REAL ESTATE

March 2021
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Table of Contents

Executive Summary 3

Advantage India 4

Market Overview and Trends 6

Recent Trends and Strategies 14

Growth Drivers 16

Opportunities 25

Key Industry Contacts 28

Appendix 30

2
Executive summary

 In India, the real estate sector is the second-highest employment generator, India’s Real Estate Market (US$ billion)
after the agriculture sector.
 Real estate sector in India is expected to reach US$ 1 trillion by 2030. By 1500
2025, it will contribute 13% to the country’s GDP.
1000
 Rapid urbanisation bodes well for the sector. The number of Indians living in 1,000
urban areas is expected to reach 525 million by 2025. 500 650
 Construction is the third-largest sector in terms of FDI inflow. FDI in the 120
0
sector (including construction development & activities) stood at US$ 42.97
2017 2025F 2030F
billion between April 2000 and September 2020.
 Government of India’s ‘Housing for All’ initiative is expected to bring US$ 1.3 Urban Population in India (million)
trillion investment in the housing sector by 2025.
 India's Global Real Estate Transparency Index ranking improved by a notch 600 525…
460.24 470.72
to 34 in 2019 on the back of regulatory reforms, better market data and green 400
429 461
initiatives according to property consultant JLL.
200
 Home sales volume across eight major cities in India jumped by 2x to 61,593
units from October 2020 to December 2020, compared with 33,403 units in 0
2015 2018 2019 2020 2025F
the previous quarter, signifying healthy recovery post the strict lockdown
imposed in the second quarter due to the spread of COVID-19 in the country.
Cumulative FDI inflow between April 2000 and
 The residential sector is expected to grow significantly, with the central
government aiming to build 20 million affordable houses in urban areas
September 2020 (US$ billion)
30.00
across the country by 2022, under the ambitious Pradhan Mantri Awas
Yojana (PMAY) scheme of the Union Ministry of Housing and Urban Affairs. 20.00 25.75
Expected growth in the number of housing units in urban areas will increase 10.00 17.22
the demand for commercial and retail office space.
0.00
Construction Activities Construction Development

Notes: E - Estimated; F- Forecasted

Source: KPMG, World Bank, Census 2011, Credai-JLL report, United Nations World Urbanization Prospects 2018, CBRE, India’s Urban System: Sustainability and Imbalanced
Growth of Cities, Knight Frank

3
Advantage India

4
Advantage India

2. ROBUST DEMAND 3. ATTRACTIVE

 Demand for residential properties has surged due to OPPORTUNITIES
increased urbanisation and rising household  Growing requirement of space from
income. India is among the top 10 price appreciating sectors such as education, IT,
housing markets internationally. healthcare, e-commerce and logistics.
 About 10 million people migrate to cities every year.  Growing demand of energy efficient and
 Growing economy driving demand for commercial environment friendly architecture
and retail space.

1. INCREASING 4. POLICY SUPPORT

INVESTMENTS  The Government has allowed
FDI of up to 100% for townships
 Driven by increasing
and settlements development
transparency and returns,
there’s a surge in private projects.
investment in the sector.  Under the ‘Housing for All’
 Indian real estate attracted scheme, 20 million houses are to
U$ 5 billion institutional 2 3 be built by 2022, GST rate is
investments in 2020, brought down to 5%.
equivalent to 93% of  Under Union Budget 2021-22,
transactions recorded in the tax deduction up to Rs. 1.5 lakh
previous year. (US$ 2069.89) on interest on
 PE investments in the
Indian real estate sector
1 4 housing loan, and tax holiday for
affordable housing projects have
may bring an influx of $6
been extended until the end of
billion in 2021, registering a
30% y-o-y growth. fiscal 2021-22.

5
Market Overview

MARKET OVERVIEW

6
Segments in the Indian real estate sector
 Residential segment contributes ~80% of the real estate sector. Housing launches
were 86,139 units across the top eight Indian cities in the second half of 2020.
Residential space
 According to India Ratings and Research (Ind-Ra), the Indian real estate sector may
stage a sharp K-shaped recovery in FY22. However, the overall sales in FY22 could
still be ~14% below the FY20 levels.

 Few players with presence across India.

Commercial space
 Most of the activity is in the leasing segment.

 FDI in multi-brand retail to boost demand.

Real estate Retail space  Retail real estate and warehousing segment attracted private equity (PE) investments
sector of US$ 220 million and US$ 971 million, respectively, in 2020.

