Académique Documents
Professionnel Documents
Culture Documents
on
SALES PROMOTION OF REAL ESTATE
MASTER OF BUSINESS
ADMINISTRATION
By
Alka bhati
(Roll No.: 1471770001)
External Supervisor
Internal Supervisor
Mrs.
FMG
Greater
ACKNOWLEDGEMENT
A dissertation projects is a golden opportunity for learning and self-development. I
consider myself very lucky and honored to have so many wonderful people lead me
through in completion of this project.
I express my deepest and most sincere thanks to my (faculty member) and all my teachers
of MBA, DEPARTMENT who provided me their valuable time and information and I
would like to express my gratitude to the teachers and the entire Institute for giving me
platform to have this wonderful opportunity and being able to get a glimpse of the
corporate word.
During the course of my project, I had the good fortune of being guided by superior who
with all his magnanimity supervised this project report through all its stages. I have
benefited a great deal from his incisive analyses and suggestions. I humbly acknowledge
his congeniality. The atmosphere of a leering organization that he has created along with
his peers with his student has not student has not only me but all so to others.
My Special thanks to all my friends for their unremitting help in numerous way, which
deserve adequate expression on this page.
I would also like to thank all the respondents of questionnaire for their cooperation and in
the end I would like to say that it was a great experience working in this project.
ALKA BHATI
MBA
Roll No. 1471770001
2
PREFACE
The successful completion of this project was a unique experience for me
become by Visiting many place and interacting various person, I achieved a
better knowledge about Sales Promotion in Real Estate Marketing industry.
The experience which I gained by doing this projects is being submitted
which content detailed analysis of the research under taken by me.
The research provides as opportunity to the student to devote his/her skill
knowledge and competencies required during the technical session. The
research is on the topic
Sales Promotion in Real Estate marketing industry
DECLARATION
The research project report entitled Sales Promotion in Real Estate marketing
industry. under the guidance of Mr. V.K. Chhabra (Senior General Manager,
Marketing & Sales), AMRAPALI., is the original work done by me. This is the property
of the institute and use of this report without prior permission of the institute will be
considered illegal and actionable.
Industry Guide
Faculty Guide
Date: _____________________
Place: ____________________
TABLE OF CONTENT
PAGE NO.
CHAPTER -1
EXECUTIVE SUMMARY
CHAPTER -2
INTRODUCTIONS
10
14
CHAPTER -4
35
RESEARCH METHODOLOGY
1.)
2.)
3.)
4.)
5.)
6.)
RESEARCH DESIGN
SAMPLING DESING
SOURCES OF DATA
DATA COLLECTION TOOLS
METHOD OF DATA COLLECTION
TOOLS AND TECHNIQYES OF ANALYSIS OF DATA
CHAPTER -5CONCLUSIONS
72
CHAPTER -6
74
79
CHAPTER -8LIMITATIONS
82
84
CHAPTER -10
QUESTIONNAIRE
90
CHAPTER -11
BIBLIOGRAPHY
93
CHAPTER -1
EXECUTIVE SUMMRY
EXECUTIVE SUMMRY
The real estate industry today has changed so much that each sector needs special skills to
make it work efficiently. All over the world, prices are fluctuating. Global agencies monitor
trends in the top influential cities. With many foreign investments in India and NRIs
returning, the Indian property market watch is on the top most of every big agency.
Mumbai is the costliest city to live in Asia. To understand real estate marketing one
should at least have the minimum knowledge required to step into the complex industry.
Out there, plenty of smart operators are looking for suckers. They may not be dishonest but
will technically confuse you to pay higher price and outsmart you. Therefore, if you know
your onions and thedeep layers beyond the skins it helps to get the best.
The purchasing power of the new generation of Indians has increased. They are investing
in real estate in a big way- in terms of investment and assets. People haveacquired refined
tastes in housing needs and become professional in dealing with builders. Financial
companies and banks have given a boost to real estate marketing as well. To add to this the
6
government has allowed foreign investors also to test the market conditions here have
helped. Every area of real estate be it industrial, retail space, malls, office complexes,
residential colonies, hospitals, clinics and other healthcare units have a vast potentialfor
growth.
As more opportunities grow for people to work they also wish to invest in places close by
to live in. Builders or developers in various regions are now separately marketing each
space. Even home loan companies and banks are independently marketing the properties
they are giving loans. This helps them to guide their dedicated clientele and ensure the
marketing trends remain closely monitored for future development.
They generally have customer relationship executives who are assigned (usually area wise)
to assist customers in making decisions. They do have good knowledge, are professionals
on the job and customers do benefit if they are not very familiar with various technicalities.
Each company has its own marketing device and portfolio to attract Customers. Various
tieups with groups in India and overseas have taken place this year with increase in FDI.
MGF Developments based in New Delhi and Emmar Properties based in Dubai have joined
hands in the first quarter of 2006 for investments within the country. Nowadays most of
real estate focus is on shopping malls and residential complexes. In some areas down
south, the thrust is on IT parks, and corporate offices and resorts.
However, on the other side everyone or every other executive does not feel the real estate
sector in India is being well marketed or managed. Yes, there are some gray areas, which
need to be covered up. For instance, foreigners who wish to invest or firms who are
looking at Indian partners are feeling the crunch of bureaucracy and familial ways of
working. This obviously makes it difficult for them to do business. The potential is there
but it needs to be tapped wisely. A proper way is to have real estate marketing with the
right professionals. Everyone wants to cash on the business.
After one and a half years of gradual consolidation, real estate in India has fathomed its
own comfortable ground, and is poised at the right threshold to take a giant leap in years to
come. While a differential pace of strengthening is evident across sectors, geographies and
segments, several property market indicators point to the fact that the industry has indeed
bottomed out in the current cycle. The fears of a possible double dip recovery have given
way to beliefs in the sustained healthy levels, if not a rapid growth.
7
The experience thus gained in this slowdown is invaluable and will serve real estate
strategists for years to come. The various stakeholders in the entire supply chain the
material manufacturers, developers, property consultants, occupiers, investors and policy
makers, have all emerged stronger and primed than yesteryears. And, if we have taken our
lessons right, caution and diligence would be the keywords for the industry in the
medium term.
On one hand, the stakeholders cant afford to sway on the riding waves of healthy demand,
and lose the ground advantage that they have so painfully regained by adapting to the
rapidly changing business environment. And on the other, the emerging opportunities
should be targeted with an unmatched fervor of potential and pragmatism.
The year 2011 would usher a new decade of opportunities for Indian real estate, which will
be a test of sorts for its stakeholders between these two fringes of the fulcrum. And the
winners would be the ones who balance caution with diligence evaluating all the potential
opportunities with pragmatism.
IT/ITES and BFSI would continue to account for 60-70% of office demand
Launch of Ultra Low Cost (ULC) Housing by private developers Housing for
All
Sustainability to gain focus as the industry looks forward towards IGBC Green
Homes standards
Retailers would continue to expand beyond Tier I into Tier II and III cities
CHAPTER -2
INTRODUCTIONS
1. INTRODUTION OF ORGANIZATION
2. OBJECT OF STUDY
INTRODUTION OF ORGANIZATION
Amrapali Group was established by
MR. ANIL SHARMA in 2002 in Noida with50professionals & 150 supervisory-grade
employees
Amrapali is one of the fastest growing development firm from last 123 years, it is into the
business of the construction of LUXURIOUS RESIDENTIAL COMPLEX,
TOWNSHIPS, OFFICES, HOTELS AND RESORTS..
Amrapali Group providing all type of land in Delhi, Greater Noida, NCR, Noida. If you are
seeking to Amrapali sapphire Sale Real Estate, we offer all the support and services to
make it easy for you.
