JUNE. 2015
| Vol. 01
NUMBERS BEHIND FARIDABAD 2015-16
Faridabad came into existence on the Haryana map in the year 1979, as the 12th district of the state.
Badarpur Cloverleaf Flyover, Faridabad
Faridabad today houses the 9th largest industrial estate in Asia employing nearly half a million people.
2015-16
Park Plaza, Faridabad
CONTENTS About the Region ...........................................................
06
Real Estate Numbers Administrative snapshot .................................................
08
The ROI Index (Changing price trends) ..........................
10
Prominent Launches .......................................................
12
Quality of Life Index The Happiness Quotient .................................................
14
The Safety & Wellness Index ...........................................
16
Major factors to consider ................................................
17
The Proximity Chart ........................................................
18
Game Changers ..............................................................
20
The Outlook ....................................................................
21
Our Research Approach .................................................
22
Glossary ..........................................................................
24
10,55,938 Population
(As per 2001 Census)
Sec 15, 21, 22, 23, 24, 15, 17, Green Fields etc. Major Residential Areas
Ballabhgarh, IMT, New Industrial Area etc. Important Locations
15.46 %
Planned Recreational Spaces
9,723
Population Density (Per Sq. Km.)
(Includes Faridabad city data whereas district density is 2,442)
34,368 Land Size (in Hectares)
06
About The Region
Located on the Delhi-Mathura road, Faridabad came into existence on the Haryana map in the year 1979, as the 12th district of the state. The region is bounded by the Delhi NCT border from the north, Gurgaon and the Aravalli Hills on the West and South and the Yamuna river on the east. Faridabad houses one of the largest industrial estates of Asia. The Municipal Corporation of Faridabad covers an area of 208 sq. kilometers of which 75% of the area is currently developed. The controlled area includes the Faridabad Township, Old Faridabad, Ballabhgarh and 38 revenue villages. The Badkal Lake, Suraj Kund Tourist Complex, Raja Nahar Singh Palace are some of the prominent cultural and recreational attractions. Whereas the industrial zones, IMT, New Faridabad, Anaaj Mandi are some of the prominent locations with economic importance. Faridabad also boasts of popular residential colonies and sectors like the Green Fields, Sector 119, 88, 87, 143, 146, 48 etc. This report would delve on various aspects of Faridabad, its past trends, administrative plans for the future, the level of happiness of their residents in its current capacity and future projections.
Happiness Quotient Our Happiness quotient suggests that the population of Faridabad is moderately happy with the quality of life and accessibility of amenities in the region. Even though, the amenities available in the region may not be matching the levels of a South Delhi and Gurgaon. The malls may not be as prime as the ones in Saket or Vasant Kunj, the recreational facilities may not match the standards of Gurgaon but are adequately placed to meet the current demands of the middle and upper middle class of Faridabad. Read more about the views of the residents of Faridabad and what makes them happy staying here on page 14.
50.79%
ROI Index Looking at the historic trends in the region Faridabad has not received high investor interest and has primarily been an end user market. Housing a large section of the population that is working in the manufacturing sector in Faridabad the average population here has modest incomes with limited disposable cash flows. Affordable housing has hence remained a key requirement of the region. Newer areas like Neharpar and Suraj Kund have gained end user interest in the last few quarters. Keeping in mind the current affordability of real estate prices here an upward trend cannot be discounted in the mid and long term. Read more about the future of Faridabad’s real estate on page 10.
Proximity Index Well connected to South Delhi & with connectivity to Gurgaon improving the new road infrastructure is sure to help boost real estate demand in the region. The soon to be introduced Metro Connectivity will also act as a catalyst in positively impacting life in the region. Read more about Faridabad’s proximity and its significance in the region’s growth on page18.
Safety & Wellness Index (SWI) Some green open spaces, a peaceful environment and good gated localities can be found in Faridabad. Proximity to industrial areas in close vicinity do hamper security levels in the region though security within gated societies is not an issue. Read more about the Safety & Wellness Index on page 16.
Quick Facts*
1 2 3 4
Faridabad became the 12th District to be added on Haryana’s map on 2nd August 1979. The Faridabad Controlled Area is mainly divided into Faridabad township, Old Faridabad, Ballabhgarh and 38 revenue towns. The economy is mainly dependent on industrial activities housing the 9th largest industrial estate of Asia. Proximity to South Delhi and Gurgaon provide a distinct locational advantage to Faridabad. The DelhiAgra National Highway- 44 also passes right through the middle of the region.
* Faridabad is a part of North West Delhi region, which is approximately 25,000 hectares in size, and is collectively represented in the Census 2011 data.
