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Good news : 12.12.12 was NOT the end of the world
But 2013 : Signaled an economic end of the world!!
Global recession now impacting India directly
Inflation in excess of 8% most part of the year
Interest rates continue to stay high
And SENSEX continues to be a roller-coaster ride 
1 Month BSE 30 Index Chart 
Source : infomine.com/
Inflation is eating into your fixed deposits too!!
Is your investment giving you returns, 
or is inflation just eating into your capital? 
Avg. Inflation (8.25%) 
 Lack of good investment options that beat the inflation 
 So where do you invest today?
Today people who hold cash equivalents feel comfortable. 
They shouldnt. They have opted for a terrible long-term 
asset, one that pays virtually nothing and is certain to 
depreciate in value. 
You know, people talk about this being an uncertain time. 
You know, all time is uncertain. I mean, it was uncertain 
back in  in 2007, we just didnt know it was uncertain. It 
was  uncertain on September 10th, 2001. It was uncertain 
on October 18th, 1987, you just didnt know it.
Unlock The Investment Potential 
of Real Estate
Real Estate in India 
Growth in North Indian Cities 
 Investments made in 2007 in real estate in NCR would have doubled your 
capital by now 
 Jan-Mar 2013 Index for Noida, Greater Noida and Gurgaon is 188 
Source: http://www.nhb.org.in/Residex/Data&Graphs.php)
Real Estate Sector in India: 
A Snapshot 
Past 
 Unorganised, fragmented 
industry 
 Characterised as local 
industry without any 
regional and national level 
players 
 Unaccounted sources of 
finance 
 No access to public finance 
 No transparency, weak 
systems and processes 
Present 
 Largely unorganised, in a 
phase of consolidation 
 Institutionalisation on pace 
 Corporatisation  national 
and regional level players 
 Listed real estate companies 
 Global investments 
 Improving transparency 
Future 
 Well-organised industry 
 Marriage of infrastructure 
with real estate 
 Support by growth-oriented 
policies 
 Predominant use of 
technology, including 
cleantech 
 Transparency, open 
availability of data 
Source: iSEC Research | Indian Real Estate Sector | Annual Handbook 2012 | Grant 
Thornton 
Current size of the Industry: US$57 bn 
Percentage of GDP: 6.2% 
Size of the Industry: US$105 bn 
Percentage of GDP: 7.1% 
Next 5 years
Real Estate in India 
The Growth Drivers : the Demand-Supply Gap 
Residential : 
 There will be a total pending demand of 23 lakh units of 
residential property in the next five years, while the estimated 
supply in the same period is expected to be approximately 2 lakh 
units p.a., leaving a shortfall of over 13 lakh units". (Cushman & Wakefield) 
 NCR is expected to record highest demand of over 7 lakh units in 
next 5 years, followed by Mumbai and Bangalore with demands of 
6.51 lakh units and 2.87 lakh units, respectively. ". (Cushman & Wakefield) 
 "There is an acute shortage of homes, especially in and around the 
main cities due to population migration that is happening due to 
growth opportunities. As a result, prices have generally tended to 
increase over the medium to long term." Balaji Raghavan, CEO & CIO, 
Real Estate Fund, IIFL.
Real Estate in India 
The Growth Drivers : the Demand-Supply Gap 
Commercial : 
 Office space absorption in India to grow 21% in 2014-15 (DTZ report) 
 over 2.5 lakh additional analytics jobs by the end of 2015. 
 IT sector to see better growth, create more jobs in 2014-15 
(Kris Gopalakrishnan, Infosys) 
 Office space absorption rose 11 % to 1.38 million sq ft in Delhi-NCR 
during the April- June quarter, over the year-ago period, on higher 
demand from IT/ITeS sector, global property consultant DTZ said. 
http://economictimes.indiatimes.com/markets/real-estate/news/office-space-absorption-up-11-per-cent-in-delhi-ncr/articleshow/39099387.cms
Real Estate in India 
The Growth Drivers : the FDI Inflow 
 Between year 2000-11, India attracted cumulative FDI inflow of US$ 237 
bn. (Rs. 13,03,500 crores) 
 For the eight months of FY 2011-12, India garnered US$ 33 bn (Rs. 
