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PROJECT REPORT
ON
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SYNOPSIS
i Company certificate
ii Declaration
iii Acknowledgement
iv Synopsis
CHEP: 1 INTERODUCTION
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INDUSTRYd
tu PROFILE
CHEP: 3 PROFILE
CHEP: 4
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COMPANY
4.1. History
4.2. What C1 offers…
CHEP: 5 THEORITICAL FRAMEWORK
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1.1 ABOUT STUDY:
The most basic definition real estate is a piece of land, including the air above
it and the ground below it, and any buildings or structures on it. Real Estate can
include business and/or residential properties, and are generally sold either by a realtor
or directly by the individual who owns the property (for sale by owner).
The Real Estate/property is considered to be the second largest employment
sector and the most emerging industry in India. The way people prefer to invest in
properties of different kinds and boom in construction activities all over the country is
the matter to be known. The trend in property market, kinds of investment in real
estate, hotspots for investment in various regions, Price fluctuations and growth rate of
industry, etc. are the contents to be studied. The study has been undertaken as the
project work undertaking the growing importance in the Investment matters and its
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contribution to the aspects of economy. The study explains the importance of the real
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estate sector, its current trends and future prospects of investments, its characteristics,
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advantages and disadvantages of investments. Also various methods of finding out the
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investment values, considerations while investing in real estate properties, government
regulations, etc.
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If any work is to be carried out, it has its own some problems and
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limitations. This project work is faced by the following major limitations:
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1). For the preparation of this projectm
a report, it demand a quantum of time.
yncompletion of the project work.
The limited time hassled in the
dfinding derived here are as per my limited
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2). The conclusions and
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Sand knowledge.
understandings
3). There is lack of specific methods of calculation and proper statistical
tools.
4). The project report is largely based on the secondary data.
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Research can be defined as the search for knowledge, or systematic
investigation for the purpose of discovering, interpreting and concluding the subject.
The research work is carried out in order to find out solutions to the questions.
The research type undertaken in this project work is the Exploratory Research design.
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It is a type of research conducted for deriving systematic solutions. It should draw
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csecondary research such as
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definitive conclusions. This research often relies on
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reviewing available literature and data, or qualitative
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discussion.
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2.2 Data Sources: d
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S the project report comprises the process of collecting and analyses
Preparing
data. The report is prepared on the base of two types of data, primary data and
secondary data.
Primary Data:
Primary data are those data that are collected by research. Such data are already
exists. I have collected such kind of data by asking questions and queries to the
managers, personnel and employees of the company. Such data are recorded in the
books.
Secondary Data:
The project report is largely comprises the secondary type of data collection.
Such type of data are already exists that are collected previously by others. The sources
of secondary data are newspaper, magazine, websites, books, etc.
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Real estate sector in India is witnessing tremendous boom. Real estate industry in
India is presently worth $12 billion and is growing at the rate of 30 per cent per annum.
The importance of real estate sector in India can be gauged from the fact that it is the
second largest employer next only to agriculture. The real estate industry has
significant linkages with several other sectors of the economy and over 250 associated
industries.
Indian real sector has seen an unprecedented boom in the last few years. This
was ignited and fueled by two main forces. First, the expanding industrial sector has
created a surge in demand for office-buildings and dwellings. The industrial sector
grew at the rate of 10.8 percent in 2006-07 out of which a growth of 11.8 percent was
seen by the manufacturing sector. Second, the liberalization policies of government
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have decreased the need for permissions and licenses before taking up mega
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construction projects. Opening the doors to foreign investments is a further step in this
direction. The government has allowed FDI ina the real estate sector since 2002. FDI
was deemed necessary in the view of makingmthe sector more organized and increasing
aadjacent to the metro cities have experienced
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professionalism farmers. The villages
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sky-rocketing land prices. This has induced farmers to sell their land for good money.
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EightySpercent share of the real estate market is garnered by residential sector
and the rest is comprised of offices, shopping malls, hotels and hospitals.
