REAL ESTATE SCENARIO IN INDIA The size of the Indian real estate market is estimated at USD 12billion and

it is currently growing at rate of about 30% annually. Real-estate lending by banks has increased by 3.78 times in the last two years, forming 18% of the total bank credit. Strong and improved economic growth, proactive policy initiatives like relaxation of FDI in construction and availability of finance (institutional and retail) has driven the demand for real estate across all sectors - Commercial, Residential, Retail and Hospitality. Also, there is an increased focus towards development of

The real Estate sector is currently worth US$ 12billion, it is growing at the rate of around30% annually and has a potential to grow to a whopping US$ 45 50billion in the comingfive years. People all across the Asia Pacific region are viewing the real estate sector in thecountry as the most lucrative one and thus offering great prospects in the near future inrespect to contribution to the nation s growth. Five per cent of the country s GDP iscontributed by the housing sector. In the next three or four or five years this contributionto the GDP is expected to rise to 6%. According to the report of the Technical Group onEstimation of Housing Shortage, an estimated shortage of 26.53 million houses during theEleventh Five Year Plan (2007-12)has been identified

Special Economic Zones (SEZ) in India. The last few years have seen Indian market mature through regulatory reforms (rationalization of stamp duties, reform of urban land ceilings), improving products in terms of quality and technology, changing tenant profile (MNCs, and respect for tenancy laws), and improving management and maintenance models (enhanced product life-cycles and sustained project / real estate yields). Although the initial real estate boom was concentrated in places like Bangalore and the National Capital Region of Delhi (including Gorgon), more recently the geographical spread has widened. There has been a significant shift in real estate market from metros to its suburbs and to tier II and tier IIIcities. Lease rentals and occupancies have been picking up steadily and there is an increasing demand for quality infrastructure across various segments of the real estate sector.

Commercial Real Estate The demand for new office space in India has grown from anestimated 3.9 million sq. ft in 1998 to over 16 million sq. ft in 2004-05.70% of the demand for office space in India is driven by over 7,000Indian IT and ITES firms and 15% by financial service providers and

45 years a few years ago. however the organized retail .7million are in urban areas alone. Also. Chandigarh. However.thepharmaceutical sector. Retail Real Estate The Retail industry in India continues to be dominated by individualsmall format stores with floor space of less than 500 sq. South Indian citieslike Bangalore. Total numberof retail outlets is estimated to be around 12 -15 million. ft and is estimated to generate a demand of 150million sq. there is a housing shortage of 19. estimated at USD 36. of space across major cities by 2010. ft. IT/ITES sector absorbed a total ofapprox 30 million sq. which is a mere 3% of the total retail market. This translates into very highopportunities for investors in the residential sector.000 people.35 years from 40. The demand for housing is geographically widespreadwith townships being built in both the metros and the tier II and III cities. like Pune. The housing sector is currently growing at 30-35% perannum. isexpected to account for over 7% of India¶s GDP and 30% of foreignexchange inflows. Low per capita housing stock. The Indian IT-ITES Industry. A proportion of demand is also being driven from investors whoview housing as an attractive investment option as compared to mutualfunds and stocks. Residential Real Estate The residential property market in India constitutes almost 75% ofthe real estate market in terms of value. The retail sector iswitnessing a growth of 5-7% per annum. indicating a youngerbuying threshold. The current size of the organized retail activity is USD 7billion. indicating aretail density of 12-14 outlets per 1. ft. which is one of thehighest in the world.rising disposable income coupled with easy availability of finance fromthe housing finance companies and banks are driving demand in thissector. Chennai and Hyderabad along with NCR (NationalCapital Region) continue to attract the major share of IT/ITES andbusiness investment.3 billion in 2006has grown at a CAGR of 36% over the last decade and by 2008.ft.In India. secondary cities. Kochi and Kolkata are now emerging as the new preferreddestinations for these companies due to their cost and infrastructureadvantages.4 million units out of which 6.Indore. In 2005 alone. The retail sector in India is currently estimated atUSD 230 billion. Average age of housing loan borrowers have decreased to30. Cumulative demand for office space in India overthe next two years (2006-08) is estimated to be in excess of 45 millionsq.

