Investing in
Indian Real Estate
Amplus Research Darshil Shah ([email protected]) Indian Real Estate
A. Key locations in India ...... 3 a. Returns from real estate in the past few years ...... 4 b. Vibrant locations to provide better returns in future ...... 4
B. Real Estate ...... 10 Gujarat Overview ...... 11 Ahmedabad-Gandhinagar ...... 26 Surat ...... 30 Vadodara ...... 34 Mumbai ...... 37 NCR ...... 39 Other Cities Snapshot ...... 41 a. Hyderabad ...... 41 b. Bangalore ...... 42 c. Pune ...... 43
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Key Locations in India
A. Key locations in India
a. Returns from real estate in the past few years
b. Vibrant locations to provide better
returns in future
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Key Locations in India
A. Key locations in India a. Returns from real estate in the past few years
Returns from real estate are not identical at all locations. The investment made at the right location at right time would deliver extraordinary returns. For eg. In the past four years years residential locations in cities such as Ahmedabad and Mumbai performed better than most cities including cities like Hyderabad.
Figure 1: Location is key for superior returns Hyderabad Ahmedabad Chennai Mumbai Bengaluru 300 Index to 100 250
200
150
100
50
0 HY1 HY2 HY1 HY2 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2008 2009 2010 2011
Source: NHB
b. Vibrant locations to provide better returns in future
A few locations in India have potential to outperform other locations, considering their: i. High economic base; ii. High growth rate; iii. High urbanization base; iv. High urbanization rate; and v. Other factors like political stability, infrastructure etc
Delhi, Maharastra, are Gujarat offer huge real estate opportunity: 1. Among states having economy of more than $100 billion, Maharastra and Gujarat have higher per capital income than other states. Delhi has the highest per capita income compared with other states, though its economy is around $56 billion only.
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Key Locations in India
Figure 2: Gujarat is among the few $100 billion economies in the country 250 224.12
200
150 128.09 123.56 119.13 104.87 96.57 86.83 100 56.34 50
0 Delhi West Uttar Bengal Gujarat Andhra Pradesh Pradesh Karnataka TamilNadu Maharashtra Source: Planning Commission of India
Figure 3: Among bigger states, Delhi, Maharastra and Gujarat have highest per capita income (INR) Per Capita NSDP FY 2009-10 * at current prices 140,000 116,886 120,000 100,000 74,027 80,000 63,961 63,547 52,097 51,025 60,000 46,492 40,000 20,000 0 Delhi Gujarat Andhra AllIndia Pradesh Karnataka TamilNadu
Maharashtra Source: Planning Commission of India
2. Gujarat, Maharastra, Delhi, witnessed the highest average real economic growth rate in the past ten years.
Figure 4: Among bigger states, Gujarat was the fastest growing state for last 10 years Average real growth rate from 02-03 to 10-11 12 10.42 9.98 9.82 10 8.95 8.11 7.95 7.68 8 6 4 2 0 Delhi Gujarat Andhra All-India Pradesh Karnataka TamilNadu Maharashtra Source: Planning Commission of India
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Key Locations in India
Similarly, Gujarat and Maharastra have witnessed the highest average industrial growth rate among bigger states.
Figure 5: Among bigger states, Gujarat led in industrial growth
Growth rate of NSDP in Industry 14 12.65 12 9.24 10 8.54 8.32 7.25 8 6.76 6.61 6 4 2 0 Delhi Gujarat Andhra AllIndia Pradesh Karnataka TamilNadu Maharashtra Source: Planning Commission of India
3. Delhi, Gujarat and Maharastra are among one of most urbanised states in the country.
Figure 6: Among larger states, Gujarat has higher Urban population Urban population 120 97.5 as % of total state population 100
80
60 48.45 45.23 42.58 38.57 33.49 40 31.16
20
0 India Delhi Gujarat Andhra Pradesh Karnataka TamilNadu Maharashtra Source: Planning commission of India
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Key Locations in India
And Delhi, Gujarat, Maharastra have witnessed high urbanisation growth rates among the large states.
Figure 7: Among larger states, Gujarat witnessed higher urbanisation rate
% decadel growth rate of urban population 40 36.26 35.83 35 31.8 31.27 30 27.16 26.56 23.67 25 20 15 10 5 0 India Delhi Gujarat Andhra Pradesh Karnataka TamilNadu Maharashtra Source: Planning Commission of India
As per Mckinsey report, the trend of urbanisation is expected to continue and India will have at least 13 cities with population more than four million.
Figure 8: Fastest growing states will continue to exibit the highest urbanisation rates
Source: Mckinsey
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Key Locations in India
Real Estate of prime cities of Maharastra, Gujarat and Delhi poised for exceptional returns: States like Maharastra, Gujarat, Delhi have not only recorded above- average growth rate on a higher base but also have better per capita income, a higher population base and higher urbanization rates than many states. The economic growth rate of these three states is expected to remain robust. These three states are expected to be among the most developed states in the country by 2020 and will together contribute significantly to country’s GDP. Further, due to healthy government policies, states such as Gujarat may outperform expected growth.
Among the large cities, apart from IT cities such as Bangalore and Hyderabad, cities of Gujarat like Surat, Ahmedabad, and Vadodara have witnessed one of the highest population growth rates in the last decade.
Figure 9: Surat and Ahmedabad among the top growing cities of the country
(% growth) Population Growth of Indian Cities
Growth 01-11 Growth 91-11 100
80
60
40
20
0 Surat Delhi Pune Kolkata Mumbai Chennai Bangalore Hyderabad Ahmedabad Source: Census of India,2011
Figure 10: Ahmedabad’s population is closer to Hyderabad and Surat’s is closer to Pune and may overtake them in the next decade.
