Real estate-ppt

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<ul><li> 1. Presented By:Gunjan MasandRitul JainSaurab VatsShanky SinghalShubhomita SenguptaShweta Datta</li></ul> <p> 2. What relevance does Real Estate And construction holdin our economy? Why has infrastructure getting the prime focus in therecent budget? What has actually changed the face of Realty and RealEstate? Who are the names behind this change? 3. The strong fundamentals of the Indian economy are having afavorable impact on all asset classes of Indian real estate viz.housing, commercial office space and retail and hospitality. In recent years, the growth has spread out to tier-II and IIIcities as well. High growth in services as well as manufacturing sector hasresulted in high demand for commercial and industrial realestate. Further the economic growth has trickled down to the largeIndian middle class increasing affordability and affluence.Improving living standards are driving the demand for betterquality housing and urban infrastructure. 4. Drivers for Growth ofReal Estate &amp;Construction 5. RisingTourismRise OfRealDecline ofMiddleEstate Joint Families Class EasyAvailabilityof Finance 6. Fiscal PolicyRealStrongRising FDI EstateDemographics Rise of MiddleClass 7. First Time BuyersMedicalRealInternationalTourism Estate TourismDevelopment of newStream of Business 8. OBJECTIVESGeneration of Promotion of exports additional economic of goods and services.activities. Promotion of Creation ofDevelopment of investments fromemploymentinfrastructure facilitiesdomestic and foreign opportunities. in the country. sources. 9. Range ofThere has been a Government drasticbenefits &amp; curtailment in Liberalization ofReforms in theincentives restrictiveFDI rules and theIntegrated includingpolicies such asemergence of Township Policy. residential taxthe Urban Landreal estate funds.breaks and theCeiling andSpecialRegulation Act. Economic Zones. 10. DLF Group AnsalsParsavnath Developers Unitech Group K. Raheja 11. Founded in 1946 DLF Group is one of the biggest real estate giants Built many high-quality buildings across the country,specifically in Gurgaon Tied up with Hilton Group to build whopping 100 hotels inIndia over the next few years. In current expansion plans, DLF has over 425 million sq. ft. ofdevelopment across its businesses, including developed, on-going and planned projects. Spread over 32 cities, mostly in metros and key urban areasacross India 12. Founded by Lala Chiranji Lal Ansal By far most dominant activity of Ansals has been Real EstatePromotion &amp; Development company has several landmark high-rise commercial buildinglike Statesman House, Ambadeep, Antriksh Bhawan, TolstoyHouse, Indra Prakash, Navrang House and Ansal Bhawan Ansals have also completed several residential buildings likeGauri Sadan, Upasana at Hailey Road &amp; Dhawan Deep atJantar Mantar road, all in the heart of New Delhi at ConnaughtPlace. 13. There is the most prestigious Ansal Plaza Shopping Mallassociated with its work Also it has made elite townships, Sushant Lok and PalamVihar in Gurgaon and several other places all over the country. 14. It was incorporated on July 24, 1990 under the CompaniesAct, 1956 as Parsvnath Developers Limited.With more than two decades of experience in its repertoire,the group has already stamped its presence already inseventeen states and going Pan India. It has made various developments in areas like GURGAON,Noida, South Delhi. 15. Plans to invest US$ 720 million in building hotels in thecountry Its partner for this venture is Marriott International. Carved a niche for itself in India with its sprawling propertiesand projects in Bangalore, Gurgaon, Noida, Greater Noida andKolkata Unitech Group took over projects in International areas as well. Actively involved in construction projects of powerplants, expressways, highways, transmissionlines, classrooms, amusement parks. 16. Radisson Hotel, New Delhi has won accolades for itswonderful infrastructure, astounding interiors, ideal locationand extra ordinary facilities for the distinguished customers. Rohini Amusement Park is also a creation of Unitech Group. The commercial complexes like Global Business Park,Signature Towers, Unitech Business Park and Unitech TradeCenter and the launch of Millennium Plaza &amp; Infocenter inGurgaon have made Unitech Builder earn a good reputation inthe industry. 17. DLF is the market leader in this sector with net profitof 1547 cr. It was way lower than its last year profit by morethan 1000 cr. It was well supported by the timely launch of IPL. The share of this co. touched the all time high of1227 in dec. 2007 which was just 6 months after itsissue and now trading at 337. 18. Their profit declined by 81.24% in the last financialyear over the last year. This is one of the badly hit company by the economicslowdown. 569 is the all time high of this company in 2006 andnow trading at just 10% of its all time high. 19. Bankruptcy OfInvestment Banks andCrash of US Economy The Housing Bubble BurstInvestment inReal Estate byPE Firms 20. IT Infrastructure Temples of Modern IndiaTownshipsProgramming HousesGreen Buildings 21. Skill Shortage.Non Availability of Statistics. Overvaluation of Property.Highly Fragmented. Lack of Transparency. 22. Bricks Prices Increase by 30-35 %Labour Rates High InterestEscalated toRates 5-10 %CONSTRUCTION COST 23. Rising PricesPARSAVNATHUNITECHDLFDecreasing Demand 24. IMPACT OF RECESSION ON REAL ESTATE 25. IncompletionLess demand Cash of previous Bad Debts. in allstarvation.projects.segments. 26. Launched Payment ofTerminatedaffordable Sale of Costshort termprojects with housing properties reductiondebt by long project. for liquidity through tight raising long gestationpreservation. cash flow.term debt. period. 27. QIP issuance to reduce debt. Reduced promotersstake from 64% to 51%.Increased confidencewith customers on project delivery. Major Strategic restructuring. 28. Key Focus Areas BeforeNow1. Residential SegmentPrimarily targetMore focus on mid andluxury/upper middle affordable housingincome housing segmentsegment.2. Assets and Land bank Buy predominantly Sell assets selectively andagricultural land and build acquire land only forland bank for projectsmid/low income housingacross all segments.projects.3. Debt Short Term maturities.Restructured to longermaturities.Higher proportion ofCheaper Collateralizedexpensive unsecured loans.loans.Increasing debt with more Reduced leverage.projects. 29. Overall Impact considered to be marginally positive. Infrastructure investment to be raised over 9% ofGDP. Funding pressure on construction companies to beeased by PPP. PPP infrastructure projects to be refinanced upto 60%through IIFCL. Rs 39.7 billion allocated for rural housing schemes. Focus on providing housing to people of economicweaker section &amp; lower income group. 30. Close to $7 billion to $8 billion of venture capitalexpected to flow into Indian real estate market. A significant increase in project execution throughPublic- Private-Partnerships. More demand for office and industrial space. Current levels of investments in infrastructure are notsufficient to bridge the gap between demand andsupply. 31. THANK YOU </p>

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