A Project Report On Kalpataru

Registration No: 107-1121-0064-13
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KALPATARU LIMITED
A PROJECT REPORT ON
Brand awareness & Channel partners management for Real Estate Sector
WITH REFERENCE TO Kalpataru
Real Estate, MUMBAI
Submitted in partial fulfillment of the requirements of the

MASTERS IN BUSINESS ADMINISTRATION
By
AYAN ROY CHOWDHURY
Under the guidance of

Bharat Verma
ASSISTANT MANAGER-SALES
KALPATARU LIMITED
INDIAN INSTITUTE OF SOCIAL WELFARE AND BUSINESS

MANAGEMENT
Indian Institute of Social Welfare and Business Management, Kolkata
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KALPATARU LIMITED
Rohan Vaidya
Manager-HR
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KALPATARU LIMITED
Sr no.
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Content
Student Declaration
Acknowledgement
Executive Summary
Company Profile
Leadership Team
Group Companies
Innovations
CSR
Awards in 2012-13
Real Estate
International Real Estate
Real Estate Broker
Real Estate Appraisal
Real Estate Trends
Real Estate Economics
Real Estate Global Business
scenario
Real Estate sector in India
How real is the hype?
SWOT of real estate sector in
kolkata
Products offered by Kalpataru
Kolkata map
Project Overview
Field Interview Process
Questionnaire
Data Analysis
Research Objective
Data Collection Method
Sampling method
Focal Points of Competitor
meet
Conclusion & Way forward
Things that I learned Through
Internship
Bibliography
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KALPATARU LIMITED
STUDENT DECLARATION
I hereby declare that this project entitled Brand awareness & Channel partners
management for Real Estate Sector submitted in partial fulfillment for the award
of MBA is record of independent research work carried out by me under the
guidance of Mr. BHARAT VERMA, ASSISTANT MANAGER-SALES,
KALPATARU LIMITED, 101 KALPATARU STNERGY SANTACRUZ (E)
MUMBAI-400055.
I also declare that this project is a result of my own effort and has not been
submitted earlier for the award of any degree/diploma/associate ship/prize by any
other institution/college.
PLACE: KOLKATA
DATE: 18th July,2014
AYAN ROY CHOWDHURY

ROLL NO:107/MBA/131101
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KALPATARU LIMITED
ACKNOWLEDGEMENT
I would like to express my sincere gratitude to all those who have been
instrumental in presentation of this project report. No work can be
accomplished alone. It needs various people to give a final stage.
I would like to thank very sincerely to Dr. Sumati Ray (MBA-DAY)
IISWBM for giving her valuable guidance to carry my project in a best
way and giving much needed support and full cooperation for my report.
I am indebted to my project guide, Mr. Bharat Verma (Assistant
Manager-Sales) Kalpataru Limited, who has guided me for the successful
completion of the project.
PLACE: KOLKATA
DATE: 18th july,2014
Ayan Roy Chowdhury

ROLL NO.107/MBA/131101
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KALPATARU LIMITED
EXECUTIVE SUMMARY
PROJECT TITLE: Brand awareness & Channel partners management for Real
Estate Sector
COMPANY: Kalpataru Real Estate,Mumbai
PRODUCT: Luxury 7 star apartments in
Bandra,Avana,Juhu and Lonavla with ticket size varying from
20cr.
6cr to
I have successfully completed my 2 months internship at Kalpataru Limited for the assigned
project titled .Brand awareness & Channel partners management for Real Estate
Sector
Bharat Verma, Assistant Manager-sales, was my project guider who guided me how to carry
on with the project.
1. Purpose of the study:
The main objective of the study was to create a channel partner network throughout
Kolkata.
This project is also expected to accomplish following task
1. Create a better understanding of Competitors work in Kolkata.
2. Create a perception about channel partners in Kolkata.
3. Create a database of channel partners willing to work with Kalpataru and have probable customers in
Mumbai/Pune.
4. Create a better understanding about the real estate sector in the eastern part of the country
5. Create awareness about Kalpataru among channel partners
In our project we have been assigned particular areas in Kolkata. We had to go and visit
Competitors to create a better understanding about Kolkata real estate sector. Bengal
Ambuja,Unitech,Merlin,Emami,DLF,Emaar MGF,Godrej are few of the big guns already
working in Kolkata. We had to create a perception about which section of the crowd they
are targeting more in Kolkata region, which kind of amenities they are providing and
which price segment are they targeting.
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KALPATARU LIMITED
Per sq ft. price of the total area and carpet area is one of the many important aspects of
the competitor study.
After competitor study we had to visit channel partners throughout Kolkata (pre decided
locations) to create a better awareness about kalpataru real estate and also try to
understand the real estate sector scenario in Kolkata.
The main purpose of the study however was to understand whether those channel
partners have any prospective customers in Mumbai. Customers who will be willing to
invest in ongoing kalpataru projects.
Despite taking a suburban region where it is difficult to find organized channel partners I
met a total of 87 channel partners (cps) and 6 competitors during my internship.
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KALPATARU LIMITED
COMPANY PROFILE
Kalpataru Group was established in 1969 by chairman Mr. Mofatraj P.Munot. Kalpataru
Limited, the flagship real estate company of the Kalpataru Group of companies, is one of
the leading real estate development groups in India. The focus has been on the
development of premium residential, commercial, retail, integrated townships, lifestyle
gated communities and redevelopment projects primarily in the Mumbai Metropolitan
Region (MMR) & Pune. The Group is also undertaking projects in other key cities such as
Jaipur, Surat, Hyderabad and Chennai.
The Kalpataru Group has interests in real estate development, property and project
management, engineering, procurement and construction (EPC) contracting for power
transmission and infrastructure projects including road projects, warehousing and
logistics.
The Group was one of the largest Civil Contracting firms in the Middle East, based in
UAE, between 1974 and 1982, and has completed various successful projects including
residential properties, commercial, religious establishments and other projects. From
constructing innovative buildings to developing
futuristic infrastructure, Kalpataru Group has developed more than 80 landmarks till
date.
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KALPATARU LIMITED
Vision & Value
Vision
"To be a brand that is admired as an industry leader for its thoughtfully
designed high quality innovative life spaces, is recognized for its customer and
people practices and is acknowledged for fostering long term relationship with
stakeholders"
Values
Business Ethics
Quality
Prudence
Humility
Respect
Pride
Chairman's Message
What had started as a vision to be a brand that is admired as an industry leader is now a
reality with Kalpataru Limited. Today we are recognised for various landmarks across the
length and breadth of Mumbai. Over the last four decades, Kalpataru Limited has
developed a strong foothold across Mumbai Metropolitan Region & Pune and is wellknown for its thoughtfully designed & high quality innovative life spaces.
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KALPATARU LIMITED
We are proud to be amongst the founding members of the Indian Green Building
Council, which is actively involved in promoting the green building concept in India with
a vision to serve as a single point solutions provider and facilitator for green building
activities in India. With business ethics, quality, prudence, humility, respect, pride at the
forefront, we are happy to be recognized for our customer practices and acknowledged
for fostering long term relationships with stakeholders.
Leadership Team
Mr. Mofatraj P. Munot

Chairman, Kalpataru Group
Mr. Mofatraj Munot is the Founder, Promoter and Chairman of the Rs. 6,300 crore (US
$1.2 billion) Kalpataru Group.
Mr. Parag M. Munot

Managing Director, Kalpataru Limited
Mr. Parag Munot is the Managing Director of Kalpataru Limited, the flagship real estate
company of Kalpataru Group.
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KALPATARU LIMITED
Mr. Anuj MunotDirector, Kalpataru Limited
Group Companies
Kalpataru Power Transmission Ltd.

Kalpataru Power Transmission Limited is a Leading Turnkey Player in power
(transmission - India and overseas / generation / distribution / construction),
infrastructure (oil & gas sector / railways / building & factories / roads & bridges) and
asset creation (transmission system / roads / logistics & warehouse), with a presence
across India and in more than 30 countries globally.
Kalpataru Power Transmission Limited is a listed entity of Kalpataru Group. It continues
to explore development projects in various infrastructure sectors. The company is
currently executing / supplying to several customers in Africa, the Middle East, Far East,
Australia, USA and Canada.
Link to website: www.kalpatarupower.com
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KALPATARU LIMITED
JMC Projects (India) Ltd.

JMC Projects (India) Ltd. is a leading contracting company undertaking civil & structural
work for commercial & residential buildings, industrial, infrastructure and power plant
projects at various locations in India.
Founded in 1982, JMC Projects (India) Ltd is one of the leading civil contracting
companies in India. It has a strong workforce of professionally qualified construction
managers, engineers and supervisors backed by latest construction equipment's &
technologically advanced work environment. The company's strength has been its
commitment to the timely completion of projects with due emphasis on project
management, quality & safety. Armed with the technical expertise gained through a
varied range of executed projects, it can take up any challenging and fast track project.
The corporate office for JMC projects (India) is located in Ahmadabad with other regional
offices at Bangalore, Delhi, Hyderabad, Kolkata, Mumbai and Raipur.
With a proven track record of completing prestigious projects within the scheduled time
and quality parameters to the customer's satisfaction, it is one of the few construction
companies certified under ISO 9001:2008 quality system ISO 14000: 2004
Environmental Management and BS OHSAS 18001:2007 Occupational Health & Safety.
Link to website: www.jmcprojects.com
Property Solutions India Pvt. Ltd.

Property Solutions India Pvt. Ltd. (PSIPL) was established in 2000. It is one of the
India's largest indigenous companies in Project Management & Development (PMDS) and
Integrated Facility Management Services (IFMS).
At PSIPL, a large pool of intellectual resources along with incisive industry expertise
ensures that the requirements of clients from diverse sectors like IT-ITES, BPO/KPO, real
estate, BFSI, healthcare, pharmaceutical, retail, education, residential, manufacturing
and media are met. Applying an integrated approach, it provides end-to-end, value
added services with a constant endeavor to move up the value chain.
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KALPATARU LIMITED
PSIPL has ambitiously ventured and added industrial and institutional food and catering
to its portfolio of services. Its uncompromising approach towards quality has been
recognised and acknowledged by its clients. The ISO 9001:2008 and OHSAS
18001:2007 certifications are a testament to the companys quest for quality and safety.
Link to website: www.psipl.co.in
Shree Shubham Logistics Limited

Shree Shubham Logistics Limited (SSLL) an ISO 9001 & 22000 Certified Company is a
subsidiary of Kalpataru Power Transmission Limited (KPTL). SSLL was created to serve
the needs of agri-commodity storage sector with the best practices and infrastructure in
ambient and temperature controlled warehouses across major markets in India.
With a pan India presence, it offers end-to-end logistics solutions to all commodity
stakeholders and provides services encompassing storage & preservation, commodity
funding, collateral management, testing &certification, fumigation & pest management,
commodity procurement, trading & exports and branded commodities. SSLL has
developed 12 state-of-the-art Agri-Logistics Parks (ALPs) in Rajasthan & Gujarat in the
first phase. The second phase will be spread across Madhya Pradesh, Maharashtra &
South India.
Link to website: www.ssll.in
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KALPATARU LIMITED
Innovations
Kalpataru Square at Andheri

Asia's 1st and the world's 6th building to get Platinum Level Certification LEED - Core &
Shell by US Green Building Council.
Kalpataru Horizon at Worli

1st residential floor starts at the 14th level so that every flat gets a sea view.
Kalpataru Habitat at Parel

The city's first address to have an independent car park building and sports facilities like
golf putting green, basketball court & a tennis court atop it.
Kalpataru Synergy at Santacruz (E)

The 1st commercial building with triple basement parking.
Swapnalok at Napean Sea Road

Mumbai's first address offering stepped row houses with private terraces.
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KALPATARU LIMITED
E3 Home
First to create E3 Homes. Besides the 2 regular sized bedrooms, E3 Homes provide a
smaller size room, that can be used as a study, pooja or storage room.
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KALPATARU LIMITED
CSR
The Kalpataru Group has always firmly believed in giving
back to the community and accordingly has been
consistently dedicating resources to do its part for the
welfare of the people. Below are listed some of our
corporate-social responsibility initiatives.
The Munot Foundation, a public charitable trust, created by the Chairman, Mr.
Mofatraj Munot in September 1988 is instrumental in carrying out social and charitable
work. Under the Foundation's auspices, numerous acts of charity have been carried out.
The Munot Foundation has been organising regular Osteopathy Camps at Kalpataru
Synergy in Mumbai.
Kalpataru undertakes regular drives involving beautification and maintenance of
city roads and traffic islands to improve the cityscape throughout the city.
One of our projects Kalpataru Heights received the "Best Illuminated Building"
award as part of the City Beautifying Drive. This drive was organised by an NGO.
We have Mobile Crches, organised by an NGO, at a number of our sites. These
Mobile Crches take care of the construction workers' children and educate them while
their parents are at work at the site.
Kalpataru provides educational infrastructure and textbooks and notebooks for
needy students. This is our way of trying to help improve the standard of living among
the less privileged and give them a chance for a better tomorrow. We also help provide
means of livelihood to the widows and senior citizens of our society.
We set up an electric substation to serve the towns of Nakshatrana and Khedoi in
Gujarat after the 2001 earthquake.
We established a drinking water system for the city of Pipar and its surrounding
areas in Rajasthan - a region that has suffered from chronic droughts.
We organised a Free Mobile Surgical and Eye Camp for the citizens of Pipar and its
neighbouring cities. This camp was conducted for ten days, with a record of 45 doctors.
We successfully treated approximately 9000 people at this camp.
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KALPATARU LIMITED
2013-2012AWARDS
Best in Show 'Website Features - User Experience'

Kalpataru Website has been awarded Best in Show
'Website Features - User Experience' at the W3 Awards
2013.
Best Residential Project Of The Year 'Affordable

Segment'
Kalpataru Harmony has been awarded as the best
'Affordable Segment - Residential Project of the
Year' at the CNBC Awaaz Real Estate Awards 2013.
Retail Property of the Year
Real Estate
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KALPATARU LIMITED
Real estate is "property consisting of land and the buildings on it, along with its natural resources
such as crops, minerals, or water; immovable property of this nature; an interest vested in this (also)
an item of real property; (more generally) buildings or housing in general. Also: the business of real
estate; the profession of buying, selling, or renting land, buildings or housing."
It is a legal term used in jurisdictions such as the United States, United
Kingdom, Canada, Nigeria, Australia, and New Zealand.
Residential real estate
The legal arrangement for the right to occupy a dwelling in some countries is known as the housing
tenure. Types of housing tenure include owner occupancy, tenancy, housing
cooperative, condominiums (individually parceled properties in a single building), public housing,
squatting, and cohousing. The occupants of a residence constitute a household.
Residences can be classified by, if, and how they are connected to neighboring residences and land.
Different types of housing tenure can be used for the same physical type. For example, connected
residents might be owned by a single entity and leased out, or owned separately with an agreement
covering the relationship between units and common areas and concerns
Major categories in North America and Europe
Attached / multi-unit dwellings
Apartment An individual unit in a multi-unit building. The boundaries of the apartment

are generally defined by a perimeter of locked or lockable doors. Often seen in multistory apartment buildings.
Multi-family house Often seen in multi-story detached buildings, where each floor is a
separate apartment or unit.
Terraced house (a. k. a. townhouse or rowhouse) A number of single or multi-unit

buildings in a continuous row with shared walls and no intervening space.
Condominium Building or complex, similar to apartments, owned by individuals.