 Retail would add up more 39 million square feet of space by 2022.

 Hotel room supply in the country increased 5.4% y-o-y in FY19, totalling to 133,359
rooms at the end of FY19.
Hospitality space
 The sector is likely to attract an annual investment between US$ 0.5-0.6 billion during
2018-2022, with total investment reaching US$ 2.8 billion by 2022.

 As of January 31, 2021, India formally approved 425 SEZs, of which 265 were already
operational. Most special economic zones (SEZs) are in the IT/ BPM sector.
SEZs
 In March 2020, the Government approved proposals from TCS and DLF to set up
SEZs for IT sector in Haryana and Uttar Pradesh.

Notes: SEZ - Special Economic Zone. IT - Information Technology, BPM - Information Technology Enabled Services
Source: KPMG Cushman and Wakefield, CRISIL, JLL India, ANAROCK Property Consultants, Colliers Research, CBRE, SEZ India

7
Indian real estate is a large, growing market…

 Real estate sector in India is expected to reach US$ 1 trillion in Market size of real estate in India (US$ billion)
market size by 2030, up from US$ 120 billion in 2017. India’s real
estate market is estimated to grow at a CAGR of 19.5% during 2017- 1200
2028. The market is forecast to reach US$ 650 billion, representing
1000
13% of India’s GDP by 2025. 1000
800
 Increasing share of real estate in the GDP would be supported by 600
increasing industrial activity, improving income level and urbanisation. 650
400
180
 The Government launched 10 key policies for the real estate sector: 200 120

• Real Estate Regulatory Act (RERA) 0

2017 2020 2025F 2030F
• Benami Transactions Act
• Boost to affordable housing construction
• Interest subsidy to home buyers NHB India Housing Price Index*
• Change in arbitration norms
• Service tax exemption 114.00

113.40
113.04
• Dividend Distribution Tax (DDT) exemption 112.00

112.28
111.20
• Goods and Services Tax (GST) 110.00

110.18
• Demonetisation 108.00

108.52
107.14
• PR for foreign investors 106.00

104.00
Mar'19 Jun'19 Sept'19 Dec'19 Mar'20 Jun'20 Sept'20

Notes: CAGR - Compounded Annual Growth Rate, E - Estimated, F - Forecast, Information is as per latest data available, *average of indices of all cities
Source: KPMG, Report on Real Estate Sector in India - Corporate Catalyst India Pvt Ltd, CBRE, National Housing Bank

8
Demand for residential space expected to grow sharply

 A localised and fragmented market presents opportunity for Cumulative Housing Demand-Supply in Top 8 Cities
consolidation with only few large pan-India players like DLF.
(‘000 units) 2016-20
 More foreign players might enter the market as FDI norms
Scenario have eased.
 Furthermore, norms on land acquisitions is expected to be
relaxed.
717
 Rapid urbanisation.
HIG
 Growth in population.
351
Key  Rise in the number of nuclear families.
drivers  Easy availability of finance.
 Repatriation of NRIs and HNIs.
 Rise in disposable income. 1,457
 Housing sales reached 55,033 units in the fourth quarter of MIG Demand
2020 across eight major cities posting an 84% Q-o-Q surge
Supply
in the fourth quarter of 2020. 647
 NCR (National Capital Region) is expected to generate
maximum demand in MIG and HIG category followed by
Bengaluru.

Notable  Developers are now focussing on affordable and mid-range 1,982

categories to meet the huge demand.
trends LIG
 According to the Economic Times Housing Finance Summit,
about 3 houses are built per 1,000 people per year compared 25
with the required construction rate of five houses per 1,000
population. The current shortage of housing in urban areas is
estimated to be ~10 million units. An additional 25 million 0 500 1000 1500 2000 2500
units of affordable housing are required by 2030 to meet the
growth in the country’s urban population.
Notes: LIG - Low Income Group, MIG - Middle Income Group, HIG - High Income Group
Source : Cushman and Wakefield, Anarock Property Consultants

