SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS

Diversification of Good living consultants Pvt. Ltd.

SUBMITTED BY: Pooja

MBA-IB (2010-2012) Enrolment No. : A1802010123

INDUSTRY GUIDE Satender chauhan Head of all departments

FACULTY GUIDE Ms. Kokil jain

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA

AMITY UNIVERSITY UTTAR PRADESH

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CERTIFICATE OF ORIGIN

This is to certify that Ms. Pooja, a student of Post Graduate Degree in MBA-IB, Amity International Business School, Noida has worked in the Good living consultants Pvt. Ltd., under the able guidance and supervision of Mr. Satender Chauhan, Head of all departments, Good living consultants Pvt. Ltd. The period for which he/ she was on training was for eight weeks, starting from 9th May to 9th July. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Signature (Faculty Guide)

Signature (Student)

ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr. Satender Chauhan, who is head of all departments of Good living consultants Pvt. Ltd., for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of Good living consultants Pvt. Ltd., for the constant support and help in the successful completion of my project.

Also, I am thankful to my faculty guide Ms. Kokil jain of my institute, for her continued guidance and invaluable encouragement. I would like to thank the entire team of industry interaction cell for giving me time to time valuable guidelines.

I extend my gratitude to almighty God for giving me such a opportunity and capability. I thank to my parents and all my friends.

Signature (Student)

Table of Contents
CHAPTERS 1. Executive summary 2. Research methodology 2.1 Objectives 2.2 Research design 2.3 Scope of the study 2.4 Research methodology 2.5 Factors and parameters
2.6 Research technique 2.7 Sampling technique 2.8 Limitations Summary of the chapter 3. Critical review of literature Summary of the chapter 4. Company profile SWOT analysis 5. Industry profile 6. Data 6.0 Data collection 6.1 Primary method 6.2secondary method 7. Data analysis 7.1 Analysis of dealer s data 7.2 Analysis of consumer feedback 8. Findings and analysis 9. Recommendation 10. Bibliography 11. Annexure 44-53 54-59 61 63 65

PAGE NO 6

8 8 8 8 9
10 11 12 13 15-24 25 26-27 28-30 32-40 41 41 41

Annexure 1 Annexure 1 12. Case study 13. Synopsis

67-69 70-72 73 -79 81-84

Chapter 1 Executive summary

1.1 Executive Summary

The main objective of the project is to study how can GOOD LIVINGS CONSULTANTS PVT. LTD., grow by diversifying itself. The Good living consultants Pvt. Ltd is a Growing real estate company which is diversifying itself towards interior designing and advertisements. This project is undertaken to analyze the real estate market so that company can decide its diversifying strategy. The report consists of the brief summary, findings, conclusion and recommendations. Apart from this it clearly mentions the objective of the study and the research methodology used i.e. both the primary as well as the secondary data. The another objective of this project is to study the buying behavior of the people while purchasing the property. The data collection method used is structured non disguised questionnaire in which the types of questions used are open ended, multiple choice and close ended. The various set of the questionnaires helped me to know the consumer buying behavior and also how a real estate firm can grow by diversifying itself. Besides this, the report consists of the finding that Delhi and NCR region is the major attraction for the real estate investors and has more scope to grow in terms of property market. The project helped me to know more about the realty sector and also about the current scenario of the property market in India. With the help of questionnaire I was able to carry out the detailed analysis of my project. The details of the methodology used by me for the accomplishment of the project is stated as below:y y y y y AREAS COVERED: - Delhi, Noida, Greater Noida, Ghaziabad and Gurgaon. RESEARCH DESIGN: - Descriptive. SOURCE OF INFORMATION: - Primary and Secondary Data. DATA COLLECTION METHOD: - Structured and non disguised questionnaire. SAMPLING METHOD: - Convenience sampling.

Chapter 2 Research methodology

2.1 Objectives
The broad objective of the project is to study the diversification of a real estate company to the interior designing. i) To study how a real estate company can grow by diversifying itself. ii) To study general buying behavior of customers while purchasing a property and perception of peoples about Delhi and cities of NCR.

Research is a growing need in any organization of the present world. It is helpful in identifying the consumer needs and wants so as to launch a product or to bring about improvements in the existing products. This is done to gain competitive edge over others. Success of the research depends upon the methodology adopted. The study was based on descriptive research.

2.2Research design
Statement of study
This study is on diversification strategy to grow and also on general buying behavior of customers while purchasing a property.

2.3 Scope of the study

It analyses the market potential of advertisements and interior designing. It also measures the responses of customers in terms of their buying behavior of customers while purchasing a property. It also analyses the overall market of real estate business.

2.4 Research methodology

y The research methodology deals with the 1. Research problem 2. Data collection 3. Research technique 4. Sampling methods
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5. Analysis and Interpretation of research work.

2.5 Factors and Parameters

The questionnaires as shown in annexure 1 and annexure 2 were prepared in order to get all the information needed by the company to diversify its business as well as to know the general buying behavior of the people and perception of the people about various cities while buying a property

In questionnaire designed to know general buying behavior of people and their perception about Delhi and cities of NCR parameters taken were

1. Location - This parameter includes all the location factors such as proximity to central business district, to schools, to hospitals, existence of huge shopping malls, etc.

2. Business Opportunities These parameters helps in analyzing the perception that people have about the job opportunities and business prospects available in different cities included in NCR.

3. Quality of Living This parameter helps in analyzing what people think about the style of living prevalent in the 5 cities included in NCR.

4. Law and Order This parameter helps in analyzing what people about the safety and security situation prevalent in the 5 cities chosen for the survey.

5. Infrastructural Development This parameter helps in analyzing how respondents rate 5 different cities chosen for the survey, on the basis of conditions of road and highways, availability of public transport, etc.

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External Factors
1. Price Range 2. Connectivity to Public transport 3. Proximity to workplace 4. Availability of loan 5. Easy Payment Plans 6. Rate of Interest 7. Resale Value 8. Clear title of property 9. Proximity to School 10. Proximity to Hospitals 11. Proximity to Entertainment Centers

2.6 Research Technique

Basically the techniques used for research can be broadly classified into two parts: y Qualitative techniques comprise of providing insights & understanding of problem setting. y Quantitative techniques seeks to quantify the data & typically applies some form of statistical analysis.

Also research can be divided as: o Descriptive o Causal

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The research design used here are: Descriptive research (quantitative research) The major objective of this research is to describe various market characteristics & consumer behaviour. It is conducted for following reasons: y y To estimate the percentage of units in a specified population exhibiting a certain behaviour. To determine the perception of product category. The instrument used for descriptive research was questionnaires & technique used was door to door survey.

2.7 Sampling Technique

Population: i) Property dealers and builders in Delhi and NCR region ii) Peoples living in Delhi and NCR region. Sample Size i) 213(For Property Dealers and Builders) Area Covered Deepali Peetampura Rohini Dwarika Kohat eclave ii) 70(For Customers) Area Covered Kalindi Apartments(Delhi)

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Anand Apartments(Ghaziabad) Sai Apartments(Noida) The Sampling Technique that is used in the project: y Convenience Sampling

Convenience Sampling:

o Convenience sampling attempts to obtain a sample of convenient elements. o It is a non probability sampling technique.

2.8 Limitations
 Study was restricted to some parts of Delhi and NCR region only.  Analyzing the perception of people about different cities of NCR was little difficult as some respondents didnt have much knowledge about the other cities in NCR.

 Denial of many Property Dealers and Builders to provide the information about the properties they deal in.

 The tendency of average rating of respondents.

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Summary of the chapter

This chapter explains the methodology which is used for the research. It provides an insight about the research design, sampling technique and data collection. Both qualitative and quantitative technique has been used for the accomplishment of the research objective.

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Chapter 3 Critical review of literature

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Article 1: Kang & Gardner (1989) analysed in their paper the relationship between different
factors taking a large sample of single-family homes. Disposable income came out to be the one of the crucial factor for growth of real estate sector

A housing stock shortfall of 19.8 million was experienced in 2005 which increased to 22 million in 2006, despite the strong efforts to ensure supply over the past one decade.

The dynamics that rule this segment are complex relationships existing between - Selling price, - Listing price, - Housing features, - Housing market conditions and - Marketing time in the residential real estate market.

