Ninth Annual
Asian Real Estate Society (AsRES) International Conference
9-12 August 2004
The Grand Hotel New Delhi, India

Real Estate In India

India, the fourth largest economy in the world, has been maintaining a GDP growth rate of
around 5.5% for more than a decade. Analysts have projected that India has potential to
almost double her present rate of growth with labour and capital productivity improvements.
Real estate and infrastructure plays an essential supportive role in improving labour and
capital productivity. Real estate investment is also a leading indicator of economic growth in
all market economies.

Reform process in Real Estate Sector has garnered unprecedented momentum and with vast
untapped opportunities, India could well be the desired location for real estate
developers/investors in the not-too-distant future. A parallel can be drawn from China, which
receives almost three times of the FDI inflows in India and almost half of this FDI inflow in
China is in the Real Estate sector compared to minimal in India. Despite fundamental
differences between these two countries, i.e., government was the sole owner of land in China
and has started to privatise recently compared to private sector ownership of most of the land
in India, the potential gains from real estate sector in India are also undeniably tremendous.
Two major steps taken by Indian government – allowing foreign direct investment and setting
up real estate mutual funds or Real Estate Investment Trusts – would catalyse real estate
sector in India in not too distant future.

In the past, archaic regulations, unclear titles, low property taxes, low user charges,
constrained mortgage finance and lack of quality standards have been the barriers to real
estate development in India. Because of this land supply curves have almost been vertical and
land costs are disproportionately high. According to a study by Girish Despande and
Madhurima Das of Pricewaterhouse Coppers titled “Indian Real Estate: A Radical Shift”, if
the ratio of land cost/sq. m. to GDP per capita in 1999 for New Delhi is considered as the
index at 100, the rate would be two in Kuala Lumpur, six in Sydney, seven in Bangkok, nine
in Tokyo, 12 in Singapore, 13 in Jakarta and Seoul, 22 in Taipei, 52 in Bangalore and 115 in
Mumbai. With important reforms during last five years such as repealing of Urban Land
Ceiling Act, modification in Rent Control Act, rationalization of property taxes and with
many other proposed for the real estate sector such as computerization of land records etc.,
this anomaly is expected to be corrected.

According to Gail Lyons, Chairman of National Association of Realtors, “There are an
estimated 3 million real estate agents, of whom only about 10 percent are full-time. Although
real estate plays a vital role in the economy, development of best practices standards in areas
such as brokerage, commissions, licensing, and code of ethics will be important as the real
estate industry in India modernizes its practice”. Commercial banks are new players in
traditional domain of specialized housing finance companies. This has not only enhanced
competition in mortgage finance market but is also leading to development of secondary
mortgage market for asset-backed securities.

Delhi

The venue for the conference is The Grand Hotel located in the centre of Delhi’s emerging
commercial district. Delhi is a palimpsest, bearing the complexities, the contradictions, the
beauty and the dynamism of a city where the past coexists with the present. The city was built
and destroyed seven times during her 5000 years of history and has been witness to the
various events, which has brought India through the history books. Many dynasties, with
diverse culture, ruled from here and the city absorbed and enriched the cultural diversity in
daily life. Rich in the architecture (Indian, Mughal and British style), exploring the city can
be a fascinating and rewarding experience.

Today as the capital of India Delhi and major gateway to the country, contemporary Delhi is
a bustling metropolis, which successfully combines in its folds both the ancient and the
modern. The division between New Delhi and Old Delhi is the division between the capitals
of the British and the Mughals respectively. The walled city (Old Delhi) is all about traditions
and culture where one shall be able to glimpse a past lifestyle. New Delhi on the contrary is a
city trying to live up to the 21st century standards.

AsRES 2004 Conference Program and Abstracts

The aim of this conference is provide a forum for academics, practitioners and policymakers
in the areas of commercial and residential real estate industry and markets, urban economics
and planning, regulation and government policy, to exchange ideas on important issues. In
addition to paper sessions covering current theoretical and applied research, the conference
will feature special panel discussion sessions on real estate fund management, development
and investment, housing and urban planning, regulation and government policy, issues in
Asia and rest of the world.

Sponsors:

Fannie Mae Foundation

India Housing Development Finance Corporation

University of Cambridge

Best Paper Awards:

US$1,000 Best Paper Award in Real Estate Valuation: Sponsored by the Appraisal Institute
(AI). The paper will be published in the Appraisal Journal.

US$1,000 Best Paper Award in Property Management and Sustainable Development:
Sponsored by Royal Institution of Chartered Surveyors (RICS).

US$1,000 Best Paper Award: Sponsored by the American Real Estate Society (ARES)
Foundation. The award winning paper will automatically be considered for publication in
International Real Estate Review, with an accelerated peer review process.

AsRES 2004 Conference Program Summary

Sunday 8 August

Delhi/India Introduction
Registration Open
Reception, The Grand Hotel New Delhi

Monday 9 August

Tuesday 10 August

Wednesday 11 August

Thursday 12 August