South Delhi Zone F by Home Makers

SEPT 2014 | Vol. 01

NUMBERS BEHIND ZONE F South Delhi 1

The proposed population of South Delhi for the year 1981 was 8,27,125. As per the Census 2011 records this population has increased to 27,31,929.

Top of the line, super-luxury accommodations such as big plotted houses, and large sized builder floors in the prime locations of Zone F should continue to demand a premium and should show good returns in the medium and long term.

CONTENTS About the Region ...........................................................

Real Estate Numbers Administrative snapshot ....................................................

The ROI Index (Changing price trends) ..............................

Prominent Projects ............................................................

Quality of Life Index The Happiness Quotient ...................................................

The Safety & Wellness Index .............................................

Social factors to consider ..................................................

The Proximity Chart ..........................................................

Game Changers .............................................................

The Outlook ....................................................................

Our Research Approach ...............................................

Glossary .........................................................................

About The Region Located on the South side of Delhi, Zone F, also known as South Delhi 1, counts for some of the most popular heritage destinations in the region including the Qutab Minar Complex, Tuglakabad Fort, Hauz Khas, Chirag Delhi, Siri Fort, popular markets such as South Extension, Greater Kailash, Lajpat Nagar, Saket, Hauz Khas Village etc. Zone F also boasts of traditional commercial complexes such as Jasola, Nehru Place, Bhikaji Kama Place, Saket, Okhla Industrial Area, Mohan Corporative etc. Zone F is known for its good balance of residential areas, retail and commercial spaces and is a well established zone of Delhi NCR. Due to obvious reasons a strong history and well balanced infrastructure with good roads, connectivity and ample flyovers it is one of the most expensive zones in the National Capital Region (NCR).

Happiness Quotient Our Happiness quotient suggests, that residents of South Delhi 1 are relatively happy with the region and they score on this matrix as ‘Moderate’. With new developments taking place in neighboring regions especially in Gurgaon this matrix has taken a hit in the recent past. Some of the critical parameters impacting this percentile are – limited quality high-tech commercial spaces and work opportunities in the region. Though with more and more residents of South Delhi traveling to other zones for work opportunities it is making an impact on the strength of this matrix and affecting the long term view of the industry on this zone. Read more about the views of the residents of Zone F and what makes them happy staying here on page 14.

This report would delve on various aspects of Zone F, its past trends, administrative plans for the future, the level of happiness of their residents in its current capacity and future projections.

Zone F Statistics

17,17,000

26.53 %

11,958

Vasant Kunj, New Friends Colony, Greater Kailash, Haus Khas etc.

Population as per 2001 Census

Land size in Hectares

11,060

Population Density Per Sq. Km. (Entire South Delhi data)

Planned Recreational Spaces

Major Residential Areas

AIMS, Nehru Place, Jamia Millia Islamia, Bhikaji Kama, JNU etc. Important Locations

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ROI Index Looking at the investor’s outlook for the region the real estate markets in Zone F have been falling for past many months due to a slowdown in the overall market, reducing IIP numbers and other macro economic factors that have affected the region as a whole. Traditionally Zone F has been a place for the elite and predominantly an end user market. With high occupancy levels and limited inventory available this has always been a seller’s market. Though affected by the macro economic sentiments of the industry Zone F has always been a secure bet for real estate transactions. With redevelopment plans taking shape at various locations of this zone more inventory is being generated and thus creating more takers for real estate. The ROI Index shows that the investment opportunity in medium and long term as luke warm and warm respectively, with a short term rating of cold – luke warm. Read more about the future of Gurgaon’s real estate on page 10.

Proximity Index Well connected to Central Delhi & West Delhi and the micro cities of Gurgaon, Noida and Faridabad. With quality roads, flyovers, public transport and leading social infrastructure with schools, colleges, malls, hospitals etc. Zone F scores highly in terms of connectivity. In fact it is one of the major reasons for the zone’s strong real estate performance in the last few decades. Read more about Zone F’s proximity and its significance in the region’s growth on page 18.

