Analysis of the residential real estate construction market in India
The relevance of research
Housing construction is an important sector of the national economy, the dynamics of which strongly affects the growth of any economy in the world. In India, as in other countries with a historical shortage of modern housing, the growth rate of housing construction should remain on a steady positive trend for more than a decade, which will be superimposed by general fluctuations in the economy and the impact of economic policies.
Purpose of the study
Analysis of the state of the residential real estate construction market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the residential real estate construction market
Content
Part 1. Overview of the Indian residential construction market
1.1. Definition and Characteristics of the Indian Residential Construction Market
1.2. Dynamics of the volume of the residential real estate construction market, 2014-2018
1.3. Market structure by type of objects in India
1.4. Structure of the residential 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 residential 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. Analysis of residential real estate construction consumption
3.1. Estimation of the volume of consumption of construction of residential 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. Forecast for the development of the residential real estate construction market until 2021
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations to existing market operators
Research excerpt
Part 1. Overview of the Indian residential construction market
1.1 Definition and Characteristics of the Indian Residential Construction Market
Consider the characteristics and features of the Indian residential real estate construction market.
Residential real estate is a very wide segment of the modern consumer real estate market, which includes such objects as …
Housing construction is an important sector of the national economy, the dynamics of which strongly influences …
Construction volumes in India increased in 2018, which led to an increase in …
...
GidMarket analysts identify the following market features:
Among the main buyers…
...
The main demand is concentrated ...
...
1.2. Dynamics of the volume of the residential real estate construction market, 2014-2018
Consider the dynamics of the volume of the residential real estate construction market in India.
According to Rosstat, there is an annual … volume of new housing commissioning in India, with the exception of … In 2018, the indicator is …% to … million sq.m.
...
Estimation of the volume of the residential real estate construction market in monetary terms was made by GidMarket analysts based on data from …
In 2015 and 2017 noted … the volume of the residential real estate market in monetary terms, and in 2016 and 2018. indicator ... In 2018, the volume of commissioning of new housing in monetary terms …% to … billion Rs.
...
1.3. Market structure by type of objects in India
According to the … data, at the end of 2018, in the total volume of housing commissioning in India, …% accounted for multi-apartment buildings from developers, and …% - for individual housing built at the expense of the population.
Diagram 3. Structure of housing commissioning in India by types of objects, 2018, %
In 2018, almost … built housing in India accounted for … apartments (…%). Then come … apartments (…%), …(…%)…
...
At the end of 2018, … became the most popular material for housing construction in India, it accounted for … of the total commissioned volume (…%). The second place is taken by … (…%), the third – by …
...
The largest share in the total volume of housing commissioning in India is occupied by houses with ... and more floors, they accounted for ... built houses (...%). In second place are…
...
1.4. Structure of the residential real estate construction market by Union Territories
At the end of 2018, the largest volume of housing commissioning in India fell on … Union Territories (…%) and … Union Territories (…%). Together, their share amounted to ... built Indian housing. Also, the largest areas include …
...
Among the states of India, the largest volumes of residential real estate commissioning in 2018 fell on … (…%), … The share of other Indian states did not exceed …% for each. …
1.5. Assessment of current trends and development prospects of the studied market
2018 has given ... It has been a year where the demands of sellers ... and the opportunities of buyers ...
In 2019, there is a reduction in...
From July 1, 2019, Indian developers are required to…
Mortgages have traditionally been...
Property prices are on the rise...
In 2019–2020 The cost of housing in the regions of India will be …
There is a strong trend towards shifting...
...
Assessment of factors affecting the market
Consider the main factors affecting the market and, accordingly, the demand for residential real estate construction.
Economic
Data on the dynamics of GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation.
The dynamics of India's GDP is decisive in the vector of development of the entire economy of the country and determines the key trends in consumer effective demand and economic activity.
As shown in the diagram above, in 2014 there was a decrease in the annual GDP growth rate, and in 2015-2016. The dynamics of GDP has shifted ...
According to the results of 2017-2018. and H1 2019 GDP dynamics …
...
Socio-demographic
...
Political and legal
...
technological
...
Table 1. STEP analysis of factors influencing the residential real estate construction market in India
Thus, the Indian residential property construction market is experiencing ... the influence of environmental factors. A group of economic factors provides…
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 residential real estate"", in connection with this, GidMarket analysts analyzed ...
