Prospects of Real estatedevelopment in PunjabPresented to FICCI : Presented by
Chesterton Meghraj
4TH October , 2005 Prospects of Real estate development in Punjab Presented to FICCI
Slide2 : Contents We need International benchmarking…..
Which Indian cities have done well……
Where does Punjab cities figure……….!!!????
What cities need to do in order to attract investments…..
What is the Way Ahead for Punjab cities
Slide3 : We need International benchmarking….. London – Financial Hub of Region, Historical city
Singapore – Transit hub – emerging Knowledge Hub of region
New York – Financial capital of world
Los Angeles – Hollywood and Silicon Valley
Vancouver – Tourism sector
Paris – Fashion Capital of world
Sydney – Emerging city in Asia-Pacific
Dubai – Trade hub, Transit Hub, Tourism
Slide4 : London
Historical city ( capital of the Raj)
Financial Hub – world city
Excellent infrastructure and transportation networks
Major service sector dominated
Matured real estate market
Many from overseas (including Indian) invest in UK realty.
London West End – Highest occupancy cost in the world (USD 178.67/sft/yr)
London city _ 4th highest occupancy cost (USD 119.11/sft/yr)
We need International benchmarking…..
Slide5 : Singapore
Historical city yet fully modern now
Transit hub for Asia Pacific
Excellent infrastructure and transportation networks
Attracting services sector – Finance, IT, Biotech, high-end manufacturing
Futuristic outlook reflected in Planning
Many regional HQs of MNCs getting relocated here
Matured real estate market
We need International benchmarking…..
Slide6 : New York
Financial Hub of the world – world city
Excellent infrastructure and transportation networks
Major service sector dominated
Matured real estate market
Many from overseas (including Indian) invest in UK realty.
MONEY DRIVES THIS CITY
Manhattan 27th most expensive in occupancy cost (USD 53.69/sft/yr)
We need International benchmarking…..
Slide7 : Los Angeles
Modern city – of rich and famous
Hollywood
Excellent infrastructure and transportation networks
Major service sector dominated – Silicon Valley nearby
Matured real estate market
Many overseas investors across all nationalities.
We need International benchmarking…..
Slide8 : Vancouver
Emerging city of prominence in Canada
Tourism – natural beauty
Excellent infrastructure and transportation networks
Voted as the Most livable city
Emerging real estate market
Many from overseas have second homes here – mainly Chinese, Japanese, from Taiwan and USA and Europe.
We need International benchmarking…..
Slide9 : Paris
Historical and very traditional city ( capital of France)
Fashion capital of world – also center of art and culture
Traditional yet modern
Major service sector dominated
Matured real estate market
We need International benchmarking…..
Slide10 : Sydney
New modern city of Australia
Tourism oriented as well
Excellent infrastructure and transportation networks
Major service sector dominated
Emerging real estate market
We need International benchmarking…..
Slide11 : Dubai
Ancient trading outpost which got transformed by OIL economy
Financial Hub – of the middle east
Transit hub – midway between Europe and Asia
Jebel Ali Free Trade Zone – gave boost to the economy
Emerging real estate market – The Palms, Arabian Nights etc high-end residential developments along with stay permits
Tourism and retail as drivers
Many investors from Europe, Asia and SE Asia into realty
14th most expensive in occupancy costs (USD 65.40/sft/yr)
We need International benchmarking…..
Slide12 : International Benchmarking….. Conclusion
We see from the above that each of these cities has specific predominant function at GLOBAL or national level.
They have risen because of a core economic driver, which has risen to prominence historically or through their conducive policies and positioning.
We need to frame the same for the cities of Punjab.
Slide13 : Which Indian cities have done well….. KARNATAKA = Bangalore
ANDHRA = Hyderabad
TAMIL NADU = Chennai
WEST BENGAL = Kolkata
CAPITAL = NCR
MAHARASHTRA = Mumbai andamp; Pune
HOW IS PUNJAB REPRESENTED ….. Cities of Punjab
may not be competing
with these now…. It is the cities which drive the STATE….STATES are known because of the cities.