Article 2: ASSOCHAMs report: reality check on real estates

The forecast of ASSOCHAMs Study on the Future of the Real Estate Investment in India was estimated to be about US $ 60 billion future market size of real estate business in India, the share of foreign investments will be within the range of US $25-28 billion for the year 2010 Source:, http://www.assocham.org/arb/real_estates_reality_check.php

Article 3 Real Estate Studies in India

Indian real estate companies have picked up really fast in the last few years. As per recent Indian Real Estate research, the average growth rate returns is 30%, which tells the tale of this booming industry. Latest Real estate research India has estimated a revenue increase to $102 billion from $14 billion in the next decade. As per real estate studies India, there has been an increase in the mass consumption, the trends are changing the consumption pattern of luxury goods and corporate houses with

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great purchasing power are also entering into the retail field of real estate. The RPG Spencer has the largest presence with Music World, Food World, Health & Glow in south India. Other major players such as Tatas, Birlas and Reliance are also following the same line, explaining the rapidly increasing shopping malls and other retail projects. The need for fun, entertainment and leisure has given rise to various Indian real estate sites like hotels and multiplexes. As per Real Estate Research India, the country has not only intellectual workforce, but also costeffective labour, the factor which has welcomed hundreds of telecomm, IT and ITES offices to build up in the country.

According to Real estate studies in India, the country is extremely experienced when it comes to raising and lending capital as compared to other countries. Foreign investors, brands and realtors have been attracted to invest in the country, keeping in mind its liberalization policies, free market and open policies of the FDI. The Bombay Stock Exchange has recently experienced a rising boom, encouraging global players such as Morgan Stanley to invest $68 million in Indian real estate market. As a conclusion of real estate studies in India, we can see that as far as real estate is concerned, the bar of investment has significantly raised. India has immense scope for building infrastructure, in addition to increase investment returns by 50%. The commercial real estate yield in India is larger than any other country, thus making it one of the most popular destinations for real estate investment.

As per real estate studies in India, the lucrative market of real estate in the country are also attracting interest of the NRIs to buy properties for themselves or for their family members or to just make an investment and reap benefits. The great demand has convinced builders to come up with apartments and townships especially designed for NRIs, endowed with five star luxuries and all the modern amenities. For more information on real estate studies in India, log on

to www.realtyplusmag.com. Source: http://www.realtyplusmag.com/content6.html

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Article 4 Diversification in Real Estate

December 8th, 2010 by Marco Santarelli You normally hear the term diversification from financial planners and stock brokers. But you dont hear the term used so often when it comes to real estate investing. The goal of diversification, regardless of the investment, is to reduce the investors overall risk. Diversification in real estate is easily achieved by purchasing income-producing properties in different markets around the country. In some cases, investors even purchase property in other countries. By creating a real estate portfolio of incomeproducing properties across multiple and separate markets, they reduce their exposure to risk. Because real estate markets dont move up and down in value at the same time, or at the same rate, investors can reduce and limit their risk through diversification. Finally, real estate investors should also realize that diversification tends to reduce both the upside and downside potential of their portfolios. That may sound a little counter-productive but, remember, the reason investors want to diversify is to protect their real estate portfolio under a range of economic conditions. They want to avoid being committed exclusively to a single market.

Source : http://www.noradarealestate.com/blog/diversification-in-real-estate/

Article 5: India for Property Investment

It is not without reason that more and more domestic as well as international investors are considering India for property investment. Real estate studies India shows that India has the right environment that offers maximum benefits to the investors. India is the largest democracy with exemplary democratic governance and

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institutions, has strong and transparent legal and accounting system and most of all has legal protection for intellectual property rights. Fundamentals of the Indian economy also have become strong and sustainable. All these factors together make India the hotspot for investment in every sector. According to an UNCTAD (United Nations Conference on Trade and Development) report, India is among the top four Asian destinations for foreign direct investment.

Invest in a profitable business in any sector - raw materials, power supply, fuel, tourism or commercial ventures. Property investments in India include everything from lands, land services, commercial real estate to residential property. Invest in commercial land, agricultural land, land for schools, hospitals or resorts, land for houses, shopping malls and more. Select your spot from the large geographical expanse that is India. Settle for Indias commercial capital Mumbai, or other metros such as Chennai, Kolkata or Bangalore or smaller cities such as Indore, Jaipur, Ahmedabad or Coimbatore. Make revenue from tourism by investing in hotels, guesthouses or resorts in Kochi or Goa. The possibilities are many!

It makes sense to consider India for property investment, if you want to make your business or any other venture profitable. No other country offers you all the ingredients in the right measure to make any venture profitable and successful. With a growing middle class, India offers the ideal market for making great profits, in any venture. The higher buying power of the average Indian translates to the success of shopping malls, tourism and product sales, be it the smaller consumer goods or bigger items such as cars.

As an investor, however, you need to have all the facts straight before investing. And Realty Plus may be the knowledge powerhouse you may be looking for. Read Realty Plus to know the best spots in India for property investment. Realty Plus is India's first real estate monthly magazine packed with hundred pages of in-depth

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reports, surveys, analyses and expert views on a variety of real estate issues. Learn everything about properties in India for sale, buying, selling, renting and leasing out. Find also latest hot property in India, which you can buy at amazing prices. Property investments in India attract investors from every corner of the globe. But when it comes to investing, knowledge is power. And, only Realty Plus gives you the knowledge and confidence to make the right investment decisions in India. Source: http://www.realtyplusmag.com/content1.html

Article 6: Kartiken(2000) states that most of the hindrance in the development of

the real estate sector is created due to the traditional joint families under the control of the head of family/karta. This factor is very common is less developed areas of india.

International Diversification of Real Estate Assets - Is it Worth It? Evidence from the Literature
Patrick Wilson (wilsonpatrick4948@yahoo.com.au) and Ralf Zurbruegg No 126, Working Paper Series from School of Finance and Economics, University of Technology, Sydney Date: 2003-05-01 Abstract: This paper examines the literature to date on the benefits of diversifying property assets internationally. Currently, there is no consensus on how much benefit can be derived from diversifying property portfolios globally. This is contrary to other financial assets where there seems to be common ground supporting holding

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international assets. In the real estate literature, there are two contrasting opinions as to the level of integration global property markets have and the advantages there are from holding international property assets. Specifically, this paper shows there are mixed outcomes irrespective of whether direct or indirect property assets are being examined, and this often depends on what type of statistical procedures are being applied. This study also provides some insights into more recent developments in the literature that might explain some of the diverse opinions that have been formed, these primarily being the inter-temporal instability of correlation coefficients and the impact that structural breaks can have upon statistical analysis.

Real Estate Diversification Benefits

Author Informations: Ronald C. Rutherford (School of Banking and Finance The University of New South Wales Sydney, 2052 Australia and Stichting De Quintessents Amsterdam, The Netherlands) Abstract

Diversification benefits are shown to vary inversely with the correlation between asset returns. The present study estimates average correlation coefficients between real-estate returns from property-specific data of an internationally diversified real estate and in the Netherlands. It is found that diversification benefits within the United States are much larger than on the European Continent. The low correlation found between U.S. real estate returns implies that portfolios of small numbers of U.S. properties would require large return premia. Also, the study helps to explain shy financial intermediaries exist in the real estate industry and when investors should consider employing them.

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Evaluating Within Real Estate Diversification Strategies Journal Publisher ISSN Subject Issue Pages Online Date Journal of Real Estate Portfolio Management American Real Estate Society 1083-5547 Humanities, Social Sciences and Law and Real Estate, Business, Economics Volume 6, Number 1 / 2000 75-95 Wednesday, December 02, 2009

PDF (896.8 KB) Authors Timothy W. Viezer1

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School Employees Retirement System of Ohio, Columbus, OH

Abstract Executive Summary. This article refines previous comparisons of within real estate portfolio diversification by adding controls to the experimental design to determine why one strategy is superior to another. Two new economic diversification methods were among the thirteen strategies tested. The best strategy used sixteen dimensions (four property types in four geographic regions). The return/risk ratio was found to be more important than correlation matrix in explaining the ranking of diversification strategies. The article also discusses how the data's time period and market membership affect the weighting
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recommendations.

