...Financing Residential property The country’s mortgage practices are based on promissory notes. In this case, real estate developers give a written promise to repay their loans and as a result, they receive funding from financial institutions. This is guided by the Negotiable Instruments Act, 1881 in its Section 4. Both domestic and foreign investors in India have the qualifications that they must meet in order to receive loans. In general terms, one is required to be over 21 years of age. For foreigners, they should not be over 60 years (Palande et al. 41). Other requirements depend on individual financial institutions. There are no specified mortgage rates. For instance, the rates depend on the financial institutions and the policies that they have in place. The rates for women, for instance, are lower than that of men. However, the rates range between 10 % and 11 %. The rates for foreign investors are also higher when compared to the domestic borrowers. Essentially, the primary market is concerned with raising fresh capital in form of debentures and shares. In India, this market is crucial as it accelerates economic and industrial development. Secondary market, on the other hand, refers to the market where the securities that were issued previously are bought and sold. This can only be achieved through stock exchange mediums. It creates liquidity in securities. India’s mortgage originators and investors are the loan providers who mostly involve themselves in the insurance...
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...What is your take on the recent trend of 'million sq.ft. malls' where every second developer wants to make one of the biggest malls in India? Do you support this trend? I support this unprecedented wave of million sq ft mall as with multiple demands on limited time, shoppers carefully choreograph their shopping trips. Mn sq ft size and prominence means that, for good or ill, these malls have a significant impact on a place and its character There is growing acceptance that as long as Big malls are well designed ,made, leased , and suitably located, they can accelerate retail growth in our country In broader perspective Million sq ft malls are signs of growing economic development and prosperity and the desire of the investor and builders to invest in these mega projects -- which means more choice for retailers , shoppers and increasing employment opportunities for catchment population. A large Mall is an indicator that a Industry is moving toward the future. Large malls require plenty of investment, more time and labor to construct , lease and operate but they also have long- and short term advantage . How sustainable will this trend be considering the economic condition of the country? Sustaining a successful retail development in India requires a high level of expertise, proactive management, and innovation. In the near term, the robust consumer demand will mask the lack of experience of these new developers. Over the longer term, however, it will be important...
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...Physical goods like soap Airlines services Tourism packages (experience) Properties like shopping mall A product can be anything Organisatin ( cancer foundation) Nations ( thailand) Places like Hyderabad, Gujarat. A PRODUCT CAN BE ANYTHING : In general, the product is defined as a "thing produced by labor or effort” .or the "result of an act or a process" and stems from the verb produce, from the Latin prōdūce(re) '(to) lead or bring forth'. Since 1575, the word "product" has referred to anything produced. Since 1695, the word has referred to "thing or things produced". In ECONOMICS and COMMERCE, products belong to a broader category of GOODS. The economic meaning of product was first used by political economist Adam Smith. * In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. * In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market. * In project management, products are the formal definition of the project deliverables that make up or contribute to delivering the objectives of the project. * In insurance, the policies are considered products offered for sale by the insurancecompany that created...
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...Question 2: L'objectif étant d'opter pour le pays où la CADIM peut investir pour le long terme, la firme adopte une méthode très rationnelle pour l'évaluation de l'attractivité du pays tout en pesant le risque inhérent. La méthode est basée sur l'examen des agrégats économiques, la stabilité de la monnaie locale, la démographie, les habitudes de consommation de la population et les besoins du marché de l'immobilier local dans l'optique de déterminer si l'attractivité et le potentiel du retour sur investissement du pays compensaient les risques qu'il comporte. Cette approche est très rationnelle dans la mesure ou elle considère des données mesurables et permet de comparer les pays sur la même base. Les résultats de l'évaluation seront cohérents peu importe l'évaluateur, ce qui ne laisse pas place à la subjectivité. Toutefois, il se trouve que cette approche est incomplète et ignore des aspects, autres qu’économiques ou démographiques, et qui sont tout aussi importants à la prise de décision d'investissement. Tout d'abord, les infrastructures doivent être regardées dans le cadre de l'examen de l'attractivité du pays. Par exemple, L'analyse de l'infrastructure de l'Inde donne qu'elle est vieillissante et ne peut composer avec la croissance économique rapide du pays; ce qui pourrait être à l'origine de coûts cachés pour la CADIM. La Culture est un autre aspect et qui n'est d'ailleurs pas des moindres. La distance culturelle, définie par Brouthers (2002) comme étant «la différence...