Profit (loss) from sales is revenue minus all costs associated with the sale (cost of goods sold, selling and administrative expenses). At the end of 2018, the largest income from the sale of residential real estate in India fell on … Union Territories (…%) and … Union Territories (…%). The best dynamics in 2018 compared to 2017 was observed in …
Gross margin reflects the share of revenue that is left in the enterprise as gross profit. During 2014-2018 Gross Margin of the Residential Construction Industry ...
...
Profit before tax reflects the share of revenue that remained in the enterprise as profit before tax. When analyzing this indicator, a similar situation is observed, as in …
Diagram 14. Profitability of profit before tax (profit of the reporting period) in the field of residential real estate construction in comparison with all sectors of the Indian economy, 2014-2018, %
Current liquidity characterizes the extent to which all short-term liabilities of the enterprise are secured by current assets. Shows how many rupees of current assets account for a unit of short-term liabilities. Current liquidity in the residential real estate construction industry in 2018 ...
Absolute liquidity shows what part of short-term liabilities can be repaid in the shortest possible time. During 2014-2018 in the field of residential real estate construction, this indicator is ... the level of the entire Indian economy.
...
The average period of turnover of receivables characterizes the period of settlements with buyers and customers that has developed over the period. Starting from 2014, this indicator in the field of residential real estate has been gradually …
...
The security of own working capital reflects the presence of own working capital of the enterprise, necessary for its financial stability. In the field of residential real estate construction, this indicator during 2014-2018. … the average level across the Indian economy. But it is necessary to pay attention to the fact that the financial stability of enterprises in this area annually ...
...
Thus, for 2014-2018. in the dominant majority of cases, the financial performance of the residential property construction industry has ... values relative to the Indian economy as a whole.
Part 2. Competitive analysis in the residential real estate construction market
2.1. Major players in the market
According to the results of 2018, the largest players in the residential real estate construction market include …, OOO ""…"", OOO ""…"", ...
The housing construction market is …: TOP-5 accounted for …% of the market. Information on the largest players is presented in the table below.
2.2. Market shares of the largest competitors
When assessing the share of the largest competitors in the residential real estate construction market in India, …
According to GidMarket analysts, the largest housing construction companies in India are … (…%), … (…%), …
...
2.3. Profiles of major players
Company ""…""
...
Table 6. Basic information about the participant of the XXXXX residential real estate market
Company ""…""
...
The total revenue of the largest operators of the residential real estate construction market … during 2015-2017, however, in 2018 it is …% up to … billion Rs.
Diagram 19. Dynamics of the total revenue of the largest operators of the residential real estate market (TOP-5) in India, 2014-2018, billion Rs.
Part 3. Analysis of residential real estate construction consumption
3.1. Estimation of the volume of consumption of construction of residential real estate per capita
Estimated consumption per capita is based on ... In 2015 and 2017. consumption …, and in 2016 and 2018 ... In 2018, …% to … Rs./person.
...
3.2. Market Saturation and Estimated Market Potential in India
In terms of providing the population with housing ... The housing stock in India assumes in 2018 ... m2 per Indian. For comparison, in the USA this figure is ... m2, in the UK - ... m2, in ...
...
3.3. Description of consumer preferences
...
The most important factor for consumers was ..., so answered ...% of respondents. The second most important…
Diagram 22. The most important factors for consumers when buying residential real estate, %
...
In total, in India, the majority of respondents would like to buy an apartment in …, another …% of respondents plan to purchase …
...
Among the respondents who are going to improve their living conditions, most of them plan to … (…%), another …% plan to make repairs. …% of respondents plan to build housing.
...
Taking into account the fact that developers are guided by the demand from the population, the following fact can be noted: the average area of a built apartment in India …
3.4. Price analysis
The residential property construction price index in India is characterized by … dynamics. After … in 2014, the indicator …
In 2016-2017 the average cost of construction of residential real estate …, however, in 2018 the indicator …% to … Rs./m2. By 2018, compared to 2014, the indicator is …%. In 2018, compared to 2017, the most significant …
Table 13. Average prices for construction of residential real estate in the Union Territories, 2014-2018, Rs./m2
Part 4. Assessment of factors of investment attractiveness of the market
… factors of the investment potential of the residential real estate market dominate over ... A comprehensive assessment of investment attractiveness factors amounted to … points, which indicates … the investment climate.
