PROJECT REPORT ON

THE INFLUENCE OF MACROECONOMIC AND MICROECONOMIC

FACTORS ON REAL ESTATE PRICING STRATEGIES

IN

KALPATARU

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF

MASTER OF MANAGEMENT STUDIES

BY
PANKAJ ASHOK KHAIRNAR
ROLL NO 2022094
MMS-II (SEM III)
YEAR 2022- 2024

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI - 400034

1
 PROJECT REPORT ON

THE INFLUENCE OF MACROECONOMIC AND MICROECONOMIC

FACTORS ON REAL ESTATE PRICING STRATEGIES

IN

KALPATARU

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF

MASTER OF MANAGEMENT STUDIES

BY
PANKAJ ASHOK KHAIRNAR
ROLL NO 2022094
MMS-II (SEM III)
YEAR 2022- 2024

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI - 400034

2
SUMMER INTERNSHIP PROJECT

SUBMITTED BY

PANKAJ ASHOK KHAIRNAR

ROLL NO – 2022094

MMS – II (SEM III)

YEAR 2022- 2024

3
4
5
 Certificate
This is to certify that the project work titled “THE INFLUENCE OF
MACROECONOMIC AND MICROECONOMIC FACTORS ON REAL
ESTATE PRICING STRATEGIES” is a summer internship work carried out by
Mr. PANKAJ ASHOK KHAIRNAR.
The project was completed for “KALPATARU”, under the guidance of Mr.
VIKRAMRSINH POWAR.
I further certify that the said work has not been submitted in the part or in full, to
any other University.

Date: 04th December, 2023

_____________________ __________________________
Dr. Gautam Trehan Dr. H.J Bhasin
Project Guide Director

6
 DECLARATION

I, Mr. PANKAJ ASHOK KHAIRNAR, student of Lala Lajpat Rai Institute of

Management of MMS II (Semester III) hereby declare that I have completed the
summer internship project on “THE INFLUENCE OF MACROECONOMIC
AND MICROECONOMIC FACTORS ON REAL ESTATE PRICING
STRATEGIES” with KALPATARU in the Academic year 2022 - 2024. The
information submitted is true & original to the best of my knowledge.

PANKAJ ASHOK KHAIRNAR

Name of the student

7
 ACKNOWLEDGEMENT

At the outset of this project, I would like to express my profound thanks to a few
people without whose help, completion of this project would not have been
possible.
First and foremost, I would like to express sincere thanks to KALPATARU for
giving me this opportunity to work with them.
The list is endless but to name a few special people, I would like to thank
VIKRAMSINH POWAR, Senior Executive-Sales for being extremely supportive
and guiding me throughout my internship and giving me constant motivation and
expert advice.
I would also like to thank the entire SALES DEPARTMENT for providing me their
precious time and making this internship a successful learning experience.
I am very grateful to Dr. H.J Bhasin, Director of Lala Lajpat Rai Institute of
Management, for giving me the opportunity to do this project in KALPATARU.

I would also like to thank Dr. Gautam Trehan for being an excellent mentor and
our coordinator Dr. Neetu Singhwal helping me whenever I approached her.
Last but not the least; I take pride in thanking my parents Mr. ASHOK
KHAIRNAR & Mrs. REKHA KHAIRNAR, siblings and friends for their much-
valued support.

8
 EXECUTIVE SUMMARY

TITLE – THE INFLUENCE OF MACROECONOMIC AND

MICROECONOMIC FACTORS ON REAL ESTATE PRICING
STRATEGIES

This report is a brief summary of my summer internship which is a part of my

MMS coursework. The report is a comprehensive study of the Real Estate Industry
in Thane. The objective is to find out various factors depended on the pricing of the
flat. This is done by analysis of the market price or Ready reckoner rates of
particular location where the project is planned. As an intern at Kalpataru Parkcity,
Thane, my primary task was to understand the Channel partner by interaction and
understand their needs. In addition to that it was also important to know their
preference while choosing or buying the flat. By attending the channel partners

, it helped me to study the pricing strategy implemented by other competitors and

helped me to do the competitor analysis. Considering the above aspects, this report
would give a holistic view as how the real estate industry is functioning in Thane
keeping in view of other aspects at macro and micro economic factors.

METHODOLOGY:-

The final report is prepared on the basis of the experience and knowledge acquired
during the period of my internship and survey. Research with the help of various
sources and sites, interaction with mentors and peers from completing various group
discussions and activities is done as well as hands on learning and experience have
been utilized in this project.

9
CONCLUSION:-

Most of the home buyers at Kalpataru Parkcity are from Thane. And from all the
typology available, 2 bhk is most in demand.
The reason behind 2 bhk is that most of them have 4 family members and spacious
2 bhk fulfil all the needs.
Buyers are also looking lucrative payment plan which will ease for them in buying
under construction project.
After meeting so many channel partners it is explicit that the most of the customers
are looking and prefer then ready to move projects or newly launch project for
investment purpose.

10
 TABLE OF CONTENTS

SR NO TOPIC PAGE NO
Chapter 1 Introduction 12

1.1 Company overview 12

1.2 Kalpataru parkcity 15
1.3 Grand Central park 16
1.4 Phase 1- Sunrise 17
1.5 Phase 2- Immense 18
1.6 Phase 3 – Eternia 20

Chapter 2 Department overview 22

2.1 Sourcing Department 22
2.2 Sourcing Department 23
2.3 Overview 23

Chapter 3 Industry overview 24

3.1 Market size 24
3.2 Investment & Development in real estate sector 25
3.3 Some of major investments and developments 25
3.4 Government initiative 27

Internship at kalpataru 29
Chapter 4 4.1 Internship 29
4.2 key learnings 30

Competitor Overview 32
Chapter 5 5.1 Lodha Amara 32
5.2 Godrej Ascend 32
5.3 Hiranandani OHP 33
5.4 Rustomjee Urbania 33
5.5 Dosti West country 34
5.6 Raymond tenx 34
5.7 Runwal Enchanted 35
5.8 Piramal Vaikunth 35

Chapter 6 Project Objective 36

11
Chapter 7 Research Methodology 37

7.1 Research Objective 37

7.2 Research Type 37
7.3 Data collection Source 37
7.4 Data collection Tool 38
7.5 Data collection type 38
7.6 Review literature type 38

Chapter 8 Evolution of real estate sector 39

8.1 Impact of Macro economic factor 42
8.2 Micro economic factors influencing real estate 47
48
8.3 Challenges faced by Real estate sector 52
8.4 Properties in Thane 54
8.5 Top real estate developers

Chapter 9 Competition Analysis 55

Survey of customers visited at kalpataru parkcity
56
Chapter 10 Pricing strategy 62

Chapter 11 Findings
63
Chapter 12 Conclusion
64
Chapter 13 Recommendation 65
Chapter 14 Bibliography 66

12
 CHAPTER 1

INTRODUCTION

COMPANY OVERVIEW

One of the top real estate firms in India is Kalpataru Limited., founded in 1969. The business
has won multiple honors for its global quality and design, which have established milestones
and defined industries. Over the past century, real estate development has adopted new
criteria.

For more than 50 years, MR. MUFOTRAJ P MUNOT Kalpataru has built gorgeous
residences and business buildings for a succession of contented clients. Homes and offices
that are created with sustainability and value in mind. Their great customer relationships are
built on a culture of client focus, openness, and responsiveness.

MR. MUFOTRAJ P MUNOT

VISION
" Become a well-respected brand that provides clients with living spaces that are cutting-
edge, high-quality, thoughtfully planned, and focused toward activities. acknowledged for
creating enduring ties with stakeholders and with individuals "

13
GROUPS OF CORPORATIONS
With interests in real estate, power transmission and distribution, civil infrastructure, and
post-production infrastructure, Kalpataru Group is one of India's top infrastructure
corporations.

KALPATARU LIMITED

Since its founding in 1969, Kalpataru Limited has specialized in the design and development
of luxury residential towers, residential communities, towns, and commercial real estate.

KALPATARU POWER TRANSMISSION LTD

One of India's top-performing and largest EPC companies is Kalpataru Power Transmission
Limited (KPTL), which specializes in power transmission. KPTL is active in infrastructure
(oil and gas pipelines, railways, buildings and industries, bridges and roads), asset
development, and power transmission (with stakes in production, distribution, and
construction) (transmission, road, logistics and warehouse system). Projects by Kalpataru
Power are spread throughout 42 nations.

JMC PROJECTS INDIA LTD

One of India's top firms for building infrastructure and public works is JMC Projects (India)
Limited. In addition to power plants, also credited with constructing a number of significant
projects around the nation, including highways, bridges, overpasses, cities, hospitals,
industrial facilities, parks, and software. Being certified to ISO 9001: 2008 (Quality
Management), ISO 14000: 2004 (Environmental Management), and BS OHSAS 18001: 2007
(Safety and Health) Health Occupation makes it one of the few construction businesses in
India.

