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Real Estate Project PDF
Real Estate Project PDF
buying a house
SUMMER PROJECT
2009
Submitted for the partial fulfillment of the requirement for the award
Of
POST GRADUATE DIPLOMA IN MANAGEMENT
SUBMITTED BY
ABHISHEK KUMAR RAI
Roll. No. - 8002
Department of Management
INSTITUTE OF MANAGEMENT EDUCATION,
SHAHIBABAD
DECLARATION
I hereby declare that the project report titled Understanding the Customers
perception and Expectations while buying a house submitted for the Post
Graduate Diploma in Management is my original work and the project report has
not formed the basis for award of any degree, diploma, associate ship or other
similar titles.
Date: 9/7/09
Place: Sahibabad.
Submitted by:
Abhishek Kumar Rai
DEPARTMENT OF MANAGEMENT
This is to certify that Abhishek Kumar Rai has worked on the project entitled
Analysis of the consumers perception and expectations while buying a house for
the partial fulfillment of the requirements of PGDM (batch 2008-10) for period of
45 days from 19th May 2009 to 3rd July 2009. This bonafied work has been done by
him under our supervision.
ACKNOWLEDGEMENT
I take this opportunity to express my sense of gratitude to all those who helped me in completing
this project. The successful task would be incomplete without the mention of the people whose
constant guidance and encouragement crown all efforts with success.
First of all I would like to convey my thanks to Dr. SIDDHARTH VARMA (Internal Guide,
Faculty IME) for his constant suggestions which have resulted in successful completion of
project
I would like to express my sincere gratitude to Mr. SAMI KHAN (C.O.O.) for giving me the
opportunity to work and learn with APEKSHA GROUP. I would also like to thank Mr. UDYAN
GIRI (Manager) and Mr. AJAY RAJ SINGH (External Guide, Deputy Manager) who extended
to me all the support and cooperation I required during working in the field in various areas from
time to time.
I would also like to extend my heartiest thanks to Ms Anjali Chauhan (Deputy Manager), Mr.
Subham Rastogi (Deputy Manager), Ms Pallvi Datta (Deputy Manager), Ms Sudeep Khurana
(Deputy Manager) ,without their support I could not complete this project.
The individual and personal efforts of everyone concerned were memorable and I am once again
sincerely thankful to the whole team of APEKSHA GROUP and IME for their cooperation and
providing me the required information and resources and helping me throughout for the
successful completion of this project.
TABLE OF CONTENTS
CHAPTER 1:
PAGE NO.
CHAPTER 2:
2.0) INTRODUCTION TO THE COMPANY
23
23
25
25
26
26
27
27
CHAPTR 3:
3.0) RESEARCH METHODLOGY
28
28
28
29
30
30
CHAPTER 4:
4.0) DATA ANALYSIS AND INTERPRETATION
31
CHAPTER 5:
FINDING AND CONCLUSION
5.1) FINDINGS
49
5.2) CONCLUSIONS
50
CHAPTER 6:
6.0) RECOMMENDATION
51
CHAPTER 7:
7.0) LIMITATIONS
52
BIBLOGRAPHY
53
8.0) QUESTIONNAIRE
54
EXECUTIVE SUMMARY
I started my project on 20th may 2009 in Apeksha Group (A Real Estate Consultancy
Company) and was asked to study The consumers perception and Expectations while he
goes to buy a house.
I was asked to collect the information related to real estate and the information needed to
buy or search property from the educated people who can really have experience of
purchasing property or want to buy house or property. For that I targeted to meet people
who were doing jobs at top levels in various organizations. I collected data from Delhi
and NCR region.
First of all I prepared the questionnaire according to the job given to me. The objectives
of my questionnaire are as follows
Finding the consumers perception while he goes to buy a house.
Finding the expectations of a consumer when he goes to buy a house.
Finding all the solution to their perceptions and expectations.
A secondary objective was to gather information about what customers want from real
estate developer and Regulatory body working in Real estate sector.
I started my survey from PRAGATI MAIDAN New Delhi. I collected the data of 300
people which has helped me to find out their perception and expectations. Few of them
are as follows People do not have a well defined expectation from the Developers.
People are not aware about the process of buying a house /property.
People are not aware of the legal and technical documents which they shouldcheck while
buying or searching house/property.
Whatever information builder provide to customer in there broachers are condition based
and customer does not understand it in same way.
Builders not selling their project directly to END User.
People do not know much about the Real Estate sector.
The future of the real estate sector in India is going to be guided by two important
factors, namely suitable amendments in the Foreign Direct Investment (FDI)
guidelines in townships, housing, built-up infrastructure and construction
development projects as well as abolition of Service Tax on the construction
industry especially the housing sector. Conversely, if the abolition per se is not
possible then drastic modifications in the existing Service Tax norms is the need of
the hour. This Sector is already overburdened with taxes; any further imposition of
taxes in any form would adversely affect the growth of this sector of the economy.