Common grounds and common areas within the complex are owned and shared jointly. There
are townhouse or rowhouse style condominiums as well.
Cooperative (a. k. a. co-op) A type of multiple ownership in which the residents of a

multi-unit housing complex own shares in the cooperative corporation that owns the property,
giving each resident the right to occupy a specific apartment or unit.
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KALPATARU LIMITED
Semi-detached dwellings (in UK, a "semi" is by definition two units with a party wall).
Duplex Two units with one shared wall. (in UK, a duplex is an apartment on more than
one storey)
Single-family detached home
Portable dwellings
Mobile homes Potentially a full-time residence which can be (might not in practice be)
movable on wheels.
Houseboats A floating home
Tents Usually very temporary, with roof and walls consisting only of fabric-like
material.
The size of an apartment or house can be described in square feet or meters. In the United States,
this includes the area of "living space", excluding the garage and other non-living spaces. The
"square meters" figure of a house in Europe may report the total area of the walls enclosing the
home, thus including any attached garage and non-living spaces, which makes it important to inquire
what kind of surface definition has been used.
It can be described more roughly by the number of rooms. A studio apartment has a single bedroom
with no living room (possibly a separate kitchen). A one-bedroom apartment has a living or dining
room separate from the bedroom. Two bedroom, three bedroom, and larger units are common. (A
bedroom is defined as a room with a closet for clothes storage.)
Major categories in India and the Asian Subcontinent
Co-operative Housing Societies (CHS)
Condominiums
Builder flats
Chawls
Villas
Lanes Houses
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Tianjin
Kothis
Havelis
Independent Floors
Lal Dora Where people carry out commercial and

residential activities both.
The size is measured in Gaz (square yards), Quila, Marla, Beegha, and acre.
DEFINITION OF 'REAL ESTATE'

Land plus anything permanently fixed to it, including buildings, sheds and other items attached to the
structure. Although, media often refers to the "real estate market" from the perspective of residential
living, real estate can be grouped into three broad categories based on its use: residential,
commercial and industrial. Examples of real estate include undeveloped land, houses, condominiums,
townhomes, office buildings, retail store buildings and factories.
Unlike other investments, real estate is dramatically affected by the condition of the immediate area
where the property is located - hence the well-known real-estate maxim, "location, location, location."
With the exception of a national or global recession, real estate values are affected primarily by local
factors such as the availability of jobs, crime rates, school quality and property taxes.
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International Real Estate

The term international real estate describes a relatively new phenomenon, beginning in the 1980s
and keeping pace with globalization. The term encompasses real property development, sales and
leasing transactions across national borders. International real estate could be viewed as one of the
most dynamic branches of real estate although it is, by definition, influenced by fluctuating market
value in various sectors between countries, as can be evidenced by the 2008 global credit crisis.
International real estate is best subdivided into two categories: international commercial real estate
and international residential real estate. Some examples of international real estate transactions are:
a citizen of one country purchases a house in another country

a corporation headquartered in one country purchases or leases an office building another
country
a corporation or investment group in one country builds a hotel in another country
International commercial real estate
Most international commercial real estate transactions will take place between corporations and may
involve, lead to or be a consequence of legal, design, urban planning, engineering, financing, and
construction work. From a national government perspective, attracting foreign investment into real
estate development projects can be a key priority for increasing country revenue and a key strategy
for increasing the availability of national infrastructure and amenities.
Some of the factors leading to the growth in the international commercial real estate sector are:
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the post-war growth in urban development and infrastructure in both developed and developing
nations
business' evolution toward multi-national business operations;
the growth in international investment practices enabling investors to look outside their own
countries for above average performing investments.
International residential real estate
Most international residential real estate transactions are generated by individuals purchasing lots or
built units (including family homes, apartments, condominium units). These purchases form the bulk
of what is sometimes referred to as the vacation/second home market or residential tourism market.
If a person wishes to initiate international real estate investment for the individuals or the institutions
portfolio, the person or financial manager may consider multiple avenues. The indirect method of
entering international real estate investment may involve passive investment in securities that are
based on international real estate collateral or passive investment in international real estate service
firms and offices. The direct method of entering international real estate investment may involve total
acquisition or partial acquisition of the foreign property.
For developed countries whose GDP per capita is above threshold level, it is calculate the value of
institutional-grade real estate is 45% of national GDP, which is consistent with data gathered.
However, to determine the size of institutional-grade real estate markets in developing countries
adjustments are made because only the more afuent segments of the population in those countries
have the wherewithal to use such real estate.
Recent Increase in Chinese Real Estate Investing in the United States
A major increase in international real estate investing is taking place recently between China and the
United States. In the U.S., the Chinese are now the second-largest foreign buyers of homes, behind
Canadians, accounting for $7.4 billion of sales in the 12 months ended March 2011, up 24% from the
previous 12 months, according to the National Association of Realtors. Buyers from China and Hong
Kong also spent $1.71 billion on commercial property in the U.S. in 2011, more than quadruple their
investment in 2008, says Real Capital Analytics. Chinese investors are interested in commercial
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projects, residential properties, hotels, golf courses, clubs, land, industrial warehouses, office
buildings, and shopping centers.
Some of the factors leading to the growth in the international residential real estate sector are:
the rise in international tourism and travel;
the baby boomer generation reaching retirement age and looking for more flexible retirement
options;
the increase in available information on the World Wide Web regarding property listings in
countries around the world
The term commercial property (also called commercial real estate, investment or income property) refers
to buildings or land intended to generate a profit, either from capital gain or rental income
Definition
Commercial property includes office buildings, industrial property, medical centers, hotels, malls, retail
stores, farm land, multifamily housing buildings, warehouses, and garages. In many states, residential
property containing more than a certain number of units qualifies as commercial property for
borrowing and tax purposes.
Types of commercial property
Commercial real estate is commonly divided into six categories:

1. Office Buildings This category includes singletenant properties, small professional office
buildings, downtown skyscrapers, and everything in between.
2. Industrial This category ranges from smaller properties, often called Flex or R&D properties,
to larger office service or office warehouse properties to the very large big box industrial properties.
An important, defining characteristic of industrial space is Clear Height. Clear height is the actual
height, to the bottom of the steel girders in the interior of the building. This might be 1416 feet for
smaller properties, and 40+ feet for larger properties. We also consider the type and number of docks
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that the property has. These can be Grade Level, where the parking lot and the warehouse floor are
on the same level, to semidock height at 24 inches, which is the height of a pickup truck or delivery
truck, or a fulldock at 48 inches which is semitruck height. Some buildings may even have a Rail
Spur for train cars to load and unload.
3. Retail/Restaurant This category includes pad sites on highway frontages, single tenant retail
buildings, small neighborhood shopping centers, larger centers with grocery store anchor tenants,
power centers with large anchor stores such as Best Buy, PetSmart, OfficeMax, and so on even
regional and outlet malls.
4. Multifamily This category includes apartment complexes or highrise apartment buildings.
Generally, a fourplex or more is considered commercial real estate.
5. Land This category includes investment properties on undeveloped, raw, rural land in the path of
future development. Or, infill land with an urban area, pad sites, and more.
6. Miscellaneous This catch all category would include any other nonresidential properties such as
hotel, hospitality, medical, and selfstorage developments, as well as many more. [4]
Categories of Commercial Real Estate
Category
Examples
Leisure
hotels, public houses, restaurants, cafes, sports facilities
Retail
retail stores, shopping malls, shops
Office
office buildings, serviced offices
Industrial
industrial property, office/warehouses, garages, distribution centers
Healthcare
medical centres, hospitals, nursing homes
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Multifamily (apartments)
multifamily housing buildings
Of these, only the first five are classified as being commercial buildings. Residential income property may also
signify multifamily apartments.
Additional commercial property information

Elements of an Investment in Commercial Property
The basic elements of an investment are cash inflows, outflows, timing of cash flows, and risk. Your
ability to analyze these elements is key in providing services to investors in commercial real estate.
Cash inflows and outflows are the money that is put into, or received from, the property including the
original purchase cost and sale revenue over the entire life of the investment. An example of this sort
of investment is a Real estate fund.
Cash inflows include the following:
Rent
Operating expense recoveries
Fees: Parking, vending, services, etc.
Proceeds from sale
Tax Benefits
Depreciation
Tax credits (e.g., historical)
Cash outflows include:

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KALPATARU LIMITED
Initial investment (down payment)
All operating expenses and taxes
Debt service (mortgage payment)
Capital expenses and tenant leasing costs
Costs upon Sale

The timing of cash inflows and outflows is important to know in order to project periods of positive and
negative cash flows. Risk is dependent on market conditions, current tenants, and the likelihood that
they will renew their leases yearoveryear. You need to be able to predict the probability that the
cash inflows and outflows will be in the amounts predicted, what is the probability that the timing of
them will be as predicted, and what the probability is that there may be unexpected cash flows, and in
what amounts they might occur.
The total value of commercial property in the United States was approximately $11 trillion in 2009, as
measured by the CoStar Group and published in the Journal of Real Estate Management.
According to Real Capital Analytics, a New York real estate research firm, more than $160 billion of
commercial properties in the United States are now in default, foreclosure, or bankruptcy. In Europe,
approximately half of the 960 billion of debt backed by European commercial real estate is expected
to require refinancing in the next three years, according to PropertyMall, a UK-based commercial
property news provider Property Mall. Additionally, the economic conditions surrounding future
interest rate hikes; which could put renewed pressure on valuations, complicate loan refinancing, and
impede debt servicing could cause major dislocation in commercial real estate markets.
However, the contribution plowed into Europe's economy in 2012 can be estimated at around
285 billion according to EPRA and INREV, not to mention social benefits of an efficient real estate
sector. It is estimated that commercial property is responsible for securing around 4 million jobs
across Europe
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Real estate broker

This article is about the North American practice. For other definitions and practices in other
countries, see Real estate. For real property, see Real property.
"Realtor" redirects here. For the real estate industry trade association that refers to its members as
"Realtors", see National Association of Realtors.
A real estate broker or real estate agent is a person who acts as an intermediary between sellers
and buyers of real estate/real property and attempts to find sellers who wish to sell and buyers who
wish to buy. In the United States, the relationship was originally established by reference to
the English common law of agency, with the broker having a fiduciary relationship with his clients.
An estate agent being used as a term in the United Kingdom means a person or organization whose
business is to market real estate on behalf of clients, but there are significant differences between the
actions and liabilities of brokers and estate agents in each country. Beyond the United States, other
countries take markedly different approaches to the marketing and selling of real property.
In the United States, however, real estate brokers and their salespersons (commonly called "real
estate agents" or, in some states, "brokers") assist sellers in marketing their property and selling it for
the highest possible price under the best terms.
Buyer's Agent
When acting as a buyer's agent with a signed agreement (or, in many cases, verbal agreement, although a broker
may not be legally entitled to his commission unless the agreement is in writing), they assist buyers by helping them
purchase property for the lowest possible price under the best terms. The real estate broker is obligated to provide
fiduciary duties to whomever that broker services as a client, and this agency relationship can become very
confusing.
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Dual Agent
If the broker is helping both the buyer and the seller, this is referred to as a "dual agency."
Traditionally, the broker represents the seller, and his fiduciary duty is to the seller. If the broker
suggests to the buyer that he will help the buyer negotiate the best price, the broker is practicing
"undisclosed dual agency," which is unethical and illegal in all states under a dual agency transaction,
it is vital that the broker disclose to both parties whom he represents as a client and whom he
represents as a customer. A real estate broker owes his client fiduciary duties, which include care,
confidentiality, loyalty, obedience, accounting, and disclosure. To protect his license to practice, a real
estate broker owes his customer fair and honest dealing and must request that both parties (seller
and buyer) sign a dual agency agreement.
Licensing
In most jurisdictions in the United States, a person must have a license before they may
receive remuneration for services rendered as a real estate broker. Unlicensed activity is illegal, but
buyers and sellers acting as principals in the sale or purchase of real estate are usually not required
to be licensed. In some states, lawyers are authorized to handle real estate sales for compensation
without being licensed as brokers or agents .
The difference between salespersons and brokers
Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their
licensees) only represented sellers, the term "real estate salesperson" may have been more
appropriate than it is today, given the various ways that brokers and licensees now help buyers
through the process rather than merely "selling" them a property. Legally, however, the term
"salesperson" is still used in many states to describe a real estate licensee.
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Real estate education

