ASM PROJECT

ON

REAL ESTATE INDUSTRY

SUBMITTED TO: SUBMITTED BY:

MR. NAWAL GUPTA Ramneek S Sandhey (E-46)

Neeraj Nayyar (E-34)

Sumit Bajpai (E-45)

Ashutosh Kumar (E-28)

Vivek M (35)

Mayuri Deka (07)

Anshul Teotia (47)

1
 ACKNOWLEDGEMENT
The universal truth is that credit of accomplishing something worthy goes solemnly to the person
concerned, but it also contains the effort of others.

We express our gratitude to our ASP faculty Mr. Nawal Gupta for giving us continuous
encouragement that helped us a lot in the preparation of this business plan. We also thank our
ADG “Dr Sanjay Srivastava “for his immense support in providing us the necessary resources.
We thank our classmates for the suggestions and cooperation. We are also thankful to our parents
who helped us in collecting the data and gave us the ideas to make this project authentic and
informative.

In the end, we sincerely thank all those who contributed and cooperated with us to complete this
project.

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 TABLE OF CONTENTS

Sl. No Particulars Page No.

1 INTRODUCTION………………...….…….…….………04

2 LITERATURE REVIEW……..………….………...….....06

3 OBJECTIVES…………………………………….…...….07

4 RESEARCH DESIGN……….…..………..…….………08

5 DATA ANALYSIS...…..……..……..………..…...….....09

6 STRATEGIES ADOPTED.………...……….…….….....22

7 LATEST TRENDS………………………….……...........25

8 RECOMMENDATIONS
&LEARNINGS………………………….………………29

9 CONCLUSION………….…….....…...…..………..…....30

10 REFERENCES…...…………….....…..…………..…......32

11 ANNEXURE…………………...……...………………...33

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 INTRODUCTION
The Real Estate Industry

� The real estate industry is one of the fastest growing industries in our economy, with a
Compound Annual Growth Rate of approximately 30%.

� A US$ 16 billion industry at present, it is expected to touch US$ 60 billion in the next five
years. (Ernst and Young)

� The sustainability of growth in the real estate industry has its roots in strong demand
fundamentals:

a. Rapid expansion of the IT/ ITES and business outsourcing industry (including knowledge
process outsourcing and clinical testing outsourcing).

b. Rising demand in the residential sector, encouraged by rapidly increasing income levels.

c. Acceptance of shopping malls as “one stop destinations” for consumers;

d. Growing popularity of Special Economics Zones as preferred destinations for both

manufacturing and service industries.

� There is an estimated requirement of 80 million housing units over the next fifteen years and
200 million sq. ft. of office space over the next five years.

� With a view to catalyzing the investment required to plug the aforementioned supply deficits,
the Government, has allowed FDI up to 100% under the automatic route in specified real estate
development projects, including but not restricted to townships, built-up infrastructure and
construction development projects.

� In December 2007, SEBI, the domestic stock market regulator, issued draft regulations
clearing the way for introduction of Real Estate Investment Trusts (REITs) in India. This move is
also expected to favorably serve the booming property market, by serving as an alternative
source for meeting the capital needs of the sector, particularly for builders who otherwise work
with internal accruals and high-cost borrowings.

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Dewan P.N. Chopra Consultants Private Limited

� Initial Public Offerings have become another popular theme as a means of raising requisite
capital in the real estate industry. This has resulted in the creation of a robust marketplace where
retail investors can participate in the growth story while also offering ability for promoters and
investors to project forward into yet another exit strategy.

� As a result of the aforementioned stimuli, this industry has been receiving increasing focus
from the private equity sector, with PE investments in this industry as a percentage of total PE
investments soaring from 14% in 2005-06 to over 32% in 2006-07.

� It is estimated that more than US$ 5 billion in foreign funds was invested in projects
sponsored by rapidly growing developers in 2007.

� The significant development potential of the real estate industry, coupled with favorable FDI
regulations and increasing focus from the private equity sector, has created substantial
investment opportunities for real estate companies. As at December 2007, total outstanding
investment in 1,885 real estate development projects was US$ 195 billion. (CMIE Industry
Reports)

� As this rapidly growing industry matures into a stable and sustainable economic sector, three
key trends, which are likely to shape its future, are emerging:

o Increased focus on execution risks;

o Increased investments in mixed-use development projects with a view to

extracting maximum synergic benefits; and

o Syndication among real estate developers on execution of “big-ticket”

development projects, i.e. shift from competition to partnership.

