CONTENTS 1 Study Framework 21 1.1 Introduction 23 1.2 Need for the study 24 1.3 Research questions 25 1.4 Aim 25 1.5 Objectives 26 1.6 Methodology 26 1.7 Scope & limitations 28 1.8 Relevance to planning 29 2 Background studies 31 2.1 Understanding real estate - The Concept 33 2.1.1 Real estate market classification 33 2.1.2 Real estate cycle 34 2.1.3 Key real estate players 36 2.2 Real estate investment scenarios in India 37 2.3 Why invest in Indian real estate? 43 2.4 Real estate- Indian scenario (2001- 2010) 44 2.5 Indian real estate- Riding the growth wave 45 3 Real estate finance 50 3.1 Investment options available in India 52 3.2 Major channels of financing real estate development in India 69 3.2.1 Bank Loans: 70 3.2.2 Domestic Investors: 71 3.2.3 Housing Finance Companies 71 3.2.4 External Commercial Borrowings 72 3.2.5 Private Equity Funds 73 3.2.6 Realty Funds (Domestic & International) 74 3.2.7 Foreign Direct Investments: 75 3.2.8 Qualified Institutional Placements (QIPs): 79 3.2.9 Initial Public Offerings 80 3.2.10 Real Estate Mutual Funds & Real Estate Investment Trusts 80 3.3 Investment scenario 83 4 Legal & Regulatory environment- 85 National Acts & Policies 85 4.1 Urban Land Ceiling Act, 1976 87 4.2 Land Acquisition Act, 1894 88 5 International case studies 91 5.1 Emerging Market Real Estate Investment: Investing in China, India & Brazil 93 5.2 Real Estate Investment: The Race between India and China 94 5.3 Investment Regulatory Organization of Canada (IIROC): 95 5.4 Real Estate Institute of Australia (REIA) 96 6 Stakeholders involved 106 6.1 Investors' Outlook 108 6.2 Developers' Outlook 108 7 The study area 109 7.1 National Capital Region (NCR) Delhi: 111 7.1.1 NCR Real Estate Market: 113 7.1.2 Demography and Major Infrastructure Initiatives: NCR 119 7.1.3 Gurgaon: 120 7.1.4 Faridabad: 121 7.1.5 Noida: 122 7.1.6 Ghaziabad: 123 8 Selection parameters for developers 126 8.1 Developers in Delhi NCR 128 8.2 Designing a developer's questionnaire 128 8.3 Selection of the developers 129 8.4 Criteria's for selection of the developers 129 8.5 Rating criteria's 130 8.6 Grading the developers 130 9 Investors in real estate market 135 9. Investors in real estate market 137 9.1 Designing an investor's questionnaire 137 10 Data analysis 142 10.1 Developers' analysis 144 Investors' analysis 157 10.2 Investors' analysis 159 10.3 Findings from the analysis 161 11 Conclusions 163 11. Conclusions 165 11.1 Risks involved in investment in real estate market 166 11.2 Risks to the investors 167 11.3 Challenges to the developers 167 11.4 Need for regulatory body 168 11.5 Suggestions - A way ahead 169 11.5.1 Policy initiatives 169 11.5.2 Suggestions for the regulatory body 169 11.5.3 Suggestions for the investors 170 11.5.4 Suggestions for developers 171 Bibliography 173 Annexure I- Developer's questionnaire 175 Annexure II- Investor's questionnaire 178