Indian Real Estate -

Charting a Global
Course

The Essential Ecosystem for a Sustainable Future

  Advance - Indian Real Estate - Charting a Global Course

INFRASTRUCTURE
REGULATION
The past decade has witnessed a period of economic transformation
of the Indian Real Estate Industry. After the Global Financial Crisis,
the pace with which India bounced back as compared to most other
economies across the globe is nothing short of magnificent. The moot

INVESTMENT
point to be debated now is what next? Given the state of the Real Estate
Industry in India, are we well poised to leverage this quick recovery and
ensure that in coming 5-7 years, this industry is at par with some of the

TRANSPARENCY best in matured markets like Asia Pacific and US? A comfortable ground
that we are on today, does it allow us to strengthen our foundation and
leapfrog ahead to be recognized as one of the best? India has started
to receive similar accolades from around the world for various other
industries. Are similar accolades for the India Real Estate industry just
around the corner?

In this paper, we discuss the answer to all the above questions by

LAND
analysing the market forces that impact the dynamics of the Indian Real
Estate Ecosystem. A typical real estate ecosystem comprises of different
stakeholders that include architects, developers, government/regulatory
authorities, banks, private equity players, other funding agencies,
buyers, brokers, and property consultants.
AFFORDABILITY
For any such ecosystem to remain successful over a long term, it is
imperative that all its key industry participants are on a level playing
ground despite the changing real estate dynamics. The dynamics
in India’s real estate ecosystem is driven by ‘Extrinsic’ and ‘Intrinsic’
factors (Figure 1). While the extrinsic factors are those which impact the
SUSTAINABILITY
dynamics from outside the real estate ecosystem, the intrinsic factors
are those which impact the dynamics of the ecosystem from within.
TECHNOLOGY With a vision to drive the transformation of the country’s real estate
AND best practices to the next level, Confederation of Indian Industry (CII)
INNOVATION and Jones Lang LaSalle (JLL), through this paper, aims at gaining
perspective on factors that could turn India into a global Real Estate
Powerhouse in the next decade.

IMAGEABILITY
PROFESSIONALISM
 Advance - Indian Real Estate - Charting a Global Course 

Figure 1: Indian Real Estate Ecosystem

Sustainability

Transparency Imageability

R I N SI
Affordability NT Professionalism

C
I
INDIAN
REAL
ESTATE

T XT C
RIN SI
Investment Land
E

Technology
Regulation and
Innovation
Infrastructure

Build per the needs of the affordability pyramid

AFFORDABILITY Consider H + T affordability through Transit Oriented Development (TOD)
Maintain office rents at less than a-dollar-psf to reap IT/ITeS dividends

Improve transparency to ensure better quality products and services

TRANSPARENCY
Synergise efforts towards a transparent system and harvest collective benefits
Y
Be responsible to the environment – through resource optimisation to achieve sustainable goals
SUSTAINABILITY
Introduce sustainable concepts in each sector – from green leases to green homes

Establish unique imageability to compete as global destinations

IMAGEABILITY
Revitalise city centres to improve efficiency and imageability of prime locations

Manage real estate assets professionally – to gain from global best practices
PROFESSIONALISM
Impart training to industry personnel for achieving higher quality of products and services

Drive investment – a key externality that cuts across all the other extrinsic factors
INVESTMENT Enact practical REIT and REMF regulations to make real estate an investable asset class
Enhance sources of funding to real estate developers

Regulate to introduce accountability – within a national framework but having a local thrust
REGULATION
Create a business friendly ecosystem to facilitate fair play and encourage industry stakeholders

Streamline the procurement of land assets to reduce barriers of entry for new players
LAND
Formulate policies and framework with emphasis on transparent transaction processes

Develop infrastructure to ensure an inclusive growth

INFRASTRUCTURE
Adopt global best practices customized to the local needs

TECHNOLOGY Innovate to benchmark real estate developments to global standards

AND INNOVATION Use information technology extensively for planning in real estate
Source: Real Estate Intelligence Service (Jones Lang LaSalle)
 Advance - Indian Real Estate - Charting a Global Course

Intrinsic Factors Consider H + T affordability through Transit

Affordability
Build per the needs of the affordability pyramid
The income pyramid in India is heavy at the
bottom, with over 60% of the households earning
averagely less than INR 80,000 per year. Nearly
19% of the households (at the Bottom of the
Pyramid) can’t afford any type of housing through
their income. Another 44.6% of the households
in the Lower Middle Income Group can’t afford
a house in Tier I or II cities (Figure 2). Builders,
architects and government have to plan real estate
development, which conforms to the needs of the
income pyramid of India.
Oriented Development (TOD)
Access to transit and proximity to daily
destinations prevent the creation of low-density
spread-out urban sprawls dependent on cars.
Transit poor neighbourhoods lead to cities with
traffic congestion, long commutes, air pollution,
green house emissions and reduction in open
spaces. Dense, transit-rich communities are
“location efficient” because they connect residents
to shopping, work, and recreation while limiting
the strain on public infrastructure and natural
resources.

Figure 2: Income Groups and Housing Affordability (Based on 2008-09 Income Levels)

Income Groups Households (% Share) Per Household Income in Affordable Ticket Size for
(Thousand) 2008-09 (INR) Housing (INR)
Rich 2,424 1.0% 1,021,825 4,500,000
Higher-Middle Income 35,382 15.0% 309,950 1,350,000
Middle Income 48,434 20.6% 134,729 550,000
Lower-Middle Income - I 48,853 20.8% 79,335 250,000
Lower-Middle Income - II 55,942 23.8% 50,085 125,000
Bottom of Pyramid - I 27,462 11.7% 32,692 50,000
Bottom of Pyramid - II 16,665 7.1% 18,851 25,000

(Per household income in INR) (Number of Households)

Rich 1,021,825 2.42 million

Higher-Middle Income 309,950 35.38 million

Middle Income 134,729 48.43 million

Lower-Middle Income - I 79,335 48.85 million

Lower-Middle Income - II 50,085 55.94 million

Bottom of Pyramid - I 32,692 27.46 million

Bottom of Pyramid - II 18,851 16.67 million

Source: Consumer Pyramids, Centre for Monitoring of Indian Economy (CMIE); Real Estate Intelligence Service (Jones Lang LaSalle)
 Advance - Indian Real Estate - Charting a Global Course 

Figure 3: Residential Affordability Radar for Indian Cities

Mumbai
80
70
60
Kolkata 50 Bangalore
40
30
20
10

Hyderabad NCR
Distance from
City Centre

Pune Chennai

INR 2,000-4,000 psf INR 4,000-6,000 psf INR 6,000-8,000 psf > INR 8,000 psf

Source: Real Estate Intelligence Service (Jones Lang LaSalle), 1Q11

Note:
1. The radar shows the average distance from the city centre at which a residential property would be priced at the given
capital value ranges (See legend).
2. The city centres considered for the respective cities are as follows: Mumbai - Nariman Point; NCR - Connaught Place;
Bangalore - MG Road; Chennai - Nungambakkam; Pune - Deccan Gymkhana; Hyderabad - Begumpet and Kolkata - Park Road.

