A PROJECT REPORTON

Real Estate

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR AWARD OF THE DEGREE BACHELOR OF BUSINESS

ADMINSTRATION

SESSION:2011-2013

SUBMITTED TO: SUBMITTED BY:

MS. NIPUN CHAWLA

(27819103911)

ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Real Estate

Industry”. The work would not have been possible to come to the

present shape without the able guidance, supervision and help to me by

number of people.

With deep sense of gratitude I acknowledge the encouragement and

guidance received by my organizational guide MS. and other staff

members.

I convey my heartful affection to all those people who helped and

supported me during the course, for completion of my Project Report.

NIPUN CHAWLA

MBA (Sec-C)

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EXECUTIVE SUMMARY

Real estate has proved to be a real engine of growth. The real estate

sector in India is emerging as the next engine of economic growth going

by the fact that it is the second largest employer next only to agriculture.

It has significant linkages with several other sectors and over 250

associated industries. According to estimates, every rupee invested in this

sector results in 78 paisa being added to the GDP. Accordingly, a unit

increase in expenditure has a multiplier effect and the capacity to

generate income is as high as five times. For instance, if the economy

grows at the rate of 10%, the sector has the capacity to grow at 14% and

generate 3.2 million new jobs over a decade. The sector size is close to

$12bn and grows at 30% per annum. Presently, it is contributing 5% of

the country's GDP and is expected to rise up to 6% within three to four

years.

The present project has been carried out with the objective of analyzing

the financial aspects related to the real estate.

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TABLE OF CONTENT

ACKNOWLEDGEMENT I

CERTIFICATE II

EXECUTIVE SUMMARY III

CHAPTER NO. PAGE NO. CHAPTER 1: INTRODUCTION 1.1 : COMPANY PROFILE 6-9

1.2 : REAL ESTATE 10 1.3 : REAL ESTATE GROWTH 11-12 1.4 : PRESENT SCENARIO 14-15 1.5 : FUTURE SCENARIO 16-27 CHAPTER 2 : REAL ESTATE FINANCE 28-30 2.1 :REAL ESTATE INVESTMENT 31-34 2.2 :EXTERNAL ENVIRONMENT 35-38

2.3 :INTERNAL ENVIRONMENT 39-402.4 :ESCROW ACCOUNT MECHANISM 41-46

CHAPTER 3 : OBJECTIVES OF STUDY 47 CHAPTER 4 : RESEARCH METHODOLOGY 48 4.1 :SECONDARY DATA

CHAPTER 5 : DISCUSSIONS 49-57 5.1 :REAL ESTATE MARKET

CHAPTER 6 :CONCLUSIONS 52-53

CHAPTER 7 :BIBLIOGRAPHY 54

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COMPANY PROFILE

We are a Group of Young, Enthusiastic, Focused and highly motivated

Professionals, having good hands of experience in construction group

housing. Narang Constructions & Financiers Pvt. Ltd. was incorporated

in year 1987, with a clear vision to be the top most housing and

construction company in the city.

As a result of it's initiative NCF transformed itself in to high performance

strategic business unit. The entire team of NCF is committed to deliver

quality at par with the best in the industry maintaining the most exacting

standards and offering a complete peace of mind & Luxurious Life style.

At NCF, We strongly believe in Quality and Customer delight. We also

understand that "TIME IS MONEY". We are particularly conscious of

meeting all our deadlines well in time. Excellence in our trademark,

superlative is not just an idea. We transform the creative ideas of our

customers into reality. At NCF, we maintain a perfect balance between

Imagination, Elevation, Layout & Construction.

By having a state-of-the-art facilities and equipments along with high

caliber skilled work force NCF has been able to live up to the

expectations of all our customers till date during and even after

completion of all our previous projects. We also aim high to maintain the

same level of comfort in future too.

Now the entire team of NCF feel proud to announce and present you an

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other exciting and most advance housing project at Kundli. Narang

Constructions & Financiers Pvt. Ltd. is an ISO 9001:2000 certified

by JAS-ANZ.

M/S. NARANG CONSTRUCTIONS & FINANCIERS PVT. LTD

Incorporated With the Registrar of Companies, NCT Delhi & Haryana

vide Registration No.55-29460 with the main object of real estate

developers, promoters, infrastructure developers financers. The company

is having its office at Pitam Pura. The company is having seven directors

namely Mr. S.C.Narang , Mr. Raj Pal Narang, Mrs. Sumitra Narang, Mrs.

Asha Narang, Mr. Arun Rathi, Mr. Jugal Kishore Gupta and Mr. Jawahar

Lal Goyal. The management of the company has decided to develop a

group housing project in the NCR area of Kundli. The company has

already acquired land measuring 11.437 acres in the Kundli and develop

and construct a group housing project at the proposed site. The land is

duly got registered in the name of company and payment for the purchase

has already been made. The LOI has already been received from Govt. of

Haryana Kundli is having all infrastructural facilities. The site is ideal as

Kundli is situated at NH-1 which is also nearest to Delhi. Kundli-Sonipat

is going to become a hub for education and the centre Govt. "recently

announced to establish a 11M at Sonipat. Govt. has establish a education

area of 2500 acres which will be available for national as well

international universities and other educational institutions. The area is

already attracted well known builders and developers which are

developing the area very fast.

The company is already in the business of construction and development

of Malls and developed and sold out two mall in Delhi.

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REAL ESTATE:

The term real estate is defined as land, including the air above it and the

group below it, and any building or structure on it is also referred to as

realty. It covers residential housing, commercial offices, and trading

spaces such as theater, hotels, and restaurant retail outlets, industrial

buildings such as factories and government buildings. Real estate

involves the purchase, sale and development of land, residential and non-

residential buildings. The main players in the real estate market are the

landlords, developers, builders, real estate agents, tenants, buyers etc. The

activities of the real estate sector encompass the housing and construction

sectors also. The real estate sector in India has assumed growing

importance with the liberalization of the economy. The consequent

increase in business opportunities and migration of the labor force has, in

turn, increased the demand for commercial and housing space, especially

rental housing. Developments in the real estate sector are being

influenced by the developments in the retail, hospitality and

entertainment (e.g.: Hotels, resorts, cinema theater) industries, economies

services and information technology (IT) enabled services etc. The real

estate sector is a major employment driver, being the second largest

employer next only to agriculture. This is because of the chain of

backward and forward linkage that the sector has with the other sectors of

economy, especially with the housing, construction and commercial

sector. About 250 ancillary industries such as cement, steel, brick, timber,

building material etc are dependent on the real estate industry.

