presentation regarding Real estate in Delhi NCR Region.

1. Real Estate Business in NCR
By-
Sadhvi Goel

2. Preview
• Introduction
• Demand of housing in NCR
• Supply of housing in NCR
• Main players in real estate
• Salient features of real estate
• Highs and lows of real estate
• Future of real estate

3. Introduction
Hub of industrial and commercial activities
Major infrastructural developments
• Delhi Mumbai Industrial Corridor (DMIC)
• Faridabad – Noida – Ghaziabad Corridor
• Kundli – Manesar – Palwal Expressway
• Dwarka Expressway
• Noida – Greater Noida Expressway
• Yamuna Expressway
• Rapid Metro Rail Gurgaon
Slowdown since 2013

4. Demand of Housing in and around NCR
Subdued activity level in terms of new launches, sales
Unfavourable macroeconomic scenario
Weak investor sentiment
Impending rate cut making buyers focus on secondary
markets

5. Supply of Housing in and around NCR
Pressure on developers for substantial unsold inventory and liquidity constraints
Focus currently on project execution, lesser new launches
Mid and affordable housing segments expected to witness appreciation
Infrastructural developments expected to create positive impact on real estate market
Increase in inventory overhang from 38 months to 74 months indicates a weakening
market
Signs of stability as absorption remains constant
DDA’s approval of land pooling policy expected to unlock 40,000 acres of land and will act
as a cooling measure for property prices

6. Region-wise Key Players
Delhi
Supertech, Gaursons, DLF, Parsvnath,
Ansal, Raheja, Omaxe, Unitech, Amrapali,
Emaar MGF, DDA
Noida Prateek, Wave Infratech, 3C, Supertech, Lotus Greens
Gurgaon
DLF, Ansal, Unitech, IREO, TATA Housing, Emaar MGF,
Vatika, Paras, 3C, Anantraj, Godrej, Uppal, Vipul, Bestech,
Raheja, BPTP, Indiabulls, Ramprastha, Mahindra Life
Space, Chintels, Sobha
Bhiwadi
Avalon, Nemai, Terra City, M2K, Cosmos, Essentia,
Omaxe, Kajaria, Krish
Sohna
Raheja, IREO, Gold Souk, Avalon, Central Park, TATA
Reality, Godrej, MVL, Universal, ILD, Parsvnath, Paras,
Homestead
Dharuhera Bestech, Vipul, Piyush, Avalon, Parsvnath, Raheja,
Dwarkadhish
Ghaziabad
Sare Homes, SG Estate, Ajnara, Gaursons, Landcraft,
Prateek Group

7. Key Projects Launched in 2015

8. CRISIL Real Estate Star Ratings
Highest rating is 7 star and lowest is 1 star

9. Salient Features of Real Estate

10. Demand Supply Statistics

11. Delhi Market Analysis

12. Analysis of Peripheral Regions

13. Region Scan: Noida
Renewed interest as Noida is a cost effective micro-market
Micro-market primarily of end-users and local investors looking to upgrade
their current accommodation or investment
New launches in the mid-segment
Hampered by delayed deliveries
Priority destination as it is end-user driven
Accounted for 42% of total absorption in 2014

14. Region Scan: Gurgaon
Heavily investor driven region
Prices will be stagnant due to slow inventory absorption
Buyers shifting focus towards secondary markets
Prices expected to trend up in the long run due to increasing cost of
infrastructure and imminent development
Peripheral regions Sohna, Dharuhera, Neemrana, Bhiwadi witnessing demand
from end-users and investors
Sohna expected to cater to the spill-over demand from Gurgaon
Neemrana has attracted heavy industrial investment from Japanese firms

15. Factors Impacting Real Estate
Contrasting methods of land acquisition
followed by different jurisdictions
Infrastructure challenges in terms of water,
power and roads
Unsold inventory and real estate mostly located
in uninhabitable regions

16. Highs and Lows of Real Estate

17. Analysis
Real estate activity sluggish in terms of launch and absorption
Supply additions declined by 23% and absorption shrunk by 52%
43% share of launches in Greater Noida, 23% in Gurgaon
Average capital values of new launches fairly constant, indicating a
slow market due to low demand levels
Unsold supply build-up inhibited the capital value appreciation

18. Supply and Absorption Trends
Inventory Overhang (months) = Unsold Inventory at the end of a quarter /
absorption in that quarter

19. Pricing and Unsold Inventory Trends

20. Micro-market Trends
New Launch Absorption Unsold Inventory

21. Future of Real Estate

22. Land Pooling Policy

23. Land Pooling Policy
Aim is to prohibit the sale of land without owner’s consent while while enabling
private players to create housing pockets in a more viable manner
Small holdings will be pooled and a part of it will be taken for provision of
infrastructure and public facilities
DDA (land pooling agency) will provide basic amenities such as education, health,
water, sewerage
Rest of the land (40% - 60%) will be returned to original owners for development

24. Self-sustainable unit based on renewable
energy
Integrated green spaces, residential and
commercial areas
Minimal waste by increasing energy
efficiency and water conservation
Based on Gujarat International Finance
Tec-City
Developers will offer land parcels
DDA will create infrastructure before
handing over to developers for providing
residential and commercial complexes
Smart Cities

25. Other Policies
Increase in Floor Area Ratio (FAR) in Delhi
Affordable housing policy in Haryana
Low Density Residential Area (LDRA)
Transit Oriented Development (TOD) zone in Haryana