India Real Estate Report

Published 25 August 2015

  • 80 pages
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$1,295.00
India Real Estate Report

BMI View: India has a promising outlook in terms of commercial real estate investment as the barriers previously opposing FDI have been reduced through government policy updates. With the economy growing and higher consumer spending, office and retail markets are currently being supported financially, with a knock-on effect to the industrial warehouse market as online retail is seeing growth. Rental rates are either sustained or marginally increasing due supply and demand level in most locations; however risks in the marketplace are reducing over the coming years as India looks to modernise.

Growth in India's commercial real estate market will be supported by an uptick in economic growth. GDP is forecast for 4.2% y-o-y growth in 2015 which is expected to be sustained over the next 5 year with 10.5% in 2016. Growth will be supported by regulatory improvements and an increase in investment as well as strong growth in imports and exports, industrial output and services output. These improving fundamentals will boost demand for real estate, as businesses expand and their operating environment improves.

Mumbai is India's largest city and the commercial and financial centre of the country and is also home to many major operations in the fields of engineering, healthcare, IT and other complex industrial sectors. Gurgaon is a leading financial and industrial city with a close proximity to Delhi and provides a base to over 50% of the fortune 500 companies. Bangalore is a prominent location for many IT companies as the city has a long standing reputation as the high-tech centre of India. Bangalore is also recently becoming an attractive location for many foreign companies' off shore centres along with Gurgaon. Hyderabad has long since been an attractive business location in India, with many industrial companies' operations in the city. The city is garnering a reputation as an IT and technology centre with healthcare and pharmaceutical sectors also developing. Chennai is...

BMI Industry View
7
SWOT
8
Political
11
Economic
13
Industry Forecast
15
Office
17
Table: Forecast Office Rental Rates, 2015-2015 (USD per square metre per month)
18
Table: Forecast Office Net Yields, 2011-2018 (%)
18
Retail
18
Table: Forecast Retail Rents, 2015-2016 (USD per sq m per month)
19
Table: Forecast Retail Net Yields, 2011-2018 (%)
20
Industrial
20
Table: Forecast Office Rents, 2015-2016 (USD per sq m per month)
21
Table: Forecast Industrial Net Yields, 2011-2018 (%)
21
Construction And Infrastructure Forecast Scenario
22
Table: Construction And Infrastructure Industry Data (India 2012-2017)
22
Table: Construction And Infrastructure Industry Data (India 2018-2023)
23
Macroeconomic Forecasts
33
Economic Analysis
33
Investment Upturn In Good Shape
34
Exports Continue To Recover
35
Risk To Outlook
36
Table: Economic Activity (India 2009-2018)
37
Industry Risk Reward Ratings
38
Asia - Risk/Reward Index
38
Table: Asia - Real Estate Risk/Reward Index
38
India - Risk/Reward Index
39
Rewards
39
Risks
40
Market Overview
41
Mumbai
42
Gurgaon
42
Hyderabad
43
Bangalore
43
Chennai
43
Office
43
Table: Historical Rental Costs, 2013-2014 (USD per square metre per month)
44
Table: Historical Net Yields, 2013-2014 (%)
45
Table: Terms Of Rental Contract/Lease, H114
45
Retail
46
Table: Historical Rental Costs, 2013-2014 (USD per square metre per month)
49
Table: Historical Net Yields, 2012-2014 (%)
49
Table: Terms Of Rental Contract/Lease, H114
50
Industrial
50
Table: Historical Rental Costs, 2013-2014 (USD per square metre per month)
52
Table: Historical Net Yields, 2013-2014 (%)
52
Table: Terms Of Rental Contract/Lease, H114
53
Competitive Landscape
54
Office
55
Retail
57
Industrial
57
Company Profile
59
DLF
59
Sobha Ltd
61
Parsvnath Developers
63
Ambuja Cements
65
Demographic Forecast
67
Table: Population Headline Indicators (India 1990-2025)
68
Table: Key Population Ratios (India 1990-2025)
68
Table: Urban/Rural Population And Life Expectancy (India 1990-2025)
69
Table: Population By Age Group (India 1990-2025)
69
Table: Population By Age Group % (India 1990-2025)
70
Methodology
72
Industry Forecast Methodology
72
Sources
73
Risk/Reward Index Methodology
74
Table: Real Estate Risk/Reward Index Indicators
75
Table: Weighting Of Indicators
76

The India Real Estate Report features BMI Research's market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's India Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in India.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for India to test other views - a key input for successful budgeting and strategic business planning in the Indian real estate market.
  • Target business opportunities and risks in India through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our company profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 for the domestic real estate industry and for the local and global finance industry.

Indicators Include:

  • Real Estate: Office, retail and industrial real estate yields for all major cities (%); short term forecasts on minimum and maximum real estate rental prices by sub-sector (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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