TRAINING PROJECT REPORT

STUDY OF INVESTORS BEHAVIOUR TOWARDS

REAL ESTATE IN PUNJAB

Commenced at MUKAT ENCLAVE PVT. LTD. (PATIALA)

in fulfillment of the requirements of the degree of

MASTER’S OF BUSINESS ADMINISTRATION

Session 2016-2017

SUBMITTED TO SUBMITTED BY
Dr. Apar singh Jagmeet Singh Brar
Assistant Professor Roll No. 152421249
MBA-3RD SEM.

School Of Management Stuides

Punjabi University, Patiala

1
 DECLARATI0N

I hereby declare that this titled as “Study of Investors Behaviour

Towards Real Estate in Punjab” is my original work under the guidance of Dr. Apar
singh, Asst. Professor, school of management studies, Punjabi university, Patiala towards the
partial fulfilment of the requirements for MBA course of Patiala University. This has not been
submitted earlier for award of any other degree by Punjabi University Patiala or any other
University.

DATE: Jagmeet Singh

PLACE:

2
 ACKNOWLEDGEMENT

It gives me tremendous pleasure in bringing out this project entitled “Study of

Investors Behaviour Towards Real Estate in Punjab” taken up during my
final year MBA degree course.I am thankful to Dr. Apar singh Asst. Professor, for granting me
permission for this work and the help extended to me during the course of this project. I express
my deep gratitude and indebtedness towards my guide Mr. Jaspal singh, Training Guide, Mukat
Enclave, Patiala for his valuable guidance and assistance through stimulating discussion during
the course of this project work.
Last but not the least I would like to thank my parents, friends and all other respondents for co-
operating with me in this work during my study and making this a successful one.

Name: Jagmeet Singh Brar

Roll No. 15421249

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 TABLE OF CONTENTS

S.NO. CONTENT PAGE NO.

Preface

1. CHAPTER 1: INTRODUCTION 6

2. CHAPTER 2: INDIAN REAL ESTATE SECTOR 10

3. CHAPTER 3: COMPANY PROFILE 15

4. CHAPTER 4: LITERARTURE REVIEW 21

5. CHAPTER 5: OBJECTIVES 23

6. CHAPTER 6: RESEARCH METHODOLOGY 25

7. CHAPTER 7: DATA ANALYSIS 29

8. CHAPTER 8: FINDINGS 47

9. CHAPTER 9: CONCLUSIONS & SUGGESTIONS 51

10. LIMITATIONS 54

APPENDIX

BIBLIOGRAPHY

4
 PREFACE

Without practical training theory is irrelevant. So along with the theory, practical
knowledge is provided to the management students to expose them to the actual working
environment of an organization, which is relevant to other organization as well.

It has been my privilege to prepare project on the “Study of Investors Behavior

towards Real Estate Investors” in Patiala which provides an ideal and congenial atmosphere
for learning real estate.

5
 CHAPTER -1
INTRODUCTION

6
CHAPTER 1: INTRODUCTION

Real estate or immovable property is a legal term (in some jurisdictions) that
encompasses land along with anything permanently affixed to the land, such as buildings. Real
estate (immovable property) is often considered synonymous with real property (also
sometimes called realty), in contrast with personal property (also sometimes called chattel or
personality). However, for technical purposes, some people prefer to distinguish real estate,
referring to the land and fixtures themselves, from real property, referring to ownership rights
over real estate.

Real estate is "property consisting of land and the buildings on it, along with its natural
resources such as crops, minerals, or water; immovable property of this nature; an interest vested
in this; (also) an item of real property; (more generally) buildings or housing in general. Also: the
business of real estate; the profession of buying, selling, or renting land, buildings or housing."

The terms real estate and real property are used primarily in common law, while civil law
jurisdictions refer instead to immovable property.

In law, the word real means relating to a thing (from Latin res/rei, thing), as distinguished from a
person. Thus the law broadly distinguishes between [real property] (land and anything affixed to
it) and [personal property] (everything else, e.g., clothing, furniture, money). The conceptual
difference was between immovable property, which would transfer title along with the land, and
movable property, which a person would retain title to. (The word is not derived from the notion
of land having historically been "royal" property. The word royal — and its Castilian cognate
real — come from the related Latin word rex-regis, meaning king.)

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1.1 BUSINESS SECTOR

With the development of private property ownership, real estate has become a major area of
business. Purchasing real estate requires a significant investment, and each parcel of land has
unique characteristics, so the real estate industry has evolved into several distinct fields.
Specialists are often called on to valuate real estate and facilitate transactions. Some kinds of real
estate businesses include:

 Appraisal - Professional valuation services

 Brokerages - Assisting buyers and sellers in transactions

 Development - Improving land for use by adding or replacing buildings

 Property management - Managing a property for its owner(s)

 Real Estate Marketing - Managing the sales side of the property business

 Relocation services - Relocating people or business to a different country

Within each field, a business may specialize in a particular type of real estate, such as residential,
commercial, or industrial property. In addition, almost all construction business effectively has a
connection to real estate.

"Internet Real Estate" is a term coined by the internet investment community relating to the
parallel that exists between high quality internet domain names and real-world, prime real estate.
Many internet companies actually use the address of properties as domain names.

1.2 LEVELS

According to The Economist, "developed economies'" assets at the end of 2002 was

 Residential property: $48 trillion

 Commercial property: $14 trillion

 Equities: $20 trillion

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  Government bonds: $20 trillion

 Corporate bonds: $13 trillion

 Total: $115 trillion

That makes real estate assets 54% and financial assets 46% of total stocks, bonds, and real estate
assets. Assets not counted here are bank deposits, insurance "reserve" assets, and human assets;
also it is not clear if all debt and equity investments are counted in the categories equities and
bonds. For US asset levels see FRB: Z.1 Release-- Flow of Funds Accounts of the United States.

