The Indian Real Estate Sector

India’s real estate market is poised for tremendous growth potential with a wave of development and investment. The sector continues to display strong performance on the back of robust economy, rising income levels, consumer friendly loans, income tax incentives and a benign FDI policy. The sector, fuelled by the demand from sunrise sectors of IT & ITES industry and the upcoming retail sector, has witnessed emergence of national level players, establishment of townships/mall formats on suburban development models and the advent of multinationals.  

The size of the Indian real estate market is USD 12 billion and is currently growing at a rate of about 30% annually. With this stormy pace, this burgeoning sector is estimated to touch $50 billion by 2010, from its existing level. With the real estate prices and demand increasing unmitigated, the credit requirement in the sector has also increased substantially.

The YES Expertise:

To take advantage of the upcoming opportunities, Realty Banking Group has been established with a focus on real estate sector. The operating strategy of the group hinges on leveraging the funded products to generate fee based income in the real estate domain comprising of residential, commercial, retail, theme Parks, SEZ’s and hospitality (hotels and tourism) sectors.

We at YES Bank believe that the high potential though sensitive real estate sector demands customized approach to banking and thorough understanding of the sector & its dynamics. As a result, our realty group comprises of well experienced professionals having in-depth knowledge of the dynamics of construction & real estate sector.

We, at YES Bank, shall be offering funding and advisory assistance as follows:

Advisory Services in Real Estate:

• Project Conceptualization
• Joint Venture partner identification
• Developing bankable transaction structures
• Legal aspects including tax sheltering

Financing of Realty Projects:

• Project structuring & syndication
• Term lending
• Securitization of lease rentals receivables

In addition to being financier, our knowledge based approach has resulted in meaningful relationship with government as well as other leading institutions and corporates in the sector.