Real Estate & Trends :

• Stock of commercial real estate is expected to grow by 66 Billion USD to 366 Billion USD by 2010.
• Easing of FDI norms have spurted growth.
• Growth of real estate in Tier II & III cities.
• Rapid Urbanization.
• Booming real estate demand due to IT/ITES Banking & Financial services and Telecom growth.
• Entry of MNC in this sector with investment of around 1 Billion USD
• Spiraling growth in Housing, retail , Financial, IT, Telecom, Hospitality and Engineering sector and MNC investment in these areas.

India's Growth Story :

• Macro – Economic Indicators
•       GDP increased to 8% and expected to touch 8.5 to 9 % in coming years .
•       Domestic savings- 24 % of GDP.
•       Foreign exchange reserves up to 170 MUSD as on October 2006 .
•       Foreign inflows $ 7.5 Billion in 2006.
•       Exports touched $ 101 Billion in 2006.

Factors for high growth of Residential real estate :

• Demographic
•       Rise in urban middle class population.
•       Double income house hold on rise.
•       Increasing affordability.
•       Preference for owned houses.
•       Simpler lending norms.
•       Corporate salary package as enabler.

• Government proactive policy
•       Priority sector status for housing loan.
•       Tax benefits.
•       Rationalization of duties & taxes.

• Banks /Housing Finance Companies
•       Innovative.
•       Competitive pricing.
•       Fast disperse of loans.

• KEY DRIVERS:
• Regulatory
•       Liberalization of Telecom, Insurance, Aviation & Financial sector has accelerated the growth.
• Growth in IT/ITES sector
       -   IT/ITES &BPO contributing to 80 % space.
       -   IT industry expected to grow $60 Billion in exports by 2010.
       -   3.0 TO 3.5 million jobs may be outsourced to India by 2015.

• Fast growing middle class population .
• Rise in women in work force.
• Improved purchase power, life style.
• Big corporate like Reliance entrance.
• MNC like wall mark entry to India.
• Retailers targeting 67 cities.
• Government consideration of FDI in this sector.

• Office Space Market : IT and BPO demand over 85 million square feet of commercial space in 3 years.
• Residential Market : Nation wide housing shortage is estimated at 22.4 million residential units .
• Retail Market : More than 50 million square feet of quality retail space is under development and expected to touch 200 Million square feet in 3 years.
• Hospitality : Expected to give rise to over 30 to 35 million square feet in 3 years.

• Securities and exchange board of India (SEBI) has allowed Indian Venture Capital firms to invest in real estate.
• 100% FDI is now allowed in construction sector under automatic route.
• Foreign Investor can now invest in commercial real estate development projects having minimum build up area of 50,000 M2.
• Minimum area of threshold for FDI in intelligent town ship reduced to 25 acres from 100 acres.
• Minimum equity investment cap of $10 M for 100 % FDI projects & $5 M for JV.
• Investment can be repatriated after 3 years of project completion.

• Investment in shares is risk and based on varied factor . Very dynamic.
• Investment in Mutual fund gives 8 to 10 % return and based on shares movement.
• Investment in gold cannot be liquidated as cash component.
• Interest in Bank on FD is only 7% max for three years deposit.
• Investment in real-estate gives min 20% return on any condition.
• Real estate capital market have seen investor with appreciation of 20 to 25 %.