53.67%

Safety & Wellness Index With a rich green environment, availability of all the required social infrastructure, relatively clean air, Zone F is one of the high scorers on this index in the NCR region. Read more about the Safety & Wellness Index on page 16.

Quick Facts*

A rich heritage, prosperous population and availability of all amenities is a highlight.

Limited high-tech commercial areas is a limitation with a large section of the population traveling to Gurgaon and Noida for work opportunities.

3 4

With limited inventory levels and a high demand for quality housing price trends have been robust though transactions have been dependent on macro economic factors. Redevelopment plans should have an impact in the near future with planned development set to accommodate new population of over 1.2 lakhs by 2021 from the 2011 levels.

Source: Zone F Zonal Plan MPD 2021, Census 2011 * Zone F is a part of South Delhi region, which is approximately 25,000 hectares in size, and is collectively represented in the Census 2011 data.

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 Projects’ section lines up a few of the talked about developments in the region.

11,958 Total Area (In Hectares)

146

Air Pollution (PM10 levels)

Moderate: 65-100

Zone F or popularly known as South Delhi- 1 is mapped on the banks of the Yamuna River, with Central Delhi, Faridabad, Noida and Gurgaon in close proximity. Historically known for its monuments, green open spaces, quality infrastructure and connectivity, Zone F has been inhabited by the crem de la crem of the city from its inception. Barring the properties in the Lutyen’s zone South Delhi boasts of some of the highest land rates in the national capital. With a land size of over 11,000 hectares about 1/3rd of the size of the Gurgaon district the zone had a population of over 18 lakhs as per 2011 Census. Even though there are popular commercial spaces in the zone including Bhikaji Kama Place, Nehru Place, Saket, Jasola etc. there is a shortage of new, state of the art commercial infrastructure with most of the establishments old and outdated. Implementation of the redevelopment plan is the need of the hour. A positive for Zone F is the availability of public transport in the region whether it be the bus transport, public conveniences such as taxis & auto rickshaws, all are a plenty in the region. To top this up the metro connectivity also scores highly in the region with as many as 34 metro stations (including phase 3 plans). In fact the connectivity to the

1.91%

4.29%

35.43%

32.94 Mtrs.

Planned Commercial Use of Land

Planned Residential Use of Land

Planned Industrial Use of Land

Average Depth at which water is available NCR Average: 11.43 -12.49m

(Over Exposed)

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Average Price Trends of the South Delhi metros has eased lives for many in this zone and added to the demand for the region both in terms of purchase and especially rentals. Quality roads, highway connectivity, ample flyovers increasing the pace of commute etc. help Zone F score highly. From the table we would like to bring to your notice that the prevailing water tables in South Delhi (Including Zone F) is one of the lowest in the NCR region, just behind Alwar, at 32.94 mtrs. As per the ‘Ground Water Information Systems, Ministry of Water Resources’ data South Delhi, that also includes Zone F, had a rise in its water levels by 4.1 meters, in the period between 2007 to 2011, which is a positive sign for the region. It is important to keep in mind that with better connectivity of water systems, limited requirement for irrigation and industrial use the pressure on South Delhi’s water levels is relatively lesser compared to other regions which are still under the process of development.

Plots (In Sq. Yards) Max 5,96,187

Metro Stations Planned

( Including Planned in Phase 3 )

161

Prominent Hotels

Min 91,917

Apartments (In Sq. Ft.) Max 66,243

Zone F has always been known for its social capital and it is this reality in addition to its connectivity that has made it the first choice for people in NCR. Quality schools, prominent colleges, presence of luxury hotels and clubs with a relatively cleaner environment has made Zone F the place to be in.