14
PROPERTY SOLUTIONS INDIA PVT LTD

One of the biggest indigenous Indian businesses in the integrated facility management
services sector is Property Solutions (India) Pvt. Ltd. (PSIPL). With a presence in almost 20
states, PSIPL stands for an original method of facility management in India. It provides a
wide variety of clever and cutting-edge facility management solutions with the goal of
producing long-lasting and affordable outcomes in client facilities and workplaces. Services
offered include technical assistance, software assistance, pest control assistance, security
management assistance, business support assistance, and specialized service assistance in
numerous sectors.

SHREE SHUBHAM LOGISTICS LTD

One of the biggest private sector providers of warehousing services is Shubham Logistics
Limited (SSL), which offers a variety of services and modern (dry and cold) warehousing
facilities. Agriculture and the food industry: services. With a total storage capacity of almost
6 million square feet, the company manages and runs more than 100 warehouses throughout
Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, Haryana, Karnataka,
Bihar, and Andhra Pradesh using a central and speaking model. In terMr of storage floor
plate area.

15
 ABOUT KALPATARU PARKCITY, KOLSHET, THANE

PARKCITY :-
Kalpataru Parkcity is the 100+ acre of township project at Kolshet road, Thane. The
residential project is planned phase wise. Where Sunrise was the phase 1 in the township
which was built in 5.5 acre with 5 towers which was completed and possession was given in
2019.

The upcoming phase is Immensa (Phase 2) and Eternia (Phase 3)

Immensa is the planned in 8 acres with 8 towers and is planned to give possession by Dec 24
and Eternia is planned in 10 acres with 10 towers and is planned to give possession by Dec 25 &
26.

The township is taking care of everything – from traffic inside the township to giving
residents a nature centric lifestyle with 70% open space. The ICSE School and place of
worship within the gates ensures that grandparents and children have a complete life.

The township has been built around the Grand Central Park, a 20+ acre oasis that contains
4 zones, including a 3-acre Lake zone as well, Like Hyde Park in London and Central Park
in New York, it offers residents an oasis of green within the concrete jungle.

16
Fig. 1 Kalpataru Park City Township map

17
GRAND CENTRAL PARK :-

Grand Central Park is the prime focus of Kalpataru Park City at Kolshet Road, Thane. The Grand
Central Park is spread across over 20 Acres of land parcel and will be one of the major attractions
of not only Kalpataru Park City but whole of Thane & Mumbai. Grand central Park is a thematic
park which is based on the lines of best parks in the world like Central Park in New York, Hyde
park in London and Gardens By The Bay in Singapore. This park welcomes one and everyone and
has something for everyone to do. Be it children's play area zone, the lakeside promenade,
amphitheater, the thematic gardens or the sports and activity zone. The Grand Central Park is a
place where nature and cultural activities converge as a new standard of living

Fig. 2 Grand Central Park

18
PHASE 1 :- THE SUNRISE :-

Kalpataru The Sunrise is a project that offers excellent value for money. Spread over 5.5 acres and
comprising of 580 sqft to 1080 sqft, Kalpataru. The Sunrise offers a wide range of choices for
customers to choose from. From 1BHK to 3BHK apartments, customers can find the perfect home
for them. Kalpataru The Sunrise is located in one of the prime business districts in Thane, and is
just a short distance away from Thane Ghodbunder Road. The upcoming IT hub will only make
this project even more popular, and customers can be sure to make a profit with this investment.
With contemporary design and a well-planned layout, Kalpataru the Sunrise is sure to impress.

Fig. 3 THE SUNRISE

19
PHASE 2:- IMMENSA

The contemporary design, ultra-modern amenities, natural surroundings, strategic location and
affordable rates are some of the salient features that describe Kalpataru Immensa. Worth every
penny of client’s investment, a home in this society is truly a valuable & profitable asset.

Kalpataru Immensa is an amalgam of total 8 residential towers consisting of 1BHK, 2BHK and
3BHK residential units. The well-ventilated residential apartments are blessed with abundant fresh
air and natural sunlight, thus creating a lively and energetic home ambiance.

Kolshet Road is a known locality and offers good connectivity to other parts of Mumbai via NH-3
and NH-4. It hardly takes 35 minutes to reach Santacruz Airport via SCLR. Be it BKC, Andheri,
Vashi, Powai and many other prominent areas are easily accessible from this locality.

Presence of good schools, hospitals, shopping malls, restaurants, banking facilities and all other
prime necessities has made Kolshet Road a favorable residential place. Easy availability of public
transports is an added advantage of this area.

Fig. 4 - IMMENSA

20
Floor Plan of Immensa by Kalpataru

Floor plans are a great way to understand how the spaces/room connect with each other in a house
and help provide a bigger picture to a buyer. The properties in Immensa by Kalpataru are
available in 3 configurations and 6 varied layouts (or floor plans), with 1BHKs present in 680 sq.
ft. super area, 2BHKs in 640, 765 and 772 sq. ft. carpet area, and 3BHKs in 906 and 1434 sq. ft
super area. All these configurations come with 1-3 balconies. Immensa by Kalpataru Floor Plan
for all these property configurations are made available on their website and brochure.

Fig. 5 – IMMENSA FLOOR PLAN

21
PHASE 3: - ETERNIA
Kalpataru Eternia Thane project, where life is evergreen is a Under Construction project from the
house of KALPATARU GROUP properties. KALPATARU GROUP properties bring a new
world of the live comfortable location of Thane in Mumbai, where lifestyle is at its best phase!
Kalpataru Eternia Thane offers competitively priced apartments to those looking for a stylish and
classy lifestyle. Kalpataru Eternia Thane gives high on connectivity and convenience as well and
the finest standalone tower. Kalpataru Eternia Thane is Conveniently connected by the Eastern
Freeway. Near Kalpataru Eternia Thane positioned in close proximity to major IT campuses,
client’s workplace could be just a stone’s throw away.

22
 Fig. 6 – ETERNIA

Floor Plan of Eternia by Kalpataru

Fig. 7 – ETERNIA FLOOR PLAN

All 10 towers have different floor plans. The properties in Eternia by Kalpataru are available in 4
configurations and varied layouts (or floor plans), with 1BHKs present in 530 sq. ft. super area, 2
BHKs in 618, 669, 765, 828 and 3 bhk in 930,1350 sq. ft. carpet area, all these configurations
come with 1-3 balconies. Eternia by Kalpataru Floor Plan for all these property configurations are
made available on their website and brochure.

23
 CHAPTER 2

DEPARTMENT OVERVIEW

 I was working with Sales department of Kalpataru Park city Project.

 Sales department has two verticals, that are Sourcing and Closing.

I was working in sourcing department of Kalpataru Park city project in Thane. Where
my main job was to pitch the project to channel partners in detail, show them the site
and sample flats, understand the customers requirement and give them the best deal
while handling negotiation.

SOURCING DEPARTMENT –

The goal of sourcing department is to bring business/Clients and increase Walk-ins to

sales office through Channel Partners and Brokers. Sourcing managers pitch the project to
channel partners and brokers while also encouraging them to bring best deals for which
they will be getting good commission. 70% of bookings in real estate are done through
networking of channel partners and brokers.

Sourcing team have to maintain good relations with them so that channel partners visit
with more and more clients. Channel partners are connected with all the real estate
developers which makes the process more competitive. Events and sessions are done on
monthly basis to attract channel partners and maintain good relation with them. Average
channel partner commission rate is around 2.5% to 3.5% in thane district.

Sourcing team also pitch and try to build network with new channel partners and brokers.
They are asked to visit the site, where sourcing managers are appointed to brokers and
firm, who will be the source of network in that company. Any queries and client’s walk-in
from that broker or channel partner is handled by that appointed sourcing manager.
24
Sourcing team sit with clients during the meeting but they do not pitch or negotiate with
clients directly. They only deal with channel partners and brokers. The negotiation part
and rest of the project explanation is done by closing team.

CLOSING DEPARTMENT: -

Closing department deals with the customer face to face, explanation of the whole project,
quoting the price, negotiating, understanding customer requirement this all comes under
the closing department. The main target of the closing department is to crack the deal and
do the sale. While doing so closing manager use various sales techniques through which
customers get convinced. Dealing with customer problem and giving them the best
solution is the priority. Once the solution is given the sales part becomes easy for
managers. Helping with various finance related solution is also part of closing team. What
and which finance solution suits the budget of customer also was closing managers role.

OVERVIEW: -

 Provide guidance and assist buyers in marketing and purchasing property for the right
price under the best term.

 Determine clients’ needs and financials abilities to propose solutions that suit them

 Intermediate negotiation processes, consult clients on market conditions, prices,

mortgages, legal requirements and related matters, ensuring a fair and honest dealing

 Perform comparative market analysis to estimate properties’ value

 Display and market real property to possible buyers

 Prepare necessary paperwork (contracts, leases, deeds, sourcing statements etc.)

 Manage customer interactive events.

 Maintain and update listings of available properties

 Develop networks and cooperate with brokers, channel partners and contractors

 Promote sales through advertisements, open houses and listing services

25
 Remain knowledgeable about real estate markets and best practices

26
 CHAPTER 3

INDUSTRY OVERVIEW

The real estate sector is one of the most globally recognized sectors. It comprises of four sub-
sectors - housing, retail, hospitality, and commercial. The growth of this sector is well
complemented by the growth in the corporate environment and the demand for office space as
well as urban and semi-urban accommodation. The construction industry ranks third among the 14
major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

In India, the real estate sector is the second-highest employment generator, after the agriculture
sector. It is also expected that this sector will incur more non-resident Indian (NRI) investment,
both in the short term and the long term. Bengaluru is expected to be the most favoured property
investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and
Dehradun.