1.3 MORTGAGES IN REAL ESTATE

In recent years, many economists have recognized that the lack of effective real estate laws can
be a significant barrier to investment in many developing countries. In most societies, rich or
poor, a significant fraction of the total wealth is in the form of land and buildings. In most
advanced economies, the main source of capital used by individuals and small companies to
purchase and improve land and buildings is mortgage loans --bank loans for which the real
property itself constitutes collateral. Banks are willing to make such loans at favorable rates in
large part because, if the borrower does not make payments, the lender can foreclose by filing a
court action that lets them take back the property and sell it to get their money back. But in many
developing countries there is no effective means by which a lender could foreclose, so the
mortgage loan industry, as such, either does not exist at all or is only available to members of
privileged social classes.

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 CHAPTER -2
INDIAN REAL
ESTATE SECTOR

10
CHAPTER 2: THE INDIAN REAL ESTATE SECTOR

Real estate in India continues to be a favoured destination globally for investors, developers and
non-resident Indians (NRIs), driven largely by investor-friendly government policies and
increasing globalisation. The second largest employment generation sector after agriculture, real
estate contributes about 6.3 per cent to India's gross domestic product (GDP). The foreign direct
investment (FDI) in the sector is expected to touch US$ 25 billion in the next 10 years from its
current US$ 4 billion.
The sector's progress is driven by factors such as rapid urbanisation, a growing trend towards
nuclear families, positive demographics, rural–urban migration, ever-developing infrastructure,
higher income levels and housing demand. The real estate sector, with its growing investment
opportunities, is expected to post annual revenues of US$ 180 billion by 2020.

Market Dynamics
The real estate sector in India is witnessing rapid growth in the residential, commercial and
industrial segments. Real estate development, once restricted to bigger cities, have shown
marked progress in smaller cities and towns owing to availability of banks loans, higher earnings
and improved standard of living.
The real estate sector of India is projected to post annual revenues of US$ 180 billion by 2020
against US$ 66.8 billion in 2010-11, a compound annual growth rate (CAGR) of 11.6 per cent.
The demand is expected to grow at a CAGR of 19 per cent in the period 2010-2014, with Tier I
metropolitan cities expected to account for about 40 per cent of this growth. As of now, Mumbai,
Delhi-National Capital Region (NCR) and Bengaluru cater for 46 per cent of total office space
demand in India. This demand is expected to be rise sharply in Tier II cities such as Kolkata and
Chennai in the period 2010-14.
Today, Delhi-NCR accounts for about 30 per cent of the total mall supply in India. About 53 per
cent of demand for total mall space is projected to come from the country's top seven cities,
namely Delhi-NCR, Bengaluru, Mumbai, Kolkata, Pune, Hyderabad, and Chennai, in the period
2010-2014.

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 Market size of real estate in India
The market size of real estate in India is expected to increase at a CAGR of 11.2 per cent during FY2008 – 2020.

Demand analysis of top 7 cities (‘000 units) 2010-14

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Investment Opportunities
The Indian retail realty sector is projected to grow at around 15 per cent year-on-year over the
next 3-5 years as against a 12-13 per cent nominal growth of India's GDP estimated by the
International Monetary Fund (IMF). If the sector does indeed manage the aforementioned
growth, it will touch Rs 34 trillion (US$ 544.73 billion) by 2016.
India's office space stock is estimated to rise by 40 per cent to 642.2 million sq ft by 2017,
according to a report by real estate consultancy Knight Frank India. The current Indian market
offers some of the most competitive rates in the Asia-Pacific region, according to a report by
property services firm DTZ. The report also states that Indian cities will have some of the fastest
rental growths in the region over the period 2013-17, but will remain among the most
competitive.
The share of luxury retail space in India will be 1.4 per cent by 2015, according to a report by
real estate services firm Cushman & Wakefield. NCR and Mumbai, areas that have embraced the
mall culture, are the two most favoured destinations for luxury retailers.
The construction development sector, including townships, housing and built-up infrastructure
garnered total FDI worth US$ 22,671.95 million in the period April 2000-August 2013.
Construction (infrastructure) activities during the period received FDI worth US$ 2,280.95
million, according to the Department of Industrial Policy and Promotion (DIPP).
The following are some of the major investments in the Indian real estate sector:
 Godrej Properties Ltd plans to invest Rs 9,000 crore (US$ 1.44 billion) in 15 new real
estate projects in India over the next 10 years.
 Unitech Ltd has signed a Rs 800 crore (US$ 128.17 million) deal to lease an 800,000 sq
ft space at one of its IT Special Economic Zones (SEZ) in Gurgaon, to multinational
human resource firm, Aon Hewitt.
 NRI billionaire Mr Ravi Pillai plans to purchase stake worth about US$ 100 in a special
purpose vehicle floated by Pune-based realtor, Panchshil Realty. The investment will go
into the construction of Trump Towers and World Trade Centre in Pune, Maharashtra.
 Infrastructure Leasing & Financial Services (IL&FS) Ltd has claimed a project worth Rs
244.46 crore (US$ 39.17 million) from realty firm Emaar MGF for construction work at
the latter's residential project at Gurgaon, Haryana.
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  French luxury hotel chain Sofitel, which is managed by Accor Group, is targeting 10
properties in India, mainly in major luxury destinations, in the next few years.
 One of the world's top manufacturers of elevators, US-based Otis, is setting its sights on
the Indian real estate market. The pace of construction in India makes the country an
attractive proposition for such an investment. The company will be working with the
Delhi and Hyderabad Metro projects. The former has placed an order for 222 escalators
for its Phase III project, according to Otis.

