SUMMER INTERNSHIP REPORT

ON

INVESTORS PERCEPTION IN REAL ESTATE

PROJECT WORK SUBMITTED IN PARTIAL FULLFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE OF

MASTER OF MANAGEMENT STUDIES IN MARKETING

SEMESTER III

2016-2018

SUBMITTED BY

PRASHANT PATIL

UNDER THE GUIDANCE OF

PROF.

ALAMURI RATNAMALA INSTITUTE OF ENGINEERING AND

TECHNOLOGY

UNIVERSITY OF MUMBAI

2017

1
 PROJECT REPORT ON

INVESTORS PERCEPTION IN REAL ESTATE

MASTER OF MANAGEMENT STUDIES

SEMESTER III (MARKETING)

2016-2018

IN PARTIAL FULLFILLMENT OF REQUIREMENT FOR THE AWARD

OF DEGREE OF MASTER OF MANAGEMENT STUDIES

SUBMITTED BY:

PRASHANT PATIL

ALAMURI RATNAMALA INSTITUTE OF ENGINEERING AND

TECHNOLOGY

ASANGAON

2
 DEPARTMENT OF MANAGEMENT STUDIES
CERTIFICATE

This is to certify that the disseratation/project entitled A STUDY ON

CUSTOMER SATISFACTION LEVEL TOWARDS SAI SHAKTI
CONSTRUCTION submitted by MS. PRASHANT PATIL bearing PIN
ARMIET/MMS 16/SS 037 on 14th day of july 2017 in partial fulfillment of the
requirement for the award of the Degree of Master of Management Studies of
University of Mumbai, is a bonafide to work to the best of my knowledge and may
be placed before the Examination Board for their consideration.

__________________
Prof. External Examiner
Internal Examiner

Dr. L.S. Bothra

Principal

3
 DECLARATION

I , PRASHANT PATIL, studying in the second year semester III of Master

of Management Studies Course at Alamuri Ratnamala Institute of Engineering and
technology, Asangaon, hereby declare that I have completed the project titled
INVESTORS PERCEPTION IN REAL ESTATE as a part of course

requirement for MMS programme..

I further declare that the information presented in this project is true and original to
the best of my knowledge.

SIGNATURE

(MS.PRASHANT PATIL)

ROLL NO.

Date:

Place:

4
 ACKNOWLEDGEMENT

I would like to expressmy sincere acknowledgement to SAI SHAKTI

DEVELOPERS for a wonderful opportunity to purse my summer internship with
the company.
I would like to thanks Mr. Rajendra Gupta (), external guide for giving me an
opportunity to complete my project work with the esteemed company SAI
SHAKTI DEVELOPER.
I would sincerely and very deeply like to thank my projet guide prof. for all his
guidance, support and blessings without which this project would have been a
distant reality.
I would like to thank my institution ARMIET, Principal Dr. L.S.Bothra, and all
my faculty members for extending their support, I am highly indebted to them for
their kind of co-operation, encouragement, guidance, constant supervision which
help me in completion of this project and also for providing me with necessary
information and knowledge regarding the project which helped me in completing
the same.

5
 INDEX

SRNO. TOPIC PAGE NO.

1 EXECUTIVE SUMMARY 8

2 REVOLUTION 9

3 INTRODUCTION 10

4 OVERVIEW OF REAL ESTATE MARKETS 11

5 SWOT ANALYSIS 39

6 NEED OF STUDY 41

7 OBJECTIVE OF STUDY 42

8 RESEARCH METHODOLOGY 43

9 SAMPLE QUESTIONNARE 44

10 DATA ANALYSIS 46

11 BALANCE SHEET OF SAI SHAKTI

DEVELOPERS

12 SUGGESTION

13 CONCLUSION

14 BIBLOGRAPHY

6
EXECUTIVE SUMMARY

Real estate industry is a new economic growth point and main in Indian gross
domestic product nowadays. This paper analyzes the trend of Indian real estate
market development to help investors to understand the current situation of Indian
real estate markets and policies better, so as to make better real estate investment

7
decisions in India in future. Because of oversaturated with the investment and
higher cost of investment there are more and more limitations in investing in big
cites in India. With the rapid development of the economy, the huge inner demand
of real estate is increasing in medium and small sized cities. Some investigations
show that there are huge spaces of appreciation in Indian real estate market in
medium and small sized cities. Analyse the essential of customer satisfaction for
real estate exploiting enterprise, and carves up total process of real estate
exploiting enterprise executing customer satisfaction for four phases including of
identifying demand, establishing plan, executing project, finishing project. The
paper points the risk for real estate exploiting enterprise actualizing customer
satisfaction and comes out corresponding settling measures. Finally, erects
strategic transmission of customer satisfaction for real estate exploiting enterprise.
It will offer academic reference for real estate exploiting enterprise heighting its
management level.

