Environment factors if any Market Value of different properties Effects of Pollution on property

1. Environment factors if any Market Value of different properties Effects of Pollution on property Collected by JHPateL ISTAR

2. Effects of Environmental Pollution • Air Pollution • CHEMICAL FACTORY IN BEHRAMPURA ADJOINING TO ANOTHER FACTORY at Ahmedabad the surrounding circumstances around a particular land or plot decreases the value of surrounding lands and premises drastically... • Thumb Rule: We may assume depreciation in construction value but Land is never having any kind of depreciation effect….

3. Chemical factory

4. Factory is located in Behrampura area at Ahmedabad; which is a part of Maninagar area. It is a chemical factory so its own corrosion and chemical effect will affect its land and construction. Along with this there is an adjoining factory which makes bone powder manufacturing unit. The bad sting smell of this unit is worse than of a Suez-farm. These both are the prime reasons which make the subject property away from market as well as from buyer’s interest. Recently this factory is sold after big efforts, in the transaction no value is achieved of construction. Details of Subject Property: Details of Comparable Sale Instance: -Area of Land: 230 Sq. Yds-Area of Land: 255 Sq. Yds -Area of Building: 52 Sq. Yds. -Area of Building: Open plot -Date of Sale: January-2011 -Date of Sale: December-2010 -Sale price: Rs. 23,00,000/ - -Sale price: Rs. 39,50,000/- -Rate of Building: Rs. 2,50,000/- -Rate of Building: Vergin Plot -Rate of Land: Rs. 8,913/Sq. Yd -Rate of Land: Rs. 15,490/Sq. Yd Here the subject & comparable property are very near to each other. Such cases like this definitely show depreciation in land value as this case is showing 42% reduction on land rate than the prevailing market rate. The Land may show deduction on market value up to 5-50% or even more, too then its surrounding premises. Conclusion: It is found that there is a reduction of 42% in the land value due to the AIR POLLUTION

6. ENVIRONMENTAL POLLUTION +STIGMA OF AN ACTIVITY LOCATION NEAR A CREMATORY

8. RESIDENTIAL PROPERTY ADJOINING TO CREMATORY (STIGMA OF BELEIFE) cemetery is the place where we give Homage to the people who are gone to the Heaven. The Cemetery is kind of Stigma effect which will take away interest of open market from buyers. And another thing of removing interest along with Stigma is that constant dust of air particles of dead body and particulate matters. Along with air pollution the presence of Noise pollution is also there as the constant crying and roaring of beloved relatives of that died person. Thumb Rule: Property adjoining to crematory place is considered to fetch 40% less than the fair market value. Case Study: There is an old hindu crematory place in Ellisbridge area at Ahmedabad. The whole surrounded area is covered with below middle class family who lives in their wooden old tenements. The said property is just beside to crematory house; which was recently sold at almost half value of similar tenement which is away from crematory. Details of Subject Property: Details of Comparable Sale Instance: -Area of Tenement: 40 Sq. Yds. -Area of Tenement: 55 Sq. Yds. -Date of Sale: December-2011 -Date of Sale: February-2012 -Sale price: Rs. 6,00,000/- -Sale price: Rs. 39,50,000/- -Rate of Tenement: Rs.15,000/Sq. Yd -Rate of Tenement: Rs. 71,800/Sq. Yd Here one can see that the transaction difference time was only two months, but the rate of reduction was 45% and this deduction on market rate was having stigma effect of RESIDENTIAL and this deduction on market rate was having stigma effect of

9. RESIDENTIAL PROPERTY ADJOINING TO A STARCH MANUFACTURING UNIT here is a big Starch manufacturing unit present in Asarva area at Ahmedabad which is constantly emitting hazardous panic pollutants since many years. Whenever there is a starch manufacturing unit, the surrounding air definitely becomes polluted. Thumb Rule: There shouldn’t any residence surrounding a starch manufacturing unit but if it’s there then Case Study: A specific component the effect of that starch unit is painful upto 5-7 km. These emitted hazardous oxides and other substance makes burning effect to the internal skin of body. Apart from this sneezing, coughing, burning in eye are the common effects. Due to this the surrounding area has potential to develop but rates are couldn’t climb up. There are three tenements sold in different rates in different belts. There are transactions rate which is a combined rate of land & buildings.

