Académique Documents
Professionnel Documents
Culture Documents
ON
Of
By
HARSHA HASIJA
1440471
MBA IV SEMESTER
DR SUNAYNA
ASSOCIATE PROFESSOR
YEAR
Certificate of Supervisor
This is to certify that Mr. / Ms. Harsha Hasija Roll No.1440471 has completed the research project titled
“Study of different modes of promotions used by small agents & builders in real estate industry of
Delhi NCR” under my supervision in partial fulfillment of the MASTER OF BUSINESS
ADMINISTRATION degree of Chandigarh Business School Of Administration, Punjab Technical
University.
Supervisor’s signature:
Supervisor’s name: Dr. Sunayna
Supervisor’s Designation: Ass. Professor
Date:
Place:
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(Member of Research Committee’s Signature)
Seal of the CBS
Declaration
I hereby declare that the project entitled “STUDY OF DIFFERENT MODES OF PROMOTIONS USED
BY SMALL AGENTS & BUILDERS IN REAL ESTATE INDUSTRY OF DELHI NCR” was done by
me under the guidance of DR SUNAYNA, faculty at Chandigarh Business School Of Adminstration, CGC
Landran, Mohali, Punjab. In the partial fulfillment of the requirement for the award of the degree of Post
Graduate Program in Master of Business Administration. I assure that the work is original and has not been
submitted earlier to this Institute or to any other institution.
(HARSHA HASIJA)
(MBA (4th Sem)
Chandigarh Business School
Date:
Place:
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ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and supported me during the completion of
this project. First and foremost, my deepest thanks to Mr. Amit Arora, (Director of NestKeys Infratech Pvt
Ltd), my mentor during the course of the project for guiding me. He has taken great pains to go through the
project and make necessary corrections as and when needed.
My deep sense of gratitude and thanks also goes out to the various personnel at NestKeys Infratech Pvt Ltd,
among them I would like to specially thanks to the Director Marketing of NestKeys Infratech Pvt Ltd: Mr.
Abhinav Aggarwal, I would also like to thank Ms. Richa Gautam (HRD) for spending their valuable time in
teaching me the fundamentals of the business and answering my many questions with utmost patience.
I would also like to thank Dr. Sunayna, my faculty guide and various other faculty members of my
institution without whom this project would have been a distant reality. I also extend my heartfelt thanks to
my family for giving in their inputs and editing the first draft, and friends who helped me during the whole
course of this project.
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Table of Content
Research Title 1
Certificate_________________________________________________________2
Declaration ______________________________3
Acknowledgement 4
Table of Content ____________5
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Chapter: 1...........Introduction (Industry Profile)
Real Estate Industry is rapidly growing at a fast pace in India, the drastic change in population is demanding
for more residential apartments , multistoried buildings thus more and more construction is taking place
which in return benefits the Real estate industry, it also plays a critical role in the development of India’s
economy. It is the second largest employer after agriculture.
High Growth in services as well as manufacturing sector has also resulted in high demand for commercial
and industrial real estate.
Real estate industry is divided into four sub-sectors: Housing, Retail, Hospitality and Commercial. The
housing sub-sector contributes five-six per cent to the country's gross domestic product (GDP). Meanwhile
retail, hospitality and commercial real estate are also growing significantly.
Growth in the Indian economy has stimulated demand for land and developed real estate across industries.
Demand for residential, commercial and retail real estate is rising throughout India, accompanied by
increased demand for hotel accommodation and improved infrastructure.
The Indian real estate sector plays a significant role in the country's economy. The real estate sector is
second only to agriculture in terms of employment generation and contributes heavily towards the gross
domestic product (GDP). Almost five per cent of the country's GDP is contributed to by the housing sector.
In the next five years this contribution to the GDP is expected to rise to 6 per cent.
Almost 80 per cent of real estate developed in India is residential space the rest comprises of offices
shopping malls hotels and hospitals.
Historical evaluation
The Real Estate Scenario in India is witnessing a huge growth as most of the metropolitan cities are
escalating the property map with more and more projects. According to reports, an estimated size of the
Indian real estate sector is $ 12 billion of country’s 600 billion economy. The real estate sector is witnessing
a stable and further sustainable boom and the market is expected to reach $45 billion in next five years. This
boom in the real estate market comprises of basically three sectors, i.e. residential, commercial and retail.
This boom in real estate market can be apparently observed in delhi, greater noida and other major cities of
the country.
As the demand is getting higher, more and more players are entering the industry with a wide range of
project to offer. The market trends in Indian real estate sector are very healthy and are indicating towards a
positive trend for the long-term investors. Other factors which are likely to contribute to long term demand
for real estate in India are rapid population growth, rising disposable incomes for individuals and easy credit
lending facilities.
To conclude Indian real estate sector promises to be a lucrative destination for foreign investors into the
country. The Indian realty sector, if channelized properly, can be helping the growth of several other sectors
in India through its backward and forward linkages.
Growth rate
Indian real estate industry has been expanding at an exponential rate. Favorable demographics conditions
improvement in basic infrastructure rising purchasing power availability of cheap finance nuclear families
professionalism in real estate and reforms initiated by the government are some of the major drivers of this
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spectacular growth. According to industry estimates the real estate industry in India has been growing at 33
per cent CAGR (compound annual growth rate) and could be a $50 billion industry in the next four years.
The upturn straddles all the major sectors of the industry such as commercial residential retail industrial
hospitality and Healthcare.
• Ansals
• Founded by Lala Chiranji Lal Ansal
• By far most dominant activity of Ansals has been Real Estate Promotion & Development
• company has several landmark high-rise commercial building like Statesman House, Ambadeep,
Antriksh Bhawan, Tolstoy House, Indra Prakash, Navrang House and Ansal Bhawan
• Ansals have also completed several residential buildings like Gauri Sadan, Upasana at Hailey Road
& Dhawan Deep at Jantar Mantar road, all in the heart of New Delhi at Connaught Place.
• There is the most prestigious “Ansal Plaza” Shopping Mall associated with its work
• Also it has made elite townships, Sushant Lok and Palam Vihar in Gurgaon and several other places
all over the country.
• Their profit declined by 81.24% in the last financial year over the last year.
• This is one of the badly hit company by the economic slowdown.
• 569 is the all time high of this company in 2006 and now trading at just 10% of its all time high.
Parsavnath Developers
• It was incorporated on July 24, 1990 under the Companies Act, 1956 as Parsvnath Developers
Limited.
• With more than two decades of experience in its repertoire, the group has already stamped its
presence already in seventeen states and going Pan – India.
• It has made various developments in areas like GURGAON, Noida, South Delhi.
Unitech Group
DLF Group
Founded in 1946
DLF Group is one of the biggest real estate giants
Built many high-quality buildings across the country, specifically in Gurgaon
Tied up with Hilton Group to build whopping 100 hotels in India over the next few years.
In current expansion plans, DLF has over 425 million sq. ft. of development across its businesses,
including developed, on-going and planned projects.Spread over 32 cities, mostly in metros and key
urban areas across India
Financials of DLF
DLF is the market leader in this sector with net profit of 1547 cr.
It was way lower than its last year profit by more than 1000 cr.
It was well supported by the timely launch of IPL.
The share of this co. touched the all time high of 1227 in dec. 2007 which was just 6 months after its
issue and now trading at 337.
