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Summer Internship Report A0101909235
Summer Internship Report A0101909235
ON
Diversification
By
Pardeep Kapil
A0101909235
MBA Class of 2011
Under the Supervision of
Dr. Shalini Trivedi
Senior Lecturer
Economics Department
In Partial Fulfillment of Award of Master of Business
Administration
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH,
INDIA
2010
AMITY UNIVERSITY UTTAR PRADESH
1
DECLARATION
Date:
Pardeep Kapil
Enrol. No: A0101909235
Place: Noida
ACKNOWLEDGEMENT
I express my sincerest gratitude and thanks to honble, Mr. Amit Singh, for whose
kindness I had the precious opportunity of attaining training at TheBricks. Under his
brilliant guidance I could complete the project being undertaken on the Diversification
of TheBricks from real estate firm to publications successfully in time. His meticulous
attention and invaluable suggestions have helped me in satisfying the problems involved
in the work. I would also like to thank the overwhelming support of all the people who
gave me the opportunity to learn and gain the knowledge about the various aspects of the
industry.
I would like to thanks Dr. Shalini Trivedi (Faculty Guide) for their constant enthusiastic
encouragement and valuable suggestions without which this project would not been
successfully completed.
Pardeep Kapil
A0101909235
Table of Contents
CHAPTERS
1.
PAGE NO
Executive summary
Introduction
8-23
Literature Review
24-29
3.
Research Methodology
30-36
Data Analysis
37-52
5.
Conclusion
53
Recommendations
54
7.
Limitation s
55
8.
References
56
9.
Annexure-I
57-58
10.
Annexure-II
59-60
Executive Summary
The main objective of the project is to study the diversification of THE BRICKS, a real
estate company to publications with respect to the difficulties and the problems faced by
them during the diversification and also to study how they are tackling with all such
situations. The report consists of the brief summary of the company and apart from this it
clearly mentions the objective of the study and the research methodology used i.e. both
the primary as well as the secondary data. The data collection method used is structured
non disguised questionnaire in which the types of questions used are open ended,
multiple choice and close ended.
The report consists of a detailed view of the tasks, which we have been undertaken
to analyze the scenario of the real estate market and the buying behavior of the people
while purchasing the property. For the accomplishment of the task we had prepared
various set of the questionnaire so as to know the consumer buying behavior and also
how a real estate firm is diversifying itself to the publications. Besides this, the report
consists of the finding that Delhi an NCR region is the major attraction for the real estate
investors and has more scope to grow in terms of property market. The project helped me
to know more about the realty sector and also about the current scenario of the property
market in India.
With the help of questionnaire I was able to carry out the detailed analysis of my
project. The details of the methodology used by me for the accomplishment of the project
is stated as below:-
questionnaire.
SAMPLING METHOD: - Convenience sampling.
Chapter 1
Introduction
in the industry with its Services Since 1983. It is widely recognized as an authority in this
niche segment and is seen as a first choice partner in success by most clients.
With a presence in Delhi, the NCR, across India and abroad, Bricks leverages its wide
network and resource to maximize client benefit.
As a company Bricks urges Active Participation, it is a place that nurtures and
encourages innovation and maintains an environment of easy approachability. This is a
way of ensuring the best practices that have made Bricks what it is today, percolate down
to every level right from the top management to staff at the site.
Our Phenomenal Success is often attributed to the absolutely transparent way in which
we do our business and the stress we lay on clear and open deals with our clients.
Every property developed by Bricks is marked by its Distinct Sense of Design
Superiority and Maximum Utility-They stand apart from the rest.
The drive to excel that underlines every Bricks effort today continues to propel the
company towards new and unexplored areas creating greater value for our clients.
The company is into
Constructions
As a builder Bricks in its long engineering history has undertaken some of the biggest
constructions projects in India and abroad. With ample acquired skills and hands on
experience in construction of hotels, residential and commercial complexes, hospitality
environments and work spaces, it is ideally equipped to rise up to any challenge in this
domain.
Renovations
Renovating an existing property can be a tricky task because it is not merely complex but
also involves a certain human element. Understanding the clients final picture of the
property and the significance from the existing property both from the engineering stance
and the aesthetic stance is where the sky lies. And people at Bricks know just how to rule
earth.
