Professional Documents
Culture Documents
Module 1.2
The market size of real estate in India is expected to increase at a CAGR of 15.2 per
cent during FY2008 - 2028 and is estimated to be worth USD853 billion by 2028 (
Report C&W , Knight Frank)
Demand for residential properties has surged due to increased urbanization and
rising household income
About 10 million people migrate to cities every year
35 per cent of the population is in young age bracket (15-35 years)
Indias urban population as a percentage of total population was around 32
per cent in 2014 and is expected to rise to 40.0 per cent by 2030. There will
be a shortage of 20 million houses by 2030 in Urban areas leading to a
massive demand supply gap (Source: Indian Census, World Bank, Mckinsey
estimates, Cushman & Wakefield)
The government has allowed FDI of up to 100 per cent in development projects for
townships and settlements
Real estate contribution to Indias GDP is estimated to increase to about 13 per cent
by 2028
Current market of real estate is a completely buyer driven market because of
sluggish demand. Henceforth developers have come out with payment plans which
were never heard before making it an absolute right time to enter in the market.
Delhi-NCR real estate market is expected to move up by 50% aprox in terms of private
equity investment in real estate market.
Major destinations for PE investment of NCR will be Noida, Greater Noida (west) Yamuna
expressway and Ghaziabad. NCR real estate received an investment of Rs 1650 crore in
2013, which is almost more than double of last 2012s PE investment
Key Influencers for Delhi NCR
Approval of Noida-Greater Noida Metro by Ministry of Urban Development in April 2014
Industrial developments near SohnaIMT Sohna and Ascendas IT Special Economic Zone
Widening of NH-24 and linking NH-58 with NH-24
Announcement of 37 new power substations in Gurgaon, Sectors 58-115 in June 2014
Approval of the proposed 9.71-km metro extension from Dilshad Garden to New BusStand in Ghaziabad
Extension of Delhi Metro from Badarpur to YMCA Chowk in Faridabad to start functioning
soon
Faridabad-Noida-Gurgaon (FNG) Expressway, Southern Peripheral Road and KundliManesar-Palwal
Expressway emerging as major corridors with prominent residential developments. KMP
and KGP expressways will decongest Delhi/NCR
equities
(BSE
Sensex),
commodities (gold), bank fixed Deposits
(1-3
year
maturities),
government
securities (10-year maturity), and real
estate. It was aimed at finding out which
asset class would have provided the
highest return since the liberalisation
process commenced in 1991.
After real estate, equities have also
performed strongly in India as the stock
market gave a healthy annualised return
of 15.5 per cent on a nominal basis
during the past 23 years.
Mutual funds have shown 12%.
After adjustment of inflation returns on
M.F and Shares goes down further.
equities
(BSE
Sensex),
commodities (gold), bank fixed Deposits
(1-3
year
maturities),
government
securities (10-year maturity), and real
estate. It was aimed at finding out which
asset class would have provided the
highest return since the liberalisation
process commenced in 1991.
Looking at the overall returns, the study
noted that "real estate appears to have
outperformed all other asset classes
during the 23-year period with an
annualised rate of 20 per cent."
Projects such as Jaypee Wish Town, Supertech Supernova , Unitech Grande , Lotus
Sports city will make the expressway the prime location in Noida in the near future.
11 Luxury 5 star hotels are planned on Expressway such as Grand Hyatt, Clarkston
,Leela ,JP ,Le Meridian ,intercontinental , ITC etc. will make the expressway a posh
residential stretch. Close to 15000 Crore of hospitality investment is planned on
Expressway.
With Special Economic Zones (SEZ) along the expressway, many more MNCs will
mark their presence on the Noida Expressway.
Sec-93A is the prime residential sector along the expressway with average rental rate
of Rs.20-25,000 for a 2BHK and average resale price of Rs.13,000 per sq.ft.
The FNG (Faridabad-Noida-Ghaziabad) road will cut across the Noida Expressway
giving easy connectivity to Ghaziabad and Faridabad as well.
The expressway is prepared to handle heavy vehicular traffic in the future with the
scope of adding another 75 meters to the existing 75 meter width.
Internationally bank interest rates are declining. All developed countries have far lesser or
even negative returns as compared to India. In days to come, RBI will slowly reduce the
interest rate once inflation is under control. This will fuel demand for commercial properties
and exit at such a point of time will give best returns for your property.
Annual rental yield on commercial properties ranges from 8 -12% p.a. With capital
appreciation filtered in, the annual yield increases to 16% - 20%.
Prevailing rental yield in NCR is around 7.5% to 8%, whereas Mumbai fetches yield of 9%
to 12% (in commercial properties)
it is seen that investments in Real Estate Investment Trusts (REITs special formed trusts
to invest in commercial ( rent yielding properties) has given best returns. With REIT
entering in Indian market demand for commercial properties will further grow.
With residential yields at 2-3 per cent and commercial yields at 8-12 per cent, investing in
the latter makes sense.
Malls which are based on a concept of attracting higher footfall are more successful and
yield higher rental value compared to Malls which are developed by builder for the purpose
of selling. Like DLF malls despite of big name are not running very successfully as compared
to Ambience which because of concept run more successfully because of concept. GIP also
yields much higher rentals because it pulls much more crowd as it is based on concept
Module 1.2
Module 1.2
Module 1.2
Achievements
Opened
offices in
Singapore
and Dubai.
Coming up
soon in USA
& CANADA.
Module 1.2
1.
2.
No. 1 Real Estate Company, sold more than 90K properties since 2006.
We have PAN INDIA presence 14 offices across India and 2 international
locations.
3. Consistently won R & Rs in various surveys for last 3 years.
4. Net worth of of 1000 Cr speaks of the Reliability
5. 1.5 lakh sq. feet area of office, 1500 sq. ft. area being added every
month.
6. 2100 professionals associated with us from diversified industry
background.
7. Tied up 200 developers and are currently doing more than 400 projects
across the country.
8. Variety of investment options that range from 1.5 lakh -18 Cr.
9. Loan Department ,customer care department , resale department to
take care of all requirements of the customer
10. One stop shop for all the needs of a client
Yamuna Expressway
Industry
Industry DMIC
Educational Institutions
G.B.University
Tourism
Night Safari
Noida Expressway will be the first such
development in India and the fourth in
the world, after Singapore, China and
Thailand. Covering a total of 550 acres
along with existing forest.
Night Safari will be designed by
renowned zoo designer Bernard
Harrison, who has also designed world
famous Singapore Night Safari.
Proposed
Night Safari has already received
clearance from Central Zoo Authority
and the project has been cleared by
Supreme Court of India from all legal
objections.
Tourism
Cricket stadium
Tourism
F1 Track
Analysis of properties
near F1
IT/ITES
Infrastructure Eastern
Expressway
Peripheral