INDIAN REAL ESTATE MARKET2014-15.

Gift from SUNIL SETH KAKKAD MOBILE 9820614117

NAMSATE@INDIA

• India is 2nd largest country in the World in terms of population after China. As per 2012 figure, India’s population is 1.237 billion which is the second largest after China (1.351). As per the latest analysis and prediction, India will become world’s largest country in population by 2020

State and union territory capital

State and union territory capital

State and union territory capital

State and union territory capital

Introduction• The Indian real estate sector is one of the fastest growing and globally recognised

sectors. It comprises four sub sectors-housing, retail, hospitality, and commercial. The real estate industry's growth is linked to developments in the retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals, schools) and information technology (IT)-enabled services (like call centres) etc and vice versa. The total realty market in the country is expected to touch US$ 180 billion by 2020.

• India ranks third for the most LEED (Leadership in Energy and Environmental Design)-certified space globally, with nearly 12 million sq m. The LEED system is the most widely used rating system guiding the design, construction, operations and maintenance of green buildings.

• Private equity (PE) funding has picked up in the last one year due to attractive valuations and low level of bank funding to the sector. Delhi NCR alone has already attracted PE investments of Rs 80 crore (US$ 13.22 million) in first quarter of 2014.Moreover, with the government trying to introduce developer and buyer friendly policies, the outlook for the real estate sector in 2014 looks promising.

Market size• Recent years have seen the Indian real estate sector grow, especially the commercial real estate segment.

According to a study by Knight Frank, Mumbai is the best city in India for commercial real estate investment, with returns of 12-19 per cent likely in the next five years. Bangalore and Delhi-National Capital Region (NCR) come second and third on the list, with returns of 12 per cent and 8-11 per cent respectively. Delhi-NCR was the biggest office market in India with 110 million sq ft, out of which 88 million sq ft were occupied.

• The residential segment of real estate has also seen tremendous growth in recent years owing to the continuous growth in population, migration towards urban areas, ample job opportunities in service sectors, growing income levels, rise in nuclear families and easy availability of finance.

• In the residential segment, the number of new launches in the first quarter of 2014 has increased by 43 per cent at 55,000 units across eight major cities. Bengaluru recorded the largest number of units launched, an increase of 22 per cent at 16,838 units, followed by Mumbai and Chennai with new launches at 10,698 units and 7,436 units with a growth rate of 93 per cent and 191 per cent respectively, during the first quarter.

• With the government allowing 100 percent foreign direct investment (FDI) in this sector, the number of foreign firms owning real estate projects in India has also increased. The construction development sector, including townships, housing, built-up infrastructure and construction-development projects garnered total FDI worth US$ 23,587.25 million in the period April 2000-June 2014.

Indian Economy

India’s economy is expanding rapidly. By 2030 it is expected to have grown by fivetimes, buoyed largely by the country’s urban centres. During the same period, thecountry’s labour force is expected to grow by 270 million workers, with urban jobsaccounting for 70% of that growth.Today, India is less than 30 per cent urban and the quality of life in its cities ischronically low. However, with 2/3rds of GDP already generated in India’s citiesand rural to urban migration patterns accelerating, the country faces a criticalchallenge: managing this rapid urbanization in a way that enhances the livabilityof India’s urban spaces.

New Delhi: India is Asia’s third largest economy and is growing every year especially due to its major financial powerhouses - metropolitan cities. Mumbai most developed city of India, is the world’s 29th largest by GDP. It is the centre of trade and commerce. It is home to important financial institutions like RBI, BSE, NSE, It is responsible for 25% of industrial output, 70% of maritime trade in India and 70% of capital transactions to the nation’s economy.Kolkata With the contribution of 150 billion dollar to the GDP of India, it has become the third developed city of the nation. The city is one of the important financial hubs of East and North-East India and houses the Calcutta Stock Exchange.Bangalore The IT hub of India contributes GDP of 83 billion dollar. The silicon valley of India is home to various IT companies like Infosys and Wipro. Indian Space Research Organisation and Hindustan Aeronautics Limited are headquartered in the city. It is also a biotechnology giant.

TOP CITIES OF INDIA

TOP CITIES OF INDIA Hyderabad: Another IT city contributes about 74 billion dollar in terms of GDP to the country. The city has the highest number of special economic zones among all the cities in the country.CHENNAI The second largest exporter of IT and BPOs, is the backbone of economy. It is also a major automobile city. The GDP of the city had increased to 12.39% . AHMEDBADT: This largest industrial hub in Gujarat contributes a GDP of about $64 billion. The city is a home for the developing textile and garment industry. PUNE: The second largest city of Maharashtra, Pune contributes a GDP of $48 billion. Although Pune is known for its educational facilities, the city has developed its manufacturing, glass, sugar and forging industries.SURAT:-The well developed commercial city of Gujarat, Surat has contributed a GDP of $40 billion. The city is popularly known as the diamond capital of the world and the textile capital of India. VISHAKAPATHNAM :-T he industrial city, Visakhapatnam has contributed a GDP of $26 billion. The city is home for various state owned heavy industries and a steel plants.

