1. THESIS 2009-2010 PROPERTY TREND IN REAL ESTATE DEVELOPMENT
IN AHMEDABAD GUIDED BY: Prof.Reshma Shah Head of Programme, SBST,
CEPT University EFFORTS BY: Parth Patel (UC2005)
2. Contents of Presentation Introduction Need for the study
Objective of the study Research methodology Data collection T.P.
Scheme observations Analysis Comparison of market prices
Conclusion
3. Introduction Ahmedabad, Indias seventh largest city is
experiencing a tremendous growth in its real estate sector. The
demand for property has been witnessing a steep rise and this has
resulted in the escalation of the number of property investments.
The prices of the property has grown in last few years.
4. NEED FOR THE STUDY The real estate sector in
Ahmedabadinfluenced with growing economy. Rise in business
opportunities and migration to urban areas has increased the demand
space for commercial and housing space. In any developing city the
direction of growth can not be correctly forecasted & would
depend on number of factors such as social & economic
parameters, so there is a need to study the trend of
development.
5. OBJECTIVE of the study To study and analyse recent Property
trends in real estate development in Ahmedabad and reasons
contributing to such trends. scope of the study The study is
restricted to 5 T.P. Scheme of Ahmedabad. The property trend in
real estate development would be studied in urban development
authority and municipal corporation areas of Ahmedabad. Gota(T.P.
Scheme No 33) Thaltej(T.P. Scheme No 39) Chandkheda(T.P. Scheme No
44) Motera(T.P. Scheme No 46) Nikol(T.P. Scheme No 101)
6. RESEARCH METHODOLOGY Data collection: Primary Data
Collection includes: Identification and selection of T.P. Schemes
Field survey T.P. Scheme data(Drawings, areas, etc.) Through
AUDA(Ahmedabad Urban Development authority) and Town Planning
office Observation for each T.P. Schemes Self study during survey
Prevailing property Market Prices By Survey Questionnaire through
Several Developers, Real Estate Agents
7. Secondary Data collection includes: Collection of Prevailing
Property Market Prices By Property Times, Knightfrank Real Estate
Survey for Ahmedabad, Real estate websites. Research reports
prepared by various government agencies, company and project
brochures, journals, newspapers etc. Research mediums: Case studies
Perception study
8. Data analysis: The trend observed are enumerated and
analysed to understand the opportunities presented by the market
and an attempt is made to formulate an outlook based on the
trajectory of the development process. It is believed that
observations from this citys case studies can be generalized in
order to come out with a overall picture of Property trends in real
estate development. Comparison of Market Prices of all T.P.
Scheme
9. Data Collection
10. Criteria for selection OF T.P. SCHEME Area which developed
after the T.P. Scheme is declared. Area which has grown hugely in
the past few years in all manners in terms of infrastructure,
services, etc. Almost Every type of development has taken place.
Area on their fastest growing development stage.
11. introduction of the t.p. schemes
12. AREA DISTRIBUTION OF T.P. SCHEME
13. FIELD SURVEY OF ALL T.P. SCHEME
14. T.P. Scheme Observations
15. T.P. Scheme No. 39 (Thaltej) This area has seen a very huge
development growth over these 5 years in housing and commercial
sector. Directly connected to NH-8C and S.P. Ring road. All basic
infrastructures are available. One of the Well developed T.P.
scheme of AUDA. Nature of buyers and sellers was such that the
dealing was easy in case of both, land and developed property. So
many reputed builders started developing the area so it was the
plus point for the area.
16. T.P. Scheme no. 33 (Gota) Very near from NH-8C. And now it
is connected by railway fly over. Very next to the thickly
populated area Ghatlodiya. Low land rates and demand was more than
the supply. Selling of property was good even at the time of market
crash. The only area which is cheap and near the developed area. R1
zone is the governing factor of fast development. The profit
margins are higher than the other areas.
17. T.P. Scheme no. 44 (Chandkheda) Directly approached from
the S.P. ring road and Gandhinagar highway. Low land rates though
it was adjacent to well developed T.P. Scheme no. 22 of chandkheda.
Developers and investors saw higher returns than other area because
of low land rates and appropriate location. Due to height
restriction Residential development is increasing in the area
18. T.P. Scheme no. 46 (Motera) The area was well developed due
to the Motera Cricket Stadium and was very famous. The area has
seen tremendous growth since last few years and is considered the
costliest area for living. Is approachable from Chandkheda state
highway and Gandhinagar highway. Luxurious projects are the main
factor for price rise. Its highway side commercial land is very
appropriate for commercial projects.
19. T.P. Scheme no. 101 (Nikol) Connected to the S.P. ring road
and Narol highway. Benefits of BRTS Project. Near to the Baroda
Express Highway. A low land rate is available even today and the
demand is also good enough. And one of the developing area in east
ahmedabad so the buyers are attracted more.