K. Raheja
Raheja Developers Limited was incorporated in the year 1990 by Mr. Navin M. Raheja, the first generation
entrepreneur. Today, the company enjoys a strong presence in NCR and has made its position as one of the
largest companies in the Real Estate Industry. The company is one of the fastest growing entities in the
realty sector with a difference that offers luxury for reasonable costs, excellent customer care levels with
highest customer satisfaction index and the highest imaginable standards for the welfare of its staff, society
as well as for the environment.
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The Company has traversed a path of steady growth & expansion and has posted increasing turnover and
profits year after year. The systems have been strengthened and new processes have been added.
Today, the company is one of the largest in the Real Estate Industry with projects all over India. It is also
one of the biggest companies in India with executable and sanction projects over 60 million sq. ft. in hand
with projects spanning over 1000 acres of land at various stages of deliberations. The company so far has
executed and delivered 36million sq.ft. of mainly residential and commercial projects including farmhouses,
plotted development and hotel properties.
The company is managed by highly qualified professionals who are fully engrossed to ensure that the
company maintains its high standards in quality construction, timely delivery and customer satisfaction. The
company has always strived hard to keep its commitments and thus enjoys an extremely resonant reputation
in the construction industry.
Market trends for the real estate industry can be summarized by five fundamental themes:
• Skill Shortage.
• Non Availability of Statistics
• Overvaluation of Property
• Highly Fragmented
• Lack of Transparency.
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Increasing Prices Decreasing Demand
Dlf
Unitech
Parsarvnath
Fig 1.1
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Chapter: 2........Company Profile
Nest keys – Nurtured with an idea to shake up the unorganized property market to a Need based Property
Solutions Specialist with team of business associates in this ever changing dynamic, non regulated property
space and to help them manage their customer’s investments grow with right knowledge and skills.
Company’s philosophy is based on nurturing the right talent with imparting them the adequate knowledge to
deliver the right investment /property solutions to customer. The core team having 40 plus years of
professional experience in understanding the Indian environment and setting up new distribution channel
and mentoring the associates with innovative investment solutions, technology, operations and customer
service management assistance to entrepreneurs entering into property space and helping them managing
there clients in a structured approach. Company has its various channel partners through which it runs its
operations. The real estate companies such as 99acres.com, makaan.com, housing.com, indiaproperty.com,
propertywala.com, propertytiger.com, commonfloor.com, magicbricks.com, etc. are authorized channel
partners with the company for running its operations.
History of company
Nestkeys Infratech Pvt Ltd was established in 2014 based in gurgaon Haryana. with its branch office
at modal town delhi. The core team having 40 plus years of professional experience in
understanding the Indian environment and setting up new distribution channel and mentoring the
associates with innovative investment solutions, technology, operations and customer service
management assistance to entrepreneurs entering into property space and helping them managing
there clients in a structured approach.
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Company is running under supervision of three directors.
NestKeys is an all-in-one real estate site where your search for all property needs ends and you can find
latest information about real estate markets and trends to help you figure out exactly what, where, and when
to buy, sell, or rent. With our nationwide presence you can also find a professional real estate agent, view
prices of recently sold homes, and see home values in your nearby locations. Get advice and opinions from
your local area real estate agents, brokers, and other local experts exclusive on Nestkeys only.
Other partners are as Magicbricks.com. It was launched by Times Business Solution Ltd in August 2006, as
a platform to bring together property buyers and sellers in the real estate industry.
Within three months of its launch it became the No.1 property portal.
Magicbricks.com has over 6 lakh registered users, including over 65000 real estate agents and more
than 13,000 builders.
It offers services like location Map Service, Email Alerts, Exclusive developer Micro-Sites, Magic
SMS service, Click to call, etc.
Products
AFFORDABLE HOUSING
Affordable Housing Policy, Haryana 2013, Approved by Government on 6th Aug. 2013
On PPP Model (Public Private Partnership)
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Group housing projects licensed by Govt. of Haryana in “Pre-Defined Sizes”, “Pre-Defined Rates” and in
targeted “Time Frame Completion Period”.
Why Affordable Housing?
Affordable Housing has come up with an increasing demand for consumers in prospect to give them an
opportunity to own a house at a very economical cost as well as to give them an opportunity to take the
pleasure of property appreciation in comparison with the normal housing apartments. Three main reasons
for you to invest in affordable housing apartments without any delay in your thought to this investment:
Pre-Defined Sizes
Pre-Defined Rates
Confirmed time frame completion period
This new thought of bringing PPP Model (Public-Private Partnership) keeps a constraint on the builder to
deliver the project on time else builder has to face a huge penalty of his “License Cancellation.”
HUDA Houses are better proposition than DDA’s
License granted for Affordable Housing cannot be converted into normal Group Housing.
Allotment is provided by only Draw and Booking is on First Come First Serve basis.
Completion time for these projects is 4 years from the date of approval of Building Plans and
Environment Clearance Certificate whichever is later.
Sizes are Pre-Defined by Govt. are 28 SQM to 60 SQM.
Minimum area for projects is 5 Acres and maximum area is 10 Acres.
Government took the initiative to give the benefit to Middle Class and Lower Middle Class families so these
projects are in affordable rates. But there are so many factors which makes it affordable.
Builder purchase land on normal rates but get Benefit on below things:
o License Fees and Land Conversation Fees is Waived Off.
o Internal Development Charges (IDC) is Waived Off.
o External Development Charges (EDC) is on Plot Rates not on Square Feets.
o If completion of project within 42 Months then last installment of EDC will be Waived Off.
o 5% of Flats are reserved for Builder for his Friends & Relatives.
Increased FAR provided by Government for these projects up to 20%. Approved FAR is 225.
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Increased Density provided by Government for these projects as minimum is 850 PPA and
maximum is 900 PPA. Ratio set by Government is 5 Person per Flat.
Builder can utilize 4% of the area as Commercial as per his desire Rates. Approved FAR for
commercial is 175.
All projects are Maintenance Free for 5 Years after possession. Builder will take care for the
maintenance of the project.
Rates are Pre-Defined by Government for these projects as below:
o Potential Towns of Haryana : Rs. 4000 per Square Feet
o Low Potential Towns of Haryana : Rs. 3600 per Square Feet
o Other Towns of Haryana : Rs. 3000 per Square Feet
All rates are on Carpet Area. Client saves up to 30% to 35% on these projects.
Free Parking for Scooter which is half of the size of car parking.
There are No Other Charges in these projects except Service Tax @ 3.09%.
Balcony will be on reasonable rates of Rs. 500 per Square Feet. But not more than 100 Square Feet.
As per Policy Builder have the right to Reserve or Give 5% of the total number of Flats to his Friends or
Relatives. Builder sell these Flats on Premium to the people who are Interested for the project and booking
of flats. Benefits of confirm bookings are as below:
o Rates are much Less than other General Projects near about. Differences in rates are from 40% to
60% on Super Area and if calculated on Carpet Area it can be much more.
o Builder get 10 to 12 times more applications for bookings and allotment is on Lucky Draw
publically so it Assure allotment of Flat.
What are the Terms for Builder for Affordable Housing set by Government ?
What are the Terms for Applicant for Affordable Housing set by Government ?
One person can Apply only for One Flat in One Project.
