INVESTMENT DESTINATIONS - INDIA India’s top residential investment opportunities Investment Advisory Report November 2012 Presented by:- Gulam Zia
Executive Director, Advisory, Retail & Hospitality 2nd February 2013
1 20-YEARS PERFORMANCE OF VARIOUS ASSET CLASSES
Current value of Rs.1 crore invested in 1992
1.9 Cr
USD
4 Cr
Sensex
7 Cr
Gold
7.5 Cr
Silver
10 Cr
Real Estate * Prices exhibits South Mumbai property
2 3 APPROACH FOR IDENTIFICATION OF THE TOP RESIDENTIAL INVESTMENT DESTINATIONS
INDIA Urban centres
TOP 100 CITIES Top 100 cities based on population
TOP 5 CITIES Business activities: Banking penetration, hotel room demand, air passenger traffic Infrastructure development: Current and proposed infrastructure spending ZONE Employment: Occupied office space, industrial activity Social & physical infrastructure: Analysis of development plan and extensive field survey
DESTINATION Connectivity to important locations Proximity to office space Access to social infra Planned Development Land availability Lifestyle shift
4 MUMBAI
Ulwe • Proximity to IT/ITeS hubs of Navi Mumbai • Upcoming Trans Harbour Link & International airport • Upcoming Seawood-Uran suburban rail network • Prices to increase by 145% in the next five years from 4,000/sq.ft. to 9,800/sq.ft
Wadala • Proximity to premium office markets • Upcoming infrastructure projects like Monorail and Eastern Freeway • Prices to increase by 133% in the next five years from 15,000/sq.ft. to 35,000/sq.ft
Chembur • Proximity to premium office markets • Upcoming infrastructure projects like Monorail, Eastern Freeway and Santacruz Chembur link road • Prices to increase by 125% in the next five years from 12,000/sq.ft. to 27,000/sq.ft
5 MUMBAI
6 DELHI-NCR
Dwarka Expressway
• Growth of IT/ITeS, BFSI & Consulting sectors
• Enhanced connectivity between Delhi & Gurgaon
• Upcoming diplomatic enclave
• Prices to increase by 108% in the next five years from 4,900/sq.ft. to 10,200/sq.ft
Noida Extension
• Growth of IT/ITeS, BFSI & Consulting sectors
• Enhanced connectivity between Delhi & Noida
• Existing sound infrastructure & affordable pricing
• Prices to increase by 111% in the next five years from 3,200/sq.ft. to 6,760/sq.ft
7 DWARKA EXPRESSWAY
8 NOIDA EXTENSION
9 CHENNAI
Medavakkam and Pallikarnai
• Growth of the IT/ITeS & Auto sector
• Proximity to employment hubs on OMR and GST Road
• Occupied office space on OMR & GST Road to increase by 64% from 29 mn sq.ft. in 2012 to 47.9 mn sq.ft in 2017
• Upcoming Monorail corridor
• Prices in Medavakkam to increase by 103% in the next five years from 3,800/sq.ft. to 7,700/sq.ft
• Prices in Pallikarnai to increase by 93% in the next five years from 4,200/sq.ft. to 8,100/sq.ft
10 CHENNAI
11 PUNE
Hinjewadi, Tathawade, Ravet and Wakad
• Growth of the IT/ITeS sector
• Strategic location on the Mumbai-Pune Bypass Road
• Proximity to employment hubs of West Pune (Hinjewadi IT Park)
• Occupied office space in West Pune to increase by 81% from 22 mn sq.ft. in 2012 to 39.5 mn sq.ft in 2017
• Prices in Hinjewadi to increase by 100% in the next five years from 4,000/sq.ft. to 8,000/sq.ft
• Prices in Tathawade to increase by 98% in the next five years from 4,300/sq.ft. to 8,500/sq.ft
• Prices in Ravet to increase by 97% in the next five years from 3,950/sq.ft. to 7,800/sq.ft
• Prices in Wakad to increase by 91% in the next five years from 4,500/sq.ft. to 8,600/sq.ft
12 PUNE
13 BENGALURU
Hebbal
• Growth of the IT/ITeS & Bio-technology sector
• Benefits of IT investment Region in North Bengaluru
• Upcoming Monorail and widening of existing roads
• Occupied office space in North Bengaluru to increase by 80% from 7.5 mn sq.ft. in 2012 to 13.5 mn sq.ft in 2017
• Prices in Hebbal to increase by 94% in the next five years from 4,250/sq.ft. to 8,230/sq.ft
KR Puram
• Growth of the IT/ITeS & Bio-technology sector
• Lifestyle shift
• Upcoming metro connectivity
• Prices in KR Puram to increase by 91% in the next five years from 3,245/sq.ft to 6,200/sq.ft
14 HEBBAL
15 KR PURAM
16 INVESTMENT OPTIONS: BUDGET OF UP TO RS 25 LAKH
Investor Min. ticket Investor Destination City returns size contribution
Noida Extension Delhi - NCR 23% Rs15 L Rs 6 L
Ulwe Mumbai 29% Rs15 L Rs 6L
Meddvakam Chennai 21% Rs 21 L Rs 8L
Hinjewadi Pune 21% Rs 23 L Rs 9L
Pallikarni Chennai 19% Rs 24L Rs 10L
Tathawade Pune 20% Rs 25 L Rs 10L
* Investor Returns based on Loan to Value ratio of 60%, mortgage rate of 10.5% and loan tenure of 20 yrs.
17 INVESTMENT OPTIONS: BUDGET BETWEEN RS 25 TO 50 LAKH
Investor Min. ticket Investor Destination City returns size contribution
Wakad Pune 19% Rs 26 L Rs 10 L
Ravet Pune 20% Rs 28 L Rs 11L
K R Puram Bengaluru 19% Rs 31 L Rs 12L
Hebbal Bengaluru 19% Rs 36L Rs 14L
Dwarka Exp. Delhi-NCR 22% Rs 47L Rs 19L
* Investor Returns based on Loan to Value ratio of 60%, mortgage rate of 10.5% and loan tenure of 20 yrs.
18 INVESTMENT OPTIONS: BUDGET OF RS 50 LAKH AND ABOVE
Investor Min. ticket Investor Destination City returns size contribution
Chembur Mumbai 26% Rs 54L Rs 22L
Wadala Mumbai 27% Rs 183 L Rs 73L
* Investor Returns based on Loan to Value ratio of 60%, mortgage rate of 10.5% and loan tenure of 20 yrs.
19 TOP DESTINATIONS
2012 Average 2017 Forecasted Price Prices to double Rank Destination City Price (Rs./sq.ft.) Price (Rs./sq.ft.) Appreciation In (Years) 1 Ulwe Mumbai 4,000 9,800 145% 3.4 2 Wadala Mumbai 15,000 35,000 133% 3.8 3 Chembur Mumbai 12,000 27,000 125% 4.0 4 Noida Extension Delhi-NCR 3,200 6,760 111% 4.5 5 Dwarka Expressway Delhi-NCR 4,900 10,200 108% 4.6 6 Medavakkam Chennai 3,800 7,700 103% 4.9 7 Hinjewadi Pune 4,000 8,000 100% 5.0 8 Tathawade Pune 4,300 8,500 98% 5.1 9 Ravet Pune 3,950 7,800 97% 5.1 10 Hebbal Bengaluru 4,250 8,230 94% 5.3 11 Pallikarnai Chennai 4,200 8,100 93% 5.4 12 Wakad Pune 4,500 8,600 91% 5.5 13 KR Puram Bengaluru 3,245 6,200 91% 5.5
20 Thank You