Jaipur in Rajasthan andBhopal in Madhya Pradesh). Special Economic Zones The upcoming realty trend in India after multiplexes and megahousing projects are the Special Economic Zones (SEZ).300 crore oninfrastructure. Seeking the permission for SEZs are also a number of realestate developers. Hindalco (aluminium SEZ at Sambalpur in Orissa). is planning a 25.Reliance Industries. including DLF. covering30. Udupi in Karnataka andVadodara in Gujarat). The Adani group is also setting up an SEZ at Mundra. and it proposes to invest Rs 7. 189 proposals havealready been granted approval since the SEZ Act.000-35. Approx.These include SEZs in various segments such as multi-product. for every rupee spent on construction. including those converted fromExport Processing Zones (EPZ) to SEZ. Both developers and corporatehave shown tremendous interest in developing SEZs in the country. Gems and Jewellery. thereby increasing the shareof organized retail activity from the current level of 3% to 15% in thecoming decade. Omaxe. thereal estate sector is estimated to capture about 18-20% of the total FDIcoming to India in 2005-06. Currently.As an indicator. FDI in Real Estate With the opening of the sector for 100% FDI under automatic route. an estimated 75-80% gets added to the GDP.000 acre SEZ inGurgaon and is also the main partner in twin SEZs coming up at NaviMumbai and Maha Mumbai. Textilesand technology intensive industries.000 acres.ispoised to grow at a rate of 25% . 28SEZs are operational in the country. ShipraEstate and Sunny Vista Realtors. Bio-technology. with a combined size of 35. for instance. Other corporate who are in process of setting up SEZsinclude TCG Refineries of the Chatterjee Group (SEZ refinery at Haldiain West Bengal).Information Technology.000 acres. 2005 came into force. The FDI in Real Estate is expected to have a favourable multiplier effect on the economy. The spill-over effect of . Suzlon Infrastructure (hi-tech engineering products andservices near Coimbatore in Tamil Nadu. Ansals. Vedanta Alumina (aluminium SEZ atOrissa).30% per annum and is expected to beworth over USD 30 billion by the year 2010. Parsvnath.Genpact (IT SEZ at Bhubaneshwar in Orissa.

Shop/Office no.. the country saw an influx of globalreal estate developers likeDubai-based Emaar Properties (the largestlisted real estate developer in the world) ± which enetered India in a joint venture with Delhi based MGF Developments MARKETING DEPARTMENT A good Real Estate Marketing Agency always puts specialemphasis on the right kind of information that one needs before startingReal estate Marketing and for that the agency normally conducts somekind of survey to gather the right kind of information. follow-ups of all the business cards that were dropped in at the site office weredone on a daily basis. With the relaxation of the FDI limit. Telephone & Email follow-ups also formed a part of my job.iproperty.Date of purchase.  Customer Database was also maintained considering various headslike. . where the key players are expandingcapacity to meet the soaring demand.this initiative can also be witnessed in important sectors like the cementand construction  Business cards can either by a waste of paper or an effective bridgebetween a prospect and their potential as a long-term client. Promotional strategies were used namely News paper advertisements.  Brokers & agents were also approached to get their clients for thedeals. Visual media ads in local cable channels Direct Marketing(door-to-door) in commercial complexes and Through www.. Area ofthe shop/office in sq. In marketing. Name of the customer. So. Therewas face-to-face interaction with the customers for the sale ofshops/offices by convincing them to buy. Later the Realestate marketing Agency depending on that report develops their waysof marketing.ft.

Total value of Shop/office in Rupees. . TotalReceived(cash/cheque) and Balance amount.

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