07
Statistics
34,368 Total Area (In Hectares)
41.69%
Planned Residential Use of Land
6.02%
Planned Commercial Use of Land
17.98%
Planned Industrial Use of Land
10
Metro Stations (As per Phase 3)
Average Price Trends of Ghaziabad Plots (In Sq. Yards) Min.` 10,821
Avg.` 30,681
Max.` 62,312
Apartments (In Sq. Ft.) Min.` 2,947
08
Avg. ` 3,656.50
Max.` 9,420
The Real Estate Numbers About this section The section ‘Real Estate Numbers’ focuses on the ever critical financial aspects of a region that directly impact the price trends, appreciation levels and its future projections. This report of Home Makers has tried to provide decisive data from the city master plans, population census, on-ground and online studies conducted by the team that go a miss many a time. The ‘ROI Index’, a part of this section, is a fast evolving tool being developed by the team that amalgamates multiple aspects impacting price trends and acts as a guide for investors in their decision making process. The ‘Prominent Launches’ section lines up a few of the talked about upcoming developments in the region.
Faridabad falls right on National Highway 44- Delhi – Mathura Road, an important corridor connecting Delhi to Agra and beyond. The region goes back in history to A.D. 1607 when Shaikh Farid, Treasurer of Jahangir, founded the town. The region came on to Haryana’s map as its 12th district in the year 1979. The 1991 master plan constituted of 91 sectors with a total urbanisable area of 38,743 acres. The master plan for the year 2025 covers more than 150 sectors that already exist. The KMP Expressway, Eastern Peripheral Expressway, Yamuna Expressway and the Dedicated Freight Corridors have all been planned to help boost the connectivity of the industrial units of Faridabad. The industrial belt is estimated to provide nearly half a million jobs and is the 9th largest industrial estate of Asia, with over 15,000 small, medium and large industrial units. Faridabad Old Town, Balabhgarh Old Town and the New Industrial Area are popular industrial zones in the territory. Sectors like 14, 15, 16, 79, 89, 21D, Green Fields are some of the prominent sectors and colonies in the region. The average residential density in Faridabad stands at 271 people per hectare (PPH) and is proposed to go up to 300 PPH as per the 2025 plan. Sectors including 94A, 96, 97, 99, 101, 102, 103, 140, 141 and 142 have been reserved as HUDA development sectors.
Amenities: NCR Planning Board- Water report (Regional Plan 2021) Statistics: Ghaziabad Master Plan 2021, Census 2011, DMRC map, Google search, Directorate of Education & Central Board for Secondary Education data, www.expedia.com, www.cleartrip.com, www.magicbricks.com, www.99acres.com,
Amenities Sectors 99, 112, 119, 122, 139, 143, 146 & 156 have been planned to largely develop low income group (LIG) and mid income group (MIG) flats with a planned PPH of 1125. Sectors 88, 85, 109, 14, 15, 16, Green Fields house some of the highest earning households of the region. The region is currently not connected by the metro but is soon to have 9 metro stations as per the phase 3 plans. The testing of the metro rail in Faridabad has already started and commercial operations are set to start by mid 2015. Metro connectivity is sure to boost connectivity in the region and Faridabad is pegged to have high traffic points for the metro. The metro corridor starts from Badarpur on the Delhi side of the border, to NHPC Chowk, Mewala Maharajpur through Faridabad New Town uptill YMCA Chowk. IT and ITes companies are also having a healthy presence in the area with that poised to grow further. Faridabad has an average ground water level of 12.3 meters, as per the 2009 NCR Planning Board- Water report which is relative in line with the average of NCR. Even with proximity to the Yamuna River the heavy industrialization in the region has affected water tables here. Ballabhgarh is one of the worst hit areas in the region when it comes to ground water levels, falling in the ‘Critical’ category. The administration has also banned pumping of ground water upto 5kms from Delhi-Haryana border on the Haryana side. Due to the high fluoride content a large part of the ground water is not suitable for drinking purposes. With large concentration of industrial units, large urban population there is always a pressure on the water tables in the zone which would only grow with the ambitious growth plans that the region has. The air pollution levels here are also a concern. Faridabad has had a unique growth pattern in the last few decades as it may not have seen the kind of development that other parts of NCR have. Heavy focus on industrialization has traditionally provided more blue collared work opportunities keeping a heavy focus on the LIG & MIG housing needs. Recreational facilities have hence been limited and are nowhere in comparison to other affluent parts of NCR. The shopping malls, restaurants, hotels and other recreational opportunities in the region have limited offerings thus also limiting the attraction it has received from the large Indian and foreign multinational companies. This may be changing now with a focus on setting up IT and ITES offices in Faridabad. Proximity to industrial areas and being right on NH-44 does pose its challenges for Faridabad which are unique in nature. With a large cover of industrial facilities in the region there is a heavy presence of the lower-middle and middle class families who work in the nearby units. Sector 14, 15, 16, Green Fields etc. in Faridabad accommodate the wealthier sections of the region and hence have the presence of shopping arcades, malls and other recreational facilities. A number of eyes are currently there on Faridabad and its development plans and it would be interesting to see how it shapes up in the coming decade. * Faridabad is a part of North West Delhi region in the Census 2011 and the population of the complete North
12.3 Mtrs.
Average Depth at which water is available (Over Exposed)
11.43 -12.49 Mtrs. (Overall Delhi)
103
Prominent Schools
109
Prominent Colleges
18
Prominent Hotels
94.56
microgram/cubic metre
Air Pollution
(PM 2.5) data as of April 16-26,2015 Moderate: 65-100
Population Graph
10,55,938 in 2001 14,04,653* in 2011 24,38,000 estimated in 2021 38,86,407 estimated in 2031 *17,50,000 Holding Capacity in 2011
West Delhi region was 36, 56, 539 in 2011. Air Pollution: Average PM 2.5 level data as of April 16-26,2015- Haryana State Pollution Control Board
09
ROI Index
Price VS Growth (Price per Sq. Ft.)
