Investing in Indian Real Estate

Amplus Research Darshil Shah (darshil.shah@ampluscapital.com)

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 Real Estate .................................................................. 10 Gujarat verview ............................................................ !! "hmedabad#Gandhina$ar ................................................. 2% &urat ............................................................................. '( Vadodara ....................................................................... '4 )umbai.......................................................................... '* +,R .............................................................................. 'ther ,ities &napshot ...................................................... 4! a. .yderabad .................................................................. 4! b. /an$alore ................................................................... 42 c. 0une .......................................................................... 4'

B.

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

'

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. 1he investment made at the ri$ht location at ri$ht time would deliver e2traordinary returns. 3or e$. 4n the past four years years residential locations in cities such as "hmedabad and )umbai performed better than most cities includin$ cities li5e .yderabad.
Fi ure 1! Location is "ey #or superior returns
Hyderabad Mumbai 300 Index to 100 250 200 150 100 50 0 HY1 HY2 HY1 HY2 Q1 Q2 Q3 Q4 Q1 Q2 2011 Q3 Ahmedabad Bengaluru Chennai

2008
&ource6 +./

2009

2010

b. Vibrant locations to better returns in future

provide

" few locations in 4ndia have potential to outperform other locations7 considerin$ their6 i. .i$h economic base8 ii. .i$h $rowth rate8 iii. .i$h urbani9ation base8 iv. .i$h urbani9ation rate8 and v. ther factors li5e political stability7 infrastructure etc Delhi$ %aharastra$ are &u'arat o##er hu e real estate opportunity! !. "mon$ states havin$ economy of more than :!(( billion7 )aharastra and Gujarat have hi$her per capital income than other states. ;elhi has the hi$hest per capita income compared with other states7 thou$h its economy is around :<% billion only.

Key Locations in India

Fi ure (! &u'arat is amon country 250 224.12

200 150 100 50 0 128.09 123.56

the #e) *100 +illion economies in the

119.13

104.87

96.57

86.83 56.34

Gujarat

Maharashtra

Karnataka

Uttar Pradesh

Andhra Pradesh

&ource6 0lannin$ ,ommission of 4ndia

Fi ure 3! Amon +i er states$ Delhi$ %aharastra and &u'arat ha,e hi hest per capita income (INR) Per Capita NSDP FY 2009-10

Tamil Nadu

West Bengal

* at current prices

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Maharashtra TamilNadu Karnataka Andhra Pradesh All India Gujarat Delhi 74,027 63,961 63,547 52,097 51,025 46,492 116,886

&ource6 0lannin$ ,ommission of 4ndia

2. Gujarat7 )aharastra7 ;elhi7 witnessed the hi$hest avera$e real economic $rowth rate in the past ten years.
Fi ure -! Amon +i er states$ &u'arat )as the #astest state #or last 10 years
Average real growth rate from 02-03 to 10-11 12 10 8 6 4 2 0 All-India Gujarat Maharashtra Tamil Nadu Karnataka Delhi Andhra Pradesh 10.42 9.98 9.82 8.95 8.11 7.95 7.68

ro)in

&ource6 0lannin$ ,ommission of 4ndia

Delhi

<

Key Locations in India

&imilarly7 Gujarat and )aharastra have witnessed the hi$hest avera$e industrial $rowth rate amon$ bi$$er states.
Fi ure .! Amon
14 12 10 8 6 4 2 0 Gujarat Maharashtra Karnataka TamilNadu Delhi Andhra Pradesh All India

+i

er states$ &u'arat led in industrial

Growth rate of NSDP in Industry

ro)th

12.65 9.24 8.54 8.32 7.25 6.76 6.61

&ource6 0lannin$ ,ommission of 4ndia

'. ;elhi7 Gujarat and )aharastra are amon$ one of most urbanised states in the country.
Fi ure /! Amon lar er states$ &u'arat has hi her 0r+an population Urban population

120 100 80 60 40 20 0 Maharashtra Gujarat Tamil Nadu Karnataka Delhi Andhra Pradesh India 48.45 45.23 97.5 as % of total state population

42.58

38.57

33.49

31.16

&ource6 0lannin$ commission of 4ndia

Key Locations in India

"nd ;elhi7 Gujarat7 )aharastra have witnessed hi$h urbanisation $rowth rates amon$ the lar$e states.
Fi ure 1! Amon ur+anisation rate
40 35 30 25 20 15 10 5 0 Gujarat Karnataka Maharashtra India Andhra Pradesh Tamil Nadu Delhi

lar er

states$

&u'arat

)itnessed

hi her

% decadel growth rate of urban population 36.26 35.83 31.8 31.27 27.16 26.56 23.67

&ource6 0lannin$ ,ommission of 4ndia

"s per )c5insey report7 the trend of urbanisation is e2pected to continue and 4ndia will have at least !' cities with population more than four million.
Fi ure 2! Fastest ro)in states )ill continue to e3i+it the hi hest ur+anisation rates

&ource6 )c5insey

Key Locations in India

Real Estate o# prime cities o# %aharastra$ &u'arat and Delhi poised #or e3ceptional returns! &tates li5e )aharastra7 Gujarat7 ;elhi have not only recorded above# avera$e $rowth rate on a hi$her base but also have better per capita income7 a hi$her population base and hi$her urbani9ation rates than many states. 1he economic $rowth rate of these three states is e2pected to remain robust. 1hese three states are e2pected to be amon$ the most developed states in the country by 2(2( and will to$ether contribute si$nificantly to country>s G;0. 3urther7 due to healthy $overnment policies7 states such as Gujarat may outperform e2pected $rowth. "mon$ the lar$e cities7 apart from 41 cities such as /an$alore and .yderabad7 cities of Gujarat li5e &urat7 "hmedabad7 and Vadodara have witnessed one of the hi$hest population $rowth rates in the last decade.
Fi ure 4! Surat and Ahmeda+ad amon country
(% growth) 100 80 60 40 20 0 Hyderabad Surat Ahmedabad Bangalore Pune Chennai Mumbai Kolkata 46 S rat Delhi

the top

ro)in

cities o# the

Population Growth of Indian Cities Growth 01-11 Growth 91-11

&ource6 ,ensus of 4ndia72(!!

Fi ure 10! Ahmeda+ad5s population is closer to 6ydera+ad and Surat5s is closer to 7une and may o,erta"e them in the ne3t decade.
(Lacs) 200 160 120 87 80 40 0 Hyderabad Kolkata [Calcutta] Chennai [Madras] Ahmad b d Bangalore Mumbai Delhi Pune 85 77 64 50 184 163 141 Population of Indian Cities 2011

&ource6 ,ensus of 4ndia72(!!

Key Locations in India

Fi ure 11! 8he e3pected - million population cities o# India can +e thus cate orised as under! %ost Fa,ored 9ities #or In,estment )umbai ;elhi@+,R /an$alore .yderabad 0une ,hennai )umbai@+,R@ /an$alore are robust real estate mar5ets in the country $ettin$ ma2imum benefit from their lar$e economy7 the country>s hi$h $rowth7 urbani9ation7 hi$her population base. ' out of 4 cities located in the fastest $rowin$ state Gujarat and are e2pected to $et ma2imum benefit of the state>s hi$h $rowth. +a$pur7 ?anpur $rowin$ below national avera$e8 whereas ?ol5ata is sta$nant. &ro)th +ut 0ntapped cities #or in,estments "hmedabad &urat Vadodara Aaipur :ther 9ities ?ol5ata ?anpur +a$pur

;urin$ the past <#% years7 the si2 most favoured cities shared almost entire :!< billion investment made by real estate private eBuity players in 4ndia. " ne2t few CGrowth but Dntapped citiesE could also selectively provide superior returns.
&ource6 ,ompany research

Fi ure 1(! Amplus %odel 7ort#olio 8ypical Real Estate Fund 7ort#olio )umbai +ational ,apital Re$ion /an$alore .yderabad ,hennai 0une
&ource6 ,ompany Research

Amplus %odel 7ort#olio )umbai +ational ,apital Re$ion /an$alore "hmedabad &urat Vadodara@Raj5ot

