APPRAISAL OF REAL ESTATE

STELLAR GYMKHANA CLUB

Greater Noida 

Members:
Anubha Singhal
Paresh Agarwal
Pawan Prakash
Raymon Prakash
Richa Chouksey
 Location : Greater Noida is located in the Gautam Budh
LOCATION BRIEF                 Nagar district of Uttar Pradesh, 
               located 28° 29' to 28°49' North latitude, and
               77° 30‘ to 77° 51' East longitude

 It comes under the purview of the SECTION QUANTITY/VALUE

National Capital Region (NCR) of Area
Total Geographical Area 1442 Sq. km
India. 
Administration
 Gautam Budh Nagar is bound by
Tehsil 4
Ghaziabad in the north, Delhi in the Revenue Villages 3
west, Aligarh in the south, Land Use Pattern
and Bulandhshahar district in the east.  Total Area 71000 Hectare
 The district comprises of 4 tehsils which Non-Agricultural Land 5301 Hectare
are Noida, Dadri, Dhankaur, Population (Census 2011)
and Surajpur.  Total Population  16,48,115
 The District is newly created in the year Men 8,90,214
1997 from portions of Bulandshaher and Women 7,57,901
Ghaziabad districts. 
LOCATION BRIEF 
Regional Overview 
Connectivity

 NH-24 (Delhi-Lucknow)
 NH-58 (Delhi Haridwar-Mana Pass)
 Greater Noida to Agra – Yamuna Expressway
 Greater Noida to Delhi – 8 lane Expressway
 Eastern Peripheral Expressway (Kundli-Ghaziabad-Noida-Palwal) 
 Delhi Mumbai Industrial Corridor (DMIC) - connecting Greater Noida to other states

 Dadri Railway Junction here the Eastern and Western Freight Corridors meet

Proposed Development
 A Metro Rail network is to be developed between Noida and Greater Noida.
 A high-speed Metro Rail line is also proposed from Greater Noida to Indira Gandhi International airport.
LOCATION BRIEF 
Regional Overview 
Industrial Hub

 Industrial investment Greater Noida is now over Rs. 10,000 crores

 Privatized power distribution system, ensuring efficient power supply
 Automobile and automobile component manufacturers 
 Industrial majors such as Delphi Automotive Systems, Yamaha Motors, Honda Seil, and Moser Baer
have selected Noida as an industrial base.
Pari Chowk

Pari Chowk is a bustling area and a significant landmark in Greater Noida. It is one of the oldest real estate
hotspots in the city and a well-known area. Several special incentives are provided to industries here,
including speedy clearances and approvals, and incentives to promote early commissioning of projects. An
effective single-table functioning guarantees project clearance within a month and an empowered committee
continuously monitors the progress of these projects. 
http://www.greaternoidaauthority.in/industrial
LOCATION BRIEF 
Regional Overview 
Status of power, water, wind and rainfall in the region
Aspect Status Significance for Stellar Gymkhana Club
Electricity Greater Noida’s power is distributed by Power back up (generators) to be designed
availability Noida Power Company Limited keeping emergency and essential services /
(NPCL). equipment in mind.
Several solar power plants are coming
up in the area. 
12 new substations are being built in
the city. 
1,320 MW plant to be set up, which
will provide 24x7 power supply in
Greater Noida.

Rainfall Average annual rainfall: approx. 700 Should estimate capacity of rainwater
mm. harvesting.
Monsoon season: June – September

 http://www.greaternoidaauthority.in/ganga 
 Ministry of Water Resources
LOCATION BRIEF 
Regional Overview 
Status of power, water, wind and rainfall in the region
Aspect Status Significance for Stellar Gymkhana Club
Water availability To ensure availability of water on a daily
Greater Noida Authority is responsible basis, club will also have to dig a borewell.
for water supply in the area.  This would require permission from Central
Proposed Ganga Water Project Ground Water Board.
bringing water from the Ganga to
Greater Noida.
Ground water level at 13.2m in
Gautam Budh Nagar; groundwater
level in Noida is falling by 1 meter
every year.
Wind flow Wind speed varies from 0m/s to 7 m/s, Should maximize natural ventilation.
rarely exceeding 11m/s.
Relative humidity ranges from 17% to
95%.
Greater Noida is located 200 meters
above sea level.