9
Metros driving demand for commercial space

 Few large developers with a pan-India presence Demand for Commercial Space in Top 8 cities
dominate the market.
(million sq. ft.)
 Operating model has shifted from sales to lease and
maintenance. 45
 By 2023, commercial space is expected to reach at 40
Scenario 39.30
50 msf mainly driven by sectors - IT-BPO, pharma, 35
engineering and manufacturing. 30 33.20 33.00
 The office space leasing activity is expected to pick 25 28 28 29
up in 2021 and is likely to be at par with the 10-year 20
average, i.e., 30-31 million sq. ft.
15
10
5
 Rapid growth in service sectors: IT/BPM, BFSI and
0
Telecom. 2015 2016 2017 2018 2019 2020
Key drivers  Rising demand from MNCs.
 Demand for office space in tier II cities.
City-wise Commercial Space Demand (million sq. ft.) 2020

14
 The office market in top eight cities recorded
12
transactions of 22.2 msf from July 2020 to 10 12.3
December 2020, whereas new completions were 8
recorded at 17.2 msf in the same period. 6
 Business activity is shifting from CBDs to SBDs and 4 5.9 6
2 4.6 4.5 1.4
Notable tier I to tier II cities. 3.7 0.9
0
trends  In terms of share of sectoral occupiers, Information
Pune

Ahemdabad
Chennai

Bengaluru
Hyderabad
NCR

Kolkata
Mumbai
Technology (IT/ITeS) sector dominated with a 41%
share in second half of 2020, followed by BSFI and
Manufacturing sectors with 16% each, while Other
Services and Co-working sectors recorded 17% and
10%, respectively.
Notes: MNC - Multinational Corporation, BFSI - Banking, Financial and Insurance Services, CBD - Central Business District, SBD - Special Business District, NCR - National Capital Region,
msf- million square feet
Source: Cushman and Wakefield, Knight Frank Research

10
Office market overview

 Office market has been driven mostly by growth in BPM/IT, BFSI, consulting and Net Absorption of Office Space (2020)
manufacturing industries. Moreover, many new companies are planning a foray into Indian (million sq. ft.)
market due to huge potential and relaxed FDI norms.
8
 Grade-A office space absorption is expected to cross 700 msf by 2022, with Delhi-NCR
contributing the most to this demand.
7 7.26
 In the first half of 2020, Mumbai experienced a substantial growth 36% in demand from
consulting firms over total office space leasing. 6.47
6
 In 2021, Bengaluru is expected to record huge deals of >100,000 sq. ft. and form a major
portion of projected leasing; and is expected to account for a 20-30% increase in
absorption, while the supply is expected to gradually increase 20-30% y-o-y. 5

 According to JLL India, in 2020, the net absorption of office space in the top seven cities
was 25.63 million sq. ft. 4
 In 2020, the manufacturing sector accounted for 24% of office space leasing at 5.7 million 3.83
square feet. SMEs and electronic component manufacturers leased the most between 3 3.27
Pune, Chennai and Delhi NCR, followed by auto sector leasing in Chennai, Ahmedabad
2.52
and Pune. The 3PL, e-commerce and retail segments accounted for 34%, 26% and 9% of 2
office space leases, respectively. 2.09

 COVID-19 pandemic has resulted into work from home (WFH) element, which impacted
1
the new space commitments in the short term. In 2020, new office space in the seven cities
was 36.34 million square feet, a decrease of 30% y-o-y. However, recovery of the office 0.19
0
leasing market is expected to start in early-2021.

Chennai
Mumbai
Bengaluru

Hyderabad
NCR

Pune

Kolkata
 Absorption of industrial and warehousing space is expected to grow by 83% to 47.7 million
square feet in 2021, driven by strong growth in the e-commerce and manufacturing as well
as growing demand in emerging Tier I and II cities, according to Savills India.

Notes: BPM - Information Technology Enabled Service. msf - million square feet
Source: Knight Frank, JLL India, Livemint, Colliers International, CBRE, JLL, Savills

11
Retail space likely to see strong growth

Number of Malls in India

 Currently, retail accounts for a small portion of the
Indian real estate market.
Scenario 300
 Organised retailers are few and the organised retail
space is mostly developed by residential/office
space developers.
250
253
246
 Booming consumerism in India. 232
 Organised retail sector is growing 25-30% annually. 219
200 212
 Entry of MNC retailers. 203
Key drivers
188
 India’s population below 30 years of age and having
exposure to global retail is expected to drive demand
for organised retail. 150

