diversification of good living consultants pvt. ltd

8/6/2019 Diversification of Good Living Consultants Pvt. Ltd.

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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 FACULTY GUIDE

Satender chauhan Ms. Kokil jain

Head of all departments

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 ofMr. Satender

Chauhan, Head of all departments, Good living consultants Pvt. Ltd.

The period for which he/ she was on training was foreight weeks, starting from

9thMay to 9

thJuly. 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 Signature

(Faculty Guide) (Student)


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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 consultantsPvt. 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 forgiving 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)


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Table of Contents

CHAPTERS PAGE NO1. Executive summary 62. Research methodology

2.1 Objectives 8

2.2 Research design 8

2.3 Scope of the study 8

2.4 Research methodology 8

2.5 Factors and parameters 9

2.6 Research technique 10

2.7 Sampling technique 11

2.8 Limitations 12

Summary of the chapter 13

3. Critical review of literature 15-24Summary of the chapter 25

4. Company profile 26-27SWOT analysis 28-30

5. Industry profile 32-406. Data

6.0 Data collection 41

6.1 Primary method 41

6.2secondary method 41

7.Data analysis

7.1 Analysis of dealers data 44-53

7.2 Analysis of consumer feedback 54-59

8. Findings and analysis 61

9. Recommendation 63

10. Bibliography 65

11. Annexure


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Annexure 1 67-69

Annexure 1 70-72

12. Case study 73-79

13. Synopsis 81-84


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Chapter 1

Executive summary


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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 AREAS COVERED: - Delhi, Noida, Greater Noida, Ghaziabad and Gurgaon.y RESEARCH DESIGN: - Descriptive.y SOURCE OF INFORMATION: - Primary and Secondary Data.y DATA COLLECTION METHOD: - Structured and non disguised questionnaire.y SAMPLING METHOD: - Convenience sampling.


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Chapter 2

Research methodology


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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 the1. Research problem2. Data collection3. Research technique4. 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 centralbusiness 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 styleof living prevalent in the 5 cities included in NCR.

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

5. Infrastructural Development This parameter helps in analyzing how respondents rate5 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 problemsetting.

y Quantitative techniques seeks to quantify the data & typically applies some form ofstatistical analysis.

Also research can be divided as:

o Descriptiveo 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 To estimate the percentage of units in a specified population exhibiting a certain behaviour.y 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 assome respondents didnt have much knowledge about the other cities in NCR.

Denial of many Property Dealers and Builders to provide the information about theproperties 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 of19.8 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%, whichtells 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 cost-

effective 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. Foreigninvestors, 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 income-

producing 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 ofthe 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 o

india.

International Diversification of Real Estate Assets - Is it Worth It?

Evidence from the Literature

Patrick Wilson([email protected]) andRalf 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 Journal of Real Estate Portfolio Management

Publisher American Real Estate Society

ISSN 1083-5547

SubjectHumanities, Social Sciences and Law and Real Estate, Business,

Economics

Issue Volume 6, Number1 / 2000

Pages 75-95

Online

DateWednesday, December02, 2009

PDF (896.8 KB)

Authors

Timothy W. Viezer1

1 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: [email protected]

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 byanalyzing 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 ConstructionsAs 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 RenovationsRenovating 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 ArchitecturalAs 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 hasentered 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 3 0

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 createdsubstantial 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


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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 100% FDI is allowed in the realty projects through automatic routes.y 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 largenumber of states.

yFor the wholly- owned subsidiaries and joint ventures, the minimum capital investmentstands 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 originalinvestment.

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

of1000-1500 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


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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 isup 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


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$ 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 ison 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 andcreates demand for the real estate sector.

y Every year approximately 2 million or more new graduates are produced from the variousIndian 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 initiatetheir 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 other12% are breaking even.

y Apart from IT, ITES and Business Process Outsourcing (BPO), India has shown itsexpertise in other sectors also, like, auto-components, chemicals, apparels,

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


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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


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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


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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 leadmore and more investors to invest in the Indian real estate market.

Chapter 6

Data


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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.


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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 siteslike www.makaan.com and www.9acres.com.


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Chapter 7

Data analysis


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7.1 Analysis of dealers data:-

Table 7.1

How do you maintain your sales?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Depends upon walk-in 35 16.4 16.4 16.4

Advertisements 75 35.2 35.2 51.6

Contact Based 103 48.4 48.4 100.0

Total 213 100.0 100.0

Fig.7.1


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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 Percent Valid Percent Cumulative Percent

Valid Magazine 58 27.2 27.2 27.2

Newspaper 93 43.7 43.7 70.9

Internet 47 22.1 22.1 93.0

TV/Radio 15 7.0 7.0 100.0

Total 213 100.0 100.0


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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 canprefer the same medium.


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Table 7.3

Do you want to expand your business from current state?


Valid Yes 189 88.7 88.7 88.7

No 24 11.3 11.3 100.0

Total 213 100.0 100.0

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.


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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 forexpansion of your business

Total

Relation

ship

building

Openin

g new

offices

Advertise

ments

Collaborat

ions

do

you

want to

exp

and

you

r

busi

ness

fro

m

curr

ent

stat

e

Yes Count 16 55 107 11 189

% within do you want to expand your business

from current state

8.5% 29.1% 56.6% 5.8% 100.0%

% within which medium will you prefer for

expansion of your business

100.0% 100.0% 99.1% 100.0% 99.5%

% of Total 8.4% 28.9% 56.3% 5.8% 99.5%

No Count 0 0 1 0 1


from current state

.0% .0% 100.0% .0% 100.0%



.0% .0% .9% .0% .5%

% of Total .0% .0% .5% .0% .5%

Total Count 16 55 108 11 190


from current state

8.4% 28.9% 56.8% 5.8% 100.0%



100.0% 100.0% 100.0% 100.0% 100.0%


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Table 7.4

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?


