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THE INDIA GROWTH STORY

• Total Population - 1.18 Billion , Second in the world, one of the youngest population: 54% below 25 years

• 350 million strong urban and rural middle class

• 12th largest Economy and 4th Largest in Purchasing Power Parity

• Top 10 growing Economies in the World

• World No.1 in receipt of Remittances ( NRI’s)

• Top 10 services Exporter

• Top 20 exporter of Goods

• 10th largest car market

• Highest English speaking population serving the services sector

India Facts

Macro -Economics

• Economic Growth

– Avg. GDP growth Expected at 8% for 2012

• Inflation at 9.36 percent

• Marginal deceleration in Manufacturing /IIP growth for the current

year

• Significant Growth in the Service Sector, IT/ITES

• 36 percent growth in Exports at US $ 24.8 Billion

• FDI Inflows US$ 30.3 Billion & FII Inflows US$ 31 Billion

• Foreign Exchange Reserves US$ 320 Billion ( Till Oct 2011)

• Regulatory Policies in the Banking sector makes it resilient

compared to other countries

Infrastructure Growth

• Railways: – World's fourth largest railway network – 114,500 KM of total track– 7,500 stations– 30 million passengers and 2.8 million tons of freight daily– With more than 1.36 million employees

• Power– The country is targeting a capacity addition of 62,000 megawatt in the 11th Five

Year Plan between 2012-2017. – 3rd Largest coal producer, 66% power generation coal based– Scope for investment - Over $400 Billion over the next Five years.– Reliance on Renewable energy (Wind based) going forward.

• Airports – More than 335 Civilian airports and 20 international airports– Most of the existing and future airports under PPP model– Planned investment in this sector is US$ 9.7 billion in 5 yrs

• Roads: – Total length approximately 3,320,410 Km,– 3rd largest road network in the world.– Planned investment at US$ 87.2 billion

Infrastructure Growth

• Education: – India's education system one of the main contributors to its economic growth– Much of the progress especially in Higher education, Scientific research has been

credited to various public institutions. – The private education market in India is only 5% estimated to be $68 billion by 2012

• Healthcare– Needs 1 Lakh beds each for the next 20 years– It’s a US $ 77 billion industry– Industry growth at 23% annually.

Social Infrastructure Needs

GDP1970-71 - INR 4.7 lakh CR (US$ 940 Billion)1990-91 - INR 10.8 lakh CR (US$ 2160 Billion)2010-11 - INR 48.8 lakh CR (US$ 9760 Billion)

Per capita income...at constant prices...

1970-71 - INR 8,091 (US$ 162)1990-91 - INR 11,535 (US$ 231)2010-11 - INR 41,129 (US$ 823)

With higher per income, poverty rate dipped from 65% to 35%

Household Savings:1970-71 - INR 4371 CR (US$ 8.7 Billion)1990-91 - INR 104789 CR (US$ 210 Billion)2008-09 - INR 12,61,332 CR (US$ 2523 Billion)This has helped finance the high tempo of economic growth

Then and now, How the economy changed !!!

FDI1970-71 - US$ 0.13 Billion 2010-11 - US$ 30.30 Billion

Forex reserves1970-71 - US$ 0.97 Billion1990-91 - US$ 5.8 Billion2010-11 - US$ 274 Billion

Exports1970-71 - US$ 2.1 Billion1990-91 - US$ 18 Billion2010-11 - US$ 245 BillionThe worlds top exporting nations

Telephone Users1991 - .05 million users2011 - 865 million users!! Mobile revolution has connected India

Then and now, How the economy changed !!!

Passenger cars 1970 - 36032 cars1990 - .18 million cars2010 - 2.9 million carsGlobal auto hub...after telephone ,the most radical change

Air passengers1970 - .48 mm1990 - 8.9 mn2010 - 57 mnCommon Man flies now, unthinkable in 1991 !!!

Pay cheques got bigger!!!!BCCI fees for cricketers1991 - 9000 per test (450 USD) - 3000 per ODI (150 USD)2011 - 7 lakh per test (35,000 USD) - 4 lakh per ODI (20,000 USD)With liberalization came big television and with that big money for sports !

Then and now, How the economy changed !!!

Expenses also went up:

Monthly rental of 2 bed flat in south Mumbai 1991 - INR 40,000 ( 800 USD)2011 - INR 2,50,000 (5000 USD)

Meal for two in a five star Hotel in Delhi1991 - INR600-800 (12-16 USD)2011 - INR2200-3500 (44-70 USD)

Haircut in Delhi ambassador hotel1991 - 32 (64 cents)2011 - 500 (10 USD)

Then and now, How the economy changed !!!

• Dominance of Middle class in the residential sector

• Average age of Home buyers - 28 yrs.

• Change of attitude from “save and buy” to “buy and repay”

• Dual Income families gives flexibility in buying larger homes

• Easy accessibility and choice of home loan

• Considered as an Asset class for Investment, Also an alternative to stock markets

• Good Demand for Office space especially in South India

• Key Driver of growth in office segment being IT/ITES sector

• High Disposable income among young India driving organized retail business

Real Estate Scenario In India REFORMS REQUIRED

• Growing market for all segments

• Housing shortage of 24.7 million dwellings at the beginning of 11th five year plan.

• Growing urban population which is currently 29% expected to grow with huge rural to urban migration

• Organized retail just 4% of the overall market

• FDI in Real estate especially in retail presents a great opportunity for international brands like Carrefour, TESCO, Wal-Mart etc.

• Tier II cities – Scope for Residential & Office

• Infrastructure Projects -Roads, Bridges, Flyovers etc

• PPP with Government

• Special Economic Zones

• Township Developments

Opportunities

• Consolidation & emergence of a few PAN India Operators

• Foreign players

• FDI

• Townships

• Tier I cities– Maturing of markets– Stability in prices– 10-12% annualized growth

• Tier II cities– Emergence – 10-20% annualized growth

Future Of Real Estate

• Sustained demand for quality housing

• Demand for villas and themed developments

• Continued growth in IT & BPO segment

• Consolidation of large IT players into Captive Campus environment

• Steady growth in Retail

Market Outlook

ResidentialApartments

Villa Developments

Leisure Properties Retail/ Entertainment

Retail Store Malls

Specialty MallsFood Courts

Mall Management

CommercialCorporate Office Space

Technology Parks Corporate Fit Outs

Built to suit Facilities/ Campuses HospitalityHotels Resorts/

Spa Serviced

apartments Convention

Centre

ServicesProject Management

Property Management Construction Management

Business Verticals

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FIABCI PRIX D EXCELLENCE 2011WINNER

INDUSTRIAL CATEGORY

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THANK YOU !! Presented By :

FAROOK MAHMOOD, FRICS Chairman & Managing Director, Silverline Realty (P) Ltd. Vice President FIABCI World Council of Brokers.Founder President, National Association Of Realtors - IndiaImmediate Past President, Bangalore Realtors Association-IndiaDirector, ICREA International Advisor, FNAIM