Can apply in more than one Affordable Housing but in case get allotted in more than one, have to
Surrender other flats.
As per Policy there must be No Property in the name of Applicant or on his/her Spouse or Children
name in Haryana.
Cannot Sale Flat before 1 Year from the date of Possession. Not even on GPA.
Yes All Leading Nationalize Banks provide loan on all Affordable Housing Projects up to 75%.
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Promotion
Canopy installation for promotion at prime locations of city.
It consist of installation of canopy at the prime locations of the city which results in getting the attention of
large no of people. A team of property experts are available at canopy for giving knowledge to the interested
people about the company & its product services. There are also available brochures, location map, product
introductory sheets, cost sheets, availability of leaf lets of bank consisting interest rates for loan, etc. all
documents consists of information such as address & contact details of the company officials.
Other promotional activities consists of mass mailing, bulk messaging, online advertising such as on
Google adward on social networking sites for example advertising on linked in , face book page, twitter,
etc.
Benefits: - A well Planned Banner is placed on the page footer which scrolls with the page, which
constantly attracts attention.
Benefits: - it gets Maximum exposure with logo, name and description which has the advantage of high
visibility and branding.
Gets a special display in the left panel of all relevant city special pages.
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Growth of Internet advertisement
Internet advertisement has grown immensely around the globe , as internet has got a vast reach which can
allow advertisers to reach significantly more people at a very less time and in a cost effective way,
nowadays people are using internet to do everything which starts from social networking to doing online
transactions , thus internet has been playing a dominant role . thus the advertisers are choosing this medium
to promote their business in a cost effective way . Internet advertising is becoming a platform and a choice
for local as well as for global advertisers it has become one of the key tools that companies use to attract
attention for their product or services . the growth of this particular media attracts the attention of advertisers
as a very good source or we can say a productive technique to bring in customers in a cost effective way .
Online advertisement also helps the users/consumers to get relevant information about a particular product,
this may not mean a sale of a product but it may drive the consumer to get the product from the store of
which he/she has got the information .
The graph below shows the revenue growth by the internet. Advertisement Bureau that internet
advertisement revenue reached $8.4 billion dollars in Q1 of 2012. This Q1 record marks a 15% increase
over the Q1 2011numbers at $7.3 billion.
FIG 2.1
This means that internet advertisement is continuing to become a media of choice for consumers
Internet advertisement offers so many facilities to the to the users of it, Still agents and builders prefer
Newspaper Advertisement as their first preference of advertisement and then Internet but online portals they
offer many benefits as compared to newspaper ads for example if the the agent want to edit his ad he can do
so but if we talk about newspaper ad the user cannot do so also thus editing facility allows agents to add few
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more properties in their ad by simply clicking on the the edit option also if they refresh their site the
particular agent page is shown at the top .
Many top builders such as DLF , Avani , Merlin group etc are mostly dependent on internet advertisement
and they spend huge amount of money in online ad , but they get a good response as they own the special
city page or premium page.
Many Agents find online advertisement as cost effective as they offer so many facilities, but these facilities
can only be beneficial if the user has knowledge of computer .
Therefore it has been a mixed effect as few agents and most builders prefer online ad as they have got a
good response but in the years to come online ad for small agents will become a good way to promote their
business as the investment is quite low and return is high
Banner/Hoarding: This type of Promotion is commonly seen by Small agents where they but their
banners in the streets and promote their business to get response from the buyers . If we talk about
builders generally they put their hoardings in the place where more people can see their
Advertisement thus builders mostly don’t put their hoardings everywhere but they are quite choosy
in doing that.
T.v : Small Real estate agents generally don’t promote their business though this medium but
Builders prefer this medium, as it reaches the mass builders like DLF, Godrej, merlin group do put
their advertisement in T.V.
Pamphlets: Small agents promote their Business through Pamphlets they give pamphlets which
consists of their name , phone number , address etc . so that the buyers who want to reside in a
particular place can contact them . sometimes it can also be in the form of a visiting card.
Newspaper : Newspaper is the most common medium through which both builders and Agents
promote their business . this kind of promotion is widely used and widely accepted as it is user
friendly for those people who don’t use internet .therefore the response is also quite good through
this medium . Almost all newspapers publish a separate page in which the agents and builders
promote their business .for ex- Telegraph , Anandabazar patrika , etc publish a page called : ” REAL
ESTATE”
Internet - This has been a recent trend of advertisement by Real estate agents , there has been found
that lot of people spend most of their time in the internet , there are lot of online portals for real
estate agents thus they promote their business through them .the response is also quite good . online
portals like Magicbricks.com , 99acres.com, indiaproperty.com are very popular in the real estate
world as they promote the real estate agents and builders.
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Organization Structure
FIG 2.2
Construction Department
It consists of Civil Engineers ,Architects, contructors ,builders or foremens etc, who have the responsibility
of construction of the projects.
Financial Department
It has the responsibility of handling all the decisions regarding the finance. It consists of collection,
budgeting , cash flow, accounting etc.
IT Department
It consists of IT engineers, Hardware engineers who handle all the technical problems.
Legal Department
It consists of lawyers who handle legal issues related to land and property.
Supervision department
It is responsible for monitoring all the activities taking place in the office. Responsibilities undertaken by
the team leaders and apex bodies of the company.
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Chapter:3............Review Of Literature
The Real Estate Scenario in India is witnessing a huge growth as most of the metropolitan cities are
escalating the property map with more and more projects. According to reports, an estimated size of the
Indian real estate sector is $ 12 billion of country’s 600 billion economy. the real estate sector is witnessing
a stable and further sustainable boom and the market is expected to reach $45 billion in next five years. This
boom in the real estate market comprises of basically three sectors, i.e residential, commercial and retail.
This boom in real estate market can be apparently observed in delhi, greater noida and other major cities of
the country .
As the demand is getting higher, more and more players are entering the industry with a wide range of
project to offer . The market trends in indian real estate sector are very healthy and are indicating towards a
positive trend for the long-term investors. Other factors which are likely to contribute to long term demand
for real estate in india are rapid population growth, rising disposable incomes for individuals and easy credit
lending facilities .
To conclude Indian real estate sector promises to be a lucrative destination for foreign investors into the
country. The Indian realty sector, if channelized properly, can be help the growth of several other sectors in
India through its backward and forward linkages.
Sullivan and Ross (1999) The existence of the real estate brokerage industry is generally attributed to high
transaction costs in real estate markets. Brokers are typically expected to market sellers' properties, assist in
contract negotiations, and coordinate the post-contract tasks necessary to close transactions. Presumably,
brokers can perform these duties at lower cost than sellers. In addition to cost efficiencies, brokers may also
impact market outcomes. Numerous researchers have investigated whether or not the use of brokers as well
as various broker actions, broker characteristics, and broker/seller legal relationships affect market outcomes
in the form of price and/or, time-on-the-market effects.
Greco (1991), Marsh (1998), and Schumell (1996) that the promotional strategies has impact on customer’s
influence to invest in real estate sector, it’s important to give attention to the change of consumption idea
and the use of cultural marketing in real estate enterprises. Based on the research first is to to create
architectural style, to increase the value of the community and reflect the owner quality; Secondly ,it should
build a good community atmosphere.