The importance of the Real Estate sector, as an engine of the nations growth, can
be gauged from the fact that it is the second largest employer next only to
agriculture and its size is close to US $ 12 billion and grows at about 30% per
annum. Five per cent of the countrys GDP is contributed by the housing sector. In
the next three or four or five years this contribution to the GDP is expected to rise
to 6%. The Real Estate Industry has significant linkages with several other sectors
of the economy and over 250 associated industries. One Rupee invested in this
sector results in 78 paise being added to the GDP of the State. A unit increase in
expenditure in this sector has a multiplier effect and the capacity to generate
income as high as five times. If the economy grows at the rate of 10% the housing
sector has the capacity to grow at 14% and generate 3.2 million new jobs over a
decade.
Furthermore, this sector has witnessed a spurt in demand not just in residential
property but also in commercial property. A fast growing area is the I.T. and I.T.enabled services along with the BPO boom. Estimates worked out show that 42
million sq. ft. of space will be required every year till 2008, only in I.T. and I.T.enabled services especially in the cities like Bangalore, Chennai, Hyderabad and
Pune, which is also now gradually shifting to North India.
To achieve the much desired growth and development in the Real Estate Segment,
FICCI would like to submit the following 10 points for consideration:
Infrastructure Status to Housing: Infrastructure status should be provided to
housing sector. This will enable easier access to low cost institutional funds as also
allow the sector to tap long term funds.
Real Estate Mutual Funds: The Government should consider setting up of Real
Estate Mutual Funds/ Investment Trusts to provide the much needed support to the
cash starved housing sector, similar to the structures adopted for Estate Mutual
Funds/ Investment Trusts in developed real estate markets such as, USA,
Singapore. Hong Kong, etc. Real Estate Mutual Funds/ Investment Trusts would
be an efficient mode for providing equity financing as against debt, which is
currently the norm for financing real estate developments in India.
Stamp Duty: In some States the Stamp Duty is as high as 14- 15 % of the value of
the transaction. Astonishingly in the Indian context, not only are the rates high, but
also the levy of Stamp Duty is applicable in every subsequent transaction, be it the
initial transfer purchase of land or on further sale of the same land after
development or any other succeeding transaction. Opportunely some states have
brought the Stamp Duty down to between 6-8 %, this should ideally be further
brought down to 2-3 % and made uniformly applicable across all states. However,
if the above suggestion is not acceptable then if stamp duty has already been paid
on one transaction, there should be a mechanism in the law, whereby there is a
provision for concession or a system of credit for any subsequent transactions. This
would avoid the resultant cascading effect of Stamp Duty, thereby reducing the
cost of a property. The concept of credit for taxes paid on subsequent transactions
already exists in other statutes such as CENVAT, VAT, Minimum Alternate Tax
(MAT), etc.
Public Private Partnership: There is a need to evolve a regulatory framework
that encourages participation of the private sector in bringing technical and
managerial expertise in formulating and delivery of basic amenities like water,
sanitation, sewerage, transport and electricity.
Archaic Laws: Availability of land for housing projects has been constrained by a
variety of laws like the Rent Control Act and Urban Land Ceiling and Regulation
Act, which must be repealed in all the States. A necessary legal and policy
framework has to be put in place to restrict growth of slums and at the same time to
re-develop the slums into hygienic and livable.
Foreclosure Laws: The existing foreclosure laws are cumbersome as well as time
consuming and make it practically impossible for Housing Finance Institutions
(HFIs) to repossess a dwelling unit financed. HFIs are reluctant to take risk and
continue to land primarily on salaried urban borrowers. Amendment of (National
Housing Board) NHB Act has already been initiated. The implementation process
needs to be expedited to bring in the required changes.
Environmental Impact Assessment Notification: The notification specifies that
no construction activity to be taken up, inspite of the approval of plans by the
Competent Authority, till the environmental clearance has been sought. In cases
where approval has already been granted it is suggested that construction activities
should be allowed. In the intervening period the builder / developer can obtain the
environmental clearance certificate. In the case of the environmental clearance
certificate being denied then appropriate action if necessary and warranted can be
taken against the developer / builder and builder be given time to get clearance
before he applies for completion certificate, otherwise the completion certificate
will not be given Furthermore, in the case of future proposed projects the
environmental clearances should be taken by the States themselves or by the
planning bodies and not b individual builders.
Land Acquisition: The Land Acquisition Act of 1894, still, to a large extent,
governs the procurement of raw land. With the changing investment scenario it has
become necessary to review the existing law, in order to ensure that private
developers and colonizers procure the land directly from farmers and land owners
without putting undue financial burden on State/ Central Governments on land
acquisition for public purposes. Today, a builder is governed by Agriculture Land
Ceiling Act even after the land have been urbanized in the zonal plans / master
plans. This makes builders to create several companies in order to circumvent the
archaic laws. It is submitted that once the land has been urbanized and
incorporated in the master plan, then Agriculture Land Ceiling Act should not
apply and builders should be permitted to acquire lands as per their requirements,
for the development of townships.
Foreign Direct Investment (FDI): Suitable modifications in the FDI guidelines
are required, particularly in repatriation of funds, clarification on the basic
definition of built-up area, streamlining of Clearance procedures as well as the
opening up of the Retail Segment to FDI. This aspect has been discussed in detail
in Section II of this paper.