(Lacs) Population of Indian Cities 2011 200 184 163 160 141
120 87 85 77 80 64 50 46 40
0 d rat ā ū b ā Pune S Delhi Mumbai Kolkata Chennai [Madras] [Calcutta] Bangalore Hyderabad Ahmad Source: Census of India,2011
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Key Locations in India
Figure 11: The expected 4 million population cities of India can be thus categorised as under: Most Favored Cities for Growth but Untapped cities for Other Cities Investment investments Mumbai Ahmedabad Kolkata Delhi/NCR Surat Kanpur Bangalore Vadodara Nagpur Hyderabad Jaipur Pune Chennai Mumbai/NCR/ Bangalore are robust 3 out of 4 cities located in the Nagpur, Kanpur growing below real estate markets in the country fastest growing state Gujarat and national average; whereas Kolkata getting maximum benefit from their are expected to get maximum is stagnant. large economy, the country’s high benefit of the state’s high growth. growth, urbanization, higher population base. During the past 5-6 years, the six most favoured cities shared almost entire $15 billion investment made by real estate private equity players in India. A next few “Growth but Untapped cities” could also selectively provide superior returns. Source: Company research
Figure 12: Amplus Model Portfolio Typical Real Estate Fund Portfolio Amplus Model Portfolio Mumbai Mumbai National Capital Region National Capital Region Bangalore Bangalore Hyderabad Ahmedabad Chennai Surat Pune Vadodara/Rajkot Source: Company Research
Key Consideration for replacing Hyderabad / Chennai / Pune with Ahmedabad / Surat / Vadodara / Rajkot (“Vibrant Cities”): Vibrant Cities have: a. High population base Ahmedabad b. Higher Urbanization rate Rajkot Vadodara c. Key cities of Gujarat, the state which is: Surat i. One of the most developed in the state Pune ii. Have high urbanization rate Hyderabad iii. Have higher GDP base Chennai iv. Have highest growth rates v. Have high per capita income d. The four cities are located on a stretch of 300 km and hence have lesser geographical spread than the other three cities e. Untapped market by real estate private equity players f. High industrial base g. Highest investor interest in setting up new industries h. Major infrastructure projects under execution
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B. Real Estate
Gujarat Overview
Ahmedabad-Gandhinagar
Surat
Vadodara
Mumbai
NCR
Other Cities Snapshot a. Hyderabad b. Bangalore c. Pune
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B. Real Estate
Gujarat Overview
Gujarat is located in western India and has one-third of the country’s coastline. The state has a population more than 60 million (2011 census), comprising around 5% of country’s population.
According to Population Census 2011, the state witnessed a decadal (2001-11) growth rate of 19.2% vs. an all-India average of 17.64%. Average decadal population growth rate of Gujarat has been 20% over the past three decades.
Gujarat is one of most urbanized states in the country having more than 42.58% people residing in urban areas as per 2011 census.
The state has literacy level of 79.31% vis-à-vis an all-India average of 74.04%.
Figure 13: Gujarat has high urban population and high urbanisation Urban population Growth on urban population (RHS) % of total population (RHS) 30 45 population in Mn 40 25 35 20 30 25 15 20 10 15 10 5 5 0 0 1951 1961 1971 1981 1991 2001 2011 Source: Census of India,2011
Gujarat is the land of entrepreneurs and it significantly contributes to the country’s economic and financial growth. It accounts for about 30% of India’s stock market capitalization, 22% of exports and 9.5% of the workforce.
Figure 14: Gujarat contribution to India
Population 5%
Geographical Area 6%
No. of Factories 10%
Net Value (Manufacturing) 12%
Value of Output 16%
Fixed Capital Investment 17%
Exports 22%
Source: Government of Gujarat
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The state has the world’s largest grassroots petroleum refinery at Jamnagar, the country’s only LNG terminals at Hazira and Dahej, and it contributes significantly to the country’s diamond processing (80%), plastic industry (65%), and pharmaceuticals (45%) etc.
Figure 15: Gujarat Contribution to India and world
Source: Gujarat Industrial Development Corporation
Gujarat Economy Gujarat is one of the largest and fastest-growing economies in the country. The state is growing at 2–2.5% higher than the all–India average. Gross State Domestic Product of Gujarat is more than $104.5 billion, larger than many countries such as Bangladesh, Iraq, and Vietnam. Over the next 6-7 years, the state economy will be larger than many other countries such as Pakistan, New Zealand and Kuwait.
Figure 16: Gujarat GDP at the constant prices (INR Crore) Gujarat GSDP at constant prices Gujarat Growth rate (RHS) 400,000 20 15 300,000 10 200,000 5 0 100,000 -5 0 -10 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
1999-2000 Source: Government of Gujarat
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Gujarat’s per capita income is INR 63,961, which ranks fourth highest in the country. The national average is Rs. 46,492 (US$ 1033)
Figure 17: Gujarat per capita income is one of highest in the country
Source: Government of Gujarat
Gujarat is one of the most industrialized states of India with 45% share in GSPD and 31% share in manufacturing and its per capita GDP is almost twice that of the national average.
Figure 18: Gujarat is more industrialised state
Agriculture
7% 14% Forestry, fishing, mining & 10% quarrying 4% Manufacturing
Electricity, gas, water & 24% construction 31% Trade, hotels, transport, storage & communication Banking & Insurance 10%
Public Adm.
Source: Government of Gujarat
The state has been recognized for having one of most proactive governance and the government policies are being made to sustain the growth momentum. Figure 19: Visible roadmap to maintain the high growth rate in future Industrial Agricultural Services Present The highest growth rate of more Highest growth rate of more than More than 42% share in the than 12% in the country over the 9% in the country over the past economy and growing. past ten years ten years. (All-India average of 2.6%) Future High growth impetus through Completion of Sardar Sarovar Initiative to boost IT/ITeS and mega projects such as SIR, SEZ, project by 2015 to raise gross financial services through SEZs DMIC, PCPIR etc irrigated area from 30% to 46% and GIFT city (a globally of gross cropped area. benchmarked International Financial Centre (IFC) Source: Company Research
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Gujarat: Present growth factors
Gujarat has balanced development by bringing economic and social reforms in industries, businesses, agriculture, and livestock etc. Apart from having the highest industrial growth rate in the country, the state also has the highest agricultural growth rate in India with average growth rate more than 9% p.a. during the past five years. Gujarat has an excellent infrastructure and is one of leading industrial states in the country with world-class cities and educational institutions, a stable political environment, a hard working and knowledgeable workforce, and government policies that warmly and openly encourage overseas investments in a wide range of opportunities.
Infrastructure ▲ In a July 2011 report, The Economist noted that Gujarat's infrastructure competes with Guangdong - the economic engine of China ▲ Gujarat is the only state with 100% power supply. ▲ Is its the only state with highest number of ports. ▲ It has 1600 km coast line Comprising one-third of the country’s coastal boundary, the highest for any state. ▲ It is the only state in India to have a state-wide gas grid of 2,200 km. ▲ 87.9% of the total roads in the state are asphalt surfaced.
Inclusive Growth ▲ Agricultural growth has been 9% sicne the past five years. ▲ Gujarat has 98.86% village connectivity with all-weather roads, the highest in India ▲ 100% of Gujarat's 18,000 villages have electricity connection for 24 hours power through the Jyotigram Yojana. ▲ All villages are connected with broadband Internet
World-class cities ▲ In 2010, Forbes list of world's fastest growing cities included Ahmedabad at number three after Chengdu and Chongqing from China. ▲ Surat is also one of the fastest growing cities in the world. ▲ Vadodara is also one of fastest-growing city in India.