International Research Journal of Finance and Economics ISSN 1450-2887 Issue 24 (2009) EuroJournals Publishing, Inc. 2009 http://www.eurojournals.com/finance.htm

Prospects & Problems of Real Estate in India

Vandna Singh Head-MBA Department Seth Jai Prakash Mukand Lal Institute of Engineering &Technology (JMIT) Radaur, Yamunanagar Komal Lecturer, Institute of Technology & Management (ITM), Gurgaon E-mail: komal29m@rediffmail.com

Abstract The present paper entitled as Prospects and Problems of Real Estate in India is an attempt to reveal the issues concerned with the real estate investment sector in India. This paper is concerned with the real estate investment and the emerging trends in the real estate market. The paper has been divided into three sections. First section talks about the real estate sector, its type and the features of the real estate market. Apart from this it deals with the fundamental factors affecting the real value like demand, supply, property, restrictions to use and site characteristics. Second part explains the causes for the present real estate boom. It includes the foreign direct investment in the realty sector and the exposure of the banks to this sector. It also deals with the price variations in the realty sector with reference to per capita income and the GDP. Lastly, third part deals in the constraints in real estate investment which includes various laws to be considered, inflation rate and the
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barriers in the GDP growth.

ANALYSIS OF THE RECENT TRENDS AND THE EFFECT OF THE FINANCIAL CRUNCH ON CONSTRUCTION INDUSTRY
Raveesh Agarwal Faculty, Institute of Management Education, Ghaziabad Ajay Pandey Management Trainee, Institute of Management Education, Ghaziabad Article No: 178 ISSN 0974 9497 Year: August 2009 Volume 3, Issue Abstract This paper deals with the challenges faced by the present generation due to the current crises in the worlds financial system. The current global economic recession is neither the first nor the last to rear its head in the economy. An economic and the financial crises provide a golden opportunity to the country and its private sectors to review its policies and programme that are aimed at improving the productivity and the competitiveness. In this fast and changing global scenario, each and every company is required to constantly improve and renew their programmes and policies so as they are well prepared to face any financial and economic crisis. This paper pays more emphasis towards the recent trends and effects of financial crunches on the real estate sector. Besides this, it also indicates how the ongoing financial crisis is affecting the construction industry by reducing its growth, trade and investment flow, employment, remittances. Apart from all these, the findings reveals that although the financial crunches has a deep impact on the real estate sector but still it has a great opportunity to overcome all such kind of issues by analyzing and reviewing its reforms and issues and by providing its best service to its customers at a lower price than its competitors. Finally, the paper also suggested various issues that a private sector can follow in order to cope up with such situations and conditions and by which they can take advantage in their nearby future.

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Rachel A.J. Campbell, Art as a Financial Investment states that the poor performance of traditional asset in recent years has driven the search for greater returns through alternative asset . The desire to get higher risk adjusted returns from diversification of assets which offer low and even negative correlation with bonds and equities is extremely desirable. There has been a tremendous growth in the traditional alternative investments such as real estate, private equity and commodity futures.

In this paper they took closer look at art as an alternative asset, and diagnose specifically at how this new alternative asset is expected to perform, also during bear markets, when the benefits of diversification are most needed. They look at the risk and return characteristics of art using art market indices, and the prospects for portfolio diversification in the art market using a variety of data across art market sectors, including the Old Master, European Impressionist, Modern and Contemporary art markets. Due to the low correlation of art with other asset classes, they found opportunities for portfolio diversification across assets and across art market . Thus resulting in allowing for the high transaction costs, which are encountered during trading art, when spread over a longer time period.

Summary:
This chapter consist of many journals, research papers, books and other secondary published data to get an insight about the real estate sector. It comprises past researches in real estate sector which helps to understand the market trends of real estate sector and it also helps to analyse the issues, opportunities and problems in real estate sector.

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Chapter 4 Company profile

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4.0 Company Profile

Good living consultants Pvt. Ltd. is one of the growing builders in Delhi. It has developers and builders who are well known for quality construction, loyalty and commitment. With the accent always being on style, the groups projects are specifically designed and today adorn strategic points in the twin cities as projects with uncompromising construction standards and matchless aesthetic beauty. Precisely why the customer base is growing parallel to companys growth. To build and develop housing projects that accomplishes the dreams of our esteemed customers by providing all the luxurious, modern facilities, amenities and lively environment at very affordable prices. With great experience in real estate and building construction field, Good living consultants Pvt. Ltd completed several residential and commercial ventures within Delhi and NCR. The company has also started working in Other states. Recently The Company has successfully completed a residential project of 54 flats in Alwar district, Rajasthan. So company is expanding its business coverage area. All projects are designed precisely to meet the customers needs, and at times even offers more. The hallmark of the group is that it pays attention even to small details so it can present customers with hassle-free houses, which are hard to find in a fiercely competitive real estate market like ours.

Features of the projects undertaken by Good living consultants.

Good living consultants Pvt. Ltd is a Delhi based company that stands totally on the trust placed on it by its valued patrons. The company returns this trust by continuously building new edifices that carry the indelible mark of perfection. Whether a customer requires a place for his administrative center or home, he neednt compromise for anything but the best. Illustrious Architects and Engineers work behind the scenes to ensure all projects have abundant ventilation, natural lighting and other essential amenities. Another prominent feature is Timely completion. Projects are completed on time while ensuring that an increasing accent is placed on quality, comfort and style. Spot on possessions is a major attraction that has endeared the company to a host of its trusted customers
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The some of the appealing features that all ' ' Good living consultants ventures have are: Strategic Location, Elegant design, Convenience, Quality, Conformity with Vaasthu, Serene Climatic Conditions, Idyllic Surroundings, and affordable rates and strict adherence to the legal aspects like, for example, clear title.

The company is into:

y Constructions

As a builder The Good living consultants in its long engineering history has undertaken some of the biggest constructions projects in Delhi. With ample acquired skills and hands on experience in construction of residential and commercial complexes, hospitality, it is ideally equipped to rise up to any challenge in this domain. y Renovations

Renovating an existing property can be a tricky task because it is not merely complex but also involves a certain human element. Understanding the clients final picture of the property and the significance from the existing property both from the engineering stance and the aesthetic stance is where the sky lies. And people at Good living consultants know just how to rule earth. We carefully understand the clients renovation need and then suggest realistic options before setting about executing it. Supported by seasoned engineers and technicians, most renovations we do end up exactly the way the client had dreamed of. y Architectural

As market leaders, Good living consultants is home to some of the most creative architectural brains in the industry who have proved their mettle in projects that stand out for their architectural excellence and safety. The evolved design sense, advanced architectural soft wares we use and the passion of the people behind it all come together to make the distinct difference.

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4.1 Swot analysis of Good living consultants Pvt.Ltd.

Strengths As market leaders, Good living consultants is home to some of the most creative architectural brains in the industry who have proved their mettle in projects that stand out for their architectural excellence and safety. The evolved design sense, advanced architectural softwares we use and the passion of the people behind it all come together to make the distinct difference. The company has a great employee base which is very committed for the company which helps company to accomplish its commitments. The company provides an excellent working environment to its employees which motivate employees to work efficiently. There is great freedom of expression of views so every employee freely express their views and give their ideas which helps company in redefining the problems and issues.

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The company has very good supplier base which helps company in constructing new projects at very competitive price. The company didnt use any advertisement medium for its advertisement but still due to its good contact base it has created its own success story. The hallmark of the group is that it pays attention even to small details so it can present customers with hassle-free houses, which are hard to find in a fiercely competitive real estate market like ours.

Weaknesses As every coin in this universe has two sides good living consultants also has both the side. It has strengths as well as weaknesses. Good living consultants is still following the old traditional marketing strategy. The company does not use any advertising medium so it is not able to attract more eyes. It follows its own traditional approach but for the growth every organization requires research work to know the changing market trends. Due to lack of advertisements and market research the new Shahajanpur project of the company is facing problems. Company couldnt sell any of the flat of this project. The Company doesnt have any office outside Delhi and NCR so it loses control over the workers working on the projects outside Delhi and NCR. Due to lack of supervision of management sometimes company faces loss in some projects.

