Optimally using land's potential through public housing redevelopment

HOUSING PROJECT STUDIO

|PublicHousingRedevelopment

GHBSociety,Chandkheda PUH21178

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PUBLICHOUSINGREDEVELOPMENT

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PUBLICHOUSINGREDEVELOPMENT

1. Table1 ListofSelectedSites

2. Table2 SiteScoreandPreferredSites

3. Table3 UpcomingInfrastructureProjects 4. Table4 CharacteristicsofMajorMarkets 5. Table5 LocationsWithinDifferentMarkets 6. Table6 MicroMarketHealth 7. Table7 PrevailingRegulationsontheSubjectSite 8. Table8 SocietiesMapping 9. Table9 StudyProjectsforMicroMarketAnalysis 10. Table10 ProjectwiseProductMix 11. Table11 PlotAreaCalculation 12. Table12 Iterations 13. Table13 ProjectPhasing 14. Table14 CashInflowandOutFlow 15. Table15 LimitedLiablePartnership

10 11 16 17 18 20 24 27 33 33 41 41 47 51 53

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PUBLICHOUSINGREDEVELOPMENT

1. Figure1 MethodologyofStudio

9 10 11 11 11 12 12 15 15 15 16 16 17 17 18 18 18 19 19 19 23 23 24 24 25 25 26 27 27 27 27 27 27 27 28 28 28 31 31 31 31 32 32 33 34 34 34 34 35 35 35 39 43 43 43 44 45 45 47 48 48 48 51 52 52 53 53

|INTRODUCTION

1. StudioBrief

CitiesacrossIndiaaredeveloping,andthedevelopingcitiesaregrapplingwithvaryingdegreesofhousing unaffordabilityasperthespecificationsoflocallandandlabormarket.Policymakingandplanningensures accesstodecentaffordablehousingfordifferentincomegroupswhichrequiresamulti prongedapproach. Using applied knowledge about evidence based policies, and the local real estate market to formulate housingprojectlifecycleforrangeofhousingsubmarketsandsupplymechanisms.

AIM

OBJECTIVE

The studio focused on developing students’ exposure to the dynamic housing & real estate market and analyzing and proposing optimal development of land parcel (brownfield / greenfield) considering underlying site context, applicable legal norms, existing macro and microrealestatemarketscenario.

Toselectapotentialsiteforrealestatedevelopmentthroughvariousassessmentparameters andcarryoutmacroandmicromarkettoformulateviableproposal.

Developingacompleteprojectproposalwithanimplementableprojectcyclethroughiterative processofproductmix,inflowandoutflowassumptions

Studio

Apart from this, throughout the studio, extensive amount of guest lectures on the relevant topic from professorsandprofessionalwhoareworkinginandaroundthesectorhelpedtounderstandthecomplexity arealestateprojecthasandwaystotackletheissues. Sitevisitsofsmall-scaleproject, mid-scaleproject,and redevelopment project gave handon experience about thepracticethatareperformedinthesectorandgavearealitychecktounderstandthehurdlesand howtomitigatethem.

1. Mr.AnushravBhatt

SessiononRealEstate developmentincompliancewith GDCR

2. Mr.Abhijit Talkedabouttheinvestorspointof view/criterionwhileselecting thesitebeforeinvesting

3. Mrs.AnalVaishnav Casestudyonmasterplan developmentandrealestate development

4. Mr.DhavalPrasanna SessiononMacroand microanalysisonareal estateprojectmanagement

1. Mr.MiteshBhuva Developer’sjourneyonareal estateproject frominceptionto conclusionofaproject

3. Mr.AnandPatel CasestudyonGujaratHousing Board publichousing redevelopment

DelphiMethod

After attaining the weightage of each parameter, scale of 1 to 5 was assigned to each site for each parameter according to the site condition and relevance. Final score of the site is calculated by multiplyingtheweightagegiventoeachparameter andscaleassignedtoeachparameterforeachsite. As each parameter has 100 weightage and maximum scale is 5, each parameter has score of 500,totalingit2500forall5parameters. Selected sites has various concerns that affected thescoreofsuchsites.

LandPotentialAnalysis

Figure3 UnderstandingofDelphiMethod Source.Author’sInterpretation

Location Muthiya

Area 65Ha

Development Greenfield

TPScheme MuthiyaHanspura75 Amalgamation Yes

Ownership Private+Public LandUse R1

OverlayZone TOD Comments Landtobebought SiteViable

Location Chandkheda

Area 157Ha

Development Brownfield

TPScheme Non TPArea Division Yes Ownership Public LandUse R1 OverlayZone TOD Comments 40%LandDeduction SiteViable

After land potential analysis, top 7 sites are shortlisted for development, out of which, 3 sites are brownfield, and 4 sites are greenfield Dharamnagar site (#8), which has the highest score, and is a brownfielddevelopmentsite(co opsociety),isnotviable,asTProadsarecuttingthroughthesite.Same, Jantanagar (#2) which is a brownfield development site (co op society), and Muthiya (#14) greenfied development site has TP roads cutting through, making them un viable for development as per studio guidelines.Otherwise,allremaining4sitesareviablefordevelopments.

