A PROJECT REPORT

ON

“CONSUMER BEHAVIOUR IN THE REAL ESTATE INDUSTRY (choice of

location) with special reference to:

SUBMITTED BY:

SUBMITTED TO:

ACKNOWLEDGEMENT

I take immense pleasure in completing this project. The project on ANSAL

has been full of learning and sense of contribution toward the organization. I

would like to thank ANSAL for giving me an opportunity of learning and

contributing through this project. I also take this opportunity to thank Mr.

Ankur Budhiraja (marketing faculty) under whose guidance this project is

successfully completed.

A successful project can never be prepared by the single effort of the person

to whom project is assigned, but it also demand the help and guardianship of

some conversant person who helped the undersigned actively or passively in

the completion of successful project.

TABLE OF CONTENTS

EXECUTIVE SUMMARY

Chapter 1-INTRODUCTION

Chapter 2-COMPANY PROFILE

Chapter 3-OBJECTIVE OF THE STUDY

Chapter 4-RESEARCH METHODOLOGY

Chapter 5-DISCUSSIONS

Chapter 6-DATA ANALYSIS

Chapter 7-MAJOR FINDINGS OF THE STUDY

Chapter 8-CONCLUSION

Chapter 9 - ANNEXURE

O BIBLOGRAPHY

O QUESTIONNAIRE

EXECUTIVE SUMMARY

INTRODUCTION

Earlier people used to search for a new home within Delhi but now things

have changed tremendously. People looking for a new home have started

focusing on the upcoming NCR area comprising Gurgaon, Noida, Greater

Noida, Faridabad and Ghaziabad. There are numerous factors responsible for

this change, which have been identified and analyzed during the research

and the same has been indicated later in the report.

OBJECTIVES

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.

STEPS

Understanding the objectives and requirements of the project clearly.

Prepared a questionnaire keeping in mind the objectives to be

achieved. Accordingly questionnaires were made:

Housing (See Archive 1)

Searched for busy commercial places, occupied housing complexes

and under-construction housing complexes located in Gurgaon,

Noida, Greater Noida, Faridabad and Ghaziabad. Obtained

Permission to conduct surveys in shopping malls and housing

complexes.

Conducted survey with the help of a questionnaire in shopping malls

and occupied housing complexes and carried out in depth interviews

of the sales manager of under construction housing complexes in

different cities of NCR

Analyzed the data collected, through tables and charts in MS Excel

Drafted the report.

LIMITATIONS

Study was restricted to Gurgaon, Noida, Greater Noida, Vaishali and

Indirapuram.

Study was restricted to occupied housing complexes, shopping malls

and under-construction housing complexes.

INTRODUCTION

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.

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.

COMPANY PROFILE

Ansal API was established as a result of a dream, shared by its visionary

founders. A dream that was to, radically improve the lifestyle standards of

the citizens by building world class real estate solutions.

After four decades of spectacular growth Ansal API is at a stage where the

company has acquired immense experience, consolidated and established

assets- physical and intellectual and at the same time retained youthful

energy & zeal. With foundations entrenched in the solid bedrock of technical

expertise and financial stability its pinnacles are rising new heights with

foresight and innovations for future requirements of resurgent India.

Ansal API as an organization can be best envisaged as a creator of man

made social infrastructure, where modern life blooms, in collaboration with

the environment. The ascent of Ansal API to the top of the Real Estate acme

is a direct product of Mr.Sushil Ansal's foresight and his dynamic

leadership. Ansal API, the corporate manned by professionals at all levels

with its strong base and lineage is now in a state of renaissance; all the

companies of Sushil Ansal Group will now be under one banner i.e. the

Ansal API.

The new "Ansal API" identity, is the first communicator of this phase of

resurgence, excellence and modernity. The rectangular shape signifies

solidity, cohesiveness and strength, the red colour stands for passion, heat,

energy, dynamism & purity and the black colour signifies the proposed

amalgamation of Ansal Township and Projects Limited into Ansal

Properties and Infrastructure Limited. The slogan, ' Building lifestyles

since 1967', encapsulates their heritage and vision in creating a better life for

Indians in various spheres like - homes, offices, places of entertainment,

hotels, shopping malls and educational institutions.

With a vision and foresight gained by past experience Ansal API has a

roadmap for future development of reality business. It proposes to drive its

growth through focused concentration on developing integrated townships in

tier II cities, establishing presence in IT parks and SEZ. The company also

plans to establish malls in these townships with mixed hotel/ serviced

apartment usage. In keeping with the Government's housing policy, the

company endeavors to provide better dwelling units for the urban poor with

special emphasis on environmental improvement and social forestry. Ansal

API is committed to carry out technical and management expertise to

smaller towns so that on one hand the congestion in the metropolis could be

avoided and on the other hand the benefit of planned development with its

attendant improvement in the life style could be extended to the bulk of the

Indian population living in smaller towns. Ansal API is focusing on

ushering in new lifestyle ventures in cities like- Greater Noida, Gaziabadh.

Meerut, Agra, Lucknow, Batindha, Mohali, Amritsar, Ludhiana, Jalandhar,

Jaipur, Jodhpur, Ajmer, Sonepat, Panipat, Karmal, Kurukshetra, Faridabad,

Gurgaon to name a few.

It is said that actions speak louder than words and nothing highlights this

adage better than Ansal API's effort to give something back to the society

of which they are a part. Ansal API believes that today's children are

tomorrow's leaders and in order to hone their young minds, Ansal API has

forayed into the education sector with schools like the Chiranjiv Bharati

School at Palam Vihar and Sushant Lok, premier institutions like the Ansal

Institute of Technology and the Sushant Schools of Art and Architecture.