Wang (1994) according to this study builders & agents must strengthen brand creation, brand protection,
and create belongs to own brand advantage for obtaining good marketing effect. The establishment of the
brand have to be clear from the following points, first of all, the understanding of the concept of brand,
Enterprises should establish its image in the consumers' mind, take it from other similar products
differences; Second, we must establish harmonious public relations, and constantly improve the popularity
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of products in the society; Third, we need to take the good faith for this, on the premise of ensuring the
quality of the real estate, property, and the authenticity of ads, not making false promises to consumer fraud.
Shukla Ravi (2004), Real estate industry has become the pillar industry of the national economy. With the
growing industry, marketing has become the most critical factors in the system as a whole. Real estate
industry in three line cities is in the preliminary stage of development, according to the characteristics of the
current three line city real estate market, the correct implementation of marketing strategies is an important
part of real estate enterprises’ development.
Robert A. Olsen , 2001, O'Barr and Conley according to the author this article suggests that, Real estate
enterprises of three line cities want to achieve business goals, depending on the purchasing power of
consumers. So, the real estate enterprises should pay attention to the needs of the consumers in the
marketing activities, only meeting customer demands, the real estate businesses achieve sales goals and
develop better
Tahira K. Hira and Cazilia Loibl,2008, Real estate as a kind of high consumption goods, how to carry out
accurate positioning, is very important to influence people's buying. This requires real estate enterprises’
marketing personnel to do a good job of marketing, consumer groups clearly positioning. But in three lines,
real estate enterprises lack the consciousness of market positioning, and did not give more attention to it. In
fact, after planning the marketing positioning of real estate, it is able to get more of consumer recognition,
the possibility of its accurate market positioning is also higher.
According to Ronald &lisa (1998) If Real estate enterprises want to survive in such a complex market
environment, it should meet the actual needs of its customers to product the goods for customer needs, and
real estate enterprises will have to pay special attention to the real estate marketing to the production and
sales of marketable goods.
According to Robert A. Nagy and Robert W. Obenberger (1994) Previous studies of impact of region on
Real estate goods. Real estate belongs to region, this makes the real estate products bound by the city and
area. The supply and demand and price level of real estate products are affected by local regional economic
development, consumption level, customs and culture, etc. So different cities because of the different
economic development level, also have a significant difference between supply and demand and price
levels.
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According to Fang Fang (2013) Real estate enterprises used a large number of the outdoor advertising, in
the form of television advertising and publicity in recent years in order to be able to better make consumers
understand real estate product information, this way indeed promoted the real estate sales, and had played a
positive role. However, some advertising is also wrong, with false information and fraud and other
prominent problems, causes disturbing the order of the 's real estate market, and leading to legal disputes.
According to Fang Fang (2015) study about building a relationship with the clients using a simple marketing
strategy, keeping a database of clients and those who have shown interest in purchasing your property.
Keep an inventory of all those who have called to enquire about a property and the best thing to do is to
offer seasons greetings through emails and phone calls. This allows you as an agent to build healthy
relationships with potential customers. If you treat them nicely, they will not forget you and they will
contact you whenever they need any property during the year.
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Chapter: 4........Research Methodology
The study needed for the requirement of resolving the issues of clients who were looking for purchasing or
selling a home for their needs.
On the basis of location priority, i.e., desired area, desired city or locality.
On the basis of Family Type i.e. required small home for Nuclear or requiring big home for Joint
family.
Requirement on the basis of residents selection i.e., there desire to live among the society of blue
collar or white collar employees.
Some clients are looking for investment purpose and some for end uses , the people who are looking
for investment purposes their queries related to the return on investment and for end user queries
related to time horizon , quality of the apartment, Facilities and amenities provided by the builder.
Time horizon consists of Ready to Move apartment or getting possession after few years.
To study the ways by which the small agents and builders promote their business .
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RESEARCH DESIGN
Method:
Population :- Our Population are the Small Agents and Builders of real estate in Delhi NCR.
Sample size: 30
ii)North Gurgaon
Sources of data :-
Research Instrument
Questionnaire
Real estate companies come in all sizes. There are national real estate companies with thousands of agents
whose logos are recognizable throughout the country. Other companies are small operations, with about a
hundred, a dozen, or just one agent working for the company. Regardless of its size, survival of a real estate
company often depends on the company’s successful marketing strategy.
For a real estate company, the marketing strategy pitches the company as a whole, using a combination of
advertising and public relations to brand a company and create a desired public image.
Branding
Marketing a real estate company involves developing a recognizable brand. This begins by creating a
distinct logo and possibly, a slogan. As part of the marketing plan, real estate companies use logos and
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slogans consistently on their business cards, letterhead, personalized promotional gifts, websites, blogs,
signs, advertisements, mailings and flyers.
Internet
Today’s real estate company typically incorporates Internet marketing into its overall marketing strategy.
This might include development of a website, blog, Twitter and online visual tours. Internet marketing has
something for every budget, from free social networking, blog and Twitter accounts, to expensive websites
and paying to place virtual tours and ads on third-party real estate websites.
Time Frame
Marketing plans for a real estate company are often long-term projects. One example is known as "farming,"
which involves sending out monthly or quarterly mailings to a specific set of addresses over a long period.
The premise of farming is that a potential client, after repetitively receiving the company’s mailing, will call
when a need for real estate services arise. This also applies to marketing programs that involve sending
regular mailings to a client list.
In India, small real estate investors currently do not have as much scope as institutional investors. They can
hold multiple properties, but banks will generally not fund beyond a second home loan.
That does not mean they cannot invest beyond that from their personal accruals. They certainly have the
option of investing in rent-generating assets, which can fetch very decent returns if they have been
purchased wisely.
Despite the present limitations for small investors, a property investment can give the buyer protection
against inflation. Like gold, real estate tends to retain its intrinsic value. However, unlike with gold, it is
possible to earn a regular income on it.
Areas visited
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FIG 4.1
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FIG 4.2
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FIG 4.3
Location Map of ZARA Aavaas Sector 104, Dwarka Expressway, Affordable Housing
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FIG 4.4
Location Map of HCBS Sports Ville, Sector 35 South Gurgaon Affordable Housing
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FIG 4.5
Since the study had to be completed in the time span of two months where the field of study was vast,
another limitation was area of operation though I am not a resident of gurgaon it was tough for me to visit
areas which I had never heard of, I was assigned to locate builders, small agents and to make them
understand how internet advertisement can expand their business , it was difficult for me to make small
agents understand about internet advertisement who haven’t used computer’s throughout their life . while
locating agents use of internet was strictly banned thus we had to physically look for agents in different
localities by asking from people residing in that area .
We had to bring the visiting card of Agents we had visited and most of the small brokers owned tea shop ,
runned small business thus they never had any visiting card , another difficulty was that it was difficult to
introduce my association the NESTKEYS without any Identity card .
For all this reason I had restrict the sample size to 30 respondents which have been chosen randomly
Page | 31
Chapter: 5........Data Analysis And Interpretation
15
10
C B A
0
Recently 2-5 years More than
started years
Fig 5.1
Interpretation :
From the above survey it can be clearly seen that there are new agents who are entering the real estate
business out of 30 respondent 9 are new players and have recently started this business which shows how
real estate market is booming at a fast pace and the majority of the respondent are in this business for more
than 5 years which also indicates that they have got the return from that business which had made them stay
longer.
