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A

SUMMER TRAINING REPORT

ON

“STUDY OF DIFFERENT MODES OF PROMOTIONS USED BY SMALL AGENTS &


BUILDERS IN REAL ESTATE INDUSTRY OF DELHI NCR”

SUBMITTED TO UTTARAKHAND TECHNICAL UNIVERSITY IN THE PARTIAL


FULFILMENT OF

“MASTER OF BUSINESS ADMINISTRATION”

(TWO YEAR’S REGULAR DEGREE PROGRAMME)

SUBMITTED BY UNDER THE SUPERVISION OF

DAYADHEESH TRIPATHI PROF. PUSPENDER SINGH


M.B.A. (4th SEMESTER)

BATCH: 2015-2017

DATE: 12th May, 2017


Declaration

This is to certify that Mr. Dayadheesh Tripathi has completed the research project titled “Study
of different modes of promotions used by small agents & builders in real estate industry of
Delhi NCR” under my supervision in partial fulfillment of the MASTER OF BUSINESS
ADMINISTRATION degree of Quantum school of Business, Roorkee Uttarakhand.

Supervisor’s signature:
Date:
Place:
ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me during the
completion of this project. First and foremost, my deepest thanks to Mr. Amit Arora, (Director of
NestKeys Infratech Pvt Ltd), my mentor during the course of the project for guiding me. He has
taken great pains to go through the project and make necessary corrections as and when needed.

I am also desirous of placing on record profound indebtedness to Mr. Puspender Singh


(Professor) of Quantum School of Business for the valuable advice, guidance precious time and
support that he offered.

I would be failing in my duty if do not acknowledge the gratitude to Director of Quantum School
of Business, who motivated us a lot in carrying out this project.

Last but not least, I would also like to thank all the respondent for giving us their precious time
and relevant information and experience, as and when required without which this project would
not have been possible.

Dayadheesh Tripathi
Table of Content

Research Title 1
Certificate_________________________________________________________2
Declaration ______________________________3
Acknowledgement 4
Table of Content ____________5

Chapter: 1……Introduction (Industry Profile)


Historical Evaluation
Growth Rate
Players in Industry
Key Challenges

Chapter: 2……Company Profile


History
Products
Organizational Structure
Chapter: 3…….Review of Literature
Chapter: 4……..Research Methodology
3.1…..Need of the Study
3.2….Objectives of the Study
3.3….Research Design
a) Population
b) Sample
c) Sample size
d) Sampling technique
e) Sampling unit
f) Data Collection
g) Scope of the study
h) Techniques of Analysis
3.4…Limitations of the study
Chapter : 5……Data Analysis & Interpretation..
Chapter : 6……Findings & Conclusions
Chapter : 7……Recommendations
Bibliography
Appendix
Questionnair
Chapter: 1...........Introduction (Industry Profile)

Real Estate Industry is rapidly growing at a fast pace in India, the drastic change in population is
demanding for more residential apartments, multistoried buildings thus more and more
construction is taking place which in return benefits the Real estate industry, it also plays a
critical role in the development of India’s economy. It is the second largest employer after
agriculture.
High Growth in services as well as manufacturing sector has also resulted in high demand for
commercial and industrial real estate.
Real estate industry is divided into four sub-sectors: Housing, Retail, Hospitality and
Commercial. The housing sub-sector contributes five-six per cent to the country's gross
domestic product (GDP). Meanwhile retail, hospitality and commercial real estate are also
growing significantly.
Growth in the Indian economy has stimulated demand for land and developed real estate across
industries. Demand for residential, commercial and retail real estate is rising throughout India,
accompanied by increased demand for hotel accommodation and improved infrastructure.

The Indian real estate sector plays a significant role in the country's economy. The real estate
sector is second only to agriculture in terms of employment generation and contributes heavily
towards the gross domestic product (GDP). Almost five per cent of the country's GDP is
contributed to by the housing sector. In the next five years this contribution to the GDP is
expected to rise to 6 per cent.

Almost 80 per cent of real estate developed in India is residential space the rest comprises of
offices shopping malls hotels and hospitals.

Historical evaluation

The Real Estate Scenario in India is witnessing a huge growth as most of the metropolitan cities
are escalating the property map with more and more projects. According to reports, an estimated
size of the Indian real estate sector is $ 12 billion of country’s 600 billion economy. The real
estate sector is witnessing a stable and further sustainable boom and the market is expected to
reach $45 billion in next five years. This boom in the real estate market comprises of basically
three sectors, i.e. residential, commercial and retail. This boom in real estate market can be
apparently observed in delhi, greater noida and other major cities of the country.
As the demand is getting higher, more and more players are entering the industry with a wide
range of project to offer. The market trends in Indian real estate sector are very healthy and are
indicating towards a positive trend for the long-term investors. Other factors which are likely to
contribute to long term demand for real estate in India are rapid population growth, rising
disposable incomes for individuals and easy credit lending facilities.
To conclude Indian real estate sector promises to be a lucrative destination for foreign investors
into the country. The Indian realty sector, if channelized properly, can be helping the growth of
several other sectors in India through its backward and forward linkages.

Growth rate

Indian real estate industry has been expanding at an exponential rate. Favorable demographics
conditions improvement in basic infrastructure rising purchasing power availability of cheap
finance nuclear families professionalism in real estate and reforms initiated by the government
are some of the major drivers of this spectacular growth. According to industry estimates the real
estate industry in India has been growing at 33 per cent CAGR (compound annual growth rate)
and could be a $50 billion industry in the next four years. The upturn straddles all the major
sectors of the industry such as commercial residential retail industrial hospitality and Healthcare.

Players in the industry

• Ansals
• Founded by Lala Chiranji Lal Ansal
• By far most dominant activity of Ansals has been Real Estate Promotion & Development
• company has several landmark high-rise commercial building like Statesman House,
Ambadeep, Antriksh Bhawan, Tolstoy House, Indra Prakash, Navrang House and Ansal
Bhawan
• Ansals have also completed several residential buildings like Gauri Sadan, Upasana at
Hailey Road & Dhawan Deep at Jantar Mantar road, all in the heart of New Delhi at
Connaught Place.
• There is the most prestigious “Ansal Plaza” Shopping Mall associated with its work
• Also it has made elite townships, Sushant Lok and Palam Vihar in Gurgaon and several
other places all over the country.

➢ Financials of Ansals API

• Their profit declined by 81.24% in the last financial year over the last year.
• This is one of the badly hit company by the economic slowdown.
• 569 is the all time high of this company in 2006 and now trading at just 10% of its all
time high
➢ Parsavnath Developers

• It was incorporated on July 24, 1990 under the Companies Act, 1956 as Parsvnath
Developers Limited.
• With more than two decades of experience in its repertoire, the group has already
stamped its presence already in seventeen states and going Pan – India.
• It has made various developments in areas like GURGAON, Noida, South Delhi.

➢ Unitech Group

• Plans to invest US$ 720 million in building hotels in the country


• Its partner for this venture is Marriott International.
• Carved a niche for itself in India with its sprawling properties and projects in Bangalore,
Gurgaon, Noida, Greater Noida.
• Unitech Group took over projects in International areas as well.
• Actively involved in construction projects of power plants, expressways, highways,
transmission lines, classrooms, amusement parks.
• Radisson Hotel, New Delhi has won accolades for its wonderful infrastructure,
astounding interiors, ideal location and extra ordinary facilities for the distinguished
customers.
• Rohini Amusement Park is also a creation of Unitech Group. The commercial complexes
like Global Business Park, Signature Towers, Unitech Business Park and Unitech Trade
Center and the launch of Millennium Plaza & Infocenter in Gurgaon have made Unitech
Builder earn a good reputation in the industry.

➢ DLF Group

 Founded in 1946
 DLF Group is one of the biggest real estate giants
 Built many high-quality buildings across the country, specifically in Gurgaon
 Tied up with Hilton Group to build whopping 100 hotels in India over the next few years.
 In current expansion plans, DLF has over 425 million sq. ft. of development across its
businesses, including developed, on-going and planned projects.Spread over 32 cities,
mostly in metros and key urban areas across India.
➢ Financials of DLF

 DLF is the market leader in this sector with net profit of 1547 cr.
 It was way lower than its last year profit by more than 1000 cr.
 It was well supported by the timely launch of IPL.
 The share of this co. touched the all time high of 1227 in dec. 2007 which was just 6
months after its issue and now trading at 337.

➢ K. Raheja

Raheja Developers Limited was incorporated in the year 1990 by Mr. Navin M. Raheja, the first
generation entrepreneur. Today, the company enjoys a strong presence in NCR and has made its
position as one of the largest companies in the Real Estate Industry. The company is one of the
fastest growing entities in the realty sector with a difference that offers luxury for reasonable
costs, excellent customer care levels with highest customer satisfaction index and the highest
imaginable standards for the welfare of its staff, society as well as for the environment.

The Company has traversed a path of steady growth & expansion and has posted increasing
turnover and profits year after year. The systems have been strengthened and new processes have
been added.

Today, the company is one of the largest in the Real Estate Industry with projects all over India.
It is also one of the biggest companies in India with executable and sanction projects over 60
million sq. ft. in hand with projects spanning over 1000 acres of land at various stages of
deliberations. The company so far has executed and delivered 36million sq.ft. of mainly
residential and commercial projects including farmhouses, plotted development and hotel
properties.

