Real Estate as an Investment option

Comparative study on various asset

classes. Why Indian market , Why

NCR market is a hot destination

Module 1.2

Why Invest in India

• The market size of real estate in India is expected to increase at a CAGR of 15.2 per cent during FY2008 - 2028 and is estimated to be worth USD853 billion by 2028 ( Report C&W , Knight Frank)

• Demand for residential properties has surged due to increased urbanization and rising household income

• About 10 million people migrate to cities every year

• 35 per cent of the population is in young age bracket (15-35 years)

• India’s urban population as a percentage of total population was around 32 per cent in 2014 and is expected to rise to 40.0 per cent by 2030. There will be a shortage of 20 million houses by 2030 in Urban areas leading to a massive demand supply gap (Source: Indian Census, World Bank, Mckinsey estimates, Cushman & Wakefield)

• The government has allowed FDI of up to 100 per cent in development projects for townships and settlements

• Real estate contribution to India‟s GDP is estimated to increase to about 13 per cent by 2028

• Current market of real estate is a completely buyer driven market because of sluggish demand. Henceforth developers have come out with payment plans which were never heard before making it an absolute right time to enter in the market.

Why Invest in DELHI/NCR

• Delhi-NCR real estate market is expected to move up by 50% aprox in terms of private equity investment in real estate market.

• Major destinations for PE investment of NCR will be Noida, Greater Noida (west) Yamuna expressway and Ghaziabad. NCR real estate received an investment of Rs 1650 crore in 2013, which is almost more than double of last 2012’s PE investment

Key Influencers for Delhi NCR

• Approval of Noida-Greater Noida Metro by Ministry of Urban Development in April 2014

• Industrial developments near Sohna–IMT Sohna and Ascendas IT Special Economic Zone

• Widening of NH-24 and linking NH-58 with NH-24

• Announcement of 37 new power substations in Gurgaon, Sectors 58-115 in June 2014

• Approval of the proposed 9.71-km metro extension from Dilshad Garden to New Bus-Stand in Ghaziabad

• Extension of Delhi Metro from Badarpur to YMCA Chowk in Faridabad to start functioning soon

• Faridabad-Noida-Gurgaon (FNG) Expressway, Southern Peripheral Road and Kundli-Manesar-Palwal

• Expressway emerging as major corridors with prominent residential developments. KMP and KGP expressways will decongest Delhi/NCR

Return on Gold , FD , Govt Secs

• According to a recent study by Cians Analytics on the returns from various asset classes in India during 1991-2013, real estate and equity market have given maximum returns to investors.

• The study covers five types of asset classes – equities (BSE Sensex), commodities (gold), bank fixed Deposits (1-3 year maturities), government securities (10-year maturity), and real estate. It

• The study also explored gold, government securities and fixed deposits at banks, which were found to have posted comparatively lower returns of 10.9 per cent, 9.7 per cent and 8.8 per cent respectively for the 23-year period

Return on Shares and Mutual Funds

• According to a recent study by Cians

Analytics on the returns from various asset classes in India during 1991-2013, real estate and equity market have given maximum returns to investors.

• The study covers five types of asset classes – equities (BSE Sensex), commodities (gold), bank fixed Deposits (1-3 year maturities), government securities (10-year maturity), and real estate. It was aimed at finding out which asset class would have provided the highest return since the liberalisation process commenced in 1991.

• After real estate, equities have also performed strongly in India as the stock market gave a healthy annualised return of 15.5 per cent on a nominal basis during the past 23 years.

• Mutual funds have shown 12%. • After adjustment of inflation returns on

M.F and Shares goes down further.

Return on investment in real estate

• According to a recent study by Cians

Analytics on the returns from various asset classes in India during 1991-2013, real estate and equity market have given maximum returns to investors.

• The study covers five types of asset classes – equities (BSE Sensex), commodities (gold), bank fixed Deposits (1-3 year maturities), government securities (10-year maturity), and real estate. It was aimed at finding out which asset class would have provided the highest return since the liberalisation process commenced in 1991.

• Looking at the overall returns, the study noted that "real estate appears to have outperformed all other asset classes during the 23-year period with an annualised rate of 20 per cent."

Why Invest in Noida

• Noida Expressway is a six-lane 24.53 km long expressway connecting Noida to Greater Noida.

• There is real estate development on both sides of the Expressway.

• Prime sectors for residential development on the Noida Expressway are Sectors 44, 45, 96, 97, 98, 99, 100, 107, 105, 108, 110, 128, 129, 130, 131, 133, 134, 93A, 137, 143B, 143, 150.

