Scribd
Upload
306 views13 pages

Real Estate: Nishant Kumar PGDM 09 Jiml

The document discusses trends in the Indian real estate sector. It notes that the current size of the Indian real estate market is USD 16 billion and is expected to grow at 30% CAGR to reach USD 50 billion by 2010. There is strong demand for quality real estate across all segments due to factors like growth of the middle class, population growth, expansion of the services sector, and rising foreign investment. The document also provides a forecast of real estate demand in India from fiscal years 1 to 10 using a regression model based on income, price, interest rates, and GDP growth. It analyzes DLF, the largest real estate developer in India, discussing its financials, business mix, strengths, and risks.

Uploaded by

pankaj09128
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
306 views13 pages

Real Estate: Nishant Kumar PGDM 09 Jiml

The document discusses trends in the Indian real estate sector. It notes that the current size of the Indian real estate market is USD 16 billion and is expected to grow at 30% CAGR to reach USD 50 billion by 2010. There is strong demand for quality real estate across all segments due to factors like growth of the middle class, population growth, expansion of the services sector, and rising foreign investment. The document also provides a forecast of real estate demand in India from fiscal years 1 to 10 using a regression model based on income, price, interest rates, and GDP growth. It analyzes DLF, the largest real estate developer in India, discussing its financials, business mix, strengths, and risks.

Uploaded by

pankaj09128
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 13

REAL ESTATE

Nishant kumar
pgdm 09
jiml
• Size of Indian Real Estate is currently USD 16 billion.
• Industry estimates indicate that the sector will
– Grow at CAGR of 30%
– To reach USD 50 billion by 2010
• Demand for quality real estate in India is seeing unprecedented
growth-demand supply gap exists across all segments of realty.

…Tremendous opportunity for real estate development across India.


Trends in Real Estate
• Growth of India's middle class creating demand for housing.
• Strong demographic impetus: India has the second largest population in
the world and the growth rate of population is still rapid.
• High growth in service sector (IT/ITES) leading to demand for commercial
space.
• Rising FDI levels has increased commercial space requirements by foreign
firms.
• Expansion of organized retail sector.
• Growth in retain trade and tourism industry due to growth in Organised
retain and hotel industry
• Development spreading to Tier II and Tier III cities.
• Easy availability of finance.
• Alternative/Innovative financing options
DEMAND FORECASTING FOR REAL ESTATE SECTOR

REGRESSION LINE Y = a + B1 I + B2P + B3R + B4G


Y = 1407.8 + 45.9(I) + 0.1 (P) + (-)17.3 (R) + (-)1.26 (G)

FY Demand in mn sq ft Income in lacs Price Per sqft Int_rate GDP at FC Estimated Demand

1 1382 2.25 1200 13.25 4.4 1383.45

2 1423 2.5 1300 12 5.8 1423.64

3 1466 2.75 1400 11 3.8 1463.80

4 1510 3.25 1500 10 8.5 1506.99

5 1555 3.75 1800 10 7.5 1557.89

6 1602 4.3 2250 11 9 1604.02

7 1650 5.15 2900 14 9.4 1648.56

8   5.65 3300 12.5 9 1733.51

9   6.15 3600 12.5 9 1783.15

10   6.75 4000 12.5 9 1846.28

SOURCES : ICICI, E&Y, DEUTSHE BANK, NHB, FICCI………....


Demand Forecasting

2000

1800
Fin_Year
Demand in Sq Ft

1600
Estimated Demand
1400
Actual Demand
1200

1000
1 2 3 4 5 6 7 8 9 10
Financial Year
D
L
F
• The largest real estate development company in India

• In existence since 1946

• Completed 224mn sq ft of development

• Focus area – NCR (Delhi and Gurgaon)

• Responsible for developing the Satellite town ship in Gurgaon

• Current Land Base of 10,255 acres of land bank


DLF- Financials
Particulars FY 05 FY 06 FY 07

Income from Operations in Cr Rs. 608 1154 2615

PAT in Rs. Cr. 88 193 1944

Net Profit Margins % 14.5 16.7 74.2

ROE % 11.8 22.7 78.7

ROCE % 8.9 15.5 30

EPS % 0.6 1.3 12.7

*Source IndiaInfoline      
DLF BUSINESS MIX
• Brand Name and Reputation
• Extensive Land Reserves
• Scale of Operations • Regional concentration
• Dependency on DAL
• Strategic Locations
• Experienced and Dedicated
Management

• Large demand-supply gap in


affordable residential
accommodation
• Political risks. • Availability of loans at low interest
• Macroeconomic Factors rates, tax incentives and a growing
• Execution risk middle class with higher savings
• Housing
• Increasing demand for commercial
space
• Office space for IT/ITeS
THANK
YO
U

You might also like