Unit 1 Introduction to Real Estate PDF

L J UNIVERSITY L J Institute of Engineering & Technology, Ahmedabad Subject : Real Estate Practices Subject Code : 017095701 Unit 1: Introduction to Real Estate Faculty In-charge...

L J UNIVERSITY L J Institute of Engineering & Technology, Ahmedabad Subject : Real Estate Practices Subject Code : 017095701 Unit 1: Introduction to Real Estate Faculty In-charge Mr. Ishan Trivedi Department of Civil Engineering LJIET Email-id: [email protected]  L J UNIVERSITY Alter-Ego Statement of the Society After Religion, maximum blood has been shed for Real Estate in the history of Mankind Buildings have been considered the #AlterEgo Statement of the Society Be it the Pyramids of Egypt | Taj Mahal the Symbol of Love Super Sky Scrapers like Burj Khalifa Real Estate is and shall remain the #AlterEgo of the Society 2  L J UNIVERSITY Alter-Ego Statement of the Society First Thing that reminds you of Paris First Thing that reminds you of London 3  L J UNIVERSITY What is Real Estate? Real estate is the land and the changes that are done to that land. It also involves the rights to use and consume them. 4 L J UNIVERSITY What is Real Estate? Extends above the surface without limitation Rights that includes ownership of oil , gas and Other minerals The owner has rights to develop the surface and to use resources extracted from or near surface (Gravel, water, limestone) 5 L J UNIVERSITY What is Real Estate? 6 L J UNIVERSITY What is Real Estate? 7  L J UNIVERSITY Planning for New India Post Independence, At this juncture the country was confronted with the need to find shelter for large number of refugees from West Punjab. In absence of any semblance of established industry, it was left to the government to accommodate these displaced persons. Numerous Housing Boards were at established by the Central and State Government at various levels to create supply against this demand. But historically government bodies have been woefully short of pacifying this supply in quantity as well as quantity. 8  L J UNIVERSITY Birth of Real Estate After 1954 ‘Ownership Flats construction’ commenced its operation through private developers first in Bombay and spread to other towns in sub sequent years. 9 L J UNIVERSITY Journey of Real Estate 10  L J UNIVERSITY Current Scenario At present, approximated 80% of the organized real estate market is controlled by 20% of the organized players in the industry. On the other hand of all the real estate market in India, only20% is organized. 11  L J UNIVERSITY Investment Pattern Do you know the antient investment pattern of all our elders? 25% in current expenses 25% in growth/expansion of Business 25% in Gold/Silver (Precious Metals) 25% in Real estate (Because Real Estate is the REAL ASSET) 12  L J UNIVERSITY Segments in the Indian real estate sector R Residential space E A Commercial space L E Retail space S T Hospitality space A T E SEZs 13  L J UNIVERSITY Growth Drivers Source: RERA IBEF Report, 2023 14 L J UNIVERSITY Current Scenario 15  L J UNIVERSITY Real Estate Market at Present 2nd highest employment generator after agriculture sector. The industry is likely to reach a size of US $ 1 trillion by 2030. Expected to contribute 13% of nation’s GDP by 2025. After Maharashtra Gujarat has the 2nd largest number of Projects registered in India since the formation of RERA. Gujarat has 11,745+ Projects Approved with an investment potential of 3.47 Lakh Crores. The key drivers for the sector are: rapid urbanization; Growth in population; Rise in disposable income; Easy availability of finance, private equity investment on rise.. Source: RERA Annual Report 2022-23 16  L J UNIVERSITY Gujarat Real Estate Real Estate Sector in Gujarat as on 31/03/2023 (FY 2022-23) 7,20,496 Units ready for Passion 1,58,185 Cr Investment 6,600 No. of Project Completed Source: RERA Annual Report 2022-23 17  L J UNIVERSITY Gujarat Real Estate Uncovered Areas - Inequitable Development We need to think of - Few real estate projects in these part, in the appropriate policies for non-metro areas of the state these areas, to prevent mass migration to the already developed urban centres and to ensure equitable development of the state. Source: RERA Annual Report 2022-23 18  L J UNIVERSITY Gujarat Real Estate FY 2022-23 Source: RERA Annual Report 2022-23 20  L J UNIVERSITY Gujarat Real Estate as on today 21  L J UNIVERSITY Project Registration, Alteration and Extension till Financial year 2022-2023 Source: RERA Annual Report 2022-23 22  L J UNIVERSITY Ahmedabad Real Estate RERA Registered Projects in Ahmedabad (Year 2022-2023) Total Project Registered in Year 2022 – 2023 : 1866 Gujarat – Total Investment INR 3,46,722 crore Ahmedabad - Total Investment INR 1,45,257 Cror Source: RERA Annual Report 2022-23 23  L J UNIVERSITY Ahmedabad - Commercial Projects Commercial Projects with Premium category 50 to >100 Crore are found highest towards the central and western part of city. Where as eastern part of the city is seeing 100 Crore are found highest towards Iscon-Ambali, Thaltej, SP Ring Road near South bopal, Shela areas. Where as eastern part of the city is seeing 100 crore Commercial & Residential Mix Development Projects are majorly concentrated on Western Part of the City compare to eastern Part of the city. S.P. Ring Road is under major upcoming development. Projects on Map – Year 2017 to 2022 26  L J UNIVERSITY Ahmedabad – Plotted Development Post covid to today plotted development has seen highest demand among all real estate categories. Plotted developments have always been considered a good investment option. The demand for plots is ever increasing due to limited supply and the consistent increase in land prices. Major Upcoming Plotted development is towards the fringes of the city. SP Ring Road Surroundings, western & Southern outskirts Villages are under major upcoming Plotted development. Projects on Map – Year 2017 to 2022 27  L J UNIVERSITY Thank You 29