2014
INR 3,656
-4%
2013
INR 3,828
16%
2012
INR 3,298
24%
2011
INR 2,658
29%
2010
INR 2,058
10%
2009
INR 1,870
Major Sectors with Their Price Trends 2014 2013 2012 2011
-
3,710
6,186
4,712
3,531
5,880
4,093
2,721 2,387
3,481
5,058
2010 2009
8,516
(Area)
Sector 21C
2,752 2,042
1,937 1,862
1,728
Sector 86
Sector 78
*The table only considers price trends and rental yields with 2009 as base year
2014
6,805
9,420
7,099
3,811
9,818
6,830
3,731
9,460
-
5,752
8,104
2,626
2009
4,318 -
6,640 -
2,045 1,750
(Area)
Suraj Kund
Charmwood Village
Neharpar
2013 2012 2011 2010
High Return Period Signifies the percentage of real estate which has shown better returns
50.0%
12.50%
(<3 Years)
(3-7 Years)
In Short Term
In Mid Term
37.50*%
In Long Term (>7 Years)
*The figure has been taken as a projection keeping in mind the trend graph of a 7 year period
10
Faridabad has been home to many locally affluent industrial families and has shown high household income levels on a consistent basis. On the contrary Faridabadâ&#x20AC;&#x2122;s development story has not panned out as well as some of its neighbors. Limited social infrastructure, limited modern large scale projects, slow pace of critical infrastructural development, security issues etc. have kept many prospective end users away from the region. Housing the 9th biggest industrial estate of Asia the manufacturing sector does provide high number of work opportunities for the lower middle and middle class. The upper-middle and upper class is required to travel to Gurgaon or South Delhi to meet there social needs on a regular basis. The lack of quality recreational facilities, quality commercial centers providing good work opportunities and questionable security levels in some of the areas would be critical points on which Faridabad would need to work. The Delhi NCR market has seen a sharp correction since 2013 with fall in prices to the tune of 20% to 30% and even more in some areas. On the contrary Faridabad has shown limited price movements in the last 5 years. Giving a stable return of 10% â&#x20AC;&#x201C; 25% on a year on year basis, like most other markets the region has seen a fall in the year 2014. With this downturn and limited acceleration in the local economy, unclear industrial results the real estate market for the national capital may further see corrections in the near term which could also be the reality for Faridabad. It is surprising to see the affordable price range that is prevalent in some of the sectors especially keeping in mind its connectivity to the Delhi border. Prominent sectors such as 21C or Greenfields plotted colony have shown a higher price range than its neighboring areas. Suraj Kund, Sec 86, Sec 84 etc. are seeing some quality residential projects being developed hence commanding a higher price than the others. Wider roads, better planning and planned recreational facilities add to the offerings in these localities. The Suraj Kund â&#x20AC;&#x201C; Sohna Road is planned to be widened to 75 meters & 90 meters running parallel to the National Highway and should add to the connectivity of the location. HUDA has reserved development in sectors 94A, 96, 97, 99,101,102,103,140,141,142 which it would develop by itself. The historic price trends of Faridabad have shown a strong positive correlation with gold and the interest rate trends. This can be anticipated keeping in mind the traditional importance of gold for investment purposes and the lending behavioral trends for the affordable housing market. www.homemakers.co.in
The ROI Index takes in to account numerous factors including past price trends, demand & supply factors, projected industry stats, consumer sentiments in the short term, planned infrastructural development and macro parameters that would shape the future of the region. The real estate market of Faridabad has predominantly been end-user driven with limited investor interests. With a large majority of job opportunities available in the region coming from the industrial units the requirement for housing has largely been in the low and mid segment. Unlike its neighbors like Gurgaon and Noida, Faridabad has not been able to woo the corporate sector. Nehar Par in the past has shown higher returns with the area in close proximity to the Delhi border (Mathura Road) being another preferred location. With the service sector now getting impetus in Faridabad and a number of IT, ITES units planned to be opened in the near future the demand for Faridabadâ&#x20AC;&#x2122;s real estate is bound to increase. Faridabad is one of the few micro-cities of NCR that does not yet have metro connectivity. With the metro installed and scheduled to start operations in the coming months this would be a major boom for real estate prices here. Suraj Kund that has seen new inventory released in the recent past and new construction planned in the coming months would catch end user attention being just a little over 5kms from Okhla Industral Area in Delhi. With the Faridabad market largely being end user driven a fair split between rent and purchase can be seen. The ROI Index is a comparative tool and takes into account the developments of neighboring regions in addition to the regionâ&#x20AC;&#x2122;s internal factors.