To become licensed, most states require that an applicant take a minimum number of classes before
taking the state licensing exam. Such education is often provided by real estate brokerages, to
maintain a supply of new agents.
In many states, the real estate licensee (acting as an agent of a broker) must disclose to prospective
buyers and sellers who represents whom. See below for a broker/licensee relationship to sellers and
their relationship to buyers.
While some people may refer to any licensed real estate agent as a real estate broker, a licensed real
estate agent is a professional who has obtained a real estate broker's license. The licensee is one
who has obtained a real estate license and is employed by a real estate broker. Often, licensees refer
to themselves as an "agents", but the true agent is the broker, and the licensee is a representative of
the broker, often referred to as the real estate "salesperson." A real estate broker who works for
another broker is sometimes referred to as a junior broker.
In the United States, there are commonly two levels of real estate professionals licensed by the
individual states but not by the federal government:
Real estate salesperson (or, in some states, Real estate broker)

When a person first becomes licensed to become a real estate agent, they obtain a real estate
salesperson's license (some states use the term "broker") from the state in which he will practice. To
obtain a real estate license, the candidate must take specific coursework (of between 40 and 90
hours) and pass a state exam on real estate law and practice. To work, salespersons must be
associated with (and act under the authority of) a real estate broker. In Delaware, for example, the
licensing course requires the candidate to take 99 classroom hours in order to qualify to sit for the
state and national examination. In each successive year thereafter, the license holder must
participate in continuing education in order to remain abreast of state and national changes.
Many states also have reciprocal agreements with other states, allowing a licensed individual from a
qualified state to take the second state's exam without completing the course requirements or, in
some cases, take only a state law exam.
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Real estate broker (or, in some states, qualifying broker)

After gaining some years of experience in real estate sales, a salesperson may decide to become
licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate
their own brokerage. In addition, some states allow college graduates to apply for a broker's license
without years of experience. College graduates fall into this category once they have completed the
state-required courses as well. California allows licensed attorneys to become brokers upon passing
the broker exam without having to take the requisite courses required of an agent. Commonly more
course work and a broker's state exam on real estate law must be passed. Upon obtaining a broker's
license, a real estate agent may continue to work for another broker in a similar capacity as before
(often referred to as a broker associate or associate broker) or take charge of his/her own brokerage
and hire other salespersons (or broker) licensees. Becoming a branch office manager may or may not
require a broker's license. Some states allow licensed attorneys to become real estate brokers
without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.
In the United States, Realtor (capitalized) is a registered trademark of the National Association of
Realtors (NAR). There are 1.3 million Realtors, mostly in the United States, and an additional 1
million licensed real estate agents who are not members of NAR and cannot use the trademarked title
of "realtor". However, the U.S. Bureau of Labor Statistics claims only about 600,000 working
brokers/salespersons.
Agency relationships with clients versus non-agency relationships with customers
Relationship: Conventionally, the broker provides a conventional full-service, commissionbased brokerage relationship under a signed listing agreement with a seller or a "buyer
representation" agreement with a buyer, thus creating under common law in most states an
agency relationship with fiduciary obligations. The seller or buyer is then a client of the broker.
Some states also have statutes that define and control the nature of the representation.
Agency relationships in residential real estate transactions involve the legal representation by a real
estate broker (on behalf of a real estate company) of the principal, whether that person(s) is a buyer
or a seller. The broker and his licensed real estate agents then become the agent of the principal.
Non-agency relationship: where no written agreement or fiduciary relationship exists, a real

estate broker and his agents work with a principal who is known as the broker's customer. When a
buyer who has not entered into a Buyer Agency agreement with the broker buys a property, that
broker functions as the sub-agent of the seller's broker. When a seller chooses to work with a
transaction broker, there is no agency relationship created.
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Transaction brokers
Some state Real Estate Commissions - notably Florida's after 1992 (and extended in 2003) and
Colorado's after 1994 (with changes in 2003) - created the option of having no agency or fiduciary
relationship between brokers and sellers or buyers. Having no more than a facilitator relationship,
transaction brokers assist buyers, sellers, or both during the transaction without representing the
interests of either party who may then be regarded as customers.
As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative
committees:
"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller
together and assists with the closing of details. The Transaction Broker is not a fiduciary of any
party, but must abide by law as well as professional and ethical standards." (such
as NAR Code of Ethics).
The result was that in 2003, Florida created a system where the default brokerage relationship
had "all licensees operating as transaction brokers, unless a single agent or no brokerage
relationship is established, in writing, with the customer" and the statute required written
disclosure of the transaction brokerage relationship to the buyer or seller customer only through
July 1, 2008.
In the case of both Florida and Colorado, dual agency and sub-agency (where both listing and
selling agents represent the seller) no longer exist.
Dual or limited agency

Dual agency occurs when the same brokerage represents both the seller and the buyer under
written agreements. Individual state laws vary and interpret dual agency rather differently.
Many states no longer allow dual agency. Instead, "transaction brokerage" provides the buyer and
seller with a limited form of representation but without any fiduciary obligations(see Florida law).
Buyers and sellers are generally advised to consult a licensed real estate professional for a
written definition of an individual state's laws of agency, and many states require written
Disclosures to be signed by all parties outlining the duties and obligations.
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If state law allows for the same agent to represent both the buyer and the seller in a single
transaction, the brokerage/agent is typically considered to be a Dual Agent. Special laws/rules
often apply to dual agents, especially in negotiating price.
In some states, Dual Agency can be practiced in situations where the same brokerage (but not
agent) represent both the buyer and the seller. If one agent from the brokerage has a home
listed and another agent from that brokerage has a buyer-brokerage agreement with a buyer
who wishes to buy the listed property, Dual Agency occurs by allowing each agent to be
designated as an "intra-company" agent. Only the broker himself is the Dual Agent.
Some states do allow a broker and one agent to represent both sides of the transaction as
dual agents. In those situations, conflict of interest is more likely to occur, typically resulting in
the loss of advocacy for both parties.
Types of services that a broker can provide
Since each province's and state's laws may differ, it is generally advised that prospective sellers
or buyers consult a licensed real estate professional.
Some examples:
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Comparative Market Analysis (CMA) an estimate of the home's value compared with others.
This differs from an appraisal in that property currently for sale may be taken into
consideration. (competition for the subject property)
Total Market Overview an objective method for determining a home's value, where a CMA is
subjective.
Exposure Marketing the real property to prospective buyers.
Facilitating a Purchase guiding a buyer through the process.
Facilitating a Sale guiding a seller through the selling process.
FSBO document preparation preparing necessary paperwork for "For Sale By Owner"
sellers.
Real estate appraisal in most states, only if the broker is also licensed as an appraiser.
Home Selling Kits guides advising how to market and sell a property.
Hourly Consulting for a fee, based on the client's needs.
Leasing for a fee or percentage of the gross lease value.
Property Management
Exchanging property.
Auctioning property.
Preparing contracts and leases. (not in all states)
These services are also changing as a variety of real estate trends transform the industry.
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Real estate appraisal

Real estate appraisal, property valuation or land valuation is the process of valuing real
property (usually market value). Real estate transactions require appraisals because they occur
infrequently and every property is unique (especially their location, a key factor in valuation), unlike
corporate stocks, which are traded daily and are identical (thus a centralized Walrasian auction like
a stock exchange is unrealistic). Appraiser reports form the basis for mortgage loans,
settling estates and divorces, taxation, and so on. Sometimes the report is used by both parties to set
the sale price of a property.
Most, but not all, countries require appraisers to be licensed or certified. Appraisers are often known
as "property valuers" or "land valuers"; in British English they are "valuation surveyors". If the
appraiser's opinion is based on market value, then it must also be based on the highest and best
use of the real property. For mortgage valuations of improved U.S. residential properties, appraisals
are generally reported on a standardized form like the Uniform Residential Appraisal
Report Appraisals of more complex properties (e.g., income-producing, raw land) usually include a
narrative appraisal report.
Types of value
There are several types and definitions of value sought by a real estate appraisal. Some of the most
common are:
Market value The price at which an asset would trade in a competitive Walrasian
auction setting. Market value is usually interchangeable with open market value or fair
value. International Valuation Standards (IVS) define:
Market value the estimated amount for which an asset or liability should exchange on
the valuation date between a willing buyer and a willing seller in an arm's length transaction,
after proper marketing and where the parties had each acted knowledgeably, prudently and
without compulsion.
Value-in-use, or use value The net present value (NPV) of a cash flow that an asset
generates for a specific owner under a specific use. Value-in-use is the value to one particular
user, and may be above or below the market value of a property.
Investment value is the value to one particular investor, and may or may not be higher than
the market value of a property. Differences between the investment value of an asset and
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its market value provide the motivation for buyers or sellers to enter the
marketplace. International Valuation Standards (IVS) define:
Investment value the value of an asset to the owner or a prospective owner for individual
investment or operational objectives.
Insurable value is the value of real property covered by an insurance policy. Generally it
does not include the site value.
Liquidation value may be analyzed as either a forced liquidation or an orderly

liquidation and is a commonly sought standard of value in bankruptcy proceedings. It
assumes a seller who is compelled to sell after an exposure period which is less than the
market-normal time-frame.
Price versus value

There can be differences between what the property is really worth (market value) and what it
cost to buy it (price). A price paid might not represent that property's market value. Sometimes,
special considerations may have been present, such as a special relationship between the
buyer and the seller where one party had control or significant influence over the other party.
In other cases, the transaction may have been just one of several properties sold or traded
between two parties. In such cases, the price paid for any particular piece is not its market
"value" (with the idea usually being, though, that all the pieces and prices add up to market
value of all the parts) but rather its market "price".
At other times, a buyer may willingly pay a premium price, above the generally accepted
market value, if his subjective valuation of the property (its investment value for him) was
higher than the market value. One specific example of this is an owner of a neighboring
property who, by combining his own property with the subject property, could obtain
economies-of-scale. Similar situations sometimes happen in corporate finance. For example,
this can occur when a merger or acquisition happens at a price which is higher than the value
represented by the price of the underlying stock. The usual explanation for these types
of mergers and acquisitions is that "the sum is greater than its parts", since full ownership of a
company provides full control of it. This is something that purchasers will sometimes pay a
high price for. This situation can happen in real estate purchases too.
But the most common reason for value differing from price is that either the buyer or the seller
is uninformed as to what a property's market value is but nevertheless agrees on a contract at
a certain price which is either too expensive or too cheap. This is unfortunate for one of the
two parties. It is the obligation of a real property appraiser to estimate the true market value of
a property and not its market price.
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Market value definitions in the United States

In the United States, appraisals are for a certain type of value (e.g., foreclosure value, fair
market value, distressed sale value, investment value). The most commonly used definition of
value is Market Value. While Uniform Standards of Professional Appraisal Practice (USPAP)
does not define Market Value, it provides general guidance for how Market Value should be
defined:
a type of value, stated as an opinion, that presumes the transfer or sale of a property as of a
certain date, under specific conditions set forth in the definition of the term identified by the
appraiser as applicable in an appraisal.
Thus, the definition of value used in an appraisal or Current Market Analysis (CMA) analysis
and report is a set of assumptions about the market in which the subject property may
transact. It affects the choice of comparable data for use in the analysis. It can also affect the
method used to value the property. For example, tree value can contribute up to 27% of
property value.
Three approaches to value
There are three traditional groups of methodologies for determining value. These are usually
referred to as the "three approaches to value which are generally independent of each other:
The cost approach (the buyer will not pay more for a property than it would cost to build an
equivalent).
The sales comparison approach (comparing a property's characteristics with those of

comparable properties that have recently sold in similar transactions).
The income approach (similar to the methods used for financial valuation, securities
analysis or bond pricing).
However, the recent trend of the business tends to be toward the use of a scientific
methodology of appraisal which relies on the foundation of quantitative-data risk, and
geographical based approaches. Pagourtzi et al. have provided a review on the methods used
in the industry by comparison between conventional approaches and advanced ones.
As mentioned before, an appraiser can generally choose from three approaches to determine
value. One or two of these approaches will usually be most applicable, with the other
approach or approaches usually being less useful. The appraiser has to think about the
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"scope of work", the type of value, the property itself, and the quality and quantity of data
available for each approach. No overarching statement can be made that one approach or
another is always better than one of the other approaches.
The appraiser has to think about the way that most buyers usually buy a given type of
property. What appraisal method do most buyers use for the type of property being valued?
This generally guides the appraiser's thinking on the best valuation method, in conjunction
with the available data. For instance, appraisals of properties that are typically purchased by
investors (e.g., skyscrapers, office buildings) may give greater weight to the Income Approach.
Buyers interested in purchasing single family residential property would rather compare price,
in this case the Sales Comparison Approach (market analysis approach) would be more
applicable. The third and final approach to value is the Cost Approach to value. The Cost
Approach to value is most useful in determining insurable value, and cost to construct a new
structure or building.
For example, single apartment buildings of a given quality tend to sell at a particular price per
apartment. In many of those cases, the sales comparison approach may be more applicable.
On the other hand, a multiple-building apartment complex would usually be valued by the
income approach, as that would follow how most buyers would value it. As another example,
single-family houses are most commonly valued with greatest weighting to the sales
comparison approach. However, if a single-family dwelling is in a neighborhood where all or
most of the dwellings are rental units, then some variant of the income approach may be more
useful. So the choice of valuation method can change depending upon the circumstances,
even if the property being valued does not change much.
The cost approach

