INVESTORS PERCEPTION ABOUT REAL ESTATE INVESTMENTS IN NORTHERN INDIA.

Submitted by:
Mohd. Amer M.B.A. A7002212002 MARKETING & SALES

AMIT B!SINESS S"#$$L

1

AMIT !NI%ERSIT !TTAR &RA'ES# L!"KN$(

E)E"!TI%E S!MMAR
There has been a rapid growth in the real estate industry in the past few years. In the residential sector, a growing middle class is enjoying rising income levels. Combined with smaller household sizes, this demographic change has boosted demand for more modern housing and home loans. eanwhile, increasing consumer spending power has encouraged growth in organized retailing ! both feeding off and contributing to the spear of "mall culture# and the popularity of other large$scale retail property developments. In the commercial property segment, strong growth in the services sector ! particularly in the IT and IT%& sectors ! and corporate growing scale of operations have led to greater demand for commercial space, including modern offices, warehouses and lodging space. any 'evelopers have substantial plans to increase both their size and geographical spread. They are also e(panding into different )inds of properties, which can boost the firms# franchise values and reduce concentration ris)s. *owever, managing and financing such activities can be a challenge, and puts a premium on financial fle(ibility, capital access and operational infrastructure. The project assigned to me has an objective to find and analyze the current scenario of +eal %state, covering the preferences of current as well as prospective customers. The major part of the project also analyses the size of investment in various states and mind set of the customers regarding this as well as the perceptions of customers towards major leading +eal %state players.

The study was carried out with a methodology, in order to collect as much primary data as possible. 'ata was collected by meeting clients and getting their views on real estate investment in -... /uc)now region. 0reas covered in 1C+2 3urgaon, 1oida, 3reater 1oida. 4nce the data was collected, this data was analyzed and various conclusions were drawn. 0gents# viewpoints on various issues were also ta)en in order to get a more insight into the +eal %state. 5ollowing is the analyses done and conclusions drawn2 .lots, 0partments and +ented 4ffices are the most preferred investment options in +eal %state people prefer for investment. The cities that people prefer for investment and anticipate a good return in those states are2 1C+ '%/*I 14I'0 /-C6147

'elhi is seen as a mar)et of %nd$-sers, rather than investors.

.eople from all over are interested in investing in 1C+, including a good amount of population of 1+Is. In other states, a declining trend is seen8 1C+ is into a stagnant state, where there are least chances of the mar)et going worse in the near future.

Re*+ E,t*te S-e.*rio I. %*riou, St*te,:

RA/AST#AN: 3eneral size of investment in +ajasthan :,; of the people responded that the current size of investment in +ajasthan is below +s.,< lac. ost .referred 'eveloper 4ma(e, 0nsal 0.I .referred Cities =aipur, >hiwadi &!N/AB: 3eneral size of investment in .unjab :<; of the people responded that the current size of investment in .unjab is below +s.<? lac. ost .referred 'eveloper 0nsal 0.I, %maar .referred Cities ohali, 0mritsar !.&. 3eneral size of investment in -... :,; of the people responded that the current size of investment in -... is below +s.,< lac. ost .referred 'eveloper .arsvnath, 4ma(e .referred Cities @ 35

/uc)now, 0gra #AR ANA: 3eneral size of investment in *aryana :@; of the people responded that the current size of investment in *aryana is below +s.<? lac. ost .referred 'eveloper 0nsal 0.I, 4ma(e .referred Cities &onepat, .anipat 'EL#I: 3eneral size of investment in 'elhi A<; of the people responded that the current size of investment in 'elhi is above +s.<? lac. ost .referred 'eveloper '/5, -nitech N"R: 3eneral size of investment in 1C+ :A; of the people responded that the current size of investment in 1C+ is above +s. ,< lac. ost .referred 'eveloper %maar 35, '/5

&re0erred "itie,.
3urgaon, 1oida

<

'/5, most preferred developer in 1C+, fact remains, '/5, a company for *igh$%nd investors, rather than small investors.

%maar

35, one of the biggest developer with huge amount of capital in its

hands, since none of its projects are complete as of now, real estate agents are still not clear with its position amongst the investors. %maar 35 is li)ely to come big in the near future.

.arsvnath in 'elhi has created a place for itself by setting a trend of alls.

etro

>+01' 10 % and .+%BI4-& T+0C6 +%C4+' of the company that counts most for the prospective clients to invest into a particular project. This is for a reason that projects in +eal %state cannot be accurately forecasted for success or failure. &o, counting on the >rand name and previous trac) record is the only option prospects are left with.

.eople nowadays go for &hort$Term investment plans. This is mainly because, +eal %state is not at a boom, so people, who are interested in investing want to invest and realize as soon as possible.

TABLE $1 "$NTENTS
&AGE N$. C*0.T%+ 12 I.trodu-tio. to Re2ort *.d Re*+ E,t*te C*0.T%+ ,2
"om2*.y &ro0i+e *.d &rodu-t &ort0o+io 19817 7812

C*0.T%+ 92
Re*+ E,t*te *, *. I.3e,tme.t $2tio. 1:82:

C*0.T%+ @2
Study o0 "om2etitor,

90899 9;89<

C*0.T%+ <2
Liter*ture Re3ie4 C*0.T%+ C2 Re,e*r-h Methodo+o5y C*0.T%+ D2 '*t* $b,er3*tio.6 &re,e.t*tio. *.d 1i.di.5,

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978;0

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"o.-+u,io. *.d Su55e,tio., BIBLI$GRA&#

