STUDY OF REAL ESTATE DEVELOPMENT TRENDS IN TERAI REGION OF UTTARAKHAND

“STUDY OF REAL ESTATE DEVELOPMENT TRENDS

IN TERAI REGION OF UTTARAKHAND”

Submitted in partial fulfillment of the requirements for the degree of

Bachelor of Technology (Hons.)

In

Civil - Construction

by

Ayush Agrawal (UC 0208)

under the guidance of

Prof. Reshma Shah (Head of Department, SBST, CEPT University)

School of Building Science & Technology

CEPT University

Kasturbhai Lalbhai Campus

Navrangpura, Ahmedabad – 380009

Website: www.cept.ac.in Email: [email protected], [email protected]

YEAR 2011

“STUDY OF REAL ESTATE DEVELOPMENT TRENDS

IN TERAI REGION OF UTTARAKHAND”

Submitted in partial fulfillment of the requirements for the degree of

Bachelor of Technology (Hons.)

In

Civil - Construction

by

Ayush Agrawal (UC 0208)

under the guidance of

Prof. Reshma Shah (Head of Department, SBST, CEPT University)

School of Building Science & Technology

CEPT University

Kasturbhai Lalbhai Campus

Navrangpura, Ahmedabad – 380009

Website: www.cept.ac.in Email: [email protected], [email protected]

FACULTY OF TECHNOLOGY SCHOOL OF BUILDING SCIENCE & TECHNOLOGY

UNDER GRADUATE PROGRAMME IN TECHNOLOGY (CIVIL - CONSTRUCTION)

STUDENT NAME: AYUSH AGRAWAL (UC 0208)

Thesis Title: "STUDY OF REAL ESTATE DEVELOPMENT TRENDS IN TERAI REGION OF UTTARAKHAND"

APPROVAL

The following study is hereby approved as a creditable work on the approved subject carried out and presented in the manner, sufficiently satisfactory to warrant its acceptance as a pre-requisite to the degree of Bachelor of Technology (Hons.) Civil- Construction for which it has been submitted.

It is to be understood that by this approval, the undersigned does not endorse or approve the statements made, opinions expressed or conclusion drawn therein, but approves the study only for the purpose for which it has been submitted and satisfies him/her to the requirements laid down in the academic programme.

Signature of the Guide

(Prof. Reshma Shah)

Dean,

Faculty of Technology

STUDY OF REAL ESTATE DEVELOPMENT TRENDS IN TERAI REGION OF UTTARAKHAND

FOREWARD

This dissertation has been conducted at School of Building Science & Technology, CEPT University, Ahmedabad as a part of requirements to be

satisfied for the degree of Bachelor of Technology in Civil – Construction (Hons.). It is an effort of six months carried out through the tenth semester

from December 2012 to May 2013. This documentation has been a sole endeavour, apart from diminutive data which is based on the study of others,

and preeminent has been done to endow with references to these sources.

This study comprises of 3 reviews out of which the first review is about the literature referred to conduct the study. This is followed by the process of

data collection through surveys, interviews, discussions, printed documents/reports etc. from all the related sectors of Real Estate Market. Analysis of

this collected data is then done to develop authentic outcomes and important recommendations.

This research work is about comprehending the trends in the real estate market of ‘Terai’ region of ‘Uttarakhand’ and suggesting the best possible

approach for condensing the adverse effects due to government policies, unguided development etc which will help in analyzing the factors affecting

the built environment of the ‘terai’ territory.


ACKNOWLEDGEMENT

I feel immense pleasure in articulating my propounded regards and deep sense of gratitude to many people who played a substantial role in various

forms in the successful completion of this dissertation. I have now the opportunity to convey my gratitude for all of them.

I would like to acknowledge my respected faculties for their eager interest that enabled me to complete this research. This thesis would not have been

possible without the support of Prof. Reshma Shah for her constructive criticism and being a virtuous guide who patiently resolved all my queries and

providing adequate recommendations. I am extremely gratified with Thesis Committee Chairman, Prof. C. B. Shah, for his unfailing support and

providing valuable inputs during the monthly viva sessions which helped me in finishing work at scheduled hiatus. I feel a deep sense of thankfulness

towards the college administration and library staff for their help and patience.

It would not have been easy without the support and cooperation of Mr Sushil Kumar (Patwaari Rudrapur), Mr. Mukesh Kumar (Patwaari Sitarganj)

and Mr.Parmanand (Patwaari Gadarpur) who provided the mandatory data. I would also want to express my thanks to all the stakeholders; real estate

brokers and developers who enhanced my outlook for the subject.

Past 5 years in SBST is made delightful in large part due to the numerous friends that became a part of my life. I am grateful for the time spent with

friends especially Bhogi, Quresh, Loli, Nazneen & Nehal without their constant support it would not have been possible for me to complete this thesis

successfully. And most of all for my supportive and patient listener friend Vidushi, whose faithful support, encouraged me during all the stages of this

work.

I express my love and gratitude to my beloved family for their constant support & endless love. I am thankful to my parents for giving me the life I

always demanded. I can’t express my appreciation for my grandmother, Tauji Taiji whose unconditional love has been my greatest strength. The

constant love and support of my brother and niece is sincerely acknowledged. I want to specially mention my brother Abhishek and Sister –in-law

Dhara, who always motivated and directed me towards the correct path.

Finally I would like to thank everyone who is important to the successful realization of thesis, as well as expressing my apology that I could not

mention personally one by one.

Lastly, I express my gratefulness to the omnipresent almighty for giving me inner strength and help me focus on my targets.

Ayush Agrawal


LIST OF ABBREVIATIONS

CBD Central Business District

FDI Foreign Direct Investment

HEC Hectares

IIE Integrated Industrial Estate

IT’S Information Technology

ME Margin of Error

NH National Highways

NCR National Capital Region

PWD Public Works Department

SEZ Special Economic Zone

SH State Highways

SIDCUL State Industrial Development Corporation of Uttarakhand Limited

SQM Square meters

SQFT Square feet’s

UP Uttar Pradesh

U.S.NAGAR Udham Singh Nagar


TABLE OF CONTENTS

Ayush Agrawal – UC 0208 School of Building Science & Technology, CEPT University

a

Table of Contents 1 INTRODUCTION .......................................................................... 1

1.1 OVERVIEW ............................................................................ 1

1.2 BACKGROUND ..................................................................... 1

1.3 NEED ....................................................................................... 1

1.4 OBJECTIVES .......................................................................... 2

1.5 SCOPE ..................................................................................... 2

1.6 JUSTIFICATION OF THE SELECTED REGION ................ 3

1.7 METHODOLGY ..................................................................... 3

1.8 LIMITATIONS ........................................................................ 3

1.9 RESEARCH TIMELINE ......................................................... 3

2 LITERATURE STUDY ................................................................. 4

2.1 ETYMOLOGY ............................................................................. 4

2.2 HISTORY ..................................................................................... 4

2.1.1 Geography ........................................................................ 5

2.3 SUMMARY OF SOCIO-ECONOMIC INDICATORS OF U.S.NAGAR ....................................................................................... 5

2.4 SELECTED TEHSILS .................................................................. 5

2.1.2 Rudrapur Tehsil ................................................................ 5

2.1.3 Sitarganj Tehsil ................................................................. 6

2.1.4 Gadarpur Tehsil ............................................................... 6

2.5 INDUSTRIAL INVESTMENTS ................................................. 7

2.6 REAL ESTATE INDUSTRY ...................................................... 8

Assessing the Prices in Real Estate Industry .................................. 8

2.1.5 Magnet theory .................................................................. 8

2.7 FACTORS TO DETERMINE THE PROPERTY VALUE ....... 10

2.1.6 Estimating the Inherent Value of the Asset according to its basic characters ........................................................................ 10

2.1.7 Value according to Present and Expected Future Cash flows on the asset ......................................................................... 10

