Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Compiled by:
Abhinav Srivastava
Akash Sen
Atish Mukherjee
Samarth Upadhyaya
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Source: Ministry of Housing and Urban Poverty Alleviation, RBI, CRISIL, Aranca Research
Total rural housing shortage is estimated at 43.7 million during the period
2012-2017.
Total demand projection for top cities in India to cross 710000 units.
Allocation of USD 2.8 billion for rural housing for FY14 budget.
Rise in the number of nuclear families further fuels the demand for residential real
estate.
Easy availability of finance is also a factor contributing to increased demand for real
estate.
According to property consultant Cushman & Wakefield, Hospitality sector will see a
rise of over 65 per cent in total hotel inventory by 2017 and around 52,000 new
hotel rooms are expected to come up.
Related and Support Industry- Strong:
The Real Estate sector exudes a large influence over a number of ancillaries including
Financial Services, Steel, Cement, Glass, Paints, Furniture, etc. Real Estate sector has been
the major driving force behind the growth of many of these industries.
Financial Services As per the IBEF Financial Services Sector Report
o The size of banking assets in India reached US$ 1.8 trillion in FY 13 and is
projected to touch US$ 28.5 trillion by FY 25.
o The financial services sector in India is dominated by commercial banks which
have more than 60 per cent share of the total assets.
o As per the Aranca Research, a constant growth can be witnessed in credit to
housing finances. The constant growth has consistently provided driving
impetus to the banking and financial institutions.
o The demand for the housing credit in the low and medium income group
exceeds the supply by three to four times, thus, fuelling the banking sector to
a great extent.
Cement As per the IBEF Cement Sector Report
o India is among the best cement markets in Asia.
o The production of cement has increased at a compound annual growth rate
(CAGR) of 9.7 per cent to reach 272 million tonnes (MT) during FY 0613.
o As per the Aranca Research, 64% of cement demand was from the Housing
Sector, followed by Infrastructure (17%), Commercial & Institutional (13%),
and Industrial (6%).
Investee
Blackstone
160
Godrej Properties
140.8
Government of Singapore
Godrej Properties
Investment Corporation
Morgan Stanley Real Estate
Supertech
Investment
Baring Private Equity
Bengaluru based RMZ Corp
Partners India
Sheth Developers Private
Morgan Stanley
Limited
98.2
91.4
91.4
84.8
strategy of these players is to build at an economical cost and undertake its Belowthe-line (BTL) marketing heavily.
The rivalry and competition between the firms compels them to keep costs under
limit and cut down on their offerings. As the bigger players cannot match the prices,
their presence is limited in the space.
DLF, Unitech, Jaypee Infratech Ltd. and Godrej Properties are the few top players in
terms of value.
As the number of projects is increasing with the growing economy, companies have
a positive book value keeping the competition and rivalry under limits.
Government:
Stimulation
o Decision to develop 100 smart cities.
The Government has a vision of developing one hundred Smart Cities, as
satellite towns of larger cities and to modernize the existing mid-size cities.
Rs. 7060 crore has been allotted by the government in the Budget 2014.
o Easing the FDI rules to facilitate investments by foreign players.
FDI policy requirements regarding built up area and minimum capital norms
has been reduced from 50,000 square meters to 20,000 square meters and
USD 10 million to USD 5 million respectively, with a three year post
completion lock-in. Projects with minimum 30% of its total project cost for
low-cost affordable housing to be exempt from built-up area and minimum
capital under FDI policy, however, the three year lock-in shall apply.
o Government plans to build houses under various schemes through National
Housing Bank (NHB). A sum of Rs 4,000 crores for the National Housing Bank
has been set aside by the government to provide cheaper credit facility under
the affordable housing scheme for the urban poor/EWS/LIG segment.
o Incentives for real estate investment trusts (REITS). Enabling the framework
for REIT/ InvITs, including clarity on taxation, would enable flow of
investment in real estate and Infrastructure sectors. There will be a major
boost to investor sentiment.
o The ministry of Housing and Urban Poverty Alleviation has plans of
introducing a single-window system for clearance of all real estate projects
across the country. The system can bring down the average approval time
from the current 196 days to 45-60 days.
Bureaucracy and Laws
o
Investment
Investment Indian Contract Act, 1872
Transfer of Property Act, 1882
o Competition
Government through Competition Commission of India (CCI) is active
in scrutinising the trade practices followed by the companies.
Recently, it has asked 20 leading builders, including Tata Housing,
Unitech, Ansal Properties to respond to findings that they engaged in
unfair trade practices like one-sided contracts with inadequate
disclosures.
o
Operations
Registration Act, 1908
Special Relief Act, 1963
Urban Land (Ceiling and Regulation) Act (ULCRA), 1976.
The Indian Evidence Act, 1872
Rent Control Acts
The Town & Country Planning Acts
Land Acquisition, Rehabilitation and Resettlement Act, 2013
Market