Growth & Governance

Indian Real Estate | Vision 2020
Spring 2010

VISION 2020 
 Contents

Foreword
01 Equitable and sustainable growth

12 Catalysts of change

22 Governance and transparency

 
 

Foreword
Changes in the global economic landscape over the last decade
have been stark – we have clearly moved from a unipolar state,
with emerging economies leading the charge. In 1980, Asia’s
share in world GDP was 16%, 27% in 2005, and by 2030, it is
projected to reach 45%. In 2009, India’s share in the world
economy was still a mere 2.20%, while China contributed 8.30%,
and the United States contributed 25.70%. Given the deep and
long lasting impact of the financial turmoil over last 18 months
on the Western economies, India’s share in the global economy is
likely to grow in a significant way.
Evidentially, India’s rising role in the world economy will be
related to the contribution of its real estate industry. The real
estate industry’s backward and forward linkages with the housing
and construction industry, and more than 250 ancillary industries
including cement, steel and other building materials, place this
industry as the epicenter of India’s growth story. The industry
provides a means of livelihood for millions of households in
India, next only to agriculture.
Considering the magnitude of socio-economic value the real
estate industry creates for the country, India’s vision for 2020
needs to be closely linked with our vision for this industry. A
more prosperous India in 2020 will be characterised by a better-
organised real estate industry which is transparent, efficient yet
well- regulated and focused on sustainable development.
The prudent fiscal measures taken by the Reserve Bank of India
(RBI), the strength of our domestic demand and the restructuring
measures taken by the real estate development community helped
VISION 2020
the industry reposition its focus and ride through a period of
unprecedented turbulence.
However, the fruits of growth have to also reach the common man
in semi-urban and rural areas, and not just be restricted to a few
big cities. As a country, our needs are changing. Looking at the
demographic changes, it is a challenge to handle the escalating
pressure on our current infrastructure and build new infrastructure
to keep pace with our urbanisation and population growth.
Nevertheless, the real estate industry cannot sustain growth in
isolation. It requires supporting infrastructure, not merely related
with transportation and logistics but also with water, healthcare
and sanitation. The government is expected to further its role as an
enabler, and encourage more contribution from the private sector.
As per the World Bank projections, the per capita power
consumption in India will reach 2460 kwh in 2020 from the
present 384 kwh. It is imperative for us to develop infrastructure at
a much faster pace.
Setting up of a regulatory authority and an appellate tribunal will
help organising the industry, but only if they are efficient and
enablers for the industry’s progress. In the developed economies,
government regulations promote planned development without
acting as hindrance.
A real estate regulatory body (called real estate commission in
some countries) licenses developers, agents and price evaluators,
on the basis of their competence gauged through common
qualifying exams. 
There are specialised educational institutions for real estate
professionals. These institutes are affiliated or run by the
government. Licenses are renewed after verifying proofs of
Continued Professional Education (CPE).
Regulatory bodies, such as those in the UK, have made it
mandatory for developers to provide “Home Information Packs”
to their customers. These packs carry copies of documents related
to clearances, deeds, valuations, development plans,
implementation milestones, and impediments, if any. Such
initiatives can also act as confidence building measures, especially in
India where real estate transactions are enshrouded by various
surprises, controversies, disputes, and a subsequent loss of
satisfaction and trust.
Technology will bring many more spokes in the wheel. The
government and the developers can use it more effectively, to
rationalise their dealings, improve processes, cut costs, and enhance
productivity.
The National Land Records Modernisation Programme, to
dematerialise the land records, is a welcome step. A nationwide
focus on e-Governance can help in taking its benefits down to local
bodies. Computerisation of district collector offices, municipal
corporations, can help reduce the time consumed in taking the
various clearances, and minimising the chances of litigation
concerned with land titles and ownership.
Developers can further leverage technology to devise more
efficient processes related with construction, operations and
customer service.
Some developers in India have started providing web-based access
to their customers to provide specific information about
development of their property and concerned common amenities.
Such practices should be an industry norm.
By 2020, India will become the third largest construction market in
the world, from the current ninth position, as per a 10-year forecast
from Oxford Economics and Global Construction Perspectives.
This position of leadership demands higher degrees of
responsibility and accountability.
Vision 2020 will invariably require a great deal of attention on
climate change and energy efficiency related initiatives.
Sustainability related practices should be treated as an investment
rather than as a cost.
While this paper envisions several such significant perspectives, it
takes a realistic approach by taking into account the factors of
equitable and sustainable growth, technology and governance – the
pillars on which the long term success of Indian real estate industry
would rest.
Vishesh C. Chandiok
National Managing Partner
Grant Thornton India  
Equitable and
sustainable growth
 VISION 2020 

Demographic dynamics: Drivers of growth

Our vision for 2020 is to see the Indian real estate

Key indicators related with macro-economic environment
industry as a far more strong, organised, and sustainable
business. The industry has evolved quite well in the past Development Parameters India India
at present in 2020
few years, while also witnessing a period of recession,
which rather provided an opportunity to retrospect, Composition of GDP (in %)
-- Agriculture 28.0 6.0
resurrect and consolidate. Today the industry is set to -- Manufacturing 26.0 34.0
come back on the track of high growth and it becomes -- Services 46.0 60.0
imperative that it learns from the past and utilise its
International trade in goods as % of GDP (PPP - 3.6 35.0
experiences in building a prosperous future. Purchasing Power Parity)

To sustain growth in the long term, it is imperative to Foreign Direct Investment (FDI) as % of Gross 2.1 24.5
Capital Formation (GCF)
synchronise demographic and economic factors. The
nature of population growth, personal and national Gross FDI as % of GDP (PPP) 0.1 3.5
incomes are the driving forces for all the industries. This
International trade in goods as % of GDP (PPP - 3.6 35.0
is invariably true for the real estate industry as well. Purchasing Power Parity)

Foreign Direct Investment (FDI) as % of Gross 2.1 24.5

Considering its young population, saving rates, and a Capital Formation (GCF)
magnanimous room for growth, most economists believe
Gross FDI as % of GDP (PPP) 0.1 3.5
that India enjoys the fundamentals to keep its growth
over 7-8% for several decades. Source: World Development Indicators & Planning Commission of India

The next 10 years will further witness a dramatic shift in

the form of GDP composition and the other significant
macro-economic indicators. (Please refer the alongside
table)

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Improving quality of life
The per capita income of India has doubled over the past 20 Key indicators related with demographic changes
years. On the other hand, our population growth has slowed
Development Parameters India India
down to 1.6%. This implies that a GDP growth rate of at present in 2020
around 9% can quadruple the per capita income by 2020.
Income distribution (gini index 100 = equality) 37.8 48.5
Such development in the per capita income can place India Life expectancy at birth (in years) 64.0 69.0
along with the upper middle income (UMI) nations such as
Mexico, South Africa, Malaysia, Hungary, Chile and Unemployment rate 7.3 6.8
Argentina – far above China. Commercial energy consumption (kg of oil equivalent) 486.0 2002.0