Service Tax: Service tax in relation to construction of residential complexes
having more than 12 houses have been proposed to be introduced as a new service.
However, no rationale has been provided for exclusion of services in relation to
construction of residential bungalows, which may not form part of residential
complexes.
National Commission observed that it is unfair trade practice on the part of the
builder to collect money from the prospective buyers without obtaining the
required permissions such as zoning plan, layout plan etc. It was further held that it
is the duty of the builder to obtain the requisite permissions or sanctions for
construction etc in the first instance, and thereafter recover the consideration
money from the purchaser of the flat/buildings. The National Commission further
observed that if there is any express promise that the premises would be delivered
within the stipulated time and if it is not done so, escalation cost is required to be
borne by the builder.
In another matter titled as Veena Khanna Vs Ansal Properties and Industries
limited, reported as III (2007) CPJ 185(NC), the National Commission set aside an
order of the State Commission, wherein the builder was directed to refund the
money to the consumer along with the interest @ 13%. In the alternative, it was
directed that if the builder chooses to hand over the possession of the flat, the order
of refund with interest will not come in operation. The builder taking advantage of
the order refunded the money, because of the rise in the prices of the immovable
properties. The National Commission observed that refund of money with interest
at bank rate does not mean that the complainant is adequately compensated for
delay in construction of flat by the builder and not delivering the possession of the
flat. It was noted that because of the delay in construction and delay in deciding the
matter it is practically impossible for a consumer to purchase a flat at the market
price.
It was held that it was the duty of the state commission to direct the builder to
deliver the possession of the same flat or flat of similar size to the consumer with
compensation for delay in delivering the possession. Or in any circumstances,
adequate compensation ought to have been given so that the complaint could
purchase a new flat of the same size at the prevailing market rate. Mere payment of
interest is not an adequate compensation.
Complete information of how to buy a home or property:
1. How do I buy a house?
Be an informed consumer; buying a house is one of the most complicated and
expensive purchases you will ever make. As with most other things, you get what
you pay for. Look at and compare many houses in different areas. Once you have
seen something you like, assess its location. How far will you have to commute?
What is the traffic like? How does the neighborhood look? What services are
available? How good are the local schools? Will you be able to get your children
into them? What is the crime rate in the area, and what types of crimes have
occurred in the past couple of years? Visit the home on multiple occasions and at
different times of the day. Remember: location, location, location. It's one of the
biggest factors in setting the price of the home.
Before you make a written offer, know exactly what you are buying and what
the costs will be after you own it. For example, in addition to the monthly
principal and interest payments that you will have to finance the purchase of
your home, you will need to budget for utility bills, property taxes, and
insurance and maintenance costs. If you buy a home that has a homeowner's
association, you will also have to pay association fees. Some homes have
special assessments in addition to the regular property taxes. Make sure that
you ask the seller for copies of the past years" bills for these services, and that
you inquire as to whether there are any assessments scheduled to be placed on
the property in the future.
Also, check the condition of the house and any appliances, window
coverings and other items that you want included in the sale. Consider
purchasing a home warranty. For a minimum fee, the home warranty
company will insure that the house and the appliances are in working
condition. Many companies will provide coverage for washers, dryers,
pools and pool equipment, air conditioning, and some roof repairs. Your
agent or escrow holder can provide you with information on these policies.
2. Do I need a real estate agent or an attorney?
An experienced local real estate agent can assist you in finding a home that
meets your particular needs. He or she will also have information about the
home and area that an outsider would never find just by looking at the
particular home. Most homes are listed for sale by a real estate broker who
is referred to as the seller's agent. The seller's agent represents the seller.
The agent who helps you find the home is called the buyer's agent. Usually
you will not have to pay your agent a fee for the time and energy he or she
spends in finding the home and assisting you in closing the sale. The
buyer's agent's fee will be paid by the seller when you complete the
purchase of the home.
Your real estate agent will also assist you in negotiating the price, learning
about the community, obtaining a loan, inspecting the home, and in closing
the escrow. In some instances, a real estate agent can represent both the
buyer and the seller. This is referred to as a dual agency. This must be
disclosed to you before you make an offer. It is advised that you proceed
carefully in this situation, since your agent will be working for both the
seller and you at the same time.
If you are not sure that you understand all of your rights and
responsibilities, it is advisable to see an attorney who is experienced in the
purchase of residential real estate. An attorney can help you with legal and
tax questions that come up during the purchase of the home, and can assist
you in reviewing all of the documents and reports that will be provided to
you in the process of purchasing the home. For more information on how
to locate a qualified attorney, order a free copy of the State Bar pamphlet
How Can I Find and Hire the Right Lawyer? To find out how to order a
free copy of this pamphlet and other State Bar consumer education
pamphlets, call 415-538-2280. Or visit the State Bar's web
site(www.calbar.ca.gov) where you'll find the bar's consumer education
pamphlets, as well as information on ordering them. The pamphlets also
can be ordered in bulk.
