A PROJECT REPORT ON

FLAT SCHEMES : BUILDERS AND CUSTOMERS POINT OF VIEW

Submitted to SINHGAD INSTITUTE OF MANAGEMENT

In partial ul ilment o t!e "our#e Ma#ter o $u#ine## Admini#tration

M$A Seme#ter I

Submitted b%
Ra& R'De#!pande (F ) *+, Ru"!i-a .!air-ar (F ) /0, Nitin Patil (F ) 12, Sa%ali Sane (F 3 44,

Under t!e 5uidan"e o Pro&e"t 5uide) Pro ' Man5al5ouri R' De#!mu-!

AC.NO67EDGEMENT
The project topic would not have seen the light of the day without the wholehearted support of our guide Pro ' Man5al5ouri R' De#!mu-!. We admire her infinite patience and understanding that she guided us in a field we had no previous experience. We are grateful to her for having faith in us. Maam also guided us through the essence of time management, need of efficient organization, presentation s ills and how vital it is for a management student to thin it would !e simplified and !e vivid in our minds. We are running short of words to express our gratitude for the support and faith that all the mem!ers of "inhgad #nstitute of Management, have shown in us. $ast !ut not the least% we than all the authors of various research papers and articles who have provided us directions in this domain. Their research contri!utions have assisted us in trodding a long way. from a research perspective. Whenever we approached her, she explained the concepts lucidly, so that

Ra& De#!pande Sa%ali Sane Ru"!i-a .a!air-ar Nitin Patil (M$A)I DI8ISION) 9F:,

FLAT SCHEMES : BUILDERS AND CUSTOMERS POINT OF VIEW

Certificate
This is to certify that the project entitled FLAT SCHEMES :
BUILDERS AND CUSTOMERS POINT OF VIEW , which is !eing su!mitted

herewith for the partial fulfilment of the research project in Masters in Business Ad inistrati!n "Se ester I of &niversity of 'une, is the result of the original wor completed !y Ra& De#!pande; Sa%ali Sane; Ru"!i-a
.a!air-ar; Nitin Patil under my supervision and guidance and to the !est

of my nowledge and !elief the wor em!odied in this project has not formed earlier ,the !asis for the award of any (egree or (iploma or other similar title of this or any other &niversity or examining !ody.

(ate)

'lace) 'une

Pro ' Man5al5ouri R' De#!mu-! +'roject ,uide-

TA$7E OF CONTENTS
.!stract #ntroduction and significance $iterature /eview 0!jectives and hypothesis /esearch design including sample design .nalysis tools used 1indings 2onclusions $imitations 3i!liography

A$STRACT
The research was aimed at understanding customers and !uilders point of view towards flat scheme. Total 45 customers were interviewed with help of 6uestionnaire to understand their preference towards !uying houses. The age group of the customers was 78 9 :8 years. #t was found that customers want to !uy 7 3;<. They want to !uy houses in outs irts of 'une especially in ;adapsar and Magarpatta city. =8 !uilders were interviewed to understand their focus of construction. #t was found that !uilders are focusing more on constructing flat schemes than townships. #n flat schemes they are focusing more on constructing 7 3;< and :3;<. The preferred area !y !uilders is "atara road, <atarj. They spend on an average > lacs on promotions focusing more on 7 3;< flats.

