Ludhiana real estate and property market review |

Ludhiana, India, March 18, 2007 - Ludhiana, known for its hosiery and sports goods industries, is the most populated city of Punjab. Excellent connectivity with major cities and a favourable business environment has made the city a preferred investment destination of the state. Though Ludhiana has witnessed considerable real estate growth in the past few years, most of the developments have been unplanned and have resulted in extending the city boundaries according to leading global property consultancy firm Knight Frank.

The major commercial activities in Ludhiana were previously confined to Chaura Bazaar, Sarafan Bazaar, Lakkar Bazaar, Purana Bazaar and Book Bazaar, which were item specific markets. Residential developments were predominantly located in proximity to these prime commercial pockets. Over the years, these locations have grown at a much faster pace than the respective growth in infrastructure.

Current Scenario
According to Knight Frank Research, with the announcement of mega projects and liberal government policies, Ludhiana has attracted the attention of a number of real estate investors. Of late, new locations like Mall Road, Link Road, Ghumar Mandi, Feroze Gandhi Market, Sarabha Nagar Market and Ferozepur Road have emerged as alternative markets to the commercial centre of Chaura Bazaar. Feroze Gandhi Market, located to the west of the city, comprises mostly of mixed-use developments with retail component on the ground floor and office space on the floors above. There is considerable demand for quality office space in this micromarket.

An interesting trend witnessed in the city has been the conversion of existing residential properties in the central part of the city for commercial usage. Notably, over a period of time, a number of residential developments in Pakhowal Road have been converted to retail and office spaces. Pakhowal Road will also have the prestigious office-cum-retail project, City Centre (4 mn.sq.ft.), which is expected to become the preferred office address for various firms.

Besides the above locations, Chandigarh Road will also witness commercial projects following the workplace principle. The demand will be primarily led by the companies from the banking and financial sector, telecom companies and other service sector corporates. At present, preference for stand-alone buildings is gradually catching up in the city. In the long term, with the development of the international airport at Halwara, commercial developments are expected to come up on Jalandhar Road as well.

The city has an active residential market. Sarabha Nagar, in the western part of the city has high-end residential development. This location is an attractive retail market as well. Gurdev Nagar, BRS Nagar, Kitchlu Nagar, Civil Lines and Club Road are the other residential locations offering quality residential options. Residential developments in the city are also coming up in peripheral locations of South City and Samrali Farms on both the sides of the canal. This includes an NRI township named 'Apna Punjab'.

Chandigarh Road has become the preferred destination for integrated townships and mixed-use projects reports Knight Frank. Preference for plotted development rather than apartments is a distinguishing feature of the residential market in Ludhiana.

At present, the city is witnessing the development of around 11 malls in different locations which are slated to be operational in the next 2-3 years. Most of these projects are coming up on Ferozepur Road and GT Road. Currently, Ferozepur Road has a number of organised retail developments, like Vishal Mega Mart, Ansal Plaza and Centrestage Mall. Large format retail projects like Westend Mall (471,000 sq.ft.) are also underway in Ferozepur Road. National level developers like Aerens and Omaxe have made a presence in the city with their projects - Festival City (500,000 sq.ft.) and Gold & Wedding Souk (2 mn.sq.ft.) respectively.

Rental and Capital Values
At present, Ludhiana market does not have any differentiation between office and retail space and both are predominantly offered for sale rather than on lease. However, new malls under development in the outskirts of the city are expected to usher in rental structure to the city's retail real estate market. In locations like Feroze Gandhi market, capital values for commercial properties are in the range of Rs.3,500-4,500/sq.ft. and rentals are about Rs.60-75/sq.ft. per month.

Organised retail formats at Jalandhar Road have rental values of Rs.105/sq.ft. per month and capital values of Rs.3,200/sq.ft. The quoted rentals in Sarabha Nagar Market are between Rs.80-90/sq.ft. per month. Mall developments in Ferozepur Road and Mall Road have rental values in a range of Rs.75-110/sq.ft. per month.

For the residential sector, capital values of high-end plotted developments in prime locations like Sarabha Nagar, Civil Lines and Gurdev Nagar are in range of Rs.2,200-3,300/sq.ft. Plotted residential properties are also available in Model Town Extension, Rajguru Nagar, Maya Nagar and Green Park in a range of Rs.1,660-2,200/sq.ft. On the other hand, apartment developments in the city have capital values of Rs.1,400-1,800/sq.ft.

