Training Module

Real Estate Sector

Today, the real estate industry in India has become one of the
major investment sectors.Real estate activities in India have
grown to a great extent in the past decade. The Indian real estate
market size is expected to touch US$ 180 billion by 2020.

The sector started flourishing with India embarking on broadbased liberalization in post 1990's era when various multinational
corporates started seeking permission to commence operations in
India.

According to a recent report, by the end of 2013,residential

property in Delhi NCRregion is expected to have a totaldemand
of over 10.2 lakh units, 67 lakh retail spaces and 250 lakh sq ft
ofoffice spaces

HNI population by country

Merrill
Lynch
Wealth
Manageme
nt
World
Wealth
Report
2011

50 %

of Chinas wealthy households live in the top 10 cities.

Beijing, Shanghai, Guangzhou, and Shenzhen account for

31%

43%

of India's wealthy households live in

By 2015
Beijing today

NCR

NCR

and Mumbai.

will be larger than

Investments mapping of HNIs in

India

The Delhi HNI

vs. Others

Price Trend Analysis of Delhi

NCR
35%
35000

CAGR

35000

37%

Launch
Price

35000

33%

30000

Price in Sq.ft

25000
25000
20000

21%
14000

15000

13%

10000
5000
0

8100

37%
4500
1800
Dlf Aralias
2002

Dlf Magnolias

2006

3500

World Spa

2005

4750
2525

4850

BPTP spacio Jaypee Pavillion

2010

7000

2008

BPTP Plots
2007

Gurgaon Market

With rising demand in residential, office, retail, and hospitality

sectors,Gurgaon tops the demand charts. Forthcoming world-class
projects, proximity and good connectivity to Delhi are a few factors driving
these figures. Gurgaon is registering the fastest growth in thereal
estatesector in the country.

Over the last one year, capital values rose by more than 30-35% in
Gurgaon residential sector.

Top realty players like DLF, BPTP, Tata Housing, Hines, Homestead, Unitech,
Ansal API, Raheja Developers, Chintels Ltd, Adani, Godrej, BPTP, IREO, M3M,
MGF Emaar, Orris Infrastructure, Antriksh, Assotech Ltd, Supertech, etc,
have huge land banks here and come up with new projects periodically.

There are 55,000 ready flats today and is expected to have additional
65,000 by the end of 2014. Another 20,000 in 2015 will take the final tally
to almost 150,000 by the end of 2015.

Gurgaon Master Plan

KMP
EXPRESSW
AY

DWARKA
EXPRESSW
AY

DWARKA
EXPRESSW
AY

IFFCO
CHOWK

NATIONAL
HIGHWAY 8

GOLF
COURSE
ROAD

IMT
MANESAR
SOHNA
ROAD

SOUTHERN
PERIPHERAL
ROAD

GOLF
COURSE
EXTENSION

Some of the Key Players

Present in Gurgaon Market

Faridabad Market

Faridabad, an industrial hub of Haryana, is now emerging as the preferred

destination for investors as there are huge prospects of economic boom in
the air. The land crunch in Delhi & Gurgaon is one of the primary factors
for rocketing prices in the NCR, riding on the back of an insatiable
demand.

The place is home to many MNCs in the manufacturing sectors like

Whirlpool, Goodyear, Larsen and Toubro, Asea Brown Boveri, GKN Invel,
Woodward Governor, and Castrol, apart from a clutch of Indian majors like
Escorts, Eicher, Cutler-Hammer, Hyderabad Asbestos, and Nuchem, which
are operating in this belt.

Delhi Metro Phase III (to be completed by 2014), is already under progress,
which will connect Delhi to Faridabad by linking Badarpur, NHPC Chowk,
Badkal Chowk, Old Faridabad and YMCA Chowk and will bring more
infrastructure development to the city.
With the rise in demand, projects like The Granduera ,Resort and many
others which were launched at the price range of Rs 1800 per sq ft are now
selling around upwards of 4500 per sq ft. The prices in this area are still
reasonable, if compared to other areas of Noida and Gurgaon. The property
rates of this area have showed stable to positive values in rates and have
witnessed an average hike of 20 per cent per annum since last 3-4 years.