Greater Noida and Noida is involved in wide spectra of services in real estate dealing
related services and assure you to provide the best of all at competitive prices. We provide
services such as sale of residential and commercial properties .We are worked for last 12
year in real estate & construction.
Today real estate market in is growing at an amazing pace. Many people have started
relocating to the NCR area to enjoy better quality of life. Every other day there is new
project announced and many options are available to buy your dream home, suiting your
budget. You could buy a ready to move-in flat to meet your immediate needs or you could
invest in new projects launched or buy in resale of a project under construction.
10
PROJECTS
11
2. OBJECT OF STUDY
1
2.
Property Valuation
3.
4.
Home Loans
5.
6.
7.
8.
Sales Promotion
9.
12
CHAPTER -3
LITRATURE REVIEW
LITRATURE REVIEW
13
The real estate market in India has become so huge that to get every thing or anything
specific within one roof is easy and difficult at the same time. With the kind of commercial
and residential property available on rent/lease/ ownership one has to refer to portals or
good companies dealing in various listings. Generally typical real estate listing would
necessarily include the following heads:
Properties Area wise - Separate sections of residential and commercial nature.
Within this are included partnership, brokerage, requiring agents, and direct deals with
builders. The property rates of each area are usually determined every two three years
unless in a particular area shoots up due to construction or upcoming prestigious piece of
property (i.e. a five star hotel, IT corporate park, shopping mall or multiplex). In such areas
the rents and buying properties do increase because of job opportunities and close
residential facilities.
Property Valuation
Many old properties may not be in very good condition. But they still are valuable. Why?
Mostly because they can be refurbished or rebuilt entirely. This is why they usually fetch a
good price. But one cannot depend only on brokers or agents or property owners to
evaluate the land. Sometimes the owner is greedy and expects a bigger price, sometimes an
agent in between quotes a higher price so that it benefits him, sometimes the buyer may be
just rich and may not have rival bidders or competitors so quotes a fancy pricey according
to his choice.
But now the industry has attained a level of professionalism and valuers who have correct
knowledge and are impartial are used to assess the property. Even if it has to be handed
over from one brother to another the valuer needs to correctly assess the worth of the
property. Usually a lawyer does the valuation so that a stamp of legality can be given to the
property and no disputes rise thereafter. A known property valuer will charge a good
amount to the job.
Property Managers/ Property Brokers/ Property Agents etc
14
Dealing with one person who knows the entire property inside out is important. Usually
when an agent shows the property to a prospective client he knows the property manager
dealing with it. He normally deals on behalf of the owner.
He looks after the property and keeps in good shape till it is sold to the next owner.
Brokers and agents now all over India have associations. So certified ones and those
registered with the respective associations will definitely not cheat you when you are
buying property.
Even if there are disputes it can be challenged or sorted out through the right channels.
Real estate listings usually give area wise contacts of brokers and agents listed with them.
So even if one does not know one a portal provides the details.
Property Consultants and Designers
Now consultants are available for giving a better view of the industry in general. They are
aware of the rules, laws and regulations, which affect builders and buyers both. Each
consultant specializes in various kinds of property.
For example property consultant dealing with industrial properties knows what
environmental laws and rules about violating them. He can help the owners to be on the
right side of the law. Some consultants deal exclusively in townships, residential areas and
are aware of the rules that govern them. A good consultant will always be an asset for the
builder he works for.
Designers are usually required by architects or by individuals who need homes to be
designed. Some firms employ designers, some of them freelance or some do just
renovation work. Depending on the need they are listed too. They also deal with people
with knowledge of Vastu and FengShui-both applications are in vogue with clients.
15
A regular monitor or a property watch is kept for any changes of rates in any zones. Some
also feature overseas properties and help in getting information to get there. A real estate
listing becomes popular with every new additional thing that will eventually help the client.
16
The real estate market in India has become so huge that to get everything or anything
specific within one roof is easy and difficult at the same time. With the kind of commercial
and residential property available on rent/lease/ ownership one has to refer to portals or
good companies dealing in various listings. Generally typical real estate listing would
necessarily include the following heads:
Designers are usually required by architects or by individuals who need homes to be
designed. Some firms employ designers, some of them freelance or some do just
renovation work. Depending on the need they are listed too. They also deal with people
with knowledge of Vastu and FengShui-both applications are in vogue with clients.
Sales Promotion at different Level and different programme
One of the most difficult marketing decisions facing companies is how much to spend on
promotional John Wanamaker, the departmental - store magazine, said, "I know that half of
my advertising is wasted but I don't know which half."
Thus it is not surprising that industries and companies vary considerably in how much they
spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in
cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry,
a low and high spending companies can be found.How do companies decide on their
promotion budget? There are mainly four methods of this
Affordable Method:
Many companies set the promotion budget at what they think the company can afford. One
executive explained this method as follows : "Why, its simple. First I go upstairs to the
controller and how much they can afford to give us this year. He says a million and half.
Later, the boss comes to me and asks how much we should spend and I say Oh about a
million and half."
It is a method which is uncertain one and makes long term planning difficult.
17
18
Sales Promotion
Promotion is the final element in the marketing mix. After the nature of product is decided,
its price fixed and the methods of distribution decided, the manufactures has to take
effective steps in meeting the consumers in the markets. In the present consumer oriented
markets it is the duty of manufacturers to know what is required by the consumer. It is also
19
their duty to make the customers know where, when how and at what prices. The products
would be available.
Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity :
1. Mass impersonal selling methods (Advertising).
2. Face to face personal selling (Salesman ship).
3. Activities other than personal selling and advertising such as point of purchase display
(P.O.P.) show and exhibitions, demonstrations and other non securing selling efforts. This
form of activity is called Sales Promotion.
21
"Sales promotion means any steps that are taken for the purpose of obtaining or increasing
sales".
Acc. to W.Q. Kelly Opines:"Muddled misused misunderstood that is sales promotion Acc. to him the field of sales
promotion as a marketing activity is still vaguely defined and organized.
22
23
24
(ii) Store Demonstration:In the promises of the whole saler or the retailer the products sales personnel will conduct
special demonstration for the companies product. A personal demonstration is good to
introduce a new product at its peculiar advantage can be high lightened and the consumers
doubt clear. It can be used to restimulate an old product. A good demonstration with a great
dealer of action will draw heavy crowds in to the store and will attract attention to the
product.
(iii) Special Display and Shows:These are in seasonal in character but could be arranged in an elaborate manner and for all
the products of an company. Usually these are arranged along with trade fair and
exhibition. Besides effecting sales these shows impress the companys name generally on
the public.
2. Price-off-offer (Also known as bargain offer price packs):This offer is intended to stimulate the sales during a slump season. In this method the
customer is offered a reduction from the printed price list. It is also used when a substitute
for competing product enters the market.
Many experts on sales promotion fed that Off Schemes are among the weaker and less
desirable methods of promotion. These can be trade resentment particularly when the
retailer raises the price to retain his margin. Secondly that is not conductive to building up
brand loyalty. Consumers may simply shift to the products that offer this scheme.
3. Samples:In the hope of converting a prospect into a customer a sample (Some quantity of the
product) may be given. This helps the consumer to verify the real quality of the product.
Various pair manufacturing companies offer this method. For developing brand loyalty this
method is quite useful. Sampling is a fast method of demand creation because one knows
the result as soon as the consumer has had time to use the sample and buy the brand.
Disadvantage of Sampler:Offering sample in quit expensive. There is the cost of producing samples. The distribution
costs are also high. Sample have to be mailed to potential customers or to be distributed
through retail shops. There are also problems when the real product does not resemble the
sample supplied.