The cost approach was once called the summation approach. The theory is that the value of
a property can be estimated by summing the land value and the depreciated value of any
improvements. The value of the improvements is often referred to by the abbreviation RCNLD
(for "reproduction/replacement cost new less depreciation"). Reproduction refers to
reproducing an exact replica; replacement cost refers to the cost of building a house or other
improvement which has the same utility, but using modern design, workmanship and
materials. In practice, appraisers almost always use replacement cost and then deduct a
factor for any functional dis-utility associated with the age of the subject property. An exception
to the general rule of using the replacement cost, is for some insurance value appraisals. In
those cases, reproduction of the exact asset after a destructive event like a fire is the goal.
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In most instances when the cost approach is involved, the overall methodology is a hybrid of
the cost and sales comparison approaches (representing both the suppliers' costs and the
prices that customers are seeking). For example, the replacement cost to construct a building
can be determined by adding the labor, material, and other costs. On the other hand, land
values and depreciation must be derived from an analysis of comparable sales data.
The cost approach is considered most reliable when used on newer structures, but the
method tends to become less reliable for older properties. The cost approach is often the only
reliable approach when dealing with special use properties (e.g., public assembly, marinas).
The sales comparison approach

The sales comparison approach is based primarily on the principle of substitution. This
approach assumes a prudent (or rational) individual will pay no more for a property than it
would cost to purchase a comparable substitute property. The approach recognizes that a
typical buyer will compare asking prices and seek to purchase the property that meets his or
her wants and needs for the lowest cost. In developing the sales comparison approach, the
appraiser attempts to interpret and measure the actions of parties involved in the marketplace,
including buyers, sellers, and investors.
Data collection methods and valuation process Data is collected on recent sales of
properties similar to the subject being valued, called "comparables". Only SOLD properties
may be used in an appraisal and determination of a property's value, as they represent
amounts actually paid or agreed upon for properties. Sources of comparable data include real
estate publications, public records, buyers, sellers, real estate brokers and/or agents,
appraisers, and so on. Important details of each comparable sale are described in the
appraisal report. Since comparable sales are not identical to the subject property, adjustments
may be made for date of sale, location, style, amenities, square footage, site size, etc. The
main idea is to simulate the price that would have been paid if each comparable sale were
identical to the subject property. If the comparable is superior to the subject in a factor or
aspect, then a downward adjustment is needed for that factor. Likewise, if the comparable is
inferior to the subject in an aspect, then an upward adjustment for that aspect is needed. The
adjustment is somewhat subjective and relies on the appraiser's training and experience.
From the analysis of the group of adjusted sales prices of the comparable sales, the appraiser
selects an indicator of value that is representative of the subject property. It is possible for
various appraisers to choose different indicator of value which ultimately will provide different
property value.
Steps in the sales comparison approach
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Research the market to obtain information pertaining to sales, and pending sales that are
similar to the subject property
2. Investigate the market data to determine whether they are factually correct and accurate
Determine relevant units of comparison (e.g., sales price per square foot), and develop a
comparative analysis for each
Compare the subject and comparable sales according to the elements of comparison and
adjust as appropriate
Reconcile the multiple value indications that result from the adjustment (upward or
downward) of the comparable sales into a single value indication
The income capitalization approach
The income capitalization approach (often referred to simply as the "income approach") is
used to value commercial and investment properties. Because it is intended to directly reflect
or model the expectations and behaviors of typical market participants, this approach is
generally considered the most applicable valuation technique for income-producing properties,
where sufficient market data exists.
In a commercial income-producing property this approach capitalizes an income stream into a
value indication. This can be done using revenue multipliers or capitalization rates applied to a
Net Operating Income (NOI). Usually, an NOI has been stabilized so as not to place too much
weight on a very recent event. An example of this is an unleased building which, technically,
has no NOI. A stabilized NOI would assume that the building is leased at a normal rate, and to
usual occupancy levels. The Net Operating Income (NOI) is gross potential income (GPI), less
vacancy and collection loss (= Effective Gross Income) less operating expenses (but
excluding debt service, income taxes, and/or depreciation charges applied by accountants).
Alternatively, multiple years of net operating income can be valued by a discounted cash
flow analysis (DCF) model. The DCF model is widely used to value larger and more expensive
income-producing properties, such as large office towers or major shopping centres. This
technique applies market-supported yields (or discount rates) to projected future cash flows
(such as annual income figures and typically a lump reversion from the eventual sale of the
property) to arrive at a present value indication.
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UK valuation methods
In the United Kingdom, valuation methodology has traditionally been classified into five
methods:
1. Comparative method. Used for most types of property where there is good evidence of
previous sales. This is analogous to the sales comparison approach outlined above.
2. Investment method. Used for most commercial (and residential) property that is producing
future cash flows through the letting of the property. If the current estimated rental value (ERV)
and the passing income are known, as well as the market-determined equivalent yield, then
the property value can be determined by means of a simple model. Note that this method is
really a comparison method, since the main variables are determined in the market. In
standard U.S. practice, however, the closely related capitalizing of NOI is confounded with the
DCF method under the general classification of the income capitalization approach (see
above).
3. Residual method. Used for properties ripe for development or redevelopment or for bare
land only
4. Profit method. Used for trading properties where evidence of rates is slight, such as hotels,
restaurants and old-age homes. A three-year average of operating income (derived from the
profit and loss or income statement) is capitalized using an appropriate yield. Note that since
the variables used are inherent to the property and are not market-derived, therefore unless
appropriate adjustments are made, the resulting value will be value-in-use or investment
value, not market value.
5. Cost method. Used for land and buildings of special character for which profit figures
cannot be obtained or land and buildings for which there is no market because of their public
service or heritage characteristics. Both the residual method and the cost method would be
grouped in the United States under the cost approach (see above).
Further considerations
Scope of work
While the Uniform Standards of Professional Appraisal Practice (USPAP) has always required
appraisers to identify the scope of work needed to produce credible results, it became clear in
recent years that appraisers did not fully understand the process for developing this
adequately. In formulating the scope of work for a credible appraisal, the concept of
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a limited versus complete appraisal and the use of the Departure Rule caused confusion to
clients, appraisers, and appraisal reviewers. In order to deal with this, USPAP was updated in
2006 with what came to be known as the Scope of Work Project. Following this, USPAP
eliminated both the Departure Rule and the concept of a limited appraisal, and a new Scope of
Work rule was created. In this, appraisers were to identify six key parts of the appraisal
problem at the beginning of each assignment:
Client and other intended users
Intended use of the appraisal and appraisal report
Definition of value (e.g., market, foreclosure, investment)
Any hypothetical conditions or extraordinary assumptions
Effective date of the appraisal analysis
Salient features of the subject property
Based on these factors, the appraiser must identify the scope of work needed, including the
methodologies to be used, the extent of investigation, and the applicable approaches to value.
Currently, minimum standards for scope of work are:
Expectations of the client and other users
The actions of the appraiser's peers who carry out similar assignments
The scope of work is the first step in any appraisal process. Without a strictly defined scope of
work, an appraisal's conclusions may not be viable. By defining the scope of work, an
appraiser can properly develop a value for a given property for the intended user, and for the
intended use of the appraisal. The whole idea of "scope of work" is to provide clear
expectations and guidelines for all parties as to what the appraisal report does, and does not,
cover; and how much work has gone into it.
Types of ownership interest

The type of real estate "interest" that is being valued, must also be known and stated in the report. Usually,
for most sales, or mortgage financings, the fee simple interest is being valued. The fee simple
interest is the most complete bundle of rights available. However, in many situations, and in
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many societies which do not follow English Common Law or the Napoleonic Code, some other
interest may be more common. While there are many different possible interests in real estate,
the three most common are:
Fee simple value (known in the UK as freehold) The most complete ownership in real
estate, subject in common law countries to the powers reserved to the state (taxation,
escheat, eminent domain, and police power)
Leased fee value This is simply the fee simple interest encumbered by a lease. If the
lease is at market rent, then the leased fee value and the fee simple value are equal.
However, if the tenant pays more or less than market, the residual owned by the leased
fee holder, plus the market value of the tenancy, may be more or less than the fee simple
value.
Leasehold value The interest held by a tenant. If the tenant pays market rent, then the
leasehold has no market value. However, if the tenant pays less than market, the
difference between the present value of what is paid and the present value of market rents
would be a positive leasehold value. For example, a major chain retailer may be able to
negotiate a below-market lease to serve as the anchor tenant for a shopping center. This
leasehold value may be transferable to another anchor tenant, and if so the retail tenant
has a positive interest in the real estate.
Home inspection
If a home inspection is performed prior to the appraisal and that report is provided to the
appraiser, a more useful appraisal can result. This is because the appraiser, who is not expert
home inspector, will be told if there are substantial construction defects or major repairs
required. This information can cause the appraiser to arrive at a different, probably lower,
opinion of value. This information may be particularly helpful if one or both of the parties
requesting the appraisal may end up in possession of the property. This is sometimes the case
with property in a divorce settlement or a legal judgment.
Real estate appraisal data entry

Appraisers provide all the data needed to input in appraisal reports. A data entry team does
the rest; it searches, consolidates and types the data into reports, such as subject data and
comparable grid prior sales history. Most data entry organisations work 24 hours a day, 7 days
a week, 365 days a year. The appraiser sends empty reports, and the data entry team works
all day and night, even while the appraiser is sleeping. This process increases the appraiser's
efficiency, and frees up his/her time.
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Mass appraisal and automated valuation models
Automated valuation models (AVMs) are growing in acceptance. These rely on statistical
models such as multiple regression analysis or geographic information systems (GIS) While
AVMs can be quite accurate, particularly when used in a very homogeneous area, there is
also evidence that AVMs are not accurate in other instances such as when they are used in
rural areas, or when the appraised property does not conform well to the neighborhood. AVMs
have also gained favor in class action litigation, and have been substantiated in numerous
cases, both in federal and state courts, as the appropriate method for dealing with large-scale
real estate litigation, such as contaminated neighborhoods
Real estate trends

A real estate trend is any consistent pattern or change in the general direction of the real
estate industry which, over the course of time, causes a statistically noticeable change. This
phenomenon can be a result of the economy, a change in mortgage rates, consumer speculations, or
other fundamental and non-fundamental reasons.
Property values declining instead of rising
MSN reports that home prices have dropped by a record amount and illustrates with a chart of
historical real estate prices. Real estate property values have trended upward in the range of 2-5%
almost every year since World War II, but since 2006 they have declined. From 2007 to 2008 prices
declined as much as 39% per year -though the average decline appears to be lower.
Buyer agency growth
At one time, all real estate brokers and agents, or Realtors, practiced "single agency," meaning they
represented only the buyer or the seller. In the 1990s, the concept of buyer agency became popular,
allowing a buyer to retain an agent who would represent the best interests of the buyer alone. The
first national company to provide this service was The Buyer's Agent, Inc. A 2008 study by Consumer
Reports indicates that prior to this development, a Realtor was presumed by state law to be working
for the seller. The same study shows that buyers using buyer agents obtained a savings of $5000 in
the price of the home as compared to prices paid by unrepresented buyers. It remains true that an
unrepresented real estate buyer can still call the sellers agent to arrange a showing of the property. In
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such cases, the buyer should be advised by Agency Disclosure Laws (a state law in every state in the
U.S.) that any information obtained, as well as all conversations and negotiations undertaken, will be
for the benefit of the seller.
Lower commission rates
Historical rates are presented in a report by the Government Accountability Office, Congress's
investigative arm. A 2005 study of real estate commission rates, reported that realtors tended to
charge, "about 5 percent to 7 percent of a property's selling price...". More recently, CBS News, "60
Minutes" television news magazine reported in 2007 that competitive pressure resulting from a record
number of licensed agents has driven down the average sales commission rates paid by sellers. A
new breed of marketplaces that enable agents to compete for sellers further adds pressure to the
commission rate structure.
Marketing trends
The Internet has became major lead generation method real estate marketing, eclipsing local
newspapers and all other sources as the consumers most preferred method to learn about homes for
sale. "An overwhelming majority (87%) of recent home buyers in the US say they used the internet as
an information resource during their home-buying process, and nearly one-third say they first learned
about their newly purchased home from an online channel, according to a study by the National
Association of Realtors (NAR). Majority of real estate companies use popular internet marketing
methods like SEO, advertising and social media.
Websites like Craigslist (United States), Daft.ie (Republic of Ireland) and Gumtree (UK) became in
21st century main sources for both buyers and sellers. Rapid changes in market environment forced
some countries to introduce new laws regulating real property market in the web.
Even with introduction of internet, traditional media and methods of generating leads were still an
important part of Real Estate trade:
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Though the internet was the most popular source, buyers also cited information from real-estate
agents (85%), yard signs (62%), open houses (48%) and print or newspaper ads (47%). Fewer
buyers relied on home books or magazines, home builders, television, billboards and relocation
companies.
US government involvement
The United States Department of Justice Antitrust Division announced the launch of a new website in
October 2007 to "educate consumers and policymakers about the potential benefits that competition
can bring to consumers of real estate brokerage services and the barriers that inhibit that
competition." Among other findings, they report that certain new sales models can reduce consumer
home sales costs "by thousands of dollars. For example, in states that allow open competition, some
buyer's brokers rebate up to two-thirds of their commission to the customer, and some seller's brokers
offer limited-service packages that let sellers list their homes on the local Multiple Listing
Service(MLS) for as little as a few hundred dollars."
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Real estate economics

Real estate economics is the application of economic techniques to real estate markets. It tries to
describe, explain, and predict patterns of prices, supply, and demand. The closely related field
of housing economics is narrower in scope, concentrating on residential real estate markets, while
the research of real estate trends focuses on the business and structural changes affecting the
industry. Both draw on partial equilibrium analysis (supply and demand), urban economics, spatial
economics, extensive research, surveys, and finance.
Overview of real estate markets
The main participants in real estate markets are:
Owner/user: These people are both owners and tenants. They purchase houses
or commercial property as an investment and also to live in or utilize as a business.
Owner: These people are pure investors. They do not consume the real estate that they
purchase. Typically they rent out or lease the property to someone else.
Renter: These people are pure consumers.

