Market analysis of real estate services
The relevance of research
The basis of any socio-economic system is property. The transition of society to a market basis causes its transformation. Property from the main state is transformed into a multifaceted complex consisting of federal, regional, municipal, private and other types of property. Thus, the mechanism of property management is changing, and, as a result, the market of real estate and real estate services is emerging and forming. The development of the real estate market contributed to the expansion of the real estate services market
Purpose of the study
Analysis of the state of the real estate services market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the real estate services market
Content
Part 1. Overview of the Indian real estate market
1.1. Definition and Characteristics of the Indian Real Estate Market
1.2. Dynamics of the volume of the Indian real estate market, 2014-2018
1.3. Market structure by type of service provided in India
1.4. The structure of services for the purchase and sale of real estate in the market of real estate services in the 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 real estate market in India
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 the consumption of real estate services
3.1. Estimation of consumption of real estate services 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 real estate services market until 2023
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 real estate market
1.1. Definition and Characteristics of the Indian Real Estate Market
Real estate activity is the activity of organizing and making transactions with residential and non-residential premises, buildings, ...
Directions of real estate activity: ...
As follows from ... in India, there were ... real estate agencies. The beginning of the wave of liquidations of real estate agencies fell on …
At the same time, India slowed down the pace ... If in 2014. In all regions of India, a total of …
In 2019, more than … real estate agencies, including … offices, provide real estate services in India, are included in the Unified Register of Certified Companies and Certified Real Estate Market Specialists, which are members of the Indian Guild of Realtors.
The situation in the market of real estate services ... Consider the crisis of 2015-2017. in the real estate services market, the main reasons for which were:
- ...;
- ...;
...
Until 2014 the real estate market in India was actually a market ... After the crisis, the situation ... As a result, an acute situation arose ... 2018. brought ... in the real estate market and, as a result, in the real estate services market ...
At the end of 2018 the main share of agencies (…%) in India providing real estate services falls on the … federal district and in particular on …, the second and third places are occupied by … federal district and … federal district (…%) and (…%) respectively.
1.2. Dynamics of the volume of the Indian real estate market, 2014-2018
Consider the dynamics of the market volume, according to GidMarket calculations, based on the data ..., the volume of the real estate services market in 2018. in India amounted to … billion Rs., an increase in relation to 2017. …%.
Throughout the analyzed period 2014-2018. observed ... in the real estate market in India. In 2015 the market volume increased by …% compared to 2014. and amounted to … billion Rs. In connection with ... in 2016. growth rate …%, nevertheless, the market capacity reached its … After that, in 2017. the volume of real estate services market in India …% and amounted to only … billion Rs. In 2018 …
Diagram 2. Dynamics of the volume of the real estate services market, 2014-2018
Growth in 2018 due to ... and a decrease ... In August 2017. Sberbank …% per annum for finished housing. Other banks soon followed the example of Sberbank. As a result, after several stages of decline …, by the end of September 2018. …% per annum. For comparison: at the end of 2016. mortgage rate in the secondary housing market …%.
… made housing more …, which led to … demand, but …
Another growth driver for the real estate services market in 2018. became...
1.3. Market structure by type of service provided in India
In the structure of the market of real estate services in India, services for ... real estate prevail. According to GidMarket's estimate, made on the basis of data from …, only …% falls on … real estate services, …% - services on …
A small share of services for ... real estate is due to the fact that the remuneration ...
The share in …% of … real estate services is also related to their …, as well as to the fact that high ...
1.4. The structure of services for the purchase and sale of real estate in the market of real estate services in the union territories
Let us consider the structure of the main type of services for the sale and purchase of real estate provided by real estate agencies, which accounts for …% of the Indian market in terms of money by union territories.
As expected, …% falls on the largest market among the federal districts of India – … federal district with ... The second place is occupied by … federal district with … - …%, the third is …
This trend is due to higher...
1.5. Assessment of current trends and development prospects of the studied market
Key trends in the real estate market include:…
Among the prospects of the analyzed market are: ...
1.6. Assessment of factors affecting the market
Consider the main factors affecting the market and, accordingly, demand.
Economic forces
Dynamics of India's Gross Domestic Product
GDP dynamics is a determining factor in the development of the country's economy, determines the main trends in consumer effective demand and economic activity.
Based on the data of Rosstat, the index of the physical volume of GDP relative to the three quarters of 2018. amounted to …%. According to Chart 5, you can see that for the period from 2012 to 2014. happened...
Since 2016 and currently observed...
Given the weak economic activity observed since the beginning of 2019, the Ministry of Economic Development in October 2019. upped the forecast...
...
Social factors
Population
According to Rosstat as of 01.01.2019/146,8/ . India's population was million.
In 2015-2018 In India, there was a natural decrease in the population, and the increase was provided solely by international migration. This situation limited the demand for housing.
Diagram 8. Dynamics of the population of India, 2013-2019, million people
In 2020-2025, according to the average variant of the Rosstat demographic forecast, the population of India is …%.
