INDIAN REALESTATE MARKET OVERVIEW

Transcription

1 INDIAN REALESTATE MARKET OVERVIEW

2 INDIA AT A GLANCE Capital States Area Coastline : New Delhi : 28 States and 7 U.T. : 3.28 million Sq. Km : 7,516 km Population : 1.27 Billion (aprox.) Major Cities : Delhi, Mumbai, Chennai, Kolkata, Banglore

3 Political Situation Presently India is passing through uncertainty in Political stability. General Elections are in way. To have stable Government is the need of hour.

4 Major Policy Changes In 2013, Land Acquisition Bill was amended, now, in case of compulsory acquisition of land, the land owner will get 4x of market rate in rural areas and 2x in urban area. Govt. also restricted Indian residents to Purchase the property abroad, in individual capacity.

5 Major Policy Changes- Contd. Real Estate Bill is in the pipe line. Changes in Companies Act, where Sale of Companies, is made slightly tight and regulated. India REIT s Act is also in advance stage of approval, and expected to be in acted by end this year.

6 ECONOMIC BAROMETER

7 Bombay Stock Exchange

8 Government Bond Yield Chart

9 Currency (INR) vs $ (USD)

10 GDP Growth Rate

11 Interest Rate

12 Statutory Liquidity and Cash Reserve Ratio Trends

13 Repo & Reverse Repo Rates

14 Comparable BSE SENSEX of Major Real Estate Companies in India

15 Comparable BSE Sensex of Major Banks in India

16 FDI in Real Estate FDI in India in real estate sector has reduce drastically from $ 2.0b in 2009 to only $200m in 2013 despite low exchange rate. Investments made during was about $20b, but only $ 8b could be exited by now.

17 REAL ESTATE MARKET IN INDIA

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19 Delhi NCR Mumbai Kolkata Chennai Bengaluru

20 Delhi Delhi NCR Real Estate Market

21 Capital Value Trends Residential Market

22 Demand / Supply of Residential units in Delhi NCR

23 Office Space Market in Delhi NCR

24 Office Space Market in Delhi NCR

25 Commercial/Office Space in DELHI NCR

26 Delhi Real Estate Market Commercial Market In Delhi NCR commercial space absorption increased by 22% as compared to last year, 70% of the space was leased in Gurgaon, 23% in NOIDA and the remaining 7% in Delhi. IT/ITeS companies were the major occupiers, contributing 50% of the total absorption, followed by Engineering and BFSI, together accounting for 25% of the total absorption MN SF total new office inventory space added in 2013, only 12% was located in Delhi and the remainder was evenly split between peripheral micro markets of NOIDA and Gurgaon. The current overall vacancy is 19%, which is marginally higher than that recorded at the same time in 2012 (18.5%).

27 Mumbai Real Estate Market Mumbai

28 Capital Value Trends Residential Market

29 Office Space Market in Mumbai

30 Office Space Market in Mumbai

31 Top 10 transactions of the year Office Space Market in Mumbai

32 Office Space Market in Mumbai Despite the uncertain economic conditions, absorption of office spaces in Mumbai rose by 4.4% y/y to 7 m sft in 2013, as against the 6.7m sft in As a result, vacancy fell to 22.9% in 2013 from 24% in Nearly 7.5 m sft of new supply was added to Mumbai s office stock in an increase of 8.8% y/y compared to the 18% growth in stock in The total current office stock in Mumbai stands at 91 million square feet. During ( ) period, office stock in Mumbai has risen by more than five times, which would naturally lower incremental growth. Towards the mid 2013, growth in stock of office space in Mumbai was still the fourth-highest among the major cities of the world.

33 Kolkata Real Estate Market Kolkata

34 Capital Value Trends Residential Market

35 Office Space Market- Kolkota

36 Office Space Market in Kolkata Vacancy Rate

37 Office Space Market in Kolkata

38 Kolkata Real Estate Market Commercial Market : About 0.5 mn sqft of new Grade A office supply was added to the city s office inventory. Most of this new supply was located in the PBD micro-market such as Sector - 5 Salt lake and Sonarpur. Capital values remained stable during the year with the exception of New Town Rajarhat, which recorded a decline of 12% in capital values YoY. Due to poor uptake of commercial stock, rental values declined in the range of 7-10% YoY in micro-markets like Ballygunge, Circular Road and Sector-5, however other micro-markets remained stable.

39 Chennai Real Estate Market Chennai

40 Capital Value Trends Residential Market

41 Residential Market

42 Chennai Real Estate Market

43 Commercial Market Chennai

44 Chennai - Top 10 transactions of the year

45 Chennai Real Estate Market Commercial Market Chennai office market witnessed a moderate demand in H1-2013), characterized by a fair increment in rental values since H While the initial months of H witnessed a restrained take-up of office space, it gained momentum during the H-2 thereby bringing the total absorption to approximately 1.7 m sqft, but still lower than 2012 as no surprise and reveals the cautiousness in the market.

46 Bangalore Real Estate Market Bangalore

47 Capital Value Trends Residential Market

48 Bangalore Residential Market

49 Office Space Market in Bangalore

50 Bangalore Real Estate Market

51 House Price Indices of Major Cities

52 NHB Residex

53 Challenges Ahead Stabilization of Government. Decision on Major Policies directly linked with Real Estate Market - Land Acquisition Bill - Real Estate Bill - Relaxation on FDI Rules, (mainly on size of the project and lock in period. - Approval REIT s policy. - License to New Banks.