Introduction
Gurgaon Manesar
Urban Complex
Location of Gurgaon district Gurgaon
➢was the first place to have formal
in Haryana. private developers involvement in
Gurgaon is a historical town, located on
National Highway No.8, about 32 km from Delhi. housing development at various
The town has a prominent place in the Nation as one levels.
of the ring towns in the Delhi Master Plan (1962). It ➢ right from assembly of land to
was a priority town for the development of the disposal & post management with
National Capital Region and is proposed to be the
Metro town by 2021 in NCR draft Plan. Its' location
plotted or built units in the NCR and
on the important National Highway, rail and road ➢has been for the longest duration
links and nearness to South Delhi provide vast of more than 3 decades since the
potentials for development. The existence of
about 500 industrial units employing about 6500
Gurgaon district and enactment of Haryana regulation of
Development of Urban Areas Act,
workers along with the related urban
development also create immense potential.
its surroundings HRDUAA (1975)
Real estate - Gurgaon
Salient Features of Gurgaon
Real estate - Gurgaon
Physical evolution of Gurgaon since 1980
1980 1990
2000 1995
Proposed Plan for 2021 A.D.
Real estate - Gurgaon
Real estate - Gurgaon
Real estate - Gurgaon
LAND USE -Subdivision as per Development plan
PROPOSEDLANDUSE-2021A.D. PROPOSED LANDUSE-2001
Area(in %OF URBANISABLE Area(in
Serial No.
Land Use Hectares) AREA Hectares)2 %2
1 Residential 14930 47.23% 6243 63.18%
2 Commercial 1404 4% 220 2.23%
3 Industrial 5441 17% 1349 13.65%
Transport &
4 Communication 4231 13% 665 6.73%
5 Public Utilities 564 2% 302 3.06%
Public & Semi
Public
6 Use(Institutional) 1630 5.16%
7 Open Spaces 2675 8.46% 363 3.67%
8 Special Zone 106 0.34% 106 1.07%
9 Defence Land 633 1.71% 633 6.41%
Total Area 31614 100.00% 9881 100.00%
Special Economic
_ _
10 Zone 4570
11 Existing Town 406 _ 406 _
12 Village Abadies 428 _ 275 _
Grand
_
Total 37069 10562
Real estate - Gurgaon
Real estate - Gurgaon
Infrastructure
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Infrastructure
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Housing Subsystems
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Real estate - Gurgaon
Real estate - Gurgaon
Land Supply / share Comparison
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Periodic spread of Colonisers in Gurgaon
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Plan showing Land Share of Various Colonisers with spatial distribution
in Gurgaon Primary survey by the Author , TCPD Report,2003
Real estate - Gurgaon
Real estate
• The strong fundamentals of the Indian economy are having a
favorable impact on all asset classes of Indian real estate viz.
housing, commercial – office space and retail and hospitality.
• In recent years, the growth has spread out to tier-II and III
cities as well.
• High growth in services as well as manufacturing sector has
resulted in high demand for commercial and industrial real
estate.
• Further the economic growth has trickled down to the large
Indian middle class increasing affordability and affluence.
Improving living standards are driving the demand for better
quality housing and urban infrastructure.
Real estate - Gurgaon
Drivers for Growth of
Real Estate
&
Construction
Real estate - Gurgaon
Rising
Tourism
Rise Of Real Decline of
Middle Estate Joint Families
Class
Easy Availability
of Finance
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Fiscal
Policy
Real Strong
Rising FDI Estate Demographics
Rise of
Middle
Class
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First Time
Buyers
Medical Real International
Tourism Estate Tourism
Developme
nt of new
Stream of
Business
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Overview of India Infrastructure
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Real estate - Gurgaon
Real estate - Gurgaon
Special Economic Zones
OBJECTIVES
Generation of Promotion of exports
additional economic of goods and
activities. services.
Promotion of Development of
Creation of
investments from infrastructure
employment
domestic and foreign facilities in the
opportunities.
sources. country.
Real estate - Gurgaon
Real estate - Gurgaon
Govt. Initiatives and Policy
Range of
There has been Government
a drastic benefits &
Liberalization
curtailment in Reforms in the incentives
of FDI rules and
restrictive Integrated including
the emergence
policies such as Township residential tax
of real estate
the Urban Land Policy. breaks and the
funds.
Ceiling and Special
Regulation Act. Economic
Zones.
Real estate - Gurgaon
Major Players in Real Estate
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DLF Group
Ansals
Parsavnath Developers
Unitech Group
K. Raheja
Real estate - Gurgaon
DLF Group
Real estate - Gurgaon
DLF Group
Founded in 1946
DLF Group is one of the biggest real estate giants
Built many high-quality buildings across the country,
specifically in Gurgaon
Tied up with Hilton Group to build whopping 100 hotels in
India over the next few years.
In current expansion plans, DLF has over 425 million sq. ft. of
development across its businesses, including developed, on-
going and planned projects.
Spread over 32 cities, mostly in metros and key urban areas
across India
Real estate - Gurgaon
ANSALS
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Ansals
• Founded by Lala Chiranji Lal Ansal
• By far most dominant activity of Ansals has been Real Estate
Promotion & Development
• company has several landmark high-rise commercial building
like Statesman House, Ambadeep, Antriksh Bhawan, Tolstoy
House, Indra Prakash, Navrang House and Ansal Bhawan
• Ansals have also completed several residential buildings like
Gauri Sadan, Upasana at Hailey Road & Dhawan Deep at
Jantar Mantar road, all in the heart of New Delhi at Connaught
Place.
