destination india real estate

8/2/2019 Destination India Real Estate

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DESTINATION INDIA


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India is a huge country

with multi religion,

culture, language and

a world market for

everything.


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International Scenario Urban population of developing

countries will double, from just

under 2 billion in 2000 to nearly

4 billion by 2030

Urban population of developed

countries is projected to

increase from 900 million in

2000 to 1 billion in 2030. Source : UN Habitat


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- Every year urban areasgain approximately 67million people.

- Next 30 years virtually allpopulation growth willtake place in urban areasof developing countries

- By 2030 about 5 billionpeople are expected tolive in urban areas, nearly60% of the projected

global population of 8.3billion.


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Indian Real Estate Scenario

Thrust area for development will

be in developing countries like

India

Asias rural population isprojected to decrease from an

estimated 2,297 million in 2000

to 2,271 million in 2030 Source : UN Habitat Report


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Growing Demand

It means growth rate for

urban population in

developed countries is10%

And for Developing

countries it stand for

100%

For a family of 4,

developed countries

needs 25 million houses For developing countries

it is 500 million houses

needed


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Indian Real Estate Scenario

Population Statistics (million)

1981 1991 2001

TOTAL 683.33 846.30 1027.00

RURAL 523.87 628.70 742.00

URBAN 159.46 217.60 285.00

Source: Census 2001


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Robust Growth

Housing and real estatedevelopment is expectedto generate over 4 millionnew jobs by 2015, withdemand for houses likely

to rise to 80 million forlower middle and lowincome groups. This wouldinvolve an estimated totalinvestment of USD 670

billion, or about USD 34billion to USD 45 billionper annum : SourceASSOCHEM

The estimates alsoreveal that the annualgrowth rate of Indianeconomy by 2015 willconveniently touch a

double digit level ofover 12% in which thehousing and realestate will havepotential to grow at

14% level per annumto double itscontribution to GDPfrom current level ofless than 1%.


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Real Estate Targets

The Tenth Five Year Plan estimatedthe urban housing shortage at 8.89

million dwelling units in 2002.

Total number of houses required

cumulatively during the Tenth Plan

period is estimated at 22.44 million

dwelling units


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Real Estate Funds Requirementduring 5 Year Plans

(Amount in Rs. million)

Five Year Plan Public Private Total

Investment Investment Investment

1st (1951-56) 2.50 9.00 11.50

2nd (1956-61) 3.00 10.00 13.00

3rd (1961-66) 4.25 11.25 15.504th (1969-74) 6.25 21.75 28.00

5th (1974-78) 7.96 36.40 44.36

6th (1980-85) 14.91 180.00 194.91

7th (1985-90) 24.58 290.00 314.58

8th (1992-97) 315.00 660.00 975.00

9th (1997-2002) 520.00 990.00 1510.00

10th (2002-07)* 4150.00 3113.00 7263.00 estimated figures as per the Plan Document Source Planning Commission, Govt. India


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MUMBAI REAL ESTATE INDUSTRY SIZEReal Estate industry in

Greater Mumbai

The Supply = Rs. 328.34 millions

Residential

Rs.169.78 millionsCommercial

Rs. 86.62 millions

51.71% 26.38% 21.91%

71.9533.3838.5686.6229.3857.24169.7863.69106.09TOTAL

43.7822.4821.3070.1324.6345.5181.3629.5951.77Western Suburb

10.463.716.7610.753.906.8547.0917.9229.18Island City

17.717.2010.515.740.864.8941.3316.1825.15Central Suburb

TotalUnsoldSoldTotalUnsoldSoldTotalUnsoldSold

RetailCommercialResidentialSuburb

RetailRs. 71.95 millions

June 2005


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ANNUAL DEMAND & SUPPLY SIZE

Rs. 191.43

millions

Rs. 153.74

millions

Annual

Demand

Annual

Supply

Greater Mumbai

Rs. 21.73

millions

Rs. 17.20

millions

Annual

Demand

Annual

Supply

Thane City

Annual DemandAnnual Supply

Rs. 244.36 millionsRs. 195.91 millions

Annual Demand & Supply of Real Estate industry in

Greater Mumbai, Navi Mumbai, Thane City & Western Suburb

(Beyond Borivali)

