PART A: Commercial Sector Details
1. Chandigarh City Profile
1.1 Location
Chandigarh is located near the foothills of the Shivalik ranges of the Himalayas in Northwest India. It covers an area of approximately 114 sq kms and shares its borders with the states of Haryana in the south and Punjab in the north. The exact cartographic coordinates of Chandigarh are 30.74° N 76.79° E. The surrounding districts are of Mohali and Ropar in Punjab and Panchkula in Haryana. The boundary of the state of Himachal Pradesh is not too far from the north of Chandigarh.
1.2 Connectivity:
Chandigarh is very well connected to the state of Punjab, Haryana, and Himachal Pradesh. The city is directly connected to Delhi by National highway 22, which connects it with Shimla too. NH 21 and NH 64 connect Chandigarh with the state of Punjab.
Chandigarh also acts as a gateway to many tourism and pilgrimage centers in the neighboring states of Himachal Pradesh, Jammu & Kashmir, Punjab and Haryana.
Map 1: Regional Connectivity Map Chandigarh

By Road Transport:
Several State road transport corporations connect Chandigarh with major cities and towns of the neighboring States, Punjab, Haryana & Himachal Pradesh.  The bus stand is in the center of the city (sector 17).
By Train:
Chandigarh is linked with its principal gateway city, Delhi. Chandigarh railway station is 8km from the city center in sector 17. Other important and long distance trains are also connected from various parts of the country.
By Air:
Indian Airlines, Jet Airways, Jagsons, Raj Air are the major airlines, which serve daily flights to the city. The airport is 11 kms from downtown. Taxis are available for airport transfer.
Map 2: Master Plan  - Chandigarh

1.3 Master Plan Chandigarh:
The city center (Sector 17) is the heart of Chandigarh activities. It comprises the Inter- State Bus Terminus, Parade Ground, District Courts, etc. on one hand, and vast business and shopping center on the other. The 4-storey concrete buildings house banks and offices above and showrooms/shops at the ground level with wide pedestrian concourses. The Neelam piazza in the center has fountains with light and water features. A proposal to set up an eleven storey building in Sector 17 is in the offing. Sector 34 is another newly developed commercial sector.
Real estate in the study region largely has been governed by the Development Authorities for a long period of time and the role of private developers has been marginal in the study region. Chandigarh Administration, HUDA & PUDA are the major developers involved in real estate development. Although this kind of model has ensured the lesser investment risks for individual small time investors but has slowed down the process of development and lesser options available for the buyers. As per the Chandigarh administration, Chandigarh has been divided into three phases, as per its developmental activities i.e. Phase I (Sector 1-30), Phase II (Sector 31-47), Phase III (Sector 48-56). But as per the plot area and character of the city has been divided into following ones.
Map 3: Pattern of Urban growth

2. Demographic & Socio Economic Profile
2.1 Demographic Profile
Chandigarh was planned for a population of half-a-million. In Phase I, 36 sq kms of land was acquired by the city administration for construction of 30 sectors. Land for seventeen additional sectors (Sector 31 to 47) was acquired and developed during the second phase to cater for a population of 3,50,000. The predominance of ¾ storey apartments in the second phase provide for higher population dimension. However, Chandigarh has now grown beyond its planned capacity. Hence, development in the third phase has started in sectors 48 and beyond. The Union Territory of Chandigarh has a total area of 114 sq. kms and has witnessed decadal population growth (1991-2001) of 44.33%. It had a population of 8,08,515 in the last census (2001). By 2021 the population of Chandigarh is projected to be around 19.5 lakhs (at current rate of growth), which is approx. four times the planned capacity of the city.
2.2 Socio-Economic Profile
The resident population of the city has a relatively higher level of high-income group and medium income group as compared to the median city in India.
Development Profile of City
2.3 Strategic Important Zones & Emerging Growth Corridors
Real estate in the region largely has been governed by the Development Authorities for a long period of time and the role of private developers has been marginal in the study region. Chandigarh Administration, HUDA & PUDA are the major developers involved in real estate development in the region (HUDA in Haryana and PUDA in Punjab). Although this kind of model has ensured lesser investment risks for individual small time investors, it has slowed down the process of development and lesser options available for the buyers. Chandigarh city, with a strong economic base and a considerable number of upper middle and high-income groups of population, offers wonderful propensity to the prospective national and international investors. The advantages that Chandigarh Offers over other major cities of the region are:
• Geographically, the city is located at the foothills of Shivalik, so it enjoys good regional linkages and connectivity with important cities of Punjab, Haryana, Himachal and also well connected with Delhi. This is one of the biggest reasons to invest in the city.
• Chandigarh is fast becoming an IT hub, which attracts the population and has become a reason for the investment driven market.
• Chandigarh has a sound environment as far as law and order is concerned.
• The city is prosperous and its people have very high paying capacity and hence can support high-end retail and entertainment activities. This can be concluded on the basis of the fact that Chandigarh has the highest per capita income in India.
Map 4: Map showing major Growth Corridors of the City