Due to lack of available land parcels within the
cities, suburbanization has accelerated in several
metropolitan areas during the past decade.
Several office, retail and residential developments
have dotted the suburban landscape. Unaffordable
land prices have resulted in ‘leapfrogging’
of residential development to even suburbs
of suburbs or exurbs. By 2012, 60% of the
operational office space in the metropolitan cities
will be at suburban locations. The retail market
has been suburbanized earlier than office, with
more than 50% of the operational retail space at
suburban locations since 2004. The residential
construction activity is even more skewed in the
metropolitan cities, with over 95% of the housing
projects being constructed at suburban locations.
With rapidly expanding city limits due to increased
suburbanisation of Indian cities, the focus of
affordability should not only consider the market
value of the products, but also the travel costs to
the workplaces, retail and recreational centres.
Housing and transportation affordability (H+T
Affordability) involves a more holistic approach
of assessing the utility of a product to the buyer
through not only the intrinsic value in terms of size
of apartment, property rate and amenities provided
but also the linkage value such as accessibility to
workplaces. Transit oriented developments involve
a mix of land uses, including commercial offices,
residential and community amenities such as
schools, hospitals and parks. They are integrated
with a well developed rail transit network to
discourage proliferation of cars.
Maintain office rents at less than a-dollar-psf to
reap IT/ITeS dividends
The emergence of information technology
industry in India during the past two decades has
contributed significantly to the growth of real estate
in several top metropolitan cities in India. Several
concessions from the government under the ambit
of Software Technology Parks of India (STPI)
 Advance - Indian Real Estate - Charting a Global Course

and Special Economic Zone (SEZ) facilitated this Transparency

growth in the past. Nearly 50% of the transactions
of investment grade office space are done by
IT/ITeS companies. While IT/ITeS industry has
necessitated higher grades of construction, it
has benefited due to the affordable rents offered
at several Tier I cities of India. Over 60% of the
operational investment grade offices in top seven
cities currently provide space at a lease rental
of less than a-dollar-per sq ft per month (or less
than INR 45 psf pm), primarily in secondary and
suburban locations. These locations offer large
land parcels that are ideal for the development of
IT/ITeS campuses (Figure 4).
With tax benefits to IT/ITeS industry ending in
the coming years, the firms shall deviate to cost
effective locations. If Indian real estate has to reap
the dividend of the IT/ITeS industry in the future,
it should maintain the dollar-psf rents for arbitrage
against other competing locations in Indonesia,
China and Philippines.
Improve transparency to ensure better quality
products and services
Is Real Estate in India a market of “lemons”1? In
information-inefficient markets, sellers tend to sell
lemons to buyers, who have lesser knowledge of
the goods than the sellers. This has an adverse
impact on the industry, as the incentive to produce
a higher quality of product is reduced. On the
other hand, high levels of transparency make
it conducive for buyers to understand the pros
and cons of a specific project and accordingly
make investment decisions. This in turn facilitates
an increase in foreign direct investment – a
powerful incentive for encouraging the free flow
of information along with the fair and consistent
application of local property laws.
Transparency of India’s real estate markets
has been gradually improving and is largely

Figure 4: Micro-Markets in India Offering Office Space at INR 25-55 psf pm (As of 1Q11)

35

30 SBD Bangalore

25
Suburbs Chennai
Stock As of 1Q11 (mn sf)

20 Whitefield NH-8 Gurgaon

Hitec City SBD Chennai
SBD Pune
15

Thane & Navi Mumbai

Noida
10

Suburbs Pune
5

-
- 50 100 150 200 250 300

Gross Rental Values (INR psf pm)

Source: Real Estate Intelligence Service (Jones Lang LaSalle), 1Q11
Note: Each dot represents a micro-market among the top seven cities of India.

1
“The Market for Lemons: Quality Uncertainty and the Market Mechanism” is a 1970 paper by the economist George Akerlof. It discusses information asymmetry, which occurs when the seller knows
more about a product than the buyer. “Lemons” in popular parlance are those sub-standard products which are passed by sellers as good ones.
 Advance - Indian Real Estate - Charting a Global Course 

driven by improvements in data availability on Synergise efforts towards a transparent

market fundamentals, the regulatory and legal system and harvest collective benefits
environment, as well as governance of listed
Transparency is the key to improve efficiencies
entities (Figure 5). The increasing presence of
in the system, which benefits all stakeholders,
international real estate developers, investors
particularly buyers. While developers should
and occupiers especially in the Tier II and Tier III
avoid misrepresentation and unfair practices,
cities has acted as a catalyst for the increase in
government needs to be unbiased and
transparency outside the Tier I cities.
participative (Figure 6).
Data on office market fundamentals is now
Appropriate indices to measure market
more comprehensive in the Tier II cities such as
fundamentals and performance is a key indicator
Hyderabad, Pune and Kolkata, as they develop
of market transparency. There is an absence
into IT/ITES and manufacturing hubs. Data
of national indices on real estate sectors, due
availability for the retail and residential sectors
to lack of market data. Some international
has improved across all tiers due to the rapid
property consultants, online real estate portals
development of the residential sector and modern
and government authorities such as National
retail formats. However, when compared to the
Housing Bank have begun providing real estate
other countries in the Asia-Pacific, Indian cities fall
market data, which is improving this facet of real
in the category of being semi-transparent. They
estate transparency. However, available data has
rank differentially on various parameters of real
a grade bias which results in the performance
estate transparency.

Figure 5: Transparency of Indian Cities by Tier

Composite Performance Market Listed Vehicles Legal & Transaction

Management Fundamentals Regulatory Process

I II III I II III I II III I II III I II III I II III

1

2
INCREASING TRANSPARENCY

Source: Global Real Estate Transparency Index 2010, Jones Lang LaSalle
Note: Tier I cities – Mumbai, Delhi, Bangalore and Chennai. Tier II cities – Hyderabad, Kolkata and Pune. Tier III cities – 30 other prominent Indian cities
 Advance - Indian Real Estate - Charting a Global Course

and fundamentals of investment grade assets
being reported. Also, there is a tier bias since
there is relatively more transparency in the tier
I and II markets and lesser in tier III cities. The
transparency also differs by sectors as residential
market has relatively more transparency, when
compared to office and retail transactions.
Real estate sector in India is subject to multiple
taxes such as corporate tax, service tax, minimum
alternate tax, value added tax, stamp duty,
property tax etc. Although there is transparency
in terms of the enactment of legislations, certain
key areas such as evaluation of property tax is a
significant concern as reliable and easy methods
of its calculation is not available. Also, there have
been certain disputes in the taxes being levied
onto real estate developers and buyers. Moreover,
such regulations also differ between states. With
the possible introduction of a single uniform GST
(Goods and Services Tax) in FY 2011-2012,
several of these issues pertaining to multiplicity of
taxes and even double taxation will be resolved.
The payment of unaccounted and protection
money is also a key lacunae in the transaction
process. There are legislations to regulate foreign
investment in the sector, which are progressively
being relaxed to cater to the increased demands
for funding in the sector.

