Brand Association

Submitted by- Rohan Mantri B1276375 3rd July 2013.

Acknowledgement
I take this opportunity to express my sense of gratitude to all those who helped me in completing this project. The successful task would be incomplete without the mention of the people whose constant guidance and encouragement crown all efforts with success. First of all I would like to convey my thanks to Mr. Prakash Shingi (Mentor, Flame) for his constant suggestions which have resulted in successful completion of project I would like to express my sincere gratitude to Mr. Parag Shah (Chairman Estado, CoFounder Flame, Managing Director of Oxford Golf and Country Club) for giving me the opportunity to work and learn with Estado Properties. I would also like to thank Mr. Pushkar Shukla (V.P Marketing and Sales) and Ms. Prachiti Bhandari (Research Associate) who extended to me all the support and cooperation I required during working in the field in various areas from time to time. The individual and personal efforts of everyone concerned were memorable and I am once again sincerely thankful to the whole team of Estado Properties and Flame for their cooperation and providing me the required information and resources and helping me throughout for the successful completion of this project.

Date: 3rd July 2013 Place: Pune Rohan Mantri

TABLE OF CONTENTS
1 2 EXECUTIVE SUMMARY ................................................................................................................ 3 Introduction of the company ...................................................................................................... 4 2.1 3 Product Offering ................................................................................................................. 5

RESEARCH METHODOLOGY: ..................................................................................................... 22 3.1 3.2 3.3 OBJECTIVES OF THE STUDY ...................................................................................... 22 SCOPE OF THE STUDY: ................................................................................................ 22 DATA COLLECTTION METHODS:- ...................................................................................... 22

4 5 6

Brand Association ..................................................................................................................... 23 Brand associations role in creating brand equity ..................................................................... 27 Pune .......................................................................................................................................... 31 6.1 6.2 6.3 6.4 6.5 Pune Real Estate market Overview................................................................................... 34 Residential Launch Trend in Pune. .................................................................................... 41 Growth Drivers ................................................................................................................. 45 Infrastructure development.............................................................................................. 50 Residential Demand-Supply analysis of Pune ................................................................... 52

Preferred Zone in Pune ............................................................................................................. 54 7.1 7.2 7.3 7.4 7.5 destination Hinjewadi ....................................................................................................... 56 Destination Wakad............................................................................................................ 59 Destination Tathawade ..................................................................................................... 61 Destination Ravet .............................................................................................................. 63 Destination Undri .............................................................................................................. 65

8 9 10 11

Questionnaire ........................................................................................................................... 67 Data analysis and interpretation............................................................................................... 69 Recommendation for Estado ................................................................................................ 78 Conclusion ............................................................................................................................. 79

EXECUTIVE SUMMARY

I started my internship project on 6th May 2013 in Estado Properties asked to Recommend Estado on how should Estado improve the brand, and also conduct a research on the developing areas in Pune. I was asked to collect the information related to real estate and also conduct a survey on brand recall and brand association. I prepared the questionnaire for brand recall and brand association. The objectives of my questionnaire are as follows 1. To find which brand has maximum recall. 2. To find what attributes are related with the brand and 3. To find out the buying preferences. I worked directly under Mr. Pushkar Shukla (V.P. Marketing and Sales) on branding options for the company and also in forming various marketing strategies.

2 INTRODUCTION OF THE COMPANY

Formed in the year 2009, by 3 young & dynamic entrepreneurs: Mr.Darshan Shah, MS in Entrepreneurship. (Managing Director) Mr Sohan Ajgaonkar, PGDBM in Finance and Entrepreneurship Mr Ajey Chaugule, Masters in International Hospitality Management & Marketing Estado Properties is a young company with a fresh and unique approach to the Punes Real Estate market. Estado is headed by its Chairman Mr.Parag Shah. Estado Properties has been formed on the simple premise that the realty markets need to create credibility through transparency in transactions, quality products, customizing products to customer needs and above all timely deliveries. We believe that this guiding principle will help the group to develop its unique position in the market as a developer who delivers a quality product on time and has the flexibility to create homes suited to client needs. The culture of the organization is deep rooted into its four pillars, Quality, Ethics, and Relationship & Transparency (QERT).

2.1 PRODUCT OFFERING

The company has only one ongoing project of which the possession would be given in October 2013. The product details are as follows

16 units: 4BHK Apartments & Penthouses 2 Buildings ESTADO PRESIDENTIAL I & II 13 Apartments 3353 Sft 3 Penthouses 4943 Sft Open Gardens Presidential Lounge Library & Business Centre Architect Mrs.Amla Sheth & Anand Bhagat

Presidential-I Estado Presidential-I an 18m tall building which is an epitome of trust that our investors and clients share with us. It comprises of 6 stories having 4 duplex apartments with three standard apartments and one penthouse. All the apartments are duplex 4BHK. Following are the details of 4BHK apartments in Presidential-I (all dimensions are in ft.)

Living & dining room has large space with no columns or pillars as obstruction. The space is completely optimized to gives an elegant look (living room size is 16*18 and dinning 21*8). All Bedrooms have attached

bathroom. The master bedroom has wooden laminate flooring and a master balcony size Rest (master 12*17, bedrooms bedrooms balcony10*4), (size14*12).

A servants room has been provided, with a separate entrance and an attached bathroom. Servants room has access to dry balcony and kitchen .The size of this room is 5*3. All bathrooms of Presidential-I are of same size (10*5) and have designer dado tiles. CP fittings are of Isenberg and sanitary wares are of Kohler. All door locks used are of ENOX. Main door is made out of teakwood (red mirandi, size of door is 4*8). Provision has been given for air conditioning and covered ducts been provided to keep the

compressor out of sight. Concealed Tata sky HD wiring is given in all bedrooms and living room (HD recording in master bedroom) and concealed telephone wiring. All the 4 apartments of Presidential-I have been sold out. Following are our esteemed clients at Presidential I:

Flat No. 101 Dr.Vishwas Chaugule & Mrs. Snehal Chaugule MDS (Pedodontist) Integrated Oral Health Care Centre

Flat No. 301 Mr. Jamshed Mistry, Professor of Management Accountancy at Suffolk, University Boston

Flat No. 201 Mr. Nemish Shah Chairman, Enam Holdings

Flat No. 401 Mr. Mahendra Singh Dhoni Captain of the Indian Cricket Team

PRESIDENTIAL-II

Presidential-II comprises of 6 stories and have 12 Apartments i.e. 2apartments on each floor. Out of 12apartments, 2 are penthouses. All apartments have a plunge pool attached with the balcony. The penthouse has a full-fledged swimming pool on terrace.

Living Room

The Living room has large space; it has no columns or pillars that gives total space usage gives a grand look to the room. It has vitrified tiles (size of tiles800*800) and air conditioning provision is provided. A glass window is provided in living room from where the view of the plunge pool is clear and soothing. Concealed Tata sky wiring and telephone wiring provision has also been provided (living room size 21*15). All apartments are equipped with 3-phase meter connection. The electric load bearing capacity is up to 35kv. Generator back up has been provided for all common areas, the capacity of the generator is 125kv. Thickness of wall is 9 inch and the beam is 9 inch thick. Fly ash bricks have been used throughout the buildings which is temperature & water-resistant. French Windows of height is 6.5feet have been given in all the rooms. Best quality of glass is used (Saint Gobain - 6 mm thick). OBD (oil bound distemper) used for ceilings and walls. Ceiling

10

mounting is done by gypsum. Gypsum is used as it gives excellent finish and an even structure.

Plunge Pool & Balcony

Each apartment is enriched with a plunge pool in the balcony. Plunge pool is 3.5feet deep (size of pool is 8*14). Balcony has anti-skid tiles. The living room is visible from the pool & balcony (size of balcony 14*14). Ducts have been provided for Ac compressors, the ducts and covered with Shera (made out of cement and has wooden look finish) that doesnt spoil the elegant look of the building.