Efficient governance ▲ Gujarat was awarded the second best state in Asia Pacific category in ‘Improving transparency, accountability and responsiveness in public service’ in 2010. ▲ It was adjudged “the most market-oriented and business friendly state” (Forbes Magazine) ▲ It ranked number two in the economic freedom of the States of India 2011 report.
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▲ The state received four awards from Union Urban Development Ministry for implementation of JNNURM projects.
Base of top Industries ▲ Gujarat has the world's largest shipbreaking yard near Bhavnagar at Alang. ▲ It has India’s only Liquid Chemical Port Terminal at Dahej, developed by Gujarat Chemical Port Terminal Co Ltd. ▲ It has two of the three Liquefied Natural Gas (LNG) terminals in the country (Dahej and Hazira). ▲ 80% of India’s total diamond processing happens in Gijarat and the state accounts for 70% of jems and jewelry exports. ▲ The state accounts for 31% of India’s textile production.
Research and development ▲ Gujarat is also known for many national level institutions that include: • Space Applications Centre (SAC) • Indian Space Research Organization (ISRO). • Indian Institute of Management (IIM), Ahmedabad, • Physical Research Laboratory • National Institute of Fashion Technology • CEPT • IIT Gandhinagar
Figure 20: Investment climate in Gujarat
Source: Government of Gujarat
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Gujarat: Future
Several cities of Gujarat are poised to benefit extraordinarily from the several mega projects undertaken by the Gujarat government in the past few years. The projects would increase Gujarat’s share in industrial, service, and agricultural growth of country and will boost the overall national economy. The state achieved its growth by consistently moving to next level of growth enablers. Over a period of time, the state moved from cluster approach (83 clusters) to industrial estates (180 estates), and then to SEZs (55 currently). The state is now creating large infrastructure like DMIC, DFC, MMLP, and SIR to take the industrial growth of the state to the next level.
Figure 21: Industrial Development – A Progressive Approach
Investment Regions
V Delhi Mumbai Industrial Corridor (DMIC) 60 SEZs V Ahmedabad- Dholera Special Investment Region (SIR) Multi Product
Chemical V Petroleum, Chemicals & Petrochemical Textile Investment Region (PCPIR) Pharma V Gujarat International Finance Tech IT/ITES City (GIFT)
Electronics V Knowledge Corridor
Level of Level Integration 202 Industrial Estates Engineering V Integrated Township
Biotech
83 Product Gems & Clusters Jewellery
Scale of Holistic Development Source: Gujarat Industrial Development Corporation
Figure 22: Large scale projects underway to maintain high growth rate Project Objective Special Investment Regions Planned industrial development over more than 100 sq km; 13 such SIRs at (SIR) various stages of development. PCPIR Dedicated petro-chemical region; more than $90 billion investment already made. Delhi Mumbai Industrial Dedicated freight and railway corridor for mega-industrial development. Corridor (DMIC) SEZs 55 SEZs notified GIFT Creating Gujarat as a financial hub of India BIG 2020 Planned infra development of $ 200 billion by 2020 Multi-Model logistic park To provide logistics support to nodes coming under DFC Twin Cities Creating planned mega cities by extending boundaries Interlinking of Rivers To boost agricultural growth IT-ITeS To boost service sector contribution Vibrant Gujarat,2011 7936 MoUs worth USD 450BN investment in the state signed Biotech Parks Impetus to pharmaceutical and biotech industries Port Developments Capacity expansion to 1000 MMT by 2020 Source: Company Reseach
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Large-scale of development has happened on the “300-km Gandhinagar-Ahmedabad-Anand-Vadodara-Bharuch-Surat” stretch and is also witnessing major development now.
Figure 23: Development in Gujarat . 60 special economic special 60 zones(SEZs) across Gujarat Industrialcorridor (DMIC) Bio-Tech cluster pharma, textiles and engineering Chemicals, petrochem Gujarat International Finance-Tec City Savli Biotech Park Knowledgecorridor Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) Dahod Panchmahal Narmada Surat Valsad Kheda Himmatnagar Vadodara Navsari ToBombay Bharuch Gandhinagar Mehsana Anand Ahmedabad Patan Banaskantha Bhavnagar Surendranagar Special Special Investment Region(SIR) Amreli Rajkot Junagadh 60 special60 economic (SEZs) zones Gujarat across industrial202 estates across Gujarat Jamnagar Porbandar Kutch Petroleum and brass parts Soda and ash salt- basedindustries, cement and steel pipes Engineering and ceramics Soda ash and salt based 182 industrial182 estates Gujarat across 18 Captive18 Ports along 1600 km coastline Gujarat across Source: Government of Gujarat
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Special Economic Zones (SEZs): There are 55 SEZs currently in Gujarat covering approximately 27,125 hectares. These SEZs are involved in several sectors such as, biotechnology, power, handicraft/artisan, gems and jewelry and port- based multi-products. Dahej SEZ is a 1700 hectare multi-product scheme. Kandla SEZ, SUR SEZ and Surat Apparel Park are the three functional SEZs in Gujarat.
Figure 24: GIDC as Developer – Special Economic Zones
Sr. Name of the SEZ Type of Area No SEZ (in Hects.)
1. Dahej SEZ, Vagra, Multi- 1,700 Bharuch product
2. Gandhinagar EHTP 28 7 3 Electronic SEZ 2
3. Mega IT Projects IT/ITES 22 6 SEZ, Gandhinagar
4. Bio-Tech Park Bio-Tech 15 SEZ, Vadodara 4
5. Surat Apparel Park Apparel 56 1 SEZ 5 6. Ahmedabad Apparel 38 Apparel Park SEZ
7 ShilpGram- Handicraft 15 Handicrafts SEZ, timber Bhachau, Kutch based activities
Source: Gujarat Industrial Development Corporation
Gujarat SEZ success story so far:
• Gujarat has three operational SEZs covering 506 hectares; these are: o Kandla SEZ o SUR SEZ o Surat Apparel Park
• Seven Notified and operational SEZs, covering 9,810 hectares
• 15 Notified SEZ covering 6,114 hectares
• 22 formally approved SEZs in Gujarat covering 7,702 hectares
• 8 In-principle approval covering 2,993 hectares
Special Investment Regions (SIR): Gujarat is the first state to have passed the Special Investment Regions (SIR) ordinance. The SIRs are being developed as global industrial hubs with world-class infrastructure and adoption of global best practices. Appropriate authorities have been put in place to provide single-window clearances and offer effective dispute settlement.
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Gujarat is setting up 13 SIRs; each investment region has more than 100 sq km area and is under various stages of development.
