Real Estate Industry in India 123

Real Estate Industry in India

Last Updated: May2013

IntroductionThe real estate sector in India has come a long way by becoming one of the fastest growing markets in the world. It is not only successfully attracting domestic real estate developers, but foreign investors as well. The growth of the industry is attributed mainly to a large population base, rising income level, and rapid urbanisation. The sector comprises of four sub-sectors- housing, retail, hospitality, and commercial. While housing contributes to five-six percent of the countrys gross domestic product (GDP), the remaining three sub-sectors are also growing at a rapid pace, meeting the increasing infrastructural needs.The real estate sector has transformed from being unorganised to a dynamic and organised sector over the past decade. Government policies have been instrumental in providing support after recognising the need for infrastructure development in order to ensure better standard of living for its citizens. In addition to this, adequate infrastructure forms a prerequisite for sustaining the long-term growth momentum of the economy. Market Size/ Growth ProspectsThe total revenue of the real estate sector was US$ 66.8 billion during 2010-11. By 2020, the sector is expected to earn a revenue of US$ 180 billion. In fact, the demand is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014, with tier I metropolitan cities projected to account for about 40 per cent of this.Growing infrastructure requirements from sectors such as education, healthcare and tourism are providing numerous opportunities in the sector. Further, India is going to produce an estimated two million new graduates from various Indian universities during this year, creating demand for 100 million square feet of office and industrial space. In addition, presence of a large number of Fortune 500 and other reputed companies will attract more companies to initiate their operational bases in India thus, creating more demand for corporate space.InvestmentsIndia is ranked 20th in the list of worlds top real estate investment markets with investment volume of US$ 3.4 billion in 2012, according to the latest report titled 'International Investment Atlas' by Cushman & Wakefield. The sector is set for robust inflows of US$ 4-5 billion from overseas investors in the next couple of years, with Bangalore, Delhi and Mumbai emerging as the favourites, according to Jones Lang LaSalle, a global real estate consultancy giant.Construction development sector (including townships, housing, built-up infrastructure & construction-development projects) has attracted a cumulative foreign direct investment (FDI) worth US$ 22,007.67 million from April 2000 to February 2013. FDI flows into the construction sector for the period April-February 2012-13 stood at US$ 1,260 million, according to the department of industrial policy and promotion (DIPP). Bengaluru witnessed the highest number and value of private equity investments at Rs 32.5 billion (US$ 585.57 million) in 2012, recording more than double of investment over last year, followed by Mumbai with Rs 13 billion (US$ 234.17 million) and National Capital Region (NCR) with Rs 7 billion (US$ 126.09 million) of investments.India needs to invest US$ 1.2 trillion over the next 20 years to modernise urban infrastructure and keep pace with the growing urbanisation, as per a report released by McKinsey Global Institute (MGI)-India's urban awakening.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 Lifespace 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 projectGovernment 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 lendingSome 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 yearRoad AheadThe real estate industry in India is yet in a promising stage. The sector happens to be the second largest employer after agriculture and is expected to grow at the rate of 30 per cent over the next decade. A growing migrant population due to increasing job opportunities, together with healthy infrastructure development, is underpinning demand in the regions residential real estate marketThe Kalpataru spokesperson feels that the Finance Ministry's motivation through softening of interest rates and lending more to the real estate sector will have a positive impact on both developers and consumers. The real estate market could start to perform better as the easing of FDI norms will begin to show results during the second half of the year, according to Lalit Kumar Jain, Chairman & Managing Director, Kumar Urban Development Ltd and President National CREDAI. "The economy will also recover in 2013 which in turn will perk up the real estate sector in India. With the government trying to introduce developer and buyer friendly policies, the outlook for real estate in 2013 does look promising," said Mr Jain. Exchange Rate Used: INR 1 = US$ 0.0184 as on May 24, 2013References: Ministry of Finance, Press Information Bureau (PIB), Media Report, Department of Industrial Policy and Promotion (DIPP), CREDAI, The Union Budget 2013-14

