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THE INDIA GROWTH STORY
• Total Population - 1.18 Billion , Second in the world, one of the youngest population: 54% below 25 years
• 350 million strong urban and rural middle class
• 12th largest Economy and 4th Largest in Purchasing Power Parity
• Top 10 growing Economies in the World
• World No.1 in receipt of Remittances ( NRI’s)
• Top 10 services Exporter
• Top 20 exporter of Goods
• 10th largest car market
• Highest English speaking population serving the services sector
India Facts
Macro -Economics
• Economic Growth
– Avg. GDP growth Expected at 8% for 2012
• Inflation at 9.36 percent
• Marginal deceleration in Manufacturing /IIP growth for the current
year
• Significant Growth in the Service Sector, IT/ITES
• 36 percent growth in Exports at US $ 24.8 Billion
• FDI Inflows US$ 30.3 Billion & FII Inflows US$ 31 Billion
• Foreign Exchange Reserves US$ 320 Billion ( Till Oct 2011)
• Regulatory Policies in the Banking sector makes it resilient
compared to other countries
Infrastructure Growth
• Railways: – World's fourth largest railway network – 114,500 KM of total track– 7,500 stations– 30 million passengers and 2.8 million tons of freight daily– With more than 1.36 million employees
• Power– The country is targeting a capacity addition of 62,000 megawatt in the 11th Five
Year Plan between 2012-2017. – 3rd Largest coal producer, 66% power generation coal based– Scope for investment - Over $400 Billion over the next Five years.– Reliance on Renewable energy (Wind based) going forward.
• Airports – More than 335 Civilian airports and 20 international airports– Most of the existing and future airports under PPP model– Planned investment in this sector is US$ 9.7 billion in 5 yrs
• Roads: – Total length approximately 3,320,410 Km,– 3rd largest road network in the world.– Planned investment at US$ 87.2 billion
Infrastructure Growth
• Education: – India's education system one of the main contributors to its economic growth– Much of the progress especially in Higher education, Scientific research has been
credited to various public institutions. – The private education market in India is only 5% estimated to be $68 billion by 2012
• Healthcare– Needs 1 Lakh beds each for the next 20 years– It’s a US $ 77 billion industry– Industry growth at 23% annually.
Social Infrastructure Needs
GDP1970-71 - INR 4.7 lakh CR (US$ 940 Billion)1990-91 - INR 10.8 lakh CR (US$ 2160 Billion)2010-11 - INR 48.8 lakh CR (US$ 9760 Billion)
Per capita income...at constant prices...
1970-71 - INR 8,091 (US$ 162)1990-91 - INR 11,535 (US$ 231)2010-11 - INR 41,129 (US$ 823)
With higher per income, poverty rate dipped from 65% to 35%
Household Savings:1970-71 - INR 4371 CR (US$ 8.7 Billion)1990-91 - INR 104789 CR (US$ 210 Billion)2008-09 - INR 12,61,332 CR (US$ 2523 Billion)This has helped finance the high tempo of economic growth
Then and now, How the economy changed !!!
FDI1970-71 - US$ 0.13 Billion 2010-11 - US$ 30.30 Billion
Forex reserves1970-71 - US$ 0.97 Billion1990-91 - US$ 5.8 Billion2010-11 - US$ 274 Billion
Exports1970-71 - US$ 2.1 Billion1990-91 - US$ 18 Billion2010-11 - US$ 245 BillionThe worlds top exporting nations
Telephone Users1991 - .05 million users2011 - 865 million users!! Mobile revolution has connected India
Then and now, How the economy changed !!!
Passenger cars 1970 - 36032 cars1990 - .18 million cars2010 - 2.9 million carsGlobal auto hub...after telephone ,the most radical change
Air passengers1970 - .48 mm1990 - 8.9 mn2010 - 57 mnCommon Man flies now, unthinkable in 1991 !!!
Pay cheques got bigger!!!!BCCI fees for cricketers1991 - 9000 per test (450 USD) - 3000 per ODI (150 USD)2011 - 7 lakh per test (35,000 USD) - 4 lakh per ODI (20,000 USD)With liberalization came big television and with that big money for sports !
Then and now, How the economy changed !!!
Expenses also went up:
Monthly rental of 2 bed flat in south Mumbai 1991 - INR 40,000 ( 800 USD)2011 - INR 2,50,000 (5000 USD)
Meal for two in a five star Hotel in Delhi1991 - INR600-800 (12-16 USD)2011 - INR2200-3500 (44-70 USD)
Haircut in Delhi ambassador hotel1991 - 32 (64 cents)2011 - 500 (10 USD)
Then and now, How the economy changed !!!
• Dominance of Middle class in the residential sector
• Average age of Home buyers - 28 yrs.
• Change of attitude from “save and buy” to “buy and repay”
• Dual Income families gives flexibility in buying larger homes
• Easy accessibility and choice of home loan
• Considered as an Asset class for Investment, Also an alternative to stock markets
• Good Demand for Office space especially in South India
• Key Driver of growth in office segment being IT/ITES sector
• High Disposable income among young India driving organized retail business
Real Estate Scenario In India REFORMS REQUIRED
• Growing market for all segments
• Housing shortage of 24.7 million dwellings at the beginning of 11th five year plan.
• Growing urban population which is currently 29% expected to grow with huge rural to urban migration
• Organized retail just 4% of the overall market
• FDI in Real estate especially in retail presents a great opportunity for international brands like Carrefour, TESCO, Wal-Mart etc.
• Tier II cities – Scope for Residential & Office
• Infrastructure Projects -Roads, Bridges, Flyovers etc
• PPP with Government
• Special Economic Zones
• Township Developments
Opportunities
• Consolidation & emergence of a few PAN India Operators
• Foreign players
• FDI
• Townships
• Tier I cities– Maturing of markets– Stability in prices– 10-12% annualized growth
• Tier II cities– Emergence – 10-20% annualized growth
Future Of Real Estate
• Sustained demand for quality housing
• Demand for villas and themed developments
• Continued growth in IT & BPO segment
• Consolidation of large IT players into Captive Campus environment
• Steady growth in Retail
Market Outlook
ResidentialApartments
Villa Developments
Leisure Properties Retail/ Entertainment
Retail Store Malls
Specialty MallsFood Courts
Mall Management
CommercialCorporate Office Space
Technology Parks Corporate Fit Outs
Built to suit Facilities/ Campuses HospitalityHotels Resorts/
Spa Serviced
apartments Convention
Centre
ServicesProject Management
Property Management Construction Management
Business Verticals
PRESTIGE TECHNOLOGY PARK UB CITY
Commercial Showcase
Commercial Showcase
RESIDENTIAL SHOWCASE
Retail/Hospitality Projects
CAMPUS/BUILT TO SUIT DEVELOPMENTS
AWARD WINNING PROJECTS – CESSNA BUSINESS PARK
FIABCI PRIX D EXCELLENCE 2011WINNER
INDUSTRIAL CATEGORY
PRESTIGE TECHNOLOGY PARK
UB CITY
THANK YOU !! Presented By :
FAROOK MAHMOOD, FRICS Chairman & Managing Director, Silverline Realty (P) Ltd. Vice President FIABCI World Council of Brokers.Founder President, National Association Of Realtors - IndiaImmediate Past President, Bangalore Realtors Association-IndiaDirector, ICREA International Advisor, FNAIM
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