2.1.8 Future Risk in generating Cash flows ............................ 10

2.1.9 Comparable Market Value Analysis .............................. 10

2.1.10 Property grading as per following Data points ............... 10

3 DATA COLLECTION & OBSERVATION ............................... 11

3.1 INTRODUCTION ................................................................. 11

3.2 CRITERIA FOR SELECTING SURVEY SAMPLES ......... 11

3.2.1 Required Sample Size .................................................... 12

3.2.2 Division of Required Sample ......................................... 12

3.2.3 Stakeholder Survey ........................................................ 12

3.2.4 Household Survey .......................................................... 12

3.3 PRIMARY DATA COLLECTION: major findings ............. 17

3.3.1 Questionnaire for Households ........................................ 17

LOCATION SELECTION IN RUDRAPUR TEHSIL ................. 17

LOCATION SELECTION IN SITARGANJ TEHSIL .................. 17

3.3.2 Field Surveys .................................................................. 20


TABLE OF CONTENTS


b

3.3.3 Discussions with Stake holders ...................................... 20

3.4 Secondary Data Collection: major findings ........................... 26

3.4.1 Collection of Circle Rates .............................................. 26

3.4.2 Collection of Allotment list ............................................ 28

3.5 Overall Observations ............................................................. 29

4 DATA ANALYSIS ...................................................................... 36

4.1 METHODOLOGY FOR DATA ANALYSIS ....................... 36

4.2 RUDRAPUR TEHSIL ANALYSIS ...................................... 36

4.2.1 Rudrapur tehsil Circle vs. Actual Property rates ............ 36

4.2.2 Rudrapur tehsil Circle vs. Actual Rental rates ............... 37

4.2.3 Prices against Travel Time- Rudrapur tehsil .................. 38

4.2.4 Purchase Price increase (in rupee) - Rudrapur tehsil ..... 38

4.2.5 Rent increase- Rudrapur tehsil ....................................... 38

4.3 SITARGANJ TEHSIL ANALYSIS ...................................... 39

4.3.1 Sitarganj tehsil Circle vs. Actual Property rates ............. 39

4.3.2 Sitarganj tehsil Circle vs. Actual Rental rates ................ 40

4.3.3 Prices against Travel time- Sitarganj tehsil .................... 41

4.3.4 Price increase (in rupee) - Sitarganj tehsil ...................... 41

4.3.5 Rental Increase- Sitarganj tehsil ..................................... 41

4.4 GADARPUR TEHSIL ANALYSIS ...................................... 42

4.4.1 Gadarpur tehsil Circle vs. Actual Purchase rates ........... 42

4.4.2 Gadarpur tehsil Circle vs. Actual Rental rates ............... 43

4.4.3 Prices against Travel time- Gadarpur tehsil .................... 44

4.4.4 Price increase (in rupee) - Gadarpur tehsil ...................... 44

4.4.5 Rental increase- Gadarpur tehsil ..................................... 44

4.5 REASON FOR SELECTING LOCATION ........................... 45

4.6 LOCATION ATTRACTIVENESS INDEX .......................... 46

5 CONCLUSION ............................................................................. 47

5.1 CONCLUSION ...................................................................... 47

5.2 RECOMMENDATIONS ....................................................... 48

FUTURE SCOPE OF STUDY ......................................................... 48

BIBILIOGRAPHY ................................................................................ 49

ANNEXURE ........................................................................................... i


TABLE OF CONTENTS


c

LIST OF TABLES

Table 1-1Research Timeline ................................................................... 3 Table 2-1 Overview U.S.Nagar .............................................................. 4 Table 2-2 Socio Economic Indicators (U.S.Nagar) ................................ 5 Table 2-3 of Sitarganj TehsiL.................................................................6 Table 2-4 Demographics of Rudrapur Tehsil ......................................... 6 Table 2-5 Demographics of Gadarpur Tehsil ........................................ 7 Table 3-1Recommended sample size for a given population size, level of confidence, and margin of error ....................................................... 12 Table 3-2 Division of Survey samples ................................................. 12 Table 3-3Reason for selecting location in Rudrapur Tehsil ................. 17 Table 3-4Reason for selecting location in Sitarganj Tehsil ................. 17 Table 3-5 Reason for selecting location in Gadarpur Teshil ............... 17 Table 3-6 Rudrapur tehsil price increment ........................................... 18 Table 3-7 Sitarganj tehsil price increment ........................................... 18 Table 3-8 Gadarpur tehsil price increment .......................................... 18 Table 3-9 Rudrapur tehsil Rental increment ........................................ 19 Table 3-10 Sitarganj tehsil Rental increment ....................................... 19 Table 3-11 Gadarpur tehsil Rental increment ...................................... 19 Table 3-12 Price against Travel Time .................................................. 20 Table 3-13 Price against Travel Time .................................................. 20 Table 3-14 Price against Travel Time .................................................. 20 Table 3-15 Rudrapur Actual Purchase Rates ....................................... 24 Table 3-16 Sitarganj Actual Purchase Rates ........................................ 24 Table 3-17 Gadarpur Actual Purchase Rates ........................................ 24 Table 3-18 Rudrapur Actual Rent Rate ................................................ 25 Table 3-19 Sitarganj Actual Rent Rates ............................................... 25 Table 3-20 Gadarpur Actual Rent Rates .............................................. 25

Table 3-21 Rudrapur Circle Purchase Rates ........................................ 26 Table 3-22 Sitarganj Circle Purchase Rates ........................................ 27 Table 3-23 Gadarpur Circle Purchase Rates ....................................... 27 Table 3-24 Rudrapur Circle Rent Rates ............................................... 27 Table 3-25 Sitarganj Circle Rent Rates ............................................... 28 Table 3-26 Gadarpur Circle Rent Rates .............................................. 28 Table 3-27 Rudrapur Circle vs. Actual Property Rates ....................... 30 Table 3-28 Rudrapur Circle vs. Actual Rental Rates ........................... 31 Table 3-29 Sitarganj Circle vs. Actual Property Rates ........................ 32 Table 3-30 Sitarganj Circle vs. Actual Rental Rates ........................... 33 Table 3-31 Gadarpur Circle vs. Actual Property Rates ....................... 34 Table 3-32: Gadarpur Circle vs. Actual Rental Rates ......................... 35


TABLE OF CONTENTS


d

LIST OF CHARTS

Chart 2-A Magnet Theory ...................................................................... 8 Chart 2-B Parameters influencing spatial mobility ................................ 9 Chart 3-A Work Breakdown for Data Collection ................................ 11 Chart 3-B Rudrapur Migratory population Distribution ...................... 28 Chart 3-C: Sitarganj Migratory population Distribution ...................... 29 Chart 3-D: Gadarpur Migratory population Distribution .................... 29 Chart 4-A: Rudarpur tehsil circle vs. Actual Purchase Rate ................ 36 Chart 4-B Rudrapur tehsil Circle vs. Actual Rent Rates ...................... 37 Chart 4-C Prices against Travel Time-: Rudrapur tehsil ...................... 38 Chart 4-D Purchase Price Increase- Rudrapur tehsil ........................... 38 Chart 4-E Rent Price Increase- Rudrapur tehsil ................................... 38 Chart 4-F Sitarganj tehsil Circle vs. Actual Purchase Rates ................ 39 Chart 4-G Sitarganj tehsil Circle vs. Actual Rent Rates ...................... 40 Chart 4-H Prices against Travel Time-: Sitarganj tehsil ...................... 41 Chart 4-I Price Increase- Sitarganj tehsil ............................................. 41 Chart 4-J Rent Price Increase- Sitarganj tehsil .................................... 41 Chart 4-K Gadarpur tehsil Circle vs. Actual Purchase Rates .............. 42 Chart 4-L Gadarpur tehsil Circle vs. Actual Rent Rates ..................... 43 Chart 4-M Prices against Travel Time-:Gadarpur tehsil ..................... 44 Chart 4-N Price Increase- Gadarpur tehsil .......................................... 44 Chart 4-O Rent Price Increase- Gadarpur tehsil .................................. 44 Chart 4-P Reason for selecting residential with population density >300 souls/hectare ......................................................................................... 45 Chart 4-Q Reason for residential with population density between 200-300 souls/hectare .................................................................................. 45 Chart 4-R Reason for selecting Industrial including IIE townships ..... 45 Chart 4-S Reason for selecting Commercial location .......................... 45

LIST OF FIGURES

Figure 1-A Map of India viewing Uttarakhand ...................................... 2 Figure 1-B Map of Uttarakhand viewing Kumaon ................................. 2 Figure 1-C Map highlighting the terai region of Kumaon ...................... 2 Figure 2-A Map showing US.Nagar District with selected Tehsils ........ 5 Figure 2-B Map of Industrial Estates in Uttarakhand ........................... 7 Figure 3-A Rudrapur tehsil Establishment Pattern ............................... 13 Figure 3-B: Sitarganj tehsil Establishment Pattern ............................... 14 Figure 3-C: Sitarganj Tehsil Industrial Establishment Pattern ............. 15 Figure 3-D: Gadarpur tehsil Establishment Pattern .............................. 16 Figure 3-E: Rudrapur tehsil Circle rate division .................................. 21 Figure 3-F: Sitarganj tehsil Circle rate division ................................... 22 Figure 3-G: Gadarpur tehsil Circle rates division ................................. 23


CHAPTER 1: INTRODUCTION


1 INTRODUCTION 1 INTRODUCTION

1.1 Overview

1.2 Background

1.3 Need

1.4 Objective

1.5 Scope

1.6 Justification of the selected region

1.7 Methodology

1.8 Limitations

1.9 Research Timeline




1

1.1 OVERVIEW The real estate sector in India has come a long way from being dominated by a handful of players in the 90s to a mounting base of developers, investors and global stakeholders buoyed by the growing construction industry in the country. The sector has been undergoing corporatisation and professionalization and recognised as a key sector contributing to the economic development of the country.1

In the previous years, there has been a phenomenal growth of 30 % per annum in the real estate sector particularly in Tier II and Tier III cities of India. It is due to the unambiguous crystallization of Indian cities that persist to attract solemn speculation into real estate. The boom in this sector is due to rise in disposable income and growing middle class, escalating the demand for quality residential real estate, entry of professional players equipped with expertise in real estate development. This is so alluring that real estate has turned out to be a persuasive investment of the present era as average return of around 50% per annum is witnessed in last four years.2

At present this sector is the second largest employer in India, subsequent to the agricultural sector. The real estate sector magnets for huge investments, especially FDI since the government is committed to introducing FDI in multi brand retail, introduce changes in the existing SEZ policy to resurrect developer interest and expand the role of the private sector in infrastructure development.

1 Emerging trends in Real Estate Sector-Grant Thornton-CII Report 2012 2 A Review on Indian Real Estate: Trends, Challenges and Prospectus- Dr. Ashok Bansal, 2 Mr. Rajeev Sirohi and 3 Manish Jha.

This growth is chiefly noticeable in the newly formulated states as real estate sector is active in the establishment of SEZs and the building of townships hence spreading to the smaller cities to underpin growth.

1.2 BACKGROUND The ‘Terai’ connote belt of marshy grasslands, savannas, and forests located on the foothills of the Himalaya.3 In ‘Uttarakhand’ the ‘terai’ region is attributed with tremendous business as it serves as the supply base for the vicinity especially the hills. Hence escalation of trade is being witnessed since several years leading to which expansion of the cities in this belt is observed. Further the setting up of large integrated Industrial Estate under SIDCUL (State Industrial Development Corporation of Uttarakhand) has impelled the region into forefront of manufacturing activity and has transformed it into chief industrial hub. This bestowed location has immense potential of overall growth of the state.

Notwithstanding the benefits the scantiness lies in the execution by the government which needs to be rectified.

1.3 NEED It is requisite to recognize the reasons of the expansion rate along with shortcomings which cannot be anticipated just by focusing on certain factors hence study of the trends in the development becomes necessary. Therefore this study will demonstrate the effects due to government policies, unjustified market rates compared to circle rates, etc which will help in analyzing the factors affecting the built environment of the ‘terai’ territory.

3 http://en.wikipedia.org/wiki/Terai




2

1.4 OBJECTIVES To record the real estate growth trends by analyzing the factors affecting property prices of terai region of Uttarakhand.

1.5 SCOPE The scope of study and is limited to tehsils in the ‘terai’ region of ‘kumaon’ only. (Ref: Figure 1, 2& 3)456

4 http://www.uttaranchal.org/uttarakhand.html 5 http://en.wikipedia.org/wiki/Uttarakhand 6http://commons.wikimedia.org/wiki/File:Udham_Singh_Nagar_district.svg

Figure 1-A Map of India viewing Uttarakhand

Figure 1-C Map highlighting the terai region of Kumaon

Figure 1-B Map of Uttarakhand viewing Kumaon




3

1.6 JUSTIFICATION OF THE SELECTED REGION The terai was recognised as a ‘Mandi’ region due to surplus agricultural produce. The region has witnessed rapid growth in real estate after 2003 when the government proposed monetary incentives for the companies setting up their units in the IIE (Integrated Industrial Estate), Pantnagar and later in Sitarganj during 2005-2006.Swift industrialization, corporate arrangements and the encouraging role of government policies is extending the strong atmosphere for industrial expansion in this area and thus offering immense opportunity for real estate development.