Figure 6: Role of Stakeholders in a Transparent Ecosystem

Products Approvals and Taxation

Proper representation of product quality, area, amenities, Streamlined and transparent approval process to reduce
location, efficiency and other project characteristics that project costs. Formulate effective simple taxation rules to
influence buying decision. avoid double taxation.
Redressal Mechanisms
Services Setup an effective grievance redressal mechanism for
Provide information regarding project progress, all interested stakeholders.
approvals, registration and transfer processes and Transaction Records
maintenance. Make transaction records available for a
transparent information flow to buyers and
Performance Reporting
GO
RS

investors.
PE

Report correct performance of the

VE

Development Plans
LO

RN

project in terms of sales and Ensure civil participation in develop-

VE

ME

construction. ment plans to address concerns

DE

NT

and requirements of citizens.

REAL ESTATE
TRANSPARENCY

Services Accounted Purchases

FI
NA

Provide an objective and Should purchase real estate

NC

unbiased service to buyers and

S

through accounted means

R
IN

YE

developers.
G

BU
AG

Information Seeking and Distribution

EN

Cost of Funding Seek information through multiple sources and

CI

Maintain the right cost of funding to buyers and relay right information to other interested parties
ES

developers to ensure smooth completion of real

estate projects. Reporting
Report income and taxes on properties accurately, following
Credibility Reporting
laws and regulations
Report credibility ratings of developers and buyers to
reduce transaction risks

Source: Real Estate Intelligence Service (Jones Lang LaSalle)

 Advance - Indian Real Estate - Charting a Global Course 

Sustainability Government of India has initiated certain steps

towards a sustainability led industry. The Bureau
Be responsible to the environment – through
resource optimisation to achieve sustainable of Indian Standards (BIS) has developed the
goals Energy Conservation Building Code (ECBC),
which specifies the energy performance
According to an analysis done by Ernest Orlando
requirements for all commercial buildings that are
Lawrence Berkeley National Laboratory, electricity
to be constructed in India.
consumption in India is expected to increase
fast, driven by the demand of the residential Government of India has proposed to lead
and commercial sectors that add to the already by example and develop all public buildings
increasing demand from the industrial sectors.
The residential sector will contribute nearly 48%
Figure 7: Projected Electricity Consumption in India in 2020: Real Estate Industry
of the projected electricity consumption in India in will be a Major Contributor
2020, increasing from 33% recorded during 2005
(Figure 7). Per household electricity consumption Services, 13% Agricultural Pumping, 1%
is likely to quadruple in the 20 years between 2000
Residential Fans, 7%
and 2020. Services, which includes office, retail
and hospitality industry is projected to contribute Other Industries, 15% Residential
Television, 3%
nearly 13% of the total electricity consumption in
Residential
2020. Rising energy needs in India have made Refrigeration, 5%
sustainability in real estate an imperative necessity Ammonia, 1%

rather than an option. Aluminium, 3%

Cement, 1%
India’s green real estate footprint has been Residential Other
Steel, 7% Appliances, 17%
growing exponentially from 0.02 million sq ft
Public Transport, 1%
in 2004 to over 23 million sq ft of green space Freight Transport, 1%
operational in various cities of India in 2009. Residential Lighting, 16%
However, this growth is not homogeneous across Source: India Energy Outlook: End Use Demand in India to 2020, Ernest Orlando Lawrence Berkeley National
Laboratory, January 2009
the country. The top seven cities – Chennai,
Mumbai, Hyderabad, NCR, Bangalore, Pune and
Figure 8: Number of LEED Certified and Pre-Certified Projects (As of 2010)
Kolkata are ahead in the race towards a greener
footprint (Figure 8). Others, 18

India currently has two major rating systems for

Bhubaneshwar, 2 Chennai, 26
energy efficiency in building design – LEED India,
Kochi, 2
managed by the Indian Green Building Council
Sriperumbudur, 3
(IGBC); and Green Rating for Integrated Habitat
Kolkata, 7
Assessment (GRIHA), a system developed by Mumbai
The Energy and Research Institute (TERI) and Metropolitan
Region, 19
the Ministry of New and Renewable Energy Pune, 10
(MNRE). The GRIHA rating system is gradually
strengthening its presence along with the more
Bangalore, 11
popular LEED India. By April 2011, five projects Hyderabad, 15
have been rated by GRIHA and 108 projects
National Capital Region
across industrial, commercial and residential (Delhi), 13
sectors are registered and being evaluated.
Source: Indian Green Building Council (IGBC), December 2010
Apart from the rating systems being put in place, Note: The number of projects includes New Construction, Core and Shell, Existing Buildings & Green Homes but
excludes Commercial Interior Projects
10 Advance - Indian Real Estate - Charting a Global Course
Inclusion of mandatory
sustainable norms
and directives in the
development control
regulations will ensure
the development of low
energy city envelopes.
Since the largest
contributor to the
demand for electricity in
India is the residential
sector, it is imperative
that both government
and builders focus on
building a sustainable
housing sector, banking
on low energy needs.
constructed in future as energy efficient spaces.
Government of Maharashtra is considering the
proposal to provide both financial and non-
financial incentives including higher Floor Space
Index, reduction in consent fee, rationalization of
property tax and reduction in state taxes including
VAT and Octroi and other incentives, for the
development of green projects in the state. Apart
from Maharashtra, several state governments
are planning to develop their own green building
byelaws.
Builders’ commitment to respond to the initiatives
taken by the government would lead to inclusion
of more green buildings to their portfolio. Also,
they are becoming active participants in guiding
the government towards the enactment of these
byelaws, since they have a better understanding
of the ground realities.
Introduce sustainable concepts in each sector
– from green leases to green homes
A sustainable lease, often referred to as a ‘green
lease’ is any lease that has a sustainability
outcome built into it. This can include criteria
around energy, waste and water. The introduction
of these sustainability criteria does not replace the
need to consider the implications of the base lease
clauses. Essentially, the green lease schedule
reflects the parties’ desire to improve and be
accountable for sustainability in the building.
A sustainable lease meets the unique objectives
and challenges faced for every individual situation
reflecting the profile of the building, current
building performance, willingness of parties to
share savings in outgoings and the intended use
of the space.
Inclusion of mandatory sustainable norms and
directives in the development control regulations
will ensure the development of low energy city
envelopes. Since the largest contributor to the
demand for electricity in India is the residential
sector, it is imperative that both government and
builders focus on building a sustainable housing
sector, banking on low energy needs. Indian
Green Building Council (IGBC) recently rolled out
Green Homes, which is its first rating programme,
exclusively for the residential sector. Also, the
IGBC Green Townships Rating System, a pilot
version of which has been launched, should be
beneficial at a larger scale for certifying residential
townships.
Imageability
Establish unique imageability to compete as
global destinations
In his most important work, The Image of the City
published in 1960, Kevin Lynch has studied how
users perceive and organize spatial information as
they navigate through cities. According to Lynch,
city dwellers and visitors form mental maps with
five elements:
• Paths, the streets, sidewalks, trails, and other
channels in which people travel;
• Edges, perceived boundaries such as walls,
buildings, and shorelines;
• Districts, relatively large sections of the city
distinguished by some identity or character;
• Nodes, focal points, intersections or loci;
• Landmarks, readily identifiable objects which
serve as external reference points.
From Vastu to Vistas, Indian architecture has
come a long way in amalgamating styles and
grammar into its urban fabric. However, there is a
serious imageability crisis in the Indian cities, due
to near absence of implementation of guidelines,
if any. While Indian cities are progressing in terms
of nodes and landmarks due to iconic construction
happening at places, paths, edges and districts
require the attention of planners and designers.
Instead of following global architectural styles,
some of which are probably not appropriate for
Indian cities due to different climatic conditions,
materials of construction and cultural or aesthetic
considerations of the local city, designers should
architect an Indian image, which will create a
unique branding of the urban fabric.
Early examples of urban branding in India are
the cities of Jaipur, Jodhpur and Udaipur (all in
Rajasthan) in India, which follow distinct urban