The company is managed by highly qualified professionals who are fully engrossed to ensure
that the company maintains its high standards in quality construction, timely delivery and
customer satisfaction. The company has always strived hard to keep its commitments and thus
enjoys an extremely resonant reputation in the construction industry.

Key Challenges for Industry

In order to survive in this environment, companies must consider the market trends that will
likely shape the industry over the next few years. This will help real estate companies to
understand the challenges they will encounter and to turn them into opportunities for process
improvement, enhanced flexibility and, ultimately, greater profitability.

Market trends for the real estate industry can be summarized by five fundamental themes:

• Bankruptcy Of Investment Banks and Crash of US Economy


• The Housing Bubble Burst
• Investment in Real Estate by PE Firms

➢ BARRIERS IN GROWTH OF REAL ESTATE

• Skill Shortage.
• Non Availability of Statistics
• Overvaluation of Property
• Highly Fragmented
• Lack of Transparency.

➢ CONSTRUCTION COST increased


• Bricks Prices Increase by 30-35 %
• High Interest Rates
• Labour Rates Escalated to 5-10 %

➢ Fall of Sensex and Real Estate Stocks

➢ Increasing Prices Decreasing Demand


• Dlf
• Unitech
• Parsarvnath

IMPACT OF RECESSION ON REAL ESTATE

• KEY ISSUES
Incompletion Less demand Cash
of previous Bad Debts. in all starvation.
projects. segments.

Fig 1.1

MEASURES TAKEN BY HUDA Haryana urban development authority

• Launched affordable housing project.


• Payment of short term debt by raising long term debt.
• Terminated projects with long gestation period.
• Sale of properties for liquidity preservation.
• Cost reduction through tight cash flow.
Chapter: 2........Company Profile

Nest keys – Nurtured with an idea to shake up the unorganized property market to a Need based
Property Solutions Specialist with team of business associates in this ever changing dynamic,
non regulated property space and to help them manage their customer’s investments grow with
right knowledge and skills.

Company’s philosophy is based on nurturing the right talent with imparting them the adequate
knowledge to deliver the right investment /property solutions to customer. The core team having
40 plus years of professional experience in understanding the Indian environment and setting up
new distribution channel and mentoring the associates with innovative investment solutions,
technology, operations and customer service management assistance to entrepreneurs entering
into property space and helping them managing there clients in a structured approach. Company
has its various channel partners through which it runs its operations. The real estate companies
such as 99acres.com, makaan.com, housing.com, indiaproperty.com, propertywala.com,
propertytiger.com, commonfloor.com, magicbricks.com, etc. are authorized channel partners
with the company for running its operations.

Working Process of the Company

1. The real estate companies such as 99acres.com, makaan.com, housing.com,


indiaproperty.com, propertywala.com, propertytiger.com, commonfloor.com,
magicbricks.com, etc. are authorized channel partners with the company for running its
operations.
2. Magic bricks, 99 acres.com, Brand recourse and various other websites where people put
their queries regarding property. The data we get from search engine is termed as leads in
real estate business and investment business.
3. We get the leads of clients with name and contact information with e-mail address from
these sites.
4. Our task involves calling to these clients, ask their queries and provide them better
solution according to their need.
5. Interested Clients come to our office for further discussions and site visit.
6. After site visit if they get satisfied gives booking amount to confirm their units and get
the allotment letter.
7. If unit gets confirmed the whole process is known as closure of deal (selling of units).
8. And if they want to take loans we provide the documents of the whole project which
helps them to take loan from the leading banks and he can give his further payments of
the project in which he has invested.
History of company

➢ Nestkeys Infratech Pvt Ltd was established in 2014 based in gurgaon Haryana. with its
branch office at modal town delhi. The core team having 40 plus years of professional
experience in understanding the Indian environment and setting up new distribution
channel and mentoring the associates with innovative investment solutions, technology,
operations and customer service management assistance to entrepreneurs entering into
property space and helping them managing there clients in a structured approach.

Company is running under supervision of three directors.

1) Mr. Abhinav – Director – Franchisee Development

2) Mr. Amit – Director – Business Strategy

3) Mr. Kshitij – Director – Direct Sales Support Team

Company’s website is a best place to start your real estate search.

NestKeys is an all-in-one real estate site where your search for all property needs ends and you
can find latest information about real estate markets and trends to help you figure out exactly
what, where, and when to buy, sell, or rent. With our nationwide presence you can also find a
professional real estate agent, view prices of recently sold homes, and see home values in your
nearby locations. Get advice and opinions from your local area real estate agents, brokers, and
other local experts exclusive on Nestkeys only.

Other partners are as Magicbricks.com. It was launched by Times Business Solution Ltd in
August 2006, as a platform to bring together property buyers and sellers in the real estate
industry.

➢ Within three months of its launch it became the No.1 property portal.

➢ Magicbricks.com offers pan coverage of over 800,000 listings.

➢ MagicBricks.com currently records over 10 million page-views per month.

➢ Magicbricks.com has over 6 lakh registered users, including over 65000 real estate
agents and more than 13,000 builders.
➢ It offers services like location Map Service, Email Alerts, Exclusive developer Micro-
Sites, Magic SMS service, Click to call, etc.

Products

AFFORDABLE HOUSING

Affordable Housing Policy, Haryana 2013, Approved by Government on 6th Aug. 2013
On PPP Model (Public Private Partnership)

What is Affordable Housing?


Group housing projects licensed by Govt. of Haryana in “Pre-Defined Sizes”, “Pre-Defined
Rates” and in targeted “Time Frame Completion Period”.
Why Affordable Housing?

Affordable Housing has come up with an increasing demand for consumers in prospect to give
them an opportunity to own a house at a very economical cost as well as to give them an
opportunity to take the pleasure of property appreciation in comparison with the normal housing
apartments. Three main reasons for you to invest in affordable housing apartments without any
delay in your thought to this investment:

• Pre-Defined Sizes
• Pre-Defined Rates
• Confirmed time frame completion period

This new thought of bringing PPP Model (Public-Private Partnership) keeps a constraint on the
builder to deliver the project on time else builder has to face a huge penalty of his “License
Cancellation.”
HUDA Houses are better proposition than DDA’s

• Huda Houses are available at the rate of 3600-4000 per sq ft in Gurgaon.


• Under Haryana government’s scheme the flats can be transferred after one year of
possession.
• Charge on carpet area will help buyers help around 25-35% of the prices over other
private or DDA units.
• Huda Scheme suitable for industrial employees and buyers working out-skirts of Sonipat
or Panipat.
• Huda has roped in private players of maintenance.

What are the terms for Affordable Housing?


• License granted for Affordable Housing cannot be converted into normal Group Housing.
• Allotment is provided by only Draw and Booking is on First Come First Serve basis.
• Completion time for these projects is 4 years from the date of approval of Building Plans
and Environment Clearance Certificate whichever is later.
• Sizes are Pre-Defined by Govt. are 28 SQM to 60 SQM.
• Minimum area for projects is 5 Acres and maximum area is 10 Acres.

Why these projects are in Affordable Rates ?

Government took the initiative to give the benefit to Middle Class and Lower Middle Class
families so these projects are in affordable rates. But there are so many factors which makes it
affordable.
• Builder purchase land on normal rates but get Benefit on below things:
o License Fees and Land Conversation Fees is Waived Off.
o Internal Development Charges (IDC) is Waived Off.
o External Development Charges (EDC) is on Plot Rates not on Square Feets.
o If completion of project within 42 Months then last installment of EDC will be
Waived Off.
o 5% of Flats are reserved for Builder for his Friends & Relatives.
• Increased FAR provided by Government for these projects up to 20%. Approved FAR is
225.
• Increased Density provided by Government for these projects as minimum is 850 PPA
and maximum is 900 PPA. Ratio set by Government is 5 Person per Flat.
• Builder can utilize 4% of the area as Commercial as per his desire Rates. Approved FAR
for commercial is 175.

What are the Benefits of Affordable Housing ?

• All projects are Maintenance Free for 5 Years after possession. Builder will take care for
the maintenance of the project.
• Rates are Pre-Defined by Government for these projects as below:
o Potential Towns of Haryana : Rs. 4000 per Square Feet
o Low Potential Towns of Haryana : Rs. 3600 per Square Feet
o Other Towns of Haryana : Rs. 3000 per Square Feet
• All rates are on Carpet Area. Client saves up to 30% to 35% on these projects.
• Free Parking for Scooter which is half of the size of car parking.
• There are No Other Charges in these projects except Service Tax @ 3.09%.
• Balcony will be on reasonable rates of Rs. 500 per Square Feet. But not more than 100
Square Feet.
Which kinds of Facilities are available in Affordable Housing ?

• Scooter Parking is mandatory.


• Community Hall of the size of 2000 Square Feets is mandatory.
• Crèche/Anganwadi of the size of 2000 Square Feets is mandatory.
• Huge open area as Parks or Gardens.
• Open Car Parking for Visitors.
• Builder can provide more facilities also but not mandatory.

What is the Booking and Allotment System for Affordable Housing ?

• Purchase an Application Form from Company, Banks or Channel Partners.


