BY:PRIYAM GUPTA PRIYANKA CHATTERJEE PRIYANSHA YADAV PULKIT KHURANA PUNEET SARAN

Introduction Real estate classification Pie Chart Distribution Stakeholders End Users Laws and Regulations Key Players Leading Companies Recession Best Practices Emerging Trends Unethical Practices Future Prospects

The term Real Estate is defined as land, including the air above it and the ground below it, and any buildings or structures on it. It is also referred to as realty. Real estate involves the purchase, sale, and development of land, residential and non-residential buildings . The activities of the real estate sector encompass the housing and construction sectors also. In India the real estate sector is a major employment driver, being the second largest employer next to agriculture. About 250 ancillary industries such as cement, brick, steel, timber, building materials etc. are dependent on the real estate industry.

REAL ESTATE

RESIDENTIAL

NONRESIDENTIAL/CO MMERCIAL

OFFICE

HOSPITALITY

INDUSTRIAL(SEZ)

RETAIL

GOVT. OFFICES

PRIVATE OFFICES

MALLS AND MULTIPLEXES

STANDALONE OUTLETS

Total share in real estate sector

25%

Residential Segment

Commercial Segment

75%

Portals like 99acres.com, Magicbricks.com, Indiaproperty.com Property exhibitions Newspaper ads Property magazines Leaflets Agents, brokers Leaseholders Government allotments( MHADA, Tata Housing) Neighbors, friends, colleagues Word of mouth Auctions Banks Investment Banks

Constructing companies Developers Engineers Technicians Design consultants Landlords Foremen Clerical staff Skilled workers Unskilled workers Banks Insurance companies Tenants Suppliers of material( Electrical, Material, etc.) Buyers Government Licensing/ Registration offices( e.g. BMC)

Investments -Investors -Speculators -Specu-vestors -Investor-occupiers -Owner-occupiers

Organizations - Govt. owned buildings - Organizations/companies - Self rented Types of end users

On the basis of size of family - Nuclear Family - Extended Family - Joint Family

Type of occupation Service class Business class Labor class

Budget Small Medium Large

Indian Transfer of Property Act Indian Registration Act, 1908 Indian Urban Land (Ceiling And Regulation) Act, 1976 Rent Control Acts The Town & Country Planning Acts

http://www.indialawoffices.com/pdf/realestate.pdf

Under the Income tax Act: Valuation of the property is done as per three values: Fair Valuation Municipal Valuation Market Valuation Valuation can be done on the basis of any of the above three but the registration and stamp duty cannot be paid at a rate lesser than the Municipal Valuation, better known as Ready Reckoner rate of the property.

(CLIS) Change of land Use

NOC At least in 2 stages

Plan verification
Registration NOC post completion As per new rule an additional Service tax of 2.5% will be levied on the registration value

DLF Ltdtrack record of 64 years, DLF is Indias largest real estate company in terms of revenues, earnings, market capitalization and developable area Only listed real estate Company included in the BSE Sensex, NSE Nifty, MSCI India Index and MSCI Emerging Markets Asia Index. UNITECH- Established in 1972, Unitech is Indias leading real estate developer in India

Ansal APIEstablished in 1967 as a family business, Ansal API today is clearly amongst the real estate leaders of India. Ansal API has till date, developed and delivered more than 190 million sq ft

Parsvnath Developers Ltd - First real estate Company to have integrated with ISO 9001, 14001 and OHSAS 18001.

Sr. No 1 2 3 4 5

Company Name DLF Limited National Buildings Construction Corporation Limited DLF Home Developers Limited Unitech Limited Housing Development and Infrastructure Limited

Total Inco01me( Rs. Cr) 3220.43 2947.73 2469.78 2221.71 1599.58

6 7
8 9 10

Ahluwalia Contracts (India) Limited DLF Retail Developers Limited

True Value Homes(l) Private Limited Emaar MGF Land Limited Sobha Developers Limited

1573.43 1501.89
1400.00 1172.35 1119.28

Source : Indias leading Real Estate Companies 2010

Land availability and acquisition issue Lack of Transparency High stamp duty charges Variable prices of raw materials Absence of a centralized regulatory authority Constraints of funds

Boom

Increasing vacancy Slowing down Construction growth Property price starting to fall

Capital outflows Declining prices Lending curbs Low consumption High vacancies

Recession

Clearances from district Administration, Municipal Corporation, Pollution Control Board, Electricity Board, etc. should be exchanged with the prospective buyer before entering into the deal. not violate government regulations on provisions of building height, parking space, basement, floor area, emergency exit, etc. Maintain the quality of construction as promised. title of the sale deed must be clear and legally valid, from both ends government's white paper has suggested introduction of tax deduction at source (TDS) on sale-purchase of properties.

Future Cities : A Perspective Regulatory Environment: the changing dynamics Managing risks for a long term sustainibility Technology: the game changer Smart homes: intelligent buildings Pre- fabrication: the fast catching trend Green practices: an option and a necessity

White Paper on Black Money black money rolling percentage is around 30% NEW GOLD RUSH - almost 300% appreciation of investment across all major markets in the country lack of stringent laws and a regulator for the sector, made it a haven for parking unaccounted money

The GRAVY TRAIN The landlord Contractors, Suppliers Local politicians Government officials

Enter The BUYER cash vs. cheque in payment

It is one of the fastest growing sectors of the Indian economy and contributes about 5 per cent to India's gross domestic product (GDP) India has huge potential to attract large foreign investments into real estate doe to its strong economic fundamentals and demographic factors Investments in Indian real estate will fetch higher returns for investors as compared to other global markets

Demand for residential space is expected to grow at a CAGR of 19% between 2010 and 2014 - Tier 1 metropolitan cities are expected to account for about 40% of this. The top three cities - Mumbai, the NCR and Bengaluru account for 46 per cent of total demand for office space in India.