100
 Mumbai, NCR, Bengaluru and Kolkata witnessed
highest growth in retail real estate during 2019.
 Retail sector attracted US$ 1 billion in 2019.
Notable 50
 According to Anarock, a property consultant, India is
trends likely to have 100 new malls by 2022. Of this
number, 69 malls will be built in the top seven
metropolis and the remaining 31 malls will be in Tier 0
2 & 3 cities. 2012 2013 2014 2015 2016 2017 2018

Source: : Cushman and Wakefield, CBRE, JLL India, Real estate intelligence service (JLL), Anarock

12
Hospitality market to witness large incremental capacity

Branded Hotel Rooms Inventory in Major Indian Cities (‘000)

 NCR and Mumbai are by far the biggest hospitality
markets in India, followed by Bengaluru, Hyderabad
Scenario and Chennai. Bengaluru 12.7
17.1
 Besides hotels, the hospitality market comprises of
New Delhi 14.7
service apartments and convention centres. 16.0
Mumbai 13.7
15.9
Chennai 9.2
10.1
 A robust domestic tourism industry.
Goa 6.7
 The increasingly global nature of Indian businesses is 8.5
Key drivers boosting business travel.
Hyderabad 6.8
7.7
 Tax incentives for hotels and higher Floor Space Index
Gurugram 5.9
(FSI). 7.4
Pune 6.3
7.1
Jaipur 5.4
6.3
Kolkata 3.9
5.2
 Service apartments appear particularly attractive
Ahmedabad 3.4
within the hospitality space. 4.3
Notable
 Government initiatives to promote tourism in tier II Agra 2.3
trends 2.6
and tier III cities is generating significant demand for
hotels in such cities, especially budget hotels. Noida 1.5
2.0
- 5.0 10.0 15.0 20.0
FY18 FY23

Source: : Cushman and Wakefield, Hotelivate

13
Recent Trends and Strategies

14
Strategies adopted
1. Diversified portfolio 5. Superior execution
• Having a diverse portfolio of residential, • Outsourced support functions
• Focus on delivery capability
5
commercial and township developments.
• Companies have projects in various • Development of world class infrastructure
strategic geographic locations in order to
diversify risks. 1 • Rationalising costs

•
•
Focus on the growth of lease business.
Housing finance companies and private
4. Risk management in
equity (PE) companies have started land sourcing
focusing on affordable housing.
• Joint venture with landowners instead

2 4
of amassing land banks. For example
2. Backward integration - Oberoi Realty, a Mumbai based
• An architectural, structural and interior realty firm, adopted this strategy while
studio and a metal and glazing factory. entering the NCR region.
• Interiors, wood working factory, and • On July 23, 2020, Sunteck Realty

3
concrete block making plant. entered a joint development
agreement with landowners to
construct a housing project in the
3. Merger & Acquisition (M&A) Mumbai Metropolitan Region (MMR),
having a revenue potential of Rs.
• In September 2019, DLF sold over nine acres of land in New Gurugram to American Express for
5,000 crore (US$ 709.32 million) over
about Rs. 300 crore (US$ 42.92 million).
the next five-seven years.
• Raymond sold its 20 acres Thane land to Xander-backed VRSA for Rs. 700 crore (US$ 98 million).
• In January 2020, RMZ Corp. entered into a strategic and equal partnership with Mitsui Fudosan
(Asia) Pte Ltd. to expand its business footprint.
• Iconic RK Studios property, located in suburban Chembur, was acquired by Godrej Properties.
• In September 2020, RMZ Corp. sold 12.8 million square feet real estate assets to a fund managed by
the Brookfield Asset Management for Rs. 15,000 (US$ 2 billion).
• In October 2020, Australia’s REA Group Ltd. announced its agreement to acquire a controlling
interest in Elara Technologies Pte. Ltd., the owner of Housing.com, PropTiger.com and Makaan.com.
• In November 2020, Prestige Estates Projects Ltd. sold a large portfolio of office, retail and hotel
properties to Blackstone for Rs. 12,745 crore (US$ 1.7 billion).

