India: Construction Industry to Grow 26% Annually to 2014
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By: Joe Walsh
According to the report “Real Estate Construction - India” available at http://www.reportbuyer.com/
The industry is highly fragmented. The top 10 players account for approximately 10 percent of the total revenue of the industry, while a major part is attributed to unorganised real estate contractors. Many new players are expected to enter the industry with real estate properties, designed specifically to cater to the current economic conditions and consumer preferences. Because of improving stock market conditions in India, approximately 6-7 companies are also expected to come up with their public offerings in second half of FY 2009 and 2010.
Furthermore the report states that the main focus area of almost all real estate companies is the 'affordable housing,' which controls more than 50 percent of residential sales in key residential areas such as Chennai, Gurgaon and Mumbai. It is not only the listed players, but also the unlisted players that have realised that affordable housing is the way to grow.
Real estate companies are looking at new ways to finance their new projects. In order to reduce the risk of high debt and interest expenses, real estate companies are going for other options such as qualified institutional payments. Also, the private equity investments are now being done at project levels rather that company levels.
The Government of India, in order to attract foreign direct investment in the industry, is working out on easier rules for overseas investors to invest in smaller real estate projects. The government has also given full exemption to prefabricated concrete products manufactured at sites in its 2009 annual budget.
The report “Real Estate Construction - India” is available from Report Buyer at:
Report Buyer product ID: IAP00001
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