A PROJECT REPORT

ON
Real Estate

PASIA DEVELOPERS PVT. LTD.

Submitted In The Partial Fulfillment Of The

Requirement For Award Of The Degree

Bachelor of Business Administration BBA

To

Guru Gobind Singh Indraprastha University, Delhi

GUIDE: SUBMITTED BY:

Ms. Monika Bansal Lucky

(10620501711)
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BLS INSTITUTE OF TECHNOLOGY MANAGEMENT

Delhi- Rohtak Road, NH-10, Jakhoda, Bahadurgarh -124507

Batch (2011-2014)

CERTIFICATE

This is to certify that the project report titled Real Estate Industry is
submitted in partial fulfilment of the degree of Bachelor of Business
Administration at BLS INSTITUTE OF TECHNOLOGY
MANAGEMENT , is a bonafide project carried out by Lucky (10620501711)
under my supervision and guidance and no part of this report had been
submitted for the award or any other degree, diploma, fellowship or other
similar titles or prixes and the work has not been published in any scientific or
popular journal or magazine.

Monika Bansal
(Project Guide)
Date:

Counter Signed

Harsh Sapra
(Director)

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ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Real Estate

Industry”. The work would not have been possible to come to the
present shape without the able guidance, supervision and help to me by
number of people.

With deep sense of gratitude I acknowledge the encouragement and

guidance received by my organizational guide MONIKA BANSAL and
other staff members.

I convey my heartful affection to all those people who helped and

supported me during the course, for completion of my Project Report.

Lucky
BBA (GENERAL)

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TABLE OF CONTENT

S.No. TOPIC PAGE NO.

1 CERTIFICATE .....
2 ACKNOWLEDGEMENT .....

3 Chapter 1: Introduction (Real Estate) 06-09

4 CHAPTER 2: PROFILE OF THE COMPANY

5 2.1 REAL ESTATE GROWTH IN INDIA 10-13

6 2.2 PRESENT SCENARIO OF REAL ESTATE 14-15

7 2.3 FUTURE SCENARIO OF REAL ESTATE 16-19

8 2.4 MAJOR PLAYERS OF REAL ESTATE 20-28

9 2.5 REAL ESTATE FINANCE 29-41

10 CHAPTER 3: OBJECTIVE OF THE STUDY 42-43

11 CHAPTER 4: SWOT ANALYSIS OF THE COMPANY

12 4.1 SWOT ANALYSIS 44-45

13 4.2 BALANCE SHEET IN SWOT ANALYSIS 46-46

14 4.3 PROFIT AND LOSS ACCOUNT IN SWOT 47-47

ANALYSIS
15 4.3 CASH FLOW IN SWOT ANALYSIS 48-48
16 CHAPTER 5: METHODOLOGY 49-51

20 CHAPTER 6: DATA INTERPRETATION & ANALYSIS 52-56

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21 CHAPTER 7: FINDINGS & RECOMMENDATIONS

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22 CHAPTER 8: LESSION LEARNT 59-60
23 CHAPTER 9: CONCLUSION 61-62
24 BIBLOGRAPHY 63-63
25 APPENDICES AND ANNXURES 64-65

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CHAPTER: 1

INTRODUCTION
We are a Group of Young, Enthusiastic, Focused and highly motivated
Professionals, having good hands of experience in construction group
housing. Pasia Developers Pvt. Ltd. was incorporated in year 2012, with
a clear vision to be the top most housing and construction company in
the city strategic business unit. The entire team of NCF is committed to
deliver
As a result of it's initiative NCF transformed itself in to high performance
quality at par with the best in the industry maintaining the most exacting
standards and offering a complete peace of mind & Luxurious Life style.

At NCF, We strongly believe in Quality and Customer delight. We also

understand that "TIME IS MONEY". We are particularly conscious of
meeting all our deadlines well in time. Excellence in our trademark,
superlative is not just an idea. We transform the creative ideas of our
customers into reality. At NCF, we maintain a perfect balance between
Imagination, Elevation, Layout &Construction.

By having a state-of-the-art facilities and equipments along with high

caliber skilled work force NCF has been able to live up to the
expectations of all our customers till date during and even after
completion of all our previous projects. We also aim high to maintain the
same level of comfort in future too.

Now the entire team of NFC feel proud to announce and present you an
other exciting and most advance housing project at Pasia Developers Pvt.

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Ltd. is an ISO 9001:2000 certified
by JAS-ANZ.

PASIA DEVELOPERS PVT. LTD Incorporated With the Registrar of

Companies, Registration No.55-29460 with the main object of real estate
developers, promoters, infrastructure developers financers. The company
is having its office at, Noida, the . The company is having Two directors
namely Mr. Harsh Sapra, Mr. Gaurav Badhera .The management of the
company has decided to develop a group housing project in Delhi.. The,
land is duly got registered in the name of company and payment for the
purchase has already been made.. Govt. is planning to establish a
education area of 2500 acres which will be available. for national as well
international universities and other educational institutions. The area is
already attracted well known builders and developers which are
developing the area very fast.

The company is already in the business of construction and development

of Malls and developed and sold out two mall in Delhi

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Real estate has proved to be a real engine of growth. The real
estate sector in India is emerging as the next engine of economic
growth going by the fact that it is the second largest employer
next only to agriculture. It has significant linkages with several
other sectors and over 250 associated industries. According to
estimates, every rupee invested in this sector results in 78 paisa
being added to the GDP. Accordingly, a unit increase in
expenditure has a multiplier effect and the capacity to generate
income is as high as five times. For instance, if the economy
grows at the rate of 10%, the sector has the capacity to grow at
14% and generate 3.2 million new jobs over a decade. The sector
size is close to $12bn and grows at 30% per annum. Presently, it
is contributing 5% of the country's GDP and is expected to rise
up to 6% within three to four years.

The present project has been carried out with the objective of analyzing
the financial aspects related to the real estate.

BRIEF PARTICULARS OF THE COMPANY

1. Name of the
PASIA DEVELOPRES PVT. LTD.
Concern

I) Office Add: 617, 6th Floor, Wave Silver Tower , Noida-

2. Address
201301

3. Status Private Limited Company

4. Email Address harsh@pasiadevelopers.com

4. Name of the
Directors
a.) SH. HARISH SAPRA

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S/o Sh. Arjun dev sapra
R/o:- Wz-1813, F.F, Multani Mohalla , Rani Bagh-
110034

b.) SH. Gaurav Badhera

S/o Sh. MOHAN LAL
R/o SECTOR-8, ROHINI DELHI-110085

5. Main
Real Estate Promoter & Developers.
Objects/Activities

6. Projected 16111.00Lacs

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CHAPTER: 2
PROFILE OF THE COMPANY

REAL ESTATE:
The term real estate is defined as land, including the air above it and the
group below it, and any building or structure on it is also referred to as
realty. It covers residential housing, commercial offices, and trading
spaces such as theater, hotels, and restaurant retail outlets, industrial
buildings such as factories and government buildings. 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 real estate sector encompass the housing and construction
sectors also. The real estate sector in India has assumed growing
importance with the liberalization of the economy. The consequent
increase in business opportunities and migration of the labor force has, in
turn, increased the demand for commercial and housing space, especially
rental housing. Developments in the real estate sector are being
influenced by the developments in the retail, hospitality and
entertainment (e.g.: Hotels, resorts, cinema theater) industries, economies
services and information technology (IT) enabled services etc. The real
estate sector is a major employment driver, being the second largest
employer next only to agriculture. This is because of the chain of
backward and forward linkage that the sector has with the other sectors of
economy, especially with the housing, construction and commercial
sector. About 250 ancillary industries such as cement, steel, brick, timber,
building material etc are dependent on the real estate industry.

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REAL ESTATE IS A GROWING SECTOR IN INDIA

Real estate in India will continue to rock. Profound economic suggest that
the realty sector would grow at 30% per annum to reach to $45 to 50
billion by 2012 from the existing $12 billion. To achieve this growth real
estate in India would require huge investments over the next five years.
By 2015 it is projected that the market size would grow to $ 90 billion.