12. Belt No. 1 Rs. 8500/Sq. Yds. 75 Sq. Yds. Tenement of 1 BHK sold at 6,37,500 in white house society in Jan-2011 Belt No. 2 Rs. 11,300/Sq. Yds. 127 Sq. Yds. Tenement of 2 BHK sold at 14,35,000 in Ashamata-II society in April-2011 Belt No. 3 Rs. 14,200/Sq. Yds. 81 Sq. Yds. Tenement of 1 BHK sold at 10,10,000 in Ashamata society in July-2011 Belt No. I : Rs. 8500 Combined rate per Sq. Yds. Belt No. II : Rs. 11,300 Combined rate per Sq. Yds. Belt No. III : Rs. 14,200 Combined rate per Sq. Yds.

13. ENVIRONMENTAL POLLUTION --STIGMA OF AN unwanted commercial ACTIVITY LOCATION NEAR A Spices shop

15. RESIDENTIAL CUM COMMERCIAL PROPERTY ADJOINING TO SPICES SHOP Spices shop market is really tough to live. Many a times we have observed whenever we enter into the market; suddenly coughing, burning of eyes, sneezing and health related effect starts. Thumb Rule: The area of Spices shop market is really terrible. So a residential property present in this premises definitely reduce its value by 15-20% Case Study: In Ahmedabad this is a very interesting case where in the transaction the purchaser is a well-known Co. Operative bank. Delhi Darwaja (Gate) is one of the most prime areas of Ahmedabad. Here a 3 storied old residential tenement building was recently purchased by that bank. The Spices market or masala market is just on the backside of this tenement. Whenever anyone enters into the building of bank he/she starts sneezing, cough, burning effect in inner skin of body. Currently they have made AC on ground and 1st floor but still the 2nd floor AC is not installed, so we can feel the effect over there. Even though the workers are also constantly sneezing, paining and suffering because of the air particles present in surrounding atmosphere. The parcel of all three floors was sold in beginning of 2010. Details of Subject Property: -Area of Land: 140 Sq. Yds. -Rate of Land: Rs. 35,000/Sq. Yds. -Area of Building: 325 Sq. Yds. -Rate of Building: Rs. 3000/Sq. Yds. -Sale price: Rs. 58,75,000/- -Date of Sale: 2010 Beginning Still the transaction was done in such a low rate because of the negative environmental factor of masala market at backside of Masala market. If we remove that effect then only land may achieve land rate of 55-57,000/ Sq. Yds. rate. (This was the original prevailing market rate of the area in beginning of 2010. It’s found out by local enquiry.) Conclusion: A Property adjoining to a spices shop is definitely a negative effect

16. ENVIRONMENTAL POLLUTION --STIGMA OF AN unwanted commercial ACTIVITY LOCATION NEAR A FISH shop

17. A RESIDENT PROPERTY ADJOINING TO FISH MARKET Rakhial , Isanpur are Para areas of Ahmedabad. Properties in these areas lose prices because of many reasons. One of them is Fish Market, too. Initially it sounds very small reason but its impact a lot on property value. Thumb Rule: There isn’t any such thumb rule in this case but if its hindu area nearer and fish is sold, then definitely deduct 10-15 % then the market rate. Case Study: In Rakhiyal, majority people are Non-Gujaratis. Mostly Bengolis , Hindu, Christian and Muslim brothers and sisters are living there. The smells of stink for fishes are unbearable. Sometimes and many a time’s people have complained to government. There are mostly chawls and very few raw houses. The said property is a 2 BHK residential bungalow which was recently sold in 32.25 Lakh Rs. which was almost 107 Sq. Yds. construction in ground floor & 1st floor. Total plot area was 120 Sq. Yds. The main reason of transaction in such a reduced rate was the only constant stink of fishes from opposite fish market. If the said effect is removing it might fetch Rs. 40 Lakh or more than that, too. Conclusion: These are the small stigmas but it can impact 25% on market value.