26
4. Money Refund Offer:An offer usually stated on the package is that manufacturers will return with in a stated
period part or all of the purchasers money if he is not completely satisfied with the
product.
5. Trading Stamps:A premium in the form of stamps is given by the sellers to consumers while selling goods.
The number and value of stamp that the buyer receives depends on the values of the
purchase. These stamps are redeemable through premium catalogues at the stamp
redemption centres.
6. Buy-Back Allowance:
This an allowance following a previous trade deal not offer a certain amount of money for
new purchases based on the quantity of purchases on the first trade deal. It extends the life
of a trade deal and helps to prevent part deal sales decline. It greatly strengthens the
buyers motivation to co-operate on the first deal.
7. Premium:There are various forms of premiums provided by the manufacturer as sales promotional
devices:(a) Coupons are supplied for effecting price reductions.
(b) Factory in pack premium these are popular in the case of Body food and Tin food items,
Spoons, Cups, Measuring, Glass etc. and such other items are packed with the product in
the box itself. Factory in pack premium are particularly goods for product meant for
27
children. The Bianca Toothpaste packs contain animal shape toys. These are very attractive
and quite popular among the children.
(c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. But when the buyers pays for
it he has to pay only a considerably low price for the premium. This is possible for the
manufacturer purchases the items in bulk at a premium and his cost per unit as is
substantially low.
Other Steps by Manufacturer for Promoting Sales
Dealers can be helps in different ways :1. Communicating Market News :Often this service is reciprocal the manufacturer may acquaint his dealer with the fact
relating to his production and prices while the dealer may familiarize him in return with the
information bearing on charges in the consumer's demand, their like and dislike complaints
and criticism, substitutes etc.
2. Inviting to Sales Conference and Convention:The gestures of regard and respect pave the way for better relation and co-operation.
3. Offering Reasonable Terms of Sale:Of all the forms of encouragement, the monetary incentive evokes immediate response.
Hence every producer must offer the most responsible terms of sale such as longer periods
of credit and higher rates of descants.
4. Supplying suitable packages and useful things.
5. By taking the return back.
6. By furnishing them with sales literature and display materials.
28
Aggressive Selling
Meaning:Goods are produced for market. Manufacturers have to make efforts to sell all they
produce. When the manufacturers uses various sales efforts to obtain increased sales
volume for his product it is called aggressive selling or offensive selling. The sales efforts
which a manufacturer makes to retain his customers i.e. to protect his already established
market against against his competitors is termed as defensive selling. In contrast to this
aggressive selling is concerned with the sales efforts made with the express objective of
selling more by expanding the market for the product of the selling firm.
Aggressive Selling and Defensive Selling :Aggressive selling is based on the answer to the question how much does the firm gain (in
term of sales with profit) by using this method defensive selling is based on consideration
as to how much the firm will lose if it does not use this method increase of sales can be
obtained from two sources:-
29
30
(a) Cash Allowance:A definite percentage of discountsis allowed on the purchase of given unit of a product.
(b) Extra Product:Instead of giving any cash allowance extra product is given with each unit of product
ordered. For instance if a box normally contains 20 Cakes of Soap, special box contains 25
cakes may be made and sold at the same price as that of the box of 20 cakes.
(c) Gifts :Various gifts are awarded in return for an order of a particular magnitude.
2. Consumer Promotion:Under consumer promotion method special incentives are offered to the consumers to buy
the firms product. The more prominent amongst such incentives are as following.
(a) Coupons:A coupon of a giving value is sent to the consumer. By presenting this coupon to the
retailer consumers can purchase a particular product mentioned on the coupon at a reduced
price. The retailer sells the products mentioned. In the coupon to such consumer
(consumers presenting the coupons) under and agreement with the manufacturer at a price
lower than the user retail price. Thus the consumer get the benefit of reduced price to the
extent of the value of the coupons.
(b) Self Liquidating Offers:Under this system, the firm offers an article at an attracting price if the consumer send a
given sum of money accompanied by a given number of box tops from the packages of a
particular product the benefit to the consumer is that he receives the articles at a bargain
price.
31
(c) Bargain Packs:Under this system a product is sold at a reduced price for a short period Bargain pack
method encourages new consumers to try the product. It is also helpful in obtaining large
displays in the shops.
(d) Sampling :The method involves giving the product or a small quantity of the product to a consumer
free with the hope that the customer will be favourable impressed with its actual use and
will eventually become a regular purchaser of the product.
A firm selling new product or an extensively improved product finds this methods useful.
Also a firm whose market is hold by competitors whose free sampling almost expensive.
The above mentioned methods may be reinforced by adopting.
(i)
(ii)
(iii)
(ii)
Instead of using wholesalers, the firm may develop its own sales force to call
directly on retailers.
(iii)
(iv)
(v)
(vi)
In fact, an ingenious sales manager can devise any number of incentives schemes for
promoting the sales volume.
33
CHAPTER -4
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Any activity done without an objective in a mind cannot turn faithful. An objective
provides a specific direction to an activity. Objectives may range from very general to very
specify , but they should be clear enough to point out with responsible accuracy what
34
researcher wants to achieve through the study and how it will be helpful to the decision
maker in solving the problem.
Each research study has its own specific purpose. It is like to discover to question through
the application of scientific procedure. But the main aim of our research to find out the
truth that is hidden and which has not been discovered as yet.
1).RESEARCH DESIGN
On the basis of theoretical study a research has many types. All of these are distributed on
the nature of research. Some of these are like
1. Descriptive and analytical
2. Qualitative and Quantitative
3. Conceptual and Empirical
4. Applied and Fundamental
5. One Time Research
Our research is based on descriptive, qualitative and Quantitative research.
Descriptive Research:-Descriptive research includes surveys and facts finding enquires of
different kinds. The major purpose of Descriptive research is description of the state of
affairs as it exists at present. Researcher has no control over the variables of this type of
research.
Qualitative Research: - In our research we need comparison between different stage and
different condition. So this based on all qualitative data in short, Qualitative research is
especially important in the behavioral science where the aim is to discover the underline
35
motives of human behavior. Though such research we can analyses various factors which
motivate to people to behave in particular manner or which make people like or dislike a
particular thing.
Quantitative Research:- Quantitative research is based on the measurement of quantity or
amount. It is applicable to phenomena that cab be expressed in terms of Quantity. So we
can use it in our research for collection of all the numerical data.
2).SAMPLING DESIGN:Sample Design is a definite plan for obtaining a sample from a given population. It refers
to the technique or the procedure the researcher would adopt in selecting items for the
sample
3).SOURCES OF DATA
TYPE OF DATA
A) PRIMARY DATA
B) SECONDRY DATA
A) PRIMARY DATA:a) questionnaire
b) Interview schedule
B) SECONDRY DATA:a) Historical data of Real Estate Marketing
b) Online Database
c) Journal
d) Internet
Marco-economic Overview
The Indian economy currently stands among the world's fourth largest growing
economy in terms of purchasing power parity and holds the distinction of being a key
contributor to Asia's balance of payment surplus. India's GDP is estimated to be the third
largest in the world by2020. India is also considered the second most attractive country in
the world for Foreign Direct Investment (FDI). Forex Reserves (excluding gold and SDRs)
stood at US$157.25 billion at the end of July 2006. India now holds the fifth largest stock
of reserves among the emerging market economies and the sixth largest in the world.
37
The performance of the country has been consistent and steady over the past three years
with an average annual growth rate of 8%. The growth trend is being led by positive
movements across sectors in agriculture, manufacturing and services.