With 1.6 billion people, India will be the largest populated Electric power consumption (per capita/kwh) 384.0 2460.0
country in the world by 2050. However, considering the Telephones per 1000 population 34.0 203.0
median age of 39 years, India will have superior dependency
Source: World Development Indicators & Planning Commission of India
ratios, while its close rivals will have a relatively large old
population.
Population growth complemented by a rise in income opportunities can
This is how, assuming the above conditions develop and well-translate into a diverse, deep, dynamic and yet sustainable real estate
prevail, India will be able to turn its demographic changes market. Given the kind of demographic changes likely to happen in India, in
into a unique competitive advantage. the next ten years, it is imperative for the real estate industry to observe
these trends more carefully.
Being an economic superpower, India will enjoy a
tremendous demand for all types of real estate – residential,
commercial and industrial. The challenge and the
opportunity for the real estate industry lies in synchronising
the moves with the changes in demography.
 

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Polycentric development: Decongesting the urban areas
Having understood the challenges and opportunities
linked with Indian demographics, India should strive
to establish masterplan-strategies. The future cities of
India should be enabled to manage urban
development; avoid urban sprawl; focus on a balance
between built-up area and open space; between
successful urban growth and livability; and between
urban and rural space.
In this context, the concept of polycentric spatial
development or polycentricity is closely linked to the
idea of sustainable urban development. The term
polycentricity has different significance for different
scales. For instance, in Europe, polycentricity may
refer to functional connectivity, between global
“gateway” cities such as London, Paris and Frankfurt,
and the utilisation of global economic and knowledge
flows coming into these cities for the benefit of other
cities and regions.
However, at a finer geographical scale, polycentricity
refers to the outward diffusion from major cities to
smaller ones over a wide area, and focuses on the
local linkages that arise from this process.
Wuhan, a large, fast developing city in China with
over 8 million people is a fine example of a
polycentric urban network. About four million people
Polycentricity is a concept based on
live in the central city and the rest of the inhabitants live
methodologies to use a city’s assets
in the six centers of the second level and quite some
(focusing on specific qualities and
smaller villages, dispersed over the area. The the location of the several city-nodes
municipality covers a surface of 8.5 square kilometers. in all kinds of networks) and to get
The cities of Istanbul, Turkey and Arnhem Netherlands grip and control over sprawling
have also adopted a similar plan for urban development. urban development.
For India, the four key dimensions of polycentricity can
become the underlying fabric of future development:
• Settlement pattern: Distribute population, built-up
area, infrastructure over the several urban centers in
a territory
• Functional socio-economic specialisation: Create
specialisation in each of the several centers, based on
the key competences they represent
• Ease of accessibility: Establish connectivity in
terms of transportation and accessibility of
information by connecting the nodes in a polycentric
pattern
• Cooperation and interaction: Embed the urban
nodes in the network, which foster cooperation,
complementary existence and synergy References:
Wu Zhiling, Jos Verweij, Bert Smolders:
Framing urban sprawl in Wuhan and Arnhem,
Keeping India’s current development state in mind, the
44th ISOCARP Congress 2008
following sections evaluate the basic building blocks
required in the Indian real estate sector to get the Polycentricity and metropolitan governance. A
Swiss case study
foundational aspects right.
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The benchmarks:
Enhancing performance, delivering value
The Indian property and real estate market have traditionally
been unorganised and fragmented. However, in the recent
past the market has witnessed consolidation as developers
enhance their capacities to meet the market demand. While
the market still lacks transparency and liquidity compared to
the western markets, the increasing requirements of
multinational occupiers, as well as the influx of international
property consultancies has led to the introduction of greater
availability of market information, both in published and
private form. Though the IPOs by a host of real estate
developers have also led to the organisation of the market in
the Tier I cities, the Tier II and Tier III cities continue to
demonstrate the traits of an unorganised market.
Defining KPIs for real estate development
In many ways, the pace of economic growth of any nation can
be measured by the development of physical infrastructure,
such as buildings, roads, highways, flyovers and bridges.
Project development in the sector involves numerous parties,
various processes, different phases and stages of work and a
great deal of input from both the public and private sectors,
with the major aim of bringing the project to a successful
conclusion.
The level of success of a project heavily depends on the quality
of the managerial, financial, technical and organisational
performance of the respective parties, while taking into
consideration the associated risk management, the business
environment, and economic and political stability. As the
industry matures it also becomes more complex. Hence a more
sophisticated approach is necessary to deal with initiating,
planning, financing, designing, approving, implementing and
completing projects.
It is important to develop Key Performance Indicators (KPIs)
to benchmark projects and achieve better performance. The
KPIs should be selected such that some promote result-
oriented thinking, whereas others are tuned towards process-
oriented thinking. The best performance achieved in a practice
is the benchmark.
Thus, the objective is to understand the existing processes and
activities and then to identify an external point of reference or
standard by which that activity can be measured or judged.
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An assessment of the real estate and construction market for the purpose of developing KPIs at different stages of developments
yields the following:

Project Selection Phase Project Execution Phase Implementation Phase Overall Project Life Cycle

• Technology
• Project screening development • Production
• Customer delight
Major Concerns • Detailed evaluation • Product development • Sales
• ROI
• Project selection • Performance • Marketing
demonstration

• Benefit • Production
Key Factors/ • Progress deviation
• Risk • Cost effectiveness • Integrated
Performance • Cost deviation
• Special consideration • Customer Performance
indicators • Decision effectiveness
(category) commitment

Sponsoring Project management

Stakeholders Customer All stakeholders
organisation team

• Profile charts
• Check lists
• Scoring models • Gantt chart
• Production rate • Cash Flows
Existing Models for • Economic indic • Slip chart
& Yield • Customer
performance • Frontier models • CPM
• Product Quality feedback
measurement • Risk models • PERT
• Sales volume • Growth potential
• Portfolio model • Earned value
• AHP models
• Fuzzy models

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 Current State Proposed State
Looking into the future
Preparation of
The real estate market today is at a point of inflection, a stage, Building Plans
Preparation of Building Plans
where the necessary corrective steering needs to be made, in
aspects such as accountability, development of safety Building Confirmation Building Official
Designated Confirmation
Building Official
& inspection Body
standards, standardised quality of construction, and increased
use of technology. Some other aspects that need to be looked
Construction Phase Construction Phase
into are sustainable development, green living, quality
infrastructure, etc. Interim Inspection
Designated Confirmation
Building Official
& inspection Body

Quality and risk assessment

Quality control is not limited to a one-time assessment of a Building Official
property during the construction phase, but extends to the Final Inspection Designated Confirmation
& inspection Body
Building Official
maintenance phase also. The current scenario demands, Building Certification

continual assessment of the large projects during the

Building use by
construction phase as well as a KPI based assessment at each occupants
Building use by occupants

stage of the project. Also, certificates such as ‘ready-to-live’,

etc. must be issued.