20. ANALYSIS
21. METHOD OF Analysis Quantative Analysis : From Primary &
Secondary data collection: Market Prices of Property from 2004-2010
for all T.P. Scheme present in scope of work Comparison Between
T.P. Schemes for Land Prices Comparison Between T.P. Schemes for
Residential Property Prices Comparison Between T.P. Schemes for
Commercial (Office) Property Prices Comparison Between T.P. Schemes
for Commercial (shop) Property Prices
22. METHOD OF ANALYSIS To define the growth due to development,
each year Inflation Rate has been subtracted from the concerned
years growth. i.e. if the growth is 20% for a comparison between
2009 & 2010 and the Inflation Rate for 2009 is 8%. Than the
growth due to development will be 12%.
23. comparison of MArketRAtes of all t.p. schemes from 2004
2010
24. Thaltej (T.P. Scheme no. 39)
25. Inferences drawn: It is R2 zone. Only consists of bungalow
and luxurious apartment projects. Class of Residents within the
T.P. Scheme is HIG. No commercial or mix used buildings exist.
Ideal place for residential projects. It is having all basic social
infrastructure such as garden, places of worships, etc. In the
future, restriction of the height of the building will also make
the area more posh and Property Price will rise due to it.
Appropriate wide roads such as 30m, 24m, 18m and 12m.
26. The bungalow built up prices range from 6000 to 20000
Rs./Sq.m. from 2004 to 2010. The final plots are comparatively
larger in size. Approachable from S.G. Highway Thaltej Cross Roads
& S.P. Ring Road. Market places, Mall, restaurants, schools,
etc. are near. According to the above factors this T.P. Scheme is
most preferable scheme for residential development. Even the
commercial building or office building is also preferable in the
plots facing 30.0m width road.
27. GOTA (T.P Scheme no. 33) GOTA ZONE 1
28. GOTA ZONE 2
29. Inferences drawn: The zone is R1. It major consists of
Tenaments, Bungalows, Low-rise & High rise Flats, Mix Use
buildings, commercial buildings. Class of Residents within the T.P.
Scheme is MIG. It is most suitable for Residential and mix use
development. It is having all social infrastructure such as
gardens, places of worships, etc. Close proximity to thickly
populated area Ghatlodia, lower rates of land and now direct
connection from the S.G. Highway attract mix development. The
governing factor for Mix use & Commercial Development is 30.0m
and 24.0m width roads.
30. The bungalow built up prices range from 5000 to 15000
Rs/sq.m. from 2004 to 2010. In the future, R1 zone will make the
area more affordable for customer and profitable for
developers.
31. CHANDKHEDA (t.p. scheme no. 44) chandkheda zone 1
32. chandkheda zone 2
33. Inferences drawn: The zone is R2. It only consists of
bungalow and low rise flat projects. Class of Residents within the
T.P. Scheme is HIG & MIG. This T.P. Scheme is facing S.P. Ring
road as well as GandhinagarHighwaywhich is the most governing
factor of price hike. Close proximity to Airport, Hospitals and
Several Recreational areas near Gandhinagar give it an edge over
other neighbourhood of Ahmedabad.
34. Direct approach from the S.P. Ring road made this T.P.
Scheme most possible fast developing area. The bungalow built up
prices range from 6000 to 18000 Rs/sq.m. from 2004 to 2010. Due to
grown and costly surrounding property of other T.P. Schemes, it
grows at very higher rate. According to the above factors this T.P.
Scheme is most preferable scheme for residential development.
Recently one of the biggest deal in Ahmedabad took place in this
T.P. Scheme worth Rs. 500 cr.
35. MOTERA (t.p. scheme no. 46) motera zone 1
36. motera zone 2
37. Inferences drawn: The zone is R2. It only consists of
bungalow and low rise flat projects. Only one commercial project is
launched this year. Class of Residents within the T.P. Scheme is
HIG. Other than good social infrastructure, it provides green cover
and clean environment to its residents. Open green space is a
distinct feature. This T.P. Scheme is a horizontal strip running
parallel to the Gandhinagar Highway (60.0 m width) which is the
governing factor of price hike.
38. Close proximity to Airport, Hospitals and Several
Recreational areas near Gandhinagar give it an edge over other
neighbourhood of Ahmedabad. The bungalow built up prices range from
6000 to 17000 Rs/sq.m. from 2004 to 2010. According to the above
factors this T.P. Scheme is most preferable scheme for residential
development. Even the commercial building or office building is
also preferable in the plots facing Gandhinagar Highway. Comparing
other surrounding T.P. Schemes it got cleared very fast so it grew
in a healthier manner.
39. NIKOL (t.p. scheme no. 101) Nikol zone 1
40. nikol zone 2
41. Inferences drawn: The zone is R1. It consists of bungalow
schemes, low rise and high rise apartments, mix use buildings.
Class of Residents within the T.P. Scheme is LIG and MIG. Close
proximity from Narol Highway and S.P. Ring Road is the main
governing factor for price hike. It has the most different salient
feature of BRTS connection which adds much more to its value. It is
one of the popular and developing areas in east Ahmedabad.
