Getting the perfect plot

PLAN PERFECT From focusing on micro markets to mapping locations, realty firms are taking on detailed research to decide if they should build a tower or a township

A lot of thought goes into everything, from the shapes of the flats in a tower to the number of offices on each floor, and most of the decisions are determined by local demographics. A SHANKAR, COO for strategic consulting at realty advisory JLL India

How big should the flats be? Shops or office spaces? How much room for each? It takes months of planning and detailed market research to decide what kind of project should come up on a plot.

“A lot of thought goes into everything from the shapes of the flats in a tower to the number of offices on each floor, and much of the decisions are determined by local demographics,” says A Shankar, COO for strategic consulting at realty advisory JLL India. “Sometimes, market analysis and consultations with realty advisors are followed by a survey of potential target customers.”

Once a location has been identified, it’s all about meeting unmet needs of the micro market.

“A plot we acquired in Mazgaon, for instance, will feature an integrated development project with both trading spaces and homes,” says Rahul Shah, CEO of Sumer Group. “We decided that because the plot is close to Crawford market and Mustafa Bazaar, mobile phone sellers from there can use our well-built spaces to display their products, and get good parking spaces. Along with 1,800 shops, the 10-acre plot will have four residential towers with one, two, three and four-bedroom flats,” he says.

In an upcoming project by Transcon Developers close to Bandra-kurla Complex (BKC), there will be office spaces with an area of 500 sq ft each. “Our target customers are ancillary companies; they need and can afford only smaller spaces,” says Aditya Kedia, managing director of Transcon.

“The proximity to BKC will also help them expand their business. Imagine getting an office space for Rs 2.5 crore right outside BKC where property prices are exceptionally high.”

Once configuration is decided, developers choose amenities. “We call it the Happiness Quotient factor, and this can determine the sustainability of a project,” says Shankar.

“The idea is to find a way to make the best use of space availa- ble while offering enough for sale and resale.”

Because maintenance of landscaped gardens and sports clubs can become complicated and burdensome for middle-class residents, the trend is towards selfsustained amenities such as jogging tracks and play areas.

The Lodha group is developing an integrated township, called Palava City, spread over 4,500 acres near Dombivli, and here the amenities are a big part of the pitch. “For projects like these, a school, medical centre and shopping centre are expected to be part of it, because they are massive and far from city’s centre,” says Mudassir Zaidi, an executive director at real-estate advisory Knight Frank India.

“These amenities aim to create a culture, a sense of community among the people living here.”

Real-estate developer Ajmera Realty’s upcoming project in Bengaluru, meanwhile, is a single building with a rooftop swimming pool.

“Since we had a small plot, we could only plan one tower,” says Dhaval Ajmera, director of Ajmera Realty. “We have a swimming pool on the rooftop,” he adds. CHANDIGARH: The Jalandhar housing market is in the midst of a slowdown and it is a good time for housing hunting. The best price segment to explore for a home buyer is the mid-price segment of ₹40 lakh to ₹60 lakh.

While there are properties available in all prices ranges in different housing categories, but it is the mid-price segment where most of the supply is concentrated, particularly in the multistorey apartment segment.

“The Jalandhar housing market is driven by the non-resident Indian (NRI) investor. But, currently in the sluggish market conditions, it is the local enduser who is driving the market and generating demand both in the primary and secondary markets. The local end-user demand is mainly in the mid-price segment, whether it is plots or built-up residential properties,” said, RS Sandhu, 45, a local real estate consultant.

For buyers, in the plotted segment, options are available in all price brackets, with price ranging widely from ₹8,000 per sq yard to ₹80,000 per sq yard. Most of the supply though is concentrated in the mid-price range of ₹20,000 per sq yard to ₹40,000 per sq yard. “200 sq yard to 500 sq yard is available in the mid-price segment. The bigger sized plots are available in the periphery while the smaller ones are available in older developed areas in this price range,” said Vinay Chugh, 56, a local realtor.

Jalandhar is one of the few realty destinations in the state where the apartment culture has taken roots. Both because of the NRI influence and relatively cheaper prices have allowed builders to attract buyers to the apartment segment. For midpriced segment home buyers, apartment projects are also an attraction option in the city.

“Apartments are available in all price segments and sizes. Currently, most of the supply is in the secondary segment, though builders also have large unsold inventory with them,” said Sandhu.

Flats are available in all price ranges starting from around ₹15 lakh in the mid-price segment, 2-BHK (bedroom, hall, kitchen) and 3-BHK. In terms of sizes, the buyer can choose from budget apartments to penthouses.

Supply expansion in the segment slowed downed in the last couple of years. The end-user demand is mainly in the midprice segment. The major chunk of the apartment supply is catering to this price segment. Though, higher priced, superluxury apartments also form part of the supply creation. On an average the apartment sizes vary between around 1,200 sq ft to 6,000 sq ft. The average prices in the segment vary between ₹2,200 per sq ft to ₹2,500 per sq ft. Prices, currently, are relatively stable.

Price decline ranged from 20% to 50% depending on location in the last six years. The absence of the NRI investor also impacted the local investor sentiment. The local end-user demand, though concentrated in the plotted segment, isn’t enough to drive fast paced price growth, but it is keeping the transactions going on in the housing market.

So, when the NRI investor started to become net seller from net buyer, the local investor lost opportunities to sell properties at higher premium. These market dynamics have consistently dragged down plot prices. “The mid-price segment is an investment friendly option also. With relatively better end-user demand allowing greater number of transactions, it is easier to exit this segment than the more expensive segments. Also, prices in this segment have proved to be more resistant market fluctuations than segments,” said Chugh.

Local realty experts, say the market is expected to remain stable in coming months, and it is still a good time for the buyer to explore the mid-price segment in the city.

SEGMENT HOME BUYERS CAN CHOOSE FROM BOTH PLOTTED AND APARTMENT CATEGORIES IN JALANDHAR