Speed News 06 May 2013,16:21 IST"Kerala is another state which has seen massive growth of over 550% in attracting new investments in real estate followed by Uttarakhand (400%) and Rajasthan (175%)," said D S Rawat, national secretary general of ASSOCHAM. Gujarat has the maximum share of about 41% in new investments attracted by the real estate sector across India.06 May 2013,16:16 ISTThe realty sector in India attracted new investments worth over Rs 42,000 crore as of March 2013 which slipped from over Rs 92,600 crore a year ago said D S Rawat, national secretary general of ASSOCHAM. While most of the states have seen a decline in attracting new investments, Gujarat has seen a surge of over 700 % as the state has attracted investments worth over Rs 17,000 crore as of March 2013 from just over Rs 2,000 crore a year ago.06 May 2013,16:10 ISTKarnataka has ranked third with a share of about 10% in new investments attracted by the real estate sector across India during the last fiscal, said apex industry body ASSOCHAM. "However, the new investments in realty sector attracted by Karnataka plummeted from over Rs 10,400 crore to just over Rs 4,100 crore during the period ranging between 2011-12 and 2012-13, thereby registering a year-on-year (Y-O-Y) decline of about 60%," said ASSOCHAM.01 Jan 2013,12:36 ISTThe real estate prices are all set to shoot up in Indore this year. The reasons are galore. Coming of a number of undergoing projects is, however, prime among them. The prices are likely to even double in certain parts of the city during the year. It has resulted in the gold rush among the buyers of houses.17 Dec 2012,23:16 ISTConfederation of Indian Indian Industry (CII) and Confederation of Real Estate Developers Associations of India (Credai) will hold a day long Real Estate Conclave on Pune - The Leading Real Estate Destination today (18 December 2012) at Hotel Hyatt Regency.30 Nov 2012,18:19 ISTSize of operational malls in India expected to cross 300,000 sq ft by 2014, according to a study conducted by global real estate services firm Jones Lang LaSalle.19 Nov 2012,15:31 ISTMumbai records highest rental growth globally, says a recent report by Cushman & Wakefield.17 Oct 2012,12:01 ISTAware of the consumers' mood of being cautious towards spending too much during the ongoing festival season, the real estate developers and other traders are resorting to lucrative offers like discount, lucky draw and various schemes in their bid to woo them. Again, no realtor here seems to be in a mood to go for any price reduction as they feel that the real estate prices here were already low.11 Jul 2012,16:25 ISTAs per the latest report released by Cushman & Wakefield, the retail real estate market recorded a deferment of more than 30% of retail mall space against the projected supply for the first half of the year.19 Jun 2012,07:43 ISTConfederation of Indian Industry and Grant Thornton India LLP will hold the 8th International Conference on real estate - realty 2012 on 28 June 2012 in New Delhi. --12 Jun 2012,18:33 ISTDLF, the country's largest real estate company today announced that, the company's wholly owned subsidiary, DLF Hotel Holdings Ltd, has divested its entire shareholding in Adone Hotels and Hospitality Ltd (Adone) for Rs. 567 Crore.05 Jan 2012,17:36 ISTPrivate investment firm ASK Property Investment Advisors will launch Pune Residential Real Estate Report on 6 January 2012. --08 Aug 2011,16:27 ISTAfter real estate, hospitality and healthcare, the Ansal API plans to foray in the education sector in a big way. The Ansal Medical Institute in Jaipur would be set up with an investment of Rs 10 cr in a span of two years from now in collaboration with the Hope Medical Institute in the US.21 Jul 2011,18:02 ISTFinancial consultancy firm Grant Thornton and CredaiBengal will hold an interactive sessionon the current real estate scenario, the regulatory environment and financing options on 26 July 2011 at The Bengal Club Kolkata at 6 pm.08 Jun 2011,15:37 ISTUnitech, integrated developer of large-scale real estate projects, is planning to launch &lsquoUniworld Resorts&rsquo, a residential project in the midst ofElectronic City, Phase - I, Bangalore.Economy of IndiaFrom Wikipedia, the free encyclopediaJump to: navigation, search Economy of India

Mumbai, The Entertainment, Fashion, and Commercial Centre of India

Rank10th (nominal) / 3rd (PPP)

Currency1 (INR) () = 100 Paise

Fiscal year1 April 31 March

Trade organizationsWTO, SAFTA, G-20 and others

Statistics

GDP$1.824 trillion (nominal) 10th; 2012)[1]$4.684 trillion (PPP: 3rd; 2012)[1]

GDP growth3.986% (2012-13)[1]

GDP per capita$1,491 (nominal: 141th; 2012)[1]$3,829 (PPP: 130th; 2012)[1]

GDP by sectoragriculture: 17.2%, industry: 26.4%, services: 56.4% (2011 est.)

Inflation (CPI)CPI: 9.31%, WPI: 4.7% (April 2013)

Populationbelow poverty line29.8% (2010)

Gini coefficient36.8 (List of countries)

Labour force498.4 million (2012 est.)

Labour forceby occupationagriculture: 53%, industry: 19%, services: 28% (2011 est.)

Unemployment9.9% (2012 est.)[2]

Average gross salary$1,410 yearly (2011)[3]

Main industriestextiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals

Ease of Doing Business Rank132nd[4] (2012)

External

Exports$309.1 billion (2012 est.)

Export goodspetroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel

Main export partnersUnited Arab Emirates 12.7%United States 10.8%China 6.2%Singapore 5.3%Hong Kong 4.1% (2011 est.)[5]

Imports$500.3 billion (2012 est.)

Import goodscrude oil, raw precious stones, machinery, fertilizer, iron and steel, chemicals

Main import partnersChina 11.9%United Arab Emirates 7.7%Switzerland 6.8%Saudi Arabia 6.1%United States 4.9% (2011 est.)[6]

FDI stock$47 billion (201112)[7]

Gross external debt$299.2billion (31 December 2012)

Public finances

Public debt67.59% of GDP (2012 est.)[8]

Budget deficit5.2% of GDP (201112)

Revenues$171.5 billionbillion (2012 est.)

Expenses$281 billionbillion (2012 est.)