3. What information must the seller provide us?
In most cases, when you are preparing to buy a home, the seller must
provide you with a Real Estate Transfer Disclosure Statement. This is a
pre-printed form that lists many features or conditions about the home, the
land, and the area where the home is located. The seller must list on this
form any possible problems he or she is aware of that might affect your
willingness to purchase the home. This includes, for example, easements,
rights of others to control how you use the property, environmental
problems, nonfunctioning equipment, zoning and building violations, and
special assessments. The seller's agent must visually inspect the home and
report all facts that he or she feels might affect your decision to buy this
property. If you want information that is not covered in the Real Estate
Disclosure Statement or additional information that is disclosed, put your
questions in writing and ask the seller to respond in writing.
You should review the Disclosure Statement immediately and carefully. In
most instances, you will have a limited period of time to decide whether
you wish to proceed with the purchase despite the stated disclosures.
Depending upon your purchase agreement, some sellers will require a
written acceptance of the conditions contained in the statement. Other
sellers will consider your silence as acceptance of all of the conditions
contained in the Disclosure Statement.
If you buy a condominium, the seller must give you copies of the
you may have to increase your deposit or increase your offer, especially if
there are multiple offers on the home.
The deposit is usually deposited in escrow upon the acceptance of your
offer. You submit a written offer on a form known as the Residential
Purchase Agreement and Receipt for Deposit. This form sets out the terms
upon which you are willing to purchase the property. The price you offer
on a home will, in most cases, be less than the amount you will need to
purchase the home. There will be expenses incurred in purchasing the
home that will have to be paid by either the buyer or the seller. These
include, for example, title reports, document preparation, recording fees,
local taxes, fees for inspections, escrow fees, homeowner's insurance, and
notary fees. Ask your agent or escrow officer to provide you with an
estimated closing statement. This will give you an idea of some of the
additional costs you will incur in purchasing your home. You do not want
any surprises.
6. What is a Residential Purchase Agreement and Receipt for Deposit?
This agreement is an offer which, upon acceptance by the seller, results in a
binding contract. It should cover all of the important terms of the sale. For
example, it should include a complete description of the property and of
any personal property that will be sold with the house, such as window
coverings, kitchen appliances, washers and dryers. It should state the exact
purchase price, including the amount of your initial deposit, any increases
in that deposit, the amount you will pay in cash, check or wire transfer, and
the amount you will need to finance to complete the purchase price. This
agreement should also list any conditions that may allow you to back out of
the contract. You will want a condition that allows you to cancel the
contract if you cannot obtain a loan on favorable terms or if the inspections
reveal substantial defects or problems with the home. You may also need a
condition that allows you to cancel the sale if you cannot sell your current
home. Please understand, however, the more conditions you have, the less
review all of the seller's loan documents and make approval by the lender a
condition to your offer.
Most home loans that are available to Californians offer one of two interest
rate structures. A fixed rate loan offers a set interest rate, so that your
monthly payment never changes. Some fixed rate loans are federally
insured or guaranteed, such as a Veteran's loan or an FHA loan. These
loans usually have a lower interest rate and require smaller down
payments. For more information on these loans, get in touch with a local
office of the California Department of Veterans Affairs, the U.S. Veterans
Administration or the U.S. Department of Housing and Urban
Development (HUD).
Another type of loan that is available is an adjustable rate mortgage loan,
sometimes called an ARM. An ARM is a mortgage loan which provides
for adjustment of its interest rate as market rate interest rates change. The
ARM's interest rate is tied to an index that reflects changes in the market
rates of interest. Some indexes used are the Cost-of-Funds Index published
by the Office of Thrift Supervision, and the Federal Reserve Discount Rate.
These loans usually have interest rates that are lower than the fixed rate
loan interest. ARMs can be complicated. Make sure that you understand all
of the terms of these loans before you agree to accept one.
Occasionally, new mortgage plans become available that are intended to
meet specific needs of a community. These include loans for first-time
homebuyers, and loans for teachers. Check with your local consumer
affairs office and housing departments for up-to-date information on these
types of loans.
10. What occurs when I "close" on a home?
For the protection of the seller and the buyer, a person or company that has
no connection with you or the seller holds the money and papers involved
in the purchase. This procedure is called escrow. The escrow holder's job is
to make sure that all of the terms and conditions of the agreement are met.
He or she will also coordinate all of the activities of the broker, the lender
and the title insurance company. The escrow holder will deliver the deed to
the county for recording when it can pay the seller the money. Escrow
services can be provided by title companies, banks, savings and loan
associations, independent escrow companies, realtors or lawyers.
The escrow holder does not act as a mediator, a lawyer or an advisor. The
escrow holder is required by law to remain neutral. Its only job is to carry
out the terms of the escrow instructions. In Southern California, escrow
instructions are signed when the escrow is opened. They are modified
throughout the course of the escrow as the agreement between the buyer
and seller change. In Northern California, escrow instructions are executed
just prior to the close of escrow. These instructions should be clear and
certain as to the intentions of the parties and the duties of the escrow
holder. Make sure your Purchase Agreement does not conflict with your
escrow instructions. If they do conflict, the escrow instructions may be
considered your final agreement as to the terms of the purchase. If you are
uncertain as to what the instructions say, discuss them with your agent,
your lawyer, and the escrow holder.