REVOLUTION
The Indian real estate sector is witnessing a quiet revolution, owing to a flourishing
economy and a positive government attitude, which includes a liberalized foreign
directinvestment regime. The realty sector, which is growing at an
amazing 35 per cent, is estimated to be worth US$ 15 billion. It is also expected
to grow at 30 per cent annuallyover the next decade, attracting foreign
investments worth US$ 30 billion. This double-digit growth is mainly

8
attributed to the off shoring business, including high-ending technology
consulting, call centres and software businesses. The IT and ITES sector
isestimated to require 150 million sq ft of office space across urban
India by 2010. Thiswill have a domino effect since for every square feet of
developed office area; around 10sq ft of residential space needs to be developed for
accommodation of the employees. Almost 80 percent of real estate developed in
Indian is residential space, the comprising of offices, shopping malls, hotels and
hospitals. According to the Tenth FiveYear Plan, there is a shortage of 22.4 million
dwelling units. Thus, over the next 10 to 15years, 80 to 90 million housing
dwelling units will have to be constructed with a majorityof them catering to
middle and lower income groups.After agriculture, the real estate sector is
the second largest employment generator in India and contributes heavily
towards gross domestic product (GDP). Five per cent of the countrys GDP is
contributed to by the housing sector. In next five years, this contribution to the
GDP is expected to rise to 6 percent. The real estate sector is also responsible for
the development of over 250 other ancillary industries such as cement, steel, paints
etc. A study by rating agency ICRA shows that the construction industry ranks
3rd among the 14 major sectors in terms of direct, indirectand induced
effects in all sectors of the economy. A unit increase in expenditure in
thissector has a multiplier effect and the capacity to generate income as high as
five times. If the economy grows at the rate of 10 per cent, the housing sector has
the capacity to growat 14 percent and generates 3.2 million new jobs over a
decade.

ALL-ROUND DEVELOPMENT

Rising income levels of a growing middle class along with increase in

nuclear families,changing demographics of home buyers (the average
age of a new homeowner in 2006was 32 years compared with 45 years a
decade ago), and easy housing finance has led toa boom in the housing sector.
According to Housing Skyline of India 2007-08, a study by research firm,
Indicus Analytics, there will be a demand for over 24.3 million new
9
dwellings for self-living inurban India alone by 2015. Consequently, this
segment is likely to throw huge investmentopportunities. In fact, an estimated
US$ 25 billion investment will be required over the next five years in urban
housing, says a Merrill Lynch report. F u r t h e r m o r e a , b o o m i n g b o o m i n g
Indian economy has had a cascading effect on demand
for commercial property to help meet the needs of business,
s u c h a s m o d e r n o f f i c e s , warehouses, hotels and retail shopping
centres.Growth in commercial office space requirement is led by the burgeoning
outsourcing andinformation technology (IT) industry and organized retail.
For example, the organizedretail industry is likely to require an additional 220
million sq ft by 2010.Moreover, growth is not restricted to a few towns and
cities but is pan-India, coveringnearly all tier I and tier II cities. Market
analysis pegs returns from realty in India at an average of 14 per cent
annually with a tremendous upsurge in commercial real estate
ona c c o u n t o f t h e I n d i a n B P O b o o m . A s i g n i f i c a n t d e m a n d i
s a l s o e x p e c t e d a s t h e outsourcing boom moves into
the manufacturing sector. Further, the housing sector has been growing
at an average of 34 per cent annually, while the hospitality industry
has been growing at around 10 per cent over the last couple of years.A p a r t f r o m
the huge demand, India also scores on the construction front.
M c K i n s e y report reveals that the average profit from construction in
India is 18 per cent, which isdouble the profitability for a construction project
undertaken in the US.

INTRODUCTION

Definition of Real Estate

Land and anything fixed, immovable, or permanently attached to it such as appurtenances,

buildings, fences, fixtures, improvements, roads, shrubs and trees (but notgrowing

10
crops), sewers, structures, utility systems, and walls. Title to real estate
normallyincludes title to air rights, mineral rights, and surface rights which can be
bought, leased, sold, or transferred together or separately. Also called real property.

Real estate means an immovable property, either commercial or residential which

mayconsist of a building or a structure. Real estate can be divided into 3 main
categories:

Commercial

Residential

Agricultural/Vacant Land

Real estate involves the purchase, sale, and development of land, residential and
non-residential buildings. The main players in the real estate market are
the landlords,developers, builders, real estate agents, tenants, buyers etc. The
activities of the realestate sector includes the housing and construction sectors.Real
estate is a 12$ billion (revenue) industry in India. There has been a rapid growth
inthe industry in the past few years. It is one of the fastest growing sectors in India.
Thehousing sector has been growing at an average of 34% annually. In the
residential sector,a growing middle class is enjoying rising income levels.
Combined with smaller household sizes, this demographic change has boosted
demand for more modern housing.Real estate is not just about housing these days
it has become a beneficial investmentoption as real estate can be pledged as
collateral to secure a loan. One can also earn rentalincome from the real estate
properties .Profits can be earned from real estate as a result of appreciation of real
estate property prices. This is known as capital gains from real estate.In the
commercial property segment, strong growth in the services sector Specially the
ITand BPO industry have led to greater demand for commercial space.The
importance of real estate sector, as a major player of nations growth, can be
seenfrom the fact that it is the second largest employer next only to agriculture. 5
% of thecountrys GDP is contributed by the housing sector. In the next three or
four or five yearsthis contribution to the GDP is expected to rise to 6%The real
estate industry has significant linkages with several other sectors of theeconomy.
It consists of a collection of industrial and services sectors of the economy, such as
construction (housing construction, as well as construction of commercial

11
offices,retail and industrial buildings, and infrastructure projects such as dams,
roads and bridges), brokerage services, real estate finance services (mortgage
banking, real estateinvestment), real estate operations, property management,
architecture and design.The relaxed FDI rules implemented by India in the recent
years have invited moreforeign investors and real estate sector in India is
seemingly the most lucrative ground at present. Private equity players are
considering big investments, banks are giving loans to builders, and financial
institutions are floating real estate funds. Indian property market isimmensely
promising and most sought after for the purpose of investment.

Growth Potential
India is currently the second fastest-growing economy in the World. The
Indianconstruction industry has been playing a vital role in overall economic
development of the country, contributing 6% to GDP. In 2005, the sector generated
around 31 million jobs (of which only 1 million were generated by the organized
sector).Developments in the real estate sector are being influenced by the
developments in theRetail, hospitality and entertainment (e.g., hotels, Resorts,
cinema theatres) industries,economic services (e.g., hospitals, schools) and
information technology (IT)-enabledservices (like call centers) etc. Also with the
growing quantum of domestic andinternational capital inflow, economic growth is
likely to continue, and with it, thedemand for infrastructure to maintain and
accelerate the performance. As a result, the public sector has remained a big
investor in this sector, given the acute shortage of infrastructure in India compared
to the requisite level required to achieve the next growthtarget.The Government of
India proposes to achieve 9.0% GDP growth during the EleventhPlan period. To
achieve growth of this scale, adequate infrastructure is the most basicrequirement.
In order to overcome the current constraint of insufficient moderninfrastructure,
the government is developing a program for infrastructure investment through both
public and private sectors, and expects to more than double publicinvestments
from 1.2% of GDP in FY07 to 2.8% by FY12. It is also partnering with private
companies on initiatives such as the ultra mega power projects and
GoldenQuadrilateral project and Delhi Mumbai industrial Corridor.

Future Prospects on Real Estate Industry

The real estate market in India is yet in an emerging stage and the scope is
simplyunlimited. It does not resemble a bubble that will burst. An unhindered
growth for thenext twenty years is almost sure. This is because the outsourcing
business in India isgrowing at a rapid speed and this entails a huge demand for
commercial buildings andurban housing besides improvement in infrastructure.
12
The organized retail market inIndia is also accelerating with players like Wal-Mart,
Bharti etc. looking forward to makea mark, thus stepping up the demand for real
estate.The Governments ambitious projects lined up for the Eleventh Plan
period ,shows thedemand for construction is expected to grow by at least 8-9%,
and 2.5 millionemployment opportunities per annum are expected to be generated.
Favorablegovernment policies for globalization and liberalization have put India
on the fast track.In fact, today India is the second, fastest-growing economy in the
world, and is the centreof attraction globally. With greater quantum of domestic
and international capital flowinginto various sectors of the economy, growth is
likely to continue. However, it has becomea necessity for India to modernize and
expand its infrastructure not only to sustain, but to benefit from the existing growth
spree. Moreover, the governments initiatives such asthe ultra mega power
projects, Golden Quadrilateral project, have been of great supportfor the sector.
Moreover, increased investment outlay in the Eleventh plan, and higher private
investments, apart from the public-private partnership, would prove beneficial
inmeeting the infrastructure needs of various segments of the economy.

Government Policies
The government has taken various initiatives to improve the real estate sector. It
has made the policies for FDI in real estate very liberal. The new stand adopted by
Indiangovernment regarding foreign direct investment (FDI) policies has
encouraged anincreasing number of countries to invest in Indian Properties. The
positive outlook of Indian government is the key factor behind the sudden rise of
the Indian Real Estatesector. The Government of India in March 2005 amended
existing norms to allow 100 per cent FDI in the construction business. This
liberalization act cleared the path for foreign investment to meet the demand into
development of the commercial andresidential real estate sectors. It has also
encouraged several large financial firms and private equity funds to launch
exclusive funds targeting the Indian real estate sector.Until now, only Non Resident
Indians (NRIs) and Persons of Indian Origin (PIOs) were permitted to invest in the
housing and the real estate sectors. Foreign investors other than NRIs were allowed
to invest only in development of integrated townships and settlementseither
through a wholly owned subsidiary or through a joint venture company in
Indiaalong with a local partner. The minimum land area for development by
foreign investorsis lowered from the earlier floor of 100 acres to 25 acres which
has further made the realestate sector lucrative in the eyes of the foreign
investors.The Government is also initiating various projects like the ultra mega
power project,Golden quadrilateral project and the Delhi Mumbai Industrial
corridor.