Estimated suggest that the urban housing sector would require

investments to the tune of $25 billion (Rs 1.10 lakh crore) over the next
five years. Prices have remained buoyant as new construction lags.
According to surveys there is a shortage of 19.4 million units (12.7
million units in rural areas and 6.7 million units in urban areas) in the
country about three years ago, which will require real estate in India. Real
estate in India will trigger economic growth infrastructure development
and enabling government policies would help trigger growth. Real estate
in India will help high economic growth has fuelled the demand for real
estate. Cities continue to attract interest from IT and ITES companies that
are either establishing a base or are looking to expand which will give
rise to real estate developer in India. It is the suburban locations that are
witnessing development activity due to easier availability of land
construction of large floor plate and offer of built to suit facilities thus

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helping housing construction company in India. According to one
estimate the IT and ITES sector are creating 200,000 jobs per annum
which itself will create a demand in commercial space of 15 million
square feet. Besides it will generate a huge demand for residential flats.
So more need for luxury residential apartments in India.

Real estate in India assumes that 25 % of the work force joining the
IT/ITES sector required independent housing there would be demand for
50 million sq ft of residential accommodation every year to meet the need
of the workforce joining the IT/ITES sector alone. The demand has been
aided by the ease in documentation and formality of property registration
in India. It leads to boost property developer in India. The Indian realty
sector would see unchanged interest from N R I’s aided by the relaxation
in FDI norms in real estate. The government has also helped by
permitting banks to advance home loans to N R Is. The report
acknowledges that the government had also played a pivotal role in the
development of this sector .

It had aided the sector by giving income tax benefits to consumer and
benefits to developers. It initiated the rationalization of stamp duty and
repealed the Urban Land Ceiling Act in 9 states. A number of state
governments are moving towards computerization of land records.

Real estate in India has a bright future .The report also pointed out certain
issues, which need to be addressed by the government to ensure rapid
growth. Some of the issues are absence of large listed companies in these
sectors, which has affected fund flow. Foreign still cannot buy or sell
undeveloped land, and reassessment of the legal aspect to stamp duty and
rent control. At last, changing demographics, low interest rate regime,
rising disposable income, and fiscal incentives have provided huge
demand for housing. Further nuclearization of Indian families has

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accelerate the demand for mortgages and for fresh housing thus
give rise to more real estate developer in India.

Political reforms in relation to real estate: The government is quite

rational when it comes to infrastructure and development in the country
as it is required to achieve and maintain a growth rate for the economy.
The real estate sector being directly related to it, is being given due
importance. The government has made suitable amendments in the FDI
regulations, taxation structures and various land acts in order to attract
more foreign investment into the country.

Economic factors: The lower interest rates and ease of credit availability
is fueling the demand for real estate in the country. This scenario coupled
with the huge potential for consumer credit penetration in India is
favoring the real estate sector.

Demographic factors: Demographic factors like increasing literacy

rates, higher disposable incomes, and increasing urbanization in the
country are important factors propelling the demand for real estate in the
country. The above factors are going to generate huge demand for
residential space, which comprises 80% of the total real estate demand in
the country.

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PRESENT SCENARIO OF REAL ESTATE IN INDIA

The real sector in India today witnesses a wide spectrum of changes that
slowly but surely is expected to make India in to a preferred destination
for real estate activity. The real estate market in India is opening up.
There are still some barriers to real estate development like unclear titles,
tenancy reforms and low property taxes. Two major steps taken by the
Government will however be key catalyst in fueling growth in real estate
sector in INDIA. Now with reputed builders like DLF, ANSAL API etc
and international property consultants joining the fray, this image has
strengthened and evolves into a professional corporate image. Recent
moves to allow 100% Foreign Direct Investment in India. FDI would be
in integrated township which would include housing, commercial
premises, hotels and resorts, while the urban infrastructure would
comprise roads and bridges mass rapid transit system and manufacture of
building material. The minimum average that can be developed is 100
acres designed keeping into consideration the local byelaws and
regulations. FDI is not allowed in retail sector. Currently, real estate
prices have stabilizes to a great deal as a role played by speculation has
started declining. There a lot of change being introduce in the Indian real
estate sector especially with the cheap labour, pool of people. Other major
event is the introduction of real Estate Investment Trust (REIT).

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Currently mutual fund are not allowed to have direct exposure in
real estate but can make debt and equity investment in the company. The
Indian version of REIT-REIS (Real estate investment scheme) would
enable investment by small investors in the real estate sector and thus
earn dividends on the rental income being paid. The fiscal incentives
introduce by government introduce 3 years ago have unleashed the
market forces. The credit of housing has gone up and interest rates have
come down to 8-9% average. With fiscal incentives and factoring
inflation the real interest rates on housing loans is very less. This has
brought in a sea change in the profile of the home purchaser across the
spectrum. The average age of the home buying customer has been
drastically reduced. It has been found that young working people in early
and mid 20 also buying residential flats. The other major changes
witnesses in the real estate industry currently are the reorganization of
country status itself. The Government of India has made it mandatory that
3% of the incremental deposits of the banks would be deployed to the
housing industry. Today real estate office market is booming IT AND ITE
‘s segment. With lower operating costs being the driver office property
have moved from Central Business Districts to suburbs to Class I cities
and this market is continue to expand in Tier II and tier III cities. Real
estate sector is still facing the main problem of high stamp duty in Indian
states. These range in most Indian cities between 10% to 15% Some
states even have double stamp incidence first on land and then on its
developments even National Housing and Habitat Policy 1998
recommend stamp duty of 2-3%. It needed to be reduced by taking the
recommendation into consideration which is mentioned in the report
otherwise this increasing rates of stamp duty and land cost will give rise
to parallel economy which lead to huge loss of government revenue.

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FUTURE SCENARIO OF REAL ESTATE IN INDIA

In future the real estate sector will be in very good shape as the demand
for both residential and non-residential property is increasing and in
future more houses need to be developed in urban and rural areas as
census of 2001 indicates that urbanization rate of 27.78% is expected to
go up to 41%(550 million) in the next 20 years (population of 1350
million by 2021).However, Indian government Habitat Policy(NHHP)
envisages that by the year 2012 the housing shortage should be removed
and everybody should have a house of his own and to meet this target the
estimated investment involved is approximately Rs 400000 crore or say
US $800 billion by 2012.In future the demand for real estate will likely to
touch around1055 million sq ft by 2010 and by this date capital
requirement will have bloated to $68 billion and market will require $ 30-
40 billion more in future with most companies tying up their expansion
plan. The C&W says urban India alone require 12 million housing units
with scope of 400 townships in 5years across 30-35 cities each with 5
lakh population and Indian has potential to grow to those levels as FDI
flows into more land intensive sector like retail and manufacturing as
there is a shortage of 20 million housing units till
2010.Cushman&Wakefield says smaller towns like Patna, Surat,
Lukhnow, Coimbatore, Vijayawada etc have immense potential in
commercial and residential sector and by 2015 there will be 45 such cities

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from 25 odd cities. The US alone committed $ 2 billion for Indian
real estate over next 18-30 months. In real estate sector 23 million sq ft of
new space came in to market with additional 50 million sq ft expected by
2009.

AMAZING BOOM IN COMMERCIAL SECTOR:

Future of commercial sector is boom. There is a great demand for office

building in India. The demand for new office space alone has grown from
estimated 3.9 million sq ft in 1988 to over 16 million sq ft in
20045.Cumulative demand for office space in India between 2005-2008
is estimated to be in excess of 85 million sq ft. This represent annual
growth rate of 14.5% over the next 3 years or approx.20 million sq ft/year
and approx 80% of demand is created by IT AND BPO sector. ITES &
BPO segment register a growth of 54%. NASSCOM & Mckinsey study
has predicted that I T Es sector in India will provide additional job for
over 1.1 million people by 2008, which translate into space requirement
of approx.100 million sq ft. Retail is considered the world largest private
industry with total sales of over US $ 6.6 trillion with close to 12 million
outlets. India has the largest retail density in the world .It is estimated that
presently additional 46 million square feet for malls, multiplex is being
added in India out of which 32 million sq ft is spread over across 7 major
cities. In future 45 malls with over 9.5 million sq ft of retail real estate is

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expected to come up in Tier II cities like Jaipur, Chandigarh,
Ludhiana, Nagpur, Baroda, Kochi etc by end of 2007.It is expected that
government will soon permit FDI in retail and this would further increase
the demand for shopping malls, multiplex etc. However opening up of
FDI in retail trading will not necessarily cause rent to rise as their demand
will be offset by additional stock.