Figure6 Site#12Muthiya

Source.GoogleEarthImagery(RetrievedinAugust2022);PrimarySurvey

Figure7 Site#3Chandkheda

Source.GoogleEarthImagery(RetrievedinAugust2022);PrimarySurvey

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2|CITYOVERVIEW

1. AhmedabadCity

Introduction

Ahmedabad, with a population of 5.8 million in the municipal area and 6.3 million in the urban agglomeration region in 2011, is India’s seventh biggest metropolis and the state's largest city. Ahmedabad has grown as a key economic and industrialcenterinIndia.ItisIndia'ssecond largest cotton producer, earning it the nickname "Manchester of India.“ . The eastern and western halves of the city are separated by the river Sabarmati. The city is devoid of any significant physicalfeaturesotherfromtheriver.

Ahmedabad is served by seven main highways and one expressway. The National Highway No. 8, which connects Delhi and Mumbai, goes through Ahmedabad. National Expressway 1 connects the city to Vadodara. State highways link it to Bhavnagar, Nadiad, Mehsana, Surendranagar, Bhuj, Rajkot, and Gandhinagar. The newly expanded corridor connecting Ahmedabad and Pune via four additional metropolitancities(Vadodara,Surat,Mumbai,andPune)hasimprovedtheefficiencyofroadtrafficalong thiscorridor.Alloftheseelementshavecontributedtotheregion'saxialexpansion.Ahmedabadisalsowell connected with major domestic and international cities by airway due to the presence of domestic and internationalairterminals

In order to run and operate BRTS buses, Ahmedabad Municipal Corporation established a "Special Purpose Vehicle" named Ahmedabad Janmarg Ltd. Ahmedabad Janmarg Ltd is a 100% subsidiary of Ahmedabad Municipal Corporation and is incorporated under the Companies Act of 1956.Inordertodeliverquicker,moredependable, environmentally sustainable, and technologically sophisticated public transportation, Ahmedabad Janmarg Ltd is devoted to operating and running BRTSservicesforAhmedabadresidents.According to the Memorandum of Agreement, the Municipal Commissioner is the Chairman of the Ahmedabad Janmarg Ltd, and the following are the company's Board of Directors. Ahmedabad Janmarg Ltd is in chargeofoperatingbuses,determiningfares,

maintainingbuslanes,andmaintaining busshelters.

alongtheBRTSrouteandoffersPay&Parkservicesto

Figure8 SnapshotofAhmedabadCity Source.Census2011

AhmedabadInfrastructure

Figure9 MapofAhmedabadCity Source.mapsofindia

Figure10 AhmedabadCityBRTSMap Source.wikimediacommons

Ahmedabad JanmargLtdalso hasadvertising rights

thecitizensofAhmedabadCity.

TheAhmedabad GandhinagarMetrotrainprojectis being marketed with the goal of delivering safe, rapid, and environmentally friendly transportation services to the people at cheap costs while also decreasingtrafficcongestion.Themetrorailproject isenhancingintegrationwithAMTS,BRTS,railways, andotherpublictransportationsystems.Themetro is mostly elevated, with ballast free tracks, air conditioned coaches, GPS based rail tracking system, train destination signs, and stations with support infrastructure such as automated fare collecting,parkingfacilities,andsoon.NorthSouth Corridor is startingfrom Motera stadium to APMC whereasEastWestCorridorisstartingfromThaltej Gam to Vastral Gam. Phase I extension, Phase II, Phase IIIwillincludeconnectingSardarVallabhbhai Patel International Airport to the Metro network throughMotera.TheservicestoGandhinagar,GIFT City, etc. will be extended from Motera towards North. Also, other parts of the city that have been left as of now e.g. Civil Hospital, etc. will be connected. Most probably, if commissioned, the proposedFedara International Airport,DholeraSIR, etc will be connected to metro too, which will be after10yearsfromnow.

Ahmedabad, known as the "Manchester of the East," has historically been a hub for industry. The city has primarily relied on the textile, chemical, pharmaceutical, gem, and jewelry sectors for its economic growth. An emerging automobile hub is Ahmedabad.

Projects Description

DMIC

WorkontheAhmedabad Dholera stretch,thelargestnodeontheDMIC, hasbegun.

SIR AhmedabadisclosetotheMandal BehcarajiSIRandDholeraSIR.

GMRCL

GIFTCity

Commencingmetrorailconnecting AhmedabadandGandhinagar.

Theinternationalfinancialcentre comingupinGandhinagarisvery closefromAhmedabad

MAHSR

Goingforward,Ahmedabadwillhave bullettrainconnectivitywithMumbai.