Ansal API in its endeavour to fulfill its duties to payback in form of green

cover for the society have created manmade verdant ambiance at projects

like the Aravali Retreat, Pushpanjali Farms, Satbari Farms. Ansal API plans

to create an ambiance of peace and tranquility for the people who have

served their duties and are now in their dusk of life to relax and enjoy their

retirement by building old age homes.

Touching every facet of modern lifestyle with its signature of excellence,

Ansal API has changed the skyline of India with its versatile portfolio of

residential complexes, educational institutions, hotel and hospitality

avenues, shopping malls, farmlands and IT parks amongst others. With its

deep-rooted foundation of ethics and values, Ansal API continues to

conquer new horizons, thus pioneering and identifying new vistas of growth

for the real estate sector.

TODAY OUR action domain encompasses the whole field of manmade

habitat creation, integrating within its ambit both physical and social

infrastructures like housing , townships ,commercial complexes ,hotels,

entertainment , educational institutes and many more.

Ansal’s is an organization which can be envisaged better as a creator of

manmade geographies where modern life blossoms in active collaboration

with nature. For nearly four decades now the name Ansal’s has been

synonymous with the entire gamut of construction and real estate

development activity and abroad. Way back in 1967 Ansal introduced the

concept of high rise commercial complexes in Delhi and since then the

group has marched on unbated path in changing skyline of not only Delhi

but also several other cities in India as also places abroad.

Ansal group comprises of 25 companies. Ansal properties and industries

ltd. Being the flagship country. It has successfully completed large number

of projects and developed estates nationally and internationally. It has also

completed its overseas operations in Iraq ,Thailand , Russia , Bangladesh

and Vietnam successfully.

Ansals have been following a highly progressive approach which is aimed at

a result orientation and is based on the latest in technology and

management. The company employs a human resource of over 500 persons

with over 150 people manning the supervisory and managerial positions.

The professionals form an effective pool of talent and expertise in various

specialized fields such as marketing, finance , engineering, architecture,

construction etc. backed by up-to-date information technology and

management systems aimed at excellence in the end results.

REAL ESTATE PROMOTIONS AND DEVELOPMENT

By far the most dominant activity of Ansals has been Real Estate Promotion

& Development. The company has several landmark high rise commercial

buildings like Statesman House, Ambadeep, Antriksh Bhawan , Tolstoy

House , Indra Prakash, Nuarang Bhawan and Ansal Bhawan among others.

Besides, Ansals have also completed several residential like Gauri Sadan ,

Upasana at Hailey Road & Dhawan Deep at Jantar Mantar road all in the

heart of New Delhi Cannaught Place. In addition to its most prestigious

Ansal Plaza project in South Delhi & a 5 Star Super Deluxe Marriott Hotel

project in Saket. The company has developed various farm estates and

techno parks & won many laurels abroad. In Thailand alone, there are

several prestigious complexes. The company has also left imprints of their

presence in other parts of the world viz. Iraq ,CIS Countries,

Vietnam ,Myanmar and Bangladesh. The company has presented the most

appropriate answers to the problem of the clustered residential of urbanities

with elite townships, Sushant Lok and Palam Vihar , south of Delhi and

several other places all over the country.

REAL ESTATE BUSINESS

Ansals have entered into strategic business alliances with various

international companies like National Panasonic for its Brand Shop at Ansal

Plaza. It has recently opened its 4000 square feet ultramodern footwear

showroom ‘shoes ‘n’ shapes’ of branded leather goods having variety of

branded leather accessories that include the world’s biggest bag on display.

The visitors will have the privilege to these branded leather bags from

DaMilano and HiDesign international brands of repute. Renowned brands of

footwear like Lotus Bawa, Lee Cooper ‘Xess , Hangten and Allen Cooper

have been roped in for retailing both formal and semi formal shoes. While

Allen Cooper and Lee Cooper will showcase shoes exclusively for men,

‘Xess offers footwear for the lady customers. On the other hand, Lotus Bawa

not only has something for both men and women but will also provide

comfortable shoes for the tender feet for children .

ENVIRONMENT UPGRADATION

All our projects are aimed at environmental up gradation. By afforestation of

a vest and bare hill side of Aravalli ,Ansals have developed it into a little

paradise on earth. The transformation has not restricted itself only to an

abode of flowering plants, healthy trees, green meadows , but also wildlife

and bird’s sanctuaries, manmade lake etc. Pushpanjali farms ,Palam farms,

the Golden orchards and the Vilas Manajari farms indeed have lots of green

that acts as lungs for the surrounding areas to breathe.

DESIGN , ENGINEERING AND CONSULTANCY

Ansals try to achieve the self sufficiency in its expertise on Design ,

Engineering and Consultancy. They have in-house some of the best

architects, engineers and planners in its consultancy division. With their

longstanding reputation for creative building and design, coupled with the

professional expertise in arts, architecture and town planning, they have

been usefully engaged in providing consultancy and management services to

various projects in India and Overseas. They do not hesitate though to seek

external expertise in specialized areas in the self development activities

such as Hotels and Plazas.

TURNKEY HIGH-TECH PROJECTS

The Ansals have successfully completed several high-tech projects of

national importance in the diversified field of irrigation, thermal and nuclear

projects, express ways, viaducts, power houses, tunnels ,harbours and other

civil engineering projects demanding high degree of skill and expertise. We

always look forward to new challenges in high-tech areas in construction.

