Real Estates of India

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Before

After..

Real estate in India was

unorganized.

Lack of uniformity in local

laws and their application. Non availability of bank

financing, high interest

rates, and transfer taxes .

Lack of transparency intransaction values.

Greater organization andtransparency.

Greater availability offinancing for real estatedevelopers.

Regulatory changes permittingforeign investment.

Hightened consumerexpectations influenced byhigher disposable incomes.

Increased globalization.


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key growth driver of the countrys economy.

One of the highest FDI-attracting sectors in India.

Growth in the services sector

DLF, Unitech, AnsalProperties, K. Raheja Corporation and

Parsvnath Developers

Emaar, Ascendas, Keppel Land, Tishman Speyer and Nakheel

Group.


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Real Estate Sector


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Robust and sustained macroeconomic growth

Upsurge in industrial and business activity,especially in new economy sectors.

Favorable demographic parameters. Significant rise in consumerism.

Rapid urbanization.

Availability of a range of financing options at

affordable interest rates.


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Impact of demand pull factors: Increasing occupier base.

Significant rise in demand for office/industrialspace.

Demand for new avenues for entertainment, leisureand shopping.

Creation of demand for new housing.


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Policy and regulatory reforms

Positive outlook of global investors.

Fiscal incentives to developers.

Simplification of urban development guidelines.

Infrastructure support and development initiatives from the

GoI.


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Impact of supply push factors:

Entry of several domestic and foreign players; increasing

competition and consumer affordability.

Easy access to project-financing options.

Increased developers risk appetite and large-scale

development.

Improved quality of real estate assets.

Development of new urban areas and effective utilization of

prime land parcels in large cities.


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High growth projections

Multiple growth drivers

Rapid evolution of the sector

Increased foreign investments

Well defined regulatory framework

Demand for affordable housing


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Modification in the rent control act to provide greater

protection to home owners wishing to rent out their properties.

Rationalization of property taxes in a number of states.

The proposed computerization of land records.


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Budget analysis:

Policy impact

Direct tax impact

Indirect tax impact


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The confederation of real estate developers association of

India(CREDIA)

Builders Association of India


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The trends have benefited from substantial recent

growth in Indian economy, which has stimulated

demand for land and developed real estate across thereal estate industry.


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Residentialreal estate

development

Commercialreal estate

development

Retail realestate

development


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Tourism andHospitality

industry

Specialeconomic

zones

Infra

structuredevelopment

project


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By rising disposable incomes

Rapidly growth middle class

Low interest rates

Fiscal incentives

Hightened customer expectations


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By demographic factors

By increasing disposable incomes

Changes in shopping habits Entry of international retailers

Growing no. of retail malls


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The hotel industry in India has grown as a result of Growingeconomy, increased business travel and tourism

The hospitality segment has witnessed robust demand growth,primarily due to strong growth in tourism, including both

business and leisure travel.

India is becoming increasingly popular as a medical tourismdestination.

Hospitality players are diversifying into budget hotels andservice apartments.


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Minimum 10 hectares to be developed forserviced

housing plots

For construction-development projects,minimum

built-up area of 50,000 square metersprescribed

In case of a combination project, any one of the

above two conditions should suffice At least 50 per cent of project to be developed

within

5 years from date of statutory clearances


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Minimum capitalization of US$ 10 million for

wholly owned subsidiaries & US$ five million forjoint ventures with Indian partners

Infusion of funds within six months ofcommencement of business

Original investment cannot be repatriatedbefore a period of three years from completion ofminimum capitalization.

Investor may be permitted to exit earlier withprior government approval.


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Investor not permitted to sell undeveloped plots

Project to conform to norms and standards laid

down by respective State authorities Investor responsible for obtaining all necessary

approvals as prescribed under applicable rules/by-Iaws/regulations of the State

Concerned Authority to monitor compliance ofabove conditions by developer


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Several global investors and developers keen on

investing in India.

FDI inflows estimated to be US$ 19.5 billion in

2007 and, US$ 7.5 billion in the first fivemonths

of 2008.

FDI in the sector expected to touch US$ 25 to

28 billion by 2011


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0 5 10 15

2009-2010

2008-2009

2007-2008

2006-2007

real estateother sectors

Real estate share in FDI


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Majority of the direct investment is from West

Asia with overall commitment of US$ 9.7 billion

from Dubai based developers.

Further, investor from USA and Europe have

shown keen interest with the launch of several REfunds.


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59%25%

10%

2%

4%

Dubai

Indonesia

Singapore

Malaysia

others

Major countries investing in

Indian Real Estate


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Rationalization of the regulations in governance

affecting real estate

For example, improved land records,

rationalizingstamp duty across states, simplifying urban

development guidelines etc.

Focus from both public and private sector Different models for foreign investment being

evaluated.


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SEZ Act, 2006 provides major Tax benefits,

Tax relief and Single window clearance and

approval

Focus on urban infrastructure

Urban Reform schemes

* JNNURM

* City Challenge Fund

* Mega Cities Fund


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NHB to introduce reverse mortgage

Senior citizens to receive monthly income against

their property

They do no have to repay the loan

Regulations for mortgage guarantee companies

Guaranteeing mortgages on the behalf of the banksand finance companies.


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Reduction in tax burden due to increase inthreshold

limits on individual tax slabs

No change in corporate income tax rates andsurcharge.

100 per cent tax holiday for five years for hotelsand

convention centres in World Heritage sites ifthey

start functioning before March 31, 2013.

100 per cent tax holiday for five years anywhere

in


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General rate of excise duty reduced from 16 percent

to 14 per cent.

