Professional Documents
Culture Documents
Project Report Real State
Project Report Real State
ON
SALES PROMOTION OF REAL ESTATE MARKETING
FOR THE PARTICAL FULLFILLMENT OF THE REQUARMENT
FOR THE AWARD OF
SUBMITTED TO:-
SUPERVISION BY:-
Dr.UPENDRA SINGH.
SUBMITED BY
(MD SHAHID)
MBA (2011-13)
Enrolment No. 1166370019
Certificate
This is to certify that MD SHAHID S/O MD HASIM Student in
MBA( IV Semester ) Mahamaya technical University Greater Noida,
(U.P.) Has successfully complete his training at Amr Noida, Uttar
Pradesh.
He has undergone training with us as a project trainee doing the period of
internship that is from 01-June-2012 To 15-July-2012.
The project undertaken by him during this training period is Sales
Promotion in Real Estate Marketing in our Noida Group Housing
Project. He is hard working, sincere and focused in his work and can be an
asset to the college or the organization he works for.
We wish him all success in life.
Yours Sincerely
M/s AMRAPALI GROUP DEVELOPING INDIA.
(Project Manager)
Director
ACKNOWLEDGEMENT
A dissertation projects is a golden opportunity for learning and self development. I
consider my self very lucky and honored to have so many wonderful people lead me
through in completion pf this project.
I express my deepest and most sincere thanks to my (faculty member) and all my
teachers of MAHAMAYA TECHNICAL UNIVERSITY who provided me here
valuable time and information and I would like to express my gratitude to the teachers
and the entire Institute for giving me platform to have this wonderful opportunity and
being able to get a glimpse of the corporate word.
During the course of my project, I had the good fortune of being guided by prof.
Shelendra Kumar, Who with all his magnanimity supervised this project report through
all its stages. I have benefited a great deal from his incisive analyses and erudite
suggestions. I humbly acknowledge his congeniality. The atmosphere of a leering
organization that he has created along with his peers with his student has not student has
not only me but all so to others.
My Special thanks to all my friends for their unremitting help in numerous way, which
deserve adequate expression on this page.
I would also like to thank all the respondents of questionnaire for their cooperation and in
the end I would like to say that it was a great experience working in this project.
And lastly I am Thankful toPro.Mukesh Hansh Singh Under his guidance I was able to
completed my dissertation projects successfully
MBA (2011-13)
3
PREFACE
The successful completion of this project was a unique experience for me become by
Visiting may place and interacting various person, I achieved a better knowledge about
Sales Promotion in Real Estate Marketing industry. The experience which I gained by
doing this projects is being submitted which content detailed analysis of the research
under taken by me.
The research provides as opportunity to the student to devote his/her skill knowledge and
competencies required during the technical session. The research is on the topic
Sales Promotion in Real Estate marketing industry
TABLE OF CONTENT
PAGE NO.
CHAPTER -1
EXECUTIVE SUMMARY
[6-9]
CHAPTER -2
12]
INTRODUCTIONS
[11-
CHAPTER -3
31]
LITERATURE REVIEW
[13-
CHAPTER -4
60]
RESEARCH METHODOLOGY
[32-
1.)
2.)
3.)
4.)
5.)
6.)
RESEARCH DESIGN
SAMPLING DESING
SOURCES OF DATA
DATA COLLECTION TOOLS
METHOD OF DATA COLLECTION
TOOLS AND TECHNIQYES OF ANALYSIS OF DATA
CHAPTER -5
62]
CONCLUSIONS
[61-
CHAPTER -6
67]
[63-
CHAPTER -7
70]
FINDINGS /RECOMMENDATION
[68-
CHAPTER -8
72]
LIMITATIONS
[71-
CHAPTER -9
78]
OVERALL EXPERINCE
[73-
CHAPTER -10
81]
ANNEXURE
[79-
CHAPTER -11
83]
BIBLIOGRAPHY
[82-
CHAPTER -1
EXECUTIVE SUMMRY
EXECUTIVE SUMMRY
The realty industry today has changed so much that each sector needs special skills to
make it work efficiently. All over the world, prices are fluctuating. Global agencies
monitor trends in the top influential cities. With many foreign investments in India and
NRIs returning, the Indian property market watch is on the top most of every big agency.
Mumbai is the costliest city to live in Asia. To understand real estate marketing one
should at least have the minimum knowledge required to step into the complex industry.
Out there, plenty of smart operators are looking for suckers. They may not be dishonest
but will technically confuse you to pay higher price and outsmart you. Therefore, if you
know your onions and the deep layers beyond the skins it helps to get the best.
The purchasing power of the new generation of Indians has increased. They are investing
in real estate in a big way- in terms of investment and assets. People have acquired
refined tastes in housing needs and become professional in dealing with builders.
Financial companies and banks have given a boost to real estate marketing as well. To
add to this the government has allowed foreign investors also to test the market
conditions here have helped. Every area of real estate be it industrial, retail space, malls,
office complexes, residential colonies, hospitals, clinics and other healthcare units have a
vast potential for growth.
7
As more opportunities grow for people to work they also wish to invest in places close by
to live in. Builders or developers in various regions are now separately marketing each
space. Even home loan companies and banks are independently marketing the properties
they are giving loans. This helps them to guide their dedicated clientele and ensure the
marketing trends remain closely monitored for future development.
They generally have customer relationship executives who are assigned (usually area
wise) to assist customers in making decisions. They do have good knowledge, are
professionals on the job and customers do benefit if they are not very familiar with
various technicalities. Each company has its own marketing device and portfolio to
attract
Customers. Various tie ups with groups in India and overseas have taken place this year
with increase in FDI. MGF Developments based in New Delhi and Emmar Properties
based in Dubai have joined hands in the first quarter of 2006 for investments within the
country. Nowadays most of real estate focus is on shopping malls and residential
complexes. In some areas down south, the thrust is on IT parks, and corporate offices and
resorts.
However, on the other side everyone or every other executive does not feel the real estate
sector in India is being well marketed or managed. Yes, there are some gray areas, which
need to be covered up. For instance, foreigners who wish to invest or firms who are
looking at Indian partners are feeling the crunch of bureaucracy and familial ways of
working. This obviously makes it difficult for them to do business. The potential is there
but it needs to be tapped wisely. A proper way is to have real estate marketing with the
right professionals. Everyone wants to cash on the business.