• Fill the form and submit it with 5% of Flat Price as DD, PO or Cheque at Company or
Channel Partner’s office.
• As per Policy 95% of the total number of Flats will be allotted by Lucky Draw and 5% of
the total number of Flats will be Reserved for Builders for their Friends & Relatives.
• After examination of Forms, Projects and other Important facts, Senior Town Planner
(HUDA) will fix the date of draw.
• Draw will happen in the presence of Huda Officials, Deputy Commissioner or
Representative and Builder’s Representative in Public.

What is the Payment Plan for Affordable Housing ?


Allotment is basis on Lucky Draw as per Policy payment plan is as below:
• 5% at the time of Booking
• 20% at the time of Allotment (within 15 days)
• 75% within 3 years as Half Yearly Installments of 12.5% each

With Service Tax @ 3.09%


What is Confirm Booking in Affordable Housing?

As per Policy Builder have the right to Reserve or Give 5% of the total number of Flats to his
Friends or Relatives. Builder sell these Flats on Premium to the people who are Interested for the
project and booking of flats. Benefits of confirm bookings are as below:
o Rates are much Less than other General Projects near about. Differences in rates are from
40% to 60% on Super Area and if calculated on Carpet Area it can be much more.
o Builder get 10 to 12 times more applications for bookings and allotment is on Lucky
Draw publically so it Assure allotment of Flat.

What are the Terms for Builder for Affordable Housing set by Government ?
• Builder will give Possession within 4 Years.
• All License must be Approved before allotment.
• Builder cannot sell Flats directly to public.
• All allotments will be by Lucky Draw only in public.
• Builder will provide Maintenance for 5 Years after possession.
• Builder will deposit Security to HUDA as below:
o In Potential Towns 15% of total Amount of Project.
o In Other Towns 10% of total Amount of Project.
• After the possession Builder will get 90% of Security Deposit refund as per Occupancy
Certificate issued by Govt. floor wise.
• 10% of the Security Deposit will be deposited to the HUDA for next 5 Years as
Maintenance Security.

What are the Terms for Applicant for Affordable Housing set by Government ?

• One person can Apply only for One Flat in One Project.
• Can apply in more than one Affordable Housing but in case get allotted in more than one,
have to Surrender other flats.
• As per Policy there must be No Property in the name of Applicant or on his/her Spouse or
Children name in Haryana.
• Cannot Sale Flat before 1 Year from the date of Possession. Not even on GPA.

Is Loan available on Affordable Housing by Banks ?

Yes All Leading Nationalize Banks provide loan on all Affordable Housing Projects up to 75%.

Promotion
Canopy installation for promotion at prime locations of city.
It consist of installation of canopy at the prime locations of the city which results in getting the
attention of large no of people. A team of property experts are available at canopy for giving
knowledge to the interested people about the company & its product services. There are also
available brochures, location map, product introductory sheets, cost sheets, availability of leaf
lets of bank consisting interest rates for loan, etc. all documents consists of information such as
address & contact details of the company officials.
Other promotional activities consists of mass mailing, bulk messaging, online advertising such
as on Google adward on social networking sites for example advertising on linked in , face book
page, twitter, etc.
FOOT BANNER – Homepage/ City Special Page

It is a unique Banner which Display’s the Projects / properties every time the page is opened.

Benefits: - A well Planned Banner is placed on the page footer which scrolls with the page,
which constantly attracts attention.

AGENTS GALLERY – City Page


Advertise on the city special page with name and description

Benefits: - it gets Maximum exposure with logo, name and description which has the advantage
of high visibility and branding.

Shoshkele (animated banner) Homepage/ City Special Page


It is an intrusive flash banner which appears each time the page is opened and it gets the
maximum response.
Benefits: - Animated Pop-up is designed in such a way that it catches the maximum Attention
and ensures it reaches the targeted audience.
FEATURED BUILDERS – City Special Page / Builders Search Page

Gets a special display in the left panel of all relevant city special pages.

Benefits: - One unique micro-site is set up to promote business

PREMIUM PROPERTY LISTING


Multiple responses with a special display format in property search result. Get higher positions
comparing free property listing it also adds Brand value.

Growth of Internet advertisement


Internet advertisement has grown immensely around the globe , as internet has got a vast reach
which can allow advertisers to reach significantly more people at a very less time and in a cost
effective way, nowadays people are using internet to do everything which starts from social
networking to doing online transactions , thus internet has been playing a dominant role . thus
the advertisers are choosing this medium to promote their business in a cost effective way .
Internet advertising is becoming a platform and a choice for local as well as for global
advertisers it has become one of the key tools that companies use to attract attention for their
product or services . the growth of this particular media attracts the attention of advertisers as a
very good source or we can say a productive technique to bring in customers in a cost effective
way .
Online advertisement also helps the users/consumers to get relevant information about a
particular product, this may not mean a sale of a product but it may drive the consumer to get the
product from the store of which he/she has got the information .

The graph below shows the revenue growth by the internet. Advertisement Bureau that internet
advertisement revenue reached $8.4 billion dollars in Q1 of 2012. This Q1 record marks a 15%
increase over the Q1 2011numbers at $7.3 billion.

FIG 2.1
This means that internet advertisement is continuing to become a media of choice for consumers

Effects of internet Advertisement on Agents and builders:

Internet advertisement offers so many facilities to the to the users of it, Still agents and builders
prefer Newspaper Advertisement as their first preference of advertisement and then Internet but
online portals they offer many benefits as compared to newspaper ads for example if the the
agent want to edit his ad he can do so but if we talk about newspaper ad the user cannot do so
also thus editing facility allows agents to add few more properties in their ad by simply clicking
on the the edit option also if they refresh their site the particular agent page is shown at the top .
Many top builders such as DLF , Avani , Merlin group etc are mostly dependent on internet
advertisement and they spend huge amount of money in online ad , but they get a good response
as they own the special city page or premium page.
Many Agents find online advertisement as cost effective as they offer so many facilities, but
these facilities can only be beneficial if the user has knowledge of computer .
Therefore it has been a mixed effect as few agents and most builders prefer online ad as they
have got a good response but in the years to come online ad for small agents will become a good
way to promote their business as the investment is quite low and return is high

Modes of promotion used by agents and builders

❖ Different promotion techniques used by agents and builders are mentioned below :

✓ Banner/Hoarding: This type of Promotion is commonly seen by Small agents where


they but their banners in the streets and promote their business to get response from the
buyers . If we talk about builders generally they put their hoardings in the place where
more people can see their Advertisement thus builders mostly don’t put their hoardings
everywhere but they are quite choosy in doing that.

✓ T.v : Small Real estate agents generally don’t promote their business though this medium
but Builders prefer this medium, as it reaches the mass builders like DLF, Godrej, merlin
group do put their advertisement in T.V.

✓ Pamphlets: Small agents promote their Business through Pamphlets they give pamphlets
which consists of their name , phone number , address etc . so that the buyers who want
to reside in a particular place can contact them . sometimes it can also be in the form of a
visiting card.

✓ Newspaper : Newspaper is the most common medium through which both builders and
Agents promote their business . this kind of promotion is widely used and widely
accepted as it is user friendly for those people who don’t use internet .therefore the
response is also quite good through this medium . Almost all newspapers publish a
separate page in which the agents and builders promote their business .for ex- Telegraph ,
Anandabazar patrika , etc publish a page called : ” REAL ESTATE”

✓ Internet - This has been a recent trend of advertisement by Real estate agents , there has
been found that lot of people spend most of their time in the internet , there are lot of
online portals for real estate agents thus they promote their business through them .the
response is also quite good . online portals like Magicbricks.com , 99acres.com,
indiaproperty.com are very popular in the real estate world as they promote the real estate
agents and builders.
Organization Structure

FIG 2.2
Channels of real estate Industry

The real estate industry is a multi-channel industry. Therefore, builder companies have several
types of customers with diverse characteristics:

Construction Department
It consists of Civil Engineers ,Architects, contructors ,builders or foremens etc, who have the
responsibility of construction of the projects.

Financial Department
It has the responsibility of handling all the decisions regarding the finance. It consists of
collection, budgeting , cash flow, accounting etc.

Sales & Marketing Department


It consists of Sales force, Marketing Managers, Advertising Managers responsible for calling to
the clients and clients follow ups and providing solutions to the clients according to their
requirements.
It categorises in to three departments
1, Real Estate Department
2. Magazine Department
3. Rent Department

IT Department
It consists of IT engineers, Hardware engineers who handle all the technical problems.
Legal Department
It consists of lawyers who handle legal issues related to land and property.

Quality Control Department


It consists of quality control managers who handle the quality related issues.

Supervision department
It is responsible for monitoring all the activities taking place in the office. Responsibilities
undertaken by the team leaders and apex bodies of the company.
Chapter:3............Review Of Literature

The Real Estate Scenario in India is witnessing a huge growth as most of the metropolitan cities
are escalating the property map with more and more projects. According to reports, an estimated
size of the Indian real estate sector is $ 12 billion of country’s 600 billion economy. the real
estate sector is witnessing a stable and further sustainable boom and the market is expected to
reach $45 billion in next five years. This boom in the real estate market comprises of basically
three sectors, i.e residential, commercial and retail. This boom in real estate market can be
apparently observed in delhi, greater noida and other major cities of the country .
As the demand is getting higher, more and more players are entering the industry with a wide
range of project to offer . The market trends in indian real estate sector are very healthy and are
indicating towards a positive trend for the long-term investors. Other factors which are likely to
contribute to long term demand for real estate in india are rapid population growth, rising
disposable incomes for individuals and easy credit lending facilities .
To conclude Indian real estate sector promises to be a lucrative destination for foreign investors
into the country. The Indian realty sector, if channelized properly, can be help the growth of
several other sectors in India through its backward and forward linkages.