Government Initiatives
According to the existing FDI policy, 100 per cent FDI in the construction development sector is
permitted through the automatic route. DIPP is looking at relaxing FDI norms further to
encourage investment. It has also proposed a reduction in the minimum capitalisation for wholly-
owned subsidiaries from US$ 10 million to US$ 5 million, and from US$ 5 million to US$ 2.5
million for joint ventures with Indian partners.
One of the major initiatives of the Ministry of Housing and Urban Poverty Alleviation (MHUPA)
is to provide affordable housing for poor people living in urban areas. The Jawaharlal Nehru
National Urban Renewal Mission (JNNURM) is one its flagship schemes, a reform driven
investment programme which started with the objective of creating economically productive,
efficient, responsive and inclusive cities.
The Real Estate (Regulation and Development) Bill, 2013, as approved by the Union Cabinet is a
pioneering initiative aimed at delivering a uniform regulatory environment to protect the
consumer, help in quick verdicts of disputes and ensure systematic growth of the sector.

Road Ahead
India needs to invest US$ 1.2 trillion over next 20 years to modernise urban infrastructure and
keep pace with the burgeoning urbanisation, as per a report (India's urban awakening) released
by McKinsey Global Institute (MGI).
Demand for space from sectors such as education and healthcare has opened up opportunities in
the real estate sector. Also, growth in the number of tourists has led to demand for service
apartments. This demand in the tourism sector is expected to generate 50,000 new hotel rooms
over the next four to five years, across India's major cities.
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CHAPTER -3
COMPANY

PROFILE

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CHAPTER 4: MUKAT ENCLAVE PVT. LTD., PATIALA

4.1 INTRODUCTION

They are an independent infrastructure provider

with committed customer base. Backed by a
group of dynamic investors from India and
Europe, Mukat Enclave Pvt. Ltd.s is one of
India’s most well capitalized real estate
company. Strong financial support and
engineering expertise makes us a quality
infrastructure provider with global presence.
The group is known in the Realty fraternity for
its professional might.

Implementation of new technology and innovation has been its constant goal and this is evident
in all its projects.

All these practices, policies, heritage, success and reputation are carried ahead by Mukat Enclave
Pvt. Ltd.s ltd.

The Indian real estate sector is growing at a breathtaking pace. Outsourcing, the new phenomena
increased the demand for commercial buildings and urban housing besides related improvement
in infrastructure. The stand taken by the government for FDI policies has given a rise for the
investments in the realty sector. Mukat Enclave Pvt. Ltd.s is willing to embrace all the positive
aspects of growth to cater to the changing trends.

With its experienced and professional team, EIL will carve a niche out of niche in the real estate
industry by changing the skyline of the developing cities in India.

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4.2 EIL’S TEAM

The company's ability is to meet the special requirements of the real estate market and clients
demand from its strong foundations of professionalism. The group's strength lies in its panel of
dynamic, young, qualified and highly experienced management and dedicated marketing
professionals that take care of the entire activities keeping its main thrust on customer
satisfaction, which is the main motto of the company.

The structured & unified marketing model followed in EIL has helped in building a strong
network of channel partners both in residential & commercial segment.

EIL also has a dedicated customer care centre that comprises of experienced executives. A vast
database of customers is maintained and customers can call them up for inquiries, complaints &
feedback. Periodic training and on-site experience ensure that their staff is always geared
towards meeting the demands of the industry.

4.3 FOUNDATION

Vision

To be the most innovative and trusted brand in real estate industry by adopting new technologies
with a focus on green and eco-friendly construction with focus to fulfill the expectations of the
customers.

Mission

ONE FACE, ONE VOICE

There will be one face, one voice of Earth for the outer world.

CUSTOMER CENTRIC ATTITUDE

To ensure complaint free operations with total customer satisfaction by resolving customer’s
issues with utmost attention and speedy services round the clock

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BRAND VALUE

To deliver the projects ‘differently’ and make the customer to feel at ease and comfort and create
the ‘Brand’ a most trusted brand.

INNOVATION THROUGH TECHNOLOGY

Earth would be effortful and creative to identify and deliver something new, matching the
technological up gradation in the Realty sector, all around the globe.

CORPORATE SOCIAL RESPONSIBILITY

Earth would concentrate towards development of affordable houses for the masses, to reach to
the heart of all.

EMPLOYEE CULTURE

To keep on constantly searching for the talented employees, developing employee retention
policies, providing continuous training and development to facilitate them to contribute
completely in the growth of the organization

CHARACTER, ETHICS AND VALUES

Earth would be governed by its professional policies and procedures to ultimately benefit its
values customers. The transparency of the policies would be maintained through the company’s
operational manual. Adhering to the manual would be mandatory for all, with tan ultimatum
objective to make the earth “Favorite of all’ and to create “Ethical Brand Value” within a short
span.

4.4 THEIR CORPORATE IDENTITY

The Earth Logo is an epitome of ancient history & modern architecture. The logo is a remarkable
union of the pyramid & the sphere.

The pyramid dates back to early civilizations & for thousands of years, the largest structures on
earth were pyramids. In architecture pyramids are considered as a monumental structure and are

18
looked upon with reverence & awe. The pyramids have set the foundation for many future
constructions.

The use of pyramid therefore makes a lot of sense for a company that deals in real estate. The
circumference of a sphere reinstates the values of Mukat Enclave Pvt. Ltd.s, as the earth is in
itself is a sphere. It renders a 3D feel to the logo. The presence of both the pyramid & sphere,
highlight the truth that Mukat Enclave Pvt. Ltd.s was born to create outstanding structures, that’ll
leave a deep imprint on future.