design considerations, in their old cities. While
Jaipur is known as the Pink city due to the color of
its avenues, Jodhpur is known as the Blue city due
to the walls of the houses around the fort. Udaipur,
which is among the favourite tourist destinations
of India, is known as the city of lakes and palaces.
While traditional in nature, the architecture of
these cities conjures the image of erstwhile
kingdoms as well as the arid conditions of west
India. Chandigarh, arguably the most planned
city in India, reflects the grandeur of governance
in its public architecture, while infusing a humane
branding to its roads, residences and campuses.
Urban branding strategies are vital for
• Attracting inward investments and international
venture capital
• Attracting and retaining companies
• Attracting and retaining skilled knowledge
workers
• Attracting new citizens
• Promoting tourism
• Sales and marketing of local goods and services
Inward branding is concerned with identity building
and strengthening the pride of the residents living
in a place, thus creating an attractive environment
with the ability to maintain its residents and
business and in the long run also attract new
Figure 9: Major Indian Cities and their Urban Branding Due to Functions
Cities Urban Branding
Mumbai Financial and Entertainment Capital
New Delhi Political Capital
Bangalore Silicon Valley of India
Chennai Established IT Hub & Detroit of India
Hyderabad Established IT Hub
Gurgaon Established IT & Industrial Hub
Noida Established IT Hub
Kolkata Gateway to the East
Pune Established IT & Automotive Hub
Ahmedabad Commercial Hub in the West
Chandigarh Emerging IT Hub
Coimbatore Emerging Industrial & IT Hub
Source: Real Estate Intelligence Service (Jones Lang LaSalle)
Advance - Indian Real Estate - Charting a Global Course 11
citizens, tourists and business. Outward branding
on the other hand is concerned with external
communication and is directly related to attracting
investments, knowledge workers, visitors and
tourists to a place. Outward branding aims to help
support the sales and marketing potential of goods
and services produced in the local area.
Adapted from Image of the City (2006) by Johan
Johnson and Dominic Power
Despite the lack of urban imageability, Indian cities
have attained a brand status due to the nature
of their functions and policies (Figure 9). Further
focus is required to strengthen and diversify
branding.
Revitalise city centres to improve efficiency
and imageability of prime locations
Most of the Indian metropolitans are facing an
urban design crisis with buildings and architecture
at prime locations in these cities (closer to the city
centre) in a decrepit state. Since these buildings
and associated infrastructure were planned and
built decades ago and had minimal upgradation
over the years, they fail to meet the global Grade
A standards of real estate. Lacking features of
sustainability, there are higher costs of operations
and maintenance of these premises as well.
Despite this, they are much sought after by
tenants due to their prime location and excellent
Cities Urban Branding
Bhubaneswar Emerging IT Hub
Guwahati Education Hub
Jamshedpur Industrial Hub
Ludhiana Industrial Hub
Nashik Emerging Industrial Hub
Patna Emerging Education & Agricultural Hub
Kochi Emerging IT Hub
Nagpur Education Hub
Indore Commercial and Industrial Hub
Jaipur Tourism Hotspot
Surat Diamond Capital of India
Vishakhapatnam Emerging IT & Logistics Hub
12 Advance - Indian Real Estate - Charting a Global Course
The tide is turning tenancy. Common problems in old office building
as buildings in stock at the city centres include
newer locations are • Deteriorated facades
providing better grade • Poorly maintained common areas such as
premises, amenities lobbies and corridors
and infrastructure to the • Lack of 24/7 power back up and centralised air
tenants.There is a need conditioning
for an urban renaissance • Outdated staircases and lifts/elevators, and a
in the coming decade lack of efficient mechanisms for modification of
– in which massive the same
investment is required • Lack of new technology for building safety and
to upgrade the internal security
infrastructure of the • Poor mechanisms for energy efficiency
cities, as well as
However, the tide is turning as buildings in newer
revitalize the existing
locations are providing better grade premises,
buildings.
amenities and infrastructure to the tenants2. There
is a need for an urban renaissance in the coming
decade – in which massive investment is required
to upgrade the internal infrastructure of the cities,
as well as revitalize the existing buildings. The role
of architects and designers assumes significance
due to the heritage importance of these districts.
Several buildings were built during the colonial
period, which add to the imageability of the city.
Since most of these redevelopment or retrofitting
projects will be infill developments3, a localisation
of concepts including form, function and
sustainability is required to preserve the character
of the area, and harmonise with and complement
the existing streetscape rather than compete with
it. This ‘sympathetic infill’ is vital in providing an
imageability to Indian cities, which is lacking and
prevents them from attaining a global standard.
Professionalism
Manage real estate assets professionally - to
gain from global best practices
Professional management of real estate
encompasses a gamut of services including
positioning, zoning, promotions and marketing,
facility management and finance management.
While this will result in better services being
provided to occupiers, a direct benefit would
2
Retrofitting India’s Central Business Districts, Jones Lang LaSalle, March 2011.
3
Infill development is the development of a building among other old buildings with heritage value and character in an established streetscape.
be in reducing operational costs. Several
shopping centres and offices have begun availing
professional management services for their
operations; in view of maintaining the long term
viability and success of the asset.
International property consultants bring global
best practices for the optimization of maintenance
costs, which can typically be achieved by
• Adoption of efficient planning strategies for
achieving the optimal level of future costs and
expenses
• Optimizing the actual costs incurred for the
maintenance of the property
• Ensuring the long-term viability of the asset and
income stream associated with it.
Impart training to industry personnel for
achieving higher quality of products and
services
With a large unorganised network of real
estate brokers, construction workers and other
intermediaries in the industry, there is a need for
focused training and certification programs for
their skill upgradation.
Government of India recognises this need and
has formed the National Skill Development
Corporation (NSDC), whose objective is “to
contribute significantly to the overall target of
skilling / upskilling 500 million people in India by
2022, mainly by fostering private sector initiatives
in skill development programmes and providing
viability gap funding.” Real estate is one of the 22
focus sectors identified under NSDC. According to
the NSDC report prepared by ICRA Management
Consulting Services, nearly 25 million people shall
be employed in the real estate sector in 2022,
with the incremental human resource requirement
between 2008 and 2022 to be 14 million. The
report further observed that substantial skill
building is required at the skilled workforce level
to build capacity. This would stem from modular
courses of anywhere between 3 months to 8
months duration in areas such as carpentry,
plumbing, operations, and other occupations. It
 Advance - Indian Real Estate - Charting a Global Course 13