38
In recent years, the broad based growth in services sector has been a principle driver of the
GDP growth. Business services (including Information Technology (IT) and IT Enabled
Services), communication services, financial services, hotels and restaurants and trade
(distribution) services are among the fastest growing service sectors. Indias share in the
world market for IT software and services (including BPO) increased from around 1.7% in
2003-04 to 2.3% in 2004-05 and an estimated 2.8% in 2005-06.
The proportion of manufacturing in the GDP has remained stable at around 25%,
however, the growth rate of manufacturing has increased over years, from 2.7% in 2001 to
9.0% in 2006 against the growth rate of 2.3 % and 9.8% in agriculture and services
respectively. Manufacturing Industries like textiles, automobiles, cement, steel, petro
chemicals,
Infrastructure (civil aviation, roads, and ports), electronics, beverages and tobacco
products have been the prime drivers in Indias Industrial growth.
39
40
The last few years have seen Indian market mature through regulatory reforms
(rationalization of stamp duties, reform of urban land ceilings ), improving products in
terms of quality and technology, changing tenant profile (MNCs, and respect for tenancy
laws), and improving management and maintenance models (enhanced product life-cycles
and sustained project / real estate yields). Although the initial real estate boom was
concentrated in places like Bangalore and the National Capital Region of Delhi (including
Gurgaon), more recently the geographical spread has widened. There has been a significant
shift in real estate market from metros to its suburbs and to tier II and tier III cities. Lease
rentals and occupancies have been picking up steadily and there is an increasing demand
for quality infrastructure across various segments of the real estate sector.
41
42
43
44
and services near Coimbatore in Tamil Nadu, Udupi in Karnataka and Vadodara in
Gujarat), Hindalco (aluminum SEZ at Sabblpur in Orissa), Genpact (IT SEZ at
Bhuvnashwar in Orissa, Jaipur in Rajasthan and Bhopal in Madhya Pradesh), Vedanta
Alumina ( aluminum SEZ at Orissa). Seeking the permission for SEZs are also a number of
realestate developers, including DLF, Ansals, Omaxe, Parsvnath, Shipra Estate and Sunny
Vista Realtors
45
Residential:
Accounting for more than 70% of the sector in terms of space, residential segment growth
is driven by urbanization and the migration of households up the income curve. According
to the National Council of Applied Economic Research estimates, the number
of urban households earning more than INR 500,000 (about US$12,000) should more than
double to 7.6m in 2006-10.
Commercial:
Rapid growth in IT/ITES services (manpower in the sector has doubled in the past three
years to 1.6m) is the main driver of Grade a commercial office space demand. Jones Lang
LaSalle, a property consultancy, estimates that the absorption of office space in the top
seven cities in India was 31.1m square feet in 2006.
46
Retail:
According to CRIS INFAC, the penetration of organized retail into the overall market will
increase from 3.5% in 2005 to 8% in 2010, there by driving the demand for mall space.
Hospitality:
According to CRISIL, the number of 5-star rooms is expected to grow by60% in the next
four years with foreign tourist arrivals growing at 10%CAGR
Change in legislation:
In many states, strict laws like the Urban Land Ceiling Act (which defines ceiling of
land holdings in urban areas) have been repealed or modified.
47
Consumer preferences:
Consumers are now willing to pay premium prices for better amenities and a good
brand. In response, most of the bigger developers are scaling up geographically, which
necessitates rigorous systems and processes
Even Indias leading conglomerates have taken up commercial space here. The state
administration has already shifted whole sale commodity markets to Navi Mumbai. So, you
have endorsements from different segments that Navi Mumbais commercial real estate is
much sought after, he says. Suresh Haware, MD, Haware Builders concurs.
Even at the nano end of the commercial real estate spectrum, demand is high, he
says. It is the small offices and shops segment that have witnessed the highest demand at
Haware Builders commercial projects in Navi Mumbai, he reveals.
Today, industrial units in Navi Mumbai are relocating to locations in Raigadh district
and commercial is the latest buzzword in Navi Mumbais real estate scenario, says Vijay
Gajra of the Gajra Group. Commercial options in Navi Mumbai span a huge price band.
Growth of the residential segment in Navi Mumbai, prior to that of the commercial
segment, actually works out in favor of the end-user today, as manpower resources are
easily available, he points out. Commercial real estate in Navi Mumbai comes at
competitive prices vis--vis other options in the Mumbai metropolitan region (MMR), with
the added advantage of being located in a well-planned city, adds Gajra.
IT/ ITeS SEZs and businesses that have anything to do with rail/road transport and
logistics or shipping, are proving to be the next big segment in Navi Mumbais commercial
spectrum, shares Mayur Shah, honorary secretary, MCHI. Ramneek Bakshi, principal of
global property consultants, LJ Hooker, points out that MNCs view India within the
parameters of the Brazil, Russia, India, China (BRIC) equation.
When they look at India as a business entity, Mumbai takes prime position. When they
start looking out for space, Navi Mumbai, which forms the third level of real estate pricing,
is attractive for MNCs looking to set up shop in the Mumbai region, he explains. At the
Norwegian consulate in Mumbai, George Mathew, honorary consul general, concurs, If
you look at real estate pricing trends in the MMR, Navi Mumbai fits the bill on many
counts. However, the clincher is the price efficiency and developed infrastructure that Navi
Mumbai provides, he concludes.
49
Appreciations
The hike in demand as well as supply and appreciation in capital values are
attracting good attention from overseas investors. The Mumbai real estate has become a
reflective of the high growth in Indian property market. There has been an increase in real
estate value across micro markets in Mumbai as well.
Mumbai is looked upon as one of the most organized and transparent property
market in India. With cash components and transactions shooting up in the last two years,
the city has gained much popularity among the investors, both domestic and international.
The investment market has been thriving with excellent returns going high over the past
few years. The real estate boom and an upsurge in development activities in major parts of
Mumbai have led to a rise in investment prospects in commercial and residential sector.
Known locations like Bandra-Kurla Complex (BKC) and Lower Parle have seen
appreciations in commercial spaces falling under the category of Grade A. The occupancy
levels in other preferable locations like And heri West and Nirman Point also increased in
the current yearand are believed to have marked the rise by 90-95%.Another mark
appreciation is in regard to commercial properties in Mumbai, and is prevailing in the city's
micro markets barring a few exceptions.
With an excellent accessibility across the globe, the city of dreams, Mumbai has
emerged as an ultimate destination for most people. As per property surveys, one can sell
any property and get a price which is fairly good. Within the real estate industry, it is
believed that such periods come in cycles and bring an apt time to cash upon.
What makes real estate in Mumbai so exciting are an ongoing demand and the
proposed projects that are to be executed in approaching years. Builders always have
special offers and attractive schemes in store for end consumers. Capital Values of quality
apartments, in well-maintained old buildings and upcoming projects, in South and South
Central Mumbai, have gone through the roof
Agency
Agency is that branch of the real estate business which engages the attention of the
greatest number of persons who are concerned with the business, and in that respect it is of
prime importance. It is divided into two parts, brokerage and management.
A broker is a person who for compensation, usually proportioned to the value of the
subject-matter, brings about transactions between principals. Brokerage has two divisions
according to the kinds of business which usually engage the attention of the broker. The
sales broker is a broker who devotes his time and attention to the bringing about of the sale
or exchange of real property. A loan broker is one who gives his attention to the obtaining
of loans upon the security of real property. One man may practice both branches of the
business, or a specialist may devote himself to either of these branches.
Management, the second branch of agency, is the operation of deriving income and
caring physically for real estate structures. It concerns itself not only with the deriving of
income, but with the keeping down of expenses and the care in making expenditures. It is
popularly known as "Agency."