Avg. 2,98,512

Avg. 33,168

Min 10,213

Population Graph 17,17,000 in the year 2001

18,46,000* in the year 2011

19,75,000 estimated in the year 2021

115

Prominent Schools

Prominent Colleges

Zone F has traditionally been home to the most affluent in NCR. Its locations such as Greater Kailash, New Friends Colony, Vasant Kunj, Hauz Khas have been the first choice of real estate for most. Due to limited supply, with almost the whole of the zone developed, real estate prices in South Delhi should always remain high as compared to most of the other regions of NCR, at least for the next two decades. It would be pivotal to keep an eye on the re-development plan and its execution for this region as with new land use plans, increase in the number of floors allowed for construction and proposed regularization of irregular colonies the landscape of Zone F might go through rapid change and development.

Source: NCR Planning Board- Water report (Regional Plan, 2021), Zone F Zonal Plan MPD 2021, Census 2011, DMRC Phase 3 Plan, Directorate of Education & Central Board for Secondary Education data, UGC data, relevant government data, www.expedia.com, www.cleartrip.com, www.magicbricks.com, www.99acres.com, Air Pollution: Air Quality Index (AQI) data for the average PM 2.5 levels from 13.09.14 to 19.09.14

ROI Index

The ROI Index

South Delhi 1 has always been known for its limited supply; with the zone well developed there are only a handful of properties that are exchanging hands. With the re-development plans for the zone there are going to be a few areas that would go through a revamp and would thereby add new inventory to the zone. With FAR levels increased by 2.5 meters by the authorities this will give an opportunity to many to add an additional floor to their properties thereby increasing the floor space available in the region. With real estate prices sky scraping, independent houses and villas have got converted into builder floors in some of the posh colonies of this zone, to in-cash on the high prices. Some of these newer developments are easy to identify in Saket, Greater Kailash, Malviya Nagar and the surrounding areas. This section of the report takes you through the ups and downs of the South Delhi 1 (also known as Zone F) real estate market. South Delhi 1 has been a region for stable growth for the past many decades. Though with a volatile market, cash strapped economy in the last few years the South Delhi 1 market, as others in the country, has seen a serious dip in prices. The price trends in this region have had a high correlation with the economy its upswings and downswings. With the investor audience largely interested in the upcoming regions of NCR, Zone F would attract relatively lesser attention for investment purposes. This should help the zone avoid sporadic high return periods in the short or the medium term. The trend should specially be true for the lower and mid segment housing

Signifies the estimated trends of real estate prices.

Cold-Luke Warm In Short Term (< 3 Years)

Luke Warm In Mid Term (3-7 Years)

Warm In Long Term ( > 7 Years)

High Return Period Signifies the percentage of real estate which has shown better returns

57%

15%

26%

In Short Term (< 3 Years)

In Mid Term (3-7 Years)

In Long Term (> 7 Years)

* Source: The figures have been taken as a projection keeping in mind the trend graph of the last 7 year period.

Price Trends of Major Sectors 2014 2013 2012 2011 2010 2009

19,918

14,534

23,412

30,363

20,847

21,171

15,421

22,053

33,476

20,649

21,505

16,061

34,124

21,978

17,333

12,075

22,953

25,820

15,452

18,717 16,025

11,486 10,601

12,709 12,406

10,284 9,515

Greater Kailash

Vasant Kunj

15,471 12,851 15,941

New Friends Defence Colony Lajpat Nagar Colony

24,312

12,589

23,795

15,576

25,903

11,941

17,389

9,644

12,127 12,006

9,349 9,201

Hauz Khas

Malviya Nagar

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Economical for End User of the region. In the case of luxury housing due to limited inventory in South Delhi 1 there will always be a premium attached to this category. In the last couple of years the real estate market in this zone has gone through a correction, with prices at many locations lower or at the same level as compared to previous year. 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.

Signifies the percentage of real estate which would have been more economical on rent or as a purchase.

62% vs Rent

38%

Purchase

Insights

The â&#x20AC;&#x2DC;ROI Indexâ&#x20AC;&#x2122; graph for Zone F shows limited scope for high appreciation levels in the short term due to the recent drop in the real estate prices in the last one year. The market should take time for normalization and recovery. With historically high price trends in the zone a sporadic growth in price trends is unlikely. A standard appreciation trend in line with the economic developments can be expected in the mid term.