is also required to examine models in which such India lacks a national association which can provide
skills can be delivered to the skilled and minimally certified licenses for real estate broking and regulate
educated workforce near the construction sites. their conduct through education and ethics. This has
resulted in an unregulated and unorganised sector,
Estate agents and real estate brokers are a vital
which leads to high search time and costs for the buyer.
component of the real estate industry. However,

Figure 10: Typical Real Estate Project Lifespan and Project Life Cycle Property & Asset Management
Corresponding Property and Asset Management Value Add
Value Adds
PLANNING Operations stage expenditure can be
predicted to accurately define feasibility
Project feasibility, land procurement, finalizing
project brief, consultants, budgeting, financial
PLANNING

modeling
DESIGN Layout can be improved to prevent
additional expenditure at later stages
DESIGN

PRE - OCCUPANCY
Finalizing spatial layout, construction

MANAGEMENT
materials, development phases

PRE CONSTRUCTION Efficient property management can be

PRE CONSTRUCTION

a significant marketing USP

Tendering, site preparation, sales, promotion,
advertising, brand building
CONSTRUCTION

CONSTRUCTION Benchmarking of equipment and

operations costs along with generating
Onsite erection of the building structure, from tendering documentation for vendors
excavation to internal finishes, tendering of
PHASED OCCUPANCY

maintenance contracts, selection of equipment

PHASED OCCUPANCY Supporting transitioning of the project
including commissioning of equipment
Provisioning for ancillary services, security, etc

POST - OCCUPANCY
MAINTENANCE

MANAGEMENT
MAINTENANCE Property will be maintained efficiently
to the satisfaction of the client/tenants
Asset optimization through maintenance of
Reports are generated periodically
equipment, facility & infrastructure and rent
and analysed to attain operational cost
collection
optimisation, inventory control and
efficient vendor management

RENOVATIONS Re-assessment of existing

infrastructure
MANAGEMENT
RENOVATION

RENOVATION

Additions & alteration in the building &

infrastructure along with improvement in Renovation & capital expenditure
management techniques planning

Source: Property and Asset Management, Jones Lang LaSalle, 2009

14 Advance - Indian Real Estate - Charting a Global Course
Extrinsic Factors
Investment
Drive investment – a key externality that cuts
across all the other extrinsic factors
The market value4 of investment grade real
estate assets under construction across the three
sectors of office, retail and residential in India is
more than USD 100 billion. This fact reiterates
the importance of investment in to real estate
sector in order to ensure timely completions of the
projects which are currently under construction. A
sustained capital flow through multiple channels
including foreign players, local funding agencies/
banks, and internal accruals of the developers
is of prime importance to ensure growth of real
estate sector in India. Investment, both at a project
level as well as at a market level is imperative for
a sustained growth of real estate sector.
Investment leading to capital infusion can be done
either directly or indirectly into the real estate
ecosystem (Figure 11). While direct investments
include those initiatives leading to money flow
directly towards development of a particular real
estate asset, the indirect investments are those that
involve capital infusion towards developments that
are external to the real estate asset but yet have a
significant impact on marketability of the same.
Investment in India’s real estate market is further
driven by multiple factors which are listed below:
• Growing disposable incomes of along with
favourable demographics leading to diverse real
estate demand calls for niche / unique investment
strategy from a developer’s point of view.
• Increased focus on both traditional manufacturing
sectors as well sunshine services sectors
positions India as one of the fast emerging
economies with multiple economic drivers
resulting in need of improved thrust on
investment in to real estate.
• Rapid urbanization rate in India, lack of
availability of land within the city limits and
rise in number of nuclear families leading
to fall in density per household would result
in investment in the form of geographical
expansion of cities and product innovation
4
Retrofitting India’s Central Business Districts, Jones Lang LaSalle,
March 2011.
especially in terms of residential offerings in
the market.
• Need for global infrastructure standards which
would act as a key enabler for development of
new satellite towns and transformation of the
same in to business epicentres.
Enact practical REIT and REMF regulations to
make real estate an investable asset class
Real Estate Mutual Funds In 2008, SEBI (the apex
regulatory body in India for the securities markets)
approved the guidelines for real estate mutual
funds (REMFs). As per the guidelines, all the
schemes having an objective to invest directly or
indirectly in real estate assets or other permissible
assets are governed by the provisions and
guidelines under Securities and Exchange Board
of India (Mutual Funds) Regulations 1996.
Figure 11: Direct and Indirect Investment into Real Estate
Direct Investment Indirect Investment
(Project/Company Level) (Market Level)
Foreign Direct Investments Urban Infrastructure (JNNURM Scheme)
Private Equity Investments Public Private Partnership Models
Bank Credits Investment in Technology and Innovation
REITs / REMFs Investment in Training and Skill Development
Source: Real Estate Intelligence Service (Jones Lang LaSalle)
The key features of the guidelines are as follows:
• REMFs shall be closed end funds and its units shall be listed on a recognised
stock exchange. The net asset value (NAV) shall be declared at the close of each
business day.
• Title deeds pertaining to the real estate assets shall be kept in safe custody with
the custodian of the REMF.
• No lending or housing finance activities should be taken up by REMFs.
• The investments by an REMF are to be made in the prescribed ratios among
real estate assets, mortgage backed securities (but not in mortgages), equity
shares or debentures of companies (whether listed or not) engaged in dealing
in real estate assets or in undertaking real estate development projects and
other securities. They must invest at least 35 percent of net assets in completed
properties and at least 75 percent of net assets directly in real estate assets,
equity shares, or debentures of real estate companies engaged in real estate
development, whether listed or unlisted.
• Real estate assets may be let out or leased out if the term of such lease or letting
does not extend beyond the period of maturity of the REMF.
Real Estate Investment Trusts Under the draft
Real Estate Investment Trust (REIT) regulations,
a REIT is defined as a trust registered under the