Key 9onsideration #or replacin 6ydera+ad ; 9hennai ; 7une )ith Ahmeda+ad ; Surat ; <adodara ; Ra'"ot =><i+rant 9ities?@! Vibrant ,ities have6 a.
Ahmeda+ad Ra'"ot <adodara Surat 7une 6ydera+ad 9hennai

.i$h population base

b. .i$her Drbani9ation rate c. ?ey cities of Gujarat7 the state which is6 i. ne of the most developed in the state ii. .ave hi$h urbani9ation rate iii. .ave hi$her G;0 base iv. .ave hi$hest $rowth rates v. .ave hi$h per capita income d. 1he four cities are located on a stretch of '(( 5m and hence have lesser $eo$raphical spread than the other three cities e. Dntapped mar5et by real estate private eBuity players f. .i$h industrial base

$. .i$hest investor interest in settin$ up new industries h. )ajor infrastructure projects under e2ecution

Real Estate

B. Real Estate
Gujarat verview Ahmedabad!Gandhina"ar #urat Vadodara $umbai %&R ther &ities #napshot a. 'yderabad b. Ban"alore c. (une

!(

Real Estate

B. Real Estate
Gujarat verview
Gujarat is located in western 4ndia and has one#third of the country>s coastline. 1he state has a population more than %( million (2(!! census)7 comprisin$ around <F of country>s population. "ccordin$ to 0opulation ,ensus 2(!!7 the state witnessed a decadal (2((!#!!) $rowth rate of !-.2F vs. an all#4ndia avera$e of !*.%4F. "vera$e decadal population $rowth rate of Gujarat has been 2(F over the past three decades. Gujarat is one of most urbani9ed states in the country havin$ more than 42.<=F people residin$ in urban areas as per 2(!! census. 1he state has literacy level of *-.'!F vis#G#vis an all#4ndia avera$e of *4.(4F.
Fi ure 13! &u'arat has hi h ur+an population and hi h ur+anisation
Urban population Growth on urban population (RHS) % of total population (RHS) population in Mn 25 20 15 10 5 0 1951 1961 1971 1981 1991 2001 2011

30

45 40 35 30 25 20 15 10 5 0

&ource6 ,ensus of 4ndia72(!!

Gujarat is the land of entrepreneurs and it si$nificantly contributes to the country>s economic and financial $rowth. 4t accounts for about '(F of 4ndia>s stoc5 mar5et capitali9ation7 22F of e2ports and -.<F of the wor5force.
Fi ure 1-! &u'arat contri+ution to India
Population Geographical Area No. of Factories Net Value (Manufacturing) Value of Output Fixed Capital Investment Exports
&ource6 Government of Gujarat

5% 6% 10% 12% 16% 17% 22%

!!

Real Estate

1he state has the world>s lar$est $rassroots petroleum refinery at Aamna$ar7 the country>s only H+G terminals at .a9ira and ;ahej7 and it contributes si$nificantly to the country>s diamond processin$ (=(F)7 plastic industry (%<F)7 and pharmaceuticals (4<F) etc.
Fi ure 1.! &u'arat 9ontri+ution to India and )orld

&ource6 Gujarat 4ndustrial ;evelopment ,orporation

&u'arat Economy Gujarat is one of the lar$est and fastest#$rowin$ economies in the country. 1he state is $rowin$ at 2I2.<F hi$her than the allI4ndia avera$e. Gross &tate ;omestic 0roduct of Gujarat is more than :!(4.< billion7 lar$er than many countries such as /an$ladesh7 4raB7 and Vietnam. ver the ne2t %#* years7 the state economy will be lar$er than many other countries such as 0a5istan7 +ew Jealand and ?uwait.
Fi ure 1/! &u'arat &D7 at the constant prices Gujarat GSDP at constant prices (INR Crore) Gujarat Growth rate (RHS) 400,000

20 15 10 5 0 -5 -10

300,000 200,000 100,000 0 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 1999-2000 09-10

&ource6 Government of Gujarat

!2

Real Estate

Gujarat>s per capita income is 4+R %'7-%!7 which ran5s fourth hi$hest in the country. 1he national avera$e is Rs. 4%74-2 (D&: !('')
Fi ure 11! &u'arat per capita income is one o# hi hest in the country

&ource6 Government of Gujarat

Gujarat is one of the most industriali9ed states of 4ndia with 4<F share in G&0; and '!F share in manufacturin$ and its per capita G;0 is almost twice that of the national avera$e.
Fi ure 12! &u'arat is more industrialised state
Agriculture 7% 10% 4% 14% Forestry, fishing, mining & quarrying Manufacturing Electricity, gas, water & construction 31% 10% Trade, hotels, transport, storage & communication Banking & Insurance Public Adm.
&ource6 Government of Gujarat

24%

1he state has been reco$ni9ed for havin$ one of most proactive $overnance and the $overnment policies are bein$ made to sustain the $rowth momentum.
Fi ure 14! <isi+le roadmap to maintain the hi h ro)th rate in #uture Industrial A ricultural 0resent Ser,ices

1he hi$hest $rowth rate of more .i$hest $rowth rate of more than )ore than 42F share in the than !2F in the country over the -F in the country over the past economy and $rowin$. past ten years ten years. ("ll#4ndia avera$e of 2.%F) .i$h $rowth impetus throu$h me$a projects such as &4R7 &KJ7 ;)4,7 0,04R etc ,ompletion of &ardar &arovar project by 2(!< to raise $ross irri$ated area from '(F to 4%F of $ross cropped area. 4nitiative to boost 41@41e& and financial services throu$h &KJs and G431 city (a $lobally benchmar5ed 4nternational 3inancial ,entre (43,)

3uture

&ource6 ,ompany Research

!'

Real Estate

&u'arat! 7resent

ro)th #actors

Gujarat has balanced development by brin$in$ economic and social reforms in industries7 businesses7 a$riculture7 and livestoc5 etc. "part from havin$ the hi$hest industrial $rowth rate in the country7 the state also has the hi$hest a$ricultural $rowth rate in 4ndia with avera$e $rowth rate more than -F p.a. durin$ the past five years. Gujarat has an e2cellent infrastructure and is one of leadin$ industrial states in the country with world#class cities and educational institutions7 a stable political environment7 a hard wor5in$ and 5nowled$eable wor5force7 and $overnment policies that warmly and openly encoura$e overseas investments in a wide ran$e of opportunities. In#rastructure 4n a Auly 2(!! report7 1he Kconomist noted that GujaratLs infrastructure competes with Guan$don$ # the economic en$ine of ,hina Gujarat is the only state with !((F power supply. 4s its the only state with hi$hest number of ports. 4t has !%(( 5m coast line ,omprisin$ one#third of the country>s coastal boundary7 the hi$hest for any state. 4t is the only state in 4ndia to have a state#wide $as $rid of 272(( 5m. =*.-F of the total roads in the state are asphalt surfaced. Inclusi,e &ro)th "$ricultural $rowth has been -F sicne the past five years. Gujarat has -=.=%F villa$e connectivity with all#weather roads7 the hi$hest in 4ndia !((F of GujaratLs !=7((( villa$es have electricity connection for 24 hours power throu$h the Ayoti$ram Mojana. "ll villa$es are connected with broadband 4nternet AorldBclass cities 4n 2(!(7 3orbes list of worldLs fastest $rowin$ cities included "hmedabad at number three after ,hen$du and ,hon$Bin$ from ,hina. &urat is also one of the fastest $rowin$ cities in the world. Vadodara is also one of fastest#$rowin$ city in 4ndia. E##icient o,ernance

Gujarat was awarded the second best state in "sia 0acific cate$ory in N4mprovin$ transparency7 accountability and responsiveness in public service> in 2(!(. 4t was adjud$ed Cthe most mar5et#oriented and business friendly stateE (3orbes )a$a9ine) 4t ran5ed number two in the economic freedom of the &tates of 4ndia 2(!! report.