After the close of escrow, the escrow holder will provide you with
a Settlement Statement. This document will show you, as the buyer, all of
the costs incurred by you in purchasing the property. You should review
this document carefully and save this statement for later. Many of these
costs may be deductible from either your state or federal taxes. If you have
any questions or concerns about the charges you incurred, contact the
escrow holder immediately and ask for an explanation.
11. How should the title to the home be held?
Prior to the close of escrow, the escrow holder will ask you how you wish
to hold title to your new home. How someone holds title will affect what
will happen to the property in the event of the death of one of the owners. It
also will affect whether certain taxes will be incurred or whether a probate
of the estate will be necessary. You should discuss your options with a tax
specialist and your agent before you make your selection.
You can hold title to the home by yourself, as separate property, with your
spouse, as community property, or with your spouse or a third party, as
joint tenants or tenants in common. You can also hold title to the property
in a family trust. For more information on the different forms of ownership,
see the State Bar pamphlet Do I Need Estate Planning? To obtain a
complimentary copy of this pamphlet, mail a self-addressed envelope (with
55 cents in postage) to the Estate Planning, Trust and Probate Law Section,
The State Bar of California, 180 Howard Street, San Francisco, California,
94105-1639. For information on ordering multiple copies, call 1-888-4607364.
12. Do I need title insurance?
Title insurance is necessary for your protection when you buy a home. It is,
however, not a guarantee that problems will not arise after the close of
escrow. When you make an offer to buy a home, you, as the buyer, have
the right to choose the title company. This decision should be based on the
local office's expertise, and the company's record for fairly handling claims
under its policies. You should discuss these issues with your agent.
Once you have chosen a company, you should make one of the conditions
of the close of escrow clear title to the property. "Clear title" means that
when the sale to you is completed, the title to the property will be free from
liens, judgments and other claims that you have not agreed to accept. You
should also discuss with your agent the need for a survey of the property
and title insurance coverage for boundary line disputes. In many instances,
especially in rural areas, boundary lines are not where they should be. A
survey and survey coverage can help eliminate future disputes with your
new neighbors.
Before a title company issues an insurance policy, it will make an
investigation to find out if anyone besides the seller claims to own the
property. It will also search the public records for claims against the
property. The title company will provide you with a report, called
preliminary report. You should carefully review this report to determine
if it describes all of the property you are interested in buying. You should
also review this report and determine what items you are willing to accept
when you purchase the property and what items you wish removed or taken
care of as a condition of the close of escrow. If you are uncertain as to what
the report says, you should discuss the matter with your agent, the escrow
holder and/or your attorney.
There are different kinds of title insurance available. Often the difference
in cost for the better policies is nominal. "Basic" or "Standard" coverage is,
in most instances, not the best policy available. For an additional one-time
cost or no charge at all, you can obtain protection for losses resulting from
illegal construction, zoning violations, unrecorded liens, prescriptive
easement claims, and post policy forgeries. Be aware that different
companies charge different rates. Discuss with your agent and the escrow
holder what policies are available in your area and the differences in prices
on each of the policies.
13. Congratulations!
Whether you are purchasing a home for the first time or for the fourth time,
the day of closing should be a cause for celebration. And since a portion of
your purchase price is paying for the agents and the escrow holder's
expertise, utilize their services throughout the process leading up to the day
of closing. Ask questions; ask for an explanation of any item you do not
understand. Request copies of any documents you do not understand; keep
copies of all documents relating to the purchase of your home. And, if
necessary, seek advice from a qualified real estate attorney or tax advisor.
Asking questions during the purchase of your home will help insure that
you and your family will enjoy your new home for many years to come.
BOARD OF ADVISORS
Mr. Rajeev Rai
B.Tech (Civil Engg.) ,IIT Roorkee
M.Tech.(Structural Engg.) , IIT Delhi
Member, expert comm., for retrofitting of buildings against earthquake
Indian Building Congress
Mr. Sami Khan
COO & Consultant
MBA Marketing & Finance
On penal of different banks as a Financial Consultant
Mr. Satsimar Singh
M.sc. Management & Marketing
From London , UK
Mr. Praveen Singh
HR in International Business
Marketing consultancy
Project management
Finance advisor and Project financing
Engineering and Design consultant
Media advisor services
Selling/ under writing of new projects
3. RESEARCH METHODOLOGY:
What is research?
Research can be defined as a scientific and systematic search for pertaining
information on a specific topic. We define research as the systematic
and tabulation techniques. The data sheets mentioned here are attached in
the annexure of the report.
4.DATA ANANLYSIS AND INTERPRETATION :Q) The professions of the people I met..
profession type
Vali
d
private
business
govt.
owner
Total
Total
Frequency
258
9
31
1
1
300
300
Percent
86.0
3.0
10.3
.3
.3
100.0
100.0
Valid
Percent
86.0
3.0
10.3
.3
.3
100.0
Cumulativ
e Percent
86.3
89.3
99.7
.3
100.0
ow ner
govt.
business
private
During the survey I visited many Government and Private Offices to meet with
people who can give me proper response of my questionnaire. I met with total 300
people out of which 10.3% (31) people are doing Government services , 86 %(258)
people are doing Private services and 3 % (9) people are doing business.