Sullivan and Ross (1999) The existence of the real estate brokerage industry is generally
attributed to high transaction costs in real estate markets. Brokers are typically expected to
market sellers' properties, assist in contract negotiations, and coordinate the post-contract tasks
necessary to close transactions. Presumably, brokers can perform these duties at lower cost than
sellers. In addition to cost efficiencies, brokers may also impact market outcomes. Numerous
researchers have investigated whether or not the use of brokers as well as various broker actions,
broker characteristics, and broker/seller legal relationships affect market outcomes in the form of
price and/or, time-on-the-market effects.

Greco (1991), Marsh (1998), and Schumell (1996) that the promotional strategies has impact on
customer’s influence to invest in real estate sector, it’s important to give attention to the change
of consumption idea and the use of cultural marketing in real estate enterprises. Based on the
research first is to to create architectural style, to increase the value of the community and reflect
the owner quality; Secondly ,it should build a good community atmosphere.

Wang (1994) according to this study builders & agents must strengthen brand creation, brand
protection, and create belongs to own brand advantage for obtaining good marketing effect. The
establishment of the brand have to be clear from the following points, first of all, the
understanding of the concept of brand, Enterprises should establish its image in the consumers'
mind, take it from other similar products differences; Second, we must establish harmonious
public relations, and constantly improve the popularity of products in the society; Third, we need
to take the good faith for this, on the premise of ensuring the quality of the real estate, property,
and the authenticity of ads, not making false promises to consumer fraud.

Shukla Ravi (2004), Real estate industry has become the pillar industry of the national economy.
With the growing industry, marketing has become the most critical factors in the system as a
whole. Real estate industry in three line cities is in the preliminary stage of development,
according to the characteristics of the current three line city real estate market, the correct
implementation of marketing strategies is an important part of real estate enterprises’
development.

Robert A. Olsen , 2001, O'Barr and Conley according to the author this article suggests that, Real
estate enterprises of three line cities want to achieve business goals, depending on the purchasing
power of consumers. So, the real estate enterprises should pay attention to the needs of the
consumers in the marketing activities, only meeting customer demands, the real estate businesses
achieve sales goals and develop better

Tahira K. Hira and Cazilia Loibl,2008, Real estate as a kind of high consumption goods, how to
carry out accurate positioning, is very important to influence people's buying. This requires real
estate enterprises’ marketing personnel to do a good job of marketing, consumer groups clearly
positioning. But in three lines, real estate enterprises lack the consciousness of market
positioning, and did not give more attention to it. In fact, after planning the marketing
positioning of real estate, it is able to get more of consumer recognition, the possibility of its
accurate market positioning is also higher.

According to Ronald &lisa (1998) If Real estate enterprises want to survive in such a complex
market environment, it should meet the actual needs of its customers to product the goods for
customer needs, and real estate enterprises will have to pay special attention to the real estate
marketing to the production and sales of marketable goods.
According to Robert A. Nagy and Robert W. Obenberger (1994) Previous studies of impact of
region on Real estate goods. Real estate belongs to region, this makes the real estate products
bound by the city and area. The supply and demand and price level of real estate products are
affected by local regional economic development, consumption level, customs and culture, etc.
So different cities because of the different economic development level, also have a significant
difference between supply and demand and price levels.
According to Fang Fang (2013) Real estate enterprises used a large number of the outdoor
advertising, in the form of television advertising and publicity in recent years in order to be able
to better make consumers understand real estate product information, this way indeed promoted
the real estate sales, and had played a positive role. However, some advertising is also wrong,
with false information and fraud and other prominent problems, causes disturbing the order of
the 's real estate market, and leading to legal disputes.

According to Fang Fang (2015) study about building a relationship with the clients using a
simple marketing strategy, keeping a database of clients and those who have shown interest in
purchasing your property. Keep an inventory of all those who have called to enquire about a
property and the best thing to do is to offer seasons greetings through emails and phone calls.
This allows you as an agent to build healthy relationships with potential customers. If you treat
them nicely, they will not forget you and they will contact you whenever they need any property
during the year.
Chapter: 4........Research Methodology

Need of the Study

The study needed for the requirement of resolving the issues of clients who were looking for
purchasing or selling a home for their needs.

The Primary Issues are:

➢ Client’s search for home should be within their budget range.

➢ On the basis of location priority, i.e., desired area, desired city or locality.

➢ On the basis of reach & accessibility, connectivity.

➢ On the basis of Family Type i.e. required small home for Nuclear or requiring big home
for Joint family.

➢ Requirement on the basis of residents selection i.e., there desire to live among the society
of blue collar or white collar employees.

➢ Some clients are looking for investment purpose and some for end uses , the people who
are looking for investment purposes their queries related to the return on investment and
for end user queries related to time horizon , quality of the apartment, Facilities and
amenities provided by the builder.

➢ Time horizon consists of Ready to Move apartment or getting possession after few years.

OBJECTIVES OF THE STUDY

▪ To study the ways by which the small agents and builders promote their business .

▪ To get the knowledge about how the small agents operate.

▪ To study which mode of advertisement agents and builders prefer

▪ To study which mode of advertisement used by them is effective.


RESEARCH DESIGN

Study about Small Agents and Builders of real estate in Gurgaon.

Method:

Population :- Our Population are the Small Agents and Builders of real estate in Delhi NCR.

Sample size: 50

Sampling Techniques :- Non Probablistic Techniques

Sample Unit :- Small agents & Builders

Procedure: taking sample from areas such as :


i)SouthGurgaon

ii)North Gurgaon

Sources of data :-

Primary source: Visiting Customers

Research Instrument
Questionnaire

Scope of the study

Real estate companies come in all sizes. There are national real estate companies with thousands
of agents whose logos are recognizable throughout the country. Other companies are small
operations, with about a hundred, a dozen, or just one agent working for the company.
Regardless of its size, survival of a real estate company often depends on the company’s
successful marketing strategy.
For a real estate company, the marketing strategy pitches the company as a whole, using a
combination of advertising and public relations to brand a company and create a desired public
image.

Branding

Marketing a real estate company involves developing a recognizable brand. This begins by
creating a distinct logo and possibly, a slogan. As part of the marketing plan, real estate
companies use logos and slogans consistently on their business cards, letterhead, personalized
promotional gifts, websites, blogs, signs, advertisements, mailings and flyers.

Internet

Today’s real estate company typically incorporates Internet marketing into its overall marketing
strategy. This might include development of a website, blog, Twitter and online visual tours.
Internet marketing has something for every budget, from free social networking, blog and
Twitter accounts, to expensive websites and paying to place virtual tours and ads on third-party
real estate websites.

Time Frame

Marketing plans for a real estate company are often long-term projects. One example is known as
"farming," which involves sending out monthly or quarterly mailings to a specific set of
addresses over a long period. The premise of farming is that a potential client, after repetitively
receiving the company’s mailing, will call when a need for real estate services arise. This also
applies to marketing programs that involve sending regular mailings to a client list.

In India, small real estate investors currently do not have as much scope as institutional
investors. They can hold multiple properties, but banks will generally not fund beyond a second
home loan.
That does not mean they cannot invest beyond that from their personal accruals. They certainly
have the option of investing in rent-generating assets, which can fetch very decent returns if they
have been purchased wisely.

Despite the present limitations for small investors, a property investment can give the buyer
protection against inflation. Like gold, real estate tends to retain its intrinsic value. However,
unlike with gold, it is possible to earn a regular income on it.

Areas visited
Location map of Gurgaon District

FIG 4.1

Location Map of Tulsiani Easy in Homes affordable housing sector-35 South Gurgaon
FIG 4.2

Location Map of Pyramid Urban Homes “Sector 70-A, Affordable Housing


FIG 4.3
Location Map of ZARA Aavaas Sector 104, Dwarka Expressway, Affordable Housing

FIG 4.4
Location Map of HCBS Sports Ville, Sector 35 South Gurgaon Affordable Housing

FIG 4.5

Limitations of the study

Since the study had to be completed in the time span of two months where the field of study was
vast, another limitation was area of operation though I am not a resident of gurgaon it was tough
for me to visit areas which I had never heard of, I was assigned to locate builders, small agents
and to make them understand how internet advertisement can expand their business , it was
difficult for me to make small agents understand about internet advertisement who haven’t used
computer’s throughout their life . while locating agents use of internet was strictly banned thus
we had to physically look for agents in different localities by asking from people residing in that
area .
We had to bring the visiting card of Agents we had visited and most of the small brokers owned
tea shop , runned small business thus they never had any visiting card , another difficulty was
that it was difficult to introduce my association the NESTKEYS without any Identity card .
For all this reason I had restrict the sample size to 30 respondents which have been chosen
randomly
Chapter: 5........Data Analysis And Interpretation

• People surveyed according to their time duration in real estate business?