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...Key risks for Investment in India * On the quality parameter of properties, India was lacking across major estate types. * Do not have financially strong infrastructure for building new properties and supporting new investments * Political risk in involved in Indian investments as it is difficult to come to any decision in the coalition government and sometimes it leads to much delay in the projects. * On Foreign exchange currency risk, Indian currency is more volatile and thus devaluation can lead to greater loses. * Indian Bond markets are not fully developed. * Investments in property and Infrastructure sectors are less risky than as compared to other sectors. * There are restrictions on investments in Kashmir, as it is military affected area. * Risk due to terrorism can decrease investor’s confidence. Similarly Maoists activities are and obstacles for investments certain regions of India. * There is legislation risk involved in India. As it has been the case with Vodafone deal where Indian government came with retrospective tax proposal to dole out tax from Vodafone deal. * Monetary policies keep on changing in India on regular basis. Key risks for Investments in China * Like India, estate types(across all major), China lacks on quality aspect of properties. * China is riskier on political aspect. Communist government policies fears a bigger threat for Investment in China and all the types of protests are simply tackled and...
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...Indiabulls Real Estate Ltd. “Focus is the single most important virtue that will lead us to our goals.” Sameer Gehlaut, Chairman, Indiabulls Real Estate Ltd (2007) If the essence of the Indiabulls story were to be communicated in one word, the word would be “focus”. Indiabulls began its journey as an online brokerage start-up in the year 2000, and within a span of mere 10 years it has become India’s largest retail brokerage firm, and one of the largest non-banking financial institutions in India. The group has achieved unparalleled growth – successfully venturing into real estate business, and power sector as well. Incorporated as the real estate arm of Indiabulls Financial Services Ltd (IBFSL), and demerged in 2006, Indiabulls Real Estate Ltd (IREL) has been involved in project development and construction, project management, investment advisory and other allied services in the real estate space. Indiabulls Power, incorporated in 2007 as a 100% owned of subsidiary of IREL, was also soon demerged keeping in line IBREL’s strategy of demerging its non-core businesses in order to remain focused. One rationale behind the step was that all companies need to be independent in order to attain focus and to ensure that one balance sheet does not, in any manner, affect the other. The second reason was that the firm did not want to expose their real estate shareholders to project execution risks of the power sector. The third rationale was that power business would eventually be...
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...Marketing plan on real estate company ‘UNITECH’ | Module – GMSI 579 | MODULE LEADER: MR.ROHIT SINGH | | GROUP MEMBERS:Ankur GuptaRuchika AgrawalRuhi SharmaSandeep SinghShreya Jindal | | | | EXECUTIVE SUMMARY: In any business environment where there is cut throat competition and where number of organisation are chasing the same dollars, volunteers and business sponsors, to stand out among the crowd is critical to success. UNITECH Builder is one of the largest real estate Developer in India with around US$ 5 bn market capitalization. Turning many barren landscapes into landmarks UNITECH has an experience of 20 years in real estate development. It comes under the top 50 real estate companies in the world and boasts development such as South City, Nirvana Country, Cascade, The Close and many more remarkable developments are there. Reliance and commitment is the cornerstone of Unitech’s corporate philosophy and combined with an exceptional insight that how people aspire to live. The first real estate company in India is Unitech which has achieved the ISO 9001-2000 certification for planning, Marketing and Construction of real estate in the National Capital Region. Unitech is committed to develop energy efficient green buildings and is also a registered member of the Indian Green Building Council. A great experience in developing prestigious projects across India an Unraveled expertise makes the Untiech the niche of conceptualizing and delivering world class...
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...Would Housing be a Dream in the Dream City of India? Ref. No.: ME0013 Would Housing be a Dream in the Dream City of India? Mumbai, the financial capital of India, is one of the most expensive places to rent or buy a house. Buying a new house in Mumbai is beyond the reach of middle income group. Renting a flat in affluent neighbourhoods like Bandra, Juhu, Worli, Santacruz and Khar pinches the purse by around INR 3,000 per sq.ft./month. Both commercial and residential property prices in Mumbai have been on a steady rise. Mumbai has witnessed very high rentals especially since 2006. Mumbai turned to be one of the most expensive cities in the world to buy or rent a condominium unit in 2007 (Exhibit I). Exhibit I City-centre Condo Prices (in US$) London New York Moscow Hong Kong Tokyo Singapore Mumbai Shanghai Bangkok Beijing New Delhi Manila Jakarta Bangalore Phonom Penh To buy (per sq. m.) To rent (per month) 0 5,000 10,000 15,000 20,000 25,000 Source: Cruz Christian Prince, “Mumbai housing is the priciest in the developing world”, http://www.globalpropertyguide.com/ investment-analysis/Mumbai-housing-is-the-priciest-in-the-developing-world, June 25th 2007 This case study was written by Hepsi Swarna under the guidance of Akshaya Kumar Jena, IBSCDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published...