(DMIC) is India’s most ambitious Infrastructure programmed aiming to develop new industrial cities as “Smart Cities” and converging next generation technologies across infrastructure sectors.

Developing India

Industrial Smart CitiesThe government has spelt out certain transit corridors along which the Smart Cities will evolve. The Amritsar-Kolkata Industrial master planning will be completed expeditiously for the establishment of the industrial smart cities in seven states of India. The planning of three new Smart Cities in the Chennai-Bangalore Industrial Corridor region, viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka will also be completed.The Bangalore-Mumbai Economic corridor (BMEC) and Vishakhapatnam-Chennai corridor would also be completed with the provision for 20 new industrial clusters.

The New Town ConceptExisting cities have had huge extensions which are almost like new towns. Someexamples are Rohini, Dwarka and Narela as extensions to Delhi, Navi Mumbai toMumbai, Salt Lake City to Kolkata and Yelhanka and Kengeri to Bangalore. Noida,Greater Noida, Manesar, Pimpri-Chinchwad, Rajarhat, Dankuni, etc are otherexamples of such new towns.

SmartCity Kochi (SCK), a joint venture between SmartCity Dubai and the Keralagovernment, has approved the concept master plan of the project. The first phaseof the project is expected to be operational within 18 months which includes abuilding spread over 3.5lakh sq.ft. The project will enjoy a single special economiczone (SEZ) status due to the revision of guidelines for SEZs being initiated by theUnion government. The project will be considered single even though there is awater body seperating the land into two parts. With the notification of the revisedguidelines, the entire 246 acres will recieve a single SEZ status.This stage includes final detailed master plan, environmental and sustainabilitystudy, urban design landscape guidelines, traffic impact study and plotdevelopment guidelines.The project, sprawling over 246 acres at Edachira, Kakkanad is expected togenerate 90,000 direct jobs

SMARTCITY KOCHI

Gujarat International Finance Tech-City or GIFT is an under-construction cityin the Indian state of Gujarat which is about 12 kms from AhmedabadInternational Airport. It will be built on 500 acres (2.0 km2) of land. Its mainpurpose is to provide high quality physical infrastructure (electricity, water, gas,district cooling, roads, telecoms and broadband), so that finance and tech firmscan relocate their operations there from Mumbai, Bangalore, Gurgaon etc. whereinfrastructure is either inadequate or very expensive.t will have a special economic zone (SEZ), international educationzone, integrated townships, an entertainment zone, hotels, a convention center,an international techno park, Software Technology Parks of India (STPI) units,shopping malls, stock exchanges and service units.GIFT aims at providing transportation network which ensures accessibility, easy &fast mobility and zero road accidental deaths.

GUJARAT INTERNATIONAL FINANCE TECH CITY (GIFT)

Demand for hotel -2014

Mumbai (North and South), NCR, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, Goa, Jaipur, Agra and Kerala. Gurgaon, Aurangabad, surat& Vishakhapatnam

Top 16 most populated cities in India

EARTHQUAKESESAMIC

ZONE OF INDIA

INDIA FLOOD PRONE AREAS

BEST CITIES TO LIVE IN NORTH INDIA

BEST CITIES TO LIVE IN WEST INDIA

BEST CITIES TO LIVE IN SOUTH INDIA

Investment Tips in INDIA

The critical ones that highlight the potential of any property markets are: 1. Existing infrastructure readiness 2. Execution / implementation timelines for new infrastructure initiatives, 3. Demand for commercial space in the market (leading to job creation), 4. Social infrastructure, and 5. Price trends

Factoring in all these five aspects and considering them against the prevailing market environment, the top Residential property investment cities today are:1. Hyderabad 2. Bangalore 3. Chennai 4. Pune 5. Noida, and 6. Navi Mumbai.

COMMERCIAL & OFFICE SET UP IN INDIABangalore, Delhi , Mumbai , Tirusulam Chennai , hyderabad , kolkatta , Ahmadabad , Thiruvananthapuram , Nagpur, chandigargh , Mangalore, Navi Mumbai , pune , Tiruchirapalli , Lucknow , Coimbatore , Kanpur , Vijayawada , Mysore , vadodra & Ludhiana ,Noida & Gurgoan

Outlook for 2014-15

CONCLUSION • change in the political leadership

now could mean that the incoming leadership could challenge most of the policies already in place causing a dramatic upheaval. This is not particular to the real estate market, which is good and expected to be great in the future, but the future is just that, it is unpredictable.

• The old Chinese curse goes, “May you live in interesting times.” Unfortunately, we in India are now living in very, very interesting times regarding the future.

BY SUNIL SETH KAKKAD

TIME TO SAY GOOD BYEE

SUNIL SETH KAKKAD CONTACT

• sethkakkad@gmail.com

• NAVI MUMBAI 400706 MAHARASHTRA INDIA

• Mobile no

• 9820614117