Opportunity:
The Good living consultants is very active in grabbing the opportunity. It has great vision due to which company has created its own success story. In the year 2005 the company for the first time thought to expand itself by tapping the market out of Delhi and NCR where they can enjoy less or no competition and considering a low budget. The management planned to purchase the

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housing land from the Rajasthan authority in a auction and they bought land at Shahajahanpur , Rajasthan. Land area 3375 sq.m Flat area 1077 sq ft. And now company has not only purchased the land but it has constructed an apartments also on the land.

Also in the same auction the company purchased a commercial plot from the Rajasthan Authority Plot size 4789sq. m. Company is planning to make hotel. This place can take the company to newer heights as this place is connected with the eighth national highway and it also falls in the area of Delhi Mumbai Japanese corridor. The company can earn great profit by selling or leasing these flats to the employees of Japanese firm. This location is very suitable for hotel as well.

Threats:
The real estate market has become very much competitive. The Shahajanpur project is lying in Delhi Mumbai Industrial corridor. This location is attracting the biggest builders and developers so the Shahajanpur project seems as a threat for the Good Living Consultants because it has entered in to a market where very big players of real estate industry has started playing there. The big players of real estate market are threat for the Good living consultants Pvt. Ltd. Natural calamities are another threat for the company as rain; flood and earthquake hinder the construction work as well as damage the existing property.

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Chapter 5 Industry profile

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5.1 An Overview on Real Estate Industry

Introduction
All immovable properties including land, structures on it and other natural resources can be classified as real estate. It is also referred as realty. All types of residential, commercial and industrial properties fall under this domain. Real estate involves the purchase, sale and development of land, residential and non-residential buildings. The major players in this sector are the realtors, builders, brokers, buyers and sellers. The activities of the real estate sector encompass the housing and construction sectors also. With its huge growth potential in the market, real estate sector has emerged as a major field of business in recent time. The real estate sector in India has assumed growing importance with the liberalization of the economy. The consequent increase in the business growth opportunities and migration of the labor force has, in turn, increased the demand for commercial and housing space, especially rental housing. The development and expansion in the real estate sector is influenced by the developments in the retail, hospitality and entertainment (e.g., hotels, resorts, cinema theaters ) industries, economic services (e.g. hospitals, schools ) and information technology (IT) enabled services (like call centers ) etc. and vice versa. The real estate sector is a major employment driver. It is the second largest employer next only to agriculture. All this is due to the chain of backward and forward linkages that the sector has with the other sectors of the economy, especially with the housing and construction sector.

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About 250 ancillary industries such as cement, steel, brick, timber, building materials, etc. are totally dependent upon the real estate industry. The real estate sector in India is flourishing rapidly and widely with a growth rate of about 30 percent each year. The division is like - about 80 percent of the real estate development in India has been in the field of residential housing and the remaining 20 percent includes office, shopping malls, entertainment centers, hotels, multiplexes and hospitals. Indias booming outsourcing business industry and consumption-led growth are contributing significantly to its real estate growth. The outsourcing business houses including call centers, technical consultancy services, and medical transcription units and programming houses constituted around 10 million square feet of real estate growth in India till 2003. In last couple of years the share of commercial sector in the overall real estate growth has been more prominent. Considering the advantages of significantly lower cost of operations in India, several multinational companies across the globe are expressing their willingness and desire to shift their operations to India. According to a 2003 estimated records, the demand for office space by the over expanding IT and IT- enabled service sectors in India would be around 66 million square feet, in the next five years. These multinational companies have realized the fact that in order to expand and flourish their business, the skilled Indian work force can be of great use to them. So they need to provide the Indian professionals with all the facilities of modern life starting from housing to entertainment, so that they can give their best in the work place and at the same time be happy with their standard of living. This trend has set off the development of world class entertainment centers and business centers, across the country, thereby bringing a radical change in the lives of urban population in India. The growing demand of sky scrapers in all the metropolitan cities across the country has changed the image Indian skyline. There is an estimated requirement of 80 million housing units over the next 15 years and 2000 sq. ft. of office space over the next five years. For the purpose of increasing the investment required to plug the aforementioned supply deficits, the government, has allowed the Foreign Direct Investment (FDI) up to 100% in the specified real estate projects including townships, built-up infrastructure and construction development projects. In December 2007, The Security and Exchange Board of India (SEBI), which is the domestic stock market regulator has issued the draft regulations clearing the way for introduction of Real Estate Investment Trusts in India. This
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beneficiary step taken by the government is expected to favorably serve the booming real estate market, by functioning as an alternative source for satisfying the capital needs of the sector. The relatively crucial development potential of real estate industry, coupled by the encouraging and favorable FDI regulations and increasing focus from the private equity sector has created substantial investment and significant growth opportunities for the real estate companies. As this springing up realty sector is getting on into a stable and sustainable economic sector, three key trends, which are likely to shape its future, are emerging: a) Increased focus on execution risks b) Increased investments in mixed-use development projects with a view to extract the maximum synergic benefit c) Syndication among real estate developers on execution of big- ticket development projects, i.e., shift from competition to partnership.

The sustainability of growth in the real estate sector is due to its strong and intensive demand by various other sectors like: i) Rapid expansion of IT and IT-enabled services and also the business outsourcing industry including both the knowledge process outsourcing and the clinical testing outsourcing. ii) Extensive development and acceptance of shopping malls as one stop destination for the consumers. iii) Growing popularity of the special economic zones as preferred destinations for both the manufacturing as well as service industries.

Government Initiatives
The introduction of many progressive reform measures by the government to unlock the potential of the sector and also to meet increasing demand level has provided a better exposure and also helped this sector to emerge as a full fledged grown up player among all the other
36

sectors in the market. The government has announced a stimulus package coupled with the Reserve Bank of Indias move has allowed banks to provide special treatment to the real estate sector, which is likely to impact the real estate in a more positive way. RBI has decided to extend exceptional concessional treatment to the commercial real estate which was restructured on 30th June 2009. y y 100% FDI is allowed in the realty projects through automatic routes. In case of integrated townships, the minimum area which could be developed has brought down to 25 acres from 100 acres. y Urban land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly large number of states. y For the wholly- owned subsidiaries and joint ventures, the minimum capital investment stands at US $10 million and US $5 million, respectively. y Minimum lock-in period of three year is there for the full repatriation of the original investment. y For the single brand retail outlets and for the cash-and-carry through the automatic route, 51% and 100% of the FDI is allowed respectively.

For the better development of the realty sector, government has provided sops to the real estate sector as stated in the 2009-10 budgets. The developers of housing projects (units of 1000-1500 sq. ft.) have been granted a tax holiday on profits from projects initiated in the financial year 2007-08. Such project must be completed before March 1, 2012.

Along with this, the Finance minister allocated US $ 207 million to grant a 1% interest subsidy on home loans up to US $ 20,691, provided, the cost of the home should not be more than US $ 41,382. This subsidy is expected to provide a better and a further boost and hike to the housing sector.

With the boom in the property market spreading in all directions, the real estate sector is touching new heights of success. However, this growth in the realty sector is also due to the various policies adopted by the government to facilitate investments

37

mainly in the economic and industrial sectors. Also the new stand adopted by the Indian government regarding the foreign direct investment (FDI) policies has been encouraged and appreciated by increasingly large amount of countries to invest in Indian Real Estate and in Indian Properties.

India preempted USA as the second-most favored destination for FDI in the world. With the changing trends in the current Indian investment scenario, India is able to attract more than three times foreign investment at US $ 7.96 billion during the first half of 2005-06 fiscal, as against US $ 2.38 billion during the corresponding 2004-05, making India one of the most prominent player among the dominant host countries for the FDI in Asia and the Pacific (APAC).