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...ANALYSIS OF REAL ESTATE SECTOR IN INDIA REPORT SUBMITTED TO Dr. Dennis Raj Kumar Submitted by (GROUP-9) Lavanya Sriharshini Vinod Varun Ashok P Manju harsha Pramit CONTENTS CHAPTER NO. | CHAPTER NAME | PAGE NO. | | ABSTRACT | 3 | 1 | INTRODUCTION | 4 | 2 | MARKET STRUCTURE | 6 | 3 | ANALYSIS OF INDIAN REAL ESTATE IN HOUSING SECTOR | 11 | 4 | PRICING STRATEGIES | 16 | 5 | ADVERTISING STRATEGIES | 19 | 6 | FINANCIAL ANALYSIS OF INDIAN REAL ESTATE COMPANIES | 21 | 7 | FUTURE OUTLOOK OF REAL ESTATE | 32 | | CONCLUSION | 35 | | REFERENCES | 36 | ABSTRACT EXECUTIVE SUMMARY: Real estate sector in India is assumed greater heights with the labor migration, liberalization of economy which led to raise for commercial and housing space.2012 was very sluggish year in terms of growth where GDP contribution of real estate declined from 10.6% to 6.5% due to raise in input cost, high lending rates which impacted sales as a result of inflation. Real estate sector is described as cyclic moments in terms of price over a period of time which caused fluctuations in commercial and residential markets. This resulted in change in economic policies of Indian market environment. The change in macro-economic factors such as GDP, employment rate, population growth, House hold disposal income, stock market values, Price to income ratio, Net rental yield, Household debt service ratio, interest rate / mortgage rate, demand supply...
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...STRATEGIC ANALYSIS OF DLF DLF INDIA PRIVATE LIMITED DLF INDIA PRIVATE LIMITED INTRODUCTION: DLF Limited (Delhi Land & Finance) is the largest commercial real estate developer in India. It was founded by Raghuvendra Singh in 1946 and is based in New Delhi, India. The company operates through three reportable segments, namely, residential, commercial, and retail. It is associated with the development of residential, commercial and retail properties. The company caters to three segments of the residential market - Super Luxury, Luxury and Mid-Income. The Annuity business of the company comprises mainly of rental businesses of offices and retail. The company is headed by Indian billionaire Kushal Pal Singh. Kushal Pal Singh, according to the Forbes listing of richest billionaires in 2009, was the 98th richest man in the world and the world's richest property developer. The company's US$ 2 billion IPO in July, 2007 was India's biggest IPO in history. In its first quarter results for the period ending 30 June 2007, the company reported a turnover of Rs. 3,120.98 Crore and profits after taxes of Rs. 1,515.48 Crore. VISION MISSION AND VALUES DLF Vision To contribute significantly to building the new India and become the world’s most valuable real estate company. DLF Mission To build world-class real-estate concepts across six business lines with the highest standards of professionalism, ethics, quality and customer service. DLF Values Sustained efforts to...
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...industry to transform strategy into reality. We offer our clients high impact advisory services throughout the business life cycle from ideation & inception to growth, maturity and transition. We make change happen. The group consists of two companies Merryland Real Estate and Consultants Pvt. Ltd. and Merryland Solicitors and Legal Consultants Pvt. Ltd. which cover the following service lines: 1. Energy Advisory Services 2. Real Estate Advisory Services 3. Business and Financial Advisory Services 4. Corporate Secretarial Services 5. Legal Advisory Services Headquartered in Jaipur, Rajasthan (India), we also have representative offices in Bahrain, Dubai, Delhi and Mumbai. Our founders are all senior professionals having advanced degree in law, electrical engineering, computer science, management, finance and political science. Our consultants and affiliates include retired senior government officers and bureaucrats, seasoned finance professionals, lawyers of High Court and Supreme Court and experienced industry leaders. Delivering Service Excellence Merryland Real Estate and Consultants Pvt. Ltd. and Merryland Solicitors and Legal Consultants Pvt. Ltd. F-68, Vinay Path, Kantichandra Road, Banipark, Jaipur, Rajasthan, India, Pin – 302016 Tel: +91 141-2201515, 141-4019333 Fax : + 91 141-419333 www.merrylandconsultants.com Experts at work for you EN E R G Y AD VIS O RY GIVE POWER TO YOUR BUSINESS Market Assessment ▪ Opportunity analysis for renewable and non-renewable energy...