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"#A&TER 1
INTR$'!"TI$N T$ RE&$RT & REAL ESTATE
The purpose of this study is to e(amine the factors that positively influence the propensity of Indian investors to invest in the real estate mar)et. India is second largest country in the world after China in terms of population. >y ,?9?, the population of India is e(pected to be largest in the world, estimated to be around 1.<9 billion. >ecause of the large size of population and economic growth, the Indian real estate sector is booming and the annual demand for residential buildings in the country is anticipated to grow at a compound annual growth rate of <,.< percent . &anford indicates that the Indian real estate mar)et is one of the emerging mar)ets in the less developed economics of countries. India recorded an economic growth rate of A.<? percent in year ,?1?$11 .4ne of the contributing factors of high 3'. growth rate in India during ,?1?$11 was the real estate mar)et .Thus, the real estate mar)et and real estate investors play important roles in the economic growth of India. &ince the Indian real estate mar)et is one of the emerging mar)ets in the less A

developed economics of countries and real estate investors play an important role in the development of the Indian economy, it is important to understand the factors that have positive influence on the propensity of Indian investors to invest in the real estate mar)et. Therefore, the resultant thesis is that the propensity to invest in the real estate mar)et depends on investment e(pertise of investors, investors# )nowledge of neutral information, investors# motivation from an advisor, and family8 the purpose of this study is to e(plore these relationships among the above variables.

Commercial and office comple(es mushrooming in major Indian metros present a minefield of opportunities. 4ver ,? million new housing units reEuired in the ne(t < years. The real estate mar)et is projected to grow to F<? billion by ,?1? C03+ of over 9?; p.a. is e(pected over the ne(t five years. Increasing demand for commercial and office space especially from the rapidly growing +etail, IT and *ospitality sectors and the -rban Infrastructure +enewal mission is e(pected to give a boost to the sector. 4ther factors include2 F11.< billion earmar)ed over the ne(t five years for C? cities. Investment opportunities e(ist in almost every segment business 8 0bout ,? million new units e(pected to be built in five years in office space for IT and five$fold increase in office space reEuirement over the ne(t 9 years. Commercial space for organized retailing2 ,?? million sE. ft. by ,?1?. *otels and hospitality2 4ver <?,??? new rooms in the ne(t < years8 Investment opportunity of over F<? billion in the ne(t five years. %*riou, Re*+ E,t*te I.3e,tme.t $2tio., *re:

+eal %state Investment 4ptions 0griculture /and +esidentialG.lotted development 0partmentsGBillas Commercial &paces 5arm *ouses

+eal %state

utual 5unds

AGRI"!LT!RE LAN': 0griculture /and in India is the most protected area by the &tate and Central 3ovt. Identification of 0gricultural /and reEuires a bit of analysis about the rate and assessment of future development in the nearby area. 'ue to fast growing urbanization and development of infrastructure the price of agriculture land zooms Euic)ly. 0gricultural land can be given on contract to cultivators with sharing of crop model, to ma)e small but regular ta($free earnings. +ural agriculture land is completely free from capital gains ta( and income from lease out or sale of crop is also e(empt as per the provision of IT 0ct, 1:C1. RESI'ENTIAL &L$TTE' 'E%EL$&MENT: ost state governments have loosened their fists and have implemented land reforms that ma)e the conversion of agricultural land into residential land much easier. The process of township development ta)es a period of about < to 1? years. Initially, the 1?

prices of plotted development are Euite low which rapidly increases with the pace of development and with the rise in inflation factor. A&ARTMENTS>%ILLAS: 0s per the assessment made in the Indian *abitat .olicy 1::A, the demand for houses in urban area is to the tune of ,, million houses. The gap in demand and supply in housing stoc) has thrown big investment opportunities. >oo)ing at the launching stage and getting the e(it at the completion stage ca offer shining returns on investments. In this process the stamp duty and other ta(es can be legally avoided.

"$MMER"IAL>RETAIL S&A"ES: The retail boom in India has fueled huge demand for commercialGshopping spaces. any 1C#s and big corporate retailers prefer to ta)e prime commercial properties on long$term lease basis. The option offers regular returns besides appreciation in capital value, ta)ing both the returns together gives handsome return and a wonderful combination of regular and a wonderful combination of regular and long$term returns. 1ARM #$!SES>SE"$N' #$MES: any developers are offering lifestyle with smart returns through farm housesGsecond homes. The offer comprises of sale of farm houses at affordable rates with professional property management giving lifestyle and capital appreciation together. REAL ESTATE M!T!AL 1!N'S:

11

&ecurities %(change >oard of India H&%>II has recently allowed the launch of mutual funds which can invest in physical property. any corporates such as *'5C and I'>I are in the process of launching real estate mutual funds. 1A"TS AN' 1IG!RES: In India Construction is the second largest economic activity after 0griculture. Investment in construction accounts for 11 percent of India#s 3ross 'omestic .roduct H3'.I and nearly <? percent of 3ross 5i(ed Capital 5ormation H35C5I. Construction accounts for nearly C< percent of total investment in infrastructure and is e(pected to be the biggest beneficiary of the surge in Infrastructure Investment over the ne(t five years. 0ccording to the %conomic &urvey, India has the potential to absorb -&F 1<? >illion of 5oreign 'irect Investment in the ne(t five years in the Infrastructure sector. The sustained growth and positive outloo) for the future has increased focus on Infrastructure development. 4pening of the Infrastructure development to private players, 5'I and increased investment commitments from the govt. has thrown a host of opportunities for companies in the infrastructure development sector, innovative projects li)e the metro +ail and along with the proposed &%J projects have provided additional opportunities for the & %#s in the sector.

1,

"#A&TER 2
"$M&AN &R$1ILE
Bardhman is one of the fastest growing professional company with 'iverse >usiness .ortfolio in the +eal %state Industry. 7e have earned the reputation for creating the *ighest Kuality, 0rchitecturally &ignificant -rban %nvironments with an unmatched attention to detail. Bardhman is underta)ing some neo$age projects that creates a successful duo in the emerging Indian +eal %state Industry. Bardhman has 9? years of e(perience in developing /andmar) buildings and underta)ing 7orld class commercial projects. Inspired from the glorious past and the upcoming IT .ar)s, we have planned several .rojects for emerging Corporate as well.

