Before

Real estate in India was unorganized. Lack of uniformity in local laws and their application. Non availability of bank financing, high interest rates, and transfer taxes . Lack of transparency in transaction values.

After..

Greater organization and transparency. Greater availability of financing for real estate developers. Regulatory changes permitting foreign investment. Hightened consumer expectations influenced by higher disposable incomes. Increased globalization.

key growth driver of the countrys economy. One of the highest FDI-attracting sectors in India. Growth in the services sector DLF, Unitech, AnsalProperties, K. Raheja Corporation and Parsvnath Developers Emaar, Ascendas, Keppel Land, Tishman Speyer and Nakheel Group.

Real Estate Sector

Residentia Commerci al space l space

Retail

space

Hospitalit y space

Special

economic zones

Demand pull factors: Robust and sustained macroeconomic growth Upsurge in industrial and business activity, especially in new economy sectors. Favorable demographic parameters. Significant rise in consumerism. Rapid urbanization. Availability of a range of financing options at affordable interest rates.

Impact of demand pull factors: Increasing occupier base. Significant rise in demand for office/industrial space. Demand for new avenues for entertainment, leisure and shopping. Creation of demand for new housing.

Policy and regulatory reforms Positive outlook of global investors. Fiscal incentives to developers. Simplification of urban development guidelines. Infrastructure support and development initiatives from the GoI.

Impact of supply push factors: Entry of several domestic and foreign players; increasing competition and consumer affordability. Easy access to project-financing options. Increased developers risk appetite and large-scale development. Improved quality of real estate assets. Development of new urban areas and effective utilization of prime land parcels in large cities.

High growth projections Multiple growth drivers Rapid evolution of the sector Increased foreign investments Well defined regulatory framework Demand for affordable housing

Modification in the rent control act to provide greater protection to home owners wishing to rent out their properties. Rationalization of property taxes in a number of states. The proposed computerization of land records.

Budget analysis: Policy impact Direct tax impact Indirect tax impact

The confederation of real estate developers association of India(CREDIA) Builders Association of India

DEMAND DRIVERS

The trends have benefited from substantial recent growth in Indian economy, which has stimulated demand for land and developed real estate across the real estate industry.

Real Estate Sector In India

Residential real estate development

Commercial real estate development

Retail real estate development

Tourism and Hospitality industry

Special economic zones

Infra structure development project

Commercial Real Estate Development

Residential Real Estate Development

By rising disposable incomes Rapidly growth middle class Low interest rates Fiscal incentives Hightened customer expectations

Retail Real Estate Development

By demographic factors By increasing disposable incomes Changes in shopping habits Entry of international retailers Growing no. of retail malls

Tourism and Hospitality

The hotel industry in India has grown as a result of Growing economy, increased business travel and tourism The hospitality segment has witnessed robust demand growth, primarily due to strong growth in tourism, including both business and leisure travel. India is becoming increasingly popular as a medical tourism destination. Hospitality players are diversifying into budget hotels and service apartments.

Conditions for Development Minimum 10 hectares to be developed for serviced housing plots For construction-development projects, minimum built-up area of 50,000 square meters prescribed In case of a combination project, any one of the above two conditions should suffice At least 50 per cent of project to be developed within 5 years from date of statutory clearances

Guidelines for FDI In Real Estate in India Conditions for Investment Minimum capitalization of US$ 10 million for wholly owned subsidiaries & US$ five million for joint ventures with Indian partners Infusion of funds within six months of commencement of business Original investment cannot be repatriated before a period of three years from completion of minimum capitalization. Investor may be permitted to exit earlier with prior government approval.

Guidelines for FDI In Real Estate in India Miscellaneous Conditions Investor not permitted to sell undeveloped plots Project to conform to norms and standards laid down by respective State authorities Investor responsible for obtaining all necessary approvals as prescribed under applicable rules/byIaws/regulations of the State Concerned Authority to monitor compliance of above conditions by developer

Key Highlights

Several global investors and developers keen on investing in India.