Developers: These people prepare raw land for building, which results in new products for the
market.
Renovators: These people supply refurbished buildings to the market.
Facilitators: This group includes banks, real estate brokers, lawyers, and others that facilitate
the purchase and sale of real estate.
The owner/user, owner, and renter form the demand side of the market, while the developers and
renovators form the supply side. In order to apply simple supply and demand analysis to real estate
markets, a number of modifications need to be made to standard microeconomic assumptions and
procedures. In particular, the unique characteristics of the real estate market must be accommodated.
These characteristics include:
Durability. Real estate is durable. A building can last for decades or even centuries, and the
land underneath it is practically indestructible. Because of this, real estate markets are modeled
as a stock/flow market. About 98% of supply consists of the stock of existing houses, while about
2% consists of the flow of new development. The stock of real estate supply in any period is
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determined by the existing stock in the previous period, the rate of deterioration of the existing
stock, the rate of renovation of the existing stock, and the flow of new development in the current
period. The effect of real estate market adjustments tend to be mitigated by the relatively large
stock of existing buildings.
Heterogeneity. Every unit of real estate is unique in terms of its location, the building, and its
financing. This makes pricing difficult, increases search costs, creates information asymmetry,
and greatly restricts substitutability. To get around this problem, economists, beginning with Muth
(1960), define supply in terms of service units; that is, any physical unit can be deconstructed into
the services that it provides. Olsen (1969) describes these units of housing services as
an unobservable theoretical construct. Housing stock depreciates, making it qualitatively different
from new buildings. The market-equilibrating process operates across multiple quality levels.
Further, the real estate market is typically divided into residential, commercial, and industrial
segments. It can also be further divided into subcategories like recreational, income-generating,
historical or protected, and the like.
High transaction costs. Buying and/or moving into a home costs much more than most types
of transactions. The costs include search costs, real estate fees, moving costs, legal fees, land
transfer taxes, and deed registration fees. Transaction costs for the seller typically range between
1.5% and 6% of the purchase price. In some countries in continental Europe, transaction costs for
both buyer and seller can range between 15% and 20%.
Long time delays. The market adjustment process is subject to time delays due to the length
of time it takes to finance, design, and construct new supply and also due to the relatively slow
rate of change of demand. Because of these lags, there is great potential for disequilibrium in the
short run. Adjustment mechanisms tend to be slow relative to more fluid markets.
Both an investment good and a consumption good. Real estate can be purchased with the
expectation of attaining a return (an investment good), with the intention of using it (a
consumption good), or both. These functions may be separated (with market participants
concentrating on one or the other function) or combined (in the case of the person that lives in a
house that they own). This dual nature of the good means that it is not uncommon for people
to over-invest in real estatethat is, to invest more money in an asset than it is worth on the open
market.
Immobility. Real estate is locationally immobile (save for mobile homes, but the land
underneath them is still immobile). Consumers come to the good rather than the good going to the
consumer. Because of this, there can be no physical marketplace. This spatial fixity means that
market adjustment must occur by people moving to dwelling units, rather than the movement of
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the goods. For example, if tastes change and more people demand suburban houses, people
must find housing in the suburbs, because it is impossible to bring their existing house and lot to
the suburb (even a mobile home owner, who could move the house, must still find a new lot).
Spatial fixity combined with the close proximity of housing units in urban areas suggest the
potential for externalities inherent in a given location.
Demand for housing
The main determinants of the demand for housing are demographic. But other factors, like income,
price of housing, cost and availability of credit, consumer preferences, investor preferences, price of
substitutes, and price of complements, all play a role.
The core demographic variables are population size and population growth: the more people in the
economy, the greater the demand for housing. But this is an oversimplification. It is necessary to
consider family size, the age composition of the family, the number of first and second children, net
migration (immigration minus emigration), non-family household formation, the number of doublefamily households, death rates, divorce rates, and marriages. In housing economics, the elemental
unit of analysis is not the individual, as it is in standard partial equilibrium models. Rather, it is
households, which demand housing services: typically one household per house. The size and
demographic composition of households is variable and not entirely exogenous. It is endogenous to
the housing market in the sense that as the price of housing services increase, household size will
tend also to increase.
Income is also an important determinant. Empirical measures of the income elasticity of demand in
North America range from 0.5 to 0.9 (De Leeuw 1971). If permanent income elasticity is measured,
the results are slightly higher (Kain and Quigley 1975) because transitory income varies from year to
year and across individuals, so positive transitory income will tend to cancel out negative transitory
income. Many housing economists use permanent income rather than annual income because of the
high cost of purchasing real estate. For many people, real estate will be the costliest item they will
ever buy.
The price of housing is also an important factor. The price elasticity of the demand for housing
services in North America is estimated as negative 0.7 by Polinsky and Ellwood (1979), and as
negative 0.9 by Maisel, Burnham, and Austin (1971).
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An individual household's housing demand can be modeled with standard utility/choice theory. A utility
function, such as U=U(X1,X2,X3,X4,...Xn), can be constructed, in which the household's utility is a
function of various goods and services (Xs). This will be subject to a budget constraint such as
P1X1+P2X2+...PnXn=Y, where Y is the household's available income and the Ps are the prices for
the various goods and services. The equality indicates that the money spent on all the goods and
services must be equal to the available income. Because this is unrealistic, the model must be
adjusted to allow for borrowing and saving. A measure of wealth, lifetime income, or permanent
income is required. The model must also be adjusted to account for the heterogeneity of real estate.
This can be done by deconstructing the utility function. If housing services (X4) are separated into its
constituent components (Z1,Z2,Z3,Z4,...Zn), the utility function can be rewritten as U=U(X1,X2,X3,
(Z1,Z2,Z3,Z4,...Zn)...Xn). By varying the price of housing services (X4) and solving for points of
optimal utility, the household's demand schedule for housing services can be constructed. Market
demand is calculated by summing all individual household demands.
Adjustment mechanism
The basic adjustment mechanism is a stock/flow model to reflect the fact that about 98% the market is existing stock
and about 2% is the flow of new buildings.
In the diagram to the right, the stock of housing supply is presented in the left panel while the new flow is in the right
panel. There are four steps in the basic adjustment mechanism. First, the initial equilibrium price (Ro) is determined
by the intersection of the supply of existing housing stock (SH) and the demand for housing (D). This rent is then
translated into value (Vo) via discounting cash flows. Value is calculated by dividing current period rents by the
discount rate, that is, as a perpetuity. Then value is compared to construction costs (CC) in order to determine
whether profitable opportunities exist for developers. The intersection of construction costs and the value of housing
services determine the maximum level of new housing starts (HSo). Finally the amount of housing starts in the
current period is added to the available stock of housing in the next period. In the next period, supply curve SH will
shift to the right by amount HSo.
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Adjustment with depreciation
The diagram to the right shows the effects of depreciation. If the supply of existing housing deteriorates due to wear,
then the stock of housing supply depreciates. Because of this, the supply of housing (SHo) will shift to the left
(to SH1) resulting in a new equilibrium demand of R1(since the amount of homes decreased, but demand still
exists). The increase of demand from Roto R1 will shift the value function up (from Vo to V1). As a result, more
houses can be produced profitably and housing starts will increase (from HSo to HS1). Then the supply of housing
will shift back to its initial position (SH1 to SHo).
Increase in demand
The diagram on the right shows the effects of an increase in demand in the short run. If there is an increase in the
demand for housing, such as the shift from Do to D1 there will be either a price or quantity adjustment, or both. For
the price to stay the same, the supply of housing must increase. That is, supply SHo must increase by HS.
Increase in costs
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The diagram on the right shows the effects of an increase in costs in the short-run. If construction costs increase
(say from CCo to CC1), developers will find their business less profitable and will be more selective in their
ventures. In addition some developers may leave the industry. The quantity of housing starts will decrease
(HSo to HS1). This will eventually reduce the level of supply (from SHo to SH1) as the existing stock of housing
depreciates. Prices will tend to rise (from Ro to R1).
Real estate financing

There are different ways of real estate financing: governmental and commercial sources and institutions. A
homebuyer or builder can obtain financial aid from savings and loan associations, commercial banks, savings
banks, mortgage bankers and brokers, life insurance companies, credit unions, federal agencies, individual
investors, and builders.
Savings and loan associations

Main article: Savings and loan association
The most important purpose of these institutions is to make mortgage loans on residential property. These
organizations, which also are known as savings associations, building and loan associations, cooperative
banks (in New England), or homestead associations (in Louisiana), are the primary source of financial assistance to
a large segment of American homeowners. As home-financing institutions, they give primary attention to singlefamily residences and are equipped to make loans in this area.
Some of the most important characteristics of a savings and loan association are
1. It is generally a locally owned and privately managed home-financing institution.
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2. It receives individuals' savings and uses these funds to make long-term amortized loans to home
purchasers.
3. It makes loans for the construction, purchase, repair, or refinancing of houses.
4. It is state or federally chartered.
Commercial banks
Main article: Commercial bank
Due to changes in banking laws and policies, commercial banks are increasingly active in home financing. In
acquiring mortgages on real estate, these institutions follow two main practices
1. Some banks maintain active and well-organized departments whose primary function is to compete actively
for real estate loans. In areas lacking specialized real estate financial institutions, these banks become the
source for residential and farm mortgage loans.
2. Banks acquire mortgages by simply purchasing them from mortgage bankers or dealers.
In addition, dealer service companies, which were originally used to obtain car loans for permanent lenders such as
commercial banks, wanted to broaden their activity beyond their local area. In recent years, however, such
companies have concentrated on acquiring mobile home loans in volume for both commercial banks and savings
and loan associations. Service companies obtain these loans from retail dealers, usually on a non-recourse basis.
Almost all bank or service company agreements contain a credit insurance policy that protects the lender if the
consumer defaults.
Savings banks
These depository financial institutions are federally chartered, primarily accept consumer deposits, and make home
mortgage loans.
Mortgage bankers and brokers

Main article: Mortgage broker
Mortgage bankers are companies or individuals that originate mortgage loans, sell them to other investors, service
the monthly payments, and may act as agents to dispense funds for taxes and insurance.
Mortgage brokers present homebuyers with loans from a variety of loan sources. Their income comes from the
lender making the loan, just like with any other bank. Because they can tap a variety of lenders, they can shop on
behalf of the borrower and achieve the best available terms. Despite legislation that could favor major banks,
mortgage bankers and brokers keep the market competitive so the largest lenders must continue to compete on
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price and service. According to Don Burnette of Brightgreen Homeloans in Port Orange, Florida, "The mortgage
banker and broker conduit is vital to maintain competitive balance in the mortgage industry. cWithout it, the largest
lenders would be able to unduly influence rates and pricing, potentially hurting the consumer. Competition drives
every organization in this industry to constantly improve on their performance, and the consumer is the winner in
this scenario." [1]
Life insurance companies

Life insurance companies are another source of financial assistance. These companies lend on real estate as one
form of investment and adjust their portfolios from time to time to reflect changing economic conditions. Individuals
seeking a loan from an insurance company can deal directly with a local branch office or with a local real estate
broker who acts as loan correspondent for one or more insurance companies.
Credit unions
Main article: Credit union
These cooperative financial institutions are organized by people who share a common bondfor example,
employees of a company, labor union, or religious group. Some credit unions offer home loans in addition to other
financial services.[1]
Federally supported agencies

Under certain conditions and fund limitations, the Veterans Administration (VA) makes direct loans to creditworthy
veterans in housing credit shortage areas designated by the VA's administrator. Such areas are generally rural and
small cities and towns not near the metropolitan or commuting areas of large citiesareas where GI loans from
private institutions are not available.
The federally supported agencies referred to here do not include the so-called second-layer lenders who enter the
scene after the mortgage is arranged between the lending institution and the individual home buyer.
Real estate investment trusts
Real estate investment trusts (REITs), which began when the Real Estate Investment Trust Act became effective on
January 1, 1961, are available. REITs, like savings and loan associations, are committed to real estate lending and
can and do serve the national real estate market, although some specialization has occurred in their activities.
In the United States, REITs generally pay little or no federal income tax but are subject to a number of special
requirements set forth in the Internal Revenue Code, one of which is the requirement to annually distribute at least
90% of their taxable income in the form of dividends to shareholders.
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Other sources
Individual investors constitute a fairly large but somewhat declining source of money for home mortgage loans.
Experienced observers claim that these lenders prefer shorter-term obligations and usually restrict their loans to less
than two-thirds of the value of the residential property. Likewise, building contractors sometimes accept second
mortgages in partial payment of the construction price of a home if the purchaser is unable to raise the total amount
of the down payment above the first mortgage money offered.
In addition, homebuyers or builders can save their money using FSBO in order not to pay extra fees.
Private equity real estate