11

Master Bedroom Presidential Master bedroom has wooden laminated flooring, which gives room a rich & sophisticated look. Master bedroom has a walk-in wardrobe and an attached bathroom. A glass door separates walk-in wardrobe and bathroom.

Tata sky HD with recording (size of living room 16*14, walk-in wardrobe 8*8 and bathroom 8*11). The size of Guests bedroom is 11*14.

12

Dining & Kitchen The dining area is spacious (size of dining room is 17*13). Kitchen is adjacent to dining room and is having vitrified tiles. Equipped with granite kitchen platform and stainless steel sink. Provision for water purifier and chimney hobs is given in the kitchen.

Dry balcony is attached to the kitchen, provision for washing machine and dishwasher has been given in the dry balcony. A storeroom is attached to kitchen to accommodate all kitchen necessities (size of store room is 6*5).
13

Entrance Lobby Presidential-II has a beautifully designed spacious entrance lobby with a reception desk. It has seating arrangement for 8 to 10 people (size of lobby is 410sq.ft). For security reasons CCTV cameras have been installed at all the common areas of the project including the entrance lobby.

ThyssenKrupp elevator, with capacity for 8 people is given in both the buildings. A Glass door is given at the entrance of the lobby.

Landscaping & Presidential Lounge A large & beautiful landscape area is given beside the presidential lounge. The landscape has a developed garden with seating arrangements (size of landscape area
14

6000sq.ft). The Presidential lounge comprises of a business center, cafeteria and library (size of lounge is 510sq.ft). Height from bottom to ceiling is 15feet.

Penthouse There are 2 spacious penthouses in the Presidential-II. Penthouses have a scenic terrace on top, with developed garden and swimming pool (size of penthouse is 4943 sq.Ft, size of terrace is 2443 sq.Ft. the pools dimensions are 11x15).

3 car parks provided with the penthouse and 2 car parks for standard apartment (size of car parking is 144 sq.ft each). Italian marble flooring provide in living and dining

15

room, Modular kitchen, false ceiling, Air condition in Master bedroom and bedroom, glass partition in bathrooms are all the elements of Penthouse.

Exterior of Presidential

Without compromising on any of the quality aspects, texture paint & shera have been used as exterior finish throughout the project. Shera gives a good exterior finish, covers most of the ducts and uneven spaces and has long life. Natural black stones used at entrance and pebble blocks use inside the premises. Height of building from ground till top is 25meters. The distance between car parking and fencing behind is 20feet. The fencing done for building has planters, which enhances the aesthetics of the project. Shera is use for fencing, plantation done outside and inside the premises. Two water tanks having capacity of 50000 liters provide underground water and overhead tank has 12 thousand liters capacity. Bore well water is also available and is lab tested, certified as potable to drink.

16

Floor Plan Odd

For the privacy reasons, even and odd floor plans vary in design. The pool in the odd floor plan is on the
Floor Plan - Even

left while it is on the right in the even floor plan.

Strategic Location

17

Kiwale, located on the north-west side of PCMC and Pune, has received a wave of the real estate magic wand. By a combination of various advantageous factors, Ravet & Kiwale are now among the most promising residential locations on the Pune property market As per the research analysis by Knight Frank, ICICI Housing, TOI & HT, Ravet and surrounding are among top 8 strategic locations in Pune.

Source: Knight Frank Investment Advisory Report-2012 Following are the distances of key locations from Estado Presidential:

18

Mumbai (Panvel) Lonavala Pune Airport Hinjewadi IT Park Baner - 13 Kms Wakad

97 Kms 45 Kms 28 Kms 10 Kms 9 Kms

Subrata Roy Sahara Stadium 4 Kms

Infrastructure Development around Estado Presidential

Pune Bangalore Highway 8 lane work ongoing Along with service roads. 3 proposed flyovers after exit from Pune Mumbai Express way until Chandani Chowk. 19

Proposed International airport at Rajguru Nagar Chakan. Vision Mall, near Ginger hotels on the Pune Bangalore highway. New road - 5.6 km road connecting Kiwale to Pimpri-Chinchwad reduces the distance by 10 Kms. Proposed Construction of Pune Metro Phase 1 connecting PCMC to Swargate.

Nearest Hotels from Presidential:

Courtyard Marriott Pune - Hinjewadi - 9.2 Kms or 18 Minutes Drive Holiday Inn Express - Mumbai Bangalore Highway 8 Kms or 15 mins. Drive Sayaji Hotels Ltd - Mumbai-Bangalore Highway, Wakad - 6.8Kms or 10 mins Drive Sentosa water Resorts - Mumbai Bangalore Highway - 1 km or 2 mins Drive

Nearest Hospitals from Presidential: Aditya Birla Memorial Hospital - Aditya Birla Hospital Marg, Chinchwad, Pune 8 Kms or 12 mins Drive Life Point Hospital Wakad, 6.7 Kms or 10 mins Drive. Varad Hospital, Kiwale, Pune 2 Kms or 5 mins Drive

Nearest Supermarket from Presidential: D mart 10.8 Kms or 15 mins Drive Vision Mall 6 Kms or 10 mins MORE Departmental store, Pimpri - 7 Kms or 12 mins Drive. Gokul Super Market Pradhikaran, Nigdi PCMC - 4.6 Kms or 7 mins

Nearest Multiplex from Presidential

Fame Jay Ganesh Vision Mall, Near Olympia Service Station 6.8 Kms or 10 mins Drive. Big Cinemas Pune Premier Plaza, Old Mumbai Pune Highway, Chinchwad 8.3 Kms or 15 mins Drive. 20

Nearest School from Presidential

Sahyadri International School -12 Kms or 25 mins Drive Mercedes Benz International School Hinjewadi - 8 Kms or 15 mins Drive Lions Club High School Mamurdi - 2.5 Kms or 5 mins Drive St Judes School - Talwade, Pimpri Chinchwad - 4 Kms or 8 mins drive

Ravet is, in fact, a confluence point of the old NH4, the Katraj-Dehu Road bypass and the Mumbai-Pune Expressway. Moreover, it is located equidistantly from two major real estate market drivers - the Hinjewadi IT hub and Pimpri-Chinchwad industrial belt. At this strategic point, JNNURM has now launched a 45-metre, grade-separated, nonsignaled four-lane BRT (Bus Rapid Transport) road that provides access to the key area of Aundh in less than ten minutes. Pimpri, Chinchwad, Chakan and Talegaon are now quite easily accessible from Ravet.

21

3 RESEARCH METHODOLOGY:
What is research?
Research can be defined as a scientific and systematic search for pertaining information on a specific topic. We define research as the systematic design, collection, analysis and reporting of data and findings relevant to a specific situation facing the company.

3.1

OBJECTIVES OF THE STUDY

Project has mainly two following objective1. To determine the customers perception. 2. To determine the customers expectations.

3.2 SCOPE OF THE STUDY:

The project undertaken gives me a broad view of the Pune Real Estate industry and also helps me to understand the consumer behavior.

3.3 DATA COLLECTTION METHODS:1. Primary data are collected through questionnaire method which is designed to keep in view the objective of the study. 2. Secondary data is collected through internet sources, research papers, and published reports by various institutions.

22

4 BRAND ASSOCIATION
Brand association is anything which is deep seated in customers mind about the brand. Brand should be associated with something positive so that the customers relate your brand to being positive. Brand associations are the attributes of brand which come into consumers mind when the brand is talked about. It is related with the implicit and explicit meanings which a consumer relates/associates with a specific brand name. Brand association can also be defined as the degree to which a specific product/service is recognized within its product/service class/category. While choosing a brand name, it is essential that the name chosen should reinforce an important attribute or benefit association that forms its product positioning

23

1. Customer benefit Customer benefit refers to the need that is satisfied by a product. For Example, cavity control by a toothpaste is a customer benefit. Customer benefit may be rational, psychological (emotional) benefit, or self- expressive benefit. A rational benefit is closely linked to a products attribute and would be part of a rational decision process. A psychological benefit relates to what feelings are engendered when buying and or using the brand. An example of a rational benefit for a computer to a consumer would be its ability not to lose work whereas a psychological benefit would be the feeling of being professional. For a car, the emotional benefit would be the feeling of safety when driving it as a driver of a Volvo car would testify. The self-expressive benefit relates to the ability of a brand to help a consumer to communicate his or her self-image. Since consumers have multiple roles, the consumer has an associated self-concept and a need to express that self-concept. The purchase and use of brands is one way to fulfil the need for self-expression. He gives the example of a consumer who may define him/herself as successful and powerful by driving a Mercedes Benz.