My target was to meet service class people because they are educated and they are
having capability of buying house or any experience of buying house or any
property.
300
200
Count
100
0
20-25
25-30
30-40
41-50
age of a person
I met with people having different age. But generally I choose to met people
having age more than 30 years .Because they have bought house or they are in
process of buying any house. The people I have met most people belong to age
group of 30 to 40 years and having 71% and people belonging to age group 25 to
30 years having (least) 5.7%.People are in age group 41-50 years and more than 40
years are having 22%.
Q: How much are you satisfied from real estate marketing information
provided by real estate companies?
Frequency
Valid
Valid
Percent
Percent
Cumulative
Percent
highly
satisfied
satisfied
neutral
dis-satisfied
highly
dis-satisfied
1.0
1.0
1.3
93
64
126
31.0
21.3
42.0
31.0
21.3
42.0
32.3
53.7
95.7
13
4.3
4.3
100.0
Total
1
300
300
.3
100.0
100.0
.3
100.0
Total
highly dis-satisfied
.3
highly satisfied
satisfied
dis-satisfied
neutral
With the help of above pie chat and table it is clear that majority (42%) of people
are dissatisfied and very less proportion (1%) of people are highly-satisfied with
the marketing information provided by the real estate companies . Many people
who are satisfied with the marketing information provided by developer ,they were
saying that Real estate companies does not want to share each marketing detail but
also some real estate companies does not want to hide any marketing detail if
customers asking about them. 21.3% people are neutral, 31 % people are satisfied
and 4.3 % people are strongly dissatisfied from the marketing details provided by
the real estate companies. The reason of this strange result in simple languages is
as follows Builders do not give complete marketing information in their broacher.
Marketing information provided by real estate developers is condition based.
In the marketing information broacher, developers do not share the negative
side of project.
The paper work is a bit different from that of the actual work.
We can make most of the customers satisfied by
1. Creating awareness about all the marketing details.
2. By asking the developers to provide each (negative and positive) marketing
detail without any terms and conditions in their broacher.
3. By making the people aware of all the legal and technical documents which
are needed while going to buy a house.
Q: What source of information do you prefer while buying/ searching for a
property?
Frequency
Valid
Total
print
media
tv & radio
internet
outdoor
add
personal
reference
broker
Total
Valid
Percent
Percent
Cumulative
Percent
124
41.3
41.3
41.3
21
16
7.0
5.3
7.0
5.3
48.3
53.7
2.3
2.3
56.0
86
28.7
28.7
84.7
46
300
300
15.3
100.0
100.0
15.3
100.0
100.0
140
120
100
80
60
Count
40
20
0
print media
internet
tv & radio
personal reference
outdoor add
broker
The above Table and chart shows that most of the people prefer Print media (41.3
%) and personal reference (28.7 %) for searching house or property. And other
sources like Internet, Broker, TV & Radio, Outdoor advertisement are having 5.3
%, 15.3%, 7%, and 2.3% respectively.
Many people say that search of property through internet is very comfortable.
Because in a single click they can reach to a number of builders and their projects.
They were saying that mostly internet property web portal shows only marketing
detail of projects but if they will show legal and technical document of project so
searching property through internet become more beneficial.
Some people say that print media is better way of searching property because it is
easily available at every where any time and also gives information about current
status of project with marketing details.
Many people were saying that buying or searching house or property through
broker is not safe because of their dual nature .Generally they are making hype of
the developers project and hide negative side of the project.
QUS.3 Choose your preferable location and types of house you want to
purchase?
area of preference
Valid
new delhi
ghaziabad
noida
gurgaon
others
faridaba
new delh
Total
Total
Frequency
139
81
49
20
9
1
1
300
300
Percent
46.3
27.0
16.3
6.7
3.0
.3
.3
100.0
100.0
Valid
Percent
46.3
27.0
16.3
6.7
3.0
.3
.3
100.0
Cumulative
Percent
46.3
73.3
89.7
96.3
99.3
99.7
100.0
160
140
120
100
80
60
Count
40
20
0
new delhi
ghaziabad
noida
gurgaon
others
faridaba
new delh
area of preference
Majority of the people prefer Delhi as the location (46.3%), then comes the no. of
Ghaziabad and Noida with 27% and 16.3% respectfully, Gurgaon stands fourth
with 6.7%. The choice of area depends on the monitory condition and the facilities
available to people at a particular area.
Most of the people want 3 BHK in NewDelhi area with price ranging from
35 to 55 lakhs.
The demand for 2 BHK is bit less and varies from 15-20 lakhs.
The demand for 1BHK is not much.
People want 4 BHK in the range of 55 to 60 lakhs.
There is not great demand of Penthouses and villas in Delhi and NCR
region.
Most of the people who are doing job or having business who want to
purchase 3 BHK or 4 BHK prefer luxury house.