Dholera SIR (about 100 kms from Ahmedabad) is being developed as one of the biggest SIR in Gujarat with high connectivity through expressways and metro rail to Ahmedabad and other nearby cities. The SIR will have its own international airport. About 40% of the area is dedicated for auto/auto ancillary, agri products and plastic products and 30% is dedicated to textile and 10% for IT/ITeS and Gems and Jewelry. It is estimated that the SIRs will create more than 800,000 jobs in future, supporting more than 2.5 million people.
Figure 25: Planned infrastructure for Dholera SIR
Source: Government of Gujarat
Figure 26: 13 similar SIR planned in the state
Source: Government of Gujarat
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Figure 27: Large-scale investment regions surrounding mega cities. Region Size of SIR City within 150 km Proposed Industries (Sq. km.) distance
Dholera 879 Ahmedabad (100 km) Biotechnology, IT/ITeS, education, auto and auto-ancillary, textiles
Changodar 319 Ahmedabad (25 km) Agro based, steel and metal, pharmaceuticals
Sanand – 177 Ahmedabad (25 km) Auto and auto ancillaries, general manufacturing, Viramgam pharmaceuticals, biotechnology and bio-pharma
Navlakhi 182 Rajkot (76 km) Ceramic, Engineering and automobiles
Hazira 195 Surat (20km) Chemical and petrochemicals, port-based industries
Aliyabet 169 Surat (80km) Entertainment, aquaculture and marine engineering /Vadodara (140 km)
PCPIR 453 Surat/Vadodara Refinery, petrochemicals (around 80 km)
Halol – Savli 122 Vadodara (20 km) Engineering, automobile ancillaries, engineering plastics, electrical
Pipavav 145 Bhavnagar (140 km) Logistics-based industries
Anjar 630 Bhuj (30 km) Port and port-based industries
Okha 196 Jamnagar (150 km) General manufacturing, pharmaceuticals, CRO, biotechnology and bio pharma
Simar 78 Junagarh General manufacturing, heavy engineering, electronics and pharma biotechnology
Santalpur 186 Mehsana Agro-based industries Source: Government of Gujarat/Company research
Figure 28: SIRs Status
Halol- Stages of Development PCPIR Aliya Bet Santalpur Changodar Pipavav Viramgam Okha Navlakhi Simar Anjar Savli
Selection of Consultants
Preparation of Feasibility Report and Concept plan
Notification of SIR
RDA Notification
Detailed Development Plan
EIA Study
Operationalzed
Completed Sent to Government In Process Under Progress
Source: Gujarat Industrial Development Corporation
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Dedicated Freight Corridor (DFC) and Delhi Mumbai Industrial Corridor (DMIC): A Dedicated Freight Corridor (DFC) is being set up between Mumbai and Delhi by Indian Railways to provide world-class infrastructure and enabling policy framework for industrial activity in high-impact areas surrounding it. DMIC is a high-impact industrial area within 150km distance on both the sides of DFC. Of the 20 industrial nodes identified across six states where DFC passes, six have been proposed for Gujarat alone.
DMIC is a mega infra-structure project of USD 90 billion with the financial and technical aid from Japan, covering an overall length of 1483 kms between the political capital and the business capital of India, i.e. Delhi and Mumbai.
It is expected to triple industrial output over the next five years.
Figure 29: DMIC: Proposed modules in Gujarat
Source: Government of Gujarat
Figure 30: DMIC nodes in Gujarat Investment Employment DMIC Node required (USD Mn) envisaged Palanpur-Sidhpur-Mehesana 1600 53500 Ahmedabad-Dholera 11000 250000 Vadodara-Bharuch 2400 84000 Bharuch-Dahej 6850 250000 Surat-Navsari 2300 84000 Valsad-Umbergaon 6100 69000 Source: Government of Gujarat
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Multimodal Logistics Park (MMLP): Gujarat shares 38% of the DMIC route covering Valsad, Surat, Vadodara, Anand, Ahmedabad, Mehsana, and Palanpur. This corridor is expected to predominantly carry container traffic, bulk and break- bulk cargo. To support this, MMLP is proposed where various value added services are rendered in addition to rail/road-based transportation.
The parks will provide excellent transport links via rail and road, custom clearance facilities, single-window services, and value added services.
GIDB has taken initiative for setting up logistics parks at five designated areas in Gujarat: 1. Ahmedabad-Surendranagar, 2. Palanpur-Mehsana, 3. Gandhidham-Samakhiali, 4. Bharuch-Dahej 5. Surat-Hazira
Port Gujarat has the longest coastline in India of 1600 km and its ports act as a gateway to the land-locked northern states of India. This reflects in the fact that Kandla port is India’s largest cargo handler by volume. Further, Gujarat has one major port and 41 minor ports across the coastline. The ports also offer various other facilities like ship building, ship breaking and an LNG terminal.
Figure 31: Gujarat act as a Gateway to land lock Northern states of India
Source: Blueprint for Infrastructure in Gujarat (BIG 2020)
Vibrant Gujarat,2011 Among all states, Gujarat is drawing the highest investor attention. During the “Vibrant Gujarat” summit, an investment of INR21t (USD450b) was committed commitment, which would generate potential employment for more than six million people. The success of 2011 the summit can be seen from the fact that Gujarat signed investment MOUs equivalent to all investment MOUs put together in
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the past. At the same time, completion of projects in Gujarat is much better than the all-India average. At present, 66% of the projects committed in 2005 have been closed and 75% of SSI projects committed in 2009 have been closed.
Figure 32: Vibrant Gujarat submit has attracted huge investor’s attention
Source: Government of Gujarat
BIG 2020 Gujarat Government is envisaging investment of ~$300 billion in various infrastructure project through its vision document Blueprint for Infrastructure in Gujarat (BIG 2020).
Land Acquisition Land acquisition in Gujarat is comparatively a smooth process. In the past, Gujarat Industrial Development Corporation (GIDC) has indentified, acquired, developed and allotted land successfully to many of big industrial projects. GIDC has acquired around 30,500 hectares of land and allotted 17,508 hectares of developed land and 4,685 hectares of raw land.
Figure 33: Progressive land acquisition policy helping industrial progress (Area in ha.) Land Procured during last 17 years 2,500 2,118 2,020 2,000
1,419 1,500 1,139 1,037 953 1,000 906 914 700 716 601 500 366 387 331 0 0 37 0
1994-95 1995-95 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Source: Gujarat Industrial Development Corporation
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Figure 34: Gujarat International Finance Tec-City : GIFT
Source: Government of Gujarat
The Government of Gujarat has set up ‘Gujarat International Finance Tech-City Company Limited’ (a joint-venture between Gujarat Urban Development Corporation Limited and Infrastructure Leasing & Financial Services) to develop and implement the project.
GIFT Concept A hub for the global finance services industry, state-of-the-art connectivity, and infrastructure and transportation access.