New
Industrial
Town

New
Industrial
Town
Surajkund
Road
Mathura
Road

Mathura
Road

Bye Pass
Road

Greater
Faridabad

Greater
Faridabad

Some of the Key Players

Present in Faridabad Market

Some Helpful Jargons

BSP

BASIC SALE PRICE

PLC

PREFERENTIAL LOCATION CHARGES

DC

DEVELOPMENT CHARGES

EDC

EXTERNAL DEVELOPMENT CHARGES

IDC

INTERNAL DEVELOPMENT CHARGES

CMC

CLUB MEMBERSHIP CHARGES

FAR/FSI

FLOOR AREA RATIO/FlOOR SPACE INDEX

LOI

LETTER OF INTENT

EMD

EARNEST MONEY DEPOSIT

CLP

CONSTRUCTION LINKED PLAN

TPD

TIMELY PAYMENT DICOUNT

PLP

POSSESSION LINKED PLAN

TPR

TIMELY PAYMENT REBATE

EWS

Economic Weaker Section

TSV

Total Sales Value

COP

Cost of Property

Some Helpful Jargons

Carpet
Area

This is the area of the apartment that does not

include the area of the walls i.e. the area of the
apartment that a carpet can cover.

Built-Up
Area

This is the area of the apartment that includes the

area covered by the walls.

Super
Built-Up
Area

This includes the built-up areas such as the lobby,

lifts, stairs etc.

FSI (Floor
Space
Index)
/FAR(Floor
Area Ratio)

This is ratio of land to carpet area. Generally

it is 1 for residential plots (much less for
agricultural land) For example, if FSI is 1, and
land area is 3000 sq ft, then total carpet area
on that land cannot exceed 3000 x 1 = 3000
sq ft. It should be noted that FSI is not
applicable to terraces, balconies

What Sums Up to Total Cost of the

Property
BSP*
Size of
a flat

PLC
Charges

Club
Charges

DC (External Development
Charges +Internal Development
Charges +Other Development
Charges
PBIC

Stamp
Duty &
Registrati
on
Charges

EEC,FFC

Car
Parking

IFMS

Service
Tax

Total Cost

Types of Payment Plans

Construction
Linked Plan
(CLP)

As the name suggested, payments are linked to Time and Construction Milestone.
A typical CLP will have 1 or 2 time linked payments and thereafter 6 to 10
(depending upon the type of product Construction linked.
Customers can get home loans against these plans from authorized banks,
usually HDFC, ICICI, Indiabulls, - this is project specific.
Traditionally Most booking are under this plan.

Down
Payment
Plan
(DP)

As the name suggests, the buyer agrees to pay 80% to 95% of the Total Salve
Value(TSV) within 4 to 6 Months of booking.
As the buyer is paying upfront, this plan has the advantage of 8% - 10% discount
on TSV.
This plan is opted by HNIs with a lot of disposable money.

Time Linked
Plan
(TLP)

Payment milestones are spread over a fixed time period i.e. every 60 days.
Suitable for HNI on launch, who do not want to go for bank loans and also used in
properties close to delivery (constructed properties).
Sample

Subvention
Plan
(SP)

A very attractive and powerful financial product. Suitable for all salaried and HNI
customers.
Prerequisite: The customer should be eligible for bank loan equal to TSV.
Thereafter the bank disburses the money to the developer (us) and the developer
pays interest for a fixed period to the bank, without any financial burden /
obligation on the customer.
The scheme is available from select banks only, usually HDFC.
Ensures very attractive return for the customer on the equity invested as per the
illustration.

