TRAINING AND ORIENTATION MODULE

Let’s understand the basics of REAL ESTATE!

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What is Real Estate?
When you boil it down to the basics, real estate has a simple meaning. It’s a piece of land and the
property – such as a house, office building, apartment, or warehouse – that sits on it. These
structures can be both above and under the ground.

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Real Estate Asset Classes
There are several types of real estate, each with a unique purpose and utility.
The main categories are:
Residential, Commercial, Industrial and Land.

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Real Estate Asset Classes
Residential Real Estate
• As its name suggests, residential real estate is any type of real estate where
people can live. This is the most common type of real estate and is the asset
class that most people are familiar with. The many types of residential real estate
include apartment buildings, row houses, tenements, bungalows, villas, etc.
• Many people purchase residential real estate as a place to live. But you can treat
residential real estate as an investment, too. Even if residential real estate is
primarily bought as a place to live, the home might still turn out to be a solid
investment if it’s worth more when sold than when it was purchased.

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Real Estate Asset Classes
Commercial Real Estate
• Commercial real estate is any property that provides a business service and isn’t used as
a living space. This kind of property includes everything from office buildings and
shopping malls to restaurants, clothing stores, movie theaters, gyms and gas stations.
Industrial Real Estate
• Industrial real estate is any structure or piece of land primarily used for manufacturing
facilities, warehouses, distribution centers and factories. As people spend more time
shopping online, and as they expect the products they buy to show up at their doors in
less time, the demand for industrial real estate has only grown.
Land
• Land can be defined as real estate that has no buildings or structures on it. Anyone who
owns or purchases land can then develop or build on it, as long as they follow the local
zoning codes and regulations for that piece of land.

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Residential Property Types
Row housing development
Residential plotting scheme

Residential Apartment
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Residential Property Types
Residential Plots
• This refers to empty land which has been divided into sections for the purpose of individual
housing. The plots for sale in India are available in various shapes and sizes. Residential plots are
an excellent option for those who wish to construct a new home as per their own taste and
preferences.
Apartments/Flats
• Apartments or flats are living spaces which are a part of a cluster housing complex. Usually
enclosed in high-rise or low rise towers and blocks, residential apartments and flats are the most
popular housing option in India. Apartments for sale in India range between options of 1, 2, 3, 4 or
even 5 BHK and above, depending upon the layout and space availability.
Villas/Bungalows/Row Houses
• Built from the scratch upon residential plots, villas, bungalows and row houses are a few more
examples of independent living. Although some developers do come up with luxury projects
offering such units, these are mostly available in the resale market or are constructed by
individuals who own residential plots.

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Ahmedabad – Understanding the City
• Ahmedabad is a city situated on the banks of
the Sabarmati River. The city has developed on
either sides of the river which runs from north
to south.
• The ring road encircling the city is the SP
(Sardar Patel) Ring Road which is 78 km long.
• SG (Sarkhej – Gandhinagar) Highway is a major
highway which intersects with SP Ring Road at
Vaishnodevi Circle in the north. It ends at
Sarkhej in the south-west.
• Development in Ahmedabad is now sprawling
outside of SP Ring Road, with localities like
Shela, Bopal, Ghuma and Shilaj picking up pace.

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Ahmedabad – Key Localities
Khodiyar
Zundal

Tragad

Chharodi
Chandkheda

Jagatpur
Ognaj
Ranip
Gota
New Ranip

Santej
Chandlodiya

Chanakyapuri
Bhadaj
Ghatlodiya Nava Vadaj
Sola

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Ahmedabad – Key Localities
Naranpura

Shilaj Thaltej
Navrangpura

Vastrapur
Bodakdev

Satellite
Ambawadi

Bopal
Ambli Paldi
Jodhpur
Ghuma

South Bopal
Prahlad Nagar Vasna

Makarba

Shela

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Project Categories
• Rising disposable incomes, a rapidly growing middle class, low interest rates,
fiscal incentives on both interest and principal payments for housing loans,
heightened customer expectations, increased urbanization, and the growing
number of nuclear families have all contributed to the growth of India’s
residential real estate market.
• In Ahmedabad’s residential real estate market and for the purpose of categorizing
products on the basis of pricing for the ease of understanding, residential projects
can be categorized into 3 main segments –
• Affordable Projects, which are priced below 80L
• Premium Projects, which are priced between 80L – 2 Cr
• Luxury Projects, which are priced above 2 Cr
These categories may vary depending on the location and the product.

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Project Life Cycle
Exit Stage/ Ideation Pre-Development
Stage
Redevelopment • The first stage starts with a thorough analysis of the
project and focuses on due diligence and research.
Pre-development is highly variable in duration.
Possession/
Feasibility
• It is important to first conduct a thorough market
Development Studies analysis and feasibility study to fully understand the
Use local real estate market and potential investment
opportunities. Other steps include carrying out land
acquisitions, running environmental assessments
and land surveys, laying out the site plans,
development plans, and building plans, applying for
Construction
Land the various permits and arranging for construction
Acquisition financing.
Design and
Development

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Project Life Cycle
Exit Stage/ Ideation Construction
Redevelopment Stage
• The second stage is the actual construction of the
building. The construction team should monitor the
project closely to ensure smooth operations and
Possession/
Feasibility mitigate the potential risks of project cost or time
Development Studies overruns.
Use
• Being the most expensive stage of the process, it is
imperative to avoid costly mistakes and substandard
work, which may cause the property or the
improvement to fail before its expected lifetime,
Land
Construction
Acquisition
incurring greater costs down the line.