Outlook
According to Knight Frank, arterial development together with improving infrastructure has facilitated growth of real estate market in Ludhiana. Entry of established players has induced competition thereby leading to quality real estate projects. Absorption rate for commercial space can be estimated to be high as significant demand for Grade-A buildings is envisaged in the near future. High disposable incomes will encourage new age retail business in the city. Thus, although Ludhiana real estate market is still at a nascent stage, the city has the potential to lead the charts in North India for investment options with higher gains, provided adequate infrastructure is created in time.

About Knight Frank
Knight Frank is a leading global property consultancy firm. Knight Frank Research provide strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, financial and corporate institutions. All recognise the need for the provision of expert independent advice customised to their specific needs.

LUDHIANA: India’s First Theme Destination Mall

Punjab’s first ice skating ring, gaming zone, bowling alley, video arcade and a Gyro drop. With so many firsts to its credit, the Aeren R Enterprises has unveiled Festival City, first theme destination mall of the state offering a truly international retail, entertainment and leisure experience for the entire family at an investment of Rs 250 crores.

Located in the prosperous industrial city of Ludhiana off the Delhi by-pass chowk on the Ludhiana-Jalandhar-Amritsar-G.T Road, Highway No 1, Festival City is easily accessible to the people of Ludhiana and affluent visitors from Phagwara, Jalandhar, Moga, Khanna, Amritsar, Chandigarh, Ambala and the surrounding areas. The structure is planned over 2.0 million square feet of covered area as an integrated commercial development. At the heart of the structure is a grand visually spectacular atrium that reinforces the impression of vast open spaces and imparts a feeling of grandiose and unmatched architectural scale. The activity area in the centre is ideally suited to host mega events like car launches and fashion shows.

The sheer size and scale positions Festival City as the ‘Big One’ among all shopping malls in Ludhiana, based on the principle of “Malls within a Mall” – the latest concept in shopping mall development. Specialty Malls like the Kids, Lifestyle, Fashion, Hospitality, Entertainment and Leisure Malls are an integral part of the development.

Meanwhile, IMAX (with seven-screen multiplex), Fun Cinemas, Shopper’s Stop, Hyper City, Home Stop, Pantaloons, E- Zone, Chun Mun Store, Kapsons, Provogue, Odyssey, Music World, The Home Store, Adidas, Archies, Bossini, Disney Jeans, FI, Kappa, Lee Cooper, Lilliput, Mufti, Nike, Numero Uno, Portland, Reebok, Shoe Tree, Sports Station, Titan, Woodlands have all signed up and over 50% of the leasing is already over.

The city of Ludhiana with the population of more than 35 Lacs, is the District Headquarters of Ludhiana. Ludhiana is located on the latitude 30.55° North and longitude 75.54° East in the state of Punjab in northern India. The city stands on the Grand Trunk Road from Delhi to Amritsar. Ludhiana is now Punjab's most populated and very rapidly growing metropolitan city. It is on the south bank of the Sutlej river. The city was the sight of a great battle during the first Sikh wars. It was also an important center during the struggle for freedom, and is associated with names like Lala Lajpat Rai, Sardar Kartar Singh, Baba Santa Singh and Maulana Habibur Rehman. An important industrial town, Ludhiana in Punjab, is Textile and light engineering centre of India. Woollen garment machine tools, dyes, cycle parts, mopeds, sewing machines and motor parts produced here are exported all over the world. Ludhiana accounts for 90% of the country's woollen hosiery industry.

Punjab's most populous metropolis, its hosiery goods are in demand in all the markets of the east and the west, which include America and Russia. For its production of hosiery, Ludhiana is also known as the Manchester of India. The worlds largest bicycle manufacturer, Hero Cycles, which produces nearly three million bicycles annually, is based here. The rich agricultural area around it supports a large grain market. Christian Medical College Hospital, established in 1895, was the first school of medicine in Asia. The world famous Punjab Agricultural University is on the edge of the town organizes the Kisan Mela every Year. It has an excellent museum. Ludhiana holds world records in food production. However, Ludhiana's claim to fame is not its commercial enterprises alone. It is an important pilgrimage center as there are many historic Gurdwaras. There are a number of gurudwaras associated with the life and visits of Guru Gobind Singh Ji. Among them the gurudwaras of Charan Kanwal and Manji Sahib are important.