Key Factors to Consider The nature of property being purchased and whether it is in the mid segment or luxury segment. There is only a handful of luxury segment projects and inventory movement for them has been slow. Proximity to well developed industrial areas have shown better demand and IT-ITES segment is also planned to come up in a big way. Traditionally the highest return on investment has been achieved in North West Delhi 1 in the long term with a spurt in 2011-12. Though due to economic and political uncertainties 2013 and 2014 have seen a drastic drop in the region. Connectivity and quality of infrastructure should be given priority while selecting a location in the zone.
Sources: www.magicbricks.com, www.99acres.com have been referred for both new bookings and resale cases.
The ROI Index Signifies the estimated trends of real estate prices.
Luke Warm
In Short Term (< 3 Years)
Warm
In Mid Term (3-7 Years)
Warm
In Long Term ( > 7 Years)
Economical for End User Signifies the percentage of real estate which would have been more economical on rent or as a purchase
56.25% Rent
vs
43.75%
Purchase
Insights Proximity to industrial areas has been a critical factor impacting demand trends. The emergence of service sector should also play crucial role in the coming years with increasing number of work opportunities. Expectations of further corrections in the interest rates should play some role in demand levels in the region in the near term. Proximity to Delhi has played a key role with sectors on the Mathura Road demanding higher values. New connectivity zones are going to play an important role in the future. Leasing has remained a relatively reasonable option over the past decade and this trend should continue. With the metro connectivity soon to be introduced in this year areas close to it would surely see a positive impact in the short term. Though an overwhelming enthusiasm should not be expected. 11
Prominent Launches With Faridabad being a popular region of Delhi NCR there are many new offerings and existing projects that can be looked into. The locations of Neharpar and Suraj Kund have many new projects being delivered. Some of the areas where these developments are taking place are provided; The table highlights some of the relatively new / upcoming localities and projects in Faridabad. The above list is not an exhaustive list by itself and does not mention the projects in any order of preference. Home Makers does not, at any level, promote or holds preference for any of the above mentioned projects and this list of projects has been added for information only. In order to cover the vast territory of Faridabad and its developments we have included some of the upcoming localities of various private developers. The premium segment units of the old and well established colonies have not been added to the above list due to low transaction levels.
12
While evaluating any project or locality we would urge you to study the following aspects closely; The current status and planned administrative development of the location including its connectivity, amenities, social infrastructure etc. The nature of the project being evaluated and whether all the aspects of a township are being culminated in that region / pocket. Developer background and delivery of past projects both from the angle of time taken and quality of construction. The construction agency and other stakeholders involved with the project. The legal status of the land on which the project is being developed and whether or not the same is clear.
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Sec 86 Faridabad Sec 82 Faridabad Sec 76 Faridabad Charmwood Village, Sec 39, Suraj Kund Faridabad Sec 37, Suraj Kund Faridabad Sec 84 Faridabad Sec 84 Faridabad Sec 77 Faridabad Neharpar Faridabad Sec 19 Faridabad Sources: www.99acres.com
Omaxe Heights
Developer: Omaxe Group Estimated Completion: Complete
Puri Pranayam
Developer: Puri Constructions Estimated Completion: Complete
BPTP Parklands Developer: BPTP
Estimated Completion: 2016
Royal Retreat Developer: Eros
Estimated Completion: Complete
Omaxe Hills
Developer: Omaxe Group Estimated Completion: Complete
Puri Pratham
Developer: Puri Constructions Estimated Completion: 2016
Omaxe Spa
Developer: Omaxe Group Estimated Completion: 2018
KLJ Platinum Heights Developer: KLJ Developer Estimated Completion: 2018
BPTP Grandura Developer: BPTP
Estimated Completion: Complete
Mahindra Chloris
Developer: Mahindara Life Spaces Estimated Completion: Complete
Quality Of Life Scores
About the Section
44.97%
Amenities Available
56.13%
Feeling of Security
59.85%
Proximity to Work
46.50%
Availability of Recreation Facilities
Disclaimer: In order to increase the accuracy of the above numbers the Happiness Quotient index has been appropriately molded and hence may have variations compared to the earlier reports.
14
â&#x20AC;&#x2DC;Quality of Lifeâ&#x20AC;&#x2122; index evaluates the equally important social aspects of a region. These aspects go beyond the traditional demand & supply numbers; price trends etc. and actually give you an insight on the quality of life in the geography being referred to. It is important to keep in mind that it is this quality that attracts a person to make the critical decision of whether to settle in one location or the other. There are many regions that have seen the initial rise in real estate and have been much talked about but never really developed as a choice to consider for the enduser. We at Home Makers believe that it is extremely important to keep an eye on this index for evaluating the development of the region in the medium and long term.
Faridabad has been home to many affluent industrial families of Delhi NCR. Easy availability of industrial land has encouraged many individual manufacturers and Small & Medium Scale enterprises to build large sized units providing work opportunities to many. The other section of the population here is that of the workers and skilled or white collared employees who work in these units. The region has been housing a larger section of lower middle and middle class families, who have remained happy with the limited social capital that the region has to offer.