After one and a half years of gradual consolidation, real estate in India has fathomed its
own comfortable ground, and is poised at the right threshold to take a giant leap in years
to come. While a differential pace of strengthening is evident across sectors, geographies
8
and segments, several property market indicators point to the fact that the industry has
indeed bottomed out in the current cycle. The fears of a possible double dip recovery
have given way to beliefs in the sustained healthy levels, if not a rapid growth.
The experience thus gained in this slowdown is invaluable and will serve real estate
strategists for years to come. The various stakeholders in the entire supply chain the
material manufacturers, developers, property consultants, occupiers, investors and policy
makers, have all emerged stronger and primed than yesteryears. And, if we have taken
our lessons right, caution and diligence would be the keywords for the industry in the
medium term.
On one hand, the stakeholders cant afford to sway on the riding waves of healthy
demand, and lose the ground advantage that they have so painfully regained by adapting
to the rapidly changing business environment. And on the other, the emerging
opportunities should be targeted with an unmatched fervor of potential and pragmatism.
The year 2011 would usher a new decade of opportunities for Indian real estate, which
will be a test of sorts for its stakeholders between these two fringes of the fulcrum. And
the winners would be the ones who balance caution with diligence evaluating all the
potential opportunities with pragmatism.
IT/ITES and BFSI would continue to account for 60-70% of office demand
Launch of Ultra Low Cost (ULC) Housing by private developers Housing for
All
Sustainability to gain focus as the industry looks forward towards IGBC Green
Homes standards
Retailers would continue to expand beyond Tier I into Tier II and III cities
CHAPTER -2
10
INTRODUCTIONS
1. INTRODUTION OF ORGANIZATION
2. OBJECT OF STUDY
INTRODUTION OF ORGANIZATION
Amrapali Group Developing India is the provide all type of land in Delhi, Greater Noida,
NCR, Noida. If you are seeking to Amrapali sapphire Sale Real Estate, we offer all the
support and services to make it easy for you.
Greater Noida and Noida is involved in wide spectra of services in real estate dealing
related services and assure you to provide the best of all at competitive prices. We
provide services such as sale of residential and commercial properties .We are worked for
last 10 year in real estate & construction.
Today real estate market in is growing at an amazing pace. Many people have started
relocating to the NCR area to enjoy better quality of life. Every other day there is new
project announced and many options are available to buy your dream home, suiting your
11
budget. You could buy a ready to move-in flat to meet your immediate needs or you
could invest in new projects launched or buy in resale of a project under construction.
2. OBJECT OF STUDY
1
2.
Property Valuation
3.
4.
Home Loans
5.
6.
7.
8.
Sales Promotion
9.
13
CHAPTER -3
LITRATURE REVIEW
LITRATURE REVIEW
The real estate market in India has become so huge that to get every thing or anything
specific within one roof is easy and difficult at the same time. With the kind of
commercial and residential property available on rent/lease/ ownership one has to refer
to portals or good companies dealing in various listings. Generally typical real estate
listing would necessarily include the following heads:
Properties Area wise - Separate sections of residential and commercial nature.
Within this are included partnership, brokerage, requiring agents, and direct deals with
builders. The property rates of each area are usually determined every two three years
unless in a particular area shoots up due to construction or upcoming prestigious piece of
property (i.e. a five star hotel, IT corporate park, shopping mall or multiplex). In such
14
areas the rents and buying properties do increase because of job opportunities and close
residential facilities.
Property Valuation
Many old properties may not be in very good condition. But they still are valuable. Why?
Mostly because they can be refurbished or rebuilt entirely. This is why they usually fetch
a good price. But one cannot depend only on brokers or agents or property owners to
evaluate the land. Sometimes the owner is greedy and expects a bigger price, sometimes
an agent in between quotes a higher price so that it benefits him, sometimes the buyer
may be just rich and may not have rival bidders or competitors so quotes a fancy pricey
according to his choice.
But now the industry has attained a level of professionalism and valuers who have correct
knowledge and are impartial are used to assess the property. Even if it has to be handed
over from one brother to another the valuer needs to correctly assess the worth of the
property. Usually a lawyer does the valuation so that a stamp of legality can be given to
the property and no disputes rise thereafter. A known property valuer will charge a good
amount to the job.
largest lenders to their customers all over the country. They are also giving loans to NRIs
to invest in property in India.
NRI Real estate Services
Right from choosing the property, availing loans, evaluating, filling forms online,
property management etc all services can be used. Real estate listings have the entire
database for the same.
Some real estate listings are also likely to include details and contacts of leading
architects, builders, news on upcoming projects, engineers, building materials and news
and articles which are likely to affect buying and selling decisions.
A regular monitor or a property watch is kept for any changes of rates in any zones.
Some also feature overseas properties and help in getting information to get there. A real
estate listing becomes popular with every new additional thing that will eventually help
the client.
The real estate market in India has become so huge that to get every thing or anything
specific within one roof is easy and difficult at the same time. With the kind of
commercial and residential property available on rent/lease/ ownership one has to refer
to portals or good companies dealing in various listings. Generally typical real estate
listing would necessarily include the following heads:
Designers are usually required by architects or by individuals who need homes to be
designed. Some firms employ designers, some of them free lance or some do just
renovation work. Depending on the need they are listed too. They also deal with people
with knowledge of Vastu and Feng Shui-both applications are in vogue with clients.
Sales Promotion at different Level and different programme
17
One of the most difficult marketing decisions facing companies is how much to spend on
promotional John Wanamaker, the departmental - store magazine, said, "I know that half
of my advertising is wasted but I don't know which half."
Thus it is not surprising that industries and companies vary considerably in how much
they spend on promotion. Promotional expenditures might amount to 30-50% of sales in
case in cosmetics industry and only 10-20% in the industrial equipment industry. Within
a industry, a low and high spending companies can be found.How do companies decide
on their promotion budget? There are mainly four methods of this
Affordable Method:
Many companies set the promotion budget at what they think the company can afford.
