A PROJECT REPORT ON CONSUMER BEHAVIOUR IN THE REAL ESTATE INDUSTRY (choice of location)

with special reference to:

SUBMITTED BY:

SUBMITTED TO:

ACKNOWLEDGEMENT I take immense pleasure in completing this project. The project on ANSAL has been full of learning and sense of contribution toward the organization. I would like to thank ANSAL for giving me an opportunity of learning and contributing through this project. I also take this opportunity to thank Mr. Ankur Budhiraja (marketing faculty) under whose guidance this project is successfully completed. A successful project can never be prepared by the single effort of the person to whom project is assigned, but it also demand the help and guardianship of some conversant person who helped the undersigned actively or passively in the completion of successful project.

TABLE OF CONTENTS EXECUTIVE SUMMARY Chapter 1-INTRODUCTION Chapter 2-COMPANY PROFILE Chapter 3-OBJECTIVE OF THE STUDY Chapter 4-RESEARCH METHODOLOGY Chapter 5-DISCUSSIONS Chapter 6-DATA ANALYSIS Chapter 7-MAJOR FINDINGS OF THE STUDY Chapter 8-CONCLUSION

Chapter 9 - ANNEXURE o BIBLOGRAPHY O QUESTIONNAIRE

EXECUTIVE SUMMARY INTRODUCTION Earlier people used to search for a new home within Delhi but now things have changed tremendously. People looking for a new home have started focusing on the upcoming NCR area comprising Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad. There are numerous factors responsible for this change, which have been identified and analyzed during the research and the same has been indicated later in the report. OBJECTIVES To find out the reasons for transition of people from Delhi to National Capital Region (NCR). To find out the perception of people about the cities included in NCR namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad. To know the degree of importance of various factors which people consider while purchasing a house. STEPS Understanding the objectives and requirements of the project clearly. Prepared a questionnaire keeping in mind the objectives to be achieved. Accordingly questionnaires were made: Housing (See Archive 1) Searched for busy commercial places, occupied housing complexes and under-construction housing complexes located in Gurgaon,

Noida, Greater Noida, Faridabad and Ghaziabad. complexes.

Obtained

Permission to conduct surveys in shopping malls and housing Conducted survey with the help of a questionnaire in shopping malls and occupied housing complexes and carried out in depth interviews of the sales manager of under construction housing complexes in different cities of NCR Analyzed the data collected, through tables and charts in MS Excel Drafted the report. LIMITATIONS Study was restricted to Gurgaon, Noida, Greater Noida, Vaishali and Indirapuram. Study was restricted to occupied housing complexes, shopping malls and under-construction housing complexes.

INTRODUCTION Delhi is now more or less saturated and the high demand for residential properties has increased rates beyond the reach of middle class. As a result, the suburban towns within the NCR; Gurgaon, Noida, Faridabad and Ghaziabad have become destinations for new residential projects that offer affordable quality housing to the middle class as well as luxury housing for high end users. As these suburbs are now increasingly generating employment, they will decide the future growth pattern of the NCR. The business and trader class still largely dominate old residential areas in west and northwest Delhi. Similarly the large multi-storey societies in East Delhi in mayur vihar and Patparganj have found preference with the service class. The blue-collar segment remains limited to apartments and society developments while big and small traders occupy the whole of west Delhi, including Rohini. The elite class, in terms of social status, i.e. politicians, bureaucrats and celebrities, restrict themselves to central and south Delhi. Suburban areas like Noida and Gurgaon have developed as alternative housing solutions and are inhabited mostly by professional and service class people, as well as an increasing upper middle class segment. Gurgaon offers a good quality of living with many high-end residential projects by private developers. These new developments offer uninterrupted power supply, community and health care centers along with facilities like a swimming pool, clubhouse and other services. As per industry estimates, projects with approximately 5000 dwelling units have been announced in Gurgaon. Since it will be maturing as an independent city, occupancies will improve but in the present context, it is an oversupply situation.

Noida has experienced rising prices in its existing commercial, retail and residential real estate. The new developing residential sectors are along the Greater Noida expressway. Occupancies in Noida are good and prices are looking northward. It is a good destination for the middle class, as far as accessibility, social and physical infrastructure and growth perspective are concerned.

COMPANY PROFILE

Ansal API was established as a result of a dream, shared by its visionary founders. A dream that was to, radically improve the lifestyle standards of the citizens by building world class real estate solutions. After four decades of spectacular growth Ansal API is at a stage where the company has acquired immense experience, consolidated and established assets- physical and intellectual and at the same time retained youthful energy & zeal. With foundations entrenched in the solid bedrock of technical expertise and financial stability its pinnacles are rising new heights with foresight and innovations for future requirements of resurgent India. Ansal API as an organization can be best envisaged as a creator of man made social infrastructure, where modern life blooms, in collaboration with the environment. The ascent of Ansal API to the top of the Real Estate acme is a direct product of Mr.Sushil Ansal's foresight and his dynamic leadership. Ansal API, the corporate manned by professionals at all levels with its strong base and lineage is now in a state of renaissance; all the companies of Sushil Ansal Group will now be under one banner i.e. the Ansal API. The new "Ansal API" identity, is the first communicator of this phase of resurgence, excellence and modernity. The rectangular shape signifies solidity, cohesiveness and strength, the red colour stands for passion, heat, energy, dynamism & purity and the black colour signifies the proposed

amalgamation of Ansal Township and Projects Limited into Ansal Properties and Infrastructure Limited. The slogan, ' Building lifestyles since 1967', encapsulates their heritage and vision in creating a better life for Indians in various spheres like - homes, offices, places of entertainment, hotels, shopping malls and educational institutions. With a vision and foresight gained by past experience Ansal API has a roadmap for future development of reality business. It proposes to drive its growth through focused concentration on developing integrated townships in tier II cities, establishing presence in IT parks and SEZ. The company also plans to establish malls in these townships with mixed hotel/ serviced apartment usage. In keeping with the Government's housing policy, the company endeavors to provide better dwelling units for the urban poor with special emphasis on environmental improvement and social forestry. Ansal API is committed to carry out technical and management expertise to smaller towns so that on one hand the congestion in the metropolis could be avoided and on the other hand the benefit of planned development with its attendant improvement in the life style could be extended to the bulk of the Indian population living in smaller towns. Ansal API is focusing on ushering in new lifestyle ventures in cities like- Greater Noida, Gaziabadh. Meerut, Agra, Lucknow, Batindha, Mohali, Amritsar, Ludhiana, Jalandhar, Jaipur, Jodhpur, Ajmer, Sonepat, Panipat, Karmal, Kurukshetra, Faridabad, Gurgaon to name a few. It is said that actions speak louder than words and nothing highlights this adage better than Ansal API's effort to give something back to the society of which they are a part. Ansal API believes that today's children are