Real estate companies are coming up with various residential and commercial projects
to fulfill the demand for residential and office properties in Tier-II and Tier-III cities.
An estimated shortage of 26.53 million houses during the Eleventh Five Year Plan
(2007-12) provides a big investment opportunity.
→ in the year 2009-10 the total constructions sector size was Rs. 488,345 caror as per
The Central Statistical Organization.
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Customer First
Company Profile:
product
Mf pms
Equity m
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Real .
estate
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C1 OFFICES: d
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Head office: Vishwakarma Arcade, Majura Gate, Surat-05.
Corporate office: Opp. Seth R. J. J. Highschool, Junathana,
Navsari-396445.
Branch Offices: Bardoli, Vyara, Vapi, Gandevi, Valsad, Billimora, chikhli,
Ankleshwar, Ahmedabad.
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What is Investment...
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Foreign assets denominated in foreign currency
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Investment comes with the risk of loss of the invested sum of money. The
investment that has not been thoroughly analyzed can be highly risky with respect
to the investment owner because the possibility of losing money is not within the
owner’s control. The above listed all the investment instruments possesses less or
more chances of risk.
5.1 Classification of Properties:
Types of
Property
(B).
(A). Residential (C). Vacant
Commercial
Property land
property
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S Property:
(A). Residential
The residential type of property is by far the most popular with both new and
experienced agents. Residential property offers a good investment avenue. People buy
residential property for two important reasons:
• For staying
• As an investment
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►►Advantages of Investing in Residential Property
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Expenses, including depreciation on the property and interest on your
borrowings, are tax deductible. m
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You make money as the value of the property increases.
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You can leverage your investment.
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You get rental income.
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►►Risks of Investing in Residential Property
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Commercial real estate property types include duplex homes, and other construction
for habitation by multiple family groups. Condominiums are frequently called multi-
family because of their construction as a group, but are normally listed and sold as
single family residential units. Duplex homes are also frequently listed and sold as
residential units to a buyer that lives in one side and rents out the other.
2. Retail Space Real Estate Properties:
This category would include single buildings used as stores for clothing, electronics
and other consumer products, as well as malls, strip centers and the like. Restaurant
spaces are a specialty subset of the retail category, with some listings shown as
restaurant/retail. Valuations can be based on size and land value, retail sales per square
foot or other investment return calculations.
A single building designed for office use, or a group of offices in a single building or
cluster of buildings would fall into this category. When offices are grouped in
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structures with single ownership, they are listed as commercial office rental property.
The owner derives income from the rental payments ofc
. the office tenants. These can be
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valued based on the rental income return on investment, rather than methods using
square footage and land value. Medical &m
a Dental offices are a subset.
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(C). Vacant Land d
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Land Investment has historically been the forte of large development companies,
rich farmers or wealthy individuals. It can be a profitable business if proper
development of land is undertaken. Land Investment is referred to as a long term
investment and with land prices on the rise in many parts of the world, it is said to be
the safest and smartest way of investing ones money.
Capital gains can easily be realized from land when land price increases. The
most striking feature of land investment is that investment takes place in a tangible
asset which the investors can readily put into use. It is a branch of real estate
investment which is gaining ground as major part of capital budgeting analysis. Real
estate is basically defined as immovable property such as land and everything
permanently attached to it like buildings. It is essentially at this juncture that land as an
asset differs from real estate as it does not necessarily includes buildings and the
attachments to the land.
Land is perhaps the most basic asset that we want to invest in and may include vast
open tracts with no significant estate on it. The job of developing the land lies with the
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developer, and with proper care to include modern houses and the associated
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amenities, it will significantly appreciate its value. Land situated close to developed
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areas will cost more as opposed to those in less developed areas. Land developed for
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commercial purposes and those developed for building residential complexes will have
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different prices and tax implications, if any.
Investing in land can be profitable as there is limited supply of land and the purchaser
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can really sell dear if he wants to.
