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| WHY INDIA? |
 Real GDP growth of:
>8% during the last 3 years.
>6% in 2008-2009.
forecast to be 6.5-7.0% in 2009-2010.
Anticipated to be 3rd largest economy by 2025.
Growth driven by domestic demand, which represents
80% of economic activity.
Domestic demand is underpinned by:
» High savings rate at 35% (USA 2- 5%) and low
gearing with mortgages and consumer credit being only
6% respectively of GDP.
» Favourable demographics and a middle class of c.
300 million.
» Rural India, which is benefiting from higher support
prices for agriculture goods and Government loans.
Middle class consumption evidenced by the record level of
automobiles sales.
Inflation has fallen after recent increases and is forecast at
4% for 2009-2010. |
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| WHY MIDDLE CLASS RESIDENTIAL REAL ESTATE? |
Indian government’s recognition that real estate is critical to
the country's economic development:
» Change in foreign direct investment (“FDI”) regulation.
» Easing regulations relating to zoning permissions.
» Granting of tax advantages.
Favourable demographics with c. 100 million people
expected to move into urban areas over next decade.
Joint family living evolving into modern single family living.
Upper middle class (>$10,000 p.a.) expected to expand to
583 million by 2025, from 12 million families today, equating
to 41% of the population.
Average home price is 4.5x annual salary vs. 22x ten years
ago.
Total housing shortage in 2008 was 19.4 million units.
Government incentives include:
Priority lending with 2% discount for mortgage lending
under $40,000.
Tax deductibility on capital and interest up to $5,000
p.a. |
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