tomorrow's leaders and in order to hone their young minds, Ansal API has forayed into the education sector with schools like the Chiranjiv Bharati School at Palam Vihar and Sushant Lok, premier institutions like the Ansal Institute of Technology and the Sushant Schools of Art and Architecture. Ansal API in its endeavour to fulfill its duties to payback in form of green cover for the society have created manmade verdant ambiance at projects like the Aravali Retreat, Pushpanjali Farms, Satbari Farms. Ansal API plans to create an ambiance of peace and tranquility for the people who have served their duties and are now in their dusk of life to relax and enjoy their retirement by building old age homes. Touching every facet of modern lifestyle with its signature of excellence, Ansal API has changed the skyline of India with its versatile portfolio of residential complexes, educational institutions, hotel and hospitality avenues, shopping malls, farmlands and IT parks amongst others. With its deep-rooted foundation of ethics and values, Ansal API continues to conquer new horizons, thus pioneering and identifying new vistas of growth for the real estate sector. TODAY OUR action domain encompasses the whole field of manmade habitat creation, integrating within its ambit both physical and social infrastructures like housing , townships ,commercial complexes ,hotels, entertainment , educational institutes and many more. Ansals is an organization which can be envisaged better as a creator of manmade geographies where modern life blossoms in active collaboration with nature. For nearly four decades now the name Ansals has been synonymous with the entire gamut of construction and real estate development activity and abroad. Way back in 1967 Ansal introduced the

concept of high rise commercial complexes in Delhi and since then the group has marched on unbated path in changing skyline of not only Delhi but also several other cities in India as also places abroad. Ansal group comprises of 25 companies. Ansal properties and industries ltd. Being the flagship country. It has successfully completed large number of projects and developed estates nationally and internationally. It has also completed its overseas operations in Iraq ,Thailand , Russia , Bangladesh and Vietnam successfully. Ansals have been following a highly progressive approach which is aimed at a result orientation and is based on the latest in technology and management. The company employs a human resource of over 500 persons with over 150 people manning the supervisory and managerial positions. The professionals form an effective pool of talent and expertise in various specialized fields such as marketing, finance , engineering, architecture, construction etc. backed by up-to-date information technology and management systems aimed at excellence in the end results. REAL ESTATE PROMOTIONS AND DEVELOPMENT By far the most dominant activity of Ansals has been Real Estate Promotion & Development. The company has several landmark high rise commercial buildings like Statesman House, Ambadeep, Antriksh Bhawan , Tolstoy House , Indra Prakash, Nuarang Bhawan and Ansal Bhawan among others. Besides, Ansals have also completed several residential like Gauri Sadan , Upasana at Hailey Road & Dhawan Deep at Jantar Mantar road all in the heart of New Delhi Cannaught Place. In addition to its most prestigious Ansal Plaza project in South Delhi & a 5 Star Super Deluxe Marriott Hotel

project in Saket. The company has developed various farm estates and techno parks & won many laurels abroad. In Thailand alone, there are several prestigious complexes. The company has also left imprints of their presence in other parts of the world viz. Iraq ,CIS Countries, Vietnam ,Myanmar and Bangladesh. The company has presented the most appropriate answers to the problem of the clustered residential of urbanities with elite townships, Sushant Lok and Palam Vihar , south of Delhi and several other places all over the country. REAL ESTATE BUSINESS Ansals have entered into strategic business alliances with various

international companies like National Panasonic for its Brand Shop at Ansal Plaza. It has recently opened its 4000 square feet ultramodern footwear showroom shoes n shapes of branded leather goods having variety of branded leather accessories that include the worlds biggest bag on display. The visitors will have the privilege to these branded leather bags from DaMilano and HiDesign international brands of repute. Renowned brands of footwear like Lotus Bawa, Lee Cooper Xess , Hangten and Allen Cooper have been roped in for retailing both formal and semi formal shoes. While Allen Cooper and Lee Cooper will showcase shoes exclusively for men, Xess offers footwear for the lady customers. On the other hand, Lotus Bawa not only has something for both men and women but will also provide comfortable shoes for the tender feet for children .

ENVIRONMENT UPGRADATION All our projects are aimed at environmental up gradation. By afforestation of a vest and bare hill side of Aravalli ,Ansals have developed it into a little paradise on earth. The transformation has not restricted itself only to an abode of flowering plants, healthy trees, green meadows , but also wildlife and birds sanctuaries, manmade lake etc. Pushpanjali farms ,Palam farms, the Golden orchards and the Vilas Manajari farms indeed have lots of green that acts as lungs for the surrounding areas to breathe. DESIGN , ENGINEERING AND CONSULTANCY Ansals try to achieve the self sufficiency in its expertise on Design ,

Engineering and Consultancy. They have in-house some of the best architects, engineers and planners in its consultancy division. With their longstanding reputation for creative building and design, coupled with the professional expertise in arts, architecture and town planning, they have been usefully engaged in providing consultancy and management services to various projects in India and Overseas. They do not hesitate though to seek external expertise in specialized areas in the self development activities such as Hotels and Plazas. TURNKEY HIGH-TECH PROJECTS The Ansals have successfully completed several high-tech projects of national importance in the diversified field of irrigation, thermal and nuclear projects, express ways, viaducts, power houses, tunnels ,harbours and other civil engineering projects demanding high degree of skill and expertise. We always look forward to new challenges in high-tech areas in construction.