MARKET SIZE: -
The Indian real estate market is poised for significant growth, expanding from Rs. 12,000 crore
(US$ 1.72 billion) in 2019 to Rs. 65,000 crore (US$ 9.30 billion) by 2040. The sector is projected
to reach a market size of US$ 1 trillion by 2030, up from US$ 200 billion in 2021, and contribute
13% to the country's GDP by 2025. Retail, hospitality, and commercial real estate are also
experiencing robust growth, providing much-needed infrastructure to support India's expanding
needs.

In a single year, India's real estate sector witnessed over 1,700 acres of land deals across the top 7
cities. Foreign investments in the commercial real estate sector amounted to US$ 10.3 billion from
2017 to 2021. With the replacement of the existing SEZs act, developers anticipate a surge in
demand for office spaces in SEZs as of February 2023.

According to ICRA estimates, Indian firm are expected to raise over Rs. 3.5 trillion (US$ 48
billion) through infrastructure and real estate investment trusts (REITs) in 2022, surpassing the
US$ 29 billion raised to date.

27
From July 2021 to December 2022, the office market in the top eight cities recorded transactions
of 22.2 Mrf, while new completions stood at 17.2 Mrf during the same period.

The Information Technology (IT/ITeS) sector dominated the share of sectoral occupiers with 41%
in the second half of 2022, followed by BSFI and Manufacturing sectors with 16% each. Other
Services and Co-working sectors held 17% and 10%, respectively.

India delivered around 40 million square feet of real estate in 2021 and is projected to capture a
40% market share in the next 2-3 years. In 2023, India was expected to deliver 46 million square
feet of real estate.

INVESTMENTS & DEVELOPMENT IN REAL ESTATE SECTOR

The Indian real estate sector has experienced substantial growth in recent times, fuelled by rising
demand for both office and residential space. According to property consultant Colliers India,
institutional investments in the sector are projected to climb 4% to Rs. 36,500 crore (US$ 5
billion) in 2021, driven by investors' increased interest in seizing attractive valuations amid the
pandemic. A recent Colliers India report revealed that private equity investments in Indian real
estate reached US$ 2.9 billion in the first half of 2022, a more than twofold increase from the first
half of 2021.

Exports from Special Economic Zones (SEZs) reached Rs. 7.96 lakh crore (US$ 113.0 billion) in
FY20, representing a ~13.6% increase from Rs. 7.1 lakh crore (US$ 100.3 billion) in FY19.

In a bid to make the market more accessible to small and retail investors, the Securities and
Exchange Board of India (SEBI) lowered the minimum application value for Real Estate
Investment Trusts (REITs) from Rs. 50,000 (US$ 685.28) to Rs. 10,000-15,000 (US$ 137.06 -
US$ 205.59) in July 2021.

Between April 2000 and September 2022, FDI in the sector, including construction development
and activities, totalled US$ 55.18 billion.

Some of the major investments and developments in this sector are as

follows:
28
 Between January-July 2022, private equity investment inflows into the real estate sector in
India stood at US$ 3.27 billion.
 Home sales across seven major Indian cities witnessed a 113% year-over-year surge to
approximately 62,800 units in the third quarter of 2022, compared to 29,520 units in the
same period the previous year. This indicates a robust recovery following the strict
lockdown imposed in the second quarter due to the COVID-19 pandemic's spread in the
country.

 Institutional real estate investment in India grew by 7% year-over-year in the third quarter
of 2021. In the first nine months of 2021, investments amounted to US$ 2,977 million,
compared to US$ 1,534 million in the same period the previous year.

 November 2022 saw Ascends India acquire Aurum Ventures' 16-story commercial tower
in Navi Mumbai for Rs. 353 crore (US$ 47 million), marking the largest deal for a
standalone commercial tower by a global institutional investor in recent years.

 To provide legal advice and assistance to homebuyers, REA India-owned online real estate
company Housing.com partnered with online legal assistance start-ups Legal Kart, Law
rato, Vidhi karya, and Vakil in 2022.

 The top three cities—Mumbai (~39%), NCR-Delhi (~19%), and Bengaluru (~19%)—
accounted for approximately 77% of the total investments recorded in the third quarter of
2022.

 According to a CBRE report, India's flexible space stock is expected to expand by 10-15%
year-over-year, from the current 36 million sq. ft., in the next three years.

 To establish an investment platform for Indian retail-led mixed-use assets, GIC announced
in June 2022 the acquisition of a minority stake in Phoenix Mills' portfolio (worth US$
733 million).

 Blackstone Real Estate acquired Embassy Industrial Parks for Rs. 5,250 crore (US$
716.49 million) in May 2022, expanding its presence in the country.

 To venture into the Indian real estate market, SRAM & MRAM Group partnered with
Area CAS Developers and Infrastructure Private Limited (Area Group) and Gupta
29
 Builders and Promoters Private Limited (GBP Group) of India. It intends to invest US$
100 million in the real estate sector.

 According to Ana rock, housing sales in seven cities increased by 29% and new launches
by 51% in Q4 FY22 compared to Q4 FY21.

 Private market investor, Blackstone, which has significantly invested in the Indian real
estate sector (worth Rs. 3.8 lakh crore (US$ 50 billion) is seeking to invest an additional
Rs. 1.7 lakh crore (US$ 22 billion) by 2030.
 In 2022, working remotely is being adopted at a fast pace and demand for affordable
houses with ticket size below Rs. 40-50 lakh is expected to rise in Tier 2 and 3 cities,
leading to an increase in prices in those geographies.
 In April 2022, HDFC Capital Advisors (HDFC Capital) partnered with Cerberus Capital
Management (Cerberus) to create a platform that will focus on high-yield opportunities in
the residential real estate sector in India. The platform seeks to purchase inventory and
provide last-mile funding for under construction residential projects across the country.
 In March 2022, Godrej Properties announced it would launch 10 new real estate projects
in Q4.
 In March 2022, Godrej Properties increased its equity stake in Godrej Realty from 51% to
100% by acquiring equity shares from HDFC Venture Trustee Company.
 In January 2022, SOBHA Limited’s wholly owned subsidiary, Sabha Highrise Ventures
Pvt. Ltd. acquired 100% share in Annalakshmi Land Developers Pvt. Ltd.

GOVERNMENT INITIATIVE: -

Government of India along with the governments of respective States has taken several initiatives
to encourage development in the sector. The Smart City Project, with a plan to build 100 smart
cities, is a prime opportunity for real estate companies. Below are some of the other major
Government initiatives:

 In October 2022, the Reserve Bank of India (RBI) announced its decision to maintain the
benchmark interest rate at 4%, providing a significant boost to the country's real estate

30
 sector. This low-interest-rate environment is anticipated to fuel housing demand and drive
a 35-40% increase in sales during the 2022 festive season.

 Union Budget 2022-23 extended the tax deduction of up to Rs. 1.5 lakh (US$ 2069.89) on
interest on housing loans and the tax holiday for affordable housing projects until the end
of fiscal 2022-23.

 The Atmanirbhar Bharat 3.0 package, unveiled by Finance Minister Nirmala Sitharaman
in November 2022, introduced income tax relief measures for real estate developers and
homebuyers for primary purchases and sales of residential units valued at up to Rs. 2 crore
(US$ 271,450.60) between November 12, 2022, and June 30, 2023.

 In an effort to revive approximately 1,600 stalled housing projects across India's major
cities, the Union Cabinet approved the establishment of a Rs. 25,000 crore (US$ 3.58
billion) alternative investment fund (AIF).

 To support microfinance for housing finance companies (HFCs), the government

established the Affordable Housing Fund (AHF) within the National Housing Bank (NHB)
with an initial corpus of Rs. 10,000 crore (US$ 1.43 billion), utilizing the shortfall in
priority sector lending by banks and financial institutions.

 As of January 31, 2022, India had formally approved 425 SEZs, of which 265 were
already operational. The IT/BPM sector accounts for the majority of special economic
zones (SEZs).

31
 CHAPTER 4

INTERNSHIP AT KALPATARU LIMITED

 Understand Kalpataru Projects & Kalpataru Roots: -

Understanding the park city project and the kalpataru roots (Roots was wall of kalpataru journey
and details of what material kalpataru uses to deliver excellent projects and experience)

 Study of nearby competitors’ site and understand their projects,

price, offers, payment plan and other amenities: -

During internship we were asked to study competitors’ site and understand there project,
at what price they are offering, what payment plans they are offering and which amenities
are there in the project.

 Competition Analysis: -
Analysis of what we learned during the other site visit, how other projects and our is different,
what are the similar offers and schemes going etc.

 Contact: -

Contacting the channel partners in the market and listening their needs and requirement,
contacting channel partners and pitching them our project and inviting them for channel meets.