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Happiness Quotient
Highlights
(Higher percentages are considered better)
Undertaking this study, Home Makers started with the task to understand the ‘Happiness Levels’ of people in Faridabad. What the issues prevalent are? What makes Faridabad the location of choice for many? The amenities available in the region may not be matching the levels of a South Delhi and Gurgaon. The malls may not be as prime as the ones in Saket or Vasant Kunj, the recreational facilities may not match the standards of Gurgaon. The areas such as the sectors located close to the border of Delhi, on the Mathura road or new inhabitations of Suraj Kund have attracted attention of many end users due to the easy access it provides to South Delhi. Recent developments in Faridabad with focus on the services sector- IT & ITES institutions, banking sector etc is bound to have an impact on the social strata of the region and create demand for more quality social infrastructure. New connectivity points with Gurgaon, the FNG expressway etc. should provide better access to the job opportunities in Noida and enhance the ‘Proximity to Work’ score in the coming years. A good segregation of gated colonies from the industrial facilities close by have provided the inhabitants with a calm, refreshing green environment that they rate highly of. Safety issues were a concern that was raised by the citizens with close proximity to uninhabited lands, industrial parks etc. Issues of road and women safety were also raised during our personal discussions. Presence of limited number of Police Stations and administrative infrastructure has added to the problem of law and order with many crimes going unaccounted for. Cleanliness with blocked – overflowing drainages, poor quality roads is a common sight especially with the severe pressure of the industrial units in the area. It is important that Faridabad looks at fixing these issues in order to be a preferred location for the new population. Sectors such as Greenfield, Sector 15, 4 and the gated societies of Suraj Kund or Charmwood Village showed better livability standards than the others.
Availability of basic amenities with market areas in close proximity add to the Happiness Quotient Adequate facilities to meet the lower mid and mid income group needs A large part of the zone’s working population has their work places in close proximity
With many parts of the 1991 master plan still to be delivered it would be interesting to see the speed at which Faridabad develops in the coming years.
15
50.79%
Scores The below data is indicative and represents a comparison with other regions of Delhi NCR.
Safety & Wellness Index (Higher percentages are considered better)
54.46% Air Pollution
57.13%
Crimes Under IPC
2.51%
Connectivity/ Reach of Police Stations
3.18%
Connectivity/ Reach of Hospitals Only Multi-Speciality
Highlights Good open green spaces and calm environment inside well settled residential sectors though the overall environmental pollution levels are very high owing to the heavy presence of industrial facilities. Extremely limited social infrastructure as compared to the area being covered. 16
Some green open spaces, a peaceful environment and good gated localities can be found in Faridabad. Some of the well known medical facilities of the region include Asian Institute of Medical Sciences, Sunrise Hospital, Sun Flag Hospital Research Center, Janak Hospital, Saraswati Hospital etc. but with such a large region being covered under Faridabad there is a need of a lot more medical facilities in the region. Faridabad, as a district shows a very poor score for Connectivity of Hospitals which can be attributed to both lack of quantity and quality of these facilities. The importance of quality medical facilities also increases with the presence of such a large industrial setup where accidents are a regular phenomena. The Crimes under IPC may not show a very gloomy picture but it is important to keep in mind the lack of police stations and the unrecorded crimes in the territory. To say the least the residential population here does not feel very safe barring a few affluent sections of Faridabad. Faridabadâ&#x20AC;&#x2122;s environment and focus on creating green open spaces close to the residential localities does give it a unique charm greatly appreciated by its inhabitants. Being the 9th largest industrial city of Asia air pollution levels are bound to be high. Housing over 160 stone crushers that deliver for most of the construction activities of Delhi NCR also adds to the issue at hand. Both water levels and quality of drinking water is also impacted. With the population of Faridabad planned to increase by more than two folds by the year 2031 it is important this social infrastructure is looked into and fixed. Without this infrastructure Faridabad will not be able to attract the corporate sector it aims to and nor the end users for its upcoming residential facilities. Acts of eave teasing and violence against women are also plaguing the region. To sum it up there is a long way for the region to develop its Safety & Wellness Index. The large spread of the region is only going to amplify this problem at hand and prompt execution of the plans put in place would be the key for developing the region at the desired pace.
Social Factors to Consider A quick survey undertaken by the Home Makers team in the region showed some eye opening facts about the region and should surely be considered while making a decision on whether or not to stay or invest in the region. The results are part of a sample survey conducted in Faridabad in the regions of Greenfields, Sector 4, 15, 29, 35, 36 and 37. The survey equally covered residents of all ages, men & women, working professionals and non-working population, employed people and businessmen. A sample size of over 400 respondents has been put together for this study. The above trends may not cover the entire population of this region but do give an indication to the current scenarios prevailing here.
Interesting Facts The statements show the top responses and the respective percentages
The local population is satisfied with the open environment and proximity to the local markets meeting their daily needs. Environment / Locality
27.25%
Market Places
21.46%
Security
11.13%
Others
40.16%
A little over 40% of the respondents had their own businesses. Business
40.74%
Employed
28.40%
Others
30.86%
Over 80% of the respondents had their work areas in close proximity. Under 3 kms
43.10%
3 - 8 kms
37.71%
8 - 15 kms
9.76%
More than 15 kms
9.43%
Overflowing drainage systems, unsafe and low quality roads and security issues continue troubling the residents. Drainage system/ Cleanliness
34.38%
Roads
23.77%
Security
10.41%
Others
31.43% 17
Proximity Index The chart highlights Faridabad proximity score to various prominent locations, landmarks, connectivity zones of Delhi NCR and nearest amenities within the region. It is important to keep in mind that a critical aspect for development of any region is its location and proximity to all important parts of the city and amenities.