 http://www.greaternoidaauthority.in/ganga 
 Ministry of Water Resources
LOCATION BRIEF 
Demographic Profile 
Parameter Percentage Value
Gautam Budh Nagar district – Population Growth (2001-2011)
Total Population - 16,74,714 
Female Population 46%  7,57,901 
Male Population 54%  8,90,214 
growth of population in the
district (2001-11) 40% -
urban decadal growth
rate (2001-11) 125.52% -
population density of the
district  - 1,187 persons / sq. km
The rapid population growth in Gautam Budh Nagar is attributed to the vast development that has taken
place in Noida and Greater Noida. These cities have become industrial hubs, with the development of
electronics, textile, engineering, IT, automobile and other industries. World class infrastructure in these
cities, coupled with excellent connectivity to Delhi is attracting several people to the district. 
http://censusindia.gov.in/2011-prov-results/paper2/data_files/UP/6-exe-summery-9-11.pdf http://ncrpb.nic.in/pdf_files/Draft%20Revised
%20Regional%20Plan%202021/06%20Chapter%204%20Demgraphic%20Prof ile%20and%20Settlement%20Pattern-26%20july%202013.pdf
LOCATION BRIEF 
Demographic Profile 
Parameter Percentage Value
Gautam Budh Nagar district – Rural Budh Nagar district 
Urban Population 59%  9,88,081
Rural Population 41%  6,86,633
Male Population (Urban) 54%  5,33,564
Female Population (Urban) 46%    4,45,517 
Male Population (Rural) 53%  3,63,915
Female Population (Rural) 47%  3,22,718
Sex Ratio - 851 females/ 1000 males
Literacy Rate
Total Literate Population 80%
Male Literacy 88%
Female Literacy 70%
At the district level, the number of literates has increased by about 12% from year 2001 to 2011. The
male and female literates increased by 7% and 17% respectively during this period
Census 2011
 SITE
Stellar Gymkhana Club has been incorporated in Greater
Noida near Pari Chowk. The Stellar Gymkhana is an
exclusive Club, promoted by Stellar Parks Pvt. Ltd. This
urban retreat is to be found nestled in 12-acres of a pure
verdant stretch along the Greater Noida Expressway. 
Far away from the maddening cacophony of city crowds,
The Stellar Gymkhana is a great place to host corporate
events – from small private functions to larger banquets.
Rolling lawns, large indoor venues and ample parking, not
to mention the absolute absence of any pollution
whatsoever, all combine and contribute to making the
simplest of your functions truly memorable. 
 The Appraisal Institute defines highest and best use as
HIGHEST AND follows: The reasonably probable and legal use of vacant
land or an improved property that is physically possible,
BEST USE  appropriately supported, financially feasible, and that
results in the highest value. 