3. Retail Sector Overview
Chandigarh and its surrounding cities (includes Mohali, Panchkula, Mani Majra, Kharar, Zirakpur and Dera Bassi) are prime targets for various developers for the development of retail and entertainment projects. Since the city mostly accommodates the higher income group population, it seems more feasible to develop quality retail and entertainment destinations in and around the city. At present, all the retail activities in Chandigarh, Panchkula and Mohali exist in the form of booths, bay shops, double story shops and SCO’s and SCF’s located in designated commercial areas and at three levels viz. Community Shopping Center at neighborhood level, Sector level markets and City Center Market that caters to the needs of city level shopping needs. Sector 17 market in Chandigarh and Dhillon Fun Republic in Mani Majra are the only operational destination points for the visitors and buyers.
Map 5: Map showing High Street Retail Area in Chandigarh region

3.1 High Street Retail Zones
Chandigarh has always been “The best choice” for the shoppers from Punjab, Haryana and Himachal Pradesh, which comprise of a catchment population with high disposable incomes. This has fuelled the demand of retail spaces in this region. The prime retail areas can be classified as North, Central, South & East.
Table 1: Retail Zones

3.2 Organized Retail Scenario
With the increasing demand for organized retail markets of international standard, various theatres and cinema halls in the city are transforming to multiplexes, shopping centers and entertainment plazas. Jagat theatre in Sector 17 has recently been developed on the similar lines, where the TDI Group has acquired the cinema plot for the development of TDI multiplex, with a total built up area of approx 85,000 sq feet with Fun Republic as the multiplex operator. It has occupied almost half of the total built up area. Besides 4 screens, the shopping mall also has almost 70 shops and commercial establishments. The leisure area would have food courts and games for the entertainment of the visitors.
Table 2: Location of Organized retails

4. Case Study: DLF City Center
DLF’s City Centre retail-cum-entertainment complex is located in close proximity to the Chandigarh Infocity Park, Rajeev Gandhi Technology Park and the residential and recreational area of Mani Majra and Panchkula.
Map 6: Location Map of DLF City Center

4.1 Location
Chandigarh Technology Park, Kishangarh – near the City Railway Station, at the foothills of the Shivalik Hills
4.2 Area
190,000 square feet
4.3 Accessibility
Close to Sector 26 and 28, it is a 15 to 20 minutes drive from Sector 17 and 21 – the retail hub of Chandigarh
4.4 Connectivity (approximately)
247 kms from Delhi
99 kms from Ludhiana
234 kms from Amritsar
220 kms from Shimla
4.5 Components
Retail Arcade, Cafes, Food Court and Multiplex
Map 7: Layout Plan of DLF City Center, Chandigarh

4.6 Catchments
Sector 17, 21, 26 &28 of Chandigarh and satellite towns of Mani Majara and Panchkula
4.7 Number of Floors
G + 2
4.8 Parking
220 (approximately)
4.9 Shop Sizes
The Shop Sizes range from 572 square feet to 3,655 square feet.
4.10 Salient Features of the Mall:
1. Elegant front elevation
2. 34 feet wide atrium
3. 3 screen multiplex and a multi-cuisine Food Court
4. 24 hours CCTV security surveillance
5. Approximately 18 lakhs sq feet of IT campus with companies like Infosys, IBM, HP, Virsa Systems, Onicra, Winshuttle, Net Solution, Outerbay, Taurus, Q A Infotech, Esys, ICICI Prudential, Airtel and Mahindra Tech.
4.11 Retail Summary

4.12 Floor Plans
Map 8: Ground Floor Plan                                                                        Map 9: First Floor Plan