HOSPITALITY DIVISION

CLUBS

Ansals have ventured into new areas of Hospitality business, Forays into

Hotels, Serviced Apartments ,Clubs hotels & Clubs are a part of this

exercise. We have drawn up an impressive plan to have chancellor clubs,

resorts and restaurants at all major housing colonies being developed. The

club with all modern amenities and facilities ranging from swimming pools

to remain tennis courts to mini golf under the name of chancellor club is

fully in operation at Palam Vihar.

HOTELS

Ansals have built a thoughtfully planned 5 star hotels namely Marriott

Welcome Hotel in Saket, which is strategically, located around 8 kms. From

New Delhi’s International airport. It has 222 guest rooms and suite

equipped with modern facilities to ensure that guests have a comfortable &

enjoyable stay. The international standard & spirit of planning & execution

for this hotel by adding values in providing world class service to its

clients have further strengthened the trust of its clients by which Ansals are

set to carry out several similar projects in some spirit of excellence.

WORKLOAD AND TURNOVER

Ansals have won the goodwill of the investors both in India and overseas

with their commitment to excellence, expertise and professionalism. Today

yearly turnover of Ansal properties & industries Ltd., and other allied

companies is Rs. 175 crores and its multiple projects in hand exceed Rs.

1000 crores. The nature of projects span the entire gamut of construction

activities and include even high-tech areas. Efforts are on to expand the

activities further, which should contribute to further growth of the company.

SOCIAL COMMITMENT

Ansals recognize the right to housing for everyone and offer full support to

Government’s schemes for economically weaker sections by building

houses & providing developed lands to less privileged section of the society

at high-subsidized rates. Our institute of learning like the Chiranjiv Bharati

school at Palam Vihar and Sushant Lok. The Ansal Institute of Technology,

Sushant School of Arts & Architecture, the newly started courses in

Management & Information Technology affiliated to Guru Gobind Singh

Indra Prastha university are the reputed seats of learning created by us for

nurturing the intellectual health of the society’s youth.

OUTLOOK

Inspire of periodic ups and downs through which the Estate Developments

and construction has been passing over the last few years, the future of the

industries is bright. It is our commitment to carry out technical and

management expertise to smaller towns so that on one hand the congestion

in the urban metropolis could be avoided and on the other hand the benefit

of planned development with its attendant improvement in the life style

could be extended to the bulk of Indian population living in smaller towns.

Towards this end, a beginning has already been made by taking up real

estate & other projects especially of establishing malls at several towns

away from the capital such as at Faridabad, Noida, Agra, Kanpur,

Allahabad, Varanasi, Ghaziabad, Meerut etc. It is also proposed to build

exclusive NRI colonies and malls and has started two new office complexes

by the name of Times Square and Orchard Square in Sushant Lok 1 which

will be ultra modern office complexes and will cater to multi national

companies covering a total built up area of around 4,00,000 sq. ft. In

keeping with the government’s housing policy, the company is endeavoring

to provide better dwelling units for the urban poor with special emphasis on

environment improvement and social forestry. High-tech construction of

turnkey projects will continue to be a thrust area. In the final essence , the

company will continue to build globally for people’s welfare.

AWARDS WON BY ANSALS

Udyog Patra Award – for self made industrialist

Siromani Award - for excellent work in urban society

Udyog Alankar Award - for outstanding work in large scale

buildings

Nirman Udyog Award - for excellent work in properties

investments

International Meridian Award - for outstanding contribution to

urban & housing development in Delhi.

MISSION

It is our mission not only to house the homeless and to achieve difficult

engineering feats by producing memorable landmarks for the posterity but also

to contribute to the lasting values to our modern life style without sacrificing

the basic values of life. We believe in sustainable development to provide

healthy , happy and wholesome quality of life for our people and the people of

the world.

The dream that was shared between our visionary co-founder Late Lala

Chiranjiv Lal Ansal and myself has seen us through four glorious decades of

uplifting the quality of lives. This in turn, has put us in an enviable position

of being the catalysts of change in the region. What started as a family

business in 1967, has now become a professionally managed organization

with interests in diverse aspects of real estate. The key role that we have

been playing is that of changing the behavior patterns of people by

introducing them to a certain lifestyle. Now we are geared to further this

transition by donning an all new identity built on the same solid foundation

of excellence, teamwork and commitment. I would like to sum up thoughts

by saying, "We had dreamt of enriching the lives of our brethren by creating

world class real estate solutions and redefining lifestyle standards". Quite

aptly, we are headed towards this direction.

Sushil Ansal

Chairman

Ansal API

PRESENT SCENARIO IN RETAIL SECTOR IN INDIA

The organized retail sector is expected to grow at 6% by 2010 and

touch a retail business of $ 17 billion as against its current growth

level of 4% which at present is estimated to be $ 6 billion, according

to the Study undertaken by The Associated Chambers of Commerce

and Industry of India (ASSOCHAM). The Study has revealed that the

retail sector will grow at GDP 7% by 2010 and enlarge its market

share to $ 280 billion from its present estimated level of $ 200 billion.

Cities and metropolitans in which retailing will show booming

prospects include Mumbai, Delhi, Chennai, Kolkata, Bangalore and

Kanpur and the popular mode adopted for building shopping malls in

these cities will be based on build, operate, lease and sell basis. This

system, as per the findings of ASSOCHAM will lead to

establishments of closer linkages and relationship between real estate

developers, state governments, financial institutions and retail

industry. As per ASSOCHAM’s estimates, investment opportunities

that the retail sector will create in next 4-5 years will result into

continued urbanization and increase the per capita income of Indian

populace which will finally lead to greater consumerism. The growth

of retail sector will lead to greater shift towards service economy in

which need for real estate will be paramount. Franchising in retailing

will emerge as a popular mode of retailing as their will be

proliferation of availability of brands with both foreign and Indian

companies acquiring strong brand equity for their products in near

future.