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REAL ESTATE IS A GROWING SECTOR IN INDIA

Real estate in India will continue to rock. Profound economic suggest that

the realty sector would grow at 30% per annum to reach to $45 to 50

billion by 2010 from the existing $12 billion. To achieve this growth real

estate in India would require huge investments over the next five years.

By 2015 it is projected that the market size would grow to $ 90 billion.

Estimated suggest that the urban housing sector would require

investments to the tune of $25 billion (Rs 1.10 lakh crore) over the next

five years. Prices have remained buoyant as new construction lags.

According to surveys there is a shortage of 19.4 million units (12.7

million units in rural areas and 6.7 million units in urban areas) in the

country about three years ago, which will require real estate in India. Real

estate in India will trigger economic growth infrastructure development

and enabling government policies would help trigger growth. Real estate

in India will help high economic growth has fuelled the demand for real

estate. Cities continue to attract interest from IT and ITES companies that

are either establishing a base or are looking to expand which will give

rise to real estate developer in India. It is the suburban locations that are

witnessing development activity due to easier availability of land

construction of large floor plate and offer of built to suit facilities thus

helping housing construction company in India. According to one

estimate the IT and ITES sector are creating 200,000 jobs per annum

which itself will create a demand in commercial space of 15 million

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square feet. Besides it will generate a huge demand for residential flats.

So more need for luxury residential apartments in India.

Real estate in India assumes that 25 % of the work force joining the

IT/ITES sector required independent housing there would be demand for

50 million sq ft of residential accommodation every year to meet the need

of the workforce joining the IT/ITES sector alone. The demand has been

aided by the ease in documentation and formality of property registration

in India. It leads to boost property developer in India. The Indian realty

sector would see unchanged interest from N R I’s aided by the relaxation

in FDI norms in real estate. The government has also helped by

permitting banks to advance home loans to NRIs. The report

acknowledges that the government had also played a pivotal role in the

development of this sector .

It had aided the sector by giving income tax benefits to consumer and

benefits to developers. It initiated the rationalization of stamp duty and

repealed the Urban Land Ceiling Act in 9 states. A number of state

governments are moving towards computerization of land records.

Real estate in India has a bright future .The report also pointed out certain

issues, which need to be addressed by the government to ensure rapid

growth. Some of the issues are absence of large listed companies in these

sectors, which has affected fund flow. Foreign still cannot buy or sell

undeveloped land, and reassessment of the legal aspect to stamp duty and

rent control. At last, changing demographics, low interest rate regime,

rising disposable income, and fiscal incentives have provided huge

demand for housing. Further nuclearization of Indian families has

accelerate the demand for mortgages and for fresh housing thus give rise

to more real estate developer in India.

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Political reforms in relation to real estate: The government is quite

rational when it comes to infrastructure and development in the country

as it is required to achieve and maintain a growth rate for the economy.

The real estate sector being directly related to it, is being given due

importance. The government has made suitable amendments in the FDI

regulations, taxation structures and various land acts in order to attract

more foreign investment into the country.

Economic factors: The lower interest rates and ease of credit availability

is fueling the demand for real estate in the country. This scenario coupled

with the huge potential for consumer credit penetration in India is

favoring the real estate sector.

Demographic factors: Demographic factors like increasing literacy

rates, higher disposable incomes, and increasing urbanization in the

country are important factors propelling the demand for real estate in the

country. The above factors are going to generate huge demand for

residential space, which comprises 80% of the total real estate demand in

the country.

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PRESENT SCENARIO OF REAL ESTATE IN INDIA

The real sector in India today witnesses a wide spectrum of changes that

slowly but surely is expected to make India in to a preferred destination

for real estate activity. The real estate market in India is opening up.

There are still some barriers to real estate development like unclear titles,

tenancy reforms and low property taxes. Two major steps taken by the

Government will however be key catalyst in fueling growth in real estate

sector in INDIA. Now with reputed builders like DLF, ANSAL API etc

and international property consultants joining the fray, this image has

strengthened and evolves into a professional corporate image. Recent

moves to allow 100% Foreign Direct Investment in India. FDI would be

in integrated township which would include housing, commercial

premises, hotels and resorts, while the urban infrastructure would

comprise roads and bridges mass rapid transit system and manufacture of

building material. The minimum average that can be developed is 100

acres designed keeping into consideration the local byelaws and

regulations. FDI is not allowed in retail sector. Currently, real estate

prices have stabilizes to a great deal as a role played by speculation has

started declining. There a lot of change being introduce in the Indian real

estate sector especially with the cheap labour, pool of people. Other

major event is the introduction of real Estate Investment Trust (REIT).

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Currently mutual fund are not allowed to have direct exposure in real

estate but can make debt and equity investment in the company. The

Indian version of REIT-REIS (Real estate investment scheme) would

enable investment by small investors in the real estate sector and thus

earn dividends on the rental income being paid. The fiscal incentives

introduce by government introduce 3 years ago have unleashed the

market forces. The credit of housing has gone up and interest rates have

come down to 8-9% average. With fiscal incentives and factoring

inflation the real interest rates on housing loans is very less. This has

brought in a sea change in the profile of the home purchaser across the

spectrum. The average age of the home buying customer has been

drastically reduced. It has been found that young working people in early

and mid 20 also buying residential flats. The other major changes

witnesses in the real estate industry currently are the reorganization of

country status itself. The Government of India has made it mandatory that

3% of the incremental deposits of the banks would be deployed to the

housing industry. Today real estate office market is booming IT AND

ITE ‘s segment. With lower operating costs being the driver office

property have moved from Central Business Districts to suburbs to Class

I cities and this market is continue to expand in Tier II and tier III cities.

Real estate sector is still facing the main problem of high stamp duty in

Indian states. These range in most Indian cities between 10% to 15%

Some states even have double stamp incidence first on land and then on

its developments even National Housing and Habitat Policy 1998

recommend stamp duty of 2-3%. It needed to be reduced by taking the

recommendation into consideration which is mentioned in the report

otherwise this increasing rates of stamp duty and land cost will give rise

to parallel economy which lead to huge loss of government revenue.