• Major developers along the Noida Expressway include – ATS, Jaypee, Lotus, Paras, Ajnara, Amrapali, Supertech, Omaxe, Paramount, Gulshan Homz, Eldeco, etc.

• The signal free expressway provides easy connectivity to Delhi (DND expressway), Central Noida, Yamuna Expressway and Greater Noida.

• As sectors-124,125,126,132,136,142 are institutional sectors, there is a presence of many MNC’s such as HCL, Dell, Accenture, Metlife, TCS, Steria, NIIT, Sapient ,Samsung , Havels ,Infospace ,KPMG etc. With total 10 sectors dedicated to IT/ITes space. Most of topmost MNC’s will start their operations on Expressway.

• There is a presence of many colleges and schools such as Amity University, JIIT, Lotus Valley, Mayoor, Mothers Pride and Shiv Nadar’s school , DPS, Genesis , DPS, Step by Step ,Cambridge

Why Invest in Noida

• Projects such as Jaypee Wish Town, Supertech Supernova , Unitech Grande , Lotus Sports city will make the expressway the prime location in Noida in the near future.

• 11 Luxury 5 star hotels are planned on Expressway such as Grand Hyatt, Clarkston ,Leela ,JP ,Le Meridian ,intercontinental , ITC etc. will make the expressway a posh residential stretch. Close to 15000 Crore of hospitality investment is planned on Expressway.

• With Special Economic Zones (SEZ) along the expressway, many more MNC’s will mark their presence on the Noida Expressway.

• Sec-93A is the prime residential sector along the expressway with average rental rate of Rs.20-25,000 for a 2BHK and average resale price of Rs.13,000 per sq.ft.

• The FNG (Faridabad-Noida-Ghaziabad) road will cut across the Noida Expressway giving easy connectivity to Ghaziabad and Faridabad as well.

• The expressway is prepared to handle heavy vehicular traffic in the future with the scope of adding another 75 meters to the existing 75 meter width.

Why Invest in commercial property

• Internationally bank interest rates are declining. All developed countries have far lesser or even negative returns as compared to India. In days to come, RBI will slowly reduce the interest rate once inflation is under control. This will fuel demand for commercial properties and exit at such a point of time will give best returns for your property.

• Annual rental yield on commercial properties ranges from 8 -12% p.a. With capital appreciation filtered in, the annual yield increases to 16% - 20%.

• Prevailing rental yield in NCR is around 7.5% to 8%, whereas Mumbai fetches yield of 9% to 12% (in commercial properties)

• it is seen that investments in Real Estate Investment Trusts (REITs – special formed trusts to invest in commercial – ( rent yielding properties) has given best returns. With REIT entering in Indian market demand for commercial properties will further grow.

• With residential yields at 2-3 per cent and commercial yields at 8-12 per cent, investing in the latter makes sense.

• Malls which are based on a concept of attracting higher footfall are more successful and yield higher rental value compared to Malls which are developed by builder for the purpose of selling. Like DLF malls despite of big name are not running very successfully as compared to Ambience which because of concept run more successfully because of concept. GIP also yields much higher rentals because it pulls much more crowd as it is based on concept

“TO BE INDIA’S MOST ADMIRED &

CUSTOMER CENTRIC REAL ESTATE

SERVICE PROVIDER”

Module 1.2

Mr. Sunny Katyal

Director – IC Royals ,Training

Mr. Honey Katyal

C.E.O

Ms. Sakshi Katyal

Director Operations

Ms. Bhawna Katyal

Director H.R & Administration

Module 1.2

1.2 IC Top management team

Amit Raheja – Dynamite

Pranav Sharma - Chanakyas Sumit Raheja – Dynamite

Vivek Sawhney – ICSK

Module 1.2

1.2 IC Top management team

Sanjeev Bhardwaj - Supernova

Tejasvi Kapoor – T. Rocks

Naem Malik – IC Delhi

Module 1.2

1.2 IC Top management team

Achievements

Awards and Accolades

Awards and acolades

PAN India Presence

1. Mumbai

2. Bangalore

3. Dehradun.

4. Chandigarh

5. Gurgaon

6. Patna

7. Faridabad

8. Meerut

9. Agra

10.Lucknow

11.Ahmedabad

12.Moradabad

13.Noida-126

14.Noida-63

Opened

offices in

Singapore

and Dubai.

Coming up

soon in USA

& CANADA.

1.2 Awards and acolades

Module 1.2

IC as No.1 real estate consultant

1. No. 1 Real Estate Company, sold more than 90K properties since 2006.

2. We have PAN INDIA presence 14 offices across India and 2 international

locations.