 Organize channel partner meets for the channel partner: -

In this we invite existing and new channel partners to the channel partner meet where we can
interact them with face to face and pitch or projects and give them the idea of their brokerage
etc.

32
  Channel partner project orientation: -

Giving orientation to channel partners, explaining them the projects, pricing and commission that
company offers.

 Attend Walk in channel partners: -

Attending direct channel partners and pitching them the project, taking follow up of those channel
partner and trying to close the deal.

 Follow up calls to attended channel partners: -

Attending channel partners and then taking follow up through calls and emails. Asking them to
generate walk in for the projects and try to close deal at great price.

Key learnings
 KEEPING A JOURNAL IS GREAT FOR GROWTH: -

The day I joined kalpataru parkcity my mentor told me to maintain my daily activity and

learnings in diary. Which helped me throughout my internship.

 HOW IMPORTANT GOOD COMMUNICATION IS: -

Communication is the key to success in sales. Hence all the sourcing managers asked me to
shadow them during their meetings and learn how to communicate with the channel partners

 BENEFITS OF TAKING FEEDBACKS: -

Taking feedbacks from my sourcing managers helped me to improve and made my

performance better. They taught me how to improve my pitch, how to negotiate, how to
calculate and make deal.
33
Which eventually helped me to generate walk in, which was an achievement for me as an intern.

 How to put my knowledge and skills into practice

In our initial days, I was given a training about how to communicate to channel partners,
how to make a conversation interactive. And to my best of knowledge, I have attended
channel partners at parkcity Kolshet Thane

 Understanding workplace culture

Culture influences communication, I learned that every company or organization has its own
culture, and Kalpataru has its own, which I personally liked. It’s essential to observe others
and learn how they engage and interact with colleagues and help them in their tasks. My
seniors were helpful throughout my internship. At Kalpataru, I found the hierarchy to be

horizontal in nature.

 Enthusiasm is invaluable

As an intern, I discovered it’s essential to be enthusiastic and open to learning new skills. My
sourcing manager, Mr. vikramsinh powar used to always share his experience with me and
enlighten me.

 The benefits of networking

During my internship, I learned how to communicate and build relationships with the
people I worked with. Be it colleagues, seniors, or channel partners. I also connected with

most of them via LinkedIn, a platform for professionals.

34
 CHAPTER 5

COMPETITORS OVERVIEW

ABOUT COMPETITORS LOCATED NEXT TO KALPATARU PARKCITY

 LODHA AMARA
Amara is dwell in the middle of natural avenues at Lodha Amara, a spectacular residential
address at Thane. Its 1, 2, and 3 BHK premium residences come equipped with large decks
that give you grand views of the surrounding locale. The 40-acre property is decked with
dense groves, a private forest, woodland trails, & airy, open spaces. Amenities include
clubhouses, a sports arena, a jungle gym, a poolside cafe, a yoga deck, & ton more!

The locale of Kolshet Road is highly appealing for homebuyers as well. It hosts fine social
infrastructure such as Blossom High School, Hiranandani Hospital, Viviana Mall, &
Decathlon. The property further gives quick access to the Kolshet Industrial Area, Thane
Railway Station, and the proposed metro station at Majiwada. With spacious residences in
the lush locale of Thane, Lodha Amara bridges the gap between city and nature and gives a
life replete with both.

 GODREJ ASCEND

Nestled amid the gently bustling lane of Kolshet Road in Thane, Godrej Ascend is an exciting
world full of opulent indulgences. Its skyscrapers such as Panorama and Royal offer intelligently
designed 1, 2, & 3 BHK apartments with mesmerising city views. The residences are further
complimented well with a bespoke offering of ultra-luxurious and truly unique amenities. From

35
the grand clubhouse for children to an entirely open-to-sky rooftop sports arena, the amenities
here promise endless possibilities for exploring one's passions.

Another standout is that the project is right where the action's at! The lively neighbourhood of
Kolshet Road ensures that this project is surrounded by the finest landmarks and commute roads -
D-Mart, D.A.V. Public School, Jupiter Hospital, & Eastern Express Highway are within 10
minutes. With an enviably green city location, luxe apartments, and a buzzing locale, Godrej
Ascend is sure to make one feel akin to standing atop the summit of the world.

 HIRANANDANI OHP

A 250+ residential township, the Hiranandani Estate lies amid the beautiful scenery of the Yeoor
Hills and the Ulhas River in Thane. Its numerous towers come furnished with spacious
apartments, modern amenities, and tranquil landscaped gardens. The prestigious township also
houses the Hiranandani Foundation School, Hiranandani Hospital, the Walk - a high street retail
space, and dedicated business parks.

The vicinity around the township is as developed and futuristic as well, featuring the finest
restaurants, entertainment, and healthcare. Podar International School, R Mall, and Suraj Water
Park are all 5 to 10 minutes away. The project is also off the Ghodbunder Road and in proximity
to the Eastern Express Highway, Thane Railway Station, Mulund Check-Naka, and the Thane-
Wadala Metro Line. With the lake city of Thane as its backdrop, the urban-green Hiranandani
Estate makes for a picturesque living space that offers refined experiences.

 RUSTOMJEE URBANIA

A fabulous 100-acre township in Thane West, Rustomjee Urbania places you in the lap of
ultra-luxury. Its airy 2 and 3 BHK residences are just the tip of the delightful lifestyle on
offer. You can further expect a fully-integrated estate replete with state-of-the-art
amenities, essential facilities, the Rustomjee Cambridge International School, Azziano - a
premium retail avenue, festival plaza, fire station, and urban farming spaces as well!

36
The premium locale of Thane West further adds to the glamour of the estate as it features
quality healthcare, education, fine-dining restaurants, and entertainment in the city.
Moreover, the property is just off the Eastern Express Highway and is in proximity to the
Thane Railway Station (10 mins), Airoli (20 mins), and Powai (30 mins). Overall,
Rustomjee Urbania offers families a chance to live in ultimate comfort and opulence,
without venturing too far from home

 DOSTI WEST COUNTY

An impressive residential township in Balkum, Thane West, Dosti West County revives the
feeling of living amid the countryside in the middle of the city. The project is built in 4
phases - Dosti Oak, Cedar, Westwood, and Pine. Its luxe 1,2 and 3 BHK residences,
dedicated green landscaping, and modern amenities will redefine your lifestyle. Besides
appealing amenities such as Olympic-sized pools and clubhouses, the township also comes
replete with restaurants, a library, a creche, and even guestroom!

And as you venture outside the township, the surrounding vicinity of Balkum further hosts
a fine collection of landmarks - Jupiter Hospital, C. P. Goenka International School,
Viviana Mall, & Upvan lake are within 15 minutes. Moreover, the project is right near the
Eastern Express Highway and the upcoming Balkum metro station as well. With such a
futuristic locale and stunning lifestyle offerings, Dosti West County brings a lavish, urban
green lifestyle right around your city corner!

 RAYMOND TENX

With its base at Pokhran Road in Thane, Raymond Realty offers 3 beautifully styled
projects - Codename Beyond, TenX Habitat, and Eden. Encircled by abounding trees, these
projects feature towers with contemporary 1, 2, 3, & 4 BHK residences that reflect
Raymond's uniquely classic style and timeless charm. The presence of extraordinarily
quirky amenities such as tea houses, butterfly gardens, climbing walls, and reflexology
paths, to name a few, add to the unrivalled luxury of these Raymond projects.

37
Furthermore, these properties open up all the benefits of Pokhran Road to you, where
popular landmarks and commute roads such as Jupiter Hospital, C.P. Goenka International
High School, Viviana Mall, and Eastern Express Highway are within 10 minutes away.
These Raymond projects offer sheer luxury and beautiful landscaping in an attractive
neighbourhood, enabling you to live a high-quality lifestyle completely beyond the
ordinary.

38
  RUNWAL ENCHANTED

Enveloped by the lush landscapes of Kolshet in Thane, Runwal Codename Enchanted offers
you a dream home near flowing rivers and beautiful greens. The property offers 1 and 2
BHK waterfront apartments, lots of open spaces, and transcending natural views. Equipped
with more than 70 lifestyle amenities - the property houses theme gardens, an art cafe and
library, rock climbing, a mini theatre, a bowling alley, & a sky promenade - to name a few.

Being close to the Ulhas River, the property is a serene little pocket in the middle of the
hustle-bustle of Thane. Yet, it is incredibly close to the city's top landmarks and commute
routes as well! The project is close to Ghodbunder Road, Eastern Express Highway, Thane
Railway Station, & LBS Marg. Moreover, the University of Mumbai (sub campus),
Hiranandani Foundation School, Bethany Hospital, Hiranandani Business Park, and The
Walk High Street are all within 15 minutes. In short, Runwal Codename Enchanted turns
your home into a permanent riverside retreat, where the call of the wild is stronger than the
sounds of the city.

 PIRAMAL VAIKUNTH

Overlooking the majestic Yeoor hills and the pristine Thane Creek - Piramal Vaikunth
brings the incredible joy of living beside lush surroundings. Its 1.5, 2, and 3 BHK
residences and 5 BHK townhomes offer every luxury, with a select few equipped with an
elegant study, digital home automation, and stunning views. Here, amenities abound in the
form of an Amphie theatre, jogging track, fun treehouses, dog park, yoga terrace, an urban
farming space, and more! The property is also replete with key facilities such as an ATM,
Library, clinic, cafe, temple, and banquet hall.