Also the latitudinal feel to the logo imbues a direction of growth. The logo symbolizes global
appeal, upward growth & progress. As like on planet earth latitudes, always spiral up and the
same outlook is hoped for the group too.

4.5 CODE OF CONDUCT

Objective: Every action of the company & its employees is to provide 360 degree customer
solution at its door step. They ensure to provide full support for any compliance of the customers
or the stakeholders.

They are committed to continuously review and update their Policies and Procedures to initiate
policies and actions which are customer centric and which promote financial prudence.

Philosophy & Applicability of the Code - The Company expects, the Management to exercise
good judgment to ensure the interest, safety and welfare of customers, employees and other
stakeholders and to maintain a cooperative, efficient, positive, harmonious and productive work
environment in the organization. The Code needs to be followed while working in the premises
of the company, at offsite locations where the business is being conducted whether in India or
abroad, at company sponsored business and social events or at any other place where they act as
representatives of the company.

Employment/Outside Assignment – Members of Management are prohibited from engaging in

19
any activity / employment that interferes with their performance or responsibilities to the
company or otherwise is in conflict with or prejudicial to the company. Business Interest – If any
member of Management considers investing in securities issued by the company’s customer,
supplier or competitor, they should ensure that these investments do not compromise their
responsibilities to the company.

Related Parties – As a general rule, the Management should avoid conducting company’s
business with a relative or any firm, Company, Association in which the relative is associated in
any significant role.

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CHAPTER -4
REVIEW OF
LITERATURE

21
CHAPTER 3: LITERATURE REVIEW

House (1977) suggests that high turnover in real estate sales can be attributed, in part, to the non-
routine, problematic, and irregular work hours involved. He argues that real estate agents must be
ready to see prospective clients at almost any time. This, coupled with the commission-based pay
structure, which makes income irregular and uncertain, leads to a low success rate for new
agents.

Wotruba (1991) contributes high early failure rates to the "sink or swim" philosophy followed by
most real estate firms. The marginal cost of providing desk space and secretarial service for a
new salesperson is low and so too is the time spent screening and training new agents. If the new
agent becomes successfully established, the company profits. If the agent fails, the firm can
easily and inexpensively hire a new recruit to replace him/her. Moore, Eckrich, and Carlson
(1986) suggest that early failure rates could be greatly decreased by implementing basic
screening procedures. They studied the skills and characteristics needed to be successful in sales
and produce a hierarchy of importance among 82 sales competencies.

Since failure rates are so high, why then do so many individuals seek to become real estate sales
agents? Barth (1964) explains that many new real estate sales people are primarily entrepreneurs
that are willing to work hard for a living, but lack formal education and financial capital, which
are necessary to be successful in other careers. Other explanations for real estate sales entry
include ease of entry, low screening procedures, and the independent nature of the work [House
(1977)].

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CHAPTER -5
OBJECTIVES

23
CHAPTER 5: OBJECTIVES

The objective of the study:

1. To study the real estate investment by the investors.

2. To study how age, income and investment affects the real estate investor.
3. To study the different reasons to sell and buy the property.
4. To study the commissions of the real estate agent and also the methods of
financing.
5. To study the stance regarding real estate acquisition and sale.
6. To study the awareness of real estate securities & monetization.

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 CHAPTER -6
RESEARCH

METHODOLOGY

25
CHAPTER 6: RESEARCH METHODOLOGY

Research refers to the organized method consisting of enunciating the problem

collecting facts, critically analyze of facts arriving at conclusion based on them.

Formulation of the problem is the first & vita) step in research John says that “It is a
familiar & significant saying that problem well put in is half solved.”

To find out what is the problem or problem which is a problematic situation present is to
be well along in inquiry. As such, at initial stages of the study an effort was made to
formulate the problem. In order to formulate a research problem in the right perspective,
a great deal of exploratory work is required.

RESERCH DESIGN

After research objectives the second stage of research calls for developing the most
efficient plan for gathering the needed information. Designing a research plan includes
decisions on data sources, research approaches, research instrument & sampling plan.

DATA COLLECTION

Collection of data regarding the problem under research is called data collection. Two
types of data can be used in research i.e. primary data & secondary data. I have used
primary data as well as well as secondary data for my project report.

PRIMARY DATA

The primary data is the data gathered for a specific purpose or specific research report. I
have collected primary data with help of questionnaires.

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SECONDARY DATA

The secondary data is the data, which already exists & was collected for some other
purpose. The secondary data I have used in my research report is basically collected from
the business magazines, journals & websites of promotion companies for real estate.

RESEARCH APPROACH

Primary data can be collected in four ways: Observation. Focus groups, Surveys &
Experiments. My approach to the research is survey based, as it is best suited to know
investors behavior towards real estate.

RESERARCH INSTRUMENT

The instrument used for carrying out the research is questionnaire as it is the most
economical, flexible & easy to understand device used for collection of data. Keeping in
view the research objectives, a questionnaire is prepared which is very easy to
understand. This questionnaire was tested to locate any discrepancy, in the pilot survey &
changes were made.

SAMPLING DESIGN

The first step in developing any sample design is to clearly define the set of objects, as
my study is exploratory, the sampling design includes three decisions i.e. sampling unit,
Sample size & Sampling procedure.

SAMPLING UNIT

In this research report the sampling unit includes the data collection of investor’s
behavior towards Mukat Enclave Pvt. Ltd..

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SAMPLING SIZE

The sample size of my research is 100; large samples give more reliable results that is
why I tried my best to cover more Real Estate (Investors) in Patiala.

Better place to fetch out the real estate investors are property dealers thereby I
contacted some of the property dealers and also met with real estate investors personally
for better results.