<ey words) 1lat scheme, 3uilders, 2ustomers

CHAPTER /

Introdu"tion and Si5ni i"an"e Introdu"tion<

'une is the seventh largest metropolis in #ndia, the second largest in the state of Maharashtra after Mum!ai and the largest city in the Western ,hats. 'une city is the administrative capital of 'une district. 'une is popularly nic named as ?@ueen of (eccan, ?'ensioners 'aradise, ?2ultural 2apital of Maharashtra, ?2y!er 2ity etc. owing to its location, pleasant climate, historical importance, vi!rant culture and presence of #T-#Te" centres. 'une is nown for its educational facilities and relative prosperity. 'une is the cultural capital of Maharashtra. #t has a growing industrial hinterland, with information technology and automotive companies setting up factories in the district. 'une is a thriving industrial centre sheltering manufacturing units of some of the most prestigious industrial houses of the world. Whilst the metropolitan city of Mum!ai has witnessed massive real estate development in the past decade, emergence of 'une is !ecoming increasingly integral to the real estate sector in Maharashtra and the country at large. (riven !y positive demographic and income trends% auto and education industry% and fast-developing infrastructure, 'une claims the status of one of the leading real estate destinations in #ndia. 'une has witnessed tremendous growth and development in real estate in the recent years. The city continues to witness good traction this year as well as this mar et continues to !e relatively more afforda!le and new launches are helping to eep the momentum. /eal estate in 'une has grown more rapidly and to higher levels than in most other #ndian cities. 'roperty prices have multiplied in almost all parts of the city and the su!ur!s and neigh!ouring areas have !een getting a!sor!ed at a considera!le pace 9 although the mar et is not fully immune to a slowdown in the glo!al and national economic environment. There are various reasons for 'uneAs sudden rise in real estate fortunes. 'une is home to a large num!er of educational and training institutions that cover every aspect of

academics, finding such a diverse treasure of nowledge and learning in one city is 6uite unusual. 'une also !oasts of other attractions to tourists. 1or instance, it offers a full-fledged horse racing infrastructure which is a major attraction among people from other cities. ;owever, the major driving force !ehind 'uneAs success in real estate mar et is the #nformation Technology edge. 'une and its outlying localities such as ;injewadi, <haradi, ;adapsar, .undh and Wa ad are very much under the spotlight since the first multinational giants !egan expressing serious interest in them. 2lose proximity to the financial capital 9 Mum!ai and rapidly moving infrastructure has made 'une one of the most sought-after destinations in the country today. . large num!er of migrants from different parts of the country have led to a realty !oom in the city. With respect to its potential, a slew of other developers from other cities of the country are also ma ing their presence felt and loo ing forward to reap the !enefits of the inherent demand that 'une offers. .t present, the real estate and construction sectors are playing a crucial role in the overall development of 'uneAs core infrastructure. 'une real estate industrys growth is primarily lin ed to developments in the retail, hospitality, "pecial Bconomic Cones +"BCs- and #T #ndustry. The 'une real estate mar et has !een driven !y genuine demand resulting in increased development of !oth commercial as well as residential space. The real estate sector in 'une has seen a lot of deviations, initially dominated !y commercial players to residential groups now. The mar et was earlier dominated !y commercial real estate projects !ut with the increasing num!er of immigrants and wor ing population the demand for residential housing projects has increased tremendously. Thus Dtrends in real estate in 'uneE is an interesting topic of study. The !uying !ehaviour of the customers in 'une and the !usiness point of view of !uilders is an important factor in the real estate scenario in 'une. ;ence there is a need to study the perception of customers towards !uying the flats in 'une, .s well as the focus of !uilders in constructing the flats.

Si5ni i"an"e<
With the increasing num!er of employment opportunities in the city, the demand for homes is also rising steadily, and continues to clim! steadily. The developers who were earlier focussing only on the commercial projects are now moving towards !uilding residential projects in 'une. This shift in trend has occurred due to the continuously increasing num!er of "pecial Bconomic Cones +"BC- in 'une along with improving infrastructure and good connectivity to Mum!ai. 'une is growing at its periphery. "ince the space in the core area is restricted, most !uilders are constructing projects in the periphery. The real estate space in 'une is classified into five distinct zones - 2entral 'une, Forth 'une, "outh 'une, Bast 'une and West 'une. =. 2entral 'une) 3hosale Fagar, (eccan, Model 2olony, 'ra!hat /oad, and "hivaji

Fagar 7. :. Forth 'une) 2hinchwad, . urdi, 'radhi aran, Talegaon, 2ha an, and /avet "outh 'une) .m!egaon, <atraj, <ondhwa, 'arvati, "alis!ury 'ar , "inhagad