FDI inflows estimated to be US$ 19.5 billion in 2007 and, US$ 7.5 billion in the first five months of 2008. FDI in the sector expected to touch US$ 25 to 28 billion by 2011

2006-2007 2007-2008 real estate 2008-2009 2009-2010 0 5 10 15 other sectors

Real estate share in FDI

Key Highlights Majority of the direct investment is from West Asia with overall commitment of US$ 9.7 billion from Dubai based developers.

Further, investor from USA and Europe have shown keen interest with the launch of several RE funds.

2% 10% 4% Dubai 25% Indonesia 59%

Singapore
Malaysia others

Major countries investing in Indian Real Estate

Rationalization of process : Rationalization of the regulations in governance affecting real estate For example, improved land records, rationalizing stamp duty across states, simplifying urban development guidelines etc. Social Infrastructure: Focus from both public and private sector Different models for foreign investment being evaluated.

Government incentives: SEZ Act, 2006 provides major Tax benefits, Tax relief and Single window clearance and approval Urban Infrastructure Development: Focus on urban infrastructure Urban Reform schemes * JNNURM * City Challenge Fund * Mega Cities Fund

Policy Impact NHB to introduce reverse mortgage Senior citizens to receive monthly income against their property They do no have to repay the loan

Regulations for mortgage guarantee companies

Guaranteeing mortgages on the behalf of the banks and finance companies.

Direct Tax Impact Reduction in tax burden due to increase in threshold limits on individual tax slabs No change in corporate income tax rates and surcharge. 100 per cent tax holiday for five years for hotels and convention centres in World Heritage sites if they start functioning before March 31, 2013. 100 per cent tax holiday for five years anywhere in

IndirectTax Impact General rate of excise duty reduced from 16 per cent to 14 per cent. Excise duty revised on bulk cement from US$ 10 per tonne to 14 per cent of assessable value or US$ 9.8 per tonne, whichever is higher. No change in service tax rate Seven new taxable services included in the service tax net

APPRAISAL

BROKERAGE PROPERTY

DEVELOPMENT

MANAGEMENT REAL ESTATE MARKETING RELOCATION SERVICES

Owner/user Owner Renter Developer Renovators Facilators

DEMAND SUPPLY

ANALYSIS PROPERTY

Foreign Real

Funds.

Estate Exposure Of Banks.

Geographic de-concentration of real estate activity from large metros. Green buildings are gaining popularity. Affordable housing is still the buzzword. Recovery in demand for luxury projects.

Growth not only in the metros, Also in the surrounding regions. The suburban areas developing at a faster pace . NRIs and foreign investors eyeing Indian property as lucrative Worlds renowned banks like Morgan Stanley, etc. now investing in the Indian Real Estate market. Tremendously hiked prices and large returns assured.

Global Investors Interested in Indian Real Estate: Cushman & Wakefield

Steady expansion and development in the IT sector of India. Adoption of Foreign Direct Investment (FDI) policy. Easy access to bank loans. Growth in Indian economy.

Pune Nagar Road - the preferred location. Economically vibrant areas of the city on the Eastside. Development taking place and the name is gaining national and even international prominence. Nagar Road is experiencing the full impetus of development in all important respects. Growing IT/ITES/BPO sectors along with the rapid improvement of physical and social infrastructure in city

Bangalore The Metro countdown is on. Next couple of years - the metro network is scheduled to be complete. The Metro promises to be a game changer for the citys property sector. The Outer Ring Road (ORR) and the six-laning of Bellary Road The prospects from the Metro are much more. While these roads brought connectivity to specific localities in the vicinity, the Metro networks the entire city.

Suffer in second half of the current financial year. Drop in home sales and a slowdown in office leasing transactions. Mumbai and NCR home state decline due to high home loan rates and property prices.

Attaining a twofold increase. Market experts predict that the coming years will witness a boon in the Indian Real Estate Scenario Property business will turn out to be a cash processing machine. Anyone investing in property is sure to reap large profits.