HOSPITALITY DIVISION CLUBS Ansals have ventured into new areas of Hospitality business, Forays into Hotels, Serviced Apartments ,Clubs hotels & Clubs are a part of this exercise. We have drawn up an impressive plan to have chancellor clubs, resorts and restaurants at all major housing colonies being developed. The club with all modern amenities and facilities ranging from swimming pools to remain tennis courts to mini golf under the name of chancellor club is fully in operation at Palam Vihar. HOTELS Ansals have built a thoughtfully planned 5 star hotels namely Marriott Welcome Hotel in Saket, which is strategically, located around 8 kms. From New Delhis International airport. It has 222 guest rooms and suite equipped with modern facilities to ensure that guests have a comfortable & enjoyable stay. The international standard & spirit of planning & execution for this hotel by adding values in providing world class service to its clients have further strengthened the trust of its clients by which Ansals are set to carry out several similar projects in some spirit of excellence.

WORKLOAD AND TURNOVER Ansals have won the goodwill of the investors both in India and overseas with their commitment to excellence, expertise and professionalism. Today yearly turnover of Ansal properties & industries Ltd., and other allied companies is Rs. 175 crores and its multiple projects in hand exceed Rs. 1000 crores. The nature of projects span the entire gamut of construction activities and include even high-tech areas. Efforts are on to expand the activities further, which should contribute to further growth of the company. SOCIAL COMMITMENT Ansals recognize the right to housing for everyone and offer full support to Governments schemes for economically weaker sections by building houses & providing developed lands to less privileged section of the society at high-subsidized rates. Our institute of learning like the Chiranjiv Bharati school at Palam Vihar and Sushant Lok. The Ansal Institute of Technology, Sushant School of Arts & Architecture, the newly started courses in Management & Information Technology affiliated to Guru Gobind Singh Indra Prastha university are the reputed seats of learning created by us for nurturing the intellectual health of the societys youth.

OUTLOOK Inspire of periodic ups and downs through which the Estate Developments and construction has been passing over the last few years, the future of the industries is bright. It is our commitment to carry out technical and management expertise to smaller towns so that on one hand the congestion in the urban metropolis could be avoided and on the other hand the benefit of planned development with its attendant improvement in the life style could be extended to the bulk of Indian population living in smaller towns. Towards this end, a beginning has already been made by taking up real estate & other projects especially of establishing malls at several towns away from the capital such as at Faridabad, Noida, Agra, Kanpur, Allahabad, Varanasi, Ghaziabad, Meerut etc. It is also proposed to build exclusive NRI colonies and malls and has started two new office complexes by the name of Times Square and Orchard Square in Sushant Lok 1 which will be ultra modern office complexes and will cater to multi national companies covering a total built up area of around 4,00,000 sq. ft. In keeping with the governments housing policy, the company is endeavoring to provide better dwelling units for the urban poor with special emphasis on environment improvement and social forestry. High-tech construction of turnkey projects will continue to be a thrust area. In the final essence , the company will continue to build globally for peoples welfare.

AWARDS WON BY ANSALS Udyog Patra Award Siromani Award Udyog Alankar Award for self made industrialist - for excellent work in urban society - for outstanding work in large scale buildings Nirman Udyog Award - for excellent work in properties investments International Meridian Award - for outstanding contribution to urban & housing development in Delhi. MISSION It is our mission not only to house the homeless and to achieve difficult engineering feats by producing memorable landmarks for the posterity but also to contribute to the lasting values to our modern life style without sacrificing the basic values of life. We believe in sustainable development to provide healthy , happy and wholesome quality of life for our people and the people of the world. The dream that was shared between our visionary co-founder Late Lala Chiranjiv Lal Ansal and myself has seen us through four glorious decades of uplifting the quality of lives. This in turn, has put us in an enviable position of being the catalysts of change in the region. What started as a family business in 1967, has now become a professionally managed organization with interests in diverse aspects of real estate. The key role that we have been playing is that of changing the behavior patterns of people by

introducing them to a certain lifestyle. Now we are geared to further this transition by donning an all new identity built on the same solid foundation of excellence, teamwork and commitment. I would like to sum up thoughts by saying, "We had dreamt of enriching the lives of our brethren by creating world class real estate solutions and redefining lifestyle standards". Quite aptly, we are headed towards this direction. Sushil Ansal Chairman Ansal API PRESENT SCENARIO IN RETAIL SECTOR IN INDIA

The organized retail sector is expected to grow at 6% by 2010 and touch a retail business of $ 17 billion as against its current growth level of 4% which at present is estimated to be $ 6 billion, according to the Study undertaken by The Associated Chambers of Commerce

and Industry of India (ASSOCHAM). The Study has revealed that the retail sector will grow at GDP 7% by 2010 and enlarge its market share to $ 280 billion from its present estimated level of $ 200 billion. Cities and metropolitans in which retailing will show booming prospects include Mumbai, Delhi, Chennai, Kolkata, Bangalore and Kanpur and the popular mode adopted for building shopping malls in these cities will be based on build, operate, lease and sell basis. This system, as per the findings of ASSOCHAM will lead to establishments of closer linkages and relationship between real estate developers, state governments, financial institutions and retail industry. As per ASSOCHAMs estimates, investment opportunities that the retail sector will create in next 4-5 years will result into continued urbanization and increase the per capita income of Indian populace which will finally lead to greater consumerism. The growth of retail sector will lead to greater shift towards service economy in which need for real estate will be paramount. Franchising in retailing will emerge as a popular mode of retailing as their will be proliferation of availability of brands with both foreign and Indian companies acquiring strong brand equity for their products in near future. The retail boom currently being witnessed in India is likely to have a significant impact on the commercial real estate sector as the large metropolitans will have sizable retail construction projects underway. However, there will be few stumbling blocks that may restrict the growth of retail sector. These include very high stamp duties on transfer of property which vary from state to state level. A case in

example is Gujarat, Uttar Pradesh and few other states where the stamp duty is charged at 12.5%, while there are certain states like Delhi in which the stamp duty levied is within the range of 8%. Urban Land Ceiling Act, Rent Control Act and Land Acquisition Act until amended will continue to distort property markets and cities, leading to exceptionally high property prices. Presence of strong protenancy laws will also make it difficult for retailers to grow as this problem is compounded by lack of clarity over titles to ownership. The government should encourage People of Indian Origin (PIO) to invest in real estate and township building should encourage People of Indian Origin (PIO) to invest in real estate and township building and foreign investment in real estate business and retailing should also be opened up. On the domestic taxation front, sales tax rates differ across the various Indian states, making supply chain management a challenging task for organized retailers. Inter-state sales attracts Central Sales Tax while for some categories of products, certain states levy import duties namely entry tax on entry of goods into their territory. Simultaneously, states levy export duties where goods are moved for sale outside state border.