51.78%
Connectivity The table shows representative scores and not the actual proximity to a location. The higher the amenity or location/ zone on the scale the closer it is estimated to be in the region. The map highlights Faridabad area, the prominent junctions and critical transportation points. The number of amenities / infrastructure available in the region in terms of prominent multi-specialty hospitals, hotels, malls and police stations are also mentioned an marked on the proximity scale.
Centre Point | Bata Chowk
54.4%
Distance from work place
42.1%
90%
Closest
70%
50%
30%
70%
50%
30%
55.3%
90%
Closest
70%
50%
30%
Amenities & Public Conveniences 18
10%
Farthest
10%
Farthest
Prominent Junctions
73.43% Market Connectivity
Closest
Critical Transportation Points
Proximity Index
59.85%
90%
10%
Farthest
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G
Map of
FARIDABAD
Reference Grid Refers to Delhi NCT map Refers to Critical Transportation Points in the zone Refers to Prominent Junctions in the zone
ISBT
Kashmiri Gate
Highlights the area covered under Zone G on the map 0 - 100
Airport
NH 8
Ring Road
Refers to proximity level in the zone, with 0 standing for least proximity and 100 for maximum proximity.
Badarpur Metro Station
Delhi
Mathura Road Greater Noida
Gurgaon
90
100
80
Faridabad
Expressway
70 60 50
40
Railway Station
30
20
10
0
9
Malls
Map not to scale
18 19 Hotels
24
Police Multi-Specialty Hospitals Stations
19
Key Factors Development of Newer Pockets of Faridabad
The old well established sectors here have developed a healthy end-user base and have given above average returns over the last two decades. With Suraj Kund, Charmwood Village, Nehar Par having long awaited projects close to delivery end user demand should have a positive impact on price trends.
Connectivity of the Metro Rail
The Faridabad metro rail project which is expected to start operations by May-June 2015 is going to substantially boost connectivity in the region. The metro rail is currently going to extend from Badarpur in Delhi to YMCA Chowk in Faridabad. Connecting many sectors on the Mathura Road. There are also plans to start construction for the Gurgaon-Faridabad metro soon.
Proximity to the growing Industrial Units
Being the 9th largest industrial town in Asia, Faridabad has been home to many affluent industrial families of Delhi NCR. In the past residential colonies close to industrial sectors have shown better growth trends than the others. With more and more industry moving to Faridabad and the industrial presence being wiped off from Delhi this trend is likely to follow.
Enhancing road connectivity
Faridabad-Noida-Ghaziabad expressway, the KMP expressway which has already eased commute for the Nehar Par region, GurgaonFaridabad road, eastern and western peripheral road are all going to enhance connectivity of the region and impact real estate prices over the mid and long term. With real estate prices over the roof in Gurgaon and South Delhi, improved connectivity would bring more demand for Faridabad’s real estate at its affordable prices.
Absence of the investor audience
The region has predominantly delivered housing projects meeting the demands of the low and mid income group. In order to safeguard their margins developers here have only provided an average construction quality which has kept investors away from the region. With an impetus to develop the IT and ITES sector in the region demand for luxury projects is bound to go up in the longer term which should in turn bring in investor interest.
Development of Social Capital
The social infrastructure of Faridabad has always been a weak link in the city’s real estate story. Limited disposable income of employees working in the manufacturing sector have kept demands modest and hence limited the growth of social capital in the region. With better connectivity, introduction of IT Parks and other service oriented industries is going transform the demography and social setup of the society here. Development of social capital would remain the key for Faridabad in the longer term.
Game Changers In terms of real estate demand Faridabad has been left out of contention for a long time with demands increasing in other neighboring localities. The recent developments and the overall decline of the real estate sector in India and especially in Delhi NCR, has not helped matters for Faridabad. The market here has also seen heavy fall in demand levels in the last 12 months. With prices falling by over 30% in South Delhi or a Gurgaon amongst other regions end users, the few who are buying, are looking at these regions due to their better development, quality of life and connectivity. With the current macro economic factors, low real estate market sentiment the road ahead for Faridabad does look difficult atleast in the near term.
Macro Factors With a High Co-Related to Faridabad’s Growth GDP
The ROI Index study for Faridabad showed a high positive correlation with the GDP trends. With majority of the population involved with the manufacturing sector, good GDP numbers have shown positive real estate movement.
Gold
Faridabad’s price trends have shown a high correlation with the price trends of gold as it is an alternate asset class popular in the region.
Upcoming New Inventory
Even though very few new projects have been launched in the last couple of years some projects are nearing delivery which is going to attract end user interest in the short term.