Economic aid$2.107billion (2008)[9]

Credit ratingBBB- (Domestic)BBB- (Foreign)BBB+ (T&C Assessment)Outlook: Stable(Standard & Poor's)[10]

Foreign reserves$295.29billion (October 2012)[11]

Main data source: CIA World Fact BookAll values, unless otherwise stated, are in US dollars

The economy of India is the tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP).[1] The country is one of the G-20 major economies and a member of BRICS. On a per-capita-income basis, India ranked 141st by nominal GDP and 130th by GDP (PPP) in 2012, according to the IMF.[12] India is the 19th-largest exporter and the 10th-largest importer in the world. Economic growth rate slowed to around 5.0% for the 201213 fiscal year compared with 6.2% in the previous fiscal.[13] It is to be noted that India's GDP grew by an astounding 9.3% in 201011. Thus, the growth rate has nearly halved in just three years. GDP growth went up marginally to 4.8% during the quarter through March 2013, from about 4.7% in the previous quarter. The government has forecasted a growth of 6.1%-6.7% for the year 2013-14, whilst the RBI expects the same to be at 5.7%.The independence-era Indian economy (from 1947 to 1991) was based on a mixed economy combining features of capitalism and socialism, resulting in an inward-looking, interventionist policies and import-substituting economy that failed to take advantage of the post-war expansion of trade.[14] This model contributed to widespread inefficiencies and corruption, and the failings of this system were due largely to its poor implementation.[14]In 1991, India adopted liberal and free-market principles and liberalized its economy to international trade under the guidance of Manmohan Singh, finance minister from 30 November 2009 to 24 January 2010, and previously under the leadership of P.V. Narasimha Rao, prime minister from 1991 to 1996, who had eliminated License Raj, a pre- and post-British era mechanism of strict government controls on setting up new industry. Following these major economic reforms, and a strong focus on developing national infrastructure such as the Golden Quadrilateral project by Atal Bihari Vajpayee, prime minister, the country's economic growth progressed at a rapid pace, with relatively large increases in per-capita incomes.[India Real Estate to boom in 2013 2012 was not so good for India real estate due to high construction cost and falling sales which affected the market sentiment negetively. However, this year was good for home buyers who were waiting to buy or invest in real estate sector.In 2013, the real estate regulations and policies, which are pending from last couple of years, are expected to be passed by the parliament in the coming quarter. Moreover, the approval of Foreign Direct Investment bill in India in multi-brand retail will lure foreign investors which will benefit the retail industry as well as increase the demand for commercial real estate. Next year, the Reserve Bank of India (RBI) is also planning to lower the interest rates which will further help the customers as well as real estate developers.The changes happening will definitely have an impact in all the sectors of real estate in india whether it is commercial, residential or retail. It is expected that 2013 will be a much better year than previous years. real estate boom in india, top 10 real estate companies in india 2013, top 10 real estate companies in india, booming business in india 2013, indian real estate boom, real estate boom in india 2013, boom in real estate in india, powered by vbulletin real estate, property boom in india, top 10 real estate companies in india 2012, when will real estate boom in india, which sector will boom in 2013 in india, what will happen for indian real estate, top 10 corporate real estate developers in india, boom of real sector in india, upcoming boom in real estate, property boom in india 2013, real estate in india 2013 boom back, india real estate boom 2013, top ten real estate companies in india 2013, top 5 real estate companies in india, increase demand for real estate in india 2013, celebrities in indian real estate, list of top real estate companies in india 2013, indian real estate forum, real estate may boom in india 2013 Register NowIndian property bubbleFrom Wikipedia, the free encyclopediaJump to: navigation, search This article is written like a personal reflection or opinion essay rather than an encyclopedic description of the subject. Please help improve it by rewriting it in an encyclopedic style. (October 2010)

A major office complex in Gurgaon

Tidel Park is one of the many software parks in Chennai.The Indian property bubble Some Indian economists[citation needed] have expressed concerns that housing markets in some major Indian cities may be property bubbles and are expected to burst . The primary causes triggering bursting of this currently hypothetical bubble would include political instability in the country, restrictions on banking exposure to this segment of the economy by the Reserve Bank of India . This will likely be in an attempt to prevent the sort of massive housing price crash that occurred during the fall of United States property bubble of 2008-2009, but it may have the opposite effect, speeding up losses.Contents 1 Background 1.1 Potential causes 2 Debate 2.1 Arguments against the bubble 2.2 Arguments for the bubble 3 Possible timing of adverse market events 3.1 Abnormal market statistics in the year 2011 3.2 Abnormal market statistics in the year 2012 4 See also 5 References