39
Nestled at Balkum, the vicinity around the property boasts the finest landmarks, schools,
healthcare, and entertainment - DAV Public School, Jupiter Hospital, Lake City Mall, and
Viviana Mall are a few. Right near the upcoming Balkum metro station, it is also close to
the Eastern Express Highway, Majiwada Junction, and Thane Railway Station. With such
an appealing locale, Piramal Vaikunth offers you the luxury of choosing both - the bustling
city and the sprawling countryside

CHAPTER 6

PROJECT OBJECTIVES

To understand the pricing of our project and also our competitors to know the market trend
and also understand the consumer need and perception before buying a flat.

To know what are the pricing strategies used by the real estate companies for deciding the
price considering micro and macro factors

PROJECT REPORT DEVELOPMENT PLAN

1. Visit Competitors and understand the project plan and pricing.

2. Understand market value, competitors’ price.

40
3. Interact with channel partners and understand their requirements from customers
perspective
4. Create Questionnaire and note responses as per the words shared by the channel partners

41
 CHAPTER 7

RESEARCH METHODOLOGY

RESEARCH OBJECTIVE

 To find out various factors based on which the price of the flat is dependent

 To study the impact of pricing on consumer buying behaviour

 To study the consumer needs and perception before buying a flat

RESEARCH TYPE

The research approach employed in this study encompasses a combination of exploratory,

descriptive, and casual methods. The exploratory phase involves identifying and examining the
various factors considered by potential homebuyers in Thane before purchasing an apartment.

Additionally, a competitive analysis or comparison between Kalpataru Park city project and other
nearby developers is conducted, contributing to the descriptive nature of the study. Finally, a
survey is administered to gather data on various parameters considered by homebuyers, further
solidifying the causal element of the research.

Therefore, the overall research approach can be characterized as a blend of exploratory,

descriptive, and casual methods, enabling a comprehensive understanding of the factors
influencing homebuyer decisions in Thane.

DATA COLLECTION SOURCE

This research will require data from primary source. In order to analyse the consumer needs
and perception before buying. I had collected data by interaction with the walk-in channel

42
partners and customers at Kalpataru Park city.

43
 DATA COLLECTION TOOL

All the data was collected by face-to-face interaction with the channel partners,
customers and individual response was mentioned into Google form.

DATA COLLECTION TYPE

The data collected for this research or survey was more of qualitative data. As the response
was given by only the walk-in customers at Kalpataru Park city.

Since the responses was noted after face-to-face interaction which helped me to get more
accurate and genuine response which helped me to justify correctly.

Hence it was more qualitative data.

REVIEW OF LITERATURE

The real estate market holds significant importance in the overall economy, playing a crucial role
in achieving national stability and fostering economic growth. Given its prominence, researchers
have extensively studied the impact of key macroeconomic variables on real estate price trends,
employing diverse methodologies and approaches.

44
 CHAPTER 8

DEVELOPMENT OF REAL ESTATE SECTOR POST INDEPENDENCE

India's Real Estate Journey: From Destruction to Planned Development

Despite a rich architectural heritage, India's real estate faced devastating blows from
invaders, particularly the British, Arabs, and Afghans. Their plunder and destruction left
many homeless and the sector in shambles. Recovery was slow, taking years to overcome
the trauma and rebuild.

However, 73 years after gaining independence, India's real estate has seen gradual but
steady growth. Urbanization fueled by population and industrial expansion has driven
demand, paving the way for planned development and adoption of new technologies.

The partition of India and Pakistan in 1947 resulted in the loss of Lahore, a thriving
economic hub, to Pakistan. This created a void for Punjab, India. Consequently, the 1950s
and 1960s witnessed the emergence of new planned capitals like Chandigarh and
Gandhinagar.

One of the first planned cities in post-independence India, Chandigarh stands as a testament
to visionary leadership. Conceptualized by Prime Minister Jawaharlal Nehru and designed
by renowned architect Le Corbusier, it embodies 20th-century modern urban planning and
architecture. Nestled at the foot of the Shivalik Mountains, Chandigarh offers a captivating
experience of planned development.

Though the post-independence journey of India's real estate has been gradual, it has been
marked by resilience and progress. As the nation continues to urbanize and its economy
thrives, the real estate sector is poised for continued growth and development.

Over the next decade, the Maharashtra Town and Area Planning Act was passed in 1966. It
was the first time an Indian state passed such a property law. This gave great impetus to other
state governments to design such laws. Considering housing as a basic necessity, the

45
 government has given a great impetus to the housing and real estate sector, although it
has remained in an unorganized sector for a long time. To stimulate the housing industry, the
central government established organizations such as the Urban and Housing
Development Corporation in 1970, the City & Industrial Development Corporation
in 1971, and the Housing Bank. in the country in 1988.
Monetary policy liberalization in 1990 was the most important period of

reform in the real estate sector. This has allowed a large number of multinational
companies to enter India. Their entry has created a huge demand for residential complexes
and commercial spaces. This has led to an increase in demand for skyscrapers. All major
cities like Mumbai, Delhi, Kolkata, Chennai etc. A large number of skyscrapers began to
have high-tech input from architects around the world.

1990: A Turning Point for India's Real Estate Boom

The year 1990 marked a pivotal moment in India's post-independence history. A looming
economic crisis, fueled by a growing fiscal imbalance and tightening monetary policy, threatened
the nation. However, the government's bold move to liberalize monetary policies proved to be a
game-changer. This decision opened the doors for multinational companies to enter India, setting
the stage for a dramatic transformation.

The influx of foreign investment and capital from NRIs in the early 1990s triggered a real estate
boom unlike anything India had ever witnessed. Cities across the country experienced exponential
growth, as towering skyscrapers began to dot the skyline.

The rise of IT giants in cities like Bengaluru and Hyderabad was a major catalyst for this growth.
As the IT industry flourished, it spread to other parts of the country, transforming cities like
Kolkata (with its Salt Lake Zone 5 dedicated solely to IT companies), Gurugram, Noida, Vashi
(Mumbai), Pune, and Chennai.

From the early days of the Y2K bug onwards, India's IT and ITES sectors have left an indelible
mark on the global stage. This remarkable success story is inextricably linked to the real estate
boom that paved the way for this technological revolution.

46
 Financing of real estate projects was facilitated by allowing foreign direct

investment in 2005, allowing foreign investors to participate. The shopping mall concept in
India was pioneered by Spencer Plaza in Chennai, launched in 2000 and followed by Ansal
Plaza in Delhi.
In 2006, the Indian government sanctioned the modernization

of their Brownfield airports, such as Mumbai, New Delhi as well as Greenfield airports such
as Bengaluru through a public-private partnership model. This has led to a surge in real estate
development around the airport
Real Estate Investment Trust (REIT) was introduced in 2014 to assist investors with
limited budgets. The Real Estate Regulations Act (RERA Act) went into effect in
2017. The act also brings transformation and empowerment to homebuyers.

The Government has announced that Pradhan Mantri Awas

Yojana will provide basic accommodation to every Indian by 2022. Through the Union
Budget 2019, the government has announced an additional deduction of up to 1 Rs 5 for
interest paid on loans until March 31, 2020 for the purchase of a house worth up to Rs
45,000,000. With rapid urbanization, the demand for housing is increasing. Therefore, the
real estate sector in India has a very wide range of activities in the future.
The current situation due to COVID-19 will have a negative impact on the growth of
the real estate sector, but the recovery must be in line with the government's plan.

Pune has the highest employment rates among SMEs and electronic component
manufacturers. NCRs of Chennai and Delhi are then the auto industry of Ahmedabad,
Chennai, and Pune. The 3PL, e-commerce, and retail categories make up 34%, 26%, and 9%
of the overall market, respectively. rent for offices, respectively. In the fourth quarter of
2016, there was a total private investment in real estate of Offices increased their market
share by 71% in 2009, followed by retail (15%) and housing (12%). as well as warehousing
at 7% apiece. India's top 8 cities' combined rent of is 16

47
2. In 2021, the QoQ growth rate will be 12.4%. 11.56 million square feet of the Indian net
office market were absorbed. in 2021's fourth quarter. This is an increase of 86% from
the previous quarter.

In eight micro markets across India, a total of 55,907 new residences were sold between
July 2021 and September 2021 (increasing 59 percent annually).

48
IMPACT OF MACRO ECONOMIC FACTORS IN REAL
ESTATE INDUSTRY OF INDIA

Macroeconomic Factors and Their Impact on India's Real Estate Sector

Macroeconomic factors play a crucial role in shaping a country's economic trajectory, both at
the national and regional levels. Key factors like Gross Domestic Product (GDP), employment
rate, inflation rate, interest rate, Foreign Direct Investment (FDI), stock performance,
government policies, and production cost significantly influence economic growth.