Sample Size — 100

Sample Unit –Real Estate Investors

Area of Survey — Patiala

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 CHAPTER -7
DATA ANALYSIS AND
INTERPRETATION

29
CHAPTER 7: DATA ANALYSIS

1. Age Group

Table 1:

20-30 11
30-40 23
40-50 31
50 Above 35

Graph 1:

Interpretation: 11% of the real estate investors are from the age group 20-30, 23% of the
real estate investors are from the age group 30-40, 31% of the real estate investors are
from the age group 40-50 and rest 35% of the real estate investors are from the age group
above 50.

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2. Income Group

Table 2:

10000-20000 14

20000-30000 21

30000-40000 29

36
40000 Above

Graph 2:

Interpretation: 14 % of the real estate investors having a income group 10000-20000, 21

% of the real estate investors having a income group 20000-30000, 29 % of the real estate
investors having a income group 30000-40000 and rest 36 % of the real estate investors
having a income group above 40000.

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3. You belong to the following category of the society?

Table 3:

Professional 31
Govt. Service 19
Businessman 50

Graph 3:

Interpretation: 31 % of the real estate investors are professional (Doctors, Engineers,

Teachers, Professors etc.), 19 % of the real estate investors are in government services
and the rest 50% of the real estate investors are businessman.

32
4. Your Educational Background

Table 4:

Matric 7

Higher Secondary 19

Graduate 41

Post Graduate 33

Graph 4:

Interpretation: 7% of the real estate investors are studies till matric, 19% of the real
estate investors are studies till higher secondary, 41% of the real estate investors are
graduates and rest 33% are post graduates.

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5. Which type of investment, you prefer most?

Table 5:

Real Estate 75

Share Market 72

Other Securities 69

Graph 5:

Interpretation: My aim is to target real estate investors thereby 75 investors declared

that they invest in real estate, 72 investors declared that they invest in share market too
and the rest 69 investors declared that they invest in other securities like mutual funds,
FD’s, Securities etc.

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6. Interest rate offered affects investor’s behavior in the real estate?

Table 6:

Strongly Agree 33
Agree 21
Neutral 14

Disagree 4

Strongly Disagree 3

Graph 6:

Interpretation: 33 of the real estate investors are strongly agreed affected due to interest
rates offered, 21 of the real estate investors are agreed that they affected due to interest
rates offered, 14 of the real estate investors are neutral that they affected due to interest
rates offered, 4 of the real estate investors are disagreed that they affected due to interest
rates offered and rest 3 of the real estate investors are strongly disagreed that they
affected due to interest rates offered.

35
7. Does some influential professionals affects your investment behavior?
Table 7:

Strongly Agree 19
Agree 14
Neutral 11

Disagree 23
Strongly Disagree 8

Graph 7:

Interpretation: 19 of the real estate investors are strongly agreed that there real estate
investments are influenced by influential professionals, 14 of the real estate investors are
agreed that there real estate investments are influenced by influential professionals, 11 of
the real estate investors are neutral that there real estate investments are influenced by
influential professionals, 23 of the real estate investors are disagreed that there real estate
investments are influenced by influential professionals and rest 8 of the real estate
investors are strongly disagreed that there real estate investments are influenced by
influential professionals.

36
8. Have you ever been advised which affects your investment in the real estate?

Table 8.1

Yes 52

No 23

Graph 8.1

Interpretation: 52 of the real estate investors are affected by the advice.

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If yes then to whom

Table 8.2

Friends 19

Relatives 11

Family Member 9

Any other 13

Graph 8.2

Interpretation: Out of 52 real estate investors who are affected by advice, 19 by their
friends, 11 by relatives, 9 by family members and the rest 13 by other persons like
property dealer, property analyst, company boss, etc.

38
9. Is economic conditions of country effects NRI investment in Punjab?

Table 9:

Yes 59

No 16

Graph 9:

Interpretation: Out of 75 respondents or real estate investors, 79% are in favour that
NRI investment effects the economic conditions of the country.

Devaluation of currency increased the value of dollar.

NRI can invest more.

39
Played role in satisfying the prices in Chandigarh, Mohali and Doaba (Jalandhar)

10. What is the term for investment in the real estate

Table 10:

Short Term 43

Long Term 32

Graph 10:

Interpretation: Most of the real estate investors like to invest for short term that is 57%,
but the ratio is on to the neck and not more specific.

40
11. Is affordable (10-20 Lacs) housing suitable for investors?

Table 11:

Yes 52

No 23

Graph 11:

Interpretation: 69% of the real estate investors are in favour that affordable housing are
suitable for investors as there rates fluctuate variably and solve the problem for housing
too.

41
12. Do you want to invest in

Table 12:

Housing 51

Agriculture 13

Commercial 33

Graph 12:

Interpretation: Out oif 75 real estate investors, 51 like to invest in housing, 13 in

agriculture and 33 in commercials.

42
13. Do you want to invest in

Table 13:

Independent Housing 31

Apartments 44

Graph 13:

Interpretation: Out of 75 real estate investors, 41% like to invest in independent housing
and 44 like to invest in apartments.

This ratio keep on change as if we survey in Patiala and nearby underdeveloped

areas, real estate companies failed to make an impact with making apartments as
investors like to go for independent housing, whereas in cities like Chandigarh, Ludhiana
and Mohali investors like to invest in apartments.

43
14. What is the stance regarding real estate acquisition
Table 14:

Increased Considerably 32
Increased to Certain Extent 42
Unchanged 39
Decreased to Certain Extent Sale 59
Decreased Considerably 39
Undecided 22

Graph 14:

Interpretation: According to the graph 32 of them says Increased Considerably, 42 of

them says Increased to Certain Extent, 39 of them says Unchanged, 59 of them says
Decreased to Certain Extent Sale, 39 of hem says Decreased Considerably and rest 22 of
them says Undecided.