Apart from this, DMIC Delhi Mumbai Industrial Corridor, and DFC Dedicated Freight Corridor which connectstoDelhiandMumbai,crossthroughAhmedabad,makingAhmedabadavitalcityforindustrialand logistic development. These will support the GIDC estates in the city such as Naroda, Odhav, Vatva, Sanand,Kathwada.

Figure11 AhmedabadCity GandhinagarCityMetroRailMap Source.Gujaratmetrorail

GIFTCity

BRTS&MetroNetwork

Figure12 EconomicandInfrastructureProjectsinAhmedabad Source.DevelopmentPlanStudioS2022,CEPTUniversity

Table3 UpcomingInfrastructureProjects

Source.KnightFrankreport:Gujarat’sshiningjewels

2. AhmedabadCity–RealEstateMarket

The western region of Ahmedabad Municipal Corporation (AMC) is growing faster than the eastern region. This is due to the city's population saturation.Afterthe1980s,regionssuchasSatellite, Vastrapur, Jodhpur, Gurukul, and others began to growasresidentialneighborhoods.Duringthistime, residential construction was mostly comprised of individual plotting plans, bungalows, and a few apartmentprojects.Thecity'sbusinessgrowthhas notbeenconcentratedinasingleregiondesignated as CBD over the years. Commercial growth has primarilyoccurred alongmajorthoroughfaressuch as Ashram Road and CG Road Prahaladnagar, which is ideally placed near the S.G Highway and renowned residential neighborhoods like as Bodakdev, Thaltej, Satellite, Chandkheda Motera, and forthcoming residential neighborhoods, has become a new commercial development hotspot. The construction of the Sardar Patel Outer Ring Road,theMetroRailProject,andnewtownplanning initiativesaretransformingthecity'sresidentialand commercialrealestate.

Thecitycanbedividedinto7majormicromarkets covering the city and suburbs based on the characteristicsofthearea.Theeasterncentralpart of the city has traditional type of settlement and comprises the walled city area. The belt from NarodatoNarolisemergingprimarilyasresidential belt, especially around SP Ring Road. Westernpart (CBD) started developing as residential areas for the middleand higher middle income groups after the construction of the bridges across the river Sabarmati Typology of residential development in western part of Ahmedabad is mainly low rise residential apartment complexes, independent bungalows and row houses. The area beyond SP Ring Road, Western Suburb, has two upcoming townships. Northern suburb has seen upsurge in last three to five years' time with Chandkhedaand Moteratakinglead.Thesouthernsuburbisnascent marketwithhousesinlowerticketsizecategory.

Markets

Major

Locations GrowthPotential Characteristics

Western Central&CBD CG Road, Ashram Road, Naranpura, Prahladnagar, Bodakdev, Satellite, Vastrapur,Vejalpur,Paldi

EasternCentral Maninagar, Shahibaug, Kalupur, Saraspur, Kankaria, Dudeshwar

Saturated

• Themostvibrantmarketasofnow.

• Residentialsegmentconsistsofbungalows,rowhouses, low riseandhigh riseapartments

• Retailsegmentconsistsofmallsandhigh streetretail

• Commercialsegmentconsistsofgovernmentaswellas privateoffices.

Saturated

• Theoldestsettlementofthecity.

• Therealestatedevelopmenthassaturatedinthisarea

• New developments are mainly seen WRT the redevelopmentoftheoldstructuresonly

Figure13 DevelopmentPatternofAhmedabadCity Source.GoogleMap,Author’sInterpretation

Figure14 DistributionofMajorMarketsoftheCity Source.GoogleMap;DevelopmentPlanStudio,S2022,CEPTUniversity;Author’sInterpretation

Western

Northern

• The emerging market of the city wr.t. Residential andcommercialsegments

• Majority of the developments are plotting and bungalowschemes.

• Thesuburbhasmajorindustrialsettlement.

• Outof5townshipsexistinginthecity,2arelocated inthissuburb

• Highlandavailability

• The emerging market of the city in the respective direction

• Primarily is a residential market with the oldest settlementbeingSabarmatiarea

• ONGC oneofthebiggestindustriesislocatedin thissuburb.

• Outof5townshipsexistinginthecity,3arelocated inthissuburb

• Primarilyanindustrialsettlement.

• Upcomingresidentialmarketalongtheringroad

• Primarilyanindustrialandwarehousingsettlement

• Real estate market at nascent stage. Development isseenmoreinthetermsoflowcosthousing.