The retail boom currently being witnessed in India is likely to have a

significant impact on the commercial real estate sector as the large

metropolitans will have sizable retail construction projects underway.

However, there will be few stumbling blocks that may restrict the

growth of retail sector. These include very high stamp duties on

transfer of property which vary from state to state level. A case in

example is Gujarat, Uttar Pradesh and few other states where the

stamp duty is charged at 12.5%, while there are certain states like

Delhi in which the stamp duty levied is within the range of 8%.

Urban Land Ceiling Act, Rent Control Act and Land Acquisition Act

until amended will continue to distort property markets and cities,

leading to exceptionally high property prices. Presence of strong pro-

tenancy laws will also make it difficult for retailers to grow as this

problem is compounded by lack of clarity over titles to ownership.

The government should encourage People of Indian Origin (PIO) to

invest in real estate and township building should encourage People

of Indian Origin (PIO) to invest in real estate and township building

and foreign investment in real estate business and retailing should

also be opened up.

On the domestic taxation front, sales tax rates differ across the

various Indian states, making supply chain management a challenging

task for organized retailers. Inter-state sales attracts Central Sales Tax

while for some categories of products, certain states levy import

duties namely entry tax on entry of goods into their territory.

Simultaneously, states levy export duties where goods are moved for

sale outside state border.

Organized retailing is bound to grow tremendously provided the right

marketing strategies are adopted. Retail businesses have broken rank and

seem poised to surge ahead with renewed vigor, optimism, confidence and

capability.

DEMOGRAPHICS & CONSUMER BEHAVIOUR

POPULATION

India is estimated to have a population of 1.12 billion as of 2007. Population

growth is expected to stabilize at approximately one and a half percent in the

next few years. In recent years, there has been a trend in the movement of

population from rural areas to urban areas, largely as a result of increased

employment opportunities in the cities as well as a preference of the younger

generation to move away from agriculture.

One of the important demographic trends in recent times is the change in the

age profile of the population. The percentage of the population in the 15 to

59 year age group, which is largely the country’s workforce, is expected to

increase in coming years.

The increase in population, which constitutes the workforce, is likely to

result in a higher percentage of the population being economically active.

Urban Population:

Age structure:

0–14 years: 30.6%,

Male: 188,208,196,

Female: 171,356,024

15–64 years: 61.9%,

Male: 27,258,259,

Female: 30,031,289 (2007 EST.)

The average age of Indians is 24.8 years.

INCOME/BUYING POWER

With the Indian economy witnessing moderate growth, the population as a

whole has become wealthier. The per capita income has been witnessing

steady growth in the last few decades and as can be seen from the chart, it

has almost doubled in the last two decades. This trend is likely to continue in

the near future as the economy continues to grow. In fact it is estimated that

40 million homes in India are at par with American per capita incomes.

GDP per capita expected to approx. double by 2010

CONSUMER SPENDING PATTERN

The total private consumption in India was estimated to be approximately

INR 13,500 billion. Of this, expenditure on food was the single largest,

accounting for nearly 41% of total expenditure. This was followed by

expenditure on durables, which was 32% of total expenditure. The chart

below shows the various categories as a percentage of total consumption

expenditure and how it is changing .Expenditure on Consumer Durables,

vacations and Books & Music are rising while that on Personal care items,

Grocery ( albeit still the biggest expense) and savings & investment are

falling.This is a clear indication of the economy developing , and with it the

retail markets.

THE RIGHT RETAIL MIX

The retail ethos has moved from ‘the customer is God’ to CRM (Customer

Relationship Management). Against this backdrop, if we would like to look

into the ‘Indian retailing evolution’ in the last decade and try to see if I can

trace its path and examine what it will translate into in the future, we need to

look at the four elements of successful retailing. In fact, these ingredients

have been the same for centuries and are:

Location and the space in the shop.

Merchandise and merchandise management.

People and service.

Customer and customer relationship one roof and create retail

locations.

LOCATION

Location is always important, but if the other three elements of the retail mix

are taken care of, location becomes incidental for large department stores.

When the first Shoppers’ Stop started at Andheri in Mumbai, everybody

thought any shop that opened on ‘the other side of the flyover,’ was sure to

fail. Today, ten years down the line all the shops that have opened on S.V.

Road in Andheri are on the so-called ‘wrong side of the flyover’. When the

second Shopper’s Stop outlet, in Bangalore was opened next to the football

stadium on Magrath Road, the road did not have street lights another doom

was predicted. The Bangalore Shoppers’ Stop has turned out to be the

most successful retail store in the country. With Lifestyle opening next to it

and two more malls\shopping complexes in the same area, the analysts are

talking about ‘catchments’ and ‘location’. World over, malls are being

constructed at out-of-town locations and the area is then transformed into a

destination. How else will one ever create shopping destinations when no

city in the world has the space to build anything in the heart of the town? A

classic example is the shopping destination at Lille on the border of France

& Belgium. It houses the world’s largest multiplex (23 screens). Every

imaginable store from Toys R Us to Carrefour has its presences thereon a

usual weekend it takes shoppers an average of 20 minutes to find a parking

in the parking lot built to park 4000-5000 cars!

With more and more malls under construction from Indore to Jaipur and

Mumbai to Kochi, these malls, which cover anything from 1,50,000 sq ft to

5,00,000 sq ft, are going to provide Indians with multiple choices of

multiplexes, food courts, small shops, anchor

Stores, department stores specialty stores such as candle shops, yoga shops

and so on.

