Submitted by: Submitted by Dolly
Views: 674
Words: 932
Pages: 4
Category: Business and Industry
Date Submitted: 10/04/2010 11:39 AM
Agenda
Introduction Evolution of Real Estate sector Key drivers Key concepts Classification SWOT Analysis PEST Analysis Life cycle Sources of finance Effect of recession & budget Challenges & future prospects
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Introduction
Real Estate stands for Property (Residential/ Commercial/Industrial) Real Estate Industry requires multiple layers of Finance 11th Five Year Plan (2007-2012) has indicated India’s housing shortage at around 26.3 million units Investor interest, huge investments in infrastructure and rapid urbanization led to growth in real estate
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Market Size & Growth
As per ASSOCHAM estimates
◦ Size of Indian real estate market at US$ 16 billion as of 2008
◦ Growing at 30%
As per UBS estimates
◦ Total economic value for development activity in real estate sector US$ 40-45 billion
Source: ASSOCHAM & UBS 3
Government Initiative & Spending
GOI directed banks to provide more finance to real estate sector Loans provided for housing sector is treated under Priority sector lending
Reduced rate of interest on housing loans
Announced interest subsidy of 1% to home loans up to Rs.10 lakh
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Government Initiative & Spending (Contd..)
Reduction of excise duty on steel
Slum-rehabilitation and mass housing schemes are introduced
Indira Aawas Yojna Liberalization of FDI rules for the emergence of real estate funds
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Major Players
DLF - Land bank of 425 million sq. ft
HDIL - Land bank of 133 million sq. ft. with larger focus on slum rehabilitation
Other major players
◦ Unitech, Raheja, Parsvnath Developers, Sobha Developers
Source : Websites of DLF & HDIL
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Evolution of Real Estate in India
From brokers to reputed builders
Contribution to India's GDP
Rise in commercial sector DLF goes public Employment generator Moving from unorganized to organized
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Evolution of Real Estate in India
6%...