SECTOR SPECIFIC COURSE-REAL ESTATE

Submitted by
P. Rohith Krishnasai
161433
Summary of the speakers profile

Mr. Tapas Patel had done his B Tech in the stream of Electrical and electronics engineering
from Jawaharlal Nehru Technological University Kukatpally, in the year 2000 he received
his degree.
Mr. Tapas worked for TATA Consultancy services as Software Developer and business
analyst for six years till 2006.
During the stint with TCS worked at different locations and clients like Cummins, Bank of
America, Marks and spencer.
Mr. Tapas Patel handled Mattress distribution Business under Patel Foam agencies of
brands like sleepwell and refresh from 2006-08 for entire Andhra Pradesh and Telangana.
Later he joined Omsree builders and developers in 2008.
Successfully delivered more than 400 units with built up area about 10 lakh Square feet
during the last 9 years at omsree.
Currently in position of CEO of Omsree builders and developers handling projects about
10 Lakh Square feet of built up area
Mr Tapas patel is currently working towards reshaping the brand Omsree in the Indian Real
Estate Industry.
Overview:
The real estate sector in India is at a crucial juncture of its evolution. While a significantly large
portion of the industry is still dominated by unorganized and marginal players; there has been a
consistent rise in share of organized players with number of listed companies growing over the
recent years. Having witnessed accelerated growth between 2003 and 2008, the real estate sector
in India was hit hard by the financial crisis of 2008-09. Having recovered from sudden jolt, the
sector has fast consolidated itself since then. Being a capital intensive sector; access to and cost of
funds plays a significant role for the sellers as well as the buyers. For the sector, not only has the
cost of funding increased but also access to debt and equity funds have got measured in the recent
times. Last year RBI had increased the standard asset provisioning by commercial banks for teaser
home loans from 0.4 % to 2%, capped the loan to value (LTV) ratio to 80% and increased the risk
weight on loans of more than 75 lakh to above 125%. On equity side also the funds availability
was limited.

Very few real estate companies opted to raise capital through IPO route recently. As a
result IPOs markets for the sector has been completely dry since 2011
FDI in real estate & housing dropped down to 3326 crore in April 2011 to February 2012
period, from 5149 crore in the previous financial year.
Private equity financing in real estate sector improved in 2011 with infusion of $2.68
billion through 53 deals as against $1.58 billion through 58 deals in 2010. On the flip side,
though, a total of 14 divestments from real estate were also announced by PE financing
companies with a combined value of $603 million.
During 2011 NRI share in real estate investment increased from an average of 4% to 8%
primarily due to sharp depreciation in INR against most other currencies.

Services offered by Real estate industry:

Residential real estate includes both new construction and resale homes. The most
common category is single-family homes. There are also condominiums, co-ops,
townhouses, duplexes, triple-deckers, quadplexes, high-value homes and vacation homes.
Commercial real estate includes shopping centers and strip malls, medical and educational
buildings, hotels and offices. Apartment buildings are often considered commercial, even
though they are used for residences. That's because they are owned to produce income.
Industrial real estate includes manufacturing buildings and property, as well as
warehouses. The buildings can be used for research, production, storage and distribution
of goods. Some buildings that distribute goods are considered commercial real estate. The
classification is important because the zoning, construction and sales are handled
differently.
Land includes vacant land, working farms and ranches. The subcategories within vacant
land include undeveloped, early development or reuse, subdivision and site assembly.
Here's more at Land Broker Transactions.
 Real estate agents assist homeowners, businesses and investors buy and sell all four types of
properties. The industry is typically divided up into specialists that focus on one of the types.
Sellers agents help find buyers through either the Multiple Listing Service or their professional
contacts. They price your property, using comparative listings of recently sold properties
known as "comps." The can help you spruce up your property so it will look its best to
customers.

