Our unique 3D Real Estate modelling processes connects real world data to the most captivating 3D special.

1. Presented By:
Gunjan Masand
Ritul Jain
Saurab Vats
Shanky Singhal
Shubhomita Sengupta
Shweta Datta

2. • What relevance does Real Estate And construction hold
in our economy?
• Why has infrastructure getting the prime focus in the
recent budget?
• What has actually changed the face of Realty and Real
Estate?
• Who are the names behind this change?

3. • The strong fundamentals of the Indian economy are having a
favorable 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 III
cities as well.
• High growth in services as well as manufacturing sector has
resulted in high demand for commercial and industrial real
estate.
• Further the economic growth has trickled down to the large
Indian middle class increasing affordability and affluence.
Improving living standards are driving the demand for better
quality housing and urban infrastructure.

4. Drivers for Growth of
Real Estate
&
Construction

5. Real
Estate
Rising
Tourism
Decline of
Joint Families
Easy
Availability
of Finance
Rise Of
Middle
Class

6. Real
Estate
Fiscal
Policy
Strong
Demographics
Rise of
Middle
Class
Rising FDI

7. Real
Estate
First Time
Buyers
International
Tourism
Developme
nt of new
Stream of
Business
Medical
Tourism

11. OBJECTIVES
Promotion of
investments from
domestic and foreign
sources.
Creation of
employment
opportunities.
Development of
infrastructure facilities
in the country.
Generation of
additional economic
activities.
Promotion of exports
of goods and services.

13. There has been a
drastic
curtailment in
restrictive
policies such as
the Urban Land
Ceiling and
Regulation Act.
Reforms in the
Integrated
Township Policy.
Liberalization of
FDI rules and the
emergence of
real estate funds.
Range of
Government
benefits &
incentives
including
residential tax
breaks and the
Special
Economic Zones.

15. DLF Group
Ansals
Parsavnath Developers
Unitech Group
K. Raheja

17.  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 in
India over the next few years.
 In current expansion plans, DLF has over 425 million sq. ft. of
development across its businesses, including developed, on-
going and planned projects.
 Spread over 32 cities, mostly in metros and key urban areas
across India

19.  Founded by Lala Chiranji Lal Ansal
 By far most dominant activity of Ansals has been Real Estate
Promotion & Development
 company has several landmark high-rise commercial building
like Statesman House, Ambadeep, Antriksh Bhawan, Tolstoy
House, Indra Prakash, Navrang House and Ansal Bhawan
 Ansals have also completed several residential buildings like
Gauri Sadan, Upasana at Hailey Road & Dhawan Deep at
Jantar Mantar road, all in the heart of New Delhi at Connaught
Place.

20.  There is the most prestigious “Ansal Plaza” Shopping Mall
associated with its work
 Also it has made elite townships, Sushant Lok and Palam
Vihar in Gurgaon and several other places all over the country.

21.  It was incorporated on July 24, 1990 under the Companies
Act, 1956 as Parsvnath Developers Limited.
 With more than two decades of experience in its repertoire,
the group has already stamped its presence already in
seventeen states and going Pan – India.
 It has made various developments in areas like GURGAON,
Noida, South Delhi.

22.  Plans to invest US$ 720 million in building hotels in the
country
 Its partner for this venture is Marriott International.
 Carved a niche for itself in India with its sprawling properties
and projects in Bangalore, Gurgaon, Noida, Greater Noida and
Kolkata
 Unitech Group took over projects in International areas as well.
 Actively involved in construction projects of power plants,
expressways, highways, transmission lines, classrooms,
amusement parks.

23.  Radisson Hotel, New Delhi has won accolades for its
wonderful infrastructure, astounding interiors, ideal location
and 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 Trade
Center and the launch of Millennium Plaza & Infocenter in
Gurgaon have made Unitech Builder earn a good reputation in
the industry.

24.  DLF is the market leader in this sector with net profit
of 1547 cr.
 It was way lower than its last year profit by more
than 1000 cr.
 It was well supported by the timely launch of IPL.
 The share of this co. touched the all time high of
1227 in dec. 2007 which was just 6 months after its
issue and now trading at 337.

25.  Their profit declined by 81.24% in the last financial
year over the last year.
 This is one of the badly hit company by the economic
slowdown.
 569 is the all time high of this company in 2006 and
now trading at just 10% of its all time high.

26. Investment in
Real Estate by
PE Firms
The Housing
Bubble Burst
Bankruptcy Of
Investment Banks and
Crash of US Economy

27. •IT Infrastructure – Temples of Modern India
•Townships
•Programming Houses
•Green Buildings

28. Skill Shortage.
Non Availability of Statistics.
Overvaluation of Property.
Highly Fragmented.
Lack of Transparency.

29. CONSTRUCTION
COST
Labour Rates
Escalated to
5-10 %
Bricks Prices
Increase by
30-35 %
High Interest
Rates

30. Rising Prices
Decreasing Demand
DLF
UNITECH
PARSAVNATH

31. IMPACT OF RECESSION ON
REAL ESTATE

32. Incompletion
of previous
projects.
Bad Debts.
Less demand
in all
segments.
Cash
starvation.

33. Launched
affordable
housing
project.
Payment of
short term
debt by
raising long
term debt.
Terminated
projects with
long
gestation
period.
Sale of
properties
for liquidity
preservation.
Cost
reduction
through tight
cash flow.

34. QIP issuance to reduce
debt.
Reduced promoter’s
stake from 64% to
51%.
Increased confidence
with customers on
project delivery.
Major Strategic
restructuring.

35. Key Focus Areas Before Now
1. Residential Segment Primarily target
luxury/upper middle
income housing segment
More focus on mid and
affordable housing
segment.
2. Assets and Land bank Buy predominantly
agricultural land and build
land bank for projects
across all segments.
Sell assets selectively and
acquire land only for
mid/low income housing
projects.
3. Debt Short Term maturities. Restructured to longer
maturities.
Higher proportion of
expensive unsecured
loans.
Cheaper Collateralized
loans.
Increasing debt with more
projects.
Reduced leverage.

36.  Overall Impact considered to be marginally positive.
 Infrastructure investment to be raised over 9% of
GDP.
 Funding pressure on construction companies to be
eased 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 economic
weaker section & lower income group.

37.  Close to $7 billion to $8 billion of venture capital
expected to flow into Indian real estate market.
 A significant increase in project execution through
Public- Private-Partnerships.
 More demand for office and industrial space.
 Current levels of investments in infrastructure are not
sufficient to bridge the gap between demand and
supply.

38. THANK YOU