Presented by:

HARKESH BANSAL(5)PANKAJ JAIN (13)ANUPAM KASUHIK (16)NIMISH SHINGHATWADIA (23)BIKRAM SNEHI (24)

REAL ESTATE

• Size of Indian Real Estate is currently USD 16 billion.• Industry estimates indicate that the sector will

– Grow at CAGR of 30%– To reach USD 50 billion by 2010

• Demand for quality real estate in India is seeing unprecedented growth-demand supply gap exists across all segments of realty.

…Tremendous opportunity for real estate development across India.

Trends in Real Estate• Growth of India's middle class creating demand for housing.• Strong demographic impetus: India has the second largest population in

the world and the growth rate of population is still rapid.• High growth in service sector (IT/ITES) leading to demand for commercial

space.• Rising FDI levels has increased commercial space requirements by foreign

firms.• Expansion of organized retail sector.• Growth in retain trade and tourism industry due to growth in Organised

retain and hotel industry• Development spreading to Tier II and Tier III cities.• Easy availability of finance. • Alternative/Innovative financing options

DEMAND FORECASTING FOR REAL ESTATE SECTOR

Y = a + B1 I + B2P + B3R + B4GREGRESSION LINE

SOURCES : ICICI, E&Y, DEUTSHE BANK, NHB, FICCI………....

Y = 1407.8 + 45.9(I) + 0.1 (P) + (-)17.3 (R) + (-)1.26 (G)

FY Demand in mn sq ft Income in lacs Price Per sqft Int_rate GDP at FC Estimated Demand

1 1382 2.25 1200 13.25 4.4 1383.45

2 1423 2.5 1300 12 5.8 1423.64

3 1466 2.75 1400 11 3.8 1463.80

4 1510 3.25 1500 10 8.5 1506.99

5 1555 3.75 1800 10 7.5 1557.89

6 1602 4.3 2250 11 9 1604.02

7 1650 5.15 2900 14 9.4 1648.56

8   5.65 3300 12.5 9 1733.51

9   6.15 3600 12.5 9 1783.15

10   6.75 4000 12.5 9 1846.28

Demand Forecasting

1000

1200

1400

1600

1800

2000

1 2 3 4 5 6 7 8 9 10

Financial Year

Dem

and

in S

q Ft Fin_Year

Estimated Demand

Actual Demand

D

L

F

• The largest real estate development company in India

• In existence since 1946

• Completed 224mn sq ft of development

• Focus area – NCR (Delhi and Gurgaon)

• Responsible for developing the Satellite town ship in Gurgaon

• Current Land Base of 10,255 acres of land bank

DLF- Financials

Particulars FY 05 FY 06 FY 07

Income from Operations in Cr Rs. 608 1154 2615

PAT in Rs. Cr. 88 193 1944

Net Profit Margins % 14.5 16.7 74.2

ROE % 11.8 22.7 78.7

ROCE % 8.9 15.5 30

EPS % 0.6 1.3 12.7

*Source IndiaInfoline

DLF BUSINESS MIX

• Brand Name and Reputation• Extensive Land Reserves• Scale of Operations• Strategic Locations• Experienced and Dedicated

Management

• Regional concentration • Dependency on DAL

• Large demand-supply gap in affordable residential accommodation

• Availability of loans at low interest rates, tax incentives and a growing middle class with higher savings

• Housing• Increasing demand for commercial

space • Office space for IT/ITeS

• Political risks.• Macroeconomic Factors • Execution risk

T H A N K Y O U