13
Company Vision

Vision as a global business gives everyone within the organization a clear direction
and goals to aim for. It underpins everthing we do, and the principles are clear for
us all: To be the company of first choice for all takeholders customers,
employees, suppliers, trade contractors and the society in which we live.

To challenge and change the poor image of construction in India

With leanness and agility adopt processes to compete with world- leading
businesses

Company Values

Customer Centric
Social Responsibility
Learning and Innovation
Performance Excellence
Collective Ownership

Company Policies

Sai shakti developers holds customer satisfied, security & The Environment
as core business values and is committed to create a future free of incidents and
injuries where

All stakeholders activity create safe environments;

Leadership, passion and commitment are present at all level;

Working safely enhances quality, improves productivity and generates value;

Attitude and behaviour replaces statistics as a measure of success;

14
 People are enabled to make safe choices about their own and their neighbors
safety and to challenge the environment in which they work

Our business only welcomes those who support our vision and are willing to
change no compromise on safety.

The company recognizes the importance of discharging all its statutory

obligations and duties. The minimum health and safety obligations are
thoserequired by relevant legislation and authoritative guidance. SAI
SHAKTI DEVELOPERSwill takeappropriate steps to meet, and in many
cases enhance these requirements. To make SAI SHAKTI DEVELOPERS the
company of first choice for all stakeholders, to challenge andchange the image
of construction in India. The Board will ensure that the SMS is
periodically reviewed to ensure itsremains legally complaint, achievable,
relevant and credible.Continual improvement will be achieved by effective
implementation of theabove. Everyone working for SAI SHAKTI
DEVELOPERS is required to support and promote this Policy.

OVERVIEW OF REAL ESTATE MARKETS

The main participants in real estate markets are:

Owner/User - These people are both owners and tenants. They purchase
houses or commercial property as an investment and also to live in or utilize
as a business.

15
 Owner - These people are pure investors. They do not consume the real
estate that they purchase. Typically they rent out or lease the property to
someone else.

Renter - These people are pure consumers.

Developers - These people prepare raw land for building which results in
new product for the market.

Renovators - These people supply refurbished buildings to the market.

Facilitators - This includes banks, real estate brokers, lawyers, and others
that facilitate the purchase and sale of real estate.

The owner/user, owner, and renter comprise the demand side of the market, while
the developers and renovators comprise the supply side. In order to apply simple
supply and demand analysis to real estate markets a number of modifications need
to be made to standard microeconomic assumptions and procedures. In particular,
the unique characteristics of the real estate market must be accommodated. These
characteristics include:

1. Durability - Real estate is durable. A building can last for decades or even
centuries, and the land underneath it is practically indestructible. Because of
this, real estate markets are modeled as a stock/flow market. About 98% of
supply consists of the stock of existing houses, while about 2% consists of the
flow of new development. The stock of real estate supply in any period is
determined by the existing stock in the previous period, the rate of deterioration
of the existing stock, the rate of renovation of the existing stock, and the flow of
new development in the current period. The effect of real estate market
adjustments tend to be mitigated by the relatively large stock of existing
buildings.

2. Heterogeneous - Every piece of real estate is unique, in terms of its location, in

terms of the building, and in terms of its financing. This makes pricing difficult,
increases search costs, creates information asymmetry and greatly restricts
substitutability. To get around this problem, economists (beginning with Muth
(1960)) define supply in terms of service units, that is, any physical unit can be
deconstructed into the services that it provides. Olsen (1969) describes these
16
 units of housing services as an unobservable theoretical construct. Housing
stock depreciates making it qualitatively different from a new building. The
market equilibrating process operates across multiple quality levels. Further, the
real estate market is typically divided into residential, commercial, and
industrial segments. It can also be further divided into subcategories like
recreational, income generating, area, historical/protected, etc.

3. High Transaction costs - Buying and/or moving into a home costs much more
than most types of transactions. These costs include search costs, real estate
fees, moving costs, legal fees, land transfer taxes, and deed registration fees.
Transaction costs for the seller typically range between 1.5 - 6% of the purchase
price. In some countries in Continental Europe, transaction costs for both buyer
and seller can range between 15 - 20%.