Spiraling land prices (sign of overheating and excessive speculation):

The land prices have really shot up in the last 2-3 years. Builders continue
to get enough buyers for whatever absurd prices they quote. Now, that is
a very strange thing when seen in the Indian market perspective. India is a
very price-sensitive market. Whatever you sell you have to give the
consumer a good value for money. So, when such people make a beeline
for things priced exorbitantly, there may be large amounts of speculative
investment money entering the market. Also, people now assume that
property prices moving up is a sure thing. There is nothing called a sure
thing in investing and this is a sign of overheating.

Uneven price growth: Prices of real estate across the country, or even
within cities, will have their own unique demand and supply factors. This
needs to be understood in detail. A number of transactions and also
corporate land bank values are ignoring this basic tenet of real estate
investing.

Questioning the capability to deliver: Although there have been huge

plans of development in all the areas of real estate development whether
residential, commercial, office, retail or SEZ, various questions have been
raised on the execution capability of the developers in delivering the
promised product within the specified time period.

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Oversupply: With the real estate story getting big in India, major
plans are afoot for various types of real estate developments in big cities
and small towns. There have been concerns of an oversupply situation
arising 2-3 years from now.

Still unorganized: India's property market remains unorganized and

underdeveloped. This creates risk for investors. In the absence of a clear
title to property, the risk of litigation is high. For those foreigners who
invest in India via real estate investment trusts, there are no rules on the
marking of their stakes to market or on whether they must pay stamp duty
on transactions.

Relation to the stock market: The true origin of this bubble-like

situation may be traced to the stock market boom. The Indian stock
market has been witnessing a non-stop bull run for an unusually long
time. During the last couple of years, share prices have surpassed all
expectations. The present situation can be compared to Japan's real estate
crash in 1991. Prior to the crash, both the stock market and the property
market were on fire. Profits from the stock markets used to be transferred
to the property market and vice versa. The same thing is happening in
India as well.

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MAJOR PLAYERS OF REAL ESTATE MARKET IN

DELHI COMPETING MAXHEIGHT CONSTRUCTIONS

UNITECH LIMITED

Unitech is the largest listed real estate company in India with a market
capitalization of over US$5bn. It operates in India and exports engineered
construction products to the Middle East. Unitech was among the first
players to enter organized infrastructure development. Unitech works
closely with various state governments to develop SEZs across the
country. New Kolkata International development project is one of the
largest infrastructure development project undertaken in the country.
Unitech has tied up with International Amusement to create "E-city" in
Noida. Its business strategy is to build a Pan-India presence while
maintaining a leadership position in each city of India.

DLF UNIVERSAL LIMITED

DLF is a leading player in Indian real estate industry with six decades of
experience. Since its establishment in 1946, it has developed 21 urban
colonies aggregating 5,816 acres, as well as an entire integrated 3,000-
acre township which is popular as DLF City. Future projects include
development of 100,000 acres over the next few years and it aims to
become the single largest real estate company in the country.

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ANSAL PROPERTIES & INFRASTRUCTURE LIMITED

Ansal Properties & Infrastructure Limited (APIL), one of the major

players in real estate industry, is promoted by the Delhi-based Ansal
Group engaged in civil construction and real estate development in India
and overseas. In March 2006, APIL tied up with Malaysia-based facilities
management company Faber Group Berhad in a joint venture to foray
into healthcare facilities management. HDFC realty bought 33% of Ansal
SPV. APIL has big plans to invest Rs.30,000cr in the next 3-4 years to
build 16 townships.

As the focus on infrastructure development by the government has been

strengthening, growth prospects of Indian real estate sector looks bright.
A study by housing development finance reveals that India is short of 20
million housing units. Deutsche Bank researchers forecast that by 2030
India will need up to 10 million new housing units per year. Another
driving factor for the industry is SEZs, which come with tax exemptions
like 10-year corporate tax holiday. Besides this, the fifth most attractive
market in the world, the retail market of India, has also been contributing
significantly on a large scale for the growth of the sector. Leading
national and global players have big plans to invest in the infrastructure
and construction of the retailing business.

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All these positive signals indicate that there is huge growth
potential for the real estate industry. Joint ventures and consolidations
will become the order of the day in realty space. However, there are
challenges like fragmented industry with less transparency and high
transaction costs. The condition can be improved with the increase in the
professionalism of the industry and flow of organized money into the
sector. Given its huge growth potential, real estate can be vindicated as
the best investment avenue for long-term investors.

The following is the overall assessment about the real estate industry in
India-
Real estate sector is a major contributor to GDP (Gross domestic
product of India), over the last decade, the average household income in
urban areas has grown at a CAGR of 5%. According to estimates, 80% of
the real estate developed in India is residential space and the remaining
20% comprises of offices, shopping malls, restaurants and hospitals.
According to the 10th Five Year Plan, there will be a shortage of 22.7
million housing units by the year 2007. The changing lifestyles of

Indians and better incomes have led to the development of retail and
hyper malls. This, in turn, has led to the demand for space from the retail
sector.

Real estate has proved to be a real engine of growth The real estate
sector in India is emerging as the next engine of economic growth going
by the fact that it is the second largest employer next only to agriculture.
It has significant linkages with several other sectors and over 250
associated industries. According to estimates, every rupee invested in this
sector results in 78 paisa being added to the GDP. Accordingly, a unit

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increase in expenditure has a multiplier effect and the capacity to
generate income is as high as five times. For instance, if the economy
grows at the rate of 10%, the sector has the capacity to grow at 14% and
generate 3.2 million new jobs over a decade. The sector size is close to
$12 bn and grows at 30% per annum. Presently, it is contributing 5% of
the country's GDP and is expected to rise up to 6% within three to four
years. Along with the residential property, the sector has also witnessed a
spurt in demand in commercial property mainly driven by fast-growing
IT and ITES services along with BPO boom. According to estimates, 42
million sq. ft. of space will be required every year till 2010 only in these
services in cities like Delhi, Bangalore, Chennai, Hyderabad and Pune. As
the cost of land in leading metros is skyrocketing, developers are getting
interested in developing townships in Tier II cities and industrial towns
where the growth of real estate is relatively slow. It is expected that in the
very near future, even these cities will witness abnormal prices.

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THE KEY DRIVERS IDENTIFIED BEHIND THIS
GROWTH ARE-IN CASE OF RESIDENTIAL PROPERTY:

Higher affordability (higher salaries, easy credit); tax benefits to

borrowers; existing shortages; social structural changes in urbanized areas
(splitting of joint families).
In case of Commercial: IT/ITES sector expansion, the local
consumption story leading to higher growth in corporate earnings; order
books full; corporates expanding, multinationals entering India to service
huge “middle class”.
In Retail sector: Getting organized (3% of retail is organized as against
17% in China); foreign brands and local brands seeking visibility, new
formats being developed; disposable incomes rising; younger population
earning and spending well.
In terms of infrastructure Indian real estate sector is relatively poor
to global standards: If we compare Indian real estate sector with the
global real estate industry, we fare very poorly in terms of our
infrastructure. While in the US, no matter where you go, you have access
to high quality infrastructure (drinking water, well-planned roads,
greenery, power, communications, healthcare, education, etc.), here in
India, even our signature cities are crumbling. We have not been able to
create alternate cities in the manner that is required so as to release the
pressure on the few that we have. Until new towns/cities come up, the
few existing ones will continue to provide sub-standard quality of living
and at very high prices. Another sharp contrast is in the sphere of public
housing. While more than 50% of Mumbai lives in slums, most of
Singapore lives in (subsidized) mass housing provided by the
government.

