| Author | Chopra, Ashish |
| Call Number | AIT RSPR no.SM-07-35 |
| Subject(s) | Real estate investment--India
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| Note | A research study submitted in partial fulfillment of the requirement for the degree of Master of Business Administration in International Business |
| Publisher | Asian Institute of Technology |
| Abstract | This research study explores the investment climate in the real estate industry of India. In the recent years a significant share of global capital has found its way to the investments in emerging real estate capital markets in India. With real estate as an asset fast becoming an integral part of the global capital markets, it has become a part of main stream investment strategy in India also. In depth study has been undertaken to analyze the various investment opportunities in the Indian real estate sector and the capital market instruments that are presently available to local and foreign investors to enter this emerging asset class from an international investor's perspective. With rising investor confidence the research also discusses in detail the legal and regulatory environment that has historically affected the real estate investment and the structural reforms that are underway to make real estate investment an important asset class of equal importance to foreign investors. On the basis on secondary and primary research, the study identifies in detail key macro environment factors underpinning sudden investor participation in the real estate sector of the country like favourable demographics, a large pool of skilled labour, liberalized macroeconomic policy environment and greater foreign investment which are fast accelerating India's growth and are reflecting well on its real estate sector also. In the end the study discusses certain structural risks and makes recommendations regarding like poor infrastructure, lack of transparency, under developed capital markets, improper land titles and high transaction and other less important ones like credibility of developers and lack of benchmarking to global standards in the industry that need to addressed to make the real estate capital market in India more mature and attract more investor confidence. The study further goes on to the analysis of internal and external drivers of demand and risk and on the basis of that suggest like specialized developments for corporate sector, international product offering, investment in real estate products having less gestation time and shorter construction periods to name a few. Besides this the study also recommends certain urban, legal and financial reforms for the real estate industry like improving physical planning and infrastructure development, abolishing of land ceiling act, reducing and standardizing stamp duties on a pan- India basis, revision of corporate taxation and capital gains tax on real estate and incentives for housing sector in the medium and low end segment. |
| Year | 2007 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Paul, Himangshu |
| Examination Committee(s) | Johri, Lalit M.;Beise-Zee, Rian; |
| Scholarship Donor(s) | Republic of Korea |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007 |