In India, the real estate construction industry boasts the second-highest employment
generation, trailing only the agricultural sector. With an estimated 33 million individuals
employed in construction activities (Nithyamanohari & Ambika, 2014), it serves as a vital
pillar of the Indian economy. Furthermore, the real estate industry ranks fourth in attracting
FDI, highlighting its importance as a recipient of international investments. Experts project an
impressive Compound Annual Growth Rate (CAGR) of 15.85% for the real estate sector
between 2015 and 2028, a significant jump compared to the current CAGR (IBEF, 2016).

However, the growth trajectory of the Indian real estate sector remains tethered to fluctuations
in macroeconomic factors. This article explores the specific impact of each key
macroeconomic factor on the growth of this crucial industry

GDP AFFECTING REAL ESTATE MARKET

Rising GDP Fuels Real Estate Growth in India

India's GDP and real estate sector share a symbiotic relationship. As GDP rises, increased
investment in infrastructure and business stimulates job creation. This leads to higher incomes
and purchasing power, driving up demand for both rental and purchased housing.
Consequently, property prices in those regions experience a similar upward trend (Singh,
2017).

On the other hand, real estate growth also contributes to GDP growth. Secure and affordable
housing increases employment and educational opportunities for individuals. It also enriches
communities leading to a better civil society and quality of life. According to IBEF (2017),
49
India’s real estate sector contributes to 5-6% GDP growth. The sector’s capital to output ratio
is 0.61 which means that 0.61 units of capital produce 100 units of output. Its labour to output
ratio, i.e. the number of persons employed to produce a lakh unit of output, is 2.34 and is the
highest among all the sectors.

UNEMPLOYEMENT AND RISING POPULATION AFFECTING

REAL ESTATE MARKET

Population Growth and Unemployment: Dual Challenges for India's Real Estate

India's massive population of 1.34 billion creates an acute housing shortage. This burgeoning
population fuels demand for residential units, further exacerbated by rural-to-urban migration
fueled by employment opportunities (Raghavan, 2016).

However, unemployment presents a countervailing force. High unemployment rates lead to

reduced income, hindering the purchasing power of individuals and weakening demand for
real estate (Rogers & Winkler, 2013). Prolonged unemployment can also lead to demotivation
and discouragement towards investment (Gan & Zhang, 2013). Companies in countries with
high unemployment are less likely to require larger office spaces, further impacting the
commercial real estate market.

The Economics Times (2017) estimates that India's unemployment will reach 17.8 million in
2018, potentially leading to decreased purchasing power and a decline in real estate demand.
Addressing the dual challenges of population growth and unemployment will be crucial for
ensuring a sustainable and healthy real estate market in India.

50
 Change in inflation rate majorly affects the real estate market

Inflation, Construction Cost, and Interest Rates: Their Impact on India's Real Estate

Inflation: A rising inflation rate, driven by fluctuations in the price of goods and services, can
erode purchasing power and decrease demand for real estate. This leads to a decrease in
property prices, as seen in Delhi-NCR with a 50% decline in property sales due to the 2014
recession and high inflation (Datta, 2015).

Construction Cost: The cost of building materials like wood, concrete, and steel directly
impacts real estate prices. A recent implementation of the GST in India is expected to reduce
construction costs, potentially leading to lower property prices and a revival of the industry
(Zainal, Teng, & Mohamed, 2016).

Interest Rates: High-interest rates increase borrowing costs, making real estate investments
less attractive due to the devalued present value of future cash flows (Razin, 2017).
Conversely, falling interest rates, as witnessed in India recently, can boost demand for
property by making housing loans more affordable (Sharma, 2017).

Understanding the complex interplay of these three factors is crucial for analyzing the current
and future state of India's real estate market.

FDI is a major source of funds in the real estate sector

Real estate of India is the second largest sector generating FDI inflows. Higher FDI inflow
leads to the higher construction and development of new properties. Also, drop in FDI results
into lower private equity which is a major source of funding in the real estate sector of India.
Any change in FDI inflows subsequently affects the funding capability in the sector (The
Economic Times, 2015). To boost foreign investment in the sector, the Indian government in
2015 announced the decision to allow 100 % FDI inflow through automatic route in
construction and development projects. Also, the Indian government has banned External
Commercial Borrowings (ECBs) and Foreign Currency Convertible Bonds (FCCBs) routes for
raising funds for investment into real estate which will enhance the importance of FDI in real
estate sector.
51
 Stock Market and Government policies directly affect the real
estate market

The stock market of a country has a significant impact on its real estate. Stock market majorly
works on credit. When stock markets are bullish, investors look for alternative investment
instruments and real estate is a lucrative option. Moreover, bullish markets also lead to lower
interest rates on account of a positive market outlook (Merrill, 2015). Lower interest rates
prompt more demand for home loans, boosting real estate. The 2008 recession was a landmark
event in this case. As stocks across the globe crashed, the real estate markets were one of the
first to take a hit. Thus, the stock market directly affects the demand and growth of the real
estate market.

Legislation of a country plays a major role in real estate demand and prices. Policies related to
tax rates, subsidies, deductions and rebates, etc. are directly responsible for the fluctuations in
demand for the real estate market (Puri, 2014). For example, to improve the housing market,
the Indian Government has announced several measures such as:

 repealing the Urban Land Ceiling (ULC) Act of 1976,

 New Land Acquisition,

 Rehabilitation and Resettlement Act,

 Service Tax abatement on construction activity,

 Real estate (Regulation and development) Act 2016,

 Interest subsidy for first home buyer 2016,

 Goods and Services Tax 2017 and

 Benami Properties Act (Ramnani, 2016).

These government policies have transformed the unorganized real estate sector towards
dynamic growth by recognizing the requirement of infrastructure development for economic
growth of country.

52
Interest rate

Rising Interest Rates: A Chill on the Housing Market

When seeking to control excessive cash flow within the economy, governments may resort to
hiking interest rates on loans. This forces banks to restrict borrowing and tighten their mortgage
approval criteria.

Since mortgage interest rates directly impact monthly payments, a rise in interest rates translates
to higher monthly payments for borrowers. This increased financial burden discourages potential
buyers from entering the housing market.

In countries like Canada, where variable-rate mortgages are prevalent, even minor interest rate
hikes can significantly impact housing affordability. A property that was previously within budget
might suddenly become unaffordable due to increased monthly payments.

Therefore, rising interest rates can act as a significant drag on housing market activity by making
it harder for buyers to qualify for mortgages and afford monthly payments.

Economic strength

Real Estate: A Mirror to the Economy's Ups and Downs

53
The real estate market is often described as a reflection of the broader economy's health. During
economic boom, certain segments of the real estate market flourish, experiencing increased
demand and rising prices. Conversely, when the economy experiences a downturn, the real estate
market suffers, with stagnant sales and falling prices.

When the economy is flush with cash, home prices tend to rise. Sellers capitalize on the
availability of readily accessible loans, knowing that more potential buyers can afford their
properties. This influx of buyers can lead to a rapid increase in price, creating a bubble that could
eventually burst.

However, when the cash flow dries up, the market dynamics shift. With fewer buyers competing,
sellers adjust their prices to attract potential buyers. This often results in a decrease in property
prices.

For individuals with adjustable-rate mortgages, economic downturns can be particularly

challenging. As interest rates rise, their monthly payments increase, potentially exceeding their
affordability limit. This can lead to difficulties in making payments and, in some cases, even
foreclosure on their properties.

Therefore, the real estate market serves as a sensitive indicator of the economy's overall health. Its
performance is directly impacted by fluctuating financial conditions, reflecting both the ups and
downs that economies experience over time.

54
MICRO ECONOMIC FACTORS INFLUENCING REAL ESTATE
PRICES

1. Location of the property

Location reigns supreme when it comes to property value. Even the most dazzling,
modern home will struggle to fetch a premium price if situated in a less desirable
location. Proximity to essential amenities is key, with properties in city centers or near
public transport, beaches, and work areas commanding higher valuations. NAR's
Community Preference Survey revealed that 57% of respondents would prioritize a
shorter commute over a larger yard. For younger generations, access to social and
recreational hotspots is crucial, reflecting their lifestyle-driven approach to home buying.

Parents prioritize properties in areas with good schools, as evidenced by 78% of

respondents valuing neighbourhood quality over the size of the home. The immediate
community, which shapes a family's social life, also plays a significant role. While these
factors are intangible and independent of the property's physical structure, they hold
immense power to either elevate or diminish its value.

2. Comparable properties

The Crucial Role of Comparable Properties in Real Estate

Property sellers rely heavily on "comparable properties," or "comps," to determine a market-

acceptable price for their homes. Comps are similar properties in the same neighbourhood that
have recently sold. Analysing their selling prices gives sellers a clear benchmark to set their
asking price.

Setting the asking price too high can result in the property languishing on the market for an
extended period with minimal interest. Conversely, pricing it too low would lead to a potential
loss in value for the seller.
55
Maintaining consistent pricing across comparable properties is crucial for market stability. A
property's price doesn't just affect its own sale, but also the value of similar properties in the
vicinity. For instance, if sellers begin accepting offers significantly below the average price, they
could inadvertently trigger a downward trend in the entire market, negatively impacting the value
of neighbouring properties.

Therefore, understanding and utilizing comparable properties is an essential step for both buyers
and sellers in the real estate market. By carefully analysing these reference points, they can
navigate the market with confidence and make informed decisions that maximize their respective
interests.