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5.2 CHARACTERISTICS OF REAL ESTATE INVESTMENT:
Real estate properties have its own some important features. Some of the
characteristics that make real estate unique as compared to other investment
alternatives are as follows:
(1). Tangible:
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Real estate is, well, real! You can visit your investment, speak with your tenants, and
show it off to your family and friends. You can see c
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. it and touch it. A result of this
a control over the investment - if
attribute is that you have a certain degree of physical
something is wrong with it, you can trym fixing it. You can't do that with a stock or
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bond.
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(2). Requires Management: d
Because real estatetisu tangible, it needs to be managed in a hands-on manner. Tenant
complaints mustSbe addressed. Landscaping must be handled. And, when the building
starts to age, it needs to be renovated.
(3). Inefficient Markets:
An inefficient market is not necessarily a bad thing. It just means that information
irregularity exists among participants in the market, allowing greater profits to be made
by those with special information, expertise or resources. In contrast, public stock
markets are much more efficient - information is efficiently dispersed among market
participants, and those with material non-public information are not permitted to trade
upon the information. In the real estate markets, information is king, and can allow an
investor to see profit opportunities that might otherwise not have presented themselves.
(4). High Transaction costs:
Private market real estate has high purchase costs and sale costs. On purchases, there
are real-estate-agent related commissions, lawyers' fees, engineers' fees and many other
costs that can raise the effective purchase price well beyond the price the seller will
actually receive. On sales, a substantial brokerage fee is usually required for the
property to be properly exposed to the market. Because of the high costs of “trading”
real estate, longer holding periods are common and speculative trading is rarer than for
stocks.
(5). Lower Liquidity:
With the exception of real estate securities, no public exchange exists for the trading of
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real estate. This makes real estate more difficult to sell because deals must be privately
When it comes to making money, Real estate is considered to be one of the surest
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investments. Lots of opportunities abound, whether it be in the stock market or in
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business. But these areas also offer a significant amount of risk. As a result, most
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people do not engage in these speculative activities. But real estate is something which
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more people can be involved in, simply because everyone needs a home to live in.
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However, no investment is entirely risk free, and so even here a certain amount of due
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diligence is required.
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Some important point you need to think about:
1. Who is the developer?
2. Is the project a self development / partnership or joint venture?
3. Past business / trading history
4. The location of the proposed project
5. Basic amenities
6. The growth prospects of the neighborhood development
7. Industrial and business development in the locality
8. Price comparison analysis
9. Future property price valuation
10. What are the returns on your investment?
Affordability is a key consideration when making any purchase. One should factor
additional expenses such as electricity and property taxes to get a complete idea of how
much can be afforded.
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property market in the area where he want to set up the project. A marketability study
tries to create a market area demand model based on available demographic information
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and the application of common sense to develop a picture of the current and future
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market area trends that may effect demand.
2. S Study:
Feasibility
Feasibility Study typically involves testing geographic locations for
a real estate development project, and usually involves packages of real estate land.
Developers often conduct feasibility studies to determine the best location within a
jurisdiction, and to test alternative land uses for given packages. Jurisdictions often
require developers to complete feasibility studies before they will approve a permit
application for retail, commercial, industrial, manufacturing, housing, office or
mixed-use project. Market Feasibility takes into account the importance of the
business in the selected area. Could the project be built?, Can the site support a
building structure that is planned?, etc. should be check out.
3. Property Identification:
Property identification refers to the type of project which the builder has to
plan. It mean whether put residential or row house or to put specific commercial project
looking at the locations and demand for the market. Property identification generally is
driven by demand of type of property in the market.
5. Property Acquisition:
Generally, property acquisition refers to a person or other entity acquiring
title to real property by a deed. A deed is the legal instrument used to transfer
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ownership in real estate. Real property can also be acquired by inheritance and by a
court order.