FINANCIAL HIGHLIGHTS

Particulars 2006-07 2005-06 2004-05 2003-04 2002-03

Revenue 14396.79 8198.62 3965.99 2837.25 1455.56

Profit Before Tax 3223.22 1467.01 263.73 172.44 78.76

Profit After Tax 2572.62 1188.15 50.36 83.48 47.67

Net Worth 4610.39 2011.22 790.72 453.96 150.25

REVENUE

PROFIT BEFORE TAX

 

PROFIT AFTER TAX

NET WORTH

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.

To find out the perception of people with regard to the residential

societies established by ANSAL.

RESEARCH METHODOLOGY

SAMPLING METHOD – Stratified method of sampling was used for face-

to-face survey and the rest of the information was collected through

telephonic conversations.

SAMPLE SIZE

People living in Gurgaon Housing and Society Complexes, in Noida housing

complexes and in Ghaziabad (Indirapuram) Housing complexes were

surveyed.

Total Number of people surveyed was: 100

Sales Manager of under-construction Housing Complexes were also

surveyed to know the degree of importance of various factors that people

consider while purchasing property, from developer’s viewpoint.

DATA COLLECTION METHOD

Data was collected by using primary as well as secondary methods of data

collection.

Primary Method

1) Face to Face interview

2) Questionnaires

3) Telephonic Survey

4) Survey through E-Mail

Secondary Method

1) Magazines on Property

2) Internet sites on Property

3) Internet websites of popular property developers of India

PROBLEMS ENCOUNTERED DURING THE SURVEY

Denial of permission to conduct survey in PVR shopping mall and few

housing complexes like DLF Belvedere Park, Purles Ansal, etc.

Travelling to far-off places from Delhi everyday.

Analyzing the perception of people about different cities of NCR was little

difficult as some respondents didn’t have much knowledge about Ghaziabad

and Faridabad.

FACTORS AND PARAMETERS CHOSEN FOR SURVEY

The questionnaire was prepared in such a way so as to achieve all the three

objectives mentioned above. In order to attain the objectives five major

questions were included in the questionnaire along with few general

questions.

In order to achieve the first objective of finding out the reasons

responsible for transition from Delhi to NCR two questions were

included. One to find out the first pull that attracts the people most while

buying the property (See Q1 of Housing Questionnaire given in

Annexure 1). And the second question helps in finding out other major

reasons for purchasing the property (See Q6 of Housing Questionnaire

given in Annexure 1)

FACTORS WERE

1. Brand name – Brand name is something that immediately comes into

your mind when you think of any product. Even in case of purchase of

property, brand name plays a major role. Many people to prefer buy the

property developed by well-known and reliable developers. Moreover

properties developed by established developers help buyers in getting the

best returns, as these properties can be sold any time at a premium.

2. Advertisements – It’s an old belief that advertisement can sell literally

anything. In order to ascertain whether its true for property or not, it was

also included as a first pull factor in the questionnaire.

3. Location – This deals with property and connectivity to road links,

airports, railway stations and bus stops. The more approachable the property

is to the public transport terminal, the more value it holds. Proximity to the

Central Business District also plays an important role in this aspect.

4. Affordability – Budget plays an important role in short listing the options

available in the market. Its only when the budget is decided, one starts

looking for the available options in the price range decided.

SOME OTHER FACTORS WERE:

1. Need for More Space

2. Need for Better facilities

3. Need for Healthy environment

4. Want for Quality Construction

5. Lack of facilities in previous residence

6. Proximity to Workplace

7. Job transfer

In order to achieve the second objective of knowing the perception of

people about cities included in NCR a question related to it was included

in the questionnaire (See Q13 of Housing Questionnaire given in

annexure 1).

PARAMETERS WERE

1. Location - This parameter includes all the locational factors such as

proximity to central business district, to schools, to hospitals, existence of

huge shopping malls, etc.

2. Business Hub – This parameters helps in analyzing the perception that

people have about the job opportunities and business prospects available in

different cities included in NCR.

3. Quality of Living – This parameter helps in analyzing what people think

about the style of living prevalent in the 5 cities included in NCR.

4. Law and Order – This parameter helps in analyzing what people about

the safety and security situation prevalent in the 5 cities chosen for the

survey.

5. Infrastructual Development – This parameter helps in analyzing how

respondents rate 5 different cities chosen for the survey, on the basis of

conditions of road and highways, availability of public transport, etc.

In order to achieve the third objective of knowing the degree of

importance of various factors, which people consider while purchasing

the property, two questions were included in the questionnaire. One to

find the degree of importance of external factors (See Q2 of Housing

Questionnaire given in annexure 1) and another to find the degree of

importance of in-locality factors (See Q3 of Housing questionnaire given

in annexure 1).

FACTORS WERE EXTERNAL FACTORS

1.Price Range2.Connectivity to Public transport

3. Proximity to workplace

4. Availability of loan

5. Easy Payment Plans

6. Rate of Interest

7. Resale Value

8. Clear title of property

9. Proximity to School

10. Proximity to Hospitals

11. Proximity to Entertainment Centers

IN LOCALITY FACTORS

1.Peaceful Locality

2.Pollution Free environment

3.Population/occupancy

4.Quality of Construction

5.Maintenance

6.Suitability of Home Type

7.Utilization of space

8.Water Availability

9.Power Backup

10.Safety-Security

11.Recreational facilities/Sports Complex

12.Car Parking facility,

13.Club Membership

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 it’s being a huge

employment generator. The real estate market is booming. It’s

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.

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.

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.