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 LITERATURE REVIEW

Fama and French (1992) contended that value stocks of real estate are fundamentally more
risky than growth stocks. Consequently, the superior returns associated with value stocks of real
estate are merely compensation for exposing investors to higher risk.

In 1994, Lakonishok, Shleifer and Vishny posited that systematic mispricing of value and
growth stocks of real estate is caused by investors who naively extrapolate the past growth rates
of firms.

Chen and Zhang (1998) highlighted that value stocks in real estate are riskier because they are
usually firms under distress, have high financial leverage, and face uncertainty in future earnings.

Dubin in 1998 concluded that location is probably the most important variable used to explain
house price. Spatial autocorrelation is present when location is very important to housing price.

Leung, Lau, and Leong (2002) concluded that a purchase/sale by a second home owner can
subtract/add more directly to vacancy, and many studies indicate that prices are sensitive to small
movements in housing vacancy and trading volume.

Capozza, Hendershott and Mack (2004), summarized that there is wide consensus that as
markets grow in employment and population, rents and prices should also increase.

William C. Wheaton and Gleb Nechayev(2005) concluded that average house prices in the
U.S. rose only 18% when adjusted for inflation over the 23 years from 1975 until 1998 .During
this same period, average income per worker increased 12% and income per capita almost 40%.

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 OBJECTIVES

o To find out whether the attributes such as current price, quality, location, future value of
money effect customer’s purchase intentions of a particular brand or not.

o To find out relative importance given by the customers to various attributes of real estate
products.

o To find out relative importance given by the customers to various real estate products.

o To study the various strategies adopted by the real estate companies and also the variation
in those strategies that is how those strategies change from one place to other.

o To find out the reasons behind rejection of real estate products by the customers.

o To find out emerging trends in real estate.

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 RESEARCH DESIGN

The study is based on data collection with a sample size of 100 respondents. The questionnaire
used for the sample survey contains 12 close ended and 2 open ended questions. We conducted
research through descriptive research design. It aims to specify the current market condition of
real estate products. We have tried to find out the association between the brands and the
attributes of real estate products i.e. is there any significant association between the brands and
the attributes while taking a purchase decision for real estate products. Close ended questions in
questionnaire are used for finding out the purchase intention. Open ended questions are used for
studying customer perception

Sampling

Samples for the study were chosen by using random sampling due to its time and cost feasibility.
Sample size was of 100 that is the data was collected from a sample of 100 respondents.

Questionnaire

The questionnaire which used contains both open and close ended questions. It was self
administered and sample size was of 100. There are total of 14 questions in the questionnaire. 12
questions in it are close ended and 2 are open ended. Open ended questions are used to
understand the customer perception about the real estate products.

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 DATA ANALYSIS
Most important finding of the project was that there is attribute consciousness amongst the
customers of real estate and not the brand consciousness and while investing in a real estate
project the customers look at the various attributes like current price, quality, location, future
value of money and the most important attribute is future value of money.

ANALYSIS OF QUESTIONNAIRE

Broad classification of real estate products and the frequency of responses given by the

respondents.

Cumulative
Options Frequency Percent Valid Percent Percentage

Commercial 28 28.0 28.0 28.0

Residential 72 72.0 72.0 100.0
Total 100 100.0 100.0

Finding: Residential products are more in demand as compared to commercial products.

Attributes related to real estate products and relative preference given by the customers.

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 Cumulative
Options Frequency Percent Valid Percent Percentage

Current price 6 6.0 6.0 6.0

Quality 20 20.0 20.0 26.0
Location 25 25.0 25.0 51.0
Future value of money 49 49.0 49.0 100.0
Total 100 100.0 100.0

Finding: According to the customers, future value of money is the most important attribute
related to real estate products.

Real estate brand preference amongst the customers.