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FUTURE SCENARIO OF REAL ESTATE IN INDIA

In future the real estate sector will be in very good shape as the demand

for both residential and non-residential property is increasing and in

future more houses need to be developed in urban and rural areas as

census of 2001 indicates that urbanization rate of 27.78% is expected to

go up to 41%(550 million) in the next 20 years (population of 1350

million by 2021).However, Indian government Habitat Policy(NHHP)

envisages that by the year 2012 the housing shortage should be removed

and everybody should have a house of his own and to meet this target the

estimated investment involved is approximately Rs 400000 crore or say

US $800 billion by 2012.In future the demand for real estate will likely to

touch around1055 million sq ft by 2010 and by this date capital

requirement will have bloated to $68 billion and market will require $ 30-

40 billion more in future with most companies tying up their expansion

plan. The C&W says urban India alone require 12 million housing units

with scope of 400 townships in 5years across 30-35 cities each with 5

lakh population and Indian has potential to grow to those levels as FDI

flows into more land intensive sector like retail and manufacturing as

there is a shortage of 20 million housing units till

2010.Cushman&Wakefield says smaller towns like Patna, Surat,

Lukhnow, Coimbatore, Vijayawada etc have immense potential in

commercial and residential sector and by 2015 there will be 45 such cities

from 25 odd cities. The US alone committed $ 2 billion for Indian real

estate over next 18-30 months. In real estate sector 23 million sq ft of

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new space came in to market with additional 50 million sq ft expected by

2009.

AMAZING BOOM IN COMMERCIAL SECTOR:

Future of commercial sector is boom. There is a great demand for office

building in India. The demand for new office space alone has grown from

estimated 3.9 million sq ft in 1988 to over 16 million sq ft in

20045.Cumulative demand for office space in India between 2005-2008

is estimated to be in excess of 85 million sq ft. This represent annual

growth rate of 14.5% over the next 3 years or approx.20 million sq ft/year

and approx 80% of demand is created by IT AND BPO sector. ITES &

BPO segment register a growth of 54%. NASSCOM & Mckinsey study

has predicted that I T Es sector in India will provide additional job for

over 1.1 million people by 2008, which translate into space requirement

of approx.100 million sq ft. Retail is considered the world largest private

industry with total sales of over US $ 6.6 trillion with close to 12 million

outlets. India has the largest retail density in the world .It is estimated that

presently additional 46 million square feet for malls, multiplex is being

added in India out of which 32 million sq ft is spread over across 7 major

cities. In future 45 malls with over 9.5 million sq ft of retail real estate is

expected to come up in Tier II cities like Jaipur, Chandigarh, Ludhiana,

Nagpur, Baroda, Kochi etc by end of 2007.It is expected that government

will soon permit FDI in retail and this would further increase the demand

for shopping malls, multiplex etc. However opening up of FDI in retail

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trading will not necessarily cause rent to rise as their demand will be

offset by additional stock.

Spiraling land prices (sign of overheating and excessive speculation):

The land prices have really shot up in the last 2-3 years. Builders continue

to get enough buyers for whatever absurd prices they quote. Now, that is

a very strange thing when seen in the Indian market perspective. India is a

very price-sensitive market. Whatever you sell you have to give the

consumer a good value for money. So, when such people make a beeline

for things priced exorbitantly, there may be large amounts of speculative

investment money entering the market. Also, people now assume that

property prices moving up is a sure thing. There is nothing called a sure

thing in investing and this is a sign of overheating.

Uneven price growth: Prices of real estate across the country, or even

within cities, will have their own unique demand and supply factors. This

needs to be understood in detail. A number of transactions and also

corporate land bank values are ignoring this basic tenet of real estate

investing.

Questioning the capability to deliver: Although there have been huge

plans of development in all the areas of real estate development whether

residential, commercial, office, retail or SEZ, various questions have been

raised on the execution capability of the developers in delivering the

promised product within the specified time period.

Oversupply: With the real estate story getting big in India, major plans

are afoot for various types of real estate developments in big cities and

small towns. There have been concerns of an oversupply situation arising

2-3 years from now.

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Still unorganized: India's property market remains unorganized and

underdeveloped. This creates risk for investors. In the absence of a clear

title to property, the risk of litigation is high. For those foreigners who

invest in India via real estate investment trusts, there are no rules on the

marking of their stakes to market or on whether they must pay stamp duty

on transactions.

Relation to the stock market: The true origin of this bubble-like

situation may be traced to the stock market boom. The Indian stock

market has been witnessing a non-stop bull run for an unusually long

time. During the last couple of years, share prices have surpassed all

expectations. The present situation can be compared to Japan's real estate

crash in 1991. Prior to the crash, both the stock market and the property

market were on fire. Profits from the stock markets used to be transferred

to the property market and vice versa. The same thing is happening in

India as well.

MAJOR PLAYERS OF REAL ESTATE MARKET IN

DELHI COMPETING MAXHEIGHT CONSTRUCTIONS

UNITECH LIMITED

Unitech is the largest listed real estate company in India with a market

capitalization of over US$5bn. It operates in India and exports engineered

construction products to the Middle East. Unitech was among the first

players to enter organized infrastructure development. Unitech works

closely with various state governments to develop SEZs across the

country. New Kolkata International development project is one of the

largest infrastructure development project undertaken in the country.

Unitech has tied up with International Amusement to create "E-city" in

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Noida. Its business strategy is to build a Pan-India presence while

maintaining a leadership position in each city of India.

DLF UNIVERSAL LIMITED

DLF is a leading player in Indian real estate industry with six decades of

experience. Since its establishment in 1946, it has developed 21 urban

colonies aggregating 5,816 acres, as well as an entire integrated 3,000-

acre township which is popular as DLF City. Future projects include

development of 100,000 acres over the next few years and it aims to

become the single largest real estate company in the country.

ANSAL PROPERTIES & INFRASTRUCTURE LIMITED

Ansal Properties & Infrastructure Limited (APIL), one of the major

players in real estate industry, is promoted by the Delhi-based Ansal

Group engaged in civil construction and real estate development in India

and overseas. In March 2006, APIL tied up with Malaysia-based facilities

management company Faber Group Berhad in a joint venture to foray

into healthcare facilities management. HDFC realty bought 33% of Ansal

SPV. APIL has big plans to invest Rs.30,000cr in the next 3-4 years to

build 16 townships.

As the focus on infrastructure development by the government has been

strengthening, growth prospects of Indian real estate sector looks bright.

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A study by housing development finance reveals that India is short of 20

million housing units. Deutsche Bank researchers forecast that by 2030

India will need up to 10 million new housing units per year. Another

driving factor for the industry is SEZs, which come with tax exemptions

like 10-year corporate tax holiday. Besides this, the fifth most attractive

market in the world, the retail market of India, has also been contributing

significantly on a large scale for the growth of the sector. Leading

national and global players have big plans to invest in the infrastructure

and construction of the retailing business.

All these positive signals indicate that there is huge growth potential for

the real estate industry. Joint ventures and consolidations will become the

order of the day in realty space. However, there are challenges like

fragmented industry with less transparency and high transaction costs.