51
VISION
Benchmarking our services in terms of People, Pace & Passion tobe the best in the
Industry.
MISSION
To
provide
requirements
reach
its
creative
of
our
optimal
solutions,
clients.
potential
by
To
customizing
encourage
combining
its
&
our
services
facilitate
diverse
to
our
strengths
suit
the
team
to
to
provide
They add value to your properties through their experience and expertise, with their
wide network of clients and contacts all over India and global arena. They assist everyone
in identifying opportunities and the right partners to compliment their capabilities.
Projects HandledLittle World Mall:
They had sole mandate to lease the mall which started in October2007in Kharghar.
Complete project was completed by them withgoodanchors and brands as listed below:
Aditya Birla more, Archies, Levis, Levis Signature, Max Lifestyle,Adlabs, The
Raymond Shop, Reid & Taylor, Welspun,Thomas Scott ,Connections,Koutons,Planet M,
52
The Mobile Store, Homes & Apparels, Lilliput, Carmicheal House, Kittens, Thomas Scott,
Gini&Jony, LaDiamond, Nice Looks, Dosa Plaza, China Land, Chopking, Indian Tadka,
MotiMahal, Caf Energise, Caf Bollywood, Kwality Swirls JuiceZone, Namrata Cup Corn
.Curries and Parathas, etc.
City Center Mall:
They have leased Operational Mall on Palm Beach Road, Vashi. The
list of brands which we introduced to this mall are:
Levis, RoopSangam, Kittens, Gini&Jony,La Diamond, And Design,Adora, M&B
Shoes,Black berry, Weekender, Infancy,Timex, GKBOpticals, Black Berry, ITC John
Player, Unistyle,Addidas, Nike, Spykar,Lee Cooper, Ruff Kids, L effect, Live In, Lovable,
Dominoes,NiceLooks, Top Corn, Caf Coffee Day, Ameoba Game Zone, Stone
ageRestaurant.
Bank Finance:
53
Quality Objectives
Continuous improvement in the quality of services.
Promptresponse tocustomer complaints
Strong property data bank.
Aggressive follow up & due diligence.
Panel of associates for legal, finance, market research,investments and other allied
subjects.
Handling properties in all metros and all other cities across thecountry
Overview
Alliance Property Services is professionally managed companyHaving presence in
Mumbai, India in the following activities:
1. Real estate Sale and lease.
2. Lease of retail outlets in malls and High street.
3. Joint ventures with developers.
4. Leasing and sale of entire properties with High Value clients./Builders/Investors/Private
equity /Venture capital /Foreign Direct Investors.
5. Franchising in retail and other spheres.
6. Arranging attractive investment proposals/ideas for investors.
7. Holding real estate/franchising /retailing /financing expositions and
Exhibitions in all towns and cities.
8. Finding investors for local developers and Builders.
9. Underwriting entire projects for marketing, investments andExecution
54
Residential
Office
Commercial
IT Park
Hospitals
Multiplex es
Indus trial
Institutional.
Advisory Services:
Investment Advisory Services
Third Party Due Diligence & Service Management
Feasibility Analysis
Lease & Utility Audits
Relocation Studies
Property Valuation & Tax Consulting
Site Selection Modeling Analysis & Strategic Planning
Merger and Acquisitions
Joint Venture, Collaborations, Franchise
Foreign Direct Investment (FDI)
55
Allied Services:
Valuation and Land Appraisal
Tenant / Purchaser Representation
Research & Feasibility Studies
Project Management
Bank Finance: Preparing project and feasibility report, Bank
Turnkey Financing Solutions
a)
b)
c)
56
59
Clear Title
90% of the lands in India do not have clear title. The ownership is unclear, thereby creating
a scarcity of land. This is due to poor recordkeeping and outdated complaint processes. All
updated records must be computerized to increase transparency in land ownership. And
special fast track courts must be set up to clear all legal land disputes in a short period of
time.
Stamp Duty & Registration
The cost of transferring land titles must be reduced from rates of 10%stamp duties to
reasonable levels of 3 to 5%; similar to prevailing rates in developed countries. This will
encourage sellers to pay stamp duties, instead of trying to cheat the government, thus
increasing the revenue for the country. The high duties have also encouraged unaccounted
money being used in most real estate transactions in India. The registration procedure
should also be made transparent and simple so that corruption can be minimized.
60
After
more than three years of spectacular house price rises, Indias property market continues its
downward trend, mainly due to high interest rates on home loans and slower economic
growth.
Residential property prices are now falling in most cities in real terms (given Indias high
inflation, it is important to distinguish nominal price rises from real price rises).
Nominal house prices rose in 13 cities (out of the 26 cities covered by National Housing
Bank (NHB) Residex figures) during the year to Q1 2014, while the remaining 13 cities
have seen their nominal house prices fall. But when adjusted for inflation, house prices
actually fell in 21 cities, whereas only 5 cities experienced price increases.
In New Delhi, house prices fell by 1.49% during the year to end-Q1 2014. When adjusted
for inflation, house prices in the capital city actually dropped 7.82% over the same period.
During the latest quarter, house prices increased 1.53% (2.81% in real terms).
The highest annual house price increase was in Surat at around 17.86% (10.28% in real
terms) y-o-y to Q1 2014. It was followed by Chennai, which had a 12.58% price increase
(5.34% in real terms), and Nagpur, which had a 10.43% price rise (3.33% in real terms).
Meerut registered the largest price drop in Q1 2014, plunging by 13.61% (-19.17% in real
terms). It was closely followed by Ludhiana with a 13.17% drop (-18.76% in real terms)
and Vijayawada with a 13.04% drop (-18.63% in real terms). Other struggling Indian
cities include Jaipur (-9.82% nominal, or -15.62% in real terms), Coimbatore (-7.61%
nominal, or -13.55% in real terms), Indore (-7.18% nominal, or -13.15% in real
terms), Chandigarh (-5.67% nominal, or -11.74% in real terms) and Kochi (-4.49%
nominal, or -10.64% in real terms).
61
Despite this, the Indian property market is expected to experience a post-election boost.
Newly-elected Indian Prime Minister Narendra Modi is expected to revive the slowing
economy and the struggling property market.
Local real estate experts are optimistic on the future of the Indian property market:
"We have a huge expectation from the new government as Modi ji has demonstrated good
governance in Gujarat. We expect efficiency in approval process and easier bank funding
which are the two major concerns for the industry," said Lalit Jain of realtors apex body
CREDAI.
"The formation of a stable government not dependent on coalition partners will hopefully
mean faster decision making and economic reforms. If GDP growth picks up, one of the
early beneficiaries would be the real estate industry," said Anshuman Magazine of CBRE
South Asia.
"We are optimistic about the reform and changes this government will bring in to boost the
economy. For the real estate in particular, we firmly believe that the sector will be given
industry status this time which will ease all fund inflow," said Parsvnath Chairman Pradeep
Jain.
Indias economic growth was 4.6% in the first quarter of 2014, after 4.6% in Q4 2013,
5.2% in Q3 and 4.7% in Q2, according to the Ministry of Statistics and Programme
Implementation.
The economy is expected to expand by 5.4% in 2014.
Previous annual GDP growth rates were 4.4% in 2013, 4.7% in 2012, 6.6% in 2011, and
10.3% in 2010, based on figures from the International Monetary Fund(IMF). Real estate
prices in India (as elsewhere) tend to be strongly boosted by high GDP growth, which puts
money in buyers pockets. Along with interest rates, GDP growth is more important than
any other factor for property prices.
Indias housing boom era
From 2002 to 2007, house prices in India rose rapidly. Strong economic growth and
urbanization supported house prices, as did inadequate infrastructure in city centres, lack of
planning and antiquated land laws. From 2005 to 2007, the economy grew at 8.9% per
annum, making it one of the worlds fastest growing, following on from 7.6% per annum
growth from 2003 to 2004.