1,81,500 crores), and expected to increase by 20% in 2013-14 
 Housing, Real Estate and Construction account for 14% of all FDI 
 It is estimated that the FDI in the sector will grow from the current 
US$4 billion to US$25 billion within a span of 10 years 
Source: http://www.cedar-consulting.com/pdf/Cedar_USIBC_%20Report.pdf 
)
Real Estate in India 
The Growth Drivers : the +ve Policy Framework 
Some of the recent policy initiatives which are expected to boost further 
transparency, confidence and hence investments in the sector include: 
 The Union Budget 2012-13 proposed 1% Tax Deduction at Source 
(TDS) on transfer of immovable property of beyond Rs 50 lakh 
 Foreign citizens of Indian origin have been granted RBI permission to 
purchase property in India for residential or commercial purposes 
 100% FDI allowed in townships, built-up infrastructure and 
construction development projects 
 51% FDI allowed in multi-brand retail 
Source: http://www.cedar-consulting.com/pdf/Cedar_USIBC_%20Report.pdf 
)
Real Estate in India 
The Growth Drivers : Access to Funding 
 Urban housing fund of Rs 2000 crores set up by the National Housing Bank 
 HDFC, in association with SBI, raising Rs 750 crore for a real estate fund. It is 
likely to invest in residential, commercial, and in IT properties 
 Kotak is also raising a real estate fund while ICICI Venture is in the process of 
raising Rs. 750 crore real estate fund 
 International investors like the US-based Warburg Pincus, Blackstone Group, 
Broadstreet, Morgan Stanley Real Estate Fund (MSREF), Columbia 
Endowment Fund, California Public Employees' Retirement System (CalPERS), 
Hines, Tishman Speyer, Sam Zell's Equity International, JP Morgan Partners 
and Amaranth Advisors have been found to show interest. A few funds 
belonging to Warren Buffet's Berkshire Hathway are also interested. 
Source : http://www.indianground.com/investments.aspx 
)
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  • 2. Good news : 12.12.12 was NOT the end of the world
  • 3. But 2013 : Signaled an economic end of the world!!
  • 4. Global recession now impacting India directly
  • 5. Inflation in excess of 8% most part of the year
  • 6. Interest rates continue to stay high
  • 7. And SENSEX continues to be a roller-coaster ride 1 Month BSE 30 Index Chart Source : infomine.com/
  • 8. Inflation is eating into your fixed deposits too!!
  • 9. Is your investment giving you returns, or is inflation just eating into your capital? Avg. Inflation (8.25%) Lack of good investment options that beat the inflation So where do you invest today?
  • 10. Today people who hold cash equivalents feel comfortable. They shouldnt. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. You know, people talk about this being an uncertain time. You know, all time is uncertain. I mean, it was uncertain back in in 2007, we just didnt know it was uncertain. It was uncertain on September 10th, 2001. It was uncertain on October 18th, 1987, you just didnt know it.