2. Product attributes These refer to a products characteristics. Attributes are associated with a products rational benefit. For example, a Volvo cars attribute is durability. Similarly, a shampoos attribute would be its safety to use every day. A marketer requires to identify an attribute that is important to a major segment and not already claimed by a competitor, e.g. an attribute that offers something extra (like features or services that offer something better). The identification of an unmet customer problem can sometimes lead to an attribute previously ignore by competitors. Indeed, unmet needs are strategically important because they can represent opportunities for firms that want to make major moves in the market.

24

3. Use / application A marketer can associate a brand with a particular use or application. For example, a beer can be associated with good friends in a warm social setting. A study of the coffee market revealed that there were nine relevant use contexts for coffee.

4. User / Customer Another way of positioning a brand is to associate it with a type of user or customer. This involves identifying the brand with its target segment. For example, a brand can be associated with those who are interested in weight control as would be the case of a new drug.

5. Celebrity This is the individual who endorses a brand. Linking a celebrity with a brand can transfer associations such as reliability, strength, performance, and so on. The extent to which the association can be linked to the celebrity depends on how credible the person is perceived by the audience. Specifically, a source is more persuasive when the audience perceives him or her as highly credible as when perceived as being low in credibility. In other words, the person need not be credible but it is how the consumers perceive him.

6. Lifestyle / Personality The brand can be viewed as a person. Like a person, a brand can be perceived as being competent, trustworthy, active, or youthful. A brand personality may help communicate a products attribute and thus contribute to a functional benefit. Similarly, it can help create a self-expressive benefit that becomes a vehicle for the customer to express his or her own personality.

7. Competitors

25

A firm positions its brand using the organizations attributes such as innovation, a drive for quality, and a concern for the environment. A firm can position its brand with respect to a competitor. Sometimes it is not important how good customers think a firm is, but how they believe it is better than a given competitor. While this brand association can be accomplished by comparative advertising, it is not usually allowed in some countries

8. Country of Origin One more strategic option that a marketer has is to associate a brand with a country. The country of origin has an effect on the markets perception of a product - either a positive or a negative perception. Cateora (1996) asserts that a company competing in global markets may manufacture products world-wide and when the customer becomes aware of the country of origin, there is the possibility that the place of manufacture will affect product/brand image. The influence may be to add credibility or to lower it.

Examples of Brand Association. When I say 5-star Hotel I immediately recall the brand J.W.Marriott. Thus the brand Marriott is associated with Premium 5star hotels. The Nike Swoosh, Nokia sound, Film Stars as with Lux, signature tune Ting-tingta-ding with Britannia, Blue colour with Pepsi, etc. Associations are not reasons-tobuy but provide acquaintance and differentiation thats not replicable. It is relating perceived qualities of a brand to a known entity. For instance- BMW is associated with sophistication, fun driving, and superior engineering. Most popular brand associations are with the owners of brand, such as - Bill Gates and Microsoft, Reliance and Dhirubhai Ambani

26

5 BRAND ASSOCIATIONS ROLE IN CREATING BRAND EQUITY

The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable and superior in quality and reliability. Mass marketing campaigns can also help to create brand equity. If consumers are willing to pay more for a generic product than for a branded one, however, the brand is said to have negative brand equity. This might happen if a company had a major product recall or caused a widely publicized environmental disaster.

In his significant work on brand equity Aaker suggests that brand associations are vital in creating value for the company since the host of different brand associations provide value to in different ways. He identifies five propositions that all feed into creating value for the company and thereby help generate strong brand equity. Those are; helping to process/ retrieve information, differentiating the brand, generating a reason to buy, creating positive attitudes/feelings and lastly providing a basis for brand extensions

27

Help process and retrieve information A brand association can serve as an information chunk that can help the decision maker to cope with the otherwise large amount of information that the consumer may have difficulties accessing and processing. Associations can also help in the interpretation of facts. For example, with high-technology brands such as HP, brand associations may influence the interpretation of a long specifications list

Differentiate Associations of a brand may play a critical role in differentiating brands from one another. A specific brand association linked to a certain brand can become the key competitive advantage. An example is the high performance soft-drink Gatorade that is highly associated with athletic competition where competing brands may have trouble being credible in claiming the same feature. Hence, brand associations can be a great barrier to competitors.

Reason to buy Plenty of brand associations include product attributes or customer benefits that provide the decision maker with reason to buy or consume the brand. An example is That calls for a Carlsberg which provides the consumer with a reason to buy the beer whenever one has an occasion. Another example is the Vestas tagline Experience the forces of wind. If this is well-positioned in the consumers memory as a brand association, it can provide future Vestas employees with a reason to buy. Other brand associations may provide credibility and confidence in the brand. Thus, influence the purchase decision.

Create positive attitudes

28

Some brand associations are interlinked and can stimulate positive attitudes that are transferred to the brand. Celebrity endorsers, symbols, and slogans can in the right context elicit positive feelings towards the brand (Ibid). For instance, Nike has successfully used Michael Jordan as an endorser. Finally, Nokias slogan connecting people is spot on in most situations.

Basis for extension An association can also serve as the basis for an extension by creating a sense of fit between the brand and the brand extension or by providing reason to buy the extension. For example the brand association low cost with Easy Jet and Easy Hotel shows how marketers can use the associations as a platform for extension.

Brand associations role in creating customer-based brand equity

To create strong Customer Based Brand Equity the consumer needs to have strong, unique and favourable brand associations in mind. This is important because these brand associations will differentiate the brand from other competing brands.

Strong brand associations The strength of brand associations is influenced by two factors; personal relevance and the consistency with which it is presented over time. The more deeply a consumer thinks about any brand information and relates it to existing knowledge in memory, the stronger the brand association will be. This corresponds to the way the association is spread in the associative network by the brand as a node. Strong associations will be recalled faster and will make the consumer pay attention to the brand

Favourable associations
29

Favourable associations for a brand are those identified as desirable to consumers in terms of convenience, reliability, and effectiveness and deliverable by product. Marketers create favourable associations by convincing consumers that the brand possess just what the consumer need and want. Unique associations Unique brand associations refer to the brands unique selling proposition. At best, the brand associations should be exclusive to that specific brand and not be shared with any other competing brands.

30

6 PUNE

Pune, also referred to as the Oxford of the East due to the presence of numerous educational institutes, it is the seventh most populous city in India and the second largest in Maharashtra. Punes urban agglomeration also known as the Pune Metropolitan Region (PMR), is spread over 1340 sq.km. And consists of Pune Municipal Corporation (PMC), Pimpri Chinchwad Municipal Corporation (PCMC), Pune cantonment and Khadki Cantonment. As per the Census, the total population of PMR was 5.05 million. Pune is the seventh largest metropolis in India, the second largest in the state of Maharashtra after Mumbai and the largest city in the Western Ghats. Pune city is the administrative capital of Pune district. Today, Pune is known for its educational facilities and relative prosperity. Pune is the cultural capital of Maharashtra. It has a growing industrial hinterland, with information technology and automotive companies setting up factories in the district. Pune is a thriving industrial centre sheltering manufacturing units of some of the most prestigious industrial houses of the world. The dynamic culture and job opportunities attract migrants and students from all over India and abroad. The growth in the city is peripheral and the driving forces
31

for this growth are mainly the development of its IT industry as well as the economic boom in the automobile sector, which forms a major portion of the industries in and around Pune. The peripheral development has resulted in growth of the residential real estate space as well as the infrastructure and other facilities requisite for sustainable urbanisation. Pune is also ranked as a Gamma- Global City. Pune is popularly nicknamed as Queen of Deccan, Pensioners Paradise and Cultural Capital of Maharashtra, Cyber City etc. owing to its location, pleasant climate, historical importance vibrant culture and presence of IT-ITeS centres

Population in Millions

2.49 1991

4%

3.76 2001

4%

5.05 2011

3%

Population

Average Growth in population.