The Outlook Faridabad’s real estate has not garnered the level of interest that it should have developed keeping in mind its locational advantages. Called by many as a gold mine there are a number of fundamental issues that the region needs to tackle before becoming a preferred location for many. The zone’s outlook is closely dependent on the delivery of infrastructure projects to boost connectivity with other parts of NCR. The major connecting point for Faridabad is the Mathura Road which connects it to South Delhi and the recently introduced expressway connecting it to Gurgaon. It is important that the above mentioned ‘Game Changers’ are closely watched to project the demand levels that can be expected in Faridabad. Prominent localities like sector 4, 5, Greenfields etc are going to give way to upcoming areas like Suraj Kund and Nehar Par. With the real estate landscape of Delhi NCR fast changing it is going to be important to see what place does Faridabad take in this context. Faridabad’s real estate should show a flat or negative growth curve in the short term which should become largely positive in the mid term once the market sentiments are up. Long term returns in the area could be manifold incase the infrastructural and social issues are solved by the administration. The new roadways, expressways and metro plans are sure to positively impact real estate demand in the region especially in the sectors where a metro stop is proposed. Increasing presence of the service sector is going to be the key for the region as it would bring in more lucrative work opportunities and thereby help in developing the social capital around.
Live Wire >A
stagnant market in the short term with low demand levels. Price levels may further see corrections in the short term. > Lack
of infrastructural developments and social capital will remain a key area to improve on and slow speed of delivery would hurt the region even further. With current price levels much more affordable than Gurgaon or South Delhi the area is bound to get traction in the mid and long term once connectivity improves. >
The residential areas close to industrial sectors and proposed IT parks are going to show better returns in the mid term. >
The industrial centers will continue to provide work opportunities to majority of the local population. Residential sectors around these industries are going to have a higher demand. With the government’s push on affordable housing and housing for all by 2022 focus would always remain on cheaper houses, with more reasonable land costs as compared to South Delhi or Gurgaon, Faridabad will surely have big role to play in housing this new population. The region will not see a large number of luxury projects being built.
*Any epicenter in context of this report is a location/ micro region with a definitive boundary where all amenities of livelihood are available such as a micro township.
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About Home Makers Home Makers is the real-estate research and services arm of NNA Consultancy Services and aims at helping both endusers and investors make informed decisions pertaining to their housing/ investment requirements. Unlike the current options in the market Home Makers focuses on conducting customized research for its client keeping in line with their needs and the macro real estate environment. Adding to that Home Makers offers the option of research solutions that can be availed for large projects, investment decisions or development strategies. Home Makers â&#x20AC;&#x2DC;Regional Reportsâ&#x20AC;&#x2122; are an amalgamation of standard real estate and township planning data collated from in-house research and varied sources clubbed with an insight on the social capital of the region. The reports do not only provide you an insight into historic, current and future numeric trends but also a feedback from the residents of the region on the quality of life, availability of amenities and other important aspects impacting life in the region.
The Research Brief At Home Makers we believe that it is imperative to have a holistic approach to research of any kind and that scientific data mining tools should be used to collect and collate data. With this in mind Home Makers has carefully carved its approach for research in the real estate sector which effectively amalgamates both the quantitative and qualitative aspects of the industry and its assets.
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Quality Check Mechanism Undertaking such a large study can be a challenge for any organization and error percentages could also be high in case the study is not undertaken in the right manner. In order to minimize on the possibilities of errors throughout the study cycle, check mechanisms have been placed at various steps.
Validating data from authorized governmental & non-governmental sources. A three level check system for all data before it is published. On-ground surveys of a region to understand the gap between planned and real development. Sample checks on price trends and inventory levels from regional brokers and consultants. Sample check on questionnaires filled by residents by making direct calls. Use of standard models and correlation studies to evaluate financial data. The above steps are some of the many checks that have been placed for the accuracy of the information being provided.
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The Process Flow
1
Decoding Administrative Plans
Here the team adequately studies the city/ state master plans in detail and decodes the relevant information such as historic population trends, projected capacity building, planned infrastructure such as roads, markets, petrol pumps, schools, colleges, commercial spaces, hospitals etc. and any other major planned development.
2
Phase wise studyof the region
3
Conducting a specific online/ on-ground research on the region
In order to understand the quality of infrastructure/ amenities available in the region the team systematically divides the region into sub parts for implementing a phased study of the whole region. Essentially this would mean that in a region has 100 sectors, ten critical sectors might be studied in the first phase of the study, another ten in the second phase and so on. This would essentially mean that post reaching the third or fourth phase of Home Makerâ&#x20AC;&#x2122;s study of a given region there may be a few developments that change the overall view of the region as our exposure to the region increases.
Here the team goes on ground to interact with the residents of the region (specific pockets) and understand their views on the region, its quality of life, infrastructure, connectivity, easy availability of amenities, work opportunities, safety etc. It is through this study that one is able to understand the actual delivery of the plan that had been proposed by the administration. A single phase for a region being researched on would have a sample size of 300 â&#x20AC;&#x201C; 500 responents.
4
Studying the Planned Projects / Dwelling Units in the region A thorough check from both online and on-ground sources is conducted to monitor the new/upcoming residential and infrastructure projects in the region etc.