Real estate - Gurgaon
• There is the most prestigious “Ansal Plaza” Shopping Mall
associated with its work
• Also it has made elite townships, Sushant Lok and Palam
Vihar in Gurgaon and several other places all over the country.
Real estate - Gurgaon
Parsavnath Developers
• It was incorporated on July 24, 1990 under the Companies Act,
1956 as Parsvnath Developers Limited.
• With more than two decades of experience in its repertoire,
the group has already stamped its presence already in
seventeen states and going Pan – India.
• It has made various developments in areas like GURGAON,
Noida, South Delhi.
Real estate - Gurgaon
Unitech Group
Plans to invest US$ 720 million in building hotels in the
country
Its partner for this venture is Marriott International.
Carved a niche for itself in India with its sprawling properties
and projects in Bangalore, Gurgaon, Noida, Greater Noida and
Kolkata
Unitech Group took over projects in International areas as well.
Actively involved in construction projects of power plants,
expressways, highways, transmission lines, classrooms,
amusement parks.
Real estate - Gurgaon
• Radisson Hotel, New Delhi has won accolades for its
wonderful infrastructure, astounding interiors, ideal location
and extra ordinary facilities for the distinguished customers.
• Rohini Amusement Park is also a creation of Unitech Group.
• The commercial complexes like Global Business Park,
Signature Towers, Unitech Business Park and Unitech Trade
Center and the launch of Millennium Plaza & Infocenter in
Gurgaon have made Unitech Builder earn a good reputation in
the industry.
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Financials Of DLF
• DLF is the market leader in this sector with net profit
of 1547 cr.
• It was way lower than its last year profit by more than
1000 cr.
• It was well supported by the timely launch of IPL.
• The share of this co. touched the all time high of 1227
in dec. 2007 which was just 6 months after its issue
and now trading at 337.
Real estate - Gurgaon
Financials Of Ansals API
• Their profit declined by 81.24% in the last
financial year over the last year.
• This is one of the badly hit company by the
economic slowdown.
• 569 is the all time high of this company in
2006 and now trading at just 10% of its all
time high.
Real estate - Gurgaon
SUBPRIME CRISIS
Bankruptcy Of
Investment Banks and
Crash of US Economy
The Housing
Bubble Burst
Investment in
Real Estate by
PE Firms
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DEVELOPMENT OF REAL
ESTATE IN INDIA
•IT Infrastructure – Temples of Modern India
•Townships
•Programming Houses
•Green Buildings
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BARRIERS IN GROWTH OF REAL
ESTATE
Skill Shortage.
Non Availability of Statistics.
Overvaluation of Property.
Highly Fragmented.
Lack of Transparency.
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Steel/brick/cement
Prices Increase by
30-35 %
Labour Rates
High Interest Rates
Escalated to 5-10 %
CONSTRUCTION
COST
Real estate - Gurgaon
FALL OF SENSEX AND REAL ESTATE
STOCKS
Rising Prices PARSAVNATH
UNITECH
DLF
Decreasing Demand
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IMPACT OF RECESSION ON
REAL ESTATE
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KEY ISSUES
Incompletion Less demand Cash
of previous Bad Debts. in all starvation.
projects. segments.
Real estate - Gurgaon
MEASURES TAKEN BY DLF
Launched Payment of Terminated
affordable Sale of Cost
short term projects with
housing properties reduction
debt by long
project. for liquidity through tight
raising long gestation
preservation. cash flow.
term debt. period.
Real estate - Gurgaon
MEASURES TAKEN BY UNITECH
QIP issuance to reduce
debt.
Reduced promoter’s
stake from 64% to
51%.
Increased confidence
with customers on
project delivery.
Major Strategic
restructuring.
Real estate - Gurgaon
SHIFT IN STRATEGY
Key Focus Areas Before Now
1. Residential Segment Primarily target luxury/upper More focus on mid and
middle income housing affordable housing segment.
segment
2. Assets and Land bank Buy predominantly Sell assets selectively and
agricultural land and build acquire land only for
land bank for projects across mid/low income housing
all segments. projects.
3. Debt Short Term maturities. Restructured to longer
maturities.
Higher proportion of Cheaper Collateralized
expensive unsecured loans. loans.
Increasing debt with more Reduced leverage.
projects.
Real estate - Gurgaon
IMPACT OF BUDGET
• Overall Impact considered to be marginally positive.
• Infrastructure investment to be raised over 9% of
GDP.
• Funding pressure on construction companies to be
eased by PPP.
• PPP infrastructure projects to be refinanced upto 60%
through IIFCL.
• Rs 39.7 billion allocated for rural housing schemes.
• Focus on providing housing to people of economic
weaker section & lower income group.
Real estate - Gurgaon
FUTURE PREDICTIONS
• Close to $7 billion to $8 billion of venture capital
expected to flow into Indian real estate market.
• A significant increase in project execution through
Public- Private-Partnerships.
• More demand for office and industrial space.
• Current levels of investments in infrastructure are not
sufficient to bridge the gap between demand and
supply.
Real estate - Gurgaon