FDI in Real Estate on the high growth path

Foreign direct investments (FDI) in Indian real estate market are currently on the high growth path. Study on future of real estate investments in India is brought out by The Associated Chambers Of Commerce and Industry of India (ASSOCHAM) says real estate market is growing at the rate of 30 %p.a. According to the industry experts view, FDIs share in domestic real estate market is up to 10% by March 2007 and has touched about 26% level from 16% of fiscal 2005-06. This is of great importance for the global real estate players in the Indian real estate market and increasing demand of the office space particularly in the IT and BPO sectors. The forecast of ASSOCHAMs Study on the Future of the Real Estate Investment in India was estimated to be about US $ 60 billion future market size of real estate business in India, the share of foreign investments will be within the range of US $25-28 billion for the year 2010 .The overseas investment is also having larger space in Indian SEZs and the widely increasing numbers of the shopping malls is naturally fatting their share in the real estate market. In 2003-04, India received a total amount of about US $ 2.70 billion FDI inflow, out of this about 4.5% was committed to the real estate sector. In 2004-05, this data had increased up to US $ 3.75 billion FDI inflow, of which the real estate share was about US
38

$ 10.6%. However, for the year 2005-06, the estimated FDI inflow was found to be US $ 5.46 billion, out of which around 16% was contributed to the real estate sector. The study further projects that in 2006-07, the FDI inflow had touched US $ 8 billion in which the real estate contribution was about 26.5%. And for the upcoming years the prediction for the FDI inflow is estimated to be increasing and the real estate market share will also fatten by this.

Why Invest in Indian Real Estate

Flying high on the wings of booming real estate, property in India has become a dream for every potential investor looking forward to dig profits. Everybody is eyeing on the Indian property market for a wide variety of reasons: y Real estate sector in India is witnessing tremendous boom. Its ever growing economy is on a continuous rise with 8.1% increase witnessed in the last financial year. The smashing growth in the economy has increased the purchasing power of the people and creates demand for the real estate sector. y Every year approximately 2 million or more new graduates are produced from the various Indian Universities, thereby creating demand for about 100 million sq. ft. of the office and industrial space. y Presence of large number of reputed companies will attract more companies to initiate their operational bases in India thus creating more demand for corporate space. y Huge amount of dividend is yielded by the real estate investments in India. Around 70% of the foreign investors are making profits and other 12% are breaking even. y Apart from IT, ITES and Business Process Outsourcing (BPO), India has shown its expertise in other sectors also, like, auto-components, chemicals, apparels,

pharmaceuticals and jewellery where it can match the best in the world. This kind of

39

positive attitude of India is surely going to attract more and more foreign investors in the nearby future.

The concession provided by the Indian government in the FDI rules has invited more foreign investors and real estate in India seems to be one of the most lucrative grounds at present. The revised investors friendly policies have proved to be quite economic and productive for the investors, apart from this have allowed foreigners to own properties, and dropped the minimum size for housing estates built with foreign capital to 25 acres (10 hectares) from 100 acres (40 hectares). With these relaxing and changed policies of the investment, the overseas firms can now put up the commercial buildings as long as the projects surpass 50, 000 sq. mt. (538,200 sq. ft.) of floor space.

Opportunities for Investors in Indian Real Estate

In the recent time, India has become a potential goldmine for investors all over the world. With the flourishing and expanding economy and liberalized government policies, investors from all over the globe are choosing India as their business destination. As Indian real estate rules the economic vibes of the country, the most important beneficiary of the recent boom in this sector is the investors. Driven by the positive growth in the real estate scenario and the Government of Indias decision to allow 100% foreign direct investment (FDI) under the automatic rule in the construction and development there has been a significant rise in the number of Indian as well as foreign investors in the realty sector. Developers like DLF, Ansal, Omaxe, Ambuja, Unitech, Vatika and Sahara Infrastructure are among a few that have initiated large scale real estate developments in the residential sector catering to all segments of the society. Real estate sector is much more professionally managed with a number of big players including both developers and corporate, entering into the business. The real estate market is not the monopolistic market, as there are more and more players entering into this development game. In the residential sector, with the increase of disposable incomes and easy availability of home loans, most builders tries to woo the investors with the lucrative features and the latest inclusions
40

of premium luxury apartments and condominiums fitted with the most modern accessories in home luxury. Apart from the residential segment, the commercial venture includes office spaces, sprawling malls, multiplexes and retail outlets. As per the past reports, around 200 or more new malls with a combined retail space of about Rs.2.5crore/ sq. ft. and an estimated investment of around Rs. 12.5 crore are expected for the upcoming year.

Future of Real Estate Market in India

One question that arises in everybodys mind is that whether the property prices in India will fall or not in the nearby future? The answer to such question will eventually decide whether to invest in the real estate of India now or rather wait for the property prices to fall. According to the real estate experts and the investment Gurus, the Indian real estate sector will definitely going to have a smashing rise in the nearby future. Thus people are more interested in investing in the real estate of India. According to the market experts, the Indian real estate sector has a tremendous potential and have a bright future in the upcoming years. With the relaxed FDI norms for the Indian real estate market and a tremendous boom in this sector, has made the property investment in India to be at a safer side. This is also supported by the fact that the Indian Government has liberalized its foreign direct policies to attract higher foreign investment. Its not at all true that there is a sudden rise in the property prices. It could be witnessed for the last couple of years that the prices of the property in India whether it is residential or commercial has continued to rise. For example, some of the better developed cities like Noida and Gurgaon, property prices have increased up to five times within a few years. Its not the case that only these cities are experiencing an appreciation in the real estate prices, property prices have been continuously raising across all parts and sectors of the country. It may be the case that the appreciation in the price hikes in other parts of the country would not be that much. According to a recent survey, India stands fourth among the top four Asian destinations for the foreign direct investment. India being the largest democracy with excellent democratic

41

governance and transparent property laws attracts more and more people to invest in the Indian realty market. Looking to the above facts, it can be concluded that as far as the Indian realty sector is concerned, it is going only in one direction, that is, upward. And this current scenario will lead more and more investors to invest in the Indian real estate market.

Chapter 6 Data

42

6.0 Data collection:

The methodology followed by the Research Group consists of both Qualitative and Quantitative research techniques. The data used is both Primary & secondary data.

6.1Primary method
1) Focus Group interviews 2) Face to face in depth interview 3) Telephonic Interview 4) Questionnaires

6.2 Secondary method

1) Magazines on Property 2) Internet sites on Property 3) Internet websites of popular property developers of India

Sources of pimary Data:

Focus Group interviews: Focus group consists of a small group of people gathered together to have a detailed discussion on their opinions over a particular subject. The Research Group conducted some focus group interviews. Some of these groups consisted of constructors, builders, dealers, agents, consultants of real estate business. some of these groups consisted of customers of realty sector.

43

In Depth Interviews: An In Depth interview is an open ended, one-to-one interview conducted on an individual to understand his or her perceptions, attitudes and underlying behaviors towards a particular subject. The Research Group conducted an in depth interview on many respondents who were either customers or prospective customers of realty sector or they were in to real estate business.

Questionnaire: A questionnaire is a series of well structured questions asked in a formatted manner to the respondents to gather information on a subject. The Research Group conducted questionnaire surveys two groups of respondents. The first group consists of 70 respondents who were customers of real estate. The second group consists of 213 respondents who were either in real estate business or related to real estate business.

1. Secondary Data:

o The Secondary data consists of information that already exists somewhere having been collected for another purpose and researcher begins the research work by first going through the secondary data. o Here Secondary data is collected from various property journals and property sites like www.makaan.com and www.9acres.com.

44

Chapter 7 Data analysis

45

7.1 Analysis of dealers data:Table 7.1 How do you maintain your sales? Cumulative Frequency Valid Depends upon walk-in Advertisements Contact Based Total 35 75 103 213 Percent 16.4 35.2 48.4 100.0 Valid Percent 16.4 35.2 48.4 100.0 Percent 16.4 51.6 100.0

Fig.7.1
46

Inference: Answering the question How do you maintain you sales? about 48.36 percent of the respondents answered that they maintain their sales on contact bases whereas about 35.21 percent of the respondents said that they advertise about their company and the properties available with them for sale. Now the company can go for the advertisements as its competitors are using this mode also to target prospective and potential customers. The company can increase its sale by targeting maximum customers.