The condition can be improved with the increase in the professionalism

of the industry and flow of organized money into the sector. Given its

huge growth potential, real estate can be vindicated as the best investment

avenue for long-term investors.

The following is the overall assessment about the real estate industry in

India-

Real estate sector is a major contributor to GDP (Gross domestic

product of India), over the last decade, the average household income in

urban areas has grown at a CAGR of 5%. According to estimates, 80% of

the real estate developed in India is residential space and the remaining

20% comprises of offices, shopping malls, restaurants and hospitals.

According to the 10th Five Year Plan, there will be a shortage of 22.7

million housing units by the year 2007. The changing lifestyles of

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Indians and better incomes have led to the development of retail and

hyper malls. This, in turn, has led to the demand for space from the retail

sector.

Real estate has proved to be a real engine of growth The real estate

sector in India is emerging as the next engine of economic growth going

by the fact that it is the second largest employer next only to agriculture.

It has significant linkages with several other sectors and over 250

associated industries. According to estimates, every rupee invested in this

sector results in 78 paisa being added to the GDP. Accordingly, a unit

increase in expenditure has a multiplier effect and the capacity to

generate income is as high as five times. For instance, if the economy

grows at the rate of 10%, the sector has the capacity to grow at 14% and

generate 3.2 million new jobs over a decade. The sector size is close to

$12 bn and grows at 30% per annum. Presently, it is contributing 5% of

the country's GDP and is expected to rise up to 6% within three to four

years. Along with the residential property, the sector has also witnessed a

spurt in demand in commercial property mainly driven by fast-growing

IT and ITES services along with BPO boom. According to estimates, 42

million sq. ft. of space will be required every year till 2010 only in these

services in cities like Delhi, Bangalore, Chennai, Hyderabad and Pune.

As the cost of land in leading metros is skyrocketing, developers are

getting interested in developing townships in Tier II cities and industrial

towns where the growth of real estate is relatively slow. It is expected that

in the very near future, even these cities will witness abnormal prices.

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THE KEY DRIVERS IDENTIFIED BEHIND THIS GROWTH

ARE-IN CASE OF RESIDENTIAL PROPERTY:

Higher affordability (higher salaries, easy credit); tax benefits to

borrowers; existing shortages; social structural changes in urbanized areas

(splitting of joint families).

In case of Commercial: IT/ITES sector expansion, the local

consumption story leading to higher growth in corporate earnings; order

books full; corporates expanding, multinationals entering India to service

huge “middle class”.

In Retail sector: Getting organized (3% of retail is organized as against

17% in China); foreign brands and local brands seeking visibility, new

formats being developed; disposable incomes rising; younger population

earning and spending well.

In terms of infrastructure Indian real estate sector is relatively poor

to global standards: If we compare Indian real estate sector with the

global real estate industry, we fare very poorly in terms of our

infrastructure. While in the US, no matter where you go, you have access

to high quality infrastructure (drinking water, well-planned roads,

greenery, power, communications, healthcare, education, etc.), here in

India, even our signature cities are crumbling. We have not been able to

create alternate cities in the manner that is required so as to release the

pressure on the few that we have. Until new towns/cities come up, the

few existing ones will continue to provide sub-standard quality of living

and at very high prices. Another sharp contrast is in the sphere of public

housing. While more than 50% of Mumbai lives in slums, most of

Singapore lives in (subsidized) mass housing provided by the

government.

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Whether this boom will sustain or not, the answer could be both a yes and

a no. Yes, because of the above mentioned positive drivers. No, because a

lot of factors/events can spoil the party; such as, an increase in interest

rates globally and locally, a political directive (overseas) to reduce

outsourcing to India, the emergence of China as an alternate outsourcing

hub, a major terrorist attack, the policies of the government with respect

to land and real estate supply, property prices becoming unaffordable,

etc.Already in some locations it appears that the cost of land is way too

high in comparison to the finished product, and there is a price limit

beyond which resistance can set in. Therefore, there is a risk of having

unsold inventory at a high cost. In some sectors, there is a re-emergence

of the “investor” in large proportions. Hence, when the stock comes in the

market for absorption in large volumes, will there be actual users to

absorb it? That is still to be seen. On the retail front as a whole, though

we (as a country) have barely scratched the surface of organized retail, I

feel that in some locations there is an excess supply of mall space coming

up. With terribly poor efficiencies and very high running costs, not to

mention a complete lack of differentiation, it’s a matter of time before

these malls will come back in the market to be repositioned. Today, there

is a feeling of success seeing “footfalls” by the thousands, which reminds

me of the internet days “eyeballs”—plenty of visitors, poor conversion

into shoppers.

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BUYERS PERSPECTIVE:

1. Quality of Construction – Obviously when one buys a property he

makes sure that the quality of construction is good. Everyone while

buying a new product wants to buy quality stuff. Same applies to the

property. Every buyer wants to buy a well built house.

2. Pollution Free Environment – The immediate surroundings of the

property is always evaluated by the buyer. These days developers give

due importance in making the surroundings beautiful with innovative

and creative landscaping. They involve landscape architects from

different corners of the world to give their customers the best. The

NCR is becoming more and more popular among home buyers

because of its greenery and pollution-free environment.

3. Water Availability – Water Availability, power backup and safety

and security are some very important factors which people do consider

while purchasing the property. All these factors are hugely responsible

for the transition of people from Delhi to housing complexes in NCR

as many colonies of Delhi faces problem of shortage of water and

power failure while availability of these essential facilities are ensured

in housing complexes by the respective developers.

4. Occupancy - Due to increasing crime this factor is becoming more

and more important for the buyers. They don’t want to settle down in

such a place where hardly anyone else lives. People prefer to stay in a

reasonably well-occupied housing complex. But its also true that

people don’t prefer to stay in highly populated areas as it was

observed in the case of Shipra Sun City, Ghaziabad where 5000

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families living in one single housing complex fight for space and car

parking place.

5. Suitability of Home Type – Nowadays due to the wide range of

options available people can afford to be choosy. Now they don’t need

to compromise on anything. They don’t buy a property till the time all

of the essential things match their requirements. Developers do pay

attention to the different requirements of different customers. Some

want a flat on the second floor while some want a flat with two

bedrooms. All these requirements are tried to be met by the

developers.

6. Sport Complex / Recreational Facilities – “All work and no play

makes Jack a dull boy”. People have started believing in this concept.

Now each parent wants that within the complex his/her kids get all

kind of sports to play. Even adults want different recreational facilities

to be available in the housing complex, which may help them in

eliminating work stress.