Top Real Estate Companies

Kotle patil:
Founded 2 decades ago, Kolte-Patil Developers Ltd is one of the foremost real estate
companies which is headquartered in Pune. Listed on NSE and BSE Kolte-Patil is Pune's
largest developer and has completed 10 million square feet (sq. ft.) of landmark developments
in Pune and Bengaluru. It is also present in Mumbai with some upscale redevelopment projects.
Headed by a team of visionaries and dynamic leaders, Kolte-Patil has till date built projects in
multiple segments such as residential, commercial, retail, IT parks, and integrated townships.

HDIL:
Housing Development & Infrastructure Limited (HDIL) has established itself as one of Indias
premier real estate development companies, with significant operations in the Mumbai
Metropolitan Region. HDIL is a public listed real estate company in India with shares traded
on the BSE & NSE Stock Exchanges. HDIL group has completed more than 100 million square
feet of construction in all verticals of real estate in last one decade.HDIL caters to a diverse set
of customers and this is reflected in its portfolio which features premium commercial projects,
townships for housing India's middle class families and affordable housing for the bottom of
the pyramid.

Sunteck:
Sunteck Realty Ltd (SRL) is a Mumbai-based real estate development company, catering to
the ultra-luxury and luxury residential segment. SRL boasts of a city centric development
portfolio of about 25 million square feet spread across 24 projects at various stages of
development and four rented assets. Of the said portfolio, the company within a span of four
years has completed 6 projects with a developed area of about 2 million square feet comprising
of residential and commercial developments. 72 per cent of the development is residential and
balance 28 per cent commercial and retail.
Prestige Group:
The Prestige Group owes its origin to Mr Razack Sattar, who envisioned a success story
waiting to take shape in the Retail Business in 1956 itself. Since its formation in 1986, Prestige
Estates Projects has grown swiftly to become one of South India's leading Property Developers,
helping shape the skyline across the Residential, Commercial, Retail, Leisure & Hospitality
 sectors. Prestige Court on K.H. Road in Bengaluru set the pace for the Group's rapid growth
which now stands at over 183 completed projects spanning a total developed area of over 60.08
million sqft.
Brigade Group:
Brigade Group was established in 1986, with property development as its main focus.Today,
Brigade Group is one of South India's leading property developers with headquarter in
Bengaluru, branch offices in several cities in South India, a representative office in Dubai and
an accredited agent in the USA. Brigade have a uniquely diverse multi-domain portfolio that
covers property development, property management services, hospitality and education. The
projects extend across several major cities in South India: Chennai, Chikmagalur, Hyderabad,
Kochi, Mangalore and Mysore.
Jaypee Group:
The Jaypee Group is a Rs 20,000 crore (US$ 3.18 billion) well diversified infrastructural
industrial conglomerate in India. Over the decades it has maintained its salience with
leadership in its chosen line of businesses. Transforming challenges into opportunities has been
the hallmark of the Jaypee Group, ever since its inception five decades ago. The Group is a
diversified infrastructure conglomerate with business interests in engineering & construction,
cement, power, real estate, expressways, fertilizer, hospitality, healthcare, sports, information
technology and education (not-for-profit)

Future trends

In 2017, the primary sales market especially across larger cities will go up as real estate
prices have already bottomed out and stabilized in these cities with no scope or very
minimum chance of further coming down.
Buyers are going to have the best time in 2017. With surplus liquidity and lower cost of
funds for the banks, lending rates by commercial banks will come down which is good for
the sector. Banks may further relax their margin requirement stipulations for the home
loans. Home buyers will find it easy go in for Housing loans. Consequently, demand for
housing will go up.
As to office and commercial real estates year 2107 holds a bright future. Going by the
present trend, good connectivity, existing physical and social infrastructure in the area,
availability of campus style office spaces will be determinants for the demand, rents and
capital values.
Residential prices will remain mostly stable over the coming few months. Over the past
couple of months, there hasnt been a significant dip in prices as far as the primary market
is concerned, as was being expected; however, there has been some rationalisation in the
secondary market.
Growth Drivers:
Easier Financing
Growth in Tourism
Urbanization
Growing Economy
Policy from Government