History

From being a small village called Meer Hota in 1481 to later Lodiana and now Ludhiana, the city has never been caught napping. Under the Yodhas from the first to the fourth century, it later came under the rule of Samudragupta. But the Original Ludhianavis settled here much later in the ninth century. These were the Rajputs from south and then the Turks and the Afghans who took the Bet area of Sutlej on lease from Mohammad Gami. Later, the Sidhus, Gills, Sandhus and the Grewals came from the jungles of Jagraon and camped here.

Sikandar Lodhi sent Yusaf and Nihang to stop the approaching Baloachs. They crossed Sutlej and after defeating Khokhars of Doaba, established Sultanpur Lodhi. Nihang stayed back at village Meer Hota as Naib. He was the one who changed the name of the village to Lodiana. Later, his grandson, Jalal Khan, built the Lodhi Fort there. His two sons Aloo Khan and Khijar Khan divided among themselves the area around the fort but were dethroned by Babur who even demolished Nihang's tomb. That didn't end the travails of this town. During Akbar's reign, it was a tehsil along with Tihara.

Hathur, Bhundri, Machiwara, Payal and Doraha. Not many of us know that Guru Gobind Singhji traveled through Jharsahib, Machiwara, Kanech, Alamgir, Lama Jatpura and Lakha and finally at village Dina and wrote the famous Zafarnama in 1806. Maharaja Ranjit Singh also came to Ludhiana twice. On the pretext of solving the Patiala crisis, he won the area around Sahenewal and gifted 54 villages to Raja Bhag Singh of Jind. Diwan Mohkam Singh was made the ruler. The Brits too, traipsed along with Capt. Akhtar loni (1809-1815), an English political agent, followed by Capt. Maney and Sir Matton (1833-1838). After the death of Raja Sangat Singh, the Britishers captured 80 villages and Ludhiana came under Assistant Political Agent. During the First English-Sikh War, there were only 4,000 white soldiers. Ranjodh Singh Ladwa burnt this cantonment and looted the English at Baddowal. At Aliwal's War, however, Henry Smith defeated Ranjodh Singh.

The 1857 sepoy mutiny didn't amount to much as Deputy Commissioner Ricket successfully thwarted it with the help of Nawab of Malerkotla, Nabha patti. The Bet Muslims, however, revolted while urban Hindus and Sikhs remained pro government. In fact, fellow Ludhianvi Rai Kishan Chand Dhandari was the official advocate of the English at Lahore! Bassian Kothi was the biggest armour at that time and many secret agents lived in that area. Maharaja Dilip Singh was also kept for one night at Bassian Kothi. Kaonkey Kalan is another of the historical places in Ludhiana where antique coins were found along with bricks of 12inchX10inch size. It was also the main control area during the English Sikh War, while Chaoni Mohalla was an armament dump. English dug canals for irrigation and they helped their loyals to settle in bars that were vacated after the Partition. Maulana Shah Abdul Kadar led the Punjab mutiny. He was persuaded by blind Jaman Shah to settle here. It's here that he constructed a house and a masjid at Mouchpura now known as Masjid-do-Manjila. Jaman Shah would come here daily, bare-footed five times a day, to offer prayers. The Shah signed an agreement here in 1839 and the English crowned him king of Kabul. February 1921 saw Mahatma Gandhi at Daresi Ground in the city. At the end of the year, 3,000 freedom fighters from Ludhiana were arrested and sentenced to prison. Another 475 joined the Quit India Movement. Politically, Ludhiana has contributed five chief ministers, namely Bhim Sen Snahan, Justice Gurnam Singh, Gian Singh Rarewala, Lachaman Singh Gill and Beant Singh. The Goa War took 87 of its young soldiers.