Background Potential causes The Indian property market is purported to be in bubble territory since March 2005,[according to whom?]. when the current UPA government decided to liberalize foreign direct investment norms in real estate on Feb 26, 2005,[citation needed] introduced the SEZ Act in 2005, and allowed private equity funds into real estate. Other key factors that contributed to this tremendous growth were lower price[citation needed]which attracted buyers and investors not only from India but NRIs & Foreign funds also deployed money into Indian real estate market. These new rules ensured that Indian money stacked in Switzerland and other tax havens can be brought back to invest in high yielding Indian property market[citation needed], away from low-yielding dollar assets.Debate Arguments against the bubble Some have suggested that given India's population density is closer to that of Europe than that of America the real value of Indian Real Estate should be close to European levels rather than American levels[according to whom?]. When looked at in that way Indian real estate is still cheap[according to whom?]. This argument assumes the rapid economic growth in India will have brought per capita income in India to Western European levels within the next 10 years in urban areas[according to whom?].By its very definition a bubble is a short term phenomenon while Indian real estate market has continued on a secular upward trend[clarification needed], apart from periodic adjustments, in the last 10 years. Bear in mind that there are almost 400 million Indians waiting to hit the middle class group and they will exert additional pressure on the system[according to whom?]. Affordability is the most important factor when it comes to housing prices and middle class housing is much levels of affordability in most of the major cities in India. People who compare India with developed European cities, forget the huge difference in affordability in both areas. Of course there is a huge demand for housing but they can only buy what they can afford[according to whom?](from common sense).One of the big problem of real-estate market is that supply lags behind demand by about 5 years (Plan-Approve-Finance-Construct time).[citation needed]Lack of efficient signals to market participants means that there will be periods of mismatch between suppliers and buyers hence leading to cycles of booms and busts.Arguments for the bubble Contrary argument to this is US prices should ideally move with economy/inflation rate of 23% while Indian prices will gallop at the rate of 10% a year and probably more as the land distribution market is inefficient[according to whom?]. This price increase is mostly due to two reason one primarily in most cases the developers create false claims of overbooking and increase the demand and price[citation needed] and the other reason most of time properties are bought sold within 612 months from one buyer to other[clarification needed]. There is no system available to the public to track these sells or buys. In US there are lot of real estate website provide the details buy and sell details, what is fair value, when the house was built, how many houses are on sale.Possible timing of adverse market events Abnormal market statistics in the year 2011 Property market is predicted to witness a glut in 201213 owing to steady new launches at a time when sales are extremely slow, according to Indian real estate consultancy Jones Lang LaSalle[1] India as reported on Navyroof.com.[2]As of April 7, 2011, Navyroof.com.[3] featured an article Mumbai residential property set for fall of up to 35% by Jones La LaSalle which says property in Delhi and Mumbai could fall by as much as 35%. The reasons for this is Indian property developers who bought land at high prices are now having to bring prices down considerably and of recent residential sales about 65% of flats in Delhi and 35% in Mumbai have gone to speculators according to Jones Lang La Salle.Some Delhi commentators such as Prerna Agarwal.[4] feel the Indian property market needs to be looked at in context of the overall economic situation in India and the local real estate pricing trends prevalent in a region. The Indian economy is booming with an annual GDP growth rate of 8.5- 9% creating a class of potential investors with significant disposable income. As housing remains a concern in major metro cities, sufficient demand generators for residential units are there for the next decade and expect prices to rise 1015% in India in next five years.there is no possibility of salary increases in the short term[citation needed]and middle class will endup in paying their 20 years of earnings to own a home which is very high comparing to their western counterparts.The lower middle class who are not able to afford housing will tend to look for rented houses which put pressure on rental which also pushup the inflation further .The money generated as part of selling should be controlled by the govt and thereby get the taxes.Although there have been studies that have shown that in 2010 the time was right to invest in Indian real estate.[5] Its been reported Indian property prices could fall 1015% by Diwali 2011.[6][7][8][9]Abnormal market statistics in the year 2012 Real estate research firm PropEquity said new home sales in Mumbai and NCR dropped over 50 per cent in Q1 of this calendar year.[10]

Boom in India Real Estate is being observed in the real estate of not only domestic property but also commercial properties. According to industry estimates, the value of domestic Indian real estate market is about US$ 14 billion. Again, in the current financial year, 2006-07, it is estimated that the total FDIs will be worth nearly US$ 8 billion and the share of FDI influx in the India Real Estate Market 2007 will be about 26.5%. The boom in India Real Estate is observed in all sectors like the residential, commercial, retail, and recreational projects.Factors responsible for the boom in India Real Estate:

In recent years, India real estate has been in a burgeoning stage in not only the A1-tier cities of India, but also in other Indian cities. Some of the leading factors responsible for this are: the increase in the population level the growth of the software IT based companies in India the accumulated resource capital with the new young generation working in the IT companies the presence of NRIs and their interest in investing in the Indian real estate market the liberalization policies taken up by the Indian government to encourage the 100% FDI participation the introduction of the Real Estate Investment Trust and the Real Estate Mutual Funds the development of the Special Economic Zones all over India into real estates the increase in the concept of nuclear families the rise in the tourism industry of India There are many domestic as well as international players in the Indian realty business who are responsible for the boom in India Real Estate. Some of the prospective domestic real estate builders are like the Omaxe Constructions, Ansal Properties and Infrastructure, DLF, RMZ Corporation, Rungta Group, Hiranandani Group, Merlin Group, Kalpataru Group, Appaswamy Group of Companies, and K Raheja Group. There are also some foreign real estate developers who had been operating in the Indian real estate business like Lee Kim Tah Holdings, CESMA International Pvt Ltd., Evan Lim, Keppel Land, Salim Group, Emaar Group, Edaw Ltd., IJM, and Ho Hup Construction Co.Money Market -- Mortgage Rates -- Housing Development Authorities -- Real Estate Pune --India Real Estate Investment

India Real Estate India Real Estate Agents Real Estate Chennai FDI in India Real Estate Real Estate Kolkata Boom in India Real Estate Real Estate Bangalore Real Estate for Sale in India Real Estate Pune India Real Estate Market 2007 Real Estate Gurgaon India Real Estate Price Rates Ansal API India Real Estate Companies Ashiana Group National Housing Bank Eldeco Infrastructure HDFC India Real Estate Fund Housing Board in India DHFL Venture Capital Fund K. Raheja Corp. Kshitij Venture Capital Fund Omaxe Limited ICICI-India Advantage Fund Real Estate Mumbai Kotak Mahindra Realty Fund Sahara Infrastructure Housing Development Authorities Supertech Group India Real Estate Investment Trusts Unitech Group Home Loans in India Emaar MGF India Real Estate Online Hiranandani Developers Jobs In Real Estate Confederation of Real Estate Parsvnath Developers LimitedReal estate boom in India - is it realistic?