We carefully understand the clients renovation need and then suggest realistic
options before setting about executing it. Supported by seasoned engineers and
technicians, most renovations we do end up exactly the way the client had dreamed of.
Architectural
As market leaders, Bricks is home to some of the most creative architectural brains in the
industry who have proved there mettle in projects that stand out for there architectural
excellence and safety. The evolved design sense, advanced architectural soft wares we
use and the passion of the people behind it all come together to make the distinct Bricks
difference.
Interior Designing
As value additions to the already sterling services that we provide, Bricks offers interior
design solutions that convert empty spaces into functional, stylish and dynamic living or
working environment. The spaces are designed in keeping with your taste and the
functionality.
Safe, sturdy, stylish and maximized utility is how what we want our interiors to be
and we work diligently towards it. We provide comprehensive design solutions so that
you dont have to look elsewhere from your plumbing to color co-ordination to
electrification-we take care of every aspect of your dream design.
10
Introduction
All immovable properties including land, structures on it and other natural resources can
be classified as real estate. It is also referred as realty. All types of residential, commercial
and industrial properties fall under this domain. Real estate involves the purchase, sale
and development of land, residential and non-residential buildings. The major players in
this sector are the realtors, builders, brokers, buyers and sellers. The activities of the real
estate sector encompass the housing and construction sectors also.
With its huge growth potential in the market, real estate sector has emerged as a
major field of business in recent time. The real estate sector in India has assumed
growing importance with the liberalization of the economy. The consequent increase in
the business growth opportunities and migration of the labor force has, in turn, increased
the demand for commercial and housing space, especially rental housing. The
development and expansion in the real estate sector is influenced by the developments in
the retail, hospitality and entertainment (e.g., hotels, resorts, cinema theaters ) industries,
economic services (e.g. hospitals, schools ) and information technology (IT) enabled
services (like call centers ) etc. and vice versa.
The real estate sector is a major employment driver. It is the second largest employer
next only to agriculture. All this is due to the chain of backward and forward linkages that
the sector has with the other sectors of the economy, especially with the housing and
construction sector. About 250 ancillary industries such as cement, steel, brick, timber,
building materials, etc. are totally dependent upon the real estate industry.
The real estate sector in India is flourishing rapidly and widely with a growth rate of
about 30 percent each year. The division is like - about 80 percent of the real estate
development in India has been in the field of residential housing and the remaining 20
percent includes office, shopping malls, entertainment centers, hotels, multiplexes and
hospitals. Indias booming outsourcing business industry and consumption-led growth are
contributing significantly to its real estate growth. The outsourcing business houses
including call centers, technical consultancy services, and medical transcription units and
programming houses constituted around 10 million square feet of real estate growth in
11
India till 2003. In last couple of years the share of commercial sector in the overall real
estate growth has been more prominent.
Considering the advantages of significantly lower cost of operations in India, several
multinational companies across the globe are expressing their willingness and desire to
shift their operations to India. According to a 2003 estimated records, the demand for
office space by the over expanding IT and IT- enabled service sectors in India would be
around 66 million square feet, in the next five years. These multinational companies have
realized the fact that in order to expand and flourish their business, the skilled Indian
work force can be of great use to them. So they need to provide the Indian professionals
with all the facilities of modern life starting from housing to entertainment, so that they
can give their best in the work place and at the same time be happy with their standard of
living. This trend has set off the development of world class entertainment centers and
business centers, across the country, thereby bringing a radical change in the lives of
urban population in India. The growing demand of sky scrapers in all the metropolitan
cities across the country has changed the image Indian skyline. There is an estimated
requirement of 80 million housing units over the next 15 years and 2000 sq. ft. of office
space over the next five years. For the purpose of increasing the investment required to
plug the aforementioned supply deficits, the government, has allowed the Foreign Direct
Investment (FDI) up to 100% in the specified real estate projects including townships,
built-up infrastructure and construction development projects. In December 2007, The
Security and Exchange Board of India (SEBI), which is the domestic stock market
regulator has issued the draft regulations clearing the way for introduction of Real Estate
Investment Trusts in India. This beneficiary step taken by the government is expected to
favorably serve the booming real estate market, by functioning as an alternative source
for satisfying the capital needs of the sector.
The relatively crucial development potential of real estate industry, coupled by the
encouraging and favorable FDI regulations and increasing focus from the private equity
sector has created substantial investment and significant growth opportunities for the real
estate companies.