One executive explained this method as follows : "Why, its simple. First I go upstairs to
the controller and how much they can afford to give us this year. He says a million and
half. Later, the boss comes to me and asks how much we should spend and I say Oh
about a million and half."
It is a method which is uncertain one and makes long term planning difficult.
18
Sales Promotion
Promotion is the final element in the marketing mix. After the nature of product is
decided, its price fixed and the methods of distribution decided, the manufactures has to
take effective steps in meeting the consumers in the markets. In the present consumer
oriented markets it is the duty of manufacturers to know what is required by the
consumer. It is also their duty to make the customers know where, when how and at what
prices. The products would be available.
20
Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity :
1. Mass impersonal selling methods (Advertising).
2. Face to face personal selling (Salesman ship).
3. Activities other than personal selling and advertising such as point of purchase display
(P.O.P.) show and exhibitions, demonstrations and other non securing selling efforts.
This form of activity is called Sales Promotion.
2. A push blend emphasizes personal selling. Naturally firms adopting this method
develop a strong sales force at both the distributor and the dealer level. This method
would tends to push the product through the channel of distribution.
21
The term promotion is very often used as a synonym for selling. But selling is a narrow
term which includes only transfer of title or personal selling. Promotion on the other hand
is broader in its outlook and includes a variety of activities used ultimately for increasing
sales volume.
22
24
25
Various pair manufacturing companies offer this method. For developing brand loyalty
this method is quite useful. Sampling is a fast method of demand creation because one
knows the result as soon as the consumer has had time to use the sample and buy the
brand.
Disadvantage of Sampler:Offering sample in quit expensive. There is the cost of producing samples. The
distribution costs are also high. Sample have to be mailed to potential customers or to be
distributed through retail shops. There are also problems when the real product does not
resemble the sample supplied.
4. Money Refund Offer:An offer usually stated on the package is that manufacturers will return with in a stated
period part or all of the purchasers money if he is not completely satisfied with the
product.
5. Trading Stamps:A premium in the form of stamps is given by the sellers to consumers while selling
goods. The number and value of stamp that the buyer receives depends on the values of
the purchase. These stamps are redeemable through premium catalogues at the stamp
redemption centres.
6. Buy-Back Allowance:
This an allowance following a previous trade deal not offer a certain amount of money
for new purchases based on the quantity of purchases on the first trade deal. It extends
the life of a trade deal and helps to prevent part deal sales decline. It greatly strengthens
the buyers motivation to co-operate on the first deal.
26
7. Premium:There are various forms of premiums provided by the manufacturer as sales promotional
devices:(a) Coupons are supplied for effecting price reductions.
(b) Factory in pack premium these are popular in the case of Body food and Tin food
items, Spoons, Cups, Measuring, Glass etc. and such other items are packed with the
product in the box itself. Factory in pack premium are particularly goods for product
meant for children. The Bianca Toothpaste packs contain animal shape toys. These are
very attractive and qutie popular among the children.
(c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. But when the buyers pays
for it he has to pay only a considerably low price for the premium. This is possible for the
manufacturer purchases the items in bulk at a premium and his cost per unit as is
substantially low.
27
2. Inviting to Sales Conference and Convention:The gestures of regard and respect pave the way for better relation and co-operation.
3. Offering Reasonable Terms of Sale:Of all the forms of encouragement, the monetary incentive evokes immediate response.
Hence every producer must offer the most responsible terms of sale such as longer
periods of credit and higher rates of descants.
4. Supplying suitable packages and useful things.
5. By taking the return back.
6. By furnishing them with sales literature and display materials.
Aggressive Selling
Meaning:Goods are produced for market. Manufacturers have to make efforts to sell all they
produce. When the manufacturers uses various sales efforts to obtain increased sales
volume for his product it is called aggressive selling or offensive selling. The sales
efforts which a manufacturer makes to retain his customers i.e. to protect his already
established market against against his competitors is termed as defensive selling. In
contrast to this aggressive selling is concerned with the sales efforts made with the
express objective of selling more by expanding the market for the product of the selling
firm.
Aggressive Selling and Defensive Selling :Aggressive selling is based on the answer to the question how much does the firm gain
(in term of sales with profit) by using this method defensive selling is based on
consideration as to how much the firm will lose if it does not use this method increase of
sales can be obtained from two sources:-
28
29
Method of Aggressive Selling:Sales promotion efforts use for aggressive selling may be divided in two classes.
1. Trade Promotion.
2. Consumer Promotion.
1. Trade Promotion:Under trade promotion methods special incentives are offered to the trader to buy
products of the firm. Such incentive may take one or more of the following firm :(a) Cash Allowance:A definite percentage of discounts is allowed on the purchase of given unit of a product.
(b) Extra Product:Instead of giving any cash allowance extra product is given with each unit of product
ordered. For instance if a box normally contains 20 Cakes of Soap, special box contains
25 cakes may be made and sold at the same price as that of the box of 20 cakes.
(c) Gifts :Various gifts are awarded in return for an order of a particular magnitude.
2. Consumer Promotion:Under consumer promotion method special incentives are offered to the consumers to
buy the firms product. The more prominent amongst such incentives are as following.
30
(a) Coupons:A coupon of a giving value is sent to the consumer. By presenting this coupon to the
retailer consumers can purchase a particular product mentioned on the coupon at a
reduced price. The retailer sells the products mentioned. In the coupon to such consumer
(consumers presenting the coupons) under and agreement with the manufacturer at a
price lower than the user retail price. Thus the consumer get the benefit of reduced price
to the extent of the value of the coupons.
(b) Self Liquidating Offers:Under this system, the firm offers an article at an attracting price if the consumer send a
given sum of money accompanied by a given number of box tops from the packages of a
particular product the benefit to the consumer is that he receives the articles at a bargain
price.
(c) Bargain Packs:Under this system a product is sold at a reduced price for a short period Bargain pack
method encourages new consumers to try the product. It is also helpful in obtaining large
displays in the shops.
(d) Sampling :The method involves giving the product or a small quantity of the product to a consumer
free with the hope that the customer will be favourable impressed with its actual use and
will eventually become a regular purchaser of the product.
A firm selling new product or an extensively improved product finds this methods useful.
Also a firm whose market is hold by competitors whose free sampling almost expensive.