Secondly the region has accessibility with various big commercial cities as the location makes it the gateway to Uttarakhand. The Region has emerged as a stronger centre for services like banking, finance, insurance etc. Thus, economic outlook for the selected region is very vivid.

1.7 METHODOLGY In the course of the objectives mentioned above, the study has been formulated as mentioned under:

• Literature study to recognize the factors affecting real estate development with supporting theories.

• Data collection by accumulating land rates on the basis of most recent Ready Reckoner (circle rates 2012) by approaching the departments and comparing them with the prevailing rates obtained from various property dealers to analyze the growth.

• Case studies and other field surveys are performed to accumulate an assortment of information about the topic.

1.8 LIMITATIONS • The study is limited to fastest developing tehsils of the ‘Terai’

region namely Rudrapur, Sitarganj and Gadarpur. • Circle rate are formulated biennially and is prepared during

2012.

1.9 RESEARCH TIMELINE

Table 1-1Research Timeline


CHAPTER 2: LITERATURE STUDY


2 LITERATURE STUDY

2 LITERATURE STUDY

2.1 Etymology

2.2. History

2.3 Udham singh Nagar at a glance

2.4 Summary of socio-economic indicators of U.SNagar

2.5 Selected Tehsil

2.6 Industrial Investments

2.7 Real Estate Industry

2.8 Factors to determine the Property Value




4

2.1 ETYMOLOGY According to Historians, hundreds of years ago village Rudrapur is established by a devotee of lord Rudra or by Hindu tribal chief called Rudra, which has passed through phases of development to take the shape of city Rudrapur. During the reigns of mughal emperor Akbar this land is handed over to King Rudra Chandra in 1588. The king established a permanent military camp to free terai from regular invasions.

2.2 HISTORY Till Independence, this region is full of forest land and is abandoned due to intricate climate. Marshy lands, intense heat, rains which lasted months, a place full of wild animals, diseases and no means of transportation disallowed the human race to form a colony here.

The history of development started with 1948, when the predicament of partition brought refugee problem with it. Immigrant from North West and eastern areas are re-established in 164.2 square km area under "UP NIVESH YOJANA". The first batch of immigrants came in December 1948. Being under thick forest the land is frequently visited by Kumaun tigers. The Government of UP leased out parcels of this land to farmers who had migrated from west Punjab (Pakistan) after partition. Daring and enterprising as they are, large number of them took land on lease notwithstanding the risks involved. The land is flat and fertile. Though there is no reckonable source of surface water, the water table is high and rainfall is good. Soon farming flourished, and the farmers started to market the surplus produce. In the wake of that, the region emerged as a Mandi. But that is not the end of the story. The agriculture surplus found its way to cottage and small scale industries. Diversification is a continuous process.

The terai region called ‘Udham Singh Nagar’ district with an area of 3055 square km is carved out of ‘Nainital’ district on 30th October 1995 and is named after ‘Saheed Udham Singh’.

Table 2-1 Overview U.S.Nagar

Udham Singh Nagar District at a glance

Description Numbers Name

Tehsils in Udham Singh Nagar

7 Khatima, Sitarganj, Kichha, Gadarpur, Bazpur, Kashipur, Jaspur

Blocks in Udham Singh Nagar

7 Khatima, Sitarganj, Rudrapur, Gadarpur, Bazpur, Kashipur, Jaspur

Nyaya Panchayats

27 E.g. Hirapur

Village Panchayats

326 E.g. Gularbhoj

Number Of Villages

669 E.g. Dineshpur

Nagar Palika Parishads

8 Jaspur, Kashipur, Bajpur, Gadarpur,. Rudrapur, Kichha,Sitarganj, Khatima

Nagar Panchayats

6 MahuaDabra, Mahuakheraganj, Kelakhera, Dineshpur,Sultanpur Patti, ShaktiGarh




5

Water is available at the depth of 10 to 20 metres. Due to its special geographical features, the district is a leader in agriculture in the country. The fertile land lends itself to different forms of agriculture giving rise to agriculture related activities and industries making this land a mechanized place which has resulted into prosperity all around. At present it is an industrial district and many industry related professions are prevalent here.

2.1.1 Geography The district is situated at 28 degree south- east, 30 degree north latitude, 78 degree and 81 degree east longitude of Kumaon.

2.3 SUMMARY OF SOCIO-ECONOMIC INDICATORS OF U.S.NAGAR7

Description 2011 2001 Actual Population 16,48,367 12,35,614Male 8,58,906 6,49,484Female 7,89,461 5,86,130Population Growth 33.40% 33.60%Area Sq. Km 2,912 2,912Density/km2 648 486Proportion to Uttarakhand Population 16.29% 14.55%Sex Ratio (Per 1000) 919 902Average Literacy 74.44 64.86Total Child Population (0-6 Age) 2,23,445 2,19,291Literates 10,60,739 6,59,165

Table 2-2 Socio Economic Indicators (U.S.Nagar)

7 Reference: Udham Singh Nagar District : Census 2011 data

2.4 SELECTED TEHSILS

Figure 2-A Map showing US.Nagar District with selected Tehsils

2.1.2 Rudrapur Tehsil Rudrapur is the head quarter of district Udham Singh Nagar. The development of Rudrapur began with the establishment of Integrated Industrial Estates (IIE) with area of 3339 acres and 409 industrial units in Pantnagar, just 2 km outside the municipal area of Rudrapur. It marked a significant impact on the economy of the ‘Mandi’ town. It is fast emerging as one of the largest industrial hubs in the nation. The haste in real estate properties and developments in Rudrapur is primarily the result of tax and economic incentives announced by the central and state governments to promote industrial growth. Rudrapur has been declared as a non-tariff area for central excise, customs and sales tax duties for a period of ten years which span may also be extended by the central government. This has prompted industry players to set up big plants and the subsequent settling down of numerous corporate.




6

2.1.2.1 Demographic data of RudrapurTehsil8

2.1.3 Sitarganj Tehsil It is the biggest administrative block in the district with area of 325 Square km. Growth of Sitarganj corresponds to the development of IIE in the tehsil. SIDCUL (State Industrial Development Corporation of Uttarakhand Limited) jointly with Eldeco Infrastructure & Properties Limited urbanized 1096 acres of land named as Eldeco Sidcul Industrial Park. Investments have already started though lacking a little compared to the targets. The rush in real estate growth in sitarganj is mainly due to low stamp duty rates as compared to other developed industrial parks in the region. Apart from this subsidies similar to IIE Pantnagar is also applicable. Moreover Sitarganj has two way State Highway connectivity from two National Highways which makes it a prominent centre for development.

8 Reference:Rudrapur: Census 2011 data

Demographics of Sitarganj Tehsil9 Description Census 2011

Actual Population 1,88,964

Male 1,18,372

Female 70,592

Average Literacy 56%

Demographics Table 2-3 of Sitarganj Tehsil

2.1.4 Gadarpur Tehsil It is predominantly the agro based settlement. The agriculture surplus is utilized in cottage and small scale industries. ‘Gadarapur’s’ economy base has a special characteristic of a combination of strong primary sector and fast growing secondary sector. As the secondary sector grows, the tertiary sector will grow at a much faster rate. Situated next to ‘Rudrapur’, the town endures enormous inflow of lower middle class population because of being comparatively affordable. Due to space restriction in Rudrapur city immense real estate development is transpiring in the vicinity of Gadarpur tehsil. Numerous agricultural have turned into residential lands due to the influx of the population.

9 Reference: Sitarganj: Census 2011 data

Description Census 2011 Actual Population 2,54,485 Male 1,31,527 Female 1,22,958 Sex Ratio (Per 1000) 895 Average Literacy 74.91

Table 2-4 Demographics of Rudrapur Tehsil




7

2.1.4.1 Demographics of Gadarpur Tehsil10

Description Census 2011

Actual Population 1,38,882

Male 74,497

Female 64,385

Average Literacy 65% Table 2-5 Demographics of Gadarpur Tehsil

2.5 INDUSTRIAL INVESTMENTS11 Uttarakhand is the second fastest mover in the conducive investment environment. It has attracted industrial investment proposals of more than Rs31000 crores in the last four years. The state has transformed from an essentially agrarian and services driven economy into a hub of industrial activity. Some of the initiatives towards increasing industrial activity include:

• Proposed strengthening of the single-window – contact, information and facilitation mechanism.

• Provision of arranging financing through a consortium of banks and financial institutions.

• Provision to facilitate expeditious land availability for setting industrial venture and infrastructure projects.

10 Reference: Gadarpur:2011 data Census 2001 data 11 Reference : (PHD Research Bureau ) PHD Chamber of Commerce and Industry

Figure 2-B Map of Industrial Estates in Uttarakhand12

As shown U.S.Nagar is privileged with two Industrial estates which makes it a quintessence for trade and commerce. Being located at a very vital location the region is successful to be a magnet for long term investments. In accordance with Uttarakhand’s District Outlay Plan for the year 2011-2012 the district had maximum investment towards industrialisation which is significantly higher compared to any other District. For the year of 2012 – 13 the scenario remains identical which demonstrates the consistency. (Refer Annexure I& II)13

12 Reference: India Brand Equity Foundation 13 Department of Planning Haldwani (Uttarakhand)

Map of Industrial Estates & IT parks in Uttarakhand

Parsavanath IT parks

Sigaddi Growth centre

IT Park SahastradharaSalequi Industrial Park

IIE Haridwar

IIE PantNagar

IIE Sitarganj

Notified SEZs

Industrial estates




8

2.6 REAL ESTATE INDUSTRY

Assessing the Prices in Real Estate Industry In order to determine the selling price for residential development a spatial model is created which suggests that-prices are the function of the travel time from the Central Business District (CBD). Nearer the location to the CBD, higher the worth the property will fetch. The model denotes an extremely high correlation between prices and workplace. It also suggests that people plump for the location to subsist on the basis of where they work. In other words, convenience to commute to the workplace decides the location to live.

The prices of locations are governed by their distances from the key CBDs of any city. This signifies that the so-called unorganised and irrational real estate is governed by unseen science, which also goes on to establish that people select the location to live on the basis of their workplace.

The assessment of this can be done by virtue of mapping the competitive profile of the establishments within the catchment or the influencing area. While importance is given to the distance of a location from the primary CBD in a city while valuing it, several other crucial factors are also included and they are:

• Demand vs. supply scenario and its impact on prices / values at various intervals

• Gestation period of a location / property. • Off take levels at various price points over a period.

2.1.5 Magnet theory14 The human spatial mobility to a specific region depends on the internal magnet (attract ability) of the region and external factors influencing it, which is the CBDs. For achieving this:

• Entire Region to be worked on has to be mapped into certain major divisions with demarcation of sub division.