The number of minor children...
Real disposable income of the population
...
Political and legal factors
...
Technological factors
...
Table 1. STEP-analysis of factors influencing the market of real estate services
Macro-environment factors have both positive and negative impact on the real estate services market, however, the decisive influence is exerted by …
Economic factors like...
In the medium and long term complicate the development ...
According to the results of the STEP-analysis, the decisive influence is exerted by …
1.7. Analysis of sectoral indicators of financial and economic activity
The analysis of industry indicators of financial and economic activity of the real estate services industry was carried out according to ...
According to the results of 2018 … before tax from the sale of real estate services … Rs., …% of which falls on … the federal district. …
Together, real estate agencies of … federal districts ended 2018 with profit before tax.
… at the end of 2018 are in … values and have influenced ...
As can be seen from the dynamics of profit / loss before tax, presented in Table 2, in India as a whole, real estate agencies as an industry as a whole received ... only in 2018.
At the end of 2018, the gross profitability of the real estate services industry in India amounted to …%, which is at the level of … similar financial ratios of the Indian economy as a whole by … p.p.
During the period 2014-2017. gross margin of the real estate services industry … from …% in 2014 to …% in 2017
In 2018, the gross margin in the industry …% compared to 2017, which indicates an increase ...
As follows from the information presented in Table 4, the highest profitability of real estate services during the period under review 2014-2018. observed in … federal district, in 2018 it amounted to …%, which is …% higher than the industry average.
The lowest gross margin is in … federal districts.
Diagram 10. Profitability of profit before tax (profit of the reporting period) in the field of real estate services in comparison with all sectors of the Indian economy, 2014-2018, %
Profitability before tax in the real estate industry …% in 2016, but in the last two years … and in 2018 became …, which indicates …
In world practice, the normative value of current liquidity is considered to be a coefficient in the range from 1,5 to 2. During the period under review, the current liquidity ratio of the real estate services industry … and in 2018 amounted to …, which indicates …
The dynamics of the coefficient ..., this is due to the fact that real estate agencies in the aggregate ..., such an impact is exerted by ...
According to Indian regulations, an absolute liquidity ratio of at least 0,2 is considered normal. During 2014-2018 the absolute liquidity ratio of the real estate services industry ... and in 2018. reached ..., despite the fact that the value of the same coefficient for all industries in India was in ... This indicator says ...
In the analyzed period, business activity (average turnover period of receivables) in the field of real estate services … over the past two years, which is … a trend, and in 2018. amounted to … days days, but the actual figures of this indicator are very …, which indicates ...
For the period under review 2014-2018. indicators of financial stability (provision of own working capital) in the real estate services industry in India … standard in …% over the past four years, starting from 2015, which indicates ... If we compare the financial stability ratio of the real estate services industry with the same indicator for all industries in India , then we see that with the overall Indian indicator for all industries is in ...
Part 2. Competitive analysis in the real estate market in India
2.1. Major players in the market
The real estate market in India is characterized by a low level of ... (a large number of ...).
2.2. Market shares of the largest competitors
Conducting a competitive analysis in the real estate services market is complicated by the fact that networks are represented ... Many networks are ..., where agencies providing real estate services are included in the network, but are ...
Thus, the study was conducted based on the use by companies of ..., as well as using the indicator - ...
Diagram 14. Market shares by revenue of real estate market operators in 2018, %
According to GidMarket, the leader of the real estate services market in India is the company “…”, which occupies a niche of …, which accounts for …% of the market share in terms of revenue in 2018, in second place … with a market share of …%.
Third place is…
Rounding out the top five...
...
2.3. Profiles of major players
Company ""…""
...
Table 7. Basic information about participant No. 1 of the real estate services market
Provides services…
According to GidMarket, the total revenue of the TOP-5 largest operators of the real estate services market in India in 2018 amounted to … million Rs. For the period 2014-2018. the revenues of the five largest real estate market operators increased by …%, mainly due to …
The largest market shares come from companies that ...
Higher revenue growth rates of the largest operators in the real estate services market relative to … allow us to conclude that there is … a weak force in the real estate services market in India.
Part 3. Analysis of the consumption of real estate services
3.1. Estimation of consumption of real estate services per capita
Estimation of the volume of consumption of real estate services in India per capita was made by GidMarket on the basis of the ratio of ... to the number of ...
As can be seen from the diagram, the consumption of real estate services in India … from 2014 to 2016. from … to … Rs/person, … in 2017 to -… Rs/person and slightly …
3.2. Market Saturation and Estimated Market Potential in India
The capacity of the real estate services market in India is estimated by GidMarket experts at …% in 2020 or more than … billion Rs. in 2018 prices on condition …
Forecast ..., because …
The current inflation is now ... and is about ...%, “We see that about the inflationary factors of the end of 2018 - the beginning of 2019 ...
...
The dynamics of the rate observed in 2019 will form … for housing under construction and support the launch of …
...