DEVELOPERS PERSPECTIVE :

1. The major external factors which people consider while purchasing

the property are Price, Availability of loan and Proximity to

workplace.

2. The major In-Locality factors which people consider while purchasing

the property are Quality of construction, Availability of water and

Pollution-free environment

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GLOBAL SCENARIO IN REAL ESTATE INDUSTRY

Real estate industry in developed countries has been mature while it has

been a growing market with huge potential in developing countries like

India. Anuj Puri , Managing Director of Trammell Crow Meghraj Private

Limited opines: "Globally, these funds are very popular, especially in

developed economies such as the US, Australia, and Japan. They have

given excellent risk-adjusted returns. As per NAREIT, the five-year

compounded annual growth rate (CAGR) on such funds is 12.1%. In

Japan, this is 15.5%. This compares well with equity mutual funds. For

real estate, the risk is lower than equity." Real Estate Investments Trusts

(REITs) in the US are the trusts established by wealthy promoters who

usually invest in shopping malls, office spaces, commercial complexes,

hotels, and warehouses. The origin of REITs dates back to 1960 and has

gained popularity over a period of time. These trusts make profits either

by rental income or by capital gains resulting from sale of property. To be

qualified as an REIT, the company is liable to distribute 90% of its

income to the shareholders. This will in turn help the company to get

exemption from taxation. Based on the source of income, REITs are

categorized as equity REITS, which earn by owning and renting the

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properties; Mortgage REITS, which earn by way of loans; and Hybrid

REITS, which earn by both the means. REITs offer ample liquidity to the

investors as REITs shares are usually listed on the major stock exchanges.

REAL ESTATE FINANCE:

Property prices in India are rising fast, and not just in the biggest cities.

As the tech boom spreads across the country, as more Indians buy homes,

and as the economy grows at faster than 8% a year, real estate is

attracting more investors, many of them from abroad.

"India is one of the last few countries where there is primary demand for

real estate rather than individuals trading up," says Rajiv Sahney, who

runs the India operations of New Vernon Advisory, a $1.4 billion New

Jersey hedge fund. Merrill Lynch forecasts that the Indian realty sector

will grow from $12 billion in 2005 to $90 billion by 2015. "India is the

most exciting real estate market in Asia," says Michael Smith, head of

Asian real estate investment banking at Goldman Sachs. "It's one of the

last major countries in Asia with an improving market."

That improvement worries some. Concerns about an asset-price bubble

have led the Reserve Bank of India to raise the risk weight age on real

estate loans extended by banks, and mortgage rates have gone from 7.5%

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to about 9.5% as a result. That's still well below the 15% rates that most

Indians were used to, but it's enough to raise questions about whether the

speculation of the past year and a half, which has driven land prices up by

30% to 100% and real estate stocks up as much as 2,000%, may be

coming to an end.

The run-up in prices has attracted the likes of Morgan Stanley, which has

invested $68 million in Mantri Developers, a midsized construction firm

in Bangalore, and Merrill Lynch, which invested $50 million in

Panchsheel Developers, a regional builder. Foreign companies have also

poured money into funds that invest in Indian developers. GE

Commercial Finance Real Estate, for example, has invested $63 million

in an $800 million fund that is building IT parks, and Calpers and the

Oregon Public Retirement Fund have invested $100 million each in the

IL&FS India Realty fund.

Real estate funds set up to invest only in India have already raised more

than $2.7 billion. And new funds worth as much as $4 billion are being

planned by J.P. Morgan, Britain's Knight Frank, and other foreign

investors. Warburg Pincus, the largest private-equity investor in India,

says it is spending nearly a third of its time studying opportunities in this

area. And Deutsche Asset Management recently hired someone to head

its real estate activities in India. "As the largest active managers of real

estate funds in the world," says Edouard Peter, head of Deutsche Asset

Management Asia Pacific and Middle East, "we expect to be actively

raising and investing funds in real estate in India."

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It isn't going to be a cakewalk. "It's not easy to do business in India," says

Seek Ngee Huat, president of GIC Real Estate, an arm of the Singapore

government that is planning to invest several hundred million dollars in

Indian real estate over the next two years. "It's difficult finding suitable

partners who have the same long-term objectives, as most firms are small

and family run."

Already margins have shrunk. "The vast majority of the planned real

estate funds are targeting annual rates of return of between 25% and 30%,

but I'm skeptical that the vast majority will cross 20%," says Mumbai real

estate advisor Rajiv Bhatia.

To achieve the target returns, several funds are focusing on second-tier

towns and second-tier developers. "Many investors are going to lose their

shirt here, as it's an opaque market, and a wrong partner can easily do you

in," says S. Sriniwasan, executive director at Kotak Mahindra Realty fund

in Mumbai. There's also bureaucracy and corruption to deal with. Says

Ashwin Ramesh, who runs a boutique fund called Primary Real Estate

Advisors: "There are a couple of hundred malls currently being

developed across India, and predictions are that only 10% will be

successful. Yet every developer feels his mall will be among the

survivors."

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REAL ESTATE INVESTMENT

A recent report by the Chamber of Indian Industries pointed out that

globally real estate is and should always be considered as an income-

generating asset. Indeed, real estate is an attractive investment option, as

it gives regular returns and also provides capital appreciation. This

scenario is presently unfolding in India.

Before the start of the 1990s, real estate was always looked upon as a

place to invest money, since prices were always escalating because of

limited supply and heavy demand. Developers were building residential

and commercial projects, which were sold out even before the

construction began. Besides, during the course of construction, the

property changed hands several times before the completion of the

project, with further price increases.

But, those days are gone with the crash of the housing market in the mid

1990s. The higher the rise in real estate prices, the steeper the fall. This

was true, especially, in the metros, e.g. Mumbai and New Delhi. The

supply increased enormously and the demand remained steady, as prices

had gone beyond the realistic levels. This decline in prices stabilised

towards the end of the decade as rates became more reasonable and

affordable.

In the meantime, the housing finance industry started to expand rapidly,

making home loans easily available to everyone. Besides the housing

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loans boosting the market demand, the tax benefits provided by the last

four consecutive budgets have also encouraged the end-users and

investors alike. Growing incomes of urban buyers coupled with fiscal

incentives and falling interest rates, has seen disbursements by Housing

Finance Companies grow at over 35% per annum in the past few years,as

shown in fig 1.

Figure I

To evaluate real estate as an investment option, use the following

guidelines.

Check out the various loan options to raise the finances.

Ensure that there is scope for infrastructure development around the

property under consideration.