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6. Planning & Designing of Project:
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Planning and designing is carried out only after finishing the above legal
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works. It is concerned with the proper plans and the design of the project that the
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developer is going to construct. Here, builder can approach architects to develop
plan and design as per the requirements of builder.
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7. Budgeting:
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the real estate project should be optimal as per the plan and designs of the structure.
Budgeting needs to analyze the size of the projects.
8. Regulatory Approval:
After the plans and design of the projects, it needs to be submitted the
same at the concerned govt. authority (Municipal Corp./Municipality) for further
verifications and approval for the project. If authority finds no objections, then after
they can arrive at decision for approval and sanction of project.
9. Project Mgt./Construction:
If government regulatory approvals and project get sanctioned by
authority, then after builder can take step further to start initial work of
construction. A project management team also has to form for various aspects of the
project of residential or commercial. At regular interval of time, govt. executives
checks the work whether is going as per the criteria.
10.Marketing Plan:
While developer put the marketing plan for the project he has put. On the
bases of demand for the housing and location. As a promotional efforts and
marketing for the project Hoardings, newspaper ads. attractive schemes, agent/
broker approach has to be followed.
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Below are some of the main points that were made along the way:
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•Real estate investments fall into one of the four following categories: private equity,
public equity, private debt and public debt. Your choice of which one to invest in
depends on the type of exposure you are seeking for your portfolio.
•Real estate is tangible, so it requires ongoing management. On the other hand, you
also have an increased ability to influence the performance of a single investment as
compared to other asset classes.
•Some of the benefits of adding real estate to a portfolio include: diversification, yield
enhancement, risk reduction and inflation-hedging capabilities. However, real estate
also has high transaction costs, can be difficult to acquire and it is challenging to
measure its relative performance.
•Buying real estate requires substantial due diligence to ensure that you're getting what
you expect after you close.
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•The way to determine the value of your property (other than actually selling it) is to
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have it appraised by an accredited appraiser.
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5.4 ADVANTAGES AND DISADVANTAGES OF REAL
ESTATE INVESTMENTS:
ADVANTAGES:
Investing in real estate is as advantageous and as attractive as investing in stock
market. Here are the main benefits of investing in property market.
► Real Estate Investments are Less Risky:
As compared to other investments, less of misadventure is involved in a real estate
property.. Real estate investments are traditionally considered a stable and rich gainer,
provided if one takes it seriously and with full sagacity. The reasons for the real estate
investments becoming less risky adventure primarily relate to various socio-economic
factors, location, market behavior, the population density of an area; mortgage interest
rates stability; good history of land appreciation, less of inflation and many more.
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located in maintained geographical areas, showing high demand, have an above
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average appreciation. In such centrally located and high demand areas, the average
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appreciation can reach up to 25% in a year. a
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► Low Inflation a
ynthe products, commodities and services, or putting it
Inflation is the rise in the prices of
d in your capacity to buy or hire the services. Supposing, a
tu$10 a decade back, will now cost $ 100 as the result of inflation.
another way, it is the decrease
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commodity was worth
Comparatively, real estate sector has minimum rate of inflation.
► Tax Exemptions
You get various tax exemptions on your principal and investment income
property. The tax exemptions available in real estate property investment are more than
available in any other investment. In other investments, you lose terribly on the
investments in your bank in the form of inflation and high taxes therein, but in real
estate; you don't actually have such hindrances.
There are several beneficial provisions in the Income-tax Act, 1961 which
promote investment in residential properties, having regard to the need for housing
millions of citizens. Of course, only those who pay taxes can take advantage of the
appropriate incentives given under the law.
Interest payable on loans taken for purchase or construction of house is deductible to
the extent of Rs 1.5 lakh every year, though the annual value of one self-occupied
residential property is exempt from income-tax. In addition, repayment of the
installment of housing loan is deductible to the extent of Rs 1 lakh per annum under
section 18-C.
