Dun & Bradstreet (D&B) India is pleased to launch of its publication, ‘India’s Leading Real Estate Companies 2010’. The publication is an attempt to highlight key achievements and issues related to India’s real estate sector and create a valuable ready reference tool on leading real estate companies in the country.

Over the years, real estate has emerged as one of the fastest growing sectors of the Indian economy. According to various authentic sources, the size of the Indian real estate market was estimated at approximately USD 16 bn in 2006 and is estimated to reach USD 180 bn by 2020 registering a CAGR of approximately 19%. The boom in the sector has been enabled by supportive policies such as relaxation in Foreign Direct Investment (FDI) norms, and demographic changes like rising income levels, shrinking household size, rapid urbanization, and a fast-growing organised retail segment.

The change in the real estate scenario post the global financial crisis, poses fresh challenges and developers have adopted new strategies. For instance, several developers have now aggressively begun targeting the sizeable middle income segment, concentrating on other emerging Tier II, III cities and semi urban areas. In addition, environment-friendly buildings are also gaining popularity among developers. Horizontal diversification into services that are associated with property management and leasing is also one of the strategies being used to deal with the impact of the downturn. Further, as a part of a long-term strategy, instead of selling off properties, developers are also considering to explore lease agreements and revenue sharing models - especially for the retail segment.

Another key segment is the affordable housing segment. According to the Ministry of Housing and Urban Poverty Alleviation (MHUPA) India’s housing shortage at the end of the eleventh five year plan period (2007- 2012) was estimated at 26.53 mn units. Nearly 99% of the housing requirement at the beginning of this plan period pertained to Economically Weaker Section (EWS) and Lower Income Group (LIG) segments. Thus, there is a wide demand-supply gap in the affordable housing segment. To meet this demand, developers are now paying more attention on affordable homes and developing strategies to exploit potential demand.

Overall, in the long term, growth in the real estate industry is expected to be driven by the rise in infrastructure spending by government. This in turn will power real estate development. The Indian government should continue to support this industry by initiating policy measures that would attract investments and offer housing for all by promoting inclusive growth.

The publication, ‘India’s Leading Real Estate Companies 2010’ showcases the performance of some of India’s leading real estate companies. I hope you will enjoy reading this publication and I look forward to your suggestions and feedback.

Kaushal Sampat
President & CEO - India
Dun & Bradstreet