32

Fast Facts
Area (square kilometres): 15,643

Population: 5.05 million

Population growth rate: 30.34% compared to population as per 2001

Density (per square kilometres): 603

Sex ratio (females per 1000 males): 910

Literacy rate: 87.19%

Per capita income- Pune city (Source: Times of India): Rs 1.27 lakh (2010-11)

33

6.1 PUNE REAL ESTATE MARKET OVERVIEW

Pune is divided into five broad zones: Central, North, West, South, and East.
Zone North Major Residential Destination Pimpri, Chinchwad, Nigdi, Moshi, Dighi Central Bund Garden Road, Koregaon Park, Deccan, Model Colony, Kothrud, Swargate South Warje, Katraj, Kondhwa, NIBM Road, Undri

DEVELOPMENT OF

East

Kalyani Nagar, Yerwada, Viman Nagar, Kharadi, Wagholi Road, Hadapsar

HINJEWADI AS
AN IT/ITES DESTINATION HAS LED TO AN UNPRECEDENTED GROWTH OF THE WESTERN PART
West

Aundh, Baner, Pashan, Bavdhan, Wakad, Hinjewadi, Ravet

North Pune.
Major locations: Chinchwad, Akurdi, Pradhikaran, Talegaon, Chakan, and Ravet.

North Pune is primarily an industrial area with various Auto & Auto Ancillary and Engineering industries located here. The twin towns of Pimpri and Chinchwad are host to some of Indias leading auto companies manufacturing plants
34

such as Bajaj auto, Tata Motors, Force Motors and Daimler Chrysler. Additionally, engineering majors like Thermax, Forbes-Marshall, ThyssenKrupp and Alfa Laval also have their manufacturing base here. North Pune is a self-sufficient zone with the residential market thriving on the employment generated by the manufacturing sector. Pimpri, Chinchwad, Nigdi and Moshi are some of the prominent residential destinations here. North Pune is witnessing a tremendous amount of residential development activity. The area is coming up with many residential projects. Earlier Pimpri Chinchwad was perceived mainly as an industrial hub, however in recent times, the scenario is fast changing with residential development picking up. The state government's approval for building 100 metre tall buildings within Pimpri Chinchwad further boosted the real estate scenario in this region.

Kalptaru Properties, a major name in Mumbai real estate space has entered North Pune with their project, Kalptaru estate. Other major developers in this region include Nyati, Kolte Patil, Lunkad Realties and Goel Ganga among others.

Central Pune Major locations: Apte Road, Bhosle Nagar, Deccan, Model Colony, Prabhat Road, and Shivajinagar. It is the Commercial heart of the city with various corporate offices located in the Central Business District (CBD) area of Bund Garden, M.G.Road, Deccan and Shivaji Nagar. Good physical and social infrastructure, presence of organized retail, excellent connectivity with various parts of the city and limited availability of vacant land have ensured the highest property prices in this part of the city. Destinations such as, Model colony and Kothrud are some of the primary residential areas here.

35

South Pune

Major locations: Ambegaon, Katraj, Kondhwa, Parvati, Salisbury Park, Sinhagad Road, Mohammadwadi, NIBM, and Warje South Pune has emerged as a cheaper alternate residential zone compared to Central Pune. People referring to reside in proximity to the city centre but unable to afford a house there, favour these locations. Absence of any significant employment opportunity has restricted the growth of this zone as compared to other zones. However, South Pune is coming up with many residential projects and has become a hot destination for property buyers in Pune. It has resulted in appreciation of property rates in this part of Pune. Ambegaon has undergone a total makeover in the last few years and has acquired a new facet. Sinhagad is coming up with some good residential projects. Magarpatta has proposed a 700 acre township called Nanded City at Sinhagad Road. Mukund Nagar has also developed very fast in the last 3-4 years. Kondhwa has evolved as an important residential area in recent past. While the area towards Katraj is developing as a low cost housing destination with budget factor weighing in more here; the area towards Wanowrie & NIBM is coming up as a preferred location for premium housing. East Pune Major locations: Boat Club, Hadapsar, Kalyani Nagar, Kharadi, Koregaon Park, Wagholi, and Viman Nagar Large number of IT/ITeS offices, robust physical and social infrastructure, established organized retail market, presence of the Pune airport and proximity to the city centre have resulted in East Pune emerging as the most preferred residential zone in the last 10 years. Kalyani nagar is said to be one of the most sought-after addresses in the city. Projects like Magarpatta City have changed the face of the area. Good infrastructure and connectivity with other parts of the city is another plus point.

36

Hadapsar & Kharadi have come up as a preferred location for the IT/ITES sector. These locations serve not only as a hub for IT activities but also are preferred residential destinations promoting the walk to work culture which is fast becoming popular. East Pune consists of various townships as well such as Magarpatta City, Amanora Park Town among others which not only provides the buyer with homes with all builtin facilities but also include schools, college, hospital, restaurants and sports complexes within the township

Sustainable Township in Pune

Magarpatta The spatial dimensions of urban problems underscore the need for developing sustainable cities and townships, which have the requisite resources and infrastructure to manage the unprecedented increase in their population. Witnessing the need to develop sustainable cities capable of providing adequate and sustainable human settlements and services to support the rapid pace of urbanisation in and near Pune, the
37

concept of Magarpatta City was proposed in 1993-94. The well-developed residentialcum-industrial settlement, located on Pune-Solapur Highway, was created with the intent to address the rising concern of land availability with the policy of sustainable development. The township was named after the majority of farmer families in the area that had the family name Magar, while the affix patta denotes a patch of land. Magarpatta City comprises of 400-acres of Integrated Township with spaces for residential, commercial and SEZ development. This satellite township of Pune is home to a number of leading IT/ITES companies including EDS, Mphasis, Accenture, Patni, among others. As the pressures on urbanisation increased in the area, the farming community decided to pool its land and form their own development company, Magarpatta Township Development and Construction Company Limited.

The shareholders of the corporate body were the resident farmers of the area, whose shareholding pattern is as per the proportion to their land holding. Magarpatta Township Development and Construction Company Limited undertook the development of the area with the intent of fulfilling five key objectives: good living standards; a clean and sustainable environment; state-of-the-art working conditions; modern educational infrastructure; and reliable security. The master planning and architectural development of the erstwhile village of Hadapsar, for developing Magarpatta City was undertaken by Associated Space Designers Private Limited. In order to ensure that the networked society achieved the key objectives, the farming community created an extensive green cover in the area with 25,000 trees and lawns spread over 25 lakh square feet. Besides, the community also undertook a slew of other environment-friendly initiatives including the installation of solar water heating system in every residential complex in Magarpatta, using bricks and construction material made with fly ash, constructing green buildings, preventing garbage dump by deploying vermin-culture and bio-compost, etc.

38

Lavasa

Given the enormity and dynamism of the challenges facing the rapid pace urbanisation in India, the government is leaving no stone unturned in applying innovative solutions for achieving sustainable urban growth including encouraging private sector participation in such development activities. Envisaged as independent Indias first hill city, Lavasa is a recent example of private sector participation in building cities compliant with the principles of ecological sustainable environment and urbanisation. The master plan of Lavasa for creating five new towns spread across the seven hills of the Mose Valley in Maharashtra was conceived by internationally known design consultants HOK. The master plan for developing the sprawling township has won three global awards including the Award of Excellence from the highly revered Congress of New Urbanism. The Lavasa project is being developed by the Indian infrastructure major HCC (Hindustan Construction Company). The Lavasa City Planning standards are being dictated by the ideas of the green compact city, which ensures the deployment of several green practices including green roofs, bioswales, reforestation, rainwater harvesting, utilisation of environment-friendly construction materials, and many more.

