very strongly in the NCR region, Ansal API is now
focusing on ventures in cities like Bhatinda, Mohali, Amritsar, Ludhiana, Jalandhar, Jaipur,
Jodhpur, Ajmer, Sonepat, Panipat, Karnal, Kurukshetra, Faridabad, Gurgaon, Greater Noida,
and Ghaziabad, Meerut, Agra, Lucknow, to name a few. Ansal API has till date, developed and
delivered more than 190 million sq ft. The company currently has a land reserve of about 9,335
acres.
Project Spectrum: Integrated Townships, Condominiums, Group Housing, Malls, Shopping
Complex, Hotels, SEZs, IT Parks and Infrastructure and Utility Services
3.4 Sobha Developers Ltd
The Company was founded in 1995 by PNC Menon after he returned home from the Middle
East where he was acclaimed for quality interiors and construction since 1977. Today, this Rs10
billion plus company is one of the largest and only backward integrated company in the
construction arena. Its IPO in 2006 was oversubscribed by 126 times that created history, being
the first event of its kind in Indian capital markets.
Till date, Sobha has completed 47 residential projects, 13 commercial projects and 166
contractual projects covering about 36 million sqft area in 18 cities across India (as of 31 March
2010). The company currently has 21 ongoing residential projects aggregating to 8.5 million sqft,
while 4.24 million sqft of contractual projects are under various stages of construction.
3.5 Parsvnath Developers Ltd
Incorporated in July 1990 by Mr Jain in New Delhi, Parsvnath today has a substantial pan India
presence in over 45 cities across 16 states. The company has emerged as one of the most
progressive and multi-faceted real estate and construction entities in India.
Project spectrum: Housing (premium, mid-market as well as affordable), office complexes,
shopping malls & hypermarkets, hotels, multiplexes, IT Parks and SEZs.
4 POLICY INITIATIVES
4.1 Government Initiatives
According to the latest reforms, FDI up to 100 per cent is allowed under the automatic route
in townships, housing, built-up infrastructure and construction development projects to
increase investment, generate economic activity, create new employment opportunities and
add to the available housing stock and built-up infrastructure
The Ministry of Housing & Urban Poverty Alleviation has planned to introduce a single-
window system for clearance of all real estate projects across the country. The system could
bring down the average approval time from the current 196 days to 45-60 days
The Government of India has sanctioned projects worth Rs 41,723 crores (US$ 7.51 billion)
for building of 1,569,000 houses/dwelling units for economically weaker/lower income
group sections under the Ministrys flagship Jawaharlal Nehru National Urban Renewal
Mission (JNNURM) programmes
Housing finances are becoming feasible with the housing loan limit being raised to US$
52080 for priority sector lending
4.2 Some of the initiatives taken in the union budget 2013-14 include:
For homes and flats with a carpet area of 2,000 square feet or more or of a value of Rs 1
crore (US$ 180,213) or more, which are high-end constructions, where the component of
services is greater, rate of abatement reduced from 75 to 70 percent
Rs 6,000 crore (US$ 1.08 billion) were given to Rural Housing Fund
National Housing Bank plans to set up Urban Housing Fund. Rs 2,000 crore (US$ 360.47
million) will be provided to the fund in the current financial year
4.3 Investments
Private equity (PE) investments in real estate investment, reveals that approximately Rs 118.54
billion is available with private equity firms ready to be deployed in real estate, despite a drop in
the PE investment in the first half of 2013.
While PE investments in real estate was recorded at Rs 16.38 billion in H1 2013, which is 46%
lower when compared to first half of 2012 (Rs 30.50 billion), PE funds continue to show keen
interest in the market with a number of deals in discussion. This decline in the quantum of
private equity real estate investment (PERE) was essentially due to fewer deals (13 in H1 2013)
as the average ticket size of deals remained same.
The total value of investments in the residential segment recorded at Rs 9.3 billion in H1 2013
witnessed a drop of 48% over last year. The total value of investments in the office segment was
also lower in H1 2013 at Rs 7.0 billion. However, there is a strong growing trend towards
investments in ready office space. The growing stability of the market is reflected by the
continuous growth of the core investors (number and value) with over Rs 77.05 billion invested
in ready office space during the last three years.
In 2013, the highest value of private equity investments is noted in Pune at Rs 7.8 billion
followed by Mumbai at Rs 4billion, NCR at Rs 2.3 billion, and Bengaluru at Rs 1billion.
Some of the major investments in the Indian real estate sector are:
Ashiana Housing Ltd plans to foray into Gujarat's real estate with its first project worth Rs
100 crore (US$ 18.01 million) at Halol
Mr Akhilesh Yadav, Chief Minister of Uttar Pradesh (UP) has inaugurated and laid the
foundation of development projects worth Rs 3,337 crore (US$ 601.21 million) pertaining to
Noida, Greater Noida and Yamuna Expressway
Wave Infratech plans to invest Rs 500 crore (US$ 90.08 million) to set up its first affordable
housing venture in the Delhi national capital region (NCR) area
Mahindra Life space Developers has bought the stake of private equity Arch Capital in its
joint venture residential project at Chennai. The buyout of the stake was estimated to be
around Rs 70 crore (US$ 12.61 million)
Godrej Properties Ltd (GPL) has signed a development management agreement with United
Oxygen Company Pvt Ltd to develop residential housing project in Bengaluru. The project
will offer approximately 1,000,000 sq. ft. of saleable area and will be developed as a
residential housing project
5.3 Nic
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