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 Cumulative
Options Frequency Percent Valid Percent Percentage

DLF 38 38.0 38.0 38.0

Omaxe 8 8.0 8.0 46.0
Emaar MGF 26 26.0 26.0 72.0
Unitech 20 20.0 20.0 92.0
Any Other 8 8.0 8.0 100.0
Total 100 100.0 100.0

Finding: DLF is the most preferred brand amongst the customers.

Real estate projects preference amongst the customers.

Cumulative
Options Frequency Percent Valid Percent Percentage

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 Group Housing 30 30.0 30.0 30.0

Townships 64 64.0 64.0 94.0

Commercial Projects 6 6.0 6.0 100.0

Total 100 100.0 100.0

Finding: Most preferred real estate project amongst the customers, is townsip(s)

Priority given to various attributes of real estate products by the customers while investing in them
(real estate products).

Cumulative
Options Frequency Percent Valid Percent Percentage

12
 Lower Price 6 6.0 6.0 6.0
Easily approachable 25 25.0 25.0 31.0
Quality & finishing 20 20.0 20.0 51.0
Future value of money 49 49.0 49.0 100.0
Total 100 100.0 100.0

Finding: Future value of money is the most important attribute for the customers, while
investing in a real estate product.

Application of likert scale on the statement whether the branding strategies adopted by

the real estate companies persuade the customers to purchase the products.

Cumulative
Options Frequency Percent Valid Percent Percentage

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 Strongly Disagree 6 6.0 6.0 6.0
Slightly Disagree 18 18.0 18.0 24.0
Slightly Agree 50 50.0 50.0 74.0
Strongly Agree 26 26.0 26.0 100.0
Total 100 100.0 100.0

Finding: 50% of the respondents in the sample slightly agree with the statement whether the
branding strategies adopted by the real estate companies persuade the customers to purchase the
products.

Real estate product preference amongst the customers.

Cumulative
Options Frequency Percent Valid Percent Percentage

Residential Plots 64 64.0 64.0 64.0

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 Commercial Plots 7 7.0 7.0 71.0
Flats 29 29.0 29.0 100.0
Total 100 100.0 100.0

Finding: Residential plots are the most preferred product amongst the customers.

Factors which lead to the increase in the prices of real estate products.

Cumulative
Options Frequency Percent Valid Percent Percentage

15
 Connectivity to
27 27.0 27.0 27.0
metropolitan cities
Good road facilities 46 46.0 46.0 73.0
Presence of real estate
17 17.0 17.0 90.0
companies in an area
Recreation facilities 10 10.0 10.0 100.0
Total 100 100.0 100.0

50
45
40
35
30
25
46
20
15 27
10 17
5 10
0
Connectivity to Good road Presence of real Recreation
metropolitan facilities estate companies facilities close
cities in an area construction site

Comparison between the factors which lead to the increase in the prices of real estate
products.

Finding: Good road facilities to the construction site lead to the maximum increase in the

prices of the real estate products.

Various methods used by customers for searching real estate information.

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 Cumulative
Options Frequency Percent Valid Percent Percentage

Property dealers 12 12.0 12.0 12.0

Newspapers 36 36.0 36.0 48.0
Internet 26 26.0 26.0 74.0
Real estate companies 20 20.0 20.0 94.0
Magazines 6 6.0 6.0 100.0
Total 100 100.0 100.0

Finding: Majority of the customers, rely on newspapers for obtaining the real estate information.

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Factors influencing the customers to purchase real estate products.

Cumulative
Options Frequency Percent Valid Percent Percentage

Assured return 24 24.0 24.0 24.0

Lease agreement 12 12.0 12.0 36.0
Rebate on down
2 2.0 2.0 38.0
payment plans
Loan agreement 58 58.0 58.0 96.0
Special discounts 4 4.0 4.0 100.0
Total 100 100.0 100.0

Finding: Loan agreement(s) between the banks and the real estate companies is the most
important factor that influences the customers to purchase real estate products.

Application of likert scale on the statement brand is the primary concern when a

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 customer makes a purchase decision for a real estate product.