12
As this springing up realty sector is getting on into a stable and sustainable economic
sector, three key trends, which are likely to shape its future, are emerging:
a) Increased focus on execution risks
b) Increased investments in mixed-use development projects with a view to extract the
maximum synergic benefit
c) Syndication among real estate developers on execution of big- ticket development
projects, i.e., shift from competition to partnership.
The sustainability of growth in the real estate sector is due to its strong and intensive
demand by various other sectors like:
i) Rapid expansion of IT and IT-enabled services and also the business outsourcing
industry including both the knowledge process outsourcing and the clinical testing
outsourcing.
ii) Extensive development and acceptance of shopping malls as one stop destination
for the consumers.
iii) Growing popularity of the special economic zones as preferred destinations for both
the manufacturing as well as service industries.
Government Initiatives
The introduction of many progressive reform measures by the government to unlock the
potential of the sector and also to meet increasing demand level has provided a better
exposure and also helped this sector to emerge as a full fledged grown up player among
all the other sectors in the market. The government has announced a stimulus package
coupled with the Reserve Bank of Indias move has allowed banks to provide special
treatment to the real estate sector, which is likely to impact the real estate in a more
positive way. RBI has decided to extend exceptional concessional treatment to the
commercial real estate which was restructured on 30th June 2009.
13
original investment.
For the single brand retail outlets and for the cash-and-carry through the
automatic route, 51% and 100% of the FDI is allowed respectively.
For the better development of the realty sector, government has provided sops to
the real estate sector as stated in the 2009-10 budgets. The developers of housing
projects (units of 1000-1500 sq. ft.) have been granted a tax holiday on profits
from projects initiated in the financial year 2007-08. Such project must be
completed before March 1, 2012.
Along with this, the Finance minister allocated US $ 207 million to grant a
1% interest subsidy on home loans up to US $ 20,691, provided, the cost of the
home should not be more than US $ 41,382. This subsidy is expected to provide a
better and a further boost and hike to the housing sector.
With the boom in the property market spreading in all directions, the real
estate sector is touching new heights of success. However, this growth in the
realty sector is also due to the various policies adopted by the government to
facilitate investments mainly in the economic and industrial sectors. Also the new
stand adopted by the Indian government regarding the foreign direct investment
(FDI) policies has been encouraged and appreciated by increasingly large amount
of countries to invest in Indian Real Estate and in Indian Properties.
India preempted USA as the second-most favored destination for FDI in the
world. With the changing trends in the current Indian investment scenario, India is
able to attract more than three times foreign investment at US $ 7.96 billion
during the first half of 2005-06 fiscal, as against US $ 2.38 billion during the
14
corresponding 2004-05, making India one of the most prominent player among
the dominant host countries for the FDI in Asia and the Pacific (APAC).
15
Flying high on the wings of booming real estate, property in India has become a dream
for every potential investor looking forward to dig profits. Everybody is eyeing on the
Indian property market for a wide variety of reasons:
Real estate sector in India is witnessing tremendous boom. Its ever growing
economy is on a continuous rise with 8.1% increase witnessed in the last financial
year. The smashing growth in the economy has increased the purchasing power of
the people and creates demand for the real estate sector.
Every year approximately 2 million or more new graduates are produced from the
various Indian Universities, thereby creating demand for about 100 million sq. ft.
space.
Huge amount of dividend is yielded by the real estate investments in India.
Around 70% of the foreign investors are making profits and other 12% are
breaking even.
Apart from IT, ITES and Business Process Outsourcing (BPO), India has shown
its expertise in other sectors also, like, auto-components, chemicals, apparels,
pharmaceuticals and jewellery where it can match the best in the world. This kind
of positive attitude of India is surely going to attract more and more foreign
investors in the nearby future.
The concession provided by the Indian government in the FDI rules has invited more
foreign investors and real estate in India seems to be one of the most lucrative grounds at
present. The revised investors friendly policies have proved to be quite economic and
productive for the investors, apart from this have allowed foreigners to own properties,
and dropped the minimum size for housing estates built with foreign capital to 25 acres
(10 hectares) from 100 acres (40 hectares). With these relaxing and changed policies of
the investment, the overseas firms can now put up the commercial buildings as long as
the projects surpass 50, 000 sq. mt. (538,200 sq. ft.) of floor space.