The COVID epidemic had a significant impact on the Ahmedabad residential market, with home sales volumesdropping69%yearonyearwhenthepandemicstruckinH12020.Themarket,ontheotherhand, hasslowlyrecoveredsincethen,withsalesvolumesgrowingineachsucceedingmonth,despitethefact that the second wave was more severe in terms of infection incidence and mortality rate. Despite the introduction of theOmicron model earlier this year, this recovery has been accelerated in H1 2022, with salesquantitiesapproachingpre-pandemiclevels Salesincreasedby95%yearonyearto8,197unitsinH1 2022,drivenby lowhomeprices,arenewedneedforhomeownership,morepersonalspace,and better amenities.Itisnoteworthythatthisgrowthoccurreddespiteincreasedeconomicgrowthconcernsanda cumulative90basispointreporatehikeinMayandJune,whichimpactedhomebuyeraffordabilityduring theperiod.

TherecentchangeindemandtotheINR5 10millionticketsize,from15%inH12018to28%inH12022,has beenconsiderable.Becauseofthenecessitytoupgradethefamily'sprincipaldwellingandtofulfilworkand studyfromhomerequirements,thistrendhasbeennoticedacrosslocales.The>INR10mnticket sizehas alsoincreaseditssalessharefrom8%inH12021to10%inH12022.Since2018,however,therehasbeena gradualreductioninthepercentageofsaleswithticketsizesofINR5million.Thiscategory'ssalessharehas decreasedfrom76%inH12018to62%inH12022.

Source.KnightFrankResearch2022

Zone UnsoldInventory(Units) YoYChangeinUnsoldInventory Quarters to Sell

Central 2,908 43% 7.4

East 2,265 33% 5.0

North 3,670 174% 4.3

South 2,905 5% 11.6 West 6,671 42% 9.6

Theaverageageofinventoryhascontinuallydecreasedoverthelastsixyears,indicatingthegrowingrate at which ready inventory is consumed in the market. Inventory age is at 8.6 quarters, compared to 9.4 quartersinH12021.Unlessitiswithexperienceddevelopersinhighlysought afterareas,theminimalprice savings for under construction property does not justify accepting development execution risks. Unsold inventoryhadincreased47%yearonyearbytheendofH12022,yetitwasstilljusthalfofwhatthemarket carried in 2016. While the strengthening demand picture bodes well for the market, growing inflationary expectationsandinterestratesmayprovideachallengetomarketmomentuminthesecondhalfof2022

Ahmedabadhasalwaysbeenapricesensitivemarket,anddevelopershavebeencarefulnottoboostprices despiteincreasesinrawcostssuchassteelandcement,aswellasthecostofland,whichhasclimbed dramaticallyinthelastyear.Thismarketisalsothecheapestintermsofpersquarefootamongtheeightareas underconsideration,resultinginlowerdevelopermargins.Inresponsetogrowingcostconstraintsandahealthy demandclimate,themarketwitnessedaveragepricesriseby28%yearonyearinH12022

3|SITEASSESSMENT

1. SiteLocation

The subject site is in Chandkheda Motera Ward, on the north western part of the city of Ahmedabad. Location of the site is pre eminent part of it, as it abuts State highway, connecting Ahmedabad city to northernpartofthestate.

SUBJECTSITE

AsshownintheFigure22,thesubjectsiteispartoftheentireGujaratHousingBoardSociety.OverallGHB societyspans47.1hectares,withthesubjectsitecovering17.3hectareshavingtheperipheryof1.75kms. OwnershipofthesiteisunderGujaratHousingBoard,andasdataretrievedfromlandrecords,thelandis undernon TParea.UnderPublicHousingRedevelopmentPolicyof2016,redevelopmentofthesubjectsite istobecarriedout.Thesubjectsitehas3roadfacingsides,onfrontlongerside(585mt)abuts60mtwide state highway and at the back the longer side adjoins 12 mt wide GHB society’s internal road, whereas shorterside(260mt)has24mtwidecollectorroadadjoiningit Thesitehasapproximately820residential housesand30non residentialhouses.

Figure21 SiteLocationwiththeContextoftheCity Source.github

Figure22 PositionoftheSiteintheSurrounding Source.GoogleMap,Author’sInterpretation

2. RegulationComplianceontheSite

Subject site falls under Residential Zone -1 with overlay of Transit Oriented Zone as per Development Plan (2021) of Ahmedabad city, according to the Comprehensive General Development Control Regulation (2021) section 15, TransitOrientedZone(TOZ)meanstheareafalling within Blue Dotted Verge shown in the sanctioned land use plan and shall be consider as a condition for high density development. All type of building other than obnoxious industries are allowed in R 1 zoneaspersection9.2ofCGDCR(2021).BaseFSI for R 1 zone is 1.8 (Section 9.2) , and maximum permissible FSI for TOZ is 4 (Section 15.4). Thereafter, 22 FSI is purchasable at 40% of the jantrirate(Schedule20)

