REAL ESTATE

Presented by:
Mukesh singh
saurav
• Size of Indian Real Estate is currently USD 16 billion.
• Industry estimates indicate that the sector will
– Grow at CAGR of 30%
– To reach USD 50 billion by 2010
• Demand for quality real estate in India is seeing unprecedented
growth-demand supply gap exists across all segments of realty.

…Tremendous opportunity for real estate development across India.

 Trends in Real Estate
• Growth of India's middle class creating demand for housing.
• Strong demographic impetus: India has the second largest population in
the world and the growth rate of population is still rapid.
• High growth in service sector (IT/ITES) leading to demand for commercial
space.
• Rising FDI levels has increased commercial space requirements by foreign
firms.
• Expansion of organized retail sector.
• Growth in retain trade and tourism industry due to growth in Organised
retain and hotel industry
• Development spreading to Tier II and Tier III cities.
• Easy availability of finance.
• Alternative/Innovative financing options
 DEMAND FORECASTING FOR REAL ESTATE SECTOR

REGRESSION LINE Y = a + B1 I + B2P + B3R + B4G

Y = 1407.8 + 45.9(I) + 0.1 (P) + (-)17.3 (R) + (-)1.26 (G)

FY Demand in mn sq ft Income in lacs Price Per sqft Int_rate GDP at FC Estimated Demand

1 1382 2.25 1200 13.25 4.4 1383.45

2 1423 2.5 1300 12 5.8 1423.64

3 1466 2.75 1400 11 3.8 1463.80

4 1510 3.25 1500 10 8.5 1506.99

5 1555 3.75 1800 10 7.5 1557.89

6 1602 4.3 2250 11 9 1604.02

7 1650 5.15 2900 14 9.4 1648.56

8   5.65 3300 12.5 9 1733.51

9   6.15 3600 12.5 9 1783.15

10   6.75 4000 12.5 9 1846.28

SOURCES : ICICI, E&Y, DEUTSHE BANK, NHB, FICCI………....

 Demand Forecasting

2000

1800
Fin_Year
Demand in Sq Ft

1600
Estimated Demand
1400
Actual Demand
1200

1000
1 2 3 4 5 6 7 8 9 10
Financial Year
D
L
F
• The largest real estate development company in India

• In existence since 1946

• Completed 224mn sq ft of development

• Focus area – NCR (Delhi and Gurgaon)

• Responsible for developing the Satellite town ship in Gurgaon

• Current Land Base of 10,255 acres of land bank

 DLF- Financials
Particulars FY 05 FY 06 FY 07

Income from Operations in Cr Rs. 608 1154 2615

PAT in Rs. Cr. 88 193 1944

Net Profit Margins % 14.5 16.7 74.2

ROE % 11.8 22.7 78.7

ROCE % 8.9 15.5 30

EPS % 0.6 1.3 12.7

*Source IndiaInfoline      
DLF BUSINESS MIX
• Brand Name and Reputation
• Extensive Land Reserves
• Scale of Operations
• Strategic Locations
• Experienced and Dedicated
Management
• Political risks.
• Macroeconomic Factors
• Execution risk
• Regional concentration
• Dependency on DAL
• Large demand-supply gap in
affordable residential
accommodation
• Availability of loans at low interest
rates, tax incentives and a growing
middle class with higher savings
• Housing
• Increasing demand for commercial
space
• Office space for IT/ITeS
 THANK
YO
U