19

If youLre loo)ing for prime locations, Euality construction and a long list of standard amenities, loo) no further but Bardhman. Bardhman, one of the fastest growing professional company with 'iverse >usiness .ortfolio in the +eal %state Industry has assigned outdoor promotion duty of their upcoming projects to +eal %state Industry. Bardhman has a vast 9? years of e(perience in developing /andmar) buildings and underta)ing 7orld class commercial projects. Inspired from the glorious past and the upcoming IT .ar)s, they have planned several .rojects for emerging Corporate as well. annat H I & Ilaid down prominent areas, media tools and innovative ideas to e(ecute the campaign at a larger scale in 'elhi 1C+, /udhiana, 6anpur M 3uwahati. I & delivered the best and the beautiful outdoor coverage for Bardhman by providing highly visible hoardings at major traffic junctions, flyovers and mar)ets. annat innovative media solutions H I &I. Bardhman is underta)ing some neo$age projects that creates a successful duo in the emerging Indian

"!ST$MER "ENTRI" ATTIT!'E:

To ensure complaint free operations with total customer satisfaction by resolving customer#s issues with utmost attention and speedy services round the cloc)

BRAN' %AL!E:
To deliver the projects "differently# and ma)e the customer to feel at ease and comfort and create the "Bardhman >rand# a most trusted brand.

In-Flight Bran ing !ith "#t Air!a$%

1@

INN$%ATI$N T#R$!G# TE"#N$L$G : Bardhman would be effortful and creative to identify and deliver something new, matching the technological up gradation in the +ealty sector, all around the globe. "$R&$RATE S$"IAL RES&$NSIBILIT : Bardhman would concentrate towards development of affordable houses for the masses, to reach to the heart of all. EM&L$ EE "!LT!RE: To )eep on constantly searching for the talented employees, developing employee retention policies, providing continuous training and development to facilitate them to contribute completely in the growth of the organization

"#ARA"TER6 ET#I"S AN' %AL!ES: Bardhman would be governed by its professional policies and procedures to ultimately benefit its values customers. The transparency of the policies would be maintained through the company#s operational manual. 0dhering to the manual would be mandatory for all, with tan ultimatum objective to ma)e the Bardhman N5avourite of all# and to create N%thical >rand BalueO within a short span. "$R&$RATE $11I"E : 1ew$'elhi, 1oida

1<

$r5*.i?*tio.*+ Stru-ture:
%*rdhm*.@, Te*m The groupLs strength lies in its panel of dynamic, young, Eualified and highly e(perienced management. The structured M unified mar)eting model followed in Bardhman has helped in building a strong networ) of Channel partners. Bardhman also has a dedicated customer care centre that comprises of e(perienced e(ecutives.

&R$'!"T &$RT1$LI$ 8:

%AR'#MAN AL1ASA!ARE
EB2+ore A (ho+e Ne4 Me*.i.5 $0 E.tert*i.me.t
&witch from your office des) to a comfortable plush multiple( seat within minutes. ThatLs the freedom to be. ThatLs the new face of your lifestyle. The multiple( facilities at 0lfa &Euare will ma)e life happier not only for the residents of 3reater 1oida, but also infuse a happy convenience for the office goers in and around 0lfa &Euare. 0nd in all this arrangement, why leave the )ids aloneP >ring them to the 6ids Jone, let them e(plore their world in their own way. 1C

S2e-i*+i?ed E.tert*i.me.t ?o.e C 'o+by di5it*+ -i.em*ti- eB2erie.-e C "om0ort*b+e ,e*t, 4ith *m2+e +e5 ,2*-e C Kid, ?o.e

%AR'#MAN@S GALLERIA BEST S!ITE' 1$R

"$MMER"IAL

S&A"E

+etail art, Consumer 3oods, 'epartment &tores, 0irline Companies, &howrooms, 5ast $ food joints, +estaurants, *ealth G &.0, 5ashion 0pparel M 0ccessories, *ome M /ifestyle .roducts, 3ift &hop, =ewellery &howrooms, 0rt M Craft, 0T s, %(porters G Importers, Travel 0gents M any others.

I8%ALLE 6 AN !LTIMATE IT 'ESTINATI$N

i$valley, 3reater 1oida, is all set to emerge as an epitome of India Ls dream run in the field of IT and IT%& . i$valley is e(pected to be one of the IT par)s of its own )ind. /ocated at the heart of 3reater 1oida, i$valley will catalyze the growth of a burgeoning suburban city. I$valley illustrates the finest of the 0dvantage that include$ Kuality >usiness &pace, +eliable &olutions and an International >usiness /ifestyle second to none. Its world$ class business infrastructure amidst wide green spaces provides an e(cellent environment for 5ortune <?? corporations, 1Cs and leading local corporations. %(perience a hassle$free set$up at i$valley. *ere at i$valley, all your business and employee needs are ta)en care of that include comprehensive lifestyle amenities,

regular shuttle bus services, ample par)ing and all the conveniences needed in IndiaLs most comprehensive wor)$live$play business space.

%AR'#MAN S&RING'ALE
1D

Spring. The season of blossoms. Budding of trees, the green baby leaves, the fresh turned soil with new flowers, and the arrival of the green grass. It's the time of rebirth. Beginning of a whole new life. The beauty in the world around rejuvenates spirits and heals the past. It's the time when you attain a new life.

It -o.t*i., <<< u.it,.

