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- 1. REAL ESTATE DEVELOPMENT IN VASANT KUNJ, NEW DELHI GROUP MEMBERS: APURVA SINKAR, ANAMIKA, MANOHAR, TRISHA. CO-HUB RENTAL NEWLY DEFINED
- 2. TERI SAS campus at present has only one on-campus hostel for girls which cannot cater to the large number of students.A large number of students live nearby and far away from the institute. Students along with the staff members face lot of problems in searching accommodation nearby the institute. A provision of rental accommodation would help the students and staff members to tackle the problem smoothly with the help from the institute itself.A rental project based on analysis of market rate, questionnaire survey and financial analysis which was carried out for existing students and staff members and analysis has been done to know if the rental model is feasible and viable. AIM: To develop a profit making rental housing model for a period of 30 years inVasant Kunj Area. OBJECTIVES: To look at the construction costs, cost of debt, construction technology and rate of return. To make rental residential properties profitable and sustainable in terms of ensuring steady stream of incomes and raising capital for replacing/retrofitting the asset after the building ages. To find government support in terms of policy, legislation or financing for the project to be successful. ABOUTTHE PROJECT:
- 3. METHODOLOGY: SCOPE AND LIMITATIONS: The study so far is based on survey of students living in PG, Private hostel, rent etc. and not the hostellers. No sellable area is allowed. No purchase of FSI & TDR SAMPLE ANALYSIS PROJECT BRIEF&ASSUMP TIONS CONCLUSION PRIMARY & SECONDARY DATA COLLECTION QUESTIONNAIRE PREPARATION SCOPE AND LIMITATIONS AIM, OBJECTIVE LIMITATION SITE SELECTION RELEVANT DOCUMENTS- MASTER PLAN, PAR ETC.,WEBSITES. QUESTIONNAIRE SURVEY STUDENTS STAFFS
- 4. STUDY AREA: VASANT KUNJ Source of Image: maps.google.com Vasant Kunj is known for its green and gated colonies, its strategic location as it is close to the airport The entire area ofVasant Kunj is actually divided into four distinct regions.These regions, which are known as A, B, C and D are composed of a number of sub regions. Location:Vasant Kunj District: South Delhi State: New Delhi Area: 23.3099 Sq. km Population: 641,666 (as per the Census 2011) PROPOSED SITE
- 5. - ATM - Doctor - Medical - Market - Parks/Garden - CCD CHHATARPUR METRO INDIRA GANDHI INTERNATIONAL AIRPORT VASANTVIHAAR METRO BUS STOPS 24.4KMS CONNECTIVITY AND ACCESS:
- 6. 11% 13% 14%62% Total Percentage distribution of Staff and Students Admin Non admin Faculty Students 11% 89% Percentage distribution of student owners and tenants. Owner Tenant N=54 14% 86% Percentage Distribution of Staff owners and tenants Owner Tenant N=36 AVAILABLE RATES AND AREAS IN DIFFERENT WEBSITES: Serial No. Websites Category Area (Sq. Mts.) Minimum Rate (INR) Maximum Rate (INR) 1 Magic Brick 1BHK 65 21,000 30,000 Makaan 55-78 19,000 22,000 99 Acre 37-60 8000 21,000 2 Magic Brick 2BHK 102 30,000 40,000 Makaan 83-111 30,000 35000 99 Acre 102-111 20,000 43,000 3 Magic Brick 3BHK 153 40,000 74,000 Makaan 148-185 40,000 60,000 99 Acre 134-148 35,000 70,000 4 Makaan STUDIO 41 17,000 -
- 7. 76% 15% 9% EXPENDITURE % OF STAFF (MEDIAN) INCOME % OF STAFF (MEDIAN) Non-Admin Admin RENT % OF STAFF (MEDIAN) More than INR 1lakhs 76 % Faculty income 15% Admin income INR 30K 9% Non- Admin income INR 18K 71 % Faculty Exp. INR 90k 20% Admin Exp. INR 26K 9% Non- Admin Exp. INR 11K 62 % Faculty Exp. INR 23k 26% Admin Exp. INR 8K 12% Non- Admin Exp. INR 4K STAFF- Faculty 71% 20% 9% 62% 26% 12% INCOME, EXPENDITURE AND RENT OF STAFF:
- 8. 51% 43% Total % of other expenditure of student (median) Male student pay monthly rent in range of INR 11k Female student pay monthly rent in range of INR 12k Male student monthly expenditure in range of INR 7.5k Female student monthly expenditure in range of INR 5.5k Total % of rent of student (median) Total % future preference of students for rental apartments in Delhi Independent housing Sharing housing Future Building typology of students ofTERI SAS Preference of student for different types of dwelling units 48% 36% 16% Semi-furnished Unfurnished Furnished 42% 29% 17% Shared PG Single room Shared rom 52% 48% 69% 31% Female studentMale student Inferences: From the above figure, it shows the percentage of money spent on rents by the students, hence we have strategized to curtail the
