Findings and Analysis

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

1. Age group of Investors

Age Group of Investors

20 -25 years 26 - 35 years 36- 45 years 45 and above

8%
27%
23%

42%

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 45 years and above-
27%. 23% in age group of 26 to 35 years and the least were people in the
age group of 20 to 25 years. This shows the type of sample that we are
analyzing
2. Income Level

Income Level
45
40
35
30
25
20
Series1
15
10
5
0
2 - 3.5 lakh 3.5 - 6 lakh 6- 10 lakh 10 lakh and
above

The above analysis shows that the people covered under the survey mostly
included people from the income group of 6-10 lakhs i.e. 39% , followed
by people with income above 10 lakh- 33% and the remaining were in the
category of 3.5 to lakh and 2- 3.5 lakh consisting of 22% and 6%
respectively.
3. Preferred Investment Option

Preferred Investment Option

Real estate Equity Mutual Funds Gold

18%
36%
12%

34%

The above findings show that Real estate is a favored investment option
among the respondent by 36% followed by equity, gold and mutual funds
by 34%, 18 % and 12 % respectively. This infers the trust and the interest
of the investors in Real estate sector. People are willing to invest in real
estate be it a large investor or small all of them try to invest in real estate
sector in the ways convenient to them.
4. Preferred investment in real estate

Preferred Real estate Investment

Option
Residential Commercial REIT equity of real estate

25%
38%

13%

24%

The above analysis shows that investors preferred investment option is

residential property by 38% .The next best option being equity shares of
real estate companies by 25% followed closely by commercial property
with 24% and the least investment is in REIT with only 13 % respondents
investing in it. This analysis clearly shows that residential property is the
most favored investment option amongst the investors. The above analysis
also shows that people are not investing in REIT’s when asked the reason
most the people were not even aware about it.
5. Factors effecting real estate investment decisions

Factors effecting Investment

Price Bank Rate Location
Economies Condition Government Policies Disposable Income

28% 22%

18%
12%
17%

3%

The major factor that effects the investment decision is the Disposable
Income of the investor .which constitutes 28% of the respondents. The
prevailing price of the properties is another important factor it constitutes
22% of the respondents if the price is too high people avoid purchasing the
property and vice versa. Price is the major determinant factor followed by
Bank rate at 18 % as it is 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 the
respondents.These policies are regarding taxes, subsidies, stamp duties ,
FDI and the like. Economies condition also effect around 3% respondents.
6. Perception about effect of recession

Perception of Buyers
Cost Decreased Projects Delayed Stop Purchasing
Good time to purchase No difference

20% 8%
31%
19%

22%

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

Time Duration
1- 3 years 3-5 years 5-10 years more than 10 years

15%
23%

28%

34%

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 time duration of 1- 3 years. This
analysis shows that people invest in real estate for long term which is
around 5-10 years.
8. Better Future of Real estate

Better Future of Real estate

Yes No Neutral

11%

20%

69%

69% respondent feels that the Indian real estate industry has a bright
future and will increase in the coming days. Whereas 20 % of the
respondents feel the other way round. 11% respondents were neutral
about the issue and said that the situation will remain same without any
change.
Majority of the respondents are positive about the future of the real estate
industry.