Low levels of inventory as no major new development is taking place.

Some section of Zone F also falls under unauthorized colonies and village areas. Here real estate appreciation has been higher than the authorized colonies in the last three years. At the same time price appreciations of locations in close proximity to Zone F should be expected in the mid and long term. Locations of Noida, Gurgaon and Faridabad which are closest to Zone F should see higher returns.

Demand for rental properties in the region have been traditionally high though the availability of rental properties is relatively low in the zone.

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.

Price VS Growth

With high property prices in the zone borrowing money for real-estate purchases is a common practice.

Connectivity through the metro and other public conveyances is strong in the region. Well connected to all the three major micro-cities of NCR i.e. Gurgaon, Noida and Faridabad.

Key Factors to Consider (Price per Sq. Ft.)

2009

Expectations of IIP numbers growing in the near term.

INR 33168

12%

The nature of property being purchased is in the mid segment or luxury segment.

INR 29656

16%

Plots have shown better returns in Zone F.

INR 25618

INR 23926.5

49%

Extremely well connected region though congested at locations.

INR 16008

-10%

INR 17824

*The figure has been taken as a projection keeping in mind the trend graph of a 7 year period.

Highest return on investment has been achieved in South Delhi 1 in the long term with a spurt in early 2012.

Prominent Locations With the development of Zone F almost at saturation levels there are only a handful of substantial new developments that have come up or are coming up in the near future. Some of the areas where these developments are taking place are provided below; The table highlights some of the relatively new/ upcoming localities and projects in South Delhi1. The list is not exhaustive by itself and does not mention the projects in any order of preference. Home Makers does not, at any level, promote or holds preference

In order to cover the vast territory of South Delhi1 and its developments we have included some of the upcoming localities and initiatives of Delhi Development Authority (DDA) and mid segment housing units in the region. The premium segment units of the old and well established colonies have not been added to the above list due to low transaction levels.

King Court

DDA Appartments

Queen Court

Estimated Completion: 2015

Estimated Completion: Complete

Estimated Completion: 2014

Developer: DLF Greater Kailash

Developer: DDA Sarita Vihar

Developer: DLF Greater Kailash

Ganga Appartments

Yamuna Appartments

Estimated Completion: 2014

Developer: DDA Vasant Kunj

for any of the mentioned projects and this list of projects has been added for information only.

Developer: DDA Vasant Kunj

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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.

Independent Builder Floors

Developer: Private Developers Estimated Completion: Complete

Malviya Nagar

DDA Housing Scheme Developer: DDA

Estimated Completion: 2016

Vasant Kunj

DDA Housing Scheme

Independent Builder Floors

Estimated Completion: 2016

Developer: DDA Jasola

Developer: Arya Group Chitranjan Park

SOURCES: www.magicbricks.com, www.99acres.com have been referred for both new bookings and resale cases.

Quality Of Life About the Section ‘Quality of Life’ 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

Happiness Quotient (HQ) (Higher percentages are considered better)

Traditionally strong with inhabitation of the zone as old as independence, Zone F has been one of the most developed zones of NCR. With some of the most popular market places, ample opportunities for recreational activities and life after work engagements Zone F is 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 end-user. 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.

dream address for many. The team at Home Makers started with the task to understand the ‘Happiness Levels’ of people in Zone F, what the issues prevalent are and what makes Zone F the location of choice for many. The two most critical factors that had a positive impact on this zone’s score on the HQ were the availability of the basic amenities such as electricity, water supply, quality infrastructure, market places in close proximity, cleaner surroundings in addition to modern malls, shopping complexes etc. and feeling of security in comparison to the rest of Delhi NCR. A distinct finding in our study was the shortage of quality commercial spaces in this region resulting in lack of

Scores:

67%

Amenities Available

68%

Feeling of Security

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working opportunities in close proximity. High scores in availability of amenities, prevailing security levels, adequate recreational facilities in the region give Zone F a balanced score. It is important to keep in mind the diverse, geographic spread of Zone F with both old traditionally well settled areas and some relatively new sections. Here areas such as R K Puram, South Extension, Malviya Nagar scored above the zonal HQ levels while Sarita Vihar scored well below the average hence impacting the overall findings of this study. Even though Zone F with majority of South Delhi covered under its territory is one of the most developed regions of the NCR there are still many aspects that need to be worked on for a holistic / balanced growth of the region. There is a shortage of quality commercial spaces with most of the spaces available being old and outdated. There is a large amount of population that is traveling more than 15kms away for work. Additionally safety issues have been raised in this region too like other parts of Delhi and more work can be done by the administration in this regard. Close proximity to both Gurgaon and Noida and the fast development of these regions has been a big boom for enhancing the happiness quotient of this zone.

54.50%

Proximity to Work

Highlights Has lack of commercial spaces or work opportunities in close proximity with most of the commercial infrastructure old and outdated. Has good levels of safety in the region as compared to rest of Delhi NCR. Scores well with all major amenities available and good quality of infrastructure.

61.80%

Availability of Recreation Facilities 15

53.67%

Safety & Wellness Index (Higher percentages are considered better)

A green environment, relatively fresher air good connectivity to police stations and hospitals give Zone F one of the highest scores on the SWI.

Though at the same time with recent rise in crime against women this zone too has its share of issues which it can further improve upon.

The region has some of the most famous medical facilities including A.I.I.M.S. Apollo Hospital, Safdarjung Hospital, Escorts, Fortis, Holy Family etc. These facilities do not only cater to the population of Zone F but also caters to population from other parts of the city, country and across the globe.

The population was happy with the quality of air and noise pollution levels. These have been controlled to a large extent with adequate measures for green cover and planning. There were a few locations in the zone such as parts of Malviya Nagar and R K Puram where the residents were not happy with the efforts of the administration. The SWI shows an accurate picture of the region and appropriately shares the views of its residents. The overall rating of Zone F in the SWI is higher than most other regions of NCR and is well balanced with almost all aspects well represented.

Zone Fâ&#x20AC;&#x2122;s scores in regards to number of FIRs in the region is less than the NCR average. It is important to keep in mind that with better connectivity to police stations a high percentage of crimes get registered with the police and hence this score should be interpreted accordingly. Asking residents about safety levels in Zone F the survey gave an above average score to the zone in regards to how safe do people feel in this region.

Yes, there is headroom for the zone to move forward though as of now, with the current scores it is one of the best zones to be living in.

Scores

65.41%

84.29%

37.01%

31.98 %

Air Pollution

Crimes Under IPC

Connectivity to Police Stations

Connectivity to Hospitals

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Interesting Facts The statments show the top responses and their respective percentages

Zone F scores highly on providing a quality environment with a prospering population and connectivity to all amenities of life especially market places. Market Places

33.33.%

Green Environment & Friendly People

55.15%

Connectivity

11.52%

Zone F has good supply of electricity as more than 90% of the respondents faced less than 6hrs of power cuts, over 65% faced less than 1 hr of cuts in a week. Less than 1 hr

67.71%

2 - 6 hrs

24.22%

More than 6 hrs

8.07%

Over 50% of the respondents had their work areas more than 8 kms away from their residence. Under 3 kms

26.76%

3 - 8 kms

16.90%

8 - 15 kms

21.13%

More than 15 kms

35.21 %

Cleanliness is a concern for Zone F with Security being a close second. Cleanliness

39.82%

Roads & Infrastructure

28.32%

Safety

31.86%

Social Factors to Consider A quick survey undertaken by the Home Makers team in the region showed some eye opening facts that should surely be considered while making a decision on whether or not stay or invest here. The above results are part of a sample survey conducted in Zone F in the regions of Greater Kailash, Vasant Kunj, Sarita Vihar, Malviya Nagar and South Extension. 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.