44
15. What is the stance reg. real estate sale?

Table 15:

Increased Considerably 42
Increased to Certain Extent 39
Unchanged 31
Decreased to Certain Extent Sale 42
Decreased Considerably 61
Undecided 28

Graph 15:

Interpretation: According to the graph 42 of them says Increased Considerably, 39 of

them says Increased to Certain Extent, 31 of them says Unchanged, 42 of them says
Decreased to Certain Extent Sale, 61 of hem says Decreased Considerably and rest 28 of
them says Undecided.
45
16. What is the awareness of real estate securities & monetization?

Table 16:

Well aware based on implementation experience 33

No implementation, but aware of effectiveness 45
Have general knowledge, but unaware of
effectiveness 59
Minimal awareness 41

Graph 16:

Interpretation: According to the graph 33 of them says Well aware based on

implementation experience, 45 of them says No implementation, but aware of
effectiveness, 59 of them says Have general knowledge, but unaware of effectiveness, 41
of them says Minimal awareness

46
CHAPTER -8
FINDINGS

47
CHAPTER 8: FINDINGS

 11% of the real estate investors are from the age group 20-30, 23% of the real
estate investors are from the age group 30-40, 31% of the real estate investors are
from the age group 40-50 and rest 35% of the real estate investors are from the age
group above 50.

 14 % of the real estate investors having a income group 10000-20000, 21 % of the

real estate investors having a income group 20000-30000, 29 % of the real estate
investors having a income group 30000-40000 and rest 36 % of the real estate
investors having a income group above 40000.

 31 % of the real estate investors are professional (Doctors, Engineers, Teachers,

Professors etc.), 19 % of the real estate investors are in government services and
the rest 50% of the real estate investors are businessman.

 7% of the real estate investors are studies till matric, 19% of the real estate
investors are studies till higher secondary, 41% of the real estate investors are
graduates and rest 33% are post graduates.

 My aim is to target real estate investors thereby 75 investors declared that they
invest in real estate, 72 investors declared that they invest in share market too and
the rest 69 investors declared that they invest in other securities like mutual funds,
FD’s, Securities etc.

 33 of the real estate investors are strongly agreed affected due to interest rates
offered, 21 of the real estate investors are agreed that they affected due to interest
rates offered, 14 of the real estate investors are neutral that they affected due to
interest rates offered, 4 of the real estate investors are disagreed that they affected

48
 due to interest rates offered and rest 3 of the real estate investors are strongly
disagreed that they affected due to interest rates offered.

 19 of the real estate investors are strongly agreed that there real estate investments
are influenced by influential professionals, 14 of the real estate investors are
agreed that there real estate investments are influenced by influential
professionals, 11 of the real estate investors are neutral that there real estate
investments are influenced by influential professionals, 23 of the real estate
investors are disagreed that there real estate investments are influenced by
influential professionals and rest 8 of the real estate investors are strongly
disagreed that there real estate investments are influenced by influential
professionals.

 52 of the real estate investors are affected by the advice.

 Out of 52 real estate investors who are affected by advice, 19 by their friends, 11
by relatives, 9 by family members and the rest 13 by other persons like property
dealer, property analyst, company boss, etc.

 Out of 75 respondents or real estate investors, 79% are in favour that NRI
investment effects the economic conditions of the country.

 Devaluation of currency increased the value of dollar.

 NRI can invest more.

 Played role in satisfying the prices in Chandigarh, Mohali and Doaba (Jalandhar)

 Most of the real estate investors like to invest for short term that is 57%, but the
ratio is on to the neck and not more specific.

49
 69% of the real estate investors are in favour that affordable housing are suitable
for investors as there rates fluctuate variably and solve the problem for housing
too.

 Out oif 75 real estate investors, 51 like to invest in housing, 13 in agriculture and
33 in commercials.

 Out of 75 real estate investors, 41% like to invest in independent housing and 44
like to invest in apartments.

 This ratio keep on change as if we survey in Patiala and nearby underdeveloped

areas, real estate companies failed to make an impact with making apartments as
investors like to go for independent housing, whereas in cities like Chandigarh,
Ludhiana and Mohali.

 According to the graph 32 of them says Increased Considerably, 42 of them says

Increased to Certain Extent, 39 of them says Unchanged, 59 of them says
Decreased to Certain Extent Sale, 39 of hem says Decreased Considerably and rest
22 of them says Undecided.
 According to the graph 42 of them says Increased Considerably, 39 of them says
Increased to Certain Extent, 31 of them says Unchanged, 42 of them says
Decreased to Certain Extent Sale, 61 of hem says Decreased Considerably and rest
28 of them says Undecided.
 According to the graph 33 of them says Well aware based on implementation
experience, 45 of them says No implementation, but aware of effectiveness, 59 of
them says Have general knowledge, but unaware of effectiveness, 41 of them says
Minimal awareness

50
 CHAPTER -9
CONCLUSION &
SUGGESTIONS

51
9.1 CONCLUSION

 Most of the real estate investors are businessman and professionals and are well
educated and invest in real estate.

 Most of the real estate investors are greatly affected by the increase in interest rate
and now the rates again been slashed, real estate investors are again trying to
invest and not really by any influential professional.

 Real estate investors are affected by advice of friends, relatives, family members
and the other persons like property dealer, property analyst, company boss, etc.

 According to the real estate investors they search for Better Investment and expect
to rise in real estate in near future and believe in seller financing.
 Most of the real estate investors in favour that NRI investment effects the
economic conditions of the country. Devaluation of currency increased the value
of dollar. NRI can invest more. Played role in satisfying the prices in Chandigarh,
Mohali and Doaba (Jalandhar)

 Most of the real estate investors like to invest for short term, but the ratio is on to
the neck and not more specific.

