Mumbai: The total market value of under-construction projects in India—residential, commercial and retail space—has crossed $100 bn (Rs 4.5 lakh crore) for the first time in 2010, the latest Real Estate Intelligence Service (REIS) report by Jones Lang LaSalle Meghraj has shown. Of this, Mumbai, with some of the highest property prices in the world, has nearly a 40% chunk ($37 billion, or Rs 1.66 lakh crore).
"Top 100 builders are setting up 8 lakh flats in Delhi, Mumbai, Chennai, Bangalore, Kolkata, Pune and Hyderabad,'' said REIS head Abhishek Kiran Gupta. TNN '2010 real estate mkt value equal to 7% of 2009 GDP'
The market value of real estate under construction in India has increased from $69.4 billion in 2006-end to $101.3 billion in June 2010, which equals 8.2% of India's nominal GDP for 2009,'' the report said. The market value and costs of development have been estimated at prevalent property prices and costs of construction, considering the variance in asset classes and geographical locations, it added.
The residential component contributes 66% ($66.5 billion) of this $ 101.3 billion, while the rest is contributed to by commercial office and retail space combined. The premium segment comprises only 4% of the saleable area being developed, but to 24% of the market value. "While NCR-Delhi leads in terms of volume of residential properties being developed, Mumbai contributes a larger share to the market value,'' it said.
On the other hand, the market value of commercial office and retail under construction has remained range-bound during 2006-2010 due to the effect of an increase in construction activity offset by a fall in capital values. "However, the contribution of residential has amplified due to a confluence of increase in construction activity and rapid recovery of property prices,'' the report said. The market value of commercial (office and retail) real estate under construction is $34.8 billion and commercial office space under development contributes to 74% of the estimated market value being developed in the commercial sector.
"As of 2Q10, Tier I cities of Mumbai, NCR-Delhi and Bangalore contribute to 70% of the market value of underconstruction commercial office space, while Tier II cities of Chennai, Pune, Hyderabad and Kolkata contribute to 21% of the pie. Other investment grade developments in Tier III cities contribute to a mere 9% of the pan-India market value being developed in India today.''
According to the report, since 2007-08, a total foreign direct investment of $7.82 billion (over Rs 35,000 crore) has been put into housing and real estate in India.
BOOMING INDUSTRY
Market Value of Investment Grade Real Estate Under Construction as of 2010 COMMERCIAL: $ 34.8 USD billion OFFICE: $ 25.6 billion RETAIL: $ 9.2 billion RESIDENTIAL: $ 66.5 billion TOTAL: $ 101.3 billion PUTTING IT IN PERSPECTIVE
Aggregated Revenues of IT & BPO Sector (FY 2010) is $ 73.1 billion
Union Budget Central Plan Outlay (2009-10) is $ 99.5 billion
Vietnam's National GDP at current prices (2009) is $ 92.4 billion
"Top 100 builders are setting up 8 lakh flats in Delhi, Mumbai, Chennai, Bangalore, Kolkata, Pune and Hyderabad,'' said REIS head Abhishek Kiran Gupta. TNN '2010 real estate mkt value equal to 7% of 2009 GDP'
The market value of real estate under construction in India has increased from $69.4 billion in 2006-end to $101.3 billion in June 2010, which equals 8.2% of India's nominal GDP for 2009,'' the report said. The market value and costs of development have been estimated at prevalent property prices and costs of construction, considering the variance in asset classes and geographical locations, it added.
The residential component contributes 66% ($66.5 billion) of this $ 101.3 billion, while the rest is contributed to by commercial office and retail space combined. The premium segment comprises only 4% of the saleable area being developed, but to 24% of the market value. "While NCR-Delhi leads in terms of volume of residential properties being developed, Mumbai contributes a larger share to the market value,'' it said.
On the other hand, the market value of commercial office and retail under construction has remained range-bound during 2006-2010 due to the effect of an increase in construction activity offset by a fall in capital values. "However, the contribution of residential has amplified due to a confluence of increase in construction activity and rapid recovery of property prices,'' the report said. The market value of commercial (office and retail) real estate under construction is $34.8 billion and commercial office space under development contributes to 74% of the estimated market value being developed in the commercial sector.
"As of 2Q10, Tier I cities of Mumbai, NCR-Delhi and Bangalore contribute to 70% of the market value of underconstruction commercial office space, while Tier II cities of Chennai, Pune, Hyderabad and Kolkata contribute to 21% of the pie. Other investment grade developments in Tier III cities contribute to a mere 9% of the pan-India market value being developed in India today.''
According to the report, since 2007-08, a total foreign direct investment of $7.82 billion (over Rs 35,000 crore) has been put into housing and real estate in India.
BOOMING INDUSTRY
Market Value of Investment Grade Real Estate Under Construction as of 2010 COMMERCIAL: $ 34.8 USD billion OFFICE: $ 25.6 billion RETAIL: $ 9.2 billion RESIDENTIAL: $ 66.5 billion TOTAL: $ 101.3 billion PUTTING IT IN PERSPECTIVE
Aggregated Revenues of IT & BPO Sector (FY 2010) is $ 73.1 billion
Union Budget Central Plan Outlay (2009-10) is $ 99.5 billion
Vietnam's National GDP at current prices (2009) is $ 92.4 billion
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