#*3i.5 1B#K to 9B#K *2*rtme.t,

1A

%AR'#MAN %E'I" S!ITES 1 B#K ST!'I$ A&ARTMENTS IN S$1T LA!N"#

1:

"#A&TER 9
REAL ESTATE AS AN IN%ESTMENT $&TI$N

Re*+ E,t*te6 A Good I.3e,tme.t $2tio.: 0re you fatigued by the diminishing income and ris)$factors associated with main$ stream investment avenues ! fi(ed deposits, stoc)s, mutual funds, etc.P Thin) Qreal estateL2 a lesser e(plored investment option.

Re*+ E,t*te I.3e,tme.t ,t*.d, out: R Kuantum of investment reEuired is high R Investment horizon is long R 'ual returns are available in form of rental income and capital 0ppreciation The &romi,i.5 A3e.ue, o0 Re*+ E,t*te I.3e,tme.t: R 4ffices R &hopping malls R +etail outlets R Industrial warehouses

,?

"!RRENT IN'IAN REAL ESTATE S"ENARI$:

R .eriodic returns on commercial property ranges from 1? to 19 percent .er year R The Indian real estate industry has a growth rate of 9< to @? percent 0nnually R The demand for real estate is pic)ing up as the IT industries set up their >ase in India or loo) for e(pansion in these cities. R Top financial companies have recognized the advantage of India as a >usiness process outsourcing destination and had started e(panding their business. R Companies are increasingly switching over to renting office premises. This offers fle(ibility in operations and avoids loc)ing capital. R Companies operating in automobile design, auto components anufacturing, computer aided design and drawing are also entering India in search of acEuisition of space preferably as ready$to$occupy premises. R +eal estate developers are offering premises on long lease to the companies. R Individual investors are benefiting from the developing commercial real estate mar)et in India by investing in pre$leased properties. R 1orris G .ies are investing in real estate as the rental income and capital used to purchase the property is easily reparable.

,1

1!N'ING S$!R"ES S!&&$RTING IN%ESTMENT IN REAL ESTATE:

R >an)s R 5inancial institutions R *igh net worth individuals R +eal %state utual 5unds

&ro-edure, to be 0o++o4ed be0ore I.3e,ti.5 i. Re*+ E,t*te: R 5ind out credibility of the developer. R Chec) out the attractiveness of property to tenantsG buyers R 7eigh future value potential R 3et to )now the chances of project completion Hin case it#s under ConstructionI R Investigate the Euality of project R %(plore the availability of financing option R Ta)e advice from a reputed and a credible real estate consultant. R Consult a reputed financial institution

&electing a right option to invest hard earned$money is always a matter of big confusion. The decision ma)ing process reEuires in depth analysis of available options which suits the needs of a particular person or organization. 0 complete analysis and overview of investment decision ma)ing with innovative solutions are given hereafter.

,,

IN%ESTMENT NEE'S: The investment needs depend on the reEuirements of a particular person about the liEuidity of funds and his capacity and temperament bear ris). The ta( implication on return of investment to the investor is always a crucial matter for choosing the right option.

"om2*r*ti3e 1e*ture, o0 I.3e,tme.t $2tio.,

5eaturesS T4ptions ..4G>an)G3ot. /iEuidity &afety Convenience Ta( 3ood >enefits 3ood 1I/ 0ppro(. +4I C$A;U A$1?;U

4ptions +easonable 3ood

&ecurities >ondsG'ebentures +easonable +easonable +easonable &haresG utual 5unds 3ood *igh +is) +easonable

+easonable 1,$1<U V7ith high level of uncertaintyW +easonable <$D;UU

>ullion[3old and 3ood &ilverX +eal %state

3ood

3ood

+easonable +easonable 1ot

so 3ood

1@$,@; V*igh +eturnsW

Convenient

,9

GRA&# $N RET!RN $N 'I11ERENT IN%ESTMENT $&TI$NS

*& )' )& (' (& ' & PO+Ban,+g-.t.% #/. B1lli-n23-l + %il.#r4 B-n +D#0. Shar#%+M1t1al F1n R#al E%tat#

5 6r-7 5 t-

Re*+ E,t*te i. GREATER N$I'A & N$I'A: 3+%0T%+ 14I'02 .aving way for major urban development wor) in the region around the Yamuna %(pressway, which connects 3reater 1oida with 0gra, the 1C+ .lanning >oard has approved the first phase of the aster .lan ,?91 of the Yamuna %(pressway Industrial 'evelopment 0uthority HY%I'0I. 0ccording to the master plan, the 0uthority will develop the area up to =ewar, which will include <A@ sE )m of 3autam >udh 1agar and >ulandshahr districts. The plan has now been forwarded to the -ttar .radesh state government for final approval. 0s per the aster .lan ,?91, the population in the Yamuna %(pressway area will be around 9< la)h in the ne(t two decades. The 0uthority, therefore, has proposed residential development in a total area of ,<,??? hectares. The plan includes 1A group housing units, whereby plots between 1?? and ,?? acres have been allotted by the 0uthority to private developers along with another ,1,??? individual plots. The plan for phase$I also plans to connect the region with others through e(pressways li)e the %astern .eripheral %(pressway and the 3anga %(pressway. 0 19?m$wide railroad corridor connecting it with 6hurja in >ulandshahr and .alwal in *aryana has been planned. To connect the sectors with adjoining regions such as 6hurja, >ulandshahr and .alwal, the 0uthority has proposed to construct a 1,?m$wide road. The roads connecting Y%I'0 sectors with 3reater 1oida and 1oida will be 19? metres wide. ,@