19. ENVIRONMENTAL POLLUTION --STIGMA OF AN EVEN MSW ACTIVITY LOCATION NEAR A MUNICIPAL GARBAJE COLLECTOR

20. RESIDENT PROPERTY ADJOINING TO MUNICIPAL GARBAJE COLLECTOR hough Anyone’s residence is ultra-modern, luxurious whenever any property having Municipal garbage/waste dustbin in front of his/her house definitely its Market Value is adversely affected. Thumb Rule: There is 10% deduction if property is facing this municipal dustbin. Case Study: Parimal Garden is the one of the old garden of Ahmedabad and very prime location. There is a building which was made on 2008 name Krishna Apartment. Everything is superb the location, external appearance, interior but whenever anyone enters in the building premises from outside they firstly see the big huge dustbin kept there by AMC. For that reason the builder has taken almost 2 years to sell out his all flats and not at desired rate, too.. Otherwise this location is so good that if there wasn’t AMC dustbin then the all flat might booked within 15 days of opening. In all flats the front roadside flat should be sold in higher price but here all flats were sold in a same price. It’s not only deduction in value but it will also lose prestige and purchaser’s interest as sell within 15 days & to sell after 2 years makes a huge difference in the open market. Conclusion: If there is a common municipal garbage collector (dustbin) in front of flat/tenement then 10-15% rate is reduced from market rate.

22. RESIDENTIAL DEVELOPMENT AROUND A CONTANGIOUS DISEASE HOSPITAL There is a vast difference between a Normal ordinary hospital and Contagious Disease hospital. When the word ‘Contagious’ comes; the feeling of threatened always occurs especially to a property buyer. Thumb Rule: Whenever any property is adjoining to a hospital, 5-7% deduction in market value of residential tenement/bungalow is considered. And if it’s contagious hospital, then there should be deduction of 50-70% on the Market Value. Case Study: There is a Contagious Disease hospital located at Lambha nearer to the Vasana region. The surrounding premise is covered by slums. And after that few residential schemes are there. This hospital is located at central portion of the city. So if the hospital is migrated to any outskirts area; this whole area may fetch a good value then the current scenario.

24. Effects of water Quality

25. RESIDENTAL PROPERTIES HAVING POOR WATER QUALITY otiKapdaAurMakan (House)’ It is the old title of a well-known old movie. The govt. must fulfill these three needs of people. In today’s Era there is a addition of a one more needing factor i.e. water. Water is essential part of every living organism. If good quality of water is not provided then the development could not be achieve at its optimum rate. In Ahmedabad there are many areas which have potential to grow but due to poor quality of water these areas have become stagnant. Thumb Rule: For the land the availability and quality of water plays an important role and for residential flat and tenement the same principle prevails. Case Study: Availability of water is amenity served by the government. But quality of water is an environmental factor which matters a lot. In Ahmedabad there are many areas like Odhav, Vatva, Narol, Asarva etc. which have potential to develop but lack of good water quality is making them stagnant. Details of Subject Property: Details of Comparable Sale Instance: -Area of Flat: 85 Sq. Yds. (2-BHK) -Area of Land: 90 Sq. Yds. (2-BHK) -Location: Vatva (New scheme) -Location: Vatva (New scheme) -Date of Sale: January-2011 -Date of Sale: April-2011 -Sale price: Rs. 7,50,000/- -Sale price: Rs. 18,00,000/- -Rate of Transaction: Rs. 8,825/Sq. Yds -Rate of Transaction: Rs. 20,000/Sq. Yds

26. Effect of water Pollution

27. Recently one newly built up 2-BHK flat having area of 85 Sq. Yds. was sold in Naroda at 7.5 Lakh Rs. It’s almost impossible price tag but later on found the main reason behind this cheap price tag was the poor quality of water which is polluted by the surrounding industrial zones. During my site visits in these particular areas I found out the different coloured water in different areas having unpleasant smell. These are the areas where the 2-BHK flats transaction takes place between Rs.; 12-20 lakh but because of poor quality of water it was done less than the market limit. We have collected the water sample of this water and checked the different parameters of water like BOD, COD, pH, TDS etc. And surprisingly we found out that the water was definitely not drinkable but its having so much high digits which are far away from allowed limit for C-ETP unit by GPCB. Now GPCB has taken up now little bit action in current year 2012 by giving closures to many undisciplined industrial units. But still lots of tasks are remaining… If all these areas are provided with good water quality then it may raise the real estate market more than our imagination. As a proverb says ‘Water is Life’ so Life will expand more where good water is available. (As our all the cultures in the world developed on banks of some rivers) So definitely if these areas are provided with good quality of water, it will surely increase its value and possibly may attract good real estate projects. Conclusion: Due to poor quality of water, though it’s a newly built up scheme, shows 55% reduction in Market Rate.