!4

Real Estate

1he state received four awards from Dnion Drban ;evelopment )inistry for implementation of A++DR) projects. Base o# top Industries Gujarat has the worldLs lar$est shipbrea5in$ yard near /havna$ar at "lan$. 4t has 4ndia>s only HiBuid ,hemical 0ort 1erminal at ;ahej7 developed by Gujarat ,hemical 0ort 1erminal ,o Htd. 4t has two of the three HiBuefied +atural Gas (H+G) terminals in the country (;ahej and .a9ira). =(F of 4ndia>s total diamond processin$ happens in Gijarat and the state accounts for *(F of jems and jewelry e2ports. 1he state accounts for '!F of 4ndia>s te2tile production. Research and de,elopment Gujarat is also 5nown for many national level institutions that include6 &pace "pplications ,entre (&",) 4ndian &pace Research r$ani9ation (4&R ). 4ndian 4nstitute of )ana$ement (44))7 "hmedabad7 0hysical Research Haboratory +ational 4nstitute of 3ashion 1echnolo$y ,K01 441 Gandhina$ar
Fi ure (0! In,estment climate in &u'arat

&ource6 Government of Gujarat

!<

Real Estate

&u'arat! Future
&everal cities of Gujarat are poised to benefit e2traordinarily from the several me$a projects underta5en by the Gujarat $overnment in the past few years. 1he projects would increase Gujarat>s share in industrial7 service7 and a$ricultural $rowth of country and will boost the overall national economy. 1he state achieved its $rowth by consistently movin$ to ne2t level of $rowth enablers. ver a period of time7 the state moved from cluster approach (=' clusters) to industrial estates (!=( estates)7 and then to &KJs (<< currently). 1he state is now creatin$ lar$e infrastructure li5e ;)4,7 ;3,7 ))H07 and &4R to ta5e the industrial $rowth of the state to the ne2t level.
Fi ure (1! Industrial De,elopment C A 7ro ressi,e Approach
Investment Regions Delhi %um+ai Industrial 9orridor =D%I9@ /0 SEDs %ulti 7roduct Le,el o# Inte ration 9hemical 8e3tile 7harma I8;I8ES Electronics (0( Industrial Estates En ineerin Biotech 23 7roduct 9lusters &ems E Fe)ellery Ahmeda+adB Dholera Special In,estment Re ion =SIR@ 7etroleum$ 9hemicals E 7etrochemical In,estment Re ion =797IR@ &u'arat International Finance 8ech 9ity =&IF8@ Kno)led e 9orridor Inte rated 8o)nship

Scale o# 6olistic De,elopment

&ource6 Gujarat 4ndustrial ;evelopment ,orporation

Fi ure ((! Lar e scale pro'ects under)ay to maintain hi h 7ro'ect :+'ecti,e Special In,estment Re ions =SIR@ 797IR Delhi %um+ai Industrial 9orridor =D%I9@ SEDs &IF8 BI& (0(0 %ultiB%odel lo istic par" 8)in 9ities Interlin"in I8BI8eS <i+rant &u'arat$(011 Biotech 7ar"s 7ort De,elopments
&ource6 ,ompany Reseach

ro)th rate

0lanned industrial development over more than !(( sB 5m8 !' such &4Rs at various sta$es of development. ;edicated petro#chemical re$ion8 more than :-( billion investment already made. ;edicated frei$ht and railway corridor for me$a#industrial development. << &KJs notified ,reatin$ Gujarat as a financial hub of 4ndia 0lanned infra development of : 2(( billion by 2(2( 1o provide lo$istics support to nodes comin$ under ;3, ,reatin$ planned me$a cities by e2tendin$ boundaries 1o boost a$ricultural $rowth 1o boost service sector contribution *-'% )oDs worth D&; 4<(/+ investment in the state si$ned 4mpetus to pharmaceutical and biotech industries ,apacity e2pansion to !((( ))1 by 2(2(

o# Ri,ers

!%

&ource6 Government of Gujarat

Banaskantha

Fi ure (3! De,elopment in &u'arat

Bio-Tech cluster
Patan Mehsana Himmatnagar

Kutch

Gandhinagar
Ahmedabad Surendranagar Anand Jamnagar Rajkot Porbandar Bhavnagar Amreli Junagadh Surat Vadodara Bharuch Narmada Kheda Panchmahal Dahod

Soda ash and saltbased industries, cement and steel pipes

Gujarat International Finance-Tec City Knowledge corridor Industrial corridor (DMIC) Savli Biotech Park Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)

182 industrial estates across Gujarat

Petroleum and brass parts

Engineering and ceramics

Soda ash and salt based Special Investment Region (SIR)

60 special economic zones (SEZs) across Gujarat 202 industrial estates across Gujarat

Navsari Valsad

Chemicals, petrochem. pharma, textiles and engineering 60 special economic zones (SEZs) across Gujarat To Bombay

Har$e#scale of development has happened on the C'((#5m Gandhina$ar#"hmedabad#"nand#Vadodara#/haruch#&uratE stretch and is also witnessin$ major development now.

18 Captive Ports along 1600 km coastline across Gujarat

Real Estate

!*

Real Estate

Special Economic Dones =SEDs@! 1here are << &KJs currently in Gujarat coverin$ appro2imately 2*7!2< hectares. 1hese &KJs are involved in several sectors such as7 biotechnolo$y7 power7 handicraft@artisan7 $ems and jewelry and port# based multi#products. ;ahej &KJ is a !*(( hectare multi#product scheme. ?andla &KJ7 &DR &KJ and &urat "pparel 0ar5 are the three functional &KJs in Gujarat.
Fi ure (-! &ID9 as De,eloper C Special Economic Dones

Sr. Game o# the SED Go

8ype o# SED

Area =in 6ects.@ !7*(( 2= 22 !<

4

!. 2. '. 4. <. %. *

;ahej &KJ7 Va$ra7 /haruch Gandhina$ar Klectronic &KJ )e$a 41 0rojects &KJ7 Gandhina$ar /io#1ech 0ar5 &KJ7 Vadodara &urat "pparel 0ar5 &KJ "hmedabad "pparel 0ar5 &KJ &hilpGram# .andicrafts &KJ7 /hachau7 ?utch

)ulti# product K.10 41@41K& /io#1ech "pparel "pparel .andicraft timber based activities

3 2 6

<% '= !<

1 5

&ource6 Gujarat 4ndustrial ;evelopment ,orporation

&u'arat SED success story so #ar! Gujarat has three operational &KJs coverin$ <(% hectares8 these are6 o ?andla &KJ o &DR &KJ o &urat "pparel 0ar5 &even +otified and operational &KJs7 coverin$ -7=!( hectares !< +otified &KJ coverin$ %7!!4 hectares 22 formally approved &KJs in Gujarat coverin$ *7*(2 hectares = 4n#principle approval coverin$ 27--' hectares

Special In,estment Re ions =SIR@! Gujarat is the first state to have passed the &pecial 4nvestment Re$ions (&4R) ordinance. 1he &4Rs are bein$ developed as $lobal industrial hubs with world#class infrastructure and adoption of $lobal best practices. "ppropriate authorities have been put in place to provide sin$le#window clearances and offer effective dispute settlement.

!=

Real Estate

Gujarat is settin$ up !' &4Rs8 each investment re$ion has more than !(( sB 5m area and is under various sta$es of development. ;holera &4R (about !(( 5ms from "hmedabad) is bein$ developed as one of the bi$$est &4R in Gujarat with hi$h connectivity throu$h e2pressways and metro rail to "hmedabad and other nearby cities. 1he &4R will have its own international airport. "bout 4(F of the area is dedicated for auto@auto ancillary7 a$ri products and plastic products and '(F is dedicated to te2tile and !(F for 41@41e& and Gems and Aewelry. 4t is estimated that the &4Rs will create more than =((7((( jobs in future7 supportin$ more than 2.< million people.
Fi ure (.! 7lanned in#rastructure #or Dholera SIR

&ource6 Government of Gujarat

Fi ure (/! 13 similar SIR planned in the state

&ource6 Government of Gujarat

!-

Real Estate

Fi ure (1! Lar eBscale in,estment re ions surroundin Re ion SiHe o# SIR =SI. "m.@ =*9ity )ithin 1.0 "m distance "hmedabad (!(( 5m)

me a cities.