The 0uthority has also allocated more than ,? sectors for commercial development. 4ther salient features of phase$I of the plan include a Zworld classZ &ports City, an inter$state bus terminus, a transport nagar, two power generation plants, each having a capacity of ,,??? megawatts and procurement of 3anga water for residents. ZThe area between 3reater 1oida and =ewar covered in the first phase of the master plan includes 199 villages spread across an area of <A,??? hectares. Twenty$five percent of this area has been earmar)ed as dedicated green area, ,?; has been earmar)ed for industrial development and :; for institutional development. The master plan proposes a holistic development plan for the entire area with an emphasis on setting up industrial hubs,Z a senior 0uthority official said. 0ccording to officials, the second phase of the master plan will cover the area between =ewar and 0gra. 14I'02 In order to decongest the city and bring respite to commuters, the 1oida 0uthority has approved the 'etailed .roject +eports H'.+I for si( underpasses on strategic routes along aster .lan$II and III roads. In a meeting on Tuesday, 1oida C%4 &anjeev &aran also directed that '.+s be prepared for three new underpasses. The 0uthority has drawn up a blueprint to steer its residents clear of chaos on roads. 'uring the wee)ly meeting, &aran instructed officials to start the process for construction of the si( approved underpasses with immediate effect. ZThe underpasses will ensure signal$free access at nine busy stretches on these two arterial and important routes,Z said &aran. ZThe focus is on decongesting the most clogged$up roads of the city. 0s suggested by our consultants +IT%&, construction of underpasses including flyovers and elevated roads will ta)e place in a phased manner,Z said 06 3oel, chief maintenance engineer HcivilI, 1oida. Traffic surveys have revealed that these roads see heavy traffic during all times of the day. oreover, due to lac) of space on either side of these roads they cannot be widened, hence there is a need for underpasses and elevated corridors. 0s per plan, the aster .lan$III road from 6alindi 6unj to &ector D1 will have three underpasses, while another three will be built on aster .lan$II road from -fle( crossing to &ector 1C0. -nderpasses are also planned on the route from 0tta underpass towards &ector C? crossing. %arlier, there were two elevated roads planned along aster .lan +oad$II from Bishwa >harti .ublic &chool to &hoppri( all in &ector C1 and on aster .lan +oad$III from &ectors C?, C1 M D1 crossing to 1*$,@, but the plan was shelved due to it not being feasible.

,<

TRA11I" MASTER &LAN 2091:

,C

IN'IA: REAL ESTATE S"ENARI$

,D

GR$(T# A"R$SS GE$GRA&#IES

,A

IN'IA@S &R$&ERT SE"T$R: "RE'IT STRENGT#S In the residential sector, a growing middle class is enjoying rising income levels. Combined with smaller household sizes, this demographic change has boosted demand for more modern housing and home loans. eanwhile, increasing consumer spending power has encouraged growth in organized in organized retailing ! both feeding off and contributing to the spear of "mall culture# and the popularity of other large$scale retail property developments. In the commercial property segment, strong growth in the services sector ! particularly in the IT and IT%& sectors ! and corporate growing scale of operations have led to greater demand for commercial space, including modern offices, warehouses and lodging space. any 'evelopers have substantial plans to increase both their size and geographical spread. They are also e(panding into different )inds of properties, which can boost the firms# franchise values and reduce concentration ris)s. ,:

*owever, managing and financing such activities can be a challenge, and puts a premium on financial fle(ibility, capital access and operational infrastructure. The property industry is also wrestling with oversupply in certain areas, such as in India#s commercial property sector, which may lead to rent reductions and value drops. eanwhile, property firms must also cope with a reduction in customer advances on new construction, increasing land values Hma)ing acEuisition and development deals tougherI, rising interest rates since ,??<, and increased difficulty in arranging capital. The latter is e(acerbated by rising interest rates and property prices, which have encouraged ban)s to become more selective in granting loans as they try to preserve asset Euality.

9?

"#A&TER ;
ST!' $1 "$M&ETIT$RS
"om2etitor,: '/5 =0Y.%% &-.%+T%C* 0 0+.0/I -1IT%C* 4 0[% %/'%C4 01&0/& .0+&B10T* '%B%/4.%+&

'L1: '/5 presently has its land ban) in 91 different cities, through with a small presence Hless than 1?? acresI in ,? of these. In addition to <D@ mn &E. ft. land ban), '/5 has ,9 super lu(ury hotel sites, a golf course and clubs. Too large dependence on 3urgaon2 The total land ban) of 1?,,,< acres is highly s)ewed in favors of 3urgaon. '/5 has appro(imately D, percent of its total land ban) in 3urgaon H@C percentI and in 6ol)ata H,9 percentI together. '/5 has a total debt of +s. :@.<bn and an outstanding amount of +s. <<.@bn towards land +s. :@.<bn and cost. 4f the total debt of +s. :@.<bn, D< percent is on a floating rate basis which is a ris) in a rising outstanding land interest rate environment. '/5 had capitalized +s. 1.1bn out of the total interest charge of cost is +s. ,.Abn for 5Y?C 91

and estimated the interest charge for 5Y1? would be +s. <.@bn, on a conservative basis, as interest rates have gone up by roughly 1<? percent in the last nine months. 0 total of 1?,,<< acres translates into <D@mn. &E. ft. of saleable area, the total <D@mn sE. ft. involves the development of plots of @Cmn sE. ft., residential apartments of 9DDmn sE. ft. '/5 is of the opinion that its present land ban) is sufficient for the ne(t 1?$11 years. 4ut of <D@mn sE. ft., '/5 has a total of @Cmn sE. ft. under development as of 9? 1ovember ,??C, between 5Y?D$?: with :m sE ft under residential8 ,Cm sE ft under commercial and 11m sE ft under retail development. &napshot of '/5 past and future developments plans 'evelopment Completed .lots +esidential Commercial +etail 1:< 1D C , In .rogress $ : ,C 11 .lanned @C 9D< C, @< .lan for year ,??A$?: $ C:.A @A., 91.D