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Whether this boom will sustain or not, the answer could be both a
yes and a no. Yes, because of the above mentioned positive drivers. No,
because a lot of factors/events can spoil the party; such as, an increase in
interest rates globally and locally, a political directive (overseas) to
reduce outsourcing to India, the emergence of China as an alternate
outsourcing
hub, a major terrorist attack, the policies of the government with respect
to land and real estate supply, property prices becoming unaffordable,
etc.Already in some locations it appears that the cost of land is way too
high in comparison to the finished product, and there is a price limit
beyond which resistance can set in. Therefore, there is a risk of having
unsold inventory at a high cost. In some sectors, there is a re-emergence
of the “investor” in large proportions. Hence, when the stock comes in the
market for absorption in large volumes, will there be actual users to
absorb it? That is still to be seen. On the retail front as a whole, though
we (as a country) have barely scratched the surface of organized retail, I
feel that in some locations there is an excess supply of mall space coming
up. With terribly poor efficiencies and very high running costs, not to
mention a complete lack of differentiation, it’s a matter of time before
these malls will come back in the market to be repositioned. Today, there
is a feeling of success seeing “footfalls” by the thousands, which reminds
me of the internet days “eyeballs”—plenty of visitors, poor conversion
into shoppers.

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BUYERS PERSPECTIVE:
1. Quality of Construction – Obviously when one buys a property he
makes sure that the quality of construction is good. Everyone while
buying a new product wants to buy quality stuff. Same applies to the
property. Every buyer wants to buy a well built house.

2. Pollution Free Environment – The immediate surroundings of the

property is always evaluated by the buyer. These days developers give
due importance in making the surroundings beautiful with innovative
and creative landscaping. They involve landscape architects from
different corners of the world to give their customers the best. The
NCR is becoming more and more popular among home buyers
because of its greenery and pollution-free environment.

3. Water Availability – Water Availability, power backup and safety and

security are some very important factors which people do consider
while purchasing the property. All these factors are hugely responsible
for the transition of people from Delhi to housing complexes in NCR
as many colonies of Delhi faces problem of shortage of water and
power failure while availability of these essential facilities are ensured
in housing complexes by the respective developers.

4. Occupancy - Due to increasing crime this factor is becoming more

and more important for the buyers. They don’t want to settle down in
such a place where hardly anyone else lives. People prefer to stay in a
reasonably well-occupied housing complex. But its also true that
people don’t prefer to stay in highly populated areas as it was
observed in the case of Shipra Sun City, Ghaziabad where 5000

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families living in one single housing complex fight for space
and car parking place.

5. Suitability of Home Type – Nowadays due to the wide range of

options available people can afford to be choosy. Now they don’t need
to compromise on anything. They don’t buy a property till the time all
of the essential things match their requirements. Developers do pay
attention to the different requirements of different customers. Some

want a flat on the second floor while some want a flat with two
bedrooms. All these requirements are tried to be met by the
developers.

6. Sport Complex / Recreational Facilities – “All work and no play

makes Jack a dull boy”. People have started believing in this concept.
Now each parent wants that within the complex his/her kids get all
kind of sports to play. Even adults want different recreational facilities
to be available in the housing complex, which may help them in
eliminating work stress.

DEVELOPERS PERSPECTIVE:
1. The major external factors which people consider while purchasing
the property are Price, Availability of loan and Proximity to
workplace.

2. The major In-Locality factors which people consider while purchasing

the property are Quality of construction, Availability of water and
Pollution-free environment

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GLOBAL SCENARIO IN REAL ESTATE INDUSTRY

Real estate industry in developed countries has been mature while it has
been a growing market with huge potential in developing countries like
India. Anuj Puri , Managing Director of Trammell Crow Meghraj Private
Limited opines: "Globally, these funds are very popular, especially in
developed economies such as the US, Australia, and Japan. They have
given excellent risk-adjusted returns. As per NAREIT, the five-year
compounded annual growth rate (CAGR) on such funds is 12.1%. In
Japan, this is 15.5%. This compares well with equity mutual funds. For
real estate, the risk is lower than equity." Real Estate Investments Trusts
(REITs) in the US are the trusts established by wealthy promoters who
usually invest in shopping malls, office spaces, commercial complexes,
hotels, and warehouses. The origin of REITs dates back to 1960 and has
gained popularity over a period of time. These trusts make profits either
by rental income or by capital gains resulting from sale of property. To be
qualified as an REIT, the company is liable to distribute 90% of its
income to the shareholders. This will in turn help the company to get
exemption from taxation. Based on the source of income, REITs are
categorized as equity REITS, which earn by owning and renting the
properties; Mortgage REITS, which earn by way of loans; and Hybrid
REITS, which earn by both the means. REITs offer ample liquidity to the
investors as REITs shares are usually listed on the major stock exchanges.

29
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REAL ESTATE FINANCE:

Property prices in India are rising fast, and not just in the biggest cities.
As the tech boom spreads across the country, as more Indians buy homes,
and as the economy grows at faster than 8% a year, real estate is
attracting more investors, many of them from abroad.

"India is one of the last few countries where there is primary demand for
real estate rather than individuals trading up," says Rajiv Sahney, who
runs the India operations of New Vernon Advisory, a $1.4 billion New
Jersey hedge fund. Merrill Lynch forecasts that the Indian realty sector
will grow from $12 billion in 2005 to $90 billion by 2015. "India is the
most exciting real estate market in Asia," says Michael Smith, head of
Asian real estate investment banking at Goldman Sachs. "It's one of the
last major countries in Asia with an improving market."

That improvement worries some. Concerns about an asset-price bubble

have led the Reserve Bank of India to raise the risk weight age on real
estate loans extended by banks, and mortgage rates have gone from 7.5%
to about 9.5% as a result. That's still well below the 15% rates that most
Indians were used to, but it's enough to raise questions about whether the
speculation of the past year and a half, which has driven land prices up by
30% to 100% and real estate stocks up as much as 2,000%, may be
coming to an end.

The run-up in prices has attracted the likes of Morgan Stanley, which has
invested $68 million in Mantri Developers, a midsized construction firm
in Bangalore, and Merrill Lynch, which invested $50 million in
Panchsheel Developers, a regional builder. Foreign companies have also
poured money into funds that invest in Indian developers. GE

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Commercial Finance Real Estate, for example, has invested $63
million in an $800 million fund that is building IT parks, and Calpers and
the Oregon Public Retirement Fund have invested $100 million each in
the IL&FS India Realty fund.

Real estate funds set up to invest only in India have already raised more
than $2.7 billion. And new funds worth as much as $4 billion are being
planned by J.P. Morgan, Britain's Knight Frank, and other foreign
investors. Warburg Pincus, the largest private-equity investor in India,
says it is spending nearly a third of its time studying opportunities in this
area. And Deutsche Asset Management recently hired someone to head its
real estate activities in India. "As the largest active managers of real
estate funds in the world," says Edouard Peter, head of Deutsche Asset
Management Asia Pacific and Middle East, "we expect to be actively
raising and investing funds in real estate in India."

It isn't going to be a cakewalk. "It's not easy to do business in India," says

Seek Ngee Huat, president of GIC Real Estate, an arm of the Singapore
government that is planning to invest several hundred million dollars in
Indian real estate over the next two years. "It's difficult finding suitable
partners who have the same long-term objectives, as most firms are small
and family run."

Already margins have shrunk. "The vast majority of the planned real
estate funds are targeting annual rates of return of between 25% and 30%,
but I'm skeptical that the vast majority will cross 20%," says Mumbai real
estate advisor Rajiv Bhatia.

To achieve the target returns, several funds are focusing on second-tier

towns and second-tier developers. "Many investors are going to lose their

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shirt here, as it's an opaque market, and a wrong partner can easily
do you in," says S. Sriniwasan, executive director at Kotak Mahindra
Realty fund in Mumbai. There's also bureaucracy and corruption to deal
with. Says Ashwin Ramesh, who runs a boutique fund called Primary
Real Estate Advisors: "There are a couple of hundred malls currently
being developed across India, and predictions are that only 10% will be
successful. Yet every developer feels his mall will be among the
survivors."

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REAL ESTATE INVESTMENT

A recent report by the Chamber of Indian Industries pointed out that
globally real estate is and should always be considered as an income-
generating asset. Indeed, real estate is an attractive investment option, as
it gives regular returns and also provides capital appreciation. This
scenario is presently unfolding in India.

Before the start of the 1990s, real estate was always looked upon as a
place to invest money, since prices were always escalating because of
limited supply and heavy demand. Developers were building residential
and commercial projects, which were sold out even before the
construction began. Besides, during the course of construction, the
property changed hands several times before the completion of the
project, with further price increases.