DATA ANALYSIS

Three tables and charts have been prepared for each of the three cities namely

Gurgaon, Noida and Ghaziabad to analyze what respondents from each of these

cities think about five cities included in NCR namely Gurgaon, Noida, Greater

Noida, Faridabad and Ghaziabad on the basis of five parameters namely

Location, Business Opportunity, Law and Order, Style of Living and

Infrastructural Development and also to know the reasons for which they

bought the property.

GURGAON

Perception of people about the cities of NCR

LocationBusiness

OpportunityQuality of

livingLaw and

OrderInfrastructural Development

Gurgaon 45 25 40 35 45

Noida 25 10 25 27 25

Greater Noida 2 16 15 18 20

Faridabad 20 35 10 10 2

Ghaziabad 8 14 10 10 8

01020304050

Loca

tion

Bus

ines

sO

ppor

tuni

ty

Qua

lity

ofliv

ing

Law

and

Ord

er

Infra

stru

ctur

alD

evel

opm

ent

Gurgaon

Noida

Greater Noida

Faridabad

Ghaziabad

Findings:

1. Gurgaon buildings stand tall in each and every parameter. Gurgaon tops

in all the parameters among Gurgaon respondents.

2. Though in case of Infrastructural Development Greater Noida and Noida

are also ranked well by the Gurgaon residents. Probably the credit goes to

DND flyover.

3. Location wise, people of Gurgaon feel only Gurgaon and Noida are good

in the entire NCR as Greater Noida, Faridabad and Ghaziabad could fetch

only 1, 2 and 1 favourable response out of total 100 responses.

First Pull to choose the Housing Complex

Brand name AdvertisementsLocationAffordability

46 10 55 72

Findings:

1. The basic reason for people buying property in Gurgaon in mass scale is its

locational advantage. It shares border with the Capital of India. Moreover

huge employment generating BPO companies are located in Gurgaon. Many

Reputed schools and colleges have also come up in Gurgaon. Some of

India’s biggest shopping malls having shops of international brands as well

as famous national brands are also situated here.

2. Second major factor which attracted people to buy property in Gurgaon was

affordability. Developers realizing that most of the people shifting to

Gurgaon will be from middle class society they constructed big towers with

numerous reasonable flats. Since the price of the property kept by the

developers suited the pockets of buyers they were able to buy it without any

financial problem.

3. Third major factor was brand name. According to the survey it was

concluded as for many respondents brand name was the prime reason for

which they bought the property. In Gurgaon Housing Complexes have been

constructed by popular and leading property developers of India like Ansal,

DLF, Ansals, Unitech Etc.

4. Only small percentage of the total respondents feel that it was

advertisements which made them buy the property. Advertisements can

actually put the name of the property in the mind of the buyer but no one

actually buys the property only on the basis of advertisements. Thus it will

be wrong to say that advertisements are useless since they do help in selling

though not directly.

Major reasons for shifting

Reasons More spaceBetter

LocationBetter

FacilitiesHealthy

environmentIncrease in

living status

Quality ofconstructio

nNo. Of people 46 84 54 43 38 11

ReasonsLack of facilities

Proximity toWorkplace Job transfer Own house Investment Others

No. Of people 18 58 10 42 11 26

Findings:

1. Among various reasons better location is the most important reason for the

people to shift to Gurgaon Housing and Society Complexes. Why location is

most important has become apparent till now.

2. Proximity to Workplace and Better Facilities are close second and third most

important reasons. Proximity to Workplace may become the most important

reason in few years time as industry migration to Gurgaon is happening

quickly. All the international brands are preferring Gurgaon over Delhi for

their regional office. Moreover people in need of better facilities like water

availability, Power Backup, Safety and security, etc also prefer to shift to

Gurgaon as Housing complexes of Gurgaon provide all these facilities.

3. Need for more space, Need for Healthy Environment, Need for Own House

and Increase in Living Status can be considered as other major factors for

people shifting to Gurgaon Housing Complexes.

4. People also purchased property in Gurgaon for investment purpose. This

reason may not be seen in such a large number in any other city of NCR. Its

so because people consider investment in property in Gurgaon as a very safe

bet and expect high return on Investment.

NOIDA

Perception of People about the cities

LocationBusiness

OpportunityQuality of

livingLaw and

OrderInfrastuctural Development

Gurgaon 2 13 22 22 6

Noida 54 32 32 27 9

Greater Noida 0 2 2 7 41

Faridabad 0 9 0 0 0

Ghaziabad 0 0 0 0 0

Findings:

1. In Location, Noida is a clear winner with 54 respondents choosing it as the

best location in the entire NCR. That is a huge percentage. This shows that

Noida people are happy with its Location. Noida is located close to the

Capital of India and is also very closely located to Indirapuram, another

upcoming city.

2. In all parameters other than location, Gurgaon has also been ranked as no.1

by many people.

3. One significant thing in this chart is that Faridabad was selected by many

Noida respondents as no.1 in case of business opportunities available.

4. The most significant thing indicated by the chart is that people of Noida

have chosen Greater Noida as no.1 in Infrastructural Development.

Respondents have favorably marked for greater Noida while only 9 have

marked for Noida.

First Pull to choose the Housing Complex

Brand name AdvertisementsLocationAffordability

1 0 40 31

Findings:

1. In Noida just like in Gurgaon, location is the most important factor that

pulls the people to buy a new home.

2. Advertisements have no role in the sale of homes but as said before in the

report advertisements do add the advertised property as an option in the

mind of the prospective buyer.

3. According to respondents from Noida Brand name of the developer

didn’t play a big role in making them buy the property. Its probably

because Noida doesn’t have highly popular brands like Ansals , ANSAL,

Eros, DLF, etc.