Now, after partition of Punjab, its population has grown very fast and the small Cottage Industry also developed. The formation of new Punjab in 1966 made Ludhiana the central city of Punjab and so it became an attraction for everyone. Ludhiana is the central district of Punjab. It has its boundaries common with seven districts of Punjab. In the North, it has district Jalandhar and Nawan Shahar with river Sutlej forming the seperating line, in the North-East the district Ropar and Fatehgarh Sahib in the South-East. Ferozpur and Moga are in the West of Ludhiana. In the South Sangrur District. Ludhiana(East), Ludhiana(West), Jagraon, Khannna, Samrala, Payal and Raikot are the seven Tehsils (Sub-Divisions) of this District.

Culture

The Punjabi spirit of enterprise and business savvy is best exemplified by the city of Ludhiana. It is no exaggeration to say that in Ludhiana every household is a mini hosiery unit and everybody seems to be involved in some way or the other in this lucrative business. There are more than twenty colleges affiliated to Punjab University, Chandigarh. Literacy rate is very high in Ludhiana and is comparable to any well-literate corner of the country. The bhangra dance is common sight in the villages. Punjabi is the main language, while Hindi and English are also commonly used. In Ludhiana, Hindu festivals and celebrations such as Dussehra and Diwali are celebrated as enthusiastically as the birth and death anniversaries of the gurus and saints. The other festivals that are celebrated in Ludhiana are the Chhapar Festival & Baisakhi. To sikh community the festival of Baisakhi, celebrated in month of April, is of special significance because on this day in 1689 Guru Govind Singh organised the Sikhs into khalsa or `pure one'. In the countryside farmers start harvesting with great jubilation. Besides this all the festivals celebrated in Punjab are celebrated here with same enthusiasm.

In addition to this a number of fairs and rural sport Mela is held in ludhiana :

Killa Raipur

Killa Raipur, Twenty kilometers away from Ludhiana, is very famous for the Rural Olympics held there. People from different corners of Punjab come to observe the village youth demonstrate their sporting skills. The event is held in mid-February. The competitions are essentially of three types in the rural meets. Purely rural games are Kabaddi, Wrestling, and Weight lifting. The performing sports are Acrobatics, Twisting an Iron-rod by placing it on the Adam's apple, passing a tractor over the rib cage, cracking a big stone slab by place it on the chest. There are even more off beat feats, as seen where a young lad applied surma (kohl) on his eyes, with a knife held between his legs. And then there are the modern sports like Athletics, Hockey, Football, Volleyball, Handball, Cycling etc.

Kisan Mela

Punjab Agricultural University organizes a Kisan Mela in Ludhiana every year, where new techniques of farming are shown to the farmers. New hybrid quality seeds of food grains are displayed and sold.

Prof. Mohan Singh Mela

This is a cultural festival where artists, writers, poets and dancers from all over Punjab gather and perform. The aim of this festival is to promote Punjabi culture, language and literature.

Climate

Ludhiana has very hot summers and very cold winters. The monsoon visits this city around July and extends up to the beginning of September. Winters generally set in around November, when it becomes very cold during the night. If you can stand neither extreme heat nor cold, the best time to visit Ludhiana is from February to mid April. Thus, cotton clothing is apt for summers and woollens are required for winters.

Places of Interest

In Ludhiana

Punjab Agricultural University Museum

Maharaja Ranjit Singh War Museum

Christian Medical college

Around Ludhiana

Gurdwara Charan Kanwala at Machhiwara about 35 kms.

Gurdwara Alamgir 10 kms. from Ludhiana.

Gurdwara Nanaksar Sahib about 38 kms from Ludhiana.

'Hatur' About 54 kms. from Ludhiana sacred to Jains.

Doraha Sarai Doraha.

Archelogical site Museum, Sanghol.

Distance From
Delhi	315 kms
Ambala	96 kms
Jalandhar	57 kms
Amritsar	136 kms

How to Reach :-

Air : The nearest airport is in the state capital Chandigarh which is 100km away from Ludhiana.

Rail : Ludhiana railway station is well connected with New Delhi and all other important towns of India.

Road : Ludhiana is situated on the Amritsar-Delhi Grand Trunk Road. New Delhi, Amritsar, Chandigarh and other major cities in Punjab are well linked with Ludhiana through road.