But, those days are gone with the crash of the housing market in the mid
1990s. The higher the rise in real estate prices, the steeper the fall. This
was true, especially, in the metros, e.g. Mumbai and New Delhi. The
supply increased enormously and the demand remained steady, as prices
had gone beyond the realistic levels. This decline in prices stabilised
towards the end of the decade as rates became more reasonable and
affordable.

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 34
In the meantime, the housing finance industry started to expand
rapidly, making home loans easily available to everyone. Besides the
housing loans boosting the market demand, the tax benefits provided by
the last four consecutive budgets have also encouraged the end-users and
investors alike. Growing incomes of urban buyers coupled with fiscal
incentives and falling interest rates, has seen disbursements by Housing
Finance Companies grow at over 35% per annum in the past few years,as
shown in fig 1.

Figure I

To evaluate real estate as an investment option, use the following

guidelines.

 Check out the various loan options to raise the finances.

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 Ensure that there is scope for infrastructure development

around the property under consideration.

 Another factor is the location and the proximity to schools, hospitals,

markets, public transportation, etc.

 Check out the rental returns and capital appreciation potential in the

area where the property is located.

 Actual property taxes to be paid.

Finally, ensure that you are able to maximize the tax benefits to the limit.

The rental rates in India are among the highest in the world as returns on
investment on the capital value of the property. Figure II compares the
rental returns for various cities all over the world with the Indian cities.
Investment in commercial property, where the returns are 10 to 15 per
cent, is a proven option, while residential property is always in demand
for leasing.

Figure II

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 36

Since the 9/11 attack in the US, investments in Indian markets have

gathered pace. India has encouraged Non Resident Indians (NRIs) with
tax incentives and relaxation of foreign direct

investments (FDI) rules. The sudden change in sentiments is clearly

visible in India’s bulging foreign exchange reserves, which are at a record
high of over 60 billion US dollars. And the RBI has relaxed the rules
further for NRIs with respect to repatriation of foreign exchange on real
estate investments. Besides being a safe destination, India offers 10 to 12
per cent returns, perhaps the highest in the world. 30 per cent of all high
major real estate transactions in Mumbai are accounted by NRIs.

Moreover, with increasing volatility in stock markets and falling interest

rates, many investors have started considering investment in commercial
and residential properties. The bottom-line is that this is the time to go

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shopping for property; as the market has started firming up
already. As the organised market develops, real estate as an investment is
one of the better options available today. As Naresh Malkani, CEO of
Indiaproperties, says, “Considering the current property rates and housing
loan interest rates, it is worth investing in real estate in India.”

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EXTERNAL ENVIRONMENT
Commercial which ranks next only to food and clothing amongst basic
human needs has always had and continues to have important socio-
economic implications. Especially in countries like India which are in
the throes of rapid development housing has come to assume a crucial
role as it contributes significantly to the national economy and nation
building. Arguably, housing has been the only industry in recent times
which has not only withstood the recessionary pressures, but has also
shown a consistent and healthy growth and if the future is to be
interpreted in light of the macro picture, the best is yet to come.

Housing and GDP are interlinked and contribute to each others’ growth. It
is, therefore, no wonder that ‘Housing for All’ is invariably proclaimed as
a national priority by all major political parties and adopted as a goal by
the Government of India in the National Housing and Habitat Policy
document. Integrated housing development not only satisfy the basic
human needs but also facilitates holistic development within the
parameters of a planned welfare economy. Safe, secure and affordable
housing by any means increases employment and educational
opportunities for individuals and enriches communities leading

to a better civil society and better quality of life. Besides the direct
contribution which housing makes to GDP it increases social capital
which is intelligible wealth that comes with good social network at the
heart of which lies clean environment, hygienic living and quality
housing.

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India, with its billion plus population, still witnesses an acute
shortage of dwelling units. Despite sharp increase in the Usable Housing
Stock from 70 million units in 1961 to170 million units in 2001, the
shortfall in 2001 was estimated at 19 million dwelling units, although
unofficial estimates peg the figure at higher levels. This has occurred due
to the high population growth, especially in urban areas. Studies reveal
that the population in the five most populous cities of India, namely
Mumbai, Kolkata, New Delhi, Chennai & Hyderabad are set to increase
at a scorching pace of more than 50% between 1995 and 2010 and by
2025 the number will be more than double. The 2001 Census reveals that
the decadal population growth in the urban areas is one and a half times
higher than the national average. All these statistics point to a high level
of migration of population from rural and semi urban areas to a more
urbanized form of settlement. The percentage of population staying in
urban areas have steadily climbed from 23.34% in 1981 to almost
28% in 2001. As on 2001, more than 5000 centres have been identified as
“urban centres” in India.

Coupled with the demand for dwelling units, another major factor which
has contributed to the buoyancy of Housing activity is the affordability of
properties. This, in turn, has been the result of a combined effect of
stabilized property prices, higher level of incomes and lower cost of
borrowings. In fact the boom witnessed by the Housing Finance sector
can be heavily attributed to these factors.

Housing has often been called the “Engine Of Domestic Growth” of the
Economy. An investment in Housing and construction triggers of a series

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of investments in various sectors. From Heavy Industries like
Steel, Cement to industries like Paint, Furnitures and even to Small Scale
Industries, Housing affects as many as 269 industries directly and
indirectly. Housing ranks third amongst 14 major industries in terms of
total linkage effect in the Economy. The linkage effect, particularly with
reference to the Steel and Cement Industries was also underlined by the
Government in the Economic Survey of 2002-2003.

In terms of contribution to the GDP, for every rupee invested in Housing

and construction, 78 paisa gets added to the GDP. Housing ranks fourth in
terms of the multiplier effect on the Economy, ahead of sectors like
transport and agriculture. The Investments in the Housing sector has
steadily increased from Rs. 1150 cr in the First Plan period to more than
Rs. 1,20,000 cr in the Ninth Plan period. Estimates of the Tenth Plan peg
the figure at about Rs. 7,00,000 cr.

Perhaps the greatest socio-economic impact of Housing is in employment

generation. Housing is the second largest employment generator in the
country after Agriculture. A host of vocations and professions derive their
livelihoods from Housing, either directly or indirectly. Construction
workers, builders, developers, suppliers, civil engineers, valuers, property
consultants, furnishers, interior decorators, plumbers – the list is virtually
unending. In a developing nation like ours, Housing can be the solution to
the most nagging problem that any Government faces – that of
employment. Apart from these various indirect benefits that the economy
derives from Housing, the Government itself is a direct beneficiary in

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terms of collection of stamp duty rising out of acquisition of real
estate assets.

It is therefore not surprising that the Government has left no stones

unturned to support Housing activities. The continued tax incentives on
Housing Loans to trigger a higher off-take in credit for retail Housing is a
reaffirmation of the Government’s committment to aid the sector. Other
initiatives like extension of benefits u/s 80 I to mass housing projects,
scrapping of the Urban Land ceiling act, implementation of the
Securitization Act are all in line with the same objective of propelling
growth through Housing. However, it may also be added here that there is
scope of further improvement in various areas , mainly with reference to
streamlining of laws related to construction activities and rationalizing of
stamp duties on transfer, securitisation, etc.
When one looks at the future, the ‘big picture’ appears to be very bright.
A comparison of the Mortgage Finance to GDP ratio places India at the
foot of the table with a penetration rate of less than 2% , lower than the
9% of Thailand, 36% of Singapore and 51% of USA. There is thus much
room for the upside and a long way to go.

With the population of India steadily increasing, it will not be long before
India overtakes China and emerges at the top position. Demographic
experts have predicted India’s working age population – the segment
which has the highest demand for Housing – to be the highest. This
ensures that the demand for Housing is a long and sustained one. Rapid
strides in Infrastructure development like the Golden Quadrilateral
Project and the National Highways Development Programme, which have

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progressed at an impressive speed is bound to trigger off a fresh
round of Housing and habitation through further development of semi
urban and rural areas as well as setting up of new Satellite Townships.