Cumulative
Options Frequency Percent Valid Percent Percentage

Strongly disagree 26 26.0 26.0 26.0

Slightly disagree 48 48.0 48.0 74.0
Neither agree nor
2 2.0 2.0 76.0
disagree
Slightly agree 16 16.0 16.0 92.0
Strongly agree 8 8.0 8.0 100.0
Total 100 100.0 100.0

Finding: 48% of the respondents slightly disagree with the statement that brand is the

primary concern when a customer makes a purchase decision for a real estate

product.

Reasons behind the rejection of a real estate product.

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 Cumulative
Options Frequency Percent Valid Percent Percentage

Customer doesn’t expect

future value of money to
rise. 49 49.0 49.0 49.0

Inconvenient location 24 24.0 24.0 73.0

More price 6 6.0 6.0 79.0
Lack of quality 21 21.0 21.0 100.0
Total 100 100.0 100.0

Figure12: Comparison between the reasons behind the rejection of real estate
products.

Finding: Major reason behind the rejection of a real estate product is when the customer

doesn’t expect the future value of money to rise.

SWOT ANALYSIS

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STRATEGIES ADOPTED BY THE REAL ESTATE COMPANIES

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1. GOOD REAL ESTATE COMPANIES AVOID BEING THE FIRST MOVERS TO A
PARTICULAR AREA : In marketing, a term first mover advantage is frequently used it means
that if you enter a particular area or if you touch a particular segment earlier than others then you
will enjoy an advantage over your competitors, but as far as real estate is concerned there is
nothing like first mover advantage, it is not mandatory that a first mover will always be
benefitted, it is usually the second or the third mover who enjoys the advantage. Some of the real
estate companies wait and avoid being the first movers and once the other real estate companies
have entered that area then they move to that area and enjoy the advantage (This strategy is
frequently used by DLF in many areas of Punjab, Haryana and Himachal Pradesh).

For Example: If there are 2 real estate companies A and B. If a particular area is vacant and
if both the companies purchase land there at equal prices. If A company starts its township
construction there immediately after purchasing the land, early on the land prices will not be too
high and the plots which A company is selling will not be at a higher price ( say Rs. 15000/ sq
yard) because the area is vacant and there is not much development in that area. If A company
offers plots at higher prices then customers may not purchase those plots because if there is no
development in that area then customers may not invest large amount of money there. Now after
2-3 years when some development has taken place there, company A’s township will be 70-80%
complete by that time. Now that area won’t be considered as an underdeveloped area because
some sort of construction work has taken place there and the value of that land has increased
after the construction which will increase the property prices as well.

Now company B will enter that area and will start its township construction there. Now the
plots which will be offered by company B will be sold at a price (say Rs.22000/sq yard) which
will be higher than the price set by Company A, 2-3 years ago. The price which was set up by A
will be considered as a base price because it was set up at that time when there was no
development in that area. Now every company which will enter that area after A will set that
price higher than A because A’s price was set at that time when the area was absolutely vacant so
it will be considered as a base price. In this way as more and more real estate companies and the
builders will enter that area the land prices will automatically start rising because the amount of
development in that area will keep on increasing with the entry of every real estate company.

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 Difference in the prices of the property with time.

COMPANY PRICE OF PLOT ( PER SQ YARD) PRICE OF 200 SQ YARD PLOT

A (2008) Rs.15,000 Rs.30,00,000

B (2011) Rs.22,000 Rs.44,00,000

In this way 1st movers are rarely benefitted in real estate as it can be seen from the hypothetical
example that Company A which was first mover earned Rs.30, 00,000 from a plot of 200 sq
yards and Company B which entered that area after A earned Rs.44, 00,000 from the plot of
same dimension.

LIVE EXAMPLES:

1. DLF did this in Baddi (H.P), it allowed Omaxe and few other local builders to enter that area
and then it entered Baddi after few years and came up with its project Amravati Enclave and as a
result it avoided being a first mover.

2. DLF is going to follow the same strategy in Mullanpur (Punjab) where Omaxe is already
operating with its project Omaxe Chandigarh Extn. , DLF has already purchased land there but is
yet to start its project.

3. DLF did similar thing in Pinjore (Harayna).

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4. Unitech used this strategy in Gurgaon where it allowed DLF to enter Gurgaon and when
property prices increased then Unitech followed the same strategy which was employed by DLF
at various other places.