The subject site is under non TP area, meaning, before any type of development, 40% of the plot area is to be given back to the local authority. As adjoining road has width of 60 mt, maximum buildingheightpermissibleis70mt(Section13.5.1). Shortersideofthesitehas24mtadjoiningroadand backsidehas12mtwideroad,themargintobeleft is7.5mtboththesideandforlongersideitis9mt asitadjoins60mtroad(Section13.6.1).Asanother shortersidehasadjoiningplot,thereforemarginto be left on that side is 8 mt (Section 13.6.7). As per the FSI and ground coverage, 5,60,000 sqmt built uparea(Section266)ispermissibleapproximately, keeping maximum height of 70mt in mind. 35% of total utilized FSI for commercial use shall be requiredforminimumparkingandoutofthat,20% istobeprovidedforvisitor’sparking

Figure23 ApplicableBaseZoneandOverlayZone Source.AhmedabadCityDevelopmentPlan2021

SubjectSite

DevelopmentRegulationsonSite Source.GoogleMap,Author’sInterpretation (Section 15.10.1). 50% of the required visitors parking shall be provided at the ground level. 50% of all requiredparkingshallbeprovidedforcars(Section13.10.1).Basementshallbepermittedundercommon plot,internalroadandinternalmarginalspaceforexclusiveuseofparkingonly(Section13.11.1). Parameter

6.17.4CGDCR2021 PlotArea

6.17.4CGDCR2021

Figure24

3. PolicyFramework

Asthesubjectsiteisapublichousingsociety,PublicHousingRedevelopmentPolicyof2016isapplicable AccordingtothestatedScheme,publichousingsocietiesthataremorethan20yearsoldorinapoorstate onpropertyheldbytheUrbanAuthoritiescanberedeveloped.AccordingtotheScheme,eachflatholderis entitled to 140% carpet area, and the redeveloper is required to remodel the Scheme at no cost. Furthermore, the redeveloper must offer transit accommodation/rent and maintain the premises for a periodofsevenyears.AccordingtotheScheme,theproceduremaybelaunchedbytheassociationorthe relevantpublicauthority.Anyquarter/associationthatwishestoredevelopmusthavetheapprovalof75% ofitsmembers.Asperthepolicy,thereare3components:1.PublicHousingComponent(Redevelopment); 2.AffordableHousingComponent(Additionalunitstobegiventotheauthorityinlieuofpremium);3.Free SaleComponent(Tobesoldinthemarketbythedeveloper).

30sqmt

carpetareaifexistingunitis<30sqmt 40sqmt

areaifexistingunit

Redevelopment (PHC)

By submitting an application to the relevant public agency, an association or society of owners may starttheprocessofredevelopinganexistingpublic housingscheme.Thefollowingstepsmustbetaken in order to redevelop a public housing project. A resolution must be passed by an existing housing society or association with the support of at least 75% of the membership A worried governmental body will choose a private developer through an openprocessandsolicitelectronicbidding.Forthe goal of cross subsidization, the project can be reconstructed in packages by combining different types of homes. Negative bidding situations must bereportedtothestate levelscreeningcommittee for an appropriate response. The "BUA/Carpet Area/NumberofDU"biddingcriteriawillbeusedto create more housing stock. For the purpose of creating extra dwelling stock, the bidder with the highest"MaximumBUA/CarpetArea/Numberof DU"shallbechosen.

RemainingFSI

tobeusedinfreesalecomponent 99years

Sub leasecanbegivenonfreesaleland GHB

ownershipwillremainsame

Theexistinghousingsocietyorassociationowners,thechosenprivatedeveloper,andtheinvolvedpublic agency will enter into a tripartite agreement for redevelopment. The private developer will need the approvalof75%ofthemembers,includingthosechosenbyaresolutionissuedbyanexistingsocietyor association, in order to implement the redevelopment of the existing housing scheme of the field. The processwillbefacilitatedbytheorganizationorassociationandtherelevantpublicagency.

Thedeveloperwillpayforanynecessaryaccommodationsforthetransitsystemandmayalsoofferrental housingasaformoftransit accommodation.Developerswill beresponsibleforprovidingO&Mforthe firstsevenyearsafterreceivingBUclearance,andthenthebeneficiarysocietyororganizationwillgetit. Beneficiaries must make the required contributions to the maintenance fund for O & M. At the time of possessiontransfer,amaintenancedepositwillbedemandedfromeachbeneficiary.

4. CurrentScenario

The society is 37 years old, considering that, planning of internal roads, open spaces at different interval is something to appreciate. Currently there are 5 societies having a range of 32 to 110 sqmt of carpet area (1BHK to 3BHK). These semi detached and row houses units are incremented according to the residents’ requirementsbytheresidents.

Residential that have benefit of the frontage have been converted into non residential units to fetch the locational advantages. Residential units facing 60mtwideroadaremostlybeingusedushospitalsandshowrooms.Asthere are no restrictions of going vertical in construction, units which were only 2 story high,havebeenincrementedto4storiesasseeninfigure30,tomake the best of it. Whereas units facing 12mt wide rare road have simple been convertedtovanillashopssuchasgroceryortailoring.Unitsfacing24mtwide collectorroadaregettingbenefitsofproximitytothehospitalsandmostofthe non residential units here are being used as pharmacy or clothing shops as seeninfigure31. Figure34 Non ResidentialUnitsMapping Source.