Design and
Development

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Project Life Cycle
Exit Stage/ Ideation Post-Development
Redevelopment Stage
• Once construction is complete, the developer may
either open the building for business to lease and
manage it, or put it up for sale.
Possession/
Development
Feasibility • In the case of leasing and managing the building,
Studies
Use the last stage of the real estate development
process is operations, which is also the first stage of
the building’s life.
• The project may have moved past the risks
Land associated with pre-development and construction,
Construction
Acquisition but securing tenants pose another challenge.
Design and
Development

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Understanding RERA
• Real estate is one of India's most profitable industries. The industry needs a
stress-free, customer-friendly Act. RERA solves the dilemma of consumers and
gives them many rights.
• The Indian government passed The Real Estate Regulatory Authority (RERA) Act in
2016. The Act aims to safeguard property buyers from being cheated. Its primary
goal is to protect consumers against unfair building and development standards.
RERA has established several criteria for the construction and development of real
estate. It helps bring buyers and developers close together.
• GujRERA: Under the RERA Act 2016, the Government of Gujarat established the
Gujarat Real Estate Regulatory Authority (GujRERA), for the promotion and
regulation of the real estate sector in the state.

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Understanding RERA
Overview of the Advertising (Marketing and Branding) Rules stipulated in RERA –
• The advertisement materials under RERA may include any materials describing the details of
project which is marketed and advertised through any medium/mode –
o SMS, E-mails, Hoardings, Prospectus, Brochures, Newspaper, Leaflet, Radio, Television, Social
media platforms, Websites and/or any other forms of media.
• Registration Number of the project must be displayed prominently in the advertisement materials
• Website address of the Real Estate Regulatory Authority must be included.
• All the pictures with any information in the advertisement materials must be clear and near
actual without any false, misleading information.
• Prior to advertisement and marketing of the project by the Channel Partners and Agents, the
project should be registered with Real Estate Regulatory Authority and only thereafter they shall
be entitled to advertise and market the project following all the guidelines as aforementioned.

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Understanding RERA
How to access GujRERA?
• GujRERA website can be accessed through 2 links –
o https://www.gujrerar1.gujarat.gov.in/ (Old version)
o https://www.gujrera.gujarat.gov.in/#/ (New version)
• We suggest you to use the old version, since it has a larger database.
Using GujRERA to search for Project Details –
• In the website’s search box, type a project name. This will redirect you to a search page.
• There might be multiple projects with same/similar name. Project Location/Promoter Name will
help you identify the exact project you are looking for. Once you have found the project you are
looking for, click on ‘Read More’. This will redirect you to the Project Detail page.
• On this page, you will find all requisite details, including RERA number and Project Status.
• To download the project’s brochure, scroll down to the ‘Project Documents’ section.

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Area Calculation
• Home buyers in India would invariably come across terms like carpet area, built up area and super built up
area as they try to understand the size of their homes. These three terms are used to calculate the size of
your apartment but each considers different components for the calculation.
• Carpet Area - Carpet area is that area in the flat which you could cover using a carpet.
• Formula: Carpet area = Area of bedroom + living room + balconies + toilets –thickness of inner walls
• Built-up Area – This includes carpet area, plus the space taken by the walls. The build-up area in a flat also
includes other unusable areas like balcony, terrace, flower beds, etc.
• Formula: Built-up area = Carpet area + area of walls + area of balcony
• Super Built-up Area - Super built-up area is the built-up area of the property, along with the proportionate
area of the common facilities in the project. These may include the lobby, the lift shaft, the stairs, the
swimming pool, the garden, the park and clubhouse, etc. In some cases, builders even include amenities such
as pools, gardens and clubhouses, in the common area.
• Formula: Super built-up area = Built-up area + proportionate common area

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Area Calculation

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Brochure Breakdown
• The real estate brochure is a marketing tool that helps real estate companies promote their
projects. It contains a list of elements, which help understand the project in a holistic manner.
Following is the list of elements. Make note that these are the basic elements and this is not an
exhaustive list. Elements and their sequence may vary in every brochure.

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Brochure Breakdown
• Project Name – This refers to the project name as registered with RERA and the name which is used for all
communications in the market.
• Previous projects by the Developer Group – By mentioning previous projects, the developer creates credibility
and trust in the market by providing details of the projects they have successfully completed.
• Location and Connectivity – Project location allows customers to understand how to reach the project, how
well the location is connected to other localities and the schools, hospitals, restaurants and other social
infrastructure close-by.
• Amenities – Amenities refer to any feature or benefit that improves the value or usability of a property. They
are a key part of the product offering and developers use them to differentiate themselves in the market.
Example: Swimming Pool, Club House, Gym, Skating Rink.
• Layout/Plan - A real estate plan is a drawing to scale that shows the property as seen from above. It shows
the relationship between rooms and spaces and the overall layout of the property. Example: Ground Floor
Layout, Basement Layout, Floor Layout, Terrace Layout, Unit Layout.
• Specifications – This is a list of brands and standard material used in the making of the structure and in the
overall construction process.

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