Table 7.2 Which medium will you prefer for advertisement? Frequency Valid Magazine Newspaper Internet TV/Radio Total 58 93 47 15 213 Percent 27.2 43.7 22.1 7.0 100.0 Valid Percent 27.2 43.7 22.1 7.0 100.0 Cumulative Percent 27.2 70.9 93.0 100.0

47

Fig 7.2 Inference: The answer to the question which medium do you prefer for advertisement? 27.23 percent of the total respondent said that they prefer magazine whereas 22.07 percent of the people said that they prefer internet for advertisement .So about 50 percent of the total respondents said that they will go for magazine or internet for the advertisement of their property. Now Good living consultants can go for any medium but news paper is the cheaper and most successful as 43.66% respondents have witnessed this, so Good living consultants also can prefer the same medium.

48

Table 7.3 Do you want to expand your business from current state? Frequency Valid Yes No Total 189 24 213 Percent 88.7 11.3 100.0 Valid Percent 88.7 11.3 100.0 Cumulative Percent 88.7 100.0

Fig. 7.3

Inference: On asking the question whether the property dealers and builders wants to expand their business from current level, 88.73 percent of the people responded that they want to expand their business from current level whereas only 11.27 percent of the people said that they are satisfied with their current level of business and they dont want to further expand their business. As most of the competitors are expanding their business or planning to expand their business so Goodliving consultants should also expand their business to sustain and grow in the market.

49

Do you want to expand your business from current state * which medium will you prefer for expansion of your business? Cross tabulation which medium will you prefer for expansion of your business Relation Openin ship g new Advertise Collaborat ions 11 5.8% Total 189 100.0%

building offices ments do you wan t to exp and you r busi ness fro m curr ent stat e Total Count 16 55 28.9% 108 56.8% % of Total .0% .0% .5% No Yes Count 16 55 29.1% 107 56.6%

% within do you want to expand your business 8.5% from current state

% within which medium will you prefer for 100.0% 100.0% 99.1% expansion of your business % of Total Count 8.4% 0 28.9% 0 .0% 56.3% 1 100.0%

100.0%

99.5%

5.8% 0 .0%

99.5% 1 100.0%

% within do you want to expand your business .0% from current state % within which medium will you prefer for .0% expansion of your business

.0%

.9%

.0%

.5%

.0%

.5%

11 5.8%

190 100.0%

% within do you want to expand your business 8.4% from current state

% within which medium will you prefer for 100.0% 100.0% 100.0% expansion of your business

100.0%

100.0%

50

% of Total Table 7.4

8.4%

28.9%

56.8%

5.8%

100.0%

Inference: The result for the crosstab between Do you want to expand your business? and which medium will you prefer for expansion of your business? shows that out of 88.73 percent people who wants to expand their business from current level 56.3 percent of the respondents want to go for advertisement for the expansion of their business as they have witnessed the significant growth through advertisements.. It shows that there is a good number of property dealers and builders who wants to advertise their business, so Good living consultants also should go for the advertisements. Table7.5

How do you see real estate sector in terms of opportunities? Frequency Valid very good Good Average Poor Total 115 64 26 8 213 Percent 54.0 30.0 12.2 3.8 100.0 Valid Percent 54.0 30.0 12.2 3.8 100.0 Cumulative Percent 54.0 84.0 96.2 100.0

51

Fig. 7.4

Inference: Asking the question How do you see current status of Real Estate Sector in terms of opportunities? 53.99 percent of the total respondents said that the sector is really good and there are lots of opportunities of growth in this sector. 30.05 percent of the people responded the sector as good, 12.21 percent of the respondents said that its is average whereas only 3.76 percent of the respondents considers it as poor in terms of opportunities, which shows that the sector is on a boom in terms of opportunities

52

Table 7.6

On given a chance will you go for collaboration with other firms Frequency Valid yes no Total 44 169 213 Percent 20.7 79.3 100.0 Valid Percent 20.7 79.3 100.0 Cumulative Percent 20.7 100.0

Fig.7.5

Inference: The response to the question on given chance will you go for collaboration with other firms nearly80 percent of the total respondents answered as NO where as only 19.72 percent of the total respondents answered that YES that can work in collaboration with other firms. The Bar charts above shows the result shows that the Real Estate sector is a highly unorganized sector where different property dealers and builders do not want to work in collaboration with each other.
53

Table 7.7

Do you provide any special packages like construction + interior designing or renovation + interior designing? Frequency Valid yes no Total 35 178 213 Percent 16.43 83.56 100.0 Valid Percent 16.43 83.56 100.0 Cumulative Percent 16.43 100.0

Do you provide any special packages like construction + interior designing or renovation + interior designing?
200 180 160 140 120 100 80 60 40 20 0 Yes No

Series1

Fig.7.6

54

Inference: The response to the question Do you provide any special packages like construction + interior designing or renovation + interior designing? nearly 84 percent of the total respondents answered as NO where as only 16 percent of the total respondents answered that YES they provide these type of interior designing packages. So this inference can be drawn by the above chart that there are very few real estate companies which provides these packages so the company can get the first movers advantage by providing this.

55

7.2 Analysis of Consumer feedback

Table 7.8 What was the factor that attracted you most when you were suppose to buy a property? Cumulative Frequency Valid Brand name of developer Location Affordability Total 3 27 40 70 Percent 4.3 38.6 57.1 100.0 Valid Percent 4.3 38.6 57.1 100.0 Percent 4.3 42.9 100.0

Fig. 7.7

56

Inference: While purchasing a property the factor that effects buying decision of a customer the most is Affordability 56.34 percent of the total respondent said that they look for affordability firs while purchasing a property. After affordability the second most prominent factor is location of the property, about 38.03 percent of total respondents responded in favor of Location.

Table 7.9

Descriptive Statistics N Upto What extent price Range affects your 70 choice of society(Rate on a scale of 1-7) Upto What extent connectivity to public 70 transport affects your choice of society(Rate on a scale of 1-7) Upto What extent proximity to workplace 70 affects your choice of society(Rate on a scale of 1-7) Upto What extent Availability of loan 70 5.1857 .70798 2.9429 .84931 2.2000 .80937 Mean Std. Deviation

6.1000 .68419

affects your choice of society(Rate on a scale of 1-7) Upto What extent Resale value affects your 70 choice of society(Rate on a scale of 1-7) Upto What extent Clear title of property 70 4.1429 .85611 2.3286 .63065

Affects your choice of society(Rate on a scale of 1-7) Upto What extent infrastructure Affects 70 5.6714 .92817

your choice of society(Rate on a scale of 17)

57

Descriptive Statistics N Upto What extent price Range affects your 70 choice of society(Rate on a scale of 1-7) Upto What extent connectivity to public 70 transport affects your choice of society(Rate on a scale of 1-7) Upto What extent proximity to workplace 70 affects your choice of society(Rate on a scale of 1-7) Upto What extent Availability of loan 70 5.1857 .70798 2.9429 .84931 2.2000 .80937 Mean Std. Deviation

6.1000 .68419

affects your choice of society(Rate on a scale of 1-7) Upto What extent Resale value affects your 70 choice of society(Rate on a scale of 1-7) Upto What extent Clear title of property 70 4.1429 .85611 2.3286 .63065

Affects your choice of society(Rate on a scale of 1-7) Upto What extent infrastructure Affects 70 5.6714 .92817

your choice of society(Rate on a scale of 17) Valid N (list wise) 70

Inference: On asking to rate the factors affecting the choice of a society to purchase the property Price Range were the first and foremost factor that effects the decision. On a scale of 1-7 the mean for this factor comes out to be 6.1 which is very high. This shows that how price range effects the decision while purchasing a property in a society.

58

The second factor that affects the most is Infrastructure of the property and the ambience of the society. Very close to Infrastructure factor is Availability of loan for the purchase of that property. This shows that people to a large extent believes in availing loan for the purchase of their property and hence the factor Availability of loan affects the buying decision of a person to large extent.

Perception of people about Delhi and cities of NCR.

45 40 35 30 25 20 15 10 5 0

41 38 36

24 19 10 6 3 4 16 12 8 4 4 2 law and order 9 9 5 19 19 12 21 15 10 4

Location

Business Opportnities Gurgaon Noida

Quality of living

infrastructural development

Greater Noida

Ghaziabad

Delhi

Fig. 7.8

Inference: Here opinion of the people about Delhi and various cities of NCR were taken on various attributes like Location, Business Opportunities, Law and Order, Quality of Living, Infrastructural Development and the following inference can be drawn. Location: Delhi was considered to be the best place to live as far as location is considered. Whereas giving it a competition next to Delhi is Noida. It is chosen as the best location to live in

59

entire NCR. Noida is located close to the Capital of India and is also very closely located to Indirapuram, another upcoming city.