The above mentioned methods may be reinforced by adopting.
(i)
(ii)
(iii)
(ii)
Instead of using wholesalers, the firm may develop its own sales force to call
directly on retailers.
(iii)
(iv)
(v)
(vi)
In fact, an ingenious sales manager can devise any number of incentives schemes for
promoting the sales volume.
32
CHAPTER -4
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Any activity done without an objective in a mind cannot turn faithful. An objective
provides a specific direction to an activity. Objectives may range from very general to
very specify , but the should be clear enough to point out with responsible accuracy what
33
researcher wants to achieve through the study and how it will be helpful to the decision
maker in solving the problem.
Each research study has its own specific purpose. It is like to discover to question
through the application of scientific procedure. But the main aim of our research to find
out the truth that is hidden and which has not been discovered as yet.
is especially important in the behavioral science where the aim is to discover the
underline motives of human behavior. Though suc research we can analyses various
34
factors which motivate to people to behave in particular manner or which make people
like or dislike a particular thing.
Quantitative Research: - Quantitative research is based on the measurement of quantity
or amount. It is applicable to phenomena that cab be expressed in terms of Quantity. So
we can use it in our research for collection of all the numerical data.
2).SAMPLING DESIGN:Sample Design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items for
the sample
Marco-economic Overview
The Indian economy currently stands among the world's fourth largest growing
economy in terms of purchasing power parity and holds the distinction of being a key
contributor to Asia's balance of payment surplus. India's GDP is estimated to be the third
largest in the world by2020. India is also considered the second most attractive country in
theworld for Foreign Direct Investment (FDI). Forex Reserves (excluding gold and
SDRs) stood at US$157.25 billion at the end of July 2006. India now holds the fifth
largest stock of reserves among the emerging market economies and the sixth largest in
the world.
36
The performance of the country has been consistent and steady over the past three years
with an average annual growth rate of 8%. The growth trend is being led by positive
movements across sectors in agriculture, manufacturing and services.
37
In recent years, the broad based growth in services sector has been a principle driver of
the GDP growth. Business services (including Information Technology (IT) and IT
Enabled Services), communication services , financial services, hotels and restaurants
and trade(distribution) services are among the fastest growing service sectors. Indias
share in the world market for IT software and services (including BPO) increased from
around 1.7% in 2003-04 to 2.3% in 2004-05 and an estimated 2.8% in 2005-06.
The proportion of manufacturing in the GDP has remained stable at around 25%,
however, the growth rate of manufacturing has increased over years, from 2.7% in 2001
to 9.0% in 2006 against the growth rate of 2.3 % and 9.8% in agriculture and services
respectively. Manufacturing Industries like textiles, automobiles, cement, steel, petro
chemicals,
Infrastructure (civil aviation, roads, and ports), electronics ,beverages and tobacco
products have been the prime drivers in Indias Industrial growth.
38
The last few years have seen Indian market mature through regulatory reforms
(rationalization of stamp duties, reform of urban land ceilings ), improving products in
terms of quality and technology, changing tenant profile (MNCs, and respect for tenancy
laws), and improving management and maintenance models (enhanced product lifecycles and sustained project / real estate yields). Although the initial real estate boom was
concentrated in places like Bangalore and the National Capital Region of Delhi
(including Gurgaon ), more recently the geographical spread has widened. There has
been a significant shift in real estate market from metros to its suburbs and to tier II and
tier III cities. Lease rentals and occupancies have been picking up steadily and there is an
increasing demand for quality infrastructure across various segments of the real estate
sector.
39
40
41
42
in process of setting up SEZs include TCG Refineries of the Chatterjee Group (SEZ
refinery at Haldiain West Bengal), Suzlon Infrastructure (hi-tech engineering products
and services near Coimbatore in Tamil Nadu, Udupi in Karnataka and Vadodara
in Gujarat), Hindalco ( aluminum SEZ at Sambalpur in Orissa), Genpact (IT SEZ at
Bhubaneshwar in Orissa, Jaipur in Rajasthan and Bhopal in Madhya Pradesh), Vedanta
Alumina ( aluminum SEZ at Orissa). Seeking the permission for SEZs are also a number
of real estate developers, including DLF, Ansals, Omaxe, Parsvnath, Shipra Estate and
Sunny Vista Realtors
Residential:
44
Accounting for more than 70% of the sector in terms of space, residential segment
growth is driven by urbanization and the migration of households up the income curve.
According to the National Council of Applied Economic Research estimates, the number
of urban house holds earning more than INR 500,000 (about US$12,000) should more
than double to 7.6m in 2006-10.
Commercial:
Rapid growth in IT/ITES services (manpower in the sector has doubled in the past three
years To 1.6m) is the main driver of Grade A commercial office space demand .Jones
Lang LaSalle, a property consultancy, estimates that the absorption of office space in the
top seven cities in India was 31.1m square feet in 2006.
Retail:
According to CRIS INFAC, the penetration of organized retail into the overall market
will increase from 3.5% in 2005 to 8% in 2010, the reby driving the demand for mall
space.
Hospitality:
According to CRISIL, the number of 5-star rooms is expected to grow by60% in the next
four years with foreign tourist arrivals growing at 10%CAGR
Change in legislation:
In many states, strict laws like the Urban Land Ceiling Act (which defines ceiling
of land holdings in urban areas) have been repealed or modified.
Consumer preferences:
Consumers are now willing to pay premium prices for better amenities and a good
brand. In response, most of the bigger developer sare scaling up geographically, which
necessitates rigorous systems and processes
46
Mumbai is also the fashion capital of India, so it is one of the foremost cities to be
hit by the retail buzz. With the opening up of the retail market, there has been a growing
demand for retail properties in Mumbai. This has created a viable market for mall space
and other retail stores and showrooms. These retail stores and malls are either
owned by a business group or leased for hefty prices as the demand is high.
The property prices as well as the increase in rental values in Mumbai owe much of its
credit to the large scale investments in the commercial sector. Mumbai has always
been the hot favorite for most of the corporate sector to have their headquarters in the
city. And with increasing investments by MNCs in the IT, ITES and the BPO sector,
there has been a growing demand for office space; which have consequently created
an imbalance in demand and supply for residential properties. The rental values in
Mumbai have also in high corresponding to that in other metros.