Interim phases of assessment and quality certifications need Procedure for interim inspection

to be introduced into the system prior to inhabiting it. The Special Administrative Building Owner Building Officials Building Officials
current National Building Code (NBC) norms must be revised Agency

to incorporate higher safety norms as per international safety Preparation of Apply for Apply for
Inspection
Building Plans Inspection Inspection
standards. Further, post habitation, frequent quality audits
Area, term, Structure, Time bound Construction work shall
must be conducted to ensure that the buildings continue to be use, scale application & not be restarted until issue
inspection of certificate
safe. Stringent compliance mechanisms must translate into
appropriate implementation.

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Accountability
The real estate sector in India lacks accountability. In India,
simple questions, as the ones below, would yield multiple
replies:
• on whom does one rely for a safer house? Would it be
the developer, contractor, architect, public authorities or
the financier?
• if a building collapses, leading to an irreparable loss of
life and property, who is to be blamed?
Looking forward
The recent growth of interest in benchmarking, as it
relates to successful project performance, can be
ambfleetingiguous and becomes extremely complicated.
The framework for performance indicators for
successful construction project performance,
documented in this paper, is very dynamic a subject of
ongoing research and calibration.

These questions may seem simple and at times even

irrelevant, but it is these questions that every citizen wants
responses to these questions. Currently, there is no or
limited enforcement on building construction and
inspection. The industry should have an inspecting and
enforcing body that certifies buildings on parameters such
as ‘ready-to-occupy’ or ‘A- Grade quality material’. Further,
accountability has to be introduced into the system along
with penal actions.

Accountability would ensure quality development at each

stage of development and would also help identify the
exact cause of sub-standard performance.

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Building capacities through planning
and implementation
India Realty Inc. is gearing up for the next wave of
growth. However, in order to put India on a real,
sustainable growth track, it needs a series of reforms and
an institutionalised governance plan that can further raise
the quality standards. There is a consensus amongst
industry experts that the following reforms will create a
strong foundation for India’s development in the coming
years.
Emphasis on master planning
The master plans for the larger Indian cities outgrow at a
pace faster than anticipated. This happens primarily due
to myopic planning, unavailability of data and
cumbersome approval processes. With Indian populace
moving towards large, high density cities, the adequacy
of master planning becomes more important than ever
before. The master planning process should not only to
be more integrated but also more transparent. A
comprehensive master plan must contain the following
key ingredients:
• current and deep understanding of the existing
situation and gaps from prior plans
• robust analysis on demographic data and validated
assumptions for future projections
• plans for strengthening the area’s economic
development and attracting future investments
• infrastructure assessment, including transit,
connectivity, utilities, energy efficiency, civic
amenities and preservation of heritage
• a process for stakeholder consultation and timely
public disclosures
• an overall plan for implementation, timelines, review,
amendments and enforcement
Of course, the above elements seem fairly basic and
ordinary. However, recent appraisals of City
Development Programs show startling results, where
one or more of the above aspects were completely
ignored by the local authorities.
By strengthening the appraisal and monitoring
functions, City Development Programs can become a
catalyst for achieving an integrated, more
comprehensive master planning process. 
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Skill development and capacity building (NICMAR) provide a good platform for skill
India has a long way to go before reforms are development. However, these initiatives need to
be broad-based, providing trained manpower
successfully implemented. In order to ensure that
these initiatives and best practices are across the property lifecycle and some of the
institutionalised in India, real estate and suggested steps are enumerated here on:
construction professionals have to be empowered
• a model educational curriculum for training
to embed sustainability goals throughout the and skill development with focus on using
property lifecycle. uniform practices and standards
• codification and dissemination of education
Demolition &
Greenfield
material, best practices, guidance, benchmarks
/Estate
remediation
Management • continuing professional education by holding
workshops and promoting professional clubs.
• expanding the student base and increasing
awareness among the youth
Property lifecycle • strengthening the fraternity of real estate
professionals
Occupation & Planning &
use procurement
Increasing the use of technology in the property
lifecycle can lead to drastic improvements in
productivity. For e.g. Enterprise Resource
New
construction Planning (ERP) solutions, that manage diverse
At present, there are very few training institutes projects across different locations, are slowly
gaining acceptance with developers. ERP vendors
that offer specialised courses for the Real Estate
sector. Institutes such as the National Institute of are seeing greater demand for providing tailored
Construction Management and Research solutions to help accelerate business plans.
“Most often, the need for a particular best
practice is known but transfer of knowledge
or ‘successful execution’ proves to be a
bottleneck. While all stakeholders will have
their role to play in sharing best practices
that impact them the most, carrying them out
in isolation may yield sub-optimal results.
What is required is a coordinated effort from
all stakeholders including Government,
industry associations, educational institutes
and companies, who need to come together
and build strategies, framework and identify
effective and scalable best practice solutions
to impending issues. I personally believe that
industry associations have a larger role to
play, as a catalyst for change.
Along with imparting knowledge and best
practice to their members, they need to
facilitate creation of a larger pool of
professionally qualified people with requisite
skills to ensure projects are delivered
efficiently as per international standards.”
Sachin Sandhir
Managing Director & Country Head
Royal Institution of Chartered
Surveyors 
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Reforms in approval related procedures
The current regulatory oversight in the Real Estate sector
includes managing a linear (or sequential) approvals
process and dealing with outdated policy guidelines. This
is not only onerous and time consuming for the
Developers but also adds to the overall project costs,
which are eventually passed on to the end customer.
Contrast this with the Building Control departments in
the United Kingdom, which provide speedy approvals
under a stipulated time frame.
Furthermore, the proposed Real Estate Act makes it
mandatory for developers to obtain all sanctions and
approvals required to undertake a project prior to
marketing it externally. It is not surprising to see
resistance from the developer community for the real
estate bill, which is silent on providing approvals under
one roof. Real estate is a “State” subject and adding a
regulation at a national level, without addressing the
status of the current approval process at the State level,
will only add to the delays.
If the Indian Real Estate sector needs to keep flourishing,
it must move towards a regime of simplified regulatory
and approval process.
As a first step, the regulators should set up a single
window clearance system which:
• helps its customers achieve building a project that
meets their expectations, while keeping in mind the
building code and requirements of the masses
• ensures that the level of diligence/inspection is
commensurate with the risk and need
• empowers local authorities to enforce building
standards and monitor compliance with modern
guidelines
• works cohesively with other regulators to provide
seamless service to its customers
• does a periodic assessment of its internal guidelines,
after inviting due inputs from all stakeholders
• offers end buyers an effective means of resolving
disputes about compliance.
The industry experts feel that bringing approvals under
one roof is a herculean task simply because of multiplicity
of regulations. However, if India is ready to take on the
mammoth challenge of creating the Unique Identification
Authority, single window clearance should not be a distant
dream. 
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Impetus to Public Private Partnerships (PPPs)
The landscape
Disparities in infrastructure requirement and availability are
identically similar in emerging economies. India's challenge is
not only to improve its existing infrastructure, but also to
build new infrastructure to keep up with its fast growing
economy and demographics.
According to official estimates from the Indian Finance
Ministry (IFM), the country's GDP growth could be 2
percentage points higher but for the shortcomings in
infrastructure. Hence, infrastructure development has been
awarded key priority in the 11th Five-Year- Plan for the years
2007-2012. The Budget 2010-2011 allocates 46% of the total
planned allocation to infrastructure development.
The Prime Minister's Committee on infrastructure states that
the projected investment requirement for infrastructure
development during the eleventh plan period (2007-2012) is
US$500 billion, of which 30% is expected to come from the
private sector. By 2012 the Government expects
infrastructure investment to equal to 9% of GDP, compared
with 5% in 2007. The overall investment requirement is
anticipated to go up to US$1.5 trillion in the twelfth plan
period (2012-2017).
Low cost housing and PPP
The real estate world has changed significantly after the global
financial meltdown in the US. India was no exception and the
real estate market witnessed a contraction in both volume and
value. Real estate developers were gripped with the liquidity
crisis and were forced to change the ways of doing business.
Downturn and liquidity crunch forced developers to adopt a
two pronged strategy - smaller units at lesser prices. This
shifted the developers’ focus on the Affordable Housing
Segment (AHS), which has become the buzz word in the real
estate market for the last few months and will be a key growth
driver for the real estate sector.
An estimate shows an urban housing shortage of 24.7 million,
largely for the weaker and low-income households. The interest
from private developers and increase in demand of AHS also
provides an opportunity to the Government to structure
projects to address the low cost housing demand
The Government has taken steps in this regard; the cabinet
committee in 2009 approved a scheme to be implemented
through the public-private partnership (PPP) model, to
encourage states to increase the supply of land and construct
one million affordable houses. Under this scheme, it is
compulsory to build and allot a minimum of 25% houses (300
sq ft each) for the Economically Weaker Section (EWS) and the
urban poor.
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Catalysts of change