Q: Consumers preference of information related to property document from
Real Estate web portal, past record of builders, and marketing details-
Total
property
documents
marketind
details
past
records
Total
Percent
Valid
Percent
Cumulative
Percent
274
91.3
91.3
91.3
15
5.0
5.0
96.3
11
3.7
3.7
100.0
300
300
100.0
100.0
100.0
300
200
Count
100
0
property documents
marketind details
past records
can't say
no
11
In this
question,
majority
people
view that
of the
have a
there
yes
is a need for some regulatory body which can have a continuous eye on the real
estate sector.
Very less people say the answer as No, and least no of people have No
reply.
QUS.4: Do the Real Estate developers give possession timely?
Valid
Total
yes
no
can't say
Total
Frequency
107
156
37
300
300
Percent
35.7
52.0
12.3
100.0
100.0
Valid
Percent
35.7
52.0
12.3
100.0
Cumulative
Percent
35.7
87.7
100.0
can't say
yes
no
The answer of majority was not in favor. Out of 300 people,156 said no to this
comprising of 52% of the whole population. Whereas 106 said Yes and Rest
were in two minds.
Q: Do you think govt. takes necessary steps to provide house to the common
man?
Valid
Total
yes
no
can't say
Total
Frequency
98
148
54
300
300
Percent
32.7
49.3
18.0
100.0
100.0
Valid
Percent
32.7
49.3
18.0
100.0
Cumulative
Percent
32.7
82.0
100.0
can't say
yes
no
Majority said No when asked this question and comprised of 49.3% of the total
answers, 32% said yes and 18% didnt knew where to go.
Q. Cross Tabulation of the Place of preference & the Type of House which a
person likes to have.
C ount
ty pe o f 1B H K
hou s e a 2B H K
c us tom er 3B H K
prefers
4B H K
P E NT
HOUS E
T otal
plac e of preferenc e of a pe rs o n
new delhi gha z iabad noida
gurgaon faridabad
4
2
5
1
24
25
15
7
3
84
42
27
12
1
15
9
3
5
2
2
129
oth ers
3
6
2
T otal
12
77
172
36
1
78
51
3
25
11
300
100
80
place of preference
60
new delhi
ghaziabad
40
noida
gurgaon
Count
20
faridabad
0
others
1BHK
3BHK
2BHK
PENT HOUSE
4BHK
When the places of preference were cross tabulated with the types of houses the
consumers want then the result came out to be that:
Majority of the public want 3BHK houses (i.e. 172) and that too the demand
is the most in Delhi (82).
The least is the demand of the Pent Houses (total-3), which were in Delhi
and Noida region.
There is very less demand of 1BHk houses in the NCR region which is
evenly distributed throughout.
The demand for 2BHK houses comes second in the list with 77 out of 300
going for it. This is mainly concentrated in Delhi and Ghaziabad area.
According to my survey, no one demanded Villas.
Q. Cross tabulation of the place of preference and the amount which a person
is willing to pay.
Count
p la c e o f n e w d e lh i
p re fe re n c e g h a z ia b a d
of a
n o id a
p e rs o n
g u rg a o n
f a rid a b a d
o th e rs
T o ta l
1 0 -1 5
5
4
5
1
15
A M O U N T W IL L I N G T O P A Y in L A K H S
1 6 -2 5
2 6 -3 5
3 6 -4 5
4 6 -5 5 a b o v e 5 5
18
60
36
8
2
17
32
17
7
1
13
20
10
1
2
6
10
7
1
2
1
1
1
1
4
6
1
56
127
77
19
6
T otal
129
78
51
25
6
11
300
70
60
50
place of preference
40
new delhi
ghaziabad
30
noida
20
Count
gurgaon
10
faridabad
others
10-15
26-35
16-25
46-55
36-45
above 55
C ount
ty p e of 1 B H K
hous e a 2B H K
c u s t o m e r3 B H K
p re f e rs
4B HK
PENT
HO US E
T o ta l
1 0 -1 5
10
2
3
15
A M O U N T W I L L I N G T O P A Y in L A K H S
1 6 -2 5
2 6 -3 5
3 6 -4 5
4 6 -5 5 a b o v e 5 5 T o t a l
1
1
12
43
20
11
1
77
12
107
45
5
172
21
11
4
36
56
127
77
19
300
The Cross-Tabulation of the types of Houses and their range shows the following
things:
The demand for 3BHK houses with price range in between 26-35 lakhs is
the most.
3BHK is also in demand in the range in between 36-45 lakhs.
The demand for 2BHK houses comes 2nd with the price range of 16-25 lakhs.
120
100
80
2BHK
Count
3BHK
20
4BHK
PENT HOUSE
10-15
26-35
16-25
46-55
36-45
above 55
Q.10: What all documents you should look before buying house?
Peoples are now very conscious about property document. They were saying that
while buying or searching property they check property document, but since most
of them do not know the all property document required to check thats why there
is need to create awareness about property document and builders should show the
entire property document to customers themselves.
While survey generally people gave name of fallowing property document
Q: What Problems have you faced while Dealing with the REAL ESTATE
DEALERS..?
There were varied Responses to this question
Majority said that they wanted to get rid of the brokers.
Some said they wanted the Developers to display their complete information
on line and to the customers.
There were people who wanted Hidden costs to be absent.
Some wanted to get rid of the false promises.