/oad, Mohammadwadi, F#3M, and Warje >. Bast 'une) 3oat 2lu!, ;adapsar, <alyani Fagar, <haradi, <oregaon 'ar ,

Wagholi, and Giman Fagar 8. West 'une) .undh, 3alewadi, 3aner, 3avdhan, ;injewadi, <othrud, 'ashan,

'imple- "audagar, and Wa ad. #n all these areas, various new projects are !eing constructed. This is a huge space and hence it is important to now which of these are considered as prime locations !y !uilders. .lso it is important to understand the customers psychology while !uying houses in various areas. ;ence the study of !uilders perception and customers point of view is important to understand current real estate scenario in 'une.

CHAPTER 2

Litreature Revie
'une real estate mar et has expanded !y =4.4H in period !etween Iune 75== and Iune 75=7, as per a research report from ,era (evelopers. (uring this period, prices went up !y =>.5JH while the preceding months registered an average growth rate of =5.44H. Micro-mar ets such as <olhewadi and 3olhai cloc ed price appreciation in excess of 85H, and as many as six micro-mar ets had a price gain of more than 78H. /esidential real estate industry in 'une has witnessed stupendous growth in the past few years owing to the following reasons) =. increase in !usiness opportunities 7. increase in num!er of immigrants :. ample jo! opportunities in service sectors >. growing income levels 8. increased afforda!ility With the increase in citys population driven !y the #T !oom resulting in a large migrant population shifting !ase to the city, there has !een a considera!le residential activity in the region in the last few years. #T zones in the city are witnessing fast development with a string of new and contemporary residential complexes on the anvil. These comprise of <haradi, ;injewadi, Fagar road, Gimannagar, <alyannagar, ;adaspur, .undh, 3aner, 3avdhan, and 'impri 2hinchwad. 'rimarily the end-user segment drives the demand for residential units in 'une. Bven during the economic slowdown, the decline in capital values in 'une was on the lower side as compared to most of the other major cities. 3etween 755K and 75==, capital value in 'une posted 2.,/ of =>H, next only to Mum!ai, which grew !y =KH 2ompound .nnual ,rowth /ate +2.,/- during the same period. The fact that during the !rief recovery period of 75=7, 'une did not see the ind of run-up in capital values that was evident in Mum!ai actually helped afforda!ility levels and demand conditions to remain relatively !etter. .s far as increase in capital values is concerned, 'une is expected to grow at a!out JH year-on-year during 75=7 to 75=: according to 2/#"#$.

CHAPTER 1

0!jectives and ;ypotheses

Bvery research is focused towards particulars o!jectives. The o!jectives for the research are) =. To study !uilders point of view towards flat schemes 9 'romotions, 2onstruction 7. To study customers point of view towards !uying flats :. To study major criteria of customers while !uying flats

CHAPTER !

Re#ear"! De#i5n
Survey method was used and questionnaires were administered for data collection

Sample #i=e and de#"ription< There are two different sample groups focused in the research. =. 3uilders) 'rominent midsize !uilders from the 'une city were targeted for the research. =8 !uilders from the 'une city were interviewed for collecting data. 7. 2ustomers) 2ustomers who are loo ing for flats were interviewed for collecting data regarding customers point of view. The customers were divided in : different prominent groups as per their age. a- 78 9 :8 years !- :8 9 >5 years c- >8 years and a!ove There were >J customers from the age group 78 9 :8 years, :5 customers from the age group of :8 9 >8 years, and 75 customers from the age group >8 years and a!ove. More focus was given on the age group 78 -:8 years. 0ther demographic aspects such as annual income, current occupation, marital status, and preference for !uying house were also as ed to the customers. Met!od u#ed or #ample "olle"tion "tratified random sampling method was used for selecting sample of customers. Tool u#ed< Two different 6uestionnaires were used to collect data from !uilders and from

customers. a- 3uilders) "ales executives* Mar eting executives were interviewed for collecting information !- 2ustomers) J5 customers were interviewed for collecting information Area o #ur>e%< The survey was confined to 'une city only. The sample selected was from 'une city.

