The real estate sector in India is being recognized as an
infrastructure service that is driving the economic growth engine of
the Country. Currently about 5% of India''s GDP is contributed by the
housing sector. Demand for real estate is expected to grow at a
compounded annual growth rate (CAGR) of 19% until 2014. Tier- I
metropolitan cities are projected to account for about 40% of this.
Growing requirements of space from sectors such as education, health
care and tourism provide opportunities in the real estate sector.
India''s GDP had downward movement consistently in the last three
quarters of 2012. In 2013, this trend will prevail - though the quantum
of revision will be lower. The country''s economic environment will
certainly improve in 2013, with a corresponding (though lagging) gain
in momentum for real estate. The most tangible benefits of economic
improvements on the Indian real estate space will be seen in 2013-14.
In Chennai, Old Mahabalipuram Road and GST Road are emerging as good
realty destinations as there are a significant number of under
construction projects by good developers. In 2011, Chennai has
witnessed the maximum supply and the city has witnessed an average of
22-33 percent unsold stock in last four years. Although, the market
faced 36 percent fall in new launches.
According to a real estate research, 2012 was not a thriving year for
the real estate sector and even in 2013 the real estate market is not
likely to witness the graph of success. Although there is a steep rise
in residential properties, the private equity sector dried up. If the
land acquisition bill and the real estate regulation bill is approved,
there might be a revival in the economy.
During the year under review, your Company has made an average
performance in terms of Sales and Profits. In terms of operational
performance, many of its projects which are large residential complexes
and Township are under Joint Venture and are progressing well. Your
Company will earn good profits from these projects in the year to come.
Recent past your Company has launched a residential project comprising
of 1,94,145 Sq ft. at Mugappair, Chennai. Another residential project
is in pipeline which is located at Nandambakkam, Chennai will be
We at Arihant, believe in building integrity by providing qualitative
service and maintaining healthy and cordial relationship with our
Customers and Investors.
Your Directors wishes to place on record its sincere thanks to Bankers,
Financial Institutions, Chennai Metropolitan Development Authority and
Corporation of Chennai and related departments of Govt. of Tamil Nadu
for having supported us on all our efforts and endeavours and all those
who work for or are associated with Arihant.