4. Affordability is another major reason for the buying the property in

Noida. As there is hardly any popular developer in Noida and the homes

provided in Noida are not as luxurious as that in Gurgaon, the prices are

very low as compared to the prices prevailing in Gurgaon. In Gurgaon

Higher class and Upper middle class people also buy homes in large

numbers whereas in Noida the number of high class and upper middle

class people looking for new home is very less.

Major reasons for shifting

Reasons More SpaceBetter

LocationBetter

facilitiesHealthy

environment

Increase in living status

Quality constructi

onNo. Of people 31 28 35 11 13 9

ReasonsLack of facilities

Proximity to workplace

Job transfer Own house Investment Others

No. Of people 5 2 0 31 1 3

Findings:

1. One of the most important thing found out in the survey was that the one

of the major reasons to buy the house was the desire of people to have

their own house. This reason was not at all important in case of Gurgaon.

This goes on to show that houses in Noida are very reasonable. Mostly

people earlier living in rent have bought properties in Noida either to

avoid high rents prevailing in Delhi or due to the desire of having an

own asset.

2. Need for better facilities was tick marked by maximum number of people

as a reason for buying the property. This again proves the fact that people

buying property in Noida are generally from middle class who earlier

used to live in less popular colonies of Delhi which are deprived of

essential facilities like water, power and safety.

3. Another major reason for buying the property in Noida is Need for more

space. Generally people earlier living in joint families or newly married

couples prefer buying property in Noida as they are affordable.

4. Only 1 respondents have said that investment was the main reason to

buy the property. This goes on to show that people don’t generally buy

property in Noida for investment purpose.

5. Another important point to notice is that in Noida proximity to workplace

reason is insignificant. Its probably because virtually non-existence of

BPO companies in Noida.

GHAZIABAD

Perception of people about the cities of NCR

Location

Business

Opportunity

Quality of

Living

Law &

order Infrastructure

Gurgaon 20 28 59 60 40

Noida 93 75 74 64 49

Greater Noida 2 6 9 12 48

Faridabad 1 17 2 5 0

Ghaziabad 34 24 6 9 13

Findings:

1. 1.Respondents from Ghaziabad have chosen Noida as the best location in

the entire

2. NCR. As many as 93 respondents have marked favourably for Noida

This clearly goes to show that Ghaziabad respondents have good image

of Noida as far as location is concerned.

3. In all other parameters there is a clash between Noida and Gurgaon but

Noida seems to lead in every parameter.

4. In business opportunity Noida have again been favoured while rest four

have almost same image in the mind of Ghaziabad respondents.

5. In case of quality of living both Noida and Gurgaon have been marked by

many as number 1. Style of living in other three places do not have

enjoy good reputation in the mind of the Ghaziabad respondents.

6. In case of law and order Ghaziabad and Faridabad are clear losers. This

fact has been observed in all the three cities.

7. In Infrastructure Greater Noida enjoys good reputation.

First Pull to choose the Housing Complex

Brand

Name AdvertisementsLocationAffordability

14 11 85 92

Findings:

1. In Ghaziabad affordability is the main reason for the people buying

property out there. The occupied Housing complexes of Ghaziabad are

pretty old and very reasonable. Developments in Ghaziabad started much

before it started in Gurgaon and Noida. So at that time prices were low.

Now with the massive development of Noida, Gurgaon as well as of

Indirapuram price of property have increased like anything.

2. Location is the second most important factor which makes people buy

property in Ghaziabad. Ghaziabad is located close to Noida as well as

Delhi. Moreover Indirapuram, the real upcoming area is its neighbour.

Moreover Ghaziabad’s development took place years ago so it already

has lots of facilities available.

3. Advertisements and brand name did compel few to buy the property in

Ghaziabad but still they were not so important factors.

Major reasons for shifting

ReasonsMore Space

Better Location

Better facilities

Healthy environment

Increase in living status

Quality constructi

onNo. of People 49 71 37 9 11 2

ReasonsLack of facilities

Proximity to

workplace Job transfer Own house Investment OthersNo. of People 9 12 5 54 1 20

Findings:

1. Though Ghaziabad respondents have rated Affordability as the major

reason for buying the property in Ghaziabad but if we exclude

affordability as a factor we find that location too was a very important

factor as we can see in this chart. 71 Respondents have marked location

as a reason for buying the property

2. Just like in Noida, the desire to have an own house is a major reason to

buy a property, in Ghaziabad too. This proves the reliability of the

previous chart which shows that the major reason to buy a property in

Ghaziabad is affordability.

3. Third most important reason for buying property in Ghaziabad is

requirement of more space.

4. Same as Noida reasons like proximity to workplace and investment are

almost insignificant.

RECOMMENDATIONS

As ANSAL enjoys good brand name and have a battalion of brand loyal

customers it shall make sure that the maintenance of its occupied housing

complexes is taking place in the best possible manner.

Due to stiff competition in the market ANSAL shall focus on the Quality of

homes provided and shall also try its best to meet different kind of

requirement of different buyers.

Due to the current oversupply situation in the market ANSAL shall resist

from increasing price of its property.

ANSAL shall help and lure the prospective buyers by helping them in

getting housing loans. It shall collaborate with some popular banks for this

purpose. These days even banks are more than willing to provide home

loans.

ANSAL shall provide the right amount of greenery in its housing

complexes, as pollution free environment is a very important factor that

people consider while purchasing the property.

Gurgaon, Noida and Greater Noida are the places where ANSAL shall come

up with new projects as they have been marked favourably by the all

respondents. Respondents do not have good image of Faridabad and

Ghaziabad while Indirapuram is yet to prove its worth.