Know our Product: Payment plans

Down Payment Plan

CONSTRUCTION LINKED PAYMENT PLAN

Booking Amount
7.5 % of BSP#
Within 75 days from the booking

To complete 15% of BSP

On start of Excavation

10% of BSP

On Casting of Upper Basement Slab

10% of BSP + 20 % of Allied charges#

On Casting of 1st Floor Slab

10% of BSP + 20 % of Allied charges#

On Casting of 4th Floor Slab

10% of BSP + 20 % of Allied charges#

On Casting of 8th Floor Slab

10% of BSP + 20 % of Allied charges#

On Casting of 12th Floor Slab

10% of BSP + 20 % of Allied charges#

On Casting of 14th Floor Slab

On Start of External Plaster

10% of BSP
10% of BSP
5% of BSP+ IFMS+ Registration charges+
Stamp Duty#

At the time of offer for Possession

Know our Product: Payment plans

Down Payment Plan
Down Payment Plan (10% rebate)
Booking Amount

7.5% of BSP#

Within 45 days from offer of

Allotment

77.5% of BSP +100% of Allied

Charges#

At the time of Possession

5% of BSP+ IFMS+
Registration charges+ Stamp
Duty#

Allied Charges includes PLC + DC + CPC + Club Membership

Charges.

Know our Product: Payment plans

Subvention Plan
Stages

Client's Contribution

At the time of booking

`20 / `25 / `40 lacs as per size

Within 30 days of booking

To complete 15% of COP*

Bank's Contribution

Start of Excavation

35% of COP*

On casting of Second floor Slab

35 % of COP*

No Pre EMI For 24 months

On laying Internal Marble Flooring

10 % of COP*
5 % of COP* (From the Customer/ Bank)
PBIC + IFMS Stamp Duty + Registration Charges +
Administrative Charges + All other applicable
charges

On Possession

Plot Size

290

Illustration

Sq. Yd.

On Total Investment - 2years

Property
Property Value +
Appreciation on property Return on Investment
Appreciation @
Return

Basic Sales Price

45,381,000

Development Charges

1,667,210

5%

51,870,652

4,822,442

68%

Cost of Property

47,048,210

8%

54,877,032

7,828,822

111%

15% of COP investment

value

7,057,232

10%

56,928,334

9,880,124

140%

12%

59,017,275

11,969,065

170%

No PreEMIs
for 24
Months
PBIC: Power Back-up Installation Charges
IFMS: Interest Free Maintenance Security
COP: Cost Of Property

*Average Rate of Return Annually 10-15% in Gurgaon As per

Industry Reports

Know our Product: Payment plans

Self-Funding Payment Plan
Stages

Payment

Allied Charges

On Booking

25% of BSP

Within 12 months of booking

25% of BSP

100% of Allied Charges (PLC, DC & Club membership)

On offer of possession

50% of BSP

IFMS + PBIC + Stamp Duty + Registration charges &

Administrative Charges + all other applicable charges.

Plot Size

290

Illustration

Sq. Yd.
Basic Sales Price
Development Charges
Cost of Property

25% of COP
25% of COP

45,381,000
1,667,210
47,048,210

11,762,052.5
0
11,762,052.5
0

On Total Investment 3 years

Property
Property Value +
Appreciation on property Return on Investment
Appreciation @
Return
5%

54,464,184

8%

59,267,195

10%

62,621,168

12%

66,099,348

7,415,974
12,218,985
15,572,958
19,051,138

*Average Rate of Return Annually 10-15% in Gurgaon As per

Industry Reports

PBIC: Power Back-up Installation Charges

IFMS: Interest Free Maintenance Security
COP: Cost Of Property

33%
54%
69%
85%

Area Unit Conversion

1 Acre

43560 sq.ft

1 sq. meter

1.196 sq. yard

1 acre

4840 sq. yards

1 sq. yard

9 sq. ft

1 hectare

2.47 acres

Disbursement of Brokerage
Only on
BSP

Channel
Partner
Brokerage

How to Study Floor Plan

How To Study Site Plan

Specifications
Type

Standard

Luxury
Painted in
pleasing shades
of acrylic
emulsion paint
with velvet finish

Super Luxury
Plastered with POP
and acrylic
emulsion paint

Rooms

Oil Bound Distemper

Flooring

Vitrified Tiles/Ceramic
Tiles

Imported
Imported marble
marble/hard wood

Doors

Seasoned hardwood
frames with polished
paneled doors

Seasoned
hardwood frames
with designer
shutter (high and
large)

Teak wood
panelled
door/skin
moulded doors
with design

Thanks