Excise duty revised on bulk cement from US$ 10per

tonne to 14 per cent of assessable value or US$9.8

per tonne, whichever is higher. No change in service tax rate

Seven new taxable services included in theservice tax

net


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APPRAISALBROKERAGEDEVELOPMENTPROPERTY MANAGEMENTREAL ESTATE MARKETINGRELOCATION SERVICES


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Owner/user

OwnerRenter

Developer

Renovators

Facilators


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DEMAND

SUPPLY ANALYSISPROPERTY


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Foreign Funds.

Real Estate Exposure Of Banks.


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Geographic de-concentration of

real estate activity from large metros.

Green buildings are gaining popularity.

Affordable housing is still the buzzword.

Recovery in demand for luxury projects.


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Growth not only in the metros, Also in thesurrounding regions. The suburban areas developing at a faster

pace .

NRIs and foreign investors eyeing Indian

property as lucrative Worlds renowned banks like Morgan

Stanley, etc. now investing in the IndianReal Estate market. Tremendously hiked prices and large

returns assured.


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Steady expansion and development in the ITsector of India.

Adoption of Foreign Direct Investment (FDI)policy.

Easy access to bank loans.

Growth in Indian economy.


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Nagar Road - the preferred location. Economically vibrant areas of the city on the

Eastside.

Development taking place and the name is gaining

national and even international prominence. Nagar Road is experiencing the full impetus of

development in all important respects.

Growing IT/ITES/BPO sectors

along with the rapidimprovement of physical and

social infrastructure in city


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The Metro countdown is on.

Next couple of years - the metro network is scheduled to becomplete.

The Metro promises to be a game changer for the citysproperty sector.

The Outer Ring Road (ORR) and the six-laning of Bellary Road The prospects from the Metro are much more.

While these roads brought connectivity

to specific localities in the

vicinity, the Metro networks

the entire city.


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Suffer in second half of the currentfinancial year.

Drop in home sales and a slowdown in

office leasing transactions. Mumbai and NCR home state declinedue to high home loan rates and

property prices.


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Attaining a twofold increase. Market experts predict that the coming years

will witness a boon in the Indian Real EstateScenario

Property business will turn out to be a cashprocessing machine.

Anyone investing in

property is sure to reaplarge profits.


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ZZ

Conglomerate of 35 companies

with Ansal API, AHCL, ABL

All three engages in real estate

development activity

Employing 5000 People nation

wide

All three companies have acquire

the ISO 9001-2000 certificate


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Intend to shift its focus to value

added development or constructed

property

Expansion into hospitality

Focus on premium location in TIER

211 cities of north India


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Established in 1972 bygroup of EngineersInitially started

consultancy firm for soiland foundationengineeringEstablished Real EstateBusiness in Gurgaon in1986.

unitech


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COMPANY PROFILE

Construction

Real estate developmentConsultancy in relatedareas.HotelsInformation technology

Electrical transmission

theExecutive

Chairman of

Unitech

, sonof Mr. RameshChandra, isManaging Directorof Unitech.

, theother son of Mr.Ramesh Chandra, isalso ManagingDirector of Unitech


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FUTURE PROSPECTS

Achieve high growth byestablishing a pan Indiapresence

Focus on majoreconomical centersFocus on profitableprojects that maximizereturns

Undertake large mixed-use projects likeintegrated township in thesuburbs of main cities.


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PDL is one of the leading realestate companies in India

Diverse business portfolio ofcommercial complexes,shopping mall, integrated

township and group housing Strengthening its position in

core operations if real estate First real estate company to

achieve a NAREDCO-ICRA DR 2-rating


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Plans to have at least 17 hotelsacross 13 cities operational by2011

Expanding footprints in newerlocations across India

Participation in re-developmentof land

Exploring possibilities of powergeneration & distribution.

Exploring infrastructural projects


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PDL has a pan-India presenceand an experience of more than17 year in offering state of theart construction


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Began life as a civil constructionand contracting company

Executed more than 120 Industries,Institutional, Commercials,Residential & Hospitals.

Entered

business in 2001

Rohtas Goel, CMD, Omaxe Ltd


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Planning to invest Rs. 20 billion in itshotel project in 11 cities across India.

Also planning a Rs 20-30 billionin Punjab.

Also planning to invest 2 billion inDUBAI Real Estate projects

They have exhaustive plans toupgrade living environs of smallercities in North India in next 5 years.


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Pioneered the concept of trulyinternational quality in constructionindustry.

ensured consistent international quality tocostumers resulting the industrybenchmark for international quality

Built residential, contractual andcommercial projects

Accepted as the industry benchmark forworld class building techniques and qualitystandards

Enjoys an ever widening reputation forreliability, dependability and honesty


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They anticipate building a presences invaried industries including hotels andresorts. Hypermarkets, Home stores and

building materials.


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Its a joint venture b/w Emmar properties PJSC of Dubai and MGF Development Ltd.

Development in residential, commercial, retail and hospitality sectors

Also identified healthcare, education and infrastructure as business line

Aspects of real estate development , such as land identification and acquisition, projects planning, designing, marketing and execution


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since 1917


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Cushman & Wakefield

India offers a full range

of real estate servicescombining local

expertise and

experience with

technology and

standards of service that

are well established and

consistent across all

Cushman & Wakefield's

offices worldwide. Our

main service offerings

are:

since 1917


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There is a shortage of 12 million housing units inurban areas There is a scope for 400 township projects over

the next five years spread across 30 to 35 cities,each having a population of 0.5 million

Total project value dedicated to low and middleincome housing in the next seven years isestimated at USD 40 billion

Instrumental such as mortgage-backedsecurity(MBS)

Commercial and collateralized debtobligations(CDO) are being use to make capitalwork more efficiently


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Real Estates of India

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