!NITE"#: The +s. 1C??crores -nitech 3roup is one of the ajor Township .lanning and real estate development companies in India and has a diverse business portfolio of heavy construction, leisure and entertainment projects, hospitality business and residential property developments. 0fter playing second fiddle to '/5 in 3urgaon, the low$profile -nitech 3roup is gradually asserting itself in the real estate mar)et of the national capital region. In ay ,??C, in an upset of sorts, -nitech got the better of '/5 by grabbing 9@< acres of prime land in 1oida for whopping +s. 1<A, crores. -nitech has a land ban) of 1?<?? acres whose brea)down is shown below and its future plans are of <??m sE ft for the year ,??A$?: for which they need huge amount of funding. -nitech >uilder plans to use the 1oida land to ma)e @??? top$of$the$line apartments priced at +s. , crores H+s. ,? millionI each. The investment reEuired to build this dream residential project2 +s. 9??? crores H+s. 9? billionI. >esides in)ing this mega deal, -nitech has been on a land$buying spread across the country $ from 3urgaon to 6ol)ata, 6ochi, *yderabad and Chennai $ to establish a pan$Indian presence. In the last few months, the 3roup has created a land of over A,??? acres.

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&ARS%NAT# 'E%EL$&ERS: .arsvnath developers announced that they would invest +s. 1C?? crores over the ne(t three years to construct a metro station cum shopping mall near the Commonwealth 3ames Billage in the 1ational Capital. The metro station cum shopping mall is spread over D.9 acres and about 9.C<la)h sE. ft. of retail space would be developed. This will be the 1,th mall which the .arsvnath will develop at metro stations, owned by 'elhi etro +ailway &tation Corporation, a building operator transfer basis. .arsvnath projects cover saleable area of 19@ million sE. ft, including owned land development rights8 this does not include land owned in &%J business. 4ngoing projects are spread over 1D states and @C cities. -pcoming .rojects +esidential 1o. of&aleable .rojects 0rea 91 9,.AA @.:1 'evelopment MTotal CostTotal Cost /and Cost Construction Cost in +upees in -&F 19@@.: D:<.CA 9:DA.9, A??.1, <9,9.9 1<:<.A 11A9 9<@.C,

Commercial ,1 Integrated Township IT .ar) ' C+ *otels Total

,1 @ C 1D 1??

AC.?C C 1.@C ,.C: 19@

11,1.? @.<< ,DC.C@ ,@D.91 9D:?

D@?<.A :1< ,C? C,D 1@???

A<,C.A :1: <9C AD< 1A???

1A:@.A ,?@ 1,? ,?? @???

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$MA)E: It started in 1:AD as a vision, to realize the dreams of millions across the length and breath of our country, is today an I&4 :??12,???, 'M> <0, rated organization that proudly boasts of over a 1?? successfully completed projects under its belt. 0t 4 0[% we believe that our spectacular performance, e(tra$ordinary growth and spotless trac) record over the past 1: years are proof of the infinite possibilities that lie within us. It is the belief that puts 4 0[% in the forefront of this multi$billion industry as a pioneer with an unsha)eable reputation for delivering what is unconceivable for others. It also bec)ons us to continue realizing the dreams of million into reality. 4 0[%, one of the IndiaLs fastest growing +eal %state developers, has registered its presence across the country with a healthy mi( of projects that range from well planned office spaces to international standards townships, group housing, state of the art malls, commercial comple(es, multiple(es, theme malls, resorts, hotels, service apartments etc. The company has also diversified into IT par)s, bio$technology par)s, &%Js etc. Today, 4 0[% enjoy a reputation of being one of the IndiaLs premier +eal %state 'evelopers with an indelible focus on customer satisfaction. This feat has been achieved through the adoption of Euality system standards that integrate technological and design innovations with a strong technical base to provide state of the art real estate options.

0t 4 0[%, the human mind and spirit continue to be our most precious resource and a critical ingredient in the spectacular success of our endeavors. Today 4 0[% boasts of over A?? Eualified men and women who are successfully turning their dreams, and dreams of million into reality. *aving registered phenomenal start based on the successful acEuisition and implementation of a large number of highly challenging and hugely varied projects, all in a short span of under two decades, 4 0[% today enjoys the reputation of being 1orth IndiaLs fastest growing +eal %state 'eveloper.

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Thus, the company having to compete with big competitors still stands out uniEue and different owing to its incredible features, e(periences and team wor). It always wor)s for the benefits of its customers and to give them Euality products at affordable prices.

"#A&TER <
LITERAT!RE RE%IE(

There are many factors such as investment e(pertise of investors, investors# )nowledge of neutral information, investment motivation from an advisor, etc., that influence the investment propensity of investors. Investment propensity, in the conte(t of this study, is defined as the e(tent to which investors are inclined to invest in the real estate mar)et to2 iI get rich Euic)ly, iiI diversify ris) and iiiI obtain higher rate of return. %merging mar)ets for investment feature slightly higher ris) levels than the developed nations of the world. Investment ris) is a multidimensional construct with four principal attributes2 iI the possibility of a very large loss, iiI the possibility of a below target return, iiiI the ability to control loss and ivI the investor#s level of )nowledge. The investor#s level of )nowledge is one of the principal ris) attributes that impact on investment propensity. The relative importance of the investor#s level of )nowledge attribute is a function of idiosyncratic investor and asset characteristics.

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Improved investment )nowledge and e(perience enable consumers to ma)e better investment decisions. That is, the more accurately investors perceive ris), the better they understand the lin) between ris) and return in the Indian real estate mar)et8 and the better the understanding of the lin) between ris) and return in the Indian real estate mar)et, the higher the investment propensity of investors. +is)$ averse investors continue to be attracted by relative stability of residential properties and buildings. Investors# investment )nowledge and e(perience have positive and negative impacts on their propensity to invest capital in the real estate mar)et. That is, if Indian investors perceive higher ris) in the Indian real estate mar)et, they are reluctant to invest capital and vice versa. Investor )nowledge of "neutral information# plays an important role in investment decision ma)ing process. Investors# propensity to invest capital is positively affected by their own perceived )nowledge of neutral information. Thus, investors do not rely on a single integrated approach, but rather on many categories of factors such as price movement in the real estate mar)et and current economic indicators He.g., business cycle, 3'., etc.I.