In the recent time, India has become a potential goldmine for investors all over the world.
With the flourishing and expanding economy and liberalized government policies,
investors from all over the globe are choosing India as their business destination. As
Indian real estate rules the economic vibes of the country, the most important beneficiary
of the recent boom in this sector is the investors. Driven by the positive growth in the real
estate scenario and the Government of Indias decision to allow 100% foreign direct
investment (FDI) under the automatic rule in the construction and development there
has been a significant rise in the number of Indian as well as foreign investors in the
realty sector.
Developers like DLF, Ansal, Omaxe, Ambuja, Unitech, Vatika and Sahara Infrastructure
are among a few that have initiated large scale real estate developments in the residential
sector catering to all segments of the society.
Real estate sector is much more professionally managed with a number of big players
including both developers and corporate, entering into the business. The real estate
market is not the monopolistic market, as there are more and more players entering into
this development game.
In the residential sector, with the increase of disposable incomes and easy availability of
home loans, most builders tries to woo the investors with the lucrative features and the
latest inclusions of premium luxury apartments and condominiums fitted with the most
modern accessories in home luxury.
Apart from the residential segment, the commercial venture includes office spaces,
sprawling malls, multiplexes and retail outlets. As per the past reports, around 200 or
more new malls with a combined retail space of about Rs.2.5crore/ sq. ft. and an
estimated investment of around Rs. 12.5 crore are expected for the upcoming year.
17
whether to invest in the real estate of India now or rather wait for the property prices to
fall.
According to the real estate experts and the investment Gurus, the Indian real estate
sector will definitely going to have a smashing rise in the nearby future. Thus people are
more interested in investing in the real estate of India. According to the market experts,
the Indian real estate sector has a tremendous potential and have a bright future in the
upcoming years.
With the relaxed FDI norms for the Indian real estate market and a tremendous boom in
this sector, has made the property investment in India to be at a safer side. This is also
supported by the fact that the Indian Government has liberalized its foreign direct policies
to attract higher foreign investment.
Its not at all true that there is a sudden rise in the property prices. It could be witnessed
for the last couple of years that the prices of the property in India whether it is residential
or commercial has continued to rise. For example, some of the better developed cities like
Noida and Gurgaon, property prices have increased up to five times within a few years.
Its not the case that only these cities are experiencing an appreciation in the real estate
prices, property prices have been continuously raising across all parts and sectors of the
country. It may be the case that the appreciation in the price hikes in other parts of the
country would not be that much.
According to a recent survey, India stands fourth among the top four Asian destinations
for the foreign direct investment. India being the largest democracy with excellent
democratic governance and transparent property laws attracts more and more people to
invest in the Indian realty market.
Looking to the above facts, it can be concluded that as far as the Indian realty sector is
concerned, it is going only in one direction, that is, upward. And this current scenario will
lead more and more investors to invest in the Indian real estate market.
18
19
diversification is to allow a company or a firm to get into a new line of business which is
totally different from the current or existing business operation.
Basically diversification may be defined as a form of growth strategy. The main aim
of these growth strategies are to have a significant increase in the performance objectives
usually sales or market shares, which are compared beyond the past levels of
performance. Different organizations follow different kinds of growth strategies to attain
their goals. Many organizations go for more than one type of growth strategy. One of the
primary reasons for such is that many of the investors and executives are of the view that,
bigger is better. Growth in the sales is often used as a primary measure to calculate the
performance level. Even the profit level increases or decreases but if the growth curves of
sales is going upward, this satisfies many people. This assumption has often led to
believe that if sales increases, profit will eventually follow it.
If a firm is following a well planned and well designed strategy according to their
goals and aims, it is beneficial for everyone associated with it. Rewards are there if the
firm is pursuing the growth strategy. Based on the sales, managers are provided with
commission. Higher the growth level of sales, higher the amount of commission received.
Basically there are two types of diversification. These are:i) Concentric Diversification
ii) Conglomerate Diversification
effectiveness together than that achieved by the effort of the independent parts. Synergy
can be attained by combining the firms with complementary marketing, financial,
operating and management efforts. For e.g., Financial synergy can be achieved by
combining the firm having the stronger financial resources but limited growth
opportunity with that of the firm having lesser financial resources but maximum growth
opportunity.