► High Return on Investments
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Real estate investment gives you potentially high Rate of investment before and after
the taxes levied on your income. In fact, investing inc
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► Net Positive and High Income a is Generated.
► Increased demandy
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for properties.
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DISADVANTAGES
Beside the large potential of return on Investments, there are certain levels of
Disadvantages. These disadvantages can be easily taken off, if you have an insight
about the limitations of real estate investment and what can be its short term as well as
long-term repercussions.
► Taking Wrong Decisions
People going for the real estate investment property take decisions in haste. Make a
firm decision when you go for purchasing your first real estate property, is just not
easy man. If you are swayed by emotions, you will be ruined.
With your real estate investment, you need to know one thing straight, and
that is you simply cannot aspire hard cash immediately. You have to wait and watch
the market movements and other socio-economic and politico economic factors before
selling your real estate property, like a mall or your home.
Real estate market is variable. The price of two real estate properties can vary
a great deal, provided you keep other factors such as time and location, constant. No
two real estate properties can have exact. There always exists kind of variation and this
need to be taken into account. Though, you do have the existing rule of thumbs and set
strategies, but all these are workable, if tried in combination.
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5.5 The Factors that affects the Real Estate market:
•Supplier, •Social,
•Cost, •Legal,
•Competitor •Political
Micr Macr
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Micro factors;
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c the property market
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There are certain Micro factor that influences
and its aspects. Suppliers, Cost of materials, firm’sa competitors and also marketing
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intermediary are the major elements that have effect on property business.
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Macro Factors:
Factorsd
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Macro environmenttwith generally influences reeal estate industry in large scale.
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5.6 Government regulations in Real Estate sector:
Much of the over 100 laws governing various aspects of real estate in India dates
back to the 19th century and major amendments to existing laws are required to make
them relevant to modern day requirements. The Central laws governing real estate
include:
The purpose of this Act is the conservation of evidence, assurances, title, and
publication of documents and prevention of fraud. It details the formalities for
registering an instrument. Instruments which it is mandatory to register include:
Property Tax:
Property tax is a levy charged by the municipal authorities for the upkeep of
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basic civic services in the city. In India it is the owners of property who are liable for
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the payment of municipal taxes whereas in countries like the United Kingdom, the
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occupier is liable. Generally, the property tax is levied on the basis of reasonable rent
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at which the property might be let from year to year. The reasonable rent can be actual
rent if it is found to be fair and reasonable. In the case of un-let proper-ties, the rental
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value is to be estimated on the basis of letting rates in the locality.
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6.1 FINDING REAL ESTATE VALUES:
It is the practice of knowing the market value of a property. As all properties differ
from each other in terms of location area, etc. so their value is different. Basic
amenities of the area and surrounding environment are the factors playing an integral
role in the valuation of the property. Real estate returns are generated in two ways.
First, the income return comes from tenants' rent payments. The income return is a
straightforward calculation because all you need to know is how much cash remains
after all property expenses have been paid. The second type of return is the capital
return, which is the increase or decrease in the value of the property due to changes in
market demand and/or inflation. The capital return is more difficult to calculate, and
requires the property to be valued or appraised.
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If you want to determine the value of a real estate investment, the most accurate
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method is to sell the property and see how much money you get for it.
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Appraisal method: a
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Appraisers use a variety of methods to determine value, and for income-producing
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properties the most common method is the capitalization rate approach. In its simplest
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form, a capitalization rate equals the net income from a property divided by its
purchase price. To use the capitalization rate approach, an appraiser gathers
capitalization rates from actual sales of similar properties, and based on those sales and
capitalization rates forms a judgment on the appropriate capitalization rate for the
property being valued. The appraiser then applies that capitalization rate to the subject
property's income to estimate the value. For example, if the market-derived
capitalization rate for a property is 10%, and the net income for that subject property is
$100,000 in the year after you purchase the property, then the value of the property is
$1,000,000.