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 Technology for transformation
Technology can transform the entire lifecycle of real estate, right
from conceptualisation to design and construction to operations
and maintenance. The emergence of advanced building
automation systems bring together different applications related
with energy efficiency; heating, ventilation and air conditioning
(HVAC); safety and security; et al.
Typically, the post-development phase of management and
maintenance takes up to three-fourth of the total cost of the
building lifecycle. Using intelligent Building Management
Systems (BMS) can well translate into better processes
instinctively related with costs, management, response and
delivery.
It is estimated that systems linked to a BMS represent about
70% of a building’s energy usage, and using an intelligent BMS
can help reduce this consumption by as much as 35%.
Nevertheless, technology can help reduce project delays, in a
radical manner. Operation Research Technology, for instance,
can help control every process of construction. Such systems
ensure that all the processes work in extreme synchronisation,
thereby bringing the factors delaying the project to the
minimum.
Developers can also leverage technology to improvise the much-
needed aspect of customer service. Web-based applications can
provide customers a real-time information about their property
under development, and keep them informed.
Technology, as an instrument of change and transformation,
can help a real estate company:
• create a collaborative and more prolific environment
with superior connectivity
• take control of capital and operational expenditure for
key stakeholders, across the building life cycle
• enable building owners to enhance their business
models and create new revenue streams
• enhance aspects related with safety, security and
health of building occupants
• raise goodwill and increase reputation in the
marketplace
Not just utilities, security is another area of concern where use
of technology brings in the advantage. While technology major
Cisco takes the credit for several innovations related with
BMS, IBM has brought in the next generation concept of
Digital Video Surveillance (DVS), based on Smart Surveillance
System.
Nevertheless, the industry is heading towards convergence of
multi-proprietary networks that will control and coordinate
communication, power, water supply, safety and security in a
building. With such developments in the technological space,
the real estate of India can expect exciting times in the coming
years.
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 VISION 2020 

Innovation and convergence of

technologies
Services
The Indian real estate has to keep a keen eye Network
on technological innovations to realise its Integrated
Building
Vision 2020 aspirations. The more receptive
the industry gets for technological innovations,
the greater will be the speed of change. Applications
Internet
Internet
An integration of electrical and information Communi-
Building
cation
technology (illustration alongside) can enable a Platform
Platform
building to transform from a device-oriented,
function-driven platform to a unified service-
oriented platform. Systems

Every building has a multilayer infrastructure Life, Building Data Voice Video
and it is extremely critical that the building Safety and Automation
should be designed and constructed in such a Security
manner that makes the collaboration of these
layers possible. The resultant platform will Devices
streamline processes, thereby tapping Fax and
productivity and operational efficiency in a Data Voice
Fire/Alarm Surveillan HVAC Electricity text TV and
Communic Communi-
significant way. Such models have potential to Control ce/Access Control Control
ation
Communic
cation
Images
enhance a building’s value and optimising control ation
costs, in the long term.
Electrical Technology Information Technology
After the integration of information and
electrical technologies, the Indian real estate
industry can take a leap towards convergence Convergence of Electrical and Information Technology
Model adapted from Zurich ETH and Technibank 
of Information and Communication
Technologies (ICT) with electrical, mechanical
and civil construction techniques and
technologies.
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 Design Information

• Master plan
Development Information • Collaborative design
• Circular, codes and
Management and synchronisation of • Master plan
statutory requirements
and regulations
information networks • Land requisition
• Standard drawing
• Building data
details
• Land sales
Real estate industry will keep growing in terms • Land cost and value
• Code of practices
of size and so does complexity. Managing • Market indices
information spread across the building lifecycle • Investigation reports
will be a challenge (illustration alongside). (Soil, land quality, etc.)
• Surveyor information Submission Information
• Forms and circulars
At the same time, real estate players who will from statutory agencies
take a proactive approach in managing these • Consultants database
• Master plan
vast information networks will secure a position Information • Submission information
leveraging the power of seamless accessibility to Networks • Forms and checklists
information. Synchronisation • Circulars
• Status of submission
applications
Of course, this will require a sizeable Facilities Management
investment in technology. However, the Information
question arises: Will the tenants or buyers resist
more efficient workplaces and housing units in Construction/Procurement
the future? The answer will be no. Information
• Construction quality
control and
Well synchronised information networks would assessment • Tender bid and
• Certifications documentation
invariably lead to reduced project completion • Maintenance plans • Safety guidelines and
period. At the same time, developers can enjoy regulations
enhanced goodwill while also be gaining • Material, labor and
position for charging a proportionate premium construction costs
on rent and capital values. • Approved materialists
• Contractors and
suppliers database