22
ii) Horizontal Integration: - It occurs when the firm enters into the new business
either related or unrelated. It may be at the same stage of production as its current
operations.
E.g. AVONS move to market jewel through its door-to door sales force involved
marketing new products through existing channels of distribution. An alternative source
of marketing opted by AVON for its products are selling them through mail order and
through retail shops.
Chapter 2
23
Review of literature
24
25
As an investor, however, you need to have all the facts straight before investing.
And Realty Plus may be the knowledge powerhouse you may be looking for. Read Realty
Plus to know the best spots in India for property investment. Realty Plus is India's first
real estate monthly magazine packed with hundred pages of in-depth reports, surveys,
analyses and expert views on a variety of real estate issues. Learn everything about
properties in India for sale, buying, selling, renting and leasing out. Find also latest hot
property in India, which you can buy at amazing prices.
Property investments in India attract investors from every corner of the globe. But when
it comes to investing, knowledge is power. And, only Realty Plus gives you the
knowledge and confidence to make the right investment decisions in India.
Source:
http://www.realtyplusmag.com/content1.html
Indian real estate companies have picked up really fast in the last few years. As per
recent Indian Real Estate research, the average growth rate returns is 30%, which tells
the tale of this booming industry. Latest Real estate research India has estimated a
revenue increase to $102 billion from $14 billion in the next decade. As per real estate
studies India, there has been an increase in the mass consumption, the trends are
changing the consumption pattern of luxury goods and corporate houses with great
purchasing power are also entering into the retail field of real estate.
The RPG Spencer has the largest presence with Music World, Food World, Health &
Glow in south India. Other major players such as Tatas, Birlas and Reliance are also
following the same line, explaining the rapidly increasing shopping malls and other
retail projects. The need for fun, entertainment and leisure has given rise to
various Indian real estate sites like hotels and multiplexes. As per Real Estate Research
India, the country has not only intellectual workforce, but also cost-effective labour, the
factor which has welcomed hundreds of telecomm, IT and ITES offices to build up in
26
the country.
According to Real estate studies in India, the country is extremely experienced when it
comes to raising and lending capital as compared to other countries. Foreign investors,
brands and realtors have been attracted to invest in the country, keeping in mind its
liberalization policies, free market and open policies of the FDI. The Bombay Stock
Exchange has recently experienced a rising boom, encouraging global players such as
Morgan Stanley to invest $68 million in Indian real estate market. As a conclusion of
real estate studies in India, we can see that as far as real estate is concerned, the bar of
investment has significantly raised. India has immense scope for building
infrastructure, in addition to increase investment returns by 50%. The commercial real
estate yield in India is larger than any other country, thus making it one of the most
popular destinations for real estate investment.
As per real estate studies in India, the lucrative market of real estate in the country are
also attracting interest of the NRIs to buy properties for themselves or for their family
members or to just make an investment and reap benefits. The great demand has
convinced builders to come up with apartments and townships especially designed for
NRIs, endowed with five star luxuries and all the modern amenities. For more
information on real estate studies in India, log on to www.realtyplusmag.com.
Source:
http://www.realtyplusmag.com/content6.html
Komal
Lecturer, Institute of Technology & Management (ITM), Gurgaon
E-mail: komal29m@rediffmail.com
Abstract
The present paper entitled as Prospects and Problems of Real Estate in India is an
attempt to reveal the issues concerned with the real estate investment sector in India.
This paper is concerned with the real estate investment and the emerging trends in the
real estate market. The paper has been divided into three sections. First section talks
about the real estate sector, its type and the features of the real estate market. Apart
from this it deals with the fundamental factors affecting the real value like demand,
supply, property, restrictions to use and site characteristics. Second part explains the
causes for the present real estate boom. It includes the foreign direct investment in the
realty sector and the exposure of the banks to this sector. It also deals with the price
variations in the realty sector with reference to per capita income and the GDP. Lastly,
third part deals in the constraints in real estate investment which includes various laws
to be considered, inflation rate and the barriers in the GDP growth.
