India Real Estate Market
In India, Real Estate is the second largest employer after Agriculture. In past years, Real Estate sector is growing with a CAGR of 30%, making it a marvelous market for investment. Real Estate Industry is divided among four categories, viz. Housing, Retail, Hospitality and Commercial, out of which commercial is the strongest. High and distinct NRI (Non-resident Indians) Investment for both short term and long term have resulted in high growth of Real Estate Market. Bengaluru (Bangalore) is chosen as the most favored destination by real estate investors in 2015 followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Mumbai. Around 19.4% of investors stocked their money in Bangalore, followed by 14.6% in Ahmedabad.
In August 2015, Indian Government approved 100 Smart City projects. Government has also raised FDI limits for townships and settlements development projects to 100%. In Union Budget 2015-16, the government allocated US$ 3.72 billion for housing and urban development. Real estate is currently the 4th largest sector in the country in terms of Foreign Direct Investment (FDI) inflows. Total FDI in the construction development sector during April 2000–May 2015 stood at around US$ 24.07 billion.
High urbanization growth rate, rising salaries, growing IT and Pharma sector and increase in working women population, resulted in high growth of real estate sector in India. Delhi and Mumbai are the biggest centers of real estate market in the country followed by Bangalore and Pune. Mumbai real estate market is matured and saturated because of which it started falling now. Mumbai city have more residential facilities available as compared to population of that city. High prices of apartments is limiting the opportunity for buyers looking for residence.
Till the 1950’s the Indian Housing Market was a small and underdeveloped industry which was of scattered nature and the major players were mainly small private companies or individuals. The change started happening with the rise in prices of oil and gas and the industry entered a boom period which was fuelled by easy credit. This Construction boom went on till the 1970’s when the high liquidity and easy credit caused massive levels of inflation which caused the collapse of the industry. Liberalization and Globalization have effected it the most in a positive way.
Currently the construction Industry contributes more than 16% to the GDP and is expected to expand rapidly in the next 5 years. The industry experienced major levels of growth from 2005-2012 which lead to pileup of high end housing inventory and it mainly because of that the overall price levels increased by close to 15% from 2009-2012. After a cool off the real estate sector is expected to rise again due to rise in investments. Despite high levels of activity in the sector there is a massive shortage of affordable houses in India and that presents a massive opportunity for Foreign Companies. Most of the newly developed houses/flats are for HNI’s and are vacant because of negligible participation from buyers. The market is lucrative because of rising prices which would give a good return on investment in the sector. It has been estimated that the average housing demand in the next 5 years will be close to 6.4 million units which has to be met by private sector particularly the foreign investors. Although problems of providing basic amenities like access to clean drinking water and uninterrupted supply of power remains these problems will be overcome with the general improvements in social overhead infrastructure which shall be seen with increased levels of investment. Overall the real estate market in India has been artificially replete by capital. The Real estate Market in India is expected to grow at a CAGR of XX.XX% till 2020.
What the India Real Estate Market Report Offers
The study elucidates the situation of India and predicts the growth of its Real estate Market. Report talks about growth, market trends, progress, challenges, opportunities, government regulations, technologies in use, growth forecast, major companies, upcoming companies and projects etc. in the Real estate Sector of India. In addition to it, the report also talks about economic conditions of and future forecast of its current economic scenario and effect of its current policy changes in to its economy, reasons and implications on the growth of this sector. Lastly, the report is segmented by Residential and Commercial real estate.
1. Research Methodology
2. Executive Summary
3. Key Findings of The Study
4. India Real Estate Market Overview
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness – Porter’s 5 Force Analysis
4.4 PESTEL Analysis
4.5 Industry Policies
5. Market Dynamics
5.2 India Real Estate Market Drivers
5.2.1 Inflow of Foreign capital
5.2.2 huge demand for houses
5.2.3 High demand for office space
5.2.4 Era of Start-up companies
5.3 India Real Estate Market Restraints
5.3.1 Increasing property rates
5.3.2 Absence of basic infrastructure facilities
5.4 India Real Estate Market Opportunities
5.4.1 Affordable housing seeing massive demand in India
5.4.2 Residential apartments in Tier-2 cities
6. India Real Estate Market
6.2 Segmentation By Type
7. Investment Analysis
7.1 Recent Mergers And Acquisitions
7.2 Investment Outlook
8. Future of India Real Estate Market
9. Competitive Intelligence – Company Profiles
9.2 Oberio Realty
9.3 Prestige Estate
9.4 Jaypee Infratech
9.5 Sobha Developers
9.6 PNC Infratech
9.7 Merlin Group
9.8 Godrej properties
9.9 Sunteck Realty
10. List of figures
11. List of Tables