39

West Pune Major locations: Aundh, Balewadi, Baner, Bavdhan, Hinjewadi, Kothrud, Pashan, Pimple- Saudagar, and Wakad Kothrud is considered to be one of the most preferred residential areas in Pune. The area has developed tremendously as compared to other parts of Pune. Attracted by this pace, developers are constructing complexes with the best of amenities. Being the hottest destination for various categories of the society, Kothrud has attracted many builders for carrying out major projects in the area. Top builders from the city are coming up with residential areas here. Good infrastructure has resulted in prices showing a remarkable increase in real estate prices. Aundh is also among the most upmarket locations in Pune, characterized with good infrastructure and very popular among IT professional from Hinjewadi. Baner, on the other hand, has good proximity to Mumbai-Pune Expressway and is the next most preferred destination for IT professionals which has attracted many big builders. South Pune also consists of some townships such as Megapolis and Blue Ridge which provides best-in-class amenities. However, the emergence of Hinjewadi is West Pune as an alternate IT/ITeS destination has been giving a tough competition to the offices located here. A lot of blue chip IT/ITeS companies prefer Hinjewadi over East Pune due to the availability of vast vacant land on which built-to-suit offices can be constructed for captive use. Although East Pune continues to attract small and mid-sized IT/ITeS companies, most of the larger players are setting up companies in West Pune.

40

6.2 RESIDENTIAL LAUNCH TREND IN PUNE.

Residential real estate industry in Pune has witnessed stupendous growth in the past few years owing to the following reasons: Increase in business opportunities Increase in number of immigrants Ample job opportunities in service sectors Growing income levels Increased affordability With the increase in citys population driven by the IT boom resulting in a large migrant population shifting base to the city, there has been a considerable residential activity in the region in the last few years. IT zones in the city are witnessing fast development with a string of new and contemporary residential complexes on the anvil. These comprise of Kharadi, Hinjewadi, Nagar road, Vimannagar, Kalyaninagar, Hadapsar, Aundh, Baner, Bavdhan, and Pimpri Chinchwad. The demand for residential units in Pune is driven primarily by the end-user segment. Even during the economic slowdown, the decline in capital values in Pune was on the lower side as compared to most of the other major cities. Between 2009 and 2011, capital value in Pune posted CAGR of 14%, next only to Mumbai, which grew by 19% Compound Annual Growth Rate (CAGR) during the same period. The fact that during the brief recovery period of 2012, Pune did not see the kind of run-up in capital values that was evident in Mumbai actually helped affordability levels and demand conditions to remain relatively better. As far as increase in capital values is concerned, Pune is expected to grow at about 8% year-on-year during 2012 to 2013 according to CRISIL.

41

Real estate developers see considerable growth opportunities in the residential segment as the annual requirement of houses in Pune is estimated to remain in the range of 45,000-55,000 per year over the next couple of years. Its a win-win situation for buyers also as real estate prices are expected to remain firm with low vacancy levels and steady absorption trends. Buyers have the widest choice in Pune because of the large number of projects popping up all over Hinjewadi, Wakad, Pimple Nilakh, Pimple Saudagar, Aundh and Balewadi. The growth in demand for residential units in Pune can be attributed to rapidly growing city population (both migratory & local), coupled with improvement in economic environment with stimulate growth of both IT and manufacturing sectors in this city. The launch of new projects is in fact helping to keep real estate prices competitive and thus affordable. The residential market is moving briskly and both high-end and economy segments within the residential sector are doing well.

As Pune boasts a good number of residential projects in various parts of city, some of the places developed into townships for instance Magarpatta City, Blue-ridge, Nanded city, Megapolis and Amanora Park have become destinations in themselves. Townships -a larger development with built-in amenities and facilities- offering a better living standard are luring a large number of residential buyers from all around. Going forward, a strong underlying demand would continue to aid an improvement in absorption levels in Pune. The Pune residential market is divided into five major markets namely Central, North, West, South and East Pune. All these zones have varied demands for residential real estate
The prices for homes in Pune city moved up by an average of 12%. Average appreciation in 2013 will be between 12-15% across the city. Hinjewadi, Kondhwa and Undri contributed almost 40% of the total sales in 2012.

There was a reduction in number of new launches in 2012, but supply increased in the midbudget segment (Rs. 50 lakh to Rs. 1 Cr.) and the luxury segment (Rs. 1 Cr. and above)

42

across the city. This trend will continue in 2013. 2012 also saw an increasing supply of units in the super luxury segment (Rs. 4 Cr. and above), predominantly in the Eastern corridor (Boat Club Road, Koregaon Park, Kalyaninagar and Vimannagar).

The Pune residential real estate market has seen an average appreciation of 15 per cent during 2012, according to the 2012 Pune Residential Real Estate Report released by Gera Developments. The report based on field research conducted over the past year indicates that as of December 2012, there were 1,882 residential projects in Pune under construction or with ready-to-sell stock. The gross supply during the year was 2, 14,115 spread over 1,882 projects, of which 79.33 per cent was sold. The total unsold stock stood at 44,251 units. Of the unsold stock, 58 per cent are below 1000 sq. ft. in size. The 1,000-2,000 sq. ft. segment has seen a drop in supply. An interesting insight is that the supply of homes above Rs 1Cr. Stood at 2,719 units and the segment between 75 lakh and one Cr. had 2,191 apartments. This means, 10% of the total supply is in the high-end segment an indication of the push towards premium homes. Aundh has seen the highest price gain of 94.17 per cent in the last two years, while Ghorpadi has seen the lowest gain of 13.68 per cent in the same period. Wagholi had the highest number of new residential units launched (4,183), followed by Undri (2,964) both in east Pune, while Talegaon and its neighbouring areas had 2,219 new units launched, making this the highest in west Pune. The highest increase in the land rates over the last two years were seen in Undri (56.10 per cent), Kharadi (37.66 per cent) and Baner (36.51 per cent).

43

Residential real estate prices are expected to increase by 13 to 17 per cent in 2013, with a bias towards the higher side due to the expected reduction of home loan interest rates and pro-reform Budget stimulus, the report said. Source: http://www.thehindubusinessline.com/news/states/pune-real-estate-marketsees-average-appreciation-of-15-in-2012/article4418019.ece

Launches
45000 42637 40000 35000 30000 25000 20433 20000 15000 10000 5000 0 2007 2008 2009 2010 2011 2012 24866 40452 38809

33104

44

6.3 GROWTH DRIVERS

Auto Components Manufacturing Industries Cosmopolitan City Culture Growth Factors IT Hub Fast Developing Infrastructure Presence of Leading educational Instutions Close proximity to Mumbai

45

Growth drivers There are several growth drivers that have made Pune the seventh largest industrial hub of the country. Presence of various industries and fast-developing infrastructure have made it a favourable destination for commercial activities. Further, it has significant opportunities to emerge as a key player in specific sectors if provided focused strategic planning. The major growth drivers that have enabled Pune to emerge as a leading real estate destination are:

1. Information technology hub The IT, BPO and KPO industries have emerged as few of the most important growth drivers for Punes economy. Many IT Parks have sprung up in the city to keep pace with the growth in the tech-enabled industry and to encourage new IT companies to set up their base in the cit y. Punes skyline is increasingly getting decorated with several software giants both national as well as multinational. Accenture, Infosys, Capgemini, Persistent Systems, Geometric Ltd., 3dPLM Software Solutions Ltd., Symphony Services, Wipro, TCS, Cognizant, Symantec, Amdocs, Tech Mahindra, Syntel, Fujitsu, L&T InfoTech, Zensar, Atos, Cybage, IBM Global, Sybase, Allscripts and Crest Premedia Solutions Ltd.