15
Growth Drivers

GROWTH DRIVERS

16
Real estate being driven by policies and growing economy

1. Growth in tourism 6. Epidemological changes

1 6

2. Urbanisation 2 5 5. Easier financing

3 4
3. Growing economy 4. Policy support

Growth drivers

17
Economic growth along with growing urbanisation is
boosting real estate demand

Growth in Household Incomes in Indian Cities (2019) Population breakdown of India (million)

12% 1000
900
10% 909
800 880 893 900
10%
8% 9% 9% 700
8% 8% 8% 8%
600
6%
500 543
4% 400 461 483
429
300
2%
200
0% 100
Chennai
Mumbai

Hyderabad

Delhi NCR
Bengaluru
Kolkata

Pune

0
2015 2018 2020 2025F

Urban Rural

 The Indian economy has experienced robust growth in the past decade and is expected to be one of the fastest growing economies in the coming
years.
 India’s urban population is expected to reach 525 million by 2025, up from an estimated 463 million in 2020.
 Rising income and employment opportunities have led to more urbanisation and more affordability for real estate in cities.

Notes: E - Estimate, F - Forecast

Source: IMF World Economic Outlook Database, JLL, *United Nations World Urbanization Prospects 2018

18
Rising tourist numbers boosting the hospitality sector

Foreign Tourists Arrivals in India (million) India’s Foreign Exchange Earnings From Tourism (US$ billion)

CAGR 7.1% 35.0 CAGR 10.01%

12.0
30.0
10.0

30.0
10.9
25.0

10.6

27.7
10.2

27.01
8.0
8.8

20.0

22.9
6.0
15.0

2.5
4.0

6.15
10.0
2.0
5.0
0.0
0.0

2020 (Till
2016

2017

2018

2019

March)

2020 (Till
2016

2017

2018

2019

March)
 During 2019, foreign tourist arrivals (FTAs) in India stood at 10.9 million, achieving a growth rate of 3.20% y-o-y.
 India’s tourism and hospitality industry is anticipated to touch US$ 418.9 billion by 2022.
 During 2019, India earned US$ 30.0 billion in foreign exchange from tourism, recording a y-o-y growth of 4.80%. Foreign exchange earnings
(FEEs) from tourism in India grew at a CAGR of 8.96% during 2007-19.
 The growing inflow from tourists is expected to provide a fillip to the hospitality sector.
 Medical tourism sector in India is gaining momentum with a target of attracting 8 million medical tourists into the country by 2020.
 Hilton plans to add 18 hotels pan India by 2021, along with 15 operational hotels under its brands—Hampton, Hilton Garden Inn, Conrad, Hilton
Hotels & Resorts and DoubleTree by Hilton. On October 22, 2020, Hilton launched its first DoubleTree by Hilton brand in Jaipur, Rajasthan.
 In November 2020, Taj Group partnered with the real estate company Ambuja Neotia Group to launch three new hotels—two in Kolkata and one
in Patna.
 In November 2020, Accor, a leading hospitality group, to launch seven new properties in India by 2022.

Notes: CAGR is up to 2019, CY - Calendar Year

Source: Ministry of Tourism, News Articles

19
Government policies are helping the real estate sector
prosper… (1/3)

1
Ease in housing finance
• In order to boost affordable real estate, housing loans up to Rs. 3.5 million (US$ 54,306) in metro cities were included in priority sector lending by
the RBI in June 2019. Loans under priority sector lending are relatively cheaper. Housing loans account for more than half of retail loans.

2
Housing for economically weaker section
• On July 09, 2020, Union Cabinet approved the development of Affordable Rental Housing Complexes (AHRCs) for urban migrants and poor as a
sub-scheme under Pradhan Mantri Awas Yojana - Urban (PMAY-U).
• In October 2020, the Ministry of Housing and Urban Affairs (MoHUA) launched an affordable rental housing complex portal.

3
FDI
• The Government has allowed 100% FDI for townships and settlements development projects.
• Provision for reduction in minimum capitalisation for FDI investment from US$ 10 million to US$ 5 million to boost urbanisation.
• In January 2018, the Government allowed 100% FDI in single-brand retail trading and construction development without Government approvals.
• Indian real estate is expected to attract a substantial amount of FDI over the next two years, with US$ 8 billion capital infusion by FY22.

4
REITs
• Real Estate Investment Trusts (REITs) in non-residential segment will open channels for both commercial and infrastructure sector. In March
2019, Embassy Office Parks, India’s first REIT, went public.
• First REIT raised Rs. 4,750 crore (US$ 679.64 million) and was launched in early 2019 by global investment firm, Blackstone, and realty firm,
Embassy group.

Source: Government of India, News Articles

20
Government policies are helping the real estate sector
prosper… (2/3)

5
Land Acquisition Bill
• In December 2014, the Government passed an ordinance amending the Land Acquisition Bill.
• This ordinance is intended to speed up the process for industrial corridors, social infra, rural infra, housing for the poor and defence capabilities.