• Land use pattern, Population, Economic profile of the area, Demographic profiles of the population has to be mapped for respective divisions and sub divisions.

• The entire spread of the CBD, its size, influencing power is to be estimated with regard to each division and sub division.

• Existing and Proposed infrastructure, Real estate scenario etc is also to be mapped.

Chart 2-A Magnet Theory

14 http://www.liasesforas.com/mgnt_theory.html




9

A prime location corresponds to the zone having immense pull. The external influences are the CBDs. Three major parameters that result in development of urban squatter & influences spatial mobility are as under:

2.1.5.1 Power of the Zone (Zone Magnet) Generally people reside at the locations within their affordability but always aspire to upgrade themselves by shifting to the more expensive location. The power that influences, the power that pulls and attracts the human movement to the region is known as Zone power.

Every area and region has its own character, which is governed by its geography, topographic, land use and most importantly the composition mix of the demographic of individuals living there as well as their densities. Every area and zone can be defined with respect to the densities and spread of the demographic.

2.1.5.2 Influence of CBDs on the Zone Convenience to work place drives the decision of selecting that location. It is observed, that it’s not the size of the Business Districts, but more so its profile that governs the development in an area. The business districts having primary and secondary industry dominance like manufacturing and food product processing industries have lower influence than the tertiary and service industry. Further among tertiary industries, the business district with the prominence of banking, finance, media, hotel and travel companies have higher degree of influence than IT’s, Transport etc.

2.1.5.3 Infrastructure and Improvement in Convenience Availability of improved infrastructure drives the decision for shifting to that location. It is primarily owed by the convenience of the people residing there. It pulls them for providing better standard of living and easy accessibility to the necessary commodities.

So there is an order in the harmony of so called unorganized real estate. There lies a science in the behavioural pattern of real estate prices.

Chart 2-B Parameters influencing spatial mobility




10

2.7 FACTORS TO DETERMINE THE PROPERTY VALUE15 Certain methodology is adopted to determine the value of a property and the analysis of which can engender outcomes that will be extremely close to the actual prevailing real estate prices. The process is also useful in grading and comparing the market values of that asset.

2.1.6 Estimating the Inherent Value of the Asset according to its basic characters

It refers to the actual value of the asset which is determined through fundamental analysis without reference to its market value. It is a permanent attribute that depicts the worth.

2.1.7 Value according to Present and Expected Future Cash flows on the asset

It determines the present worth and possible future price inflation of the asset due to establishments of certain pickup factors, such as a CBD.

2.1.8 Future Risk in generating Cash flows It establishes the possible obstacles that occur in the course of time which may leads to sudden depreciation of the asset value.

2.1.9 Comparable Market Value Analysis It verifies the prevailing market value of assets based on the amenities, services that the property offers and especially location in which the property is situated.

15 Advisory Services- Liases & Foras

2.1.10 Property grading as per following Data points

The point beneath determines the true necessity of the asset and hence affects the prices and these are:

Location, Distance from CBD, Overall infrastructure, Connectivity, Accessibility, Convenience, Social fabric and surrounding, Developer details and credentials, Title of the land, Construction progress since commencement, Construction quality, Parking facility, Security, Amenities, Sustainability.



CHAPTER 3: DATA COLLECTION & OBSERVATIONS

3 DATA COLLECTION & OBSERVATION

3 DATA COLLECTION & OBSERVATION

3.1 Criteria for selecting survey samples

3.2 Primary data Collection

3.3 Secondary Data collection

3.4 Major Findings




11

3.1 INTRODUCTION The entire data collection is done in two parts:

I- Primary data collection II- Secondary Data collection

Primary data is generated from the information made available through field surveys and direct interviews of households and stakeholders based on the establishment pattern. While the secondary data consists of statistics gathered from collector offices and tehsil offices and further by understanding the allotment list.

Chart 3-A Work Breakdown for Data Collection

Now to determine the number of required samples, certain criteria are pursued. The intentions being getting an outcome that can collectively represents the outcome of the entire population.

3.2 CRITERIA FOR SELECTING SURVEY SAMPLES16

Parametric testing method is applied because the designed questionnaire is in nominal scale format hence by using Chi square test for the cumulative population (according to 2011 census) of all cities the sample size is calculated as under:

n = X2*N*P*(1-P) (ME2*(N-1)+ (X2*P*(1-P)

n = Sample Size

X2 = Chi -Square for the specified confidence level at 1 degree of freedom

N = Population size

P = Population proportion (0.50 )

ME = Desired Margin of error (expressed as a proportion)

16 Reference: Formula used by Krejcie & Morgan in their 1970 article “Determining Sample Size for Research Activities”




12

3.2.1 Required Sample Size

Cumulative Population Size

Confidence = 95% Degree of Accuracy/Margin of Error

5.00% 3.50% 2.50% 1.00%

5,82,331

384 783 1533 9448

Confidence = 99% Degree of Accuracy/Margin of Error

5.00% 3.50% 2.50% 1.00% 663 1351 2642 16128

Table 3-1Recommended sample size for a given population size, level of confidence, and margin of error

Thus for the cumulative population (according to 2011 census) of all cities, sufficient number to generate a 95% level of confidence with margin of error plus or minus 5 %, the required number of responses worked out are 384. These are divided among all the zones in the selected tehsils and sampling is done based on establishment pattern. For uniform segregation 96 samples from each zone is to be surveyed.

3.2.2 Division of Required Sample The samples for survey are alienated in two categories viz. Qualitative and quantitative. The qualitative sampling includes the stakeholder’s survey from which precise idea of the ongoing market conditions can be obtained while quantitative includes the Household survey in order to get the actual feel of the trends and correcting the facts through the cases. Division is done on the zone basis as under:

For Rudrapur (Ref: Fig: 3-A Page: 13) For Sitarganj (Ref: Fig: 3-B & 3-C Page: 14& 15) For Gadarpur Tehsil Ref: Fig: 3-DPage: 16)

Table 3-2 Division of Survey samples

3.2.3 Stakeholder Survey The stakeholder survey is more discussion based. These stakeholders include the developers, colonizers, government officials and especially the property dealers.

3.2.4 Household Survey Household survey is entirely questionnaire based and is conducted through door to door survey in every zone.

PROPOSED ZONES STAKE-

HOLDERS HOUSE-HOLDS

Residential with population density greater than 300 souls/hectare (Rudrapur)

10 86

Residential with population density between 200 souls-300 souls/hectare (Gadarpur, Rudrapur & Sitarganj)

10 86

Industrial & IIE townships (Rudrapur & Sitarganj)

20 76

Main Market area (Gadarpur, Rudrapur & Sitarganj)

20 76

TOTAL 60 324




13

Figure 3-A Rudrapur tehsil Establishment Pattern

R U D R A PU R -N A IN IT A LR O A D

R U D R A PU R -R A M P U R

R O A D

K IC C H A -R U D R A PU RR O A D

K IC C H A -SIT A R G A N JR O A D

R U D R A PU R -K A SH IPU RR O A D

N A IN IT A L -B A R E IL YR O A D

C O M M E R C IA L (S H O P S , H O SP IT A L SA N D G O D O W N )

IIE T O W N SH IPS

R E S ID E N T IA L W IT H PO P U L A T IO ND E N S IT Y > 300 SO U L S PE R H E C T A R E

R E S ID E N T IA L W IT H PO P U L A T IO ND E N S IT Y 200-300 S O U L S PE RH E C T A R E

IIE T O W N SH IPS

E ST A B L ISH M E N T PA T T E R N




14

Figure 3-B: Sitarganj tehsil Establishment Pattern




15

Figure 3-C: Sitarganj Tehsil Industrial Establishment Pattern

INDUSTRIAL PLOTS ELDECO TOWNSHIPS

ESTABLISHMENT PATTERN ELDECO SIDCUL

SITARGANJ MAIN ROAD




16

BARAKHEDA ROAD

KASHIPUR-RUDRAPUR

ROAD

OTHER LINKIN

GROAD

AGRICULTURAL LAND TURNED TOCOMMERCIAL (NEW TOWNSHIP)

RESIDENTIAL WITH POPULATIONDENSITY 200-300 SOULS PER HECTARE

ESTABLISHMENT PATTERN

NEW TOWNSHIPS/ COLONIES

COMMERCIAL

Figure 3-D: Gadarpur tehsil Establishment Pattern




17

3.3 PRIMARY DATA COLLECTION: major findings It is done on establishment pattern basis and collection consists of:

1- Questionnaire for households 2- Field Survey 3- Discussions with Stake holders

3.3.1 Questionnaire for Households A questionnaire is formulated to obtain the market prices and factors that are affecting the property prices. The questionnaire is divided into certain parts based on different parameters important for assessing the growth reasons, these are:

1- Reason for property selection 2- Initial and Present property Rates 3- Initial and Present Rental Rates 4- Price against Travel Time

3.3.1.1 Reason for Selecting Location

LOCATION SELECTION IN RUDRAPUR TEHSIL

Residential Population

density (>300

souls/hec.)

Residential Population

density (200-300

souls/hec.)

Industrial including

IIE townships

Commercial (shops / offices)

Work/ Study place is near 21 11 28 4

Affordable 31 0 0 9 Ancestral 44 21 0 19 Amenities 0 0 20 0 TOTAL 96 32 48 32

Table 3-3Reason for selecting location in Rudrapur Tehsil

LOCATION SELECTION IN SITARGANJ TEHSIL

Residential population

density (>300

souls/hec.)


density (200-300

souls/hec.)

Industrial including ELDECO townships


Work/ Study place is near

0 20 12 11


Table 3-4Reason for selecting location in Sitarganj Tehsil

LOCATION SELECTION IN GADARPUR TEHSIL Residential population

density (>300

souls/hec.)


density (200-300

souls/hec.)

Industrial including

IIE townships


Work/ Study place is near

0 16 0 15


Table 3-5 Reason for selecting location in Gadarpur Teshil

Above tables shows the gathered responses in zones for all the tehsils.




18

3.3.1.2 Initial and Present Property Rates This is done to identify the performance as per various cost brackets over the years. As magnet theory says “People reside at the locations within their affordability but always aspire to upgrade themselves by shifting to the more expensive location “But in terai region as observed individuals are more attracted towards the expensive location because of increase in their purchasing capacity, consequently the prices in the new townships are shooting up because of increase in demand.

For the industrial plots, (Ref: Fig: 3-C Page: 15) the rates were opened by the government and are kept according the nominal circle rates, the demand develops to a great extent and prices are hiked abnormally. At present the govt. rates in the industrial estate is more than the actual due to correction.

