REAL ESTATE

Presented By:
Gunjan Masand
Ritul Jain
Saurab Vats
Shanky Singhal
Shubhomita Sengupta
Shweta Datta

INTRODUCTION

INTRODUCTION

The strong fundamentals of the Indian economy are having a

favorable impact on all asset classes of Indian real estate viz.
housing, commercial office space and retail and hospitality.
In recent years, the growth has spread out to tier-II and III
cities as well.
High growth in services as well as manufacturing sector has
resulted in high demand for commercial and industrial real
estate.
Further the economic growth has trickled down to the large
Indian middle class increasing affordability and affluence.
Improving living standards are driving the demand for better
quality housing and urban infrastructure.

Drivers for Growth of

Real Estate
&
Construction

Overview of India Infrastructure

Special Economic Zones

Promotion of
Generation
ofinvestments
additional economic
from domestic
activities.
and foreign sources.
OBJECTIVES

Govt. Initiatives and Policy

Major Players in Real Estate

DLF Group

DLF Group

DLF Group
Founded in 1946
DLF Group is one of the biggest real estate giants
Built many high-quality buildings across the country,
specifically in Gurgaon
Tied up with Hilton Group to build whopping 100 hotels in
India over the next few years.
In current expansion plans, DLF has over 425 million sq. ft. of
development across its businesses, including developed, ongoing and planned projects.
Spread over 32 cities, mostly in metros and key urban areas
across India

ANSALS

Ansals

Founded by Lala Chiranji Lal Ansal

By far most dominant activity of Ansals has been Real Estate
Promotion & Development
company has several landmark high-rise commercial building
like Statesman House, Ambadeep, Antriksh Bhawan, Tolstoy
House, Indra Prakash, Navrang House and Ansal Bhawan
Ansals have also completed several residential buildings like
Gauri Sadan, Upasana at Hailey Road & Dhawan Deep at
Jantar Mantar road, all in the heart of New Delhi at Connaught
Place.

There is the most prestigious Ansal Plaza Shopping Mall

associated with its work

Also it has made elite townships, Sushant Lok and Palam

Vihar in Gurgaon and several other places all over the country.

Parsavnath Developers

It was incorporated on July 24, 1990 under the Companies

Act, 1956 as Parsvnath Developers Limited.

With more than two decades of experience in its repertoire,

the group has already stamped its presence already in
seventeen states and going Pan India.

It has made various developments in areas like GURGAON,

Noida, South Delhi.

Unitech Group
Plans to invest US$ 720 million in building hotels in the
country
Its partner for this venture is Marriott International.
Carved a niche for itself in India with its sprawling properties
and projects in Bangalore, Gurgaon, Noida, Greater Noida and
Kolkata
Unitech Group took over projects in International areas as well.
Actively involved in construction projects of power plants,
expressways, highways, transmission lines, classrooms,
amusement parks.

Radisson Hotel, New Delhi has won accolades for its

wonderful infrastructure, astounding interiors, ideal location
and extra ordinary facilities for the distinguished customers.

Rohini Amusement Park is also a creation of Unitech Group.

The commercial complexes like Global Business Park,

Signature Towers, Unitech Business Park and Unitech Trade
Center and the launch of Millennium Plaza & Infocenter in
Gurgaon have made Unitech Builder earn a good reputation in
the industry.

Financials Of DLF
DLF is the market leader in this sector with net profit
of 1547 cr.
It was way lower than its last year profit by more
than 1000 cr.
It was well supported by the timely launch of IPL.
The share of this co. touched the all time high of
1227 in dec. 2007 which was just 6 months after its
issue and now trading at 337.

Financials Of Ansals API

Their profit declined by 81.24% in the last financial
year over the last year.
This is one of the badly hit company by the economic
slowdown.
569 is the all time high of this company in 2006 and
now trading at just 10% of its all time high.

SUBPRIME CRISIS

Investment in Real Estate by PE Firms

DEVELOPMENT OF REAL
ESTATE IN INDIA
IT

Infrastructure Temples of Modern India

Townships
Programming
Green

Houses

Buildings

BARRIERS IN GROWTH OF REAL

ESTATE

FALL OF SENSEX AND REAL

ESTATE STOCKS
Rising Prices

DLF

IMPACT OF RECESSION ON
REAL ESTATE

KEY ISSUES
Incompletion of previous projects

MEASURES TAKEN BY DLF

MEASURES TAKEN BY UNITECH

QIP issuance to reduce debt

SHIFT IN STRATEGY
Key Focus Areas

Before

Now

1. Residential Segment

Primarily target
luxury/upper middle
income housing segment

More focus on mid and

affordable housing
segment.

2. Assets and Land bank

Buy predominantly
agricultural land and build
land bank for projects
across all segments.

Sell assets selectively and

acquire land only for
mid/low income housing
projects.

3. Debt

Short Term maturities.

Restructured to longer
maturities.

Higher proportion of
expensive unsecured
loans.

Cheaper Collateralized
loans.

Increasing debt with more

projects.

Reduced leverage.

IMPACT OF BUDGET
Overall Impact considered to be marginally positive.
Infrastructure investment to be raised over 9% of
GDP.
Funding pressure on construction companies to be
eased by PPP.
PPP infrastructure projects to be refinanced upto 60%
through IIFCL.
Rs 39.7 billion allocated for rural housing schemes.
Focus on providing housing to people of economic
weaker section & lower income group.

FUTURE PREDICTIONS
Close to $7 billion to $8 billion of venture capital
expected to flow into Indian real estate market.
A significant increase in project execution through
Public- Private-Partnerships.
More demand for office and industrial space.
Current levels of investments in infrastructure are not
sufficient to bridge the gap between demand and
supply.

THANK YOU