SUMMER INTERNSHIP 2013 - 2014

Amity Business School, Amity University, Lucknow Campus

Consumer Behaviour Analysis of Real Estate Market in Lucknow

Lakshaya Realinfra Pvt. Ltd.
Project Guide(s) 1. Mr. Akhil Sidhant 2. Ms. Charu Bisaria
By: Alok Tewari MBA G Sec B Batch 2012-14
Amity Business School, Amity University, Lucknow Campus

Objectives
To

determine the reasons behind investment decisions and the preferences of consumers regarding property choices To identify the factors and developer attributes which the consumers consider to be most important before investing in a project To determine consumers awareness about green building concept and the importance they attach to it To identify the major problems which the consumers face in property transactions

Amity Business School, Amity University, Lucknow Campus

Research Methodology
SCOPE OF THE STUDY

The present study covers the major locations of Lucknow and tries to understand the perceptions of people regarding various aspects of real estate market. The findings of the study at best can provide a preliminary knowledge to developers but any implementation involving significant costs should not be done without a more detailed study using strict statistical procedures so that the sample statistics can provide accurate estimate of population parameters.
RESEARCH DESIGN: Exploratory

A survey research method was the basic research methodology. I interacted personally with people to get the questionnaire filled which had questions regarding the respondents basic information such as age, income, occupation, kind of property they are looking for, factors they consider important before making investment decision etc.
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DATA COLLECTTION METHODS: Primary data collected through questionnaire method which was designed to keep in view the objective of the study. Secondary data collected through internet sources, research papers, and published reports by various institutions. SAMPLE DESIGN: Study of the geographical area comprising main locations of Lucknow was undertaken. The sample design was based on convenient sampling. Sample size consisted of 150 respondents of this region. DATA PROCESSING: Data processing was carried out once the process of collection of primary data was complete. This was done with the help of MS-EXCEL sheets using statistical tools.
Amity Business School, Amity University, Lucknow Campus

Findings

The maximum respondents are in the age group 30-40yrs while the age bracket 41-50yrs comes in next. Maximum respondents are private sector employees. Public sector employees also form a significant percentage of respondents. Maximum no. of respondents have family income below 10lakh. The income bracket 10-15lakh also contains a sizeable no. of respondents while only 6% of respondents have annual family income above 30lakh 43% of respondents are graduates and 40% are post graduates. Percentage of respondents with intermediate and high school as their academic qualification are 13% and 4% respectively. 77 out of 150 i.e, 51% of respondents are end users, 41% are expecting good capital return on investment while only 8% are expecting good rental returns. Demand for apartments is the highest with 48% respondents interested in such property. Plots are also in demand with 25% respondents showing interest in them. The demand for basic projects is the highest with 62% respondents looking for such projects. Demand for luxurious and School, Amity super luxurious projects is only 27% Amity and Business 11% respectively. University, Lucknow Campus 6

53% respondents (79 out of 150) were aware of the green building concept. The average importance given to such concept on a scale of 1-10 by those aware of it was 7.1 Government clearance is considered to be the most important factor in choosing a project. Quality and timely delivery of projects emerge as more important factors than brand name. Not much significance is attached to brand ambassador in deciding upon a developer. A high degree of importance is attached to on site visit before investment. 81% of the respondents feel that high property prices act as a big hindrance in investment Delays in completion of the project emerges as the most problematic factor besides high prices ( 49%) while 29% of the respondents consider lack of transparency on part of the developer to be most problematic. A major percentage of respondents make use of print Amity Business School, Amity media for searching/buying property. A significant University, Lucknow Campus proportion also relies on personal reference for such

Limitations
Due

to shortage or paucity of time it is possible that all the related and concerned aspects might not have been covered in the project. This is a short term research based on 6 weeks study. Validity of the responses could be affected as the people are generally reluctant to furnish complete and accurate information The information obtained from questionnaire can have biases. Research has been conducted in a particular region i.e. Lucknow, and not India, so inference cannot be drawn at macro level. Convenient Sampling has been used therefore the results obtained cant be applied to population in general.
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Recommendations
1.

2.

3. 4. 5. 6. 7. 8.

Since the results of the survey have identified rising property cost and delays in getting possession as two big problems for buyers, the use of pre-casting technology in the projects can be considered. This will not only bring down the cost by 15% but also reduce the completion time to 2/3 of the initial time. Focus must be on quality of work even at the cost of slipping the deadline. This is the only way new entrants can compete with established players. There is no need to look for a brand ambassador for promotional purpose. Transparency in dealings is the need of the hour. The concept of green building can be implemented provided it is marketed effectively. Tie up with leading banks is important if the lower to middle income group has to be catered to. Government approval is a must before starting work on a project as without it everything else can come to a naught. A major portion of the advertising budget should be spent on print media as it finds favour with most respondents.
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Conclusion

Tremendous potential in Lucknow market Better infrastructure as compared to other districts More employment opportunities Availability of land at affordable rates

Amity Business School, Amity University, Lucknow Campus

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THANK YOU

Amity Business School, Amity University, Lucknow Campus

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