Even Indias leading conglomerates have taken up commercial space here. The
state administration has already shifted wholesale commodity markets to Navi Mumbai.
So, you have endorsements from different segments that Navi Mumbais commercial real
estate is much sought after, he says. Suresh Haware, MD, Haware Builders concurs.
Even at the nano end of the commercial real estate spectrum, demand is high,
he says. It is the small offices and shops segment that have witnessed the highest
demand at Haware Builders commercial projects in Navi Mumbai, he reveals.
Today, industrial units in Navi Mumbai are relocating to locations in Raigadh
district and commercial is the latest buzzword in Navi Mumbais real estate scenario,
says Vijay Gajra of the Gajra Group. Commercial options in Navi Mumbai span a huge
price band. Growth of the residential segment in Navi Mumbai, prior to that of the
47
commercial segment, actually works out in favour of the end-user today, as manpower
resources are easily available, he points out. Commercial real estate in Navi Mumbai
comes at competitive prices vis--vis other options in the Mumbai metropolitan region
(MMR), with the added advantage of being located in a well-planned city, adds Gajra.
IT/ ITeS SEZs and businesses that have anything to do with rail/road transport and
logistics or shipping, are proving to be the next big segment in Navi Mumbais
commercial spectrum, shares Mayur Shah, honorary secretary, MCHI. Ramneek Bakshi,
principal of global property consultants, LJ Hooker, points out that MNCs view India
within the parameters of the Brazil, Russia, India, China (BRIC) equation.
When they look at India as a business entity, Mumbai takes prime position. When they
start looking out for space, Navi Mumbai, which forms the third level of real estate
pricing, is attractive for MNCs looking to set up shop in the Mumbai region, he
explains. At the Norwegian consulate in Mumbai, George Mathew, honorary consul
general, concurs, If you look at real estate pricing trends in the MMR, Navi Mumbai fits
the bill on many counts. However, the clincher is the price efficiency and developed
infrastructure that Navi Mumbai provides, he concludes.
Appreciations
The hike in demand as well as supply and appreciation in capital values are
attracting good attention from overseas investors. The Mumbai real estate has become a
reflective of the high growth in Indian property market. There has been an increase in
real estate value across micro markets in Mumbai as well.
Mumbai is looked upon as one of the most organized and transparent property
market in India. With cash components and transactions shooting up in the last two years,
the city has gained much popularity among the investors, both domestic and
international. The investment market has been thriving with excellent returns going high
over the past few years. The real estate boom and an upsurge in development activities in
major parts of Mumbai have led to a rise in investment prospects in commercial and
residential sector.
48
Known locations like Bandra-Kurla Complex (BKC) and Lower Parle have seen
appreciations in commercial spaces falling under the category of Grade A. The
occupancy levels in other preferable locations like Andheri West and Nirman Point also
increased in the current year and are believed to have marked the rise by 90-95%.Another
mark appreciation is in regard to commercial properties in Mumbai, and is prevailing in
the city's micro markets barring a few exceptions.
retail bases. Then of course, the government permitting foreign direct investment
(FDI) up to51% in retail trade has also brought about major moves in retail industry.
The demand for property whether commercial or residential, is very high in
Mumbai. There has been steady demand for consecutive years and has resulted in an
increase in the yield rate. New real estate projects in Mumbai are always in queue to be
launched by private as well as by government. This encouraged overseas investors
especially Non Resident Indians (NRIs) to make significant investments in Mumbai
properties.
With an excellent accessibility across the globe, the city of dreams, Mumbai has
emerged as an ultimate destination for most people. As per property surveys, one can sell
any property and get a price which is fairly good. Within the real estate industry, it is
believed that such periods come in cycles and bring an apt time to cash upon.
What makes real estate in Mumbai so exciting are an ongoing demand and the
proposed projects that are to be executed in approaching years. Builders always have
special offers and attractive schemes in store for end consumers. Capital Values of
quality apartments, in well-maintained old buildings and upcoming projects, in South and
South Central Mumbai, have gone through the roof
49
Agency
Agency is that branch of the real estate business which engages the attention of the
greatest number of persons who are concerned with the business, and in that respect it is
of prime importance. It is divided into two parts, brokerage and management.
A broker is a person who for compensation, usually proportioned to the value of
the subject-matter, brings about transactions between principals. Brokerage has two
divisions according to the kinds of business which usually engage the attention of the
broker. The sales broker is a broker who devotes his time and attention to the bringing
about of the sale or exchange of real property. A loan broker is one who gives his
attention to the obtaining of loans upon the security of real property. One man may
practice both branches of the business, or a specialist may devote himself to either of
these branches.
Management, the second branch of agency, is the operation of deriving income and
caring physically for real estate structures. It concerns itself not only with the deriving of
income, but with the keeping down of expenses and the care in making expenditures. It is
popularly known as "Agency."
VISION
Benchmarking our services in terms of People, Pace & Passion to be the best in the
Industry.
MISSION
To
provide
requirements
reach
its
creative
of
our
optimal
solutions,
clients.
potential
by
To
customizing
encourage
combining
its
&
our
services
facilitate
diverse
to
our
strengths
to
suit
the
team
to
provide
Alliance today has the best talent on its board of directors who are professionals in
real estate, finance, accounting and taxation striving to render the best of services to its
clients. Alliance today has given shape to and has structured some of the most complex
and landmark transactions for reputed clients.
They add value to your properties through their experience and expertise, with
their wide network of clients and contacts all over India and global arena. They assist
everyone in identifying opportunities and the right partners to compliment their
capabilities.
Projects HandledLittle World Mall:
They had sole mandate to lease the mall which started in October2007in Kharghar.
Complete project was completed by them with good anchors and brands as listed below:
Aditya Birla more, Archies, Levis, Levis Signature, Max Life style, Adlabs, The
Raymond Shop, Reid & Taylor, Welspun, Thomas Scott ,Connections, Koutons,Planet
M, The Mobile Store, Homes & Apparels, Lilliput, Carmicheal House, Kittens, Thomas
Scott, Gini & Jony, LaDiamond, Nice Looks, Dosa Plaza, China Land, Chopking,
IndianTadka, Moti Mahal, Caf Energise, Caf Bollywood, Kwality Swirls Juice Zone,
Namrata Cup Corn .Curries and Parathas, etc.