Another factor is the location and the proximity to schools, hospitals,

markets, public transportation, etc.

Check out the rental returns and capital appreciation potential in the

area where the property is located.

Actual property taxes to be paid.

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Finally, ensure that you are able to maximize the tax benefits to the limit.

The rental rates in India are among the highest in the world as returns on

investment on the capital value of the property. Figure II compares the

rental returns for various cities all over the world with the Indian cities.

Investment in commercial property, where the returns are 10 to 15 per

cent, is a proven option, while residential property is always in demand

for leasing.

Figure II

Since the 9/11 attack in the US, investments in Indian markets have

gathered pace. India has encouraged Non Resident Indians (NRIs) with

tax incentives and relaxation of foreign direct investments (FDI) rules.

The sudden change in sentiments is clearly visible in India’s bulging

foreign exchange reserves, which are at a record high of over 60 billion

US dollars. And the RBI has relaxed the rules further for NRIs with

respect to repatriation of foreign exchange on real estate investments.

Besides being a safe destination, India offers 10 to 12 per cent returns,

perhaps the highest in the world. 30 per cent of all high major real estate

transactions in Mumbai are accounted by NRIs.

Moreover, with increasing volatility in stock markets and falling interest

rates, many investors have started considering investment in commercial

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and residential properties. The bottom-line is that this is the time to go

shopping for property; as the market has started firming up already. As

the organised market develops, real estate as an investment is one of the

better options available today. As Naresh Malkani, CEO of

Indiaproperties, says, “Considering the current property rates and housing

loan interest rates, it is worth investing in real estate in India.”

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EXTERNAL ENVIRONMENT

Commercial which ranks next only to food and clothing amongst basic

human needs has always had and continues to have important socio-

economic implications. Especially in countries like India which are in

the throes of rapid development housing has come to assume a crucial

role as it contributes significantly to the national economy and nation

building. Arguably, housing has been the only industry in recent times

which has not only withstood the recessionary pressures, but has also

shown a consistent and healthy growth and if the future is to be

interpreted in light of the macro picture, the best is yet to come.

Housing and GDP are interlinked and contribute to each others’ growth.

It is, therefore, no wonder that ‘Housing for All’ is invariably proclaimed

as a national priority by all major political parties and adopted as a goal

by the Government of India in the National Housing and Habitat Policy

document. Integrated housing development not only satisfy the basic

human needs but also facilitates holistic development within the

parameters of a planned welfare economy. Safe, secure and affordable

housing by any means increases employment and educational

opportunities for individuals and enriches communities leading

to a better civil society and better quality of life. Besides the direct

contribution which housing makes to GDP it increases social capital

which is intelligible wealth that comes with good social network at the

heart of which lies clean environment, hygienic living and quality

housing.

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India, with its billion plus population, still witnesses an acute shortage of

dwelling units. Despite sharp increase in the Usable Housing Stock from

70 million units in 1961 to170 million units in 2001, the shortfall in 2001

was estimated at 19 million dwelling units, although unofficial estimates

peg the figure at higher levels. This has occurred due to the high

population growth, especially in urban areas. Studies reveal that the

population in the five most populous cities of India, namely Mumbai,

Kolkata, New Delhi, Chennai & Hyderabad are set to increase at a

scorching pace of more than 50% between 1995 and 2010 and by 2025

the number will be more than double. The 2001 Census reveals that the

decadal population growth in the urban areas is one and a half times

higher than the national average. All these statistics point to a high level

of migration of population from rural and semi urban areas to a more

urbanized form of settlement. The percentage of population staying in

urban areas have steadily climbed from 23.34% in 1981 to almost

28% in 2001. As on 2001, more than 5000 centres have been identified as

“urban centres” in India.

Coupled with the demand for dwelling units, another major factor which

has contributed to the buoyancy of Housing activity is the affordability of

properties. This, in turn, has been the result of a combined effect of

stabilized property prices, higher level of incomes and lower cost of

borrowings. In fact the boom witnessed by the Housing Finance sector

can be heavily attributed to these factors.

Housing has often been called the “Engine Of Domestic Growth” of the

Economy. An investment in Housing and construction triggers of a series

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of investments in various sectors. From Heavy Industries like Steel,

Cement to industries like Paint, Furnitures and even to Small Scale

Industries, Housing affects as many as 269 industries directly and

indirectly. Housing ranks third amongst 14 major industries in terms of

total linkage effect in the Economy. The linkage effect, particularly with

reference to the Steel and Cement Industries was also underlined by the

Government in the Economic Survey of 2002-2003.

In terms of contribution to the GDP, for every rupee invested in Housing

and construction, 78 paisa gets added to the GDP. Housing ranks fourth

in terms of the multiplier effect on the Economy, ahead of sectors like

transport and agriculture. The Investments in the Housing sector has

steadily increased from Rs. 1150 cr in the First Plan period to more than

Rs. 1,20,000 cr in the Ninth Plan period. Estimates of the Tenth Plan peg

the figure at about Rs. 7,00,000 cr.

Perhaps the greatest socio-economic impact of Housing is in employment

generation. Housing is the second largest employment generator in the

country after Agriculture. A host of vocations and professions derive their

livelihoods from Housing, either directly or indirectly. Construction

workers, builders, developers, suppliers, civil engineers, valuers, property

consultants, furnishers, interior decorators, plumbers – the list is virtually

unending. In a developing nation like ours, Housing can be the solution to

the most nagging problem that any Government faces – that of

employment. Apart from these various indirect benefits that the economy

derives from Housing, the Government itself is a direct beneficiary in

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terms of collection of stamp duty rising out of acquisition of real estate

assets.

It is therefore not surprising that the Government has left no stones

unturned to support Housing activities. The continued tax incentives on

Housing Loans to trigger a higher off-take in credit for retail Housing is a

reaffirmation of the Government’s committment to aid the sector. Other

initiatives like extension of benefits u/s 80 I to mass housing projects,

scrapping of the Urban Land ceiling act, implementation of the

Securitization Act are all in line with the same objective of propelling

growth through Housing. However, it may also be added here that there is

scope of further improvement in various areas , mainly with reference to

streamlining of laws related to construction activities and rationalizing of

stamp duties on transfer, securitisation, etc.

When one looks at the future, the ‘big picture’ appears to be very bright.

A comparison of the Mortgage Finance to GDP ratio places India at the

foot of the table with a penetration rate of less than 2% , lower than the

9% of Thailand, 36% of Singapore and 51% of USA. There is thus much

room for the upside and a long way to go.