 Most of the real estate investors are in favour that affordable housing are suitable
for investors as there rates fluctuate variably and solve the problem for housing
too.

 As we are survying in cities thereby the ratio of investing in real estate eye on
housing and commercials rather than agriculture. Many of the real estate investors,
like to invest in independent housing and also in apartments. This ratio keep on
change as if we survey in Patiala and nearby underdeveloped areas, real estate
companies failed to make an impact with making apartments as investors like to

52
 go for independent housing, whereas in cities like Chandigarh, Ludhiana and
Mohali investors like to invest for apartments.

 According to the real estate investors the rates of the real estate changes
unexpectedly and also considerably.
 Real estate investors are mostly unaware of the effectiveness of the increase of
rates of real estate.

9.2 SUGGESTIONS

 One should check and judge the market of real estate before investing for housing
or commercials

 Must take advise of an influential professional and also consider the advice of
friends, relatives, family members and the other persons like property dealer,
property analyst, company boss, etc.

 NRI investment shouldn’t have to ignore as it benefit the market

 Affordable housing are suitable for investors as there rates fluctuate variably and
solve the problem for housing too.

 One should have to invest in independent housing in underdeveloped cities like

Patiala and nearby place and in Apartments in developed cities like Chandigarh,
Mohali and Patiala

 Real estate changes unexpectedly and also considerably so try not to invest whole
of the money on single venture but try to made it diversify. Real estate investors
are mostly unaware of the effectiveness of the increase of rates of real estate.

53
LIMITATIONS

54
 LIMITATIONS OF THE STUDY

 The present study is based on primary data hence, the possibility of personal bias
cannot be ruled out.

 The sample size has been small. Perhaps a large one could have brought more
accurate results.

 Project needs identified herein are the broad areas for behavioural towards real estate.
Specific behavioural aspects and technical aspects of project might have remained
lopsided.

 Due to individual differences and varying work culture, the generalization practice
perhaps may need modification in bring out the desired results.

55
APPENDIX

56
APPENDIX: QUESTIONNAIRE

1. Age Group

A) 20-30 B) 30-40 C) 40-50 D) 40 Above

2. Income Group

A) 10000-20000 B) 20000-30000 C) 30000-40000

D) 40000 Above

3. You belong to the following category of the society?

(a) Professional (c) Govt. Service (d) Businessman

4. Your Educational Background

(a) Matric (b) Higher Secondary (c) Graduate

(d) Post Graduate

5. Which type of investment, you prefer most?

a) Real Estate

b) Share Market

c) Other Securities

6. Interest rate offered affects the investors behavior in the real estate?

a) Strongly Agree b) Agree

c) Neutral d) Disagree

e) Strongly Disagree

57
7. Does some influential professionals affects your investment behavior?

a) Strongly Agree b) Agree

c) Neutral d) Disagree

e) Strongly Disagree

8. Have you ever been advised which affects your investment in the real estate?

(a) Yes (b) No

If yes then to whom 1. Friends

2. Relatives

3. Family Member

4. Any other

9. Is economic conditions of country effects NRI investment in Punjab?

a) Yes b) No

10. What is the term for investment in the real estate

a) Short Term

b) Long Term

11. Is affordable (10-20 Lacs) housing suitable for investors?

a) Yes b) No

12. Do you want to invest in

a) Housing b) Agriculture c) Commercial

58
13. Do you want to invest in

a) Independent Housing b) Apartments

14. What is the stance regarding real estate acquisition?

a) Increased considerably
b) Increased to certain extent
c) Unchanged
d) Decreased to certain extent sale
e) Decreased Considerably
f) Undecided
15. What is the stance regarding real estate sale?

g) Increased considerably
h) Increased to certain extent
i) Unchanged
j) Decreased to certain extent sale
k) Decreased Considerably
l) Undecided
16. What is the awareness of real estate securities & monetization?

a) Well aware based on implementation experience

b) No implementation, but aware of effectiveness
c) Have general knowledge, but unaware of effectiveness
d) Minimal awareness.

59
BIBLIOGRAPHY

60
BIBLIOGRAPHY

Books and Journals

 Burton G. Malkiel (2003). The Random Walk Guide to Investing: Ten Rules for
Financial Success, New York: W. W. Norton and Company, Inc. ISBN 0-393-05854-9.
 Robert J. Shiller (2005). Irrational Exuberance, 2d ed. Princeton University
Press. ISBN 0-691-12335-7.

 John R. Talbott (2003). The Coming Crash in the Housing Market, New York:
McGraw-Hill, Inc. ISBN 0-07-142220-X.

 Andrew Tobias (2005). The Only Investment Guide You'll Ever Need (updated ed.),
Harcourt Brace and Company. ISBN 0-15-602963-4.

 Eric Tyson (2003). Personal Finance for Dummies, 4th ed., Foster City, CA: IDG
Books. ISBN 0-7645-2590-5.

 Benjamin Wallace-Wells, "There goes the neighborhood", Washington Monthly,

2004 April.

 Elizabeth Warren and Amelia Warren Tyagi (2003). The Two-Income Trap: Why
Middle Class Mothers and Fathers are Going Broke, New York: Basic Books. ISBN 0-
465-09082-6.

 Dean Baker, Financial Bubbles (Stocks and Housing) and How You Can Protect
Yourself Against Them, Center for Economic and Policy Research Economics Seminar
Series.