2. ANALYSIS OF DEMAND AND SUPPLY MAP OF AREA OF INTREST: Whenever a

real estate company enters a particular area then it’s very important from that company’s point of
view that it has to analyze the demand supply map of that area. Demand supply map in an area
gives an idea about the customer inclination towards a particular product in that area.

3. ANALYSIS OF PER CAPITA INCOME OF THAT AREA: This is another important

factor in success or failure of real estate products. Per capita income of that area needs to be
calculated in which the real estate company is about to operate

4. ASSURED RETURN: Real estate companies persuade or convince the customers to invest in
real estate products by making those investments more lucrative. Whenever the customer invests
in a real estate product then he/she always looks at the possession period that is there is some
amount of time in between when a customer pays the booking amount and when the customer
will be getting the possession of that real estate product. If the possession period is on the higher
side that is between 2 or two and a half years then customers start thinking that there money will
be blocked in that real estate product for that time period in which they won’t be getting the
possession. So real estate companies give assured return to the investors at an interest rate which
is more than the rate offered by the banks that is more than 7.5% per annum.

5. UNDERWRITING: It is a method which is being adopted by the various real estate

companies and the builders. They construct a shopping mall after purchasing a chunk of land and
then instead of selling the showrooms and the office spaces inside the malls themselves they
hand over the shopping malls to property dealers. Like when Ansal constructed the mall in 1999-
2000 then instead of selling it itself it handed over the mall to the property dealers that is the mall
was sold to the dealers and once it is sold to them then they are solely responsible for setting the
price and at times they increase the profit margins and sell the outlets inside the mall at higher
prices.

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 LATEST TRENDS IN REAL ESTATE

1. AFFORDABLE HOUSING: It is one of the segments of residential real estate which always
had a huge potential due to shortage of about 25 million dwelling units mostly in this segment.
But early on it was neglected by developers due to lower profit margins. Developers looked to
invest on luxury housing, commercial offices and mall developments. But following down turn
debt ridden developers have woken up to the need of undertaking affordable housing. For the
past one year there has been paradigm shift with many developers taking to this high volume
low margin business of affordable housing. It is more out of compulsion than out of choice.

2. LOW RISE DEVELOPMENTS: In the wake of downturn developers have been trying
newer formats to lure home buyers and pushing up sales. One such development is gaining
popularity in low rise homes.

The concept of low rise homes or low density relates to homes set out spaciously amid
sprawling green spaces. The construction in low rise apartment complexes in generally limited to
ground plus three or 5 floors.

Low rise housing is more contemporary and user friendly as more space for green areas and
community spaces can be allocated in such developments. It makes more business sense to go in
for such developments in far flung sub urban areas with lower FSI.

Besides this the builders are also constructing independent floors usually G+2 spread over
180-300 sq yards of plots. The trend of independent floors has really caught up in Delhi NCR
with Haryana Govt. recently opening the registration for independent floors there are many
takers for these floors in Gurgaon and Faridabad offered by leading developers like BPTP,
Vatika etc.

The trend of low rise homes or open floors is catching up several parts of country with
demand for such developments rising in Delhi NCR, Pune, Kolkata, Ahmadabad and Mumbai
suburbs.

Low rise residential developments are win -win for both developers and home buyers. It is
a profitable format for developers as construction cost is low, though profit margin is less. Since

25
most of these developments are on outskirts of cities where low rise residential developments are
usually 15-20 % cheaper than the ones in high rise buildings.

The independent floors have another significant advantage. They are delivered much faster
compared to standard 3 year delivery time for high rise apartments but independent floors take
not more than 2 years for completion. These developments are not much cost intensive and take
lesser time to finish developers don’t face any funding challenges. As more and more people
especially senior citizens today prefer not to live in congested and back to back residential
developments, independent floors are much in demand.

3. DEVELOPERS CONSORTIUMS: The concept of developers joining hands together to do

bigger projects got prominence during the real estate boom when many mid level regional
developers set out for pan India expansions. Now in the post boom period when many developers
are struggling to beat slowdown this concept is equally relevant.

