India is among
those developing countries whose annual growth rate is constantly going over
8% for last few years. In the recent years, India has been one of the most
sought after destination for the real estate investors. Investors from all
over the world are looking towards India to invest in different sectors of
real estate. The big bosses of real estate investment sector are either
grasping the projects on their own or they are combining with small or
medium class companies to run huge projects. The biggest MNCs have already
established their business in major cities of India and some new companies
are in row to start their business as quick as possible. The booming economy
of India and liberalized government policies are responsible for sudden
large investments in real estate sector.
India Realty Market Size
According to a survey by FICCI, the Indian real estate market is estimated
to be of $12bn, with an ample growth rate of 30% annually. It is estimated
that in the next 8 to 10 years, the Indian realty sector is likely to grow
from US$ 15 billion to US$ 90 billion. According to industry sources, in
2007 realty equity deals worth $30 billion are in the process across all
Asian markets. The Indian real estate market will have about one-fifth share
of this investment. With $6 billion, India is behind Japan and China who are
estimated to collect $9-10 and $6-7 billion respectively.
There are over 42 million sq. ft. of high quality retail space developed
and under development in metros and other urban cities across the country.
The top global investors like Morgan Stanley, Carlyle, Trikona, Blackstone,
and Warbus Pincus are planning to invest a total of US$ 12-15 billion in
coming years.
Major Investments and Joint Ventures
Some of the major real estate business houses who are keen on ample
investments are the Philippines based Ayala & Signature group, Dubai
based Och-Ziff Capital, EurIndia & Old Lane. These are only few names to
mention. Investors from other regions like US, UK, Israel, Malaysia,
Singapore etc want to be a part of the real estate story of India. These are
some major joint ventures which the foreigner companies have established
with Indian real estate companies.
- Goldman Sachs (US-based global investment bank) and Unitech (largest
listed Indian real estate company) have decided to set up a special
purpose vehicle (SPV) in the real estate sector with an investment of
US$ 208.7 million.
- DLF Ltd and Nakheel (a large property developer of the UAE) have
joined hands for a 50:50 joint venture. The two will develop two
integrated townships in India at a whopping investment of US$ 10
billion.
- Zürich based Credit Suisse (world's leading financial house)
have finalized a deal to invest US$ 1 billion in India's real estate
sector.
- DLF and Hilton Hotels Corporation (HHC) declared a joint venture to
develop around 75 hotels and serviced apartments over 7 years.
- Dawnay Day International (UK based investment company) announced to
invest US$ 1.5 billion in real estate in the next two years.
- Morgan Stanley lately finalized a deal with Oberoi Constructions
worth about $150 million.
Major Players in Indian Realty Market
DLF: The DLF group is India's largest real estate company expanding
at a rate exceeding 30% annually. The group is working on projects covering
areas over 220 million sq. ft. and is expected to start projects on 574
million sq. ft. in near future. DLF is operating its major plans and
projects in different cities of India including NCR regions, Chennai,
Mumbai, Kolkata, Hyderabad, Ahmadabad, Bangalore etc. DLF Joint Ventures
are:
- DLF has finalized a joint venture with US-based hospitality major
Hilton. In the next six-seven years they will build 50 to 75 hotels and
serviced apartments in different cities in India.
- DLF and Fortis Healthcare have signed an Mo U for constructing 31
hospitals at an investment of Rs 6,200 crore.
- DLF and Nakheel (Dubai based property developer) announced a 50:50
Joint venture to develop two major townships in India.
- DLF and Prudential International Investment Corporation are planning
to set up a joint venture in the near future for asset management.
Omaxe
Omaxe is amongst the large real estate developers in India. They have been
building high quality, artistically designed, strategically located
residential and commercial spaces for several esteemed Indian private,
public sector and Multinational clients.
In a short period of 5 years since establishment in 1987, the company has
completed and delivered 10 projects consisting of 8 residential and 2
commercial covering approx 5.13 million sq. ft of area. Currently the
company has 46 projects under development comprising 19 housing projects,13
integrated townships,13 shopping malls and commercial complexes and 1 hotel.
In Northern and Central India, company is developing over 140 million sq ft
of saleable area across 30 towns in 9 states.
Unitech
Unitech Group is amongst the major township planning and real estate
development companies in India. The business portfolio of this group
includes residential property developments, leisure and entertainment
projects, hospitality business and heavy construction.
- Unitech group has acquired land properties of over 8,000 acres all
over India spreading from Gurgaon to Kolkata, Kochi, Hyderabad and
Chennai.
- Unitech group is the foremost amusement park developer in the country
with two major projects currently running and will probably finish in 2
to 3 years. The two parks, spread over 200 acres, are situated in Rohini
(Delhi) and Noida .
- Unitech group has tied up with hotel major Marriott to enter in the
hospitality sector. The two will launch business hotels in Gurgaon,
Noida and Kolkata, under the courtyard brand.
Vatika Group
Vatika Group is amongst the fast growing real estate developing companies
in India. The business portfolio includes corporate & residential
complexes, resorts, shopping malls, hotels and restaurants etc.
- Vatika Group build several high-class residential and commercial
projects like Vatika First India Place, Vatika Triangle, Vatika Atrium
etc. The group is currently working on three major commercial properties
totaling over 1.5 million square feet.
- Vatika farms, Vatika greens, and Vatika woods created in the fringes
of Gurgaon are some of the trendy communities build by this group.
- This group is developing Vatika Infotech City covering an 800 acres
in Jaipur, consisting houses, plots and IT park.
- The Group has joined hands with restaurants Fox and Coriander Leaf to
enter in the hospitality sector to build luxury hotels in Jaipur and
Bangalore.
Ashiana Group
Ashiana Group is one of the leading real estate developers in Northern
India. They have concentrated only on housing development and build some
quality residential projects. The group has undertaken more than 40 lacs sq.
ft of construction in residential and commercial sectors.
- Some of their renowned and famous residential projects are Ashiana
Villas, Ashiana Gardens, Ashiana Gulmohar Park, Ashiana Suncity, Ashiana
Enclave, and Residency Greens.
- Ashiana group's unique project in Bhiwadi, Ashiana Utsav is a unique
housing project, first of its type in India providing a comfortable
post-retirement life for retired citizens.