Ajay Pandey
Management Trainee, Institute of Management Education, Ghaziabad
Article No: 178 ISSN 0974 9497
Year: August 2009 Volume 3, Issue
Abstract
28
This paper deals with the challenges faced by the present generation due to the current
crises in the worlds financial system. The current global economic recession is neither
the first nor the last to rear its head in the economy. An economic and the financial crises
provide a golden opportunity to the country and its private sectors to review its policies
and programme that are aimed at improving the productivity and the competitiveness. In
this fast and changing global scenario, each and every company is required to constantly
improve and renew their programmes and policies so as they are well prepared to face
any financial and economic crisis. This paper pays more emphasis towards the recent
trends and effects of financial crunches on the real estate sector. Besides this, it also
indicates how the ongoing financial crisis is affecting the construction industry by
reducing its growth, trade and investment flow, employment, remittances. Apart from all
these, the findings reveals that although the financial crunches has a deep impact on the
real estate sector but still it has a great opportunity to overcome all such kind of issues by
analyzing and reviewing its reforms and issues and by providing its best service to its
customers at a lower price than its competitors. Finally, the paper also suggested various
issues that a private sector can follow in order to cope up with such situations and
conditions and by which they can take advantage in their nearby future.
29
Chapter 3
Research Methodology
3.1 Objectives
The broad objective of the project is to study the diversification of a real estate company
to the publications.
i) To study how a real estate company is diversifying itself to the publications.
- potential advertisers
ii) To study general buying behavior of peoples while purchasing a property and
perception of peoples about Delhi and cities of NCR.
30
TheBricks is diversifying its business from Real Estate to Publication and the
company wants to know about the current status of the business of advertisements
in real Estate sector.
The company wants to know about the general buying behavior of peoples while
purchasing a property.
External Factors
1. Price Range
2. Connectivity to Public transport
3. Proximity to workplace
4. Availability of loan
5. Easy Payment Plans
6. Rate of Interest
7. Resale Value
8. Clear title of property
9. Proximity to School
10. Proximity to Hospitals
11. Proximity to Entertainment Centers
PRIMARY METHOD
1) Face to Face interview
2) Questionnaires
32
3) Telephonic Survey
SECONDARY METHOD
1) Magazines on Property
2) Internet sites on Property
3) Internet websites of popular property developers of India
1. Primary Data :
a. Primary Data is collected by using Depth Interviews with the property
dealers, Builders and peoples living in societies in Delhi and NCR region.
b. This helped in finding out the factors for the Research problem.
c. Structured Questionnaire is used as the major tool for primary data
collection.
2. Secondary Data:
Quantitative techniques seeks to quantify the data & typically applies some
form of statistical analysis.
33
Deepali
Peetampura
34
Rohini
Dwarika
Kohat eclave
ii) 70(For Customers)
Area Covered
Kalindi Apartments(Delhi)
Anand Apartments(Ghaziabad)
Sai Apartments(Noida)
Convenience Sampling
Convenience Sampling:
35
Chapter 4
Data Analysis
Valid Percent
35
16.4
16.4
16.4
Advertisements
75
35.2
35.2
51.6
Contact Based
103
48.4
48.4
100.0
213
Table 1
100.0
100.0
Total
36
Percent
Cumulative
Percent
Fig. 1
Inference: Answering the question How do you maintain you sales? about 48.36
percent of the respondents answered that they maintain their sales on contact bases
whereas about 35.21 percent of the respondents said that they advertise about their
company and the properties available with them for sale. Now the company can target
these 35.21 percent of the respondents for advertisement in their magazine.
Which medium will you prefer for advertisement?
Frequency
Valid
Valid Percent
Cumulative Percent
Magazine
58
27.2
27.2
27.2
Newspaper
93
43.7
43.7
70.9
Internet
47
22.1
22.1
93.0
TV/Radio
15
7.0
7.0
100.0
213
100.0
100.0
Total
37
Percent
Table 2
Fig.2
Inference: The Company is diversifying itself into magazine publication whereas the
advertisements in magazine will also be available on companys website so in this way a
real estate agent or builder can advertise his property through magazine as well as
through internet.
The answer to the question which medium do you prefer for advertisement? 27.23
percent of the total respondent said that they prefer magazine whereas 22.07 percent of
the people said that they prefer internet for advertisement. So about 50 percent of the total
respondents said that they will go for magazine or internet for the advertisement of their
property.
Now The Bricks is going to advertise through magazine as well as through internet so
the company can target these 50 percent of the respondents for advertisements.
38
Table 3
Do you want to expand your business from current state?