29. Effect of Soil/Land Pollution

30. DUMPING OF SOLID WASTE – TSDF SITE LOCATED AT PIRANA, AHMEDABAD irana is the name of place where whole Ahmedabad’s solid waste is collected by AMC and the useful content from this solid waste utilize for good fertilizer production which is done by a private company Excel Crop Care Ltd. The useless waste they arrange on a rock and time to time they burn it. Thumb Rule: Usually there isn’t much development of real estate surrounding any TSDF site. There might be open land only which should be ideally 50-75% deduction then the current market rate. Here the TSDF stands for Treatment Stabilization Disposal Facilities. Case Study: TSDF means Treatment, Storage & Disposal Facility. Every city is having a own TSDF site which is managed by state government. In Ahmedabad it is run by AMC (Ahmedabad Municipal Corporation) with the partnership of few private companies. Here the whole Ahmedabad’s Solid waste is collected and it is dumped here. Daily more than 200 trucks, mini vans come here to throw garbage by making about 8 to 9 visits in a day. These trucks dump huge garbage over there. -Land Rate at Pirana: Rs. 12-15k/Sq. Yds. -Land rate at Vasana: Rs. 30-50k/Sq. Yds. -Latest Transaction: No Transaction -Latest Transaction: 270 Sq. Yds land sold at Rs. 94,50,000 which means at Rs. 35,000/Sq. Yds. Location wise this area is very good for development of commercial as well as residential schemes, because it’s between Paldi and Maninagar area; both the areas are prime areas of Ahmedabad. Another thing is Sardar Patel Ring Road is a boundary road which covers the whole Ahmedabad from every direction. This road is also passing through the backside of S.P. ring road. (Saradar Patel ring road is known as S.P. ring road it’s a boundary highway road which covers whole Ahmedabad.) The Surrounding lands are majority agricultural land but it’s not having much potential to grow as the slow poisons spread up to the surrounding lands since last three decades. There are lands available in today’s time Rs. 12-15,000/ Sq. Yds. But still no one is ready to purchase it as it is simply no value of money. In the process of Solid Waste Management firstly they try to distinguish organic and inorganic waste.

34. Effect of Noise Pollution • Property Value Near Airport

36. RESIDENTIAL FLAT/TENAMENT ADJOINING TO RAILWAY TRACK . Sometimes Railway track becomes beneficial as people gets compulsory one side open space; But it is true only for a line where daily only 3-4 trains are passing. Thumb Rule: If the flat or tenement is just backside or adjoining to the railway line then one should deduct 20% in market rate due to combinations of noise pollution, air pollution and constant making weak to the construction and that’s why depreciation rate increases higher than the normal building. Case Study: Here the subject flat is located in Sabarmati which is substation of Ahmedabad; where all trains coming from northern side are mandatory to arrive there. The Sabarmati is likely to become second terminal station of Ahmedabad in few months. After that the frequency of train will increase in more no. which definitely invites more noise pollution. The uneven time passing of train spoils sleep many a time, making hard for student to concentrate on studies, make pause during important conversation or talk. Overall these all kinds of problems make irritate and annoyed to person staying there. Along with noise pollution these area also becomes mixture of soil and air pollution as people use to throw dust in the backside of track in a large quantity. The said subject property flat located on the 2nd floor whose balcony is open at railway track side sold recently in December 2011. Details of Subject Property: Details of Comparable Sale Instance: OPPOSITE TO RAILWAY TRACK SAME LANE BUT AWAY FROM RAILWAY TRACK -Property: 2-BHK Resi. Flat -Property: 2-BHK Resi. Flat -Floor No.: 2nd Floor -Floor No.: 3rd Floor -Area: 105 Sq. Yds. -Area: 110 Sq. Yds. -Sale price: Rs.22,00,000/- -Sale price: Rs. 26,00,000/- -Date of Sale: December-2011 -Date of Sale: February-2012 -Sq. Yds. Rate: Rs. 20,952/- Sq. Yds. -Sq. Yds. Rate: Rs. 23,636/- Sq. Yds. Comparable sale instance where it’s on 3rd floor still has fetched 23,636 Rs/Sq. Yds. So here there is a 11.35% variation in rate but still it’s not a perfect comparison as the subject property sold is on 2nd floor and the comparable sale flat is on 3rd floor but if the comparable flat was on 2nd floor then the difference might be minimum 15% then the market rate. Conclusion: A definite 15-30% deduction in market rate for flat or tenement adjoining to the railway line.