Page | 32
People Surveyed according to their role in real estate business
ROLE
Agent - 50
Builder - 40
Others - 10
Fig 5.2
Interpretation
One of the reason as to why there are more agents is their brokers and sub- brokers who are
categorized under agents , also in places like jessore road , Dumdum road, lake town (north
gurgaon), badshahpur, sohna road we find more agents then builders .
Around 50 % of the respondents were agents, 40 % were builders and 10% were sub-brokers who
are also called part time brokers.
Page | 33
People surveyed to know whether advertisement creates an urge for them to buy a
product?
18
No of respondents
16
14
12
10
8
6
4
2
0
yes no can't say
Options
Fig 5.3
Interpretation
This particular question was asked to find out their view as to see what is their view regarding
advertisement
Many respondent said yes because they use different modes of advertisement to promote their
business. Those agents who said no which were around 8 respondent still believed in word of mouth
and they didn’t promote their business as they got business through their initial reputation which
they had created in the market.
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People surveyed to Find whether they need to advertising their property or they do it
through word of mouth
NEED
YES -22
NO -8
Fig 5.4
Interpretation
Almost everyone believed that advertisement is necessary without which their business cannot run as
they see lot of competition in the market .
The other reason which make them advertise is number of agents and builders in a particular area .
so to get better contacts or a name in the market advertisement is required , respondent who said no
where those who believed in word of mouth .
Page | 35
Agents and builders surveyed to know how often they take the help of advertisement.
25
20
no of resondents
15
10
0
Very less Always Not required
options
Fig 5.5
Interpretation
This was a very interesting question for them and the answer which I got mostly was ‘Yes’ the
reason was there has been lot new construction which enables Builders and agents to advertise .
Also to find a place in the market to maintain the goodwill they had to advertise to keep themselves
updated.
Page | 36
Agents and builders surveyed to know which mode of promotion got them more
response. (those who prefer advertisement)
100%
% OF RESPONSE
0%
Internet
Television
Newspaper
others
MODES OF PROMOTION
Fig 5.6
Interpretation
People still believe Newspaper as the most trusted and preferred mode of advertisement if we talk
about other modes internet is booming at a quite fast pace though it is not able to catch the speed
newspaper but the soon a time will come when internet will become the most preferred mode
Other reason why internet mode is still lagging behind newspaper is that many agents are not
computer savy as they don’t have much knowledge about computers .
Page | 37
People surveyed to know their view regarding the current popularity of Internet
Advertisement (1 refers – very poor , 5 refers – very good )
5
POPULARITY RATING
0 2 4 6 8 10 12 14 16
NO OF RESPONDENT
Fig 5.7
Interpretation
After conducting this survey it was thus found from agents and builders point of view that currently
Internet advertisement is quite popular in the market generally agents who are using internet
advertisement find it quite user friendly and easy to use , whereas who hasn’t used internet
advertisement still find it to be quite popular as they hear it from their friends who are in this field.
There where agents who rated it as 1(very poor) as they had invested in online advertisement but
they didn’t got any response.
Page | 38
Agents and builders surveyed to know their preferred mode of advertisement
Newspaper -45
TV-5
Internet -35
Others-15
Fig 5.8
Interpretation
I got mixed responses as still 45% of respondent still believed newspaper as their preferred mode
due to reliability and trust factor , which they thought internet advertisement won’t provide.
Respondents who do internet advertisement said they will not switch to other mode of advertisement
as they find online ad as cost effective , comes in their budget , more visibility in terms of duration
of advertisement.
Page | 39
Agents and builders surveyed to know which online portal provided them with more
response ( if they advertise online)
OTHERS
ONLINE PORTALS
INDIA PROPERTY
99ACRES
MAGICBRICKS
% OF RESPONSE
Fig 5.9
Interpretation
This was asked to those agents who used internet advertisement as to find out which online portal
gave them more response their was good fight between Magicbricks and 99acres .
Thus is states that 99 acres and magicbricks are very close competitors of each other despite
magicbricks have upper hand because it falls under the times of india group
Page | 40
People surveyed to find out whether internet advertisement will become popular in
days to come
70%
60%
50%
% OF RESPONSE
40%
30%
20%
10%
0%
YES
NO
CAN'T SAY
OPTIONS
Fig 5.10
Interpretation
Most of the people believed that internet advertisement has emerged as a new media for
advertisement which provides a good impact
Most people who has used internet advertisement believed that it increases the sale of any product
and it had a good future ahead due to invent of so many technology .
Many believed that it will still take time to be the best mode of advertisement.
Page | 41
Chapter: 6........Findings and Conclusions
FINDINGS
Through survey it was found that are very few brokers who are computer savvy.
Many agents where were also found as sub-brokers who run their business through a tea shop &
misguiding the clients in their investment decision.
By research it was found that there are more brokers then agents due to which clients suffer a lots.
It has been found that mostly builders prefer Internet advertisement as their main source of
advertisement as compared to that of an agent.
Agents still rely upon Newspaper, Hoardings, Banners as a mode of their promotion to expand their
business
Very few agents completely rely upon online advertisement & they don’t have proper knowledge of
current interest rates.
Builder and agents in outskirt of Gurgaon have a little knowledge about internet advertisement .
Before buying any product people look in the internet about its features and cost to make a decision
whether to buy that product or not.
Magicbricks.com has a build a good reputation with those who have experienced its service.
CONCLUSION
There has been a significant change in the way small agents and builders operate. Advertisement has been
their main source to promote their business most agents and builders are changing their mode and switching
to Internet advertisement which comprises of so many benefits by doing this agents and builders are getting
a good responses, as nowadays people are spending more time in the internet as it provides everything in
just a click.
Though there has been a significant rise in online advertisement still Newspaper advertisement is still
hugely demanded as we all know newspapers over a period have built a strong level of trust and confidence
in the people which is unmatched by any other form of media.
Thus online media has its use as it is booming at a fast pace and is becoming the choice for agents and
builder to promote their business still it comes second after newspaper in terms of popularity, trust ,response
etc. therefore newspaper advertisement for advertising is the still the best medium to promote business and
it may take more approximately 4-5 years to become the most preferred mode of advertisement.
Page | 42
Chapter: 7........Recommendations
After doing the research it was found that 99acres is one of the main competitors thus Nest keys
should focus on providing more benefits to their existing as well new client.
Nestkeys should focus on small agents as well (mainly who are new and financially not strong) .
Magic bricks as an associate of nest keys have got a good brand image as it comes under Times of
India, so the company must put more emphasis on promoting their portal in local newspapers and
print media.
Builders or promoters who are satisfied with the service of Magic bricks should take some reference
from them and convert them into their clients.
Magic bricks should also introduce package of low amount which will bring in more advertisement
from agents who have recently started their business.
The company should Campaign in the outskirts of gurgaon and provide builders and agents about
how they can be benefited through internet advertisement.
Magic bricks as an associate of nest keys is one of the top online portal , as internet advertisement is
growing rapidly it should maintain its goodwill by providing its clients with offers and good after
sale service which can help them bring in more clients.
BIBLIOGRAPHY
Books Referred
Dr. Jai Narain Sharma, The discipline and its Dimension, Deep & Deep Publications Pvt. Ltd., New
Delhi.