Advertisement for selling property in Gurgaon can be “Why drive for 45

minutes to your workplace everyday, take a flat in Gurgaon today.” As

proximity to workplace is the major reason for people buying flats in

Gurgaon. Whereas for Noida and Greater Noida advertisement can be like

“Fed up of paying rent. Now realize your dream of having a house of your

own-COME TO NOIDA” as desire of having an own house is the most

important reason for the people buying property in Noida.

CONCLUSION

The major external factors which people consider while purchasing the

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

The major In-Locality factors which people consider while purchasing the

property are Quality of construction, Availability of water and Pollution-free

environment

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.

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

more than 95 % of the total responses.

In Gurgaon major reasons other than affordability and location, to

purchase the property were proximity to workplace and healthy

environment.

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

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

BIBLIOGRAPHY

BOOKS & JOURNALS

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

Real Estate, monthly journal , vilume 2, 2006

India Today Buyer’s Guide – November 2006 Edition

INTERNET LINKS

www.ansal.com

www.unitechgroup.com

www.dlf-group.com

www.Ansalspropertiesltd.com

www.eros-group.com

www.eldecogroup.com

www.parsvnath.com

www.ashianahousing.com

www.gurgaonproperties.net

www.realestatencr.com

www.gurgaonrealestate.com

www.estatedeveloper.com

ANNEXURE-1

SAMPLE QUESTIONNARE

Name_____________________________

Household income per annum:

Below 3 lac 3-5 lac 5-8 lac above 8 lac

Self-owned property Rental

If rental, have you invested in some other housing complex: Yes No

Duration of stay_________________ Size of family

____________________

No. of cars owned_____ Types of cars Low segment Mid Luxury

1. What factor was the first pull to choose this housing complex

Brand name of developer Attractive and frequent advertisement

Location Affordability

2. To what extent d do the following factors influence your choice of a

housing complex:

Price Range

Connectivity to Public Transport

Proximity to Work Place

Availability of loan

Easy flexible Payment Plan

Rate of interest

Not at all Very large extent

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Resale value

Clear title of property

Proximity to school

Proximity to hospitals

Proximity to Entertainment

centers

3. To what extent do the following “in locating” factors influence your

choice of a housing

Peaceful locality

Pollution free Environment

Population/Occupancy

Quality Of Construction

Maintenance

Suitability Of Income

Type

Utilisation Of Space

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Not at all Very large extent

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Water availability

Power back up

Safety- Security

Recreational/Sports Complex

Car Parking

Club membership

4. Your previous residence was a: (mention if rental Yes No)

Developer housing complex Independent house

Society flat (DDA, SFS etc) Others

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

5. Specify the previous residence mentioned above:_____________

6. What were the reasons to shift from previous residence:

Need for more spaces Need for better location

Need for better facilities Need for healthy environment

Increase in living status Want for Quality Construction

Lack of water and power (in previous locality)

Lack of recreation (Clubs, Cinemas, Sports Complex) others

7. Are you planning to sell current property (move out in case of rental):

Yes No

8. The property is self-owned Rental

9. What type of property are you shifting into:

Developer housing complex (Unitech, DLF etc.) Independent house

Society flat (DDA, SFS etc.) others

10. when are you planning to shift:

0-3 months 3-6 months 3-6 months 6-12 months

more than Others

11. Where are you planning to shift into:

Gurugaon Noida Greater Noida

Ghaziabad Faridabad Delhi Others

12. Which of the following are the reasons for shifting residence:

Need for more spaces Need for better location

Need for healthy environment Need for better facilities

Want for appealing construction Increase in status of living

Lack of recreation Lack of Water and Power Others:

13. Rank the cities on the following parameters from 1-5

Location Guragaon Noida Greater Noida Faridabad

Ghaziabad

Gurgaon Noida Greater

Noida

Faridabad Ghaziabad

Location

Business Hub

Quality of Living

Law and Order

Infrastructural

Development

14. If you sell this property what will be the expected return:

Loss No returns Low returns Medium returns High returns

_____________________________________________________________

__________

All information will be kept confidential. The above data is collected is for

the purpose of market study only.

Place: ______________ House Complex: ___________________

Developers: ___________ Price: ___________ Type of flat:

___________

Q1- perciption of people about 5 cities – gugaon , noida, Greater noida,

faridabad, ghaziabad on the basis of

LocationBusiness

OpportunityQuality of living

Law and Order

Infrastructural Development

Gurgaon 40 30 45 40 35Noida 25 26 30 15 20

Greater Noida

15 20 15 10 20

Faridabad 10 14 5 20 15Ghaziabad 10 10 5 15 10

Q2-First pull factor to choose house

Brand Name Advertisements Location AffordabilityGurgaon 30 25 30 30

Noida 20 23 25 25Greater Noida

20 22 20 15

Faridabad 15 25 15 20Ghaziabad 15 5 10 10

Q3-Major reasons for shifting

More Space

Better Location

Better facilities

Healthy environment

Increase in living

statusQuality

constructionGurgaon 30 25 30 30 30 25

Noida 20 25 20 20 15 20Greater Noida

20 30 20 15 25 15

Faridabad 10 5 15 15 15 20Ghaziabad 20 15 15 20 15 20

Chapter 1-INTRODUCTION

Chapter 2COMPANY PROFILE

Chapter 3OBJECTIVE OF THE

STUDY

Chapter 4RESEARCH

METHODOLO GY

Chapter 5DISCUSSIONS

Chapter 6DATA ANALYSIS

Chapter 7MAJOR FINDINGS OF

THE STUDY

Chapter 8CONCLUSION

Chapter - 9ANNEXURE

BIBLOGRAPHY

QUESTIONEAR