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Project Description and Component Mix GIFT would be the central business hub of the Integrated Development Plan sprawling over about 27,000 acres (about 104 sq.km)
Infrastructure Linkages Infrastructure services to support the businesses include connectivity, IT, walk-to-work housing, security and services.
A 12 km dedicated Expressway to the international airport is being built as part of the project
Mass Rapid Transit system is in place to link the project to the cities of Ahmedabad and Gandhinagar
Project Location The project is located 12 kms from the Ahmedabad international airport and 8 km from Gandhinagar alongside the National Highway No. 8
Figure 35: Contruction on GIFT site has already started
Source: Company Research
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Ahmedabad-Gandhinagar
City Synopsis
Figure 36: City at a Glance Location Central Gujarat Importance Gandhinagar is the capital of Gujarat; Population (2011) 6.3 million City ranking in India 7th (Population) Decadal population growth 40% Key residential area Prahaladnagar, Satellite, Ambawadi Key commercial location SG Highway, CG Road Key development locations Sanand, Virangaum Source: Company Research
▲ According to Forbes magazine of the World’s Fastest Growing Cities, Ahmedabad was named as one of the three Indian cities best positioned to grow and emerge as a global powerhouse. ▲ In Dec, 2011, a leading research firm IMRB rated Ahmedabad as the best of India’s megacities. ▲ It is a house to many educational institutes such as Indian Institute of Management (IIM), Center for Environmental Planning and Technology (CEPT), NIFT etc.
Economy/Industries: ▲ It is an industrial hub for textiles and is also known as “Manchester of India “. ▲ The city is home to many industrial sectors such as chemicals, textiles, drugs and pharmaceuticals, agro and food processing industries. Several business conglomerates such as Adani Group, Reliance Industries, Nirma Group of Industries, Cadilla Pharmaceuticals, Arvind Mills, etc. are present in Ahmedabad
Key economic drivers: ▲ After liberalization, the state of Gujarat, there has been a tremendous rise in manufacturing, industrial technology, construction, and commercial sectors. ▲ An increase in investments in textiles, chemicals, agro and food processing etc, has made Ahmedabad a growing industrial center in the country. ▲ The city has seen some major growth through development of SEZs, hotels, townships, and GIFT etc.
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Figure 37: Major Developments Towards mega city Ahmedabad-Gandhinagar-Sanand together planned as mega city Emerging as Auto Hub Sanand is emerging as the next auto hub of India with Tata Motors, Ford and Bombardier operating plants or making investments. PSA Peugeot Citroen, Maruti Suzuki have announced plans to set up plants; Baja j Auto and Hindustan Aeronautics are exploring the option of setting up plants; Upgrading spread in higher Apart from the existence world-class educational institutions like IIM (A), NID, education NIFT etc in Ahmedabad, the Indian Institute of Technology, Gandhinagar (IIT- GN) at Palej will be constructed at the budget of Rs 1,200 crore. BRTS – The Bus Rapid Transit BRTS system is being implemented and until date is been most successful such System is a high – speed system. corridor dedicated for CNG buses. DMIC - The proposed DMIC nodes like Sanand, Dholera etc are expected to fuel industrial growth of Dedicated Freight Corridor Ahmedabad. (DFC) Sabarmati Riverfront Development of 11.5 km stretch on banks of the river Sabarmati will house development many parks, commercial complexes, and walkways.
Gujarat International Finance Spread across 500 acres of land, GIFT will be a global IT hub for financial Tech City (GIFT) – GIFT services and a financial center for select product markets.
Special Economic Zones (SEZs) Work on 20 hectares Santal IT SEZs, 54 hector Chaodi IT/ITeS SEZ, Haripur Pharma SEZ. Special Investment Regions Sanand-Virangum SIR and Dholera SIR Augmentation of Major road Apart from development of Ahmedabad-Vadodara Expressway; work is being carried out on Bagdogra-Bhavnagar highway; Bagdodara-Surendra Nagar- Radhapur World’s largest Cancer Care Gujarat Cancer Society has kick started the fundraising for the development of Centre World's largest Cancer Care Centre Source: Company Research
Figure 38: Leading companies of India have a base in Ahmedabad
Source: Government of Gujarat
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Figure 39: Ahmedabad-Gandhinagar (Not to scale)
IIT, Palaj
Adani Township
New Heaven: GIFT Tata-Arvind
Godrej Expressway township to GIFT
New retail and Commecial hub
Towards Sanand: Sabarmati Virangaum riverfront SIR project
Sanand: Tata Nano/Ford Ahmedabad- Surat- Mumbai Towards: Expressway Chandgodar SIR (20Km)
Towards: Dholera SIR Pharma- SEZ
Source: Google/Company Research
Real Estate Scenario:
Residential ▲ National real estate players are entering Ahmedabad now. Godrej Properties, Adani Real Estate and now recently Tata-Arvind Real Estate joint venture announced a major township project in Ahmedabad. ▲ Like other markets, the slowdown in real estate market has impacted demand for real estate in the city and retarded progress of some large-scale township projects. However, there is also a significant absorption in premium residential projects. ▲ A few luxury projects are also comiing up in the city.
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Commercial ▲ Apart from CG road, SG highway is now a new retail and commercial hub of the city. ▲ Commercial demand is mainly from corporate houses and banking/finance/insurance sectors. ▲ IT/ITeS in the city is at a nascent stage and is expected to increase rapidly with the expansion of IT companies moving out to key IT locations due to increased employee and infrastructure cost. Prospects ▲ Increasing footprint of global companies in Gujarat is expected to fuel “Quality” of real estate in the city. ▲ Expansion of Ahmedabad Municipal Corporation limits, increasing connectivity, and infrastructure development are expected to further lead growth of real estate. ▲ A wide product mix is available in Ahmedabad such as residential apartments, plotted schemes, bungalows, farm houses, and commercial as well as retail spaces. Residential real estate in Ahmedabad ▲ The west zone, mainly comprising places such as Dadra, Haveli and the western zone comprising places like Bodakdev, Thaltej, Prahaladnagar, Shilaj etc have seen better appreciation over the past few years compared to other locations at Ahmedabad ▲ Locations such as Bopal, Gota, Chandkeda etc are prominent upcoming residential locations.