APPLICABILITY TO STELLAR
ATTRIBUTE DESCRIPTION
 GYMKHANA CLUB
Legally Zoning, building codes, setback requirements, leases, deed Land use provisions permit
Permissible restrictions, easements, and environmental regulations can residential, mix use and institutional
all limit land uses, which can be significant in some purposes, therefore it is legally
appraisals. Testing for legal permissibility requires you to permissible to open a stellar
have a working knowledge of local zoning ordinances and gymkhana club near Pari Chowk.
how to research deeds. It is a common error by some
appraisers to assume that the current use is a legal use. This
is often not true.
HIGHEST AND BEST USE 
APPLICABILITY TO STELLAR
ATTRIBUTE DESCRIPTION
GYMKHANA CLUB
Physically Any use suggested as the highest and best use must be It was physically possible to locate the
Possible physically possible. This criterion is usually the easiest to club near Pari chowk.
test. The proposed use must fit on the site, the soil must be
solid enough to support any improvements, and
the topography must be adequate to allow the use.
Financially A sensible person would only consider profitable uses of a The surrounding area majorly consists
Feasible property, which is the essence of the test of of educational institutions and
financial feasibility. A parcel of raw land usually has more residential apartments and moreover
than one financially feasible use—such as an office demographic profile of the area clearly
building or an industrial facility—if both of those uses are indicates that this premium club won’t
physically possible and legally permitted.  be financially feasible. 
Maximally Like financial feasibility, the maximum productivity Since the area has lot of educational
Productive criterion requires that the highest and best use be institutions, businesses like cafes, pub,
profitable. The maximally productive use is the one amusement parks, paying guest
alternative of all possible financially feasible uses that accommodations will generate more
produces the maximum benefit to the owner.  revenue.
HIGHEST AND BEST USE OPTION
Use Description
Legally Physically Possible Financially Feasible Maximally Productive
Permissible
Residential
Residential Land use will Abnormal shape of the Neighborhood area is Site area can be utilized to build
Apartment require site may complicate residential, hence it can be around 500 flats which may
Building conversion planning financially feasible produce substantial capital
Row Housing No. Of units will be limited to
70 impeding the maximum
potential of the site.
Commercial
Mall Existing land Abnormal site shape will Since the surrounding area are The area around already
Shopping use is complement the dynamic residential and institutional, includes enough malls and
Complex commercial form hence such project can be other shopping complex to
financially feasible cater the neighborhood needs.
HIGHEST AND BEST USE OPTION
Use Description
Legally Physically Possible Financially Feasible Maximally Productive
Permissible
Educational
Institute of Previously the Any institutional building The area includes many Since it’s a unique typology, it
Science and land use was is physically feasible on institutes of engineering and may attract students but
Liberal Arts In-situational, site. medicine, but science and maximum potential cannot be
hence land liberal arts would be unique promised, as liberal arts is a
use rare interest among student.
School conversion is The neighborhood residential The project needs to be a
(Primary to acceptable will complement the proposal recognized institute for
Senior) of school. maximum potential
Office Building
Corporate Existing land Abnormal site shape will The area does not include any Corporate Office can serve its
Office use is complement the dynamic corporate office building hence maximum potential in the area
commercial form the project is unique with as its unique and the area is
respect to its use and type well developed
HIGHEST AND BEST USE OPTION
Use Description
Legally Physically Possible Financially Feasible Maximally Productive
Permissible
Recreational
Community Existing land The build can be managed Strategic location will The demographic profile of the
Centre use is with the existing build complement the use making area holds potential to
commercial project financially feasible maximize productivity.
Sports Club Large student footfall, will make
proposal financially feasible
Hospitality
Hotel Existing land Abnormal site shape will The dining and accommodation The project if developed
use is complement the dynamic facility, corner location both will potentially in respect to
commercial form make this project financially planning and luxurious facility,
feasible. may extract maximum
productivity.
HIGHEST AND BEST USE OPTION
Use Description
Legally Physically Possible Financially Feasible Maximally Productive
Permissible
Mixed Use
Residential Land use will Abnormal shape of the Combination of residential and If utilized to its maximum
cum require site may complicate commercial use is financially potential, 430 flats and 55
Commercial conversion planning feasible on the site with corner commercial shops can be
location and residential developed for maximum
neighbor-hood. productivity.

SUMMARY FOR HIGHEST AND BEST USE

PROJECT NPV IRR
Residential Project (79,18,02,555.69) -4.42%
Residential cum Commercial Project (45,81,34,642.67) 2.14%
Corporate Office 1,36,96,87,962.24 14.09%

According IRR, Corporate Office is giving the maximum IRR of 14.09%. Hence, Corporate Office is considered for
highest and best use.
 VALUATION APPROACHES    The market approach provides an indication of value
AND METHODS  be comparing the asset with identical or comparable
  (that is similar) assets for which price information
MARKET APPROACH is available. 

Comparable Transactions Method  

The comparable transactions method, also known as the guideline transactions method, utilises information
on transactions involving assets that are the same or similar to the subject asset to arrive at an indication of
value.

Guideline Publicly Traded Comparable Method

The guideline publicly-traded method utilises information on publicly-traded comparable that are the same
or similar to the subject asset to arrive at an indication of value.
 VALUATION APPROACHES The cost approach provides an indication of value using the
AND METHODS  economic principle that a buyer will pay no more for an asset
than the cost to obtain an asset of equal utility, whether by
purchase or by construction, unless undue time,
COST APPROACH inconvenience, risk or other factors are involved. 

Replacement Cost Method - Replacement cost is the cost that is relevant to determining the price that a
participant would pay as it is based on replicating the utility of the asset, not the exact physical properties of
the asset. Usually, replacement cost is adjusted for physical deterioration and all relevant forms of
obsolescence. After such adjustments, this can be referred to as depreciated replacement cost.

Reproduction Cost Method - Reproduction cost is appropriate in circumstances when the cost of a modern
equivalent asset is greater than the cost of recreating a replica of the subject asset, or the utility offered by the
subject asset could only be provided by a replica rather than a modern equivalent.

Summation Method - The summation method, also referred to as the underlying asset method, is typically
used for investment companies or other types of assets or entities for which value is primarily a factor of the
values of their holdings. The key steps in the summation method is to value each of the component assets that
are part of the subject asset using the appropriate valuation approaches and methods, and then add the value
of the component assets together to reach the value of the subject asset
 VALUATION APPROACHES The income approach provides an indication of value by
AND METHODS  converting future cash flow to a single current value. Under
the income approach, the value of an asset is determined by
INCOME APPROACH reference to the value of income, cash flow or cost savings
generated by the asset.

