Leveraging the IPL's Impact on Real Estate Markets in India: Developers and Builders
Understanding IPL's impact on Real Estate in India
The Indian Premier League (IPL) has revolutionized cricket in India, and its influence extends far beyond the cricket field. The 18th edition of IPL is set to begin and we are all set to watch King Kohli battle it out for the number nobody else can own. The IPL significantly impacts various sectors, with real estate being a prime example. This blog post explores how IPL affects real estate markets in India and emphasizes the importance of market research for developers, leveraging property transaction data from sources like Encumbrance Certificates, sale deeds, gift deeds, mortgage documents, and other conveyance deeds.
Summary
- Increased Property Values: The areas surrounding cricket stadiums and fan zones often experience a surge in property values. The increased commercial activity, infrastructure development, and overall vibrancy of these areas make them attractive to homebuyers and investors.
- Demand for Commercial Real Estate: IPL stimulates the demand for commercial properties such as hotels, restaurants, retail outlets, and entertainment venues. The influx of tourists and the vibrant atmosphere during the IPL season create a favorable environment for businesses to thrive.
- Infrastructure Development: Host cities often undertake significant infrastructure upgrades to accommodate the large number of spectators during IPL matches. These improvements, including better roads, transportation networks, and enhanced public amenities, have a lasting positive impact on the overall real estate value of the area.
- Residential Real Estate Trends: IPL has also influenced residential real estate trends, with the emergence of cricket-themed residential projects and sports townships. These projects cater to the passion for cricket by incorporating cricket grounds and other sports facilities within the residential communities.
Catalyst for Commercial Real Estate
Surge in Demand for Restaurants, Bars, and Entertainment Venues
- IPL’s excitement boosts demand for dining and socializing spots in host cities.
- Fans, whether attending matches or enjoying the atmosphere, flock to restaurants, bars, and entertainment venues before and after games.
- Many establishments offer live match broadcasts, cricket-themed menus, and promotional offers to attract crowds.
- This surge in foot traffic leads to higher revenue for businesses and energizes entertainment districts.
- The increased activity can make commercial properties more appealing to potential investors.
Attracting Foreign Investment and Fostering Infrastructure Development
- The IPL’s global profile attracts foreign investment, with international brands and investors seeking sponsorship and advertising opportunities.
- This influx of foreign capital benefits IPL stakeholders and positively impacts the broader Indian economy.
- Hosting IPL events requires infrastructure improvements, including new or renovated cricket stadiums, transportation upgrades, and better amenities.
- These developments not only serve IPL needs but also contribute to long-term urban growth and enhance the real estate sector.
Residential Real Estate Trends in the Age of IPL
Urban Regeneration and Improved Connectivity
- Construction of cricket stadiums and infrastructure can spur urban regeneration, revitalizing underdeveloped areas.
- Hospitality infrastructure near stadiums is often integrated into broader urban renewal projects.
- Infrastructure improvements, such as better roads and public transport, enhance area livability and appeal to residents and investors.
- Increased real estate demand and property prices are driven by these developments, turning previously neglected areas into vibrant, well-connected locations.
Importance of Infrastructure for Residents and Investors
- Well-developed infrastructure and efficient connectivity, often linked to cricket developments, play a crucial role in real estate decisions.
- Proximity to sports facilities with good infrastructure offers lifestyle advantages for families, boosting residential realty growth.
- Major cricket stadiums, like the Arun Jaitley Stadium, have driven positive growth in real estate for both investment and rental purposes.
- Infrastructure improvements tied to cricket events are essential in stimulating real estate activity and growth in host cities.
The Importance of Market Research for Indian Developers
To capitalize on the opportunities presented by IPL's influence on real estate, Indian developers must focus on data-driven market research. By analyzing property transaction data from documents such as Encumbrance Certificates, sale deeds, gift deeds, mortgage documents, and other conveyance deeds, developers can gain valuable insights into:
- Identifying High-Potential Areas: Analyzing property transaction data can help developers identify areas with increasing property values and demand, particularly around cricket stadiums and upcoming infrastructure projects.
- Understanding Consumer Preferences: Market research can reveal the preferences of homebuyers and investors, such as the demand for cricket-themed amenities or the importance of proximity to sports facilities.
- Assessing Market Trends: By tracking property registrations and housing price indices, developers can gain insights into market trends and make informed decisions about project development and investment.
- Mitigating Risks: Thorough market research can help developers assess potential risks, such as oversupply or fluctuating demand, and make informed decisions to mitigate these risks.
Exploring Big Data and Analytics
- The real estate sector in India is increasingly leveraging big data and analytics for a competitive edge.
- Developers and investors use these tools to analyze market trends, property valuations, and customer preferences.
- In the IPL context, big data can track property market impacts from sporting events by analyzing property searches, social media sentiment, and transaction data in host cities.
- This data-driven approach helps identify areas or property types experiencing demand or price fluctuations related to IPL events, guiding more informed investment decisions.
Some interesting data for you to check around IPL's real estate contribution:
- As of now, India has 14 stadiums that have hosted Indian Premier League (IPL) matches across 12 cities
- Estimated revenue per IPL match at a stadium: ₹3–5 crore (from ticket sales, sponsorships, and hospitality).
- Hotel and Tourism Impact: IPL attracts thousands of domestic and international tourists, benefiting local hotels, restaurants, and transport services.Estimated boost per city:
- ₹10–15 crore in tourism revenue per match in major cities.
- Mumbai, Delhi, and Chennai see higher spending due to large fan bases.
Step by Step guide for real estate market research
- Identifying potential land surveys: Significant amount of land ownership data is lying in documents such as Sale Deeds, Mortgage Deeds and 7/12 extracts and Indexes.
- Property developers and agents can use this information for researching the target property.
- Let’s see how we can use India’s best property search engine to find out how India’s cricket mecca Wankhede’s neighbourhood looks like.
- Select Maharashtra > Go to Search Property through instant search
- You can pinch or zoom to select the map location or search
Search by Property
- As you can see on the image below, we have found the requisite details in the search results which helps us access the documents further which can have the ownership details in the property card.
Click to get your Property Card now
- Title Diligence: Doing title due diligence before any kind of investments in a real estate is extremely important. Title defines the ownership of the property as evidence of free title/ ownership which certifies that the title of the property and chain is clear and that the property is free from all sorts of:
- encumbrances such as mortgage, liens, bank loans;
- Municipal (pending bills) and planning/ development or zoning conflicts
- Pending litigations in the nature of title suit or money suit;
- Succession Issues;
- Encroachments
Sample Due Diligence format
For a quick consultation with our legal experts for any title diligence, do reach out to us through the Landeed app and website.
- RERA Compliance: Since its inception RERA law and authorities across various states in India have been regulating how residential development works. Therefore, any developer prior to building any housing complex that has more than 8 units or 500 sq mts must seek RERA authority approval prior to commencement of the projects.
Conclusion
So don’t be surprised if you see properties growing around Chepauk just to hear the chant of Thala Dhoni next time. The Indian Premier League has a profound impact on the real estate sector in India, creating opportunities for developers to capitalize on increased property values, demand for commercial real estate, infrastructure development, and evolving residential trends. By focusing on data-driven market research and leveraging property transaction data, Indian developers can make informed decisions, mitigate risks, and create successful real estate projects that align with the dynamic landscape shaped by IPL.