Organized retailing is bound to grow tremendously provided the right marketing strategies are adopted. Retail businesses have broken rank and seem poised to surge ahead with renewed vigor, optimism, confidence and capability. DEMOGRAPHICS & CONSUMER BEHAVIOUR POPULATION India is estimated to have a population of 1.12 billion as of 2007. Population growth is expected to stabilize at approximately one and a half percent in the next few years. In recent years, there has been a trend in the movement of population from rural areas to urban areas, largely as a result of increased employment opportunities in the cities as well as a preference of the younger generation to move away from agriculture. One of the important demographic trends in recent times is the change in the age profile of the population. The percentage of the population in the 15 to 59 year age group, which is largely the countrys workforce, is expected to increase in coming years.

The increase in population, which constitutes the workforce, is likely to result in a higher percentage of the population being economically active. Urban Population: Age structure: 014 years: 30.6%, Male: 188,208,196, Female: 171,356,024 1564 years: 61.9%, Male: 27,258,259, Female: 30,031,289 (2007 EST.) The average age of Indians is 24.8 years. INCOME/BUYING POWER With the Indian economy witnessing moderate growth, the population as a whole has become wealthier. The per capita income has been witnessing steady growth in the last few decades and as can be seen from the chart, it has almost doubled in the last two decades. This trend is likely to continue

in the near future as the economy continues to grow. In fact it is estimated that 40 million homes in India are at par with American per capita incomes. GDP per capita expected to approx. double by 2010

CONSUMER SPENDING PATTERN The total private consumption in India was estimated to be approximately INR 13,500 billion. Of this, expenditure on food was the single largest, accounting for nearly 41% of total expenditure. This was followed by expenditure on durables, which was 32% of total expenditure. The chart below shows the various categories as a percentage of total consumption expenditure and how it is changing .Expenditure on Consumer Durables, vacations and Books & Music are rising while that on Personal care items, Grocery ( albeit still the biggest expense) and savings & investment are falling.This is a clear indication of the economy developing , and with it the retail markets. THE RIGHT RETAIL MIX The retail ethos has moved from the customer is God to CRM (Customer Relationship Management). Against this backdrop, if we would like to look

into the Indian retailing evolution in the last decade and try to see if I can trace its path and examine what it will translate into in the future, we need to look at the four elements of successful retailing. In fact, these ingredients have been the same for centuries and are: Location and the space in the shop. Merchandise and merchandise management. People and service. Customer and customer relationship one roof and create retail locations. LOCATION Location is always important, but if the other three elements of the retail mix are taken care of, location becomes incidental for large department stores. When the first Shoppers Stop started at Andheri in Mumbai, everybody thought any shop that opened on the other side of the flyover, was sure to fail. Today, ten years down the line all the shops that have opened on S.V. Road in Andheri are on the so-called wrong side of the flyover. When the second Shoppers Stop outlet, in Bangalore was opened next to the football stadium on Magrath Road, the road did not have street lights another doom was predicted. The Bangalore Shoppers Stop has turned out to be the most successful retail store in the country. With Lifestyle opening next to it and two more malls\shopping complexes in the same area, the analysts are talking about catchments and location. World over, malls are being constructed at out-of-town locations and the area is then transformed into a destination. How else will one ever create shopping destinations when no city in the world has the space to build anything in the heart of the town? A classic example is the shopping destination at Lille on the border of France

& Belgium. It houses the worlds largest multiplex (23 screens). Every imaginable store from Toys R Us to Carrefour has its presences thereon a usual weekend it takes shoppers an average of 20 minutes to find a parking in the parking lot built to park 4000-5000 cars! With more and more malls under construction from Indore to Jaipur and Mumbai to Kochi, these malls, which cover anything from 1,50,000 sq ft to 5,00,000 sq ft, are going to provide Indians with multiple choices of multiplexes, food courts, small shops, anchor Stores, department stores specialty stores such as candle shops, yoga shops and so on. FINANCIAL HIGHLIGHTS Particulars Revenue Profit Before Tax Profit After Tax Net Worth 2006-07 2005-06 2004-05 2003-04 2002-03 14396.79 8198.62 3965.99 2837.25 1455.56 3223.22 1467.01 2572.62 1188.15 4610.39 2011.22 263.73 50.36 790.72 172.44 83.48 453.96 78.76 47.67 150.25

REVENUE

PROFIT BEFORE TAX

PROFIT AFTER TAX

NET WORTH

OBJECTIVE OF THE STUDY To find out the reasons for transition of people from Delhi to National Capital Region (NCR). To find out the perception of people about the cities included in NCR namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad. To know the degree of importance of various factors which people consider while purchasing a house. To find out the perception of people with regard to the residential societies established by ANSAL.

RESEARCH METHODOLOGY SAMPLING METHOD Stratified method of sampling was used for faceto-face survey and the rest of the information was collected through telephonic conversations. SAMPLE SIZE People living in Gurgaon Housing and Society Complexes, in Noida housing complexes and in Ghaziabad (Indirapuram) Housing complexes were surveyed. Total Number of people surveyed was: 100 Sales Manager of under-construction Housing Complexes were also surveyed to know the degree of importance of various factors that people consider while purchasing property, from developers viewpoint. DATA COLLECTION METHOD Data was collected by using primary as well as secondary methods of data collection. Primary Method 1) Face to Face interview 2) Questionnaires 3) Telephonic Survey 4) Survey through E-Mail

Secondary Method 1) Magazines on Property 2) Internet sites on Property 3) Internet websites of popular property developers of India

PROBLEMS ENCOUNTERED DURING THE SURVEY Denial of permission to conduct survey in PVR shopping mall and few housing complexes like DLF Belvedere Park, Purles Ansal, etc. Travelling to far-off places from Delhi everyday. Analyzing the perception of people about different cities of NCR was little difficult as some respondents didnt have much knowledge about Ghaziabad and Faridabad.