RUDRAPUR PROPERTY RATES (RS. /SQM.)

YEAR

Residential with

population density

greater than 300

souls/hectare

Residential with

population density

between 200 souls-300

souls/hectare

IIE townships

Industrial plots

(un-built)

2004 12000 9500 16000 560

2008 24000 20000 26000 4000

2012 till Present 36000 35000 30000 3500

Table 3-6 Rudrapur tehsil price increment

SITARGANJ PROPERTY RATES (PER SQM.)

YEAR

Residential with population

density between 200 souls-300 souls/hectare

ELDECO townships

ELDECO Industrial plots

(un-built)

2004 5000 9000

2008 20000 18000 4000

2012 till Present 22000 20000 3500

Table 3-7 Sitarganj tehsil price increment

GADARPUR PROPERTY RATES (PER SQM.)

YEAR Residential with population density between 200 souls-

300 souls/hectare

New townships/ colonies

2004 4500 -

2008 12000 1200

2012 till present 14000 6000

Table 3-8 Gadarpur tehsil price increment

As depicted above, the Sitarganj tehsil doesn’t have residential area with population density greater than 300 souls/ hectare. Similarly Gadarpur tehsil doesn’t have any industrial area or plots.




19

3.3.1.3 Initial and Present Rental Rates Similarly to the property rates, rental rate increment is also assessed to identify the performance as per various cost brackets over the years. Because of the attraction towards the expensive location the rental value being directly proportional also increases. Although the rental value is almost similar in all the locations but there lay a scarcity of spaces in most demanded areas which are the new townships.

The industrial plots are not included in rental because these spaces are not available for leasing.

RUDRAPUR RENTAL RATES(PER SQFT)

YEAR

Residential with population density greater than 300

souls/hectare

Residential with population density between 200 souls-300 souls/hectare

IIE townships

2004 3.75 3.75 -

2006 8.75 8.75 8.75

2009 6.25 6.25 6.25

Present 9.5 9.5 9.5 Table 3-9 Rudrapur tehsil Rental increment

SITARGANJ RENTALS RATES (PER SQFT.)

YEAR

Residential with population density

between 200 souls-300 souls/hectare

ELDECO townships

2004 3 -

2006 8.25 -

2009 6.5 6

Present 9.5 9 Table 3-10 Sitarganj tehsil Rental increment

GADARPUR RENTALS RATES (PER SQFT)

YEAR




2004 3 -

2006 8.25 -

2009 6.5 -

Present 9.5 9 Table 3-11 Gadarpur tehsil Rental increment

As typified above, the Sitarganj tehsil and Gadarpur tehsil doesn’t have residential area with population density greater than 300 souls/ hectare.




20

3.3.2 Field Surveys It is mainly for the appraisal of the property. Under this people’s interest is recognized in the property. For each tehsil starting from the CBD the prices are checked on a ten minute interval in every direction, then the average of prices under same time interval is done to work out the prices under matching travel time.

3.3.2.1 Prices against Travel Time This is taken into study contemplation because it usually depends upon the surroundings and the type of settlement. The demand drivers in the region for residential/commercial options are surveyed. The outcomes are mostly interest and requirement based.

In this scenario the magnet theory plays a vital role because the demand inflates the prices of the properties located in the immediate vicinity. Further in context to this as the travel time increases the demand of the properties decreases proportionally and hence the property prices with the distance. The same concept applies with the rental rates.

RUDRAPUR TEHSIL

TIME (in mins)

PROPERTY RATES (in rupee)

50 14500 40 22000 30 32000 20 32000 10 36000

Table 3-12 Price against Travel Time

SITARGANJ TEHSIL TIME

(in mins) PROPERTY RATES

(in rupee) 50 9500 40 13500 30 17000 20 18500 10 22000


GADARPUR TEHSIL TIME

(in mins) PROPERTY RATES

(in rupee) 50 - 40 - 30 2200 20 8000 10 14000


As illustrated, Gadarpur tehsil doesn’t have any property over 30 minutes of travel time, since the tehsil limits are less and remaining land is agricultural.

3.3.3 Discussions with Stake holders17 An interactive questionnaire is formulated for the stakeholders with a motive of getting maximum stories and details. The property and rental rates are collected on basis of circle rates divisions for enhanced comparison. (Ref: Fig: 3E.3F & 3GPage:21, 22, 23)

17 Refer Annexure IV




21

R U D R A P U R -N A IN IT A LR O A D

R U D R A P U R -R A M P U R

R O A D

K IC C H A -R U D R A PU RR O A D

K IC C H A -S IT A R G A N JR O A D

R U D R A P U R -K A S H IP U RR O A D

N A IN IT A L -B A R E IL YR O A D

C O M M E R C IA L (S H O P S , H O S P IT A L S A N DG O D O W N )R E S ID E N T IA L U P T O 100MF R O M R O A D H E A D

M A IN H IG H W A Y S W IT H C IR C L E R A T E D IV IS IO N

Figure 3-E: Rudrapur tehsil Circle rate division




22

Figure 3-F: Sitarganj tehsil Circle rate division

S IT A R G A N J -K H A T IM A R O A D

S IT A R G A N J M A IN C IT Y R O A D

R E S ID E N T IA L U P T O 100M F R O M R O A DH E A D

P IL H IB IT R O A D

S IT A R G A N J -K IC C H A B Y P A S S

C O M M E R C IA L

S IT A R G A N J M A IN C IT YR O A D

P IL H IB ITR O A D

S IT A R G A N J -K I C C H AB Y P A SS

S IT A R G A N J -K H A T IM AR O A D

SITARGANJ MAIN HIGHWAY WITH CIRCLE RATE DIVISIONS




23

Figure 3-G: Gadarpur tehsil Circle rates division




24

3.3.3.1 Actual Property Rates The tables below illustrates that all the three tehsils rates are substantial along the main highway only as the investors prefer the pre developed locations. The excessive demand for the pre developed regions is the reason for the price inflation.

RUDRAPUR ACTUAL PROPERTY RATES (in rupee/sqm)

ZONE ROAD

Residential upto 100 m

from road head

Residential more than 100m from

road head

Commercial (shops/Offies)

Nainital- Bareily Road 35,000 22,000 18,000

Kiccha - Rudrapur Road

20,000 17,000 14,000

Kiccha - Sitarganj road 12,000 9,000 6,000

Rudrapur - Naintal road 1,50,000 75,000 2,00,000

Rudrapur - Rampur road 1,25,000 60,000 1,50,000

Rudrapur - Kashipur road 1,25,000 60,000 1,50,000

Table 3-15 Rudrapur Actual Purchase Rates

SITARGANJ ACTUAL PROPERTY RATES (in rupee/sqm) ZONE ROAD

Residential upto 100 m from road

head

Residential more than 100m from road head


Sitarganj-Kichha bypass Road 25000 15000 40000

Sitarganj– Khatima Road 25000 15000 60000

Sitarganj main city Road 25000 15000 60000

Pilibhit Road 7500 5500 8000 Table 3-16 Sitarganj Actual Purchase Rates

GADARPUR ACTUAL PROPERTY RATES (in rupee/sqm)ZONE ROAD

Commercial (Agricultural

land converted

into commercial)


head

Residential more than 50m but

upto 200m from road

head

Residential greater

than 200m from road

head

Kashipur-Rudrapur Road

7500 6000 5000 3750

Barakhed Road 6000 6000 5000 4000

Other linking Road

4500 4500 3900 3000

Table 3-17 Gadarpur Actual Purchase Rates




25

3.3.3.2 Actual Rent Rates When comparing the rent rates also huge inconsistency is witnessed, reason being the same as in property prices. Secondly the work places in the environs also impact the rent hike. Work place generates excessive demand and because of the space restrictions, the rates are monopolised.

RUDRAPUR ACTUAL RENTAL RATES(in rupee/sqft)

ROAD Shop Hotel/ Theatre

Hospital/ School

Godown/ Banquets

Nainital- Bareily Road 160 129 110 95


155 120 100 90

Kiccha - Sitarganj road

100 ‐ 100 85

Rudrapur - Naintal road 430 400 400 250

Rudrapur - Rampur road 400 380 350 225

Rudrapur - Kashipur road

400 380 350 225

Table 3-18 Rudrapur Actual Rent Rate

SITARGANJ ACTUAL RENTAL RATES(in rupee/sqft)


Hospital/ School

Godown/ Banquets

Sitarganj-Kichha bypassRoad

150 60 60 100

Sitarganj – Khatima Road 150 60 60 100

Sitarganj main city Road 150 60 60 100

Pilibhit Road 150 60 60 100

Table 3-19 Sitarganj Actual Rent Rates

GADARPUR ACTUAL RENTAL RATES (in rupee/sqft)


Hospital/ School

Godown/ Banquets


120 70 70 70

Barakheda Road 100 60 60 60

Other linking Road

90 50 50 50

Table 3-20 Gadarpur Actual Rent Rates




26

3.4 Secondary Data Collection: major findings It is carried out in two parts:

1- Collecting the Circle Rates from the government offices 2- Collection of Allotment list of various townships.

3.4.1 Collection of Circle Rates In order to achieve this, collector offices of all the three selected tehsils are visited and latest circle rates for all zones in the tehsils are accumulated. The circle rates encompasses of property rates as well as rent rates. The considered circle rates were published by the finance department on 31-3-2012, since the publication is done biennially so these will remain effective till 1-04-2014.

3.4.1.1 Circle Property Rates These rates are issued by the government and are depicted along the highways only. As a result a huge disparity is observed in the prices because locations near the city fetches greater prices compared to those located far by it but yet enlisted under the same price category.

From the tables beneath it is clear that prices in Rudrapur tehsil have higher prices compared to the other two tehsils. The property rates in Sitarganj tehsil is comparatively higher than Gadarpur tehsil due to the reason that it is bestowed with IIE, although lacks in connectivity and accessibility.

The Gadarpur tehsil have a smaller residential area. The entire land is mainly agricultural based. The outskirts being comparatively cheaper, the agricultural lands are now converting into residential manoeuvrings. Although not much of construction can be witnessed there.

The differences between the circle and actual rates are not much at present. But looking into the future aspect and movement of population from Rudrapur tehsil, the prices are surely going to shoot up.