Business Opportunities: As far as Business opportunities are concern Delhi is again at number but according to the opinion of the respondents all the NCR cities including Ghaziabad is giving it a good competition. So in terms of Business Opportunities both Delhi as well as the cities of NCR has scored well. Quality of living: Delhi is again the first choice of the people on the parameter of Quality of Living following it is Noida. Law and Order: considering law and order as the parameter Delhi and all the taken cities in NCR region lies almost at the same level with Delhi leading again and Noda just following the lead. Infrastructural Development: Delhi is again top in the list as far as Infrastructural development is concerned whereas on second place in the list is greater Noida. Table 7.10 Up to what extent special packages offered by a real estate company, like Renovation + interior designing or construction + interior designing attracts you (rate on a scale of 1to 7) Rating scale(1-7) Valid 1 2 3 4 5 6 7 total Frequency 2 3 5 10 20 25 5 70

60

up to what extent special packages offered by a real estate company, like Renovation + interior designing or construction + interior designing attracts you (rate on a scale of 1to 7)

frequency
30 25 20 15 10 5 0 1 2 3 4 5 6 7 frequency

Fig. 4.9

Inference: on asking up to what extent special packages offered by a real estate company, like Renovation + interior designing or construction + interior designing attracts you (rate on a scale of 1to 7), maximum respondents find these packages very attractive which attracts them while purchasing a property .

61

Chapter 8 Findings and analysis

62

8.0 Findings and analysis

y Almost 87% construction companies, builders, property dealers and agents want to expand their business and for expansion of their business they want to go for advertisements of their business as they have witnessed significant growth though advertisements. y The people consider the real estate sector in terms of opportunities and growth as very good. This shows that the sector is on a boom in terms of opportunities. y There are very few property dealers, builders and consultants who provide special packages like construction + interior designing or renovation + interior designing . y Maximum companies in major dont want to work in collaboration. This shows that the Real Estate sector is a highly unorganized sector where different property dealers and builders do not want to work in collaboration with each other.

Availability of loan and proximity to workplace are the most effective factors which affect the buying decision of customers.

In Peoples perception Delhi is considered to be the best place on all the parameters and Noida is the second choice.

There is large number of people who find the special packages provided by real estate companies, like construction + interior designing or renovation + interior designing very attractive.

63

Chapter 9 Recommendations

64

Recommendations
 Company should plan to expand its business by diversification, as its competitors are expanding or planning to expand its business so that company can grow in this competitive era (refer to table-4.2 and fig- 4.2).  Apart from the architectural, construction and renovation company should provide some special packages including interior designing also. Company should provide some special packages like construction + interior designing or renovation + interior designing as there are large number of customers who get attracted by these packages but there are very few companies ,consultants and dealers who provide these packages, so company can get the first movers advantage(refer to table 4.7, 4.10 and fig-4.6,4.9 respectively).  The company has limited its research to the Delhi and NCR region only; it should go for other regions also.  Company should go for the advertisements. As there are large no of companies, dealers and agents who are advertising themselves to expand their target area. Maximum companies found that the news paper is most effective advertisement medium so they

prefer this medium. So Good living consultants can opt any advertisement medium but news paper and magazine are most preferred. (refer to table -4.2 and fig-4.2)  Company should consider the various attributes like Location, Business Opportunities, Law and Order, Quality of Living, Infrastructural Development etc. , while deciding its pricing strategy, as the price range was the most effective factor which affected the customers choice. Delhi is top in the list followed by Noida so company can decide its pricing strategy according to it. The price of property in Delhi could be higher than other places (table no-4.8,4.9 and fig-4.7 ,4.8 respectively).  A follow up should be there for the customers to whom the contact in first meeting is not successful.

65

Chapter 10 Bibliography

66

References
www.makaan.com www.magicbricks.com www.ansalspropertiesltd.com www.eros-group.com www.eldecogroup.com www.omaxe.com www.parsvnath.com www.ashianahousing.com www.gurgaonproperties.net www.realestatencr.com www.gurgaonrealestate.com www.estatedeveloper.com

www.bank bazaar.com www. noradarealestate.com www.bank bazaar.com

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Chapter 11 Annexure

68

Annexure 1
Questionnaire
Respondents Name______________________________________ Name of Apartment______________________________________________ Self owned property Rental

1.If rental, have you invested in any other housing complex Yes No

2.What is the most important factor that attracted you when you were suppose to buy property? Brand name of developer Attractive and frequent ads Location Affordability

3.To what extent do the following factors influence your choice of a housing complex(Rate on a scale of 1-7)? Not at all Price range Connectivity to Public transport very large extent

_____/_____/_____/_____/______/_____/______ _____/_____/_____/_____/______/_____/______

Proximity to Workplace

_____/_____/_____/_____/______/_____/______

Availability of loan _____/_____/_____/_____/______/_____/______

69

Resale value

_____/_____/_____/_____/______/_____/______

Clear title of Property

_____/_____/_____/_____/______/_____/______

Infrastructure of Society

____/_____/_____/_____/______/_____/______ 1 2 3 4 5 6 7

4.Give preference among the cities on the bases of given parameters

Gurgaon Location

Noida

Greater Noida

Ghaziabad

Delhi

Business Hub

Quality of Living

Law and Order

Infrastructural Development

70

5. To what extent special packages offered by a real estate company, like Renovation + interior designing or construction + interior designing attracts you (rate on a scale of 1 to7) Not at all very large extent

_____/_____/_____/_____/______/_____/______ 1 2 3 4 5 6 7

Personal details:Address:

...........................

Contact No:.

E- mail: ...

Date: ____/____/2010

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Annexure 2
Questionnaire

Q. 1. Which category you best fit in:

1 Financer

2 Agent / dealer

3 Registered company

4 Builder /constructor Civil contractor

Are you in Construction?

Yes

No

If Yes, Then site details _______________________________________________________ _______________________________________________________ _______________________________________________________

Q.2 How do you manage your business/projects?

1 Category of personnel employed Based

2 Contact

3 Advertisement

4 Area specific Contacts

Q.3 Do you want to expand your Coverage area of business?

Yes

No

72

If yes, how:-

1 Relationship building

2 Opening new Offices

3 Advertisements

4 Channel Partners

Q.4 How much network is important in this sector?( plz tick)

No use

Most important

Q.5 what do you feel about current status of real-state in terms of opportunities?

1 Very good

2 Average

3 Good

4 Poor

Q.6 Which medium will you prefer for advertisement of your property?

1 Magazine

2 Newspaper

3 TV/Radio

3 Internet

Q.7 Given a chance will you go for collaboration with other firms?

Yes

No
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Q.8 Do you provide any special packages like construction + interior designing or renovation + interior designing?

Yes

No

If yes, the please specify _________________________________________________________

_________________________________________________________

Q. 9 any suggestions:-

_________________________________________________________

_________________________________________________________

Personal details:Name & Organization

Address:

...........................

Contact No:.

E- mail: ...

Date: ____/____/2010
74

Chapter 12 Case study

75

A case study On Good living consultants Pvt. Ltd

Market overview of Indian real estate sector The real estate sector is a key growth driver of the countrys economy. The contribution of the residential segment alone to Indias GDP is around 5 to 6 per cent. The real estate sector is one of the highest FDI-attracting sectors in India, with recorded FDI inflow of more than US$ 8.9 billion (INR 403 billion) between April 2000 and September 2010.

Favourable demographics (a young population and increasing urbanization) and growth in the services sector, especially the IT sector, have primarily driven growth in the real estate industry.

DLF, Unitech, Ansal Properties, K. Raheja Corporation and Parsvnath Developers are among the major Indian players in the sector.

In the last decade, FDI in real estate has increased due to the growing interest of foreign players in the Indian market. Over the last decade, many international players, including developers such as Emaar, Ascendas, Keppel Land, Tishman Speyer and Nakheel Group, and investors such as Morgan Stanley, Och-Ziff Capital, Citigroup, Goldman Sachs, JP Morgan, Warburg Pincus and Deutsche Bank, have entered the Indian real estate market.