Figure 40: Central and western Ahmedabad are preferred residential locations
Central Zone East Zone West Zone North Zone City Index 300 250 200 150 100 50 0 2007 2010 2010 2010 2010 2011 2011 2011 2011 Apr-Jun Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jan-Mar Oct-Dec Jul-Sept Source: National Housing Bank (NHB)
Figure 41: Key locations in various zones Zones Central Zone East Zone West Zone North Zone South Zone
Bhadra, Dudheswar, Gomtipur Gam; Old Bodakdev; Ambli Buddh Nagar; Abad Dairy; Bhaduat Gaikwad Haveli, Viratnagar; Vastral; Bopal; Jodhpur; Saijpur-Bogha; Nagar; Gordhan Girdhar Nagar, Zulta Minara Solagam; Thaltej Sardar Nagar; Vadi; Ramvadi; Wadigam Shilaj Road; Vishnu Nagar Vatva Gam; Vishal Vastrapur; Vejalpur; Nagar Sola Road; Ambawadi; Chandkheda Gam Source: NHB
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Surat
Figure 42: City Synopsis Location Southern part of Gujarat. Importance Diamond capital of India; Population (2011) 4. 8million City ranking in India (Population) 8th (the second largest city in Gujarat) Decadal population growth 63% Adajan, Vesu – Canal Road, Ghod Dod Key residential areas Road etc. Ring Road, Parle point area, Textile Key commercial location market area Key development locations Hazira, Sachin, Oplad Source: Company Research/ Census of India,2011
▲ According to The City Mayors Foundation, Surat ranks fourth in a global study of fastest-developing cities in the world.
Economy/Industries: ▲ It is one of the fastest-growing cities in India in terms of economic prosperity and has registered one of the highest GDP growth rates of 11.5% over 2006–2007. ▲ Surat is home to many textile and diamond industries. It is also known as the diamond capital of the world. It contributed to 42% of world’s total rough diamond cutting and polishing; 10 out of 12 varieties of diamonds in the world are processed in India, contributing to $ 10 billion, which from approximately 65% of the total diamond exports from India. ▲ Surat is emerging as a potential hub for IT/ITeS, Chemicals and Petrochemicals, and Ports sectors. ▲ A large petrochemical complex, a gems and jewelry park and centrally-promoted Surat SEZ are expected to boost industrial and economic growth of the city. ▲ The city has attracted a sizeable amount of Foreign Direct Investment (FDI) in various sectors like energy and oil and gas. ▲ An investment of INR 3000 Crore has been made in the Hazira LNG terminal project. The port facilities would attract sizeable investments.
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Figure 43: Industrial Development in Surat
Source: Government of Gujarat
Key Economy Drivers: ▲ Existing industries such as textiles, embroidery and diamonds, along with booming real estate and upcoming port-based industries will continue to be key drivers of Surat's economy.
Figure 44: Major Development Expansion of Hazira Port A container terminal is proposed at Hazira, which will facilitate imports and exports. BRTS Work on two routes to be developed under Phase 1 on Su rat Navsari and Dumas resort- canal road and Sarthana Jakaatnaka has started Upgradation of Airport Construction of a new terminal building equipped with modern facilities has been completed in a record one year. Further, construction of a second runway and expanding the current runway to 2500 m have been proposed. SEZ 1.50 hectare, SUR SEZ at Sachin catering to diamond, jewelry and textile industries 2.56 hectare Surat Apparel Park at Vanj 3.74 hectares gems and jewelry SEZ at Ichapor SIR 195 Sq. KM SIR is proposed at Hazira, 28 kms from Surat. Focus industries would be chemical and petrochemical industries, port and port-based industries , and heavy engineering industries Proposed Outer ring road a 66 KM ring road proposed by 2014 to provide easy acc ess to future twin cities of Navsari and Surat DMIC Node DMIC node at Surat-Navsari envisage investment of more than $6 billion and more than 84000 new employment Source: Company Research
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Figure 45: Surat Map (Not to scale)
Towards Olpad PCPIR Upcoming residential Towards locations Aliyabet
Choryasi Existing textile market Suvali
Upcoming Retail and residential destination
Surat Apparel Park Hazira SIR
SUR SEZ
Towards Mumbai
Source: Google/Company research
Real Estate Scenario:
Residential ▲ Real estate is a new emerging business in Surat. The housing sectors is one of the most preferred segments in Surat. ▲ Surat is expanding in all directions and leading property developers are coming up with all kinds of affordable and luxury housing. ▲ Large-scale NRI interest is also seen in Surat.
Commercial ▲ Commercial demand mainly comprises textile office space, corporate offices, banks, and the financial sector etc. ▲ The retail property sector is growing too with more and more multiplexes, malls and retail shops coming up.
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Real Estate in Surat ▲ The central and western zone of Surat is witnessing major demand for real estate: Adajan (Rs. 3,000 – 3,500/sqft). Vesu – Canal Road ( Rs. 3200 – 4200/sqft), Ghod Dod Road – Rs. 4000 – 5000/sq. ft etc. ▲ In commercial space location near Ring Road – (Rs 7500/Sq feet) textile market area (4000 – 6000/ Sq ft), Parle Point–Rs.4000– 6000/Sqft VN University Road – new Rs. 3500 – Rs. 5000 have significant demand
Figure 46: Central and western Surat witnessing major residential real estate demand
West Central North South City Index East 250
200
150
100
50
0 2007 Jan- Apr-Jun Jul-Sep Oct- Jan- Apr-Jun Jul- Oct- Mar 2010 2010 Dec Mar 2011 Sept Dec 2010 2010 2011 2011 2011
Source: NHB
Figure 47: Key locations at various zones West Central North East South Rander; Nanpura; Katargam; Ved / Varachha; Udhana; Adajan; Rustampura; Dabholi; Amroli; Nana Bhestan; Jahangipura; Sonifaliya; Chaprabhatha Varachha; Pandesara; Palanpur Muglisara Umarwada; Bamroli Puna; Simada
Source: NHB
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Vadodara
City Synopsis
Figure 48: City Synopsis Location South East of Gujarat Cultural city of India and upcoming IT Importance destination Population (2011) 1.8 Million City ranking in India (the third largest city in Gujarat) (Population) Decadal population growth 22% (2001-11) Key residential area Akota, Alkapuri,Gotri,Vasna Road Key commercial location Alkapuri, Old Padra road, Makarpura Source: Company Research/Census of India
▲ Vadodara is equidistant to cities like Ahmedabad and Surat along NH-8. Further, the industrial hub like Halol-Salvi and Bharuch are close to Vadodara and hence the city is growing rapidly. ▲ Due to the presence of numerous educational institutions in the city, an abundance of skilled and intellectual manpower is available for various industries and for R&D activities.
