LAND AND REAL ESTATE

IN URBAN DEVELOPMENT

METHODS AND TECHNIQUES

Dr. Sheuli Mitra, SPA Bhopal

 The horizontal and …..the vertical

Are there Principles of Economics which guide

Urban Structure and Form
OR
Are they a manifestation of only Spatial
Planning Initiatives?
2
 URBAN DEVELOPMENT:
TRACING THE PATH
• PATRON DRIVEN- Princely States
• KEY PARAMETERS:
• Dominance of landmark building- palace,
religious precinct
• IMPACT
• Flamboyance in select structures
• Muted City form spreads around
 URBAN DEVELOPMENT:
TRACING THE PATH
• STATE AS PROTAGONIST:
SOCIALISTIC MODEL
• KEY PARAMETERS:
• Public money- economy in design
• Utilitarian model- equitable distribution of
land and resources
• IMPACT:
• City design as ‘infill’ into overall planning
scheme
 URBAN DEVELOPMENT:
TRACING THE PATH
• STATE AS FACILITATOR:
PRIVATE PARTICIPATION
• KEY PARAMETERS:
• Increased Fund availability
• Profit to developer – pre-requisite to project
development
• IMPACT
Large quantum- reduced development time
Enhanced Urban character
 Density Profiles in Urban Areas

Sub CBD

Bid Rent Curve for Mono- Distribution of Functions in

centric and Poly centric cities the City

Density Values, Gradients, Distance from Centre differ but follow 7

same Curve
 Variations to the Bid Rent Curve
BHOPAL ????

Positively Sloping Bid Rent Curves are Liabilities to

Cities

8
 Efficiencies and Urban Form
BARCELONA ATLANTA
Population (in 2.8 2.5
million)
Built Up Land 162 4280
Area (sq. km)
Average density 171 6
(in pph)
Average land 58 1712
A 10 minute walking
Consumption
distance at 4.5 km/hour
(sq.m. per
speed
person)
corresponds to a maximum
accessibility radius of about Public Transit 99 km 74 km
800 m to a metro station. Network
Passengers 60% within 600 4 % lives within
catered by Public m from Transit 800 m from
Transit station transit station
For the City of Atlanta to build a Transit similar to that of
Barcelona i.e catering to 60% of population, it would have to build
3400 km of tracks and 2400 new stops! 9
Would it be financially Viable?
 Efficiencies and Urban Form: Increasing Densities
ATLANTA
Population 2.5 million
Built Up Area 4280 sq.km.
Average density 6 pph
Scenario 1 ( Land density based: 30 pph on 12.84 million (25.6% annual growth
total land) rate)
Scenario 2 (Population Growth based) 4.77 million (2.7% annual growth rate)
Land required at 30 pph 1412 sq.m.
To encourage ‘re-densification’: To achieve an average density of 30
pph over a 20 year period, at the growth rate of 2.7 %, 67% of existing
building stock would have to be pulled down and the population and
jobs moved to33% of the land , the rest returned back to nature!

•Population growth is a function of city economy

•Built up and real estate growth is a response to
economy and population growth 10
Different Spatial Distribution of keeping Population, Built
up Areas & Average Densities Constant

11
Urban Structure and Regulations: Case of Mumbai

Balancing FSI and Infrastructure Provision is a tight rope walk for city
planners!

Informal Housing will consume highest FSI in the Best Location if not
otherwise handled ! 12
 Real Estate Development
• The process
• The outcome
• Techniques of Market Analysis
The First step …

Project Conceptualization
SIT
E

 What?

Why?

How?
Broad Study Methodology

Project Scoping
and Definition

Township as Economy
Driver evolving as Self Township as Reservoir
Sustainable Integrated for residential demand
Project feeding into the region
Greenfield Planned developments – driver based development
Name of Area
Developer Status
development (acres)
Development started in 1970s. 10%
population increase in 1991 census. Final
Navi Mumbai CIDCO 47,060
target population of 2 million.14 nodal towns
of approx. 3500 acres each.
Development started in 1991. With 1.2 million
Greater target population, the development is under
GNIDA 49,400.0
NOIDA construction with 19% Industrial, 25%
residential.
With around 1.0 million target population,
New Town -
HIDCO 9,334.1 being developed as satellite township of
Kolkata
Kolkata with IT as main driver.
Bangalore-
Knowledge
Mysore
City - IT & Bio- 9,000.0 Planning stage
corridor
tech
BMRDA
An integrated township in Gurgaon, with
DLF City, significant Retail, Residential and
DLF 3,000.0
Gurgaon Commercial uses. Progressing since – 1981
to 2005
Identification of Demand
Driver
 Edu-City
 Medi-City
 Knowledge
City
 Media City
 Other
Industrial
State as Facilitator
Location of Rajarhat w.r.t Kolkata

SITE

Rajarhat
Saltlake

State sells/leases serviced land to

private developers to build real
estate
Source: WBHIDCO and ‘Challenges of Urbanization – Role of New Town, Kolkata’, FICCI.

PPP models of development may be adopted, where Govt. remains a partner in

development. In outright sale, Govt. receives money but exits the project. HOME
 Typical Methodology of Feasibility/ Best use Study
Objective
Best-use option study for the
land parcel/Feasibility Study of
Project

Study the real-estate growth trends of the Supply Mapping of

SWOT Analysis of the site
city Other Similar Projects in
Catchment area:
Secondary Survey Study of the primary catchment • Residential
Primary Survey area – study the micro real-estate • Commercial
Study of the socio-economic profile trends of the vicinity and • Retail
of the site vicinity identification of development • Hospitality
options

Demand Assessment: Analysis of Primary and Secondary Survey

Demand Supply Gap

Competitive
Derivation of preferred product mix Benchmarking

Achievable Pricing

DESIGN BRIEF – MASTER

Salient Recommendation
PLANNING

HOME
Demand Assessment: Identification of Target User

Micro
Catchment Who is the
Extended User?
Catchment •Socio-economic
• East & North--east India
group
•From where will
• Pan-India
they come?
• Neighbouring countries
•What
• Overseas preferences do
NH 6 they have?
Kolkata
 Supply Mapping: Mapping of Competition

What competition is there in

this sector?  Analysis of Issues
 What formats have been built?  Present scenario:
 What quantum and typology is • Formats
being supplied? • Major players
 What is the user response to Demand - supply dynamics: Is there
these formats? un-met demand?
 What are the selling prices?
 THE DECISION Matching
Demand with
MAKING PROCESS: Site Potential

-Location
-Accessibility
-Natural
Resources
-Surrounding
Land Use
-Physical
Infrastructure-
Off site
facilities
On site
facilities