15

10

C B A
0
Recently 2-5 years More than
started years

Fig 5.1

Interpretation :

From the above survey it can be clearly seen that there are new agents who are entering the real
estate business out of 30 respondent 9 are new players and have recently started this business
which shows how real estate market is booming at a fast pace and the majority of the respondent
are in this business for more than 5 years which also indicates that they have got the return from
that business which had made them stay longer.
• People Surveyed according to their role in real estate business

ROLE

Agent - 50

Builder - 40

Others - 10

Fig 5.2

Interpretation

• One of the reason as to why there are more agents is their brokers and sub- brokers who
are categorized under agents , also in places like jessore road , Dumdum road, lake town
(north gurgaon), badshahpur, sohna road we find more agents then builders .

• Around 50 % of the respondents were agents, 40 % were builders and 10% were sub-
brokers who are also called part time brokers.
• People surveyed to know whether advertisement creates an urge for them to buy a
product?

18
No of respondents

16
14
12
10
8
6
4
2
0
yes no can't say

Options

Fig 5.3

Interpretation

• This particular question was asked to find out their view as to see what is their view
regarding advertisement

• Many respondent said yes because they use different modes of advertisement to promote
their business. Those agents who said no which were around 8 respondent still believed
in word of mouth and they didn’t promote their business as they got business through
their initial reputation which they had created in the market.
• People surveyed to Find whether they need to advertising their property or they do it
through word of mouth

NEED

YES -22

NO -8

Fig 5.4

Interpretation

• Almost everyone believed that advertisement is necessary without which their business
cannot run as they see lot of competition in the market .

• The other reason which make them advertise is number of agents and builders in a
particular area . so to get better contacts or a name in the market advertisement is
required , respondent who said no where those who believed in word of mouth .
• Agents and builders surveyed to know how often they take the help of advertisement.

25

20
no of resondents

15

10

0
Very less Always Not required

options

Fig 5.5

Interpretation

• This was a very interesting question for them and the answer which I got mostly was
‘Yes’ the reason was there has been lot new construction which enables Builders and
agents to advertise .

• Also to find a place in the market to maintain the goodwill they had to advertise to keep
themselves updated.

• Agents and builders surveyed to know which mode of promotion got them more
response. (those who prefer advertisement)
100%
% OF RESPONSE
0%
Internet
Television
Newspaper
others
MODES OF PROMOTION

Fig 5.6

Interpretation

• People still believe Newspaper as the most trusted and preferred mode of advertisement if
we talk about other modes internet is booming at a quite fast pace though it is not able to
catch the speed newspaper but the soon a time will come when internet will become the
most preferred mode

• Other reason why internet mode is still lagging behind newspaper is that many agents are
not computer savy as they don’t have much knowledge about computers .

• People surveyed to know their view regarding the current popularity of Internet
Advertisement (1 refers – very poor , 5 refers – very good )
5

POPULARITY RATING
4

0 2 4 6 8 10 12 14 16

NO OF RESPONDENT

Fig 5.7

Interpretation

• After conducting this survey it was thus found from agents and builders point of view
that currently Internet advertisement is quite popular in the market generally agents who
are using internet advertisement find it quite user friendly and easy to use , whereas who
hasn’t used internet advertisement still find it to be quite popular as they hear it from their
friends who are in this field.

• There where agents who rated it as 1(very poor) as they had invested in online
advertisement but they didn’t got any response.

• Agents and builders surveyed to know their preferred mode of advertisement


Newspaper -45

TV-5

Internet -35

Others-15

Fig 5.8

Interpretation

• I got mixed responses as still 45% of respondent still believed newspaper as their
preferred mode due to reliability and trust factor , which they thought internet
advertisement won’t provide.

• Respondents who do internet advertisement said they will not switch to other mode of
advertisement as they find online ad as cost effective , comes in their budget , more
visibility in terms of duration of advertisement.
• Agents and builders surveyed to know which online portal provided them with more
response ( if they advertise online)

OTHERS
ONLINE PORTALS

INDIA PROPERTY

99ACRES

MAGICBRICKS

0% 10% 20% 30% 40%

% OF RESPONSE

Fig 5.9

Interpretation

• This was asked to those agents who used internet advertisement as to find out which
online portal gave them more response their was good fight between Magicbricks and
99acres .

• Thus is states that 99 acres and magicbricks are very close competitors of each other
despite magicbricks have upper hand because it falls under the times of india group

• People surveyed to find out whether internet advertisement will become popular in days
to come
70%
60%
50%
% OF RESPONSE
40%
30%
20%
10%
0%
YES
NO
CAN'T SAY
OPTIONS

Fig 5.10

Interpretation

• Most of the people believed that internet advertisement has emerged as a new media for
advertisement which provides a good impact

• Most people who has used internet advertisement believed that it increases the sale of any
product and it had a good future ahead due to invent of so many technology .

• Many believed that it will still take time to be the best mode of advertisement.
Chapter: 6........Findings and Conclusions

FINDINGS

• Through survey it was found that are very few brokers who are computer savvy.

• Many agents where were also found as sub-brokers who run their business through a tea
shop & misguiding the clients in their investment decision.

• By research it was found that there are more brokers then agents due to which clients
suffer a lots.

• It has been found that mostly builders prefer Internet advertisement as their main source
of advertisement as compared to that of an agent.

• Agents still rely upon Newspaper, Hoardings, Banners as a mode of their promotion to
expand their business

• Very few agents completely rely upon online advertisement & they don’t have proper
knowledge of current interest rates.

• Builder and agents in outskirt of Gurgaon have a little knowledge about internet
advertisement .

• Before buying any product people look in the internet about its features and cost to make
a decision whether to buy that product or not.

• Magicbricks.com has a build a good reputation with those who have experienced its
service.
CONCLUSION

There has been a significant change in the way small agents and builders operate. Advertisement
has been their main source to promote their business most agents and builders are changing their
mode and switching to Internet advertisement which comprises of so many benefits by doing this
agents and builders are getting a good responses, as nowadays people are spending more time in
the internet as it provides everything in just a click.

Though there has been a significant rise in online advertisement still Newspaper advertisement is
still hugely demanded as we all know newspapers over a period have built a strong level of trust
and confidence in the people which is unmatched by any other form of media.
Thus online media has its use as it is booming at a fast pace and is becoming the choice for
agents and builder to promote their business still it comes second after newspaper in terms of
popularity, trust ,response etc. therefore newspaper advertisement for advertising is the still the
best medium to promote business and it may take more approximately 4-5 years to become the
most preferred mode of advertisement.
Chapter: 7........Recommendations
• After doing the research it was found that 99acres is one of the main competitors thus
Nest keys should focus on providing more benefits to their existing as well new client.

• Nestkeys should focus on small agents as well (mainly who are new and financially not
strong) .

• Magic bricks as an associate of nest keys have got a good brand image as it comes under
Times of India, so the company must put more emphasis on promoting their portal in
local newspapers and print media.

• Builders or promoters who are satisfied with the service of Magic bricks should take
some reference from them and convert them into their clients.

• Magic bricks should also introduce package of low amount which will bring in more
advertisement from agents who have recently started their business.

• The company should Campaign in the outskirts of gurgaon and provide builders and
agents about how they can be benefited through internet advertisement.

• Magic bricks as an associate of nest keys is one of the top online portal , as internet
advertisement is growing rapidly it should maintain its goodwill by providing its clients
with offers and good after sale service which can help them bring in more clients.
BIBLIOGRAPHY

Books Referred

➢ Dr. Jai Narain Sharma, The discipline and its Dimension, Deep & Deep Publications Pvt.
Ltd., New Delhi.

➢ R. Panneersevam, Prentice-Hall of India Pvt. Ltd, New Delhi, 2008.

➢ Dr. S. Shajahan, Research Methods for Management, 2nd Edition, 2004.


Journals

➢ Lan Ziyong, The Analysis Of Main Factors Influencing The Real Estate Marketing
Strategy, Chongqing, China: Chongqing University, 2006.

➢ Yang Pao, Research On Real Estate Enterprise Marketing Strategy Innovation,


Nanchang: Nanchang University, 2010.

➢ You-Cai Yang, Wl Jh Real Estate Project Marketing Planning Scheme, Changchun,


China: Jilin University, 2013.

➢ Li-Xia Yan, “The Application Of The Experience Marketing In Real Estate


Marketing,” Journal Of Enterprise Economic, Pp.69-70, Nov. 2005.

➢ Guo-Jun Liu, A Company's Marketing Strategy Of Real Estate Project Research,


Changsha, China: Hunan Normal University, 2014.

➢ Zhang Gengquan, “Design And Implementation Of The Theory Of Real Estate


Marketing Planning Scheme,” Journal Of Commercial Economy, Vol. 10, Pp. 31-
59,Oct. 2011.

➢ Lei Chen, Ma Dejun, “Introduction To Real Estate Marketing Strategy And


Innovation,” Journal Of Information Science And Technology, Vol. 20, Pp. 477-
478,Oct, 2010.