2. Presence of leading education institutes Pune is a leading educational hub with 150+ colleges and institutes that offer courses in a variety of subjects. It also houses several universities including the University of Pune which is one of the oldest universities in Maharashtra. Besides, Pune also has more than 260 affiliated educational institutes and colleges from all parts of Maharashtra. University of Pune, Deccan Education Society, Symbiosis International University, ILS Law College, Armed Forces Medical College (AFMC) and Byramjee Jeejeebhoy Medical College, Bharti Vidyapeeth, Tilak Maharashtra University, IGNOU, etc

46

3. Auto and auto components The influx of auto and auto components manufacturing industries has played a major role in the emergence of Pune to a mini metro bustling with industrial activity. On the auto and auto components manufacturing front, its emergence as a renowned centre for the auto industry was facilitated with the establishment of manufacturing units of Tata Motors and Bajaj Auto in the 1950s and 1960s. The influx of key players in the automobile sector provided the requisite fillip to the proliferation of a host of auto ancillaries companies. Today, Pune boasts a number of auto components companies ranging from micro, small and medium scale units to the largest forgings company in the world Bharat Forge. The arrival of the global players such as Mercedes-Benz and Fiat have further helped the city in fostering its stance on the Indian, as well as the global auto industry chart. Tata Motors, Kinetic Engineering, Mahindra & Mahindra, Bharat Forge, Mercedes-Benz, Volkswagen, Piaggio, Skoda, General Motors, Fiat, Bosch Chassis, John Deere, etc.

4. Manufacturing units Punes skyline speaks a lot about its identity as an emerging industrial metro and manufacturing hub. In the past few years, Pune has emerged as one of the major business centres in Maharashtra. Today, it serves as a base for various large and small units operating in sectors such as engineering, IT, pharmaceuticals, machine tools, chemicals, electrical and electronics, instrumentation and control, iron and steel, castings and forgings, and food processing. With the development of large industrial areas within a radius of 50 kilometres, having Pune as the Nucleus, the region has reinforced its identity as an important destination in Indias industrial story. Cummins India Ltd, Thermax Ltd, Honeywell Automation India, Whirlpool India Ltd, Lupin Labs, Coca Cola, LG, Sandvik

47

Asia, Greaves India, Frito Lay, Alfa Laval, Eaton Technologies, Suzlon, among others.

5. Cosmopolitan city culture Pune is said to be the cultural capital of Maharashtra. Punes culture reflects a blend of traditions with modernism. It encompasses both the traditional Maharashtrian lifestyle that is prevalent in the heart of the city, as well as a modern, progressive outlook resulting from its being a hub for education and industrial activity in the country. People from multiple religions and speaking different regional languages reside here. The city is known for hosting cultural activities in music, spirituality, theatre, sports, and literature, thus attracting people from different religions and cultures. Due to a large student population, Pune also hosts many youth festivals. 6. Proximity to Mumbai With the construction of the six lane Mumbai-Pune Expressway, Pune is now less than three hours drive from Mumbai. The six-lane, 95-kilometres Mumbai-Pune Expressway has certainly been a concrete milestone in reducing the distance between the two cities. Certain restrictions imposed by the state government on industrial expansions in Mumbai have also been one of the key drivers for rapid industrialisation here. Punes proximity to Mumbai, Indias commercial centre having a seaport as well as an international airport, makes it a favourable destination for commercial activities and has led to several multinational companies setting up their base in the area.

7. Fast developing infrastructure Pune's infrastructure is developing with a phenomenal pace with a strong support from the State. Pune is one of the most advanced, industrialised, and popular cities in the country and construction of residential and commercial complexes,
48

schools, and college campuses is taking place rapidly on a wide and fast scale in the city. The Expressway that connects Pune with Mumbai provides greater connectivity between the two cities. The city is also well-connected with the rest of the country by a strong network of roads, railways and airways. The proposed metro project will further enhance the interconnectivity of the city as well its connectivity with the surrounding metropolitan areas. The project is expected to be commissioned by 2013.

49

6.4 INFRASTRUCTURE DEVELOPMENT

Existing Arterial Road Network_
Connectivity Old MumbaiPune Highway MumbaiPune Bypass Road(NH-4) Connects Katraj in the South Pune with Mumbai-Pune expressway and Pimpri Chinchwad in the North Provides seamless connectivity with Hinjewadi in west, Mumbai-Pune expressway in North and PuneBangalore Highway in the south Pune Nashik Highway (NH-50) Starts at Kasarwadi towards Nashik in North Via Chakan Connects North Pune markets like Bhosari and Moshi with the city center Pune Solapur Highway (NH-9) Starts from Camp in the city center towards Solapur in the East Provides easy connectivity with Hadapsar in East Pune from the city Center Starts at Shivaji Nagar towards Mumbai via Pimpri Chinchwad Description A vital road connecting Pimpri Chinchwad with Central Pune

Upcoming Arterial Road Network

Connectivity Description Current Status Expected Completion Outer Ring Road 1 Theur Phata (Nh-9) Wagholi Chimbli (NH-50) Direct Connectivity between NH-9 in east Pune and NH-50 in North Pune Outer Ring Road 2 Chimbli Phata (Nh50) NH-4 Pirangut Easy access between North and West Pune Feasibility study and preparation of a detailed project report Feasibility study and preparation 2017-2018 2017-2018

50

of a detailed project report Outer Ring Road 3 Pirangut-SinhagadPune-Bangalore Highway (NH-4) Will connect West Pune with Sinhagad and Pune-Bangalore highway in South Pune Outer Ring Road 4 Katraj (NH-4)- Theur Phata (NH-9) Direct Connectivity for NH-4 in South and NH-9 in East Pune Feasibility study and preparation of a detailed project report Feasibility study and preparation of a detailed project report Post 2018 Post 2018

Upcoming Suburban Rail Network

Connectivity Description Current Status Expected Completion

Pune Metro Rail Corridor 1

Ranwadi-Pune StationWanaz

Will connect heavy traffic route between East and West Pune

Undergoing detailed technical feasibility study

2017-18

Pune Metro Rail Corridor 2

PimpriChinchwadShivaji NagarSwargate

Will enhance connectivity between North and South Pune

Approval Stage

Post 2018

51

6.5 RESIDENTIAL DEMAND-SUPPLY ANALYSIS OF PUNE

Unsold Units

9000 8000 7000 6000 8090.4

[SIDEBAR TITLE]

5000 5045.17 4000 3000 2000 1000 0 2007 2008 2009 2010 2011 1838.97 3410.96 3310.4

5719.18

33% and 28% of the

under construction units are located in West and East Pune Respectively

2012

Development of Hinjewadi as an IT/ITeS destination has led to an unprecedented growth of the western part of the city in the last ten years. Residential locations close to Hinjewadi like Pashan, Baner, and Wakad have immensely benefited from the large number of jobs created here. Availability of vacant lands at affordable prices and excellent road connectivity with the city center has led to the rapid development of this zone

52

Since 2007 city has witnessed a launch of 200.301 units of which 154,874 have been absorbed till Q3 of 2012.

53

7 PREFERRED ZONE IN PUNE

Pune residential Market has historically been an end-user driver market which has ensured minimum volatility in price. However, 2007 onwards investor participation has witnessed an increasing trend with local investors as well as those from Mumbai buying properties in the peripheral areas. This is despite the fact that most of the developers discourage investors participation by restricting re-sale before

RE-SALE
BEFORE POSSESSION IS NOT ALLOWED IN MOST OF THE PROJECTS

possession. Employment growth and infrastructure development will be the primary drivers of the real estate market in Pune in the coming years.