-- Operating Cash Sales price Total Cash Flows
Year 1 100,000 n/a 100,000
Year 2 105,000 n/a 105,000
Year 3 110,250 n/a 110,250
Year 4 115,763 n/a 121,551
Year 5 121,551 10,00,000 1,121,551
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They also need to have experience appraising properties in your geographical area,
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because different locations have different market attributes. If your appraisal will be
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used by a third party, such as a mortgage lender, then you should be certain the lender
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will accept reports from your chosen appraiser. Last, the amount of the appraiser's fees
should be a consideration. a
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Mortgage Financing: d
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Sand amount of mortgage financing is important to the performance of
The type
the property for two reasons. First, if your property has a closed mortgage in place that
also happens to have poor terms (for example, a high interest rate or an undesirable
loan to value or amortization period), then it can affect the value of the property.
Therefore, it is important to consider the perception of the market when locking in your
financing if there is a chance you will sell the property during the mortgage term.
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(but keep in mind that you would need to pay out interest payments to the bank). This
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is known as leverage, and it has a powerful impact on property returns.
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14%
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12% 9.80%
10%
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8% 6.80%
% growth rate 5.90%
6%
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2%
0%
2003- 2004- 2005- 2006- 2007- 2008- 2009-
04 05 06 07 08 09 10
Year
At present, the real estate and construction sectors are playing a crucial role in
the overall development of India’s core infrastructure. The real estate industry’s
growth is linked to developments in the retail, hospitality and entertainment(hotels,
resorts, cinema theatres) industries, economic services (hospitals, schools) and
information technology (IT)-enabled services (like call centers) etc and vice versa.
Realty market is just not trendy among Indians, but has also gained popularity among
foreigners. Morgan Stanly – one of the world’s best banks has of late invested about
$152 million Mumbai real estate. The presented report also stated that this is the only
biggest investment in India’s booming real estate sector. This proves that India real
estate is improving in reality. Further more states that foreign investors have immense
interest investing in real estate India. Due to the demand of residential and commercial
real estate among NRI’s has pushed the price of real estate beyond actual limit.
The market was not in an initial stage at the time of 1991. The industry was more
focused in only two centre Bombay and Delhi. Those years didn’t find construction
activities on large scale as the industry is today. The residential as well as retail sector
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was not as healthy as we experiencing today. There were hardly construction of retail
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malls and complexes, also the concepts of integrated townships, high-rise complexes,
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and row hoses schemes were not introduced at this stage. People were found generally
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unaware of investment opportunities in real estate it was because of negligible return
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on their investment. Also real estate index was not indicated at Stock exchange. The
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Tier II and III cities were far away from the property concerns, very slow pace of
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development were taking around such cities. Hence, the Real estate industry couldn’t
take place at these times. The price of property was quite low as compared to today’s
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situation, it was because was the less number of dealings and transactions regarding
property.
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It has been observed since the last few years that end-user buying in the sector has
increased from 35 percent to more than 60 percent. There are many obvious reasons for
this improvement. First, the advent of the IT sector has made job in the cities a highly
common phenomenon. This has induced office workers to migrate to cities.
The table below depicts the growth of different sectors that have contributed heavily to
the real estate growth in India.
Sector CAGR (Compound Annual Growth
Rate)
Organized Retail 49.53
IT and ITES 28
Overall Housing 30
Real Estate 33
India is a growing economy and has witnessed a growth of 8.1% in the last financial
year. Therefore, the investors are eying on Indian property and willing to invest at this
right time to reap huge profits.
· The focus of Property market shifts to Tier II and Tier III cities, rather than only
concentrating on only Metro cities like Mumbai and Delhi. Smaller cities middle
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class house holds increasing more rapidly than of metro cities. So there is a tremendous
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boom in smaller cities.
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· Growth in commercial office space requirement is led by the burgeoning outsourcing
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and information technology (IT) industry and organized retail
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· There is a great demand for office and industrial space of 100 million square feet to
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accommodate an estimated 2 million new graduated passing out from various Indian
universities recently.