Indian Trusts Act, 1882, and registered with SEBI,
whose objective is to organize, operate, and
manage real estate collective investments.
It is similar to REMFs in structure, except for a few
significant differences:
• REITs can invest in income generating real
estate but can acquire real estate under
construction as long as the value does not
exceed 20 percent of the total NAV.
• REITs must distribute at least 90 percent of their
annual net income after tax to unitholders and
leverage cannot exceed 20 percent of gross
assets.
REITs and REMFs would demand a greater
transparency from the real estate developers, for
appropriate and periodic valuation of assets and
investment decisions, in turn assuring a higher
transparency to the investor.
The major challenges to enactment of REIT and
REMF legislations in India is the issue over clarity
of taxation and high real estate transaction costs
in India. Government should expedite these
legislations to bring more investment into real
estate, as well as increase transparency in the
sector.
Enhance sources of funding to real estate
developers
Several developers are currently grappling with
funding issues for their ongoing projects, resulting
in execution delays. A concerted effort is required
to enhance sources of funding to real estate
developers.
Reduce bank provisioning for lending to real
estate Reserve Bank of India (RBI) has increased
provisioning for lending to real estate, which has
adversely affected the availability of bank funds
for massive amounts of real estate construction
happening in the country. Authorities should look
into reducing the provisioning for a smoother and
timely execution of realty projects.
Provide infrastructure status to housing The
Insurance Regulatory and Development Authority
(IRDA) regulations mandate insurance companies
to invest up to 15% in the social and infrastructure
5
Realty Decoded – Investing Across Borders, Ernst & Young & FICCI, 2010
Advance - Indian Real Estate - Charting a Global Course 15
sector. If the housing sector is granted While the industry
infrastructure status, it could benefit from greater participants are the
access to long-term finance5. key to ensure fair
Relax Foreign Direct Investment (FDI) norms business practices of
By lowering the minimum area requirements, their respective firms,
especially for Tier I cities, where land is not it is important for the
available in plenty, more real estate projects can government to roll out
garner funding through Foreign Direct Investment the regulatory policies
(FDI). Also, early exits should be allowed in cases through a national
where either the project has been completed or is structured framework
uninitiated due to lack of statutory clearances. which enforced at a state
Regulation or city level.
Regulate to introduce accountability – within a
national framework but having a local thrust
The Indian real estate market has taken a
paradigm shift towards a much organized future as
compared to a couple of decades ago. India has
witnessed multi-fold growth of real estate sectors
across varied asset classes such as office, retail
and residential in the past decade underpinned
by a healthy economic growth in the country.
Further, the rising inflow of global capital in to
the Indian real estate ecosystem calls for a much
transparent and liquid ways to invest. As a result,
the property firms in India are strategizing towards
strengthening their operational infrastructure,
personnel, and financial practices to be at part with
global standards. While the industry participants
are the key to ensure fair business practices
of their respective firms, it is important for the
government to roll out the regulatory policies
through a national structured framework which
enforced at a state or city level.
Government’s move to introduce market regulator
for the real estate market could lead to the following
advantages to the country’s real estate ecosystem:
• Effective single window clearances of approvals
leading to cost and time advantages to all the
key stakeholders of the industry.
• Technologically advanced, e-Governance
mechanisms to reduce barriers of entry for new
developers
• Rationalised stamp duty rates across states
through uniform stamp duty policy.
• Clear classification of real estate property as
either a product or a service to avoid double
taxation regime which in turn would result in
realistic price points to the buyers.
• Structured bank provisioning for lending to
16 Advance - Indian Real Estate - Charting a Global Course

developers to ensure timely execution of real estate, infrastructure and public services is rapidly
estate projects. increasing. India, a country where the availability of
• Deeming the real estate sector with land is scarce, is no exception to the above trend.
infrastructure status to ensure greater access to Lack of availability of land parcels in major India’s
long term finance. cities has led to the prices within the city limits to
touch record levels in the past five years. This in
• Relaxation of the foreign direct investment (FDI)
turn has driven geographical expansion of cities in
norms to ensure qualification of more projects for
to the suburbs and suburbs of suburbs or exurbs.
foreign investments primarily in the larger cities of
India where the availability of land is scarce. Land acquisition being the first step towards any
real estate development, it is of prime importance
• Streamlined procedures to relax the provisions to have a streamlined and transparent land
of real estate investment trusts (REITs) and procurement process. While still there are risks
Real Estate Mutual Funds (REMFs) would result involved in buying land in India, the investment
in adequate funding opportunities for real estate landscape in the country has significantly
developments in India. improved in the recent past. The additional issues
that owners and investors in land have to concern
Land
themselves with are those pertaining to ownership
Streamline the procurement of land assets to
reduce barriers of entry for new players titles, clarity of permitted use and fairness of
governmental bodies when land is repossessed
Land is one of the vital and indispensable for the greater public good. These risk elements,
components of any real estate development. while particular to the stakeholders of land,
Throughout the world, as economies and are by no means particular to India. Although
populations grow, the consumption of land for real developing nations are often considered to offer
an environment of greater risk in regard to these
Figure 12: Model Real Estate (Regulation of Development) Bill
elements relative to more developed nations, it is
Need for Enforcement: The regulation of activities of property developers and interesting to note the improvement that India has
builders in India is a state subject and comes under the purview of the respective made in this area.
state governments, urban local bodies (ULBs) and development authorities, under Infrastructure
the provisions of State Town and Country Planning or City Development Authority Develop infrastructure to ensure an inclusive
Acts. This has led to inconsistency, vis-a-vis rules and regulations being followed in growth
governing, constructing, purchasing, transferring and leasing of properties across
Infrastructure development, a key enabler of real
the country.
estate growth, is one of the most critical drivers of
Proposal: The Model Real Estate Regulation Bill proposes to establish a regulatory demand for real estate as it allows for geographic
authority and appellate tribunal to regulate, control and promote real estate expansion of cities. Major infrastructure initiatives
construction, keeping in view the interest of the buyer and enable smooth and that are particularly effective in this regard include
speedy construction. All properties being developed on land greater than 1,000 sq improved connectivity through road, rail and air
m or have proposed number of residential units greater than four shall come under networks, as well as the sustained availability of
the purview of the act and shall be registered with the regulatory authority. All details power and water.
regarding the property shall be maintained on a website and the promoter of the According to Goldman Sachs, India will need to
project shall be responsible for recording and entering the project details within a spend more than $1 trillion on infrastructure from
stipulated timeframe. 2010 to 2019, with roads requiring $427 billion,
Source: Draft of Model Real Estate (Regulation of Development) Bill; Real Estate Intelligence Service
(Jones Lang LaSalle)
power $288 billion and railways $281 billion.
India’s investment in infrastructure is expected to
Figure 13: Risk Elements for Land Owners & Investors be around 10% of GDP at the end of 2008–2012
Five Year Plan, as compared to the 7.5% of GDP
• Comprehending the land title documents invested in the previous plan. While there are
• Complications and lack if clarity in title deeds when it comes to strata title properties numerous infrastructure initiatives proposed by
• Lack of information on loans, liens and easements the Indian government, we have highlighted few
• Encroachment hassles and lack of title insurance of the major ones both at a country and city level
Source: Real Estate Intelligence Service (Jones Lang LaSalle) (Figure 14).
 Advance - Indian Real Estate - Charting a Global Course 17