The price increases were accompanied by interest rates which fell to as low as 7.5% from
early 2004 until 2005. By 2006 mini speculative boom had been set off, and residential
properties in Mumbai cost 100 times the average annual income. Developers capital
rapidly grew as their stock prices increased, and they used it to bid high prices for huge
plots of land, making it relatively easy to sell properties at very high prices.
During the world economic downturn in 2008 demand for luxury housing fell 50%. House
prices in Delhi fell by as much as 13.08% during the year to H2 2009. Developers
refocused on building low-income homes. But Indias economy quickly rebounded, and
house prices soon started rising again supported by the accommodative central bank.
Indias rupee and inflation crisis
The dramatic appointment as RBI governor of RaghuramRajan, former chief economist for
the International Monetary Fund, came in a situation of near-crisis.
On August 28, 2013, the Indian rupee had crashed to a record low of around 68.825 per
US$. The depreciation made Indias economic confidence drop sharply by 7 points to 53%
in August 2013, according to research firm Ipsos. Causes included:
The strong USD, aggravated by the Feds decision to reduce Quantitative Easing;
Slowing economic growth in India, rising inflation, volatility in the equity market, causing
massive withdrawals of international investment
62
In defending the countrys currency, the RBI had spent around US$ 17.23 billion worth of
foreign exchange reserves during the year to September 6, 2013, leaving the reserves at
around US$274.81 billion. Planning Commission Deputy Chairperson Montek Singh
Ahluwalia assures public that India has adequate amount of foreign exchange reserves to
defend its currency.
Given two years of rupee depreciation, it was expected that exports would be boosted. But
though there was an 11.6% y-o-y increase in exports in July 2013, the effect was limited,
with rising import prices having a severe effect on Indian industry.
Exports are unlikely to get any significant boost, according to Indranil Pan, chief
economist at Kotak Mahindra Bank. Any benefit [from the weak rupee] will be offset by
the fact that there is a huge inflation problem in India, and the cost of manufacturing is
very high for local companies.
Inflation was allowed to rise significantly during 2007-1010, and more recently has risen
worryingly again. Indias huge fiscal and current account deficits do not help. The current
account deficit in 2012/2013 soared to a record high of US$ 88.2 billion or around 4.8% of
63
GDP. The government aims to reduce it to US$ 70 billion this year. The fiscal deficit was
4.9% of GDP in fiscal year 2012/2013.
The Reserve Bank of India (RBI) has in recent years tended to accommodate inflation,
phased by the perplexing combination of high inflation and weak economic growth. The
RBIs stance has been extraordinarily lax, leading the prestigious Indian Financial Express
to talk of The rudderless Bank of India.
For example, the RBI reduced its key (repo) interest rate by 0.25 percentage points to
7.25% in May 2013, the third consecutive rate cut implemented this year. Amazingly, the
pressure from business has been for even lower rates. Agencies such as the Federation of
Indian Chambers of Commerce and Industry (Ficci), Confederation of Indian Industry
(CII), Associated Chambers of Commerce and Industry of India (Assocham), and India Inc,
all urged the RBI to announce a rate cut in the upcoming monetary policy review on
September 20, 2013.
Rajan took office on 4 September 2013. A day after he took office, the rupee reversed its
decline and on 19 September hit a one-month high of 61.77.
On 20 September the RBI released its first quarterly review on Rajans watch, announcing
an unexpectedly hawkish 25% increase in the key (repo) rate to 7.5%. Measures taken by
the RBI on 20 September included:
An increase in the key (repo) interest rate of 0.25% to 7.5%. The local market was shocked
and stocks fell but what is surprising is how moderate Rajans hawkishnessis, given
that:
The RBI also eased liquidity through a reduction in the marginal standing facility (MSF)
rate, at which banks borrow from the central bank, by 0.75% to 9.5%.
The RBI reduced the minimum daily maintenance of Cash Reserve Ratio (CRR) from 99%
of the requirement to 95%, a move aimed at inducing liquidity into the system.
The message was simple: (a) controlling inflation is top priority; (b) it must not be pursued
at the cost of killing the banking system.
Small mortgage market in India
64
Indian buyers usually pay for apartments before construction has been completed. Many
buyers do not take out mortgage loans. As a result, the ratio of housing loans to GDP is
very low. In 2012, housing loans in India were only around 4.14% of GDP. The leading
mortgage lender is the Housing Development Finance Corporation (HDFC) followed by
the State Bank of India (SBI). Total housing loans in India were around INR 4,033.78
billion (US$ 63.36 billion) in 2012, up by 12.3% from INR 3,590.67 billion (US$ 56.40
billion) a year earlier.
Interest rates at major banks and financial institutions range from 9.95% to around 11.10%,
while fixed-rate mortgages are at 11.50% to around 13%.
The loan to value (LTV) ratio of most Indian homes should not exceed 80%, according the
RBI. However, according to RBIs Master Circular dated July 1, 2013, as of June 21, the
following LTV ratios are now maintained by banks:
CATEGORY OF LOAN
LTV RATION
(%)
90
80
Above ` 75 lakh
75
(b) CRE RH
NA
Despite reforms since 1991, Indias mortgage market is held back by problems:
Banks prefer to lend to middle and high-income sectors, leaving limited financing options
for low-income individuals.
The government has a huge influence on major domestic banks, discouraging initiative.
Theres no proper legal framework for foreclosures
Titling problems are rampant.
65
66
After two years of below 5% growth (4.4% in 2013 and 4.7% in 2012), the Indian economy
is expected to grow more strongly for the remainder of 2014, with the International
Monetary Fund (IMF) forecasting a full-year GDP growth rate of 5.4%. Indias economy
expanded by 4.6% in the first quarter of 2014, according to the Ministry of Statistics and
Programme Implementation.
High inflation is one of Indias major problems, standing at 8.28% in May 2014. Inflation
is expected to slow slightly to 8% this year, after average annual inflation of 10.3% from
2008 to 2013, according to the IMF.
In June 2014, the Reserve Bank of India (RBI) kept its key interest rate unchanged at 8%.
The RBI is expected to keep the key rate on hold at the third consecutive meeting in August
2014, according to HSBC.
The Indian rupee (INR) continues to slide, following two years of sharp depreciation. In
July 31, 2014, the rupee depreciated to a three-month low of INR60.55 against the U.S.
dollar, on capital outflows after the US Fed trimmed its monthly bond buying programme
by another US$10 billion by end-July 2014. Moreover, high demand for the U.S. dollar
from importers and the weakness in local equities also pulled the Indian rupee down
against the U.S. dollar.
In defending the countrys currency, the RBI spent around US$ 17.23 billion worth of
foreign exchange reserves during 2013, leaving the reserves at around US$274.81 billion.
Planning Commission Deputy Chairperson Montek Singh Ahluwalia assures public that
India has adequate foreign exchange reserves.
Modi brings hope
67
Right after NarendraModis election victory, there was widespread optimism about Indias
economy and employment outlook. Modi has pledged to reduce inflation and eradicate
corruption. The new PM also vowed to step up investment and clear regulatory hurdles for
businesses.
Modi also pledged to reduce Indias fiscal deficit to 4.1% of GDP this year, from 4.5% in
2013 and 4.9% in 2012.
"After two consecutive years of sub-5% growth, the change in government is significant
given the [BharatiyaJanata Party] BJP's economic emphasis, stability in composition and
decisive governing structure," said RohiniMalkani of Citigroup India.