Management of Information Networks in a Real Estate Business

Adapted from Building and Construction Authority, Singapore 

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Vision green:
Growth with sustainability and responsibility
Considering the changes in global climate,
rising population, pollution, related regulations
and also the commercial concerns vis-à-vis
power crisis, running cost and pressure on
urban infrastructure, green practices are all
likely to surface up as a necessity rather than a
matter of choice, in the next ten years.
Along with the environmental concerns, the
most obvious objective of constructing green
buildings would be to bring in energy efficiency
practices, thus reducing the consumption of
power and water, primarily. However, in the
short term, real estate developers find the initial
cost of deploying energy efficient systems as a
major hindrance.
According to industry veterans, constructing a
green building typically costs 25-35% more
than the normal cost of construction. On the
other hand, the cost benefit generated over the
life of a green building far exceeds the initial
cost of construction. Nevertheless, there is a
host of indirect benefits of constructing green
buildings, in terms of better health,
productivity, and of course, the brand equity
for the developer.
Despite these benefits, constructing a green
building still remains a challenge when it comes While there are a number of ways which
to the initial capital outlay and immediate return can translate into reduced energy
on investment. While residential real estate consumption and better management,
prices are already at levels that are not easily some of the major ones include:
reachable by masses, it is quite difficult to offer
houses that are environment-friendly, even if • solar power generation
they are less-burdensome, in terms of • natural ventilation and lighting
maintenance and running costs. • use of CFL and LED systems
• efficient insulation
Similarly, the higher initial capital investment for
commercial real estate buyers and also • rainwater harvesting
developers who operate on leasing model, do
not make green buildings a viable proposition, in
the short term.
“Real estate and its ancillary industries
account for more than half of the world’s
energy consumption and hence generate
far more greenhouse gas emissions than
any other industry.”
Siddhartha Nigam
Partner, Grant Thornton India
16 | Grant Thornton India
What can be done?
In view of reducing the initial cost of
construction, developers can be provided various
incentives in the form of tax rebates, interest rate
subsidies, amongst others. Developers seeking to
initiate green building projects can be provided
priority status in building permit processes, and
associated clearances. Tax incentives can, of
course, act as a major boost.
In the United States (US), taxpayers enjoy an
immediate deduction of up to US$1.80 per
square foot for installing environment-friendly
lighting, and HVAC systems. The certified
systems typically reduce energy consumption by
50% or more, without compromising on the
quality.
Significant tax credits, from 10 to 30%, are
provided to businesses that install power
generation systems for self consumption, while
provisions for bonus depreciation also acts as an
incentive for constructing green buildings.
Besides tax incentives, Floor Space Index (FSI)
norms can be relaxed for green building
projects. This will allow a developer to offset the
higher cost of construction. Returns in the form
of carbon credits can also drive green projects.
Carbon credits earned due to practices reducing
Green House Gas (GHG) emissions can be
traded in the international markets.
Fly ash cement, bricks, aerated blocks, Compact
Fluorescent Lamps (CFL), Light Emitting Diode
(LED) systems, water harvesting, solar
equipments, recycled steel and aluminium are
amongst the commonly used raw materials for
green building construction. Incentivising these
materials can further help in bringing down the
cost of construction.
Suggested incentives
Preferential permits and clearances
Tax credits
Property or sales tax rebates
Priority loans
Interest rate subsidies
“Building real estate is also about
building future. What we create today
is going to last for the next several
decades, and thus, it becomes
necessary to adopt a holistic vision.
Green practices not just influence
environment in a positive way, but
they also have a tremendous
economic and social impact.”
Subrata Paul
CEO, Bengal Aerotropolis
Projects Limited
17 | Grant Thornton India
Role of state governments and local bodies
LEED: Leadership in Energy and Environmental Design
Country of origin: United States
An active involvement of state governments and local bodies is imperative in

Green Building Standards and

Certified over 1500 projects since 2000
Growing by more than 50% a year
promoting green real estate in India. Countries, such as US, Britain, Canada, Australia,

Certification Agencies
France, Germany, Sweden and Japan, that have been enjoying a relatively higher green
BREEAM: Building Research Establishment
share in real estate market have achieved good results with state and local level Environmental Assessment Method
involvement. Country of origin: United Kingdom
Certified over 1700 projects

Chicago’s Department of Construction and Permits (DCAP), for instance, provides

permits to green projects on a preferential basis, in as few as 15 business days. Several CASBEE: Comprehensive Assessment System for
Building Environmental Efficiency
local departments have implemented Green Permit Programs in their respective areas Popular in Japan, Green Star in Australia, and Green
of jurisdiction, and this also acts as a confidence building measure for the real estate Mark in Singapore
industry. The city of Portland provides free technical assistance for green projects.
IGBC: Indian Green Building Council Green Rating for Integrated
The government authorities involved in real estate development, such as Delhi Country of origin: India Habitat Assessment
Development Authority (DDA), Mumbai Metropolitan Region Development Authority Registered buildings: 501 (GRIHA)
Certified buildings: 69 Country of origin: India, The
(MMRDA), Bangalore Development Authority (BDA), Chennai Metropolitan Green building footprint: 358 million Energy research Institute
Development Authority (CMDA), and Kolkata Metropolitan Development Authority square feet (TERI)

(KMDA), can act as a torch bearer, and come up with green projects. This will also
help in testing the waters and minimize the various risks and bottlenecks coming in the
way of proliferating green projects.

Finding a cheaper source of finance is always a challenge for the Indian real estate
industry. This issue can be addressed by providing easier access to finance that is
relatively cheaper. Interest rate subsidies, thus, can be yet another incentive for building
green real estate. 

18 | Grant Thornton India

Current scenario in India
India is touted as one of the top countries that have a high
potential of building green real estate. The government of
India has launched the Energy Conservation Building Code
(ECBC) under the National Building Codes and Standards,
for promotion of green buildings in the country.
The number of green building projects in India is expected
to go up from the current 164 to over 2000 by 2012, as per
recent reports from the Press Trust of India (PTI). The
CII-Sohrabji Godrej Green Business Centre in Hyderabad,
Major green buildings in India
ITC centre in Gurgaon and Technopolis in Kolkata are
few of the pioneer green building projects in India.
Technology plays an instrumental role in making green
practices more viable, effective and simple. Technology
major Cisco has opened a state-of-the-art Globalisation
Centre East campus in Bangalore. The campus is set to
integrate building management system solution with
traditionally disparate control networks for power,
water and communications into a corroborated Internet
Protocol (IP) based infrastructure. The initiatives that
have been implemented include natural lighting,
rainwater harvesting and waste recycling.