With the population of India steadily increasing, it will not be long before

India overtakes China and emerges at the top position. Demographic

experts have predicted India’s working age population – the segment

which has the highest demand for Housing – to be the highest. This

ensures that the demand for Housing is a long and sustained one. Rapid

strides in Infrastructure development like the Golden Quadrilateral

Project and the National Highways Development Programme, which have

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progressed at an impressive speed is bound to trigger off a fresh round of

Housing and habitation through further development of semi urban and

rural areas as well as setting up of new Satellite Townships.

To sum up, a reference to the Goldman Sachs Report on the Development

of the “BRIC Economies” can be made, wherein India is projected to

have the fourth largest Economy in less than 30 years time from now. In

order to achieve that level of growth, it is imperative for the Housing

Industry to continue its contribution to the economy at an increased pace

in the future as well.

INTERNAL ENVIRONMENT

The last three budgets have provided enough incentives and the drastic

reduction in interest rates, making easier for the common man to achieve

his distant dream of a home come true. But on the supply side very little

has been done to ensure that developers who are the producers of homes

get access to the required funds. It is conferences like these that helping

us carve out solutions for a better tomorrow.

The trade and industry was fairly to blame in the 80’s when there were

not many professionals in the building trade. It is still one of the largest

unorganised sector in the country, but slowly companies deeply

committed to housing are becoming more responsible, accountable and

transparent.

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Like other industries, real estate developers are also processors and

producers of goods (i.e. the home) which is a tangible product and has

enormous cost from concept to completion. It is impossible for any

developer firm to bear the entire cost, hence the need for real estate

financing. The customer preferences have moved away from under

construction to nearing completion or completed projects and hence the

investments in the projects have changed.

Strangely other industries get financed by the same financiers for process

as well as end product (i.e. the automobile industry). The banks and

Financial Institutions have exposure to the producers and the purchaser

but when it comes to developers the very same Financial Institution shy

away. Now coming to the issue of funding developers – norms have been

laid out and rating should be made mandatory. The one time pure vanilla

product “construction finance” is no longer available and it has out lived

its purpose. Now the time has come for innovative products as the market

conditions have changed in the past 5 years. Receivable discounting - is

one option where projects in advanced stages can be financed. The

balance amount receivable against sold flats can be financed by Housing

Finance Institutions/banks (practice which is being followed) to infuse

liquidity and enable developers to complete the project within stipulated

time period.

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ESCROW ACCOUNT MECHANISM

During the boom period between 1991 and 1995 developers had invested

heavily in land by diverting funds from other project and taking on huge

liabilities from banks and financial institutions. With the crash in the

markets the value of these investments were eroded. Most banks and

financial institutions today have frozen all their lending to the developers

community. The main reasons for this being the inability of the

developers to repay their debts. To instill confidence in the lenders the

developer community would need to organise themselves and bring about

greater transparency in their operations. In this respect developers must

explore the ‘Escrow’ mechanism to tap funds from Banks and Financial

Institutions . Under the Escrow mechanism the loan amount is decided

after doing a thorough due diligence of the accounts of the developer. All

transaction (inflow and outflow) are routed through a designated Escrow

Account, the control in which remains entirely with the lender. The

progress of construction is monitored by the appointed auditors who

submit periodic progress reports. Disbursements are made strictly on the

basis of the progress reports. This system will not be successful without

the co-operation, commitment and support of the developer community.

Position on project / Venture Capitals – The financiers takes a position

like private placement of area to be constructed at discounted rates and

funds the project. On completion of the project or during the construction,

the developer sells on behalf of the institution and gets their investment

back with return. All loans originating from these sales should go to the

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institution which funded the project. This the financiers can do after due

diligence as listed below:

RISK EVALUATION AND MITIGATION

Essential to establish counter – party risks and mitigate them before

offering construction finance to borrowers.

Finance available to builders with established track record.

Minimum Net worth Criteria

Track record of successful completion of projects

Established source of cash flow and revenues

Loans are usually project specific.

In addition to builder risk, saleability of project depends on

Location

Demand & Supply of flats

Pricing

Opinions from consultants are sought to mitigate these risks.

Due diligence of all transaction documents including

Title documents

MOU for land

Power of Attorney

Municipal clearance

Line of Credit - Like working capital advanced by banks, in this case,

builders with track record are able to work out their financial requirement

and line of credit is approved by Housing Finance Institution. This is for a

minimum period of 4 –5 years renewable on a year on year basis. This

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covers all the projects of the developers. This can be availed after the

institution is satisfied about the following items-

CRITICAL LENDER REQUIREMENTS

Builder to obtain statutory approvals prior to loan disbursal

Loan to be secured by mortgage of the property of the proposed

project.

Property should have clean title

Property should be easily marketable

STRATEGIC FACTOR ANALYSIS

Both serious academic research and informed business activity will be

enhanced by reliable collection of data relating to housing and

commercial real estate. Housing data, including prices, volumes of

existing and new housing transacted, housing starts, vacancy rates and

household formation rates, as well as other demographic data, segmented

by metros, states and at the national level need to be collected frequently

and in a reliable manner by local and central authorities and disseminated

widely. Real estate commercial data would be more or less the exclusive

domain of the private sector.

USE OF IT IS VITAL

Here India has an opportunity of leapfrogging ahead of a number of other

countries by harnessing its comparative advantage in information

technology. In some of the more developed countries online databases of

different kinds of real estate (office, retail and industrial/warehouse) with

data on city-wise vacancy rates, capitalization rates, the local economic

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situation, job and household creation help firms, investors and

businessmen make informed choices.

THE DISCIPLINE

Links with urban planning and regional economics, on the one hand, and

finance and macroeconomics on the other would go a long way in a better

understanding of the economy, its monitoring, regulation, management

and forecasting. It will also promote appraisal and valuation techniques.

In India, provision of housing credit may be a supply side issue since

banks cannot properly evaluate lending risks in the absence of

development of credit and risk assessment systems, and databases on

credit benchmarks and credit scoring. It is vital to develop these risk

management systems on the basis of sound data and proper, widely

available techniques. All these steps will promote analyses and research

that could inform domestic or foreign investors to evaluate markets and

carry out risk assessment for purposes of property development and

investment. The establishment of the discipline of real estate economics

would help in the dissemination of a common language of discourse and

promote standardised procedures, both necessary for national market

development.

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REAL ESTATE –DELHI AS THE TARGET MARKET

Delhi is now more or less saturated and the high demand for residential

properties has increased rates beyond the reach of middle class. As a

result, the suburban towns within the NCR; Gurgaon, Noida, Faridabad

and Ghaziabad have become destinations for new residential projects that

offer affordable quality housing to the middle class as well as luxury

housing for high end users. As these suburbs are now increasingly

generating employment, they will decide the future growth pattern of the

NCR.