39. Effect of a Party plot Case Study: Here there is a wadi which is a mini version of party plot located at center location in Maninagar. The Wadi’s are now a days most nuisance then to party plot; the reason is recently AMC (Ahmedabad Municipal Corporation) has made strict rules regulations for the party plots. AMC have also sealed many party plots for insufficient parking, breaking rules, noise till late night etc. But these wadies are free without any pressurize by government. Actually the problems here are more than party plots as It is affordable in price, so the frequency of programs are much higher than he party plots. Another thing party plot is small in area that’s why noise is become thicker and louder while in party plots it may spread little bit so its intensity becomes slight low. There is no. of tenements and low rise apartments present near this wadi at Maninagar. Details of Subject Property : Details of Comparable Sale Instance: MANINAGAR ADJOINING TO WADI 200 METRE AWAY FROM THAT WADI -Property: 2-BHK Resi. Flat - Property: 2-BHK Resi. Flat -Floor No.: 2nd Floor -Floor No.: 2nd Floor -Area: 132 Sq. Yds. -Area: 115 Sq. Yds. -Sale price: Rs.42,50,000/- -Sale price: Rs. 48,00,000/- -Date of Sale: February-2012 -Date of Sale: May-2012 -Sq. Yds. Rate: Rs. 32,200/- Sq. Yds. -Sq. Yds. Rate: Rs. 41,740/- Sq. Yds. Another case where there is a party plot adjoining in a central area of the city and just backside adjoining there is residential flat in Memnagar area of Ahmedabad. The similar kind of nuisance of parties, musical nights, marriages are doing over there. The said party plot is booked almost half in the year. So it’s really panic for local residential people living in that flat. The Memnager area is always a high but still no one is ready to purchase that particular flat Currently no flat is sold in recent time duration; But if it’s sell then definitely may achieve 15-20% less value than its potentiality. Currently the market rate is 45-50,000/Sq. Yds but any block from particular flat sold then might fetch 35-40,000/Sq. Yds. Only. Conclusion: Noise Pollution and other nuisance effect created by Party Plots show 22% to 25% reduction in Market Value of surrounding residential properties.

42. MOBILE TOWER ON TERRACE obile technology was introduces in 1995 in India and commercially availavle to the open market from 2002-03.. But in USA & Europe it had already introduced before 5-7 years then us & now after 22-25 years they are showing the hazardous effect related to health. The many people found brain tumor, cancer, annoying, headache, constant pain living a limited periphery of the Tower. They have confessed that they have lost the peace of their home. If we talk about India currently we are seeing a lot of effect people living nearer to the mobile tower and after few years these no. of people will increase like anything. The whole Ahmedabad is covered almost more than 2000 mobile towers. Out of which 50% towers are illegal. The highest mobile radiation emission limit in South Wales Australia is 0.00001 w/m2 while in India this limit is 9 w/m2 so its hazardous effect is almost 90,000 times stronger than Australia. None of the country is having such a high frequency then India. Thumb Rule: In USA, UK, AUS the mobile tower and its radiation effect is considered as a negative factor for residence usage due to constant generation of radiation. They reduce 10-15% on Market Value. Ideally the property which is a source of mobile radiation should be valued 25-30% less than market value and properties surrounded to that radiation generating tower should be valued 10-15% less. Case Study: In Ahmedabad there are almost 2000 towers; and some residential flats having more than one tower.. So if radiation power from one tower is dangerous then a flat having surrounded by three or four towers are really a situation same like hell. There are two twin flats named Suryaratna & Chandraratna in a well-known Ellisbridge area of Ahmedabad. Among them ‘Suryaratna’ Flat having no mobile tower on the terrace and Chandraratna is having a tower on its terrace. Both the flats are almost same and mirror images of each other accept the Mobile tower.