5
Using Home Makers models
6
Collation & Representation
The team is undertaking pilots and developing standard quantitative & qualitative, SMART models, for estimating price projections, social development and safety wellness trends. Each region is plotted on these indexes so that a comparative ranking process can be implemented. This enables Home Makers to have an apple to apple comparison between two regions or zones of a territory.
Finally all the above study is collated and presented in front of the audience in an easy to understand and user friendly manner for them to make their own inferences of a given region. The use of info-graphics, visuals and quantifiable data are some of the key ingredients of a Home Makers report that helps you take with you a clear picture of a region.
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Glossary Parameters
Sources
Average Distances between two locations Google Maps Historical Price Trends
www.magicbricks.com, www.99acres.com have been referred for both new bookings and resale cases.
Current Price Trends
www.magicbricks.com, www.allcheckdeals.com have been referred for new booking rates and sample checked for prevailing prices on ground.
Existing and Estimated Population Trends
Census of India 2011, Delhi NCR MPD 2021.
No. of Metro Stations, Sub Stations
Delhi Metro Rail Corporation (DMRC) data, on ground visits and google maps.
No. of Metro Stations planned after Phase 3
DMRC phase 3
Hospitals
On ground visits and google maps.
Fire Stations
Google maps and on ground visits
Malls
On ground visits, Expedia, Ixigo and google maps
Prominent Marketplace
On ground visits, google maps.
Police Stations
Faridabad Police Data, State Government data for police and google maps
Avg Water Table
NCR Planning Board-Water report (Regional Plan 2021), Jamia Millia Ground Water Report released in 2013.
Crime Rate
Government records for Crime in India 2012
No. of Hotels
On ground visits, Expedia, Cleartrip and google maps data
Cinemas
On ground visits and google maps
Avg Air Pollution
Haryana State Pollution Control Board
Sports Complex
On ground visits and google maps.
Proposed area used for commercial spaces
MPD 2021 Zonal Master Plans, Faridabad 2021 Master plan and NCR Master Plans
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Parameters
Sources
Prominent Flyovers
On ground visits, google maps and report â&#x20AC;&#x201C; Skyscrapers in the city
No. of Schools
Directorate Of Education and Central Board for Secondary Education data.
No. of Colleges
Government Data, on-ground visits and google maps.
No. of Creches
Google maps.
Distances & Connectivity
Sample Survey of Home Makers.
Quality of Basic Amenities
Sample Survey of Home Makers.
Sense of safety & wellness
Sample Survey of Home Makers.
The following tools and models have been utilized while preparing the inferences shared in this report Indexes
Coverage
ROI Index
Industrial IIP numbers, VIX, SENSEX trends, State GDP, Inflation, REPO rates, Gold rates etc. have been considered while formulating the index.
Happiness Quotient
Sample Survey of Home Makers, Infrastructure development numbers, proximity and quality of amenities have been considered
Safety & Wellness
Sample survey of Home Makers, government data and weighted average across these parameters has been considered.
Proximity Index
On ground research, google maps for connectivity and weighted average of these parameters have been considered.
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The Report This is a periodic report prepared for the first half of the year 2014 specifically for the region of Faridabad (district). Readers should use the information in this report for guidance purposes only and should conduct their own study before taking a decision in regards to this market. NNA Consultancy Services does not take responsibility of the accuracy of the data in the report and that which has been collated from third party sources.
Disclaimers The market data and information contained herein (â&#x20AC;&#x153;Informationâ&#x20AC;?) is the product or service of multiple parties that may or may not be affiliated to NNA Consultancy Services Pvt. Ltd. (NCS). None of the Information represents the opinion of, counsel from, recommendation or endorsement by NCS, or its Affiliates, Officers, Employees or Agents. The properties/projects that are indicated/ mentioned herein above have been selected randomly for the purpose of this report only and that such mention/indication of the same does not, in anyway whatsoever indicate any preference or promotion by NCS of the same. NCS does not intend to suggest or promote any specific area, builder, developer or construction company that may have been mentioned / indicated in this report. You may not use the Information for any unlawful purpose or any purpose not expressly permitted hereby. Reproduction of the Information in any form is prohibited. Users are requested to use the Information at their sole risk. NCS or its Affiliates, Officers, Employees or Agents shall not be liable and expressly disclaim liability for any error or omission in the content of the Information, or for any actions taken by any one directly or indirectly, in reliance thereon. The Information is not guaranteed to be errorfree, or to be relied upon for investment purposes, and NCS or its Affiliates, Officers, Employees or Agents make no representation or warranty as to the accuracy, truth, adequacy, timeliness or completeness, fitness for purpose, title, non infringement of third party rights or continued availability of the Information.
No Warranty In no event shall NCS or its Affiliates, officers, employees or agents be liable for loss or damage of any kind whatsoever (including, without limitation, any special, consequential, incidental or indirect damages, or damages for loss of profits, business interruption, and any and all forms of loss or damage) to any one under any circumstances. All queries can be directed towards Divyanshu Nagpal Director, NNA Consultancy Services Pvt. Ltd +91-9818300327 divyanshunagpal@nnaindia.com
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