Page | 43
Journals
Lan Ziyong, The Analysis Of Main Factors Influencing The Real Estate Marketing Strategy,
Chongqing, China: Chongqing University, 2006.
Yang Pao, Research On Real Estate Enterprise Marketing Strategy Innovation, Nanchang:
Nanchang University, 2010.
You-Cai Yang, Wl Jh Real Estate Project Marketing Planning Scheme, Changchun, China: Jilin
University, 2013.
Li-Xia Yan, “The Application Of The Experience Marketing In Real Estate Marketing,” Journal
Of Enterprise Economic, Pp.69-70, Nov. 2005.
Guo-Jun Liu, A Company's Marketing Strategy Of Real Estate Project Research, Changsha,
China: Hunan Normal University, 2014.
Zhang Gengquan, “Design And Implementation Of The Theory Of Real Estate Marketing
Planning Scheme,” Journal Of Commercial Economy, Vol. 10, Pp. 31-59,Oct. 2011.
Lei Chen, Ma Dejun, “Introduction To Real Estate Marketing Strategy And Innovation,” Journal
Of Information Science And Technology, Vol. 20, Pp. 477-478,Oct, 2010.
Websites:-
www.valueresearchonline.com
http://www.ebook3000.com/Investment-Analysis-and-Portfolio-Management---Solutions-
Manual_html
http://www.wepapers.com/Papers/Investment_Analysis_and__Portfolio_Management
http://www.experiment-resources.com/research-methodology.html
http://www.saching.com/Article/Factors-that-can-affect-investment-decisions-for-maximum-return-
on-investment
www.yahoo.com
www.google.co.in
www.rediff.com
www.magicbricks.com
www.tbsl.com
www.google.com
Page | 44
Appendix
Questionnaire
Name:
Age:
Sex:
Locality:
a) Yes b ) No
6) By which mode of advertisement you have got more response?(those who prefer advertisement )
7) Mark the popularity of internet advertisement on the scale of 5?(5- refers very good, 1-very poor)
Page | 45
8) Which mode of advertisement do you prefer in terms of Real estate? ( if they prefer doing
advertisement)
9) Which online portal has gathered you more response if you advertise online ?
10) Do you think internet advertisement will become more popular in days to come?
Other attachments
Image 7.1
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Image 7.2
Site picture of HCBS Sports Ville, Sector 35 South Gurgaon Affordable Housing
Image 7.3
Page | 47
Image 7.4
Image 7.5
Page | 48
Image 7.6
Image 7.7
Page | 49
Image 7.8
1 BHK 2 BHK
Payment Process
Type A Type B Type A Type B
5% of
At the time of Application 71225 72125 102700 103100 5%
TC
20% of
At the time of Allotment 284900 288500 410800 412400 20%
TC
6th Month from date of 12.5%
178063 180313 256750 257750 13%
Allotment of TC
Page | 50
12th Month from date of 12.5%
178063 180313 256750 257750 13%
Allotment of TC
18th Month from date of 12.5%
178063 180313 256750 257750 13%
Allotment of TC
24th Month from date of 12.5%
178063 180313 256750 257750
Allotment of TC
30th Month from date of 12.5%
178063 180313 256750 257750 13%
Allotment of TC
36th Month from date of 12.5%
178063 180313 256750 257750 13%
Allotment of TC
Total 1424500 1442500 2054000 2062000
Residential Property: Residential property means a housing unit used for living purpose and is not used for
carrying any kind of business operations. A residential property can be of following types: -
Apartments
• Builder Apartments
• Penthouses
• Group Housing/Society Flats
• Duplex's
• Studio
Land/Builder Plots
Villas/Kothi's/Town Homes
Independent Floors/Builder Floor
Page | 51
Commercial Property: - means a property which is used for carrying out any kind of business activity. The
term commercial property (also called investment or income property) refers to buildings or land intended to
generate a profit either from capital gain or rental income. A commercial pr operty can be of following
types: -
Industrial
• Manufacturing Industry
• Service Industry
Institutional
• Hospitals
• Educational Institutes
• Community Centers
• Clubs
• Commercial
• Local Retails Markets
• Malls
• Hotels
• Office Space/ Business Parks
• Shop Cum Offices (SCO)
SEZ
• Single Product
Multiple Products
o IT SEZ
o Export SEZ
o Any Specific SEZ
TYPES OF AREA:
Carpet Area: The actual area you use. The area on which you can put a carpet on, that is the area of inner
side of wall to wall. The carpet area is generally around 70 -75% of the Super built up area.
Built- Up Area: Over and above the carpet area and includes the space covered by the thickness of the
inner and outer walls of the flat it is generally around 10% more than the carpet area.
Thus, Built up area is Carpet Area + Area of walls and ducts + 1/2 the Area of terrace.
Super Area: Super Area is normally estimated by architects as Built-up Area plus the proportional share of
the common amenities like building corridors, circulation areas, lobby, elevators, stairs, community halls,
shafts, security/servant quarters, motor room, park and recreational areas, basement, sub -station, garbage
Page | 52
chutes, window projections, generator areas or any other shared services area etc. Some developers even
include swimming pool and club house while charging for these services separately as one time membership
fees.
MEASUREMENT PARAMETERS:
A property is generally measured in the following units: -
Square Feet (Sq. Ft.)
Square Meter (Sq. Mt.)
Square Yard (Sq. Yd.}
Acre
Hectare
Marla
Kanal
In North India Land is generally measured in terms of square yards or square meter and apartments/flats are
generally measured in terms of square feet.
SALES TERMINOLOGIES:
Pre - Launch Sales: Also known as soft launch means sales of the project without 100% approvals for the
development of the project off (at e there are many builders who are promoting prelaunch sales of their
project by giving the advantage of price to the buyer who are willing to buy the project without 100%
approvals. As soon the project is launched either the prices are revised upwards or the apartments at good
locations are already sold.
Launch Sales: Means sales of the project which has 100% approvals normally in Northern India the sales
of the project start in the pre- launch phase only.
FAR & FSI: FAR means Floor Area Ratio & FSI means Floor Space Index and is used for residential
properties. Both of them mean the total area that can be constructed in a particular piece of land for eg.
Suppose If the FAR of a property is 1.75% and the total land area is 10 acres then the total area that can be
constructed in square feet will be: -
10 acres * 43560 sq. ft. = 435600 sq.ft.(Converting to sq.ft.)
1.75% (FSI}*435600 = 762300 sq.ft.(Multiplying FAR of the plot with total sq.ft. area of the plot)
So the total area that can be constructed is 7,62,300 sq.ft. Higher the FSI, lower is the price of the property
as more houses can be built on the same piece of land and vice versa
Land Coverage: Means the maximum land that can be covered for construction the smaller the size of the
plot greater is the land coverage area the bigger the size of the plot the smaller is the land coverage area.
Density: Refers to the population that is allowed in one acres of land. Talking about Gurgaon the current
density allowed is around 250 PPA (Person/ Acre) and in Noida & Greater Noida the current density which
is allowed is around 600 PPA (Person/ Acre). In Gurgaon the average size of the entire apartment made in
the complex should be around 1900 sq.ft. and in Noida the average size is around 1200 sq. ft.
Page | 53
Floor Plan: Means the layout of how the apartment will look like and the size of the unit/apartment it
shows how the layout of the different rooms will be their sizes and connectivity. A particular floor plan also
mentions that a particular size is available in which particular block of a building.
