India Real Estate Market

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As you are asking about the India Real Estate Market

Real Estate Industry in India

Few Key drivers for retail growth in India

Booming consumerism in India
Organised retail sector growing 25-30 per cent annually
Entry of MNC retailers
India's population below 30 years of age having exposure to global retail are expected to drive demand for organised retail

Introduction-

The real estate sector is one of the most worldwide recognized sectors. In India, real estate is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade.

The Indian real estate market has become one of the most preferred destinations in the Asia Pacific1 as overseas funds accounted for more than 50 per cent of all investment activity in India in 2014, compared with just 26 per cent in 2013.

The real estate sector comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations.

Market Size-

The Indian real estate market is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP).

In the period FY08-20, the market size of this sector is expected to increase at a Compound Annual Growth Rate (CAGR) of 11.2 per cent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.

During the first nine months of 2015, PE funds invested about US$ 2.4 billion in the real estate sector, across 53 transactions compared US$ 1.3 billion across 57 transactions in the same period last year. Deal sizes have also increased in 2015, and residential projects both luxury and reasonably priced have attracted a substantial amount of capital.

Investments-

Some of the major investments in this sector are as follows:

Edelweiss Alternative Asset Advisors Ltd plans to raise US$ 1 billion for its first residential real estate fund called the Edelweiss Real Estate Fund, which will finance investments in five property markets in India - National Capital Region (NCR), Mumbai, Pune, Bengaluru and Chennai.

Quikr, an online classifieds platform, has acquired real estate portal Commonfloor.com for US$ 200 million in a stock-cum-cash deal.

Edelweiss Alternative Asset Advisors and Milestone Capital are investing Rs 7,200 crore (US$ 1.08 billion) in India’s real estate sector while private equity firms like Goldman Sachs, Warburg Pincus and Singapore’s GIC are exploring viable projects for
Investments , as a result of government’s effort to boost real estate sector.

Macquarie Infrastructure and Real Assets (MIRA), the realty investment arm of Australian Macquarie Group Ltd, plans to invest in real estate projects in India and is in talks with Tata Housing Development Co. to jointly set up an investment platform.
Google Capital has invested in Bengaluru-based online property search platform, CommonFloor.com.

Omkar Realtors and Developers Private Limited is in discussions to raise Rs 400 crore (US$ 60 million) from KKR India, the local arm of PE firm Kohlberg Kravis Roberts and Co.

Goldman Sachs bought shares worth Rs 255 crore (US$ 38.3 million) in Vatika Hotels Private Limited, a company owned by real estate and hospitality firm Vatika Group.

SoftBank, Falcon Edge Capital and a few others invested US$ 90 million in Locon Solutions Private Limited, which runs Housing.com - a realty website.

Real estate firm Supertech has planned to invest about Rs 2,000 crore (US$ 300 million) in Gurgaon over the next few years by launching several luxury and affordable projects.

PE firm Warburg Pincus invested Rs 1,800 crore (US$ 270 million) in Piramal Realty for a minority stake in the company.

China’s Fosun International Limited is seeking to invest US$ 100 million in Locon Solutions, the owner of Housing.com.

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