The most significant positive factors. …
The most significant negative factors. …
Part 5. Forecast for the development of the residential real estate construction market until 2021
...
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations to existing market operators
...
Diagrams
Diagram 1. Dynamics of the volume of the Indian residential real estate construction market, 2014-2018, mln m2
Diagram 2. Dynamics of the volume of the Indian residential real estate construction market in 2014-2018, billion Rs.
Diagram 3. Structure of housing commissioning in India by types of objects, 2018, %
Diagram 4. Housing commissioning structure in India by number of rooms, 2018, %
Diagram 5. Housing commissioning structure in India by wall material, 2018, %
Diagram 6. Structure of housing commissioning in India by number of storeys, 2018, %
Diagram 7. Structure of the residential real estate construction market in India by union territories, 2018, %
Diagram 8. Structure of the residential real estate construction market in India by region, 2018, %
Diagram 9. Dynamics of India's GDP, 2014-1H 2019, in % to the previous year
Diagram 10. Dynamics of the volume of work by type of activity ""Construction"", 2014-2018, billion Rs.
Diagram 11. Dynamics of real incomes of the population of India, 2014-1H 2019, in % of the previous period
Diagram 12. Dynamics of the weighted average mortgage rate and the volume of mortgage housing loans issued to the population, 2014-2018, trln. Rs. and %
Diagram 13. Population dynamics in India, 2014-2019, million people
Diagram 14. Profitability of profit before tax (profit of the reporting period) in the field of residential real estate construction in comparison with all sectors of the Indian economy, 2014-2018, %
Diagram 15. Liquidity ratio in the construction of residential real estate for 2014-2018, %
Diagram 16. Business activity (average receivables turnover period) in residential real estate construction, 2014-2018, days days
Diagram 17. Financial stability (security of own working capital) in the construction of residential real estate in comparison with all sectors of the Indian economy, 2014-2018, %
Diagram 18. Shares of the largest competitors in the Indian residential real estate construction market in 2018, %
Diagram 19. Dynamics of the total revenue of the largest operators of the residential real estate market (TOP-5) in India, 2014-2018, billion Rs.
Diagram 20. The volume of consumption of residential real estate per capita, 2014-2018, Rs./person
Diagram 21. Dynamics of the total area of residential premises per capita in India, 2014-2018, m2/person
Diagram 22. The most important factors for consumers when buying residential real estate, %
Diagram 23. Respondents' answers to the question: ""How do you plan to improve your living conditions?"", %
Diagram 24. Respondents' answers to the question: ""At what expense do you plan to improve your living conditions?""
Diagram 25. Respondents’ answers to the question: “Will the third quarter of 2019 be favorable for buying a home?”
Diagram 26. Dynamics of the average area of a built apartment in India, 2014-2018, m2
Diagram 27. Forecast of the volume of the residential real estate construction market in India in 2019-2023, mln m2
Tables
Table 1. STEP analysis of factors affecting the residential real estate construction market in India
Table 2. Profit (loss) from the sale of residential real estate construction in the Union Territories of India, 2014-2018, million Rs.
Table 3. Gross margin of the residential real estate construction industry in comparison with all sectors of the Indian economy, 2014-2018, %
Table 4. Absolute liquidity in residential real estate construction in comparison with all sectors of the Indian economy, 2014-2018, times
Table 5. The main companies participating in the residential real estate construction market in 2018
Table 6. Basic information about the participant of the XXXXX residential real estate market
Table 7. Basic information about the participant of the XXXXX residential real estate market
Table 8. Basic information about the participant of the XXXXX residential real estate market
Table 9. Basic information about the participant of the XXXXX residential real estate market
Table 10. Basic information about the participant of the XXXXX residential real estate market
Table 11. Respondents' answers to the question: ""What kind of housing do you plan to purchase?"" by regions of India, %
Table 12. Consumer price indices for the construction of residential real estate in India, 2014-2018, %
Table 13. Average residential real estate construction prices in the Union Territories, 2014-2018, Rs./m2
Table 14. Assessment of factors of investment attractiveness of the Indian residential real estate construction market
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