Cluster Plan: Also known as tower layout it is the layout of the entire building; it shows the layout of all
the apartments on the floor and number of apartment on the floor the locations of the stair case lobby lifts
etc. It also helps in analyzing the distance between the apartments and the merging of the different sizes.
Site plan: Means the layout of all the buildings in the complex.
Allotment Letter: It is a document issued by the builder to the buyer of the property mentioning the
number of the unit or apartment being allotted to the buyer and details of how the payments have to be
made.
Builder Buyer Agreement: It is the most important document in case of primary bookings it's the
agreement that contains all the term s and conditions of the purchase of the property the total prices of the
property and the payment schedule. It is signed by both the buyer and the builder. There are two copies of
the same in original; one is retained by builder and the other by the buyer.
EWS: - Means Economic Weaker Section. The government has made it mandatory in some group housing
projects and Townships to build houses particularly for selling it to individuals belonging to Economically
Weaker Sections of the society.
Lease Rent: - Lease rent is charged in Noida & Greater Noida only. As all the properties are on lease hold
with the authority these charges are collected by the builder form the buyer and deposited with the authority.
Normally the lease rent is paid for a period of 99 years and it is believed the authority will come up with
some provision in future and will take nominal charges and will convert the lease hold into freehold
property. Lease rent is a mandatory charge.
PLC: - All the apartments in the complex don't enjoy a premium location some apartments are better than
others so to differentiate between an apartment at a good location and bad location the builder charges
Preferred Location Charges(PLC). PLC is not mandatory. There can be different types of PLC: -
Floor PLC: Builder charges extra payment for apartment on lower Floor. This is a concept being
followed in Northern India in rest of India PLC's are charged for higher floors.
Landscape/Garden PLC
Corner PLC
Page | 54
Road Facing PLC
Club House Facing PLC
Pent House PLC
Top Floor PLC
Any Specific Unique PLC
Golf Course Facing PLC
Power Backup Charges: - are mandatory charges builder provides 2 types of power backup: -
•100% Power Backup: - means you can use all you appliances in case of a power failure
•Specific Power Backup: - means a builder provides you with a connection with the upper limit defined for
ex. 2 KVA or 5 KVA thus restricting the use of the electricity.
In both the cases a separate electricity meter is installed and the buyer has to pay according to the actual
consumption of the electricity
EEC: -Electric connection charges are being charged for the laying of the electricity wires and points. EEC
is mandatory charges
FFC: - Fire Fighting charges are being charged for the installation of fire-fighting equipment. FFC is
mandatory charges
Car Parking Charges: - builder's charges separately for the car parking
Club Charges: - also known as CMRC i.e. Club Membership Registration Charges these are one time
charges for the club membership. Club Charges may be mandatory or not, varying from project to project.
In case of some good club houses an annual fees is also payable. The club membership cannot be sold.
IFMS: - Interest Free Maintenance Security Deposit is a fund maintained for major maintenance of the
project in the future. It's a onetime mandatory charge to be paid. The money collected from this is deposited
in a bank account but the residents of the complex don't get the interest generated on this. Major
maintenance for example includes - failure of power backup generator any major repairs to be carried in the
building complex or facade of the building.
Stamp Duty & Registration Charges: - these are the charges payable by the buyer to the government for
taking the possession of the property; different cities have different registration charges. The government
keeps on changing these charges from time to time. The charges applicable at the time of registration are to
be borne by the buyer.
Circle Rates: - these are the mini mum rates at which the registration of the property is done for a particular
area; the government has fixed the circle rates for particular localities within the city. The way government
is changing the policies it is expected that the actual rates at which the property is sold will match the circle
rates in 10 -15 years which will lead to no black transactions in future.
Service Tax: Till date the Service Tax is applicable on 25% of the Basic Selling Price and is charged at the
rate of 12.36%. However, if we calculate the Service Tax for 100% Basic Selling Price of the property, it
Page | 55
comes out to be 3.09%
With effect from March 1, 2013, the effective rate of service tax on under-construction commercial
properties (irrespective of carpet area) has been increased from 3.09% to3.7%
The principal amount in the repayment of a home loan can be added to the 80 C limit of Rs1 lakh for tax
savings. The interest component of home loans is allowed as deduction under Section 24 B for up to
Rs1.5lakh in case o f a self-occupied house. Incase the house is in the joint name of your spouse and you
(joint loan), each one can avail of Rs1.5 lakh interest component deduction. The best part is that this limit I
is only for self-occupied house. If you have property which is rented out, you can deduct the full interest
paid on the home loan. The rent o n the property does become part of your in come . If the rent is lesser than
the loan interest, it will lower your overall tax liability. In any case, interest on loan offsets the rental income
which is good for tax savings. For joint loan and self-occupied home, it is important to show the loan
repayment by both husband and wife as they can avail of Rs1.5 lakh each on loan interest deduction. If the
EMI(equated monthly installment) is being paid from one account by ECS , pay your contribution of loan
repayment to your spouse by cheque. It will help in case o f IT assessment. In case your spouse does not
have any income, only you can take Rs1.5lakh loan interest deduction.
You can avail of both the benefits of Home loan and HRA if you are paying rent on your accommodation
and have also taken a home loan on your own home. This is subject to your home receiving rental income
which is taxable .Union Budget 2013-2014 raised tax deduction limit byRs1 lakh for the first time home
loan takers to promote the housing sector. A person taking a loan for his first home from a bank or a housing
finance corporation up to Rs25 lakh during the period1 -April-2013 to 31-March-2014 will been titled to an
additional deduction of interest of up to Rs1 lakh. If the limit is not exhausted, the balance may be claimed
in 2015-16. This deduction will be over and above the deduction of Rs1.5 lakh allowed for self-occupied
proper ties under section 24 of the Income-tax Act. The move is likely to promote home owner ship and
give a fillip to a number of industries including steel, cement, brick, wood, and glass besides providing jobs
to thousands of construction workers.
PAYMENT PLANS:
Payment schedule is provided by the builder mentioning details of how the buyer needs to pay for the
property and at what stages the other charges are payable by the buyer. The different types of payment
schedule are: -
Time Link Payment Plan (TLP):
This is a payment plan which is normally scattered over a period of 3 years. The buyer of the property needs
to pay for the property according to the schedule provided by the builder the buyer of the property has to
pay irrespective of the fact that the construction of the property is happening or not.
Assured Return:
This is more of a sales technique used by the builder to increase sales. It is on the lines of the down payment
plan or Flexi Payment Plan, where 95% or 60% of the payment respectively has to be made within 30-45
days of the booking of the property. The builder doesn't provide any type of down payment rebate.
The price of the property is according to CLP plan. Instead of down payment rebate the builder gives
assured return to the buyer for a particular period. For example if the cost of the property is 10 lacs and the
assured return is 12% P.a. (for two years) i.e. 1% per month then the buyer of the property will get Rs.
10000/-per month for two years.
NRI Investment
Ans: Only a Resident Indians, NRI (Non Resident Indian), PIO (Person of Indian Origin), OCI (Overseas
Citizen of India) can buy property in India.
Resident India: An Indian citizen who is ordinarily residing in India and holds an Indian passport.