Market segments y y Residential space Commercial space

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y y

Hospitality space Special economic zones(SEZs)

In recent years, the industry has evolved from a highly fragmented and unorganised market into a semi-organised market. The sector can be divided into residential, commercial, retail and hospitality asset classes.

Good living consultants Pvt. Ltd. Good living consultants Pvt. Ltd is a real estate company which has been active achieving gains since 1996. The company has been engaged mostly in residential projects , and few commercial projects.The company was registered in the year 1996. It has its office at C-59, South Ex Part II, Delhi.

Projects Completed by Good Living Consultants

1. Cosmos CGHS y Cosmos group was the first master piece of good living consultants. it was consisted of 175 flats. every flat was example of good architecture and

designing. It was available at affordable price .

These flats were allotted to the members in the year 1999.

2. Manglik CGHS o After the success of first project cosmos CGHS, company was exited to move forward and then it undertook the another residential project in dwarka and this project was named as Manglik CGHS.

o It was consisted of 112 flats. in this project company constructed 2bhk and 3bhk flats. this time also flats were more improved and very affordable.
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o This project was Finished in 2003.

3. Commercial complex o After completion and success of two residential projects company moved in to commercial project. o The company constructed a commercial complex in Rajnagar extension , Ghaziabad. o The project consisted of 20 shops including hall and office space. Due to some reason company sold the commercial project and used that money for investment in to a new residential project in dwaka. o The project was named as Naval Technical CGHS

4.Naval Technical CGHS

o The project consisted of 238 flats including 2bhk , 3bhk, 4bhk, and 5bhk units.

It is observed that the company has been keenly engaged in the real estate sector in residential market that too especially tapping the market at Dwarka , Delhi. In the year 2005 the company for the first time thought to expand itself by tapping the market out of Delhi and NCR where they can enjoy less or no competition and considering a low budget..The management planned to purchase the housing land from the Rajasthan authority in a auction and they bought land at Shahajahanpur , Rajasthan.. As the company was planning to expand and diversify its operations so as to gain huge profits they all buy the commercial land in that auction and are now running a rest house ..And in the near future the company has planned to built a hotel on the commercial land of size near to an acre. The company has also constructed a housing apartment named as Good living apartment

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Good living apartment.

In the year 2005 the company purchased land from Rajasthan Authority for the commercial purpose. Now company has constructed Good living apartment. Land area 3375 sq.m Flat area 1077 sq ft. Total number of flats = 54, 2-BHK units.

Also in the same auction the company purchased a commercial plot from the Rajasthan Authority Plot size 4789sq. m. near to 1 acre. Plan to make hotel

Althought the company planned to earn profits from the housing project but unfortunately they were not able to generate any profit from this investment in the residential market as the management was unable to book any flat in the housing apartment.

The apartment is situated near to national highway eight, it is the most attractive most factor of this project. Another attractive factor is that the project falls in the belt of the Delhi Mumbai industrial corridor. Many Japanese firms are lying besides of this project, which are its potential and prospective customers. Company is targeting these firms but company is facing a lot of problem. Company couldnt sell its flats even after having such attractive features and factors. Company has hired a team to do market survey so that company can find out the reasons of failure. The team members are some interns who want to prove themselves and some managers. The team members are did the market survey. The sample for the research consisted of customers of real estate, builders, developers, dealers and agent.

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The outcome of the research: y The potential customers were unaware of this project due to lack of advertisement. And this lack of advertisements proved as an opportunity for the other builders and constructors as they were able to target a wider range of customers. y In Delhi and NCR the demand was very high and company had a very good contact base also, so company dint find any difficulty in selling its projets. But in Rajasthan company dont have such a good contact base. y The location where the Good living apartment is situated has attracted eyes of bigger builders and developers. These developers has great advertisement and interesting push and pull factors which allure the potential customers. y Every company is expanding their business and also introducing very innovative ideas like loyalty cards and synergy cards for its customers, but the Good living consultants was still following the old traditional way of marketing. Implications: After creating its own success story the failure of Shahajanpur project made the organization think about it. It was very shocking and surprising as well for the management people. After analyzing the report good living decided to do a market research before starting any new project. The management felt that the company should change its attitude towards real estate market .Now Good living consultants is planning to advertise its Shahajanpur pr projects including its Shahajanpur project. Now good living consultants is doing research to find out most effective and efficient mode of advertisement in real estate sector. The company also wants to expand its business so company has started tapping the market outside Delhi and NCR also. Apart from architectural, construction and renovation company wants to operate in different fields also so that profit could be maximized. On the recommendation of research team the company is planning to diversify into interior designing, company is about to open a new interior designing unit. Company would offer very attractive packages like construction + interior designing or renovation + interior designing, at attractive prices to attract the customers. According to the research team there are very

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few companies which provide these types of interior designing packages with construction or renovation so the company can get the first movers advantage.

The company is expecting a very good market response after implementing all the recommendations given by the research team.

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Chapter 13 Synopsis

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SYNOPSIS OF THE PROJECT

Diversification of Good living consultants a real estate company
POOJA Industry guide: Mr. S.K Chauhan Faculty guide: Ms. Kokil Jain

GOOD LIVING CONSULTANTS PVT. LTD.

Objectives of the study

Primary objectives

To understand and observe the practical work in real estate sector.

To seek out the difference between theory and practical work.

To observe the functioning of marketing department of Good living consultants Pvt. Ltd.

To develop new marketing skills.

To have a direct contact with the employees of Good living consultants Pvt. Ltd to learn from them.

Secondary objectives

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1. To study how a real estate company can grow by diversifying itself . 2. To study general buying behavior of customers while purchasing a property and perception of peoples about Delhi and cities of NCR.

Findings
Through the analysis we found out

1. Almost 87% construction companies, builders, property dealers and agents want to expand their business and for expansion of their business they want to go for advertisements of their business as they have witnessed significant growth though advertisements. 2. The people consider the real estate sector in terms of opportunities and growth as very good. This shows that the sector is on a boom in terms of opportunities. 3. There are very few property dealers, builders and consultants who provide special packages like construction + interior designing or renovation + interior designing . 4. The small companies in major dont want to work in collaboration. This shows that the Real Estate sector is a highly unorganized sector where different property dealers and builders do not want to work in collaboration with each other.

5. The major external factors which people consider while purchasing the property are price, availability of loan and proximity to workplace.

6. In Peoples perception Delhi is considered to be the best place on all the parameters and Noida is the second choice . 7. There are large number of people who find the special packages

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provided by real estate companies,

like

construction + interior

designing or renovation + interior designing very attractive.

GOOD LIVING CONSULTANTS PVT. LTD

RECOMMENDATIONS

Through the analysis I found out:

1. Company should plan to expand its business by diversification, as its competitors are expanding or planning to expand its business so that company can grow in this competitive era. 2. Apart from the architectural, construction and renovation company should provide some special packages including interior designing also. Company should provide some special packages like construction + interior designing or renovation + interior designing as there are large number of customers who get attracted by these packages but there are very few companies ,consultants and dealers who provide these packages, so company can get the first mover s
advantage.

3. The company has limited its research to the Delhi and NCR region only; it should go for other regions also. 4. Company should go for the advertisements. As there are large no of companies, dealers and agents who are advertising themselves to expand their target area. Maximum companies found that the news

paper is most effective advertisement medium so they prefer this medium. So Good living consultants can opt any advertisement medium but news paper and magazine are most preferred. 5. Company should consider the various attributes like Location, Business Opportunities, Law and Order, Quality of Living, Infrastructural Development etc. , while deciding its pricing strategy,
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as the price range was the most effective factor which affected the customers choice. Delhi is top in the list followed by Noida so company can decide its pricing strategy according to it. The price of property in Delhi could be higher than other places. 6. A follow up should be there for the customers to whom the contact in first meeting is not successful.

GOOD LIVING CONSULTANTS PVT. LTD

MY PERCEPTION ABOUT INDUSTRY GUIDE

1. Sir was very cooperative and very helpful to me.

2. He was very king and lenient to me.

3. When needed he was strict also. 4. He guided me very well throughout the project.

5. He taught me the working style of an organization in the corporate world.

6. I learned how to behave professionally.

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