7roposed Industries

;holera

/iotechnolo$y7 41@41e&7 education7 auto and auto#ancillary7 te2tiles "$ro based7 steel and metal7 pharmaceuticals "uto and auto ancillaries7 $eneral manufacturin$7 pharmaceuticals7 biotechnolo$y and bio#pharma ,eramic7 Kn$ineerin$ and automobiles ,hemical and petrochemicals7 port#based industries Kntertainment7 aBuaculture and marine en$ineerin$

,han$odar &anand I Viram$am +avla5hi .a9ira "liyabet

'!!**

"hmedabad (2< 5m) "hmedabad (2< 5m)

!=2 !-< !%-

Raj5ot (*% 5m) &urat (2(5m) &urat (=(5m) @Vadodara (!4( 5m) &urat@Vadodara (around =( 5m) Vadodara (2( 5m)

0,04R

4<'

Refinery7 petrochemicals

.alol I &avli

!22

Kn$ineerin$7 automobile ancillaries7 en$ineerin$ plastics7 electrical Ho$istics#based industries 0ort and port#based industries General manufacturin$7 pharmaceuticals7 ,R 7 biotechnolo$y and bio pharma General manufacturin$7 heavy en$ineerin$7 electronics and pharma biotechnolo$y "$ro#based industries

0ipavav "njar 5ha

!4< %'( !-%

/havna$ar (!4( 5m) /huj ('( 5m) Aamna$ar (!<( 5m)

&imar

*=

Auna$arh

&antalpur

!=%

)ehsana

&ource6 Government of Gujarat@,ompany research

Fi ure (2! SIRs Status

Sta es o# De,elopment Selection o# 9onsultants 7reparation o# Feasi+ility Report and 9oncept plan Goti#ication o# SIR 797IR 6alolB Sa,li Aliya Bet Santalpur 9han odar 7ipa,a, <iram am :"ha Ga,la"hi Simar An'ar

RDA Goti#ication

Detailed De,elopment 7lan

EIA Study

:perationalHed

Completed

Sent to Government

In Process

Under Progress

&ource6 Gujarat 4ndustrial ;evelopment ,orporation

2(

Real Estate

Dedicated Frei ht 9orridor =DF9@ and Delhi %um+ai Industrial 9orridor =D%I9@! " ;edicated 3rei$ht ,orridor (;3,) is bein$ set up between )umbai and ;elhi by 4ndian Railways to provide world#class infrastructure and enablin$ policy framewor5 for industrial activity in hi$h#impact areas surroundin$ it. ;)4, is a hi$h#impact industrial area within !<(5m distance on both the sides of ;3,. f the 2( industrial nodes identified across si2 states where ;3, passes7 si2 have been proposed for Gujarat alone. ;)4, is a me$a infra#structure project of D&; -( billion with the financial and technical aid from Aapan7 coverin$ an overall len$th of !4=' 5ms between the political capital and the business capital of 4ndia7 i.e. ;elhi and )umbai. 4t is e2pected to triple industrial output over the ne2t five years.
Fi ure (4! D%I9! 7roposed modules in &u'arat

&ource6 Government of Gujarat

Fi ure 30! D%I9 nodes in &u'arat D%I9 Gode 0alanpur#&idhpur#)ehesana "hmedabad#;holera Vadodara#/haruch /haruch#;ahej &urat#+avsari Valsad#Dmber$aon
&ource6 Government of Gujarat

In,estment reIuired =0SD %n@ !%(( !!((( 24(( %=<( 2'(( %!((

Employment en,isa ed <'<(( 2<(((( =4((( 2<(((( =4((( %-(((

2!

Real Estate

%ultimodal Lo istics 7ar" =%%L7@! Gujarat shares '=F of the ;)4, route coverin$ Valsad7 &urat7 Vadodara7 "nand7 "hmedabad7 )ehsana7 and 0alanpur. 1his corridor is e2pected to predominantly carry container traffic7 bul5 and brea5# bul5 car$o. 1o support this7 ))H0 is proposed where various value added services are rendered in addition to rail@road#based transportation. 1he par5s will provide e2cellent transport lin5s via rail and road7 custom clearance facilities7 sin$le#window services7 and value added services. G4;/ has ta5en initiative for settin$ up lo$istics par5s at five desi$nated areas in Gujarat6 !. "hmedabad#&urendrana$ar7 2. 0alanpur#)ehsana7 '. Gandhidham#&ama5hiali7 4. /haruch#;ahej <. &urat#.a9ira 7ort Gujarat has the lon$est coastline in 4ndia of !%(( 5m and its ports act as a $ateway to the land#loc5ed northern states of 4ndia. 1his reflects in the fact that ?andla port is 4ndia>s lar$est car$o handler by volume. 3urther7 Gujarat has one major port and 4! minor ports across the coastline. 1he ports also offer various other facilities li5e ship buildin$7 ship brea5in$ and an H+G terminal.
Fi ure 31! &u'arat act as a &ate)ay to land loc" Gorthern states o# India

Source: Blueprint for Infrastructure in Gujarat (BIG 2020)

<i+rant &u'arat$(011 "mon$ all states7 Gujarat is drawin$ the hi$hest investor attention. ;urin$ the CVibrant GujaratE summit7 an investment of 4+R2!t (D&;4<(b) was committed commitment7 which would $enerate potential employment for more than si2 million people. 1he success of 2(!! the summit can be seen from the fact that Gujarat si$ned investment ) Ds eBuivalent to all investment ) Ds put to$ether in

22

Real Estate

the past. "t the same time7 completion of projects in Gujarat is much better than the all#4ndia avera$e. "t present7 %%F of the projects committed in 2((< have been closed and *<F of &&4 projects committed in 2((- have been closed.
Fi ure 3(! <i+rant &u'arat su+mit has attracted hu e in,estor5s attention

&ource6 Government of Gujarat

BI& (0(0 Gujarat Government is envisa$in$ investment of O:'(( billion in various infrastructure project throu$h its vision document /lueprint for 4nfrastructure in Gujarat (/4G 2(2(). Land AcIuisition Hand acBuisition in Gujarat is comparatively a smooth process. 4n the past7 Gujarat 4ndustrial ;evelopment ,orporation (G4;,) has indentified7 acBuired7 developed and allotted land successfully to many of bi$ industrial projects. G4;, has acBuired around '(7<(( hectares of land and allotted !*7<(= hectares of developed land and 47%=< hectares of raw land.
Fi ure 33! 7ro ressi,e pro ress
(Area in ha.) 2,500 2,000 1,500 1,000 500 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 1,419 906 914 700 366 331 0 0 37 1,037 953 716 387 1,139 601

land

acIuisition

policy

helpin

industrial

Land Procured during last 17 years 2,118 2,020

&ource6 Gujarat 4ndustrial ;evelopment ,orporation

2'

Real Estate

Fi ure 3-! &u'arat International Finance 8ecB9ity ! &IF8

&ource6 Government of Gujarat

1he Government of Gujarat has set up NGujarat 4nternational 3inance 1ech#,ity ,ompany Himited> (a joint#venture between Gujarat Drban ;evelopment ,orporation Himited and 4nfrastructure Heasin$ P 3inancial &ervices) to develop and implement the project. &IF8 9oncept " hub for the $lobal finance services industry7 state#of#the#art connectivity7 and infrastructure and transportation access.