68
Findings
As the GDP increases the real estate prices also increases because there is a high degree
of positive correlation between the real estate prices and GDP.
Real estate prices also increases with increase in the per captaincies as there is high
degree of positive correlation between these two also.
The infrastructure of India is also growing day by day so it adds to the
Better facility to different sectors which affect the real estate prices.
The FDI into the country affects the real estate FDI and real estate having a positive
correlation leads to the boom in this sector. Increase in FDI from 2006 to march 2007 is
10%. Earlier it was 16% and now in2008 it is 25%.
The interest rate also affects the real estate prices because it affects the lending and
borrowing by the investors.
The growth in the real estate sector is between 25-30% in a residential Sector, 10-15% in
commercial sector and agriculture sector.
Housing sector constitute 80% of real estate in terms of value and 20%
by commercial sector.
In residential segment, availability of easy home finance and rising purchasing power has
driven the growth. Builders are launching high-end, life style residential products to cater
to the growing bunch of high net worth individuals.
In 2008 the growth of real estate sector is going down due to high inflation and hike in
home loan rates by the banks following the increase in bank rate and SLR by the RBI
69
The outsourcing and IT/ITES industry have contributed to the demand for quality officespace. The estimated demand from IT/ITES sector alone is expected to be 150mm sq. ft. of
space across the major cities by 2010.
Suggestions
The following recommendations are made this paper Due to high prices the lower income group is not able to purchase the shops, so company
should take kept in mind to protect the lower income group.
The agriculture land covered into the commercial and residential purpose. But the
population is also increasing day by day. So company should steps for the same.
The investors should analyze the type of project in which they are
going to invest and the potential returns from it.
Privatization of Airports and ports needs to be speed up.
There is a lack of proper data and management of the real estate sector so company
should take the corrective steps in this regard so that the proper estimation and
management of the real estate can be made possible.
Commonwealth is scheduled for 2010. Hotels, sport stadiums another infrastructure to
have successful games need to be expedited. This is another great opportunity for foreign
developers and investors to step in India. Thus more and more encouragement should be
given to foreign investors. Stamp duty is extremely high and must be rationalized and
brought down to 2-3% as per global practice, which is now in India varies from 5-6%.
Due to lot of investment avenues in real estate in India, fraud cases are
also increasing day by day like in Delhi deconstruction of buildings. Thus
Careful measures and laws should be enacted to deal with these types of situations.
70
CHAPTER -5
CONCLUSIONS
CONCLUSIONS
71
After studying all the factors of the real estate it can be concluded
that the Real Estate is a very wide concept and it is highly affected by the macro-economic
factors like GDP, FDI, per capital income, Interest rates and employment in the nation. The
most important factor in the case of Real Estate is location which affects the value and
returns from the Real-Estate. India needs a stronger capital market base for property
financing. The debate on the potential introduction of REITs and real-estate funds points in
the right direction. The introduction of REIT s in2007, will give international investors in
particular a familiar investment vehicle. Private investors could also enter into indirect
investment in real-estate. Although interest in new projects is most likely to come primarily
from institutional investors, the rising middle class is likely to seek new instruments aside
from direct property investments in the medium terms, in the end we can say that the
investment in Real Estate in India is aviary good investment opportunity. But one should be
very careful while taking decision in this direction due to rising inflation and interest rates.
Legal issues should also be kept in mind while choosing a property.
72
CHAPTER -6
IMPLICATION OF THE STUDY
73
India has enormous potential in all its property investment categories. Strong
population growth, a large pool of qualified workers, greater integration with the world
economy and increasing domestic and foreign investment are fuelling demand for office,
retail and residential property. Although not discussed in depth in this paper, this demand
growth can also be applied to many special property classes, such as hotels or second
homes. Going forward, it will be a matter of exploiting this potential. For the real estate
industry, three aspects are most particularly important. First, further opening to foreign
investment is desirable. Not only do international investors have the means to finance new
construction projects, but also possess the expertise in market analysis, facility
management and building construction. In the medium term these will act as catalysts to
bring greater transparency to the market. Second, India needs a stronger capital market
base for property financing. The debate on the potential introduction of REITs and real
estate funds points in the right direction. The introduction of REITs in 2007 will give
international investors in particular a familiar investment vehicle. Private investors could
also enter into indirect investment in real estate. Although interest in new products is most
likely to come primarily from institutional investors, the rising middleclass is likely to seek
new instruments aside from direct property investments in the medium term. Third, the
government needs to step up developing the urban infrastructure. In recognition of this,
Indias finance minister Shri P. Chidambaram presented an extensive urban investment
package during his budget speech for fiscal year 2005/2006: If our cities are not renewed,
they will die.40 In December 2005 the Jawahara lal Nehru National Urban Renewal
Mission estimated that the selected63 cities will require annual investments of USD 4 bn.
Roughly half of this is for the seven biggest cities. In his latest budget speech on February
28, 2006 the finance minister also announced that the government wishes actively to
promote the establishment of newtowns.41 Channeling the process of urbanization into
new agglomerations is a plausible step, given the growth scenarios for the metro cities. But
it requires additional funding and is likely, at best, to make an impact on real estate markets
in the medium term.
Response Variance Across Sample Characteristics. The sample was tested to see whether
the responses to the practice questions varied significantly relative to a number of control
factors. The factors tested were: Real estate portfolio size CRE team size CRE&FM
74
operating budget size Professional membership (73% of the sample are industry association
CoreNetGlobal members) CRE organization structure Industry sector Enterprise annual
revenue Total number of enterprise employees No significant differences across responses were found
based upon these factors. The only difference in means that was greater than 1 (i.e. one point
difference in average response on the 1-7 scale) was the difference between the lowest and highest
industry sectors.RegusGlobalReport Corporate Real Estate Impact on Enterprise Success
April 2011 Findings: Fundamental CREMmanagement Practices The study collected
information regarding four fundamental corporate real estate practices: organizational
structure, budget control, CRE reporting and use of suppliers. Responses were limited to
four choices. The responses are informative on their own, and were also compared to
the practices maturity scales to see if any of these fundamental characteristics correlated
with the survey results, as discussed above. There is very little information published
documenting the relative distribution of these practices, and the results shed light on some frequent
debates. Further, one question solicited the opinion of the survey respondent regarding senior managements
view of CRE.Given the increase in telework (where employees are allowed to work from
home or another location) and implementation of alternative workplace strategies (AWS),
the survey also enquired into current telework and AWS practices, and asked respondents
to predict future policies and practices regarding alternative work and sustainability at their
company.Fundamental CRE PracticesAmong the four generic approaches to CRE
organizational structure presented in the survey, a hybrid of functional and geographic
operations was most commonly cited, possibly due to the global scope of many of the
participating companies. The rest evenly balanced between either functional or geographic
driven organizational structures, as shown in Figure 2. None of the participating companies
managed corporate real estate at the business unit level. Figure 3 summarizes the budgetary
control and real estate cost charge-back policies at the companies surveyed. The
most common practice is to budget and manage CRE costs centrally and then recharge all
costs back to business units. There is a fairly even spread across the other three methods.
