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Marco-economic Overview
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The performance of the country has been consistent and steady
over the past three years with an average annual growth rate of 8%. The
growth trend is being led by positive movements across sectors in
agriculture, manufacturing and services.
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The proportion of manufacturing in the GDP has remained stable
at around 25%, however, the growth rate of manufacturing has
increased over years, from 2.7% in 2001 to 9.0% in 2006 against the
growth rate of 2.3 % and 9.8% in agriculture and services respectively.
Manufacturing Industries like textiles, automobiles, cement, steel,
petrochemicals,
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REAL ESTATE SCENARIO IN INDIA
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The last few years have seen Indian market mature through
regulatory reforms (rationalization of stamp duties, reform of urban land
ceilings), improving products in terms of quality and technology,
changing tenant profile (MNCs, and respect for tenancy laws), and
improving management and maintenance models (enhanced product
life-cycles and sustained project / real estate yields). Although the initial
real estate boom was concentrated in places like Bangalore and the
National Capital Region of Delhi (including Gurgaon), more recently the
geographical spread has widened. There has been a significant shift in
real estate market from metros to its suburbs and to tier II and tier III
cities. Lease rentals and occupancies have been picking up steadily and
there is an increasing demand for quality infrastructure across various
segments of the real estate sector.
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Commercial Real Estate
The demand for new office space in India has grown from an
estimated 3.9 million sq. ft in 1998 to over 16 million sq. ft in 2004-05.
70% of the demand for office space in India is driven by over 7,000
Indian IT and ITES firms and 15% by financial service providers and the
pharmaceutical sector. Cumulative demand for office space in India over
the next two years (2006-08) is estimated to be in excess of 45 million
sq. ft. The Indian IT-ITES Industry, estimated at USD 36.3 billion in 2006
has grown at a CAGR of 36% over the last decade and by 2008, is
expected to account for over 7% of India’s GDP and 30% of foreign
exchange inflows. In 2005 alone, IT/ITES sector absorbed a total of
approx 30 million sq. ft and is estimated to generate a demand of 150
million sq. ft. of space across major cities by 2010. South Indian cities
like Bangalore, Chennai and Hyderabad along with NCR (National
Capital Region) continue to attract the major share of IT/ITES and
business investment. However, secondary cities, like Pune, Chandigarh,
Indore, Kochi and Kolkata are now emerging as the new preferred
destinations for these companies due to their cost and infrastructure
advantages.
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Residential Real Estate
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Retail Real Estate
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Hospitality Real Estate
This category also accounts for the major proportion of demand for
five star or five star deluxe hotels. However, against the total current
supply of 96,000 rooms, five star category accounts for just a quarter of
the supply. With the expected growth in demand for rooms at 18%,
another 65,000 – 80,000 hotel rooms will be needed till 2010. This
demand – supply gap is expected to result in high level of activity in
construction of hotels. The established brands in this sector such as
Asian Hotels, Indian Hotels, ITC, Le Meridian etc are in expansion mode
with many new players such as Accor Group, Marriot, Choice, IHG
Group keen to establish their footprint.
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Special Economic Zones
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FDI in Real Estate
With the opening of the sector for 100% FDI under automatic route, the
real estate sector is estimated to capture about 18-20% of the total FDI
coming to India in 2005-06. The FDI in Real
this initiative can also be witnessed in important sectors like the cement
and construction industries, where the key players are expanding
capacity to meet the soaring demand.
With the relaxation of the FDI limit, the country saw an influx of global
real estate developers like Dubai-based Emaar Properties (the largest
listed real estate developer in the world) – which enetered
The real estate sector is developing rapidly in India. The demand side
has robust and sustainable macro drivers across all segments.
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Residential:
Commercial:
Retail:
Hospitality:
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Structure Of Real Estate
Change in legislation:
In many states, strict laws like the Urban Land Ceiling Act (which
defines ceiling of land holdings in urban areas) have been repealed or
modified.
Consumer preferences:
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MUMBAI REAL ESTATE
Mumbai is no way behind when it comes to a talk on property. The
Mumbai real estate is in its growth orbit and attracts investors from major
multinationals in the recent times. Such is the potential of the city's
infrastructure that it is known to be spearheading most cities as far as
property market is concerned. With Mumbai serving as the entertainment
city, even the organized retail sector here is fast flourishing.
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The property prices as well as the increase in rental values in
Mumbai owe much of its credit to the large scale investments in the
commercial sector. Mumbai has always been the hot favorite for most of
the corporate sector to have their headquarters in the city. And with
increasing investments by MNCs in the IT, ITES and the BPO sector,
there has been a growing demand for office space; which have
consequently created an imbalance in demand and supply for residential
properties. The rental values in Mumbai have also in high corresponding
to that in other metros.
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Navi Mumbai- Emerging Commercial Hub
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“When they look at India as a business entity, Mumbai takes prime
position. When they start looking out for space, Navi Mumbai, which
forms the third level of real estate pricing, is attractive for MNCs looking
to set up shop in the Mumbai region,” he explains. At the Norwegian
consulate in Mumbai, George Mathew, honorary consul general,
concurs, “If you look at real estate pricing trends in the MMR, Navi
Mumbai fits the bill on many counts. However, the clincher is the price
efficiency and developed infrastructure that Navi Mumbai provides,” he
concludes.