RUDRAPUR CIRCLE PROPERTY RATES (in rupee/sqm)

ZONE ROAD

Residential upto 100 m

from road head



Nainital- Bareily Road 10500 9500 11500


10500 9500 11500

Kiccha - Sitarganj road 3000 2500 3500

Rudrapur - Naintal road 13500 13000 15500

Rudrapur - Rampur road 13500 13000 15500

Rudrapur - Kashipur road 13500 13000 15500

Table 3-21 Rudrapur Circle Purchase Rates




27

SITARGANJ CIRCLE PROPERTY RATES (in rupee/sqm)ZONE ROAD


head



Sitarganj-Kichha bypass Road 10500 9000 11000

Sitarganj– Khatima Road 10500 9000 11000

Sitarganj main city Road 10500 9000 11000

Pilibhit Road 7000 5000 7000 Table 3-22 Sitarganj Circle Purchase Rates

GADARPUR CIRCLE PROPERTY RATES (in rupee/sqm) ZONE ROAD


land converted

into commercial)


head


upto 200m from road

head

Residential greater than 200m from road head


5200 5200 4500 3500

Barakheda Road 5200 5200 4500 3500

Other linking Road

4000 4000 3500 3000

Table 3-23 Gadarpur Circle Purchase Rates

Circle Rental Rates Since majority of the population working in the IIE, doesn’t belongs to this region and are shifted primarily due to occupational need. Being of temporary nature, most of them have properties on rental basis. The government issues rent rates as well for various categories of commercial properties.

RUDRAPUR CIRCLE RENTAL RATES(in rupee/sqft)


Hospital/ School

Godown/ Banquets

Nainital- Bareily Road 70 55 45 35


70 55 45 35

Kiccha - Sitarganj road

55 40 30 25

Rudrapur - Naintal road 80 60 50 40

Rudrapur - Rampur road 80 60 50 40

Rudrapur - Kashipur road

80 60 50 40

Table 3-24 Rudrapur Circle Rent Rates




28

SITARGANJ CIRCLE RENTAL RATES(in rupee/sqft)


Hospital/ School

Godown/ Banquets

Sitarganj-Kichha bypassRoad

46 40 40 32

Sitarganj – Khatima Road 46 40 40 32

Sitarganj main city Road 46 40 40 32

Pilibhit Road 40 36 36 26

Table 3-25 Sitarganj Circle Rent Rates

GADARPUR CIRCLE RENTAL RATES (in rupee/sqft)ZONE ROAD


land converted

into commercial)


head


upto 200m from road

head

Residential greater than 200m from road head


52 32 23 22

Barakheda Road 52 32 23 22

Other linking Road

48 38 28 22

Table 3-26 Gadarpur Circle Rent Rates

3.4.2 Collection of Allotment list This is done in order to estimate the migratory pattern in the selected tehsils.

3.4.2.1 Migratory Pattern The migratory pattern is taken into study consideration because being the base capital of the state, the headquarters of terai region has many teaching institutes in its vicinity so many students flood into the region with one common need which is housing., The college towns boast a steady flow of students, professors and staff, and a percentage of those always require off-campus housing. In terai region because of it rapid growth many parents are viewing off-campus housing options as something that could not only offer a home for their child, but also be an investment that could appreciate in value for resale after graduation or provide a place for their own future retirement. The migratory is studied from the allotment list of the various colonies or townships.

Chart 3-B Rudrapur Migratory population Distribution

70%

15%

10% 5%Rudrapur Tehsil Original Population

Industrialists (Maharastra, Tamilnadu, Karnataka, & Gujarat)Hills


29


CHAPTER 3: DATA COLLECTION & OBSERVATION

90%

8%

2%Gadarpur Tehsil

Original Population

Hills

Terai nearby towns

Chart 3-C: Sitarganj Migratory population Distribution

3.5 Overall Observations

80%

10%

5% 5%Sitarganj Tehsil Original Population

Industrialists (Maharastra, Tamilnadu, Karnataka, & Gujarat)

Hills

Terai nearby towns

Chart 3-D: Gadarpur Migratory population Distribution

There has been unexceptional growth after 2003 when the government proposed monetary incentives for the companies setting up their units in the IIE (Integrated Industrial Estate), Pantnagar and later in Sitarganj during 2005-2006. Consequently the property prices and the corresponding rental values also appreciated. The increment in better opportunities and standard of living has attracted many outsiders which are 20 % of the present population. This migration is witnessed under a decade period only.

Although the growth rate is phenomenal in the region but It is examined that due to the unfair speculation in the market between 2004-2006, many deals are found to be broken and as a result a correction period is witnessed in the market dynamics of entire terai belt during 2006 till 2009.

Tehsil wise observations can be referred as under:

Rudrapur tehsil (Ref: Tab: 3-27 &3-28, Page: 30&31)

Sitarganj Tehsil (Ref: Tab: 3-29 &3-30, Page: 32&33)

Gadarpur Tehsil (Ref: Tab: 3-31 &3-32, Page: 34&35)


30



RUDRAPUR CIRCLE vs. ACTUAL PROPERTY RATES

ROAD RATES

RESIDENTIAL UPTO 100 M FROM ROAD

HEAD (PER SQM)

RESIDENTIAL MORE THAN 100M FROM

ROAD HEAD (PER SQM)

COMMERCIAL (SHOPS/OFFIES)

(PER SQM.)

NAINITAL- BAREILY ROAD Circle 10500 9500 11500

Actual 35,000 22,000 18,000

KICCHA - RUDRAPUR ROAD Circle 10500 9500 11500

Actual 20,000 17,000 14,000

KICCHA - SITARGANJ ROAD Circle 3000 2500 3500 Actual 12,000 9,000 6,000

RUDRAPUR - NAINTAL ROAD

Circle 13500 13000 15500

Actual 1,50,000 75,000 2,00,000

RUDRAPUR - RAMPUR ROAD Circle 13500 13000 15500

Actual 1,25,000 60,000 1,50,000

RUDRAPUR - KASHIPUR ROAD

Circle 13500 13000 15500

Actual 1,25,000 60,000 1,50,000 Table 3-27 Rudrapur Circle vs. Actual Property Rates

Observations:

For every road the actual rates are extremely higher than the circle rates, in some areas the rates are exceptionally greater by more than 10 times from the government issued circle rates. Also it is witnessed that the circle rates are provided along the highways and remains consistently same but actually the areas on the Highway near to the city fetches better prices.


31



RUDRAPUR CIRCLE vs. ACTUAL RENTAL RATES

ROAD RATES SHOP HOTEL/ THEATRE/ PETROL PUMP

HOSPITAL/ SCHOOL

GODOWN/ BANQUETS

NAINITAL- BAREILY ROAD

Circle 70 55 45 35

Actual 160 129 110 95

KICCHA - RUDRAPUR ROAD

Circle 70 55 45 35

Actual 155 120 100 90

KICCHA - SITARGANJ ROAD

Circle 55 40 30 25

Actual 100 - 100 85

RUDRAPUR - NAINTAL ROAD

Circle 80 60 50 40

Actual 430 400 400 250

RUDRAPUR - RAMPUR ROAD

Circle 80 60 50 40

Actual 400 380 350 225

RUDRAPUR - KASHIPUR ROAD

Circle 80 60 50 40

Actual 400 380 350 225 Table 3-28 Rudrapur Circle vs. Actual Rental Rates

Observations:

The rent rates are unusually high on the main highways. i.e. Rudrapur- Nainital Road, Rudrapur-Rampur Road, and Rudrapur-Kahipur Road respectively. The reason for this is that the spaces along these are mostly saturated and demand is consistently high. As a result excessive pressure is executed in the market rentals.


32



SITARGANJ CIRCLE vs. ACTUAL PROPERTY RATES

ROADS RATES

RESIDENTIAL UPTO 100 M FROM ROAD

HEAD (PER SQM)

RESIDENTIAL MORE THAN 100M FROM ROAD

HEAD (PER SQM)

COMMERCIAL (SHOPS/OFFICES) (PER

SQM)

SITARGANJ- KICHHA BYPASS ROAD

Circle 10,500 9,000 11,000

Actual 25,000 15,000 40,000

SITARGANJ - KHATIMA ROAD

Circle 10,500 9,000 11,000

Actual 25,000 15,000 60,000

SITARGANJ MAIN CITY ROAD

Circle 10,500 9,000 11,000

Actual 25,000 15,000 60,000

PILIBHIT ROAD Circle 7,000 5,000 7,000

Actual 7,500 5,500 8,000 Table 3-29 Sitarganj Circle vs. Actual Property Rates

Observations:

The growth along the main roads is unparalleled but yet the differences are not huge. This is for the fact that connectivity and accessibility to the tehsil deviates the interest of outside investment. So, unfair speculations are not observed because of proportionate demand and supply. Actual Rates along Pilibhit Road is similar to the circle rates because most of the land is agricultural based.


33



SITARGANJ CIRCLE vs. ACTUAL RENTAL RATES

ROADS RATES SHOP HOTEL/ THEATRE/ PETROL PUMP

HOSPITAL/ SCHOOL

GODOWN/ BANQUETS


Circle 46 40 40 32

Actual 150 60 60 100


Circle 46 40 40 32

Actual 150 60 60 100


Circle 46 40 40 32

Actual 150 60 60 100

PILIBHIT ROAD Circle 40 36 36 26

Actual 150 60 60 100 Table 3-30 Sitarganj Circle vs. Actual Rental Rates

Observations:

The actual rent rates are similar on all the roads in Sitarganj Tehsil, this is because the commercial spaces for rent are limited to merely the main city. Since the area is less, time of travelling is reduced and remains fairly same for every area. Hence, the rent rates are similar throughout.


34



GADARPUR CIRCLE vs. ACTUAL PROPERTY RATES

ROAD RATES

COMMERCIAL (AGRICULTURAL LAND

CONVERTED INTO COMMERCIAL)

(PER SQM)

RESIDENTIAL UPTO 50 M

FROM ROAD HEAD

(PER SQM)

RESIDENTIAL MORE THAN

50M BUT UPTO 200M FROM ROAD HEAD (PER SQM)

RESIDENTIAL GREATER THAN

200M FROM ROAD HEAD (PER SQM)

KASHIPUR- RUDRAPUR, GADARPUR ROAD

Circle 5200 5200 4500 3500

Actual 7500 6,000 5,000 3,750

BARAKHEDA ROAD Circle 5200 5200 4500 3500

Actual 6000 6,000 5,000 4,000

OTHER LINKING ROAD Circle 4500 4500 3900 3000

Actual 4000 4,000 3,500 3,000 Table 3-31 Gadarpur Circle vs. Actual Property Rates

Observations:

The difference in property rates are not much between the circle and the actual. The rationale behind is that the circle rates are formulated biennially and recent is from the previous year. In addition to this to this the space availability in the region is more, hence more properties are available for development. Due to this the rates in Gadarpur are quiet affordable.


