Analysis of the commercial real estate construction market in India
The relevance of research
Commercial real estate is buildings, structures or land used for commercial activities with the subsequent derivation of permanent profit or capital gains, rental income, investment income.
Purpose of the study
Analysis of the state of the commercial real estate market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the commercial real estate market.
Content
PART 1. OVERVIEW OF THE RUSSIAN MARKET OF CONSTRUCTION OF COMMERCIAL REAL ESTATE
1.1. Definition and Characteristics of the Indian Commercial Property Construction Market
1.2. Dynamics of the volume of the commercial real estate construction market, 2012-2016
1.3. Market structure by type of objects in India
1.4. Structure of the commercial real estate construction market by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
PART 2. COMPETITIVE ANALYSIS IN THE COMMERCIAL REAL ESTATE CONSTRUCTION MARKET
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
PART 3. COMMERCIAL REAL ESTATE CONSUMPTION ANALYSIS. IDENTIFICATION OF POTENTIAL CLIENTS INTERESTED IN THE SERVICE
3.1. Estimation of consumption of commercial real estate per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
PART 4. ASSESSMENT OF FACTORS OF INVESTMENT ATTRACTIVENESS OF THE MARKET
PART 5. COMMERCIAL REAL ESTATE CONSTRUCTION MARKET FORECAST UP TO 2021
PART 6. CONCLUSIONS ON THE PERSPECTIVE OF CREATING ENTERPRISES IN THE STUDYED AREA AND RECOMMENDATIONS TO THE ACTIVE MARKET OPERATORS
Research excerpt
Part 1. OVERVIEW OF THE RUSSIAN MARKET OF CONSTRUCTION OF COMMERCIAL REAL ESTATE
1.1. Definition and Characteristics of the Indian Commercial Property Construction Market
Consider the characteristics and features of the Indian commercial real estate market.
Commercial real estate is buildings, structures or land used for commercial activities with the subsequent derivation of permanent profit or capital gains, rental income, investment income.
1.2. Dynamics of the volume of the commercial real estate construction market, 2012-2016
Consider the dynamics of the volume of the commercial real estate market in India.
According to Rosstat data, commissioning of commercial buildings in 2012 amounted to … mln m2. In 2013-2014 the input volume was actively growing – in 2013 by … % and in 2014 by … %. As a result, at the end of 2014, the market volume reached a record level of … mln m2. But, starting from 2015, the trend reversed, and the dynamics went into negative territory. In 2015, the rate of commissioning reduction amounted to … %, in 2016 – … %. Thus, in 2016 the market volume reached … mln m2.
According to the results of 9 months of 2017, the rate of commissioning decline accelerated and amounted to … % compared to the corresponding period of 2016.
Diagram 1. Dynamics of the volume of the Indian commercial real estate market, 2012 - 9 months 2017, mln m2
1.3. Market structure by type of objects in India
At the end of 2016, in the total volume of construction of commercial real estate in India, …% fell on shopping centers and multifunctional centers with a retail component. The share of … was 7,2%, and … – 16,0%. Other commercial real estate accounted for 42,3% of total construction in 2016.
Diagram 3. Structure of the Indian commercial real estate market by types of objects, 2016, %
1.4. Structure of the commercial real estate construction market by Union Territories
At the end of 2016, the largest volume of commissioning of commercial real estate fell on …
1.5. Assessment of current trends and development prospects of the studied market
In 2017, the commercial real estate market will remain under the influence of negative external factors that negatively affect all sectors of the country's economy.
Analysts of the commercial property market identify five key trends that will be characteristic of the Indian commercial property market in 2017: …
1.6. Assessment of factors affecting the market
Consider the main factors affecting the market and, accordingly, the demand for commercial real estate.
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1.7. Analysis of sectoral indicators of financial and economic activity
The Federal State Statistics Service does not single out the type of activity ""Construction of commercial real estate"", in this regard, GidMarket analysts analyzed the indicators for the type of activity ""Construction of residential and non-residential buildings"", adjusted for industry specifics of the commercial real estate market...
Part 2. COMPETITIVE ANALYSIS IN THE COMMERCIAL REAL ESTATE CONSTRUCTION MARKET
2.1. Major players in the market
The largest players in the commercial real estate construction market include: “…”, “…”, “…”, “…”, “…”.
The commercial real estate construction market is not concentrated: the TOP-5 accounts for slightly more than …% of the market, … the largest operators occupy slightly more than 50% of the market volume. Information on the largest players is presented in the table below.
Table 9. Main companies participating in the commercial real estate market in 2016
2.2. Market shares of the largest competitors
When assessing the share of the largest competitors in the Indian commercial real estate market, we considered companies whose projects were implemented in 2016 and are expected to be commissioned in 2017. these segments are the largest in the commercial real estate industry.
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2.3. Profiles of major players
Diagram 16. Dynamics of the total revenue of the largest operators of the commercial real estate market (TOP-5) in India, 2012-2016, billion Rs.