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Appreciations
The hike in demand as well as supply and appreciation in capital
values are attracting good attention from overseas investors. The
Mumbai real estate has become a reflective of the high growth in Indian
property market. There has been an increase in real estate value across
micro markets in Mumbai as well.
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NRI Real Estate trends
Major property developers in Mumbai, underpinned by the
vastness, scope, success and scale of progress in the city are now
transforming developing properties into strong retail bases. Then of
course, the government permitting foreign direct investment (FDI) up to
51% in retail trade has also brought about major moves in retail industry.
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Agency
The sales broker is a broker who devotes his time and attention to
the bringing about of the sale or exchange of real property.
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COMPANY PROFILE
Mumbai-400031.
Administrative Office:
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VISION
“Benchmarking our services in terms of People, Pace & Passion to
be the best in the Industry.”
MISSION
“To provide creative solutions, by customizing our services to suit the
requirements of our clients. To encourage & facilitate our team to
reach its optimal potential combining its diverse strengths to provide
total customer satisfaction.”
Background
Alliance today has the best talent on its board of directors who are
professionals in real estate, finance, accounting and taxation striving to
render the best of services to its clients. Alliance today has given shape
to and has structured some of the most complex and landmark
transactions for reputed clients.
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Business Segments
Real
Estate
BUSINESS
Management SEGMENTS Financing
consultancy
Franchising
Approach
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Projects Handled-
They had sole mandate to lease the mall which started in October
2007 in Kharghar. Complete project was completed by them with good
anchors and brands as listed below:
They have leased Operational Mall on Palm Beach Road, Vashi. The
list of brands which we introduced to this mall are:
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Other Individual Projects Handled :
Brokerage deals:
Quality Objectives
Continuous improvement in the quality of services.
Prompt response to customer complaints
Strong property data bank.
Aggressive follow up & due diligence.
Panel of associates for legal, finance, market research,
investments and other allied subjects.
Handling properties in all metros and all other cities across the
country.
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An Overview
Residential
Office
Commercial
Retail & Shopping Malls
IT Park
BPO/ Call centre
Hotel & Resorts
Leisure & Entertainments
Hospitals
Multiplexes
Industrial
Institutional.
Advisory Services:
Feasibility Analysis
Relocation Studies
Allied Services:
Project Management
Projects Handled:
CENTURION COMMERCIAL
& SHOPPING COMPLEX
HAWARE’S FANTASIA
BUSINESS PARK
HAWARE’S VASHI
INFOTECH PARK
Plot No. 16, Sector – 30A,
Vashi, Navi Mumbai.
Mr. A came to the site for seeing the shop and buying it to start his
own business. We gave him a fair view of all the shops available with us,
the cost and size of the shop varied differently. The cost of the shop was
dependent upon floor wise also. We had G+3 floors. Among which
ground floor was the most expensive one.
Name of customer :
Address:
Date of booking:
Mobile number:
Office Number:
Residential Number:
Sq Ft.:
After filling booking advice, booking advice will go to Haware head
office,Vashi for confirmation. When that booking goes to head office at
that time shop is confirm for that customer till registration. After
registration legally that shop will transfer to Mr.A’s name.
2 photograph
Through www.iproperty.com.
Business cards can either by a waste of paper or an effective bridge
between a prospect and their potential as a long-term client. So, follow-
ups of all the business cards that were dropped in at the site office were
done on a daily basis.
Brokers & agents were also approached to get their clients for the
deals. Telephone & Email follow-ups also formed a part of my job. There
was face-to-face interaction with the customers for the sale of
shops/offices by convincing them to buy.
It is clear from the above tables that in real estate prices are touching
heights. In some areas the prices are increased by 90-100%. In
Gurgaon and Noida prices has jumped by as much as 200%. The
cheapest DLF apartment in Gurgaon costs Rs. 1 crore.
Clear Title
90% of the lands in India do not have clear title. The ownership is
unclear, thereby creating a scarcity of land. This is due to poor record
keeping and outdated complaint processes. All updated records must be
computerized to increase transparency in land ownership. And special
fast track courts must be set up to clear all legal land disputes in a short
period of time.
Conclusion
After studying all the factors of the real estate it can be concluded that
the Real Estate is a very wide concept and it is highly affected by the
macro-economic factors like GDP, FDI, per capital income, Interest rates
and employment in the nation. The most important factor in the case of
Real Estate is location which affects the value and returns from the Real
Estate. India needs a stronger capital market base for property
financing. The debate on the potential introduction of REITs and real
estate funds points in the right direction. The introduction of REIT s in
2007, will give international investors in particular a familiar investment
vehicle. Private investors could also enter into indirect investment in real
estate. Although interest in new projects is most likely to come primarily
from institutional investors, the rising middle class is likely to seek new
instruments aside from direct property investments in the medium term.
So, in the end we can say that the investment in Real Estate in India is a
very good investment opportunity. But one should be very careful while
taking decision in this direction due to rising inflation and interest rates.
Legal issues should also be kept in mind while choosing a property.