Hike in cost Payback period

Project
City Area Rating (in %) on cost premium
(in years)
CII-Sohrabji Godrej GBC Hyderabad 20,000 Platinum 18 7

ITC Green Centre Gurgaon 170,000 Platinum 15 6

Spectral Services Noida 15,000 Platinum 8 4

Wipro Gurgaon 175,000 Platinum 8 5

Technopolis Kolkata 72,000 Gold 6 3

Source: CII

19 | Grant Thornton India

 10
China

New construction potential

8
S. Korea
Turkey
Russia
Brazil
6
Australia
Poland India
Indonesia
Netherlands Canada Sweden
4
UK
Spain US
Mexico
2 Germany
France
Italy
Japan
0
Low green share Moderate green share High green share
0 2 4 6 8 10

Sustainability level Source: RREEF

Future trends
Green building construction is slowly picking up pace in India.
However, the progress made so far is much below expectations.
For instance, the CII-Sohrabji Godrej building in Hyderabad
was launched in 2004 in Hyderabad, and it was expected to be a
trendsetter for green buildings – this did not happen.
The major bottleneck comes up in the form of awareness. It is
perceived that green buildings are capital intensive and
commercially unviable. Also, the resources required for
constructing green projects are not easily available, while there
is also a lack of technical expertise available in the country.
However, there are several ways through which green buildings
can be made commercially viable. Typically, it is seen that the
normal payback period for the cost premium on green
buildings range from three to seven years. This can be further
brought down as in the case of One Indiabulls Centre in
Mumbai, which claims the payback period of two to three
years.
There is also a need for providing stimulus to convert existing
buildings into green buildings. The fact that corporate India is
becoming increasingly conscious of environment, there is a
substantial room for improvement in this area. Similarly,
there are millions of homes that can be installed with green
solutions including those pertaining to alternative energy
resources and recycling.
The Indian government has taken a welcome step of setting
up its offices in green buildings. However, given the
magnitude and thrust on infrastructure development, it is
critical to bring these projects as well under the purview of
green construction.
Meanwhile, a host of green building projects are coming up
in the National Capital Region (NCR), Mumbai, Chennai and
Bangalore. As one of the fastest growing economies in the
world, India is seen on a high-scale of investment
opportunities in green buildings. Amongst Brazil, Russia,
India and China (BRIC) group, India is quite ahead of Russia
and China, in terms of green share, and next only to Brazil.
Though regulations may help, green practices will get greater
acceptance with rationalisation of cost structures and lending
policy-level support. 
20 | Grant Thornton India
 Governance
and transparency

22 | Grant Thornton India

 
 

Reducing information asymmetry
The real estate sector is a text book example of large scale
information asymmetry – cases where one party to a
transaction has the relevant information but the others do
not. Today, information in this sector is scanty, outdated
and unreliable. For example, an average consumer does not
have access to reliable data on demand and supply, the
developers are unsure of authenticity of property titles and
the financiers do not have credit history of borrowers.
There are multiple initiatives that are running
simultaneously to reduce information asymmetry. For
instance, the Reserve Bank of India has taken the initiative
with the National Building Organisation to launch a housing
start-up index which will help assess economic activity using
demand and supply data on the housing sector. NBO has
also launched an online MIS tool called Building Related
Information and Knowledge System (BRIKS), which will
collect, collate and compile building-related statistics from
across state governments departments. Further, various
states are in the process of computerisation of land records
with an aim to develop comprehensive and transparent land
records and titling system.
VISION 2020 
Most of these initiatives are being taken at a macro level and
a stronger push or partnership with an expert third party
organisation is needed to provide the following micro level
information:
• Land and title records: Computerisation of land records
is only one part of the challenge. The real issue lies in
verifying authenticity of title – an area that has kept the
Indian courts busy for decades. Given this dismal
performance, the rate of new civil cases being admitted
to courts has actually declined over the last decade
• Recent transaction information (sale, purchase, rent):
Most developed countries have current, detailed
databases that are available for nil or nominal fee to
users. In India, such databases exist only in the private
sector and are too costly for a typical consumer
• Transaction fee information: Typically, transaction fees
are unpredictable and opaque
The objective from the above is simple – empower the
consumer to conduct transaction after evaluating all
information, in a transparent manner. The increase in
demand and the volume of transactions will far exceed even
the optimistic expectations.
23 | Grant Thornton India
Transparency and the right to information
Accelerated urbanisation is putting immense pressure on
the rate of urban development in India. Thus, a pathway
for development cannot be myopically exclusive and
limited to a few big cities, as the scope of urbanisation,
and hence urban development would need to address
much larger geographical areas in the very near future.
The strain on our current infrastructure continues to
escalate, considering the nature of demographic changes
the country is witnessing today. The need to develop
sustainable infrastructure in the form of self sustaining
agglomeration as well as ‘conurbations’1, inclusive of
provision of sufficient housing and commercial
establishments, employment opportunities, healthcare
and entertainment facilities along with quality active and
passive infrastructure, is the need of the hour. Further,
there is a need to constantly assess the future demand
and supply while developing and maintaining the
infrastructure.
The primary responsibility to develop the infrastructure
has been allocated to the State Government by the
Constitution of India. It is estimated that the annual
requirement of funds for development of urban
infrastructure alone is around Rs. 40,000 crores,
inclusive of the capital requirement for light rail transit,
mass rapid transit and new township development
projects.
The state governments on one end are constrained by
funds required for urban development and by the
massive urban growth and concentration on the other.
The state governments’ efforts to bridge the gap
between funds required and the funds in hand, has led
to the formulation of many innovative policies. External
Development Charge (EDC), is one such tax which is
levied on ‘colonies’, wherein, the ‘coloniser’ enters into a
bilateral agreement with the Director, Town & Country
Planning or an equivalent authority, which defines the
payment of proportionate development charges towards
development of physical infrastructure in the region.
The external development work broadly covers
development and maintenance of:
1
• water supply sewerage and drainage a conurbation is a polycentric urban
agglomeration, in which transportation
• transport, communication utilities infrastructure
has developed to link areas to create a
• healthcare infrastructure and protection works
single urban labour market or travel to
• horticulture, recreational and entertainment facilities work area
and community buildings
24 | Grant Thornton India
 EDC has been a fleeting success in terms of collections.
State Governments such as Haryana have already
collected in excess of Rs. 3000 crores through this policy
alone. Development and usage of the corpus created is
often questionable as there is limited transparency in the
system. This paper strives to introduce certain changes in
the system, aimed at making collection and usage of
EDC funds transparent and simultaneously, making
bodies accountable for time bound usage of these funds.
Further, in the context of EDCs, since no
government/urban development website details the costs
of EDC by region, the developers/colonisers often take
undue advantage by hiking the prices and passing the
burden on the consumers.
but also, aide in enforcement and tracking the
development. The government should recognise that
technology is not a deterrent but an incentive towards
streamlining the acts to providing information. A
centralised system at the state level should be developed
which captures all the details for the development areas.
Further, regular audit reports should be published
detailing responsibility, costs and time frame of
development should be published, and these results
should in turn be linked to the appraisal of the
respective authorities. This would not only increase
transparency but also instigate responsibility among the
stake holders.

