This document provides an introduction to the real estate industry in India. It defines real estate as property consisting of land and buildings. The real estate sector is one of the fastest growing and second largest employment generating sectors in India. It has been growing at 20% annually and contributes 5-6% to India's GDP. The key segments of the Indian real estate industry are residential, commercial, retail, hospitality, and SEZ (special economic zone) properties.

1. Introduction To Real Estate

2. Objective of this Chapter
• The objective of this chapter is to give you an overall and
quick view of real estate and real estate industry.
• You could be aware of the current market scenario of real
estate.
• This chapter also aims at informing you regarding the sectors
involved in real estate along with the type of industry which
they include within them.
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3. Agenda
•
•
•
•
Defination of Real Estate
The Real Estate Zoner View
The Real Market Scenario Today
Segments in Real Estate Sector
– Residential Space
– Commercial Space
– Retail Space
– Hospitality Space
– SEZs
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4. Defination of Real Estate
Real Estate is "Property consisting of land and the buildings
on it, along with its natural resources such as crops, minerals,
or water; immovable property of this nature; an interest
vested in this; (also) an item of real property; (more generally)
buildings or housing. Also the business of real estate is the
profession of buying, selling, or renting land, buildings or
housing.
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5. The Real Estate Zoner View
a) Rapid expansion of the IT/ ITES and business outsourcing
industry (including knowledge process outsourcing and
clinical testing outsourcing);
b) Rising demand in the residential sector, encouraged by
rapidly increasing income levels;
c) Acceptance of shopping malls as “one stop destinations” for
consumers; and
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d) Growing popularity of Special Economic Zones as preferred
destinations for both manufacturing and service industries.

6. The Real Market Scenario Today
• The real estate sector is a critical sector of our economy.
• It has a huge multiplier effect on the economy and therefore,
is a big driver of economic growth.
• It is the second-largest employment-generating sector after
agriculture.
• Growing at a rate of about 20% per annum and this sector has
been contributing about 5-6% to India’s GDP.
• Not only does it generate a high level of direct employment,
but it also stimulates the demand in over 250 ancillary
industries such as cement, steel, paint, brick, building
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materials, consumer durables and so on.

7. The Real Market Scenario Today
• The sector not only witnessed the entry of many new
domestic realty players but also the arrival of many foreign
real estate investment companies including private equity
funds, pension funds and development companies entered
the sector lured by the high returns on investments.
• The industry achieved new heights during 2007 and early
2008, characterised by a growth in demand, substantial
development and increased foreign investments.
• However, by mid 2008, the effects of the global economic
slowdown were evident here too, and the industry took a ‘U’
turn. FDI inflow into Trainings by Vidya Bhagwatsignificantly and
real estate dropped
what had emerged as one of the most promising markets for
foreign investments experienced a downturn.

8. Segments in Real Estate Sector
•
•
•
•
•
There are various segments in Indian Real Estate sector. They
are as follows:
Residential Space
Commercial Space
Retail Space
Hospitality Space
SEZs
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9. Residential Space
• Residential Space is the space which is meant to live in. It is a
space which people construct and prefer to live with their
family. This includes apartments, buildings, row houses,
bunglows etc.
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10. Commercial Space
Commercial property includes office buildings, industrial
property, medical centers, hotels, malls, retail stores, farm
land, multifamily housing buildings, warehouses, and garages.
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11. Retail Space
• Retail space is the last stop in the manufacturing chain, the
spot where merchants sell products to customers.
• Retail space differs from other commercial properties, such as
industrial or office space, in that the emphasis is on product
display and customer accommodation.
• Retail space comes in a variety of shapes and sizes and may be
located in free-standing buildings, enclosed malls, strip
shopping centers, downtown shopping districts, or mixed-use
facilities. You will also find retail space in airports and other
transportation facilities, hotel lobbies, sports stadiums, and
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temporary or special-event venues.

12. Hospitality Space
• The Hospitality Space is that space which is required so that
people could be able to enjoy, relax and enter into a friendly
and relaxed environment.
• It is a broad category of fields within the service industry that
includes lodging, restaurants, event planning, theme
parks, transportation, cruise line, and additional fields within
the tourism industry.
• A hospitality unit such as a restaurant, hotel, or even an
amusement park consists of multiple groups such as facility
maintenance, direct operations (servers, housekeepers,
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porters, kitchen workers, bartenders, etc.), management,
marketing, and human resources.

13. SEZs
• A Special Economic Zone (SEZ) is a geographical region that
has economic and other laws that are more free-marketoriented than a country's typical or national laws.
"Nationwide" laws may be suspended inside a special
economic zone.
• The category SEZ covers, including free trade zones (FTZ),
export processing Zones (EPZ), free Zones (FZ), industrial
parks or industrial estates (IE), free ports, free economic
zones, urban enterprise zones and others..
• Usually the goal of a structure is to increase foreign direct
investment by foreign investors,Bhagwat
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business or a multinational corporation (MNC), development
of infrastructure and to increase the employment.

14. Summary
• Real estate is "Property consisting of land and the buildings
on it, along with its natural resources such as crops, minerals,
or water; immovable property of this nature.
• Real estate is a separate industry or a separate sector.
• The real estate industry is one of the fastest growing
industries in our economy, with an Compound Annual Growth
Rate of approximately 30%.
• It is the second-largest employment-generating sector after
agriculture. Growing at a rate of about 20% per annum and
this sector has been contributing about 5-6% to India’s GDP.
• There are various segmentsby Vidya Bhagwat Estate sector such
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as Residential Space, Commercial Space, Retail Space,
Hospitality Space, SEZs.

15. Assignments
1. Calculate the growth rate of any 5 sectors in comparison with
Real estate.
2. Which are the other industries associated with Real Estate?
Also mention the top brands of those associated companies.
3. Make a Report on current status on Real Estate Industry in
your city.
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