5. SWOTAnalysis

Figure35 ProximitytoBRTSCorridor

Source.PrimarySurvey

1. Locationofthesiteattractscommercialcomponenttotheproject.

2. Frontageof585mtsupportstogomulti levelcommercialcomponent.

3. Developmentregulationsworkinfavourforthesiteandproject.

4. Proximityofemploymentsectors,andeducationfacilitiesmayattractconsumers.

Figure36 ResistancefromRemainingSociety

Source.PrimarySurvey

1. Astheprojectis1/3rdpartoftheentireestablishment,itmayaffecttheremaining2/3rdpartof theestablishmentnegatively.

2. Asit isaredevelopmentproject andhasahugescaleto it,arrangementandfinanceoftransit accommodationcanbecrucialtodesignandmanage.

Figure37 Frontage

Source.PrimarySurvey

1. As it is a redevelopment site, additional affordable housing unit can be included in the project briefafterassessingthefeasibilityoftheproject.

2. If no full FSI is achieved, remaining FSI can be converted into Transferable Development Right (TDR)touseanywhereelseinthecity.

1. Negativeresponsefromtheremainingestablishmentcanbereceived.

2. As it abuts 60 mt wide state highway and has frontage of 585 mt, noise pollution from the vehicularmovementscandisturbtheenvironment.

4|MICROMARKETSTUDY

1. LocalityAnalysis

Chandkheda locality is a part of ChandkhedaMotera ward, which consist Chandkheda, Motera, NewCGRoad,TP44,andsomepartofTragad.Itis locatedinthenorthernperipheralpartofthecityat theborderofGandhinagarandAhmedabaddistrict. In 2008 Chandkheda Motera has been included into AMC’s jurisdiction from Gandhinagar. ChandkhedaliesontheSardarPatel(SP)RingRoad and State Highway 41. Sardar Patel Ring Road connects Chandkheda to other peripheral areas in Ahmedabad. 11.47sqkm Area 96,260 Population 983 SexRatio 83.9pph Density

A little community previously existed in Chandkheda. Nevertheless, it has become one of the most sought after residential areas. The community's social infrastructure is one of the causes of this. Schools like Kendriya Viyalaya and KV Sabarmati, as well as institutions like VishwakarmaGovernmentEngineeringCollege,are located in the area. In the area, thereare hospitals including Kanoria Hospital and Apollo Hospitals. Postoffices,banks,afirestation,apharmacy,anda stadium may be found nearby The area’s connectivityisfurtherenhancedbytherapidBRTS and Metro system. Sabarmati Railway Station and SardarVallabhbhaiPatelInternationalAirportsarein 8 10kmradius.

Chandkheda has good amount of economy generators that brings population to the locality supporting and pushing real estate market of the locality. ONGC, Airport, and Apollo hospital are major economy generators. As these establishments are nation wide, people from all around the country resides here – making the localitycosmopolitan.

Figure40 SocialInfrastructureoftheWard Source.GoogleMap,Author’sInterpretation

Figure41 EconomyGenerator Source.GoogleMap,Author’sInterpretation

Figure38 SnapshotofChandkheda MoteraWard Source.Census2011

Figure39 AhmedabadCityWardMap Source.DevelopmentPlanStudio,S2022,CEPTUniversity;Author’sInterpretation

2. MicroMarketAnalysis

There are 4 micro markets are observed in Chandkheda Motera Ward, according to the characteristics of buildings that are developed. Chandkheda, New C G Road, Motera, and TP 44. Motera,andNewCGRoadcaterstoMIGandHIG category, in which Motera has indigenous populationofGujaratiduetoproximityofSabarmati area, which is the oldest settlement in northern Ahmedabad, whereas New C G Road is more of a cosmopolitan locality because of the proximity to ONGCcampusthathasemployeesfromallaround the country. Chandkheda and TP 44 caters to LIG and MIG category, in which Chandkheda has the indigenous population of Gujarati because of Chandkhedagam

AsthesubjectsiteisattheintersectionofChandkheda,andNewCGRoadmicromarket,micromarket studywillcovertherealestateprojectsthatarecameupintothesetwomicro marketinpast5years.