To sum up, a reference to the Goldman Sachs Report on the Development

of the “BRIC Economies” can be made, wherein India is projected to
have the fourth largest Economy in less than 30 years time from now. In
order to achieve that level of growth, it is imperative for the Housing
Industry to continue its contribution to the economy at an increased pace
in the future as well.

INTERNAL ENVIRONMENT

The last three budgets have provided enough incentives and the drastic
reduction in interest rates, making easier for the common man to achieve
his distant dream of a home come true. But on the supply side very little
has been done to ensure that developers who are the producers of homes
get access to the required funds. It is conferences like these that helping
us carve out solutions for a better tomorrow.

The trade and industry was fairly to blame in the 80’s when there were
not many professionals in the building trade. It is still one of the largest
unorganised sector in the country, but slowly companies deeply
committed to housing are becoming more responsible, accountable and
transparent.

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Like other industries, real estate developers are also processors
and producers of goods (i.e. the home) which is a tangible product and
has enormous cost from concept to completion. It is impossible for any
developer firm to bear the entire cost, hence the need for real estate
financing. The customer preferences have moved away from under
construction to nearing completion or completed projects and hence the
investments in the projects have changed.

Strangely other industries get financed by the same financiers for process
as well as end product (i.e. the automobile industry). The banks and
Financial Institutions have exposure to the producers and the purchaser
but when it comes to developers the very same Financial Institution shy
away. Now coming to the issue of funding developers – norms have been
laid out and rating should be made mandatory. The one time pure vanilla
product “construction finance” is no longer available and it has out lived
its purpose. Now the time has come for innovative products as the market
conditions have changed in the past 5 years. Receivable discounting - is
one option where projects in advanced stages can be financed. The
balance amount receivable against sold flats can be financed by Housing
Finance Institutions/banks (practice which is being followed) to infuse
liquidity and enable developers to complete the project within stipulated
time period.

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CHAPTER:3
OBJECTIVES OF THE STUDY

 To find out the reasons for transition of people from Delhi to National

Capital Region (NCR).

 To find out the perception of people about the cities included in NCR

namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad

 To know the degree of importance of various factors which people

consider while purchasing a house.

 Designing, developing, managing and leasing real estate properties.

 The sale and purchase of shares and bonds of real estate companies only
for the account of the company in the State of Kuwait and abroad.

 Preparing studies and providing consultations on all types of real estate

fields.

 Owning and managing hotels, health clubs, tourism developments, as

well as leasing and renting them.

 Performing maintenance work related to buildings and real estate owned

by the company, including performing civil, mechanical, electrical, lifts
and air-conditioning work to guarantee maintenance of the buildings and
their safety.

 Organizing real estate exhibitions.

 Organizing real estate auctions.

 Ownership, management and leasing of commercial properties, office

space properties, mix-use properties and residential properties.

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 Establishing and managing real estate investment funds.

 Utilizing financial surpluses available with the company through

investing them in financial portfolios, managed by specialized companies
and authorities.

 Direct contribution in laying down the infrastructure of residential,

commercial and industrial areas and projects according to the build,
operate and transfer system (BOT), and managing commercial utilities
according to the BOT system.

Objective is to advance opportunities for people in real estate by:

providing lifelong learning and representing and promoting the real
estate industry and profession.

Our Institute is designed to help provide a way for anyone who desires to
get into the Real Estate business and maintain a successful career. Our
classes provide ways for anyone, business people, full-time
parents, retirees and college students. Our philosophy is: There is no such
thing as impossible, you just have to make it happen! Our goal is to
provide quality education in a timely manner and in a way that will foster
learning for the students. We will teach you what you really need to know
not only to pass the exam but to be a successful realtor.

It does not only know the right information; it is about learning the right
techniques for successful studying. You will be surprised at how quickly
you will catch on and actually enjoy what you are studying. The course is
extremely difficult... most people find it overwhelming and eventually
drop out.... there is simply too much information to take in...
The pass rate for the exam is less then 50%...

Our Real Estate Tutors are professional who know not only what it takes
to pass the exam, but how to make the learning experience fun.

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CHAPTER:4
SWOT ANALYSIS OF THE COMPANY

SWOT ANALYSIS
The following is an example of a SWOT (strengths, weaknesses,
opportunities and threats) analysis conducted by a business trying to
decide if they should introduce a new product to their range.
The SWOT analysis does not cover the entire business, just the factors
that may influence their ability to introduce a new product.
To get the most out of the SWOT, they have made specific statements in
each category. For example, rather than simply list 'competitors' as a
threat, they have included specific details about how their competitors are
a threat.
Once you have read through this example SWOT analysis, you can delete
the entries that do not relate to your business, and type your responses to
build a SWOT analysis for your business.

Internal environment
Strengths (S) Weaknesses (W)
 Excellent sales staff with
strong knowledge of existing
products
 Good relationship with Currently struggling to meet deadlines
customers - too much work?
 Good internal High rental costs
communications Market research data may be out
 High traffic location of date
 Successful marketing Cash flow problems
strategies Holding too much stock
 Reputation for innovation Poor record keeping

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External environment
Opportunities (O)
 Similar products on the
market are not as reliable or are
more expensive
 Loyal customers
 Product could be on the
market for Christmas
 Customer demand - have
asked sales staff for similar
product
Threats (T)
Competitors have a similar
product
Competitors have launched a
new advertising campaign
Competitor opening shop nearby
Downturn in economy may
mean people are spending less

In the above example, each category of this SWOT analysis could be

expanded. The business can then assess the results to decide if they can
use their strengths to take advantage of the opportunities and introduce
the new product. After assessing the results, they may decide that the
weaknesses and threats need to be addressed before they can make any
changes to their existing product line.

When you have completed your SWOT analysis you should review the
results to help you decide the next step for your business.

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Balance sheet

Prestige
Real DLF Oberoi Realty Godrej Prop
Estate
Mar '12 Mar '13 Mar '13 Mar '12 Mar '12
Sources Of
Funds
Total Share
94.80 339.74 328.23 328.07 78.04
Capital
Equity Share
94.80 339.74 328.23 328.07 78.04
Capital
Share
Application 0.00 0.00 0.00 0.00 0.00
Money
Preference
0.00 0.00 0.00 0.00 0.00
Share Capital
Reserves 5,687.71 14,274.46 2,178.15 1,798.95 1,321.55
Revaluation
0.00 0.00 0.00 0.00 0.00
Reserves
Networth 5,782.51 14,614.20 2,506.38 2,127.02 1,399.59
Secured Loans 703.00 10,785.98 0.00 1,100.73 354.73
Unsecured
125.42 315.05 0.00 16.11 764.14
Loans
Total Debt 828.42 11,101.03 0.00 1,116.84 1,118.87
Total Liabilities 6,610.93 25,715.23 2,506.38 3,243.86 2,518.46
Prestige
Real DLF Oberoi Realty Godrej Prop
Estate

Mar '12 Mar '13 Mar '13 Mar '12 Mar '12
Application Of
27.68 2,667.55 616.29 646.83 25.14
Funds
Gross Block 13.89 640.48 70.50 217.95 12.19
Less: Accum.
13.79 2,027.07 545.79 428.88 12.95
Depreciation
Net Block 0.00 2,542.55 380.43 126.35 22.21
Capital Work in
3,951.95 6,876.55 379.53 728.76 283.51
Progress
Investments 26.77 8,875.60 588.20 1,200.41 257.36
Inventories 0.43 0.00 35.23 831.32 106.38
Sundry Debtors 23.14 389.39 921.65 117.36 3.78
Cash and Bank
50.34 9,264.99 1,545.08 2,149.09 367.52
Balance
Total Current
2,916.47 15,842.86 596.44 1,268.96 1,933.34
Assets
Loans and
0.00 0.00 0.00 0.00 260.01
Advances
Fixed Deposits 2,966.81 25,107.85 2,141.52 3,418.05 2,560.87
Total CA, Loans
0.00 0.00 0.00 0.00 0.00
& Advances
Deffered Credit 321.19 9,819.84 862.02 1,258.38 326.80
Current
0.43 444.61 78.86 199.80 34.27
Liabilities
Provisions 321.62 10,264.45 940.88 1,458.18 361.07
Total CL
2,645.19 14,843.40 1,200.64 1,959.87 2,199.80
Provisions
Net Current
0.00 0.00 0.00 0.00 0.00
Assets
Miscellaneous 6,610.93 26,289.57 2,506.39 3,243.86 2,518.47