Map 10: Second Floor Plan

PART B: Marketing Strategy
1. Introduction
A marketing strategy serves as the foundation of a marketing plan. A marketing plan contains a list of specific actions required to successfully implement a specific marketing strategy.
 A strategy is different from a tactic. While it is possible to write a tactical marketing plan without a sound, well-considered strategy, it is not recommended. Without a sound marketing strategy, a marketing plan has no foundation. Marketing strategies serve as the fundamental underpinning of marketing plans designed to reach marketing objectives. It is important that these objectives have measurable results.
A good marketing strategy should integrate an organisation’s marketing goals, policies, and action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to provide a foundation from which a tactical plan is developed. This allows the organization to carry out its mission effectively and efficiently.
2. Retail Strategy
2.1 Retail Development Initiatives
• Redefine traditional shopping by offering leisure destinations for the family.
• Introduce new retail brands for greater customer selection and satisfaction.
• Partnering with top international and national brands, to create destination shopping centers.
• Implementing companionship leasing to facilitate convenient retail store expansion networks within Indiabulls shopping centers.
2.2 Defining Trade Area
Defining a Trade Area for a site is critical, as the Trade Area highlights the potential market for a specific site. 
The concept of a trade area is to highlight the area from where visitors who make the great majority of sales at a given site reside.
Factors affecting the trade area size include
• Location of competition
• Travel times
• Physical boundaries
• Psychological boundaries
Once the trade area has been created the task of determining the market sophistication of trade area residents can begin
2.3 Determining Market Sophistication
Once the above mentioned market analysis has been completed the market sophistication can be determined through a comparative analysis
1. The subject market could be compared to other markets where a track record of retail success has been established. 
2. If no comparison is possible the level of market sophistication can be determined though an analysis of the available data     gathered.
3. Through the market data gathered, create a profile of the average consumer from this market and design the mall based on this     consumer profile
The average consumer profile should include:
1. Level of employment
2. Family size
3. Entertainment
4. Vehicle
5. Disposable income
6. Preferred shopping habits
7. Preferred brands
Through the definition of the average consumer, it is possible to create a range of the expenditure potential of the market area

3. Case Study: Mall cum Multiplex Site in Chandigarh
3.1 Location: The site is located on ‘Plot Nos. 29 & 29A, Industrial Area Phase–I, Chandigarh’, towards South West of city on an 80 feet wide road connecting Madhya Marg.

3.2 Present Land Use/Site Situation:
1. Office and shed of a Hume pipe industry are present on site, which would be demolished before the possession is taken. 
2. The site has a boundary wall, which extends at the rear side to encroach approximately a 100 feet wide strip of land, which was     demarcated as railway siding under some scheme.
3. A High Tension Line of running load 170 amps (11kw) crosses through this encroached area.
4. Some transmission lines for supply to the present industry are supported on two electric poles within site.
3.3 Immediate Surroundings:
• Front-80’ Wide Road
• Left-Bhushan Steel Industry
• Right-A Green Belt
• Rear-Office and Sub-Station of Bhakra-Beas Management Board (BBMB)
3.4 Distance from Commuting Points:  Inter State Bus Terminal (Sector 17) – 4.5 Kms
                                                              Railway Station – 1Km
                                                              Airport – 5 Kms
3.5 Site Features

• Shape & Dimensions: The site is rectilinear in shape with the front edge tapered and the dimensions as shown in illustration.

• Terrain: The site has a plain terrain and is about 2’-3’ below the road level. It does not have any particular slope. Also, there are    no elevations or depressions on the site.

Total FSI Area: 24558.16 X 2= 49116.32 Sq Yards OR 41067.15Sq Meters
Permissible Height: 30 meters
Permissible Ground Coverage: 50%
Ground Coverage Achieved: (50/100) X 24558.16 = 12279.08 Sq Yds                                                   
Setbacks:
• Front – 100’ or 30.48 Meters
• Side – 40’ or 12.19 Meters
• Rear – 30’ or 9.14 Meters
Parking requirement: FSI Area = 41067.15Sq Meters
• ECS Requirement 41067.15/ 50 = 832.143 ≈ 833 ECS
• Space Requirement 833 X 27.87 = 23215.71 Sq Mts

3.6 Strategy for Commercial Property in Chandigarh
3.6.1 Chandigarh Market Overview

3.6.2 Chandigarh Market Overview

3.6.3 Chandigarh Tenant Mix by Level with Unit Count  (Sqft)

Devesh Srivastava - Indian Express

In a recent letter to the HDFC shareholders, the chairman of HDFC, Deepak Parekh slammed developers for not differentiating between super built-up area and carpet area (internal wall to wall area) of the houses that they sell. He further said that developers misguide buyers by selling on the basis of super built-up area, without clearly mentioning how much is the carpet area. Parekh added, “There are instances where the difference between the carpet and super built-up area is as high as 50 per cent. Bifurcating the carpet area and common amenities increases transparency in the transaction. Ironically, though some states have legislation for flats to be sold on the basis of carpet area, what is lacking is enforcement.”
If experts like Parekh feel that carpet area should be the basis of transactions then why do developers charge buyers on the basis of super built-up area? In Delhi, the authorities are following the recommendations of new the Master Plan of Delhi 2021 (MPD 2021). But these are not enforced. 
 
