ROLE OF PRIVATE DELVELOPERS IN HOUSING - HSG - Assignment-2

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ROLE OF PRIVATE DELVELOPERS IN HOUSING

Housing
Assignment-2
Submitted to:
Ms. Rashi Gupta

Submitted By:
Prawin Kumar
Prabaldeep Gautam
Sakshi Helkar
 Real estate development, or property development,
is a business process, encompassing activities that
range from the renovation and re-lease of existing
buildings to the purchase of raw land and the sale of
developed land or parcels to others.

 Real estate developers are the people and


companies who coordinate all of these activities,
converting ideas from paper to real property.

 Real estate development is different from


construction or housebuilding, although many
developers also manage the construction process
or engage in housebuilding.

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 Developers buy land, finance real estate deals, build or have builders build
projects, develop projects in joint venture, create, imagine, control, and
orchestrate the process of development from the beginning to end.
 Developers usually take the greatest risk in the creation or renovation of
real estate and receive the greatest rewards. Typically, developers purchase
a tract of land, determine the marketing of the property, develop the
building program and design, obtain the necessary public approval and
financing, build the structures, and rent out, manage, and ultimately sell it.

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 Sometimes property developers will only undertake part of the process. For
example, some developers source a property and get the plans and permits
approved before selling the property with the plans and permits to a
builder at a premium price.
 Alternatively, a developer that is also a builder may purchase a property
with the plans and permits in place so that they do not have the risk of
failing to obtain planning approval and can start construction on the
development immediately.

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 Purchasing unused land for a potential development is sometimes called
speculative development.

 Subdivision of land is the principal mechanism by which communities are


developed. Technically, subdivision describes the legal and physical steps a
developer must take to convert raw land into developed land. Subdivision is
a vital part of a community's growth, determining its appearance, the mix of
its land uses, and its infrastructure, including roads, drainage systems, water,
sewerage, and public utilities.

 Land development can pose the most risk, but can also be the most
profitable technique as it is dependent on the public sector for approvals
and infrastructure and because it involves a long investment period with no
positive cash flow.
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 A development team can be put together in one of several
ways. At one extreme, a large company might include many
services, from architecture to engineering.
 At the other end of the spectrum, a development company
might consist of one principal and a few staff who hire or
contract with other companies and professionals for each
service as needed.

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 DLF Group.
 Ambuja Neotia Group.
 Brigade Group.
 Embassy Group.
 Godrej Properties.
 Hiranandani Group.
 Mahindra Lifespace Developers.
 Prestige Estates Projects.

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ROLE OF PRIVATE
DEVELOPERS
IN AFFORTABLE
HOUSING IN INDIA

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 Although the purchasing capacity is lower forlower-income groups,
there exists a large demand for housing amongst this segment.

• However, the present formal market is characterized by an


undersupply of residential products catering to this income segment.

• There exists a tremendous potential for housing in which residential


units are priced at less than Rs. 20 Lakhs.

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More than 25 developers in urban areas across India building (or about to build) housing units
in
the Rs. 4 lakh to Rs. 20 lakh price range.

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RAJASTHAN AFFORDABLE
HOUSING POLICY

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• Role of Public sector – Model no.1 RHB Schemes– 50% EWS,LIG and

20% MIG A Urban Local Bodies Schemes – 25% EWS,LIG and 20% MIG

• Role of Private Sector – 15% of Plots in any township for

EWS,LIG Group Housing Project – 5% of FAR for EWS,LIG

• Public Private Partnership – Model no.2,3,4 and 5

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THANK YOU

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