City Center Mall:
They have leased Operational Mall on Palm Beach Road, Vashi. The
list of brands which we introduced to this mall are:
Levis, Roop Sangam, Kittens, Gini& Jony,La Diamond, And Design,Adora, M&B
Shoes, Black berry, Weekender, Infancy, Timex, GKB Opticals, Black Berry, ITC John
Player, Unistyle, Addidas, Nike, Spykar, Lee Cooper, Ruff Kids, L effect, Live In,
Lovable, Dominoes , Nice Looks, Top Corn, Caf Coffee Day, Ameoba Game Zone,
Stone age Restaurant.
51
Bank Finance:
Quality Objectives
Continuous improvement in the quality of services.
Prompt response to customer complaints
Strong property data bank.
Aggressive follow up & due diligence.
Panel of associates for legal, finance, market research,investments and other allied
subjects.
Handling properties in all metros and all other cities across thecountry
52
Overview
Alliance Property Services is professionally managed company Having presence in
Mumbai, India in the following activities:
1. Real estate Sale and lease.
2. Lease of retail outlets in malls and High street.
3. Joint ventures with developers.
4.
Leasing
and
sale
of
entire
properties
with
High
Value
Residential
Office
Commercial
IT Park
Hospitals
Multiplex es
Indus trial
Institutional.
Advisory Services:
Investment Advisory Services
Third Party Due Diligence & Service Management
Feasibility Analysis
Lease & Utility Audits
Relocation Studies
Property Valuation & Tax Consulting
Site Selection Modeling Analysis & Strategic Planning
Merger and Acquisitions
Joint Venture, Collaborations, Franchise
Foreign Direct Investment (FDI)
Allied Services:
Valuation and Land Appraisal
Tenant / Purchaser Representation
Research & Feasibility Studies
Project Management
Bank Finance: Preparing project and feasibility report, Bank
Turnkey Financing Solutions
a)
b)
c)
55
A good Real Estate Marketing Agency always puts special emphasis on the right
kind of information that one needs before starting Real estate Marketing and for that the
agency normally conducts some kind of survey to gather the right kind of information.
Later the Real-estate marketing Agency depending on that report develops their ways of
marketing. Nowadays a lot of Real estate marketing is done through the help of the
Internet. One can have various websites that do marketing for different real estate
properties for a certain amount of money. One also needs to make the website precise and
filled with to the point information. The Real estate Internet Marketing is a very simple
process and is cheaper in nature as well. Although one needs to keep the demands and the
reasonable amount of price in mind.
I was functioning under operational projects of Alliance Property
Services for Harares Commercial Projects namely Centurion Commercial & Shopping Complex, Nerul
Vashi InfoTech Park, Vashi
Haware Infotech Park, Vashi
Fantasia Mall, Vashi
In marketing, Promotional strategies were used namely News paper advertisements,
Visual media ads in local cable channels
Direct Marketing(door-to-door) in commercial complexes and
Through www.iproperty.com
Business cards can either by a waste of paper or an effective bridge between a
prospect and their potential as a long-term client. So, follow-ups of all the business cards
that were dropped in at the site office were done on a daily basis.
Brokers & agents were also approached to get their clients for the deals. Telephone &
Email follow-ups also formed a part of my job. There was face-to-face interaction with
the customers for the sale of shops/offices by convincing them to buy.
56
Customer Database was also maintained considering various heads like- Date of
purchase, Shop/Office no., Name of the customer, Area of the shop/office in sq.ft., Total
value of Shop/office in Rupees, Total Received(cash/cheque) and Balance amount
ADVANTAGE FOR REAL ESTATE AGENT:
10-Year Tax Holiday
The finance Ministry has announced a 10-year tax holiday for developers of Industrial
parks set up from April 1, 2006 to March 31,2009. According to the Industrial Park
Scheme 2008 notified by the Central Board of Direct Taxed (CBDT), the industrial park
developers will be eligible for 100% tax deduction which is to be provided for
10consecutive assessment years out of 15 years after the commencement of operations of
such units. The developers will be free to choose the 10consecutive years for the purpose
of availing themselves of the tax holiday.
Price Variations in India
There are unbelievable variations in the prices of real estate sector in the past. Which
mainly affect to the sale of business. Mainly there are two causes for the same:
Per Capita Income
GDP at Market Price
Per Capita Income
As depicted by fig. 2 per capita income is increasing in India, which has increased the
purchasing power of the people. Due to this over the last year (2006-07) houses prices
have raised by 10-90% and commercial property prices by 10-30% in different area of
India. Correlation .996 is found between PCI and real estate prices. Thus there is a
positive correlation between per capita income and real estate prices.
GDP at Market Price
GDP, the indicator of the national growth, from the past 2-3 years is increasing by 6.5%
to7.5%. Every rupee spend on the construction add to nearly 60% of GDP. As shown by
the figure the GDP has increased from the 2463324 crore to 3529240 crore from 2002-03
57
to 2005-06, so it indicates that how the spending on the construction sector helps the realestate prices to increase.
Clear Title
90% of the lands in India do not have clear title. The ownership is unclear, thereby
creating a scarcity of land. This is due to poor recordkeeping and outdated complaint
processes. All updated records must be computerized to increase transparency in land
ownership. And special fast track courts must be set up to clear all legal land disputes in a
short period of time.
Stamp Duty & Registration
The cost of transferring land titles must be reduced from rates of 10%stamp duties to
reasonable levels of 3 to 5%; similar to prevailing rates in developed countries. This will
encourage sellers to pay stamp duties, instead of trying to cheat the government, thus
increasing the revenue for the country. The high duties have also encouraged
unaccounted money being used in most real estate transactions in India. The registration
procedure should also be made transparent and simple so that corruption can be
minimized.
58
Better facility to different sectors which affect the real estate prices.
The FDI into the country affects the real estate FDI and real estate having a positive
correlation leads to the boom in this sector. Increase in FDI from 2006 to march 2007 is
10%. Earlier it was 16% and now in2008 it is 25%.