6
Govt-backed Stress Fund
• The Special Window for Completion of Construction of Affordable and Mid-Income Housing (SWAMIH I) supported housing projects have started
witnessing fresh sales and collection of dues from existing homebuyers, In November 2020, SBICAP Ventures Ltd. managed fund cleared
investments worth >Rs. 13,200 crore (US$ 1.78 billion) for 136 projects and has started deploying funds across 36 projects

7
Stamp Duty
• The Ministry of Housing and Urban Affairs has recommended all the states to consider reducing stamp duty of property transactions in a bid to
push real estate activity, generate more revenue and aid economic growth.
• National Real Estate Development Council – Maharashtra announced zero stamp duty on housing sales until December 31, 2020.

8
Tax Relief
• The Atmanirbhar Bharat 3.0 package announced by Finance Minister Ms. Nirmala Sitharaman in November 2020 included income tax relief
measures for real estate developers and homebuyers for primary purchase/sale of residential units of value (up to Rs. 2 crore (US$ 271,450.60)
from November 12, 2020 to June 30, 2021.
• Buyers have been allowed to purchase homes at 20% below the circle rate without attracting any tax penalties.

Source: Government of India, News Articles

21
Government policies are helping the real estate sector
prosper… (3/3)

9
Construction Premiums
• Construction premiums and levies in Maharashtra account for >30% of the total project cost.
• In a bid to boost the real estate sector amid the pandemic, construction premiums and levies payable by builders in Maharashtra are set to be
halved for one year until December 31, 2021.

10
J&K's New Land Law
 On October 27, 2020, the government announced the application of Real Estate (Regulation & Development) Act, 2016 in the union territory of
Jammu & Kashmir. This has paved the way for any Indian citizen to buy non-agricultural land and property, as opposed to the eligibility of only
local residents earlier.

Source: Government of India, News Articles

22
PE investments on the rise

PE/VC Investments in Indian Real Estate (US$ billion) Distribution of Institutional Investment in India (2014-19)

8.00
2.00%
7.00 3.00% Office
6.00 6.80 8.00%
Residential
5.00 10.00%
40.00%
4.00 Entity Level
4.06
3.00
Retail
2.00
1.00 Mixed-use

0.00 37.00%
Others
2019 2020

 RBI proposed to allow banks to invest in real estate investment trusts and infrastructure investment trusts, attracting more institutional investors to
such assets. Indian Banks, which are allowed to invest about 20% of their net-owned funds in equity-linked mutual funds, venture capital (VC)
funds and stocks, could invest in these trusts within this limit.
 Investments from private equity (PE) players and VC funds reached US$ 4.06 billion in 2020.
 Institutional investment into Indian real estate sector stood at US$ 712 million during fourth quarter of FY20.
 In November 2020, ESR India signed an agreement with the Government of Maharashtra to invest Rs. 4,310 crore (US$ 584.95 million) to
develop 11 industrial logistics parks around Mumbai and Pune.
 The Godrej Group has forayed into the financial services industry with Godrej Housing Finance (GHF), through which it hopes to build a long-term
and sustainable retail financial services business in India, aiming for a balance sheet of Rs. 10,000 crore (US$ 1.35 billion) in the next three years.
 In April 2021, HDFC Capital Advisors (HDFC Capital) partnered with Cerberus Capital Management (Cerberus) to create a platform that will focus
on high-yield opportunities in the residential real estate sector in India. The platform seeks to purchase inventory and provide last-mile funding for
under construction residential projects across the country.

Note: PE - Private Equity, VC - Venture Capital

Source: EY, JLL India, News Articles

23
SEZs emerging as an extension of real estate business

SEZ exports from India (US$ billion) City-Wise Distribution of SEZs in 2019

120
8.00%

113.0
100

100.30
Bengaluru
80 13.00% 30.00%
87.45

85.54
Hyderabad
81.67

75.84

78.07
76.01

71.38
60 NCR
Chennai
40 15.00%
Pune

20 16.00% Mumbai
15.00%
0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

 100% FDI permitted for developing townships within SEZs with residential areas, markets, playgrounds, clubs, recreation centres, etc.

 Exports from SEZs reached Rs. 7.96 lakh crore (US$ 113.0 billion) in FY20 and grew ~13.6% from Rs. 7.1 lakh crore (US$ 100.3 billion) in FY19.