35



GADARPUR CIRCLE vs. ACTUAL RENTAL RATES

ROAD RATES SHOP HOTEL/

THEATRE/PETROL PUMP

HOSPITAL/SCHOOL GODOWN/BANQUETS


Circle 52 32 23 22

Actual 120 70 70 70

BARAKHEDA ROAD Circle 52 32 23 22

Actual 100 60 60 60

OTHER LINKING ROAD Circle 48 38 28 22

Actual 90 50 50 50 Table 3-32: Gadarpur Circle vs. Actual Rental Rates

Observations:

Despite of the fact that property rates are less in Gadarpur Tehsil, there are very less minuscule difference in rentals compared to the other selected tehsil. This is due to the fact that rentals remain almost consistent for immediate nearby areas. Further the quantum of rented properties is more in Gadarpur as people who do not get accommodation in Rudrapur prefer staying in Gadarpur especially the mass working in IIE Pantnagar.


CHAPTER 4: DATA ANALYSIS


4 DATA ANALYSIS

4 DATA ANALYSIS 4.1 Methodology for Data Analysis

4.2 Rudrapur Tehsil Analysis

4.3 Sitarganj Tehsil Analysis

4.4 Gadarpur Tehsil Analysis

4.5 Reason for selecting location

4.6 Location Attractive Index




36

4.1 METHODOLOGY FOR DATA ANALYSIS The data analysis is carried out in two parts:

1- Secondary data Analysis 2- Primary Data Analysis

Secondary – Comparison of property rates Primary – Householders opinion survey

4.2 RUDRAPUR TEHSIL ANALYSIS

4.2.1 Rudrapur tehsil Circle vs. Actual Property rates Secondary data analysis is done for the information gathered from the government officials and other stake holders while the Primary data analysis is done for the information made available through the direct interviews of the households and field surveys. For better perception the secondary data is analysed first followed by the primary data.

Chart 4-A: Rudarpur tehsil circle vs. Actual Purchase Rate

1050

0

35,0

00

1050

0

20,0

00

3000 12,0

00

1350

0

150,

000

1350

0

125,

000

1350

0

125,

000

9500 22

,000

9500 17,0

00

2500

9,00

0

1300

0

75,0

00

1300

0 60,0

00

1300

0 60,0

00

1150

0

18,0

00

1150

0

14,0

00

3500

6,00

0

1550

0

200,

000

1550

0

150,

000

1550

0

150,

000

Circle Actual Circle Actual Circle Actual Circle Actual Circle Actual Circle Actual

NAINITAL-BAREILY ROAD

KICCHA -RUDRAPUR ROAD

KICCHA -SITARGANJ ROAD

RUDRAPUR -NAINTAL ROAD

RUDRAPUR -RAMPUR ROAD

RUDRAPUR -KASHIPUR ROAD

PRIC

E (i

n ru

pee)

Residential upto 100 m from road head (per sqm) Residential more than 100m from road head (per sqm) Commercial (per sqm.)




37

4.2.2 Rudrapur tehsil Circle vs. Actual Rental rates

Chart 4-B Rudrapur tehsil Circle vs. Actual Rent Rates

As the chart connotes, maximum variation lies in Rudrapur - Naintal Road, Rudrapur - Rampur Road and Rudrapur - Kashipur Road. This is due to the fact that these are the NHs and the pronouncement of investments depends upon the better connectivity with the other big commercial centres, this also assures enhanced future appreciations.

70

160

70

155

55

100

80

430

80

400

80

400

55

129

55

120

40

0

60

400

60

380

60

380

45

110

45

100

30

100

50

400

50

350

50

350

35

95

35

90

25

85

40

250

40

225

40

225

Circle Actual Circle Actual Circle Actual Circle Actual Circle Actual Circle Actual

NAINITAL- BAREILY ROAD

KICCHA -RUDRAPUR ROAD

KICCHA -SITARGANJ ROAD

RUDRAPUR -NAINTAL ROAD

RUDRAPUR -RAMPUR ROAD

RUDRAPUR -KASHIPUR ROAD

PRIC

E (i

n sq

ft)

Shop Hotel/ Theatre Hospital/School Godown/Banquets




38

4.2.3 Prices against Travel Time- Rudrapur tehsil

Chart 4-C Prices against Travel Time-: Rudrapur tehsil

4.2.4 Purchase Price increase (in rupee) - Rudrapur tehsil

Chart 4-D Purchase Price Increase- Rudrapur tehsil

4.2.5 Rent increase- Rudrapur tehsil

Chart 4-E Rent Price Increase- Rudrapur tehsil

NOTE: All years represent financial year (April-March). For instance, 2006 represents April 2005-March 2006.

As examined from Chart 4-D there is slashing of prices in the industrial plots from 2008 to 2013 which is majorly due to depreciation in demand. The reason for this is that initially numerous investors had purchased industrial plots considering the future appreciation, but with time government has also augmented the rates. For liquidating the invested capital people are now selling their plots.

Inferences: The reason for price disparity between circle and actual rates is the excessive demand in a certain area which is because of its proximity wit h the work places.

14500

22000

320003200036000

05000

10000150002000025000300003500040000

0 10 20 30 40 50 60

PRIC

E (i

n ru

pee)

TIME (in mins)

12000

9500

16000

560

24000

20000

26000

4000

36000

35000

30000

3500

Residential population (>300 souls/hectare)

Residential population between (200 souls-300 …

IIE townships

Industrial plots (unbuilt)

201320082004

3.75

8.75

6.25

9.5

3.75

8.75

6.25

9.58.75

6.25

9.5

0

5

10

2004 2006 2009 Present

RENT (in

Rs./sqft)

YEAR

Residential with population density greater than 300 souls/hectareResidential with population density between 200 souls‐300 souls/hectareIIE townships

Unfair & Speculative Market




39

4.3 SITARGANJ TEHSIL ANALYSIS

4.3.1 Sitarganj tehsil Circle vs. Actual Property rates

Chart 4-F Sitarganj tehsil Circle vs. Actual Purchase Rates

As the chart signifies, maximum variation lies in Sitarganj - Katima Road, and Sitarganj Main city Road. This is due to the fact that these are the main highways and most business is concentrated along this only. Further space restriction is the factor which is shooting up the actual prices.

10,5

00

25,0

00

10,5

00

25,0

00

10,5

00

25,0

00

7,00

0

7,50

0

9,00

0 15,0

00

9,00

0 15,0

00

9,00

0 15,0

00

5,00

0

5,50

011,0

00

40,0

00

11,0

00

60,0

00

11,0

00

60,0

00

7,00

0

8,00

0

Circle Actual Circle Actual Circle Actual Circle Actual




PILIBHIT ROAD

PRIC

E (i

n ru

pee)

Residential upto 100 m from road head (per sqm) Residential more than 100m from road head (per sqm) Commercial




40

4.3.2 Sitarganj tehsil Circle vs. Actual Rental rates

Chart 4-G Sitarganj tehsil Circle vs. Actual Rent Rates

Unlike the purchase rates, the rent rates doesn’t have tremendous variations between circle and actual apart from the retail commercial ventures. These rent prices remains almost the same in all the highways.

46

150

46

150

46

150

40

150

40

60

40

60

40

60

36

60

40

60

40

60

40

60

36

60

32

100

32

100

32

100

26

100

Circle Actual Circle Actual Circle Actual Circle Actual


SITARGANJ - KHATIMA ROADSITARGANJ MAIN CITY ROAD PILIBHIT ROAD

PRIC

E (i

n sq

ft)

Shop Hotel/ Theatre/Petrol pump Hospital/School Godown/Banquets




41

4.3.3 Prices against Travel time- Sitarganj tehsil

Chart 4-H Prices against Travel Time-: Sitarganj tehsil

4.3.4 Price increase (in rupee) - Sitarganj tehsil

Chart 4-I Price Increase- Sitarganj tehsil

4.3.5 Rental Increase- Sitarganj tehsil

Chart 4-J Rent Price Increase- Sitarganj tehsil


Inferences: The industrial estate in Sitarganj is formulated during 2005 – 2006 but follows the same pattern as in IIE Pantnagar in the aspect that prices slashed down owing to demand decrement by the investor’s reason being augmentation of government rates. The other reason is that Sitarganj has weaker connectivity through railways which is deviating the investors interest even after the subsidies.

2200018500 17000

135009500

0

5000

10000

15000

20000

25000

10 20 30 40 50

PRIC

E (i

n ru

pee)

TIME (in mins)

5000

9000

20000

18000

4000

22000

20000

3500

Residential with population density between 200 souls-

300 souls/hectare

ELDECO townships

ELDECO Industrial plots (unbuilt)

201320082004

3

8.25

6.5

9.5

6

9

2004 2006 2009 Present

RE

NT

(in R

s./sq

ft)

YEARResidential with population density between 200 souls-300 …ELDECO townships

Under Value Market

Unfair & Speculative Market




42

4.4 GADARPUR TEHSIL ANALYSIS

4.4.1 Gadarpur tehsil Circle vs. Actual Purchase rates

Chart 4-K Gadarpur tehsil Circle vs. Actual Purchase Rates

5200

7500

5200 60

00

4500

4000

5200 6,

000

5200 6,

000

4500

4,00

0

4500 5,

000

4500 5,

000

3900

3,50

0

3500 3,75

0

3500 4,

000

3000

3,00

0

Circle Actual Circle Actual Circle Actual

KASHIPUR-RUDRAPUR, GADARPUR ROAD

BARAKHEDA ROAD OTHER LINKING ROAD

PRIC

E (i

n ru

pee)

Commercial (Agricultural land converted into commercial)(per sqm) Residential upto 50 m from road head (per sqm)Residential more than 50m but upto 200m from road head(per sqm) Residential greater than 200m from road head (per sqm)

As the chart signifies, maximum variation lies in Kashipur-Rudrapur, Gadarpur Road.This is due to the fact that these are the main highways and most business is concentrated along this only. Further space restriction is the factor which is shooting up the actual prices.




43

4.4.2 Gadarpur tehsil Circle vs. Actual Rental rates

Chart 4-L Gadarpur tehsil Circle vs. Actual Rent Rates

52

120

52

100

48

90

32

70

32

60

38

50

23

70

23

60

28

50

22

70

22

60

22

50

Circle Actual Circle Actual Circle Actual


BARAKHEDA ROAD OTHER LINKING ROAD

PRIC

E (i

n sq

ft)

Rates Shop Rates Hotel/ Theatre/Petrol pump Rates Hospital/School Rates Godown/Banquets

Unlike the purchase rates, the rent rates doesn’t have tremendous variations between circle and actual apart from the retail commercial ventures. These rent prices remains almost the same in all the highways.




