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REAL ESTATE DEVELOPMENTREAL ESTATE DEVELOPMENTIN INDIAIN INDIA

PRESENTED BY:CHIRAG M. MORINR10054

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DefinitionDefinition ««.««.

A piece of land, including the air above it and

ground below it, and any buildings or structureson it.

Real estate can include business and/orresidential properties, and are generally soldeither by a realtor or directly by the individualwho owns the property.

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Impact on economyImpact on economy ««..««..India is on the verge of becoming one of the fast-growingeconomics,Factors

I. Multinational entrepreneurialism.II. Local stock markets.III. Robust economy-changing demographics.

The most lucrative sectors in the country.

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Significant roleSignificant roleIt is second only to agriculture in terms of employment generation and contributes to theGDP of the country.

5% of GDP ²housing sector6% of GDP next few year

Construction sector

250 ancillary industries such ascement,steel,paints,brick,timber,buildingmaterials,etc.

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A study by a credit rating agency ICRAConstruction industry ranks third among

14 major sectors of Indian economy.

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The true test of professionalismThe true test of professionalismIn the past seller·s market existed.Now market shifted towards buyer

So, real estate developers now need toconcentrate on profits through highvolume, low margin deals instead of highmargin and high-quality transaction.

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Types of segmentTypes of segment

Residential segment

Commercial segment

Retail segment

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Role of GovernmentRole of GovernmentThe Government·s recently annoucedstimulus packages.Duty cuts on cement and steel.The most recent exception fro real estatedevelopers from service tax.Increased liquidity in the market.

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FactsFactsAlmost 80% of real estate developed inindia is residential space.According to Tenth F ive Year Plan, there isshortage of 22.4 million housing units.Average profit from construction in indiais 18%.FDI into India in the real estate sector forthe year 2008-2009 has been US$12.62billion.

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Reference««Reference««

www.wikipedia.com

www.icra.com

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