Highlights Low crime rate levels as compared to Delhi NCR averages but higher than Zone A, B and C. With more number of police stations and a smaller region to cover higher percentage of crimes are also being recorded in the zone. Good number of hospitals, police stations in close proximity and cleaner air make Zone F a location of choice for many.

Proximity Index The given chart highlights Zone Fâ&#x20AC;&#x2122;s 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 a critical aspect for development or appreciation of any region is its location and proximity to all important parts of the city and amenities/ services.

Proximity Chart

64%

Proximity Index

Connectivity The below chart highlights Zone Fâ&#x20AC;&#x2122;s 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.

25%

Critical Transportation Points

25%

Prominent Junctions

50%

Amenities & Public Conveniences

57%

Distance from work place score

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Closest

farthest

90%

70%

Avg. distance from nearest

Metro station

Avg. distance from

Outer Ring Road

Avg. distance from

Ring Road

50%

Avg. distance from nearest

Railway Station

Avg. distance from

NH-8

161

30%

10%

Avg. Distance from

Avg. distance from nearest ISBT

Airport

Kashmere Gate

Distance from

Kundli Manesar Faridabad Noida Palwal Expressway Gurgaon Expressway

16 16 14

Hotels

Hospitals

Police Stations

Malls

83%

Market Connectivity Score

Game Changers Will Zone F gain momentum to become a preferred choice for real estate investors or will the limited supply keep the zone under a low key? It is actually difficult to see Zone F (South Delhi 1) to invite high investor attention as compared to its neighboring regions essentially due to the sky rocketed prices and limited supply. A few of the factors that could impact the market and should be kept in mind in case you are investing in this area are;

Key Factors

Interest Rates

The ROI Index study for Zone F showed a high positive correlation with the bank’s lending rates. In case interest rates see a further fall to encourage liquidity in the markets it should have a positive impact on demand levels.

Sensex

Even though the equity and real estate markets compete with each other as investment options they both signify the sentiments of the market. A positive movement of the SENSEX could lead to positive news in the real estate space.

Low Inventory Levels

The key to Zone F’s real estate story in the recent years has been the lack of inventory available which has allowed sellers to demand higher prices. This reality would continue to define real estate in this zone in the future, especially for plotted houses in premium locations of the zone.

Increased FAR levels

Connectivity of the Metro Rail

A Growing Economy

Lack of Commercial Spaces

With economic sentiments in the country changing more liquidity is set to flush into the market. Many transactions that were put on hold may see the light of day with this positive ness around. The booming economy may bring many NRIs back to the country, or enhance the EXPAT population who would have the deep pockets to look at real estate in this zone.

A majority of the employed working audience is still traveling a long way for work. The relatively newer developments of Jasola, Saket or Vasant Kunj could change this dynamic with their new commercial zones.

The Fast Growing Suburbs

Upcoming Areas of Zone F

As per the 2021 Master Plan of Delhi (MPD 2021) FAR levels have been increased to a height of 17.5 mtrs. would have a positive impact on available floor space which essentially should add to the supply levels.

Growth of Zone F is equally dependent on the speed and quality at which the residential development of Gurgaon and Noida takes place. With ample land available in these districts and modern constructions being offered at lesser prices. Fast development of social infrastructure in Gurgaon and Noida would challenge the demand trends of Zone F.

Macro Factors With a High Co-relation to Zone F’s Growth

One of the big positives for Zone F has been its connectivity through quality roads, public conveyances and the metro rail. With the metro connectivity reaching locations like Sarita Vihar, New Friends Colony and other areas, real estate prices are sure to react.

Locations like Vasant Kunj, Sarita Vihar and Lajpat Nagar are relatively less expensive as compared to other locations of the zone. These locations could see a higher growth trend in the short and medium term.

