Transcript Experience India

India Institute of Real Estate
India
One Nation. Diverse Destination
Advantage INDIA
Democracy
Amongst the most vibrant in the world with well
established judicial system and free press
Demographic Profile
Total Population below 25 years of age – 547 Million
Advantage INDIA
Real Estate Market Size
• US$ 12 Billion and growing at 30 percent annually
• 100% Foreign Direct Investment permitted in Integrated
townships
Advantage INDIA
Strengths
• After United States, India is home to largest English
speaking manpower
• The Indian Economy is now ranked 12th in the world in
terms of GDP
• Large and growing domestic Market; increasing
purchasing power and consumerism
• Provides opportunities for competitive advantage (low
cost sourcing of products and services, exceptional
quality, intellectual skills, etc.)
Advantage INDIA
Weakness
• Bureaucratic hurdles and government processes
resulting in a difficult operating environment
• Low average disposable income, a highly dispersed
population and distinct tastes from the rest of the world
• Weak infrastructure in terms of roads, power, and port
facilities
Advantage INDIA
The advantages of investing in India
(Mumbai – The Commercial capital)
as compared to investing in International Markets…
• Estimated achievable Return on Investment (ROI) per
annum at current capital valuations (Rental):
8% to 12% pre-tax
• Estimated Capital appreciation on possession (18-24
months): 25 -35%
India Institute Of Real Estate &
The National Association of Realtors®
Bilateral Agreement
• Our Tie up with the National Association of Realtors has
in a big way elevated the standard of Property
Consultants in India
• Instead of re-inventing the wheel we tied up with `The
National Association Of Realtors - USA’ (NAR) for an
educational module and International Certification
…IIRE & NAR
What sets one apart is the recognition as
a `Qualified Professional’.
It is like separating the men from the boys.
Comparison of the roles played
by the Property Consultant in
India & USA…
• Unlike in the United States where you have one agent for one
property - in India there is nothing like that
• Most buyers and sellers both talk to several brokers with regard to
their intention
• There is no recognized MLS system in spite of being technologically
advanced
• The brokers in USA need to have a license to practice - in India we
have no such law
• Brokers in India are not qualified to handle government
documentations etc. and depend on a solicitor / lawyer
Comparison of the roles played
by the Property Consultant in
India & USA…
Commission:
• Our commissions were supposed to be 2% of the purchase/sale
value. But has been slashed by half to 1% due to competition
between International agents who entered the country around 1995.
The likes of Cushman & Wakefield, Colliers, Knight Frank, CB
Richard Ellis, JLL amongst others have their presence in India
• Commission is charged to both parties, buyer and seller. At times we
do manage to get our full dues @ 2% from at least one of the parties
• If there is more than one agent involved (which is in most cases)
commission is shared on mutually agreeable terms
Experience India
(As a Foreign National)
Expectations
vis a vis
Reality
• Independent House /
Bungalows
• Apartments / Buildings
• Easily affordable
• VERY expensive – especially
Mumbai!
• Poor Infrastructure Quality
• Extensive Travel Time
Difference in Property Style & Living
between
India & U.S.A.
• Weather conditions & pollution makes city living in Mumbai
relatively more demanding on basic health & fitness
• Layout of most of the existing, older apartments is designed
for the Indian way of life, except for the emerging apartment
blocks & serviced apartments which have a global appeal.
(According to country needs)
• More of apartments than independent houses in Mumbai
• Emergence of apartment blocks & serviced apartments
focused purely on lease to expatriates
Difference in Property Style & Living
between
India & U.S.A.
• Dependence on stand-alone recreation clubs for amenities
such as club house, pool & recreation for kids - except for a
select few projects
• Intra-city travel is an ever growing challenge on your time
schedules, although the state is doing its best to ease the same
by building flyovers & sub-ways
• Lack of City Planning as demand for residential & commercial
properties far outpaces supply. Except for South of Mumbai,
the rest of the city has not followed a global benchmark
• Daily needs Supplies: In an emerging era of super & hyper
markets - local stores still rule owing to their absolute
proximity to residential hubs
We would like to Invite each and every
one of you to our beautiful country
‘India’ to experience the hospitality and
warmth of our people.
Thank You