The business and trader class still largely dominate old residential areas

in west and northwest Delhi. Similarly the large multi-storey societies in

East Delhi – in mayur vihar and Patparganj – have found preference with

the service class. The blue-collar segment remains limited to apartments

and society developments while big and small traders occupy the whole

of west Delhi, including Rohini. The elite class, in terms of social status,

i.e. politicians, bureaucrats and celebrities, restrict themselves to central

and south Delhi. Suburban areas like Noida and Gurgaon have developed

as alternative housing solutions and are inhabited mostly by professional

and service class people, as well as an increasing upper middle class

segment.

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Gurgaon offers a good quality of living with many high-end residential

projects by private developers. These new developments offer

uninterrupted power supply, community and health care centers along

with facilities like a swimming pool, clubhouse and other services. As per

industry estimates, projects with approximately 5000 dwelling units have

been announced in Gurgaon. Since it will be maturing as an independent

city, occupancies will improve but in the present context, it is an

oversupply situation.

Noida has experienced rising prices in its existing commercial, retail and

residential real estate. The new developing residential sectors are along

the Greater Noida expressway. Occupancies in Noida are good and prices

are looking northward. It is a good destination for the middle class, as far

as accessibility, social and physical infrastructure and growth perspective

are concerned.

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OBJECTIVE OF THE STUDY

To find out the reasons for transition of people from Delhi to National

Capital Region (NCR).

To find out the perception of people about the cities included in NCR

namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad

To know the degree of importance of various factors which people

consider while purchasing a house.

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RESEARCH METHODOLOGY

DATA COLLECTION METHOD:

Data was collected by using secondary methods of data collection.

SECONDARY METHOD

1) Magazines on Property

2) Internet sites on Property

3) Internet websites of popular property developers of India

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DISCUSSIONS

REAL ESTATE MARKET

Construction sector has been the focus sector for some time as its impact

on the economy is big by virtue of its being a huge employment

generator. The real estate market is booming. Its growing at around 12%

per annum.

Today its boom time in the real estate market and homebuyers couldn’t

have asked for a better opportunity to buy a home. Indian developers are

now not talking of anything less than world class. Infrastructure and

economic development of some cities as well as the housing shortages are

driving the boom. There is a fundamental change in the approach of the

buyer, developer and the government. They all are seeking quality

development. The middle class demands the best that money can buy.

With the competition in the market, developers have to deliver the best

within specified time frames and the government, discharged from the

duty of construction has to keep everyone’s interest at heart.

The Major reasons for boom in the real estate market are:

EASY AVAILABILITY OF LOAN AND LOWER INTEREST

RATE

There is easy access to loans. The housing finance has posted a growth of

29 percent in the last fiscal, touching 53,685 crores. Further, interest rates

on housing loans have come down and are much lower, between seven to

eight percent as compared to 13-14 percent five years ago.

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AFFORDABILITY

Another major reason for boom is that housing in India has become more

affordable in recent times. A decade ago, a house cost nearly 15-20 times

an individual’s annual salary. Today the cost of a house has come down

to just about three to four times an individual’s annual pay package.

INCREASE IN NUMBER OF NUCLEAR FAMILIES

In the past, owing a home was a dream realized only after retirement.

Largely because people looked at it as a means of providing for their

children, having themselves lived in a joint family setup. Joint families

are progressively getting included in the pages of history book even in a

country like ours. Not surprisingly the rise in the number of nuclear

families is pushing demand for housing further to cater to a generation

that is not averse to taking risks. Nor are they hesitant when it comes to

paying a price to realize their dreams

INVESTMENT OPTION

Competitive offers by home loan companies combined with good quality

projects developed by reputed builders having a number of amenities

have made investing in properties very attractive Wherever there is

growth and opportunity, investors are bound to be around and

traditionally real estate has been a safe investment option. Property is

looked upon by many as an investment option that appreciates

substantially when compared to other traditional tools of investment.

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MIGRATION OF INDUSTRIES

Another major reason for boom in the real market is the migration of

industries to smaller towns leading to rural progress. With villages

turning into towns and towns becoming metros, the property market is

growing steadily. This revolution has directly resulted in greater demand

for not just housing but also for the overall real estate market with

heightened demand for better infrastructure, transportation facilities,

entertainment zones, shopping malls, multiplexes and more.

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CONCLUSION

The major external factors which people consider while purchasing the

property are Price, Availability of loan and Proximity to workplace.

1. The major In-Locality factors which people consider while purchasing

the property are Quality of construction, Availability of water and

Pollution-free environment.

2. Perception of people about different cities of NCR

Location wise Gurgaon and Noida are adjudged the best by the

respondents

Business opportunity wise Gurgaon due to the mass presence of

BPO company and offices of MNC’s and Noida due to its

proximity to Delhi are consider good by the majority of

respondents.

In Quality of living again Gurgaon and Noida leads the pack but

out of the two Gurgaon is better due to the existence of Higher and

upper-middle class people in large number.

In Law and Order all the places are bad as per the respondents but

out of the five Gurgaon is the best.

As far as infrastructural development is concerned Greater Noida

enjoys good reputation among the respondents of all the three

cities.

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3. In totality, both Location as well as Affordability together account for

more than 95 % of the total responses.

4. In Gurgaon major reasons other than affordability and location, to

purchase the property were proximity to workplace and healthy

environment.

5. In Noida and Ghaziabad other major reasons were almost the same -

desire to own an own house as well as need for better facilities.

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BIBLIOGRAPHY

BOOKS & JOURNALS

Real Estate in India , JM PUJARI, Manav Publication, 2006

INTERNET LINKS

www.unitechgroup.com

www.narang constructions.com

www.ansalspropertiesltd.com

www.maxheight.com

www.eldecogroup.com

www.omaxe.com

www.parsvnath.com

www.gurgaonproperties.net

www.realestatencr.com

www.gurgaonrealestate.com

www.estatedeveloper.com

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1.) Marketing strategy of the company over its competitors.

2.) 4 p’s of marketing.

3.) Specifications are superior thn others,it is just adjoining thn gt

road.

4.) 75-80% for the landscape area.

5.) Sesmic building have been designed for sesmic zone 5 wheras it

fall under zone 4.

Study of factors affecting consumer purchases with respect to marketing

strategy of firm.

++ To study the effect of marketing strategy of firms on transit of people

from delhi to ncr.

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