4. Long time delays - The market adjustment process is subject to time delays due
to the length of time it takes to finance, design, and construct new supply, and
also due to the relatively slow rate of change of demand. Because of these lags
there is a great potential for disequilibrium in the short run. Adjustment
mechanisms tend to be slow, relative to more fluid markets.

5. Both an investment good and a consumption good - Real estate can be

purchased with the expectation of attaining a return (an investment good), or
with the intention of using it (a consumption good), or both. These functions
can be separated (with market participants concentrating on one or the other
function) or can be combined (in the case of the person that lives in a house that
they own). This dual nature of the good means that it is not uncommon for
people to overinvest in real estate, that is, to invest more money in an asset than
it is worth on the open market.

6. Immobility - Real estate is locationally immobile (save for mobile homes, but
the land underneath them is still immobile). Consumers come to the good rather
than the good going to the consumer. Because of this, there can be no physical
market-place. This spatial fixity means that market adjustment must occur by
people moving to dwelling units, rather than the movement of the goods. For
example, if tastes change and more people demand suburban houses, people
must find housing in the suburbs, because it is impossible to bring their existing

17
 house and lot to the suburb (even a mobile home owner, who could move the
house, must still find a new lot). Spatial fixity combined with the close
proximity of housing units in urban areas suggests the potential for externalities
inherent in a given location.

Real estate trends

Real estate trends is a generic term used to describe any consistent pattern or
change in the general direction of the real estate industry which, over the course of
time, causes a statistically noticeable change. This can be a result of the economy,
a change in mortgage rates, consumer speculations, or other fundamental and non-
fundamental reasons.

A real estate trend is the catalyst for the change, and it is usually a concept, a
belief, a philosophy, or an event. Sometimes a real estate trend evolves to meet a
specific need, while others evolve when new products or solutions are launched.
For example, when more lenders began offering creative financing products, more
borrowers were able to afford a mortgage (at least on paper). At other times, a
trend from another industry spills over into the real estate industry and is adopted.

Therefore, a trend must have substance and be based on fact. Over time, it will
cause pattern of change. Monitoring changes and tracking trends is a not an exact
science and can be very hard to predict.

The residential real estate brokerage industry is approximately half way through a
10 -15 year industry transition. This major shift is creating a fundamental change in
the way homes are being bought and sold and the role the real estate agents are
playing therein.

Real estate broker

Real estate broker is a party who acts as an intermediary between sellers and
buyers of real estate and attempts to find sellers who wish to sell and buyers who
wish to buy. In the United States, the relationship was originally established by
reference to the English common law of agency with the broker having a fiduciary
relationship with his clients. Estate agent is the term used in the United Kingdom
to describe a person or organization whose business is to market real estate on
behalf of clients.

18
In the US, real estate brokers and their salespersons (commonly called "real estate
agents" or, in some states, "brokers") assist sellers in marketing their property and
selling it for the highest possible price under the best terms. When acting as a
Buyer's agent with a signed agreement (or, in many cases, verbal agreement,
although a broker may not be legally entitled to his commission unless the
agreement is in writing), they assist buyers by helping them purchase property for
the lowest possible price under the best terms. Without a signed agreement, brokers
may assist buyers in the acquisition of property but still represent the seller and the
seller's interests.

In most jurisdictions in the United States, a person is required to have a license in

order to receive remuneration for services rendered as a real estate broker.
Unlicensed activity is illegal, but buyers and sellers acting as principals in the sale
or purchase of real estate are not required to be licensed. In some states, lawyers
are allowed to handle real estate sales for compensation without being licensed as
brokers or agents.

The difference between salespersons and brokers

In the past, when brokers (and their agents) only represented sellers, the term
real estate salesperson may have been more appropriate than it is today, given
the different ways that brokers and their agents can help a buyer through the
process rather than simply sell him or her a property. Legally however, the term
'salesperson' is still used in many states to describe a real estate agent.

Real estate education: In order to become licensed, most states require that an
applicant take a minimum number of classes before taking the state licensing
exam. Such education is often provided by real estate brokerages as a means to
finding new agents.

Today in many states, the real estate agent (acting as an agent of the broker with
whom he/she is employed) is required to disclose to prospective buyers and sellers
who represents whom. See below for a broker/agents relationship to sellers and
their relationship to buyers.

19
While some people may refer to any licensed real estate agent as a real estate
broker, a licensed real estate agent is a professional who has obtained either a real
estate salesperson's license or a real estate broker's license.

In the United States, there are commonly two levels of real estate professionals
licensed by the individual states, but not by the federal government:

Real estate salesperson (or, in some states, Real estate broker)

When a person first becomes licensed to become a real estate agent, he/she obtains
a real estate salesperson's license (or some states use the alternative term, "broker")
from the state in which he/she will practice. If you want to obtain a real estate
license, the candidate must take specific coursework (of between 40 and 90 hours)
and then pass a state exam on real estate law and practice. In order to work,
salespersons must then be associated with (and act under the authority of) a real
estate broker.

