Training Module

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 broad-based 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

Merrill Lynch Wealth ManagementWorld Wealth Report 2011

HNI population by country

India in top twelve in terms of No of HNIs in the Country within one year we saw a significant growth of 20% in terms of HNI , current number more than 160000 HNIs in India 3

HNI population to increase by a tremendous amount in the next 3 years Concentration of these HNI s are in Delhi NCR & Mumbai 4

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 NCR and Mumbai.

By 2015 NCR will be larger than Beijing today

Luxury Landscape spread of HNIS across Comparison between India and China 5

Investments mapping of HNIs in India

.Residential real estate remains especially attractive and lucrative for these HNIs given the strong fundamentals in the region, where the growing middle classes in emerging economies are straining the relatively tight supply of high-quality residential real estate.

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The Delhi HNI vs. Others

Deep diving into investment patterns of states --- Investment pattern of a Delhi HNI is max in Real estate even in comparison with other Tier 1 cities , Affinity towards real estate 7

Price Trend Analysis of Delhi NCR20022006200535%33%21%CAGRPrice in Sq.ft20102008200737%13%37%

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Gurgaon MarketWith 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.

IFFCO CHOWKGOLF COURSE ROADSOHNA ROADGOLF COURSE EXTENSION ROADNATIONAL HIGHWAY 8

DWARKA EXPRESSWAYIMT MANESARKMP EXPRESSWAYGurgaon Master PlanSOUTHERN PERIPHERAL ROAD

Some of the Key Players Present in Gurgaon Market

Faridabad MarketFaridabad, 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.

And We are by far the leaders in Faridabad Market and other players would have even less than 100 acres

Mathura RoadSurajkund RoadBye Pass RoadGreater FaridabadNew Industrial Town

Some of the Key Players Present in Faridabad Market

Some Helpful JargonsBSPBASIC SALE PRICEPLCPREFERENTIAL LOCATION CHARGESDCDEVELOPMENT CHARGESEDCEXTERNAL DEVELOPMENT CHARGESIDCINTERNAL DEVELOPMENT CHARGESCMCCLUB MEMBERSHIP CHARGESFAR/FSIFLOOR AREA RATIO/FlOOR SPACE INDEXLOILETTER OF INTENTEMDEARNEST MONEY DEPOSITCLPCONSTRUCTION LINKED PLANTPDTIMELY PAYMENT DICOUNTPLPPOSSESSION LINKED PLANTPRTIMELY PAYMENT REBATEEWSEconomic Weaker SectionTSVTotal Sales ValueCOPCost of Property

Some Helpful JargonsCarpet AreaThis 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 AreaThis is the area of the apartment that includes the area covered by the walls.

Super Built-Up AreaThis 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 PropertyBSP* Size of a flat

PLC Charges

Club ChargesCar Parking

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

IFMS

PBIC

Total Cost EEC,FFC

Service TaxStamp Duty & Registration Charges

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. Payment obligation on the customer starts post the subvention period. Customer cannot transfer property in the subvention period.Self Funding PlanThis Plan is best for those who have heft amount lying with him and who would want to deploy those funds periodically

Know our Product: Payment plansDown Payment PlanCONSTRUCTION LINKED PAYMENT PLANBooking Amount7.5 % of BSP#Within 75 days from the bookingTo complete 15% of BSPOn start of Excavation10% of BSPOn Casting of Upper Basement Slab10% of BSP + 20 % of Allied charges#On Casting of 1st Floor Slab10% of BSP + 20 % of Allied charges#On Casting of 4th Floor Slab10% of BSP + 20 % of Allied charges#On Casting of 8th Floor Slab10% of BSP + 20 % of Allied charges#On Casting of 12th Floor Slab10% of BSP + 20 % of Allied charges#On Casting of 14th Floor Slab10% of BSPOn Start of External Plaster10% of BSPAt the time of offer for Possession5% of BSP+ IFMS+ Registration charges+ Stamp Duty#

Know our Product: Payment plansDown Payment PlanDown Payment Plan (10% rebate)Booking Amount7.5% of BSP#Within 45 days from offer of Allotment77.5% of BSP +100% of Allied Charges#At the time of Possession5% of BSP+ IFMS+ Registration charges+ Stamp Duty#Allied Charges includes PLC + DC + CPC + Club Membership Charges.

Know our Product: Payment plansStagesClient's ContributionBank's Contribution At the time of booking `20 / `25 / `40 lacs as per sizeWithin 30 days of bookingTo complete 15% of COP*Start of Excavation No Pre EMI For 24 months35% of COP*On casting of Second floor Slab 35 % of COP*On laying Internal Marble Flooring 10 % of COP* On Possession 5 % of COP* (From the Customer/ Bank)PBIC + IFMS Stamp Duty + Registration Charges + Administrative Charges + All other applicable charges

PBIC: Power Back-up Installation ChargesIFMS: Interest Free Maintenance SecurityCOP: Cost Of PropertyOn Total Investment - 2yearsProperty Appreciation @Property Value + ReturnAppreciation on propertyReturn on Investment5%51,870,652 4,822,44268%8%54,877,032 7,828,822111%10%56,928,334 9,880,124140%12%59,017,275 11,969,065170%

Plot Size290Sq. Yd.Basic Sales Price45,381,000 Development Charges1,667,210 Cost of Property47,048,210 15% of COP investment value7,057,232

No Pre-EMIs for 24 Months

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

Know our Product: Payment plansStagesPaymentAllied ChargesOn Booking25% of BSPWithin 12 months of booking25% of BSP100% of Allied Charges (PLC, DC & Club membership)On offer of possession50% of BSPIFMS + PBIC + Stamp Duty + Registration charges & Administrative Charges + all other applicable charges.

PBIC: Power Back-up Installation ChargesIFMS: Interest Free Maintenance SecurityCOP: Cost Of PropertyOn Total Investment 3 yearsProperty Appreciation @Property Value + ReturnAppreciation on propertyReturn on Investment5%54,464,184 7,415,97433%8%59,267,195 12,218,98554%10%62,621,168 15,572,95869%12%66,099,348 19,051,13885%

Plot Size290Sq. Yd.Basic Sales Price45,381,000 Development Charges1,667,210 Cost of Property47,048,210 25% of COP11,762,052.50 25% of COP11,762,052.50

*Average Rate of Return Annually 10-15% in Gurgaon As per Industry ReportsSelf-Funding Payment PlanIllustration

Area Unit Conversion1 Acre43560 sq.ft1 sq. meter1.196 sq. yard1 acre4840 sq. yards1 sq. yard 9 sq. ft1 hectare2.47 acres

Disbursement of BrokerageOnly on BSP

Channel Partner Brokerage

How to Study Floor Plan

How To Study Site Plan

SpecificationsTypeStandardLuxurySuper LuxuryRoomsOil Bound DistemperPainted in pleasing shades of acrylic emulsion paint with velvet finishPlastered with POP and acrylic emulsion paintFlooring Vitrified Tiles/Ceramic TilesImported marble/hard woodImported marbleDoorsSeasoned hardwood frames with polished paneled doorsSeasoned hardwood frames with designer shutter (high and large)Teak wood panelled door/skin moulded doors with design

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