Anal%#i# tool u#ed< Microsoft excel was used for analysing the data and deriving trends from the information

CHAPTER 2

Findin5#
S"ope o re#ear"!< The research was aimed at understanding point of view of !uilders towards flat schemes. The second o!jective was to understand customers perception towards !uying flats. The data was analyzed on the following points) 2ustomer) /easons for !uying new house .ge group wise division .nnual income wise division 'referred type of house !y customers 'referred locations of the customers

Re#ear"! indin5#< Ma&or rea#on# or bu%in5 !ou#e#< =. To live in 7. Feed a house close to wor place :. ,rowing family >. Migration to 'une for jo! or education 8. .s an investment Cu#tomer di>i#ion a# per a5e and annual in"ome< a- .s per age) Total 45 customers were interviewed. 1ollowing is the division of customers as per age group. More focus was given to the customers in the age group of 78 9 :8 years as that is the wor ing population and this is the population who mostly are first time !uyer for real estate. 1ollowing is the ta!le and graph showing division of customers as per age.

.ge 78 - :8 :8 - >8 >8 and a!ove

Fum!er of customers >J J 8

+,raph = - .ge wise division of customer!- .s per income) The customers were divided in > different groups as per their annual income. More focus was given to the customers in the income group of = lac- 8 lacs annually. 1ollowing is the graph showing division of customers as per annual income.
.nnual #ncome $ess than = lac = lac to 8 lac 8 lacs to =5 lacs More than =5 lacs Fum!er of customers =8 77 == 7

+Ta!le 7 9 #ncomewise distri!ution of customers-

+,raph 7 9 #ncome wise num!er of customers-

Pre erred t%pe o !ou#e# b% "u#tomer#< .s per the research it was found that the customers in the focused age group that is 78 9 :8 years of age group prefers 7 3;< more. This is !ecause most of the customers in this age group were loo ing at the house to live in. Their prominent need was a !igger house enough for > people. They reported that in future they might need a !ig house and loo ing at current real estate need the price might go up even more hence they were thin ing of !uying 7 3;< at this point itself. 1ew of them were also thin ing from the point of view of investment so they can earn money !y renting the flat to either students or families. 1ollowing is the Ta!le and graph showing preference of customers towards 7 3;<.
Type of house preferred = 3;< 7 3;< : 3;< 3unglow Fum!er of customers 8 =4 K =8

+Ta!le : 9 'reference of customers towards type of house as per age-

+,raph : 9 'reference of customers towards type of house as per age.lso the income plays major role in preference towards type of house customers wants to !uy. 2ustomers who have annual income in the range of = lac 9 8 lacs are een towards !uying 7 3;<. They preferred 7 3;< !ecause they wanted to do = time investment for may !e next few years. 1ollowing is the ta!le and graph showing preference customers towards type of house
Type of house preferred = 3;< 7 3;< : 3;< 3unglow Fum!er of customers > == J 4

+Ta!le > 9 'reference of customers towards type of house as per income-

+,raph > 9 'reference of customers towards type of house as per incomePre erred 7o"ation o "u#tomer#<

.s per the research it was found that most of customers preferred ;adpsar, Magarpatta city area for !uying new houses. The reason !ehind it was that in that area many !uilders are coming up with their new projects. .lso Magarpatta is considered as second #T hu! after ;injewadi and many new companies are opening their offices in the same location. ;ence !uying house in that area will reduce their commute to the office. .s the age group of the customers is 78 9 :8 years, the youth is loo ing also for entertainment factor. With the .manora mall and many other malls in the camp, alyani nagar viscinity,they are giving more preference to ;adpasar, Magarpatta city area. The second preferred location is <othrud, <arve nagar. This area was preferred !y the people who have children mostly !ecause this area has very wel nown schools. 1or these people the school was the criteria rather than their own commute to the office. 2ustomers who are loo ing from the point of view of investment prefer this area !ecause they can give it out on rent to students since this area has many colleges and colleges li e 1ergusson, "inhgad are also in viscinity. The following ta!le and graph show the preference of customers towards location.
.rea preferred 3aner, 'ashan, .undh (eccan, Model colony ;adapsar, Magarpatta <othrud, <arve Fagar "inhgad road Fum!er of customers L K =: =5 4