 In March 2020, proposals from TCS and DLF to set up SEZs for IT sector in Haryana and Uttar Pradesh was approved by the Government.

 Industry players, including realtors and property analysts, are rooting for the creation of "Special Residential Zones" (SRZs) along the lines of
SEZs.

Source: Ministry of Commerce and Industry, SEZ website

24
Opportunities

OPPORTUNITIES

25
Niche sectors expected to provide growth opportunities

1. Education 6. Hotels
 FTAs in India is expected to reach 15.3 million
 The rising young population of India is
by 2025, which is expected to lead to an
expected to drive this space.
increase in demand for hotels.

 Spiritual tourism is one of the biggest untapped

markets for domestic travel; nearly 60% of
1 6 domestic tourism in India is religion-based.
2. Healthcare
 The healthcare market is expected
to reach US$ 372 billion by 2022.
5. Service apartments
 Growth in the number of tourists
 India needs to add 2 million hospital
beds to meet the global average of
2.6 for every 1,000 people.
2 5 has resulted in demand for
service apartments.

 This demand is likely to grow

and presents opportunity for the
unorganised sector.
3. Senior citizen housing
 Emergence of nuclear families and 3 4 4. Smaller office spaces
growing urbanisation have given rise to
several townships that are developed  As work from home and office has become
to take care of the elderly. the new normal, many companies are now
shifting to smaller workspaces.
 The segment in India can reach US$
7.7 billion in market size by 2030  This transition is now helping revive the real
according to a study by the Ministry of estate economy that has come to a standstill
Commerce and Industry. in the last six months due to COVID-19.

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Top cities to contribute to growth

Ahmedabad  Upcoming office space likely to boost hospitality segment.

Bengaluru  Corporate clients expected to provide steady growth to room demand.

 Emerging as promising commercial destination with Chennai-Bengaluru Industrial Corridor - likely to witness strong
Chennai
demand.

Hyderabad  Room demand is expected to be driven by commercial and office space projects in the city.

 Projects like Light Rail Transport System, Monorail, Eco-Park, and Airport expansion are likely to boost travel,
Kolkata
which will result in increase in demand for the hotel industry.

 Improved infrastructure, new airport terminal and upcoming airport in Navi Mumbai is expected to drive hotel
Mumbai
industry’s growth.

 Higher floor space index and inclusion of hotel projects in infra lending lists provide a positive outlook for the hotel
NCR
market in NCR.

 IT parks are attracting global players and increasing traffic. New business units are likely to increase business
Pune
conferences and events, which in turn will boost the demand for hotels.

 According to Knight Frank report, Delhi was ranked 27th, while Mumbai and Bengaluru were placed at the 33rd and 34th positions, respectively, in a
global index that measures annual price appreciation of luxury residential properties from July 2020 to September 2020 (the third quarter).
Source: Cushman and Wakefield, Knight Frank

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Key Industry Contacts

28
Key industry contacts

Agency Contact Information

National Secretariat, 703, Ansal Bhawan,

16, Kasturba Gandhi Marg, New Delhi - 110 001
The Confederation of Real Estate Tel: (011) 43126262/43126200
Developers’ Associations of India (CREDAI) Fax: 91 11 43126211
E-mail: [email protected]
Website: http://www.credaincr.org/
G-1/G-20, Commerce Centre, J. Dadajee Road,
Tardeo, Mumbai - 400034
Tel: 91 22 23514134, 23514802, 23520507
Builders' Association of India (BAI)
Fax: 91 22 23521328
E-mail: [email protected], [email protected]
Website: www.baionline.in

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Appendix

30
Glossary

• BFSI: Banking, Financial Services and Insurance

• CAGR: Compound Annual Growth Rate
• CBD: Central Business District
• FDI: Foreign Direct Investment
• FSI: Floor Space Index
• HNI: High Net-worth Individual
• GOI: Government of India
• Rs.: Indian Rupee
• IT/BPM: Information Technology/Information Technology enabled Services
• MNC: Multinational Corporation
• NRI: Non Resident Indian
• SBD: Special Business District
• SEZ: Special Economic Zone
• US$ : US Dollar
• Wherever applicable, numbers have been rounded off to the nearest whole
number

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Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 72.59 2021* 73.69

Note: As of February 2021

Source: Reserve Bank of India, Average for the year

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