3. Inspection report

In most cases, inspection reports drive the value of property down. Buyers who are ready with
cash often ignore the need for an inspection report, but mortgage lenders don’t. The inspection is
conducted to uncover all the hidden defects on the property. Such defects usually mean more
dollars in repair costs once the buyer signs the dotted lines. With an inspection report, the more
defects uncovered, the lower the price of the property. When a buyer has a list of all the devaluing
aspects of the property, then they can negotiate better.

Another downside to inspection reports (for sellers) is that once it is conducted, the seller will
have to inform all future potential buyers of the report. This means that they will never be able to
list that property for their original asking price again. The only way to get around this clause will
be to make some renovations to the property, then request another evaluation.

4. Fixings and fixtures

Just as the defects in a property can reduce its value, its fixtures and upgrades can increase its
value. Many buyers are on the look-out for homes that are move-in-ready. They have no interest
in making repairs, even if it will fetch them a better deal. Instead, they are ready to pay more for a

56
fully-functional house. A home with upgraded roofing, kitchen, or bathroom can fetch a lot more
money than other similar properties in the same neighbourhood.

5. Appraisal value

An appraisal is a key process in the real estate industry, determining the fair market value
of a property. Conducted by a licensed professional certified by an organization recognized by the
Canadian National Association of Real Estate Appraisers (CNAREA), an appraisal is typically
required when a buyer needs financing or an owner seeks a home equity loan. Lenders rely on the
appraised value to determine the maximum loan amount they are willing to offer.

If the appraiser discovers significant structural damage, the bank may withhold loan
approval until the seller rectifies the issue. This highlights the crucial role of professional
appraisers in assessing property value and safeguarding lenders' interests by informing their loan
approval decisions.

CHALLENGES FACED BY REAL ESTATE SECTOR

Since the 1990s, the Indian real estate sector has undergone significant evolution, emerging as
one of the world's fastest-growing markets. It not only attracts substantial domestic
investment but has also become a magnet for foreign capital. The industry's robust growth can
be primarily attributed to India's expanding population, increasing income levels, and rapid
urbanization. Despite the optimistic outlook for the future, the sector grapples with challenges
that hinder it from fully realizing its growth potential. Concurrently, it faces nuanced
challenges such as a surging demand for housing in tandem with a decline in project launches
in semi-urban and rural areas, coupled with an escalating inventory accumulation in urban
areas juxtaposed with a shortfall in demand. These prevailing trends underscore the significant
hurdles currently impeding the progress of the Indian real estate sector. The provided figure
illustrates the trajectory of inventory sales and new project launches in major Indian cities
from 2010 to 2016.

Job loss in other sectors affect the Indian real estate sector
majorly

57
People earning in the bracket of Rs. 2 million and Rs. 8 million per annum are the major
investors in the Indian real estate sector. They thus make up for a huge portion of the factors
responsible in the sector’s growth. Most people in this category are employees in IT and other
service sector companies. According to IIFL (2017) India’s IT and BPO sector employs over 4
million people. However, recently according to many reports, employees working in the
middle management of these industries are at a higher risk of job loss due to increased
automation and artificial intelligence tools (Money Control, 2017). This affects their ability to
purchase a premium or mid-premium house. Thus the issue of job loss has hit the sector
directly, and demand for housing will continue to drop (particularly in cities) as a result.

Economic slowdown since recession has affected the real estate

sector

In 2006, the Indian real estate sector experienced a prosperous phase marked by
unprecedented property prices and soaring demand. However, the landscape underwent
significant changes in 2008 with the onset of a recession, leading to challenges such as
depleted funds in banks, stock market crashes, a currency crisis, and widespread job
losses (Chaturvedi, Guru, Singh, & Sharma, 2013). The affluent segment deferred real
estate investment plans, resulting in a downturn in housing demand. Consequently,
developers faced difficulties in attracting buyers and tenants for their overpriced
properties, leading to forced stock liquidation at a loss (Tranquils woods, 2012).

High interest rate and and unclear tax rates

A significant challenge confronting the real estate sector is the impact of higher interest
rates. In comparison to countries like the USA and the UK, Indian banks tend to offer
loans at rates that are 7-8% higher. Presently, the interest rate stands at around 10%,
which is three to four times greater than the interest rate levied by US banks for property
purchases (IBEF, 2008). The elevated interest rates contribute to a diminished demand
for property, triggering a ripple effect. Consequently, developers in the real estate sector
consider the interest rate on home loans as a formidable challenge. Another major hurdle
is the high tax rates and lack of transparency in the country's taxation system. Until
recently, both developers and buyers grappled with multiple taxes such as service tax,
VAT, and excise duty, each varying from state to state. The absence of tax clarity,
58
 coupled with high prices, deterred investments. However, with the recent implementation
of a standardized tax format (GST at 12%), there is an anticipated shift in this scenario.

Difficulty in getting bank loans and delay in possession

Securing a home loan from banks and non-banking financial institutions (NBFCs) poses
common challenges for seekers. A primary reason is the frequent rejection of applications,
often attributed to a lack of understanding about documentation requirements and inadequate
credit scores. Additionally, potential borrowers may face hurdles in accumulating the
necessary sum for the down payment. The decision-making process is further complicated by
dilemmas in selecting the appropriate interest rate, prolonged property evaluation timelines,
and the protracted loan disbursement process (Financial Express, 2016). Although banks
typically expedite loan approvals, the actual disbursement process tends to be time-
consuming. Throughout this period, customers incur heightened costs and experience
diminishing interest in the property. Despite the introduction of user-friendly mobile
applications and instant customer service, this issue remains a significant concern in the
financial sector.

Many developers embark on multiple projects simultaneously, commencing advertising well

before project completion to attract customers. However, interruptions in construction due to
various reasons, such as insufficient funds, legal disputes, or failure to obtain necessary
licenses, result in project delays. Consequently, buyers not only face delays in obtaining their
property but also bear the burden of loan repayments.

59
 Inventory pile-up in the Indian real estate sector

As per the survey conducted by ASSOCHAM, several major Indian cities have
experienced a significant downturn in both property prices and lending rates. Delhi-NCR,
in particular, witnessed the steepest decline, with a 25-35% drop in demand (SIC, 2015).
The accumulation of unsold inventory can be attributed to various factors, including a
decrease in demand, legal disputes, project delivery delays, inadequate planning, and
more. In Delhi-NCR alone, this situation has resulted in an excess of 250,000 units of
unsold residential houses. While many builders may perceive unsold flats as works in
progress, the reality is that until these properties are sold, they are burdened with high-
interest rates. This not only impacts their financial standing but also contributes to delays
in launching new projects.

Low rental yield from the Indian real estate sector

The determining factor for property purchase and its value lies in the rental yield
(Jagannathan, 2016). A high yield is crucial for enticing property investments. In India,
however, rental yields are strikingly low, ranking among the world's lowest at 2.2%
(Equity master, 2016). This discourages potential buyers viewing properties solely as
investments, fostering scepticism in their purchase decisions. Despite a consistent
increase in property prices, the gross rental income in major cities such as Mumbai, New
Delhi, and Bangalore remains modest (Shanu, 2016; Singh, 2017). This disparity suggests
that real estate in certain Indian locations is overpriced, rendering it an unattractive
investment option. Consequently, the low rental yield emerges as a significant challenge
for the real estate sector.

Need of support from the Government

Of all the challenges reviewed real estate sector of India, only two issues have lately been
addressed on a macro scale;

1. eradication of a complex tax structure with the implementation of GST and

60
 2. addressing inventory pile-up by implementing the RERA (Real Estate Regulatory
Authority) bill.

Although it will take some time for the effect of these changes to show, it has uplifted the
mood in the sector. However, other issues primarily that of job loss in other sectors is yet to
be addressed effectively. Implementation of attractive schemes and policies such as
Affordable Housing, Housing for All, etc. will be redundant in face of growing issue of lack
of jobs nation-wide, particularly in rural areas. Therefore, more attention needs to be paid by
the governments in tackling this challenge.

61
PROPERTIES IN THANE

Thane has a variety of housing options for all price ranges and sorts of home seekers.
Thane's infrastructure has changed to meet the needs of a growing metropolis as it
transformed into a thriving real estate destination.

In addition to housing alternatives that overlook beautiful flora and bodies of water, this
culturally diverse city also provides a safe and secure atmosphere, creating the ideal balance
between the environment and the environment. education and growth.

In addition, CREDAI-MCHI Thane members are always transparent in their real estate
transactions. Despite the pressure of the pandemic, real estate prices are also stable and never
out of reach of ordinary people. Thanks to that, Thane becomes the number one choice of
home buyers.
Thane has a great physical infrastructure framework with future growth counted
towards projects, planned and in various stages of implementation
Mumbai Suburban Railway

The eastern and western suburbs of Mumbai as well as Navi Mumbai are all accessible from
Thane through the Thane-Belapur Road, the NH-8, the Mumbai-Nashik Expressway, and
reachable with ease. Any area of the city is easily accessible

62
Work on the extension of the Kopri Bridge is now being done to further enhance market
access. The Thane-Borivali twin tunnel development is also anticipated to start shortly, and
MMSDA has also chosen to expand the Eastern Expressway to Thane. The operation of the
subway and water taxi would not only reduce traffic, but also aid Thane's rapid growth.