Figure42 Micro MarketofChandkheda MoteraWard Source.GoogleMap,Author’sInterpretation

Figure43 StudyProjectsinRadiusof1km

Source.GoogleEarthImagery;PrimarySurvey;Author’sInterpretation

Completed

On Going

Project Development MicroMarket Zone

PebbleBay Residential+Commercial

Chandkheda+NewCGRoad R1+TOZ

IshanLuxuria Residential NewCGRoad R1

OmkarLotus Residential+Commercial NewCGRoad R2

ShreeSarjuHeights Residential+Commercial Chandkheda R1 ShivsaiResidency Residential Chandkheda R1

EastEbony Residentiall NewCGRoad R1

SaralSky Residential+Commercial NewCGRoad R1

VihaanAvenue Residential+Commercial NewCGRoad R1+TOZ

ShyaamSanvi Residential+Commercial Chandkheda R1+TOZ ShlokAvenue Residential+Commercial Chandkheda R1

Project

PebbleBay

Completed

On Going

3BHK,4BHK,Retail 147 19

IshanLuxuria 3BHK 88 0

OmkarLotus 3BHK,Retail 28 32

ShreeSarjuHeights 2BHK,3BHK,Retail 110 33 ShivsaiResidency 1BHK,2BHK,3BHK 52 0 EastEbony 3BHK 88 0

SaralSky 4BHK,Retail 46 15

VihaanAvenue 2BHK,Retail 26 3

ShyaamSanvi 3BHK,Retail 144 48 ShlokAvenue 2BHK,Retail 56 13

It is observed that 96% of 2BHK, and 93% 3BHK typology are being sold in the market. This shows the demand of 2BHK, and 3BHK is high. 4BHK is recently introduced segment in the micro market thus absorptionislow.Consideringthisstudycoversonly4unitsof1BHKtypology,thatweconsideritanoutlier.

Source.PrimarySurvey;GujRERA(RetrieveinSeptember2022)

Itisobservedthat,lowestcommercialabsorptionrateincompletedprojectsis94%,and67%forongoing projects. Whereas lowest residential absorption rate is noted at 91% in completed projects, and 54% in ongoingproject.Thisshowsthatmarkethealthisgood,andconsideringtheseprojectsare5yearsold,age ofinventoryisnottobeworriedabout.

Source.PrimarySurvey;GujRERA(RetrieveinSeptember2022)

5|ITERATIONS

2. CaseStudy|PracticeinSector

Ekta Festival is the first Public Housing Society to gounderredevelopmentasperRedevelopmentof Public Housing Scheme 2016. It caters to MIG Category.Ithad60ResidentialUnitsand36Non Residential Units. The society was constructed 32 years ago, and due to fatal accident on the site, concerned agency GHB took the initiative for redevelopment. For tender procedure, GHB used “SwissChallengeMode”,whereanydevelopermay giveinitialproposal.Basedoninitialproposal,GHB floatedtendertoinviteotherdeveloper’sproposal. Ifanewdevelopercomeswithabetterproposal

theywintheworkorder,inthiscaseoriginaldevelopermayhaveopportunitytoraisehisproposal.Thecase studyistakentounderstandthenegotiationdoneintheproject.

TransitAccommodations

Theexistingresidentswerepaid15,000Rspermonthandexistingshopownerswerepaid18,000Rsper monthwith10%incrementeveryyear.

Negotiations

Amenities:

• Swimmingpool,clubhouse,mini theatre,children’splayarea,2carparkingand2two wheelparking spaceperunit

• Developerprovidedclubhouse,children’splayarea,2carparkingand2two wheelerparkingperunit Shops:

• Shops were at ground floor, and shop owners demanded newly constructed shops on ground floor only

• Developerprovided125%highercarpetareaatfrontmainroadatfirstfloor,extraparkingspaces AdditionalCarpetArea:

• Illegal construction of 10 20 sqmt of carpet area without any documents, common passage or commonparkingareausedillegally

• Ownersasked40%additionalcarpetareaonexistingcarpetarea,butwithoutproperdocumentsand legality,developerrefused IllegalConstruction:

• Manyhousingunitshasincreasedthecarpetareaillegallywithnopropertydocuments,withoutitAMC doesn’tgivepermissionfordemolition

• Ownersrefusedtopaypenaltyandaskeddevelopertopaytogetconsent

• Thisprocesstookextra 3months

Achievement

Conclusions

Olddilapidatedstructurereplaced

OptimumutilizationofFSI

Newhousingstockaddedinmarket

Ektaapartmentsisthefirstpublichousingsociety to go under redevelopment under the RedevelopmentofPublicHousingScheme 2016. The new project where developer has been permitted to build 14 storey building The new structure is earthquake resistant. Amenities like gym, landscape area, game room, children’s play area, car parking, 24x7 security, CCTV surveillance,seniorcitizenseatingareaprovidedin thenewdevelopment.

Figure52 EktaFestival PublicHousingRedevelopment Source.thefestivegroup

37%profitattoday’spriceisagoodstarttostartworkingontheproject.Apartfromthiswithfinancialbenefits, thedesiredpopulationdensityandbuiltvsopenratioisachieved.

6|PROJECTBRIEF

7|PROJECTPHASING

Phase1

Theprojectisdividedinto three phases. Phase 1 Will focus on constructing redevelopmentpartofthe project Phase1

Phase2

PHASING

Phase3

Phase2isbasedongettinginflowintheproject This phaseiffocusesonmoreconstructionforfastdelivery of affordable housing component and free sale component.