The following chart depicts the rate of property in the particular year, and indicates the
trend of market.
Increase in Property Rate in tier cities
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· There is a huge demand for corporate space of a large number of Fortune 500 and
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.coffices in India.
other multinational companies who are willing to set up
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· Investment of $ 320 billion requires in next five years in infrastructure. Credit to be
a and benefited from low interest rates.
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housing sector has continued to be strong
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· India is witnessing growth
tu that lead to huge demand in this space as well.
pharmaceutical, jewellery
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Home loans and other incentives:
Presently the commercial banks and other finance landing institutions are also
started playing an important role in the development and growth of the Property
Market. Easy availability and governmental incentives have boost in the reality boom.
At present the market leader in the India mortgage market is the Housing Development
Finance Corporation (HDFC), the State Bank of India (SBI), ICICI and other banks
proving home loans to the customers. At present the total worth of the India Mortgage
Market is nearly US $ 18 billion. The present home loan rate is 8.5% p.a.
Till December 31 last year, the SBI was offering teaser loans where the interest rate
was 8% for the first year, 9% for the second and third years, and a floating rate
thereafter. As on that date, the total outstanding retail home loans stood at Rs82,376
crore for the bank.
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The three major financial institutions HDFC, ICICI and Corporation bank had
provided home loans. According to CARG report, the total size of Home loan market
in India is Rs.150,000 caror as in year 2010.
Year Total Loan Disbursed (in Cr.)
1991-00 9812.03
2000-2001 12637.85
2001-2002 14744.85
2002-2003 33840.53
2005-2006 56,600
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20%
80 .
% a Residential
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Commercial
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(source: CREDAI)
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Of the total investments done in properties, about 20% investment was in Commercial
segment and about 80% of investment was in Residential segment.
→The residential housing development contributes to 80% of the real estate in India.
• Highly industrialized state, with more than 38% GDP contributed by secondary
sector.
• Creating value for investors, ranked as the best state for investment approved by
financial institutions.
• Top contributor to Indian economy, around 22% of the Indian exports contributed
by Gujarat
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• An economy on the boom and beating recession, more than 10% since 2004
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• State with highest number of MoU realization
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• Utility cost one of the least as compared to competing destinations
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• Taxes at par with other business destinations
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• Globally cost competitive labor force
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• Some Mega Projects proposed to com up at Gujarat, will boost the real estate
investments, and largely affect the market:
1) Special Investment Region (SIR, Dholera)
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2) Delhi Mumbai Industrial Corridor (DMIC)
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3) Special Economic Zones (SEZs)
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The Ministry of housing in 2006 to assess the urban housing shortage has estimated
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that at the end of the 10th Five Year Plan, the total housing shortage in the
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country was 26.53 million.
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HOUSING SHORTAGE IN INDIA
35
30 S 34
30.1
25 26.7 26
20
19.7
URBAN
15 RURAL
21.7
10 15.1 18.4 19.3 20.5
(in m illon)
5
0
2001 2005 2008 2010 2014
(Source : CRISIL Research)
Real Estate Sector in Gujarat. Trend in Property market
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Gujarat is one o f the most growth oriented state in India. And Ahmedabad
and Surat are the most happening cities in the state. The transformation of these cities
into Metros” is fast and benefiting to all. The prices o f properties in Ahmedabad and
Surat are at new high. The cities were almost unknown just before few years now they
have become most popular. Both the cities are growing in terms o f finance and
developing even as career hubs. Simultaneously Number of new, national and
multinational Companies are ready to invest in these cities as they have seen a bright
future in business opportunities. There were times when people wanted to invest in
other cities than Ahmedabad and Surat. But the scenario has been improved. Now a
day’s people have started investing in these two cities as they look at them as places of
new growth.
