Sanjukta Di Ppt

8/2/2019 Sanjukta Di Ppt

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REAL ESTATE MARKET

By: Arata Ranjan Rout


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Real Estate ?

Real Estate is "Property consisting of landand the buildings on it, along with its naturalresources such as crops, minerals, or water;immovable property of this nature; aninterest vested in this.


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Main participants in Real Estate Markets

are: Owner/User - These people are both owners as well as tenants.

They purchase houses or commercial property as an investmentand also to live in or utilize as a business.

Owner - These people are pure investors. They do not consume

the real estate that they purchase. Typically they rent out or leasethe property to someone else.

Renter - These people are pure consumers.

Developers - These people prepare raw land for building whichresults in new product for the market.

Renovators - These people supply refurbished buildings to themarket.

Facilitators - This includes banks, Real Estate Brokers lawyers, andothers that facilitate the purchase and sale of real estate.


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Corporate Real Estate

Corporate real estate is a term used to describe the realproperty held or used by a business enterprise ororganization for its own operational purposes. A

corporate real estate portfolio typically includesa corporate headquarters and a number of branchoffices, and perhaps also various manufacturing andretail sites


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In 2009

The global financial meltdown has had the first levelimpact, which was great for real estate sector.

The drop in interest rates from 11.5% to 9.25%

combined with a reduction of15% in real estaterates has resulted in an increase in purchasingpower of 33%.

In 2009 the customers who have deferred

their home purchases in 2008 take the decision andpurchase their homes given the affordability impactas well as the tremendous need for homes in the

country.


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In 2011

The real estate sector in India is on a growthpath. The development in the real estatemarket encompasses growth in both

commercial and residential spheres. Further,it has been estimated that there would beshortage of 26.53 million houses during theEleventh Five Year Plan (2007-12)


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During April-September 2011-12, the Indian real estate andhousing sectors received US$453 million in foreign directinvestment (FDI), according to

the Department of IndustrialPolicy and Promotion India(DIPP).

During 2011, Hyderabadattracted the highest

investment of US$ 190 millionfollowed by Chennai US$ 143million, NCR (national capitalregion) US$ 66 million andBangalore US$ 22 million, as perthe JLL report.


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Real Estate in Kolkata

A rapid industrialization and creation of a betterinfrastructure has contributed to development of RealEstate in Kolkata.

The Real Estate in Kolkata is also driven by the

following factors: Lower land acquisition cost

Attractive government initiatives

Lower asset prices

Availability of scalable infrastructure


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Prices Kolkata

Prices of Kolkata real estate have shown a steepupward graph- especially in South and Southcentral Kolkata where the price per square feet

has risen a mind blowing Rs 800 in just sixmonths!

For example real estate prices in Bhawanipore

has risen to Rs.3000 from Rs.2,200 in only sixmonths.

The other boom areas are the EasternMetropolitan Bypass area and the new Rajarhat

township.


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The unprecedented price rise in Kolkata RealEstate is seen in south Kolkata localities likeBallygunge,Prince Anwar Shah Road & Elginroad. The factors behind such a steep rise inselect localities are the limited availability of realestate options, successful retail and commercialprojects and improved connectivity withimproved urban road build quality.

The inflow ofForeign Direct Investment (FDI)has also led to an appreciation of the overallquality of real estate projects.


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2012 Forecast

As the economy shows signs ofdecreasing GDP growthrate, the Indian real estate industry faces its own share ofconcerns. Real estate developers are reeling under high

debt and FDI inflows have also slowed down. The recentincrease in home loan interest rates is expected todampen the sales even further.

The absorption rate meaning the ratio of sales over

inventory in the market

is likely to be low, and theincidence of new launches will decline.


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Conclusion

We will see a slowdown in constructionactivity for the time being.

However, as demand improves, improvingsales will benefit developers who will focus onexecution of their on-going project portfolios.

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