Many states also have reciprocal agreements with other states, allowing a licensed
individual from a qualified state to take the second state's exam without completing
the course requirements, or, in some cases, take only a state law exam.

Real estate broker (or, in some states, Qualifying Broker)

After gaining some years of experience in real estate sales, a salesperson may
decide to become licensed as a real estate broker (or Principal/Qualifying broker)
in order to own, manage or operate his/her own brokerage. Commonly more course
work and a broker's state exam on real estate law must be passed. Upon obtaining a
broker's license, a real estate agent may continue to work for another broker in a
similar capacity as before (often referred to as a broker associate or associate
broker) or take charge of his/her own brokerage and hire other salespersons (or
broker) licensees. Becoming a branch office manager may or may not require a
broker's license. Some states such as New York allow licensed attorneys to become
real estate brokers without taking any exam. In some states, such as Colorado,
there are no "salespeople", as all licensees are Brokers.

A REALTOR, pronounced Real-tor, is a real estate salesperson or broker who is

a member of the National Association of Realtors (NAR). All Realtors are
brokers/salespersons, but not all brokers/salespersons are Realtors.

20
Agency relationships with clients versus Non-Agency relationships with
customers

Agency relationship: Traditionally, the broker provides a conventional full-

service, commission-based brokerage relationship under a signed listing agreement
with a seller or "buyer representation" agreement with a buyer, thus creating under
common law in most states an agency relationship with fiduciary obligations. The
seller or buyer is then a client of the broker. Some states also have statutes which
define and control the nature of the representation.

Agency relationships in residential real estate transactions involve the legal

representation by a real estate broker (on behalf of a real estate company) of the
principal, whether that person or persons is a buyer or a seller. The broker (and
his/her licensed real estate agents) then becomes the agent of the principal.

Non-agency relationship: where neither written agreement nor fiduciary

relationship exists, a real estate broker (and his agents) works with a principal who
is then known as the brokers customer.

When a buyer, who has not entered into a Buyer Agency agreement with the broker
and buys a property, then that broker functions as the sub-agent of the sellers
broker. When a seller chooses to work with a transaction broker, there is no agency
relationship created.

Transaction brokers

Some state Real Estate Commissions, notably Florida's after 1992 (and extended in
2003) and Colorado's after 1994 (with changes in 2003), created the option of
having no agency nor fiduciary relationship between brokers and sellers or buyers.
Having no more than a facilitator relationship, transaction brokers assists buyers,
sellers, or both during the transaction without representing the interests of either
party who may then be regarded as customers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of

Florida legislative committees :

"The Transaction Broker crafts a transaction by bringing a willing buyer and a

willing seller together and assists with the closing of details. The Transaction

21
Broker is not a fiduciary of any party, but must abide by law as well as professional
and ethical standards." (such as NAR Code of Ethics)

The result was that in 2003, Florida created a system where the default brokerage
relationship had "all licensees operating as transaction brokers, unless a single
agent or no brokerage relationship is established, in writing, with the customer
and the statute required written disclosure of the transaction brokerage relationship
to the buyer or seller customer only through July 1, 2008.

In both Florida and Colorado's case, dual agency and sub-agency (where both
listing and selling agents represented the seller) no longer exist.

Dual or limited Agency

Dual agency occurs when the same brokerage represents both the seller and the
buyer under written agreements. Individual state laws vary and interpret dual
agency rather differently. Many states no longer allow dual agency. Instead,
Transaction Brokerage (see above) provides the Buyer and Seller with a limited
form of representation, but without any fiduciary obligations (see Florida law).
Buyers and sellers are generally advised to consult a licensed real estate
professional for a written definition of an individual state's laws of agency, and
many states require written Disclosures to be signed by all parties outlining the
duties and obligations.

If state law allows for the same agent to represent both the buyer and the
seller in a single transaction, the brokerage/agent is typically considered to
be a Dual Agent. Special laws/rules often apply to dual agents, especially in
negotiating price.

In some states (notably Maryland), Dual Agency can be practiced in

situations where the same brokerage (but not agent) represent both the buyer
and the seller. If one agent from the brokerage has a home listed and another
agent from that brokerage has a buyer-brokerage agreement with a buyer
who wishes to buy the listed property, Dual Agency occurs by allowing each
agent to be designated as intracompany agent. Only the broker himself is
the Dual Agent.

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 Some states do allow a broker and one agent to represent both sides of the
transaction as dual agents. In those situations, conflict of interest is more
likely to occur.

Types of services that a broker can provide

Since each state's laws may differ from others, it is generally advised that
prospective sellers or buyers consult a licensed real estate professional.

Some Examples:

Comparative Market Analysis - an estimate of the home's value compared with

others. This differs from an appraisal in that property currently for sale may be
taken into consideration (competition for the subject property).

Exposure - Marketing the real property to prospective buyers.