3. Consistently won R & Rs in various surveys for last 3 years.

4. Net worth of of 1000 Cr – speaks of the Reliability

5. 1.5 lakh sq. feet area of office, 1500 sq. ft. area being added every

month.

6. 2100 professionals associated with us from diversified industry

background.

7. Tied up 200 developers and are currently doing more than 400 projects

across the country.

8. Variety of investment options that range from 1.5 lakh -18 Cr.

9. Loan Department ,customer care department , resale department to

take care of all requirements of the customer

10. One stop shop for all the needs of a client

Yamuna Expressway

Industry

• YEDA has demarcated 17 sectors for industrial development in the master plan of Yamuna Expressway. With DMIC huge industrial development is planned across Yamuna expressway. All top business houses of the country like Reliance , IBM , Sri Adhikari Brothers , Fortis etc are planning there set up on Yamuna Expressway. Industrial development has been a major driving force for growth of Gurgaon , Faridabad , Noida and now Nimrana and Daruhera.

Only city to have all the growth drivers

Industry – DMIC

G.B.University With many educational institutes coming up on the Yamuna Expressway, the area is set to become one of the prime destinations of students. Gautam Budh University, spread over 511 acres, is built to accommodate nearly 5,000 students is already operational Other institutes include Galgotia’s University, Noida International University, GL Bajaj to name a few. More than 30000 students will be a part of these universities leading to high rental value in these area’s.

• Already 29 Universities have been approved by U.P Govt which will make Yamuna Expressway a biggest University Hub in the country.

Educational Institutions

Night Safari Noida Expressway will be the first such development in India and the fourth in the world, after Singapore, China and Thailand. Covering a total of 550 acres along with existing forest.

Night Safari will be designed by renowned zoo designer Bernard Harrison, who has also designed world famous Singapore Night Safari. Proposed

Night Safari has already received clearance from Central Zoo Authority and the project has been cleared by Supreme Court of India from all legal objections.

Tourism

News on Yamuna Expressway

Cricket stadium Cricket Stadium at Jaypee Sports City in Yamuna Expressway City, will be the second international cricket stadium in Uttar Pradesh, other being Green Park stadium in Kanpur. Designed to seat 100,000 spectators, first phase will house 40,000 seats. Uttar Pradesh Cricket Association (UPCA) has already inked 50 years agreement with JPSI to hold Twenty20 matches.

• Most of the places have become famous in India because of proximity to cricket stadium like Mohali. Today Mohali is known because of cricket stadium and the property prices in Mohali are same or even higher than Chandigarh.

Tourism

F1 Track Analysis of properties near F1

Tourism

• While comparing the prices of all the 11 circuits one thing is common that the prices of properties are more near F1 circuits than properties outside the circuits.

• When we did the average of all the 11 cities with respect to rent and rates inside and outside the circuits we found that there was a difference in rates unto 55% and 59% respectively.

• Wherever F1 circuit has been build more development has come in that area.

IT/ITES

• With 650 acres of integrated IT Park developments, Sector Tech Zone is a promising area with excellent potential for future employment of thousands of IT & ITES (IT Enabled Services) professionals. There are a total of 15 plots, ranging between 8-100 acres, with most of them already been allotted. Major names include: Plot 1&2: NIIT (25 Acres), Plot Stellar (10 Acres), Plot 4: Unitech (50 Acres), Plot 5: Wipro (100 Acres), Plot 6: Ansals (75 Acres), Plot 7: Uppals (75 Acres), Plot 8: Kessal Valley I (25 Acres), Plot 10: Globus(10 Acres), WTC. Currently 3000 employees are working in NIIT once all the offices are functional more than 50000 employees will be working in Tech zone leading in high rental and residential demand in this area.

• Sector Tech Zone is expected to become most sought after destination by IT & ITES companies.

Infrastructure – Eastern Peripheral

Expressway

• Also known as National Expressway 2 and KGP Expressway (Kundli-Ghaziabad-Palwal), is a 135 km long Expressway designed to provide signal free connectivity between Palwal and Kundli.

• EPE will pass through Faridabad & Sonipat districts in Haryana and Gautam Budh Nagar, Ghaziabad and Baghpat districts in Uttar Pradesh.

• Proposed route of EPE (The project takes off from NH-1 in Kundli , crosses Yamuna near Mawikalan, Hindon river near Sharfabad, NH-58 near Duhai, NH-24 near Dasna, NH-91 near Beelakbarpur, Kasna-Sikandrabad road near Sirsa, re-crosses Yamuna near Fajjupur Khadar, Atali-Chinsa near Maujpur and meets NH-2 beyond Palwal.