Although there are many ways to implement the income approach, methods under the income approach are
effectively based on discounting future amounts of cash flow to present value. They are variations of the
Discounted Cash Flow (DCF) method and the concepts below apply in part or in full to all income approach
methods. 

Discounted Cash Flow (DCF) Method 

Under the DCF method the forecasted cash flow is discounted back to the valuation date, resulting in a
present value of the asset. 50.3. In some circumstances for long-lived or indefinite-lived assets, DCF may
include a terminal value which represents the value of the asset at the end of the explicit projection period.
In other circumstances, the value of an asset may be calculated solely using a terminal value with no explicit
projection period. This is sometimes referred to as an income capitalisation method.
 LAND AND SITE
VALUATION 

Sale Comparison
The preferred method of land valuation is based on the analysis of historical prices paid for sites similar to
the subject by willing buyers and sellers in an open market. If an investigation of historical market data
shows that several vacant commercial sites on the subject property’s block sold for $5.00 per square foot of
usable area, then it would be reasonable to assume that the subject would sell for a similar amount.

Market Extraction 
This method is used to estimate land value when there are few or no comparable land sales in the subject’s
area or in competing areas. The Methodology is to research recent comparable sales of improved properties
in the subject’s area. Then an estimate of reproduction cost is developed for each sale property and subtract
both the appropriate amount of depreciation and the net value of the site improvements from the gross price.
The remainder is the indicated value of the lot. This method is useful in appraisals in which the land and
locational attributes of comparable are very similar to the subject, but extraction of land value is less
accurate when the subject and comparable have very different attributes. 
LAND AND SITE VALUATION 
Allocation 
Allocation is another technique used by appraisers when they need an opinion of land value but cannot find
any recent land sale comparable. The allocation method is a ratio technique in which improved property
sales and vacant land sales in an area that competes with the subject are researched. A ratio of land value to
property value is then established and applied to the subject’s area. Some appraisers also support the ratio of
land value to building value using assessor’s records. 
Allocation is based on the theory that land value is a function of the entire property value. Also, the subject
and comparable properties must be improved to their highest and best use to prevent any loss in value due to
an inconsistent use. If the subject is improved to its highest and best use and a comparable is not, the analysis
can be skewed. 

Direct Capitalization: Ground Rent Capitalization 

Ground rent capitalization is simpler and much more commonly used than the land residual technique.
Comparable land sales with similar lease rates and terms are usually difficult to find, so ground rent
capitalization may be the only viable technique available to estimate the land value of properties for which
the lease income is the most significant attribute. This technique is useful in many land lease situations and
requires few subjective inputs.   
LAND AND SITE VALUATION 
Direct Capitalization 
To develop an estimate of land value, the land residual method partitions the income into income attributable to the
building and income attributable to the land. This technique is difficult to apply because it requires data that can be
almost impossible to find in many markets. You must know the building value, the building capitalization rate, the net
operating income of the property, and the capitalization rate for the land. The land capitalization rates are further
complicated by differences in the risk associated with some leases. After gross income is estimated and expenses are
subtracted, net operating income (IO) can be divided into land and building components. The overall capitalization
rate (RO) is the ratio of a property’s net operating income to the lump-sum value or sale price, so this ratio can be
used to estimate the income of a component if the component’s value is known.  

Yield Capitalization: Subdivision Development Method (DCF Analysis)-

Subdivision development analysis is based on a discounted cash flow model using the sales of residential,
commercial, or industrial lots as the cash flow and the absorption period as the holding period. The value of
development land is based on the number of lots that can be developed from it. This technique is applicable in most
markets but is complex and therefore used less often when vacant land sales are common and plentiful. This
technique requires a large number of calculations, which makes it more cumbersome and less persuasive than direct
sales comparison analysis. If comparable sales or listings are available, most appraisers use them in sales comparison
analysis rather than apply the more complicated and subjective subdivision development technique.
LAND AND SITE VALUATION 
Analysis of Comparables

Cost Comparable

Other site attribute

comparables

www.99acres.com
ANALYSIS OF SUBJECT SITE ADJUSTEMENTS 
1. Location/Corner Influence

As indicated earlier that the subject property is in a corner plot. Moreover, it is at a walking distance from
the railway station quite like comparable property 4. Since corner plots and connectivity raises the price of
commercial land, hence the value should be adjusted upwards. Comparable 1,2,3,4 do not have corner
plot.