In investment finance, Private Equity Real Estate is an asset class consisting of equity and debt investments in
property. Investments typically involve an active management strategy ranging from moderate reposition or
releasing of properties to development or extensive redevelopment.
Investments are typically made via private equity real estate fund, a collective investment scheme, which pools
capital from investors. These funds typically have a ten year life span consisting of a 2-3 year investment period
during which properties are acquired and a holding period during which active asset management will be carried out
and the properties will be sold.
Strategies
Private equity real estate funds generally follow core, core-plus, value added, or opportunistic strategies when
making investments.
Core: This is an unleveraged, low-risk/low-potential return strategy with predictable cash flows. The fund will
generally invest in stable, fully leased, multi-tenant properties within strong, diversified metropolitan areas.
Core Plus: This is a moderate-risk/moderate-return strategy. The fund will generally invest in core properties;
however, many of these properties will require some form of enhancement or value-added element.
Value Added: This is a medium-to-high-risk/medium-to-high-return strategy. It involves buying a property, improving
it in some way, and selling it at an opportune time for gain. Properties are considered value added when they exhibit
management or operational problems, require physical improvement, and/or suffer from capital constraints.
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Opportunistic: This is a high-risk/high-return strategy. The properties will require a high degree of enhancement.
This strategy may also involve investments in development, raw land, mortgage notes, and niche property sectors.
Investments are tactical.
Features
Considerations for investing in private equity real estate funds relative to other forms of investment include:
Substantial entry costs, with most funds requiring significant initial investment (usually upwards of
$1,000,000) plus further investment for the first few years of the fund.
Investments in limited partnership interests (which is the dominant legal form of private equity real estate
funds) are referred to as "illiquid" investments which should earn a premium over traditional securities, such as
stocks and bonds. Once invested, it is very difficult to gain access to your money as it is locked-up in long-term
investments which can last for as long as twelve years. Distributions are made only as investments are
converted to cash; limited partners typically have no right to demand that sales be made.
If a private equity real estate firm can't find suitable investment opportunities, it will not draw on an investor's
commitment. Given the risks associated with private equity real estate investments, an investor can lose all of
its investment if the fund performs badly.
For the above-mentioned reasons, private equity fund investment is for those who can afford to have their capital
locked in for long periods of time and who are able to risk losing significant amounts of money. This is balanced by
the potential benefits of annual returns, which are often excess of 20% for successful opportunistic funds. Investors
in private equity real estate funds tend, therefore, to be institutional investors or high-net-worth individuals.
Size of Industry
The popularity of private equity real estate funds has grown since 2000 as an increasing number of investors
commit more capital to the asset class.
Private Equity Real Estate is a global asset class and in 2007, 46% of capital raised was focused on the US, 26%
was focused on Europe and 27% was targeting Asia and the rest of the world.
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Real Estate Global Business Scenario
The most recent news about upcoming real estate market boom attracts the attention of investors
to see it as signs of economic recovery. Developing an equally well integrated business outlook will
help you define business strategies for 2013. Its time to comprehend what the stock market news
reports to deal with the matters linked with the current real estate scenario. There is a possibility
that the interest rates will rise soon and so does the demand for homes.
Check out the worlds most expensive real estate markets and analyze what the target client wants
to offer good quality services and help them get maximum satisfaction. Extensive research and
knowledge about the recent industry trends and developments can help you arrive at key findings
to design your portfolio of investment. Despite the change in the climate and economic
environment, the industry projects excellent business this year. There is no more bubble session of
2007, when the investors still remember the things that changed their perception to look at the
business. Its good time to try your hand in the real estate business, when there are very less
options for your money. Comprehend home valuation data and develop a commercial point of view
to reap good returns from the current market trend. Considering the changed scenario and
commercial real estate investments the investors need to be ready with the business stance. It
seems that the market has regained the confidence lost in 2008 and is now ready to earn good
returns with profitable business aspirations. Surely the climate has changed and improvements in
the scenario attract the attention of the global investors to be ready with their investment
portfolio for the year 2013.
The house hunters will definitely want to make the best with such historical lower rates. Avoid real
estate traps and ensure excellent profits with mathematical calculations. Sometimes, it may
happen that some projects seem tempting but fails to give the expected returns. Be a good
observer and constant opportunity seeker to identify the opportunities that offer good returns with
risk adjusted returns.
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Real Estate Sector The India Story
Current Scenario of the Real Estate Market in India

Commercial real estate sector is in boom in India. In the last fifteen years, post
liberalization of the economy, Indian real estate business has taken an upturn and is
expected to grow from the current USD 14 billion to a USD 102 billion in the next 10
years. This growth can be attributed to favorable demographics, increasing purchasing
power, existence of customer friendly banks & housing finance companies,
professionalism in real estate and favorable reforms initiated by the government to
attract
global investors
Characteristics of the Real Estate Market in India
Greater availability of
information
Emergence of transparency and
liquidity
Entry of international real estate
consultancies
Governing legal framework relaxed
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Competitive pricing
Realization of large commercial
projects
IPOs by developers
Gradual organization of the markets in the Tier I cities
Growing Market Demand

Cause-Effect scenario leading to emergence of organized real estate market in India
The property market in India has traditionally been unorganized and fragmented.
However, the recent past has seen a consolidation of positions in the market as
developers are stretching their capacities to the maximum in order to meet the growing
market demand, which in turn has encouraged large projects with sourced financing. The
IPOs by large real estate developers like Sobha, Raheja and DLF have led to organization
of the market in the Tier I cities, but the Tier II and Tier III cities still demonstrate the
traits of an unorganized market. Whilst the Indian real estate market still lacks
transparency and liquidity compared to more mature real estate markets, the increasing
requirements of multi national occupiers, as well as the influx of international property
consultancies has led to the introduction of greater availability of market information,
both in published and private form pushing the sector to an organized market form
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Categorization
The demand for new office space in India has grown from an estimated 3.9 million
sq. ft
in 1998 to over 16 million sq. ft in 2004-05. 70% of the demand for office space in
India
is driven by over 7,000 Indian IT and ITES firms and 15% by financial service
providers
and the pharmaceutical sector. In 2005 alone, IT/ITES sector absorbed a total of
approx
30 million sq. ft and is estimated to generate a demand of 150 million sq. ft. of
space
across major cities by 2010. This data clearly demonstrates the growth of the real
estate
sector in the country.
With reference to the availability of infrastructure facilities, following cities are

currently
attracting MNCs/corporate/real estate developers:
Tier I cities, Mumbai (Commercial hub), Delhi (Political hub) and Bangalore
(Technological hub):
Preferred option for many new market entrants
Command the highest international profiles and significant proportion of
FDI
Offer qualified labor pool and the best infrastructure facilities
Exhibit development of sub-urban commercial real estate
Yield of 9.5 10%
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Tier II cities, notably Hyderabad, Chennai, Chandigarh, Kochi, Mangalore, Mysore,

Thiruvananthapuram, Goa, Bhubaneshwar, Ahmedabad and Pune
Yield of 10.5-11.5%
Offer competitive business environments, human resources availability,
telecommunications connectivity, quality of urban infrastructure,
Attract high value IT, ITES and biotech corporate houses
Tier III cities, like Cuttack and Jaipur

Low liquidity and still highly unorganized.
Special Economic Zones:

28 operational SEZs in the country, including those converted from Export
Processing Zones (EPZ) to SEZ Development of SEZs in various segments such as
multi-product,
Information Technology, Bio-technology, Gems and Jewellery, Textiles
and technology intensive industries
Attract both developers and corporate houses (refer table for a list of
corporate that have shown interest in development of SEZs)
Corporate Location
Reliance Industries Gurgaon, Mumbai/Navi Mumbai
Adani Group Mundra
TCG Refineries Haldia
Suzlon Coimbatore, Udipi, Vadodara
Hindalco Sambalpur
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Genpact Bhubaneshwar, Jaipur, Bhopal

Vedanta Orissa
Corporate interested in development of SEZs in India and the location of interest
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How real is the hype?

Metropolitan cities in India are fast becoming a hub of industrial parks, high rises, residential
complexes, sprawling malls and huge commercial complexes, which are gradually but steadily
transforming their skyline. If you are commuting on the busy and packed streets of Delhi, Mumbai,
Bangalore, Hyderabad, Kolkata or any other tier I city, you will come across brightly colored cranes,
rubble, construction and hordes of workers scurrying up and down the towering skyscrapers. This
surely urges you to contemplate on the explosion of real estate sector in India.
Is it a mirage?
How real is the influx of investments by speculative and long-term profit makers? Are the
commitments by oversized private equity firms, overseas investors and domestic financial institutions
adding to the hype and frenzy created in the concrete world of real estate?
Astute watchers in the property sector feel that the bubble is not as big as it seems. According to
prominent investors, brokerage firms and property developers, there are certain factors which are
failing to add the right tempering to the real estate markets in India.
It is quite evident that the funds brought in by the foreign investors are only a small percentage
of the promised amounts.
Price resistance from real estate purchasers and the soaring prices of land are cutting deeply
into the investor's margins, making real estate ventures less lucrative than expected.
Bureaucratic lethargy coupled with red tape, opaqueness in regulations and the absence of
insurance title prove to be other concerns for real estate investors.
Investor sentiments
According to reports by Cushman and Wakefield, there has been a 15 per cent drop in the valuation
of private equity deals in the first nine months of 2012. Their observations are based on the following:
Investors are putting their money in residential deals rather than commercial ones.
PE players are showing an increasing preference towards the metros rather than class II cities
in the hope of better liquidity and higher returns.
The investments are being made on the basis of the assumption that real estate prices will not
change in the near future.
Investors are looking towards projects which have all approvals and licences in place and are
expected to have short cycles. The assurance of quick and stable returns is guiding their
purchase and investment decisions.
They are also having a greater say in the prices of projects. This is decreasing the scope for
automatic price correction or defining of prices by the developers.
Current scenario
The current situation is raising fears of an overheated economy and real estate bubble. This has
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inspired the central banks to initiate a lender cutback on the amounts sanctioned for real estate loans.
The act has caused an upward escalation in the rates of interest and lowered the attractiveness of
home financing for consumers. As a result, the cost of home and office rentals along with their
purchase price has ended up touching unprecedented heights.
So where does this scenario leave the investors and property purchasers?
A majority of Indian real estate companies are privately held and do not disclose their financial
health to investors and buyers. The inability to read the right signals in the absence of readily
available information on products such as retail outlets, industrial property, residential
apartments and offices is causing grave concerns in the minds of the investors.
Rumors related to the misfiring of a large deal or reports of distress sales by prominent
property developers is further adding to the confusion in investor sentiments.
The prices of property in the Indian markets are being stoked by the following factors:
Numerous speculative deals taking place in the hope of making faster and better gains
The rising cost of construction with respect to raw material, labor and other costs
An unexpected hike in the excise prices
Increase in service tax rates
The escalation in land prices
The present scenario in the Indian real estate markets is raising concerns with regard to future profit
margins for foreign investors. Contrary to the figures in the past two years, when increasing valuation
in property yielded returns as high as 30-40% on investments, the expected returns in the days to
come are not expected to go higher than 15-20%.
Foreign investors are now looking towards other emerging markets such as those of Latin America
and Eastern Europe.
Future trends
According to analysts, this is a good time for purchasing real estate intended for long-term investment
and end use. The cyclical nature of the markets is expected to push up the residential property rates
in the next three years. If the investment horizon is greater than this period then it makes good
business sense to invest in property in metros and other fast developing cities.
The decision to purchase property in the emerging areas should be backed by a complete analysis of
the demand-supply forecasts and infrastructure plans for the region. As far as capital appreciation
and rental yields are concerned, mid-range houses are expected to provide better returns than luxury
apartments or premium property purchased at discounted prices.
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SWOT Analysis on Kolkata Real Estate Sector
Strengths
Attracting High FDI Inflow

High Demand due to Urbanization
Rising Middle Class Numbers
NRI Buying power 10x than local buyers
Better Infrastructure
citizens buying affordability
Brand name of Kalpataru playing a major role
Customers from Kolkata willing to invest in Mumbai Property
Weaknesses
High Government Regulation
High taxes on Raw Material
Availability of Finance
High Interest Rate
Inability to tap NRI customers
Lack for technology adaptation
Niche customers in Kolkata still unaware of Kalpataru group
Investment in luxury seven star properties in a market of real estate value depreciation is unlikely
Lodha group already entered Kolkata market as per report and took a huge chunk of investment.
Difficult to emulate such feat as market is depreciating
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KALPATARU LIMITED
Opportunities
Affordable Homes segment

Rural India Housing
Lots of open spaces in Kolkata suburb
Relatively low price of raw materials in this part of the country
Huge upper middle class population willing to leave Kolkata for better career and business
opportunities
Depreciation of real estate sector actually makes it a good time to invest as it is bound to resurrect
sooner rather than later
Threats
Competition
Economic Inflation
political instability
economic slowdown
Insecurity
Kolkatans skeptic to invest in some property which is hard to maintain from such a long distance
Huge maintenance cost associated with luxury real estate
Possibility of creating white elephant situation
No assurance can be given to the prospective buyers that the value of those properties will appreciate
given the condition of real estate industry
People willing to invest in gold
Luxury and Semi luxury properties in Kolkata from market leaders are still unsold, in such a condition
it is hard to sell a luxury apartment in Mumbai, affordable section would have been a better choice
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KALPATARU LIMITED
Products offered by Kalpataru Limited
KALPATARU RADIANCE(GOREGAON W)
Overview
Kalpataru Radiance is a premium residential property in Mumbai with signature towers located in
the heart of Goregaon West. With easy access to the Western Express Highway, commercial
hubs, a bouquet of premium facilities and lavish landscapes it is your gateway to live better
now. Your home features a choice of 2, 3 & 4 bedroom residences with luxurious floor height of
10 feet 10 inches and home automation system with mood lighting in all rooms. Stay fit with a
state-of-the-art gymnasium, spa, squash court, tennis/basketball court & large outdoor
swimming pool with kids pool and open air Jacuzzi. Enjoy the great outdoors with themed
landscapes, barbeque area, sculpture garden, meditation pavilion and rooftop garden with a
banquet lounge.
Project Highlights
Contemporary multi-storeyed towers