For all official purpose the Government of India considers Indian National who stays for more than
182 days in a year in India as a Resident Indian.
NRI's: An Indian citizen who is ordinarily residing outside India and holds an Indian Passport. A
NRI is an Indian Citizen who has migrated to another Country. For all official purpose the
Government
of India considers Indian National away from India for more than 182 days in a year as an NRI.
Person of India Origin (PIO): A person who or whose any of ancestors were Indian nationals and
who is presently holding another country's citizenship/ nationality i.e. he/she is holding foreign
passport. Any person who at any time held an Indian Passport; or he or either of his parents or
grandparents were born in or were permanently residing in India as defined in Government of India
Act 1935 and other territories that became a part of India thereafter, provided, neither of them were
at any point in time a citizen of Afghanistan, Bhutan, China, Nepal, Pakistan and Sri Lanka; or who
is a spouse of a citizen off India or a person of Indian origin as mentioned above.
Overseas Citizen of India (OCI): Also known as dual citizenship of India. A person registered as
Page | 57
Overseas Citizen of India {OCI) under section 7A of the Citizenship Act 1955. A foreign national
who was eligible to become citizen of India on 26.01.1950 or was a citizen of India on or at any time
after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947 and his/her
children and grand-children provided his/her country of citizenship allows dual citizenship in some
form or other under the local laws is eligible for registration as Overseas Citizen of India (OCI).
Minor children of such person are also eligible for OCI. However if the applicant had ever been a
citizen of Pakistan or Bangladesh he/she will not be eligible for OCI.
Q2. Does NRI/PIO/OCI require permission of The Reserve Bank to acquire residential/ commercial
property in India: -
Ans: No Permission is required by anyone.
Q3. What are the Types of property a NRI/PIO/OCI can buy in India?
Ans: NRI/OCI/PIO can buy any residential or commercial property in India; however they cannot buy
agriculture land in India.
Q4. Are there any restrictions on numbers of properties that can be bought and sold by
NRI/PIO/OCI?
Ans: There are no restrictions in terms of numbers of properties that can be bought by NRI/PIO/OCI;
however they can sell only two properties in a financial year.
Q5. How are the payments made by the NRI/PIO/OCI?
It is mandatory for NRI/PIO/OCI to make payments only from the below options for buying Property in
India:-
NRE Account: - Known as Non Residential External accoun these are special kind of accounts for
NRI's. This account can be opened with any private or nationalized bank of India.
NRO Account: - Known as Non Residential Ordinary account these are special kind of accounts for
NRI's. This account can be opened with any private or nationalized bank of India.
FCNR Account: - Known as Foreign Currency National Rupee Account these are special kind of
accounts for NRI's. This account can be opened with any private or nationalized bank of India. It's a
kind of fixed deposit account and one can maintain account in a choice of 6 currencies: USD, GBP,
EUR, JPY, CAD and AUD.
Wire Transfer: - It means transfer of payment directly from the Foreign Bank to the desired Indian
bank account. Is this case a wire transfer remittance receipt is issued by the foreign bank confirming
the amount transferred in Indian bank account. Foreign bank charges a wire transfer fee which is
around 25$ minimum or is some cases a percentage of the amount to be transferred whichever is
higher.
Q6. Can NRI/PIO/OCI sell their purchased property without the permission of Reserve Bank?
Ans: Yes. Reserve Bank of India has granted general permission for sale of such property to the following
categories:-
Resident Indian
NRI
Page | 58
PIO- with approval of RBI
OCI- with approval of RBI
Being developed on 20,000 hectares with wide roads, underground cabling and drainage system, the city
offers amenities and infrastructural facilities of international standards. Among them are, Reputed
Educational Institutions, Shopping Centres, Medical facilities, Aesthetically-developed Theme Parks and
Entertainment Complexes- and even a 222 acre international designer Golf Course. You couldn't ask for
more!
Greater Noida is also poised to develop as the next major IT destination. National Capital Region (NCR)
ranks no. 3 in terms of the number of software firms companies based in it after Mumbai and Bangalore. In
case of the ITES sector, the NCR leads with 20% of the total number of companies located in this region.
Since the NCR has emerged as a hub for IT industry, Greater Noida could emerge as an IT destination of
the future leveraging its proximity to the national capital and availability of quality urban infrastructure
including housing.
Greater Noida is now looking for a mutually beneficial association with investors who could become part of
its vision to conceive and execute international standard -schools, colleges, hospitals, offices, amusement
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parks and other projects. This association would be your destiny through your vision.
Just 35 minutes from Delhi by the state-of-the-art Taj Expressway, Greater Noida boasts of smart
differentials:
Privatized power
Smooth and wide roads
Abundant clean sweet water
Underground drainage
Unfailing optical fibre-based telephone network
Trade Mart for handicraft promotion
Impeccable law and order
Landmarks with Global Identification
The city has emerged as the darling of property investors and real estate companies.
So what drives investment in Gurgaon? Real estate agents across the city agree that seamless connectivity
and availability of social amenities is acting as a catalyst in attracting investment across the board.
The city has undergone a lot of infrastructural upgrade in the past couple of years that has directly enhanced
Return on Investment (ROI) and is further accelerating the growth in the region .The areas such as Sohna
Road, Dwarka Expressway and Golf Course Extension are few areas that are currently seeing high real
estate activity.
Sensing a great opportunity, Gurgaon has become a prime attraction for multinationals and domestic
industrial units to establish their bases in this growing city.
Gurgaon market has witnessed a gradual shift form affordable housing to luxury segment. The percolation
of sturdy wealth has led to the rise of affluent class, which in turn has made Gurgaon an ultimate destination
for luxury living.
Gurgaon remains promising for office space, and there are good prospects for more major global players
setting up operations here in near future. On the whole, this augurs well for the residential property market,
more or less assuring relatively healthy absorption of residential space in the times to come. The new
infrastructure initiatives of the Government will also play a crucial role for Gurgaon's residential and
commercial property sectors.
A green building is one which uses less water, optimizes energy efficiency, conserves natural resources,
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generates less waste and provides healthier spaces for occupants, as compared to a conventional building.
CERTIFICATION
Green Townships are typically characterized by long periods of construction, which take place in phases.
The Certification of IGBC Green Townships is divided into three stages depending upon the percentage of
development completed.
Stage II - 75 % of infrastructure and 25 % of residential development of the total project area is constructed
and in operation
A Green Home can have tremendous benefits, both tangible and intangible. T he immediate and most
tangible benefit is in the reduction in water and operating energy costs right from day one, during the
entire life cycle of the building.
Tangible benefits
Intangible benefits
ELIGIBILITY
IGBC Green Homes Rating System is a measurement system designed for rating new residential buildings
which include construction categories such as
Individual homes
High rise residential apartments
Gated communities
Row houses
Existing residential buildings which retrofit and redesigned in accordance with the IGBC
Green Homes criteria
LEED INDIA
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The Leadership in Energy and Environmental Design (LEED-INDIA) Green Building Rating System is a
nationally and internationally accepted benchmark for the design, construction and operation of high
performance green buildings.
LEED-INDIA provides building owners, architects, consultants, developers, facility managers and project
managers the tools they need to design, construct and operate green buildings.
LEED -INDIA rating system provides a roadmap for measuring and documenting success for every building
type and phase of a building lifecycle.
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