Transcript Real Estate Education in India

Real Estate Education in India
Anil Kashyap and Jim Berry
The 3rd ERES Education Seminar, Paris
7-8th December, 2007
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Real Estate Sector in India
• Second fastest growing economy - GDP growth rate of
9.4% (FY 2006–2007)
• Volume of India’s real estate market is expected to
triple to $90 billion by 2015
• Demand for 200 million square feet over the next 5
years
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• Existing shortage of 20 million residential units
• Over 500 shopping malls are under construction and
will be operational by 2008
•
(TCM now JLLM, 2007)
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Real Estate Boom
Policy changes introduced by the Government in February 2005 allowed 100 per
cent foreign investments in construction projects with fast-track approvals.
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Real Estate Services and Education
• Changing business environment is attracting
investments in real estate sector in India
• Growing demand for the new skills and knowledge
• Multiply over next decade
• Increasing need and demand for real estate
specialist education
• Need for research
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Research Design
• Examination of the websites and several graduate
programmes in India
– No formal Real Estate degree courses in the education
system
– Real Estate principles are taught in Business School
environment
• Mailing list was developed from the international real
estate & investment consultants, and property
developers
– to assess the need and
– demand of real estate education
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Research Approach
• Online survey sent to 45 International Real Estate
Consultants, Developers and Investment Consultants
in Nov 2007.
• 32% response rate
• Stage I – Assessment of need and demand using the
questionnaire (Dec 2007)
• Presentation of results and feedback
• Stage II – Structured discussion with key stakeholders
in India (Jan-Feb 2008)
• Stage III -Findings dissemination stage
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Which of the following best describes the role of your
organisation?
Real Estate Consulting
Service (Q1a)
18%
46%
36%
Real Estate Investment
& Financial Consultant
(Q1c)
Real Estate Developer
(Q1b)
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Please indicate the real estate sectors within which your
company operates?
Real Estate Sector
Core infrastructure (Q2a)
%
9.09%
Retail (Q2b)
72.73%
Commercial Offices (Q2i)
81.82%
Entertainment (Q2c)
27.27%
Leisure and Hospitality (Q2d)
36.36%
Townships/Residential (Q2e)
81.82%
Information Technology (IT) Parks (Q2f)
54.55%
Business Parks/Industrial Parks (Q2g)
63.64%
Hotels (Q2h)
63.64%
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How many of employees undertaking specialist real
estate functions
Calculation
Sum
Result
High Potential demand
1777
Standard Deviation
274.61
Large gap between -
Average
161.54
• number employed &
• number having real
estate education
Minimum
1st Quartile (Q1)
3
25
2nd Quartile (Median)
77.5
3rd Quartile (Q3)
164
Maximum
1000
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Other professional qualifications employees in
real estate functions
Business Administration (Q5a)
11
100.00%
Engineering (Q5b)
5
45.45%
Planning/Architecture/Urban Design (Q5c)
8
72.73%
Law and Taxation (Q5d)
2
18.18%
11
100.00%
2
18.18%
Finance/Accountancy (Q5e)
Econometrics and Forecasting (Q5f)
• High proportion of employee with Business Administration
• Next higher proportion with Planning/Architecture/Urban
Design
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Perception on skills gap in professional undertaking real
estate related functions?
Yes
No
9%
91%
• 91% perceive skills gap
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In your opinion, is there a need for professionals with
Real Estate qualifications in India?
Yes
No Answer
9%
91%
• High level of need for professional with real
estate qualifications
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In your opinion, do you think there is a demand for Real
Estate degree courses in India?
Yes
No Answer
9%
91%
• High level of demand for real estate courses
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Which level of Real Estate degree programme do you
think would be most appropriate in meeting the
immediate demands of real estate sectors in India
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Executive
Programmes
(Q8b)
Undergraduate Postgraduate
Degree Courses
Degree
(Q8c)
Programmes
(Q8d)
PhD by
Research (Q8e)
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• Demand for short executive and postgraduate course
• Research (PhD) will follow after PG courses are
established
• 82% ranked Business Administration degree best to
fill in demand in absence of real estate courses
• 55% and 36% ranked degree in Finance and
Economics
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State which courses would best meet the need of your
company in undertaking real estate functions?
• 91% considers that specialist real estate education
should be offered in India
• 63% considers that real estate stream should be
attached to MBA programmes
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Given the growth in real estate industry, do you
consider that specialist Real Estate Degree courses
should be offered in India?
Yes
No Answer
9%
91%
• 91% considers that specialist real estate education should
be offered in India
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Role of private sector in development and delivery of
Real Estate education in India?
• 100% respondents considers their role in development
& delivery of real estate education
• 90% willing to participate in development & delivery of
real estate education
• 82% willing to sponsor their employees for real estate
education
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Does your company encourage real estate employees
to obtain membership of professional bodies?
No answer
Yes (Y)
No (N)
9%
36%
55%
• 55% encourages real estate employees to obtain
membership of professional bodies
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Key messages
• Growing need for real estate professional education in
India to support a growing economy base
• High demand and need factors for real esate
education
• Low supply of specialist professionals
• Business Schools have capacity and infrastructure to
deliver on short term basis.
• Key role for private sector
• Need for policy makers/key stakeholders to address
this issue
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