2. Zoning/Entitlements

The subject site has a zoning for residential, commercial, and mixed use.

3. Easements/Entitlements

Factors such as easements, encroachments, etc. can reduce the overall utility of the site and thus reduce its
net usable area. Comparable 1, 2, 3, and 4 are not negatively impacted by any easements or
encroachments.
ANALYSIS OF SUBJECT SITE ADJUSTEMENTS 
4. Physical Characteristics (Size/Shape/Topography)
Adjustments for size differences are often made on the premise that a purchaser would pay more per
square foot for a smaller site than for a comparable with a larger site and vice versa (with the
knowledge that all other factors were equal). This is commonly referred to as "economies of scale.”
This relationship can sometimes be voided with commercial sites that are too small for commercial use
that would otherwise be the highest and best use of the site. The shape of the subject property is
quite irregular therefore the value must be adjusted downwards. Moreover, it is located near a
waterbody hence, special attention must be given to the foundation of the building.
5. Street Improvements/Site Hookups/Special Assessments
The existence of street improvements such as paved streets, curbs, sidewalks, storm drainage,
streetlights can add value to a site if these items are already in place. While an adjustment for the
existence of these items may be indicated, there added value can be offset if the property owner is
required to pay for these items in the form of special assessments. The road near our subject property
is properly build unlike comparable 1,2 .
The availability of hookups to the site such as water, sewer, gas and electric can also influence value
considerations. A site that has hookups to the site will be valued more than a site that has to make
those hookups some distance away (all other things being equal). The subject property has electricity
and water utilities, however comparable 1,2,4 do not have.
VALUATION ESTIMATE 
It is inferred that comparable 4 is quite like that of our subject property, but upward adjustments have
to be made for corner plot, well-built road, provision of utilities like water and electricity.
However, downward adjustments must be made for irregular shape, near a water body and cost
required to demolish the current structure.

An upward adjustment of 9% is made to the rate of comparable 4 to get the rate of our property.

Adjusted Rate : 66981/-

Area (sq. m) : 48562.3

Value : 325,27,51,416/-
VALUATION ESTIMATE 
It is inferred that comparable 4 is quite like that of our subject property, but upward adjustments have
to be made for corner plot, well-built road, provision of utilities like water and electricity.
However, downward adjustments must be made for irregular shape, near a water body and cost
required to demolish the current structure.

An upward adjustment of 9% is made to the rate of comparable 4 to get the rate of our property.

Adjusted Rate : 66981/-

Area (sq. m) : 48562.3

Value : 325,27,51,416/-
LAND AND SITE VALUATION – Cost Approach 
VALUATION OF STELLAR GYMKHANA CLUB USING COST APPROACH
COST OF LAND

Area of Land (in acre)                          12.00 

Area of Land (in sq. m)                  48,562.32 
Rate of commercial land (per sq. ft)                    5,669.00 
Rate of commercial land (per sq. m)                  61,020.55 
Total Cost of Land     2,963,299,431.97 

COST OF BUILDING

Approximate Built-up Area(sq. m)                    5,552.00 

Approximate Cost of Construction for Luxury Club(per sq. m)                  31,000.00 
Total Cost Building        172,112,000.00 

TOTAL COST OF STELLAR GYMKHANA CLUB

Total Cost of Land     2,963,299,431.97 

Total Cost Building        172,112,000.00 
Total Cost of Club     3,135,411,431.97 
CONCLUSION
As per the Analysis, proposal for Corporate Office was found to be the Highest and Best Use with positive NPV
and highest IRR.

The subject, at this point, has been considered and analyzed with all data and factors which are believed to have an
influence on its value. In valuing the property, one approach is used.

Value as of 12 December 2020

Three Hundred Twenty-Five Crores Twenty-Seven Lakhs Fifty-One Thousand and Four Hundred and Sixteen Only
(325,27,51,416/-).
THANK YOU
COST OF DEMOLITION
COST OF DEMOLITION
   
Approximate Built up Area(sq. m) 5,552.00
Approximate Built up Area(sq. ft) 59,761.17
Volume of RCC per (sq. ft of BUA)(in cubic m) 0.038
Total Volume RCC (cubic M) 2,270.92
Cost of Demolition and Disposal (per cubic m) 2300
Cost of Demolition 52,23,126.50
Contingency 10%
Total Cost of Demolition 57,45,439.15