Rahul Soni Vikas Kumar Chouhan

What is Real Estate industry? (an overview)  The Indian real estate sector is one of the fastest growing and globally recognised sectors.  It comprises four sub sectors-housing, retail, hospitality, and commercial.  India ranks third for the most LEED (Leadership in Energy and Environmental Design)-certified space globally, with nearly 12 million sq. m.  In future the total realty market in the country is expected to touch US$ 180 billion by 2020.

Current scenario of this industry  Recent years have seen the Indian real estate sector grow, especially the commercial real estate segment. According to a study by Knight Frank, Mumbai is the best city in India for commercial real estate investment, with returns of per cent likely in the next five years.  The residential segment of real estate has also seen tremendous growth in recent years owing to the continuous growth in population, migration towards urban areas, ample job opportunities in service sectors, growing income levels, rise in nuclear families and easy availability of finance.  With the government allowing 100 percent foreign direct investment (FDI) in this sector, the number of foreign firms owning real estate projects in India has also increased.

Government Initiatives  The Government of India has announced a host of measures to spur the real estate sector, which include an allocation of Rs.7,060 crore (US$ 1.16 billion) for the development of 100 smart cities.  A committee on Streamlining Approval Procedure for Real Estate Projects (SAPREP) was constituted by the Ministry of Housing & Urban Poverty Alleviation (MHUPA) to streamline the process of seeking clearances for real estate projects.  The Indian Green Building Council (IGBC) has joined hands with the US Green Building Council (USGBC) to strengthen their association for the next 10 years to focus on areas of knowledge exchange and work on the green building movement in India.  Measures taken by various State Government; for instance- the Punjab government has proposed to exempt residents having houses with an area of up to 125 square yards from paying the levy and delink tax payment from collector rates. It has also proposed to keep vacant plots out of the ambit of property tax which will be implemented during

What makes this industry to grow  rise in demand for office as well as residential space  100 percent foreign direct investment (FDI) in this sector  FDI worth US$ 23, million in the period April 2000-June 2014  continuous growth in population & rise in nuclear families  number of new launches in the first quarter of 2014 has increased by 43 per cent at 55,000 units across eight major cities  migration towards urban areas  ample job opportunities in service sectors & growing income levels  easy availability of finance  increasing the limit of interest deduction on home loans  Excise duty reduction on cement and steel

Real estate sector’s contribution to the country’s GDP  On an average, real estate contributes 8% to India’s GDP & real estate (19.5% CAGR) has witnessed tremendous growth since 2001 Contribution of Real estate and Construction to India’s GDP (USD Bn) Source: RICS Research: Real estate and construction professionals in India 2020

FDI in real estate as a per cent of total FDI in India  Total FDI in the real estate sector during April 2000 – September 2013 stood at around US$ 22.7 billion.

Key Players of Real Estate sector  Hiranandani Developers  Omaxe Builders Private Ltd.  Jaypee Group  Supertech Ltd.  Unitech Ltd.  Godrej Properties  DLF Ltd.

6 Key Pillars to streamline real estate project approvals Bring transparency, predictability and accountability to protect consumer interest 1 Review existing systems and procedures 2 Single Window or ‘One-Stop Shop’ enabled by IT 3 Reforms to promote affordable and green housing 4 Share best practices and incentivize States 5 Capacity building in private and public sector 6

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