Websites:-
➢ www.valueresearchonline.com

➢ http://www.ebook3000.com/Investment-Analysis-and-Portfolio-Management---
Solutions-Manual_html
➢ http://www.wepapers.com/Papers/Investment_Analysis_and__Portfolio_Management
➢ http://www.experiment-resources.com/research-methodology.html
➢ http://www.saching.com/Article/Factors-that-can-affect-investment-decisions-for-
maximum-return-on-investment
➢ www.yahoo.com
➢ www.google.co.in
➢ www.rediff.com
➢ www.magicbricks.com

➢ www.tbsl.com

➢ www.google.com
Questionnaire

Name:
Age:
Sex:
Locality:

1) From how long you have been in real estate business?

a) Recently started b) 2-5 years c) more than 5 years

2) What is your role in Real estate Business?


a) Agent b) Builder c) Others

3) Does advertisement urge you to buy a product?

a) Yes b) No c) Can’t say

4) Do you need to advertise your property for sale?

a) Yes b ) No

5) How often do you put your advertisement for sale of a property?

a) Very less b) Always c) Not required

6) By which mode of advertisement you have got more response?(those who prefer
advertisement )

a) Internet b) newspaper c)Television d)Others

7) Mark the popularity of internet advertisement on the scale of 5?(5- refers very good, 1-
very poor)

a) 1 b)2 c) 3 d)4 e)5

8) Which mode of advertisement do you prefer in terms of Real estate? ( if they prefer doing
advertisement)
a) Newspaper b) Internet c) T.V d) others

9) Which online portal has gathered you more response if you advertise online ?

a) Magic bricks b)99 acres c)India property d) others

e) don’t use online ad

10) Do you think internet advertisement will become more popular in days to come?

a) Yes b) no c) Can’t say

Other attachments

Site picture of Pyramid Urban Homes “Sector 70-A, Affordable Housing

Image 7.1
Image 7.2

Site picture of HCBS Sports Ville, Sector 35 South Gurgaon Affordable Housing

Image 7.3
Image 7.4

Image 7.5
Image 7.6

DUMMY IMAGE OF PYRAMID URBAN HOMES SECTOR 70 A GURGAON

Image 7.7
Image 7.8

COST SHEET OF PYRAMID URBAN HOMES

Pyramid "Urban Homes" Sector 70-A, Affordable Housing


Carpet Area Price 4000/- PSF & Balcony Area Price
500/- PSF
1 BHK 2 BHK
Type
Type A Type B Type A
B
Carpet Area 348.00 1392000 354.00 1416000 501.00 2004000 503.00 2012000
Balcony 65.00 32500 53.00 26500 100.00 50000 100.00 50000
Unit Area 413.00 407.00 601.00 603.00
Super Area 590.00 581.43 858.57 861.43
Total 1424500 1442500 2054000 2062000

1 BHK 2 BHK
Payment Process
Type A Type B Type A Type B
At the time of 5% of
71225 72125 102700 103100 5%
Application TC
At the time of 20% of
284900 288500 410800 412400 20%
Allotment TC
6th Month from date of 12.5%
178063 180313 256750 257750 13%
Allotment of TC
12th Month from date 12.5%
178063 180313 256750 257750 13%
of Allotment of TC
18th Month from date 12.5%
178063 180313 256750 257750 13%
of Allotment of TC
24th Month from date 12.5%
178063 180313 256750 257750
of Allotment of TC
30th Month from date 12.5%
178063 180313 256750 257750 13%
of Allotment of TC
36th Month from date 12.5%
178063 180313 256750 257750 13%
of Allotment of TC
Total 1424500 1442500 2054000 2062000

Cheque Issued in Favour of "Pyramid Infratech P. Ltd. A/c Urban Homes"

Service Tax Extra -


3.62%

Terminologies of Real estate

TYPES OF PROPERTY:

Free Hold Property: Means a property where the owner has complete and absolute ownership
of the land and all buildings that stand on the land. The owner of the freehold property is
therefore in a position to do what they wish to and with the property in accordance with local
planning regulations. The majority of property in the market is freehold and most buyers don't
even need to check.
Lease Hold Property: A property "bought" for a certain period of time. The "owner" of such a
property will have "bought" the property from the original landlord and is entitled lawfully to
rent, lease or "sell" the property to a third party during the period of leasehold. After the
leasehold period, the property goes back into the original landlord's possession.

Residential Property: Residential property means a housing unit used for living purpose and is
not used for carrying any kind of business operations. A residential property can be of following
types: -
Apartments
• Builder Apartments
• Penthouses
• Group Housing/Society Flats
• Duplex's
• Studio

Land/Builder Plots
Villas/Kothi's/Town Homes
Independent Floors/Builder Floor

Commercial Property: - means a property which is used for carrying out any kind of business
activity. The term commercial property (also called investment or income property) refers to
buildings or land intended to generate a profit either from capital gain or rental income. A
commercial pr operty can be of following types: -
Industrial
• Manufacturing Industry
• Service Industry

Institutional
• Hospitals
• Educational Institutes
• Community Centers
• Clubs
• Commercial
• Local Retails Markets
• Malls
• Hotels
• Office Space/ Business Parks
• Shop Cum Offices (SCO)

SEZ
• Single Product

Multiple Products
o IT SEZ
o Export SEZ
o Any Specific SEZ

SPECIAL ECONOMIC ZONE


As SEZ is a geographical region that has economic laws that are more liberal than a country's
typical economic laws. An SEZ is a trade capacity development tool, with the goal to promote
rapid economic growth by using tax and business incentives to attract foreign investment and
technology. Today, there are approximately 3,000 SEZs operating in 120 countries, which
account for over US$ 600 billion in exports and about 50 million jobs. By offering privileged
terms, SEZs attract investment and foreign exchange, spur employment and boost the
development of improved technologies and infrastructure.
TYPES OF AREA:

Carpet Area: The actual area you use. The area on which you can put a carpet on, that is the
area of inner side of wall to wall. The carpet area is generally around 70 -75% of the Super built
up area.

Built- Up Area: Over and above the carpet area and includes the space covered by the thickness
of the inner and outer walls of the flat it is generally around 10% more than the carpet area.
Thus, Built up area is Carpet Area + Area of walls and ducts + 1/2 the Area of terrace.

Super Area: Super Area is normally estimated by architects as Built-up Area plus the
proportional share of the common amenities like building corridors, circulation areas, lobby,
elevators, stairs, community halls, shafts, security/servant quarters, motor room, park and
recreational areas, basement, sub -station, garbage chutes, window projections, generator areas or
any other shared services area etc. Some developers even include swimming pool and club house
while charging for these services separately as one time membership fees.

MEASUREMENT PARAMETERS:
A property is generally measured in the following units: -
Square Feet (Sq. Ft.)
Square Meter (Sq. Mt.)
Square Yard (Sq. Yd.}
Acre
Hectare
Marla
Kanal

In North India Land is generally measured in terms of square yards or square meter and
apartments/flats are generally measured in terms of square feet.

SALES TERMINOLOGIES:

Pre - Launch Sales: Also known as soft launch means sales of the project without 100%
approvals for the development of the project off (at e there are many builders who are promoting
prelaunch sales of their project by giving the advantage of price to the buyer who are willing to
buy the project without 100% approvals. As soon the project is launched either the prices are
revised upwards or the apartments at good locations are already sold.
Launch Sales: Means sales of the project which has 100% approvals normally in Northern India
the sales of the project start in the pre- launch phase only.
FAR & FSI: FAR means Floor Area Ratio & FSI means Floor Space Index and is used for
residential properties. Both of them mean the total area that can be constructed in a particular
piece of land for eg. Suppose If the FAR of a property is 1.75% and the total land area is 10
acres then the total area that can be constructed in square feet will be: -
10 acres * 43560 sq. ft. = 435600 sq.ft.(Converting to sq.ft.)
1.75% (FSI}*435600 = 762300 sq.ft.(Multiplying FAR of the plot with total sq.ft. area of the
plot)
So the total area that can be constructed is 7,62,300 sq.ft. Higher the FSI, lower is the price of
the property as more houses can be built on the same piece of land and vice versa

Land Coverage: Means the maximum land that can be covered for construction the smaller the
size of the plot greater is the land coverage area the bigger the size of the plot the smaller is the
land coverage area.
Density: Refers to the population that is allowed in one acres of land. Talking about Gurgaon the
current density allowed is around 250 PPA (Person/ Acre) and in Noida & Greater Noida the
current density which is allowed is around 600 PPA (Person/ Acre). In Gurgaon the average size
of the entire apartment made in the complex should be around 1900 sq.ft. and in Noida the
average size is around 1200 sq. ft.
Floor Plan: Means the layout of how the apartment will look like and the size of the
unit/apartment it shows how the layout of the different rooms will be their sizes and
connectivity. A particular floor plan also mentions that a particular size is available in which
particular block of a building.

Cluster Plan: Also known as tower layout it is the layout of the entire building; it shows the
layout of all the apartments on the floor and number of apartment on the floor the locations of the
stair case lobby lifts etc. It also helps in analyzing the distance between the apartments and the
merging of the different sizes.
Site plan: Means the layout of all the buildings in the complex.

Allotment Letter: It is a document issued by the builder to the buyer of the property mentioning
the number of the unit or apartment being allotted to the buyer and details of how the payments
have to be made.

