Real Estate


Real Estate sector has consummated stratospheric investments and is ingrained by capital resources and substantial levels of financing are indispensable and in case of evaporation of credit facilities the industry will peril in vulnerability.

The demand for housing sector in India will remain strong despite slowdown in the global economy but the sector will not witness the kind of price appreciation it has seen in the last couple of years.

Real estate builders are targeting to the mid income residential property which makes a lot of investment sense and market has reacted very assertive.

It is acutely observable that transparency will be a high priority, particularly earnings and cash flows and a continued push to develop assiduous funds from operation type measures.

Real estate stocks overall have been volatile than the equity markets, possibly because of greater bubbles in real estate pricing than in other asset category.

IPO and M&A will gain momentum in this industry as equity markets continue to strengthen but not at the levels as formerly contemplated.

There is a Real Estate business opportunity of INR 100,00,000 crores about US$ 2,5 trillion in India which is likely to grow at an annual rate of 15% during the next 20 years much faster than the growth of the Indian economy.

Real Estate investments in India will be wrapped by affordable housing which will be a key factor in driving this sector and we have already started working on progressive solutions in this area for effective and customised implementation of projects and further growth in the infrastructure sector is also expected to accelerate real estate activities in commercial as well as residential segments.

As many as half a billion Indians would need new homes in the country's various cities over the next decade and the country's population is slated to grow to 1,7 billion by 2050 and rapid urbanization will add nearly 900 million people to Indian cities. City capacity will need to grow nearly 400 percent in less than 50 years. This is the scale of urbanization and urban infrastructure needs India has to contend with in the face of grossly inadequate urban infrastructure to meet the demands of the existing urban population. There is insurmountable pressure on civic infrastructure systems such as water supply, sewerage, drainage and solid waste management.

We expect a greater degree of consolidation in Real estate sector and potential experienced acquirers will spur investment in existing structural impediments.