Valid very good 115 54.0 54.0 54.0

Good 64 30.0 30.0 84.0

Average 26 12.2 12.2 96.2

Poor 8 3.8 3.8 100.0

Total 213 100.0 100.0

% of Total 8.4% 28.9% 56.8% 5.8% 100.0%


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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 aboom in terms of opportunities


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Table 7.6

On given a chance will you go for collaboration with other firms


Valid yes 44 20.7 20.7 20.7

no 169 79.3 79.3 100.0

Total 213 100.0 100.0

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.


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Table 7.7

Do you provide any special packages like construction + interior designing or renovation

+ interior designing?


Valid yes 35 16.43 16.43 16.43

no 178 83.56 83.56 100.0

Total 213 100.0 100.0

Do you provide any special packages like construction + interior designing or renovation +

interior designing?

Fig.7.6

0

20

40

60

80

100

120

140

160

180

200

Yes No

Series1


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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 thatYES 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.


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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?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Brand name of developer 3 4.3 4.3 4.3

Location 27 38.6 38.6 42.9

Affordability 40 57.1 57.1 100.0

Total 70 100.0 100.0

Fig. 7.7


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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 Mean Std. Deviation

Upto What extent price Range affects your

choice of society(Rate on a scale of1-7)

70 6.1000 .68419

Upto What extent connectivity to public

transport affects your choice of society(Rate

on a scale of1-7)

70 2.2000 .80937

Upto What extent proximity to workplace

affects your choice of society(Rate on a

scale of1-7)

70 2.9429 .84931

Upto What extent Availability of loan


scale of1-7)

70 5.1857 .70798

Upto What extent Resale value affects your


70 2.3286 .63065

Upto What extent Clear title of property

Affects your choice of society(Rate on a

scale of1-7)

70 4.1429 .85611

Upto What extent infrastructure Affects

your choice of society(Rate on a scale of1-

7)

70 5.6714 .92817


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Descriptive Statistics

N Mean Std. Deviation

Upto What extent price Range affects your


70 6.1000 .68419

Upto What extent connectivity to public

transport affects your choice of society(Rate

on a scale of1-7)

70 2.2000 .80937

Upto What extent proximity to workplace


scale of1-7)

70 2.9429 .84931

Upto What extent Availability of loan


scale of1-7)

70 5.1857 .70798

Upto What extent Resale value affects your


70 2.3286 .63065

Upto What extent Clear title of property

Affects your choice of society(Rate on a

scale of1-7)

70 4.1429 .85611

Upto What extent infrastructure Affects

your choice of society(Rate on a scale of1-

7)

70 5.6714 .92817

Valid N (list wise) 70

Inference: Onasking 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 of1-7 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.


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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.

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

3

10

4

9

5

1916

19 19

10

6

12

4

9

15

4

8

2

12

4

38

24

41

21

36

0

5

10

15

20

25

30

35

40

45

Location BusinessOpportnities

Quality of living law and order infrastructuraldevelopment

Gurgaon Noida Greater Noida Ghaziabad Delhi


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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 ofQuality 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) Frequency

Valid 1

2

3

4

5

6

7

total

2

3

5

10

20

25

5

70


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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)

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

of1to 7), maximum respondents find these packages very attractive which attracts them while

purchasing a property .

0

5

10

15

20

25

30

1 2 3 4 5 6 7

frequency

frequency


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Chapter 8

Findings and analysis


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8.0 Findings and analysis

y Almost 87% construction companies, builders, property dealers and agents want toexpand 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 verygood. 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 specialpackages like construction + interior designing or renovation + interior designing .

y Maximum companies in major dont want to work in collaboration. This shows that theReal Estate sector is a highly unorganized sector where different property dealers andbuilders do not want to work in collaboration with each other.

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

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

y There is large number of people who find the special packages provided by real estatecompanies, like construction + interior designing or renovation + interior designing very

attractive.


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Chapter 9

Recommendations


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Recommendations

Company should plan to expand its business by diversification, as its competitors areexpanding 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 somespecial 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 forother regions also.

Company should go for the advertisements. As there are large no of companies, dealersand 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 notsuccessful.


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Chapter 10

Bibliography


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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


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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 Location

Attractive and frequent ads Affordability

3.To what extent do the following factors influence your choice of a housing complex(Rate on a

scale of1-7)?

Not at all very large extent

Price range _____/_____/_____/_____/______/_____/______

Connectivity to _____/_____/_____/_____/______/_____/______

Public transport

Proximity to _____/_____/_____/_____/______/_____/______

Workplace

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


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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 Noida Greater Noida Ghaziabad Delhi

Location

Business Hub

Quality of Living

Law and Order

Infrastructural

Development


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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 of1 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 2 Contact

Based

3 Advertisement 4 Area specific

Contacts

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

Yes No


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If yes, how:-

1 Relationship building 2 2 Opening new

Offices

3 Advertisements 4 Channel Partners

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

1 2 3 4 5

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


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Chapter 12

Case study


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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 Residential spacey Commercial space


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y Hospitality spacey 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 year1996. It has its office at C-59, South Ex Part

II, Delhi.

Projects Completed by Good Living Consultants

1. Cosmos CGHSy Cosmos group was the first master piece of good living consultants. it was

consisted of175 flats. every flat was example of good architecture and

designing. It was available at affordable price .

y These flats were allotted to the members in the year1999.

2. Manglik CGHSo 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 of112 flats

diversification of good living consultants pvt. ltd

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