24

Real Estate

7ro'ect Description and 9omponent %i3 G431 would be the central business hub of the 4nte$rated ;evelopment 0lan sprawlin$ over about 2*7((( acres (about !(4 sB.5m) In#rastructure Lin"a es 4nfrastructure services to support the businesses include connectivity7 417 wal5#to#wor5 housin$7 security and services. " !2 5m dedicated K2pressway to the international airport is bein$ built as part of the project )ass Rapid 1ransit system is in place to lin5 the project to the cities of "hmedabad and Gandhina$ar 7ro'ect Location 1he project is located !2 5ms from the "hmedabad international airport and = 5m from Gandhina$ar alon$side the +ational .i$hway +o. =
Fi ure 3.! 9ontruction on &IF8 site has already started

&ource6 ,ompany Research

2<

Real Estate

Ahmedabad!Gandhina"ar
9ity Synopsis
Fi ure 3/! 9ity at a &lance

Hocation 4mportance 0opulation (2(!!) ,ity ran5in$ in 4ndia (0opulation) ;ecadal population $rowth ?ey residential area ?ey commercial location ?ey development locations
&ource6 ,ompany Research

,entral Gujarat Gandhina$ar is the capital of Gujarat8 %.' million *th 4(F 0rahaladna$ar7 &atellite7 "mbawadi &G .i$hway7 ,G Road &anand7 Viran$aum

"ccordin$ to 3orbes ma$a9ine of the Qorld>s 3astest Growin$ ,ities7 "hmedabad was named as one of the three 4ndian cities best positioned to $row and emer$e as a $lobal powerhouse. 4n ;ec7 2(!!7 a leadin$ research firm 4)R/ rated "hmedabad as the best of 4ndia>s me$acities. 4t is a house to many educational institutes such as 4ndian 4nstitute of )ana$ement (44))7 ,enter for Knvironmental 0lannin$ and 1echnolo$y (,K01)7 +431 etc.

Economy;Industries!
4t is an industrial hub for te2tiles and is also 5nown as C)anchester of 4ndia C. 1he city is home to many industrial sectors such as chemicals7 te2tiles7 dru$s and pharmaceuticals7 a$ro and food processin$ industries. &everal business con$lomerates such as "dani Group7 Reliance 4ndustries7 +irma Group of 4ndustries7 ,adilla 0harmaceuticals7 "rvind )ills7 etc. are present in "hmedabad

Key economic dri,ers!

"fter liberali9ation7 the state of Gujarat7 there has been a tremendous rise in manufacturin$7 industrial technolo$y7 construction7 and commercial sectors. "n increase in investments in te2tiles7 chemicals7 a$ro and food processin$ etc7 has made "hmedabad a $rowin$ industrial center in the country. 1he city has seen some major $rowth throu$h development of &KJs7 hotels7 townships7 and G431 etc.

2%

Real Estate

Fi ure 31! %a'or De,elopments 1owards me$a city Kmer$in$ as "uto .ub "hmedabad#Gandhina$ar#&anand to$ether planned as me$a city &anand is emer$in$ as the ne2t auto hub of 4ndia with 1ata )otors7 3ord and /ombardier operatin$ plants or ma5in$ investments. 0&" 0eu$eot ,itroen7 )aruti &u9u5i have announced plans to set up plants8 /ajaj "uto and .industan "eronautics are e2plorin$ the option of settin$ up plants8 "part from the e2istence world#class educational institutions li5e 44) (")7 +4;7 +431 etc in "hmedabad7 the 4ndian 4nstitute of 1echnolo$y7 Gandhina$ar (441# G+) at 0alej will be constructed at the bud$et of Rs !72(( crore. /R1& system is bein$ implemented and until date is been most successful such system.

Dp$radin$ spread in hi$her education /R1& I 1he /us Rapid 1ransit &ystem is a hi$h I speed corridor dedicated for ,+G buses. ;)4, # 1he proposed ;edicated 3rei$ht ,orridor (;3,) &abarmati Riverfront development Gujarat 4nternational 3inance 1ech ,ity (G431) I G431 &pecial Kconomic Jones (&KJs) &pecial 4nvestment Re$ions "u$mentation of )ajor road

;)4, nodes li5e &anand7 ;holera etc are e2pected to fuel industrial $rowth of "hmedabad. ;evelopment of !!.< 5m stretch on ban5s of the river &abarmati will house many par5s7 commercial comple2es7 and wal5ways. &pread across <(( acres of land7 G431 will be a $lobal 41 hub for financial services and a financial center for select product mar5ets. Qor5 on 2( hectares &antal 41 &KJs7 <4 hector ,haodi 41@41e& &KJ7 .aripur 0harma &KJ. &anand#Viran$um &4R and ;holera &4R "part from development of "hmedabad#Vadodara K2pressway8 wor5 is bein$ carried out on /a$do$ra#/havna$ar hi$hway8 /a$dodara#&urendra +a$ar# Radhapur Gujarat ,ancer &ociety has 5ic5 started the fundraisin$ for the development of QorldLs lar$est ,ancer ,are ,entre

Qorld>s lar$est ,ancer ,are ,entre

&ource6 ,ompany Research

Fi ure 32! Leadin

companies o# India ha,e a +ase in Ahmeda+ad

&ource6 Government of Gujarat

2*

Real Estate

Fi ure 34! Ahmeda+adB&andhina ar =Got to scale@

4417 0alaj "dani 1ownship

+ew .eaven6 1ata#"rvind Godrej township +ew retail and ,ommecial hub 1owards &anand6 Viran$aum &4R

G431

K2pressway to G431

&abarmati riverfront project

&anand6 1ata +ano@3ord

1owards6 ,hand$odar &4R (2(?m) 1owards6 ;holera &4R

"hmedabad# &urat# )umbai K2pressway

0harma# &KJ

&ource6 Goo$le@,ompany Research

Real Estate Scenario!

Residential +ational real estate players are enterin$ "hmedabad now. Godrej 0roperties7 "dani Real Kstate and now recently 1ata#"rvind Real Kstate joint venture announced a major township project in "hmedabad. Hi5e other mar5ets7 the slowdown in real estate mar5et has impacted demand for real estate in the city and retarded pro$ress of some lar$e#scale township projects. .owever7 there is also a si$nificant absorption in premium residential projects. " few lu2ury projects are also comiin$ up in the city. 2=

Real Estate

9ommercial "part from ,G road7 &G hi$hway is now a new retail and commercial hub of the city. ,ommercial demand is mainly from corporate houses and ban5in$@finance@insurance sectors. 41@41e& in the city is at a nascent sta$e and is e2pected to increase rapidly with the e2pansion of 41 companies movin$ out to 5ey 41 locations due to increased employee and infrastructure cost. 7rospects 4ncreasin$ footprint of $lobal companies in Gujarat is e2pected to fuel CRualityE of real estate in the city. K2pansion of "hmedabad )unicipal ,orporation limits7 increasin$ connectivity7 and infrastructure development are e2pected to further lead $rowth of real estate. " wide product mi2 is available in "hmedabad such as residential apartments7 plotted schemes7 bun$alows7 farm houses7 and commercial as well as retail spaces. Residential real estate in Ahmeda+ad 1he west 9one7 mainly comprisin$ places such as ;adra7 .aveli and the western 9one comprisin$ places li5e /oda5dev7 1haltej7 0rahaladna$ar7 &hilaj etc have seen better appreciation over the past few years compared to other locations at "hmedabad Hocations such as /opal7 Gota7 ,hand5eda etc are prominent upcomin$ residential locations.
Fi ure -0! 9entral and )estern Ahmeda+ad are pre#erred residential locations
Central Zone North Zone 300 250 200 150 100 50 0 Jan-Mar 2010 Jan-Mar 2011 Apr-Jun 2010 Apr-Jun 2011 Jul-Sept 2011 Oct-Dec 2010 Oct-Dec 2011 2007 Jul-Sep 2010 East Zone City Index West Zone

&ource6 +ational .ousin$ /an5 (+./)

Fi ure -1! Key locations in ,arious Hones Dones 9entral Done East Done /hadra7 ;udheswar7 Gomtipur Gam8 ld Gai5wad .aveli7 Viratna$ar8 Vastral8 Girdhar +a$ar7 Julta )inara Qadi$am

Aest Done /oda5dev8 "mbli /opal8 Aodhpur8 &ola$am8 1haltej &hilaj Road8 Vastrapur8 Vejalpur8 &ola Road8 "mbawadi8 ,hand5heda Gam

Gorth Done /uddh +a$ar8 &aijpur#/o$ha8 &ardar +a$ar8 Vishnu +a$ar

South Done "bad ;airy8 /haduat +a$ar8 Gordhan Vadi8 Ramvadi8 Vatva Gam8 Vishal +a$ar

&ource6 +./

2-

Real Estate

#urat
Fi ure -(! 9ity Synopsis Location 4mportance 0opulation (2(!!) Southern part o# &u'arat. ;iamond capital of 4ndia8 4. =million

,ity ran5in$ in 4ndia (0opulation) =th (the second lar$est city in Gujarat) ;ecadal population $rowth ?ey residential areas ?ey commercial location ?ey development locations %'F "dajan7 Vesu I ,anal Road7 Ghod ;od Road etc. Rin$ Road7 0arle point area7 1e2tile mar5et area .a9ira7 &achin7 plad

&ource6 ,ompany Research@ ,ensus of 4ndia72(!!