The interest rate also affects the real estate prices because it affects the lending and
borrowing by the investors.
The growth in the real estate sector is between 25-30% in a residential Sector, 10-15%
in commercial sector and agriculture sector.
Housing sector constitute 80% of real estate in terms of value and 20%
by commercial sector.
In residential segment, availability of easy home finance and rising purchasing power
has driven the growth. Builders are launching high-end, life style residential products to
cater to the growing bunch of high net worth individuals.
In 2008 the growth of real estate sector is going down due to high inflation and hike in
home loan rates by the banks following the increase in bank rate and SLR by the RBI
The outsourcing and IT/ITES industry have contributed to the demand for quality
office-space. The estimated demand from IT/ITES sector alone is expected to be 150mm
sq. ft. of space across the major cities by 2010.
Suggestions
The following recommendations are made this paper-
60
Due to high prices the lower income group is not able to purchase the shops, so
company should take kept in mind to protect the lower income group.
The agriculture land covered into the commercial and residential purpose. But the
population is also increasing day by day. So company should steps for the same.
The investors should analyze the type of project in which they are
going to invest and the potential returns from it.
Privatization of Airports and ports needs to be speed up.
There is a lack of proper data and management of the real estate sector so company
should take the corrective steps in this regard so that the proper estimation and
management of the real estate can be made possible.
Commonwealth is scheduled for 2010. Hotels, sport stadiums another infrastructure to
have successful games need to be expedited. This is another great opportunity for foreign
developers and investors to step in India. Thus more and more encouragement should be
given to foreign investors. Stamp duty is extremely high and must be rationalized and
brought down to 2-3% as per global practice, which is now in India varies from 5- 6%.
Due to lot of investment avenues in real estate in India, fraud cases are
also increasing day by day like in Delhi deconstruction of buildings. Thus
Careful measures and laws should be enacted to deal with these types of situations.
61
CHAPTER -5
CONCLUSIONS
62
CONCLUSIONS
After studying all the factors of the real estate it can be concluded
that the Real Estate is a very wide concept and it is highly affected by the macroeconomic factors like GDP, FDI, per capital income, Interest rates and employment in the
nation. The most important factor in the case of Real Estate is location which affects the
value and returns from the Real-Estate. India needs a stronger capital market base for
property financing. The debate on the potential introduction of REITs and real-estate
funds points in the right direction. The introduction of REIT s in2007, will give
international investors in particular a familiar investment vehicle. Private investors could
also enter into indirect investment in real-estate. Although interest in new projects is most
likely to come primarily from institutional investors, the rising middle class is likely to
seek new instruments aside from direct property investments in the medium terms, in the
end we can say that the investment in Real Estate in India is aviary good investment
opportunity. But one should be very careful while taking decision in this direction due to
rising inflation and interest rates. Legal issues should also be kept in mind while
choosing a property.
63
CHAPTER -6
IMPLICATION OF THE STUDY
64
investments of USD 4 bn. Roughly half of this is for the seven biggest cities. In his latest
budget speech on February 28, 2006 the finance minister also announced that the
government wishes actively to promote the establishment of new towns.41 Channelling
the process of urbanisation into new agglomerations is a plausible step, given the growth
scenarios for the metro cities. But it requires additional funding and is likely, at best, to
make an impact on real estate markets in the medium term.
Response Variance Across Sample Characteristics. The sample was tested to see whether
the responses to the practice questions varied significantly relative to a number of control
factors. The factors tested were: Real estate portfolio size CRE team size CRE&FM
operating budget size Professional membership (73% of the sample are industry
association
Core
Net
Global
members) CRE
organization
structure Industry
sector Enterprise annual revenue Total number of enterprise employees No significant differences
across responses were found based upon these factors. The only difference in means that
was greater than 1 (i.e. one point difference in average response on the 1-7 scale) was the
difference between the lowest and highest industry sectors. Regus Global Report Corporate
Real Estate Impact on Enterprise Success April 2011 Findings: Fundamental CREM
management Practices The study collected information regarding four fundamental
corporate real estate practices: organizational structure, budget control, CRE reporting
and use of suppliers. Responses were limited to four choices. The responses are
informative on their own, and were also compared to the practices maturity scales to see
if any of these fundamental characteristics correlated with the survey results, as discussed
above. There is very little information published documenting the relative distribution of
these practices, and the results shed light on some frequent debates. Further, one question solicited the
opinion of the survey respondent regarding senior managements view of CRE .Given the increase in
tele work (where employees are allowed to work from home or another location) and
implementation of alternative workplace strategies (AWS), the survey also enquired into
current telework and AWS practices, and asked respondents to predict future policies and
practices regarding alternative work and sustainability at their company. Fundamental CRE
Practices Among the four generic approaches to CRE organizational structure presented
in the survey, a hybrid of functional and geographic operations was most commonly
66
cited, possibly due to the global scope of many of the participating companies. The rest
evenly balanced between either functional or geographic driven organizational structures,
as shown in Figure 2. None of the participating companies managed corporate real estate
at the business unit level. Figure 3 summarizes the budgetary control and real estate cost
charge-back policies at the companies surveyed. The most common practice is to budget
and manage CRE costs centrally and then recharge all costs back to business units. There
is a fairly even spread across the other three methods. In the majority of the organizations
(78%) the central CRE function has control of the overall CRE budget and through this
should be able to strongly influence and drive improved practice and policies consistently
across the entire portfolio. Figure 2: Basis for CRE Organization Structure Figure 3:
Budgetary Control and Recharging Practices.
CRE function reports into the overall corporate management reporting line is also quite
diverse across the sample, as Figure 4demonstrates. The survey respondents most
frequently report to the Chief Financial Officer, followed by both the Chief Operating Officer and
the Technology function. Corporate Real Estate Impact on Enterprise Success The survey
collected information about the level of activity where suppliers are used. The results are
shown in Figure 5. Given that the survey was targeted at the largest corporate occupiers
who would potentially be best positioned to benefit from integrated services across the
globe, it may be surprising that 38% of the respondents only use suppliers tactically at a
local or national/regional level. At the other end of the spectrum, an equal proportion of
respondents engage suppliers on an an international level based around a limited number
of principal relationships responsible for integrated solutions across a wide range of
functions and/or countries. This points to a considerable growth potential for the major
international service providers, as over 60% of those surveyed arent currently using
integrated solutions on an international b
67
CHAPTER -7
FINDINGS /RECOMMENDATION
69
FINDINGS /RECOMMENDATION
Referrals
It has been estimated that in North America, referrals and word-of-mouth
recommendations generate 85% of new business.