- 9. SPACE AND AMENITIES REQUIREMENT: Inferences: From the above figure, it shows the preference of spaces in future accommodation, the common amenities required and shared by both Staff and Students and the parking accommodation.The strategy is incorporated in our Rental project. 54% 46% 35% 29% AC LTM/ 2Wheeler WI-FI 61% 39%Bicycle Student Staff Required Shared amenities in Future residence of Staff and Student of TERI SAS Bedroom Toilet A Kitchen/Balcony Drawing Room Dining Room Utility Store room Order of declining room nos in current dwelling unit Order of expected room nos in future dwelling unit Bed Room Toilet A Kitchen Drawing Room Balcony Dining Room Toilet C Store/Utili ty Servant No. of room Preference of student for dwelling units
- 10. Location TERI University,New Delhi Target Clients Faculty, Staff, Students Project Size 258 Units Dwelling Density 200DU/Ha- 258 units for 1.29 Ha Land Area 12972 Sqm Composition Co-Hub-1234,2134, DU- 12345,213456,2134,1234 Assumptions Land Area (sqm) 12972 Sqm FAR 2 Built Up Area (sqm) 25927.90 Land Cost 2073444480 Construction Cost 34,70,90,384 Rentable Area Distribution (sqm) Residential 16197.75 Commercial 2323.00 Total Area 18520.75 CoHub: 1R2K3B4L Co-Hub: 2R1K3B4C R 1L2R3R 4K5B 2L1R3R 4R5B6K 2R1K3 B4CR 1R2 K3B 4L 1R2 B Rentable Area (sqm) 30 70 110 130 50 35 20 Number of Units 100 43 30 15 30 35 05 Rent 18000 16000 23000 35000 12000 5000 1500 Project Life Cycle Construction Period 36 Months Rental Period 360 Months Expected Returns IRR -8% Net PresentValue Discount Rate 15% NPV(INR Cr) (2,18,79,98,503) Coding for Co Hub: 1234 : 1- Room,2- Kitchen,3- Bath room,4- Living room 2134 : 2- Room,1- Kitchen,3- Bath room,4- Common room 12345 : 1- Living Room, 2- Room, 3- Room, 4- Kitchen, 5- Bath Room 213456 : 2- Living Room, 1- Room, 3- Room, 4- Room, 5- Bath,6- Kitchen 12 : 1- Room, 2- Bath Ideally Expected Returns in an Affordable Housing Project Typical pre-tax IRRs achievable in an affordable housing project, where a developer has himself purchased land, can range from 4045%, with gross profit margins of 1520% . Rental Housing Project:
- 11. 159840 18578 5 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 Cost of land Construction rate Approval Cost INRPerSqmt Construction Cost/Sqm. 4.93% 6.80% 18% 5% 15% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% Inflation rate Recurring deposit rate Construction Loan interest rate Rent increase rate NPV discount rate Percentageofrates Factors Affecting Gross Margin/Profit CUMULATIVE NET CASH FLOW & FACTORS AFFECTING PROJECT : 0 5 10 15 20 25 30 1 2 3 4 5 INRINCrores Years Cash Flow OUTFLOW INFLOW Other Miscellaneous Costs (BUA) Consultants Rate 5,185,580 Legal Charges 2,559,796 Approval Cost 129,640 Marketing Cost 2,559,796 Expected Returns IRR -8%
- 12. 159840 18578 5 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 Cost of land Construction rate Approval Cost INRPerSqmt Construction Cost/Sqm. CUMULATIVE NET CASH FLOW & FACTORS AFFECTING PROJECT : Other Miscellaneous Costs (BUA) Consultants Rate 5,185,580 Legal Charges 2,559,796 Approval Cost 129,640 Marketing Cost 2,559,796 0 5 10 15 20 25 30 1 2 3 4 5 INRINCrores Years Cash Flow OUTFLOW INFLOW 5% 7% 10% 7% 15% 0% 2% 4% 6% 8% 10% 12% 14% 16% Inflation rate Recurring deposit rate Construction Loan interest rate Rent increase rate NPV discount rate Percentageofrates Factors Affecting Gross Margin/Profit Expected Returns IRR -3%
- 13. INTERVENTIONS : Loopholes in By-Laws: Description of what constitutes LIG, MIG AND HIG has not been defined clearly. Density of dwelling units have been specified in general according to area of land and not pertaining to area specified for LIG, MIG & HIG as per NBC for each of them. Higher rate of returns and shorter breakeven period can be achieved in an affordable housing project, by adopting the following measures: Shortening the time period of construction Lowering the cost of construction (below INR 1,000 per sq. ft). Reducing the interest rate of construction loan from 18% to 10% Change in the rental increment % from 5% to 7% per year. Revising density of dwelling to twice the current i.e. to 500 as per variations in size of DUs. (The regulation of DUs density restricts size of dwelling units which affects product mix specially for rental housing having multiple combination of shared units and 2 rooms or 3 rooms DUs.) Rent to be revised as per current prevailing market price. Policy Framework
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