Rs. 24.80

millions

Rs. 16.50

millions

Annual

Demand

Annual

Supply

Navi Mumbai

Size of theIndustry

Rs. 64.0

millions

Rs. 84.7

millions

Annual

Demand

Annual

Supply

Western Suburb (BeyondBorivali)


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ANNUAL DEMAND & SUPPLY SIZE

Rs. 22.76

millions

Rs. 25.05

millions


Commercial

Rs. 25.73

millions

Rs. 35.46

millions


Retail


Rs.191.43 millionsRs. 153.74 millions

Annual Demand & Supply of Real Estate industry in Greater

Mumbai

Rs. 142.94

millions

Rs. 93.23

millions


Residential

Size of theIndustry

-9.7225.7335.46-23.022.7625.0549.71142.9493.23TOTAL

-48.218.2823.1022.818.8616.5817.7367.1549.42Western Suburb

-17.22.153.87-27.615.74.337.8529.3821.53Island City

-3.185.308.48-18.223.34.1524.1346.4222.28Central Suburb

Over /Under

Supply

AnnualDemand

AnnualSupply

Over /Under

Supply

AnnualDemand

AnnualSupply

UnderSupply

AnnualDemand

AnnualSupply

RetailCommercialResidential

Suburb


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SUPPLY SIZE IN SQFTS

Real Estate industry in

(Greater Mumbai + Navi Mumbai + Thane City + Western Suburb (Beyond Borivali))

The Supply = 11.68 mn Sqfts

Navi Mumbai

1.49 mn Sqfts

Greater Mumbai

8.16 mn Sqfts

Thane City

1.29 mn Sqfts

69.89% 11.05% 6.29%

Western Suburb(Beyond Borivali)

0.73 mn Sqfts

12.79%


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SUPPLY SIZE IN SQFTS

Real Estate industry in GreaterMumbai

8.16 mn Sqft

Residential

4.32 mn Sqft

Commercial

2.62 mn Sqft

Retail

1.22 mn Sqft

52.94% 32.10% 14.95%

1.220.740.482.62100162432171261TOTAL

0.870.620.252.050.861.192300.901.40Western Suburb

0.110.020.090.240.090.15690.270.42Island City

0.240.100.140.330.050.281330.540.79Central Suburb

TotalU/cSoldTotalU/cSoldTotalU/cSold

RetailCommercialResidentialSuburb


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Red Carpet for

Real EstateFunds

Mutual Fund Association Strongly recommended SEBI in favour of such funds

Demand for housing is on high notes

Greater Transparency in Real Estate Deals Land Records computerised

Rationalization of Stamp Duty mooted


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Real Estate Venture Funds

Financing real estate

developers

Construction Finance

Equity participation in business

For acquiring FSI and Land,

future projects


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The retail industry to-day

stands atRs. 9,30,000 million of

which 97 percent is in the

unorganised sectorincluding export

Source : Ministry of Finance


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Now the organised retailing isgrowing at 30 percent and is

expected to grow to Rs.1,10,000

million by 2010.


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Quality realestate in the

form of Malls,

Multiplexes and

commercial

premises is nowavailable.


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Within two years,more than 300 Mallswith 40 million sq.ft.

of space would comeup in all major metrosand semi metros in

India.


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India has moved up from the sixth to the first

position in the Global Retail Index.Source : WTO


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India is becoming mostattractive market in comparisonwith China and Russia etc and

has jumped from 16th

to the 3rd

position in the Foreign DirectInvestment Index.


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Why India

Young Generation having good purchasingpower

Enhanced Income level

Higher Education available within the countryHousing Finance growth rate at 73% p.a.

Huge demand and limited supply

Investor friendly government policies


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THANK YOU

Sanjay Chaturvedi

destination india real estate

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