Facilitating a Purchase - guiding a buyer through the process.

Facilitating a Sale - guiding a seller through the selling process.

FSBO document preparation - preparing necessary paperwork for "Sale By

Owner" sellers.

Full Residential Appraisal - but only, in most states, if the broker is also
licensed as an appraiser.

Home Selling Kits - guides to how to market and sell a property.

Hourly Consulting for a fee, based on the client's needs.

Leasing for a fee or percentage of the gross lease value.

Property Management.

Exchanging property.

Auctioning property.

Preparing contracts and leases. (Not in all states.)

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These services are also changing as a variety of real estate trends re-engineer the
industry.

General

The sellers and buyers themselves are the principals in the sale, and real estate
brokers (and the broker's agents) are their agents as defined in the law. However,
although a real estate agent commonly fills out the real estate contract form, agents
are typically not given power of attorney to sign the real estate contract or the
deed; the principals sign these documents. The respective real estate agents may
include their brokerages on the contract as the agents for each principal.

The use of a real estate broker is not a requirement for the sale or conveyance of
real estate or for obtaining a mortgage loan from a lender. However, once a broker
is used, the settlement attorney (or party handling closing) will ensure that all
parties involved be paid. Lenders typically have other requirements, though, for a
loan.

Services provided to both buyers and sellers

In addition to the services to sellers and buyers described below, most real estate
agents coordinate various aspects of the closing.

Real estate brokers (and their agents) typically do not provide title service such as
title search or title insurance, do not conduct surveys or formal appraisals of the
property such as those required by lenders, and do not act as lawyers for the
parties, although they may "coordinate" these activities with the appropriate
specialists. Some real estate brokers may be associated with loan officers who may
help to finance buyers to make their purchase.

Regardless of whether a real estate agent assists sellers or buyers of real estate,
negotiation and financing skills are important.

The "listing" contract

Several types of listing contracts exist between broker and seller. These may be
defined as:

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 Exclusive Right to Sell

In this type of Agreement", the broker is given the exclusive right to market the
property and represents the seller exclusively. This is referred to as Seller
Agency. However, the brokerage also offers to co-operate with other brokers
and agrees to allow them to show the property to prospective buyers and offers
a share of the total real estate commission.

Exclusive Agency

An alternative form, "Exclusive Agency", allows only the broker the right to
sell the property, and no offer of compensation is ever made to another broker.
In that case, the property will never be entered into an MLS. Naturally, that
limits the exposure of the property to only one agency.

Open Listing

This is an Agreement whereby the property is available for sale by any real
estate professional that can advertise, show, or negotiate the sale. Whoever first
brings an acceptable offer would receive compensation. Real estate companies
will typically require that a written agreement for an open listing be signed by
the seller to ensure the payment of a commission if a sale should take place.

Although there can be other ways of doing business, a real estate brokerage usually
earns its commission after the real estate broker and a seller enter into a listing
contract and fulfill agreed-upon terms specified within that contract. The seller's
real estate is then listed for sale, frequently with property data entered into a
Multiple Listing Service (MLS) in addition to any other ways of advertising or
promoting the sale of the property.

LIST OF PROJECTS

On going projects

Kalyan east: 5000- 6000/ sq ft

Kalyan west: - 6500-7500/ sq ft

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Shahad: - 4500-5000/sq ft

Ulhasnagar: - 5500-6000/sq ft

SWOT ANALYSIS

Strength Valuation of the different capacities.

Individual abilities reflected in a group.
Higher level of available resources.
Good levels of proactivity, assertiveness and
resilience.
Well-defined individual competences.
Well-defined action conventions.
An effective and productive real estate team.

Weaknesses High level of resistance and adaptability to changes.

Gaps in the organizational leadership.
Motivational problems of the staff.
Limited levels of the individual abilities.
The stress and the difficulties to process them.
Lacks in the social abilities and training.
Absence of organizational policies.

Opportunities Implement the new technologies in an effective way.

Weakening of the competition.
Strategic real estate visibility.
An effective use of the new ways of communication.
International real estate strategy.

Threats Take on high levels of risk.

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 Changes of the real estate positioning environment.
Changes in the real estate market.
Changes of the potential buyers preferences.
Eventual legal modifications.

Based on the SWOT model, the company potential and the potential of its real
estate team is the result of the combinations between the strengths and
opportunities. Once determined these two, we can detect the strategical lines of
action in order to get the best results.
In the same time, the limits of the real estate as an organization will be determined
by the combination between the weaknesses and threats that the applicable model
reflects.
It is highly important that the real estate clears the aspect of the risks that it should
assume in the organization and the risks will always be determined by the
combination between its strengths and threats. On the other hand, the challenges
that the real estate has to confront are determined by the result of the combination
between the weaknesses and opportunities.

