Analysis of the residential real estate 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, housing construction growth 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 market for residential real estate products, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the market for residential real estate products.
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, 2012-2016
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 consumption of residential real estate. Identification of potential customers interested in the service
3.1. Estimation of consumption 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 for current 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 market.
Residential real estate is a very wide segment of the modern consumer real estate market, which includes such objects as apartments, houses, townhouses, cottages, mansions, estates, summer cottages, land plots for housing construction or gardening by private individuals.
The residential real estate market is characterized mainly by the volume of construction, transactions for the sale, lease, as well as financial transactions for mortgages and mortgages.
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1.2. Dynamics of the volume of the residential real estate construction market, 2012-2016
Consider the dynamics of the volume of the residential real estate market in India.
Diagram 1. Dynamics of the volume of the Indian residential real estate market, 2012 - 10 months of 2017, mln m2
1.3. Market structure by type of objects in India
At the end of 2016, 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, 2016, %
1.4. Structure of the residential real estate construction market by Union Territories
At the end of 2016, the largest volume of housing commissioning in India fell on … Union Territories (29,9%) and … Union Territories (20,2%). Together, they accounted for half of Indian housing built. Also, the largest territories include ... Union Territories (11,2%), ... Union Territories (11,1%), ... Union Territories (10,7%). Less significant input volumes were observed in … Union Territories (8,0%), … Union Territories (6,2%) and … Union Territories (2,7%)...
1.5. Assessment of current trends and development prospects of the studied market
The state of the real estate market is currently marked by a drop in sales in the primary market and a decline in prices for residential properties of the old fund, a decrease in the total number of transactions and mortgage loans issued by banks. Such trends have been formed gradually, over the past 2–3 years, due to the following reasons:…
1.6. Assessment of factors affecting the market
Consider the main factors affecting the market and, accordingly, the demand for residential real estate...
1.7. Analysis of sectoral indicators of financial and economic activity
The Federal State Statistics Service does not separate the type of activity ""Construction of residential 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-specific features of the housing market.
Diagram 14. Profitability of profit before tax (profit of the reporting period) in the field of residential real estate in comparison with all sectors of the Indian economy, 2012-2016, %
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. The considered indicator for the residential real estate industry was declining during 2012-2014, and in 2015-2016. stopped at the level ... times.
Part 2. Competitive analysis in the residential real estate construction market
2.1. Major players in the market
At the beginning of November 2017, the number of developers with residential properties in the active stage of construction is estimated at … thousand against … thousand a year earlier. Most of the housing construction companies that left the market decided to either change their type of activity or freeze the launches of new projects for an indefinite period. Many of them want to wait for a more favorable macroeconomic environment and a stable legal framework, the publication explains.
2.2. Market shares of the largest competitors
When assessing the share of the largest competitors in the Indian residential real estate market, the volumes of housing commissioning in 2016 were considered, excluding individual housing construction.
Chart 18. Shares of the largest competitors in the Indian residential real estate market in 2016
2.3. Profiles of major players
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Part 3. Analysis of consumption of residential real estate. Identification of potential customers interested in the service
3.1. Estimation of consumption of residential real estate per capita
Estimation of per capita consumption is made on the basis of housing commissioning data at purchase prices and the population of India. Thus, the maximum value of consumption was reached in 2015 and amounted to … Rs./person. At the end of 2016, per capita consumption decreased by …% to the level of … Rs./person.
Diagram 20. Consumption of residential real estate per capita, 2012-2016, Rs./person
3.2. Market Saturation and Estimated Market Potential in India
In terms of providing the population with housing (without taking into account its quality and comfort), India lags behind many countries of the world. The housing stock in India is about ... billion m2, which implies an average of ... m2 per Indian. For comparison, in the US this figure is ... m2, in the UK - ... m2, in Germany - ... m2, in China - ... m2 per person. According to the social standards approved by the UN, there should be at least ... m2 of living space per inhabitant.
Diagram 21. Dynamics of the total area of residential premises per capita in India, 2000-2015, m2/person
3.3. Description of consumer preferences
According to the Marketing Index / TGI study by TNS India, an increasing number of Indians prefer new buildings. Although in the first half of 2015, the opposite picture was observed.