|Email

null

If you know the basics of economics, you may know the law of demand and supply excess demand over supply of a commodity leads to a rise in its price. The present state of Indias real estate is a practical depiction of this fundamental of economics.Investing in real estate in India is becoming more expensive with each passing day. A study conducted by Donald Trump Jr. shows that the Indian real estate market is worth US $12 billion, with an average annual growth rate of 30%. Property prices have appreciated by over 50% in cities like Bangalore, Pune, and Mumbai. Why has real property become out of reach in India? The Indian economy, especially the information technology and BPO sectors, has been on a fast growth track. These industries offer high paying jobs. Also, people are more aware of the luxurious lifestyle of the West. With money in their hands, IT and call center employees can afford to buy these luxuries in India. However, even with the construction business being stronger than ever before, it falls short of meeting the demands of the large population. All put together, this has led to rise in property prices! Real returns in real estate caught the NRIs attention! The inflow of NRI funds in Indias real estate has also contributed to the price hype. There is also a rise in the trend of NRIs returning to India for good. This has put pressure on Indias real estate. Indias commercial and retail real estate has also been on a rise. There has been a mushrooming of shopping malls and entertainment centers throughout the country. Multi-national companies are also entering the Indian market regularly. Naturally, there is an increase in demand for office space. As the real estate investments gave high returns to investors, foreign investors have also started taking interest in Indias real estate. For example, Morgan Stanley invested US$ 68 million in Mantri developers and Merrill Lynch has invested US$ 50 million in Panchsheel Developers. Foreign companies like GE Commercial Finance Real Estate has invested US$ 63 million in IT parks in India. According to the Merrill Lynch forecast, the real estate business in India will grow to $US 90 billion by 2015.

Indias Emerging Retail Destinations24. Jun, 2013 by Pankaj Renjhen 0 Comments For Indianretail players, stagnation and obsolescence are two sides of the same coin. Though expansion is often a challenge in a curtailed economic environment, it is nevertheless a necessary function for success. Indian retailers who wait too long to expand into new territories, or are content to stay where they are, are missing the growth wave and will eventually lose their market relevance.As such, all Indian and global retail brands operating in India have plans to expand into cities where economic momentum is picking up. In these cities, most local retailers already have a footprint, but branded national and international brands also have their sights trained on these emerging cities.The upcoming cities that retailers are considering with increasing seriousness today are: Jaipur Kochi Ludhiana Indore Nagpur UdaipurThese emerging cities are emerging as lucrative as retailers/brands are attracted by the increasing incomes and rising brand awareness among consumers there. Also, a substantial number of shopping malls are being planned or are already under development in these cities. Sales in the modern retail stores in these cities are quite encouraging, and this is paving the way for the establishment of even more organised retail.