4. SUSTAINABLE REALTY: This concept of green buildings or sustainable realty has made
significant progress in recent years. With the modest of beginning of 20,000 sq feet green foot
print in 2003 today about 375 green building measuring over 275 million sq feet are being
constructed across the country under Indian Green Building, Council Green Homes Certification
Programme.

So much so that green realty is rising despite the slump. It has doubled to 6.8 million sq feet
in 2009 from 2007 level of 3.8 million sq feet according to a DTZ report.

The supply of green space is largely contributed by IT sector. Though green buildings are 5-
8% costlier corporate occupiers have realized the potential of savings in running costs and
employee health benefits.

Now this green building concept is going beyond the realm of commercial to residential
developments with several developers like Provident Housing, 3C, Supertech, Century Group are
engaged in development of green spaces. In fact now there is emergence of developers like 3C
which are doing dedicated development of green buildings.

It is not just private developers even Govt. agencies are involved in the development of green
space. Delhi Mumbai Industrial Corridor (DMIC) Corporation has joined hands with Japan to

26
develop eco city around DMIC and recently under the new rating system- Griha, the Ministry of
New and Renewable energy has announced financial incentives for green developments.

IGBC has set a green building goal. It envisages one billion sq feet of green building foot
print to be registered for certification by 2012. There will be over 1000 green buildings by 2010.

Sustainable developments are the most lucrative business model of the future especially as
foreign investment will flow to green developments. But we need to value – engineer our
materials, labor and processes to give boost to green spaces particularly in the residential
segment. Also there is a need to provide incentives to developers to encourage them to go for
green buildings.

All this will provide impetus to green urbanism there by changing country’s skyline in
upcoming years.

5. THEME CITIES: They are the latest rage in real estate world. They are large format
integrated developments where lifestyle revolves around a particular theme. As many as a dozen
theme based cities have been launched recently by different developers in Delhi NCR,
Bengaluru, Mumbai and Kolkata. The most predominant theme in these cities is sports. With
upcoming commonwealth games in Delhi creating buzz developers are vying with each other to
explore opportunities for sports centric cities. What started as a concept of Golf centric cities has
now developed in to full fledged sports cities that include sports venues, homes and commercial
properties.

The model of homes surrounded by sports facilities like racing track, golf courses, cricket
stadiums, lawn tennis, badminton courts etc though borrowed from west is now being replicated
in a big way in India.

The biggest sports city is being developed by Jaypee Group over 2500 acres on Yamuna
Expressway in Greater Noida. There will be formula one racing track and many more facilities,

The Jaypee sports city besides having all the sports facilities will have residential and
commercial developments over 700 acres and 300 acres respectively. There will also be hotels,
restaurants and recreation facilities.

27
 Besides Jaypee another leading real estate player Ansal API is developing sports city in
NCR. The city will boast of sporting facilities including golf course, race course and polo
ground. Supertech has plans for sport city in Meerut.

Mumbai developer Nirmal Lifestyle has come up with residential development US Open
Apartments with Spa, fitness centre, sports club, lawn tennis and badminton courts.

Besides sports centric cities developers have planned cities around Italian and Medeival
themes Tdi’s Tuscan city in Sonipat promises Italian architecture with water bodies and central
plazas. Vakil group is developing a city based on theme of famous Shalimar Garden.

Most of these projects command premium pricing due to product differentiation and unique
lifestyle. While most of these theme based cities become operational in next 2-5 years the
success of these cities will decide how this trend takes shape in coming times.

28
 RECOMMENDATIONS

 As far as real estate is concerned the strategies which the companies have adopted for

should be changed as the area of operation changes.

 Dealers can be given incentives when they achieve the targets before the prescribed time

limit.

 Auctions in case of PLC plots.

 Market research in that area needs to be performed and the customer preferences in that

area need to be found out.

 Looking at the customer requirements the township maps should be designed. Because it

is not mandatory that the strategy which is successful in one area will be successful in

other as well.

 The demand supply map in that area needs to be analyzed very carefully before starting

the township construction there.

LEARNINGS

 Post recession period in real estate is all about high volume and low margin.

 Real estate is all about creating dealer networks and maintaining dealer relations.