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...Introduction 4 The Real Estate Sector in India 4 A Brief about DLF: 5 Demand and Supply Scenario 6 Reasons for growth in Real Estate Sector: 9 Demand Side: 10 Supply Side: 11 Production and Cost Structure 12 Market Structure and Player’s Strategy 14 STRATEGY FOLLOWED (Player Considered: DLF): 15 Observations and Analysis 18 References 20 * Objective The sector chosen for our project is Real Estate Industry. The objective of our project is to deeply analyze the Real Estate Industry in India. Our Analysis includes Demand and Supply in the real estate market, Production and Cost analysis, Consumer behavior effect on demand and costs. We have further analyzed the Market structure of Real Estate Industry and the different strategies about by different players. During our Analysis we have taken DLF infrastructure as an illustration to reflect some concepts, facts and figures about Real Estate Industry. * * * Introduction * The Real Estate Sector in India The real estate sector in India is flourishing rapidly with a growth rate of 30 percent each year. About 80 percent of the real estate development in India has been in the field of residential housing. The remaining 20 percent of the real estate includes office, shopping malls, entertainment centers, hotels, multiplexes and hospitals. India’s booming outsourcing business industry and consumption-led growth are contributing significantly to its real estate growth. The outsourcing...
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...subject area i.e. the impact of middle class on the real estate sector. The chapter links to the Research Objectives and contains secondary analysis and descriptions, which may provide a platform for later evaluation. According to a research by Deutsche Bank, World Bank, McKinsey and CNN- IBN(Sources should be with year example So Deutsche Bank,(Year) ), the total Indian middle class ranges from 300 million to approximately 360 million people; this comprises less than 30 percent of the total population of 1.2 billion (Please refer Chart 1 below). For multi-national corporations and domestic real estate companies, the middle class in India thus presents significant business opportunities. Over the last several years, the overall growth in the real estate sector has burgeoned and this explosion is primarily due to the aspirations of the lower middle, middle and upper middle class of India. Apart from this a whole new range of investment options in the real estate sector has increasingly gaining acceptance. However, keeping in mind the exposure and increasing needs and desires of the middle class, not many significant efforts have been made towards educating the masses. Dire improvements are needed to match the needs of the growing middle class and educate the masses about the real estate sector, which primarily is an unorganized sector. In order to ensure that the growing middle class integrates and understands well about the real estate, the right education has to be on everybody’s...
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...Dissertation on the Real Estate Sector of Mumbai and the Indian Middle Class Abstract The global financial meltdown had hit the real estate sector all around the globe, and Mumbai real estate sector is one such amongst them. The specific segment is plagued by reduction of demands, lowering of prices, inventory accumulation etc. In order to maintain their sustenance, they now want to target the middle class segment of the society. The entire purpose of this dissertation was to identify in the present economic conditions of the country, the target customer for such real estate sector. In order to conduct the research, a mixed research methodology is adopted deploying both qualitative research as well as quantitative research. Relevant research instruments were chosen, and 10 respondents were interviewed for the qualitative research and 300 individuals were undertaken in the quantitative research methodology. It was found that indeed the middle class with their high aspiration levels, and disposable income were the ideal target for real estate. However, in order to further attract the target customers, a host of suggestions are made. This dissertation is created through thorough referencing from academic journals, books, reports, newspaper articles etc. This paper would also be immensely helpful for students aiming to understand a clear picture of the real estate sector of Mumbai on ways to maintain its growth. Table of Contents Abstract 2 Introduction 5 Background...
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...P age |1 Summer Internship Project “Scope of investment in Real Estate in India & Real State investment: A case study of Jaipur region” Submitted in partial fulfillment of PGDM program 2011-13 Submitted by: Harshit Jain 19/093 Corporate Mentor Mr Shantanu Mehra ( Channel Retail Sales Head) Faculty Mentor Mrs. Monica Arora (Assistant Professor) Apeejay School of Management New Delhi July 2012 SIP Project Report BY: Harshit Jain(harshitjain.asm@gmail.com) | 1 P age |2 CERTIFICATE This is to certify that the project work done on” Scope of investment in Real Estate in India & Real State investment: A case study of Jaipur region ” Submitted to Apeejay School of Management, Dwarka by Harshit Jain in partial fulfillment of the requirement for the award of PG Diploma in Business Management, is a bonafide work carried out by him/her under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma. The original work was carried out during 14th may 2012 to 5th june 2012 in Customer First Concepts , Pvt. Ltd.( Currently working as a Marketing division of various townships in Jaipur region ). Date: Seal/Stamp of the Organization Name of the faculty Mentor SIP Project Report BY: Harshit Jain(harshitjain.asm@gmail.com) | 2 P age |3 Acknowledgements This summer internship project would not have been possible without the support of many people . I wish to express my sincere gratitude to my Faculty Mentor...
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