FACTORS AND PARAMETERS CHOSEN FOR SURVEY The questionnaire was prepared in such a way so as to achieve all the three objectives mentioned above. In order to attain the objectives five major questions were included in the questionnaire along with few general questions. In order to achieve the first objective of finding out the reasons responsible for transition from Delhi to NCR two questions were included. One to find out the first pull that attracts the people most while buying the property (See Q1 of Housing Questionnaire given in Annexure 1). And the second question helps in finding out other major reasons for purchasing the property (See Q6 of Housing Questionnaire given in Annexure 1) FACTORS WERE 1. Brand name Brand name is something that immediately comes into your mind when you think of any product. Even in case of purchase of property, brand name plays a major role. Many people to prefer buy the property developed by well-known and reliable developers. Moreover properties developed by established developers help buyers in getting the best returns, as these properties can be sold any time at a premium. 2. Advertisements Its an old belief that advertisement can sell literally anything. In order to ascertain whether its true for property or not, it was also included as a first pull factor in the questionnaire.

3. Location This deals with property and connectivity to road links, airports, railway stations and bus stops. The more approachable the property is to the public transport terminal, the more value it holds. Proximity to the Central Business District also plays an important role in this aspect. 4. Affordability Budget plays an important role in short listing the options available in the market. Its only when the budget is decided, one starts looking for the available options in the price range decided. SOME OTHER FACTORS WERE: 1. Need for More Space 2. Need for Better facilities 3. Need for Healthy environment 4. Want for Quality Construction 5. Lack of facilities in previous residence 6. Proximity to Workplace 7. Job transfer In order to achieve the second objective of knowing the perception of

people about cities included in NCR a question related to it was included in the questionnaire (See Q13 of Housing Questionnaire given in annexure 1). PARAMETERS WERE 1. Location - This parameter includes all the locational factors such as proximity to central business district, to schools, to hospitals, existence of huge shopping malls, etc.

2. Business Hub This parameters helps in analyzing the perception that people have about the job opportunities and business prospects available in different cities included in NCR. 3. Quality of Living This parameter helps in analyzing what people think about the style of living prevalent in the 5 cities included in NCR. 4. Law and Order This parameter helps in analyzing what people about the safety and security situation prevalent in the 5 cities chosen for the survey. 5. Infrastructual Development This parameter helps in analyzing how respondents rate 5 different cities chosen for the survey, on the basis of conditions of road and highways, availability of public transport, etc. In order to achieve the third objective of knowing the degree of importance of various factors, which people consider while purchasing the property, two questions were included in the questionnaire. One to find the degree of importance of external factors (See Q2 of Housing Questionnaire given in annexure 1) and another to find the degree of importance of in-locality factors (See Q3 of Housing questionnaire given in annexure 1).

FACTORS WERE EXTERNAL FACTORS 1.Price Range 2.Connectivity to Public transport 3. Proximity to workplace 4. Availability of loan 5. Easy Payment Plans 6. Rate of Interest 7. Resale Value 8. Clear title of property 9. Proximity to School 10. Proximity to Hospitals 11. Proximity to Entertainment Centers IN LOCALITY FACTORS 1.Peaceful Locality 2.Pollution Free environment 3.Population/occupancy 4.Quality of Construction 5.Maintenance 6.Suitability of Home Type 7.Utilization of space 8.Water Availability 9.Power Backup 10.Safety-Security 11.Recreational facilities/Sports Complex 12.Car Parking facility, 13.Club Membership

DISCUSSIONS REAL ESTATE MARKET Construction sector has been the focus sector for some time as its impact on the economy is big by virtue of its being a huge employment generator. The real estate market is booming. Its growing at around 12% per annum. Today its boom time in the real estate market and homebuyers couldnt have asked for a better opportunity to buy a home. Indian developers are now not talking of anything less than world class. Infrastructure and economic development of some cities as well as the housing shortages are driving the boom. There is a fundamental change in the approach of the buyer, developer and the government. They all are seeking quality development. The middle class demands the best that money can buy. With the competition in the market, developers have to deliver the best within specified time frames and the government, discharged from the duty of construction has to keep everyones interest at heart.

The Major reasons for boom in the real estate market are: Easy Availability of Loan and Lower Interest Rate There is easy access to loans. The housing finance has posted a growth of 29 percent in the last fiscal, touching 53,685 crores. Further, interest rates on housing loans have come down and are much lower, between seven to eight percent as compared to 1314 percent five years ago. Affordability Another major reason for boom is that housing in India has become more affordable in recent times. A decade ago, a house cost nearly 15-20 times an individuals annual salary. Today the cost of a house has come down to just about three to four times an individuals annual pay package. Increase in number of nuclear families In the past, owing a home was a dream realized only after retirement. Largely because people looked at it as a means of providing for their children, having themselves lived in a joint family setup. Joint families are progressively getting included in the pages of history book even in a country like ours. Not surprisingly the rise in the number of nuclear families is pushing demand for housing further to cater to a generation that is not averse to taking risks. Nor are they hesitant when it comes to paying a price to realize their dreams

Investment Option Competitive offers by home loan companies combined with good quality projects developed by reputed builders having a number of amenities have made investing in properties very attractive Wherever there is growth and opportunity, investors are bound to be around and traditionally real estate has been a safe investment option. Property is looked upon by many as an investment option that appreciates substantially when compared to other traditional tools of investment. Migration Of Industries Another major reason for boom in the real market is the migration of industries to smaller towns leading to rural progress. With villages turning into towns and towns becoming metros, the property market is growing steadily. This revolution has directly resulted in greater demand for not just housing but also for the overall real estate market with heightened demand for better infrastructure, transportation facilities, entertainment zones, shopping malls, multiplexes and more.

DATA ANALYSIS Three tables and charts have been prepared for each of the three cities namely Gurgaon, Noida and Ghaziabad to analyze what respondents from each of these cities think about five cities included in NCR namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad on the basis of five parameters namely Location, Business Opportunity, Law and Order, Style of Living and Infrastructural Development and also to know the reasons for which they bought the property.