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
yes
189
88.7
88.7
88.7
no
24
11.3
11.3
100.0
213
100.0
100.0
Total
Fig. 3
Inference: On asking the question weather the property dealers and builders wants to
expand their business from current level, 88.73 percent of the people responded that they
want to expand their business from current level whereas only 11.27 percent of the people
said that they are satisfied with their current level of business and they dont want to
further expand their business.
39
Table 4
40
Do you want to expand your business from current state * which medium will you prefer for expansion
your business?
Cross tabulation
which medium will you prefer for
expansion of your business
Relation Openin
ship
g new Advertise Collaborat
building offices ments
ions
do
Yes
you
want
to
expa
nd
% of Total
your
busi
Count
No
ness
from
curre
nt
state
Total
16
55
107
11
8.5%
29.1%
56.6%
5.8%
100
100.0% 100.0%
99.1%
100.0%
99
99
8.4%
28.9%
56.3%
5.8%
.0%
.0%
100.0%
.0%
.0%
.0%
.9%
.0%
% of Total
.0%
.0%
.5%
.0%
16
55
108
11
8.4%
28.9%
56.8%
5.8%
100
100.0% 100.0%
100.0%
100.0%
100
56.8%
5.8%
100
Count
Count
% within do you want to expand your business
from current state
% within which medium will you prefer for
expansion of your business
% of Total
8.4%
28.9%
Inference: The result for the crosstab between Do you want to expand you business?
and which medium will you prefer for expansion of your business? shows that out of
88.73 percent people who wants to expand their business from current level 56.3 percent
of the respondents wants to go for advertisement for the expansion of their business. It
shows that there is a good number of property dealers and builders who wants to
advertise their business through advertisements.
41
Tot
100
Table 5
How do you see real estate sector in terms of opportunities?
Frequency
Valid
very good
Percent
Cumulative Percent
115
54.0
54.0
54.0
good
64
30.0
30.0
84.0
average
26
12.2
12.2
96.2
Poor
3.8
3.8
100.0
Total
213
100.0
100.0
Fig. 4
42
Valid Percent
Inference: Asking the question How do you see current status of Real Estate Sector in
terms of opportunities? 53.99 percent of the total respondents said that the sector is
really good and there are lots of opportunities of growth in this sector. 30.05 percent of
the people responded the sector as good, 12.21 percent of the respondents said that its is
average whereas only 3.76 percent of the respondents considers it as poor in terms of
opportunities, which shows that the sector is on a boom in terms of opportunities
Table 6
43
Percent
Valid Percent
Cumulative Percent
yes
44
20.7
20.7
20.7
no
169
79.3
79.3
100.0
Total
213
100.0
100.0
Fig. 5
Inference: The response to the question on given chance will you go for collaboration
with other firms nearly80 percent of the total respondents answered as NO where as
only 19.72 percent of the total respondents answered that YES that can work in
collaboration with other firms. The Bar charts above shows the result shows that the Real
Estate sector is a highly unorganized sector where different property dealers and builders
do not want to work in collaboration with each other.
44
45
Percent
Valid Percent
Cumulative Percent
4.3
4.3
4.3
Location
27
38.6
38.6
42.9
Affordability
40
57.1
57.1
100.0
Total
70
100.0
100.0
Fig. 6
Inference: While purchasing a property the factor that effects buying decision of a
customer the most is Affordability 56.34 percent of the total respondent said that they
look for affordability firs while purchasing a property. After affordability the second most
prominent factor is location of the property, about 38.03 percent of total respondents
responded in favor of Location.
Table 8
46
Descriptive Statistics
N
70 6.1000
.68419
70 2.2000
.80937
70 2.9429
.84931
70 5.1857
.70798
70 2.3286
.63065
70 4.1429
.85611
70 5.6714
.92817
70
Inference: On asking to rate the factors affecting the choice of a society to purchase the
property Price Range were the first and foremost factor that effects the decision. On a
scale of 1-7 the mean for this factor comes out to be 6.1 which is very high. This shows
that how price range effects the decision while purchasing a property in a society.
The second factor that affects the most is Infrastructure of the property and the ambience
of the society.
Very close to Infrastructure factor is Availability of loan for the purchase of that property.
This shows that people to a large extent believes in availing loan for the purchase of their
property and hence the factor Availability of loan affects the buying decision of a person
to large extent.