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Expenses
Total Assets
Contingent
938.66 10,887.85 309.61 1,188.42 7.80
Liabilities
Book Value (Rs) 121.97 86.03 76.36 64.83 179.35

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Profit ans Loss account

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 142.06 159.56 40.62 45.03 47.77
Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 142.06 159.56 40.62 45.03 47.77
Other Income 80.44 14.52 99.14 94.73 601.10
Stock
0.00 0.00 0.00 0.00 0.00
Adjustments
Total Income 222.50 174.08 139.76 139.76 648.87
Expenditure
Raw Materials 0.00 0.45 6.33 0.00 0.00
Power & Fuel
0.00 0.00 0.00 0.00 0.00
Cost
Employee Cost 6.28 11.15 27.89 18.96 15.50
Other
Manufacturing 0.43 0.37 0.38 0.30 0.50
Expenses
Selling and
Admin 0.00 34.89 21.13 12.03 19.07
Expenses
Miscellaneous
65.54 2.05 2.42 2.68 4.60
Expenses
Preoperative
0.00 0.00 0.00 0.00 0.00
Exp Capitalised
Total Expenses 72.25 48.91 58.15 33.97 39.67
Operating
Profit
PBDIT 150.25 125.17 81.61 105.79 609.20
Interest 126.30 54.24 53.10 79.83 3.84
PBDT 23.95 70.93 28.51 25.96 605.36
Depreciation 3.19 3.03 2.91 2.55 2.08
Other Written
0.00 0.00 0.00 0.00 0.00
Off
Profit Before
20.76 67.90 25.60 23.41 603.28
Tax
Extra-ordinary
-0.02 0.02 1.31 0.00 0.00
items
PBT (Post
20.74 67.92 26.91 23.41 603.28
Extra-ord Items)
Tax 6.30 22.11 4.47 6.85 135.59

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Cash Flow Statement

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Net Profit Before
20.75 67.90 25.60 23.42 603.29
Tax
Net Cash From
116.25 21.64 -25.25 -1.06 -150.36
Operating Activities
Net Cash (used
in)/from 190.20 -2444.99 -209.20 -1112.05 -2155.10
Investing Activities
Net Cash (used
in)/from Financing -311.05 1563.43 1150.82 862.25 1934.38
Activities
Net
(decrease)/increase
-4.60 -859.92 916.38 -250.86 -371.08
In Cash and Cash
Equivalents
Opening Cash &
32.95 925.66 9.28 260.14 631.22
Cash Equivalents
Closing Cash &
28.34 65.74 925.66 9.28 260.14
Cash Equivalents

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CHAPTER:5
RESEARCH METHODOLOGY

I did a research on ‘customers’ satisfaction’. My objective was to find out

whether customers are satisfied with the store and I did this by

interviewing the customers and collecting qualitative data and

quantitative data.

•Data Source- Primary Data

All the data I used in my research were primary data because those were

collected directly from field.

•Research Approach- Personal Interaction with Customers

My research approach was basically personal interaction with the

customers as I directly went to the people and communicate with them

about the concerned matter and gathered all the necessary data.

•Research Instrument- Questionnaire

I used a questionnaire.

•Sampling Technique- Convenience Sampling

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I used the Convenience sampling technique, because I collected all the

information from those members of the population who were

conveniently available to provide it. It is not advantageously placed to get

information required.

•Sample Frame- Regular Customers Pasia Developers Pvt. Ltd.

I did this survey on those who were regular customers at the store.

The Pasia Developers Pvt. Ltd. Has developed several key methodologies

which worked together with the field survey to give us a clear picture of

any multifamiliy market. The most important of these methodologies are

the Effective Market area(EMA) and 100% database

The first step in any market study is defining the market area, because not

all market areas are alike. Several basic methods exist for determining the

appropriate market area:

 One common method is radial analysis. A series of concentric

circles is drawn around the site at, for example, distances of 3, 5,
and 10 miles. The areas within these circles are then analyzed. This
method is usually employed for one reason--it is easy.

 A second method, common in studies for governmental bodies, is

to base market areas on boundaries between governmental units. In
this method, county, township or city boundaries might become the
boundaries of the market area. This, too is an easy solution since
most secondary data are reported by political delineations.

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 A third methodology, developed by the Pasia Developers
Ltd. , is the Effective Market Area. The EMA is defined as the
smallest geographical area from which a project can expect to
generate 60% to 70% of its support. It is not easy, but it gives us a
better reading of the true market area for a project.

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CHAPTER :6
DATA INTERPRETATION & ANALYSIS

Data Analysis
The data collected was entered and analyzed by simple descriptive
analysis using Statistical Package for Social Scientists (SPSS) version
10.0 software. The software was chosen because it is the most used
package for analyzing survey data. The software has the following
advantages: it is user friendly, can easily be used to analyze multi-
response questions, cross section and time series analysis and cross
tabulation; (i.e. relate two sets of variables) and it can also be used
alongside Microsoft excel and word.

Results and Presentations

Investment Types/ Preferred Lending securities/Areas of

Specialization

There are various assets in which either investors can invest in,
financiers can hold as security or property consultants have specialized
in. According to the survey these include Government securities,
shares, real estate, mortgage loans, corporate bonds/ commercial
papers, bank deposits, chattels and debentures. Real Estate is the most
preferred with 41 % while chattels and debentures are the least with an
approximate count of 1% each. Graph 1 below depicts the results.

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Graph 1: Preferred Investments/ security Types

Real Estate Investment Types

In the real estate sector, the investments are spread in commercial,
residential, industrial, agricultural and recreational properties. Most
respondents or 43% have investments in commercial while only 2% have
investments in recreational.

Dominant Real Estate Investment Type:

From the survey the most dominant real estate type is commercial,
accounting for 38% of the responses as indicated below. Residential
and industrial recorded 28% and 18 % respectively while agriculture
scored 14%.

Provinces in which real Estate investments are situated

The investments and or securities are situated in various parts of the
country. The survey shows that Nairobi as the most popular investment
destination having 43% responses while North Eastern has the least
count of 1%. The chart below illustrates this.

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Chart 2: Real Estate Location

Spread
Source: Author survey 2005

Tools used for performance measurement and Analysis

All the respondents indicated that they used some form of performance
measurement and analysis. The most common is looking at income
growth, which scored 30%, followed by payback method with 27% as
shown in table 2 below. Return on capital and Internal Rate of Return
scored one 1% each.

Table 2: Tools Used in performance Measurement

Mode of Measurement %
Income Growth 30.1
Payback 27.7
Comparison Against Other Investment 20.5
Capital Appreciation 19.3
Return on capital 1.2
Internal Rate of Return 1.2
Total 100

Sources of and adequacy of information used in performance

measurement and analysis.
Information for carrying out performance measurement and analysis is
obtained from various sources. The most dominant being own research
and newspapers. The table below illustrates this.

Table 3: Sources of Information

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Source of Information
%
Economic Survey 18.4
Periodocal and Journals 12.6
Newspapers 19.4
Property Database 11.7
Own Research 27.2
Property Consultants 10.7
Total 100

Type of information used in Performance Measurement and

Analysis
The respondents indicated that they used different types of information
to carry out performance measurement and analysis (performance
appraisal). From the survey no particular type of information stands
out as the most commonly used in performance appraisal. The table
below illustrates.

Table 4: Type of Information Used in Performance Measurement and

Analysis

Type of Information %
Macro-economic Indicators 10.6
Transaction Costs on Land and Buildings 9
Investments in New Construction and Improvements 9
Passing Rents 11.5
Operating Costs 11.5
Capital expenditure during Life of Investments 7.4
Lease Structure 9
Void/Occupancy Rates 11.5
Rent Arears 7.4

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Open Market Values of Land and Buildings

10.7
Appreciation Rate 0.8
Forced Sale Values 0.8
Liquidity 0.8
Total 100

Adequacy and Reliability of Information

The information gathered from the various sources was found to be
adequate and reliable by 51% while 36% found it not to be adequate
and reliable. 2% of the respondents thought the information was both
reliable and not reliable.