Designed with emphasis on optimum natural lighting and ventilation
Spacious 2 & 3 BHK flats in Mumbai in tower C; 3 & 4 BHK apartment with servant room
in tower A
Spacious apartments complemented with floor to floor height of 10 feet 10 inches
Sun deck with aluminium and glass railing in living room with full height window
Clubhouse with world class gymnasium
Landscaped podium of around 1.6 acres for recreational facilities
Large swimming pool with ozonised water, kids pool, splash pool and open air Jacuzzi with
pool decks
4 tier advanced and integrated security system
Wi-fi system in every apartment and in common areas
LEED certified project
Location
Site Address:
Kalpataru Radiance, Next to Prabhodhan Krida Bhavan, Off Post Office
Road, Siddharth Nagar, Goregaon (West), Mumbai 400 104
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KALPATARU LIMITED
Kalpataru AURA ( Ghatkopar W)
Overview
An ideal home is all about the coming together of family and friends. And so, we have stopped at
nothing to ensure that the Kalpataru Aura, a premium residential Mumbai property is just that.
With amenities like a half-basketball court, an amphitheatre, a tennis court and more, every day
becomes an occasion to get together. The party lounge opens up right to the lawn and provides
the perfect venue to entertain guests and indulge in some fun and revelry. We have also ensured
that Aura is replete with wide open spaces, even moving the parking to the basement, so that
children can frolic around without worrying about vehicular movement. The wide open spaces
converge into acres of green, complete with meticulously planned landscaped gardens and
childrens play area, so you can soak in the fresh air while spending time with your loved ones.
Auras two luxurious clubhouses offer you best-in-class stress relief with facilities such as a
Jacuzzi, massage rooms, swimming pools, a yoga room and much more.
Project Highlights
Luxurious 2 & 2.5 BHK apartments

Two clubhouses with gymnasium, squash, half-basketball & tennis courts
Mini-theatre, yoga room & multi-function room
Spa, swimming pool & toddlers pool
Landscaped gardens & children's play area
Jain Temple
Located in the heart of central suburb LBS Marg, Ghatkopar and in close proximity to
upcoming Metro Rail
Ready Possession
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KALPATARU LIMITED
Location
Site Address:
Kalpataru Aura, L.B.S. Marg, Ghatkopar (West), Mumbai 400 086.
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KALPATARU LIMITED
Kalpataru Crest ( Bhandup W)

Overview
Feel on top of the world at Kalpataru Crest one of the tallest buildings at Bhandup (W). Watch
the sun rising and setting, feel the unobstructed breeze on your face and experience the starry
nights, all in lavish style as you tower over the neighbourhood. Bask in the lap of luxury at the
spa and open air Jacuzzi at the clubhouse. Crests spacious apartments are furnished with the
finest quality marble, modular kitchens and bath fixtures that make you feel like a king. Choose
your fitness regime from amongst a state-of-the-art gym, squash court, yoga room or swimming
pool or rejuvenate yourself in a sea of green at Crests very own landscaped gardens.
Project Highlights
Exquisitely designed multi-storeyed towers

An eco- friendly design that accentuates the natural lighting and allows for crossventilation
Ample privacy with a wide spacing of approximate 80 metres between the towers
Scenic views of the creek, the mountains and the city
Eco-Friendly building structure
Natural lighting and optimum crossventilation
Grand entrance lobby with premium finishes
Spacious apartments with 106 floor-to- floor height
Clubhouse with state of the art gymnasium
Large swimming pool and toddlers pool with pool deck
4-tier integrated safety and security systems
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KALPATARU LIMITED
Kalpataru Pinnacle ( Goregaon West )
Overview
Towering above the bustling city and set amidst the most sought-after location of Goregaon,
Kalpataru Pinnacle is the epitome of new-age luxury and high-life. With exceptionally spacious
and super-sized 3-4 BHK flats, duplexes and penthouses in a high-rise tower in Mumbai, each
home celebrates exclusivity and grandeur in its own unique way. From an elegant rooftop infinity
swimming pool and toddlers pool to an open air Jacuzzi, at Pinnacle, indulgence engulfs you
everywhere you go. The exclusive Y-shaped tower is constructed in such a way that ample light
and even ventilation flows in lavishly.
Every residence is complemented with 116 floor-to-floor height for comfort and steadfast
scalable automation system to erase even the slightest security worry off your mind. The
majestic 30 high air-conditioned entrance lobby designed in Italian/ imported marble leaves you
spellbound and the exquisite rooftop party lawn makes you fall in love over and over again with
the velvety carpet of soothing greens.
Come; experience for yourself the magnificence of quietude in the restless city life, only at
Kalpataru Pinnacle.
Project Highlights
A luxurious multi-storeyed tower
Spacious duplex apartments, 3 BHK and 4 BHK flats in Mumbai with floor to floor height of
11'6"
Clubhouse with gymnasium and spa

Squash court, party room and mini-theatre
Rooftop infinity swimming pool, kids pool & open air Jacuzzi
Landscaped gardens and children's play area
Wi-Fi enabled project
Excellent connectivity to S.V. Road and Western Express Highway
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KALPATARU LIMITED
Location
Site Address:
Kalpataru Pinnacle, Opposite Inorbit Mall, Goregaon-Mulund Link Road,
Goregaon (West), Mumbai 400 104.
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KALPATARU LIMITED
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KALPATARU LIMITED
Project Overview
In the previous page a map of Kolkata has been given.
All the interns had been assigned certain areas of the City.
Our guide Mr. Bharat Verma divided the city into few parts and assigned us
accordingly.
My assigned area was
Garia
Tiljola
Topsia
Kasba
Mukundapur
Anandapur
Adarsh Pally
Garfa
Santoshpur
It can be viewed in the extreme eastern part of the map.
Positive points about the area assigned to me
1. Ample free spaces, that means plenty of new projects are coming up in that region
so it is a good region for competition survey
2. Good Transportation using eastern metropolitan bypass
3. Tallest residential tower and the tallest commercial tower project is ongoing in this
region
4. Huge number of unorganized and unregistered waiting to be tapped in.
5. Good supply of amenities as many private hospitals, schools are there in this region
6.Metro railway work ongoing which will be a huge boost for the local transportation
system and also the standard of live.
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KALPATARU LIMITED
Negative points about the area assigned to me
1. outskirts region, following the normal trend channel partners has their offices in
central Kolkata or proper city.
2. Surrounded by east Kolkata wetland which is abandoned place, hard to find channel
partners who actually have contacts in Mumbai
3. Local channel partners in this region are mostly unregistered and unorganized,
hardly ever worked with any reputed builders.
4. most of the dealings take place in the proper city, local CPs worked only in the
lower/affordable segment range.
They deal mostly for rents and apartment with a ticket size of sub 50 lakhs. Working
with a reputed builder like kalpataru and customers who can afford to invest in a 7
star apartment is beyond their reach.
5. As the cps are mostly unorganized and unregistered they are mostly unprofessional
as well.
They dont have proper office or documents. Most of them dont even possess visiting
card
6. This region is famous for humongous refugee colony. Quite a handful of immigrant
lives in this region. They are quite skeptic to show in official address proof.
7. Dismal condition of Kolkata real estate sector was a big stumbling block. Many part
time casual cps switched profession, rest not willing to cooperate.
8. Difficult to find cps in this region unlike proper Kolkata as they are not registered
anywhere or cant be found using internet database
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KALPATARU LIMITED
Field Interview Process
Introduction:-
As a member of the survey team, Field Interviewer / Investigator plays an extremely important role in the
overall success of the survey. The interviewer/investigator is the connection to the respondents, who will
provide valuable information and feedback necessary for the Kalpataru Real Estate to make informed decisions
about Kolkata consumers and measures the market potentioal of Kolkata real estate sector. He/she is the one
who develops rapport with respondents, assures them that their participation is vital and make them feel
important, obtains their full cooperation and departs them with some positive impact.
Apart from collecting quality, consistent and accurate data, role of interviewer/investigator is also to:
Understand the overall objective of the study.
Follow correct procedures for randomly selecting a channel partner/broker in an assigned cluster.
Understand and Adhere to key definitions and terminology such as carpet area, loading saleable to
carpet/carpet to saleable, PLC etc.
Remind respondents that participation is voluntary and the information given will be kept confidential,
Obtain consent from the respondents to be interviewed, and keep all responses confidential.
Build rapport and remain neutral/unbiased when asking survey questions to the respondent.
Listen and reply to respondents needs, apprehensions and concerns.
Ask questions with patience and not prompt/hint the respondent to any specific answer.
Ask questions in a conversational manner, avoid interrogative method of questioning.
Record responses fully and legibly and assure that the interview follows the logical sequences specified
after yes, and no responses and make appropriate skips.
Collect and Record data with complete objectivity.
Complete questionnaires fully and accurately and correct omissions or errors before departing from the
household.
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KALPATARU LIMITED
Handover the questionnaire to the Supervisor who checks it immediately for completeness or unclear
responses while still in the field.
Inform Supervisor of any problems experienced in the field that may directly or indirectly affect the
survey process and the overall objective of the study.
Keep communication clear and candid with Field Supervisor.
Maintain Professional Ethics and value respondents right (such as Right of Refusal, Right to accurate
Representation, etc.).
Rely solely on self-declared information; do not ask for documents to verify.
Thus the work of Field Investigator/Field Interviewers directly affects the quality of data and indeed the overall
output of the project. It is extremely important that the interviewer follows the directions of supervisors,
sampling methodology in selection of household and respondents and interviewing process. The following are
the generic tips and good practices associated with field interviewing process.
Examine and Practice the questionnaire thoroughly

Ask questions exactly as worded
Repeat and clarify questions that Respondent may have misunderstood
Write & Record what Respondent Said.
Pay special attention to questionnaire instructions and logical filters
Get completely familiar with the Manual
Be Courteous, Patient, Tolerant, Non-Judgemental and Professional
Learn to recognize the "real" refusal
Write and Record in Legible and Clear Handwriting
Be open to feedback about your performance
Maintain accurate records.
Be positive and persuasive, but not aggressive
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KALPATARU LIMITED
Maintain communication with your supervisor
Assume that you know the Respondents Answers and Answer for them
Probe & Influence Respondent in answering the Question
Paraphrase the Question
Write& Record what You thought Respondent meant
Screen or interview someone you know personally
Share and Discuss confidential information with unauthorized persons not associated with project
Dealing with Reluctance and Refusal:During fieldwork, it is very important that one deals with reluctance and refusal with positive frame of mind
and right spirit so as to keep his/her momentum going and persuade respondent to participate in the survey.
There are some common reluctance and refusal and some suggestions to deal with such situations as provided
below:-
I AM TOO BUSY & NOT

INTERESTED
We realize that you are busy. But this interview

session will benefit both of us.
We can understand why you are not interested
but you may find this survey to be a positive
experience and an opportunity to earn more.
We know your time is valuable and that is why
we want to do the interview when it is most
convenient for you (ask/suggest days/times).
I DONT PARTICIPATE IN
SURVEYS
This survey is very important and is being

carried across the country for the first time and
many people like you are being interviewed.
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KALPATARU LIMITED
The information you share with us would be

treated with utmost confidentiality.
Using this information Kalpataru real estate
will create a database of channel partners
generating unique id for each. This will help the
channel partner to continue business with such
a reputed brand.
WHY SHOULD I TELL YOU ABOUT
MY PERSONAL BUSINESS?
The information provided by you would not be

disclosed to anyone and would be used only for
the purpose for which it is sought
You have right to remain silent on questions
which you would not like to answer
The basic socio-economic personal details
would help build better understaning of Kolkata
market and also the channel partner database.
WHY ME?
You have been selected randomly and no one

can replace you.
We are interested in what you have to say and
your opinions will be included in research
results.
WHO ARE YOU AND WHAT DO YOU

WANT?
We understand that you dont want to give

information to someone you dont
know or trust but We represent Kalpataru Real
Estate, a reputed name in real estate sector and
we are working with the channel partners for a
better market understanding. Channel partners
will get 2% commission after the sale of 5star
and 7 star villas which cost 7 crores to 20
crores.
You can confirm my (interviewers)
authenticity with my supervisor and company I
represent
You can confirm the authenticity of survey
from Kalpataru website. and introductory letter
that I carry.
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KALPATARU LIMITED
Questionnaire to survey competition

1. Date Of Visit
2. City
3. SM Name
4. Management Trainee
5. Project name
6. Developer name
7. Address
8. No of Floor (No. of Basement/No. of Parking floors/Storey)
9. No. of Flats per floor
10. Config (1 BHK, 2BHK, 3BHK etc)
11. Config.wise Area (Sq Ft)(mention config and saleable area)
12. Carpet (mention config and carpet area)
13. Loading Saleable to Carpet
14. Loading Carpet to Saleable
15. Base Rate on Saleable
16. Base Rate on Carpet
17. Flat Cost
18. Floor rise
19. Infra Cost
20. PLC (Premium Levied Cost)
21. Parking Cost
22. Other Charges
23. Total Cost of flat (Excluding Statutory Cost)
24. Statutoty Charges (Tax)
25. Total Landing Cost
26. Current Stage of Construction
27. %age Amount Due
28. Possession (mention date)
29. Sales Office (V.Good/Avg./Poor)
30. Show Flat (V.Good/Avg./Poor)
31. Model (V.Good/Avg./Poor)
32. Audio Visual (V.Good/Avg./Poor)
33. Amenities
34. Config.wise Landing cost for Median Floor (Excluding Taxes)
35. Project to be Visited
36. Mention USP of that project
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KALPATARU LIMITED
Questionnaire to survey channel partners