29
 CONCLUSION

As proved by the testing of hypothesis, there is a significant association between the brands and
the attributes while taking the purchase decision for a real estate product. Customers give priority
to future value of money that is the future value of money is the most important attribute for the
customers while making the decision for a real estate product. The real estate companies have
shifted to the policy of high volume and low margin after recession. Also the branding strategies
also play a very important role in today’s competitive market. In addition to this some additional
findings of this report are:

1. Residential products in real estate are more in demand as compared to commercial products.

2. While purchasing or advising real estate products customers give priority to future value of

money than any other attribute.

3. Townships are more in demand as compared to group housings and commercial projects.

4. Amongst the real estate products, residential plots are more in demand, flats are second and

commercial plots are third.

5. Branding strategies adopted by the real estate companies persuade the customers to purchase

the products.

6. If the construction site is easily approachable, that leads to the maximum increase in the prices

of real estate products that is good road facilities to the construction site increase the value of

property.

7. Majority of the customers search for real estate information using newspapers, so real estate

companies should lay more stress on advertisements in newspapers.

30
8. The ease with which customers can get loans from the banks determines the ease with which

real estate products can be sold by a particular real estate firm that is loan agreements with the

banks by the real estate companies’ help in smooth selling of real estate products.

9. Major reason behind the rejection of real estate product is when customer doesn’t expect the

future value of money to rise.

31
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 ANNEXURE

QUESTIONNAIRE

1. What type of real estate products you prefer to buy?

(a) Commercial.
(b) Residential.

2. While purchasing or advising real estate products what do you see?

(a) Current Price .
(b) Quality.
(c) Location.
(d) Future value of money.

3. Which brand do you prefer?

(a) DLF (b) Omaxe (c) Emaar MGF (d) Unitech
(e) Any other.

4. Which real estate projects do you prefer?

(a) Group Housings.
(b) Townships.
(c) Commercial Projects.

5. While investing in a real estate product which attribute which is most important for
you?
(a) I will purchase a real estate product if its price is on the lower side.

(b) I will invest in a real estate project if the location of that project is easily
approachable.

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 (c) Finishing and quality of real estate products is an important attribute for me.

(d) Whenever I invest in real estate products then I always look at the future
value of money which I am investing.

6. Branding strategies adopted by the real estate companies persuade the

customers to purchase the products.

(a) Strongly agree (b) Slightly agree (c) Neither disagree nor agree

(d) Slightly disagree (e) Strongly disagree.

7. You will give priority to which of the following real estate products?
(a) Residential Plots.
(b) Commercial Plots (SCO and Booth).
(c) Independent Floors.
(d) Office spaces.
(e) Villas.
(f) Flats.

8. Which factor leads to the maximum increase in the prices of real

estate products?

(a) Their connectivity to a metropolitan or an advance city.

(b) Good road facilities to the construction site.
(c) Presence of many real estate companies in a particular area increases the prices of real
estate products in that area.
(d) Presence of shopping mall or multiplex or some other recreation facilities close to
construction site.

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9. How do you search for the information related to real estate?

(a) By visiting property dealers or property advisors.

(b) By reading newspapers.

(c) By internet.

(d) By directly visiting the real estate companies.

(a) By reading realty magazines.

10. Which of the following facility mostly influences the customers to

purchase a particular real estate product?

(a) Assured return provided by real estate companies.

(b) Lease agreement (applicable in case of commercials only).

(c) Rebate on down payment plans.

(d) Agreements with banks which determine the ease with which one can get loan.

(e) Special discounts provided to Government employees by some real estate

companies.

11. Brand is the primary concern when a customer makes a purchase decision

for a real estate product.

(a) Strongly agree (b) Slightly agree (c) Neither disagree nor agree

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 (e) Slightly disagree (e) Strongly disagree.
12. Why does a customer reject a real estate product?

(a) When the customer doesn’t expect the value of money (invested in that
product) to rise in upcoming years.

(b) When the location is inconvenient.

(c) When the price of product is more than what is anticipated by the customer.

(d) When the quality of the product is not up to the mark.

13. Kindly give reason(s) to support that response which you have given in
question 1?
_____________________________________________________________________
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_____________________________________________________________________
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14. Kindly give reason(s) to support that response which you have given in
question 4?

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