44

4.4.3 Prices against Travel time- Gadarpur tehsil

Chart 4-M Prices against Travel Time-:Gadarpur tehsil

4.4.4 Price increase (in rupee) - Gadarpur tehsil

Chart 4-N Price Increase- Gadarpur tehsil

4.4.5 Rental increase- Gadarpur tehsil

Chart 4-O Rent Price Increase- Gadarpur tehsil


Inferences: The Gadarpur tehsil has no Industrial estate but new townships are coming up on the periphery of Rudrapur connecting Gadarpur. Considering the present scenario the differences between the circle and actual rates are not much but the bestowed location has surely got tremendous potential of development.

14000

8000

2200

02000400060008000

10000120001400016000

10 20 30

PRIC

E (i

n ru

pee)

TIME (in mins)

450012000

1200

14000

6000

0 5000 10000 15000




201320082004

3

8.256.5

9.59

2004 2006 2009 Present

RE

NT

(in R

s./sq

ft)

YEARResidential with population density between 200 souls-300 souls/hectareNew townships/ colonies

Under Value Market

Unfair & Speculative

Market




45

4.5 REASON FOR SELECTING LOCATION

Chart 4-P Reason for selecting residential with population density >300 souls/hectare

Chart 4-Q Reason for residential with population density between 200-300 souls/hectare

Chart 4-R Reason for selecting Industrial including IIE townships

Chart 4-S Reason for selecting Commercial location

22%

32%

46%

0%

Residential with Population density (>300 souls/hec.)

Work/ Study place is near Affordable Ancestral Amenities

49%

0%

51%

0%

Residential with Population density (200-300 souls/hec.)


42%

0%0%

58%

Industrial including IIE townships

Work/ Study place is near AffordableAncestral Amenities

31%

25%

44%

0%

Commercial





46

4.6 LOCATION ATTRACTIVENESS INDEX

Rudrapur

Tehsil Sitarganj

Tehsil Gadarpur

Tehsil Infrastructure(connectivity, roads, markets, schools) Residential Cost

Proximity to commercial Development Future Infrastructure development Future Employment Generation

Good/ High Average Below Average

This comparative study of all the selected tehsils of terai region shows Rudrapur as having an edge over other locations. This is due to the potential for better infrastructure especially in terms of connectivity along with its proximity to the commercial development. But considering the fact for future infrastructure development Rudrapur takes a back seat as the tehsil is mostly saturated due to which possibilities of generating future employment is also reduced. On the other hand Sitarganj Tehsil, although lacks in connectivity at present but is bestowed with integrated industrial estate offers better future employment possibilities.

Gadarpur tehsil is under developed at present but looking into the aspect of expansion of Rudrapur, scope for future infrastructure development is very intense.


CHAPTER 5: CONCLUSION


5 CONCLUSION

5 CONCLUSION




47

5.1 CONCLUSION The real estate sector in terai region assumed greater prominence with the setting up of IIE, as the consequent increase in business opportunities and migration led to the rising demand for commercial and housing spaces. Due to this, in the past decade there has been an outstanding growth of more than 55% in the property prices.. The present study is an equitable approach to the study of real estate development trends and growth viability of the target region. It comprises of studying the existing circle rates and its vast disparity with the market rates due to the prevailing demand drivers and aspiration to upgrade by shifting to the more expensive location.

Main Findings from Survey

The stakeholders helped in finding out the rationale for the rapid escalation in real estate of terai region which is mainly due to tax and economic incentives given by the central and state government to promote the industrial development. Being located at a very vital location, the region is successful to be a magnet for long term investments from the NCR due to better connectivity and comparative affordability.

It also explains that even though the growth rate is phenomenal in the region but it is examined that due to the unfair speculation in the market between 2004 to 2006, many deals got broken and as a result a correction period is witnessed in the market dynamics of entire terai belt during 2006 till 2009.

Direct interviews with Households have assisted in identifying the exact causes to plump for a location. It also facilitate in recognizing the reason for price variances in purchasing and renting a property. The

outcomes demonstrate that the selection differs with the establishment pattern. Variations are witnessed in the responses of the same queries for different regions. The most densely populated areas have maximum ancestral settlement while people residing in zones with mid size population density prefers locations that are close to the work places, the story is different for the new establishments as the folks are majorly fascinated by the amenities and proximity with the work place.

Survey conducted based on the magnet theory clearly depicts that as the travel time towards the CBD increases, the demand of the properties decreases proportionally with the distance. The reason evaluated is that the demand inflates the prices of the properties located in the immediate vicinity.

The allotment list study says that apart from the industrialists, people from the hills and semi rural areas of UP are migrating into these cities. The reason for migration is enhanced return on investments and better standard of living. Migratory populations amount to 20 % of the present population and this influx is observed in the last decade.

Thus based on the major findings from the undertaken study there is a strong indication that government policies plays an imperative role in the development of a region and should intervene such that long term investments achieves maximum benefits. This would lead to an increase in the revenue from the IIE which would generate better employment.




48

5.2 RECOMMENDATIONS For the holistic development of the state, the basic environment assessment must be done for better harmonizing the infrastructure development with a sustainable societal development.

Environmental examination 18 is carried out to assess various environmental and socio economic impacts resulting from excessive development. The assessment demonstrates that due to the growth in terai territory the underwritten follows:

1- Domestic Sewage and Industrial effluent It is contaminating the soil, water and air which are leading to health impacts.

2- Demand for Housing/Serviced land It is primarily because of overcrowding of population and increased demand for housing as a result of which the land value is changing which is also the reason for proliferation of slums.

3- Land Use changes The drawback of changing land use is that a vast amount of productive agricultural land is converting into non agricultural land.

4- Demand for Amenities/ Basic services It is putting a stress on existing service levels.

18 CEPT (2002) "Mastet Plan for Integrated Industrial Estate- PantNagar”

The impacts due to rapid expansion in the terai region have resulted in the following: 1- Increased in Traffic 2- Increased in Road accidents 3- Changes in landscape 4- Impact on Water, Forests, Agricultural land in the

surroundings. 5- Effects on Air environment, Noise environment, Water

environment. 6- Increase in illegal activities

FUTURE SCOPE OF STUDY Further studies can be done on the following:

1- The same study with comparison of other Industrial regions in India.

2- Comparative study of benefits from the incentives given by the government.

3- Feasibility and viability study of developing IIE on other parts of the regions of Uttarakhand considering shortcomings of this study.


49


BIBILIOGRAPHY

BIBILIOGRAPHY JOURNAL & PAPERS Schriefer, A. Ganesh, J. (2002) "Putting corporate real estate executives in the driver’s seat: Information technology tools enable new possibilities", Journal of Corporate Real Estate, Vol. 4(3), 227 – 236.

Emerging trends in Real Estate Sector-Grant Thornton-CII (confederation of Indian Industry) Report 2012. Atherton, E. French, N. Gabrielli, L. (2008) "Decision theory and real estate development: a note on uncertainty", Journal of European Real Estate Research, Vol. 1 Iss: 2, pp.162 – 182. Raul Valverde “International Journal of Information and Communication Technology Research” ISSN-2223-4985 , Volume 1 No. 3, July 2011.

Review on Indian Real Estate: Trends, Challenges and Prospectus- Dr. Ashok Bansal, 2 Mr. Rajeev Sirohi and 3 Manish Jha., KKIMRC IJRHRM Vol-01: No- 01, Sep-Nov 2011.

Chan, W. Kleiner, B.H (2005) "Managing for excellence in the real estate industry", Management Research News, Vol. 28 Iss: 11/12, pp.171 –178.

Research E&R at a glance,(2012) “Economy and Reality, Knight Frannk,”

Theodore Lynn (1962): Real Estate Investment Trusts: Problems and prospects”, Fordham law review, article 2, Volume 31/ Issue 1.

Krejcie & Morgan in their 1970 article “Determining Sample Size for Research Activities” Liases Foras. Real Estate rating and Research, Residential Market Report Sept 12Qtr

WEBOGRAPHY

Census 2011: ‘Provisional Population division and demographics of U.S.Nagar.’ At:http://censusindia.gov.in/2011provresults/prov_results_paper1_india.html

Publications: 2012, ‘Pune: the leading real estate destination. Available at: http://www.grantthornton.in/html/publications/


i


ANNEXURE Annexure 1: District outlay plan 2011- 2012

ANNEXURE


ii


ANNEXURE Annexure 2: District outlay plan 2012- 2013


iii


ANNEXURE Annexure 3: Questionnaire for household survey

The data gathered in this survey will be treated in the stringent assurance and will be used only in the thesis work and supplementary analysis thereof as part of my course curriculum. All information will be coalesced with information on many other sections prior to production of the survey results.


iv


ANNEXURE Annexure 4: Questionnaire for stakeholder survey

The data gathered in this survey will be treated in the stringent assurance and will be used only in the thesis work and supplementary analysis thereof as part of my course curriculum. All information will be coalesced with information on many other sections prior to production of the survey results.

Annexure 5: Filled questionnaire responses

The data presented below are the cumulative outcomes from the household survey of every selected region on the basis of establishment pattern. The outcomes not presented here can be accessed from Chapter: 3, Data collection. This gathered information is in stringent assurance for the thesis work.

REASON FOR SELECTING LOCATION

Work place is near Affordable Ancestral Amenities TOTAL

Residential with population density (>300 souls/hectare.)

21 31 44 0 96

Residential with population density (200-300 souls/hectare.)

11+20+16 0 21+12+16 0 96


28+12 0 0 20+36 96

Commercial 4+11+15 9+2+13 19+19+4 0 96


v


ANNEXURE

DISTANCE FROM WORK PLACE >1km 1km-

3km 3km-10km <10 km TOTAL

Residential with population density (>300 souls/hectare)

4 15 43 19 81

Residential with population density (200‐300 souls/hectare)

29 44 8 0 81


0 69 12 0 81

Commercial 74 7 0 0 81

MODE OF TRAVELLING

Own Vehicle

Public Transport Company Shared TOTAL


32 49 0 0 81


11 38 0 32 81


45 0 24 12 81


TRAVEL TIME TO WORK PLACE

0-10mins

10-20 mins

20-30 mins

30-40 mins

TOTAL


4 15 43 19 81


29 44 8 0 81


0 69 12 0 81


TYPE OF POSSESSIONOWNED RENTED

TOTAL


69 12 81

Residential with population density (200‐300 souls/hectare) 52 29 81

Industrial including IIE townships 36 45 81

Commercial 62 19 81

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STUDY OF REAL ESTATE DEVELOPMENT TRENDS IN TERAI REGION OF UTTARAKHAND

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