GURGAON Perception of people about the cities of NCR Business Location Opportunity Gurgaon 45 25 Noida 25 10 Greater Noida 2 16 Faridabad 20 35 Ghaziabad 8 14 Quality of living 40 25 15 10 10 Law and Order 35 27 18 10 10 Infrastructural Development 45 25 20 2 8

50 40 30 20 10 0 Location Quality of living Law and Order Infrastructural Development Business Opportunity

G urgaon Noida G reater Noida Faridabad G haz iabad

Findings:

1. Gurgaon buildings stand tall in each and every parameter. Gurgaon tops in all the parameters among Gurgaon respondents. 2. Though in case of Infrastructural Development Greater Noida and Noida are also ranked well by the Gurgaon residents. Probably the credit goes to DND flyover. 3. Location wise, people of Gurgaon feel only Gurgaon and Noida are good in the entire NCR as Greater Noida, Faridabad and Ghaziabad could fetch only 1, 2 and 1 favourable response out of total 100 responses.

First Pull to choose the Housing Complex

Brand name AdvertisementsLocationAffordability 46 10 55 72

Brand name Advertisements Location Affordability

Findings: 1. The basic reason for people buying property in Gurgaon in mass scale is its locational advantage. It shares border with the Capital of India. Moreover huge employment generating BPO companies are located in Gurgaon. Many Reputed schools and colleges have also come up in Gurgaon. Some of Indias biggest shopping malls having shops of international brands as well as famous national brands are also situated here. 2. Second major factor which attracted people to buy property in Gurgaon was affordability. Developers realizing that most of the

people shifting to Gurgaon will be from middle class society they constructed big towers with numerous reasonable flats. Since the price of the property kept by the developers suited the pockets of buyers they were able to buy it without any financial problem. 3. Third major factor was brand name. According to the survey it was concluded as for many respondents brand name was the prime reason for which they bought the property. In Gurgaon Housing Complexes have been constructed by popular and leading property developers of India like Ansal, DLF, Ansals, Unitech Etc. 4. Only small percentage of the total respondents feel that it was advertisements which made them buy the property. Advertisements can actually put the name of the property in the mind of the buyer but no one actually buys the property only on the basis of advertisements. Thus it will be wrong to say that advertisements are useless since they do help in selling though not directly.

Major reasons for shifting Quality of Better Healthy Increase in constructio Facilities environment living status n 38 Investment 11 11 Others 26

Reasons More space No. Of people 46 84 54 43 Lack of Proximity to Reasons facilities Workplace Job transfer Own house No. Of people 18 58 10 42

Better Location

Major Reasons for Shifting

90 80 70 Number of people 60 50 40 30 20 10 0
Increase in living status more space Job transfer Own house Prox. to workplace Better Facilities Lack of facilities Healthy environment Better Location Quaity construction Investment Others

Reasons

Findings: 1. Among various reasons better location is the most important reason for the people to shift to Gurgaon Housing and Society Complexes. Why location is most important has become apparent till now. 2. Proximity to Workplace and Better Facilities are close second and third most important reasons. Proximity to Workplace may become the most important reason in few years time as industry migration to Gurgaon is happening quickly. All the international brands are preferring Gurgaon over Delhi for their regional office. Moreover people in need of better facilities like water availability, Power Backup, Safety and security, etc also prefer to shift to Gurgaon as Housing complexes of Gurgaon provide all these facilities. 3. Need for more space, Need for Healthy Environment, Need for Own House and Increase in Living Status can be considered as other major factors for people shifting to Gurgaon Housing Complexes. 4. People also purchased property in Gurgaon for investment purpose. This reason may not be seen in such a large number in any other city of NCR. Its so because people consider investment in property in Gurgaon as a very safe bet and expect high return on Investment.

NOIDA Perception of People about the cities Business Opportunity 13 32 2 9 0 Quality of living 22 32 2 0 0 Law and Order 22 27 7 0 0 Infrastuctural Development 6 9 41 0 0

Location Gurgaon 2 Noida 54 Greater Noida 0 Faridabad 0 Ghaziabad 0

Perception of people about the Cities

60 50 40 30 20 10 0 Location Quality of living infrastuctural Development

Gurgaon Noida Greater Noida Faridabad Ghaziabad

Parameters

Findings: 1. In Location, Noida is a clear winner with 54 respondents choosing it as the best location in the entire NCR. That is a huge percentage. This shows that Noida people are happy with its Location. Noida is located close to the Capital of India and is also very closely located to Indirapuram, another upcoming city. 2. In all parameters other than location, Gurgaon has also been ranked as no.1 by many people. 3. One significant thing in this chart is that Faridabad was selected by many Noida respondents as no.1 in case of business opportunities available. 4. The most significant thing indicated by the chart is that people of Noida have chosen Greater Noida as no.1 in Infrastructural Development. Respondents have favorably marked for greater Noida while only 9 have marked for Noida.

First Pull to choose the Housing Complex Brand name AdvertisementsLocationAffordability 1 0 40 31

Most Important Factor

1% 0%

Brand name

43%

Advertisements Location

56%

Affordability

Findings: 1. In Noida just like in Gurgaon, location is the most important factor that pulls the people to buy a new home. 2. Advertisements have no role in the sale of homes but as said before in the report advertisements do add the advertised property as an option in the mind of the prospective buyer. 3. According to respondents from Noida Brand name of the developer didnt play a big role in making them buy the property. Its probably because Noida doesnt have highly popular brands like Ansals , ANSAL, Eros, DLF, etc. 4. Affordability is another major reason for the buying the property in Noida. As there is hardly any popular developer in Noida and the homes provided in Noida are not as luxurious as that in Gurgaon, the prices are very low as compared to the prices prevailing in Gurgaon. In Gurgaon Higher class and Upper middle class people also buy homes in large numbers whereas in Noida the number of high class and upper middle class people looking for new home is very less.