Builder Buyer Agreement: It is the most important document in case of primary bookings it's
the agreement that contains all the term s and conditions of the purchase of the property the total
prices of the property and the payment schedule. It is signed by both the buyer and the builder.
There are two copies of the same in original; one is retained by builder and the other by the
buyer.
EWS: - Means Economic Weaker Section. The government has made it mandatory in some
group housing projects and Townships to build houses particularly for selling it to individuals
belonging to Economically Weaker Sections of the society.
PRICE LIST & COMPONENTS:
Basic Sale Price :- Also known as BSP it means the cost of the property without any kind of
extra charges.
EDC & IDC :- External Development Charges & Infrastructures Development Charges are
basically charged by the government for the overall development of the area such as roads parks
drainage systems sewage electricity wiring etc. It is charged by the builder of the property to
buyer and the same is been deposited with the government. The builder charges the EDC & IDC
at the current rates however in case of any further revision of the charges by the government the
builder has the right to ask for the revised charges from the buyer. EDC & IDC are charged in all
the projects in India apart from Noida & Greater Noida however in Jaypee's project in Noida and
Greater Noida EDC & IDC is charged. EDC & IDC are mandatory charges.

Lease Rent: - Lease rent is charged in Noida & Greater Noida only. As all the properties are on
lease hold with the authority these charges are collected by the builder form the buyer and
deposited with the authority. Normally the lease rent is paid for a period of 99 years and it is
believed the authority will come up with some provision in future and will take nominal charges
and will convert the lease hold into freehold property. Lease rent is a mandatory charge.
PLC: - All the apartments in the complex don't enjoy a premium location some apartments are
better than others so to differentiate between an apartment at a good location and bad location the
builder charges Preferred Location Charges(PLC). PLC is not mandatory. There can be different
types of PLC: -

Floor PLC: Builder charges extra payment for apartment on lower Floor. This is a
concept being followed in Northern India in rest of India PLC's are charged for higher
floors.
Landscape/Garden PLC
Corner PLC
Road Facing PLC
Club House Facing PLC
Pent House PLC
Top Floor PLC
Any Specific Unique PLC
Golf Course Facing PLC

Power Backup Charges: - are mandatory charges builder provides 2 types of power backup: -
•100% Power Backup: - means you can use all you appliances in case of a power failure
•Specific Power Backup: - means a builder provides you with a connection with the upper limit
defined for ex. 2 KVA or 5 KVA thus restricting the use of the electricity.
In both the cases a separate electricity meter is installed and the buyer has to pay according to the
actual consumption of the electricity

EEC: -Electric connection charges are being charged for the laying of the electricity wires and
points. EEC is mandatory charges
FFC: - Fire Fighting charges are being charged for the installation of fire-fighting equipment.
FFC is mandatory charges
Car Parking Charges: - builder's charges separately for the car parking

Covered Car Parking: - means car parking in the basement area.


Open Car Parking: - means car parking on the ground surface.
Stilt Car Parking: - it's a kind of covered car parking provision on the ground floor
since the ground floor of the building doesn't have apartments.

Club Charges: - also known as CMRC i.e. Club Membership Registration Charges these are one
time charges for the club membership. Club Charges may be mandatory or not, varying from
project to project. In case of some good club houses an annual fees is also payable. The club
membership cannot be sold.

IFMS: - Interest Free Maintenance Security Deposit is a fund maintained for major maintenance
of the project in the future. It's a onetime mandatory charge to be paid. The money collected
from this is deposited in a bank account but the residents of the complex don't get the interest
generated on this. Major maintenance for example includes - failure of power backup generator
any major repairs to be carried in the building complex or facade of the building.
Stamp Duty & Registration Charges: - these are the charges payable by the buyer to the
government for taking the possession of the property; different cities have different registration
charges. The government keeps on changing these charges from time to time. The charges
applicable at the time of registration are to be borne by the buyer.
Circle Rates: - these are the mini mum rates at which the registration of the property is done for
a particular area; the government has fixed the circle rates for particular localities within the city.
The way government is changing the policies it is expected that the actual rates at which the
property is sold will match the circle rates in 10 -15 years which will lead to no black
transactions in future.

Service Tax: Till date the Service Tax is applicable on 25% of the Basic Selling Price and is
charged at the rate of 12.36%. However, if we calculate the Service Tax for 100% Basic Selling
Price of the property, it
comes out to be 3.09%

Ex: BSP: 10,00,000


25% of BSP: 2, 50,000
Service Tax @ 12.36%: 30,900
Service Tax on 10,00,000: 3.09%

With effect from March 1, 2013, the effective rate of service tax on under-construction
commercial properties (irrespective of carpet area) has been increased from 3.09% to3.7%
Investment & Taxation:

The principal amount in the repayment of a home loan can be added to the 80 C limit of Rs1 lakh
for tax savings. The interest component of home loans is allowed as deduction under Section 24
B for up to Rs1.5lakh in case o f a self-occupied house. Incase the house is in the joint name of
your spouse and you (joint loan), each one can avail of Rs1.5 lakh interest component deduction.
The best part is that this limit I is only for self-occupied house. If you have property which is
rented out, you can deduct the full interest paid on the home loan. The rent o n the property does
become part of your in come . If the rent is lesser than the loan interest, it will lower your overall
tax liability. In any case, interest on loan offsets the rental income which is good for tax savings.
For joint loan and self-occupied home, it is important to show the loan repayment by both
husband and wife as they can avail of Rs1.5 lakh each on loan interest deduction. If the
EMI(equated monthly installment) is being paid from one account by ECS , pay your
contribution of loan repayment to your spouse by cheque. It will help in case o f IT assessment.
In case your spouse does not have any income, only you can take Rs1.5lakh loan interest
deduction.

You can avail of both the benefits of Home loan and HRA if you are paying rent on your
accommodation and have also taken a home loan on your own home. This is subject to your
home receiving rental income which is taxable .Union Budget 2013-2014 raised tax deduction
limit byRs1 lakh for the first time home loan takers to promote the housing sector. A person
taking a loan for his first home from a bank or a housing finance corporation up to Rs25 lakh
during the period1 -April-2013 to 31-March-2014 will been titled to an additional deduction of
interest of up to Rs1 lakh. If the limit is not exhausted, the balance may be claimed in 2015-16.
This deduction will be over and above the deduction of Rs1.5 lakh allowed for self-occupied
proper ties under section 24 of the Income-tax Act. The move is likely to promote home owner
ship and give a fillip to a number of industries including steel, cement, brick, wood, and glass
besides providing jobs to thousands of construction workers.

PAYMENT PLANS:

Payment schedule is provided by the builder mentioning details of how the buyer needs to pay
for the property and at what stages the other charges are payable by the buyer. The different
types of payment schedule are: -
Time Link Payment Plan (TLP):
This is a payment plan which is normally scattered over a period of 3 years. The buyer of the
property needs to pay for the property according to the schedule provided by the builder the
buyer of the property has to pay irrespective of the fact that the construction of the property is
happening or not.

Construction link Payment Plan (CLP):


This payment plan is also normally scattered over a period of 3 years but as this is linked with
construction it stretches till the time the construction of the property is not completed. The buyer
of the property has to pay in accordance with the construction of the property however the first
20% -30% payment in most of the project is time linked which is an industry standard this is the
most used payment plan by the buyer as it involves least risk since buyer doesn't need to pay if
the construction is not happening.

Down Payment Plan(DP):


In this payment plan 95% of the cost of the property is paid within 30 to 45 days of the booking
in the project and the remaining 5% is paid at the time of possession.

Flexi Payment Plan:


This is a payment plan which is between CLP & DP. Normally this payment plan is scattered
over a period of 3 years but as this is also linked with construction, it stretches till the time the
construction of the property is not completed. In this payment plan around 60% of the cost of the
property is paid within 30 to 45 days of the booking of the property and the remaining 40% is
scattered according to construction.

Assured Return:
This is more of a sales technique used by the builder to increase sales. It is on the lines of the
down payment plan or Flexi Payment Plan, where 95% or 60% of the payment respectively has
to be made within 30-45 days of the booking of the property. The builder doesn't provide any
type of down payment rebate.
The price of the property is according to CLP plan. Instead of down payment rebate the builder
gives assured return to the buyer for a particular period. For example if the cost of the property is
10 lacs and the assured return is 12% P.a. (for two years) i.e. 1% per month then the buyer of the
property will get Rs. 10000/-per month for two years.

NRI Investment

Q1. Who all can buy a property in India

Ans: Only a Resident Indians, NRI (Non Resident Indian), PIO (Person of Indian Origin), OCI
(Overseas Citizen of India) can buy property in India.
Resident India: An Indian citizen who is ordinarily residing in India and holds an Indian
passport. For all official purpose the Government of India considers Indian National who
stays for more than 182 days in a year in India as a Resident Indian.
NRI's: An Indian citizen who is ordinarily residing outside India and holds an Indian
Passport. A NRI is an Indian Citizen who has migrated to another Country. For all
official purpose the Government
of India considers Indian National away from India for more than 182 days in a year as
an NRI.
Person of India Origin (PIO): A person who or whose any of ancestors were Indian
nationals and who is presently holding another country's citizenship/ nationality i.e.
he/she is holding foreign passport. Any person who at any time held an Indian Passport;
or he or either of his parents or grandparents were born in or were permanently residing
in India as defined in Government of India
Act 1935 and other territories that became a part of India thereafter, provided, neither of
them were at any point in time a citizen of Afghanistan, Bhutan, China, Nepal, Pakistan
and Sri Lanka; or who is a spouse of a citizen off India or a person of Indian origin as
mentioned above.