Websites

● http://en.wikipedia.org/wiki/Real_estate

61
● http://quarkvsindesign.com/articles/a1/news/2005/quark-city-under-cloud/
● http://www.ibef.org/artdispview.aspx?
in=60&art_id=20297&cat_id=381&page=3

62
 REAL ESTATE PROPERTY DEALERS - PATIALA
Sr. Name of The Firm Contact Person Contact no. Address
no.
1 Madhu Bansal Rajesh Bansal 9888000143 Leela Bhawan, Patiala
2 Pazzy.com Rishi Pal Singh 9876314309 23 No. Phatak, Patiala
3 Indica Investment Vikas Kalra 9815945474 Leela Bhawan, Patiala
4 Suneel Babbar
5 Golden bricks TS Arora/ Parveen 9876936000/ Feroz Gandhi Mkt. Ludhiana
8437029990
6 Khosla Investments Maj. SS Khosla 9815160780 Feroz Gandhi Mkt. Ludhiana
7 M/s. Sandeep Mr. Sandeep 9876500019 Sandeep Property Dealer, 96,
Kathuria Kathuria New Leela Bhawan, Patiala
8 Ashwani Property Mr. Ashwani 9814196447 Near Hemkunt Petrol Pump,
Advisor Kumar Sirhind road, Patiala
9 Sukhmani Property Mr. Wajinder 9814715746 Adj. Modern Sen. Sec.
Consultant Singh School, patiala
10 Alient Properties Mr. Ali Jafar Rizvi 9646946311 #53, Fateh Enclave, Phase -
II, Aviation street, Patiala
11 M/s. Nikhil Kapoor Mr. Nikhil Kapoor 9888411843, 143/6, Mohalla Inderpuri,
9417029178 Chandigarh road, Khanna
12 M/s Gurdeep Singh Mr. Gurdeep 7696600089 SCO-18, 1st floor, sher-e-
Singh punjab mkt, Khanna
13 Gupta Property Mr. R.K. Gupta 9316203422 SCO-73, chhoti Baradari,
Consultant opp. Narayan Continental,
Patiala
14 M/s Gulshan Mr. Gulshan 9216969011 #1661, Modl Chand street,
Sharma Sharma near Arya Smaj Chowk,
patiala
15 M/s Ganpat Rai Mr. Raman Kansal 9779591397 42, Preet Nagar, The Lower
Kansal Das Mall, Patiala
16 M/s Pratibha Pratibha Kataria 9815317878 #3,Bharpur Garden, patiala
Kataria
17 M/s Simran singh Mr. Simran Singh 9988000700 523/2, Ghear Sodhian, Patiala
18 Monga Properties Mr. Kanwaljeet 9872888455 SCO-32, FARO 2 A, Gandhi
Singh Monga Mkt, Ludhiana
19 Terrain Estate & Mr. Amritpal 9888897409 SCO-51, 2nd floor, New
Vikas Pvt Ltd Singh Leela Bhawan, Patiala
20 Aastha Properties Mr. Pawan Kumar 9464771963 #34, Good Earth Colony,
Gupta Patiala
63
21 Space & Design Ar. Sanjeev Verma 9814953976 New Leela Bhawan, Patiala
22 Y.P. Singh & Co. Mr. Harcharanjit 9780018019 Leela Bhawan Chowk, Ptiala
Singh
23 Rohin Vohra & CA Rohin Vohra 9814104595 Arna Barna Chowk, Patiala
Associates
24 J.P. Group of Mr. Malkit Singh 9814843228 Opp. Punjabi Uni., Patiala
Properties
25 Raj Properties Mr. Rajwinder 9814818655 Patiala-Rajpura road,
Singh Bahadurgarh
26 Sidhu Properties Mr. N.S. Sidhu 9814196218 Rajpura Road, Patiala
27 R.K. Properties Mr. Tejinder K. 9888988736 Rajpura Road, Patiala
Nagpal
28 Navdeep Estates Mr. Navdeep 9814085519 Phase-2, Urban Estate,
Singh Patiala
29 Sara Township & Mr. Satish Goyal 9814205032 Sirhind Road, Patiala
Dev. (P), Ltd.
30 Taj Real Estate Mr. Prem Kumar 9872138181 Sirhind Road, Patiala
Garg
31 Taj Real Estate Mr. Pardeep 9815459240 Sirhind Road,
Kansal Patiala/Madhya Marg,
Chandigarh
32 Global Enterprises Mr. Ramesh 9888840185 Sirhind Road, Patiala
Singla
33 J.P. Realtors Mr. Jaswinder 9814691747 Sirhind Road, Patiala
Singh
34 Sunrise Properties Mr. Surinder 9814648513 Sirhind Road, Patiala
Singh
35 Kunal Real Estates Mr. Kunal Garg 9464531841 Sirhind Road, Patiala
36 Kissan Property Mr. Balbir Singh 9780383851 Sirhind Road, Patiala
Advisor
37 Rai Property Mr. Jagdish Rai 9814730098 Sirhind Road, Patiala
Consultant
38 Jindal Son's 9872205721 Sirhind Road, Patiala
39 RMP Properties Mr. Rajeev 9814905472 Sirhind Road, Patiala
Aggarwal
40 M/s Bansal Property Mr. K.K.Bansal 9814830699 Sirhind Road, Patiala
Advisors
41 Assetholdings Mr. Rajan Goyal 9888437599 Sirhind Road, Patiala
42 Sukhwash Real Mr. Gurdeep 9781430003 Sirhind Road, Baran
Estate Singh
64
43 Beant Property Supdt. Beant 9914950448 Sirhind Road, Patiala
Advisors Singh
44 Thind Property Mr. Kesar Singh 9463546361 Sirhind Road, Patiala
Advisor
45 HS Real Estate 9888362517 Sirhind Road, Patiala
46 R.S.Property Mr. Raj Chhabra 9888020272 Sirhind Road, Patiala
47 CA Mr. Ajay Singh 9888016235 Nr. Red Cross Bhawan,
Rajbaha Road, Patiala

65