3.3. Description of consumer preferences
Based on the study of preferences conducted by ..., the following conclusions can be drawn about the preferences of consumers in the market for the purchase and sale of real estate and real estate services:
1. A small amount ...
2. Efficient…
3. ...
If we talk about the preferences of clients in real estate services, according to the results of the marketing research of the company …, most often clients choose a real estate company on the basis of … (…%), slightly less respondents take into account … and …% attracts …
The decrease in demand for real estate services is also influenced by the change in …
Among other things, the development of mortgages has led to the fact that buyers trust …
3.4. Price analysis
The dynamics of prices for real estate services is primarily influenced by ... factors, as well as factors that limit demand ..
...
Depending on the region and the size of the settlement, the cost of real estate services varies from …% to …% of the property value. The calculation of the average cost for real estate services was carried out by GidMarket based on …
On the whole in India, the average cost of real estate services in the primary real estate market is … thousand Rs. per m2 in the 1st half of 2019 The largest increase in average prices for real estate services occurred in … in the primary market, due to the realization of pent-up demand due to the possible …
Diagram 18. Average prices for real estate services in the Union Territories per m2 in the primary market, thousand Rs.
From the point of view of GidMarket analysts, the cost of real estate in the primary market is somewhat …, and in the second half of 2019 and beyond, they will be adjusted …
In the secondary real estate market, the situation is as follows, prices per m2 for secondary housing increased ..., except for ... the Union Territories, which led to ... In general, in India it amounted to ... thousand Rs. per m2.
Part 4. Assessment of factors of investment attractiveness of the market
… factors of the investment climate in the real estate services market of India dominate over ... A comprehensive assessment of the factors of investment attractiveness is ... points - ... investment climate.
The most significant negative factors
...
The most significant positive factors
...
Part 5. Forecast for the development of the real estate services market until 2023
...
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
...
Diagrams
Diagram 1. Market structure of agencies providing real estate services by federal districts, %
Diagram 2. Dynamics of the volume of the real estate services market, 2014-2018
Diagram 3. The structure of the market of real estate services by type,%
Diagram 4. The structure of the provision of real estate services in India by Union Territories, %
Diagram 5. Dynamics of India's GDP, in 2012-2019 (forecast), % to the previous year
Diagram 6. Index of physical volume of GDP and gross value added in the industry ""real estate activities"" for the 1st half of 2018-2019, % to the corresponding period of the previous year
Chart 7. Monthly dynamics of the average monthly exchange rate of the US dollar against the rupee, 2014-2019 (October), Rs. for 1 US dollar
Diagram 8. Dynamics of the population of India, 2012-2019, million people
Diagram 9. Dynamics of real disposable income of the population in India, % to the previous year
Diagram 10. Profitability of profit before tax (profit of the reporting period) in the field of real estate services in comparison with all sectors of the Indian economy, 2014-2018, %
Diagram 11. Current liquidity (total coverage) in the field of real estate services for 2014-2018, times
Diagram 12. Business activity (average period of receivables turnover) in the field of real estate services, for 2014-2018, days days
Diagram 13. Financial stability (security of own working capital) in the field of real estate services, in comparison with all sectors of the Indian economy, 2014-2018, %
Diagram 14. Market shares by revenue of real estate market operators in 2018, %
Diagram 15. Dynamics of the total revenue of the largest operators of the real estate services market (TOP-5) in India, 2014-2018, million Rs.
Diagram 16. Consumption of real estate services per capita, 2014-2018, Rs./person
Diagram 17. Consumer price indices for real estate services in India in 2014-2018, %
Diagram 18. Average prices for real estate services in the Union Territories per m2 in the primary market, thousand Rs.
Diagram 19. Average prices for real estate services in the Union Territories per m2 in the secondary market, thousand Rs.
Diagram 20. Forecast of the volume of commissioning of multi-apartment residential buildings by developers, mln m2
Diagram 21. Forecast of the volume of the real estate services market in 2019-2023
Tables
Table 1. STEP-analysis of factors influencing the market of real estate services
Table 2. Profit (loss) from the sale of real estate services in the Union Territories of India, 2014-2018, billion Rs.
Table 3. Gross margin of the real estate services industry in comparison with all sectors of the Indian economy, 2014-2018, %
Table 4. Gross margin of the real estate services industry in the Union Territories of India, 2014-2018, %
Table 5. Absolute liquidity in real estate services in comparison with all sectors of the Indian economy, 2014-2018, times
Table 6. Main companies participating in the real estate services market in 2018
Table 7. Basic information about participant No. 1 of the real estate services market
Table 8. Basic information about participant No. 2 of the real estate services market
Table 9. Basic information about participant No. 3 of the real estate services market
Table 10. Basic information about participant No. 4 of the real estate services market
Table 11. Basic information about participant No. 5 of the real estate services market
Table 12. Assessment of factors of investment attractiveness of the real estate services market
All reports