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Real estate is a legal term that encompasses land along with
, improvement to land , such as buildings , fences ,
commercial buildings and other site improvements that are
fixed in location.(immovable)

Real estate business is a real business as no business is

possible without it.
1960 , sector was unorganized and perceived as risky and
speculative business.

—Developersmainly contractors and sub contractors were

funded from money lenders.

—Customers accumulated funds from their own savings and sale

of land and ornaments.

—Banks did not provide funds or mortgage finance.

—Developers were mainly contractors and sub contractors.

—HUDCO was set up in 1970 and HFI in 1977 to finance the

housing sector.

—In 1988, NHB , was set up to channel resource for finance,

national housing policy was later adopted by parliament in 94.
—During 1980- 1990 housing finance institutions emerged as
key lender to housing sector.

—Role of government was of regulator and facilitator.

—In 2002, government permitted 100% FDI.

—Rapid growth in real estate sector during this period.

—Urbanization, growing population , migration, youth population.

—Lower cost of credit , government encourage commercial banks to

provide loans at cheaper rate of interest.

—Higher levels of export.

—Favorable business and regulatory regime.

—Public private partnerships(PPP).

—Liberalization of Indian economy.

—Economy integrated with foreign players.

—during period of 2002-2007 Sector commanded 30 % y.o.y

—Sub prime crisis in USA largest investment bank Lehman
brothers in September 2008, affect of toxic assets spread all
around world, and caused credit squeeze, slowdown all around

—Credit crunch , job losses , uncertainty in global market , lack

of confidence , vanished the demand.
—Super powers suffered deep recession .

—Global growth almost zero.

—Indian GDP slowed by 3 %.

—Demand vanished , people went on saving mode.

—Fiscal and monetary efforts by government.

—Saving culture , conservatism and sentimental attachment saved
India from recession.

—Banking system also need to be given the credit .

also need to be given to honorable prime minister of India ,
Mr. manmohan Singh and finance minister Mr. P. Chidambaram.

—Even at time of global recession some real estate companies were

growing faster than before.
—Oversupply in premium housing and retail segment.
—Demand vanished due to uncertainty in jobs and business.
—Indiansectors loose on part of lack of confidence from part of customers , rather
—Developers have to re ²invent their business models.
developers used to hit HIG segment , now the main emphasis was laid on
EWS and LIG, as 99% demand lies here.
the government policies led the developers to do so , to fulfill growing housing
demand in country.
Contribution to GDP
around 6%.

Around 250 auxiliary

industries depends on it.

Real estate sector is high

FDI attraction sector.

Sector is 2nd largest

employment generator.
— IPO ¶ S by big real estate
— Oberoi
— Emmar Mgf
— Lodha developers.
International players
entering Indian market.

[ Ascendas
[ Nakheel group
[ JP morgan
[ Duetche bank
real estate sector was unorganized and dis ²segmented.
—mhe present market segments are-
1. Commercial office space.
2. Residential space.
3. Retail space.
4. Hospitality.
5. Special economy zones.
 Demand for office space
has been driven by influx
of multinational


 Relaxation of FDI

 Attraction from foreign

 Rapid urbanization.


 Growing working

 Decreasing household

 Main motto being

´affordable housingµ.
 Rising consumerism.

 Increasing purchasing

 Growth of organizing

 International players
entering offers a
competitive market.
 Growth in tourism.

 Medical tourism

events like
games .
—in union budget 2010-11 , finance minister made following
announcements ²
—Allocation of urban development to be increased by 75 %.
—RBI ( reserve bank of India ) has revised norms for urban co
operative banks for giving loans to housing and real estate
—Now urban bank can use up to 15% of their deposits to
provide housing , real estate loans , earlier it was not so.
—Growth of services and organized retail, contracting
households rising income levels , easily availability of home
loans are growth drivers .

—Changing attitude of developers shifting from HIG to LIG

and EWS where the actual demand lies , and ultimately filling
country·s requirement .

—Government plans to spend 350 billion dollars under 11th

plan in infrastructure.
—Development of tier 2 and tier 3 cities further add to
development of real estate sector.

—Development of special economic zones , not only

contributing to exports , promotion of industry, employment
and social welfare.

—On way of becoming third largest real estate market by 2020.