Part 3. ANALYSIS OF THE CONSUMPTION OF COMMERCIAL REAL ESTATE. IDENTIFICATION OF POTENTIAL CLIENTS INTERESTED IN THE SERVICE
3.1. Estimation of consumption of commercial real estate per capita
Against the backdrop of a gradual recovery of macroeconomic indicators and the strengthening of the rupee, the investment market is gradually increasing its attractiveness, which is expressed both in the growth of interest from potential buyers and in the willingness of sellers to offer premium assets on the market.
Diagram 17. Consumption of commercial real estate per capita, 2012-2016, Rs./person
3.2. Market Saturation and Estimated Market Potential in India
According to experts, the amount of equity capital available for investing in commercial real estate is about … billion dollars …
3.3. Description of consumer preferences
The leaders in terms of investment in 2016 were … (44%) and … (17%). At the same time, the share of hotels this year is a record high over the past 10 years.
3.4. Price analysis
Consumer prices for commercial real estate in India have been on an upward trend throughout 2012-2015, with 2014 seeing the sharpest spike…
Part 4. ASSESSMENT OF FACTORS OF INVESTMENT ATTRACTIVENESS OF THE MARKET
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Part 5. FORECAST OF THE DEVELOPMENT OF THE MARKET OF COMMERCIAL REAL ESTATE UNTIL 2021
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Part 6. CONCLUSIONS ON THE PERSPECTIVE OF CREATING ENTERPRISES IN THE STUDYED AREA AND RECOMMENDATIONS TO THE ACTIVE MARKET OPERATORS
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Diagrams
Diagram 1. Dynamics of the volume of the Indian commercial real estate market, 2012 - 9 months 2017, mln m2
Diagram 2. Dynamics of the volume of the Indian commercial real estate market in 2012 - 9 months of 2017, billion Rs.
Diagram 3. Structure of the Indian commercial real estate market by types of objects, 2016, %
Diagram 4. Structure of the commercial real estate market in India by union territories, 2016, %
Diagram 5. Structure of the commercial real estate market in India by region, 2016, %
Diagram 6. Dynamics of India's GDP, in % to the previous year, 2007-2017
Diagram 7. Turnover of retail trade in India in comparable prices, % to the previous year, 2007-9 months. 2017
Chart 8. Monthly dynamics of the US dollar against the rupee, January 2015 - November 2017, rupees per 1 US dollar
Diagram 9. Dynamics of the population of India, 2010-2017, million people
Diagram 10. Dynamics of real incomes of the population of India, 2010 - 6 months of 2017,% of the previous period
Diagram 11. Profitability before tax (profit of the reporting period) in the field of commercial real estate in comparison with all sectors of the Indian economy, 2012-2016, %
Diagram 12. Current liquidity (total coverage) in the field of commercial real estate for 2012-2016, times
Diagram 13. Business activity (average turnover period of receivables) in the field of commercial real estate, for 2012-2016, days days
Diagram 14. Financial stability (security of own working capital) in the field of commercial real estate in comparison with all sectors of the Indian economy, 2012-2016, %
Diagram 15. Shares of the largest competitors in the Indian commercial real estate market in 2016-2017
Diagram 16. Dynamics of the total revenue of the largest operators of the commercial real estate market (TOP-5) in India, 2012-2016, billion Rs.
Diagram 17. Consumption of commercial real estate per capita, 2012-2016, Rs./person
Chart 18. Structure of investment in commercial real estate in India, 2016
Diagram 19. Forecast of the volume of the commercial real estate market in India in 2017-2021, mln m2
Tables
Table 1. Classification of office real estate objects
Table 2. Classification of retail real estate objects
Table 3. Classification of warehouse real estate objects
Table 4. Weighted average interest rates on loans provided by credit institutions to non-financial institutions in rupees, Jan. 2012-Jan. 2017, % per annum
Table 5. STEP analysis of factors affecting the commercial real estate market in India
Table 6. Profit (loss) from the sale of commercial real estate in the Union Territories of India, 2012-2016, million Rs.
Table 7. Gross margin of the commercial real estate industry in comparison with all sectors of the Indian economy, 2012-2016, %
Table 8. Absolute liquidity in commercial real estate in comparison with all sectors of the Indian economy, 2012-2016, times
Table 9. Main companies participating in the commercial real estate market in 2016
Table 10. Basic information about the participant ""Hals-Development"" of the commercial real estate market
Table 11. Basic information about the Crocus Group participant in the commercial real estate market
Table 12. Basic information about the AEON Corporation participant in the commercial real estate market
Table 13. Basic information about the participant ""ENKA"" in the commercial real estate market
Table 14. Basic information about the MD Group participant in the commercial real estate market
Table 15. Key transactions in the commercial real estate market in 2016
Table 16. Consumer price indices for commercial real estate in India in 2012-2017, %
Table 17. Average prices for commercial real estate in the Union Territories, 2016
Table 18. Assessment of factors of investment attractiveness of the Indian commercial real estate market
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