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"#A&TER =
RESEAR"# MET#$'$L$G
$bDe-ti3e, o0 the Study: 1. To identify the scope of investment in various states, especially outside 'elhi 1C+ 01' /-C6147 ,. To identify the current trend of +eal %state, in areas across 'elhi, 1C+, -.../-C6147, 1oida and 3reater 1oida. 9. To identify the reasons of investment in various states. @. To identify the reasons of people for not investing in various states. <. To identify the preferences of customers.

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C. To evaluate the effectiveness of major real estate players. Ty2e o0 '*t*: The data collected is .rimary data and &econdary data which is both Euantitative and Eualitative data, which was further analyzed in order to draw conclusions and suggestions.

'ATA "$LLE"TI$N AN' MET#$': 'ata was collected by visiting +eal %state 0gents across -... /-C6147. 'escriptive +esearch method was used for data collection which proved to be Euite beneficial for carrying out mar)et research.

LIMITATI$NS $1 ST!' :
1. >iasness of the real estate agents towards a particular company. ,. /ac) of )nowledge of the agents about areas outside their scope. 9. 0gents catering to a specific )ind of mar)et, tend to favor those options. @. &ome generalizations by the targeted agents.

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"#A&TER 7
'ATA $BSER%ATI$N6 &RESENTATI$N & 1IN'INGS
$BSER%ATI$N:
(e*+thy i.3e,tor, eB2e-t to i.-re*,e their *,,et *++o-*tio. to 2ro2erty: 4ver the ne(t two years, 9< per cent of respondents plan to increase the proportion of property in their portfolios Hnot including their primary residenceI, while @A per cent plan to maintain their current allocations. The main reason that investors give for the increase is that they believe property offers better long$term prospects than other asset classes. Some i.3e,tor, m*y *+re*dy h*3e eBtreme+y hi5h eB2o,ure to 2ro2erty: 0lmost si( out of ten investors from 1oida, and just under 9? per cent of those, say that <? per cent or more of their portfolios are in property. 0llocation also tends to increase with wealth2 among those respondents or more in assets, almost @? per cent say that they have allocated more than half their portfolio to property.

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I.3e,tor, -*. ,ee o22ortu.itie, i. the 2ro2erty m*rEet6 but the ,-*r-ity o0 -redit i, -o.,tr*i.i.5 their o2tio.,: 5ollowing a prolonged downturn in property mar)ets around the world, high net worth investors are once again eyeing opportunities in the sector. Three out of four wealthy investors say that residential property is loo)ing attractive, but C? per cent of them say that tight credit conditions are preventing them from Nta)ing the plungeO. +espondents are slightly less sanguine about opportunities in commercial property, with CA per cent saying that they are )een to e(plore opportunities, but D9 per cent of them feel hampered by the high cost of borrowing. There i, 5ro4i.5 -o.0ide.-e *bout the medium8term out+ooE 0or 2ro2erty6 but 2ri-e, m*y h*3e 0urther to 0*++ i. the .e*r 0uture: 0lthough they recognize that current mar)et conditions are throwing up significant investment opportunities, high net worth investors give a cautious assessment of the prospects for their own property portfolio. =ust under half e(pect an increase in the overall value of their property investments over the ne(t two years, while ,: per cent e(pect no change and ,9 per cent e(pect a decrease. 0cross the ten focus countries, fewer than half of respondents believe that prices have reached their lowest point in their own mar)ets. I.3e,tor, m*y be +e,, di,2*,,io.*te i. their *22ro*-h to m*.*5i.5 2ro2erty i.3e,tme.t, -om2*red 4ith other *,,et -+*,,e,: 0n emotional attachment to bric)s and mortar ! often stemming from the central role that homes play in people#s lives but also due to factors li)e prestige and location ! can mean that high net worth investors are often unwilling to sell property at short notice and, therefore, they may be less rigorous in measuring its performance as an asset class. Investors also may not be ta)ing advantage of the diversification possibilities within property as an asset class. 5or e(ample, just ,: per cent hold indirect property investments, such as mutual funds and real estate investment trusts, when these can offer a relatively liEuid way to gain e(posure to real property across a wide range of sub$sectors and mar)ets. A ,i5.i0i-*.t+y 5re*ter 2ro2ortio. o0 4ome. th*. me. *re Eee. o. i.3e,ti.5 i. 2ro2erty: 7hen it comes to property, the survey reveals a stri)ing variation in the attitudes of the two se(es. 1early half the women surveyed say property is a less ris)y investment than stoc)s, whereas only 9D per cent of men agree with that view. &imilarly, while @@ per cent of women find buying property more enjoyable than investing in other asset classes, just ,A per cent men feel the same way. 7omen also tend to favor investing directly in bric)s and mortar more than men. 7hile 9@ per cent of men are li)ely to invest in property indirectly through a fund, only 1@ per cent of women would prefer to go down that route. @?

1IN'INGS:
1. Customers have a short history of real estate investment but are currently increasing their allocation to the real estate, more so than eEuities, debt and commodities. ,. /egal and regulatory ris), hard to determine the best opportunities and ris) of poor professional advice are given as the main reason for real estate investing. 9. 'espite of developers investing their large part of funds on entertainment centers li)e shopping malls, multiple(es etc. large part of customers prefer to invest in residential projects such as plots and group housing. @. +esidential property is gaining as an attractive mode of investment of middle class people leading to growing demand.