In effect, a referral or recommendation, is third party confirmation that the business,i.e.
the agentis competent and trustworthy. The challenge for agents is to increase the
number of people who believe that they are sufficiently competent and trustworthy to
recommend them to other people. This reputation for competence and trustworthiness
doesnt just happenit has to be earned.
Advertising
Advertising properties listed for sale represent implied endorsements of agents
competence and trustworthiness. After all, the owners of the properties advertised for sale
must have believed the agents to be competent and trustworthy; otherwise they would not
have hired them to help sell their properties.
Open Houses
Open houses allow real estate agents to showcase their technical expertise and personal
characteristics. By interacting with agents at open houses, prospective clients can assess
individual agents competence and trustworthiness and by extension, how the agent can
help them. For prospective clients, its like test driving a new car.
Networking
Networking is the most multi-faceted, versatile and effective marketing tool available to
real estate agents. Among other things, it allows them to exchange information and
showcase their trustworthiness. Above all, it also makes it possible to interact with other
people, who ideally will like and trust an individual agent well enough to do business
with, and refer others to him or her.
70
Prospecting
The best way to develop a client base is by well focused prospecting.
Prospecting is an essential marketing strategy. It generates new leads that can be
converted into clients. It also provides the inflow of new clients. These clients will
ultimately become part of the pipeline by contributing repeat and referral business.
A Benefit For All Agents
All real estate agents can benefit from applying the best marketing practices of high
producing agents. Specifically, this means that the key marketing strategies of high
producing agents will help you attract clients.
71
CHAPTER -8
LIMITATIONS
72
LIMITATIONS
#
The Sample for research was chosen only from a limited area.
Complete data was not available due to company privacy and secrecy
73
CHAPTER -9
OVER ALL EXPERIENCE
74
India has enormous potential in all its property investment categories. Strong population
growth, a large pool of qualified workers, greater integration with the world economy
and increasing domestic and foreign investment are fuelling demand for office, retail and
residential property. Although not discussed in depth in this paper, this demand growth
can also be applied to many special property classes, such as hotels or second homes.
Going forward, it will be a matter of exploiting this potential. For the real estate industry,
three aspects are most particularly important. First, further opening to foreign investment
is desirable. Not only do international investors have the means to finance new
construction projects, but also possess the expertise in market analysis, facility
anagement and building construction. In the medium term these will act as catalysts to
bring greater transparency to the market. Second, India needs a stronger capital market
base for property financing. The debate on the potential introduction of REITs and real
estate funds points in the right direction. The introduction of REITs in 2007 will give
international investors in particular a familiar investment vehicle. Private investors could
also enter into indirect investment in real estate. Although interest in new products is
most likely to come primarily from institutional investors, the rising middle class is likely
to seek new instruments aside from direct property investments in the medium term.
Third, the government needs to step up developing the urban infrastructure. In
recognition of this, Indias finance minister Shri P. Chidambaram presented an extensive
urban investment package during his budget speech for fiscal year 2005/2006: If our
cities are not renewed, they will die.40 In December 2005 the Jawaharal Nehru National
Urban Renewal Mission estimated that the selected 63 cities will require annual
investments of USD 4 bn. Roughly half of this is for the seven biggest cities. In his latest
budget speech on February 28, 2006 the finance minister also announced that the
government wishes actively to promote the establishment of new towns.41 Channelling
the process of urbanisation into new agglomerations is a plausible step, given the growth
75
scenarios for the metro cities. But it requires additional funding and is likely, at best, to
make an impact on real estate markets in the medium term.
2. Total 25 towers A,J,N,V, towers are 4BHK & another tower are 2&3BHK.
6. From this project Botanical Garden, Metro Station-37, Metro Station -18 & GIP
mall only 5min.Drives.
76
77
TYPES
Type-1
Type-2
Type-3
Type-4
Type-5
Type-6
BHK
2BHK + 2 toilet
3BHK+ 2toilet
3BHK+ 3toilet
3BHK+ 3toilet+Servent Room
4BHK+ 4toilet+Servent Room
4BHK+ 4toilet+Servent Room
PREFFERED LOCATION CHARGE (PLC);1. First Floor 2. Second Floor 3. Third floor 4. Fourth Floor 5. Fifth Floor -
200/sq.ft.
175/ sq.ft.
150/ sq.ft.
125/ sq.ft.
100/ sq.ft.
78
AREA
1140/sqft
1390/sqft
1640/sqft
1850/sqft
2465/sqft
3075/sqft
=
=
6100/sqft
5900/sqft
OTHER CHARGES
1.
4,00,000 Rs
2. Lease Rent
150/sqft
3. Power backup
15,000/kv
40/sqft
40/sqft
6. Club Membership
1,00,000 Rs
7. Maintenance Deposit
20/sqft
On possession time
SPECIFICATION :-
1. Floor
Verified Tiles
2. Wall -
3. Kitchen-
4. Toilet -
5. Master Bedroom
Wooden flooring
6. Ceiling -
P.O.P.
80
81
CHAPTER -10
ANNEXURE
82
ANNEXURE
83
E. I would like to investigate this type of neighborhood (check all that apply):
Urban
Suburbs
Town
Mountain Area
F. I will consider:
only single family homes
villa and penth house
both of the above
G. YES, I must sell my present home before considering the purchase of another
home.
I would estimate its selling price at approximately: in Rs.
200,000-250,000
251,000-350,000
351,000-500,000
501,000-750,000
751,000-1,000,000
1,000,000-1,500,000
Over 2,500,0000
I do NOT need to sell my present home before purchase.
H. I need a new home:
Immediately
In 90 days
In 6 months
Within a Year
84
CHAPTER -11
BIBLOGRAPHY
85
BIBLOGRAPHY
Different Journals.
Indian Real Estate marketing ( Anil kumar saini )
www.google.com
www.wikipedia.com
86