+Ta!le 8 9 'reference of customers towards location-

+,raph 9 8 9 'reference of customers towards location-

$uilder#< The data was also analyzed for understanding !uilders perspective towards flat scheme and their preferred type of houses and locations. Pre eren"e o builder# to?ard# t%pe# o lat#< 3uilders are focusing more towards constructing flat schemes than townships and row houses. Types of projects underta en 1lat scheme /ow house (uplex Township Fum!er of !uilders == : 7 7

+Ta!le 4 9 3uilders preference towards constructing types of house-

+,raph 4 9 3uilders preference towards constructing types of house3uilders are focusing more on constructing 7 3;< and : 3;< rather than = 3;< or !unglows. 1ollowing is the ta!le and graph showing !uilders preference towards 7 3;< flat schemes.

'rominent focused housing schemes = 3;< 7 3;< : 3;< 'ent house

Fum!er of !uilders =5 =7 J =

+Ta!le L 9 3uilders preference towards constructing type of house-

+,raph L 9 3uilders preference towards constructing type of houseArea pre erred b% t!e builder# or "on#tru"tion< 'referred area for construction !y !uilders is "atara road, <atraj, <ondhawa. This is !ecause there is not many!uilders who have started projects there and the space is availa!le easily. The second factor is that this area is close to highway and hence now growing rapidly.

'referred areas for construction ;injewadi, !aner, 3alewadi Warje,(hairee,Gadgaon <othrud,<arve /d. ;adpsar,Fagarpatta,1atima Fagar <atraj,<ondwa,"atara rd.

Fum!er of !uilders 7 : 7 7 L

1ollowing is the ta!le and graph showing preferred area !y the !uilders)

CHAPTER +

Con"lu#ion
1rom the research following conclusions were drawn) From Cu#tomer# point o >ie?< =. The present scenario in real estate from a customer point of view demands housing schemes of 7 3;<. This is dependent on the age of the !uyer and financial capacity. 7. The area preferred !y the customer depends on parameters such as age of the !uyer and financial capa!ility. The preferred area !y the age group 78 9 :8 is Magarpatta city, ;adapsar since it is a growing #T hu! and lots of new companies are coming to this area. From $uilder#: point o >ie?< =. The present scenario in the industry tells us that !uilders are more een towards fulfilling demands of customers as prominently focused housing scheme is 7 3;< 7. 2ost of construction varies in the range of =cr 9 78 crs and a!ove :. The !uilders are focusing on promotions of the project so that they can reach maximum target customers. 3uilders are prominently promoting 7 3;< flats. >. .verage promotional cost range is > 9 4 lacs.

7imitation#<
1ollowing are the limitations to the research) =. The sample size is small. 7. .s convenience sampling is used, the sample is !iased. :. The area from which sample is collected is restricted.

CHAPTER 0

$iblio5rap!%
/' !ttp<@@???'indiareale#tate orum#'"om@ne?#) eed)blo5#@AB)pune A' !ttp<@@!itendra"!oud!ar%#blo5'blo5#pot'in@ 1' !ttp<@@ra>i-arandee-ar#blo5'blo5#pot'in@ 4' !ttp<@@???'t!e!indubu#ine##line'"om@ne?#@#tate#@pune)real)e#tate) mar-et)#ee#)a>era5e)appre"iation)o )/2)in)A*/A@arti"le44/B*/C'e"e 2' !ttp<@@???'i"i"i! "'"om@propert%Dpd #@pune)report)A*/A'pd