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<. The most important factors influencing the real estate asset allocation decision are statistical estimates of ris) and return, advice from e(ternal consultants and long term historical performance. C. 'espite of billion of money spent on brand advertising, customerLs rate brand$ strength as a wea) influence at best on their purchase decisions. D. 7ith the shifting of more and more companies and offices to the suburbs, growth in the suburban residential real estate mar)et has been witnessed. /avish townships with good Euality construction replete with lu(urious amenities and facilities are now coming up. A. 0t present, 1oida and 3reater 1oida are places of *uge Investment where +eturns are high as C4 .0I+%' T4 /-C6147. It is becoming the hub mainly for Commercial Investments with good returns especially for ITGIT%& spaces.

"#A&TER 7
"$N"L!SI$N & S!GGESTI$NS
"$N"L!SI$N: The real estate mar)et in 1orthern India especially in 'elhi 1C+ region, /uc)now, 1oida M 3reater 1oida has tremendous potential and a cut throat competition has already started among the developers to seize this opportunity. The city offers some @,

distinct advantages which are not present in other cities. The city is one among the greatest real estate playing cities where huge investments are attracted with larger returns and has high potential. >esides, improving infrastructure in terms of road networ)s, good educational institutions, organized retail, creation of employment opportunities by the public and private sector companies are additional factors. 0lso availability of land at affordable prices and being a metro city, has led private developers to venture into the mar)et. It is because of these reasons that a study into the perceptions and e(pectations of the people of 'elhi regarding the present real estate scenario assumes importance.

0n effort has been made to provide a clear view about +eal %state and its present state in '%/*I 1C+ region with special reference to 1oida M 3reater 1oida. The projects of Bardhman depicts some uniEue Eualities which is Euite different from other real estate players and for this reason, large amount of investors are attracted from all over India .

S($T ANAL SIS:

STRENGT#S: >rand 1ame$ within 9? years, the company has created a brand image of its own well eEuipped in the mar)et. 7idely spread 1etwor) of 'ealers M &uppliers$ its contacts and networ)s are spread over India.

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0 loyal customer base$ its strong base lies in its customer service where it provides numerous benefits to customers. &trong anagement$ it has a very stable and strong management force which

controls the activities and functions of the organization. &trong >randing$ it#s branding is done largely to create goodwill in the mar)et. %fficient Channel$ the channels of the company are spread over India with big contacts and associates. &trong customer base$ its important strength is loyal to customers and committing to what the company promises. /oyal employees$ its employees are loyal in all departments and do not provide false information to anyone.

(EAKNESSES: Improvement reEuired on networ)ing for small customers as even they are important to the company.. /ess >rand Balue$ it still has to create more brand value through 0dvertising. 1ot enough anpower$ the most important drawbac) of the company is its lesser manpower and for this reason, most of the official wor) gets delayed.

$&&$RT!NITIES: &pecialty products are e(pected to improve to depict it different from its competitors. *igh profit margin is e(pected as the company has projects which should yield large amount of returns. @@

%merging

ar)ets M %(pansion$ It should emerge strong in the mar)et and

e(pand at a faster rate to grow at a larger rate.

T#REATS: Competition in the mar)et$ there is immense competition in the mar)et which is a great threat to the company in the near future. acro %conomic changes$ the economy of real estate changes freEuently. 0s a result, the company may face problems.

If new capacity additions announced earlier go on stream, there could be an over$supply situation in the mar)et which can put pressure on margins.

4ther Competitors$ there are many other big and small competitors in the real estate mar)et which could harm the company#s mar)et position.

S!GGESTI$NS: 1. Investors have a great amount of hope from the company. 0lthough, there are delays in some .rojects, even then, investors feel secured in investing in Bardhman#s projects. @<

,. Clients often face problems with the company follow$up and allotment. 9. In the view of real estate agents, -1IT%C* M '/5 are the best service providers. @. Circle rates of .lots must go up. 3overnment should control the non$ committed trend of upcoming builders. 7ith prices of property, infrastructure should also grow. <. >an) /oan Interest rates must go low for the survival of real estate. C. .eople are not too )een to invest outside 1C+, and bloc) their money for long term. D. There should be no hidden costs, and everything should be crystal clear, which poses a great influence on building brand image. A. 'evelopers should come up with timely projects. Companies should )eep constant correspondence with its customers. There should be a commitment of prices by the company. :. .re$/aunching is a major problem, thereby customers feel cheated by the 'evelopersG0gents.

1?. In 'elhi, in some places li)e &outh 'elhi, there is a high demand of floors, than its supply.

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11. 0 significant reason for people to not invest outside 1C+, is that there are still good options left in 1C+.

1,. It is noted that there is a good amount of scope on 3omti 1agar %(tension /uc)now, as the foresight of the agents see many colonies flourishing on the highway.

19. It is seen that there is a great demand for , M 9 >*6 0partments in /uc)now, but lac) of supply.

BIBLI$GRA&# :
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B$$KS: 6othari C.+.$ N+esearch ethodologyO 1ew 'elhi Tata c3raw *ill In H:<$1?,I

6otler .hillip !N ar)eting Control.

anagementN$ 0nalysis, .lanning Implementation and

/$!RNALS> MAGAFINES: Corgel, =ohn >., *albert C. &mith, M 'avid C. /ing, Real Estate Perspectives, >oston2 IrwinG c3raw$*ill, 9rd ed., 1::D. *oward, =ohn 0. and =agdish 1. &heth, The Theory of Buyer Behavior. 7iley, 1:C:.

-rbany, =oel %., .eter +. 'ic)son, and 7illiam /. 7il)ie, >uyer -ncertainty and Information &earch, Journal of Consumer Research, &eptember 1:A:, 1C, ,?A$,1<.

(EBSITES: www.vardhmans.com www.+ealtyTimes.com www.realestatesncr.com www.indiaproperty.com www.wi)ipedia.com

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