44. HIGH TENSION - VOLTAGE LINE PASSING THROUGH RESIDENTIAL PLOT ere there is a residential plotting scheme at west end of Ahmedabad. The said residential plots are almost 1.5 km away from the main road. But still it is within jurisdiction of Ahmedabad so definitely there is a good value. The high voltage line is passing through the edge of that plot and almost covers less than 1/5th part of the plot. The main thing is that one cannot transfer high voltage line. Thumb Rule: Whenever any kind of high voltage line is passing through residential plot there will be straightway 50% deduction in the market value. Case Study: The case study done in a well-known residential plotting scheme of Ahmedabad which is located 2 km distance from Ahmedabad. Here the sale transaction of two mirror image plots. (Except the passing of high voltage line) Details of Subject Property: Details of Comparable Sale Instance: HIGH VOLTAGE LINE PASSING NORMAL PLOT -Land Area: 450 Sq. Yds. - Land Area: 450 Sq. Yds. -Date of Sale: April-2012 - Date of Sale: May-2010 -Sale price: Rs. 16,20,000/- -Sale price 2010: Rs. 38,25,000/- -Land Rate: Rs. 3,600/- Sq. Yds. -Land Rate: Rs. 8,500/- Sq. Yds. After doing further research on this effect; I come to know that no one can use it as residential purpose. B’coz it is dangerous for health and safety, too. Conclusion: The only passing high voltage line makes the monetary value less than half. Here the damage or health hazardous effect is clearly known to the people. So this proves the highest and most deduction factor up to 50-70% in the market. The subject plot is showing 58% reduction in market rate of the same scheme.

47. Effects of Policy

48. Case Study: Whenever there is a notification or announcement of town planning scheme (T.P. scheme) in particular area; next day we are usually find 5-7% overall rise in market rate of properties. The same way reverse result is shown in this case. The authentic announcement was made that the railway line of Ahmedabad-Botad which was a Meter gauges line; the government has given approval of Broad gage conversion to the whole track. Which has made a negative impact on market rate and the rates have fallen down little bit. If rates have not decreased in some of properties then the selective no. of interested buyers are decreased for the said property. Because previously there were 4-5 mini trains passing hardly; and now after completion of broad gauge line there will minimum 20-25 trains will pass including goods trains, too. This notification was announced just a month ago. And currently the effect is seen in the market. There is a penthouse at Tirthsagar apartment which is located just below the railway line and normally the minimum distance of a flat from the building is 30 meter or 100 ft from central line of track. The said flat is only 45-50 ft means it is already in the limitation criteria. Details of Subject Property: Details of Comparable Sale Instance: -Tirthsagar Flat: Penthouse -Rajpalace Flat: Penthouse -Super Built up Area: 275 Sq. Yds . -Super Built up Area: 210 Sq. Yds. -Date of Sale: Begining-2010 -Date of Sale: May-2010 -Sale price 2010: Rs. 87,00,000/- -Sale price 2010: Rs. 45,00,000/- -Sale price 2012: Rs. 95,00,000/- -Sale price 2012: Rs. 65,00,000/- -Appriciation: 9% in 3 years -Appriciation: 44% in 3 years Conclusion: It is found that there is reduction in appreciation rate of M.V. of property 9% appreciation in affected area & 44% appreciation in less affected area due to conversion of meter gauge railway line into broad gauge railway line.

50. POSITIVE EFFECTS OF GOOD ENVIRONMENT Case Study: East Ahmedabad all the area is polluted due to over growth of industries and factories and the owners of these factories are leaving in their bungalows at West Ahmedabad. These owners were living in the same area of East Ahmedabad 25 years ago but later on they have migrated to West Ahmedabad and left the pollution in Eastern part of Ahmedabad. Now days accept Shahibaugh none of area from Eastern Ahmedabad can compete with West Ahmedabad. WEST AHMEDABAD --- GREEN AHMEDABAD --- HIGHER LAND VALUE