Architecture and Economy

Role of Professional Bodies

and Institutions:
Indian Institute of Architects
Council of Architecture

Indian institute of Architects:

The Indian Institute of Architects (IIA) is the national body of Architects in the
country.
Indian Institute of Architects was registered under the Societies Registration
Act,1860.
IIA started in 1917.
5 members of CoA are elected by IIA from among its members.
The institute today has more than 15000 members.
The Institute has a major role to play in promoting the profession of
architecture
IIA helps in organising and uniting in fellowship the Architects of India to
promote aesthetic, scientific and practical efficiency of the profession both in
Practice and in Education.
IIA is represented on various national and international committees connected
with architecture, art and the building industry and is also actively associated
with International Union of Architects (UIA) Commonwealth Association of
Architects (CAA) and South Asian Association for Regional Co-operation of
Architects (SAARCH).

Council of Architecture
CoA more powerful than IIA.; more powers
CoA is an autonomous statutory body of India incorporated under the
Architects Act, 1972.
CoA has been charged with the responsibility of enforcing the Act
throughout the country.
The functions of CoA include:
Registration of Architects.
Regulating architectural profession and education at all levels.

Economic Reality of practicing

in India
After the independence India adopted a socialist-inspired economic model
with elements of capitalism.
India adopted a Soviet Union like centralized and nationalized economic
programs (5 year plans).
This (Nehru) policy was extended too far beyond its use and led to decline in
Indian economy.

Post Independence Economy

The "Socialist rate of growth" is used to refer to the low annual growth rate.
It stagnated at around 3.5% from the 1950s to 1980s.
per capita income growth averaged extremely low 1.3% a year
At the same time, S. Korea grew by 10% and Taiwan by 12%..
The post independence-era Indian economy (from 1947 to 1991) was a
Mixed economy with an
1.Inward-looking
2.Centrally planned
3.Import-substituting economic model
All these failed to take advantage of the post-war expansion of trade and
that nationalized many sectors of its economy.
India's share of global trade fell from 1.3% in 1953 to 0.5% in 1983.
This model contributed to widespread inefficiencies and corruption, and it
was poorly implemented.

1947 to 1991
The economic development in India followed socialist-inspired policies for
most of its independent history, including state-ownership of many sectors;
India's per capita income increased at only around 1% in the three decades
after its independence
Since the mid-1980s, India has slowly opened up its markets through
economic reforms.
After more fundamental reforms since 1991 and their renewal in the 2000s,
India has progressed towards a free market economy.
In the late 2000s, India's growth reached 7.5%, which will double the
average income in a decade.

Indian Economy Today

India is the 10th largest economy in the world and the 3rd largest by
purchasing power parity.
The economic growth has been driven by the expansion of services that
have been growing consistently faster than other sectors.
It is argued that the pattern of Indian development has been a specific one
and that the country may be able to skip the intermediate industrialization
phase in the transformation of its economic structure.
Serious concerns have been raised about the jobless nature of the
economic growth.
Favorable macroeconomic performance has been a necessary but not
sufficient condition for the significant reduction of poverty amongst the
Indian population.

Real Estate and Construction

Sector
Real Estate Sector in boom.
Driving Factors:
Booming Economy.
Rise in income and growing middle class, increasing demand for quality residential
real estate and real estate as investment option.
Relaxation of legal rulings and processes.
Infrastructure improvement.
Growth of the software IT based companies and Demand for new office space driven
by IT firms.
The increase in the population level, the accumulated resource capital with the new
young generation working in the IT companies, the presence of NRIs and their
interest in investing in the Indian real estate market the liberalization policies taken
up by the Indian government the introduction of the Real Estate Investment Trust
and the Real Estate Mutual Funds the development of the Special Economic Zones all
over India into real estates the increase in the concept of nuclear families rise in the
tourism industry of India.

Real Estate and Construction

Sector
Real Estate Sector in boom.
Driving Factors:
Booming Economy.
Rise in income and growing middle class, increasing demand for quality residential
real estate and real estate as investment option.
Relaxation of legal rulings and processes.
Infrastructure improvement.
Growth of the software IT based companies and Demand for new office space driven
by IT firms.
The increase in the population level the accumulated resource capital with the new
young generation working in the IT companies the presence of NRIs and their
interest in investing in the Indian real estate market the liberalization policies taken
up by the Indian government the introduction of the Real Estate Investment Trust
and the Real Estate Mutual Funds the development of the Special Economic Zones all
over India into real estates the increase in the concept of nuclear families rise in the
tourism industry of India.

Development across India

Following cities are attracting MNCs, corporate/real estate developers:
Tier 1: Mumbai, Delhi (NCR), Bangalore
Tier 2: Hyderabad, Chennai, Mangalore, Ahmedabad, Pune, Chandigarh.
Tier 3: Jaipur and Cuttack.
Special Economic Zones

Special Economic Zones

SEZ is a geographical region with more liberal economic laws than the rest
of the country.
Set up with an objective to increase direct investment by foreign investors.
Came into existence in India in April, 2000.
28 SEZ in India
Development of SEZs in various segments such as IT, Bio technology, Gems
and jewellery, textiles and technology intensive industries.
Attract developers and corporate house e.g Reliance interested in Gurgaon,
Navi Mumbai.

Residential Real Estate and

Construction
Indian house prices rose rapidly from 2002 to 2007. Strong economic
growth and urbanization supported house prices, while in city centres a
housing bubble was encouraged by inadequate infrastructure, lack of
planning and antiquated land use laws.
The price increases were accompanied by low interest rates. Home loan
rates fell to a historically low rate of 7.5% in early 2004 until 2005.
From 2005 to 2007, the economy grew at 8.9% per annum, making it one of
the worlds fastest growing, after 7.6% per annum growth from 2003 to
2004.
The liberalization of major sectors of the Indian economy during the early
1990s brought a rapid influx of foreign direct investment into the country
increasing the demand for housing and causing a ripple effect in the
construction sector.

Residential Real Estate and

Construction
From 2000 to 2006, residential property became significantly less
affordable. By 2002, a dwelling in Mumbai cost around 85 times the average
annual average income. By 2006, residential properties in Mumbai cost 100
times the average annual income.

Commercial Real Estate

The demand for new office space in India has grown from an estimated 3.9
million sq. ft in 1998 to over 16 million sq. ft in 2004-05.
70% of the demand for office space in India is driven by over 7,000 Indian IT
and ITES firms and 15% by financial service providers and the
pharmaceutical sector.
In 2005 alone IT/ITES sector absorbed a total of approx 30 million sq. ft and
is estimated to generate a demand of 150 million sq. ft. of space across
major cities by 2010.