Buyers pay extra
Anuj Puri, chairman and country head, Jones Lang Lasalle Meghraj says, “Building bylaws and regulations differ from state to state and even city to city. However, it invariably turns out that property buyers are required to pay for construction that falls in FSI-free areas—areas of congregation, passage, and common conveniences. In a typical project, these areas do not tend to constitute more than 15-20 per cent of the overall FSI. Nevertheless, all that a buyer would really wish to pay for is the exact amount of space available for personal use in the property—in other words, the carpet area.” However, as Puri says, you can’t have a house without walls so the buyer ends up paying for the space occupies by the walls as well occupy, by this criterion, he buyer will have to pay for built-up area. Puri contends, “This is, of course, unavoidable.”
Also, if one takes an example of any of the projects in the country, he will find by a simple calculation that he is being charged extra. Let us say the developer is charging Rs 2,500 per sq ft as a basic rate. The buyer is interested in buying an apartment of 1,250 sq ft. So the value of the apartment stands to be Rs 31.25 lakh (Rs 2,500 sq ft X 1,250 sq ft). But this does not include the parking charges and maintenance charges. The price calculated does not include the preferential location charges (PLC) either.

Optionals have become mandatory
Pradeep Mishra, a real estate consultant says, “Developers fix the price on their own. Charging PLC is not logical. Sometimes developers charge a PLC on the ninth and tenth floor also. The reason they give is that the apartment is facing a green, when in fact the green is just a small park in the centre of the project. Moreover, the developer charges PLCs on corner and road-side flats also. Usually, there should be PLCs only for ground floor apartments.”
The preferential location charges are usually 5 to 20 per cent and developers adds their cost to the price of the apartment.
Puri of JLLM says, “In yet another twist to the situation, the developer adds facilities (read common spaces) to the area of the apartment, which the law does not require him to.” He adds, these spaces because they enhance the ambience of his project. For example, the law requires a residential building to have only one parking place for a certain number of flats. However, almost all prospective buyers in a metropolitan city would own cars, so the developer provides more than what the law requires. He offloads the enhanced cost on his clients, definitely charging them for more than they are getting.
Sunder Khatri, a Delhi-based lawyer dealing in property-related cases says, “In many cases, the basement is also charged, which does not count while calculating the floor to area ratio (FAR). Usually, the basement is meant for parking and storage. And as such the developer should give one free parking space. No authority uses words like super built-up area. So developers are misusing the terms. They are flouting the norms.”
He adds, “Common amenities is the right term to be used, and it is job of the town planner and various other departments to sanction the projects. In general, developers take a pre-approval and then later on add the amenities and other specification as per their need.”

Need for regulation
Parsvnath COO, B P Dhaka says, “We need a regulator who can set rules for sales and common spaces. Carpet area should be the norm for selling, as that is the living area. Why should one pay for the extra area and common spaces. And it is likely that anybody living in a metro in a Rs 35-40 lakh apartment will own a car. So there should be one car space per apartment in the housing. It is the developer’s responsibility.”
But developers say, the government asks them to provide all possible amenities including shops, hospitals, and schools while constructing projects of a certain scale (such as townships). These incur extra costs on them.

Somebody has to pay
In a way the developer is justified in offloading the cost of such facilities on his buyers. But the addition of such amenities adds value to the project. But as Puri of JLLM says, “There is no there satisfactory means of establishing to what extent he can offload the extra cost on his clients.”
Parry Singh, managing director, Red Fort Capital says, “World over people transact on the basis of carpet area. This is a good practice, as buyers have to pay for only the area they are living in. As per my knowledge, only one developer in Mumbai is selling on the basis of carpet area.”
As Parekh said in his letter, “Just about anyone today can become a developer or broker. Developers rarely offer any warranty for the flats and in case of disputes, consumers have only the consumer or civil courts as recourse—both of which may take ages before a case can even come up for hearing…. From the consumer’s perspective, a house is the single-largest investment a person makes in his or her lifetime. It is only fair that there is some effective mechanism that can take care of grievances and ensure basic consumer protection.”
That effective defence mechanism can be a real estate regulatory authority.

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