On National Teacher Day, meet the 2024-25 Kenan Fellows
Economics
1. REAL ESTATE
INDUSTRY
PRESENTED BY
ANUPAM SWAIN
MANISH JAISWAL
CHIRAG BACHANI
ANUJ MISHRA
AMIT KUMAR
2. M ONOPOLISTIC OR I MPERFECT
C OMPETITION
Where the conditions of perfect competition
do not hold, ‘imperfect competition’ will exist
Varying degrees of imperfection give rise to
varying market structures
Entry and exit from the industry is relatively
easy – few barriers to entry and exit
Consumer and producer knowledge imperfect
3. M ONOPOLISTIC OR I MPERFECT C OMPETITION
Implications for the diagram: Since the additional
MC revenue received from
each unit sold falls, the
Cost/Revenue
MR curve liescurve facing
The demand under the
AR firm will be downward
the curve.
AC sloping and represents the
AR earned from sales.
£1.00 We assume that the firm
produces where MR = MC
If(profit maximising output).
the firm produces Q1 and
Abnormal Profit sells each unit for £1.00 on
At this output level, AR>AC
average with the cost (on
and the firm makes
£0.60 average) for each unit being
abnormal profit (the grey
60p, the firm will make 40p x
shaded area).
Q1 in abnormal profit.
This is a short run equilibrium
position for a firm in and
Marginal Cost a
monopolistic marketwill be the
Average Cost
structure. shape.
same
MR D (AR) However, because the
products are
differentiated in some
Q1
Output / Sales way, the firm will only be
able to sell extra output
by lowering price.
4. REAL ESTATE
INDUSTRY
Real Estate Industry in India witnessed a historic boom
during 2002 to 2007.
Real Estate Developers in India grew multifold very fast.
Land and property prices skyrocketed.
Many developers went for public issue of shares at very
high valuations.
Attracted by liberalization of foreign investment
regulations, International investors invested billions of
dollars in Indian real estate sector.
A number of real estate companies went for IPOs
between 2006 and 2008
5. Real Estate
Special
Commercial Residential Hospitality
Retail Space Economic Zones
Office Space Space Space
(SEZs)
• The current contribution of Real Estate to India’s GDP
is about 5%
• FDI inflows worth more than $2.8 billion between 2000
and 2009
• Market size is $50 billion
• Expected to be $180 billion by 2020
6. C OMMERCIAL O FFICE S PACE
Growth Drivers
Multinational companies (MNCs) and the growth of the services sector.
Significant growth in FDI
Market Structure
Pan India presence
International players
Outlook
• Growth in services —telecom, financial services, IT &
ITeS,
etc.,
7. Commercial Office Space Absorption
10% 14%
8%
Mumbai
NCR
Hyderbad
11%
23% Banglore
Chennai
Kolkata
Pune
26% 8%
9. R ESIDENTIAL S PACE
Growth Drivers
Urban population estimated to reach 590 million by 2030
Number of nuclear families estimated to cross 300 million
16 to 64 age group—almost 64% of the total population
Growing demand for affordable housing
Easier access to loans
Market Structure
Unorganized
Regional players are expanding to achieve a pan-India presence
11. R ETAIL S PACE
Growth Drivers
Growth in organized retailing
Entry of international retailers
Segmentation
Organized retail contribution to the retail industry grew from 2%
in 2003 to 5.5% in 2009
International retailers are growing through the franchisee
route
12. Absorption of Organized Retail Space
Total
6%
4%
9% NCR
Mumbai
43% Banglore
12% Kolkata
Pune
Chennai
5%
Hyderbad
21%
13. H OSPITALITY S PACE
Growth Drivers
Increase in tourism, including both business and leisure travel
Medical tourism destination
International events
Market Structure
Existing hotel operators are scaling up their operations.
Budget hotels and service apartments
Increasing presence of International players
14. S PECIAL E CONOMIC Z ONES (SEZ S )
.
Industry - Wise classification of formally approved
SEZs
Electronics
11% Hardware, IT/ITES/
4% Biotechnology
5%
2% Engineering
5%
4% Others
69%
Gems & Jewellery
Pharmaceuticals
Source: Edeliwiss, E&Y Research, ET 7 September
15. Major Countries investing in Indian Real
Estate
2%4% Dubai
10%
Indonesia
Singapore
25% 59% Malaysia
Others
Source: Industry sources, E&Y Research
17. PREFERANCE AREAS IN
MUMBAI
Outside Mumbai
1%
3% Western Suburbs
3% 3%
5% Thane
29%
Central Mumbai
12%
Navi Mumbai
Kalyan / Dombivali
15%
South Mumbai
29%
Western Suburbs
beyond Dahisar
18. COMPARING PRICE BETWEEN
MUMBAI AND KOLKATA
MAJOR PLAYERS IN REAL ESTATE
COMMERCIAL MARKET
COMPANY MUMBAI KOLKATA
DLF 15000 11000
K RAHEJA Corp 14500 9000
EMAAR 18000 14000
SOBHA 10000 7000
UNITECH 12500 9500
GREENFIELD 16000 11000
PRESTIGE GROUP 11000 6500
19. COMPARING PRICE
BETWEEN MUMBAI AND
KOLKATA
RESIDENTIAL MARKET
COMPANY MUMBAI KOLKATA
DLF 10000 6500
KUMAR DEV. 9500 5000
Omaxe Builders 9000 6000
UNITECH 11000 6000
PARSVANATH 9000 6000
20. CONCLUSIONS
Though the economic meltdown has tremendously affected
this cosmopolitan city
It has made some good for the property investors, because the
properties which were once sold at sky rocketing tags has
come down immensely, making it people-affordable purchase.
With the market slowly picking up, and job opportunities
steadily moving up, most top real estate players in commercial
and residential stream like Hiranandani, Adarsh,
Brigade,Prestige, and DLF group have once again commenced
their new projects in Mumbai.
This time the target has been the middle and lower income
group.
Thus with the new avenues slowly opening up in the economic
front, and with the real estate initiating new projects at
affordable cost, it is the ideal time for investors to make the
right move on housing decision