42. The bungalow built up prices range from 4000 to 16000
Rs/sq.m. from 2004 to 2010. Due to early final sanction of this
T.P. Scheme, the rates have gone relatively higher but though the
area is inreach of LIG. According to the above factors this T.P.
Scheme is most preferable scheme for mix use development. The
apartments scheme having shops on Ground & First floor and 1
BHK & 2BHK Flats on other 3 floors would be most
appropriate.
43. COMPARISON OF LAND RATE BETWEEN T.P. SCHEMES
44. inferences drawn: Land prices increased from 2004 to 2008
and than there was 1 year slow down due to global recession. The
market stabilized in mid 2009 and the prices started again
increasing. Land prices reached Rs. 28000 per Sq.m. in 2008 and
after slowing down for 1 year it reached a peak of Rs. 33,000 Per
Sq.m. in 2010 in Thaltej. Motera is the highest growing area which
grew by 820% and Thaltej is the least growing area which grew by
340%. The highest growth was seen from 2005 to 2006 during real
estate boom.
45. COMPARISON OF RESIDENTIAL PROPERTY PRICES OF T.P.
SCHEMES
46. inferences drawn: Residential prices reached Rs. 25000 per
Sq.m. in mid 2008 and after slowing down for 1 year it reached a
peak of Rs. 31,500 Per Sq.m. in 2010 in Thaltej. Though it is the
least growing area. Motera is the highest growing area which grew
by 366%. The highest growth was seen from 2006 to 2007 in all areas
during real estate boom. The Residential prices increased from 2004
to mid 2008 and than there was 1 year slow down due to global
recession and higher home loan rates. The market stabilized in mid
2009 and when the property prices and loan rates were lowered,
prices started increasing again.
47. COMPARISON OF COMMERCIAL(SHOP) PROPERTY PRICES OF T.P.
SCHEMES
48. inferences drawn: The commercial rates in ahmedabad started
picking up around mid 2008 and reached their peak in 2010. The over
supply of commercial space lead to decrease in prices after 2008.
After 2008 there are very less commercial spaces developed due to
less demand. Nikol has seen the highest growth in commercial
(office) property rates. Thaltej has reached a peak of Rs. 30000
per Sq.m. in 2010. But still it was the least growing area. The
highest growth was seen from 2007 to 2008 during real estate
boom.
49. COMPARISON OF COMMERCIAL(office) PROPERTY PRICE between
T.P. SCHEMES
50. inferences drawn: The commercial rates in ahmedabad started
picking up around mid 2008 and reached their peak in 2010. The over
supply of commercial space lead to decrease in prices after 2008.
After 2008 there are very less commercial spaces developed due to
less demand. Gota has seen the highest growth. Thaltej has reached
a peak of Rs. 65000 per Sq.m. in 2010. But still it was the least
growing area. The highest growth was seen from 2006 to 2007 during
real estate boom.
51. CONCLUSION Price of property started increasing from 2004
till mid 2008. Then there was a recession after mid 2008. The
reasons were global recession, high property price, high home loan
rates, oversupply, liquidity crisis, etc. The highest price
increase was seen between 2006 & 2008. The market stabilized in
mid 2009. The property price and loan rate were low than before so
it lead the property prices increase again.
52. After analyzing all the T.P. schemes I have observed that
the area which grew highest were R1 zone. Because more F.S.I. is
provided and high rise building is permitted. So the developers
earn more profit even if the land rates were high and though the
buyer can afford it. Opposite to that in other areas which was R2
zone did not have advantages of F.S.I. and building height. So the
developer could not earn more and though buyer found it costly.
Thats why it did not grow as much as other area. And still R1 zone
areas have the potential of growth in the property prices than R2
zone.
53. The factors which impacts the value of the properties are
Distance from the highway Social infrastructure Negative impact of
Railway track on the property Surrounding of the area The investor
should always invest in the R1 zone area for long term investment
to get the highest benefit. Similarly the Developer should also
develope projects in the R1 zone to get high percentage of
profits.
54. Thank You
55. LIMITATIONS OF THE STUDY The present study is limited to
five T.P. Schemes due to time constraints. The current trends in
the five T.P. Schemes are studied will be considered as trend of
whole Ahmedabad. The zones are demarked as per road width only and
the Jantri zones are not considered. POTENTIAL FOR UTILISATION IN
CONSTRUCTION INDUSTRY By analysing the property trends the forecast
for property rates and direction of development can be made. The
investor can judge whether to invest or not. Even the developers
can follow the trend and manage to provide what is really needed
(In Demand) to the customers.
56. inferences drawn: The commercial rates in ahmedabad started
picking up around mid 2008 and reached their peak in 2010. The over
supply of commercial space lead to decrease in prices after 2008.
After 2008 there are very less commercial spaces developed due to
less demand. Gota has seen the highest growth. Thaltej has reached
a peak of Rs. 65000 per Sq.m. in 2010. But still it was the least
growing area. The highest growth was seen from 2006 to 2007 during
real estate boom.