Industry Profile: The real estate sector is among the most globally recognized sectors. In India, real estate is the second largest employer after agriculture and is slated to grow 30 percent over the next decade. The real estate sector comprises four sub-sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the development of the corporate environment and the demand for office space and urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect, and induced effects in all sectors of the economy.
Indian Real estate Market is expected to reach US$ 180 billion. NCR & Mumbai are the biggest hospitality markets in India, followed by Bengaluru, Hyderabad & Chennai. Besides hotels, the hospitality market comprises serviced apartments & convention centers. Few large developers with a pan-India presence dominate the market, and the operating model has shifted from sales to a lease & maintenance. Rapid growth in services sectors: IT/ITeS, BFSI & Telecom, Rising demand from MNCs, Demand for office space in Tier 2 cities. Mumbai, NCR & Bengaluru account for 60 percent of total office space demand in India as of 2017. The office space absorption in 2016 across the top eight cities amounted to 34 million square feet (MSF), with Bengaluru recording the highest net absorption during the year, business activity shifting from CBDs to SBDs, Tier 1 to Tier 2 cities. India’s rank in the Global House Price Index has jumped 13* spots to reach the ninth position among 55 international markets, on the back of increasing prices in the mainstream residential sector.
Fundraising and investments in India’s office space sector, which have already reached more than US$ 2 billion in 2017, are poised to rise higher with further foreign investment of US$ 1.4 billion expected, as local developers and foreign investors expand their portfolios through fresh investments, acquisitions or launch of Real Estate Investment Trusts (REITs) to build and acquire office assets.
Company Profile: The company operates the real estate segment and Hospitality, based in Mumbai. It handles residential, commercial, retail, social infrastructure, and hospitality projects. Its main interest is residential, Office Space, Retail, Hospitality, and Social Infrastructure properties.
Its residential projects include Oberoi Splendor, Oberoi Splendor Grande, Prisma by Oberoi Realty, Oberoi Sky Gardens, Oberoi Sky Heights, Oberoi Springs, Esquire by Oberoi Realty, Exquisite by Oberoi Realty, Oberoi Seven, Oberoi Woods, Beachwood House, Oberoi Gardens, Oberoi Parkview, Eternia & Enigma by Oberoi Realty, Privieria by Oberoi Realty and Three Sixty West. Its commercial projects include Oberoi Chambers, Commerz, and Commerz II. Its retail project includes Oberoi Mall. Its social infrastructure project includes Oberoi International School. Its hospitality project consists of The Westin Mumbai Garden City.
Shareholding Pattern: BSE Filing
Financial and Ratio: [table id=204 /]
Future Prospects: Biggest issue in real estate is now increasing inventory. RERA is one more issue for the company and, in fact, for the whole sector. Demonetization and GST also affect this company. The operating cycle in the real estate business is around 4-5 years, and keeping good cash flow in that business is challenging. Still, this company is successfully doing it, making it sufficiently attractive. The company is launching new plans, and every other thing is looking good. Economic times and some other predicts that in the medium-term real estate may pickup.
