Real Estate Education in India Anil Kashyap and

Real Estate Education in India Anil Kashyap and Jim Berry The 3 rd ERES Education Seminar, Paris 7 -8 th December, 2007 www. ulster. ac. uk

Real Estate Sector in India • Second fastest growing economy - GDP growth rate of 9. 4% (FY 2006– 2007) • Volume of India’s real estate market is expected to triple to $90 billion by 2015 • Demand for 200 million square feet over the next 5 years 2 • Existing shortage of 20 million residential units • Over 500 shopping malls are under construction and will be operational by 2008 • (TCM now JLLM, 2007) www. ulster. ac. uk

Real Estate Boom Policy changes introduced by the Government in February 2005 allowed 100 per cent foreign investments in construction projects with fast-track approvals. 3 www. ulster. ac. uk

Real Estate Services and Education • Changing business environment is attracting investments in real estate sector in India • Growing demand for the new skills and knowledge • Multiply over next decade • Increasing need and demand for real estate specialist education • Need for research 4 www. ulster. ac. uk

Research Design • Examination of the websites and several graduate programmes in India – No formal Real Estate degree courses in the education system – Real Estate principles are taught in Business School environment • Mailing list was developed from the international real estate & investment consultants, and property developers – to assess the need and – demand of real estate education 5 www. ulster. ac. uk

Research Approach • Online survey sent to 45 International Real Estate Consultants, Developers and Investment Consultants in Nov 2007. • 32% response rate • Stage I – Assessment of need and demand using the questionnaire (Dec 2007) • Presentation of results and feedback • Stage II – Structured discussion with key stakeholders in India (Jan-Feb 2008) • Stage III -Findings dissemination stage 6 www. ulster. ac. uk

Which of the following best describes the role of your organisation? 18% 36% Real Estate Consulting Service (Q 1 a) 45% Real Estate Investment & Financial Consultant (Q 1 c) Real Estate Developer (Q 1 b) www. ulster. ac. uk

Please indicate the real estate sectors within which your company operates? Real Estate Sector Core infrastructure (Q 2 a) % 9. 09% Retail (Q 2 b) 72. 73% Commercial Offices (Q 2 i) 81. 82% Entertainment (Q 2 c) 27. 27% Leisure and Hospitality (Q 2 d) 36. 36% Townships/Residential (Q 2 e) 81. 82% Information Technology (IT) Parks (Q 2 f) 54. 55% Business Parks/Industrial Parks (Q 2 g) 63. 64% Hotels (Q 2 h) 63. 64% www. ulster. ac. uk

How many of employees undertaking specialist real estate functions Calculation Sum Result 1777 Standard Deviation 274. 61 Average 161. 54 Minimum 1 st Quartile (Q 1) High Potential demand 3 25 2 nd Quartile (Median) • number employed & • number having real estate education 77. 5 3 rd Quartile (Q 3) Large gap between - 164 Maximum 1000 www. ulster. ac. uk

Other professional qualifications employees in real estate functions Business Administration (Q 5 a) 11 100. 00% Engineering (Q 5 b) 5 45. 45% Planning/Architecture/Urban Design (Q 5 c) 8 72. 73% Law and Taxation (Q 5 d) 2 18. 18% 11 100. 00% 2 18. 18% Finance/Accountancy (Q 5 e) Econometrics and Forecasting (Q 5 f) • High proportion of employee with Business Administration • Next higher proportion with Planning/Architecture/Urban Design www. ulster. ac. uk

Perception on skills gap in professional undertaking real estate related functions? • 91% perceive skills gap www. ulster. ac. uk

In your opinion, is there a need for professionals with Real Estate qualifications in India? Yes No Answer 9% 91% • High level of need for professional with real estate qualifications www. ulster. ac. uk

In your opinion, do you think there is a demand for Real Estate degree courses in India? Yes No Answer 9% 91% • High level of demand for real estate courses www. ulster. ac. uk

Which level of Real Estate degree programme do you think would be most appropriate in meeting the immediate demands of real estate sectors in India 100. 00% 90. 00% 80. 00% 70. 00% 60. 00% 50. 00% 40. 00% 30. 00% 20. 00% 10. 00% Executive Programmes (Q 8 b) Undergraduate Postgraduate Degree Courses Degree (Q 8 c) Programmes (Q 8 d) Ph. D by Research (Q 8 e) www. ulster. ac. uk

• Demand for short executive and postgraduate course • Research (Ph. D) will follow after PG courses are established • 82% ranked Business Administration degree best to fill in demand in absence of real estate courses • 55% and 36% ranked degree in Finance and Economics www. ulster. ac. uk

State which courses would best meet the need of your company in undertaking real estate functions? • 91% considers that specialist real estate education should be offered in India • 63% considers that real estate stream should be attached to MBA programmes www. ulster. ac. uk

Given the growth in real estate industry, do you consider that specialist Real Estate Degree courses should be offered in India? Yes No Answer 9% 91% • 91% considers that specialist real estate education should be offered in India www. ulster. ac. uk

Role of private sector in development and delivery of Real Estate education in India? • 100% respondents considers their role in development & delivery of real estate education • 90% willing to participate in development & delivery of real estate education • 82% willing to sponsor their employees for real estate education www. ulster. ac. uk

Does your company encourage real estate employees to obtain membership of professional bodies? No answer Yes (Y) 9% No (N) 36% 55% • 55% encourages real estate employees to obtain membership of professional bodies www. ulster. ac. uk

Key messages • Growing need for real estate professional education in India to support a growing economy base • High demand need factors for real esate education • Low supply of specialist professionals • Business Schools have capacity and infrastructure to deliver on short term basis. • Key role for private sector • Need for policy makers/key stakeholders to address this issue 20 www. ulster. ac. uk