THE ATTRACTIVENESS OF

However, the impact of infrastructure development will be comparatively low, as most of the upcoming infrastructure projects are still at a very nascent stage and will not be operational before 2018. North Pune, where majority of the existing manufacturing plants are located, will benefit from the growth of Auto & Auto Ancillary sector. However, impact of this would be as no new units are being set up because of high cost of vacant land. The Attractiveness of Pimpri-Chinchwad as a manufacturing hub is fading out. Most of the new manufacturing units are being set up at
54

PIMPRI CHINCHWAD
AS A MANUFACTURING HUB IS FADING OUT, WITH MANY COMPANIES SHIFTING THEIR UNITS TO ALTERNATE CHEAPER LOCATIONS

Chakan and Ranjangaon which are 32km and 50km away from the city center respectively. Hence, no significant benefit of incremental employment will be felt on North Pune. East and West Pune will accrue the maximum benefit of incremental employment in Pune, as more than three-fourth of the existing office space stock and 95% of the upcoming stock will be located here. However, within these two zones West Pune will have the majority of the upcoming office space. While 16.8 mn.sq.ft. Of incremental office stock will be added to the West Zone, the East will add only 9 mn.sq.ft. In addition to these offices are spread out across different destinations such as Hadapsar, Kharadi, Kalyani Nagar, Magarpatta city and Nagar Road. This distributes the demand for residential space evenly across these destinations, thereby reducing the preference for any single location. In contrast to this, more than 80% of the location in West Pune are located in Hinjewadi. This increases the importance of the destinations that are located in close proximity to Hinjewadi. South Pune will not witness any significant gain in the residential market, as it is primarily dependent on East and West Pune where most of the employment hubs are located. Additionally, the prices here are equivalent to most of the emerging destinations of East and West Pune leaving very little room for further appreciation. Similar is the case with Western Pune.

55

7.1 DESTINATION HINJEWADI

Maharashtra governments push to IT/ITeS sector by setting up the Rajiv Gandhi InfoTech Park in Hinjewadi has changed the face of the West Pune. Currently phase 1, 2 and 3 are operational with IT giants like Infosys, Wipro, TCS, Tech Mahindra and Cognizant present here. Apart from this, various companies operating out of DLF, Akruti IT SEZ, Blueridge SEZ, Embassy Techzone and Ascendas International Tech Park which together account for over 5 mn.sq.ft. Of office stock. Plans for further expansion of Phase 4 and 5 are underway and land acquisition is already process. Hinjewadi is set to become one of the largest office space hubs in India, which is going to benefit the adjoining residential markets.

Residential Project

Project Launches in West Pune.

18,000.00 16,000.00 14,000.00 12,000.00 10,000.00 8,000.00 6,000.00 4,000.00 2,000.00 2007 2008 2009 2010 2011 2012 5,865.00 10,513.00 16,710.00 14,947.00 13,850.00 11150

Launch Trend in West Pune

Preference of employees of staying close to their work place and affordable pricing as compared to Central Pune will drive the demand for housing in this zone. Destination along the route to Hinjewadi such as Baner, Pashan, Bavdhan and Wakad have already

56

emerged as preferred residential locations for employee working here. Going forward, destination located within Hinjewadi and along Mumbai-Pune Bypass road will also witness similar phenomena. From 2007 West Pune has witnessed launch of 73,035 units of which 57,150 units have been sold only 22% remain unsold. Unsold units percentage have increased in the past 2 years, hence only 41 new projects consisting of 5,655 units have been launched in 2012. Going forward, expectations are such that Hinjewadi, Wakad, Tathawade and Ravet to witness maximum amount of price appreciation in Punes residential market. While Hinjewadi is located in Rajiv Gandhi InfoTech Park, three others are located on Mumbai-Pune bypass road. Primary Reason in brief for these four destinations to outperform others in Pune over the next five years are: Pune will witness an incremental demand of 26.7 Mn.sq.ft. Office space over the next five years, 66% of which will be in West Pune. Unlike East Pune, 80% of offices are located in Hinjewadi so that increases the demand of residential markets close to the proximity of Hinjewadi. Proximity to workplace has gained paramount importance while buying a flat.

Additionally prices in these destinations are still at a significant discount compared to nearby locations of Baner, Balewadi, Pashan and Bavdhan. This discount will narrow in the coming five years.

57

Price Forecast
12000

11200 10000

8000 7800 7800

6000

4000 3950

2000

0 2012 2017E

58

7.2 DESTINATION WAKAD

Till a few years back, Wakad was a non-descript place. However, proximity to Rajiv Gandhi InfoTech Park in Hinjewadi has led to many IT/ITeS professionals preferring to reside here as the travel time to work is hardly 10 minutes by road. Additionally, it is well connected with

From 2007 till Q3 of 2012, a total of 15,570 Units has been launched of which 12,864 Units have been Absorbed in Wakad Forecast is that prices in Wakad will Increase by 91% in the coming 5 years

nearby locations such as Baner, Aundh, Pashan and Bavdhan. Despite these reasons, prices in Wakad have been historically at a discount as compared to nearby locations. Availability of vast tracks of vacant land attracted the attention of many developers and led to the launch of more than 100 projects in Wakad since 2007. From 2007 till Q3 2012, a total of 15,570 units have been launched of which 12,864 units have been absorbed. More than 50% of the total units have been absorbed during 2007 and 2008. Post 2008, the absorption rate has considerably reduced due to slowdown in the IT/ITeS sector. Currently 17% of the total units remain unsold. Going forward we expect the absorption rate to remain unhealthy, as a growing number of IT/ITeS have preferred Hinjewadi for setting up operations.

59

Residential Launch Trend in Wakad

Launches
4500 4000 3500 3000 2500 2000 1500 1495 1000 500 0 2007 2008 2009 2010 2011 2012 1106 3077 2576 3081 4234

Price Forecast
Price Forecast
12000 10000 8000 7800 6000 4000 3950 2000 0 2012 2017E 7800 11200

60

7.3 DESTINATION TATHAWADE

TATHAWADE CAN BE CONSIDERED AS AN EXTENSION OF WAKAD WITH ONLY

Tathawade can be considered as extension of Wakad with only 4 Kms. separating them. It is located on the eastern side of the Mumbai-Pune bypass road and can be accessed from the Hinjewadi through the Dange Chowk. Tathawade has similar characteristics as Wakad except that the prices are 5% lower here.

4 KM SEPERATING
THEM

IN THE NEXT 4 YEARS PRICE TREND IN TATHAWADE WILL MIRROR THAT OF WAKAD AS THESE TWO MARKETS ARE

Tathawade is a relatively new residential market with most of the projects launched only during the last three years. Of the 1415 units launched since 2010. 1038 units have been absorbed till Q3 2012.

CLOSELY RELATED

61

Residential launch trend in Tathawade

Launches
1000 900 800 700 600 500 400 300 200 100 0 2010 2011 2012 305 234 876

Price Forecast
Price Forecast
12000 10000 8000 7800 6000 4000 3950 2000 0 2012 2017E 7800 11200

62

7.4 DESTINATION RAVET

Ravet, which is further 5km. North of Tathawade and located on the eastern side of Mumbai-Pune Bypass Road is another destination that will benefit from the growth in employment in Hinjewadi. The destination has historically remained at discount as compared to Wakad and Tathawade, as it is located further in North of Hinjewadi. Residential activities in Ravet starter in post 2010

Forecast is that prices in Ravet will increase by coming

and a total of 1744 units has been launched since then. Since the destination is relatively new, the absorption rate has been slow and only 1216 units have been absorbed till date resulting in 30% of the total units remaining unsold. However, the absorption rate is expected to increase. In the future price trend of Ravet will mirror Wakad and Tathawade.