Slide14 : Where does the Punjab cities figure … Chandigarh / Mohali region
Ludhiana
Jalandhar
Amritsar
Patiala
Slide15 : Chandigarh/Mohali region Real Estate Boom in Cities of Punjab… Emerging Knowledge andamp; Healthcare Hub
Major developers – MGF, DLF, Unitech, Eldeco, Parsvnath, Sahara, ATS Greens, Omaxe
Residential Land Rate in Chandigarh – Rs. 25,000-30,000 per sq.yd.
Panchkula – Rs. 13,000-15,000 per sq.yd.
Mohali – Rs. 15,000-17,000 per sq.yd.
Land value has increased upto 300% in the past 3 years.
Slide16 : Real Estate Boom in Cities of Punjab… Ludhiana Manufacturing, Textile Hub
Major developers– DLF, Ansals, Aerens, Omaxe, Todayhomes, Ponty Chaddha, Northern Housing, Chhabra Land and Housing Ltd., Munshi Promoters and Developers, Basant Estates and Housing Ltd.
Commercial land rate – Ferozepur Road – Rs. 40,000-60,000 per yd. Jallandhar road – Rs. 20,000-30,000 per sq.yd.
The commercial land rate has increased to approx. 200% in last one year.
Major developers in Residential sector – Ansal, The Residential Land value in the past decade has increased by more than 500%.
Slide17 : Real Estate Boom in Cities of Punjab… Major developers in Residential Sector – Ansal, Star City, DLF
The commercial land rate on Ludhiana road and central part of the city – Rs. 30,000-Rs. 45,000 per sq.yd.
The land rate has increased to approx. 80% in past one year.
Capital price of retail space – Rs. 8,000 – 13,000 per sq.ft.
The residential land value increased to approx. 300% in last 6 to 8 years. Jalandhar
Slide18 : Real Estate Boom in Cities of Punjab… Amritsar Amritsar, the Sikh holy city
Amritsar meaning 'Pool of Nectar', is named after the sacred pool around which the Sikh's Golden Temple is built
Strong Tourism profile.
In real estate residential sector plotted developments are coming up by Ansal and other local developers.
Today Homes and Rapmedia are coming up with Mall projects.
Commercial land rate – Rs. 35,000 – 50,000 per sq.yd.
Commercial land auctioned on Mall road – Rs. 78,500 per sq.yd.
Slide19 : Real Estate Boom in Cities of Punjab… Patiala Patiala is a famous seat of learning
It hosts Punjabi University, a government medical college, Thapar Institute of Engineering and Technology, Mohindra College, M M Modi college, and Bikram College.
In real estate residential sector- no private developers in the city
There is scope for private developers
Omaxe has pitched in for Mall development in the city
Commercial land rate – Rs. 30,000 – 45,000 per sq.yd.
Slide20 : What cities need to do in order to attract investments….. BESIDES FINANCIAL POLICY FRAMEWORK – MANAGEMENT OF LAND IS A PRECURSOR OF GROWTH FOR ANY REGION
ITS CONTRIBUTION IS MANIFOLD IN ALL SYNERGISTIC AREAS OF GROWTH
Slide21 : What cities need to do in order to attract investments….. Give a different identity to each city
Have RIGHT economy driver in place
Have INTL. level Planning and infrastructure – physical and social
Antiquated Land Policies need to change
Effective implementation
Conducive policies
Get an Image Makeover
GET IN A CHAMPION
Slide22 : Action Plan… Chandigarh/Mohali – To be promoted as Knowledge and Healthcare destination
Jallandhar – To be developed as the Agro based Industrial Hub
Ludhiana – To be developed as manufacturing Hub
Patiala – To be developed as the Education and Cultural Hub
Amritsar – To be developed as the Trade and Commercial Hub of the state keeping intact the Tourism destination
BUILD ON THEIR TRADITIONAL STRENGTHS….GIVE EACH ONE OF THEM A NEW IDENTITY
Slide23 : Action Plan… BANGALORE HAD IT BY LUCK….
GURGAON HAD IT BY LUCK…..
HYDERABAD HAD TO WORK FOR IT……CHANDRABABU NAIDU CREATED CYBERABAD
MUMBAI MISSED IT TOTALLY……
CHENNAI IS CATCHING UP….
WILL MOHALI MAKE IT……
Slide24 : Thank You