"ccordin$ to 1he ,ity )ayors 3oundation7 &urat ran5s fourth in a $lobal study of fastest#developin$ cities in the world.

Economy;Industries!
4t is one of the fastest#$rowin$ cities in 4ndia in terms of economic prosperity and has re$istered one of the hi$hest G;0 $rowth rates of !!.<F over 2((%I2((*. &urat is home to many te2tile and diamond industries. 4t is also 5nown as the diamond capital of the world. 4t contributed to 42F of world>s total rou$h diamond cuttin$ and polishin$8 !( out of !2 varieties of diamonds in the world are processed in 4ndia7 contributin$ to : !( billion7 which from appro2imately %<F of the total diamond e2ports from 4ndia. &urat is emer$in$ as a potential hub for 41@41e&7 ,hemicals and 0etrochemicals7 and 0orts sectors. " lar$e petrochemical comple27 a $ems and jewelry par5 and centrally#promoted &urat &KJ are e2pected to boost industrial and economic $rowth of the city. 1he city has attracted a si9eable amount of 3orei$n ;irect 4nvestment (3;4) in various sectors li5e ener$y and oil and $as. "n investment of 4+R '((( ,rore has been made in the .a9ira H+G terminal project. 1he port facilities would attract si9eable investments.

'(

Real Estate

Fi ure -3! Industrial De,elopment in Surat

&ource6 Government of Gujarat

Key Economy Dri,ers! K2istin$ industries such as te2tiles7 embroidery and diamonds7 alon$ with boomin$ real estate and upcomin$ port#based industries will continue to be 5ey drivers of &uratLs economy.
Fi ure --! %a'or De,elopment K2pansion of .a9ira 0ort /R1& Dp$radation of "irport " container terminal is proposed at .a9ira7 which will facilitate imports and e2ports. Qor5 on two routes to be developed under 0hase ! on &urat +avsari and ;umas resort# canal road and &arthana Aa5aatna5a has started ,onstruction of a new terminal buildin$ eBuipped with modern facilities has been completed in a record one year. 3urther7 construction of a second runway and e2pandin$ the current runway to 2<(( m have been proposed. !.<( hectare7 &DR &KJ at &achin caterin$ to diamond7 jewelry and te2tile industries 2.<% hectare &urat "pparel 0ar5 at Vanj '.*4 hectares $ems and jewelry &KJ at 4chapor !-< &B. ?) &4R is proposed at .a9ira7 2= 5ms from &urat. 3ocus industries would be chemical and petrochemical industries7 port and port#based industries 7 and heavy en$ineerin$ industries uter rin$ road a %% ?) rin$ road proposed by 2(!4 to provide easy access to future twin cities of +avsari and &urat ;)4, node at &urat#+avsari envisa$e investment of more than :% billion and more than =4((( new employment

&KJ

&4R

0roposed ;)4, +ode

&ource6 ,ompany Research

'!

Real Estate

Fi ure -.! Surat %ap =Got to scale@

lpad Dpcomin$ residential locations

1owards 0,04R 1owards "liyabet

,horyasi &uvali K2istin$ te2tile mar5et

Dpcomin$ Retail and residential destination

&urat "pparel 0ar5 .a9ira &4R

&DR &KJ 1owards )umbai

&ource6 Goo$le@,ompany research

Real Estate Scenario! Residential Real estate is a new emer$in$ business in &urat. 1he housin$ sectors is one of the most preferred se$ments in &urat. &urat is e2pandin$ in all directions and leadin$ property developers are comin$ up with all 5inds of affordable and lu2ury housin$. Har$e#scale +R4 interest is also seen in &urat. 9ommercial ,ommercial demand mainly comprises te2tile office space7 corporate offices7 ban5s7 and the financial sector etc. 1he retail property sector is $rowin$ too with more and more multiple2es7 malls and retail shops comin$ up.

'2

Real Estate

Real Estate in Surat 1he central and western 9one of &urat is witnessin$ major demand for real estate6 "dajan (Rs. '7((( I '7<((@sBft). Vesu I ,anal Road ( Rs. '2(( I 42((@sBft)7 Ghod ;od Road I Rs. 4((( I <(((@sB. ft etc. 4n commercial space location near Rin$ Road I (Rs *<((@&B feet) te2tile mar5et area (4((( I %(((@ &B ft)7 0arle 0ointIRs.4(((I %(((@&Bft V+ Dniversity Road I new Rs. '<(( I Rs. <((( have si$nificant demand
Fi ure -/! 9entral and )estern Surat )itnessin real estate demand
West South 250 200 150 100 50 0 2007 Jan- Apr-Jun Jul-Sep Mar 2010 2010 2010 OctDec 2010 Jan- Apr-Jun Mar 2011 2011 JulSept 2011 OctDec 2011 Central City Index

ma'or residential
North East

&ource6 +./

Fi ure -1! Key locations at ,arious Hones Aest Rander8 "dajan8 Aahan$ipura8 0alanpur 9entral +anpura8 Rustampura8 &onifaliya8 )u$lisara Gorth East South ?atar$am8 Ved @ Varachha8 Ddhana8 ;abholi8 "mroli8 +ana /hestan8 ,haprabhatha Varachha8 0andesara8 Dmarwada8 /amroli 0una8 &imada

&ource6 +./

''

Real Estate

Vadodara
9ity Synopsis
Fi ure -2! 9ity Synopsis Location 4mportance 0opulation (2(!!) ,ity ran5in$ in 4ndia (0opulation) ;ecadal population $rowth ?ey residential area ?ey commercial location South East o# &u'arat ,ultural city of 4ndia and upcomin$ 41 destination !.= )illion (the third lar$est city in Gujarat) 22F (2((!#!!) "5ota7 "l5apuri7Gotri7Vasna Road "l5apuri7 ld 0adra road7 )a5arpura

&ource6 ,ompany Research@,ensus of 4ndia

Vadodara is eBuidistant to cities li5e "hmedabad and &urat alon$ +.#=. 3urther7 the industrial hub li5e .alol#&alvi and /haruch are close to Vadodara and hence the city is $rowin$ rapidly. ;ue to the presence of numerous educational institutions in the city7 an abundance of s5illed and intellectual manpower is available for various industries and for RP; activities. Economy;Industries! 1he industrial $rowth of Vadodara runs throu$h the $olden corridor and is also 5nown as CGateway to the Golden ,orridorE7 as all the rail and roadways that lin57 ;elhi7 "hmedabad and )umbai also pass throu$h Vadodara7 includin$ the ;elhi )umbai 4ndustrial ,orridor (;)4,). )any lar$e chemicals and petrochemicals7 pharmaceuticals7 biotechnolo$y7 $lass7 en$ineerin$7 and tobacco industries have a presence in Vadodara. Har$e state 0ublic &ector Dnderta5in$s (0&Ds) such as Gujarat "l5alis and ,hemicals Himited (G",H) and Gujarat 3ertili9ers and ,hemicals Htd. (G&3,) and many privately#owned manufacturin$ plants are located in Vadodara. 1here has been si$nificant investment in the chemicals and pharmaceutical &ectors. Vadodara has tremendous scope for $rowth in processin$ industries7 mainly becuase it is an e2clusive producer of dolomite and fluorspar