97% in the

63

Residential Launches in Ravet

Launches
800 700 600 500 400 300 200 100 0 2011 2012 2013 272 757 715

Price Forecast
Chart Title
12000 10000 8000 7800 6000 4000 3950 2000 0 Aundh 2012 2017E Ravet 7800 11200

64

7.5 DESTINATION UNDRI

A phenomenal housing demand is witnessed in Pune and it is growing by quantum leap every day. There is especially high demand for 2, 3 BHK & Multi-storey in Undri and investors are keen to invest in this part of Pune. Many leading developers like Goel Ganga Developers, Marvel Group, Tata Housing Development Company have come up with big projects, attracting a lot of buyer attention in this region. More than 3000 units have been delivered in 2010 and six projects in 2012 so far. The demand is seen especially high for 2 & 3 BHKs, with 60% of the demand for 2BHKs. The price bracket of these apartments range from
More than

3000 units

Rs. 3,300 Rs. 4,000 depending upon the builder reputation. Most of the investors in Undri are white collared and from upfront families who are looking to make a second home investment. Close proximity to corporate hubs like Phursungi

have been delivered in 2010

60%
2BHK

demand for

and Hadapsar has made Undri an ideal choice for all those who are working there. Also, the region is well connected to Pune-Solapur Highway (NH9), Mumbai-Bangalore Highway (NH4) & MG Road.

65

Located close to the Ring Road, which is under construction, the prospect of property buying is expected to increase doubly in the future. Undri offers good connectivity via all the mediums and extends well planned and developed social and educational infrastructure. However, the demand for projects are so high here and developers are finding it a bit hard to cater to all the requirements. There might be a shortage by 27% in the mid-end and developers are pushing to their level best to balance the demands.

66

8 QUESTIONNAIRE
1. What is the first name that comes to your mind when you think about a real estate company? ___________________________________________________________________ 2. What attributes do you associate with the brand? Choose Reliability Transparency On time Delivery Quality of construction 3. How did you form this opinion?

1)By coming in touch with the employees of the firm 2)Through advertisements 3)Through the association with the owners of the company 4)Word of mouth publicity 5)Product class 6)Celebrity/Person 7)Bought products 8)Friends recommendations
4. Have you ever purchase the product from this brand? Yes No

67

5. If yes, does the product satisfy all your needs? ___________________________________________________________________ 6. If no, then what changes are needed to be done? ___________________________________________________________________ 7. Do you base your buying classifications on the following, please rank from 1-5 Location Brand Price Quality Visit to site

8. Does the brand increase the acceptance of the product? Yes No

9. Have you visited the company website? Yes No

10. If yes, how useful is the website for? Knowing more about the product Knowing more about the company Knowing the price Does not help

68

9 DATA ANALYSIS AND INTERPRETATION

Q1. Which is the first company that comes to your mind when you think about a real estate company?

Which is the first company that comes to your mind when you think about real estate?
5 5 4 3 2 1 0 4 3 2 1 1 1 1 1 1 1 2 1 1 2 2 1 1 1 1 1 1 1 3 2 1 1 1 1 3 2 1 1 1 1

The brand DLF has the maximum recall i.e. 5, 2nd is DSK with 4 recalls and Aditya builders, KUL and, Paranjape have 3 recalls each. DLF being having the maximum recall this shows that brand recall does not affect the purchasing decision of the consumer.

ADITYA BUILDERS AMRAPALI BUILDERS CHHADA BUILDERS DARODE- JOG DB REALITY DHOOT DLF DSK GAUR ASSOCIATES GODREJ PROPERTIES GVK HIRANANDANI JAYCEE JINDAL KAKADE GRP KALPATARU KOLTE PATIL KUL KUMAR PROPERTIES L&T LAVASA MAITRI ASSOCIATES MAITRI BUILDERS - DOSTI MANTRI BUILDERS MARVEL PANCHSHIL PARANJAPE SCHEMES RAHEJAA RANE GROUP REDDY CONSTRUCTIONS, ROHAN BUILDERS RUNAL SUPERTECH VENKATESHWARA VGG GROUP

69

Q2.What attributes do you associate with the brand?

What attributes do you associate with the brand?

7% 2% 2% 2% 5% i always take it through my personal contact IPL Locality of schemes 36% On time delivery 46% Quality of construction Reliability Transparency

46 % people form an attribute that the brand they recalled is Reliable 36 % people form an attribute that the brand they recalled has quality of construction 7 % feel that the brand they recall maintains transparency 5 % form an attribute that the brand always delivers on time 2 % form an attribute because of IPL, Personal Contact and Locality of schemes. That means people prefer a brand which is Reliable, has quality of construction and maintains transparency. Reliability is the most vital factor for the consumers to buy a product from the builder, followed by quality of construction.

70

Q3. How did you form this opinion?

How did you form this opinion?

Bought products By coming in touch with the employees of the firm 18% 5% 9% 19% Friends recommendations Product class relatives have taken a flat 18% 11% seen it Through advertisements 2% 2% Through the association with the owners of the company Word of mouth publicity

16%

19 % form this attribute by recommendation made by friends 18 % by advertisements and word of mouth publicity 16 % by coming in association with the owners of the company 11 % by product class 9 % by coming in touch with the employees of the firm 5 % have bought the product and 2 % have seen it themselves and, relatives own a property with the builder

71

35% people form an attribute about a company by coming in touch with friends, word of mouth publicity and advertisements 27 % form an opinion by coming in association with the owners of the firm and product class Thus one can conclude that the Brand recall is based on personal recommendations, advertisements also have a significant role to play.

Q4. Have you ever purchased a product from this company?

Have you ever purchased a product from this company?

32 35 30 25 20 15 10 5 0 Yes No 23

57.4 % people havent purchased any product from the companies still they recall those brands. It is significant to note that almost 60% people have not actually purchased the product, but already have a Brand recall

72

Q5. Does this product satisfy all your requirements?

Does this product satisfy all your requirements?

80%

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 20%

20 % people are not satisfied with the products they have bought. It is also significant that those that have bought the products from a known brand are unsatisfied with the brand. Therefore of the 43% who buy the brand, 20% are dissatisfied with the Brand therefore the dissatisfaction rate is as high as 9% which is alarming.

73

Q7. Rank the following buying preferences on the scale of 1 5.

Chart Title

5 4 3 2 1 0 Location 165 brand 196 Price 190 Quality 202 Visit to Site 190 Series1

Location of the property is the first preference for buying, followed by price of the product, third is visit to site people prefer buying a property only after visiting the site, brand ranks 4th when it comes to buying preference and the last preference is quality. It is significant to note that the first preference is location. Therefore the advertising strategy should be endemic to that area in which the product us being sold. Perception of quality needs to improve since buyers seem to feel that they have no control over the quality since location and price are their preference.

74

Q8. Does the brand increase the acceptance of the product?

Does the Brand Increase the acceptance of the product?

91% 100% 80% 60% 40% 20% 0% Yes No 9%

91 % people agree that the presence of Brand increases the acceptance of that product I.e. most of the people are brand conscious.

75

Q9. Have you visited the company website?

Have you visited the comapny website?

61% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 39%

61 % people have not visited the company website. Most people visit the company website before purchasing their product.

76

Q10. What was the company website useful for?

What was the company website useful for?

40% 35% 30% 25% 20% 15% 10% 5% 0% Knowing more about Knowing more about Knowing more about the product the company the price Does not help 17% 19% 28% 36%

Company website is most useful to derive maximum information about the company, to know more about the product and pricing. Also many people feel that the company website is not at all useful. 19 % people think the company website is not useful at all 36% people think that website is more useful for knowing more about the company 45 % feel that it is useful for knowing more about the product and price.

77

10 RECOMMENDATION FOR ESTADO

Estado should focus on getting in more walk-ins as the maximum audience choose recommendations by friends and word of mouth publicity helped them to form an opinion about the company. Forming a Brand name is a long process and Estado should continue to focus on good locations, be reliable and maintain the good quality construction to be a successful brand over the years to come.

78

11 CONCLUSION
The conclusion of the report are as follows 1. Estado should focus of building reliability and maintain the quality of construction. 2. The company should focus on developing flat in the range of 25 40lakhs at good locations and maintain the same quality of construction. 3. On the basis of the Survey. I am of the firm belief that there is significant opportunity for Estado in establishing its brand as someone who provides excellent quality at a reasonable price in the preferred location 4. Estado therefore must focus on providing excellent quality at affordable price in the location they are in.

79