In the context of EDC, the state development authorities

should provide information pertaining to usage of funds,
such as, current and planned development activity,
current and planned expenditure, allocation of
responsibility as well as time to completion of the
projects.

A transparent system such as the one proposed would

not only provide the residents with the required details,

25 | Grant Thornton India

 
 
 RTI and transparency in the system
The Right to Information (RTI) Act is a law enacted by
the Parliament of India to provide for setting out the
practical regime of right to information for citizens.
Under the provisions of the Act, any citizen (excluding
the citizens within J&K) may request information from a
"public authority” which is required to reply expeditiously
or within thirty days. Further, the Act also requires every
public authority to computerise their records for wide
dissemination and to proactively publish certain
categories of information so that the citizens need
minimum recourse to request for information formally.
The Act specifies that citizens have a right to:
• request any information (as defined2)
• take copies of documents
• inspect documents, works and records
• take certified samples of materials of work
• obtain information in form of printouts, diskettes,
floppies, tapes, video cassettes 'or in any other
electronic mode' or through printouts
Despite the mandate to computerise records and make
the documentation public, currently, only a few
government websites in India have a link on their
websites detailing how citizens may obtain the
information.
2010 budget – a small step forward towards
increasing transparency
The 2010 budget by levying service tax on EDC has
brought slight respite to the consumers as, now builders
will have to disclose the additional charges. At the same
time, the system does not recognise that levying service
taxes would increase the acquisition cost of buyers,
which are in turn passed on to the consumers, especially
the financially and economically weaker sections of the 2
society. Also, it fails to recognise that the small cities  In terms of the section 2(f) of the
Act, information has been defined as
(Tier II and Tier III) are still emerging as real estate
any material in any form including
destinations, after the metros. Even a slight hike in
records, documents, memos, e-mails,
prices would affect the buying capacity of prospective opinions, advices, press releases,
customers in such cities. circulars, orders, logbooks, contracts,
reports, papers, samples, models,
Looking at a long-term solution, it is imperative, to not
data material held in any electronic
only increase transparency in the system but also to form and information relating to any
control the costs in order to quicken the development in private body which can be accessed
the region. The taxation should be reduced to a minimal by a public authority under any other
extent, such that it does not affect the consumer prices. law for the time being in force 
26 | Grant Thornton India
REITs and REMFs
The Indian Real estate sector currently lacks any monetisation
vehicle for capital intensive verticals such as commercial offices
and retail malls. Further, since the funding requirements for real
estate projects are significant, broad based portfolio
investments by individual investors is not feasible. A possible
solution could be in the form of Real Estate Investment Trust
(REIT) and Real Estate Mutual Fund (REMF).
These vehicles are primarily characterised by their investment in
real estate assets as well as limited liability for unit holders and
they generally engage in professional real estate management as
well. REITs have enabled small investors in most developed
economies to hold a diversified portfolio of real estate assets
which would otherwise not have been feasible. USA, Australia,
Japan and Singapore are the amongst the more developed
REIT/ REMF markets, with the necessary regulatory
framework in place and significant representation of such listed
instruments on their respective stock markets.
The following are the key benefits of investing in these vehicles
both to small investors as well as to the real estate industry:  restrictions contained therein should not be so onerous as to
• They enable investors (specifically small and mid-size
investors) to own a diversified portfolio of professionally
managed assets that might otherwise prove prohibitively
expensive
• These instruments provide an alternate source of capital to
the real estate industry other than traditional banks and
financial institutions. Being more stable and transparent
entities, REITs and REMFs provide better access to deeper
and more liquid capital markets
• The pass-through status of the vehicle and reduction in
transaction costs prevents leakage in returns, thereby
maximising returns to the investors
Although, the Securities and Exchange Board of India (SEBI)
issued draft REIT regulations in December 2007, it has not yet
notified the final regulations. While the REMF guidelines were
notified in May 2008, there have been only a couple of entities
which have sought registration under these guidelines. It is
therefore evident that the guidelines do not meet the
requirements of the real estate industry.
Considering the inherent advantages of REITs, the regulator
should notify the relevant guidelines at the earliest. While doing
so, it is critical that the guidelines should be practical and any
discourage investment. This will ensure channelised capital flow
into the real estate sector, resulting in reduced speculation, higher
liquidity and a sustainable long term growth.
27 | Grant Thornton India
Promoting self regulated professional bodies
There is a strong need to bring in consistency and
standardisation to boost confidence for all the stakeholders of
the real estate sector. For instance, the 2005 NBC provides
comprehensive guidelines for building construction. However,
each local municipality and urban development authority in
India has its own building code, which is mandatory for all
construction within their jurisdiction. All these local codes are
variants of the NBC and many of these codes have not been
revised or reviewed to ensure continuous compliance with the
changing safety and performance parameters.
In the recent past, an independent rating or certification for
each project, using pre-determined norms and benchmarks,
has been much debated. The Government does not have the
bandwidth to perform this function and feel uneasy in
delegating this task to independent agencies. However, self
regulated bodies such as the National Real Estate
Development Council (NAREDCO) have successfully set up
arrangements with CRISIL for project appraisal and finance.
Similarly, the Royal Institution of Chartered Surveyors (RICS)
is in the process of customising internationally accepted
standards for India.
  