'4

Real Estate

Fi ure -4! Industries in <adodara

&ource6 Government of Gujarat

Key Economy Dri,ers! 0ro2imity to two of the bi$$est commercial cities of Gujarat # &urat and "hmedabad and industrial hubs li5e /haruch and .alol# &alvi 41@41e& base increasin$ in Vadodara ,omparatively hi$h literacy rates and increasin$ industrial and 41 investments
Fi ure .0! %a'or De,elopment! Dpcomin$ 4ndian 4nstitute of 4nformation 1echnolo$y (4441) ;)4, +ode "uto hub "u$mentation of present +ational .i$hway = (+.=) K2pressway /R1& 4nternational ,ompanies .i$hly advanced 4441 at cost of !'( cr ,."+GK 1 &tate 4+R )+@/+ to boost 41 in

;)4, node at Vadodara#/haruch envisa$es investment of more than :2.< billion and would create more than =4((( new employment General )otors present at .alol /etween "hmedabad and Vadodara to a !(#lane e2pressway in ne2t three years. "hmedabadIVadodara#&urat#)umbai e2pressway is under construction. 1o au$ment e2istin$ infrastructure "part from 4ndian companies7 ,hinese companies are also startin$ industrial base in Vadodara6 for e.$. ,hinese company 1/K" will be settin$ up a Rs 2<(( ,."+GK 1 4+R )+@/+ crore $reen#ener$y project in ?arjan town of Vadodara district. /iotechnolo$y &KJ (!4.* hectors) at &alvi Kn$ineerin$ &KJ by &u9lon (!(! hectors) at Qa$hodia 41@41e& &KJ by +ai 0ian 4nfra (22( hectors) at Qa$hodia ;evelopment underway 1his hub would to cater Qestern 4ndia Vadodara#Rajpipla hi$hway Rajpipla#"n5leshwar#;ahej

&KJ

Rin$ Road "ircraft )aintenance hub "u$mentation of major road

&ource6 ,ompany Research

'<

Real Estate

Fi ure .1! <adodara %ap =Got to scale@

1owards "hmedabad

1owards .alal#&alvi &4R

"l5apuri

HP1 4nfotech

0adra Road

1owards /haruch

&ource6 Goo$le@,ompany Research

Real Estate Scenario! ,urrently7 $rowth in Vadodara has become sta$nant. .owever7 $iven rapid industialisation in the surroundin$ areas7 it could be a $ood se$ment for low#to#mid#mar5et residential se$ment and warehousin$ etc. 1he city>s real estate is also worth trac5in$ due to increasin$ 41@41e& footprint.

'%

Real Estate

$umbai
Fi ure .(! 9ity Synopsis Location 4mportance 0opulation (2(!!) ,ity ran5in$ in 4ndia (0opulation) ;ecadal population $rowth ?ey residential area ?ey commercial locations Aest coast o# India the capital of )aharashtra and the financial capital of 4ndia !=.4)illion )umbai is one of the most populous urban re$ions of the world. !2F (2((!#2(!!) ,olaba7 0rabhadevi7 /andra7 "ndheri7 western suburbs7 +avi )umbai7 1hane +ariman 0oint7 Qorli7 Hower 0arel7 /andra ?urla comple27 "ndheri (Kast)

&ource6 ,ompany Research@ ,ensus of 4ndia

Economy;Industries! )umbai is the financial and commercial capital of 4ndia7 and the headBuarters of many of 4ndia>s premier financial institutions such as R/47 /&K7 +&K7 and major public sector ban5s are located in the city 4t contributes !(F of all factory employment7 4(F of total income ta2 collection7 %(F of all customs duty collection7 2(F of all central e2cise ta2 collection7 and 4(F of 4ndia>s forei$n trade8 it contributes the hi$hest corporate ta2es. 4t is also home to many forei$n ban5s and financial institutions.

4n 2((=7 the Globali9ation and Qorld ,ities &tudy Group (GaQ,) ran5ed )umbai as an C"lpha Qorld ,ityE. 4t is one of the major 41@41K& destinations in 4ndia. +ew business comple2es are comin$ up in "ndheri and other districts in the northern part of the city. 1hese units mostly house 41 and 5nowled$e#based industries. Key economy dri,ers! ,ontinued importance as a commercial capital of 4ndia. 3inance7 41 and outsourcin$ industries7 trade and media#related industries. In#rastructure 7ro'ects! 1he country>s lar$est and most diverse infrastructure for the 41 industry is emer$in$ alon$ the C?nowled$e ,orridorE between )umbai7 +avi )umbai7 and 0une. "nnouncement of an international bid for ;haravi &lum Rehabilitation &cheme7 )etro7 /andra I Qorli &ea Hin57 +ava &ewa .arbour Hin57 have $iven $reat boost to current and future infrastructure. A+01 I Aawaharlal +ehru 0ort is the lar$est port in 4ndia7 handlin$ close to <(F of the country>s post traffic. ;ue to the port there has been a si$nificant increase in e2ports and imports.

'*

Real Estate

Real Estate Scenario! .i$h demo$raphics and increase in employment and income have led to si$nificant rise in real estate. Qith more than a third of )umbai is covered with densely populated slums and more than !%((( dilapidated buidlin$s. .ence7 there is si$nificant scope of slum rehabilitation and re# development projects in )umbai. Qith more clarity on the ;evelopment ,ontrol Re$ulations (;,R)7 the real estate sector has come out of standstill and is now providin$ a better level#playin$ field to all real estate players. Release of te2tile mill land for development7 increase in 3&4 from 2 to 4 in &,/; /andra ?urla ,omple27 and possible release of salt pans for development mi$ht provide $reat opportunities for $rowth in real estate development. &hort#term real estate scenario in )umbai loo5s slu$$ish and property prices may fall. .owever7 the lon$#term real estate scenario in )umbai loo5s promisin$7 underpinned by increase in disposable income and employment Residential Real Estate in %um+ai ;ue to limited land supply in )umbai7 residential real estate has $rown in all 9ones. " correction of !(#!<F is e2pected in select micro mar5ets due to reduced affordability followin$ the unprecedented increase in real estate prices and hi$h interest rates.
Fi ure .3! Areas such as Lo)er parel etc.$ headin )hile others are sta nant
Zone 1 Zone 4 350 300 250 200 150 100 50 0 Jan-Mar 2010 Jan-Mar 2011 Apr-Jun 2010 Apr-Jun 2011 Jul-Sept 2011 Oct-Dec 2010 Oct-Dec 2011 Jul-Sep 2010 2007 Zone 2 Zone 5

#or correction
Zone 3 Zone 6

&ource 6+./

Fi ure .-! <arious locations in "ey Hone o# %um+ai Done 1 ,uffe 0arade7 )alabar .ill
&ource6 +./

Done ( Hower 0arel7 )atun$a Kast7 )ahim Qest

Done 3 /andra Qest7 "ndheri Kast7 shivara

Done -

Done .

Done / /handup7 )ulund

?urla Kast7 )alad7 1un$wa@,hadivali7 /orivali@?andivali7 ,hembur ;ahisar7Gore$aon

'=

Real Estate

%&R
Fi ure ..! 9ity Synopsis Location 4mportance 0opulation (2(!!) ,ity ran5in$ in 4ndia (0opulation) ;ecadal population $rowth ?ey residential area ?ey commercial location Gorth India +ew ;elhi is capital of 4ndia !%.')illion ne of the most populous urban re$ions of the world. 2*F (2((!#2(!!) ,olaba7 0rabhadevi7 /andra7 "ndheri7 Qestern &uburbs7 +avi )umbai7 1hane +ariman 0oint7 Qorli7 Hower 0arel7 /andra ?urla comple27 "ndheri (Kast)

&ource6 ,ompany Research@ ,ensus of 4ndia

+ational ,apital Re$ion (+,R) is a name of a metropolitan area that encompasses the entire +ational ,apital 1erritory of ;elhi as well as urban areas in state of .aryana7 Dttra5hand7 Dttar 0radesh7 and Rajasthan. 4t is the world>s second lar$est urban a$$lomeration with population of 22 million and is the lar$est by area. 1he population of ;elhi7 as per the 2(!! census7 is estimated at !%.' million. Economy;Industries! ;elhi is the political capital of 4ndia and is one of the most powerful cities in the world. 4t is an important commercial center in &outh "sia with per capita income of 2.< times the national avera$e. ?ey services industries include information technolo$y7 telecommunications7 hotels7 ban5in$7 media and tourism. 4t is one of the most favored destinations for 3;4. Key Economy Dri,ers! 1here has been a tremendous mi$ration of people to ;elhi and other +ational ,apital Re$ions. 4t comprises many colle$es and institutions. 4t is home to many research institutes includin$ "44)&7 4417 4431 etc. /ein$ a political capital and a historical city7 ;elhi is a stron$ tourist attraction. In#rastructure 7ro'ects! 1here is lot of major re#development activity ta5in$ place in ;elhi7 includin$ the 4nternational airport. )etro Rail has been constructed and major wor5 is bein$ done in the mass rapid transit system. &lum rehabilitation activity is active in ;elhi. &lum rehabilitation schemes has been proposed for ' million dwellers.