Figure 14: Notable Central and State Infrastructure Initiatives in India

City Initiative Comments

Jawaharlal This initiative is primarily to encourage reforms and fast track planned developments in select cities. The mission is to speed
Nehru National the infrastructure initiatives and to ensure that the gaps in funding for the same are filled. Other initiatives that this mission is
Urban Renewal expected to drive would include, provision of basic services to the urban poor including security of tenure at affordable prices,
Mission improved housing, water supply and sanitation, and ensuring delivery of other existing universal services of the government for
(JNNURM) education, health and social security.
India

National Highways Authority of India commissioned the Golden Quadrilateral project to connect the four metros (Delhi, Mumbai,
National
Kolkata and Chennai). The project is under progress and is aimed at minimizing the travel time and casualties on the road. With
Highways
over 98% of the 5,846 km expressway project completed, the entire project is expected to be fully operational in the near term.
Development
The recent announcement of road transport and housing ministry to increase the per day construction of roads from 9 km to 20
Project (NHDP)
km is expected to speed up the Indian road infrastructure in the long run.
Initiated with the objective of improving connectivity and combat increasing traffic situation in Delhi city, the Delhi Metro has
Delhi Metro spread its wings to the suburbs of Gurgaon and Noida as well. It has now interconnected various parts of Delhi as well as its
suburbs and has eased traffic situation and contributed to local public transport to a great extent.
NCR

The newly made terminal of the International Airport claims to be one of the largest airports in Asia with highly increased passenger
T3 International
capacity and state of the art facilities. Equipped with a dedicated express metro line with check in facility at metro stations and soon to
Airport Terminal
be integrated domestic and international flight operations, the new terminal will give an edge to Delhi’s air travel.
Mumbai Urban This is a multi modal project initiated by Mumbai Metropolitan Region Development Authority (MMRDA) to bring about
Transport improvement in traffic and transportation situation in the MMR. MUTP envisages investment in suburban railway projects, local
Project (MUTP) bus transport, new roads, bridges, pedestrian subways and traffic management activities.
Mumbai

Aimed at improving the traffic and transportation scenario in Mumbai, Government of Maharashtra (GoM) has commenced the
Mumbai Metro Metro Rail Project in Mumbai. This is the first MRTS project in India being implemented on Public Private Partnership (PPP)
Rail Project format and is envisaged in three phases expected to be completed by 2021. Currently fist phase of the project connecting
Versova to Ghatkopar is under construction and expected to become operational by end 2011.
Owing to a rise in traffic congestion in Bangalore roads, the Government of Karnataka has initiated the metro rail project which
Bangalore
will connect the North-South and East-West parts of the city. Development of the Metro Rail Corridor is expected to drive the real
Metro Rail
Bangalore

estate market along the Metro Rail alignment on the East–West and North–South corridor of the city.
The Peripheral Ring Road is a 116-km stretch connecting the city with the periphery. About 11.5 km away from the outer ring
Peripheral Ring
road, the PRR will connect Tumkur Road, Magadi Road, Mysore Road, Bellary Road, Old Madras Road, Hosur Road and
Road (PRR)
Kanakapura Road.
With a vision to decongest the Chennai city and decentralize central business district, the Chennai Metropolitan Development
Second Master Authority (CMDA) has unveiled the Vision 2026 in the second master plan. It is aimed at strengthening the potential for growth
Chennai

Plan (SMP) in the three satellite towns of Gummidipoondi, Thiruvallur and Maraimalai Nagar and creation of new ones near Thiruporur and
near Sriperumbudur.
Aimed at easing the connectivity and traffic flow between the city centre and the fast emerging suburbs of the city, Chennai
Chennai Metro
Metro Rail work is under progress and is expected to become operational in phases in the next five to ten years.
This is a special purpose vehicle formed by the GoAP for the development of Outer Ring Road at an estimated cost of INR 3,000
Hyderabad
Crores. While the phase I of the project connecting the 22 km stretch connecting Gachibowli to Shamshabad is operational,
Growth Corridor
Hyderabad

the 140 KM stretch in the phase II to connect Narsingi, Kollur, Patancheru, Medchal, Shamirpet, Peddamberpet, Turkayamanjil,
Limited
Tukkuguda and Shamshabad is under construction.
Hyderabad Phase I of the metro rail project includes 3 lines covering a distance of around 71 km. The ground work on the project is
Metro Rail expected to commence by early January 2011 and the entire project is expected to be completed in five years
East–West corridor of Kolkata metro rail system is aimed at connecting howrah to salt lake sector V. The improvement in
Kolkata East-
connectivity in this corridor is expected to drive the real estate developments along this corridor. The metro rail alignment is
West Metro
expected to go under ground (8 km) as well on an elevated corridor (13.7 km).
Kolkata

Joka-BBD Bagh The foundation for the project was laid during September 2010. The 17-km stretch will be built at an estimated cost of more than
Metro Rail Rs 2,600 crore will connect Joka in South-24 Parganas district to BBD Bagh, the central business district of the metropolis, and
Expansion help decongesting the arterial Diamond Harbour Road.
Proposed Metro line for Pune is implemented in 2 phases. While the phase I is expected to connect PCMC to Swargate (Metro
Pune Metro Rail
Line 1-16.5 Kms), PMC Depot (Kothrud) to Ramvadi (Metro Line 2-14 Kms), the phase II is designed to link ASI to Hinjewadi (18
Connectivity
Kms.).
Pune

