Economic overview

 India and China expected to accelerate the global growth with growth
rates of 6.6 % and 7.4% respectively
 IMF estimates China’s growth will reduce compared to India, China
will grow 6.4% y-o-y, while India’s growth will accelerate to 7.8%
 India moves to top 100 in ease of doing business
Industry growth trends
• Real estate sector in India is expected to reach US$ 1 trillion by 2030. By 2025, it will
contribute 13 per cent to the country’s GDP
• Rapid urbanisation - The number of Indians living in urban areas is expected to reach
543 million by 2025. More than 70 per cent of India’s GDP will be contributed by the
urban areas by 2020.
• Realty industry is the fourth largest sector in terms of FDI inflows
Industry growth trends
 Demand for residential properties has surged  Growing requirements of space fromsectors
due to increased urbanisation and rising such as education and healthcare, e- commerce
household income. India is among the top 10 andlogistics.
price appreciating housing markets
internationally.  Warehousing space is expected to reach 247
million square feet in 2020 from 140 million
 Real estate has become a preferredasset
square feet in 2017. Investments of Rs 50,000
class for investments.
crore (US$ 7.76 billion) are expected in India’s
 About 10 million people migrate to cities warehousing between 2018-20.
every year.
 Growing demand of energy efficientand
 Growing economy driving demandfor
environment friendlyarchitecture.
commercial and retailspace.

Industry drivers
 Driven by increasing transparency and
 The government has allowed FDI of up to 100
returns, private investmentsin the sector have
per cent for townships andsettlements
surged.
development projects.
 Cross-border capital inflows to India’s real
estate sector have increased 600 per cent  Under the Housing For All scheme, 60 million
between 2012-17 to reach US$ 2.6 billion. houses are to be built whichinclude 40
million in rural areas and 20 million in urban
 In 2017, India ranked 19th out of 73 countriesin
area by 2022
attracting cross-border capital to its propertymarket.
 Private Equity and Venture Capital investmentsin the  Real Estate (Regulation and Development) Act
sector have reached US$ 4.1 billion between Jan-Nov (RERA) 2016 will make the sector more
2018. transparent.
India’s real estate growth story
The urban housing shortage in India is estimated at around 10 million units* which is
being addressed through Pradhan Mantri Awas Yojana (PMAY)
Government’s plan to build 100 smart cities would reduce the migration of people to
metro and other developed cities
Major real estate development in tier – 2 cities

Segments in Real estate sector

NHB India Housing Price Index*

135
130
Real estate 125

sector 120 128.52 128.9

115
122.08
Residential Commercial Hospitality
Retail space SEZs 116.6
space space space 110
110.2
105
100

Mar '14 Mar '15 Mar '16 Mar '17 Mar '18
Key growth drivers and trends
Key Drivers Notable Trends

Residential • Rapid urbanisation • Housing sales are expected to

• Rise in the number of nuclear families increase by 16%
• Increase in disposable income • Focus on affordable and mid-range
houses

Commercial space  Rapid growth in services sectors: IT/ITeS, BFSI and • Mumbai, NCR and Bengaluru
Telecom accounted for 60 per cent of total
 Rising demand from MNCs office space demand in India in 2017
• Co-working space across top seven
 Demand for office space in Tier-II cities
cities has increased sharply in 2018
(up to September), reaching 3.44
million square feet, compared to 1.11
million square feet for the same
period in 2017
Retail space  Booming consumerism in India.  Around 32 new malls with area of 13.5
 Organised retail sector growing 25-30 per cent annually million
square feet are expected to start
 Entry of MNC retailers.
operations in 2019
 India’s population below 30 years of age having During January-March 2018, private
exposure to global retail are expected to drive demand equity investors invested Rs 950 crore
Some infographics to ponder upon…
Demand for Commercial Space in Top 8 cities (million sqft) India’s Foreign Exchange Earnings From Tourism (US$ billion)

30 30 CAGR 10.88%
25 28 28 27 25

27.7

27.0
23

22.9
20 22 20

21.1
19.7
18.4
15

17.7
15

16.6
14.2
10

11.8

11.4
10

10.7
8.6
5
5
0

2011
2006

2007

2008

2009

2010

2012

2013

2014

2015

2016

2017

2018*
0
2013 2014 2015 2016 2017

Number of Malls inIndia Cumulative Housing Demand-Supply in Top 8 Cities (‘000 units)
2016-20
300
717
HIG
250
246 351
232
219
200 212
203
188 1,457
MIG Demand
150
647 Supply

100
1,982
LIG
50
25

0 0 500 1000 1500 2000 2500

2012 2013 2014 2015 2016 2017