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Research, Analysis and Insights

About Analysis & Indexing

Overview

Our research showed that an investor looking to purchase a property either for investment or personal use takes into consideration majorly five verticals, these are; the size, scale and area of the property (i.e. its design); the specifications, which include the various facets within the property including their quality of finish; amenities like club, sports/games etc. including their quality (i.e. conveniences);propinquity takes into account location of the property; last but by no means the least, the budget requirements (the cost factor).

All these verticals were independently analysed by our nominated teams against various facets and parameters for indexing were accordingly drawn out. The detail of considerations for analysis and indexing for each vertical are elaborated upon in succeeding heads.

We also realised that for any investor the priority of the verticals discussed above may vary as a matter of perception and further depends on the reasons for investment. As an example, for an individual purchasing property for investment its location and cost might be the most important facets, whereas if the property is for self-use then the specifications and conveniences might be the paramount considerations. In order to provide a user flexibility the Gross Index (discussed below) has a unique section ‘Select Priority’ wherein user can fill up his/her priority from 1 to 4 and generate a customised graph, for better analysis and decision making.

Out of the four indices three are Project based (i.e. Specifications, Conveniences and Propinquity) whereas Design Index is based on specific accommodation scale.

Design Index

Floor plans often than not, do not reflect the true picture, generally showing a double bed in each bedroom with ample empty space around it, a perspective buyer does not realise that the bed size is ‘not to scale’. On ground, when a king size bed alongwith side tables and a wardrobe of 6 feet by 2 feet is placed in the room there might not be much space left, a similar thing happens with washrooms as well. In order to address this issue an indepth analysis was carried out and an ‘Adequate/Acceptable Scale’ (i.e. area) was arrived at for each of the following:-

  • # Master Bedroom.
  • # Master Bathroom
  • # Bedrooms (all other).
  • # Bathrooms (all other).

We took into account that a Master Bedroom should accommodate a King Size bed + a 6 by 2 feet wardrobe + 2 easy chairs/sofas. Similarly, for the other bedrooms the area should be adequate for a king size bed alongwith a wardrobe.

For the washrooms the ‘ Adequate Scale ’ was decided on 3 parameters, i.e. wash area space, WC and bathing cubicle. In addition for the Master Bathroom, space for bath tub/Jacuzzi was considered.

With the above ‘ Scale Model’ in place, the Comparative Algorithm was implemented. Each bedroom and bathroom was compared against the corresponding ‘ Adequate Scale ’ and given a relative score. Scores of individual bedrooms and bathrooms were combined and averaged out.

Another very important aspect for any constructed property is the Carpet Area being provided against the super area a customer is charged for. Generally the carpet area is not divulged due to various factors. The floor plans were utilised to calculate the same for each accommodation design.

The carpet area v/s super area ratio (%) was utilised to generate another set of score for each accommodation design.

The overall Design Index was calculated by averaging out the ‘ Adequate Scale ’ and ‘ Carpet Area ’ scores.

The Developer Aspect

The quality of the Amenities (Conveniences within a project) and Specifications (of the apartment) will always depend on the Builder’s Brand. Taking this into account each builder has been rated against a number of parameters ranging from market reputation and value, delivery promptness, quality, green initiatives etc. The overall credit obtained by the builder has then been juxtaposed on the Specification and Convenience scores to arrive at the Index ratings for these two categories.

Specification Index

Specifications provided within an apartment/villa is another important criteria for consideration.

The algorithm takes into account approximately forty parameters/attributes, starting from finish of the walls; flooring in common areas,master bedroom and other bedrooms; quality of Doors; electrical wiring and fittings to include fans, lights and geysers;quality and array of fitments in bathrooms; appliances and fittings in the kitchen; ACs; security aspects like intercom, video door phones etc. Add-ons like water treatment, home automation systems etc. The Combination of each attribute, its qualityand place (room) yields a specific credit, which then have been summed up (∑). The final Specification Index has been arrived at by juxtaposing the Builder’s credit on the overall specification score, for each project.

Convenience Index

This segment looks at the amenities/facilities being provided as part of the project within the gated complex.

The algorithm takes into account approximately twenty parameters. These include quality of the Club house, availability of swimming pool-indoor/outdoor; health care features like Gymnasium, Spa, Sauna, Steam, clinic etc.; lavishness of the landscape; outdoor & indoor sports; Security & Fire Fighting mechanisms; power backup; schoolsetc; compliance with Seismic, vastu and rain water harvesting features. Combination of each parameter and its features yield a specific creditwhich were thensummed up (∑). As evident the quality of these facilities would depend on the Builder’s brand, therefore the Builder’s Creditwas juxtaposed on the overall convenience score to generate the final Convenience Index for each Project.

Propinquity Index

The geographical boundaries of any city/town can be divided into various zones depending upon the road connectivity; public transport system; availability of various facilities like, educational institutions, hospitals, shopping malls/arcades etc; including the existing ones and the ones planned. Based on these factors, as well as the gentry which resides, these zones get classified from high (Lutyens), middle to lower strata. Location of the property is the single most important factor which dictates the ‘general market price’ of a zone/area and vice-a-versa. Taking into account the above factors the cities/towns have been divided into various zones having their relative credit values.