Indore: Traditional high streets still dominate Indores retail landscape. However, high street retail is gradually yielding market share to organised retail with the arrival of new malls and shopping centres in the city. M.G Road along with Jawaharlal Nehru Road was traditionally Indores retail hub before the emergence of markets adjacent to Palasia Chauraha and Bombay Hospital. Kochi: Retail activity in Kochi has traditionally been concentrated on a central high street, with M.G Road being the dominant retail corridor. The other emerging retail destinations in Kochi include Marine Drive, Vytilla Junction, Palarivattam and Edapally. Shopping malls are also emerging in areas such as Maradu and Edapally. The Upcoming mall developments include Lullu Mall, among others. Ludhiana: Ferozpur Road is the main growth corridor for retail in Ludhiana; consequently, it has seen the highest incidence of major organized retail developments with Ansal Plaza, Flamez Mall and Westend Mall. Over time, various national and local developers have entered the market these include Ansal API, DLF, MBD Group, Omaxe and Chadha Group. Jaipur: Jaipur has progressed tremendously on the retail front, and is considered one of the most important emerging retail destinations of North India. It has shopping malls with multiplexes operational at various locations in the city. Organised retail has come up and is proliferating in areas such as Tonk Road, Malviya Nagar and Ajmer Road, among others. Udaipur: The traditional retail destinations of Udaipur include Bapu Bazaar, Chetak Circle, Suraj Pole, Nehru Bazaar, Bada Bazaar and Chand Pole. Organised retail is also widespread throughout Udaipur, with Durga Nursery Road, Shakti Nagar and Sudkhadia Circle having the largest concentration of new entrants. Shopping mall developments are beginning to make their presence felt in Udaipur, in light of the growing demand among local consumers for a modern shopping experience. Nagpur: In Nagpur, unorganised retail has more or less always existed in areas such as Itwari and Sitabuldi, and in western part of the city. The citys established prime retail areas include Dharampeth, Ramdaspeth, Gokulpeth, Central Avenue, Gandhibagh and Sadar. Shopping malls are also operational in Nagpur, and a lot of retail brands are entering there. Presently, Central Nagpur is a noteworthy retail destination in terms of shopping mall developments however, both West and South Nagpur are rapidly emerging as the next generation retail hubs.Pankaj Renjhen, Managing Director Retail Services, Jones Lang LaSalle IndiaCopyrightsecuredbyDigiprove2013JonesLangLaSalle 0 CommentsCategories: India Property, Indian Retail, Jones Lang LaSalle, Malls, Real Estate, Real Estate Tips, Real Estate Trends, Retail Properties, Retail Real Estate Jones Lang LaSalle Concludes its First Real Estate M&A Deal in Pune30. May, 2013 by Administration 0 Comments USD83 million (INR 4500 million) Valuation AchievedPune, May 30, 2013:The Capital Markets division of leading international property consultants Jones Lang LaSalle India have successfully concluded its largest M&A real estate deal in Pune for 2013 to date. Acting on behalf of the company holding BlueRidge Special Economic Zone (SEZ) Phase 1, the Firms Capital Markets team has successfully facilitated the sale of 100% equity in the company to IDFC Limited, one of Indias largest domestic financial institutions.The enterprise valuation achieved is approximately USD83 million (INR 4500 million) and the equity stake will be bought in phases as per defined milestones.Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India says, Hinjewadi is the leading IT Hub of Pune and continues to be among the biggest draws for IT-based corporate occupiers as well as private equity investors. This M&A deal had been carefully structured to ensure optimal value for both parties.BlueRidge SEZ is an IT SEZ being developed by Paranjape Schemes, one of the largest developers in Pune.Aditi Watve, COO BlueRidge says, Phase One of the SEZ has approximately 1.45 million sq ft of leasable space and is already operational, with key tenants such as Accenture, Cisco and L&T. The closing of this deal is undoubtedly one of the highlights of our relationship with Jones Lang LaSalle India over a number of years. We found JLL a well-networked, client-focused partner who helped us achieve the right valuations and find the right investor.Jones Lang LaSalle India was instrumental in raising the private equity capital for this project in 2007 on behalf of Paranjape Schemes. This deal definitely underscores Punes continued and ever-increasing potential and attractiveness as a IT destination of choice.CopyrightsecuredbyDigiprove2013JonesLangLaSalle 0 CommentsCategories: Anuj Puri Quotes, Commercial Property, India Property, Jones Lang LaSalle, Press Releases, Pune, Pune, Real Estate, Real Estate Capital markets, SEZ Alchemist Buys 20 Acres For Residential Development At Bengal Aerotropolis Projects Ltd, Durgapur28. May, 2013 by Administration 0 Comments