Gujarat is one of the most growth oriented state in India. The prices
of properties in Ahmedabad and Surat are at new high. The cities were almost
unknown just before few years, now they have become most popular. Both the cities
are growing in terms of finance and developing even as career hubs. Simultaneously
Number of new businesses, national and multinational companies is ready to invest in
these cities as they have seen a bright future in business opportunities. There were
times when people wanted to invest in other cities than Ahmedabad and Surat. But the
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scenario has been improved. Now a day's people have started investing in these two
cities as they look at them as places of new growth.
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While Ahmedabad is the historical city of Gujarat with a rich heritage, Surat
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is the clean and green city or the port city of Gujarat. Total population of larger
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Ahmedabad is approximately 5.5million people. Surat too has the population about
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4.9million. Surat is being the fastest growing city of India now textile and diamond
business have bright u
t future. Other than these two industries, lot more industries are
Sfast in these cities. So there is no doubt that demand for housing will
growing up very
increase by leaps and bounds. All working class people will need residence/apartments.
So investment in residential projects in these two cities will bring huge profit to
housing companies or the builders. Housing sector is the most preferred segment in
Surat and Ahmedabad. Well known builders and popular property developers who
were not interested in building small houses and apartments are now coming up with
all kinds of affordable and luxury homes to buyers from all class. Though industrial
sector of both the cities are quite well established, the expansion and business with a
new vision is going in full speed. As life has become fast and modern, the new
generation needs something novel. So for their recreation and entertainment new malls,
multiplexes and retail outlets are opening up daily across the cities.
Further people invested in gold and silver or in stock market. But as these markets
are as always uncertain smart people will prefer to invest in Real estate. So a common
trend among affluent Gujaratis is to invest in a property which will rise soon. In real
estate there is minimum risk of cost cutting and they are growing at rapid speed. So
many projects are up coming too that will attract higher middle class people to middle
class people. Investors from other affluent cities have also seen a great opportunity and
flocked in to these cities with their profits.
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market boom, Gujarat too is gearing up for welcoming the change. By introducing
athe Gujarat’s soil, many real estate companies
have made it an ideal place for
n and organizing profitable businesses. Currently,
world-class real estate infrastructure to
yliving
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we witness a phenomenal
complexes allS over the region. It seems the Gujarat investors are returning to real estate
business after an interval. Many of them are now eyeing fresh projects to put their
money in. The growing demand of real estate brokers tells it all. In the present day, as
the infrastructural development is at its peak, the real estate sector in Gujarat witness a
steady growth. Property developers in Gujarat offer high-end flats and bungalows to
locals as well as non-resident Indians. It is a known fact that the NRIs are one of the
major investors in Gujarat residential property and this makes the real estate
developers focus on luring them in foreign investment. Investing in real estate market
in Gujarat is the wisest option for the investors at this moment as the state witness a
huge growth in real estate development. Real estate in Gujarat is primarily divided as
residential properties and commercial properties. The real estate brokers in Gujarat
predominantly crack down on Ahmedabad real estate as it is one of the promising real
estate property markets in India. What’s more, it is a known fact that many major
industries are eyeing on real estate properties in Ahmedabad and Surat, it is wise to
invest on property at the right time. If you are looking for such opportunities, it is
always better to approach a real estate agent or a real estate broker as they are the ones
who know better about the localities and the prices of the properties. Try to find out
professional real estate agents that are into the real estate business for long time.
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As a conclusion of real estate studies in India, we can see that as far as real estate is
concerned, the bar of investment has significantly raised. India has immense scope for
building infrastructure, in addition to increase investment returns by 25% which was
just 12 to 15% past decade. The commercial real estate yield in India is larger than any
other country, thus making it one of the most popular destinations for real estate
investment.
BOOKS:
• Investment Analysis & Portfolio Management- 2nd Edition Prashana Chandra .
Tata Mcgrill Publication , New Delhi.
WEB REFERENCICES:
• http://www.investopedia.com
• http://www.indianground.com
• http://www.economywatch.com
• http://www.realestateindia.com
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• http://www.siracusaco.com/
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