Challenges:
All industries face disruptive forces. The unique dynamics of real estate make the challenge of
disruption particularly steep. The planning, delivery and management of real property requires a
long-term vision, which is difficult to establish in a rapidly changing world. The real estate sector
is now in a position that will require its leaders to better anticipate the future state and consciously
adopt new ideas, with success depending on the ability to proactively shape and drive future
demand. Following are some 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 average 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.

Opportunities:

Sometimes real estate development is undertaken as a public works project, in which case
it is not viewed as an investment in the classic sense.
The government engages in public works development in order to benefit certain
communities, put idle laborers back to work, or sometimes to just maintain a certain budget
size.
In urban areas, development is often restricted by community zoning laws. This is because
most city and county government planners engage in Planned Urban Development, which
segregates the uses of real estate into different "zones."

Go green initiatives of Real Estate Sector

Retrofit measures to make the existing building stock energy efficient and water wise, to
overcome the various environmental challenges posed by the sector.
New stock to be built on the principles of green buildings to accrue social, environmental
and economic benefits
 Efficient appliances; penetration of renewable energy with special focus on building
integrated PV as well in order to bring in equity (energy access) and reduce the
environmental implications and externalities associated with conventional electricity
generation
Setting of materials testing laboratories as per the requirements of green buildings and
setting protocol and uniform methodology responding to the needs of the country national
certification system/ body for assessing performance levels of such materials & products
and giving certification to prevent the market from falling in a trap of green wash
Strategy and implementation plan at national level on promotion of green materials and
replacement of high embodied materials with low embodied materials- a must for India
given the high construction rate
Capacity building at various levels including skilled manpower for enabling green
Construction, Local and State level government officials in order to implement the green
growth strategies in building sector

Career opportunities in Real Estate segment in the current market environment

Job opportunities in the industry are divided into four distinct fields: sales, management,
development, and acquisition and analysis.

Sales & Leasing

This segment includes everything from residential real estate brokers such as Century 21 and
Coldwell Banker to larger corporations that broker bigger commercial properties such as office
towers.

MANAGEMENT
Property managers are responsible for maintaining property values. They deal with tenants,
manage finances, and physically tend to the property. Of all the segments of the industry, this one
has been hit hardest by the wave of mergers and acquisitions sweeping the industry.

DEVELOPMENT
Developers are responsible for taking a property idea and making it a reality. This is a complex
process involving architects, engineers, zoning officials, builders, lenders, and prospective tenants.
Development is not always the gravy train some make it out to be, especially in a down economy
when financing is hard to come by and home values are falling. In April 2009, housing starts (new
homes being constructed) were down a record 54.2 percent from the year before and new building
permits were down 50.2 percent.

ACQUISITION&ANALYSIS
Any kind of investing in real estate requires a thorough understanding of how to analyze the value
of a property and navigate the maze of land-use regulations, zoning laws, environmental impact
reports, financing realities, and other barriers to buying and developing a property. The people
who develop, market, and manage REITs and other real estate investments are financial types,
often MBAs, who are charged with evaluating and arranging for the purchase of properties.

Road Ahead
The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate
Investment Trust platform which will help in allowing all kinds of investors to invest in the Indian
real estate market. It would create an opportunity worth Rs 1.25 trillion in the Indian market over
the years. Responding to an increasingly well-informed consumer base and, bearing in mind the
aspect of globalization, Indian real estate developers have shifted gears and accepted fresh
challenges. The most marked change has been the shift from family owned businesses to that of
professionally managed ones. Real estate developers, in meeting the growing need for managing
multiple projects across cities, are also investing in centralized processes to source material and
organize manpower and hiring qualified professionals in areas like project management,
architecture and engineering.