In the majority of the organizations (78%) the central CRE function has control of the
overall CRE budget and through this
75
should be able to strongly influence and drive improved practice and policies consistently
across the entire portfolio.Figure 2: Basis for CRE OrganizationStructure Figure 3:
Budgetary Control and Recharging Practices. The distribution of where the CRE function
reports into the overall corporate management reporting line is also quite diverse across the
sample, as Figure 4demonstrates. The survey respondents most frequently report to the
Chief Financial Officer, followed by both the Chief Operating Officer and the Technology
function. Corporate Real Estate Impact on Enterprise Success The survey collected
information about the level of activity where suppliers are used. The results are shown in
Figure 5. Given that the survey was targeted at the largest corporate occupiers who would
potentially be best positioned to benefit from integrated services across the globe, it may be
surprising that 38% of the respondents only use suppliers tactically at a local or
national/regional level. At the other end of the spectrum, an equal proportion of
respondents engage suppliers on an an international level based around a limited number
of principal relationships responsible for integrated solutions across a wide range of
functions and/or countries. This points to a considerable growth potential for the major
international service providers, as over 60% of those surveyed arent currently using
integrated solutions on an international b
76
CHAPTER -7
FINDINGS /RECOMMENDATION
FINDINGS /RECOMMENDATION
78
Referrals
It has been estimated that in North America, referrals and word-of-mouth recommendations
generate 85% of new business.
In effect, a referral or recommendation is third party confirmation that the business,i.e. the
agentis competent and trustworthy. The challenge for agents is to increase the number of
people who believe that they are sufficiently competent and trustworthy to recommend
them to other people. This reputation for competence and trustworthiness doesnt just
happenit has to be earned.
Advertising
Advertising properties listed for sale represent implied endorsements of agents
competence and trustworthiness. After all, the owners of the properties advertised for sale
must have believed the agents to be competent and trustworthy; otherwise they would not
have hired them to help sell their properties.
Open Houses
Open houses allow real estate agents to showcase their technical expertise and personal
characteristics. By interacting with agents at open houses, prospective clients can assess
individual agents competence and trustworthiness and by extension, how the agent can
help them. For prospective clients, its like test driving a new car.
Networking
Networking is the most multi-faceted, versatile and effective marketing tool available to
real estate agents. Among other things, it allows them to exchange information and
showcase their trustworthiness. Above all, it also makes it possible to interact with other
people, who ideally will like and trust an individual agent well enough to do business with,
and refer others to him or her.
79
Prospecting
The best way to develop a client base is by well-focused prospecting.
Prospecting is an essential marketing strategy. It generates new leads that can be converted
into clients. It also provides the inflow of new clients. These clients will ultimately become
part of the pipeline by contributing repeat and referral business.
A Benefit For All Agents
All real estate agents can benefit from applying the best marketing practices of high
producing agents. Specifically, this means that the key marketing strategies of high
producing agents will help you attract clients.
80
CHAPTER -8
LIMITATIONS
LIMITATIONS
81
The Sample for research was chosen only from a limited area.
Complete data was not available due to company privacy and secrecy
82
CHAPTER -9
OVER ALL EXPERIENCE
India has enormous potential in all its property investment categories. Strong population
growth, a large pool of qualified workers, greater integration with the world economy and
increasing domestic and foreign investment are fuelling demand for office, retail and
residential property. Although not discussed in depth in this paper, this demand growth can
also be applied to many special property classes, such as hotels or second homes. Going
forward, it will be a matter of exploiting this potential. For the real estate industry, three
83
aspects are most particularly important. First, further opening to foreign investment is
desirable. Not only do international investors have the means to finance new construction
projects, but also possess the expertise in market analysis, facility management and
building construction. In the medium term these will act as catalysts to bring greater
transparency to the market. Second, India needs a stronger capital market base for property
financing. The debate on the potential introduction of REITs and real estate funds points in
the right direction. The introduction of REITs in2007 will give international investors in
particular a familiar investment vehicle. Private investors could also enter into indirect
investment in real estate. Although interest in new products is most likely to come
primarily from institutional investors, the rising middleclass is likely to seek new
instruments aside from direct property investments in the medium term. Third, the
government needs to step up developing the urban infrastructure. In recognition of this,
Indias finance minister Shri P. Chida BBA ram presented an extensive urban investment
package during his budget speech for fiscal year 2005/2006: If our cities are not renewed,
they will die.40 In December 2005 the Jawaharal Nehru National Urban Renewal Mission
estimated that the selected63 cities will require annual investments of USD 4 bn. Roughly
halfof this is for the seven biggest cities. In his latest budget speech on February 28, 2006
the finance minister also announced that the government wishes actively to promote the
establishment of newtowns.41 Channeling the process of urbanization into new
agglomerations is a plausible step, given the growth scenarios for the metro cities. But it
requires additional funding and is likely, at best, to make an impact on real estate markets
in the medium term.
84
2. Total 25 towers A,J,N,V, towers are 4BHK & another tower are 2&3BHK.
6. From this project Botanical Garden, Metro Station-37, Metro Station -18 & GIP
mall only 5min.Drives.
85
TYPES
Type-1
Type-2
Type-3
Type-4
Type-5
Type-6
BHK
2BHK + 2 toilet
3BHK+ 2toilet
3BHK+ 3toilet
3BHK+ 3toilet+Servent Room
4BHK+ 4toilet+Servent Room
4BHK+ 4toilet+Servent Room
PREFFERED LOCATION CHARGE (PLC);1. First Floor 2. Second Floor 3. Third floor 4. Fourth Floor 5. Fifth Floor -
200/sq.ft.
175/sq.ft.
150/sq.ft.
125/sq.ft.
100/sq.ft.
86
AREA
1140/sqft
1390/sqft
1640/sqft
1850/sqft
2465/sqft
3075/sqft
=
=
6100/sqft
5900/sqft
OTHER CHARGES
1.
4,00,000 Rs
2. Lease Rent
150/sqft
3. Power backup
15,000/kv
40/sqft
40/sqft
6. Club Membership
1,00,000 Rs
7. Maintenance Deposit
20/sqft
87
1. Floor
2. Wall -
Verified Tiles
Texture painting in Living room & Master Bedroom
3. Kitchen-
4. Toilet -
5. Master Bedroom
Wooden flooring
6. Ceiling -
P.O.P.
88
CHAPTER -10
ANNEXURE
89
ANNEXURE
90
E. I would like to investigate this type of neighborhood (check all that applies):
Urban
Suburbs
Town
Mountain Area
F. I will consider:
only single family homes
villa and penth house
both of the above
G. YES, I must sell my present home before considering the purchase of another
home.
I would estimate its selling price at approximately: in Rs.
200,000-250,000
251,000-350,000
351,000-500,000
91
501,000-750,000
751,000-1,000,000
1,000,000-1,500,000
Over 2,500,0000
I do NOT need to sell my present home before purchase.
H. I need a new home:
Immediately
In 90 days
In 6 months
Within a Year
92
QUESTIONNAIRE
93
(QUESTIONNAIRE)
1 What are your investment objectives?
o Short term
o Long term
o Situation
Reason-
o REIT
o REMF
o NONE
Reason-
94
o Increase returns
o Reduce risk
o Both
Reason-
o Yes
o No
Reason-
95
Reason-
Reason-
Reason96
8. What kind of real estate investments have you made in the past?
o Residential
o commercial
o Both
Reason-
11.If yes, for what purposes you look in while investing into real
estate?
o Long term return
o Short term return
o Recurring return
o Own use
97
12.What all risk factors apart from the following you consider before
investing?
o Legal factors and regulatory risks
o Political factors
o Lack of reliable valuation data
o Lack of professional advice
o Hard to determine the best opportunities
o Asset volatility
Others_______________________________
98
o Golf course
o Club/ Parks
o Affordable Price Range/ Low Interest Rates
99
17. What all other factors your previous (Or Current) property
lack?
Please specify:__________________________________________________
o Greater Noida:____________________________________
o Others: __________________________________________
And why?
_____________________________________________________
100
CHAPTER -11
BIBLOGRAPHY
101
BIBLOGRAPHY
Different Journals.
Indian Real Estate marketing ( Anil kumar saini )
google
wikipedia
102