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Real estate scenario! +,R is one of most favored real estate desitinations in 4ndia and Gur$aon7 +oida7 Greater +oida have witnessed hu$e investments in the previous decade. 1he planned development of +,R has $iven a stron$ boost to development of real estate.
Fi ure ./! Fi ure! Done & )itnessed the hi hest appreciation in the past #e) years amon all
Zone A Zone E 250 200 150 100 50 0 2007 Index JanMar 2010 Index AprJun 2010 Index JulSep 2010 Index OctDec 2010 Index JanMar 2011 Index AprJun 2011 Index JulSept 2011 Index OctDec 2011 Index Zone B Zone F Zone C Zone G Zone D City Index

&ource6 +./

Fi ure .1! Key locations at ,arious Hone in Delhi Done A Done B Done 9 Done D Done E Done F Done & Vasant Vihar P &outh K2t P 3riends ,olony &a$darjun$ Knclave Vasant ?unj7 )ayur Mamuna Vihar7 0unjabi /a$h P Vihar7;war5a P 4nderpuri P &halimar 0itampura Rohini K2tension Govind 0uri7 ;a5shinpuri7 Ra$hubir +a$ar7 &an$am Vihar7 ?arampura7 )an$ol 0uri7 +iran5ari Gha9ipur ;airy7 ,olony7 0andav &riniwas 0uri7 +a$ar

&ource6 +./

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ther &ities #napshot

a. 6ydera+ad
South India ,apital city of "ndhra 0radesh *.*4 million ne of the most populous urban re$ions of 4ndia. '<F (2((!#2(!!) Aubilee hills7 /anjara hills7 ?u5atpally Gachi /owli7 ?u5atpally7 Fi ure .2! 9ity Synopsis Location 4mportance 0opulation (2(!!) ,ity ran5in$ in 4ndia (0opulation) ;ecadal population $rowth ?ey residential area ?ey commercial locations

Jubilee hills

&ource6 ,ompany Research@ ,ensus of 4ndia

Fi ure .4! Real Estate 7rice trend

West Zone Central Zone City Index 250 200 150 100 50 0 2007 JanMar 2010 AprJun 2010 JulSep 2010 OctDec 2010 JanMar 2011 AprJun 2011 JulSept 2011 OctDec 2011 South Zone Other Zone North Zone East Zone

&ource6 +./

Fi ure /0! Key locations at ,arious Hone in 6ydera+ad Gorth 9entral Aest Done South Done Done Done &erilin$ampally7 ?anchanba$h7 Rutubullap ?achi$uda7 0atancheruvu @ /e$umba9aar7 ur7 "lwal7 .imayathn Ramachandrapu Rajendra +a$ar )al5aj$iri7 a$ar7 ram7 ?u5atpally /e$umpet7 1olichow5i7 )arredpally 0anja$utta7 7 1arna5a "meerpet7 Aubilee .ills
&ource6 +./

:ther Done &hamshab ad

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+.

Ban alore
&outh 4ndia ,apital city of ?arnata5a =.4- )illion ne of the most populous urban re$ions of 4ndia. 4-F (2((!#2(!!) ?ormana$ala7 A0 +a$ar7 Qhitefield7 4ndra na$ar Qhitefield7 .osur Road7 ;evanahalli

Fi ure /1! 9ity Synopsis Hocation 4mportance 0opulation (2(!!) ,ity ran5in$ in 4ndia (0opulation) ;ecadal population $rowth ?ey residential area ?ey commercial location

&ource6 ,ompany Research@ ,ensus of 4ndia

Fi ure /(! Real Estate 7rice trend

Zone C Zone F 200 180 160 140 120 100 80 60 40 20 0 2007 JanMar 2010 AprJun 2010 JulSep 2010 OctDec 2010 JanMar 2011 AprJun 2011 JulSept 2011 OctDec 2011 Zone D City Index Zone E

&ource6 +./

Fi ure /3! Key locations at ,arious Hones o# Ban alore Done 9 Done D Havella Road Richmond etc 1own7 4ndira +a$ar7 ."H 44 P 444 sta$e7 ;omlur Hayout7 &adashiv +a$ar7 /enson 1own
&ource6 +./

Done E Aaya +a$ar7Rajaji +a$ar7 ?oroma$ala7"ir 0ort Road7 )alleshwaram7 A 0 +a$ar7 R.1 +a$ar7

Done F /anaswadi 7 Meswanthapura7 )athi5here7 /1) Hayout7 /,, Hayout

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c.

7une
Aestern India )ajor 41 hub of 4ndia <.(4 )illion ne of the most populous urban re$ions of 4ndia. '4F (2((!#2(!!) "undh7 /aner7 ?alyanina$ar7 ?haradi .injewadi7 .adapsar7 /aner7 Qa5ad

Fi ure /-! 9ity Synopsis Location 4mportance 0opulation (2(!!) ,ity ran5in$ in 4ndia (0opulation) ;ecadal population $rowth ?ey residential area ?ey commercial location

&ource6 ,ompany Research@ ,ensus of 4ndia

Fi ure /.! Real Estate 7rice trend

Central West 300 250 200 150 100 50 0 2007 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun 2010 2010 2010 2010 2011 2011 JulSept 2011 Oct-Dec 2011 East Others South City Index

&ource6 +./

Fi ure //! Key locations at ,arious Hone o# 7une 9entral East South 0arvati8 /ibvewadi8 ;han5awadi8 ?atraj8 .adapsar8 Ghorpodi 8 ?ondwa ?hudra8 Qanawrie8 Dndari8 ?ondwa Aest Krandawana8 "undh8 0ashar8 ?othrud8 /opadi8 Vad$oaon /hudru5 :thers .injewadi8 1her$aon8 ,hinchwad8 /aner8 Merwada8 Qa5ad8 0imple &auda$ar8 ,ha5an ?asba ?harachi 0eth8 +ana 0eth8 &hivaji +a$ar

&ource6 +./

4'

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8his pa e is le#t +lan" intentionally

44

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4<

Real Estate

Disclaimer! 1his document is provided for assistance only and is not intended to be and must not alone be ta5en as the basis for an investment decision. +othin$ in this document should be construed as investment or financial advice7 and nothin$ 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. 1he intent of this document is not in recommendary nature. Kach recipient of this document should ma5e such investi$ations as it deems necessary to arrive at an independent evaluation of the information referred to in this document (includin$ the merits and ris5s involved)7 and should consult its own advisors to determine the merits and ris5s of such an investment. 1he investment discussed or views e2pressed may not be suitable for all investors. "mplus ,apital "dvisors 0rivate Himited has not independently verified all the information $iven in this document. "ccordin$ly7 no representation or warranty7 e2press or implied7 is made as to the accuracy7 completeness or fairness of the information and opinions contained in this document.

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Amplus 9apital Ad,isors 7,t Limited 247 Government &ervant &ociety7 +ear )unicipal )ar5et7 off ,.G Road7 "hmedabad#'=(((1el6 (*- # '(!'*(((

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