DESTINATION INDIA

India is a huge country with multi religion, culture, language and a world market for everything.

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

- Every year urban areas

gain approximately 67 million people. - Next 30 years virtually all population growth will take place in urban areas of developing countries - By 2030 about 5 billion people are expected to live in urban areas, nearly 60% of the projected global population of 8.3 billion.

Indian Real Estate Scenario

Thrust area for development will be in developing countries like India Asias rural population is projected to decrease from an estimated 2,297 million in 2000 to 2,271 million in 2030

Source : UN Habitat Report

Growing Demand
It means growth rate for urban population in developed countries is 10% 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

Indian Real Estate Scenario

Population Statistics (million)
1981
TOTAL RURAL 683.33 523.87

1991
846.30 628.70

2001
1027.00 742.00

URBAN

159.46

217.60

285.00

Source: Census 2001

Robust Growth

Housing and real estate development is expected to generate over 4 million new jobs by 2015, with demand for houses likely to rise to 80 million for lower middle and low income groups. This would involve an estimated total investment of USD 670 billion, or about USD 34 billion to USD 45 billion per annum : Source ASSOCHEM

The estimates also reveal that the annual growth rate of Indian economy by 2015 will conveniently touch a double digit level of over 12% in which the housing and real estate will have potential to grow at 14% level per annum to double its contribution to GDP from current level of less than 1%.

Real Estate Targets

The Tenth Five Year Plan estimated the 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

Real Estate Funds Requirement

during 5 Year Plans (Amount in Rs. million) Five Year Plan Public Investment Private Investment Total Investment

1st (1951-56) 2nd (1956-61) 3rd (1961-66) 4th (1969-74) 5th (1974-78) 6th (1980-85) 7th (1985-90) 8th (1992-97) 9th (1997-2002) 10th (2002-07)*

2.50 3.00 4.25 6.25 7.96 14.91 24.58 315.00

520.00 990.00 4150.00 3113.00 7263.00

9.00 10.00 11.25 21.75 36.40 180.00 290.00 660.00

1510.00

11.50 13.00 15.50 28.00 44.36 194.91 314.58 975.00

estimated figures as per the Plan Document Source Planning Commission, Govt. India

MUMBAI REAL ESTATE INDUSTRY SIZE

Real Estate industry in Greater Mumbai The Supply = Rs. 328.34 millions 51.71% Residential Rs.169.78 millions 26.38% Commercial Rs. 86.62 millions 21.91% Retail Rs. 71.95 millions

Suburb Central Suburb Island City Western Suburb TOTAL

Residential Sold 25.15 29.18 51.77 106.09 Unsold 16.18 17.92 29.59 63.69 Total 41.33 47.09 81.36 169.78 Sold 4.89 6.85 45.51 57.24

Commercial Unsold 0.86 3.90 24.63 29.38 Total 5.74 10.75 70.13 86.62 Sold 10.51 6.76 21.30 38.56

Retail Unsold 7.20 3.71 22.48 33.38 Total 17.71 10.46 43.78 71.95

June 2005

ANNUAL DEMAND & SUPPLY SIZE

Annual Demand & Supply of Real Estate industry in Greater Mumbai, Navi Mumbai, Thane City & Western Suburb (Beyond Borivali) Annual Supply Rs. 195.91 millions Annual Demand Rs. 244.36 millions

Size of the Industry

Greater Mumbai Annual Supply Rs. 153.74 millions Annual Demand Rs. 191.43 millions

Navi Mumbai Annual Supply Rs. 16.50 millions Annual Demand Rs. 24.80 millions

Thane City Annual Supply Rs. 17.20 millions Annual Demand Rs. 21.73 millions

Western Suburb (Beyond Borivali) Annual Supply Rs. 84.7 millions Annual Demand Rs. 64.0 millions

ANNUAL DEMAND & SUPPLY SIZE

Annual Demand & Supply of Real Estate industry in Greater Mumbai
Annual Supply Rs. 153.74 millions Annual Demand Rs.191.43 millions

Size of the Industry

Residential Annual Supply Rs. 93.23 millions Annual Demand Rs. 142.94 millions Residential Suburb Annual Supply 22.28 21.53 49.42 93.23 Annual Demand 46.42 29.38 67.15 142.94 Under Supply 24.13 7.85 17.73 49.71

Commercial Annual Supply Rs. 25.05 millions Annual Demand Rs. 22.76 millions Commercial Annual Supply 4.15 4.33 16.58 25.05 Annual Demand 23.3 15.7 18.86 22.76 Over / Under Supply -18.2 -27.6 22.8 -23.0 Annual Supply 8.48 3.87 23.10 35.46

Retail Annual Supply Rs. 35.46 millions Retail Annual Demand 5.30 2.15 18.28 25.73 Over / Under Supply -3.18 -17.2 -48.2 -9.72 Annual Demand Rs. 25.73 millions

Central Suburb Island City Western Suburb TOTAL

SUPPLY SIZE IN SQFTS

Real Estate industry in (Greater Mumbai + Navi Mumbai + Thane City + Western Suburb (Beyond Borivali))

The Supply = 11.68 mn Sqfts

69.89%
Greater Mumbai 8.16 mn Sqfts

12.79%
Navi Mumbai 1.49 mn Sqfts

11.05%
Thane City 1.29 mn Sqfts

6.29%
Western Suburb (Beyond Borivali) 0.73 mn Sqfts

SUPPLY SIZE IN SQFTS

Real Estate industry in Greater Mumbai 8.16 mn Sqft 52.94% 32.10% Commercial 2.62 mn Sqft 14.95% Retail

Residential
4.32 mn Sqft

1.22 mn Sqft

Suburb Central Suburb Island City Western Suburb TOTAL

Residential Sold 0.79 0.42 1.40 261 U/c 0.54 0.27 0.90 171 Total 133 69 230 432 Sold 0.28 0.15 1.19 162

Commercial U/c 0.05 0.09 0.86 100 Total 0.33 0.24 2.05 2.62 Sold 0.14 0.09 0.25 0.48

Retail U/c 0.10 0.02 0.62 0.74 Total 0.24 0.11 0.87 1.22

Red Carpet for Real Estate Funds

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

Real Estate Venture Funds

Financing real estate

developers Construction Finance Equity participation in business For acquiring FSI and Land, future projects

The retail industry to-day stands at Rs. 9,30,000 million of which 97 percent is in the unorganised sector including export Source : Ministry of Finance

Now the organised retailing is growing at 30 percent and is expected to grow to Rs.1,10,000 million by 2010.

Quality real estate in the form of Malls, Multiplexes and commercial premises is now available.

Within two years, more than 300 Malls with 40 million sq.ft. of space would come up in all major metros and semi metros in India.

India has moved up from the sixth to the first position in the Global Retail Index. Source : WTO

India is becoming most attractive market in comparison with China and Russia etc and has jumped from 16th to the 3rd position in the Foreign Direct Investment Index.

Why India
Young Generation having good purchasing

power Enhanced Income level Higher Education available within the country Housing Finance growth rate at 73% p.a. Huge demand and limited supply Investor friendly government policies

THANK YOU
Sanjay Chaturvedi