Both end users and investors drive the Thane real estate industry. The city provides a
calm working environment with little administrative obstacles. Property developers in
Thane do not use "easy to do business" as a slogan; rather, it is a reality.

Additionally, CREDAI-MCHI Thane offers thorough support to builders, fostering continued

real estate expansion. All sorts of residential constructions, from freestanding buildings and
villas to urban complexes, have shown constant demand throughout time, assuring high
returns for developers. develop.

Thane has a variety of micromarket lodging alternatives throughout the city and the
surrounding areas. There is something for everyone, from modest and moderately priced
housing buildings to luxurious projects and luxurious villas.

Additionally, all homes were delivered "on schedule" as promised to buyers despite the
difficulties we had during the Covid-19 lockdown.

The demand for ready-to-move-in houses and projects with completion dates within the next
six months is currently strong across all market categories.

63
TOP REAL ESTATE DEVELOPER IN THANE

1. Kalpataru Parkcity and Paramount, Kalpataru Limited

2. Godrej Ascend, Godrej Properties

3. Lodha Amara, Lodha Group

4. Hiranandani OHP, Hiranandani

5. Rustomjee Urbania, Rustomjee

6. Dosti West County, Dosti

7. Runwal Enchanted, Runwal

8. Piramal Vaikunth, Piramal

9. Raymond TenX, Raymond

64
 CHAPTER 9

COMPETITION ANALYSIS

Developer Project Carpet Area Price RPS Possession Payment White

(Sq.ft) (Cr) Scheme goods
Kalpataru Parkcity 531 0.96 18079 2025 CLP No
Lodha Amara 618 1.01 16343 2023 CLP Yes
Runwal Enchanted 508 0.87 17125 2026 CLP No
Godrej Ascend 534 0.98 18352 2028 CLP No
Dosti West 661 1.08 16338 2024 CLP No
County
Piramal Vaikunth 495 0.93 18787 2024 10:90 Yes

By comparing we understood that per square feet price of Kalpataru is almost same as Godrej
Ascend and Piramal Vaikunth. But its little more than other developers.

65
SURVEY OF CUSTOMERS VISITED AT KALPATARU PARKCITY, KOLSHET,
THANE.

As per survey done, almost 43% of the walk-in customers already stay in Thane. The purpose
of looking for new flat is needing more space, increase in family members, new construction
and price is low in under construction project.

Also, about 30% of walk-in customer belongs from Mumbai suburban. The purpose of
looking flat at thane is coming to more open space as Mumbai is very crowed. Also, the price
of same carpet area at Mumbai is much higher than Kolshet road Thane.

With more connectivity in near future like metro 4 and metro 5, people are choosing thane as
the new resident for their family.

66
About 55% visited customer at Kalpataru Park city has 4 members in family.

Number of family members is the important factor before buying home. This survey will also
help developer to understand the customer needs and create more inventory by keeping
demand in consideration.

About 55% of the visited customers are looking for 2bhk. We understand that most of the
family which consist of 4 members are preferably looking for 2bhk.
67
And some of them in this group also looking for spacious/largest 2bhk and not going for 3bhk
configuration.

Since the choosing about the configuration is depend on and vary customer to customer as
per their needs and many factors are depended other than members count.

For example, one family visited site has 4 members but they were looking the 3bhk
configuration. By discussion I got to know the reason behind the choosing 3bhk over
spacious 2bhk was their family function during festivals like Ganesh Chaturthi etc.

As per discussion with the attended clients, we got to know their budget. As per survey
almost 23% of the visited customers has the budget of INR 80 lacs to 1 Cr.

And almost 20% has the budget more than INR 1 Cr.

Understanding the budget of the clients helps us to pitch our product. By knowing their needs
and budget helps Manager to filter out most of the variations and show only the
configurations which fulfils all the parameters.

Also, this survey helps organization to understand the ratio of the customers and this helps
designing the new projects in Thane location.

68
About 29% of the visited customers are looking for under construction project which will be
complete within 3 years.

This gives time to customers for payment as per construction.

But there are also some customers who is looking flat which have possession within 1 or 2
years.

And about 19% customers are looking for ready to move in flat. The reason behind is they
don’t want to go in under construction because of trust issue regarding the timeline of project
and also some are concerned of paying rent as well as EMI at the same time.

There is almost all type of customers, so it is important to know customers’ demands and
with respect to that we can estimate that it is potential buyer or not.

69
With discussion with the customers, I got to know that almost 77% of them are looking of
self-occupancy.

The purpose of this survey is to understand the consumer buying behaviour and this also
helps brand to promote their products at right direction.

Most of them think ROI is very low in investing to another apartment and also don’t want to
stretch more in this investment.

But about 23% of them are buying for investment purpose. All the factors are depended on
macro level. Since most of them have the capital but they feel risk in keeping amount in the
banks and rather invest in real estate which directly said as the investment and after some
time the capital gain is also more.

70
 This is the survey to understand the customers who are visiting other projects too. This helps
to understand the overall market trend and by discussion helps to know the competitors
projects and their offerings.

Later it helps to use in our sales strategy to come up with an edge if there is any scope.

Almost 90% of the visited customers like the concept of township project of Kalpataru
Parkcity which completed their all the needs.

71
 CHAPTER 10

PRICING STRATEGY

View Premium Charges-

Considering premium charges, pricing varies between different phases of residential areas,
providing a means of filtering options for both customers and sales personnel. The higher demand
for superior views often results in limited inventory availability in those specific locations.
Therefore, ensuring inventory availability across various phases contributes to an enhanced
overall buying and selling experience.

Floor Rise-

In current times, numerous developers eliminate floor rise charges, but they indirectly incorporate
these costs by adjusting the pricing of middle-floor units to compensate for all flats. Kalpataru,
however, applies floor rise charges, promoting fairness for buyers of lower-floor units. Beyond
the 20th floor, the price remains constant, preventing a substantial increase in pricing for buyers
interested in top-floor units.

Payment Plan-

Payment plans can either adopt a bank subvention scheme or follow the construction link plan. In
the case of Kalpataru Parkcity, only the construction link plan is in place. However, due to the
high value of the homes and concerns related to under-construction projects, potential buyers
hesitate to opt for the construction link plan. Instead, they express a preference for bank
subvention schemes, such as the 10:90 scheme.

72
 CHAPTER 11

FINDINGS

• Many express dissatisfactions with the construction link plan, requiring a substantial payment of
40% to 50% within a month, especially when the project spans approximately three years.
Suggestions include more balanced plans, like a 20-20-20-20-20 structure, or alternative
subvention plans such as 20%-80% or 10%-90%.

• Investors face uncertainties when committing to under-construction projects with extended

timelines. The pandemic-induced delays and possession date extensions add financial stress as
buyers juggle rent and EMI payments.

• Ongoing concerns about Covid persist, dissuading some from investing in under-construction
projects. The preference leans towards ready-to-move-in properties for reassurance.

• The recent rise in RBI's Repo rates has led to an increase in home loan interest rates, influencing
buyer behavior in the real estate sector.

• The April 2022 stamp duty hike has had a notable impact, dampening the buying trend in real
estate.

• Escalating raw material costs contribute to a surge in flat prices, further challenging the real
estate market.

73
 CHAPTER 12

CONCLUSION

The predominant homebuyer demographic at Kalpataru Parkcity hails from Thane,

and among various typologies, the 2 BHK configuration emerges as the most
sought-after. This preference is attributed to the fact that most families comprise
four members, and the spacious 2 BHK units effectively cater to their needs.

Additionally, the 2 BHK category aligns with the budgetary constraints of a

majority of clients who have visited the site.

Kalpataru's offering of 2 BHK units in approximately 20 different sizes provides

clients with a diverse range of options for decision-making. Furthermore, buyers
express a keen interest in attractive and flexible payment plans that can facilitate
their purchase of an under-construction project.

74
 CHAPTER 13

RECOMMENDATION

 Considering the prevalent demand for 2 BHK units, future phases at

Kalpataru should prioritize planning more 2 BHK carpet area options
rather than allocating extensive space to 3 BHK configurations.

 Recognizing that homebuyers often hesitate due to construction link

payment plans, exploring alternatives such as bank subvention schemes
could mitigate perceived risks associated with under-construction projects.

 Increasing the frequency of events designed for client interaction is

crucial. This proactive approach not only strengthens connections with
existing clients but also fosters the generation of new leads through
referrals.

 Offering a variety of payment plan options becomes imperative in the

current climate, particularly post-COVID-19, where individuals are
investing cautiously. Strengthening partnerships with banks can enhance
the availability of diverse payment plans, accommodating buyers' financial
considerations.

75
 CHAPTER 14

BIBLIOGRAPHY
https://www.ibef.org/industry/real-estate-india

https://www.marketingtutor.net/swot-analysis-of-real-estate-business/

https://timesproperty.com/news/post/thane-buyers-delight-enduser-investors-blid1811

76
77