Jones Lang LaSalle Facilitates West Bengals Largest Land Deal This YearKolkata, May 28 2013: Alchemist Township India Limited, a Delhi-based real estate developer, has bought 20 acres of prime land in the Aerotropolis being developed by Bengal Aerotropolis Projects Ltd (BAPL) at Durgapur, 180 kilometres from Kolkata. Leading international property consultants Jones Lang LaSalle India were the transaction mediators for this deal, which is West Bengals largest land transaction in 2013 to date.This acquisition marks Alchemists formal entry into the East India residential real estate space, states a company spokesperson. We are on an aggressive expansion and diversification drive, and the Durgapur Aerotropolis undertaking will be the first in several forays into the residential real estate domain. At Durgapur, we will be focusing on the budget homes segment.This project envisages developing 2.4 million sq. ft. for housing. The company has set a target to develop 10 million sq. ft. for affordable homes in Eastern India, which will include Bengal, Orrisa, Assam, Bihar and Jharkhand.BAPLs Aerotropolis (or Airport City) is a massive project in Durgapur which is poised to reshape the aviation and industrial map of Eastern India. With Changi Airports International one of the worlds largest airport management companies as a 26% equity stakeholder, the Durgapur Aerotropolis will have the countrys first privately-owned and operated airport. The Aerotropolis is a unique urban development model that places the airport at its core, to act as a major economic growth driver for areas surrounding it.Mayank Saksena, Managing Director Land Services, Jones Lang LaSalle India says, We have already seen the Aerotropolis model successfully implemented in Hong Kong, Singapore and Dubai. The Durgapur Aerotropolis is definitely going to change the socio-economic profile of the Durgapur-Asansol region, and is all set to become a major game-changer for West Bengal. Alchemist Groups acquisition of this massive land parcel for residential development is important not only because it the largest in West Bengal this year, but because it will be a vital chapter of real estate history in the making. The Durgapur Aerotropolis is going to be one of the most dynamic employment generators in the region and indeed in India.Partha Ghosh, Promoter Director Bengal Aerotropolis Projects Ltd says, This acquisition is a significant milestone for BAPL as well as the Alchemist Group. We are talking about the formation of a new metropolitan destination in Eastern India, which will rival Kolkata. The Durgapur Aerotropolis is already attracting substantial investments into industries, services and associated sectors not only from organisations in Bengal but from across India as well as globally.CopyrightsecuredbyDigiprove2013JonesLangLaSalle 0 CommentsCategories: Affordable Housing, Jones Lang LaSalle, Kolkata, Press Releases, Project Development, Real Estate, Real Estate Trends, Residential Property Retail In Asia Pacific Mercury Rising Beyond India And China22. May, 2013 by Anuj Puri 2 Comments Reflecting the improving economic sentiments within the Asia Pacific region, retail is once again emerging as a preferred asset class for investors who see consumption as being closely aligned to the regions growth.China will witness the retail wave rise in its next 50 cities even as Hong Kong continues to leverage its proximity to the mainland to fuel its retail boom. Meanwhile, India still awaits the new FDI norms to kick-start investments.However, interest is also rising for the favourable demographics of Philippines, Thailand, Sri Lanka and Indonesia, where evolving consumer preferences influence expansion strategies for retailers. The retail market drivers in these countries are a growing middle class and the growing share of young, generously salaried and highly aspirational population from the IT/ITeS sector. Similar to what is being seen in India and China, the Governments of these countries are in various stages of opening up the retail markets for foreign participation.Like India, the Philippines benefits from a considerable young English-speaking talent pool and service-oriented culture. The resultant high incomes and a enhanced level of overseas worker remittances are driving domestic consumption. With massive strides forward in infrastructure, utilities and tourism (all of which attract investments) we foresee enhanced job creation, which will directly influence consumption. The fact that the Philippines currently has four of the worlds 12 largest malls stand testimony to this.Despite various setbacks, retail consumption in Thailand has expanded by more than 50% over the past decade. In the past five years, Bangkok has received 1.73 million square meters of new modern retail space an impressive increase of 49% from 2008. Apart from continued economic growth, rising incomes, new residential catchment areas and the evolution to modern retail formats, Bangkok also benefits from its vastly improved mass transit infrastructure.Sri Lanka particularly Colombo is another retail hotbed attracting a lot of attention. It has witnessed a steady upward trend in the IT/ITES sector during the past decade, with several off-shore centres now operating in the country. Colombo already has eight operational shopping malls, with an average vacancy rate of only 3-8%. Another 1.05 million square feet of organized retail space will be added in Colombo by 2015.This implies that, from a geographical expansion into the Asian markets, retailers are advised to adopt a two-pronged approach Vertical penetration into existing markets such as China, India and Hong Kong, and a flanking strategy for countries such as Philippines, Thailand, Sri Lanka and Indonesia.Anuj Puri, Chairman & Country Head, Jones Lang LaSalle IndiaCopyrightsecuredbyDigiprove2013JonesLangLaSalle 2 CommentsCategories: FDI In Retail, Malls, Real Estate Research, Real Estate Tips, Real Estate Trends, Retail Properties, Retail Real Estate The Role Of Lenders Engineer In Developer Loan Approvals16. May, 2013 by Pallav Saxena 1 Comment A Little-Known But Increasingly Important FunctionThe lenders engineer (LE) is a representative of lending institutions such as banks and NBFCs. His function is to audit a project from the technical standpoint when a developer seeks funding for it. This is a process which risk/compliance teams have, over time, hard-wired into funding proposals by developers.The obvious intention behind this requirement is to identify, mitigate and hedge the lending institutions risks with regards to the technical aspects of construction.The key risks include: The developers potential inability to service the debt The potential use of the funds for purposes other than what they were allocated for Construction progress not keeping pace with disbursementCurrently, the RBI has not mandated any regulations in this regard. The requirement of a Lenders Engineer is a factor of the risk and compliance parameters of individual lending institutions.To safeguard the interests of all concerned, lenders have to ensure that the appointed LE has performed a sufficiently detailed review, provided the correct information and reviewed all the construction risks. Meanwhile, there is a recurring question in the minds of developers what is the value they derive from paying for a lenders engineer? Is the mandatory rubber stamp all that they can expect?The fact is that they can and should derive a lot more value than this from such professional services.The True Lender Engineer Value PropositionA knowledgeable, involved and neutral Lender Engineer can bring tangible and definite advantages that go beyond the stamp of approval to the developers table. The benefits of such a LEs services in terms of project monitoring are, in fact, not limited to providing security to lending institutions they are also an important component of risk management and value addition for the developer himself.Backed by sound technical knowledge, the LE plays a vital role in overall project monitoring and coordination by providing steady technical feedback. These inputs can help developers to present a more accurate and convincing picture of the projects progress at construction control meetings.Also, these expert inputs can help reduce the chances of project failures due to: Conflict among the various project participants The project managers lack of information or knowledge Indecisiveness among project participants on key decisionsA professional project development and monitoring agency brings in best practices on processes which developers might not have adopted yet, and increased efficiency in the development process will always lead to a better product. Also, proactive identification of risks can lead to better planning / early value engineering, which can subsequently lead to savings upto 10% on the project costs.It is recommended for lenders to involve a LE at the pre-investment stage, since this will ensure that risks like labour availability, uncovered project costs and overall specification and project cost can be identified in time. This is particularly relevant in light of the fact that new construction technologies are emerging constantly. Both the lending institution and the project developers must aware of these technologies and the cost benefit analysis before they can be leveraged for a more efficient project development.Social factors like environmental, health and safety practices are factors which require far greater emphasis than they are currently being accorded in the Indian construction industry. Only a neutral, qualified person whose concerns extend beyond mere time and cost savings can provide impartial guidance on these concerns. In these areas, the LE can by virtue of his function and expertise is in a position to provide inputs that can have a significant impact.To illustrate in the case of a large residential construction, a LE helped a major developer to manage labour attrition by providing value-adding facilities such as on-site crche and medical aid centre.What To Look For In a Lenders Engineer Ethics is the key quality. Innumerable areas in a construction project can remain invisible to the untrained eye and can only be identified with technical involvement. These areas must not only be brought to light but also brought to the notice of all stakeholders. A construction project has various components to success. The technical aspects range from geological factors, architectural design aspects, civil construction and the use of the most efficient mechanical and electrical equipment & services. The appointed LE must be able to understand these complexities and help ensure that the project has the benefit of an optimal mix of architects, civil engineers and mechanical and electrical engineers. A technical analysis is incomplete without use of technology. The LE must be proficient in the use of technology to be able to ensure sound risk management and progress mapping. The LE must be able to translate technical information into inputs that are relevant to the financial participants in the project these could include payback period and factors that impact returns. The primary scope of a LE includes providing expert insights on the availability and applicability of statutory approvals for a project. The LE must have deep knowledge of statutory aspects and approvals, and must utilize a system to review such approvals through predefined checklists.For all these reasons, professional Project Management firms with the benefit of global exposure translated into local implementation are best suited to provide Lenders Engineer services.Current Points Of DilemmaThe appointment of a LE is often a matter of some dispute, since the LE is appointed and paid by the developer but provides the report to the lending institution. Nevertheless, the appointment of a LE is a requirement and all the developer expects to get in return is a stamp of approval. This is a very limited and, in the case of the developer, self-defeating way of looking at the whole issue.The LE needs to be considered as a partner in delivering a better product by both the project participants. This new level of awareness is already being witnessed in the case of private equity investors who have better technical monitoring service providers on board, because they have a stronger say in the projects overall development process.At the same time, lending institutions need to have a more scientific basis on which pre-qualification for lenders engineers takes place. This will permit professional project management companies with better resources, capabilities, scientific risk analysis processes to provide better data and, above all, higher ethical practices to provide higher value. Lenders, as key project partners, should have a stronger say in identifying their representatives.This will ensure that the projects development focuses on a higher quality of real estate products which take into consideration the social aspects of construction such as safety, health and environmental impact.