Table 5: Adequacy and Reliability of Information

Response Frequency %
Yes 24 51.1
No 17 36.2
Did not Respond 5 10.6
Total 47 100

Acceptance of and Participation in the development of the

property Index
95% of the respondents were positive on efforts to establish a property
index with 78% in favor of a National Index. Other suggestions
include the development of Individual indices (11%), both (i.e.
Individual and National) 6.5%, regional and /or sector based. In
addition 95% of the respondents were positive that they would like to
be involved in its development. See charts 3 and 4 and table 4 below.

Type of Index
Results reveal that most of the respondents (78%) preferred to have a
national index. However there were suggestions for individual indices
11%, both national and individual 7%, and others 4%.

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CHAPTER:7
FINDINGS & RECOMMENDATIONS

He decision to buy or sell a home is one of the most important financial

decisions most people make, yet many give little thought to finding the
real estate agent best suited to their needs.
Agents are often chosen solely
on the recommendation of a
friend or an ad in the
newspaper. But choosing the
right agent can save you time,
effort and aggravation in
finding the perfect home at a
price you can afford or selling
your home quickly for top
dollar.
"Real estate has always been a
mark of independence and
freedom in this country," says Donald R. Brenner, professor emeritus at
American University. "Owning property is very important, and when you
deal with someone who is going to help you buy or sell a piece of
property, you'd better find someone that knows what they're doing.
"If you pick up the phone book and choose from the yellow pages, you
won't make a better decision than if you picked up the telephone book to
choose a brain surgeon," says Brenner.
Shelley O'Hara, author of 'The Complete Idiot's Guide to Buying &
Selling a Home,' says, "When you announce your desire to purchase a
house, you may be surprised at the number of real estate people who want
to represent you. Agents come out of the woodwork. You won't have to
worry too much about finding an agent -- you do need to worry about
finding a good one."
Paul Purcell, a partner in Braddock & Purcell, a real estate advocate in
New York City, agrees. "Buying a house is the most important financial
transaction most people will make in a lifetime," he says.
"The most important thing when either buying or selling a home is to
select the right real estate agent, but people usually go about it
backwards. They read a newspaper or get one of the home magazines in
the supermarkets, and they call about a home they see advertised. They
should first select the real estate agent -- one who will understand what
they need and can navigate the system for them.

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"Advertising is designed to make the brokers' and agents' phones
ring. Typically no one buys the house they called for, but from that point
on, they're joined at the hip with a real estate agent they don't know
anything about -- whether they are good, bad or indifferent or new to the
business. They need to find an agent before they find house."
Brenner explains, "You must make inquiries before you sign with an
agent or broker. Commissions are usually substantial, so some real estate
agents will try to sell you anything. They'll tell you every house is the
best house they've ever seen, every room is the prettiest, your kids are
going to love it, and your dog is going to bark nicely. They'll tell you
anything!
"If you're selling, your property may be the most valuable thing you own
and it is of utmost importance to find an agent you can trust," Brenner
says. "A real estate agent has a high fiduciary duty -- a duty of trust and
confidence. It is the most important duty of any sales person or broker in
real estate. An agent must disclose all the material facts of any transaction
-- everything they know about the property, good or bad. If a salesperson
knows there are three inches of water in the basement every time it rains,
he is obligated to disclose that fact."

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CHAPTER 8
LEASSON LEARNT

1. Focus on revenues before seeking investment. When I went to

raise investment, they put their new development plans on hold,
and disregarded other priorities. The lack of productivity during
their search became demotivating. Especially because the team had
not generated one viable revenue stream, a fact which may have
also made it a difficult sell to investors. “If I was to do it again, my
first priority would be to generate some revenue that can cover the
minimum burn rate and my second priority would be to find
investment; this would have helped keep the team’s motivation
2. Build camaraderie with flexible roles- at first. Focusing too
much on defining specific roles in the very beginning limited the
team's productivity. To have the developer jumping in with ideas
on the design might have helped; with a small team, some
compartmentalization is healthy, but too much can create divides.
Each team member could have been more involved in the overall
work, to maintain balance, flexibility.

3. Get to know your teammates ahead of time. I advises other

startup founders to spend as much time as they can with their
potential future partners before working together, as the smallest
detail in their personalities makes all the difference. Each partner
alone can be a great asset but working together might be difficult
for multiple reasons, due to small details.

“I was too excited about the idea, and I didn't give any time to test
out how we would work together.

4. Too much discussion can kill execution. The most important

thing is not to lose time due to internal disagreement,. To make the
most out of an incubation period, he says it's important to choose a
key person who will be responsible for making the call on all key
decisions. It can be very easy to spend a couple of weeks tweaking
the design or discussing the marketing strategy, he says, which can
waste too much time if a hard deadline is not set. Decisions can't
all be made with total consensus.

5. Pause, solve, and continue. Counting on time to solve problems is

not the best approach. Startups are like relationship;

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misunderstandings may pile up, and one or the other will
burst and make a mess at some point.

6. Don’t underestimate social media. Outbound paid marketing

offers very easy ways to measure returns or conversions. But this
does not mean inbound, or free and traditional social media
channels should be ignored.

The journey itself is the best teacher; no matter how many mentors
you have or how many advice articles you read, personal
experience is what brings the best or worst out of you, as he looks
forward to joining a bigger startup where he'll have a chance to
gain more experience. “It is not enough to read self help books,
you have to live the experience and learn from your own
mistakes,” he says.

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CHAPTER :9
CONCLUSION

The major external factors which people consider while purchasing the
property are Price, Availability of loan and Proximity to workplace.

1. The major In-Locality factors which people consider while purchasing

the property are Quality of construction, Availability of water and
Pollution-free environment

2. Perception of people about different cities of NCR

 Location wise Gurgaon and Noida are adjudged the best by the

respondents
 Business opportunity wise Gurgaon due to the mass presence of

BPO company and offices of MNC’s and Noida due to its

proximity to Delhi are consider good by the majority of
respondents.
 In Quality of living again Gurgaon and Noida leads the pack but

out of the two Gurgaon is better due to the existence of Higher and
upper-middle class people in large number.
 In Law and Order all the places are bad as per the respondents but

out of the five Gurgaon is the best.

 As far as infrastructural development is concerned Greater Noida

enjoys good reputation among the respondents of all the three

cities.

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3. In totality, both Location as well as Affordability together account for

more than 95 % of the total responses.

4. In Gurgaon major reasons other than affordability and location, to

purchase the property were proximity to workplace and healthy
environment.

5. In Noida and Ghaziabad other major reasons were almost the same
-desire to own an own house as well as need for better facilities.

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BIBLIOGRAPHY

BOOKS & JOURNALS

Real Estate in India , JM PUJARI, Manav Publication, 2010

Real Estate , Mexio and Direct Foreign, coastal , 2010
Real Estate, Philippnes Foreign, 2013
Real Estate, Oxford English,2011

INTERNET LINKS

www.unitechgroup.com
www.pasiadevelopers.com
www.ansalspropertiesltd.com
www.maxheight.com
www.eldecogroup.com
www.omaxe.com
www.parsvnath.com
www.gurgaonproperties.net
www.realestatencr.com
www.gurgaonrealestate.com
www.estatedeveloper.com

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APPENDICES AND ANNEXURES

QUESTIONNAIRE

Questionnaire used for conducting survey: Customer satisfaction on Property,

Pasia Developers Pvt. Ltd..

Name:

Age: Sex:

Phone no.:

[1-Highly Dissatisfied, 2- Dissatisfied, 3- Moderate, 4- Satisfied, 5- Highly

Satisfied]

1. How frequently do you Visit Pasia Developers Pvt. Ltd.?

a) Once a week

b) Twice a week

c) Once a month

d) Twice a month

e) Thrice a month

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2. From where did you get to know about Pasia Developers Pvt. Ltd.?

a)Advertisement

b) News paper

c) Relatives

d) Brochure

e) Mail)

Others—(please specify) __________

3. How do you rate our advertisement of property?

a) 1

b) 2

c) 3

d) 4

e) 5

4.How would you rate Pasia Developers Pvt. Ltd. regarding the price and

promotion offers available?

a)1

b) 2

c) 3

d) 4

e) 5

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