Economy/Industries: ▲ The industrial growth of Vadodara runs through the golden corridor and is also known as “Gateway to the Golden Corridor”, as all the rail and roadways that link, Delhi, Ahmedabad and Mumbai also pass through Vadodara, including the Delhi Mumbai Industrial Corridor (DMIC). ▲ Many large chemicals and petrochemicals, pharmaceuticals, biotechnology, glass, engineering, and tobacco industries have a presence in Vadodara. ▲ Large state Public Sector Undertakings (PSUs) such as Gujarat Alkalis and Chemicals Limited (GACL) and Gujarat Fertilizers and Chemicals Ltd. (GSFC) and many privately-owned manufacturing plants are located in Vadodara. ▲ There has been significant investment in the chemicals and pharmaceutical Sectors. ▲ Vadodara has tremendous scope for growth in processing industries, mainly becuase it is an exclusive producer of dolomite and fluorspar
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Figure 49: Industries in Vadodara
Source: Government of Gujarat
Key Economy Drivers: ▲ Proximity to two of the biggest commercial cities of Gujarat - Surat and Ahmedabad and industrial hubs like Bharuch and Halol- Salvi ▲ IT/ITeS base increasing in Vadodara ▲ Comparatively high literacy rates and increasing industrial and IT investments
Figure 50: Major Development: Upcoming Indian Institute of Highly advanced IIIT at cost of 130 cr CHANGE TO INR MN/BN to boost IT in Information Technology (IIIT) State DMIC Node DMIC node at Vadodara-Bharuch envisages investment of more than $2.5 billion and would create more than 84000 new employment Auto hub General Motors present at Halol Augmentation of present National Between Ahmedabad and Vadodara to a 10-lane expressway in next three Highway 8 (NH8) years. Expressway Ahmedabad–Vadodara-Surat-Mumbai expressway is under construction. BRTS To augment existing infrastructure International Companies Apart from Indian companies, Chinese companies are also starting industrial base in Vadodara: for e.g. Chinese company TBEA will be setting up a Rs 2500 CHANGE TO INR MN/BN crore green-energy project in Karjan town of Vadodara district. SEZ Biotechnology SEZ (14.7 hectors) at Salvi Engineering SEZ by Suzlon (101 hectors) at Waghodia IT/ITeS SEZ by Nai Pian Infra (220 hectors) at Waghodia Ring Road Development underway Aircraft Maintenance hub This hub would to cater Western India Augmentation of major road Vadodara-Rajpipla highway Rajpipla-Ankleshwar-Dahej Source: Company Research
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Figure 51: Vadodara Map (Not to scale)
Towards Towards Ahmedabad Halal-Salvi SIR
Alkapuri
L&T Infotech
Padra Road
Towards Bharuch
Source: Google/Company Research
Real Estate Scenario: ▲ Currently, growth in Vadodara has become stagnant. However, given rapid industialisation in the surrounding areas, it could be a good segment for low-to-mid-market residential segment and warehousing etc. ▲ The city’s real estate is also worth tracking due to increasing IT/ITeS footprint.
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Mumbai
Figure 52: City Synopsis Location West coast of India the capital of Maharashtra and the Importance financial capital of India Population (2011) 18.4Million Mumbai is one of the most populous City ranking in India (Population) urban regions of the world. Decadal population growth 12% (2001-2011) Colaba, Prabhadevi, Bandra, Andheri, Key residential area western suburbs, Navi Mumbai, Thane Nariman Point, Worli, Lower Parel, Key commercial locations Bandra Kurla complex, Andheri (East) Source: Company Research/ Census of India
Economy/Industries: ▲ Mumbai is the financial and commercial capital of India, and the headquarters of many of India’s premier financial institutions such as RBI, BSE, NSE, and major public sector banks are located in the city ▲ It contributes 10% of all factory employment, 40% of total income tax collection, 60% of all customs duty collection, 20% of all central excise tax collection, and 40% of India’s foreign trade; it contributes the highest corporate taxes. ▲ It is also home to many foreign banks and financial institutions. ▲ In 2008, the Globalization and World Cities Study Group (GaWC) ranked Mumbai as an “Alpha World City”. ▲ It is one of the major IT/ITES destinations in India. ▲ New business complexes are coming up in Andheri and other districts in the northern part of the city. These units mostly house IT and knowledge-based industries.
Key economy drivers: ▲ Continued importance as a commercial capital of India. ▲ Finance, IT and outsourcing industries, trade and media-related industries.
Infrastructure Projects: ▲ The country’s largest and most diverse infrastructure for the IT industry is emerging along the “Knowledge Corridor” between Mumbai, Navi Mumbai, and Pune. ▲ Announcement of an international bid for Dharavi Slum Rehabilitation Scheme, Metro, Bandra – Worli Sea Link, Nava Sewa Harbour Link, have given great boost to current and future infrastructure. ▲ JNPT – Jawaharlal Nehru Port is the largest port in India, handling close to 50% of the country’s post traffic. Due to the port there has been a significant increase in exports and imports.
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Real Estate Scenario: ▲ High demographics and increase in employment and income have led to significant rise in real estate. ▲ With more than a third of Mumbai is covered with densely populated slums and more than 16000 dilapidated buidlings. Hence, there is significant scope of slum rehabilitation and re- development projects in Mumbai. ▲ With more clarity on the Development Control Regulations (DCR), the real estate sector has come out of standstill and is now providing a better level-playing field to all real estate players. ▲ Release of textile mill land for development, increase in FSI from 2 to 4 in SCBD Bandra Kurla Complex, and possible release of salt pans for development might provide great opportunities for growth in real estate development. ▲ Short-term real estate scenario in Mumbai looks sluggish and property prices may fall. However, the long-term real estate scenario in Mumbai looks promising, underpinned by increase in disposable income and employment
Residential Real Estate in Mumbai ▲ Due to limited land supply in Mumbai, residential real estate has grown in all zones. ▲ A correction of 10-15% is expected in select micro markets due to reduced affordability following the unprecedented increase in real estate prices and high interest rates.
Figure 53: Areas such as Lower parel etc., heading for correction while others are stagnant
Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 350
300
250
200 150
100
50
0 2007 2010 2010 2010 2010 2011 2011 2011 2011 Apr-Jun Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jan-Mar Oct-Dec Jul-Sept Source :NHB
Figure 54: Various locations in key zone of Mumbai Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Cuffe Parade, Lower Parel, Bandra West, Kurla East, Malad, Bhandup, Malabar Hill Matunga East, Andheri Tungwa/Chadivali, Borivali/Kandivali, Mulund Mahim West East,Oshivara Chembur Dahisar,Goregaon Source: NHB
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NCR
Figure 55: City Synopsis Location North India Importance New Delhi is capital of India Population (2011) 16.3Million One of the most populous urban City ranking in India (Population) regions of the world. Decadal population growth 27% (2001-2011) Colaba, Prabhadevi, Bandra, Andheri, Key residential area Western Suburbs, Navi Mumbai, Thane Nariman Point, Worli, Lower Parel, Key commercial location Bandra Kurla complex, Andheri (East) Source: Company Research/ Census of India
▲ National Capital Region (NCR) is a name of a metropolitan area that encompasses the entire National Capital Territory of Delhi as well as urban areas in state of Haryana, Uttrakhand, Uttar Pradesh, and Rajasthan. ▲ It is the world’s second largest urban agglomeration with population of 22 million and is the largest by area. The population of Delhi, as per the 2011 census, is estimated at 16.3 million.