ims and ObjectivesNAREDCO functions as Development & Promotion Council for housing & real estate sector in India. Its main objectives are: ITo promote excellence and high standards of operations based on just and equitable principles in transactions relating to various operations of real estate business including building, construction and marketing.

IITo evolve criteria of real estate and construction industry and its various allied operations and to formulate a Code of Ethics for observance by all real estate developers, builders and marketing operators and to evolve a suitable ombudsman mechanism for investigating departures there from.

IIIRating of developers and their projects through CRISIL/ ICRA supported by NAREDCO-NHB rating mechanism.

IVEstablishment of data bank, which will collect and circulate information on all matters connected with the real estate sector.

VTo set up a National Institute of Real Estate Development (NIRED) as a center for studies, research, training and certification.

VITo promote, encourage, facilitate and assist the establishment of state bodies of NAREDCO in various parts of the country, REDCOs.

VIIPromotion and encouragement of co-operation among all enterprises dealing with and engaged in various aspects of real estate development.

VIIIParticipation in the formulation of national policies and agenda for real estate development and fiscal reforms.

IXTo organize meetings, symposia, workshops, seminars and conferences on issues relating to real estate, building construction and allied activities.

XTo identify and strengthen industry's role in the economic development of the country

XITo act as a catalyst in bringing about the growth and development of Indian Real Estate Industry

XIITo create awareness and support industry's efforts on quality, environment and consumer protection

XIIITo promote cooperation with counterpart organizations

An Example of Marketing Plan Objectivesby Kate McFarlin, Demand Media Every business plan needs a section that contains marketing objectives. This is the spot in the business plan where a small business owner details how he will plan to market his new venture and illustrates why the business is a solid choice. Without proper marketing objectives, finding funding for a business venture may be nearly impossible.Sponsored LinkBudget Flats in MurbadLuxury 1/2 BHK Flats Near Mumbai at Tarangan, Murbad. 12.2 Lac Onwards!DishaDirect.in/FlatsInMurbadRealistic ObjectivesRealism is vital when detailing marketing objectives. Yes, you may want to sell 1 million widgets in your first year of operation, but that is not a realistic goal. It is much more realistic to set a reasonable sales goal and then detail how you plan to achieve that goal. For example, "X Business will target tech savvy consumers with a mix of online and offline advertising to highlight the widget and its capabilities. Initial sales estimates from these marketing avenues are estimated around 100,000 units."Measurable ObjectivesRight in line with realism, you have the ability to measure the results of your objectives. Stating that you want everyone to instantly fall in love with your brand is neither realistic or measurable. If you are going to say something, you have to have a method in place to back up the data and prove that you are accomplishing your objectives. It would be much better to state, "Our teddy bear marketing efforts over the first year will be focused on a local level through various promotions. We intend to introduce X number of people to our brand during this time and encourage their continued interest through ad campaigns and local events."Time-Based ObjectivesYour marketing objectives need to be achieved within a certain amount of time to be feasible. No one would invest in a company that claims it will make $1 million "someday." Setting specific timetables for marketing objectives is vital. Put it in terms of what you plan to accomplish within six months, one year, five years and further in the future. Then back it up with how you plan to achieve those goals within that timeframe.Including the Four "Ps"The four "Ps" of marketing include Product, Price, Promotion and Place. Each of these four things need to be included in your marketing objectives. The reader of your business plan needs to fully understand the product you are offering, the price you intend to set for retail and wholesale sales, how to you plan to promote the product and where you will distribute it and market it. By including these four "P's" you're giving your reader everything he needs to know.Sponsored Links