Diagram 22. Purchase of an apartment over the past six months, among Indians 18+ who made transactions with an apartment, %
3.4. Price analysis
Consumer price indices for residential real estate in India are considered separately for the primary and secondary markets. Thus, since 2013, the rate of growth in prices for primary housing began to slow down and, by the end of 2016, went into negative territory. However, according to the results of 9 months of 2017, they again came out albeit in a small, but plus - …% compared to the corresponding period in 2016.
Part 4. Assessment of factors of investment attractiveness of the market
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Part 5. Forecast for the development of the residential real estate construction market until 2021
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Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
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Diagrams
Diagram 1. Dynamics of the volume of the Indian residential real estate market, 2012 - 10 months of 2017, mln m2
Diagram 2. Dynamics of the volume of the Indian residential real estate market in 2012 - 10 months of 2017, billion Rs.
Diagram 3. Structure of housing commissioning in India by types of objects, 2016, %
Diagram 4. Structure of housing commissioning in India by number of rooms, 2016
Diagram 5. Housing commissioning structure in India by wall material, 2016
Diagram 6. Structure of housing commissioning in India by number of floors, 2016
Diagram 7. Structure of the residential real estate market in India by union territories, 2016, %
Diagram 8. Structure of the residential real estate market in India by region, 2016, %
Diagram 9. Dynamics of India's GDP, in % to the previous year, 2007-2017
Diagram 10. Dynamics of the volume of work by type of activity ""Construction"", 2010 - 10 months of 2017, in% to the previous year
Diagram 11. Dynamics of real incomes of the population of India, 2010 - 6 months of 2017,% of the previous period
Diagram 12. Dynamics of the weighted average mortgage rate and the volume of mortgage housing loans issued to the population, 2010 - 10 months 2017
Diagram 13. Dynamics of the population of India, 2010-2017, million people
Diagram 14. Profitability of profit before tax (profit of the reporting period) in the field of residential real estate in comparison with all sectors of the Indian economy, 2012-2016, %
Diagram 15. Current liquidity (total coverage) in residential real estate for 2012-2016, times
Chart 16. Business activity (average turnover period of receivables) in the field of residential real estate, for 2012-2016, days days
Diagram 17. Financial stability (security of own working capital) in the field of residential real estate in comparison with all sectors of the Indian economy, 2012-2016, %
Chart 18. Shares of the largest competitors in the Indian residential real estate market in 2016
Diagram 19. Dynamics of the total revenue of the largest operators of the residential real estate market (TOP-5) in India, 2012-2016, billion Rs.
Diagram 20. Consumption of residential real estate per capita, 2012-2016, Rs./person
Diagram 21. Dynamics of the total area of residential premises per capita in India, 2000-2015, m2/person
Diagram 22. Purchase of an apartment over the past six months, among Indians 18+ who made transactions with an apartment, %
Diagram 23. Dynamics of the average area of a built apartment in India, 2012-2016, m2
Diagram 24. Forecast of the volume of the residential real estate market in India in 2017-2021, mln m2
Tables
Table 1. STEP analysis of factors affecting the residential real estate market in India
Table 2. Profit (loss) from the sale of residential real estate in the Union Territories of India, 2012-2016, million Rs.
Table 3. Gross margin of the residential real estate industry in comparison with all sectors of the Indian economy, 2012-2016, %
Table 4. Absolute liquidity in residential real estate in comparison with all sectors of the Indian economy, 2012-2016, times
Table 5. Main companies participating in the residential real estate market in 2016
Table 6. Basic information about the participant ""Selt Group Holding"" in the residential real estate market
Table 7. Basic information about the LSR Group participant in the residential real estate market
Table 8. Basic information about the participant of Absolut Group of Companies in the residential real estate market
Table 9. Basic information about the participant of the PIK Group of Companies in the residential real estate market
Table 10. Basic information about the participant of the Etalon Group of Companies in the residential real estate market
Table 11. Consumer behavior in the ""Real Estate"" category, % of the population, Indian cities over 100 thousand people.
Table 12. Consumer price indices for residential real estate in India in 2012-2017, %
Table 13. Average prices for residential real estate in the Union Territories, 9 months 2017, Rs./m2
Table 14. Assessment of factors of investment attractiveness of the Indian residential real estate market
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