Almost all of the people wanted that the Developers should show
transparency and provide them with each and every form of information
which they wanted.
Strengths
Team of professional having technical expertise, past experience in the field
of marketing, Finance, Project audit and Media for real estate sector.
A wide range of services on web portal compared to the other web portals.
By creating awareness regarding the Marketing details, legal and technical
document of the project make consumer more satisfied.
In recent years, organized sector has increased its share in the market
unorganized sector.
Weakness
Failure to curve the activities of the un-organized sector.
Lack of project developers support in providing the legal and technical
documents.
Opportunities
Threats
Tough competition among web portal segment of real estate.
Some illegal services provided by the Broker.
Government policy.
5.1 Findings:
Most of the people are dissatisfied from the real estate marketing
information provided by the real estate companies, but very few people are
strongly satisfied.
89% people are checking legal status of construction while buying/
searching a house.
Some of the people check delayed delivery penalty clause while buying a
property.
70.7% people want to check details of booking before buying or searching
house.
Most of the people have chosen PRINT MEDIA & BROKERS as a source
of information while buying or searching for a property.
People who have chosen internet, print media, brokers, and personal
reference as a source of information for searching house or property are
more satisfied compare to the other sources of information.
There is great demand of 2, 3 BHK house in near future in DELHI and NCR
region.
Most of the people chose information related to the property documents as
their first preference compared to the marketing details of the project, past
record of builder and new policies of govt. related to real estate sector.
Most of the people wanted the government to make policies in terms of
legal, technical and financial aspects which could create transparency in real
estate sector.
Most of the people know only the names of few property documents and
they check only these documents while searching a property.
A number of builders do not want to show the property documents to the
customers.
5.2 CONCLUSION:-
Now a days people who go for buying a house have become more aware about
what they should look for and the information they should seek, and are more
concerned about the selection of the right type of house for them. But majority of
the people are still unaware of the documents which they should look for before
going to buying a house. Here I have collected the perception and analyzed the
expectations of the general public as a whole. The conclusion thus is that people
need to be more aware of all the documents, the total legalities, and collect as
much as information from the builders, and then only they can do their investment
with a free mind.
Thus because of the above reasons there is a need to create awareness among the
customers as well as project developers to give the customers the complete
information and the role of TRUSTED PROPERTY to educate people is
appreciated in this regard.
6.SUGGESTIONS:
On the basis of my findings, I want to make certain recommendations as follows
Recommendation to Apeksha build homes Pvt. Ltd.
First and foremost, the database generated through the project should be put
to effective use through continuous follow-ups to the potential customers. A
follow-up should be made on the industry potential as a whole as well.
Recommendation to customer
Customers should check all the legal and technical documents and not only
the marketing details of the builders/project, before buying or searching
house.
Customers should go through all the terms and conditions of the project
developed.
Customer should be aware of the governments policy related to Real
Estate.
Recommendation to Project Developer (Builder)
Builders should show their legal and technical documents to the customers,
to make them satisfied because most of the customers want to check it and
this also helps in creating a unique identity of the developers.
LIMITATIONS: Un-availability of the desired personnel was the biggest constraint to this
study. Although appointments were made and followed up where possible
but still there were instances where the desired people were either
unavailable or unwilling to meet.
BIBLIOGRAPHY
Referred Books:
Kothari C.R.- Research Methodology New Delhi Tata McGraw Hill In
(95-102)
Kotler Phillip Marketing management analysis, planning implementation
and control.
Referred Websites:
www.apekshagroup.co.in
www.trustedproperty.org
www.indianrealestateforum.com
www.google.com
www.scribd.com
www.propertywala.com
www.indiatimes.com
www.buisnessstanderd.com
www.economicstimes.com
(NOTE-All the information taken from you is only used for research purpose)
Profession-
Govt. service
Pvt. Service
Business
DesignationName of organization/Company.
Contact No. +91-. Email.
Age (in yrs) 25 to 30
30 to 35
35 to 40
More than 40
1) Rank the following detail according to their importance at the time of purchasing a property?
(Rank1 to the most important, 3 to least)
a) Property documents
c) past record
2) Tick the options which match your preferable location and types accordingly?
Type
Location
1 BHK
2 BHK
3 BHK
4 BHK
Penthouses
New Delhi
Ghaziabad
Noida
Faridabad
Gurgaon
Others
3) For the above chosen option how much are you willing to pay?
.
4) Do you think real estate developers give possession timely?
a)
Yes
b) No
c) Cant Say
5) How much are you satisfied from real estate marketing information provided by real estate companies?
a) Highly Satisfied
b) Satisfied
d) Dissatisfied
e) Highly dissatisfied
c) Neutral
6) Do you think the govt. takes necessary steps to provide house to the common man?
Villas
a) Yes
b) No
c) Cant say
7) What source of information do you prefer while buying /searching for a property?
a) Print media
c) Internet
d) Outdoor Add.
e)Personal Reference
f) Broker
8) Do you think real estate web portal bridges the information gap between real estate developer and customer?
a) Yes
b) No
c) Cant Say
9) What all documents you should look for before buying a house?
11) What problems have you faced while dealing with the real Estate dealers?