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The Outlook Zone Fâ&#x20AC;&#x2122;s real estate sector has seen a fall in its prices, almost across all areas, in the last few quarters with challenging market conditions and low transaction levels. With new developments and employment opportunities growing in neighboring regions such as Gurgaon and Noida, and less expensive residential options being available, majority of the fresh population of the national capital has looked at settling down in these neighborhoods. It is evident why these regions have also attracted the eyes of the investor. At the same time Zone F (South Delhi- 1), with a rich history, affluent population and quality infrastructure would continue to remain the location of choice for many in and outside Delhi. It is hence that the zone should expect a balanced growth cycle in the long term. Will Zone F see a major overhaul in the long term? Home Makers would keep a close eye on these developments. Already burdened with a large population only a limited growth in numbers is expected in this zone as per the 2021 Master Plan. In the short term with a recovering economy, current inflation levels and stagnant prices, renting a house would remain a more economical proposition as compared to buying one for the end users. With great connectivity, availability of all amenities, an affluent population Zone F would continue to attract the top brass of the society from an end-use perspective at least in the medium term. Locations within this zone which have new / upcoming commercial developments or have been priced lower than the zonal average should see higher returns in the medium term.

Zone Fâ&#x20AC;&#x2122;s stable real estate growth would heavily depend on the nationâ&#x20AC;&#x2122;s economic scenarios and investor sentiments. It is evident that the zone will attract limited investor attention as compared to the other fast developing suburbs of NCR, which should also make it less volatile. At the same time residential real estate spaces in Zone F should continue to remain some of the most expensive real estate options in the National Capital in the long term and an address of choice for the elite.

Live Wire A sluggish market in the short term with limited demand and transaction levels. Price levels may further see corrections in the short term and slow speed of growth. Infrastructural developments such as the metro rail, new office / commercial spaces, new road connections etc. should show quick reactions in price levels in select locations. Expectation of normalization of growth in the medium & long term with a close eye on the economic scenarios of the country. Due to limited inventory levels, lesser transactions the zone will not receive as much attention from the investor audience as compared to Gurgaon & Noida. Top of the line, super-luxury accommodations such as big plotted houses, and large sized builder floors in the prime locations of Zone F should continue to demand a premium and should show good returns in the medium and long term.

*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.

About Home Makers

Home Makers is the real-estate research and services arm of NNA Consultancy Services and aims at helping both end-users 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 ‘Regional Reports’ 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 Process Flow

Decoding Administrative Plans

Phase wise study of the region

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.

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 Maker’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.

Conducting a specific online/ on-ground research on the region

Studying the Planned Projects / Dwelling Units in the region

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’s been proposed by the administration. A single phase for a region being researched on would have a sample size of 300–500 respondents.

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.

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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.

Quality Check Machenism 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 and nongovernmental sources. A three level check system for all data before it is published.

Using Home Makers models

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.

Collation & Representation

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 infographics, 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.

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.

Glossary Parameters

Sources

Average Distances between two locations

Google Maps

Existing and estimated Population trends

Census of India, Delhi NCR MPD 2021- Zone F Plan.

No. of Metro stations * substations

Delhi Metro Rail Corporation data, on ground visits and google maps.

No. of Metro Stations planned after Phase 3 DMRC phase 3 & Rapid Metro plans. Hospitals

On ground visits and google maps.

Fire Stations

Delhi NCR MPD 2021- Zonal Master Plans, google maps and on ground visits.

Malls

On ground visits, Expedia; Ixigo and google maps.

Prominent Marketplace

On ground visits, google maps.

Police Stations

Delhi Government for New Delhi police data, State Government data for police and google maps.

Avg Water Table

NCR Planning Board-Water report 2011.

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

www.aqicn.com Latest Air Quality Data

Sports Complex

On ground visits and google maps.

Proposed area used for commercial spaces MPD 2021 Zonal Master Plans. 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

Only UGC Approved Government colleges have been covered.

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Parameters

Sources

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 have been considered.

Proximity Index

On ground research, google maps for connectivity and weighted average of these parameters have been considered.

The Report This is a periodic report prepared for the first half of the year 2014 specifically for the region of Zone F, Delhi NCT. 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.

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 M: +91 - 9818300327 E: divyanshunagpal@nnaindia.com

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 error-free, 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.

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