Overseas Citizen of India (OCI): Also known as dual citizenship of India. A person
registered as Overseas Citizen of India {OCI) under section 7A of the Citizenship Act
1955. A foreign national who was eligible to become citizen of India on 26.01.1950 or
was a citizen of India on or at any time after 26.01.1950 or belonged to a territory that
became part of India after 15.08.1947 and his/her children and grand-children provided
his/her country of citizenship allows dual citizenship in some form or other under the
local laws is eligible for registration as Overseas Citizen of India (OCI). Minor children
of such person are also eligible for OCI. However if the applicant had ever been a citizen
of Pakistan or Bangladesh he/she will not be eligible for OCI.

Q2. Does NRI/PIO/OCI require permission of The Reserve Bank to acquire residential/
commercial property in India: -
Ans: No Permission is required by anyone.
Q3. What are the Types of property a NRI/PIO/OCI can buy in India?
Ans: NRI/OCI/PIO can buy any residential or commercial property in India; however they
cannot buy agriculture land in India.
Q4. Are there any restrictions on numbers of properties that can be bought and sold by
NRI/PIO/OCI?
Ans: There are no restrictions in terms of numbers of properties that can be bought by
NRI/PIO/OCI; however they can sell only two properties in a financial year.
Q5. How are the payments made by the NRI/PIO/OCI?
It is mandatory for NRI/PIO/OCI to make payments only from the below options for buying
Property in India:-

NRE Account: - Known as Non Residential External accoun these are special kind of accounts for
NRI's. This account can be opened with any private or nationalized bank of India.
NRO Account: - Known as Non Residential Ordinary account these are special kind of accounts for
NRI's. This account can be opened with any private or nationalized bank of India.

FCNR Account: - Known as Foreign Currency National Rupee Account these are
special kind of accounts for NRI's. This account can be opened with any private or
nationalized bank of India. It's a kind of fixed deposit account and one can maintain
account in a choice of 6 currencies: USD, GBP, EUR, JPY, CAD and AUD.
Wire Transfer: - It means transfer of payment directly from the Foreign Bank to the
desired Indian bank account. Is this case a wire transfer remittance receipt is issued by the
foreign bank confirming the amount transferred in Indian bank account. Foreign bank
charges a wire transfer fee which is around 25$ minimum or is some cases a percentage
of the amount to be transferred whichever is higher.

Q6. Can NRI/PIO/OCI sell their purchased property without the permission of Reserve
Bank?
Ans: Yes. Reserve Bank of India has granted general permission for sale of such property to the
following categories:-
Resident Indian
NRI
PIO- with approval of RBI
OCI- with approval of RBI

Q7. What documents required for booking of a property?


Ans:
Filled application form: An applicant form also known as booking form is provided by
the builder of the property mentioning the terms and conditions of the purchase of the
property. The buyer is required is to fill the form in the format prescribed by the builder.
An application form normally is made for maximum of three applicant(s).
Cheque of the booking amount in favor of the builder. The cheque can only be from
NRE/NRO or FCNR account.
Xerox copy of Indian Passport in mandatory in case of NRI's applicant(s) for all the
applicant(s). Xerox copy of PIO card is mandatory in case of PIO applicant(s) for all the
applicant(s), and Xerox
copy of OCI card is mandatory in case of an OCI applicants) for all the applicant(s).
Copy of Pan Card of all the NRRI/PIO/OCI applicant(s) if pan card is not available then
form 16 needs to be filled by all the NRI/PIO/OCI applicant(s). Some of the builders
don't require Pan Card and form 16 in case of NRI/PIO/OCI applicant(s).
In case of demand draft (DD ) the confirmation from the banker stating that the DD has
been prepared from the proceeds of NRE/NRO/FCNR account of the Applicant.

Real Estate in Greater Noida

Greater Noida Industrial Development Authority falls within the National Capital Region of
India’s capital - New Delhi and is adjacent to Noida, one of the largest industrial townships in
Asia. It conceptualizes the needs of a fast developing city of the future and has emerged as a
modern model of farsighted town planning. Availability of basic infrastructure is planned to
exceed demand at all stages of development and inter-flowing green spaces, a grid iron pattern of
wide roads for an efficient transport system, and a unique integration of industrial, commercial,
institutional and residential zones. The Action Plan and execution is at par with global standards
and is aimed at accelerating the growth of industrial, IT and institutional sectors in the country.
Greater Noida is shaping up as India's smartest city, the National Capital Region’s most modern
urban development. And the fastest-developing center of attraction for people from Delhi, Noida,
Ghaziabad, Gurgaon and Faridabad.
Being developed on 20,000 hectares with wide roads, underground cabling and drainage system,
the city offers amenities and infrastructural facilities of international standards. Among them are,
Reputed Educational Institutions, Shopping Centres, Medical facilities, Aesthetically-developed
Theme Parks and Entertainment Complexes- and even a 222 acre international designer Golf
Course. You couldn't ask for more!

Greater Noida is also poised to develop as the next major IT destination. National Capital
Region (NCR) ranks no. 3 in terms of the number of software firms companies based in it after
Mumbai and Bangalore. In case of the ITES sector, the NCR leads with 20% of the total number
of companies located in this region. Since the NCR has emerged as a hub for IT industry,
Greater Noida could emerge as an IT destination of the future leveraging its proximity to the
national capital and availability of quality urban infrastructure including housing.
Greater Noida is now looking for a mutually beneficial association with investors who could
become part of its vision to conceive and execute international standard -schools, colleges,
hospitals, offices, amusement parks and other projects. This association would be your destiny
through your vision.

Just 35 minutes from Delhi by the state-of-the-art Taj Expressway, Greater Noida boasts of
smart differentials:

Privatized power
Smooth and wide roads
Abundant clean sweet water
Underground drainage
Unfailing optical fibre-based telephone network
Trade Mart for handicraft promotion
Impeccable law and order
Landmarks with Global Identification

Real Estate in Gurgaon

Gurgaon’s metamorphosis from an economical wasteland to an IT hub in just two decades is


nothing short of remarkable. With the inception of the IT companies, Gurgaon also called the
'Millennium City’ has become the most sought after destination for residential as well as
commercial properties, so much so that it is often showcased as a symbol of ‘rising India’.

The city has emerged as the darling of property investors and real estate companies.
So what drives investment in Gurgaon? Real estate agents across the city agree that seamless
connectivity and availability of social amenities is acting as a catalyst in attracting investment
across the board.

The city has undergone a lot of infrastructural upgrade in the past couple of years that has
directly enhanced Return on Investment (ROI) and is further accelerating the growth in the
region .The areas such as Sohna Road, Dwarka Expressway and Golf Course Extension are
few areas that are currently seeing high real estate activity.

Sensing a great opportunity, Gurgaon has become a prime attraction for multinationals and
domestic industrial units to establish their bases in this growing city.

Gurgaon market has witnessed a gradual shift form affordable housing to luxury segment. The
percolation of sturdy wealth has led to the rise of affluent class, which in turn has made Gurgaon
an ultimate destination for luxury living.

Gurgaon remains promising for office space, and there are good prospects for more major global
players setting up operations here in near future. On the whole, this augurs well for the
residential property market, more or less assuring relatively healthy absorption of residential
space in the times to come. The new infrastructure initiatives of the Government will also play a
crucial role for Gurgaon's residential and commercial property sectors.

THE GREEN BUILDING CONCEPT

A green building is one which uses less water, optimizes energy efficiency, conserves natural
resources, generates less waste and provides healthier spaces for occupants, as compared to a
conventional building.

INDIAN GREEN BUILDING COUNCIL

The council is represented by all stakeholders of construction industry comprising of Corporate,


Government & Nodal Agencies, Architects, Product manufacturers, Institutions, etc.

CERTIFICATION

Green Townships are typically characterized by long periods of construction, which take place
in phases. The Certification of IGBC Green Townships is divided into three stages depending
upon the percentage of development completed.

Stage I - 50 % of total project infrastructure development is constructed

Stage II - 75 % of infrastructure and 25 % of residential development of the total project area is


constructed and in operation

BENEFITS OF GREEN HOME

A Green Home can have tremendous benefits, both tangible and intangible. T he immediate
and most tangible benefit is in the reduction in water and operating energy costs right from day
one, during the entire life cycle of the building.
Tangible benefits

Energy savings :20 - 30%


Water savings : 30 - 5 0%

Intangible benefits

Enhanced air quality,


Excellent day lighting,
Health & wellbeing of the occupants,
Conservation of scarce national resources
Enhance marketability for the project.

ELIGIBILITY
IGBC Green Homes Rating System is a measurement system designed for rating new residential
buildings which include construction categories such as

Individual homes
High rise residential apartments
Gated communities
Row houses
Existing residential buildings which retrofit and redesigned in accordance with the
IGBC Green Homes criteria
LEED INDIA

The Leadership in Energy and Environmental Design (LEED-INDIA) Green Building Rating
System is a nationally and internationally accepted benchmark for the design, construction and
operation of high performance green buildings.

LEED-INDIA provides building owners, architects, consultants, developers, facility managers


and project managers the tools they need to design, construct and operate green buildings.

LEED-INDIA promotes a whole-building approach to sustainability by recognizing performance


in the following five key areas:

Sustainable site development


Water savings
Energy efficiency
Materials selection and
Indoor environmental quality

LEED -INDIA rating system provides a roadmap for measuring and documenting success for
every building type and phase of a building lifecycle.