COMPANY PROFILE
Conglomerate of 35 companies with Ansal API, AHCL, ABL All three engages in real estate ZZ development activity Employing 5000 People nation wide All three companies have acquire the ISO 9001-2000 certificate

FUTURE PROSPECTS
Intend to shift its focus to value added development or constructed property

Expansion into hospitality

Focus on premium location in TIER 211 cities of north India

Establishment
Established in 1972 by group of Engineers Initially started consultancy firm for soil and foundation engineering Established Real Estate Business in Gurgaon in 1986.

unitech

COMPANY PROFILE
The groups principal activities are: Construction Real estate development Consultancy in related areas. Hotels Information technology Electrical transmission

Mr. Ramesh Chandra the Executive Chairman of Unitech

Ajay Chandra, son of Mr. Ramesh Chandra, is Managing Director of Unitech.

Sanjay Chandra, the other son of Mr. Ramesh Chandra, is also Managing Director of Unitech

FUTURE PROSPECTS

Achieve high growth by establishing a pan India presence Focus on major economical centers Focus on profitable projects that maximize returns Undertake large mixeduse projects like integrated township in the suburbs of main cities.

since 1990

Parsvnath Developers Ltd.

PDL is one of the leading real estate companies in India Diverse business portfolio of commercial complexes, shopping mall, integrated township and group housing Strengthening its position in core operations if real estate First real estate company to achieve a NAREDCO-ICRA DR 2rating

Company profile:

PDL Chairman: Pradeep Jain

since 1990

Parsvnath Developers Ltd.

Plans to have at least 17 hotels across 13 cities operational by 2011 Expanding footprints in newer locations across India Participation in re-development of land Exploring possibilities of power generation & distribution. Exploring infrastructural projects

Future prospects:

PDL Chairman: Pradeep Jain

since 1990

Parsvnath Developers Ltd.

PDL has a pan-India presence and an experience of more than 17 year in offering state of the art construction

Marketing Network:

PDL Chairman: Pradeep Jain

since 1989

COMPANY PROFILE: Began life as a civil construction and contracting company Executed more than 120 Industries, Institutional, Commercials, Residential & Hospitals. Entered business in 2001
Rohtas Goel, CMD, Omaxe Ltd

since 1989

FUTURE PROSPECTS: Planning to invest Rs. 20 billion in its hotel project in 11 cities across India. Also planning a Rs 20-30 billion in Punjab. Also planning to invest 2 billion in DUBAI Real Estate projects They have exhaustive plans to upgrade living environs of smaller cities in North India in next 5 years.

Company profile:
Pioneered the concept of truly international quality in construction industry. ensured consistent international quality to costumers resulting the industry benchmark for international quality Built residential, contractual and commercial projects Accepted as the industry benchmark for world class building techniques and quality standards Enjoys an ever widening reputation for reliability, dependability and honesty

Year of Establishment : 1995 By Mr. P N C

Menon

Future Prospects:
They anticipate building a presences in varied industries including hotels and resorts. Hypermarkets, Home stores and building materials.

Year of Establishment : 1995 By Mr. P N C

Menon

...commended operation in India in 2005

Company profile:
Its a joint venture b/w Emmar properties PJSC of Dubai and MGF Development Ltd.

Development in residential, commercial, retail and hospitality sectors

Also identified healthcare, education and infrastructure as business line

Aspects of real estate development , such as land identification and acquisition, projects planning, designing, marketing and execution

since 1917

Company Profile:
The firm represents clients in buying, selling, financing, leasing, managing and valuing assets

Largest privately held real estate in

It has 195 offices in 55 countries around the globe and 11,000+ talented professional

Involved in every stage of the real estate process, from strategy to execution

since 1917

Future Prospects
Cushman & Wakefield India offers a full range of real estate services combining local expertise and experience with technology and standards of service that are well established and consistent across all Cushman & Wakefield's offices worldwide. Our main service offerings are:

Consultancy Services Transaction Services Capital Markets Group Client solutions Project Management Facilities and Property Management

There is a shortage of 12 million housing units in urban areas There is a scope for 400 township projects over the next five years spread across 30 to 35 cities, each having a population of 0.5 million Total project value dedicated to low and middle income housing in the next seven years is estimated at USD 40 billion Instrumental such as mortgage-backed security(MBS) Commercial and collateralized debt obligations(CDO) are being use to make capital work more efficiently