To avoid traffic congestion in the city the local muncipal corporation has planned a ring road for Pune city that will divert the traffic
Outer Ring of heavy duty vehicles. The length of the ring road is 169 Kms and is divided in to 4 parts, Part 1 is from Theurphata to Chimbli
Road (38 Kms), Part 2 is from Chimboli to Pirangut (46 Kms), Part 3 is from Pirangut to Shriramnagar; Part 4 is from Gogalwadi to
Theurphata. While the part 1, part 2 and part 4 is complete, the part 3 is under implementation.
Source: Real Estate Intelligence Service (Jones Lang LaSalle)
18 Advance - Indian Real Estate - Charting a Global Course
Technology and Innovation
Innovate to benchmark real estate
developments to global standards
Developing suitably priced real estate assets
depends a lot on effective planning and scheduling
of various project timelines along with a prompt
delivery. As the rates of raw materials such as
steel, cement and other building materials like tiles
and fit-outs continue to fluctuate depending on
the demand–supply situation in the commodities
market and the overall macroeconomic weather;
these can impact the delivery schedule of projects.
Therefore, it is highly imperative for developers
to ensure adherence of schedule to control costs.
This can be better achieved by utilising technology
to innovate effective methods to construct and
deliver on time.
Despite having large needs for rapid and efficient
construction techniques, the Indian construction
industry is yet to embrace pre-fabrication to the
extent practiced in the developed countries.
It has the benefit of planned mass production
under factory conditions, safe from the weather
fluctuations. Also, the economies of scale
distribute several costs to a larger number of
units. However, some of the issues that have
been cited with pre-fabrication in the past include
unavailability of skilled labour, expensive transfer
of technology, perceived downsizing of human
labour (from government’s point of view) and
simply lack of aesthetics and uniqueness due to
mass production.
However, pre-fabrication is the need of the hour
for India, especially in the low-cost housing sector,
where the targets and benefits are huge. One
of the major inputs to pre-fabrication is freight
cost, since modules have to be transported from
the factory to the site. Since there is a large
need for housing in almost every Indian city, a
decentralised network of pre-fabrication factories
can effectively reduce freight costs. Also, local
materials such as fly-ash, lime and earth can
be used extensively in pre-fabrication. While
accelerating schedule of projects, pre-fabrication
can help reduce construction costs as well and
increase affordability to the home buyer.
Value Engineering – Developer’s Tool to Ensure Optimal Cost with Enhanced
Quality
1. Effective usage of locally available materials including marginal and industrial
waste for the reduction of cost, yet maintaining the functional requirements of
buyers;
2. Rainwater harvesting, low-cost sanitation, waste-water management, and
landscaping with recycled water
3. Solar-operated street lights;
4. Main electrical equipment to be located together, which helps in further cost
reduction;
5. Trenches for electrical, data etc and cabling to take the shortest route possible;
6. Passive cooling, providing adequate natural ventilation systems to avoid forced
ventilation/pressurisation systems.
Use information technology extensively for
planning in real estate
Geographical Information Systems
Geographical Information Systems (GIS)
based planning and analysis of urban areas
will lead to a better understanding of urban
morphology, merging the exogenous factors such
as demographics, income, traffic and climate
to endogenous factors such as built and open
spaces, green cover and public amenities. Indian
real estate needs to leverage its expertise in
information technology to ensure a holistic urban
development process, which results in equitable
growth of cities.
Property Title Certification System (PTCS)
and Transaction Records One of the optional
reforms required to be undertaken by cities that
are receiving funds under Jawaharlal Nehru
National Urban Renewal Mission (JNNURM)
is the creation of Property Title Certification
System (PTCS). PTCS will be a comprehensive
database of land transaction records, utilizing
Information Technology. It shall have three
registers – register of titles, register of disputes
and register of charges and covenants, which
shall together constitute the total record of title of
all lands. It will have far reaching implications in
making the land market transparent and enabling
better policymaking and urban planning. While
none of the states have achieved this, most of
the cities have committed to a 5-7 year timeline
 Advance - Indian Real Estate - Charting a Global Course 19

to accomplish the reform, considering the vast estate market. The registration departments
amount of effort required in compiling this. should integrate these records with Geographical
Information Systems (GIS) and make it available
Another optional reform under JNNURM is
for analysis, which will enable faster and effective
the introduction of computerized process of
urban planning. The computerised records should
registration of land and property. Over half of the
also be integrated with the Unique Identification
cities had already achieved this by June 2010.
(UID) project that is currently underway, which
Government should make available the deeds
is providing a unique identification to all Indian
and titles under the ambit of ‘Right to Information
citizens. This will enable reliable identification of
(RTI)’ in order to foster transparency in the real
ownership and transfer of assets.

Authors
Himadri Mayank, Manager, Research & REIS
Himadri.Mayank@ap.jll.com
+91 22 3307 1500
Himadri Mayank joined Jones Lang LaSalle India in July 2008 and is responsible for managing the
quarterly research offering – Real Estate Intelligence Service (REIS), which tracks, analyses and
forecasts trends in office, retail and residential property sectors for Indian cities. Based out of Mumbai,
he also contributes towards regional and local research publications covering economy, sector analyses,
market forecasts and investment strategies. He holds a bachelor’s degree in Architecture from Indian
Institute of Technology Kharagpur and has four years of experience in the field of real estate. He is
pursuing the Chartered Financial Analyst (CFA) program offered by CFA Institute, Charlottesville and is a
2011 Level III CFA candidate.

Hariharan Ganesan, Manager, Research & REIS

Hariharan.Ganesan@ap.jll.com
+91 22 3307 1500
Hariharan Ganesan joined the Jones Lang LaSalle India in April 2008 and is responsible for managing
the quarterly research offering – Real Estate Intelligence Service (REIS) publications. Based in Mumbai,
he contributes to research publications on office, retail and residential real estate markets in the city.
Prior to joining the Mumbai team, he managed research operations for Jones Lang LaSalle based out of
Chennai region and has worked on multiple topical white papers, property market digests and bespoke
research projects spanning diverse geographies within India. With over five years of research and
marketing experience, Hariharan holds a dual degree from Bits Pilani and an MBA from IIPM, Delhi.

Abhishek Kiran Gupta, Head of Research & REIS

Abhishekkiran.Gupta@ap.jll.com
+91 22 6141 6500
Abhishek Kiran Gupta leads the Jones Lang LaSalle India Research team and is based in Mumbai. He
manages research operations on a Pan-India level and is responsible for the team’s outputs, including
research reports such as topical white papers, property market digests and bespoke research projects
based on specific client requirements. Prior to joining Jones Lang LaSalle, he had seven years of
experience in market research, business analysis and market strategy consulting, servicing diversified
industries including pharmaceutical, software publishing and insurance.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by
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USD 2.9 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 185 corporate offices.
The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide.
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Real Estate Intelligence Service (REIS) India is a subscription based research service designed to provide you with cutting edge
insights into India’s diverse and challenging real estate markets through collation, analysis and forecasts of property market indicators and
trends across all major Indian markets across various real estate asset classes - office, retail, residential.
REIS empowers you with consistent and complete market data and analyses for all real estate indicators by specific micro markets. It is
supplemented by value added services including client briefings, presentations and rapid market updates.
For more details, contact,
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The information in this publication should be regarded solely as a general guide. Whilst care has been taken in its preparation no representation is made or responsibility accepted for the accuracy of the whole or any
part. We stress that forecasting is a problematical exercise which at best should be regarded as an indicative assessment of possibilities rather than absolute certainties. The process of making forward projections
involves assumptions regarding numerous variables which are acutely sensitive to changing conditions, variations in any one of which may significantly affect the outcome, and we draw your attention to this factor.