Ludhiana at a Glance
Division	Patiala
State	Punjab
Area	3,744 Sq.kms
Head Quarter	Ludhiana
Provisional Population	3030352 (Census 2001)
STD Code	0161
Best Season	November To March
Tehsils	Jagraon, Khanna, Ludhiana East, Ludhiana West, Payal, Raikot, Samrala.
Sub Tehsils	Delhon, Kum Kalan, Machhiwara, Malaud, Mullanpur Dakha, Sidhwan Bet.
Development Blocks	Dehlon, Doraha, Jagraon, Khanna, Ludhiana-1, Ludhiana-2, Machhiwara, Pakhowal, Raikot, Samrala, Sidhwan Bet, Sudhar.
Municipal Corporation	Ludhiana
Municipal Council
Class-1	Jagraon, Khanna
Class-2	Doraha, Raikot, Samrala
Class-3	Payal
Nagar Panchayats	Machhiwara, Malaud, Mullanpur Dakha, Sahnewal
Parliamentry Constituency	Ludhiana
Vidhan Sabha Constituencies	Dakha, Jagraon, Khanna, Killa Raipur, KumKalan, Ludhiana East, Ludhiana North, Ludhiana Rural, Ludhiana West, Payal, Raikot, Samrala.

Facts & Figures

• Ludhiana, the Manchester of India, is the only Industrial city in northern India.



• Ludhiana is a District Headquarter with Parliamentry Constituency of the same name.



• It has four Vidhan Sabha Constituencies namely Ludhiana East, Ludhiana North, Ludhiana Rural & Ludhiana West, Two Development Blocks namely Ludhiana-I & Ludhiana-II.



• It is Headquarter of Two Tehsils namely Ludhiana East & Ludhiana West.



• It is one of the Four Municipal Corporations of the State.



• Ludhiana is Fastest growing city in India. Its Population according to provisional figures of 2001 Census was 3030352 besides very large migrant population - more than 5 lacs approx.



• In the country, Ludhiana has got the Highest per capita vehicles. Every 3 months around 10000 vehicles are added in the city.



• Though the Official Capital of Punjab is Chandigarh, the Business Capital of Punjab is Ludhiana.



• A Railway line and State Highway No. 18 connects it with Ferozepur which is at a distance of 124 kms. from Ludhiana. Other Railway lines from Ludhiana go to Lohian Khas via Nakodar, Jakhal via Dhuri.



• STD Code of Ludhiana is 0161 and Pin Code Starts from 141001.

Festival City to come up in 2 years

The Festival City project, claimed to be the biggest mall of Punjab by Aeren R Enterprises with an investment of over Rs 250 crore, will be functional by the end of 2008.

Mr Vivek Srivastava, vice-president(Marketing and Corporate Communications), said in an interview to Tribune News Service that the company would strive to offer a balanced composition of shopping, entertainment and leisure in its project, which was based on the principle of 'malls within a mall'.

"Over 50 per cent of the leasing is already over and names like IMAX, Fun Cinemas, Shopper's Stop, Pantaloons and various others have already signed up. The final tenant mix would be decided only by 2008 so that we are able to offer the latest brands," he said.

With Foreign Direct Investment (FDI) having been permitted, the company expected a wide range of new brands to start operations in India and said it was keen on roping in new ones. "Besides the basic theme, malls in the coming years would differentiate through a variety of brands they offer, which would benefit companies as well as consumers."

Aeren planned not to lease out or sell the entire space, but to retain some part of it so as to earn higher returns and also make the necessary changes if required.

Mr Srivastava said an exhaustive study by Hudema Consulting done for the company projected a stupendous rise in the annual income and retail potential and in retail expenditure, which was what made the company buoyant on success of its mall.

"Ludhiana is a prosperous city with immense potential.Besides, we also expect customers from surrounding cities like Jalandhar and Chandigarh."

When asked about nearly 20 malls coming up in this region within the next two-three years, he said the malls that had a right tenant mix and good facilities had very high chances of success as the prevailing environment did not offer a very comfortable and enjoyable shopping experience.

The Festival City, besides exclusive kids, fashion, hospitality and leisure zones, would have Punjab's first IMAX theatre with seven screen multiplex, an ice-skating ring and a gaming zone.

Mr Srivastava said the ambience in the mall would by in sync with its name and there would be different zones, each bearing design and architecture portraying Indian festivals like Divali, Dasehra, Holi and many others.