News on Yamuna Expressway

Infrastructure – Metro Connectivity

News on Yamuna Expressway

News on Yamuna Expressway

News on Yamuna Expressway

News on Yamuna Expressway

News on Yamuna Expressway

News on Yamuna Expressway

Greater Noida's plan to set up Rs 50cr

heliport approved

GREATER NOIDA: Greater Noida is all set to get a heliport with the Greater Noida Industrial

Development Authority's consultant RITES giving its nod to the project's feasibility report.

The heliport will be constructed on a 22-acre plot in Safipur near Gautam Budh University, along

the Noida-Greater Noida expressway, said officials.

Estimated to come at a cost of about Rs 50 crore, the heliport was proposed after the

international airport project in Jewar was scrapped.

Uttar Pradesh chief minister Akhilesh Yadav had in May 2013 given his nod to the project,

which was to get operational last year. After a report by experts stressed on the likelihood of the

heliport creating major noise pollution, its location was shifted to near Safipur,

"Some technical issues including the required height while taking off - up to 4 metres - for an

aircraft, needed to be decided. We will have to raise the ground level for this," the official said,

adding this may push the project cost. "Work on the project is expected to start from June," the

official said.

Likely to get operational by 2017, the heliport will also be used for medical and evacuation

emergencies, tourism besides passenger services.

"A detailed project report and other documents will be submitted to the DGCA for their

approval," the official said.

There are plans for construction of a maintenance facility and a helicopter training academy. The

possibility of an 800-metre mini airstrip in the area is also being evaluated technically.

Vandana Keelor,TNN | Mar 12, 2015, 03.00 AM IST

News on Yamuna Expressway

Noida, Greater Noida Authorities Sign

Agreement with DMRC for Metro Extension

Noida | Press Trust of India | Updated: October 19, 2014 02:03 IST

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Noida: The development authorities of Noida and Greater Noida today joined hands with Delhi

Metro Rail Corporation for two metro extensions here from City Centre to Noida Sector 62 and

Greater Noida and is likely to be completed by 2017.

A Memorandum of Understanding was signed between DMRC Managing Director Mangu

Singh, NOIDA and Greater NOIDA authority chairman Rama Raman, and Secretary,

Government of India, Shankar Agarwal at a function held in Noida on Saturday.

The Authority also gave two advance payment cheques to DMRC officials for carrying out the

necessary work.

The two sections where metro will be extended is from City Centre to Noida Sector 62 and City

Centre to Greater Noida.

The City Centre to Sector 62 line is 6.675 kilometres long and will have six stations. The total

project cost is Rs. 1,816 crores. Proposed station locations are Sectors 34, 52, 59, 61, 62 and

Electronic City (NH 24), an official release said.

This metro line will also be a boon for Indirapuram residents it is just across the NH 24.

The City Centre to Greater Noida extension line is 29.7 kms long and will have 22 stations. Total

cost of the project is estimated Rs. 5,064 crores.

In July an MoU for Botanical Garden to Kalindi Kunj metro line was signed with a total project

cost Rs. 845 crore and is expected to be completed next year.

Story First Published: October 19, 2014 02:03 IST

News on Yamuna Expressway

Film City on Yamuna Expressway

Yamuna e-way top brass plan Film

City Tuesday, 07 January 2014 | Anup Verma | The Pioneer

The Yamuna Expressway Industrial Development Authority

(YEIDA) has planned to develop a Film City zone in the region.

Spanning across 250 acres of land, the proposed Film City will

be made operational on the lines film cities of Mumbai and

Hyderabad where studios will be set up for film shooting and

production. The YEIDA top brass are mulling to commence

work on this mega project around June of the current year and

the project will take three years to be completed.

According to a senior official of YEIDA, the project was

conceptualised after receiving a spate of proposals from Bollywood

directors and owners of various news channels to establish a film

city along the Yamuna Expressway. Senior officials of the authority

reportedly visited the film cities at Mumbai and Hyderabad to study

the infrastructure.

The official also said that the proposed projects like night safari in

Greater Noida, riverfront along with Hindon River, heliport at zero

point on Yamuna expressway and a convention centre in Greater

Noida will also help in making the area shooting friendly as the

proposed site is located 30 km before the zero point. To provide 24

hour uninterrupted power to the area, a sub-station of 750 KVA is

also being set-up in Jahangirpuri area. Apart from this proposed

Metro connectivity between national Capital and Greater Noida will

prove helpful for this purpose. “As the surrounding area is

developing rapidly, the expressway region could be a prime

location for film shooting,” said PC Gupta, CEO of YEIDA adding

that there will be no problem of land as the authority has sufficient

land in this region.

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