47
Fig. 7
Inference: Here opinion of the people about Delhi and various cities of NCR were taken
on various attributes like Location, Business Opportunities, Law and Order, Quality of
Living, Infrastructural Development and the following inference can be drawn.
Location: Delhi was considered to be the best place to live as far as location is
considered. Whereas giving it a competition next to Delhi is Noida. It is chosen as the
best location to live in entire NCR. Noida is located close to the Capital of India and is
also very closely located to Indirapuram, another upcoming city.
Business Opportunities: As far as Business opportunities are concern Delhi is again at
number but according to the opinion of the respondents all the NCR cities including
Ghaziabad is giving it a good competition. So in terms of Business Opportunities both
Delhi as well as the cities of NCR has scored well.
Quality of living: Delhi is again the first choice of the people on the parameter of Quality
of Living following it is Noida.
Law and Order: considering law and order as the parameter Delhi and all the taken cities
in NCR region lies almost at the same level with Delhi leading again and Noda just
following the lead.
Infrastructural Development: Delhi is again top in the list as far as Infrastructural
development is concerned whereas on second place in the list is greater Noida.
48
Conclusion
There is a good portion of property dealers and builders who wants to advertise
themselves or property available with them either through magazine or through
internet, company can target these property dealers and builders as their potential
advertisers.
The small companies in major dont want to work in collaboration.
The major external factors which people consider while purchasing the property
are price, availability of loan and proximity to workplace.
In Peoples perception Delhi is considered to be the best place on all the
parameters and Noida is the second choice.
Recommendations
49
Apart from the real estate agents and dealers, the company should approach
architects and interior designers also.
The company has limited its research to the Delhi and NCR region only, it should
go for other regions also.
A follow up should be there for the dealers to whom the contact in first meeting is
not successful.
Limitations
50
Study was restricted to some parts of Delhi and NCR region only.
Study was restricted to property dealers and builders only whereas we could
consider architects and Interior designers also.
Analyzing the perception of people about different cities of NCR was little
difficult as some respondents didnt have much knowledge about the other cities
in NCR
Denial of many Property Dealers and Builders to provide the information about
the properties they deal in.
References
www.makaan.com
51
www.magicbricks.com
www.ansalspropertiesltd.com
www.eros-group.com
www.eldecogroup.com
www.omaxe.com
www.parsvnath.com
www.ashianahousing.com
www.gurgaonproperties.net
www.realestatencr.com
www.gurgaonrealestate.com
www.estatedeveloper.com
Annexure 1
Questionnaire
52
Rental
No
What is the most important factor that affect your buying decision while purchasing
property in this apartment?
Brand name of developer
Location
Affordability
To what extent do the following factors influence your choice of a housing complex(Rate
on a scale of 1-7)?
Not at all
Price range
_____/_____/_____/_____/______/_____/______
Connectivity to
Public transport
_____/_____/_____/_____/______/_____/______
Proximity to
Workplace
_____/_____/_____/_____/______/_____/______
Availability of
loan
_____/_____/_____/_____/______/_____/______
Resale value
_____/_____/_____/_____/______/_____/______
Clear title of
Property
_____/_____/_____/_____/______/_____/______
1
2
3
4
5
6
7
53
Gurgaon
Noida
Greater Noida
Location
Business Hub
Quality of Living
Infrastructural
Development
Annexure 2
54
Ghaziabad
Delhi
Questionnaire
AMITY BUSINESS SCHOOL
Q. 1. Which category you best fit in:
1 Financer
2 Agent / dealer
3 Registered company
4 Builder /constructor
Civil contractor
No
2 Contact
3 Advertisement
4 Area specific
Contacts
No
2 Opening new
Offices
4 Channel Partners
3 Advertisements
1
55
No use
Most important
Q.5 what do you feel about current status of real-state in terms of opportunities?
1 Very good
2 Average
3 Good
4 Poor
Q.6 Which medium will you prefer for advertisement of your property?
1 Magazine
2 Newspaper
3 TV/Radio
3 Internet
Q.7 Given a chance will you go for collaboration with other firms?
Yes
No
Q. 8 any suggestions:_________________________________________________________
_________________________________________________________
Personal details:Name & Organization
Address:
...........................
Contact No:.
Date: ____/____/2010
56
E- mail: ...