Economy/Industries: ▲ Delhi is the political capital of India and is one of the most powerful cities in the world. ▲ It is an important commercial center in South Asia with per capita income of 2.5 times the national average. ▲ Key services industries include information technology, telecommunications, hotels, banking, media and tourism. ▲ It is one of the most favored destinations for FDI.
Key Economy Drivers: ▲ There has been a tremendous migration of people to Delhi and other National Capital Regions. ▲ It comprises many colleges and institutions. It is home to many research institutes including AIIMS, IIT, IIFT etc. ▲ Being a political capital and a historical city, Delhi is a strong tourist attraction.
Infrastructure Projects: ▲ There is lot of major re-development activity taking place in Delhi, including the International airport. ▲ Metro Rail has been constructed and major work is being done in the mass rapid transit system. ▲ Slum rehabilitation activity is active in Delhi. Slum rehabilitation schemes has been proposed for 3 million dwellers.
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Real estate scenario: ▲ NCR is one of most favored real estate desitinations in India and Gurgaon, Noida, Greater Noida have witnessed huge investments in the previous decade. ▲ The planned development of NCR has given a strong boost to development of real estate.
Figure 56: Figure: Zone G witnessed the highest appreciation in the past few years among all Zone A Zone B Zone C Zone D Zone E Zone F Zone G City Index 250
200
150
100
50
0 2007 Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Index Mar Jun Sep Dec Mar Jun Sept Dec 2010 2010 2010 2010 2011 2011 2011 2011 Index Index Index Index Index Index Index Index
Source: NHB
Figure 57: Key locations at various zone in Delhi Zone A Zone B Zone C Zone D Zone E Zone F Zone G Vasant Vihar & South Ext & Vasant Kunj, Mayur Yamuna Vihar, Govind Puri, Dakshinpuri, Friends Colony Sagdarjung Punjabi Bagh & Vihar,Dwarka & Inderpuri & Raghubir Nagar, Sangam Vihar, Enclave Shalimar Pitampura Rohini Karampura, Mangol Puri, Extension Nirankari Ghazipur Dairy, Colony, Pandav Sriniwas Puri, Nagar Source: NHB
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Other Cities Snapshot a. Hyderabad
Figure 58: City Synopsis Location South India Importance Capital city of Andhra Pradesh Population (2011) 7.74 million One of the most populous urban City ranking in India (Population) regions of India. Decadal population growth 35% (2001-2011) Key residential area Jubilee hills, Banjara hills, Kukatpally Key commercial locations Gachi Bowli, Kukatpally, Jubilee hills Source: Company Research/ Census of India
Figure 59: Real Estate Price trend West Zone South Zone North Zone Central Zone Other Zone East Zone City Index 250
200
150
100
50
0 2007 Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Mar Jun Sep Dec Mar Jun Sept Dec 2010 2010 2010 2010 2011 2011 2011 2011
Source: NHB
Figure 60: Key locations at various zone in Hyderabad North Central Other West Zone South Zone Zone Zone Zone Serilingampally, Kanchanbagh, Qutubullap Kachiguda, Shamshab Patancheruvu / Begumbazaar, ur, Alwal, Himayathn ad Ramachandrapu Rajendra Nagar Malkajgiri, agar, ram, Kukatpally Begumpet, Tolichowki, Marredpally Panjagutta, , Tarnaka Ameerpet, Jubilee Hills Source: NHB
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b. Bangalore
Figure 61: City Synopsis Location South India Importance Capital city of Karnataka Population (2011) 8.49 Million One of the most populous urban City ranking in India (Population) regions of India. Decadal population growth 49% (2001-2011) Kormanagala, JP Nagar, Whitefield, Key residential area Indra nagar Key commercial location Whitefield, Hosur Road, Devanahalli Source: Company Research/ Census of India
Figure 62: Real Estate Price trend Zone C Zone D Zone E Zone F City Index 200 180 160 140 120 100 80 60 40 20 0 2007 Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Mar Jun Sep Dec Mar Jun Sept Dec 2010 2010 2010 2010 2011 2011 2011 2011
Source: NHB
Figure 63: Key locations at various zones of Bangalore Zone C Zone D Zone E Zone F Lavella Road Richmond Jaya Nagar,Rajaji Banaswadi , etc Town, Indira Nagar, Koromagala,Air Yeswanthapura, Nagar, HAL II Port Road, Mathikhere, BTM & III stage, Malleshwaram, J P Layout, BCC Layout Domlur Layout, Nagar, R.T Nagar, Sadashiv Nagar, Benson Town Source: NHB
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c. Pune
Figure 64: City Synopsis Location Western India Importance Major IT hub of India Population (2011) 5.04 Million One of the most populous urban City ranking in India (Population) regions of India. Decadal population growth 34% (2001-2011) Key residential area Aundh, Baner, Kalyaninagar, Kharadi Key commercial location Hinjewadi, Hadapsar, Baner, Wakad Source: Company Research/ Census of India
Figure 65: Real Estate Price trend Central East South West Others City Index 300
250
200
150
100
50
0 2007 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul- Oct-Dec 2010 2010 2010 2010 2011 2011 Sept 2011 2011
Source: NHB
Figure 66: Key locations at various zone of Pune Central East South West Others Kasba Kharachi Parvati; Erandawana; Hinjewadi; Peth; Nana Bibvewadi; Aundh; Pashar; Thergaon; Peth; Dhankawadi; Kothrud; Bopadi; Chinchwad; Shivaji Katraj; Vadgoaon Baner; Nagar Hadapsar; Bhudruk Yerwada; Ghorpodi ; Wakad; Pimple Kondwa Khudra; Saudagar; Wanawrie; Chakan Undari; Kondwa Source: NHB
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Disclaimer:
This document is provided for assistance only and is not intended to be and must not alone be taken as the basis fo r an investment decision. Nothing in this document should be construed as investment or financial advice, and nothing in this document should be construed as an advice to buy or sell or solicitation to buy or sell the securities of companies referred to in this document. The intent of this document is not in recommendary nature.
Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of the information referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors.
Amplus Capital Advisors Private Limited ha s not independently verified all the information given in this document. Accordingly, no representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information an d opinions contained in this document.
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Amplus Capital Advisors Pvt Limited 24, Government Servant Society, Near Municipal Market, off C.G Road, Ahmedabad-380009 Tel: 079 - 30137000
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