This action might not be possible to undo. Are you sure you want to continue?
(Submitted by: Viswanathan. B) GNIMS
mostly characterized by small players with local presence. fairly fragmented. has assumed great significance. call centres and software programming houses. The real estate market in India mostly continues to remain unorganized. including high-end technology consulting. Its econom ic transformation over the past decade has pushed up real GDP growth to an average of 6 per cent per annum since 1992.1 billion people. Human resources being the key element in the IT industry. Majority of the real estate developed in India (almost 80%) is residential space and the rest comprise office. the real estate sector is the second largest employment generator in India. hotels and hospitals. the hiring and housing of people. given that demand for property is determined chiefly by business development and demographic trends. shopping malls. there is a persistent need to create space for people to work and live. this is the ideal time to invest in the country. Though the real estate sector in India is asserted to be the most promising sector today.Introduction: The size of the real estate industry in India is estimated to be around US$ 12 billion. The persistent demand from the Information Technology (IT) sector has also impacted the urban landscape in India. which in turn sets off the growth of other allied infrastructure. India is the second most populous country after China and it is expected to overtake it by 2030. As such. there is demand for 66 million square feet of IT space over the next five years. this figure is growing at a pace of 30% for the last few years. Its favourable demographics and strong economic growth make the country an attractive place for property investors. both at their work place and home. India is emerging as an important business location. With around 1. Several multinational companies continue to move their operations to India to make the most of lower costs of skilled manpower and logistics. As per estimates. . Evidently. After agriculture. particularly in the services sector. As per studies. it is still hugely plagued by market uncertainties and traditional inhibitions. This incredible growth is mainly attributed to the off shoring business. even as the policy makers have begun to emphasize on developing adequate infrastructure for the country.
and The proposed computerization of land records The trend towards greater organisation and transparency has contributed to the development of reliable indicators of value and the organised investment in the real estate sector by domestic and international financial institutions. and has also resulted in the greater availability of financing for real estate developers. y y Rationalization of property taxes in a number of states. lack of uniformity in local laws and their application. and the lack of transparency in transaction values. y Modifications in the Rent Control Act to provide greater protection to homeowners wishing to rent out their properties. . The nature of demand is also changing. In recent years however. These reforms include: y Government of India support to the repeal of the Urban Land Ceiling Act.Historically. such as the absence of a centralized title registry providing title guarantee. with nin e state governments having already repealed the Act. accompanied by various regulatory reforms. with heightened consumer expectations that are influenced by higher disposable incomes. the real estate sector in India was unorganised and characterized by various factors that impeded organised dealing. non availability of bank financing. increased globalization and the introduction of new real estate products and services. the real estate sector in India has exhibited a trend towards greater organisation and transparency. high interest rates and transfer taxes. Regulatory changes permitting foreign investment are expected to further increase investment in the Indian real estate sector.
the next global business destination Huge margins Cheap labour Weakness: y y Huge investments Highly sensitive to economic condition of the country Opportunities: y y y y Availability of FDIs Increased income of the average Indian citizen Emergence of more nuclear families Emerging markets and expansion abroad Threats: y y y Price war Lots of competition Economic slowdown .SWOT Analysis: Strengths: y y y y y y Huge demand Growing population Availability of home loans India.
ft. (Ansal API). with over 1000 of these in supervisory and managerial positions.5 billion and th e projects in process cross Rs. The group has over 220 million sq. ft. All three are public limited companies. Sales/Revenues/Turnover The Group s turnover is around Rs. residential.000 acres of land over .DLF also plans to develop around 100. of existing development and 574 million sq.Expand core business verticals nationally .Diversify into SEZ development . The core business traditionally has been made up of 3 prime divisions. Ansal s thrust areas would be expansion into hospitality. infrastructure and SEZs.Enhance execution capabilities . India. Ansal Housing and Construction Limited. trust and customer sensitivity.Diversify into hotel development . and a focus on premium locations in Tier II cities of North India. Employing 5000 people nationwide. Name Year of Establishment Company Profile Future Prospects The DLF Group 1946 The DLF group is a leading real estate developer based in New Delhi. . Future Prospects The company intends to shift its focus to value-added development.Some major Real Estate Companies Name Year of Establishment Company Profile The Ansal Group 1965 The Ansal Group is a conglomerate of 35 companies. In September 2006 DLF was the only real estate firm amongst the 60 businesses named Super brands of India under the real estate category. 32 billion.Increase land reserves in strategic locations . To these DLF has added 3 further divisions. and engaged in the entire gamut of civil construction and real estate development activity in India and abroad. 3. with Ansal Properties and Industries Ltd. (ABL) at the core of the Group. DLF is committed to quality. or constructed property. hotels. Of planned projects. (AHCL) and Ansal Buildwell Ltd. commercial and retail. all three companies have acquired the ISO 9001-2000 certificate. and deliver on promises with agility and financial prudence.
Future Prospects Achieve high growth by establishing a pan India presence major economic centres. hotels.the next couple of years. focus on . industrial projects and overseas projects. Real estate development includes the development of commercial as well as residential properties. they have also identified healthcare.Focus on profitable projects that maximize returns. commercial . nationally.retail and hospitality sectors. Their operations span across . Their primary business is the development of properties in the residential. electrical transmission and information technology. Name Year of Establishment Company Profile Unitech Limited 1972 The Group's principal activities are the construction. education and infrastructure as business lines for future growth. The activities of the Construction segment include highway projects. . In addition. . Name Year of Establishment Compnay Profile Emaar MGF 2005 between Emaar Properties PJSC ( Emaar ) of Dubai and MGF Development Limited( MGF ) of India. The Group operates in India and exports engineered construction products to the Middle East. consultancy in related areas.Unitech is eyeing the southern real estate market & has begun a brand building exercise in Chennai. MGF has over the last 10years established itself as one of the key players in retail real estate development in Northern India.Undertake large mixed-use projects like integrated townships in the suburbs of main cities. real estate development.
marketing and execution. project planning.various aspects of real estate development. with an investment of$400 million. Future Prospects Emaar MGF will construct 4 luxury hotels in 3 years. such as land identification and acquisition. designing. They are basically looking at a long-term commitment through integrated master plan communities. . So shopping along with entertainment and a luxury stay is on the offering. Hyderabad and Kolkata and one business hotel under the Courtyard brand in Amritsar. The company is also looking at a tie-up with Global Hyatt corporation for about20 hotels. It will include 3 JW Marriott hotels each in Delhi.
. Prices of property whether it be residential. It's not that only these cities are experiencing an appreciation in the real estate prices. And this current trend will see more and more people investing in the property market in India. Looking at the above factors we can say that as far as property market in India is concerned it is going only in one direction that's upward. Indian real estate market has got a tremendous potential and it will surely be riding high in the coming years. According to market experts.Future of the Real Estate Sector: According to the Investment Gurus and real estate experts 'there is a definite boom in the real estate market in India and that's why many people are going for investment in the real estate in India. This is also proved by the fact that Indian Government has liberalized its foreign direct policy to attract higher foreign investment. property prices have been steadily rising across all parts and sectors of India. It's not that the property prices in India have suddenly seen a rise. may be the appreciation in the prices of property in other parts of India would not be that much. property prices have increased by up to 5 times within a few years. A recent survey has revealed that. Favorable property market and real estate boom has made property investment in India look safe. Taking an example of some of the better developed cities like Noida and Gurgaon. India being the largest democracy with excellent democratic governance and transparent property laws attracts more people for making the investment in the property and real estate market than any other country in the region. India stands on the fourth position among the top four Asian destinations for foreign direct investment. commercial or industrial have been rising in India over the last few years.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.