1. Sr. No.
2. Form no
3. Visiting card
4. Visit Date
5. Mgmt Trainee
6. SM
7. CP visited with Area Manager with Interns
8. Date of Birth
9. Firm Name
10.
Contact Person1
11.
Mobile no 1
12.
Mobile no 2
13.
Email
14.
Contact Person 2
15.
Mobile no 1
16.
Mobile no 2
17.
Email
18.
CP Type (Retail, ICP or IPC)
19.
Association member (if yes, mention name)
20.
Address
21.
Location
22.
Directions/Zone
23.
Pin Code
24.
City
25.
Office Type (Large, Small, multiple)
26.
Office Presence (Local or even outside local territory)
27.
Rate in area of operation (mention Area)
28.
Operating Ticket Price
29.
Max Ticket Size
30.
Office Ambience
31.
Team Strength
32.
Area/Location of work
33.
Industry Experience in years
34.
Primary Business
35.
3 Developers worked with in the past (mention the top 3 developers)
36.
Mumbai Investors (Mention the developer)
37.
Pune Investors (Mention the developer)
38.
NRIs (mention the country)
39.
Other city investors (mention name of city)
40.
Micro markets of City known well (mention the name of developers)
41.
Remarks - reasons for rating top 3 developers (construtive feedback
expect.Pls be decriptive)
42.
Aware of KPL (mention the name of site)
43.
Visited kalpataru projects (mention the name of site)
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KALPATARU LIMITED
44.
Mkts - City Projects (name the micro markets)
45.
Mkts other city projects (mention the name of the city worked)
46.
Clientle Category
47.
Primary Sale
48.
Secondary Sale
49.
Rentals
50.
Residential
51.
Commercial
52.
Land acquisition
53.
Redevelopment
54.
Data base
55.
Relationship
56.
Emailers
57.
Online
58.
Portals
59.
Newspaper ads
60.
Remarks - List down all other sources he uses. (Pls be descriptive.need
constructive inputs)
61.
Interested in Prelaunch/ Launch
62.
Suggestions/Feedback - mention other points that he would have said that
will help source and close better (elaborated & descriptive feedback)
63.
Micro mkt int (mention the micro market)
64.
Project Interest (Mention the area)
65.
Interest level in future projects
66.
Atittude
67.
Willingness
68.
Potential
69.
Categorisation
70.
Shortlisted for 2nd Meet
71.
Site visit to be done (mention the site)
72.
Profile form Received
73.
Pan Card / Adress Proof
74.
Complete /Incomplete
75.
Interested for Sparkle (Bandra) - Ticket size 7.5 CR +
76.
Interested for Avana (Parel) Ticket Size 11 cr+
77.
Interested for Solitaire (Juhu) Ticket Size 13.5 Cr +
78.
Interested for Amoda (Lonavla) Ticket Size 6 Cr+
79.
PAN Card No
80.
2nd Level Meeting
81.
2nd Level Meeting date
82.
2nd Level Remark
83.
Ticket Size
84.
Interested in Lonavla, Thana, South Mumbai, Goregaon, Entire Mumbai
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KALPATARU LIMITED
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KALPATARU LIMITED
Channel Partner classification on the basis of ticket size

50
45
40
35
30
25
20
15
10
5
0
Sales
Channel partners or in laymans term brokers are listed in in this bar

diagram according to the ticket size they have worked before.
This data is based on the cps I have met in the region I have been assigned.
Channel Partners
Below 50 Lkhs
50-80 Lkhs
95 lakhs to 1.5 crore
2 crore to 3 crore
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KALPATARU LIMITED
87
KALPATARU LIMITED
90
80
70
60
<1
50
1 to 2 years
40
2 to 4 years
30
More than 5 years
20
10
0
Industry Experience of the channel partners
Industry Experience of the channel partners
below 1 year
1 to 2 years
2 to 4 years
more than 5 years
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KALPATARU LIMITED
45
40
35
30
25
20
B
D
15
10
5
0
Categorisation of the channel partners on the basis of prospect
Categorisation of channel partner on the basis of prospect
A
B
C
D
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KALPATARU LIMITED
90
80
70
60
50
High
Medium
40
Low
30
20
10
0
CP categorisation on the basis of potential
CP categorisation on the basis of potential
High
Medium
Low
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KALPATARU LIMITED
70
60
50
40
High
Medium
30
Low
20
10
0
categorisation on the basis of CP attitude
Categorisation on the basis of CP Attitude
High
Medium
Low
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KALPATARU LIMITED
90
80
70
60
50
High
Medium
40
Low
30
20
10
0
Channel partner interested in future projects
Channel partners interested in future project
High
Medium
Low
No
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KALPATARU LIMITED
RESEARCH OBJECTIVES
OBJECTIVE AND SCOPE OF THE STUDY

To study competitors working in Kolkata Real Estate sector.
To understand the investing habits of the consumer.
To create channel partner network in kolkata.
SCOPE OF THE STUDY
The survey has been undertaken in the city of Kolkata and the result indicate the channel
partners perception about Kalpataru Limited and their attitude towards working with
Kalpataru. Further this study helped to understand whether the channel partner has prospective
customers in Mumbai.
RESEARCH METHODOLOGY
TYPES OF RESEACH
Descriptive research is the explanation of the certain existing phenomena. This is a descriptive
research as we are trying to describe the Channel Partner perception about the company and
willingness to work with kalpataru.
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KALPATARU LIMITED
RESEARCH METHOD
The study uses the channel partner meet as a tool to collect data and then hypothesis testing to
draw inference in order to analyze the perception of Channel partners.
DATA COLLECTION METHOD
Primary Data: A questionnaire with relevant questions was prepared by Kalpataru and the
response of 87 channel partners belonging to the target area assigned by our guide has been
acquired through meeting.
Secondary Data: A brief research on the internet was done to develop database of channel
partners
in
the
prospective
area.
The
sites
related
to
real
estate
such
as
asklaila.com,99acres.com,commonfloor.com etc helped to gather information about both

competitor and channel partners.
INSTRUMENT USED
The survey was conducted through a carefully prepared questionnaire that contains questions
regarding the channel partners preferences and feedback about Kalpataru and prospective
customers of Mumbai based 7 star projects in kolkata. The questionnaire was filled by personal
meeting with channel partners, who helped us create a better understanding about Kolkata
market.
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KALPATARU LIMITED
SAMPLING PLAN
Target population Elements
1. Competitors who have already entered Kolkata real estate market.
2. Registered Channel partners to create a better understanding about urban area and also
enquire whether they have prospective customers in Mumbai.
3. Unregistered Channel Partners to create a better understanding about suburban sector
and also the probable aspect of investing in the affordable section in the city.
Extents -
Kolkata city
Time -
June 5th to July 19th 2014 (45 days)
Number of days worked on field- 28

Total number of working days- 36
Sample size -
The survey was conducted on 87 Channel Partners and 6 competitors.
Sampling Techniques
We used simple random sampling though the database used here is compiled using several real
estate sites.
Tools for Data Analysis
The tools used to analyze the data obtained are the MS EXCEL, MS WORD & GOOGLE
DRIVE. Various tables were formed and charts (pie and bar) were derived wherever applicable.
Limitations
The survey was carried out in the city of Kolkata only hence the finding and recommendations
are for Kolkata City only. Also, the sample size is 87 only as finding channel partners in
unorganized suburban region is difficult as no data is available to track them.
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KALPATARU LIMITED
Focal Points of Competitor meet in KOLKATA
1. Loading -Saleable to carpet area varied from 12% to 20%

whereas carpet to saleable area varied from 13% to 25%
2. Base rate on saleable area varied hugely depending upon the location and the target customer
base
3. In most places floor rise is 15rs.
4. In Kolkata prime location charge is equivalent to floor rise in many cases.Exceptions are
there for riverside or roadside apartments.
5. Parking cost is 3.5 Lakhs to 4 lakhs at the beginning.
6. Amenities provided are as par market standards.
7. Show fat and model flat is same in most of the cases.
8. Investment in affordable segment is rather high than luxury segment.
9. Many apartments from the top builders are still unsold.
10. Huge depreciation in the values of real estate property, facing slow down which is difficult
to recover quickly.
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KALPATARU LIMITED
Conclusion & Way Forward
1. Throughout the Competitor meet we have gained the knowledge about competitor activity. Now if Kalpataru wants to
enter the market they can act accordingly.
2. Kolkata Real Estate sector stressing more towards affordable segment rather than concentrating on luxury section.
3. Suburbun region is quite lucrative for all the real estate big guns as price of the plot is cheap, huge middle class crowd
willing to buy properties
4. Amenities are at par with what kalpataru provides
5. Channel Partners in suburban region is unorganized and skeptic in nature.
6. These Channel partners can come handy if Kalpataru wants to invest in affordable or middle class segment.
7. Channel Partners in suburban region has ample work experience with middle class crowd. Registration is a stumbling
block.
8. Most of these Channel Partners are not tech savvy enough to use internet on regular basis.
9.Camac street, Jodhpur Park, Park street region are the places to be evaluated as these places has organized and registered
channel partners with prospective customers in Mumbai.
10. Many builders in Kolkata believe in direct approach rather than contacting a client through channel partner. Direct
approach to niche customers through seminar or direct invitation can be useful.
11.As Kolkata real Estate sector is facing a depreciation some people may show unwilling nature to invest in Mumbai
Property .However the condition may not be the same in 12 months time so prospective customers should be approached
again
12. Lodha group already entered Kolkata market and took a huge chunk of investment.
As par the information gathered they invited top CPs through consultancy agency and through a seminar described them
everything. Emulating the same can save time. Also it is wise to try few days later.
13. Top channel partners with niche customer base willing to talk to kalpataru management directly. This might help fast
forward the procedure.
14. So if Kalpataru wants to invest in new projects Kolkata suburban region will provide them lots of opportunity.If they
are looking for prospective customers then more niche areas such as Bhawanipur,Alipore,Park street,Camac
Street,newtown can be helpful.
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KALPATARU LIMITED
Things That I have learned through Internship
1. This is my first time working experience in corporate sector and I am grateful to Kalpataru Limited for providing me
such opportunities.
2. Under the guidance of Bharat Verma(Assistant Manager-Sales) I learned nitty gritty of Real Estate Sector.
3. Through this Internship now I possess a better understanding about Kolkata Real Estate Sector.
4. Learning how to keep your filing system up to date with simple tricks is a huge plus point which will me throughout my
life.
5. Communicating with people is the basic aspect of management study.I thank Kalpataru again for providing me such an
opportunity where I could go out and communicate with people. I have learned a lot through my mentor who helped me
brush up my communication skills. Later I have learned through trial and error method which helped me deal with people
with different attitude and stature to deal with.
6. While working on field I had deal with different situation with various issues which required versatile set of skill to deal
with. Learning how to work in a field work is one of the main plus point of the Internship.
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KALPATARU LIMITED
Bibliography
www.kalpataru.com
www.99acres.com
www.asklaila.com
http://www.prres.net/papers/Sonia%20_Real_Estate_Sector_The_India_Story.pdf
www.wikihow.com
www.commonfloor.com
www.magicbricks.com
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A Project Report On Kalpataru

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Registration No: 107-1121-0064-13

Real Estate, MUMBAI

Submitted in partial fulfillment of the requirements of the

AYAN ROY CHOWDHURY

Under the guidance of

INDIAN INSTITUTE OF SOCIAL WELFARE AND BUSINESS

Indian Institute of Social Welfare and Business Management, Kolkata

Indian Institute of Social Welfare and Business Management, Kolkata

Indian Institute of Social Welfare and Business Management, Kolkata

AYAN ROY CHOWDHURY

Indian Institute of Social Welfare and Business Management, Kolkata

Ayan Roy Chowdhury

Indian Institute of Social Welfare and Business Management, Kolkata

Indian Institute of Social Welfare and Business Management, Kolkata

Indian Institute of Social Welfare and Business Management, Kolkata

Vision & Value

Indian Institute of Social Welfare and Business Management, Kolkata

Mr. Mofatraj P. Munot

Mr. Parag M. Munot

Mr. Anuj MunotDirector, Kalpataru Limited

Kalpataru Power Transmission Ltd.

Indian Institute of Social Welfare and Business Management, Kolkata

JMC Projects (India) Ltd.

Property Solutions India Pvt. Ltd.

Indian Institute of Social Welfare and Business Management, Kolkata

Shree Shubham Logistics Limited

Indian Institute of Social Welfare and Business Management, Kolkata

Kalpataru Square at Andheri

Kalpataru Horizon at Worli

Kalpataru Habitat at Parel

Kalpataru Synergy at Santacruz (E)

Swapnalok at Napean Sea Road

Indian Institute of Social Welfare and Business Management, Kolkata

Indian Institute of Social Welfare and Business Management, Kolkata

Best in Show 'Website Features - User Experience'

Best Residential Project Of The Year 'Affordable

Retail Property of the Year

Indian Institute of Social Welfare and Business Management, Kolkata

Major categories in North America and Europe

Attached / multi-unit dwellings

Apartment An individual unit in a multi-unit building. The boundaries of the apartment

Terraced house (a. k. a. townhouse or rowhouse) A number of single or multi-unit

Condominium Building or complex, similar to apartments, owned by individuals.

Cooperative (a. k. a. co-op) A type of multiple ownership in which the residents of a

Indian Institute of Social Welfare and Business Management, Kolkata

Single-family detached home

Major categories in India and the Asian Subcontinent

Co-operative Housing Societies (CHS)

Indian Institute of Social Welfare and Business Management, Kolkata

Lal Dora Where people carry out commercial and

DEFINITION OF 'REAL ESTATE'

International Real Estate

a citizen of one country purchases a house in another country

International commercial real estate

International residential real estate

the rise in international tourism and travel;

Types of commercial property

Commercial real estate is commonly divided into six categories:

Categories of Commercial Real Estate

hotels, public houses, restaurants, cafes, sports facilities

retail stores, shopping malls, shops

office buildings, serviced offices

industrial property, office/warehouses, garages, distribution centers