NEED OF STUDY

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OBJECTIVE OF STUDY

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RESEARCH METHODOLOGY

Objective

To identify the factors affecting the value of real estate

To identify the main areas of investment in real estate

To identify current trends in real estate

To identify the factors affecting decision of investing in real estate

Hypothesis

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1. Null hypothesis: - The disposable income is the main factor that drives the
investment decision in real estate.

Alternative hypothesis: - The disposable income is not the main factor that
drives the investment decision in real estate.

2. Null hypothesis: - Government policies play a major role in real estate

investment

3. Alternative hypothesis: - Government policy does not affect the investment in

real estate.

Research Design

The data collected is primary data and secondary data which is quantitative
data, which was further analysed in order to draw conclusion and suggestions.

Sample

15 respondents were interviewed to conclude the result. The interview was

taken face to face and telephonically.

LIMITATIONS

Small sample size

The sample size was only 75 respondents which a very small size to base
aresearch and give conclusion about the whole sector.These respondents are
notsufficient enough to base our conclusion for the group of investors
Time bound research
The research was conducted in a short span of time.The responses of
therespondents may be affected by some particular situation prevailing at

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 that particular time. If the time duration would have been long it would have
gien thegeneral idea or perception of the investors.

Might get biased response

As discussed earlier that the sample size was small also considering that
theinterview were conducted in a short span of time, there is high probability
that therespondents might have given biased responses.

DATA COLLECTION

Primary Data

Questionnaire

Face to face interview

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 Telephonic Interview

Secondary Data

Internet

Journals

Books

Magazines

FINDING AND ANALYSIS

Findings and Analysis

The findings and analysis are based on the survey done on prospective buyers.
Thesurvey was conducted through the use of questionnaire. The following are the
findingsand analysis of the survey.

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 Age group of Investors

The respondent of the survey were mostly in the age group of 36-45 years i.e. 42%.
Followed by the people in the age group of 45years and above- 27%. 23% in age
group of 26 to 35 years and theleast were people in the age group of 20 to 25 years.
This showsthe type of sample that we are analyzing

Income Level

The above analysis shows that the people covered under the surveymostly included
people from the income group of 6-10 lakhs i.e.39% , followed by people with
income above 10 lakh- 33% and theremaining were in the category of 3.5 to lakh
and 2- 3.5 lakhconsisting of 22% and 6% respectively.

Preferred Investment Option

The above findings show that Real estate is a favored investmentoption among the
respondent by 36% followed by equity, gold andmutual funds by 34%, 18 % and
12 % respectively. This infers thetrust and the interest of the investors in Real
estate sector. Peopleare willing to invest in real estate be it a large investor or small
allof them try to invest in real estate sector in the ways convenient tothem.

Preferred investment in real estate

The above analysis shows that investors preferred investmentoption is residential

property by 38% .The next best option beingequity shares of real estate companies
by 25% followed closely bycommercial property with 24% and the least
investment is in REITwith only 13 % respondents investing in it. This analysis
clearlyshows that residential property is the most favored investmentoption
amongst the investors. The above analysis also shows that people are not investing
in REITs when asked the reason most the people were not even aware about it.

Factors effecting real estate investment decisions

The major factor that effects the investment decision is theDisposable Income of
the investor .which constitutes 28% of therespondents. The prevailing price of the
properties is another important factor it constitutes 22% of the respondents if the
price istoo high people avoid purchasing the property and vice versa. Priceis the
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major determinant factor followed by Bank rate at 18 % as itis very important for
people who are opting for loans from the banks ,as they need to assess whether the
investment is worth paying the interest on the loan or not. Then comes location at
17%followed closely by Government policies holding 12% of
therespondents.These policies are regarding taxes, subsidies, stampduties , FDI and
the like. Economies condition also effect around3% respondent

Perception about effect of recession

To see the effect of recession on the minds of people I asked themabout what
according to them was the effect of recession in the realestate sector in india.31%
respondents said that the projects weredelayed .22% said that people would have
stopped purchasing asthe recession was effected mainly due to real estate sector
and thatit has become a risky option to invest.20% people said that asrecession did
not affect the Indian economy at large so it does notaffect their investment
decision.19% felt that it was a good time to purchase real estate properties.8%
people felt that the cost shouldhave reduced .

Preferred time duration of investment

Around 34% people invested for a time period of 5-10 years ,followed by 28%
investing for a duration of 3-5 years.23% for long term i.e. for more than 10 years
and 15% invested for a timeduration of 1- 3 years. This analysis shows that people
invest inreal estate for long term which is around 5-10 years.

Better Future of Real estate

69% respondent feels that the Indian real estate industry has a bright future and
will increase in the coming days. Where as 20 % of the respondents feels the other
way round. 11% respondents wereneutral about the issue and said that the situation
will remain samewithout any change.Majority of the respondents are positive about
the future of the realestate industry.

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CONCLUSION

BIBLOGRAPHY

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