As first steps, the sector should:
• prescribe ethical code of conduct for such professionals
• set up a regulatory mechanism for these professionals
• prescribe procedures and an accreditation framework for
appointing experts
• set up a peer review committee to resolve complaints for
professional misconduct
• frame guidelines and standards for the entire property life
cycle
The onus for promoting such professional bodies eventually lies
with financiers and consumers. The providers of capital must
demand appropriate certification from developers with due
inputs from professional engineers and surveyors. Deviant
financiers should be brought to task with swift enforcement
mechanisms. Similarly, in 2020, a consumer should be able to
buy real estate based on independent project ratings just like
he/she buys an air conditioner today based on ‘BEE’ ratings.
This standard setting exercise, as regulated by these professional
bodies, will result in a paradigm shift in quality, which has been a
persisting issue for this sector.
28 | Grant Thornton India
Way forward
In order to realise the aspiration of bringing the Indian real estate sector
at par with the global real estate sector, a coordinated effort and focus is
required from each of the key stakeholders of the sector, i.e., Regulators,
Developers, Investors, Bankers, Consumers, etc.
Regulators
The recently introduced Real Estate Bill is one more significant step
towards organisation of the Indian real estate industry. The country has
witnessed a magnificent growth in telecom, insurance, capital markets, etc.
after the introduction of regulatory bodies such as the Telecom
Regulatory Authority of India (TRAI), the Insurance Regulatory and
Development Authority (IRDA), and the SEBI. A real estate regulator
can be a harbinger of reforms, in a similar way.
Inclusion of all stakeholders
The Real Estate Bill should consider expanding its coverage to all
stakeholders of the Real Estate Sector. Given the different governing
bodies in this sector, it is important to empower the regulator, to remove
redundancies and provide a level-playing field to all stakeholders.
Thrust to e-governance
The regulator may consider setting up a public portal for real time project
monitoring of various projects on the basis of transparent and well
publicised benchmarks. This will help buyers make an informed choice
and will facilitate comparison based on objective criteria. Recently, Cloud
Computing-based Project Monitoring applications are gaining acceptance
with large organisations such as Central Public Works Department, the
Noida Authority and Hindustan Prefab Limited.
Developers
This is the apt time for the Developers for enhancing the image of the sector.
As seen in the telecom industry, it only takes one participant to make a change
and the rest of the industry will follow suit.
Promoting self governance
Based on the industry views, self governance in the sector would drastically
improve the transparency in this sector. For instance, independent rating of
developers based on objective parameters (financial strength in terms of
leverage, liquidity, scale of operations, intellectual expertise of the management
team and past performance) would help the industry in the long run.
Financers
Finance is a critical component of the real estate development cycle. Unlike
Real Estate which is a “State” subject, finance is controlled centrally by the
Reserve Bank of India. Hence, it is easier to monitor the financing activities at a
central level.
Prescribe guidelines for lending to Real Estate sector
By prescribing specific lending guidelines, banks can ensure that appropriate
due diligence is carried out and only the deserving projects get financed. All
project appraisals must be performed according to pre-determined guidelines
and verified independently prior to fund disbursement.
Strict enforcement and disciplinary action
Monitoring and enforcement mechanisms should be robust and ensure that
lending guidelines are not defeated by circumvention or by collusion. Timely
action against non-compliance would help in increasing faith in the financing
system and ultimately lead to greater liquidity. 
29 | Grant Thornton India
 Our vision for Indian real estate industry is not a
prediction but our belief in what can be achieved through
mobilising the human, technological and financial
resources for a common better tomorrow.

 
 
About Assocham

The knowledge chamber Mission

Evolution of Value Creator ASSOCHAM initiated its endeavor
of value creation for Indian industry in 1920. It has witnessed
upswings as well as upheaval of Indian Economy and
contributed significantly by playing a catalytic role in shaping
up the Trade, Commerce and Industrial environment of the
country. ASSOCHAM derives its strength from the following
Promoter Chambers: Bombay Chamber of Commerce and
Industry, Mumbai Cochin Chamber of Commerce and
Industry, Cochin Indian Merchants' of Commerce, Mumbai
The Madras Chamber of Commerce and Industry, Chennai
PHD Chamber of Commerce and Industry, New Delhi.
Vision
Empower Indian enterprise by inculcating knowledge that will
be the catalyst of growth in the barrier less technology driven
global market and help them upscale, align and emerge as
formidable player in respective business segment.
As representative organ of Corporate India, ASSOCHAM
articulates the genuine, legitimate needs and interests of its
members. Its mission is to impact the policy and legislative
environment so as to foster balanced economic industrial and
social development. We believe education, health, agriculture
and environment to be the critical success factors.
Goals
To ensure that the voice and concerns of ASSOCHAM are
taken note of by policy makers and legislators. To be proactive
on policy initiatives that are in consonance with our mission.
To strengthen the network of relationships of national and
international levels/forums. To develop a learning
organisation, sensitive to the development needs and concerns
of its members. To broad-base membership. Knowledge sets
the pace for growth by exceeding the expectation, and blends
the wisdom of the old with the needs of the present.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM)

ASSOCHAM Corporate Office
1, Community Centre, Zamrudpur, Kailash Colony, New Delhi – 110 048
Tel : 011-46550555 (Hunting Line) Fax: 011-46536481 / 82
Email: assocham@nic.in Website: www.assocham.org

 
 
About Grant Thornton
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Today, the firm has grown to be one of the
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Our real estate practice
Real estate is a complex business. Owing to
its capital intensive nature, any turbulence in
the economic and business environment can
affect a real estate business in a number of
ways.
With its depth of knowledge and global
experience, Grant Thornton India can assist
you in mitigating these inherent risks. At the
same time, we can help you identify and
leverage potential opportunities as well.
Assurance, tax and advisory services are just
the beginning of our suite of services for real
estate companies.
Please feel free to contact our specialists and
know more about how Grant Thornton can
assist you achieve your objectives.
Solutions
Financing your business
• analysing funding requirements
• preparing submissions to financiers
• benchmarking terms and pricing
• considering alternative sources
Working capital management
• managing your cash
• forecasting and re-forecasting
• optimising tax cash flow savings
• improving management information
Protecting profits
• product portfolio analysis
• optimising pricing strategy
• enhancing terms of trade
• identifying overhead savings
Operations and cost reduction
• establishing cost reduction programmes
• improving supply chain
• enhancing operational efficiency
• outsourcing back office functions
Communication and compliance
• advising on financial reporting requirements
• clarifying directors’ responsibilities
• mitigating fraud risk
• evaluating and designing controls
Human capital management
• optimising pension and benefit schemes
• retaining the right staff
• devising tax efficient packages
• enhancing reward packages
Strategic direction
• benchmarking against competitors
• entering new markets
• identifying acquisition opportunities
• reviewing business plans

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Road no. 3
Banjara Hills
Hyderabad 500 034
T +91 40 6452 8666
F +91 40 2354 0224
Mumbai
Engineering Centre
9 Mathew Road
Opera House
Mumbai 400 004
T +91 22 6626 2600
F +91 22 2367 1624
Pune
401 Century Arcade
Narangi Baug Road
Off boat Club Road
Pune 411 001
T +91 20 4105 7000
F +91 20 4105 7099
Acknowledgements:
Anirudh Chari, Anupam Kumar, Rajul
Mathur, Vikram Jethwani, Amit Jaiswal,
Sumeet Abrol, David Jones, Devyani
Singh, Deepak Joshi, Nidhi Maheshwari,
Vishwas Panjiar and Neeraj Sharma (in
random order)
Design and artwork: Vikram Jethwani
© 2010 Grant Thornton India
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