Major reasons for shifting Increase in Quality living constructi status on 13 9

Better Better Reasons More Space Location facilities No. Of people 31 28 35 Lack of Proximity to Job Reasons facilities workplace transfer No. Of people 5 2 0

Healthy environment 11 Own house 31

Investment Others 1 3

Main Reasons for Shifting

40 35 30 25 20 15 10 5 0 More Space Increase in living status Own house Better facilities Lack of facilities Healthy environment Quality construction Job transfer Better Location Proximity to workplace Investment Others

Number of people

Reasons

Findings: 1. One of the most important thing found out in the survey was that the one of the major reasons to buy the house was the desire of people to have their own house. This reason was not at all important in case of Gurgaon. This goes on to show that houses in Noida are very reasonable. Mostly people earlier living in rent have bought properties in Noida either to avoid high rents prevailing in Delhi or due to the desire of having an own asset. 2. Need for better facilities was tick marked by maximum number of people as a reason for buying the property. This again proves the fact that people buying property in Noida are generally from middle class who earlier used to live in less popular colonies of Delhi which are deprived of essential facilities like water, power and safety. 3. Another major reason for buying the property in Noida is Need for more space. Generally people earlier living in joint families or newly married couples prefer buying property in Noida as they are affordable. 4. Only 1 respondents have said that investment was the main reason to buy the property. This goes on to show that people dont generally buy property in Noida for investment purpose. 5. Another important point to notice is that in Noida proximity to workplace reason is insignificant. Its probably because virtually nonexistence of BPO companies in Noida.

GHAZIABAD Perception of people about the cities of NCR Business Location Gurgaon 20 Noida 93 Greater Noida 2 Faridabad 1 Ghaziabad 34 Opportunity 28 75 6 17 24 Quality of Living 59 74 9 2 6 Law & order 60 64 12 5 9 Infrastructure 40 49 48 0 13

Perception of People about the Cities

Number of People
100 80 60 40 20 0 Location business Opportunity Quality of Living Law & order Infrastucture Gurgaon Noida Greater Noida Faridabad Ghaziabad

Parameters

Findings: 1. 1.Respondents from Ghaziabad have chosen Noida as the best location in the entire 2. NCR. As many as 93 respondents have marked favourably for Noida This clearly goes to show that Ghaziabad respondents have good image of Noida as far as location is concerned. 3. In all other parameters there is a clash between Noida and Gurgaon but Noida seems to lead in every parameter. 4. In business opportunity Noida have again been favoured while rest four have almost same image in the mind of Ghaziabad respondents. 5. In case of quality of living both Noida and Gurgaon have been number 1. Style of living in other three places do marked by many as respondents. 6. In case of law and order Ghaziabad and Faridabad are clear losers. This fact has been observed in all the three cities. 7. In Infrastructure Greater Noida enjoys good reputation.

not have enjoy good reputation in the mind of the Ghaziabad

First Pull to choose the Housing Complex

Brand Name AdvertisementsLocationAffordability 14 11 85 92

Most Important Factor

7%

5%

Brand Name 46% Advertisements Location Affordablty 42%

Findings: 1. In Ghaziabad affordability is the main reason for the people buying property out there. The occupied Housing complexes of Ghaziabad are pretty old and very reasonable. Developments in Ghaziabad started much before it started in Gurgaon and Noida. So at that time prices were low. Now with the massive development of Noida, Gurgaon as well as of Indirapuram price of property have increased like anything. 2. Location is the second most important factor which makes

people buy property in Ghaziabad. Ghaziabad is located close to Noida as well as Delhi. Moreover Indirapuram, the real upcoming area is its neighbour. Moreover Ghaziabads development took place years ago so it already has lots of facilities available. 3. Advertisements and brand name did compel few to buy the property in Ghaziabad but still they were not so important factors.

Major reasons for shifting More Space 49 Better Location Better facilities Quality Healthy Increase in constructi environment living status on 11 Investment 1 2 Others 20

Reasons No. of People

71 37 9 Proximity Lack of to Reasons facilities workplace Job transfer Own house No. of People 9 12 5 54
Major Reasons for Shifting
80 70

Number of People

60 50 40 30 20 10 0 More Space Increase in living status Job transfer Own house Better facilities Healthy environment Better Location Quality construction Lack of facilities proximity to workplace Investment Others

Reasons

Findings: 1. Though Ghaziabad respondents have rated Affordability as the major reason for buying the property in Ghaziabad but if we exclude affordability as a factor we find that location too was a very important factor as we can see in this chart. 71 Respondents have marked location as a reason for buying the property

2. Just like in Noida, the desire to have an own house is a major reason to buy a property, in Ghaziabad too. This proves the reliability of the previous chart which shows that the major reason to buy a property in Ghaziabad is affordability. 3. Third most important reason for buying property in Ghaziabad is requirement of more space. 4. Same as Noida reasons like proximity to workplace and investment are almost insignificant.

RECOMMENDATIONS As ANSAL enjoys good brand name and have a battalion of brand loyal customers it shall make sure that the maintenance of its occupied housing complexes is taking place in the best possible manner. Due to stiff competition in the market ANSAL shall focus on the Quality of homes provided and shall also try its best to meet different kind of requirement of different buyers. Due to the current oversupply situation in the market ANSAL shall resist from increasing price of its property. ANSAL shall help and lure the prospective buyers by helping them in getting housing loans. It shall collaborate with some popular banks for this purpose. These days even banks are more than willing to provide home loans. ANSAL shall provide the right amount of greenery in its housing complexes, as pollution free environment is a very important factor that people consider while purchasing the property. Gurgaon, Noida and Greater Noida are the places where ANSAL shall come up with new projects as they have been marked favourably by the all respondents. Respondents do not have good image of Faridabad and Ghaziabad while Indirapuram is yet to prove its worth.

Advertisement for selling property in Gurgaon can be Why drive for 45 minutes to your workplace everyday, take a flat in Gurgaon today. As proximity to workplace is the major reason for people buying flats in Gurgaon. Whereas for Noida and Greater Noida advertisement can be like Fed up of paying rent. Now realize your dream of having a house of your own-COME TO NOIDA as desire of having an own house is the most important reason for the people buying property in Noida.