  • 11. Unlock The Investment Potential of Real Estate
  • 12. Real Estate in India Growth in North Indian Cities Investments made in 2007 in real estate in NCR would have doubled your capital by now Jan-Mar 2013 Index for Noida, Greater Noida and Gurgaon is 188 Source: http://www.nhb.org.in/Residex/Data&Graphs.php)
  • 13. Real Estate Sector in India: A Snapshot Past Unorganised, fragmented industry Characterised as local industry without any regional and national level players Unaccounted sources of finance No access to public finance No transparency, weak systems and processes Present Largely unorganised, in a phase of consolidation Institutionalisation on pace Corporatisation national and regional level players Listed real estate companies Global investments Improving transparency Future Well-organised industry Marriage of infrastructure with real estate Support by growth-oriented policies Predominant use of technology, including cleantech Transparency, open availability of data Source: iSEC Research | Indian Real Estate Sector | Annual Handbook 2012 | Grant Thornton Current size of the Industry: US$57 bn Percentage of GDP: 6.2% Size of the Industry: US$105 bn Percentage of GDP: 7.1% Next 5 years
  • 14. Real Estate in India The Growth Drivers : the Demand-Supply Gap Residential : There will be a total pending demand of 23 lakh units of residential property in the next five years, while the estimated supply in the same period is expected to be approximately 2 lakh units p.a., leaving a shortfall of over 13 lakh units". (Cushman & Wakefield) NCR is expected to record highest demand of over 7 lakh units in next 5 years, followed by Mumbai and Bangalore with demands of 6.51 lakh units and 2.87 lakh units, respectively. ". (Cushman & Wakefield) "There is an acute shortage of homes, especially in and around the main cities due to population migration that is happening due to growth opportunities. As a result, prices have generally tended to increase over the medium to long term." Balaji Raghavan, CEO & CIO, Real Estate Fund, IIFL.
  • 15. Real Estate in India The Growth Drivers : the Demand-Supply Gap Commercial : Office space absorption in India to grow 21% in 2014-15 (DTZ report) over 2.5 lakh additional analytics jobs by the end of 2015. IT sector to see better growth, create more jobs in 2014-15 (Kris Gopalakrishnan, Infosys) Office space absorption rose 11 % to 1.38 million sq ft in Delhi-NCR during the April- June quarter, over the year-ago period, on higher demand from IT/ITeS sector, global property consultant DTZ said. http://economictimes.indiatimes.com/markets/real-estate/news/office-space-absorption-up-11-per-cent-in-delhi-ncr/articleshow/39099387.cms
  • 16. Real Estate in India The Growth Drivers : the FDI Inflow Between year 2000-11, India attracted cumulative FDI inflow of US$ 237 bn. (Rs. 13,03,500 crores) For the eight months of FY 2011-12, India garnered US$ 33 bn (Rs. 1,81,500 crores), and expected to increase by 20% in 2013-14 Housing, Real Estate and Construction account for 14% of all FDI It is estimated that the FDI in the sector will grow from the current US$4 billion to US$25 billion within a span of 10 years Source: http://www.cedar-consulting.com/pdf/Cedar_USIBC_%20Report.pdf )
  • 17. Real Estate in India The Growth Drivers : the +ve Policy Framework Some of the recent policy initiatives which are expected to boost further transparency, confidence and hence investments in the sector include: The Union Budget 2012-13 proposed 1% Tax Deduction at Source (TDS) on transfer of immovable property of beyond Rs 50 lakh Foreign citizens of Indian origin have been granted RBI permission to purchase property in India for residential or commercial purposes 100% FDI allowed in townships, built-up infrastructure and construction development projects 51% FDI allowed in multi-brand retail Source: http://www.cedar-consulting.com/pdf/Cedar_USIBC_%20Report.pdf )
  • 18. Real Estate in India The Growth Drivers : Access to Funding Urban housing fund of Rs 2000 crores set up by the National Housing Bank HDFC, in association with SBI, raising Rs 750 crore for a real estate fund. It is likely to invest in residential, commercial, and in IT properties Kotak is also raising a real estate fund while ICICI Venture is in the process of raising Rs. 750 crore real estate fund International investors like the US-based Warburg Pincus, Blackstone Group, Broadstreet, Morgan Stanley Real Estate Fund (MSREF), Columbia Endowment Fund, California Public Employees' Retirement System (CalPERS), Hines, Tishman Speyer, Sam Zell's Equity International, JP Morgan Partners and Amaranth Advisors have been found to show interest. A few funds belonging to Warren Buffet's Berkshire Hathway are also interested. Source : http://www.indianground.com/investments.aspx )