Phase2

Phase3isallabout makingprofitoutof the project, completion of construction work and proceeding to exit of the project.

Phase3

Figure59 Phasing Source.Author’sInterpretation

Averageconstructionperyearis44,500sqmt,whichisalmostdoublethanmicromarket.Here,thereisno land cost involved initially, but to use the benefits of public housing redevelopment, which is free sale component,redevelopmentandaffordablehousingcomponentmustobtainBUpermission,thenafterfree salecomponentcanattainBUpermission.Here,negotiationwiththeresidentswilltake1yeartostartthe project.Apartfromthis,constructioncosts,transitaccommodations,andgiftmoneymajorlysumsupto outflowininitialyears.

MaximumBUAisconstructedinyear6and7,wherealmostall5projectsaregoingsimultaneously.Whereas all three phases have almost equal amount of construction being constructed. In general, free sale componenthasthemaximumBUA,butasfreesalecomponentisdividedintothreeprojects,AHCproject hasthehighestBUAandnumbersofunits.

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8|FINANCIALFEASIBILITY

BreakEvenPointisadeterminant,whennetcashflowisinpositivenumber,meaningtheprojectisearning morethanspending.Fortheproject,breakevenpointiscomingatY2Q3.TillY2Q3,externalinvestmentis needed.Afterbreakevenpoint,project’searningscanbespent inproject’s cost.Here,initialinvestment neededis49CrINR.If20%marginistaken,60CrINRisrequiredinitialinvestment.Inthiscase,developer can run the project as a promoter and developer, where he has 100% share in equity and revenue generation,assumingthedeveloperhas60CrINRretainedfrompreviousproject’sprofits.

ThereisnotmuchprofitgainedbetweenY2Q3toY4Q2.Thus,ifY4Q2isconsideredasbreakevenpoint, initialinvestmentneededis161CrINR.If20%marginistaken,195CrINRisrequiredinitialinvestment.Inthis case,developercan formalimitedliabilitypartnershipwithtwootherdevelopersaspartners.Wherethe developerwillactaspromoterandpartner1with40%shareinequityandrevenue,andothertwopartners will share 30% equity and revenue each. Limited Liable Partnership is secured business model to do businesswithtwoormoreentities.Evenifoneentitybacksoff,otherpartnersarefinanciallysecured.

9|RISKMANAGEMENT

Inallthreecases,theprojectislittletonothinggetsaffected,meaning,projectissensitiveenoughtotakeahit ofanyexternalities.Apartfromthis,thereareotherunforeseenexternalitiessuchaspandemic,thatmightaffect unitsaleaswellasconstructionrates.

REDEVELOPMENT

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|CONCLUSION

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|Abbreviations

AHCAffordableHousingComponent

AMCAhmedabadMunicipalCorporation

AMTSAhmedabadMunicipalTransportService

AUDAAhmedabadUrbanDevelopmentAuthority

BHKBedroomHallKitchen

BRTSBusRapidTransitSystem

BUABuiltUpArea

BUBuildingUse

CACarpetArea

CBDCentralBusinessDistrict

CCTVClosedCircuitTelevision

CGDCRComprehensiveGeneralDevelopmentControlRegulation

CQCCBSCombinedQualityCumCostBasedSystem

DFCDedicatedFreightCorridor

DMICDelhiMumbaiIndustrialCorridor

DUDwellingUnit

FSCFreeSaleComponent

FSCCFreeSaleComponentCommercial

FSCRFreeSaleComponentResidential

FSIFloorSpaceIndex

GHBGujaratHousingBoard

GIDCGujaratIndustrialDevelopmentCorporation

GIFTGujaratInformationandFinanceTechnology

GMRCLGujaratMetroRailCorporationLimited

GujRERAGujaratRealEstateRegulationAuthority

INR IndianNationalRupee

IRR InternalRateofReturn

MAHSRMumbaiAhmedabadHighSpeedRail

O&MOperations&Maintenance

ONGCOilandNaturalGasCorporation

PHC PublicHousingComponent

PPHPeoplePerHactare

RoIReturnonInvestment

SBDSubBusinessDistrict

SIRSpecialInvestmentRegion

TODTransitOrientedDevelopment

TP TownPlanning

YoYYearonYear

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GSDPofGujarat,EconomicGrowthPresentationandReports|IBEF.(n.d.).IndiaBrandEquityFoundation.RetrievedSeptember18,2022,from https://www.ibef.org/states/gujarat presentation

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INDIAREALESTATERESIDENTIALANDOFFICEMARKET.Www.www.knightfrank.co.in.RetrievedSeptember19,2022,from https://www.knightfrank.co.in/research/india real estate residential and office market 2021 8699.aspx

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PublicHousingRedevelopment