CONCLUSION The major external factors which people consider while purchasing the property are Price, Availability of loan and Proximity to workplace. The major In-Locality factors which people consider while purchasing the property are Quality of construction, Availability of water and Pollution-free environment Perception of people about different cities of NCR Location wise Gurgaon and Noida are adjudged the best by the respondents Business opportunity wise Gurgaon due to the mass presence of BPO company and offices of MNCs and Noida due to its proximity to Delhi are consider good by the majority of respondents. In Quality of living again Gurgaon and Noida leads the pack but out of the two Gurgaon is better due to the existence of Higher and uppermiddle class people in large number. In Law and Order all the places are bad as per the respondents but out of the five Gurgaon is the best. As far as infrastructural development is concerned Greater Noida enjoys good reputation among the respondents of all the three cities. In totality, both Location as well as Affordability together account for more than 95 % of the total responses.

 In Gurgaon major reasons other than affordability and location, to purchase the property were proximity to workplace and healthy environment. In Noida and Ghaziabad other major reasons were almost the same -desire to own an own house as well as need for better facilities.

BIBLIOGRAPHY BOOKS & JOURNALS Real Estate in India , JM PUJARI, Manav Publication, 2006 Real Estate, monthly journal , vilume 2, 2006 India Today Buyers Guide November 2006 Edition

INTERNET LINKS

www.ansal.com www.unitechgroup.com www.dlf-group.com www.Ansalspropertiesltd.com www.eros-group.com www.eldecogroup.com www.parsvnath.com www.ashianahousing.com www.gurgaonproperties.net www.realestatencr.com www.gurgaonrealestate.com www.estatedeveloper.com

ANNEXURE-1 SAMPLE QUESTIONNARE Name_____________________________ Household income per annum: Below 3 lac 3-5 lac 5-8 lac Rental above 8 lac

Self-owned property

If rental, have you invested in some other housing complex: Yes No Duration of stay_________________ Size of family ____________________ No. of cars owned_____ Luxury 1. What factor was the first pull to choose this housing complex Brand name of developer Location housing complex: Price Range Connectivity to Public Transport Proximity to Work Place Availability of loan Easy flexible Payment Plan Rate of interest Resale value Clear title of property Attractive and frequent advertisement Affordability
Not at all

Types of cars Low segment Mid

2. To what extent d do the following factors influence your choice of a

Very large extent

1 1 1 1 1

2 2 2 2 2

3 3 3 3 3

4 4 4 4 4

5 5 5 5 5

1 1

2 2

3 3

4 4

5 5

Proximity to school Proximity to hospitals Proximity to Entertainment

1 2 3 4 5

centers 3. To what extent do the following in locating factors influence your choice of a housing Peaceful locality Pollution free Environment
1 2 2 2 3 3 3 4 4 4 5 5 5
Not at all Very large extent

1 1

2 2

3 3

4 4

5 5

Population/Occupancy
1

Quality Of Construction Maintenance Suitability Of Income Type Utilisation Of Space Water availability Power back up Safety- Security Recreational/Sports Complex Car Parking Club membership

1 1

2 2

3 3

4 4

5 5

1 1

2 2

3 3

4 4

5 5

1 1

2 2

3 3

4 4

5 5

4. Your previous residence was a: (mention if rental Yes No)

 Developer housing complex Society flat (DDA, SFS etc)

Independent house Others

5. Specify the previous residence mentioned above:_____________ 6. What were the reasons to shift from previous residence: Need for more spaces Need for better facilities Increase in living status Need for better location Need for healthy environment Want for Quality Construction

Lack of water and power (in previous locality) Lack of recreation (Clubs, Cinemas, Sports Complex) others 7. Are you planning to sell current property (move out in case of rental): Yes No 8. The property is self-owned Rental 9. What type of property are you shifting into: Developer housing complex (Unitech, DLF etc.) Independent house Society flat (DDA, SFS etc.) 10. when are you planning to shift: 0-3 months more than Gurugaon Ghaziabad 3-6 months Others Noida Faridabad Greater Noida Delhi Others 3-6 months 6-12 months others

11. Where are you planning to shift into:

12. Which of the following are the reasons for shifting residence: Need for more spaces Need for better location Need for healthy environment Need for better facilities Want for appealing construction Increase in status of living Lack of recreation Lack of Water and Power Others: 13. Rank the cities on the following parameters from 1-5

Location Ghaziabad

Guragaon Noida Greater Noida Faridabad Gurgaon Noida Greater Noida Faridabad

Ghaziabad

Location Business Hub Quality of Living Law and Order Infrastructural

Development 14. If you sell this property what will be the expected return: Loss No returns Low returns Medium returns High returns _____________________________________________________________ __________ All information will be kept confidential. The above data is collected is for the purpose of market study only. Place: ______________ Developers: ___________ ___________ Q1- perciption of people about 5 cities gugaon , noida, Greater noida, faridabad, ghaziabad on the basis of House Complex: ___________________ Price: ___________ Type of flat:

Gurgaon Noida Greater Noida Faridabad Ghaziabad

Location 40 25 15 10 10

Business Opportunity 30 26 20 14 10

Quality of living 45 30 15 5 5

Law and Infrastructural Order Development 40 35 15 20 10 20 20 15 15 10

Q2-First pull factor to choose house Gurgaon Noida Greater Noida Faridabad Ghaziabad Brand Name 30 20 20 15 15 Advertisements 25 23 22 25 5 Location 30 25 20 15 10 Affordability 30 25 15 20 10

Q3-Major reasons for shifting

Gurgaon Noida Greater Noida Faridabad Ghaziabad

Increase More Better Better Healthy in living Quality Space Location facilities environment status construction 30 25 30 30 30 25 20 25 20 20 15 20 20 30 20 15 25 15 10 20 5 15 15 15 15 20 15 15 20 20

Chapter 1INTRODUCTION

Chapter 2 COMPANY PROFILE

Chapter 3 OBJECTIVE OF THE STUDY

Chapter 4 RESEARCH METHODOLO GY

Chapter 5 DISCUSSIONS

Chapter 6 DATA ANALYSIS

Chapter 7 MAJOR FINDINGS OF THE STUDY

Chapter 8 CONCLUSION

Chapter - 9

ANNEXURE
BIBLOGRAPHY QUESTIONEAR