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.